RES 2005-32TOWN OF TROPHY CLUB, TEXAS
RESOLLITION NO. 2005-32
A RESOLLITION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY
CLUB, TEXAS, AND THE TROPHY CLUB ECONOMIC DEVELOPMENT
CORPORATION 4B, REPEALING RESOLUTION NO. 2003-04 AND
AUTHORIZING AN ECONOMIC DEVELOPMENT AGREEMENT WITH
MIDWEST COMMERCIAL REALTY; DESIGNATING TERMS OF THE
AGREEMENT AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the Town Council of the Town of Trophy Club, Texas, recognizes the need to attract
and retain economic development projects;
WHEREAS, the construction of community property such as restaurants and hotels as proposed
by Midwest Commercial Realty (hereinafter "~roject") will promote new and expanded business
development, which will be beneficial to the Town, and will also increase the sales tax revenue to the
Town and the EDC4B;
WHEREAS, Midwest Commercial Realty is currently in negotiations with a national hotel chain
on a proposed project on the site;
WHEREAS, the EDC4B currently has funds available for the proposed Project and has agreed to
funding as specified in Exhibit "A", a copy of which is attached hereto and incorporated herein; and
WHEREAS, the EDC4B and the Town of Trophy Club believe it to be in the best interests of the
Town of Trophy Club and its7 residents to pursue the Project with funding specified in Exhibit "A";
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF TROPHY CLUB, TEXAS:
Section I: That the Town Council of the Town of Trophy Club authorizes and approves the
expenditure of EDC4B funds in the manner outlined on the attached Exhibit "A" and such approval is
evidenced by the Mayor's signature on the document.
Section 2: That the subsequent agreement memorializing the terms specified in Exhibit "A" is
between Midwest Commercial Realty and the EDC4B, and does not run with the land and is not
assignable and terminates at such time that Midwest Commercial Realty ceases to be the principal
developer. Such agreement shall contain provisions allowing EDC4B the opportunity to recover funds
paid on this Project in the event of breach or default under the agreement by Midwest Realty.
Section 3: That a substantial copy of the funding provisions of the agreement between
Wdwest Commercial Realty and EDC4B is attached hereto as Exhibit "A" and that such amount shall not
exceed $100,000.
Section 4: That if this development incentive is not initiated within one year of the effective
date shown on the attached signature page the agreement automatically terminates.
Section 5: That the passage of this Resolution is only an expression of the interest of the Town
and of the EDC4B to enter into an agreement with Midwest Commercial Realty and does not evidence a
EXHIBIT A
Point of Payment: Fifty Thousand dollars to be paid at the time Certificate of Occupancy is issued on
any Project expected to produce an annual income of more than $20,000 of combined Town of Trophy
Club sales tax, (EDCA, EDCB, and Town) within three years of completion.
Second Pro-iect: Twenty Five Thousand dollars to be paid at the time Certificate of Occupancy is issued
on the second Project expected to produce an annual income of more than $20,000 of combined Town of
Trophy Club sales tax (EDCA, EDCB, and Town) within three years of completion.
Third Pro.iect: Twenty Five Thousand dollars to be paid at the time Certificate of Occupancy is issued on
the third project expected to produce an annual income of more than $20,000 of combined Town of
Trophy Club sales tax (EDCA, EDCB, and Town) within three years of completion.
Alternative "A": Total annual sales tax revenue to the Town of Trophy Club including EDCA and
EDCB generated by the first project to be rebated after completion of the first year of operation and
subsequent years through the end of operation in year four. Total aggregate amount of sales tax rebate
will not exceed $50,000 over the entire four-year period nor will it exceed $25,000 in any individual year.
Maximum total incentive: The maximum amount of incentive utilizing any combination of the above
proposals will not exceed $100,000.
Agreement: A final agreement shall be required to memorialize the full and final terms and conditions
of the grant of economic development incentives for the Project outlined in this Exhibit "A". Such
agreement shall be subject to Council approval, upon recommendation by the EDC4B, and shall comply
with all requirements of law.
binding obligation on EDC4B or the Town to enter into an agreement to provide funding for the Project
unless the nature and quality of such Project is approved for economic development incentives and the
terms of such agreement are approved by Town Council.
Section 6: That this Resolution shall become effective from and after its date of passage in
accordance with law, and it is so resolved.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 28'
day of October, 2005.
Mayor
Town of Trophy Club, Texas
~a&$~icks
President, Economic Development 4B
Town Secretary
Town of Trophy Club, Texas
APPROVED AS TO FORM:
Town Attorney
Town of Trophy Club, Texas