By unanimous vote on Feb. 20, the Sausalito City Council directed staff to maintain the current monthly rent paid by Sausalito Center for the Arts(SCA) for a period of up to six months. The SCA put out an appeal to the community to keep the rent at $4,029 per month instead of jacking it up to $11,095 as called for in the rent agreement.
The six-month extension was granted to give the Council time to develop a new framework for determining appropriate rents and lease terms for City-owned properties, which include the MLK Campus and Old City Hall, in addition to the former Bank of America Building occupied by SCA.
The new framework for leases and rents is expected to take into account considerations such as non-profit status, value to the community, and secondary revenue generation through increased use of City parking lots, sales tax revenue from neighboring businesses, etc.
The Council agreed that any rent increase for SCA as a result of this process would not be retroactive.
SCA’s current monthly rent of $4,029 had been slated for a March 2024 increase to $11,095, according to the terms of the triple-net lease between the City and SCA. “Triple-net” means that the tenant is responsible for all maintenance and improvements.
The City of Sausalito acquired the building at 750 Bridgeway for a price of $2 million in August 2020. After a competitive process to find a new tenant, the City entered into an agreement with the fledgling Sausalito Center for the Arts in August 2022.
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