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Res 2025-126 concerning Project Cat Tree and approving a Chapter 380 Economic Development Incentive Agreement with Midway Development, LLC, providing incentives in the form of partial rebates of hotel occupancy and sales taxes
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Res 2025-126 concerning Project Cat Tree and approving a Chapter 380 Economic Development Incentive Agreement with Midway Development, LLC, providing incentives in the form of partial rebates of hotel occupancy and sales taxes
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8/14/2025 3:34:20 PM
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City Clerk
City Clerk - Document
Resolutions
City Clerk - Type
Approving
Number
2025-126
Date
8/5/2025
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b. Secured Collateral. Developer will encumber certain personal property, including after- <br /> acquired property, to include all furniture fixtures and equipment, accounts receivable, <br /> goodwill, intellectual property, patents and copyrights, as well as all proceeds, products, <br /> additions to, substitutions, and replacements of such property (collectively, the "Secured <br /> Collateral") as collateral for repayment of the City Note pursuant to the terms of and as <br /> described in a security agreement (the "Security Agreement") in substantially the form as <br /> shown in Exhibit "G," attached hereto and made a part hereof for all purposes. The Security <br /> Agreement shall be executed by Developer and the original delivered to the City concurrently <br /> with the City Note. Upon issuance of the certificate of occupancy for the Hotel on the Land, <br /> the City may record a form UCC-1 in Hays County, Texas evidencing the City Note and <br /> Security Agreement and any modifications, amendments,, extensions or continuations of such <br /> instruments, as applicable. Before the City makes any Chapter 380 Payments to Developer, <br /> Developer will provide evidence to the City that each lender having a lien or other security <br /> interest in the Collateral (as defined in the Security Agreement) consents to the terms of this <br /> Agreement,the Security Agreement and the recording of a UCC-1 by the City. The City and <br /> the lender(s) for the Project shall enter into a multi-party lender agreement to address, among <br /> other issues, i)the contingent nature of the City Note, ii)the ability of any other lenders to pay <br /> the City Note and insure that the collateral for the Security Agreement will not be foreclosed <br /> by the City without notice and opportunity to cure to the lenders, iii) that the same collateral <br /> which is pledged under the Security Agreement may be pledged to the lenders, subject to the <br /> rights of the City, and iv) that the lenders shall have first and prior liens on the collateral. If <br /> there is no Tax Status Change by the expiration of the Term, then the City Note and Security <br /> Agreement and any UCC-1 will be released by the City. <br /> 10 <br />
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