City Council - Regular Meeting

This is six o'clock. We have a quorum. Uh we're going to have the pledge and pledge of allegiance to get started. Rob, would you p please pray? Lord, we come before you this evening so very thankful for the opportunity to be here to serve this city. Thank you for all that all the people that are here. Thank you for our employees and our citizens. We thank you for your your grace, your blessings, your promises. We ask wisdom as we move through the the city's business tonight. We ask for your blessing for those that are in our city and about town tonight. We thank you for all these things in your son's name.

Amen. Let's do the pledge. Okay, we have it's time for public comments. Chief, you want to say something? All right, public comments are out. No, no, no, no, no. Special agenda item number one. Discuss and consider proposed development agreement between the city of Mount Pleasant and MPTX2 LLC providing for assistance in economic development benefits for a hotel presented by city manager Vine. Mayor, pro members of council, good evening. We have two items on the agenda tonight. Both are agreements with developers for hotels. The first one is with uh home two suites. You look at the agreement, it's the one that says city of Mount Pleasant, Texas and NPTX 2. So, this will be a home to suit uh extended stay hotel site. It will be located close to Christ Hospital. In a nutshell, Uh we are entering into a 5-year agreement with the developer and they agree this is a $14.1 million investment will have 84 rooms and it will create 19 and a half full-time employee positions. This this agreement is between again the city and the developer. They will bring the

development to the city. And to bring them to the city, we are offering them a hotel occupancy tax abatement or rebate for five years will be 95% for years one, two, three, four, and five. We are also offering as part of this development incentive package uh city tax rebate real estate or real property taxes at 25% for year one 25% two four and five a 100% city tax rebate for personal property tax for years one through five just for the hotel. And then we are also offering the city permit fees 100% rebate which is approximately 54,000. There will be a cap um it's called the city rebate cap is 1 million195,869. This first agreement again this home to suite will be five years or that $1,195,869 whichever comes first. You will notice in the agreement um that there are certain terms they have to provide again the city cap can be reached either either beforehand or the five years whichever comes first. If they reach those numbers in two years um the agreement goes away. They are required to keep property insurance. They're required of course to build the property. They are required to maintain the home to suite name name brand. If they were to change, they would have to come back to council to ask for that. They are required to

be current and remain current with their taxes as well. And there's language in this agreement. If for some reason they were to fall behind on their taxes, they report those taxes that the city can demand that they hear that and then they're given, I believe, 30 days to that. they don't the agreement would go away as well. So I think this is a very good agreement for both the developer and for the city. We're getting an excellent project. We're getting more jobs. Once this agreement is done in five years, this whole hotel could add approximately 300 something,000 annually hotel. I will be happy to answer any questions that you council. We can have questions or a motion at this point in time. We've already went over this with Rob once. This is to make it official. Council need a motion.

Um, excuse me, Mayor Proim. Yes. Uh, if the mayor would like to participate in the meeting, he has to have his camera on and also h not be muted. Is the mayor here? I think he is. There we go. Thank you. I am. Sorry, I was had a grandkid in the background, so I figured y'all would appreciate the muting. Sorry, I didn't realize my camera wasn't on. Sorry. One of those legal things. Welcome, Mayor. Thank you'all. Okay, council. Back to the motion. Can we get a motion?

I make a motion that we approve the substantial financial final form of the development agreement between the city of Mount Pleasant and MPTX2 LLC providing for assistance in economic development benefits for a home to suit hotel and authorize the city manager and city attorney to negotiate the final agreement in accordance with the substantive terms. I second. We have a motion in a second. Candace, would you record the vote? Yes. I I

passes unanimously. We'll close that item out. You can vote. The mayor can vote if he would like because you Yes, I can vote. Yes. No, he can vote. Yeah, the I'm the mayor uh can vote since he's not chairing the meeting. What say you, mayor? I it'll pass four votes unanimously.

First, we're closing out item one. We'll go to item two. We're going to discuss and consider a proposed development agreement between the city of Mount Pleasant and MT MPTX1 LLC providing for assistance and economic development benefits for a hotel and meeting space presented by city manager Vine.

Mayor Pro10, members of council, we are here again with another agreement. This is for a Marriott dual brand. It's a Fairfield in a town place suite. Have a picture of that. This is a 104 room, $18.2 million investment, 22 full-time employees. This will will this Marriott dual brand will have a 4,000 square foot meeting space uh which we believe will help create a destination location for the city. They could bring in small conferences. They can do all sorts of different things. And and while people are here, the anticipation is they'll they'll travel downtown. They'll drive around town and hopefully come back after their visit. But again, this is for a Marriott dual brand. There is one correction. If you would look on page six, the city re page six, number seven, the city rebate cap states the parties agree that some of the rebates due from the city for hotel occupant Real property tax, personal property tax, and permit shall not exceed 1,165,412 and no cents. The actual number, that was typo, the actual number is1,675,000 or 675, $412.36. So that will be amended in the final draft but I wanted to bring that out to you that that is a difference. So with this particular agreement this of the two projects uh while both projects we agree are are valuable and add value to the city we place more value on this particular project. So if

you years one, two, three, four, and five all have a 95% rebate of the occupancy tax going back to the developer. The property tax uh if you remember for the home two suites was 25% across the board for five years. This is year one is a 75% rebate. Year two is a 75% rebate. Year three is a 50. Year four is a 50 and year five is a 25% rebate. And then for the personal property taxate, just like the last agreement, at 100% and then also a 100% rebate for permitting fee which for this project was 66,000 a little over. So again it's 1.6 million for this. The last one was 1.1 total between these two projects. It's a $2.8 million rebate. The wonderful thing about this is we're rebating them the money. So development is truly paying for itself. This agreement similar to the last one, very similar. They have to remain a Marriott brand. If they want to change that, they have to come in and get the permission from council. They have to have insurance and they have to remain current on their tax. I'll be happy to answer any question.

Thank where exactly is this going to be? I get where the phone I'm sorry I should have stated that this will be located north of

north on the east side of council questions or motion. I make a motion for approval in substantial final form of the development agreement between the city of Mount Pleasant and MP Texas 1 LLC providing for assistance and economic development benefits for a Marriott branch hotel and meeting space and authorize the city manager and city attorney to negotiate the final agreement in accordance with the substantive terms. A second.

We have a motion and a second. Candace, would you record the vote? I Yes. I I That passes unanimously. We'll close out that item. That's the last item on our agenda tonight. I want to thank city man Rob for his hard work in getting these here. This is very beneficial to Mount Pleasant and the tax money is going to be greatly appreciated. Thank you, Rob. With that, uh, we are ajourned.