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Ordinance No. 15,174 ORDINANCE NO. 15,174 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A NEW CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENT WITH SAN JACINTO RETAIL ASSOCIATES, LLC; AUTHORIZING REBATES OF CERTAIN SALES TAX REVENUE RECEIVED BY THE CITY FROM SALES BY QUALIFIED TENANTS; MAKING OTHER PROVISIONS RELATED THERETO; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ****************************************************************************** BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown hereby authorizes and directs the City Manager to execute and the City Clerk to attest to a new Chapter 380 Economic Development Agreement with San Jacinto Retail Associates, LLC. A copy of the agreement is attached hereto, marked Exhibit A," and made a part hereof for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 25"' day of August, 2022. NDON CAPETILLO, ayor ATTEST: �o�epv roW�,or�' o, eN s o ANGELA ACKSON, Cit dirk a � •� e no yn APPROVED A S T FORM: SCOTT LEM ND, City Attorney EXHIBIT "A" 2022 ECONOMIC DEVELOPMENT AGREEMENT STATE OF TEXAS § COUNTY OF HARRIS § THIS AGREEMENT (the "Agreement") by and between the City of Baytown, a Texas home-rule municipal corporation("City")and San Jacinto Retail Associates,LLC,a Texas limited liability company ("Developer"), (collectively referred to as the "Parties" and individually as a "Party") is entered into on this day of , 2022 (the "Effective Date") and supersedes all other agreements previously entered into by the Parties, including, without limitation, the Economic Development Agreement between the parties dated July 2, 2015 (the "2015 Agreement"), and all amendments to the 2015 Agreement. WHEREAS, the Parties have mutually terminated the 2015 Agreement, and all amendments to the 2015 Agreement,and agreed to release any claims each might have against the other for any breach of the 2015 Agreement; and WHEREAS, the Parties have entered into this Agreement as the sole and only agreement concerning the subject; and WHEREAS, the purpose of this Agreement is to set out the terms under which the City will provide certain economic incentives to the Developer in exchange for the Developer's agreement to include within its development certain physical features and tenants that the City believes will be beneficial to its citizens; and WHEREAS, the City Council finds that the provision of economic incentives under this Agreement will promote local economic development and stimulate business and commercial activity in the City; and NOW,THEREFORE,for and in consideration of the promises and the mutual agreements set forth herein, the Parties hereby agree as follows: ARTICLE I DEFINITIONS 1.01 The following words, when used in this Agreement, shall have the meanings ascribed to them in this article: "Project" means the retail center that Developer proposes to construct and operate on property it owns in the City in the vicinity of the former San Jacinto Mall, which property is depicted on the site plan attached as Exhibit A to this Agreement. Developer, in its sole discretion,may elect to use property which is adjacent to the Project for retail purposes and such property shall be automatically included in the definition of "Project" as to such portions of such adjacent property actually used for retail. 1 "Qualifying Tenant" means a tenant in the Project that meets the requirements described in Sections 3.03 and 3.04 of this Agreement. "Sales Taxes Collected"shall mean, for each Qualifying Tenant: (1) the actual amount of the lqo sales and use taxes authorized by Section 321.101(a) of the Texas Tax Code and received by the City for sales at the Qualifying Tenant's leasehold in the Project, including those monies received after the collection period because of delinquency or protest; and (2) the actual amount of the 0.50 o sales and use taxes authorized by Section 377.101 et seq. of the Texas Local Government Code and received by the Baytown Municipal Development District for sales at the Qualifying Tenant's leasehold in the Project, including those monies received after the collection period because of delinquency or protest. (3) Sales Taxes Collected shall not include amounts received by the City or the District but later refunded to the State because it was paid in error. "Sales Tax Rebate Cap" shall mean an aggregate amount of Sales tax rebates paid to the Developer, which shall not exceed$16,200,000. ARTICLE II. PROJECT REQUIREMENTS 2.01 Project Elements. To qualify for development incentives from the City under this Agreement,the Developer must: a) Construct the Project in substantial compliance with the site plan attached to this Agreement as Exhibit A; b) Include within the initial development of the Project at least three full- service restaurants with at least one of the three providing a fine dining experience such as, but not limited to, Carrabba's restaurant concepts; Perry's restaurant concepts; Pappas restaurant concepts; similar restaurant concepts,or other full-service sit-down restaurants. ARTICLE III. INCENTIVES 3.01 Incentives generally. The City agrees to provide financial incentives to the Developer in the form of rebates of certain sales tax revenue received by the City from sales by Qualifying Tenants (the "Sales Tax Rebate"), as provided in more detail below, but only if the Developer fully complies with the requirements in Section 2.01, above. 