R2003-0159 10-27-03 RESOLUTION NO. R2003-159
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A PAYMENT IN LIEU OF TAXES AGREEMENT WITH MHI
PARTNERSHIP, LTD.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Payment in Lieu of Taxes Agreement by and between the
City of Pearland and MHI Partnership, Ltd., 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 a Payment in Lieu of Taxes Agreement with MHI
Partnership, Ltd.
PASSED, APPROVED and ADOPTED thisthe 27th dayof
A.D., 2003.
ATTEST:
APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
October .,
TOM REID
MAYOR
Exhibit "A"
Resolution R2003-159
Payment in Lieu of Taxes Aqreement
This Payment in Lieu of Texas Agreement ("Agreement") is made and entered
into effective as of October' 27 , 20 03, by and between the City of
Pearland, Texas, a municipal corporation and home-rule city of the State of Texas
("City"), and MHI Partnership, Ltd., a Texas Limited Partnership ("MHI").
Recitals
Whereas, MHI owns an approximate 17 acre tract of land located within the boundaries
of the City; and
Whereas, MHI has petitioned the City, requesting disannexation of the property, for the
purpose of including it within the boundaries of Brazoria County Municipal Utility District
No. 16; and
Whereas, the City in return for its agreement to disannex the property, desires to
negotiate an annual "Payment in Lieu of Taxes Agreement" to offset the revenue lost to
the City through a reduction in the property tax that would otherwise be received.
Now, Therefore, the City and MHI hereby agree as follows:
Section 1. City agrees to initiate the disannexation procedure for the tract of land
described in Exhibit "A", attached hereto and incorporated for all purposes. Once
disannexed, the boundaries of the City will be adjusted accordingly.
Section 2. For a period of two (2) years from the date of execution of this Agreement,
MHI agrees to make a "Payment in Lieu of Taxes", to the City, that is equal to one-
fourth (1/4) the amount of taxes the City would have received if the property were in the
City. Said amount shall be calculated by multiplying the then current assessed value of
the property, as determined by the Brazoria County Appraisal District annually, times
the City's property tax rate and dividing the product by four (4).
Section 3. Following the initial two (2) years of the Agreement, MHI agrees to make a
"Payment in Lieu of Taxes", to the City, that is equal to one-half (1/2) of the amount of
taxes the City would have received if the property were in the City. The method of
calculation of the payment shall be made in the same manner as the calculation formula
used in Section 2 of this Agreement, except the product derived from multiplying the
property value times the then current tax rate shall be divided by two (2).
Section 4. Any amount payable to the City as a "Payment in Lieu of Taxes" shall be
due on November 1st each year. If MHI fails to make payment to the City, in
accordance with this Agreement, the amounts due to the City shall accrue interest at a
rate of 1% per month.
Section 5. All obligations set forth in this Agreement are contingent upon the final
approval, by the City Council of the City of Pearland, of an ordinance disannexing the
property described in Exhibit "A".
Section 6. This agreement may only be amended, modified, or supplemented by
written agreement and signed by all of parties.
Section 7. No assignment by a party hereto of any rights under or interests in the
Agreement will be binding on another party hereto until written notice of assignment is
given to such other party.
Section 8. Whenever possible, each provision of the 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.
Section 9. This Agreement shall be construed and enforced in accordance with and
governed by the laws of the State of Texas.
Section10. This Agreement and all obligations created hereunder shall be
performable in Brazoria County, Texas.
Section 11. City Resolution No. R2003- ].59 is incorporated herein and made a part of
this Agreement for all purposes.
Section 12. All conditions and covenants of this Agreement are hereby declared to be
covenants running with the land and shall be fully binding upon all persons acquiring
any interest in the property described herein, whether by descent, demise, purchase,
gift or otherwise.
IN WITNESS WHEREOF, the parties hereto have each caused this Agreement
to be executed by their duly authorized officers and their corporate seals to be hereunto
affixed and attested as of the date first above written.
EXECUTED as of the date first written above.
CITY OF PEARLAND, TEXAS
City Manager
ATTEST:
Bye__
MHI PARTNERSHIP, LTD.,
a Texas limited partnership
By:
Its:
McGuyer Homebuilders, Inc.,
a Texas corporation
Sole General Partner
Title
By:
Michael K. Love, President
29.99 Acres
STATE OF TEXAS §
COUNTY OF BRAZORIA §
Exhibit "A"
H.T. & B.R.R. Company Survey
Abstract No. 505
A METES AND BOUNDS description of a 29.99 acre tract (1,306,212 square feet, square
footage based on the mathematical closure of the courses and distances described herein) of
land located in the H.T. & B.R.R. Company Survey, Abstract No. 505, Brazoria County, Texas.
Said 29.99 acre tract of land being more particularly described as follows:
BEGINNING at a point marking the southeast corner of the herein described tract, said point
being located at the intersection of the north right-of-way line of FM 518 with the west right-
of-way line of County Road 108;
THENCE, North 89°59'00" West, 2067.06 feet along the north right-of-way line of said FM
518 to a point for corner, said point being located at the intersection of said north right-of-way
line of FM 518 with the east right-of-way line of County Road 561;
THENCE, North 00010'58" West, 950.01 feet along said east right-of-way line of County
Road 561 to a point for corner;
THENCE, South 89059'00" East, 606.70 feet leaving said east right-of-way line of County
Road 561 to a point for corner;
THENCE, South 00°01 '00" West, 450.00 feet to a point for corner;
THENCE, South 89 o 59'00" East, 1462.00 feet to a point for corner, said point being located
in the west right-of-way line of County Road 108;
THENCE, South 00010'27" East, 500.00 feet along said west right-of-way line of County
Road 108 to the POINT OF BEGINNING, CONTAINING 29.99 acres of land in Brazoria County,
Texas.
SUI:~,'~JDW~M&B~2999
McGUYER
HOMEBUILDERS, INC.
AUSTIN • DALLAS • HOUSTON • SAN ANTONIO
LAND DEPARTMENT
TRANSMITTAL COVER SHEET
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THE FOLLOWING ARE:
•
As per your request •
)L For your use
❑ As per our conversation 0 For your comments
❑ For your review and approval For your files
REMARKS:
FROM: /774 / e.Ln
Keith F. eler
MHI Land Department
PIONEER
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