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Jenks economic authority approves contract to pursue purchase of Village on Main property
Summary
The Jenks Economic Development Authority approved a resolution to execute a purchase-and-sale agreement and begin 90 days of due diligence on the Village on Main complex — a proposal that would acquire a five-story parking garage, adjacent commercial buildings and a 10,000-square-foot shell building for potential city offices, police relocation and a senior center.
The Jenks Economic Development Authority on Dec. 2 voted to authorize execution of a purchase-and-sale agreement that would let the authority perform 90 days of due diligence on the Village on Main property, a two-parcel commercial complex that includes a five-story parking structure and two retail buildings.
City Manager Mister Shrout told the authority the agreement covers a close-to-acre parcel with a five-story garage of about 182,000 square feet and roughly 525 parking spaces, plus a 1.89-acre parcel containing two buildings totaling about 26,000 square feet and 112 parking spaces. The proposed purchase price is $16,000,000, with $100,000 in earnest money due three days after the contract’s effective date.
“This contract before you is for two parcels,” Shrout said in presenting the terms. He outlined key protections for the authority: a 90-day inspection/due-diligence period during which JEDA may terminate “for any or no reason” and receive its earnest money back, and seller obligations to deliver leases, inspection reports, operating statements and other financial documentation within 10 business days of the effective date.
The staff presentation included estimated renovation costs and possible near-term uses: building out the 10,000-square-foot shell for staff offices (estimated $2 million to $2.5 million), converting the existing police department building into a federally funded senior center (estimated $1 million), and relatively minimal renovations to move police operations into the acquired building. Shrout said banks the city has spoken with would finance the $16 million purchase at about 1.2% interest; staff calculated that 1.2% on $16,000,000 would generate approximately $192,000 in annual interest expense at current assumptions.
Shrink-wrapped contingencies in the contract include seller-delivered estoppel certificates, satisfactory authority financing and resolved title issues before closing. Shrout said the authority has retained outside counsel with experience in large real-estate transactions to conduct legal due diligence.
Chair Box stressed that approval was to proceed with due diligence, not final purchase. “Support of the resolution is strictly supporting the contract in order to complete the due diligence,” a councilmember clarified; Box added that the 90-day period will give the authority “a full peek underneath the sheets” and the option to proceed or walk away.
After discussion, JEDA voted unanimously to adopt Resolution 2025‑15 authorizing the execution of the agreement and the commencement of the inspection period. The resolution requires additional schedules from the seller (leasing costs and capital expenditures) before the contract will be executed and the city will not close unless financing, estoppels and title are satisfactory.
Next steps: staff will obtain the seller schedules and supporting documents, the retained law firm will perform legal due diligence, and staff will return to the authority with findings within the 90-day inspection period. If the authority likes what it sees, it may move to finalize the purchase; if not, it may terminate and recover the earnest money.
