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Ordinance No. 8,056970911 -1 ORDINANCE NO. 8056 ® AN ORDINANCE AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO A FACILITIES DEVELOPMENT AGREEMENT WITH SENTERRA REAL ESTATE GROUP, L.L.C., FOR THE DEVELOPMENT OF A CONFERENCE CENTER AT BAYLAND PARK; 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, Texas, hereby authorizes and directs the Mayor and City Clerk of the City of Baytown to execute and attest to a Facilities Development Agreement with Senterra Real Estate Group, L.L.C., for the development of a conference center at Bayland Park. A copy of said 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 I I" day of September, 1997. C- PETE C. ALFAkO, Mayor ATTEST: EILEENL .P. HALL, City Clerk APPROVED AS TO FORM: 94WaQ g.�2- GNACIO RAMIREZ, S ity Attorney 40 c: \MyDocumentslCouncil\ Meetings\ SeptemberlSenterraDevelopAgreeConf erenccBayland.I Ldoc BAYLAND PARK PHASE II FACILITIES DEVELOPMENT AGREEMENT This contract for the development of Phase 11 Improvements ( "Project ") on the City of Baytown's Bayland Park ( "Agreement ") is entered into as of this the _ day of , 199_, by and between the City of Baytown, Texas, a municipal corporation located in Harris and Chambers Counties, Texas, ( "City ") and Senterra Real Estate Group, L.L.C., a Texas limited liability company (Developer "). I. Definitions As used in this Agreement, the following words and phrases are defined to mean: Bayland Park: means that property which is more particularly described in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes. City: means and refers to the City of Baytown, Texas, and all attendant boards, agencies, commissions, and related bodies, along with their respective officers, agents, and employees. City Manager: means the City Manager of the City of Baytown or his designated representative. Construction Cost: means the entire cost to develop the Project not including the costs of the Developer, outside consultants, work performed directly by the City, any cost associated with the .City's financing of the Project and any costs provided by the City prior to the date hereof. Developer: means Senterra Real Estate Group, L.L.C, its officers, agents, employees, and assigns. Project: shall mean Phase II of the Development which shall include a publicly financed conference center and other necessary infrastructure site improvements as determined by the City. Project Representative: shall mean designees of the Developer who are approved by the City Manager to oversee the project and perform such other duties as specified herein or ordered by the City to carry out the intent of this Agreement. Total Project Cost: means the total cost of the Project including the cost of outside consultants but not including work performed directly by the City or the Developer, any cost associated with the City's financing of Facilities Development Agreement, Page I WHIBIT .A 0 the Project and any costs provided by the City prior to the date hereof. II. SCOPE OF WORK A. Scope of Work Developer will coordinate the development of the Project of the City to the City's satisfaction. Developer will coordinate the entire development process, in conformity with state law, which development process includes the following: Conceptual Phase • Negotiate and document architectural /engineering and all professional contracts. • Establish lines of authority, communications, and team schedules. • Manage and coordinate design team activities. • Obtain and analyze preliminary construction pricing. • Identify cost reduction target areas. • Conduct preliminary structural systems evaluation. • Conduct preliminary mechanical, plumbing and electrical system evaluation. • Evaluate space usage, core plans, and efficiency factors. • Identify and integrate parking requirements. Design Development Phase • Coordinate meetings between the City and the outside consultants. • Facilitate timely communication between all parties. • Evaluate alternative design and structural schemes. • Evaluate cost benefits of alternative building materials, mechanical /electrical /plumbing components, etc. • Develop complete project critical path method schedule including design and construction requirements. • Conduct periodic pricing reviews to assure that design and budget targets remain in balance. • Verify mechanical /electrical /plumbing load assumptions and establish related operational objectives. • Evaluate construction methods and techniques. • Finalize major equipment selections. • Establish project accounting systems. • Once complete, coordinate meeting with City officials for preliminary approval. Facilities Development Agreement, Page 2 ® Construction Document Phase • Prepare and review documents for discrepancies, design, and operation errors, potential cost savings, etc. • Formulate signage criteria and restrictions. • Provide instruction for bid package and specify general conditions. • Specify scheduling requirements. • Enforce City's bond and insurance requirements. • Evaluate and specify testing and quality control requirements. • Release early material orders (steel, glass, elevators, etc.), if required. • Evaluate potential material suppliers and