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R2007-081 2009-05-14 RESOLUTION NO. R2007 -81 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING A HOTEL OCCUPANCY TAX REIMBURSEMENT AGREEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain amended Hotel Occupancy Tax Reimbursement Agreement, 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 amended contract for Hotel Occupancy Tax Reimbursement Agreement. PASSED, APPROVED and ADOPTED this the 14 day of May, A.D., 2007. ThIlt) P TOM REID MAYOR ATTEST: UNGii IC' R'1� TY S RETAR APPROVED AS TO FORM: 0 2■ 11 `•L• A al DARRIN M. COKER CITY ATTORNEY Exhibit "A" Resolution 2007 -81 CITY OF PEARLAND STANDARD AMENDMENT TO HOTEL OCCUPANCY TAX REIMBURSEMENT AGREEMENT This Amendment (hereinafter "Amendment is made between the City of Pearland, Texas (hereinafter "City and Shadow Creek Hilton Garden Inn, LLC (hereinafter "Developer to amend that contract (the "Contract between the City and the Developer executed on October 11, 2005. 1. Amended Terms. The City and the Developer hereby agree that the Contract is amended as follows: A. First WHEREAS clause. Developer plans to construct a Shadow Creek Hilton Garden Inn or equivalent "the Improvements consisting of 130 rooms, full food and beverage facility and an 11,000 sq. ft. conference center it the SH 288 /Shadow Creek Ranch vicinity. B. Section 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 October 1, 2008 (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. C. Section 2. Pursuant to its authority under Chapter 30. TEX LOCAL GOV'T Code, as amended, the City agrees, to reimburse Developer seventy one percent (71%) of the Hotel Occupancy Tax Revenues generated by the Improvements and collected by the City for a period of ten (10) years from the date of issuance of Certificate of Occupancy for the Improvements, but in no event shall the amount reimbursed to Developer exceed $1.84 million dollars. 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. D. Exhibit A. 1. Hilton Garden Inn or equivalent 2. Minimum of 130 rooms 3. Full service food and beverage facility 4. Eleven Thousand square foot (11,000 sq. ft.) conference center 5. All facilities constructed in accordance with City of Pearland rules and regulations 2. Contract to Remain in Force. Other than the provisions of the Contract expressly amended herein, the Contract shall remain in full force and its enforceability shall be unaffected by this Amendment. EXECUTED and EFFECTIVE as of the 2 I s} day of MI 2007. ATTEST: CITY OF PEARLAND x ,14• !T By: Bill Eisen ioung /rfing ity Secretary City Manager PEARLAND CAPITAL GROUP LP 6 0 14* (1411 I vi By: William F. H rmeyer, Manager of its General Partner Shadow Creek Investment Group LLC, dba Shadow Creek Hilton Garden ,„ • Peariand EDC — • o To: •aill-Eien From: Fred Welch CC: City Council Date: 5/7/2007.- Re: Hilton Garden Inn Hotel Motel Tax iebate Bill: As You.are aWare the Hilton Garden Inn Project is nearing approval for it building perniit The project although delayed in starting still appears to merit consideration bj(oity.Coptcil for:approval of a,rebate of Hotel Mae( taxes to support construction of what is now an 11 000 square loot conference center The attorney for the,investors has submitted a revised pro forma and spread sheet which is enclosed with thiS:rnemOrendum.,There are two issues.that Council needs to tonSider,they-,,pre:flot mutually eXalusive. First—The project as approved by Council in 2005 called for construction to be complete by Octoberof 2007.,Aeoonstruction:has not started this date is not going to be met Mr Harmoyerlattorneyfor the investment group) is requesting Council approve an extension of the construction time to twelve months from commencement,of construction or October 2003, whichever occurs first-rme. Harmayer believes that the project Will.be Completed by April 200eif:construction commences in Masi:.