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R2023-265 2023-10-23RESOLUTION NO. R2023-265 A Resolution of the City Council of the City of Pearland, Texas, approving a 5th Amended Development Agreement with Savannah Development LTD., a limited partnership (“SAVANNAH”). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain 5th Amended Development Agreement by and between the City of Pearland and Savannah, 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 that certain 5th Amended Development Agreement with Savannah. PASSED, APPROVED and ADOPTED this the 23rd day of October, A.D., 2023. _________________________________ J. KEVIN COLE MAYOR ATTEST: ________________________________ FRANCES AGUILAR, TRMC, MMC CITY SECRETARY APPROVED AS TO FORM: ________________________________ DARRIN M. COKER CITY ATTORNEY DocuSign Envelope ID: 96DD53B2-5E80-4B2C-BB6D-0DF9C31BB718 1 FIFTH AMENDED AND RESTATED DEVELOPMENT AGREEMENT This FIFTH AMENDED AND RESTATED DEVELOPMENT AGREEMENT (this “Agreement”), is made and entered into as of the ____, October 2023, by and between the CITY OF PEARLAND, TEXAS, a municipal corporation and home-rule city of the State of Texas (the “City”), and SAVANNAH DEVELOPMENT, LTD., (the “Developer”). RECITALS This Fifth Amended and Restated Development Agreement is entered into to replace in its entirety, the original Development Agreement entered into by and between the City and the Developer, as amended, under the terms and conditions fully restated herein. Resolution R2000- 89, dated July 24, 2000, authorized and approved the Original Development Agreement. Resolution No. R2002-163, dated November 11, 2002, authorized and approved the First Amended Development Agreement. Resolution no. R2005-75, dated April 25, 2005, authorized and approved the Second Amended Development Agreement. Resolution no. R2005-96, dated June 13, 2005 authorized and approved the Third Amended Development Agreement. Resolution no. R2017-223, dated October 23, 2017, authorized and approved the Fourth Amended and Restated Development Agreement. The Developer has the right to own and develop certain property located in the general vicinity of State Highway 6 and Farm to Market Road No. 521, in Brazoria County, located entirely within the extraterritorial jurisdiction (“ETJ”) of the City, more fully described in Exhibit A, attached hereto (the “Property”), and the Developer has determined that the creation of two municipal utility districts (the “Districts”) over the Property is necessary for the provision of water, sewer and drainage facilities necessary to develop the Property. In accordance with applicable law, the consent of the City is required for the creation of municipal utility districts within the City's ETJ, and the City was willing to consent to such creations, as expressed in Resolution 2000-21, adopted by the City Council of the City on February 14, 2000, in lieu of the current annexation of the Property, subject to certain conditions. The City consented to the creation of Brazoria County Municipal Utility District No. 21 as expressed in Resolution 2000-127 and Brazoria County Municipal Utility District No. 22 as expressed in Resolution 2000-128 both which were dated October 23, 2000. Section 43.0751, Tex. Local Gov't Code (the “Act”) provides for the negotiation and implementation of “strategic partnership agreements” between cities and municipal utility districts, whereby the continued existence and various areas of governmental cooperation may be provided for by agreement, and the City is interested in entering into such agreements with the Districts immediately subsequent to their creation and organization. The fully executed Strategic Partnership Agreements between the City and the Districts are attached herewith as Exhibit “D”. The Developer and the City agree that the City’s consent to the creation of the Districts is subject to the City’s standard conditions relating to the creation of districts in its ETJ. The City and the Developer have determined that they are authorized by the Constitution and laws of the DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 2 State of Texas to enter into this Agreement and have further determined that the terms, provisions, and conditions hereof are mutually fair and advantageous to each. AGREEMENT For and in consideration of these premises and of the mutual promises, obligations, covenants, and benefits herein contained the City and the Developer contract and agree as follows: ARTICLE 1 DEFINTIONS The terms “Act,” “City,” “Developer,” Districts,” “ETJ,” and “Property” shall have the meanings provided for them in the Recitals, above. Except as may be otherwise defined, or the context clearly requires otherwise, capitalized terms and phrases used in this Agreement shall have the meanings as follows: CR58 Segment means the segment of Brazoria County Road 58 described in Section 3.03(a), below. City Subdivision Ordinance means those regulations adopted by Ordinance 421, passed March 31, 1981, as amended. Consent Ordinance means the ordinance or resolution to be adopted by the City evidencing the City's consent to the inclusion of land within each of the Districts in accordance with Tex. Local Gov't Code Section 42.042 and Tex. Water Code Section 54.016, each as amended. Comprehensive Plan means the City's Comprehensive Plan for the location of streets, fire stations, libraries and other public