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Commission approves lease intent, architectural work to move East Probate to Oliver Creek shopping center
Summary
Montgomery County commissioners approved a letter of intent to lease roughly 31,000 sq ft at Oliver Creek Shopping Center for the new East Probate office and authorized architectural services to renovate the space; the LOI carried 4–1, with Commissioner Sankey opposed.
Montgomery County commissioners on June 3 approved a letter of intent to lease about 31,000 square feet in the Oliver Creek Shopping Center to house the county’s East Probate office, Revenue, and county equipment storage.
Administrator Kindell Anderson presented staff recommendations and supporting documents, and the commission moved to accept a nonbinding LOI that spells out a 10‑year primary term and an initial base rent of $18,083.33 per month (the packet lists Months 1–60 at $7.00 per square foot and Months 61–120 at $8.11 per square foot). The LOI sets a Delivery Deadline of July 1, 2025, and a Rent Commencement Date at 120 days from delivery or when the tenant opens for business, whichever comes first. Additional rent obligations in the LOI include the tenant’s pro rata share of common area maintenance, taxes, and insurance as estimated in the packet.
The commission also approved an architectural services proposal with McKee & Associates to develop renovation estimates and construction documents for the new East Probate space. The AIA short‑form in the packet states the architect’s compensation will be 7% of construction cost; staff said full construction estimates will be developed after design.
The motion to approve the LOI was moved by Vice Chairman Moore‑Zeigler and seconded by Commissioner Castanza; it passed 4–1, with Commissioner Sankey recorded as opposed. Commissioners separated approval of the architectural fee proposal (unanimous) from approval of the LOI (the 4–1 vote), reflecting differing views on committing to lease terms before construction estimates are complete.
Why it matters: County staff told commissioners the move is intended to consolidate three separate leases into a single facility and create more storage for county equipment. The LOI in the packet indicates significant long‑term rent and additional rent obligations that will be finalized in a subsequent lease agreement; the current action only authorized staff to proceed with the LOI and to obtain architectural services. The packet and LOI include a range of practical terms (delivery conditions, landlord delivery warranty, tenant responsibility for interior nonstructural work after 365 days, and pro rata CAM estimates) that will require further negotiation and final lease documents.
Next steps: The LOI is nonbinding until a formal lease is negotiated and executed; staff will return to the commission for contract approval when lease terms and renovated‑space cost estimates are complete.
