Ballots have arrived in mailboxes and among the issues Longmont voters will decide this year is whether or not the city charter should be changed to allow longer lease terms on city-owned properties.
The current charter, which is the governing document of the city, allows Longmont to lease public land for 20 years. The ballot measure, Question 3D, would extend that lease term to 30 years.
Thirty-year leases have become the normal term for most commercial leases, according to a PowerPoint presentation shared by Sandi Seader, assistant city manager.
The extension could allow the city “greater flexibility to manage development of land and facilities,” according to the PowerPoint. The longer term also could allow for more private-public partnerships, as those partners are more likely to secure a 30-year loan to support their organization, according to the presentation.
Opponents to the measure say 20 years is an adequate term that allows the city to reevaluate lease agreements while considering market rates.
Shakeel Dalal, of Our Best Longmont, an issue committee registered with the city, said such leases are typically private-public partnerships with nonprofit organizations that provide services to the community.
“There are services that the city would like to offer that it can’t afford to … either because of the impending recessions/depression or the need to raise taxes, which is both complicated and undesirable under the current circumstances,” Dalal said.
Private development of facilities such as a higher education campus or convention or performing arts center is more attractive and less risky with longer leasing terms, according to the PowerPoint.
Such public-private partnerships would not be limited to large projects such as a potential performing arts center, but also could be extended to areas such as veterans’ services, affordable housing and other services, Dalal said.
The change to 30-year leases versus the current 20 would allow nonprofits and other organizations to spread out the costs of a loan, making it more affordable to lay down infrastructure and provide services, Dalal said.
“The longer you allow the nonprofit to finance those changes ... the better because it lowers the monthly payment for the nonprofit for a construction loan, for example,” he said.
However, those who oppose Question 3D believe the city should not be entering into private-public partnerships and that further development in Longmont is unnecessary, according to the PowerPoint.
Opponents also argue the city charter should be left as it was originally written.
Should the 3D pass, there is no cost to residents, Seader said.
