Ordinance No. 4,21250731 -1
ORDINANCE NO. 4212
AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO
EXECUTE AND THE CITY CLERK TO ATTEST TO AN AGREEMENT
WITH THE ARNOLD DEVELOPMENT COMPANY FOR THE PREPARATION
OF A MARKET ANALYSIS AND DEVELOPMENT STUDY; AUTHORIZING
PAYMENT BY THE CITY OF SIXTY THOUSAND AND NO /100
( #60,000.00) DOLLARS; AND PROVIDING FOR THE EFFECTIVE DATE
HEREOF.
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
approves an agreement with Arnold Development Company and authorizes the Mayor
and City Clerk of the City of Baytown to execute and attest to said agreement for
the preparation of a market analysis and development study. A copy of said
agreement is attached hereto, marked Exhibit "A," and made a part hereof for all
intents and purposes.
Section 2: The City Council hereby authorizes payment of SIXTY THOUSAND
AND N01100 ($60,000.00) DOLLARS to the Arnold Development Company for the
described study.
Section 3: 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 31st day of July, 1985.
�{ I 5i i i I
ATTEST:
EILEEN�P H� LL �Ci�'�rk
� Y
�� `
50731 -1a
CONTRACT FOR MARKET
ANALYSIS AND DEVELOPMENT STUDY
STATE OF TEXAS §
COIaVTY OF HARR IS §
This Contract is made and entered into on the date
hereinafter last specified by and between the CITY OF BAYTOWN, a
municipal corporation located within Harris County, Texas,
hereinafter called "CITY ", and ARNOLD DEVELOPMENT COMPANY
hereinafter called "ADC ", a private company doing business in
Harris County, Texas.
W I T N E S S E T H
WHEREAS, the CITY desires to determine the method and
feasibility of redevelopment of the property in Baytown that is
located between Whiting, West Defee, West Pearce, and Main
Streets; and
WHEREAS, the described area is the old downtown area of the
City of Baytown, which has steadily declined in value and
condition, which adversely affects the entire City of Baytown;
and
WHEREAS, redevelopment of this area will eliminate the
further deterioration of property and prevent a blighting
influence on surrounding property; and
WHEREAS, redevelopment of this area will expand and improve
the quantity and quality of the community services in the area
and help maintain Baytown as a viable urban community; and
WHEREAS, the CITY desires to alleviate physical and
economical distress within this area through the stimulation of
private investment; and
WHEREAS, the CITY is authorized by the Texas Community
Development Act of 1975 to contract for services such as those
contemplated in this contract; and
WHEREAS, this proposed study will help the CITY determine
how to best provide redevelopment of the described area;
50731 -1b
NOW THEREFORE, for and in consideration of the premises and
the mutual convenants and agreements herein contained, the
parties hereto do hereby mutually agree as follows:
I
ADC shall determine the demographics and patterns of
population and commerce movement within the City of Baytown and
prepare a development plan (also referred to herein as the Study)
that will be appropriate for the community, properly designed,
and financially successful.
ADC will prepare demographic and market analysis using
detailed information related to the following:
1. Population centers;
2. Population trends and movement;
3. Shopping habits of area residents;
4. Traffic patterns and roadway infrastructure;
5. Economic profile of residents;
6. Development history of Baytown; and,
7. Complete inventory of:
a. Shopping centers and malls,
b. Centers of retail commerce,
C. Store types and goods sold,
d. Restaurants and menus,
3. Vacancy in existing retail,
f. Total square feet of retail,
g. Absorption rates,
h. Rental rates,
i. Traffic counts on major throughfares,
j. Office space with vacancy and rental rates, and
k. Major businesses.
