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R98-79 12-21-98 No ActionPASSED - NO ACTION TAKEN 12-21-98 RESOLUTION NO. R98-79 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, REPEALING RESOLUTION NO. R98-78 AND AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO INTERLOCAL AGREEMENTS WITH BRAZORIA COUNTY, FORT BEND COUNTY, BRAZORIA DRAINAGE DISTRICT NO. 4, FORT BEND INDEPENDENT SCHOOL DISTRICT, ALVIN INDEPENDENT SCHOOL DISTRICT, AND ALVIN COMMUNITY COLLEGE, TO COOPERATE IN ESTABLISHING CONDITIONS FOR PARTICIPATION IN TAX INCREMENT REINVESTMENT ZONE NO. 2 WITHIN THE CORPORATE CITY LIMITS OF PEARLAND. BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section1. That Resolution No. R98-75 is hereby repealed. Section 2. That certain interlocal agreements by and between the City of Pearland and Brazoria County, Fort Bend County, Brazoria Drainage District No. 4, Fort Bend Independent School District, Alvin Independent School District, and Alvin Community College, copies of which are attached hereto as Exhibits "A", "B", "C", "D", "E", and "F", and made a part hereof for all purposes, are hereby authorized and approved. Section 3. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest the originals of the attached agreements for and on behalf of the City of Pearland, to cooperate with the aforementioned entities in establishing conditions for participation in Tax Increment Reinvestment Zone No. 2 within the corporate city limits of Pearland. PASSED, APPROVED and ^DOPTED th s the day of , A.D., 1998. TOM REID MAYOR RESOLUTION NO. R98-79 ATTEST: YOUNG LORFING CITY SECRETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY 2 Exhibit "A" THE STATE OF TEXAS COUNTIES OF FORT BEND, BRAZORIA AND HARRIS INTERLOCAL AGREEMENT I. PARTIES A. Address THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the CITY OF PEARLAND, TEXAS ("City"), a municipal corporation and home-rule city of the ~tate of Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and through its goveming body, the City Council; BRAZORIA COUNTY ("County"), located atThe Brazoria County Court House, 111 Locust, Angleton, Texas 77515 and the REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and Section 311.013 of the Texas Tax Code. The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other parties, are as follows: city City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 County Brazoria County Attention County Judge Brazoria County Court House 111 Locust ^ngleton, Texas 77515 The Reinvestment Zone The Reinvestment Zone Attention President c/o City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 F:\TL 1532~S HADCRK~ZONE~NTERLO I .BRA December 16, 1998, 3:30 p.ra. B. Index The City, the County and the Reinvestment Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: Section Description Page I. Parties 1 II. Definitions 5 III. Background . 6 IV. Obligations of the County 6 V. Obligations of City and the Reinvestment Zone 8 VI. Term and Termination 9 VII. Miscellaneous 9 Exhibit "A" -- City of Pearland Ordinance No. C. Parts Incorporated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. F :\TL I 5 3 2~S HADC RK~ZONE-'~NTERLO I .BRA December 16, 1998, 3:30 p.m. -~'- IN WITNESS HEREOF, the City, the County and the Reinvestment Zone have made and executed this Agreement in multiple copies, each of which is an original. CITY OF PEARLAND, TEXAS, a home rule municipality BRAZORIA COUNTY City Mayor Date County Judge Date ATTEST: Commissioner ~ Date City Secretary Date (SEAL) Commissioner Date COUNTERSIGNED: Commissioner Date City Manager Date Commissioner Date APPROVED AS TO FORM: APPROVED AS TO FORM: City Attorney Date Attorney Date F:\TL 1532~SHADCRK~ZONE'LINTERLO 1 .BR.A -3- December 16, 1998, 3:30 p.m. REINVESTMENT ZONE NUMBER TVVO, CITY OF PEARLAND, TEXAS By: Date Title: Chairman, Board of Directors ATTEST/SEAL: By: Date Title: Secretary, Board of Directors [The remainder of this page is intentionally left blank.] F:\TL 1532~ HADCP,.K.~ZONE~ITERLO I .BRA December 16, 1998, 3:30 p.m. II. DEFINITIONS As used in this Agreement, the following terms shall have the meanings set out below: "Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of operating the Reinv~stment Zone and the imputed administrative costs associated with the Reinvestment Zone incurred by the City in connection with the implementation of the project plan. "Agreement" means this agreement between the City, the County and the Reinvestment Zone. "Agreement Term" is defined in Section VI. "Captured Appraised Value" for a given tax year means the total appraised value of the real property in the Reinvestment Zone less the Tax Increment Base. "City" is defined in Section I of this Agreement and includes its successors and assigns. "Countersignature Date" means that date shown as the date countersigned by the City Manager on the signature page of this Agreement. "The County" is defined in Section I of this Agreement and includes its successors and assigns. "The County Tax Increment Participation" means the amount of the County tax levy on the Captured Appraised Value which the County agrees to contribute to the Reinvestment Zone pursuant to Subsections A and B of Section IV of this Agreement. "Project Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created by the City on , by Ordinance No. , attached as Exhibit "A," and includes its successors and assigns. _ 'q'ax Increment Base" means the market value of all real property located in the Reinvestment Zone for the 1998 tax year, as determined by the Brazoria County Central Appraisal District (excluding exemptions). F:\TL 1532~SHADCRK~ZONE~NTERLO I .BRA December 16, 1998, 3:30 p.m. -.-)- "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. Otherwise, the terms used herein shall have the meanings ascribed to them in ChaPter 311, Texas Tax Code, as applicable. III. BACKGROUND By Ordinance No. , adopted , the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone inthe Tax Increment Fund. The County desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. IV. OBLIGATIONS OF THE COUNTY A. Tax Increment Participation by the County For and in consideration of the agreements of the parties set forth herein, and subject to the remaining subsections of this section, the County agrees to participate in the Reinvestment Zone by contributing the below listed amounts of the tax increment produced in the Reinvestment Zone attributable to the County to the Tax Increment Fund dudng the term of this Agreement (the "County Tax Increment Participation"). (1) The amount in the years 1999 through 2008 is the amount of taxes collected by the County in each of such years at a County tax rate of $0.3575 per $100 valuation on the Captured Appraised Value. If the County tax rate is less than $0.3575 during such period, then the County Tax Increment Participation is the total amount of taxes collected by the County at the actual tax rate of the County on r the Captured Appraised Value. Taxes collected during such period by result of a County tax levy at a tax rate greater than $0.3575 shall be retained by the County. F:\TL 1532~I-IADCRK~ZONE~rNTEP,.LO I.BRA December 16, 1998, 3:30 p.m (2) The amount in years 2009 through 2018 is