HomeMy WebLinkAboutPO 6236: DEVELOPER PARTICIPATION CONTRACT WITH H & P ENGINEERING & BUILDERS, INC. P. O. No.6236
06/04/12 ht
ORDINANCE NO.
AN ORDINANCE AS IT PERTAINS TO A DEVELOPER
PARTICIPATION CONTRACT WITH H & P ENGINEERING
& BUILDERS, INC.
WHEREAS, pursuant to Ordinance 05 -37, the City shall enter
into a Developer Participation Contract with H & P Engineering &
Builders, Inc.; and
WHEREAS, H & P Engineering & Builders is the owner of lots,
as denoted in Exhibit "A ", and
WHEREAS, thirty -three (33) single family residential units
will be built with a deadline of December 31, 2018; and
WHEREAS, the road or roads (i.e., Lake Arthur Drive & Lakeland
Drive), water lines, sanitary sewer lines, storm sewers lines,
ground raising, catch basins, other storm sewer construction,
street lighting and electrical, underground utility extension,
landscaping, paving, sidewalk to access pond, pond and pond
landscaping and other ancillary improvements were to commence
construction on or before January 1, 2013; and
WHEREAS, the City's participation should not exceed the amount
of $229,200.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
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CITY OF PORT ARTHUR:
Section 1. That the facts and opinions in the preamble are
true and correct.
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Section 2. That the City Manager is authorized to execute ,
and agree to the project in the Developer Participation Contract
with H & P Engineering & Builders, Inc., in substantially the same
form as attached hereto as Exhibit "B ".
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., 2012, at a Council Meeting of the City Council of the City of
Port Arthur, Texas, by the following vote:
AYES: Mayor ,
Councilmembers: ,
NOES: .
DELORIS "BOBBIE" PRINCE, MAYOR
ATTEST:
SHERRI BELLARD, CITY SECRETARY
APPROVED AS TO FORM:
7P7;--s' / 0 VALECIA . T EN, CITY ATTORNEY
APPROVED FOR ADMINISTRATION:
JOHN A. COMEAUX, P.E, ACTING CITY MANAGER
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Exhibit"B"
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STATE OF TEXAS §
COUNTY OF JEFFERSON §
DEVELOPER PARTICIPATION CONTRACT
WITH H & P Engineering & Builders, Inc.
WHEREAS, the City of Port Arthur and H & P Engineering &
Builders, Inc. desire to enter into Developer Participation
Contract pursuant to Chapter 212, Subchapter C, Sections 212.071
to 212.074 of the Texas Local Government Code, V.T.C.A.; and
WHEREAS, H & P Engineering & Builders, Inc. is the owner of
lots, as denoted in Exhibit "A" and plans to construct thirty -
three (33) single family residences; and
WHEREAS, the improvements to be constructed by H & P
Engineering & Builders, Inc. will be the completion of a road or
roads, water lines, sanitary sewer lines, storm sewer lines,
ground raising, catch basins, other storm sewer construction,
street lighting and electrical, underground utility extensions,
landscaping, paving, sidewalk to access pond, pond and pond
landscaping and other ancillary improvements 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, H & P Engineering & Builders, Inc. is requesting
that the City of Port Arthur participate in the cost of these
Developer Participation Contract_Hasan Shomalzadeh
improvements as to develop these lots so that at least thirty -
three (33) single family residential units will be built in the
area denoted as Exhibit "A" by H & P Engineering & Builders,
Inc. with a deadline of December 31, 2018.
NOW THEREFORE, the City of Port Arthur and H & P
Engineering & Builders, Inc. agree to the following:
Section 1: The facts and opinions in the preamble are
true and correct.
Section 2: On or before January 1, 2013, 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 3: H & P Engineering & Builders, Inc. 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 $800,000. 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. H & P Engineering & Builders, Inc. will have
liability insurance of $1,000,000, and hold the City harmless
from its construction activities.
Developer Participation Contract_Hasan Shomalzadeh
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Section 4: The City of Port Arthur will pay for 30% of
the following costs, with the total reimbursement by the City
not to exceed $229,200 out of a projected cost for the public
improvements of $764,000 on the following:
• Engineering & Final Design
• Environmental and Geo Technical Studies
• Road or roads, water lines, sanitary sewer lines,
storm sewer lines, ground raising, catch basins,
other storm sewer construction, street lighting
and electrical, underground utility extensions,
landscaping, paving, sidewalk to access pond,
pond and pond landscaping and other 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. H & P
Engineering & Builders, Inc. will complete these improvements by
December 31, 2018.
