The Jenks Economic Development Authority on Dec. 2 authorized staff to sign a purchase-and-sale agreement and begin a 90-day inspection and due-diligence period for two Village on Main parcels that the city is considering buying.

City Manager Shrout told the authority the contract covers two parcels: one near-acre site with a five-story parking structure of about 182,000 square feet and 525 parking spaces, and a second 1.89-acre parcel with two buildings totaling roughly 26,000 square feet and 112 parking spaces. Shrout said existing annual rent is about $452,000 and common-area maintenance receipts are about $97,000, for roughly $549,000 in revenue under current leases.

Shrout said the full purchase price presented to the authority is $16,000,000, with earnest money of $100,000 due three days after the contract’s effective date and an extended 90-day due-diligence period. "The proposed contract contains an extended due diligence period of 90 days," Shrout said, adding the purchaser (JEDA) may terminate the agreement for any or no reason during the inspection period and recover the earnest money.

Staff outlined preliminary plans for how the property might be used if purchased: build out the existing 10,000-square-foot shell for city office use (estimated $2 million to $2.5 million) to free space in City Hall; relocate the police department into the vacated City Hall space and then renovate the police building into a federally funded senior center (estimated renovation roughly $1,000,000). Shrout said banks approached have indicated willingness to finance the acquisition, and staff showed an example financing scenario at a 1.2% interest rate, which would produce approximately $192,000 in annual interest expense on a $16 million loan.

Shrout emphasized several contract protections: the seller must deliver leases, inspection reports, utility statements and other operating documents within 10 business days of the effective date; the purchase agreement contains contingencies including satisfactory financing, title resolution and estoppel certificates from tenants; and outside counsel (McAfee & Taft) will perform legal due diligence.

Councilmembers and authority members framed their vote as permission to proceed with due diligence rather than final approval of purchase. Councilmember Brown clarified that the resolution "is strictly supporting the contract in order to complete the due diligence" and not necessarily support for final execution; Shrout concurred. The authority then voted unanimously in favor.

The authority’s approval allows staff to obtain the requested documents and perform financial, physical and legal inspections during the 90-day period. If outstanding issues arise, the purchaser may terminate the agreement under the contract terms; if due diligence is satisfactory the authority may proceed to close under the contract’s remaining conditions.

The resolution passed by roll call; votes recorded in the meeting were Brown, Short, Abel, Murray and Chair Box voting "Yes."