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HomeMy WebLinkAboutOrdinance 16355-03-2005Ordinance Na. ~s/ ~~ -~~~~~~ AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND APPROPRIATfONS IN THE SPECIALLY FUNDED CAPITAL PROJECT5 FUND IN THE AMOUNT OF $6,300,000 FROM AVAILABLE FUNDS, FOR THE PURPOSE OF FUNDING AN ECONOMIC DEVELOPMENT PROGRAM AGREEMENT WITH OMNI )=ORT WORTH PARTNERSHIP, L.P.; MAKING TH15 ORDINANCE CUMULATIVE OF PRfOR ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE GIN OF FORT WORTH, TEXAS: SECTION 1. That in addition to those amounts allocated to the various Gity departments far Fiscal Year 2004- 2005 in the Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Specially Funded Capita! Projects Fund in the amount of $6,300,000 for the purpose of funding an Economic Development Program Agreement with Omni Fort Worth Partnership, L. P. SECTION 2. That should any portion, section ar part of a section of this ordinance be declared invalid, inoperative or void for any reason by a court of competent jui-isdictian, such decision, opinion or judgment shaft in no way impair the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall be and remain in full force and efifect. SECTION 3. That this ordinance shall be cumulative of Ordinance Na. 16069 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in which instance said conflicting provisions of said prior ordinances and appropriations are hereby expressly repealed.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 shall take effect upon adoption. APP VED AS TO FORM AND LEGALITY: Assistant Gi#y Attorne ADOPTED AND EFFECTIVE: `~ ~ ~~ ~ ~~~ t'age f of 3 Gib ®f ~®r~' ~fo~h, ~~xa~ Mayor and Council Communication COUNCIL ACTION: Approved on 3/29/2005 -Ordinance Nos. 16354-03-2005 &'16355-03-2005 CONTINUE® FROM A PREVIOUS Vid"EEIC DATE. Thursday, March 24, 2005 LOG NAME. '170MN1 EDPA REFERENCE NO.. C-20621 SUBJECT. Authorize Execution of Economic Development Program Agreement with Omni Fart worth Partnership, L.P.; Adapt Supplemental Appropriation Ordinance and Authorize Transfer of Funds RECOMMEN©ATION: It is recommended that the City Council: 1. Make the findings speciafically set forth in the atttached Economic ©evelapment Program Agreement; 2. Authorize the the City Manager to execute the attached Economic Development Preogram Agreement with Omni Fort Worth Partnership, L.P.; 3. Adopt the attached supplements! 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 receiptes and appropriations in the Specially Funded Capital Projects Fund by $6,300,000 from avaliable funds. ®ISCUS510N: In response to a Request for Proposals issued by the City, Omni 1=ort Worth Partnership, L.P. (Omni) proposes to construct afull-service hotel on two tracts of land owned 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, approximmtely 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 hotel and parking garage. Within eight months following execution of the attached agreement, TRT Holdings, Inc., Omni's parent company, will deliver the City a guaranty under which TRT Holdings, Inc., guarantees completion of the hotel and parking garage. Omni wil! also have the right to lease retail space in 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. OMNI COMIVIITIVII=NTS As part of this project, Omni has made the following commitments: http://www.cfwnet.org/counciI~packet/Reportslmc_print.asp 2/24/2006 Page 2 of 3 * Construction Spending. Omni will spend the lesser of $11,872,D00 ar 20% of hard construction costs for the hotellgarage with Fort Worth companies. Omni will also spend at least $5,93S,ODD or 1D% of hard construction costs with t=ort Worth M/WBE companies. Expenditures with Fort Worth MIWBE 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 towards its obligation to pay certain economic development grants (as outlined below} equal to the number of dollars by which the commitments were oat met. * Employment. Omni annually will provide at least 25D full-time equivalent jabs (FTEs) in the hotel and hotel garage, of which at least 125 must be residents of the City of Fort 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 City of t=ort Worth $4,500 for each FTE below the 250 overall commitment; $4,5DD for each FTE below the 125 City of Fvrt Worth commitment; and $9,DD0 for each 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 Fart Worth companies and at least $SO,D00 per year with Fart Worth M/WBE companies in discretionary supplies and services for the hotel and the hotel garage. Spending with Fort Worth MIWBE companines shall also counf toward the spending commitment for Fort Worth Companies. ff Omni fails to meet any of these commitments, the City may deduct the number of dollars by which Omni failed to meet the commitments from future payments of certain economic development grants (as outlined below). " Ranm Black Agreement. Omni will enter into an agreement with the City to reserve blocks of rooms for users of the 1=ort Werth Convention Center. * Operating Standards. Omni will operate the hotel in accordance with those operating standards attributable to a 3-starl4 diamond hotel. If Omni fails to continue operating the hotel at such standards after a 1~year notice and cure period, the City may suspend payment of certain economic development grants (as outlined below) until Omni has resumed operating the ho#el at such standards. CITY INCENTIVES 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 lintel site, the City will pay Omni various economic development grants authorized by Chapter 380 of the Texas Local Government Cade and in accordance with the City's Chapter 380 Economic Development Program previously approved by the City Council, as follows: ~` Completion Grants. Once construction is initiated, the City will pay Omni monthly grants equal to 5D% of the hard construction costs expended by Omni in the previous month. These monthly grants will continue until the City has paid $6.3 million. * Quarterly Incentive Grants. Once the hotel opens and for 10 years thereafter, the City will pay Omni quarterly grants equal to the City 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 the Cap or limitation, the state hotel occupancy tax and sales tax rebated to the City because, as provided by state law, the hotel is located within 1,ODD of a convention center and is located an property awned 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 fa 25% of the difference. ]n 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 an the hotel property, which will continue to be owned by the City, less $1D,DOD. (The hotel and the hotel hrip://w~ww.cfi~net.oxg/cauncil~acl~et/Reports/me~rint.asp 2/24/2006 Page 3 of 3 garage themselves will be owned by Omni) * Saie-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 none-time grant equal to the purchase price, less $1 million. In addition, the City will waive development-related fees for the project, as specified in the Agreement, and will use best efforts to nominate the hotel project for designation as a state enterprise project. The attached Agreement is subject to alll applicable laws, ordinances, rules and regulations. It is anticipated that construction on the hotel will begin December 2005 and that it will be open for business by not later that April 2008. Part Worth Omni Hotel will be located in COUNCIL DISTRICT 9. FISCAL IIVFDRMATIDNICERTIFICATIDN; The Finance Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinances, funds will be available in the current capital budget, as appropriated, of the Specially Funded Capital Projects Pund. TD FundlAccountlCenters 3) GG04 538070 0246000 $6,300,OOO.D0 $6,300,OOO.D0 C291 472004 251050022480 C291 5391020 2510500224780 $6,300,000.00 FROM FundlAccauntlCenters $6.300, 000.00 GG04 538070 0246000 Submitted f®r City Manager's Office bv; ©riginatin~ ©epartmerat Head: Ad€litionai Information Contact: Joe Paniagua (6191} Dale Fisseler (6140) Tom Higgins (6192) Peter Vaky (7601) http://www.cfwnet.org/council packetJReportslmc_print.asp 2/24/2006