Ordinance No. 13,175ORDINANCE NO. 13,175
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE
CITY CLERK TO ATTEST TO AN INTERLOCAL AGREEMENT WITH THE
BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT FOR FUNDING THE
ENGINEERING AND PROFESSIONAL SERVICES FOR THE HUNT ROAD
EXTENSION EAST OF GARTH ROAD PROJECT; AND PROVIDING FOR
THE EFFECTIVE DATE THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes
the City Manager to execute and the City Clerk to attest to an Interlocal Agreement with the
Baytown Municipal Development District for funding the Hunt Road Extension East of Garth
Road Project. A copy of said agreement is attached hereto as Exhibit "A," and incorporated
herein 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. '17
INTRODUCED, READ and PASSED by the affirmative ybte of the City Council of the
City of Baytown this the 26th day of April, 2016.
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APPROVED AS TO FORM:
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4NWAC4101RAMIREZ, SR , ity Attorney
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DONCARLOS, Mayor
RAKarenlFileslCity Council'% 0rdinances\2016W pri126\MDDAgreementforFundingof iuntRoadDesign.doc
Exhibit "A"
AGREEMENT FOR FUNDING THE ENGINEERING AND
PROFESSIONAL SERVICES FOR THE HUNT ROAD
EXTENSION EAST OF GARTH ROAD PROJECT
STATE OF TEXAS
COUNTY OF HARRIS
This Agreement for Funding the Engineering and Professional Services for the Hunt Road
Extension East of Garth Road Project (the "Agreement ") is made by and between the CITY OF
BAYTOWN, a municipal corporation located in Harris and Chambers Counties, Texas, (the "City ") and
the BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, created under Chapter 377 of the Texas
Local Government Code, as amended, (the "Act ") and located in Harris County, Texas, (the "District ").
For and in consideration of the mutual covenants herein contained, it is agreed as follows:
Section 1. Representations and Warranties of District.
a) The District is engaged in an on -going effort to provide new resources to plan, acquire,
establish, develop, construct and/or renovate one or more development projects beneficial
to the District, which includes the incorporated limits of the City lying within Harris
County.
b) The District covenants that it shall actively work to productively coordinate its activities
with the City in an effort to reduce duplication of services.
C) The District represents and warrants that it has been properly created and is duly
authorized pursuant to the Act to enter into this Agreement.
Section 2. Description of Program.
The City, with the assistance of the District as herein specified, agrees to endeavor to enter into a
Chapter 380 Economic Development Agreement with HEB Grocery Company, LP, (the "Developer "), to
induce the developer to purchase and invest at least FIFTEEN MILLION AND NO /100 DOLLARS
($15,000,000.00) by January 1, 2018, in real property, real property improvements and business personal
property, located on the Property for a new H -E -B Grocery Retail Store with approximately 90,000
square feet on the property detailed in Exhibit "A," which is attached hereto and incorporated herein for
all intents and purposes (the "Project "). The Developer will create or retain at least 100 full -time
equivalent jobs at the Project.
Section 3. Reports.
The City shall prepare and submit to the District within 120 days after the end of each fiscal year
during the term of this Agreement a verbal or brief written report describing the services performed by the
City pursuant to this contract during the previous year along with a summary of expenditures for the
previous fiscal year.
Section 4. Approvals.
The District understands, hereby directs and authorizes the City to make any Project clarifications
and/or modifications as may be necessary as determined by the City in its sole discretion.
Section 5. Funds to be provided by the District.
For and in consideration of the services to be provided by the City in furtherance of this
Agreement, the District shall tender funds to the City in an amount not to exceed ONE HUNDRED
FIFTY THOUSAND AND NO /100 DOLLARS ($150,000.00) per year for ten (10) years commencing
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project, Page 1
fourteen (14) months after the issuance of the certificate of occupancy and expiring ten (10) years
thereafter unless the Economic Development Agreement between the Developer and the City is sooner
terminated.
Section 6. Term.
This Agreement shall be effective on July 2, 2015, and shall expire once the Project is complete
and the payments required in Section 5 hereof have been fully paid by the District, unless sooner
terminated by either party hereto pursuant to the terms hereof.
Section 7. Termination for Cause.
A party may terminate its performance under this contract only upon default by the other party.
Default by a party shall occur if the party fails to perform or observe any of the terms and conditions of
this Agreement required to be performed or observed by that party. Should such a default occur, the party
against whom the default has occurred shall have the right to terminate all or part of its obligations under
this contract as of the 30`h day following the receipt by the defaulting party of a notice describing such
default and intended termination, provided: (1) such termination shall be ineffective if within said 30 -day
period the defaulting party cures or has commenced the cure of the default, or (2) such termination may
be stayed, at the sole option of the party against whom the default has occurred, pending cure of the
default.
