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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 8/1/2017
District B
Item Creation Date: 7/5/2017
25CF39 HPD Psych Services at 12941 N Fwy
Agenda Item#: 16.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing first amendment to lease agreement between NORTH HOUSTON, L.P., as landlord, and the City of Houston, Texas, as tenant, for 5,293 square feet of leased space at 12941 North Freeway, Suite 635, Houston, Harris County, Texas, for the Psychological Services Division of the Houston Police Department - DISTRICT B - DAVIS |
| | | | | | | | Background:
SPECIFIC EXPLANATION: The General Services Department recommends approval of a First Amendment to Lease Agreement between North Houston, LP (Landlord) and the City of Houston (Tenant) for approximately 5,293 square feet of lease space at 12941 North Freeway for the Psychological Services Division of the Houston Police Department (HPD). HPD fully utilizes this space for general office purposes. The space is occupied by seven doctors and two administrative staff. The Psychological Services Division is responsible for psychological services within HPD. Due to the sensitivity of these services, HPD determined that this function should be isolated from the City and other HPD functions and services. City owned space is not available for the Division. Other third party lease options were considered, however, the Division prefers continued occupancy at this location.
The current lease term expires on November 30, 2017. The proposed First Amendment provides for a sixty month term with one five-year renewal option at the then prevailing market rate. The new lease term will commence on December 1, 2017 and expire on November 30, 2022. Rent will begin at $18.25/SF/YR and end at $20.25/SF/YR which is lower than today’s $20.50/SF/YR rate. This is a full service lease, covering all operating expenses, taxes, and insurance.
The total monthly rental breakdown is as follows:
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From
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To
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Annual Rate PSF
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Months
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Monthly Rental
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Annual Rental
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12/1/2017
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11/30/2018
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$18.25
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1-12
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$8,049.77
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$96,597.25
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12/1/2018
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11/30/2019
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$18.75
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13-24
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$8,270.31
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$99,243.75
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12/1/2019
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11/30/2020
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$19.25
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25-36
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$8,490.85
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$101,890.25
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12/1/2020
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11/30/2021
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$19.75
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37-48
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$8,711.40
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$104,536.75
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12/1/2021
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11/30/2022
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$20.25
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49-60
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$8,931.94
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$107,183.25
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$509,451.25
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The Landlord will install new carpet, repaint the leased premises, and provide two new reserved parking spaces. All other terms and conditions of the original lease remain the same.
OPERATING BUDGET FISCAL NOTE: Funding for this item is included in the FY 2018 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policy Ordinance No. 2014-1078.
CJM:RAV:JLN:CF:cf
xc: Marta Crinejo, Anna Russell, Jacquelyn L. Nisby, Larry Jaskolka
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| | | | | | | | Prior Council Action:
Ordinance No. 2012-776, August 29, 2012.
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| | | | | | | | Amount of Funding:
General Fund (1000):
$ 56,348.39 (7 months) FY18
$453,102.86 Out-going years
$509,451.25
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| | | | | | | | Contact Information:
Jacquelyn L. Nisby Phone: 832-393-8023
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