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HomeMy WebLinkAboutPO 5745: ACRES LTDinteroffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney Date: April 20, 2007 Subject: P. O. No. 5745; Council Meeting April 24, 2007 Attached is P. O. No. 57.45 authorizing the City Manager to enter into a Developer Participation Contract with 5.156 Acres, Ltd. MTS:ts Attachment CC: 5.156 ACRES, LTD. c/o Marsha Normand Manager 2579 Liberty St. Beaumont, TX 77702 J. Hoke Peacock ORGAIN, BELL & TUCKER, LLP 470 Orleans Beaumont, TX 77701 z.po5745.memo ORDINANCE NO. P. O. No. 5745 04/20/07 ts AN ORDINANCE AUTHORIZING THE CITY MANAGER TO ENTER INTO A DEVELOPER PARTICIPATION CONTRACT WITH 5.156 ACRES, LTD. WHEREAS, the City of Port Arthur and 5.156 Acres, Ltd. desire into a Developer Participation Contract, pursuant to 212.071 to 212.074 of the Local Government Code; and to enter Sections WHEREAS, 5.156 Acres, Ltd.. plans to develop an approximately 5.162 acre tract as to provide up to thirty (30) single lots whereon single family residences can be built by December 31, WHEREAS, water lines, facilities, which will be constructed by December 31, 2008; and WHEREAS, once these improvements are construct to City specifications, they will be conveyed to the City as public improvements; and WHEREAS, 5.156 Acres, Ltd. Arthur participate in the cost of some of these improvements as develop this property. 2010; and the improvements to be constructed will be roads, sanitary sewer lines, street lights, and drainage is requesting that the City of Port to NOW, OF PORT ARTHUR, Section 1. correct. THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY TEXAS: That the facts in the preamble are true and z.po5745 Section 2. enter Ltd., Section 3. That a copy of the caption of this spread upon the Minutes of the City Council. RF~AD, ADOPTED and APPROVED this the __ day of That the City Manager is herein authorized to into a Developer Participation Contract with 5.156 Acres, in substantially the same form as attached hereto as Exhibit with the City's participation not to exceed $66,000. Ordinance be of the Mayor A.D., 2007, at a Council Meeting of the City Council City of Port Arthur, Texas, by the following vote: AYES: ; Councilmembers ; ; NOES: ATTEST: CITY SECRETARY APPROVED AS TO FOPS: CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER MAYOR z.po5745 EXHIBIT "A" to the Ordinance WHEREAS, desire to enter into pursuant to Sections V.T.C.A. as it and WHEREAS, DEVELOPER PARTICIPATION CONTP~CT the City of Port Arthur and 5.156 Acres, Ltd. a Developer Participation Contract, 212.071 to 212.074 Local Government Code, pertains to property described in Exhibit "A"; 5.156 Acres, Ltd. is a Texas Limited Partnership, KBM Investments Management, LLC is its general partner and Marsha Normand is the Manager of KBM Investments Management, LLC; and WHEREAS, 5.156 Acres, Ltd. plans to develop the approximately 5.162 acre tract located in Reserve A, Stonegate Manor, Section Four, as described in Exhibit "A", so as to provide a road and utility infrastructure wherein up to thirty (30) single family residences can be constructed in a subdivision called WGN Estates; and 5.156 Acres, Ltd. is planning the site development WHEREAS, thereof; and WHERE~S, the improvements to be constructed by 5.156 Acres, Ltd. will be a road, water lines, sanitary sewer lines, street lights and drainage facilities; and WHEP~AS, once these improvements are constructed to City specifications and accepted by the City, they will be deeded or dedicated to the City as public improvements; and ~z.wgm_developer participation contract WHEREAS, 5.156 Acres, Ltd. is requesting that the City of Port Arthur participate in the improvements as to develop this property, at an incentive not to exceed $66,000. NOW THEREFORE, the City of Port Arthur and 5.156 Acres, Ltd. agree to the following: Section One: Section Two: The facts and opinions in the preamble are true and correct. 5.156 Acres, Ltd. will proceed to plat the property as described in Exhibit "A" for up to thirty (30) single family lots in accordance with State law and City Ordinances. Section Three: 5.156 Acres, Ltd. will enter into a construction contract to construct the public water lines, public sanitary sewer lines, street lights, public storm sewers and drainage facilities, public road and other public improvements, all of which will be designed tc City specifications. 