Posting Language
Title
Authorize negotiation and execution of an amendment to the lease agreement with Pre Summit LLC, a Texas limited liability company, on behalf of Austin Water, to extend the term of the lease agreement an additional four months until March 31, 2027, the lease of approximately 8,850 square feet of office and laboratory space for the Laboratory Services Division of Austin Water, located at 14050 Summit Drive, Suite 121, Austin, Texas 78728, for a total amount not to exceed $101,570. Funding: $101,570 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Water.
De
Lead Department
Austin Financial Services.
Fiscal Note
Funding in the amount of $101,570 is available in the Fiscal Year 2026-2027 Operating Budget of Austin Water.
Prior Council Action:
May 22, 2025 - Council approved an 18-month lease renewal with Pre Summit, LLC, for the Laboratory Services Division of Austin Water.
August 20, 2015 - Council approved a 120-month lease renewal with BT1 Austin, LLC, for the Laboratory
Services Division of Austin Water.
January 31, 2008 - Council approved a 60-month lease renewal with Equastone Austin I, LP, for the
Laboratory Services Division of Austin Water.
August 1, 2002 - Council approved an 84-month lease with Lend Lease Real Estate Investments, Inc., for the
Laboratory Services Division of Austin Water.
For More Information:
Brandon Williamson, Austin Financial Services, 512-974-5666; Michael Gates, Austin Financial Services, 512-974-5639; Leslie Jansen, Austin Water, 512-972-0107.
Additional Backup Information:
The current lease agreement expires November 30, 2026, and the proposed lease amendment is for additional time at this location, 14050 Summit Drive, Suite 121, Austin, Texas 78725, to continue conducting water quality testing before moving to the new City-owned facility at 712 Huntland Drive, Austin, Texas. Austin Water has occupied this space of approximately 8,850 square feet since May 2003 as a water quality testing laboratory.
The proposed base rent during the four-month extension reflects the renegotiated holdover rate under the current lease of 150% of the current base rent for the first two months and 125% of the current base rent for the next two months. The current operating expenses are estimated at $5,882 per month.
The following table summarizes the base rent and operating expenses.
|
Term |
Monthly Base Rent |
Estimated Monthly Operating Expense |
Total Monthly Rent |
|
12/01/2026 - 12/31/2026 |
$21,284 |
$5,882 |
$27,166 |
|
01/01/2027 - 01/31/2027 |
$21,284 |
$5,882 |
$27,166 |
|
02/01/2027 - 02/28/2027 |
$17,737 |
$5,882 |
$23,619 |
|
03/01/2027 - 03/31/2027 |
$17,737 |
$5,882 |
$23,619 |
|
|
|
Total (4 Months): |
$101,570 |
The Strategic Facilities Governance Team has reviewed and approved the proposed lease amendment.