Loading...
HomeMy WebLinkAbout05-05-20 Finance Committee Minutes FINANCE COMMITTEE OF DUBLIN CITY COUNCIL Tuesday, May 5, 2020 Virtual meeting - 5:30 p.m. Minutes of Meeting Chairperson Alutto called the virtual meeting to order at 5:30 p.m. Committee Members present: Ms. Alutto, Chair; Mr. Keeler and Mr. Peterson. Staff members present: Mr. McDaniel and Mr. Stiffler. Others present: Scott Dring, Executive Director; Dr. David Lee, Board President, Dublin Convention and Visitors Bureau. David Guion, Executive Director; Robin Campbell, Board President, Dublin Arts Council. Approval of Minutes o Minutes of November 13, 2019 Mr. Peterson moved approval of the minutes of November 13, 2019. Mr. Keeler seconded the motion. Vote on the motion: Mr. Keeler, yes; Mr. Peterson, yes; Ms. Alutto, yes. Request for Funding from DCVB for the Dublin Hospitality Industry Restart Plan Dr. Lee thanked the Committee as well as Mr. McDaniel and Mr. Stiffler for considering this restart plan. As everyone knows, the current directives to stay safe and stay home are counter to the Bureau’s mission of bringing people to Dublin and so they are pivoting during this crisis. The DCVB deliverable has always been the return on investment – the DCVB prides itself on making sure every dollar given to them generates a return. This is an important time to make sure this happens, and the restart plan does just that. Mr. Dring noted that the projection for bed tax is 64 percent down in 2020 versus the previous year. He provided an update on the steps the DCVB has taken to reduce fixed expenses – salary reductions, benefit reductions, marketing dollars cut. They have $200,000 in reserves. He updated the committee on the various programs and their ineligibility to participate as well as the status of any grant requests they have made. They do have a line of credit available if needed. They are good until the end of the year for the operational standpoint. What they are requesting is support for sales and marketing. He emphasized the restart plan [shown] is a community plan – not just a DCVB plan. What the DCVB does is economic development – generating jobs, generating awareness globally of the City of Dublin. There is tremendous ROI in their plan. In terms of a timetable, there is a finite start and conclusion to this plan. They believe the end will be at the end of this calendar year. The goal of the plan is to implement a unified sales and marketing effort to restart the Dublin hospitality Industry and local economy while recovering lost jobs and revenue for Finance Committee May 5, 2020 Page 2 of 12 the City of Dublin. He noted that 70 percent of the hospitality industry jobs in Dublin are gone. One of their key metrics is to get a majority of those back. He then highlighted the various initiatives of the phases the plan, as outlined in the attached. He summarized that the request, as outlined, is for $300,000 to fund the restart plan. He noted that two years ago, the DCVB began a Place DNA project – to determine the message and markets and what really resonated with people. Focus groups were held and there were key attributes that people indicated made Dublin so special: clean, safe, and outdoor amenities. He closed the presentation by stating that he and his family have lived in Dublin for 20 years and things have changed, but one constant are the people and their love for Dublin and for each other – that will never change. Council Questions Mr. Peterson stated he is supportive of all that Mr. Dring has outlined in the restart plan. The reasons for him to support this are that the DCVB has always been mindful of the ROI for the monies invested in the programs; the credibility of Mr. Dring based on his track record over the years; and the exceptional Dublin staff who will be working hand- in-hand with the DCVB on this restart plan. This is a community effort focused on Dublin. For these three reasons, he is supporting the funding for the restart plan. Ms. Alutto and Mr. Keeler agreed. Ms. Alutto asked staff to comment. Mr. Stiffler provided two funding options, should the Committee recommend to Council their desire to support this plan at $300,000: Appropriation from the General Fund The restart plan is intended to restart Dublin’s restaurants and retail in addition to its hotel establishments. Using General Fund dollars reflects the broad intention of this plan. It preserves the fund balance in the Hotel/Motel Fund as that fund’s revenues have declined significantly. Funding for the appropriation could come from unearned economic development incentives. The current balance in that account is $387,000. This appropriation could be