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MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark Sokolow, City Attorney ~{'-,
Date: June 24, 2008 I ~I ~~~~
Subject: P. O. No. 5887; Council Meeting July 1, 2008
Attached is P. O. No. 5887 authorizing the execution of a new
Developer Participation Contract with LAR Properties, L. C.
(Requested by the City Manager).
MTS:ts
Attachment
co: J. Michael Rebescher
LAR PROPERTIES, L. C.
P. O. Box 2024
Friendswood, TX 77546-9024
z.po5887_memo
P. O. No. 5887
6/19/08 is
NO.
AN ORDINANCE AIITHORIZING THE EBECIITION OF A
NEW DEVELOPER PARTICIPATION CONTRACT WITH LAR'
PROPERTIES, L.C. (REQIIESTED BY THE CITY
MANAGER)
WHEREAS, per Ordinance No. 08-38, the City of Port Arthur and
LAR Properties, L.C. entered into a Developer Participation
Contract; and
WHEREAS, LAR Properties, L. C. originally had a commencement
date of May 19, 2008 and
WHEREAS, per. Ordinance No. OS-45, LAR Properties, L. C. was
granted. an extension as to the commencement date to August 1, 2008;
upon the execution of an Amendment to the Agreement; and
WHEREAS, it is deemed in the public interest to authorize a
new Developer Participation Contract with LAR Properties, L.C.
NOW THEREFORE, BE IT ORDAINED BY THS'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 grant a new Developer Participation Contract with LAR
Properties, L.C., in substantially the same form as attached
hereto as Exhibit "A".
Section 3. That Ordinance No. 08-38 and Ordinance No.
08'-45 are herein repealed and the Agreements thereon are null and
void.
z.po5887
Section 4. That LAR Properties, L.C. will sign this
Ordinance as agreeing to the terms thereof.
Section 5. 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 6. That a copy of this 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:
AYES: Mayor
City Council.
NOES:
MAYOR
ATTEST:
CITY SECRETARY
APPROVED AS TO FORM:
G~i "
CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
CITY MANAGER
z.po5887
PROVED AS TO THE AVAILABILITY OF FIINDS:
~~ ~~~~~
DIRECTOR OF FINANCE
303-1603-591.89-00
CIP816
AGREED TO:
LAR PROPERTIES, L.C.
BY:
DATE:
z.po5887
EXHIBIT "A"
STATE OF TEXAS ~
COUNTY OF JEFFERSON §
DEVELOPER PARTICIPATION CONTRACT
WITH LAR PROPERTIES, L.C.
WHEREAS, the City of Port Arthur 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 to 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_2008
i
Exhibit "A" by LAR Properties, L.C. with a deadline of December
31, 2013.
NOW THEREFORE, the City of Port Arthur and LAR Properties,
L.C. agree to the following,:
Section 1: The facts and opinions in the preamble are
true and correct.
Section 2: Timetable for purchase. of Lots for
development:
(a) LAR Properties, L.C., or its affiliated companies,
will provide documentation that it has purchased the
land as described in Exhibit "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 October 1, 2008, 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:
LAR Properties, L.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 $1,000,000. 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 Properties, L.C. will have liability
z.lar_developer participation contract_2008 ~
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insurance of $1,000,000, and hold the City harmless from its
construction activities.
Section 5: The City of Port Arthur will pay for ~'~-~ 200
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 $1,000,000 on the following:
• Engineering & Final Design
• Environmental and Geo Technical Studies
• Public roads, sewer lines, water lines, drainage
lines, catch basins, and ancillary improvements
The City's share of these costs will be paid within thirty
(30) days after these improvements and 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 of the studies . LAR Properties,
L.C. will complete these improvements by July 1, 2009.
Section 6: LAR Properties, L.C. will enter into
construction agreements to perform the improvements delineated
in this agreement. Lf LAR Properties, L.C. 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.lar_developer participation contzact_2008
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 LAR Properties, L.C. reimbursing the City for
its share of the costs.
Section 7: So long as LAR Properties, L. C. is in
substantial compliance with the timetable in this Agreement, the
City and LAR Properties, L.C. agree that the City will waive
building permit fees, water tap fees, and sewer tap fees.
Section 8. If LAR Properties, L.C., or"affiliated
companies, do not build (construction completed and certificate
d
of occupancy issued) at least sixty-six (66) single family
residences on the tract in Exhibit "A" 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 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 subdivision and this
agreement provides a total cash incentive of less than 30°s. LAR
Properties, L.C. estimates the total contract price for the
z.laY developer participation contract_2008
a
proposed public improvements to be over $1,000,000'.
Notwithstanding, the City's total reimbursement shall not exceed
$200,000 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: 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 as provided for by Section
212.074 (b) Local Government Code.
Section 11: This agreement will be construed in
accordance with the laws of Texas, as well as the Ordinances of
the City of Port Arthur.
Section 12: The venue of all causes of action will be in
Jefferson County, Texas.
Section 13: The homes to be 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
z.lar_developer participation contract_2008
s
the City Manager, so long as the delays are not caused by the
acts or omissions of LAR Properties, L.C.
Section 15: Notice to the parties shall be as follows:
T0: CITY OF PORT ARTHUR
ATTN: Stephen Fitzgibbons
City Manager
444 Fourth Street
P. O. Box 1089
Port Arthur, TX 77641-1089
TO: LAR PROPERTIES, L.C.
ATTN: J. MICHAEL REBESCHER
P. O. Box 2024
Friendswood, TX 77546-9024
Phone: (281) 482-2700 (ext. 108)
Section 16: The City makes no 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 and its own inspection as to
the condition and existence of the utilities on or adjacent to
the property.
Section 17: If the City does not comply with the terms
of this Agreement, then LAR Properties, L.C. may terminate this
agreement with thirty (30) days written notice. If LAR
Properties, L.C. does not comply with the terms of this
Agreement, then the City may terminate this agreement with
thirty (30) days written notice.
z.lar_developer participation contract_2o08
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Section 18: The City shall not give any other incentives
on this property, either directly or indirectly and any other
incentives are rescinded.
Section 19: LAR Properties, 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 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 LAR Properties, L.C.,
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.
z-.lar developer participation cont ract_2008
Notary Public, State of Texas
v
SIGNED AND AGREED TO on this the day of
2008.
CITY OF PORT ARTHUR
By:
STEPHEN FITZGIBBONS, CITY MANAGER
ACKNOWLEDGMENT
STATE OF TEXAS ~
5
COIINTY 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 DEVELOPER PARTICIPATION CONTRACT
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