[-believe we all see merit in the project and I would recommend an extension of-the construction time to allow them tO'compilete everything in a tirriely-Menner. Second The conference facility has increased in size from 8000 square feet (I thought it was 9000 .square feet)to an 11,000 square foot facility The original projection for construction;:famitUrey'fixtures and equipment was-$1,000,000: The new projection is for a facility cost of$1,000,000 pltis„$200;000 for furniture fixtures and Equipment.A larger facility calls for additional land for;the building, set back and parking :assuming a ration here and estimating that 8,000 square feet of the additional acre--ofierid purchased in this final transaction is for the,conference facility; Using the sales pride'of $10.56-per square foot in their analysis this adds an additional Cbtt.,Of'S82t;480for'a.nPYtt Price in the range of$1,204,400. The original:5% rebate of hotel.motel-taxes-was for eight years to pay out the$1,000-,000: Using the _projections-providecity thaattorneyit appears either a longer payout period at the 5% rate or higher percentage of the HOT money 0%has been suggested)over.e.seven to eight year period of time Will be.needed to pick up the roughly 30% increase in construction and land costs associated-with the- Meeting.end conferencecenter. Mr.Harmeyer has-suggested two alternatives 1 1. an increase in the rebate from 5% of,the 7% obciipandy.tak received by the city from this project only over 8 years to 6%of the 7%for the first five years and 5%,of the HOT money from the project for the remainder of the 8 year term or 2, an extension of.the existing rebate agreement from 8,years to 10 years There are arguments to support'both requests. Option 1 Will give the investor e the estimated $1:284 million back over the original 8 year period but in the first five years would reduce funds the city-and Chamber could use to advertise and promote business into the facility.This is probably the leeser of the two alternatives as the City and Chamber should want to advertise more aggressively in the initial two yeare,to book business into the facility. The.secorld Option of Wending the ternof reimbursement eight to ten yeare,with e caveat that it end at 10 years or$1:2134 million in reimbursement to the developer is more in spirit of the original agreement and allows for maximizing the resources of the City and'Chamber to promote business into the facility. Staff recommendation is twofold: 1.. Amend the time lihe for construction on the original agreementforoonstruction to be finithed NLT.October 2008. 2. Approved extension of the time for reimbursement under the.agreement to $% of the HOT funds generated from the Hilton Garden Inn Project to the lesser of 10 years or$1:84 million d011ars,whichever Occurs'first, Fred Welch • e Page 2 1 September 26,2005 Mr.William F.Harmeyer Attorney and counselor at Law 7322. Southwest FreeWay Houston,Texas 77074 RE:Shadow Creek Hilton Garden:Inn,LLC request for incentives Dear Mr,.Harmeyer: Staff-has reviewed your recent letter dated September 8,2005 concerning Occupancy Tax Refunds or rebates and Tax abatement for the,above=mentioned project Let me address the issues,as proposed iri'your letter; L. Refund of lop% City of Pearland Hotel Occupancy Tax for a period of seven years. (7 Percent) I believe a refund in the range of 5%of the City Hotel Motel Taxes Will have more appeal,.This will allow the City to advertise and promote the facility to:assist in bringing moreovents to the Hilton Garden Inn. 2. Proposed 2%.refund from Brazoria County of their 2%occupancy tax for seven years. Lcannotspeak for the Commissioners Court We can certainly.assist you in visiting with them.This type of incentive has not been done anywhere else in the County andoould meet with some resistance. 3. Abate 75%of property tax due to The City of Pearland for seven years.This property is located within a Tax Increment Reinvestment Zone and cannot be abated. The new increment created by this investment is already-pledged for reimbursement through the TIRZ for infrastructure(water, sewer, drainage). This is to your advantage since your client does not have to bear the burden of putting that infrastructure,in place. A 5%refund of the Hotel Occupancy Tax would,based upon your client's projections yield approximately$ 1,070,000 back to your client over seven years. This is Toughly the, cost of the 8;000 square foot conference and event-center.