Development News for San Francisco, California

Lease Agreement Amendment for Retail Space at 44 Ellis Street Continued

The committee reviewed a resolution for Item 8, concerning a lease agreement between the City and TED'S INC for retail space at 44 Ellis Street. The proposed amendments included changes to rent calculation (8% of gross revenues retroactively from January 1, 2021), water charges ($2.4 thousand retroactively from February 1, 2024), minimum hours of operation, and waiving base rent and outstanding water charges for specific periods. Due to outstanding amendments, the committee voted to continue the item to June 17th. [cite: 816-844]

Office of Cannabis Awarded $2.1 Million State Grant for Equity Program

The committee approved a resolution authorizing the Office of Cannabis to accept an expanded grant award of approximately $2.1 million from the Governor's Office of Business and Economic Development (GO-Biz) for the Local Equity Grants Program. This funding, available from April 1, 2026, through October 31, 2027, aims to support local jurisdictions in assisting equity cannabis applicants and licensees. Since 2020, the Office of Cannabis has secured over $13 million in state grants for local businesses, which have reported high satisfaction rates and utilization. The grant will help businesses with costs such as rent, capital improvements, and regulatory fees, and can also be used for compliance with good neighbor policies. [cite: 630-692]

Public Health Department Contracts for Behavioral Health Services and Homelessness Support Approved

The committee reviewed two resolutions concerning the Department of Public Health's behavioral health services. Item 10 authorizes the department to enter into a performance contract with the California Department of Health Care Services for various programs, including the Behavioral Health Services Act, Crisis Counseling, and substance use grants, for the period of July 1, 2026, through June 30, 2029. Item 11 approves an amendment to a contract with Westside Community Mental Health Center to extend their short-term respite beds plus health stabilization support for individuals experiencing homelessness. This extension is for two years, increasing the contract amount by $13.7 million to $21.4 million. Both items were moved to the full board with recommendation. [cite: 939-1167]

Economic Recovery Hub Grant Amendment Sent to Full Board Without Recommendation Amidst Oversight Concerns

The committee reviewed and ultimately voted to send to the full board without recommendation a resolution to retroactively approve an amendment to a grant agreement between the Office of Economic and Workforce Development (OEWD) and Bay Area Community Resources (BACR) for the Community Economic Recovery Hubs. This amendment increases the contract amount by $1.5 million, bringing the total to approximately $16.8 million, for services provided from July 1, 2020, to June 30, 2026. The Budget and Legislative Analyst's office (BLA) raised concerns about OEWD's management and control over funds, leading to several recommendations. While OEWD addressed most recommendations, including clarifications on participant data, subcontractor details, and gift card policies, the BLA's concerns about the retrospective nature of the funding for already-provided services and the initial lack of robust program monitoring led to the decision to send the item forward without a committee recommendation. [cite: 54-570]