Title
Resolution - Consider a Resolution to Approve Consent to a Transaction Allowing Source Horizon, LLC to Become the Controlling Owner of Horizon Family Holdings, LLC, Parent Company of Mansfield Family Entertainment, LLC, Operator of the Hawaiian Falls Water Park
Requested Action
Consider approval of consent to the transaction
Recommendation
Approve Resolution
Description/History
In 2007, City Council approved a ground lease agreement with Mansfield Family Entertainment, LLC (MFE) for the operations of Hawaiian Falls Water Park. Horizon Family Holdings, LLC is the parent company of MFE and is selling 100% of the interest holdings of Horizon Family Holdings to Source Horizon, LLC a Georgia Limited Liability Company.
Justification
In section 18.3 of the ground lease, the City was granted a right to acquire the rights under the lease on the same terms and conditions as offered in connection with any assignment to a non-affiliate. The consent from the City acknowledges that the transaction does not constitute an assignment pursuant to Section 18 of the lease and that it has no right of first refusal.
The transaction will allow the current parent company of MFE (Horizon Family Holdings) to sell to a new parent company (Source Horizon) without disruption of the ground lease with MFE. There will be no operational changes to the water park and the city still has an agreement with Mansfield Family Entertainment.
Funding Source
N/A
Prepared By
Shelly Lanners, Director, Community Services
817-276-4265