Item 4G Memo
M E M O R A N D U M
June 14, 2018
To: Shana Yelverton, City Manager
From: Daniel Cortez, Deputy Director of Economic Development
Subject: Item 4G: Approve Resolution No. 18-031, adopting an
amended and restated 380 Agreement between the City of
Southlake and SRH Hospitality Southlake Investments, LLC,
a Texas Limited Liability Corporation
Action
Requested: Approval of Resolution No. 18-031 as presented.
Background
Information: On June 21, 2016 the City of Southlake entered into an
Amended and Restated 380 Agreement with SRH Hospitality
Southlake Investments, LLC through Resolution No. 16-029.
As part of that 380 Agreement, a number of performance
based provisions were established in order to ensure that
the project is moving forward in a timely manner and that the
project is performing at certain thresholds.
One such performance requirement listed under Section
5(B) of the 380 Agreement (see Exhibit A) was for SRH
Hospitality to complete construction of the project and obtain
a Certificate of Occupancy by no later than June 30, 2019.
Due to internal delays with the development of the project,
SRH Hospitality is requesting City Council consider revising
the requirement related to the issuance of the Certificate of
Occupancy from June 30, 2019 to June 30, 2021.
Strategic Link: C4 - Attract & keep top-tier businesses to drive a dynamic &
sustainable economic environment
Citizen Input/
Board Review: N/A
Financial
Considerations: There are no changes being requested or have resulted from
the proposed change to the Certificate of Occupancy date.
The $5.4 million economic incentive to develop the hotel will
remain with no changes. The incentive would be paid back
over a period of up to 12 years from their self -generated Ad
Valorem tax, General Fund sales tax, Hotel Occupancy Tax
and construction materials sales tax as outlined in Exhibit A.
Legal Review: The proposed agreement was reviewed by the City Attorney.
Alternatives: Approve Resolution No. 18-031, granting the revised
Certificate of Occupancy due date to June 30, 2021 with
specific revisions or direct staff to revise the agreement and
return for City Council consideration at a future date.
Supporting
Documents: Resolution No. 18-031
Exhibit A : Amended and Restated 380 Agreement