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HomeMy WebLinkAboutCity Packets - City Council - 09/15/2026 - RegularCITY OF THE COLONY CITY COUNCIL AGENDA TUESDAY, SEPTEMBER 15, 2026 6:30 PM 1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS 1.1 Call to Order 1.2 Invocation 1.3 Pledge of Allegiance to the United States Flag 1.4 Salute to the Texas Flag 1.5 Items of Community Interest 1.6 Receive presentation from the Library regarding upcoming events and activities. (Charters) 2.0 CITIZEN INPUT 3.0 WORK SESSION 3.1 Council to provide direction to staff regarding future agenda items. (Council) 4.0 CONSENT AGENDA 4.1 Consider approving City Council Regular Session meeting minutes from September 1, 2026. (Stewart) 4.2 Consider approving an ordinance budget amendment to increase the fiscal year 2026 budget of the Fleet Division of the Public Works Department in the General Fund. (Miller) 4.3 Consider approving a resolution authorizing the Mayor to execute a legislative consulting agreement with Desk 138, LLC in the amount of $72,000.00. (Shallenburger) TO ALL INTERESTED PERSONS Notice is hereby given of a REGULAR SESSION of the CITY COUNCIL of the City of The Colony, Texas to be held at 6:30 PM on TUESDAY, SEPTEMBER 15, 2026 at CITY HALL, 6053 MAIN STREET, at which time the following items will be addressed: This portion of the meeting is to allow up to five (5) minutes per speaker with a maximum of thirty (30) minutes for items not posted on the current agenda. The council may not discuss these items, but may respond with factual data or policy information, or place the item on a future agenda. Those wishing to speak shall submit a Request Form to the City Secretary. The Work Session is for the purpose of exchanging information regarding public business or policy. No action is taken on Work Session items. Citizen input will not be heard during this portion of the agenda. The Consent Agenda contains items which are routine in nature and will be acted upon in one motion. Items may be removed from this agenda for separate discussion by a Council member. 1 4.4 Consider approving a resolution authorizing the City Manager to execute a contract for services with Tod-Co Consultative Services to provide assistance in the development of a Hotel/Convention Center in the amount of $60,000.00. (Shallenburger) 4.5 Consider approving a resolution authorizing the City Manager to execute a Municipal Building #5 Lease Agreement with Lakeside Community Theater for the Fiscal Year 2026-27. (Shallenburger) 4.6 Consider approving a resolution authorizing the City Manager to execute a Government Center Lease Agreement with American Legion Holley-Riddle Post 21 for the Fiscal Year 2026-27. (Shallenburger) 4.7 Consider approving a resolution authorizing the City Manager to execute a Lease Agreement with The Colony Chamber of Commerce for a space in the Library Building for the Fiscal Year 2026-27. (Shallenburger) 5.0 REGULAR AGENDA ITEMS 5.1 Discuss and consider all matters incident and related to 'The Colony Community Development Corporation Sales Tax Revenue Bonds, Series 2026,' including the approval of the issuance of such Bonds by The Colony Community Development Corporation and the approval of the bond resolution to be adopted by the Corporation in connection therewith. (Bredehoeft) 5.2 Conduct a public hearing, discuss and consider approving an ordinance regarding amendments to Planned Development 14 (Lone Star Car Wash), amending Section 3.2.a to include Auto parts and accessory sales (inside only) on Lot 1R2R (PT), Block 1 Spotless Addition by Specific Use Permit. The subject site contains approximately 0.44 acres and is located approximately 460 feet south of the southwest intersection of Main Street and Ridgepointe Drive within Planned Development 14 and the Gateway Overlay District. (Williams) 5.3 Discuss and consider approving an ordinance regarding the Site Plan application of "Amarco HQ," a 17,679 sq ft office building. The subject site contains approximately 1.371 acres (59,736 sq ft) and is located at Lot 1, Block A, Amarco Addition within the Business Park (BP) Zoning District and the Gateway Overlay District. (Williams) 5.4 Conduct a public hearing, discuss and consider approving an ordinance levying of the Public Improvement District Annual Assessment on properties located within the City of The Colony Public Improvement District No. 1 for the Fiscal Year 2026-27. (Maurina) 5.5 Discuss and consider approving an ordinance amending the Code of Ordinances Chapter 18 by adding a new article VII Sections 18-130 to 18-133 entitled "Automobile Fatality Memorial Marker" by establishing regulations for the placement of automobile fatality memorial markers on city streets within the City of The Colony. (Perez) 6.0 EXECUTIVE SESSION 6.1 Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas Government Code to receive legal advice from its attorney regarding pending litigation: TOCA Colony, LLC v. Blue Sky Sports Center, LP, and the City of The Colony, Texas. 2 6.2 Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). 7.0 EXECUTIVE SESSION ACTION 7.1 Any action as a result of executive session regarding pending litigation: TOCA Colony, LLC v. Blue Sky Sports Center, LP, and the City of The Colony, Texas. 7.2 Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). _________________________________________ Tina Stewart, TRMC, CMC, City Secretary EXECUTIVE SESSION NOTICE Pursuant to the Texas Open Meeting Act, Government Code Chapter 551 one or more of the above items may be considered in executive session closed to the public, including but not limited to consultation with attorney pursuant to Texas Government Code Section 551.071 arising out of the attorney's ethical duty to advise the city concerning legal issues arising from an agenda item. Any decision held on such matter will be taken or conducted in open session following the conclusion of the executive session. ADJOURNMENT If you wish to address the City Council in person, you can do so by attending the meeting at City Hall. If you wish to have comments added to the council minutes about issues on the Agenda, you may submit those comments to the City Secretary Office via email or on the city website. Persons with disabilities who plan to attend this meeting who may need auxiliary aids such as interpreters for persons who are deaf or hearing impaired, readers or, large print are requested to contact the City Secretary's Office, at 972-624-3105 at least two (2) working days prior to the meeting so that appropriate arrangements can be made. CERTIFICATION I hereby certify that above notice of meeting was posted outside the front door of City Hall by 5 p.m. on the 9th day of September 2026. 3 Agenda Item No: 1.5 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Announcement Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Items of Community Interest Background: 4 Agenda Item No: 1.6 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: Library Item Type: Announcement Agenda Section: routine announcements, recognitions and proclamations Suggested Action: Receive presentation from the Library regarding upcoming events and activities. (Charters) Background: 5 Agenda Item No: 3.1 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: work session Suggested Action: Council to provide direction to staff regarding future agenda items. (Council) Background: 6 Agenda Item No: 4.1 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Minutes Agenda Section: consent agenda Suggested Action: Consider approving City Council Regular Session meeting minutes from September 1, 2026. (Stewart) Background: Attachments: September 1, 2026 DRAFT Minutes.docx 7 1 These items are strictly public service announcements. Expressions of thanks, congratulations or condolences; information regarding holiday schedules; honorary recognition of city officials, employees or other citizens; reminders about upcoming events sponsored by the City or other entity that are scheduled to be attended by a city official or city employee. No action will be taken and no direction will be given regarding these items. MINUTES OF CITY COUNCIL REGULAR SESSION HELD ON SEPTEMBER 1, 2026 The Regular Session of the City Council of the City of The Colony, Texas, was called to order at 6:30 p.m. on the 1st day of September 2026, at City Hall, 6053 Main Street, The Colony, Texas, with the following roll call: Richard Boyer, Mayor Judy Ensweiler, Councilmember Robyn Holtz, Deputy Mayor Pro Tem Brian R. Wade, Councilmember Dan Rainey, Councilmember Perry Schrag, Councilmember Joel Marks, Mayor Pro Tem Present Present Present Present Present Present Present And with 7 council members present a quorum was established and the following items were addressed: BUDGET STATEMENT Effective September 1, 2025, a taxpayer impact statement is required by Government Code Section 551.043(c) to be posted on the notice of a meeting at which a governmental body will discuss or adopt a budget for the governmental body. This Taxpayer Impact Statement shows for the median-value homestead property in the City, a comparison of the property tax bill in dollars pertaining to the property for the current fiscal year to an estimate of the property tax bill in dollars for the same property for the upcoming fiscal year. Description Current Fiscal Year Upcoming Fiscal Year Current Rate No-New-Revenue Rate Proposed Rate Tax Rate (per $100 of value) $0.630000 $0.653703 $0.630000 Median Homestead Taxable Value $391,480 $375,202 Tax on Median Homestead $2,466.32 $2,452.71 $2,363.77 1.0 ROUTINE ANNOUNCEMENTS, RECOGNITIONS and PROCLAMATIONS 1.1 Call to Order Mayor Richard Boyer called the meeting to order at 6:30 p.m. 1.2 Invocation Councilmember Perry Schrag delivered the invocation. 1.3 Pledge of Allegiance to the United States Flag The Pledge of Allegiance to the United States Flag was recited. 8 City Council – Regular Meeting Agenda September 1, 2026 Page| 2 1.4 Salute to the Texas Flag The Salute to the Texas Flag was recited. 1.5 Proclamation recognizing September 2026 as United Way of Denton County - United is The Way Month. Mayor Richard Boyer proclaimed September 2026 as United is The Way Month. Proclamation was accepted by Melinda Galler United Way Board Member. 1.6 Proclamation recognizing the first full week of September 2026 as "Payroll Week". Mayor Richard Boyer proclaimed the first week in September 2026 as "Payroll Week." Proclamations were accepted by Laura Esquivel, Director of Education of the Payroll Organization and Dolores Hunter, Payroll Manager for the City of The Colony. 1.7 Items of Community Interest 1. Councilmember Brian R. Wade announced the “Save the Date” for the 1st Responders/City Workers Appreciation Lunch on September 26th from 11 a.m. to 5 p.m. 2. Councilmember Judy Ensweiler announced the Friendship Baptist Church Food Drive on the 3rd Saturday of the month. Volunteers are needed. 1.8 Receive presentation from Parks and Recreation regarding upcoming events and activities. Aquatic Park Manager Kirstin Wilson provided upcoming events and activities to the council. 2.0 CITIZEN INPUT None 3.0 WORK SESSION 3.1 Receive a presentation from Schneider Electric on Energy Efficiency Audit and discuss next steps. Assistant City Manager Tim Miller provided an overview on the item. Charlie and Brian Davis with Schneider Electric presented the item to council. Council provided discussion on the item with direction for staff to bring back this item with a contract for approval on October 7, 2026. 3.2 Council to provide direction to staff regarding future agenda items. None 4.0 CONSENT AGENDA Motion to approve all items from the Consent Agenda with the exception of Item No. 4.4.- Perry Schrag, Councilmember; second by Judy Ensweiler, Councilmember, motion carried with all ayes. 9 City Council – Regular Meeting Agenda September 1, 2026 Page| 3 4.1 Consider approving City Council Regular Session meeting minutes from August 18, 2026. 4.2 Consider approving Council expenditures for May and June 2026. 4.3 Consider accepting Pamela De Santiago's resignation from the KTCB Board. ***Item No. 4.4 was pulled from the Consent Agenda for separate discussion. *** 4.4 Consider approving an ordinance authorizing the Mayor to execute a Negotiated Settlement Agreement between Atmos Cities Steering Committee and Atmos Energy Corporation, MID-TEX Division regarding the company's 2026 Rate Review Mechanism Filing (RRM). Assistant City Manager Tim Miller provided an overview on the item to council. Motion to approve - Judy Ensweiler, Councilmember; second by Brian R. Wade, Councilmember, motion carried with all ayes. ORDINANCE NO. 2026-2656 4.5 Consider approving a resolution adopting the City of The Colony's Investment Policy. RESOLUTION NO. 2026-058 4.6 Consider approving a resolution authorizing the Mayor to execute Amendment No. 1 to an Interlocal Cooperation Agreement with Lewisville Independent School District (LISD) for a Fiber Optic Cable Lease to align annual payment with the City's fiscal year. RESOLUTION NO. 2026-059 5.0 REGULAR AGENDA ITEMS 5.1 Discuss and consider an ordinance regarding the Site Plan application of "Gateway Centre," an approximately 73,000 square foot mixed-use [office warehouse retail] development located on the south side of Memorial Drive between Standridge Drive and Market Street. Planning Director Isaac Williams presented the proposed ordinance to council. Council provided discussion on the item. Motion to approve - Joel Marks, Mayor Pro Tem; second by Perry Schrag, Councilmember, motion carried with all ayes. ORDINANCE NO. 2026-2657 5.2 Discuss and consider approving an ordinance adopting the City of The Colony Fiscal Year Budget beginning October 1, 2026, and ending September 30, 2027. Assistant City Manager Tim Miller provided an overview on the proposed ordinance to council. 10 City Council – Regular Meeting Agenda September 1, 2026 Page| 4 Council provided discussion on the item. Motion to approve as revised- Perry Schrag, Councilmember; second by Brian R. Wade, Councilmember, motion carried with all ayes with Judy Ensweiler, Councilmember voting no. ORDINANCE NO. 2026-2658 5.3 Discuss and consider an ordinance adopting a tax rate and levying taxes for Fiscal Year 2027 at a maintenance and operations rate of $0.487031 and a debt rate of $0.142969 for a total rate of $0.630000 per $100 of taxable value on the real and personal property located within the City of The Colony as of January 1, 2026. Assistant City Manager Tim Miller provided an overview on the proposed ordinance to council. Council provided discussion on the item. Motion to approve with a quarter cent reduction to the current tax rate - Joel Marks, Mayor Pro Tem; second by Brian R. Wade, Councilmember, motion carried with a ll ayes with Judy Ensweiler, Councilmember, Robyn Holtz, Deputy Mayor Pro Tem voting no. ORDINANCE NO. 2026-2659 5.4 Discuss and consider approving a resolution amending the Fiscal Year 2025-2026 Master Fee Schedule for the Fiscal Year 2026-2027, effective October 1, 2026. Assistant City Manager Tim Miller presented the proposed resolution to council. Mayor Pro Tem Joel Marks stepped out at 7:38 p.m. and returned at 7:42 p.m. Motion to approve - Dan Rainey, Councilmember; second by Brian R. Wade, Councilmember, motion carried with all ayes. RESOLUTION NO. 2026-060 5.5 Discuss and consider approving a resolution accepting a preliminary annual service and assessment plan update for the City of The Colony Public Improvement District No. 1 for Fiscal Year 2026-27, including a proposed assessment roll, and calling a public hearing for September 15, 2026 concerning the levy of special assessments against properties that are specially benefitted by the public improvements and supplemental services being provided for Fiscal Year 2026-27. Executive Business Liaison Jeremie Maurina presented the proposed resolution to council. Motion to approve - Perry Schrag, Councilmember; second by Dan Rainey, Councilmember, motion carried with all ayes. 11 City Council – Regular Meeting Agenda September 1, 2026 Page| 5 RESOLUTION NO. 2026-061 Executive Session was convened at 7:46 p.m. 6.0 EXECUTIVE SESSION ***Item No. 6.1 pulled from Executive Session with no discussion*** 6.1 Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas Government Code to receive legal advice from its attorney regarding pending litigation: TOCA Colony, LLC v. Blue Sky Sports Center, LP, and the City of The Colony, Texas. ***Item No. 6.2 pulled from Executive Session with no discussion*** 6.2 Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). 6.3 Council shall convene into a closed executive session pursuant to Section 551.074 of the Texas Government Code to deliberate the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. Regular Session was reconvened at 8:40 p.m. 7.0 EXECUTIVE SESSION ACTION 7.1 Any action as a result of executive session regarding pending litigation: TOCA Colony, LLC v. Blue Sky Sports Center, LP, and the City of The Colony, Texas. No Action 7.2 Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). No Action 7.3 Any action as a result of executive session regarding the evaluation, reassignment, duties, discipline, or dismissal of the City Secretary. Motion to amend the contract of the City Secretary based on the terms discussed in executive session - Brian R. Wade, Councilmember; second by Perry Schrag, Councilmember, motion carried with all ayes. 12 City Council – Regular Meeting Agenda September 1, 2026 Page| 6 ADJOURNMENT With there being no further business to discuss, the meeting adjourned at 8:42 p.m. APPROVED: ________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary 13 Agenda Item No: 4.2 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: Public Works/Water Distribution Item Type: Ordinance Agenda Section: consent agenda Suggested Action: Consider approving an ordinance budget amendment to increase the fiscal year 2026 budget of the Fleet Division of the Public Works Department in the General Fund. (Miller) Background: The current year budget for fuel was based on $1.80 per gallon and $2.30 per gallon for gasoline and diesel, respectively. Fuel prices increased starting in March 2026 with the conflict in Iran and the shipping disruptions in the Strait of Hormuz. Fuel prices have remained elevated since. Currently, we are averaging $3.50 per gallon and almost $4 per gallon for gasoline and diesel, respectively. The remainder of this request reflects increases to the cost of vehicle maintenance due to increases to both the cost of parts and the frequency of parts needing to be replaced. Attachments: Budget Change Form.pdf Ord. 2026-xxxx- Budget Amendment.docx 14   Budget Amendment Budget Adjustment Fund Dept Object Project Account Description Amount Fund Object Account Description Amount Increase / (Decrease)Increase / (Decrease) 100 35 9006 00000 Contingency (300,000) 100 15 6340 00001 Diesel Fuel 100,000 100 15 6340 00002 Gasoline 100,000 100 15 6440 00000 Vehicle Maintenance 75,000 100 15 6440 00001 Vehicle Maintenance - Fire 25,000 Expenditure -$ Revenue -$ Interfund Transfers Out -$ Interfund Transfers In -$ 100 Fund Balance - Notes - Positive numbers increase the budget, negative numbers decrease the budget. - Round all amounts to the nearest whole dollar. - Change in Requirements must equal Change in Resources. Ending Fund Balance -$ Transfers In must equal Transfers Out. Change in Budgeted Requirements -$ Change in Budgeted Resources -$ Explanation Approved By Signature Finance Department: Department Director: City Manager's Office: Budget Change Form Increase in appropriation / spending authority within a department of the General Fund, Parks Fund, or Utility Fund, or, for all other funds, within the fund. Transfer of appropriation / spending authority within a department of the General Fund, Parks Fund, or Utility Fund, or, for all other funds, within the fund. The current year budget for fuel was based on $1.80 per gallon and $2.30 per gallon for gasoline and diesel, respectively. Fuel prices increased starting in March 2026 with the conflict in Iran and the shipping disruptions in the Strait of Hormuz. Fuel prices have remained elevated since. Currently, we are averaging $3.50 per gallon and almost $4 per gallon for gasoline and diesel, respectively. The remainder of this request reflects increases to the cost of vehicle maintenance due to increases to both the cost of parts and the frequency of parts needing to be replaced. 