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Resident urges review of Erkey Building finances; staff propose tenant presentations and workshop
Summary
Jared, a resident, told the Finance Committee his review of rents and expenses for the Erkey Building suggests the city may finish the year with a negative net position at current rent levels.
Jared, a resident, told the Finance Committee he reviewed current rents and profit-and-loss figures for the Erkey Building and said the numbers suggest the city could end the fiscal year with a negative net position at current rent levels. "With the rented current rented spaces in the building... it's still looking like it might be a, sort of a negative balance at the end of the year," Jared said.
Charlie (City Manager) and staff responded that they will prepare a workshop with detailed, "true cost" figures for the Erkey Building and the Moore Center showing what each tenant (including nonprofit service providers) costs the city when utilities, CAM fees and other expenses are allocated. Staff said the workshop would also present options: raise rents toward true cost, continue subsidizing services the city considers public value, relocate programs, sell the asset, or look for higher-value uses such as a food hub or recreational space tied to riverfront development.
Staff described prior spending on the Erkey Building, saying the city invested roughly $250,000 in capital improvements after acquisition and that there have been flooding and drainage issues requiring attention. Committee members asked for an accounting of past grant and federal/state money used on the building and recommended inviting tenants to present operational summaries so the committee can weigh program value against operating cost.
The manager said the city will follow the Moore Center process (where tenant presentations were used) and suggested scheduling the Erkey workshop after the YMCA matter is finalized and the new council is seated. Members also flagged other city assets (PumpHouse Point, highway garage) for later capital-improvement reviews.
What happens next: staff will prepare a workshop including tenant presentations, a detailed financial accounting (historical investment, operating cost, rent schedules), and options for near-term and longer-term uses of the Erkey Building.
