Contract - RRTX Lake Creek Hotel, LP - 12/5/2024 MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding("MOU")is made by and between the City of Round Rock,a
Texas home rule municipal corporation (the "City") and RRTX Lake Creek Hotel, L.P., a Texas
limited partnership ("LCH"), collectively referred to as the"Parties."
RECITALS
WHEREAS,LCH previously entered into an Economic Development Program Agreement
with the City on March 18,2018,providing certain incentives to LCH in consideration for LCH's
investment of$4,5000,000.00 in the construction of an upscale boutique hotel in the City located at
400 Fannin Avenue (the "Hotel"); and
WHEREAS,on November 4, 2022, LCH's Economic Development Program Agreement
was extended through December 31,2023; and
WHEREAS, LCH desires to expand its facilities and develop an event center for guests
utilizing an existing building located on a tract of land adjacent to the Hotel (the"Event Center");
and
WHEREAS,LCH has under contract that adjacent tract consisting of approximately 1.028
acres located at 408 Fannin Avenue(the "Property"); and
WHEREAS,the City desires businesses such as LCH to stay and grow within the City;and
WHEREAS, the City is willing to grant certain incentives to LCH for the successful
development of the Event Center and continued growth of the Hotel; and
WHEREAS, the parties acknowledge that the terms and conditions listed herein are not
legally binding against either party,but merely serve as a memorandum of the current understanding
of the parties;
NOW THEREFORE,the City and LCH agree to work cooperatively and in good faith to
draft and approve future agreements and to develop the Event Center in the manner set forth herein.
ARTICLE I
GENERAL SCOPE OF FACILITY
1.01 The Event Center will be developed utilizing an existing building located on
approximately 1.028 acres at 408 Fannin Avenue adjacent to the Hotel.
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ARTICLE II
LCH'S INTENTIONS
2.01 LCH intends to purchase of the Property.
2.02 LCH intends on selling to the City a portion of the Property adjacent to Brushy Creek
for a bridge landing for the City's trail system.
2.03 LCH intends to develop the Event Center on the Property utilizing the existing
building.
2.04 LCH intends to meet any performance metrics required by the City related to the
Event Center as a condition of the incentives set forth herein.
2.05 LCH intends to comply with all the previous requirements set forth in the March 18,
2018,Economic Development Program Agreement related to the Hotel,including but not limited to,
provision of jobs, maintaining continuous operation of the Hotel and Event Center, minimum
standards of the Hotel, compliance with reports requested by the City, and compliance with State
laws.
ARTICLE III
CITY INTENTIONS
3.01 In consideration of LCH performing as set forth in Article II above,the City intends
to enter into a new economic development incentive agreement to include provisions as set forth
below.
3.02 The City will provide LCH with a loan in an amount not-to-exceed$2,000,000 to be
utilized for the Event Center and purchase of Property, in the form of a real estate lien note at the
Secured Overnight Financing Rate (SOFR) plus one percent(1%), secured by a first lien deed of
trust on the Property.The loan must be paid back in full to the City within four(4)years,and upon
timely repayment of the loan and successful performance of all required performance metrics, all
interest will be forgiven by the City.
3.03 The City intends to enter into a Texas Local Government Code Chapter 380
Economic Development Program Agreement enforceable without annual appropriations, to the
extent allowed by applicable law. Said Agreement will set forth the terms of the loan described in
3.02 above and provide for annual performance based program payments to LCH for calendar years
2024 through 2029 in amounts equal to seventy-five percent(75%)of the Hotel Occupancy Tax and
Property Tax paid by LCH for each of those calendar years.
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ARTICLE IV
LEGAL EFFECT OF MOU
4.01 This MOU is intended to provide an outline of the current understanding of the
parties hereto and is not intended to legally bind the parties to the terms and conditions stated herein.
The parties,however,agree that the terms and conditions stated herein are reasonable and provide an
outline for future actions by the parties.
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Executed and effective this 5th day of December, 2024.
CITY OF ROUND ROCK,TEXAS
By:
. A M
Cr ig Mor r
ayor
RRTX LAKE CREEK HOTEL,L.P.
By:
11/26/24
Bree Carrico, Manager
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