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R-2015-122 2015-08-10RESOLUTION NO. R2015-122 A resolution granting the consent of the City Council of the City of Pearland, Texas, consenting to the annexation of property, generally located at the intersection of Barry Rose Road at Pearland Parkway, into Harris County Municipal Utility District No. 509. WHEREAS, Harris County Municipal Utility District No. 509 was created by House Bill No. 4080, 80th Legislature, Regular Session, of the State of Texas (the "Legislation") and is located wholly in the City's corporate boundaries; and WHEREAS, Section 54.016 of the Texas Water Code provides that land within a city's corporate boundaries may not be included within a district without the city's written consent; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That the City Council of the City of Pearland, Texas, gives its written consent to the annexation of 26.522 acres, as more accurately described in Exhibit "A" attached hereto, into the boundaries of Harris County Municipal Utility District No. 509, subject to the conditions attached hereto as Exhibit "B," which conditions apply to all land in the District. PASSED, APPROVED and ADOPTED this the 2151 day of September, A.D., 2015. ATTEST: NG LOR IT SECR APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY )ovvr? TOM REID MAYOR ```..a 11 u St.,,�. zr % \ Resolution No. R2015-122 Exhibit "A" May 11,2015 Job No. 1727-7002 DESCRIPTION OF 26.522 ACRES PROPOSED ZONE BOUNDARY Being 26.522 acres of land located in the Thomas J. Green Survey, Abstract No. 198, Brazoria County, Texas, out of the 140.6899 acre tract conveyed to Martha Alexander Crouch by instrument of record In Volume 1595, Page 422 of the Deed Records of Brazoria County, Texas, and the 172.0566 acre tract conveyed to Robert L. Alexander by Instrument of record in Volume 1725, Page 120 of the Deed Records of Brazoria County, Texas and being more particularly described by metes and bounds as follows (all bearings referenced to the Texas Coordinate System, South Central Zone, NAD 83, 2001 adjustment); BEGINNING at a 1/2" Iron rod found for the northwest comer of BANBURY CROSS SECTION IV, a subdivision of record in Volume 19, Page 487-488 of the Plat Records of Brazoria County, Texas, common to the northwest corner of Lot 13, Block 11 of said BANBURY CROSS SECTION IV, in the southeast line of said 172.0566 acre tract; THENCE South 41° 41' 44" West — 605.22', along the southeast fine of said 172.0566 acre tract, common to the northwest line of said BANBURY CROSS SECTION IV, to the north corner of Lot 4, of said Block 11, common to the west corner of Lot 5, or said Block 11, from which a 5/8" iron rod bears North 15° 34' 21" West — 0.89'; THENCE North 46° 57' 51" West — 768.49' to point for corner. in the south line of the 3.644 acre tract described as Parcel 3, conveyed to City of Pearland recorded under Document Number 20050118363 of the Official Records of Brazoria County, Texas, from which a found 5/8 -inch Iron rod with cap stamped 'RPLS 1718" bears North 45° 06' 48" West -- 0.20'; THENCE North 41° 40' 34" East — 1169.42', along the southeast line of said 3.644 acre tract, and the southeast line of the 4.137 acre tract described as Parcel 5, conveyed to City of Pearland recorded under File Number 04-003782, of the Official Records of Brazoria County, Texas, to a 1/2' iron rod found for the east corner of said 4.137 acre tract, common to the south comer of the 0.149 acre tract described as Tract 1 conveyed to City of Pearland recorded under Fite Number 01-032032, of the Official Records of Brazoria County, Texas: Page 1 of 3 1 Wroldski\SURVEY1172717002'M&B\Zone Boundary Revised 5.11.15 doc 26.522 acre May 11, 2015 Job No. 1727-7002 THENCE North 41° 30' 50" East — 92.95', along the southeast tine of said 0.149 acre tract, to a 1/2" iron rod found for an angle corner of said 0.149 acre tract; THENCE South 860 05' 58" East — 44.24', along the south line of said 0.149 acre tract, to a found 5/8" iron rod with cap stamped 'Wilson" for the found for the east corner of said 0.149 acre tract, in the southwest line of the 2.739 acre tract conveyed to City of Pearland, recorded in File Number 98-054852, of the Official Recrods of Brazoria County, Texas, common to the southwest right-of-way line of Pearland Parkway (130 Leet wide); THENCE South 48° 23' 55" East — 365.36', along the southwest line of said 2.739 acre tract, common to the southwest right-of-way line of said Pearland Parkway, to a 1/2" iron