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I Item 9 i. GirrcoyNpii REPORT ** mm Meeting Date: June 23,2026 General Plan Element: Economic Development General Plan Goal: Manage land uses to enhance economic development while protecting neighborhoods. ACTION Little Red School House Lease Adopt Resolution No. 13652 authorizing Contract No. 1990-122-COS- A3, an amendment to the lease with Scottsdale Historical Society, Ihc. for use of the Little Red School House property at 7333 Scottsdale Mall. BACKGROUND The purpose of this action is to approve an amended Lease Agreement between the City and the Scottsdale Historical Society Inc. for use of the Little Red School House at 7333 Scottsdale Mall. On July 1,1991, City Council authorized a lease with the Scottsdale Historical Society, a non-profit organization, to occupy the Uttle Red School House. The lease required the School House to be open to the public and operated as the Scottsdale Historical Museum. The lease was amended in 1997 related to utility payments, and admission fees subsequent amendment in 2018 was related to maintenance responsibilities. The Lease has been extended several times, the most recent extension ends on June 30, 2026. ANALYSIS & ASSESSMENT In 2025, the Society welcomed more than 21,000 visitors. The museum hosted and participated in eight events or activities as well as multiple featured exhibits throughout the year. Over 60 volunteer docents worked 2,258 hours, welcoming visitors and sharing stories and facts about Scottsdale history. The Scottsdale Histprical Society provides an annual financial and status report demonstrating their accomplishments, events, and activities. The purpose of the amendment is to renevy the agreement for an additional five-year period and to provide for reduced operating hours for the museum. The amendment will allow any future five- year renewals to be approved and executed administratively by the City Manager. The Scottsdale Historical Museum will be open as follows: • September (beginning the second Wednesday in Septernber) and May, Wednesday through Saturday, 10:00 a.m. - 2:00 p.m., Sunday, noon - 4pm. Action Taken________________ ;_________________________________________ Blueink Bundle ID; 8qQ0IWZe4j City Council Report | Little Red School House Lease • October through April, Wednesday through Saturday, 10:00 a.m. - 5:00 p.m., Sunday, noon - 4pm. The Scottsdale Historical Museum will be closed for three months in June, July and August for redesigning or adding exhibits. In addition, the museum will be closed for the following holidays: Thanksgiving (Thursday and Friday), Christmas Eve afternoon, Christmas Day, New Year's Eve afternoon. New Year's Day, Good Friday, and Easter. The original lease agreement states that the hours of operation will be Wednesday through Saturday, 10:00 a.m. to 5:00 p.m., Sunday, noon to 4:00 p.m.; therefore, this amendment represents a reduction in hours of operation for the "shoulder season" months of September and May. This reflects decreased tourist visitation and docent availability during those months. There is a public purpose for the establishment of the Little Red School House operated as the Scottsdale Historical Museum providing citizens of Scottsdale and visitors with a cultural awareness of the history of Scottsdale and the Southwest. RESOURCE IMPACTS Staffing, Workload Impact No additional staffing or other resources are anticipated as a result of this lease agreement. STAFF RECOMMENDATION Adopt Resolution No. 13652 authorizing Contract No. 1990-122-COS-A3, an amendment to the lease with Scottsdale Historical Society, Inc. for use of the Little Red School House property at 7333 Scottsdale Mall. RESPONSIBLE DEPARTMENT(S) Economic Development & Tourism STAFF CONTACT(S) Kevin Burke, Senior Director Economic Development & Tourism, 480-312-2533, KBurke@scottsdaleaz.gov Page 2 of 3 Blueink Bundle ID: 8qQ0IWZe4J City Council Report | Little Red School House Lease APPROVED BY Kwi/ituirk 6/9/26 10-00 MST Kevin Burke, Senior Director Economic Development & Tourism Date 480-312-2533, kburke(ascottsdaleaz.gov ScotSdk 6/9/26 10:16 MST Scott Selin, Budget Director Date (For Financial Policies Compliance and Budget Appropriation) 480-312-2603 sselin(S)scottsdaleaz.gov Judy Doyle, Deputy City Manager 480-312-2691, idovle(S)scottsdaleaz.gov m<;t Date Greg Caton, City Manager 480-312-7759, gcaton(5)scottsdaleaz.gov 6/9/26 11:07 MST Date ATTACHMENTS 1. Resolution No. 13652 2. Agreement No. 1990-122-COS-A3 Page 3 of 3 Blueink Bundle ID: 8qQ0IWZe4j RESOLUTION NO. 13652 A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE, MARICOPA COUNTY, ARIZONA, AUTHORIZING CONTRACT NO. 1990-122-COS-A3, THE THIRD AMENDMENT TO THE LEASE WITH SCOTTSDALE HISTORICAL SOCIETY, INC., FOR THE USE OF THE PROPERTY AT 7333 SCOTTSDALE MALL. WHEREAS, the City is the owner of the property at 7333 Scottsdale Mall; WHEREAS, the City leased the property to the Scottsdale Historical Society on July 1, 1991, to be operated as the Scottsdale Historical Museum; WHEREAS, the lease has been amended twice and extended several times for additional five-year terms as allowed by the lease; WHEREAS, the most recent extension ends on June 30, 2026, and the parties desire to amend the lease for another five-year term. