City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-01076 5/27/2025 Item 7.
Agreement: Sublease Agreement between the City of Sacramento, YMCA of Superior California and Capitol Area Development Authority for Music Hub at 1515 8th Street File ID: 2025-01076
Location: District 4
Recommendation: Adopt a Resolution authorizing the Interim City Manager or designee to 1) execute the sublease agreement for 1515 8th Street with YMCA of Superior California and the Capitol Area Development Authority; 2) establish the 1515 8th Street Lease (I17001200) as a new Multi-Year Operating Project for space management; and 3) transfer $250,000 (Innovation and Growth Fund, Fund 2031) from the expenditure budget in the Creative Edge MYOP (I02181100) to the expenditure budget in the 1515 8th Street Lease MYOP (I17001200).
Contact: Megan Van Voorhis, Director, (916) 808-5979, [email protected]; Jason Jong, Cultural and Creative Economy Manager, (916) 808-5105, [email protected]; Melissa Cirone, Arts Program Manager, (916) 808-3983, [email protected]; Office of Arts and Culture, Convention & Cultural Services Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
3-Sublease between the City of Sacramento, YMCA of Superior California and CADA Description/Analysis
Issue Detail: In late 2023, the Capitol Area Development Authority (CADA) approached the City of Sacramento’s Department of Convention & Cultural Services about a property that would become available within their portfolio and gauge the interest and capacity of the department to activate the space on a temporary or long-term basis with an arts focus. The project appealed to the department because space remains a pressing issue for the creative community, and because properties of this nature located on the grid are extremely hard to come by.
After engaging in a series of conversations with CADA about the property - the former Capitol Athletic
File ID: 2025-01076 5/27/2025 Item 7.
Club - the department determined that the full site was too much to take on at the time, and that certain elements of the athletic complex (such as the hot tubs and pool) would cost too much to transform. CADA brought the YMCA of Superior California (YMCA) into conversation and the team determined that a shared use of the site was a possibility and that a partnership held potential to both solve problems facing the creative community and create a platform for advancing shared goals of the YMCA, CADA and the City of Sacramento. To that end, the YMCA took up a lease to the whole building (approximately 52,000 square feet), with the intent that the City of Sacramento Department of Convention & Cultural Services would become a subtenant of the YMCA for a smaller portion of the space - just over 9,000 square feet - that is accessible via its own entrance on O Street.
The issue of access to affordable creative space in Sacramento is well documented. Creative Edge:
Sacramento’s Arts, Culture & Creative Economy plan spells out the need to identify and develop opportunities to create spaces that support Sacramento’s creative industries, such as makers’ spaces, co-working spaces, production facilities, rehearsal spaces, and performance spaces. And more recent research, such as Sprout to Growth: Potential Pathways for Growing Sacramento’s Creative Economy, reiterates the lack of stability and security facing the creative community when it comes to space. Vulnerable to rising rents and displacement, this lack of accessible space disproportionately impacts emerging artists, small cultural organizations, and creatives from marginalized communities who have fewer resources to secure and retain space.
The 2023 Sacramento Music Census report further illustrates the under-supported nature of Sacramento’s music scene, with many professionals citing a lack of appropriate venues and resources for musician development. A lack of all ages venues limits the availability of spaces for under-age youth to play and make connections. And venues are often reluctant to bring in bands that might attract smaller crowds due to the financial impact of those decisions. Access to infrastructure for making music can also be challenging, given the costly nature of the equipment required, so musician’s makerspaces can bridge the gap.
In evaluating the most viable creative uses of the space, music rose to the top. Further, music’s well- documented connection to mental health and social development lends itself well to programming in partnership with the YMCA.
With that in mind, the City’s Department of Convention & Cultural Services and CADA approached MusicLandria - a 501c3 nonprofit with a history and mission of supporting musicians in Sacramento - to pilot some programming in the space as part of a temporary art exhibition called Come to Your Senses. MusicLandria created a musician’s maker space as part of the temporary art exhibition and programmed concerts in the space as well. Since the Come to Your Senses exhibit closed, MusicLandria has continued to occupy the space to pilot programming and keep the space active at CADA’s request. The music industry’s response to the space has been favorable.
Moving forward, the vision for the space is to create a vibrant hub for music and musician
File ID: 2025-01076 5/27/2025 Item 7.
development, inviting folks from every stage of their life and careers to participate in programming there - anchored by programming from MusicLandria and other music partners that the City will seek out. The space will also prioritize cross-disciplinary programming focused on music and healing.
Finally, we anticipate the space will serve as a center for community convenings within the creative sector.
The Department of Convention & Cultural Services is seeking authority to enter into the attached sublease with the YMCA of Superior California and CADA to advance the above vision.
