R2006-096 06-26-06 RESOLUTION NO. R2006-96
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS AUTHORIZING THE CITY MANAGER OR
HIS DESIGNEE TO ENTER INTO AN INTERLOCAL
AGREEMENT WITH ALVIN COMMUNITY COLLEGE DISTRICT
("ACCD") TO OUTLINE THE OBLIGATIONS OF ACCD AND THE
CITY AS PARTICIPANTS IN REINVESTMENT ZONE NUMBER
TWO.
BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS:
Section 1. That certain interlocal agreement by and between the City of
Pearland and Alvin Community College District, a copy of which is attached as
Exhibit "A" and made a part hereof for all purposes, is hereby authorized and
approved.
Section 2. That the City Manager or his designee is hereby authorized
to execute and the City Secretary to attest the original of the attached agreement
for and on behalf of the City of Pearland, to outline the obligations of ACCD and
the City as participants in Reinvestment Zone No. 2.
PASSED, APPROVED and ADOPTED this the 26th day of June, A. D.,
2006.
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Tom Reid
Mayor
ATTEST:
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APPROVED AS TO FORM:
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Darrin M. Coker
City Attorney
Interlocal Agreement ACCD.96
THE STATE OF TEXAS §
COUNTIES OF FORT BEND, §
BRAZORIA AND HARRIS §
INTERLOCAL AGREEMENT
I. PARTIES
A. Address
THIS AGREEMENT ("Agreement") is made by and between the CITY OF
PEARLAND, TEXAS ("City"), a municipal corporation and home-rule city of the State of
Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and
through its governing body,the City Council; ALVIN COMMUNITY COLLEGE DISTRICT
("College"), located at 3110 Mustang, Alvin, Texas 77511; and the REINVESTMENT ZONE
NUMBER TWO, CITY OF PEARLAND, TEXAS ("the "Reinvestment Zone"), a
reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax
Code, acting by and through its Board of Directors. This Agreement is made pursuant to Section
311.013 of the Texas Tax Code, which Section permits a taxing unit to enter into agreements to
pay into the tax increment fund any of its tax increment produced from property located in a
reinvestment zone.
The initial addresses of the parties, which one party may change by giving written notice
of its changed address to the other parties, are as follows:
City College The Reinvestment Zone
City Manager Alvin Comm. College District Reinvestment Zone Number
or Designee Attn: Chair, Bd. of Trustees Two, City of Pearland, Texas
City of Pearland, Texas 3110 Mustang Attention: Chairman
3519 Liberty Drive Alvin, Texas 77511 do City of Pearland, Texas
Pearland, Texas 77581 3519 Liberty Drive
Pearland, Texas 77581
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B. Index
The City, the College and the Reinvestment Zone hereby agree to the terms and
conditions of this Agreement. This Agreement consists of the following sections:
Section/Description Page
I. PARTIES 1
II. DEFINITIONS 5
III. BACKGROUND 6
IV. OBLIGATIONS OF THE COLLEGE 6
V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE 8
VI. LIMITATION ON THE PARTICIPATION OF THE COLLEGE 8
VII. TERM AND TERMINATION 9
VIII. MISCELLANEOUS 10
Exhibit"A"—City of Pearland Ordinance No. 891
C. Parts Incorporated
All of the above described sections and documents are hereby incorporated into this
Agreement by this reference for all purposes.
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IN WITNESS HEREOF, the City, the College and the Reinvestment Zone have made
and executed this Agreement in multiple copies, each of which is an original.
CITY OF PEARLAND, TEXAS ALVIN COMMUNITY COLLEGE
a home rule municipality DISTRICT
City Manager Date Chair, Board of Trustees Date
ATTEST:
Secretary, Board of Trustees Date
City Secretary Date
(SEAL)
APPROVED AS TO FORM:
Attorney
APPROVED AS TO FORM:
City Attorney Date
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REINVESTMENT ZONE NUMBER TWO,
CITY OF PEARLAND, TEXAS
By: Date
Title: Chairman, Board of Directors
ATTEST/SEAL:
By: Date
Title: Secretary, Board of Directors
[The remainder of this page is intentionally left blank.]
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II. DEFINITIONS
As used in this Agreement,the following terms shall have the meanings set out below:
"Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs
of operating the Reinvestment Zone and the imputed administrative costs associated with the
Reinvestment Zone incurred by the City in connection with the implementation of the project
plan.
"Agreement" means this agreement between the City, the College and the Reinvestment
Zone.
"Agreement Term" is defined in Section VI.
"Captured Appraised Value" means the captured appraised value of the Reinvestment
Zone as defined by Chapter 311, Texas Tax Code.
"City" is defined in Section I of this Agreement and includes its successors and assigns.
The "College" is defined in Section I of this Agreement and includes its successors and
assigns.
The "College Tax Increment Participation" means the amount of the College tax levy on
the Captured Appraised Value which the College agrees to contribute to the Reinvestment Zone
pursuant to Subsections A and B of Section IV of this Agreement.
"Countersignature Date" means that date shown as the date countersigned by the City
Manager on the signature page of this Agreement.
"Project Plan" means the project plan and reinvestment zone financing plan for the
Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by
the City Council of the City, as amended from time to time and specifically including
Amendment No.1 and Amendment No.2.
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"Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas
created by the City on December 21, 1998, by Ordinance No. 891, attached as Exhibit "A", and
enlarged by the City on June 26,2006 by Ordinance No. 1276, and includes its successors and
assigns.
"Tax Increment Fund" means the tax increment fund created by the City in the City
Treasury for the Reinvestment Zone.
Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter
311, Texas Tax Code, as applicable.
