That the City Council approve and authorize the City Manager to execute an updated lease agreement with the La Habra Art Association. 

In 2021, the City purchased an existing commercial building at the property located at 106 East First Avenue. The plan for this acquisition included a remodel and tenant improvements to accommodate a new space for the La Habra Art Association and the La Habra Woman's Club to relocate from their current location in the City's Community Center expansion building. Once complete, this transition will allow the City to repurpose the Community Center expansion building into a dedicated Senior Center. Furthermore, the move by these two local non-profit organizations to the newly renovated City-owned building is in support of the City's plans to continue developing an Arts and Museum District in the core of the City along Euclid Street. This new location will be in close proximity to the La Habra Children's Museum and the La Habra Depot Theater.

The La Habra Art Association produces art exhibits, hosts music and art events, and offers adult classes/workshops. The La Habra Art Association had a dedicated representative serve on the City's Centennial Committee in 2025, and collaborated with the La Habra Woman's Club and local school districts to host the student art show as part of the year-long celebration. Over the past year, the La Habra Art Association partnered with the Community Services Department to co-host art and music programs for the active adult and senior program. The City and La Habra Art Association will collaborate on an Art in the Park event and work together to continue to promote the arts in the community. 

The updated lease agreement includes an initial two-year term from April 6, 2026, through April 6, 2028, and may be renewed in writing at least 30 days prior to the expiration date, for two additional five (5) year terms. The La Habra Art Association must be in compliance with all terms of the lease in order to qualify for a Renewal Term. The La Habra Art Association will pay rent to the City for the facility in the total amount of one dollar ($1.00) annually, due on September 1 of each year.

Under the terms of the proposed lease, and consistent with the City's existing lease agreement with the La Habra Art Association, the City will continue to pay for general landscape maintenance, utilities and weekly janitorial expenses. The La Habra Art Association will continue to pay for mandatory insurance coverage, taxes, possessory interest fees, internet connection service and any other expenses associated with the use of the facility.