NUMU, LGS Rec get partial rent abatement from Los Gatos council

Los Gatos Town Council used leftover pandemic relief cash to cover a portion of the rent payments for New Museum Los Gatos and Los Gatos Saratoga Recreation, but both organizations say it’s not enough.

The town is covering 84% of the organizations’ below market rate payments starting July 2023. NUMU will pay $4,000 of its $25,000 lease payment for its location at 106. E Main St.

LGS Rec will pay $38,088 of its $218,000 lease payment for the Adult Recreation Center, and the full rent of $33,111 for the Youth Recreation Center.

NUMU and LGS Rec had been pushing for full rent abatement for the town-owned properties they operate from, which they say is in line with most other cities. ‘

“In my 25 years working for museums, both very large and very small, I’ve never encountered the kind of arrangement NUMU has with the town of Los Gatos,” said NUMU’s outgoing executive director Ami Davis. “While the full request may not be approved… I’m confident that we did everything we could together to make the case to treat NUMU as a sustainable, integral part of the town of Los Gatos’ strategic priorities.”

Councilmembers and staff said they tried to come up with a compromise for both organizations amid Los Gatos’ growing budget deficit.

Staff determined that 84% of LGS Rec’s budget is used to operate the 55+ program, which offers services for seniors. Council voted to subsidize that work with American Rescue Plan Act funds because it’s in line with the town’s strategic priorities. The town subsidized NUMU at the same level.

“A payment of $4,000 starting in July will not put NUMU out of business, but will dampen its ability to deliver on these efforts,” Davis said. “It’s a small amount to some, but very significant to us.”

“When we can’t give somebody everything they ask for,” Mayor Maria Ristow said. “It’s not because we don’t want to; it’s because we can’t, and we have to think about a vastly bigger picture. So, with gratitude to the two partners we have given vast rent relief, I’m happy we were able to do that.”

The town is facing a budget deficit of $3 million annually over the next five years, and council is anticipating a challenging budget process later this year.

NUMU and LGS Rec had rent payments covered through the beginning of the pandemic, and their three-year lease abatement agreements were set to expire in June 2023.

Davis and LGS Rec Executive Director Nancy Rollett said they want to find a long-term sustainable solution with the town going forward.

Los Gatos used to have a Community Services Department that offered some senior services for the town, but it shut down after the 2008 recession and some staffing changes.

Town Manager Laurel Prevetti said LGS Rec was formed independently from the town by local school districts and expanded to include senior services and other programming. Comparing LGS Rec to other cities that have Parks and Recreation departments isn’t analogous, Prevetti said.