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Report regarding adoption of a resolution approving the Second Amendment to the Lease Agreement for use of the Economic Advancement Center located at 366 Grand Avenue in South San Francisco to extend the Lease until August 31, 2025. (Ernesto Lucero, Economic Development Manager).
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RECOMMENDATION
Recommendation
Staff recommend that the City Council adopt a resolution authorizing the City Manager to execute the Second Amendment to the Lease Agreement for 366 Grand Avenue, for the use of the Economic Advancement Center, to extend the Lease until August 31, 2025.
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BACKGROUND
On July 24, 2024, City Council approved a resolution authorizing the City Manager to execute the First Amendment to a lease agreement with Stacey S. Dobos Trust for use of the space for the Economic Advancement Center (EAC). The lease extension was executed, which extended the current lease until April 30, 2025.
The property owner has requested confirmation if the City will continue to lease the property until at least August 31, 2025. This is due to the unique size of the space and the potential for delays in re-leasing the space.
The property, encompassing approximately 6,900 square feet, has been a successful and attractive place for community members due to its central location, 21 dedicated parking spaces, high pedestrian traffic along Grand Avenue, its walkability and proximity to many modes of transportation. The space also connects to the City-owned Breezeway next door.
DISCUSSION
With the current First Amendment to the lease agreement expiring on April 30, 2025, the proposed Second Amendment would extend the lease for an additional four months, until August 31, 2025. Terms in the Second Amendment remain the same as the First Amendment, which include a lease rate of $2.40 per square foot, or $16,567 per month, a $500 janitorial credit per month, and continues to provide the City the ability to sublease all or portions of the EAC to other economic mobility partners. The total cost of the Second Amendment lease payments totals $66,268 and would be fully funded from funds already appropriated for the EAC.
Since the Council approved the First Amendment to the Lease Agreement last July, San Mateo County (County) approved and allocated $270,000 in grant funds for programmatic costs at the EAC. This contribution allows more short-term flexibility for the City to work with the property owner and EAC partners on a funding strategy into Fiscal Year (FY) 2025-26 and beyond. Staff also continue to meet with the County and its North Fair Oaks Economic and Employment Center (EDD), and the Opportunity Center of the Coastside (OCC) in Half Moon Bay through a Chan Zuckerberg Initiative (CZI) grant to measure the impact of the three economic mobility centers. This work should conclude by Spring 2025.
FISCAL IMPACT
There is no additional impact to the General Fund associated with adopting the associated resolution. The lease payments will be funded by previously appropriated grant funds.
CONCLUSION
Staff recommend that the Council adopt a resolution authorizing the City Manager to execute a Second Amendment to the Lease Agreement for 366 Grand Avenue, for the use of the Economic Advancement Center, to extend the Lease until August 31, 2025.