HomeMy WebLinkAboutPO 5865: OAKMONT PROPERTIES (ANCHOR DRIVE) - DEVELOPMER PARTICIPATION CONTRACTinteroffice
MEMORANDUM
To: Mayor, City Council,. and City Manager
From: Mark T. Sokolow, City Attorney %~„~ ~,1,~,C~
Date: March 20, 2008.
Subject: P. O. No. 5865; Council Meeting March 25, 2008
Attached is P. O. No. 5865 as it pertains to a Developer
Participation Contract with Oakmont Properties, Inc. as to extend
Anchor Drive, which will provide an incentive for a new 246 unit,
up-scale, market-rate apartment complex. Mr. Hendricks has
indicated that the developer may request a few changes in the
attached agreement. If this is the case, we will notify you of the
proposed changes.
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Attachment
cc: VIA FACSIMILE (409) 895-0047
Jim Hendricks
JIM HENDRICKS PROPERTIES
VIA FACSIMILE (713) 681-7774
William M. Burney, III
President
OAKMONT PROPERTIES, INC.
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P. 0. No. 5865
03/20/08 is
ORDINANCE N0.
AN ORDINANCE AS IT PERTAINS TO A DEVELOPER
PARTICIPATION CONTRACT WITH OAKMONT
PROPERTIES, INC. AS TO EXTEND ANCHOR DRIVE AS
TO PROVIDE AN INCENTIVE FOR A NEW 246 UNIT UP-
SCALE, MARKET-RATE APARTMENT COMPLEX
WHEREAS, it is deemed in the public interest to enter into a
Developer Participation Contract with Oakmont Properties, Inc. as
to extend Anchor Drive as to provide an incentive for a new 246
unit up-scale, market-rate apartment complex, in substantially the
same form as attached hereto as Exhibit "A".
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF PORT ARTHUR: ,
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 Agreement with Oakmont
Properties, Inc. as to extend Anchor. Drive as to provide an
incentive for a new 246 unit up-scale, market-rate apartment
complex, in substantially the same form as attached hereto 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., 2.008, at a Council.Meeting of. the. City Council of the. City
of Port,Arthur, Texas, by the following vote:
AYES: Mayor
z.po5866
City Council
NOES:
MAYOR
ATTEST:
ACTING CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY ~~~~"
APPROVED FOR ADMINISTRATION:
CITY MANAGER
APPROVED AS TO THE AVAILABILITY OF FUNDS:
DIRECTOR OF FINANCE
z.po5865
EXHLHIT "A"
TO THE RESOLUTION
STATE OF TEXAS §
COUNTY OF JEFFERSON §
DEVELOPER PARTICIPATION CONTRACT
WHEREAS, the City of Port Arthur and Oakmont Properties,
Inc. desire enter into a Developer Participation Contract,
pursuant to Sections 212.071 to 212.074 Local Government Code,
V.T.C.A.; and
i
WHEREAS, Oakmont Properties, Inc. has .indicated that it
will purchase a tract 'of land adjacent to Lake Arthur, as
denoted in Exhibit "A", as to construct a 246 unit, up-scale,
market-rate apartment complex that will stay on the tax rolls;
and
WHEREAS, the improvements to be constructed by Oakmont
Properties, Ino. will be the extension of Anchor Drive, with the
ancillary extension of sidewalks, water, drainage, and sewer 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, Oakmont Properties, Inc. is requesting the City
participate in the cost of some of the improvements as to
develop this tract so that at least a 246 unit up-scale, market-
z.developer participation contract .anchor drive
i
rate apartment complex will be built in the-area, as denoted in
Exhibit "A", with a deadline of April 1,;2009..
NOW THEREFORE, the City of Port Arthur and Oakmont
Properties, Inc. agree to the following:
Section 1: The facts and opinions in the preamble are
true and correct.
Section 2: Timetable for purchase of the tract for
development:
• Oakmont Properties, Inc. or its affiliated companies
will provide documentation that it has purchased the
land, as described in Exhibit "A", by May 15, 2008.
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 Oakmont Properties, Inc.
Section 3. The developer will immediately commence
construction and immediately clear and grub the site. The
developer will also take such action as to maintain the progress
of the construction without delay and stoppages.
Section 4: Oakmont Properties, Ino. will execute a
performance bond for the construction of
(extension of Anchor Drive and ancillary
drainage, and sewer improvements) to ens
project. The performance bond will be in
The bond must be executed by a corporate
with Chapter 2253 of the Government Code
the improvements
sidewalks, water,
are completion of the
the amount of $700,000
surety in accordance
The City will be a
beneficiary of said performance bond. Oakmont Properties, Inc.
z. developer participation contract .anchor drive
z
will have liability insurance of $1,000,000, and hold the City
harmless from its construction activities.
Section 5: The City of Port Arthur will pay for 29°s of
the following costs, with the total reimbursement by the City
not to exceed $200,000 out of a projected cost for the public
improvements of $700,000 on the following:
• Extension of Anchor Drive, sewer lines, water
lines, and drainage. lines and ancillary
improvements as described in Exhibit "A"
The City's share of these costs will be paid within thirty
(30) days after the completion of these improvements, 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 engineering and geo-technical
studies. Oakmont Properties, Inc. will complete these
improvements by December 31,2008.
