HomeMy WebLinkAboutResolution - 2007-R0008 - Amendment To Agreement - Overton Park Hotel LP, Garfield Traub Development LLC - 01/12/2007Resolution No. 2007-R0008
January 12, 2007
Item No. 5.19
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor Pro Tem of the City of Lubbock BE and is hereby authorized
and directed to execute for and on behalf of the City of Lubbock a 2nd Amendment to the
Master Development Agreement with Overton Park Hotel, LP and Garfield Traub
Development LLC. Said Amendment is attached hereto and incorporated in this
Resolution as if fully set forth herein and shall be included in the minutes of the Council.
Passed by the City Council this 12th day of January '2007.
ATTEST:
City Secretary
APPRO ED AS TO CONTENT:
Rob Al ' n, A ity Manager
Business Development
APPROVED AS TO FORM:
Linda L. Chamales, Senior Attorney
Office Practice Section
City att / Linda / Res — 2sd MDA Amendment
January 4. 2007
Resolution No. 2007 80008
January 12, 2007
Item No. 5.19
AMENDMENT NO.2 TO MASTER DEVELOPMENT AGREEMENT
BETWEEN
CITY OF LUBBOCK, TEXAS, OVERTON PARK HOTEL, LP AND
GARFIELD TRAUB DEVELOPMENT, LLC
As a result of duties performed during the Design Development Period, as defined in the
Master Development Agreement ("Agreement') between the City of Lubbock, Texas,
Overton Park Hotel, LP, and Garfield Traub Development LLC ("Parties"), the Parties
desire to amend the Agreement as follows:
1. Project Development
The Conference/Civic Center portion of the City Facilities described in Recital I and in
sub -section 2.1.1(a)(i) shall increase from approximately 30,000 square feet to
approximately 50,000 square feet.
2. Project Financing
The expected stabilized value for the Project in Recital I and in sub -section 3.2.3 shall be
increased from more than $35 million to more than $59 million.
The amount of City obligation in Recital I, sub -section 3.2.4, and sub -section 4.1.1(j)
shall be increased from $8,400,000 to $11,400,000.
3. Project Agreements
The following language shall be added to paragraph (a) of subsection 4.2.3. Citv
Facilities Lease:
"Owner intends to charge a Conference Center User Fee (or a similarly named
fee) to all hotel guests equal to one -percent (1.0%) of their total daily room charge
for a period of twenty (20) years from the date of opening of the hotel. This fee
will be paid on a quarterly basis to the City to help amortize the municipal bonds
or other obligations issued to finance construction of the conference center. If
Owner decides for any reason not to charge the Conference Center User Fee
during the first four years, Owner will pay to City annually an amount equal for
one -percent (1%) of the total daily room charge received per year. After four
years, if Owner, in its sole discretion, decides for any reason not to charge the
Conference Center User Fee, then the annual incentive rent (noted above) shall
equal the greater of (a) $65,000 plus annual CPI increases plus an amount equal to
one -percent (1%) of the total daily room charge received per year, or (b) 15% of
all net annual cash flow payment described above plus an amount equal to one -
percent (1%) of the total daily room charge received per year."
This amendment is effective as of January 12 , 2007.
CITY OF LUBBOCK, TEXAS OVERTON PARK HOTEL, LP
By: GTHC Overton Park GP, LP,
A Texas Limited Partnership, As
General Partner
DAVID A. MILLER, MAYOR
n ATTEST:
APPROVED -A-870 CONTENT:
l�
Rob AllisgvelOpment sis tCi Manager
Business
By: Gal -Tex Hotel Corporation,
a Texas Corporation, As
General Partner
By:
Name: EUGENE LUCAS
Title: President
GARFIELD TRAUB DEVELOPMENT LLC
APPROVED AS TO FORM:
By:
N G IE J
Title: M
Linda L. Chamales, Senior Attorney
Office Practice Section