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R-2013-126-2013-08-12-Failed RESOLUTION NO. R2013-126 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO ENTER INTO A DEVELOPMENT AGREEMENT ASSOCIATED WITH PROPOSED DEVELOPMENT IN BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 22. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain Development Agreement, 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 Development Agreement. PASSED, APPROVED and ADOPTED this the 12th day of August, A.D., 2013. TOM REID MAYOR ATTEST: YOUNG LORFING, TRMC CITY SECRETARY APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY Resolution No. R2013-126 Exhibit "A" DEVELOPMENT AGREEMENT This DEVELOPMENT AGREEMENT (this "Agreement") is made and entered into as of August 12, 2013, by and between the CITY OF PEARLAND, TEXAS, a municipal corporation and home-rule city of the State of Texas (the "City"); ROSHARON RESERVE, LLC, a Texas limited liability company (the "Developer"); BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 21, a conservation and reclamation district operating pursuant to the provisions of Texas Water Code, Chapters 49 and 54 ("BCMUD 21"); BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 22, a conservation and reclamation district operating pursuant to the provisions of Texas Water Code, Chapters 49 and 54 ("BCMUD 22"); and MICHAEL D. COPELAND, TRUSTEE ("Copeland Trustee"). RECITALS The Developer has entered into a contract with Copeland Trustee to purchase the property located generally south of Texas State Highway 6 and within the City's extraterritorial jurisdiction ("ETJ"), more fully described in Exhibit A, attached hereto (the "Property"). The City has received from Copeland Trustee a petition for consent to the annexation of the Property into BCMUD 22 ("Petition"), and the addition of the Property to BCMUD 22 is necessary for the development of the Property with water and wastewater facilities. The City has stated that it is willing to consent to the addition of the Property to BCMUD 22 subject to (i) the terms and conditions specified in Exhibit B to the Petition, (ii) BCMUD Nos. 21 and 22's agreement not to serve any other multi-family developments without the City's prior written consent, and (iii) Copeland Trustee's agreement, on behalf of himself and future owners of the land described in Exhibit "C" (the "Remainder Tract"), that no multi-family development will occur on the Remainder Tract without the City's consent. The parties hereto have determined that they are authorized by the Constitution and laws of the State of Texas to enter into this Agreement and have further determined that the terms, provisions and conditions hereof are mutually fair and advantageous to each. AGREEMENT ARTICLE 1 OBLIGATIONS OF THE DEVELOPER Error!No property name supplied. 1.1. The Development. The Developer intends to develop and construct an approximately 120 unit multi-family residential project (the "Project") on the Property, substantially as provided in the drawing attached hereto as Exhibit B. The Developer agrees to be bound by and follow applicable City ordinances and regulations generally relating to the development and construction of the Project in the City's ETJ. In addition, Developer agrees to the following development requirements: (1) the exterior of all buildings within the Development shall be constructed with one hundred percent (100%) masonry building materials that comply with the requirements of the City's Unified Development Code; (2) all buildings within the development will be constructed to comply with the City's adopted Fire Code/Life Safety Code requirements, including, but not limited to the installation of an approved fire suppression system; and (3) City inspections of the property shall be allowed to verify compliance with the terms of this Agreement. 1.2. Park Dedication Ordinance. The Developer will contribute to the City a payment in the amount of $100,000 in lieu of dedication of land for park purposes with said payment to occur on or before obtaining a building permit for the Project. ARTICLE 2 CITY CONSENT TO ANNEXATION OF THE PROPERTY 2.1. Annexation into the District. The City agrees to consent to the annexation of the Property into BCMUD 22, subject to the terms of the consent conditions attached as Exhibit B to the Petition. The City acknowledges and consents to the construction of the Project provided the Developer follows applicable City codes and ordinances. 2.2. Strategic Partnership Agreement. The parties acknowledge that BCMUD 22 and the City are parties to a Strategic Partnership Agreement, and that, upon annexation of the Property into BCMUD 22, the Property will become subject to the terms of such agreement. ARTICLE 3 AGREEMENTS OF BCMUD NOS. 21 AND 22 AND COPELAND TRUSTEE 3.1. Agreement of the Districts. BCMUD Nos. 21 and 22 each agree that it shall not provide water or sanitary sewer service to any multi-family residential development of property without the prior approval of the City, which approval may be withheld for any reason. -2- Error! No property name supplied. 