HomeMy WebLinkAboutR2026-073 20260427RESOLUTION NO. R2026-73
A Resolution of the City Council of the City of Pearland, Texas, authorizing a
Letter Finance Agreement between the City and the Lower Kirby Pearland
Management District associated with the Lower Kirby Hillwood Development
Project.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That a certain Reimbursement Agreement by and between the City of
Pearland and the Pearland Economic Development Corporation was approved on February 23,
2026.
Section 2. That certain Letter Finance Agreement with the Lower Kirby Pearland
Management District, a copy of which is attached hereto as Exhibit “A” and made a part hereof for
all purposes, is hereby approved.
Section 3. That the City Manager or his designee is hereby authorized to execute and
the City Secretary to attest a Letter Finance Agreement associated with the Lower Kirby Hillwood
Development Project.
PASSED, APPROVED and ADOPTED this the 27th day of April, A.D., 2026.
________________________________
J.KEVIN COLE
MAYOR
ATTEST:
________________________________
FRANCES AGUILAR, TRMC, MMC
CITY SECRETARY
APPROVED AS TO FORM:
________________________________
LAWRENCE G. PROVINS
CITY ATTORNEY
Docusign Envelope ID: E330D088-2E42-86F2-80AB-AEAA064270D3
LOWER KIRBY PEARLAND MANAGEMENT DISTRICT
c/o Allen Boone Humphries Robinson LLP
3200 Southwest Freeway, Suite 2600
Houston, Texas 77027
April 15, 2026
Mr. Trent Epperson
City Manager
City of Pearland, Texas
3519 Liberty Drive
Pearland, TX 77581
Re: Financing of design, construction and land acquisition
Dear Mr. Epperson:
Lower Kirby Pearland Management District (the "District") and the City of
Pearland, Texas (the "City") entered into a Financing Agreement (the "Agreement") dated
March 10, 2014, to provide for the financing and construction of facilities to serve land
within the District.
The District and the City have determined to proceed with the design and
construction of those water, sanitary sewer, drainage, detention and road facilities
identified on Exhibit A attached hereto (the "Facilities"). The District and the City have also
determined to proceed with the acquisition of land necessary for regional detention
("Regional Detention Land") and for the construction of the Facilities ("Unrelated Tracts")
identified on Exhibit A attached hereto (collectively, the "Land").
The District has entered into a Development Financing Agreement with Industrial
VI Enterprises, LLC (the "Developer") for the design, construction and financing of a
portion of the costs of the Facilities. The City has entered into a Development Agreement
with the Developer regarding the Facilities and the Land.
The estimated costs to be incurred by the City for the Land are 55,700,000. The
estimated costs to be incurred by the City for the Facilities are $8,300,000 for the Phase 1
Roadway and Utility Improvements and $3,200,000 for the Phase 2 Roadway and Utility
Improvements.
The District agrees to reimburse the City for the costs of the Facilities, to the extent
such amounts were paid by the City to the Developer. The District's obligation to
reimburse the Developer and the City for the Facilities and the Land shall be subject to the
Priority of Reimbursement set forth on Exhibit B attached hereto.
[EXECUTION PAGE FOLLOWS]
4925-7631-0689 v.1
This letter financing agreement was duly authorized at a meeting of the Board of
Directors of the District held on the 15th day of April, 2026.
Very truly yours,
LOWER KIRBY PEARLAND MANAGEMENT
DISTRICT
By:
Pres i ent, Board of Directors
AGREED TO AND ACCEPTED this A c11-1'- day of pr, I , 2026.
