City to pay GB chamber $79,500 to vacate sublease
BY VICI PAPAJOHN Gulf Breeze News vici@gulfbreezenews.com

After weeks of deliberation, the Gulf Breeze City Council narrowly approved paying the Gulf Breeze Chamber of Commerce nearly $80,000 to terminate a $1 per year lease the chamber had to occupy the old Health Department building on Highway 98. The city offered the space to the chamber in 2001 when the chamber was facing dire financial challenges. The city leases the property from the Santa Rosa County School Board for only $1 per year, who in turn terminated the city's contract in order to sell the property.

"I still have a hard time writing a big check out of our CRA (Community Redevelopment Act) funds when I'd rather use the money on beautification or something for the whole city," council woman Bev Zimmern stated. "We have been very gracious with them, allowing them the property for only $1 per year for so long, and we did it to help them."

"I just don't see where we need to write an $80,000 check to the chamber. I have a hard time with it," agreed councilman J.B. Schluter. "We have really gone overboard to help the chamber."

Mayor Lane Gilchrist explained that the benefit of being out of the landlord business outweighed the burden of the sublease payoff, and the funds offset some of the improvements the chamber made as well as the value of the lost lease in the years ahead.

"I don't see that the chamber is eligible for a payoff on such a fair lease, just as I don't see that we should ask the school board for a payoff on such a fair lease, which we have not," Schluter challenged.

"We will also stop paying for half of their receptionist," Gilchrist said. The nearly $12,500 subsidy was paid to the chamber in light of the number of inquires and walkins received at the chamber office that pertained to city or Gulf Breeze Natural Gas services.

Councilmen Fulford and Hoffman voted in favor of the move along with Gilchrist. Schluter and Zimmern voted against the payment.

"We do not want to be responsible for the sale of the property not going through," Gilchrist summarized. "I know the school board is doing the same."

According to Steve Ratliff, Assistant Superintendent for Administrative Services, the school board has discussed paying an additional $79,500 for their share of the buyout to the chamber, but it has not yet approved the payoff.

"Legally I feel we do have an obligation to pay to end the sublease since there was a contract," Ratliff says.

The property is under contract with Tiger Point Land and Development and is expected to close within the next couple of months, according Ratliff. He says the appraisals and title insurance are in hand for the $1.6 million purchase. The purchaser has petitioned the city for C-2 zoning (commercial zoning for an office building).

"We (Santa Rosa School Board) plan to use the funds as an exchange for more south end land for future school use," Ratliff explains. (see related story top of page 1A).