HomeMy WebLinkAbout027459 RES - 10/23/2007Page l of
A RESOLUTION
AUTHORIZING THE EXECUTION F AN AGREEMENT WITH
NUECES HOTEL HOLDINGS, L.P. (RED ROOF INN) PROVIDING
FOR TEMPORARY PROPERTY TAX ABATEMENT
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. That an agreement ent with Nue es Hotel Holdings, L.P. (Red Roof
Inn) providing for temporary property tax abatement attached hereto is approved.
ATTEST:
CITY F ORPUS CHRISTI
ANIF-41 A Aire dAf
Armando Ch pa H + my Garratt
City Secretary Mayor
APPROVED E AS TO FORM: M October 17, 2007
Ga Smith
Assistant City Attorney
For the City Attorney
Ci:,' 4 5 9
H:ILEG-DI \ hared\ ary l gerlda\200 \10-23\Res-AuthAgmtTaxAbatement-Nueeee Hotel -Red oefInn.dee
Corpus Christi, Texas
g of eat _
2007
The above resolution was passed by the following vote:
Henry Garrett
Melody Cooper
Larry Elizondo, Sr.
Mike H r r el
Bill Kelly
Priscilla G. Leal
John E. Marez
Nelda Martinez
Michael McCutchon
4
9
Page2of2
H:\LEG-DIR hared\ ary laganda12007110- 11 e-AuthAgm'ntTaxAb t r nt-Nue a Hotel -F dRooflnn.do
TAX ABATEMENT AGREM I T
THE STATE OF TEXAS
*
COUNTY OF NU C S
This Tax Abatement Agreement (hereinafter referred to as the `Agreement") is made and
entered into by and between the CITY OF CORPUS CHRLISTI, TEXAS (the 'Governmental
Unit') and Nueces Hotel Holdings, L.P., a Texas limited partnership (the 'Owner'), the owner of
taxable property in the City of Corpus Christi, Texas, 3030 Buffalo Street, Lot 17B, Forest Park
Addition 2, Corpus Christi, Nueces County, Texas (the "Property').
1. AUTHORIZATION
This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement
Act, Texas Tax Code, Chapter 312, as amended (the 'Act'), and is subject to the laws of the State
of Texas and the charter, ordinances, and orders of the Governmental Unit,
IL DEFINITIONS
As used in this Agreement, the following terms shall have the meanings set forth below:
A. 'Base Year Value' means the assessed value of the Improvements on the Property as
certified by the Nueces County Appraisal District as of the January 1 preceding the
execution of this Agreement plus the agreed upon value of Improvements made after
January 1 but before the execution of this Agreement.
B. 'Improvements" means the buildings or portions thereof and other improvements,
including fixed machinery and equipment, used for commercial or industrial purposes
on the Property.
C. `Construction Phase" means the period during which a material and substantial
improvement of the Property occurs which represents a separate and distinct
construction operation undertaken for the purpose of erecting the Improvements. The
Construction Phase ends upon the earliest to occur of the following events:
(1) when a certificate of occupancy is issued for the project if within City limits); or
when commercial production ofa product or provision of a service is achieved at
the facility, or
(3)
when the architect or engineer supervising construction issues a certificate of
substantial completion, or some similar instrument, or
H:1LE-DIRIShared\ aryS\Eeonomio Development\Tax abatement agreerr entRedRoofinn O710I renew comm.doc
Page 1 of 13
two (2) years after the date of this Agreement.
The determination of the end of the Construction Phase shall be made by the
Governmental Unit, in its sole and absolute discretion, based upon the above criteria
and such other factors as the Governmental Unit may deem relevant. The
determination of the end of the Construction Phase by the Governmental Unit shall be
conclusive, and any judicial review of such determination shall be governed by the
substantial evidence rule.
