DATE: September 17, 2018
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Kristine Tallent, Assistant City Administrator/CFO
Shauna Billingsley, City Attorney
SUBJECT:
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Discussion of Transfer of Operating Agreement for the Cool Springs Conference Center.
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the pending transfer of the operating agreement for the Cool Springs Conference Center to Chartwell Hospitality.
Background
In 1997, the City of Franklin in partnership with Williamson County constructed the Cool Springs Conference Center adjacent to the adjoining Marriott Cool Springs Hotel. In 2013, the City and Williamson County extended the term of the Conference Center Operating Agreement with the hotel owner through October 15, 2027 (COF Contract No. 2013-0041). Per terms of this agreement, the hotel owner may transfer its right to operate the conference center to a new hotel owner upon sale of the building.
Currently, the hotel is owned by Crowe Holdings with Davidson Hotels serving as the operating agent for both the hotel and the conference center. Earlier this year, Crowe Holdings placed the hotel for sale. The successful bidder was a locally based firm, Chartwell Hospitality, which will own 7 hotels in Williamson County upon closing of this purchase. It is Chartwell’s intention to manage the hotel and conference center internally, without the hiring of an outside management company.
Financial Impact
There is no financial impact to the City from the assignment of the Conference Center Operating Agreement to Chartwell Hospitality. Terms of the 1997 Operating Agreement remain in effect through October 15, 2027.
Recommendation
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Staff recommends approval of the transfer as allowed under terms of the 1997 Operating Agreement.