redirected in order to fund the plan without increasing the budget. It may require an increase in future appropriations should additional economic development opportunities come about in 2020. The Hotel/Motel Tax Fund The final Phase 3 of the restart plan is the most expensive and longest phase and most likely to generate hotel/motel tax revenue. Staff would propose utilizing the General Fund to support this restart plan. Staff also recommends that the Committee direct staff to work with the DCVB to structure this in such a way to maximize the potential reimbursement under the CARES Act – including perhaps a professional services agreement or other arrangement to be worked out. Finance Committee May 5, 2020 Page 3 of 12 Mr. Keeler stated he assumes they are seeking the entire $300,000 at one time versus a phased approach for funding. Ms. Alutto responded the request is for the entire $300,000 in funding at one time. Mr. Stiffler agreed. Whether it will be distributed all at one time or in phases as the plan unfolds could be worked out between staff and the DCVB. Mr. Keeler stated that this would essentially be a “line of credit” where the City holds the money and disburses it as the phases are completed, correct? Mr. Stiffler stated that the easiest method is to recommend approval of the $300,000 to Council, and staff could determine if some portion should be completed before granting money for the next phase. He would recommend a $300,000 appropriation for this purpose, and entering into a Professional Services Agreement with the DCVB and that it be handled as any normal contractual relationship. Ms. Alutto stated it would be important to keep Council updated on the status of the various phases. Mr. McDaniel asked if Mr. Dring has a preference in terms of paying this out in phases and setting up an agreement. Mr. Dring responded that they can work with vendors for payments needed in the future. They are not in need of the entire amount upfront. The Clerk reported there was not any public input received via e-mail. Mr. Peterson moved to recommend to Council the funding of $300,000 as Mr. Stiffler has described, using the economic development incentive dollars. Mr. Keeler seconded the motion. Vote on the motion: Ms. Alutto, yes; Mr. Keeler, yes; Mr. Peterson, yes. Ms. Alutto thanked the DCVB representatives for their participation tonight. Request for Funding from the Dublin Arts Council due to COVID-19 Mr. Guion noted that Board President Robin Campbell is also participating in the meeting tonight. He noted that a memo was sent dated April 1, 2020 to the City with the request for support. This memo was included in the packet for tonight’s meeting. He will provide summary financial information to supplement the April 1 memo and programming updates – both current and in progress. He stated the following:  The DAC staff of six have transitioned to working from home offices and are all healthy.  The organization has remained nimble in its response to the pandemic and to the community needs.  The Board has demonstrated exemplary leadership and guidance, providing much needed in kind and financial support.  Art is essential now more than ever. During this time of social isolationism, people are utilizing the arts to bridge connection and healing. Art is not cancelled.  DAC remains dedicated to their mission, which is to engage the community, cultivate creativity and foster lifelong learning through the arts. Finance Committee May 5, 2020 Page 4 of 12  Hotel/motel tax funds provided to Dublin Arts Council are used to improve the quality of life for residents, corporate citizens and visitors. The DAC anticipated receiving $741,000 for programming in 2020, after funds were withheld for public art and the Dublin Arts Center lease. This 2020 budget did not anticipate any increase in hotel/motel tax from 2019 to 2020 and represented 80 percent of Dublin Arts Council’s income.  The red bars shown on the graph represent City of Dublin revised hotel/motel tax revenue estimates, based on best, moderate and worst-case scenarios, ranging from a reduction of 38 percent to a reduction of 65 percent.  Dublin Arts Council’s financial response includes two primary strategies: reduce expenditures and increase revenue.  To that end, Dublin Arts Council’s operating budget was reduced from $1,101,047 to $843,499. These cuts include a 20 percent reduction in payroll, a 31 percent cut to programming expense and a 20 percent reduction in overhead.  The DAC continues to seek ways to reduce costs while exploring forms of low or no-cost programming.  