the amount of taXes collected by the County in each of such years at a rate of $0.268125 per $100 valuation on the Captured Appraised Value. If the County tax rate is less than $0.268125 for such year, then the County Tax Increment Participation in such year is the total amount of taxes collected by the County at the actual tax rate of the County on the Captured Appraised Value. Taxes collected by result of a County tax levy at a tax rate greater than $0.268125 shall be retained by the County. (3) The amount in years 2019 through 2028 is the amount of taxes collected by the County in each of such years at a rate of $0.178750 per $100 valuation on the Captured Appraised Value. If the County tax rate is less than $0.178750 for such year, then the County Tax Increment Participation in such year is the total amount of taxes collected by the County at the actual tax rate of the County on the Captured Appraised Value. Taxes collected by result of a County tax levy at a tax rate greater than $0.178750 shall be retained by the County. The County's Tax Increment Participation and obligation to participate in the Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment Zone in the amounts shown above. The County shall not be obligated to pay its County Tax Increment Participation from other County taxes or revenues or until the County Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the County Tax Increment Participation shall accrue as taxes representing the County tax increment are collected and payment shall be due on May 1 of each year. B. Expansion of the Investment Zone The obligation of the County to participate in the Reinvestment Zone is limited to the area described in Exhibit "A' attached hereto. The County's participation shall not extend to the tax increment on any additional property added to the Reinvestment Zone by the City unless the County approves the participation. F:\TL 1532\SI-IADCRK~ZONE~NTERLO i .BR.A December 16, 1998, 3:30 p.m. -/- C. Board of Directors As a participating taxing unit, the County shall have the right to appoint one (1) member on the Reinvestment Zone Board of Directors. Failure of the County to appoint a person to the Board of Directors of the Reinvestment Zone by March 1, 1999, shall be deemed a waiver of the County's right to make an appointment by a later date. V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE A. Copy of the Project Plan A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to the County before any such plan is finally approved by the Reinvestment Zone. B. Operation of Libraries The City and the Reinvestment Zone agree that a public library will not be constructed in the Reinvestment Zone, unless the County consents to the construction of such library. C. Disannexation Once Reinvestment Zone bonds have been sold, the City agrees that it will never disannex any property within the Reinvestment Zone. D. Responsibility for Reinvestment Zone Debt The City and the Reinvestment Zone agree that the County is not liable for the debt of the Reinvestment Zone. E. Development in Accordance with the Planned Unit Development The City agrees that all development within the Reinvestment Zone will be in accordance with the Planned Unit Development. The City will enforce the requirements of the Planned Unit Development on all development within the Reinvestment Zone. F:\TL 1532~SHADCRK~ZONE'~N'TERLO I .BRA O December 16, 1~98, 3:30 p.m. '~- VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the County Tax Increment Participation shall be for those taxes levied by the County in the year 1999 and the last payment by the County under this Agreement is for those taxes levied by the County in the year 2028. B. Early Termination The City shall not adopt an ordinance terminating the Reinvestment Zone eadier than the duration of the Zone established in Ordinance No. , without the prior consent of the County, provided that the Reinvestment Zone may otherwise terminate by operation of law. C. Disposition of Tax Increments Upon termination of the Reinvestment Zone, if all public improvements in the Project Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the Reinvestment Zone shall pay to the County all monies remaining in the Tax Increment Fund that are attributable to the County Tax Increment Participation. VII. MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either the County, the City or the Reinvestment Zone in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. In the event any term, covenant or condition shall be held invalid and affects in any manner the limitations on the County's contributions or participation, then this Agreement shall be void as to the F:\TL 1532XSHADCRKXZONEXINTERLO I .BRA Decembcr 16, 199B, 3:30 p.m. County and the County shall have no liability for any incremental or other payments as may otherwise be provided for in this Agreement. B. Entire Agreement This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. C. Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. D. Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. E. Non-Waiver Failure of any party hereto to insist on the stdct performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any dght or remedy occurring as a result of any future default or failure of performance. F:\TL 1532~SFLM)CRK~ZO~RLO I .BRA December 16, 1998, 3:30 p.m. - l U- F. Assignment No party shall assign this Agreement at law or otherwise without the pdor written consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or age~nt of the City or of any trustee, officer, agent or employee of the County. H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. December 16, 1998, 3:30 p.m. Exhibit "B" THE STATE OF TEXAS COUNTIES OF FORT BEND, BRAZORIA AND HARRIS AGREEMENT I. PARTIES A. Address THIS AGREEMENT ("Agreement") is made by and between the CITY OF PEARLAND, TEXAS ("City"), a municipal corporation and home-rule city of the State of Texas 'p~ncipally situated in the Counties of Fort Bend, Brazoria, and Hards, acting by and through its governing body, the City Council; FORT BEND COUNTY ("County"), located at 301 Jackson, Suite 719, Richmond, Texas 77469; and the REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Section 311.013 of the Texas Tax Code, which Section permits a taxing unit to enter into agreements to pay into the tax increment fund any of its tax increment produced from property located in a reinvestment zone. The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other parties, are as follows: City County City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Fort Bend County Attention County Judge 301 Jackson Street, Suite 719 Richmond, Texas 77469 The Reinvestment Zone Reinvestment Zone Number Two, City of Pearland, Texas Attention: Chairman c/o City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 F :\TL I $32~ HADCRK~Z ONE'~rI'ERLO2 .FBC December 16, 1998, 3:30 p.m. B. Index The City, the County and the.Reinvestment Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: Section/Description I. PARTIES Page 1 II. DEFINITIONS 5 III. BACKGROUND 6 IV. OBLIGATIONS OF THE COUNTY V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE VI. TERM AND TERMINATION 8 VII. MISCELLANEOUS 9 Exhibit "A" -- City of Pearland Ordinance No. C. Parts Incorporated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. F:kTL I $3 2~SHADCRK~ZO~ERLO2.FBC December 16, 1998, 3:30 p.m. IN WITNESS HEREOF, the City, the County and the Reinvestment Zone have made and executed this Agreement in multiple copies, each of which is an original. CITY OF PEARl_AND, TEXAS, a home rule municipality FORT BEND COUNTY City Mayor Date County Judge Date ATTEST: Commissioner Date City Secretary Date (SEAL) Commissioner Date COUNTERSIGNED: Commissioner Date City Manager Date Commissioner Date APPROVED AS TO FORM: APPROVED AS TO FORM: City Attorney Date Attorney Date F:\TL 1532~SHADCRK~ZONE~'qTERLO2.FBC December 16, 1998, 3:30 p.m. --.