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Housing & Redevelopment Authority November 2, 2009 Page 2 vitality to the downtown. She explained that the Arts Alliance is interesting in renewing their lease and staff recommends renewing the lease for up to two years. Ms. Mehelich noted that the cost of repairs, insurance and utilities would be negotiated with them David Raymond, Arts Alliance Board Chair, introduced John Stander, Executive Director of the Arts Alliance. Mr. Raymond stated that the Alliance is non-profit, but has a slight positive balance at this time. He stated that their upcoming budget looks positive, assuming the anticipated grants will be received. ------------ Commissioner Lieser arrived at this time (5:35 p.m) ------------- Mr. Raymond stated that the Arts Alliance is interested in negotiating some of the expenses with the city. He noted they are aware that plans for the long term use of the building are uncertain. He explained that the Arts Alliance would like to stay in the downtown. Commissioner Kuester asked if the Arts Alliance is currentlyusing both buildings. Mr. Raymond stated no, other than for storage, but they are looking at offering more classes and could use more space. Commissioner Kuester questioned if the Arts Alliance profits could be increased by offering more classes. Mr. Raymond stated yes. Commissioner Toth asked if the 720 Main Street building needed improvements. Ms. Mehelich stated that the restrooms are an issue, and is subject to review and discussion with the city's building official Ms. Mehelich stated there is also a concern for asbestos in the tiles at 720 Main. Commissioner Toth stated he recalled there was an issue with the stairwell. Mr. Raymond stated yes, the stairwell needs to be addressed He noted that there is a hallway connecting the two buildings, so that the restrooms at 716 Main could possibly be accessible. Chair Wilson asked if the HVAC unit at 720 was functioning. Ms. Mehelich stated yes, at a minimal level. Chair Wilson asked if she was aware of any potential problems. Ms. Mehelich stated that she has not heard of any concerns from the city's maintenance department. Commissioner Motin noted that the reason the EDA is paying insurance for the buildings is because they are being rented out for a different use, other than as a public building. If they not rented out, the buildings would be covered under the city's "blanket" policy. Chair Wilson asked if the Commission was comfortable having staff negotiate a lease with the Arts Alliance. Commissioner Motin stated he had no problem with a year-to-year lease, but had some concern with spending money on the buildings. Commissioner Toth concurred. Mr. Raymond stated they are not looking at the building as a permanent option, but that they would like to stay as long as they can. Commissioner Lieser asked if an annual lease would work better for the Arts Alliance for budgeting purposes. Mr. Raymond stated theywould like to look at a 2 -year lease. He stated that are looking for ways to reduce the annual costs for the building. Ms. Mehelich noted that if a substantial repair is required, the city has the option to terminate the lease. She stated that at least one HVAC unit needs to be replaced, and it may be cost-effective to replace both units at the same time.