AGENDA CAPTION:
Title
Consider approval of Resolution 2024-246R, approving a five-year Ground Lease Agreement with Kyle D. Reese to lease city-owned property located at 169-75 South LBJ Drive; authorizing the City Manager, or her designee, to execute said lease agreement; and declaring an effective date.
Body
Meeting date: December 17, 2024
Department: Engineering & CIP
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Background Information:
On August 6, 2013, San Marcos City Council approved the purchase of approximately 1.813 acres of land from Union Pacific Railroad (Resolution No. 2013-116R) wherein there were three existing lease agreements that the Union Pacific Railroad assigned to the City.
City staff determined that one of the assigned leases with Frayezur Properties, LP had the tenant paying rent for an area of the City owned property that was used by Kyle D. Reese’s tenants and their customers. City staff determined it would be prudent to split the lease with the original assigned tenant, so Mr. Reese could pay for his portion and the original assigned tenant could pay for their used portion of the City owned property.
The attached agreement approves a 5 year lease with Mr. Reese, to lease the surface of City owned property located at 169-175 South LBJ Drive.
The rent for the property is $2,002.20 per year with annual increases over the term.
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Recommendation:
City staff recommends approval of this lease agreement.