DEPARTMENT: Convention & Sports Facilities
DEPARTMENT HEAD: Michael J. Sawaya
COUNCIL DISTRICTS IMPACTED: Council District 2
SUBJECT:
Lease Agreement with Malley Restaurants, LLC for the use of parking space in the Alamodome Parking Lot C.
SUMMARY:
This Ordinance authorizes a Lease Agreement with Malley Restaurants, LLC for the use of parking space in the Alamodome Parking Lot C for a three (3) year period beginning October 1, 2017.
BACKGROUND INFORMATION:
Malley Restaurants, LLC operates multiple restaurants located at 302 Montana Street, 321 Montana Street and 323 Montana Street. Malley Restaurants, LLC has expressed a desire to lease approximately 5,200 square feet consisting of eight-seven (87) parking spaces abutting the Alamodome in Parking Lot C, located at 100 Montana Street.
The lease agreement is for parking use by Malley Restaurants, LLC patrons and employees during hours of operation, except when City has an event at the Alamodome. The Alamodome experiences approximately 115 event days a year. Malley Restaurants, LLC may utilize the leased parking spaces on days when the City does not have an event at the Alamodome. Malley Restaturants does have a contingency parking plan for days they are unable to offer parking to patrons and employees at the Dome’s Lot C. This parameter will prevent any adverse impact and loss of parking spaces for events being held at the Alamodome.
ISSUE:
The Lease Agreement with Malley Restaurants, LLC is a one year agreement with an option to renew for two (2) additional one-year extensions. The lease agreement will begin on October 1, 2017 and run through September 30, 2020. The lease agreement includes eighty-seven (87) parking spaces for a lease fee total of $300 per month which will generate $18,000 of revenue over the term of the three year agreement, with extensions exercised.
ALTERNATIVES:
Alternatives to approving the agreement as presented would be to approve the agreement with changes in the scope of services, or to postpone or deny approval. Postponement, or failure to approve the ordinance request, will delay the opportunity to maximize revenue.
FISCAL IMPACT:
This lease agreement will generate a total of $300 per month in revenue with a total of $18,000 in revenue over the entire term and extension. This revenue will be budgeted in the Community and Visitor Facilities Fund.
RECOMMENDATION:
Staff recommends authorizing a Lease Agreement with Malley Restaurants, LLC for the use of parking space in the Alamodome Parking Lot C for a three (3) year period beginning October 1, 2017.