II
During the demographic and market analysis period, ADC will
begin schematic architectural and land planning studies to
consider preliminary findings and begin the following:
1. Select location;
2. Schematic building design;
50731 -1c
3. Review site characteristics and restrictions;
4. Review local building codes and similar related
regulations;
5. Examine utility availability;
6. Select future park sites and other public areas;
7. Determine physical restriction;
B. Prepare preliminary land plan; and,
9. Prepare preliminary schematic development plan.
III
Based on the market and demographic findings and the
anticipated competitive rents in the area, as each relates to the
schematic architecture and land plan, ADC will prepare
preliminary budgets. ADC will then test the market strength and
development concept by presentations to a number of predetermined
brokers and potential users. A preliminary determination of
depth and interest in the market will then be formulated. The
size and configuration will be reviewed and market, structure
size, and schematic design will be re- evaluated.
IV
A general contractor of sufficient size and experience will
be selected by ADC to provide preliminary pricing. Before
completion of the final schematic design, but after the market
analysis and preliminary schematic design, ADC will prepare
refined budgets and cost projections. The schematic design will
be modified according to consideration by the general contractor
and ADC of the following:
1. Component construction cost;
2. Best construction materials and means;
3. Pricing schedule for construction elements;
4. Review material for best pricing;
5. Construction time;
6. Site constraints;
7. Guaranteed maximum cost with necessary allowances;
and,
B. Review for contract document problems.
50731 -1d
V
After the cost analysis is completed, ADC will analyze the
potential sources of financing. A mortgage package will be
compiled for formal presentation to appropriate financial
institutions. Preliminary judgments will be made concerning
ownership and the need for joint venture partners. ADC will
explore avenues for local financing and review all preferential
financing, low interest loans, or grants that are available. The
CITY agrees to provide cooperation and assistance to the fullest
extent possible. The final Study will include decisions for all
elements, in ADC "s judgment, that are necessary to make the
development appropriate for Baytown and financially successful.
It will include: market conclusions, demographics data, tenant
mix, rent rates, recommendations for public and private
cooperation, park and open space needs, land acquisition, traffic
recommendations, final schematic design, guaranteed maximum
construction costs, and other salient factors.
VI
The cost for this development plan and services will be
$180,000.00; the time for completion should be four to eight
months from the initial payment. A $60,000.00 deposit is
necessary to start the process. Payment will be made in three
equal installments. The first installment shall be in
consideration for the services provided in paragraphs I, II, and
III, hereinabove described. The second installment shall be in
consideration for the services provided in paragraph IV
hereinabove described, and the third installment shall be in
consideration for the remaining services to be provided by ADC.
Prior to the second and third payments, a representative of the
CITY will review periodic data and conclusions with Arnold
Development Company and a decision will be made, based on the
existing data and other relevant factors, whether to continue or
discontinue the funding for the Study. If the CITY or ADC elects
to discontinue the Study for reasons based on the findings, the
process will terminate, and no further payments shall be made by
U
50731 -le
the CITY. Arnold Development Company will have the right,
however, to continue the Study with no cost obligation to the
CITY, provided, however, that the CITY will continue to assist in
all other ways to the fullest extent possible.
VII
The Study, including all data, conclusions, and subparts, is
the property of the City of Baytown. If the City of Baytown
elects to discontinue the second and /or third installment of the
described services, only that portion of the Study for which the
CITY has paid shall become the property of the City of Baytown.
In such instance, ADC shall own any portion of the Study it
elects to continue beyond that paid for by the CITY.
If ADC elects to begin a development within Baytown, ADC
agrees to pay $180,000.00 to the City of Baytown for the use of
the Study prepared under this contract, it being agreed and
understood by the parties that ADC will benefit from the
information gathered in the report, regardless of whether ADC
specifically uses the Study or follows the recorrmendations of the
Study. If ADC prepares an installment of the Study for which the
CITY has elected to discontinue funding, ADC will be permitted to
deduct from the $180,000.00 payment the amount of $60,000.00 for
each installment the CITY elected to discontinue funding.
SIGNED AND ENTERED into this day of
. 1985.
