T.O. TO BUY CHAMBER'S LOT, BUILDING; CITY MAY LEASE LOCATION BACK TO STRUGGLING BUSINESS GROUP.

Byline: Sonia Giordani Daily News Staff Writer

The financially ailing chamber of commerce has gotten a boost from the City Council, which voted to buy back the organization's headquarters at Hillcrest Drive and Lynn Road for about $500,000.

Five months late on its $6,500-a-month payments and struggling to repay about $100,000 in debt, the chamber turned to the city last month to help refinance its mortgage.

The council voted 3-1 Tuesday night to pay off the outstanding mortgage and take ownership of the lot and 3,000-square-foot building. The council also agreed to consider various options for use of the building, but made no commitment to lease the space back to the chamber.

``We need to approach this from a financial standpoint,'' said council member Andy Fox, who asked his colleagues to separate the issues of purchasing the building and leasing it back to the chamber. ``Is this a sound financial decision?''

Councilwoman Judy Lazar said the purchase offered the city a chance to buy a prime piece of real estate at a reasonable cost.

With the city facing a $12 million debt of its own to pay off the $63 million Civic Arts Plaza, Councilwomen Elois Zeanah said she opposed the purchase, calling it a ``bailout'' of a private organization. However, she abstained from voting because she objected to Fox's motion to split the issues of the purchase and the lease.

The city staff will prepare a report within two months outlining ways the city could use or resell the building, Finance Director Robert Biery said.

Whether the building is ultimately leased back to the chamber, rented to another entity or is sold, Biery said the $500,000 cost is a good investment.

``We feel that the worth of the building is at least that much if, for instance, we had to buy a piece of land and build a new building of the same size,'' Biery said.

But Councilwoman Linda Parks, who cast the only opposing vote, said the city should not be spending money on real estate.

``We don't need to buy buildings we don't need because right now we need the funds,'' said Parks, who supports reselling the chamber headquarters to raise money for city coffers.

The city purchased the land at Hillcrest Drive and Lynn Road, along with several other properties, in the early 1980s. The lot was sold to the Conejo Valley Chamber of Commerce for $92,000 in April 1989.

Based on that agreement, the city of Thousand Oaks became the security backup for a bank loan to build a 3,000-square-foot building on the parcel, with the city retaining the right to buy back the headquarters should the chamber default on its mortgage.

``We're pleased that the council really followed through with its agreement,'' said Larry Carignan, the chamber's president elect.

With an economic slump this decade and dwindling membership, the chamber has struggled to keep up with its operating costs. In recent years, the chamber's staff has dropped from eight to four, leaving unoccupied space in its building.

While the city deliberates whether to lease the building back to the chamber, Carignan said the organization will continue to look at its own options.

``Obviously, the city could choose to not lease the building back to us. We hope it doesn't come to that. We will continue to negotiate and work in good faith on lease and in the meantime continue to look into other facilities for the chamber to use.''

The chamber recently secured a low-interest loan from an unidentified member to help repay debts totaling about $100,000. With the city now covering the mortgage payments, the chamber could show financial statements in the black before long.