DEPARTMENT: Office of Eastpoint and Real Estate Services
DEPARTMENT HEAD: Mike Etienne
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Lease Agreement: Human Services Department - Avance - San Antonio
SUMMARY:
An Ordinance authorizing the execution of the Second Renewal and Amendment of Lease Agreement between the City of San Antonio as Landlord and Avance - San Antonio (Avance) as Tenant, for the continued use of approximately 6,206 square feet of space located at 1226 N.W. 18th St., the Frank Garrett Multi-Service Center, for a five-year term commencing March 1, 2015 and expiring February 29, 2020, for the annual rental rate of $1.00 plus the reimbursement of Tenant's pro-rata share of utility expenses.
BACKGROUND INFORMATION:
Pursuant to a lease agreement authorized by Ordinance 100817 dated May 5, 2005, Avance has occupied space at the Frank Garrett Multi-Service Center since June 2005. Avance currently utilizes the Frank Garrett Multi-Service Center for its Early Head Start Program which provides services to families with children birth to three years of age who meet Federal Income Poverty Guidelines and primarily reside in the west side community of San Antonio. Infants and toddlers of working or enrolled parents receive full-time quality Early Childhood Education and care, health, nutrition and prenatal care through a case management system. Approximately 32 children receive service at this facility. As such, this action will serve to support the mission of Avance by providing space in which to administer its Early Head Start Program.
ISSUE:
An Ordinance authorizing the execution of the Second Renewal and Amendment of Lease Agreement between the City of San Antonio as Landlord and Avance - San Antonio as Tenant, for the continued use of approximately 6,206 square feet of space located at 1226 N.W. 18th St., the Frank Garrett Multi-Service Center, for a five-year term commencing March 1, 2015 and expiring February 29, 2020, for the annual rental rate of $1.00 plus the reimbursement of Tenant's pro-rata share of utility expenses. Avance currently utilizes the Frank Garrett Multi-Service Center for its Early Head Start Program which provides year-round services to families with children birth to three years of age who meet Federal Income Poverty Guidelines and primarily reside in the west side community of San Antonio. Approximately 32 children are enrolled to receive service at this facility.
ALTERNATIVES:
An alternative to entering into this Second Renewal and Amendment of Lease Agreement would be for Avance to start a search for another location with equally favorable lease terms in which to provide it's Early Head Start Program. However, it is very unlikely that lease terms as economically favorable will be achievable. Additionally, relocating would cause the program to be suspended for an undetermined amount of time. By entering into this agreement with the City of San Antonio, Avance will not risk jeopardizing their ability to accomplish their mission goals and program objectives.
FISCAL IMPACT:
Avance will pay $1.00 annually for rent during the entire five-year lease term. Additionally, starting with the second year of occupancy, Avance will reimburse the City of San Antonio for their pro-rata share of utility expenses estimated to be $18,400.00 annually. Funds will be deposited in the General Fund in accordance with the FY 2015 adopted budget.
RECOMMENDATION:
Staff recommends approval of this Second Renewal and Amendment of Lease Agreement between the City of San Antonio and Avance - San Antonio, for the continued use of space at the Frank Garrett Multi-Service Center, for a five-year term.