Item Coversheet

CITY COUNCIL AGENDA COMMUNICATION
AGENDA DATE:February 12, 2019
SUBJECT:
Authorize the City Manager to Execute a Fourth Amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP to Amend the Commencement Date to Coincide with the Actual Opening Date of the Hotel and Convention Center.
STAFF RESOURCE:
Peter H. Vargas, Interim City Manager
Dan Bowman, Executive Director of Economic Development
PREVIOUS COUNCIL ACTION:

On April 14, 2015, City Council authorized the execution of an Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP.

 

On November 10, 2015, City Council authorized the execution of the First Amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP.

 

On April 26, 2016 City Council authorized the execution of the Second Amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP and approved additional funding for the Hotel and Convention Center Project.

 

On January 10, 2017 City Council authorized the execution of the Third Amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP to amend the timing of infrastructure grant payments and the date to commence construction.

ACTION PROPOSED:
Authorize the City Manager to Execute a Fourth Amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP to Amend the Commencement Date to Coincide with the Actual Opening Date of the Hotel and Convention Center.



BACKGROUND

This Fourth Amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP incorporates one change to the definition of "Commencement Date" in Article III of the original agreement.

 

The original agreement defines "Commencement Date" as the date the first final permanent certificate of occupancy (CO) is issued by the City. The permanent CO for this facility was issued by the City on December 20, 2018. Altera has requested, and City staff has agreed to change the definition of "Commencement Date" to January 1, 2019. This change of 12 days aligns the future payment of "Rent" in the form of Hotel Occupancy Tax with Altera's fiscal year and with the calendar year for ease of reporting and accounting.  


BUDGETARY IMPACT



STAFF RECOMMENDATION

Authorize the City Manager to execute a fourth amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP to amend the commencement date to coincide with the actual opening date of the hotel and convention center.


MOTION

I made a motion to authorize the City Manager to execute a fourth amendment to the Economic Development Incentive Agreement and Civic Center Agreement with TCH Altera AHCC, LP to amend the commencement date to coincide with the actual opening date of the hotel and convention center.


ATTACHMENTS:
Description
Fourth Amendment to Economic Development Incentive Agreement