facilities, adopted November 22, 1999, as amended subject to the rights of the parties hereto. Developer's Road Contribution means the Developer's payment to the City for construction of roads defined in Section 3.03, below. Fire Protection/ElYIS Agreement means the agreement effective September 19, 2002, between the City of Pearland, the Pearland Volunteer Fire Department and the Districts for the provision of fire protection services. Plan of Development means the Developer's conceptual land plan and criteria for the development of the Property, attached hereto as Exhibit B. SPA means a strategic partnership agreement between the City and one or more Districts pursuant to the terms of the Act. DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 3 ARTICLE 2 GENERAL STATEMENT Subject to the specific terms and conditions stated in this Agreement, the City will defer annexation of the Property. The City and the Developer have cooperated to accomplish the creation of the Districts in the ETJ and will further cooperate in the inclusion of lands within the Property into boundaries of one or both of the Districts. The City and Districts have executed strategic partnership agreements relating to the provisions of services within the Districts and the terms and conditions under which the Districts will be annexed and then dissolved by the City are set out. ARTICLE 3 OBLIGATIONS OF THE DEVELOPER 3.01 Fire station and library sites. (a) The developer agrees to donate to the City 1.3 acres and 2.0 acres of land, respectively, for the purpose of construction and operation of a City fire station and a proposed public library. The location of such sites shall be consistent with the Plan of Development. The exact location of such sites shall be approved by the City. All utilities shall be provided at the property line of each site at no cost to the City. The Fire Station Reserve shall be eligible for use to serve the Districts in accordance with the fire plan described in Section 4.01 of the SPA. A fire station has been constructed by the Districts in conformance with Section 6.e. of the Fire Protection/EMS Agreement. Any agreement for the use of the City fire station and library with a third party shall terminate upon annexation of the District in which it is located, unless the City agrees otherwise. i. The developer has platted and donated the fire station site. The 1.489-acre Fire Station site is out of the Savannah School Site & Fire Station Reserves, according to the plat thereof recorded under Clerk's File No. 2010006936 of the Official Public Records of Brazoria County, Texas. The fire station site has been donated to Brazoria County Municipal Utility District No. 21 by a Dedication Special Warranty Deed (Tract B, Fire Station Site) recorded under Clerk's File No. 2011002936 of the Official Public Records of Brazoria County, Texas. See attached Figure 10 and 11 of Exhibit “B” Plan of Development. ii. The developer shall convey, by Special Warranty Deed, the library site to Brazoria County Municipal Utility District No. 22 for the purpose of developing parks and recreational facilities, as further described below in 3.02. (b) The conveyances shall provide that (i) in the event the land is used for any purpose other than the specified purpose, without the written consent of the Developer, such site will revert to the Developer; and (ii) the Developer may make temporary use DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 4 of the land prior to the Districts' construction of the fire station and the City's construction of the library improvements, so long as the Developer vacates the land with all improvements within 60 days of receipt of notice from the District or the City, respectively, of its intention to commence construction thereon. Prior to the construction of any temporary improvements by the Developer, the Developer shall notify the City, and the City shall have the right to approve such improvements in advance. 3.02 Park Dedication. The Developer agrees to dedicate: (i) an approximately 19-acre tract, currently identified as “City Park” on Exhibit “B”, Figure 2, and an approximately 2-acre tract, currently identified as “Library” on Exhibit “B,” Figure 2, to Brazoria County Municipal Utility District No. 22 in place of conveyance to the City, for the purpose of developing parks and recreational facilities; and (ii) an off-site 45-acre tract (total 45 acres) consisting of 40.3 acres of park land and 4.7 acres of future McHard Road right-of-way to the City. In addition, the Developer shall pay $78.00 dollars per lot at the time the plat is recorded. (a) The developer shall convey, by Special Warranty Deed, the approximately 19-acre park site and approximately 2-acre library site to Brazoria County Municipal Utility District No. 22 on or before December 31, 2024. (b) The developer has deeded to the City, by a Dedication Special Warranty Deed recorded under Brazoria County Clerk's File No. 2008056574, a certain +/- 45.1- acre tract located on Cullen Boulevard (the "Cullen Tract") consisting of +/- 38.6- acres of park land and +/- 6.6-acres of road right of way for the Cullen Boulevard expansion and future McHard Road construction, as shown in Figure 9 of Exhibit "B" the Plan of Development. (c) The developer has paid $1213.60 for each lot platted within the 31.42 Acre Tract "A" (land associated with the 4th Amended Development Agreement) at the time of plat recordation. Developer shall have no other park land dedication requirements other than what is required in Exhibit “B”, Table 1: Composition of Land Usage. 