HomeMy WebLinkAbout(2) PO 5818: BIG WHEEL DEVELOPMENT CORPORATIONinteroffice,
MEMORANDUM
To: - Mayor, City Council, and City Manager
From: Valecia R. Tizeno, First Assistant City Attorney
Date: February 8, 2008 2008
Subject: P. O. No. 5818; Council Meeting-February 12,
Attached is P. O. No. 5818 authorizing the City Manager to
execute ''Amendment No. 1 to the Developer Participation Contract
with. Big Wheel Development Corporation. endancilmember Beard
requested that this item be placed on the ag
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Attachment
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P. 0. No. 5818
11/13/07 gt updated
ORDINANCE NO.
AN ORDINANCE AIITHORIZING THE CITY MANAGER TO
EXECIITE AN AMENDMENT NO. 1 TO THE DEVELOPER
PARTICIPATION CONTRACT .WITH BIG WHEEL
DEVELOPMENT CORPORATION (REQIIESTED BY
COIINCILMSMBER BEARD) .
WHEREAS, a new contract with Big Wheel Development
Corporation was approved by City Council, per Ordinance No. 07-46
at the July 17, 2007 Council Meeting; and
WHEREAS, Big wheel Development Corporation is requesting a
change in his incentive;-and
WHEREAS, the City Council deems it in the public interest and
for economic development for the City to continue to provide
incentives so long as the development is promptly completed; and
WHEREAS, the Council deems in the public interest and for
economic development to approve an Amendment No. 1 to the Developer
Participation Contract, as delineated in Exhibit "A" attached
hereto.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COIINCIL OF THE CITY
OF PORT ARTHIIR:
Section 1. That the facts. and opinions in the preamble are
true and correct.
Section 2. That the City Manager is herein authorized to
y~ .
execute Amendment No. 1 to the Developer. Participation Contract
with Big Wheel Development Corporation in substantially the same
forme as Exhibit.."A"
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Section 3. That a copy of the caption of this Ordinance be
spread upon the Minutes of the City Council.
READ, ADOPTED AND APPROVED on this day of
A.D., 2007, at a Council Meeting of the City Council of the City of
Port Arthur, Texas, by the following vote:
AYES:
City Counci]
NOES:
Deloris "Bobbie" Prince, Mayor
ATTEST:
Acting City Secretary
APPROVED AS ¢O FORM:
is • ~ -v
Mark T. Sd} oloy City Attorney (-C fJ r.Lew I GL~'~ G`~ 1
APPROVED FOR /ADMINISTRATION:
Stephen Fitzgi bons, City Manager
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EXHIBIT "A"
STATE OF TEAS §
5
COIINTY OF JEFFERSON 5
AMENDMHNT N0. 1 TO
DEVELOPER PARTICIPATION CONTRACT
WHEREAS, Big Wheel-Development, Inc. entered into a
Developer Participation Contract, as approved by Ordinance No.
03-058; and
WHEREAS, said Agreement was superseded by a new Agreement.
approved by Ordinance No. 05-49,and amended by Ordinance No. 06-
45; and
WHEREAS, said Agreement was superseded by another
Agreement, approved by Ordinance No. 07-14; and
WHEREAS said Agreement was superseded by a new agreement,
approved by Ordinance No. 07-46; and
WHEREAS, Vista Village Subdivision has partially completed
water lines, sewer lines, storm-sewer lines as well as roads;
and.
