TO: Honorable Mayor & Members of the North Port Commission
FROM: A. Jerome Fletcher II, ICMA-CM, MPA, City Manager
TITLE: Discussion and Possible Action Regarding Formal Commission Approval of the Facility Lease Policy for City-Owned Facilities Including Selection of a Set Discount Based on Market Value.
Recommended Action
Discussion and possible action regarding formal Commission approval of the Facility Lease Policy for City-owned facilities including selection of a set discount based on market value.
City Commission Options
Option 1: Formal Commission approval of the Facility Lease Policy for City-owned facilities using a set 10% discount based on market value.
* Pros: Allows rental rates to reflect current market conditions while maintaining consistency through a standardized discount, potentially maximizing revenue while supporting public-purpose tenants.
* Cons: Results in reduced lease revenue, approximately 10% below market value, which may impact the City's ability to fully recover costs or maximize asset value.
Option 2: Formal Commission approval of the Facility Lease Policy for City-owned facilities using a set 20% discount based on market value.
* Pros: Allows rental rates to reflect current market conditions while maintaining consistency through a standardized discount, potentially maximizing revenue while supporting public-purpose tenants.
* Cons: Results in reduced lease revenue, approximately 20% below market value, which may impact the City's ability to fully recover costs or maximize asset value.
Option 3: Formal Commission approval of the Facility Lease Policy for City-owned facilities using a set 30% discount based on market value.
* Pros: Allows rental rates to reflect current market conditions while maintaining consistency through a standardized discount, potentially maximizing revenue while supporting public-purpose tenants.
* Cons: Results in reduced lease revenue, approximately 30% below market value, which may impact the City'...
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