Request for Proposals: Lease of Real Property
The San Francisco Mayor’s Office of Housing and Community Development (MOHCD), in collaboration with the Human Rights Commission (HRC) and Office of Economic and Workforce Development (OEWD), has issued a request for proposals for the lease of the commercial portions of the Fillmore Heritage Center, located at the corner of Fillmore and Eddy Streets in the Western Addition neighborhood of San Francisco.
The ground floor of the Fillmore Heritage Center offers approximately 50,000 square feet of commercial space. This includes a 28,000-square-foot restaurant/entertainment venue, a 6,300-square-foot restaurant/lounge, a gallery, screening room, and various common areas, including a large commercial lobby area that serves as the pedestrian entrance to the garage. Original tenants of the project included Yoshi’s San Francisco, a 28,000-square-foot jazz club and restaurant, and 1300 on Fillmore, a 6,300-square-foot restaurant and music lounge.
The sustained and community-driven vitality of the Fillmore remains a significant priority for the City, which funds several community organizations to provide business assistance, promotional campaigns, community events, and beautification projects. The City has active economic investments to support local businesses and the Fillmore is grounded by many active community and cultural organizations working to preserve the neighborhood's history and contribute to the area's quality of life.
The purpose of the Request for Proposals (RFP) is to balance multiple objectives informed by extensive engagement by City departments with community members and local businesses. Based on the experiences and feedback shared, the City is committed to ensuring that, through its lease, the Fillmore Heritage Center emerges as a vibrant and financially viable commercial establishment that also provides substantial and sustained community benefits to the Fillmore corridor and the Western Addition community. The City encourages proposals that present a financially viable business plan for providing community benefits and creatively incorporating performing arts, visual/media arts, food, and/or recreation/leisure activities.
MOHCD is committed to facilitating an open and competitive process for this project and all procurement opportunities.
Proposals will be accepted through 4pm, April 24, 2023.
RFP Questions and Responses
Inquiries or questions regarding the RFP and all oral notifications of an intent to request written modification or clarification of the RFP must be directed to email@example.com no later than March 17, 2023.
3/2/23: Times for group tours are provided below. If you have other tour needs, please email firstname.lastname@example.org. All tours are in-person only. We are exploring options for a video tour.
NOTE: The last tour of the space is March 30. There will be no tours between March 31 and April 24. Please plan accordingly.
Q: I didn’t find any elevation drawings of the Fillmore Center. Can you tell me what the ceiling height is for the 28,000 SF entertainment venue?
A: Neither elevation drawings nor the ceiling height of the parcel readily available.
Q: Will the Review and Evaluation Selection committee consist of stakeholders from the Fillmore community?
A: We have not yet determined the composition any entities reviewing the responses to this RFP.
Q: Will potential Respondents' submittal proposals be listed on the city government website prior to the deadline April 24, 2023?
A: Per the City’s Sunshine ordinance, responses are not publicly disclosable until the City has awarded a contract, in this case, a lease. Admin. Code § 67.24(e)(1).
Q: As a arts and cultural nonprofit organization if we are only interested in leasing or subleasing the screen room only should we submit the full proposal independent of a master lessee of the entire commercial ground space?
A: Any entity may submit a proposal related to any portion of the commercial space. The entity does not need to propose a use for the entire commercial space.
Q: [organization is] interested in being a community-based partner to a lead applicant. Can you please keep me informed if lead applicants reach out looking for community based partners? Is there another way, other than the tours, to connect with prospective lead applicants?
A: We are currently considering opportunities for connection among potential applicants and partners. Any future such opportunities will be posted on the RFP webpage as well as emailed to all tour registrants and question submitters.
Q: If we are interested in purchasing Ellis Street Walkway who do we address our Letter of Intent to?
A: The Ellis Driveway (APN 0725/026) is not part of the Fillmore Heritage RFP. Our understanding is that the Office of Community Investment and Infrastructure (“OCII”) continues to own this portion of the former Ellis Street right of way and is required under Redevelopment Dissolution Law to sell this property for fair market value as part of its state-approved Long Range Property Management Plan. OCII informs us that any sale will be accompanied by a notice of public offering, and OCII will provide such notice to SFCATS Academy.
Q: May we access the space to assess condition of the existing facilities and equipment?
A: Yes, assessments may take place during the normal tour times. If you need additional assessment time not supported by the normal tour times, please request a separate timeslot to occur no later than March 30.
