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Regular Meeting November 8, 2004 37. Page 5 stated in the event the Hotel is transferred during the term of the Iconference Center lease, one hundred percent of the annual debt service would be paid to the City, and the project cannot be turned over to a non- taxing entity. He inquired whether the City can prohibit a non-taxing entity from purchasing the Hotel/Conference Center. Mr. O'Leary stated the City does not have the authority to prohibit the State of Texas from using the power of eminent domain to take a piece of property. He stated for some reason if the State of Texas decides they are interested in using the Eminent Domain to purchase the Hotel, then they would be required to pay our debt on the Conference Center. Mr. Thomaides provided the Council with an article from the Austin American-Statesman newspaper regarding an article about a long-planned Hotel and Conference Center at the University of Texas moving one step closer. He stated the plans call for a 250 room hotel with thirty thousand square feet of Conference space to be built and owned by the University of Texas. He stated since the Council first spoke to the citizens regarding this project it has changed. Instead of Mr. Hammons building it, now the City will build it, which would need to go through the bid process. Mr. O'Leary stated the City of San Marcos will be building the Conference Center, and the Council will still need to decide on the financing. He stated the City can either pay cash or borrow money using Certificates of Obligation, General Obligation Bonds or a Tax Anticipation Note for short-term financing. Mr. Taylor stated when the Icouncil spoke to the representatives from Texas State University regarding the University's Master Plan, they did not show an interest in regard to the Conference Center. He stated he also realizes the representatives from the University are not the ultimate decision makers when it comes to using eminent domain to take over the Conference Center. Mr. Bose inquired whether the environmental assessment has been completed. Mr. O'Leary stated the environmental assessment is scheduled to be completed in early December. Mr. Bose stated he has some concerns with the traffic in this area. Mr. Mihalkanin moved to amend Page 2, subtitled II Environmental Considerations, second to the last sentence to read...consul tant and which are approved by the City Council, and Mr. Guerrero seconded the motion, which passed unanimously. Mr. Mihalkanin stated the Tax Incentive Reinvestment Zone could insure tax revenue from the site goes to payoff the debt. He stated he supports this project. Mr. Diaz thanked the citizens for their participation with this project. He stated he feels this project is good for San Marcos. He also stated this MOU is a way for the Council to continue the negotiations with Mr. Hammons. Mr. Guerrero stated he feels this project will bring jobs to the community. He also stated he supports moving forward with this project. Mr. Thomaides stated he feels the Council has not hidden anything regarding this project, and the Council went public with this project as soon as possible. Mr. Taylor stated he supports this project unless the Iproject causes an increase in ad valorem property taxes or the environmental assessment proves this project will cause damage to the environment. Mayor Narvaiz stated the Council has discussed several finance options regarding this project. She also stated the Council