AGENDA CAPTION:
Title
Consider approval of Resolution 2024-248R, approving a Ground Lease Agreement with Becerra Corp to lease city-owned property located at 201 South LBJ Drive for a term of 13 months; authorizing the City Manager, or her designee, to negotiate final terms and conditions related to use of the property as a restaurant and to execute said lease agreement on behalf of the city; authorizing a sublease of the property; and declaring an effective date.
Body
Meeting date: December 17, 2024
Department: Engineering & CIP
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Background Information:
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.
The attached lease agreement approves a 13-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.
The yearly rent for the property is $5556 for 2025. The lease expires at the end of January 2026.
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Recommendation:
Staff recommends approval of this item.