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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