Advisory committee to open talks with Plaza de la Raza, proposes market benchmark and shorter base term

El Rancho Unified advisory committee members agreed May 5 to open discussions with Plaza de la Raza about renewing license agreements at two district sites, with staff proposing a market benchmark rent and a five‑year base term tied to performance milestones.

Mauricio Nunez, a representative attending for the district's leasing team, told the committee the team’s benchmark is the recent county lease and "we would be proposing we bring them both up to a dollar 56 a foot," which staff said would raise rents at the two sites from the current low rates to roughly market levels. Nunez said Plaza de la Raza has proposed about $1.1 million of work at the Maysland site and about $300,000 at Pio Pico, a combined investment of roughly $1.4 million "if we come to an agreement."

Why it matters: staff said the district must balance preserving program access for local students with a fiduciary duty to capture revenue from underpriced properties. Committee members repeatedly pressed for safeguards to avoid encumbering district property for a decade without clear community benefit.

Consultant Ruben Fruchis urged contract language that phases longer terms, recommending a ratchet and enforcement tied to enrollment outreach: "The ratchet allows you to go up a year or two every so often to get to the 10 years," he said, and he recommended evaluating the tenant's cooperation with district enrollment outreach when deciding extensions. Staff proposed a five‑year base term with milestone benchmarks that could trigger an extension to a longer term if the tenant performs. If the district terminates for reasons other than tenant default, staff proposed limited rent‑credit amortization rather than full reimbursement.

Committee members asked for Plaza de la Raza’s bylaws and financial statements before any firm offer. Staff said the initial outreach will be informational — "we're not making them an offer," a staff member said — and that any negotiated terms would be brought back to the committee and then to the board for approval. Members also discussed shifting ordinary maintenance to the tenant and using rent credits for tenant‑paid repairs; staff cited a prior Aubrey/Gunn agreement that used roughly $76,000 in rent credits to cover deferred maintenance.

What’s next: staff will request the tenant's financials and bylaws and report back. The committee did not make a formal recommendation to the board at the meeting; members directed staff to open transparent, documented talks and to return with proposed contract terms and measurable performance benchmarks before asking the board to approve a final agreement.