Upon the termination of this Agreement, both parties shall be relieved of their respective
obligations herein stated, except for those referenced in Section 9 hereinbelow. This Agreement shall not
be subject to termination for convenience.
Section 8. Force Majeure.
Any prevention, delay, nonperformance, or stoppage due to any of the following causes shall
excuse nonperformance for the period of any such prevention, delay, nonperformance, or stoppage,
except the obligations imposed by this Agreement for the payment of funds allocated for the District's
programs. The causes referred to above are strikes, lockouts, labor disputes, failure of power, acts of
God, acts of public enemies of this State or of the United States, riots, insurrections, civil commotion,
inability to obtain labor or materials or reasonable substitutes for either, governmental restrictions or
regulations or controls, casualties or other causes beyond the reasonable control of the party obligated to
perform.
Section 9. Refund and Payment upon Termination.
Upon termination of this Agreement pursuant to Section 7 hereof due to an uncured default by the
City, the City hereby agrees to refund all unexpended, unappropriated monies previously paid by the
District to the City pursuant to this Agreement. If at the time of termination the District owes the City
monies, the District shall remit to the City the appropriate amount computed as of the effective date of the
termination.
Upon termination of this Agreement pursuant to Section 7 hereof due to an uncured default by the
District, the District hereby agrees to pay the total amount committed in Section 5 hereof on or before the
effective date of the termination.
Section 10. Parties in Interest.
This contract shall bind and benefit the City and the District and shall not bestow any rights upon
any third parties.
Section 11. Non - waiver.
Failure of either party hereto to insist on the strict performance of any of the agreements herein or
to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project, Page 2
considered a waiver of the right to insist on and to enforce, by an appropriate remedy, strict compliance
with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future
default or failure of performance.
Section 12. Compliance with Applicable Laws.
The parties hereto shall comply with all rules, regulations, and laws of the United States of
America, the State of Texas, and all laws, regulations, and ordinances of the City of Baytown as they now
exist or may hereafter be enacted or amended.
Section 13. Choice of Law; Venue.
This contract is subject to and shall be construed in accordance with the laws of the State of
Texas, the laws of the federal government of the United States of America and all rules and regulations of
any regulatory body or officer having jurisdiction. This contract is performable in Harris County, Texas.
Section 14. Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed delivered
when actually received or, if earlier, on the third day following deposit in a United States Postal Service
post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to
the respective other party at the address described below or at such other address as the receiving party
may have theretofore prescribed by notice to the sending party:
District
Baytown Municipal Development District
Attn: President, Board of Directors
P.O. Box 424
Baytown, Texas 77522 -0424
Fax: (281) 420 -6586
City
City of Baytown
Attn: City Manager
P.O. Box 424
Baytown, Texas 77522 -0424
Fax: (281) 420 -6586
Section 15. Audits.
The City and the District may, at any reasonable time, conduct or cause to be conducted an audit
of the other parties' records and financial transactions. The cost of said audit will be borne by the entity
requesting the audit. The City and the District shall make available all of its records in support of the
audit.
Section 16. Ambiguities.
In the event of any ambiguity in any of the terms of this contract, it shall not be construed for or
against any party hereto on the basis that such party did or did not author the same.
Section 17. Captions.
The captions of the sections and subsections, if any, of this Agreement are for convenience and
ease of reference only and do not define, limit, augment or describe the scope, content or intent of this
Agreement or of any part or parts of this Agreement.
Section 18. Entire Agreement.
This Agreement contains all the agreements of the parties relating to the subject matter hereof and
is the full and final expression of the agreement between the parties. Any oral representations or
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project, Page 3
modifications concerning this instrument are of no force or effect excepting a subsequent modification in
writing signed by all the parties hereto.
Section 19. Assignment or Transfer of Rights or Obligations.
The City shall not sell, assign, or transfer any of its rights or obligations under this Agreement in
whole or in part without prior written consent of the District.
Section 20. Severability.
All parties agree that should any provision of this Agreement be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Agreement, which shall continue
in full force and effect.
Section 21. Authority.
The officers executing this Agreement on behalf of the parties hereby represent that such officers
have full authority to execute this Agreement and to bind the party he /she represents.
IN WITNESS WHEREOF, the parties have made and executed this contract in multiple copies,
each of which shall be an original and effective on the 14`h day of April, 2016.
