COUNCIL COMMUNICATION

DATE:

       

5-08-02

SUBJECT:  FINAL READING OF ORDINANCE NO. 2002-O-088

Authorizing the City Manager to execute a Lease Amendment to the lease agreement authorized by Ordinance No. 2001-0-138 dated July 16, 2001, between the City of Laredo and South Texas Development Council for approximately 2,048 square feet constituting Suite Nos. 12, 14, 16 and 18 of Building No. S-1 located at 1718 E. Calton Road.  Said Amendment will decrease the leased area from 2,048 square feet to 1,376 square feet by deleting Suite No. 16 and decrease the monthly rent accordingly from $2,580.50 to $1,733.78, effective October 1, 2001.  All other terms and conditions remain in effect and unchanged; providing for an effective date.  

 

INITIATED BY:    Cynthia Collazo

                                 Assistant City Manager                            

STAFF SOURCE:    Jose L. Flores

                                    Airport Director

 

PREVIOUS ACTION:  On April 15, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

 

 

BACKGROUND: 

 

On July 16, 2001, South Texas Development Council (STDC) entered into a lease with the City of Laredo for approximately 2,048 square feet constituting Suite Nos. 12, 14, 16 and 18 of Building No. S-1.  Lease term is for one (1) year commencing on July 1, 2001 and ending on June 30, 2002, and may be extended for one (1) term of one (1) year ending on June 30, 2003. 

 

Due to budgetary constraints, STDC now wishes to decrease its leased area from 2,048 square feet to 1,376 square feet by Lessee vacating Suite 16 consisting of approximately 672 square feet and adjust the monthly rent accordingly.

 

 

 

 

 

 

FINANCIAL IMPACT:               Building Rent Revenues

                                                        Account No. 242-0000-361-1060

                                                        $1.26 Per Square Foot

                                                        $1,733.78 x 8 Months = $13,870.24

 

 

COMMITTEE RECOMMENDATION:  The Airport Advisory Committee recommends approval.

STAFF RECOMMENDATION:  That the City Manager execute a lease amendment with South Texas Development Council.

 

 

 

 

 

 

ORDINANCE NO. 2002-O-088

 

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AMENDMENT TO THE LEASE AGREEMENT AUTHORIZED BY ORDINANCE NO. 2001-0-138 DATED JULY 16, 2001, BETWEEN THE CITY OF LAREDO AND SOUTH TEXAS DEVELOPMENT COUNCIL FOR APPROXIMATELY 2,048 SQUARE FEET CONSTITUTING SUITE NOS. 12, 14, 16 AND 18 OF BUILDING NO. S-1 LOCATED AT 1718 E. CALTON ROAD.  SAID AMENDMENT WILL DECREASE THE LEASED AREA FROM 2,048 SQUARE FEET TO 1,376 SQUARE FEET BY DELETING SUITE NO. 16 AND DECREASE THE MONTHLY RENT ACCORDINGLY FROM $2,580.50 TO $1,733.78, EFFECTIVE OCTOBER 1, 2001.  ALL OTHER TERMS AND CONDITIONS REMAIN IN EFFECT AND UNCHANGED; PROVIDING FOR AN EFFECTIVE DATE.  

 

            WHEREAS, the Airport Director recommends that the City Council approve the proposed lease amendment between the City of Laredo, as LESSOR, and South Texas Development Council, as LESSEE, for office space in Building No. S-1 located at 1718 E. Calton Road, at the Laredo International Airport, as a contract and in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport.

 

            WHEREAS, LESSOR and LESSEE entered into a lease agreement authorized by Ordinance No. 2001-0-138 dated July 16, 2001, for approximately 2,048 square feet constituting Suite Nos. 12, 14, 16 and 18 of Building No. S-1 located at 1718 E. Calton Road; and

 

            WHEREAS, LESSOR and LESSEE agree to decrease the leased area from 2,048 square feet to 1,376 square feet by LESSEE vacating Suite 16 consisting of approximately 672 square feet, and that the monthly rent be adjusted accordingly; and;

 

            WHEREAS, effective October 1, 2002, the monthly rent shall be decreased from $2,580.50 to $1,733.78.  All other terms and conditions remain unchanged and in effect; and

 

            WHEREAS, the Airport Advisory Committee finds that said lease amendment is  in the best interest of the Airport and recommends that the City Council approve the proposed lease; and

 

            WHEREAS, the City Council of the City of Laredo having heard the recommendations of the Airport Director and of the Airport Advisory Committee agrees with same.

 

            NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:

AN ORDINANCE AUTHORIZING A LEASE AMENDMENT BETWEEN THE CITY OF LAREDO AND SOUTH TEXAS DEVELOPMENT COUNCIL (SUITE NO. 12, 14, AND 18 OF BUILDING NO. S-1)

 

 

Section 1:         The City Manager be hereby authorized to execute a lease amendment to the lease agreement authorized by Ordinance No. 2001-0-138 dated July 16, 2001 between the City of Laredo and South Texas Development Council wherein the leased area is decreased from 2,048 square feet to 1,376 square feet by Lessee vacating Suite 16 consisting of approximately 672 square feet and the monthly rent is adjusted accordingly from $2,580.50 to $1,733.78, a copy of which lease amendment is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.

 

Section 2:         This Ordinance shall become effective upon passage hereof.

 

 

            PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2002.

 

 

 

_________________________

ELIZABETH G. FLORES

MAYOR

 

ATTEST:

 

_________________________

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

APPROVED AS TO FORM:

JAIME L. FLORES

CITY ATTORNEY

 

 

BY:_______________________

VALERIA M. ACEVEDO

ASSISTANT CITY ATTORNEY