15 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2026 - _______ AMENDING THE FISCAL YEAR 2025-2026 BUDGET AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING ORDINANCE 2025-2619, ADOPTING THE FISCAL YEAR 2025-2026 BUDGET OF CITY OF THE COLONY, TEXAS BY PROVIDING FOR AN AMENDMENT TO THE FISCAL YEAR 2025- 2026 OPERATING BUDGET; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR A SAVINGS CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Council of the City of The Colony is conducting business pursuant to a budget for fiscal year 2025-2026, heretofore previously adopted by Ordinance No. 2025-2619 on September 2, 2025; and WHEREAS, Section 102.010 of the Texas Local Government Code authorizes the governing body of a municipality to make changes in the budget for municipal purposes; and WHEREAS, the City Council of the City of The Colony, Texas, finds it in the best interest of the City to increase the budget of the Fleet Division of the Public Works Department in the General Fund by a transfer of contingency budget from the non-departmental classification in the General Fund in the amount of by $300,000; and WHEREAS, the City Council of the City of The Colony, Texas, has reviewed the budget and has determined that a valid municipal purpose is served by such budget amendment. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. INCORPORATION OF PREMISES. That the above and foregoing premises are incorporated into the body of this Ordinance as if copied herein in their entirety. SECTION 2. AMENDMENT AND ADOPTION. That the Budget for the fiscal year ending September 30, 2026, heretofore previously adopted by Ordinance No. 2025-2619 duly enacted by the City Council of the City of The Colony, Texas, on September 2, 2025, be and is hereby amended as set forth herein, which amendment is hereby, in all respects, finally approved and adopted as so changed; and the same shall be hereby filed with the City Secretary of the City of The Colony. 16 2 SECTION 3. BUDGET AMENDMENT. That the City Council of the City of The Colony, Texas, finds and determines that $300,000 should be transferred from non-departmental contingency within the General Fund to the Fleet Division of the Public Works Department within the General Fund for increased fuel and vehicle maintenance costs as indicated in the budget change form attached hereto as Exhibit A. SECTION 4. SEVERABILITY CLAUSE. It is hereby declared to be the intention of the City Council of The City of The Colony, Texas, that the phrases, clauses, sentences, paragraphs, and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph, or section of this Ordinance should be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, or sections of this Ordinance, since the same would have been enacted by the City Council without incorporation in this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or section. SECTION 5. SAVINGS CLAUSE. All rights and remedies of the City of The Colony, Texas, are expressly saved as to any and all violations of the provisions of any Ordinances affecting budgets, budget approval or adoption, which have accrued at the time of the effective date of this Ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such Ordinances, same shall not be affected by this Ordinance but may be prosecuted until final disposition by the courts. SECTION 6. EFFECTIVE DATE This Ordinance shall be in full force and effect from and after its date of passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15th DAY OF SEPTEMBER 2026. __________________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ______________________________________ Tina Stewart, TRMC, CMC, City Secretary 17 3 APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 18 Agenda Item No: 4.3 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the Mayor to execute a legislative consulting agreement with Desk 138, LLC in the amount of $72,000.00. (Shallenburger) Background: Attachments: Lobbying Agreement 2026 - 072926.pdf Res. 2026-xxx Desk 138 LLC Consulting Services Fourth Amendment.docx 19 LOBBYIST AGREEMENT (1) PARTIES This Lobbyist Agreement (“Agreement”) is entered into by and between Desk 138, LLC, a Texas based business consulting and public affairs firm, with its principal office located at 2011 Shadowbrook Circle, Round Rock, Texas 78681 (“Desk 138”), and The City of The Colony, with its principal office located at 6053 Main Street, The Colony, Texas 75056 (“Client”). (2) PURPOSE The purpose of this Agreement is to state the terms and conditions under which Desk 138 will provide lobbying services (“Services”) to Client. (3) TERM OF AGREEMENT The term of this Agreement shall commence on October 1, 2026, and shall continue in full force until September 30, 2027. This Agreement may be renewed by Client for an additional period(s) upon the written mutual agreement of both parties. Either party may terminate the Agreement for any reason, or for no reason, on 60-days’ notice to the other. Services shall be pro-rated through the date of termination. (4) SERVICES Desk 138 shall commit its organizational strength, influence, knowledge, and relationships to advance Client’s agenda and shall perform the following as directed by Client: (a) daily monitoring of legislation which Client identifies as important. (b) lobbying members of the Texas Legislature, legislative committees, state agencies, and other governmental officials to act on Client desires on pending or anticipated issues, studies, legislation, or rule-making that Client identifies as important. (c) assist in communicating Client’s positions on legislation and administrative actions to the 20 Texas Legislature, state agencies, and other governmental officials. (d) perform other lobbying services or governmental contract services as Client may request. (e) Desk 138 further agrees to: (1) perform the professional services in a diligent and professional manner; (2) timely advise Client, on a regular basis, of the progress of legislative or regulatory action in which Consultant is representing Client’s interest under this Agreement; and (3) recommend courses of action on matters in which Consultant represents Client under this Agreement. This Agreement does not include Consultant providing any legal service (5) COMPENSATION Compensation for Services performed under this Agreement will be paid as a monthly retainer in the amount of $6,000.00 (six thousand dollars) beginning October 1, 2026, and continuing until termination of the Agreement. Payment terms shall be 30 days upon receipt of Desk 138’s invoice, with all payments made at the beginning of the month for services to be performed that month. (6) EXPENSES Desk 138 will bill for reasonable travel expenses incurred in the execution of the Agreement and which Client authorizes or approves in advance. Expenses include meals, transportation, and lodging to locations greater than two hundred (200) miles from the Desk 138, LLC principal office location. All incidental costs and out-of-pocket expenses are considered included in the agreed amount of one-half of the monthly retainer. All incidental costs and out-of-pocket expenses are considered included in this Agreement and shall not be billed. (7) RELATIONSHIP The parties understand that Desk 138 is an independent contractor with respect to Client as is not an employee of Client. The client does not provide any fringe benefits, including health insurance benefits, paid vacation, or any other employee benefit, for the benefit of Desk 138, its agents, employees, or contractors. (8) CONFLICT OF INTEREST For the term of this Agreement, Desk 138 agrees not to represent any other interest that would conflict with the interest of Client under this Agreement. If any conflict of interest arises, Desk 138 will promptly notify Client of the conflict, and the conflict will be settled to the satisfaction of Client and in accordance with the rules of the Texas Ethics Commission. (9) CONFIDENTIALITY 21 Desk 138 shall assume that all information it receives about Client, its affiliates and their businesses and industries is confidential. To the maximum extent permitted by law, Desk 138 shall maintain the confidentiality of all such information. (10) OTHER PROVISIONS Political contributions and campaign contributions on behalf of Client are not part of this Agreement. Client understands that Consultant and employees of consultant attend political events and campaign functions, but such activity is solely their own time and neither Consultants nor its employees receive any compensation from Client for such activity. This Agreement is not assignable by either party and is the sole and only agreement between the parties. This Agreement shall be governed by the laws of the State of Texas. Facsimile and digital signatures are accepted as originals. Either party may seek any lawful remedy to enforce the provisions of this Agreement. IN WITNESS WHEREROF, the parties hereto have caused their duly authorized representatives to execute this Agreement as of the date first written above. DESK 138, LLC The City of The Colony By: _____________________________ By: ____________________________ Larry D. Gonzales Name: Troy Powell President Title: City Manager Date: ___________________________ Date: __________________________ 22 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2026 - _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING FOURTH AMENDMENT TO A LEGISLATIVE CONSULTING AGREEMENT WITH DESK 138, LLC, A TEXAS LIMITED LIABILITY COMPANY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of The Colony, Texas, hereby approves the fourth amendment to legislative consulting agreement with Desk 138, LLC, a Texas limited liability company for Legislative Consulting services in the amount of $72,000.00; and WHEREAS, the City Council of the City of The Colony, Texas, authorizes the Mayor to execute the Fourth Amendment to legislative consulting agreement, attached hereto as Exhibit A, and any and all documents related thereto. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1. The findings set forth above are incorporated into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council of the City of The Colony, Texas, hereby authorizes and approves the amendment to the legislative consulting agreement with Desk 138, LLC, a Texas limited liability company for legislative consulting services in the amount of $72,000.00, and authorizes the Mayor to execute said Fourth Amendment to the Agreement, attached hereto as Exhibit A, and any and all documents related thereto. SECTION 3. This Resolution shall become effective from and after its date of passage in accordance with law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 15TH DAY OF SEPTEMBER 2026. Richard Boyer, Mayor City of The Colony, Texas ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: 23 Jeffrey L. Moore, City Attorney 24 Exhibit A [Fourth Amendment to Lobbyist Agreement] 25 Agenda Item No: 4.4 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to execute a contract for services with Tod-Co Consultative Services to provide assistance in the development of a Hotel/Convention Center in the amount of $60,000.00. (Shallenburger) Background: Consider approving a resolution authorizing the City Manager to execute a contract for services with Tod-Co Consultative Services to provide assistance in the development of a Hotel/Convention Center in the amount of $60,000.00. Attachments: Tod Maurina- Independent Contractor Agreement 2026-27 - BES.pdf Res. 2026-xxx Tod-Co Consultative Services.doc 26 INDEPENDENT CONTRACTOR AGREEMENT THIS INDEPENDENT CONTRACTOR AGREEMENT (hereinafter referred to as the “Agreement”) is made and entered to be effective the 1st day of October, 2026, by and between the CITY OF THE COLONY, TEXAS (hereinafter referred to as the “City”), a Texas home-rule municipality, and Tod-Co Consultative Services (hereinafter referred to as “Contractor”), both of which parties hereto understand and agree as follows: WITNESSETH: WHEREAS, it is the desire of the City of The Colony, Texas, to engage the services of Contractor in order to assist in the development of a Hotel/Convention Center (hereinafter referred to as the “Project”). NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained, and hereinbefore stated, the parties hereto agree as follows: A. Term This Agreement shall take effect on October 1, 2026, and shall continue until March 31, 2027 unless terminated under the terms of Section J. below. B. Scope of Work Contractor shall provide the necessary professional services to allow for the development of a hotel/convention center, manage its employees, negotiate acquisition of required real estate, maximize available State statutory rebates, coordinate with the hotel developer, seek alternate/competitive hotel development opportunities, and report to the City regularly on the status of such activities. The Contractor shall also as directed by the City Manager engage in any and all endeavors to enhance development opportunities including but not limited to the acquisition of land, engaging current development partners to develop strategic plans, and to pursue any other projects beneficial to the City. The policy making and governmental functions relating to the Contractor’s efforts shall remain fully vested with the City. Such functions shall include, but not be limited to, making decisions regarding significant capital requirements for projects, approving a major contracting for services or goods; responsibility for the statutory requirements of the State rebates, funding and the like; and any other significant business or policy decisions related to the development of the Hotel/Convention Center or other projects. From time to time as questions with policy implications arise, Contractor shall consult with the City to reach agreement on the degree of involvement the City that may be necessary under this paragraph. In the event the parties are unable to agree, the matter shall be deemed within the oversight and policy function of the City and the City’s decision in the matter shall in all events be controlling. 27 Contractor shall abide by all City rules, regulations and policies as detailed in the City Charter, the Municipal Code, the City Code of Ordinances, state law and as reasonably directed by the City. C. Compensation Contractor shall be compensated in the amount of sixty thousand dollars ($60,000.00) payable in monthly installments of ten thousand dollars ($10,000.00). The first payment shall be due and issued on October 31, 2026, with each subsequent payment made on the last Friday of each month until the final payment is made on March 31, 2027, unless this agreement is terminated under Section J. below. D. Travel Expenses The City agrees to reimburse Contractor for reasonable travel expenses incurred in the scope of his work as outlined herein. Travel expenses shall be preapproved by the City prior to being incurred. Contractor shall request reimbursement by submitting an itemized request, including receipts, to the City. Contractor shall receive additional automobile-related reimbursement. The mileage fee will be equivalent to that established by the Internal Revenue Service. Reimbursement shall be requested through the Deputy City Manager. E. Contractor’s Employees Contractor has and retains full control and supervision of the services performed as described in the Statement of Work and has full control over the employment and compensation and discharge of all persons, other than the City employees, assisting in the performance of the services referenced herein. Contractor shall be solely responsible for all matters relating to payment of wages to its employees, including but not limited to compliance with social security payroll tax withholdings and unemployment compensation. Contractor further agrees to be responsible for its own acts and those of its subordinates, employees and any subcontractors, if any, during the term of this Agreement. Further, Contractor’s relationship to the City is that of an independent contractor, and not an agent, employee or servant. Contractor shall have no authority to bind the City or any of its administrators, officers or employees. In the ordinary course of business, Contractor may perform services for parties other than the City and is not precluded from doing so by this Agreement so long as those services do not conflict with the goals and objectives of the City. F. Business Expenses Contractor shall provide any and all supplies, equipment or other business expenses used for services; however, Contractor shall coordinate with the City the use of any City owned supplies, equipment or services if same are available. 