TITLE
Consider a memorandum/resolution authorizing a lease agreement amendment with Bell County Human Services for space at the Killeen Arts & Activities Center.
SUMMARY
AGENDA ITEM
Authorize Lease Agreement Amendment No. 1 with Bell County Human Services at the Killeen Arts & Activities Center
ORIGINATING DEPARTMENT
Community Development
BACKGROUND INFORMATION
The City Council approved the lease agreements and amendments on July 26, 2016, for tenants occupying space at the Killeen Arts & Activities Center (KAAC). The leases were for a period of three years, expiring in July and August 2019.
DISCUSSION/CONCLUSION
Upon further consideration, Bell County would like to propose different terms than were approved on July 26, 2016. The county would like to propose a one-year term with two (2) additional one (1) year terms for your consideration. During council discussion it was mentioned several times that council would have liked to see a shorter lease term for consideration. This proposal accomplishes that.
FISCAL IMPACT
The increase to the monthly rent from sixty-three (63) cents per square foot to seventy (70) cents per square foot went into effect August 1, 2016. The total monthly rent expected to be received from Bell County is $4,140.14. All utilities that are not directly billed to Bell County will be prorated based on the square foot of space that they occupy and will be billed in arrears by the City of Killeen.
RECOMMENDATION
Staff recommends that council approve this lease amendment with Bell County and authorize the interim city manager to execute the lease agreement - Amendment No.1 with Bell County for the space at the Killeen Arts & Activities Center occupied by Bell County Human Services.