DEPARTMENT: Center City Development and Operations Department
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
River Walk Lease Agreement - Westin Riverwalk
SUMMARY:
This ordinance authorizes a five-year lease agreement with GPIF WSAN Riverwalk Hotel LLC. d/b/a The Westin Riverwalk, San Antonio (Westin Riverwalk) for the use of 1,173.59 square feet of River Walk patio space for food and beverage service.
BACKGROUND INFORMATION:
City Council authorized a lease agreement with the Westin Riverwalk for use of 1,173.59 square feet of River Walk patio space effective March 1, 2000 through February 28, 2005. The agreement included three, five-year renewal options, the last of which expired on February 28, 2020. Due to a recent change in ownership and the difficulties of operating during the COVID-19 pandemic, the lease agreement reverted to a month-to-month arrangement. Through this period the Westin has remained in good standing.
This ordinance will authorize a new five-year lease agreement with the Westin Riverwalk effective February 5, 2021 through February 4, 2026. Due to the adverse economic impact the COVID-19 pandemic has had on the City’s visitor industry, the lease rates for year one and two of the lease agreement will remain flat at $1.91 per square foot per month. Lease rates for remaining years will increase by 1.5% annually. Lastly, the lease agreement provides for one, five-year renewal option.
ISSUE:
Approval of this ordinance is consistent with the City’s policy of leasing River Walk patio space to adjacent businesses for outdoor dining alongside the San Antonio River.
ALTERNATIVES:
The City may elect not to lease to the Westin Riverwalk, however, the patio space will then be vacant and underutilized.
FISCAL IMPACT:
The total amount for the proposed lease period is summarized below:
|
Lease Period |
Total |
|
February 5, 2021 - February 4, 2022 |
$26,898.72 |
|
February 5, 2022 - February 4, 2023 |
26,898.72 |
|
February 5, 2023 - February 4, 2024 |
27,321.12 |
|
February 5, 2024 - February 4, 2025 |
27,743.64 |
|
February 5, 2025 - February 4, 2026 |
28,166.16 |
|
Total |
$137,027.36 |
All funds received will be deposited into the River Walk Capital Improvement Fund.
RECOMMENDATION:
Staff recommends approval of the lease with GPIF WSAN Riverwalk Hotel LLC. d/b/a The Westin Riverwalk, San Antonio for the use of 1,173.59 square feet of River Walk patio space for food and beverage service.