HomeMy WebLinkAbout2017-12-05; City Council; ; First Amendment to the Lease Agreement with the MAAC Project to operate a preschool facility at 3368 Eureka PlaceCITY COUNCIL
Staff Report
Meeting Date
To:
From:
Staff Contact:
December 5, 2017
Mayor and City Council
Kevin Crawford, City Manager
Curtis M. Jackson, Real Estate Manager
Curtis.jackson@carlsbadca.gov or 760-434-2836
CA Review VJ{-,
Subject First Amendment to the Lease Agreement with the MAAC Project to
operate a preschool facility at 3368 Eureka Place.
Recommended Action
Adopt Resolution ratifying the First Amendment to the lease agreement with Metropolitan
Area Advisory Committee On Anti-Poverty In San Diego County, Inc. dba MAAC Project ("MAAC
Project") to operate a preschool at the city-owned property located at 3368 Eureka Place and
authorizing the City Manager to execute the lease agreement and the subsequent extension
option for the final year.
Executive Summary
MAAC Project, operator ofthe local Head Start program, has requested to exercise the first of
two, one-year extension options under the terms of their lease agreement ("Agreement").
MAAC Project has satisfied the terms of the Agreement, and city staff is desirous of granting
MAAC Project's request to extend the term of the Agreement one-year. Staff is recommending
that the City Council authorize the City Manager to execute the First Amendment to the
Agreement and any future actions related to the Agreement.
Discussion
On June 17, 2014, MAAC Project entered into a three-year lease agreement ("Agreement") with
the City of Carlsbad to lease 4,800 square feet of bui lding space located behind the Library
Learning Center at 3368 Eureka Place ("Premises"), to operate a preschool program. The
Agreement expired on June 30, 2017 and is currently in a holdover status. The Agreement
contained two, one-year options to renew, the first of which MAAC Project has requested to
exercise. The term of the extension will be one-year retroactive to July 1, 2017, and ending June
30, 2018.
Per Resolution No. 2014-141, City Council is authorized to approve the Agreement and the
Mayor is authorized to execute the Agreement, and any terms therein. For purposes of
administrative efficiency, staff is recommending that the City Council give authority to the City
Manager to approve and execute both this first one-year extension term, as well as the
impending final one-year extension term as appropriate.
December 5, 2017 Item #6 Page 1 of 6
Fiscal Analysis
The Agreement is subject to 2% annual rent increases which will increase the monthly lease rate
from $9,461.42 to $9,650.65 ($2.01 per square foot) for a revised total annual revenue of
$115,807.76 for the first option renewal year.
Next Steps
MAAC Project and city staff will continue to carry out the terms of the Amended Agreement.
Upon expiration of the Amended Agreement's term, the City Manager will have discretion to
approve or deny the final one-year extension option, which would include a 2% annual rent
increase.
Environmental Evaluation (CEQA)
The proposed action is exempt from the California Environmental Quality Act (CEQA) per State
CEQA guidelines 15301 -Existing Facilities. Section 15301 exempts the leasing of property
involving negligible or no expansion of use beyond that existing at the time of the agency's
determination.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to the meeting date and time.
Exhibits
1. City Council Resolution.
December 5, 2017 Item #6 Page 2 of 6