~ - REINVESTMENT ZONE NUMBER TVVO, CITY OF PEARLAND, TEXAS By: Date Title: Chairman, Board of Directors ATTEST/SEAL: By: Date Title: Secretary, Board of Directors [The remainder of this page is intentionally left blank.] F:\TL 1532~SHADCP. K~ZO~RLO2.FBC December 16, 1998, 3:30 p.m. II. DEFINITIONS As used in this Agreement, the following terms shall have the meanings set out below: "Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of operating the P, einvestment Zone and the imputed administrative costs associated with the Reinvestment Zone incurred by the City in connection with the implementation of the project plan. "Agreement" means this agreement between the City, the County and the Reinvestment Zone. "Agreement Term" is defined in Section VI. "Captured Appraised Value" means the captured appraised valqe of the Reinvestment Zone as defined by Chapter 311, Texas Tax Code. "City" is defined in Section I of this Agreement and includes its successors and assigns. "CounterSignature Date" means that date shown as the date counterSigned by the City Manager on the signature page of this Agreement. The "County" is defined in Section I of this Agreement and includes its successorS and assigns. The "County Tax Increment Participation" means the amount of the County tax levy on the Captured Appraised Value which the County agrees to contribute to the Reinvestment Zone purSuant to Subsections A and B of Section IV of this Agreement. "Project Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone adopted by the board of directorS of the Reinvestment Zone and approved by the City Council of the City. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created by the City on , by Ordinance No. , attached as Exhibit "A," and includes its successorS and assigns. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. F:\TL 1532~SHADCRK~ZONE~fERLO2.FBC December 16, 1998, 3:30 p.m. Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter 311, Texas Tax Code, as applicable. II1. BACKGROUND By Ordinance No. , adopted , the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. The County desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. The County received written notice from the City of the City's intent to establish the Reinvestment Zone. Such notice was received more than sixty (60) days before the public hearing on the creation of the Reinvestment Zone and conforms in all respects to the requests of {}311.003 of the Texas Tax Code. IV. OBLIGATIONS OF THE COUNTY A. Tax Increment Participation by the County For and in consideration of the agreements of the parties set forth herein, and subject to the remaining subsections of this section, the County agrees to participate in the Reinvestment Zone by contributing the below listed amounts of the tax increment produced in the Reinvestment Zone attributable to the County to the Tax Increment Fund during the term of this Agreement (the "County Tax Increment Participation"). (1) The amount in the years 1999 through 2008 is the amount of taxes collected by the County in each of such years at a County tax rate of $0.624100 per $100 valuation on the Captured Appraised Value. If the County tax rate is less than $0.624100 during such period, then the County Tax Increment Participation is the total amount of taxes collected by the County at the actual tax rate of the County on the Captured Appraised Value. Taxes collected during such period by result of a County tax levy at a tax rate greater than $0.624100 shall be retained by the County. F:\TL 15 3 2~SHADCRK~ZONE-~NTERLO2.FBC December 16, 1998, 3:30 p,m. -D- (2) The amount in years 2009 through 2018 is the amount of taxes collected by the County in each of such years at a rate of $0.468075 per $100 valuation on the Captured Appraised Value. If the County tax rate is less than $0,468075 for such year, then the County Tax Increment Participation in such year is the total amount of taxes collected by the County at the actual tax rate of the County on the Captured Appraised Value. Taxes collected by result of a County tax levy at a tax rate greater than $0.468075 shall be retained by the County. (3) The amount in years 2019 through 2028 is the amount of taxes collected by the County in each of such years at a rate of $0.312050 per $100 valuation on the Captured Appraised Value. If the County tax rate is less than $0.312050 for such year, then the County Tax Increment Participation in such year is the total amount of taxes collected by the County at the actual tax rate of the County on the Captured Appraised Value. Taxes collected by result of a County tax levy at a tax rate greater than $0.312050 shall be retained by the County. The County's Tax Increment Participation and obligation to participate in the Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment Zone in the amounts shown above. The County shall not be obligated to pay its County Tax Increment Participation from other County taxes or revenues or until the County Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the County Tax Increment Participation shall accrue as taxes representing the County tax increment are collected and payment shall be due on the first day of each calendar quarter. B. Expansion of the Investment Zone The obligation of the County to participate in the Reinvestment Zone is limited to the area described in Exhibit "A" attached hereto. The County's participation shall not extend to the tax increment on any additional property added to the Reinvestment Zone by the City unless the County approves the participation. F:\TL 1532~SHADCRK~ZONE~I'ERLo2.FBC December 16, 1c)98, 3:30 p.m. -7- C. Board of Directors As a participating taxing unit, the County shall have the right to appoint one (1) member on the Reinvestment Zone Board of Directors. Failure of the County to appoint a person to the Board of Directors of the Reinvestment Zone by Mamh 1, 1999, shall be deemed a waiver of the County's right to make an appointment by a later date. V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE ^ copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to the County before any such plan is finally approved by the Reinvestment Zone. VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the County Tax Increment Participation shall be for those taxes levied by the County in the year 1999 and the last payment by the County under this Agreement is for those taxes levied by the County in the year 2028. B. Early Termination The City shall not adopt