OGDEN -- The Ogden City Council has approved a lease to develop additional parking spaces for the new Internal Revenue Service building.
At Tuesday night's meeting, the council unanimously approved a lease agreement between the Ogden City Redevelopment Agency, which is composed of the city council, and The Boyer Company, which is overseeing the project. The agreement includes the option for the company to eventually buy the land at the southwest corner of 23rd Street and Lincoln Avenue.
The company would use this land to build 50 new stalls for the new IRS building that is currently under construction next to it.
The new building would require more parking during the peak shift changes, according to an Ogden City Redevelopment Agency document.
The land was appraised and approved at $248,000, as long as it is bought by the end of 2012.
The 20-year lease has an escalating rent.
"That basically means it accelerates far faster than a market-rate lease," said Tom Christopulus, the city's business development manager.
The lease rate this year is $12,500 annually, but it grows every few years until it reaches $50,000 annually by the end of 20 years.
"It's to encourage the purchase of the property, as it's needed to complete the development of Stage 3" of the IRS construction project, he said.
The new IRS building is expected to be open by the end of the year.