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<br />Resolution 2018-95R <br />Meeting Date: 06-19-2018 <br /> <br />Council postponed indefinitely <br /> <br />Consider action, by approval, or provide direction to Staff following the Executive Session <br />conducted in accordance with Section §551.071 of the Texas Government Code, Consultation <br />with Attorney, to seek advice of legal counsel regarding: Resolution 2018-95R, a subordination <br />agreement with Goldman Sachs Mortgage Company and JPMorgan Chase Bank that <br />subordinates the City’s Deed of Trust lien against the Embassy Suites Hotel Property securing a <br />note in the principal amount of $1,500,000 to the lien of such entities securing their loan to <br />JDHQ Hotels, LLC. (a subsidiary of Atrium Hospitality) for the purchase of the hotel from JQH- <br />San Marcos Development (a subsidiary of John Q. Hammons Hotels and Resorts); authorizing <br />the City Manager to execute the subordination agreement on behalf of the City; and declaring an <br />effective date. <br /> <br /> <br />A.An escrow agreement, providing for the deposit by JDHQ Hotels LLC of <br />the sum of $1,500,000 into an escrow account held by the City or by a <br />mutually agreed upon escrow agent, as a substitute form of security for that <br />company's performance of its obligations under the San Marcos Conference <br />Center Lease Agreement. <br /> <br /> <br />B.The San Marcos Conference Center Side Agreement with JDHQ Hotels <br />LLC providing for increased utilization by the City of the San Marcos <br />Conference Center for City events, requiring podium signage to reflect City's <br />ownership of the conference center and requiring JDHQ to complete certain <br />improvements to the conference center on or before December 31, 2021. <br /> <br /> <br />C.A release of the second lien currently held by the City of San Marcos on the <br />Embassy Suites hotel property to secure repayment of a real estate lien note in <br />the sum of $1,500,000 payable to the City only in the event of a default by JDHQ <br />Hotels LLC under the loan documents for the Embassy Suites Hotel and the San <br />Marcos Conference Center. <br /> <br />A motion was made by Deputy Mayor Pro Tem Gregson, seconded by Council Member <br />Hughson, to postpone, indefinitely, Resolution 2018-95R regarding the proposed <br />subordination agreement and Resolution 2019-96R relating to the proposed loan <br />assignment assumption agreement with JDHQ Hotels LLC because the escrow agreement <br />replaces the loan and releases the second lien. <br /> <br />For: 7 - <br />Mayor Pro Tem Prewitt, Council Member Gonzales, Deputy Mayor Pro Tem Gregson, <br /> Council Member Derrick, Council Member Hughson, Mayor Thomaides and Council <br /> Member Mihalkanin <br /> <br /> <br />Against: <br />0 <br />