WHEREAS, said water lines, sewer lines, storm sewer .lines
and roads need to be repaired or replaced as to complete the
development of the subdivision; and
WSERSAS, the debris on the site shall be removed by Big
wheel Development, Inc., and
WHEREAS, the City of Port Arthur and Big Wheel Development,
Inc. desire to enter into anew Amendment No. 1 to the
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Developer Participation Contract pursuant to Sections 212.071 to
212.074 Local Government Code, V.T.C.A,.; and
WHEREAS, Big wheel Development,. Inc. has indicated that it
has purchased. lots (Lots 1 to 10 of Block 11 adjacent to
Shreveport and Lots 18 to 32 of Block 8 adjacent to Drummond)
and plans to purchase and develop additional lots in the Vista
Village Subdivision and build single family residences; and
WHEREAS, Big Wheel Development, Inc. is planning to develop
the site in phases, as delineated in Exhibits "A", "B", "C", and
"D"; and
WHEREAS, the improvements to be constructed by Big wheel
Development, Inc. will be the completion of- a road or roads,
water lines, sewer lines, and storm sewer lines, catch basins,
etc., and other storm sewer construction as is required by City
Code and professional engineering analysis; and
WHEREAS, once these improvements are constructed to City
specifications, they will be deeded to the City of Port Arthur
as public improvements without any liens or encumbrances; and
WHEREAS, Big Wheel Development, Inc. is requesting that the
City of Port Arthur participate in the cost of some of these
improvements as to develop these lots so that at least sixty
(60) single family residential units will be built in Vista
Village Subdivision (Port Arthur) by Big Wheel Development, Inc.
with an amended deadline of December 31, 2010 instead of _
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December 31, 2009 g-08-9, and the remainder of up
to one hundred eighty (180) residential units (homes) by May 1,
2012.
NOW TH$REFORE,-the City of Port Arthur and Big Wheel
Development, Inc. agree to the following Amendment to the
Agreement as follows as noted by the following changes,
additions or deletions:
Section 1: The facts and opinions in the preamble are
true and correct.
Section 2: Timetable for purchase of Lots for
development:
(a) Big Wheel Development, Inc., or i.ts affiliated
companies, will provide documentation that it has
purchased the following lots on Drummond with funds
provided by Big Wheel Development, Inc. As a part of
said purchase, any and all delinquent taxes, if any,'
on said property will be_paid by the original owner`~or
by Big Wheel Development, Inc.
Lots 4 to 17 of Block 7 of Vista Village Subdivision
Lots 18 to 32 of Block 8 of Vista Village Subdivision
(b) Big Wheel Development, Inc., or its affiliated
companies, will provide documentation that it has
purchased the following lots on Tartan with funds
provided by Big Wheel Development, Inc. As part of
said purchase, any and all delinquent taxes; if any,
on said property, will be paid by the original owner
or by Big Wheel Development, Inc.
Lots 11 to 20 of Block 4 of Vista Village Subdivision
Lots 6 to 18 of Block 5 of Vista Village Subdivision
Lots 1 to 16 of Block 6 of Vista Village Subdivision
Lots 18 to 34 of Block 7 of Vista Village Subdivision
Lots 1 to i0 of Block 11 of Vista Village Subdivision
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(c) Big Wheel Development, Inc., or its affiliated
companies, will purchase lots on Grammercy,•as
described herein on or before April 1, 2008, with
funds provided by Big Wheel Development, Inc. As a
part of said purchase, any and all delinquent taxes,
if any, on said property, will be paid .by the original
owner or by Big Wheel Development, Inc.
Lots 1 to 20 on Block 9 of Vista Village Subdivision
Lots 1 to 21 on Block 10 of Vista Village Subdivision
Lots 4 to 23 on Block 1 of Vista Village Subdivision
Lots 1 to 13 on Block 2 of Vista Village Subdivision,
Section 3: The developer will immediately commence
construction and immediately clear and grub the site. The
develo er will also take such action as to maintain the progress
of the construction without delay and stoppages.
Section 4: ~ a ~ ~".. "^ ~~~ r.. ^~
^ ^^~ ^^a~, Big Wheel Development, Inc. will execute a
performance bond for. the construction of the improvements to
ensure completion of the project. The erformance bond(s) can be
issued on a phase by phase basis where the performance bond for
Phase I is $ 650,000, for Phase II is $ 875,000 and for the
remaining Phases of at least $ 975,000. ~~''-`"~`'~~
~~~ ^^a The bonds must be executed by a
corporate surety in accordance with Chapter 2253 of the
Government Code. The City will be a.beneficiary of said
performance bond(s). Big Wheel Development, Inc. will have
liability insurance of $1,000,000, and hold the City harmless
from its construction activities.
