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River Heights council approves provisional lease framework for old school; discounted rate for humanitarian center cleared for one year
Summary
Council negotiated lease terms for the old school building, approving a one-year approach that sets general rent at $13 per sq ft per year and a reduced $6.50 per sq ft per year for the Cache County Humanitarian center (capped at 4,500 sq ft). Council will re-evaluate CAM fees in six months.
Mayor Thompson opened discussion on a suite of leases for the city-owned old school, reporting that staff negotiated terms intended to balance revenue generation with public benefit. Thompson recommended setting general classroom rent at $13 per square foot per year and granting the Cache County Humanitarian center a reduced nonprofit rate of $6.50 per square foot per year capped at 4,500 square feet. Thompson said the city—s pro forma estimates operating costs will rise from roughly $30,000 to about $50,000 annually once the building is occupied, producing a CAM (common area maintenance) estimate of about $0.45 per square foot.
The discussion focused on trade-offs between maximizing revenue and preserving community services. Council members expressed concern that a steep nonprofit discount could create a precedent that undercuts other tenants; some suggested higher rates for classrooms while keeping lower rates for gym and stage, which are harder to lease at market rates. Thompson said the humanitarian center indicated one donor would cover a significant portion of its rent, and he asked for a one-year lease to allow the council to monitor usage, costs and CAM fees.
After debate, a motion was made and seconded to accept the negotiated approach as presented for one year, including the $13/sq ft general rate, the $6.50/sq ft rate capped at 4,500 sq ft for the Cache County Humanitarian center, and a six-month CAM fee re-evaluation clause. The council recorded the motion as passed (three members voted in favor during the roll-call). Staff said the property-management contract remains under negotiation; the city will finalize leases after the property-management language is resolved and will call a special meeting to approve final lease documents when ready.
Next steps: staff will finalize contract language with attorneys, proceed with tenant lease paperwork, monitor building costs and CAM after six months, and report back to the council for any adjustments.
