14 - Event Center - Donation of Building

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Ms. Hughes is scheduled to be present tonight to answer any questions you might have. BUDGET: If this were to be approved at a future council meeting, this would terminate the lease which equates to $14,400.00/year. Supreme All, Inc. would be responsible for all other expenses tied to this transaction other than City's review and administration tied to this effort. IMIONLIS No official action necessary other than to indicate one of the following: 1. Proceed with developing a deed (following completion of a survey and plat) to donate the building and parking lot areas to Supreme All, Inc., to be brought back to the City Council at a future date, to be determined. 2. Request additional information prior to giving an indication as how to proceed. 3. Propose modifying the lease instead of donating the building. 4. Do not donate the building. 5. Pursue issuing notice to seek bids for the building. RECOMMENDATION: Staff do not have a recommendation other than if option #1 is chosen, we prepare an appropriate deed covering the requirements of Texas LGC 253.011. An alternative is to pursue seeking bids for the building. This might be the cleanest transaction possible vs. a perpetual deed restriction. Of course, some person or entity other than Supreme All might have the high bid. To make this route possible, the City could conduct, at its own expense, a survey and plat, after which, notice could be issued to seek bids. This would be the City Manager's preferred route for long term settling of this matter vs. a perpetual deed restriction that 1) must be monitored and 2) places restrictions on Supreme All's ability to conduct business at the facility and would make it difficult for Supreme All to sell the facility should it ever cease operations or outgrow the building. However, we will pursue whichever route the City Council prefers.