Title
Resolution - A Resolution for Approval of Amendment Number Three to the Water Park Ground Lease and Operating Agreement Between Mansfield Family Entertainment, LLC (MFE) and the City of Mansfield for the Hawaiian Falls Water Park
Requested Action
Approve Amendment Number Three to the Water Park Ground Lease and Operating Agreement for Hawaiian Falls
Recommendation
Approve Amendment Number Three
Description/History
City Council approved a Water Park Ground Lease Agreement with Mansfield Family Entertainment, LLC (MFE) 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 Texans Credit Union's $2 million loan to MFE in order for MFE to make a $2 million capital contribution to the water park project. On November 14, 2011 City Council approved Amendment Number Two to the ground lease allowing certificates of obligation to fund a $3 million expansion and to have MFE fund 20% of the expansion costs over 20 years and also allowed an increase in annual lease payments for the term of the contract. On January 23, 2012 City Council approved an Amendment to Amendment Two to the ground lease allowing one of the new three attractions to be a "Colorado Drop Slide" instead of a "Master Blaster" ride.
Justification
Amendment Number Three to the ground lease will allow MFE to acquire a new loan from Capital One, National Association to MFE's parent company, Horizon Family Holdings, LLC (HFH) and pay off the original loan of $2 million from Texans Credit Union and provide funding for other financial accommodations to HFH.
Funding Source
N/A
Prepared By
Shelly Lanners, Director, Community Services
817-276-4265