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HomeMy WebLinkAboutPO 5855: LAR PROPERTIES, L.C.interoffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney ~'~~ ~. Date: April 4, 2008 Subject: P. O. No. 5855; Council Meeting April 1, 2008 Attached is P. O. No. 5855 authorizing the City Manager to execute a Developer Participation Contract with LAR Properties, L.C. (Requested by the City Manager.) We are still discussing this agreement- with the developer and you will be notified of any proposed changes. MTS:gt Attachment cc: J. M. "Mike" Rebescher LAR PROPERTIES, INC. z.po5855 memo P. O. No. 5855 04/04/08 is ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A DEVELOPER PARTICIPATION CONTRACT WITH LAR PROPERTIES, L.C. (REQUESTED BY THE CITY MANAGER) WHEREAS, the City Council had approved an Incentive Agreement with Platinum Choice Investments, LLC, per Ordinance No. 04-74, on the land as described in Exhibit "A"; and WHEREAS, this development wa:s not undertaken; and WHEREAS, the City of Port ~~rthur and LAR Properties, L.C. desire to enter into a Developer :Part:icipation Contract, pursuant to Section 212.071 to 212.074 of 'the Local Government Code; and WHEREAS, LAR Properties, L.C. plans to develop a subdivision on the same tract, as described i:n Exhibit "A", as to provide for the construction of sixty-six (66) single family residences; and WHEREAS, LAR. Properties, L.C. is planning the site development thereof; and WHEREAS, the improvements to be constructed will be a road or roads, waterlines, sanitary sewer lines, street lights, and storm sewers with a projected cost of over $750,000; and WHEREAS, once these improvE~mer~ts are constructed to City specifications, they will be deeded to the City as public improvements; and WHEREAS, LAR Properties, L.C. is requesting that the City of Port Arthur participate in the cost of these improvements as to develop these lots and to have up to sixty-six (66) single family z.po5584 residential units built by December 31, 2013. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the fact: and opinions in the preamble are true and correct. Section 2. That the City Manager, or his designee, is herein authorized to enter into a Developer Participation Contract with LAR Properties, L.C., i.n substantially the same form as attached hereto as Exhibi1~ "A" as to provide an incentive of up to $200,000 in cash reimbursement and an incentive of $25,000 as to account for waivers of building permit fees, water tap fees, and sewer tap fees. Section 3. That the Incentive Agreement with Platinum. Choice Investments, L.L.C. is herein terminated and a duly authorized representative of Platinum Choice Investments, L.L.C. shall sign this Ordinance agreeing herewith. Section 4. That this being an Ordinance which does not carry a penalty, and does not require publication, it shall take effect immediately from and after its passage. Section 5. That a copy of tYie caption of this Ordinance be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2008, at a Council Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: z.po5584 AYES: Mayor City Council NOES: ATTEST: CITY SECRETARY APPROVED AS TO FORM: /^Zr..,~ ~v~ MAYOR CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER APPROVED AS TO THE AVAILABILITY OF FUNDS: DIRECTOR OF FINANCE AGREED TO: PLATINUM CHOICE INVESTMENTS, L.L.C. BY: DATE: z.po5584 EXHIBIT "A" STATE OF TEXAS § COUNTY OF JEFFERSON § DEVELOPER PARTICIPATION CONTRACT WITH LAR PROPERTIES, L.C. WHEREAS, the City of Port Ar1~huY~ and LAR Properties, L.C. desire to enter into Developer Participation Contract pursuant to Sections 212.071 to 212.074 Local Government Code, V.T.C.A.; and WHEREAS, LAR Properties, L.C. has indicated that it has purchased lots as denoted in Exhibit "A" as to construct sixty- six (66) single family residences; and WHEREAS, the improvements to be constructed by LAR Properties, L.C. 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 too the City of Port Arthur as public improvements without any liens or encumbrances; and WHEREAS, LAR Properties, L.C. is requesting that the City of Port Arthur participate in the cost of these improvements as to develop these lots so that at least sixty-six (66) single family residential units will be built in the area denoted as z.lar_developer participation contract i Exhibit "A" by LAR Properties, L.C. with a deadline of December 31, 2013. NOW THEREFORE, the City of Pert Arthur and LAR Properties, L.C. agree to the following: Section 1: true and correct. Section 2: development: The facts and opinions in the preamble are Timetable for purchase of Lots for (a) LAR Properties, L.C., o:r its affiliated companies, will provide documentation that it has purchased the land as described in ExlZibi.t "A". As a part of said, purchase, any and all delinquent taxes, if any, on said property shall have been paid by the original owner or by LAR Properties, L.C. Section 3: On or before May 19, 2008, the developer will immediately commence construetic>n and immediately clear and grub the site. The developer will also take such action as to maintain the progress of the cons~truc:tion without delay and stoppages. Section 4: LAR Properties, I,. C. will execute a performance bond for the construction of the improvements to ensure completion of the project. The performance bond will be in the amount of $750,000. 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. LAR z.lar_developer participation contract z Properties, L.C. 