R2005-0153 10-10-05RESOLUTION NO. R2005-153
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A HOTEL OCCUPANCY TAX REIMBURSEMENT
AGREEMENT WITH SHADOW CREEK HILTON GARDEN INN, LLP.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Agreement by and between the City of Pearland and
Shadow Creek Hilton Garden Inn, LLP, a copy of which is attached hereto as Exhibit "A"
and made a part hereof for all purposes, is hereby authorized and approved
Section 2. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest an Agreement with Shadow Creek Hilton Garden Inn, LLP.
PASSED, APPROVED and ADOPTED this the 10th day of October
A.D., 2005.
ATTEST:
NG LO
SECF4ETARY
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
D.„
TOM REID
MAYOR
Exhibit "A"
Resolution 2005-153
HOTEL OCCUPANCY TAX REIMBURSEMENT AGREEMENT
This Hotel Occupancy Tax Reimbursement Agreement (the "Agreement") is
made and entered into effective as of this the !!ft" day of October, 2005, by and
between the City of Pearland, Texas, a municipal corporation (the "City"), and Shadow
Creek Hilton Garden Inn, LLC ("the Developer").
RECITALS
WHEREAS, Developer plans to construct a Shadow Creek Hilton Garden Inn or
equivalent ("the Improvements") consisting of 120 rooms, full food and beverage facility
and a minimum 8,000 sq. ft. conference center in the SH 288/Shadow Creek Ranch
vicinity; and
WHEREAS, the estimated total cost of the improvements is $14,000,000; and
WHEREAS, the City desires to enter into a Hotel Occupancy Tax
Reimbursement Agreement with Developer to ensure the construction of the
Improvements.
WITNESSETH:
NOW, THEREFORE, in consideration of the foregoing premises and other good
and valuable consideration the receipt and sufficiency of which is hereby acknowledged,
it is hereby agreed as follows:
1. Developer agrees to construct the Improvements in accordance with the criteria
identified in Exhibit A, with said Improvements being constructed and operational
on or before two (2) years from the date of this agreement (Improvements shall
be operational for a period of eight (8) consecutive years). In the event that the
Improvements are not completed and operational in accordance with this
Agreement, then City shall provide Developer written notice of default. If
Developer has not cured such default within sixty (60) days of said written notice,
this Agreement may be terminated by the City.
2. Pursuant to its authority under Chapter 30. TEX LOCAL GOV'T Code, as
amended, the City agrees, for a period of eight (8) years from the issuance of a
Certificate of Occupancy for the Improvements, to reimburse Developer seventy
one percent (71%) of the Hotel Occupancy Tax Revenues generated by the
Improvements and collected by the City. All amounts reimbursed pursuant to this
section shall occur within thirty (30) days of the Developers filing of the Quarterly
Reports as defined in City of Pearland Ordinance No. 718.
3. In the event that the Improvements are constructed and operational, but
operations subsequently discontinue for any reason other than fire, explosion or
other casualty or accident or natural disaster for a period of one year during the
reimbursement period, then Developer shall be in default of this Agreement. As
liquidated damages in the event of default, all tax revenues reimbursed to
Developer by the City will become a debt to the City and shall be due, owing and
paid to the City within sixty (60) days of notice of the default.
4. Any financial obligation of the City arising from this Agreement shall be payable
solely from the proceeds of the Hotel Occupancy Taxes actually collected from
the improvements pursuant to City of Pearland Ordinance No. 718.
5. This agreement may only be amended, modified, or supplemented by written
agreement and signed by all of parties.
6. No assignment by a party hereto of any rights under or interests in this
Agreement will be binding on another party hereto until assignment is approved
by the other party.
7 Nothing herein is intended to supersede or waive any City ordinance or
regulation pertaining to such construction.
8. Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision of
this Agreement is prohibitive or invalid under applicable law, such provision shall
be ineffective to the extent of such provision or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.
9. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of Texas.
10. This Agreement and all obligations created hereunder shall be performable in
Brazoria County, Texas.
11. City Resolution No. R2005465 is incorporated herein and made a part of this
Agreement for all purposes.
In witness whereof, the parties have hereunto set their hands and signatures on
the date first above mentioned.
ATTEST: CITY OF PEARLAND
47(i7 ng ing
y Se retary
By:
Bill Eisen
City Manager
SHADOW CREEK HILTON GARDEN INN,
LLC
By:
By:
Printed Name:
Title:
C.4/
STATE OF TEXAS
COUNTY OFz�:
BEFORE ME, the undersigned Notary Public, on this day personally appeared
Bill Eisen, City Manager of the City of Pearland, known to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged to me that he/she
executed the same for the purposes and consideration therein expressed, on behalf of
said City of Pearland.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS /( DAY OF
CJI c_-4: , A.D., 2005.
I
PERLA N. LEHMAN
Notary Public, State of Texas
My Commission Expires
APRIL 22, 2009
STATE OF TEXAS
COUNTY OF HARRIS
NOTARY PUBLIC IN AND FOR THE
STATE OF TEXAS
Printed Name: ,-,v//-
My Commission Expires: -//'0�
BEFORE ME, the undersigned Notary Public, on this day personally appeared
C ,` ✓ � n F ,'t i7evcz._ , /7}icula q cC. _ of Shadow Creek Hilton Garden Inn,
LLC., a Texas limited partnership, knoWii to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he/she executed
the same for the purposes and consideration therein expressed, on behalf of said
limited partnership.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS ,ii .n, DAY OF
)4t.o,t , A.D., -2005.
�C(;6.
Linda M. Shaw
MY Commission Expires
12/21/2008
4/LL
NOTARY PUBLIC IN AND FOR THE
STATE OF TEXAS
Printed Name: t& l f d (— /4 31-16n47-
My
n6n47-
My Commission Expires: i-/Pi/)7co,6
Exhibit "A"
1. Hilton Garden Inn or equivalent
2. Minimum of 120 rooms
3. Full service food and beverage facility
4. A minimum Eight Thousand square foot (8,000 sq. ft.) conference center
5. All facilities constructed in accordance with City of Pearland rules and
regulations
1706.0\272294.3 RROSE