Q: Are there CAD drawings of the space available?
Q: Can you provide an equipment list and specs for the AV and lighting system in the theater spaces? Is there an equipment list and specs available for the Yoshi's and 1300 Kitchen?
A: We do not have an equipment list.
Q: Is there a security system for the building, is there a contract in place?
A: Yes. The existing contract for security monitoring will remain with the City until the City determines the tenant is prepared to take it over or replace with another service.
Q: Have there been any major or minor upgrades to the suite since the building was built?
A: We are not aware of any such upgrades.
Q: Do exterior signage upgrades/ modifications need to be reviewed by the building HOA?
A: As the parcel owner, the City will remain the primary contact between the HOA and the commercial parcel. Any requests for exterior signage/upgrades will need to be routed through the City/MOHCD.
Q: Does construction within the suite need HOA approval?
A: As the parcel owner, the City will remain the primary contact between the HOA and the commercial parcel. Any requests for construction within the commercial parcel will need to be routed through the City/MOHCD.
Q: Besides the floor plans included in the RFP, do construction drawings that include architectural, mechanical, electrical and plumbing drawing sets exist?
A: MOHCD does not currently have access to construction drawings for the commercial parcel. We will update this page if construction drawings become available for review with MOHCD. DBI has a process for the public to request access to official DBI building records. Please visit https://sf.gov/requestbuildingrecords for more information.
Q: Does the current lighting meeting Title 24 requirements?
A: We do not have information about the current lighting.
Q: Is the [City] open to accepting funding from grants and sponsorships via non-profit organizations and CBOs as a source of the income in the RFP? For example, organizations partnering and collaborating for the utilization, restoration and elevation of the space(s) through ongoing programs and events held at the venues, and the income reported is from how we receive funding through grants, corporate and local sponsorships, etc.?
A: The RFP requires “competitive proposals that present a financially viable business plan” and “demonstrate the capacity to be a financially viable and sustainable commercial establishment.” While grants and sponsorships may be one component of a business plan, the source of those grants and sponsorships should be explicitly identified as part of the proposal, and the proposal should not assume any further City financial support, either direct or pass-through, beyond what is articulated in the RFP.
Q: Where can we find data of the income threshold the city is looking to reach for measures of sustainability and profitability? Are those the metrics that will be used in order to determine the success of the utilization of the space(s) in the short and long-term?
A: The City does not have specific metrics for financial viability of proposals. Metrics utilized will depend on the proposed uses and ownership structure of the proposing organization, as well as other factors.
Q: Will the City extend the deadline for responses to July 1, 2023, so that proposers can negotiate and obtain the needed commitments from certain nationally-recognized anchor tenants from the private sector?
A: We are not currently extending the deadline for responses. Any future such deadline extension will be posted on the RFP webpage as well as emailed to all tour registrants and question submitters.
Q: Will the City provide a virtual webinar for proposers to hear responses to the submitted questions, in addition to the posted, written response?
A: We will not be providing a virtual webinar to hear answers to the submitted questions.
Q: Will the City make available a list of all individuals who attended the tours of the Fillmore Heritage Center, and who submitted questions for the RFP?
A: Per the City’s Sunshine ordinance, communications between departments and persons or firms seeking contracts with the City are not publicly disclosable until the City has awarded a contract, in this case, a lease. Admin. Code § 67.24(e)(1).
Q: Are interested parties able to present separate and distinct proposals for each part of the Center, i.e. the Club and adjoining bar, the kitchen, the art gallery and gift shop, the “screening room”, the 1330 restaurant area, the upstairs lounge, the office space, and the 1300 restaurant? If so, how will “winning/best” proposals from separate entities be integrated? What is the process for ensuring successful collaboration with different parties?
A: The City will consider responses which only request to lease a portion of the Property, but Respondents are strongly encouraged to work together with partners to propose lease and use of the entire commercial parcel. The City reserves the right to take components and parties from multiple proposals to arrive at a final use and allocation of the Property. The City will do so with the intent of ensuring a successful collaboration among different parties.
Q: In the past, organizations outside of San Francisco have been approached by the City to determine their interest in becoming an anchor tenant. May we have access to the list of those organizations and individuals if the discussions are currently active, or if those parties were not pursued, why not?
A: The City is not currently pursuing anchor tenants outside of the existing RFP process. There is not a list of organizations or individuals with whom the City had communications about the property prior to the existing RFP process.
