Travis County Commissioners Court
Tuesday, November 29, 2011 (Agenda)
Item 32
>> item number 32, consider and take appropriate action on lease agreement at 700 lavaca and we indicated it may be taken into executive session.
I did have an opportunity to meet with the attorney on this matter and -- attorney holmes, and he expressed a desire to make a presentation to the Commissioners court and I told him I would have it on the court's agenda and we have it here today.
this afternoon when we convene in executive session to discuss the other items, we'll take this one in there also.
so if you would like to make a presentation, then the court members may have responses or questions.
>> thank everybody for the opportunity to come here and visit with y'all.
I own Austin suites.
it's an executive office suite business in the I would abouting that y'all purchased.
I'm going to give you -- give you a little bit of background.
Austin suites is the oldest executive office suite business in Austin.
it's been in business roughly 20 years.
if you don't -- if you are not familiar with an executive suite, we own a business and within that business we -- businesses come in and we take care of their entire business, answer their phones, their internet, their parking, their cable, any word processing, anything they might need.
it's basically a place you just come in, set up your business and go.
it's a very good for the city and for the county that the reason that we basically incubate new businesses.
our primary source of businesses, when new businesses are opened up, businesses in another city that want a presence in Austin.
they don't want to come here and have to hire secretaries and set up a whole office, buy copier machines and everything, so it's very convenient for them to come to executive office suite and have a presence there.
then as their business grows
>> [indiscernible].
we were over --
>> I think if we could get you to speak directly into one of those mics the static will go away.
>> we were over at the omni for about 15 years.
christy is here, who has been the office manager of Austin suites almost since the beginning.
we were over at the omni for about 15 years and at the time it was great, but over time it got blocked in.
there was a parking garage on one side got blocked in all of those views and on the other side a building blocked the views and over time the wear and tear on the building began to show.
and so we knew that when our lease was up we were going to take that opportunity to try to find a new space.
this was a very big venture on our part because it's not just our business.
I also own a law office.
and if it were just my office, I could just tell my employees we're moving, you know, pack up your stuff, go to a new job, but it's not that simple for an executive office sweet business because we have people within our business and they have usually short-term leases.
usually anywhere from six months to a year.
we've people who have been there years and years and years and they just keep renewing.
but we don't have long-term leases to where people are free to come and go and it's not so easy for me to say, hey, we're moving our business.
this of the a -- you know, it was a great concern to me and christy when we were moving the suites because, one, you are going to have some people who are not doing too well anyway and this is a great opportunity for them just to work out of their home or close their business down.
you have some people that are going to start -- maybe they are doing really well and they are looking at moving out of a executive suite and getting their own space.
so moving a business is a big venture.
so we went out and we started looking around and we found the building after searching for about six months, we found the building at 700 lavaca, which is the building y'all eventually bought.
it seemed ideal for what we were doing because it had beautiful views, close to the courthouse and we have a number of lawyers, I have mostly downtown people.
getting people to move was not easy.
one by one we had to explain to people that because they are going to have to redo stationary, tell their customers they are moving.
we one by one took people down over about a four-month period, took people down to the new building showing them what it was going to be like.
we committed that we were going to put enough money into this building that it was going to be -- the end of this floor that it was going to be beautiful.
because of, you know, a lot of these people have been with us a long time and one because of the service we provide, we kept most of the people did move over.
I would say two-thirds of the people moved over.
about a third, some of them left because they were not doing too well, were behind on their bill anyway, some people stayed in the building that we were at.
but you know, it was a big move.
that move happened about two years ago, about a year before you all bought the building.
when we were negotiating out the terms of the lease, there was another floor -- we're on the 14th floor.
the 15th floor had a huge space that was still available and that was a very big concern to us at the time.
should we just take the 15th floor now or should we wait until we get more people in, get it well established.
well, at that time to secure that, we put in the lease that we would have the first right on not only 15th floor but on any floor in the building where if something else came up so that 15th floor would always be available and if they get somebody in that's interested, we would have the first right to say no, we want to act on that.
well, we got more people to come over than what we anticipated and we started filling the building up at greater speed than what we anticipated.
so we were pretty much 100% full and so we committed to take -- we notified the owners of the building that we wanted to take the 15th floor.
for some reason we never heard anything back, which caused me a lot of -- some concern.
they were eager to lease the 14th floor, eager to lease the 15th floor and now all of a sudden they are not responding.
