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May 5, 2026
ITEM TITLE
Lease Agreement: Approve a Lease Agreement with the Sweetwater Union High School District for a Portion of the City-Owned Building Located at 1775 Millenia Avenue Report Number: 26-0180
Location: 1775 Millenia Avenue
Department: City Manager
G.C. § 84308 Regulations Apply: No
Environmental Notice : The Project is adequately covered in a previously certified Final Second Tier Environmental Impact Report (“FEIR”) for the Millenia/Eastern Urban Center (“EUC”) Sectional Planning Area (“SPA”) Plan and Tentative Map (EIR 07-01; SCH No. 2007041074; certified by City Council Resolution No. 2009-223 on September 15, 2009).
Recommended Action
Adopt a resolution approving a lease agreement between the City of Chula Vista and the Sweetwater Union High School District for a portion of the Millenia Library Building located at 1775 Millenia Avenue.
SUMMARY
In July of 2025, the City Council took action approving a Letter of Intent with Sweetwater Union High School District for an approximate 8, 687 square foot tenancy within the Millenia Library Building to support educational programs, primarily the Launch Virtual Academy.
This item approves a fifteen (15) year lease agreement with Sweetwater Union High School District to support the educational needs of the region.
ENVIRONMENTAL REVIEW
The Project has been reviewed for compliance with the California Environmental Quality Act (“CEQA”), and it ha s been determined that the Project is adequately covered in a previously certified FEIR for th e Millenia/EUC SPA Plan and Tentative Map (EIR 07 -01; SCH No. 2007041074; certified by City Council Resolution No. 2009-223 on September 15, 2009). Therefore, no further CEQA review is required.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The Millenia Library Building located at 1775 Millenia Avenue is a 168,000 square foot Class “A” office building, which will house the 60,000 square foot City library, San Diego State University School of Nursing and Global Campus , Sweetwater Union High School District Launch Virtual Academy , and the Chula Vista Entertainment Complex, LLC.
On April 14, 2026, the City Council approved the lease agreement with the Board of Trustees of the California State University on behalf of San Diego State University for a portion of the Lower Level. The remainder of the Lower Level will be occupied by Sweetwater Union High School District (“SUHSD”) who will occupy 8,687 square feet for its Launch Virtual Academy (“LVA”) (the “SUHSD Premises”).
LVA was conceptualized in 2016 with the goal of providing a unique 21st century educational experience centered on continuous improvement. LVA is a flexible, engaging, and equitable online public school experience serving students in grades 7 through 12 that reside in San Diego County. The Academy utilizes various elements of proven educational models such as Online Collaborative Learning, Project -Problem Based Learning, Multiple Intelligence Learning Theory, Connectivism, and others and has been serving its students since 2020.
The Academy provides a safe, flexible, accessible and equitable online learning community that fosters meaningful relationships and collaboration among students, families and teachers through a purposeful intent to ignite curiosity, develop self -directed innovative thinkers and create responsible multiverse citizens. LVA expands the availability of quality secondary education in the region and youth development.
Key Terms of the Lease Agreement
1. Initial term of the lease shall be fifteen (15) years and shall commence upon the date the City has completed the tenant improvements (TIs) and delivered the space to SUHSD and SUHSD has completed installation of all systems and equipment necessary.
2. The monthly rent to be paid by SUHSD is as follows:
Period Monthly Rent
Years 1-5 $10.00
Years 6-10 $5,000.00
Years 11+ Market Rent
3. Beginning in Year 11, SUHSD will have the right to terminate the lease if City and SUHSD cannot agree on rent for premises.
4. SUHSD shall be responsible for certain insurance costs, janitorial and cleaning services, and utilities serving the SUHSD Premises.
5. City shall construct the improvements to the SUHSD Premises and SUHSD will be responsible for reimbursing City for all project costs.
6. City shall operate and maintain all common areas at its sole cost and expense.
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7. SUHSD staff members and students will have a non -exclusive right to use the parking areas serving the site at no additional cost.
Construction of tenant improvements will be performed by Swinerton Builders, the City’s general contractor performing the improvements at the Millenia Library Building, with an estimated project cost of $4,229,860.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property -related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.).
Staff is not independently aware, and has not been informed by a ny City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
Approval of this item will authorize a fifteen (15) year lease agreement with monthly rental revenue of $10.00 for the first 5 years of the lease , increasing to $5,000 per month for years 6 through 10 and then increasing to market rates for years 11 through 15 (subject to future negotiation) . The initial term is anticipated to commence in July of 2026, upon completion of tenant improvements.
Throughout the term of the lease, SUHSD shall be responsible for certain insurance costs, janitorial and cleaning services, and utilities serving the SUHSD premises. SUHSD will also reimburse the City for all costs incurred constructing the SUHSD Premises.
ONGOING FISCAL IMPACT
Approval of this item will authorize a fifteen (15) year lease agreement with monthly rental revenue of $10.00 for the first 5 years of the lease , increasing to $5,000 per month for years 6 thro ugh 10 and then increasing to market rates for years 11 through 15 (subject to future negotiation) . The initial term is anticipated to commence in July of 2026, upon completion of tenant improvements.
Throughout the term of the lease, SUHSD shall be respo nsible for certain insurance costs, janitorial and cleaning services, and utilities serving the SUHSD premises. SUHSD will also reimburse the City for all costs incurred constructing the SUHSD Premises.
The contract and budget for professional building management and maintenance services will be included in a future City Council Agenda. Once approved by City Council, these costs will be incorporated as part of the annual budget development process in future years.
ATTACHMENTS
1. SUHSD Lease Agreement
Staff Contact: Scott Dickson, Real Property Manager
Tiffany Allen, City Manager