SACRAMENTO (CBS13) — The city of Sacramento is giving a big break to the Black Chamber of Commerce on a new lease after the group couldn’t make its rent payment to the city.
Years of money trouble at the Sacramento Black Chamber of Commerce have come to light. The group hadn’t been able to make rent during some months, putting it $30,000 behind in its payments.
IRS documents show the chamber’s been in debt for the past four years, losing more than $14,000 in 2012 alone.
Despite the red ink, CEO Azziza Davis Goines inked a new lease agreement with city hall, allowing her to stay open with a large break—instead of paying the full market value of $1,800 a month, the rent due is just over $900.
City hall had actually started allowing the rent rollback last year and only asked the Sacramento City Council for approval recently.
The city’s deal with the chamber calls on increases in its rent over the next four years. This year it will move to $1,230—still about $600 below market value.
But next year the payments will balloon to $2,500 and $2,600 a month, allowing the city to recoup its losses, as long as the chamber is still open.