A revised lease agreement between the city of McMinnville and the owners of Red Road Business Park that will save the city $26,448 a year will be under consideration Tuesday.
McMinnville Mayor Jimmy Haley has been negotiating with David Hill, a co-owner of the property, regarding changes to the contract for housing McMinnville Police Department. He says he is happy with the changes.
“They were willing to work with us and I’m grateful for that,” Haley said. “We knew this was a temporary location for the police department back in 2009. Maybe this will encourage us to get motivated to find a permanent home for the department.”
Among the most desirable changes will be the cost of rent. The city’s rent will be $3,500 a month beginning in August. If the lease agreement remains unchanged, rent will increase to $5,704 at that time. The savings is $2,204 a month or $26,448 a year.
When questioned if he believes the board will accept the changes to the lease, Haley stated, “This is what we have to do. We don’t have a lot of options at this point. We have to enter into a new agreement, then consider options for relocation.”
Other changes to the contract:
• The contract is for three years.
• Termination of the lease agreement can be made by either party giving a 180-day written notice.
• When the city vacates, improvements to the facility made by the city will be left intact.
The city must also make a “good faith effort to stop the leaks” by doing repairs on the roof, which the city was required to do under the current contract but did not.
According to maintenance in the contract, the “Tenant shall be responsible for maintenance of all plumbing, electrical, roofing, HVAC, ventilation and window dressings utilized by tenant in its occupied area. Tenant shall be responsible for maintenance of modifications and upgrades made by tenant.”
Officials will be considering the revised lease agreement during the regular session of the Board of Mayor and Aldermen at 7 p.m. Board meetings are held on the second floor of city hall.