R2005-0135 08-29-05
RESOLUTION NO. R2005-135
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.2, attached
hereto as Exhibit "A".
PASSED, APPROVED and ADOPTED this the 29th day of Auqust
A.D., 2005.
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TOM REID -
MAYOR
ATTEST:
APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
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3
II Greenway Plaza, Suite 1515
Houston, TX 77046
(713) 621-1515
Fax: (713) 621-1570
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Null. Lairson
One Sugar Creek Blvd., Suite 920
Sugar Land, TX 77478
(281) 242-8600
Fax: (281) 242-7333
CERTIfiED I'UBI.IC i\CCOLl:\T/\\iTS
I'ROIL5SI0i\1\/ lO/{J'( JK\II( IN
August 29, 2005
Reinvestment Zone No. Two,
City of Pearl and, Texas
Attn: Chairman, Board of Directors
C/o- City of Pearl and, Texas
3519 Pearl and Drive
Pearland, Texas 77581
Re: Independent Accountants' Report - Completion ofTIRZ 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 TIRZ
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.
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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 AUl!ust 29, 2005
Letter Finance Agreement LFA LFA Actual Per Dicm
(LFA) Date Amount Cost Intercst . Total Interest
LFA 03-10-004 (Kingsley Dr. PH 3) 10/07/03 $ 3,529,173 $ 2,429,087 $ 257,838 $ 2,686,925 $ 532.40
LFA 04-07-006 (Traffic Signal-
Shadow Creek PKWY /Kingsley Dr.) 07113/04 287,788 263,470 10,936 274,406 57.75
LF A 04-07-007 (Parks and Trails -
Grading and Infrastucture) 07113/04 1,007,256 777,066 45,664 822,730 170.32
$ 4,824,217 $ 3,469,623 $ 314,438 $ 3,784,061
· Interest computed at 8% through December 6, 2005.