Q: Is there any current or pending litigation or legal encumbrance with the Center?
A: The City is currently defending two cases regarding the Fillmore Heritage Center. The City believes that neither case will impact the current RFP process.
- City and County of San Francisco v. Michael E. Johnson, et al.; San Francisco Superior Court No. CGC-18-568954, regarding the failure to pay the City under a loan agreement. This case is currently set for trial on July 17, 2023.
- Agonafer Shiferaw dba Fillmore Entertainment Complex/Republic of Fillmore LLC. v. City and County of San Francisco, et al.; U.S. District Court, Northern District of California, Case No: 18-CV-6830, regarding the 2017 RFP to sell the Fillmore Heritage Center. The City prevailed on the merits in the trial court and the case is currently on appeal.
Q: The property description on page 5, section C, 1 does not include the loading dock. This space (accessible on Eddy St., next to the garage entrance) is essential for access to the 1300 restaurant and the Club for performers and vendors to access. The loading dock is shared with the condos at 1310 Fillmore. Please add this into the description, or clarify if it is not part of the space. As a shared space, who will be responsible for managing access to the loading dock?
A: The loading dock area is included as part of the Commercial Parcel and is identified as such in the Parcel Maps provided as part of the RFP document. The Commercial Parcel owner/tenant is responsible for managing access to this area, within the constraints of the Reciprocal Easement and Maintenance Agreement which says in part:
- 2.7 – Parking Access Easement. Declarant grants to the Association in favor of the Residential Condominiums as the dominant tenements a nonexeclusive ingress/egress easement over the portion of the Commercial Parcel as the servient tenement that contains the visitor parking area at the ground level to provide access to and use of the two parking spaces within the portion of the Residential Parcel located on the ground level adjacent to the Commercial Parcel. The Commercial Parcel Owner shall cooperate with the Association in providing appropriate access through the entry gate that provides access from Eddy Street to the visitor parking area. The Association shall regulate the use of these two parking spaces.
Q: Page 6 and 7, Section III, outlines estimated projected City financial support and estimated Tenant costs over five years. However, it states these to be “illustrative”, with actual values to be determined based on the proposals received. Can this be better defined for proposers so we have a clear commitment for financial support to use for planning purposes? Will the actual values be determined in a collaborative process with the selected proposing organization?
A: The City does not have further information to provide at this time. The City intends to work collaboratively with any selected proposing organization toward the successful activation of the commercial parcel. Specifics will depend on the proposed uses and ownership structure of the proposing organization, as well as other factors.
Q: Will Tenant Staffing Costs subsidized by the City be directly paid to vendors, or subject to reimbursement to the lessor after payment?
A: The City intends to reimburse the lessor for such costs via the lease agreement.
Q: Page 6, section III states that “the City may consider a purchase option at the end of the term.” Can the purchase option be accelerated, say after 3 years, and what are the criteria on which the City will base a decision to provide the lessor with an option to purchase? How will the purchase price for the building be determined? What assurances does the lessor have that this will be a fair, equitable, performance-based and transparent decision?
A: The City does not have further information to provide at this time. The City intends to work collaboratively with any selected proposing organization toward the successful activation of the commercial parcel. Specifics will depend on the ownership structure of the proposing organization and other relevant factors.
Q: Will the City provide assistance to accelerate the acquisition of a liquor license, which is essential for profitability of the Club and Bar, once activated?
A: The City will cooperate with a successful proposer, as such cooperation is allowable by the California Department of Alcoholic Beverage Control, to assist in the acquisition of a liquor license.
Q: Is the City considering different uses for the African American Arts & Culture Complex on Fulton Street, such that those current tenants may need new space for their operations?
A: The City is not currently considering different uses for the African American Arts & Culture Center.
Dates are subject to change
February 28, 2023
First Tour of Fillmore Heritage Center
March 8, 2023 at 3PM
Registration required by 5pm, March 6
Second Tour of Fillmore Heritage Center
March 16, 2023 at 10AM
Registration required by 5pm, March 14
Deadline for Submission of Written Questions or Requests for Clarification
March 17, 2023
Third Tour of Fillmore Heritage Center
March 24, 2023 at 1PM
Registration required by 5pm, March 22
Final Response to Questions Posted on Website
Month 27, 2023
Fourth Tour of Fillmore Heritage Center
March 30, 2023 at 10AM
Registration required by 5pm, March 28
April 24, 2023 at 4PM