The details
District officials are leasing the fifth floor to the Greater Austin YMCA for a five-year contract, set to commence April 1. Greater Austin YMCA officials will pay $300,000 each year in rent with a 5% annual rent increase, according to the lease agreement.
The Greater Austin YMCA joined the contract amid more I-35 construction on the way, which would impact its current headquarters located at 55 N. I-35 frontage road, Austin.
The background
The revenue generated from the rental fees could offset the costs to operate the central office as district officials are working toward generating revenue and cutting expenses to combat a $110 million budget shortfall.
Property monetization is one of the avenues AISD staff are looking at to increase revenue, according to agenda documents. Officials have previously labeled former campuses as surplus, paving the way for the future lease or sale of the property, as previously reported by Community Impact.
AISD officials are also working on recruitment and retention strategies, including implementing a hybrid remote work policy for central office administrative employees. The policy, which launched in January, allows the employees to work from home at least two days per week, allowing the vacant space to be used for leasing, according to agenda documents.
Also of note
AISD and the Greater Austin YMCA have partnered for more than 50 years through various programming, such as operating safety and fitness education, after-school care, preschool and summer day camps on district campuses. The Y provides after-school care at 30 AISD campuses.
Trustee Arati Singh said the lease will help the district as it faces financial challenges.
“[It] definitely indicates that the district is willing to think differently about our own properties as we enter a more financially strained situation,” she said. “And how wonderful that we get to partner more closely with the YMCA.”
