COUNCIL COMMUNICATION

DATE: 6-03-02	SUBJECT: FINAL READING OF ORDINANCE NO. 2002-O-118 Authorizing the City Manager to execute a lease agreement between the Airport Fund, as Lessor, and Laredo Candle Company, LP, as Lessee, for Building No. 1005 consisting of approximately 28,800 square feet and located at 4608 Daugherty Avenue at the Laredo International Airport. The lease term is for sixty (60) days commencing May 21, 2002 and ending on July 18, 2002. Monthly rent shall be $11,500.00 payable in advance The monthly rent obligation shall commence effective May 21, 2002.
INITIATED BY: Cynthia Collazo Assistant City Manager		STAFF SOURCE: Jose L. Flores Airport Director
PREVIOUS ACTION: On May 20, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed. BACKGROUND: Laredo Candle Company is in dire need of temporary air-conditioned building space until it completes adding an a/c system to its own building. It estimates a 60-day period to complete said a/c installation. Because of Laredo Candle Company’s urgency they are requesting occupancy of the premises before June 3, 2002 reading and approval of this Ordinance. Laredo Candle is aware that the lease is subject to City Council approval and that they are proceeding at their sole risk. The hot Laredo temperatures are adversely affecting their production of candles. Laredo Candle Company is a major and growing employer in our community. Laredo Candle agrees to lease the entire approximate 28,800 S.F. building even though they only need approximately 10,000 to 15,000 S.F. Building No. 1005 was recently (February 2002) vacated by LUX Products and we do not have serious potential lessees for the building.
FINANCIAL: Building Rent Revenues Account No. 242-0000-361-1060 $ 0.40 Per Square Foot Per Month being the Appraised Fair Market Rent $ 11,500.00 Per Month $ 23,000.00 for sixty days
COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.		STAFF RECOMMENDATION: That the City Manager be authorized to execute a lease agreement between the Airport Fund, as Lessor, and Laredo Candle Company, as Lessee.

ORDINANCE NO. 2002-O-118

AUTHORIZING THE CITY MANAGER TO EXECUTE

A LEASE AGREEMENT BETWEEN THE AIRPORT FUND,

AS LESSOR, AND LAREDO CANDLE COMPANY, AS

LESSEE, FOR BUILDING NO. 1005 CONSISTING OF

APPROXIMATELY 28,800 SQUARE FEET AND LOCATED

AT 4608 DAUGHERTY AVENUE AT THE LAREDO

INTERNATIONAL AIRPORT. THE LEASE TERM IS FOR

SIXTY (60) DAYS COMMENCING MAY 21, 2002 AND

ENDING ON JULY 18, 2002. MONTHLY RENT SHALL

BE $11,500.00 PAYABLE IN ADVANCE THE MONTHLY

RENT OBLIGATION SHALL COMMENCE EFFECTIVE

MAY 21, 2002, PROVIDING FOR EFFECTVIE DATE.

WHEREAS, the Laredo Candle Company, LP is a major and growing employer in our community and is in need of temporary air conditioned building space to store and process wax candles and desires to lease from the City of Laredo Building No. 1005 located at 4608 Daugherty at the Laredo International Airport; and

WHEREAS, the Airport Director recommends that the City Council approve the proposed lease being in the best interest of the City, and

WHEREAS, the City Council of the City of Laredo is of the same opinion.

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

Section 1: The City Manager be and is hereby authorized to execute a sixty day lease agreement with Laredo Candle Company, LP as Lessee for Building No. 1005 consisting of approximately 28,800 square feet and located at 4608 Daugherty at the Laredo International Airport

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

PASSED BY THE CITY COUNCIL AND APROVED 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