3.02 City's objectives. The City has determined the characteristics of potential tenants whose presence in the Project would be substantially beneficial to its citizens and justify the payment of an incentive to assist the Developer in securing such tenants. Generally, the City has determined that its citizens will substantially benefit from the presence of tenants that provide types, brands, or qualities of merchandise or services that are not currently offered within the City,that are characteristic of a high-end shopping destination, or that are otherwise likely to draw shoppers from a wider market area. A non-exclusive list of Qualifying Tenants is included in Exhibit B attached to this Agreement. 3.03 Qualifying Tenants defined. A Qualifying Tenant is a tenant of the Project that: a) is listed as a Qualifying Tenant on Exhibit B; or b) has been determined to be a Qualifying Tenant under the procedure described in section 3.04. Developer shall provide the City with a list of tenants operating within the Project in order to verify the Qualifying Tenants used to determine the amount of incentives on or before January 13`h of each calendar year during the Term. The City shall certify Developer's list of Qualifying Tenants operating within the Project by January 15" of each calendar year during the Term. Notwithstanding the foregoing, Developer may from time to time,promptly notify the City of any new leases in order to supplement the certified list of Qualified Tenants and the City shall certify such supplemental list within thirty (30) days after receipt of any supplemental tenant list from Developer. In addition,the Developer shall promptly notify the City if any Qualifying Tenant ceases operating its business in the Project. 3.04 Determination of Additional Qualifying Tenants Incentive. For any prospective tenant of the Project that is not listed as a Qualifying Tenant on Exhibit B, the Developer may apply in writing to the City Manager for a determination that the prospective tenant is a Qualifying Tenant. With respect to each such application, the City Manager shall determine, in his or her sole, but reasonable, discretion, whether the tenant is a Qualifying Tenant and shall provide the Developer with written notice of that determination. The City Manager shall provide such determination within thirty (30) days after receipt of any request, and the City Manager's failure to provide such determination within thirty (30) days shall be deemed a determination that the tenant is a Qualifying Tenant. 3.05 Additional incentives for prospective tenants. In exceptional circumstances, the City will consider providing additional cash payments or other incentives to Developer for the benefit of a prospective tenant as an incentive to locate within the Project. 3.06 Prohibited Uses. Developer agrees that it will not lease to tenants within the Project for any use: (a)listed on Exhibit C attached to this Agreement or(b)prohibited in the Code of Ordinances, Baytown, Texas (the "Code," and including all codes adopted therein, and as amended, which are uniformly applied throughout the zoning district in which the Project is located);provided,however,in no event shall the Code be amended such that the Project is targeted for any zoning changes which adversely affect the operation and development of the Project. I ARTICLE IV SALES TAX REBATES 4.01 Sales Tax Rebate. For each Qualifying Tenant leasing space at the Project, the City shall,during the term of this Agreement,pay to Developer an amount equal to the Sales Taxes Collected with the aggregate amount of such payments limited to the Sales Tax Rebate Cap. The payments shall be made in quarterly installments as described below. Developer understands and agrees that the City is not certifying or otherwise encumbering any funds for the Sales Tax Rebate other than the Sales Taxes Collected and does not have any monies for the same. Developer agrees not to make any claims against the City for any monies due pursuant to this Section 4.01 other than those from the Sales Taxes Collected. The City shall pay to Developer each quarterly installment of the Sales Taxes Collected up to the Sales Tax Rebate Cap within thirty (30) days following receipt of information necessary to determine the quarterly Sales Taxes Collected at the Project from the Texas Comptroller of Public Accounts during the applicable calendar quarter. City agrees to use good-faith and commercially reasonable efforts to obtain the necessary information to make such determination within a reasonable time following the end of each calendar quarter. 