River of Time Museum Lease Agreement 2.24.2026
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River of Time Museum Lease Agreement Background • 25-Year Lease between Town and Museum Association; expires August 15, 2026 • Approximately 5,000 sq ft • Rent $1 annually; Total $25 • Town provided $210,000 • Cost of displays and exhibits • Lighting • Other permanent improvements • Town pays for maintenance, utilities and janitorial services Museum Memberships • 2025 – 117 members • 2024 – 163 members • 2023 – 242 members *Note: Membership data provided by the Museum • 70-75% live in Fountain Hills • 20% live in Rio Verde • 5% live in Valley or Nationwide Net Income Total Revenue • January – December 2022 • $168,014 • January – December 2023 • $123,058 • January – December 2024 • $178,524 • January – October 2025 (closed in the summer) • $75,741 • January – December 2022 • ($50,388) Loss • January – December 2023 • ($42,893) Loss • January – December 2024 • $8,952 • January – October 2025 (closed in the summer) • ($40,297) Loss Profit and Loss Statement *Note: Numbers provided by Museum. Town Requirements • Any consideration of renewal requires an evaluation of compliance with state law • Highest and best use of a Town-owned facility. Gift Clause • Arizona’s Gift Clause exists to protect taxpayers. It ensures public dollars are used for a clear public purpose and that the Town receives fair value in return. • Two common questions: • Is there a clear public purpose; and • Is the Town receiving fair market value? Option 1 – Renew • Renew • Museum is requesting one year • Fair Market Value ($75,000) • Museum is requesting “short-term funding plan” • Museum is conducting a community fund drive • Define Terms Option 2 – Evaluate Future Options • Town building used for Town purposes • Relocate Economic Development and Tourism Department • Retain components of museum • Potential service agreement • Welcome Center and Gift Shop • Training and Workforce Hub • Event Programming • Patio • Adjacent to Centennial Pavilion • Storage Option 1 • Draft new agreement • Council approval before summer recess Option 2 • Notification to museum • In person meeting – January 26 and February 3 • Formal Letter – February 9 • Transition Letter • Museum needs 3 months for deaccession • Evaluate budget implications Next Steps Staff Recommendation and Council Direction • Option 2 to ensure compliance with state law and position the facility to better align with evolving community priorities and long-term strategic objectives. Discussion. Questions?