Paddock board OKs $16,800 lease subsidy extension for Lula Mae

The board approved a motion to provide an additional year of lease reimbursement to Lula Mae restaurant at $16,800 for the upcoming year. Raelynn told the board that Lula Mae reported business growth and requested four additional quarterly payments to extend the reimbursement through October 2027.

"She reports that business is good and it is growing," Raelynn said when describing the owner's request and rationale for extension. Board members discussed whether to continue reimbursing only the base rent ($16,800) or to include the triple‑net (NNN) portion that would raise the annual amount to roughly $21,000; some members expressed concern about increasing subsidies for a Year‑2 business, while others argued the support bridges a known gap in downtown market rents.

After discussion, the board approved the $16,800 extension by voice vote. Staff noted that the board previously provided a $100,000 matching payment to assist the restaurant with kitchen equipment and that the total paid out this fiscal year to date was $116,800.

Why it matters: The extension maintains a modest targeted subsidy to help a downtown small business continue operations and build customer base while nearby development comes online. The board debated the long‑term direction for rent subsidies and signaled interest in weaning support when feasible.

Next step: Staff will implement the approved reimbursement schedule for the coming year and update the budget documents accordingly.