Commission tables request to use economic development sales tax to move drinking fountain for downtown tenant

City economic development staff presented a late, non-agenda request from a prospective downtown tenant, Levity, asking the city to contribute up to $11,000 from economic development sales tax to relocate a city-owned two-tier drinking fountain in a public space inside a privately managed building so the tenant can install a designated door for its business.

Staff described a history of construction delays and multiple contractors at the site; the current contractor discovered the city drinking fountain after demolition began. The contractor provided a change-order-style quote of $11,000 to move the fountain and reconnect plumbing. Economic development staff asked whether the city would consider helping cover the relocation cost so the tenant could proceed with building out a family-oriented business that would include a tumble gym, pizza, ice cream and an arcade.

Commissioners and staff raised legal and procurement concerns: city legal counsel advised that expenditures of taxpayer funds should be publicly noticed and that purchasing rules apply; several commissioners asked whether additional bids could be obtained and who bears ultimate responsibility for omissions in the original plans. Some commissioners expressed sympathy for the business and concern about creating a precedent for using public funds to support private tenant improvements. One commissioner said the city shares some responsibility because the public spaces are city-operated and the fountain should have been covered in plans.

Commissioner Zundell moved to table the request for two weeks to return with more information and potential options; the motion was seconded and carried. Staff said the item will be brought back on the Feb. 3 meeting agenda for formal consideration with any required procurement notes and additional bids or alternatives.