Facilities committee reviews American Legion lease amendment to allow event alcohol, 30-year protection for capital investment

Johnstown’s facilities committee on Feb. 13 reviewed proposed amendments to the American Legion’s lease that would add a 30-year protection window to shield capital improvements, permit alcohol consumption by renters under specified conditions, widen allowable rental durations and revisit insurance requirements.

The committee heard from a Legion representative who identified themself as the finance officer, who said the group plans a roughly $350,000 remodel and therefore sought a guarantee that the organization could recoup that investment. “If we’re going to spend $350,000 to remodel it, we want to protect that investment,” the finance officer said, explaining the proposed 30-year protection clause and edits to the lease’s 90-day termination language.

Committee members said they were sympathetic to the Legion’s need for financial stability but pressed for language that also preserves the city’s long-term options. Members proposed a prorated reimbursement or amortization schedule — for example, higher payback percentages in earlier years and lower ones as time passes — so the Legion could recover investment while the city would retain the right to reclaim the property if needed.

The Legion also asked to change current lease language that restricts alcohol to members only, so renters could consume alcohol on the premises (but not sell it), and said the organization may seek a liquor license in the future as a potential revenue stream. Committee members and the police chief discussed safeguards such as a separate alcohol addendum, limits on consumption areas, additional security deposits and police access to verify compliance. The committee recommended keeping alcohol rules outside the master lease in a reviewable addendum and reviewing such rules annually through the facilities committee.

Members also reviewed operational items the Legion requested to change: expanding short-term rental limits (currently capped at three days), clarifying whether a short-term rental counts as a transfer or sublease under the lease, and allowing multi-day trainings or conventions. The committee agreed that building alterations must follow design review and planning and zoning procedures; committee members said the lease amendment could be approved first for protection, but construction approvals should proceed through the proper permitting channels before written permission to alter the premises is granted.

Insurance coverage under the lease also drew attention. The existing lease lists general liability at $1 million and property-damage coverage at $750,000; committee members and Legion representatives agreed the amounts should be re-evaluated to reflect planned construction and alcohol-related exposures. The Legion said it would consult its insurer and propose updated coverage numbers, and the committee asked legal and staff to draft reviewable language that could be adjusted periodically.

For next steps, the Legion’s attorney will refine the amendment language and exchange drafts with the city’s legal counsel. The committee tentatively scheduled a facilities meeting for Friday, Feb. 27 to review the revised wording and discussed presenting recommended amendments to council at the March 3 meeting, followed by safety and service review that same evening if appropriate. The committee also asked staff to prepare a concise summary highlighting the four primary changes for council members ahead of any vote.

The committee additionally discussed professional services for a commercial realtor to assist the city in identifying property options, and agreed to consult legal counsel on procurement steps. The meeting concluded after a motion to adjourn was moved, seconded and approved.

What’s next: the Legion will work with its attorney on specific lease language (including proposed amortization details and recommended insurance levels), send revisions to the city’s legal counsel, and the committee will reconvene to review the attorney-drafted amendment before any council action.