HomeMy WebLinkAboutResolution 3611-04-2008A Resolution
NO 3611-04-2008
AUTHORIZING THE CITY ATTORNEY TO RETAIN
THE LAW FIRM OF KELLY HART & HALLMAN, LLP FOR ASSISTANCE
REGARDING CONDOMINIUM DECLARATIONS
RELATED TO THE OMNI HOTEL PROJECT
WHEREAS, pursuant to Crty Secretary Contract No 31736 as amended by City Secretary
Contract No 36169 (collectively the `Lease'), Omni Fort Worth Partnership, L.P ("Omni') leases real
property owned by the Crty of Fort Worth ("Crty") that is located directly to the west of the Fort Worth
Convention Center (the `Leased Property"), as more specifically described m the Lease, and
WHEREAS, the Lease authorizes Omm to construct a hotel, parking garage, and a residential
condominium tower on the Leased Property and anticipates that each of these improvements will be
divided into separate condominium amts, with the residential tower further sub-divided into separate
residential hvmg units, and
WHEREAS, pursuant to Section 3.5 of the Lease, the Crty is required to cooperate with Omni as
reasonably necessary to create the condominium regime anticipated by the Lease and to subordinate its
mterest m the Lease to the rights and interests of the owners of the separate residential units, as well as
to execute all documents evidencing such subordination, and
WHEREAS, the law firm of Kelly Hart & Hallman, LLP has substantial expertise m the area of
condominium law and has agreed to represent the Crty m this matter
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT
WORTH, TEXAS
I.
That the Crty Attorney is hereby authorized to retain the law firm of Kelly Hart & Hallman, LLP
as outside counsel pursuant to Section 3 Chapter VI of the Crty Charter to assist the Crty Attorney m
reviewing all condominium declarations proposed by Omni and negotiating all documents necessary to
for the City to evidence the subordination of its mterest m the Ground Lease to owners of the separate
residential units m the residential tower
RESOLUTION N0, 3611.041008
II.
That the compensation to be paid to the law firm of Kelly Hart & Hallman, LLP shall not exceed
$3,318 00
AND IT IS SO RESOLVED
Adopted this 1st day of, 2008
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APPP01lED
CITY COUNGIL
APR 0 1 2008
City Secretary of the
City of Fort Worth, Texas
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION Approved on 4/1/2008 Res. No # 3611-04-2008
DATE Tuesday April 01 2008
LOG NAME 120MN1 REFERENCE NO **G 16092
SUBJECT
Adopt Resolution Authorizing the City Attorney to Retain the Law Firm of Kelly Hart and Hallman
LLP for Assistance Regarding Condominium Declarations Related to the Omni Hotel Project
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution authorizing the City Attorney to
retain the law firm of Kelly Hart and Hallman LLP for assistance in reviewing and negotiating condominium
declarations and related subordination agreements pertaining to the Omni Hotel project.
DISCUSSION
The City has entered into a Tax Abatement Agreement and an Economic Development Program Agreement
under which the City wilt provide certain economic incentives to Omni Fort Worth Partnership L.P (Omni)
in return for its construction and operation of an approximately 600-room convention center headquarters
hotel The City has also entered into a number of related agreements with Omni including a lease of the
City-owned property on which the hotel and other improvements constructed by Omni will be located City
Secretary Contract No 31736 as amended by City Secretary Contract No 36169 (Ground Lease)
The Ground Lease authorizes Omni to construct a hotel parking garage and a residential condominium
tower on the property and anticipates that each of these improvements will be divided into separate
condominium units with the residential tower further sub-divided into separate residential living
units Pursuant to Section 3 5 of the Lease the City is required to cooperate with Omni in creating the
condominium regime anticipated by the Lease and to subordinate its interest in the Lease to the rights and
interests of the owners of the separate residential units, as well as to execute all documents evidencing
such subordination In other words the intention here is to protect the owners of the residential
condominiums from any risk of losing their homes if Omni were ever to breach the Lease
Condominium law and the real estate interests involved with condominium regimes requires special legal
expertise of a nature that the City typically does not deal with in its regular course of business As a result,
the City Attorney is requesting the City Council's consent for retention of Andy Rogers at Kelly Hart &
Hallman LLP for assistance in this matter The cost for this service is $3 318 In accordance with the City
Charter the City Council must adopt a Resolution and provide authorization for this service
FISCAL INFORMATION/CERTIFICATION
The Finance Director certifies that funds are available in the current operating budget, as appropriated of
the General Fund
Logname 120MNI Page 1 of 2
TO Fund/AccountlCenters
FROM Fund/Account/Centers
GG01 538110 0121000 3 318.00
Submitted for City Manager's Office by. Karen Montgomery (6222)
Oriainatina Department Head. David Yett (7623)
Additional {nformation Contact: Peter Vaky (7601)
Logname I2OMNI Page 2 of 2