For years, the Sebastian River Art Club has had exclusive use of the west end of the Arts Center located on Main Street next to City Hall. But now, that exclusive right is being challenged as one City Council member raises questions about the club’s nonprofit status.
“I’m not out to kick anybody out of that building,” Councilwoman Andrea Coy said during a recent workshop to discuss the Art Club and use of the Arts Center. What she wants, she told the assembled crowd, is a legitimate lease with a legitimate nonprofit. She said at last week’s Council meeting that she has yet to see documentation proving the club is recognized by the IRS as a nonprofit.
At issue is the Art Club’s use of the facility as well as the management of various other groups’ use of the east side of the building.
The Stepping Stone Quilters, an embroidery club, the Boy Scouts, the Historical Society, and the Power Squadron all make use of the building at various times. And other organizations, including Weight Watchers, have asked to use the center.
“It’s a well-used space,” Mayor Richard Gillmor said. Gillmor is a former president of the Sebastian River Art Club.
For his part, Gillmor told Coy that the Club had sought a 501(c)3 designation from the IRS but was ultimately turned down. Instead, the group received a 501(c)7 label for nonprofit hobby club.
However, he was not able to provide supporting documentation at the workshop. During the Council meeting last week, Gillmor said the IRS was mailing a copy of the paperwork, which is expected to arrive this week or next.
Gillmor expressed concerns regarding the workshop and the need for a Council-approved lease. “Everyone’s getting along,” he said, adding, “if it’s not broke, don’t fix it.”
When the Council originally approved the Art Club’s exclusive use of a portion of the Arts Center, the Club signed a draft agreement with then-City Manager Al Minner. A formal lease was not voted on by Council.
Coy, who established the Senior Center next door to the Arts Center, has a no-profit form on file and a Council-approved lease for the group that runs the center. She told the audience that she wants the same from the Arts Club.
Coy said having a formal lease would protect both the Art Club and the City and spell out who is responsible for what within the building. Council, not having a lease with the club, could choose to demolish the building outright at any time – though there are no current plans to do so.
Councilman Bob McPartlan, the only other council member to attend the workshop, agreed that having a lease would be a good idea for all involved.
“I want you in the building legitimately,” Coy told the Art Club members in attendance.
Following the workshop, City Manager Joe Griffin said he was beginning to flesh out a lease agreement with the Art Club.
As he sees it, Griffin said he’d propose leasing the entire Arts Center building to the Art Club and empower the club to manage the schedule for all the other organizations that wish to use the space. Currently, the City Manager’s Office is tasked with keeping the schedule, which takes time to administer.
The lease, he said, would simply be a matter of formalizing what is already happening at the Arts Center and spelling out each side’s responsibilities.
In the event that conflicts arise between the Art Club and the other organizations, Griffin said his office would be the arbiter and make the final determination to resolve the issue.
Griffin crafted a draft lease and is awaiting City Attorney Bob Ginsburg’s review before requesting an informal meeting with the Art Club and other organizations. Once he has the attorney’s sign-off and the groups’ input, he said he’d take the draft lease to Council for approval.
