SR 05-14-2019 3A
City Council
Report
City Council Meeting: May 14, 2019
Agenda Item: 3.A
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To: Mayor and City Council
From: Karen Ginsberg, Director, Community & Cultural Services
Subject: Lease Agreement with Hill & Dale Family Learning Center for the use of the
former Clover Park Fire Station located at 2801 25th Street, Santa Monica
Recommended Action
Staff recommends that the City Council authorize the City Manager to negotiate and
execute an amendment to the lease with Hill & Dale Family Learning Center (Hill &
Dale) at 2801 25th Street (the former Clover Park Fire Station) for continued use as a
child care center in Santa Monica for a term of five years for $1/year with no escalation.
Summary
Since 1986, the City has leased the former Clover Park Fire Station located at 2801 25 th
Street to Hill & Dale for the operation of child care facilities and child care-related
meetings. Hill & Dale intends to remain at this location and staff seeks authorization to
continue to lease this property to Hill & Dale for continued operation of child care
facilities. The current lease agreement expires June 30, 2019. The proposed lease term
is for a period of five years with one five -year option to renew. The rent will continue to
be $1/year and the lease would be effective on July 1, 2019.
Discussion
Hill & Dale Clover Park runs full-day, full-year early childhood education programs for
children of Santa Monica residents and workforce and also offers 8-week My Family &
Me classes (for parents with infants and toddlers). The facility is licensed for 10 infants
and 26 toddlers and Tuition Assistance is made available to low-income Santa Monica
residents or workforce.
On August 13, 1985, City Council sought proposals from non -profit childcare providers
to renovate and utilize the unused Fire Station at Clover Park and recommended that
the property be renovated and rented for a minimal charge for up to 10 years. On
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February 25, 1986, staff recommended to Council that Hill & Dale be selected to
renovate and occupy the property. In July 1986, the City entered into Lease Agreement
#4762 with Hill & Dale for ten years at a rent of $1/year and in December 1998 this
lease was extended for five years.
In July 2004, based on the results of a Request for Proposals for leasing the property
for an early childhood center, the City executed Lease Agreement #8265 with Hil l &
Dale to continue full use of the building and fenced outdoor area for operation of
childcare facilities. The term of the agreement was for five years, with three separate
consecutive options to renew for five years (Attachment A). Hill & Dale has since
exercised two of three five-year options to renew the lease, and the current term ends
on June 30, 2019.
The proposed amended lease with Hill & Dale would be for a term not to exceed five
years at $1/year. This rent is consistent with comparable leases of City-owned buildings
leased to community non-profits. Staff recommends amendments to the Lease to
include language to address Lessee’s responsibility to conform with ADA requirements
and to clarify that the building’s property insurance costs shall be c overed by the City.
SUMMARY OF PROPOSED LEASE TERMS
Lease Commencement July 1, 2019
Rent Commencement July 1, 2019
Term Ends June 30, 2024
Options to Renew One five-year term
Rental Rate $1/year
Escalations None
Past Council Actions
June 17, 2003 Approval of Lease #8265
Financial Impacts and Budget Actions
The recommended lease with Hill & Dale would continue to generate $1/year in
revenues. There are no changes to the revenue budget for the FY 2019 -20 Proposed
Budget.
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Prepared By: Claire Hester, Senior Administrative Analyst
Approved
Forwarded to Council
Attachments:
A. Hill and Dale Lease
REFERENCE:
LEASE NO. 10838 (CCS)