By Krystal Smalley
ksmalley@wbcowqel.com
The approval of a lease bid for the South Street Commerce Center will see a Crestline business taking up some real estate in Galion.
The Galion Board of Control met Friday afternoon to approve a bid submitted by Mosier Industrial Services Corp. The Crestline-based company submitted a bid for $10,500 per month for two years, the minimum required by the lease. The company would have the option for a buy-out provision at the end of the lease, which would occur in mid-2019.
Mayor Tom O’Leary noted that the previous agreement was set up as a gross rent lease, which saw the city paying for the taxes, insurance, and utilities. The new agreement, however, is a triple net lease, which requires the tenant to pay for the ongoing property expenses in addition to rent and utilities. Though the triple net lease option means a slightly smaller revenue per month, O’Leary added that the city would not have to worry about paying the utilities or the daily maintenance of the building.
O’Leary indicated that Mosier Industrial would also be within their rights to sublet the building.
Mosier Industrial will use the nearly 300,000-square-foot building as a storage and manufacturing space. The company specializes in steel fabrication, plate rolling, machining, millwright services, rigging and crane services, salvaged equipment sales, plant decommissioning, and more.
“We’re really on the side of the rebuilding of America,” said O’Leary. “Companies like this – we’re optimistic and hopeful that if it does happen nationally, these people will be very busy. I really think they have a great competitive advantage.”
The city received the former HTI building as a donation. Upon acceptance of the donation, the city agreed to not sell the property for three years.
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