Policy Considerations: This partnership is in alignment with the goals of Creative Edge:
Sacramento’s Arts, Culture & Creative Economy Plan, specifically goal 3, strategy 1, which is to develop and support strategic opportunities to grow Sacramento’s creative sector. One tactical element of that strategy (3.1.8) is focused on creative industries space development: “Identify and develop opportunities to create spaces that support Sacramento’s creative industries, such as makers’ spaces, co-working spaces, production facilities, and artists’ live-work projects…Seek opportunities to partner with and support Capitol Area Development Authority arts and creative economy projects.” It is also aligned with goal 4, strategy 1, which is to invest in funding and services for individual artists to improve their capacity for artistic and career success and their ability to remain in Sacramento. One tactical element of that strategy (4.1.6) is to “Explore development of affordable artists’ live-work and other artist-centered spaces.”
This partnership is also aligned with LUP-9 of the Land Use and Planning Element of the City’s 2040 General Plan, which encourages the development of cultural and entertainment centers, assembly facilities and event centers, and artist enclaves/live work studios.
Economic Impacts: The new facility is anticipated to generate positive economic activity by supporting local musicians and creative entrepreneurs. Programming will include music residencies, educational workshops, ticketed events, and informal meetups-helping to retain and grow local talent, activate the surrounding area, and increase foot traffic to adjacent businesses.
Environmental Considerations: The proposed lease involves the adaptive reuse of an existing building and does not constitute a project under the California Environmental Quality Act (CEQA).
Sustainability: No additional sustainability elements are associated with this lease.
Commission/Committee Action: None.
Rationale for Recommendation: The proposed lease allows the City to establish a dedicated music development hub with minimal upfront cost, leveraging an existing facility in partnership with a community-serving organization and another public sector partner. It addresses an urgent and well- documented need for rehearsal and production space in Sacramento and provides a stable home for
File ID: 2025-01076 5/27/2025 Item 7.
community-focused music activities.
This opportunity also complements other initiatives the City has taken on to support the music cluster arising out of the findings of the Sacramento Music Census and Arts and Entertainment Regulatory Review. This would include independent venue grants, the introduction of the limited entertainment permit and other regulatory reforms, a revenue development program for musicians, and investment in arts journalism through Solving Sacramento, which has yielded a new video series titled Hangout Gigs.
Financial Considerations: The estimated annual costs for this space is expected to be between $55,000 and $58,000. These costs include a base rent of $1,500 per month, 10% of all gross revenues annually (less the base rent paid), and 20% of operating expenses and utilities of the full property. The City had previously allocated funding for a vacant site activation under the Creative Edge MYOP (I02181100). There will be a transfer of $250,000 from the Creative Edge MYOP to the 1515 8th Street Lease MYOP to cover the annual costs of the space. Funding received from rentals, ticket fees, programming revenue, and other strategic partnerships at this site will help offset the annual costs. Staff time associated with the space will be covered through the Office of Arts and Culture operating budget.
The term begins on the commencement date and ends on July 8, 2030, unless terminated earlier.
The State and CADA have the right to terminate the site lease upon 60 days notice. The YMCA and the City of Sacramento have the right to terminate upon 90 days notice.
Local Business Enterprise (LBE): Not Applicable
RESOLUTION NO. 2025-XXXX
Adopted by the Sacramento City Council
Agreement: Sublease Agreement between The City of Sacramento, YMCA of Superior California and Capitol Area Development Authority for a Music Hub at 1515 8th Street
BACKGROUND
A. In late 2023, the Capitol Area Development Authority (CADA) approached the City of Sacramento’s Department of Convention & Cultural Services (CCS) about a property that would become available within their portfolio and to gauge interest and capacity of the department to activate the space on a temporary or long-term basis with an arts focus.
B. After engaging in a series of conversations with CADA about the property, CCS determined the full site was too much to take on and that certain elements of the complex would cost too much to transform.
C. CADA brought the YMCA of Superior California (YMCA) into conversation and the team determined that a shared use of the site was a possibility.
D. YMCA took up a lease to the whole building, with the intent that CCS would become a subtenant for a smaller portion of the space (just over 9,000 square feet).
E. The vision for CCS subtenancy is to create a vibrant hub for music and musician development, inviting folks from every stage of their life and careers to participate in programming there. The space will also prioritize cross-disciplinary programming focused on music and healing. Finally, we anticipate the space will serve as a center for community convenings within the creative sector.
F. CCS is seeking authority to enter into a sublease with the YMCA of Superior California and CADA to advance the above vision.
G. CCS will pay a base rent of $1,500 per month, 10% of all gross revenues annually (less the base rent paid), and 20% of operating expenses and utilities.
CCS will transfer $250,000 from the Creative Edge MYOP to the 1515 8th Street Lease MYOP to cover the annual costs of the space. CCS expects to recover costs through rentals, ticket fees, programming revenue and other strategic partnerships.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or their designee is authorized to execute the sublease agreement for 1515 8th Street with YMCA of Superior California and the Capitol Area Development Authority.