I wrote them probably three or four times stating -- wrote them an email indicating we wanted to take the 15th floor.
then we get notified Travis County is buying the building and now we see why they wanted to lease it so bad that they put a right of first refusal in our lease to not even respond to them.
well, before y'all were able to buy the building, you had to put -- I can't remember what they are called, but you submit them to every tenant and basically say are y'all happy, is everything being fulfilled.
when that was submitted to me I said I'm not going to sign this and I wrote a letter stating our end of the lease is not being fulfilled and the biggest reason was we under the lease were allowed to have the 15th floor and it's not -- we've already given them notice, and for some reason it's not being given to us.
we heard nothing back from that.
so Travis County was on notice before we -- you ever purchased the building that we have contractual rights to the 15th floor.
after we were notified that Travis County was going to buy the building, I called doris, who is the office manage oh, I wrote her and I wrote the people with Travis County numerous times stating to them we have already told the old owners and now we're notifying the new owners that under our contract we want the 15th floor.
I don't receive a single response.
not an email, not a letter, not a card.
and this goes on for about nine months, I would estimate.
then all of a sudden we get notice that Travis County is taking over the 15th floor.
which just completely surprised us that we have a contractual right.
it's right next to or floor.
when you have an executive suite, people are going to come up to the main lobby where we are at and ask for customers.
we are going to say we want a.
b, c, company and we're going to take them from there and their business owner or -- is going to come and get them and bring them to their floor.
to bring them to our floor the next best thing is the floor next to it and it's the top and had incredible views.
the biggest part, it was almost perfectly situated for our need.
it was built out almost exactly the way we needed it.
it had open spaces that we already had decided to deal w it would take so little buildout.
so it was just ideal.
well, as soon as I got notice that Travis County is taking over the 15th floor, I wrote them no, no, no, no, no.
we have a contractual right -- I wrote y'all actually.
we wrote the old owners, the new owners exercising that right and you need to stop movement on to the 15th floor.
that didn't happen.
next thing I was notified it's going to be ended at such and such date and again I got no response.
I finally wrote the county, and I think at this time I'm not sure if john hilly was the representative, whatever it was, I wrote them and said I am going to seek legal redress.
it is my intent at this point if you continue with the 15th floor, I'm going to go to court, seek an injunction.
that that's stopped pursuant to my contractual rights under the lease.
for the very first time I received a call, I received a response from anybody from Travis County or anybody from previous owner.
it took that letter before I got anything.
well, I basically was told that the 15th floor is done.
what about my contract?
it's done.
we'll have to find something else.
we started looking on another floor.
and is it the 10th floor.
it's not as nice, two, it's not next to our floor, three, it's not the top, which is nice to be at the top and has the most incredible views, and four it's not right next to our floor which makes it more convenient for our office.
if our floor is the 14th floor and people come in and they are going to be on the 10th floor, I'm far away from the main reception area.
but trying to make lemonade out of lemons, we started looking at the 10th floor and seeing what we can do.
then while that starts getting pending -- and it was all over the newspapers that Travis County bought our building.
that's how we learned about it.
right away people started getting concerned and expressing concern that, you know, what does this mean, what are we going to do.
I have somebody who is in my suites now said we were in a Travis County building, got bought by Travis County.
all you have to do is look at Travis County building, you know, we're hearing this on all sides.
we're assuring them because we're being assured.
nothing is going to change.
it's all going to be the same.
whoa, whoa, don't -- so they are in my executive suites and they don't see any changes.
it all looks okay.
if anything, y'all done some things to the lob that I improved.
the lighting, you are making it more energy efficient, but they say and nothing is going to change because at that point aesthetically nothing had changed.
well, as time has gone by, things have changed and they are seeing the changes.
the first thing was that a cafeteria is being built there.
I personally thought I don't care about a cafeteria.
mine wasn't shared, a lot of people were saying, several people came to us saying what's this cafeteria business.
we know about these county cafeteria.
we're not really sure.
we're assuring them it should be fine.
and that was just the first step.
well, I'm now at the point that we -- we wanted more space, we've needed more space, but I don't -- I'm concerned -- now it's past the point of concern.
