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DISCUSSION
City of San Bernardino
Request for Council Action
Date: March 4, 2026
To: Honorable Mayor and City Council Members
From: Eric Levitt, City Manager
Department: City Manager's Office
Subject: Authorization to Proceed with Lease Renewal Negotiations with the YMCA of the East Valley for 808 E. 21 st Street (Ward 2)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City Manager to proceed with lease renewal negotiations with the YMCA of the East Valley for the property located at 808 E. 21st Street.
City Manager's Comments
Based on the current lease, the City Manager is signing the 5 year extension allowed in the current lease. The City Manager additionally requests City Council authorization to negotiate a long-term lease extension based on the opportunity for the YMCA to receive outside funding for significant improvements to the facility if they have a long- term lease. This is a unique lease for the City due to the YMCA having a land lease with the City, and the YMCA owning the building on the land.
Executive Summary
The YMCA of the East Valley currently leases the property located at 808 E. 21st Street and has recently notified the City of its desire to enter into a new long-term lease for the property. The City’s newly adopted Leasing Policy requires Council authorization for City staff to proceed with renewal negotiations. As part of this process, a Conceptual Renewal Proposal is being submitted to the Mayor and City Council in the form of this staff report. The proposal summarizes the existing lease with the YMCA of the East Valley, identifies any anticipated changes to the material terms of the agreement, describes the public benefit to the City, and discloses any known community, political, or public-interest considerations associated with the lease. If authorized to proceed, City staff will negotiate a lease renewal consistent with Council direction and return to the City Council for approval of the final lease agreement. 3 2
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Background
On May 13, 1960, the City partnered with the Young Men’s Christian Association (YMCA) of San Bernardino to provide a variety of recreational, cultural, and educational programs to San Bernardino residents at the facility located at 808 E 21st Street, San Bernardino, CA 92404. The partnership took the form of a fifty (50)-year lease, with the YMCA of San Bernardino paying a lease rate of $1.00 per year. In return, the YMCA of San Bernardino has been responsible for operating and maintaining the facility at their sole expense.
Since the 1960 lease, the City has renewed its lease with the YMCA of San Bernardino several times, including the following:
On June 20, 2005, the existing lease agreement was terminated prior to its expiration date, and a new five (5)-year lease agreement was approved by the Mayor and City Council. This was done to reflect the new legal corporate name of the organization, which became YMCA of the East Valley (herein referred to as “YMCA”) after the YMCA of San Bernardino merged with the Redlands Family YMCA. The new lease became effective on January 1, 2006, and was set to expire on December 31, 2010.
On December 20, 2010, the Mayor and City Council extended the lease by sixty (60) days, extending the termination date to March 1, 2011. On February 7, 2011, a five (5)-year extension was approved by the Mayor and City Council, establishing a new lease term of March 1, 2011, through March 1, 2016.
On March 21, 2016, the Mayor and City Council approved a new ten (10)-year lease agreement with a termination date of March 1, 2026. As part of the terms of the lease, an extension option was provided to the YMCA under Section 5 of the agreement as follows:
CITY gives to LESSEE the option to extend the term of the LEASE for an additional five (5) years on the same provisions and conditions, including rent, following expiration of the INITIAL TERM by LESSEE giving notice of its intention to exercise the option to CITY prior to the expiration of the preceding term or during any holding over pursuant to SECTION 7, HOLDING OVER.
In December 2025, the YMCA notified the City of its intention to exercise its five (5)- year extension option in accordance with Section 5 of the current lease agreement.
The extension option was executed by the City Manager in February 2026, and the current lease now expires on March 1, 2031. Additionally, the YMCA notified the City of its desire to negotiate and establish a new long-term lease agreement with the City, with a term commencing at the end of the current five (5)-year extension period.
On March 18, 2026, the Mayor and City Council adopted Resolution No. 2026-017, approving a standardized policy for city-owned leases. The purpose of this policy is to establish uniform procedures governing the approval of new leases and lease renewals 3 2
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of City-owned real property. Additionally, the policy ensures that the City Council makes an affirmative policy determination, prior to negotiations, as to whether an existing lease should be renewed or whether the City should pursue competitive alternatives.
Discussion
The YMCA recently notified the City of its desire to enter into a new long-term lease agreement for the property located at 808 E. 21 st Street. As required by the newly adopted City of San Bernardino Leasing Policy, a Conceptual Renewal Proposal is being submitted to the Mayor and City Council for consideration prior to any negotiations with the existing lessee. The Conceptual Renewal Proposal is provided below and summarizes the existing lease, identifies any anticipated changes in material terms of the agreement, describes the public benefit to the City, and discloses any known community, political, or public-interest considerations associated with the lease. Following the presentation of the Conceptual Renewal Proposal, the City Council shall, by motion, determine whether:
(a) The City should proceed with renewal negotiations with the existing lessee; or (b) The City should decline the renewal and direct staff to initiate a Request for Proposals for the property.
