HomeMy WebLinkAboutResolution - 2013-R0302 - Agreement - Shiva Hotels LLC - 09/26/2013Resolution No. 2013-RO302
September 26, 2013
Item No. 5.5
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to
execute for and on behalf of the City of Lubbock, a Payment Agreement with Shiva
Hotels, LLC d/b/a Best Western Palms Inn and Suites, and related documents. Said
Agreement is attached hereto and incorporated in this resolution as if fully set forth herein
and shall be included in the minutes of the City Council.
Passed by the City Council on September 26, 2013
61 TSON. MAYOR
A'T'TEST:
Re cca Garza, City Secret
APPROVED AS TO CONTENT:
Pam Moon. Director of Finance
APPROVED AS TO FORM:
-W
'/ d-J'V��
Je"arQl, Chief Litigation Attorney
vw:ccdocsJRES,Agrmt-Shiva Hotels
August 28, 2013
Resolution No. 2013-R0302
123 abc 01:07:22 p.m. 08-28-2013 319
AGREEMENT
This Agreed Payment Schedule Contract (hereinafter referred to as the
"Agreement") is entered into between the City of Lubbock, a home rule municipal
corporation of the State of Texas (hereinafter referred to as the "City") and Shiva Hotels,
LLC, a corporation registered under the laws of the State of Texas (hereinafter referred to
as "Shiva Hotels").
RECITALS
WHEREAS, Shiva Hotels is doing business in the City of Lubbock and owns and
operates a hotel doing business as the Best Western Palms Inn and Suites; and
WHEREAS, the City of Lubbock Code of Ordinances, §18.03.001 — 18.03.005,
imposes a hotel occupancy tax pursuant to §351.002 of the Texas Tax Code; and
WHEREAS, the City of Lubbock Code of Ordinances requires that anyone
owning, operating, managing or controlling any hotel shall collect the tax imposed by the
City; and
WHEREAS, Shiva Hotels has failed to collect or remit to the City certain taxes
imposed by the City of Lubbock Code of Ordinance; and
WHEREAS, Shiva Hotels owes the City Fifty -Six Thousand Eight -Hundred and
Forty -One Dollars and 74/100, ($56,841.74), in back taxes, interest and penalties as of
August 20, 2013; and
WHEREAS, the City filed suit against Shiva Hotels for the payment of the back
taxes in Cause No. 2012-503,349 City of Lubbock vs. Shiva Hotels, LLC d/b/a Best
Western Palms Inn and Suites; and
123 abc
01:07:40 p.m. 08-28-2013 419
WHEREAS, Shiva Hotels has decreased what it owes to the City to $56,841.74
from $107,362 since suit was filed; and
WHEREAS, the parties desire to enter into an agreement for Shiva Hotels to pay
the arrearage of $56,841.74 over a three (3) year period in lieu of proceeding to trial.
NOW THEREFORE, IN CONSIDERATION of the mutual promises and
agreements, as set forth herein, including the recitals set forth above, and other good and
valuable consideration, Shiva Hotels and the City agree as follows:
1. Shiva Hotels shall:
i) Pay 36 monthly payments at the rate of $1,723.56 per month for all past
due taxes, including any penalties and interest, set forth in Exhibit "A"
(attached hereto and incorporated herein as though fully set forth); and
ii) Pay all current hotel taxes monthly on or before the date the taxes become
due as required under Chapter 18 of the Code of Ordinances of the City of
Lubbock; and
2. Shiva Hotels acknowledges that (i) the back taxes due and owing by Shiva
Hotels, as set forth in Exhibit "A", are true and correct in all respects; and (ii) this
Agreed Payment Schedule Contract in no way discharges, dismisses, or alters,
except as provided herein, Shiva Hotels' duty and obligation to pay any past,
current or future taxes as they become due.
3. In consideration of the compromise agreed upon as set forth herein, the
City shall dismiss its lawsuit against Shiva Hotels Cause No. 2012-
503,349.
E
123 abc 01:07:59 p.m. 08-28-2013 5/9
4. Shiva Hotels shall be in default ("event of default") if any one or more of
the following events shall occur:
i) The City of Lubbock fails to receive any payment set forth in Exhibit "A"
within seven (7) business days of its due date; or
ii) The City of Lubbock fails to receive within seven (7) business days of its
due date any monthly payment required under Chapter 18 of the Code of
Ordinances of the City of Lubbock; or
iii) Shiva Hotels (a) applies for or consents to the appointment of a receiver,
trustee, intervenor, custodian or liquidator for the business or of all or
substantial part of the assets; (b) is adjudicated a bankrupt, insolvent, files
a voluntary petition for bankruptcy, or admits in writing that Shiva Hotels
is unable to pay its debts as they become due; (c) makes a general
assignment for the benefit of creditors; (d) files a petition or answer
seeking reorganization or an arrangement with creditors or to take
advantage of any bankruptcy or insolvency; or (e) files an answer
admitting the material allegations of, or consent to, or default in
answering, a petition filed against Shiva Hotels in any bankruptcy,
reorganization or insolvency proceeding, or take corporate action for the
purpose of effecting any of the foregoing.
5. If an event of default occurs, after providing Shiva Hotels with written
notice and five (5) business days to cure the default, the City may, at its option, (i)
declare all unpaid amounts due hereunder immediately due and owing without
t
123 abc 01:08:18 p.m. 08-28-2013 6/9
any further notice to Shiva Hotels; and/or (ii) exercise any and all rights available
to it in law, equity, contract or otherwise including, but not limited to, those rights
set forth in Chapter 18, of the Code of Ordinances of the City of Lubbock
including the authority to file suit against Shiva Hotels for breach of this
Agreement for failing to pay the back taxes as set forth in Exhibit "A".
