R97-31 05-19-97RESOLUTION NO. R97-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING AND APPROVING A DEVELOPMENT AGREEMENT
BETWEEN THE CITY OF PEARLAND AND U. S. HOME CORPORATION TO
ESTABLISH CERTAIN COMMITMENTS IMPOSED AND MADE IN
CONNECTION WITH THE DEVELOPMENT OF THE COUNTRYPLACE NORTH
PROPERTY AND THE EXTENSION OF McHARD ROAD.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Development Agreement by and between the City of
Pearland and U. S. Home Corporation relating to the development of the Countryplace
North property and the extension of McHard Road, a copy of which is attached hereto
as Attachment "A" and made a part hereof for all purposes, is hereby authorized and
approved.
Section 2. That the City Manager is hereby authorized to execute and the
City Secretary to attest the original and counterparts of the attached Agreement for
and on behalf of the City of Pearland.
PASSED, APPROVED and ADOPTED this the/¢~//day of 4~/,.~ ,
A.D., 1997. ,_.~~.~.~
TOM REID
MAYOR
ATTEST:
SECRETARY c/
APPR/~ED AS TO FORM:
McHARD ROAD DEVELOPMENT AGREEMENT
AN AGREEMENT BETWEEN THE
CITY OF PEARLAND, TEXAS
AND U.S. HOME CORPORATION
THE STATE OF TEXAS
COUNTY OF BRAZORIA
This McHard Road Development Agreement (the "Agreement") is
made and entered into as of the date set out below by and between
the CITY OF PEARLAND, TEXAS (the "City"), a municipal corporation
in Brazoria County, Texas, acting by and through its governing
body, the City Council of Pearland, Texas, and U.S. HOME
CORPORATION, a Delaware corporation (the "Developer").
RECITALS
The Developer owns approximately 268 acres of land within the
extra-territorial jurisdiction of the City in Brazoria County,
Texas described in Exhibit "A" attached hereto and made a part
hereof for all purposes (hereinafter referred to as the
"Countryplace North Property").
The City is a home rule city with all powers except those
specifically limited by the Constitution and laws of the State of
Texas.
Developer intends to develop the Countryplace North Property
in phases as a single family residential master planned community.
The southern boundary of the Countryplace North Property is
defined by and is adjacent to McHard Road, a four-laned esplanaded
boulevard road which runs in an east/west direction from Highway
RLR\103098 . i\DEVELOPMENT. AGR\ 2301 . 35
288 to its present point of termination at Countryplace Boulevard,
an existing road which is the entry road into the Developer's
Countryplace project which is south of McHard Road.
The purpose of this Agreement is to provide for the
construction of an extension of McHard Road from its present
termination point at Countryplace Boulevard in an easterly
direction to the western boundary of a Brazoria County drainage
ditch which runs in a north/south direction and is adjacent to the
eastern boundary of the Countryplace North Property.
It is the intent of this Agreement to establish certain
commitments imposed and made in connection with the development of
the Countryplace North Property and such extension of McHard Road.
NOW, THEREFORE, for and in consideration of the mutual
agreements, covenants, and conditions contained herein, and other
good and valuable consideration, the City and the Developer agree
as follows:
Section 1. Defined Terms. Unless the context requires
otherwise, and in addition to the terms defined above, the
following terms and phrases used in this Agreement shall have the
meanings set out below:
"City" means the City of Pearland, Texas, a municipal
corporation situated in Brazoria County, Texas, acting by and
through its governing body, the City Council of Pearland, Texas.
"City Code" means the Code of Ordinances of the City of
Pearland, Texas.
RLR\103098. l\DEVELOPMENT.AGR\230t. 35 2
"City Council" means the City Council of the City of Pearland,
Texas or any successor governing body.
"City Manager" means the City Manager of the City of Pearland,
Texas.
"Developer" means U.S. Home Corporation, a Delaware
corporation, its successors and assigns.
"Party" or "Parties" means a party or the parties to this
Agreement, being the City and the Developer.
