15-LAMAR COUNTY CHAMBER OF COMMERCE'S OLD SANTA FE DEPOT LEASE

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CITY COUNCIL AGENDA ITEM BRIEFING SHEET Submittal Date: 7/17/12 Originating Department: Presented By: Agenda Item No.: Council Date: 7/23/12 City Manager John Godwin 15. RECOMMENDED MOTION: Not an action item POLICY ISSUE(S): Fiscal BACKGROUND: For a number of years the Lamar County Chamber of Commerce has leased the old Santa Fe Depot building from the city for $1.00 per year. The chamber in turn leases the facility to the PEDC for $60,000. It is my understanding that this lease dates back to a time when the chamber and the corporation operated as more or less a single entity, with a common director. The lease is set to expire in August and the PEDC has notified the chamber that it does not intend to renew. This would free the city up to lease the building directly to the PEDC. Doing so would eliminate some potential constitutional issues, but would also have the negative effect of reducing net income to the chamber, which estimates it expends approximately $45,000 per year in operating and maintenance costs. Staff needs direction and feedback from the council as to how next to proceed. If the council wishes us to eliminate the lease with the chamber, which has already agreed in principle to the change, we should decide if we want to renew with the PEDC for $1.00 or for $60,000, or even if the city wants to consider other uses for the facility. PEDC director Steve Gilbert has for example, suggested that their staff could relocate to the incubator facility on Clarksville. BOARD/COMMISSION RECOMMENDATION: EXHIBITS: ACTION: BUDGET INFO: ❑ Financial Report ❑ Minute Order Expense $ ❑ Department Report ❑ Resolution Budgeted Amt. $ ❑ Presentation ❑ Ordinance ❑ P bli H i h Z O y'I'D Actual $ u ear c ng t er Acct. Name Acct. Number FISCAL NOTES: City of Paris Revised 6/20/12 54