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CITY OF HOUSTON - CITY COUNCIL
Meeting Date: 12/15/2015
District H
Item Creation Date: 12/8/2015
25CF21 Third Amend with Tenant Good Neighbor
Agenda Item#: 36.
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| | | | | | | | Summary:
ORDINANCE approving and authorizing third amendment to Lease Agreement between the City, as landlord and FOURTH WARD CLINIC dba GOOD NEIGHBOR HEALTHCARE CENTER, as tenant, for the purpose of reducing lease space at the West End Multi-Service Center at 190 Heights Boulevard, Houston, Harris County, Texas - DISTRICT H - GONZALEZ |
| | | | | | | | Background:
SPECIFIC EXPLANATION: The General Services Department recommends approval of a Third Amendment to Lease Agreement with Fourth Ward Clinic, dba Good Neighbor Healthcare Center (Tenant), a Texas nonprofit corporation, for approximately 14,914 square feet of space in the West End Multi-Service Center located at 190 Heights Boulevard. The original lease commenced on April 1, 2008, for an initial five-year term with two five-year renewal options. Good Neighbor Healthcare Center (GNHC) is in its third year of the first renewal term.
GNHC provides primary health care services, ob/gyn care, dental and optometry services, and other health services to low-income persons. Currently, GNHC occupies 15,569 square feet of space at a monthly rental of $16,684.78, of which monthly operating expense is $13,155.80. GNHC has been allowed to offset a portion of its rental amount by the value of the health services it provides.
GNHC desires to reduce its space to 14,914 square feet. The proposed Third Amendment will reduce the lease premises from 15,569 square feet to 14,914 square feet and establish a new monthly rental of $15,974.23, of which operating expense is $11,875.27, as outlined below:
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Year
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Annual / Monthly Rental
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Annual / Monthly Operating Expense
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Annual / Monthly Payment
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3
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$49,187.51 / $4,098.96
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$142,503.25 / $11,875.27
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$191,690.79 / $15,974.23
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4
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$49,187.51 / $4,098.96
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$142,503.25 / $11,875.27
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$191,690.79 / $15,974.23
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5
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$52,700.93 / $4,391.75
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$142,503.25 / $11,875.27
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$195,204.18 / $16,267.02
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The new rental and operating expense rates will be effective the first day of the month immediately following the date the Amendment is countersigned by the City Controller.
All other terms and conditions of the amended lease remain the same.
SM:HB:JLN:CF:cf
xc: Marta Crinejo, Jacquelyn L. Nisby, Anna Russell and Claudette Manning |
| | | | | | | | Prior Council Action:
Date and identification of prior authorizing
Council action:
Ordinance No. 2007-1171, October 24, 2007
Ordinance No. 2010-0135, February 17, 2010
Ordinance No. 2013-0166, February 26, 2013 |
| | | | | | | | Contact Information:
For additional information contact:
Jacquelyn L. Nisby Phone: 832-393-8023 |
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