We did it, at least for now!
On Tuesday, Feb. 20, the Sausalito City Council agreed to keep the SCA rent at its current rate for up to six months. After lengthly discussion, the Council also requested that City Manager Chris Zapata conduct a review of all leases currently held by the City. The Council intends to gather the information needed to create consistent policies and procedures in which to negotiate leases for all City properties.
Once the research is conducted and the policies created, SCA will have the opportunity to discuss an appropriate rent amount with City Manager Zapata.
The support for SCA was overwhelming. Over 300 letters of support were sent to the Council by people and art organizations near and far. Likewise, the Council meeting was packed with supporters who spoke passionately about the value SCA brings to our community.
Reading your letters has made us even more convinced that the best use of the former Bank of America building is the Sausalito Center For The Arts. It is adding to Sausalito’s artistic heritage while giving residents and visitors alike reasons to enjoy our beautiful downtown. It’s making a difference in the lives of many.
We can not thank you enough for making your voice heard, it carried the day.
The Sausalito Center For The Arts
The Sausalito Center For The Arts (SCA), is a non-profit organization on a mission to create a multi-purpose arts center downtown. The center gives residents more opportunities to enjoy our beautiful downtown district and enriches the cultural experience of the region through diverse artistic expression and experiences.
In our first year, we successfully launched a vibrant and active arts association with high quality exhibits supporting a variety of artistic programs for artists, residents and visitors alike. To continue our rapid success, we need your help before the City Council meeting schedule for Feb. 20.
SCA began in 2021 when a group of dedicated community, business and art leaders, supported by a variety of city organizations including the ICB Arts Association, Marin Open Studios, and the Sausalito Art Festival Foundation, worked together to imagine and prepare for the Sausalito City Council, what became a winning proposal to place a regional class multi-media art center in the former Bank of America building. (Footnote 1)
Once awarded the opportunity to lease the building from the City of Sausalito, SCA was given a temporary license agreement and urged to immediately activate the vacant building by creating art events. During this time and over several months, the City drafted a lease that the SCA board eventually approved. A lease that now threatens to slow our amazing growth and momentum.
Operating the SCA costs the City nothing.
At the City Council meeting where the lease was to be approved, a last-minute requirement was added: after 18 months, SCA’s rent would increase from $4,029/mth to $11,095/mth.
The Lease already requires SCA to cover 100% of the operational costs of the Center, 100% of the maintenance of the building, and 100% of building improvements. This proposed rent increase would also require SCA to pay 100% of the City’s cost of acquiring the property! (Footnote 2)
Additionally, the City has a long-term lease with the Bank of America to house its ATM. The City receives roughly $2,500 a month from BoA which if it chose to do so, could be applied to the principal on its loan.
During its Phase 1 Buildout, SCA spent over $125,000 removing banking infrastructure, replacing carpet, painting the building interior, purchasing equipment, and repairing plumbing, electrical, fire and alarm systems. In 2024, during its Phase 2 Buildout, SCA intends to begin needed maintenance on the exterior of the building, all without financial support from the City.
This rent increase will slow the rapid progress SCA has made in producing quality events for the community and continuing the artistic legacy of Sausalito, while it continues to pay to maintain and renovate the building.
SCA is a group of volunteers dedicated to preserving the legacy of art in Sausalito.
This is an exemplary community effort that combines public and private resources. The current arrangement costs nothing for the City to operate, while delivering an impressive number of events, over 50 per year - attracting 32,000 residents and visitors to the Center and downtown businesses. In addition to supporting local businesses, it has a positive impact on the City’s parking and tax revenues, and quality of life. SCA is a true gem for the City and keeps its legacy as an artist enclave alive.
A new approach to providing civic services.
We love and fully support the civic services in Sausalito, but many cost the City hundreds of thousands of dollars to staff and operate. However, the SCA (which serves a much larger population than other civic services), is provided at no operational cost to the City. Additionally, SCA has hosted a large number of Sausalito non-profits that have used the venue for various events and as a meeting space.
