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Austin Council Approves $8M Lease for East Side

AUSTIN-It's finally a done deal between the city and Austin Revitalization Authority. Term changes snag an OK from council for a 10-year, $8-million lease for 22,000 sf. Construction starts in the summer.

By Tim Green | Updated on February 08, 2002

AUSTIN-The Austin City Council approved a deal that put its housing department in an East Austin building for 10 years at a cost of about $8 million. The vote came Thursday, a week after the council sent it back to city staff for revisions.

The housing department will get more space, 22,000 sf, while the building’s owner, the Austin Revitalization Authority, gets a long-term tenant for its 57,000-sf building along 11th Street.

The council held up the deal last week, questioning whether the city was getting a good enough deal. With revisions reached during the week, the city leases fewer parking spaces (to encourage employees to use public transportation) and changes some terms for the lease. For example, the city can sublease space with the building owner’s approval and it has a five-year option to renew at 95% of the market rate at that time.

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