city of San Antonio


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File #: 19-6684   
Type: Real Property Lease
In control: City Council A Session
On agenda: 9/12/2019
Posting Language: Ordinance approving an amendment to the lease agreement with The Hertz Corporation to extend the term of the lease for one year with an option to extend for an additional year. The revenue for the first year is $223,426.39, and $256,940.35 if extended for a second year, for a total of $480,366.74 which will be deposited into the Airport Operating and Maintenance Fund. [Carlos Contreras, Assistant City Manager; Russell Handy, Director, Aviation]
Attachments: 1. Signed DCD Hertz, 2. Signed Hertz Agreement, 3. Draft Ordinance, 4. Ordinance 2019-09-12-0713
Related files: 19-5575
DEPARTMENT: Aviation


DEPARTMENT HEAD: Russell J. Handy


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Amendment to Lease Agreement with The Hertz Corporation at the San Antonio International Airport


SUMMARY:

City Council consideration of an ordinance approving an amendment to the lease agreement with The Hertz Corporation (Hertz) at the San Antonio International Airport to extend the term for one year with a possible 1 year extension. The amendment will generate $480,366.74 over the two years, if extended, which will be deposited in the Airport Operating and Maintenance Fund. The amendment will increase the amount of the performance guarantee from $97,000.00 to $111,775.02 and add new language related to the insurance certificate tracking provider that airport system tenants are now required to use.


BACKGROUND INFORMATION:

In June 2010, City Council authorized a lease agreement with Hertz through Ordinance No. 2010-06-17-0543 for Building 1170 and 310,179 square feet of ground space at 910 West Cargo Road. The firm operates out of the Consolidated Rental Car Facility at the San Antonio International Airport but would like to continue leasing the leasehold at 910 West Cargo Road while the city considers development possibilities for the property.


ISSUE:

Aviation staff and Hertz negotiated an amendment that would extend the term for an additional year. The extension will begin the day the amendment is approved by City Council and will generate revenue in the amount $223,426.39 for the first year. At the discretion of the Aviation Director, the agreement can be extended for a second year and will generate revenue in the amount of $256,940.35. With a 90-day written notice, either party can terminate the lease agreement.

The amendment will also increase the performance guarantee from $97,000.00 to $111,775.02. Since 2010 when the original lease agreement was approved, the Aviation Department has implemented a certificate of insurance (COI) managem...

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