Section 6. Oakmont Properties, Inc. will enter into
construction agreements to perform the improvements delineated
in this agreement.. If Oakmont Properties,, 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
z.developer par[i cipation contract .anchor drive
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 Oakmont Properties, Inc.
reimbursing the City for its share of the costs.
Section 7.
If Oakmont Properties, Inc., or affiliated
companies, do not build (construction completed and certificate
of occupancy issued) at least a 246 unit, up-scale, market-rate
apartment complex on the tract, as denoted in Exhibit "A", by
April 1, 2009, then Oakmont Properties, Inc. will repay the City
as follows:
"Amount to be repaid equals the number of apartment units
not built divided by 246 times the amount of moneys that.
the City has paid for improvements."
Section 8: 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, as described in Exhibit "A", and
this agreement provides a total incentive of less than 30%.
Oakmont Properties, Inc. estimates the total-contract price for
the proposed public improvements to be. over $700,000.
I
Notwithstanding, the City's total reimbursement shall. not exceed
$200,000 in cash reimbursements.
Section 9: All of Oakmont Properties,. Inc.'s books and
other records, as they pertain to this project and public
improvements that the City participates in, shall be available
z. developer participation cons ract.anchor drive -
a
for inspection by the City, all as provided for by Section
212.074(b) Local Government Code.
Section 10: This agreement will be construed in
accordance with the laws of Texas, as well as the Ordinances of
the City of Port Arthur.
Section 11: The venue of all causes of action will be in
Jefferson County, Texas.
Section 12: The apartment units to be built shall be
leased to renters without regard to race, religion or national
origin., and Oakmont Properties, 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.
Section 13: 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 Oakmont Properties, Inc.
Section. l4: 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 77641-1OS9
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TO: OAKMONT PROPERTIES, INC.
ATTN: William M. Burney, III
President
109 North Post Oak Lane, Suite 400
Houston, TX 77024
(713) 681-5566
(713) 681-7774 (FAX)
Section 15: The City makes no representation as to the
marketability of said tract or the suitability of them as an
apartment complex. Oakmont Properties, 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 16: If the City does not comply with the terms
of this Agreement, then Oakmont Properties, Inc .. may terminate
this agreement with thirty (30) days written notice. If Oakmont
Properties, Inc. does not comply with, the terms of this
Agreement, then the City may terminate this agreement with
thirty (30) days written notice.
Section 17. It is an essential term of this agreement
that the apartment complex shall stay on the tax rolls.
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6
SIGNED AND AGREED TO on this the day of
2008.
OAKMONT PROPERTIES, INC.
By:
(Printed Name)
ACKNOWLEDGMENT
STATE OF TEXAS ~
§ i
COUNTY OF §
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 same as the act and
deed of Oakmont Properties, Inc., for the purposes and
considerations therein expressed, and the capacities therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE,. this the day of
2008.
Notary Public, State of Texas
z.devel oper participation contract.anchor drive
SIGNED AND AGREED TO on this the day of
2008.
CITY OF PORT ARTHUR
By:
STEPHEN FITZGIBBONS, CITY MANAGER
ACKNOWLEDGMENT
STATE OF TEXAS ~ §
§
COUNTY OF JEFFERSON §
BEFORE ME, the undersigned Notary Public, on this day,
personally appeared Stephen Fitzgibbons, City Manager, known to
me to be the person whose name is described in the foregoing
instrument, and acknowledged to me that he/she executed the. same
as the act and deed of the City of Port Arthur, for the purposes
and considerations therein expressed, and the capacities therein
stated..
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day
of
2008.
Notary Public, State of Texas
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EXHIBIT "A"
TO THE AGREEMENT
Anc or Drive Extension
Presented by
Jim Hendricks
Jim Hendricks Properties
Anchor Drive Extension
complete access
Jimmy Johnson ~Ivd to Lake. Arthur Dr
V~/hat do we want to do?
Extend Anchor Drive
• Improve Access to Lake Arthur Drive
• Improve safety in the area (U-Turns on 69)
• Improve School. Access (age 4 to 18 yrs)
• Return on investment to Port Arthur by
way of new development
• Immediate up Scale Apartment Complex
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Up Scale
Markeg Rent
artmen complex
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rnr~edite Impact
• Improved Area access & Safety
• New up scale Market Rate Apartment
Complex with 246 Units
• ~ $11million to Tax rolls + More in Future
•$85,000+ per year to Port Arthur
• ~ Proven History for Rdditional Development
Overview
• Total Cost to extend Anchor Dr $700,000
( includes road with sidewalks, water,
drainage ~ sewer).
• Apartment Development project brings
$500,000 of that cost
Requesting from Port Arthur $200,000 to
Extend Anchor Dr to Lake Arthur Dr.
Re~u~°n on
investment
• $200,000 Pay Back Less Than Three Yrs.
• Improved Safety
Improved Community Access