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File #: 22-5202    Version: 1 Name:
Type: Financial Surety Status: Passed
File created: 8/19/2022 In control: Commissioners Court
On agenda: 9/13/2022 Final action: 9/13/2022
Title: Request for approval of execution of Estoppel and Agreement from GWR Webster LLC's Lenders.
Attachments: 1. 22-5202.pdf
Department: Economic Equity and Opportunity
Department Head/Elected Official: Diana Ramirez, Executive Director

Regular or Supplemental RCA: Regular RCA

Type of Request: Financial Surety

Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A

MWDBE Contracted Goal (if applicable): N/A
MWDBE Current Participation (if applicable): N/A
Justification for 0% MWDBE Participation Goal: N/A - Goal not applicable to request

Request Summary (Agenda Caption):
Request for approval of execution of Estoppel and Agreement from GWR Webster LLC's Lenders.

Background and Discussion:
On May 19, 2020, Commissioners Court approved a Hotel Occupancy Tax (HOT) Rebate Agreement with GWR Webster LLC (GWR), a Delaware limited liability company. This agreement allows for a rebate of 2% of the hotel occupancy tax to GWR, which equals to 100% of the total amount of HOT generated by the project and collected by the County under Texas Tax Code Chapter 352 for a period of 10 years.

This action facilitates GWR Webster LLC to build a Great Wolf Lodge 450-500 room resort and indoor water park in Webster, Harris County, Texas. The project's anticipated investment is $200 million with a required minimum value increase of $75 million and the creation of 350 full time/part time equivalent jobs to meet the requirements of the HOT Rebate Agreement. GWR anticipates opening the resort and water park in 2024. The project site is located in Harris County Precinct 2.

Currently, GWR is securing financing to implement the project. As such, lenders for GWR LLC include J P Morgan and VICI Lendco LLC, of New York City, New York. Their counsel Winstead PC, of Dallas, Texas, has now forwarded to Harris County, an Estoppel and Agreement form (Estoppel Agreement) which is custom and practice in commercial real estate, prior to lenders funding construction. The projected income stream of payments of the rebated funds from County have been calculated by the Lenders i...

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