rod found for the beginning of a curve to the right; THENCE 532.98', continuing along the southwest line of said 2.739 acre tract, common to the southwest right-of-way line of said Pearland Parkway, and the 1.164 acre tract conveyed to City of Pearland, recorded under Flle Number 98-054881 of the Official Records of Brazoria County, Texas, along the arc of a tangent curve to the right, having a radius of 1805.00', a central angle of 16° 55' 07", and a chord which bears South 39° 56' 22" East - 531.05' to a 1/2" iron rod lound for the end of curve; THENCE South 31' 28' 49' East — 210.23 feet to a 1/2" iron rod found for the west corner of that certain called 0.299 acre tract conveyed to City of Pearland, recorded under File Number 99- 013566, of the Official Records of Brazoria County, Texas, in the northwest Zine of a 100 foot wide Drainage Easement conveyed to Brazoria County Drainage District Number 4 recorded under Volume 1736, Page 884, of the Deed Records of Brazoria County, Texas and under Volume 1760, Page 655, of the Deed Records of Brazoria County, Texas; THENCE South 55° 59' 45" West — 360.12', along said northwest easement line, to a 1/2" iron rod found for a point for comer in said easement; Page 2 of 3 1 taroidsk1l5URVEY1172717002M&82one Boundary Revised 511.15 doc 26.522 acre May 11, 2015 Job No. 1727-7002 THENCE South 18° 01' 00" East — 29.19', continuing along a west line of said easement, to a found 5/8" iron rod for the northeast corner of Lot 88, Block 8, of aforesaid BANBURY CROSS SECTION IV; THENCE North 82° 38' 55" West — 356.36', along a northeast line of said BANBURY CROSS SECTION IV, to the POINT OF BEGINNING of the herein described tract and containing 26.522 acres of land. /, that L. 'R• , FedS Regi red Professional Land Surveyor Tex Registration No. 5997 Page 3 of 3 11Proidsk11SURVEY11727\7D022Ma81Zone Boundary Rovisod 5-11.15 doe LJA Engineering, Inc RESOLUTION NO. R2015-122 Exhibit "B" EXHIBIT "B" (a) The City of Pearland, Texas (the "City"), by execution of its City Manager, and the developer on behalf of the District have entered into and executed a utility agreement that specifies the terms and conditions for providing water and sewage treatment services (and other services) to the District (the "Utility Agreement"). The District shall assume all the rights, obligations, and interests of the developer under the Utility Agreement, as set forth therein (b) The District may issue bonds, including refunding bonds, for any purposes authorized by law, including but not limited to, purchasing, refinancing, designing and constructing, or otherwise acquiring waterworks systems, sanitary sewer systems, storm sewer systems, drainage facilities, or recreational facilities, or parts of such systems or facilities, and to make any and all necessary purchases, constructions, improvements, extensions, additions, and repairs thereto, and to purchase or acquire all necessary land, right-of-way, easements, sites, equipment, buildings, plants, structures, and facilities therefor, and to operate and maintain same, and to sell water, sanitary sewer, and other services within or without the boundaries of the District. Such bonds must provide that the District reserves the right to redeem said bonds on any date subsequent to the fifteenth (15th) anniversary of the date of issuance (or any earlier date at the discretion of the District) without premium, and none of such bonds, other than refunding bonds, will be sold for less than 95% of par; provided that the net effective interest rate on bonds so sold, taking into account any discount or premium as well as the interest rate borne by such bonds, will not exceed two percent (200) above the highest average interest rate reported by the (Daily Bond Buyer in its weekly "20 Bond Index' during the one month period next preceding the date of the sale of such bonds. The resolution authorizing the issuance of the District s bonds will contain a provision that the pledge of any revenues from the operation of the District's water and sewer and/or drainage system to the payment of the District's bonds will terminate when and if the City annexes the District, takes over the assets of the District, and assumes all of the obligations of the District. (c) Before the commencement of any construction within the District, its directors, officers, or developers and landowners will submit to the City, or to its designated representative, all plans and specifications for the construction of water, sanitary sewer, and