4.02 Leasing Information. For each Qualifying Tenant leasing space at the Project,the Developer shall upon request provide the City with a redacted copy of the relevant portions of the lease from which the following information can be determined: a) the name of the tenant; b) the location of the lease space within the Project; c)the total number of square feet leased. 4.03 Sales Tax Information. To determine the quarterly Sales Taxes Collected and the quarterly installments of the Sales Tax Rebate due to Developer, the City shall declare this Agreement to be a"Revenue Sharing Agreement"to obtain otherwise confidential tax information, pursuant to Section 321.3022 of the Texas Tax Code. City agrees to not disclose any information obtained from the State of Texas under this section,to the extent permissible under the Texas Tax Code. If the City receives a public information request for the information received by the City from the State of Texas under this subsection, the City shall timely notify the Developer of the request and the Developer and or the applicable tenant shall have the obligation to make arguments to the Texas Attorney General as to why the information should not be disclosed. The City will abide by the opinion of the Texas Attorney General or release the information if no opinion is timely requested. ARTICLE V. MISCELLANEOUS PROVISIONS 5.01 Default; Remedies. A default under this Agreement shall occur upon the failure of a Party to perform any obligation or act, or keep any covenant, required of such Party by the provisions of this Agreement, or a violation or breach of any of the terms or provisions of this Agreement by a Party. Any Party to this Agreement that believes the other Party to this Agreement has defaulted in the performance of any condition,term,covenant or obligation owed to that Party under this Agreement shall give written notice of the default to the defaulting Party, specifying in detail the provision or provisions of this Agreement that have allegedly been breached and what 4 specific action must be taken to cure or correct the default. Should the Party receiving the notice fail to cure the default within thirty(30)days or such longer period as may be allowed by the non- breaching Party,the non-breaching Party shall have the right to enforce this Agreement by exercise of any and all legal and/or equitable remedies to which such Party is entitled under this Agreement or under applicable laws, including, without limitation, commencing an action for specific performance, breach of contract or termination of this Agreement. No waiver of any default shall be construed as a waiver of any preceding or succeeding default of the same or any other covenant or condition of this Agreement. Notwithstanding the foregoing or anything to the contrary, it is expressly understood and agreed that the City's sole remedy with respect to any Developer default is the withholding of the economic development incentive described in Article IV hereinabove throughout any period in which the Developer is in default beyond all applicable notice and cure periods. 5.02 Separate Status. None of the terms or provisions of this Agreement shall be deemed to create a partnership between or among the Parties in their respective businesses or otherwise, nor shall it cause them to be considered joint ventures or members of any joint enterprise. 5.03 Construction and Interpretation. a. Whenever required by the context of this Agreement, (i) the singular shall include the plural, and vice versa, and the masculine shall include the feminine and neuter genders,and vice versa, and(ii) use of the words"including," "such as,"or words of similar import, when following any general term, statement or matter, shall not be construed to limit such statement, term or matter to specific terms, whether or not language of non-limitation,such as"without limitation,"or"but not limited to," are used with reference thereto,but rather,shall be deemed to refer to all other items or matters that could reasonably fall within the broadest scope of such statement, term or matter. b. The captions preceding the text of each article and section of this Agreement are included only for convenience of reference. Captions shall be disregarded in the construction and interpretation of this Agreement. Capitalized terms are also selected only for convenience of reference and do not necessarily have any connection to the meaning that might otherwise be attached to such term in a context outside of this Agreement. C. This Agreement may be executed in several counterparts, each of which shall be deemed an original. The signatures to this Agreement may be executed and notarized on separate pages, and when attached to this Agreement shall constitute one(1)complete document. 