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I I I 48. RESOLUTION NO. 2006--1lR A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS APPROVING A THIRD MODIFICATION TO THE CHAPTER 380 ECONOMIC DEVELOPMENT GRANT AND LOAN AGREEMENT WITH JOHN Q. HAMMONS, TRUSTEE REGARDING THE HOTEL AND CONFERENCE CENTER PROJECT; AND DECLARING AN EFFECTIVE DATE. RECITALS: 1. The City Council adopted a Resolution dated July 14, 2005 approving a Chapter 380 Economic Development Grant and Loan Agreement (the "380 Agreement") between the City and John Q. Hammons, as Trustee of the Revocable Trust of John Q. Hammons dated December 28, 1989, as amended and restated ("JQH"). 2. The Agreement relates to a joint project (the "Project") whereby (a) JQH would construct and operate a full service upscale hotel (the "Hotel"), and (b) the City would construct, and lease to JQH, a first class conference center facility and related improvements (the "Conference Center") adjacent to the Hotel. 3. Under the Agreement, JQH and the City acquired adjacent tracts of land located in San Marcos, Hays County, Texas to serve as the site for the Project. 4. JQH and the City are in the process of negotiating a definitive development agreement (the "Master Development Agreement") concerning the parties' respective obligations relating to the Project. 5. As amended by the Second Modification to the 380 Agreement approved by the City Council on November 15, 2005, JQH will be in default of its obligations under the 380 Agreement if the Master Development Agreement is not executed by the parties by January 18, 2006. 6. JQH has requested an extension of this deadline in the 380 Agreement to February 22,2006. 7. The City Council is willing to approve the requested extension under the terms and conditions of the Third Modification to the Chapter 380 Economic Development Grant and Loan Agreement in substantially the form attached to this Resolution. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: PART 1. The City Council approves the Third Modification to the Chapter 380 Economic Development Grant and Loan Agreement between the City of San Marcos and Mr. John Q. Hammons, Trustee of the Revocable Trust of John Q. Hammons dated December 28, 1989, as amended and restated, for the development of the Hotel and Conference Center Project, in substantially the form attached to this Resolution. PART 2. The City Manager, Dan O'Leary, and the City's attorneys, Mark Taylor and Pete Broderick, are authorized to negotiate the final form of the Third Modification to the Chapter 380 Economic Development Grant and Loan Agreement and related documents, and the City Manager, Dan O'Leary, is authorized to execute the final modification and related documents on behalf of the City. PART 3. This resolution is effective immediately upon adoption.