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San Juan County approves 3-year lease with PESCO for industrial park; contingent on State Board of Finance approval
Summary
The San Juan County Commission approved a resolution authorizing a three-year lease of the county industrial complex to Process Equipment and Service Company (PESCO), with an appraised monthly rate of $13,750 and an option for two three‑year renewals; final execution is contingent on approval by the State Board of Finance.
San Juan County commissioners voted to approve a resolution authorizing an initial three‑year lease of the San Juan County Industrial Park complex to Process Equipment and Service Company (PESCO), contingent on approval by the State Board of Finance.
The lease, described by county staff as an appraised-rate agreement, sets the monthly lease rate at $13,750. County staff corrected an earlier staff summary that had listed a lower figure and said the three‑year total at the corrected rate is $495,000. The lease includes options for PESCO to renew for two additional three‑year terms, for a maximum potential term of nine years, with rent to be renegotiated if appraised value changes.
“This lease rate is an appraised value of $13,750 per month,” County staff member Mr. Sawyer told commissioners while presenting the evaluation committee’s recommendation. Sawyer said the committee received two applications and recommends executing the lease with PESCO. He also said staff confirmed with Linda Rogers of PESCO that PESCO accepts the corrected terms.
Why it matters: county staff said PESCO proposes to create 84 new jobs with an expected payroll of $5,100,000 (not including benefits). Commissioners and staff noted the transaction requires State Board of Finance approval under state law; staff said the next step, if the resolution is approved locally, is to present the lease to the State Board of Finance at its July 15 meeting.
Supporters and process details: Mr. Sawyer said the county issued Request for Applications (RFA) No. 242516 in February and that the county’s evaluation committee reviewed the two proposals. He said staff revised the lease documents and resolution to correct the monthly rent shown in the staff summary. PESCO representatives were not present at the meeting but had been informed of the recommendation, Sawyer said.
Action taken: A motion to approve Resolution 24‑25‑84, approving the lease with PESCO, was made, seconded and passed by the commission. Commissioners did not provide a roll-call vote in the meeting transcript; the chair announced the motion carried.
Next steps and conditions: Staff identified the County’s submission of the lease to the State Board of Finance on July 15 as the next procedural step. The lease’s renewal provisions call for renegotiation of rent if the appraised value changes. The county did not provide a copy of the final lease in the meeting record; staff said the resolution and lease documents were updated to reflect the corrected rent figure.
