AGENDA CAPTION:
Title
Consider approval of Resolution 2024-248R, approving a lease agreement with Becerra Corp., for the lease of city-owned property located at 201 South LBJ Drive; authorizing the City Manager, or her designee, to execute said lease agreement; and declaring an effective date.
Body
Meeting date: January 7, 2025
Department: Engineering & CIP
Amount & Source of Funding
Funds Required: None
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Fiscal Note:
Prior Council Action:
August 6, 2013 - City Council approved the purchase of 1.813 acres from Union Pacific Rail Road for a total purchase price of $423,305.00 under Resolution 2013-116)
May 1, 2018 - Council approved lease payment settlement under item ID#18-244
May 15, 2018 - Council approved new lease under Resolution 2018-78R
December 17, 2024 - Council postponed the lease agreement approval
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Background Information:
The attached lease agreement approves a 12-month ground lease with Becerra Corp, a Texas corporation, to continue leasing the property located at 201 South LBJ Drive. This lease follows a lease with the same tenant approved in 2018, which is continuing on a month-to-month basis until a new lease is signed.
The tenant is currently subleasing the property to SM Coffee Ventures LLC, which runs a food establishment. The City Council is being asked to approve the new lease and to also approve the continuation of the sublease.
In 2013, City Council approved the purchase of approximately 1.813 acres of land from Union Pacific Railroad (Resolution No. 2013-116R). The purchase included three existing commercial lease agreements that Union Pacific Railroad assigned to the City, including the property at 201 South LBJ Drive which has historically been used as a food establishment.
When City purchased these properties, the leases were transferred to the City as well. This property (201 South LBJ) was leased by Mr. Anderson under the business of the Dixie Cream Do-Nut Shop. In 2015, the building was purchased by Becerra Corporation and continued as a food establishment. In 2018, the City revised the lease term with Becerra Corporation and established a month-to-month lease with no termination date. In addition, Council approved settlement of unpaid rent from 2014-2017; reducing it from $17,240.67 to $2,063.21. Rent has been paid in full since 2019. In 2024, all leases associated with the 2013 UPRR purchase where reviewed and revised to ensure the terms and rates of the leases are consistent with each other.
The proposed yearly rent for the property is $5,093.00 for 2025. The proposed lease expires at the end of January 2026.
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Recommendation:
Staff recommends approval of this item.