City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2024-01548 9/17/2024 Consent Item 3.
Lease Agreement with Sierra Curtis Neighborhood Association for Sierra 2 Community Center File ID: 2024-01548
Location: District 7, Represented by Councilmember Jennings Recommendation: Pass a Motion: 1) finding that it is in the best interest of the City to lease the Sierra 2 Center for the Arts and Community to the non-profit Sierra Curtis Neighborhood Association without competitive bidding as bidding is inappropriate due to special circumstances, including the long-term operation and maintenance of the facility by the Association as described below; and 2) authorizing the City Manager or the City Manager’s designee to execute a 10-year lease agreement with two five-year renewal options with the Association.
Contact: Barbara Smith, Administrative Officer, (916) 808-5762, [email protected], Department of Youth, Parks, and Community Enrichment
Presenter: None
Attachments:
1-Description/Analysis
2-Lease Agreement: Sierra Curtis Neighborhood Association for the Sierra 2 Center for the Arts and Community
Description/Analysis
Issue Detail: The Sierra 2 Community Center was originally an elementary school built in 1926. In 1979, Curtis Park residents created the Sierra Curtis Neighborhood Association (SCNA), and through their efforts, saved and renovated the school which was slated for demolition at the time. The intent of SCNA was to preserve the historic building and use it as a center for cultural, recreational and educational activities. Since 1983 SCNA has managed the Center as a community facility which offers services that now include rooms for rental activity, community classes, dance space, theater performances, a childcare center, and leased office space mostly for community-based organizations and non-profits. SCNA operates as a charitable non-profit organization. In 1997, ownership of the property was transferred from the Sacramento City Unified School District to the City in exchange for other property. The City has leased the Sierra 2 Community Center to SNCA for the past twenty-five years. The most recent lease expired on January 30, 2024.
File ID: 2024-01548 9/17/2024 Consent Item 3.
Given that SCNA was instrumental in saving the property from demolition and has maintained and occupied the building for public benefit for 45 years, since before it was owned by the City, staff recommends that City Council find that special circumstances make the use of the City’s bid procedure inappropriate, and that it is in the best interest of the City to enter into a long-term lease with SNCA at this location.
Policy Considerations: Per Sacramento City Code 3.68.110, subsection F, the City proposes a ground lease for a term of up to twenty (20) years.
Economic Impacts: Not applicable
Environmental Considerations:
California Environmental Quality Act (CEQA): This report concerns administrative activities that do not constitute a “project” as defined by the CEQA [CEQA Guidelines Sections 15061(b) (3); 15378(b)(2) (Title 14 Cal. Code Reg. 15000 et seq.)].
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Sierra 2 Community Center has been an asset to the community for the past 45 years. During this time, SCNA has provided an outstanding community resource. In addition to maintaining the facility, SCNA has made many improvements through its own initiative. Because the City charges no rent under the lease, SCNA is able to rent these spaces at a low cost to benefit the community with a focus on nonprofit and community serving organizations and programs. SCNA has proven to be an excellent partner with the City in addressing facility issues and meeting all prior lease agreement requirements promptly and consistently.
Financial Considerations: The primary means of providing operating and maintenance funds for the Sierra 2 Community Center are generated from office space lease agreements and rental permits managed through SCNA. Under the terms of this lease agreement, SCNA will not be required to pay rent. However, utilities, as well as operation and building maintenance costs for the facility will continue be the sole responsibility of SCNA.
Local Business Enterprise (LBE): Not applicable.