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Section 5: The City of Port Arthur will pay for §6°s
14.46153.E of the following costs, with the total reimbursement
by the City not to exceed $94,000 out of a projected cost for
the public improvements of $650,000 on the following:
• Engineering & Final Design
• Drainage Study
• Survey
• Environment Study
• Geo Technical Study
• Replacement of storm sewer lines and inlets and
ancillary improvements as they pertain to the
necessary drainage for the development of the
lots on Drummond Street.
• Installation of new water and sanitary sewer
-lines to serve the lots on Drummond Street
• Removal of old storm sewer lines
The City's share of these-costs will be paid within thirty
(30) days after these improvements, these studies, and after
completion of Drummond Street (from Austin to Shreveport) a~
F 1. ...f I F l l i I~
F ~
~mo~~ of Vista Village Subdivision as denoted in Phase I of
Exhibit "A") by Big Wheel Development, Inc., in accordance with
the City's Code of Ordinances. The City will receive a copy of
all of the studies. Big Wheel Development will complete these
improvements by ~~~.-z~ ,July 31, 2008. ''~~d=gin -t"
tie y°, ^^^ eke The City will' has provided, as to-the drainage
., .... ,
work on Drummond, Arse 960 lineal feet of 30" HDPE pipe, 120
lineal feet of 18" HDPE pipe,- 136 lineal feet of 30" reinforced
s
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concrete pipe, and 32 lineal feet of 18" reinforced concrete
~..r ~ ~, h--^-^s. In
pipe stabilizing sand
accordance with the approved construction plans, Big Wheel
Development, Inc. will install the pipes, construct the catch
basins, remove existing pipe and. catch basins and take the
removed material to the landfill. The City will accept the
materials at the landfill at no charge to Big Wheel Development,
Inc. Big Wheel Development, Inc. will tie-in the storm sewer
line to the Shreveport drainage system. In addition to the
$94,000 that will be provided if $650 000 of public improvements
constructed by Big Wheel Development the City will
concrete for the catch basins onl on Drummond Avenue with ten
10) days written notice from Big Wheel Development. _
Wheel Develo went is not read for the concrete when it arrives
at
time, then
a the Cit for the rejected concrete and for all damages
Ci
rovide all personnel and equipment as to properly place the
concrete in the catch
in
Ci
industr standards. The Cit will not rovide rebar, forms,.
etc for construction of catch basin or any other sup plies,
or equipment to com lete the infrastructure of this
development.
6
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There is presently water that is coming from an unknown
underground source in Vista Village. Big Wheel Development will
take such action at the-cost of Big Wheel Development as to
denote the source of the water and take the corrective measures
needed as to stop the flow of water to the surface.
Section 6: The City of Port Arthur will pay for §9°s u~
to 7.2$ of the following costs, with the total reimbursement by
the City not to exceed $63,000 out of a projected cost for the
public improvements in Phase II of $875,000 on the following
improvements at or adjacent to Tartan Street and on the
following improvements at or adjacent to Lots 1 to Lot 10 on
Block 11 of Vista Village:
• Replacement of Storm Sewer Inlets
• Replacement of Storm Sewer Lines
• Replacement and Installation of Sanitary Sewer Lines
• Replacement and Installation of Water Lines
The City's share of these costs will be paid within thirty
(30) days after the completion of these improvements and after
the completion of Tartan Street, the completion of Shreveport
from Lots 1 to Lot 10, and extension of Austin as denoted in
Phase II of Exhibit "A" by Big-wheel Development, Inc., in
accordance with the City's Code of Ordinances. Big Wheel
Development will complete these improvements by December 31,
2-0-98 2 0 0 9 .
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Section 7:-
(a) The City will reimburse Big Wheel Development, Inc.. a
percentage of these costs within 30 days after the
following has .occurred:
(i) 60 homes have been built within Vista Village by
December 31, x-0&9 2010. and certificates of
occupancy have. been issued, and
(ii) The completion of the water and sanitary sewer,
and storm sewer lines to City specifications.
