Lewiston has agreed to increase its monthly payments as well as make a lump sum payment next year to developer Tom Platz to make up for higher-than-expected costs for its new police headquarters at Bates Mill No. 7.

Starting next fiscal year, on July 1, 2026, monthly payments to Platz will increase by roughly $8,000 to $158,944.

Ever since the completion of the project this spring, Lewiston has been making monthly payments based on an estimated project cost of $15.1 million. However, following some delays and cost overruns, redeveloping the former mill into a public safety facility cost $16.8 million.

Brian O’Malley, deputy city administrator, told the City Council last week that the city has since taken part in negotiations with Platz regarding the future payment structure and the city’s option to purchase the building.

As part of the new agreement, the city will also pay Platz a lump sum of $115,803 next year to make up the difference in its lease payments so far. O’Malley said that while the city was aware of the increased cost of the project, this year’s budget had already been set based on the initial estimated cost.

The new agreement sets a $6.5 million base price for Lewiston to purchase the building at any time during the nine-year lease agreement; however, the purchase price increases 2.5% after each year of the lease. For example, by year seven of the lease, the purchase price would be at $7.5 million.

O’Malley said having the base price set is a benefit to the city because the previous lease was not as concrete, and it will give city officials a more clear picture to make decisions.

Asked about the possibility of purchasing the building within the first few years of the agreement, city spokesperson Angelynne Amores said, “committing to purchase the building within the first few years of the lease is unlikely given fluctuations in property values and recent construction investments.”

In April 2024, the City Council amended the original lease agreement with Platz after the final cost estimate increased to $15.16 million from the original $12.5 million contract.

The department had initially planned a move to the new facility last summer, but the project faced complications stemming from the requirements of turning the office building into a police station. Police didn’t make the move until May of this year.

City officials have remained supportive of the project, which has provided a well-received new headquarters for police at a price that’s still roughly half of what previous studies had estimated for a new standalone facility.

O’Malley pointed to a previous assessment of the former police station on Park Street, which estimated a new station would cost between $36 million and $38 million.

He said getting the new 48,000-square-foot headquarters for the roughly $17 million price tag is “a good deal.”

Councilor Josh Nagine said he was previously “a bit critical of the overruns that occurred,” but said he’s “been enlightened to the savings the city has seen by remodeling this space.”