Except as provided by Sections 4.112, 4.113, 4.114, 4.115, and B3.581 of the Charter and by Sections 2A.173 and 23.36 of this Code, or as otherwise provided by the Charter or this Code, the Director of Property shall have the charge of the Lease of Real Property owned by the City. When the head of any department in charge of Real Property reports to the Director of Property that certain land is not required for the purposes of the department, the Board of Supervisors, by resolution, may authorize the Lease of such Real Property. The Director of Property shall determine the Market Rent of such Lease based on a review of available and relevant data. If the Market Rent of the Lease is more than $45 per square foot per year as base rent, the Director of Property shall obtain an Appraisal for such Lease. If an Appraisal determines the Market Rent of the Lease exceeds $60 per square foot per year as base rent, the Director of Property shall obtain an Appraisal Review for such Appraisal. Any Appraisal or Appraisal Review shall have an effective date of value that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors. The Director of Property shall arrange for such Lease to the highest responsible bidder in accordance with Competitive Bidding Procedures and for no less than the Director of Property's opinion of Market Rent if there is no Appraisal, or for no less than the Market Rent stated in the Appraisal if there is an Appraisal, unless the Board of Supervisors has by resolution found that (a) such Competitive Bidding Procedures are impractical or impossible or has authorized other means of award in furtherance of a proper public purpose, or (b) a lesser sum with further a proper public purpose. The Director of Property shall collect rents due under such Lease.
When the Public Utilities Commission, the Recreation and Park Commission, the Port Commission, or the Municipal Transportation Agency require approval of the Board of Supervisors to a proposed Lease of Real Property owned by the City, the applicable Commission or Agency shall determine the Market Rent of such Lease based on a review of available and relevant data. If the Market Rent of the Lease is more than $45 per square foot per year as base rent, the applicable Commission or Agency shall, through the Director of Property, obtain an Appraisal of the Market Rent for the Lease unless the Executive Director of the Port determines, for Real Property under Port jurisdiction, that the rental rate for the proposed Lease meets or exceeds the Port Commission's annually adopted parameter rental rate for such Real Property, and such Lease shall be for no less than the Market Rent established in the Appraisal unless (1) the Commission or Agency determines that applying the Market Rent requirement would interfere with its capacity in discharging one of its core functions under the City Charter, (2) the Board of Supervisors has found by resolution that a lesser sum will further a proper public purpose, or (3) the Commission or Agency determines, with Director of Property concurrence, that an independent, appropriately qualified real estate economic expert is better suited than an Appraiser to perform the rental analysis. If an Appraisal determines the Market Rent of the Lease exceeds $60 per square foot per year as base rent, the applicable Commission or Agency shall, through the Director of Property, obtain an Appraisal Review for the Appraisal. Any Appraisal or Appraisal Review shall have an effective date of valuation that is not earlier than nine months before the date legislation for the proposed Lease is submitted to the Board of Supervisors.
(Added by Ord. 15-01, File No. 001965, App. 2/2/2001; amended by Ord. , File No. 160361, App. 6/24/2016, Eff. 7/24/2016)
(Former Sec. 23.30 redesignated as Sec. 23.48 and amended by Ord. 15-01, File No. 001965, App. 2/2/2001)
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