DEPARTMENT: Center City Development and Operations
DEPARTMENT HEAD: John Jacks
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Market Square Outdoor Patio License Agreements
SUMMARY:
This ordinance authorizes the approval of patio license agreements in Market Square with Be Frida, Casa Rivera Arts & Crafts, El Merkadito, Texas Hats and Texas Store to utilize patio space adjacent to:
1. 110 Produce Row
2. 112 Produce Row
The License Agreements will commence upon City Council approval and continue through September 30, 2025.
BACKGROUND INFORMATION:
The City of San Antonio owns and manages Market Square, a unique and historic public marketplace that plays a vital role in the life, culture and economy of San Antonio. With a retail history dating back to the nineteenth century, Market Square provides a unique and authentic public market experience, offering retail sales, holiday celebrations, and continuous programming throughout the year. There are currently 14 businesses that utilize outdoor patio space in Market Square Plaza, ranging from cafes to shops specializing in local, regional and Latin American products.
Be Frida, Casa Rivera Arts & Crafts, El Merkadito, Texas Hats, and Texas Store, all located in Market Square along Produce Row, utilize approximately 1,330 square feet of adjacent City-owned patio space for merchandise display. Patio square footage and license amounts are listed below.
Licensee |
Square Footage |
License Amount |
Be Frida |
286 |
$449.02 |
Casa Rivera Arts & Crafts |
255 |
$400.35 |
El Merkadito |
368 |
$577.76 |
Texas Hats |
186 |
$292.02 |
Texas Store |
235 |
$368.95 |
In FY 2021, tenants will be paying $1.57 per square foot per month or approximately $2,088.10 per month. Thereafter, each October 1st for the duration of the agreement, the rental rate per square foot will increase 2%.
ISSUE:
Approval of this ordinance is consistent with City of San Antonio policy to license public property in Market Square for retail purposes under regulations established in Chapter 32, Article II of the City’s Municipal Code. Approving these license agreements require passage by City Council. A copy in substantially final form of the proposed agreements is attached to the ordinance for execution after City Council approval
ALTERNATIVES:
City Council could choose not to license additional public property in Market Square, which would cause the City to forego additional revenue and would leave vacant spaces in the Market Square Plaza.
FISCAL IMPACT:
In FY 2021 the fiscal impact will be $12,528.60. Rent per square foot is $1.57 and will increase by 2% each October 1st. Revenue from the License Agreements will be deposited in the City’s Market Square Improvement Fund.
RECOMMENDATION:
Staff recommends approval of this ordinance authorizing the approval of the patio license agreements with Be Frida, Casa Rivera Arts & Crafts, El Merkadito, Texas Hats, Texas Store.