-I cannot speak for our city councii. This matter would require their approval under some sort.of development -agreement under Section 380 of the local government code. I would be happy to assist you in this matter, Any legal documents should however go through our city attorney,Mr.Darrin Coker. This matter needs to go before council for apprdval. Our city council normally meets on the first and fourth Monday of the month.I Would suggest meeting with Council in executive session as quickly as possible to arrive at a consensus,on this project as to the level and type of incentives.A deVOlopment agreement can be worked out between all parties and then put on.agenda for consideration and or approval by council.This can be accomplished in a 30-day time frame-but a great deal of coordination must take place if you client Is looking at deadline of the end of October. If I can be of further assistance to you in this Matter,do not hesitate to contact me at 281-- 652-1629,or via e-mail f-weldbeci,pearland.tx.us. Thank you for your assistance. I look forward to,Working-with you and.your team on this project. Sincerely, Fred Welch CEcD Executive Director FAW: CC Bill Eisen (City Manager) Darrin Coker(City Attorney) • H_ARMEYER & FOWLER. 475 Arena Tower One William F.Harmeyer LT P 7322 Southwest Freeway Attorney Houston,Texas 77074 TeL(713)2*5552 'Facsimile.(713)270-7128 Ayharrne);er©hartneyerlaw:ctiin Tuesday, February 06, 2007 Mr..Fred Welch, CEeD Via,email fwelchQ,ci.pearland.ttus Executive Director and Facsimile(281)652-7104 Pearland Economic Development Corporation 3519 LibertyDriVe Pearlarid,Texas 77581 Re.: Shadow-CreekfHilton Garden Inn Request fotAVIodification of Hotel'Occupancy Tax Reimbursement Agreement. • Dear Mr.Welch: On behalf.of the developers;of the Shadow Creek:Hilton Garden Tim— Pearland project, We are pleased to advise that groundbreaking IS scheduled to occur in the next 3-4 weeks subject to modifications of the above referenced Agreement and final lender approVal. 'The scope of the project: has increased to- accommodate the requirements and spedifitations of all parties, including the City and }Tilton Corppla-tion, Specifically, the conference facilities have been expanded from 8,000 sq, feet to 11,000 sq. feet, and the.number of ropmShasincreased.froth 120 to 138'. The size of the tract has also increased from:3:5 acres ip,4.25 acres and is now located-at.the corner of Reflection Bay and Shadow Creek Parleway., As :you are aware,:convention facilities increase the cost Of:a,project and provide only marginal net income to the bottom dine. For this'reason; the City of Pearland accommodated the project by entering into the above referenced Agreement in order to help defray some of the Cost. Since the Size and.cost of the,project has now increased, the developers have requested a modification of the above:referenced agreement to provide either: (1) an increase in the rebate from 5% of the 7% occupancy tax over 8 year ,to'6% of the 7% for the first 5 years and 5°4 ofthe 7% for the remainder of the 8 year term;or (2)an extension of the existing rebate agreement from:8 to 10 years. Additionally, platting delays have occurred which were beyond the control Of developers in accommodating neighbors and the City of Pearlancl. Accordingly, the developers are requesting:amextension:of the period of time under the Agreement for the hotel to be constructed and operational from October.10,2007,:to April:30;2008. • • Page'2 Mr. Fred.Welch, CEcD Pearland Economic Development Corporation Re:Hotel Occupancy Tax Reimbursement Agreement Tuesday.February 06. 2007 We are hopeful that these matters may be approved at the next City Council Meeting in order that we can receive final lender approval to proceed with groundbreaking. We would welcome the opportunity to present this request and respond to any questions in an Economic Developmentity Coupcil.Executive Session. If you have any questions or comments,please give me a call. Very truly yours, HARMEYER&FOWLER, LLP is/William F:Hannever William F. Harmeyer WFH/lms Enclosures, cc: Clients HELTON:GARDENINNSHADOW CREEK PEARLAND,TEXAS :Project Cost Projection Land Acquisition '$1;600,000 HOtel(72,000 Sq,,ft.; 120 roOrns): • Building Construction .$7; 00,000 Furniture,Fixture arid Equipment $1,500;000 Coderente.Center(9;090.sq.ft.) (including F,F&E) $1,00.0,000 Franchise Fees and.Costs (including softWare,hardware, reServationand aecounting Systems) $290,000 ConStrnction Charges (permit fees,impact fees,prop'.Taxes) $200,000 Architect-and-Engineering Fees $200,000 Signage $70,000 Working Canitaland Pie-Opening EXpelises $500,000 CoMmisSions,DevelopmentFees and Project Fees :;$500,000 Contingency :$300.000 TOTAL: $13,870;000 1 PEARLAND CAPITAL GROUP LP PEARLAND,TEXAS PROJECTEDINVESTMENT SUMMARY COSTPROJECTIONS Land acquisition(4.25 acres) $1,943;865.00 Construction Hotel(83,480,sq.ft.