drainage facilities to serve the District and obtain the approval of such plans and specifications therefrom. All water wells, water meters, flushing valves, valves, pipes, and appurtenances thereto, installed or used within the District, will conform to the specifications of the City. All water service lines and sewer service lines, lift stations, and appurtenances thereto, installed or used within the District will comply with the City's standard plans and specifications as amended from time to time. Prior to the construction of such facilities within or by the District, the District or its engineer will give written notice by registered or certified mail to the City, stating the date that ws Cortwni cuntlotott. such construction will be commenced. The construction of the District's water, sanitary sewer, and drainage facilities will be in accordance with the approved plans and specifications and with applicable standards and specifications of the City; and during the progress of the construction and installation of such facilities, the City may make periodic on -the -ground inspections. (d) Before the District commences construction of any recreational facilities which will be financed with bond proceeds, the District will submit to the Director of the City's Parks and Recreation Department, or to his designated representative, all plans and specifications for the construction of such facilities and obtain the approval of such plans and specifications. (e) Prior to the sale of any tot or parcel of land, the owner or the developer of the land included within the limits of the District will obtain the approval of the Planning and Zoning Commission of the City of a plat which will be duly recorded in the Official Records of Harris or Brazoria County, Texas, and otherwise comply with the rules and regulations of the Engineering Department and the Department of Public Works of the City of Pearland. 4 Lahibit ll-Conxent Comb LJA Engineering, Inc. IA 2929 Bnarpark Drive Phone 713.953.5200 Suite 600 .Fax 713.953.5026. Houston,Texas 77042 : wvth.taengineering.con TBPE h2 F-1386 TBPL5Ns 10110501 Memorandum . .. To: Mr. Patrick Barry, President—The Milestone Companies . From: : -Mr. Gary W: Mensik: PE, LJA Engineering, Inc. Copy: Mr.Greg Patch, PE, LJA Engineering, Inc. - Mr. Chance Vinkl.arek, PE, LJA Engineering, Inc. Mr. Ryan Harper-Allen Boone Humphries Robinson Date: July 22;2.015 Re: Harris County Municipal Utility District No.509 Annexation Request . Milestone,Barry Rose Tract-.Public Improvements: Attached is an exhibit for the Milestone Barry Rose Tract showing the_Public Improvements. The following is a Preliminary Summary of Cost for these Improvements. Water Distribution - $149,00.0 . Sanitary Sewer- $62,000 . Storm Sewer- $322,000 . Detention- $1875,000 Impact:Fees. $258,000 - Engineering- $158,000 Total- $2,824,000 Please feel free to call me at 713.953.5249 should you have questions or require any additional information. GWM :GAR_Y W.MENSIK .. . 84738 Cp.,.z/ s012�kt AI 7 O:\LAND\1326\1 326-0 0 061MILESTONE MEMO ABHR 072115:13OC City of Pearland In-City MUD Data Form MUD#Harris County 509 August 3,2015 Existing Proposed General Information MUD Tract(s) 1 Proposed Zoning Classification(also show on map) R-1 Cluster PD 2 Projected Date of Completion of All Homes/Businesses 2017 , 2017 Existing Proposed Area MUD Tract(s) Total 3 Total Acreage 502.778 26.522 529.300 4 Currently Platted Residential Acreage(including road rights of way) 124.923 0.000 124.923 5 Currently Platted Commercial Acreage(including road rights of way) 0.000 0.000 0.000 6 Currently Undeveloped Acreage 377.855 26.522 404.377 7 Projected Undeveloped Acreage to be Platted Residential 377.855 0.000 377.855 8 Projected Undeveloped Acreage to be Platted Commercial 0.000 26.522 26.522 9 Current and Projected Detention&Transmission Utility Easements(acres) 0.000 0.000, 0.000 10 All Other Acreage(Landscaping Reserves,Parks,etc) 0.000 0.000 0.000 Note:Lines 7 and 8 should total to Line 6. Lines 4,5,6,9,and 10 should total to Line 3. Line 3 should equal the total acreage in the MUD or the Proposed Tracts. Existing Proposed Residential Lots MUD Tract(s) Total 11 Total Existing and Planned Residential Lots 1164 4 1168 12 Number of Currently Completed/Occupied Homes . 