The URL can be used to link to this page

Home My WebLink AboutPO 5297:ICON BUILDERS, LLC.INTER OFFICE MEMO To: Mayor, City Council & City Manager From: Mark T. Sokolow, City Attorney ~q~ ~{~--- Subject: P. O. No. 5297 - October 15, 2002 Council Meeting Date: October 10, 2002 Attached is P. O. 5297 authorizing the City Manager enter into a developer participation contract with Icon Builders, LLC. to MTS/ts Attachment cc: Director of Public Works Director of Utility Operations Director of Planning Director of Finance ICON BUILDERS, LLC Attn: K. T. Akbari 4424 Markwood Port Arthur, TX 77642 ORDINANCE NO. P.O. No. 5297 10/10/02 ts AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A DEVELOPER PARTICIPATION. CONTRACT WITH ICON BUILDERS, LLC WHEREAS, the City of Port Arthur and Icon Builders, LLC desire to enter into a Developer Participation Contract pursuant to Section 212.071 to 212.074 Local Government Code; and WHEREAS, Icon Builders, LLC plans to develop the tract as described in Exhibit ~A", as to provide up to sixty-seven (67) single lots whereon single family residences will be and Icon Builders, constructed; WHEREAS, tract; and WHEREAS, LLC has an option to purchase said Icon Builders, LLC is planning the site development thereof; and WHEREAS, the improvements to be constructed will be a road, water lines, sanitary sewer lines, street lights and storm sewers; and WHEREAS, once these improvements are constructed to City specifications, they will be deeded to the City as public improvements; and WHEREAS, Icon Builders, LLC is requesting that the City of Port Arthur participate in the cost of some of these improvements as six (56) single 2011. NOW THEREFORE, BE IT ORDAINED COUNCIL OF THE CITY OF PORT ARTHUR: to develop these lots and to have up to fifty- family residential units built by December 31, AND RESOLVED BY THE CITY Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Manager is herein authorized to enter into a Developer Participation Contract with Icon Builders, LLC in substantially the same form as attached as Exhibit "A". 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., 2002, at a Regular Meeting of the City Council of the City of Port Arthur, vote: AYES: Mayor , Council: Texas, by the following City NOES: ATTEST: OSCAR G. ORTIZ, MAYOR EVANGELINE GREEN, CITY SECRETARY APPROVED AS TO FORM.- MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTP~ATION: STEVE FITZGIBBONS, CITY MANAGER APPROVED AS TO THE AVAILABILITY OF FUNDS: REBECCA UNDERHILL, DIRECTOR OF FINANCE (67) single constructed; WHEREAS, tract; and WHEREAS, DEVELOPER PARTICIPATION CONT~ACT WHEREAS, the City of Port Arthur and Icon Builders, LLC desire to enter into a Developer Participation Contract, pursuant to Sections 212.071 to 212.074 Local Government Code; and WHEREAS, Icon Builders, LLC plans to develop the tract as described in Exhibit "A", so as to provide up to sixty-seven lots whereon single family residences will be and Icon Builders, LLC has an option to purchase said Icon Builders, LLC is planning the site development thereof; and the improvements to be constructed will be a road, sanitary sewer lines, street lights and storm WHEREAS, water lines, sewers; and WHEREAS, once these improvements are constructed to City specifications, they will be deeded to the City as public improvements; and WHEREAS, Icon Builders, LLC is requesting that the City of Port Arthur participate in the cost of some of these improvements as to develop these lots and to have at least fifty-six eight (8) residential units in the subdivision upon z.developer participation contract_Icon 1 (56) single family residential units built within years, and up to sixty-seven {67) single family full build-out. NOW THEREFORE, the city of Port Arthur and Icon Builders, LLC agree to the following: Section One: The facts and opinions in the preamble are true and correct. Section Two: Icon Builders, LLC or affiliated companies will purchase the tract as described in Exhibit UA" on or before March 1, 2003, with funds provided by Icon Builders, LLC or with funds obtained from third parties. Section Three: Icon Builders, LLC will proceed to plat the property substantially as described in Exhibit "A" and