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Item 4CCity of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork M E M O R A N D U M August 11, 2026 TO: Alison Ortowski, City Manager FROM: David Miller, Director of Community Services SUBJECT: Approve the renewal of an off-site lease of office space with KRG Town Square Ventures. Action Requested: Approve the renewal of an off-site lease of office space with Background Information: KRG Town Square Ventures for a term of 3 years beginning January 1, 2027, and ending December 31, 2029. City of Southlake Library staff have been utilizing 2,402 square feet of usable space leased from KRG Town Square Ventures for the past three years. This leased space has allowed Library staff to expand into an office space located within proximity to Town Hall resulting in increased efficiency and continuity of operations due to a lack of adequate administrative space within the current library footprint. The current space is designed to support operational and managerial functions of the library and includes seven individual offices, a conference room, and a shared kitchen/break room. The office spaces primarily accommodate seven full-time library staff members whose responsibilities include administration, program planning, collection management, community engagement, and operational oversight. In addition, one shared office space is utilized by library technicians, while a dedicated workspace provides flexible accommodations for part-time staff who require temporary workspace for training and projects. The conference room serves as a collaborative space for staff meetings, professional development, training activities, and departmental planning and collectively the Item 4C Alison Ortowski Meeting Date – August 18, 2026 Page 2 of 2 City of Southlake Values: Integrity ♦ Innovation ♦ Accountability ♦ Commitment to Excellence ♦ Teamwork Financial Considerations: administration area has provided a functional workspace that greatly enhances the team’s ability to support library operations, staff productivity, and service delivery to the Southlake community. Staff were originally presented with a 5-year lease option and negotiated to a more favorable 3-year lease term. Staff will explore options to relocate library staff back to a City owned facility at the end of the 3-year renewal term. Lease renewal is for a term of 3 years at a rate of $9,897.16 per month for months 1-12 (6% increase), $10,293.05 per month for months 13-24 (4% increase) and $10,705.05 per month for months 25 through the end of the lease term (4%). Funding for year one of this term is included in the proposed FY2027 operating budget. This item is linked to the City’s Strategy Map by meeting the corporate objective B1 achieving strong outcomes through continual evaluation and pursuit of better practices that improve core business operations. N/A The agreement has been reviewed by the City Attorney. Alternatives include: ▪Approve as presented ▪Approve with input as desired ▪Decision not to approve Strategic Link: Citizen Input/ Board Review: Legal Review: Alternatives: Attachments: Fully execute original lease First amendment to original lease Staff Recommendation: Approve the renewal of an off-site lease space with Kite Realty Group DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189Senior Vice President of Leasinggregg poetz DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 DocuSign Envelope ID: 7A157DB0-FA02-4356-998E-79178257D189 1 FIRST AMENDMENT TO LEASE THIS FIRST AMENDMENT TO LEASE (the “First Amendment”) is made by and between KRG TOWN SQUARE VENTURES, LLC, a Delaware limited liability company (“Landlord”), and THE CITY OF SOUTHLAKE, TEXAS, a municipal corporation (“Tenant”) as of the date of last execution hereof by, and delivery to, Landlord and Tenant (the “Effective Date”). WITNESSES THAT: WHEREAS, Landlord and Tenant are parties to that certain written Southlake Town Square Office Lease dated as of November 10, 2023 (the “Lease”), pursuant to which Landlord let and demised to Tenant, and Tenant leased from Landlord, certain retail space consisting of approximately 2,762 square feet (the “Demised Premises”) in the shopping center commonly known as Southlake Town Square located in Southlake, Texas (the “Shopping Center”); and WHEREAS, Landlord and Tenant now desire to amend the Lease upon the terms and conditions more particularly set forth herein. NOW, THEREFORE, for and in consideration of the mutual covenants and agreements set forth herein and in the Lease, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1. Incorporation of Recitals and Defined Terms. The foregoing recitals are hereby incorporated into this First Amendment and made a part hereof as though set forth herein verbatim. Any term used herein which is not specifically defined herein shall have the meaning ascribed thereto in the Lease. 2. Demised Premises Accepted By Tenant “As-Is”, Etc. Tenant acknowledges and agrees: (a) that Tenant has been in occupancy of the Demised Premises; (b) that Tenant is familiar with the Demised Premises and accepts the same in its current “AS-IS/WHERE-IS” condition, (c) that Landlord has no responsibility or liability for making any renovations, alterations or improvements in or to the Demised Premises (except for on-going maintenance obligations, repair obligations, or any other obligation of Landlord expressly set forth in the Lease); and (d) that all further renovations, alterations or improvements in or to the Demised Premises, if any, are the responsibility of Tenant and shall be undertaken and completed at Tenant’s expense and in accordance with the provisions of the Lease. Landlord agrees that it shall leave the existing conference room table in place provided same shall at all time remain the property of Landlord. 