22 - Amendment to Economic Development Agreement with Emerald Hospitality

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Item No. 22 TO: Mayor, Mayor Pro Tem, and City Council Grayson Path, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Amendment to Economic Development Agreement with Emerald Hospitality, LLC Home2 Suites by Hilton Development DATE: November 13, 2023 BACKGROUND: On June 27, 2022, the City Council adopted Resolution No. 2022-046 approving an Economic Development Agreement (the "Agreement") with Emerald Hospitality, LLC ("Company") relating to the development of a Homes 2 Suites by Hilton hotel including event space. The agreement provides that the Company must have the hotel open for business within 18 months of the execution of the Agreement, which is scheduled to fall on January 5, 2024. NOTE: Emerald Hospitality is owned by Council Member Pankaj. He has filed a conflict of interest affidavit and will recuse himself from discussion and voting on this item. STATUS OF ISSUE: While the hotel is substantially completed, certain supply chain issues have pushed back the opening date until no later than April 5, 2024, and Mr. Pankaj has requested that the opening deadline be extended by 90 days. BUDGET: No impact to the budget other than the grants the city is obligated to pay under the original agreement. RECOMMENDATION: Motion to adopt a resolution approving an amendment to the Chapter 380 economic development agreement with Emerald Hospitality, LLC related to the development and construction of a Home 2 Suites and hotel and event space and authorizing the Mayor to execute same on behalf of the city.