COUNCIL COMMUNICATION

DATE: 12-2-02	SUBJECT: FINAL READING OF ORDINANCE NO. 2002-O-309 Authorizing the City Manager to execute a lease amendment to the lease agreement between the City of Laredo, as Lessor, and Webb County, as Lessee, authorized by Ordinance No. 2001-0-176 dated August 20, 2001 in order to delete Building No. 1229 effective August 1, 2002. Said amendment will amend, specifically, Section 1.01 titled “Lease Area” deleting Building No. 1229, therefore decreasing the square footage from 4,378 to 2,378. Amend Section 1.04 titled “Rent Obligation” decreasing the monthly rent obligation from $1,825.73 to $1,100.00. 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 November 18, 2002, Ordinance was introduced by City Council, and Staff was instructed to proceed. BACKGROUND: Webb County has been a tenant in good standing since 1982 providing headstart services to the community. After an inspection of the premises by Airport Personnel and City of Laredo Building Department, it was determined that Building No. 1229 is no longer usable and is scheduled for demolition.
FINANCIAL IMPACT: Building Rent Revenues Account No. 242-0000-361-1060 Previous Rent: $1,825.73 ($0.42/S.F.) *Proposed FMV Rent: $1,100.00 ($0.46/S.F.) x 12 Mos. = $13,200.00 Percentage Decrease: 39.75% *Proposed rent is based on Fair Market Rent Analysis.
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 with Webb County.

ORDINANCE NO. 2002-O-309

AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AMENDMENT TO THE LEASE AGREEMENT

BETWEEN THE CITY OF LAREDO, AS LESSOR, AND WEBB COUNTY, AS LESSEE, AUTHORIZED BY ORDINANCE NO. 2001-0-176 DATED AUGUST 20, 2001 IN ORDER TO DELETE BUILDING NO. 1229 EFFECTIVE AUGUST 1, 2002. SAID AMENDMENT WILL AMEND, SPECIFICALLY, SECTION 1.01 TITLED “LEASE AREA” DELETING BUILDING NO. 1229, THEREFORE DECREASING THE SQUARE FOOTAGE FROM 4,378 TO 2,378. AMEND SECTION 1.04 TITLED “RENT OBLIGATION” DECREASING THE MONTHLY RENT OBLIGATION FROM $1,825.73 TO $1,100.00. 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 to the lease agreement between the City of Laredo, as LESSOR, and Webb County, 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 August 20, 2001, LESSOR and LESSEE entered into a Lease approved by Ordinance No. 2001-O-176 for approximately 1.0128 acres of land which includes Building Nos. 1228 and 1229 located at 4704 Naranjo Street at the Laredo International Airport.

WHEREAS, LESSOR and LESSEE wish to amend said Lease specifically Section 1.01 titled “Lease Area” in order to delete Building No. 1229, therefore decreasing the square footage from 4,378 to 2,378. Amend Section 1.04 titled “Rent Obligation” decreasing the monthly rent obligation from $1,825.73 to $1,100.00, effective August 1, 2002. All other terms and conditions remain unchanged and in effect.

WHEREAS, the Airport Advisory Committee finds that said lease amend is in the best interest of the Airport and recommends that the City Council approve the proposed lease amendment; 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 authorizing a lease amendment to the lease agreement between the City of Laredo, as Lessor, and Webb County, as Lessee, authorized by Ordinance No. 2001-0-176 dated August 20, 2001 in order to delete Building No. 1229 effective August 1, 2002. Said amendment will amend, specifically, Section 1.01 titled “Lease Area” deleting Building No. 1229, therefore decreasing the square footage from 4,378 to 2,378. Amend Section 1.04 titled “Rent Obligation” decreasing the monthly rent obligation from $1,825.73 to $1,100.00. All other terms and conditions remain unchanged and in effect. A copy of which lease amendment 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