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Item No. 23 <br />memorandum <br />TO: Mayor & City Council <br />FROM: John Godwin, City Manager <br />SUBJECT: BUILDING AT FAIRGROUNDS <br />DATE: August 5, 2015 <br />BACKGROUND: I met with Rita Haynes on July 15 to discuss the building at 1875 Fitzhugh. <br />The building was originally built to serve as a bingo hall, and for many years was a good <br />moneymaker for the association, helping to fund their fair activities. In recent years, they were <br />unable to compete for customers who preferred going to the nearby casino, so they shut down <br />bingo operations. Since then they have offered the building for rentals and it does stay relatively <br />busy, breaking even most years on direct M &O costs. Approximately $25,000 is owed by the <br />association, which they do plan to pay completely in early November, after which a transfer to <br />the city could occur. Rental of the building is not part of the fair's core function, and it is <br />physically located far away from all the other fair buildings. It does not lose money, but neither <br />does it make any, so the association would like to divest itself of the facility. <br />STATUS OF ISSUE: The building was built in 1997 and appears to be in overall good <br />condition, except for a concrete floor that needs work. There are two basic rooms (5 100 SF and <br />1500 SF), plus restrooms, storage, and a kitchen. M &O costs have been kept low by using <br />community service workers; the city would likely have to hire staff or a contractor for <br />maintenance, and someone would need to manage reservations and other details. We would also <br />have to replace tables (50) and chairs (200), which the association plans to keep, and at some <br />point in the future would need to make larger investments. Sally Wright previously expressed an <br />interest in the building as a way to expand recreation offerings (which would be nice), but we <br />have had no funding for new programs or recreation staff in light of the many other priorities that <br />remain unfunded. <br />BUDGET: Unknown, but unfunded. <br />RECOMMENDATION: Do not pursue building acquisition. <br />