City of San Antonio - File #: 17-5883

• File #: 17-5883
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 11/9/2017
• Posting Language: An Ordinance authorizing the First Amendment and Extension to the Amendment and Restatement of the Henry B. Gonzalez Convention Center (Business Center) Lease Agreement with Texas Badger Developments-1, LLC (d/b/a the The UPS Store) for the lease of space for a five-year renewal term from January 1, 2018 through December 31, 2022, with estimated annual revenue of $30,000.00 and $150,000.00 over the five-year renewal term, and providing for increased customer service training and additional signage. [Carlos Contreras, Assistant City Manager; Michael Sawaya, Director, Convention & Sports Facilities]
• Indexes: Convention Center

Date	Ver.	Action By	Action	Result
11/9/2017	1	City Council A Session	adopted	Pass

DEPARTMENT: Convention & Sports Facilities


DEPARTMENT HEAD: Michael J. Sawaya


COUNCIL DISTRICTS IMPACTED: District 1


SUBJECT:

An Extension to the of Henry B. Gonzalez Convention Center (Business Center) Lease Agreement.


SUMMARY:

An Ordinance authorizing an extension to the Henry B. Gonzalez Convention Center (Business Center) Lease Agreement with Texas Badger Developments-1, LLC (d/b/a The UPS Store) for leased space, for a five-year Renewal Term from January 1, 2018 through December 31, 2022, with estimated annual revenue of $30,000.00 and $150,000.00 over the five-year Renewal Term.


BACKGROUND INFORMATION:
The UPS Store provides a full range of exclusive and non-exclusive products and services to visitors of the Henry B. Gonzalez Convention Center. The services include packing and shipping services, document services, typing/word processing services, mailbox rental, computer services, passport and photo ID services, notary services, fax services, and a variety of office and mailing supplies, as well as sundries, to clients and visitors of the Henry B. Gonzalez Convention Center.
The UPS store has been a tenant of the Convention Center since 2003. The Amendment and Restatement of the Henry B. Gonzalez Convention Center (Business Center) Lease Agreement was last approved by the passage of Ordinance 2013-11-21-0787, approved on November 21, 2013 and runs through December 31, 2017. This item, subject to Council approval, will provide an additional five-year renewal through December 31, 2022.
In exchange for the right to provide these services, The UPS Store shall pay the City a Minimum Monthly Rent, the greater of (i) a reduced Monthly Base Rent of $2,500.00, based on 1,184 square feet, or (ii) a Percentage Rent ("Percentage Rent") equal to eleven percent (11%) on monthly Gross Sales of Exclusive Products and Services of $40,000.00 or less, or twelve percent (12%) on monthly Gross Sales of Exclusive Products and Services of $40,000.01. Curr...