Art Center Lease: Council Splits Their Votes
November 16, 2020 on a first reading, the Piedmont City Council split their votes on extending a $1 per year lease for seven more years to a private organization, Piedmont Center for the Arts, of Piedmont’s property at 801 Magnolia Avenue.
For several hours more than a dozen speakers testified for and against the proposed lease extension of the 801 Magnolia building. The current $1 per year lease will expire in June 2021.
Mayor Bob McBain, whose term on the Council is ending and who sets the agenda, noted he had promised the Arts Board and others, he would have a vote on the lease extension of the Piedmont Center for the Arts. McBain acknowledged he and City Administrator Sara Lillevand had been meeting with the Art Center Board for months and in August he had informed others, including Lillevand, there were 3 votes on the City Council in favor of the lease extension.
With no publicity or public notice by the City, the matter was addressed favorably primarily by the Board of the Art Center. Other speakers concerned about the lease noted the lack of public input and need for alternatives to the problematic proposed lease.
All speakers supported use of the facilities for the arts while offering suggestions to protect the City’s interests and increase community involvement.
At the close of the public hearing and Council discussion, Mayor Bob McBain preempted the other Council members and made a motion to approve the lease extension. Vice Mayor Teddy King seconded his motion. Council member Betsy Andersen, who was the 3rd Yes vote, asked that the term of the lease be changed from 10 years to 7 years.
Council member Jen Cavenaugh made a substitute motion seconded by Council member Tim Rood to table the matter in order to allow additional information based on questions and concerns plus more time for public input prior to approving the first reading of the proposed long-term lease of the property. McBain, Andersen, and King voted against the motion, and it failed.
McBain and King’s motion was approved by Andersen, McBain and King gaining a first reading to extend the lease for 7 years. Rood and Cavenaugh voted no.
The matter will return in December, or later, to the Council after a new Council is seated in December. McBain will have be termed out of office and his seat will be filled by Conna McCarthy on December 7, 2020. Council member Jen Cavenaugh reelected to a second term on the Council will serve for another 4 years. Council members, King, Rood, and Andersen will remain on the Council for two more years.
Some issues raised and not resolved prior to the Council approving the first reading of the lease were:
- Why wasn’t the lease extension publicized in local media to gather public input?
- How much more would it cost the City to operate the Center?
- What is the financial condition of the Art Center, Inc.?
- Who controls how the property can be used?
- What is the value to the City of the property?
- Why are Art Center Board minutes and financial information not provided to the city regarding income and users?
- Why are arts groups and other community organizations turned away in preference for commercial business activities?
- How can revenue from the Center foster arts in the community?
- The City recently stated it needed more money on two recent ballot measures. Why is the Art Center revenue stream of hundreds of thousands of dollars not considered a desired revenue source?
- What is the status of the IRS 501C3 qualification given recent information on the Art Center?
- Why are there terms in the lease that do not favor the taxpayers and City of Piedmont?
- What information is available on cost-effective use of the building?
- How can a private organization lease public property and then sublease to a commercial entity?
- Why is the Arts Board allowed exclusionary control of the property and not include all segments of the community?
- Why isn’t the building fully utilized?
- Can conflicts between commercial uses, recreation classes and art shows be resolved?
- What are the CEQA issues raised by a resident who received short notice?
- Will the new high school theater offer superior performance space?
- Have parking demands been considered?
- Where is the sub-tenant commercial lease?
Those satisfied with the lease extension spoke to:
- Prior improvements made to the building.
- Successful programs of music and art for Piedmont and the wider community.
- Continuing benefit to the City at little cost.
- Grandfathering the commercial newspaper sub-tenant lease
- Expanding programs
- Use by top artists
- Volunteer commendation for a successful operation.
The Lease Extension approved by 3 council members is linked below:
To your issue list I would add did Council authorize the opening of negotiations on the 801 lease? And if so, was Council apprised of negotiations over the past several months? Based on published agendas, the lease was not a matter of closed session discussions over the last several months.
To Garrett’s point, if a lease extension was not discussed in closed session, how did Mayor McBain know that there were 3 votes given the Brown Act’s restrictions on Councilmembers discussing City actions not in public session?