ORDINANCE approving and authorizing first amendment to Lease Agreement between KITCHCO REALTY, LTD., METCO REALTY, LTD. and ACR-S HOLDINGS I, LTD., as Landlords, and the City of Houston, Texas, as Tenant, for 0.996 acres of leased space at 1010 Washington Avenue, Houston, Harris County, Texas, at a monthly rental of $17,135.16, for parking for the Houston Permitting Center - DISTRICT H - GONZALEZ

First Amendment to the Parking Lease Agreement Between Kitchco Realty, Ltd., Metco Realty, Ltd. and ACR-S Holdings I, Ltd (jointly as Landlord) and the City of Houston (Tenant) at 1010 Washington Avenue, Houston, Texas.

RECOMMENDATION:  Approve an ordinance authorizing First Amendment to the Parking Lease Agreement between Kitchco Realty, Ltd., Metco Realty, Ltd. and ACR-S Holdings I, Ltd. (jointly as Landlord) and the City of Houston (Tenant) at 1010 Washington Avenue and allocate funds.

The Public Works and Engineering Department recommends approval of the First Amendment to the Parking Lease Agreement between Kitchco Realty, Ltd., Metco Realty, Ltd. And ACR-s Holdings I, Ltd (jointly as Landlord) and the City of Houston (Tenant). On December 11, 2013, by Ordinance Number 2013-1125, City Council approved a parking lease agreement between Kitchco Realty, Ltd., Metco Realty, Ltd., and ACR-S Holdings I, Ltd. (jointly as Landlord) The agreement leased 109  parking spaces to the City at 1010 Washington Avenue, for $160,000.00 annually or $13,333.33 each month for 12 months. .  Annual rent increases of 3% take effect at the beginning of each one-year renewal period for the duration of the four one-year terms in the original agreement.

This amendment will increase the number of parking spaces leased from 109 to 136. Additionally the annual base rent will increase from $160,000.00 to $205,621.97 with an annual increase of 3%, effective at the beginning of each automatic renewal period for the duration of the remaining three one-year terms of the amended agreement. The HPC is a fully functioning service center that hosts at least 1,000 visitors daily, the additional parking capacity will ensure adequate spaces are available for customers and visitors throughout the business day.

The Department of Public Works and Engineering recommends that City Council approve the First Amendment to the Parking Lease Agreement located at 1010 Washington Avenue.  

$205,621.97 – Building Inspection Fund (2301)

(Original allocation of $160,000.00 Fund 2301 Building Inspection Fund)

Mark McAvoy

(832) 394-9400