Type:
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Real Property Lease
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Posting Language:
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An Ordinance authorizing a lease agreement with the Orthodox Ecumencial Church, Inc. d/b/a Little Church of La Villita, effective July 1, 2016 through June 30, 2021. [Lori Houston, Assistant City Manager; John Jacks, Interim Director, Center City Development & Operations]
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Indexes:
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La Villita, Leases
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DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
La Villita Lease Agreement
SUMMARY:
This ordinance authorizes a La Villita lease agreement with the Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita, effective July 1, 2016 through June 30, 2021.
BACKGROUND INFORMATION:
The Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita (Little Church) has been a tenant within La Villita for over 50 years. The Little Church occupies buildings 12 and 13 and operates a sanctuary, food pantry, and artist gallery. The Little Church has been a month-to-month tenant since its last agreement expired July 31, 2015. The proposed agreement would allow the Little Church to remain in buildings 12 and 13 for an additional five-years effective July 1, 2016, and provides two, two-year renewal options. The Little Church will pay a monthly base rent rate of $1.15 per square foot for the artist gallery space totaling 642 square feet and $0.32 per square foot for the sanctuary, food pantry, and church administrative space totaling 3,611 square feet. CAM and utilities fees will also be assessed.
ISSUE:
Approval of this ordinance is consistent with the City’s practice of leasing City-owned property in support of downtown retail activity.
ALTERNATIVES:
The City may elect not to approve this lease agreement, which would result in the Little Church’s occupancy becoming at will or terminating.
FISCAL IMPACT:
The total amount to be paid the Little Church for the lease term effective July 1, 2016 is summarized below. The base rental rate will increase 2.00% annually and CAM and utilities fees will increase 2.5% annually.
Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita |
Lease Year |
Monthly Base Rent |
Monthly Utilities & CAM |
Monthly Total |
Yearly Total |
July 1, 2016 - June 30, 2017 |
$1,893.82 |
$1,109.89 |
$3,003.71 |
$35,034.48 |
July 1, 2017 - June 30, 2018 |
$1,942.77 |
$1,137.74 |
$3,080.51 |
$35,929.98 |
July 1, 2018 - June 30, 2019 |
$1,991.72 |
$1,165.59 |
$3,157.31 |
$36,825.47 |
July 1, 2019 - June 30, 2020 |
$2,040.67 |
$1,193.44 |
$3,234.11 |
$37,720.96 |
July 1, 2020 - June 30, 2021 |
$2,089.62 |
$1,221.29 |
$3,310.91 |
$38,616.46 |
Total |
$184,127.35 |
All funds received will be deposited into the General Fund.
RECOMMENDATION:
Staff recommends approval of the La Villita lease agreement the Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita, effective July 1, 2016 through June 30, 2021.
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