Butler Transit Authority approved a five-year lease for a new bus terminal on West New Castle Street in Butler that is scheduled to open Oct. 1.

Authority board members unanimously voted to lease a building for the terminal at 128 W. New Castle St. for $1,200 a month for the first year and 3 percent increases in each subsequent year with an option for another five years with 3 percent increases in each year.

The landlord is board member Joe Gray, who abstained from the vote.

The authority will reimburse Gray for the $73,677 in improvements he is making to the building and has applied to the state for money to cover the cost, said John Paul, authority executive director.

“We’re looking to move in on Oct. 1,” Paul said.

The board also awarded a $25,544 contract to Holbein Inc. of Sarver to move the sidewalk at the intersection of West New Castle and Main streets, so buses can access the terminal by making a left turn from Main Street. New traffic lane striping is included in the contract.

Last month the authority purchased seven high-definition security cameras and a recorder with mobile access for $6,187 for the new terminal.

Officials said the new terminal will have better access for people with disabilities and more room for buses.

The authority has been renting the existing terminal on East Cunningham Street for at least 25 years.