DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
River Walk Lease Agreement
SUMMARY:
This ordinance authorizes a new five-year lease with Rio Rio Corporation, d/b/a Rio Rio Cantina for the use of 171.46 square feet of River Walk patio space for food and beverage service. The lease rate, for year one, is $2.96 per square foot per month for a total of $6,090. This rate will increase 2.5% annually. Revenue generated from this lease agreement will be deposited into the River Walk Capital Improvement Fund.
BACKGROUND INFORMATION:
Ordinance 2009-11-19-0938 authorized a lease with Rio Rio Corporation, d/b/a Rio Rio Cantina for use of 171.46 square feet of River Walk patio space. The agreement expired on February 28, 2014 and was renewed for additional five-year term through Ordinance 2014-02-20-0101. This renewal period will expire on February 28, 2019.
This ordinance will authorize a new five-year lease with Rio Rio effective March 1, 2019 and includes a five-year renewal option. The lease rate, for year one, is $2.96 per square foot per month for a total of $6,090. This rate will increase 2.5% annually.
ISSUE:
Approval of this ordinance is consistent with the City's policy of leasing River Walk patio space to adjacent businesses for outdoor dining alongside the San Antonio River.
ALTERNATIVES:
The City may elect not to lease to Rio Rio, however, the River Walk patio space will then be vacant and underutilized.
FISCAL IMPACT:
This ordinance authorizes a new five-year lease with Rio Rio Corporation, d/b/a Rio Rio Cantina for the use of 171.46 square feet of River Walk patio space for food and beverage service. The lease rate, for year one, is $2.96 per square foot per month for a total of $6,090. This rate will increase 2.5% annually. The total amount to be received by Rio Rio for the proposed lease period is summarized below:
Year
Lease Payment|1010|...
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