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Commission approves Parlor Donuts lease amendment after public criticism of city economic-development choices
Summary
The commission approved a fourth amendment to the city’s lease with Parlor Donuts to address construction delays and reimburse the tenant; a public commenter called the arrangement "crony capitalism."
The City Commission voted unanimously May 5 to approve a fourth amendment to the lease with Parlor Donuts, a downtown tenant, resolving construction delays and authorizing reimbursement and an increased allowance for tenant improvements.
Staff said the amendment recognizes design and construction delays that increased costs for both the city and the tenant and that the city will reimburse Parlor Donuts for capital and operating expenses; staff listed a reimbursement figure on the record of $137,313.49 and read a correction to a cover memo changing a previously listed figure of $186,990 to $186,980.13.
During public comment, Greg Gardner criticized the city's economic development choices and described the Parlor Donuts arrangement as "crony capitalism," saying the city tends to "pick winners and losers." Gardner also questioned whether the shop would draw sufficient foot traffic at its location.
Staff replied that the amendment includes language clarifying that delays in possession were not the fault of Parlor Donuts and that the tenant will release the city from liability for previous lease‑related issues. The commission approved the amendment by a 7–0 vote.
Next steps: staff will finalize the amendment and process the reimbursement in accordance with the executed agreement.
