Nov 12 2020
A controversial item has been placed on the November 16, 2020 Council Agenda…the lease of City property at 801 Magnolia Avenue, the Art Center. Agenda here.
The Council composition is soon to change based on the recent election of Conna McCarthy to replace Bob McBain on the City Council. Given the lease terms and controversy, questions have been raised regarding the need to act prior to the seating of the new Council, which will occur within days in early December 2020. The current Art Center lease does not end until June 2021.
With over six months left on the lease, a citizen asked, “What is the rush?” Others have called for a widely publicized community evaluation of the use of the City property, since one has never been undertaken.
Adding to the controversy, a proposed fee schedule for 801 Magnolia Avenue would not be developed and brought back to the Council until after the new lease agreement has been approved by the Council.
The staff report estimates the office space “market rate” rental at $50 per foot, by comparing it with the Veterans Hall office rental rate of $36 per square foot leased to the Piedmont Education Foundation, the local non-profit organization benefiting Piedmont schools. The reason to compare a rental rate for commercial entities with the rental rate charged to a local non-profit is questioned.
Commercial rental space in Piedmont is at a premium because of location and scarcity. Plus, the City property at 801 Magnolia Avenue includes two much-sought-after parking spaces.
A number of citizens would like the fee structure to be a part of the lease discussion, prior to approval of any lease. It has been proposed that the Recreation Department manage all use of the space to assure appropriate and full use of the property. The staff proposed agreement provides for City programs and events as well as private non arts-related rentals.
The building at 801 Magnolia Avenue was purchased with taxpayer’s funds. If income from the property were to be maximized, it has been estimated rental income from various uses could bring in over $200,000 per year.
- Who should manage the building?
- What purposes should the property be used?
- What use of this city property would be most beneficial for the community?
Opinion articles have been published on this site.
https://www.piedmontcivic.org/2020/11/04/opinion-city-owned-801-magnolia-building-should-be-run-by-the-city/
Opinion: Why Rush 801 Magnolia Lease?
Citizens have suggested various uses for the property. Some are listed below.
— a community library,
— senior center,
— Dress Best for Less, drop off site and marking room, benefits schools and Piedmont’s local recycling goals,
— counseling/ tutoring space,
— recreation programs,
— meeting site,
— rentals for weddings, book reviews, receptions, celebrations,
— performances and art shows,
— recital and amateurmusical practice space.
The staff report is linked below
.Art Center Introduction and 1st Reading of Ord. 758 N.S. – Approving a Lease Agreement with Piedmont Center for the Arts for City Property at 801 Magnolia Avenue