City of San Antonio - File #: 16-3267

• File #: 16-3267
• Type: Real Property Lease
• In control: City Council A Session
• On agenda: 6/9/2016
• Posting Language: An Ordinance authorizing a lease agreement with the Orthodox Ecumencial Church, Inc. d/b/a Little Church of La Villita, effective July 1, 2016 through June 30, 2021. [Lori Houston, Assistant City Manager; John Jacks, Interim Director, Center City Development & Operations]
• Indexes: La Villita, Leases
• Related files: 21-3686

Date	Ver.	Action By	Action	Result
6/9/2016	1	City Council A Session	Motion to Approve	Pass

DEPARTMENT: Center City Development and Operations Department                     

DEPARTMENT HEAD: John Jacks

COUNCIL DISTRICTS IMPACTED: 1

SUBJECT:

La Villita Lease Agreement

SUMMARY:

This ordinance authorizes a La Villita lease agreement with the Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita, effective July 1, 2016 through June 30, 2021.

BACKGROUND INFORMATION:

The Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita (Little Church) has been a tenant within La Villita for over 50 years.  The Little Church occupies buildings 12 and 13 and operates a sanctuary, food pantry, and artist gallery.  The Little Church has been a month-to-month tenant since its last agreement expired July 31, 2015.  The proposed agreement would allow the Little Church to remain in buildings 12 and 13 for an additional five-years effective July 1, 2016, and provides two, two-year renewal options.  The Little Church will pay a monthly base rent rate of $1.15 per square foot for the artist gallery space totaling 642 square feet and $0.32 per square foot for the sanctuary, food pantry, and church administrative space totaling 3,611 square feet.  CAM and utilities fees will also be assessed.

ISSUE:

Approval of this ordinance is consistent with the City’s practice of leasing City-owned property in support of downtown retail activity.

ALTERNATIVES:

The City may elect not to approve this lease agreement, which would result in the Little Church’s occupancy becoming at will or terminating.

FISCAL IMPACT:

The total amount to be paid the Little Church for the lease term effective July 1, 2016 is summarized below.  The base rental rate will increase 2.00% annually and CAM and utilities fees will increase 2.5% annually. 

Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita
Lease Year	Monthly Base Rent	Monthly Utilities & CAM	Monthly Total	Yearly Total
July 1, 2016 - June 30, 2017	$1,893.82	$1,109.89	$3,003.71	$35,034.48
July 1, 2017 - June 30, 2018	$1,942.77	$1,137.74	$3,080.51	$35,929.98
July 1, 2018 - June 30, 2019	$1,991.72	$1,165.59	$3,157.31	$36,825.47
July 1, 2019 - June 30, 2020	$2,040.67	$1,193.44	$3,234.11	$37,720.96
July 1, 2020 - June 30, 2021	$2,089.62	$1,221.29	$3,310.91	$38,616.46
Total				$184,127.35

All funds received will be deposited into the General Fund.

RECOMMENDATION:

Staff recommends approval of the La Villita lease agreement the Orthodox Ecumenical Church, Inc. d/b/a Little Church of La Villita, effective July 1, 2016 through June 30, 2021.