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Home My WebLink AboutResolution - 2019-R0140 - Market Lubbock Expenditure - MCM Elegante Hotel And Suites - 04/23/2019 Resolution No. 2019-RO140 Item No. 7.14 April 23, 2019 RESOLUTION WHEREAS, pursuant to Article IV, Section 5 of the Amended and Restated Bylaws of'the Market Lubbock Economic Development Corporation (the "Corporation"), the City Council of the City of Lubbock (the "City Council"), as the Corporation's authorizing unit, has the authority to approve all programs and expenditures of the Corporation; and WHEREAS, the City Council finds that it is in the best interest of the public to approve the program or expenditure, as proposed to the City Council by the Corporation, as set forth in Exhibit "A" attached hereto and incorporated herein by reference; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Downtown Facade Grant program or expenditure of the Corporation, in the amount set forth in Exhibit "A" attached hereto and incorporated herein by reference, to be provided to MCM Elegante Hotel and Suites, is hereby approved pursuant to Section 5 of the Amended and Restated Bylaws of the Corporation. Passed by the City Council on April 23, 2019 DANIEL M. POPE, MAYOR ATTEST: e e ca Garza, City Secretar APPROVED AS TO COS ENT: IV, Scott Snider, Business Development Director APPROVED AS TO FORM: hj�j",- 14elli Leisure, Assistant City Attorney ocdocs/RES.Market Lubbock Expenditure—MCM EIegante-Downtown Facade Grant Program 04.03.19 M A R K E T LUBB*Ilr'�61 C K'. Downtown Grant Program April 23, 2019 Total Capital - $327,344 Total Grants - $41,771 • MCM Elegante —801 Ave Q o Grant Type — Fapade (50% up to $25,000) o Expense Total = $216,456 o Grant Total = $25,000 o Board Approval — March 27, 2019 • MCM Elegante —801 Ave Q o Grant Type — Permittable (10% up to $100,000) o Expense Total = $96,682 o Grant Total = $9,668 o Board Approval — March 27, 2019 • Vtech Environmental — 1602 Ave F o Grant Type — Farade (50% up to $25,000) o Expense Total = $14,206 o Grant Total = $7,103 o Board Approval — March 27, 2019 1500 Broadway, 6t" Floor, Lubbock, Texas 79401 Phone (806) 749-4500 MARKET LUBBOCK, INC. - DOWNTOWN GRANT PROGRAM K �D 801 Ave Q (MCM Elegante) TOTAL SCOPE OF WORK = $216,456 FACADE GRANT = $25,000 Additional project expense (furniture, carpet, etc.) not eligible for grant program = $828,236 M A R K E T LUBB*CK.. Downtown Grant Program Presented to MLI Board March 27, 2019 Project 801 Ave Q (Facade) 713 Hotel Operating, LLC (dba MCM Elegante Hotel &Suites) has served the Lubbock community since September 2013,offering the only full-service hotel in the downtown area,and employs over 70 employees in the Lubbock community. It has locations in Abilene, Ruidoso, Beaumont, Colorado Springs, Dallas and Odessa.The MCM Elegante is renovating the building at 801 Ave Q,located within the Downtown TIF. The scope of work will include repainting the existing exterior surfaces, replacing fencing, and converting the landscaping to a zero-scape format including natural irrigation, new plants and more totaling$216,456 in expenses. The MLI Board is being asked to consider a Downtown Facade Grant for 713 Hotel Operating totaling $25,000 at 801 Ave Q. M A R K E T LUBB)NMCK Downtown Grant - Application The information requested on this form will be used by Market Lubbock, Inc. for analysis of your project. MLI CONTACT INFORMATION Jorge Quirino-Special Projects Phone: 806.749.4500 Market Lubbock, Inc. 1500 Broadway, Sixth Floor, Lubbock, TX 79401 Email: jorge.quirino@lubbockeda.org *Applications must be received by MLI prior to pulling a City permit or starting construction *Scope of work must be approved by the City of Lubbock(more detail on page 3) Project Property Address 801 Ave Q GENERAL INFORMATION ABOUT THE COMPANY Company Name 713 Hotel Operating, LLC, dba MCM Elegante Hotel and Suites Street Address 801 Ave Q City, State, Zip Lubbock, TX 79401 Federal Tax ID# 46-2723495 GENERAL INFORMATION ABOUT THE COMPANY CONTACT Name Ed Lasater Title President Phone Number 432-334-8881 (office) 432-553-0050 (cell) Email edlasater(a mcmelegante.com Date Submitted 5130117 (JQ edits 3.15.19 per GM Venita Yelley) COMPANY BACKGROUND List any person or entity that has at least 5% ownership in the Applicant Company: Name Percent Name Percent Investment Corp. of America 75% ICA Group 25% Owners of both companies-John Bushman and Ed Lasater Is the firm registered with the Secretary of State's Office to do business in Texas? Yes ir Are you in good standing with the State of Texas? Yes If you answered "No"to either of the above two questions, please explain Is the firm and/or principals delinquent on any federal, state or local tax obligations? No CV Has the company or principals of the company had prior bankruptcies or lawsuits? No If you answered "Yes"to either of the above two questions, please explain 1/3/19 1 MLI INFORMATION ABOUT THE PROJECT Project Name (MLI Use) 1801 Ave Q Property LCAD R# 56242 Property Ownership: Own F11 Lease ❑ Owner Approved ❑ Grant Type (Check One): Permittable ❑ Fagade ❑ Detailed Project Summary and Description of Work: Painting of exterior, chemical treatment of landscape, adding plants, tree pruning, transition to zero scape landscaping. Project's NAICS Code(North American Industry Classification System) 1721110 NAICS Description lHotels City Permit Total Amount(if applicable) Summary of Itemized Expenses: Projected MLI Approved Reimbursement(MLI USE) Painting $77,642 $0 Landscaping $138,814 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0 TOTAL $216,456 $25,000 Final bids will be used to calculate the project cost and grant amount. 113119 2 MLI Scope of work must be approved by the City of Lubbock The link below includes the City documents used to determine compliance: https://ci.lubbock.tx.us/departments/planning/design-guidelines The property owner or leasee is responsible for communicating directly with the City of Lubbock to determine if any aspects of the scope of work require permits or public improvements. Public Improvements may be required if the project meets all four of the following criteria: 1)Located within the CBD TIF area; 2yaluation of$100,000 or more; 3)Scope of work affects the fagade/exterior of the building and surrounding area 4p,building permit is required. CITY CONTACT Director of Business Development Office 806.775.3082 DOCUMENTS REQUIRED FROM THE APPLICANT At the time of application: Application (must be received prior to construction started or permits pulled) Written City Approval of: Permit Needs Public Improvement Needs Detailed/Itemized Construction Bids or Schedule of Values Before Picture (prior to construction beginning) Architectural Plans (if applicable) Architectural Renderings(if applicable) After completion of construction: Certificate of Occupancy or Similar City Document(Permit) City Written Verification of Guideline Compliance (Non-Permit) Proof of Payment: PAID Invoices Processed Checks, Bank or Credit Card Statements matching PAID invoices Applicant Signature: Date: 1/3/19 3 MLI 801 Ave Q Facade nmv TMq ��pp�9lrllill `=s� WNWtc erg � ;1 � I�� el � �•K `tt 'rte' �� +'�� r"' -;,,,+.s "."=wN r rl�''�u p i y �� w.N• 4•.G'l_. •• t ��ij;t it r - - , i I � Painting quote for 713 Hotel Operating LLC,dba:MCM Elegance Hotel&Suites Provided by:Ernesto Gonzales Scope of work Paint 2 coats of Hunter Green accents per pictures $65,000.00 Paint 1 coat of all other building surfaces with existing color $5,0W.00 Contractor Insurance $1,125.61 All prep, building washing,equipment,and painting supplies,(not including actual paint)included in this cost. All prices Include any applicable sales tax. Any anchors that are needed with be supplied Including removing and patching any affected areas. 