HomeMy WebLinkAboutItem 18 - Gaylord Convention Development and Marketing AgreementMEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
,0
FROM: BRUNO RUMBELOW, CITY MANAGER
MEETING DATE: NOVEMBER 20, 2012
SUBJECT: GAYLORD CONVENTION DEVELOPMENT AND MARKETING
AGREEMENT - CONSTRUCTION COMMENCEMENT DATE
EXTENSION
RECOMMENDATION:
City Council consider authorizing the extension of the Construction Commencement
Date in the Convention Development and Marketing Agreement for a period of 18
months from March 12, 2013, authorize the City Manager to execute the necessary
documents for this extension, and take any necessary action.
BACKGROUND:
Gaylord submitted a request this past summer for a 24 month extension to the
Construction Commencement Date in the Convention Development and Marketing
Agreement from September 12, 2012 to September 12, 2014.
City Council chose to grant a six -month extension with the provision for an additional 18
month extension after meeting with the Marriott management staff. That meeting has
taken place resulting in a positive feel for the future management of the facility by
Marriott.
This 18 month request will complete the total 24 month extension that was desired by
Gaylord with an expiration date of September 12, 2014.
Staff recommends approval.
G .YLCR!) ENIF -aTaANME, T
Bennett Westbrook. Senior i ire Yrerideur, Derdoprnenr, Desinn &
Cousirarrion
November 12, 2012
Mr. Bruno Rumbelow
City Manager
City of Grapevine
200 South Main Street
Grapevine, TX 76051
Dear Bruno,
What a pleasure it was to host the city leaders along with Marriott's senior executives at a.
reception at the Gaylord Texan. It was great to get everyone together to renew old ties
and begin to build new relationships.
I'd like to take this opportunity to formally request that the City of Grapevine extend the
Gaylord Texan's expansion incentive and option to lease the Western Amenity Parcel.
We are requesting that the City permit an 18 -month extension to the existing deadline
applicable to the Convention Development and Marketing Agreement. With this
extension, the new deadline would be September 12, 2014.
Our justification for seeking the extension stems both from the slower -than- expected
economic recovery and the current uncertainty in the global political and economic
climate. Additionally, we would like for Marriott to have a period of time as manager of
the business in order for us to gauge and reconfirm the feasibility of the major facility
expansion under their management.
I look forward to discussing this request with you further. Thank you for your
consideration.
rely,
ennett Westbrook
Gaylord Entertainment Company
Onc Gaylord Drivc, Nashville,TN 37214
relephonc 615 - 316 -6436 Facsimile 6:5 -316 -6557
Email: b-.vestbrook(dpa) lordenterraitnnent.com
FIFTH ADDENDUM TO CONVENTION DEVELOPMENT
AND MARKETING AGREEMENT
This Fifth Addendum to Convention Development and Marketing Agreement (the
"Fourth Addendum ") is entered into by and between the City of Grapevine, Texas (the
"City "), and Opryland Hotel — Texas Limited Partnership, a Delaware limited partnership
( "Gaylord "), on this 20th day of November, 2012.
RECITALS:
A. The City and Gaylord have entered into that certain Convention
Development and Marketing Agreement, dated March 24, 1999 (the "Original
Agreement "), which was amended by an Addendum to Convention Development and
Marketing Agreement, the Second Addendum to Convention Development and
Marketing Agreement, dated September 12, 2007 (the "Second Addendum "), the Third
Addendum to Convention Development and Marketing Agreement, dated June 3, 2009
(the "Third Addendum "), the Fourth Addendum to Convention Development and
Marketing Agreement, dated September 28, 2012 (the "Fourth Addendum "), (the
Original Agreement, as amended. is referred to herein as the "Subject Agreement ");
B. The parties desire to amend the Subject Agreement as set forth herein;
C. This Fifth Addendum and the incentives provided for herein are
authorized by, and in accordance with, the City's Policy on Economic Development and
Chapter 380 of the Texas Local Government Code; and
D. All legal prerequisites for the approval and execution of this Fifth
Addendum have been met, including but not limited to the requirements of the Texas
Open Meetings Act and the City Charter;
NOW, THEREFORE, in consideration of $10.00, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged and
confessed, the parties do hereby agree as follows:
1. The first sentence of Section 4 of the Fourth Addendum is deleted and is
replaced by the following sentence:
"In order for Gaylord to obtain the benefit of the revised definition of
"Available CVB Funds" (as set forth in Section 2 of the Second Addendum),
Gaylord must commence construction on both the new hotel building and
convention center expansion by September 12, 2014."
2. That Section 10 of the Fourth Addendum is hereby amended to provide
that Gaylord shall have until the earlier of (i) September 12, 2014, or (ii) the
commencement of construction of the new hotel building or convention center expansion,
to lease the Western Amenity Parcel and commence paying rent thereon.
Page 1
3. All provisions of the Subject Agreement not specifically amended herein
shall remain in full force and effect and are hereby confirmed, ratified and approved_
Capitalized terms which are not defined herein shall have the same meaning as set forth
in the Subject Agreement.
THE CITY OF GRAPEVINE, TEXAS
Bruno Rumbelow, City Manager
OPRYLAND HOTEL — TEXAS
LIMITED PARTNERSHIP
By. Opryland Hospitality, LLC,
General Partner
By:.........
Name:
Title:
O:ISTANIGAYEARDIHotel Expansion\City- Gaylord Documentsl4th Amendment Convention & Marketing Agmt 9- 12- 12.doc
Page 2