Broken Arrow City Council
Meeting of: 09-03-2024
Title:
title
Approval of and authorization to execute a lease agreement with Peyday Realty, LLC, for space at the Main Street Plaza Shopping Center, 1635 South Main Street, to house the Service Oklahoma Driver License Exam Site
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Background:
In 2007, the City Council approved an Interlocal Agreement with the State of Oklahoma, Department of Public Safety (DPS), to establish a Driver’s License Test Facility in Broken Arrow. As part of the Agreement, the City was responsible for identifying a suitable space for the DPS facility. Since the beginning, the facility has been housed at 1635 South Main Street, and the relationship between the City of Broken Arrow and Service Oklahoma (formerly DPS) has continued at this location since 2007.
The lease for the current space expired on June 30, 2024. The City staff has been negotiating with the property owner, Peyday Realty LLC, and both parties have agreed to a new five-year lease, effective from July 1, 2024. The lease outlines the following payment terms:
Year 1: $3,300.00 per month through June 2025
Year 2: $3,400.00 per month through June 2026
Year 3: $3,500.00 per month through June 2027
Year 4: $3,600.00 per month through June 2028
Year 5: $3,700.00 per month through June 2029
The City shall pay $11,000.00 to Lessor for the entire term here of as Lessee's share of common area expenses, payable in advance in equal monthly installments of $916.67 on the first day of each and every calendar month during the term of this Lease
The lease is payable in monthly installments through June 30, 2029. The Lease shall terminate on June 30th of any year in which the city does not appropriate the funds for the lease the next fiscal year.
Sufficient funds have been budgeted in the General Government Account of the General Fund to pay for the expenditures.
Cost: $50,600
Funding Source: Fund 110 General Fund
Requested By: Ryan Baze, Maintenance Services Director
Approved By: City Manager’s Office
Attachments: Main Street Plaza Shopping Center Lease Agreement
Recommendation:
recommend
Approval of and authorization to execute a lease agreement with Peyday Realty, LLC, for space at the Main Street Plaza Shopping Center, 1635 South Main Street, to house the Service Oklahoma Driver License Exam Site
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