City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Administrative Services
Meeting Date: May 4, 2026
Report #:2509-5223
TITLE
Approval of Second Amendment to the Lease Between the City of Palo Alto and Community Skating, Inc. for the Tennis Facility at 3005 Middlefield Road, Extending the Term to January 1, 2040; CEQA Status – Categorically Exempt
RECOMMENDATION
Staff and the Policy & Services Committee recommend that Council authorize the City Manager to execute the Second Amendment (Attachment A) to the lease between the City of Palo Alto and Community Skating, Inc. for the tennis facility at 3005 Middlefield Road, extending the term until January 1, 2040.
BACKGROUND
Community Skating, Inc. (CSI) currently leases the City owned property at 3005 – 3009 Middlefield Road to operate a community ice skating and recreational tennis facility at no financial cost to the City. The original ice-skating agreement is dated January 26, 1990 and the tennis agreement was originally dated April 20, 2001. Both contracts require a $100 rent payment for the entire term and require CSI to be responsible for all operating expenses. On April 27, 2009, the City Council unanimously passed a motion to approve Amendment No. 1 to the lease for the tennis facility at 3005 Middlefield Road through April 19, 2026 and Amendment No. 2 to lease for the ice-skating facility at 3009 Middlefield Road through January 1, 2040.1
The Board of Directors of CSI wrote a letter to the City Manager, dated April 22, 2024, requesting an extension to their tennis lease (Attachment B). On March 10, 2026, the Policy and Services Committee unanimously passed a motion to recommend the City Council approve the Winter Lodge tennis contract and align its term with the Winter Lodge skating lease. As part of 1 City Council, April 27, 2009; Agenda Item #6, CMR 219:09, https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports- cmrs/year-archive/2009/cmr-219-09-winter-lodge.pdf
its review of the Nonprofit Partnership Workplan related to long-term leases, the Committee evaluated the public benefit, financial relationship, and stability of the partnership. The Committee recommended staff explore feasibility of mutually beneficial maintenance agreements and engage Winter Lodge through the lease renewal negotiations to explore opportunities to provide free access to the tennis courts when not in use.3
ANALYSIS
Staff negotiated the Second Amendment (Attachment A) to align the term of Winter Lodge tennis contract with the Winter Lodge skating lease to by extending the term to January 1, 2040. The feasibility of mutually beneficial maintenance agreements was explored, however Winter Lodge preferred to keep its own maintenance contract. The amendment will require Winter Lodge to make at minimum one court available to the public to register and use at no cost every first and third Tuesday of every month from 12:00pm to 1:30pm, commencing on September 15, 2026. The City and Winter Lodge will evaluate the demand for free public use and impact to Winter Lodge’s operation by April 1, 2027. If it is reasonably determined that public use of the courts should be adjusted, both will promptly work in good faith to make changes. Winter Lodge will also be required to provide a report related to their financials and their services, including its Form 990 as well as submit an annual report on performance measures, in alignment with the Nonprofit Partnership Workplan. All other terms and conditions of the lease will remain unchanged.
FISCAL/RESOURCE IMPACT
Winter Lodge has paid the $1,648 fee to amend the lease as required in the Fiscal Year 2026 Adopted Municipal Fee Schedule.
STAKEHOLDER ENGAGEMENT
Staff met with Winter Lodge after the March 10, 2026 Policy & Services Committee meeting to discuss and negotiate the requested lease extension.
ENVIRONMENTAL REVIEW
Extension of a lease is categorically exempt from the requirements of the California Environmental Quality Act under Section 15301, (existing facilities) of the CEQA Guidelines.
ATTACHMENTS
Attachment A: Second Amendment to Lease with CSI for the Tennis Facility Attachment B: Letter from CSI Requesting Lease Extension APPROVED BY: Lauren Lai, Administrative Services Director 3 Policy & Services, March 10, 2026; Agenda Item #1, Report #2601-5854, https://recordsportal.paloalto.gov/WebLink/DocView.aspx?id=86702&dbid=0&repo=PaloAlto&searchid=78feffcc- 6f05-44f8-9cd9-df51640bc20e&cr=1