RECOMMENDATION: Approve and authorize a Lease Agreement between City of Houston (Landlord) and Coalition for the Homeless of Houston/Harris County (Tenant) at 2903 Jensen Drive, Houston, Texas, 77026, for the Housing and Community Development Department.
SPECIFIC EXPLANATION: The Director of the General Services Department recommends that City council approve an ordinance authorizing a lease agreement between the City of Houston (Landlord) and the Coalition for the Homeless of Houston/Harris County (Tenant) for 73,997 square feet of land and an approximately 30,000 square foot building located at 2903 Jensen Drive for the Housing and Community Development Department (HCD). The Tenant will oversee construction, operation, and maintenance of a Housing Navigation Center (the “Navigation Center”) to connect and rapidly house at-risk individuals experiencing homelessness into safe and stable, non-congregate, permanent housing throughout the region. Additionally, the Navigation Center will be operated when needed as a neighborhood emergency disaster shelter accommodating an additional 60 individuals from the surrounding community.
The proposed Lease Agreement will commence on the date the Tenant begins occupying the site to undertake Tenant’s improvements. The initial term ends on December 31, 2024 (approximately two years from the start of operations) and the Lease Agreement allows for the City, through the HCDD and GSD Directors, to approve up to three (3) renewal periods: two (2) three-year periods and one (1) four-year period.
The Coalition’s Scope of Services provided in the Lease Agreement holds a monetary value that exceeds the monetary grant to be provided by the City for construction of the Navigation Center and the market rate of the leased premises. The City recognizes the benefits the Tenant is providing in both capital improvements beyond construction grant, as well as on ongoing services and operations. As a result, the Tenant will have a one dollar ($1.00) annual rental rate.
The Tenant is responsible for tenant improvements, permits, maintenance, utilities, security services, and insurances. The full and complete fee simple title to the land, building, and improvements will remain with the City.
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department