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Home My WebLink AboutContract 27674-R2 CITY SECRETARY CONTRACT NO. 2-:�\o FORTWORTH Ron Crabtree Monroe Street Professional Building 2400 Ellis Fort Worth, TX 76164 Re: Second Renewal of Lease Agreement between the City of Fort Worth ("Tenant") and Monroe Street Professional Building ("Landlord") for 15,041 sf at 900 Monroe ("Leased Premises") (as previously amended, the "Lease") (City Secretary Contract Nos. 27674, 33480 and 35263) Dear Mr. Crabtree: This letter is to confirm our agreement as to the second renewal term of the Lease. The Lease term originally began on September 1, 2002, and has been amended and renewed through the documents referenced above. The Lease is currently in its first renewal term, with a termination date of April 30, 2012. The Lease contemplates one additional renewal term, beginning May 1, 2012 and terminating on April 30, 2017. Tenant would like to exercise the second option to renew the lease, and Landlord agrees to grant such extension. The Lease contemplates a rental rate during the second renewal term of$16.00/sf. The parties agree to change this rate to $14.50/sf. This letter agreement is to document that the parties mutually agree to extend the term of the lease until April 30, 2017, and that the rental rate during the second renewal term will be $14.50/sf. The signatures below indicate each party's concurrence with these terms. This letter agreement has the same authority as an amendment to the Lease, and will be recorded in the Office of the City Secretary of Fort Worth. [SIGNATURES ON FOLLOWING PAGE] EOFFICIALORD ARYTX M&C #L13285 Page 1 of 3 Click here to open original Microsft Word Version City of Fort Worth, Texas 41Dayoe And Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 4/30/02 **L-13285 17LEASE 2 of 2 SUBJECT 'AUTHORIZE A LEASE WITH MONROE STREET PROFESSIONAL BUILDING, LIMITED FOR OFFICE SPACE LOCATED AT 900 MONROE STREET FOR THE WATER DEPARTMENT AND THE ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT Recommendation: It is recommended that the City Council: 1. Authorize a lease with Monroe Street Professional Building, Limited for office space located at 900 Monroe Street for the Water Department and the Economic and Community Development Department; and 2. Authorize the City Manager to execute the appropriate leases. Discussion: The Engineering Department, Real Property Services Division, was requested to assist in locating space suitable for the purposes of housing administrative offices and activities for a division of the Water Department and the Economic and Community Development (ECD) Department. Two separate leases have been negotiated. All terms and conditions for both leases are identical: ECD Lease The ECD Department will lease 1,983 square feet on the third floor of the building. This space was recently occupied and has been finished out, therefore immediate tenant improvements are not necessary. However, ECD has been given the option to stay in the space or move to another space, approximately the same size, on the same floor, when the space becomes available. If ECD elects to stay in the original space, the owner will bear the cost of improvements that will be made to accommodate a longer stay. If ECD elects to move to the other space, the owner will bear the cost of the necessary improvements. http://apps.cfwnet.org/ECouncilSearch/CFW/render file.aspx?mode=html&filename=L1... 12/20/2011 M&C#L13285 Page 2 of 3 rf A lease rate of $12.10 per square foot was negotiated for this space. This is a lease cost of $23,994.30 annually, or $1,999.53 monthly, plus $75.78 per month for parking. In addition, ECD will be responsible for its share of the operating expenses as described and limited under the terms of the lease agreement. If the lease with Monroe Street Professional Building, Limited is negotiated with a May 1, 2002 start date, the fiscal year cost for 2001-2002 is $9,997.65. City staff recommends a five- year lease, contingent on annual budget approval, with two five-year options to renew. X.'e Water Department Lease The Water Department has leased space at 811 Lamar Street for the past several years to house employees associated with various capital project programs, including the Wet Weather and other programs. The current lease ends in September 2002, and the building is currently under a potential change in ownership that may result in demolition. Alternative space is needed for those employees currently at 811 Lamar Street. The Water Department is proposing to lease 12,951 square feet of office space to include 2,683 square feet on the first floor and approximately 10,268 square feet on the second floor. Both spaces will require finish out work. The owner will bear the cost of the necessary tenant improvements. A lease rate of $12.10 per square foot was negotiated for this space. This is a lease cost of 1156,707.10 annually, or $13,058.93 monthly. In additlor�the Water DepattmenrWill be responsible for its f share of the operating expenses. If the lease with Monroe Street Professional Building, Limited is negotiated with a September 1, 2002 start date, the fiscal year cost for 2001-2002 is $13,058.93. City staff recommends a five-year lease, contingent on annual budget approval, with two five-year options to renew. The Water Department is an enterprise fund, therefore, there will be no significant impact to the General Fund. The ECD Department has secured Community Development Block Grant funding for the remainder of this fiscal year. Beginning with the 2002-2003 fiscal year, the General Fund will incur a facility rental expense of$23,994.30 annually for the space the ECD will occupy. http://apps.cfwnet.org/ECouncilSearclVCFW/render file.aspx?mode=html&filename=L1... 12/20/2011 . M&C#L13285 Page 3 of 3 FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current operating budgets, as appropriated, of the Water and Sewer Fund and the Grants Fund. RRA Submitted for City FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Manager's Office by: (to) Bridgette Garrett 6140 Reid Rector F61 Originating Department Head: Tom Higgins 6192 (from) A.Douglas Rademaker 6157 PE45 537010 0601000 $ 6,529.47 Additional information PE45 537010 0701000 $ Contact. 6,529.46 Jay Chapa 8819 GR78 537010 002208897210 $9,997.85 Ardina Washington 8003 http://apps.cfwnet.org/ECouncilSearch/CFW/render file.aspx?mode=html&filename=Ll... 12/20/2011 �L4 plt.►vu4� poh'000000 � °" o a%0'A d� [_�o STY OF FORT WORTH 00 D00000°° d aXRSoA�Fernando Costa, RaWd P. Gonzales,AOL C lW Assistant City Manager APP VED AS TO FORM AND LEGALITY: _ L.- 132`3S contract huthoriaatiom Leann D. Guzman, Date Assistant City Attorney MONROE STREET PROFESSIONAL BUILDING By: Cachapel ., n it neral partner By: Ron rabtree, President N CIAL RECORD SECRETARY WORTH, TX