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HomeMy WebLinkAboutContract 45129 (2)CITY SECRETARY CONTRACTNO.I �Ir1�.. . TERM SHEET REGARDING USE OF EVENTS FUNDS FROM THE STATE OF TEXAS UNDER TEX. REV. CIV. STAT. ART. 5190.14 § 5C 1. Parties to and Tern of the Agreement. This term sheet shall serve as the basis for development of a Trust Fund Event Support Contract ("Agreement") between the City of Fort Worth ("City") and the National Reining Horse Association ("NRHA"). The Agreement shall be effective as of the data that it has been executed by a duly authorized representative of both the City and the NRFIA and shall expire on December 31, 2012 (the "Term"). The Agreement, once executed by both parties and approved by the City, shall be a legally binding obligation of the parties. This term sheet, however, does not legally obligate either party to execute the Agreement. 2. Application and Funding of Event Trust Fund.. In return for NRHA's hosting of an Event, as defined in Section 3 hereof, the City will apply to the Comptroller of the State of Texas (the "Comptroller") for the creation of an Events Trust Fund (an "ETF") for the Event under the provision of Texas Revised Civil Statutes, Article 5190.14 § SC (the "Act"). In accordance with the Agreement, the City will contribute an amount equivalent to the incremental tax increase that the Comptroller determines the City will receive on the account of the Event for partial funding of the ETF, which funding is intended to trigger the State of Texas contribution to the ETF(s) under the terms of the Act. 3. Scope of Agreement. NRHA will use commercially reasonable efforts to host the NRHA Cowtown Classic (the "Event"), at the Will Rogers Memorial Center located at 3401 W. Lancaster Avenue, Fort Worth, Texas 76017, during the Term of the Agreement. 4. Distribution of Funds. Funds from the ETF will be distributed in the following manner: (1) to the City for reimbursement of the City's expenses related to the Event, as permitted by the Act; (ii) to the City for reimbursement of any contribution by the City to the ETF; and (iii) to NRHA for reimbursement of NRHA's expenses related to the Event. 5. Economic Impact Studies. The NRI-IA will, at NRHA's sole cost and expense, commission any Economic Impact Studies for submission to the Comptroller pursuant to and in accordance with the Act. 6. Reveal or Modification of the Act. The provisions of this term sheet are based on the terms and conditions of the Act currently in effect. Should the Act be repealed or modified in such a manner that the Event no longer qualities for distribution of the ETF proceeds in the manner contemplated herein, this term sheet shall become voidable by either party upon receipt of written notice by the other party. If the Act is modified during the Term of the Agreement and such modification materially affects the financial benefits of either party under the Agreement, the City and NRFIA shall negotiate in good faith an t RIECEIVED ICON 1 82ui3 OF WAL lilt SHCIPM T,- V amendment to the Agreement so that the original intent of the parties is preserved to the greatest degree possible. SIGNED on theac day of ATTEST: Approved as to form and legality: By: Tyler F. W. h Assistant ity Attorney NATIONAL REINING HORSE ASSOCIATION Dan Wall, ExecutW `D!l eerur I88628v6 11 2012. • CITY OF FORT WORTH Janis t City Manager Approval Recom By: Kirk N. Slaug ter Director of Public Events fir / }jl�-gyp. �J re NO AMC RIMMED 11 - 1 - _II I, .1 '. - CorNf � HAL RECORD TV SECRETARY FT. WORTH, TX