Press Alt + R to read the document text or Alt + P to download or print.
This document contains no pages.
HomeMy WebLinkAboutR2007-081 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