To increase revenue, Dublin Arts Council immediately sought and has received a $94,800 loan under the Paycheck Protection Program plan. They expect $65,000 to be forgiven and reclassified as revenue. The remainder can be carried forward as a loan at 1% interest, if needed.  On May 1, Dublin Arts Council submitted a grant application to the National Endowment for the Arts for $50,000 in sustainability funding through the CARES Act. Dublin Arts Council is qualified to apply as a recent NEA grant award recipient. There is a 20 to 25 percent chance of receiving this funding. The grant is designed to reach underserved populations.  Dublin Arts Council’s timely comprehensive Development Plan will be completed in June, providing a short- and long-term roadmap for increasing philanthropic efforts and increasing individual giving. They are vigorously undertaking fundraising efforts and campaigns, including Giving Tuesday Now, as well as The Columbus Foundation’s Big Give campaign on June 10-11.  Dublin Arts Council’s annual Garden Party fundraiser has been rescheduled for August 28 at The Conference Center at OCLC. In the event we are still limited in social gatherings at that time, we have a new virtual fundraising and digital bidding platform for our ever-popular silent auction, which can be integrated for a virtual gala.  With cancellation of the Sundays at Scioto summer concert series, Dublin Arts Council reached out to corporate sponsors to ask for their support to be redirected for general operating costs. The response has been overwhelmingly positive and he acknowledged the supportive corporate community in their effort to keep the arts alive.  Dublin Arts Council is currently in conversations with the Ohio Arts Council and Dublin Community Foundation to determine the potential for grants and expanded support. We continue to research and pursue all other potential grant sources. He described the current budget shortfall projections: Finance Committee May 5, 2020 Page 5 of 12  This chart is based on calculations from late March and included estimates for Hotel/Motel tax that were compiled through communications with the Dublin Convention and Visitors Bureau, Greater Columbus Arts Council and Experience Columbus. This estimate very closely mirrors City of Dublin projections under the “Moderate” model for Hotel/Motel tax funds.  This chart also represents the reduced operating budget of $843,499. The net change shows a gap of roughly $360,000 remaining to be filled under this model.  The April books have not yet been closed, but the May 1 cash balance less liability is projected to be approximately $460,000. For the nonprofit industry, best practices indicate a reserve fund policy that provides for a minimum of three months and a recommended amount of six months of operating expense, plus an operating balance for normal monthly expenses. Dublin Arts Council has been working for the last 15 years toward building a six-month balance. To date, the DAC has achieved a five-month balance. In comparison, the City of Dublin has a General Fund balance of $68.8 million, enough to fuel the city for ten months. These reserves will be used for:  Programs currently in planning that respond to COVID-19  To offset the annual cycle of lower hotel/motel tax receipts in the first quarter of the year, as is standard  To address a potential reduction in hotel/motel tax funding beyond current projections in both volume and duration. Even with limited resources, Dublin Arts Council remains vigilant and dedicated to providing important programming that benefits Dublin residents, corporate citizens and visitors.  The Board of Directors and staff are working to increase contributed revenue to help Dublin Arts Council fulfill its mission. Today, May 5th, is GivingTuesdayNow, a global day of giving and unity in emergency response to the need created by COVID-19.  Dublin Arts Council has partnered with Dublin Bridges to bring art supplies and arts education activities to community families who receive free and reduced- price school meals. The effort has already raised over $3,000 with a total of 33 donations. Dublin Arts Council will continue to receive funds in this initial phase through May 26 as part of a nationwide matching-fund campaign sponsored by Nonprofit Hub, Firespring and Do More Good – all dedicated to nonprofit education.  Dublin Arts Council is a service organization. We define community as those who live, work, visit, play and learn in Dublin. To fulfill our mission, and the directive for use of hotel/motel tax funding – to improve the quality of life for residents, corporate citizens and visitors – one of the first things Dublin Arts Council did in mid-March was to create a digital “Be Creative” resource page, providing creative project ideas and instruction, virtual arts experiences, challenges, mindfulness ideas and wellness resources to support the greater community.  