DEPARTMENT: Parks and Recreation
DEPARTMENT HEAD: Xavier D. Urrutia
COUNCIL DISTRICTS IMPACTED: District 10
SUBJECT:
Amendment #1 to the Lease Agreement with the Texas Transportation Museum
SUMMARY:
This ordinance authorizes Amendment #1 to extend the term of the Lease Agreement with the Texas Transportation Museum for management, operations and maintenance to the property at McAllister Park until June 30, 2029.
BACKGROUND INFORMATION:
Texas Transportation Museum (TTM) is non-profit organization dedicated to providing a vehicle and train museum to San Antonio citizens and visitors. On October 31, 1968, City Council passed Ordinance No. 37012 authorizing a 25 year Lease Agreement with TTM for use of approximately 37 acres at McAllister Park. Over the next 20 years, TTM acquired significant historical transportation articles for the museum and constructed numerous improvements including a vehicle showroom, model train exhibit, and operational railroad line permitting visitors to take a short train ride.
In November 1988, City Council passed Ordinance 68325 replacing TTM’s initial Lease and authorized a new Lease Agreement in order for TTM to secure private contributions for future improvements through demonstration of a long-term agreement with the City of San Antonio. In consideration of TTM’s improvements and their desire to secure contributions for future expansion and maintenance of the museum, TTM negotiated a 10 year Lease Agreement. Upon expiration, the City and TTM entered into a new Lease Agreement for the term of 10 years with two 10-year renewal options.
Amendment #1 shall commence on July 1, 2019, and expire on June 30, 2029. In lieu of rent, TTM shall be responsible for operations and maintenance of the licensed area at McAllister Park. In addition, the tenant will be permitted to operate concessions with proceeds benefitting their program and to offset the cost of operations and maintenance. All other terms and conditions of the current Lease Agreement will remain in effect.
ISSUE:
This ordinance authorizes Amendment #1 to extend the term of the Lease Agreement with the Texas Transportation Museum for management, operations and maintenance to the property at McAllister Park until June 30, 2029.
ALTERNATIVES:
City Council could elect not to approve this action, resulting in the Parks and Recreation Department maintaining the Texas Transportation Museum at McAllister Park which would have a corresponding budgetary impact.
FISCAL IMPACT:
This ordinance authorizes Amendment #1 to extend the term of the Lease Agreement with the Texas Transportation Museum for management, operations and maintenance to the property at McAllister Park until June 30, 2029. There is no fiscal impact associated with this ordinance.
RECOMMENDATION:
Staff recommends approval of Amendment #1 to extend the term of the Lease Agreement with the Texas Transportation Museum for management, operations and maintenance to the property at McAllister Park until June 30, 2029.