DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 6
SUBJECT:
Renewal, Amendment and Extension of Lease Agreement for District 6 Council Office
SUMMARY:
This ordinance authorizes the Renewal and Extension of Lease Agreement for the continued use of approximately 1,520 square feet of office space located at 8373 Culebra Rd., Ste. 202, for a five year renewal term expiring March 31, 2021 at the annual rate of $21,879 for the first three years and $22,972.92 for the last two years, with the right to terminate the lease without cause with 60 days advance written notice.
BACKGROUND INFORMATION:
The City of San Antonio has been a tenant at this location since April 1, 2011 for use as the City Council District 6 Constituent Office. It is in the City’s best interest to renew this lease agreement for an additional five year term in an effort to ensure continued uninterrupted service to the constituents.
ISSUE:
The original Lease Agreement has expired and the permissible holdover option has been exercised.
ALTERNATIVES:
District 6 staff could continue to occupy this office on a temporary basis at a higher rental rate while a suitable new location is pursued.
FISCAL IMPACT:
Under the current term of the lease agreement, the current annual rental rate is $21,879. Under the terms of the proposed lease renewal, the annual rental rate will not change during the first three years of the renewal term. During years four and five the annual rental rate will be $22,972.92. Funds for this lease are included in the FY 2016 adopted General Fund Budget.
|
Item |
Present Lease |
New Lease |
Change |
|
Term |
Currently in Holdover |
Ends March 31, 2021 |
Set term established |
|
Rent |
$21,879.00 annually |
$21,879.00 annually Years 1-3 |
$0 Years 1-3 |
|
|
|
$22,972.92 annually Years 4-5 |
$1,093.92 Years 4-5 |
|
Size |
1,520 S.F. |
1,520 S.F. |
None |
|
Termination |
Anytime with 90 day written notice |
Anytime with 60 day written notice |
Shorter termination notice |
RECOMMENDATION:
Staff recommends approval to renew the lease agreement for the term ending March 31, 2021 for 8323 Culebra Rd., Ste. 202 for the District 6 Constituent Office with WC Culebra Crossing, LP.