The “Your Street Name Here” Arts Festival was designed to encourage neighbors to have fun and bring joy to everyone who takes walks and cycles through Dublin neighborhoods. On May 8 and 9, residents will be placing artwork outside Finance Committee May 5, 2020 Page 6 of 12 for all to enjoy. As of yesterday, 16 neighborhoods have signed up. A full list will be posted soon.  Working in collaboration, Dublin Arts Council can provide value-added support to the Dublin Convention & Visitors Bureau’s efforts. We can leverage our existing assets to reach local, statewide and regional visitors – including our public artwork, with visitors logged from all 50 states via our cell phone tour, and our Riverboxes, recognized as in the top 1 percent of more than 450,000 geocachers in the United States.  We can reach new audiences with messages targeted to visitors who are explorers, creative and curious. We can help welcome friends and family back to Dublin to re-connect and celebrate. Cultural tourism pays dividends with 22% longer stays and 38% higher spending than general tourists. The economic impact of arts programming in Dublin was estimated at $1.25 million last year. In supplementing the DCVB restart plan with a no-cost marketing communications effort, Dublin Arts Council can utilize a $10,000/month grant for paid search through Google Ads. We can also assist in social and traditional media efforts plus email marketing to reach local and regional patrons who fit the target for the DCVB restart plan.  The DAC is creatively promoting Dublin. Their earned media impressions for the Field of Corn anniversary event alone were over 13 million across the country. Since Dublin Arts Council is a 501(c)(3) nonprofit, they will work in collaboration with the DCVB to research and jointly apply for any available funding to support cultural tourism and reach potential visitors.  On April 23, Dublin Arts Council made the difficult decision to cancel the 2020 Sundays at Scioto summer concert series for the first time in its 37-year history. Dublin Arts Council, in collaboration with the City and the DCVB, is exploring ways to continue to infuse performing arts into the community, with drive up, in- person and virtual house concerts plus other pop-up temporary public art experiences. All eight of the 2020 Sundays at Scioto musical acts have agreed to perform in 2021. The lineup and links are posted on the Dublin Arts Council website so the community can enjoy online performances and get to know the artists virtually before they come to Dublin next year.  Dublin Arts Council also made the difficult, but prudent decision to cancel in- person ARTcamps for summer 2020. This impacts earned revenue, but more importantly it impacts the families who look forward to this experience each summer.  With support from the Greater Columbus Arts Council, Dublin Arts Council is convening an ad hoc working group made up of local arts agencies in Hilliard, Grandview, Worthington and Delaware, in order to make sure art education offerings are an important part of children’s activities throughout the summer.  Our community is responding to the pandemic creatively, with kindness and humor. We are regularly communicating with members of the community and asking them to keep their “art”ifacts for a community “Created at Home” exhibition that will take place in the Dublin Arts Council gallery and other public spaces when we are cleared to gather in person and all safety protocols are in place to open up the Dublin Arts Center. Finance Committee May 5, 2020 Page 7 of 12  Dublin Arts Council has created and posted a virtual gallery tour of the exhibition Rod Bouc: Earth and Sky and is exploring both in-person and virtual options for the next exhibition in our gallery: Sue King: The Great Outdoors.  