RECOMMENDATION: Approve and authorize a First Amendment to Lease Agreement between Ardmore Professional Center, L.L.C. (Landlord) and City of Houston (Tenant) to remove the West Parking Lot from the lease and amend the amount of rent for years 9 and 10, for the Department of Neighborhoods (DON) and Houston Police Department (HPD) Major Offenders Division’s Environmental Investigation Unit.
SPECIFIC EXPLANATION: The General Services Department recommends approval of a First Amendment to Lease Agreement between Ardmore Professional Center, L.L.C. (Landlord) and City of Houston (Tenant) to remove the West Parking Lot from the lease, located west of the office building across Ardmore Street; and reduce the monthly rental amount for years 9 and 10 of the lease.
DON and HPD have utilized this property since 2009 to house inspectors and hearing officials who are responsible for enforcing various City of Houston Codes, including but not limited to open and dangerous buildings, weeded lots, junk motor vehicles, nuisances on private property, housing and environmental violations.
The original lease commenced on November 16, 2009, for a base term of ten-years with two additional five-year renewal options. The initial lease term will expire on November 15, 2019. The current monthly rental for Years 8, 9 and 10 is $70,619.64, $72,738.23, and $74,920.37, respectively. The proposed First Amendment provides for a monthly rental at the 2017 monthly rate of $70,619.64, for years 9 and 10. This represents a cost savings for the City of approximately $70,000, or a 5.7% reduction in rent for the remaining lease term.
All other terms and conditions of the amended Lease Agreement remain the same.
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department
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Art Acevedo.
Chief
Houston Police Department
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TaKasha L. Francis
Department of Neighborhoods