—137 rooms) Building Construction $9,0,00,000:00 Conference Center(11,000 sq.ft.) 1,000;000.00 Construetion Contingencies 200,000.00. Eurniture,Fixtures.&EquipMent Hotel(137 rooms) $1,700,000.00 Conference Center(11,000.sq.ft.) 200,000.00 Franchise Fees&Costs (including Software,Hardware, Reservation&Accounting Systems and Internet) $ 200,000.00 -Construction Charges (including Permit Fees,Impact Fees, Property Taxes,Construction Interest) $ .400;000.00 Loan Closing Costs(loan origination fee,appraisal and closing costs) $ 100,000.00 Architect,Engineering and Professional Fees. - .$ 360,000.00 Signage $ 70,000.00- Working Capital&Pre-Opening Expenses $ 500,000 00 Development&Project Fees $ 530,000.00. Additional Project Contingency $ 150.000.00 TOTAL $16,353,865.00 "-:--. „....„......,,, ..... __ .... • , • -'( • , 3/3012007 Hilton Garden Inn and Conference,Centre, 'Skil PM US $$ .. Shadow Creek- ,. Income Statement Forecast Yr 2007,,,2008,2009,2010,.2011,2012 and,2013 . , ,StatIstical Key Inforniatleh . i• i : i - Yr 2007 % Yr 2008, / Yr 2009. % Yr.2010 % . Yr 2011 % Yr.2012 % Yr 2013 % Number of Rooms 120 , , 120 , 120 .120 120 120 ,120 , Number of Days. 365 •' .365 '365 365 366 ' . 365 365 _. _____ -_ Rooms Available: 43,800 43 800 43 800 43,800 43.800 - 43,800 - 774i,ii00 . _ . . , ..._...._______ _ _ Rooms Sold 25,842 '28;470 29.348 . 29,784. 30,222. 30;680, . 31,098 .._ _ Guest InFlouse " 33,078 .38,442 37,563 . . 38,124 -38684 3%245. .. . . 39,805 .---- _ Occupancy Percentage • 59.00% 85.00% . 67.00% 68.00% ' .69.00% 70.00% 7100% .... Average.RooM Rate _ 97.00 .101.00 ' 103.00 .106.00. 107.00 in.ao- imoo RevPAR ,57.2.3' •66.66 , 69.01 : 71A0- 73.83. . 75.60 • -76.68., Revenue. Yr 2007 %' Yr 2008 '. %. Yr 2009 %.- Yr.2010 . .% . Yr 2011, % - Yr 2012 % Yr 2013' Rooms . 2.505874 82. 2,875,47G 82. 3,022,638 -80 3.127,320 79 3;233,754.-79 3,311;280 .79 '3,358584 78 , Food ,325,000 11 385,000 -11 445,000 12. .480,000 12 530,000- 13 550,000. 13 560,000 13 r3eiterage, 75,000 .2 .90,000 3 105,000 3 .120,000 3 '130,000 3 135,000 37- 140,000 3 Meeting Rooms!Conference 90000 3. 120.000 :3 140,000 .4 150;000. 4 ' ' -150,000 4 155,000 4 160,000 4. Telerihone&Telex 16,000, 1 16000 0 16,000 0 16,000 0 16,000 O. 16,000 0 16.000 .0 Others 36,000.. 1 -38000 -1 40,000 1 42,000, 1 45,000 t _ 45,000, . 1 45,000 1 Total Revenue 3,048.674. loci 3.524.470. 100 3.768638 100 3,935.320 100, 4104.754 100 4,212280 100 4.279,584 100 Rooms. , . Room Revenue __,__ 2,506,674 100. 2,875.470' 100 : 3,022,638 100 3,127,320 100 -3,233,754 100 3,311,280 100 3358,584 100 Direct Wages , ' .451,201: 18 '517,585 18 544,075 18 : 562918 18 .582,076 18 ' .596,030' 18. " 604,545 '18 Direct•Exp 176,721 7 202.721 7 213,096 7 -220A76 7 227.980 7 233445 7 ".236,780 7 Net Room Profit!'Loss 1.878.762 .76, 2.155.165' 76._ 2,265,467 '76' _.2.343,926 75 2,423699 75. ,:2,481,804 75 2,517269 75 Food . Food Revenue . 326000 100 -385.000 100. 445000 100 ' 480,000, 100 530,000 100 550,000 100. 560.000 100 Cost Oftales 104000 32 123200. 32 -142,400 32- 153600 32 169,600 -32 176000 '32 . 179.200 32 Direct Wages' . . 152,750 47 180,950 47 209150. 47 225600 47 '.249,100 47' 258600 47 263,2013 47,. Direct Exp . .24,538 8 25218 7 ' .29.148 7 . 31.440 -7 . 34715 7 36,025 7 36,680 7 Net Food Profit/Loss ' . 43,713 .13. 65.633. 14 64,303 14 ' 69360' 14 76,595 214 79,475 , 14 80,920 14. Beverage . . Beverage ReVenum 75,000 100 . 90.000. 100- ' 105,000 100- 120,000 100 . 130,000. 100 135,000 100' 140,000 .100 ..... Cost Of Sales- " " . 23,250 :31 27,900 31 32550 31 37200' 31 • ' 40.300. 31 41,850 ,31 '43,400 31 Net Bev.Profft/Loss 61.750 69 62,100 69 72,450 69. , 92,800 -69 89.700 69 93,150 69 96,600 89 Net Food&Bev Profit I Loss ,95,483 .24 117,733:.25 136.75.3 -26 162,160 25 166,286 25 172,625 26 177,620 25 - Meeting Ream . . . . . Meeting Room Revenue' _ ' 90,000 100 120,000, 100 140,000 100 150,000 100'' 150,0013 100- . 155,000 100 160,000 100 . Cost Of Salcit 62,000 .139 76,000 .63 98 _,000 69 .106.000 71 ' '106,000' 71. ' 106.000 88, 106.000 66 Net Meeting Room Profit/Loss ' p26,000 31. .44;000. 37 44,000 31 44.000 •29 .44,000 29 . -49,000 32 '64,000 34 Telephone&Telex _. . . .. . . . __ _ __ ____ _ __• _ - __ Telephone Revenue _ -_ . 16,000 100 16,000. 100 - 16,000, 100 . 00_0 100 16,000 100. 16000 7100. . 16,000 100 -cost of-saies . 14,000 86 . 14,000 88', 14,000 88 14,000 88. 14,000 68 -714.000 88 '14,000 68 Net TTX,Proflt/Loss . . 2000. 