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Council approves 5-year license for Dance Project North at fairgrounds after debate over lease length
Summary
Council voted 5–2 to authorize a five-year license, with a five-year renewal option, for Dance Project North to operate in a 4,200 sq. ft. fairgrounds building. Council members expressed concern about committing to a long term without clarity on repairs and future tenants.
Prescott Valley — The Prescott Valley Town Council on Oct. 9 voted 5–2 to approve a five-year license agreement (with a five-year renewal option) allowing Dance Project North LLC to operate a private dance studio in a 4,200-square-foot building on town-owned fairgrounds property.
The license: Town staff described the agreement as a five-year license with one five-year renewal option, a monthly license fee of $3,000 ($36,000 annually), and a 10% rent increase if the renewal option is exercised. Under the agreement the town will maintain structural elements of the building; the licensee will name the town as an additional insured and must provide annual reporting required by the license terms.
Why council debated it: Several council members urged a shorter term pending completion of an overall plan for the fairgrounds building (formerly under license to the Wheelhouse). Councilwoman Kiel and other members said a five-year commitment could limit the town’s flexibility while repairs and the broader plan for the building remain unresolved. Specific concerns included lack of clarity about heating/cooling (HVAC) needs, electrical repairs, and other deferred maintenance the town may be required to address under the license.
Council and staff remarks: Town staff explained the five-year term was intended to provide continuity for an existing operator and to protect the tenant’s investments. Councilman Freund and others noted the license offers stability to the tenant and could encourage future collaboration if other operators respond to an RFP. Another councilmember noted the contract contains an escape clause if the town decides to sell the property.
Vote and next steps: The council approved the license by electronic vote, 5–2. Staff said the town has rekeyed the building, placed utilities in the town’s name, and will schedule on-site community meetings to gather input on future uses. Staff listed an immediate administrative follow-up to execute the license and complete rekeying and insurance documentation.
Ending: The license provides a short-term operational solution while staff and council continue to explore long-term options for the fairgrounds building and other tenants.
