HomeMy WebLinkAbout25I - CSUF GRAND CENTRAL ART
REQUEST FOR
COUNCIL/AGENCY
. ACTION
MEETING DATE:
~
~
CLERK OF COUNCIL USE ONLY:
APR:IL 5,2004
TITLE:
APPROVED
0 As Recommended
0 As Amended
0 Ordinance on 1st Reading
0 Ordinance on 2nd Reading
0 Implementing Resolution
0 Set Public Hearing For
AGREEMENT W:ITH CAL:IFORN:IA STATE
UN:IVERS:ITY, FULLERTON FOUNDAT:ION
FOR THE GRAND CENTRAL ART CENTER
f2d
CONTINUED TO
CITY MANAGER
FILE NUMBER
¥
RECOMMENDED ACTION
4IÞ£:ITY COUNC:IL ACT:ION
Direct the City Attorney to prepare and authorize the City Manager and
the Clerk of the Council to execute an agreement to accept the
assignment of the California State University, Fullerton premises from
the Agency.
COMMUN:ITY REDEVELOPMENT AGENCY ACT:ION
1.
Direct the Agency General Counsel to prepare and authorize the
Executive Director to execute an agreement with the California
State University, Fullerton Foundation to amend their contract to
operate the Grand Central Art Center for an additional 20 years.
2.
Direct the Agency General Counsel to prepare and authorize the
Executive Director and Secretary to execute an agreement to assign
this lease to the City of Santa Ana.
D:ISCUSS:ION
_In 1995, the Community Redevelopment Agency entered into an agreement
~ith the California State University, Fullerton (CSUF) Foundation to
251-1
Agreement with California State
University, Fullerton Foundation
for the Grand Central Art Center
April 5, 2004
Page 2
operate its graduate visual arts program at the Grand Central building
located at East Second Street and Broadway in the Artists Village. The
building was completely renovated by the Agency for use by the
University. Construction was completed on this historic building in
1999, triggering the 10-year Operating Agreement. The Grand Central Art
Center includes three art galleries, a live performance "black box"
theater, a printmaking studio and a restaurant. There are also 27
student residential units with studio space for each resident student.
The building opened in February 1999. Since that time, the facility has
been a tremendous asset to the City, the Artists Village and the entire
Downtown. Under the terms of the agreemènt, the Agency agreed to
provide an operating subsidy for the first four years based upon the
projected annual operating deficit to the University. This annual
subsidy expired in December 2002. .
At the mutual request of staff and CSUF, it is recommended that the
lease be extended for an additional 20 years or until 2029. In
addition, due to unexpected operating cost increases and somewhat lower
revenues from the Gypsy Den restaurant leasè and less than anticipated
use of the black box theater, a new operating subsidy is recommended for
the next five years. The additional assistance to be paid by the Agency
will be as follows:
2003
2004
2005
2006
2007
$80,000
75,000
70,000
65,000
60,000
The 20-year extension may only be rescinded upon the mutual agreement of
both parties. This 20-year lease extension will ensure the long-term
presence of Cal State Fullerton in the heart of the Artists Village,
thereby solidifying the City's long-term vision for that area of the
Downtown.
Under the subject agreement, the Agency will assign the fee simple
interest in the premises to the City of Santa Ana, and CSUF will consent
to this assignment subject to the City's compliance with all terms and
conditions of this lease. This is necessary, as the Agency cannot enter
into a long-term lease with CSUF under California Redevelopment Law.
251-2
Agreement with California State
University, Fullerton Foundation
~or the Grand Central Art Center
April 5, 2004
Page 3
F:ISCAL :IMPACT
Funds for this agreement are available in the South Main Redevelopment
Project Area account (account no. 550-936-6291).
Joj! 4:",n
Executlve Dlrector
Community Development
Agency
JPR/LDY/kla
8
8H: Actioosl2OO4CC\JTCC -CRAAgreeCS VFFndbl GrodCtr IArtCtr -4- 5-04
APPROVED AS TO FUNDS AND ACCOUNTS:
Services Agency
251-3