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HomeMy WebLinkAbout3/19/2003 - STAFF REPORTS (13) DATE: March 19, 2003 TO: City Council FROM: Assistant City Manager-Administration SUBJECT: Ruddy's General Store Museum RECOMMENDATION: It is recommended that the City Council approve a Minute Order terminating Lease Agreement 3843 with the 1930's General Store Museum, a California nonprofit benefit corporation, for certain real property located at 221 South Palm Canyon Drive. It is further recommended that the City Council decide whether to take the following actions: (1) Accept and assume control of the 1930's General Store Museum and its unique collection of period merchandise; (2) Authorize the City Manager to designate three City employees and/or representatives to serve on the Board of Directors of the 1930's General Store Museum until the dissolution or merger of the existing nonprofit corporation with another qualified entity; and (3) Appoint a subcommittee comprised of two member of the City Council to work with a subcommittee consisting of two Library Board Members to examine the current and future uses of the Village Green. SUMMARY: The City has learned that James Ruddy,the founder of the 1930's General Store Museum, has resigned from the Board of Directors due to health reasons. The current Bylaws and Articles of Incorporation governing the nonprofit corporation provide that upon the voluntary resignation of Mr. Ruddy, the Museum's assets, including its collection and a sizable trust account that has been established to support the museum's operations, are to be distributed to the City or to a nonprofit fund, foundation or corporation established by the City and organized for the continued operation and maintenance of the Museum. If the City Council rejects this gift, the Museum's assets will revert back to Mr. Ruddy or his estate. BACKGROUND: The 1930's General Store Museum is a California nonprofit benefit corporation established in 1985 by local philanthropist and collector James Ruddy. The Museum, which is located in the Village Green, is a meticulous recreation of a small town general store from the 1930's. The Museum was originally constructed by Mr. Ruddy at his expense and was dedicated back to the City. Mr. Ruddy currently leases the building from the City to house his collection of more than 6,000 unused items and individual products-95% of them filled with their original product. The Museum is open Thursday through Sunday from October through June, and Saturday and Sunday during the summer months (July through September). Thousands of visitors wishing to relieve our past have visited the General Store over the last 18 years. The General Store Museum is governed by a three-member Board of Directors. The current Board of Directors consists of Mr. Ruddy, his wife Sue and the City's Librarian Margaret Roades. 914 Ruddy's General Store Museum March 19, 2003, Page 2 The current Bylaws and Articles of Incorporation provide that upon the voluntary resignation of Mr. Ruddy, the Museum's assets, including its collection and a sizable trust account that has been established to support the Museum's operations, are to be distributed to the City or to a nonprofit fund, foundation or corporation established by the City and organized for the continued operation and maintenance of the Museum. Due to health reasons, Mr. Ruddy has resigned from the Board of Directors and has asked the City to take over the Museum's operations as contemplated in the Articles of Incorporation. To ensure the continued operation and maintenance of the Museum, Mr. Ruddy has established a sizable trust fund and is willing to gift this fund to the City. The Museum employs a part-time curator and has other nominal expenses including maintenance, insurance and cleaning services. Based on the interest earnings from the trust fund and revenues generated from admissions to the Museum, City staff believes that the Museum can be operated without financial support from the City. City staff has meet with Mr. Ruddy several times to discuss the future of the General Store Museum and the possible transition of the Museum to the City. Staff has also met with the Library Board to discuss the possibility of the Library assuming responsibility for the Museum and its collection. The Library Board has expressed concern about taking over the Museum and believes that a comprehensive plan to address the current and future uses for the Village Green is needed. The Board has suggested that a joint committee consisting of two City Council Members and two Library Board Members be convened for the purpose of exploring the current uses within the Village Green and how this historic district should best be operated. Mr. Ruddy has indicated that the City must decide whether or not it is going to accept the Museum and its collection by the end of March, or he will have to find another interested party to take over the asset. Although the City Council does not have to accept Mr. Ruddy's gift and could allow the Museum's assets to be transferred to another entity, City staff believes that the General Store Museum is an important tourist attraction that draws numerous visitors to the Village Green Historic District. If the City does not accept Mr. Ruddy's gift, it is likely that the asset will be moved and the building will be vacated, leaving a significant void in the Village Green. If the City Council elects to accept the Museum's assets, it is recommended that the existing Board of Directors be replaced with three new board members consisting of City employees and/or representatives. Once the new board has been installed, the directors can amend the existing Bylaws and Articles of Incorporation to allow the General Store to continue operating until a comprehensive plan for the Village Green is completed. Once a plan for the Village Green has been accepted, the board could decide to merge the General Store with another entity or dissolve the corporation and dispose of the Museum's assets on terms and conditions that the board deems to be in its best interests. Troy L. Butzja',ff;Assistant City Manager-Administration APPROVED City Manager Attachments: 1. Minute Order Terminating Lease Agreement 3843 2. Minute Order Accepting the 1930's General Store Museum and its Assets /A�- MINUTE ORDER NO. TERMINATING LEASE AGREEMENT 3843 WITH THE 1930'S GENERAL STORE MUSEUM,A CALIFORNIA NOW PROFIT BENEFIT CORPORATION, FOR CERTAIN REAL PROPERTY LOCATED AT 221 SOUTH PALM CANYON DRIVE. --------------- I HEREBY CERTIFY that this Minute Order, terminating Lease Agreement 3843 with the 1930's General Store Museum, a California nonprofit benefit corporation, for certain real property located at 221 South Palm Canyon Drive was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 191h day of March, 2003. PATRICIA A. SANDERS City Clerk �i MINUTE ORDER NO. ACCEPTING THE 1930'S GENERAL STORE MUSEUM AND ITS ASSETS --------------- I HEREBY CERTIFY that this Minute Order, accepting the 1930's General Store Museum and its assets was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 19`h day of March, 2003. PATRICIA A. SANDERS City Clerk 1./