DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Amendment of a Ground Lease between the City of San Antonio and Fairmont Investments, LLC
SUMMARY:
An ordinance authorizing the Fourth Amendment of the Fairmont Hotel Ground Lease between the City of San Antonio and Fairmont Investments, LLC (Fairmont) outlining the process pertaining to assignment and sublease of the ground lease for the City owned property located at 401 South Alamo Street in Council District 1. This ordinance will have no fiscal impact.
BACKGROUND INFORMATION:
The City owns the 15,120 square foot land area upon which the Fairmont Hotel is situated which in accordance with a ground lease dated January 17, 1985 Fairmont owns the improvements located thereon. Pursuant to Council approval this ground has a term that will expire on September 30, 2042.
ISSUE:
Among the conditions imposed by the lease is a requirement that any sublease of portions of the Fairmont owned improvements requires Council approval. The proposed amendment would streamline the process for subletting the property by allowing the City to administratively approve the sublease for the proposed use as long as the lease use is compliant with existing zoning and conducive to the City's objective to retain the historic nature of the property. The lease would still require Council approval for any proposed assignment of the lease.
ALTERNATIVES:
The City Council could opt not to approve this lease amendment and the alternative would be that any sublease of portions of the property would require Council approval, but given the requirements imposed by local zoning ordinances and the limitations imposed by the necessity to act in good faith, it is unlikely that relieving Council of the requirement to approve every sublease would diminish the City's ability to promote the Fairmont's efforts to operate the hotel in a manner that that reflects its ...
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