Title
Consider a memorandum/resolution approving a lease termination agreement with Killeen Sister Cities, Osan, for leased premises at Killeen Civic and Conference Center complex.
Body
DATE: July 21, 2026
TO: Kent Cagle, Interim City Manager
FROM: Tiffanie McNair, Executive Director of Community Development
SUBJECT: Lease termination agreement with Sister Cities, Osan, for leased premises at Killeen Civic and Conference Center Complex.
BACKGROUND AND FINDINGS:
The Korean Pagoda, located within the Killeen Civic & Conference Center (KCCC) complex, was constructed through the Sister Cities partnership with Osan, a Texas nonprofit corporation. The existing lease agreement between the City of Killeen and Killeen Sister Cities, Osan is scheduled to expire on September 17, 2027. However, Killeen Sister Cities, Osan has requested early termination of the agreement and transfer of responsibility to the City.
Over time, the pagoda has experienced ongoing maintenance issues, including deteriorating wood components, roof leaks, and recurring pest control concerns. In addition, public use of the structure has been limited, and the cost to reconstruct and maintain the facility would exceed the funding available.
The proposed lease termination includes a provision in which Sister Cities would pay $20,000 to the City of Killeen and transfer ownership of the existing Connex storage container located on the KCCC complex.
Staff recommends terminating the lease agreement and utilizing these funds for removal of the Korean Pagoda and enhancement of the existing Korean War Memorial area through landscaping, recognition elements, and other beautification improvements.
This approach preserves recognition of Korean heritage and the Sister Cities partnership while creating a sustainable, low-maintenance improvement that provides long-term value to the community and visitors of the Civic & Conference Center complex.
THE ALTERNATIVES CONSIDERED:
N/A
Which alternative is recommended? Why?
N/A
CONFORMITY TO CITY POLICY:
This item conforms to local policy and state law.
FINANCIAL IMPACT:
What is the amount of the revenue/expenditure in the current fiscal year? For future years?
As part of the lease termination agreement, Sister Cities would provide $20,000 in funding and one Connex storage container to the City of Killeen. The funding would be utilized to remove the Korean Pagoda and provide enhancements to the Korean War Memorial area.
Is this a one-time or recurring revenue/expenditure?
One time revenue/expenditure.
Is this revenue/expenditure budgeted?
No
If not, where will the money come from?
The $20,000 revenue will be posted to Other Income 214-47756-500-500-000000. The expense will post to the applicable expense account based on the type of service utilized to remove the Pagoda and provide enhancements to the Korean War Memorial area. The funding will come from Killeen Civic and Conference Center’s operational budget.
Is there a sufficient amount in the budgeted line-item for this revenue/expenditure?
The funding will come from Killeen Civic and Conference Center’s operational budget.
RECOMMENDATION:
Staff recommends that City Council authorize the City Manager, or designee, to execute the lease termination agreement with Killeen Sister Cities, Osan for the leased premises located at the Killeen Civic and Conference Center.
DEPARTMENTAL CLEARANCES:
Legal
Finance
ATTACHED SUPPORTING DOCUMENTS:
Lease Agreement
Termination Agreement
Presentation