City of San Antonio - File #: 16-3585

• File #: 16-3585
• Type: Real Property Lease
• In control: City Council A Session
• On agenda: 6/30/2016
• Posting Language: An Ordinance authorizing a lease guaranty agreement with Riverbend Garage, LLC obligating the City of San Antonio under the terms of the lease to guarantee the timely payment of rent to be paid by Tenant, United Service Organization, Inc., for 5,130 square feet of retail space at the privately owned Riverbend Garage Building, located at 210 N Presa Street, in City Council District 1, for a term ending September 30, 2020. [Lori Houston, Assistant City Manager, John Jacks, Interim Director, Center City Development]

Date	Ver.	Action By	Action	Result
6/30/2016	1	City Council A Session	adopted	Pass

DEPARTMENT: Center City Development & Operations


DEPARTMENT HEAD: John Jacks


COUNCIL DISTRICTS IMPACTED: 1


SUBJECT:

Lease Guarantee Agreement: United Services Organizations, Inc.

SUMMARY:

This ordinance authorizes the execution of a lease guarantee agreement with Riverbend Garage, L.L.C. obligating the City of San Antonio to pay the monthly rent for the United Service Organization, Inc. (USO) for 5,130 square feet of retail space at the privately owned Riverbend Garage Building, located at 203 East Market Street, in Council District 1, for a term ending September 30, 2020.


BACKGROUND INFORMATION:

Located at 210 N. Presa Street with retail frontage on Commerce and Market Street, the Riverbend Garage was built by the City in the 1970's and sold in 2008 to the current owner for $22,400,000.00. At the time of the sale the USO was the City's tenant in a first level retail space. On September 11, 2008, City Council approved an agreement for the City to continue to pay the USO's monthly rent as a condition of the sale. This agreement has expired and the landlord has requested that the City confirm its intent to continue to pay the USO rent, subject to future budget appropriations, through the end of the USO lease term in September 2020.

USO in San Antonio is unique in its approach to delivery of services to members of the military. Its typical model calls for locations in most major United States airports including San Antonio International, with no other off airport locations in the United States. As a demonstration of its support to military organizations, San Antonio city leaders persuaded USO to open a second location downtown in exchange for the City's agreement to subsidize the cost of occupancy for the USO's downtown location. In turn, USO finances the daily operation of the center including staff, organizational support and development of a network of community leaders to manage an enhanced system of service delivery ...