D. "Abatement" means the temporary or partial exemption from ad valorem taxes
of
certain added value to real and personal property in a zone designated for economic
development purposes pursuant to the Act
E. "Eligible ible Pro ert " means the buildings, structures, site Improvements, and that office
space and certain personalproperty necessary to the operation and administration of
p p
the Facility to be constructed pursuant to this Agreement. A list of the Eligible
Property is set forth in the Project Description which is attached hereto as Exhibit "A"
p
and made a part hereof. During the Construction Phase of the Eligible Property, the
Owner may make such change orders to the Eligible Property as are reasonably
necessary to accomplish its intended use, provided that no such change order may be
made which will change the qualification ofthe project as a "Facility" under the
Guidelines and Criteria for Granting Tax Abatement approved by the Governmental
Unit.
F. "Ineligible Property" means land; inventories; supplies; tools; furnishings and other
forms of movable personal property; vehicles; vessels; aircraft; housing; hotel
accommodations; deferred maintenance investments; property to be rented or leased
except as provided in Section 2(e); improvements for the generation or transmission of
electrical energy not wholly consumed by a New Facility or expansion; any
improvements, including those to produce, store or distribute natural gas, fluids or
gases, which are not integral to the operation of the Facility; improvements to real
g
p� ro ert which have an economic life of less than 15 years; property owned or used by
the State of Texas or its political subdivisions or by any organization owned, operated
or directed by a political subdivision of the State of Texas; unless any of the above
typesproperty of ro erty are specifically authorized by the Governmental Unit.
U. "Added Value" means the increase In the assessed value of the Eligible Property as a
result of "expansion" or "modernization" of an existing facility or construction of a
"new facility." It does not mean or include "deferred maintenance."
H. "Facility" means a Basic Manufacturing or Service Facility, Regional Distribution
Center Facility, Regional Telecommunications/Data Processing Center Facility,
Regional Visitor Amusement Facility, Central Business District (CBD) Residential
Facility,Renewal Community Facility, or Petrochemical Facility approved by the
Governmental Unit as set forth in the Guidelines and Criteria for Granting Tax
HALEG-DIR\Shared\GaryS\Economic Development\Tax abatement afire mentR d ooflnn 071OI rene r comm.do
Page 2 of 13
Abatement adopted by the Governmental Unit.
The Guidelines and Criteria for Granting Tax Abatement adopted by the Governmental Unit are
as apart of thisAgreement. Except as the same may be modified herein, all
incorporated
definitions set forth therein are applicable to this Agreement.
Iii. PROPERTY
The Property is an area within the City ofCorpus Christi, Texas, located in whole or in part
within the jurisdiction of the G v rnmnt Unit as is more fully described in Exhibit
attached hereto and made a part hereof. Said Property is located within a zone for tax abatement
established pursuant to Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus
Christi, Texas.
The Nueces County raisal District has established the following values for the Property
as of the January 1 valuation date prior to the date of execution of this Agreement.
Account No. n/a
Personal property $ nia
Account No. 00035648
Land $ 250,000
Improvements $0.00
The Governmental Unit and the Owner agree that the value of any additions to the Improvements
made after January 1 or not otherwise reflected on the above valuation of Improvements is:
Additional Improvements. $o
Addition of the above amount to the valuation of the Improvements as of the January 1 valuation
date prior to the date of execution of this Agreement results in a Base Year Value as follows:
Base Year Value: $250,000.
