RECOMMENDATION:
Enact an ordinance approving and authorizing the execution of a Lease Agreement with the United States of America on behalf of U.S. Customs and Border Protection (CBP) for certain premises at William P. Hobby Airport (HOU).
SPECIFIC EXPLANATION:
On February 25, 2013, the City and Southwest Airlines entered into Airport Use and Lease Agreement No. 75187 for Southwest to lease certain premises and construct an international concourse, including a Federal Inspection Services (FIS) facility, at HOU. The FIS will be operated by the U.S. Customs and Border Protection (CBP), and it requires the City to provide operational space and equipment at no cost, which is the subject of this Lease.
Pursuant to this Lease, CBP will locate inspections personnel onsite and the FIS space will be constructed according to the CBP’s specifications. CBP will be responsible for installing its data and telecommunication equipment, for which it will be reimbursed as part of the project costs of the international concourse being constructed by Southwest Airlines. The City is obligated in the Lease to ensure CBP is reimbursed. The initial cost is estimated to be approximately $1.25 million. The City will be responsible for recurring and replacement charges in the future. Any funds expended by the City for CBP operations will be recovered through airline rates and charges.
The pertinent terms and conditions of the Lease Agreement are as follows:
1. Leased Premises: The Leased Premises consist of approximately 80,548 square feet of FIS, office and related space and 93 vehicle parking spaces at no charge.
2. Term: Initial term of one year beginning on October 1, 2015. The Lease will automatically renew on a year-to-year basis at the option of the CBP for 19 years but not beyond September 30, 2035. The CBP may terminate this Lease, in whole or part, at any time during the term of this lease with 120 days prior written notice to HAS.
3. Use: Federal Inspection Services (FIS) facility for the processing of international passengers. The CBP will locate and office inspections personnel onsite.
4. Rent: The CBP will pay no rent.
5. Utilities and Maintenance: HAS will provide all services, utilities and maintenance
required for the proper operation of the Premises.
Director's Signature:
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Mario C. Diaz
Houston Airport System