Also, the City has a board seat on the SCA and has significant control over its operations, and in fact, often uses the facility and equipment purchased by SCA for City events.
Competitive rental rate lease terms.
A few critics argued that the City gave SCA a below-market rental rate. But, when all aspects of the Lease are evaluated, SCA is already paying a competitive rental rate while providing an extraordinary public service:
o The City is receiving rent payments equaling nearly ½ of its acquisition cost (Footnote 2)
o SCA is responsible for 100% of building maintenance costs including roof, plumbing, foundation, etc. SCA needs to accrue an estimated $6k/month to meet this Lease obligation.
o SCA accrues an additional $2,500 a month to remedy any asbestos and lead contamination in the building.
o The City reserved in the Lease the right to use facility for civic purposes up to five days per month.
o SCA exceeded the Lease’s requirements for holding four programs and classes per month in its first year, and will provide in excess of five programs and classes per month in 2024.
o SCA has had a DEI (Diversity, Equity & Inclusion) focus in over 20% of its events.
o The City has the right to share in any revenues from private events in excess of $15,000 in any month.
It’s clear that the Sausalito Center For The Arts has made a meaningful contribution to its community in a very short period of time. SCA has become a community gem that enriches the community and is worthy of community and City support.
please show your support before feb. 20
To our many volunteers, artists, supporters and fans, we need your help preparing for a Sausalito City Council meeting on February 20th.
If you’d like to see SCA continue to thrive in order to give back to our community, please voice your opinion to the City Council.
Let the City Council know that you don’t want to raise the rent at SCA. Let them know they should keep it the same or even lower it as a reward for the exceptional, high value, great deal and public service SCA has provided, and is providing for the entire City.
On Feb. 20, voice your support at a city council meeting
On Feb. 20, 2024, the Sausalito City Council will discuss SCA and the issue of raising its rent to $11,000/mth.
Your voice of support at the meeting can play a big role in keeping SCA vibrant and continuing the artistic legacy of Sausalito.
You can participate at the meeting either in person or via Zoom.
before feb. 20, send the city council a message
Show your support to keep this vibrant and active arts association providing value to the City of Sausalito.
Send the Sausalito City Council a message (citycouncil@sausalito.gov), asking it not to raise the SCA rent or even lower it as a reward for the exceptional, high value, public service SCA is providing for the entire City.
Sausalito’s new cultural gem
58 Exhibits & Events
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32,000 Visitors
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554 Participating Artists
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316 Volunteers
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4,200 Volunteer Hours
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35,000 Website Visitors
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58 Exhibits & Events 〰️ 32,000 Visitors 〰️ 554 Participating Artists 〰️ 316 Volunteers 〰️ 4,200 Volunteer Hours 〰️ 35,000 Website Visitors 〰️
Footnote 1. SCA’s proposal was submitted in tandem with a proposal to construct a rooftop restaurant. The lease negotiations for SCA were lengthy and complicated due to the fact that it was desired to have SCA take immediate possession of the ground floor. However, if the rooftop lease was consummated there would be significant disruptions of SCA’s operations during construction of the rooftop restaurant. SCA’s lease allows the City to do whatever is necessary to consummate a rooftop lease. Unfortunately, construction costs for this project are currently prohibitive. There is presently no immediate prospect for the construction of a rooftop restaurant on the building. However, SCA’s lease terms still require SCA’s full cooperation in such a project if it becomes feasible.
Footnote 2. The City borrowed the $2 million purchase price of the former Bank of America building. The City’s loan payments vary slightly, but average $157,336.14 per year. Divided by 12 = $13,111.35. The City currently receives $2,000 a month from the Bank of America on an ATM lease in addition to $4,029 a month from SCA. Moreover, the ATM lease payments will increase to $3,147 a month over the life of the ATM lease. If you subtract the ATM lease payment the City receives from the BofA, the proposed rent increase of $11,095.25 would fully cover the City’s cost of acquiring the building.