TV. TERM OF ABATEMENT AND AGREEMENT
The Governmental Unit agrees to abate the ad valorem taxes on the Eligible Property in
accordance with this paragraph and paragraphs V and VI hereof. The Abatement shall be
p g p
with the January1 valuation date immediatelyfollowing the date of execution of this
effective
Agreement. The Abatement shall continue for up to two (2) years during the period of the
Phase and for the next three full tax years thereafter, expiring as of cb 1
Construction
tax year. If the period of the Construction Phase exceeds two(2)years, the Facility
of such third,
considered completed for oses of Abatement, and in no case shall the period of
shall be �
Abatement inclusive of construction and completion exceed five tax years; The years of
Abatementp ro id d herein shall in each instance coincide with the tax year commencing on
g
January
1 and expiring on December 31, and in no event shall the Abatement extend beyond
H:\LEG-D1 \ har d\ aryS E onomiC Development\Tax abatement a reement edl oo#Inn 071Ol renew comm.doe
Page 3 of 13
December 31 of the fifth tax year. This Abatement shall also cover as Eligible Property those
supplemental improvements to the Eligible Property that are added or constructed during the
post -construction three (3) year period of Abatement. In no event, however, shall the total
Abatement period for such Eligible Property exceed the maximum five (5) year Abatement
period for the entire project as specified herein.
The term of this Agreement shall continue for a period of five (5) years following expiration
of the abatement period. All terms and conditions imposed upon the Owner shall continue in
effect during such period, and the Owner shall be obligated specifically to continue the minimum
employment levels specified herein. Any default shall be subject to the provisions of Article Vill
hereof.
V. TAXABILITY
During the period that the Abatement is effective, taxes shall be payable as follows:
(1) The value of the land comprising the Property shall be fully taxable;
The Base Year Value of existing Improvements comprising the Property shall be fully
taxable;
The value of Ineligible Property shall be fully taxable; and
The Added Value of Eligible Property shall be abated as set forth in Part VI herein.
VI.AMOU T OF ABATEMENT
T
The Abatement provided by this Agreement shall be based upon (for a Renewal Community
Facility) for each created one (1) new permanent full-time job per $50,000 of Added Value to a
property f ollowin the completion of c nstruction and r aintain the same level ofemployment for
p y
the term of the abatement agreement, the percentage of tax abated shall be in accordance with the
following schedule:
Perenta • e of Abatement
Construction Period 100%
(not to exceed 2 years)
Year l 75%
Year 2 75%
Year 3 %
In order to be counted as a permanent job under this Agreement, the job must be a full-time
positionproviding roviding regular work schedules at least 35 hours per week. For compliance
purposes, oses, the determination date shall be January 1 of each year commencing with the
January 1 following the date of completion of construction. The percentage of abatement
HALEG-DIR\SharediGarySTconomie Development\Tax abatement a r ementl edF ooflnn 071015renew comm.doe
Page 4of13
provided each year under this Agreement shall be based upon the employment information
as ofJanuary 1 of such year. As a result, the actual amount of abatement may vary from
year to year based upon employment levels and property valuations.
[Note: If this project is designated as a "rehabilitation project" under the Guidelines
and Criteria which involves the adaptive reuse of an existing structure or building for a
Facility, the project must involve a minimum capital expenditure of $250,000. The
rehabilitation project must involve the adaptive reuse of an existing structure or building
currently on the property tax rolls so that the Base Year Value associated with the project
will include both the value of the land and the existing improvements. The Owner and
Owner's landlordJ. ecifically disclaim any abatement for improvements to the building, and
the covenants and obligations hereof shall not be binding upon Owner's landlord. The sole
Eligible Property subject to abatement shall be the value of personal property such as
furniture and movable equipment installed by Owner which would otherwise be considered
Ineligible Property for any other type of abatement category. In no event, however, may the
total value of such personal property subject to abatement exceed $1 million.]
At the time of execution of this Agreement, the Owner reasonably estimates and represents
to the Governmental Unit that the Added Value comprising permanent Improvements upon
completion of the Construction Phase shall be:
$ 4,350*000 ("Estimated Added Value") ofwhich $650,000 is eligible for tax
abatement.