3. Lease Term. Notwithstanding anything contained in the Lease to the contrary, the Lease Term is hereby extended for a period commencing on January 1, 2027, and ending on December 31, 2029 (the “First Extended Term”). Tenant acknowledges that it has no right to extend the Lease Term beyond the last day of the First Extended Term. 4. Minimum Guaranteed Rental. During the First Extended Term, Tenant shall pay to Landlord the following minimum guaranteed rental: 2 First Extended Term Lease Year Amount Per Square Foot of Floor Area 1 $43.00 2 $44.72 3 $46.51 5. Right to Relocate. From and after the Effective Date the parties agree that Section 28.14 of the Lease shall be deleted in its entirety and replaced as follows: “Landlord shall have the right at any time to relocate Tenant to other premises (the “New Premises”) in the Shopping Center. Landlord shall give Tenant at least thirty (60) days written notice of Landlord’s intention to relocate Tenant to the New Premises (the “Relocation Notice”). Landlord shall deliver the New Premises to Tenant in substantially the same size and condition as the Demised Premises were on the date of the Relocation Notice, all at Landlord’s sole expense. If the New Premises is smaller than the Demised Premises, minimum guaranteed rental and all charges based upon pro-rata share shall be adjusted accordingly. However, if the New Premises is larger than the Demised Premises then minimum guaranteed rental and any charges based upon pro-rate share shall continue to be based on 2,762 square feet. Landlord shall have the right to reuse the signage, fixtures, improvements and alterations used at the Demised Premises. Tenant shall not be required to vacate the Demised Premises prior to the date that the New Premises have been delivered to Tenant. If Tenant does not vacate and surrender possession of the Demised Premises to Landlord in the time period specified by the Relocation Notice, in addition to all other liabilities and damages to which Tenant shall be subject by reason thereof, Tenant agrees to indemnify Landlord from any loss that may be imposed upon or incurred by or asserted against Landlord arising, directly or indirectly, out of such action. Landlord shall also have the right to specific performance with respect to Tenant’s obligation to surrender possession of, or cease operation of its business at, the Demised Premises. Landlord’s election to insist on specific performance in such event shall not be construed as a waiver or relinquishment of any provision, covenant, agreement or condition on the part of Tenant to be performed or of any other remedy that Landlord may be entitled to under this Lease, at law or otherwise.” 6. Landlord’s Insurance. Notwithstanding anything to the contrary set forth in the Lease, Landlord’s insurance may be procured and or carried through third party insurance companies, captive insurance companies, programs of self-insurance or blanket policies of insurance or any combination of the foregoing. 7. Brokers. Tenant does hereby represent that no real estate brokers, other than KRG Management, LLC are involved in the negotiation and execution of this First Amendment. Tenant shall indemnify Landlord from any and all liability for the breach of this representation and shall pay any compensation due to any broker or person who may be entitled thereto, other than KRG Management, LLC. 2 8. Ratification of Amended Lease. Except as otherwise modified or amended by this First Amendment, all other terms and conditions of the Lease shall remain unmodified, unamended, and in full force and effect and the Lease shall continue to be and remain in full force and effect in accordance with its terms, covenants, conditions and provisions. In the Lease, or any instrument, document or other consideration executed or delivered in connection therewith, any reference to the “Lease,” shall be deemed and construed to be a reference to the Lease as amended hereby. In the event of a conflict between the terms of the Lease and this First Amendment, the terms of this First Amendment shall control. 9. No Landlord Defaults. Tenant has no knowledge of any default by Landlord of any of the terms or conditions of the Lease, as amended, as of the Effective Date and knows of no facts which, given the passage of time, would constitute a default by Landlord under the Lease. 10. Entire Agreement. This First Amendment and any attachments hereto set forth all of the covenants, promises, agreements, conditions and understandings between Landlord and Tenant concerning the transactions contemplated herein and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between Landlord and Tenant other than as are herein set forth. 11. Execution Authority. The individual signing this First Amendment on behalf of Tenant represents and warrants that he or she has the full power and authority to execute this First Amendment and that upon such execution, Tenant shall be fully bound by each and every provision of the Lease, as amended by this First Amendment. The individual signing this First Amendment on behalf of Landlord represents and warrants that he or she has the full power and authority to execute this First Amendment and that upon such execution, Landlord shall be fully bound by each and every provision of the Lease, as amended by this First Amendment. 12. Counterparts; Electronic Signatures. This First Amendment may be executed in any number of identical counterparts, all of which, when taken together, shall constitute the same instrument. A copy of the executed First Amendment (in electronic form or otherwise) shall be deemed an original for all relevant purposes. The exchange of copies of the executed First Amendment by electronic mail or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document shall constitute effective execution and delivery of this First Amendment. Signatures of any parties hereto transmitted electronically shall be deemed to be their original signatures for all purposes. [Signatures appear on following page.] 3 IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment as of the dates set forth below. “LANDLORD” KRG TOWN SQUARE VENTURES, LLC, a Delaware limited liability company Signature:_________________________________ Printed Name:____________________________________ Title:_____________________________________ Executed by Landlord on ____________________ “TENANT” THE CITY OF SOUTHLAKE, TEXAS, a municipal corporation Signature:______________________________ Printed Name:_________________________________ Title:__________________________________ Executed by Tenant on ___________________