DEPARTMENT: Information Technology Services Department (ITSD)
DEPARTMENT HEAD: Craig Hopkins
COUNCIL DISTRICT(S) IMPACTED: City Wide
SUBJECT: Approval of a Lease and Funding Agreement for the City's Alamo Regional Security Operations Center (ARSOC)
SUMMARY:
Consideration of the following items related to the Alamo Regional Security Operations Center ("ARSOC") located at Port San Antonio:
A. Authorizing a Primary Lease Agreement between the City of San Antonio as Tenant and Port Authority of San Antonio as Landlord to lease approximately 20,363 square feet of space at 638 Davy Crockett, Building 940 located at Port San Antonio in order for the City to establish the Alamo Regional Security Operations Center ("ARSOC").
B. Authorizing a Funding Agreement between the City of San Antonio, CPS Energy, and Port Authority of San Antonio to design and build out the facility for which the Alamo Regional Security Operations Center ("ARSOC") will be located, and a Sublease Agreement between the City of San Antonio and CPS Energy to be entered into upon commencement of the Primary Lease Agreement.
The total project budget is $4 million comprised of $2.5 million from the City's Capital Budget and a contribution of $1.5 million from CPS Energy. The Primary Lease is zero rent for 15 years with a 5 year renewal option. It includes a tenant improvement allowance of up to $2,705,895 by Port SA, of which $2,205,885 is due within 30 days of commencement of the Primary Lease and $500,010 by December 31, 2021. A $10 interest charge will be assessed by Port SA, and is included in the total allowance above, so long as the tenant improvement balance is paid by December 31, 2021; otherwise, the remaining balance will be repaid by City on a mortgage style amortization with equal monthly payments over the remaining term of the Lease plus 7% annual interest rate applied on a 30/360-day basis.
The tenant improvement allowance of $2,705,895 is paid to ...
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