Panel approves two Department of Correction leases; members question build‑out costs

The Executive Subcommittee approved two leases presented by the Department of General Services for Department of Correction offices in Clarksville and Weakley County (Dresden).

Deputy Commissioner John Hull said the Clarksville lease would provide roughly 14,000 square feet in a newly constructed building for community supervision, with the landlord responsible for tenant improvements and an interior build‑out cost identified in the transcript as $750,000. Hull described the arrangement as a 10‑year lease with a five‑year renewal option and said the state retains a purchase option.

On the Weakley County (Dresden) item, Hull said TDOC sought to expand office space from about 5,300 to 9,300 square feet, with parking expanded to two separate lots. He said three proposals were initially received for that advertised 10‑year lease with a five‑year renewal, but two proposals were withdrawn after an incumbent tenant decided to remain in the space; the remaining proposal would result in construction of a new building for TDOC. Hull noted the lease again includes a purchase option for the state.

Committee members pressed for explanation of per‑square‑foot cost differences between the two projects — the transcript records one project at roughly $73.53 per square foot and the other at $180 per square foot — and asked whether giving landlords space sizes or preliminary design guidance prior to proposals affects build‑out pricing. Hull said landlords receive space sizes and types (offices, etc.) but do not receive final designs before proposing; he said he could not explain precisely why the per‑square‑foot estimates differed so markedly. Chair (unidentified) cautioned that the state’s allocation of certain risks to landlords can increase landlords’ build‑out estimates and said staff are working to monitor the issue.

Both leases were approved by voice vote.