SUBJECT: An Ordinance approving and authorizing a Ground Lease and Purchase Option Agreement between the City of Houston and Houston Police Officers’ Pension System and allocating $79,000,000.00 in funds for the lease with the option to purchase ± 4.7 acres of land, together with all improvements thereon. Parcels QY25-003 and QY25-004
RECOMMENDATION: An Ordinance approving and authorizing a Ground Lease and Purchase Option Agreement between the City of Houston and Houston Police Officers’ Pension System and allocating $79,000,000.00 in funds for the lease with the option to purchase ± 4.7 acres of land, together with all improvements thereon.
SPECIFIC EXPLANATION: The City of Houston, through the Houston Public Works – Combined Utility System (“CUS”), seeks to lease and have the option to purchase a building located at 1600 Smith Street, Houston, TX 77002 to accommodate the CUS workforce due to deteriorating conditions at its current headquarters located at 611 Walker, Houston, Texas 77002 along with creating an opportunity to consolidate locations and offer tenancy options for other city departments. This will provide a safer work environment for occupants along with decreasing maintenance costs incurred by maintaining an ageing building. The current location was constructed in 1968 and is currently in the inventory of CUS. The proposed ordinance authorizes the Ground Lease and Purchase Option Agreement related to ± 4.7 acres of land, together with all improvements thereon.
Therefore, it is recommended that City Council adopt an Ordinance approving and authorizing a Ground Lease and Purchase Option Agreement between the City of Houston and Houston Police Officers’ Pension System and authorizing the allocation of $79,000,000.00 for ± 4.7 acres of land, together with all improvements thereon
FISCAL NOTE:
Funding for this item is included in the FY26 Adopted Budget. Therefore, no Fiscal Note is required as stated in the Financial Policies.
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Randall V. Macchi, JD
Director, Houston Public Works
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Estimate Spending Authority
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Department
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Current FY
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Out Year
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Total
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Combined Utility System General Purpose Fund
Fund 8305
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$5,000,000.00
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$74,000000.00
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$79,000,000.00
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