A new contract between the city of McMinnville and Red Road Business Park is under consideration.
The contract would secure the portion of the building used by the Police Department for the next three years at $3,500 a month.
“Since we are looking at entering into a new lease agreement for the police department, we might want to discuss it,” said Alderman Steve Harvey. “I would like to open it up for discussion and get some feedback. I don’t think anyone wants to move on anything tonight. I know the deadline is up, but I don’t think there is a huge rush to sign the lease agreement immediately.”
A joint meeting of the city Safety Committee and Building and Grounds Committee was held Tuesday to discuss it. In attendance were Aldermen Mike Neal, Everett Brock, Ryle Chastain and Ben Newman.
Newman said, “Can we ask them to lower the rent?”
The city leased 11,409 square feet of the building back in 2009, signing a four-year contract. For the first 13 months, no rent was charged with the city agreeing to a gradual increase that started at $1,000 a month in year two to $2,000 a month in year four. A three-year lease extension was for $5,704 a month.
When a new three-year lease was negotiated in August 2013, rent was reduced from $5,704 to $3,500.
City administrator Bill Brock said he spoke with an owner of the building and was told the rent was “rock bottom square footage price” and it would not be lowered.
Everett Brock said the building’s owners did approve removal of a stipulation in the contract that re-quired the city to pay roof maintenance.
“We’ve talked about rent, but we’re paying a small amount of money for what we’re getting,” said Everett. “I’m not as worried about price as I am some other things, like roof maintenance.”
Bill Brock said the city also agreed to extend the right to terminate the contract from a six-month no-tice to a one-year notice.
The lease is for three years but it also includes a two-year option to extend, as long as the tenant noti-fies the landlord in writing within 90 days of expiration of the initial three-year term.
Committee members unanimously approved the lease. It will be sent to the Board of Mayor and Aldermen for its consideration.