Loading...
HomeMy WebLinkAboutOrdinance 16354-03-2005Ordinance No. ~~3~'~-_- ~~"c~C~~ AN ORDINANCE INCREASING APPRDPRIATIDNS iN THE CULTURE AND TOURISM FUND IN THE AMOUNT OF $6,340,400 AND DECREASING THE UNRESERVED FUND BALANCE BY THE SAME AMOUNT, FOR THE PURPOSE OF TRANSFERRING SAID FUNDS TO THIS SPECIALLY FUNDED CAPITAL PROJECTS FUND; MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various City departments for Fiscal Year 2044- 2045 in the Budget of the City Manager, there shall also be increased appropriations in the Culture and Tourism Fund in the amount of $6,340,440 and decreasing the unreserved fund balance by the same amount, for the purpose of #ransferring said funds to the Specially Fended Capital Projects Fund. SECTION 2. That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jurisdiction, such decision, opinion ar judgment shall in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall. be and remain in fup force and effect. SECTION 3. That this ordinance shall be cumuiative of Ordinance No. '16461 and all other ordinances and appropriations amending the same except in those instances where the provisions of this ordinance are in direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed. SECTION 4. This ordinance shad take effect upon adoption. APPROVED AS TO FORM AND LEGALITY: Assistant City Attnrn ADOPTED AND EFFECTIVE: ~~~~~ ~ ~ ..3 ~i ®f F®rt VV®r~tf~, Teac~~ r r~ ur~c~~ mu~i~ti~n COUNCIL ACTION: Approved on 3/29/2005 -Ordinance Nos. 16354-03-2005 & '[635503-2005 CONTINUED FROM A PREVIOUS WEEK DATE: Thursday, March 24, 2ao~ LOG NAME: ~ 70MN1 EDPA REFERENCE No.: c-20621 suB~ECT: Authorize Execution of Economic Develapment Program Agreement with Omni Fort Worth Partnership, L.P.; Adopt Supplemental Appropriation Ordinance and Authorize Transfer of Funds RECOMMENDATION: It is recommended that the City Council: Make the findings specifically set forth in the attached Economic Development Program Agreement; 2. Authorize the City Manager to execute the attached Economic Development Program Agreement with Omni Fart Worth Partnership, L.P.; 3. Adapt the attached supplemental appropriation ordinance increasing appropriations in the Culture and Tourism Fund by $6,300,000 and decreasing the unreserved fund balance by the same amount; 4. Authorize the transfer of $6,300,000 from the Culture and Tourism Fund to the Specially Funded Capital Projects Fund; and 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Specially Funded Capital Projects Fund by $6,300,000 from available funds. DISCUSSION: PROJECT OVERVIEW In response to a Request for Proposals issued by the City, Omni Fort Worth Partnership, L.P. (Omni) proposes to construct a full-service hotel on two tracts ofi land awned by the City and located directly to the west of the Fort Worth Convention Center. The hotel will have approximately 600 rooms, two full-service restaurants, a lobby bar, approximately 48,000 square feet of dedicated meeting space and other supporting facilities commensurate with afull-service convention center hotel. The hotel will be Texas-themed, and the City will have the right to approve the preliminary and final plans and specifications. Omni will also construct a parking garage, all or a portion of which will be located below ground, on the same tracts of land. Omni may construct residential condominiums on top of the hotel. Omni has committed to expend at least $59,360,000 in hard construction costs for the Note! and parking garage. Within eight months following execution of the attached Agreement, TRT Holdings, Inc., Omni's ultimate parent company, viii deliver the City a guaranty under which TRT Holdings, Inc. guarantees completion of the hotel and parking garage. Omni will also have the right to lease retail space iri a newly constructed parking garage owned by the City and located directly to the north of the hotel property and, with certain exceptions, will have an exclusive right to provide catering services at the Convention Center. Lo~natxie: 174MNI EDt'A Paaa 1 of ~ oM~l coMMl-rnn~~Ts As park of this project, Omni has made the following commitments: • Construction Spending. Omni will spend the lesser of $11,872,000 or 2fl% of hard construction casts for the hotellgarage with Fort Worth companies. Omni will also spend at least $5,936,000 or 10% of hard construction costs with Fort Worth M/WBE companies. Expenditures with Fort Worth M/WBE companies also count toward the commitment for spending with Fort Worth companies. If Omni fails to meet any of these commitments, the City will receive a credit toward its obligation to pay certain economic development grants {as outlined below) equal to the number of dollars by which the commitments were not met. • Employment. Omni annually will provide at least 250 full-time equivalent jobs {FTEs) in the hotel and hotel garage, of which at least 125 must be residents of the City of Fart Worth and 62 must be residents of the Central City. Jobs provided to residents