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File #: 15-1971   
Type: Real Property Lease
In control: City Council A Session
On agenda: 3/12/2015
Posting Language: An Ordinance authorizing the execution of a Sublease Agreement between the City of San Antonio as Sublessee and Family Service Association of San Antonio, Inc. as Lessee for the continued use of approximately 1,615 square feet of office space located at 3014 Rivas St., The Neighborhood Place, for a five-year term.
Attachments: 1. A. Lease Agreement, 2. A. DCD 2-19-15, 3. A. Project Map 2-19-15, 4. B. Lease Agreement, 5. B. DCD 2-19-15, 6. B. Project Map 2-19-15, 7. Draft Ordinance - A, 8. Ordinance 2015-03-12-0193
Related files: 15-1212, 15-1972
DEPARTMENT: Office of Eastpoint and Real Estate Services
 
DEPARTMENT HEAD: Mike Etienne
      
      
COUNCIL DISTRICTS IMPACTED: 2 / 5
 
 
SUBJECT:
 
Lease Agreements:  Human Services Department - Family Services Association of San Antonio, Inc.
 
 
SUMMARY:
 
Consideration of the following Ordinances related to the Department of Human Services and the Family Services Association of San Antonio:
A.      An Ordinance authorizing the execution of a Sublease Agreement between the City of San Antonio as Sublessee and Family Service Association of San Antonio, Inc. (FSA) as Lessee for the continued use of approximately 1,615 square feet of office space located at 3014 Rivas St., The Neighborhood Place, for a five-year term, for the monthly rental rate of $918.75 with the right to terminate after the second year and the right to renew for an additional five year term.
 
B.      An Ordinance authorizing the execution of a Lease Agreement between the City of San Antonio as Landlord and Family Service Association of San Antonio, Inc. (FSA) as Tenant for the continued use of approximately 630 square feet of office space located at 2806 E. Commerce, The Claude Black Community Center, for a five-year term, for the annual rental rate of $1.00, with the right to terminate after the second year.
 
 
 
BACKGROUND INFORMATION:
 
A.      The City of San Antonio has occupied space at the Neighborhood Place, located at 3014 Rivas St., since January 2008.  The Neighborhood Place is currently owned by the Edgewood School District who has leased the facility to Family Service Association of San Antonio, Inc. (FSA).  In cooperation with FSA, the City provides various types of training, counseling and services to the community to include the Training for Job Success Program, tuition support for demand occupation training, various quarterly workshops, emergency rent and utility assistance, fair housing counseling services, mortgage loan modification assistance and foreclosure prevention services, as well as providing intense case management services for individuals living at or below the poverty level.  The program goal is to successfully transition these individuals and families out of poverty by providing educational and support services to attain economic self-sufficiency.  As such, approval of this request will serve to support the mission of the City by providing the space needed in which to offer these critical services to the citizens of San Antonio.
 
B.      The Family Service Association of San Antonio, Inc. (FSA), has been a tenant at the Claude Black Community Center, located at 2806 E. Commerce, since June 2005 providing a home-base and training location for various types of youth services and programs that operate in schools, including youth against gang activities, youth counseling and case management and parent engagement programs.  The City of San Antonio advocates and continues to fully support the capacity of community-based organizations to provide social and human development services to the San Antonio community.  As such, this approval of this request will serve to provide City support of the continued mission of the FSA by providing the space needed to support the programs it offers to the youth and parents of San Antonio.
 
 
ISSUE:
A.      An Ordinance authorizing the execution of a Sublease Agreement between the City of San Antonio as Sublessee and Family Service Association of San Antonio, Inc. (FSA) as Lessee for the continued use of approximately 1,615 square feet of office space located at 3014 Rivas St., the Neighborhood Place, for a five-year term, for the monthly rental rate of $918.75 with the right to terminate after the second year and the right to renew for an additional five year term. The program goal is to successfully transition these individuals and families out of poverty by providing educational and support services to attain economic self-sufficiency.
 
B.      An Ordinance authorizing the execution of a Lease Agreement between the City of San Antonio as Landlord and Family Service Association of San Antonio, Inc. (FSA) as Tenant for the continued use of approximately 630 square feet of office space located at 2806 E. Commerce, The Claude Black Community Center, for a five-year term, for the annual rental rate of $1.00, with the right to terminate after the second year. The Family Service Association of San Antonio, Inc. (FSA), has been a tenant at the Claude Black Community Center, located at 2806 E. Commerce, since June 2005 providing a home-base and training location for various types of youth services and programs that operate in schools, including youth against gang activities, youth counseling and case management and parent engagement programs.
 
The City of San Antonio recognizes the need for the services provided at the Neighborhood Place and the Claude Black Community Center and therefore supports this mission by proposing this Sublease Agreement and Lease Agreement to ensure no interruption of services to the citizens of San Antonio who depend on them.
 
 
 
ALTERNATIVES:
 
A.      An alternative to entering into this Sublease Agreement would be for the City to start a search for another location with equally favorable lease terms in which to conduct training and provide various support services.  However, it is very unlikely that lease terms as economically favorable will be achievable.  Additionally, relocating would cause services to be suspended for an undetermined amount of time.  By entering into this Sublease Agreement with the FSA, the City will not risk jeopardizing it's mission goals and program objectives.
 
B.      An alternative to entering into this Lease Agreement with FSA would be for the City to require the FSA to leave the building and attempt to lease space elsewhere.  However, this course of action would certainly cause an interruption in the services provided by FSA to the youth and parents of San Antonio for an undetermined amount of time, thereby limiting the effectiveness of the mission of the City and the FSA with regard to youth support programs.  Approval of this action will eliminate the potential risk of jeopardizing the mission goals and program objectives of the FSA and the City of San Antonio.
 
 
 
FISCAL IMPACT:
 
A.      The City will pay monthly rent in the amount of $918.75 ($11,025.00 annually) during the five year term of the Sublease Agreement. Sufficient funds exist in the Human Services FY 2015 Operating Budget to cover the FY 2015 expenses related to this lease agreement.
 
B.      The City will collect rent in the amount of $1.00 annually during the five-year lease term.  Funds will be deposited in the General Fund in accordance with the FY 2015 adopted budget.
 
 
 
RECOMMENDATION:
 
Staff recommends approval of this Sublease Agreement and Lease Agreement between the City of San Antonio and Family Services Association of San Antonio, Inc., for space at the Neighborhood Place and the Claude Black Community Center for five-year terms.