Council gives preliminary approval for food-pantry freezer expansion, directs staff to draft lease

Community volunteers asked the Preston City Council for approval to expand a walk-in freezer on city-owned property to support local food-pantry operations. Presenters said contractors and local businesses had pledged in-kind help but were reluctant to commit resources without assurance from the city.

Presenters described preliminary cost estimates in the range of roughly $200,000 to add freezer capacity and said several contractors had indicated willingness to donate materials and labor once the city signaled approval. Council members asked whether the improvements would be on city property and whether a lease was in place; staff and the attorney confirmed a formal lease would clarify responsibilities and donor protections.

City Attorney Lyle Fuller advised that the city cannot use taxpayer funds to subsidize private charities without a demonstrable public benefit and recommended either a clear leasehold-improvement clause or routing donations through a nonprofit or foundation (which could make contributions tax-deductible). Fuller suggested the Preston Community Foundation or a similar mechanism could be used to accept donor funds and protect the city’s interest.

Council voted to direct staff — specifically the community/economic development staff (Sean) and the city attorney — to work with the presenters (identified in the transcript as Mr. Kreger and Mr. Lundahl) to draft a proposed lease and other concrete documents for council consideration. The motion passed. The council did not commit city funds; it asked staff to return with a formal lease that would define terms, improvements, and public-benefit requirements before construction or donations proceed.

Next steps identified by the council include drafting a robust lease addressing leasehold improvements, specifying the term length, and documenting how in-kind donations would be handled so donors can determine tax treatment.