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Scottsdale, Maricopa County, Arizona, as follows; Section 1. The City Council authorizes and directs the Mayor to execute on behalf of the City of Scottsdale, Contract No. 1990-122-COS-A3, a lease with Scottsdale Historical Society, Inc., for the use of the property at 7333 Scottsdale Mall. PASSED AND ADOPTED by the Council of the City of Scottsdale, Maricopa County, Arizona this_____day of_______________________ , 2026. ATTEST: CITY OF SCOTTSDALE, ah Arizona municipal corporation Ben Lane, City Clerk APPROVED AS TO FORM: V., J Luis E. Santaella, City Attorney Lisa Borowsky, Mayor 19213296 ATTACHMENT 1 Contract 1990-122-COS-A3 THIRD AMENDMENT TO LEASE THIS THIRD AMENDMENT TO LEASE is made and entered into this____ ^day of ________, 2026, by and between the CITY OF SCOTTSDALE, a municipal corporation (“Lessor”), and SCOTTSDALE HISTORICAL SOCIETY, INC., an Arizona non-profit corporation (“Lessee”). RECITALS A. Lessee is the lessee and Lessor is the lessor under that certain Lease (the “Lease”) dated July 1,1991 of premises consisting of a certain building (the “Schoolhouse”) located at 7333 Scottsdale Mall, commonly known as the “Little Red Schoolhouse”. B. The Lease requires that the Schoolhouse be operated and open to the public as the Scottsdale Historical Museum; C. The Lease was amended by the First Amendment to Lease in 1997, relating to reimbursements for utility payments and admission fees. D. The Lease was amended by the Second Amendment to Lease in 2018 to address maintenance responsibilities. E. F. June 30, 2026. The Lease allows five-year extensions upon mutual agreement of the parties. The Lease has been extended several times and the most recent extension ends on G. The parties now desire to fiirther amend the Lease to change the required hours of operation, extend the Lease for an additional five-year period and allow future extensions to be done administratively. NOW, THEREFORE, in consideration of the foregoing, and the covenants and requirements contained in this Third Amendment to be kept and performed by Lessee, and other good and valuable consideration. Lessor and Lessee agree as follows: TERMS 1. The Recitals which appear above are made a part of this Third Amendment by this reference. 2. Subsection 2 of the Lease is hereby amended by deleting existing language and inserting the following: Attachment 2 19093127 Page 1 of3 Contract No. 1990-122-COS-A3 2. Term. (a) The term of this Agreement shall be for five years beginning July 1,2026, and ending June 30,2031. The Lease may be renewed for additional five-year periods upon mutual, written agreement of the Lessor and Lessee. Renewal of the Agreement may be executed administratively by the City Manager or designee. 3. Subsection 4(b) is hereby amended by deleting existing language and inserting the following: 1. The Scottsdale Historical Museum will be open as follows: September (beginning the second Wednesday in September) and May, Wednesday through Saturday, 10:00 a.m. - 2:00 p.m., Sunday, noon - 4:00 p.m. October through April, Wednesday through Saturday, 10:00 a.m. - 5:00 p.m., Sunday, noon - 4:00 p.m. 2. The Scottsdale Historical Museum will be closed in June, July, August and the following holidays: Thanksgiving (Thursday and Friday), Christmas Eve afternoon, Christmas Day, New Year’s Eve afternoon. New Year’s Day, Good Friday, and Easter. 4. Except as expressly stated herein, the remaining terms of Lease shall remain unaffected by this Third Amendment. IN WITNESS WHEREOF the parties have executed this Third Amendment as of the date first written above. LESSEE: SCOTTSDALE HISTORICAL SOCIETY, an Arizona non-profit corporation A By: (N^S: vfoL.rftyy. "So Title: President T 19093127 Page 2 of3 Contract No. 1990-122-COS-A3 ATTEST: Ben Lane, City Clerk APPROVED AS TO FORM: CITY OF SCOTTSDALE, an Arizona municipal corporation By: __________________________ Lisa Borowsky, Mayor OFFICE OF THE CITY ATTORNEY Luis E. Santaella/lnterim City Attorney By: William Hylen, Deputy City Attorney 19093127 Page 3 of 3 Contract No. 1990-122-COS-A3