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Home My WebLink AboutContract 33870-A4 CITY SECRETARY CONTRACT NO. lD AMENDMENT NO. 4 TO ECONOMIC DEVELOPMENT PROGRAM AGREEMENT (CITY SECRETARY CONTRACT NO. 33870) This AMENDMENT NO. 4 TO ECONOMIC DEVELOPMENT PROGRAM AGREEMENT ("Amendment") is made and 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, and PRESIDIO HOTEL FORT WORTH, L.P. ("Developer"), a Texas limited partnership acting by and through Presidio Hotel GenPar, LLC, a Texas limited liability company and Developer's general partner. The following introductory provisions are true and correct and for the basis of this Amendment: A. As of August 14, 2006 the City and Developer entered into that certain Economic Development Program Agreement on file in the City Secretary's Office as City Secretary Contract No. 33870, as previously amended by City Secretary Contract Nos. 34442 and 35075 and 36660 (collectively, the "Agreement"). Under the Agreement, Developer agreed, among other things, to construct certain improvements to the Hotel owned by Developer and located at 1701 Commerce Street in the City, which most recently operated as the Plaza Hotel. In return, the City agreed to pay Developer certain Program Grants as authorized by Chapter 380 of the Texas Local Government Code and outlined in the Agreement. B. The Agreement requires that a minimum number of Full-time Equivalent Jobs be provided and filled on the Hotel Property (the Overall Employment Commitment) and that a minimum number of those Full-time Equivalent Jobs be held by Fort Worth Residents and Central City Residents (the Fort Worth Employment Commitment and the Central City Employment Commitment, respectively). Due to a change in the scope of the Project, Developer has requested that the Agreement be amended to reduce the minimum number of Full-time Equivalent Jobs required for the Overall Employment Commitment and the Fort Worth Employment Commitment. Developer has agreed that the change in scope of the Project does not require a revision to the Central City Employment Commitment, as specifically outlined in City Secretary Contract No. 36660, Amendment No. 3 to the Agreement. C. On or about July 28, 2009, Developer and the law firm of Linebarger Goggan Blair & Sampson LLP, outside legal counsel for the City, entered into an agreement pursuant to which Developer agreed to pay the City certain delinquent hotel occupancy taxes in installments, as more specifically set forth in such agreement. D. Because of the public benefits that the City will receive from the Project, as outlined in the Recitals of City Secretary Contract No. 33870, the City is willing to OFFICIAL RECORD CI'MSECRETARY n_ FMMIRg o.4 to C C No.33870,as previously amended TX en Program Agreement with Presidio Hotel Fort Worth, L.P. amend the Agreement in order to address Developer's requests herein so long as Developer is compliance with the Installment Agreement referenced in Recital C above. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City and Developer hereby agree as follows: 1. Section 2 of the Agreement is hereby amended to add the following term and definition: Installment Agreement means that certain Installment Agreement for Payment of Delinquent Hotel Occupancy Taxes to the City of Fort Worth dated July 28, 2009, attached hereto as Exhibit "E" and hereby made a part of this Agreement for all purposes. 2. Section 4.3 of the Agreement (Employment Commitments) is hereby amended so that Section 4.3.1 (Overall Employment) and Section 4.3.2 (Fort Worth Residents) read as follows: 4.3.1. Overall Employment. Beginning in the first full calendar year following the year in which the Completion Date occurs and in each calendar year thereafter during the Term of this Agreement, at least one hundred (100) Full-time Equivalent Jobs will be provided and filled on the Hotel Property (the "Overall Employment Commitment"). 4.3.2. Fort Worth Residents. Beginning in the first full calendar year following the year in which the Completion Date occurs and in each calendar year thereafter during the Term of this Agreement, (i) at least sixty five percent (65%) of all Full-time Equivalent Jobs provided on the Hotel Property, regardless of the total number of Full-time Equivalent Jobs so provided, or (ii) at least sixty five (65) Full- time Equivalent Jobs, whichever is greater, will be filled with Fort Worth Residents (the "Fort Worth Employment Commitment"). Full-time Equivalent Jobs counted toward the Central City Employment Commitment, as provided in Section 4.3.3, shall also be counted toward the Fort Worth Employment Commitment. Page 2 Amendment No.4 to CSC No.33870,as previously amended Economic Development Program Agreement with Presidio Hotel Fort Worth,L.P. 3. Section 8.5 of the Agreement (Failure to Pay City Taxes) is hereby amended to add an additional paragraph, as follows: Notwithstanding anything to the contrary herein, Developer shall be in default under this Agreement contemporaneously upon any breach of the Installment Agreement, in which case the City shall have the right to terminate this Agreement without further opportunity for cure effective immediately upon provision to Developer of written notice of such intent. 4. All terms in this Amendment that are capitalized but not defined shall have the meanings assigned to them in the Agreement. 5. All terms and conditions of the Agreement that are not expressly amended pursuant to this Amendment shall remain in full force and effect. EXECUTED as of the later date indicated below: CITY OF FORT WORTH: PRESIDIO HOTEL FORT WORTH, L.P., a Tfl ' rtnership: By: PrePar, LLC, a Texility company: By:_ B y: Tom Higgins Assistant City Manager Date: 913//-0 D 0 APPROVED AS TO FORM AND LEGALITY: By: Attested by: Peter Vaky Assistant City Attorney LL 6,1 May HendrixitSecreta�, �M&C: C-24000 12-15-09 _ pfon ap 000000 r0pOoo Uo �d. OFFICIAL RECORD G �� v CITY SECRETARY o a �+ FT. rtd 5 r(1 t 4 t CSC No.33870,as previously amended 000000000a°°o Ay en09 t Program Agreement with Presidio Hotel Fort Worth, L.P. hiXp�yOb ��13.11'Uab4 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/15/2009 DATE: Tuesday, December 15, 2009 REFERENCE NO.: C-24000 LOG NAME: 17SHERATONAMEND4 SUBJECT: Authorize the Execution of an Amendment to City Secretary Contract No. 33870, an Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P., Related to the Redevelopment of the Former Plaza Hotel to Adjust Employment Commitments for the Hotel RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an amendment to the Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P., City Secretary Contract No. 33870, as previously amended, in order to adjust employment commitments for the hotel. DISCUSSION: On February 28, 2006, the City Council authorized execution of an Economic Development Program Agreement with Presidio Hotel Fort Worth, L.P., (Presidio)for the redevelopment of the Plaza Hotel located at 1701 Commerce Street, which has since been re—branded as a Sheraton. Presidio is requesting the amendment and believes that this amendment will reflect the economic reality of the redevelopment project, given the profound changes in the economic climate and the effect of these changes in the hospitality industry. The amendment adjusts Presidio's commitment of full time employees (FTEs) from 175 to 100. Presidio's commitments for employment of Fort Worth residents will be adjusted from the greater of 50 percent of FTEs or 88 FTEs to the greater of 65 percent of FTEs or 65 FTEs. Otherwise,the structure and terms of the Agreement will remain the same as previously approved by the City Council. FISCAL INFORMATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. FUND CENTERS: TO Fund/Account/Centers FROM Fund/Account/Centers CERTIFICATIONS: Submitted for City Manager's Office by: Thomas Higgins (6140) Originating Department Head: Jay Chapa (6192) Additional Information Contact: Guy Brown (7313) ATTACHMENTS No attachments found.