19 - Convention Center Management Agreement & Intent to Reimburse Costs of Civic Center

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Item No. 19 TO: City Council John Godwin, City Manager FROM: Gene Anderson, Finance Director SUBJECT: CONVENTION CENTER MANAGEMENT AGREEMENT & RESOLUTION OF INTENT TO REIMBURSE COSTS OF CIVIC CENTER DATE: June 19, 2019 BACKGROUND: The citizens of Paris voted to increase the hotel occupancy tax from 7% to 9%. The City will issue certificates of obligation to fund various capital improvements at Love Civic Center. The increased revenues from the hotel occupancy tax will be used to make the debt payments on the certificates of obligation which are expected to be issued in December 2019. STATUS OF ISSUE: In order for the certificates of obligation to be issued on a tax-exempt basis, changes need to be made to the current agreement between the City and the Lamar County Chamber of Commerce. These changes have been provided to us by our bond attorney. Also, the Chamber of Commerce would like to begin the proposed capital improvements as soon as possible. The reimbursement resolution being presented would allow the Chamber to start the capital improvements by using Chamber reserve funds to pay contractors in the near term with the Chamber being reimbursed for those expenditures when proceeds from the certificates of obligation become available. BUDGET: The Chamber has previously provided capital improvement project information to the City Council. RECOMMENDATION: Motion to approve amendments to the current City/Chamber of Commerce agreement and to approve a reimbursement resolution related to the civic center improvements.