CC MEETING: March 19, 2024
DATE: March 5, 2024
TO: Erin Rinehart, City Manager
FROM: Josh Giles, Development Program Manager
Ravi Shah, Director of Development Services
Marc Guy, Assistant City Manager
Title
Consider A Resolution Authorizing The City Manager To Execute A Lease With Frost Bank For The Use Of City-Owned Property Located At 1111 West Belt Line Road (Gravley Center).
Body
BACKGROUND:
A portion of the City-owned Gravley Center (approximately 2,605 square feet) located at 1111 West Belt Line Road has been leased to Frost Bank for over eleven years. The last available extension was exercised at a rate of $16.00/square foot, and is set to expire on March 31, 2024. Frost Bank has requested to continue occupying the space through the formation of a new lease.
The City Council TOD Committee unanimously recommended proceeding with a new five (5) year lease at $20.00/square foot, with $0.50 annual base rent increases and including all utilities, as well as two consecutive one-year extensions at fair market value. The City uses Frost Bank financial services and requires Frost Bank to maintain a physical location within the City limits. This location is one of two Frost Bank branches in Carrollton.
FINANCIAL IMPLICATIONS:
The lease terms call for an effective lease rate of $21.00/square foot, or $4,558.75/month. The total projected revenue from the base rent for the five-year initial lease term is $273,525.00.
IMPACT ON COMMUNITY SUSTAINABILITY:
Having Frost Bank as a tenant in the Gravley Center brings a high-profile corporate presence to the Historic Downtown area. Frost provides banking and financial services for businesses, consumers and residents in the area; generates additional consumer traffic for Historic Downtown businesses; provides an ongoing revenue stream for the City; and serves as an anchor tenant at the northern end of Historic Downtown.
STAFF RECOMMENDATION/ACTION DESIRED:
Staff recommends City Council approval of a resolution ...
Click here for full text