R2006-149 09-11-06
RESOLUTION NO. R2006-149
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 Reports on Developer Reimbursement, attached hereto
as Exhibit "A".
PASSED, APPROVED and ADOPTED this the 11th day of September, A.D., 2006.
= j~R~
TOMREID
MAYOR
ATTEST:
APPROVED AS TO FORM:
()~ Ii. CrI--
DARRIN M. COKER
CITY ATTORNEY
EXHIBIT
11 Greenway Plaza, Suite 1515
Houston, TX 77046
(713) 621-1515
Fax: (713) 621-1570
/!'L
Null'Lairson
il
~ A 'e
One Sugar Creek Blvd., Suite 920
Sugar Land, TX 77478
(281) 242-8600
Fax: (281) 242-7333
CERTIAED PURI./C ACCOIINTANTS
PIlDfESSIONAI.. CORJl('MTION
January 30, 2006
Reinvestment Zone No. Two,
City of Pearl and, Texas
Attn: Chairman, Board of Directors
C/o- City of Pearl and, Texas
3519 Pearland 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-fmance 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.
Ptdc..-~~, ~.<!..
SCHEDULE A
TAX INCREMENT REINVESTMENT ZONE NO.2
CITY OF PEARLAND. TEXAS
RECAPITULATION OF AMOUNTS DUE TO
SHADOW CREEK RANCH DEVELOPMENT COMPANY. I..P.
As of Januarv 30. 2006
Letter Finance Agreement LFA LFA Actual
(LFA) Date Amount Cost Interest * Total
LFA 03-10-001 (Remaining Village 2 10/07/03 $ 7,554,654 $ 7,306,587 $ 793,059 $ 8,099,646
Phase 2 Improvements)
$ 7,554,654 $ 7,306,587 $ 793,059 $ 8,099,646
* Interest computed through January 30, 2006 at 8% for $2,384,575 of actual cost and at 6.50% for the balance.
11 Cree.way Plaza. Suite 1515
Houston, TX 77046
(713) 621-1515
Fax: (713) 621-1570
li'L
Null & Lairson
One Sugar Creek Blvd., Suite 920
Sugar Lsmd, TX 77478
(281) 242-8600
Fax: (281)242-7333
CFRlIRlD PlIIJCICCOl.MANT5
l'flIlFESSDIW.~llON
March 20, 2006
Reinvestment Zone No. Two,
City of Pearland, Texas
Attn: Chainnan, Board of Directors
C/o- City of Pearl and, Texas
3519 Pearland 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 tbe 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 TlRZ budget (adjusted for inflation)
establisbed 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 6.50 percent per annum for up to five
years on the Creation costs and five years from date of completion of construction of the TlRZ
improvements. Based upon this rate of interest, interest due as of the date of tbe letter is indicated
on Scbedule A.
Ptdt..- ~~, ~.(!..
SCHEDULE A,
TAX INCREMENT REINVESTMENT ZONE NO.2
CITY OF PEARLAND. TEXAS
RECAPITULA nON OF AMOUNTS DUE TO
SHADOW CREEK RANCH DEVELOPMENT COMPANY. L.P.
AI of March 20. 2006
Letter Finance Agreement LFA LFA Actual
(LF A) Date Amount Cost Interest * Total
LF A 04-07-4102 (FjrelPolice Station 07/13/04 $ 408,668 S 408,668 $ 104,763 S 513,43 t
Land Cost)
S 408,668 $ 408,668 $ 104,763 S 513,431
'" Interest computed through March 20, 2006 at 6.50%.
11 Greenway Plaza, Suite 1515
Houston, TX 77046
(713) 621-1515
Fax: (713) 621-1570
/!'L
Null ,Lairson
One Sugar Creek Blvd., Suite 920
Sugar Land, TX 77478
(281) 242-8600
Fax: (281) 242-7333
CERTIAED PUBlIC ACCOIINTANTS
PPDFESSIONAL CORPOAATION
June 5, 2006
Reinvestment Zone No. Two,
City of Pearl and, Texas
Attn: Chairman, Board of Directors
C/o- City of Pearl and, Texas
3519 Pearland 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-fmance 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 6.50 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.
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 June 5. 2006
Letter Finance Agreement LFA LFA Actual
(LFA) Date Amount Cost Interest * Total
LFA 02-08-001 (Village 1 and Village 08/06/02 $ 4,727,516 $ 4,714,681 $ 889,173 $ 5,603,854
2 Phase 2 Improvements)
$ 4,727,516 $ 4,714,681 $ 889,173 $ 5,603,854
* Interest computed through June 5, 2006 at 6.50%.
11 Greenway Plaza, Suite 1515
Houston, TX 77046
(713) 621-1515
Fax: (713) 621-1570
/!'L
Null. Lairson
One Sugar Creek Blvd., Suite 920
Sugar Land, TX 77478
(281) 242-8600
Fax: (281) 242-7333
CERTIFIED PURlJC ACCOIJNTANTS
f'PDF[SSIONAL CORJlOR.o\TION
August 28, 2006
Reinvestment Zone No. Two,
City of Pearl and, Texas
Attn: Chairman, Board of Directors
C/o- City of Pearl and, Texas
3519 Pearland Drive
Pearl and, Texas 77581
Re: Independent Accountants' Report - Completion ofTIRZ improvements:
Dear Mr. Chairman and Members ofthe 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-fmance 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 6.50 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 ofthe letter is indicated
on Schedule A.
Pt.d(-~~, ~.~.
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 28. 2006
Letter Finance Agreement LFA LFA Actual
(LFA) Date Amount Cost Interest · Total
LFA 01-11-002 (Additional Village 1 and
Village 2 Improvements) W12/01 $ 24,509,430 $ 24,444,754 $ 4,215,469 $ 28,660,223
LFA 03-10-002 (Village 3, Phase 1 and
2 Improvements) 10/07/03 7,809,950 7,806,658 999,791 8,806,449
LFA 06-03-001 (Elementary School #2
Site) 03/27/06 1,687,801 1,322,037 43,555 1,365,592
LFA 06-08-002 (Library Site) 08/28/06 481,569 377,208 31,236 408,444
$ 34,488,750 $ 33,950,657 $ 5,290,051 $ 39,240,708
* Interest computed through August 28, 2006 at 6.50%.