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1995 06 15 CC Minutes, SpecialMINUTES OF THE SPECIAL SESSION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN June 15, 1995 The City Council of the City of Baytown, Texas, met in special session on June 15, 1995, at 4:00 p.m. in the Don M. Hullum Conference Room of the Baytown City Hall with the following in attendance: Eva Benavides Council Member David Byford Council Member Stephen DonCarlos Council Member Manuel Escontrias Council Member E. Frank Hinds, Jr. Council Member Rolland J. Pruett Council Member Pete C. Alfaro Mayor Bobby Rountree City Manager Ignacio Ramirez City Attorney Eileen P. Hall City Clerk The meeting was opened with a quorum present after which the following business was transacted: The City Manager announced that the planned flooding of the Brownwood Nature Center would occur on Friday, June 16. Consider Authorization to Solicit Requests for Proposals for Restaurant and Financial Services for Bayland Park Marina The City Manager stated that for the last year he and Mike Shields, Executive Director of Baytown/West Chambers County Economic Development Foundation, had worked with a group of four citizens on proposed ideas for development at the marina --Gary Dobbs, Sherri Stuewer, Mark Tiller, and Connie Magourik. There have been various financing schemes and various models considered. For years the City and the Foundation have been working toward development of a first class 950616-2 Minutes of the Special Session - June 15, 1995 hotel /marina concept: a facility to house everything under one roof- -a hotel with convention facilities, a harbor master store and restaurant. These full - service hotels are virtually impossible to finance. A number of groups have had ideas, but each needed a large amount of equity from the city, but even with $200,000,000 equity from the city, the plans never materialized. Mr. Shields and the staff talked with Senterra Development today. Senterra built Greenway Plaza, The Summit, and other facilities in the Houston area. Richard Nelson, of the Senterra Group, indicated that a large hotel chain is very interested in building at the marina without any city participation. A local institution is interested in working with the City of Baytown to finance a restaurant/harbor master facility at Bayland Park. There is one major restauranteur who wishes to work with the city on a restaurant at the marina, but the staff feels that there will be more interest once a request for proposals is ready for presentation. Therefore, the City Manager requested authorization from Council to allow the administration to develop and solicit request for proposals and come back to Council with a recommendation within thirty to forty -five days. After talking with Senterra, the staff would like to develop a site plan within the next thirty to forty -five days to locate Phase I, restaurant/harbor master facility; Phase II, convention center; and Phase III, hotel, on the marina property. The foundation will pay the $10,000 cost for the site plan. Senterra feels that they can get a national chain to come in with a 150 -room national hotel. The restaurant/harbor master facility is planned to be a split level facility. If, at the end of thirty to forty -five days, the deal with Senterra has not materialized, the restaurant/harbor master facility will still be viable. After the development of the restaurant/harbor master facility, there is every reason to believe that more interest will develop to construct a hotel. Senterra could, quite possibly, manage the entire site which the staff has always felt would be the best plan; however, nothing with Senterra will interfere with plans for a restaurant/harbor master facility. Mike Shields pointed out that the original goal for the marina was to have the hotel /convention facilities built with private dollars. There were entities willing to build a hotel, but when the restaurant was added, plus meeting space, the cost escalated. Therefore, the staff began to discuss a restaurant/harbor master facility at a cost of about $1.5 Million. At this point, neither federal funding nor bond funds seemed to be an option for this small project. Therefore, conventional funding became the alternative. With the conventional funding concept came the need for a concessionaire agreement which follows the revenue stream. With the conventional financing in place, the city would charge the restauranteur an amount of money to pay for the annual debt service, plus an amount to go into a reserve 960615-3 Minutes of the Special Session - June 15, 1995 fund to pay for maintenance and upkeep. The harbor master would pay the city a portion of profits once the operation becomes profitable. The city will develop some profit sharing arrangement regarding the boat slips. Rental of the slips for eleven months is expected to produce approximately $255,000. That would be the basis of the concessionaire agreement. The city never planned to manager the marina, and this plan fits in with that original intent. Both Gary Dobbs and Sherri Stuewer expressed support for the concept of having everything designed under one roof even if it must be accomplished in phases. Council Member Hinds moved to authorize the administration to solicit requests for proposals for restaurant and financial services for Bayland Park Marina. Council Member Escontrias seconded the motion. The vote follows: Ayes: Council Members Benavides, Byford, Escontrias, Hinds, DonCarlos, and Pruett Mayor Alfaro Nays: None Recess into Executive Session to Discuss Pending Litigation Mayor Alfaro recessed the open meeting into executive session to discuss pending litigation. When the open meeting reconvened, Mayor Alfaro announced no action was taken as a result of the executive session. Consider Proposed Ordinance No. 9050615 -1, Authorizing Settlement of City of Baytown v Bayshore Motors Inc., Cause No. 89- 28675, in the 113th Judicial District Court The administration recommended settlement of the City of Baytown v Bayshore Motors Inc. lawsuit for the amount of $64,313.24. Council Member Byford moved for adoption of the ordinance. Council Member Escontrias seconded the motion. The vote follows: 950615-4 Minutes of the Special Session - June 15, 1995 Ayes: Council Members Benavides, Byford, Escontrias, Hinds, and Pruett Mayor Alfaro Nays: None Abstained: Council Member DonCarlos ORDINANCE NO. 7331 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING SETTLEMENT OF CITY OF BAYTOWN v. BAYSHORE MOTORS, INC., IN THE AMOUNT OF SIXTY -FOUR THOUSAND THREE HUNDRED THIRTEEN AND 241100 DOLLARS ($64,313.24); AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. Adjourn There being no further business to be transacted, the meeting was adjourned. mi n utes106- 15 -95. spc N Eileen P. Hall, City Clerk