3.2 Agreement of Copeland Trustee. Copeland Trustee agrees, on behalf of itself and all future owners of the Remainder Tract, that the tract may not be developed for multi-family residential purposes without the prior consent of the City, which consent may be withheld for any reason. Copeland Trustee agrees that a memorandum of this Agreement may be recorded in the real property records of Brazoria County and referencing this Agreement and the Remainder Tract. ARTICLE 4 TERM AND DEFAULT 3.1. Term. This Agreement shall be in effect as of the date set forth on the first page hereof, and shall terminate 20 years thereafter, unless terminated earlier as specifically provided herein. Termination of this Agreement after the Project is annexed into BCMUD 22 shall not effect such district's obligation to provide water and sewer service to the Project. 3.2. Default. a. A party shall be deemed in default under this Agreement (which shall be deemed a breach hereunder) if such party fails to materially perform, observe or comply with any of its covenants, agreements or obligations hereunder or breaches or violates any of its representations contained in this Agreement. b. Before any failure of any party to perform its obligations under this Agreement shall be deemed to be a breach of this Agreement, the party claiming such failure shall notify, in writing, the party alleged to have failed to perform of the alleged failure and shall demand performance. No breach of this Agreement may be found to have occurred if performance has commenced to the reasonable satisfaction of the complaining party within 30 days of the receipt of such notice, subject, however, to the terms and provisions of Section 4.1, below. Upon a breach of this Agreement, the non-defaulting party may be awarded actual damages for failure of performance. Except as otherwise set forth herein, no action taken by a party pursuant to the provisions of this Section pursuant to the provisions of any other section of this Agreement shall be deemed to constitute an election of remedies and all remedies set forth in this Agreement -3- Error!No property name supplied. shall be cumulative and non-exclusive of any other remedy either set forth herein or available to any Party at law or in equity. Each of the parties shall have the affirmative obligation to mitigate its damages in the event of a default by the other party. A default by one party shall not release a party from its obligations hereunder to any non- defaulting party. ARTICLE 4 MISCELLANEOUS PROVISIONS 4.1. Force Majeure. In the event either party is rendered unable, wholly or in part, by force majeure to carry out any of its obligations under this Agreement, except the obligation to pay amounts owed or required to be paid pursuant to the terms of this Agreement, then the obligations of such party, to the extent affected by such force majeure and to the extent that due diligence is being used to resume performance at the earliest practicable time, shall be suspended during the continuance of any inability so caused to the extent provided but for no longer period. As soon as reasonably possible after the occurrence of the force majeure relied upon, the party whose contractual obligations are affected thereby shall give notice and full particulars of such force majeure to the other party. Such cause, as far as possible, shall be remedied with all reasonable diligence. The term "force majeure," as used herein, shall include without limitation of the generality thereof, acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, orders of any kind of the government of the United States or the State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, tornados, hurricanes, storms, floods, washouts, drought, arrests, restraint of government, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply resulting in an inability to provide water necessary for operation of the water and wastewater systems hereunder, and any other inabilities of any party, whether similar to those enumerated or otherwise, which are not within the control of the party claiming such inability, which such party could not have avoided by the exercise of due diligence and care. 4.2. Approvals and consents. Approvals or consents required or permitted to be given under this Agreement shall be evidenced by an ordinance, resolution or order adopted by the governing body of the appropriate party or by a certificate executed by a person, firm or entity previously authorized to give such approval or consent on behalf of the party. Approvals and consents shall be effective without regard to whether given before or after the time required for giving such approvals or consents. -4- Error! No property name supplied. However, the rights and obligations contained herein shall not become effective until such time as the City consents to the addition of the Property into the boundaries of BCMUD 22. 