(iii) The completion of Tartan Street and Drummond
Street to city specifications and acceptance
thereof by the-City and completion of the other
improvements to city specifications by Big Wheel
Development and acceptance by the City as
delineated in Phases I, II and III of Exhibits
,~A„ ..g.. and ..~..
(b) The City will only reimburse Big Wheel Development §0%
3.4 ~ of the cost of the installation of the •-.~t~ana
s~::a-~=~ public improvements in Phase III, with the
total reimbursement by the City not to exceed $600 per
lot or a total .not to exceed $36,000 out of a
projected cost of the public improvements in Phase III
of $975,000.
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~.
Section 8
Big Wheel Development will install water and
sanitary sewer lines, as well as storm sewer lines, catch
basins, etc., to service the lots in Block 1 and Block 10 of
Vista Village Subdivision that are on the north side only of
Grammercy Street as well as other improvements as delineated in
Phase IV ,e€ Exhibit °D" by May 1, 2012.
Section 9: Big Wheel Development, Inc. will enter into
construction agreements to perform the improvements delineated
in this agreement. If Big Wheel Development, Inc. uses its own
resources or a related construction company, it must provide
information and documentation that the costs thereof are equal
to or less than if it was bid out, as to avoid the undue loading
of costs, collusion or fraud as prohibited by Section 212.074
Local Government Code. Also, all plans and specifications for
public improvements will need to be approved by the City as is
required of other developers.
The City has the option to construct the public
improvements, with Big Wheel Development, Inc. reimbursing the
City for its share (50%) of the costs.
Section 10: So long as Big Wheel Development, Inc. is in
substantial compliance with the timetable in this agreement, the
City and Big Wheel Development, Inc. agree to the following as
to permit fees to be charged:'
~~ z.developer participation contract.2007-4 y.
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(a) Building permit fees will be waived.
(b) Water tap fees will be waived.
(c) Sewer tap fees will be waived.
Section 11: If Big Wheel Development, Inc., or
affiliated companies,. do .not build (construction completed and
certificate of occupancy issued) at least sixty (60) single
family residences on the tract, by December 31, ~-BA-9 2010, then
Big Wheel Development, Inc. will repay the City as follows:
Amount to be repaid equals the number of homes not built
divided by 60 times the amount of moneys that the City has
paid for improvements, materials and studies.
Section 12: Pursuant to Section 212.072 Local Government
Code, the total cash and material participation of the City
shall not exceed thirty percent (30%) of the total contract
price for the proposed public improvements as described in
Exhibits "A", "B".,. "C" aad "D" for said subdivision and this
agreement provides a total incentive including the waiver of
building permit fees, water tam fees and sewer tav fees of less
than 30$. Big Wheel Development estimate s. the total contract
price for the proposed public improvements to be over
$2,500,000, with Phase I costing $650,000, Phase II costing
$875,000, and Phase III costing $975,000. Notwithstanding, the
City's total reimbursement shall not exceed $193,000 in cash
reimbursements, plus the value of the material provided or to be
provided by the City for the drainage work on Drummond Street.
z.developer participation contract.2007-4 - -io
Section 13: All of Big Wheel Development, Inc.'s books
and other records, as they pertain to this project and public
improvements that the City participates in, shall be available
for inspection by the City, all as provided for by Section
212.074 (b) Local Government Code.
Section 14: This agreement will be construed in
accordance-with the laws of Texas, as well as the Ordinances of
the City of Port Arthur.
Section 15: The venue of all causes of action will be in
Jefferson County, Texas.
Section 16: The homes to be built shall be sold to
homebuyers without regard to race; religion or national origin,
and Big Wheel Development, Inc. will comply with the fair
housing laws, as delineated under Chapter 46 of the Code of
Ordinances of the City of Port Arthur and as described by State
and Federal Law. Subject to the availability of funds, the
City may provide down payment assistance to qualified buyers in
accordance with HUD guidelines and as determined in the
discretion of the City and HUD.
Section 17: Reasonable delays (not to exceed thirty(30)
days) in the performance of this agreement may be approved by
the City Manager, so long as "the delays are not caused by the
acts or omissions of Big Wheel Development, Inc.
