Item 2F: Kaufman Center Lease - Laserfiche WebLink

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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Adoption of Resolution 4846 Authorizing Lease of Kaufman Center to Emerald Empire Council on Aging Meeting Date: July 18, 2005 Agenda Item Number: 2F Department: Facility Management Staff Contact: Glen Svendsen www. eugene-or, gov Contact Telephone Number: 682-5008 ISSUE STATEMENT In August 2003, the City Council adopted Council Resolution 4773 which allowed the private, non- profit Emerald Empire Council on Aging (EECA) to provide senior services at the Kaufman Center for up to two years at $1.00 per year, with future renewal at the discretion of the City Manager for a term of up to five years "at a rate determined to be fair market rental value." The City Manager is prepared to enter into a new lease with EECA for a five-year term, which will require EECA to increase its payment for use of the building over the term of the lease. However, the proposed terms continue to be below fair market value, and the council is requested to adopt a revised resolution which will enable the City Manager to recover less than fair market value for lease of the Kaufman Center. BACKGROUND In August 2003, the City Council adopted Council Resolution 4773 which allowed EECA to provide senior services at the Kaufman Center at $1 per year, with an initial one-year term renewable for a second year based upon a review of the outcomes achieved. The resolution provided for renewal of the lease for a period of up to five years, at the discretion of the City Manager and "at a rate determined to be fair market rental value". Resolution 4773 is included as Attachment A. The 2003 resolution states that the council found the services provided by EECA to be of value to the City, and that the initial lease terms provided a fair return to the City for the use of the center. However, the council also made it clear during the discussion on the resolution that EECA was expected to begin contributing to the major maintenance of the center after the initial two-year establishment period. The EECA is nearing the end of its lease with the City for use of the Kaufman Center. The existing lease was extended until September 1, 2005, to allow the council to consider the proposed new lease terms. EECA wants to continue providing services in the Kaufman Center but is not yet financially able to pay either market rent or the full cost of maintenance. Rather than terminating EECA's use of the Kaufman House at this time, the City Manager is willing to enter into a new lease with EECA which includes a subsidized, but increasing, payment for use of the building over the term of the lease. The new lease is included as Attachment B. L:\CMO\2005 Council Agendas\M050718\S0507182F.doc