HomeMy WebLinkAboutResolution - 2121 - Letter Agreement - Fantasea Isle - Water Theme Park, Mackenzie Park - 08/22/1985DGV:da
RESOLUTION
Resolution #2121
August,:22, 1985
Agenda Item #30
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 Letter
Agreement between the City of Lubbock and FantaSea Isle, a California
Partnership, for the construction of a Water Theme Park in Mackenzie State
Park in Lubbock, Texas, attached herewith, which 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 22nd day of August , 1985.
AL4NRY,-MAYO
ATTEST:
Ranett Boyd, City Secretary
APPROVED AS TO CONTENT:
Robert Massengale,/Assistant City
Manager for Financial Services
APPROVED AS TO FORM:
DcKaia u. Vandiver, HssZs
Attorney
ALAN HENRY
MAYOR
CITY OF LUBBOCK
LUBBOCK, TEXAS
Mr. H. Jay Harkins
Mr. William E. Lynch
FantaSea Isle
290 Garbada Way
Portola Valley, CA 94025
August 26, 1985
Re: Mackenzie Water Theme Park, Lubbock, Texas
Dear Sirs:
It is our understanding that FantaSea Isle, a California Partner-
ship, desires to construct and operate a Water Theme Park in
Mackenzie State Park in Lubbock. As you know, the City of
Lubbock holds all of the concession rights in Mackenzie State
Park and has authority to enter into a subconcession agreement
with FantaSea Isle. It is the intention of the City of Lubbock
and FantaSea Isle to enter into conclusive negotiations to obtain
a subconcession agreement suitable to both parties and to assist
bond counsel and underwriters to secure financing for Water Theme
Park.
It is mutually understood and agreed that:
(1) That the total cost of the project will be approxi-
mately $4.7 million, with each party to provide
financing for approximately half of the final cost.
(2) That FantaSea Isle will finance its portion of the
final cost by means of Small Issue Industrial Develop-
ment Bonds.
(3) That the City of Lubbock will furnish its portion of
the final cost by means of Certificates of Obligations
backed by revenues from the Water Theme Park and a
pledge of taxes, if required.
(4) That FantaSea Isle will be the developer and operator
of the swimming sports facilities and that the City of
Lubbock will provide the park facilities.
Mr. H. Jay Harkins
Mr. William E. Lynch
August 26, 1985
Page 2
(5) That the revenues after operating expenses from the
Water Theme Park will first go to debt service on the
Industrial Development Bonds then to debt service on
the Certificates of Obligation and remaining revenues
will be divided 800' to FantaSea Isle and 200' to the
City of Lubbock.
(6) That the project will include, but not be limited to,
the following facilities: Wave Swimming Pool, Activity
Swimming Pool, Tube Ride, two Water Slides, Bathhouse,
Restaurant, Concession -Craft Terrace, Multi -use
Building, Children's Play Area, Group Picnic Area,
Parking Area, and Amphitheater.
(7) That a final agreement will be negotiated and executed
no later than November 1, 1985.
(8) That major facility construction under reasonable
circumstances will be completed by June 30, 1986.
FantaSea TsIn:
Attest:
Secr 6 tart'
Attest:
City 'Secretary