AGENDA #4c

MEMORANDUM

TO:                  Mayor and Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Resolution Authorizing Amendment to Lease of the Franklin Street Teen Center, Inc.

DATE:            May 22, 2006

The purpose of this report is to recommend that the Council authorize amendment to the existing lease of the Franklin Street Teen Center, Inc. for space in the basement of the Old Post Office.  The amendment would allow the Teen Center to conduct an annual Art Print and Poster Show fund raising event.

BACKGROUND

The Franklin Street Teen Center, Inc. has been leasing a part of the Old Post Office basement since April 1984.  The Council has authorized renewals of the lease agreement several times including the current lease for a two-year term from July 1, 2005, to June 30, 2007.  The proposed amendment to the lease would allow the Teen Center to conduct an annual fund raising event.

DISCUSSION

For the past ten years, the Teen Center has conducted a fundraising event with the help of an art and poster vendor. The fundraising event involves the sale of art prints and posters.  The vendor administers the event using contract staff, and pays all associated costs (NC sales tax, workers’ compensation costs, etc).  The Teen Center provides the location, tables, publicity, and helps with set up.  For their assistance, the Teen Center receives 20 percent of the proceeds after taxes.  These funds support the Teen Center in its daily operations, maintenance, and purchase of new items for programs. The Teen Center seeks to continue the operation of this annual fundraising event.

The existing Lease Agreement between the Town and the Teen Center does not specifically allow the use of premises for fundraising events.  The Amendment to the Lease Agreement would revise the section on use of premises to include an annual fundraising event for no more than sixteen days during the months of August and September.

Because the Teen Center provides recreation activities for young people, we recommend amending the lease to include a provision for an annual fundraising event to aid the Teen Center in financially supporting its activities.

RECOMMENDATION

That the Council adopt the attached resolution authorizing the recommended amendment to the Franklin Street Teen Center lease.