The next Art and Wellness event is scheduled for Sept. 26 in Scioto Park titled CONNECT, and will connect visitors with the environment, community wellness and one another. He recommended that this dialogue continues by meeting regularly, and forming a Hotel/Motel Tax Task Force to monitor changes and address needs. The Hotel/Motel Tax Task Force should include Dublin Arts Council, the Dublin Convention & Visitors Bureau, City of Dublin and representatives from the Hospitality Industry and Business Community. The purpose of the task force would be to evaluate the ever-changing travel and tourism environment, and to keep each other informed of the rapidly changing economic situation that impacts us all. Together, this Task Force can respond in a timely manner, to the benefit of Dublin’s residents, corporate citizens and visitors. He thanked the Committee for their time and attention and offered to respond to questions. Mr. Keeler asked about the grant the DAC has applied for with the National Endowment for the Arts. What was the amount requested? Mr. Guion responded the grant request is $50,000. Mr. Keeler asked when they will know if they receive the grant award. Mr. Guion responded they will know the outcome in June. Mr. Peterson asked about the funding set aside for the building improvements. What is that total amount? Mr. Stiffler responded there is $475,000 set aside in 2021 in the current CIP for improvements to the DAC. Ms. Alutto asked what is included in the improvements. Mr. Stiffler recalled it is a back patio area. Ms. Alutto asked Mr. Stiffler to provide staff’s report regarding the DAC request. Mr. Stiffler provided potential options for funding, should the Committee recommend to Council that funding support be provided: 1. Forgiveness of lease payments for the Dublin Arts Center. Rent is $7,000 per month. 2. Remove the requirement for the Art in Public Places (AIPP) Program in 2020, which would free up $75,000 for 2020. 3. Provide funds currently held by the City for the Art in Public Places program. Currently, $300,000 in the Fund balance is set aside for the AIPP for 2016-2019 and has not yet been utilized. 4. Redirect funds in the 2020-2024 CIP for capital improvements at the Arts Center. There is $475,000 allocated in 2021 in the CIP. Typically, when talking of CIP funds these are income tax dollars. In this case, these capital dollars are coming from the Finance Committee May 5, 2020 Page 8 of 12 hotel-motel tax fund and are the same account used for operating budget expenditures for events and for payments to the DCVB and the DAC. 5. Provide a grant from the Hotel/Motel Fund to the DAC for general operating support. The memo of 4-21-20 requests $201,000. If the committee is supportive of this request for operating expenses, staff does have a recommendation for how it might be structured. Staff recommends the following:  Forgive or suspend the $7,000 per month in lease payments, at least for the term of this emergency.  Defer the capital project for the DAC from 2021 to at least 2022. At that time, a path forward could be determined, depending upon the level of support that is ultimately provided to the DAC and a review done of the hotel-motel tax fund balance over 2020 and 2021 to evaluate all of the priorities of that fund. It is important to consider that the hotel-motel tax fund is the only special revenue fund that does not require a transfer from the General Fund in order to carry out its purpose. It is unlikely that the hotel-motel fund is going to be able to maintain this financial strength without some prioritization of the fund balance and what the fund will do during this period of declining revenues. Postponing this decision for another year would allow time for evaluation.  Similar to the DCVB, staff would want to structure this support in such a way to maximize reimbursement under the CARES Act. This would be a new appropriation with a new Professional Services Agreement that is separate from the way the City currently does business with the DAC since the funding mechanism would be different. If successful in seeking reimbursement, the capital project could be re-evaluated as well as the fund balance. Mr. Peterson asked for the total amount of the request – is it $201,000? Mr. Stiffler responded that the total request is $360,000. Mr. Guion confirmed that $360,000 is the gap they have identified. Ms. Alutto asked Mr. Stiffler if there is a reason staff would not recommend waiving the requirement that DAC encumber the monies for the AIPPP. Mr. Stiffler responded that there is a community-wide benefit to the AIPPP, while narrowing the focus to the capital improvements funding at the DAC would fill the gap identified. It is a policy decision for Council, but that is staff’s thinking. Mr. Keeler asked for clarification. In reading the DAC request to the City, dated April 1, 2020 it identifies the following: remove or defer lease payments retroactive to January 1, 2020; provide funds being withheld for public art (AIPPP) retroactive to January 1, 2020 of $300,000 to the DAC; grant a separate hotel-motel tax request of $240,000 from the fund balance for DAC general operating support. Adding the $300,000 plus the $240,000 totals $540,000. He is confused about the amount being requested. Ms. Alutto stated that the gap is $360,000. Mr. Keeler stated that