Ordinance No. 11,340ORDINANCF`1 NO. 11,340
AN ORDINANCYI 01'I'll]" C71TY COUNCIL CITY OFBAYTOWN,
TEXAS, AUTHORIZING TfIE CITY MANAGE'RTO EXECLYIT AND THE
CITY CLF"RKTO XFrESTTO AN INTFIRLOCAL A("i'[ZEEMENI'WI'1'1,1'['1-11,-�
BAYTOWN MUNIC'IPAL DEVI"LOPMFINT DISTRICT RU"GARDING
I I
FUNDING 01"a'A MIXI"ID-USE Df_�`V HTO I'M I` ' NTPROJI`�'C'11`0 BL" I-OCIA"14`13
ON THE PROPF'R"FY LOCATI'D AT 700 W. TI`IXAS AVI HARRIS
COUNTY, TF"XAS. TO PROMOTI"' LOCAL E'CONOMIC DEVELOPMENT
AND STIMULATF' BUSINESS AND COMMURCIAL ACTIVITY WITHIN
T111, CITY; MAKING OTIll..'R PROVISIONS RFLATED 'ITIE'RE'TO: AND
PROVIDING F( I ) I C J' 1, 1 F, E` F 1`17"CTI V I -' 1.) ATE ` °111 L: R1-10 I '.
BE IT ORDAIN) I) 1.111-l' CITY COUNCIL OF 1111" CITY OF BAY" OWN,
Tl_`XAS:
Section 1: That the City Council (.:)f'thc City ot'llaylown.'J"exas, hereby authorizes
the Ci1v Miatiaocr to execute and (lie City Clerk to attest to an Interlocal Agreement with the
B,i t0\Vrl NfUnicipal Development District regarding funding ol'a mixed-use devc1opment project
to be located on the propert.y located at 700 W.Texas Ave., 11.11-1-k C0LMt)',,TCXAS. 10 promote
local economic devekq)JI)CM and tine, late business and commercial activity within dic City. A
copy ofsaid ag•eenicrit is zmtached hereto as Exhibit "A, and incorporated herein for all intents
and I)W-110SeS.
Section 2: This ordinance shall takc efTect immediately from and after its passage by
the City Council ofthe City, ofl.laytown.
INTROM.T11-1), Rl,,ADand PASSI-D by thcaffirm�ative vow/lfi_,a'f'the City COUnd Of the
Ity of Baytown this the 221`8 day cal` April, 201
APPROVE'D ASTO FORM:
0� -- — ---------
-Z,, Sle"ify Attorney
,5tt ACIO RAMIRI.-
�?, Imen I'd'n C'n Counull Ofdmww ; 2010 ApI 22 &K�
11. DONCARL,0S, Nla or
Exhibit "A"
AGREEMENT FOR FUNDING OF
A MIXED -USE DEVELOPMENT PROJECT
STATE OF TEXAS
COUNTY OF HARRIS
This Agreement for Funding of a Mixed -Use Development 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, will endeavor to enter into a
Chapter 380 Agreement with a developer to acquire the property located at 700 W. Texas Avenue,
Baytown, Harris County, Texas, and to lease it for the development of a mixed -use development at the
site, which will include the following:
a. a building with:
1. at least 3,000 square feet of commercial space and
2. at least 9,022 square feet of market -rate residential space consisting of the following:
b. a parking lot with at least 23 parking spaces or the number of parking spaces necessary to
comply with all applicable codes of the City, whichever is greater.
The funds provided by the District pursuant to Section 5 will be used to purchase the property and
will be repaid by the developer of the site at the City's annual Texas Local Government Investment Pool
( "TxPOOL ") rate rounded up to the next nearest whole percent and amortized over a 29 -year period with
a final balloon payment at the end of year 15. The interest rate shall be adjusted on January 1 of each
year based upon the City's then - current TxPOOL rate rounded up to the next nearest whole percent;
provided that, if ad valorem taxes are assessed against the real property or the leasehold estate in any year
during the Term hereof and paid by the Lessee, the interest rate shall be I% per annum for any such year
Agreement for Funding of a Mixed -Use Development Project, Page 1
in which taxes are so paid. Once the District's monies are paid back and the purchase option payment is
paid, the City will convey the property to the successful developer.
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 THREE HUNDRED
FORTY -SIX THOUSAND AND NO /100 DOLLARS ($346,000.00). All payments required to be made
herein shall be payable on or before 30 days after the District receives an invoice therefor from the City.
Section 6. Term.
This Agreement shall be effective upon signature of the City Manager, and shall expire thirty (30)
days after final completion and acceptance of the Project by the City, 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
Agreement for Funding of a Mixed -Use Development Project, Page 2
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.
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
Ci1y
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.
Agreement for Funding of a Mixed -Use Development Project, Page 3
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.
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 day of April, 2010, the date of execution by
the City Manager.
CITY OF BAYTOWN BAYTOWN MUNICIPAL
DEVELOPMENT DISTRICT
GARRISON C. BRUMBACK
City Manager
ATTEST:
LETICIA GARZA
City Clerk
APPROVED AS TO FORM:
STEPHEN H. DONCARLOS
President
ATTEST:
LETICIA GARZA
Assistant Secretary
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR. IGNACIO RAMIREZ, SR.
City Attorney General Counsel
RAKarenWilesTity CouncillMunicipal Development DisttictWontractsTonttacts 20101A4ixedUseDevelopmentContmct .doc
Agreement for Funding of a Mixed -Use Development Project, Page 4
AGREEMENT FOR FUNDING OF
A MIXED-USE DEVELOPMENT PROJECT
STATE OF TEXAS
COUNTY OF HARRIS
This Agreement for Funding of a Mixed-Use Development 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
underChapter377 of the Texas Local Government Code, as amended,(the "Act") and locatedin Harris
County, Texas, (the "District"). For and in considerationof 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 activelyworkto 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, will endeavor to enter into a
Chapter 380 Agreement with a developer to acquire the property located at 700 W. Texas Avenue,
Baytown,Harris County,Texas, and to lease it for the development of a mixed-use development at the
site, which will include the following:
a. a building with:
1.at least 3,000 square feet of commercial space and
2. at least 9,022 square feet of market-rate residential space consisting of the following:
b.
Niiniber of Units
Number of
Bedrooms
Number of Baths
.Approximate
Square Feet
6 1 1 611
1 1 1 716
1 Efficiency 1
5 2 1 928
a parking lot withat least23 parkingspacesor the numberof parkingspaces necessaryto
comply with all applicable codes of the City, whichever is greater.
The funds providedby theDistrictpursuantto Section 5 willbeusedto purchase thepropertyand
willbe repaidby the developer of the site at theCity's annualTexas Local Government Investment Pool
("TxPOOL")rate rounded up to thenext nearest whole percent and amortized overa 29-yearperiodwith
a final balloon payment at the end of year 15.The interest rate shall be adjusted on January 1 of each
year based upon the City's then-current TxPOOL rate rounded up to the next nearest whole percent;
provided that,ifad valorem taxes are assessed against the real property orthe leasehold estate inanyyear
during the Term hereofandpaidby the Lessee,the interest rate shallbe 1%per annum foranysuchyear
Agreement for Funding of a Mixed-Use Development Project. Page 1