Committee pauses decision on Oak Avenue rental rates after concerns about nonprofit impacts

Parks staff presented a proposed schedule of rental rates for community groups using space at Oak Avenue and detailed how the building’s operating costs exceeded current rental income.

The committee heard that staff used an external storage-rental average — "about 40¢ per square foot" — to set preliminary rates and that the building’s estimated annual operating expense is roughly $38,000 while current rental revenue is about $13,000, leaving a shortfall of about $25,000. Parks staff said the proposal is illustrative and implementation timing has not been set.

Committee members pressed staff on the methodology and fairness of charging the same rates to groups that reinvest revenue in city services. One member asked why the Zoological Society would be treated the same as other tenants when its revenue supports the zoo, and another said the rates appeared high compared with local garage-storage prices. Parks staff replied the numbers were averages intended to start the conversation and that rates could be adjusted by user, room function, or timing.

Several members urged a cautious approach. "I would like to do a little more research," a committee member said, requesting market comparisons and legal review before any change is implemented. Members emphasized that the proposal would not affect the 2026 budget unless adopted, that many tenant arrangements are informal (no 12‑month leases), and that a phased or delayed implementation could reduce disruption for community groups.

The committee agreed to ask staff to return next month with additional analysis, including comparisons to other storage providers, an assessment of how changes would affect specific nonprofit tenants, and counsel input on enforcement and lease language. No vote was taken to adopt rates at this meeting.