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HomeMy WebLinkAboutItem 11 - Water Supply AgreementITEM 11 // MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER/W MEETING DATE: SEPTEMBER 2, 2003 SUBJECT: TERMINATION OF WATER SUPPLY AGREEMENT RECOMMENDATION: City Council consider approving the termination of the Water Supply Agreement between Opryland Hotel — Texas Limited partnership and the City of Grapevine, authorize the City Staff to execute said agreement termination, and take any necessary action. BACKGROUND: The original Water Supply Agreement to provide irrigation water for a prospective golf course associated with the Opryland Hotel Complex was approved by the City Council on May 16, 2000. Since that time, Opryland has concluded that a golf course is not in their plans and that they no longer intend to sublease the Corps land designated for the golf course. With this revised plan of action, Opryland has concluded that there is no purpose for this supply agreement to remain in effect and has requested that the agreement be terminated. The attached document serves the purpose of terminating the original agreement. Staff has no objection to the request and the City Attorney has approved the form of the document. Staff recommends approval. 0:\agenda\9-02-03\Water Supply Agreement Termination August 22, 2003 (3:30PM) 0 TERMINATION OF WATER SUPPLY AGREEMENT WHEREAS, the City of Grapevine ("City") and Oryland Hotel -Texas Limited Partnership ("Opryland") previously executed a Water Supply Agreement dated May 16, 2000 (the "Agreement'); and WHEREAS, Opryland has determined not to proceed with the sublease of land from the City for the purpose of constructing a golf course (referred to in the Agreement as the Sublease Agreement); and WHEREAS, in the absence of the Sublease Agreement, there is no continuing purpose served by the Agreement; and WHEREAS, the Agreement has not been acted upon; and WHEREAS, the parties to the Agreement now mutually desire to terminate the Agreement. NOW THEREFORE, the City of Grapevine, Texas and Opryland Hotel -Texas Limited Partnership, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, do hereby agree as that the Agreement is hereby terminated and each of the City and Opryland are fully and unconditionally released from all obligations thereunder. Executed this day of .2003. CITY OF GRAPEVINE, TEXAS By: William D. Tate ATTEST: Its: Mayor By: Linda Huff Its: City Secretary APPROVED AS TO FORM: John F. Boyle, Jr. Its: City Attorney By: OpLIanpd Hospitality, LLC Its: Gen er By: nwvi A- - - a.;L Its: E%trufivc-Vice President