13 :2.000.. 13 '2,000 13 2,000 13 2,000 _13: 2,000 13 2,000 , 13 _ Others . ' , .. .. „ . . ___ ___ . " -- Other Revenue,._ ,.36,000 100 38,000 100 40,000 100. ,42,000. 100 45,06W 100 "40000 100. , 45000 100 . __ - ._... --. _ post 6f Sales „ , 27.000 75 • 28500. 75 . 30.000 75 31500- 75. 133,750 75 .33,750. 75 33,750 75 NeiProfitOthers 9,000 26 , 9,500 .25 - 10,000 25. '10,500 25, '11,260 :25 11,250 25 11.250 25 Oicratingjecorma ,___ _ _______ _,,,, . _____, , _. . _ Room - : 1178,752 62 2,155,165 61 .2,265467• :BO 2.343.926,.60 2423899 59 2,481,804* 59. 2517.,259 _59_, • NodWpm/ ...„:95A83 3.. 117,733 3- 136,753_4 : ,.,,152,160 4 ... 166,205 4__172,625. .4,,_ _ 177,520-_. fl.,,., Meeting Room 28 . 44 MO 1 44 000 1 .44 000 1 44 000 1 - 49,005--,71 .kbao- 1 telephone&feleic 2000, 0 2000, 0 ' 2,090. 0 2000 0 2,000 0 2000, 0.. .2.000.. 0 rs othe _ . .. 9,000 0 ,9,500 0 ' 10,000 0 ' 10500. O. '11,250 0 11,250 0 11250 0 ' • . . _ , ....,„ ......„„. , . . 3/30/2007 . Hilton,Garden Inn and Conference Centre . 5:01 PM US.St ' hadow4reeli. Income Statement Forecast Yr.2607.2009,2009,2010,2011,2012.and:2012 Total Operating Income 1 . 2;013,215 66 I 2,328.398 1 66 1 2.458,220 t 65 1 2,652.586 1,65.1 2,647;2341.64 .I 2,715,680 I 64 1 2,762,029 1 65. Overhand Dept F.xp • .• Yr 2007 . -Lia Yr 2008.. -% Yr,2009 % Yr 2010. % Yr.:2011-I % , Yr'2012 , % 'Yr 2013 .'%• .. AdrniniStratiOn' . 236,179 8 251;684 -'7 270,018. -7 276,789. 7 281,614 7 ' 286.324 7 297;048 7 Fleyroll 5.13enefits 120000 4 • .120,0001 130000 3 130,000 3 ' 130,000 .3 . 130,000 .3 . .140,000 -3 Service ffxp. , 105079. -3 121;594 3."- 130,018 -3 135,769 a . 141.614 3 -. 145;324 -3 147,645 -3 10,000 0 ' : 10,000 0 10,000 0 . 10,000 0: - -10;000 .0 10000 0,. '10,000 .0 . . Sales,&Marketing 172.219 8 " 186,999. 5 198.847- .5, . 203,596 5: 208,424 ":5 211,662. -5 . 213,668_ 5- Payr9111 Benefits , 75;000. 2: - 75,000 2,, ...80,000. .,2., .. 80,000 80,000 2 '80;000 2 ;80,000 2 Service Exp 53,352 2 61,678 ' 2 65.951 2- 6E3,868 2' 71,833 2' 73;715 -2 74193 2 Hilton FicineM Prp __ 43,067, 1 '50;321 1 52896. 1 54,728 1 56,591 .•1 ''57;947 1 . 58,775 _1 • . -Repairs&Maintenance - 161.460. 5- 185,734 6 193,059 5 208;080 5 213,143 5' 218,368. 5 218,388 5 Payroll&Benefits _ 70,000 2 -80.000 2 80,000 2 , 90,000 2 . 80,000 2 90,000 2 90,000 2• Service Exp ----- , 91,480 3 105,734, 3 113,059. 3 118;060 ,3 123,143 3, -126368 3-..,_ 128;388 3 Heat,Light&Power ,, .144,812 6. 180,363 -5 167.704 4 -173;154' 4 186,756. 5- 191,659 5 194,721. 5 Franchise,&Royalty Fees 200.534 .7 230,038 7 241.811 .6' 250.186 6 268;700 6' 164;902, 6' :268,687 6' ., . . . "Total Overhead•Exp 914.204- 30 1.014.728 29 1,071,440 28 1,110,784 28 -1148147 '28 1169;918, 28 ' 1;193,109, -2E1 - . . . .. . Gross Profit orLoss I 1,099;011 I 36 I 1,313,669 37 1. 1,388,780 1.37 ,,.1,441.822 37 1 1.498,6671,37 1 1.546,704.1 37 11;568,9201 37' Other Non Operating Exp • ; .. . ManapeMent Fees/Overhead 162;434 . 5 17E3,224, -5 188,432 5 196;766 5 "105;238-5 210,614 6 213,979 5_ insurance _ • 60,000 2 . 60,000' 2 60,000 -2 , 60000. i•2 60,000 1 .60;000 1 60;000 Tuiplacement Reserve . 0. .0 80.000 -2 80,000 -2 - 100,000 3' 100,000 2. -100,000 2- 100,000 2. Property Tex --- 180,000 ' 6 .180,000 .5 200,000 5 ; -200,000 :5 200,000 •5 200,000. 5 • :200,000 -5 Total Other Non Operating Exp 392;434 13 .496;224. 14. 628,432 14, 556;766 14 . 865,238 '14' -670,614-.14. 573;979 '13 . . . ... . . , . . . . • ., . . , . Net Operating Profit I 706;577 I'231 ,817,448 I 23 I ,058;348 I-22.I 885;066]22 I 633;3461,23- I 976 160 I 23 994,941 1 23- Owner's Debt Services . . Bank Interest on Long Term Loan 720,000 24 ' 704,400- 20 188;1300 18 673,200 17 557,600 16 642,000 15 626.400 15. Leases" , . 60,000 2 60,000 .2• 60;000 2. _ , 60.000 2- :60,000. 1. . : 60,000 1 60,000 1 aireholder's Lean . . . , 210,000 . 5 210,000`, 5 210;000 5 .. 210,000 5. - 210,000 :5 - 210,000 .5 210,000 -5 Debt Reduction-. , „ . 195000 ,5 _. 186000- 5 195,000 ,.5 195000 5 -. 195,000 . 5 195,000 -5 -- 195,000 5 .. . Total Non Operate Exp 1 1185;000 1 39 .1 1169,4001 33 1 1,153,800 1 31 1 1138,200.1 29 l' 1,122,800 I 27.• • 1;107,000 1.28 1,091,400 1 26 • -1 I I! ' . I. -. I . 1. I I I- IL .. I I Net Income.Protit/Loss ..',... .. ..•I . .(478;423)1-(15)1 (361;964)1(.1 0)1 (295,462)1 (8)1 (253,144)1„(6)1. (189;251)1 .(5) (130,850)1 (3)-1 (96.459)1 (2) Add.:.Tax Abatement Recovery.7% 175;467 6 201283 . 