Economic Development Corporation Meeting


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  3.       
Meeting Date: 01/10/2022  

AGENDA ITEM:
Discussion and Action to approve the Eighth Amendment to the Ground Lease Purchase Agreement between Little Elm EDC and Little Elm Hula Hut, LLC. (Jennette Espinosa, Executive Director)
DESCRIPTION:
Details of Amendment Eight are as follows:

The agreement has been revised to show that Hula Hut will be eligible to purchase the property, at the same price of One Million and 0/100 dollars, ($1,000,000.00), as indicated in the original agreement, but not until 2033. That will be the 10th year after which Hula Hut will have paid the full 3% of the gross sales to the EDC for the lease obligation. After 2023, should it be necessary to revise the lease percentage below the agreed to 3%, then the timeline for option to purchase would be revised as well. 

Hula Hut’s Option to Purchase:

"At any time after October 1, 2033, at Hula Hut’s sole option, Hula Hut or its successor may, at its option, give written notice to Little Elm EDC that Hula Hut will purchase the Premises from Little Elm EDC for the price of One Million and 00/100 Dollars ($1,000,000) by submitting a real estate sale contract(s) to Little Elm EDC containing the usual provisions set forth in the standard State Bar of Texas Real Estate Sale Contract form, including the obligation of Little Elm EDC to furnish an Owner’s Title Policy at Closing at Little Elm EDC’s expense but expressly excluding any warranty or representation regarding the Premises except the warranty of good and marketable title, free and clear of any lien, mortgage or perfected security interest.  Hula Hut shall agree to close such purchase within thirty (30) days of the full execution of said contract. 
BUDGET IMPACT:
No budget impact for this item unless property is purchased in year 2033.
RECOMMENDED ACTION:
Staff recommends that the Board approve the agreement as presented. 
Attachments
8th Amendment Hula Hut Ground Lease Purchase


    

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