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Council approves amended Mill 7 lease; sets $6.5 million base purchase price and raises monthly rent
Summary
Lewiston’s City Council on Oct. 21 approved an amendment to the Mill 7 lease that raises monthly rent to cover construction cost overruns and sets a base purchase price of $6.5 million with a 2.5% annual escalation clause.
The Lewiston City Council approved an amended lease for Mill 7 that increases monthly rent to reflect construction overruns and establishes a base purchase price of $6,500,000 should the city exercise the option to purchase in the future.
Deputy Administrator O’Malley told the council that the original build‑out budget increased during construction and the developer presented invoices exceeding the earlier estimate. The amended lease raises the monthly payment by roughly $7,950 and sets a fixed base purchase price of $6.5 million, subject to a 2.5% annual escalation if the city defers purchase. Staff negotiated a schedule that permitted the city to defer higher payments until the next fiscal year to accommodate current budget constraints. Council approved the resolve 7–0.
Why it matters: Staff framed the amendment as a cost‑avoidance move — city officials said retrofitting the old police headquarters would have been significantly more expensive than occupying the renovated Mill 7 space. The fixed purchase price and payment schedule give the city predictability and preserve the option to buy the property after the lease term.
Speakers: Deputy Administrator O’Malley. The motion passed 7–0.