I see Travis County not complying with the lease I already have.
and so if this is going down, am I going to add more to it to put more people on a sinking ship.
because and when I say a sinking ship, we were 100% full when Travis County bought the building.
and we have been through some hard times.
you know, we -- Austin suites -- I've seen executive suites come and go in this county.
some major, some major national companies have filed bankruptcy and have left the county and have left the city and Austin suites has thrived through it all.
we went through hard times where in 92 through that down town, 92, 93, 94, I was losing money and putting money in the business personally 10,000, 15,000 a month, 10,000 a month and I weathered those storms. And you know, this was a big deal to me was, you know, put all the sweets in position that we're in the best location and the best situation possible.
so I mean we have been through ups and downs and stayed and succeeded through it all.
now we make this big move and we're doing great.
in a time when -- you know, this was right this now downturn.
and we were -- because of the customers we already had, the quality of the service that we provide which I hear all the time, and the views and we put $700,000 into this floor.
not only $700,000, but there was an accounting firm there before us who it had marble, marble in the -- in the -- in the lobby area, beautiful receptionist.
we were able to build upon about a million dollar floor.
we took what we had which was already beautiful and put about $700,000 into it on top of it.
>> that's the 14th floor.
>> that's the 14th floor.
>> I believe we did that to make I believe the 14th floor is one of the most beautiful floors in Austin.
it's a very beautiful floor and I think that's why we were doing very well at a time when the economy wasn't doing well.
I also spent about $250,000 moving my business over.
that included moving companies to move -- I had to move every single business.
and you can imagine the efforts that takes.
you are moving other people's businesses.
I had to -- rewiring the floor, redoing the internet, the cable, redoing everything.
I spent about $250,000 to move from where I was to there on top of about $700,000 put into the floor to make it a beautiful floor.
so that's why I believe we were, you know, 100% full and, you know, people are immediately because -- you know, they are hearing it from other people on the floor that y'all are moving people out.
you bought the building for a Travis County building and that people who -- we know a number of people that had leases there and they are moving out.
so my people are coming to me and they are rumbling, they are very concerned.
but at that time they are not seeing much -- they are not seeing it.
it looks like the same building.
now, why do I say that I'm already concerned that Travis County is already not living up to its end of the lease.
the first is the 15th floor.
that's a big one.
I was entitled to the 15th floor.
it would have cost me much less to move to the 15th floor, and the only reason I did not take the 15th floor to where y'all wouldn't have an opportunity to get it was I put in the lease I had the first right.
I've not assured that in my lease, y'all wouldn't have gotten the 15th floor because that was always our intent.
the second thing was the building signage.
we put -- we wanted to have Austin suites on the outside of the building.
we wanted Austin suites on the I would abouting to where anybody driving by would see Austin suites.
that was a big negotiating point when we took the building.
the building in the back and forth and back and forth would not agree to that, but agreed they would put a stone column or some kind of beautiful column outside of the building and we would have the first name on it, Austin suites.
they had some concern and they did not know what legally on the corner of a downtown building they would be able to put out there.
they didn't know if there were restrictions or what exactly was the technicality.
so they protected themselves by saying that -- that if there's some technicality that they can't, that they can't, but otherwise they will.
the lease reads landlord shall meaning landlord must use commercially reasonable effort to secure approval and construct the monument sign.
should the landlord obtain all the necessary approvals and ultimately construct a new monument, then tenants shall have the exclusive right to -- the nonexclusive right to have the name placed on the monument sign.
this was a tradeoff between us having our name to building so everybody driving by would see Austin suites, okay, a granite sign with some monument sign outside.
from the beginning I've been saying where is this sign at.
we've been notified by Travis County that we're not doing anything on this.
that's a no go.
we're not even looking into what would need to be done to construct it or anything that we're not doing the sign.
to me that's a clear breach of the lease on top of the 15th floor.
the other thing is our -- our lease at a number of times throughout it says that this office -- this building will be maintained as, quote, a first class office space.
there's a number of nonspecific things where it says, you know, renter or lessor will maintain as a first class office and first class office space, but specifically in years it says that -- in yours it says that -- I thought I quoted it in the z -- I thought I quoted it in my sheet, but I specifically states in there that the office will be maintained in a first class office building.
