By Kristine Thomas
Kristen Beyer was hoping the Mt. Angel City Council would reduce the lease or at least keep it at $250 a month for the Littlest Angel Preschool in Mt. Angel.
“I didn’t expect them to lower it to $50 a month,” said Beyer, who is the president of the preschool’s board of directors.
On April 6, the city council voted 5-0 to allow the preschool to lease the city’s building, the Ebner Park Clubhouse, for $50 a month. The preschool had been paying $250 a month since 2004.
Councilor Andrew Otte recused himself from voting and participating in the discussion because he represented the preschool in contract negotiations with the city in 2008. Councilor Kelly Grassman said she contacted Don Crabtree at the Oregon Ethics Commission who told her she could participate in the discussion and vote on the lease even though she has a child attending the school and volunteers there.
The council agreed to give the Littlest Angel Preschool a five-year lease from May 31 to June 1, 2014 and second lease for $100 a month from June 1, 2014 to May 31, 2019.
Councilor Mike Donohue said he believed reducing the rent to $50 a month was the right thing to do since the city council broke the lease agreement with the preschool in 2002.
“I believe the council should finish the original contract that it promised the preschool in beginning,” he said. Councilor Teresa Kintz added, “If you have something in writing, you should stick to it.”
The city council and preschool had agreed to a 10-year lease in 1996. In 2002, the city council voted to modify the lease from $50 a month to $150 a month with an escalator each year to the set rate at $250 a month in 2004. The preschool agreed to the change.
Interim City Administrator Pete Wall wrote in the staff report one reason for the cost increase in 2002 was to “supposedly to allow the city to build up funding to replace the roof on the building. The roof leaks and has caused some minor damage to ceiling tiles.”
At the council meeting, Beyer said neither she nor the board “feel the city has any justification for an increase in rent” especially since the city hasn’t maintained the building or the grounds. She said the preschool has paid more than $14,000 over the original rent set in 1996.
Beyer said parent volunteers invested both time and money providing for the upkeep of the building and its grounds.
In the staff report, Wall wrote rather than increasing the lease by $50 every two years, that the increase should be based on the consumer price index. He understands the preschool would like a lower lease.
“The council can set the lease at any amount they desire,” Wall wrote, “but I would caution against setting it too low or funding could be difficult for the city to complete future exterior work on the building. ”
Beyer said once the roof is replaced, there are no major improvements needed. Wall said the city plans to replace the roof this summer and estimates it will cost $7,000 to replace roof along with damaged ceiling tiles.
“We are really grateful to the city and the city council for doing this,” she said. “They believe it’s important to keep the preschool going and this will allow us to keep costs low in these financial hard times.”