Section 5: H & P Engineering & Builders, Inc. will
enter into construction agreements to perform the improvements
delineated in this agreement. If H & P Engineering & Builders,
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
Developer Participation Contract_Hasan Shomalzadeh
3
the undue loading of costs, collusion or fraud as prohibited by
Section 212.074 Texas 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.
The City has the option to construct the public
improvements, with H & P Engineering & Builders, Inc. reimbursing
the City for its share of the costs.
Section 6: So long as H & P Engineering & Builders,
Inc. is in substantial compliance with the timetable in this
Agreement, the City and H & P Engineering & Builders, Inc. agree
that the City will waive building permit fees, water tap fees,
and sewer tap fees.
Section 7. If H & P Engineering & Builders, Inc., or
affiliated companies, does not build (construction completed and
certificate of occupancy issued) at least thirty -three (33)
single family residences on the tract in Exhibit "A" by December
31, 2018, then H & P Engineering & Builders, Inc. will repay the
City as follows:
Amount to be repaid equals the number of homes not
built divided by 33 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 8: Pursuant to Section 212.072 Local Government
Code, the total cash participation of the City shall not exceed
Developer Participation Contract_Hasan Shomalzadeh
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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%. H &
P Engineering & Builders, Inc. estimates the total contract
price for the proposed public improvements to be over $764,000.
Notwithstanding, the City's total reimbursement shall not exceed
$229,200 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 9. It is an essential term of this agreement
that the single family residences will be sold on the market and
not to any person or other organization that will take it off
the tax rolls.
Section 10: All of H & P Engineering & Builders, Inc'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.
Developer Participation Contract_Hasan Shomalzadeh
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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 H & P Engineering & Builders, 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 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
Y g g Y Y
acts or omissions of H & P Engineering & Builders, Inc.
Section 15: Notice to the parties shall be as follows:
TO: CITY OF PORT ARTHUR
ATTN: John Comeaux
Acting City Manager
444 Fourth Street
P. 0. Box 1089
Port Arthur, TX 77641 -1089
TO: H & P Engineering & Builders, Inc.
ATTN: Habash Shomalzadeh
4506 Kandywood Drive
Port Arthur, TX 77642
Phone: (409) -466 -6304
hpshomal @aol.com
Section 16: The City makes no representation as to the
marketability of said tracts or the suitability of them as
single family residences. H & P Engineering & Builders, Inc.
Developer Participation Contract Hasan Shomalzadeh
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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 H & P Engineering & Builders, Inc. may
terminate this agreement with thirty (30) days written notice.
If H & P Engineering & Builders, Inc. does not comply with the
terms of this Agreement, then the City may terminate this
agreement with thirty (30) days written notice.
Section 18. The Developer certifies that they have not
and will not knowingly employ an "undocumented worker" which
means an individual who, at the time of employment, is not
lawfully admitted for permanent residence to the United States
or authorized under law to be employed in that manner in the
United States. The Developer acknowledges that it has reviewed
Chapter 2264, Texas Government Code, and hereby affirmatively
agrees to repay the amount of any incentive with interest at the
rate of ten percent (l00) per annum, not later than the 120 day
after the date the City notifies the Developer of a violation.
The Developer acknowledges the City may bring a civil action as
to recover any amounts owed under this Chapter, and further
acknowledges that the City may recover court costs and
Developer Participation Contract_Hasan Shomalzadeh
reasonable attorney's fees incurred in bringing an action under
Section 2264.101, Texas Government Code.
Section 19: The City shall not give any other incentives
on this property, either directly or indirectly and any other
incentives are rescinded.
Section 20: H & P Engineering & Builders, Inc. shall
provide opportunities to Port Arthur contractors to bid on or to
provide quotes for the building of the improvements and the
homes.
Developer Participation Contract_Hasan Shomalzadeh
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SIGNED AND AGREED TO on this the day of
2012.
H & P Engineering & Builders, Inc.
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 H & P Engineering &
Builders, 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
, 2012.
Notary Public, State of Texas
Developer Participation Contract_Hasan Shomalzadeh
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SIGNED AND AGREED TO on this the day of
2012.
CITY OF PORT ARTHUR
By:
JOHN A. COMEAUX, P.E.,ACTING CITY MANAGER
ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF JEFFERSON §
BEFORE ME, the undersigned Notary Public, on this day,
personally appeared John A. Comeaux, P.E., Acting City Manager,
known to me to be the P erson 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 , 2012.
Notary Public, State of Texas
Developer Participation Contract_Hasan Shomalzadeh
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