From
Max
Title
Supplemental Agreement for Lease Audit No. TL 22749, Covering Use of Railroad Property at Grand Prairie, Texas for one year with four one-year renewals; effective September 1, 2020 to February 28, 2021, rent is $6,500; Effective March 1, 2021, rent is $36,000 annually with a 2% increase cumulative and compounded, for a total cumulative cost of $154,880
Presenter
Gabe Johnson, Director of Public Works
Recommended Action
Approve
Analysis
On May 19, 1999, the City of Grand Prairie and Union Pacific Railroad Company entered into a lease agreement TL22749, folder 1182-80 for the lease of property along the railroad tracks for public parking. In the past, the lease has been executed on a year to year basis.
At the current time, Staff is recommending a Supplemental Agreement with Union Pacific Railroad Company allowing for a multi-year agreement for the current year and four additional years.
The current year effective September 1, 2020 to February 28, 2021, will be for $6,500.
Effective March 1, 2021, the City will pay $36,000 annually with a 2% increase cumulative and compounded. Approximate total of current request of $6,500 plus four additional years will be $154,880.
Not more than once every three years thereafter Union Pacific Railroad Company may re determine the rent. In the event that they do re determine the rent, the City will be contacted of such change.
Financial Consideration
Funding for the current year's payment of $6,500 is available in the FY 2020/2021 Storm Water Utility Fund (233010) 61630 (Rent/Land, Bldg, Facilities). Future year payments will be appropriated from approved Operating Fund budgets.