Section 2. The 1515 8th Street Lease MYOP (I17001200) is established.
Section 3. The City Manager or their designee is authorized to transfer $250,000 (Innovation and Growth Fund, Fund 2031) from the expenditure budget in the Creative Edge MYOP (I02181100) to the expenditure budget in the 1515 8th Street Lease MYOP (I17001200).
1 4937-8671-9543, v. 1
SUBLEASE AGREEMENT
This Sublease Agreement (this “Agreement”) is dated for reference purposes as of May 27 , 2025, and is deemed effective as of the date the last of the parties to sign delivers a fully executed counterpart to the other (the “Effective Date”), and is made by and between THE CITY OF SACRAMENTO, a Charter City and municipal corporation (“Subtenant”), YOUNG MEN’S CHRISTIAN ASSOCIATION OF SUPERIOR CALIFORNIA (YMCA) (“Sublandlord”), and CAPITOL AREA DEVELOPMENT AUTHORITY, a California joint powers agency (“Master Landlord”), with reference to the following facts:
RECITALS
WHEREAS, Sublandlord is the tenant under that certain CADA COMMERCIAL LEASE (the "Master Lease") whereby Sublandlord leases from Master Landlord that certain premises located at 1515 8th Street, Sacramento, California 95814, as further described in Exhibit A attached hereto and made a part hereof (the "Master Premises") consisting of approximately 52,000 square feet, together w ith improvements, fixtures, machinery, and equipment contained therein. A copy of the Master Lease is attached hereto as Exhibit C attached hereto and made a part hereof . The parties confirm that they have reviewed the Master Lease and that this Sublease Agreement does not contain any provisions explicitly prohibited by the Master Lease. All terms with initial capitalization used, but not defined, in this Agreement, shall be deemed to have the meanings set forth in the Master Lease.
WHEREAS, Master Landlord holds it interest in the Master Premises pursuant to that certain Lease (Residential Site 4C) dated June 18, 1982, and amended on or about August 31, 1982 (the “ Site Lease”), by and between Master Landlord and the State of California acting through the Directors of the Department of General Services (the “State”). The Master Lease is effectively a sublease under the Site Lease.
WHEREAS, Subtenant desires to sublease a portion of the Master Premises from Sublandlord and Sublandlord desires to sublease a portion of the Master Premises to Subtenant, containing approximately 9,292 square feet of improvements, as further described and/or depicted in Exhibit B attached hereto and made a part hereof (the “Subleased Premises”).
NOW THEREFORE, in consideration of the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
AGREEMENT
1. Sublease.
1.1 Sublandlord does hereby sublease to Subtenant the Subleased Premises (herein, the “Sublease”) on the terms and conditions set forth herein and, except as otherwise set forth herein to the contrary (e.g., rent, term, use, etc.), on all of the same terms and conditions as the Master Lease. Subtenant shall assume all responsibilities of Sublandlord under the Master Lease as it relates to the Subleased Premises.
1.2 All of the terms, covenants, conditions and provisions in the Master Lease, including , without limitation, specifically the provisions regarding Sublandlord’s default and Landlord's remedies with respect thereto, insurance obligations of Subtenant, alterations and improvements of the Subleased Premises, maintenance of the Subleased Premises, waiver of subrogation, liability for Subtenant damages, and compliance with all applicable laws are hereby incorporated in, and made a part of this Agreement, with references to LANDLORD therein to mean Sublandlord herein, and references to TENANT therein to
2 4937-8671-9543, v. 1
mean Subtenant herein. Notwithstanding the foregoing, Rent to be paid by Subtenant under this Agreement shall be as set forth in Section 6 hereof, and not the provisions of the Master Lease.
2. Term. This Agreement and the term of the Sublease (the “Term”) shall commence on June 1, 2025 (the “Commencement Date”) and shall continue in effect until the earlier to occur of (a) the expiration of termination of the Master Lease, or (b) July 8, 2030 (the “Expiration Date”), unless extended or earlier terminated as provided herein. The parties hereto acknowledge that the State and the Master Landlord have the right to terminate the Site Lease at any time upon sixty (60) days’ notice. Subtenant shall have no rights or option to extend the Term of the Sublease; any such right or option shall be subject to mutual agreement by Sublandlord in Sublandlord’s sole discretion; and Sublandlord shall have no duty or obligation to extend the term of the Master Lease. Notwithstanding anything herein to the contrary, either Subtenant or Sublandlord may terminate this Sublease at any time upon ninety (90) days’ prior written notice to the other.
3. Insurance. Sublandlord recognizes that Subtenant is a self -insured public entity. As such, Subtenant shall have the right to satisfy the insurance requirements set forth in Section 12 of the Master Lease through a program of self-insurance, provided that Subtenant at all times provides and maintains in effect a letter of self -insurance addressed to Sublandlord and fully complying with all insurance requirements set forth in the Master Lease.
