DISCLAIMER

RECREATION, LIBRARIES AND AUTHORITIES COMMITTEE


08-0419R


RESOLUTION AUTHORIZING TERMINATION OF AGREEMENTS WITH TEMPLE ISRAEL OF DULUTH, INC., AND JEWISH EDUCATION CENTER FOR OPERATION OF A RECREATIONAL FACILITY IN THE EAST HILLSIDE NEIGHBORHOOD.

CITY PROPOSAL:

     RESOLVED, that the proper city officials are hereby authorized to terminate an agreement with the Jewish Educational Center bearing City Contract No. 9983 and an agreement with Temple Israel of Duluth bearing City Contract No. 11645 and to execute any documents necessary thereto.


PARKS&RECREATION/ATTY


STATEMENT OF PURPOSE:  The purpose of this resolution is to authorize the city to terminate two agreements entered into more than 30 years ago with the Temple Israel and the Jewish Educational Center for the use of space in the basement of the Temple building for recreational purposes.


The Temple owns two lots at the southeast corner of 16th Avenue East and Second Street upon which the Temple building is located. The city owns the remainder of that block except the three lots at the corner of 17th Avenue East and First Street.


In 1966, the city and the Temple, through the Jewish Educational Center, entered into an agreement pursuant to which the Temple would install approved recreational facilities on the three lots directly southeast of the Temple which would be used by both the city and the center. In 1976, when the Temple determined to construct an addition to the sanctuary, the city agreed to pay for the construction of a 39'x33' “basement” under it which the city would use to administer its recreational programs on the adjacent property and in the area.


The city has used this facility since its construction in 1975; it pays no rent, having paid to construct the facility, but the city continues to be responsible for all operating costs of that portion of the building such as heat, lights and staffing.


The parks and recreation department has determined that there is no need for the building space, either now or in the foreseeable future, especially given the city’s limited resources, and there are savings to be realized by not having to pay the operating costs on the structure. Since the city has “amortized” its costs of construction by its “rent-free” use of the space for 30 years, the best course for the city is to relinquish control over the building space and allow the Temple to use or rent out the space. This is the course of action authorized by this resolution. The city will, of course, retain ownership of its recreational property and continue to make it available for recreational purposes.