California Natural Resources Agency Grant for the School of Arts and Culture at Mexican Heritage Plaza.

The City Council is asked to approve the acceptance of a $2,000,000 grant from the California Natural Resources Agency (CNRA) for the School of Arts and Culture at Mexican Heritage Plaza (SOAC). This funding, secured through a state budget trailer bill (SB 105) signed on September 17, 2025, is intended for the planning and construction of the "La Placita" project. The City will act as a pass-through entity, entering into an agreement with CNRA and a subsequent agreement with SOAC to disburse the funds. The funds must be fully expended by March 1, 2028. The grant will support the build-out of a Black Box Theatre and a Community Café within the La Placita project, which aims to expand access to arts, culture, wellness, and economic opportunity. The City Manager's Office of Economic Development and Cultural Affairs will administer the grant, with reimbursements from CNRA expected within six to eight weeks of submission.