ReTour 668 Guerrero! UPDATE () => {5/16/19 -12:00}


(Tyler Maran) #1

Proposals went out last week to both of these properties. We have heard back from Guerrero and can start negotiating terms. Haven’t heard back from Folsom yet.

I would like to set another tour of both locations (same day, they are a few blocks away from each other and NoiseBridge). Hopefully we can get a good group of people in on this tour and get a good idea of the space and what kind of remodeling would need to be done. Tour is a tentative 5/9/19 at 12:00.

Next step will be sending along some financials and bank statements to verify income. With no objections, I’ll send these out later today.

Our Choices:


(Matthew McKenna) #2

Summaries look good and would be interested to hear how the proposals and negotiations go and help out if I can.

I’ll put that time tentatively in my calendar so hopefully I can visit the spaces too.


(Jarrod) #3

I’ve added 5/9/19 at 12:00 to my calendar. As far as I can tell I should be able to attend. Please let me know which we’re going to first.


(Tyler Maran) #4

Sorry guys - but there was some miss-scheduling between the realtors. This Thursday (5/9/19) is off. Instead rescheduled for Thursday (5/16/19) at 12:00.

I’ll make an announcement at next Tuesday’s meeting as well.


(Tyler Maran) #5

Got a redline back on the Guerrero St. property. They didn’t like our $8k opening bid lol. This is their first counter, so we’ll follow back up with $9k and meet in the middle at $10k. But their proposed annual rent stepup gives me some pause on this one.

I’ll keep on pushing, but I think it will end up being too expensive for us.

Guerrero_REDLINE_5.10.19.pdf (122.9 KB)


(Tyler Maran) #6

Here is our Folsom Proposal (subject to change):
Folsom Proposal.pdf (122.3 KB)

Definitely going to be some changes and pushback. We are proposing $9k/mo rent, a rent subsidy (based on tenant improvements) and a $6k of the security deposit to cover the first 2 months rent (brings rent to a blended $8k for the first year).

All these items are totally going to change when we get a return draft. Hopefully that will be by Friday of next week.


(Tyler Maran) #7

Folsom turned us down. They were not a fan of the business model and wanted something more standard.

Tour is still on for Thursday at Guerrero.


(Jarrod) #8

I may be running 10-15 min late.


(Tyler Maran) #9

That’s cool. I’ll be walking over from NoiseBridge around 11:45. You can just meet us at 668 Guerrero.


(Jarrod) #10

We’re here, just waiting in our car in front.


(Tyler Maran) #11

Can I get any opinions on this lease contract? I would like to send out a counter offer tomorrow:

Got a redline back on the Guerrero St. property. They didn’t like our $8k opening bid lol. This is their first counter, so we’ll follow back up with $9k and meet in the middle at $10k. But their proposed annual rent stepup gives me some pause on this one.

I plan to push back as well on the security deposit. Something closer to the initial offer, given that we need to make some significant improvements during our first month or two (pretty much rebuild a bathroom).

Guerrero_REDLINE_5.10.19.pdf (122.9 KB)


(David) #12

Raising the rent by 12k/year is crazy. What is reasonable maybe 3-5k/year? Any way we can ask for a free month or two to fix the bathroom?


(Ryan Sternlicht) #13

12k per year is not that much , 12 more philanthropic donors would easily allow us to cover that, and if we try hard to get people to sublet a bit of the space then that could cover it


(David) #14

You’re right maybe it’s not that bad or unreasonable (for me it’s a lot of money but maybe not for an organization).


(Tyler Maran) #15

I will still try to push back on some of the rent hikes. With this location, I think we could realistically grow the donation base pretty easily, but we still want to focus on piling up money to eventually buy.

They may go for $10k, $11k, $12k and flatline at $12. We can pitch it at least.


(Jarrod) #16

I really liked 668 Guererro.

The thing that is weird is the permit being issued to build a four story residential building at 668 Geurrero. Here is the link to the permit tracking system

https://dbiweb.sfgov.org/dbipts/default.aspx?page=permit&PermitNumber=201603182471

The permit was issued on or around 2019-02-04. This is pretty recent, someone has been working on this project very recently. They just need a contractor to pick up the permit and start building really. Maybe the developer got construction bids and found that things won’t pencil out, but this is very far in the process to have discovered that. I wonder what is up, why are they leasing it now?

That being said the previous building use was Workshop - Commercial if the building wasn’t built and the permit finalized then the property probably still has this as the current use according to Planning.

In RH-3 zoning per planning code the following are not allowed:
Entertainment, Arts and Recreation Uses
Industrial Uses

In RH-3 zoning per planning code the following require a conditional use permit:
Community Facility
School

We’ve made the argument in the past that we are a factory (industrial) or community facility in the past. If we are getting serious about leasing this space, we should speak with the a planner about what we do and if we can do it without a change of use at this location. If we can fit ourselves somehow into the workshop - commercial use with accessory educational use then maybe we can survive at this location. Otherwise, will be in violation of the planning code the moment we move in.

We’ll need to talk to planning about the property and our intentions and options for using it. We don’t want to sign a lease for a location where we’d be in violation of the planning code.


(Mark Willson) #17

Can you talk to Planning Jarrod or do you need someone to help out? Not that I have any free time, of course. But just to get things going