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File #: 16-3267   
Type: Real Property Lease
In control: City Council A Session
On agenda: 6/9/2016
Posting Language: 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]
Indexes: La Villita, Leases
Attachments: 1. HB1295 Form - Little Church, 2. 2016 Little Church Contracts Disclousre Form, 3. 2016 Little Church Lease countesigned, 4. Draft Ordinance, 5. Ordinance 2016-06-09-0441
Related files: 21-3686

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.