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Utah County approves MOU with Wasatch Mental Health, clarifies $90,000 terms and rent provisions
Summary
The county commission approved a memorandum of understanding with Wasatch Mental Health that clarifies how a $90,000 deposit will be handled (either reimbursed if the health department finances tenant improvements or applied to construction costs) and confirms rent and restoration provisions; the MOU goes to Wasatch Mental Health for its March approval.
The Utah County Commission voted to approve a memorandum of understanding with Wasatch Mental Health that lays out how tenant improvements, rent and a $90,000 deposit will be handled for a planned county facility. The commission adopted the agreement with two stipulated changes addressing reimbursement language and restoration provisions.
County staff explained that the MOU contemplates two scenarios for the $90,000: if the health department (the prospective tenant) finances and pays for its own tenant improvements, it would be eligible to have the $90,000 reimbursed; alternatively, if Wasatch Mental Health finances the improvements and recoups costs over time, the $90,000 may be applied to the construction costs. "If they do come, the $90,000 will either be applied or reimbursed," a county staff speaker said during the discussion.
Commissioners also reviewed how rent will be calculated. Staff described a multi-component rent formula: a base rent tied to local comparable per-square-foot shell costs minus a 15% adjustment (intended to remove profit), plus operations and maintenance charges and a roughly 3% reserve. In some cases tenant improvements paid by Wasatch Mental Health could be amortized into rent over an agreed period; staff said a 10‑year amortization period had been discussed for certain programs.
The commission asked for and secured one additional explicit change: language clarifying that the tenant (the health department) would be eligible for reimbursement of amounts paid toward improvement costs if it elects to finance and pay them itself. Commissioners also clarified that Wasatch Mental Health could waive any restoration requirement for sheriff-occupied space if, at the time of lease termination, the mental-health provider opts to keep improvements in place.
The motion to approve the agreement with the stipulated changes was adopted 3–0. Staff said the MOU will appear on Wasatch Mental Health’s March agenda for that agency’s consideration.
The county recorded no additional fiscal numbers beyond the $90,000 deposit and general descriptions of rent components; specific rent per square foot and the final amortization schedule will be determined as parties finalize lease documents.
