R-2014-117 2014-09-29 RESOLUTION NO. R2014-117
A Resolution of the City Council of the City of Pearland, Texas,
authorizing the City Manager or his designee to enter into an Amended
Development Agreement with MHI Compressor International
Corporation and MHI Compressor Manufacturing, LLC.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That the City, MHI Compressor International Corporation and MHI
Compressor Manufacturing, LLC. previously entered into the Development Agreement and
attached hereto.
Section 2. That the parties to the Development Agreement desire to amend the
terms of said Agreement.
Section 3. That certain Amended 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 4. That the City Manager or his designee is hereby authorized to execute
and the City Secretary to attest an Amended Development Agreement.
PASSED, APPROVED and ADOPTED this the 29th day of September, A.D., 2014.
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TOM REID
MAYOR
ATTEST:
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APPROVED AS TO FORM:
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DARRIN M. COKER
CITY ATTORNEY
Resolution No. 2014-117
Exhibit "A"
AMENDMENT TO
DEVELOPMENT AGREEMENT
This Amendment (hereinafter "Amendment") is made between the City of
Pearland, Texas (hereinafter "City"), and MHI Compressor International and MHI
Compressor Manufacturing, LLC (hereinafter, collectively "MHI") to amend that
Development Agreement (the "Agreement") between the City and MHI effective May
27th, 2014.
1. Amended Terms. The City and the MHI hereby agree that Section 4.2 c)
Competitive Bidding, of the Agreement, attached hereto as Exhibit "A", is amended as
follows:
The parties to the Agreement acknowledge that a Trigger Event occurred
on September 24, 2014 when MHI applied for a building permit for a
portion of Phase II of the Project. As a result of the Trigger Event, MHI's
is currently obligated to pay the full Participation Amount to the City on
or before October 7, 2014. In consideration of the anticipated
construction schedule for the Road Improvements, City hereby authorizes
MHI to delay payment of the full Participation Amount to the City until
September 30, 2015. In consideration for the City's agreement to delay
payment of the full Participation Amount, MHI shall deliver to the City,
within five (5) days following the execution of this Amended Agreement,
a new or amended letter of credit issued by a bank reasonably satisfactory
to the City securing MHI's obligation to pay the full Participation
Amount based on the delayed payment referenced herein. MHI's failure
to secure an amended letter of credit as required by this Amendment shall
be deemed a Trigger Event and the City shall retain its rights to secure
immediate payment of the full Participation Amount under the current
letter of credit.
2. Agreement to Remain in Force. Other than the provisions of the Agreement
expressly amended herein, the Agreement, including other provisions of Section 4.2 c)
not amended, shall remain in full force and its enforceability shall be unaffected by this
Amendment.
EXECUTED and EFFECTIVE as of the eZ day of O c-4 o6-ec , 2014.
CITY OF PEARLAND, TEXAS
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Clat"Pearson
City Manager
MHI COMPRESSOR
MANUFACTURING, LLC
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MHI COMPRESSOR
INTERNATIONAL CORPORATION
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