4. Permitted Uses; Maintenance and Repairs.
4.1 Permitted Uses. Subtenant may utilize the Subleased Premises only for the following uses and purposes (“Permitted Uses”): (a) to carry out music-related programming such as concerts and events, workshops and classes, as well as music-industry supporting activities such as providing rehearsal space, recording space, music maker spaces, professional education, and music-industry gatherings, including renting out the space to other parties to support those functions; (b) other arts- and culture-related classes, workshops and programs; (c) to rent space out to other parties for additional arts - and culture -related programming, such as dance, theatre, film, and poetry; (d) creative industries convenings; and (e) Subtenant may also rent space for other community-oriented events. Any uses of the Subleased Premises other than Permitted Uses shall require Sublandlord’s prior written consent, not to be unreasonably withheld. The parties acknowledge that the Permitted Uses are intended to be the acts and uses described in Section 6.1 of the Master Lease, and Master Landlord hereby consents to same.
4.2 Sound; Prohibited Uses. Notwithstanding anything to the contrary herein, Subtenant may not use the Subleased Premises for any of the following purposes:
4.2.1 Subtenant shall take reasonable measures to mitigate excessive noise, vibrations, and other disruptions to any portions of the Master Premises outside of the Subleased Premises; provided, however, that this provision shall not generally prohibit Subtenant from conducting the programming permitted in Section 4.1, including, without limitation, music -related programming, concerts, and performances with amplified sound, subject to Section 4.2.2 hereof.
4.2.2 Any use or programm ing in violation of applicable local, State , or Federal laws, regulations, or ordinances.
4.3 Maintenance and Repairs. Notwithstanding anything to the contrary in the Master Lease, except to the extent that the same are the obligation of Master Landlord under the Master Lease (in which case Sublandlord shall use good faith to cause Master Landlord to repair and maintain the same, but shall have no obligation itself to maintain and repair the same), Subtenant shall be solely and fully responsible at Subtenant’s cost and expense to keep and maintain the entirety of the Subleased Premises at all times in
3 4937-8671-9543, v. 1
good, clean and operative condition and repair, including without limitation all building systems, HVAC, structures, walls, floor slabs, floors and floor co verings, plumbing, windows and window frames and window coverings, ceiling and ceiling tiles, doors and door frames . Under no circumstances shall Sublandlord have any duty or obligation to maintain, repair, improve, or alter the Subleased Premises for or on behalf of Subtenant, nor any obligation to do or perform any of the ‘Landlord’s Work’ as described in Section 1.2 of the Master Lease; provided that Sublandlord will use good faith to cause Master Landlord to make any repairs and maintenance which are the obligation of Master Landlord under the Master Lease.
4.4 Common Areas; Master Premises. Subtenant shall at no time have any right to use or make use of or have access to any portion of the Master Premises outside of the Subleased Premises, including without limitation what might otherwise be considered common areas, recreational facilities, or community space. Subtenant’s sole points of access to the Subleased Premises shall be through public streets and sidewalks, except in cases of emergency.
4.5 Parking. Subtenant shall not have any rights whatsoever to use any of the parking spaces on the Master Premises , except as follows: With the prior approval of Sublandlord, Subtenant and/or its licensees or vendors may from time to time use one parkin g space, if open and available, on a short -term basis for loading and unloading of items from and to the Subleased Premises. Except as noted above, Subtenant shall arrange for its own parking needs outside of the Master Premises, including street parking.
Notwithstanding Sections 4.4 and 4.5, Subtenant may utilize the alley which intersects P Street for loading and unloading, subject to compliance with all applicable laws. Sublandlord makes no (and disclaims any) representations as to whether the alley may be used for loading and unloading.
4.6 Alterations. Subtenant shall make no alterations, improvements or changes to the Subleased Premises without (a) the prior written consent of Sublandlord, which Sublandlord may withhold in its sole discretion, an d (b) full compliance with provisions regulating alterations and improvements of the Master Premises as set forth in the Master Lease, including without limitation Section 10 thereof.
4.7 Rentals and Licenses. Subtenant may grant rentals and licenses to third parties from time to time for portions of the Subleased Premises for programming allowed within the Permitted Uses , provided that any renter or licensee (i) shall not become a tenant or subtenant of the Subleased Premises or gain any real property i nterests, and (ii) must comply with the provisions of this Agreement including, without limitation, only utilizing the Subleased Premises for Permitted Uses. Any such renter or licensee of Subtenant may not further rent, license, or sublease the Subleased Premises, but may rent out space as specified in the Permitted Uses. This Section 4.7 does not apply to subleases or assignments, which are subject to Section 23 hereof.
