Riverside Stem Education Center Project

CALIFORNIA STATE AUDITOR 27 Report 2025-122 | June 2026 Table 1 Several Key Lease Terms for the STEM Center are Comparable to the Lease Terms at Similar Institutions and UC Riverside STEM STUDENT STUDENT STUDENT STUDENT INTERNATIONAL CENTER UNIVERSITY HOUSING #1 HOUSING #2 HOUSING #3 HOUSING #4 PROJECT POLYTECHNIC (RIVERSIDE HIGH SCHOOL (PRIVATE (PRIVATE (PRIVATE (PRIVATE HIGH SCHOOL UNIFIED) PARTNER) PARTNER) PARTNER) PARTNER) Cal State Campus UC Riverside Cal Poly Pomona UC Riverside UC Riverside UC Riverside UC Riverside Fresno Student Student Student Student Description High School High School High School Housing Housing Housing Housing $1 $650,000 (one- Rent (one-time $0 $0 $842,000 $32,800 $304,000 time payment) payment) 50 years plus Duration two 10-year 40 years 40 Years 45 years 48 years 45 Years 35 Years extensions Is university approval of Yes Yes Yes Yes Yes Yes Yes design required? Is lessee responsible for additional fees Yes Yes Yes Yes Yes Yes Yes and operating costs? Does lessee fund government Yes* Yes Yes Yes Yes Yes Yes approvals, such as CEQA? Does university assume ownership of the Yes† Yes Yes Yes† Yes† Yes† Yes† building when the lease ends? Are both parties covered from Yes* Yes Yes No Yes No Yes liabilities? = Similar terms to the STEM Center are highlighted in blue. Source: STEM Center ground lease term sheets and other lease agreements. Note: University High School and the International Polytechnic High School included provisions in their leases that provide an opportunity for both parties to engage in good faith discussions about a possible extension two years before the lease expires. * These provisions are binding, meaning the district must comply with them regardless of whether a final ground lease is executed. † In addition to the university assuming ownership of the facilities when the lease ends, included in the UC Riverside agreements is an option for the university to require the tenant to demolish the buildings at their own expense.