5.04 Assignability. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors in interest and permitted assigns. Neither Party may assign this Agreement without the prior written consent of the other Party(which consent shall not be unreasonably withheld, conditioned or delayed) and any such prohibited assignment shall be void. Notwithstanding the foregoing, without obtaining the consent of the City, Developer shall 5 be permitted to assign all or a portion of this Agreement(including the right to receive payments) to: (i)an affiliate,subsidiary or related party of Developer;(ii)a lender or mortgagee of Developer in connection with financing relating to the Project; and(iii) following the earlier of five(5)years after the Effective Date or substantial completion of the Project, any person or entity succeeding to all or substantially all of Developer's ownership interest in the Property,subject to such assignee in any of such events assuming all of Developer's obligations hereunder in writing and notice of such assignment being provided to the City promptly following the date of such assignment. 5.05 Severability. If any provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction,the entire Agreement shall not be void;but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the Parties. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement in a mutually acceptable manner so as to affect the original intent of the Parties as closely as possible to the end that the transactions contemplated hereby are fulfilled to the extent possible. 5.06 Complete Agreement. This Agreement represents the complete agreement of the Parties with respect to the subject matter hereof and supersedes all prior written and oral matters related to this Agreement,including,but not limited to,the 2015 Agreement and the Amendments, which are hereby repealed in their entireties. Any amendment to this Agreement must be in writing and signed by all Parties hereto or permitted or approved assignees. 5.07 Exhibits. Exhibits "A" through "C" are attached to this Agreement and are incorporated herein by reference and expressly made part of this Agreement as if copied verbatim. 5.08 Notice. Any notice or demand, which any Party is required to or may desire to serve upon the other,must be in writing,and shall be sufficiently served if(i)personally delivered, (ii) sent by facsimile, (iii) sent by registered or certified mail, postage prepaid, or (iv) sent by commercial overnight carrier,and addressed to: If to the Cam: City of Baytown Attn: City Manager P.Q. Box 424 Baytown,TX 77522 with a copy to: City of Baytown Attn: City Attorney P.O. Box 424 Baytown,TX 77522 If to Developer: San Jacinto Retail Associates, LLC c/o Fidelis Realty Partners, Ltd. Attn: Alan Hassenflu 6 4500 Bissonnet Street, Suite 200 Bellaire,TX 77401 with a copy to: Fidelis Realty Partners, Ltd. Attn: General Counsel 4500 Bissonnet Street, Suite 200 Bellaire,TX 77401 or such other address or addresses of which any Party may be notified in writing by any other Party to this Agreement. Such notice shall be deemed to have been served(i)two(2)business days after the date such notice is deposited and stamped by the U.S. Postal Service, except when lost, destroyed, improperly addressed or delayed by the U.S. Postal Service, or (ii) upon receipt in the event of personal service, or (iii) the first business day after the date of deposit with an overnight courier, except when lost, destroyed or improperly addressed, or(iv)the date of receipt by facsimile(as reflected by electronic confirmation); provided, however, that should such notice pertain to the change of address to either of the Parties hereto,such notice shall be deemed to have been served upon receipt thereof by the Party to whom such notice is given. 5.09 Force Majeure. In the event any Party is rendered unable, wholly or in part, by force majcure to carry out any of its obligations under this Agreement, it is agreed that on such Party's giving notice and full particulars of such force majeure in writing to the other Party as soon as possible after the occurrence of the cause relied upon, then the obligations of the Party giving such notice,to the extent it is affected by force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be extended for the following periods: a. up to a maximum of ten (10) business days for payment obligations under this Agreement,or b. for all other obligations,the time period a Party is prevented from performing such obligations hereunder due to a force majeure. The term"force majeure"as used herein shall include, but not be limited to, acts of God, strikes, lockouts or other industrial disturbances, acts of the public enemy,war, blockades, insurrections, riots, landslides, lightning, earthquakes, fires, storms, floods, washouts, droughts, tornadoes, hurricanes, arrests and restraints of governments and people, explosions, breakage or damage to machines or pipelines and any other inabilities of either Party not within the control of the Party claiming such inability,which by the exercise of due diligence and care such Party could not have avoided; provided, however, neither the pandemic nor the financial inability of a Party to make any payment due under this Agreement as and when due shall be a force majeure. 