Chamber Building Sale to Be Considered

The City Council on Tuesday will consider whether to allow the Chamber of Commerce to sell its building on Hillcrest Drive to a longtime Thousand Oaks resident hoping to lift the business booster group out of debt.

At issue will be whether the city, which co-signed the loan for the chamber building a decade ago, should allow the chamber to possibly sublease some space to other tenants to cut rental costs.

The council will also consider lifting a deed restriction on the property that would require the building to be sold as a lot for a single-family home if possession is transferred from the Conejo Valley Chamber of Commerce to another person--as is being proposed.

The vote could cap a painful period for the chamber, which was approached by a private buyer after falling into debt and getting behind on mortgage payments.

The buyer, retired building contractor Robert Barker, proposes to purchase the building for $850,000 and rent it back to the chamber for a price that has not been determined. The building would be leased to the chamber for two years, with two options to extend that term for five years each. After 12 years, the chamber and Barker could continue the arrangement if desired.

Last month, the City Council voted to buy the chamber building--by paying off $500,000 remaining on the mortgage--and perhaps leasing it back to the business organization.

The city, which had co-signed the chamber’s building loan, had the option of buying the building outright if the chamber ever fell more than 120 days behind in payments--which it had.

Before the city’s purchase became final, Barker came forward.

“We’re happy to be moving forward,” said chamber president-elect Larry Carignan. “And we’re addressing the fact that some council members were reluctant to give us government funds for this. This allows the chamber to take care of the sale on our own and not involve the city in the transaction. . . . Everyone wins in this situation.”

Under a deal reached with the private buyer, the building could only be used for public--not commercial--purposes were the chamber to leave.

The private purchase agreement would ensure that the debt-strapped chamber would have a permanent home and that the city would not have to purchase the building. Escrow could close in September.

In recent years, the recession and declining membership had catapulted the chamber about $100,000 into debt. Last month, a chamber member gave the organization a low-interest loan to pay off $80,000 to about 50 creditors. Before the purchaser came forward, the group was about $25,000 behind on mortgage payments for its building.

After repaying debts, the chamber expects to have about $250,000 left over from the sale.