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R99-046 06-14-99RESOLUTION NO. R99-46 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 BRAZORIA DRAINAGE DISTRICT NO. 4 ( `BDD4") TO OUTLINE THE OBLIGATIONS OF BDD4 AND THE CITY AS PARTICIPANTS IN REINVESTMENT ZONE #2. 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 Brazoria Drainage District No. 4, a copy of which is attached hereto 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 BDD4 and the City as participants in Reinvestment Zone #2. PASSED, APPROVED and ADOPTED this the j i 411-k day of , A. D., 1999. n ATTEST: • Ate AfrAgatz,,,,,,,,, NG L!' '`rG Y S E • TARY APPROVED AS TO FORM: DARRIN M COKER CITY ATTORNEY TOM REID MAYOR THE STATE OF TEXAS COUNTIES OF BRAZORIA, FORT BEND, AND HARRIS § § § § INTERLOCAL AGREEMENT I. PARTIES A. Address THIS INTERLOCAL 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 Brazoria, Fort Bend, and Harris, acting by and through its governing body, the City Council; BRAZORIA DRAINAGE DISTRICT NO. 4 (the "District"), located at 4805 W. Broadway, Pearland, Texas 77581; 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 Chapter 791 of the Texas Government Code and Section 311.013 of the Texas Tax Code. 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 City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 The District Brazoria Drainage District No. 4 Attention: Director 4805 W. Broadway Pearland Texas 77581 City District The Reinvestment Zone Reinvestment Zone Number Two, City of Pearland, Texas Attention: Chairman c/o City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Reinvestment Zone Page 1 B Index The City, the District 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 District 6 V. Obligations of City and the Reinvestment Zone 8 VI. Term and Termination 8 VII. Miscellaneous 9 Exhibit "A" — City of Pearland Ordinance No. C. Parts Incorporated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. City District Reinvestment Zone Page 2 IN WITNESS HEREOF, the City, the District and the Reinvestment Zone have made and executed this Agreement in multiple copies, each of which is an original. CITY OF PEARLAND, TEXAS, BRAZORIA DRAINAGE DISTRICT NO. 4 a Texas Home Rule Municipality By: City Mayor Date Chairman, Board of Directors Date ATTEST: City Secretary Date (SEAL) Secretary, Board of Directors Date Member, Board of Directors Date COUNTERSIGNED: APPROVED AS TO FORM: City Manager Date Attorney Date APPROVED AS TO FORM: City Attorney Date City District Reinvestment Zone Page 3 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.] City District Reinvestment Zone Page 4 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 District 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. "Countersignature Date" means that date shown as the date countersigned by the City Manager on the signature page of this Agreement. "The District" is defined in Section I of this Agreement and includes its successors and assigns. "The District Tax Increment Participation" means the amount of the District tax levy on the Captured Appraised Value which the District agrees to contribute to the Reinvestment Zone pursuant to Subsections A and B of Section IV 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. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created by the City on , by Ordinance No. , attached as Exhibit "Al" 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. City District Reinvestment Zone Page 5 Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter 311, Texas Tax Code, as applicable. By Ordinance No. III. BACKGROUND , adopted , the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. The District desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. The District 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 conforms in all respects to the requirements of §311.003 of the Texas Tax Code. IV. OBLIGATIONS OF THE DISTRICT A. Tax Increment Participation by the District For and in consideration of the agreements of the parties set forth herein, and subject to the remaining subsections of this section, the District agrees to participate in the Reinvestment Zone, contributing the below listed amounts of the tax increment produced in the Reinvestment Zone attributable to the District to the Tax Increment Fund during the term of this Agreement (the "District Tax Increment Participation") The amount to be contributed by the District each year during the term of this Agreement shall not be greater than the amount produced by multiplying $0.070720 by the then current Captured Appraised Value for the Reinvestment Zone certified by the appraisal district. If in any year the District levies ad valorem taxes at a rate less than $0.070720, the District shall pay the Reinvestment Zone the product of multiplying such lesser rate by the then current Captured Appraised Value for the Reinvestment Zone certified by the appraisal district. If in any year the District levies ad valorem taxes City District Reinvestment Zone Page 6 at a rate greater than $0.070720, the District shall pay to the Reinvestment Zone only the product of multiplying $0.070720 by the then current Captured Appraised Value, and the District will retain all tax revenue produced by the multiplication of the larger rate less the tax revenues produced by multiplying $0.070720 by the then current certified Captured Appraised Value. The District'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 amount shown above. The District shall not be obligated to pay its District Tax Increment Participation from other District taxes or revenues or until the District Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the District Tax Increment Participation shall accrue as taxes representing the District tax increment are collected by the District and payment shall be due on the first day of each calendar quarter. The City and the Reinvestment Zone agree that n o interest or penalty will be charged to the District. B. Expansion of the Investment Zone The obligation of the District to participate in the Reinvestment Zone is limited to the area described in Exhibit "A" attached hereto. The District's participation shall not extend to the tax increment o n any additional property added to the Reinvestment Zone by the City unless the District approves the participation. C Board of Directors The District will designate, by resolution, an individual to serve on the Reinvestment Zone Board of Directors. No member of the Board of Directors of the District is eligible to serve on the Board of Directors of the Reinvestment Zone. Provided that the individual so designated is eligible for service o n the Reinvestment Zone Board of Directors, the City will appoint that individual as a member of the Reinvestment Zone Board of Directors. City District Reinvestment Zone Page 7 V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE A. Copy of Project Plan A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to the District before any such plan is finally approved. B Approval of Drainage Plans The City and the Reinvestment Zone agree that the City and the District shall both approve the master drainage plan for the Reinvestment Zone prior to the approval by the City of any Final Plats within the Reinvestment Zone. The City agrees to only approve Final Plats that conform to the master drainage plan. The master drainage plan may be amended only by mutual approval of the City and the District. Upon submission of a Final Plat to the City for property within the Reinvestment Zone, the City will require drainage plans to be submitted to the District for review, comment, and recommendation regarding the Plat's conformance with the master drainage plan. It is anticipated that the District may charge applicable review fees. In addition, during construction the District shall have the reasonable right of access for inspection purposes. VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the District Tax Increment Participation shall be for those taxes levied by the District in the year 1999 and the last payment by the District under this Agreement is for those taxes levied by the District in the year 2028. B Early Termination The City shall not adopt an ordinance terminating the Reinvestment Zone earlier than the duration of the Zone established in Ordinance No. , without the prior consent of the District, provided that the Reinvestment Zone may otherwise terminate by operation of law. City District Reinvestment Zone Page 8 C. 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 City and the Reinvestment Zone shall pay to the District all monies remaining in the Tax Increment Fund that are attributable to the District 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 District, the City o r 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 District's contributions or participation, then this Agreement shall be void as to the District and the District 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 e mbodies 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 o r 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. City District Reinvestment Zone Page 9 D. Notices 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 theretofore 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 o r to exercise any rights or remedies accruing hereunder upon default or failure of performance shall n ot 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 of any officer, agent o r employee of the District. City District Reinvestment Zone Page 10 H. No Waiver of Immunity 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. City District Reinvestment Zone Page 11