R2004-171 10-11-04 RESOLUTION NO. R2004-171
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE DEVELOPMENT AUTHORITY OF
PEARLAND TO MAKE REIMBURSEMENT PAYMENTS AS
RECOMMENDED BY REINVESTMENT ZONE NUMBER TWO, CITY OF
PEARLAND, TEXAS.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the Development Authority of Pearland is hereby authorized to
make reimbursement payments in accordance with the Master Developer Reimbursement
Agreement, dated September 22, 1999, by and between the City, Reinvestment Zone
Number Two, City of Pearland, Texas and Shadow Creek Ranch Development Company,
L.P., and the approved Auditor's Report on Developer Reimbursement No. 1, attached
hereto as Exhibit "A".
PASSED, APPROVED and ADOPTED this the 11th day of October ,
A.D., 2004.
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
TOM REID
MAYOR
11 Greenway Plaza, Suite 1515
Houston, TX 77046
(713) 621-1515
Fax: (713) 621-1570
Ifil
Null,Lairson
C[RTIRED PIJBUC ACCOUNTANTS
PROFESSIONAL CORI~RATION
EXHIBIT
One Sugar Creek Blvd., Suite 920
Sugar Land, TX 77478
(281) 242-8600
Fax: (281) 242-7333
September 23, 2004
Reinvestment Zone No. Two,
City of Pearland, Texas
Attn: Chairman, Board of Directors
C/o- City of Pearland, Texas
3519 Pearland Drive
Pearland, Texas 77581
Re: Independent Accountants' Report - Completion of TIRZ improvements:
Dear Mr. Chairman and Members of the Board:
As the independent accountant for Reinvestment Zone No. Two, City of Pearland, Texas
(the "Zone"), we have reviewed the completed documentation submitted by Shadow Creek Ranch
Development Company, L.P. (the "Master Developer") relating to the construction of the TIRZ
Improvements described by that Letter Financing Agreements noted on Schedule A (the "Letter
Financing Agreements"). By the Letter Financing Agreement, the Master Developer agreed to
pre-finance the design and construction of the TIRZ improvements to be reimbursed in accordance
with the Reimbursement Agreement between the City of Pearland (the "City"), the Zone and the
Master Developer dated September 22, 1999 (the "Reimbursement Agreement").
Based upon our review of the payments made and of the certification of the Zone's
Engineer, I conclude that the construction of the TIRZ Improvements was conducted and have
been completed in compliance with the Reimbursement Agreement and the document entitled
"TIRZ Implementation and Reimbursement Process" and are in order for reimbursement upon
availability of funds. We therefore recommend that the Zone reimburse the Master Developer the
amounts indicated on Schedule A for the funds advanced to the Zone for the design and
construction of the TIRZ Improvements, which is within the TIRZ budget (adjusted for inflation)
established in the Zone's Project Plan and Reinvestment Zone Financing Plan for the TIRZ
improvements.
In accordance with the Zone's Project Plan and Reinvestment Zone Financing Plan and
the Developer Agreement between the City and the Master Developer dated September 22, 1999,
"developer interest" on this advance shall be calculated at 8 percent per annum for up to five
years on the Creation costs and five years from date of completion of construction of the TI1LZ
improvements. Based upon this rate of interest, interest due as of the date of the letter is indicated
on Schedule A with an additional per diem rate of interest as indicated.
Very truly yours,
SCHEDULE A
TAX INCREMENT REINVESTMENT ZONE NO. 2
CITY OF PEARLAND~ TEXAS
RECAPITULATION OF AMOUNTS DUE TO
SHADOW CREEK RANCH DEVELOPMENT COMPANY~ L.P.
As of September 30~ 2004
Letter Finance Agreement LFA LFA Actual
(LFA) Date Amount Cost
Creation Costs 06/19/00 $ 900,000 $ 882,434
LFA 99-11-001 (Entry) 11/08/99 919,150 * 919,150
LFA 01-001 (V1P1A) 02/21/00 6,524,629 4,160,628
LFA 00-10-002 (V1P1B) 10/09/00 10,318,290 8,435,775
LFA 01-04-001 (V1P1B) 08/23/01 1,967,061 630,249
Interest Total
Per Diem
Interest
352,499 $ 1,234,933
284,813 1,203,963
1,009,664 5,170,292
1,650,876 10,086,652
117,755 748,004
$ 20,629,130 $ 15,028,236 $ 3,415,607 $ 18,443,843
$ 36.48
201.46
911.92
1,848.94
138.14
* Actual costs ex6eeded the amount of the LFA. Per the governing agreements, reimbursement is limited to the amount of the LFA
r _
DRAFT
NUDSON
associates
Piannirg,Design&DeveicpmeM Services
8588 Katy Freeway
Suite 441
Houston,TX 77024
TEL(713)463-8200
FAX(713)463-8011
www.knudsonservices.com
October 6, 2004
City of Pearland, Texas
City Council
3519 Liberty Drive
Pearland, Texas 77581
Dear Honorable Mayor:
On October 5, 2004,the Board of Directors for Tax Increment Reinvestment Zone Number Two,
City of Pearland, Texas met in a properly posted meeting, which was open to the public.
At this meeting,the Board of Directors, in accordance with the Master Developer
Reimbursement Agreement, dated September 22, 1999,by and between the City of Pearland,
Texas,Reinvestment Zone Number Two, City of Pearland, Texas and Shadow Creek Ranch
Development Company, L.P., approved the Auditors' Report on Developer Reimbursement No.
1 and recommended to the City that it reimburse the Developer for the project costs therein.
Please accept this letter as notice of the Board's action and recommendation.
Sincerely,
Sue Darcy
Sue Darcy
Principal
cc: Darrin Coker, City of Pearland
Lynne Humphries, Allen Boone Humphries LLP
Trey Lary, Allen Boone Humphries LLP
Rick Witte, Andrews &Kurth
enclosure