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Middletown council hears lease amendment for Tate’s and $3 million plan for downtown ADT parcel
Summary
Counsel told the council the amended Tate’s lease pushes deadlines two years and waives rent in year one; the council also heard details of a proposed ATD downtown development that would cost the city $3 million to acquire an ADT parcel and include a $1 sale and leaseback to allow tenant relocation.
Presiding officer opened a discussion on two downtown items and Brig Smith, the city’s Office of General Counsel, summarized both for the council. Smith said the amended and restated Tate’s lease delays construction deadlines by two years and reduces the first year’s rent from $5,000 to $0 to recognize start‑up costs and the precarious economics of the restaurant business.
The change to Tate’s rent and deadlines is intended to reflect roughly two years of construction delay. “So the, Tate’s is an amended and restated lease. All it does basically is kick back the deadlines by 2 years because the construction delay was approximately 2 years,” Smith said. He asked the council to ratify the amended lease when the item returns for formal action.
Smith also described a larger downtown effort for the ADT/ATD site that would create a public plaza, a pedestrian bridge to the riverfront and additional public parking to address chronic downtown parking needs. The project team plans outreach, design and geotechnical work; Smith said the city would pursue an acquisition structure that includes a $1 sale and leaseback allowing the current occupant up to 18 months to relocate while the city advances design and engineering work.
Councilwoman Lefredo asked for the city’s cost for the ADT parcel; Smith said the city cost is $3,000,000. “It’s $3,000,000,” Lefredo stated after the figure was confirmed. Smith explained the topography makes above‑grade parking more feasible and less expensive than deep excavation for underground parking, and that the selected development team (led by JR Hargraves with Spectra/Carhar) emerged from an RFQ process and grew into a broader landmark proposal.
The update was presented as informational; the council did not take a final vote on the ADT acquisition or on Tate’s lease during the session. Next steps Smith described include public outreach, stakeholder meetings and more detailed design and engineering work before the council is asked to approve purchase or ratify lease changes formally.
