Council OKs leasing criteria for nonprofit groups

Tariq Malik

HUNTINGTON BEACH -- Nonprofit groups seeking to sublet space from the

city for their operations will have to meet a new set of criteria aimed

at standardizing the leasing process.

The City Council voted 4 to 1 Monday, with Councilman Peter Green

dissenting, to approve 10 standards for nonprofit groups to meet when

seeking to lease city property for their activities.

The provisions, which include requirements for a business plan, cost

recovery measures and the ultimate approval of the City Council, drew ire

from the Huntington Beach Playhouse, which faces a possible $110,000

annual lease increase should it pass council muster.

“This does not make all nonprofits equal,” said playhouse treasurer

Don Stanton, of the lease standardization. “That the city of Huntington

Beach is going to be in the business of running nonprofits to try and

balance its budget is just plain wrong.”

There are four nonprofit agencies in Huntington Beach that rent space

from the city -- the Boy’s & Girl’s Club of Huntington Valley, the

International Surfing Museum, the Huntington Youth Shelter and the

Huntington Beach Playhouse, whose prolonged lease negotiations with the

city over the use of a Central Library theater at 7111 Talbert Ave. led

an ad hoc committee to study these leases.

“Out of the 10 items we have here in the provisions, we appear to have

hit the mark with 90% of them,” said Green, who chaired the ad hoc

committee. “I think that one more meeting to iron out the final

differences would help.”

Green added that although playhouse officials were aware of the ad hoc

committee’s study, other interested parties were not notified.

Other council members stressed that they have no intention of taking

over the operation of nonprofit groups within the city.

“I think what these lease standards do is allow the council to weigh

the benefits provided by a nonprofit to the city against any subsidy that

might be needed,” Councilwoman Connie Boardman said. “I’ve been on boards

of nonprofits before, and I don’t see anything onerous in asking them to

provide tax statements, which are already required, and the business plan

of a solvent, fiscally sound, organization.”

The business plan, she added, is drawn up by the nonprofit

organization and includes goals, and if they are realistic, there should

be no problem in meeting them.

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