3.03 Street construction. The Developer agrees to comply with the minimum road design standards in the City's Subdivision Ordinance as amended and approved by City Council on July 11, 1983, and the thoroughfare plan shown on the Plan of Development, except to the extent that the standards for road construction are inconsistent with the Plan of Development. The City agrees to use its best efforts to cause such future thoroughfare construction in the traffic shed to comply with the minimum design standards of the Comprehensive Plan. In addition, the Developer shall provide a contribution for road construction (the "Developer's Road Contribution") toward the construction of portions of the County Road 58 outside the Property, as detailed below. (a) County Road 58. County Road 58 will be planned as a major thoroughfare (120- foot right-of-way) as detailed in the Plan of Development. The Developer shall be DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 5 responsible for the construction of a four-lane boulevard section within the Property as shown on Figure 5 of the Plan of Development, and for a pro-rata share of a secondary thoroughfare outside the Property. As of the date of this agreement, the developer has constructed approximately 3,200 linear feet of the four-lane boulevard east of Savannah Parkway to the eastern boundary of the tract. The majority of County Road 58, within the ETJ, will be widened and constructed as development occurs adjacent to it under the City's Subdivision Ordinance. A portion of County Road 58, from County Road 48 west for approximately 2,560 feet (the "CR58 Segment") has already been developed with low-density housing and other similar uses that did not give rise to a requirement that a developer fund improvements to the CR58 Segment, and therefore future improvements thereto will not likely be funded by anyone under the Subdivision Ordinance; as a result, the CR58 Segment will need to be widened through the joint effort of the City, Brazoria County, and future development within the traffic shed. According to that certain traffic study carried out by Walter P. Moore, dated June 14, 2000, development of the Property will contribute 38 percent of the forecast traffic on the CR58 Segment. Subject to the contribution of other developers, and the timing of contributions described in Subsections (b) and (c), below, the Developer has paid to the City such percentage of the estimated construction costs of the CR58 Segment to be used for such purpose. The Developer's Road Contribution payment shall not exceed $93.40 per lot. (b) Timing of contribution. The Developer's Road Contribution shall be phased to coincide with the development of the Property. The total amount of the Developer's Road Contribution shall be divided by the number of lots anticipated to be provided on the Property in accordance with the Plan of Development, and in connection with the recording of a plat within the Property, the Developer will deposit with the City the per-lot amount as determined above, multiplied by the number of lots platted. The Developer's Road Contribution obligations with respect to platted Property shall terminate upon payment to the City. (c) Collection of funds from other developers. The parties understand that the City's Development Ordinance requires other developers to construct County Road 58 within or adjacent to their developments, in the same manner as the Developer will be required to construct County Road 58 within the Property. The City will require other developers to contribute to the CR58 Segment in accordance with applicable City development ordinances, and will credit the Developer's Road Contribution by the amount of such contributions, including the refund of any amounts already paid by the Developer with respect to applicable portions of the CR58 Segment. (d) Construction costs attributable to the Developer. Construction Costs under this Section means costs associated with the actual construction costs and engineering fees and expenses directly relating to the CR58 Segment, but shall not include costs of City financing or other costs not directly related to the CR58 Segment. DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 6 (e) City construction of alternative street design. If the City determines that the traffic requirements of County Road 58 may be satisfied by a different, less costly design, and wishes to make use of the Developer's Road Contributions to construct such an alternate roadway section, the City shall notify the Developer and may do so without Developer's written consent. In such event, Developer's thoroughfare design standards within the Property shall be modified to match the City's revised plan, and the Developer’s Road Contribution shall be decreased to an amount consistent with the revised thoroughfare design. (f) Separate accounting. The City agrees to invest the Developer’s Road Contributions in interest-bearing accounts, and to account for all principal and interest thereon, secured in the same manner and at the same interest rate that the City invests other City funds. (g) Final accounting. Upon completion of the CR58 Segment, or upon the occurrence of an event described herein such that the Developer is