Discussion and possible action to exercise the hold over lease clause under the lease agreement between Moises Gonzalez (LANDLORD) and Webb County (TENANT) for leased premises known as 2900 US Highway 83. The hold over lease rate of $4,000.00 per month would be effective July 1st, 2015 and would terminate upon vacating the leased premises, all other 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. Lastly, on March 23rd, 2015, Court took action to approve the holding over rate from April 2015 through June of 2015.
Solution: The estimated time of completion for renovations are projected by end of December, 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.
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