RECOMMENDATION: Approve and authorize First Amendment to Lease Agreement between 10039 Bissonnet, L.P., Landlord, and City of Houston, Tenant, for the lease space at 10039 Bissonnet, Houston, Harris County, Texas 77036 for the Women, Infants and Children Program of the Houston Health Department (HHD).
SPECIFIC EXPLANATION: The General Services Department recommends approval of a First Amendment to the Lease Agreement with 10039 Bissonnet, L.P, Landlord, for 3,880 square feet of office space, consisting of 2,216 square feet located in Suite 120 and 1,664 square feet located in Suite 115 at the beginning monthly rental of $4,850.00 ($15/SF) for HHD to operate a Women, Infants and Children (WIC) Nutrition Program.
Currently, HHD operates out of 2,562 square feet of lease space; 2,216 square feet located in Suite 120 and 346 square feet located in Suite 105) at a monthly rental of $3,202.60 ($15/RSF). HHD will improve client services and increase capacity by moving from Suite 105 into Suite 115, The Landlord will provide the Tenant with a tenant improvement allowance of up to $8,610.50 according to the plans and specifications agreed upon. The Tenant will pay the Landlord up front for all tenant improvements that exceed the Landlord allowance, at an estimated cost of $84,379.24 or $21.75 per rentable square foot or the Tenant may exercise an option for an additional allowance up to $20.00 per rentable square foot to be included in the rental rate over the term at ten percent interest.
The initial Lease term is May 1, 2020, through June 30, 2030. The Amended Lease term will be September 1, 2024, through June 30, 2030.
The Landlord will provide furniture up to $50,000.00, to be reimbursed by the Tenant. If there is any excess left in the $8,610.50 tenant improvement allowance paid by the Landlord, it shall be applied to reduce the amount owed for the furniture. The Tenant may reimburse the furniture cost in full at any time without penalty or may reimburse monthly. If the Tenant reimburses monthly, the total rent and furniture breakdown is as follows:
The total rent breakdown is as follows:
|
From
|
To
|
Months
|
$/SF-YR
|
Monthly
|
Cumulative
|
|
9/1/2024
|
6/30/2025
|
10
|
$ 15.00
|
$ 4,850.00
|
$ 48,500.00
|
|
7/1/2025
|
6/30/2026
|
12
|
$ 15.50
|
$ 5,011.67
|
$ 60,140.04
|
|
7/1/2026
|
6/30/2027
|
12
|
$ 16.00
|
$ 5,173.33
|
$ 62,079.96
|
|
7/1/2027
|
6/30/2028
|
12
|
$ 16.50
|
$ 5,335.00
|
$ 64,020.00
|
|
7/1/2028
|
6/30/2029
|
12
|
$ 17.00
|
$ 5,496.67
|
$ 65,960.04
|
|
7/1/2029
|
6/30/2030
|
12
|
$ 17.50
|
$ 5,658.33
|
$ 67,899.96
|
The Landlord is responsible for maintenance, taxes, insurance, and the operating expenses of the leased premises, including utilities, janitorial, and security services.
PROPERTY LOCATION: 10039 Bissonnet, Houston, Harris County, Texas 77036.
FISCAL NOTE: No fiscal note is required on grant items.
DIRECTOR’S SIGNATURE/DATE:
____________________________
C. J. Messiah, Jr.
General Services Department
__________________________
Stephen L. Williams, M. Ed., M.P.A.
Houston Health Department
FUNDING SUMMARY:
$ 48,500.00 (rent 10 months FY 2025)
$320,100.00 (rent out years)
$ 50,000.00 (one-time furniture FY2025)
$ 84,379.24 (one-time tenant improvement including 20% contingency FY25)
$502,979.24 Total Rent, Furniture, and Tenant Improvements
ESTIMATED SPENDING AUTHORITY
|
Department
|
FY2025
|
Out-Years
|
Total
|
|
Houston Health Department
|
|
|
|
|
Rent
|
$48,500.00
|
$320,100.00
|
$368,600.00
|
|
Furniture
|
$50,000.00
|
|
$50,000.00
|
|
Tenant Improvements
|
$84,379.24
|
|
$84,379.24
|
|
TOTAL
|
$182,879.24
|
$320,100.00
|
$502,979.24
|