HomeMy WebLinkAboutContract 35648 COON SECRETARY
RA CT NO
AMENDMENT TO
CITY SECRETARY CONTRACT NO. 24403
LEASE AGREEMENT BETWEEN
CITY OF FORT WORTH AND MONROE STREET VENTURE
THIS AMENDMENT to City Secretary Contract No. 24403 (the "Agreement")
is made and entered into by and between the CITY OF FORT WORTH, a home rule
municipal corporation of the State of Texas located within Tarrant, Denton, and Wise
Counties, by and through its duly authorized Assistant City Manager, Mark Ott
(hereinafter referred to as the "City) and MONROE STREET VENTURE, consisting of
limited partner, Gordon S. Swift, and acting through its managing partner, Ron G.
Crabtree
WHEREAS, on the 16th day of November, 1998, the City of Fort Worth and
MONROE STREET VENTURE entered into a lease agreement (City Secretary Contract
No. 24403) whereby MONROE STREET VENTURE leased from the City of Fort Worth
a portion of the Fourth floor of the City of Fort Worth parking garage located at 10`h and
Taylor Streets in Fort Worth, Texas for fifty-eight (58)parking spaces; and
WHEREAS, on March 20, 2003 MONROE STREET VENTURE provided
written notice to the City that MONROE STREET VENTURE desired to renew for a
term extending through July 31, 2008 (the "First Renewal");
WHEREAS, the City and MONROE STREET VENTURE mutually entered a
First Renewal term;
WHEREAS, it is the intention of the City of Fort Worth and MONROE STREET
VENTURE to continue in the lease; and
WHEREAS,the parties to City of Fort Worth City Secretary Contract No. 24403,
desire to modify the terms of their lease agreement and incorporate these modifications
into their agreement;
NOW, THEREFORE, KNOW ALL BY THESE PRESENTS:
Nk"IL END
R g MI SEX.
That, for and in consideration of the mutual agreements in the Lease, the City and
MONROE STREET VENTURE do hereby agree as follows:
1.
Subsection B of Section I of City of Fort Worth City Secretary Contract No.
24403 is hereby amended to read in its entirety as follows:
B. Upon mutual agreement of the parties, Lessee shall have the
option to renew this Lease with the existing terms set forth
herein for one three (3) year renewal term. If Lessee desires to
exercise the option to renew for an additional (2) year term, it
may do so by giving written notice to the Lessor ninety (90)
days prior to the termination of the (3) three year renewal
term which begins on September 1" 2007 and ends on August
3 1"2010.
2.
Subsections A and B of Section II of City of Fort Worth City Secretary Contract
No. 24403 are hereby amended to read in their entirety as follows:
A. Lessee covenants and agrees to pay Lessor as monthly rental for
the described parking spaces a sum equal to ninety seven (97%) of
the monthly rental rates as may be established by the Fort Worth
City Council, as such rates may change from time to time, plus
applicable sales tax. The current rate for purposes of this
Agreement is one hundred dollars $100.00 per parking space, with
a 3% discount applied the rate will be $97.00 or (58 X
$97.00=$5,626.00), plus applicable sales taxes, per month.
B. All monthly rental payments shall be payable in advance on
or before the first day of each month, with the first monthly
rental payment hereunder being due on or before
September 1", 2007.
3.
2
Except as modified by this Amendment, the Lease and all covenants, agreements, terms
and conditions thereof shall remain in full force and effect and are hereby in all respects
ratified and confirmed and nothing contained herein shall release Landlord or Tenant
from any obligation or liability accruing under the Lease prior to the date hereof.
IN WITNESS WHEREOF, the parties hereto have executed this Lease on the respective
dates indicated below. d4hEXECUTED this the Y da of "P4 2007.
Lessor: City of Fort Worth Lessee: MONROE STREET VENTURE
44�By: By: �'_Qw
Mark Ott Ron G. Crabtree
Assistant City Manager Managing Partner
ATTEST:
MartYHe rix; City Secretary
Approved as to Form and Legality
r
Prssig City Attorney
Contract Auth.orizatiola
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 7i24/2007
DATE: Tuesday, July 24, 2007
LOG NAME: 20MONROE STEET REFERENCE NO.: **C-22262
SUBJECT:
Authorize Execution of an Amendment to City Secretary Contract No. 24403 with Monroe Street
Venture for the Lease of the Fourth Floor of the Municipal Parking Garage Located at 10th and
Taylor Streets to Include a Rate Increase, a Three-Year Term Commencing September 1, 2007,
and One Two-Year Renewal Option
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an amendment to City
Secretary Contract No. 24403, the Lease Agreement with Monroe Street Venture (Monroe), for the fourth
floor of the Municipal Parking Garage (Municipal Garage) located at 10th and Taylor Streets to include a
rate increase from $67.90 per month per space to the proposed fee of $97.00 per month per space, a
three-year term commencing on September 1, 2007, and one two-year renewal option.
DISCUSSION:
On August 1, 1998, a Lease was entered into between the City and Monroe for the lease of 58 parking
spaces on the fourth floor of the Municipal Garage. This Lease was extended on August 1, 2003, with an
end date of July, 2008. According to the original agreement, the City has the right to adjust the rate as
deemed necessary. No rate increase has occurred since August, 1998.
Since 1998, the operational costs have increased by approximately 45 percent; from an average cost of
$65,920 per year for essential services and utilities to a current average cost of$95,550.
A benchmark study shows a significant discrepancy between the prices charged by the City of Fort Worth
for reserved parking spaces in the garage versus current existing rates within the downtown area. A study
of seven garages within a ten block proximity of City Hall revealed that the average cost for a reserved
parking spot is $150.82 with a median of$155.00 and the lowest price point being $119.00.
In order to bring the rates to current market values, the Transportation and Public Works Department
proposes to amend the Lease to include a rate increase for the 58 parking spaces on the fourth floor from
the current fee of$70.00 per month per space with a 3 percent discount to the proposed fee of$100.00 per
month per space. With the application of a 3 percent discount the effective fee is $97.00 per space per
month and an overall total cost of $5,626.00 per month to Monroe. The proposed rate adjustment will
generate an additional revenue of $20,253.60 per annum. This amendment also provides for a three-year
term commencing September 1, 2007 and ending on August 31, 2010, with an option for one two-year
extension. The City also has the right to withdraw part or all of the parking spaces on this floor for its own
use after the end of the initial three-year term.
FISCAL INFORMATION/CERTIFICATION:
Logname: 20MONROE STEET Page 1 of 2
The ,Finance Director certifies that the Transportation and Public Works Department Parking Fund will be
responsible for the collection and deposit of funds from the lease agreement.
TO Fund/AccounVCenters FROM Fund/AccounVCenters
PE59 442042 0208500 $67,512.00
Submitted for City Manag_er's Office-by:. Marc Ott (8476)
Originating Department Head: Robert Goode (7804)
Additional Information Contact: Peter Elliott (7977)
Logname:20MONROE STEET Page 2 of 2