subcontractors. • Verify that value engineering requirements are incorporated in revisions of the construction documents. • Incorporate in the contract documents performance specifications and warranty performance criteria. • Once complete, coordinate meeting with City officials for final approval. Permittine Phase • Coordinate obtaining construction and building permits from all appropriate governmental authorities. • Facilitate meetings when appropriate to gain approvals and answer questions. Contract Award Phase • Prepare Bid Specifications. • Construct pre -bid conference for bid work. • Receive and evaluate bids; recommend contract awards. • Conduct post bid conferences. • Review and recommend acceptance of alternatives. • Verify schedule requirements with contractors. • Prepare contracts and verify incorporation of all legal requirements. • Obtain and review construction submittal requirements and where specifications permit substations; evaluate alternatives. Construction Phase • Provide full construction inspection services. • Manage change order submittal and review process. • Maintain Project records. • Conduct regularly weekly job meetings of general contractor and major subcontractors. • Prepare bi- monthly written construction progress status reports. ® Manage testing and laboratory services. • Review and process pay requests submitted by contractor and suppliers. Facilities Development A,reement, Page 3 • Monitor and control schedules. Prepare monthly cost and progress reports. • Coordinate major contractors with specialty contractors (such as security, graphics and landscaping). • Verify building layout with surveys. • Maintain Project cost accounting and draw system. • Supervise architectural /engineering /construction service contracts. • Monitor Project security and safety requirements. • Coordinate tenant work and occupancy schedules. • Provide ongoing cost and quality control. • Supervise close -out to include as -built documents, operations training, and procurements of permits. B. Instructions during the Development The Developer shall advise and consult with the City Manager throughout the development process. All instructions to the outside consultant's or the contractor shall be forwarded through the Developer. The Developer shall have authority to act on behalf of the City only to the extent provided in the contract documents and this Agreement unless otherwise modified by written instrument. C. Site Examination The Developer shall examine (and shalt require the outside consultants to examine) the site at intervals appropriate (Developer to examine at least three (3) days a week) to the stage of construction or as may be reasonably required by the City in order to remain specifically familiar with the progress and quality of the work and to determine, in general, if the work is proceeding in accordance with the contract documents. On the basis of such on -site examinations, the Developer shall keep the City Manager informed of the progress and quality of work and shall attempt to guard the City against defects and deficiencies in the work of the contractor or overcharges by the contractor or any subcontractor. D. Developer's Responsibilities The Developer shall not be responsible for nor have control or charge of the construction means, methods, techniques, sequences or procedures, or safety precautions and programs in connection with the Project. The Developer shall not have control over the acts or omissions of the contractors, subcontractors, any of their agents or employees, or any other persons performing any work on the Project, unless such persons are employed or in privity with the Developer. E. Developer's Access to the Project Site The Developer shall at all times have access to the Project site throughout the development of the Project. Facilities Development A£reement, Page 4 0 F. Determination of Amounts Due and Owing Based on the Developer's observations at the site, the Developer shall determine the amounts owing to the contractor and shall cause the project architect to issue a project certificate for payment in such amounts, as provided in the contract documents. G. Rejection of Work The Developer shall have the authority to reject any and all work which does not conform to the contract documents, and whenever, in the Developer's reasonable opinion, it is necessary or advisable for the implementation of the intent of the contract documents, the Developer shall have the authority to require special inspections or testing of work in accordance with the provision of the contract documents, whether or not such work has been fabricated, installed or completed. H. Review of Drawings, Product Data, and Samples The Developer shall receive submittals, such as shop drawings, product data and samples, from the general contractor and shall review and cause the appropriate design professionals to approve or take other appropriate action upon them, but only for conformance with the design concept of the Project with the information given in the contract documents. Such action shall be taken with reasonable promptness so as to cause no delay. The Developer's approval of a specific item shall not indicate approval of an assembly of which