COUNCIL COMMUNICATION

DATE:

 

8-19-02

       

SUBJECT:  FINAL READING OF ORDINANCE NO. 2002-O-203

Authorizing the City Manager to execute a lease between the City of Laredo Airport Fund, as Lessor, and the City of Laredo Municipal Court, as Lessee, for approximately 184,956 square feet of land located on Lot No. 1, Block No. 6 at the Laredo International Airport. Lease term is for forty (40) years commencing on October 1, 2002 and ending on September 30, 2042. Monthly rent shall be $3,750.00 and will be adjusted annually according to changes in the Consumer Price Index and further adjusted by Fair Market Value Appraisal on the 10th, 20th, and 30th anniversaries; 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:

 

In an effort to continue to provide the citizens of Laredo with a higher degree of customer service, the City of Laredo proposes to construct a new municipal courthouse within Block 6 of the Laredo International Airport.

 

The new municipal courthouse will be located within a 184,956 square foot tract of land and will consist of approximately 18,000 sq. ft. of building area to include a parking lot and related facilities. Total cost of the project is $ 2.9 Million.  

 

 

FINANCIAL IMPACT:             Land Rent Revenues

                                                      Account No. 242-0000-361-2070

                                                    *Proposed Monthly FMV Rent:  $3,750.00

                                                                                          ($0.243 per year x 184,956 S.F.) = $45,000.00

                                                   

*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 City of Laredo Municipal Court.

 

 

 

 

 

ORDINANCE NO. 2002-O-203

 

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE BETWEEN THE CITY OF LAREDO AIRPORT FUND, AS LESSOR, AND THE CITY OF LAREDO MUNICIPAL COURT, AS LESSEE, FOR APPROXIMATELY 184,956 SQUARE FEET OF LAND LOCATED ON LOT NO. 1, BLOCK NO. 6 AT THE LAREDO INTERNATIONAL AIRPORT;

1.             LEASE TERM IS FOR FORTY (40) YEARS COMMENCING ON OCTOBER 1, 2002 AND ENDING ON SEPTEMBER 30, 2042;

2.             MONTHLY RENT SHALL BE $3,750.00 AND WILL BE ADJUSTED ANNUALLY ACCORDING TO CHANGES IN THE CONSUMER PRICE INDEX AND FURTHER ADJUSTED BY FAIR MARKET VALUE APPRAISAL ON THE 10TH, 20TH, AND 30TH ANNIVERSARIES; PROVIDING FOR AN EFFECTIVE DATE.

 

 

            WHEREAS, the Airport Director recommends that the City Council approve the proposed lease between the City of Laredo Airport Fund, as LESSOR, and the City of Laredo Municipal Court, as LESSEE, for approximately 184,956 square feet of land located on Lot No. 1, Block No. 6 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 between the City of Laredo Airport Fund, as Lessor, and the City of Laredo Municipal Court, as Lessee, for approximately 184,956 square feet of land located on Lot No. 1, Block No. 6 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 AIRPORT FUND AND CITY OF LAREDO MUNICIPAL COURT (184,956 SQUARE FEET OF LAND)

 

            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