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Committee flags Tinseltow lease-buyout paperwork; member favors lump-sum payment over multi-year installment
Summary
Committee discussed a Tinseltow lease buyout sent to legal; a member identified a typo in the agreement and calculated that installment options effectively yield about a 5% annual cost, expressing inclination to accept a one-time payment and asking staff to compare fund-balance earnings.
The committee reviewed a Tinseltow lease-buyout item that staff had sent to legal for clarification. A committee member noted an apparent typo in the draft agreement: what the document labeled "option 2" as a five-year installment actually reads as a three-year installment in the calculations.
The same member calculated that, under the installment options described, the city would effectively receive the equivalent of about a 5% annual interest payment compared with taking the full payment up front. "So I guess my question would be, how much is the money in our fund balance earning? And is it better or worse than 5%?" the member asked.
The committee did not make a final decision; staff and legal said they would return with corrected language and a comparison of fund-balance earnings to help weigh whether an upfront payment or periodic installments is preferable.