67 0 67 13 Number of Currently Completed Lots 291_ 0 291 14 Number of Lots Under Construction 0 0 0 15 Number of Future Lots 806 4 810 Note:Lines 12,13,14,and 15 should total to Line 11 Existing Proposed Property Values MUD Tract(s) Total 16 Most Recent HCAD/BCAD Valuation(Estimated Date:January 1,2015) $ 22,596,596.00 $ 3,190.00 $ 22,599,786.00 17 Projected Total Valuation at Build Out Date $ 291,000,000.00 $ 40,000,000.00 $ 331,000,000.00 18 Projected Residential Valuation at Build Out $ 291,000,000.00 $ - $ 291,000,000.00 19 Projected Commercial Valuation at Build Out $ - $ 40,000,000.00 $ 40,000,000.00 20 Estimated Average Home Value(Date:January 1,2015) $ - $ - $ - 21 Estimated Average Home Value-at Build Out $ 250,000.00 $ - ,$ 250,000.00 Note:Lines 18 and 19 should total to Line 17 Existing Proposed Property Tax Revenues MUD Tract(s) Total 22 Pre-Development General Fund Taxes @ Annexation $ 4,186.70 $ 7.08 $ 4,193.79 23 Most Recent Year City Property Taxes @$.7121/$100 $ 160,910.36 $ 22.72 $ 160,933.08 24 Projected City Property Taxes @$.7121/$100 at Build Out $ 2,072,211.00 $ 284,840.00 $ 2,357,051.00 25 Most Recent Year MUD Rebate Amount $ 33,894.89 $ 3.19 $ 33,898.08 26 Projected MUD Rebate Amount at Build Out $ 436,500.00 $ 40,000.00 $ 476,500.00 Existing Proposed Calculations MUD Tract(s) Total 27 Approx.Net Density at Build Out-Homes/Acre{Line 11/(3-9)) $ 2.32 $ 0.15 $ . 2.21 28 Net Annual Revenue to City-Current Estimate(Line 23-25-22) $ 122,828.76 $ 12.44 $ 122,841.20 29 Net Annual Revenue to City-Build Out Estimate(Line 24-26-22) $ 1,631,524.30 $ 244,832.92 $ 1,876,357.21 W:\Land11326\Annexations\1326-0006 Milestone Annexation\Milestone mudform 080315.xlsx City of Pearland In-City MUD Data Form MUD#Harris County 509 August 3,2015 Existing Subdivisions Within Existing MUD Projected Percent Subdivision Name Area(Acres) Lots Complete Riverstone Ranch at Clear Creek Section 1 34.055 59 100% Riverstone Ranch at Clear Creek Section 2 25.997 100 100% Riverstone Ranch at Clear Creek Section 3 19.979 77 100% Riverstone Ranch at Clear Creek Section 4 34.113 55 100% Massey Lake Estates 40.285 86 0% 154.429 377 W:\Land\1326\Annexations\1326-0006 Milestone Annexation'Milestone mudfomi 080315.xlsx City of Pearland In-City MUD Data Form MUD#Harris County 509 August 3,2015 Proposed Subdivisions Within Annexation Request Projected Percent Subdivision Name Area(Acres) Lots Complete Milestone Development 26.522 4 0 26.522 4 • W:\Land\1326Wnnexations\1326-0006 Milestone Annexation\Milestone mudform 080315.xlsx City of Pearland In-City MUD Data Form MUD#Harris County 509 August 3,2015 Existing Non-Residential Businesses Within Existing MUD Business Name Type of Business W:\Land\1326\Annexations\1326-0006 Milestone Annexation\Milestone mudform 060315.xlsx City of Pearland In-City MUD Data Form MUD#Harris County 509 August 3,2015 Proposed Non-Residential Businesses Within Annexation Request Business Name Type of Business Milestone Development General Commercial • W:\Land\1326\Annexations\1326-0006 Milestone Annexation\Milestone mudform 080315.xIsx City of Pearland In-City MUD Data Form MUD#Harris County 509 August 3,2015 Anticipated Future Annexation Requests Projected General Tract Description Area(Acres) Lots • • W:\Land\1326\Annexations\1326-0006 Milestone Annexation\Milestone mudform 080315.xlsx IIII I1'= — Ull him _ L�. _ I—. , _ ..,.... .,1 ,— _,_____ _, .,...,s— vii �� S AM SCALE: �.J�` r '"sr ■ \+ ilt 'II1IIII1 \• � ,.. 1"v 2640' i - �� wind t1111 .. da" 0- , III slll' �, 04 I o Will�IiP1�00!!Ah re r �) ��� E1 � � ieiiinoiiw �yi. 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' ° '••; ( .• 1; N. , wwWile'renre r- r-i .0 t tt Flowering Sh f 41/11* ••-• t.' ::: ..n, , ' ". 411/1M1r 7/ 4.N1'1. ' 4- 1:" ,:- -'::*- "1',••;,•••,,i,'•.- 44.* .• • .'" A •"-.7,, .,•• ."' • ,!!!!:• '2'- .._ "Ini! "-.• `'..x.z 1 l' --- ' ' ,'.."*.t...',7• tliti:r..:--*:3:-:•:1: n.iimen al T','•rir.'',..Pivireeidrs sn-- . - ',-7."..1..,:".. - •'.'•iovie., wig .' .Perennial C.. ' _ ,, . . ic„,....., — ,, .Multi-Tenant Sign ''led 0 Sign - ._ _,,......-____, ?- ..A ial Color I. Fuel.P tt. .,,-- . Exhibit Proposed Barry Rose --.1..$:,. •..__'"------. F;F-.7.M.:7..7.....a Pubic Infrastructure Pearland Parkway Developnaen PURL1C ST'oRM Coco..4+4 Fr,-.7.'