CITY OF BAYTOWN BAYTOWN MUNICIPAL
DEVELOPMENT DISTRICT
RICHARD L. DAVIS
City Manager
ATTEST:
LETICIA BRYSCH
City Clerk
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR.
City Attorney
STEPHEN H. DONCARLOS
President
ATTEST:
LETICIA BRYSCH
Assistant Secretary
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR.
General Counsel
R:`KarenTiles.City Council\Municipal Development District.Contracts•Contracts 2016 HEB380ProjectContract.doc
Agreement for Funding the he Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project. Page 4
AGREEMENT FOR FUNDING THE ENGINEERING AND
PROFESSIONAL SERVICES FOR THE HUNT ROAD
EXTENSION EAST OF GARTH ROAD PROJECT
STATE OF TEXAS §
COUNTY OF HARRIS §
This Agreement for Funding the Engineering and Professional Services for the Hunt Road
Extension East of Garth Road Project (the "Agreement") is made by and between the CITY OF
BAYTOWN, a municipal corporation located in Harris and Chambers Counties, Texas, (the "City") and
the BAYTOWN MUNICIPAL DEVELOPMENT DISTRICT, created under Chapter 377 of the Texas
Local Government Code, as amended, (the "Act") and located in Harris County, Texas, (the "District").
For and in consideration of the mutual covenants herein contained,it is agreed as follows:
Section 1. Representations and Warranties of District.
a) The District is engaged in an on-going effort to provide new resources to plan, acquire,
establish, develop, construct and/or renovate one or more development projects beneficial
to the District, which includes the incorporated limits of the City lying within Harris
County.
b) The District covenants that it shall actively work to productively coordinate its activities
with the City in an effort to reduce duplication of services.
c) The District represents and warrants that it has been properly created and is duly
authorized pursuant to the Act to enter into this Agreement.
Section 2. Description of Program.
The City, with the assistance of the District as herein specified, agrees to endeavor to enter into a
professional services agreement for design bid and construction phase services for the Hunt Road
Extension East of Garth Road Project, which will extend Hunt Road eastward for approximately 1100-
feet(the"Project").
Section 3. Reports.
The City shall prepare and submit to the District within 120 days after the end of each fiscal year
during the term of this Agreement a verbal or brief written report describing the services performed by the
City pursuant to this contract during the previous year along with a summary of expenditures for the
previous fiscal year.
Section 4. Approvals.
The District understands,hereby directs and authorizes the City to make any Project clarifications
and/or modifications as may be necessary as determined by the City in its sole discretion.
Section 5. Funds to be provided by the District.
For and in consideration of the services to be provided by the City in furtherance of this
Agreement, the District shall tender funds to the City in an amount not to exceed ONE HUNDRED
THIRTY-TWO THOUSAND ONE HUNDRED SEVENTY AND NO/100 DOLLARS ($132,170.00).
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project,Page 1
Section 6. Term.
This Agreement shall be effective on April 26, 2016,and shall expire once the Project is complete
and the payments required in Section 5 hereof have been fully paid by the District, unless sooner
terminated by either party hereto pursuant to the terms hereof.
Section 7. Termination for Cause.
A party may terminate its performance under this contract only upon default by the other party.
Default by a party shall occur if the party fails to perform or observe any of the terms and conditions of
this Agreement required to be performed or observed by that party. Should such a default occur, the party
against whom the default has occurred shall have the right to terminate all or part of its obligations under
this contract as of the 30th day following the receipt by the defaulting party of a notice describing such
default and intended termination,provided: (1) such termination shall be ineffective if within said 30-day
period the defaulting party cures or has commenced the cure of the default, or (2) such termination may
be stayed, at the sole option of the party against whom the default has occurred, pending cure of the
default.
Upon the termination of this Agreement, both parties shall be relieved of their respective
obligations herein stated, except for those referenced in Section 9 hereinbelow. This Agreement shall not
be subject to termination for convenience.
Section 8. Force Majeure.
Any prevention, delay, nonperformance, or stoppage due to any of the following causes shall
excuse nonperformance for the period of any such prevention, delay, nonperformance, or stoppage,
except the obligations imposed by this Agreement for the payment of funds allocated for the District's
programs. The causes referred to above are strikes, lockouts, labor disputes, failure of power, acts of
God, acts of public enemies of this State or of the United States, riots, insurrections, civil commotion,
inability to obtain labor or materials or reasonable substitutes for either, governmental restrictions or
regulations or controls, casualties or other causes beyond the reasonable control of the party obligated to
perform.
Section 9. Refund and Payment upon Termination.