I think I have it right here.
>> [inaudible] okay, well, the first thing that is completely inconsistent with the first class office space is the lobby.
and now we have learned that Travis County the putting the Commissioners court in the lobby.
you would never -- frost bank, 301 congress, any of these first class office spaces would never put the Commissioners court in their lobby.
you -- that has all kinds of implications and all kinds of concern to me.
one is that when people come in and they want to put their business in my business, they don't want to put their business in a Travis County building.
they want to put it in a first class office.
to put the Commissioners court -- and I don't blame y'all for putting the Commissioners court in the lobby of a Travis County building.
it's clear that that's what this building is.
it's -- it's bought for and it's being designed for and it's being going to be used for a Travis County building.
I already talked about the cafeteria.
you know things like metal detectors.
I've asked for assurances that there aren't going to be metal detectors because that would be a big problem.
and then just signage and identification of the building.
where -- where the building -- my purpose was was going to say Austin suites, surely as time goes by it's going to be identified as a Travis County building.
it's going to be -- and I don't know exactly what the plans are because -- you know, y'all are early in this, but the -- it's just like the outside of this building.
you come into this building.
it is clear this is a Travis County building.
the only thing y'all are doing is moving all your operations over to the building where I have a lease.
so there -- they are completely inconsistent and I will tell you that legally if, you know, one on the legal side, proofing the inconsistencies, but two on the practical side.
y'all can come to me and say we're going to do this and that but I know from the people in my suite, I'm hearing it, that they do not want to office in a Travis County building.
so we got a problem with the signage.
the other problem is a multi tenant building.
a first class office building where I brought my business to is a multi tenant business.
and there's a number of reasons why that's important.
number 1 is because people there, you know, when you are in a building and you own your own business, maybe you own an accounting firm or you own an advertising company or you own -- you want to get business from the -- from the building that you are in.
you know, you want to talk to people coming in and out, give them a card and that's -- for me particularly I would say about 25 to 30% of my business comes -- has always came from people in the building.
that they will leave their law office, go to start their own office and they don't want to -- I'm in the same building so they don't have to change where customers come so they come to my suites.
that they break away from a -- their company or down size.
they down size to the point -- a big part of my business is in a multi tenant floor.
that -- that allows -- you know, I've always had the manager of the building to tell people, well, there's an executive suite here and that's another big concern that I have.
to be honest with you, this is a nightmare for me.
I moved my business over one year before y'all buy it.
like I said, if this was my law office, and I have secretaries and receptionists and I've got a ten-year lease and you are putting -- you are putting a Commissioners court outside, I can just tell them this is where we're at, this is where I'm staying.
it's not that simple.
I just moved my people and they've been very concerned since they heard about the Travis County building and now as things are developing, I'm already seeing going from 100% occupied to, you know, it's going down already.
>> what is it today?
>> probably about 88%.
>> and what's the average, say, during the last five, ten years?
>> between 90 and 95.
>> okay.
what relief do you request, mr. Holmes?
>> well, I would have never moved Austin suites had I known that this is about to become a Travis County building.
I think the two are completely exclusive.
specifically for an executive office suite business.
I have a ten-year lease with a five-year option to renew and what I don't want to see is that my -- you know, that my business goes down from 80, lower, lower, and finally when I move it I don't have the tenants to move it.
>> do you want more space or do you want to leave the building?
that's what I'm confused about.
>> at this point I don't believe that Travis County has and I don't believe that they will or can comply with the terms of the lease.
and I think that Travis County should buy us out of the lease and so we can -- and move to another viable downtown building.
>> what are the types of businesses that you have in Austin suites?
I mean are they -- lawyer, accountant?
>> we have lawyers, we have accountants, lobbyists, people with advertising firms.
>> engineers?
>> we are really diversified.
>> engineers?
financial analysts?
>>
>> [inaudible].
>> because you know the folks we are moving into the building from Travis County are engineers, accountants, lawyers, financial analysts and urban planners.
that pretty much describes the population of county employees we're moving in.
>> well, we are very diversified in who our customers are.