the item is a component. The Developer shall review and sign or take other appropriate action on change orders prepared by the contractor for the City's authorization in accordance with the contract documents. I. Minor Changes in Work The Developer shall have the authority to order minor changes in work not involving an adjustment in a contract sum or an extension of contract time and which are not inconsistent with the intent of the contract documents. I Warranties from Contractor The Developer shall ensure that the contractor receives and forwards to the City Manager for review written warranties and related documents assembled by or required to be delivered by the contractor. K. City Approvals The City shall maintain absolute and final authority to approve all architectural and engineering plans for the Project. The Developer shall coordinate and obtain approval of ® the City Manager of all phases of the development process which shall include the following: Facilities Development Agreement, Page 5 • • outside consultant selection; • architectural design development; • construction documents; • construction specifications; • Project budget; • contractor selection; • alternate bid acceptance; and • change orders. L. Outside Consultants The Developer will retain outside consultants to assist with the preparation of the necessary drawings and specifications for the Project. These consultants shall possess academic and professional experience in developments similar to the Project and are licensed to perform such services in the State of Texas. Prior to commencement of the Project, Developer will identify the desired consultants and submit their respective qualifications and the proposed contractor of their services to the City for written approval, which will not be unreasonably withheld or delayed, prior to engaging, hiring, consulting with, or contracting with any firm, group of individuals or persons to prepare drawings and/or specifications or to provide advice relative to the Project. M. Indemnity THE DEVELOPER SHALL INDEMNIFY, PROTECT, DEFEND AND HOLD HARMLESS THE CITY, ITS EMPLOYEES, OFFICERS, AGENTS, SERVANTS AND REPRESENTATIVES FROM ANY AND ALL CLAIMS, LOSSES, DAMAGES, CAUSES OF ACTIONS, SUITS AND LIABILITY OF EVERY KIND, INCLUDING, BUT NOT LIMITED TO, ALL EXPENSES OF LITIGATION, COURT COSTS AND ATTORNEYS' FEES FOR INJURY TO OR DEATH OF ANY PERSON OR FOR DAMAGE TO ANY PROPERTY ARISING OUT OF, AS A RESULT OF, OR IN ANY WAY RELATED TO THE NEGLIGENCE OF DEVELOPER IN PERFORMING THE SERVICES PROVIDED BY DEVELOPER (THE "SERVICES PROVIDED BY DEVELOPER ") PURSUANT TO THIS AGREEMENT. IT IS THE EXPRESSED INTENTION OF THE PARTIES HERETO BOTH THE DEVELOPER AND THE CITY, THAT THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH IS AN INDEMNITY BY THE DEVELOPER TO INDEMNIFY, PROTECT AND DEFEND THE CITY. FROM (1) THE CONSEQUENCES OF THE CITY'S OWN NEGLIGENCE WHERE THAT NEGLIGENCE IS A CONCURRING CAUSE OF THE INJURY, DEATH OR DAMAGE WITH THAT OF DEVELOPER IN PERFORMING IS SERVICES HEREUNDER, AND /OR (I1) THE DEVELOPER'S JOINT AND SOLE NEGLIGENCE. FURTHERMORE, THE INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL HAVE NO APPLICATION TO ANY CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, SUIT AND LIABILITY WHERE THE INJURY, DEATH OR DAMAGE RESULTS FROM THE NEGLIGENCE OF THE CITY UNMIXED WITH Facilities Development Agreement, Page 6 • THE NEGLIGENCE OF DEVELOPER IN PEFORMING THE SERVICES BY DEVELOPER HEREUNDER. IN THE EVENT THAT ANY ACTION OR PROCEEDING IS BROUGHT AGAINST THE CITY BY REASON OF ANY OF THE ABOVE, THE DEVELOPER FURTHER AGREES AND COVENANTS TO DEFEND THE ACTION OR PROCEEDING BY LEGAL COUNSEL ACCEPTABLE TO THE CITY. I►f�i`►rl;Yf�7���7 Throughout the term of this Agreement, the Developer at its own expense shall purchase, maintain and keep in force and effect insurance against claims for injuries to or death of persons or damages to property which may arise out of or result from the Developer's operations and/or performance of the work under this Agreement, whether such operations and/or performance be by the Developer, its agents, representatives, volunteers, employees or subcontractors or by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be liable. The Developer's insurance coverage shall be primary insurance with respect to the City, its officers, agents and employees, including the City. Any insurance or self - insurance maintained by the City, its officials, agents and employees shall be considered in excess of the Developer's insurance and shall not contribute to it. Further, the Developer shall include all subcontractors as additional insureds under its commercial general liability policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein. The following is a list of standard insurance policies along with their respective minimum coverage amounts required in this contract: Commercial General Liability (CGL) • General Aggregate: $2,000,000 • Products & Completed Operations Aggregate: $2,000,000 • Personal & Advertising Injury: $1,000,000 • Per Occurrence: $1,000,000 a. Coverage shall be at least as broad as ISO CG 00 01 10 93 b. No coverage shall be excluded from standard policy without notification of individual exclusions being attached for review and acceptance. 