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Owasso staff proposes phased rent to formalize Chamber lease after two-decade lapse
Summary
City staff proposed a one-year lease for the Owasso Chamber of Commerce building at 315 S. Cedar, starting at $900/month and stepping up over several years toward an inflation-adjusted level; council asked staff to add options to renew and to return draft lease language for review.
City staff told the Owasso City Council that the Chamber of Commerce has occupied 315 South Cedar without a valid lease for more than two decades and that the city needs a formal landlord-tenant agreement.
Staff said an appraisal indicated market rent close to $2,200 per month for the roughly 1,734-square-foot building, while applying simple inflation to the Chamber's historic rate produced a mid-range figure in the $1,200/month area. "We appraised it and that came back a little better than $2,200 a month," staff told council. The transcript records staff saying the Chamber has been paying "$6.58 33 since 01/01/2001," and staff proposed a path to move from the longstanding rate to something closer to current market levels.
To avoid a sudden hardship for the Chamber, staff proposed starting a one-year lease at $900/month and incrementally increasing the rent (small increases of $50-$100 per year) intended to reach the inflation-adjusted level over several years. Councilors asked about utilities, maintenance responsibilities and whether the Chamber had been included in developing the numbers; staff said leadership had been informed and that the city had discussed the numbers with Chamber representatives.
Legal counsel said the city and councilors carry personal liability risks if a municipal rent is "too wildly out of line with market value," and urged the council to document duty/responsibility language carefully. Council members debated lower starting numbers (one suggested $700 for the first year) versus $900; several supported documenting an option to renew in the lease so the parties and the public see the intended trajectory.
Outcome: Staff will draft lease language reflecting the council's guidance (a $900 starting rate, options to renew and clearer extension language) and return it for council consideration. The council emphasized that formalizing a lease was the priority and that the schedule of increases could be revisited at ratification.
Next step: Staff will return with a draft lease that includes renewal options and the stepped rent schedule for council discussion and vote.
