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• Carpet/Paint — The charitable gambling organizations have expressed concern about the condition of the carpet and paint at the bingo hall. The landlord is going to obtain a price for new carpeting. District Council 82 may have a training program available that could paint the bingo hall. This would not only spruce up the space, but it would also avoid an extra expense item for the charities and landlord. More research is being done on this option. • Proposal — Staff has asked for the following lease revisions: 1. Year -end adjustment of extra expenses to actual. This includes utilities, cleaning and supplies, and other improvements /repairs that another tenant would normally be responsible for as leasehold improvements. (The estimate for 2004 is $64,700 and is built into the overall per session rent calculation.) 2. Reduce per session rent from $238.40 by $9.82 to $228.58 per session. This amount was based upon a $6.00 per square foot gross rent for 10,952 square feet of leaseable space (comparable rent for other large space tenants (range was $4.75 to $6.00) and adding common area maintenance (CAM) of $4.13 per square foot, and adding the extra expense estimate of $64,700 (see number 1 above). We then divided by the 10,952 square feet to get a total cost of $16.04 and added on the 15% overhead factor due to the nature of this lease. The total square foot cost ended up at $18.45 versus the $19.24 being generated under the current arrangement; or .79 per square foot. Computing that back to a per session charge, the savings of $9.82 per session results (884 sessions per year). 3. A rebate of $6.00 per session payable to each charity based on their number of annual sessions that is attributable to lease income generated by JJP for the concession stand area. Given that this lease (JJP & Shopping Center) would not exist but for the Bingo Hall, staff feels the charities should receive credit for the income over and above a $6.00 gross lease amount. (The shopping center owners generate $6.98 per session over a large space rent rate (what the Bingo Hall should be based on). Staff proposes that the owners keep $.98 per session for overhead and administrative factors. Bob Grootwassink and Mark Hotzler are discussing this issue and have yet to respond as they are out of town. As you can see, there are many factors related to charitable gambling compliance, and no one solution to the problem. The subcommittee will continue to work on these various elements, and will keep the Council updated on the matter. cc: Bob Grootwassink