Travis County Commissioners Court
August 12, 2008
Item 26
>> 26 is to take appropriate action on amendment to up lease for aa Austin retail corporation as lessor and the city of Austin as lessee in which the Travis County health care district will be receiving an assignment for the northeast community health center located in the springdale shopping center.
>> judge and Commissioners, I'm gary martin. I'm tasked to this particular matter to the Travis County health care district. So request comes for approval of this leasing transaction. We provided some bullet items to you and a copy of the actual lease which is entitled a third amendment of lease. And I'm here to answer any questions if that would help.
>> would this call for them to have any kind of public hearings before let the community know that this is going on so that we don't -- it doesn't come back to us later to reconsider.
>> this is on the existing facility. This is currently in a holdover lease. Now, the city of Austin leased this over 20 years ago at the springdale shopping center. It's been in holdover holdover t si since November of 2007. This has been to extend the existing facility for five years with an option to opt out or terminate early for years four and five. So essentially it's a transaction that's already taken place, contractual arrangement that's existed between that landlord, which is the teachers retirement system of illinois, and the city of Austin community care services department. And the reason the health care district is asked to approve and has approved and signed this document is that during that extended term, the transition of the health care district operations of this particular clinic as a fqhc will be transferred to the district operations at at that point the district would assume the obligations of the city of Austin to that landlord and be paying the rent directly. Woirks that amend the existing lease right now?
>> it's extending it.
>> it's called the third amendment because they had a second amendment right after -- the first amendment and the second amendment.
>> we have to act on it one way or the other?
>> yes. Essentially the authority is in the health and safety code, section 281.050 where the health care district has actually taken this particular action to approve this real estate traction transaction. Its involvement in this. Then under the statute it's brought by the board of managers of the health care district to the Commissioners court for approval.
>> move approval.
>> discussion?
>> judge, let me ask. Gary, I understand that the first page is probably just a cover page that you tried to bullet, right?
>> yes.
>> going all the way down to the bottom, it is planned for this clinic's operations to be relocated. Does that language --
>> that's nowhere in the lease.
>> it was just kind of paraphrased. That's being a little presumptuous, although maybe not, but may be given the fact that the new location has gotten to be so controversial. But it just -- this is pretty plainly stated. It is planned, but if that language is not --
>> I think in the interest of full disclosure, that is an accurate statement of what the board intends they are planning to relocate that service. There is a great deal of tension in the neighborhood about it, but I think in the interest of full disclosure, I think it's appropriate that that be included in our backup. Whether one agrees with with that plan or not. That's great that that is the plan going forward.
>> I didn't know -- you attorneys are better at that kind of language. There could be a better two or three wore put on the front of that thing that wouldn't be so -- that wouldn't get people as agitated hey, this is going to happen, versus saying, you know, there may be the -- we may have the opportunity to move this -- I've said what I need to say if you are comfortable with with it.
>> that's there to explain that it may not be that the health care district will require these facilities for the full five-year term of the extension, but there is a negotiated term for the early termination of that. There's a notice that must be be given 24 months prior to the term it will be terminated. That was essentially negotiated in order to allow for the siting and the purchase and the construction of a replacement clinic. And that's full disclosure.
>> okay.
>> any more discussion? All in favor? That passes by unanimous vote.
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Last Modified:
Tuesday, August 12, 2008 1:37 PM