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 the Draft Facility Lease Policy for City-Owned Facilities.
Recommended Action
Discussion and possible action regarding the draft Facility Lease Policy for City-owned facilities.
City Commission Options
Option 1: Direction to bring back the Facility Lease Policy for formal Commission approval using a set price per square foot for all leased property.
* Pros: Provides a uniform and predictable rental rate structure that is easy to administer and apply consistently across all City-owned facilities, regardless of location or use
* Cons: Limits the City's ability to account for variations in market value conditions, property desirability, or facility-specific factors that may justify higher or lower lease rates
Option 2: Direction to bring back the Facility Lease Policy for formal Commission approval using a set 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: Requires additional staff effort and analysis to determine and document market value, which may increase administrative complexity and processing time for leases
Background Information
At the December 2, 2024 City Commission Workshop, the Commission reviewed preliminary recommendations for a facility lease policy, including approaches to valuing City-owned facilities and general lease terms. During that discussion, the Commission requested additional information regarding existing lease terms and associated costs to support the development of a more consistent and transparent approach to establishing rental rates for City-owned property.
In response, staff presents the proposed Facility Lease Policy that provides two options for Commission consideration...
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