>> will you -- in your letter to the previous owners and I guess us, you were asking for the entire 15th floor or part of it?
>> well, at that time about -- it was probably a little less than half was available and that's what we were exercising our right under the contract on.
it was the part that was available.
>> could you make -- I'm assuming there is a right of first offer request made in writing.
what was the --
>> that there was?
>> yeah.
what was the date of that?
my understanding from the contract is that it's a right of first offer request for any available space in the building, not specifically 15.
>> correct.
>> so what date was that?
>> I would say -- I don't have that because it would be in my file with the other -- with the other owner before they sold it.
but at least six months before y'all bought it.
I would say six months after we signed the lease.
y'all bought it -- Travis County bought it about a year after we hadco signed our lease.
about six months after we signed our lease we notified the right on the 15th floor.
>> did you get anything back in writing with regard to what space was available in the building to you?
>> I knew the 15th floor watts available because it was available when we signed the lease.
>> did you get anything in writing to your request of first offer.
>> no.
>> since I think -- nobody responded, not only to my letter, to my emails, to my calls I got no response.
that's confused me.
right about that time, you know, a little after that we learned that Travis County was buying the building and wanted all the office space and now it was becoming clear what was happening.
>> this monument signage, so you understanding was that all of the tenants in the building would be listed on there?
>> no.
>> just one sign, Austin suites?
>> no, I think other major tenants -- I don't know how they would determine the criteria.
but every suite wouldn't be on it.
it's like when you go to some buildings the major tenants would be on it.
and we -- we at the time were the second largest tenant.
if we took over the 15th floor we would be the largest and we are now one of the largest.
we are one of the largest tenants in the building.
>> we can respond to a request to buy you out, but it is very general and we can discuss the general request in executive session with legal counsel today.
but assuming that we're interested in that approach, we will need a number.
I can tell you that it is a request of first impression.
and it seems to me if you invested a million dollars or so to enter the building or to relocate there, then our challenge ought to be to make sure that you -- that we are as good a landlord as you had a right to anticipate when you moved in.
I don't know that being a public entity automatically means it becomes a second or third class building.
but I think that there are things that you have to do to retain first class status.
and we ought to be interested in doing those anyway.
and as to some of these things like signage, metal detector, we should be able to work through those, but if your drop dead position is buy me out, it simplifies it for us.
and if we don't have a number, it's even more simpler.
it's even simpler.
>> at this point I don't expect the county to make a decision.
I'm not asking for a decision today.
is what I am doing is bringing y'all up to where we are today, and you are right, I mean you can't make a decision with having no idea where we're going at this point.
>> but should we send appropriate county staff to meet with you and try to resolve the issues or should we just wait for a number?
>> well, quite frankly I don't even know what that number would be to move my suites.
I have a general idea from what it cost to move from where I was to here.
but at this point I'd like to -- I'd like to give the county something more, you know, to put their hands around.
I guess while I'm here I would like to know what is the county's -- because, you know, a lot of questions I've been asked I don't get assurances.
like metal detectors.
I hear at this point we're not trying to -- and the problem I have is at least a 10 year if not a 15-year proposition if I stay here.
>> there will be some metal detectors in some parts of the building, I assure you, but should not be metal detecters that interfere with your tenants, their customers, et cetera.
it's a big building.
I mean there are ways for us to live there peacefully, right?
now, our goal is not to make life difficult for you, but at the same time it is a public building.
and we did acquire it for public use.
and we did acquire it thinking we would move the Commissioners court room there and that residents who paid for it and own it would have access to different parts of it.
but I wouldn't think they would have access to the floors that you occupy.
so in my view you should be able to conduct business in the same way that you have since you've been there.
and our goal, our job as landlord is really to help you achieve that.
>> well, I will tell you, you say that is correct but it wasn't acquired for public.
this building was not acquired for public use.
>> by the county?
>> it was acquired by to the.
>> for public use, though.
>> I guess I would say it andy acquired for private use.
>> we acquired it for the people, basically.
with the understanding if there were tenants there with leases, and our intention from the beginning was to honor those leases because we were legally bound.
and those with the options on additional space, we would honor those.
and got an a g opinion saying we could.
and so, I mean I don't know that we can do more as a landlord except maybe meet with you further and try to address some of those issues o the metal detector, seems to me we can tell you how they would be installed in a manner that wouldn't interfere with you or your tenants or their customers.
