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25.

Meeting Date:	03/23/2015
Moises Gonzalez Lease Rental Agreement - Temporary PAL location
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 April 1st, 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/PAL building located at 3802 S. Zapata HWY, the PAL 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 are projected by end of June 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/PAL building located at 3802 S. Zapata HWY, the PAL 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 are projected by end of June 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.

The Webb County Sheriff's Office recommends approval.

Previous Court Action:

Contract Extension Agreement approved on April 14, 2014 by Commissioners Court for property located on 2900 South Zapata Highway 83.

Fiscal Impact

Budget Account Number:	001-0109-6012
Funding Source:	Rental Account
Balance:	$23,000.00
Financial Impact:
001-0109-6012 Estimated Rental expense $12,000.00 (April 2015 - June 2015) Holding over rate is $4,000.00 / month.

Attachments
Lease extension doc
original lease Moises G.