MERIDIAN —
The city will again change its lease agreement with a company renovating a downtown building for a new police department.
The Meridian City Council on Tuesday tabled action to execute a lease agreement with Meridian Law Enforcement Center, LLC because changes to the lease were not ready.
The city first adopted a lease with the company in May, 2011, but changed it in October. Meridian Law Enforcement Center is a an entity of Watkins Development, the firm which is contracted as a development consultant for the city.
"Since then (October) there have been some changes and some new thoughts that came about," said Barbara Henson, Councilwoman for Ward 3. "I don't know what they'll all be because the attorneys and Mr. Watkins have been in the process of getting those together. Whatever they bring before us we will take action on and we'll have time to study them before we do anything."
Henson said it was her understanding that council members will get a copy of the lease changes some time today so they will have time to examine them before a recessed meeting from Tuesday reconvenes Friday at 4 p.m.
The lease in question is to rent a new police station from Meridian Law Enforcement Center after Watkins Development renovates the former Cowboy Maloney building on 22nd Avenue, which was originally a grocery store.
Renovations began more than a year ago and were expected to be finished in this past spring, but money woes slowed down work as David Watkins waited for approval on tax credits for the project.
As it stands now, the terms of the lease agreement call for the city to start paying rent after the building is completely ready.
The city will pay rent over a period of 20 years for a minimum of $8.2 million, including $2.1 million the city will pay up front from funds derived from police department seized property.
The annual rent will be $305,000,allowing for possible increases based on the consumer price index every five years.
After 20 years, the city has the option of buying the building for $100.
The landlord will be responsible for insurance on the building while the city is responsible for insurance on its property within the building.
Under the contract, the landlord only provides maintenance to the outside walls, roof, foundation and exterior plumbing. The city is responsible for all other maintenance, including indoor plumbing and possibly, maintenance to HVAC systems.
The landlord can sell or mortgage the lease or use it as collateral. The contract does not require that the same lease be continued if the property is sold.
Local News
June 20, 2012
City to change lease again
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