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CONTRACT NO.Y'� � l� ---=_
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 Term 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 Equine Marketing Group, Inc.
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 Equine Marketing Group, Inc. and shall expire on
December 31, 2013 (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 Equine Marketing Group, Inc.'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 § 5C (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.
The Equine Marketing Group, Inc. will use commercially reasonable efforts to host the Reichert
Celebration (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.
The City shall be responsible for distributing the Total Fund Amount to reimburse the City and
Company for actual expenses related to the Event, as permitted by the Act and consistent with the
Permissible Uses, as generally outlined in the Event Plan. The method and priority of funds to be
distributed shall be a determination made by the City in its sole discretion.
5. Economic Impact Studies.
The Equine Marketing Group, Inc. will, at their sole cost and expense, commission any Economic
Impact Studies for submission to the Comptroller pursuant to and in accordance with the Act.
6. Repeal 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 qualifies
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 affeets= financial
benefits of either party under the Agreement, the City and the Elui e��tidInc. shall
OFFW
. CITY SECRETARY
RECEIVED MAR282013 1 FT.WORTH,TX
negotiate in good faith an amendment to the Agreement so that the original intent of the parties is
preserved to the greatest degree possible.
SIGNED on the
ATTEST:
By:
Ana ►�-I 3
Ci N Secr?
troras
044
Approved as to form and legality
Ole
B
y:
Tyler nallach
Assistant City Attorney
EQUINE MARKETING GROUP, INC.
B
ootman, Executive Director
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o� � 7Susjp%Alanis
%'`�4ssitant City Manager
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CITY OF FORT WORTH
000 ° 4641 Approval Recommended:
11
irk N. " aughter
Director of Public Events