Section 2. Dedication of Right-of-Way. Immediately after the
execution of this Agreement, the Developer shall proceed to
dedicate to Brazoria County an easement and the right of way for
the extension of McHard Road as a four-lane boulevard road from
Countryplace Boulevard to the western boundary of the existing
drainage ditch which runs along the eastern boundary of the
Countryplace North Property (the "McHard Road Extension"). The
right of way for the McHard Road Extension shall be of varying
widths up to 180 feet as indicated on Developer's land plan
attached hereto as Exhibit "A".
Section 3. Approval of Plats. Immediately after the
execution of this Agreement and upon application by the Developer,
the City shall give final approval of the plat for the development
of an approximately 31.3 acre portion of the Countryplace North
Property as The Lakes of Countryplace, Section One subdivision
("Section One"). Thereafter, from time to time as portions of the
Countryplace North Property are developed or proposed for
development, the City shall, as long as Developer has met the
RLR\ 103098 . 1\DEVELOPMENT. AGR\ 2301 . 35 3
requirements of the City's subdivision ordinance and has performed
its obligations under this Agreement and is not in default
hereunder, approve the plats for each proposed subdivision thereof
without requiring the immediate construction of the McHard Road
Extension; provided such plats shall in all other respect be
acceptable to and comply with the City's requirements.
Section 4. Construction of North Lanes. The Developer shall,
at its sole cost and expense, construct the northern two (2) lanes
of the McHard Road Extension in accordance with plans approved by
the City, Brazoria County and all other governmental authorities
with jurisdiction over such project. Such road construction
project shall be commenced by Developer on or before the earlier of
(i) the date on which the Developer commences construction of the
streets or utilities to serve the next subdivided portion of the
Countryplace North Property after Section One (such next
subdivision being hereinafter referred to as "Section 2"), or (ii)
three (3) years after the date of this Agreement. The construction
of the northern two (2) lanes of the McHard Road Extension once
commenced shall diligently and continuously be pursued to
completion by Developer in a timely manner.
Section 5. Emergency Access for Section One. The Developer
anticipates that Section 2 will be configured so that a street to
be constructed within Section One will be extended through Section
2 and will connect with the McHard Road Extension near the south-
eastern corner of the Countryplace North Property and provide an
emergency access for each of such subdivisions. In the event
RLR\103098. l\DEVELOPMENT.AGR\2301.35 4
Developer has not completed or is not proceeding with the
development of Section 2 by the date which is three (3) years after
the date of this Agreement, the Developer agrees to construct a
temporary road over the Countryplace North Property which will
provide a secondary emergency access and connect Section One to the
McHard Road Extension near the eastern end thereof.
Section 6. Construction of South Lanes. The City and the
Developer have agreed that the City shall be responsible for
constructing the southern two lanes of the McHard Road Extension,
but that the Developer shall contribute to the cost thereof as
hereinafter specified. The amount to be contributed by the
Developer for the cost of the southern two lanes of the McHard Road
Extension shall be equal to the cost of the north two lanes, as
determined by the contract awarded by the Developer for such work
(the "Contribution Amount"). Upon the completion of the north two
lanes of the McHard Road Extension, the Developer shall provide the
City with a copy of the construction contract for such project and
the final pay request submitted by the contractor and approved by
the Developer's project engineer to confirm the Contribution
Amount. The Contribution Amount shall be paid in installments by
the Developer to the City as each subdivision of the Countryplace
North Property after Section 2 is platted, with payment being made
in proportion to the acreage platted in each such subdivision. The
Countryplace North Property, exclusive of Section One and Section
2 as presently planned, contains approximately 217 acres. Thus,
for example, if the first platted subdivision after Section 2
RLR\103098.1\DEVELOPMENT. AGR\2301.35 5
contains 43 acres, 19.8% of the Contribution Amount would be
payable by the Developer to the City with the filing of the plat
for such subdivision (43 + 217 = 19.8%). The foregoing calculation
would be appropriately adjusted if the acreage within proposed
Section 2 changes. Notwithstanding the foregoing to the contrary,
any unpaid portion of the Contribution Amount shall be paid by the
Developer to the City on the date which is six (6) years after the
date of this Agreement.
