ORDINANCE approving and authorizing first amendment to Lease Agreement between ORANGESTONE MCKINNEY, LLC, as Landlord, and City of Houston, Texas, as Tenant, for property located at 2020 McKinney, Houston, Harris County, Texas, for use by the Parking Management Division of the Administration and Regulatory Affairs Department - 1 Year with a one-year option - $277,631.00 - ParkHouston Special Revenue Fund - DISTRICT I - GALLEGOS

RECOMMENDATION:  Approve and authorize a First Amendment to Lease Agreement between OrangeStone McKinney, LLC, as successor in interest to Levan Properties, L.P., (Landlord) and the City of Houston (Tenant) at 2020 McKinney Street, Houston, Texas, for the Parking Management Division of the Administration and Regulatory Affairs Department.

SPECIFIC EXPLANATION:  The General Services Department recommends approval of a First Amendment to Lease Agreement with OrangeStone McKinney, LLC for approximately 11,411 square feet of office space and all surface parking at 2020 McKinney Street for the Parking Management Division. Parking Management uses the lease space for Administration and Customer Service, Parking Compliance, Parking Programs, and Meter Operations Divisions responsible for regulating on-street parking.

The original Lease Agreement provides for a ten-year base term, with an option to renew the lease up to ten years at the current market rate. The lease commenced on March 9, 2011 and will terminate on March 8, 2021. The leased property will soon be acquired by the Texas Department of Transportation; therefore, the parties desire to amend the lease to extend the base term for an additional twelve-month period with one renewal term of twelve months.  The extended base term will expire on March 8, 2022. The monthly payment shall remain the same at $19,969.25 ($239,631.00 per annum) plus taxes and insurance estimated at $38,000, totaling $277,631.00 per annum. The rental rate during the renewal term shall be equal to the rental rate for the extended base term.    

All other terms and conditions of the original lease remain the same.

Estimated Spending Authority:

FISCAL NOTE: Funding for this item is included in the FY2021 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.

DIRECTOR’S SIGNATURE/DATE:

____________________________

C. J. Messiah, Jr.

General Services Department

______________________________

Tina Paez

Administration and Regulatory Affairs

Ordinance No. 2010-0734; September 22, 2010

$277,631.00

ParkHouston Special Revenue Fund

Fund 8700

FUNDING SUMMARY:

$  79,877.00 - 3/9/21-4/8/21; 4/9/21-5/8/21; 5/9/21-6/8/21; 6/9/21-7/8/21; 4 months FY21 at $19,969.25

$159,754.00  - Out-going year

$239,631.00 Total Rent

$  38,000.00 One-time (estimated taxes and insurance)

$277,631.00 TOTAL 

Calvin Curtis

Phone:  832.393.8024