RECOMMENDATION: Approve and authorize a Third Amendment to Lease Agreement between the City of Houston, landlord and the Fifth Ward Community Redevelopment Corporation, tenant, to recognize that the Bike Sharing Program Agreement has been discontinued.
SPECIFIC EXPLANATION: The General Services Department recommends approval of a Third Amendment to the Lease Agreement with Fifth Ward Community Redevelopment Corporation, for approximately 11,000 square feet of space at 3301, 3303 and 3305 Lyons Avenue, Houston, Harris County, Texas 77020, known as the Deluxe Theatre, to recognize that the Bike Sharing Program Agreement has been discontinued and that the tenant desires to re-acquire the exclusive use of the portion of the Leased Premises that was designated as a bicycle station under the Bike Share Program. The goal of the program was to provide equitable access to bike share, which fosters recreation, mobility, and personal wellness in Houston neighborhoods.
On October 28, 2020, by Ordinance 2020-921, City Council approved the original Lease Agreement which commenced November 2, 2020, and provides for an initial term of three years, with two consecutive three-year renewal options.
On May 5, 2021, by Ordinance 2021-356, City Council approved a First Amendment to the Lease Agreement which approved the Houston Bike Sharing Program to locate its public bicycle station on the Leased Premises.
On October 11, 2023, by Ordinance 2023-846, City Council approved a Second Amendment to the Lease Agreement which exercised the first three-year renewal option and increased the monthly rent.
Fifth Ward Community Redevelopment Corporation is permitted to offset its monthly rent by the value of the community services and neighborhood amenities which may include retail space that materially benefits the community. The City recognizes these services to be a legitimate public or municipal purpose that is in the best interest of the citizens of Houston. The City may terminate the Lease, without cause, at any time during the term, or with 60 days prior written notice, if Fifth Ward Community Redevelopment Corporation fails to utilize the leased premises to provide outreach to the community. All other terms, conditions, and provisions of the Lease remain unchanged and in full force and effect.
PROPERTY ADDRESS: 3301, 3303 and 3305 Lyons Ave., Houston, TX 77020
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