The City of San Marcos could evict one of its tenants in the upcoming months for defaulting on their lease payments and property taxes.
Several properties along the Union Pacific Railroad in San Marcos are city-owned property currently being leased to local businesses.
According to the statement on his account dated Feb. 13, (see below) Hays County Judge and Business Owner, Ruben Becerra, has two outstanding balances with the city and one with Hays County.
In December 2018, the City invoiced Judge Becerra for the final installment of his 2018 lease payments for the property located at 201 S LBJ Dr.
According to an account statement received from the city, Becerra paid three of the four lease payments he agreed to at a May 15, 2018, council meeting. However, the fourth and final 2018 payment has yet to be received.
On January 9, the city issued an additional invoice for $3,550.08 for 2019’s land lease.
According to the lease, the city, as the lessor, “may terminate this Lease for Lessee’s default by giving Lessee notice of termination, if Lessee (i) defaults under any obligation of Lessee under this Lease and, after written notice is given by Lessor to Lessee specifying the default, Lessee fails either to immediately commence to cure the default, or to complete the cure expeditiously but in all events within thirty (30) days after the default notice is given…”
In May 2018, the San Marcos City Council instructed Becerra to pay the lease for 2018 and directed staff to draft a new lease for 201 S LBJ Dr.
The lease has an effective date of May 15, 2018. However, documents Corridor News received from the city state the lease was not executed until September 14, the same day Becerra made the first installment of his 2018 lease that the city directed him to pay.
The property was formerly sub-leased by Yogurt In Love, which permanently closed its doors on December 10, 2018.
According to the Hays County Tax Assessor’s office, Hays County Property Taxes for 201 S LBJ Drive property have not been paid for 2018; property taxes for 2018 were due on January 31, 2019.
The property, which is still listed under the name of the former owner, Daniel Anderson, has a balance of $1,400.51 for 2018.
During the May 15, 2018 meeting, former Council member Scott Gregson proposed an amendment to the lease requiring the “lessee to show proof of registration with all taxing authorities of the true and correct ownership of any and all personal and real property located on the premises within five days of execution” of the lease.
Ultimately, the amendment failed with former Mayor John Thomaides and former council member Gregson voting for it.
According to the current lease, Becerra has thirty days from the “notice of lessee’s default” to cure the delinquency. After 30 days, the potential termination of the lease could be brought to City Council for consideration.
According to the statement from the city below, in lease payments Becerra is 31 – 60 days is past due for $3550.08 and 61 – 90 days past due on $861.67.
During the May 15 meeting, City Attorney, Michael Cosentino, informed the council unless responsibility is delegated to an individual or staff member by city council, the responsibility for terminating the lease defaults to the city council and be brought forward to the dais.
An amendment proposed by Thomaides last May to name and authorize the city manager to terminate the lease failed on council by a 2-5 vote with Thomaides and Gregson voting yes.
The lease is set to automatically renew every year and is due, in full, on or before February 1.[divide icon_position=”left” width=”short” color=”#”] [gview file=”https://smcorridornews.com/wp-content/uploads/2019/02/Becerra_Corp_Account_Statement_02-13-2019-with-Property-Tax.pdf”]
- San Marcos City Council Shows Great Divide, Infighting In The Dixie Cream Sweetheart Of A Deal Finale