5. Rent and Utilities.
5.1 Rent.
5.1.1 Base Rent. Subtenant shall pay to Sublandlord a base rent in the amount of One Thousand Five Hundred Dollars ($1,500.00) per month (“Base Rent”), which Base Rent shall be due and payable to Sublandlord without notice or invoice on or before the first (1 st) day of each month during the Term.
5.1.2 Gross Revenues. In addition to Base Rent, Subtenant shall pay to Sublandlord on an annual basis on or before the Payment Dates set forth below an amount equal to the sum of the following (“Revenue Share”): ten percent (10.00%) of all Gross Revenues for any calendar year LESS all Base Rent actually paid by Subtenant to Sublandlord for such calendar year. By way of example, if ten percent (10.00%) of all Gross Revenues for a particular calendar year was $20,000, and Subtenant had theretofore
4 4937-8671-9543, v. 1
paid to Sublandlord $18,000 in Base Rent, then the total amount due for Revenue Share would be $2,000.
For purposes hereof:
(a) “Gross Revenues” is defined as the total gross revenue collected by Subtenant from any persons or parties utilizing the Subleased Premises , without discount, deduction or offset for any costs or expenses in connection with the Subleased Premises , or any other sums payable by Subtenant to Sublandlord under the Sublease. Subtenant shall provide Sublandlord with a detailed written accounting along with payment of each Revenue Share by the Payment Date in the schedule below showing how Subtenant calculated Gross Revenue (“Gross Revenue Statement”). If Subtenant makes any sublease of the Leased Premises or any rental or license agreement for use of the Subleased Premises for programming, then (a) Gross Revenues shall include any sub-sublease rent, licensee fees, rental fees, or other payment from such sub-subtenant, renter or licensee paid to Subtenant, and (b) Gross Revenues shall not include any income received by such sub -subtenant, renter or licensee in connection with its programming activities at the Subleased Premises unless Subtenant is entitled to share in such revenues and actually receives the s ame. Each Revenue Share p ayment shall be based on the following annual rent schedule:
Lease Year Payment Due
Commencement Date - December 31, 2025 March 1, 2026
January 1, 2026 - December 31, 2026 March 1, 2027
January 1, 2027 - December 31, 2027 March 1, 2028
January 1, 2028 - December 31, 2028 March 1, 2029
January 1, 2029 - December 31, 2029 March 1, 2030
January 1, 2030 - July 8, 2030 September 9, 2030
(b) Sublandlord shall have the right to audit any Gross Revenue Statement and all books and records of Subtenant supporting, referenced in, and/or with respect to same. If any such audit shall reveal that Subtenant underpaid Gross Revenues for any given year, then Subtenant shall pay the difference to Sublandlord within thirty (30) calendar days after conclusion of the audit. If any such audit reveals that Subtenant underpaid Gross Revenues by more than five percent (5.0%), then Subtenant shall reimburse Sublandlord for the entire cost of the audit.
5.1.3 Operating Expenses. In addition to all other charges and expenses required by this Agreement, Subtenant shall also pay and reimburse to Sublandlord an amount equal to twenty percent (20.00%) of all Operating Expenses charged from time to time by Master Landlord to Sublandlord under Section 3.2 of the Master Lease (the “Op Ex Share”), excluding (i) charges related to maintenance and repair of areas of the Master Premises outside of the Subleased Premises, and (ii) charges for Utilities used at areas of the Master Premises outside of the Subleased Premises. Sublandlord shall bill and invoice Subtenant for its Op Ex Share not more often than monthly, which invoice shall include supporting documentation showing amounts charged to Sublandlord by Master Landlord, and which invoice shall be paid by Subtenant to Sublandlord within twenty (20) days after receipt. The parties understand that the Op Ex Share is intended to be only a pass-through of a portion of the Operating Expenses charged to Sublandlord by Master Landlord.
5.2 Utilities. The parties acknowledge that utilities to the Subleased Premises are not separately metered. Each month, Subtenant shall pay and reimburse to Sublandlord twenty percent (20.00%) of the cost of all Utilities used and utilized at the Master Premises and paid for by Sublandlord at and with respect to the Master Premises (“Utility Share”). As soon as reasonably practicable after the end of each calendar month, Sublandlord shall prepare and send to Subtenant an invoice for Subtenant’s Utility Share, including documentation from utility providers supporting the invoiced amount upon
5 4937-8671-9543, v. 1
request from Subtenant. Subtenant shall pay such invoices for Subtenant’s Utility Share within twenty (20) days of receipt. For purposes hereof, “Utilities” shall mean the following services: gas, electricity, water and sewage, trash and recycling, alarm service, and internet. On an annual basis, Sublandlord and Subtenant shall meet and confer to discuss whether the 20% figure for Utility Share noted above is a reasonable approximation of the Utilities utilized or burdened by Subtenant’s activities at the Subleased Premises, or whether the Utility Share should be reasonably and equitably adjusted.