Upon termination of this Agreement pursuant to Section 7 hereof due to an uncured default by the
City, the City hereby agrees to refund all unexpended, unappropriated monies previously paid by the
District to the City pursuant to this Agreement. If at the time of termination the District owes the City
monies,the District shall remit to the City the appropriate amount computed as of the effective date of the
termination.
Upon termination of this Agreement pursuant to Section 7 hereof due to an uncured default by the
District,the District hereby agrees to pay the total amount committed in Section 5 hereof on or before the
effective date of the termination.
Section 10. Parties in Interest.
This contract shall bind and benefit the City and the District and shall not bestow any rights upon
any third parties.
Section 11. Non-waiver.
Failure of either party hereto to insist on the strict performance of any of the agreements herein or
to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be
considered a waiver of the right to insist on and to enforce, by an appropriate remedy, strict compliance
with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future
default or failure of performance.
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project,Page 2
Section 12. Compliance with Applicable Laws.
The parties hereto shall comply with all rules, regulations, and laws of the United States of
America,the State of Texas, and all laws,regulations,and ordinances of the City of Baytown as they now
exist or may hereafter be enacted or amended.
Section 13. Choice of Law; Venue.
This contract is subject to and shall be construed in accordance with the laws of the State of
Texas,the laws of the federal government of the United States of America and all rules and regulations of
any regulatory body or officer having jurisdiction. This contract is performable in Harris County,Texas.
Section 14. Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed delivered
when actually received or, if earlier, on the third day following deposit in a United States Postal Service
post office or receptacle with proper postage affixed(certified mail,return receipt requested) addressed to
the respective other party at the address described below or at such other address as the receiving party
may have theretofore prescribed by notice to the sending party:
District
Baytown Municipal Development District
Attn: President,Board of Directors
P.O.Box 424
Baytown,Texas 77522-0424
Fax: (281)420-6586
City
City of Baytown
Attn: City Manager
P.O.Box 424
Baytown,Texas 77522-0424
Fax: (281)420-6586
Section 15. Audits.
The City and the District may, at any reasonable time, conduct or cause to be conducted an audit
of the other parties' records and financial transactions. The cost of said audit will be borne by the entity
requesting the audit. The City and the District shall make available all of its records in support of the
audit.
Section 16. Ambiguities.
In the event of any ambiguity in any of the terms of this contract, it shall not be construed for or
against any party hereto on the basis that such party did or did not author the same.
Section 17. Captions.
The captions of the sections and subsections, if any, of this Agreement are for convenience and
ease of reference only and do not define, limit, augment or describe the scope, content or intent of this
Agreement or of any part or parts of this Agreement.
Section 18. Entire Agreement.
This Agreement contains all the agreements of the parties relating to the subject matter hereof and
is the full and final expression of the agreement between the parties. Any oral representations or
modifications concerning this instrument are of no force or effect excepting a subsequent modification in
writing signed by all the parties hereto.
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project,Page 3
•
•
Section 19. Assignment or Transfer of Rights or Obligations.
The City shall not sell, assign, or transfer any of its rights or obligations under this Agreement in
whole or in part without prior written consent of the District.
Section 20. Severability.
All parties agree that should any provision of this Agreement be determined to be invalid or
unenforceable, such determination shall not affect any other term of this Agreement,which shall continue
in full force and effect.
Section 21. Authority.
The officers executing this Agreement on behalf of the parties hereby represent that such officers
have full authority to execute this Agreement and to bind the party he/she represents.
IN WITNESS WHEREOF, the parties have made and executed this contract in multiple copies,
each of which shall be an original and effective on the 26th day of Ap-' 2016.
CITY OF BAYTOWN BAYTO r MUNICIPAL
DEVE t PMENT DISTRICT
•AMMIA1111111111MIllik
RIC . SIT2-k— S EPHEN H.DONCARLOS
City Manager 'resident
A ST: A `0.T:
_) // /
/ ' )101---------.
ETICIA BRYSCH LETICIA BRYSCH
City Clerk Assistant Secretary
APPROVED AS TO FORM: APPROVED AS TO FORM:
/ %.0/../6 /4
C NACIO RAMIREZ, SR. NACIO RAMIREZ, SR.
City Attorney General Counsel
`moo / i f
8 . s i` 10
R:\Karen\Files\City Council\Municipal Development District\Contracts\Contracts 2016\HuntRoadEastotiarthRoadProjectContract.doc
Agreement for Funding the Engineering and Professional Services
for the Hunt Road Extension East of Garth Road Project,Page 4