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Commission reviews San Pasqual Stables lease; questions on capital funds, scholarships and historic residence
Summary
Commissioners reviewed the stables’ lease and annual reports and asked staff for confirmation of capital fund balances, compliance with ‘public access’ lease terms, the nature and value of scholarship programs, and the condition and responsibility for a historic residence on the stables property.
The Community Services Commission discussed the San Pasqual Stables lease agreement April 14 and asked staff to gather documentation on compliance with public-access provisions, capital-improvement funds, and maintenance of a historic residence on the property.
Why it matters: the stables operate on city-owned property under a concession agreement that pays the city a percentage of revenue (6% per the current agreement) plus a monthly capital-improvement contribution. Commissioners asked whether the city audits the concessionaire’s financials, how many of the 90+ stalls are rented to nonresidents, and whether the concessionaire’s scholarship/sweat-equity arrangements meet the contract’s stated public-program obligations.
Key issues raised: - Revenue share and capital funds: Commissioners noted the 6% rent and an additional capital-improvement contribution (recorded as roughly $7,400 in an example month) and asked staff to confirm how those capital funds are tracked and whether receipts are being reserved for stables work or moved into the general fund. Staff said the capital-improvement funds are routed to Finance and that public-works projects must follow prevailing-wage and RFP procedures, which has delayed some improvements.
- Program obligations and scholarships: The lease requires the concessionaire to run guided rides, youth outreach, lessons and summer camps in coordination with the city. Commissioners said the operator’s “scholarship” language in public materials appears closer to sweat equity or internship arrangements; commissioners asked staff to clarify the scholarship count and dollar values and whether programs described in the lease (youth outreach, senior programs, scout collaboration) are actually occurring.
- Historic residence: Commissioners flagged the historic house on the stables property and asked whether restoration obligations in the lease have been satisfied. Staff confirmed that city staff perform twice-yearly site checks but did not have documentation immediately available; staff agreed to verify the last inspection, the scope of required repairs under Exhibit L of the lease and whether the concessionaire completed required items.
- Compliance and next steps: Commissioners asked staff to request a current accounting and annual reports, confirm capital-fund balances and request documentation showing fulfillment of the lease’s public-program obligations. The commission also suggested inviting a stables representative to a future meeting to answer questions about operations, boarding, program schedules, scholarships and maintenance planning.
Ending: Staff said they will request the concessionaire’s financials, a capital-fund accounting, the most recent inspection checklist and a summary of public programs described in the lease for review and recommended that the commission pass its recommendations to City Council as part of future lease negotiations before the lease expires in 2029.