2. Business Automobile Policy (BAP) • Combined Single Limits: $1,000,000 a. Coverage for "Any Auto." 3. Workers' Compensation: Statutory Limits • Employer's Liability: $500,000 a. Waiver of Subrogation Required. Facilities Develo ment Agreement, Page 7 0 Upon execution of this Agreement, Developer'shall file with the City valid certificates of insurance and endorsements acceptable to the City. Such certificates shall contain a provision that coverage afforded under the policies will not be canceled, suspended, voided, or reduced until at least sixty (60) days' prior written notice has been given to the City via certified mail, return receipt requested. The Developer shall also file with the City valid certificates of insurance covering all Subcontractors. The following are general requirements which are applicable to all policies: a. AM Best Rating of A:VII or better. b. Insurance carriers licensed and admitted to do business in State of Texas will be accepted. C. Liability policies will be on occurrence form. d. City of Baytown, its officials and employees are to be added as Additional Insureds to liability policies. e. Upon request of and without cost to City of Baytown, certified copies of all insurance policies and/or certificates of insurance shall be furnished to City of Baytown's representative. Certificates of insurance showing evidence of insurance coverage shall be provided to City of Baytown's representative prior to execution of this Agreement. £ Upon request of and without cost to City of Baytown, loss runs (claims listing) of any and/or all insurance coverage shall be furnished to City of Baytown's representative. 1[1[1. COMPENSATION A. Developer Fee Structure As compensation of the development service described in Section II for the Project, the Developer will be paid three and one -half percent (3.5 %) of the Construction Cost for managing the construction process on the City's behalf. In addition, Developer will receive one percent (1 %) of the Total Project Cost as a development fee to coordinate all facets of the Project. Facilities Development A,reement, Page 8 ® B. Outside Consultants Compensation The Developer will retain, under this Agreement, architectural and engineering firms to assist the Developer with the Project. Each designated firm's compensation package, once negotiated by the Developer, will be submitted to the City for written approval, which will not be unreasonably withheld or delayed. - It is understood and agreed that the total cost for these services will not exceed six and one -half percent (6.5 %) of the Construction Cost, unless otherwise approved in writing by the City, together with reimbursable expenses. C. Project Budget /Retainage The aforementioned Developer's fee and outside consultant's fee will be included in the Project Budget which will be submitted to the City for its written approval and then forwarded on to the City's financing source for formulation of a construction draw schedule. There shall be withheld from the Developer, retainage in the amount of five percent (5 %) of the reimbursements and fees due Developer hereunder. All contracts for design and construction shall state the City shall retain five percent (5 %) of each invoice as retainage. The retainage shall be released upon satisfactory completion of the specific construction activities or services. D. Timing of Payment Payments due to the Developer and any outside consultant shall be calculated in accordance with this article and shall be made within thirty (30) days from the receipt of the services or within thirty (30) days from the receipt of an appropriate invoice for the same, whichever is later. Each progress billing shall be accompanied by a narrative summary identifying the status of the Project; and in no event shall the total amount of progress payments exceed the percentages specified hereinabove. The City and the Developer reserves the right to request additional supporting documentation. Should additional information or documentation be required by the City, the Manager shall comply promptly with such demand and the period of time in which the City is required to tender payment shall be tolled until the City receives all requested information. Additionally, the City reserves the right to correct any error that may be discovered in any invoice that may have been paid to the Developer or any outside consultant and to adjust the same to meet the requirements of this Agreement. Following approval of invoices, the City will endeavor to pay the Developer and/or any outside consultant promptly; however, under no circumstances shall the Developer or any outside consultant receive interest on amounts due. E. Right To Withhold Compensation The City has the right to withhold from the Developer's and any outside consultant's compensation any monies due the City by the Developer or outside consultant respectively. Facilities Development Agreement, Page 9 ® IV. UTILITIES • The City will provide underground water, sewer and electrical utilities of sufficient size to accommodate all of the Project in accordance with the City Code as determined by the City's Chief Building Official. Such utility