Defense contractor Textron Marine & Land Systems on Wednesday said it will continue leasing a building owned by the City of Slidell for its headquarters rather than relocate. The company's decision to stay -- and continue to pay to rent to the city -- will likely bring a bit of relief to Slidell city leaders. The city already faces...
Defense contractor Textron Marine & Land Systems on Wednesday said it will continue leasing a building owned by the City of Slidell for its headquarters rather than relocate. The company's decision to stay -- and continue to pay to rent to the city -- will likely bring a bit of relief to Slidell city leaders. The city already faces a $1 million budget shortfall next year, and Textron's departure could have doubled that hole.
In a news release Wednesday, the company and the city did not disclose the financial terms of the lease renewal agreement. Mayor Freddy Drennan couldn't immediately be reached for comment.
Textron Marine & Land located its headquarters in the former Defense Information Systems Agency building at Gause and Robert boulevards in 2007 on a three-year lease. The contract was renewed for another three years in 2010, but the company notified the city earlier this year that it was considering a move when the current lease ends in May. Textron occupies the vast majority of the 100,000-square-foot building, a landmark in the city.
Under the new agreement, the lease will be extended for one year, from June 1, 2013 through May 31, 2014, with options to renew for the following two years.
The former Defense Information Systems Agency building in Slidell in 2005. Textron Marine & Land Systems began leasing the building in 2007.
A Textron spokesman referred questions about the financial details to Slidell's chief administrative officer, Tim Mathison. Mathison was out of the office Wednesday and could not be reached for comment.
"I want to thank Slidell Mayor Freddy Drennan and city officials for working diligently with us through these lease negotiations," said Textron Marine & Land Systems Senior Vice President and General Manager Tom Walmsley in the news release. "The mayor and others listened carefully to what we had to say about our company's complex business requirements and put together a lease that supports the needs both of our company and the city."
The company currently pays about $2 million to Slidell each year. After the costs of maintaining the building, the city pocketed about $1 million to use in other areas of the budget. But with a lag in sales tax revenues, the city faces a $1 million shortfall in the budget for the next fiscal year, which begins July 1. The loss of rent from Textron threatened to worsen the situation.
"Both parties worked in good faith to come to an agreement that is fair and reasonable, and we appreciate that the process concluded with today's announcement," Drennan said in the news release. "Textron Marine & Land Systems is a good corporate citizen and we're pleased the company and its employees will remain as part of the Slidell community."
The Slidell City Council must vote to approve the contract before it is final.