Michigan City Parks and Recreation Board members on May 7 approved a contract with Valuation Services to perform the first of two appraisals required by state law to establish fair market rent for the Sunset Grill concession area at Northpointe Pavilion.

Staff explained the Sunset Grill concession lease expires Nov. 15 this year and state law requires two independent rental appraisals before a city property lease is advertised. "The law requires us to get 2 separate appraisals," a staff member said, and the contract was reviewed and approved by the city attorney on April 23.

The appraisal will cover the upstairs leased space and the concession room downstairs — not the entire building — and staff noted appraisers will struggle to find comparable properties because of the lakefront view. The board was told that if the board chooses a lease longer than three years, the city council must also approve such a lease.

The board approved the valuation-services contract and authorized the staff signature; staff indicated they will return with the second appraisal firm and continue the formal advertising and bidding process in accordance with state law.