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HomeMy WebLinkAboutResolution No. 4846 RESOLUTION NO. 4846 A RESOLUTION AUTHO~ZING EXECUTION OF LEASE OF KAUFMAN CENTER TO EMERALD EMPI~ COUNCIL ON AGING. The City Council of the City of E-agene finds that: A. Emerald Empire Council on Aging is a nonprofit entity formed in 2003 for the purpose of continuing and e service programs for seniors that were formerly sponsored by Lane Community College at the City-owned building known as the Kaufman Senior Center. B. In August 2003, the City Cotmcil adopted Resolution 4773, which authorized the City Manager to lease the Kaufh~an Center to Emerald Empire Council on Aging for an initial tema ofone year for $1.00, with an option to renew the leaSe for a second year for $i.0(5, depending on outcomes achieved. The City and the Emerald Empire Council on Aging entered into the lease. Resolution 4773 also authorized the City Manager, ir~ his discretion~ to ;enOw the lease for up to five more years at a rate determined to be the fair market rental value. C. The use of the Kaufman Senior Center by Emerald Empire Council on Aging benefits the City by providing needed accessible senior services, recreation and a seniors~ communiLv cemer within the Jefferson Westside neighborhood. D. Despite the success of its programs and progress in the operation of the Kaufman Senior CenteL Emerald Empire Council on )[ging is not Yet able to pay fair market rental value for the lease. E. The City Manager has determined that there is a limited market for rental of the building and that determining a precise market value for a lease of the building is not feasible at this time. The City Manager has recommended entering into a new lease with Emerald Empire Council on Aging on terms that will require steady increases in rent. F. The City Manager proposes to lease the Ka-ufmma Senior Center to Emerald Empire Council on Aging at a rental rate that is greater than under the prior lease but is still tess than fair market value. The Basic Rent may increase each year during the term of the lease, but the monthly rent may not exceed an annual amount ors 10,000 if the facilityis providing services and activities to senior citizens. G. The Kaafman Senior Center has not been declared surplus property and it not sub~iect to a development plan. Resolution- 1 H~ Under Section 2.872 of the Eugene Code, 1971 the City Manager has authority to present a proposal for the disposition of real property that is not within a development plan, that has not been declared surplus property and for which no other procedure is specified in the Code or a Council-approved intergovernmental agreement to the City Council for its action. The City Manager has requested that the Council authorize him to enter into a lease as described in Recital F with Emerald Empire Council on Aging. The City Council specifically finds that the use of the Kaufman Senior Center by Emerald Empire Council on Aging as a center for support services, recreation, and as a community center for seniors will result in a substantial benefit to the City that justifies leasing the property at less than fair market value. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal Corporation of the State of Oregon, as follows: Section 1. Based on the above findings, which are hereby adopted, and pursuant to Section 2.872 of the Eugene Code, 1971, the City Manager is authorized to execute on behalf of the City a Lease Agreement with the Emerald Economic Council on Aging for the Kaufman Senior Center. The rent may be less than fair market value, but it should increase each year during the five-year lease term; contribute substantially toward regular maintenance costs; and include a portion of any revenues exceeding $1000 per month that the lessee receives from subleases. During the lease term the City will have no obligation to make capital improvements to the property, and the City's obligation to repair and maintain the premises shall be subject to the availability of budgeted funds derived from the Kaufinan Trust~ The lease shall contain such other terms and conditions as are agreed to by the City Manager and are consistent with this Resolution. Section 2. The City Recorder is requested to forward a copy of this Resolution to the Emerald Empire Council on Aging. The foregoing Resolution adopted the 18th day of July, 201)5. Resolution - 2