TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Direction Regarding the Draft Facility Lease Policy for City-Owned Facilities.
Recommended Action
Discussion and possible direction regarding the draft Facility Lease Policy for City-owned facilities.
Background Information
At the June 6, 2022, City Commission Workshop, Chuck Speake, Public Works Director, provided a presentation of a proposed draft City facility lease policy including an overview of standard terms, procedures, and requirements.
During the June 6, 2022, conversation the City Commission discussed section B5 of the draft policy which stated:
The City will not enter into leases or property use agreements at below market rates to organizations engaged in political activities or to religious organizations that would use the leased premises to promote sectarian, political or religious purposes.
Following discussion, the Commission provided the following consensuses:
Ø For organizations to be an established 501(c)(3) in order to be placed into the contract.
Ø To direct the City Attorney to conduct a legal review of Section B5 and to direct the City Manager and Staff to research the parameters of the religious organization's services within the building.
Department of Public Works staff coordinated with the City Attorney’s Office for review of the proposed language in section B5. Following review, the City Attorney’s Office has recommended that this language be removed and assisted with redrafting the proposed policy to avoid potential issues.
The current proposed Facility Lease Policy presented for City Commission consideration outlines that City facilities will be leased at Market Value, as calculated by an appraisal or via staff by evaluating market conditions and leasing fees for similar properties, unless the organization is a 501(c)3 non-profit or a government entity and the City Commission approves a discounted lease fee. If so approved, a 501(c)3 non-profit organization will receive a 50% discount from Market Value and a government entity will receive a 100% discount from Market Value.
Additionally, according to the current proposed Facility Lease Policy, leases for City-owned property will be structured similar to common apartment or business suite leases in which the tenant is responsible for all maintenance, including cleaning of interior leased space. The tenant will be responsible for payment of utilities and similar for their use of the space. The City will act as a landlord and will maintain common areas, mechanical systems and the overall building envelope.
Strategic Plan
Infrastructure & Facilities Integrity
Financial Impact
If approved, this policy will assist with the development of future leases and lease fees.
Procurement
Not applicable.
Attachments:
1. Draft Facility Lease Policy
2. June 6, 2022 Draft Facility Lease Policy
Prepared by: Tricia Wisner, Assistant Director of Public Works
Department Director: Chuck Speake, Public Works Director