Q&A
SCA's lease requirements and negotiation process for early childhood education sites
2:23:02
ยท
173 sec
Council Member Rita Joseph inquires about the School Construction Authority's (SCA) lease requirements and negotiation process for early childhood education sites. Cora Liu from SCA provides details on their standard practices and decision-making process.
- SCA's standard leases include a termination clause, which is disclosed during negotiations with landlords.
- The termination period can vary depending on the site and negotiation terms.
- SCA has been working to catch up on expired leases and is now planning further ahead for renewals.
- Lease renewal decisions consider factors such as rightsizing the system and matching seats with community needs.
- SCA employs licensed architects and engineers to evaluate the condition of spaces during lease negotiations.
- Capital investments are sometimes made to improve facility conditions.
- Decisions on lease renewals are made collaboratively between NYC Public Schools and SCA.
Rita Joseph
2:23:02
What are SCA's lease requirements that is negotiated on behalf of New York City Public School contracted early childhood education care program and describe the termination clause for those contracts and how do landlords of potential sites receive it and how does these impact programs ability to secure those sites?
Cora Liu
2:23:22
So our standard needs always include a termination, clause that is fully disclosed at the time of the negotiation with the NAT NORDS.
2:23:30
That period can can vary depending on the sites and the negotiation other terms with the NAT NORDS.
2:23:38
It is a standard practice in our our lease negotiation.
2:23:44
The landlords are fully aware and have been in full cooperation.
2:23:50
When we start as I mentioned, you know, we do start lease negotiation before the expiration date and since we have caught up with all the leases that expire when it when we inherit the portfolio, we're now moving forward with a longer time frame to plan ahead.
Rita Joseph
2:24:06
And how do you decide when to move forward on a lease renewal?
2:24:09
What does that look like?
2:24:11
What are the factors that makes allows you to make that decision to renew the lease?
Cora Liu
2:24:16
So again, we inherited portfolio.
2:24:18
We have a third of the lease size with expired lease.
2:24:22
Our priority at the point was to extend the needs, to ensure continuity and stability for the programs.
2:24:30
That does not necessarily work with, right, the new the new goal of rightsizing the system as well as nine c need with with our seats.
2:24:38
So we're we're here to support deputy chancellor's goal to to make sure all the seats are in the right place while serving all the providing seats to to kids where needed.
2:24:50
So we're having those ongoing conversations much earlier so that we can be planned and aligned in our work negotiating leases.
Rita Joseph
2:24:59
And does the landlord agree to the property issues?
2:25:02
Do they normally fix it, paint it?
2:25:04
Is that all on you before the providers are moved into those sites?
Cora Liu
2:25:08
Well, first of all, all those sites already have providers.
2:25:12
As part of our lease negotiation to extend the lease, we do have we do employ a team of licensed architects and engineers to very thoroughly evaluate this condition of the space.
2:25:23
As part of the negotiation, we would provide landlords a list of scope items for them to complete.
2:25:29
We want to make sure those spaces are well kept and safe and secure.
2:25:34
There are also sites where we have engaged in invested in capital dollars to improve the condition of these facilities, so that's all part of the needs negotiation process and effort.
Rita Joseph
2:25:46
And you have the final say to move forward on a lease renewal or that's a decision both New York City Public Schools and SCA We work together.
2:25:54
We work together.