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AMENDMENT NO. 2 TO
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
(CITY SECRETARY CONTRACT NO. 33870)
This AMENDMENT NO. 2 TO ECONOMIC DEVELOPMENT PROGRAM
AGREEMENT ("Amendment") is made and entered into by and between the CITY
OF FORT WORTH ("City"), a home rule municipal corporation organized under the
laws of the State of Texas, and PRESIDIO HOTEL FORT WORTH, L.P.
("Developer"), a Texas limited partnership acting by and through Presidio Hotel GenPar,
LLC, a Texas limited liability company and Developer's general partner.
The following introductory provisions are true and correct and for the basis of this
Amendment:
A. As of August 14, 2006 the City and Developer entered into that certain Economic
Development Program Agreement on file in the City Secretary's Office as City Secretary
Contract No. 33870, as previously amended by City Secretary Contract No. 34442
(collectively, the "Agreement"). Under the Agreement, Developer agreed, among other
things, to construct certain improvements to the Hotel owned by Developer and located at
1701 Commerce Street in the City, which most recently operated as the Plaza Hotel. In
return, the City agreed to pay Developer certain Program Grants as authorized by Chapter
380 of the Texas Local Government Code and outlined in the Agreement.
B. The Agreement requires that by the Completion Deadline, which is defined in the
Agreement as October 1, 2007, certain minimum Construction Costs be expended for
redevelopment of the Hotel, that a final certificate of occupancy have been issued for at
least 400 guest rooms and all restaurants and meeting spaces in the Hotel and that the
Hotel be fully open for business and operating under a First Tier Flag. Due to delays in
the closing on financing for this project, Developer has requested that the City amend the
Agreement to extend the Completion Deadline from October 1, 2007 to December 31,
2008. The City supports this project and is willing to enter into such an amendment.
C. The Agreement provides that the City will waive temporary and permanent
encroachment fees for encroachments lasting no more than one hundred eighty (180)
calendar days. Developer has already received temporary encroachment fee waivers for
one hundred eighty (180) calendar days. Due to delays in construction of the Project,
Developer has requested that the City consent to additional encroachment fee waivers.
Due to the public benefits that the City will receive from the Project, as outlined in the
Recitals of the Agreement, the City is willing to grant such additional waivers, as set
fnrth in this Amen�lment_
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Page 1
Amendment No. 2 to CSC No. 33870, as previously amended
Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P.
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the City and Developer hereby agree as
follows:
1. The definition of Completion Deadline, as set forth in Section 2 of the
Agreement, is hereby amended to read as follows:
Completion Deadline means December 31, 2008.
2. Section 7.1, subsection (iii) of the Agreement is hereby amended to read as
follows:
(iii) temporary encroachment fees for encroachments lasting no more than
one hundred (180) calendar days in calendar year 2006 and, and as
required for the Project and in accordance with all applicable City policies,
encroachments for partial closures of the following streets for the
following time periods: (a) Calhoun Street between 15th Street and
Lancaster Avenue from February 1, 2007 until January 31, 2008; (b)
Commerce Street between 15th Street and Lancaster Avenue from
February 1, 2007 until October 31, 2007; and (c) 15th Street between
Calhoun and Commerce Streets from February 1, 2007 until October 31,
2007.
Developer hereby acicnowledges and agrees that the City has fulfilled its
obligation to grant Developer a waiver of temporary encroachment fees for
encroachments lasting one hundred eighty (180) calendar days in calendar year 2006.
3. All terms in this Amendment that are capitalized but not defined shall have the
meanings assigned to them in the Agreement.
4. All terms and conditions of the Agreement that are not expressly amended
pursuant to this Amendment shall remain in full force and effect.
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE]
Page 2
Amendment No. 2 to CSC No. 3387Q as previously amended
Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P.
CITY OF FORT WORTH:
By: ,�G
Dale��sseler
Assistant City
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Date: c�---
C�
APPROVED AS TO FORM AND LEGALITY:
By:
�
Peter Vaky
Assistant City Attorney
M&C: C-22001 03-06-07
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PRESIDIO HOTEL FORT WORTH,
L.P., a Texas limit�d partnership:
By: Presidio H
Texas limi
C
Sushil
GenPar, LLC, a
liability company:
Date: /' ��
Page 3
Amendment No. 2 to CSC No. 33870, as previously amended
Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/6/2007
DATE: Tuesday, March 06, 2007
LOG NAME: 17EDPASHERATON
Page 1 of 2
REFERENCE NO.: C-22001
SUBJECT:
Authorize the Execution of an Amendment to City Secretary Contract No. 33870, Economic
Development Program Agreement with Presidio Hotel Fort Worth, L.P., Related to Redevelopment
of the Plaza Hotel
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute the attached amendment to
the Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P., (City Secretary
Contract No. 33870), as previously amended.
DISCUSSION:
On February 28, 2006, the City Council authorized execution of an Economic Development Program Grant
with Presidio Hotel Fort Worth, L.P. (Presidio) for the redevelopment of the Plaza Hotel located at 1701
Commerce Street, which will be re-branded as a Sheraton Grande.
During the past year, Presidio has experienced unanticipated delays while securing financing, which has
been obtained recently. However, because of the delays sufficient time is now not available for the
redevelopment to be finalized by the Completion Deadline as required by the Agreement. In addition,
Presidio has requested additional encroachment fee waivers from the City to match the longer construction
schedule for the project.
The attached amendment will extend the Completion Deadline from October 31, 2007 to December 31,
2008. In addition, the amendment will provide for the waiver of temporary encroachment fees due to partial
closures of the following streets for the following time periods:
Calhoun Street between 15th Street and Lancaster, February 1, 2007 through January 31, 2008
Commerce Street between 15th Street and Lancaster, February 1, 2007 through October 31, 2007
15th Street between Calhoun and Commerce, February 1, 2007 through October 31, 2007
Otherwise, the structure and terms of the Agreement will remain the same.
This project is in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that no expenditure of funds is associated with approval of this amendment.
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 3/12/2007
TO Fund/AccountlCenters
Submitted for City Manager's OfFice b�
Originating Department Head:
Additional Information Contact:
FROM Fund/AccountlCenters
Dale Fisseler (6140)
Tom Higgins (6192)
Peter Vaky (7601)
Ardina Washington (8003)
Page 2 of 2
http://www.cfwnet.org/council�acket/Reports/mc�rint.asp 3/12/2007