Skip to content Skip to left sidebar Skip to right sidebar Skip to footer

Boone Street Market lease extended

The Board of Mayor and Aldermen voted to extend the Jonesborough Locally Grown lease from three years to 20 years at its meeting last week.
Board attorney Jim Wheeler said the lease needs to be extended out to 20 years because it is important to have a mechanism in place to get out of the lease if it becomes necessary.
The recommendation was made due to Rural Development requiring a 20 year lease. The change in the lease will allow Boone Street Market to receive grant support.
The BMA approved a grant agreement with the Tennessee Department of Agriculture for $27,600, which will assist in the development of Boone Street Market. The grant, which will become available on July 1, is intended to increase farm income, as well as promoting the “Pick Tennessee Products” campaign.
The original lease, which was approved by the board in December 2013, was for three years. The new lease will go into effect on July 1, 2014 and be terminated on Jan. 31, 2034.
Jonesborough Locally Grown will pay $1 per year for rent, as long as it meets four objectives. Those include increasing sales opportunities for local farmers; giving farmers an opportunity to add value to their products in a commercial kitchen; offering residents and visitors ready access to fresh, locally-produced food and supporting Jonesborough economic development through addition of a year-round six-day week business in downtown.
Alderman Chuck Vest questioned how long the $1 obligated rent fee would be for because things could change in five or 10 years.
The agreement may be terminated by either party with a 90-day written notice to the other party after the fifth year of the agreement.
An adjustment to the rent may take place, as long as there is a minimum 90 day written notice. The new rent would go into effect the beginning of the calendar year.
Town Administrator Bob Browning said they can make a determination whether they have financial capacity for higher rent by looking at their financial records.
“We need to have a mechanism there,” Vest said.
Mayor Kelly Wolfe said the lease looked well constructed and certainly has accountability. He said there is reasonable protection in the lease that provides caution as well as room for Jonesborough Locally Grown to succeed.
Alderman TerryCountermine said the lease is another example of citizens and the town working together.