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Section 18: Notice to the parties shall be as follows:
TO: CITY OF PORT ARTHIIR
ATTN: Stephen Fitzgibbons
City Manager
444 Fourth Street_
P. O. Box 1089
Port Arthur, TX 77641-1089
T0: BIG WHEEL DEVELOPMENT, INC.
ATTN: Jimmie Wheeler
8300 Bissonnet, Suite 525
Houston, TX 77074
Section 19: The City makes no representation as to the
marketability of said tracts or the suitability of them as
single family. residences. Big Wheel Development, Inc. has
relied on its own feasibility studies thereon and its own
inspection as to the condition and existence of the utilities on
or adjacent to the property.
Section 20: If the City does not comply with the terms
of this Agreement, then Big Wheel Development, Inc. may
terminate this agreement with thirty (30) days written notice.
If Big Wheel Development, Inc. does not comply with the terms of
this Agreement, then the City may terminate this agreement with
thirty (30) days written notice.
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SIGNED AND„AGREED1TO+onitliis .the day of ._ 2008.
SIG WHEEL DEVELOPMENT, INC.
(Printed Name)
$~~
~P:CKNOWLEDGNENT
STATE OF TEXAS
COiJNTY OF _ ~
t,
BEFORE ME, .the undersigned Notary Public, on this day,
personally appeared ,known ,to me to be the. person
whose name is described. in the foregoing instrument, .and
acknowledged to me that he/she executed the sameyas the act and
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deed of Big Wheel Development, Inc. .for the,purposes,and
=ar.: ..
, ,. 1 5.9:..tvr J. c..,ac `_. .i ..-:a t:.a r .^,s..: h
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considerations therein expressed .and the capacities therein
stated.
3
'GIVEN DNDER MY SAND AND SEAL OF OFFICE, this the day of
2008.
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.,. t .. .. ..~ aucd
Notary Public, State of Texas
ll
EXHIBIT °`A"
PHASE I
ROADS
Big Wheel Development., Inc. shall build roads as to extend
Drummond from Austin Avenue to Shreveport and b••~'a ^--~---^ ^F
the '' '' pent that 's ad7aeent to e_ a &- '
~a^^~ ..
STORM SEWERS
Big Wheel Development, Inc. shall install and replace Storm
Sewer Inlets and lines on Drummond Street (from Austin to
Shreveport). As to the drainage work on Drummond, the City will
n c n , :., ,., ., , ,
provide ~~-,~1~eet e€ 38 1[BPB~pe, 38 ' inea' €e °
}-pipe 136 '~~tea~-€eet e€ 38" re'n€ereed ee~re~e€e~~3~
"', ° ` 8' , rein€ereed eenerete-pipe `' ~ ' g--sand
aad the concrete for the catch basins. Big Wheel Development,
Inc. will install 'the pipes, construct the catch basins, remove
existing pipe and catch basins and 'take the removed material to
the landfill. The City will accept the materials at the
landfill at no charge to Big Wheei Development, Inc. Big wheel
Development, Inc. will tie-in the storm sewer line to the
Shreveport drainage system.
SANITARY SEWERS AND WATER LINES
Big Wheel Development, Inc. shall build sanitary sewer lines and
such other sanitary sewer construction, as well as water. lines,
as :is required by City Code and professional engineering
analysis between Drummond and Tartan from Austin Avenue to
Shreveport Avenue, ~~ -'^^^ *--~^ ' ~ ~ '
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After said improvements are constructed by Big Wheel Development
Inc. to City specifications, pass City inspection and are
accepted, Big wheel Development, Inc. shall commence
constructipn of single family residences on Lots 18 to 32 on
Block 8 and Lots 4 to 17 on Block 7, ~~s ate 1 ,~-~2~=
for up to 39.29 single family residences.
Time Line: By Beeembe~ 3-i, 2&(~~ July 31, 2008
z.developer participation contract.2007-4 is
SRBIBIT "B"
PHASE II
ROADS
Big Wheel Development, Inc. shall build a road on Tartan Street
(from Austin to Shreveport) and build a op rtion of the road on
Shreveport that is adjacent to Lots 1 to 10 on Block 11,
connecting to Edgeport Addition as well as extend Austin from
Tartan to the southern boundary of Vista Village subdivision.
