R-12-11-08-H2 - 11/8/2012RESOLUTION NO. R -12-11-08-H2
WHEREAS, Round Rock RE Holdings, LLC ("RE Holdings") specializes in the treatment of
medically complex patients who require acute care hospital services and rehabilitation, and
WHEREAS, RE Holdings has expressed to the City of Round Rock ("City") its desire to
construct a 59,584 square foot long-term acute care hospital thereon, with a minimum of 50 beds, to be
located on a tract of land containing 4.089 acres in the City of Round Rock, and
WHEREAS, §380.001 Local Government Code provides that a municipality may establish an
economic development program ("Program") to promote local economic development and to stimulate
business and commercial activity in the municipality, and
WHEREAS, the City Council has determined that the Program described in Exhibit "A" will
meet the goals set forth in said §380.001 and will be of mutual benefit to both parties, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS,
That the City offers to RE Holdings a §380.001 Program in exchange for RE Holdings'
construction of a 59,584 square foot long-term acute care hospital thereon, with a minimum of 50 beds,
to be located on a tract of land containing 4.089 acres in the City of Round Rock, and
BE IT FURTHER RESOLVED
That the offer of the Program shall be as generally outlined in Exhibit "A" attached hereto and
incorporated herein for all purposes.
The City Council hereby finds and declares that written notice of the date, hour, place and
subject of the meeting at which this Resolution was adopted was posted and that such meeting was
open to the public as required by law at all times during which this Resolution and the subject matter
hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
O:\wdox\SCCInts\0112\ 1204\MUNICIPAD00261374DOC
EXHIBIT A
ECONOMIC DEVELOPMENT PROGRAM
The terms of the §380.001 Economic Development Program to be offered to Round Rock RE
Holdings, LLC ("RE Holdings") in exchange for RE Holdings' agreement to construct a 59,584 square
feet long term acute care hospital (the "Facility") in the City of Round Rock are as generally outlined
below:
RE Holdings obligations:
1.1 Purchase of Property. RE Holdings agrees to purchase a tract of land containing
approximately 4.089 acres, (the "Property").
1.2 Construction of Facility. RE Holdings agrees to construct, develop and operate the
Facility on the Property in conformance with the City's development regulations.
2. City's obligations:
2.1. Make Economic Development Payment. In consideration of RE Holdings' compliance
with the aforesaid obligations, the City agrees that no less than forty-five (45) days after
the issuance by the City of a certificate of occupancy for the Facility, City shall pay to
RE Holdings a payment equal to the full amount of any and all rollback taxes assessed
by the City as a result of the purchase of the Property by RE Holdings or its assignee.
3. The terms and provisions of this Program will be set out in more detail in the Economic
Development Program Agreement of even date herewith.
3
RESOLVED this 8th day of November, 2012.
� , 1
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
ROUND ROCK, TEXAS City Council Agenda Summary Sheet
PURPOSE PASSION. PROSPERITY.
Item No. H2.
Consider a resolution adopting a Chapter 380 Economic Development Program for Round
Agenda Caption: Rock RE Holdings, LLC.
Date: November 8, 2012
Department: Administration Department
Staff Person making presentation: Steve Norwood
Ma
Item Summary:
A Texas Local Government Code 380 Agreement to be considered by the City Council on a proposed acute care
hospital. RE Holdings (a partnership between a developer and hospital operator), based in Dallas, Texas, specializes
in the treatment of medically complex patients who require acute care hospital services and rehabilitation for an
extended period of time. This group currently owns and operates sixteen freestanding and "hospital -in-hospital"
long-term acute care ("LTAC") facilities in Texas, Louisiana, Arizona and West Virginia and manages four hospital -in-
hospital facilities in Cleveland, Ohio. A new, approximately 60,000 -square foot long term acute hospital is proposed
for this site. The hospital will consist of 50 beds. The 380 Agreement is needed to reimburse RE Holdings roll back
taxes.
Cities are authorized to establish reinvestment zones pursuant to Texas Local Government Code Section 380.001.
The purpose of this code is to provide for the administration of one or more programs, including programs for
making loans and grants of public money and providing personnel and services of the municipality, to promote state
or local economic development and to stimulate business and commercial activity in the municipality.
Cost: N/A
Source of Funds: N/A
Recommended Action: Approval