.77:7•,7,: City of Pearland,Texas 4!) Inni =--- On-site Utilities Site MUD Annexed into MUD? Water* Sewer Storm Notes Kroger at Shadow Creek Yes; 26 Public Public Private Water is Fire Line HEB at SH288 Yes; 35 Public Public Public Water is Fire Line HEB at Pearland Pkwy No Public Private Private Water is Fire Line Kroger at Cullen No Private Private Private Kroger at Barry Rose No Private Private Private Sam's Club No Public Private Private Water is Fire Line COSCO Yes; 34 Private Private Public Pearland Town Center No Public Private Private Water is Fire Line *The waterlines in these instances are public because they are fire lines. Prior to 2014 all fire lines were put in a public easement to be owned and maintained by the City. This practice was based on the desire have the City inspect those lines and hydrants on a regular basis to ensure that the were functional when needed by the Fire Department. In changing to the new practice of private fire lines,the lines are now subject to the annual Fire Marshall inspection,which is a more frequent inspection than those conducted by City personnel on the public hydrants. This new practice is more consistent with how most other communities handle fire lines and reduces the public burden required to maintain and inspect lines that only serve private businesses. Tax Reimbursement Agreement This Tax Reimbursement Agreement ("Agreement") is made and entered into effective as of April 9.7 , 2016 ("Effective Date"), by and between the City of Pearland, Texas, a municipal corporation and home-rule city of the State of Texas ("City"), KSTX PEARLAND PKWY, LLC, a Texas limited liability company ("KSTX"), and KROGER TEXAS, L.P. an Ohio limited partnership ("Kroger"). Recitals Whereas, KSTX owns several tracts of land of approximately 2.583 acres, 2.0520 acres, 1.083 acres, 0.992 acres, and 4.221 acres ("KSTX Property") located within the boundaries of the City and more accurately described in Exhibit "A-1" attached hereto; and Whereas, Kroger owns two tracts of land of approximately 12.96 acres and 1.50 acres ("Kroger Property") located within the boundaries of the City and more accurately described in Exhibit "A-2" attached hereto; and Whereas, the KSTX Property and the Kroger Property may be collectively referred to herein as the "Property". Whereas, KSTX and Kroger may be collectively referred to herein as the "Owners" and singularly as an "Owner" herein. Whereas, the City has conditionally approved the annexation of the Property into the boundaries of Harris-Brazoria County Municipal Utility District No. 509 ("District"); and Whereas, the City, as consideration for its agreement to consent to the annexation of the Property into the boundaries of the District, desires to negotiate an annual "Tax Reimbursement Agreement" for the Property to offset the Annual Payment of ad valorem taxes made by City to the District in accordance with the First Amended Utility Agreement ("Amended Utility Agreement") attached hereto as Exhibit "B." Now, therefore, the City, KSTX and Kroger hereby agree as follows: Section 1. Pursuant to City Resolution R2015-122, City consented to the conditional annexation of the Property into the District, and this Agreement shall serve as consideration that condition No. 3 of the Resolution has been fulfilled. Section 2. Each year, for the life of the District and following the date of execution of this Agreement, the Owners agree to make a "Reimbursement of Taxes" ("Annual Reimbursement Amount") to the City equal to the Annual Payment made by City to the District in accordance with the Amended Utility Agreement. The Annual Reimbursement Amount shall not exceed the amount of $0.10 per $100 of assessed valuation of the Property as determined by the Brazoria County Tax Assessor- Collector. Section 3. The Annual Reimbursement Amount shall be due on or before January 31st each year. If any Owner 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 10% per annum, however, interest shall not accrue until after the City has provided the Owner with written notice of the late payment and provided the Owner ten (10) days to cure. Section 4. 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 the breach is cured to the reasonable satisfaction of the complaining party within 30 days of the receipt of such notice. Upon a breach of this Agreement, the non-defaulting Party, in any court of competent jurisdiction, by an action or proceeding at law or in equity, may secure the specific performance of the covenants and agreements herein contained, may be awarded damages for failure of performance, or both. Except as otherwise set forth herein, no action taken by a party pursuant to the provisions of this Section or 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 shall be cumulative and nonexclusive 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. Section 5. 