entitled to a return of all or a part of the Developer's Road Contributions, the City shall prepare a final accounting of funds advanced by the Developer, the use of such funds, and the earnings thereon, Within 30 days of the completion of the accounting, any unused funds or earnings shall be returned to the Developer. (h) County construction of alternate thoroughfare design. Because the subject portion of CR58 is not currently located within the City, it is possible that Brazoria County may wish to construct the CR58 improvements before the City does so. If, prior to the City improving CR58 east of the Property, Brazoria County elects to improve CR58 east of the Property as provided in the Comprehensive Plan, or to an alternate design standard from the design in the Comprehensive Plan, and such improvement will result in CR58 being improved to a minimum four-lane rural asphalt section road the City will make available to the County (the Developer's Road Contribution) on the same pro- rata share basis. In such event, the thoroughfare so constructed shall be considered to have complied with the Developer's financial obligations under this Section, and all provisions hereof relating to the City shall be construed to refer to Brazoria County. (i) Savannah Parkway. Savannah Parkway will be planned as a secondary thoroughfare (100-foot right of way) as detailed in the Plan of Development. The Developer shall be responsible for the construction of a four-lane boulevard section within the Prope1ty as shown on Figure 6 of the Plan of Development. As of the date of this Fifth Amended and Restated Development Agreement, the developer has constructed four lanes of Savannah Parkway from State Highway Six to Laurel Heights Drive. The Developer shall be responsible for constructing the remaining segment of Savannah Parkway from north of Laurel Heights Drive to County Road 894. The developer has no other roadway construction obligations under this agreement. DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 7 3.04 Cost reimbursement. The Developer has reimbursed the City for professional consulting fees reasonably incurred by the City in connection with the review and approval of this Agreement and the Strategic Partnership Agreement. Such cost shall be reimbursed within 30 days of notice thereof by the City, accompanied by copies of invoices therefor and appropriate backup documentation. 3.05 City gateway locations. The Developer agrees to make available to the City, at no cost, two locations along State Highway 6 (500 square foot minimum each) for City gateway sign locations. Such sites shall be mutually approved by the parties. The Developer shall have no funding obligation with respect to the gateway signs themselves, but shall cooperate to maintain their visibility. (a) The Developer has dedicated, at no cost to the City, i) a City Gateway Easement within Restricted Reserve B of the plat of Savannah Ridge Section Two as recorded under Clerk's File No. 02 038082 and in Volume 23, Page 51-54 of the Plat or Map Records of Brazoria County, Texas, Savannah Parkway, and ii) a City Gateway Landscape Easement within Restricted Reserve A of the plat of Southern Oaks Lane & Commercial Reserve No. 1 as recorded under Clerks File No. 01 047888 and in Volume 22, Page 149-152 of the Plat or Map Records of Brazoria County, Texas. 3.06 Confirming City actions. The obligations of the Developer with respect to Sections 3.01, 3.02, 3.03, and Article 4 are conditioned upon the adoption of one or more ordinances by the City that will allow the provisions of the Plan of Development to prevail over applicable City provisions of the City's Subdivision Code, infrastructure design criteria, Land Use and Urban Design Code, flood plain ordinance, and other applicable City codes and regulations to the extent of a specific conflict. ARTICLE 4 LAND AND DEVELOPMENT COVENANTS 4.01 City regulations applicable. The Developer agrees that, subject to the terms of this Agreement and the Plan of Development, it will abide by the terms of the City Subdivision Ordinance, infrastructure design criteria, the City Building Code, Land Use and Urban Design Code, and Flood Plain Ordinance, (collectively, the “Regulations”) notwithstanding the fact that some or all of such regulations would not otherwise apply to the Property located outside the City. Plans and specifications for all public improvements shall be submitted to and approved by the City before the Developer awards a construction contract for such improvements. The Developer agrees that, at the time the Developer records a subdivision plat for any tract of land in the Property, and prior to the sale or conveyance of any land within the Property, it will record restrictive covenants on such land requiring all subsequent grantees to abide by the Regulations in the same manner, and providing that the City is a third party beneficiary to such covenants. Such covenants will be provided to the City Manager for review and comment at least ten days prior to recording thereof. DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 8 4.02 Land use. The Developer agrees to comply with the provisions of Land Use and Urban Development Ordinance, revised June 26, 2000, as amended subject to the rights of the parties, with such variations thereto as may be required to conform to the Plan of Development. ARTICLE 5 CITY CONSENT TO CREATIONS AND STATEGIC