COUNCIL COMMUNICATION

DATE:

 

8-19-02

       

SUBJECT:  FINAL READING OF ORDINANCE NO.  2002-O-197

Authorizing the City Manager to execute a lease with Border Sporting Goods, Inc., for approximately 6,583 square feet constituting Building No. 190 located at 5207 Maher Avenue at the Laredo International Airport.  Lease term is for five (5) years commencing on July 1, 2002 and ending on June 30, 2007.  Monthly rent shall be $2,107.00 and will be adjusted annually 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 August 5, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

 

BACKGROUND:

 

Border Sporting Goods has occupied several buildings within the Laredo International Airport since 1983 and has remained a tenant in good standing.  Lessee has occupied this particular building since 1992 and wishes to continue occupying the premises.

 

In addition to the monthly rental, Lessee is responsible for all structural and non-structural building components, maintenance, as well as public liability and property damage insurance in the amounts of $500,000 and $100,000, respectively, naming the City of Laredo as additional insured.

 

Building No. 190 consisting of approximately 6,583 square feet was constructed in 1966 by the U. S. Air Force and used to clean and fold parachutes

 

 

 

 

 

 

FINANCIAL IMPACT:               Building Rent Revenues

                                                        Account No. 242-0000-361-1060

                                                        Previous Rent:  $1,318.57 ($0.20 /S.F.)

                                                      *Proposed FMV Rent:  $2,107.00 ($0.32/S.F.) x 12 Months = $25,284.00

                                                        Percentage Increase:  60%

 

*Proposed rent is based on Fair Market Rent Analysis.

 

COMMITTEE RECOMMENDATION:  The Airport Advisory Committee recommends approval.

STAFF RECOMMENDATION:  That the City Manager execute lease with Border Sporting Goods.

 

 

 

 

 

 

ORDINANCE NO. 2002-O-197

 

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH BORDER SPORTING GOODS, INC., FOR APPROXIMATELY 6,583 SQUARE FEET CONSTITUTING BUILDING NO. 190 LOCATED AT 5207 MAHER AVENUE AT THE LAREDO INTERNATIONAL AIRPORT;

1.                LEASE TERM IS FOR FIVE (5) YEARS COMMENCING ON JULY 1, 2002 AND ENDING ON JUNE 30, 2007;

2.                MONTHLY RENT SHALL BE $2,107.00 AND WILL BE ADJUSTED ANNUALLY 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 Border Sporting Goods, Inc., as LESSEE, for approximately 6,583 square feet constituting Building No. 190 located at 5207 Maher Avenue 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 Border Sporting Goods, Inc., for approximately 6,583 square feet constituting Building No. 190 located at 5207 Maher Avenue 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 BORDER SPORTING GOODS, INC. (BUILDING NO. 190)

 

 

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