In the event that upon completion of the Construction Phase the Added Value of permanent
Improvements, as determined by said Appraisal District, shall at any time thereafter during the
p
period of Abatement be less than eight -five percent(85%)of the Estimated Added Value, not
due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes
hereunder, an amount equal to the then current tax rate of the Governmental Unit applied to the
difference between the Added Value from eighty-five percent (85%) of the Estimated Added
Value, multiplied by 100% minus the net percentage of Abatement provided under this
Agreement. For the purposes of this provision, the term "circumstances beyond the control of
Owner" shall include casualty losses, national economic factors, shutdowns due to governmental
regulations, strikes, acts of war; and the like. The formula for calculating such additional tax is
outlined as follows:
(Tax Rate] of Est. Added Value - Actual AV) - Abatement%)] = Additional
Tax.
VII. CONTEMPLATED IMPROVEMENTS
The contemplated improvements are set forth in the Project Description attached as Exhibit
p p
"A." During the Construction Phase, the Owner may make such change orders to the project as
are reasonably necessary, provided that no such change order may be made which will change
the qualification of the project as a "Facility" under the Guidelines for Granting Tax Abatement
H:\LE -DIR\ hared\ ary lE onomi Development\Tax abatement agree entF edRoofnn O7I 1 r new comm.doc
Page 5 of 13
approved by the Governmental Unit. All improvements shall be completed in accordance with all
applicable laws, ordinances, rules or regulations. During the term of this Agreement, use of the
Property shall be limited to operation of the Facility described in the Project Description
consistent with the general purpose of encouraging development or redevelopment of the zone
during the period ofthis Agreement.
Owner represents and warrants that this project will add at least one (1) additional
permanent or full-time operating or contract employee per $50,000 of Added Value to the
property following the completion of construction and maintain the same level of employment
for the term of the abatement agreement. The project is not expected to solely or primarily have
the effect of transferfing employment from one part of Nueces County to another.
VIII. EVENTS OF DEFAULT AND RECAPTURE
A. Failure to Commence Operation During Term of Agreement. In the event that the
Facility is not completed and does not begin operation with the minimum number of 50
permanent jobs by the January 1 following the completion of construction, no
abatement shall be given for that tax year, and the full amount oftaxes assessed against
the property shall be due and payable for that tax year. In the event that the Owner fails
to begin operation with the minimum number of 50 permanent jobs by the next January
1, then the abatement Agreement shall terminate and all abated taxes during the period
ofconstruction shall be recaptured and paid within 60 days ofsuch termination.
B. Discontinuance of Operations During Term ofAbatement. In the event the Facility is
completed and begins operation with the required minimum number of permanent jobs
p g
but subsequently discontinues operations or the minimum number of permanent jobs is
not maintained on any January 1 during the term of the Agreement after the completion
of construction, for any reason except on a temporary basis due to fire, explosion or
other casualty or accident or natural disaster, the Agreement may be terminated by the
Governmental Unit, and all taxes previously abated by virtue of the Agreement shall be
recaptured and paid within 60 days ofsuch termination.
C. Delinquqrjt Taxes. In the event that the Owner allows its ad valorem taxes to become
delinquent and fails to timely and properly follow the legal procedures for their protest
and/or contest, this Agreement shall terminate and so shall the abatement of the taxes
for the calendar year of the delinquency. The total taxes assessed without abatement for
that calendar year shall bepaidwithin6Qdaysfromthedateoftermination. Penalty and
interest shall not begin to accrue on the additional amount of taxes due as the result of
recapture under this provision until the first day of the month following such sixty (60)
day notice, at which time penalty and interest shall accrue in accord with the laws of
the State of Texas. Penalty and interest on the amount of taxes originally levied based
upon the Abatement shall, of course, begin to accrue as of the date such taxes were due
in accord with the laws of the State of Texas.
HALEG-DIRAShared\GarySTconomic Dev lopment\Tax abatement a reemeni ed oofinn O71O1 ren w comm.doc
Page 6 of 13
D. Notice of Default. Should the Governmental Unit determine that the Owner is in default
according to the terms and conditions of this Agreement, it shall notify the Owner that if
such default is not cured within sixty days from the date of such notice ('Cure Period'),
then this Agreement may be terminated. In the event the Owner fails to cure said default
during the Cure Period, this Agreement may be terminated and the taxes abated by virtue of
the Agreement will be recaptured and paid as provided herein.
