Res 2006-208 - Laserfiche WebLink

Home Browse Search

RESOLUTION N0.2006-ZOS R A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS APPROVING A FIFTH MODIFICATION TO THE CHAPTER 380 ECONOMIC DEVELOPMENT GRANT AND LOAN AGREEMENT WITH JQH-SAN MARCOS DEVELOPMENT, LLC 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 (the "Hammons Trust"). The Hammons Trust executed an assignment of the 380 Agreement to JQH-San Marcos Development, LLC ("JQH"), approved by the City in the Assignment, Assumption and Fourth Modification to Chapter 380 Economic Development Grant and Loan Agreement. 2. The 380 Agreement relates to a joint project (the "Project") under which (a) JQH will construct and operate a full service upscale hotel (the "Hotel"), and (b) the City will construct and lease to JQH a first class conference center facility and related improvements (the "Conference Center") adjacent to the Hotel. Under the 380 Agreement, JQH and the City acquired adjacent tracts of land located in the City to serve as the site for the Project, and the City loaned $1,500,000 and granted $500,000 to JQH to facilitate purchase of the hotel site. 3. JQH and the City have executed a definitive development agreement (the "Master Development Agreement") concerning the parties' respective obligations relating to the Project. 4. The cost for construction of the conference center came in under the "opt-out" amount in the Master Development Agreement. However, the cost for construction of the hotel came in above the "opt-out" amount. JQH has advised the City staff that it will proceed with construction of the Hotel in spite of JQH's right to opt out, if the City will convert the $1.5 million loan under the 380 Agreement to a grant. 5. The City Council is willing to approve the requested conversion of the $1.5 million loan to a grant in a Fifth Modification to the 380 Agreement, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SAN MARCOS, TEXAS: PART 1. The City Council approves a Fifth Modification to the Chapter 380 Economic Development Grant and Loan Agreement between the City of San Marcos and JQH-San Marcos Development, LLC. PART 2. The City Manager, Dan O'Leary, and the City's attorneys, Andy Quittner and Pete Broderick, are authorized to negotiate the final form of the Fifth 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. ADOPTED on December 4, 2006.