Agenda Report
Fullerton City Council
MEETING DATE: MARCH 18, 2025
TO: CITY COUNCIL
SUBMITTED BY: DAISY PEREZ, DEPUTY CITY MANAGER
PREPARED BY: EDGAR ROSALES, SENIOR ADMINISTRATIVE ANALYST
RACHEL CASTANON, ADMINISTRATIVE ANALYST
SUBJECT: SUBLEASE AGREEMENT WITH TARA’S CHANCE FOR PROPERTY AT 219 EAST CLAIRE AVENUE
SUMMARY
Tara’s Chance, a non-profit organization operating an equestrian therapy program for special needs individuals, seeks to continue utilizing a portion of the property at 219 East Claire Avenue subject to a sublease agreement between the City and the previous property owner, Coyote Hills Ranch Inc.
PROPOSED MOTION
Authorize City Manager to execute a sublease amendment with Tara’s Chance to continue operations on the property with a March 1, 2050 termination date.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Continue to negotiate with Tara’s Chance for a new agreement Decline the agreement and seek alternative uses for the property Provide alternate direction to staff for the use of the facility 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 $200 per month for initial lease term with a 3% increase every five years. Tara’s Chace would assume responsibility for all maintenance costs. All rent or lease revenue collected would go to the Brea Dam Fund (Fund 42). This item would have no General Fund impact.
BACKGROUND AND DISCUSSION
Tara’s Chance purchased property at 219 East Claire Avenue from Coyote Hills Ranch Inc. The Army Corps of Engineers owns the land at the end of Claire Avenue, leased by the City of Fullerton. The City of Fullerton has a sublease agreement (2021) with Coyote Hills Ranch Inc. Tara’s Chance would like the City to assign that sublease to them now that they use the property and amend the rent payments, permitted use and term of the agreement. Tara’s Chance operates an equestrian therapy program for individuals with special needs at 219 East Claire Avenue in Fullerton.
Tara’s Chance purchased the property following a settlement agreement that allowed equestrian operations without a conditional use permit. Tara’s Chance discovered upon purchase a small but essential portion of the property subject to a sublease agreement between the City and the previous owner, Coyote Hills Ranch, Inc. Tara’s Chance requires this sublease, executed in 2003 and renewed in 2021, to continue operations.
The proposed sublease extension until March 1, 2050 aligns with the City lease with the Army Corps of Engineers, which expires in 2051. This would ensure Tara’s Chance could continue serving the community through its equestrian therapy programs. This agreement would also amend the 60 days’ notice termination provision to 180 days’ notice by either party or the U.S. Government. These updates provide Tara’s Chance with operational security while maintaining City oversight of the property. The revised terms reflect a reasonable approach to rental adjustments, maintenance responsibilities and termination provisions. Staff supports the updated sublease and believes it serves the best interests of both the City and Tara’s Chance by fostering a long-term, community-oriented partnership.
Attachments:
Attachment 1 – Tara’s Chance Sublease Amendment
cc: City Manager Eric J. Levitt
Tara’s Chance Sublease Agreement
March 18, 2025 - Page PAGE \* MERGEFORMAT 2