Memorandum 19-011 HERC Next Steps/Follow up on Task Force Recommendations

Memorandum 19-011

TO:                        Mayor Castner and Homer City Council

FROM:                 Katie Koester, City Manager

DATE:                   January 9, 2019

SUBJECT:          HERC Next Steps/Follow up on HERC Task Force Recommendations

The purpose of this memo is to solicit Council input on the HERC Task Force Recommendations presented at the December 10 City Council meeting.  Any guidance that is given during the work session will be formalized in a resolution to come before Council at the next Council meeting, January 28. Members of the HERC Task Force have scheduled a public open house on Thursday, January 22nd in Council Chambers to answer questions about the report and gather public input on the future of the HERC. Conversation from this work session can inform that meeting and give the public an opportunity to weigh in on a resolution at the January 28th City Council meeting outlining next steps.

Task Force Recommendations and discussion points:

Keep HERC-1 in warm status for next 5 years to allow continued public use while pursuing funding mechanisms for a determined use.

-Discuss accelerating this schedule and trying to find a use that funds the maintenance of the facility in the near term

Make repairs to keep HERC-1 in warm status and prevent further deterioration (HERC Task Force estimate $60,000-$100,000)

-Discuss including any necessary repairs in lease/request for proposal scenario

City Council form new committee to investigate community capacity and funding mechanism to address community recreational and educational needs. Preferred funding is, but not limited to, a public-private partnership.

-Discuss creation of a committee or task force and scope of work. Committee/task force could be as simple as a small review committee that solicits request for proposals for HERC-1 and reviews them.

Leasing HERC-1 is feasible in the near (5-year) and longer term (10-year). A lease or rental agreement is based on building use and associated repair and/or renovation costs. Funding would be based on the agreements and sources of money such public-private partnership among other potentials.

-Is Council on board with leasing HERC-1? If so, what parameters/direction should inform any request to lease HERC-1? One potential scenario is a third party leases the building from the City for a nominal amount and manages the lease. Under that scenario:

-third party pays for any necessary repairs to bring building up to acceptable level of occupancy

-third party is responsible for all ongoing operations and maintenance costs

-third party is responsible for managing property

-third party would recoup costs through long term lease with tenant(s)

-Community Recreation could be a tenant with access to downstairs of HERC

HERC Task Force recommends demoing HERC-1 if a solution for the building is not found within 5 years. If property is demoed, it should be preserved as an open space until a long term plan for the property is developed.

-Discuss timeline and circumstances that could trigger re-visiting the decision to demo the facility

Enc: HERC Task Force Final Recommendation Report from November 27,2018