5.3 Sublease Rent Default. All Base Rent, Revenue Share, Utility Share, and any other amount due do Sublandlord by Subtenant hereunder shall be referred to as “Rent”. If Subtenant shall Default in the payment of any Rent or other sums due under this Agreement pursuant to the provisions of Section 18.1 of the Master Lease, then Sublandlord shall have all rights and remedies in connection with such Default as set forth in Section 18.2 of the Master Lease. Additionally, (a) a late fee of five percent (5%) of any Rent amount will be charged if said Rent is not received within five (5) days of the due date, whether or not a Default has yet occurred, and (b) in addition to (and not in lieu of) such late fee, interest on any unpaid Rent amount will accrue and be due and payable by Subtenant to Sublandlord at the rate of one percent (1.00%) per month starting from the sixth (6th) day after the due date and continuing until fully paid.
6. Consent of Landlord. This Agreement is contingent on the execution of a Consent to Sublease whereby the Master Landlord consents to the terms of the Agreement and accepts Subtenant as the subtenant who is bound by the terms of the Master Lease for the Term of the Agreement. This Agreement adheres to all assignment and subletting restrictions outlined in the Master Lease, and Subtenant agrees to comply with any such restrictions. By executing the Consent at the end of this Agreement, Master Landlord does hereby consent to this Sublease and all of the terms and conditions set forth herein.
7. Security Deposit. Upon execution of this Agreement, Subtenant shall deposit with Sublandlord a security deposit in the amount of $5,000 (the "Security Deposit"). Sublandlord may retain all or a portion of the Security Deposit to remedy any breach of this Agreement by Subtenant, including but not limited to:
(a) default in payment of rent or other charges, (b) damage to the Subleased Premises beyond normal wear and tear, (c) failure to return the Subleased Premises in a clean condition at the end of the Term, or (d) any other breach of the terms and conditions of this Agreement. Sublandlord shall provide an itemized list of any deductions from the Security Deposit within thirty (30) days after the termin ation of this Agreement and Subtenant’s full and final vacation of the Subleased Premises. Any portion of the Security Deposit not used to remedy breaches shall be returned to Subtenant within forty-five (45) days after the termination of this Agreement. If Sublandlord uses or applies any portion of the security deposit during the Term of this Agreement, then Subtenant shall, upon demand, restore the security deposit to its original amount.
8. Delivery of Subleased Premises. Subtenant has fully inspected and examined the Subleased Premises, is aware of the physical condition, and agrees to take the same "AS IS, WHERE-IS, WITH ALL FAULTS" in its then current condition as of the Commencement Date, with the understanding that there shall be no obligation on the part of Sublandlord to incur any expense whatsoever in connection with the preparation of the Subleased Premises for Subtenant's occupancy. Neither Sublandlord nor Sublandlord's agents or other representatives have made, nor has Subtenant relied upon, any representations, warranties, or promises, express or implied, with respect to the Subleased Premises or the equipment and improvements situated on the Subleased Premises , and Sublandlord does hereby disclaim any such representations, warranties, or promises, express or implied.
9. Compliance with Master Lease.
6 4937-8671-9543, v. 1
9.1 Subtenant agrees to be bound by, abide by, respect, duly fully keep, observe and perform and not violate the terms of both this Agreement and each and every term, covenant, provision and condition of the Master Lease incorporated herein, including without limitation all those that relate to the Subleased Premises.
9.2 If, for any reason whatsoever, the Master Lease is termina ted as to the entire Master Premises or the Subleased Premises by the Master Landlord, the State, or otherwise, or in the event of any damage, destruction or condemnation with respect to all or part of the Master Premises, this Agreement shall thereupon be terminated. In such an event Sublandlord shall not be liable to Subtenant for any loss, cost, or expense incurred by Subtenant, unless said termination shall have been effected because of the breach or default of Sublandlord under the Master Lease.
9.3 Sublandlord agrees to forward to Subtenant, upon receipt thereof by Sublandlord, a copy of each notice of default received by Sublandlord from Master Landlord in its capacity as tenant under the Master Lease. Subtenant agrees to forward to Sublandlord, upon receipt thereof, copies of any notices received by Subtenant from Master Landlord or from any governmental authorities with respect to the Master Premises or the Subleased Premises.
10. Sublandlord Right to Cure. If Subtenant shall breach, default, or fail to perform any of the provisions of this Agreement, the Sublease, or the Master Lease, and if Subtenant shall not have commenced diligently to cure such default within five (5) days after notice thereof to Subtenant, then Sublandlord may, in addition to (and without limitation of) any other remedy provided in this Agreement, cure such default.
