Offer for Lease – 7.5 acres at the SEC of 45th/Lamar – Austin, Texas

Offer for Lease – 7.5 acres* at the SEC of 45th/Lamar – Austin, Texas

*Measurement is approximate

The Health and Human Services Commission (“HHSC” or “Owner”), for and on behalf

of its facility Austin State Hospital (“Center”), is soliciting lease bids (“Bids”) for

selection of a lease tenant or tenants (“Tenant”) to occupy and utilize all or part of

approximately 7.5 acres (the “Property”) of land containing a 72,472 sf building and

a 17,095 sf building for generation of revenue and other purposes in accordance with

the terms, conditions, and requirements set forth in an executed lease (“Lease”).

This Solicitation is being issued to select a Tenant for the Lease as provided by Texas

Health and Safety Code Section §533.087.

Schedule of Events

1. Ads will be placed in the Austin American-Statesman and the Houston Chronicle

May 22, 29, June 5, 12, 2026.

2. Site visits will be available June 1 and June 8, by appointment only and between 8

a.m. and 4 p.m.

3. The solicitation of bids will be open from May 21 to June 18.

4. Deadline for accepting bids will be 5 p.m. June 18.

5. Bid review period and interaction with finalists (if required) will be June 22-July 2.

6. The Lease negotiation period will be July 6 to July 29.

7. Potential start date of occupancy will be August 2026.

All communication and questions related to this posting will be directed to:

Craig Greene at 512-466-3152 or craig.greene@hhs.texas.gov; Lee Harsh at 737-867-

7128 or lee.harsh@hhs.texas.gov; or Melissa Rider at 512-997-4265 or

melissa.rider@hhs.texas.gov.

 The dates included in the Schedule of Events are tentative. HHSC reserves the

right to modify the dates at any time and will post all changes on the ESBD

posting. Changes will be highlighted.

 HHSC reserves the right to reject all bids.

Property Summary:

 A State of Texas owned commercial use parcel on the campus Austin State Hospital,

909 W. 45th St., 78751.

 Uses or occupancies are limited to mental health services, as listed in Required Uses

below.

 Easement or other rights may be necessary for the benefit of the Owner related to

utilities or ingress/egress.

 An aerial view of the referenced property is attached as Exhibit B.

Proposed Lease Terms:

 Preference is a ground lease up to 49 years with renewal options. A form or set of

all terms is not available considering the many options.

 A prevailing market rate will be evaluated according to the assumptions in bids

chosen for final consideration.

 Winning the bid will result from mutual agreement on terms and conditions set out

in a proposed lease agreement.

Required Uses and Hours:

 Required uses for the land lease are: Services related to research, prevention, and

detection of mental disorders and disabilities, and all services necessary to treat,

care for, supervise, and rehabilitate persons who have a mental disorder or

disability, including persons whose mental disorders or disabilities result from a

substance abuse disorder.

 Hours of operation, emitted sound and lighting will be reviewed and might be

restricted if in conflict with program areas of the Center as it relates to noise or air

quality. Owner may require easements or other conditions to be met related to

buried utilities, ingress/egress, drainage, common boundaries or other items.

Bidders will read Exhibit A Property Inspections Instructions related to Center

guidelines and information to arrange an inspection of the property.