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30.

Meeting Date:	10/26/2015
Moises Gonzalez Boxing Gym lease - Holding over rate
Submitted for:	Martin Cuellar	Submitted By:	Joe Lopez
Department:	Sheriff

Subject:

Discussion and possible action to exercise the holding over clause under the lease agreement between Moises Gonzalez (LANDLORD) and Webb County (TENANT) for leased premises known as 2900 US Highway 83. The holding over rate of $4,000.00 would be effective November 1, 2015 and would terminate upon vacating the leased premises, all over terms and conditions remain unchanged. [Account #001-0109-6012]

Issue: Due to damages sustained by the Probation/Sheriff Boxing Gym building located at 3802 S. Zapata HWY, the Sheriff's athletics division was relocated temporarily to the above mentioned location under a lease rental agreement with Mr. Gonzalez. Initial term was for one (1) year ending March 2014. Subsequent to that the lease agreement was extended for one more year ending March 2015.

Solution: The estimated time of completion for renovations is projected by end of November 2015. Since renovations are nearing completion it would not be favorable to Webb County to renew lease agreement for another year or any other term that would exceed the estimated time of completion.

Result: Therefore, exercising the HOLDING OVER clause would provide a month to month rental payment without any financial commitments beyond the vacancy of this leased property.

Background:

Due to damages sustained by the Probation/Boxing Gym building located at 3802 S. Zapata HWY, the Sheriff's athletics division was temporarily relocated to 2900 US Highway 83 under a lease rental agreement with Mr. Moises Gonzalez. The Initial term was for one (1) year ending March 2014. Subsequent to that the lease agreement was extended for one more year ending March 2015 with Court approval. The estimated time of completion for renovations is projected by end of November 2015.

Since renovations are nearing completion it would not be favorable to Webb County to renew lease agreement for another year or any other term that would exceed the estimated time of completion. Therefore, exercising the HOLDING OVER clause would provide a month to month rental payment without any financial commitments beyond the vacancy of this leased property.

Previous Court Action:

Holding Over Rate was previously approved on July 27, 2015 by Commissioners Court.

Fiscal Impact

Budget Account Number:	001-0109-6012
Funding Source:	Space Rental
Balance:	$4,000.00
Financial Impact:
Holding Over Rate for Month of November only. $4,000.00 001-0109-6012 Space Rental Account

Attachments
Moises Gonzalez lease
extension agreement