funding that gap can then be accomplished by deferring the capital improvement project. That makes sense to him. Finance Committee May 5, 2020 Page 9 of 12 Discussion followed. Mr. Peterson stated he is fine with removing the rent requirement for the emergency period, and deferring the capital improvement project gives the most flexibility in terms of getting back on track as soon as possible. He supports both of these options. Ms. Alutto asked if he wants to defer the lease payments or forgive them. Mr. Keeler asked how much time remains on the current DAC lease. Mr. Stiffler responded their current lease runs through 2026. Mr. Peterson stated the City will own the DAC building this year, correct? Mr. Stiffler responded that is correct. Mr. Peterson asked what encumbrance the City has per month to pay for the building. Mr. Stiffler responded the City has paid $165,000 to date this year for the DAC building, so $12-13,000 per month. Mr. McDaniel stated that the thinking shared by him and Mr. Stiffler is that there is a gap to be filled. From a policy perspective, it is important to keep the operations going by filling that gap so they can continue to provide services. The capital project deferral would be the easiest way to accommodate the gap. The challenge is that all of this has to happen within the hotel-motel tax fund, which has demands. The difference between deferring or forgiving the least payments is not substantial from a cash flow perspective. Mr. Stiffler stated that later tonight, there is discussion scheduled about lease collections and suspension versus forgiveness for other organizations. Mr. McDaniel stated if the lease payment is forgiven, there is less taken away from the capital project. It is not forgiving the lease and the $360,000; it is the $360,000, however, that is spread over the months. Mr. Guion in his initial letter identified where the cuts could be made, but committed they want to continue providing services. The first priority of the fund is programmatic services to the public. The capital project can be revisited later. Mr. Guion stated that the intent was to provide as many options as possible for consideration. That is why there is not a specific request. However, $360,000 is the gap to be filled. Mr. Keeler stated he would support forgiving the lease payments through December. Ms. Alutto agreed, noting that the rest of the gap can be met with deferral of the capital project. Mr. Peterson agreed. He praised Mr. Guion and Ms. Campbell for their talent and leadership. The Clerk reported there was no public input received via e-mail. Mr. Peterson moved to recommend to Council forgiveness of the DAC lease payments through December 2020 and filling the balance of the $360,000 gap from the capital project funding deferral. Mr. Keeler seconded the motion. Vote on the motion: Ms. Alutto, yes; Mr. Keeler, yes; Mr. Peterson, yes. Finance Committee May 5, 2020 Page 10 of 12 Members of Council and staff acknowledged the efforts of the DAC. Status of Bed Tax Grants Mr. Stiffler noted that the table shown displays the bed tax awards made for 2020. At this time, no organization has requested any reimbursement for 2020. They may or may not have incurred expenses, but no reimbursements have been requested to date. Many of the events scheduled April through June have already been cancelled or postponed. Staff expects that list to grow as the pandemic continues. Relative to these grants, staff recommends that the Committee recommend to Council the following actions:  For events cancelled in 2020 due to COVID-19, events will be eligible to receive reimbursements for expenditures as specified in the grant application  Funds appropriated for events to be held in 2020 will not be permitted to be rolled over to future years. If in November, there is a desire to fund some of these events, the 2021 bed tax grant appropriation can be set appropriately. Staff is seeking guidance regarding these two policies. The Committee members expressed concurrence with both policies. There will be a future discussion in any case of how the allocation for bed tax grants is established, but it is appropriate to pause at this time to allow that discussion to occur. Mr. McDaniel added that the first two items on the Committee agenda tonight were referred by Council. He asked that the other items listed be reviewed by the Committee to obtain feedback and vetting. Ms. Alutto stated it is appropriate to have the Committee review these items. Mr. Keeler asked about the reimbursement item. If an event was planned and then cancelled, but they incurred expenses not related to City services, are they eligible to submit