of the Central City will also count as jobs provided to residents of the City of Fort Worth. If Omni fails to meet any of these commitments, Omni will pay the Gity of Fart Worth $4,500 for each FTE below the 250 overall commitment; $4,500 for each FTE below the 125 City of Fort Worth commitment; and $9,000 for each FTE below the Central City commitment. All such payments will be used to fund ajob-training program at the hotel. • Supply and Service Spending. Omni will spend at least $100,000 per year with Fort Worth companies and at least $50,000 per year with Fort Worth MIWBE companies in discretionary supplies and services for the hotel and the hotel garage. Spending with Fort Worth MNVBE companies shall also count toward the spending commitment for Fnrt Worth companies. If Omni fails to meet any of these commitments, the City may deducf the number of dollars by which Omni failed to meet the commitments from future payments of certain economic development grants (as outlined below). • F2aom Block Agreement. Omni will enter into an agreement with the City to reserve blocks of roams for users of the Fork Worth Convention Center. • Operating Standards. Omni will operate fihe hotel in accordance with those operating standards attributable to a 3-starl4-diamond hotel. If Omni fails to continue operating fihe hotel at such standards after a 1-year notice and cure period, the City may suspend payment of certain ecnnnrnic development grants {as outlined below} until Omni has resumed operating the hotel at such standards. CITY INCf:NT111fES In return for the economic benefits, increased employment and commercial stimulation that the City of Fort Worth is anticipated to receive from the hotel in the form of increased Convention Center bookings, additional tourism and private development around the hotel site, the City will pay Omni various economic development grants authorized by Chapter 380 of the Texas Local Government Code and in accordance with the City`s Chapter 380 Economic ©evelopment Program previously approved by the City Council, as follows: • Completion Grants. Once construction is initiated, the City will pay Omni monthly grants equal to 50% of the hard construction casts expended by Omni in the previous month. These monthly grants will continue until the City has paid Omni $6.3 million. • Quarterly Incentive Grants. Once the hotel opens and for 10 years thereafter, the City will pay Omni quarterly grants equal ko the Gity hotel occupancy tax and 1 % City sales tax received in the previous quarter {capped at $37 million over the course of the program}, plus, without any cap ar limitation, the state hate! occupancy tax and sales tax rebated to the City because, as provided by state law, the hotel is located Lo~narne: l7QNINI EDPA PaE3P. 7 nf'~ within 1,000 feet of a convention center and is located on property owned by the City. In the event that the City tax rates are lowered, the City will pay Omni the difference between what Omni received and what Omni would have received without the change in rates. In the event that the City does not receive the anticipated state taxes because of a change in rates or the law, the City will pay Omni an amount equal to 25% ofi the difference. In both instances, the unpaid difference will carry .interest at 14% per annum until fully paid. • Lease-Based Grants. The City will pay Omni an annual grant equal to the amount of rent paid to the City on the hotel property, which will continue to be owned by the City, less $10,000. {The hotel and the hotel garage themselves will be owned by Omni}. • Sale-Based Grant. If Omni exercises its right to purchase the property on which the hotel and parking garage are constructed after the tenth year of the hotel's opening, the City will pay Omni a one-time grant equal to the purchase price, less $1 million. In addition, fhe City will waive development-related fees far the project, as specified in the Agreement, and will use best efforts to nominate the hotel project fiar designation as a state enterprise project. The attached Agreement is subject to all applicable laws, ordinances, rules and regulations. It is anticipated that construction on fhe hotel will begin in December 2005 and that it will be open for business by not later than April 2008. Fart Worth Omni Hotel is located in Council District 9. l=1SCAL INIFORMATIONICERTIFICATION: The Finance Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will be available in the current capital budget, as appropriated, of the Specially Funded Capital Projects Fund. TO FundlAccountlCenters ~_~~oa 53aD~o oz4sooD ~s 3_,.._OO,OOO.OD 4 5~ C291 47'20D4 251 D50D22480 ~6.3DD.OOO.DO 5) 0291 5391020 25105D0224780 $6.3DD.OOD.DO FROM FondlAccountlCenters 4} GG04 538070 024600D $5.300,000.00 S`fbmitted for City Manager's Office ~~ doe Paniagua (6191} Dale Fisseler (6140) Ori inatin De a~rtrrtent Head: Tom Higgins (5192) Additional Inforrnation Contact: Peter Vaky (7601) Lo~name: 170MNI EDPA Paa~ ~ of ~