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 all, or a portion of the Property described herein, whether by descent, demise, purchase, gift or otherwise. This Agreement and the benefits and obligations created hereby shall inure to the benefit of and be binding upon the parties hereto and their successors, transferees and assigns; provided, however, that if any Owner sells any portion or all of its interest in the Property, then the selling Owner shall thereupon be released and discharged from any and all future obligations under this Agreement as such Owner in connection with the portion of the Property sold by it. Any purchaser of all or any portion of the Property assumes and agrees to be bound by the covenants and agreements of this Agreement that apply to an Owner, as same may be amended from time to time, by its acceptance of its deed of same. Section 6. This Agreement constitutes the entire understanding and agreement of the parties as to the matters set forth herein. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by all of the parties hereto. Section 7. No assignment by a party hereto of any rights under or interests in the Agreement will be binding on another party hereto without the written consent of the other party. 2 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 7. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in Brazoria County, Texas. Venue for any action arising under this Agreement shall lie in the state district courts of Brazoria County, Texas. Section 8. All notices required to be given under this Development Agreement shall be given in writing and shall be effective when actually delivered or when deposited in the United States mail, first class, postage prepaid, addressed to the party to whom the notice is to be given at the addresses shown below. Any party may change its address for notices under this Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's address. Upon the sale of any portion of the Property, the new Owner shall send written notice of its notice address to the other Owners of the Property and the City. For notice purposes, each party agrees to keep the other informed at all times of its current address: If to City: City of Pearland Attn: City Manager 3519 Liberty Drive Pearland, TX 77581 If to KSTX: do Gulf Coast Commercial Group, Inc Attention: B. Patrick Egan 3120 Rogerdale, Suite 150 Houston, TX 77042 With a copy to: Moody Law Group, PLLC Attn: John S. Moody, Jr. 3003 W. Alabama Houston, Texas 77098 If to Kroger: Kroger Food Stores do Real Estate Department 19245 David Memorial Dr. Shenandoah, Texas 77385 and to: The Kroger Co. do Law Department 1014 Vine Street Cincinnati, OH 45202-1100 3 Section 9. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which shall constitute one and the same document. [Signatures to Follow on the Next Page] 4 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 P ARLAND TEXAS By: City M ager ATTEST: By: i,- % a. ..._ / SefarTy / J 5 KSTX PEARLAND PKWY, LLC a Texas limited liability company By: --TLI6- Name: 1ilom if jj. L ,cr' Title: pices N T ATTEST: By: �a NIA✓ S. ✓4 O ob Title: A 772Ph L 6`Z 6 KROGER: KROGER TEXAS L.P., an Ohio limited partnership By: K' Ohio corplati. , i s general partner By: Rick J. andrum, Vice President ATTEST: By: O p• k-}117-) Title: Dorot . Roberts Assistant Secretary 7 MAINTENANCE AGREEMENT This Maintenance Agreement (this "Maintenance Agreement") is made and entered into as of April /4, 2016 but to be effective as of the "Effective Date" defined below, by and between The City of Pearland (the "City"), a political subdivision of the State of Texas, and PEARLAND PKWY PROPERTY OWNERS ORGANIZATION, INC (the "Association"). RECITALS WHEREAS, the City was created and organized, among other purposes, for the purpose of controlling, storing, preserving and distributing the storm and flood waters of the City, and the reclamation and drainage of the land located within its boundaries. In order to carry out these purposes, the City has acquired certain property within the City, together with all detention and drainage facilities located thereon (the "Facilities"), such Facilities are described in Exhibit A; and WHEREAS, the City Council of the City has determined that it is in the City's best interest to contract with the Association to maintain the Facilities;and WHEREAS, the Association hereby agrees to maintain the Facilities that serve in accordance with the terms and conditions of this Maintenance Agreement; and WHEREAS, Harris-Brazoria County Municipal Utility District 509 (the "District") owns or will own the Facilities and has contracted