an ordinance terminating the Reinvestment Zone earlier than the duration of the Zone established in Ordinance No. , without the prior consent of the County, provided that the Reinvestment Zone may otherwise terminate by operation of law. C. Disposition of Tax Increments Upon termination of the Reinvestment Zone, if all public improvements in the Project Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the Reinvestment Zone shall pay to the County all monies remaining in the Tax Increment Fund that are attributable to the County Tax Increment Participation. F:\TL 1532~SHADCRK~ZONE~INTERLO2.FBC - ~ - December 16, 1998, 3:30 p.m VII. MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either the County, the City or the Reinvestment Zone in their respective dghts and obligations contained in the valid terms, covenants or conditions hereof. In the event any term, covenant or condition shall be held invalid and affects in any manner the limitations on the County's contributions or participation, then this Agreement shall be 'void as to the County and the County shall have no liability for any incremental or other payments as may otherwise be provided for in this Agreement. B. Entire Agreement This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. C. Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. D. Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. F:\TL 1532~SHADCRK~ZONEkINTERLO2.FBC December 16, 1998, 3:30 p.m. E. Non-Waiver Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any dghts or remedies accruing hereunder upon default or failure of performance shall not be considered a Waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. F, Assignment No party shall assign this Agreement at law or otherwise without the prior written consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or agent of the City or of any trustee, officer, agent or employee of the County. H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. F:\TL 1532~SHADCRK~ZO~RLO2.FBC Decembe~ 16, 1998, 3:30 p.m. - ! L/- Exhibit "C" THE STATE OF TEXAS COUNTIES OF FORT BEND, BRAZORIA AND HARRIS INTERLOCAL AGREEMENT I. PARTIES A. Address. THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the CITY OF PEARLAND, TEXAS ("City"), a muniCipal corporation and home-rule city of the State of Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and~through its governing body, the City Council; BRAZORIA DRAINAGE DISTRICT NO. 4 (the "District"), located at 4805 W. Broadway, Pearland, Texas 77581; and the REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Chapter 791 of the Texas Govemment Code and Section 311.013 of the Texas Tax Code. The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other parties, are as follows: City The District City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Brazoria Drainage District No. 4 Attention: Director 4805 W. Broadway Pearland, Texas 77581 The Reinvestment Zone Reinvestment Zone Number Two, City of Pearland, Texas Attention: Chairman cio City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 City District Reinvestment Zone F:~TL 1532~S HADCRK~ZON E~INTE-BC2. DD4 December 16, 1998, 3:30 p.m. B. Index The City, the Distdct and the Reinvestment Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: Section Description Page I. Parties 1 II. Definitions 5 III. Background 6 IV. Obligations of the District 6 V. Obligations of City and the Reinvestment Zone 8 VI. Term and Termination 8 VII. Miscellaneous 9 Exhibit "A" -- City of Pearland Ordinance No. C. Parts Incorporated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. City District Reinvestment Zone F:\TL1532~S HADCRK~ON E~INTE-BC2.DD4 _~_ December 16, 199~, 3:30 p.m. IN WITNESS HEREOF, the City, the District and the Reinvestment Zone have made. and executed this Agreement in multiple copies, each of which is an original. CITY OF PEARLAND, TEXAS, a home rule municipality BRAZORIA DRAINAGE DISTRICT NO. 4 City Mayor Date Chairman, Board of Directors Date ATTEST: Secretary, Board of Directors Date City Secretary (SEAL) COUNTERSIGNED: Date Member, Board of Directors Date APPROVED AS TO FORM: City Manager Date Attorney Date APPROVED AS TO FORM: City Attorney Date F:kTL 1532kSHADCRK~ZONL~INTE-BC2. DD4 -3 ' REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS By: Date Title: Chairman, Board of Directors ATTEST/SEAL: By: Date Title: Secretary, Board of Directors [The remainder of this page is intentionally left blank.] F:WL 1532~SHADCRKkZONE\INTE-BC2.DD4 -4- II. DEFINITIONS As used in this Agreement, the following terms shall have the meanings set out below: "Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of operating the Reinvestment Zone and the imputed administrative costs associated with the Reinvestment Zone incurred by the City in connection with the implementation of the project plan. UAgreemen~' means this agreement between the City, the District and the Reinvestment Zone. UAgreement Term" is defined in Section VI. "Captured Appraised Value" means the captured appraised value of the Reinvestment Zone as defined by Chapter 3'1 '1, Texas Tax Code. "City" is defined in Section I of this Agreement and includes its successors and assigns. "Countersignature Date" means that date shown as the date countersigned by the City Manager on the signature page of this Agreement. "The Distdcff is defined in Section I of this Agreement and includes its successors and assigns. "The District Tax Increment Participation" means the amount of the District tax levy on the Captured Appraised Value which the District agrees to contribute to the Reinvestment Zone pursuant to Subsections A and B of Section IV of this Agreement. "Project Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created bY the City on , by Ordinance No. , attached as Exhibit "A," and includes its successors and assigns. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. City District Reinvestment Zone F ATL1532~SHADCRK~ZONE~INTE-BC2. DD4 --~- Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter.311, Texas Tax Code, as applicable. III. BACKGROUND By Ordinance No. , adopted , the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. The District desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. The Distdct received written notice from the City of the City's inte~nt to establish the Reinvestment Zone. Such notice was received more than sixty (60) days before the public hearing on the creation of the Reinvestment Zone and conforms in all respects to the requirements of §311.003 of the Texas Tax Code. IV. OBLIGATIONS OF THE DISTRICT A. Tax Increment Participation by the District For and in consideration of the agreements of the parties set forth herein, and subject to the remaining subsections of this section, the District agrees to participate in the Reinvestment Zone, contributing the below listed amounts of the tax increment produced in the Reinvestment Zone attributable to the District to the Tax Increment Fund during the term of this Agreement (the "District Tax Increment Participation") The amount to be contributed by the District is the amount of taxes collected by the District each year during the term'of this Agreement at a rate of $0.070720 per $100 valuation