Title
Ordinance in the Amount of $108,000 Amending the Performing Arts Center Fund
Body
Department: Engineering & Inspections
Council District: 3
Public Hearing:
Advertising Date/By:
Contact 1 and Phone: Butch Simmons, Director
Contact 2 and Phone: Ute Munro, Business &Technology Manager
PURPOSE:
Consider adoption of a budget ordinance amendment in the amount of $108,000 to appropriate funds for maintenance, lease termination payments and demolition of buildings on properties acquired for the Steven B. Tanger Center for the Performing Arts.
BACKGROUND:
The City has acquired various downtown properties for the future site of the Steven B. Tanger Center for the Performing Arts and is responsible for leasing and maintaining those properties and subsequently demolishing them. Funds available to the project will be used to fund costs associated with property management including insurance, utilities, maintenance, early lease termination, and a portion of the demolition cost of vacant buildings.
Previously $200,000 in rental income from properties being acquired has been budgeted and an additional $23,000 in rent received can be budgeted at this time. Also, the Community Foundation has contributed $85,000 toward early lease terminations. The City will have $180,000 in lease termination costs, with most tenants vacating the properties acquired by the City by June 30, 2014.
BUDGET IMPACT:
No general fund expense or revenue accounts will be impacted. The Performing Arts Center Fund budget is being increased by $108,000, to appropriate additional project revenue, including $23,000 in rental revenue and $85,000 in contributions.
RECOMMENDATION / ACTION REQUESTED:
The Property Management Section recommends that City Council approve the attached budget ordinance amending the Performing Arts Center Fund in the amount of $108,000 to fund maintenance, lease termination payments and a portion of the demolition of buildings on pr...
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