THOUSAND OAKS : Budget OKd for Arts Plaza Offices

Despite losing their largest tenant, Thousand Oaks officials are moving forward with plans to spruce up 10,000 square feet of potential office space in the Civic Arts Plaza, approving a $320,000 budget to finish the space.

The second-floor offices, which are next to the main lobby of City Hall, need restrooms, interior walls and hallways, carpeting, heating and air conditioning.

Prospective tenants include county Supervisor Frank Schillo and Caltrans, which plans a high-tech computer project to encourage commuters to work from home. Last week wealthy North Ranch resident Charles Probst pulled out of a negotiated lease for a 5,500-square-foot office.

The council voted this week to use money from the developers’ fee fund for the work.

City staff members suggested money for the improvements be taken from the general fund reserve or the city’s insurance fund. But council members protested, saying using money from the general fund was inappropriate and questioning the wisdom of draining the insurance fund, which contains only $400,000.

“If we were hit with a liability of a million (dollars) where would we get it from?” Councilwoman Judy Lazar asked.

After financial director Bob Biery told her the city would have to borrow from other sources, the council asked staff members to find another alternative--the developers’ fee fund.

Mayor Jaime Zukowski dissented, saying she wants staff members to return to earlier negotiations with the Conejo Recreation and Park District for leasing space before going ahead with improvements.

But the city attorney urged council members to move ahead with the improvements, saying Schillo might change his mind about the lease if the space is not ready by May.