CITY OF BAYTOV"
EMvETT O. R3 70, Mayor
ATTEST:
EILEEN P.. HALL, City Clerk
ARNOLD DEVELOPMENT COMPANY
TI E5 APMLD, ~President
•
CONTRACT FOR MARKET
ANALYSIS AND DEVELOPMENT STUDY
STATE OF TEXAS §
COUNTY OF HARRIS §
This Contract is made and entered into on the date
hereinafter last specified by and between the CITY OF BAYTOWN, a .
municipal corporation located within Harris County , Texas ,
hereinafter called "CITY" , and ARNOLD DEVELOPMENT COMPANY
hereinafter called "ADC" , a private company doing business in
Harris County , Texas.
W I T N E S S E T H
WHEREAS , the CITY desires to determine the method and
feasibility of redevelopment of the property in Baytown that is
located between Whiting , West Defee , West Pearce , and Main
Streets; and
WHEREAS , the described area is the old downtown area of the
City of Baytown , which has steadily declined in value and
condition , which adversely affects the entire City of Baytown;
and
WHEREAS , redevelopment of this area will eliminate the
further deterioration of property and prevent a blighting
influence on surrounding property; and
WHEREAS , redevelopment of this area will expand and improve
the quantity and quality of the community services in the area
•
and help maintain Baytown as a viable urban community; and
WHEREAS , the CITY desires to alleviate physical and
economical distress within this area through the stimulation of
private investment ; and
WHEREAS , the CITY is authorized by the Texas Community
Development Act of 1975 to contract for services such as those
contemplated in this contract ; and
WHEREAS , this proposed study will help the CITY determine
how to best provide redevelopment Of the described area;
NOW THEREFORE, for and in consideration of the premises and
the mutual convenants and agreements herein contained , the
parties hereto do hereby mutually agree as follows :
ADC shall determine the demographics and patterns of
population and commerce movement within the City of Baytown and
prepare a development plan ( also referred to herein as the Study)
that will be appropriate for the community , properly designed ,
and -financially successful .
• ADC will prepare demographic and market analysis using
detailed information related to the following:
1 . Population centers;
2 . Population trends and movement;
3 . Shopping habits of area residents;
4. Traffic patterns and roadway infrastructure;
5 . Economic profile of residents;
6. Development history of Baytown; and , -
7 . Complete inventory of :
a. Shopping centers and malls ,
b. Centers of retail commerce ,
c. St-ore types and goods sold ,
d. Restaurants and menus ,
3. Vacancy in existing retail ,
f . Total square feet of retail ,
g. Absorption rates ,
h. Rental rates , -
i . Traffic counts on major throughfares ,
j . Office space with vacancy and rental rates , and
k. Major businesses .
II
During the demographic and market analysis period , ADC will
begin schematic architectural and land planning studies to
consider preliminary findings and begin the following :
1 . Select location; -
2 . Schematic building design;
3 . Review site characteristics and restrictions ;
4. Review local building codes and similar related
regulations;
5. Examine utility availability;
6 . Select future park sites and other public areas ;
7. Determine physical restriction;
8 . Prepare preliminary land plan; and ,
9. Prepare preliminary schematic development plan.
III
Based on the market and demographic findings and the
anticipated competitive rents in the area, as each relates to the
schematic architecture and land plan , ADC will prepare
preliminary budgets . ADC will then test the market strength and
development concept by presentations to a number of predetermined
brokers and potential users . A preliminary determination of
depth and interest in the market will then be_ formulated . The
size and configuration will be reviewed and market , structure
size , and schematic design will be re-evaluated .
