HomeMy WebLinkAboutPR 16050: DIGITAL WORKFORCE ACADEMY CONTRACT FOR SABINE HOTEL interoffice
MEMORANDUM
To: Mayor, City Council, and City Manager 1_n �a
From: Val Tizeno, City Attorney �`
Date: August 20, 2010
Subject: P. R. No. 16050; Council Meeting August 24, 2010
Attached is P. R. No. 16050 authorizing the execution of a
twenty -four (24) month option contract with Digital Workforce
Academy for the purchase of the Sabine Hotel.
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Attachment
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08/20/2010 gt
RESOLUTION N0.
A RESOLUTION AUTEORIZING TIN !t=CUTION OP . A R. N0. 16050
TWENTY -POUR (24) MONTE OPTION CONTRACT WITH
DIGITAL WORRPORCE ACADEMY FOR TEE PURCHASE
OF THE SABI= HOTEL
WHEREAS, the City of Port Arthur requested proposals for
the redevelopment of the Sabine Hotel in an effort to
revitalize the downtown district of Port Arthur; and
WHEREAS, one proposal was received from Digital Workforce
Academy (a copy of the offer is attached hereto as Exhibit "A ");
and
WHEREAS, Digital Workforce has requested that the City
provide it with the option to purchase the Sabine Hotel at a
price of $10,000; and
WHEREAS, Digital Workforce has proposed that the City grant
it an option period of 24 months for an option fee of $1,000 to
be applied to the purchase price of $10,000 at the time of
closing; and
WHEREAS, during the option period, the City reserves the
right to terminate this contract in the event it wishes to enter
into an agreement with another developer. This termination is
contingent upon another developer guaranteeing that it has the
ability to redevelop the Sabine Hotel up to current building
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codes. This guaranty could include the following items: a bond,
an irrevocable letter of credit, or cash. In the event the
City does terminate for this reason, Digital workforce shall be
entitled to reimbursement of expenses up to $25,000.
SIERRAS, it is deemed in the best interest of the citizens
of Port Arthur to authorize the City Manager to execute an
option contract for a period of 24 months with Digital workforce
Academy.
NOW TEERElORE, BE IT RESOLVED BY TEE CITY COUNCIL 01 TEE
CITY OF PORT Air, TEXAS:
Section 1. That the facts and opinions in the preamble
are true and correct.
Section 2. The City Manager is authorized to execute an
option contract for a twenty -four (24) month period with Digital
Workforce Academy in substantially the same form as Exhibit "E "
Section 3. That a copy of the caption of this
Resolution be spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this _ day of
, A.D., 2010, at a Meeting of the City Council
of the City of Port Arthur, Texas, by the following vote: AYES:
Mayor
Councilmembers
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NOES:•
MAYOR
ATTEST:
SHERRI BELLARD, ACTING CITY SECRETARY
APPROVED AS TO POR..
'M d '
CITY ATTO EY
APPROVED !0* ADMINISTRATION:
CITY MANAGER
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EXHIBIT "A"
The Sabine Hotel Redevelopment Proposal 1 2010
VI. THE OFFER
The Sabine Hotel is an older structure existing since the late 1800's but vacant since the early
1980's. This means there are many inevitable unknowns with the revitalization of this property.
The uniqueness of our team is our ability to take the unknown and develop it Into a renaissance
location. In order to reach this goal the Digital Workforce makes a commitment to conduct an
in-depth analysis of all possibilities and bring forth a product that the City of Port Arthur can be
proud of. Based on an option agreement The Digital Workforce Academy will take ownership
of the property as an option when all determining factors have been considered. This option
period will last up to 24 months with measurable deliverables (see Section V. for timeline). The
execution of the option to purchase the property will be completed within the first 18 months
of the engagement.
In consideration of determining the true potential of the property, designing an exemplary
approach to revitalization, and assessing the true cost of our conceptual design The Digital
Workforce Offer for this property is as follows:
1. An option fee of $1,000 to be applied to the purchase price of $10,000 at the
time of closing.
2. A percentage of the sales price will used for the securing and updating
necessary Infrastructure to accommodate the redevelopment of property
3. A percentage of the sales price will be used for the marketing of the Sabine
Hotel and the marketing of future downtown Port Arthur
4. An option for a one -time renewal of this program allowing for a six to eight
month extension If necessary.
5, The Digital Workforce Academy will cultivate partnerships with other
agencies and organizations to facilitate the revitalization
7
EXHIBIT "B"
STATE OF TEXAS /
1
COUNTY OF JEFFERSON 1
OPTION CONTRACT BETWEEN
THE CITY OF PORT ARTHUR AID
DIQITAL WORKFORCE ACADEMY, INC.
