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Home My WebLink AboutPO5575: D.H.S. DEVELOPER CONT. P. O. No. 5575 12/02/05 ts OBD INANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A DEVELOPER PARTICIPATION CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND D.H.S. CAMELLIA ESTATES, L.L.P. WHEREAS, the City desires to enter into a Developer Participation Contract with D.H.S. Camellia Estates, L.L.P.; and, WHEREAS, D.H.S. Camellia Estates, L.L.P. plans to develop an approximately 22 acre subdivision west of West Port Arthur Road; and WHEP~AS, the Developer Participation Contract between D.H.S. Camellia Estates, L.L.P. and the City of Port Arthur is attached hereto in substantially the same form as delineated in Exhibit "A". NOW, THEREFORE, BE IT ORDAX~]~D BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: Section 1. That the facts in the preamble are true and correct. Section 2. That the agreement attached in substantially the same form as Exhibit "A" is contingent on the availability of funding and a budget'amendment. Section 3. Once a budget amendment is approved which provides funding for the incentives, the City Manager is authorized to enter into the Developer Participation Contract with D.H.S. z.p05575 Camellia Estates, L.L.P., in substantially the same form as attached hereto as Exhibit "A". Section 4. That a copy of the caption of this Ordinance be spread upon the Minutes of the City Council. READ, ADOPTED and APPROVED this the __ day of A.D., 2005, at a Council Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor ; Councilmembers NOES: ATTEST: MAYOR CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER AGREED TO~ D.H.S. CAMELLIA ESTATES, L.L.P. BY: z.po5575 EXHIBIT "A" TO THE RESOLUTION STATE OF TEXAS ~ COUNTY OF JEFFERSON § DEVELOPER PARTICIPATION CONTRACT WHEREAS, the City of Port Arthur and D.H.S. Camellia Estates, L.L.C. (hereinafter denoted as D.H.S.) desire to enter into a Developer Participation Contract pursuant to Sections 212.071 to 212.074 Local Government Code, V.T.C.A.; and WHEREAS, D.H.S. Camellia Estates, L.L.C. (hereinafter denoted as D.H.S.) has an agreement to purchase the approximately twenty-two (22) acres described in Exhibit "A" as to facilitate the deyelopment of a subdivision; and, WHEREAS, the improvements to be constructed by D.H.S. will be the completion of a road or roads, water lines, sewer lines, lift station, storm sewer lines, and other improvements described in Exhibit "B"; and WHEP~AS, 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, D.H.S. is requesting that the City of Port Arthur participate in the cost of some of these improvements as to develop these lots -so that at least eighty (80) single-family residential units will be built in the area described in Exhibit "A" by D.H.S. or its assignees by December 1, z.dh~ developer participation contract.draft 1 1 NOW THEREFORE, the City of Port Arthur and D.H.S. Camellia Estates, L.L.C. (hereinafter denoted as D.H.S.) agree to the following: Section 1: The facts and opinions in the preamble are true and correct. Section 2: D.H.S. will purchase the land described in Exhibit "A" by February 1, 2006. 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 D.H.S. Section 3: The commencement date for the timetable for D.H.S. improvements shall be on or before July 1, 2006. Section 4: If required by Section 212.073 Local Government Code, D.H.S. will obtain a performance bond for the construction of the improvements to ensure completion of the project. If required by Section 212.073 Local Government Code, 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. D.H.S. 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 30% of the costs on the improvements as delineated in Exhibit "B", with the total reimbursement by the City not to exceed $ The City's share of these costs will be paid Within thirty (30) days after these improvements, these studies, and after completion of the roads, water lines, sewer lines, and other public improvements described in Exhibit "B" by D.H.S. in accordance with the City's Code of Ordinances. The City will receive a copy of all of the studies. D.H.S. will complete these improvements by December 1, 2006. z.dhs_developer participation contract.draft 1 2 Section 6: D.H.S. will enter into construction agreements to perform the improvements delineated in this agreement. If D.H.S. 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 public improvements will need to be approved by the City as is required of other developers. Section 7: If D.H.S. or affiliated companies, do not build (construction completed and certificate of occupancy issued) at least eighty (80} single family residences on the tract described in Exhibit "A" by December 1, , then D.H.S. will repay the City as follows: ~_mount to be repaid equals the number of homes not built divided by 80 times the amount of moneys that the City has paid for improvements and studies. Section 8: Pursuant to Section 212.072 Local Government Code, the total 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" for ~aid subdivision. The parties estimate the total contract price for the proposed public improvements for the development of the 80 lot subdivision to be $ Notwithstanding, the City's total reimbursement shall not exceed $ The City shall also make reimbursement for the oversizing of the lift station and 2nd force main in an amount not to exceed $__ as to anticipate other future developments east of West Port Arthur Road Spur 93. The details of the oversizing and projected costs is delineated in Exhibit "C". Section 9: Ail of D.H.S.'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 z.dhs ~eveloper participation contract.draft 1 3 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 homes to be built shall be sold to homebuyers without regard to race, religion or national origin, and D.H.S. 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. Subject to the availability of funds, the City may provide down payment assistance to qualified buyers in accordance with HUD guidelines and as determined in the discretion of the City and HUD. Section 13: Reasonable delays (not to exceed thirty(30) days} in the performance of this agreement ~ay be approved by the City Manager, so long as the delays are not caused by the acts or omissions of D.H.S. Section 14: Notice to the parties shall be as follows: TO: CITY OF PORTARTHUR AT~: Stephen Fitzgibbons City Manager 444 Fourth Street P. O. Box 1089 Port Arthur, TX 77641-1089 TO: D.H.S. CAMELLIA ESTATES, L.L.C. ATTN: Section 15: The City makes no representation as to the marketability of said tracts or the suitability of them as single family residences. D.H.S. Camellia Estates, L.L.C. has relied on its own feasibility studies thereon and its own inspection as to the z.dhs_developer participation contract.draft 1 4 condition and existence of the utilities on or adjacent to the property. Section 16. (a) If the City does not comply with the terms of this Agreement, then D.H.S. Camellia Estates, L.L.C. may terminate this agreement with thirty (30) days written notice. (b) If D.H.S. Camellia Estates, L.L.C. does not comply with the terms of this Agreement, then the City may terminate his agreement with thirty (30) days written notice. SIGNED AND AGREED TO on this the __ day of , 2006. D.H.S. CAMELLIA ESTATES, L.L.C. By: (Printed Name) ACKNOWLE~MENT STATE OF TEXAS COUNTY OF JEFFERSON 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 D.H.S. Camellia Estates, L.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 , 2006. Notary Public, State of Texas z.dhs developer participation contract.draft 1 5 SIGNED 2~ND AG~ED TO on this the day of 2006. CITY OF PORT ARTHUR By: STEPHEN FITZGIBBONS CITY MANAGER AC~i~OWLEDGMENT 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 H~ND AND SEAL OF OFFICE, this the day of , 2006. Notary Public, State of Texas z.dh$ developer participation contract.draft 1 6 EXHIBIT "A" TO THE AGREEMENT (NEEDS TO BE INSERTED AND PREPARED BY THE DEVELOPER) EXHIBIT "B" TO THE AGREEMENT (NEEDS TO BE INSERTED AND PREPARED BY THE DEVELOPER) EXHIBIT "C" TO THE AGREEMENT (NEEDS TO BE INSERTED AND PREPARED BY THE DEVELOPER)