200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-4544
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
ECONOMIC DEVELOPMENT DEPARTMENT
DATE: JUNE 10, 2025
FROM: ECONOMIC DEVELOPMENT DEPARTMENT
SUBJECT: LEASE AND OPERATING AGREEMENTS BY AND BETWEEN
THE CITY OF ANAHEIM AND THE CHRYSALIS CENTER DBA
CHRYSALIS FOR THE PROPERTY LOCATED AT 290 S.
ANAHEIM BOULEVARD
ATTACHMENT (Y/N): YES ITEM # 12
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Lease Agreement, substantially in the form attached, by and between the City of Anaheim and The Chrysalis Center, dba Chrysalis, a 501(c)(3) non-profit organization, to provide office and program space at 290 S.
Anaheim Boulevard at no cost, in exchange for providing workforce development services and a commercial corridor cleaning pilot program, for an initial two-year term commencing July 1, 2025 through July 1, 2027, with an option to extend the lease for up to one additional one-year term;
2. Approve the Operating Agreement, substantially in the form attached, by and between the City of Anaheim and The Chrysalis Center, dba Chrysalis, for purposes of implementing the commercial corridor cleaning pilot program for an initial two-year term commencing July 1, 2025 through July 1, 2027, with an option to extend for up to one additional one-year term;
3. Authorize de minimis changes that do not substantially change the terms and conditions of the Lease Agreement and Operating Agreement, as determined by the City Attorney’s Office; and
4. Authorize the Economic Development Director to execute, implement, and administer the terms of the Lease Agreement and Operating Agreement.
DISCUSSION:
On June 19, 2018, the City Council approved a Memorandum of Understanding and License Agreement (Original Agreement) providing Chrysalis with office and program space at 290 S. Anaheim Boulevard to operate the Chrysalis Employment Program.
Lease and Operating Agreements with Chrysalis
June 10, 2025
Since opening, Chrysalis has delivered comprehensive job readiness services—including access to technology, resume and interview support, transportation and attire assistance, case management, and trauma-informed workshops—while also offering transitional employment opportunities through Chrysalis Enterprises. The organization partners closely with the City and agencies within the Orange County Continuum of Care to advance regional homelessness response efforts.
On June 21, 2022, the City Council approved an Amended and Restated Memorandum of Understanding and License Agreement (Amended Agreement), extending the term of Chrysalis’ occupancy through June 30, 2025. The Amended Agreement reaffirmed Chrysalis’ use of the space for employment support services, clarified maintenance and utility responsibilities, and included provisions allowing the City to install branding material on the lower-level windows of the building to promote economic development efforts in Center City.
The City and Chrysalis now wish to enter into a Lease Agreement, which will formalize Chrysalis’ occupancy of the space for an initial term of two years, through July 1, 2027, with an option to extend the lease for one additional one-year term. The lease is proposed at no cost to Chrysalis. In lieu of rent, Chrysalis has agreed to provide the following public benefits to fully offset the fair market value of the property: 1) ongoing job readiness and employment services to Anaheim residents, and 2) commercial corridor cleaning services (Clean Team).
As the Clean Team is a new public benefit offered by Chrysalis, it will operate on a pilot basis under a separate operating agreement overseen by the Public Works Department.
By implementing the service through a separate operating agreement, the City and Chrysalis will be better able to manage and adjust service delivery based upon the effectiveness of the pilot program in the field.
The Clean Team is meant to complement the comprehensive cleaning services already provided by the City through the Public Works Department and third-party contractors.
Under the operating agreement, Chrysalis will provide enhanced corridor cleaning services for eight hours every other week, with staffing comprised of one supervisor and three workforce development participants. The Chrysalis Clean Team will target high traffic business corridors in the City by providing waste removal, sidewalk sweeping, and pressure washing services. These services will be in addition to, not a supplement for, ongoing commercial corridor cleaning services currently provided by the City.
Chrysalis has extensive experience providing Clean Team services to other municipalities across Southern California. Currently, Chrysalis maintains fifteen (15) active agreements with Business Improvement Districts of various sizes throughout Los Angeles County and Orange County. See Attachment A for images of Chrysalis Clean Team operations in other jurisdictions. As part of its due diligence, City staff contacted one of these jurisdictions regarding their experience with the Chrysalis Clean Team, and received positive feedback regarding their overall quality of service and social service model.
The Clean Team partnership represents a meaningful investment in workforce development and public space enhancement. The individuals performing the corridor Lease and Operating Agreements with Chrysalis
June 10, 2025
cleaning will be participants in Chrysalis’ workforce development program, which supports people overcoming barriers to employment such as housing instability, justice system involvement, and long-term unemployment. These individuals will be supervised by Chrysalis employees to ensure the delivery of consistent, high-quality services.
Through this structure, participants gain valuable job experience, build confidence, and develop the skills necessary to transition into permanent employment. By integrating this workforce into highly visible, community-serving roles, the City is not only improving the cleanliness and vibrancy of its commercial corridors, but also advancing inclusive economic opportunity and supporting a more connected, resilient Anaheim.
City staff have made Chrysalis aware that the building is part of the former Redevelopment Agency’s Long Range Property Management Plan inventory. As such, the property will eventually be sold for development or used as part of the Civic Center Redevelopment Project in accordance with Redevelopment Dissolution Law and the Surplus Land Act. The proposed Lease Agreement provides the City access to the Leased Area as needed to conduct inspections of the property and perform any testing necessary to prepare the site for redevelopment purposes.
IMPACT ON BUDGET:
There will be no budgetary impact associated with the agreements. All costs associated with the Lease Agreement and Operating Agreement will be incurred by The Chrysalis Center.
Respectfully submitted, Concurred by,
Sergio M. Ramirez Rudy Emami
Director of Economic Development Director of Public Works Attachments:
1. Attachment A – Chrysalis Clean Team Operation
2. Lease Agreement
3. Operating Agreement
4. Original Agreement
5. Amended Agreement