6 , -211;585 6 218,912 6 226,363 :6 • , 231,790, ..:6 235,101 _5__ Less Debt Dedectroin"_. __•_ 0 .-.-0--. ' ., 0 0 . O. 0, 0 0 '•,` • 0 .0 _ 0 0_ O. 0_ .. . . . . . ,, Net Dash AVallable 'I (302.956)1(10))'-(150.671)1 (4)1 (83.667)1 (2)1; (34.231)1 (1)1 37,1121 1 I 100,940 1 2 1 .. 138,641 3 •I - I '' . ; I I I I . ' . i . . Gaet a!Sales 230,250, 8 . 269,600 8 314,950 8. ,342,300 • 9 :363.850 . 9 371,600 0 376,350 9. Total Payroll 868,951. 29 973.535 28._ 1.041,225 -28 1,088;518 28. .1131.176• 20 _ 1154,530. .27 1.177.745 28 Operating Exp 850,482 28 , 987,680 ,27 1.023,883 27 1.062,690 .27 1.111;342. 27 1-.130,386 27 1.156.569 .27 N.B.:Berreiving liSS.9,0001390.og el3,00%p.a. -I : _ ._,... :- .., , _ . ._ .._'• ._____. .2:., ....., N.B.:13orroaring-Ua 3,000,000:60 @,7:00%p.a. 'I --,- - --i: -:: - T -....--.-- "; -;---- --. TT - : ., ......., „. . ` Hilton Garden Inn Shadow Creek 5:01 PM US $$ ° Income Statement Forecast,Yr:2008'to 2015 Statistical Key Information i i i ' I i Yr:2006 % Yr 2009 % . Yr 2010 % Yr 2011 % 'Yr 2012 % Yr2013 Yr 2014. . % Yr 2015 % Number of Rooms _'" 137 137 _ 137 137_ 137 137 137 . ,_,• 137 _", Number of:Days __ `365 _ 365 365_ 365 365. 365 365^ 386 Rooms Available 50,005 _ 50,005 50,005. 50,005 50,006 50,005 60,005 50,005 Rooms Sold 27,503 -29,603 . .30,503. 31,003. 31,503 .32,503 33,003. 33,603._ , Guest'InHouse. 35.204 37;784 39,044. 39,684:: 40,324 . 41,604 42,244 42;884 Occupancy Percentage_ 55.00% ,59.00%•-_ 61.00%` 62.00%_; 63.00% ..65.00% 66.00%; 67.00%___ Average Room Rate - 97,00:__ 99.00 99.00 . 103.00 -_;106.00 107.0D , .•,107.00. 110;00 RovPAR 53.35' 58.41 . 60.39 ~ 63.86.. 66.15 ...69.56 70.62 73.70. Revenue Yr;2008" % Yr 2009. % Yr 2010 % Yr 2011 % Yr 2012 %. Yr2013 Yr 2014 % Yr 2016 Rooms 2,667,767 .83 2,920,792. .82 3.019,802 80 ,3,193.319 •80 3,307;831 79 _ 3,477,848 80 3,531,353 79. 3.685,369 109 Food _ .:325,000- 10 _ :385,000 11 445,000, 12 480,000 12 530,000 13 _ 550,00D 13: 560,000 .13 570,000 17 Bevera a 75,000 2 90.000 3 105,000 3 120,000 3 130,000 " 3. 135,000 '3 140,000 3. 145,000 4 _ - - Meeting Rooms/Conference 90,000 3 _ 120,000 3 140,000 4 150,000 4 160,000 4 150,000 .3 150,000 .`3 150.000 4 Telephone&Telex 16,000- 0 16.000 0 16,000 0. 16,000 .0 . 16,000' . 0 - 16,000 0 16,000 0 16,000 0 Others 36.000 .`1 38;000 1 40,000 1 ' 42,000 1. 45,000 '1 45,000 1. 45,000 1 45,000. 1 Total Revenue 3,209,767 100. 3,659,792.i 100 3,765,802 100 4,001,319 100 4,178,831. 100_ 4,373,848 100 4,442,363 100 4,611,369 136 Rooms 531 353 0 " Room Revenue 2,667,767 100' 2,920,792 100 3,019,802. 100. 3.193,319 .100 3,307,831 100: 3,477,848 100' 3,531,353 100 ' 3,685,369 130 Direct Wages 428,843. 16 467,327•..16; 483,188 16 510,931 16 ; 529,253 16. 556,456 16 565;016 16 589,659 21 Direct Exp 137,390 5 150,421 6 155.520 5 164,456 5 170,353 5 189,796 Net Room Profit!Loss 2,103,534 79 " "2.303,046. 79 2,351.114,..79. 2,517.932 79 2,608,225 .79 . 2,742,283 79 2.784,472 79. -2.905,913 102 Food Food Revenue 325,000. 100 385,000. 100 445,000 100 480,000 100' 530,000 100 550,000 100 560,000 '100 570,000 .176 Cost Of Sales 107,250 33 127,050 33 146,850 33 :. 158,400 33 174,900 33 181,500 33 184.800 33 188,100 58-- DlrectWages 162,500 50 192,500. "50 222,500 50 240,000 .50 265,000 60 275,000 50 280,000. 60 285,000 .88'" Direct Exp 26.000 8. 25.218 7 .29,148. 7 31,440. 7 .. . -.34,715 7 36,025 7" `36,680_ 7 43,035 13 , Net Food Profit I Loss 29.260 9 40,233 10 46,503 •10. 50,160 10 . 55,385 10 ! 57.475 10 58,520 10 63.1165 17 Beverage _ - - Beverage Revenue - 75,000. 100. 90,000 100 105,000 100 120,000 100 '130,000 100, - 135,000 100 140,000 100 145,000 193"_ Cost Of Sales .23250 .31 : 27.900 31 32,550 31: 37,200 31 . 40,300 31 41,850 '31 43.400 .31 44,950 80 Net Bev Profit I Loss 61,750 69 62,100. 69 72,450 69 82,800 69 89.700_69 93,150 `89 • 96,600 89 100,050 133 Net.Food:&Bev Profit Moss 81,000 .20 102,333 '22• 118,953: 22, 132,960 22. 145.085' 22 150.625 ,-'22. 166,120 -22` 153,916 22 Meeting Room - Meeling Room'Revenue. 90,000 100 120,000 100 _'140,000. 100 150,000 100 ..150,000, 100 _150,000 100 150,000 100- 150,000 '167 Cost.of,Sales .36.000 40. 48.000 40 56,000 40: 60,000 40: 60,000 40 -- 60,000 '40. 60,000 '40 60,000 67-- Net Meeting Room Profit!Loss 54.000 "60; 72,000 60 84,000, 60 90.000. :60 90,000 60 90,000 -;60. 90.000 60" 90,000, 100. Telephone:&Telex - __._ - •- 16;000 100 18,000 100 16,000. 