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