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