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Kennedale EDC authorizes manager to negotiate 3-year lease with Southpointe Constructors
Summary
The Kennedale Economic Development Corporation unanimously authorized the city manager to negotiate a lease with Southpointe Constructors for two EDC-owned properties, approving a 3-year term (then month-to-month), a $1,500 monthly rent per property and vendor responsibility for cleanup of vehicle fluids; final contract will incorporate city attorney redlines.
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The Kennedale Economic Development Corporation on a unanimous vote on the consent calendar authorized the city manager to negotiate a lease with Southpointe Constructors for two EDC-owned properties, with the lease returning to the city attorney for final approval.
Daryl (City Manager) told the board he had secured an increase in rent from $1,000 to $1,500 per month for each property after prior direction from the board and asked for authority to finalize the lease subject to the city attorney’s redlines. "I need approval for the lease agreement with modifications from the city attorney," he said.
Board members clarified key business terms before the motion: the term is three years followed by month-to-month tenancy; either party has a 30-day notice option; and Southpointe will be responsible for cleanup of non‑hazardous vehicle fluid contamination. The city attorney advised that hazardous materials would be prohibited.
Navarz moved to approve the manager’s negotiation authority pending the city attorney’s final contract edits; the motion was seconded and carried unanimously.
The board had earlier asked staff to seek a higher monthly rate and to make clear environmental responsibilities after reviewing earlier usage of EDC land. The lease packet had not been included in the meeting packet because Southpointe returned an agreed draft only the morning of the meeting; staff said redlines from the city attorney would be incorporated prior to execution.
Next steps: staff will incorporate attorney changes, finalize the lease with Southpointe, and return the final contract to the EDC for any additional action required for execution.