If the City Council authorizes renewal negotiations with the YMCA, City staff will negotiate a renewal that is consistent with Council direction. City staff will then return to Council with final lease documents for approval prior to execution.
Current Lease Summary
The City’s current lease with the YMCA is for a portion of Perris Hill Park located at 808 E. 21 st Street, San Bernardino, CA 92404 (parcels 0147-031-16 and 0147-031- 12). This is a ground lease in which the City owns the land and the YMCA owns and maintains the building located on the property. The lease has a total term length of fifteen (15) years, which includes an initial ten (10)-year term and a five (5)- year extension option. The property is leased at a rate of $1.00 annually, where the YMCA is responsible for the following at its sole expense:
All maintenance, repairs, and groundskeeping.
All utilities and related costs.
Obtaining and maintaining all required insurance coverages. Adhering to all ADA, health, safety, fire, and building code requirements.
Additionally, the current lease allows the YMCA to modify the existing building structures on the premises, as well as place modular units on the leased property to serve as offices, classrooms, or similar uses. All alterations and additions are to be made at the sole expense of the YMCA, and all permit acquisitions and utility line installations are the sole responsibility of the YMCA.
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Anticipated Changes in Material Terms
There are no anticipated changes in material terms at this time. All previous lease agreements with the YMCA for 808 E. 21 st Street maintained similar provisions regarding the lease rate and the roles and responsibilities of the lessee. The only term that varied substantially among the agreements was the length of each lease, ranging from a five (5)-year lease approved in 2005 to a fifty (50)-year lease approved in 1960.
The most recent lease agreement with the YMCA was a ten (10)-year lease with a five (5)-year extension option for a total potential lease term of fifteen (15) years.
Public Benefit to the City
Since the establishment of the initial 1960 lease, the YMCA has provided the residents of San Bernardino with recreational, cultural, and educational programming. In the past year, the YMCA has delivered the equivalent of $15 million in community benefit programs and services to the East Valley region, serving 8,000 children in afterschool programs and providing 8,827 members with scholarships. The YMCA seeks to enhance its existing services by making additional building improvements to better engage and connect with the children they serve each day.
Community, Political, and/or Public-Interest Disclosures The YMCA has not made any campaign contributions to any elected official of the City of San Bernardino based on a review of all applicable Fair Political Practices Commission (FPPC) forms. This review includes the YMCA of the East Valley’s President and CEO, Brandi Collato; Board Chair, Tyler Miner; and all Board Members.
Strategic Targets and Goals
Authorizing lease renewal negotiations with the YMCA aligns with Key Strategic Target and Goal No. 3: Improved Quality of Life. Renewing a long-term lease with the YMCA will allow the organization to continue to provide community benefit programs and services to the residents of San Bernardino.
Fiscal Impact
There is no fiscal impact associated with this action.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, authorize the City manager to proceed with lease renewal negotiations with the YMCA of the East Valley for the property located at 808 E. 21st Street.
Attachments
Attachment 1 – Resolution No. 2016-048
Attachment 2 – Lease Agreement with YMCA of the East Valley Attachment 3 – City of San Bernardino Leasing Policy
Ward:
Second Ward
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Synopsis of Previous Council Actions:
May 13, 1960 The Mayor and City Council adopted Resolution No. 5593 authorizing the execution of a fifty (50)-year lease with the Young Men’s Christian Association (YMCA) of San
Bernardino for a portion of Perris Hill Park.
January 16, 1961 The Mayor and City Council adopted Resolution No. 5813 authorizing the execution of a first amendment to the lease with the Young Men’s Christian Association (YMCA) of San Bernardino.
February 28, 1966 The Mayor and City Council adopted Resolution No. 8054 authorizing the execution of a second amendment to the lease with the Young Men’s Christian Association (YMCA) of San Bernardino.
June 20, 2005 The Mayor and City Council adopted Resolution No. 2005- 222 authorizing the execution of a five (5)-year lease with YMCA of the East Valley for a portion of Perris Hill Park.
December 20, 2010 The Mayor and City Council adopted Resolution No. 2010- 396 authorizing the first amendment to the lease agreement with the YMCA of the East Valley extending the term of the lease by sixty (60) days.
February 7, 2011 The Mayor and City Council adopted Resolution No. 2011-24 authorizing the execution of a second amendment to the lease agreement with the YMCA of the East Valley to extend the term of the lease for one additional five-year term.
March 21, 2016 The Mayor and City Council adopted Resolution No. 2016- 048 authorizing the execution of a ten (10)-year lease and five (5)-year extension option with YMCA of the East Valley for a portion of Perris Hill Park.
March 18, 2026 The Mayor and City Council adopted Resolution No. 2026- 017 approving a standardized policy for city-owned leases.
CC: Eric Levitt, City Manager