The cost of cure by Sublandlord with interest at seven percent (7%) interest rate from the date incurred and the cost shall be payable by Subt enant within ten (10) days following written demand by Sublandlord. In the event Subtenant fails to pay the same, Sublandlord may recover such costs, including interest, in an action brought against Subtenant.
11. Sublandlord Representation. Sublandlord r epresents that it is the holder of the interest of the tenant under the Master Lease, and that the Master Lease is in full force and effect.
12. Subtenant Indemnity. Subtenant agrees to indemnify Sublandlord and hold Sublandlord harmless from all losses, damages, liabilities and expenses (including, without limitation, reasonable attorneys' fees and expenses) that Sublandlord may incur, or for which Sublandlord may be liable, to Master Landlord, arising from the acts or omissions of Subtenant, Subtenant's agents, contractors, employees, invitees, or licensees, that are the subject matter of any indemnity or hold harmless of Sublandlord to Master Landlord under the Master Lease.
13. Subtenant Indemnification & Attorney’s Fees. Subtenant hereby indemnifies and agrees to hold Sublandlord harmless from and against any and all claims (including, without limitation, claims of Master Landlord against Sublandlord), losses or damages, including, without limitation reasonable attorneys' fees and disbursements, resulting from or arising out of (a) Subtenant's failure to perform any of the terms, covenants, conditions or agreements contained in or incorporated into this Agreement which, by the terms of this Agreement (or such consents), Subtenant is obligated to perform, and (b) any other acts or omissions of Subtenant or Subtenant's employees, invitees, agents or other representatives, and (c) any occurrence in or about the Subleased Premises, unless due to the gross negligence or willful misconduct of Sublandlord, its employees, agents, contractors or invitees.
14. Survival. The provisions of this Agreement that expressly extend or by their nature should extend beyond termination or expiration of this Agreement, shall survive and continue in full force and effect after any termination or expiration of this Agreement.
7 4937-8671-9543, v. 1
15. Surrender of Premises . Upon the expiration or earlier termination of this Agreement, (a) Subtenant shall surrender the Subleased Premises to Sublandlord in condition equal to or better than as received at the Commencement Date, ordinary wear and tear excepted, (b) Subtenant shall remove all of its personal property, fixtures, and equipment and shall repair any damage caused by such removal , and any property not so removed by Subtenant shall be deemed abandoned and may be disposed of by Sublandlord at Subtenant's expense, (c) if Sublandlord requires Subtenant to remove any and all alterations made to the Subleased Premises by Subtenant during the Term, then Subtenant shall be responsible for any cleaning or repairs necessary to restore the Subleased Premises to its original condition, less ordinary wear and tear. If and to the extent that Su blandlord does not require Subtenant to remove any alterations made to the Subleased Premises by Subtenant during the Term, then Subtenant shall have no right to remove the same, and such alterations shall become and remain a part of the Subleased Premises without the need for any payment or consideration to Subtenant.
16. Governing Law; Jurisdiction; Venue . This Agreement shall be governed by California law (United States), without reference to rules regarding conflicts of law. The California State Superi or Court located in Sacramento County, California, shall have exclusive jurisdiction over disputes between the parties, and the parties hereby consent to the jurisdiction and venue in Sacramento County, California.
17. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall constitute an original and all of which together shall constitute one instrument. The counterparts of this Agreement and all ancillary documents may be executed and delivered by facsimile or other elec tronic signature, such electronic signature being intended by the signing party to comply with the provisions of California Civil Code Sections 1633.1 through 1633.17, inclusive, and the receiving party may rely on the receipt of such document so executed and delivered by facsimile or other electronic means as if the original had been received.
18. Severability. If any term or provision of this Agreement, or the application thereof to any person or circumstance, shall to any extent be found to be invalid, void, or unenforceable, the remaining provisions of this Agreement and any application thereof shall, nevertheless, continue in full force and effect without being impaired or invalidated in any way. The parties further agree to replace any such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business, and other purposes of the void or unenforceable provision.
19. Waiver. No waiver of any term, provision, or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be or be construed as a further or continuing waiver of any such term, provision, or condition or as a waiver of any other term, provision, or con dition of this Agreement.
20. Headings. Headings used in this Agreement are for reference purposes only and neither limit nor amplify the terms and conditions of this Agreement.
21. Entire Agreement. This Agreement, along with its exhibits, and the Maste r Lease to the extent incorporated herein by reference, contains the entire agreement and understanding of the parties with respect to the subject matter of this Agreement, and merges and supersedes all prior agreements, discussions, and writings with respect to that subject matter. In electing to execute this Agreement, no party is relying on any statement or representation from the other that is not expressly set forth in this Agreement, and the parties acknowledge that any such reliance would be unreason able. No modification or alteration of this Agreement shall be effective unless made in writing and signed by both Sublandlord and Subtenant.
