HomeMy WebLinkAboutOrdinance 15008Ordinance No.
AN ORDINANCE INCREASING ESTIMATED RECEIPTS-AND APPROPRIATIONS
IN THE HOTEL DEVELOPEMENT FUND IN THE AMOUNT OF $2,580,414 FROM
AVAILABLE FUNDS FROM ANON-INTEREST BEARING LOAN FROM THE
GENERAL FUND FOR THE PURPOSE OF FUNDING PRE-DEVELOPMENT OF A
CONVENTION CENTER HOTEL AND PARKING FACILITY; MAKING THIS
ORDINANCE CUMULITIVE 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 2001-02 and in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Hotel
Development Fund in the amount of $2,580,414 from available funds from anon-interest bearing loan from
the General Fund for the purpose of funding pre-development of a Convention Center Hotel and parking
facility.
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 or 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 full force and effect. '
SECTION 3.
That this ordinance shall be cumulative of .Ordinance No. 14745 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ordinances and appropriations are hereby expressly repealed.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.
APPROVED AS TO FORM AND LEGALITY:
Assistant ty Attorney
ADOPTED AND EFFECTIVE: / ~ 5 _ O~
City of Fort T~orth, Texas
Mayor and Council
Communication
DATE REFERENCE NUMBER LOG NAME PAGE
3/5/02 C-18988 25PORTMAN 1 of 3
SUBJECT AGREEMENT WITH PORTMAN DEVELOPMENT, LLC AND PHELPS PROGRAM
MANAGEMENT, LLC FOR EXCLUSIVE NEGOTIATING AND PRE-DEVELOPMENT OF
A CONVENTION CENTER HOTEL AND ADOPTION OF THE ATTACHED
APPROPRIATION ORDINANCE
RECOMMENDATION
It is recommended that the City Council
1 Authorize anon-interest bearing inter-fund loan from the General Fund to the Hotel Development
Fund in the amount of $2,580,414 for interim financing for pre-development of a Convention Center
hotel pending the issuance of bonds, notes, or other obligations to fund the acquisition and
construction costs of the Convention Center Hotel, and
2 Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the
Hotel Development Fund in the amount of $2,580,414 from available funds, and
3 Authorize the City Manager to execute an Exclusive Negotiating and Pre-Development Agreement
(Agreement) with Portman Development, LLC and Phelps Program Management, LLC for exclusive
negotiation and pre-development of a Convention Center Hotel in substantially the same form as
that attached hereto as Exhibit "A"
DISCUSSION
On June 13, 2001, a Request for Proposals (RFP) was issued to obtain a hotel development company
to develop a hotel property adjacent to the newly expanded Fort Worth Convention Center The
selection committee (comprised of City Council members, City staff, and representatives from UBS
Paine Webber, First Southwest, Austin Commercial, and the Fort Worth Convention & Visitors Bureau
Board of Directors), interviewed four development companies who responded to the RFP The
committee recommended that the City negotiate with Portman Development, LLC for the development
of the new hotel
On September 18, 2001, the City Council issued a resolution and selected Portman Development, LLC
and Phelps Program Management, LLC to assist with the development of a Convention Center Hotel
and parking facility
The City has retained UBS Paine Webber as underwriter for the obligations to be issued pursuant to the
City's financing plan with respect to the construction and development of the project.
The City has also retained HVS and C H Johnson to prepare market studies to determine the viability
of construction, operating a hotel, optimum quality level, and size of the hotel HVS has reported that
the newly expanded Fort Worth Convention Center and market dynamics will support the establishment
of a competitive, first class Convention Center Hotel
City of Fort Worth, Texas
Communication
3/5/02
Mayor and Council
NCE
C-18988
25PORTMAN
P
2of3
su~t~tc~ AGREEMENT WITH PORTMAN DEVELOPMENT, LLC AND PHELPS PROGRAM
MANAGEMENT, LLC FOR EXCLUSIVE NEGOTIATING AND PRE-DEVELOPMENT OF
A CONVENTION CENTER HOTEL AND ADOPTION OF THE ATTACHED
APPROPRIATION ORDINANCE
The proposed Agreement provides the framework for City staff to exclusively negotiate with Portman
Development, LLC and Phelps Program Management, LLC to create a development and management
agreement for the Convention Center Hotel and parking facility The term of the Agreement will be 180
days from the date of execution
This Agreement will provide the basis for pre-development activities including hotel conceptual design,
selection of hotel operator and parking operator, feasibility studies, cost estimates, and guaranteed
maximum price This will move the development to a position where it can be marketed to the
investment community
Additional services to be performed or obtained by the City (and the estimated costs) include
• Environmental testing $15,000
• Geotechnical $25,000
• Parking study $15,000
• Traffic evaluation $15,000
• Architectural topographic survey $25,000
• Contingency $20,000
Austin Commercial, the program management company on the Fort Worth Convention Center
expansion, will oversee the additional services on behalf of the City
Additional professional services and estimated costs include
• Architectural Services - HOK $50,000
• Consulting Services - C H Johnson $95,000
• Project Management -Austin Commercial $60,000
• Contingency $30,000
The total estimated budget for pre-development is $2,580,414
The City Council hereby finds, considers, and declares that the reimbursement of the payment by the
City of such expenditures, will be appropriate and consistent with the lawful objectives of the City, and
as such, chooses to declare its intention, in accordance with the provisions of Section 1 50-2 of the U S
Treasury Regulations, to reimburse itself for such payments at such time as bonds, notes or other
obligations are issued to fund the ultimate acquisition and construction costs of the Convention Center
Hotel
City of Fort Worth, Texas
Mayor and Council
Communication
DATE REFERENCE NUMBER LOG NAME PAGE
3/5/02 C-18988 25PORTMAN 3 of 3
SUBJECT AGREEMENT WITH PORTMAN DEVELOPMENT, LLC AND PHELPS PROGRAM
MANAGEMENT, LLC FOR EXCLUSIVE NEGOTIATING AND PRE-DEVELOPMENT OF
A CONVENTION CENTER HOTEL AND ADOPTION OF THE ATTACHED
APPROPRIATION ORDINANCE
All costs to be reimbursed as herein described, to the extent such expenditures constitute capital
expenditures, shall be funded by bonds, notes or other obligations to be issued within 18 months of the
later of (i) the date the expenditures are paid or (ii) the date on which the property, with respect to which
such expenditures were made, is placed in service, and the foregoing notwithstanding, any such bonds,
notes or other obligations will not be issued on a date that is more than three years after the date any
expenditure which is to be reimbursed is paid
FISCAL INFORMATION/CERTIFICATION
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 operating budget, as
appropriated, of the Hotel Development Fund Upon the issuance of bonds, notes or other obligations
to fund the acquisition and construction costs of the Convention Center Hotel, the inter-fund loan of
$2,580,414 will be returned to the General Fund
JP n
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
1) R194 220001 000194025001 $2,580,414.00
JoePaniagua G140 2) R194 485XXX 025194025001 $2,580,414.00
Originating Department Head: 2) R194 539120 025194025001 $2,580,414.00
APPROVED AS AMENDED
Kirk Slaughter 2501 (from) ORD #15008 3/5/02
1) GG01 136194 0000000 $2,580,414.00
Additional Information Contact: 3) R194 539120 025194025001 $2,580 414.00
Kirk Slaughter 2501