HomeMy WebLinkAboutIR 7291 'INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7291
"A"9TAM'd June 7 , 1988
To the Mayor and Members of the City Council
Subject: LEASE EXTENSION ON NATIONAL GUARD ARMORY/LAKE WORTH LEASE
BACKGROUND
In August 1964, the City leased to the Texas National Guard Armory
Board a tract of land containing 80 acres of land. The term of the
lease was 50 years at an annual lease rental of $160. Approximately 13
acres of the original 80 acres has been relinquished by the National
Guard and subsequently leased to White Settlement. The lease today
contains approximately 67 acres and will expire in April , 2014.
The National Guard Bureau has requested that this lease be extended an
additional 24 years. This would extend the lease through August,
2038. Extending the lease these additional years will enable the
National Guard Bureau to qualify for federal funds to build a new
Combined Support Maintenance Shop on this site located at 8101
Shoreview Drive. The estimated cost of this 47,000 square foot
facility is $3,210,000.
The National Guard Bureau has been informed by the Real Property
Management Department that an extension of the lease is possible as the
City does not have plans to develop this area which is adjacent to an
existing park system of the City of White Settlement. However, the
Bureau has presented objections to-any increase in the existing annual
rental rate of $160 per year as any increase in rental may defeat the
proposed project.
RECOMMENDATIONS
It is recommended that the Council waive any increase in lease rental
due to the economic impact this new facility will have on the local
economy. The current facility at 8101 Shoreview Drive makes a
contribution of well over $10,000,000 to the economy when 2.729 is used
as the economic multiplier. It is also recommended that the Council
authorize the lease extension of 24 years.
If there are no objections, a formal M&C will be brought before the
Council in the near future for approval of the above mentioned
recommendations.
^)Douglas Harman
ae
City Manager
DH/MEP
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-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS