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HomeMy WebLinkAboutResolution - 5491 - Amendment #1 To Management Agreement - Fore Star Golf Inc - 05_22_1997RESOLUTION NO.5491 Item #19 May 22, 1997 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock a First Amendment to a Management Agreement by and between the City of Lubbock and Fore Star Golf, Inc., and any associated documents, which Agreement shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this day of Tray 1997. 1f NDY N, MAYOR ATTEST: ayt i Darnell, City Secretary APPROVED 'r"0 CONTENT: n rolyp(/Ahiafnus, Nftnaggac -Director of and Leisure APPROVED AS TO FORM: a ms: k ) (j � I r " -1 DVnald G. Vandiver, First Assistant City Attorney DG V:gs/ccdocs1ForeStr.res May 12, 1997 RESOLUTION NO.5491 Item #19 May 22, 1997 FIRST AMENDMENT STATE OF TEXAS § MANAGEMENT AGREEMENT COUNTY OF LUBBOCK § WHEREAS, on or about the 14th day of October, 1994, The City of Lubbock, Texas ("City'), and Fore Star Golf, Inc.("Manager"), entered into a Management Agreement, which the parties hereto for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, desire to amend as is hereinafter set forth. 1) Section 3.2 of the Management Agreement shall be amended to read as follows: "3.2. peposits to Golf Course Fund. On or before the tenth day of each month during the term of this Agreement, Manager shall provide City a report summarizing the Golfing Revenues for the previous calendar month. On or before the fifteenth day of each month during the term of this Agreement, an amount equal to all Golfing Revenues received by the City or Manager for the preceding calendar month shall be deposited in the Deposit Account of the Golf Course Fund. At the opening and closing of each Business Day, the balance in the Deposit Account of the Golf Course Fund will be $0.00." 2) Subsection 3.4(b) of the Management Agreement shall be amended to read as follows: "(b) On or before the fifteenth day of each month during the term of this Agreement and on which an Event of Default has not occurred and is not continuing, Golf Revenues, or the applicable Percentage Payment, shall be withdrawn by the City from the Deposit Account of the Golf Course Fund as set forth in Section 3.3. All money remaining in the Deposit Account of the Golf Course Fund following the required deposit to the Capital Fund and the required payment to Manager shall be transferred by City to the General Account of the Golf Course Fund. On the date of any Event of Default by Manager and during the continuance thereof, all money in the Deposit Account of the Golf Course Fund shall be transferred by City to the General Account of the Golf Course Fund." 3) Section 8.8 of the Management Agreement shall be amended to read as follows: "8.8. Irrevocable Letter of Credit. Manager shall secure from a bank, the senior debt obligations of which are rated by a national rating service in one of the three highest investment grade ratings, an irrevocable letter of credit in the amount of Two Hundred Fifty Thousand ($250,000) payable on demand to City conditioned upon the full and complete performance of all Phase I Capital Improvements set forth in Phase I of this Agreement, subsections (a) through 0) as herein defined in Section 1.1 of this document. Upon full and complete performance of all Phase I Capital Improvements, as hereinabove defined, Manager shall be released from the requirement of continuing the irrevocable letter of credit secured as above set forth. The letter of credit shall upon said full and complete performance of all Phase I Capital Improvements be delivered by City to Manager for cancellation." 4) Except as specifically amended hereby, all terms of said Management Agreement by and between the parties shall be and remain in full force and effect. EXECUTED this 22nd day of May , 1997. FOREST GOLF, INC.: CITY OF LUBBOCK: BY: L ' "DYSIfT-(*, MAYOR ATTEST: Secretary ATTEST: City Secretary TO Aliamus, MaNaging of Culture and Leisure APPROVED AS TO FORM: nald G. Vandiver, First Assistant City Attorney May-27-97 03:41P Lubbock Civic Center 806 762 5S03 &. - .S q I P_02 Cicy of Lubbock 1 501 6zh Street Lubbock, Texas 79401 606-767-2241 FAX 606-762-5603 Culture and Leisure Services 1, Steve Yonke, President, Fore Star Golf, Inc., have received on this 27th day of May, 1997 from the City of Lubbock, the irrevocable Standby Letter of Credit No. 145272, issued in Dallas, Texas on December 14, 1994 by Nations Bank_ Letter of Credit is hereby returned upon said full and complete performance of all Phase I Capital Improvements to Meadowbrook Golf Complex. Steve Ynke, esident Date re Star Gol�, Inc.