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HomeMy WebLinkAboutStaff Report 2509-5188CITY OF PALO ALTO CITY COUNCIL Special Meeting Monday, January 12, 2026 Council Chambers & Hybrid 5:30 PM     Agenda Item     B.Property Agreements Entered into by City Manager Under Palo Alto Municipal Code Section 2.30.210(h) and Reported Per Section Code 2.30.710(b) for Fiscal Year 2025 City Council Staff Report From: City Manager Report Type: INFORMATION REPORTS Lead Department: Administrative Services Meeting Date: January 12, 2026 Report #:2509-5188 TITLE Property Agreements Entered into by City Manager Under Palo Alto Municipal Code Section 2.30.210(h) and Reported Per Section Code 2.30.710(b) for Fiscal Year 2025 RECOMMENDATION This is an informational report; no Council action is required. ANALYSIS Pursuant to Palo Alto Municipal Code (PAMC) Section 2.30.210(h)1, the City Manager may award and sign contracts to rent, lease, or license city real property to other parties regardless of the price for a term not exceeding three years. Additionally, the City Manager may enter into and sign contracts for the rental, lease or licensing of real property at the Cubberley Community Center for a term of up to five years. Attachment A was prepared pursuant to PAMC Section 2.30.710(b)2 and reports to the Council of all leases, licenses, and rentals of city real property with third parties, approved by the City Manager during fiscal year FY 2025. The report excludes agreements approved by the City Council. Total revenue for FY 2025 from agreements authorized by the City Manager during the fiscal year totaled $453,843. FISCAL/RESOURCE IMPACT The lease amounts presented in this report are consistent with the rental income revenue included in the FY 2025 budget. The ongoing portion of these leases will be used in the annual budget process to determine rental income revenue for future fiscal years. STAKEHOLDER ENGAGEMENT Staff coordinates with tenants on the execution of agreements and appropriate documents. ENVIRONMENTAL REVIEW This item is not a project as defined by the California Environmental Quality Act (CEQA) because 1 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-61881 2 https://codelibrary.amlegal.com/codes/paloalto/latest/paloalto_ca/0-0-0-62183 the report is for informational purposes only with no action required by the Council. CEQA ATTACHMENTS APPROVED BY: CITY OF PALO ALTO ADMINISTRATIVE SERVICES DEPARTMENT/REAL ESTATE DIVISION Number Tenant Address Room N/A K4 H5 & FH N/A N/A D2 U2B U1 E3 Square Feet Type of Agreement 500 Lease Execution Date Expiration Date Rent Rent Cycle TOTAL FY24-25 RENT 1 PALO ALTO PLAYERS-PENINSULA CENTER STAGE 1305 Middlefield Road 8/20/2024 8/23/2024 month to month 9/16/2024 month to month 10/15/2024 12/3/2024 12/20/2024 month to month 8/31/2027 $1,540.75 Monthly $15,407.50 2 LIVING WISDOM SCHOOL 2,940 Lease 2,395 Lease 12,000 1st Amendment to License 578 3rd Amendment to Lease 800 Lease 360 Lease 720 Lease 870 Lease 480 Lease 360 Lease 568 Lease 480 Lease 720 Lease 390 Lease 600 Lease 568 Lease 480 Lease 760 Lease 480 Lease 360 Lease 360 Lease 480 Lease 480 Lease 520 Lease 480 Lease 390 Lease 1,200 Lease 430 Lease 480 Lease 360 Lease 360 Lease 360 Lease 360 Lease 360 Lease 4 VANCE BROWN, INC.12/31/2024 3700 Middlefield Road 6 Groundwork Support Services Inc. 12/9/2024 12/12/2024 12/16/2024 12/9/2024 12/9/2024 4/10/2025 2/20/2024 10/15/2024 12/12/2024 12/12/2024 12/23/2024 4/10/2025 12/17/2024 10/24/2024 12/9/2024 12/9/2024 12/17/2024 5/7/2025 12/31/2025 $ 10 F3 E4B $630 Monthly $532.80 Monthly $942.40 Monthly $595.20 Monthly $399.60 Monthly $446.40 Monthly $532.80 Monthly $532.80 Monthly $577.20 Monthly $532.80 Monthly $432.90 Monthly $1,488 Monthly $533.20 Monthly $595.20 Monthly $446.40 Monthly $446.40 Monthly $399.60 Monthly $446.40 Monthly $446.40 Monthly $3,127.81 Monthly $1,326.16 Monthly $4,453.97 Monthly $305.20 Monthly $507.15 Monthly $1,129.31 Monthly $2,125.64 Monthly 74.57 Monthly F1 U5A 12/31/2025 12/17/2024 12/31/2025 Sang-ah Choi Shannon Wright F2 E4B 892.80 1,598.40 15,202 Lease 37,533.76 618 Lease 2,174 Lease 13,780 Lease 9,990 Lease 320 Lease $ TOTAL $453,843.57 Notes: Tenants numbers 18 and 24 moved studios during the fiscal year.