COUNCIL COMMUNICATION

DATE: 5-08-02	SUBJECT: FINAL READING OF ORDINANCE NO. 2002-O-089 10. Authorizing the City Manager to execute a lease agreement with South Texas Development Council for approximately 300 square feet constituting Suite No. 22 of Building S-1 located at 1718 E. Calton Road at the Laredo International Airport. Lease term is for one year (1) commencing on April 1, 2002 and ending on March 31, 2003 and may be extended for two (2) terms of one year (1) each ending on March 31, 2004 and March 31, 2005. Monthly rent shall be $375.00 and will be adjusted annually during the primary and extension terms of this lease according to changes in the Consumer Price Index; 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: South Texas Development Council has been a tenant in good standing since 1979. Since the first lease was approved, S.T.D.C. has continuously occupied varying amounts of office space within Building S-1 depending on the level of funding acquired and the programs that the agency operates. Suite No. 22 will be used to office the administrative functions of the South Texas H.I.V. Administrative Agency Program.
FINANCIAL IMPACT: Building Rent Revenues Account No. 242-0000-361-1060 $1.25 Per Square Foot $375.00 x 12 months = $4,500.00
COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommended approval.			STAFF RECOMMENDATION: That the City Manager execute a lease with South Texas Development Council.

ORDINANCE NO. 2002-O-089

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH SOUTH TEXAS DEVELOPMENT COUNCIL FOR APPROXIMATELY 300 SQUARE FEET CONSTITUTING SUITE NO. 22 BUILDING S-1 LOCATED AT 1718 E. CALTON ROAD AT THE LAREDO INTERNATIONAL AIRPORT;

1. LEASE TERM IS FOR ONE (1) YEAR COMMENCING ON APRIL 1, 2002 AND ENDING ON MARCH 31, 2003 AND MAY BE EXTENDED FOR TWO (2) TERMS OF ONE (1) YEAR EACH ENDING MARCH 31, 2004 AND MARCH 31, 2005;

2. MONTHLY RENT SHALL BE $375.00 AND WILL BE ADJUSTED ANNUALLY DURING THE PRIMARY AND EXTENSION TERMS OF THIS LEASE ACCORDING TO CHANGES IN THE CONSUMER PRICE INDEX; PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the Airport Director recommends that the City Council approve the proposed lease between the City of Laredo, as LESSOR, and South Texas Development Council, as LESSEE, for approximately 300 square feet constituting Suite No. 22 of Building 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, the Airport Advisory Committee finds that said lease and contract are 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:

Section 1: The City Manager be hereby authorized to execute a lease with South Texas Development Council for approximately 300 square feet constituting Suite No. 22 of Building S-1 located at 1718 E. Calton Road at the Laredo International Airport, a copy of which lease 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.

AN ORDINANCE AUTHORIZING A LEASE BETWEEN THE CITY OF LAREDO AND SOUTH TEXAS DEVELOPMENT COUNCIL (SUITE NO. 22 OF BUILDING S-1)

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