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State panel approves Bradley County lease for Department of Correction probation office with one-time payment included in first-year rent
Summary
The State Building Commission’s Executive Subcommittee approved a lease in Bradley County for the Department of Correction’s community supervision office, including a negotiated one-time payment of $213,142 amortized into a first-year rate of $59 per square foot, staff said.
The Executive Subcommittee of the State Building Commission approved a lease in Bradley County for the Department of Correction’s community supervision office, including a negotiated one-time payment that staff said covers increased renovation costs.
John Holt, deputy commissioner for the Department of General Services, told the subcommittee the agency conducted market research and negotiated a one-time payment of $213,142 to recognize higher construction and financing costs. “We have done additional market research ... and we believe a one time payment of $213,142 we have negotiated with the landlord is a fair settlement to recognize the increased costs,” Holt said.
Holt and members clarified that the $213,142 is not paid separately in advance but is amortized into the first year’s rent; the first-year rate was calculated at $59 per square foot and includes that one-time payment. “When you calculate it out for that first year, it’s $59 a square foot. But there is a one time payment when we commence the lease ... so it’s just calculated as part of the first year rent,” Holt said.
The lease item was moved and seconded and approved unanimously. Committee members asked questions about how the payment and rate are applied; no public comment was recorded.
