DEPARTMENT: EastPoint & Real Estate Services
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 2
SUBJECT: Lease Agreement: 2803 East Commerce Street to San Antonio Fighting Back, Inc. Renewal
SUMMARY:
An ordinance authorizes execution of a lease renewal for a 19,050 square foot City-owned building known as the Barbara Jordan Community Center to continue to be used by San Antonio Fighting Back. The terms of the lease renewal extend the existing lease for an additional four-year term, expiring September 30, 2018, and amend the terms to require SAFB to augment their existing maintenance obligations.
BACKGROUND INFORMATION:
San Antonio Fighting Back (SAFB) serves the residents of San Antonio, Bexar County and surrounding communities and acts as the bridge between the local community, state and federal agencies, and law enforcement entities to create longstanding systemic changes. SAFB conducts its work within a specific target zone comprising a 25-sqaure mile area on the East and Southeast sectors of the city. Since its inception, SAFB has worked to provide the community with tools and resources to overcome the negative effects of crime, violence and substance abuse. This building has been used by SAFB since 2002 to conduct programs in support of their mission and house staff that monitor and manage these programs to the benefit of the surrounding eastside community.
Pursuant to the terms of the lease, SAFB is to use the building for programs that will promote the health, safety and welfare of the community through crime prevention, drug prevention and family strengthening activities and maintain sufficient staff to keep the building open for these programs, at a minimum, Monday through Friday from 8:00 AM to 5:00 PM. Providing office space in support of these programs at a nominal lease rate allows the City to leverage the value of the real estate to subsidize the operational cost of SAFB so that they can focus their operational funds directly on programs that the City has determined are beneficial to the community.
In January 2014, the City replaced the air conditioning system at the Barbara Jordan Community Center. On August 21, 2014, City Council approved a construction project managed by the City's Transportation & Capital Improvements Department addressing additional deferred maintenance issues such as roof and skylight replacement, replacement and updating of signage and drainage improvements. The work is anticipated to begin in September of 2014 and be completed by December 2014.
As a condition of this lease renewal, SAFB is obligated to ensure proper maintenance of the building to include the HVAC systems, interior finishes, electrical and plumbing systems. SAFB is required to utilize all revenue from subleases and rental of event space for maintenance activities. Failure to do so may result in termination of the lease agreement.
ISSUE:
This ordinance authorizes execution of a lease renewal for a 19,050 square foot City-owned building commonly known as the Barbara Jordan Community Center to continue to be used by SAFB. The terms of the lease renewal extend the existing lease for an additional four years through September 30, 2018 and amend the terms to require SAFB to augment their existing maintenance obligations by providing annual maintenance forecasts along with confirmation of the completion of various maintenance tasks, and utilizing sublease and event revenue for maintenance activities.
The current lease will expire on September 30, 2014. The City has the choice of terminating the lease or renewing at terms that are favorable to both parties.
ALTERNATIVES:
The alternative to entering into this lease agreement with SAFB would be to seek other community based non-profits or for profit entities to lease the building or for the City to develop the space for some City sponsored activity that would benefit the local area. Extending the lease and requiring that SAFB actively participate in the maintenance of the building ensures the continuation of the services SAFB provides at the center.
FISCAL IMPACT:
Terms of the proposed lease will allow SAFB to continue to occupy the property for a term that will expire on September 30, 2018. Additional provisions are indicated below:
|
Current Lease |
Proposed Lease Renewal |
Change Summary |
Area (Square Feet) |
19,050 |
19,050 |
No change |
Annual Rent |
$1.00 |
$1.00 |
No change |
Term |
Will expire 9/30/2014 |
Will expire 9/30/2018 |
4 year extension |
Building Maintenance |
SAFB maintains HVAC system, monthly lawn maintenance and all interior building components including plumbing and electrical systems. City's responsibility is limited to only the roof and building structure. |
No change, however, the lease will require SAFB to develop budget forecasts indentifying what maintenance will be completed over the course of a year and how it will be funded. |
SAFB will identify on an annual basis what maintenance activities they will pursue and will provide quarterly updates as to what maintenance was accomplished along with an accounting of how funds raised through use of the building will be dedicated to maintenance expenses. |
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing the execution of a lease renewal agreement with San Antonio Fighting Back, Inc. for a term that will expire on September 30, 2018 in support of the community based programs provided by this organization.