Stamps

The assessor of the City and County of San Francisco assessed the possessory interest of real party in interest, as lessee of the land and improvements of the Sutter-Stockton garage, at $1,138,000. Upon application of lessee corporation to the supervisors of the city and county, sitting as a board of equalization, the assessment was reduced to zero. Plaintiff, as a taxpayer, sought relief by mandamus. The trial court issued peremptory writ requiring the board to restore the assessment. The board and lessee appeal.

The garage was built upon land owned by the city, and was financed by bonds issued by the corporation. By agreement between city and corporation, the latter agreed that, upon completion of construction, bids for the right to lease and operate the garage would be called for, and lease in the form attached to the agreement would be awarded to the highest bidder. The agreement required real party in interest to bid not less than 100 per cent of net proceeds. The garage was completed and the bid made. It was high, and the lease was awarded to real party in interest. The lease is for a term of 50 years. It requires lessee to pay all receipts from operation of the garage to a…