CITY COUNCIL STAFF REPORT
DATE: March 11, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 2 TO THE LEASE WITH MIZELL CENTER, LOCATED AT 480 SOUTH SUNRISE WAY, TO EXTEND LEASE AN
ADDITIONAL TWENTY (20) YEARS
FROM: Scott C. Stiles, City Manager
BY: Housing and Community Development
SUMMARY:
The Proposed Amendment No. 2 (Amendment, Attachment A) is to extend the term of the lease agreement (Lease, Attachment B) between the City of Palm Springs and Mizell Center (Tenant), for the property located at 480 South Sunrise Avenue (Premises) for an additional twenty years.
RECOMMENDATION:
1. Approve Amendment No. 2 to the Lease with Mizell Center to extend the term an additional twenty years.
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
Mizell Center is a 501(c)3 organization (Attachment C).
BACKGROUND:
The Tenant has served the Palm Springs area since 1974, providing a variety of programs and services for the senior community. Senior services like those offered by Tenant play an important role in the lives of older adults. They help combat loneliness by providing a place for socializing and meeting new friends, benefiting the mental health of the community; they provide nutrition and wellness programs to help maintain physical health; the Meals on Wheels program helps seniors with being independent and to live at home longer; and case management services helps seniors with obtaining information and referrals for a variety of services. According to 2020 census data, approximately 36.8% of Palm Springs residents were over the age of 60.
City Council Staff Report
March 11, 2026 -- Page 2
Mizell Center Lease – Amendment No. 2
On October 13, 1988, the City entered into the Lease with Tenant for a term of twenty years for the facility at 480 South Sunrise Way. The Tenant soon embarked on an expansion of the building to accommodate the needs of the senior community.
On April 1, 1992, the City and Tenant entered into a First Amendment to the Lease to extend the term of the lease until October 12, 2028.
In 2023, Tenant completed a $500,000 renovation, funded by Measure J tax dollars, increasing the kitchen from 642 square feet to nearly 2,000 square feet, which has provided a far more productive and cost-efficient kitchen that is positioned to do more for the community going forward.
STAFF ANALYSIS:
The City and Tenant entered the original lease in 1988. At that time, Tenant commenced with an expansion of the property at 480 South Sunrise Way to add 7,000 square feet of space (Addition) to the existing facility, which included 5,029 square feet of enclosed building space, patios, service areas, walkways, landscaping, and parking facilities.
Monthly rent to be paid was $525 for land, and $3,017 for the existing improvements, for a total monthly rent of $3,542. Every five years the rent was to be increased by the Los Angeles, Riverside, Anaheim, Metropolitan Area Urban Consumers, All Items (1982- 1984=100) Consumer Price Index (CPI) over the preceding five years. CPI increases were also limited to 25% above the rent payable for the preceding five-year period.
The original Lease also included a provision that if the Addition was completed within one year of the Lease commencement, and upon City Council approval of the completed Addition, rent was to be forgiven for the term of the lease. Based on compliance with those terms, the Tenant has not been required to pay rent.
According to the terms of the Lease, Tenant is responsible for paying all utilities including gas, electricity, telephone, water, waste disposal, sewer service, and similar charges.
Tenant is also responsible for repairs and maintenance at their own cost and expense for all interior and exterior repairs, including painting, mechanical equipment, doors, windows, glass replacement, and windows forming the exterior walls. Custodial services are also to be performed by Tenant including exterior landscaping, and parking lot maintenance.
The City receives priority use of rooms, building and facilities for recreational and community services, as is similar to other lease agreements for City properties.
As noted above, the Lease was amended in April 1992 extending the term of the lease from October 2008 to October 12, 2028, for a total of 40 years. The First Amendment to the Lease did not include any adjustments to the rental amount, allowing the Tenant to occupy the building without the payment of rent. If not renewed, the current lease will expire on October 12, 2028.
City Council Staff Report
March 11, 2026 -- Page 3
Mizell Center Lease – Amendment No. 2
Tenant is requesting to continue the terms of their lease for an additional 20 years under the same terms and conditions of the existing Lease and subsequent amendment, including the waiver of the rent payment. The Tenant will continue to pay all utilities, pay for maintenance, and provide janitorial service. Changes included in the Amendment include an update to the nondiscrimination language to be consistent with the City’s current requirements, and also a Public Recognition requirement to include the City as a Platinum level donor.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to amend a lease of a City-owned property and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Public Safety and Community Services.
FISCAL IMPACT:
There is no impact to the General Fund resulting from this action. Tenant is responsible for paying gas, electricity, telephone, water, waste disposal, sewer service, and similar charges. Tenant is also responsible for repairs and maintenance of all interior and exterior repairs, including painting, mechanical equipment, doors, windows, glass replacement, and windows forming the exterior walls. Custodial services are also to be performed by Tenant including exterior landscaping, and parking lot maintenance.
REVIEWED BY:
Department Director: Jay Virata
Assistant City Manager: Flinn Fagg
City Manager: Scott Stiles
ATTACHMENTS:
A. Proposed Lease Amendment No. 2
B. Lease
C. Business Principal Disclosure