Academy High School will remain at its current location inside Texas A&M University-Kingsville’s Poteet Hall through 2024 after the TAMU System Board of Regents and SGISD board approved a new five-year lease agreement for the property.

SGISD Superintendent Veronica Alfaro presented the new lease agreement to the district’s school board during their regular meeting last Wednesday.

The last agreement was approved in August 2012, and allowed Santa Gertrudis ISD to utilize the building on a five-year contract through 2017. After that date, the contract allowed for annual renewals.

“But they don’t do those (annual renewals) anymore,” Alfaro said to the board. “So at the end of the fifth year, we are going to have to revisit it for another five-year lease.”

Per the agreement, Santa Gertrudis ISD will continue to lease the 71,600 square foot Poteet Hall for $149,858.44 for the first year of the lease term, through quarterly payments of $37,214.61.

The annual base amount increases by 4 percent every year, according to the agreement, until the end of its five-year term on July 31, 2024.

The school district is also responsible for all utility charges, according to the lease agreement, including electricity, gas, water and sewer, which “shall be billed at the average cost per square foot realized by TAMUS across the Kingsville campus.”

“The cost remains the same, and what each party does remains the same,” Alfaro said.

In addition, the agreement states that Santa Gertrudis ISD also owes the Texas A&M University System $380,000 as part of a building renovation that was completed in 2013.

“(Santa Gertrudis ISD) will make four annual payments of $95,000 beginning on May 1, 2020 and continuing annually on such date until paid in full,” the agreement states. “These payments and the obligation of (Santa Gertrudis ISD) to pay same shall survive any early termination of this lease.”

SGISD Board Vice-President Carrie DeLaney made a motion to approve the lease agreement, which was seconded by trustee Delia Perez and approved in a 6-0 vote. Trustee Flo Falcon was not present at the meeting.

Santa Gertrudis ISD began its 2019-20 school year on July 31.

Anthony Ruiz can be contacted at aruiz@king-ranch.com or (361) 221-0251.

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