Commodores report –
Lease renegotiation –
Brittany Davis – I emailed mid April regarding the need to get a meeting on the books as lease expires at the end of 2023. Have not heard back yet.
After discussions with member Jim Weir, who has been involved in numerous lease renegotiations, he gave us the contact of Don Colvin who has is a deputy director at Indy Parks. Ej has reached out to him also.
We have had a real estate appraisal done by Mark Ratterman of Resource LLC. This was done so that we have our own independent appraisal as opposed to just using the City’s. For the last 2 lease renegotiations, the city has done an appraisal and set our rent at 10% of Appraised Value. From 2005 to 2012 it was set at $40,500. From 2013 to the present it was set at $47,150. Our independent appraisal came in at about 20 percent increase from our current levels.
In the past we have argued unsuccessfully that we should not have to pay the standard retail rate of 10% of assessed value as we are not a “for profit” business and in fact our lease states that we and our members cannot receive compensation. As many of you also know, we were established in partnership with the City when the reservoir was formed as the city leaders at that time want a reservoir with sailboats and a family atmosphere.
We will remind the city of all these things, but will likely still be dealing with paying our rent at 10% of valuation.
EJ has continued to work on getting the gate at the top of the hill automated (as the rest of the parks gates are) however, we feel that until we are on solid ground with the city/lease it isn’t prudent to make any major capital expenses. In fact, my last email regarding lease renegotiations stated that we have several large ticket capital expenses ready to go but want to ensure that the lease is going smoothly before committing to things like gates, docks and other major capital expenses.
I will discuss lease renegotiation expenses in new business and the DEI initiatives in old business.