WHEREAS, the City of Port Arthur ( "City ") is the owner of
real property located at 600 Procter Street, Port Arthur, Texas
77640, referred to in this Option Contract as the "Property" and
more particularly described in Exhibit "A "; and
WHEREAS, Digital Workforce Academy, Inc. ( "Company ") is an
education center doing business in Port Arthur, Texas and
responded to the City's Request for Proposals (attached hereto
as Exhibit "B ") to redevelop said "Property" in an effort to
revitalize downtown Port Arthur; and
WHEREAS, the Company desires to acquire the exclusive right
and option to purchase, without becoming obligated to purchase,
the property at an agreed price and under specified terms and
conditions; and
WHEREAS, Digital Workforce Academy has made an offer to the
City of Port Arthur as delineated in Exhibit "C "; and
WHEREAS, the City of Port Arthur and Digital workforce
Academy, Inc. ( "Company ") are herein entering into this contract
to allow an option to redevelop the Sabine Hotel.
e.eabine hotel_optlon
MOW THEREFORE, the City of Port Arthur and the Company
agree, for the consideration expressed in Paragraph 3 of this
Option Contract, that the City hereby grants to Company the
exclusive right and option to purchase the property as described
in Exhibit A, at the price and under the terms set forth below
as follows:
(1) The sales price of the Sabine Hotel is $10,000,
payable to the City of Port Arthur at the
expiration of the Option period.
(2) The Option to purchase property shall commence on
August , 2010 and continue until August _ ,
2011.
(3) This Option is granted in consideration of
Company's payment of the sum of $1,000, payable to
the City of Port Arthur by the commencement date
of the Contract, to be applied to the sales
price of $10,000 at the time of closing.
(4) A percentage of the sales prices will be used for the
securing and updating necessary infrastructure to
accommodate the redevelopment of property.
(5) A percentage of the sales price will be used for the
marketing of the Sabine Hotel and the marketing of
future downtown Port Arthur.
....bin. hotel_option
(6) A one -time extension of the Option may allowed for a
period of six to eight months, if necessary, upon
prior written approval from the Port Arthur City
Council.
(7) If this option or any extension thereof is not
exercised, all sums paid and services rendered to
Company by the City shall be retained by the City
in consideration of granting this option.
(8) Company may exercise this option by providing
written notice of the excise to the City Manager
on or before 5:00 p.m. on August 1, 2011. The
giving of such notice shall create a binding
contract of purchase and sale between the parties
hereto. If the Company fails to exercise this
Option before its expiration, the consideration
paid herewith shall be retained by the City.
(9) If the Company fails to exercise this Option in
accordance with the terms of this contact within
the Option period or any extension thereof, then
the Option to Purchase granted by this Option
contract, and the rights hereunder of the Company,
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shall automatically and immediately terminate
without notice.
(10) The Company may assign this Option with prior
approval fr om the City Council. The assignment
shall be effective as to The Company on written
notice therefore by the City and the Company.
(11) This option Contact executed on the same date
contains the entire agreement between the parties
relating to the option herein granted. Any oral
representations or modifications concerning this
Option Contact shall be of no force and effect,
exception a subsequent modification in writing
approved by the Port Arthur City Council and the
authorized party of Digital Workforce Academy.
(12) In the event of any controversy, claim, or dispute
between the parties hereto, arising out of or
relating to this contract or the breach thereof,
the venue for all legal proceedings shall be in
Jefferson County, Texas.
(13) This Option Contact shall bind and inure to the
benefit of all respective heirs, personal
representatives, successors, and assigns of the
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parties hereto except as hereinabove expressly
provided.
(14) During the option period, the City reserves the right
to terminate this contract in the event it wishes to
enter into an agreement with another developer. This
termination is contingent upon another developer
guaranteeing that it has the ability to redevelop the
Sabine Hotel up to current building codes. This
guaranty could include the following items: a bond, an
irrevocable letter of credit, or cash. In the event
the City does terminate for this reason, Digital
Workforce shall be entitled to reimbursement of
expenses up to $25,000.
(15) Notice can be provided as follows:
CITY OP PORT ARUM
444 4 Street
Port Arthur, TX 77640
ATTN: City Manager
(409) 983 -8101
fitzgibbonseportarthur.net (e -mail address)
DIGITAL WORIPORCR ACADRMY, INC.
710 Stilwell Boulevard
Port Arthur, TX 77640
(409) 982 -0522
mwhiteemrswmanagement.com (e -mail address)
IN MITNES8 MBRA=0P, the parties hereto have executed, or
caused to be executed by their duly authorized officials, this
e.eabine hotel_option
Agreement in two (2) copies, each of which shall be deemed an
original on the date first written above.
SIGNED AND AGREED TO ON this the __ day of
2010.
CITY 01 PORT ARTHUR
EY:
ACKNOWLEDGMENT
THE STATE 01 TUAB 1
1
COUNTY 01 JEFFERSON 1
MORN NE, the undersigned Notary Public, on this day
personally appeared Stephen Fit Citv Manager of the
City of Port Arthur, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me
that he executed the same as the act and deeds of the City of
Port Arthur, for the purposes and considerations therein
expressed, and in the capacities therein stated.
GIVEN WIDER NY HAND AND SEAL 07 OFFICE, this _ day of
20
NOTARY PUBLIC IN AND FOR
THE STATE OF TEXAS
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SIGNED AND AGREED TO ON this the _ day of
, 2010.
DIGITAL WORKFORCE ACADENY, INC.
BYt
ACKNOWLEDGMENT
TES STATE OF TEXAS 1
1
COUNTY OF JEFFERSON f
DEFOEE NE, the undersigned Notary Public, on this day
personally appeared
known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed
the same as the act and deeds of Digital Workforce Academy,
Inc., for the purposes and considerations therein expressed, and
in the capacities therein stated.
GIVEN UNDER MY BAND AND SEAL OF OFFICE, this _ day of
, 20
NOTARY PUBLIC IN AND FOR
THE STATE OF TEXAS
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