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File #: 17-1254   
Type: Miscellaneous Item
In control: City Council A Session
On agenda: 2/2/2017
Posting Language: An Ordinance approving a Development Sublease Agreement between Hemisfair Park Area Redevelopment Corporation and ZH Downtown Development Company, LLC, an affiliate of Zachry Hospitality on approximately 5 acres of land in the northwest quadrant of Hemisfair owned by the Corporation; approval of a Parking Garage Development Agreement and License between the City, Hemisfair Park Public Facilities Corporation, and ZH Downtown Development Company, LLC, an affiliate of Zachry Hospitality to support Hemisfair and current and future development; and approval for adopting a process for City certification that a proposed hotel complies with the Hemisfair hotel restrictions. [Lori Houston, Assistant City Manager; John Jacks, Interim Director, Center City Development & Operations]
Attachments: 1. Draft Ordinance, 2. Development Sublease Agreement - Substantially Final Form, 3. Signed Development Sublease Agreement, 4. Second Amendment to Master Agreement, 5. Second Amendment to Master Lease Agreement, 6. Signed Limited Guaranty, 7. Signed Parking Garage Development and License Agreement, 8. Form 1295 ZH Downtown Development Parking Garage & License, 9. Form 1295 ZH Downtown Development & License, 10. Form 1295 ZH Downtown Development Sublease, 11. Certificates of Compliance, 12. Contract Disclosure Form - ZH PARC Development Company, 13. Parking Garage Development and License Agreement - Substantially Final Form, 14. Ordinance HPPFC 2017-02-02-0001
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DEPARTMENT: Center City Development and Operations


DEPARTMENT HEAD: John Jacks


COUNCIL DISTRICTS IMPACTED: 1


SUBJECT: Hemisfair Public Private Partnership at the Northwest Zone


SUMMARY:

City Council shall consider several items related to the a Public-Private Partnership (P3) with ZH Downtown Development Company, LLC, an affiliate of local real estate developer Zachry Hospitality for the development of 5 acres of land on the corner of Market and South Alamo that are adjacent to the proposed 9 acre Civic Park in Hemisfair.

1. Approval of a Development Sublease Agreement between the Hemisfair Park Area Redevelopment Corporation (HPARC) and ZH Downtown Development Company, LLC for the development of 5 acres of land on the corner of Market and South Alamo that is owned by the Hemisfair Park Public Facilities Corporation;
2. Approval of a Parking Garage Development Agreement and License between the City, HPARC, and ZH Downtown Development Company, LLC to facilitate the construction of a parking facility to support current and future development within Hemisfair; and
3. Adoption of a process for certification that a proposed hotel complies with the approved Declaration of Restrictive Covenants that limited the number of rooms and size of a hotel built within Hemisfair.


BACKGROUND INFORMATION:

In 2012, City Council adopted the Hemisfair Master Plan. As a result of the master plan effort, HPARC and City staff worked with the state legislature to realign the actual designated parkland to clearly delineate what is parkland and what is available for potential development. Under authority of specific legislation for Hemisfair, the City Council, in December of 2013 designated 18.47 acres of parkland in Hemisfair, more than doubling the unencumbered parkland. City Council also identified several parcels for development and conveyed these parcels to the Hemisfair Park Public Facilities Corporation (HP PFC), a corporation governed by City Council. In Oct...

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