The Administration and Regulatory Affairs Department recommends approval of an ordinance to increase the spending authority from $2,211,183.56 to a maximum contract amount of $2,663,759.99 for Contract No 4600010955 between OrangeStone Kinney, LLC (as successor in interest to Levan Properties, LP), landlord, and the City of Houston, as tenant, for the lease of certain property located at 2020 McKinney, Houston, Texas which is being used by the Parking Management Division of the Administration and Regulatory Affairs Department.
This lease was approved and authorized by City Council on September 22, 2010, by Ordinance No. 2010-0734. The initial allocation for this ten-year lease is $2,211,183.56. Expenditures through December 2019 are projected to be $2,191,542.52. The initial allocation will be exhausted earlier than anticipated because the initial allocation was only for 10 years of lease payments, and did not include estimates for taxes or insurance, which are required under the lease. All premiums and taxes have been paid timely.
The requested increase in spending authority from $2,211,183.56 to a maximum contract amount of $2,663,759.99 is projected to be sufficient for lease payments, taxes, and insurance through the remainder of the lease term, which expires on March 8, 2021. The lease terms and conditions shall remain as previously approved by City Council.
$ 176,948.34 FY2020; $ 275,628.09 Out Years
FISCAL NOTE:
Funding for this item is included in the FY2020 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
Departmental Approval Authority:
__________________________ _____________________________
Tina Paez, Director Other Departmental Authorization
Administration & Regulatory
Affairs Department