28 G. Liability The City shall not be liable or responsible for any injuries, damages or losses of Contractor during the course and scope of the services performed by Contractor pursuant to this Agreement. Independent Contractor shall defend, indemnify and hold harmless the City and its officers, agents and employees from and against all damages, claims, losses and demands made by Contractor arising out of or resulting from the performance of her services. H. Right of Termination The City reserves the right to cancel this Agreement at any time, with or without notice, to Contractor, in the City’s sole discretion. Contractor may cancel this Agreement after providing the City with at least thirty (30) days’ notice. If Contractor engages in any activity that poses an immediate threat to the health, safety or reputation of Contractor’s or the City’s employees, residents, invitees, agents or representatives, such termination of this Agreement may be immediate. Termination of this Agreement under this paragraph shall result in the voiding of any upcoming payments that may be due. I. Previous Agreements This agreement supersedes any previous and existing agreements between the parties. [The Remainder of this Page Intentionally Left Blank] 29 IN WITNESS WHEREOF, the City of The Colony, Texas, has caused this Independent Contractor Agreement to be signed and executed on its behalf by the City Manager and Contractor has signed and executed this Independent Contractor Agreement. Signed this the day of , 2026. CITY OF THE COLONY, TEXAS ________________________________________ Troy C. Powell, City Manager City of The Colony, Texas ACCEPTED: ____________________________________ Tod K. Maurina, Principal Tod-CO Consultative Services 30 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2026 - _____ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT AGREEMENT WITH TOD-CO CONSULTATIVE SERVICES TO PROVIDE ASSISTANCE IN THE DEVELOPMENT OF A HOTEL/CONVENTION CENTER; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of The Colony, Texas (the “City”), desires to obtain the services of Tod-Co Consultative Services to provide assistance in the development of a hotel/convention center; and WHEREAS, with said Independent Contractor Agreement, the City is agreeing to pay the sum not to exceed $60,000.00 for such service. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. The Independent Contractor Agreement is found to be acceptable and in the best interest of the City and its citizens, be, and the same is hereby, in all things approved. Section 2. The City Manager is hereby authorized to execute said Independent Contractor Agreement on behalf of the City of The Colony, Texas. Section 3. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15TH DAY OF SEPTEMBER 2026. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ____________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ____________________________________ Jeffrey L. Moore, City Attorney 31 Agenda Item No: 4.5 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to execute a Municipal Building #5 Lease Agreement with Lakeside Community Theater for the Fiscal Year 2026-27. (Shallenburger) Background: Attachments: M#5 Lease Agreement - LCT -2026-27.pdf Res. 2026-xxx Lakeside Community Theatre Lease Agreement.doc 32 Page 1 of 12 LAC LEASE MUNICIPAL BUILDING #5 LEASE AGREEMENT ___________________________________________________________________________ 1. PARTIES: The parties to this lease are: The owner of the Property, Landlord, The City of The Colony, Texas; and Tenant: Lakeside Community Theatre. 2. PROPERTY: Landlord leases to Tenant the following real property: The property at 6303 Main Street, The Colony, TX 75056, referred to herein as the “Property”. 3. TERM: Subject to all of the terms and conditions set forth herein, or in any appendix hereto, the term of this Lease shall be for a period from October 1, 2026 (the “Commencement Date”), and end at 11:59 p.m. on the date through September 30, 2027 (the “Expiration Date”) or on such earlier date as this Lease may terminate as provided herein. 4. RENEWAL AND NOTICE OF TERMINATION: A. Tenant must notify the City, in writing, no later than 45 days before the Expiration Date of their intention to renew the lease at the end of the current term. B. Oral notice of termination is not sufficient under any circumstances. Time is of the essence for providing notice of termination (strict compliance with dates by which notice must be provided is required). 5. RENT: A. The lease rate is calculated at $1.00 per square foot per year. The annual lease rate shall be the greater of the calculated lease rate or $1,800.00. The lease spaced as described in Paragraph 2 herein is calculated at 4,185 square feet. The annual lease amount based on this square footage is $4,185.00 or $348.75 per month. B. Monthly Rent: Tenant will pay Landlord monthly rent in the amount of $348.75 for each full month during this lease. The first full month’s rent is due and payable not later than October 1, 2026. Thereafter, Tenant will pay the monthly rent so that Landlord receives the monthly rent on or before the first day of each month during this lease. Weekends, holidays, and mail delays do not excuse Tenant’s obligation to timely pay rent. C. Place of Payment: Tenant will remit all amounts due to Landlord under this lease to the following person or entity at the place stated below and shall make all payments payable to the named person or entity. Landlord may later designate, in writing, another person or place to which Tenant must remit amounts due under this lease. 33 Page 2 of 12 LAC LEASE Name: City of The Colony, Texas Address: Parks and Recreation Department 5151 North Colony Boulevard, The Colony, TX 75056 D. Method of Payment: (1) Tenant must pay all rent timely and without demand, deduction, or offset, except as permitted by law or this lease. (2) Time is of the essence for the payment of rent (strict compliance with rental due dates is required). (3) If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is not honored by the institution on which it was drawn, Landlord may require Tenant to pay such amount and any subsequent amounts under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this lease for Tenant’s failure to make timely payments with good funds. E. Rent Increases: There will be no rent increases through the primary term. Landlord may increase the rent that will be paid through any subsequent term by providing at least 45 days written notice to Tenant. 6. LATE CHARGES: A. If Landlord does not actually receive a rent payment in the full amount at the designated place of payment by 11:59 p.m. on the 1st day of the month in which it is due, Tenant will pay Landlord for each late payment: (1) an initial late charge on the 5th day of the month equal to $10.00 and (2) additional late charges of $5.00 per day beginning on the 6th day of the month until rent and late charges are paid in full. Total late charges (initial and additional) may not exceed $50.00 in any one month. B. For the purposes of paying rent and any late charges, the mailbox is not the agent for receipt for Landlord (the postmark date is not the date Landlord receives the payment). The parties agree that the late charge is based on a reasonable estimate of uncertain damages to the Landlord that are incapable of precise calculation and result from late payment of rent. Landlord’s acceptance of a late charge does not waive Landlord’s right to exercise remedies under Paragraph 19. 7. RETURNED CHECKS: Tenant will pay Landlord $25.00 for each check Tenant tenders to Landlord which is returned or not honored by the institution on which it is drawn for any reason, 34 Page 3 of 12 LAC LEASE plus any late charges until Landlord receives payment. Tenant must make any returned check good by paying such amount(s) plus any associated charges in certified funds. 8. SECURITY DEPOSIT: A. Security Deposit: Tenant has previously paid Landlord a security deposit in the amount of $360.00. “Security deposit” has the meaning assigned to that term in Section 92.102 of the Texas Property Code. B. Interest: No interest or income will be paid to Tenant on the security deposit. Landlord may place the security deposit in an interest-bearing or income-producing account and any interest or income earned will be paid to Landlord or Landlord’s representative. C. Refund: Tenant must give Landlord at least forty-five (45) days written notice of surrender before Landlord is obligated to refund or account for the security deposit. D. Deductions: (1) Landlord may deduct reasonable charges from the security deposit for: (a) damages to the Property, excluding normal wear and tear; (b) costs for which Tenant is responsible to clean, deodorize, and maintain the Property; (c) unpaid or accelerated rent; (d) unpaid late charges; (e) replacing unreturned keys, garage door openers, security devices, or other components; (f) the removal of unauthorized locks or fixtures installed by Tenant; (g) Landlord’s cost to access the Property if made inaccessible by Tenant; (h) packing, removing, and storing abandoned property; (i) removing abandoned or illegally parked vehicles; (j) costs of reletting (as is provided for in Paragraph 19), if Tenant is in default; (k) attorney’s fees, costs of court, costs of service, and other reasonable costs incurred in any legal proceeding against Tenant; 35 Page 4 of 12 LAC LEASE (l) mailing or delivery costs associated with sending notices to Tenant for any violations of this lease; and (m) any other unpaid charges or fees or other items Tenant is responsible to pay under this lease. (2) If deductions exceed the security deposit, Tenant will pay to Landlord the excess within 10 days after Landlord makes written demand. 9. ACCESS BY LANDLORD: A. Landlord shall have access to the building at all times in order to facilitate routine and emergency maintenance, and necessary storage of any city property associated with the use of the building. 10. MOVE-OUT: A. Move-Out Condition: When this lease ends, Tenant will surrender the Property in the same or similar condition as when received, normal wear and tear expected. Tenant will leave the Property in a clean condition free of all trash, debris, and any personal property. Tenant may not abandon the Property. B. Definitions: (1) “Normal wear and tear” means deterioration that occurs without negligence, carelessness, accident, or abuse outside of normal expectations associated with the normal use of the facility. (2) “Surrender” occurs when all occupants have vacated the Property, in Landlord’s reasonable judgment, and one of the following events occurs: (a) the date Tenant specifies as the move-out or termination date in a written notice to Landlord has passed; or (b) Tenant returns keys and access devices that Landlord provided under this lease. (3) “Abandonment” occurs when all of the following occur: (a) all occupants have vacated the Property, in Landlord’s reasonable judgment; (b) Tenant is in breach of this lease by not timely paying rent; and (c) Landlord has delivered written notice to Tenant, by affixing it to the inside of the main entry door or if the Landlord is prevented from entering the Property by affixing it to the outside of the main entry door, stating that Landlord considers the Property abandoned, and Tenant fails to respond to the affixed 36 Page 5 of 12 LAC LEASE notice by the time required in the notice, which will not be less than 2 days from the date the notice is affixed to the main entry door. C. Personal Property Left After Move-Out: (1) If Tenant leaves any personal property in the Property after surrendering or abandoning the Property Landlord may: (a) dispose of such personal property in the trash or a landfill; (b) give such personal property to a charitable organization; or (c) store and sell such personal property by following procedures in Section 54.045(b)-(e) of the Texas Property Code (2) Tenant must reimburse Landlord all Landlord’s reasonable costs under Paragraph 10 C(1) for packing, removing, storing, and selling the personal property left in the Property after surrender or abandonment. 11. PROPERTY MAINTENANCE: A. Tenant’s General Responsibilities: By taking possession of the Property, Tenant shall be deemed to have accepted the Property “AS IS.” Tenant, at Tenant’s expense, must: (1) keep the Property clean and sanitary; (2) promptly dispose of all garbage in appropriate receptacles; (3) supply and replace all batteries for smoke detectors, carbon monoxide detectors and other devices (of the same type and quality that are in the property on the Commencement Date); (4) take action to promptly eliminate any dangerous condition on the Property; (5) take all necessary precautions to prevent broken water pipes due to freezing or other causes; (6) remove any standing water; (7) know the location and operation of the main water cut-off valve and all electric breakers and how to switch the valve or breakers off at appropriate times to mitigate any potential damage; and (8) promptly notify Landlord, in writing, of all needed repairs. 37 Page 6 of 12 LAC LEASE B. Prohibitions: If Tenant installs any fixtures on the Property, authorized or unauthorized, such as additional smoke detectors, locks, alarm systems, cables, satellite dishes, or other fixtures, such fixtures will become the property of the Landlord. Except as otherwise permitted by law, this lease, or in writing by Landlord, Tenant may not: (1) remove any part of the property or any of Landlord’s personal property from the Property; (2) remove, change, add, or rekey any lock; (3) install additional phone or video cables, outlets, antennas, satellite receivers, or alarm systems; (4) keep or permit any material which causes any liability or fire and extended insurance coverage to be suspended or canceled or any premiums to be increased; (5) dispose of any environmentally detrimental substance (for example, motor oil or radiator fluid) on the Property; or (6) cause or allow any lien to be filed against any portion of the Property. C. Failure to Maintain: If Tenant fails to comply with this Paragraph Landlord may, in addition to exercising Landlord’s remedies under Paragraph 20, perform whatever action Tenant is obligated to perform and Tenant must immediately reimburse Landlord the reasonable expenses that Landlord incurs. 12. REPAIRS: A. Repair Requests: All requests for repairs must be in writing and delivered to Designated Agent or Landlord. If Tenant is delinquent in rent at the time a repair notice is given, Landlord is not obligated to make the repair. B. Completion of Repairs: (1) Tenant may not repair or cause to be repaired any condition listed in paragraph 12(C)(1), regardless of the cause, without Landlord’s permission. All decisions regarding repairs, including the completion of any repair, whether to repair or replace the item will be at Landlord’s sole discretion. (2) Landlord is not obligated to complete a repair on a day other than a business day unless required to do so by the Property Code. C. Payment of Repair Costs: Repair costs will be paid as follows: (1) Repairs that Landlord will Pay Entirely: Landlord will pay the entire cost to repair: 38 Page 7 of 12 LAC LEASE (a) a condition caused by the Landlord or the negligence of the Landlord; (b) wastewater stoppages or backups caused by deterioration, breakage, roots, ground condition, faulty construction, or malfunctioning equipment. (c) a condition that adversely affects the health or safety of an ordinary tenant which is not caused by Tenant, an occupant, a member of Tenant’s family, or a guest or invitee of Tenant; and (d) a condition in the following items which is not caused by Tenant or Tenant’s negligence: (1) heating and air conditioning systems; (2) electrical repairs; (3) damage to doors, windows, or screens; (4) water heaters; or (5) water penetration from structural defects. (2) Repairs that Tenant will Pay Entirely: Tenant will pay the entire cost to repair: (a) a condition caused by Tenant, an occupant, a member of Tenant’s organization, or a guest or invitee of Tenant (a failure to timely report an item in need of repair or the failure to properly maintain an item may cause damage for which Tenant may be responsible); (b) damage from wastewater stoppages caused by foreign or improper objects in lines that exclusively service the Property; and (c) damage from windows or doors left open. D. In the event Tenant and/or its sublessee desires to make alterations or improvements to the Leased Premises, Tenant must comply with the requirements of Section 2252.909 of the Texas Government Code. (1) Tenant and/or its sublessee must include in each contract for the construction, alteration, or repair of an improvement to the Leased Premises a condition that the contractor: (1) execute a payment bond that conforms to Subchapter I, Chapter 53, Property Code; and (2) execute a performance bond in an amount equal to the amount of the contract for the protection of the Landlord and conditioned on the faithful performance of the contractor’s work in accordance with the plans, specifications, and contract documents; and (2) Tenant and/or its sublessee must provide to the Landlord a notice of commencement at least 90 days before the date the construction, alteration, or repair of any improvement to the Leased Premises begins. Said notice of commencement must contain the following: 39 Page 8 of 12 LAC LEASE (A) identify the public property where the work will be performed; (B) describe the work to be performed; (C) state the total cost of the work to be performed; (D) include copies of the performance and payment bonds required under Subsection (1); and (E) include a written acknowledgment signed by the contractor stating that copies of the required performance and payment bonds will be provided to all subcontractors not later than the fifth day after the date a subcontract is executed. (3) Consistent with Section 2252.909(d) of the Texas Government Code, the Landlord on or before the 10th day after the date the Landlord receives a notice of commencement for the construction, alteration, or repair of an improvement to the Leased Premises required under Subsection (2), the Landlord may notify the Tenant and/or its sublessee that the construction, alteration, or repair may not proceed. 13. SECURITY DEVICES AND EXTERIOR DOOR LOCKS: All notices or requests by Tenant for rekeying, changing, installing, repairing, or replacing security devices must be in writing. Installation of additional security devices or additional rekeying or replacement of security devices desired by Tenant will be paid by Tenant in advance and may be installed only by contractors authorized by Landlord. 