connections and infrastructure provided by the City shall extend to the Project. V. GOVERNING LAW AND VENUE This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. VI. NO RIGHT OF ARBITRATION Notwithstanding anything to the contrary or apparent contrary contained in this Agreement, the City and Developer agree that no claims or disputes between the City and Developer arising out of or relating to this Agreement to any of the work shall be decided by any arbitration proceeding including, without limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. §§ 1 -14) or any applicable state arbitration statute, including, but not limited to, the Texas General Arbitration Act, Texas Revised Civil Statutes, Title 10, articles 224 through 249 -43, provided that in the event that the City is subject to an arbitration proceeding notwithstanding this provision, Developer consents to be joined in the arbitration proceeding if Developer's presence is required or requested by the City for complete relief to be recorded in the arbitration proceeding. VII. ASSIGNMENT The Developer's rights under this Agreement are not assignable, unless the Developer obtains the City's prior written consent to such assignment, which consent will not be unreasonably withheld or delayed. Any attempted assignment in which the City's prior written consent was not obtained shall be void and shall render this Agreement voidable at the election of the City. VIII. NO THIRD PARTY BENEFICIARIES This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Developer and the City only. Facilities Development Agreement, Page 10 0 IX. ENTIRE AGREEMENT • It is understood that this Agreement contains the entire agreement between the parties and supersedes any and all prior agreements, arrangements or understandings between the parties relating to the subject matter. No oral understandings., statements, or promises shall be binding on the parties hereto, unless the same are reduced to writing and validly executed by both parties. No verbal agreement or conversation with any officer, agent, or employee of the City, either before or after the execution of this Agreement, shall affect or modify any of the terms or obligations hereunder. X. RELEASE The City, by this Agreement, does not give consent to litigation and the City hereby expressly revokes any consent to litigation that it may have granted by terms of this Agreement, charter or applicable state law. The Developer assumes full responsibility for the work to be performed by it hereunder (but not the services of the outside consultants or the services provided by the contractors) and releases, relinquishes and discharges the City, its officers, agents, representatives, and employees from all claims, demands, and causes of action of every kind and character, including the cost of defense thereof, for any injury to or death of any employee, officer, or agent of either of the parties hereto and any loss of or damage to property (whether the same be that either of the parties hereto or of third parties) caused by or alleged to be caused, arising out of, or in connection with the Developer's work and/or services to be performed hereunder, whether or not said claims, demands, and causes of action in whole or in part are covered by insurance. XI. WAIVER Failure of any party, at any time, to enforce a provision of this Agreement shall in no way constitute a waiver of that provision, nor in any way affect the validity of this Agreement or any part hereof or the right of the City hereafter to enforce each and every provision hereof. No term of this Agreement shall be deemed waived or breached excused unless the waiver shall be in writing and signed by the party claimed to have waived the same. Furthermore, any consent to or waiver of a breach will not constitute consent to or waiver of or excuse of any other different or subsequent breach. XII. SEVERABILITY All parities 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. Facilities Development AP reement, Page I I XIII. SAFETY AND HEALTH STANDARDS The Developer shall examine the contractor for compliance with the Texas Occupational Safety Act and with all safety and health standards promulgated by the Secretary of Labor under Section 107 of the Contract Work Hours and Standards Act, published in 29 C.F.R. Part 1926 and adopted by the Secretary of Labor as occupational safety and health standards under the Williams- Steigner Occupational Safety and Health Act of 1970, and to any other legislation enacted for the safety and health of the Contractor's employees Such safety and health standards shall apply to all subcontractors and their employees as well to the contractors and their employees. XIV. CONFLICTS OF INTEREST The Developer shall exercise reasonable care and diligence to prevent any actions or conditions which could result in a conflict with the City's best interests. This obligation shall apply to the activities of the employees and agents of the Developer in their relationship with their employees and their families of the City and of their parties arising from this Agreement and accomplishing services hereunder. Both parties' efforts shall include, but not be limited to, establishing precautions to