The former Danny's Restaurant will be remodeled to provide more space for the Sequim Police Department.

The council unanimously agreed Monday, Aug. 10, to spend up to $300,000 from the city's capital projects fund for the project.

"Thank you. I know it's been a long process, but the police department staff will really appreciate this," said Police Chief Robert Spinks.

Capital Projects Manager Frank Needham said since the project was delayed, suppliers and contractors have dropped their prices because of the economy. So the project now could cost $225,000 instead of the originally estimated $274,000, he said.

The remodel will include a more secure front lobby area, two secure interview rooms, a larger secure prisoner handling area, active records storage and volunteer office space.

Last November, the council unanimously approved a five-year extension of the police department's lease in the Sequim Village Center shopping center, 609 W. Washington St., that includes the former Danny's Restaurant.

The new lease includes the existing 1,000-square-foot detectives' annex for $11,885 annually, the existing 5,280-square-foot police station plus the 5,280-square-foot former Danny's Restaurant and Village Event Center for $81,156 annually.

The total rent for police department space in 2009 will be $93,041.

The city expects to receive $12,000 annually in sublease payments from the Clallam County Sheriff's Office for using Sequim Police Department space.

Reach Brian Gawley at bgawley@sequimgazette.com.