STORM SEWERS
Big Wheel Development, Inc. shall build new
connected to the line on Drummond Street Eo
Austin to Shreveport) as well as along lots
of Shreveport, Storm Sewer Lines and Inlets
sewer construction as is required by City C
engineering analysis.
Storm Sewer Lines
Tartan Street (from
1 to 10 of Block 11
and such other storm
ode and professional
SANITARY SEWER AND WATER LINES
Big Wheel Development, Inc. shall build sanitary sewer line,
water line, and such other sanitary sewer line, or water line,
as well as water-line construction as is required by City Code
and professional engineering analysis south of Tartan Street
from Austin Avenue to Shreveport Avenue as well as along lots 1
to 10 of Block 11 of Shreveport.
RETENTION/DETENTION
Depending on the engineering studies performed, Big wheel
Development, Inc. may need to build a detention pond or a
retention pond with pumping facilities.
After said improvements are constructed by Big Wheel
Development, Inc. to City specifications, pass City inspection
and are accepted by the City (road, water lines, and storm sewer
z.developer participation contract.2007-4 "
lines), Big wheel Development, Inc. shall commence construction
of single family residences on Lots 18 to 34 on Block 7 and Lots
1 to 16 on Block 6, as well as along lots 1 to 10 of Block 11 of
Shreveport for up to 33 43 single family residences.
Time Line: By December 31, 2-0-&8 2009
z.developer participation contract.2007-4 18
ERHIBIT "C"
PHASE III
ROADS
Big wheel Development, Inc. shall complete Tartan Street road.
STORM SEWERS
Big Wheel Development, Inc. shall complete Storm Sewer Lines,
inlets and such other storm sewer construction as is required by
City Code and professional engineering analysis on Tartan
Street.
SANITARY SEWER AND WATER LINES
Big Wheel Development, Inc. shall build sanitary sewer line,
water line, and such other sanitary .sewer line, or water line,
as well as water line construction as is required by City Code
and professional engineering analysis on Tartan Street
RETENTION/DETENTION
Depending on the engineering studies performed at the direction
and cost of Big Wheel Development, Inc., Big Wheel Development,
Inc. may need to expand or deepen the detention pond or
retention pond as well as to increase the capacity of the
pumping facilities.
After said improvements are constructed by Big Wheel
Development, Inc. to City specifications, pass City inspection
and are accepted by the City (road, storm sewer lines, detention
or retention pond and pumping facilities), Big Wheel
Development, Inc. shall commence construction of single family
residences on Lots 13 to 20 on Block 4 and Lots 6 to 18 on Block
5, for up to 23 single family residences.
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Time Line: By December 31, ~-993 2010
.-.
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EXBIBIT "D"
PBASE ZV
ROADS
Big Wheel Development,'Inc. shall build a road along Grammercy,
extension of Shreveport from Linkwood to the Northwest boundary
of Vista Village and the. extension of Ayeshire to the Northwest
boundary of-Vista Village Subdivision.
STORM SEWER
Big wheel Development, Inc. shall complete storm sewer lines and
such other storm sewer construction as is required by City Code
and professional-engineering analysis on Grammercy Street,
Ayeshire, and Shreveport.
WATER AND SEWER LINES
Big .Wheel Development, Inc. shall install water and sewer lines
and such other water and sewer construction as is required by''
City Code and professional engineering analysis to serve Lots 4
to 23 of Block 1.
After said improvements are constructed by Big Wheel
Development, Inc. to City specifications,-pass City inspection
and are accepted by the City (road), Big Wheel Development, Inc.
shall construct single family residences on Lots 4 to 23 on
Block 1, Lots 1 to 13 of Block 2, Lots 1 to 21 of Block 9, and
Lots 1 to 21 of Block 10 for up to 68 single family residences.
Time Line: By May 1, 2012
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EXHIBITS "A" TO "D" TO AMENDMENT NO. 1 WILL BE PROVH)ED PRIOR TO
THE MEETING OR AT THE MEETING
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