Possible Historical Society Lease Changes Prompt Concern

New Port Richey city officials are considering the idea of putting the West Pasco Historical Society on a shorter lease.

The society's headquarters - called the Rao Musunuru, M.D. Museum and Library - sits in downtown New Port Richey on a parcel of land adjacent to Peace Hall near Sims Park.

On May 19, 1987, the city leased the land to the society for 25 years in an agreement that was set to end this past May. The lease was set to automatically extend last month for another 25-year term. The society pays $1 a year for the land.

Rather than allow the renewal to happen, city council members decided to approve a temporary two-month extension to the lease. This gives them time to discuss some possible changes to the terms.

Now, it’s looking like the city could present the society with an addendum to extend the lease for a 15 year-term with two five-year options to renew. City officials are also looking to add a clause that permits the city to terminate the lease without cause, with 180 days notice.

The society could also be asked to cover the cost of city utilities, which the city pays for under the current agreement. There are also questions about exactly how much land will be included in the lease. 

Council members have not taken an official vote on the changes. Nor has it been officially drafted. A decision would need to be made by the end of July 19. 

Society members have some concern, including the possible shortening of the lease and the potential for the size of the property included in the contract to shrink.

“What has the society done, or not done, to make this a possibility?” society president Bob Hubach asked the council during a June 12 workshop.

Hubach told the council the society wanted the 25-year extension.

City officials agreed a little more than a week before the lease was automatically renewed to instead extend the lease for two months to address questions about the size of the Historical Society parcel. When the lease was discussed in April by the city council, the possibilities of shortening, adding a new termination clause and examining the size of the parcel were raised.

An initial proposal that the city attorney floated suggested a 5-year lease extension, but City Council members at a work session Tuesday indicated they wanted to offer a longer lease period.

City Councilman Bill Phillips suggested offering the 15-year lease extension with renewable options.

“I was looking for a little less time than we had before only since times have changed since we had the original,” Phillips said. "I don't imagine that there will be any issue at the 15-year mark, and I don't imagine there will be any issue at the 20-year mark."

The historical society building reopened in September 2011 after an intensive remodeling project that was completed The museum is run entirely by volunteers.

The city currently pays for the society's water and sewer utilities and officials say the city covers mowing the lawn. With the city being in a financially rough situation and looking to cuts costs, officials have suggested the society pay for both groundskeeping and the city utilities.

Another question that needs to be answered is how much property will be included in the new lease agreement. It was assumed that the current lease included everything within the public right of way near the building, including the nearby gazebo, up to the fence on the west that separates the museum from Peace Hall.

A legal description of the land covered by the lease shows it is actually “considerably smaller,” according to City Manager John Schneiger.

The society plans to stake out the parcel it believes should be covered in the lease for council members to look at when they, June 16.

West Pasco historian, Patch columnist and life-time society member Jeff Cannon offered his opinions on the lease. He was not speaking in an official capacity.

“It would be a shame for us to lose a valuable part of our community over a lease or a termination without cause, especially since so much time, effort, and taxpayer dollars went into refurbishing the historic building,” Cannon said.

Even so, Cannon understands the city is dealing with a financial crisis.

“We know the city is in dire financial straits and that cost recovery has been on everyone's mind lately, however, in my own opinion, the society should also ask for a termination clause that if the city's charter is ever revoked by the Governor due to financial instability, the building and property revert to the West Pasco Historical Society and its members in perpetuity," he said. "Furthermore, a lease termination without cause can not occur within one year from any discussions or actions towards the city's charter being revoked.”

Article revised and updated at 6:36 a.m. June 15