on the Captured City District Reinvestment Zone FATL1532~SHADCRK~ZONE\INTE.BC2.DD4 Appraised Value. If the District tax rate is less than $0.070720, then the District Tax Increment Participation is the total amount of taxes collected by the District at the actual tax rate of the District on the Captured Appraised Value. Taxes collected by result of a District tax levy at a tax rate greater than $0.070720 shall be retained by the District. The District's Tax Increment Participation and obligation to participate in the Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment Zone in the amount shown above. The District shall not be obligated to pay its District Tax Increment Participation from other District taxes or revenues or until the District Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the District Tax Increment Participation shall accrue as taxes representing the District tax increment are collected by the District and payment shall be due on the first day of each calendar quarter. The City and the Reinvestment Zone agree that no interest or penalty will be charged to the District. B. Expansion of the Investment Zone The obligation of the District to participate in the Reinvestment Zone is limited to the area described in Exhibit "A" attached hereto. The District's participation shall not extend to the tax increment on any additional property added to the Reinvestment Zone by the City unless the District approves the participation. C. Board of Directors The District will designate, by resolution, an individual to serve on the Reinvestment Zone Board of Directors. Provided that the individual so designated is eligible for service on the Reinvestment Zone Board of Directors, the City will appoint that individual as a member of the Reinvestment Zone Board of Directors. City District Reinvestment Zone F:~TL1532~SHADC RK~.ONE~INTE-BC2. DD4 -7- V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE A. Copy of Project Plan A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to the District before any such plan is finally approved. B. Approval of Drainage Plans The Reinvestment Zone and the City agree that all drainage facilities within the Reinvestment Zone shall be designed in accordance with the drainage standards of the District, provided however that the District may not require any drainage or detention facilities that conflict with the Planned Unit Development land plan. The Reinvestment Zone and the City agree that the District will review and approve all drainage plans for property within the Reinvestment Zone, even though such property is within the city limits of the City of Peadand, and such approval is not to be unreasonably withheld, conditioned or delayed. The City hereby delegates to the District the authority to approve all drainage easements within the boundaries of the Reinvestment Zone and to approve all drainage plans for property within the Reinvestment Zone. In addition, dudng construction the District shall have the reasonable right of access for inspection purposes. The District will have signature approval on the face of all subdivision plats within the Reinvestment Zone. The City agrees that it will amend its ordinances as necessary to implement the above. C. Maintenance of Drainage Improvements During the life of the Reinvestment Zone, the Reinvestment Zone and the City agree that all drainage facilities within the Reinvestment Zone shall not be maintained by the District. After the Reinvestment Zone terminates, the City shall not be responsible for maintenance of such facilities. VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the District Tax Increment Participation shall be for those taxes levied by the District in the year 1999 and the last payment by the District under this Agreement is for those taxes levied by the District in the year 2028. City District Reinvestment Zone F:~TL1532~SHADC RK~ZON E~INTE-BC2,DD4 -8- B. Early Termination The City shall not adopt an ordinance terminating the Reinvestment Zone eadier than the duration of the Zone established in Ordinance No. , without the pdor consent of the District, provided that the Reinvestment Zone may otherwise terminate by operation of law. C. Disposition of Tax Increments Upon termination of the Reinvestment Zone, if all public improvements in the Project Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the Reinvestment Zone shall pay to the District all monies remaining in the Tax Increment Fund that are attributable to the District Tax Increment Participation. VII. MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either the District, the City or the Reinvestment Zone in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. In the event any term, covenant or condition shall be held invalid and affects in any manner the limitations on the District's contributions or participation, then this Agreement shall be void as to the Distdct and the District shall have no liability for any incremental or other payments as may otherwise be provided for in this Agreement. B. Entire Agreement This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements,-assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. City District Reinvestment Zone F:tTL 1532~S HADCRIGZONE~INTE*BC2. DD4 C. Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. D. Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. E. Non-Waiver Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. F. Assignment No party shall assign this Agreement at law or otherwise without the prior wdtten consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. City District Reinvestment Zone F:~TL1532~SHADCRK3,ZONE~INTE-BC2,DD4 - ]. 0- G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or agent of the City or of any officer, agent or employee of the District. H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. City District Reinvestment Zone F:WL1532~.SHADCRIGZONE~INTE-BC2,DD4 - ] ], ' Exhibit "D" THE STATE OF TEXAS COUNTIES OF FORT BEND, BRAZORIA AND HARRIS INTERLOCAL AGREEMENT I. PARTIES A. Address THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the CITY OF PEARLAND, TEXAS ("City"), a municipal corporation and home-rule city of the ~tate of Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and through its governing body, the City Council; FORT BEND INDEPENDENT SCHOOL DISTRICT ("FBISD"), located at 16431 Lexington Boulevard, P. O. Box 1004, Sugar Land, Texas 77487; and the REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and Section 311.013 of the Texas Tax Code. The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other parties, are as follows: City FBISD City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Fort Bend Independent School District 16431 Lexington Boulevard P. O. Box 1004 Sugar Land, Texas 77487 The Reinvestment Zone Reinvestment Zone Number Two, City of Pearland, Texas Attention: Chairman cio City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 F:\TL 1532~SHADCRK'~ZO~OC.FB 1 December 16, 1998, 3:30 p.m. B. Index The City, FBISD and the Reinvestment Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: SectionlDescri_otion Page I. PARTIES 1 II. DEFINITIONS 5 III. BACKGROUND 6 IV. OBLIGATIONS OF FBISD 6 