>> one of the biggest things I see already, if it's my understanding when you walk through the lobby, it's going to say Commissioners court on the glass with the star on the --
>> that is not a violation of the lease.
we want to keep and please our current leaseholders, absolutely.
because while we purchased the building for public use, we recognize that there's more square footage than we need currently.
that's why we want to keep and please our current leaseholders and honor your ability to expand.
but I don't believe that a Commissioners court or any of the other services lines, public service lines that we're moving in are substantially different from what Austin suites or the other current tenants offer.
like I said, we're moving in, you know, engineers, accountants, lawyers, urban planners, financial analysts, and frankly the public who uses those services and frequents those offices is very similar to the public that's currently frequenting your offices.
and the other offices in the building.
I don't see it as incompatible.
>> well, the problem is I am having to constantly lease offices.
it's a monthly thing.
we always have people coming and people going.
and it's like this building.
would you want your -- am I going to be able to have somebody come in, if I had an executive suite in this building, where we walk in and see a Commissioners court, it --
>> this building at one point did have lawyers and accountants, private offices in it.
that was -- the origins of the building, I don't believe the county built it, we purchased it.
>> insurance agencies.
>> a pre-existing office of private insurance companies.
>> I think you just made my point.
at one point it did have lawyers and accountants and stuff in here.
as a county buys a building and takes it over, you don't want your law office in a county building.
>> we were incompatible, I believe that we purchased it and over the course of time --
>> and we didn't pay anybody to move.
>> and we didn't pay anyone to move, and it does sound like your occupancy rate is rather health eye is what?
>> is rather healthy f.
>> we were at 100%.
>> questions and issues you have are set forth in your memo?
>> yes.
>> should we try to address them for you?
I mean if we're wasting our time, don't have us do it.
but if you are interested in getting the answers, I think we ought to.
>> well, while I'm here, what is the plans for, say the outside of the building?
>> we will give you written answers to those if it's in here.
now, I wanted to give you a opportunity to come make your statement and I think we did.
>> and I appreciate that.
>> but in terms of these questions, we should be able to address them for you.
and the Commissioners court will sign off on them so they would be as concrete as a public entity can be.
>> well, and this is what I spent -- especially after we looked at the 10th floor.
over the next month, this is what I've spent a lot of time agonizing over, going back and forth over what do I do at this point.
and if --
>> we want to help you address that agony.
>> and I have come to the solutn that Travis County -- and if it was just me, still the office space.
but the question is do people want to come and put their business when they can go to any executive suite in a Travis County building.
and we're hearing it.
we're seeing it that they are inconsistent.
>> should we address your request to be bought out today?
we can do that after discussion with legal counsel this afternoon and give you something in writing.
that's a two or three line letter, I think.
>> well, if you can do that without me providing you the specifics, yes.
but at this point if you want to table that to where I can get a better idea of -- you know, I don't even know at this point I haven't looked at other space in the city.
I haven't looked at -- I'm kind of at the beginning of this.
but I think that's what's going to have to be addressed.
y'all spent $40 million on the building with I believe it is, the numbers I'm hearing is after you remodel and everything it's $100 million for the county to buy that building.
I think you have Austin suites there.
if it was a law office, I would just wait my lease out and move then, but that's what I would do, I would move at the end because I wouldn't want it in a county building.
but I have to move with my people inside now and new people that have to come.
and I don't think you can operate it as a first class office building and a county building.
>> it will be difficult for to us take that as your damage, that it's now a county building.
you see what I'm saying, from a lawyer perspective?
>> no, I don't agree with you.
I think that you can look at a county building --
>> defactor because it's now a county building, it is therefore a damage to you.
>> no, no, everything was fine until you start doing things like putting the Commissioners court in the lobby.
the lobby is the building.
>> previous to us purchasing it, it had been a vacant bank space for at least how many years?
>> it's one thing to put a bank lobby there.
>> a vacant one.
>> does that mean you can put anything there?
just because it's vacant you put any business there.
>> it would be preferable to a vacant lobby space.
