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CM-2017-1318 - 2/10/2017ROUND ROCK TEXAS ADMINISTRATION DEPARTMENT February 10, 2017 DT Land Group, Inc. 2414 Exposition Boulevard Suite D-200 Austin, Texas 78703 Mayor Alan McGraw Mayor Pro -Tem Craig Morgan Councilmembers Rene Flores Frank Leffingwell Will Peckham Writ Baese Kris Whitfield City Manager Laurie Hadley City Attorney Stephan L. Sheets Re: Termination Notification of a Temporary Property Management Agreement with the City of Round Rock Agreement dated November 30, 2012 Dear Ms. Green: On November 30, 2012, the City of Round Rock ("City") and DT Land Group, Inc. entered into Temporary Property Management Agreement (the "Agreement") for management of the Round Rock Commons. On March 29, 2013, the Agreement was modified to allow for DT Land Group, Inc. to lease individual units on behalf of the City ("First Amendment"). The First Amendment did not modify any other terms or conditions of the Agreement. In October of 2016, the Agreement was once again amended at DT Land Group, Inc.'s request to set forth an expiration date for the leasing services portion of the Agreement as required by the Texas Real Estate License Act ("Second Amendment"). Again, the terms and conditions of the original Agreement remained unchanged. At this time, the City has determined your services are no longer needed for property management and leasing activities and desires to terminate the Agreement. The Agreement provides in Section 6.01 that: "Upon the expiration of the initial term of this Agreement, the term of this Agreement shall be deemed to be renewed for successive one (1) month periods from month to month unless, at thirty (30) days prior to the expiration of the initial term of this Agreement or any renewal term, either party hereto shall give to the other written notice of its election not to renew this Agreement. " This correspondence shall serve as notice that the City of Round Rock, Texas desires to terminate this Agreement as of April 1, 2017. This allows for a notice of sixty (60) days, although only a notice of thirty (30) days is required under Section 6.01 of the Agreement. 00371717/ss2�ZQ17—�3%B CITY OF ROUND ROCI< 221 East Main Street, Round Rock, Texas 78664 [P] 512.218.5401 • [F] 512.218.7097 • roundrocktexas.gov DT Land Group, Inc. Letter —Page 2 The termination of this Agreement terminates both the management services and the leasing services provided by DT Land Group, Inc. Although in the Second Amendment an expiration date was added for the leasing services portion of the Agreement to comply with the Texas Real Estate License Act, the ability to terminate the Agreement and terms and conditions for termination were not modified. As you stated in your letter dated August 3, 2016, "should the property management agreement terminate, then the entire agreement will also terminate as of that date. " The City very much appreciates the services you have provided and wishes you all the best in your future endeavors. Should you have any questions or feel the need to discuss this matter further, please do not hesitate to contact me. Sincerely, Laurie Hadley City Manager City of Round Rock ROUND ROCK TEXAS Agenda Item Summary Agenda Number: Title: Consider executing a termination letter to DT Land Group, Inc. for property management and leasing services at the Round Rock Commons. Type: City Manager Item Governing Body: City Manager Approval Agenda Date: 2/10/2017 Dept Director: Laurie Hadley Cost: Indexes: Attachments: LAF- DT Land Termination Letter, Termination Letter - DT Land Group (1-30-17) (00371717xA08F8) Department: Administration Text of Legislative File CM -2017-1318 Consider executing a termination letter to DT Land Group, Inc. for property management and leasing services at the Round Rock Commons. DT Land has been operating as the property management company since 2012. There are currently only three tenants left on the property from the orinigal ten tenants. It has been decided to terminate this agreement. The City will continue to maintain the property. A staff person will be available for any questions or concerns from the existing tenants. City of Round Rock Page 1 Printed on 2/9/2017