100: 16,000 100 16,000 100; 16,000 100 16,000 100 :_ 16,000 100. Telephone Revenue_ __ - - Cost.OfSales 14,000 88, 14,000 .B8; 14,000• 88 14.000' 88- 14,000 '.88 . 14,000 88 14,000 88 " 14.000 88. Net TTX•Profit/Loss ' 2,000 13: 2,000 13 2,000 13 2,000. 13 2,000 '13. 2,000 13 2,000 13 _ 2,000 13Others , Other.Revenue, 38.000 100 38.000. 100 40,000 100 42,000 100 45,000 100, 45,000 100. _.45,000 100 ---45,000 _ '126 Cost Of Sales "--- '27,000 75 28 500 75 - 30,000; :75 31,500 ,'75. 33,750 75 33,760 75. 33,760 75 33,750 .94 Net.Profit Others 9,000 26 9.500 25' 10.000a 25 10,600 25 11,250 25 . 11,260 25 11,260 25 11,250 31 2porating Income -- _ _._-•. -•"- - -- Rohm �•�2 1D3 534: 66_ 2,303.045 65 _2,381,114 63 2,517932. 63" 2,608,225 62. ;2,742,283 _63 2,784 472 _63 2,906 913 86 ;_ 132,960 ,3 145;085 :3 150,625 3- 155120 •3 __153 915 5 Feud&Bev.," �_-•-_ _.; 81,000 .2 172.000 3 54 000 3. -••- Meeting Room-_ •- _ 54.000 2 72.000 2 04 000 2 .90,000 2 -_90,000 2 90,000 2_, M.90 000 _2, . .90 g00 3 Telephone•&Telex 2:000 0 2,000 :0 2,000 0 : .. 2.000_ 0 2 000 0 2,000 ..0 2 000 0 ,• 2;000_ "0 --'- -. '. .10,000• 0 10,500 0 - •11 250 0 11,250 0 11,250: 0 . 11,250 0 Others- 9,OOD :0 9,500 :0 Total Operating income I ,2,249.534.1 70. I .2,488,877 I 70 I 2,596,066 69 "2,753,392 69 2,856.560 68 2,996,158 `69 3,042,842 68 3,163,078. 93 . . - • Hilton Garden Irin Shadow Creek 501 PM.US $S .f Income Statement Forecast'Yr 20013 to2015 ' . . Yr.2008: % Yr 2009 Yo• Yr 2010 .%. Yr 2011. % Yr 2012 . .% Yr 2013; , % .•Yr 2014 •.% Yr 2015 %. OVerhoad Dept Exp, • AdreinIstratIon 200,488. 9 318,490' '9 '328,290 9 360,066 9. 3613,942 9 • 388,892 9 402,118 9 420.66E3 12. Payroli&Benefits . 120;000 4 120,000- 3 120,000 -3. 130,000 .3 . 140,000 3 . . 150,000.. 3 160,000 ..4 170,000 5. ' Service Eicp 5% 160,488 5 178,490, .5 188,290 .3 -200,066. .5-, 208,842 5 218,692. -1 222,118 .5- 230,568 - 7 --- 11Rp , ... , , , 20,000. 1 20.000 1 • 20,000 1' 20,000. 0 '_... 20,000 0 , 20,000 '0 • 20.000_ 0 20,000 5a1e8&Marketing . 234,536 '7 252,793 7 268.946 7 267,839 7 .. 274.095 7 . 282,183 6 284.853 .6• 287,047 8 Payroll&Benefits ,, , . 75.000 2 80,000 2 80,000 2' 80.000 2 .80,000 :2 80,000 '2_ .80,000 a _ 76,000 2, Service Exp ' 56171, -2 62.471 •2 -65.902 2 , 70,023 2 73,130 2 .76 542 2. '77741 .2, - .80,5013 2 Catering.Cordlnetor7-- . . ,30,000. 1 . . 30,000 -1 30,000-- ..'- 30,000 1. - 20,000 1 . . .30,000 1 ---, .30,000 1 ---307000 1 -- Hilton HOnor_11210 • 73.384 2 80,322 2 . 83,045 2 . 87,816 2 - . 90,965 2 :95,641 2 .97,112 Ti 101,348 3 " Repairs&Maintenance 134.195 4 151,398 4 155.316 4. • 160,026 -.4 168,677 .4 .172,477 4 ." 173,847 4 162,227 5 Payroll&Benefits 70.000 2 .80,000 :2 .80;000 2 80,000 • 2 85,000 2 86000 2 : . 86,000 2 '70;000 2 Service Exp .._. __. 64,195 2 71,396 2 75.316 2 80,026 2 83;577 2_ ;87,477 2 .88847 2 92.227 3 _ . Heat,Light&Power 224;684 7 214,188 :6 225948 6 240,079 .6 . - 260730 6 262,431 8 • 266.541 6 276,682 8 Franchise&Royalty Fees 253,171 8 .277,183: .8 286.579 8 303,046. 8 313,913 8 330,048 8 336125 8 349.741 .8 Total Overhead Exp . 1,147.073 36 1.214.049 34. 1,256.080 33 1.321,067 33 . 1,376,256 33' 1,435.831 33 1;462;485 33 1,496,266 44 f • . Gross Profit or Loss . I 1,102,461 1 34 1 1.274.8213136 1 1.340.9871 36 1 1432,336 1 36 1 1,480,304 1 35 L 1.560.327 1 36 1 1,580367 1 36 11,686,812 1 49 Other Non Operating Exp Management Fees, 160,488 5 178;490 ..5 . 1,88,290 5,. ..2.0.0.066 5 208,942. .5 218,692. 5. • 222,118 5. '230.568 7 insurance 60.000 . 2. 60.000 '2. '60,000 2 60,000 1 .60,000 1 60,000 1 60;000 1 60,000 2 Replacement ReservefFillton 80,000 2 ' 80000. 2 -80000 2„ . 100.000- 2 . .100,000 .2 100,000 2 .110,000 2 200,000 6 . Property Tax . _ 140,000 •4 140,000 .4 140,000 .4 . 140,000 3 .140,000 3. -. 140.000 3 140.000: 3 140;000 ,A , - Total Other Nen OneratMg Exp." 440,488 14 , 468,496, 13 468;290. 12 500,086. 12 508,942' 12 '5113;692. 12 :532,118. 12•• 630;568 19 . . .. . , . Net Operating Profit .1 661,973 1.21 r , 816;338 1 23 1 , 872,697 123.1. '932,269 1 23 1 1371,3621 23 1 1,041:634 24 1,048,240.124. 1 1,036,2A4 1 31 -- . Owner's Debt Services : - Baris InteresUDebt Reduction . 1,020,000 •32... 1,002A00 28. . .984,800, 25, :987 200 24 _ 949,600' 23 .932,000 21 .914;400 21 ,896;800 26 Leases , 80.000 2. 80,000 2, • 80,000 2 80,000 2 80,000 2 80,000 2' 80,000. • 2 ._ . 80,000 2 Total Non Operate Exp • . .1 1.100.000 1.34 1 1,082,400 L30 1 '1,064,800.1 28 1 1.047,200 1 26 [ 1,029.600] 25"1..1,012.000 1 23. 