A new policy will govern the lease rates charged for space in city-owned buildings.
Once current leases expire, the policy will mean a dramatic decrease to the food bank’s lease, but increased revenue from some other organizations like the Northern Alberta Business Incubator (NABI) and the day care which rents city-owned space.
The new policy sets three categorizations.
The first is nominal lease rates, which is for registered not-for-profits providing a public recreation, culture or social service not in direct competition with a private entity.
The second is non-market value lease rates for not-for-profit entities that primarily offer a direct service for private benefit or are in competition with a private entity. The third is market value lease rates, which will be applied to for-profit entities.
“This will really remove a lot of the politics of it,” said Coun. Cathy Heron. She is in favour of having a policy and not making decisions on a case by case basis.
“We should not be doing one-offs and doing special deals for special people,” she said.
The policy was initially presented to council in January. Council directed administration to get feedback.
NABI sent a written feedback arguing against their proposed categorization, which would put them in the non-market value lease rates.
Coun. Sheena Hughes was concerned about passing the policy without addressing NABI’s concerns.
“I see it as a real potential problem for them,” she said.
Hughes said the policy isn’t necessary and council could have just changed the food bank’s lease rate.
“To me this motion is not actually a solution,” she said.
Others on council noted that NABI’s lease doesn’t expire until 2018, and their classification could be changed in the future.
Council approved the policy as presented in a 6-1 vote with Hughes the lone vote against the motion.
Mayor Nolan Crouse had given notice of a motion that would have let the St. Albert Canoe and Kayak Club know their lease would not be renewed, but opted to not proceed with the motion after feedback from city staff.
The president of the club also appeared at council to speak against their lease not being renewed.