PARTNERSHIP AGREEMENTS 5.01 City consent to creation. Subject to the provisions of this Development Agreement, the City consents to the creation of two Districts over the Property. Upon submission of a proper petition for consent, and subject to the consent conditions attached hereto as Exhibit C, the City will provide a written consent in a form acceptable under the rules of the TCEQ and the Attorney General of Texas. (a) The City provided written consent to the creation of Brazoria County Municipal Utility District No. 21 (590.17 acres) as expressed in resolution no. R2000-127 and Brazoria County Municipal Utility District No. 22 (327.38 acres) as expressed in resolution no. R2000-128 both which were dated October 23, 2000. This creation was associated with the original development agreement. (b) The City provided written consent to the annexation 34.78 acres of additional land into Brazoria County Municipal Utility District No. 21 as expressed in Ordinance No. 1151. (c) The City provided written consent to the annexation of 294.93 acres of additional land into Brazoria County Municipal Utility District No. 22 as expressed in Ordinance No. 1493. (d) The City provided written consent to the annexation of 31.42 acres of additional land into Brazoria County Municipal Utility District No. 22 as expressed in Ordinance No. 1565. 5.02 Strategic partnership agreements. Upon the creation and organization of each District, the Developer will present an SPA to the board of the District in substantially the form attached hereto as Exhibit D. The Developer shall use its best efforts to secure the approval of the SPA by the District as soon as practicable. Any revisions to the form of the SPA shall be made subject to the approval of the City, the Developer and the District's board of directors. The parties acknowledge that if the SPAs are not approved by the Districts, the provisions of Tex. Local Gov't Code, §43.052(h)(l) allow the City to annex the Districts prior to substantial development therein without regard to the requirements of a municipal annexation plan under such section. DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 9 ARTICLE 6 TERM AND DEFAULT 6.01 Term. This Agreement shall terminate 15 years after the date the ordinance authorizing and approving the consent to this Fifth Amended and Restated Development Agreement, unless terminated earlier as specifically provided herein. 6.02 Default. (a) A party shall be deemed in default under this Agreement (which shall be deemed a breach hereunder) if such party fails to materially perform, observe or comply with any of its covenants, agreements or obligations hereunder or breaches or violates any of its representations contained in this Agreement. (b) Before any failure of any party to perform its obligations under this Agreement shall be deemed to be a breach of this Agreement, the party claiming such failure shall notify, in writing, the party alleged to have failed to perform of the alleged failure and shall demand performance. No breach of this Agreement may be found to have occurred if performance has commenced to the reasonable satisfaction of the complaining party within 30 days of the receipt of such notice, subject, however, to the terms and provisions of Section 7.01, below. Upon a breach of this Agreement, the non-defaulting Party may be awarded actual damages for failure of pe1foimance. Except as otherwise set forth herein, no action taken by a party pursuant to the provisions of this Section pursuant to the provisions of any other section of this Agreement shall be deemed to constitute an election of remedies and all remedies set forth in this Agreement shall be cumulative and non-exclusive of any other remedy either set forth herein or available to any Party at law or in equity. Each of the patties shall have the affirmative obligation to mitigate its damages in the event of a default by the other party. ARTICLE 7 MISCELLANEOUS PROVISIONS 7.01 Force majeure. In the event either party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, except the obligation to pay amounts owed or required to be paid pursuant to the terms of this Agreement, then the obligations of such party, to the extent affected by such force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused to the extent provided but for no longer period. As soon as reasonably possible after the occurrence of the force majeure relied upon, the party whose contractual obligations are affected thereby shall give notice and full particulars of such force majeure to the other party. Such cause, as far as possible, shall be remedied with all reasonable diligence. The term “force majeure,” as used herein, shall include without limitation of the generality thereof, acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States or the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 10 fires, hurricanes, storms, floods, washouts, drought, arrests, restraint of government, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply resulting in an inability to provide water necessary for operation of the water and wastewater systems hereunder, and any other inabilities of any party, whether similar to those enumerated or otherwise, which are not within the control of the party claiming such inability, which such party could not have avoided by the exercise of due diligence and care. 7.02 Approvals and consents. Approvals or consents required or permitted to be given under this Agreement shall be evidenced by an ordinance, resolution or order adopted by the governing body of the appropriate party or by a certificate executed by a person, firm or entity previously authorized to give such approval or consent on behalf of the patty. Approvals and consents shall be effective without regard to whether given before or after the time required for giving such approvals or consents. 