1 994,400.122- 1 976,800 1 29 1 1 '1 ' 1 I . I 1 " 1 1 . 1 1 ' II I. I .. Net Income Profit/Loss YTD. 1 "(4313.027)1(14) (266.082) .17)1 (192.103)1 (5)1 (1.14931)1_(3).1 (513,238)1 (1) 1 29,634.1 1 1 53,840-1 1 .1 59,444 2 ... Add 014A-ohiti orlii*dif*Olikz, '133;388 4' 146,040 .4 - 150,990 4. ...l 159 1. 666• 4, '166 1 392.-4 ' 173;892 ,A .... .1765138 4 184.2613 4 Net Income/(Loss) , . . 1 1304.639)1 (9)1 (120.022)1•.(3):1 (41 113)1 (1),1 44735 1 4. 107,154.1 3 1 .203;527 1 5 1 230407.1 .6 1 243,712,1 5 Cumulative Gain/(Less). „...___....•(304.6391. . (424.661) - 1466J1_11 (421;039) (313,865) - (11058).. . .. 120,049 363,761 ---- Deft of Sales 207,500 6 245.450 .:_7..._' . 270400 _7 -301,180 8 •322,950 8 - 331100 8 '335,950 '8 " 340.800 . .10 Total Payroll 854,343 27 039,827 28' 986468 26 1,040,931 :26 1,099,253 26 1,146.456 :26 1,170,016 :26-• 1,189,659 35 Operating Elm .1.015.463' 32 1,079,688 30 , 029.747 30. 1,196953 30 1;246,324 '30 1.306.985 :30 . 1,326,029 30 1,304.097 •41 I- .I I . . i f t „ . . • • . . J a i . . , . Exhibit"A" Resolution 2007-81 CITY OF PEARLAND STANDARD AMENDMENT TO HOTEL OCCUPANCY TAX REIMBURSEMENT AGREEMENT This Amendment (hereinafter "Amendment") is made between the City of Pearland, Texas (hereinafter "City"), and Shadow Creek Hilton Garden Inn, LLC (hereinafter"Developer") to amend that contract (the "Contract") between the City and the Developer executed on October 11, 2005. 1. Amended Terms. The City and the Developer hereby agree that the Contract is amended as follows: A. First WHEREAS clause. Developer plans to construct a Shadow Creek Hilton Garden Inn or equivalent ("the Improvements") consisting of 130 rooms, full food and beverage facility and an 11,000 sq. ft. conference center in the SH 288/Shadow Creek Ranch vicinity. B. Section 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 October 1, 2008 (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. C. Section 2. Pursuant to its authority under Chapter 30. TEX LOCAL GOV'T Code, as amended, the City agrees, to reimburse Developer seventy one percent (71%) of the Hotel Occupancy Tax Revenues generated by the Improvements and collected by the City for a period of ten (10) years from the date of issuance of Certificate of Occupancy for the Improvements, but in no event shall the amount reimbursed to Developer exceed $1.84 million dollars. 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. D. Exhibit A. 1. Hilton Garden Inn or equivalent 2. Minimum of 130 rooms 3. Full service food and beverage facility 4. Eleven Thousand square foot (11,000 sq. ft.) conference center 5. All facilities constructed in accordance with City of Pearland rules and regulations 2. Contract to Remain in Force. Other than the provisions of the Contract expressly amended herein, the Contract shall remain in full force and its enforceability shall be unaffected by this Amendment. EXECUTED and EFFECTIVE as of the day of 2007. ATTEST: CITY OF PEARLAND By: ung rfing ill Eisen ity S retary City Manager PEARLAND CAPITAL GROUP LP By: William F. Harmeyer, Manager of its General Partner Shadow Creek Investment Group LLC, dba Shadow Creek Hilton Garden 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 /lip- 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. 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. R2005-163 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 dZp �/'� By: efifin g ��/ / Biln y Se-retary City Manager SHADOW CREEK HILTON GARDEN INN, LLC By: By: (A)u-- lam Printed Name: eAt`iau- oteic� Title: .44t.,, STATE OF TEXAS § COUNTY OF 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 , A.D., 2005. `�pY cu, PERLA N. LEHMAN f NOTARY PUBLIC IN AND FOR THE r I Notary Public,state of Texes j STATE OF TEXAS My Commission Expires r ' c. APRIL 22,2009 f Printed Name:�-�✓/� �/ 1� My Commission Expires: /O' -/i-o-s' STATE OF TEXAS § COUNTY OF HARRIS § B`EFO F ME, the undersigned Notary Public, on this day personally appeared c n1eLp_ , 7111c.wCc.v.7C. - of Shadow Creek Hilton Garden Inn, LLC., a Texas limited partnership, knov'h 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 _3o -' DAY OF ,c�.ct1Ci.G , A.D.,-2 05. CCO( - NOTARY PUBLIC IN AND FOR THE STATE OF TEXAS r xo` p Linda M.Shaw r�1 ; j' MY Commission Expires Printed Name: is l rl d 1. IV1 �j I1 QL1� 12/2112008 My Commission Expires: &/2//dOO& 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.O1272294.3 RROSE