DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Michael J. Sawaya
COUNCIL DISTRICTS IMPACTED: Council District 1
SUBJECT:
Amendment and Restatement of the Henry B. Gonzalez Convention Center (Business Center) Lease Agreement with The UPS Store
SUMMARY:
This Ordinance authorizes an Amendment and Restatement of the Henry B. Gonzalez Convention Center (Business Center) Lease Agreement with Texas Badger Developments-1, LLC (d/b/a The UPS Store) to 1) extend the term through December 31, 2017, 2) provide for a five-year renewal option, 3) incorporate terms and conditions related to the finish-out of the future business center space in the current Convention Center expansion, and 4) modify and update other terms and conditions of the agreement, with estimated revenue to the City of $124,947.00 over the initial extension period.
BACKGROUND INFORMATION:
Ordinance Number 94484, dated September 6, 2001, authorized the Henry B. Gonzalez Convention Center (Business Center) Lease Agreement with the original tenant, F. Kellogg Enterprises, Inc. (d/b/a Mail Boxes, Etc.), for the finish out and operation of a business center inside the convention center. The initial lease was of 1,386 sq. ft. was for an initial term of five years with a three-year renewal option. The term effectively commenced January 1, 2002, and expired December 31, 2006, and had a three year renewal option through December 31, 2009. The base monthly rent was $1.55 per square foot, or $2,148.30 per month, or 10% of net monthly sales of minimum services and products, whichever was greater, and 40% of gross margin on non-exclusive services and products.
Subsequent amendments and ordinances, or administrative actions, resulted in the following:
* Added an additional 375 square feet of storage space, for a total of 1,761 square feet, and increased the monthly base rent to $2,729.55;
* Assigned the agreement to Texas Badger Developments-1, LLC, to operate ...
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