7.03 Addresses and notice. Any notice to be given under this Agreement shall be given in writing, addressed to the party to be notified as set forth below, and may be given either by depositing the notice in the United States mail postage prepaid, registered or certified mail, with return receipt requested; by messenger delivery; or by telecopy. Notice deposited by mail shall be effective three days after posting. Notice given in any other manner shall be effective upon receipt by the party to be notified. For purposes of notice, the addresses of the parties shall be as follows: If to the City, to: City Manager City of Pearland 3519 Liberty Dr. Pearland, Texas 77581 Fax: (281) 652-1708 If to the Developer, to: Friendswood Development Company 681 Greens Parkway, Suite 220 Houston, Texas 77067 Attention: Michael W. Johnson Fax: (281) 582-5704 With a copy to: Allen Boone Humphries LLP Phoenix Tower 3200 Southwest Freeway, Suite 2600 Houston, Texas 77027 Attention: Katie Carner Fax: (713) 860-6682 DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 11 The parties shall have the right from time to time to change the respective addresses by giving at least 15 days’ written notice of such change to the other party. 7.04 Assignability; successors and assigns. All covenants and agreements contained by or on behalf of a party in this Agreement shall bind its successors and assigns and shall inure to the benefit of the other patties, their successors and assigns. The parties may assign their rights and obligations under this Agreement or any interest herein, only with the prior written consent of the other party, and any assignment without such prior written consent, including an assignment by operation of law, is void and of no effect; provided that, the Developer may make an assignment to a successor developer of the Land if such assignee specifically assumes all of the obligations of the Developer hereunder or may make a collateral assignment in favor of a lender without consent. This Section shall not be construed to prevent the Developer from selling lots, parcels or other po1tions of the Land in the normal course of business. If such assignment of the obligations by the Developer hereunder is effective, the Developer shall be deemed released from such obligations. If any assignment of the obligations by the Developer hereunder is deemed ineffective or invalid, the Developer shall remain liable hereunder. 7.05 No additional waiver implied. The failure of either party to insist upon performance of any provision of this Agreement shall not be construed as a waiver of the future performance of such provision by the other party. 7.06 Reservation of rights. All rights, powers, privileges and authority of the parties hereto not restricted or affected by the express terms and provisions hereof are reserved by the parties and, from time to time, may be exercised and enforced by the parties. 7.07 Parties in interest. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third parties. 7.08 Merger. This Agreement embodies the entire understanding between the parties and there are no representations, warranties, or agreements between the parties covering the subject matter of this Agreement. 7.09 Modification; exhibit. This Agreement shall be subject to change or modification only with the mutual written consent of the City and the Developer. The exhibits attached to this Agreement are incorporated by this reference for all purposes. 7.10 Captions. The captions of each section of this Agreement are inserted solely for convenience and shall never be given effect in construing the duties, obligations or liabilities of the parties hereto or any provisions hereof, or in ascertaining the intent of either party, with respect to the provisions hereof. 7.11 Interpretations. This Agreement and the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of this Agreement. DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF 12 7.12 Severability. If any provision of this Agreement or the application thereof to any person or circumstances is ever judicially declared invalid, such provision shall be deemed severed from this Agreement and the remaining portions of this Agreement shall remain in effect. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies, each of equal dignity, as of the date first given above. [SIGNATURE PAGE FOLLOWS] DocuSign Envelope ID: 2D4A9885-800F-4684-8253-B54F4E8871CF DocuSign Envelope ID: 2D4A98B5-800E-4684-8253-B54F4E8871CF CIT)Q ZEARLAND, TEXAS By: ATTEST: ---DocuSIgnad by: • "' 00EC22637FFF17fi_,. Frances Aguilar, City Secretary APPROVED AS TO FORM: r DoeuSigned by. BY: c3C7 AV8013 r 40C Darrin M. Coker, City Attorney /Pr._ ---- FO38D+20C74642�... Trent Epperson, City Manager SAVANNAH DEVELOPMENT, LTD., a Texas limited partnership By: U.S. Home, LLC, a G - aware limited liability company, it eneral Partner By: ATTEST: By: Rat IJ24J1 Kate Davis, Authorized Signator M. ael Johnson, Vice President