RECOMMENDATION: Approve and authorize a Third Amendment to the Lease Agreement between AMG The Oaks Apartments, LLC, Landlord, and the City of Houston, Tenant, for 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 Third Amendment to the Lease Agreement with AMG The Oaks Apartments, LLC for approximately 15,004 square feet of fully furnished office space on the entire third floor and 116 parking spaces at 100 Glenborough Drive for the North Belt Division of the Houston Police Department (HPD). The Lease Agreement is funded through an Interlocal Agreement with the North Houston District (NHD), previously known as the Greater Greenspoint Management District, which will be considered in a separate City Council action.
On November 29, 2017, by Ordinance 2017-922, City Council approved a Lease Agreement with AMG The Oaks Apartment, LLC for space at 100 Glenborough Drive for HPD. The lease provided a three-year term with two one-year renewal options, which the City exercised and provided a monthly rental rate of $16,000.00. The lease commenced December 1, 2017.
On August 31, 2022, by Ordinance 2022-0673, City Council approved a First Amendment to the Interlocal Agreement which provided for a nine-month term that commenced December 5, 2022, and expired September 4, 2023, with an option to extend the lease until December 4, 2023, which the City exercised. The First Amendment provided a monthly rental rate of $17,000.00.
On October 25, 2023, by Ordinance 2023-884, City Council approved a Second Amendment to the Lease Agreement which provided a nine-month lease that commenced December 5, 2023, and expired September 4, 2024, with an option to extend the lease until December 4, 2024. The Second Amendment provides a monthly rental rate of $18,360.00
This Third Amendment to the Lease Agreement will extend the Term of the Agreement from December 5, 2024, through December 24, 2026, with an optional twelve (12) month extension. This Amendment provides a monthly rental rate of $19,734.81 per month during months 1 through 12 and $20,134.76 per month for months 13 through the expiration of the lease and for the renewal option, if exercised.
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 FY2025.
PROPERTY LOCATION: 100 Glenborough Drive, Houston, TX 77060.
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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J. Noe Diaz
Houston Police Department