Council approves first reading of Ordinance 783 and OKs $300,000 draw for Events Center operational loss

The Box Elder City Council approved the first reading of Ordinance 783, a budget amendment that adds a $300,000 draw from Fund 02/13 to cover an operational loss linked to the Box Elder Events Center.

Renee Baker, finance officer, explained that the draw is included in the first-reading ordinance to capture both the revenue and expense changes and to reflect a $300,000 transfer from Fund 02/13 to cover operational shortfalls. Baker said the fund is a Business District fund and that staff reviewed the request and confirmed it aligns with lease provisions that allow use of excess special-assessment funds for operational losses. Baker noted the fund has significant balance and staff found the request allowable under the lease.

Councilmember Davis moved to approve Ordinance 783 on its first reading; Schubert seconded the motion. The council approved the motion on a unanimous roll-call vote.

Separately, the council voted to authorize Expense Draw Request Number 31: a motion to draw $300,000 from Fund 02/13 to offset operational losses incurred by the Events Center operator and to authorize the mayor to sign associated documents. Motion by Davis, second by Schubert; roll call was unanimous and the motion passed.

The transcript records two different spellings for the private lessee associated with the Events Center lease (appearing as "Alanis LLC" in one place and later as "Atlantis LLC"). Because the transcript is inconsistent, the council action is reported here as approval of the draw consistent with the lease terms rather than attributing it to a definitively spelled private party.

Councilors asked clarifying questions about what items count as operational loss; Baker said the category includes materials, salaries and benefits, maintenance, lights and utilities, and other day-to-day operating costs. Council approved the draw without additional conditions recorded in the meeting minutes.

Next steps: Ordinance 783 was passed on first reading and will return to the council for its second reading per the city’s ordinance process. The draw authorization is an immediate administrative action consistent with the council motion and authorization recorded in the meeting.