713 Hotel Operating will cover the cost of the paint. A 10%draw will be paid upon agreement and other payments made weekly according to percent or work completed allowing for a M holdback until not more than 30 days of completion. Ernesto Gonzales Painting,herein acknowledges and affirms that Ernesto Gonzales Painting Is acting as an independent contractor in all aspects of the work to be performed under the submitted bid for services,and that Ernesto Gonzales Painting herein agrees to hold 713 Hotel Operating,LLC harmless and fully indemnify 713 Hotel Operating LLC against any and all claims,causes of action,or any other liability with respect to the performance of said work.Said indemnification shall Include,but not be limited to,any claims by subcontractors,vendors,agents and employees of Ernesto Gonzales Painting and shall include all attorney's fees,court costs or any other expenses Incurred by 713 Hotel Operating LLC with respect to the actions of Emesto Gonzales Painting In defense of any such action. Ernesto Gonzales Painting Is NOT acting in any manner as an employee of 713 Hotel Operating UC and 713 Hotel Operating LLC does not accept any responsibility for any representations or actions of Ernesto Gonzales Painting with respect to the services to be performed on the premises of 713 Hotel Operating uc. Signed.,"• Dated: Erne "s Signed: i Dated: �� r 713 Hotef Operating, C �i INVOICE Ernesto Gonzalez 1814 Pleasant Run Invoice No: 1001 Carrolliton,TX 75006 Date:7/62oia Customer ID GonPaint MCM Elegante Lubbock 801 Ave Q Lubbock.Tx 79401 a Due upon receipt Painting Qutstide of Budding Total Puce 370,000.00 Drew Due 7,000.00 Paid to Date 30 00 PTED Rri Subtotal TOTAL Make all checks payable to Ernesto Gonzalez THANK YOU FOR YOUR BUSINESSI Bravo Xteriors 7405 - N.County Road 1540 Shallowater, TX 79363 {806}789-7721 PO bravoxteriors@gmail.com http://www.bravoxteriors.com Ilk I V I t_% r_ INVOICE ATE 09 110/2018 DUE DATE 09/10/2018 TERMS Due on receipt BILL TO MGM Elegante Hotel revision 3 'MCM Elegante Hotel 801 Avenue Q Lubbock,Tx 79401 Please detach top portion and return with your payment. DATE ACTIVITY CITY RATE AMOUNT 09/10/2018 Chemical 3 100.00 300.00 Spray landscape areas &turf area flowerbed inserts. 3 applications 3 types of herbicide for areas to be excavated. Bermuda grass must be sprayed while actively growing. preferably prior to September 15th. Excavation cannot begin until 2 full weeks after initial application. 09/10/2018 Labor:Labor 3 115.00 345.00T Herbicide labor& mobilization 09/10/2018 Labor:Labor 1 9,800.00 9,800.00T All tree work, prune 37 large trees, 6 small trees, remove 1 large tree, Stump grind large tree stumps and previously removed tree by new courtyard area, & removal. Interior courtyard added from previous quote 09/10/2018 Labor:Labor 1 8,000.00 8,000.00T Heavy equipment Excavate areas in landscape estimated 300-400 tons of excavated material to be hauled off 09/10/2018 Labor:Labor 1 7,000.00 7,000.00T Dump fees for excavated material and tree pruning. Only organic material quoted. Good root-free dirt will be re-used for berms. Excavation to 2"below adjacent concrete for xeriscape area. 09/10/2018 Labor:Labor 1 6,500.00 6,500.00T Miscellaneous man hours general labor- ,water compacting birms, removing fences, courtyard material removal via wheelbarrow, extraction of metal edging, pruning of ornamental trees not in contract (anything over 6'tall) removal and re-purposing of existing plants,excavating by hand near sensitive areas (near gas lines, electrical lines, or anywhere a machine cannot reach), fine leveling and creation of berms. 