5.156 Acres, Ltd. will take such precautions and provide such information to the City that there is no undue loading of cost, collusion or fraud as prohibited by Section 212.074 Local Government Code. If 5.156 Acres, Ltd. uses its own resources or a related construction company, they must show that the construction costs will be equal or less than if it was bid out. 5.156 Acres, Ltd. already has a bid tabulation as to a portion of this work, as described in Exhibit "B", and plans to utilize ICON Builders, who has bid $215,548.75 for said work. Section Four: In accordance with Section 212.073 Local Government Code, 5.156 Acres, Ltd. will execute or obtain a performance bond for the construction of the improvements to ensure completion of the project. The bond must be executed by a corporate surety in accordance with Chapter 2253 of the Government Code. 2z.wgmdeveloper participation contract Section Five: 5.156 Acres, Ltd. will present the construction contracts and performance bonds to the City prior to commencing construction. Once the project as to the road, water line, sewer lines, drainage facilities, street lights, and other public improvements are substantially completed in accordance with city specifications and are accepted by the City, which must be substantially completed by December 31, 2008, the City will pay thirty percent (30%) of the project costs, up to $66,000. The construction contracts will provide for a one (1) year warranty on the improvements, which will be assigned to the City. Section Six The City will receive the road and ancillary utilities by public dedication via a recorded plat and by recorded easements Section Seven: 5.156 Acres, Ltd. will sign liens as are approved by the City Attorney. The City further agrees to sign such subordination agreements are as necessary and reasonable for third party financing, such to be approved as to form by the City Attorney. The City will release the liens as to the 5.156 Acres, Ltd. project as each lot is being sold for construction of a house. Section Eight: Ail of 5.156 Acres, Ltd.'s books and other records shall be available for inspection by the City, all as provided for by Section 212.074(b) Local Government Code. Section Nine: Section Ten: This agreement will be construed in accordance with the laws of Texas, as well as the Ordinances of the City. The venue of all causes of action will be in Jefferson County, Texas. Section Eleven: The lots that will be sold to developers or individuals for home construction and the residences shall be sold without regard to race, religion, or national origin, and 5.156 Acres, ]Ltd. will comply with the Fair Housing laws, as delineated under Chapter 46 of the Code of Ordinances of the City of ~z.wgm_developer participation contract Port Arthur and as delineated by federal and state laws. Section Twelve: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 77641-1089 TO: 5.156 ACRES, LTD. c/o Marsha Normand 2579 Liberty St. Beaumont, Texas 77702 Section Thirteen: The City makes no representations as to the marketability of said tracts or the suitability of them as single family residences. Section Fourteen: At the discretion of the City, any dispute as to this matter can first be referred to mediation. Section Fifteen: The effective date of this Agreement shall be May 1, 2007. Section Sixteen: If either party does not comply with terms hereof, then either party may terminate this agreement with thirty (30) days written notice. Section Seventeen: Notwithstanding, Section Sixteen, 5.156 Acres, Ltd. will reimburse the City the following if they, or their assignees, do not build thirty (30) residences by December 31, 2010, in accordance with the following formula: # of residences not built divided by 30 equals "X". "X" times the amounts of incentive paid by the City equals amount to be reimbursed to the City. H~pothetical: If 5.156 Acres, Ltd. only builds ten (10) residences by December 31, 2010, then KBMDT Venture will reimburse the City $44,000 on 4z.wgm developer participation contract January 1, 2011, assuming the City paid an incentive of $66,000. 20/30 h X $66,000 = $44,000 Section Eighteen: If 5.156 Acres, Ltd. does not promptly reimburse the City of Port Arthur, then 5.156 Acres, Ltd. will pay the City the arrearage plus any and all attorney fees, court costs, pretrial and post- trial interest, and the City also has the option of foreclosing on the liens. Section Nineteen: There will be no waiver of building permit fees, water tap fees, or sewer tap fees. SIGNED AND AGP~ED TO on this 'the day of April, 2007. 5.156 ACRES, LTD. BY: KBM INVESTMENTS MANAGEMENT, LLC BY: Marsha Normand, Manager SIGNED AND AGREED TO on this the day of , 2007. CITY OF PORT ARTHUR WITNESSED BY: BY: Stephen Fitzgibbons City Manager 5z.wgm_developer participation contract ACKNOWLEDGEMENT STATE OF TEXAS COUNTY OF JEFFERSON BEFORE ME, the undersigned Notary Public, on this day, personally appeared Marsha Normand, 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 5.156 Acres, Ltd. for the purposes and consideration therein expressed, and the capacities therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, on this the day of April, 2007. Notary Public, State of Texas 6z.wgm_developer participation contract 6 ACKNOWLEDGEMENT 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. of GIVEN UNDER MY HAND AND SEAL OF OFFICE, , 2007. on this the day Notary Public, State of Texas 7z.wgm_developer participation contract EXHIBIT "A" to the Contract / / / I I o© o EXHIBIT "B" to the Contract ~o ~ o 8 o ~ o o ~ ¢ 8 o ~ o ~ o 8 ~i o o 8 ~ I 80 9coo0=ooo¢! ~8 o'b~bbb'bb