RCTA alarmed at draft fairgrounds lease hike tied to electrification project

At the Aug. 31 meeting, staff told the board a draft ground-lease extension prepared by the fairgrounds and the state's Department of General Services (DGS) assumes a substantially larger footprint for a bus-electrification project and carries an "astronomical" rent increase. Staff said the draft would raise monthly payments from approximately $2,800 to about $5,200 at the start of a new lease term, and several board members described that increase as unaffordable for the agency.

"So going from 2,800 a month to 5,200 a month in this, you know," staff said when describing the draft lease's numbers, adding that the initial DGS estimate assumed roughly 2.3 acres rather than the agency's current ~1.5 acres. Board members urged limiting the leased acreage to what is needed for the EV generator pad and ancillary equipment, asking staff to ask the fairgrounds and DGS for a revised, smaller architectural concept and to consider a letter outlining concerns if the draft terms remain unchanged. Staff said they will work with legal and the survey data already held by the county to refine the project footprint and return with updated cost estimates and a proposed letter to DGS if needed.

The board emphasized a preference to remain at the fairgrounds but warned it may be cheaper to acquire property outright if negotiations produce persistently high rent. No final decision was made at the meeting; staff said they expect to continue negotiating and to return with a revised proposal and any recommended correspondence to state officials.