RECOMMENDATION:
Enact an ordinance approving the execution of a Lease Agreement for Driveway Access at William P. Hobby Airport (“HOU”) with CFS 2907 Houston LLC (“CFS”), doing business as The Parking Spot 2.
SPECIFIC EXPLANATION:
On December 19, 2007, City Council approved Agreement No. 70732 with PCAA SP, LLC (“PCAA SP”), effective December 28, 2007, in which PCAA SP leased certain premises at William P. Hobby Airport (“HOU”) to be used as an access driveway for its adjacent automobile parking lot at 7601 Airport Blvd. On June 2, 2010, PCAA SP was acquired by CFS 2907 Houston LLC (“CFS”). The City and CFS now desire to renew the lease.
The pertinent terms and conditions of the Lease are as follows:
Premises: An approximately 3,362 square foot driveway access area and an approximately 33,987 square foot landscape buffer area, for a total Leased Premises area of 37,349 square feet.
Term: Term shall commence on December 28, 2017 and shall continue in effect until December 31, 2027. Either party may terminate for convenience with one year’s notice.
Use: During the term of this Lease, CFS shall have the right to use the Leased Premises only for landscape buffer and driveway access to (and egress from) The Parking Spot 2 site using the driveways and two existing curb cuts to and from Airport Boulevard.
CFS shall have the right to use and maintain CFS's one existing sign and sign-related utilities, if applicable, on the Leased Premises, solely for the purpose of identifying and advertising CFS's operation on The Parking Spot 2 site.
CFS is strictly prohibited from parking automobiles on the Leased Premises or constructing additional curb cuts and driveways on the Leased Premises without prior written consent of the Director, who shall adjust the rental rate and update the exhibits to reflect an updated driveway access area.
Rent: Rent payable to the City shall be as follows:
Lease Years Annual Rent
1 $3,208.78*
2-5 $3,174.00
6-10 $3,650.00
* In order to cover the prorated rent from the Effective Date through the remainder of 2017, CFS's rental payment for Year 1 includes the proration of four days and the annual rental rate.
Maintenance: As further consideration for this Lease, CFS shall maintain the Leased Premises by mowing and trimming the grass on a scheduled, regular basis to maintain the Leased Premises in a first class, clean and opening day fresh condition as a landscape buffer at the entrance of the airport, free and clear of any and all trash, debris and deferred maintenance throughout the term.
Utilities: CFS shall pay for all utilities or services, including hookups, which are furnished, provided or otherwise made available to CFS on the Leased Premises.
Director's Signature:
____________________________
Mario C. Diaz
Houston Airport System