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BACKGROUND The City of Pleasanton owns a building at 333 Division Street located behind the Museum on Main, which also occupies a building owned by the City. For many years 333 Division Street was leased by the City to Valley Volunteer Center of Alameda County, which subsequently allowed Pleasanton Partnerships in Education (PPIE) to occupy two rooms in the building that were not being used. After Valley Volunteer Center vacated the building in 2004, PPIE continued occupying the two rooms under the terms of a formal use agreement (approved in 2005) and the City used the remaining available space to coordinate its youth services programs. After a number of years City staff no longer needed to use the space, leaving PPIE to solely occupy the building. In 2017, the City and Pleasanton Unified School District staff discussed finding space for PPIE at the District's campus on Bernal Avenue; a suitable space was identified and PPIE moved its office in late 2017, leaving the building at 333 Division Street vacant. DISCUSSION The City and Pleasanton Downtown Association have worked closely to promote, enhance and support downtown Pleasanton and its members since the inception of the association in 1984 under the Parking and Business Improvement Area Law of 1989. A formal agreement outlining this City-PDA partnership and committing to the City's match of the annual business district assessment revenues has been in place, most recently renewed in 2014 for a 5-year term. The current agreement requires the City to match the annual assessments paid by businesses in the Downtown Pleasanton Business Improvement District. City staff anticipates the approved 2019 match will continue to be around $75,000; this is included in the City's and the PDA's budgets. In addition to the direct City contribution, the City provides a significant amount in indirect funding which includes staff time to administer the PDA assessments and contract, assistance and support for events, as well as the cost to maintain downtown planters, cleaning sidewalks, and garbage pickup. As this agreement is considered for renewal in 2019, PDA's use of 333 Division Street will be incorporated. Throughout PDA's tenure, it has been solely responsible for management of its expenses, including a market-rate lease for office space. In recent years, due to a robust economy PDA's overall expenses have steadily increased; however, the organization's revenues have not seen a commensurate increase. With the City building at 333 Division Street now vacant, the timing is financially advantageous for PDA to enter into a use agreement with the City to locate the PDA office in a central downtown location. City staff and PDA Board of Directors are in agreement on a draft use agreement for the City Council's review and approval (Attachment 1). As defined in the draft use agreement, after three months of no payments to allow the PDA to recoup expenses, beginning on March 1, 2019, the PDA would pay a monthly rent of$974 based on $1.00 per square foot for 974 square feet of RBA (rentable building area) through December 2