>> what you see as negative, we see an improvement.
kind of like cafeteria.
depends on what's served there.
now there's a quick sandwich place but we had in mind something more substantial.
there will be a lot more people in the building but I don't know that you had a right to expect the build to go remain half empty during your ten-year lease.
we really basically are sort of at odds as to our perspective and yours.
we can answer your question and we'll do that after we discuss this matter in executive session with legal counsel today.
>> okay.
>> and you let us know after you think about it whether we should go through the memo that you submitted to us, pull out questions and try to address them for you.
because if so, we will.
>> well, at the same time there are questions.
like what will happen to the outside of the building?
>> I tell you what.
go through here and highlight those for us and any additional questions you have like you just mentioned.
get those to us in a separate document and we'll try to address all of them.
if the answers matter.
because it will require some work and some sort of thinking through some stuff.
>> but if you really just want out of the building, then that becomes a moot point.
>> well, it becomes a moot point if I get out of the building.
>> there is your getting out of the building, there's us paying you to get out.
now, they are different.
see what I'm saying in paying you to get out is a lot more difficult than us basically taking the lease and tearing it up and both of us having a good time doing it.
>> what about the fact you all took the 15th floor that I had put out notice that I was taking.
how do you remedy that?
>> there are other floors in the building.
there's other space in the building that we control and can make available.
>> it clearly shows an intent that Travis County is going to act in its own accord against the rights of the contractual rights of other tenants in the building including their biggest tenants.
that to me, that alone, you knew I wanted the 15th floor, I had a contract that gave me the 15th floor.
>> you have a contract for available space and that's I think a fact question.
>> it was clearly available.
that's why I put them on notice.
that's why I put I was taking it.
it gave me the right to any available space.
that is broader than saying I have the right to the 15th floor.
we wanted it broader because what if we outgrow the 15th floor and we want more.
we had the first right of any available space in the entire building.
so that doesn't limit it.
we wrote it to make it greater.
the fact -- that alone, you've now put whoever in it.
you are telling me we're like any other, we're going to abide by this contract, we're going to take out the people in the is ath floor and you can have it, then I'm all ears.
that's one of the things I'm so upset with because it was vacant.
it couldn't have been before I bought the building I consistently notified Travis County that I wanted the 15th floor.
I've continued to notify them that I want the monument sign out front.
when I say look, this is different, this is Travis County who is now owning and moving this forward as a Travis County building.
when you say --
>> can you provide us with some copies of that written communication?
>> of what?
>> of the written communication.
I would like to see those.
>> I would to.
I hear what you are saying and I too am concerned about that fact question, about how that all happened and the date that you provided the request for first offer and what the sequence of events were and to whom and that kind of thing.
because I totally hear you on that.
with regard to the monument, the lease says it's a potential monument.
although I do see the language that you quoted in your letter that the landlord would use commercially reasonable efforts to secure approval, but it does --
>> it actually doesn't say will, it says shall.
>> but that is qualifying language after the first statement which is that it's -- the landlord is currently in the process of planning and designing a potential new monument.
>> that's right.
>> so I see what you are saying, but on the flip side you say you don't want it to say it's a Travis County building.
I'm not sure which it is.
because, of course, any kind of monument will also say that it's a Travis County building, but that sounds like that's something you don't want.
right?
am I hearing correctly?
>> put that on your list.
>> no, you aren't.
>> I'm sorry, we're out of time.
thank you, though.
we'll get your response to the request for buyout and if you let us know whether you want us to try to answer those questions, we'll try to do that for you.
>> at this point I'm probably going to get back with you probably in the next week.
thank you.
>> john, you understand that?
>> I do.
>> okay.
we will call up item number 32 in executive session this afternoon when we take up the other executive session items. We have completed all of our open court items. Move that we recess to 1:30.
>> second.
>> all in favor?
that passes by unanimous vote.
The Closed Caption log for this Commissioners Court agenda item is provided by Travis County Internet Services. Since this file is derived from the Closed Captions created during live cablecasts, there are occasional spelling and grammatical errors. This Closed Caption log is not an official record the Commissioners Court Meeting and cannot be relied on for official purposes. For official records please contact the County Clerk at (512) 854-4722.
