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R2022-276 2022-12-12RESOLUTION NO. R2022-276 A Resolution of the City Council of the City of Pearland, Texas, authorizing the City Manager or his designee to enter into a Reimbursement Agreement between the City and the Pearland Economic Development Corporation; associated with the Lower Kirby Master Drainage Plan Land Acquisition. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Reimbursement Agreement by and between the City of Pearland and the Pearland Economic Development Corporation, a copy of which is attached hereto as Exhibit “A” and made a part hereof for all purposes, are 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 Reimbursement Agreement associated with the Lower Kirby Master Drainage Plan Land Acquisition. PASSED, APPROVED and ADOPTED this the 12th day of December, A.D., 2022. ________________________________ J. KEVIN COLE MAYOR ATTEST: ________________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ________________________________ DARRIN M. COKER CITY ATTORNEY DocuSign Envelope ID: 99411CF0-CD66-4E92-9EAB-D0E3524061A3 DocuSign Envelope ID: E3FE1AC8-0937-4FB4-A9BD-27402759A707 REIMBURSEMENT AGREEMENT LOWER KIRBY MASTER DRAINAGE PLAN MAIN POND LAND ACQUISITION PMMD#1 REIMBURSEMENT ASSUMPTION This Agreement is entered into this 12 th day of December, 2022, by and between the CITY OF PEARLAND, TEXAS (hereinafter "City"), and the Pearland Economic Development Corporation (hereinafter "PEDC"). WHEREAS, the PEDC is a Type B economic development corporation, created pursuant to Chapter 505 of the Texas Local Government Code, as amended; and WHEREAS, the City and Lower Kirby Pearland Management District ("LKPMD") and Pearland Municipal Management District No. 1 ("PMMD#1") have approved a Master Drainage Plan ("Plan") for the area located within the boundaries of LKPMD and PMMD#1. WHEREAS, the LKPMD, PMMD#1, City and PEDC desire to make drainage improvements to create or expand detention ponds and conveyance facilities located in the Master Drainage Plan Regional Detention Service Area in accordance with the Plan as amended (hereinafter "Improvements"); and WHEREAS, the City and PEDC desire to acquire the fee simple title interest in certain real property in order to make the Improvements (hereinafter"Property Acquisition"); and WHEREAS, Section 501.103 of the Texas Local Government Code (hereinafter"Code"), in pertinent part, defines the term "project" to mean "expenditures that are found by the board of directors to be required or suitable for infrastructure necessary to promote or develop new or expanded business enterprises, limited to: (1) streets and roads, rail spurs, water and sewer utilities, electric utilities, or gas utilities, drainage, site improvements, and related improvements; (2) telecommunications and Internet improvements . . ."; and WHEREAS, the City is entitled to receive eligible reimbursements from PMMD#1 for PMMD#1's portion of the respective costs associated with the Property Acquisition of and engineering of the Improvments; and WHEREAS, the City entered into a Financing Agreement with PMMD#1 on March 10, 2014 for PMMD#1's portion of the respective costs associated with the Property Acquisition and engineering; and WHEREAS, the City has previously received eligible reimbursements from LKPMD in April 2016 for the costs associated with LKPMD's portion of the Property Acquisition and engineering; and 1 DocuSign Envelope ID: E3FE1AC8-0937-4FB4-A9BD-27402759A707 WHEREAS, PEDC desires to reimburse the City for PMMD#1's share of the costs associated with the Property Acquisition and engineering; and WHEREAS, PEDC approved funding for PMMD#1's portion of the costs associated with the Property Acquisition and engineering for the Improvements at its December 8, 2022 Board of Directors' meeting; and WHEREAS, City and PEDC desire an agreement to set forth their respective responsibilities with regard to the reimbursement of costs related to the Property Acquisition and engineering. WITNESSETH: NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed as follows: 1. The City contracted and paid for all professional services necessary to provide documentation to acquire the fee interest in the Property Acquisition. 