E. Actual Added Value. Should the Nueces County Appraisal District determine that the total
level of Added Value during any year of the term of this Agreement after completion of the
Construction Phase is lower than the Estimated Added Value such that a lower percentage
of Abatement is applicable, for each year during which an Abatement has been granted the
difference between the tax abated and the tax which should have been abated based upon the
actual Added Value shall be determined by the Governmental Unit and paid within 60 days
of notification to the Owner of such determination. Penalty and interest shall not begin to
accrue upon such sum until the first day of the month following such sixty day notice,
at which time penalty and interest shall accrue in accord with the laws of the State of Texas.
F. Reduction in Rollback Tax Rate. If during any year of the period ofAbatement any portion
of the abated value is added to the current total value of the Governmental Unit but is not
treated as 'new property value' (as defined in Section 26.012 (17) of the Texas Tax Code)
for the purpose of establishing the "effective maintenance rate" in calculating the 'rollback
tax rate' in accord with Section 26.04 (c) of the Texas Tax Code and if the
Governmental Unit's budget calculations indicate that a tax rate in excess of the `rollback
tax rate' is required to fund the operations ofthe Governmental Unit for the succeeding
year, then the Governmental Unit shall recapture from the Owner a tax in an amount equal
to the lesser of the following:
(1) The amount of the taxes abated for that year by the Governmental Unit with respect to
the Property.
(2) The amount obtained by subtracting the rollback tax rate computed without the abated
property value being treated as new property value from the rollback tax rate computed
with the abated property value being treated as new property value and multiplying the
difference by the total assessed value of the Governmental Unit.
If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then
the amount of the recapture calculated in accord with subparagraph (2) above shall be
prorated on the basis of the value of the abatement with respect to each taxpayer.
This event shall not constitute a `default" under this Agreement, and the sixty day Cure
Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30)
days after notice thereof has been given to the Owner. Penalty and interest shall not begin to
accrue upon such sum until the first day of the month following such thirty day notice,
at which time penalty and interest shall accrue in accord with the laws of the State of Texas.
HALEG-DIR\Shared\GaryS\Economic Development\Tax abatement agreement ed ooflnn 07101 r n w comm.doe
Page 7 of 1
G. Continuation of Tax Lien. The amount of tax abated each year under the terms of this
Agreement shall be secured by a first and prior tax lien which shall continue in existence
from year to year until such time as this Agreement between the Governmental Unit and
Owner is fully performed by Owner, or until all taxes, whether assessed or recaptured, are
paid in full.
In the event of any default by Owner, the governing body of the Governmental Unit reserves
the right to terminate or modify this Agreement. Owner shall be afforded written notice of such
default and the opportunity to cure as provided above. If Owner believes such action was
improper, oper, Owner may file an appeal in Nueces County district court within sixty(60)days after
i .4
written notice of the action by the Go ennnaerital Unit. Owner shall remit to the Governmental
Unit, within such 60 -day period, any additional or recaptured taxes levied pursuant to the
payment ment rovisions of Texas Tax Code § 42.08. If the final determination of the appeal increases
Owner's tax liability above the amount paid, Owner shall remit the additional tax pursuant to
Tax Code § 42.42. If the final determination of the appeal decreases Owner's tax liability, the
Governmental Unit shall refund the Owner the difference between the amount of tax paid and the
amount of tax for which Owner is liable pursuant to Tax Code § 42.43.
IX. ADMINISTRATION
Inspections. The Owner shall allow employees and/or representatives of the Governmental
Unit to have access to the Property during the term of this Agreement to inspect the Facility to
determine compliance with the terms and conditions of this Agreement. All inspections will be
made only after the giving of twenty-four (24) hours prior notice and will only be conducted i
such manner as to not unreasonably interfere with the construction adr operation of the
Facility. All inspections will be made with one or more representatives of the Owner and in
accordance with Owner's safety standards.
