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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 9/18/2018
District I
Item Creation Date: 8/23/2018
HAS - Lease with 1859-Historic Hotels, Ltd. at HOU
Agenda Item#: 19.
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| | | | | | | | Summary:
ORDINANCE approving Lease Agreement for Parking Area and Greenbelt between the City of Houston, Texas, Landlord, and 1859-HISTORIC HOTELS, LTD, Tenant, for certain premises at William P. Hobby Airport - DISTRICT I - GALLEGOS |
| | | | | | | | Background:
RECOMMENDATION:
Enact an ordinance approving a lease agreement between the City of Houston and 1859-Historic Hotels, Ltd., for certain premises at William P. Hobby Airport (HOU).
SPECIFIC EXPLANATION:
1859-Historic Hotels, Ltd., (Lessee), has requested to lease a parking area and greenbelt located at 8181 Airport Blvd., William P. Hobby Airport (HOU).
The pertinent terms and conditions of the lease agreement are as follows:
1. Premises: Approximately 61,325 square feet of land improved with a parking area at 8181 Airport Blvd., HOU.
2. Term: The term is for ten (10) years from the date of countersignature (Effective Date), unless sooner terminated in accordance with the lease.
3. Use: Lessee shall use the leased premises as a parking area and greenbelt for its adjacent hotel property.
4. Rent: $52,500 annually, escalated 15% after initial five years.
5. Performance Security: Lessee shall provide a performance bond or an irrevocable letter of credit in the amount of $26,250, which represents six month’s rent.
6. Maintenance
and Utilities: Lessee shall assume the entire responsibility, cost and expense for all repair and maintenance of the leased premises.
7. Indemnification and Insurance: Lessee shall indemnify and hold the City harmless and shall provide the required insurance in the limits as stated in the lease.
8. Environmental
and Airport Rules: Lessee shall comply with all federal, state and local environmental laws and all airport policies and procedures.
9. Other: Lessee agrees to comply with all rules and regulations adopted by the airport and/or TSA and/or the FAA, and to comply with all federal, state and local statutes, ordinances, regulations and policies.
Fiscal Note:
Funding for this item was included in the FY2019 Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
Director's Signature:
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Mario C. Diaz
Houston Airport System
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| | | | | | | | Amount and Source of Funding:
| Estimated Fiscal Operation Impact (Projected Revenue) |
| Fund Name |
Current Fiscal Year |
Out Years |
Total |
| HAS Revenue (8001) |
$39,375.00 |
$525,000.00 |
$564,375.00 |
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| | | | | | | | Contact Information:
Todd Curry 281/233-1896
Ian Wadsworth 281/233-1682 |
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