Ordinance No. 13,219ORDINANCE NO. 13,219
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE A CONCEPTUAL
PLANNING AGREEMENT WITH GATEHOUSE CAPITAL CORPORATION FOR
THE DEVELOPMENT OF A HOTEL AND CONFERENCE CENTER AT BAYLAND
ISLAND; AUTHORIZING PAYMENT IN AN AMOUNT NOT TO EXCEED ONE
HUNDRED ELEVEN THOUSAND AND N01100 DOLLARS ($111,000.00);
MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the City
Manager to execute a Conceptual Planning Agreement with Gatehouse Capital Corporation for the
development of a hotel and conference center at Bayland Island. A copy of said agreement is attached
hereto as Exhibit "A," and incorporated herein for all intents and purposes.
Section 2: That the City Council of the City of Baytown authorizes payment to Gatehouse
Capital Corporation in the amount not to exceed ONE HUNDRED ELEVEN THOUSAND AND NO1100
DOLLARS ($111,000.00) in accordance with the agreement authorized in Section 1 hereinabove.
Section 3: That pursuant to the provisions of Texas Local Government Code Annotated
§252.048, the City Manager is hereby granted general authority to approve any change order involving a
decrease or an increase in costs of FIFTY THOUSAND AND NO/100 DOLLARS ($50,000.00) or less,
subject to the provision that the original contract price may not be increased by more than twenty -five
percent (25 %) or decreased by more than twenty -five percent (25 %) without the consent of the contractor
to such decrease.
Section 4: This ordinance shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the Cit uncil of the City of
Baytown this the 23`d day of June, 2016.
TERRY S , yor Pro Tem
A ST:
ETICIA BRYSCH, y Clerk
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APPROVED AS TO FORM:1'
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Exhibit "A"
Rick Davis,
City Manager
City of Baytown
PO Box 424
Baytown, TX 77522
gatehouse capital
June 7, 2016
Re: Proposal for Initial Period Conceptual Plan— Development of Baytown Conference Center Hotel &
Conference Center
Dear Mr. Davis,
On behalf of Gatehouse, thank you and city officials for your time in discussing the possible conference
center hotel. We are very impressed with Baytown's planning and forward- thinking approach to its
development, growth and now next phase for the future.
We clearly understand the catalytic value this hotel will have and would like the opportunity to help
make this vision a reality for your City and the City's leadership. Our proposal takes into consideration
our firm's time, effort and resources necessary to develop a deeper understanding of this project and
its economic feasibility to attract the right investors /lenders, and hotel brands /operators to this market.
Gatehouse will need to utilize its full efforts and relationships to formulate the most favorable aspects
of this project's economic viability.
Based on our understanding today, we envision the proposed hotel as the following:
o ±150 to 200 key full service hotel with typical guest amenities and services including pool,
fitness, restaurant and bar offering and as part of the hotel.
o Conference center with ballroom, breakout rooms, storage, pre - function and
banquet/catering kitchen.
We propose a 90 -day Initial Conceptual Planning Period study for Gatehouse to develop a concrete
program for the proposed hotel. After the 90 -day initial period, Baytown will have a fully vetted
conceptual analysis containing the following:
• Conceptual Hotel and Conference Center Drawings
• Conceptual Hotel and Conference Center Development and Construction Budgets
• Critical Events Path for planning, development and opening of the Project
• Term Sheets from both proposed Brand and Operator
• Outline of the proposed capital structure, and identification of the project mortgage
broker, if necessary
• Proposed Professional Team
• Preliminary Operating Pro -forma
• Conceptual Investment Summary
gatehouse capital // 1501 dragon street, suite 101, dallos, tx 75207
• Revised third party hotel and conference center market study, specific to this plan
• Revised third party econometric study, specific to this plan
• Determination of all economically feasible city incentives
• Review of entitlements and utility capacities of the selected site for the proposed purpose
with Owner
The above information will be presented in a comprehensive package for your team to keep and use.
Additionally, based on the above - mentioned information, both the City and Gatehouse will have a much
clearer understanding of the economic feasibility of this project. In the event that more time is required
to complete the study, the City and Gatehouse will meet to determine additional requirements. After
the initial 90 -day period, the City will have the right to cancel any further involvement by Gatehouse.
Should the project advance after the initial period, and both parties agree to move forward together,
Gatehouse will draft a Development Services Agreement for the proposed hotel development.
Gatehouse is proposing the 90 -day initial period at a cost of $85,000. The first payment of $42,500 will
be due upon engagement by the City, with the remainder due upon delivery of the Gatehouse Initial
Period Concept Plan. Should the parties agree to move forward, this amount will be credited against
Gatehouse's development fees. In addition, we anticipate ancillary expenses including minimal
Developer's travel and out of pocket, related expenses in accordance with the mutually and pre -
approved Initial Period Budget, attached hereto as referenced in Exhibit "A ". We assume the provision
of a site plan and topo. This budget may be amended by mutual agreement by both parties from time
to time as may be required. We understand this is an important commitment towards a greater goal and
if necessary for clarity of what we propose to produce and provide, we can show you a redacted sample
of an initial period program for a similar project.
We sincerely appreciate your time and consideration and look forward to speaking further with you and
your team about this project. Should you have any questions regarding this proposal, please feel free
to reach out to myself at 214 - 922 -4310 or Colin McDonald at 214 - 922 -4313. 1 believe that this is a truly
unique opportunity for both parties to work together and develop something extremely valuable and
game- changing for your growing City.
Sincerely yours,
Gatehouse Partners LLC 11 City of Baytown
a Texas cgWany
By: — By:
Ma rice P. Collins, Jr. Rick Davis
Title: Owner Title: City Manager
Date Executed:
galehouse capilai // 1501 dragon street, suite 101, dallas, tx 75207
EXHIBIT A
Description
Pre - Approved Travel & Misc Developer Expenses
$1,000
CBRE Party Market Study
$8,000
CBRE Econometric Job Study
$2,000
Conceptual Architectural Fees Hotel and Master
Plan
$10,000
Third Party Professional Reimbursable Expenses
$5,000
Proposed Ancillary Expenses
$26,000
gatehouse capilal // 1501 dragon street, suite 101, dallas, tx 75207