a request for reimbursement? Mr. Stiffler stated that if in their grant request and award, they itemized it as an expense, they would be eligible for reimbursement of that expense. The Clerk reported there were no comments received by e-mail. Mr. Peterson moved to recommend that Council approve the two policies as outlined by staff – that for events cancelled in 2020 due to COVID-19, events will be eligible to receive reimbursements for expenditures as specified in the grant application; and funds appropriated for events to be held in 2020 will not be permitted to be rolled over to future years. Mr. Keeler seconded the motion. Vote on the motion: Ms. Alutto, yes; Mr. Keeler, yes; Mr. Peterson, yes. Postponement of Beautify Your Neighborhood Grants Mr. Stiffler stated that $32,000 is appropriated from the General Fund each year for these grants. Staff is proposing that any decision on these grants be postponed until August. This is consistent with previous years when there have been multiple rounds of funding for these grants. They are typically awarded once in the spring and once in the Finance Committee May 5, 2020 Page 11 of 12 fall. Given the financial situation, staff believes it is prudent to postpone these until August and then re-evaluate the status of funds. Staff is seeking Council’s direction. The Committee concurred with staff’s recommendation. The Clerk reported there was no public comment submitted via e-mail. Mr. Peterson moved to recommend that Council postpone consideration of BYN grants until August. Mr. Keeler seconded the motion. Vote on the motion: Mr. Peterson, yes; Mr. Keeler, yes; Ms. Alutto, yes. Forgiveness of Lease Collections Mr. Stiffler stated that the City leases facilities to the following organizations:  Subway at the DCRC - $1,000 per month  Dublin Village Tavern - $3,374.16 per month  Dublin Chamber of Commerce - $ 2,100 per month The Governor issued an executive order regarding the suspension of leases for small commercial businesses and he requested that small business lease operations be allowed to suspend their lease payments for 90 days. Staff is requesting policy discussion on suspending these small commercial lease payments for the duration of the emergency. He added that staff is not seeking to make any changes to contractual agreements on the fiber rental as those are not small commercial leases, nor is staff making any changes to the 5800 Building rental at this time. The Subway, DVT and Chamber are three leases, in addition to the DAC, that would be impacted by this policy decision. Staff is seeking guidance. Ms. Alutto asked if the City has any debt related to these buildings. Mr. Stiffler responded the City does not. Mr. McDaniel added that the City is scheduled to do an improvement as part of the new lease with the Chamber. Currently, the plan is to move forward with that. Mr. Peterson stated that he assumes the Subway is the one at the Rec Center. Mr. McDaniel stated that is correct, and the City shut down that facility for the emergency, which eliminated their business traffic. Mr. Peterson stated it is the right thing to do to forgive the leases. He would be comfortable with forgiving the lease payments for the entities mentioned for 90 days and then revisiting that in 90 days. DVT is a visible part of the community as is the Chamber. Ms. Alutto agreed. After that period, it can be reviewed again. Mr. Keeler asked if the City has received any requests from Subway or from DVT regarding this lease forgiveness. Mr. Stiffler responded that he received a letter from Subway, noting that the City closed their building, yet he is continuing to be charged rent. Finance Committee May 5, 2020 Page 12 of 12 Ms. Alutto requested a motion regarding DVT1 Subway and Chamber. to Council to the payments for 90 days to revisit Keeler seconded Mr. McDaniel asked what the orrt:>rr"'"' date would begin. Mr. Stiffler stated did not bill for May 1 this discussion. So it would April, May and June payments be Mr. McDaniel clarified that the Subway DCRC dosed. forgiveness should be to the time time period Chamber, it would days. Mr. Keeler stated a disclosure standpoint, amount over a this is a versus lease. Ms. Alutto stated that is a good point The Clerk reported was no public comment via e-mail. Mr. stated that legal staff will the lease agreements, so perhaps City Manager should agreements as in this recommendation Mr. Peterson amended his motion Council: • To payment for the of the closure of the Dublin Village Tavern 90 City Manager amend Chamber Commerce leases for a Mr. Keeler, yes; Ms. A!utto, yes. Mr. thanked for their guidance was adjourned 6: Clerk of Council it