City of San Antonio - File #: 18-2285

• File #: 18-2285
• Type: Real Property Lease
• In control: City Council A Session
• On agenda: 3/29/2018
• Posting Language: Ordinance approving an Amendment to the lease agreement with Brass Centerview 2016, LLC for the office space located at 4414 Centerview Drive, Suite 160, which reduces the monthly rental amount to $1,400.00 for use as the City Council District 7 Constituent Office. [Lori Houston, Assistant City Manager; John Jacks, Director, Center City Development & Operations]

Date	Ver.	Action By	Action	Result
3/29/2018	1	City Council A Session	adopted	Pass

DEPARTMENT: Center City Development & Operations                    

DEPARTMENT HEAD: John Jacks

COUNCIL DISTRICTS IMPACTED: 7

SUBJECT:

Lease Agreement - City Council District 7 Constituent Office

SUMMARY:

An ordinance authorizing the 3rd Amendment to Lease Agreement between the City of San Antonio and Brass Centerview 2016, LLC, for a five-year term, for the continued use of office space located at 4414 Centerview Drive, Suite 160 for use as the City Council District 7 Constituent Office.  The monthly rent will be reduced from $1,925.00 to $1,400.00 for the remainder of the lease term ending November 30, 2021. The City’s termination rights and all other terms and conditions of the Lease Agreement remain the same.

BACKGROUND INFORMATION:

Pursuant to Ordinance 2011-11-17-0950, dated November 17, 2011, the City of San Antonio entered into a five-year Lease Agreement for office space located at 4414 Centerview Drive, Suite 160, to be utilized as the City Council District 7 Constituent Office.  The lease has since been renewed for a term ending November 30, 2021.  In an effort to reduce the monthly rent expenditure the City Council District 7 Staff negotiated a reduction in the monthly rental amount while retaining the current size of the office. 

ISSUE:

There is currently no available City-owned space in which to relocate the District 7 City Council Constituent Office.

This action is consistent with the City's policy to provide a constituent office within each City Council District for each Councilperson to conduct business and meet with constituents. 

ALTERNATIVES:

 The alternative to exercising this 3^rd Amendment to Lease Agreement would be to search for a new lease space in the same geographic area which offers more favorable lease terms than the very favorable terms already secured.  Additionally, the cost to relocate this office would likely negate any potential rent savings.

FISCAL IMPACT:

Funding is available in the FY 2018 Mayor and Council General Fund Budget. Effective April 1, 2018, the monthly rent will be reduced from $1,925.00 to $1,400.00, resulting in savings of $23,100.00 over the remaining lease term. 

Lease Period	Annual FY Rent
4-1-2018 thru 9-30-2018	$8,400.00
10-1-2018 thru 9-30-2019	$16,800.00
10-1-2019 thru 9-30-2020	$16,800.00
10-1-2020 thru 9-30-2021	$16,800.00
10-1-2021 thru 11-30-2021	$2,800.00
Total Rent Paid	$61,600.00

RECOMMENDATION:

Staff recommends approval of this 3^rd Amendment to Lease Agreement with Brass Centerview 2016, LLC, for the continued use of the office space located at 4414 Centerview Drive.