2. The City acquired, on behalf of the LKPMD and PMMD#1, the parcel(s) needed for the Improvements as identified in Exhibit "A" attached hereto. 3. The PMMD#1's portion of the cost of the Property Acquisition of the parcel(s) and engineering paid by the City is $622,513 ("City Portion"), as shown in Exhibit "B". The PEDC agrees to fund the City Portion ("PEDC Participation"). The PEDC Participation amount shall be paid to City a lump sum amount. The timing and amount of the payment shall be determined at sole discretion of the City, but in no event shall the total payments exceed the actual cost of the Property Acquisition. 4. This Agreement is in consideration of the City entering into a Financing Agreement with PMMD#1 whereby City agreed to pre-finance the Property Acquisition in return for PMMD#1's agreement to reimburse the City for the costs associated with the Property Acquisition ("Reimbursable Fund Payments"). Within 90 days following City's receipt of a Reimbursable Fund Payment from PMMD#1 that is attributable to the Property Acquisition and engineering, City shall make payment to PEDC, in an amount equal to the Reimbursable Fund Payment, as reimbursement for the PEDC Participation Amount. Any interest paid by PMMD#1 shall remain with the City and not refunded PEDC. 5. The initial term of this Agreement shall be for a period of three (3) years, commencing on the th day of , 2022, and may be renewed as needed until the Reimbursable Fund Payments is complete. 6. This Agreement may only be amended, modified, or supplemented by written agreement and signed by both parties. 2 DocuSign Envelope ID: E3FE1AC8-0937-4FB4-A9BD-27402759A707 8. No assignment by a party hereto of any rights under or interests in this agreement will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. 9. Nothing herein is intended to supersede or waive any City ordinance or regulation pertaining to such construction. 10. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is prohibitive or invalid under applicable law, such provision shall be ineffective to the extent of such provision or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 11. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Texas. 12. To accomplish execution of this Agreement, it may be executed in multiple counterparts. 13. The Parties agree that any suit arising out of or related to this Agreement shall be filed in Brazoria County Texas. 14. All notices which are required or may be given pursuant to this Agreement shall be in writing and shall be sufficient if delivered personally or by first class mail, postage prepaid, return receipt requested, or by a nationally recognized courier, to the parties and their attorneys at the addresses set out below or such other addresses as the parties or their attorneys may hereafter notify one another: If to City: City of Pearland Attn: Trent Epperson, Interim City Manager 3519 Liberty Drive Pearland, TX 77581 If to PEDC: Pearland Economic Development Corporation Attn: Chairman 3519 Liberty Drive, Suite 350 Pearland, TX 77581 Notice delivered in accordance with the terms hereof shall be effective upon receipt. 3 DocuSign Envelope ID: E3FE1AC8-0937-4FB4-A9BD-27402759A707 In witness whereof, the parties have hereunto set their hands and signatures on the date first above mentioned. PEARLAND ECONOMIC DEVELOPMENT CORPORATION a Texas non-profit corporation F��AADoRRcuSigned by: By: 713DG907C8CA488_. Mona Chavarria Chair CITY OF PEARLAND, a Texas municipal corporation DocuSigned by: By: �, -- F 9t_ &I2'DC740423... Trent Epperson, Interim City Manager ATToE§Td by: FratAa s Q$ar yUtC;225J1F r415... Frances /�gullar City Secretary 4 DocuSign Envelope ID: E3FE1AC8-0937-4FB4-A9BD-27402759A707 EXHIBIT B Main Pond Acquisition and Engineering Costs PMMD#1 Portion Description Total Cost Property Acquisition $ 539,527.51 Detention Analysis $ 34,275.91 Detention Phasing Plan $ 4,992.56 Lower Kirby Phase 1 PER $ 43,716.96 Total PMMD#1 Cost* $ 622,512.94 *Any interest paid by PMMD#1 shall remain with the City and not refunded PEDC. 6