Agenda - View Meetings (All) (4468694326)

AI# 12706 Image of Lubbock City Logo 2021

Regular City Council Meeting

6.18.

07/23/2024:

Information

Agenda Item

Resolution - Facilities Management: Consider a resolution authorizing the Mayor to execute for and on behalf of the City of Lubbock, a Mutual Termination of Lease Agreement, and all related documents, by and between the City of Lubbock and Dolgencorp of Texas, Inc., regarding property at 2015 50th Street-Unit B.

Item Summary

The City of Lubbock acquired custodianship of the existing lease between Fifty-U, Ltd., Landlord, and Dolgencorp of Texas, Dollar General, Tenant, upon purchase of this property in 2019 with the intention of beginning renovations for the City/County Public Health Facility.

This leased property is 7,700 square feet of the 33,957-square foot facility located at 2015 50th Street, Unit B, Lubbock, Texas. The remaining 26,257 square feet of the property now houses the City and County's newly renovated Lubbock Public Health District.

Fiscal Impact

Tenant Lease payments to the City of Lubbock amount to $44,999.40 annually. Lease forgiveness will begin 60 days prior to the Lease Termination Agreement date and is valued at $7,499.90.
Termination Date is defined in the Lease Termination Agreement as being effective two weeks after the Tenant relocates and opens for business in its new location, but in no case later than February 1, 2025.

Upon approval of the Lease Termination Agreement, the City will not be required to install Dollar General provided signage for two locations; Parking Lot Pylon Sign and a 23-foot long Store Front Sign. The Facilities Department estimates that installation of the required infrastructure, (Electrical), and sign installations, is valued at $25,000.00.

Staff/Board Recommending

Bill Howerton, Deputy City Manager
Erik Rejino, Assistant City Manager
Mark Zavicar, Director Facilities Management

Attachments

Resolution of Mutual Lease Termination

Agreement - Dollar General (s)

Dollar General Lease Agreement