Commission directs workshop on facility‑lease policy after lengthy debate on nonprofit discounts and utilities costs

The commission took up a proposed facility lease policy on May 5 that would standardize leases for city‑owned facilities using a set discount from market value and a double net structure (tenant pays a pro rata share of operating costs). Staff presented sample scenarios and a recommended framework; commissioners and staff debated how any discount should be applied, whether a uniform per‑square‑foot price would be preferable, and how utilities, maintenance and other operating costs should be allocated.

Vice Mayor Langdon (S8) and multiple commissioners emphasized concern about older facilities (for example the Social Services building and the Awakened Food Pantry) and the risk of pricing nonprofits out of space. Commissioners discussed options including deep discounts (60–90%), a flat per‑square‑foot fee that could be adjusted by building condition, or tiered discounts if legally defensible. City attorney (S11) cautioned that differential treatment across nonprofits can raise constitutional or equal‑protection issues unless a clear, objective public benefit is demonstrated and consistently applied.

Commissioners asked staff to return with the likely cost impacts of utilities and other allocations under a double net lease and recommended a workshop that would present a small set of alternatives (flat square‑foot price with/without utilities, tiered discount scenarios, and legal analysis of volunteer nonprofit exceptions). The commission voted 5–0 to direct the city manager to work with staff to schedule a workshop, present options based on a fixed amount per square foot, and include an assessment of legality for offering additional discounts to 100%‑volunteer nonprofits.

Next steps: staff will analyze utility allocation methods (square footage averages, meter‑based splits), model the financial impact on key existing tenants (senior center, Awakened Food Pantry), and provide legal review of any tiering or special‑purpose discounts before the workshop.