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Market Square Proposed Lease Structure – June 11, 2019

Initial Lease Period Four-year


Right of First Refusal The City is committed to preserving the historic and cultural significance present
with a 4 year term in the market. To ensure small enterprises are preserved, Farmers Market and El
Mercado tenants will have the right of first refusal to enter into a four year lease
within Market Square subject to terms proposed by the City that may be
developed as part of the visioning process. This right of first refusal will not
guarantee tenants a right to the space they are currently occupying, only the right
to enter into a four year lease agreement for an available space within the Market
Square complex. There is no guarantee as to the allowable uses or the lease rate
to be paid.
Rates Rental rates held steady for two years. Rates increase 2.0% in Year 3. Rent will be
renegotiated prior to the expiration of the Initial Lease Period.

Storage and Waste Collection fee increase 2.5% annually


Merchandising Plan No requirement
Utilities Billed monthly based on usage and square footage
Maintenance City is responsible for repair, replacement, and maintenance of the roof,
Responsibilities foundation, common areas, structural soundness of the exterior walls, doors, and
windows, and HVAC.

Lessee is responsible for the repair, replacement, and maintenance of any part
the City is not obligated to repair, replace, or maintain.
Sales Reporting Monthly Sales Report due to City within 15 days after end of each calendar
month, along with copy of monthly Texas Comptroller Sales and Use Tax Report.
Annual Statement due to City within 60 days after the end of each lease year
detailing Sales made on the Premises during the preceding 12 month period.
Participation in Lessee agrees to work with and/or participate in programs provided by the City to
Development enhance and increase potential business practices and maximize business plans
Programs such as but not limited to merchandising, display layout, customer experience,
sales, marketing etc.
Assignments Lease assignments will not be permitted. Lessee will have option to Terminate
lease, and City will go through a formal RFP process to identify new Lessee to
occupy the space.
Authenticity The City of San Antonio will strive to ensure that Market Square continues to be a
culturally vibrant destination and an authentic marketplace for Mexican, Latin,
and international retail. The Market Square Visioning Process will be grounded in
a shared understanding of the cultural legacy of El Mercado and Farmers Market.
Small Business The City of San Antonio is committed to preserving the historic and cultural
Enterprises significance already present in the market including the small and minority-owned
business enterprises.