City Council
MEETING DATE: 4/13/2016
TITLE:
Title
Relocation Assistance and Operating Grant for the Cathedral City Dance Program
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council approve an agreement with the Cathedral City Dance Program for one-time relocation assistance of $5,000, rent waivers for the remainder of FY15-16 and an operating grant for FY16-17 and approve the required budget adjustments.
Body
BACKGROUND:
Since the City eliminated its Parks and Recreation Department in 2003 due to budget cuts, dance classes have been provided through an agreement with the Cathedral City Dance Program under the leadership of Kimera Lewis. A license agreement gave the CC Dance Program access to the old community center building at 68707 East Palm Canyon. The CC Dance Program paid a revenue share to the City for use of the building. On October 28, 2015 Council approved a request to authorize the sale of the old community center building to the City Urban Revitalization Corporation (CURC) for demolition and redevelopment of the site. Council also directed staff at that meeting to work with the CC Dance Company to locate another facility where they can continue to provide their classes and other services and to identify any assistance required related to relocating.
DISCUSSION:
The current license agreement with the CC Dance Company was approved by Council in August of 2011 and provided for a revenue share of 20% to go to the City in exchange for use of the old community center for their classes and other programs. In recent years, payments to the City totaled $16,190 in FY 13-14 and $16,165 in FY 14-15. During those same fiscal periods the City spent $25,299 in FY 13-14 and $31,035 in FY 14-15 maintaining and operating the building, resulting in a net cost to the City of $9,109 in FY 13-15 and $14,870 in FY 14-15.
After the October 28, 2015 Council meeting staff began discussions with the CC Dance Company regarding their facility needs, suggested some locations and sent a number of lease referrals to Ms. Lewis and her team. Recently Ms. Lewis reported that they have identified a suitable location in Cathedral City. The floor space is less than what was available at the Community Center and the rent will be more than what they paid to the City prompting a request for financial assistance to close the gap. Depending on their exact programming schedule for the upcoming year, the new location will cost about $19,200 more per year than they have historically paid to the City for the old Community Center. They have requested an operating grant to cover the difference. Additionally, they will incur costs associated with the physical relocation including moving or purchasing dance flooring, mirrors, rails and other equipment and they will have to pay up front costs associated with securing the lease such as first and last month's rent, rent while they complete tenant improvements and deposits. To cover those costs they are requesting one-time relocation assistance of $5,000 and the waiver of the remaining revenue shares due to the City for the next five months, approximately $8,000.
Staff has developed an agreement with the CC Dance Program to cover these costs with the relocation assistance provided in the current fiscal year, and the operating grant being paid in FY 16-17. The agreement requires the CC Dance Program to vacate the old Community Center site by the end of July 2016 and provides for the operating grant for FY 16-17 only. Any future assistance will require Council action.
This agreement will benefit the City by removing the annual costs of operating and maintaining the old community center, allowing for the demolition and redevelopment of the site, while still providing the dance program and other services to the people of the community. Costs avoided in facility maintenance and operating costs will range from $25,000 to $35,000 annually.
FISCAL IMPACT:
The cost to the City will be $13,000 in the current fiscal year ($5,000 relocation grant and $8,000 in revenue share waivers) and $19,200 in FY 16-17. A budget adjustment for both fiscal years is required. Maintenance costs avoided with the demolition of the old Community Center will at least partially offset the costs of the grant.
ATTACHMENTS:
Agreement with the Cathedral City Dance Company