HomeMy WebLinkAboutCity Council Resolutions (R-11-3430)-12/09/2011RESOLUTION R-11-3430
A RESOLUTION OF THE CITY OF COLLEYVILLE CITY
COUNCIL AWARDING AN ECONOMIC DEVELOPMENT
PERFORMANCE LOAN TO BARRY TATE, EFFAM HALL,
LLC AND ANY ASSOCIATED OR SUBSEQUENT LIMITED
LIABILITY CORPORATIONS
WHEREAS, the City of Colleyville City Council unanimously adopted Economic
Development Incentive Guidelines and Criteria through Resolution R-11-
3387 on August 2, 2011; and
WHEREAS, the City's Economic Development Incentive Guidelines and Criteria
include a program for "forgivable loans" that the City of Colleyville will
consider providing to destination restaurants or retailers that have a strong
enough appeal to draw diners or customers from beyond our community;
and
WHEREAS, Dallas County restaurateur Barry Tate and daughter Charlotte Tate have
made application through Effam Hall LLC for such a loan of $200,000 for
improvements to and expansion of the structure at 5150 Colleyville
Boulevard with projected construction expenses of $230,000 to 260,000;
and
WHEREAS, Mr. Tate has communicated his preference that the requested loan
amount be repaid to the City, rather than forgivable, and is, therefore,
willing to execute an agreement with the City for a performance-based
loan; and
WHEREAS, City staff and the City Council have thoroughly reviewed the applicants'
application, combined financial statements, business plan, operating
agreement, balance sheet and plans for new restaurant development in :
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two other communities; and
WHEREAS, all statutory and constitutional requirements for the passage of this ~
Resolution have been adhered to, including but not limited to the Open '',
Meetings Act; and
WHEREAS, the City Council determines that the passage of this Resolution is in the
best interests of the health, safety and welfare of the public.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
COLLEYVILLE, TEXAS:
Sec. 1. THAT the Colleyville City Council hereby awards a performance loan of
$200,000 to Effam Hall LLC, for farade, interior and signage
Resolution R-11-3430
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improvements to and expansion of 5150 Colleyville Boulevard, to be
funded out of the City's Strategic Initiatives Fund.
Sec. 2. THAT City staff shall subsequently negotiate and City Manager execute
an agreement for the disposition of said loan.
Sec.3. THAT no loan monies shall be expended until such time that all
improvements are completed and inspected by City staff.
Sec.4. THAT the executed agreement between the City, Effam Hall LLC,
associated, and any subsequent Limited Liability Corporations, will include
provisions for repayment of the loan over a five year period, in annual
increments of 20% or $40,000, beginning one year after the issuance of a
certificate of occupancy, with interest charged and the interest rate being
the average of the City's investment interest rate for the prior four
quarters, should The Londoner not reach projected gross taxable sales
targets agreed to with the City at the end of each year; moreover, the
agreement shall include a provision that the entire loan amount shall be
recaptured and reimbursed within 30 days, should The Londoner ever
suspend operations at 5150 Colleyville Boulevard within five (5) years
following the issuance of a certificate of occupancy.
AND IT IS SO RESOLVED.
APPROVED BY A VOTE OF AYES, l, NAYS AND ~
ABSTENTIONS ON THIS THE DAY OF 2011.
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CITY OF COLLEYVILLE
~'ynthia Singleton,
City Secretary
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David Kelly
Mayor