4.3. Address and notice. Any notice to be given under this Agreement shall be given in writing, addressed to the party to be notified as set forth below, and may be given either by depositing the notice in the United States mail postage prepaid, registered or certified mail, with return receipt requested; or by nationally recognized courier service. Notice shall be effective upon receipt by the party to be notified. For purposes of notice, the addresses of the parties shall be as follows: If to the City, to: City Manager City of Pearland 3519 Liberty Drive Pearland, Texas 77581 If to the Developer, to: Rosharon Reserve, LLC c/o MV Rosharon Reserve LLC 9349 Waterstone Blvd. Cincinnati, Ohio 45249 Attention: Brian McGeady If to BCMUD Nos. 21 and 22: Brazoria County Municipal Utility District No. 21 c/o Allen Boone Humphries Robinson LLP Phoenix Tower 3200 Southwest Freeway, Suite 2600 Houston, Texas 77027 Attention: Timothy Austin Brazoria County Municipal Utility District No. 22 c/o Allen Boone Humphries Robinson LLP Phoenix Tower 3200 Southwest Freeway, Suite 2600 Houston, Texas 77027 -5- Error!No property name supplied. Attention: Timothy Austin If to Copeland Trustee: Michael D. Copeland, Trustee 6633 Hillcroft Avenue, Suite 212 Houston, Texas 77081 The parties shall have the right from time to time to change their respective addresses by giving at least 15 days' written notice of such change to the other parties. 4.4. Assignability; successors and assigns. All covenants and agreements contained by or on behalf of a party in this Agreement shall bind its successors and assigns and shall inure to the benefit of the other parties, their successors and assigns. The parties may assign their rights and obligations under this Agreement or any interest herein, only with the prior written consent of the other parties, and any assignment without such prior written consent, including an assignment by operation of law, is void and of no effect; provided that, the Developer may make an assignment to a successor developer of the Property if such assignee specifically assumes all of the obligations of the Developer hereunder or may make a collateral assignment in favor of a lender without consent. This Section shall not be construed to prevent the Developer from selling lots, parcels or other portions of the Property in the normal course of business. If such assignment of the obligations by the Developer hereunder is effective, the Developer shall be deemed released from such obligations. If any assignment of the obligations by the Developer hereunder is deemed ineffective or invalid, the Developer shall remain liable hereunder. 4.5. No additional waiver implied. The failure of any party to insist upon performance of any provision of this Agreement shall not be construed as a waiver of the future performance of such provision by a party. 4.6. Reservation of rights. All rights, powers, privileges and authority of the parties hereto not restricted or affected by the express terms and provisions hereof are reserved by the parties and, from time to time, may be exercised and enforced by the parties. 4.7. Parties in interest. This Agreement shall be for the sole and exclusive benefit of the parties hereto and shall not be construed to confer any rights upon any third parties. -6- Error!No property name supplied. 4.8. Merger. This Agreement embodies the entire understanding between the parties and there are no representations, warranties, or agreements between the parties covering the subject matter of this Agreement. 4.9. Modification; exhibit. This Agreement shall be subject to change or modification only with the mutual written consent of the parties hereto. The exhibits attached to this Agreement are incorporated by this reference for all purposes. 4.10. Captions. The captions of each section of this Agreement are inserted solely for convenience and shall never be given effect in construing the duties, obligations or liabilities of the parties hereto or any provisions hereof, or in ascertaining the intent of either party, with respect to the provisions hereof. 4.11. Interpretations. This Agreement and the terms and provisions hereof shall be liberally construed to effectuate the purposes set forth herein and to sustain the validity of this Agreement. 4.12. Severability. If any provision of this Agreement or the application thereof to any person or circumstances is ever judicially declared invalid, such provision shall be deemed severed from this Agreement and the remaining portions of this Agreement shall remain in effect. -7- Error! No property name supplied. IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple copies, each of equal dignity, as of the date first given above. CITY OF PEARLAND, TEXAS By: Bill Eisen, City Manager By: Young Lorfing, TRMC, City Secretary APPROVED AS TO FORM: By: Darrin Coker, City Attorney ROSHARON RESERVE, LLC A Texas limited liability company By MV Rosharon Reserve LLC an Ohio limited liability company, its Managing Member By MV Affordable Housing LLC an Ohio limited liability company, its Sole Member By: Name: Authorized Signer By: Name: Authorized Signer -8- Error! No property name supplied. BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 21 By: Name: Title: Attest: Secretary, Board of Directors BRAZORIA COUNTY MUNICIPAL UTILITY DISTRICT NO. 22 By: Name: Title: Attest: Secretary, Board of Directors Michael D. Copeland, Trustee -10- Error! No property name supplied. EXHIBIT A THE PROPERTY -11- Error! No property name supplied. EXHIBIT B PLAN OF DEVELOPMENT -12- Error! No property name supplied. EXHIBIT C REMAINDER TRACT -13- Error! No property name supplied. EXHIBIT A THE PROPERTY v • -8, 48*?733-1/.32,v.-1 • . DevoloproctitAgreertioni(Bra42)11068.do . . . .‘ . . , . . . . . . . . . • • . . . _ . • • ggAi2 343E44 1? 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