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HomeMy WebLinkAboutContract 29329 AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 28493 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT BETWEEN CITY OF FORT WORTH AND CITY NOq�3 �� HARRELL GALWAY ASSOCIATES, L.L. ONRACT This AMENDMENT NO. I TO CITY SECRETARY CONTRACT NO. 28493 ("Amendment") is entered into by and between the CITY OF FORT WORTH ("City"), a home rule municipal corporation organized under the laws of the State of Texas, acting by and through Reid Rector, its duly authorized Assistant City Manager, and HARRELL GALWAY ASSOCIATES, L.L.C. ("Owner"), a Delaware limited liability company acting by and through Paul L. Barham, the duly authorized chief executive officer of Harrell Hospitality Group, Inc., manager of Owner. RECITALS The City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Amendment: A. On or about March 31, 2003 the City and Owner entered into that Economic Development Program Agreement on file as a public document in the City Secretary's Office as City Secretary Contract No. 28493 (the "Agreement"). The Agreement provides for the City to make fifteen (15) annual Program Grants, as defined in the Agreement and authorized by Chapter 380 of the Texas Local Government Code, to Owner in return for Owner's redevelopment and upgrade of the hotel located at 1701 Commerce St. in the City, which is currently operating as the Ramada Plaza. In order to qualify for these Program Grants, Owner must meet various development milestones that are set forth in the Agreement, including, but not limited to, (i) Owner's execution of a Room Block Agreement by September 1, 2003; (ii) Owner's receipt of a building permit to initiate construction of the Project, as defined in the Agreement, by September 30, 2003; and (iii) Owner's completion of the Project, as specified in Section 4.1 of the Agreement, by December 31, 2004. B. Due to unforeseen delays in initiation of the Project, Owner wishes to amend the Agreement to extend the deadlines specified in Recital A. The City is willing to consent to such extensions due to the valuable public purpose that will be met if the Project is completed, as more specifically described in the Recitals of the Agreement. In addition, the parties wish to amend the Agreement to add a definition that was omitted in the original Agreement. Page 1,Amendment No. 1 to Economic Development Program Agreement , between City of Fort Worth and Harrell Galway Associates,L.L.C. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. The City Council hereby fmds, and the City and Owner hereby agree, that the recitals set forth above are true and correct and form the basis upon which the City has entered into this Agreement. 2. Section 2 of the Agreement (Definitions) is hereby amended to add the following defmition: Owner means (i) Harrell Galway Associates, L.L.C. or (ii) any successor and assign thereto provided that the conditions of Section 10 of the Agreement have been met. 3. The "Project Completion Date", as defined in Section 4.1 of the Agreement (Redevelopment of Hotel), is hereby changed from December 31, 2004 to June 30, 2005. 4. Section 4.7 of the Agreement (Room Block Agreement) is hereby deleted in its entirety and replaced with the following: 4.7. Room Block Agreement. A Room Block Agreement must be in effect and in full force by not later than December 31, 2003 and all times thereafter for the remainder of the Term of this Agreement. 5. Section 6.2 of the Agreement (Events of Default), subsection (i) is hereby amended to state the following: (i) a building permit to initiate construction under the Project has not been issued by the City on or before March 31, 2004; ..... The remainder of Section 6.2 will remain in full force an "0IFF ;11� Page 2,Amendment No. 1 to U, ?'�� ,J f Economic Development Program Agreement v M Jl i �L�d�° between City of Fort Worth and Harrell Galway Associates,L.L.C. 6. Section 6.3 of the Agreement (Remedies), subsection (i) is hereby amended to state the following: (i) a building permit to initiate construction under the Project has not been issued by the City on or before March 31, 2004; ..... The remainder of Section 6.3 will remain in full force and effect. 7. All capitalized terms used but not defined in this Amendment shall have the meanings assigned to them in the Agreement. 8. All provisions and conditions of the Agreement that are not expressly amended herein shall remain in full force and effect. EXECUTED as of the last date indicated below: CITY OF FORT WORTH: HARRELL GALWAY ASSOCIATES, L.L.C.: By: Harrell Hospitality Group, Inc., y� r Owner's sole general partner By: By: Reid Rector Pau t. orharn Assistant City Manager Chief Executive Officer Date: /ie)dGl?;,6!T �/, ,,76e-3 Date: APPROVED AS TO FORM AND LEGALITY: ATTESTED BY By: Peter Vaky Assistant City Attorney M&C: G-J9S.57 11-Ir-03 Page 3,Amendment No. 1 to `:J4 L C�dlar W':I:U Economic Development Program Agreement between City of Fort Worth and Harrell Galway Associates,L.L.C. �� City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 11/18/2003 DATE: Tuesday, November 18, 2003 LOG NAME: 17HARRELL REFERENCE NO.: **C-19857 SUBJECT: Authorize Execution of Amendment to Economic Development Program Agreement with Harrell Galway Associates, L.L.C. Regarding Redevelopment of Ramada Plaza Hotel RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an amendment to City Secretary Contract No. 28493, an Economic Development Program Agreement with Harrell Galway Associates, L.L.C. regarding the redevelopment of the Ramada Plaza Hotel. DISCUSSION: On March 25, 2003, the City Council authorized the City Manager to enter into an Economic Development Program Agreement (Agreement) with Harrell Galway Associates, L.L.C. (Harrell). The Agreement was executed on March 31, 2003, and is on file as City Secretary Contract No. 28493. Under the Agreement, Harrell has agreed to spend at least $30 million to redevelop the Ramada Plaza Hotel (the Hotel), located at 1701 Commerce Street, into a full-service, competitive name-brand hotel with at least 430 guest rooms and a Mobil Travel Guide rating of at least 3 stars. In addition, the Agreement contains various goals for Harrell to meet with respect to (i) Hotel construction spending with Fort Worth companies and Fort Worth M/WBE companies, and (ii) Hotel employment for Fort Worth residents and Central City residents. The Agreement also requires Harrell to enter into a Room Block Agreement with the City under which the Hotel operator will reserve various blocks of rooms for use by persons associated with events at the nearby Fort Worth Convention Center. In return for Harrell's meeting these obligations, Harrell is entitled to receive annual economic development program grants from the City that are calculated based on a calculation that is partially determined by the amount of increased property and hotel occupancy taxes that the City receives from the redeveloped Hotel. The Agreement requires that the Room Block Agreement be in place by September 1, 2003, and that a permit to initiate construction on the Hotel redevelopment be obtained by Sepember 30, 2003. Due to unforeseen delays in the initiation of the Hotel redevelopment project, Harrell has requested that the City amend the Agreement to extend these deadlines to December 31, 2003, and March 31, 2004, respectively. City staff has no objection to this request. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. T.nunamP.- 1714ARRF.T.T. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Reid Rector (6266) Originating nating Department Head: Tom Higgins (6192) Additional information Contact: Peter Vaky (7601) Logname- 17HARRF.T.T.