Res 2004-184 - Laserfiche WebLink

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I I I The Lease would (i) require Hammons to make the Conference Center available to Hotel users and non-Hotel users on an equal, non-discriminatory basis and obtain the City's approval of the rates Hammons charges for the Conference Center, which approval would not be umeasonably withheld, (ii) include non-discrimination covenants acceptable to the City; and (iii) require City approval for structural or other major alterations, in addition to such other terms as the City may require. Hammons would also be obligated to pay the City an amount equal to thirty percent (30%) of the City's debt service payments on the indebtedness issued in connection with the design, construction and fixturing of the Conference Center attributable to the period from the date such indebtedness is issued through the date the Conference Center Lease commences. The City would retain naming rights for the Conference Center, subject to Hammons approval of the identity of any party to whom City would grant such rights, which approval would not be umeasonably withheld or delayed by Hammons. The right to derive any associated revenue from the naming rights would be retained by City. The City would also retain approval over all signage and logos placed on the Conference Center or the Conference Center Site. Any Lease would also provide that the City would have the right to use the large ballroom at the Conference Center once per calendar year at no room rental charge to the City and the City would have the use of one of the smaller meeting rooms, as selected by the City, twelve (12) times per calendar year at no room rental charge to the City (i.e., in each instance the City would not be charged for the room use but would have to pay for any food and beverage service related to such use). The definitive documents would contain a prohibition on transfer of the Hotel and/or any assignment or subletting of the Conference Center by Hammons during the term of the Lease without the prior written consent of the City, which consent will not be umeasonably withheld. In no event would the City be obligated to consent to any transfer of the Hotel or Conference Center Lease to (i) a public entity exempt from ad valorem or other taxation under the laws of the State of Texas or (ii) to any third party which, in City's discretion, does not have the same level of experience, and/or reputation for quality, as Hammons in operating projects such as the Project. Notwithstanding said prohibition, in the event the Hotel is transferred at any time during the term of the Conference Center Lease to any entity that is exempt from ad valorem or other taxation under the laws of the State of Texas, such transfer would, in addition to constituting a default under the Conference Center Lease and without limiting the City's rights as a result of such default, result in an increase in the rent owed under said Lease to an amount equal to the sum of one hundred percent (100%) of the annual debt service on the indebtedness issued by the City in connection with the design, construction and fixturing of the Conference Center plus an amount equal to one hundred percent (100%) of the Reimbursable Portion of the City's annual debt service on the indebtedness incurred to design and construct the public improvements described in Exhibit "A" attached hereto. In addition, any such transfer would also result in a payment then being due to the City in an amount equal to the then present value of the property tax revenue which the City expects to receive over the thirty (30) year period following the transfer, which amount would be calculated using (i) the appraised value of the Hotel at the time of the transfer with a one percent (1 %) increase in the value thereof assumed for each of said thirty (30) years; (ii) an assumed tax rate equal to the City's property tax rate at the time of the transfer; and (iii) a discount rate of six percent (6.0%). 5 693114 13