Presenter/Contact
Presenter
Matthew Eckmann, Real Estate Manager
Contact Info
(830) 221-4089 - meckmann@nbtexas.org
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SUBJECT:
Title
Approval of a lease agreement between the City of New Braunfels and West San Antonio 111, LLC. to provide public parking in Downtown New Braunfels.
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BACKGROUND / RATIONALE:
The 1.1 acre site (Exhibit A) is currently used as a private lot to provide parking for the office building’s tenants. Given downtown visitors’ propensity to use the property as a public parking lot, the property owner recently took to install warning signs about the lot being a tow-away zone. The owner, West San Antonio 111, LLC, managed by Mr. R. Mike Gribble, has also provided enforcement on Saturday mornings to prevent parking, primarily from the Farmer’s Market, on the lot until the office building closes at around 1pm. If approved, this proposed lease agreement between the City of New Braunfels and the property owner this private parking lot will provide free public parking on a limited basis. The lot has approximately 120 parking spaces, all of which are included in the lease, except on Saturdays when the number of spaces is reduced as specified below.
The proposed lease would make the lot available for public parking on the following days and times:
• Every weekday starting at 5:01 p.m. until 12:00 a.m.; and
• Approximately 75 spaces would be available on Saturday morning beginning at 7:00 am until 1:30 p.m.; and
• Saturday from 1:30 p.m. until 12:00 a.m. Monday.
If approved, the City would be able to designate free public parking according to the above stated conditions and times. Additionally, the City would have use of approximately 75 spaces on Saturday to supplement parking demands created by events and uses on Saturday mornings. The City’s rent will be made in the form of an annual payment of $10,000 with an additional commitment to improve the parking lot. Improvements include a seal coat treatment and restriping. The City must also post signage that informs the public that parking is only permitted Monday through Friday from 5:01 p.m. until 12:00 a.m.
The initial lease term is for three years with a one year renewal upon Lessee’s request and at Lessor’s option. After the first year of the lease, it may be terminated by mutual agreement in writing between Lessor and Lessee. At any time, if the City is in default, the Lessor can give a default notice to the City at which time the City will have thirty (30) days to cure the default. If the owner chooses to end the lease after the first anniversary, then the owner will be legally responsible for reimbursing the City an amount equal to the residual value of the City’s improvements to the parking lot. This will be determined by amortizing the cost of the improvement over the lease term. For example, if the City’s restripe and reseal is valued at $20,000 the improvement would depreciate at $6,666 per year over the life of the lease (three years).
ADDRESSES A NEED/ISSUE IN A CITY PLAN OR COUNCIL PRIORITY:
N/A
FISCAL IMPACT:
The total fiscal impact of the parking lot lease is approximately $50,000. In reciprocity for the lot, the City will provide the following:
• The City will indemnify the owner from liability arising from the public’s use of the lot; and
• Reseal and restripe the parking lot during the 2017-2018 fiscal year at a cost not to exceed $20,000.
Spread over a three year term, the lease costs approximately $16,666 annually.
Recommendation
COMMITTEE RECOMMENDATION:
N/A
STAFF RECOMMENDATION:
Staff recommends approval of the lease.