Item Coversheet

CITY OF HOUSTON - CITY COUNCIL

Meeting Date: 10/18/2022
District D
Item Creation Date: 6/16/2022

25CF108 Fourth Amendment to Lease Agreement at 6201 Bonhomme Street for Houston Health Department

Agenda Item#: 22.


 
                               
Summary:

ORDINANCE approving fourth amendment to Lease Agreement between 6201 BONHOMME, L.P., as Landlord, and the City of Houston, Texas, as Tenant, for space located at 6201 Bonhomme Road, Houston, Harris County, Texas, for use by the City’s Health Department’s Women, Infants, and Children (WIC) Nutrition Program - $1,694,073.96 - Grant Fund - DISTRICT J - POLLARD

Background:

RECOMMENDATION:    Approve and authorize Fourth Amendment to Lease Agreement between 6201 BONHOMME, L.P (Landlord) and City of Houston (Tenant) for the lease space at 6201 Bonhomme Street for the Dental Clinic, Specialty Clinic (HIV/STD), Women, Infants and Children (WIC) Nutrition Program, and Disease Intervention Specialists (DIS) Program of the Houston Health Department (HHD).

 

SPECIFIC EXPLANATION: The General Services Department recommends approval of a Fourth Amendment to Lease Agreement with 6201 BONHOMME, L.P (Landlord) for 11,258 square feet of expansion space on the second floor, 17,700 square feet on the third floor, and 2,519 square feet on the fourth floor, totaling 31,477 rentable square feet at 6201 Bonhomme Street for HHD. HHD has operated various health programs out of this leased space since 2007.

 

The proposed Fourth Amendment will provide for tenant improvements at the Landlord’s expense. The Landlord will acquire and install new furniture and the City will reimburse the Landlord for the cost of the furniture. All other terms and conditions of the amended lease remain the same.

 

The rent, including operating expenses and furniture amortization due each month during the lease term under the Fourth Amendment are as follows for the second-floor expanded lease space only:

 

Rent Schedule

From

To

Months

$/SF-YR

Monthly Rent

Annual

Monthly Furniture Cost

Annual

Annual TOTAL

Commencement Date

Month 12

12

$17.25

$16,183.38

$194,200.56

$8,820.23

$105,842.76

$300,043.32

Month 13

Month 24

12

$17.75

$16,652.46

$199,829.52

$8,820.23

$105,842.76

$305,672.26

Month 25

Month 36

12

$18.25

$17,121.54

$205,458.48

$8,820.23

$105,842.76

$311,301.26

Month 37

Month 48

12

$18.75

$17,590.63

$211,087.56

$8,820.23

$105,842.76

$316,930.26

Month 49

Month 60

12

$19.25

$18,059.71

$216,716.52

$8,820.23

$105,842.76

$322,559.26

Total

 

60

 

 

 

 

 

$1,556,506.36

 

Property Location:  6201 Bonhomme Street,  Houston  TX  77036

 

FUNDING SUMMARY:

$    150,021.66   Rent and Furniture for 6 months FY23

$ 1,406,484.70   Rent and Furniture for out-going years

$      71,983.10   One-time Security FY23

$      34,838.10   One-time IT equipment FY23

$      30,746.40   One-time IT FY23

$ 1,694,073.96   TOTAL   

 

 

FISCAL NOTE:  No fiscal note is required on grant items.

 

Estimated Spending Authority

Department

FY 2023

Out Year

Total

Houston Health Dept.

$ 150,021.66

$ 1,406,484.70

$ 1,556,506.36

One Time Security & IT

$ 137,567.60

 

$    137,567.60

Total

$ 287,589.26

$ 1,406,484.70

$ 1,694,073.96

 

DIRECTOR’S SIGNATURE/DATE:

 

 

____________________________

C. J. Messiah, Jr.

General Services Department

 

 

____________________________

Stephen L. Williams, M. Ed., M.P.A.

Houston Health Department

Prior Council Action:

Ordinance No. 2007-495; April 18, 2007

Ordinance No. 2014-367; April 30, 2014

Ordinance No. 2018-890; November 7, 2018

Ordinance No. 2021-1003; December 1, 2021

Amount and Source of Funding:

 

$1,556,506.36  Federal State Local – Pass Through Fund (5030)

$   137,567.60  Federal Government Grant Funded (5000)

$1,694,073.96  Total

Contact Information:

Enid M. Howard, Council Liaison                            

General Services Department

Phone:  832.393.8023