14. SMOKE DETECTORS: Subchapter F, Chapter 92, Property Code requires the Property to be equipped with smoke detectors in certain locations. Requests for additional installation, inspection, or repair of smoke detectors must be in writing. Disconnecting or intentionally damaging a smoke detector or removing a battery without immediately replacing it with a working battery may subject Tenant to civil penalties and liability for damages and attorney fees under Section 92.2611 of the Texas Property Code. 15. LIABILITY: Unless caused by Landlord, Landlord is not responsible to Tenant, Tenant’s guests, members, or occupants for any damages, injuries, or losses to person or property caused by fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, interruption of utilities, theft, burglary, robbery, assault, vandalism, other persons, condition of the Property, environmental contaminants (for example, carbon monoxide, asbestos, radon, lead-based paint, mold, fungus, etc.), or other occurrences or casualty losses. Tenant will promptly reimburse Landlord for any loss, property damage, or cost of repairs or service to the Property caused by Tenant, Tenant’s guests, or any occupants. 16. HOLDOVER: If Tenant fails to vacate the Property at the time this lease ends Tenant will pay Landlord rent for the holdover period and indemnify Landlord and prospective tenants for damages, including but not limited to lost rent, lodging expenses, costs of eviction, and attorney’s fees. Rent for any holdover period will be three (3) times the monthly rent, calculated on a daily basis, and will be immediately due and payable daily without notice or demand. 17. SUBORDINATION: This lease and Tenant’s leasehold interest are and will be subject, subordinate, and inferior to: (i) any lien or encumbrance now or later placed on the Property by 40 Page 9 of 12 LAC LEASE Landlord; (ii) all advances made under and such lien or encumbrance; (iii) the interest payable on any such lien or encumbrance; (iv) any and all renewals and extensions of any such lien or encumbrance; (v) any restrictive covenant; and (vi) the rights of any owners’ association affecting the Property. 18. CASUALTY LOSS OR CONDEMNATION: Section 92.054 of the Texas Property Code governs the rights and obligations of the parties regarding a casualty loss to the Property. Any proceeds, payment for damages, settlements, awards, or other sums paid because of a casualty loss to the Property will be Landlord’s sole property. For the purpose of this lease, any condemnation of all or a part of the property is a casualty loss. 19. DEFAULT: A. If Landlord fails to comply with this lease, Tenant may seek any relief provided by law. B. If Tenant fails to comply with this lease, Tenant will be in default and: (1) Landlord may terminate Tenant’s right to occupy the Property by providing Tenant with at least ten (10) days written notice to vacate; (2) all unpaid rents which are payable during the remainder of this lease or any renewal period will be accelerated without notice or demand; and (3) Tenant will be liable for: (a) any lost rent; (b) Landlord’s cost of reletting the Property including but not limited to leasing fees, advertising fees, utility charges, and other fees reasonably necessary to relet the Property; (c) repairs to the Property for use beyond normal wear and tear; (d) all Landlord’s costs associated with eviction of Tenant, including but not limited to attorney’s fees, court costs, costs of service, and prejudgment interest; (e) all Landlord’s costs associated with collection of amounts due under this lease, including but not limited to collection fees, late charges, and returned check charges; and (f) any other recovery to which Landlord may be entitled by law. C. Notice to vacate under Paragraph 19B(1) may be by any means permitted by Section 24.005 of the Texas Property Code. 41 Page 10 of 12 LAC LEASE D. Landlord will attempt to mitigate any damage or loss caused by Tenant’s breach by attempting to relet the Property to acceptable tenants and reducing Tenant’s liability accordingly. 20. EARLY TERMINATION: This lease begins on the Commencement Date and ends on the Expiration date unless: (i) renewed under Paragraph 4; (ii) extended by written agreement of the parties; or (iii) terminated earlier under Paragraph 19, by agreement of the parties, applicable law, or this Paragraph. A. Early Termination Option: Tenant(s) in good standing (those who are in compliance with the lease) have the option to terminate this lease prior to the normal end of term or during any future renewal by providing the Landlord all of the following a) a minimum 45 day written notice, b) providing the last date of occupancy and c) submitting certified funds (Cashier’s Check, money orders or wire transfer) as an “Early Termination Fee” in the amount of 150% of one month’s rent at the time notice is provided. Rent will be prorated on a daily basis through the revised end of term. Tenant is required to conform to all other terms of the lease or the Early Termination Option will be forfeit and the tenant will be responsible for the full amount of rent as allowed by the lease. B. Assignment and Subletting: (1) Tenant may not assign this lease or sublet the Property without Landlord’s written consent. (2) If Tenant requests an early termination of this lease under this Paragraph 20A, Tenant may attempt to find a replacement tenant and may request Landlord to do the same. Landlord may, but is not obligated to, attempt to find a replacement tenant under this paragraph. (3) Any assignee, subtenant, or replacement tenant must, in Landlord’s discretion, be acceptable as a tenant and must sign: (a) a new lease with terms not less favorable to Landlord than this lease or otherwise acceptable to Landlord; (b) a sublease with terms approved by Landlord; or (c) an assignment of this lease in a form approved by Landlord. (4) Unless expressly stated otherwise in an assignment or sublease, Tenant will not be released from Tenant’s obligations under this lease because of an assignment or sublease. An assignment of this lease or a sublease of this lease without Landlord’s written consent is voidable by Landlord. 21. ATTORNEY’S FEES: Any person who is a prevailing party in any legal proceeding brought under or related to the transaction described in this lease is entitled to recover prejudgment interest, attorney’s fees, costs of service, and all other costs of the legal proceeding from the non-prevailing party. 42 Page 11 of 12 LAC LEASE 22. AGREEMENT OF PARTIES: A. Entire Agreement: There are no oral agreements between Landlord and Tenant. This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement. B. Binding Effect: This lease is binding upon and inures to the benefit of the parties to this lease and their respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its extension, its renewal, or its termination is binding on all Tenants executing this lease. D. Waiver: Landlord’s past delay, waiver, or non-enforcement of a rental due date or any other right will not be deemed to be a waiver of any other breach by Tenant or any other right in this lease. E. Severability Clause: Should a court find any clause in this lease unenforceable, the remainder of this lease will not be affected and all other provisions in this lease will remain enforceable. F. Controlling Law: The laws of the State of Texas govern the interpretation, validity, performance, and enforcement of this lease. Venue for any action arising under this lease shall lie in the state district and county courts of Denton County, Texas. G. Signage. Tenant shall have the right to erect signs on any portion of the Property only in accordance with applicable laws, ordinances, and regulations. H. Taxes. Landlord shall be liable for any taxes levied or accessed against the Property, excluding any taxes levied or assessed for any personal property, furniture, or fixtures placed by the Tenant on the Property. Tenant shall be liable for all taxes levied or assessed against any personal property, furniture or fixtures placed by Tenant on the Property. [The Remainder of this Page Intentionally Left Blank] 43 Page 12 of 12 LAC LEASE Executed and agreed to this ___ day of ________, 2026. _______________________________ ___________________________________ Troy Powell Donna Arnold City Manager, City of The Colony President, Lakeside Community Theatre Approved as to form: _______________________________ Jeff Moore, City Attorney 44 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2026 - ______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A MUNICIPAL BUILDING #5 LEASE AGREEMENT WITH LAKESIDE COMMUNITY THEATER FOR FISCAL YEAR 2026-27 OF PROPERTY LOCATED AT 6303 MAIN STREET, THE COLONY, TEXAS; PROVIDING AN EFFECTIVE DATE WHEREAS, That the City Council of the City of The Colony, Texas, approved a building use policy establishing guidelines for the use and rental of City facilities; and WHEREAS, The Colony City Council has determined it to be in the best interest of its citizens to enter into a Lease Agreement through September 30, 2027 with Lakeside Community Theater to lease a portion of the property located at 6303 Main Street, The Colony, Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Council of the City of The Colony, Texas hereby authorizes the city manager to execute an Agreement with Lakeside Community Theater for the use of a portion of the property located at 6303 Main Street, The Colony, Texas. Section 2. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15TH DAY OF SEPTEMBER 2026. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 45 Agenda Item No: 4.6 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to execute a Government Center Lease Agreement with American Legion Holley-Riddle Post 21 for the Fiscal Year 2026-27. (Shallenburger) Background: Attachments: GC Lease Agreement - AL - 2026-27.pdf Res. 2026-xxx American Legion HR Lease Agreement.doc 46 Page 1 of 12 LAC LEASE LEASE AGREEMENT ___________________________________________________________________________ 1. PARTIES: The parties to this lease are: The owner of the Property, Landlord, The City of The Colony, Texas; and Tenant: American Legion Holley-Riddle Post 21 2. PROPERTY: Landlord leases to Tenant the following real property: A portion of the property at 6301 Main Street The Colony, TX 75056 more particularly identified as area A in Exhibit “A”, referred to herein as the “Property”. 3. TERM: Subject to all of the terms and conditions set forth herein, or in any appendix hereto, the term of this Lease shall be for a period from October 1, 2026 (the “Commencement Date”), and end at 11:59 p.m. on the date through September 30, 2027 (the “Expiration Date”) or on such earlier date as this Lease may terminate as provided herein. 4. RENEWAL AND NOTICE OF TERMINATION: A. Tenant must notify the City, in writing, no later than 45 days before the Expiration Date of their intention to renew the lease at the end of the current term. B. Oral notice of termination is not sufficient under any circumstances. Time is of the essence for providing notice of termination (strict compliance with dates by which notice must be provided is required). 5. RENT: A. Lease Rate Calculation: The lease rate is calculated at $1.00 per square foot per year. The annual lease rate shall be the greater of the calculated lease rate or $1,800.00. The lease spaced as described in Paragraph 2 herein is calculated at 2,685 square feet. The annual lease amount based on this square footage is $2,685.00 or $223.75 per month. B. Monthly Rent: Tenant will pay Landlord monthly rent in the amount of $223.75 for each full month during this lease. The first full month’s rent is due and payable not later than October 1, 2026. Thereafter, Tenant will pay the monthly rent so that Landlord receives the monthly rent on or before the first day of each month during this lease. Weekends, holidays, and mail delays do not excuse Tenant’s obligation to timely pay rent. C. Place of Payment: Tenant will remit all amounts due to Landlord under this lease to the following person or entity at the place stated below and shall make all payments payable to the named person or entity. Landlord may later designate, in writing, another person or place to which Tenant must remit amounts due under this lease. 47 Page 2 of 12 LAC LEASE Name: City of The Colony, Texas Address: Parks and Recreation Department 5151 North Colony Boulevard, The Colony, TX 75056 D. Method of Payment: (1) Tenant must pay all rent timely and without demand, deduction, or offset, except as permitted by law or this lease. (2) Time is of the essence for the payment of rent (strict compliance with rental due dates is required). (3) If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is not honored by the institution on which it was drawn, Landlord may require Tenant to pay such amount and any subsequent amounts under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this lease for Tenant’s failure to make timely payments with good funds. E. Rent Increases: There will be no rent increases through the primary term. Landlord may increase the rent that will be paid through any subsequent term by providing at least 45 days written notice to Tenant. 6. LATE CHARGES: A. If Landlord does not actually receive a rent payment in the full amount at the designated place of payment by 11:59 p.m. on the 1st day of the month in which it is due, Tenant will pay Landlord for each late payment: (1) an initial late charge on the 5th day of the month equal to $10.00 and (2) additional late charges of $5.00 per day beginning on the 6th day of the month until rent and late charges are paid in full. Total late charges (initial and additional) may not exceed $50.00 in any one month. B. For the purposes of paying rent and any late charges, the mailbox is not the agent for receipt for Landlord (the postmark date is not the date Landlord receives the payment). The parties agree that the late charge is based on a reasonable estimate of uncertain damages to the Landlord that are incapable of precise calculation and result from late payment of rent. Landlord’s acceptance of a late charge does not waive Landlord’s right to exercise remedies under Paragraph 19. 7. RETURNED CHECKS: Tenant will pay Landlord $25.00 for each check Tenant tenders to Landlord which is returned or not honored by the institution on which it is drawn for any reason, plus any late charges until Landlord receives payment. Tenant must make any returned check good 48 Page 3 of 12 LAC LEASE by paying such amount(s) plus any associated charges in certified funds. 8. SECURITY DEPOSIT: A. Security Deposit: Tenant has previously paid Landlord a security deposit in the amount of $360.00. “Security deposit” has the meaning assigned to that term in Section 92.102 of the Texas Property Code. B. Interest: No interest or income will be paid to Tenant on the security deposit. Landlord may place the security deposit in an interest-bearing or income-producing account and any interest or income earned will be paid to Landlord or Landlord’s representative. C. Refund: Tenant must give Landlord at least forty-five (45) days written notice of surrender before Landlord is obligated to refund or account for the security deposit. D. Deductions: (1) Landlord may deduct reasonable charges from the security deposit for: (a) damages to the Property, excluding normal wear and tear; (b) costs for which Tenant is responsible to clean, deodorize, and maintain the Property; (c) unpaid or accelerated rent; (d) unpaid late charges; (e) replacing unreturned keys, garage door openers, security devices, or other components; (f) the removal of unauthorized locks or fixtures installed by Tenant; (g) Landlord’s cost to access the Property if made inaccessible by Tenant; (h) packing, removing, and storing abandoned property; (i) removing abandoned or illegally parked vehicles; (j) costs of reletting (as is provided for in Paragraph 19), if Tenant is in default; (k) attorney’s fees, costs of court, costs of service, and other reasonable costs incurred in any legal proceeding against Tenant; (l) mailing or delivery costs associated with sending notices to Tenant for any violations of this lease; and 49 Page 4 of 12 LAC LEASE (m) any other unpaid charges or fees or other items Tenant is responsible to pay under this lease. (2) If deductions exceed the security deposit, Tenant will pay to Landlord the excess within 10 days after Landlord makes written demand. 9. ACCESS BY LANDLORD: Landlord shall have access to the building at all times in order to facilitate routine and emergency maintenance, and necessary storage of any city property associated with the use of the building. 10. MOVE-OUT: A. Move-Out Condition: When this lease ends, Tenant will surrender the Property in the same or similar condition as when received, normal wear and tear expected. Tenant will leave the Property in a clean condition free of all trash, debris, and any personal property. Tenant may not abandon the Property. B. Definitions: (1) “Normal wear and tear” means deterioration that occurs without negligence, carelessness, accident, or abuse outside of normal expectations associated with the normal use of the facility. (2) “Surrender” occurs when all occupants have vacated the Property, in Landlord’s reasonable judgment, and one of the following events occurs: (a) the date Tenant specifies as the move-out or termination date in a written notice to Landlord has passed; or (b) Tenant returns keys and access devices that Landlord provided under this lease. (3) “Abandonment” occurs when all of the following occur: (a) all occupants have vacated the Property, in Landlord’s reasonable judgment; (b) Tenant is in breach of this lease by not timely paying rent; and (c) Landlord has delivered written notice to Tenant, by affixing it to the inside of the main entry door or if the Landlord is prevented from entering the Property by affixing it to the outside of the main entry door, stating that Landlord considers the Property abandoned, and Tenant fails to respond to the affixed notice by the time required in the notice, which will not be less than 2 days from the date the notice is affixed to the main entry door. 50 Page 5 of 12 LAC LEASE C. Personal Property Left After Move-Out: (1) If Tenant leaves any personal property in the Property after surrendering or abandoning the Property Landlord may: (a) dispose of such personal property in the trash or a landfill; (b) give such personal property to a charitable organization; or (c) store and sell such personal property by following procedures in Section 54.045(b)-(e) of the Texas Property Code (2) Tenant must reimburse Landlord all Landlord’s reasonable costs under Paragraph 10 C(1) for packing, removing, storing, and selling the personal property left in the Property after surrender or abandonment. 