CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
11/24/2025
1 SUBJECT:
Amended and Restated Lease Agreement with the Art Guild of Pacifica for Use of the Sanchez Art Center
RECOMMENDED ACTION:
Adopt a Resolution Approving the Amended and Restated Lease Agreement between the City of Pacifica and the Art Guild of Pacifica (AGP) for continued use of portions of the Sanchez Art Center, and authorizing the City Manager to execute the Agreement.
STAFF CONTACT:
Scott Leslie, Parks, Beaches and Recreation Director
(650) 446-4683
[email protected]
BACKGROUND/DISCUSSION:
The City of Pacifica has worked in cooperation with the Art Guild of Pacifica (AGP), a nonprofit arts organization, since 1996 to support public arts programming at the Sanchez Art Center located at 1220 Linda Mar Boulevard. AGP manages and operates the West Wing and East Wing galleries, studio spaces, and former kindergarten rooms, offering exhibitions, workshops, community events, and artist programming.
Over the years, the City and AGP have executed several amendments to the original 1996 agreement. After multiple revisions, staff and the City Attorney’s Office prepared a comprehensive Amended and Restated Lease Agreement (“Agreement”) to consolidate all prior terms, modernize the language, and align with some of the City’s 2025 standards for other leased City properties.
The key terms of the proposed Agreement include:
Lease Term
• Initial Term: January 1, 2026 through December 31, 2030 (5 years) • Extension Option: One additional five-year term, exercisable by the AGP, with six months’ written notice prior to expiration of the initial term • AGP must not be in default to exercise the extension
Rent & Cost-of-Living Adjustment
• Monthly rent begins at $2,353 on January 1, 2026 (“Commencement Date”) • A 2.5% annual COLA will apply each anniversary of the Commencement Date This structure aligns with the standard increases in other City nonprofit leases Pacifica City Council 2
November 24, 2025
Utilities
Under previous agreements, utilities were billed separately, and AGP paid an additional 2.5% surcharge. The new proposed Agreement bundles all utilities, water, gas, sewer, electricity, refuse, pest control, into the Base Rent, as specified in the Amended and Restated Agreement for simplified administration.
Modernized Contract Language
The Agreement updates terminology, clarifies responsibilities, and incorporates standardized requirements for insurance, indemnification, maintenance, and use of the premises.
AGP’s operations at the Sanchez Art Center continue to provide significant community benefit by offering free and low-cost public art programming, working artist studios, education programs, and cultural events.
ALTERNATIVE ACTION:
Decline to approve the agreement and provide staff with alternative direction.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the Agreement supports the City Council’s goal of fostering a healthy and compassionate community by continuing to provide residents with access to arts and cultural experiences.
ENVIRONMENTAL REVIEW:
Approval of the proposed Agreement with Pacifica Performances is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment.
FISCAL IMPACT:
Revenue from the lease, beginning at $2,353 per month with annual 2.5% adjustments, will be received by the Parks, Beaches & Recreation Department. Consolidation of utilities into base rent simplifies cost accounting. The lease terms are consistent with budget projections for the Sanchez Art Center and do not create negative fiscal impact.
ORIGINATED BY:
Parks, Beaches & Recreation Department
ATTACHMENT LIST:
Pacifica City Council 3
November 24, 2025
Art Guild of Pacifica Amended and Restated Lease for Sanchez Art Center FINAL 1 (DOCX)
Pacifica City Council 4
November 24, 2025
RESOLUTION NO. __-2025
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE
AMENDED AND RESTATED LEASE AGREEMENT WITH THE ART GUILD OF
PACIFICA AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE AGREEMENT WHEREAS, the City of Pacifica (“City”) owns the property at 1220 Linda Mar Boulevard, commonly known as the Sanchez Art Center; and WHEREAS, the Art Guild of Pacifica (“AGP”) has operated galleries, studio spaces, and community arts programming at the Sanchez Art Center since 1996 through a series of leases and amendments; and
WHEREAS, the City and AGP seek to continue this longstanding partnership through an Amended and Restated Lease Agreement that consolidates prior agreements, modernizes language, and aligns with the City’s 2025 lease standards; and WHEREAS, the proposed agreement establishes a five-year lease term beginning January 1, 2026, with one optional five-year extension exercisable with a minimum six months’ written notice; and
WHEREAS, the agreement includes a 2.5% annual rent adjustment and consolidates utilities into the base rent for simplified administration; and WHEREAS, the City Council finds that continuation of this agreement serves the public interest by supporting community arts, cultural programming, and activation of a Cityowned facility.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pacifica hereby approves the Amended and Restated Lease Agreement between the City of Pacifica and the Art Guild of Pacifica.
BE IT FURTHER RESOLVED that the City Council authorizes the City Manager or designee to execute the agreement and take all necessary actions to implement its terms. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 24th day of November, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Pacifica City Council 5
November 24, 2025
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney Pacifica City Council 6
November 24, 2025
ATTACHMENT A