DEPARTMENT: Center City Development & Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 3
SUBJECT:
Metro Health Lease Amendment with Brooks Development Authority
SUMMARY:
This ordinance authorizes an amendment to an existing lease with the Brooks Development Authority (BDA) providing for the extension of the lease for an additional three years ending September 30, 2024 for use of 23,489 square feet of office, warehouse and lab space located at 2509 Kennedy Circle, in Council District 3, to support Metro Health’s Public Health Emergency Preparedness (PHEP), the Public Center for Environmental Health Divisions (PCEH), and related laboratory services.
BACKGROUND INFORMATION:
Located at 2509 Kennedy Circle on the Brooks City Base campus, the City has occupied the subject premises since September 2010 for use as office, warehouse and laboratory space by Metro Health’s PHEP, PCEH, and Laboratory Services.
These functions are responsible for all associated activities regarding public health all-hazards preparedness for the City of San Antonio, Bexar County, and all municipal jurisdictions within Bexar County.
The program develops local capacity to prevent, prepare for and respond to a broad range of emergency scenarios, including biological, chemical, radiological, natural disasters, and emerging infectious diseases that may affect Bexar County. These activities require Metro Health to acquire and maintain stockpiles of supplies that can be immediately dispensed in the event of emergency.
ISSUE:
The City has made significant investment into the property including development of one of the few BSL 3 labs in South Texas. In order to recoup its investment and ensure the continuing viability of its emergency preparedness infrastructure, extending the subject lease an additional three years is a prudent course of action.
ALTERNATIVES:
The City could choose not to extend the lease for an additional three years, however, there is a demonstrated need for the functions housed in this facility. BDA’s offer to extend the lease that otherwise has no further options to extend is in the City’s interest.
FISCAL IMPACT:
The changes to the existing lease are outlined in the chart below.
|
Item |
Presently |
Proposed |
Net Change |
|
Premises Size |
23,489 SF |
23,489 SF |
No change |
|
Term |
Ends 9/30/2021 |
Ends 9/30/2024 |
3 years longer |
|
Present Annual Rent |
$245,317.60 |
$245,317.60 |
No change |
|
Termination Right |
Any time upon 120 days’ notice |
Any time upon 120 days’ notice |
No change |
The terms of this amendment will not change the rent currently being paid in FY2020 which will total $20,456.93 for the remaining month of the fiscal year.
The funding is a mix of grant funds and general fund budget administered by Metro Health. Funding for future years is subject to grant awards and appropriation by City Council.
RECOMMENDATION:
Staff recommends an amendment to an existing lease with the Brooks Development Authority for the continued use of leased premises located at 2509 Kennedy Circle, in Council District 3, to support Metro Health programs for a term ending September 30, 2024.