COUNCIL COMMUNICATION

DATE: 06/17/2002

SUBJECT: FINAL READING OF ORDINANCE NO. 2002-O-124 AUTHORIZING THE CITY MANAGER TO CANCEL THE 1978 PARKING LOT LEASE WHICH WAS PREVIOUSLY AMENDED IN JULY 2000, BETWEEN RIVER DRIVE MALL INC., AND THE CITY OF LAREDO, NOW DECLARING THE NECESSITY TO RE-ACQUIRE THE REMAINING TWO TRACTS OF LAND OF THE LEASE, DESCRIBED AS BLOCK “X” AND BLOCK “Y” SITUATED IN THE WESTERN DIVISION, LAREDO, WEBB COUNTY, TEXAS FOR A PUBLIC PURPOSE AND PUBLIC USE, IN ORDER TO PROVIDE AND ENHANCE ADDITIONAL DOWNTOWN LOCAL, TOURIST, AND VISITOR PARKING AND SHOPPING OPPORTUNITIES.

INITIATED BY: Larry Dovalina, City Manager STAFF SOURCE: Roberto Murillo, P.E., Traffic Safety Director

PREVIOUS COUNCIL ACTION:

On July 18, 1978 the City of Laredo and River Drive Mall, Inc., entered into a parking lot lease agreement upon the river vega tracts adjacent to the Rio Grande River and described as Blocks Number “X”, “Y”, and “Z” situated in the Western Division, Laredo, Webb County, Texas. The 1978 lease has a total term of 35 years, including renewal options which does not expire until July 17, 2013, at $300.00 a month in rent.

This lease states that in the event that the City of Laredo needs to re-acquire all or a portion of the leased premises, then the City shall be required to pass a resolution stating that there is a municipal public need and purpose for the re-acquisition of all or a portion of the leased property.

On May 1, 2000, the City Council approved and passed a Resolution No. 2000-R-066 declaring that the Block “Z” portion of the property under lease was needed for a municipal public need and purpose determining that it shall be released and that the lease shall terminate as to that portion of the property needed for a municipal public use and the property with all improvements thereon shall belong to the City, at no cost. The determination as to the municipal public use and purpose shall rest solely with the City and said determination shall be final and binding on the Lessee.

Ordinance 2000-O-182 was passed by the City Council and approved by the Mayor on July 17, 2000 amending the 1978 lease authorizing the re-acquisition of Block Number “Z”, as authorized by Resolution No. 2000-R-066, and reducing the leased area from 3 blocks to 2 blocks, namely Blocks Number “X” and “Y”, situated in the Western Division, City of Laredo, Webb County, Texas, and reducing the fair market rent by 1/3 from $300.00 to $200.00 PER MONTH.

On April 04, 2002, Resolution No. 2002-R-031 declaring the public necessity to re-acquire the lease for the two tracts of land described as Blocks “X” and Block “Y” was passed by the City Council and approved by the Mayor. The Resolution declared that upon passage of said resolution, the portions of the property remaining under lease that are needed for a municipal public need and purpose, shall be released and that the lease shall terminate as to those remaining portions of the property needed for a municipal public use and the property .

Now, by virtue of said resolution declaring that Block “X” and Block “Y” are needed for a municipal public need and purpose , this Ordinance is being introduced to cancel the1978 lease and to reacquire Blocks “X” and “Y” which are the remaining portions of the property remaining under lease, and ordaining that the lease shall terminate as to those portions of the property.

FINANCIAL:
The amended 1978 lease agreement will reduce the City of Laredo’s rental income from $200.00 a month to zero and cancel the lease on the remaining leased area.
RECOMMENDATION:	STAFF: Recommends that City Council approves this ordinance.

AN ORDINANCE 2002-O-124

AUTHORIZING THE CITY MANAGER TO CANCEL THE 1978 PARKING LOT LEASE WHICH WAS PREVIOUSLY AMENDED IN JULY 2000, BETWEEN RIVER DRIVE MALL INC., AND THE CITY OF LAREDO, NOW DECLARING THE NECESSITY TO RE-ACQUIRE THE REMAINING TWO TRACTS OF LAND OF THE LEASE, DESCRIBED AS BLOCK “X” AND BLOCK “Y” SITUATED IN THE WESTERN DIVISION, LAREDO, WEBB COUNTY, TEXAS FOR A PUBLIC PURPOSE AND PUBLIC USE, IN ORDER TO PROVIDE AND ENHANCE ADDITIONAL DOWNTOWN LOCAL, TOURIST, AND VISITOR PARKING AND SHOPPING OPPORTUNITIES.

WHEREAS, The city of Laredo (“City”) is a home rule municipal corporation chartered under the laws of the State of Texas, with its principal place of business located at 1110 Houston Street, Laredo, Texas; and

WHEREAS, the City of Laredo is one of the fastest growing cities in the United States; and

WHEREAS, the execution of this lease amendment is deemed to be in the best interests of the citizens of the City of Laredo; and

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

Section 1.

Authorizing the City Manager to enter into and execute an amendment to the 1978 parking lot lease agreement between the City of Laredo and River Drive Mall, Inc., due to the re-acquisition of the lease for Block Number “X” and Block Number “Y”, as authorized by Resolution No. 2002-R-031 and, terminating leased area from 2 blocks to none with no future rental amount prescribed by virtue of cancellation of the lease.

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

_______________________

ELIZABETH G. FLORES

MAYOR

ATTEST:

_______________________

GUSTAVO GUEVARA JR.

CITY SECRETARY

APPROVED AS TO FORM:

JAIME L FLORES

CITY ATTORNEY

BY:________________________

ALLAN W. McGRAW

ASSISTANT CITY ATTORNEY