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96. 0 ~ ;::; > '<0 c: ~:!J 0- -..... m 00-< , ~o qr- ::Jr- ..... 5m s:m f',,) W l:I):D ~ d^ ~ U1 0 s:: (1.1 ~ (1.1 I.t") 0 Bi 0 ~e 0 a:C'o,J w~ w'* ~ -Jc: ~ t-4 U>CI) -' 1-- -0 ::> 0>. ~ -, - C3 ORDINANCE NO. 2005- 51 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS, AMENDING THE 2004-2005 CITY BUDGET TO PROVIDE FUNDING FOR A CHAPTER 380 ECONOMIC DEVELOPMENT GRANT AND LOAN AGREEMENT WITH JOHN Q. HAMMONS, TRUSTEE, RELATED TO THE HOTEL AND CONFERENCE CENTER PROJECT; AND DECLARING AN EMERGENCY. RECITALS: 1. John Q. Hammons, as Trustee of the John Q. Hammons Revocable Trust dated December 28, 1989, as amended ("Hammons"), and the City are pursuing a joint project (the "Project") whereby (i) Hammons would construct and operate a full service upscale hotel (the "Hotel") of at least ten (10) stories in height with a minimum of two hundred fifty (250) guest rooms and (ii) the City would construct, and lease to Hammons, a first class conference center facility and related improvements (the "Conference Center") adjacent to the Hotel, which Conference Center would contain one large ballroom sufficient to lawfully accommodate one thousand (1,000) people for a banquet style event. 2. Hammons and City have identified a fifteen acre tract of land located in San Marcos, Hays County, Texas (the "Project Site") as the preferred site for the Project. 3. While Hammons and City have not reached a definitive agreement concerning the parties respective obligations relating to the Project, and neither currently has any obligation one unto the other with respect thereto, Hammons and City believe that, due to market conditions and competitive forces, it is imperative that the Project Site be acquired immediately. 4. Gilmore-Austex Properties, Ltd. has offered to (i) sell a ten (10) acre portion of the Project Site (the "Hotel Site") for $2,000,000.00 and (ii) donate the remaining approximately five (5) acre portion of the Project Site to the City. 5. Hammons has requested that the City, pursuant to Chapter 380 of the Texas Local Government Code and the City's existing Economic Development Incentives Policy, make (i) a $500,000.00 grant (the "Grant") to Hammons and (ii) a $1,500,000.00 loan (the "Loan") to Hammons, to facilitate the acquisition ofthe Hotel Site by Hammons. 6. The City Council has determined that the potential construction and operation of the Hotel and Conference Center on the Project Site would have significant economic development benefits to the community including generating additional tax revenue and enhancing employment oPPOltunities within the City and that therefore it is appropriate to make the Grant and Loan pursuant to the telms of this Agreement to facilitate the acquisition of the Hotel Site by Hammons in efforts to further the Project, notwithstanding the fact that the parties have yet to reach any definitive agreement concerning same. 7. In accordance with Section 8.16 of the City Charter, the City Council declares that a public necessity exists that requires an amendment to the City's 2004-2005 Budget to provide funding for a Chapter 380 Economic Development Grant and Loan Agreement with John Q.