15-LAMAR COUNTY CHAMBER OF COMMERCE'S OLD SANTA FE DEPOT LEASECITY 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
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Z O
y'I'D Actual
$
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Acct. Name
Acct. Number
FISCAL NOTES:
City of Paris Revised 6/20/12
54