The Crested Butte News Serving the Gunnison Valley since 1999
Prioritizing non-profits but charging market rate
[ By Mark Reaman ]
Crested Butte is updating its policy for renting the several spaces it owns and leases to other entities. The new policy approved through resolution at the February 22 council meeting makes clear that local non-profit agencies get priority for the opportunity to lease a space for up to five years at a time but that rents will be close to the current market rate. If that is a hindrance to a particular non-profit, the town would consider providing a grant to help with lease expenses.
If more than one non-profit is interested in a town space, then a lottery system will be used to pick the renter. Some non-profits will continue to get longer term leases or leases that run for extended periods of time longer than the standard five-year lease. The Center for the Arts would be one such example.
Currently the town has 26 unique tenants in 14 locations. In 2017, 16 of those tenants were occupying town space without a current lease. Since then, staff has updated the leases and the council has drilled down to formulate an official rental policy. Last year the town received about $64,000 through its rentals.
“It is important to foster the non-profits in town,” said councilmember Mallika Magner. “I don’t want them to get in trouble due to escalating rents. That’s something that has been on my mind.”
Councilmember Chris Haver reiterated that if a non-profit was in need of rental assistance, it could apply for help through the town’s grant cycle.
“All the leases come before the council so we can evaluate that on an individual basis,” noted councilmember Anna Fenerty.
“All of our spaces are small so the rent won’t be huge but there will be a significant increase in some rents for sure,” said town manager Dara MacDonald.
“Mature non-profits worry about hidden subsidies. They need to know what their true cost of operation is and have a plan for covering those costs. For new non-profits that need incubation, I support Mallika’s concern,” said mayor Ian Billick.
“I share that concern as well,” added councilmember Jason MacMillan. “We need to see the amounts of the increases. But I appreciate this new direction and flexibility we’ll have to help support our non-profits.”
Staff will research the current market rate for similar business rentals and apply the price to upcoming contracts.
