Gig Harbor staff to send YMCA lease amendment to council to allow some field‑rental income for operating costs

Gig Harbor parks staff told the City Council study session on March 12 that they plan to bring a draft lease amendment and revised services agreement to a full council meeting on March 23 after the YMCA requested changes to allow field‑rental income to cover operating costs.

"The YMCA has requested an additional change regarding section 5, the capital reserve fund," Parks Manager Jennifer Harrow said, describing the organization’s request to use income from field rentals to pay operating costs. Harrow said the request contradicts current lease language, which requires that "all rental fees collected by the tenant for use of the premises for any non‑tenant activity and all donations or sponsorships received by the tenant not directly used for construction of the phase 1a improvements shall be placed in the capital reserve." The wording, she said, has been part of the lease since 2021 and carried into the 2025 draft.

City staff noted the city attorney asked them to define "operating costs" in both the lease amendment and the services agreement and to limit those costs to public rentals rather than YMCA program activities, a restriction the YMCA said could be difficult to track. Staff proposed a working definition that includes personnel to manage rentals, management software for sign‑ups and utility bills "that support the field rental program." Harrow said maintenance and larger capital repairs — such as turf replacement at end of life — remain the tenant’s responsibility and continue to be covered by the capital reserve.

Council members asked for clarity on what constitutes "normal operating expenses" and whether one‑time extraordinary repairs would come from the reserve. Harrow and staff replied that repairs classified as maintenance typically fall under the capital reserve and that insurance may cover some unforeseen costs. "We understand the need to use field income to cover operating costs," Harrow said, and stressed that the amendment is intended as a targeted, clarifying change to the existing agreements.

Staff also told the council they hope to secure a temporary certificate of occupancy to allow a soft opening of field rentals on or around April 6, with a possible public ribbon‑cutting the week of April 20. After brief questions and expressions of support, council members directed staff to bring the revised documents forward for formal council consideration on March 23.

The council did not take a formal vote on the lease amendment during the study session; staff will return the finalized drafts for the March 23 meeting.