Report Prepared by: Amanda Williams, Economic Development Associate, Economic Development Department
Title
SUBJECT: Approval of a Five (5) Year Lease Agreement with the Merced County Arts Council Inc, with an Option to Extend for an Additional Five (5) Years
REPORT IN BRIEF
Considers approving a five-year lease agreement with the Merced County Arts Council.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the lease agreement between the City of Merced and the Merced County Arts Council; and,
B. Authorizing the City Manager to execute the necessary document.
Body
ALTERNATIVES
1. Approve as recommended by staff; or
2. Approve, subject to conditions as specified by the City Council; or
3. Deny the request; or,
4. Refer back to staff for reconsideration of specific items as requested by the Council; or
5. Continue to a future meeting (date and time specified in motion)
AUTHORITY
Charter of the City of Merced, Section 200.
CITY COUNCIL PRIORITIES
As provided for in the 2026-2027 Adopted Budget.
DISCUSSION
The Merced Multicultural Arts Center (MAC), located at 645 West Main Street, is a City-owned facility of approximately 27,000 square feet that has long served the arts and culture in downtown Merced. The facility is leased to the Merced County Arts Council, Inc., a nonprofit organization that provides public arts programming, gallery exhibitions, dance, music, theater, and programs for disadvantaged and disabled individuals.
The previous Lease Agreement has now expired, and staff has negotiated an agreement with the Merced County Arts Council (see Attachment 1). The subject site will continue to provide public art and will continue operations and management services.
Services provided by the Merced County Arts Council include:
1.) Public access for no less than thirty hours per week.
2.) Provide adequate staffing for public reception, security, and arts programs within the Merced Multicultural Arts Center.
3.) Provide or contract security for the Merced Multicultural Arts Center.
4.) Provide and display visual arts, performing arts, art education, youth arts education, cultural diversity art, and programming for children and adults with disabilities.
5.) Provide arts administrative spaces, including office and meeting spaces for arts organizations in the community.
6.) Permit the City of Merced ("Lessor") to reserve and use Facility spaces without fee or charge for City events, including events sponsored by the City.
All services provided are for the benefit of the general public. For additional details of services provided see Exhibit C (Scope of Work) at Attachment 1.
The proposed agreement includes the necessary repairs, maintenance, and renovation of the facility. The City will provide a maximum reimbursement of $300,000 over the entirety of the lease term. Of this amount, the City will advance $140,000 to the Lessee within 60 business days of the mutually executed lease. The authorized renovation and repair items are contained in Exhibit D of the agreement at Attachment 1, and include the following eight categories: rooftop coating, plumbing, lighting, HVAC upgrades and replacement, connectivity upgrades, elevator maintenance, pigeon removal and deterrence, and ADA compliance upgrades.
Notable terms of the proposed Lease Agreement are as follows:
Term: Five (5) Year Lease Agreement with an option to extend for an additional five (5) years.
Rent: Public services in exchange for use of the building.
IMPACT ON CITY RESOURCES
The Fiscal Year 2026-27 budget includes $300,000 in the Economic Development Opportunity Fund for this lease agreement.
ATTACHMENTS
1. MAC Lease Agreement