HomeMy WebLinkAbout2026-05-12 - AGENDA REPORTS - SANTA CLARITA STUDIOS CORP LEASE AGMT AMENDAgenda Item• 12
CITY OF SANTA CLARITA
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AGENDA REPORT
CONSENT CALENDAR
CITY MANAGER APPROVAL:
DATE: May 12, 2026
SUBJECT: LEASE AGREEMENT AMENDMENT WITH SANTA CLARITA
STUDIOS CORPORATION
DEPARTMENT: Neighborhood Services
PRESENTER: Mariela Delgado
RECOMMENDED ACTION
City Council:
Authorize an amendment to the existing lease agreement with Santa Clarita Studios
Corporation to provide a three-month rent deduction during the first year of the five-year
renewal term.
2. Authorize the City Manager or designee to execute all contracts and associated documents,
subject to City Attorney review.
BACKGROUND
In 2016, the City of Santa Clarita (City) entered into a public -private partnership with Santa
Clarita Studios Corporation (Tenant) for the use of approximately 3.5 acres located in the Round
Mountain Property for parking purposes. This arrangement was established to meet the parking
needs of the film studio at the time. The original lease term commenced on July 1, 2016, for a
period of ten years, with provisions allowing for two additional five-year extensions at the City's
sole discretion.
The Tenant has requested to exercise its first five-year extension option, subject to an annual
Consumer Price Index (CPI) adjustment, in accordance with the lease terms. Additionally, the
Tenant shared how changes in the film industry have impacted the company. The City is aware
of these industry trends and their local impact. Since 2022, film permits issued in the City have
decreased by more than 34 percent. For these reasons, staff finds it fair and prudent to amend the
agreement to provide a temporary rent waiver in the form of a three-month deduction during the
first year of the renewal term. This approach allows for flexibility at the outset of the extension
period while maintaining the City's commitment to supporting the partnership and a local
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business that has remained committed to boosting the Santa Clarita economy.
Staff recommends this temporary rent waiver as it supports tenant retention and promotes
continuity of operations at the site.
ALTERNATIVE ACTION
Other actions as recommended by the City Council.
FISCAL IMPACT
An estimated amount of $66,810 will be received in Fiscal Year 2026-27, reflecting the first year
of the renewal and accounting for the three-month deduction to the General Fund (100-431107).
Revenue in subsequent years will be adjusted annually in accordance with the Consumer Price
Index (CPI), as specified in the lease agreement.
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