Board of Directors Regular Meeting Agenda


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Meeting Date: 12/10/2015  

SUBJECT MATTER:
Receive, consider and act upon termination of lease for the recreational vehicle (RV) storage lot;
FISCAL IMPACT:

In 2014 (last full year), the Township received $22,168.40 in revenue from rental of spaces at the RV lot while expenses totaled $15,362.11 – for annual net revenue over expenses of $6,706.29. Staff time is not allocated in this calculation as personnel time is not tracked, but it is believed that the staff time required to manage the RV lot is covered by the net revenues over expenses.

BACKGROUND:
In 1984, The Woodlands Community Association and The Woodlands Corporation entered into an agreement to lease a parcel of property at 1128 Pruitt Road to be used for RV storage. The Lease Agreement was modified to include The Woodlands Association and Woodlands Commercial Owner’s Association (Attachment A). The purpose for creating the RV storage lot was to offer resident members of the Associations a place they could store boats, RVs and other vehicles at a nominal fee. As the Covenants and Residential Standards do not permit long term storage of RVs on residential lots encumbered with Covenants, a low-cost storage option was desired to provide a service to the members and encourage compliance with the Covenants.
 
The current term of the Lease Agreement with The Woodlands Development Company expires July 31, 2016.  The Agreement states either party may provide written notice not more than 30 days nor less than ten days prior to the expiration of any one year term.
 
During the 2016 Budget process, the Board of Directors voted to terminate the RV storage lot service and to provide notice to tenants that 2016 will be the last year the Township will operate the RV storage lot facility.  An initial notice was provided to RV lot tenants in September 2015 that the facility will close December 2016.  It is proposed that the Board formally authorize notice of termination of the lease to The Woodlands Development Company. 
 
Historically, the RV lot experienced 100% occupancy and it was not uncommon to have a large number of people on a waiting list to rent a spot. However the past few years, for various reasons, the RV lot has had a number of vacant spaces. Currently,  there are 165 spaces leased of the 198 total spaces available leaving 33 vacant spaces and no waiting list. It is believed that the competition by the private sector, including a fairly new RV storage lot right next door provides people more options than previously existed. Secondly, the Township operates this as a basic facility, per the conditions of the lease: dirt/gravel lot, security, and limited routine maintenance, and many residents now desire a higher level of care and protection in a RV lot. At the inception of the service, there were very few, if any, RV storage facilities in close proximity to The Woodlands. At this time, there are at least seven other storage facilities surrounding The Woodlands (Attachment B).
 
The following is the approved  timeline for closure of the facility in compliance with the terms of  the lease agreements with the lot renters/tenants and TWDC: 
  • November/December 2015 – Renew and/or execute one year lease agreements with RV lot tenants for the year 2016, with the message that 2016 will be the last year of service and that by December 31, 2016 the lots must be vacated. This would allow one year for the tenant lease holder to identify a new location for their vehicle.
  • January – July 2017: Remove any Township improvements and legally dispose of any remaining / abandoned vehicles.
RECOMMENDATION:

Authorize the President/General Manager to provide a notice of termination of the lease agreement with The Woodlands Development Company for the RV storage lot to be effective July 1, 2017.

Attachments
Attachment A - RV Lot Lease Agreement
Attachment B - Map of Area RV Storage Lots


    

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