Loading...
HomeMy WebLinkAboutResolution 1142 w A eso RESOLUTION NO. v?L WHEREAS, THE DFW Airport Board (Board) is the lessor of certain hotel and recreation facilities located at DFW Airport and comprised generally of the West Tower Hotel, the East Tower Hotel and the Bear Creek Resort; and WHEREAS, Amworth Associates (Amworth) is the Board's lessee under the West Tower Hotel Lease; and WHEREAS, Amfac, Inc. (Amfac) is the sublessee and operator of the West Tower Hotel and the lessee and operator of the East Tower Hotel and the Bear Creek Resort; and WHEREAS, Amworth and Amfac desire to assign their respective lease- hold interests in the Hotels and Bear Creek Resort to DFW Airport Hotel Associates (Associates); and WHEREAS, Associates desires to acquire the respective Hotel and Bear Creek interests of Amworth and Amfac but only if the Board will agree, following assignment thereof, to amend and restate the various leases to include, among other changes., a new term, with extension options of 99 years, all as described in a Letter Agreement between the Board and Associates, approved by the Board on March 20, 1986; and WHEREAS, as an additional precondition to its acquisition of the Hotel and Bear Creek leases, Associates desires agreement from the Board that, following assignment, it will grant Associates a 10-year option and right of first refusal to lease additional land for golf course, conference and recreational facilities (the Expansion Lease), the term of which lease would be co-terminous with the New Bear Creek Lease; and WHEREAS, pursuant to State law, any Airport lease which, with extension or renewal options, exceeds 40 years must also be approved by the Cities of Dallas and Fort Worth: NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH: SECTION 1. That the New Leases and the Associates Agreement between the DPW Airport Board and DFW Airport Hotel Associates governing the hotel and recreation facilities at DFW Airport, and more fully described in Exhibit "A" which is attached hereto, are hereby approved. O ^" PT WORTH SECTION 2. That the City Manager is hereby authorized to further signify the Council's approval by execution of the New Leases and Associates Agreement. SECTION 3. That this resolution shall take place immediately from and after its passage. ADOPTED this 8th day of April, 1986. Mayor ATTEST: City Secretary L 0 V.-. ^rp PORT O Amfac, Inc. is the lessee and operator of the DFW Airport Hotel and of the Airport's Bear Creek Resort. It wishes to assign its interest in those leases to DFW Airport Hotel Associates (the Associates), a joint venture between HT-DFW, an affiliate of Hyatt Development Corporation and Hunt/DFW Hotel, Ltd., an affiliate of Woodbine Development Corporation. Associates was not interested in acquiring the leases from Amfac unless the Airport Board would agree in advance to various amendments to those leases. Among the requested lease changes was an extension of the term of each of the leases from 40 years at present to a new 40-year term with additional option periods of 20, 20 and 19 years. Under state law, Airport leases running longer than 40 years must also be approved by the Dallas and Fort Worth City Councils. Therefore, the Lease amendments (the New Leases) which have already been approved by the Airport Board are now being submitted to the respective City Councils for approval. The New Leases will be more fully described and discussed at the Council briefing. However, their most significant points, in addition to the extended term, are as follows: 1. Under the existing leases, the ground rent is equivalent to the standard per acre ground rent that was in effect at the time the leases were executed. Under the New Leases, the ground rent will be updated to the higher per acre rate presently in effect and will increase over time as that standard rate continues to increase. Otherwise, during the initial 40 year term, the rental structure (including percentage rent and net rent) will remain unchanged. Note: Net rent is rent calculated to pay the debt service on the outstanding bonds used to finance the hotel and recreation facilities. 2. During any option term, the rent will be the greater of the than-current standard per acre ground rent or an appraised market rental (including ground and percentage rents). 3. Associates will be given a 40-year right of first refusal to lease acreage adjacent to the existing Bear Creek resort to develop up to 36 additional holes of golf, and to build conference, hotel and other recreation facilities. Upon exercise of that right, the acreage will be covered by a lease coterminous with and substantially the same as the new Bear Creek Lease. 4. Associates will be given a 40-year right of first refusal on additional hotels at the Airport. 5. Associates, or its affilitates, will be prohibited from owning or operating comparable hotels within an airport hotel market area generally defined by State Highways 157, 183, 121 and 114 and by Beltline Road as they together bound the Airport and by the Denton/Dallas County line, where they do not, unless an expert approved by the Airport Board finds that it would not divert business from the Airport's hotel. 6. Amfac will remain unconditionally obligated as a guarantor of the Net Rent payments. EXHIBIT "A"