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 270 of the following costs, with the total reimbursement by the City not to exceed $200,000 out of a p:roje:cted cost for the public improvements of $750,000 on the following: • Engineering & Fina:L Design • Environmental and c;eo Technical Studies • Public roads, sewer lines, water lines, drainage lines, catch basin;, and ancillary improvements The City's share of these costs will be paid within thirty (30) days after these improvements arad these 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 o:E tY'ie studies. LAR Properties, L.C. will complete these improvement~~ by May 1, 2009. Section 6: LAR Propertiesa, L,. C. will enter into construction agreements to perform the improvements delineated, in this agreement. If LAR Properties, L.C. uses its own resources or a related constructi~~n company, it must provide information and documentation that the costs thereof are equal to or less than if it was bid out, a:s to avoid the undue loading of costs, collusion or fraud as p:rohi_bited by Section 212.074 Local Government Code. Also, all plans and specifications for z.lar_developer participation contract 3 public improvements will need to ]~e approved by the City as is required of other developers. The City has the option to c~~nst:ruct the public improvements, with LAR Properties, L.C. reimbursing the City for its share of the costs. Section 7: So long as LAR PY~operties, L. C. is in substantial compliance with the t:imet.able in this Agreement, the City and LAR Properties, L.C. agrEse that the City will waive up to $25,000 in building permit fee:, water tap fees, and sewer tap fees. Section 8. If LAR Properties, L.C., or affiliated companies, do not build (construction completed and certificate of occupancy issued) at least sixty-six (66) single family residences on the tract in Exhibit "P." by December 31, 2013, then LAR Properties, L.C. will repay the City as follows: Amount to be repaid equals the number of homes not built divided by 66 times the amount of moneys that the City has paid for the improvements and the amount of monies that the City has ~Naived 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 forsaid subdivision and this agreement provides a total incentive of less than 300. LAR Properties, L.C. estimates the total contract price for the z.lar_developer participation contract 4 proposed public improvements to be: over $750,000. Notwithstanding, the City's total reimbursement shall not exceed $200,000 in cash reimbursements. The City will waive up to $25,000 in building permit fees, water tap fees, and sewer tap fees. Section 10: All of LAR Properties, L.C.'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 a:~ provided for by Section 212.074 (b) Local Government Code. Section 11 This agreemeni~ will be construed in accordance with the laws of Texas, a~; well as the Ordinances of the City of Port Arthur. Section 12: The venue of ~~11 causes of action will be in Jefferson County, Texas. Section 13: The homes to ]oe built shall be sold to homebuyers without regard to race, religion or national origin., and LAR Properties, L.C. 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 14: 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 LAR Properties, L.C. z.lar_developer participation contract s Section 15: 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 7'7641.-1089 TO: LAR PROPERTIES, L.C. ATTN: J. MICHAEL REBES'~CHER P. O. Box 2024 Friendswood, TX 7'7546-9024 Section 16: The City maker na representation as to the marketability of said tracts or the suitability of them as single family residences. LAR Properties, L.C. has relied on its own feasibility studies thereon a.nd its own inspection as to the condition and existence of thc~ utilities on or adjacent to the property. Section 17: If the City does not comply with the terms of this Agreement, then LAR Prope:rtie:s, L.C. may terminate this agreement with thirty (30) days w:ritt.en notice. If LAR Properties, L.C. does not comply ~Nith~ the terms of this Agreement, then the City may term:inat.e this agreement with thirty (30) days written notice. Section 18: The City shal:L nat give any other incentives on this property, either directly or indirectly and any other incentives are rescinded. z.lar_developer participation contract 6 Section 19: LAR Propertie:~, L.C. shall provide opportunities to Port Arthur contractors to bid on or to provide quotes for the building of the improvements and the homes. SIGNED AND AGREED TO on this the day of , 2008. LAR PROPERTIES, L.C. By: (Printed Name) ACKNOWLEDGMENT STATE OF TEXAS ~ COUNTY OF § BEFORE ME, the undersigned Nc~taY•y Public, on this day, personally appeared k~aowri to me to be the person whose name is described in the fo:regc>ing instrument, and acknowledged to me that he/she ex~~cut:ed the same as the act and deed of LAR Properties, L.C., for the' purposes and considerations therein expressed, anti the capacities therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the day of 2008. Notary Public, State of Texas z.lar_developer participation contract SIGNED AND AGREED TO on this the day of , 2008. CITY OF PORT ARTHUR By: STEPHEN I?ITZGIBBONS, 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 tY:~at he/she executed the same as the act and deed of the City o:E Pc>rt 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 z.lar_developer participation contract s EXHIBIT "A" to the Agreement ~a N J\•~ , , ,`s 1• ~ .r S --~r _ - 1 wlp ISS Rttttp ! i Ots 5 8 ~i iM'13 1. 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