The Presidio has been a very attractive home
for SFPRG and our member tenants since moving
in seven years ago. It is a beautiful site
that was particularly desired by Joe Weiss.
Jessica Broitman did a wonderful job finding
the site, first at 9 Funston and then adding
the next door neighbor at 10 Funston. She
negotiated a lease and arranged for devoted
SFPRG members and supporters to rent offices
in the buildings, paying rent that covered
their own offices as well as Clinic space,
conference rooms, and administrative office
space. The tenants are universally happy
with the beauty of the Presidio, the warm,
homey feel, and until recently, the easy,
free parking.
The problems with the Presidio rental
arrangement have always included the
liabilities set out in the lease for repairs
to the building, special restrictions on
making changes in the buildings, obligations
to carry certain types of insurance, and the
increasing rent (8% per year) imposed in the
last lease. We have tried to renegotiate a
reduced rent in the last year following the
economic downturn, and are awaiting a meeting
with the Presidio Trust.
We have several options available to
us:
1) We could continue to stay at the
Presidio (which would be the easiest thing to
do), assuming we could negotiate a long-term
lease that SFPRG and our tenants could afford.
2) We could move to another building to
rent that was more financially consistent
with our resources and hopefully would be
just as attractive, accessible, and desirable.
3) We could buy a building that we could
move to permanently so we could control our
future and avoid potential devastating rent
increases. If we bought a building, we could
either have SFPRG buy the building directly
if we could raise enough money in a capital
campaign, or we could set up a consortium of
"Friends of SFPRG" who could own the building
as an investment, rent to SFPRG, but at less
than market rates, again with the idea to
protect SFPRG financially.
We have a small group of people
including Marcia Herman, Rob Petitpas, and
myself who are meeting with a commercial real
estate agent and starting to look at
buildings of comparable space to assess costs
of buying or renting. When we get some more
information about numbers, we will meet with
the tenants at 9 and 10 Funston and discuss
options and what everyone wants to do. It is
a very exciting time and we would love input
and help from all interested people.
Have a good month. We will talk
again in May.
Steve Foreman