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Report regarding a resolution approving an amended and restated lease with the Boys and Girls Club of the Peninsula for the Orange Avenue Clubhouse located at 201 West Orange Avenue. (Rich Lee, Assistant City Manager)
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RECOMMENDATION
Recommendation
It is recommended that the City Council adopt a resolution approving an amended and restated lease with the Boys and Girls Club of the Peninsula for the Orange Avenue Clubhouse located at 201 West Orange Avenue.
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BACKGROUND/DISCUSSION
The City of South San Francisco entered into the existing lease agreement, included as Attachment 1, with the Boys and Girls Club of the Peninsula (BGCP) on March 1, 2023. The Orange Avenue Clubhouse (Property), located at 201 West Orange Avenue, has been operating since the early 1960s. The Property is a three-building campus serving approximately 200 kindergarten through eighth grade students. Building 1 is currently a single-story academic clubhouse and main entry, adjoining Building 2, the high bay gymnasium which includes a small two-story auxiliary classroom, office and storage space. Building 2 adjoins Building 3, a small single-story concrete masonry unit (CMU) structure, primarily used for storage. The buildings are located on City owned land with a common parking lot also serving the adjacent Orange Memorial Park.
The Boys and Girls Club of the Peninsula proposes to improve and redevelop the Property, expanding their coverage to include an additional 150 high school students, reaching a total of 350 kindergarten through high school students. Buildings 1 and 3 are proposed to be demolished and replaced with new two-story wood framed buildings of a slightly larger footprint. Building 1 would serve kindergarteners through eighth graders and house the kitchen, cafeteria, and an adjacent secure outdoor play/eating area. Building 3 would serve high school students and includes a secure flexible outdoor space for quiet enjoyment. Both buildings would internally access the existing Building 2 Gymnasium. The scope of improvements to Building 2 is yet to be determined and is currently assumed to be limited to cosmetic improvements. Proposed site improvements include re-striping the existing parking lot to gain additional stalls, widening the perimeter concrete walkway, addressing accessibility per current code requirements, utility and infrastructure improvements, adding a trash enclosure, replacing the wood good-neighbor fence at the northwestern property line, and addition of Project entitlements for the expansion and redevelopment of the Property will be considered by the City Council under a separate and subsequent item on the same agenda as this item.
In order to prevent program and service interruption, BGCP entered into an agreement with the City to temporarily occupy the vacant West Orange Library (WOL) while BGCP’s Orange Avenue Clubhouse is under construction. BGCP programs at WOL commenced on September 2, 2025. BGCP has submitted a preliminary Drop Off/Pick Up Plan that is currently under review. BGCP is also responsible for maintenance and any costs associated with the use of the facility, at no cost to the City.
To allow for the expansion and redevelopment of the Property, BGCP proposed to amend its lease with the City. The redline proposed amended and restated lease is included as Attachment 2, while the clean proposed amended and restated lease is included as Attachment 3. Notable amendments to the lease include the following:
• Section 2.1.2 Extension of Term: The City agrees to extend the lease for an initial term of 55 years from 2025, with up to two 10-year extensions for a total of 75 years. If BGCP meets its goals of serving children in SSFUSD and complies with the lease, the City will support the extensions. However, if BGCP fails to enroll at least 51% of SSFUSD children or violates the lease terms, the City may refuse the extensions and take ownership of the buildings.
• Section 2.2.1 Penalty Rent: BGCP prioritizes program enrollment for children residing within the boundaries of the South San Francisco Unified School District (SSFUSD). Penalty Rent applies if BGCP is unable to cure within the 12-month period following the enrollment year. Penalty rent is set at $150,000 per year and increases every 10 years by the Consumer Price Index (CPI), regardless of whether the Penalty Rent is triggered or not, if fewer than 51% of total available slots have been filled by children within SSFUSD boundaries.
FISCAL IMPACT
Approval of the amended and restated lease does not have any fiscal impact.
RELATIONSHIP TO STRATEGIC PLAN
Approval of the amended and restated lease promotes quality of life, in that BGCP’s Orange Avenue Clubhouse provides a valuable community resource for children residing in SSFUSD boundaries.
CONCLUSION
The amended and restated lease between the City and BGCP is part and parcel to the entitlement of BGCP’s proposed project to modify the Orange Avenue Clubhouse.