Appraisals. The Chief Appraiser of the Nueces County Appraisal District shall annually
determine i the taxable value of the real and personal property comprising the Property taking
into consideration the Abatement provided by this Agreement, and ii the full taxablevalue
without Abatement of the real and personal property comprising the Property. The Chief
Appraiser shall record both the abated taxable value and the full taxable value in the appraisal
pp
records. The full taxable value figure listed in the appraisal records shall be used to compute the
amount of abated taxes that are required to be recaptured and paid in the event this Agreement is
terminated in a manner that results in recapture. Each year the Owner shall furnish the Chief
Appraiser with such information outlined in Chapter 22, Texas Tax Code, as amended, as may be
necessary for the administration of the Agreement specified herein.
Annual Reports. Owner shall certify to the governing body of the Governmental Unit on or
before April 1 each year that the Owner is in compliance with each applicable term of this
Agreement. Additionally, during the initial four years of the term of property tax abatement,
Owner shall provide to the Governmental Unit an annual report covering those items listed on
Schedule I attached hereto in order to document the efforts of the Owner to acquire goods and
services on a local basis. Such annual report shall be prepared on a calendar year basis and shall
H:\LE -Dl lsbared\ ary\Eoonomi Development\Tax abatement a r ementRed ooflnn 07IOI5ren w comm.doc
Page of13
be submitted to the Governmental Unit no later than ninety days following the end of each
such calendar year. The annual report shall be accompanied by an audit letter prepared by an
independent accounting firm which has reviewed the report.
"u Local' Provision. The Owner additionally agrees to give preference and priority to
local manufacturers, suppliers, contractors and labor, except where not reasonably possible to do
so without added expense, substantial inconvenience, or sacrifice in operating efficiency. In any
such exception cases involving purchases over $10,000.00 a justification for such purchase shall
be included in the annual report. The Owner further acknowledges that it is a legal and moral
obligation of persons receiving property tax abatements to favor local manufacturers, suppliers,
contractors and labor, all other factors being equal. For the purposes of this provision, the term
`local" as used to describe manufacturers, suppliers, contractors and labor shall include firms,
businesses, and persons who reside in or maintain an office in either Nueces County or San
Patricio County. In the event of a breach of the buy local provision, the percentage of abatement
shall be proportionately reduced to the amount the disqualified contract bears to the total
construction cost for the project.
X. ASSIGNMENT
T
The Owner may assign this Agreement to any one or more corporation(s), 0% or more of
the outstanding voting securities of which are owned, directly or indirectly, by one of the
Owners, or any partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an
Owner, is a general partner. The Owner may assign this Agreement to any other new owner or
lessee of the Facility with the prior written consent of the Governmental Unit, which consent
shall not be unreasonably withheld. Any assignment shall provide that the assignee shall
irrevocably and unconditionally assume all the duties and obligations of the assignor and become
the Owner upon the same terms and conditions as set out in this Agreement. In the event more
than one entity is Owner hereunder, the obligations ofsaid entities shall be joint and several. Any
assignment of this Agreement shall be to an entity that will provide substantially the same
improvements to the Property, except to the extent such improvements have been completed. N
assignment shall be approved if the Owner or any assignee is indebted to the Governmental Unit
for ad valorem taxes or other obligations.