III. BACKGROUND
By Ordinance No. 891, adopted December 21, 1998, the City created the Reinvestment
Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone,
and by Ordinance No. 1276, the City enlarged the area of the Reinvestment Zone. The City will
deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. The
College desires to participate in the Reinvestment Zone in consideration for the agreements set
forth below.
The College received written notice from the City of the City's intent to establish the
Reinvestment Zone. Such notice was received more than sixty (60) days before the public
hearing on the creation of the Reinvestment Zone and confirms in all respects to the requests of
§311.003 of the Texas Tax Code.
IV. OBLIGATIONS OF THE COLLEGE
A. Tax Increment Participation by the College.
For and in consideration of the agreements of the parties set forth herein, and subject to
the remaining subsections of this section, the College agrees to participate in the Reinvestment
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Zone by contributing the below listed amounts of the tax increment produced in the
Reinvestment Zone attributable to the College to the Tax Increment Fund during the years 2007
through 2016 ("the College Tax Increment Participation").
The amount to be contributed by the College is fifty percent (50%) of all taxes on the
captured appraised value collected by the College for the years 2007 through 2016; provided,
however, that the College shall have the option to increase its Tax Increment Participation to a
level that may be used to pay for bonds for a potential future campus located within the College
District.
The College's Tax Increment Participation and obligation to participate in the
Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised
Value in the Reinvestment Zone in the amounts shown above. The College shall not be
obligated to pay its College Tax Increment Participation from other College taxes or revenues or
until the College Tax Increment Participation in the Reinvestment Zone is actually collected.
The obligation to pay the College Tax Increment Participation shall accrue as taxes representing
the College tax increment are collected and payment shall be due on the first day of each
calendar quarter(January 1st, April 1st, July 1st, October 1st) . The City and Reinvestment Zone
agree that no interest or penalty will be charged to the College.
B. Expansion of the Investment Zone
The obligation of the College to participate in the Reinvestment Zone is limited to the
entire Reinvestment Zone as enlarged. The College's participation shall not extend to the tax
increment on any additional property added to the Reinvestment Zone by the City unless the
College approves the participation [which includes the 453 acres, more or less, located south of
FM 518, to be joined in the TIRZ].
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V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE
A copy of any subsequent amendments, not including Amendments No.1 and No.2,to the
Reinvestment Zone Project Plan shall be provided to the College before any such amendment is
finally approved by the Reinvestment Zone.
VI. TERM AND TERMINATION
A. Condition Precedent
This Agreement shall not be effective unless and until all property in the Reinvestment
Zone that is located within Fort Bend County is annexed to the College district.
B. Agreement Term
Assuming the condition precedent set forth in paragraph VII.A is satisfied, then this
Agreement shall become effective as of the date of the final signature hereto, and shall remain in
effect for the life of the Reinvestment Zone. The first payment of the College Tax Increment
Participation shall be for those taxes levied by the College in the year 2007, and the last payment
by the College under this Agreement is for those taxes levied by the College in the year 2016.
C. Early Termination by Zone
The City shall not adopt an ordinance terminating the Reinvestment Zone earlier than the
duration of the Zone established in Ordinance No. 891, without the prior consent of the College,
provided that the Reinvestment Zone may otherwise terminate by operation of law.
D. Disposition of Tax Increments
Upon termination of the Reinvestment Zone, if all public improvements in the Project
Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the
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City and the Reinvestment Zone shall pay to the College all monies remaining in the Tax
Increment Fund that are attributable to the College Tax Increment Participation.
VII. MISCELLANEOUS
A. Severability
In the event any term, covenant or condition herein contained shall be held to be invalid
by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant
or condition herein contained, provided that such invalidity does not materially prejudice either
the College, the City or the Reinvestment Zone in their respective rights and obligations
contained in the valid terms, covenants or conditions hereof.
In the event any term, covenant or condition shall be held invalid and affects in any
manner the limitations on the College's contributions or participation, then this Agreement shall
be void as to the College and the College shall have no liability for any incremental or other
payments as may otherwise be provided for in this Agreement.
B. Entire Agreement
This Agreement merges the prior negotiations and understandings of the parties hereto
and embodies the entire agreement of the parties, and there are no other agreements, assurances,
conditions, covenants (express or implied) or other terms with respect to the covenants, whether
written or verbal, antecedent or contemporaneous, with the execution hereof.
C. Written Amendment
Unless otherwise provided herein, this Agreement may be amended only by written
instrument duly executed on behalf of each party.
D. Notices
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All notices required or permitted hereunder shall be in writing and shall be deemed
delivered when actually received or, if earlier, on the third (3rd) day following deposit in a
United States Postal Service post office or receptacle with proper postage affixed (certified mail,
return receipt requested) addressed to the respective other party at the address prescribed in
Section I of this Agreement or at such other address as the receiving party may have therefore
prescribed by notice to the sending party.
E. Non-Waiver
Failure of any party hereto to insist on the strict performance of any of the agreements
herein or to exercise any rights or remedies accruing hereunder upon default or failure of
performance shall not be considered a waiver of the right to insist on, and to enforce by any
appropriate remedy, strict compliance with any other obligation hereunder or to exercise any
right or remedy occurring as a result of any future default or failure of performance.
F. Assignment
No party shall assign this Agreement at law or otherwise without the prior written
consent of the other parties.
No party shall delegate any portion of its performance under this Agreement without the
written consent of the other parties.
G. Successors
This Agreement shall bind and benefit the parties and their legal successors. This
Agreement does not create any personal liability on the part of any officer or agent of the City or
any trustee, officer, agent or employee of the College.
H. No Waiver of Immunity
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No party hereto waives or relinquishes any immunity or defense on behalf of itself, its
trustees, officers, employees, and agents as a result of its execution of this Agreement and
performance of the covenants contained herein.
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