CM-07-03-042ROUND ROCK, TEXAS
PURPOSE. PASSION. PROSPERITY.
March 19, 2007
Mayor
NyleMaxwell
MayorPro-tem
Alan McGraw
CouncilMembers
RufusHoneycutt
JoeClifford
Carlos T. Salinas
Scott Rhode
TedWilliamson
CityManager
James R. Huse, P.E.
City Attorney
Stephan L. Sheets
Jay C. Hudgins
St. Germain Street Investments,Inc.
8017 Mesa Drive, Suite 102
Austin, Texas 78731
Re: Letter of Interest in the office building located at 231 E. Main St., Round Rock, Texas
Dear Mr. Hudgins,
The purpose of this letter is to set forth the City of Round Rock's (the "City") interest in the
office building located at 231 E. Main St., Round Rock, Texas (the `Building").
The City has a need for additional office space to house existing and future administrative
employees. The City had planned to meet that need by constructing a new City Hall on City
owned property near the intersection of W. Bagdad and Brown St. However, while a new
City Hall is still an option, the City is interested in exploring other alternatives for meeting
its space needs.
Because of the location of the Building immediately adjacent to the current City Hall, it is a
very attractive option for the City to consider. Accordingly, I would like to initiate
discussions with you and/or the owner(s) of the Building to negotiate a contract for the
purchase of the Building.
I would like to begin the discussions immediately with the goal of having a contract to
present to the Council for its consideration and approval at its regular meeting on April 12,
2007. The funds for the purchase of the Building would come from the issuance of general
obligation bonds which is expected to occur in May. The funds from the bond issue would
be available in early June. Therefore the schedule would be as follows:
Week of March 19, 2007
March 30, 2007
April 12, 2007
April 26, 2007
May 31, 2007
June 15, 2007
Contract discussions begin
Contract complete
Council considers and approves contract
Council approves bond issuance
Bonds are sold and funds available
Transaction closes
CITY OF ROUND ROCK ADMINISTRATIVE DEPT., 22! East MainStreet •RoundRock,Texas78664
Phone:512.218.54om • Fax:512.218.7o97•www.roundrocktexas.gov
Page Two — Cont'd
In order to facilitate the contract discussions, we would like to have the following information from you:
(1) a list of the current tenants and the expiration dates of their leases and (2) the amount of rent that is
being collected. We understand the privacy concerns of the owner and the tenants and we do not require
the amount of rent per specific tenant, but we are interested in the rent on a square foot basis.
The City is also interested in leasing any space that is currently vacant and which becomes available in
the near future. Therefore, please let us know the details of existing space and anything that might
become available. Since we are considering the purchase of the Building, we would like to request that
we be given the first consideration to lease the available space.
I look forward to working with you and the owner(s) to negotiate a mutually beneficial contract for the
purchase of the Building.
Si_cerely,
es R. Nuse, P.E.
Manager
cc: David Kautz
Steve Sheets
Project File CM -07-03-042