Title
Resolution - A Resolution to Consider an Addendum to the Water Park Ground Lease with Mansfield Family Entertainment, LLC to Allow for the Construction of Additional Infrastructure at Hawaiian Falls Water Park Mansfield
Requested Action
Consider addendum to Water Park Ground Lease
Recommendation
Approve addendum to Water Park Ground Lease
Description/History
City Council approved a Water Park Ground Lease Agreement with Mansfield Family Entertainment, LLC on April 24, 2007 for the operations of Hawaiian Falls Water Park. On November 19, 2007, City Council approved the First Amendment to the ground lease, recognizing Texas Credit Union's $2 million loan to MFE in order for MFE to make a 2 million capital contribution to the water park project. In the First Amendment it states that City must grant permission to MFE to increase the loan amount. MFE has requested permission from the City to increase the loan amount by $1 million bringing the total loan amount to $3 million.
Justification
The Water Park Ground Lease Agreement states that MFE must make $1 million worth of improvements sometime in the first seven years. MFE is requesting the city to raise the credit limit on the loan in order to make the additional $1 million dollar improvement that will include a new water park attraction ride and will keep MFE in compliance with the Water Park Ground Lease Agreement.
Hawaiian Falls experienced a small "sophomore slump" during the 2009 summer season which is typical in the second year for a water park. By adding a new attraction, season pass sales and gate sales should continue to improve and keep the park exciting.
A concept plan for the new attraction ride and location was not finalized in time to include in the council packets. MFE has assured staff that a concept plan will be ready by the Council meeting on Oct. 26, 2009.
Funding Source
N/A
Prepared By
Shelly Lanners, Director, Parks & Community Services