Chamber, city work out lease Chamber, city work out lease (February 07, 2003)

Deal trades services for free rent

By Candice Shih

For 40 years, the Chamber of Commerce rented land from the city for $1 per year. Last Tuesday that was reduced nothing -- as long as it promises to provide and report on certain services.

The Chamber agreed to continue providing visitor and information services, distributing maps, maintaining a Web site, and working on economic development initiatives with the city and the downtown-based Central Business Association.

It already provides these services, but is now formally committed to continuing to do so. The Chamber will also become more proactive in recruiting new businesses to Mountain View. It currently has a business counseling program and distributes "How to Start a Business" kits.

The council will review annual reports on the Chamber's performance.

"We feel like they've come up with a good resolution to this issue," said Chamber President Carol Olson. "We're fine with being held accountable and making annual reports."

The result of the agreement comes after two years of discussions about whether -- and how -- to charge the Chamber rent and pay for its services. The lease would have eventually cost the Chamber $20,000 a year and the city the same amount. The city estimates, however, that it would cost $42,000 to provide the services the Chamber already offers.

"This is not a giveaway by any sense of the imagination," said Mayor Michael Kasperzak

He said that neither the Chamber nor the city wants to pay for something it can't afford in the current weak economy. "Rather than having a dollar a year lease, let's have an arms-length agreement," he said.

Council member Greg Perry rejected the idea and was the only one to vote against it (Council member Rosemary Stasek was absent, and Council member Matt Neely -- a former Chamber board member -- did not vote to avoid potential allegations of impropriety). Perry said the Chamber, which endorsed candidates in the last municipal election, qualifies as a political lobby which the city should not be subsidizing. He was also concerned that the services that the Chamber provides are not high priorities for the city.

Council member Mary Lou Zoglin disagreed and supported the agreement, calling it a contract for services rather than a subsidy.

The lease is for three years and there is a two-year option. The Chamber is, however, interested in eventually moving out of its small, one-story building next to City Hall. It had been built 40 years ago for two employees; it now houses seven employees who provide for 650 members.

"At this point in the economy, we're not growing at the moment," said Olson. "We're okay in the short term in this building." The Chamber will be developing a business model that will make it independent financially and able to pay its own rent.

Aside from the lease, the Chamber is independent of the city, but as Olson said, the two work for mutual benefits. Every year, the city provides the streets and resources necessary for the Chamber to stage the Art & Wine Festival.

E-mail Candice Shih at cshih@mv-voice.com