While Muni has a plan to demolish the derelict Pagoda Theater and extract the Central Subway tunneling machines from the North Beach site rather than digging up Columbus Avenue for the task, they don’t yet have a lease. As such, the Planning Commission’s scheduled vote to approve the plan has been delayed by at least a week while Muni and blighted building owner Joel Campos continue to negotiate.
Any guesses of fair market value for bare dirt leases in this neighborhood? Parking could be used as an upper limit.
“Any guesses of fair market value for bare dirt leases in this neighborhood?”
About half what the city will end up paying or giving away in favors now that they have backed themselves into a corner. They came up with a plan and publicized it before having locked down tentative lease terms? That’s nuts.
I love the phrase “blighted building owner” Nuff said.
Milkshake – Parking will be the lower limit of value since the lease will reflect the highest and best use which is certainly not parking in North Beach. This will be a pricey lease.
That does not compute Schaetzer. By the “highest and best use” logic Christmas tree lots would be paying a lease equivalent of a multi-story class-A buildings that their lots are approved for. I’m pretty sure that their profit margins cannot support that lease cost.
The lease should reflect the property as built and maintained, not as zoned. Otherwise NNN leases would be the same as class-A.
Looks like a lease has been arranged: $3.15M for 2 years or $131K per month. That seems exorbitant.
http://www.sfexaminer.com/local/transportation/2013/02/deal-reached-lease-out-north-beach-theater-central-subway-work
From June 2008 Northside SF where delays to replace the Pagoda are attributed to the Telegraph Hill Dwellers:
“Owner Joel Campos has had the space for four years, but due to the Telegraph Hill Dwellers’ repeated objections, the project continues to be stymied (he has submitted 10 different designs and concepts and counting for the building, and each one has been shot down). And so the building remains unused.”
[Editor’s Note: All too true, but in 2010 a design and the development was approved.]