AGENDA CAPTION:
Title
Consider approval of Resolution 2025-128R, approving a Second Amended and Restated Lease with the San Marcos Lions Club for the Lions Club to lease a portion of the Pauline Espinosa Community Hall located in City Park for a term of five years with an annual rent in the amount of $12,500.00, with an option to renew for up to one additional five-year term upon mutual agreement; authorizing the City Manager, or her designee, to execute said lease; and declaring an effective date.
Body
Meeting date: August 5, 2025
Department: Parks and Recreation
Amount & Source of Funding
Funds Required: N/A
Account Number: N/A
Funds Available: N/A
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Fiscal Note:
Prior Council Action: Following approval of a ballot proposition to enter into a long term lease by the qualified voters on November 2, 2010, the City Council approved the initial Lease Agreement on June 21, 2011. The current lease, third five-year term, was approved by Council on April 6, 2021.
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Background Information:
On November 2, 2010, the qualified voters of the city approved ballot Proposition No. 1 to authorize the city to lease portions of the Rec Hall, now known as the Pauline Espinosa Community Hall, at City Park to the San Marcos Lions Club for inner tube renal operations. The lease was approved by the City Council on June 21, 2011 for an initial term of five years, commencing on April 11, 2011, with up to four additional terms of five years each, upon mutual agreement.
The current lease term began on April 11, 2021 and shall expire on April 10, 2026 with the following amendments agreed upon by both parties:
• Inclusion of funds donation from the concession stand at Rio Vista
• Creation of the River Parks Improvement Fund
• Increased litter abatement responsibilities
• Inclusion of a lease renewal deadline of October 1 of the preceding year of the expiration date.
Since the current lease requires a renewal deadline of October 1 staff is providing it to Council should any modifications need to be further negotiated.
Updates for lease term 2026-2031 are not substantive, but administrative and include updating the name of the facility to reflect the change in the name of the City Recreation Hall to the Pauline Espinosa Community Hall and to also reflect the restriction of selling single-use beverage containers in compliance with the Single-Use Beverage Ordinance.
A comprehensive memo detailing the history of the lease with the San Marcos Lions Club, including exhibits, has been prepared. During the 2025 City Council Visioning Workshop, the City Council requested an Efficacy Matrix, which has been developed and included by the Parks and Recreation Staff.
Additionally, the memo includes:
• A table of payments to the City as required by the lease.
• Grants received outside of the lease obligations.
• Data from the San Marcos Lions Club on non-profit grants and scholarships provided over the last five years, including monetary amounts and a list of funded non-profit organizations.
Council Committee, Board/Commission Action:
On April 17, 2025, the Parks & Recreation Board approved Recommendation Resolution 2025-02RR recommending renewal of the San Marcos Lions Club Lease unanimously (7-0 with one recusing due to being a Lions Club member). The Recommendation Resolution and minutes are attached for review.
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