The City Manager of the City is empowered to execute amendments on behalf of the City, provided that
8 4937-8671-9543, v. 1
the amendments do not change the general scope of this Agreement and that the amount of the expenditure or income resulting from the amendments is less than $250,000.
22. Notices. Unless otherwise specifically provided herein, all notices, consents, approvals, requests and other communications required or permitted under this Agreement shall be in writing, shall be sent using only the methods described in this Section 22, and shall be deemed effective (a) upon delivery if hand delivered; (b) one (1) business day after delivery to any nationally recognized overnight courier service for next business day delivery, fee prepaid; (c) upon transmittal if sent by e-mail prior to 6:00pm on a business day (otherwise on the next business day after transmittal), provided that the sender does not receive notice that e-mail transmission or delivery has failed for any reason; or (d) three (3) days after deposit with the United States Postal Service as registered or certified mail, postage prepaid, and in each case sent to the address of the party set forth below its signatures hereon.
23. Successors and Assigns. Subtenant shall not assign this Agreement or the Sublease or the subleasehold estate created hereby or any interest therein without the prior written consent of Sublandlord, which consent may be withheld in the sole and absolute discretion of Sublandlord. This Agreement and the Sublease shall inure to the benefit of and shall be binding upon the parties hereto, their heirs, personal representatives and permitted successors and assigns.
24. Brokers. Subtenant and Sublandlord each warrant and represent to the other that it has not retained, nor is it obligated to, any person for brokerage, finders or similar services in connection with this Sublease.
25. Special Provisions; Regulatory Compliance. Pursuant to California Civil Code Section 1938, Sublandlord hereby discloses to Subtenant that as of the date of this Sublease and to Sublandlord’s actual knowledge, the Subleased Premises has not undergone inspection by a Certified Access Specialist (CASp) to determine whether said Subleased Premises meets applicable construction-related accessibility standards. In furtherance of this disclosure obligation, Sublandlord states as follows:
A Certified Access Specialist (CASp) can inspect the subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection and the cost of making any repairs necessary to correct violations of construction-related accessibility standards within the premises.
The foregoing verification is included in this Sublease solely for the purpose of complying with California Civil Code Section 1938 (the “Disclosure”). Pursuant to the Disclosure, Subtenant and Sublandlord hereby agree that (a) any CASp inspections requested by Subtenant shall be paid for by Subtenant, shall be conducted in compliance with reasonable rules in effect at the Master Premises with regard to such inspections, and shall be subject to Sublandlord’s prior written consent, and (b) any repairs or modifications necessary to correct violations of accessibility standards shall be the responsibility of (i) Subtenant to the extent related to the Subleased Premises or any alterations to or access to the Subleased Premises, and (ii) Sublandlord or Master Landlord to the extent related to areas outside of the Subleased Premises (other than access to the Subleased Premises).
//
9 4937-8671-9543, v. 1
IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the first day above written.
“Sublandlord”
YOUNG MEN’S CHRISTIAN ASSOCIATION
OF SUPERIOR CALIFORNIA (YMCA), a
California nonprofit corporation
By:_____________________________
Name: SHARNA BRAUCKS
Title: President
Dated:_________________________
Sublandlord’s Address:
1926 V Street
Sacramento, CA 95818
Email: _____________________
Phone: _____________________
“Subtenant”
THE CITY OF SACRAMENTO, a Charter City
and municipal corporation
By:_____________________________
Name:___________________________
Title:____________________________
Dated:_____________________________
Subtenant’s Address:
________________________________
Sacramento, CA __________________
Email: _____________________
Phone: _____________________
ATTEST
________________________________
City Clerk
APPROVAL AS TO FORM
_________________________________
City Attorney
10 4937-8671-9543, v. 1
CONSENT TO SUBLEASE
Pursuant to Article 16 of the CADA COMMERCIAL LEASE effective June 1, 2024 executed by YOUNG MEN’S CHRISTIAN ASSOCIATION OF SUPERIOR CAL IFORNIA (YMCA) and CAPITOL AREA DEVELOPMENT AUTHORITY, a California joint powers agency , the CAPITOL AREA DEVELOPMENT AUTHORITY hereby consents to the sublease of the Subleased Premises to __________________________ pursuant to the terms of the Sublease Agreement dated _______________.
LANDLORD
Date: ___________________ CAPITOL AREA DEVELOPMENT
AUTHORITY, a California joint powers
agency
____________________________________
By: ______________________________
Landlord’s Address:
1522 14th Street
Sacramento, CA 95814
Email: _____________________
Phone: _____________________
11 4937-8671-9543, v. 1
EXHIBIT A
DESCRIPTION OF MASTER PREMISES
First Floor
Second Floor
12 4937-8671-9543, v. 1
EXHIBIT B
DESCRIPTION OF SUBLEASED PREMISES
13 4937-8671-9543, v. 1
EXHIBIT C
COPY OF MASTER LEASE