prevent its employees or agents from making, receiving, providing or offering substantial gifts, extravagant entertainment, payments, loans or other considerations of the purpose of influencing individuals to act contrary to the City's best interest. XV. AUDIT RIGHTS BY CITY The City's duly authorized representative shall have access at all reasonable times to all contractor's and subcontractor's personnel job descriptions, employment and qualification record, books records and correspondence, instructions, plans, drawings, receipts, vouchers, data stored in computers, and memoranda of every description pertaining to the work under this Agreement for the purpose of auditing and verifying cost of work or for any other reasonable purpose. The City's representatives shall have the right to obtain copies of any documents pertaining in any way to the Project from the Developer within ten (10) days after a written request for the same. All records of accounts between the City and the Developer and all other accounts which pertain in any way to the Project shall be kept in accordance with Generally Accepted Accounting Principles /Standards. The Developer shall preserve and shall require its contractors and subcontractors to preserve all aforesaid documents for a period four (4) years after completion and acceptance or termination of the work. XVI. WARRANTY Developer hereby warrants to the City that Developer shall use its best skill and judgment in performing the Developer's services hereunder. Notwithstanding anything to the contrary or apparent contrary contained elsewhere in this Agreement, all warranties of the Developer 40 contained in the Agreement shall be in addition to, and not in lieu of, the City's claims and rights Facilities Development A ,,reement, Page 12 at law which shall continue for the applicable statute of limitations period with respect to any default, defective, non - complying or incomplete work. XVII. FUGITIVE EMISSIONS Fugitive emissions, such as road dust and dust generated by construction activities, must be controlled by wetting procedures and kept to a minimum. XVIII. HISTORICAL AND ENVIRONMENTAL COMPLIANCE Developer agrees to comply with and require all contractors and subcontractors to comply with all applicable laws, relations, orders and guidance administered by the City as well as any governmental agency with jurisdiction. The matters covered by this paragraph include, without limitation, discharges of waste to air, water or land, solid waste disposal, and management of hazardous substances. Developer shall comply with all laws of the State of Texas concerning the preservation of historical sites. XIX. COMPLIANCE WITH CITY DIRECTIONS Developer agrees that when the Developer or its employees agents or subcontractors are on or in the City's site, buildings or grounds at the Project site, the Developer, his employees, agents and/or subcontractors shall comply with the City's directions, rules and regulations for Developer's or City's employees on the site. The Developer agrees to cause the general contractor be responsible for the removal of any and all wastes from City's site and to provide for disposal which is proper and in compliance with applicable federal, state and local laws and regulations. XX. PROJECT SCHEDULE A. Project Schedule. The Developer covenants to perform the work and services required herein in a timely manner in accordance with the schedule, which is attached hereto as Exhibit "B" and incorporated herein for all intents and purposes. The Developer shall use its diligent efforts to cause the development of the Project to occur in accordance with such schedule and shall notify the City Manager in writing immediately should the development of the Project be delayed for any reason so as not to be in compliance with the schedule. B. Force Majeure Neither the City nor the Developer shall be required to perform any term, condition or covenant of this agreement so long as performance is delayed or prevented by force majeure, which shall mean acts as God, drought, floods, material or labor Facilities_ Development Agreement, Page 13 • restrictions by any governmental authority, and any other cause not reasonably within the control of either party in which, by the exercise of due diligence, the City or the Developer is unable to prevent or overcome. All reasonable efforts shall be undertaken to mitigate effects of such delay or failure to perform. XXI. INTENT OF THE PARTIES It is the intent of the parties to this Agreement that there is no relationship of partnership nor joint venture created by this Agreement, that there is no fiduciary relationship created and that any relationship between the parties is entirely contractual in nature and manifested by this Agreement. XXII. TERMINATION Both the Developer and the City hereby agree that this Contract may only be terminated by the Developer for cause, which shall be defined as a breach of any of the provisions of this Agreement which is specifically referenced herein or of any violation of law or order by the City. Such termination will become effective upon giving thirty (30) days' written notice to the City unless such default is cured by the City. The City may terminate