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Consider/Discuss/Act on Approving a Hotel and Event Center Development Agreement and Hotel Ground Lease Agreement
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MEETING DATE: November 6, 2012
DEPARTMENT: McKinney Community Development Corporation
CONTACT: Cindy Schneible
RECOMMENDED BOARD ACTION:
· Approve Agreements
ITEM SUMMARY:
· Hotel and Event Center Development Agreement
o This document outlines the method and means by which the public incentive is offered. This includes the 100% Ad Valorem tax abatement for 10 years, outlines our efforts to share the state hotel taxes, and outlines provisions of default and cure.
· Hotel Ground Lease Agreement
o This document is intended to cover the nature of the relationship after the hotel opens and is operating. It includes things like the terms of the lease of the Hotel ground, the allowable uses, rent to be paid, franchise requirements, who is responsible for what during the term of the lease, and defines how the City will be allowed a 50% return of the net proceeds upon sale of the property.
BACKGROUND INFORMATION: N/A
FINANCIAL SUMMARY: N/A