COUNCIL COMMUNICATION

DATE: 8-19-02	SUBJECT: FINAL READING OF ORDINANCE NO. 2002-O-204 Authorizing the City Manager to execute a Lease Amendment to the Lease Agreement between the City of Laredo, as Lessor, and Laredo Candle Company, L.P., as Lessee, authorized by Ordinance No. 2002-0-118 dated June 3, 2002 for the purpose of extending the lease term for an additional ninety (90) days effective July 19, 2002. Said Amendment will amend, specifically, Section 1.02 titled “Term”, adding ninety (90) days commencing on July 19, 2002 and ending on October 18, 2002. Section 1.03 titled “Rental Obligation” is amended to reflect the rent obligation in the amount of $11,500.00 per month commencing on July 19, 2002 and ending on October 18, 2002. All other terms and conditions remain unchanged and in effect; 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: 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 it needs an additional 90-day period to complete said a/c installation and meet inventory demand. Increased demand for candles necessitates that Laredo Candle Company secure the additional storage area. 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 $ 34,500.00 for 90 days
COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.		STAFF RECOMMENDATION: That the City Manager be authorized to execute a lease amendment to the lease agreement between the Airport Fund, as Lessor, and Laredo Candle Company, as Lessee.

ORDINANCE NO. 2002-O-204

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AMENDMENT TO THE LEASE AGREEMENT BETWEEN THE CITY OF LAREDO, AS LESSOR, AND LAREDO CANDLE COMPANY, L.P., AS LESSEE, AUTHORIZED BY ORDINANCE NO. 2002-0-118 DATED JUNE 3, 2002 FOR THE PURPOSE OF EXTENDING THE LEASE TERM FOR AN ADDITIONAL NINETY (90) DAYS EFFECTIVE JULY 19, 2002. SAID AMENDMENT WILL AMEND, SPECIFICALLY, SECTION 1.02 TITLED “TERM”, ADDING NINETY (90) DAYS COMMENCING ON JULY 19, 2002 AND ENDING ON OCTOBER 18, 2002. SECTION 1.03

TITLED “RENTAL OBLIGATION” IS AMENDED TO REFLECT THE RENT OBLIGATION IN THE AMOUNT OF

$11,500.00 PER MONTH COMMENCING ON JULY 19, 2002 AND ENDING ON OCTOBER 18, 2002. ALL OTHER TERMS AND CONDITIONS REMAIN UNCHANGED AND IN EFFECT; PROVIDING FOR AN EFFECTIVE DATE.

WHEREAS, the Airport Director recommends that the City Council approve the proposed lease amendment between the City of Laredo, as LESSOR, and Laredo Candle Company, L. P., as LESSEE, 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, on June 3, 2002, LESSOR and LESSEE entered into a Lease approved by Ordinance No. 2002-O-118 for approximately 28,800 square feet constituting Building No. 1005 located at 4608 Daugherty Avenue at the Laredo International Airport.

WHEREAS, LESSOR and LESSEE wish to amend said Lease for the purpose extending the lease term for an additional ninety (90) days effective July 19, 2002. Said Amendment will amend, specifically, Section 1.02 titled “Term”, adding ninety (90) days commencing on July 19, 2002 and ending on October 18, 2002. Section 1.03 titled “Rent Obligation” is amended to reflect the rent obligation in the amount of $11,500 per month commencing on July 19, 2002 and ending on October 18, 2002. All other terms and conditions remain unchanged and in effect.

WHEREAS, the Airport Advisory Committee finds that said lease amendment is 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 amendment to the lease agreement between the City of Laredo, as Lessor, and Laredo Candle Company, L. P., as Lessee, authorized by Ordinance No. 2002-O-118 dated June 3, 2002, for the purpose of extending the lease term for an additional ninety (90) days effective July 19, 2002. Said Amendment will amend, specifically, Section 1.02 titled “Term”, adding ninety (90) days commencing on July 19, 2002 and ending on October 18, 2002. Section 1.03 titled “Rent Obligation” is amended to reflect the rent obligation in the amount of $11,500.00 per month commencing on July 19, 2002 and ending on October 18, 2002. All other terms and conditions remain unchanged and in effect. 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.

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