V. OBLIGATIONS OF CITYANDTHE REINVESTMENTZONE VI. TERM AND TERMINATION 8 VII. MISCELLANEOUS 8 Exhibit ,,A. _ City of Pearland Ordinance No. C. Parts Incorporated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. F:\TL 1532~SHADCRK~ZONE~VI'ERLOC.FBI _~_ December 16, 1998, 3:30 p.m. IN WITNESS HEREOF, the City, FBISD and the Reinvestment Zone have made and executed this Agreement in multiple copies, each of which is an original. CITY OF PEARl_AND, TEXAS, a home rule municipality FORT BEND INDEPENDENT SCHOOL DISTRICT City Mayor Date ATTEST: City Secretary Date (SEAL) COUNTERSIGNED: President, Board of Trustees Date Secretary, Board of Trustees Date Superintendent of Schools Date APPROVED AS TO FORM: City Manager Date APPROVED AS TO FORM: Attorney Date City Attorney Date F:\TL 1532~SHADC:RK~ZO~RLOC.FBI _~_ December 16, 1998, 3:30 p.m REINVESTMENT ZONE NUMBER TVVO, CITY OF PEARLAND, TEXAS By: Date Title: Chairman, Board of Directors ATTEST/SEAL: By: Date Title: Secretary, Board of Directors [The remainder of this page is intentionally left blank.] F:\TL 1532~SHADCR.K~ZONE~FFERLOC.FB I -4- December 16, 1998, 3:30 p.m. II. DEFINITIONS As used in this Agreement, the following terms shall have the meanings set out below: "Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of operating the Reinvestment Zone and the imputed administrative costs associated with the Reinvestment Zone incurred by the City in connection with the implementation of the project plan. "Agreement" means this agreement between the City, FBISD and the Reinvestment Zone. "Agreement Term" is defined in Section VI. "Captured Appraised Value" means the captured appraised value of the Reinvestment Zone aS defined by Chapter 311, Texas Tax Code. "City" is defined in Section I of this Agreement and includes its successors and assigns. "Countersignature Date" means that date shown as the date countersigned by the City Manager on the signature page of this Agreement. "FBISD" is defined in Section I of this Agreement and includes its successors and assigns. "FBISD Tax Increment Participation" means the amount of the FBISD tax levy on the Captured Appraised Value which FBISD agrees to contribute to the Reinvestment Zone pursuant to Subsections A and B of Section IV of this Agreement. "Project Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created by the City on , by Ordinance No. , attached as Exhibit "A," and includes its successOrs and assigns. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. F:\TL 1532~SHADCRK~ZONEL-'~rYERLOC.FBI December 16, 1998, 3:30 p.m. -..,1- Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter 311, Texas Tax Code, as applicable. III. BACKGROUND By Ordinance No. , adopted , the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. FBISD desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. FBISD received written notice from the City of the City's intent'to establish the Reinvestment Zone. Such notice was received more than sixty (60) days before the public hearing on the creation of the Reinvestment Zone and conforms in all respects to the requirements of {}311.003 of the Texas Tax Code. IV, OBLIGATIONS OF FBISD A. Tax Increment Participation by FBISD For and in consideration of the agreements of the parties set forth herein, and subject to the remaining subsections of this section, FBISD agrees to participate in the Reinvestment Zone, contributing the below listed amounts of the tax increment produced in the Reinvestment Zone attributable to FBISD to the Tax Increment Fund during the term of this Agreement (the "FBISD Tax Increment Participation") The amount to be contributed by FBISD is the amount of taxes collected by FBISD each year during the term of this Agreement at a rate of $0.83865 per $100 valuation on the Captured Appraised Value. If the FBISD tax rate is less than $0.83865, then the FBISD Tax Increment Participation is the total amount of taxes collected by FBISD at the actual tax rate of FBISD on the Captured Appraised Value. Taxes collected by result of an FBISD tax levy at a tax rate greater than $0.83865 shall be retained by FBISD. F:\TL 1532~SHADCRK~ZONE~INTERLOC.FBI -6- December 16, 1998, 3:30 p.m. FBISD's Tax Increment Participation and obligation to participate in the Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment Zone in the amount shown above. FBISD shall not be obligated to pay its FBISD Tax Increment Participation from other FBISD taxes or revenues or until the FBISD Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the FBISD Tax Increment Participation shall accrue as taxes representing the FBISD tax increment are collected by FBISD and payment shall be due on the first day of each calendar quarter. The City and the Reinvestment Zone agree that no interest or penalty will be charged to FBISD. B. Changes in Applicable Laws In the event that the laws applicable to FBISD or tax increment reinvestment zones are changed so that the participation of FBISD in the Reinvestment Zone decreases the amount of state funds available to FBISD, the City and the Reinvestment Zone agree that (i) the FBISD Tax Increment Participation shall be decreased by the amount of the decrease in FBISD state funding as a result of FBISD's participation in the Reinvestment Zone, or (ii) FBISD may completely withdraw from participation in the Reinvestment Zone. C. Expansion of the Investment Zone The obligation of FBISD to participate in the Reinvestment Zone is limited to the area described in Exhibit "A" attached hereto. FBISD's participation shall not extend to the tax increment on any additional property added to the Reinvestment Zone by the City unless FBISD approves the participation. D, Board of Directors As a participating taxing unit, FBISD shall have the right to appoint one (1) member on the Reinvestment Zone Board of Directors. Failure of FBISD to appoint a person to the Board of Directors of the Reinvestment Zone by March 1, 1999, shall be deemed a waiver of the FBISD's right to make an appointment by a later date. FBISD agrees that, in accordance with State law, FBISD Trustees are not eligible for appointment to the Reinvestment Zone Board of Directors. F:\TL 1532~SHADCRK~ZONE~TERLOC.FBI -7- December 16, 1998, 3:30 p.m. V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to FBISD before any such plan is finally apprOved. VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the FBISD Tax Increment Participation shall be for those taxes levied by FBISD in the year 1999 and the last payment by FBISD under this Agreement is for those taxes levied by FBISD in the year 2028. B. Early Termination The City shall not adopt an ordinance terminating the Reinvestment Zone eadier than the duration of the Zone established in Ordinance No. , without the pdor consent of FBISD, provided that the P, einvestment Zone may otherwise terminate by operation of law. C. Disposition of Tax Increments Upon termination of the P, einvestment Zone, if all public improvements in the Project Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the Reinvestment Zone shall pay to FBISD all monies remaining in the Tax Increment Fund that are attributable to the FBISD Tax Increment Participation. VII. MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either FBISD, the City or the F:\TL 1532~SHADCRK~ZONE~NTERLOC.FBI O December 16, 1998, 3:30 p.m. -O- Reinvestment Zone in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. In the event any term, covenant or condition shall be held invalid and affects in any manner the limitations on FBISD's contributions or participation, then this Agreement shall be void as to FBISD and FBISD shall have no liability for any incremental or other payments as may otherwise be provided for in this Agreement. B. Entire Agreement This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. C. Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. D. Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending pa~y. E. Non-Waiver Failure of any party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict F:\TL 1532~SHADCRK~ZONE~NTERLOC.FB 1 -9- Decembe~ 16, 1998, 3:30 p.m. compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. F. Assignment No party shall assign this Agreement at law or otherwise without the prior written consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or agent of the City or of any trustee, officer, agent or employee of FBISD. H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. F:\TL1532~HADCRK~ZONE~qNTERLOC.FBI -10- December 16, 1998, 3:30 p.m. NOTE TO COUNCIL EXHIBIT "E" TO RESOLUTION NO. R98-79 WILL BE PROVIDED TO YOU AT THE CITY COUNCIL MEETING ON DECEMBER 21, 1998 Exhibit "F" THE STATE OF TEXAS COUNTIES OF FORT BEND, BRAZORIA AND HARRIS INTERLOCAL AGREEMENT I. PARTIES A. Address THIS INTERLOCAL AGREEMENT ("Agreement") is made by and between the CITY OF PEARLAND, TEXAS ("City"), a municipal corporation and home-rule city of the ~tate of Texas principally situated in the Counties of Fort Bend, Brazoria, and Harris, acting by and through its goveming body, the City Council; ALVIN COMMUNITY COLLEGE ("ACC"), located at 3110 Mustang Road, Alvin, Texas 77511; and the REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (the "Reinvestment Zone"), a reinvestment zone created by the City of Pearland pursuant to Chapter 311 of the Texas Tax Code, acting by and through its Board of Directors. This Agreement is made pursuant to Chapter 791 of the Texas Government Code and Section 311.013 of the Texas Tax Code. The initial addresses of the parties, which one party may change by giving written notice of its changed address to the other parties, are as follows: City ACC City Manager or Designee City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 Alvin Community College Attention: President 3110 Mustang Road Alvin, Texas 77511 The Reinvestment Zone Reinvestment Zone Number Two, City of Pearland, Texas Attention: Chairman c/o City of Pearland, Texas 3519 Liberty Drive Pearland, Texas 77581 F:\TL 1532~SHADCRK~Z ONE'dNTEP,.LOC .ACC December 16. 199B, 3:30 p.m. B. Index The City, ACC and the Reinvestment Zone hereby agree to the terms and conditions of this Agreement. This Agreement consists of the following sections: Section/Description I. PARTIES Page 1 II. DEFINITIONS 5 III. BACKGROUND 6 IV. OBLIGATIONS OFACC 6 V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE 8 VI, TERM AND TERMINATION 8 VII. MISCELLANEOUS 8 Exhibit "A" -- City of Pearland Ordinance No. C. Parts Incomorated All of the above described sections and documents are hereby incorporated into this Agreement by this reference for all purposes. F:\TL 1532~SHADCRK~ZO~OC.ACC _~_ December 16, 1998, 3:30 p.m. IN WITNESS HEREOF, the City, ACC and the Reinvestment Zone have made and executed this Agreement in multiple copies, each of which is an original. CITY OF PEARLAND, TEXAS, ALVIN COMMUNITY COLLEGE a home rule municipality City Mayor Date President Date ATTEST: Trustee Date City Secretary Date (SEAL) Trustee Date COUNTERSIGNED: Trustee Date City Manager Date Trustee Date APPROVED AS TO FORM: APPROVED AS TO FORM: City Attorney Date Attorney Date F:\TL I $32~SHADCRK~ZONE'QNTERLOC.ACC -3 - December 16, 1998, 3:30 p.m. REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS By: Date Title: Chairman, Board of Directors ATTEST/SEAL: By: Date Title: Secretary, Board of Directors [The remainder of this page is intentionally left blank.] F:\TL 1532~SHADCRK~ZONE~INTERLOC.ACC -4- December 16, 1998, 3:30 p.m. II. DEFINITIONS As used in this Agreement, the following terms shall have the meanings set out below: "Administrative Costs" means the costs of organizing the Reinvestment Zone, the costs of operating the Reinvestment Zone and the imputed administrative costs associated with the Reinvestment Zone incurred by the City in connection with the implementation of the project plan. "ACC" is defined in Section I of this Agreement and includes its successors and assigns. "ACC Tax Increment Participation" means the amount of ACC tax levy on the Captured Appraised Value which ACC agrees to contribute to the Reinvestment Zone pursu~ ant to Subsections A and B of Section IV of this Agreement. "Agreement" means this agreement between the City, ACC and the Reinvestment Zone. "Agreement Term" is defined in Section VI. "Captured Appraised Value" means the captured appraised value of the Reinvestment Zone as defined by Chapter 311, Texas Tax Code. "City" is defined in Section I of this Agreement and includes its successors and assigns. "Countersignature Date" means that date shown as the date countersigned by the City Manager on the signature page of this Agreement. "Project Plan" means the project plan and reinvestment zone financing plan for the Reinvestment Zone adopted by the board of directors of the Reinvestment Zone and approved by the City Council of the City. "Reinvestment Zone" means Reinvestment Zone Number Two, City of Pearland, Texas created by the City on , by Ordinance No. , attached as Exhibit "A," and includes its successors and assigns. "Tax Increment Fund" means the tax increment fund created by the City in the City Treasury for the Reinvestment Zone. F:\TL 1532~SHADCRK~Z ONE~t'NTERLOC.ACC December 16, 1998, 3:30 p.m. --)- Otherwise, the terms used herein shall have the meanings ascribed to them in Chapter 311, Texas Tax Code, as applicable. III. BACKGROUND By Ordinance No. , adopted , the City created the Reinvestment Zone for the purposes of development and redevelopment in the area of the Reinvestment Zone. The City will deposit tax increments produced in the Reinvestment Zone in the Tax Increment Fund. ACC desires to participate in the Reinvestment Zone in consideration for the agreements set forth below. ACC received written notice from the City of the City's intent to establish.the Reinvestment Zone. Such notice was received more than sixty (60) days before the public hearing on the creation of the ReinveStment Zone and conforms in all respects to the requirements of {}311.003 of the Texas Tax Code. IV. OBLIGATIONS OF ACC A. Tax Increment Participation by ACC For and in consideration of the agreements of the parties set forth herein, and subJect to the remaining subsections of this section, ACC agrees to participate in the Reinvestment Zone by contributing the below listed amounts of the tax increment produced in the Reinvestment Zone attributable to ACC to the Tax Increment Fund during the term of this Agreement (the "ACC Tax Increment Participation"). (1) The amount in the years 1999 through 2003 is the amount of taxes collected by ACC in each of such years at an ACC tax rate of $0.197462 per $100 valuation on the Captured Appraised Value. If the ACC tax rate is less than $0.197462 during such pedod, then the ACC Tax Increment Participation is the total amount of taxes collected by ACC at the actual tax rate of ACC on the Captured Appraised Value. Taxes collected during such period by result of an ACC tax levy at a tax rate greater than $0.197462 shall be retained by ACC. F:\TL 1532~SI-LADCR. K~ZONEXJNTERLOC. ACC December 16, 1998, 3:30 p.m. -~- (2) The amount in years 2004 through 2008 is the amount of taxes collected by ACC in each of such years at a rate of $0.1480965 per $100 valuation on the Captured Appraised Value. If the ACC tax rate is less than $0.1480965 for such year, then the ACC Tax Increment Participation in such year is the total amount of taxes collected by ACC at the actual tax rate of ACC on the Captured Appraised Value. Taxes collected dudng such period by result of an ACC tax levy at a tax rate greater than $0.1480965 shall be retained by ACC. (3) The amount in years 2009 through 2028 is the amount of taxes collected by ACC in each of such years at a rate of $0.098730 per $100 valuation on the Captured Appraised Value. If the ACC tax rate is less than $0.098730 for such year, then the ACC Tax Increment Participation in such year is the total amount of taxes collected by ACC at the actual tax rate of ACC on the Captured Appraised Value. Taxes collected during such pedod by result of an ACC tax levy at a tax rate greater than $0.098730 shall be retained by ACC. ACC's Tax Increment Participation and obligation to participate in the Reinvestment Zone shall be restricted to its tax increment collected on the Captured Appraised Value in the Reinvestment Zone in the amounts shown above. ACC shall not be obligated to pay its ACC Tax Increment Participation from other ACC taxes or revenues or until the ACC Tax Increment Participation in the Reinvestment Zone is actually collected. The obligation to pay the ACC Tax Increment Participation shall accrue as taxes rePresenting the ACC tax increment are collected and payment shall be due on the first day of each calendar quarter. B. Expansion of the Investment Zone The obligation of ACC to participate in the Reinvestment Zone is limited to the area described in Exhibit "A"' attached hereto. ACC's participation shall not extend to the tax increment on any additional property added to the Reinvestment Zone by the City unless ACC approves the participation. F:\TL 1532~SHADCRK~ZONE~TERLOC.ACC December 16, 1998, 3:30 p.m. V. OBLIGATIONS OF CITY AND THE REINVESTMENT ZONE A copy of the Reinvestment Zone Project Plan and any amendments thereto shall be provided to ACC before any such plan is finally approved by the Reinvestment Zone. VI. TERM AND TERMINATION A. Agreement Term This Agreement shall become effective as of the date of the final signature hereto, and shall remain in effect until thirty (30) years later. The first payment of the ACC Tax Increment Participation shall be for those taxes levied by ACC in the year 1999 and the last payrrient by ACC under this Agreement is for those taxes levied by ACC in the year 2028. B. Early Termination The City shall not adopt an ordinance terminating the Reinvestment Zone eadier than the duration of the Zone established in Ordinance No. , without the prior consent of ACC, provided that the Reinvestment Zone may othenNise terminate by operation of law. C. Disposition of Tax Increments Upon termination of the Reinvestment Zone, if all public improvements in the Project Plan have been constructed and financed and if all Reinvestment Zone debt is paid in full, the City and the Reinvestment Zone shall pay to ACC all monies remaining in the Tax Increment Fund that are attributable to the ACC Tax Increment Participation. VII, MISCELLANEOUS A. Severability In the event any term, covenant or condition herein contained shall be held to be invalid by any court of competent jurisdiction, such invalidity shall not affect any other term, covenant or condition herein contained, provided that such invalidity does not materially prejudice either ACC, the City or the F:\TLI 532~S HADCRK~Z ONE~ITERLOC. ACC O December 16, 1998, 3:30 p.m. -O- Reinvestment Zone in their respective rights and obligations contained in the valid terms, covenants or conditions hereof. In the event any term, covenant or condition shall be held invalid and affects in any manner the limitations on ACC'~ contributions or participation, then this Agreement shall be void as to ACC and ACC shall have no liability for any incremental or other payments as may otherwise be provided for in this Agreement. B, Entire Agreement This Agreement merges the prior negotiations and understandings of the parties hereto and embodies the entire agreement of the parties, and there are no other agreements, assurances, conditions, covenants (express or implied) or other terms with respect to the covenants, whether written or verbal, antecedent or contemporaneous, with the execution hereof. C. .Written Amendment Unless otherwise provided herein, this Agreement may be amended only by written instrument duly executed on behalf of each party. D, Notices All notices required or permitted hereunder shall be in writing and shall be deemed delivered when actually received or, if earlier, on the third (3rd) day following deposit in a United States Postal Service post office or receptacle with proper postage affixed (certified mail, return receipt requested) addressed to the respective other party at the address prescribed in Section I of this Agreement or at such other address as the receiving party may have theretofore prescribed by notice to the sending party. E, Non-Waiver Failure of any party hereto to insist on the stdct performance of any of the agreements herein or to exercise any rights or remedies accruing hereunder upon default or failure of performance shall not be considered a waiver of the right to insist on, and to enforce by any appropriate remedy, strict F:\TLI 532~SHADCRK~ZONE~NTERLOC. ACC December 16, 1998, 3:30 p.m. -~:~- compliance with any other obligation hereunder or to exercise any dght or remedy occurring as a result of any future default or failure of performance. F. Assignment No party shall assign this Agreement at law or otherwise without the prior written consent of the other parties. No party shall delegate any portion of its performance under this Agreement without the written consent of the other parties. G. Successors This Agreement shall bind and benefit the parties and their legal successors. This Agreement does not create any personal liability on the part of any officer or agent of the City or of any trustee, officer, agent or employee of ACC. H. No Waiver of Immunity No party hereto waives or relinquishes any immunity or defense on behalf of itself, its trustees, officers, employees, and agents as a result of its execution of this Agreement and performance of the covenants contained herein. F:\TL 1532~SHADCRK~ZONE~qTERLOC.ACC Decembe~ 16, 1998, 3:30 p.m. - [ U-