6. Shiva Hotels acknowledges that if, upon the entry of a final judgment
finding that Shiva Hotels is in breach of this Agreement, Shiva Hotels will be
liable for the City's reasonable attorney's fees, reasonable costs and reasonable
expenses in instituting, preparing, or prosecuting, the underlying action or suit.
7. This Agreement shall inure to the benefit of, and be binding upon, Shiva
Hotels its legal representatives, successors or assigns, and to the City, its legal
representatives, successors or assigns.
8. All signatories to this Agreement hereby warrant that they have the
authority to execute this Agreement and bind the respective parties.
9. This Agreement states the entire agreement of the parties with respect to
the matters discussed herein, and supersedes all prior or contemporaneous oral or
written understandings, agreements, statements or promises.
10. This Agreement may not be amended or modified in any respect except by
a written instrument duly executed by all the parties to this Agreement.
11. If any portion of this Agreement is held unenforceable by a court of
competent jurisdiction, the remainder of this Agreement shall not be affected and
shall remain fully in force and enforceable.
4
123 abc
01:0838 p.m. 08-28-2013 119
12. Each party to this Agreement acknowledges and agrees that they have
obtained legal representation and advice as they have deemed appropriate in
entering into this Agreement.
13. It is further understood that this Agreement shall be governed by and will
be construed by the laws of the State of Texas.
14, This Agreement may be executed in a number of identical counterparts,
each of which shall be deemed an original for all purposes.
r�
Dated this "3 day of 51W , 2013.
CITY OF LUBBOCK
Glen C. son, May r
5
SHIVA HOTELS, LLC
Nelesh Patel, for
Shiva Hotels, LLC
123 abc 01:08,48 p.m. 08-28-2013 819
ATTEST:
0-te",
Re ecca Garza, City Secret
APPOVED AS TO CONTENT:
qozo����
Pam Moon, Director of Finance
APPROVED AS TO FORM:
A
Litigation Attorney
Slick Bhakta,
Attorney for Shiva Hotels, LLC
123 abc 01:08:55 p.m. 08-28-2013 919
Best Western Palms Payment Schedule
Taxes Owed
Start
Interest %
Term
Payment #
$ 56,841.74
9/30/2013
0.06
36
Payment Amount $1,729.24
Payment assumed equal payments on same date
T"Hiliff
Taxes Due
Total Payments
Due Date
Taxes
Interest
56,841.74
1
8/19/2013
2,000.00
-
54,841.74
2,000.00
2
10/31/2013
1,074.47
649.09
53,767.27
1,723.56
3
11/30/2013
1,454.72
268.84
52,312.54
1,723.56
4
12/31/2013
1,462.00
261.56
50,850.54
1,723.56
5
1/31/2014
1,469.31
254.25
49,381.24
1,723.56
6
2/28/2014
1,476.65
246.91
47,904.58
1,723.56
7
3/31/2014
1,484.04
239.52
46,420.55
1,723.56
8
4/30/2014
1,491.46
232.10
44,929.09
1,723.56
9
5/31/2014
1,498.91
224.65
43,430.17
1,723.56
10
6/30/2014
1,506.41
217.15
41,923.77
1,723.56
11
7/31/2014
1,513.94
209.62
40,409.82
1,723.56
12
8/31/2014
1,521.51
202.05
38,888.31
1,723.56
13
9/30/2014
1,529.12
194.44
37,359.19
1,723.56
14
10/31/2014
1,536.76
186.80
35,822.43
1,723.56
15
11/30/2014
1,544.45
179.11
34,277.98
1,723.56
16
12/31/2014
1,552.17
171.39
32,725.81
1,723.56
17
1/31/2015
1,559.93
163.63
31,165.88
1,723.56
18
2/28/2015
1,567.73
155.83
29,598.15
1,723.56
19
3/31/2015
1,575.57
147.99
28,022.58
1,723.56
20
4/30/2015
1,583.45
140.11
26,439.14
1,723.56
21
5/31/2015
1,591.36
132.20
24,847.77
1,723.56
22
6/30/2015
1,599.32
124.24
23,248.45
1,723.56
23
7/31/2015
1,607.32
116.24
21,641.13
1,723.56
24
8/31/2015
1,615.35
108.21
20,025.78
1,723.56
25
9/30/2015
1,623.43
100.13
18,402.35
1,723.56
26
10/31/2015
1,631.55
92.01
16,770.80
1,723.56
27
11/30/2015
1,639.71
83.85
15,131.09
1,723.56
28
12/31/2015
1,647.90
75.66
13,483.19
1,723.56
29
1/31/2016
1,656.14
67.42
11,827.04
1,723.56
30
2/29/2016
1,664.42
59.14
10,162.62
1,723.56
31
3/31/2016
1,672.75
50.81
8,489.87
1,723.56
32
4/30/2016
1,681.11
42.45
6,808.76
1,723.56
33
5/31/2016
1,689.52
34.04
5,119.25
1,723.56
34
6/30/2016
1,697.96
25.60
3,421.28
1,723.56
35
7/31/2016
1,706.45
17.11
1,714.83
1,723.56
36
8/31/2016
1,714.83
8.57
0.00
1,723.40
T"Hiliff