6.d.
TCEDC Agenda
- Meeting Date:
- 10/04/2023
- Title:
- Ratification of Laydown Yard Agreement Extension with Air Products and Chemicals, Inc.
- Submitted For:
- Jon Branson
- Submitted By:
- Jon Branson, Management Services
- Department:
- Management Services
ACTION REQUEST (Brief Summary)
Ratification of an extension of existing agreement with Air Products and Chemicals, Inc.,
BACKGROUND
In October 2020, the TCEDC entered into an agreement (attached) with Air Products and Chemicals, Inc., (Air Products) to lease a parcel of property along Bay Street for the purposes of a laydown yard to place materials and supplies for the Gulf Coast Ammonia Project. Due to supply chain issues and delay in the project, Air Products requested an extension of their initial lease for an additional 10 months (1st extension attached). The initial term was for twenty-five (25) months ending on October 31st of 2022. The first extension was for ten (10) months and expired on August 31, 2023.
They have now asked for a second extension to the lease due to a new project that will come on board in 2024. The second extension would be for a period of thirty-six (36) months. The new lease would become effective beginning the 1st day of September through August 31, 2026. There will be no rent due from Licensee to Licensor for the period of the 1st day of September 2023 until the 31st day of August 2024. During this first twelve month time period no work will be done on the site however, Air Products will be responsible for maintenance and upkeep on the property.
It is anticipated that work on a new project will begin in September of 2024. At that time, beginning September 1, 2024, the Licensee will pay the Licensor $8,333 Dollars (USD) per month for the remaining term of the Second Lease Extension
They have now asked for a second extension to the lease due to a new project that will come on board in 2024. The second extension would be for a period of thirty-six (36) months. The new lease would become effective beginning the 1st day of September through August 31, 2026. There will be no rent due from Licensee to Licensor for the period of the 1st day of September 2023 until the 31st day of August 2024. During this first twelve month time period no work will be done on the site however, Air Products will be responsible for maintenance and upkeep on the property.
It is anticipated that work on a new project will begin in September of 2024. At that time, beginning September 1, 2024, the Licensee will pay the Licensor $8,333 Dollars (USD) per month for the remaining term of the Second Lease Extension
ANALYSIS
Staff recommends ratifying the lease with a retroactive date of September 1, 2023.