200-300 man hours labor 09/10/2018 Materials:Materials 1 5,800.00 5,800.00T Weed tarp materials for all gravel &jog blend areas plus necessary stakes 20 year commercial grade. Past-due bills may incur additional fees,in the amount of 1.5%per month. DATE= ACTIVITY QTY RATE AMOUNT 25k sq ft down from 28k sq ft 09/10/2018 Labor:Labor 1 6,250.00 6,250.00T Weed tarp installation labor for 25k sq ft 09/10/2018 Materials:Materials 24 240.00 5,760.00T Boulder budget 24 tons of boulders budgeted ranging from 200 to 2000 lbs. estimated 90 boulders. .12c per lbs wholesale price only available with full 24 ton semi truck delivery. Small boulder outcroppings in gravel areas, large single boulders in jog path blend areas. Boulders must be taxed -purchased and shipped from Oklahoma- 09/10/2018 Labor:Labor 16 150.00 2,400.00T Boulder nstallation with heavy equipment. Smallest boulder 200 lbs, largest 3500 lbs spread throughout the property billed per machine hour 09/10/2018 Materials:Materials 22 75.00 1,650.00 Plant& tree soil with hydretain moisture retention granules to prevent need for excessive watering 70/30 screened topsoil/compost with hydretainTM additive reduce watering by 50% 09/10/2018 Materials:Materials 1 11,000.00 11,000.00T Plant materials list included in attachment. Plant material increased from previous bid, price reduced citing local provider going out of business offering reduced prices. Some plant availability will be reduced as the year progresses. Updated plant list provided. 09/10/2018 Labor:Labor 1 12,000.00 12,000.00T All plant/tree installation labor,tree staking, compost incorporation, delivery, temp watering prior to installation. Increased from previous bid due to increase in overall plant material. 09/10/2018 Materials:Materials 75 51.00 3,825.00T Decorative gravel 1-2" local. 2500 sq ft added from previous bid to account for area not in exteriors courtyard design, and portion of gravel not to be re- used inside of courtyard 3"thickness 09/10/2018 Labor:Labor 75 65.00 4,875.00T Decorative gravel installation labor(interior courtyard nor parkhill designed new courtyard included, need more direction prior to designing) 09/10/2018 Material s:Materials 141 45.00 6,345.00T Jog blend see houzz link (interior courtyard not included, need more direction prior to designing) Area increased from previous bid to include interior and exterior courtyard. 09/10/2018 Labor:Labor 141 55.00 7,755.00T Jog blend labor and delivery (interior courtyard not included, need more direction prior to designing) 09/10/2018 Materials:Materials 1 3,500.00 3,500.00T Technisoil pathway stabilizer for berm areas with jog blend (HIGHLY RECOMMENDED TO PREVENT WASHOUT DURING HEAVY RAINS) 09/10/2018 Labor:Labor 6 250.00 1,500.00T Hand watering over 6 weeks to establish plant material - must be done by bravo xteriors employees to keep plant warranty. 09/10/2018 Labor:Labor 30 0.00 O.00T Initial landscape design man hours. 09/10/2018 Materials:Materials 700 4.20 2,940.00 Metal edging for flowerbeds inserted in grass areas - 20' 12 gauge heavy duty metal edging (not what you buy at lowes) added 100'for interior courtyards 09/10/2018 Labor:Labor 700 2.50 1,750.00T Past-due bills may incur additional fees,in the amount of 1.5°/per month. DATE ACTIVITY QTY RATE AMOUNT Metal edging installation 09/10/2018 Materials:Materials 1 1,850.00 1,850.00T New 40' linear fence 6' cedar to replace area in north entrance. 09/10/2018 Labor:Labor 1 0.00 O.00T THIS BID CONTAINS NO IRRIGATION repair or alteration due to current state of irrigation in near disrepair. Any irrigation work by licensed irrigator will be billed Qa $92.50 per hour if applicable plus materials 0 20% markup of wholesale prices & will require signed change order prior to initiating work. $35 per man hour on site employees performing any irrigation work. No damage by Bravo Xteriors for irrigation will be repaired at the cost of Bravo Xteriors as it is impossible to determine locatinon of piping, heads etc that are currently disfunctional. 