Adopt a Resolution of the City Council of the City of Rocklin Ratifying a Waiver of Rent for the  Rocklin Chamber of Commerce's Lease of the Train Station Site, Authorizing the City Manager to Execute an Amendment to the Lease Agreement,  and Delegating Authority to the City Manager for Further Waiver of Rent.

The Rocklin Chamber of Commerce has leased a portion of the Train Station Site located at 3700 Rocklin Road, since July of 2006. The current lease agreement between the City and Chamber was entered into on February 9, 2016, and will expire July 30, 2021. Pursuant to the agreement, the rent for August 2019 through July 2020 is $1000 per month, and increases to $1025 per month for August 2020 through July 2021.

Due to the impacts of COVID-19 on the local business community, the Rocklin Chamber of Commerce has experienced lower than expected new and renewal membership income. In addition, gathering restrictions have caused the cancellation or postponement of several key revenue generating events hosted by the Chamber. Consistent with the City’s long standing support of the Chamber and the benefit the Chamber provides to the Rocklin business community, a 90-day rent waiver was granted to the Chamber for April, May and June of 2020.

Unfortunately, the Chamber of Commerce has not been eligible for a PPP loan due to its status as a 501 C (6) non-profit organization, and, while they are hopeful that the Chamber’s income stream will increase as business picks up in the area, they have requested an extension of the rent waiver through December of 2020.

Recognizing the importance of the Chamber to the Rocklin business community and the City's economic development, staff recommends supporting a rent waiver in order to allow the Chamber to utilize their available funding toward business recovery efforts. Staff recommends executing an Amendment to the Lease Agreement to grant a rent waiver for the months of April through December 2020, and authorizing the City Manager to waive future rent payments under the Agreement.

The fiscal impact of waiving rent for the period from April through December 2020 is lost revenue totaling $9,125 ($3,000 in FY 2019/20 and $6,125 in FY 2020/21).  In addition, should the City Manager waive rent during the remainder of the lease term, the fiscal impact would be up to an additional $7,175 in lost revenue ($6,150 in FY 2020/21 and $1,025 in FY 2021/22).