AGENDA CAPTION:
Title
Consider approval of Resolution 2026-12R, approving a Facility Lease Agreement with Community Action, Inc. of Central Texas, a 501(c)(3) nonprofit, by which the city leases the San Marcos Senior Citizens Center, located at 810 Arizona Street, to Community Action, Inc; authorizing the City Manager, or her designee, to execute said Nonprofit Facility Lease Agreement; and declaring an effective date.
Body
Meeting date: January 20, 2026
Department: Public Works - Facilities
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Background Information:
On April 18, 2023 staff provided City Council a work session presentation regarding the development of a standardized Facility Lease Agreement Template for Non-profits. This presentation included the condition of City facilities, the outreach conducted with the Non-profits, an assessment of known facility lease issues and recommendations to maximize community services through the use of a standardized Facility Lease Agreement Template. Council direction was for staff to proceed with negotiating facility lease agreements utilizing a ten-year lease term and a maintenance threshold of $2,000 for any single maintenance item or repair. The Non-profit is responsible for minor repairs/maintenance under the threshold and the City is responsible for repairs/maintenance that meets or exceeds the $2,000.
This item is the fourth non-profit lease agreement, using the new non-profit lease agreement template, brought to City Council for consideration of approval by the Public Works department. Previously approved lease agreements:
• Price Center
• Cephas House
• Calaboose Museum
The San Marcos Senior Citizens Center facility lease is the fourth and final lease for approval consideration that is managed by the Public Works department. Additional leases utilizing the nonprofit lease agreement template, managed by other departments, may come to City Council for consideration as terms of those existing leases expire.
Staff has met with representatives of the Community Action Inc. of Central Texas, a 501 (c)(3) organization, to discuss the terms of the Facility Lease Agreement for the lease of the San Marcos Senior Citizens Center located at 810 Arizona Street. The Lease Agreement on this agenda for Council consideration will be considered for approval on January 15, 2026 by the Board of Community Action Inc. of Central Texas.
The Facility Lease Agreement provides the Non-profit with standardized terms, clarity of maintenance or repair responsibilities and a ten-year lease term for the agreement. The Facility Lease Agreement provides the City with quarterly financial & performance reports from the Non-profit and clearly states the public purpose which the Non-profit is providing the community.
A “track changes” version is not provided because the new lease template varies significantly from the previous lease agreement that was used. However, below are significant changes from the previous lease to the proposed lease:
• Original lease from 1981 was for the parking lot of the building and did not include the Senior Citizens Center building in the lease terms
• The new lease will have a ten (10) year term. Previous lease was in perpetuity unless terminated by either party to the agreement
• In the new lease, maintenance responsibilities are shared by lessee and lessor as defined by a monetary threshold of $2,000. Previous lease placed all maintenance responsibilities for the parking lot to the lessee
Information provided by Community Action Inc. of Central Texas:
San Marcos Senior Citizens Center public purpose:
To provide services to senior citizens including nutrition support, recreational & social activities, health & wellness activities, educational programs, individual support services, and clothing support.
Vision Statement:
Helping Central Texans improve their economic self-reliance through a wide range of services and community partnerships.
Services and Activities:
The San Marcos Senior Citizens Center, operated by Community Action, Inc. of Central Texas, provides a variety of supportive, recreational, health, and educational services for older adults in the community. The Center is open Monday through Friday and serves an average of 20-48 seniors daily.
Services and activities include:
• Nutrition Support: Daily hot, nutritious lunches; weekly food distributions in partnership with the Hays County Food Bank.
• Recreational and Social Activities: Daily Bingo/Lotería, monthly birthday celebrations, arts and crafts projects, gardening and walking clubs, and group exercise activities such as Chair Zumba.
• Health and Wellness Services: Monthly wellness checks (blood pressure, blood sugar, diabetes education) provided by healthcare partners; health and nutrition presentations.
• Educational Programs: Monthly presentations on long-term care planning, hospice, funeral arrangements, wills, and end-of-life planning.
• Individual Support Services: Monthly assistance with government benefits, medical forms, utility assistance applications, affordable housing referrals, and access to low-cost vision care.
• Clothing Support: Weekly clothes closet providing free clothing items.
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Recommendation:
Staff recommends approval.