09/10/2018 Labor:Labor 1 0.00 O.00T This bid is for majority of property outside of parkhill designed & proposed new courtyard and existing interior courtyard. outside of excavation of courtyard area(no concrete) nothing within courtyard design is included in this estimate. SUBTOTAL 111,145.00 TAX (8.25%) 8,766.04 TOTAL 119,91 1.04 BALANCE DUE $119,911 .04 Past-due bills may incur additional fees,in the amount of 1.5%per month. DATE ACTIVITY QTY RATE AMOUNT 09/18/2018 Materials:Materials 116 29.00 3,364.00T 116' 6' cedar fence 1 x6x6'tall. Flattop contemporary cedar with 1 x6x6 pickets. 09/18/2018 Materials:Materials 100 11.75 1,175.00T Concrete footer for fence around electrical transformer&courtyard. fence separating employee area and courtyard no concrete footer 09/18/2018 Materials:Materials 1 0.00 O.00T Re-use existing gates 09/18/2018 Materials:Materials 232 2.75 638.00T 116' stain both sides of fence wood defender stain. Materials and labor included in this line item This is an estimate based on prices at the date listed. Prices subject to SUBTOTAL 17,462.00 change. Thank you for considering us for this job. TAX (8.25%) 1,440.62 Bravo Xteriors Team TOTAL $187902.62 Accepted By Accepted Date Past-due bills may incur additional fees,in the amount of 1.5%per month. RE 19-19 RESOLUTION APPROVING 713 HOTEL OPERATING, LLC dba MCM ELEGANTE HOTEL & SUITES (801 AVE Q) DT FA(sADE GRANT THE STATE OF TEXAS COUNTY OF LUBBOCK At a regular meeting of the Board of Directors of MARKET LUBBOCK ECONOMIC DEVELOPMENT CORPORATION, INC., a Texas nonprofit corporation (MLI),on Wednesday, March 27,2019,held in conformity with the bylaws,after due notice as therein provided,a quorum being present and acting, the following resolution was unanimously adopted: WHEREAS, MLI presented to members of the Board the proposal of a possible Economic Dev. Grant and Contract to 713 Hotel Operating, LLC dba MCM Elegante Hotel &Suites, owned by Ed Lasater & John Bushman, at 801 Ave Q, Lubbock, TX. The terms and conditions of such Economic Development Grant and Contract,other than the normal terms and conditions applicable to all such ED Grant and Contracts by the Corporation, are described generally as follows, to wit: Grant for 713 Hotel Operating, LLC, dba MCM Elegante Hotel & Suites, a Facade Grant in the amount of$25,000 towards the cost of renovating the building at 801 Avenue Q, located within the Downtown TIF. The scope of work will include repainting the existing exterior surfaces, replacing fencing, and converting the landscaping to a zero-scape format including natural irrigation and new plants totaling$216,456, once proof of payment has been submitted. WHEREAS, The Board of Directors of MLI finds that an Economic Development Grant and Contract offering the incentive for providing assistance to renovate their facility meet and comply with the qualifications and purposes of the Corporation for the granting of such Economic Development Grants and Contracts. Upon Motion by Director, Ms. Regina Johnston,and Seconded by Dir.Mr.Matt Bumstead, IT WAS RESOLVED that MLI offer and, if accepted by Recipient,enter into an Economic Grant and Contract with 713 Hotel Operating, LLC dba MCM Elegante Hotel & Suites 801 Avenue Q, Lubbock, Texas. This Economic Development Grant and Contract will be on the normal terms and conditions of such Downtown Grant Program and Contract offered by MLI to existing businesses and business prospects and authorize the CEO to enter into and execute all documents related to the Economic Grant and Contract. John Osborne, President &CEO Linda Davis, Secretary