11. PROPERTY MAINTENANCE: A. Tenant’s General Responsibilities: By taking possession of the Property, Tenant shall be deemed to have accepted the Property “AS IS.” Tenant, at Tenant’s expense, must: (1) keep the Property clean and sanitary; (2) promptly dispose of all garbage in appropriate receptacles; (3) supply and replace all batteries for smoke detectors, carbon monoxide detectors and other devices (of the same type and quality that are in the property on the Commencement Date); (4) take action to promptly eliminate any dangerous condition on the Property; (5) take all necessary precautions to prevent broken water pipes due to freezing or other causes; (6) remove any standing water; (7) know the location and operation of the main water cut-off valve and all electric breakers and how to switch the valve or breakers off at appropriate times to mitigate any potential damage; and (8) promptly notify Landlord, in writing, of all needed repairs. B. Prohibitions: If Tenant installs any fixtures on the Property, authorized or unauthorized, such as additional smoke detectors, locks, alarm systems, cables, satellite dishes, or other 51 Page 6 of 12 LAC LEASE fixtures, such fixtures will become the property of the Landlord. Except as otherwise permitted by law, this lease, or in writing by Landlord, Tenant may not: (1) remove any part of the property or any of Landlord’s personal property from the Property; (2) remove, change, add, or rekey any lock; (3) make holes in the woodwork, floors, or walls, except that a reasonable number of small nails may be used to hang pictures in sheetrock and grooves in paneling; (4) install additional phone or video cables, outlets, antennas, satellite receivers, or alarm systems; (5) keep or permit any material which causes any liability or fire and extended insurance coverage to be suspended or canceled or any premiums to be increased; (6) dispose of any environmentally detrimental substance (for example, motor oil or radiator fluid) on the Property; or (7) cause or allow any lien to be filed against any portion of the Property. C. Failure to Maintain: If Tenant fails to comply with this Paragraph Landlord may, in addition to exercising Landlord’s remedies under Paragraph 19, perform whatever action Tenant is obligated to perform and Tenant must immediately reimburse Landlord the reasonable expenses that Landlord incurs. 12. REPAIRS: A. Repair Requests: All requests for repairs must be in writing and delivered to Designated Agent or Landlord. If Tenant is delinquent in rent at the time a repair notice is given, Landlord is not obligated to make the repair. B. Completion of Repairs: (1) Tenant may not repair or cause to be repaired any condition listed in Paragraph 12(C)(1), regardless of the cause, without Landlord’s permission. All decisions regarding repairs, including the completion of any repair, whether to repair or replace the item, will be at Landlord’s sole discretion. (2) Landlord is not obligated to complete a repair on a day other than a business day unless required to do so by the Property Code. C. Payment of Repair Costs: Repair costs will be paid as follows: (1) Repairs that Landlord will Pay Entirely: Landlord will pay the entire cost to repair: 52 Page 7 of 12 LAC LEASE (a) a condition caused by the Landlord or the negligence of the Landlord; (b) wastewater stoppages or backups caused by deterioration, breakage, roots, ground condition, faulty construction, or malfunctioning equipment. (c) a condition that adversely affects the health or safety of an ordinary tenant which is not caused by Tenant, an occupant, a member of Tenant’s family, or a guest or invitee of Tenant; and (d) a condition in the following items which is not caused by Tenant or Tenant’s negligence: (1) heating and air conditioning systems; (2) electrical repairs; (3) damage to doors, windows, or screens (4) water heaters; or (5) water penetration from structural defects. (2) Repairs that Tenant will Pay Entirely: Tenant will pay the entire cost to repair: (a) a condition caused by Tenant, an occupant, a member of Tenant’s organization, or a guest or invitee of Tenant (a failure to timely report an item in need of repair or the failure to properly maintain an item may cause damage for which Tenant may be responsible); (b) damage from wastewater stoppages caused by foreign or improper objects in lines that exclusively service the Property; and (c) damage from windows or doors left open. D. In the event Tenant and/or its sublessee desires to make alterations or improvements to the Leased Premises, Tenant must comply with the requirements of Section 2252.909 of the Texas Government Code. (1) Tenant and/or its sublessee must include in each contract for the construction, alteration, or repair of an improvement to the Leased Premises a condition that the contractor: (1) execute a payment bond that conforms to Subchapter I, Chapter 53, Property Code; and (2) execute a performance bond in an amount equal to the amount of the contract for the protection of the Landlord and conditioned on the faithful performance of the contractor’s work in accordance with the plans, specifications, and contract documents; and (2) Tenant and/or its sublessee must provide to the Landlord a notice of commencement at least 90 days before the date the construction, alteration, or 53 Page 8 of 12 LAC LEASE repair of any improvement to the Leased Premises begins. Said notice of commencement must contain the following: (A) identify the public property where the work will be performed; (B) describe the work to be performed; (C) state the total cost of the work to be performed; (D) include copies of the performance and payment bonds required under Subsection (1); and (E) include a written acknowledgment signed by the contractor stating that copies of the required performance and payment bonds will be provided to all subcontractors not later than the fifth day after the date a subcontract is executed. (3) Consistent with Section 2252.909(d) of the Texas Government Code, the Landlord on or before the 10th day after the date the Landlord receives a notice of commencement for the construction, alteration, or repair of an improvement to the Leased Premises required under Subsection (2), the Landlord may notify the Tenant and/or its sublessee that the construction, alteration, or repair may not proceed. 13. SECURITY DEVICES AND EXTERIOR DOOR LOCKS: All notices or requests by Tenant for rekeying, changing, installing, repairing, or replacing security devices must be in writing. Installation of additional security devices or additional rekeying or replacement of security devices desired by Tenant will be paid by Tenant in advance and may be installed only by contractors authorized by Landlord. 14. SMOKE DETECTORS: Subchapter F, Chapter 92, Property Code requires the Property to be equipped with smoke detectors in certain locations. Requests for additional installation, inspection, or repair of smoke detectors must be in writing. Disconnecting or intentionally damaging a smoke detector or removing a battery without immediately replacing it with a working battery may subject Tenant to civil penalties and liability for damages and attorney fees under Section 92.2611 of the Texas Property Code. 15. LIABILITY: Unless caused by Landlord, Landlord is not responsible to Tenant, Tenant’s guests, members, or occupants for any damages, injuries, or losses to person or property caused by fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, interruption of utilities, theft, burglary, robbery, assault, vandalism, other persons, condition of the Property, environmental contaminants (for example, carbon monoxide, asbestos, radon, lead-based paint, mold, fungus, etc.), or other occurrences or casualty losses. Tenant will promptly reimburse Landlord for any loss, property damage, or cost of repairs or service to the Property caused by Tenant, Tenant’s guests, or any occupants. 16. HOLDOVER: If Tenant fails to vacate the Property at the time this lease ends Tenant will pay Landlord rent for the holdover period and indemnify Landlord and prospective tenants for damages, including but not limited to lost rent, lodging expenses, costs of eviction, and attorney’s fees. Rent for any holdover period will be three (3) times the monthly rent, calculated on a daily basis, and will be immediately due and payable daily without notice or demand. 54 Page 9 of 12 LAC LEASE 17. SUBORDINATION: This lease and Tenant’s leasehold interest are and will be subject, subordinate, and inferior to: (i) any lien or encumbrance now or later placed on the Property by Landlord; (ii) all advances made under and such lien or encumbrance; (iii) the interest payable on any such lien or encumbrance; (iv) any and all renewals and extensions of any such lien or encumbrance; (v) any restrictive covenant; and (vi) the rights of any owners’ association affecting the Property. 18. CASUALTY LOSS OR CONDEMNATION: Section 92.054 of the Texas Property Code governs the rights and obligations of the parties regarding a casualty loss to the Property. Any proceeds, payment for damages, settlements, awards, or other sums paid because of a casualty loss to the Property will be Landlord’s sole property. For the purpose of this lease, any condemnation of all or a part of the property is a casualty loss. 19. DEFAULT: A. If Landlord fails to comply with this lease, Tenant may seek any relief provided by law. B. If Tenant fails to comply with this lease, Tenant will be in default and: (1) Landlord may terminate Tenant’s right to occupy the Property by providing Tenant with at least ten (10) days written notice to vacate; (2) all unpaid rents which are payable during the remainder of this lease or any renewal period will be accelerated without notice or demand; and (3) Tenant will be liable for: (a) any lost rent; (b) Landlord’s cost of reletting the Property including but not limited to leasing fees, advertising fees, utility charges, and other fees reasonably necessary to relet the Property; (c) repairs to the Property for use beyond normal wear and tear; (d) all Landlord’s costs associated with eviction of Tenant, including but not limited to attorney’s fees, court costs, costs of service, and prejudgment interest; (e) all Landlord’s costs associated with collection of amounts due under this lease, including but not limited to collection fees, late charges, and returned check charges; and (f) any other recovery to which Landlord may be entitled by law. C. Notice to vacate under Paragraph 19B(1) may be by any means permitted by Section 24.005 of the Texas Property Code. 55 Page 10 of 12 LAC LEASE D. Landlord will attempt to mitigate any damage or loss caused by Tenant’s breach by attempting to relet the Property to acceptable tenants and reducing Tenant’s liability accordingly. 20. EARLY TERMINATION: This lease begins on the Commencement Date and ends on the Expiration date unless: (i) renewed under Paragraph 4; (ii) extended by written agreement of the parties; or (iii) terminated earlier under Paragraph 19, by agreement of the parties, applicable law, or this Paragraph. A. Early Termination Option: Tenant(s) in good standing (those who are in compliance with the lease) have the option to terminate this lease prior to the normal end of term or during any future renewal by providing the Landlord all of the following a) a minimum 45 day written notice, b) providing the last date of occupancy and c) submitting certified funds (Cashier’s Check, money orders or wire transfer) as an “Early Termination Fee” in the amount of 150% of one month’s rent at the time notice is provided. Rent will be prorated on a daily basis through the revised end of term. Tenant is required to conform to all other terms of the lease or the Early Termination Option will be forfeit and the tenant will be responsible for the full amount of rent as allowed by the lease. B. Assignment and Subletting: (1) Tenant may not assign this lease or sublet the Property without Landlord’s written consent. (2) If Tenant requests an early termination of this lease under this Paragraph 20A, Tenant may attempt to find a replacement tenant and may request Landlord to do the same. Landlord may, but is not obligated to, attempt to find a replacement tenant under this paragraph. (3) Any assignee, subtenant, or replacement tenant must, in Landlord’s discretion, be acceptable as a tenant and must sign: (a) a new lease with terms not less favorable to Landlord than this lease or otherwise acceptable to Landlord; (b) a sublease with terms approved by Landlord; or (c) an assignment of this lease in a form approved by Landlord. (4) Unless expressly stated otherwise in an assignment or sublease, Tenant will not be released from Tenant’s obligations under this lease because of an assignment or sublease. An assignment of this lease or a sublease of this lease without Landlord’s written consent is voidable by Landlord. 21. ATTORNEY’S FEES: Any person who is a prevailing party in any legal proceeding brought under or related to the transaction described in this lease is entitled to recover prejudgment interest, attorney’s fees, costs of service, and all other costs of the legal proceeding from the non-prevailing party. 56 Page 11 of 12 LAC LEASE 22. AGREEMENT OF PARTIES: A. Entire Agreement: There are no oral agreements between Landlord and Tenant. This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement. B. Binding Effect: This lease is binding upon and inures to the benefit of the parties to this lease and their respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its extension, its renewal, or its termination is binding on all Tenants executing this lease. D. Waiver: Landlord’s past delay, waiver, or non-enforcement of a rental due date or any other right will not be deemed to be a waiver of any other breach by Tenant or any other right in this lease. E. Severability Clause: Should a court find any clause in this lease unenforceable, the remainder of this lease will not be affected and all other provisions in this lease will remain enforceable. F. Controlling Law: The laws of the State of Texas govern the interpretation, validity, performance, and enforcement of this lease. Venue for any action arising under this lease shall lie in the state district and county courts of Denton County, Texas. G. Signage. Tenant shall have the right to erect signs on any portion of the Property only in accordance with applicable laws, ordinances, and regulations. H. Taxes. Landlord shall be liable for any taxes levied or accessed against the Property, excluding any taxes levied or assessed for any personal property, furniture, or fixtures placed by the Tenant on the Property. Tenant shall be liable for all taxes levied or assessed against any personal property, furniture or fixtures placed by Tenant on the Property. [The Remainder of this Page Intentionally Left Blank] 57 Page 12 of 12 LAC LEASE Executed and agreed to this ___ day of ________, 2026. _______________________________ ____________________________________ Troy Powell Mary C. Garcia City Manager, City of the Colony Commander, American Legion Holley- Riddle Post 21 Approved as to form: _______________________________ Jeff Moore, City Attorney 58 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2026 - _______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A GOVERNMENT CENTER LEASE AGREEMENT WITH AMERICAN LEGION HOLLEY-RIDDLE POST 21 FOR THE FISCAL YEAR 2026-2027 FOR A PORTION OF PROPERTY LOCATED AT 6301 MAIN STREET, THE COLONY, TEXAS; PROVIDING AN EFFECTIVE DATE WHEREAS, That the City Council of the City of The Colony, Texas, approved a building use policy establishing guidelines for the use and rental of City facilities; and WHEREAS, The Colony City Council has determined it to be in the best interest of its citizens to enter into a Government Center Lease Agreement through September 30, 2027 with American Legion Holley-Riddle Post 21 to lease a portion of the property located at 6301 Main Street, The Colony, Texas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Council of the City of The Colony, Texas hereby authorizes the city manager to execute an Agreement with American Legion Holley- Riddle Post 21 for the use of a portion of the property located at 6301 Main Street, The Colony, Texas. Section 2. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15TH DAY OF SEPTEMBER 2026. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 59 Agenda Item No: 4.7 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Resolution Agenda Section: consent agenda Suggested Action: Consider approving a resolution authorizing the City Manager to execute a Lease Agreement with The Colony Chamber of Commerce for a space in the Library Building for the Fiscal Year 2026-27. (Shallenburger) Background: Attachments: LIB Lease Agreement - TCCOC- 2026-27.pdf Res. 2026-xxx The Colony Chamber of Commerce Lease Agreement.doc 60 Page 1 of 12 TCCOC LEASE LEASE AGREEMENT ___________________________________________________________________________ 1. PARTIES: The parties to this lease are: The owner of the Property, Landlord, The City of The Colony, Texas; and Tenant: The Colony Chamber of Commerce 2. PROPERTY: Landlord leases to Tenant the following real property: A mutually agreed upon portion of the property at 6800 Main Street, Ste 101, The Colony, TX 75056, identified in Exhibit “A”, and referred to herein as the “Property”. 3. TERM: Subject to all of the terms and conditions set forth herein, or in any appendix hereto, the term of this Lease shall be for a period from October 1, 2026 (the “Commencement Date”), and end at 11:59 p.m. on the date through September 30, 2027 (the “Expiration Date”) or on such earlier date as this Lease may terminate as provided herein. 4. RENEWAL AND NOTICE OF TERMINATION: A. Tenant must notify the City, in writing, no later than 45 days before the Expiration Date of their intention to renew the lease at the end of the current term. B. Oral notice of termination is not sufficient under any circumstances. Time is of the essence for providing notice of termination (strict compliance with dates by which notice must be provided is required). 