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HomeMy WebLinkAboutRES 02-275 RESOLUTION NO. 02-275 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute an agreement with Community Development Properties Beaumont, Inc. The agreement is substantially in the form attached hereto as Exhibit "A". PASSED BY THE CITY COUNCIL of the City of Beaumont this the 12th day of November, 2002. -- J - Mayor velyn M. Lord - STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This agreement between the City of Beaumont, a municipal corporation, herein called "City", and the Community Development Properties Beaumont, Inc., a nonprofit corporation of the State of Texas, herein called "CDPB", is as follows: WITNESSETH: WHEREAS,V.T.C.A.,Tax Code Section 351.001 et.seq.,authorizes the City to levy by ordinance, a hotel tax which may not exceed seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, V.T.C.A. Tax Code Section 351.101 (a)(5), authorizes the City to use a portion of the revenues derived from its hotel occupancy tax "for historical restoration and preservation projects or activities or advertising and conducting solicitation and promotional programs to encourage tourists and convention delegates to visit preserved historic sites at or in the immediate vicinity of convention center facilities or located elsewhere in the municipality or its vicinity that would be frequented by tourists; and, for projects that directly enhance and promote tourism and convention activities. WHEREAS, under the authority of V.T.C.A. Tax Code Section 351.101(a)(5), the City desires to provide financial assistance to CDPB for historical restoration and preservation of the Rose Room and Sky Room and the renovation of the historic public areas of the Hotel Beaumont; GACGWGREEMEMCDPB-11-02.wpd EXHIBIT "A" NOW, THEREFORE, the City and CDPB agree as follows: 1. City agrees to pay to CDPB the amount of Forty Thousand Dollars($40,000). All revenues from said hotel occupancy tax are subject to pledge by City to secure the payment of principal and interest on bonds to be issued by the City, and any payments provided for herein are subordinate and subject to any such pledge. Anyfunds not expended by CDPB will be retained by CDPB to be reallocated for similar purposes by approval of City. 2. All expenditure of funds shall be reasonably related to the purposes established by V.T.C.A. Tax Code Section 351.101(a)(5). 3. The CDPB is an independent contractor and is not an officer, agent or employee of the City. 4. The CDPB shall periodically submit financial reports to the City reflecting all receipts and disbursements by CDPB. The CDPB shall submit such reports quarterly commencing January 20, 2003. 5. The City Manager of City or his designated representative shall, upon reasonable notice, have the right to inspect all books and records of the CDPB. 6. Upon termination of this agreement or any extension thereof, unless it be renewed, the CDPB shall deliver to the City all unexpended funds paid under this contract. 7. Funding under this contract may require that a representative of CDPB attend a seminar designed to assure that expenditures of hotel Occupancy Tax funds are made in compliance with the Act. Attached as an appendix is a briefing paper that outlines GAMAGREEMENIMPB-11-02.wpd 2 of 4 methods that will be employed to provide necessary information to assure that funding under this contract complies with state law. 8. CDPB agrees to indemnify, save harmless, and defend the City of Beaumont from any and all claims, causes of action and damages of every kind arising from the operations of CDPB , its officers, agents and employees, including the officers, agents, and employees involved in CDPB operation and specifically including herein any and all acts of negligence by the City of Beaumont, its agents, officers or employees, carried out under the terms of this agreement. 9. The funds provided hereunder will be used to renovate areas of the Hotel Beaumont which CDPB as a nonprofit corporation will make available to the public in a nondiscriminatory way. CDPB agrees not to either sell or transfer control of the areas funded for renovation by this agreement. CDPB agrees that such renovated areas shall remain under control of CDPB until December 31, 2021. Should CDPB not retain exclusive control of such renovated areas until December 31, 2021, or not allow public access under reasonable nondiscriminatory rules, CDPB will immediately repay to City all funds provided to CDPB under this contract. G:1CGIAGREEMEN\CDPB-11-02.wpd 3 of 4 EXECUTED this the day of 2002. CITY OF BEAUMONT By: Kyle Hayes City Manager ATTEST: By: City Clerk COMMUNITY DEVELOPMENT PROPERTIES BEAUMONT, INC. By: President ATTEST: By: GACG%GREEMEMCDPB-11-02.wpd 4 of 4