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HomeMy WebLinkAboutO-1993-1883 . . ORDINANCE NO. 93-1883 AN ORDINANCE AUTHORIZING AN AGREEMENT WITH SUNBELT HOTELS, INC., FOR DEVELOPMENT OF PRELIMINARY PLANS FOR A HOTEL-CONVENTION CENTER WITHIN THE CITY OF LA PORTE; PROVIDING FOR AN APPROPRIATION OF $12,500 .00 FROM THE HOTEL-MOTEL TAX FUND; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council of the City of La Porte hereby authorizes an agreement with Sunbelt Hotels, Inc., in accordance with the terms and conditions of letter of January 8, 1993, from the City of La Porte to Sunbelt Hotels, Inc., a copy of which is attached hereto and made a part hereof for all purposes, for development of preliminary plans for a hotel-convention center in the City of La Porte. The City Council of the City of La Porte hereby authorizes an appropriation of $12,500.00, from the hotel- motel tax fund for such purpose. section 2. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the City for the time required by law preceding this meeting, as required by the Open Meetings Law, Article 6252-17, Texas Revised Civil Statutes Annotated; and that this meeting has been open to the public as required by law at all times during which this ordinance and the sUbject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. . . ORDINANCE NO. 93-1883 PAGE 2 PASSED AND APPROVED, this 11th day of January, 1993. CITY OF LA PORTE By-lb~ ~~~1J ~an t~/ ~lbne, M~or ATTEST: ~ ~ Cher1e BlacK, C1ty Secretary ~~ Knox W. Ask1ns, C1ty Attorney " ..r -. ".,... .~.... . JAN 191m "J ~:J ~;' City of La Porte Established 1892 January 8, 1993 Mr, Ron E, Jackson, President Sunbelt Hotels, Inc. 2600 Citadel Plaza Drive, #507 Houston, TX 77008 Dear Mr. Jackson: By letter agreement dated October 12, 1990, the City of La Porte and Sunbelt Hotels, Inc., agreed to pursue a hotel-convention center for a site at Sylvan Beach Park in La Porte. This phase of the project has now been successfully completed. The next step in this process requires the preparation of preliminary plans for a hotel-convention center at Sylvan Beach Park in La Porte, at an estimated total cost of $35,000. It is contemplated that this cost will be provided and paid as follows: Sunbelt Hotels, Inc. City of La Porte Private Investors $ 10,000 12,500 12.500 $ 35,000 Total In addition, it is contemplated that Sunbelt Hotels, Inc. will provide additional contribution of services, as described on Exhibit nAn attached to this letter. The sum of $25,000 shall be deposited in an escrow account at the City's depository, Bayshore National Bank of La Porte, Texas, with signature control by the City Manager of the City of La Porte, to be dedicated exclusively to the purposes set forth in this letter agreement. Sunbelt will reimburse Mitchell Carlson and Associates direct ly for their share ($10,000) of the preliminary plan and associated design fee of $35,000. The proposed project expenditures in the development of preliminary plans for the hotel'.convent ion center at Sylvan Beach Park, are more part icularly described on Exhibit "B" attached hereto and made a part hereof. In the event the proposed hotel-convention center is constructed, all documented fees and expenses paid by the City and Sunbelt Hotels since 1990 in conjunction with the Sylvan Beach hotel project, and the sum of $12,500 paid by the City of La Porte under the terms of this letter agreement, shall be reimbursed from and out of the first draw on the construction financing. If construction of the P.O, Box 1115 0 LaPorre,Texas77572.1115 0 (713)471-5020 .. t . e .. ;,:=:' -" January 8, 1993 Page 2 project has not conunenced within two years from the date of this letter, ownership of the plans and specifications shall revert to the City of La Porte. If this letter and attached exhibits accurately reflect your firm's understanding of its agreement with the City of La Porte, please sign and return a copy of this letter, retaining the other copy as your copy of the agreement. The City of La Porte looks forward to continued cooperation with Sunbelt Hotels, Inc., in the successful completion of this project. Yours very truly, C IlY OF LA PORTE BY: CX~ T. \-\-~ Robert T. Herrera City Manager ACCEPTED AND AGREED: SUNBELT HOTELS, INC. . BY'Ron t1:ft!}/- President Attachments " . e A. Employ architect with experience in hotel design and development Provide a description, scope and design consultation to the architect B. Mail construction bid specifications, tabulate and identify most responsive builder. C. Negotiate construction contract. D. Prepare Limited Offering Package - Make presentations to prospective Limited PartneIS, sign Limited PartneIS to contractual agreements, collect funds as required. E. Prepare and submit loan package to First Mortgage sources. Secure long term mortgage for the project F. Determine the appropriate franchise affiliation. G. Manage development of project through construction phase. Prior to opening, conduct industry and statewide marketing campaign, hire, staff, train all employees. Manage the hotel with a management contract. H. Provide City Manager with regular updates on the project and copy City Manager with all documents and letteIS sent out on behalf of this hotel project. I. When needed, address the City Council with updates of the status of the project and the direction being pursued by Sunbelt Hotels Ine. . . A. Architectural: Completion of a preliminary 160 - 200 hotel, suite, conference center design to include a site plan, four elevations, typical guestroom/suite and public area layout In addition, a scale model of the hotel and a color rendering. B. Loan Package: Preparation of complete loan package to include Limited Partnership offering, financing presentation for primary mortgage holder. Loan packages to include market study, description of facilities, financial projections, architectural design. A certain amount of legal fees will be required in preparation of the Limited Partnership private offering.