SUBJECT
title
Authorizing the City Manager to execute a lease agreement between the City of Laredo and the Adex Trading, Inc., for a property located at 2015 Pappas, constituting of approximately 97,183 square feet of land, including approximately 28,366 square feet of building space known as Building No. 1315. Lease term shall be for five years commencing on the date of execution. Tenant is hereby granted two options to extend this lease for an additional five years per option upon mutual written agreement between both parties. commencing on January 1, 2025 with four options, each equal to five years, upon mutual agreement of the parties. The monthly rent shall be $6,973.00 and will be adjusted annually according to changes in the Consumer Price Index (CPI); providing for severability; and providing for an effective date.
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PREVIOUS COUNCIL ACTION
10/05/1992 - Ordinance No. 1992-O-182
05/18/2009 - Ordinance No. 2009-O-084
BACKGROUND
On October 5, 1992 the Laredo City Council approved a lease agreement authorizing a lease between the City and IRCO Corporation. On May 18, 2009, IRCO Corporation assigned the lease hold interest of the property to Adex Trading, Inc.
ADEX has remained a tenant for the airport since the assignment of the lease. The tenant currently leases approximate 97,183 square feet of land, including approximately 28,366 square feet of building space known as Building No. 1315 located at 2015 Pappas at the Laredo International Airport.
Airport and Tenant have agreed to execute new lease for the same property located at 2015 Pappas at the Laredo International Airport. The lease term shall be for five years commencing on January 1, 2025 with four options, each equal to five years, upon mutual agreement of the parties. The monthly rent shall be $6,973.00 and will be adjusted annually according to changes in the Consumer Price Index (CPI).
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends the approval of this introductory ordinance.
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: Y
Source of Funds: Rent
Account #: 242-0000-361-2060
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
Monthly Rent: $6,973.00
Annual Rent: $83,676.00
Revenue will be allocated to the Airport Land Rents account: 242-0000-361-20-60.