Jake Anderson, appearing online, briefed the Urban Renewal Board on two First Street parking lots the agency owns and asked whether the board wanted staff to pursue ownership transfer to the city. Anderson said Lot A is about 13,000–14,000 square feet and is leased to the Commodore under a $1‑per‑year contract that reserves 38 spaces; Lot B has no lease.
The issue has fiscal implications: Anderson said the agency currently pays property tax on the leased lot and that staff pays close to $2,000 annually in property taxes because the $1 lease does not exempt the parcel from tax. Jonathan Harris, the city attorney, said the tax liability depends on the property’s use and on how any future ownership or lease is structured; he said a written agreement would need to assign tax responsibility if the agency or city wanted the tenant to assume that liability.
Board members discussed maintenance history and whether the agency should remain in property management as it winds down operations. Anderson said the agency paid to repave and stripe the lots and that public use of the Commodore lot has been common; he added that although 38 spaces are reserved in the lease, Commodore managers reported usually only five or six tenants park there.
Board members raised possible next steps, including transferring ownership to the city now — a transfer that would remove the agency’s ongoing tax and maintenance responsibilities and would align with the agency’s stated plan to phase out property management before the district sunsets in 2029 — or continuing to hold the lots and explore enforcement or renegotiation of the existing lease.
Questions identified additional facts staff will research before any formal action: whether the Commodore has paid the $1 annual rent consistently, the exact legal obligations tied to the $1 lease and any associated tax-credit or development conditions, whether the Commodore might qualify for a public‑parking exemption for a subset of spaces, and whether the lease contains termination or default provisions. A board member reported the current lease started June 1, 2003 and runs through Dec. 31, 2053.
The board gave general direction for staff to dig further into tax and lease details and to pursue options to transfer the lots to the city if that proves administratively cleaner; there was no formal vote at the meeting. Less critical details: the lots sit behind several downtown businesses, including the former rec building and the site owned by Eric Gleason, and staff noted coordination would be needed with county tax officials if a transfer were pursued.