Portsmouth mulls future tenants of town-owned Brown House

Some members opposed to entering commercial real estate market

By Jim Mcgaw
Posted 1/15/19

PORTSMOUTH — Who should be allowed to rent office space at the town-owned Leonard Brown House?

That was the big question during Monday night’s Town Council discussion on a …

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Portsmouth mulls future tenants of town-owned Brown House

Some members opposed to entering commercial real estate market

Posted

PORTSMOUTH — Who should be allowed to rent office space at the town-owned Leonard Brown House?

That was the big question during Monday night’s Town Council discussion on a proposed rental fee structure for the historic Glen Farm building, currently being used as headquarters for the town’s Recreation Department.

The yellow home on Linden Lane, built in the mid-1800s for farmer Leonard Brown, became the town’s responsibility in the late 1980s after voters approved a bond issue to purchase the farm. For years the nonprofit volunteer group Friends of the Brown House kept the building from falling into disrepair, and then handed it over to the town for a major renovation job in 2017.

Now the town wants to find some other tenants to keep Recreation Director Wendy Bulk company in the two-story, 3,200-square-foot building. 

“There are a number of empty rooms that could be used for offices and there’s an interest in renting those spaces,” said Town Administrator Richard Rainer, Jr., who said a revenue stream would help fund Ms. Bulk’s salary.

“The house is not free,” Mr. Rainer said, noting expenses such as utilities, waste disposal, snow removal, janitorial services and general maintenance and upkeep. “We forget: Once something is built, the project doesn’t stop there. You have to maintain it.”

Ms. Bulk recommended a $550 monthly fee to rent out each of the four offices on the second floor, plus another $250 to be paid by the local prevention coalition, which would amount to $29,400 in annual income. Annual expenses would total about $14,000, so the town’s annual profit would be about $15,400, she said.

“The fees are based on fair market value,” said Ms. Bulk, noting the numbers were recommended by a local Realtor after evaluating the property.

Commercial concerns

Some council members, however, suggested tabling the matter until a policy was in place to determine what types of tenants would be allowed to rent space.

Council member Daniela Abbott said she had “serious reservations” about the town entering the commercial real estate market. “I don’t think that’s what our constituents want,” Ms. Abbott said. “I personally would cross out anyone who solely wants to operate there for commercial purposes.” 

While acknowledging the need to fund the upkeep of the building, she suggested the town come up with a grading system for different organizations who want to lease space there. 

Mr. Rainer replied that the town “has crossed this bridge before,” and pointed to the Melville Campground and the polo grounds, both of which are rented out by entities that turn a profit.

The bottom line, the administrator said, is that the town needs to look at ways to take the burden off taxpayers. “This building costs money. Wendy has a salary that has to be paid,” he said. “The longer we delay this, the more revenue we’re not going to make.” 

Council member Linda Ujifisa said there are many unanswered questions: Should a nonprofit group receive a discount on rent? Would the town’s fee structure be similar to the school district’s?

Council member Len Katzman said he’d oppose any long-term leases such as five or 10 years, and would prefer a “mixed-use” approach rather than a commercial use of the property. 

Whatever the town decides, council member Keith Hamilton said, it’s important that revenue generated by the Brown House stays in a budget line item for preventative maintenance on the building. “I don’t understand when making a profit became a bad thing in this country, but apparently it has,” he added.

After Mr. Rainer agreed to study the issue further and come back with a proposed scoring system, the council voted 6-1 — with council member Andrew Kelly opposed — to table the matter until Feb. 11. 

“I think this is a great start to understand what the value of these offices might be,” said Council President Kevin Aguiar. “This will help us make the right decision going forward.”

Prevention coalitions

The Portsmouth Prevention Coalition has had an office in the Brown House for the past two months, but so far has not paid any rent. In a Jan. 6 letter to the council, Coalition Chairperson Marianne Raymo said she hopes that doesn’t change.

“As a town entity that brings much public value and support to the youth of the community, I do not believe we should be paying for an office space owned by the Town of Portsmouth,” Ms. Raymo stated in her letter.

Liz Morley of the Portsmouth Prevention Coalition told the council the Newport County Regional Prevention Coalition is interested in leasing two offices in the building, and has the money in its budget to cover the rent.

“It would be a wonderful asset to the town to have the regional prevention (coalition) there along with the local coalition,” Ms. Morley said

The local coalition is expected to discuss its rental agreement further at the council’s Jan. 28 meeting.

Leonard Brown House, Brown House, Glen Farm, Portsmouth Town Council

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