HomeMy WebLinkAboutContract 36660 CITY SECRETARY
"ONTRA CT NO.
AMENDMENT NO. 3 TO
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
(CITY SECRETARY CONTRACT NO. 33870)
This AMENDMENT NO. 3 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 Nos. 34442 and
35075 (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 a minimum number of Full-time Equivalent Jobs be
provided and filled on the Hotel Property (the Overall Employment Commitment) and
that a minimum number of those Full-time Equivalent Jobs be held by Fort Worth
Residents and Central City Residents (the Fort Worth Employment Commitment and the
Central City Employment Commitment, respectively). Due to a change in the scope of
the Project, Developer has requested that the Agreement be amended to reduce the
minimum number of Full-time Equivalent Jobs required for the Overall Employment
Commitment, the Fort Worth Employment Commitment, and the Central City
Employment Commitment.
C. The Agreement provides that the City will waive certain temporary encroachment
fees for partial street closures associated with construction of the Project for specific
periods of time. Due to delays in construction of the Project, Developer has requested
that the City increase the amount of temporary encroachment fee waivers and extend the
time periods in which encroachment fee waivers will be available.
D. Because of the public benefits that the City will receive from the Project, as
outlined in the Recitals of City Secretary Contract No. 33870, the City is willing to
amend the Agreement in order to address Developer's requests herein.
Page 1 02-21 - " •A I Pl
Amendment No.3 to CSC No.33870,as previously amended .`_..
Economic Development Program Agreement with Presidio Hotel Fort Worth,L.P. °1�
P g g s r JvJr: 1. (A
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. Section 4.3 of the Agreement (Employment Commitments) is hereby amended so
that Section 4.3.1 (Overall Employment), Section 4.3.2 (Fort Worth Residents), and
Section 4.3.3 (Central City Residents)read as follows:
4.3.1. Overall Employment.
Beginning in the first full calendar year following the year
in which the Completion Date occurs and in each calendar year
thereafter during the Term of this Agreement, at least one hundred
seventy-five (175) Full-time Equivalent Jobs will be provided and
filled on the Hotel Property (the "Overall Employment
Commitment").
4.3.2. Fort Worth Residents.
Beginning in the first full calendar year following the year
in which the Completion Date occurs and in each calendar year
thereafter during the Term of this Agreement, (i) at least fifty
percent (50%) of all Full-time Equivalent Jobs provided on the
Hotel Property, regardless of the total number of Full-time
Equivalent Jobs so provided, or (ii) at least eighty-eight (88) Full-
time Equivalent Jobs, whichever is greater, will be filled with Fort
Worth Residents (the "Fort Worth Employment Commitment").
Full-time Equivalent Jobs counted toward the Central City
Employment Commitment, as provided in Section 4.3.3, shall also
be counted toward the Fort Worth Employment Commitment.
4.3.3. Central City Residents.
Beginning in the first full calendar year following the year
in which the Completion Date occurs and in each calendar year
thereafter during the Term of this Agreement, (i) at least twenty-
five percent (25%) of all Full-time Equivalent Jobs provided on the
Hotel Property, regardless of the total number of Full-time Jobs so
provided, or (ii) forty-four (44) Full-time Equivalent Jobs,
whichever is greater, will be filled by Central City Residents (the
"Central City Employment Commitment").
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Amendment No.3 to CSC No.33870 as previously amended
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Economic Development Program Agreement with Presidio Hotel Fort Worth,L.P.
2. Section 7.1 (Waiver of Certain City Fees), subsection (iii) of the Agreement is
hereby amended to read as follows:
(iii) (a) temporary encroachment fees for encroachments lasting no more
than one hundred (180) calendar days in calendar year 2006; (b)
temporary encroachment fees for partial closures of the following streets
(as required for the Project and in accordance with all City policies) for
the following time periods: Calhoun Street between 15th Street and
Lancaster Avenue from February 1, 2007 until January 31, 2008,
Commerce Street between 15th Street and Lancaster Avenue from
February 1, 2007 until October 31, 2007, and 15th Street between Calhoun
and Commerce Streets from February 1, 2007 until October 31, 2007; and
(c) temporary encroachment fees not to exceed $76,244.34 in aggregate
value for partial closures of the following streets (as required for the
Project and in accordance with all City policies) for the following time
periods: Calhoun Street between 15th Street and Lancaster Avenue from
February 1, 2008 until June 1, 2008, Commerce Street between 15th Street
and Lancaster Avenue from November 1, 2007 until June 1, 2008, and
15th Street between Calhoun and Commerce Streets from November 1,
2007 until June 1, 2008.
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.
CITY OF FORT WORTH: PRESIDIO HOTEL FORT WORTH,
L.P., a Texas limited partnership:
By: Presidio H el GenPar, LLC, a
Texas limit d liability company:
By: By:
DaIe Eisele.. T L 1GG/NS Sush atel
A CT l 1�l C. Assistant City Manager Man a
Date: (� Date: 2
Page 3
Amendment No.3 to CSC No.33870,as previously amended
Economic Development Program Agreement with Presidio Hotel Fort Worth,L.P.
APPROVED AS TO FORM AND LEGALITY:
By:
Peter Vaky
Assistant City Attorney
M&C:_C-22670 2-/9-08
Attested Bye
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Amendment No.3 to CSC No.33870,as previously amended ' '��
Economic Development Program Agreement with Presidio Hotel Fort Worth,L.P.
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/19/2008
DATE: Tuesday, February 19, 2008
LOG NAME: 17SHERATONAMEND REFERENCE NO.: **C-22670
SUBJECT:
Authorize 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
Agreement 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.
During the past year, Presidio has experienced unanticipated delays resulting in the need for additional
encroachment fee waivers from the City to match the longer construction schedule for the project.
The attached amendment provides for the additional waiver of temporary encroachment fees due to partial
closures of the following streets:
Calhoun Street between 15th Street and Lancaster
Commerce Street between 15th Street and Lancaster
15th Street between Calhoun and Commerce
The waiver will be facilitated by the granting of a credit in the amount of $76,244.34 applicable towards
temporary encroachment fees incurred retroactively to November 1, 2007. The credit will expire on June 1,
2008.
The amendment also adjusts Presidio's commitment of full time employees (FTEs) from 250 to
175. Presidio's commitments for employment of Fort Worth residents will be adjusted from the greater of 50
percent of FTEs or 125 FTEs to the greater of 50 percent of FTEs or 88 FTEs. Presidio's commitments for
employment of Fort Worth Central City residents will be adjusted from the greater of 25 percent of FTEs or
62 FTEs to the greater of 25 percent of FTEs or 44 FTEs.
Otherwise, the structure and terms of the Agreement will remain the same as previously approved by the
City Council.
This project is in COUNCIL DISTRICT 9.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/28/2008
Page 2 of 2
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office b Tom Higgins (Acting) (6140)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Mark Folden (8634)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/28/2008