5.10 Forum Selection. This Agreement and the relationship between the Parties shall be governed and interpreted under the laws of Texas without regard to any conflict of laws provision. Venue for any suit arising out of any relationship between the Parties shall exclusively 7 be the appropriate court in Harris County, Texas. Developer specifically consents to and waives any objections to personal jurisdiction in Harris County, Texas. 5.11 Appointment of Representatives. To further the commitment of the Parties to cooperate in the implementation of this Agreement, the Parties shall designate and appoint a representative to act as a liaison between the Parties. The initial representative for the City shall be the City Manager or his designee (the"City Representative"), and the initial representative for Developer shall be Alan Hassenflu or his designee (the "Developer Representative"). The representatives shall be available at all reasonable times and places to discuss and review the performance of the Parties to this Agreement and the development of the Property pursuant to the Site Plan. 5.12 Effective Date. This Agreement shall be binding and take effect only upon all Parties' signatures hereto, attachment of all required exhibits, and receipt by the Parties of a fully executed copy hereof. For the purposes of timetables provided in this Agreement, the Effective Date shall be the date first above written. 5.13 Preamble. The findings of fact,recitations and provisions set forth in the preamble to this Agreement are true and are adopted and made a part of the body of this Agreement,binding the Parties hereto,as if the same were fully set forth herein. 5.14 Representation of Authority. The City represents and warrants to Developer that it is duly authorized and empowered to enter into this Agreement, subject to the terms and conditions contained therein,and has the legal authority to make a grant to Developer as provided in this Agreement. Developer represents and warrants that it is duly authorized and empowered to enter into this Agreement, subject to the terms and conditions contained herein, and is a proper party to this Agreement. 5.15 Legal Contest. This Agreement is entered into in accordance with applicable law as understood by the Parties. In the event any part, provision or paragraph thereof shall become unenforceable by reason of judicial decree or determination, the Parties hereto mutually agree to the extent possible to ensure that all other provisions of the Agreement, including the intent of the Agreement, be honored and performed. 5.16 Economic Development Incentives Constitute a Program. This Agreement constitutes an economic development program to promote state or local economic development and to stimulate business and commercial activity in the City pursuant to Article 111, Sec. 52-a, Texas Constitution and Chapter 380,Texas Local Government Code. 5.17 Estoppel Certificates. At the request of a Party, the other Party shall execute and deliver to the requesting Party an estoppel certificate stating that this Agreement is in full force and effect and that to such Party's knowledge and belief,there are no defaults by any Party(or that certain defaults exist), as the case may be, under this Agreement. 5.18 Time of the Essence. Time is of the essence in the performance of each and every duty,obligation and covenant imposed in this Agreement. The Parties will make every reasonable effort to expedite the subject matters hereof and acknowledge that the successful performance of this Agreement requires their continued cooperation. 8 5.19 Unconditional Obligations. Except as otherwise provided herein,the obligations of the Parties set forth in this Agreement shall be absolute and unconditional during the term of this Agreement. Neither the City nor Developer will suspend or discontinue any payments or services required in this Agreement or will terminate this Agreement for any cause, including. without limiting the generality of the foregoing, the failure of the City or Developer to perform and observe any agreement,whether express or implied,or any duty,liability,or obligation arising out of or connected with this Agreement. 