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MEMORANDUM <br /> <br />Item 5.4. <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Mayor and City Council <br /> <br />Pat Klaers, City Admin~t~o~ <br />October 28, 2002 ~ <br /> <br />Boys & Girls Club Issues <br /> <br />The city has been a big supporter of the Boys and Girls Club. This support from the City <br />Council includes having the club located in Lions Park, incurring a sizeable legal bill in <br />development of thc ground lease and other documents, and authorizing the city street crew <br />(and equipment) to assist in the preparation of the building construction site. The city <br />continues to have a strong interest in seeing that the Boys and Girls Club is successful. <br /> <br />The Boys and Girls Club ground lease states that the city must agree to the club taking on any <br />more debt which is tied to the building. In order to obtain an influx of cash for operating <br />expenses, the Boys and Girls Club desires to add to their current building debt. Due to a <br />variety of circumstances, including lower than anticipated local contributions and the turnover <br />of the Executive Director position, the club has fallen behind financially. The board of <br />directors for the Boys and Girls Club sees this as a short-term, temporary situation. <br /> <br />Representatives from the Boys and Girls Club will be at this City Council meeting to discuss <br />the request for the city to "sign off" on the club incurring more building debt. <br /> <br />There is one important point to bring to the attention of the City Council regarding this <br />request. This point is that under worse case scenario, if the Boys and Girls Club does not <br />make it financially and has to dissolve for whatever reasons, then the city is the likely buyer of <br />the building which includes assuming the building debt. Accordingly, agreeing to the club <br />taking on more debt does have a possibility - even if it is a small possibility - of costing the city <br />some money at sometime in the future. The current debt on the building is about $72,000. <br /> <br />A second item to discuss with the City Council is the possibility of the city leasing gym space <br />at the Boys and Girls Club. City Recreation is always looking for opportunities and building <br />space to provide programs and we have recently talked with the Boys and Girls Club about <br />leasing gymnasium space for running City Recreation programs. If this lease of the gym space <br /> <br /> <br />