Title
Report regarding a resolution authorizing the City Manager to execute an amendment to the Sublease Agreement with Fitness Therapy, LLC. for the commercial space located at 634 El Camino Real, Suite C, in South San Francisco for the purpose of continuing an existing commercial use. (Katie Donner, Management Analyst I)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an amendment to the Sublease Agreement with Fitness Therapy, LLC. for the commercial space located at 634 El Camino Real, Suite C, in South San Francisco for the purpose of continuing an existing commercial use.
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BACKGROUND
634 El Camino Real is a mixed-use affordable housing development constructed by Mid-Peninsula Housing Coalition (Mid-Pen) and sponsored by the former Redevelopment Agency of the City of San Francisco (RDA). To assist with making the project affordable to lower income households, the RDA contributed land and a $9.9 million loan to Mid-Pen. These were RDA assets until redevelopment was abolished by the State of California. Pursuant to the dissolution statutes, the California Department of Finance (DOF) authorized the transfer of the land and Mid-Pen's $9.9 million load to the city as housing successor. Mid-Pen, as the developer, owns the building improvements. Based on the Master Lease Agreement between Mid-Pen and the City, the City subsequently entered into sub-lease agreements and completed tenant improvements in the three commercial spaces.
In January 2019, the City Council adopted a resolution authorizing the City Manager to execute a Sublease Agreement with Fitness Therapy at 634 El Camino Real, Suite C (the "Property"). Fitness Therapy is a health and wellness company that began in Daly City and has provided group fitness classes in the Bay Area for nearly 11 years. The company works with and trains individuals to provide customized training programs and a high level of care...
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