with the Association to maintain the Facilities pursuant to a separate maintenance agreement between the District and the Association; and WHEREAS, upon the dissolution of the District, the City will own and operate the Facilities and the City desires to enter into this Maintenance Agreement so that the Association is responsible for maintenance of the Facilities in accordance with this Maintenance Agreement. AGREEMENT Now therefore, for and in consideration of the mutual promises, covenants, benefits, and obligations herein set forth, the City and the Association hereby agree and contract as follows: Section 1: The City has established a routine maintenance schedule for the Facilities, as outlined in Exhibit B attached hereto (the "Maintenance Schedule"). 1 The Association agrees to contract with an unrelated qualified party (the "Provider") at its sole cost and expense for the provision of services described in the Maintenance Schedule. Section 2: The City, in its sole discretion, shall have the right, but not the obligation, to perform any improvements, maintenance, repairs or modifications to the Facilities (including, without limitation, those listed in Section 1 or 3 hereof). The City may perform same any time without notice to the Association. The Association may not limit the City's ability to exercise its rights with respect to the Facilities. Section 3: The Association may, at its sole cost and expense, perform additional maintenance of the Facilities that are not otherwise part of the Maintenance Schedule. Additional maintenance may include, but is not limited to, the following: a. any additional erosion prevention around the Facilities required to prevent the unnecessary erosion of silt and dirt into the Facilities; b. maintaining and repairing bulkheads, if any, that surround some or all of the Facilities and lake amenity items within the Facilities; c. mowing, cleaning, and other work needed to control vegetation and/or landscaping in and around the Facilities; d. operating and maintaining any ramps, access structures, benches and recreational areas surrounding the Facilities, but under no circumstances may the Association charge a fee to users or restrict access; e. installing and maintaining any landscaping on the Facilities; f. maintaining all irrigation systems located on the Facilities in proper working order, and utilizing a state licensed irrigator to perform all maintenance and repair work; and g• any other maintenance related to the use of the Facilities for detention or drainage conveyance. Section 4: The Association shall not construct or install any structures, benches, trees, landscaping or other improvements on the Facilities without first obtaining the written consent of the City. In performing any functions related to the 2 detention and drainage features of the Facilities, the City may remove, displace, damage or otherwise disrupt structures, benches, trees, landscaping or other improvements constructed or installed by the Association on the Facilities. The Association acknowledges and agrees that the City shall have no obligation to repair or restore such improvements to their original condition. Section 5: The Association shall secure, and keep current, comprehensive general liability insurance coverage relating to the Association's use of the Facilities pursuant to this Agreement in the minimum amount of $1,000,000 per occurrence and shall annually provide a copy of the policy to the City. Such policy shall name the City as an additional insured party. In addition, the insurance required hereunder shall be endorsed to provide a waiver of subrogation in favor of the City and the City's agents and employees and to provide that such insurance is primary coverage and not in excess of any other insurance available to the City, and without rights of contribution or recovery against the City or from any such other insurance available to the City. The Association, and not the City, shall be responsible for paying the premiums and deductibles, if any, that may from time to time be due under all of the insurance policies required of the Association. Section 6: TO THE FULLEST EXTENT PERMITTED BY LAW, THE ASSOCIATION, FOR ITSELF AND ITS SUCCESSORS AND ASSIGNS, AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS THE CITY AND ITS OFFICERS, DIRECTORS, REPRESENTATIVES, AND AGENTS, FROM EVERY LOSS, DAMAGE, INJURY, COST, EXPENSE, CLAIM, JUDGMENT, OR LIABILITY OF EVERY KIND OR CHARACTER (INCLUDING SPECIFICALLY ATTORNEYS' FEES, COURT COSTS