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Item 10 Staff Report

Palo Alto City Council
October 20, 2025

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Item 10 Staff Report
Meeting
October 20, 2025
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Palo Alto City Council
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City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: October 20, 2025
Report #:2504-4488
TITLE
Approval of a 10 Year License Agreement with La Comida de California for Operation of a Senior Nutrition Program and Meal Service in a Portion of the City-owned Building Located at 445 Bryant Street; CEQA Status – Exempt under CEQA Guidelines sections 15301 and 15303

RECOMMENDATION
Staff recommends that the City Council approve and authorize the City Manager or their designee to execute the License Agreement with La Comida de California for part time use of a portion of the City-owned building located at 445 Bryant Street to operate a senior nutrition program and meal service.

BACKGROUND
On June 3, 2024, the City Council directed staff to operate the City-owned building at 445 Bryant Street as a community center with part-time use by La Comida de California for a senior nutrition program and to start negotiations with La Comida de California with a $1 year lease agreement and take into consideration what other senior centers agreements are and what services are being provided.1 Since then, City staff and La Comida have negotiated the proposed license agreement based on a mutual understanding of the proposed operations and requirements of both programs in the building.

The previous tenant operated a fitness club for several years and the premises required a number of repairs and improvements to operate a community center and the La Comida program. The renovations will occur in two phases to allow La Comida to commence its operates as soon as possible. CJW Architecture provided plans for the first phase of the project, which is to renovate the portion of the first floor to be used by La Comida and some additional improvements to the second floor to make the space usable for Community Services Department programing/use. Multiple renderings were considered to determine the 1 City Council, June 3, 2024; Agenda Item # 18; SR # 2405-2978, https://portal.laserfiche.com/Portal/DocView.aspx?id=73658&repo=r-704298fc&searchid=7fa012b3-1e81-4dce- 8d34-791eeb160399

appropriate level of improvements while balancing costs and partnership needs. Below is a list of items that have been or will be completed during the first phase. Inspection and maintenance of elevator, fire alarm, and fire sprinklers Flooring
Painting
Sink
Cabinetry
Mechanical, electrical, and plumbing upgrades
Sound proofing
HVAC system replacement
Window coverings
Upgrades needed for code compliance
The first phase of the project is expected to be complete and the premises is expected to be available for La Comida by January 1, 2026.

ANALYSIS
This partnership agreement represents a major milestone in establishing a permanent home for La Comida’s downtown senior nutrition services to the community, and completion of a City Council 2024 priority objective.

Over the past year, City staff and La Comida have been corresponding regularly to understand proposed operations and requirements of both uses in the building and have drafted the license agreement in Attachment A. Below is a summary of terms recommended for approval. Premises: Nonexclusive right to use a portion of the first floor of the building consisting of approximately 1,602 square feet
Shared Areas: restrooms, corridors, and areas for ingress and egress Term: ten years, expected to commence on January 1, 2026, plus a five-year option upon mutual agreement
Use: operate at senior nutrition program and meal service, Monday through Friday, from 10:00 AM to 2:00 PM
Fees: $1.00 per calendar year, plus reimbursement of share of operating costs fixed at $1,300 per month (subject to review every two years) and a one-time contribution of $50,000 (to be made in 2 equal installments within 6 and 12 months after the effective date) from La Comida for costs related to specific improvements being made to meet their program requirements
Furniture: Provided by the City and shared with La Comida Maintenance: City will maintain the building, subject to La Comida’s responsibility to empty all trash daily and return the premises, including the shared areas and furniture, daily after their use in the same or better condition
Annual Reporting: La Comida to provide annual budget, annual report on operation of the program in Form 990, and semiannual activity reports relating to the scope of the program services

FISCAL/RESOURCE IMPACT
The total cost for the first phase of the project is estimated at $1.1 million. As future improvements for the remainder of the project have yet to be finalized, those additional costs are currently unknown. As noted in the Fiscal Year 2026 Adopted Capital Budget, additional funding was added in the 2025 – 2029 CIP (Project Number: PE-13001) for HVAC electrification to upgrade the building. The cost of the HVAC system will be offset by funding from the Community Center Impact Fee Fund. Building operations and maintenance/programming revenue is included as part of the Fiscal Year 2026 Adopted Operating Budget for the Community Services Department.

STAKEHOLDER ENGAGEMENT
Staff have been meeting regularly with La Comida to discuss and negotiate the license terms. In addition, Staff from the Administrative Services Department, City Attorney’s Office, City Manager’s Office, Community Services Department, Planning and Development Services, and Public Works Department have been meeting regularly to advance this project. The premises are tentatively expected to be made available to La Comida by January 1, 2026. Community Services Department staff will continue to work with Planning and Development Services and Public Works to activate the remainder of the building for community center use, including completion of the shared space. They will keep La Comida informed and notify them of any potential disruptions to their business.

ENVIRONMENTAL REVIEW
Council action on this item is exempt from CEQA review under section 15301 of the CEQA Guidelines because the license agreement with La Comida involves the operation, repair, maintenance, permitting, or minor alteration to an existing facility with negligible or no expansion as well as section 15303 of the CEQA Guidelines because the license agreement also involves the installation of small new equipment and facilities in small structures and the conversion of existing small structures from one use to another where only minor modifications are made.

ATTACHMENTS
Attachment A: La Comida License Agreement
APPROVED BY: Lauren Lai, Administrative Services Director

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