DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: Council District 7
SUBJECT:
2nd Renewal and Extension of Lease Agreement for SAMHD WIC Clinic
SUMMARY:
This ordinance authorizes the execution of a 2nd Renewal and Extension of Lease Agreement with Callaghan Square Investments, Ltd., for the continued use by the San Antonio Metropolitan Health District's (SAMHD) Women, Infants and Children (WIC) Nutrition Project of approximately 5,000 square feet of clinic and office space.
BACKGROUND INFORMATION:
The Texas Department of State Health Services provides annual financial assistance to the City to support the WIC Nutrition Project of the SAMHD. Under this program, SAMHD provides nutritional support for pregnant women and their families at various WIC clinics throughout the City. This WIC clinic, located at 4412 Callaghan Road in District 7, has proven to be one of the SAMHD's most successful sites serving an estimated 5,000 participants per month primarily from northwest San Antonio. SAMHD has leased space at this location for the past twenty years. This action will serve to renew the lease for a period of five years, effective April 1, 2017 through March 31, 2022. The lease has an option to renew for an additional five year term and the right to terminate with 30 days' prior written notice. The monthly rental amount for the entire five year term will be $6,823.74.
ISSUE:
The existing lease expired on March 31, 2017 and contained a provision to renew for five additional years; this ordinance will exercise that five year renewal.
ALTERNATIVES:
If the City chooses not to renew this lease, staff would need to be relocated and the lease terminated. The City has made a substantial investment into the current property for telephone and network systems, and moving would incur additional expenses.
FISCAL IMPACT:
The changes to the existing lease are outlined in the chart below.
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