RECOMMENDATION: Approve and authorize a Lease Agreement between BakerRipley, Landlord, and City of Houston, Tenant, for the lease space at 3000 Aldine Mail Route, Houston, Harris County, Texas 77039 for the Women, Infants and Children (WIC) Program of the Houston Health Department (HHD).
SPECIFIC EXPLANATION: The General Services Department (GSD) recommends approval of the Lease Agreement with BakerRipley for 2,239 square feet of leased space, of which 1,939 square feet is located on the first floor and 300 square feet located on the second floor. The beginning monthly rate is $4,375.38 ($23.45/SF) and increases 2.5% annually. The Agreement is for a five-year term with one five-year optional renewal option
On August 21, 2019, by Ordinance 2019-654, City Council approved and authorized a Lease Agreement with BakerRipley for 1,173 square feet of lease space at this location for HHD. The lease expired August 31, 2024 and is currently in holdover rate status at a monthly rental rate of $1,759.50 ($18.00/SF). This lease amount will remain unchanged until construction is completed. The Landlord will contribute up to $150,000.00 towards tenant improvements and the tenant will contribute $100,000.00 towards tenant improvements.
The lease term will be November 01, 2025, through September 30, 2030.
The total rent breakdown is as follows:
|
FY
|
From
|
To
|
Months
|
Cumulative
|
|
2026
|
11/01/2025
|
11/30/2025
|
1
|
$1,759.50
|
|
2026
|
12/1/2025
|
6/30/2026
|
7
|
$30,627.66
|
|
2027
|
7/1/2026
|
6/30/2027
|
12
|
$53,385.20
|
|
2028
|
7/1/2027
|
6/30/2028
|
12
|
$54,721.12
|
|
2029
|
7/1/2028
|
6/30/2029
|
12
|
$56,094.44
|
|
2030
|
7/1/2029
|
6/30/2030
|
12
|
$57,497.52
|
|
2031
|
7/1/2030
|
10/01/2030
|
4
|
$19,322.56
|
The Landlord is responsible for maintenance, taxes, insurance, and the operating expenses of the leased premises, including utilities, janitorial, and security services.
PROPERTY LOCATION: 3000 Aldine Mail Route, Houston, Texas 77039
Funding Summary:
$ 32,387.16 (8-Months’ Rent – FY2026)
$ 241,020.84 (Rent Out Years)
$ 26,698.65 (One-Time IT & Security Cost – FY2026)
$ 6,253.24 (One-Time Furniture Cost – FY2026)
$ 1,815.40 (One-Time Moving Cost – FY2026)
$ 132,600.00 (One-Time Tenant Improvement, including 30% Contingency - FY2026)
$ 440,775.29 (Total Rent, IT & Security, Moving, and Tenant Improvements)
FISCAL NOTE:
No fiscal note is required on grant items.
No significant Fiscal Operating impact is anticipated as a result of this project
Estimated Spending Authority:
|
Estimated Spending Authority
|
|
Department
|
FY2026
|
Out-Years
|
TOTAL
|
|
Houston Health Department
|
$ 199,754.45
|
$241,020.84
|
$ 440,775.29
|
|
Total
|
$ 199,754.45
|
$241,020.84
|
$ 440,775.29
|
DIRECTOR’S SIGNATURE/DATE:
____________________________
C. J. Messiah, Jr.
General Services Department
____________________________
Theresa Q. Tran Carapucci, MD, MBA, FACEP
Houston Health Department