PILLAR: Growing
AGENDA DATE: June 24, 2026
COUNCIL DISTRICT(S):|910|DEPARTMENT: Office of Economic Development
PRIORITY: N/A
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SUBJECT
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Authorize the acceptance or rejection of an offer received from TEOF Hotel LP ("Borrower"), a Texas limited partnership to (1) pay the City $5,707,000 (plus any pertinent accrued interest) and the City's legal fees upon the sale and title closing of the Lorenzo Hotel ("Property") located at 1011 South Akard Street, owned by Borrower, in exchange for the release of the City of Dallas lien on the Property; (2) execute an agreement not to pursue any additional funds owed by Borrower or Lawrence E. Hamilton, III, as trustee of the Lawrence E. Hamilton Living Trust ("Guarantor") to the City approved as to form by the City Attorney; and (3) execute any other documents deemed necessary by the U.S. Department of Housing and Urban Development (HUD) and/or the City Attorney's Office (the execution of all such and aforementioned documents contingent on HUD's final approval of terms) - Financing: This action has no cost consideration to the City (see Fiscal Information)
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BACKGROUND
The U.S. Department of Housing and Urban Development (HUD) provides communities with access to financing for large-scale community or economic development projects through the Section 108 Loan Guarantee Program (Section 108). Under Section 108, the City pledges current and future Community Development Block Grant funds as collateral for the guaranteed loan.
On January 14, 2015, the City Council via Resolution No. 15-0147 authorized an $11,000,000.00 Section 108 Loan agreement with HUD, the source of funds which was used to enter into a separate loan agreement between the City and TEOF Hotel LP ("Borrower") to rehabilitate the blighted and vacant Plaza Hotel structure at 1011 South Akard Street into a new, 12-floor, 237-room hotel which currently operates as the Lorenzo Hotel ("Pro...
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