in accordance with State law and City Ordinances. Section Four: Icon Builders, LLC will enter into construction contracts to construct the public water lines, public sanitary sewer lines, street lights, public storm sewers and a public road within the subdivision, all of which will be designed to City specifications. Icon Builders, LLC will take such precautions and provide such information to the City that there is no undue loading of cost, collusion or fraud as prohibited by Section 212.074 Local Government Code. If Icon Builders, LLC uses its own resources or a related construction company, they must show that the construction costs will be equal or less than if it was bid out. Section Five: In accordance with Section 212.073 Local Government Code, Icon Builders, LLC will execute a performance bond for the construction of the improvements to ensure completion of the project. The bond 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. Section Six: z.developer participation ¢ontrac% Icon Icon Builders, LLC, will present the construction contract and performance bond to the City prior to June 1, 2003. Once presented, the City will loan to Icon Builders, LLC, 30% of the total contract 2 Section Seven: Section Eight: Section Nine= Section Ten: Section Eleven: Section Twelve: price of the water lines, sanitary sewer lines, street lights, storm sewers and a road, ("the improvements") or $160,000, whichever is less. Icon Builders, LLC and affiliated companies will sign such notes at two percent (2%) interest per annum, security agreements and liens as are approved by the City Attorney and Director of Finance. The City further agrees to sign such subordination agreements are as necessary and reasonable for third party financing, such to be approved as to form by the City Attorney. Also, the City will release the liens on individual lots as they are transferred to homebuyers from time-to-time. If Icon Builders, LLC, or affiliated companies, build (construction completed and certificate of occupancy issued) an average of seven (7) single family residences per year, and at least fifty-six (56) single family residences on the tract described in Exhibit ~A" by December 31, 2011, then the City will waive this loan and release all liens. If Icon Builders, LLC, or affiliated companies, do not build as delineated above, Icon Builders, LLC will repay the City as follows: Amount to be repaid equals the number of homes not built divided by 56 times $160,000, plus accrued interest. Ail of Icon Builders, LLC's books and other records shall be available for inspection by the City, all as provided for by Section 212.074(b) Local Government Code. This agreement will be construed in accordance with the laws of Texas, as well as the Ordinances of the City. The venue of all causes of action will be in Jefferson County, Texas. The homes to be built shall be sold to homebuyers without regard to race, religion or national origin, and Icon Builders, LLC 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 delineated by federal.and state laws. Section Thirteen: Notice to the parties shall be as follows: TO: CITY OF PORT ARTHUR ATTN: Stephen Fitzgibbons, City Manager 444 Fourth Street P. O. Box 1089 Port Arthur, TX 77641-1089 TO: ICON BUILDERS, LLC ATTN: K. T. Akbari 4424 Markwood Port Arthur, TX 77642 Section Fourteen: The City makes no representations as to the marketability of said tracts or the suitability of them as single family residences. Section Fifteen: At the discretion of the City, any dispute as to this matter can first be referred to mediation or arbitration before the American Arbitration Association. Section Sixteen: If either party does not comply with terms hereof, then either party may terminate this agreement with thirty (30) days written notice. z.developer participation contract_Icon 4 SIGNED AND AGREED TO on this the , 2002. day of ICON BUILDERS, LLC WITNESSED BY: SIGNED AND AGREED TO on this the __ day of , 2002. CITY OF PORT ARTHUR WITNESSED BY: z.developer participation contract_Icon 5 EXHIBIT "A" Lot 26 Lot 25 Lot24 Golf Course Lot 1 Lot32 Lot33 lot 65 Lot38 Lot16 Lot15 Lot14 lot 41 lot 40 Lot 53 Lot 54 Golf Course Conceptual 67 Lots 17,091 Ac. Tract