AND OTHER EXPENSES INCURRED IN ENFORCING THIS INDEMNITY PROVISION), WHETHER IN CONTRACT, TORT, OR OTHERWISE, WHICH ARISES DIRECTLY OR INDIRECTLY FROM THE ASSOCIATION'S WILLFUL, INTENTIONAL, RECKLESS OR NEGLIGENT (WHETHER ACTIVE, PASSIVE, OR GROSS) ACTS OR OMISSIONS RELATED TO OR ARISING FROM THIS AGREEMENT. THIS INDEMNITY AND HOLD HARMLESS PROVISION WILL APPLY WHETHER SUCH ACTS OR OMISSIONS ARE CONDUCTED BY THE ASSOCIATION, ITS AGENTS, DIRECTORS, EMPLOYEES, REPRESENTATIVES,OR CONTRACTORS. THIS INDEMNITY AGREEMENT IS INTENDED TO MEET THE TEXAS "EXPRESS NEGLIGENCE RULE" BECAUSE THE ASSOCIATION AGREES THAT IT APPLIES AND IS ENFORCEABLE EVEN AS TO LOSSES, DAMAGES, INJURIES, EXPENSES, CLAIMS, CAUSES OF ACTION, JUDGMENTS OR LIABILITIES JOINTLY OR CONCURRENTLY CAUSED BY THE NEGLIGENCE OR OTHER FAULT OF THE CITY. THE TERM "FAULT" IN THE PREVIOUS SENTENCE INCLUDES THE VIOLATION OR BREACH BY THE CITY OF ANY COMMON LAW DUTY, ANY TERM OF THIS AGREEMENT, OR ANY 3 STATUTE OR REGULATION. THIS INDEMNIFICATION OBLIGATION IS IN ADDITION TO ALL OTHER LEGAL, EQUITABLE, OR INDEMNIFICATION REMEDIES AVAILABLE TO THE CITY. THIS INDEMNIFICATION OBLIGATION SURVIVES THE TERMINATION OR EXPIRATION OF THIS AGREEMENT. Section 7: This Maintenance Agreement shall be for the sole and exclusive benefit of the City and the Association and shall not be construed to confer any benefit or right upon any customers, residents, or members of the City or the Association, or on any other party. Section 8: The Association may not prohibit access by the general public to the Facilities, or charge a fee for the use thereof, except the Association may charge assessments and other fees to the property owners who use the Facilities for detention and drainage purposes per the terms of the other documents of the Association. Section 9: This Maintenance Agreement is not assignable by any party hereto except with the prior written consent of the other party. Section 10: This Maintenance Agreement constitutes the entire agreement between the parties relative to the subject matter hereof. There have been and are no agreements, covenants, representations, or warranties between the parties other than those expressly stated or provided for herein. Section 11: The term of this Maintenance Agreement shall commence on the date the District is dissolved and the City owns the Facilities (the "Effective Date") and shall continue for as long as the Facilities are used for detention purposes. Notwithstanding any provision hereof, the City may terminate the Maintenance Agreement for any reason by giving the Association at least sixty (60) days advance written notice. Section 12: The failure of either party hereto to insist, in any one or more instances, upon performance of any terms, covenants or conditions of this Maintenance Agreement, shall not be construed as a waiver or relinquishment of the future performance of any such term, covenant or condition by the other party hereto, but the obligation of such other party with respect to such future performance shall continue in full force and effect. Section 13: In addition to any other available remedies, the parties hereto shall have the right to injunctive relief in the event a party hereto violates any term of this Maintenance Agreement. Section 14: This Maintenance Agreement shall be subject to amendment, 4 change or modification only by a written instrument signed by the parties hereto. IN WITNESS WHEREOF, the parties have executed this Maintenance Agreement in multiple copies, each of which shall be deemed an original as of the date first written above. [EXECUTION PAGES FOLLOW] 5 CITY OF PEARLAND By: 17,../ Name: d Jc� Title: ATTEST: By: N Yo&' G l deege/A1 ' Title: t2/7-. 5 e -r4,$e (SEAL) ' 6 ASSOCIATION PEARLAND PKWY PROPERTY OWNERS ORGANIZATION,INC. A Texas non-profit corporation By: Name: Mick c.Liri� Title: Vice_ Q(esjc�e.`n+ 7 EXHIBIT A-FACILITIES 8 EXHIBIT B City Maintenance Schedule The following minimum maintenance of the Facilities shall be provided to maintain the Facilities'primary use for retention, detention and drainage: a. mowing (at least 12 times per year), overseeding (at least once per year) and fertilizing(at least twice per year); b. excavating or otherwise maintaining the Facilities to prevent excess silting that would minimize the use of the Facilities for retention, detention or drainage;and c. erosion prevention around the Facilities to prevent the unnecessary erosion of silt and dirt into a detention or drainage feature of the Facilities. 9