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Elko council denies conveyance of city lot to local nonprofit FISH, asks group to return with updated finances
Summary
The Elko City Council declined a request by Friends In Service Helping (FISH) to convey city-owned property at 821 Water Street, citing a need for further financial assurances. Councilmembers and the nonprofit’s leaders traded questions about sustainability, and the denial passed with a motion asking FISH to reapply later.
The Elko City Council voted March 10 to deny a proposed conveyance of city-owned land at 821 Water Street to Friends In Service Helping (FISH), the local nonprofit that runs a thrift store, food bank and emergency shelter.
Pastor Tim Royal, introduced in the hearing as the FISH director, urged council to transfer the property to the nonprofit so it could “put that capital on our books,” saying the accounting treatment would strengthen fundraising prospects and long-term sustainability. He told council the organization had sold a warehouse in August and now holds roughly $420,000 in cash, had cleared prior debt and had doubled fundraising year-over-year.
Council members asked detailed questions about FISH’s balance sheet, outstanding liabilities and how a conveyance would be used. One councilmember said they appreciated the nonprofit’s work but remained concerned about reverting to earlier financial distress and the precedent of conveying city land without more evidence of sustained solvency.
A motion to deny the conveyance carried at the meeting; the motion’s maker asked FISH to return at a later date with evidence of continued financial stability and the council’s intent that the organization reapply after demonstrating sustained growth. The denial preserves the city’s existing lease (the transcript indicates a lease through 06/30/2030) and leaves open the option of a future conveyance with deed restrictions; city staff noted past conveyances have included reversionary clauses that return property to the city if deed conditions are not met.
City attorneys briefed council on statutory safeguards: if property is conveyed for no consideration to a nonprofit and that nonprofit ceases to use it for charitable purposes, state law can cause the property to revert to the city; staff said the city also typically inserts explicit reversionary terms in deeds to protect public interests.
Councilmembers and public speakers praised FISH’s services — the nonprofit distributes tens of thousands of pounds of food monthly, operates a soup kitchen and manages Samaritan House emergency shelter — but ultimately determined they were not ready to approve a conveyance at this time.
Council action: Motion to deny conveyance passed by voice vote. The council asked FISH to return in the future with updated financial reporting and indicated staff would continue to work with the nonprofit on possible alternative support, such as letters of recommendation or other non-conveyance assistance.