IV
A general contractor of sufficient size and experience will
be selected by ADC to provide preliminary pricing . Before
completion of the final schematic design , but after the market
analysis and preliminary schematic design , ADC will prepare
refined budgets and cost projections . The schematic design will
be modified according to consideration by the general contractor
and ADC of the following:
1 . Component construction cost ;
2 . Best construction materials and means ;
3. Pricing schedule for construction elements;
4. Review material for best pricing ;
5. Construction time;
6 . Site constraints ;
7 . Guaranteed maximum cost with necessary allowances ;
and ,
8. Review for contract document problems .
V
After the cost analysis is completed , ADC will analyze the
potential sources of financing . A mortgage package will be
compiled for formal presentation to appropriate financial
institutions . Preliminary judgments will be made concerning
ownership and the need for joint venture partners . ADC will
explore avenues for local financing and review all preferential
financing , low interest loans , or grants that are available. The
CITY agrees to provide cooperation and assistance to the fullest
extent possible . The final Study will include decisions for all
elements , in ADC ' s judgment , that are necessary to make the
development appropriate for Baytown and financially successful .
It will include: market conclusions , demographics data , tenant
mix , rent rates , recommendations for public and private
cooperation, park and open space needs , land acquisition, traffic
recommendations , final schematic design , guaranteed maximum
construction costs , and other salient factors.
VI
The cost for this development plan and services will be
$180 ,000 . 00 ; the time for completion should be four to eight
months from the initial payment . A $60 , 000 . 00 deposit is
necessary to start the process . Payment will be made in three
equal installments . With the exception of the final development
plan stated in the first paragraph of paragraph I , the first
installment shall be in consideration for the services provided
in paragraphs I and II , hereinabove described . The second
installment shall be in consideration for the services provided
in paragraph III and IV , hereinabove described , and the third
installment shall be in consideration for the remaining services
to be provided by ADC. Prior to the second and third payments , a
representative of the CITY will review periodic data and
conclusions with Arnold Development Company and a decision will
be made , based on the existing data and other relevant factors ,
whether to continue or discontinue the funding for the Study. If
the CITY or ADC elects to discontinue the Study for reasons based
on the findings , the process will terminate ,- and no further
payments shall be made by the CITY. Arnold Development Company
will have the right , however , to continue the Study with no cost
obligation to the CITY, provided , however , that the CITY will
continue• to assist in all other ways to the fullest extent
possible.
VII
The Study , including all data , conclusions , and subparts , is
the property of the City of Baytown , subject to the property
rights of the architect to his drawings . If the City of Baytown
elects to discontinue the second and/or third installment of the
described services , only that portion of the Study for which the
CITY has paid shall become the property of the City of Baytown .
In such instance , ADC shall own any portion of the Study it
elects to continue beyond that paid for by the CITY.
If ADC elects to begin a development within Baytown , ADC
agrees to pay $180 ,000 .00 to the City of Baytown for the use of
the Study prepared under this contract , it being agreed and
understood by the parties that ADC will benefit from the
information gathered in the report , regardless of whether ADC
specifically uses the Study or follows the recommendations of the
Study. If ADC prepares an installment of the Study for which the
CITY has elected to discontinue funding , ADC will be permitted to
deduct from the $180 ,000 . 00 payment the amount of $60 ,000 . 00 for
each installment the CITY elected to discontinue funding.
VIII
As this study contains information which would confer an
advantage upon competing developers if released , the City agrees
to give ADC exclusive right to use this study for a period of two
years after completion of the study , and will not release the
base information to any other party during this period. Failure
by ADC to maintain substantial progress on a development project
at all times shall constitute a lapse of all rights . Such right
to maintain the confidentiality of this study shall be subject to
applicable state and federal laws and/or statutes . If after two
•
years , ADC has not started any development in the Texas Avenue
area, the City may make this study available to others under such
conditions as it deems appropriate.
SIGNED AND ENTERED into this 1 day of
, 1985.
ARNOLD DEVELOPMENT COMPANY
1(1(A) °A .'>wi
CHARLES ARNOLD, President
CITY OF BAYTOWN
O, Mayor
LYNDA KI CORE, Deputy ty Clerk