Section 7. Escrow of Contribution Amount. The City shall
deposit the Contribution Amount in one or more interest bearing
accounts at a bank or other financial institution selected by the
City and shall use such funds only for the purpose specified in
this Agreement. All interest earned on the funds contributed by
the Developer shall become a part of the fund for the construction
of the south two lanes of the McHard Road Extension. The City
shall have the authority to determine when to construct such
project, subject to the following provisions hereof, and shall be
solely responsible for completing such work and paying the amount,
if any, by which the costs exceed the Contribution Amount and
interest earned. If the cost of the south two lanes of the McHard
Road Extension is less than the Contribution Amount and interest
earned prior to the expenditure of the funds by the City for such
work, the excess or remaining funds shall be refunded to the
Developer by the City upon completion of the project. If the City
determines not to construct the south two lanes of the McHard Road
Extension or if the construction of such project is not commenced
RLR\ 10 3 0 9 8 . 1 \ DEVELOPMENT. AGR\ 2 3 01 . 3 5 6
by the City within one (1) year after payment of the final portion
of the Contribution Amount and diligently pursued to completion
thereafter, the interest earned on the Contribution Amount shall be
refunded to the Developer.
Section 8. Remedies. In the event of a material breach of
this Agreement by a Party hereto, the nondefaulting Party shall
have the right to any and all remedies available at law or in
equity.
Section 9. Assignment or Sale. Developer shall have the
right to assign its rights under this Agreement and to sell all or
any portion of the Countryplace North Property without the consent
of the City. However, a sale of the Countryplace North Property or
a portion thereof which has not been platted shall be subject to
the obligation to pay the Contribution Amount upon platting as set
forth in this Agreement and the terms of this Agreement shall be
binding upon a subsequent purchaser of the unplatted land.
Section 10. Miscellaneous Provisions.
A. Notice. The Parties contemplate that they will engage in
informal communications with respect to the subject matter of this
Agreement. However, any formal notices or other communications
("Notice") required to be given by one Party to another by this
Agreement shall be given in writing addressed to the Party to be
notified at the address set forth below for such Party, (i) by
delivering the same in person, (ii) by depositing the same in the
United States Mail, certified or registered, return receipt
requested, postage prepaid, addressed to the Party to be notified,
RLR\103098. i\DEVELOPMENT. AGR\ 2301.35 7
(iii) by depositing the same with Federal Express or another
nationally recognized courier service guaranteeing "next day
delivery," addressed to the Party to be notified, or (iv) by
sending the same by telefax with confirming copy sent by mail.
Notice deposited in the United States mail in the manner
hereinabove described shall be deemed effective from and after the
date of such deposit. Notice given in any other manner shall be
effective only if and when received by the Party to be notified.
For the purposes of notice, the addresses of the Parties, until
changed as provided below, shall be as follows:
1. Notices. All notices required or permitted
hereunder shall be in writing and shall be served on the
parties at the following address:
City:
With a copy to:
Developer:
With a copy to:
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581-5416
Attn: City Manager
Mr. Richard Burdine
Assistant City Manager
City of Pearland
3519 Liberty Drive
Pearland, Texas 77581-5416
U.S. Home Corporation
12012 Wickchester
Suite 150
Houston, Texas 77079
Attn: Paul Linter
Richard L. Rose
Coats, Rose, Yale, Holm,
Ryman & Lee, P.C.
800 First City Tower
1001 Fannin St.
Houston, Texas 77002
RLR\103098 . 1 \DEVELOPMENT. AGR\ 2301 . 35 8
The Parties shall have the right from time to time to change
their respective addresses, and each shall have the right to
specify as its address any other address within the United States
of America by giving at least five (5) days written notice to the
other Party. If any date or any period provided in this Agreement
ends on a Saturday, Sunday, or legal holiday, the applicable period
for calculating the notice shall be extended to the first business
day following such Saturday, Sunday or legal holiday.
