HomeMy WebLinkAboutContract 11085-F1 RY
CONTRACT NO.
RECEIVED
APR -3 2020
CITY OF FORT WORTH
CITY SECRETARY New Fort Tower I Hotel Limited Partnership
c/o Ashford Hospitality Trust, Inc.
14185 Dallas Parkway, Suite 1100
Dallas, Texas 75254
March 20, 2020
By Federal Express and E-mail
City of Fort Worth
Property Management Department
900 Monroe Street, Suite 400
Fort Worth, Texas 76102
Attn: Jean Petr, M.P.A., Lease Manager,
Real Property — Lease Management
Jean.Petr( fortworthtexas oov
Re: That certain Lease Agreement(Parking Garage Lease) between The City of Fort Worth, a Texas
home-rule municipal corporation ("Landlord"), and (b) New Fort Tower I Hotel Limited
Partnership, a Delaware limited partnership ("Tenant"), dated April 30, 1980 (as assigned and
amended, the "Ground Lease"), for the lease of certain property located at 815 Main Street,
Fort Worth, Texas, commonly known as the Hilton Fort Worth (the"Hotel").
Ms. Petr:
As you are no doubt aware, the spread of COVID-19 is having an unprecedented impact on the travel
and hospitality industry. Like all hotels in the country, the Hotel is experiencing, and will continue to
experience, a severe drop in revenue that will negatively impact cash flow, potentially resulting in
operating losses for the foreseeable future. The daily governmental declarations and lockdowns in
response to the rapidly spreading epidemic constitute a force majeure event for which delays in
performance are both warranted and unavoidable. Accordingly, we request that the Landlord agree
to the following emergency proposal (the "Proposal") to ensure a viable pathway through the worst
of the current economic shutdown.
➢ No rental payments will be payable for the next 6 months (the "Forbearance Period").
➢ During the Forbearance Period, all rental obligations will accrue without interest, late fee or
penalty. The balance of all accrued but unpaid rental will be paid in full on October 1, 2020.
OFFICIAL, RECORD
CITY SECRETARY
FT. WORTH, TX
March 20, 2020
Page 2
During the Forbearance Period, Landlord will not declare any default or seek to exercise any
remedies against Tenant on account of nonpayment of rental.
We believe that our proposal creates the best chance of a successful outcome in which the Ground
Lease can be fully paid current once the economy recovers. Thank you for your consideration and
prompt attention to our Proposal.
March 20, 2020
Page 3
Please do not hesitate to reach out if you have any questions.
Sincerely,
New Fort Tower I Hotel Limited Partnership, a
Delaware limited partnership
By: Ashford Fort Tower I GP LLC, a Delaware
limited liability company, its general partner
By:
l�
Name: Robert G. Haiman
Title: President and Secretary
BY ITS SIGNATURE BELOW, LANDLORD
AGREES TO THE PROPOSAL SET FORTH IN
THIS LETTER.
The City of Fort Worth, a Texas home-
rule municipal corporation
By:
Name: 65�sc'�s Q �1���
Title: , 2PV bge Ct7� Al5g4e"e,-
Cc:
Cynthia Nelson (cbnelson(d)jw.com)
Lamar Dowling (IdowlinoCa1jw.com)
Leann Guzman (Leann.Guzman 0fortworthtexas gov) OR7`1,&,
MOW b
City Secretary TMEY'
Kam,r
OFFICIAL RECOVtt,.,
CITY SECRETARY
FT. WORTH, TX N
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