Youth clubs want updated leases

Youth clubs want updated leases

Boys, girls club leaders need paperwork to seek grants

news@theeveningtimes.com

Two of the four youth clubs have approached the city asking for updated leases. Directors at the L.R. Jackson Girls Club and the Crittenden County Boys and Girls Club told City Attorney David Peeples in separate meetings they need new leases to qualify for funding big ticket maintenance and repairs.

Three of the four local clubs lease from the city.

The J.W. Rich Club owns both building and ground.

The City owns the property and buildings at the Wonder City and L.R. Jackson Clubs. The Crittenden County Boys and Girls Club owns its own building but is situated on city ground in Worthington Park. Each club has traditionally received funds from Southland revenue designated to city youth activities. All clubs are free to develop other funds through dues, concessions, admissions, donations, grants or loans.

That is where the need for a new leases arises. For clubs to qualify for grants or loans aimed a big ticket repairs, a longer lease term serves as assurance.

Peeples provided lease overviews for city council to consider on April 6. The goal for reconsideration of leasing policy is to bring uniformity where possible to the lease and bring requirements up to date. Currently a $10,000 bond is to be held by each club.

Peeples further recommended a million dollar liability policy naming the city as a co-insured held at each club.

City Treasurer Frank Martin weighed in.

“Right now a $10,000 bond is required. As far as I am aware only the Crittenden County club has one currently and they also already have a million dollar policy naming the city as a co-insured.”

L. R. Jackson club Director Chancey Rainey disagreed in a special meeting April 11.

“I have given the bond to Mr. Martin when we first got it,” said Rainey. “I know it is there somewhere.”

Fresh new leases could benefit three clubs holding a lease.

“We just got a new board in January and this is what they are working on, getting new grants,” said Rainey. “One of the grants we tried to get and sent an application to replace the air conditioner system.

They said because the equipment was attached to the building we had to have a lease. We have no lease.”

The original lease at that girls club ended in 1993 with one five year renewal at a token dollar a year. The city and the club has been without any kind of agreement in force there for 19 years.

Darin McCollum runs the Boys and Girls club affiliate in Worthington Park. Its lease started in 1969 and ran for 25 years, expiring in 1994 with a single 25 year renewal option which expires in 2019. The board of directors officially expressed need to Peeples for a longer lease to secure grants or any needed future financing.

“We sit on city property but we own the building,” said McCollum in an interview. “We moved to this location in 1969 and had a 25 year lease with an automatic 25 year renewal at a dollar a year. Our current lease runs out in 2019. If we wanted to borrow money against our own building or for grants, no one would look at us for building improvements because we don’t have enough time left on our lease. Because when 2019 runs out they’d have to consider we’d be out of the building.”

City Attorney Peeples overview is for city councilors to consider authorizing lease changes at the Crittenden County club, L.R. Jackson and Wonder City club. Despite different arrangements on property and buildings he called city councilors to allow updated leases, authorizing more uniformity in agreements including repairs provisions with the three clubs and modern insurance limits.

City administrative leadership met April 11 in a city council work session that in part examined Peeples’ lease analysis. No legislative solutions have been

proposed. The meeting was attended by nine of the ten city councilors with only James

By John Rech