5. RENT: A. The lease rate is calculated at $1.00 per square foot per year. The annual lease rate shall be the greater of the calculated lease rate or $1,800.00. The lease spaced as described in Paragraph 2 herein is calculated at 641 square feet. The annual lease amount based on this square footage is exceed by the $1,800.00 minimum annual amount per year. Therefore, the annual lease amount is $1,800.00 or $150.00 per month. B. Monthly Rent: Tenant will pay Landlord monthly rent in the amount of $150.00 for each full month during this lease. The first full month’s rent is due and payable not later than October 1, 2026. Thereafter, Tenant will pay the monthly rent so that Landlord receives the monthly rent on or before the first day of each month during this lease. Weekends, holidays, and mail delays do not excuse Tenant’s obligation to timely pay rent. C. Place of Payment: Tenant will remit all amounts due to Landlord under this lease to the following person or entity at the place stated below and shall make all payments payable to the named person or entity. Landlord may later designate, in writing, another person or place to which Tenant must remit amounts due under this lease. 61 Page 2 of 12 TCCOC LEASE Name: City of The Colony, Texas Address: Parks and Recreation Department 5151 North Colony Boulevard, The Colony, TX 75056 D. Method of Payment: (1) Tenant must pay all rent timely and without demand, deduction, or offset, except as permitted by law or this lease. (2) Time is of the essence for the payment of rent (strict compliance with rental due dates is required). (3) If Tenant fails to timely pay any amounts due under this lease or if any check of Tenant is not honored by the institution on which it was drawn, Landlord may require Tenant to pay such amount and any subsequent amounts under this lease in certified funds. This paragraph does not limit Landlord from seeking other remedies under this lease for Tenant’s failure to make timely payments with good funds. E. Rent Increases: There will be no rent increases through the primary term. Landlord may increase the rent that will be paid through any subsequent term by providing at least 45 days written notice to Tenant. 6. LATE CHARGES: A. If Landlord does not actually receive a rent payment in the full amount at the designated place of payment by 11:59 p.m. on the 1st day of the month in which it is due, Tenant will pay Landlord for each late payment: (1) an initial late charge on the 5th day of the month equal to $10.00 and (2) additional late charges of $5.00 per day beginning on the 6th day of the month until rent and late charges are paid in full. Total late charges (initial and additional) may not exceed $50.00 in any one month. B. For the purposes of paying rent and any late charges, the mailbox is not the agent for receipt for Landlord (the postmark date is not the date Landlord receives the payment). The parties agree that the late charge is based on a reasonable estimate of uncertain damages to the Landlord that are incapable of precise calculation and result from late payment of rent. Landlord’s acceptance of a late charge does not waive Landlord’s right to exercise remedies under Paragraph 19. 7. RETURNED CHECKS: Tenant will pay Landlord $25.00 for each check Tenant tenders to Landlord which is returned or not honored by the institution on which it is drawn for any reason, 62 Page 3 of 12 TCCOC LEASE plus any late charges until Landlord receives payment. Tenant must make any returned check good by paying such amount(s) plus any associated charges in certified funds. 8. SECURITY DEPOSIT: A. Security Deposit: Tenant has previously paid a security deposit to Landlord in the amount of $360.00. “Security deposit” has the meaning assigned to that term in Section 92.102 of the Texas Property Code. B. Interest: No interest or income will be paid to Tenant on the security deposit. Landlord may place the security deposit in an interest-bearing or income-producing account and any interest or income earned will be paid to Landlord or Landlord’s representative. C. Refund: Tenant must give Landlord at least forty-five (45) days written notice of surrender before Landlord is obligated to refund or account for the security deposit. D. Deductions: (1) Landlord may deduct reasonable charges from the security deposit for: (a) damages to the Property, excluding normal wear and tear; (b) costs for which Tenant is responsible to clean, deodorize, and maintain the Property; (c) unpaid or accelerated rent; (d) unpaid late charges; (e) replacing unreturned keys, garage door openers, security devices, or other components; (f) the removal of unauthorized locks or fixtures installed by Tenant; (g) Landlord’s cost to access the Property if made inaccessible by Tenant; (h) packing, removing, and storing abandoned property; (i) removing abandoned or illegally parked vehicles; (j) costs of reletting (as is provided for in Paragraph 19), if Tenant is in default; (k) attorney’s fees, costs of court, costs of service, and other reasonable costs incurred in any legal proceeding against Tenant; 63 Page 4 of 12 TCCOC LEASE (l) mailing or delivery costs associated with sending notices to Tenant for any violations of this lease; and (m) any other unpaid charges or fees or other items Tenant is responsible to pay under this lease. (2) If deductions exceed the security deposit, Tenant will pay to Landlord the excess within 10 days after Landlord makes written demand. 9. ACCESS BY LANDLORD: Landlord shall have access to the building at all times in order to facilitate routine and emergency maintenance, and necessary storage of any city property associated with the use of the building. 10. MOVE-OUT: A. Move-Out Condition: When this lease ends, Tenant will surrender the Property in the same or similar condition as when received, normal wear and tear expected. Tenant will leave the Property in a clean condition free of all trash, debris, and any personal property. Tenant may not abandon the Property. B. Definitions: (1) “Normal wear and tear” means deterioration that occurs without negligence, carelessness, accident, or abuse outside of normal expectations associated with the normal use of the facility. (2) “Surrender” occurs when all occupants have vacated the Property, in Landlord’s reasonable judgment, and one of the following events occurs: (a) the date Tenant specifies as the move-out or termination date in a written notice to Landlord has passed; or (b) Tenant returns keys and access devices that Landlord provided under this lease. (3) “Abandonment” occurs when all of the following occur: (a) all occupants have vacated the Property, in Landlord’s reasonable judgment; (b) Tenant is in breach of this lease by not timely paying rent; and (c) Landlord has delivered written notice to Tenant, by affixing it to the inside of the main entry door or if the Landlord is prevented from entering the Property by affixing it to the outside of the main entry door, stating that Landlord considers the Property abandoned, and Tenant fails to respond to the affixed 64 Page 5 of 12 TCCOC LEASE notice by the time required in the notice, which will not be less than 2 days from the date the notice is affixed to the main entry door. C. Personal Property Left After Move-Out: (1) If Tenant leaves any personal property in the Property after surrendering or abandoning the Property Landlord may: (a) dispose of such personal property in the trash or a landfill; (b) give such personal property to a charitable organization; or (c) store and sell such personal property by following procedures in Section 54.045(b)-(e) of the Texas Property Code (2) Tenant must reimburse Landlord all Landlord’s reasonable costs under Paragraph 10 C(1) for packing, removing, storing, and selling the personal property left in the Property after surrender or abandonment. 11. PROPERTY MAINTENANCE: A. Tenant’s General Responsibilities: By taking possession of the Property, Tenant shall be deemed to have accepted the Property “AS IS.” Tenant, at Tenant’s expense, must: (1) keep the Property clean and sanitary; (2) promptly dispose of all garbage in appropriate receptacles; (3) supply and replace all batteries for smoke detectors, carbon monoxide detectors and other devices (of the same type and quality that are in the property on the Commencement Date); (4) take action to promptly eliminate any dangerous condition on the Property; (5) take all necessary precautions to prevent broken water pipes due to freezing or other causes; (6) remove any standing water; (7) know the location and operation of the main water cut-off valve and all electric breakers and how to switch the valve or breakers off at appropriate times to mitigate any potential damage; and (8) promptly notify Landlord, in writing, of all needed repairs. 65 Page 6 of 12 TCCOC LEASE B. Prohibitions: If Tenant installs any fixtures on the Property, authorized or unauthorized, such as additional smoke detectors, locks, alarm systems, cables, satellite dishes, or other fixtures, such fixtures will become the property of the Landlord. Except as otherwise permitted by law, this lease, or in writing by Landlord, Tenant may not: (1) remove any part of the property or any of Landlord’s personal property from the Property; (2) remove, change, add, or rekey any lock; (3) make holes in the woodwork, floors, or walls, except that a reasonable number of small nails may be used to hang pictures in sheetrock and grooves in paneling; (4) install additional phone or video cables, outlets, antennas, satellite receivers, or alarm systems; (5) keep or permit any material which causes any liability or fire and extended insurance coverage to be suspended or canceled or any premiums to be increased; (6) dispose of any environmentally detrimental substance (for example, motor oil or radiator fluid) on the Property; or (7) cause or allow any lien to be filed against any portion of the Property. C. Failure to Maintain: If Tenant fails to comply with this Paragraph Landlord may, in addition to exercising Landlord’s remedies under Paragraph 19, perform whatever action Tenant is obligated to perform and Tenant must immediately reimburse Landlord the reasonable expenses that Landlord incurs. 12. REPAIRS: A. Repair Requests: All requests for repairs must be in writing and delivered to Designated Agent or Landlord. If Tenant is delinquent in rent at the time a repair notice is given, Landlord is not obligated to make the repair. B. Completion of Repairs: (1) Tenant may not repair or cause to be repaired any condition listed in Paragraph 12(C)(1), regardless of the cause, without Landlord’s permission. All decisions regarding repairs, including the completion of any repair, whether to repair or replace the item, will be at Landlord’s sole discretion. (2) Landlord is not obligated to complete a repair on a day other than a business day unless required to do so by the Property Code. C. Payment of Repair Costs: Repair costs will be paid as follows: 66 Page 7 of 12 TCCOC LEASE (1) Repairs that Landlord will Pay Entirely: Landlord will pay the entire cost to repair: (a) a condition caused by the Landlord or the negligence of the Landlord; (b) wastewater stoppages or backups caused by deterioration, breakage, roots, ground condition, faulty construction, or malfunctioning equipment. (c) a condition that adversely affects the health or safety of an ordinary tenant which is not caused by Tenant, an occupant, a member of Tenant’s family, or a guest or invitee of Tenant; and (d) a condition in the following items which is not caused by Tenant or Tenant’s negligence: (1) heating and air conditioning systems; (2) electrical repairs; (3) damage to doors, windows, or screens (4) water heaters; or (5) water penetration from structural defects. (2) Repairs that Tenant will Pay Entirely: Tenant will pay the entire cost to repair: (a) a condition caused by Tenant, an occupant, a member of Tenant’s organization, or a guest or invitee of Tenant (a failure to timely report an item in need of repair or the failure to properly maintain an item may cause damage for which Tenant may be responsible); (b) damage from wastewater stoppages caused by foreign or improper objects in lines that exclusively service the Property; and (c) damage from windows or doors left open. D. In the event Tenant and/or its sublessee desires to make alterations or improvements to the Leased Premises, Tenant must comply with the requirements of Section 2252.909 of the Texas Government Code. (1) Tenant and/or its sublessee must include in each contract for the construction, alteration, or repair of an improvement to the Leased Premises a condition that the contractor: (1) execute a payment bond that conforms to Subchapter I, Chapter 53, Property Code; and (2) execute a performance bond in an amount equal to the amount of the contract for the protection of the Landlord and conditioned on the faithful performance of the contractor’s work in accordance with the plans, specifications, and contract documents; and 67 Page 8 of 12 TCCOC LEASE (2) Tenant and/or its sublessee must provide to the Landlord a notice of commencement at least 90 days before the date the construction, alteration, or repair of any improvement to the Leased Premises begins. Said notice of commencement must contain the following: (A) identify the public property where the work will be performed; (B) describe the work to be performed; (C) state the total cost of the work to be performed; (D) include copies of the performance and payment bonds required under Subsection (1); and (E) include a written acknowledgment signed by the contractor stating that copies of the required performance and payment bonds will be provided to all subcontractors not later than the fifth day after the date a subcontract is executed. (3) Consistent with Section 2252.909(d) of the Texas Government Code, the Landlord on or before the 10th day after the date the Landlord receives a notice of commencement for the construction, alteration, or repair of an improvement to the Leased Premises required under Subsection (2), the Landlord may notify the Tenant and/or its sublessee that the construction, alteration, or repair may not proceed. 13. SECURITY DEVICES AND EXTERIOR DOOR LOCKS: All notices or requests by Tenant for rekeying, changing, installing, repairing, or replacing security devices must be in writing. Installation of additional security devices or additional rekeying or replacement of security devices desired by Tenant will be paid by Tenant in advance and may be installed only by contractors authorized by Landlord. 14. SMOKE DETECTORS: Subchapter F, Chapter 92, Property Code requires the Property to be equipped with smoke detectors in certain locations. Requests for additional installation, inspection, or repair of smoke detectors must be in writing. Disconnecting or intentionally damaging a smoke detector or removing a battery without immediately replacing it with a working battery may subject Tenant to civil penalties and liability for damages and attorney fees under Section 92.2611 of the Texas Property Code. 15. LIABILITY: Unless caused by Landlord, Landlord is not responsible to Tenant, Tenant’s guests, members, or occupants for any damages, injuries, or losses to person or property caused by fire, flood, water leaks, ice, snow, hail, winds, explosion, smoke, interruption of utilities, theft, burglary, robbery, assault, vandalism, other persons, condition of the Property, environmental contaminants (for example, carbon monoxide, asbestos, radon, lead-based paint, mold, fungus, etc.), or other occurrences or casualty losses. Tenant will promptly reimburse Landlord for any loss, property damage, or cost of repairs or service to the Property caused by Tenant, Tenant’s guests, or any occupants. 16. HOLDOVER: If Tenant fails to vacate the Property at the time this lease ends Tenant will pay Landlord rent for the holdover period and indemnify Landlord and prospective tenants for damages, including but not limited to lost rent, lodging expenses, costs of eviction, and attorney’s 68 Page 9 of 12 TCCOC LEASE fees. Rent for any holdover period will be three (3) times the monthly rent, calculated on a daily basis, and will be immediately due and payable daily without notice or demand. 17. SUBORDINATION: This lease and Tenant’s leasehold interest are and will be subject, subordinate, and inferior to: (i) any lien or encumbrance now or later placed on the Property by Landlord; (ii) all advances made under and such lien or encumbrance; (iii) the interest payable on any such lien or encumbrance; (iv) any and all renewals and extensions of any such lien or encumbrance; (v) any restrictive covenant; and (vi) the rights of any owners’ association affecting the Property. 18. CASUALTY LOSS OR CONDEMNATION: Section 92.054 of the Texas Property Code governs the rights and obligations of the parties regarding a casualty loss to the Property. Any proceeds, payment for damages, settlements, awards, or other sums paid because of a casualty loss to the Property will be Landlord’s sole property. For the purpose of this lease, any condemnation of all or a part of the property is a casualty loss. 19. DEFAULT: A. If Landlord fails to comply with this lease, Tenant may seek any relief provided by law. B. If Tenant fails to comply with this lease, Tenant will be in default and: (1) Landlord may terminate Tenant’s right to occupy the Property by providing Tenant with at least ten (10) days written notice to vacate; (2) all unpaid rents which are payable during the remainder of this lease or any renewal period will be accelerated without notice or demand; and (3) Tenant will be liable for: (a) any lost rent; (b) Landlord’s cost of reletting the Property including but not limited to leasing fees, advertising fees, utility charges, and other fees reasonably necessary to relet the Property; (c) repairs to the Property for use beyond normal wear and tear; (d) all Landlord’s costs associated with eviction of Tenant, including but not limited to attorney’s fees, court costs, costs of service, and prejudgment interest; (e) all Landlord’s costs associated with collection of amounts due under this lease, including but not limited to collection fees, late charges, and returned check charges; and (f) any other recovery to which Landlord may be entitled by law. 69 Page 10 of 12 TCCOC LEASE C. Notice to vacate under Paragraph 19B(1) may be by any means permitted by Section 24.005 of the Texas Property Code. D. Landlord will attempt to mitigate any damage or loss caused by Tenant’s breach by attempting to relet the Property to acceptable tenants and reducing Tenant’s liability accordingly. 