B. Time. Time is of the essence in all things pertaining to
the performance of this Agreement.
C. Terminology. The captions in this Agreement are for
reference purposes only and shall not modify or affect this
Agreement in any manner whatsoever. Wherever required by the
context, any gender shall include any other gender, the singular
shall include the plural, and the plural shall include the
singular.
D. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Texas.
E. Venue. The parties hereto hereby consent that venue of
any action brought under this Agreement shall be in Brazoria
County, Texas.
F. ,Severability. In case any one or more of the provisions
contained in this Agreement shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect any other
Drovisions hereof, and this Agreement shall be construed as if such
invalid, illegal, or unenforceable provisions had never been
contained herein. Provided, however, in the event such provision
is of a material nature another provision with as nearly the same
tenor, effect and reading, but which is valid, legal and
enforceable shall be immediately and automatically added hereto so
that no such invalidity, illegality or unenforceability shall
result in a materially adverse change in the benefits bargained for
by any of the parties hereto.
G. Construction. The Parties acknowledge that each Party
and its counsel have reviewed and revised this Agreement and that
the normal rule of construction to the effect that any ambiguities
are to be resolved against the drafting party shall not be employed
in the interpretation of this Agreement or any amendments or
exhibits hereto.
H. Entire Agreement. This Agreement contains the entire
agreement between the Parties and no oral statements or prior
written matter not specifically incorporated herein shall be of any
force or effect. No variation, modification or changes thereof
shall be binding on either Party hereto unless set forth in a
written document executed by such Parties or a duly authorized
agent, officer or representative thereof.
I. Waiver. Any failure by a Party hereto to insist upon
strict performance by the other Party of any material provision of
this Agreement shall not be deemed a waiver thereof or of any other
provision hereof, and such Party shall have the right of any time
thereafter to insist upon strict performance of any and all of the
Drovisions of this Agreement.
RLR\103098. i\DEVELOPMENT. A~R\2301.35 1 0
Agreement this 20thday of
J. Reservation of Rights. To the extent not inconsistent
with this Agreement, each Party reserves all rights, privileges,
and immunities under applicable laws.
K. Further Documents. The Parties agree that at any time
after execution of this Agreement, they will, upon request of
another Party, execute and deliver such further documents and do
such further acts and things as the other Party may reasonably
request in order to effectuate the terms of this Agreement.
L. Authority for Execution. The City hereby certifies,
represents, and warrants that the execution of this Agreement is
duly authorized and adopted in conformity with the City Charter and
City Code. The Developer hereby certifies, represents, and
warrants that the execution of this Agreement is duly authorized
and adopted in conformity with the articles of incorporation and
bylaws of such entity.
IN WITNESS WHEREOF, the undersigned Parties have executed this
May , 1997.
ATTEST:
Its: Pau' Grohman, City Manager
DEVELOPER
a ielaware ~.rp~,~
L
RLR\103098. l\DEVELOPMENT.AGR\2301.35 1 i
THE STATE OF TEXAS
COUNTY OF
~ of
This instrument was~cknQw~ledged before )~,e, on the C/ day
, 1997 by /'/~7~/~ ~/~/~/7 , ~//~ ~~of the
Cit~f Pearland, on behalf o~said city. ~ 7~
Name ~inted or typed
My co~ission expires:
THE STATE OF TEXAS
COUNTY OF HARRIS
.~,his instrument was acknowledged b~fore me on
U.S. Home Corporation, a Delaware corporation, on
corporation.
~.e '~-t'I day of
behalf of said
(SEAL)
,.~ ~.~.;~;.. , ~ , ~ P for
,', ('('%~%).:~ Notary?ubllc. State of Texas ~th~ State of Texas
~"~~~~~Name printed or typed
My co~isslon expires:
RLR\103098. l\DEVELOPMENT.AGR\2301.35 12
,/