The Mountain View City Council approved the 580 Castro St. lease last week, canceling a former deal, in which the chamber would have paid up to $20,000 annually in rent to the city for the 21,000-sf space. In response to the former deal, which was negotiated in 2001, the chamber requested a fee-for-service deal, offering to provide city services instead of paying rent.

The city has rented the building to the council for the past 40 years at a rate of $1 per year. However, recently, city officials have frowned on this agreement, saying that the chamber's actions are not a priority for the city and should not be subsidized. On the other hand, many argue that the chamber plays a key role in organizing city activities and helps attract new businesses to the area.

According to the new lease requirements, the chamber must submit an annual report to the city council outlining the city services provided.