XL NOTICES
Any notice required to be given under the provisions of this Agreement shall be in writing
and shall be duly served when it shall have been deposited, with the proper postage prepaid
thereon, and duly registered or certified, return receipt requested, with the United States Postal
Service, addressed to the Governmental Unit or Owner at the following addresses. If mailed, any
notice or communication shall be deemed to be received three days after the date of deposit in
the United States Mail. Unless otherwise provided in this Agreement, all notices shall be
delivered to the following addresses:
I :\LE -D1 \ hared\ aryST onornlo D velopm nt\Tax abatement a reement ed oofinn 07101 renew eomm.doe
Page 9 of 13
To the Governmental Unit: CITY OF CORPUS CHRISTI, TEXAS
1201 Leopard Street
P. O. Box 9277
Corpus Christi, Texas 78469
Attn: City Manager
To the Owner:
Nueces Hotel Holdings, L.P.
3401 Alien Parkway, Suite 200
Houston, Texas 77019
Attn: David Hillman
Either art may designate a different address by giving the other party ten days' written
notice.
This Agreement has been executed by the parties in multiple originals or counterparts, each
having full force and effect.
Executed this day of , 2007 ■
GOVERNMENTAL UNIT:
ATTEST:
CITY OF CORPUS CHRISTI, TEXAS
By: By:
Armando C a a, City Secretary
APPROVED AS TO FORM:
By:•
Gary . Smith, Assistant City Attorney
for Mary Kay Fischer, City Attorney
OWNER:
George Noe, City Manager
Nueces Hotel Holdings, L.P.
By:
David Hillman
Vice -President
Nueces Park Associates, Inc.
General Partner
H:\LEG-DIR\Shared\ ary lEoonornie Development\Tax abatement a reernent ed ooflnn Ol1O1 renew comm.doe
Page 10of 13
SCHEDULE 1
"Buy Local' Annual Reports
The following information shall be reported to the Governmental Unit on a calendar -year
basis during the first four years of the tax abatement program:
1.Dollar amount spent for materials* (local).
2. Dollar amount spent for materials (total).
3. Dollar amount spent for labor** (local).
4. Dollar amount spent for labor** (total).
5. Number of fobs created in the construction project (local).
6. Number of jobs created in the construction project (total).
7. Number of jobs created on a permanent basis (local).
8. Number of jobs created on a permanent basis (total).
• 'Materials' is defined to include all materials used in excavation, site improvement,
concrete, structural steel,proofing, piping, electrical, instruments, paintings and
demolition, fire
scaffolding, insulation, temporary construction facilities, supplies, equipment rental in
n
,
e nstruction small tools and consumables. This term does not include major items of machinery
construction,
and equipment not readily -available locally.
• 'Labor' is defined to include all labor in connection with the excavation, site improvement,
demolition, concrete construction, structural steel, fire proofing, equipment placement, pi
Exhibit A
Corpus Christi Project Plan
August 16, 2007
Nueces Hoteloldiegs, L.P.,planning isto construct a Red Roof Inn Hotel on a 1.7 acre parcel
at the intersection of 1-37 and Nueces Bair Boulevard in the City of Corpus Christi. The
proposed building is a 3 -story wood frame 41,000 square foot structure with a stucco exterior
and composite shingle roof. The drives and parking areas will be paved with concrete.
Amenities include a swimming pool, meeting room, coffee lounge, laundry room, fitness center
and lush landscaping, with at least 13 full-time employment positions. Public utilities will be
extended to and through the site and seven fire hydrants will be installed on both Buffalo Street
and the IH -37 frontage road. Total investment in the site is estimated at $5,000,000 plus land
costs.
Permanent improvements 4,350,000
Estimated capital $ 4,350,000
LegDir gws EcoDev a Aba e/R dRooflnfRenew omm
Page 12 of 13
EXHIBIT `'
Lot 17B,
Forest Park Addition 2, a subdivision in the City of Corpus Christi, Nueces
County, Texas, as shown by mapor plat thereof recorded in the Map Records of Nueces
County, Texas, and being known as 3030 Buffalo Street, Corpus Christi, Texas,
: -D1 \hared\ ar Sl cOnomi Dev lopment\ Tax abatement agreement edl oafinn 071015renew comm.doe
Page 13 of 13