COUNCIL COMMUNICATION

DATE:

       

9-16-02

SUBJECT:  FINAL READING OF ORDINANCE NO. 2002-O-241

Authorizing the City Manager to execute a lease with Comision Mexico-Americana Para La Erradicacion Del Gusano Barrenador (U.S.D.A.) for approximately 19,765 square feet constituting Building No. 1308 located at 4305 Maher Avenue at the Laredo International Airport. Lease term is for five (5) years commencing on June 1, 2002 and ending on May 31, 2007.  Monthly rent shall be $6,901.00 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 September 3, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed.

 

BACKGROUND: 

 

Comision Mexico-Americana has occupied several buildings within the Laredo International Airport since 1977 and has remained a tenant in good standing.  Lessee has occupied this particular building since 1992 and wishes to continue occupying the premises.  The premises are used as the administrative and logistical headquarters for the U.S.D.A. Screwworm Eradication Program. 

 

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

 

Building No. 1308, consisting of approximately 19,765 square feet, was constructed in 1966 and was used by the U. S. Air Force as a general-purpose aircraft shop (metal frame and exterior).

 

 

 

FINANCIAL IMPACT:               Building Rent Revenues

                                                        Account No. 242-0000-361-1060

                                                        Previous Rent:  $5,431.55 ($0.2748/S.F.)

                                                      *Proposed FMV Rent: $6,901.00 ($0.3491/S.F.) x 12 Months=$82,812.00

                                                        Percentage Increase:  27.05%

                                                        

*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 Comision Mexico-Americana Para La Erradicacion Del Gusano Barrenador.

 

 

 

 

 

 

ORDINANCE NO. 2002-O-241

 

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH COMISION MEXICO-AMERICANA PARA LA ERRADICACION DEL GUSANO BARRENADOR (U.S.D.A.) FOR APPROXIMATELY 19,765 SQUARE FEET CONSTITUTING BUILDING NO. 1308 LOCATED AT 4305 MAHER AVENUE AT THE LAREDO INTERNATIONAL AIRPORT.

1.       LEASE TERM IS FOR FIVE (5) YEARS COMMENCING ON JUNE 1, 2002 AND ENDING ON MAY 31, 2007;

2.       MONTHLY RENT SHALL BE $6,901.00 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 Comision Mexico- Americana Para La Erradicacion Del Gusano Barrenador (U.S.D.A.), as LESSEE, for approximately 19,765 square feet constituting Building No. 1308 located at 4305 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 Comision Mexico Americana Para La Erradicacion Del Gusano Barrenador (U.S.D.A.) for approximately 19,765 square feet constituting Building No. 1308 located at 4305 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 COMISION MEXICO-AMERICANA PARA LA ERRADICACION DEL GUSANO BARRENADOR (U.S.D.A.) FOR BUILDING NO. 1308

 

 

            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