SUBJECT: FINAL READING OF ORDINANCE NO. 2003-O-114
Authorizing the City Manager to repeal Ordinance No. 2000-O-171 dated July 3, 2000, and authorizing the City Manager to execute a lease with KK Communications, L.P., for approximately 5,672 square feet constituting Building No. 962 located at 1816 Pappas Street at the Laredo International Airport. Lease term is for seventeen (17) years and six (6) months commencing on April 1, 2003 and ending on September 30, 2020. Monthly rent shall be $3,617.22 and will be adjusted annually according to changes in the Consumer Price Index and further adjusted by fair market value appraisal on the 10th anniversary; providing for an effective date.
INITIATED BY: Cynthia Collazo
Assistant City Manager
STAFF SOURCE: Jose L. Flores
PREVIOUS COUNCIL ACTION: On April 21, 2003, Ordinance was introduced by City Council, and Staff was instructed to proceed.
Autophone of Laredo, a former airport tenant since 1975, sold its business to KK Communications, L.P. KK Communications, L.P. is entering into a new lease for the remaining term of the lease agreement that Autophone of Laredo had previously. All terms and conditions remain unchanged and in effect.
FINANCIAL IMPACT: Building Rent Revenues
Account No. 242-0000-361-1060
Previous Monthly Rent: $3,617.22
Proposed FMV Rent: $3,617.22 ($0.6377 Per Square Foot
x 12 Mos.= $43,406.64
COMMITTEE RECOMMENDATION: The Airport Advisory Committee recommends approval.
STAFF RECOMMENDATION: That the City Manager be authorized to repeal Ordinance No. 2000-O-171 and execute a lease agreement with KK Communications, L.P.
ORDINANCE NO. 2003-O-114
AUTHORIZING THE CITY MANAGER TO REPEAL ORDINANCE NO. 2000-O-171 DATED JULY 3, 2000, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE WITH KK COMMUNICATIONS, L.P., FOR APPROXIMATELY 5,672 SQUARE FEET CONSTITUTING BUILDING NO. 962 LOCATED AT 1816 PAPPAS STREET AT THE LAREDO INTERNATIONAL AIRPORT.
1. LEASE TERM IS FOR SEVENTEEN (17) YEARS AND SIX (6) MONTHS COMMENCING ON APRIL 1, 2003 AND ENDING ON SEPTEMBER 30, 2020;
2. MONTHLY RENT SHALL BE $3,617.22 AND WILL BE ADJUSTED ANNUALLY ACCORDING TO CHANGES IN THE CONSUMER PRICE INDEX AND FURTHER ADJUSTED BY FAIR MARKET VALUE APPRAISAL ON THE 10TH ANNIVERSARY; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the Airport Director recommends that the City Council authorize the City Manager to repeal Ordinance No. 2000-O-171 dated July 3, 2000, and authorizing the City Manager to execute the proposed lease between the City of Laredo, as LESSOR, and KK Communications, L.P., for approximately 5,672 square feet constituting Building No. 962 located at 1816 Pappas Street at the Laredo International Airport, as a contract and in furtherance of the development of the Laredo International Airport and as a support to the maintenance and operation of the Laredo International Airport;
WHEREAS, the Airport Advisory Committee finds that said lease is in the best interest of the Airport and recommends that the City Council approve the proposed lease; and
WHEREAS, the City Council of the City of Laredo having heard the recommendations of the Airport Director and of the Airport Advisory Committee agrees with same.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LAREDO THAT:
Section 1: The City Manager be hereby authorized to repeal Ordinance No. 2000-O-171 dated July 3, 2000, and authorizing the City Manager to execute a lease with KK Communications, L.P., for approximately 5,672 square feet constituting Building No. 962 located at 1816 Pappas Street at the Laredo International Airport, a copy of which lease is attached hereto as Exhibit A, and incorporated herein as if set out at length for all intents and purposes.
Section 2: This Ordinance shall become effective upon passage hereof.
PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE ____ DAY OF ________________, 2003.
ELIZABETH G. FLORES
GUSTAVO GUEVARA, JR.
APPROVED AS TO FORM:
JAIME L. FLORES
VALERIA M. ACEVEDO
ASSISTANT CITY ATTORNEY