City of Pearland, Texas
B
ty Manager
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ATTEST:
FRf
CIT
NOES AGUILAR, TI MC, MMC
SECRETARY
EXHIBIT A
THE FACILITIES
REGIONAL DETENTION LAND
UNRELATED TRACTS
Regional Detention Facilities (no reimbursement to the City)
1. East Pond 2 and Conveyance 2 Diversion to Ultimate
2. Conveyance 2 and Conveyance 3 to Ultimate
3. Central Pond 2
Roadway and Utility Improvements
Phase 1 Roadway and Utility Improvements
1. Del Pappa Road from Beltway 8 to East-West Road
2. East-West Road from Kingsley/Almeda School Road to Hooper Road
Phase 2 Roadway and Utility Improvements
1. North Spectrum/Riley from Hooper Road to Conveyance 3
Regional Detention Land
Approximately 79.11 acres of land, consisting of Central Pond 2, Conveyance
Channel 2, Conveyance Channel 2 Diversion, Conveyance Channel 3, West Pond 2
expansion area, and North Pond 2, as further depicted on Attachment 1
Unrelated Tracts
Approximately 4.42 acres of land necessary for the construction of Phase 1 Roadway
and Utility Improvements, and Phase 2 Roadway and Utility Improvements as further
depicted on Attachment 2
4925-7631-0689 v.1
Attachment 1
Regional Detention Land
Attachment 2
Unrelated Tracts
Project Eagle/Hillwood Unrelated Tracts ROW Acquisition
for Phase 1 & Phase 2 Road and Utility Improvements
Parcel
Number
Property Owner
ROW AC
WSE AC
Total AC
1
GTP
0.09
0.04
0.13
2
Arbor Care
0.15
0.08
0.23
3
Heatgen
0.15
0.17
0.32
4
Harris County
0.04
0.04
0.08
5
Wettcom
0.74
0.39
1.13
6
Adkins
0.40
0.10
0.50
7
W. Utlrich
0.80
0.25
1.05
8
D. Utlrich
0.02
0.02
9
Berrios
0.38
0.08
0.46
10
Berrios (Dickinson)
0.42
0.08
0.50
Total AC
3.17
1.24
4.42
EXHIBIT B
PRIORITY OF REIMBURSEMENT
BETWEEN DEVELOPER AND CITY OF PEARLAND
The District's reimbursement of the Developer and the City for eligible costs associated
with the Facilities and Regional Detention Land are subject to the District's Reimbursement
Policy, and will occur in the following order of priority as among the Developer and the
City:
First, to the Developer for the Master Drainage Plan update and the following Regional
Detention Facilities:
East Pond 2, and Conveyance 2 Diversion to Ultimate.
Second, to the City for Regional Detention Land and Unrelated Tracts.
Third, to the Developer for the following Regional Detention Facilities:
Conveyance 2 and Conveyance 3 to Ultimate, Central Pond 2, and any other
facilities approved by the District.
Fourth, to the Developer for Phase 1 Roadway and Utility Improvements that are financed
by the Developer, but only to the extent Developer has not been reimbursed by the City for
such costs.
Fifth, to the Developer for Phase 2 Roadway and Utility Improvements that are financed by
the Developer, but only to the extent Developer has not been reimbursed by the City for
such costs.
Sixth, to the City for Phase 1 Roadway and Utility Improvements that are financed by the
City in an amount not to exceed the lesser of $8,300,000 or 51% of the total cost of such
improvements (exclusive of interest as permitted by the rules of the TCEQ).
Notwithstanding the priorities set forth above, the District, in its sole discretion, may
reimburse the City for Phase 1 Roadway and Utility Improvements prior to reimbursing
the Developer for Phase 2 Roadway and Utility Improvements under Priority Fifth if: (1)
there are no outstanding reimbursements owed to the Developer or the City for items
under Priority First through Fourth above, and (2) a contract has not been awarded for the
construction of the Phase 2 Roadway and Utility Improvements on the date the District's
Engineer presents a summary of costs to the Board of Directors of the District for the
issuance of bonds that includes reimbursement to the City for Phase 1 Roadway and Utility
Improvements. The District agrees to give the Developer notice of its intention to
reimburse the City under Priority Sixth no later than ten (10) days prior to the summary of
costs being presented to the Board of Directors.
Seventh, to the City for Phase 2 Roadway and Utility Improvements that are financed by
the City in an amount not to exceed the lesser of $3,200,000 or 50% of the total cost of such
improvements (exclusive of interest as permitted by the rules of the TCEQ).
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