5.20 Term. Unless earlier terminated, the Initial Term of this Agreement shall remain in full force and effect for 13 years from the effective date (the "Initial Term"). The Initial Term may be extended for an additional 2-year period upon approval by both parties (the "Extended Term"). The Initial Term, together with the Extended Term, if any, shall be referred to herein as the"Term"). The Parties have executed this Agreement to be effective as of the Effective Date. CITY: THE CITY OF BAYTOWN, a Texas home-rule municipal corporation By: RICHARD L. DAVIS, City Manager ATTEST: By: ANGELA JACKSON, City Clerk APPROVED AS TO FORM: By: - - SCOTT LEMOND,City Attorney 9 DEVELOPER: SAN JACINTO RETAIL ASSOCIATES, LLC, a Texas limited liability company By: FidOak SJM Associates, LLC, a Texas limited liability company, its Manager By: FRP San Jacinto Retail Associates,LLC, a Texas limited liability company, its Manager j �g9a` By: - �� Alan se , P sident ATTEST: By: Jlenn E. Airola / Executive Vice President 10 LIST OF EXHIBITS: Exhibit "A" - Site Plan Exhibit "B" - Qualifying Tenants Exhibit "C" - Prohibited Uses 11 EXHIBIT A SITE PLAN OF PROJECT *Developer anticipates initial development of approximately 450,000 square feet in substantial compliance with the site plan. **Developer shall include a central gathering place comprised of greenspace and hardscaping in at least 950 o of the area identified as"Pelican Green"on the attached Site Plan. [Site Plan attached on next page] Exhibit A-1 interstate 10 ® C Lfi I Mi� e ® d e Qvp ®--� Fla �. 1 qE]-� nl � oou�—v 1 1 , C emm emo MJ �' oo 1 J (� 4 a 01 30 1 1 1 w $ -- ---------------- 0o r x 1 � U a n A ao C oom mmm � � I 1 , 1 l oa eoe eom 1 ec % Oi 1 R 1 s n n t p�lg a�uapuadapu� ao EXHIBIT B QUALIFYING TENANTS The tenants listed below shall be deemed to be Qualifying Tenants. Arts & Crafts Apparel/Soft Goods Beauty JoAnn Fabrics Nordstrom Rack Bath& Body Works Love& Make Macy's Backstage Sally Beauty Home Goods Sephora Books Jos. A Bank Aveda Barnes&Noble Men's Wearhouse Amazing Lash Half Price Books David's Bridal European Wax Centcr Mardel Christian Bookstore Once Upon a Child Massage Envy 2"d and Charles Anthropologie Malibu Tan Free People Ideal Image Cellular Kendra Scott The Lash Lounge AT&T Lululemon Toni & Guy Verizon Wireless Urban Outfitters Visible Changes Sprint Altar'd State Lush Metro PCS Ann Taylor Loft MAC T-Mobile White House/Black Market HeyDey Fix My Phone Victoria's Secret Allen Edmonds Department Stores Education Everything But Water Macy's C2 Education Sunglass Hut Kumon Tommy Bahama Entertainment Sylvan Learning Center Abercrombie Dave& Buster's Arthur Murray Dance Studio American Eagle Altitude Trampoline Emler Swim School Banana Republic Escape Room/Games School of Rock Express Chuck E Cheese Fred Astaire Dance Studio Hollister Main Event Big Blue Swim School Journeys Top Golf Vera Bradley Urban Air Electronics Zara Cinemark Apple Store Michael Kors AMC Theater Batteries& Bulbs Aerie Alamo Drafthouse Talbots Studio Movie Grill The Buckle Xscape Theatres Gap Cinergy Entertainment Banana Republic 818 Bowling and Billiards TJ Maxx Belong Duluth Trading Co. Frederick's of Hollywood B-1 Financial Fitness Furniture Bank of America LA Fitness Ashley Furniture Frost Bank Gold's Gym Bel Furniture Chase Bank Lifetime Fitness Rooms to Go Cash America Texans Fit Relax the Back Gold Rush Eat the Frog Fitness Chair King Wells Fargo ATM Orange Theory Fitness Gallery Furniture Gulf Coast Credit Union Club Pilates Bassett Navy Federal Credit Union Stretch Lab Star Furniture USAA Bank ATM The Exercise Coach Exclusive Furniture PNC Bank Core Power Yoga ATA Karate Home Ddcor/Furnishinas Grocery/Liauor 9 Round Kickboxing At Home 99 Ranch EOS Fitness HomeGoods Sprouts Powerhouse Gym Home Sense Trader Joe's Revolution Studio Bed Bath& Beyond Whole Foods Any Indoor Cycling Studio Floor&Ddcor Total Wine F45 Fitness Kirkland's Twin Liquor Pure Barre Painted Tree Longhorn Liquor Row House Paradise Grills Stone Cold Meats YogaSix Home Sense Wild Fork Foods Rumble Boxing Love Sac AKT Studio Sur La Table Home Improvement Stride Studio The Container Store Lowe's BFT Studio Pottery Barn Northern Tool Crate and Barrel Harbor Freight Health & Nutrition C132 The Tile Shop Quick Weight Loss Center Williams Sonoma Floor& Decor Weight Watchers West Elm Pinch a Penny Pool Patio Spa World Market Coast Spas Jewelry Zales Shoes Pets Claire's DSW Pet Supermarket Jared's Payless Shoes Natural Pawz Tiffany &Co. Foot Locker Banfield Pet Hospital Kendra Scott Rack Room Wild Birds Unlimited WSS Dogtopia Sports and Recreation Woof Gang Dick's Wholesale Club Kriser's Bike Barn Costco Urgent Vet,Pet Vet or any 24- Cabela's Sam's Club hour emergency vet care Field and Stream REI Scheels Golf Galaxy B-•, Medical Service Specialty Davita Dialysis TD Ameritrade Five Below