this Agreement at any time with cause, which shall be defined as a breach of any of the provisions of this Agreement which are specifically referenced herein, such termination to be effective thirty (30) days following such written notice unless cured by Developer. The City may terminate this Agreement at any time without cause upon a finding by the City Manager that the public health, safety and/or welfare demand such result. Notwithstanding any termination by the City without cause, the City shall pay to the Developer the proportion of the Developer's fees earned through the date of termination and reimburse Developers for costs accrued through the date of termination (but in no event shall the amount of such costs exceed, when added to all prior reimbursement costs paid hereunder, three and one -half percent (3.5 %) of the anticipated construction costs). XXIII. CONTINGENCY Reference is here made to that certain Ground lease ( "Ground Lease ") of even date herewith executed by and between the City as lessor and Developer as lessee. Notwithstanding any contrary provision of this Agreement, the City shall have the right and option to terminate this Agreement if the City (or the Developer) terminates the Ground Lease. In the event of such termination hereof, the City shall pay to Developer the portion (if any) of Developer's fees earned through the date of such termination (but in no event shall the amount of such cost exceed, when added to all prior cost reimbursements paid hereunder, three and one -half percent (3.5 %) of the anticipated construction costs). Facilities Development AiZreement, Page 14 • XXIV. NOTICES All notices required to be given hereunder shall be given in writing either by telecopier, overnight or facsimile transmission, certified or registered mail at the respective addresses of the parties set forth herein or at such other address as may be designed in writing by the parry. Notice given by mail shall be deemed delivered three (3) days after the date of mailing thereof to the following addresses: Developer Senterra Real Estate Group. L.L.C. Attn: President 12 Greenway Plaza, Suite 1400 Houston, Texas 77046 Fax (713) 965 -2990 Citv City of Baytown Attn: City Manager P.O. Box 424 Baytown, Texas 77572 Fax (281) 420 -6586 XXV. HEADINGS The article headings are used in this Agreement for convenience and reference purposes only and are not intended to define limit or describe the scope or intent of any provision of this Agreement and shall have no meaning or effect upon its interpretation XXVI. AUTHORITY TO ENTER CONTRACT Each party has full power and authority to enter into and perform this Agreement, and the person signing this Agreement on behalf of each party has been properly authorized and employed to enter into this Agreement. The persons executing this Agreement hereby represent that they have authorization to sign on behalf of his respective corporation. XXVII. AGREEMENT READ The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. Facilities Development Agreement, Page 15 o5/0S/1S97 15:52 7132383687 LIDDELL 09109 15:58 1997 FROM. 214 871 8506 TO; 7132233717 09/09/97 16:37 e214 871 8506 'TEIZ CRESCENT e9/0911997J 14:14 7132383687 Irma L 00108 12:24 107 FROU: TO: 7132233717 Sap -06 -97 10143 �i MM AUrgUkM To LVM- COXTRACT PAGE 03 PAGE: 3 Q003 PAGE 02 PAGE. 13 P.26 E*ch paM has foU Power MW W*=tiy to cumv iW Wd perm"Ate. mid the Pgcwm slius di: Agra=m on bdW of e&t per hea bow pwparty Qhcwd and 49[ayod la =W& mm obis ?he Pumm exmiduc dds Agmcm= hcmjby rQ a tha toy ha wthw=ztian to lip as b&ag bn ova =P, i T"a pun" ada►� that 1&7 b" ud in" is b2 b.,W �y► ffip �a a =d carI60 0 of dtis 11 , k is wdeeboad aW a+od dvi the maybe mwtwd is a mom of =1 IN V/ITWM WH37XOF.1t udzOpaft bswt cu=rWdthU Amtut = d%be doe amd ?W am awvc v4i=m Arl � . Eli P, HALL, City C ark N•cY p �.1 •::JCS! . .�, -� �� s-Myr R A Rmi M T A E C3a0up, L'...C. . Br NEL IL M , MY OF BAYi'aWN, 'TEXAS C. ALFAR,a VAYW 0 XXVIII. MULTIPLE ORIGINALS L` It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. IN WITNESS WHEREOF, the undersigneds have executed this Agreement as of the date and year first above written. ATTEST: EILEEN P. HALL, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney Facilities Development Agreement, Page 16 SENTERRA REAL ESTATE GROUP, L.L.C. AN NEIL H. TOFSKY, President CITY OF BAYTOWN, TEXAS I PETE C. ALFARO, Mayor El STATE OF TEXAS § COUNTY OF HARRIS § Before me on this day personally appeared Neil H. Tofsky, in his capacity as President of Senterra Real Estate Group, L.L.C., on behalf of such limited liability company, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. SUBSCRIBED AND SWORN before me this day of 1997. cl111110,ntramlPhascl3 DwelopnuntA�reement90997 .SenrerraDe� clopmcnt Facilities Development Agreement, Page 17 Notary Public in and for the State of Texas 3 i J E 1 � 9 S � 3 1 }} 11 _ro U V 7 1 � ad It it •/ "/ � 0 � mss. ? 11 a i a 7, J ti. O HOTEL i NFERENC CENTER RESTAURANTI I :I U U ® c O J C � CL. C � V � ^C] 'J '0 r- U ti :J L Z L V G Z U f^ U v Vrl C �j C 'f. 4 1 u t.i J r- J a i 7 L J i rl n Q� Z �J L f� 1 r� s _ 7 K e O O J '2' _ Q C G -- C N O O O CZ CL V C i G U U zz (] v �j C 'f. 4 1 u t.i J r- J a i 7 L J i