ORDINANCE approving a lease agreement between the City of Houston, Texas, landlord, and ANVIL INTERNATIONAL, LLC, tenant, for aggregate properties comprising of approximately 21,864 sq. ft. of real property located beneath the Navigation Boulevard overpass at 6618 Navigation Boulevard, Houston, Harris County, Texas - DISTRICT I - GALLEGOS

The General Services Department recommends approval of a Lease Agreement for Parking with Anvil International, LLC, (Tenant), previously known as J.B. Smith Mfg. Co., LLC, for 21,864 square feet of vacant land located beneath the Navigation Blvd. overpass, between the east side of the railroad tracks and west of Terminal Street. Anvil has utilized the property for parking by its employees and visitors since 1982, but the lease expired July 31, 2017.

The proposed Parking Lease provides for an initial term of five years, with three five-year renewal options.  The annual market rental rate for the first year is $8,063.87 with 3% annual escalations thereafter, as described below. In the event the market rate exceeds the 3% escalation rate by more than 1%, the annual rental payment shall be the market rate.

         Year           Annual Payment

           1                    $8,063.87

           2                    $8,305.79

           3                    $8,554.96

           4                    $8,811.61

           5                    $9,075.96

The effective date of the Lease Agreement shall be the first day of the following month of the date of countersignature by the City Controller.

Jacquelyn L. Nisby, 

Phone: (832) 393-8023