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Approval of the Sublease Agreements Between Suntex and the City of Lewisville; and Authorization for the City Manager, or Her Designee, to Execute the Agreements.
request
ADMINISTRATIVE COMMENTS:
In November 2024, the United States Army Corps of Engineers (USACE) executed Lease No. DACW63-1-24-0613 for Park and Recreational Areas on Lewisville Lake with the City of Lewisville to replace Lease No. DACW63-1-00-0820 upon expiration on April 14, 2025. LJH was the concessionaire for Eagle Point Marina under the former lease. The City held a competitive process and chose a different concessionaire for the future operations of the marina area. The chosen concessionaire was Matthew Southwest in partnership with Suntex. Suntex has been working with LJH since 2024 to negotiate a buy out of its current operations at the marina and some of the uplands area that provide complimentary services. To faciliate a smooth transaction between Suntex and LJH, the City Coucil approved ratification of two extensions with LJH. The first extension was approved through October 2025, and the second extension was approved through January 2026. Over the past six months, the City has worked closely with Suntex on two sublease agreements. One is a long-term agreement for the redevelopment and operation of the marina. The initial term of the proposed long-term agreement ends on April 14, 2050, with two optional 10-year extensions, and one optional 5-year extension. The other is a short-term, 3-year agreement for management of the uplands while Matthew Southwest identifies a developer and operator for the lodge, cabins and restaurants approved in the Lake Park Master Plan.
RECOMMENDATION:
That the City Council approve the agreements and authorize the City Manager, or her designee, to execute the agreements as set forth in the caption above.