HomeMy WebLinkAboutPO 6881: AMENDING ORD 20-58 AS IT PERTAINS TO THE DEVELOPER PARTICIPATION AGREEMENT WITH H&P ENGINEERING & CONSTRCUTION, INC P.O. No. 6881
07/08/20 ht
ORDINANCE NO.
AN ORDINANCE AMENDING ORDINANCE NO. 20-58 AS IT
PERTAINS TO THE DEVELOPER PARTICIPATION
AGREEMENT BETWEEN THE CITY OF PORT ARTHUR AND
4 H&P ENGINEERING & CONSTRUCTION, INC.
WHEREAS, on June 22, 2020, pursuant to §212.071 and §212.072 of the Texas Local
Government Code, the City entered into a Developer Participation Agreement with H&P
Engineering & Construction, Inc. for the proposed development project of sixty (60) single
family residential townhome units on 4.658 acres of land located at Willowwood Lane in Port
Arthur, Texas; and
WHEREAS, under the developer participation contract, H&P Engineering agreed to
construct the public improvements and the municipality shall participate in the reimbursement
cost not to exceed 30% of the projected cost; and
WHEREAS, in addition to the cost reimbursement, the City will waive the building
permit, water and sewer tap and fees in accordance with the City's Code of Ordinance as
part of the incentive program; and
WHEREAS, there is a need to amend Sections 4 and 8 of the Agreement to clarify the
specific details of said improvement project; and
NOW THEREFORE, BE IT ORDAINED BY THE CITY OF PORT ARTHUR, TEXAS:
Section 1. That the facts and opinions in the preamble are true and correct.
Section 2. That pursuant to Texas Local Government Code, Subchapter C.
Developer Participation in Contract for Public Improvements, §212.072. Duties of Parties
Under Contract, Sections 4 and 8 of the Developer Participation Agreement between the City
of Port Arthur and H&P Engineering and Construction are hereby amended, in substantially
the same form, as delineated in Exhibit "A".
Section 3. That a copy of the caption of this Ordinance be spread upon the Minutes
of the City Council.
Section 4. That this Ordinance shall take effect immediately upon its approval.
READ, ADOPTED AND APPROVED on this 21St day of July A.D., 2020, at a Regular
Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES:
s.po6881
Mayor:
,
Councilmembers:
NOES:
Thurman Bill Bartle, Mayor
ATTEST:
Sherri Bellard, City Secretary
APPROVED AS TO FORM:
1/f/t
Valecia "7 • - . ity Attorney
APPROVED FOR ADMINISTRATION:
Ronald Burton, City Manager
Page 2
Exhibit "A"
Page 3
Code . The City will be a beneficiary of said performance bond. H
& P Engineering & Construction, Inc . will have liability insurance
of a minimum of $1, 000, 000 . 00 , and hold the City harmless from its
construction activities .
Section 4 : The City of Port Arthur will pay for 30% of
the following costs, with the total reimbursement by the City not
to exceed $194, 863 . 50 plus the waiving of building permit, water
and sewer tap fees out of a projected cost for the public
improvements of $649, 545 . 00 on the following:
• Engineering & Final Design
• Environmental and Geo Technical Studies
• Road or roads, water lines, sanitary sewer lines,
storm sewer lines, ground raising, catch basins,
other storm sewer construction, underground utility
extensions, landscaping, paving, and
other ancillary improvements .
The City' s share of these costs will be paid within
thirty (30) days after these improvements and studies have been
completed in accordance with the City' s Code of Ordinances and the
public improvements have been accepted by the City. The City will
receive a copy of all of the studies . H & P Engineering &
Construction, Inc . will complete these improvements by March 31,
2022 .
Section 5 : H & P Engineering & Construction, Inc . will
enter into construction agreements to perform the improvements
Developer Participation Contract
3
delineated in this agreement . If H & P Engineering & Construction,
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 Texas 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 .
Section 6 . The City has the option to construct the
public improvements, with H & P Engineering & Construction, Inc .
reimbursing the City for its share of the costs .
Section 7 : So long as H & P Engineering & Construction,
Inc . is in substantial compliance with the timetable in this
Agreement, the City and H & P Engineering & Construction, Inc .
agree that the City will waive building permit fees, water tap
fees, and sewer tap fees .
Section 8 . If H & P Engineering & Construction, Inc . , or
affiliated companies, does not build (construction complctcd and
certificate of occupancy i^cued) complete the improvements of at
lea t sixty (60) lots (1, 2 & 3 bedrooms) cinglc family residential
townhomcc units on the tracts of land as delineated in Exhibit "A"
by March, 2022, then H & P Engineering & Construction, Inc . will
repay the City as follows :
Developer Participation Contract
4
Amount to be repaid equals the number of lots homes not
built improved divided by 60 times the amount of moneys
that the City has paid for the improvements and the
amount of monies that the City has waived in building
permit fees, water tap fees, and sewer tap fees .
Section 9 : Pursuant to Section 212 . 072 Local Government
Code, the total cash participation of the City shall not exceed
thirty percent (30%) of the total contract price for the proposed
public improvements for said development and this agreement
provides a total cash incentive of less than 30% . H & P Engineering
& Construction, Inc . estimates the total contract price for the
proposed public improvements to be over $649, 545 . 00 .
Notwithstanding, the City' s total reimbursement shall not exceed
$194, 863 . 50 in cash reimbursements . The total cash incentives and
waivers for building permit fees, water tap fees, and sewer tap
fees will not exceed thirty percent (30%) of the total contract
price for the proposed public improvements .
Section 10 . It is an essential term of this agreement that
the single family residences will be sold on the market and not to
any person or other organization that will take it off the tax
rolls .
Section 11 : All of H & P Engineering & Construction,
Inc' s . books and other records, as they pertain to this
development project and public improvements that the City
Developer Participation Contract