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Fullerton City Council
Agenda Report
Fullerton City Council
MEETING DATE: AUGUST 6, 2024
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: DAISY PEREZ, DEPUTY CITY MANAGER
PREPARED BY: EDGAR ROSALES, SENIOR ADMINISTRATIVE ANALYST
RACHEL CASTANON, ADMINISTRATIVE ANALYST
SUBJECT: SUBLEASE AGREEMENT WITH FULLERTON COMMUNITY NURSERY SCHOOL FOR 2050 YOUTH WAY
SUMMARY
The City and the Fullerton Community Nursery School (FCNS) propose a sublease agreement for property at 2050 Youth Way. The City leases this property located in the Brea Dam Flood Control Basin from the United States Army Corp of Engineers and has subleased to FCNS since 1963 to operate an early childhood education center.
PROPOSED MOTION
Authorize City Manager to execute and administer the Fullerton Community Nursery School Sublease Agreement commencing August 1, 2024, in a form approved by City Attorney, and authorize City Manager to enact two additional 5-year terms.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Continue negotiations with FCNS for a new agreement
Direct staff to issue RFP for new property tenant
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the proposed motion.
CITY MANAGER REMARKS
The City Manager recommends approval.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The City would receive $3,150 per month commencing August 1, 2024 with payment due on the first day of each month. This amount would increase by 3% annually on the agreement commencement date anniversary. Lessee agrees to late charges at 5% of the delinquent amount if the City does not receive rent on or before the due date. This represents an increase in City revenue, however, the City would continue to bear the costs associated with building maintenance, landscaping and capital repair.
BACKGROUND AND DISCUSSION
The City of Fullerton leases property near the Brea Dam from the US Army Corps of Engineers including the property at 2050 Youth Way. The City subleased the property to the Children’s League of Fullerton in the 1960s. FCNS executed a sublease with the Children’s League of Fullerton in 1963 to use and occupy a portion of the property at 2050 Youth Way.
FCNS continued to operate on the property providing early childhood education following the 2006 Children’s League lease expiration. FCNS executed the current lease agreement with the City of Fullerton in 2009 for a five-year term and two optional five-year extensions with the final extension expiring July 31, 2024. The FCNS has expressed interest in continuing to operate at the facility and has requested a new agreement with the City of Fullerton. FCNS would pay $3,150 monthly rent with a 3% annual escalator for five years with two optional five-year extensions under the proposed agreement. The FCNS paid $2,177 in monthly rent previously.
FCNS is an accredited parent participation preschool for three- and four-year-olds operating August to May, holding classes Monday through Friday. The children participate in indoor and outdoor play, art, storytelling, music and movement. FCNS offers family events, Spanish classes and parent / child classes for children aged 16 months to 36 months twice a week.
FCNS provided childhood education services to the community, supporting local families and fostering childhood development over the past six decades. The longstanding partnership between the City and FCNS has proven mutually beneficial, contributing to the educational landscape.
Attachments:
Attachment 1 – Fullerton Community Nursery School Sublease Agreement Attachment 2 – Previous FCNS 2009 Sublease Agreement
cc: City Manager Eric J. Levitt
Fullerton Community Nursery School Agreement
August 6, 2024 - Page 2