UTMB Comet Cleaners GameStop Modem Acupuncture River Oaks Cleaners Hallmark Store Aspen Dental Restore Cryotherapy Tuesday Morning Pacific Dental Boardroom Salon for Men Guitar Center Heartland Dental Salons in the Park Party City Kelsey-Seybold Clinic Palm Beach Tan Buff City Soap Vein Clinics of America Great Clips CTS (Christmas Tree Shops) Visionworks Salons by JC Lenscrafters Floyd's Barbershop HCA Healthcare Supercuts Methodist FedEx Office America's Best UPS Store Pearle Vision Houston Shoe Hospital My Eyelab Fastsigns Alchemy 43 Tide Cleaners Blue Lion Salon Studios Phenix Salon Suites Sola Salon Studios Restaurants Restaurants(continued) Restaurants(continued) Any Carrabba restaurant Torchy's Tacos Any Landry's restaurant concept Baskin Robbins concept Any Perry's restaurant TCBY James Coney Island concept Jamba Juice Whiskey Cake Capital Grille Lolli and Pops Grimaldi's Any Pappas restaurant It's Sugar Texas de Brazil concept Cold Stone Creamery Brio Italian Grill Pluckers Cinnabon Niko Niko's In& Out Burger Nestle Tollhouse Tasting Room BJ's Brewhouse Great American Cookies Sweet Paris Bubba's 33 Minuti Coffee Cyclone Anaya Dave's Hot Chicken Black Bear Diner Cheesecake Factory Parry's Taphouse Maple Street Biscuit Co PF Chang's Akashi Sushi Toasted Yolk Caf6 Flemings Cafes Express Crust Pizza Eddie V's IHOP Via 313 Pizzeria Capital Grill K-Pop Grill Shake Shack Yard House Longhorn Steakhouse Smashburger Baker Street Pub and Grill McAlister's Deli Pincho Burgers& Kabobs Bar Louie Beck's Prime Cava Lupe Tortilla Chipotle The Cookshack Flying Saucer Einstein Bros Bagels Fajita Pete's The Rouxpour Freebirds World Burrito Jersey Mike's Zoe's Kitchen Pot Belly Swig CRU Food and Wine Bar B-3 Restaurants(continued) Sixty Vines Simple Greek Rainforest Cafd Pei Wei The Habit Burger Grill Hash House a Go Go Vick and Anthony's Ruth's Chris McCormick and Schmick's Fogo de Chao Killen's Steakhouse or any other Killen's concept Marble Slab Summer Moon Coffee Firehouse Subs Snooze, A.M. Eatery Gringo's Mexican Kitchen Black Rifle Coffee Scooter's Coffee El Tiempo or any other Laurenzo's restaurant concept Chicken Salad Chick Notwithstanding the lists above,the following shall not be Qualifying Tenants: 1. Any tenant using its leased premises for a Prohibited Use listed on Exhibit C. B-4 EXHIBIT C PROHIBITED USES a. Any use of the surface of the Project for the drilling for or removal of oil, gas or other hydrocarbon substances or refining of petroleum or its products or smelting of iron, tin, zinc or other ores. b. Any facility used for the sale of paraphernalia designed or intended for use with illegal drugs or liquid nicotine or any so-called"head shops"or"vape shops,"provided,however, the operation of an upscale retail cigar shop and/or the ancillary sale of cigars and/or other tobacco products by other permitted retailers shall be expressly permitted. C. Any Sexually Oriented Business (meaning persons,entities regulated by Chapter 4 of the Code and includes all "enterprises"described therein). d Any outdoor flea market, thrift store, or Second hand Goods Dealer (meaning personslentities regulated by Chapter 82 of the Code); except high quality businesses specializing in pre-owned merchandise, such as Plato's Closet, Play It Again Sports, or Once Upon a Child, are permitted to the extent that such store(s) comprise no more than five percent(50o)of the Project in the aggregate C. Any mortuary, crematorium or funeral home, including a sales office of any of the foregoing. f. Any manufactured home, mobile home,or recreational vehicle park, labor camp,junkyard or stockyard;provided,however,this provision shall not be applicable to temporary use of construction trailers during periods of construction, reconstruction or maintenance. ��. Any landfill, garbage dump or other such facility for the dumping, disposing, incineration or reduction of garbage. h. Any gambling establishment or betting parlor (including any so-called Internet cafd that offers gambling to the public, off-track betting facility, casino or gaming facility), but lottery tickets and other items commonly sold in retail establishments may be sold as an incidental part of business. i. Any livestock or poultry raising or keeping facilities or any outdoor animal raising or keeping facilities; provided,however, veterinarian clinics, animal hospitals, and or indoor pet boarding facilities with outdoor runs or pet training or play areas are expressly permitted to the extent permitted by applicable laws,regulations and ordinances. Any tattoo or body piercing facilities; provided, however, the ancillary provision of ear piercing services by otherwise permitted retailers and service providers, such as, but not limited to, Claire's,Macy's, or Kay Jewelers, shall be expressly permitted. C-1 k. Any outdoor shooting range or outdoor shooting gallery. C-2