DEPARTMENT: Center City Development Office
DEPARTMENT HEAD: Lori Houston
COUNCIL DISTRICTS IMPACTED: 1
SUBJECT:
Tower of the Americas
SUMMARY:
This ordinance authorizes a $147,003.50 reimbursement to Landry's Restaurants for repair to the Tower of the Americas.
BACKGROUND INFORMATION:
On November 18, 2004, City Council approved Ordinance 99996 with Willie G's Post Oak, Inc. dba Landry's Restaurants, Inc. ("Landry's") to renovate and operate the Tower of the Americas in Hemisfair Park ("Tower") for a 15 year term with one 10 year renewal. Following extensive renovation, the Tower re-opened to the public on June 22, 2006.
Per the agreement, Landry's is responsible for maintenance of the elevators and interior improvements while the City is responsible for maintenance of the Tower's mechanical systems and structural components. In October, Landry's worked with WJE Engineers and Winco of South Texas to investigate and propose improvements to rusted horizontal members supporting exterior concrete stucco on the underside of the Tower restaurant. Prior to engaging Winco to undertake improvements, Landry's advised the City of its investigation, and proposed engaging Winco to undertake repair work at the Tower and then seek reimbursement from the City following Landry's payment to Winco. Due to the seriousness of the repair, the specialized nature of the work, and the possible impact to public safety by delay, Landry's was authorized to contract with Winco and then seek reimbursement from the City with the understanding the City may reimburse Landry's via direct payment or rent credit.
This plan of action was coordinated with Transportation and Capital Improvements, Building and Equipment Services Department, and the City Attorney's Office.
Repairs were completed in December, and the City received Landry's proof of payment to Winco on March 31. The City will reimburse Landry's in the amount of a $113,516.00 payment and a $33,487.50 rent credit.
ISSUE:
The Repair to the Tower was completed in December 2013 by Winco of South Texas. This ordinance will authorize the City to reimburse Landry's for the expenses associated with this repair.
ALTERNATIVES:
The City may elect to reimburse Landry's entirely through rent credit or direct payment, in lieu of a combination.
FISCAL IMPACT:
This ordinance authorizes a $147,003.50 reimbursement to Landry's for repair to the Tower of the Americas. Of this amount $105,516.00 will be appropriated from savings in the Facilities Services Fund, $8,000.00 will be funded through the Downtown Operations FY 2014 Adopted Budget and $33,487.50 will be reimbursed as a rent credit.
RECOMMENDATION:
Staff recommends approval of a $147,003.50 reimbursement to Landry's for repair to the Tower of the Americas.