RECOMMENDATION: Approve and authorize a Second Amendment to the Lease Agreement between AMG The Oaks Apartments, LLC (Landlord) and the City of Houston (Tenant) for the lease space at 100 Glenborough Drive, Houston, Harris County, Texas for the Houston Police Department.
SPECIFIC EXPLANATION: The General Services Department recommends approval of a Second Amendment to Lease Agreement with AMG The Oaks Apartments, LLC (Landlord) for approximately 15,004 square feet on the third floor at 100 Glenborough Drive for the North Belt Division of the Houston Police Department (HPD).
The Lease Agreement provides for the lease of approximately 15,004 square feet of fully furnished office space and 116 reserved parking spaces, at a monthly rental of $16,000.00. The Lease Agreement is funded through an Interlocal Agreement with the North Houston District (NHD), previously known as the Greater Greenspoint Management District, which was considered in a separate City Council action. The lease term was for three years with two one-year renewal options. The lease commencement date was December 4, 2017. Both renewal options were exercised and the current renewal period at a monthly rental of $17,000.00 terminates December 4, 2023.
The Second Amendment will provide for the Second Extended Term which will expire on September 4, 2024, with an additional Renewal Term which, if exercised, will extend the Lease term until December 4, 2024. Monthly rental will be $18,360.00.
The City may terminate the Lease Agreement for any reason or for no reason by providing 90 days’ written notice. Should the Interlocal Agreement terminate, the Lease will automatically terminate, and the monthly rental will no longer be made.
HPD will remain in the leased facility until the construction of the new North Belt Police Station on Gears Road, which is earmarked in the City’s Capital Improvement Plan in FY2024.
This is a full-service lease with no escalations or pass-through expenses.
FISCAL NOTE: There is no impact to the fiscal budget or no additional spending authority. Therefore, no Fiscal Note is required as stated in the Financial Policies
DIRECTOR’S SIGNATURE/DATE:
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C. J. Messiah, Jr.
General Services Department
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Troy Finner
Houston Police Department