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Ratification of the Extension Concession Agreement Between LJH, LTD. and the City of Lewisville.
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. This agreement extends the terms of the original concession agreement with LJH but excludes the property leased to Sneaky Pete’s and its operations, allowing LJH to continue operation of the marina and uplands area during the term of the agreement. The City held a competitive process and chose a different concessionaire for the future operations of the marina area. The planned marina operator, Suntex, has been negotiating a buy-out of the marina business and improvements from LJH but due to the complexity of the deal it was not feasible to close before the term of the original concession agreement with LJH expired. This short-term agreement with LJH is needed to allow the parties the ability to close the deal while maintaining continuity of operations. It is contingent upon LJH continuing to work toward the close of the Suntex purchase transaction. Accordingly, the term of this agreement expires on the earlier of October 14, 2025, or the closing date of the purchase agreement between Suntex and LJH.
RECOMMENDATION:
That the City Council approve the ratification of the agreement as set forth in the caption above.