With a private donation from Joyce Raley Teel and a public donation from the City of Sacramento, the old Fremont School building on "N" Street would become the E. Claire Raley Studios for the Performing Arts.
The old brick building provides 47,000 square feet of space.
Capital Stage, the Sacramento Children's Chorus, and the Sacramento Ballet Company are among those who have agreed to rent space.
Caty Solace is executive director of the ballet.
"In this space, we'll actually be able to grow our school which will grow our income which will support the artistic product on a professional level as well," says Solace.
Saara Burga is executive director of the Brazilian Center For Cultural Exchange Of Sacramento. She says the organization already knows which space it will rent.
"Actually, we are going to be in the cafeteria. And the reason is its the only place they have a kitchen in the whole building. And we're planning to have classes -cooking classes," she says.
Members of the Raley Studios board of directors say 75-percent of the building is already rented. Remaining space could be filled by the Sacramento Philharmonic and Sacramento Orchestra.
The Sacramento City Unified School District agreed to lease the building to the city for $1 a year for 40 years. In exchange, district students will have opportunities to study with local artists.
The Fremont School was built in 1921 and closed three years ago. An agreement between the city and the Raley Studios board of directors would fund a $6.5 million renovation project. The Sacramento City Council must approve the City's $5 million contribution.
The studios could be ready for tenants by the end of this year.