20. EARLY TERMINATION: This lease begins on the Commencement Date and ends on the Expiration date unless: (i) renewed under Paragraph 4; (ii) extended by written agreement of the parties; or (iii) terminated earlier under Paragraph 19, by agreement of the parties, applicable law, or this Paragraph. A. Early Termination Option: Tenant(s) in good standing (those who are in compliance with the lease) have the option to terminate this lease prior to the normal end of term or during any future renewal by providing the Landlord all of the following a) a minimum 45 day written notice, b) providing the last date of occupancy and c) submitting certified funds (Cashier’s Check, money orders or wire transfer) as an “Early Termination Fee” in the amount of 150% of one month’s rent at the time notice is provided. Rent will be prorated on a daily basis through the revised end of term. Tenant is required to conform to all other terms of the lease or the Early Termination Option will be forfeit and the tenant will be responsible for the full amount of rent as allowed by the lease. B. Assignment and Subletting: (1) Tenant may not assign this lease or sublet the Property without Landlord’s written consent. (2) If Tenant requests an early termination of this lease under this Paragraph 20A, Tenant may attempt to find a replacement tenant and may request Landlord to do the same. Landlord may, but is not obligated to, attempt to find a replacement tenant under this paragraph. (3) Any assignee, subtenant, or replacement tenant must, in Landlord’s discretion, be acceptable as a tenant and must sign: (a) a new lease with terms not less favorable to Landlord than this lease or otherwise acceptable to Landlord; (b) a sublease with terms approved by Landlord; or (c) an assignment of this lease in a form approved by Landlord. (4) Unless expressly stated otherwise in an assignment or sublease, Tenant will not be released from Tenant’s obligations under this lease because of an assignment or sublease. An assignment of this lease or a sublease of this lease without Landlord’s written consent is voidable by Landlord. 21. Notice to Parties: 70 Page 11 of 12 TCCOC LEASE A. Notice to Landlord shall be delivered to : City of The Colony Attn: Brant Shallenburger 6800 Main Street The Colony, TX 75056 B. Notice to Tenant shall be delivered to: The Colony Chamber of Commerce P.O. Box 560006 The Colony, TX 75056 22. ATTORNEY’S FEES: Any person who is a prevailing party in any legal proceeding brought under or related to the transaction described in this lease is entitled to recover prejudgment interest, attorney’s fees, costs of service, and all other costs of the legal proceeding from the non-prevailing party. 23. AGREEMENT OF PARTIES: A. Entire Agreement: There are no oral agreements between Landlord and Tenant. This lease contains the entire agreement between Landlord and Tenant and may not be changed except by written agreement. B. Binding Effect: This lease is binding upon and inures to the benefit of the parties to this lease and their respective heirs, executors, administrators, successors, and permitted assigns. C. Joint and Several: All Tenants are jointly and severally liable for all provisions of this lease. Any act or notice to, refund to, or signature of, any one or more of the Tenants regarding any term of this lease, its extension, its renewal, or its termination is binding on all Tenants executing this lease. D. Waiver: Landlord’s past delay, waiver, or non-enforcement of a rental due date or any other right will not be deemed to be a waiver of any other breach by Tenant or any other right in this lease. E. Severability Clause: Should a court find any clause in this lease unenforceable, the remainder of this lease will not be affected and all other provisions in this lease will remain enforceable. F. Controlling Law: The laws of the State of Texas govern the interpretation, validity, performance, and enforcement of this lease. Venue for any action arising under this lease shall lie in the state district and county courts of Denton County, Texas. 71 Page 12 of 12 TCCOC LEASE G. Signage. Tenant shall have the right to erect signs on any portion of the Property only in accordance with applicable laws, ordinances, and regulations. H. Taxes. Landlord shall be liable for any taxes levied or accessed against the Property, excluding any taxes levied or assessed for any personal property, furniture, or fixtures placed by the Tenant on the Property. Tenant shall be liable for all taxes levied or assessed against any personal property, furniture or fixtures placed by Tenant on the Property. Executed and agreed to this ___ day of ________, 2026. _______________________________ ____________________________ Troy Powell Jacqueline Egert City Manager Chairman of the Board of Directors City of The Colony The Colony Chamber of Commerce Approved as to form: _______________________________ Jeff Moore, City Attorney 72 Up Men’sRestroom Women’sRestroom Men’sRestroomWomen’sRestroom Exhibit "A" 73 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2026 - ______ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AUTHORIZING THE CITY MANAGER TO EXECUTE A LEASE AGREEMENT WITH THE COLONY CHAMBER OF COMMERCE FOR A SPACE IN THE LIBRARY BUILDING LOCATED AT 6800 MAIN STREET, THE COLONY, TEXAS FOR THE FISCAL YEAR 2026-27; PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of The Colony, Texas, approved a building use policy establishing guidelines for the use and rental of City facilities; and WHEREAS, The Colony City Council has determined it to be in the best interest of its citizens to enter into a Lease Agreement with The Colony Chamber of Commerce for a space in the Library Building located at 6800 Main Street, The Colony, Texas for the Fiscal Year 2026-27. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1. That the City Council of the City of The Colony, Texas hereby authorizes the City Manager to execute a Lease Agreement with The Colony Chamber of Commerce for a space in the Library Building located at 6800 Main Street, The Colony, Texas for the Fiscal Year 2026-2027. Section 2. That this resolution shall take effect immediately from and after its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15TH DAY OF September 2026. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: _____________________________________ Tina Stewart, TRMC, CMC, City Secretary 74 APPROVED AS TO FORM: _____________________________________ Jeffrey L. Moore, City Attorney 75 Agenda Item No: 5.1 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: Finance Item Type: Resolution Agenda Section: regular agenda items Suggested Action: Discuss and consider all matters incident and related to 'The Colony Community Development Corporation Sales Tax Revenue Bonds, Series 2026,' including the approval of the issuance of such Bonds by The Colony Community Development Corporation and the approval of the bond resolution to be adopted by the Corporation in connection therewith. (Bredehoeft) Background: Attachments: Res. 2026-xxx COLONY CDC SALES TAX REV 2026.docx 76 CITY OF THE COLONY, TEXAS RESOLUTION NO. 2026 - _____ A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS RELATING TO THE “THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS, SERIES 2026", INCLUDING THE APPROVAL OF THE ISSUANCE THEREOF BY THE COLONY COMMUNITY DEVELOPMENT CORPORATION AND THE APPROVAL OF THE BOND RESOLUTION TO BE ADOPTED BY THE CORPORATION AUTHORIZING THE ISSUANCE OF SUCH BONDS; RESOLVING OTHER MATTERS INCIDENT AND RELATED TO THE ISSUANCE OF SUCH BONDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, The Colony Community Development Corporation (the “Corporation”) has been duly created and organized pursuant to the provisions of the Development Corporation Act, V.T.C.A., Local Government Code, Title 12, Subtitle C1, as amended (formerly known as the Development Corporation Act of 1979, Tex. Rev. Civ. Stat. Ann. Article 5190.6) (the “Act”), specifically Chapters 501, 502 and 505 of the Local Government Code; and WHEREAS, the City of The Colony, Texas (the “City”) has been authorized by the voters of the City, pursuant to an election held January 17, 1998, to levy and collect a ½ of 1% local sales and use tax for purposes authorized by Chapter 505 of the Act for land, buildings, equipment, facilities, and improvements required or suitable for use for sports, athletic, entertainment, tourist convention, and public park purposes and events, including but not limited to community centers, libraries, and hike and bike trails, and the promotion or development of new or expanded business enterprises (the “Gross Sales Tax”); and WHEREAS, the Corporation is empowered to issue bonds for the purpose of defraying the cost of any “project” pursuant to Chapters 501 and 505 of the Act, and WHEREAS, the Board of Directors of the Corporation (the “Board”) will consider the issuance of "The Colony Community Development Corporation Sales Tax Revenue Bonds, Series 2026" (the “Bonds”) to finance (i) the construction, renovation, improvement, and equipment of public parks and park facilities for the City of The Colony, Texas, including the renovation of a recreation center, the construction of pickleball courts, improvements and upgrades to the City's athletic parks and aquatic park, and the development of trails, playgrounds, and outdoor restrooms (the “Project”), (ii) the costs of issuance associated with the issuance of the Bonds, and (iii) the funding of a reserve fund; and WHEREAS, the Corporation's bylaws provide that no obligations shall be authorized or sold by the Corporation unless the City Council of the City shall approve the obligations by action taken no more than sixty (60) days prior to the delivery of the obligations and Section 501.204 of the Act requires the City Council of the City approve the resolution of the Corporation providing for the issuance of the Bonds no more than sixty (60) days prior to the delivery of the Bonds; 306855350.3/1001400940 77 306855350.3/1001400940 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: Section 1: The bond resolution of the Corporation authorizing the issuance of “The Colony Community Development Corporation Sales Tax Revenue Bonds, Series 2026" (the “Bond Resolution”), substantially in the form attached hereto as Exhibit A is hereby approved. The issuance of the Bonds by the Corporation, as described in the Bond Resolution, is hereby approved. The Bonds are being issued to finance the costs of the Project, which will be located within the City of The Colony, Texas. Section 2: The approvals herein given are in accordance with Section 501.204 of the Act and the Corporation's bylaws, and the Bonds shall never be construed as an indebtedness or pledge of the City, or the State of Texas (the "State"), within the meaning of any constitutional or statutory provision, and the owner of the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation (other than sales tax proceeds as authorized pursuant to the Act) or any other revenues of the Corporation, the City, or the State, except those revenues assigned and pledged by the Bond Resolution. Section 3: The City hereby covenants to promptly collect and remit to the Corporation the one-half of one percent (1/2 of 1%) sales and use tax (the “Gross Sales Tax Revenues,” which, as further defined in the Bond Resolution, excludes taxable sales and transactions occurring within the Zone and is net of Comptroller charges and retentions) in accordance with the terms of the Bond Resolution and the Act to provide for the prompt payment of the Bonds, and to assist and cooperate with the Corporation in the enforcement and collection of sales and use taxes imposed on behalf of the Corporation. The Sales Tax Remittance Agreement, by and between the Corporation and the City substantially in the form attached hereto as Exhibit B and incorporated herein by reference as a part of this Resolution for all purposes, is hereby approved as to form and content, and such Sales Tax Remittance Agreement, together with such changes or revisions as may be necessary to comply with Texas law or to carry out the intents and purposes of this Resolution, is hereby authorized to be executed by the Mayor or other authorized officials of the City for and on behalf of the City and as the act and deed of this governing body; and such Sales Tax Remittance Agreement as executed by such officials shall be deemed approved by the City and constitute the Sales Tax Remittance Agreement herein approved. Section 4: The Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance and City Secretary of the City are hereby authorized, individually or collectively, to execute and deliver such endorsements, instruments, certificates, documents, or other papers necessary and advisable to carry out the intent and purposes of this Resolution and the Bond Resolution. Section 5: It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Texas Government Code, Chapter 551, as amended. Section 6: This Resolution shall be in force and effect from and after its passage on the date shown below. 78 306855350.3/1001400940 3 [remainder of page left blank intentionally] 79 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS 15TH DAY OF SEPTEMBER 2026. ATTEST: Richard Boyer, Mayor City of The Colony, Texas _ Tina Stewart, TRMC, CMC, City Secretary (City Seal) 306855350.3/1001400940 [signature page of City Resolution] 80 A-1 306855350.3/1001400940 EXHIBIT A BOND RESOLUTION AUTHORIZING THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS, SERIES 2026 81 306796300.2/1001400940 THE COLONY COMMUNITY DEVELOPMENT CORPORATION A RESOLUTION authorizing the issuance of “THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS, SERIES 2026”; pledging certain Pledged Revenues of the Corporation, including Gross Sales Tax Revenues, to the payment of the principal of and interest on said Bonds; enacting other provisions incident and related to the issuance, payment, security and delivery of said Bonds, including the approval of a Paying Agent/Registrar Agreement, a Sales Tax Remittance Agreement and the approval and distribution of an Official Statement; and providing an effective date. WHEREAS, The Colony Community Development Corporation (the “Corporation”) has been duly created and organized pursuant to the provisions of the Development Corporation Act, V.T.C.A, Local Government Code, Title 12, Subtitle C1, as amended (formerly known as the Development Corporation Act of 1979, Tex. Rev. Civ. Stat. Ann. Article 5190.6) (the “Act”), specifically Chapters 501, 502, and 505 of the Local Government Code; and WHEREAS, the City of The Colony, Texas (the “City”), has been authorized by the voters of the City, pursuant to an election held January 17, 1998, to levy and collect a ½ of 1% local sales and use tax for purposes authorized by Chapter 505 of the Act for land, buildings, equipment, facilities, and improvements required or suitable for use for sports, athletic, entertainment, tourist convention, and public park purposes and events, including but not limited to community centers, libraries, and hike and bike trails, and the promotion or development of new or expanded business enterprises (the “Gross Sales Tax”); and WHEREAS, in accordance with, and to the extent required by, Section 505.159 of the Act, the Corporation held at least one public hearing on the Project before spending money to undertake the Project; and WHEREAS, in accordance with Section 505.160 of the Act, notice of the Corporation’s intention to undertake and spend funds on the Project was published on June 24, 2026 in the Dallas Morning-News, a newspaper of general circulation in the City; and WHEREAS, no petition from the City’s registered voters requesting an election be held prior to undertaking the Projects has been presented to or filed with the Mayor, City Secretary or any other official of the City on or prior to the date of the passage of this Resolution; and WHEREAS, the city council of the City designated a contiguous area as Tax Increment Reinvestment Zone Number One, City of The Colony, Texas (the “Zone”) pursuant to the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as amended; and WHEREAS, the Corporation has determined the pledge of the Pledged Revenues should be limited, in the case of Gross Sales Tax Revenues, only to those revenues collected from within the City but excluding those taxable sales and transactions that occur within the boundaries of the Zone; and WHEREAS, the Board of Directors of the Corporation finds and determines that bonds of the Corporation in the principal amount of $ should be issued and sold to finance (i) 82 2 306796300.2/1001400940 construction, renovation, improvement, and equipment of public parks and park facilities for the City, including the renovation of a recreation center, the construction of pickleball courts, improvements and upgrades to the City's athletic parks and aquatic park, and the development of trails, playgrounds, and outdoor restrooms (the “Project”) (ii) the costs of issuance associated with the issuance of the Bonds and (iii) the funding of a reserve fund; and WHEREAS, the Board of Directors hereby further finds and determines that such revenue bonds shall be payable from certain “Pledged Revenues” (hereinafter defined) of the Corporation, including sales tax receipts of the Corporation in the manner and to the extent hereinafter provided; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COLONY COMMUNITY DEVELOPMENT CORPORATION: Section 1. Authorization Designation Principal Amount - Purpose. Bonds of the Corporation shall be and are hereby authorized to be issued in the aggregate principal amount of $ to be designated and bear the title “THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX REVENUE BONDS, SERIES 2026”, hereinafter referred to as the “Bonds”, for the purpose of (i) financing costs of the Project, (ii) paying the costs of issuance associated with the issuance of the Bonds, and (iii) to fund a reserve fund, in conformity with the Constitution and laws of the State of Texas, including the Act. Section 2. Fully Registered Obligations - Authorized Denominations - Stated Maturities – Bond Date. The Bonds shall be issued as fully registered obligations, without coupons, shall be dated September 15, 2026 (the “Bond Date”), shall be in denominations of $5,000 or any integral multiple thereof (within a stated maturity), shall be numbered consecutively from one (1) upward and shall become due and payable annually on August 15 in each of the years and in principal amounts (the “Stated Maturities”) and bear interest at per annum rates in accordance with the following schedule: Year of Principal Interest Maturity Amount Rate % 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 83 3 306796300.2/1001400940 2046 2047 2048 2049 2050 2051 2052 2053 2054 2055 2056 The Bonds shall bear interest on the unpaid principal amounts from the date of initial delivery of the Bonds at per annum rates shown above (calculated on the basis of a 360 day year of twelve 30 day months). Interest on the Bonds shall be payable on August 15 and February 15 in each year, commencing February 15, 2027, until maturity or prior redemption. Section 3. Terms of Payment - Paying Agent/Registrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the “Holders”) appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of U.S. Bank Trust Company, National Association, Houston, Texas, to serve as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, exchange and transfer of the Bonds (the “Security Register”) shall at all times be kept and maintained on behalf of the Corporation by the Paying Agent/Registrar, all as provided herein, in accordance with the terms and provisions of a “Paying Agent/Registrar Agreement”, substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying Agent/Registrar and the Corporation may prescribe. The President and/or Vice President and Secretary of the Board of Directors of the Corporation are hereby authorized to execute and deliver such Paying Agent/Registrar Agreement in connection with the delivery of the Bonds. The Corporation covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid in full and discharged. Any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the Corporation agrees to promptly cause a written notice to be sent to the Holder affected by United States mail, first-class, postage prepaid, which notice shall identify and give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or upon their earlier redemption, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its designated offices in St. Paul, Minnesota, or with respect to a successor Paying Agent/Registrar, at the designated offices of such successor (the “Designated Payment/Transfer Office”). Interest on the Bonds shall be paid to the Holders whose names appear in the Security Register at the close of business on the Record Date (last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States mail, first-class, postage prepaid, to the address 84 4 306796300.2/1001400940 of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located is authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a non-payment of interest on one or more maturities on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment for such maturity or maturities (a “Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Corporation. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class, postage prepaid, to the address of each Holder of such maturity or maturities appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. Section 4. Redemption. (a) Optional Redemption. The Bonds having Stated Maturities on and after August 15, 2037 shall be subject to redemption prior to maturity, at the option of the Corporation, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on August 15, 2036 or on any date thereafter at the redemption price of par plus accrued interest to the redemption date. At least forty five (45) days prior to a date set for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the Corporation shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the Corporation to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the Corporation. (b) Mandatory Redemption. [The Bonds having Stated Maturities of August 15 in each of the years 20 , 20 , 20 , 20 and 20 (collectively, the “Term Bonds”) shall be subject to mandatory redemption in part prior to maturity at the price of par plus accrued interest to the mandatory redemption date on the respective dates and in principal amounts as follows: Term Bonds Maturing August 15, 20 Term Bonds Maturing August 15, 20 Redemption Date Principal Amount ($) Redemption Date Principal Amount ($) 20 20 20 * 20 * * stated maturity * stated maturity Term Bonds Maturing August 15, 20 Term Bonds Maturing August 15, 20 85 5 306796300.2/1001400940 Term Bonds Maturing August 15, 20 Term Bonds Maturing August 15, 20 Redemption Date Principal Amount ($) Redemption Date Principal Amount ($) Redemption Date Principal Amount ($) Redemption Date Principal Amount ($) 2041 20 20 * 20 * 20 20 20 * 20 * * stated maturity * stated maturity Term Bonds Maturing August 15, 20 Redemption Date Principal Amount ($) 20 20 * * stated maturity Approximately forty-five (45) days prior to each mandatory redemption date for the Term Bonds, the Paying Agent/Registrar shall select by lot the numbers of the Term Bonds within the applicable Stated Maturity to be redeemed on the next following August 15 from moneys set aside for that purpose in the Bond Fund (as hereinafter defined). Any Term Bond not selected for prior redemption shall be paid on the date of their Stated Maturity. The principal amount of the Term Bonds for a Stated Maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the Corporation, by the principal amount of Term Bonds of like Stated Maturity which, at least 50 days prior to the mandatory redemption date, (1) shall have been acquired by the Corporation at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions set forth in paragraph (a) of this Section and not theretofore credited against a mandatory redemption requirement.] (c) Selection of Bonds for Redemption. If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bond as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bond by $5,000 and shall select the Bonds to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States mail, first-class, postage prepaid, in the name of the Corporation and at the Corporation’s expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the 86 6 306796300.2/1001400940 Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys sufficient for the payment of such Bond (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. (e) Conditional Notice of Redemption. With respect to any optional redemption of the Bonds, unless certain prerequisites to such redemption required by this Resolution have been met and moneys sufficient to pay the principal of and premium, if any, and interest on the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption. If a conditional notice of redemption is given and such prerequisites to the redemption are not satisfied or sufficient moneys are not received, such notice shall be of no force and effect, the Corporation shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. Section 5. Registration - Transfer - Exchange of Bonds - Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each registered owner of the Bonds issued under and pursuant to the provisions of this Resolution. Any Bond may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of a Bond (other than the Initial Bond referenced in Section 8 hereof) at the Designated Payment/Transfer Office of the Paying Agent/Registrar, one or more new certificates evidencing the Bonds, in authorized denominations, of like Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer shall be registered and issued to the assignee or transferee of the previous Holders. At the option of the Holder, Bonds (other than the Initial Bond referenced in Section 8 hereof) may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer Office of the Paying Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new printed certificates evidencing the Bonds, executed on behalf of, and f urnished by, the Corporation, to the Holder requesting the exchange. 87 7 306796300.2/1001400940 All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the Designated Payment/Transfer Office of the Paying Agent/Registrar, or sent by United States mail, first-class, postage prepaid, to the Holder and, upon the delivery thereof, the same shall be valid obligations of the Corporation, evidencing the same obligation to pay, and entitled to the same benefits under this Resolution, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be “Predecessor Bonds,” evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term “Predecessor Bonds” shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered and delivered in lieu thereof pursuant to Section 26 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the Corporation nor the Paying Agent/Registrar shall be required to transfer or exchange any Bond called for redemption, in whole or in part, within forty-five (45) days of the date fixed for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. Section 6. Book-Entry-Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Bonds, the Corporation hereby approves and authorizes the use of “Book Entry Only” securities clearance, settlement and transfer system provided by The Depository Trust Company (“DTC”), a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representation, by and between the Corporation and DTC (the “Depository Agreement”). Pursuant to the Depository Agreement and the rules of DTC, the Bonds shall be deposited with DTC who shall hold said Bonds for its participants (the “DTC Participants”). While the Bonds are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the “Beneficial Owners”) being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds or otherwise ceases to provide book entry clearance and settlement of securities transactions in general or the Corporation determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the Corporation covenants and agrees with the Holders of the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. 88 8 306796300.2/1001400940 Section 7. Execution - Registration. The Bonds shall be executed on behalf of the Corporation by either the President or Vice President of the Board of Directors of the Corporation [under its seal reproduced or impressed thereon] and attested by the Secretary of the Board of Directors of the Corporation. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the Corporation on the date of adoption of this Resolution shall be deemed to be duly executed on behalf of the Corporation, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial purchasers and with respect to Bonds delivered in subsequent exchanges and transfers. No Bond shall be entitled to any right or benefit under this Resolution, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 9(c), executed manually or by facsimile by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9(d), manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate upon any Bond duly signed shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered and delivered. Section 8. Initial Bond. The Bonds herein authorized shall be initially issued as a single fully registered bond in the total principal amount noted in Section 1 and numbered T -1 (hereinafter called the “Initial Bond”) and the Initial Bond shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond shall be the Bond submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the Initial Bond, the Paying Agent/Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Bond delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. Section 9. Forms. (a) Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas (to be printed on the Initial Bond only), the Certificate of Registration, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Resolution and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends on insured Bonds and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the Board of Directors of the Corporation or determined by the officers executing such Bonds as evidenced by the execution thereof. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The Bonds, including the Initial Bond, shall be typewritten, printed, lithographed, or engraved or produced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. 89 9 306796300.2/1001400940 (b) Form of Definitive Bonds. REGISTERED NO. R- UNITED STATES OF AMERICA STATE OF TEXAS THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX REVENUE BOND SERIES 2026 REGISTERED $ Bond Date: Interest Rate: Stated Maturity: CUSIP NO: Delivery Date: September 15, % August 15, 20 October 15, 2026 2026 Registered Owner: Principal Amount: The Colony Community Development Corporation (hereinafter referred to as the “Corporation”), a non-profit corporation organized and existing under the laws of the State of Texas, including Chapters 501, 502, and 505 of the Texas Local Government Code, as amended (the “Act”), with its principal office located in the City of The Colony, Texas for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, solely from the revenues and sources pledged under the Resolution identified below, the Principal Amount stated above (or so much thereof as shall not have been paid upon prior redemption) on the Stated Maturity date specified above, and to pay interest on the unpaid principal amount hereof from the interest payment date next preceding the “Registration Date” of this Bond appearing below (unless this Bond bears a “Registration Date” as of an interest payment date, in which case it shall bear interest from such date, or unless the “Registration Date” of this Bond is prior to the initial interest payment date in which case it shall bear interest from the date of initial delivery of the Bonds) at the per annum rate of interest specified above; such interest being payable on August 15 and February 15 of each year, commencing February 15, 2027, until maturity or prior r edemption. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the St. Paul, Minnesota office (the “Designated Payment/Transfer Office”) of U.S. Bank Trust Company, National Association, Houston, Texas (the “Paying Agent/Registrar”). Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the resolution hereinafter referenced) whose name appears on the “Security Register” maintained by the Paying Agent/Registrar at the close of business on the “Record Date”, which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent United States mail, first-class, postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located is authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin 90 10 306796300.2/1001400940 or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $ (herein referred to as the “Bonds”) for the purpose of (i) financing costs of the Project, as defined in the Resolution, (ii) establishing a reserve fund for the payment of principal and interest on the Bonds and (iii) paying costs of issuance associated with the issuance of the Bonds, in conformity with the Constitution and laws of the State of Texas, including the Act, and pursuant to a Resolution adopted by the governing body of the Corporation (herein referred to as the “Resolution”). [The Bonds maturing on the dates hereinafter identified (the “Term Bonds”) are subject to mandatory redemption prior to maturity with funds on deposit in the Bond Fund established and maintained for the payment thereof in the Resolution, and shall be redeemed in part prior to maturity at the price of par and accrued interest thereon to the date of redemption, and without premium, on the dates and in the principal amounts as follows: Term Bonds Maturing August 15, 20 Term Bonds Maturing August 15, 20 Redemption Date Principal Amount ($) Redemption Date Principal Amount ($) 20 20 20 * 20 * * stated maturity * stated maturity Term Bonds Maturing August 15, 20 Term Bonds Maturing August 15, 20 Redemption Date Principal Amount ($) Redemption Date Principal Amount ($) 2041 20 20 * 20 * * stated maturity * stated maturity Term Bonds Maturing August 15, 20 Redemption Date Principal Amount ($) 20 20 * * stated maturity The particular Term Bonds of a Stated Maturity to be redeemed on each redemption date shall be chosen by lot by the Paying Agent/Registrar; provided, however, that the principal amount of Term Bonds for a Stated Maturity required to be redeemed on a mandatory redemption date may be reduced, at the option of the Corporation, by the principal amount of Term Bonds of like Stated Maturity which, at least 50 days prior to a mandatory redemption date, (1) shall have been acquired by the Corporation at a price not exceeding the principal amount of such Term Bonds plus accrued interest to the date of purchase thereof, and delivered to the Paying Agent/Registrar 91 11 306796300.2/1001400940 for cancellation or (2) shall have been redeemed pursuant to the optional redemption provisions appearing below and not theretofore credited against a mandatory redemption requirement.] The Bonds maturing on and after August 15, 20 may be redeemed prior to their Stated Maturities, at the option of the Corporation, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on August 15, 20 or on any date thereafter at the redemption price of par plus accrued interest thereon to the redemption date. At least thirty days prior to the date fixed for any redemption of Bonds, the Corporation shall cause a written notice of such redemption to be sent by United States mail, first-class, postage prepaid, to the registered owners of each Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Resolution. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and, if moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable from and after the redemption date on the principal amount hereof redeemed. In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided in the Resolution for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is called for redemption, in whole or in part, the Corporation and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the Holder within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond redeemed in part. With respect to any optional redemption of the Bonds, unless certain prerequisites to such redemption required by the Resolution have been met and moneys sufficient to pay the redemption price of the Bonds to be redeemed shall have been received by the Paying Agent/Registrar prior to the giving of such notice of redemption, such notice may state that said redemption is conditional upon the satisfaction of such prerequisites and receipt of such moneys by the Paying Agent/Registrar on or prior to the date fixed for such redemption. If a conditional notice of redemption is given and such prerequisites to the redemption are not satisfied or sufficient moneys are not received, such notice shall be of no force and effect, the Corporation shall not redeem such Bonds and the Paying Agent/Registrar shall give notice, in the manner in which the notice of redemption was given, to the effect that the Bonds have not been redeemed. The Bonds are payable solely from and equally and ratably secured by a pledge of the “Pledged Revenues” (as defined in the Resolution) received by the Corporation, including the receipts from a Sales Tax levied for the benefit of the Corporation pursuant to the Act and an election held in the City. The Bonds do not constitute a legal or equitable pledge, charge, lien or encumbrance upon any property of the Corporation or the City of The Colony, Texas (the “City”) except with respect to the “Pledged Revenues”. This Bond may not be paid in whole or in part from any property taxes raised or to be raised by the City and is not a debt of and does not give 92 12 306796300.2/1001400940 rise to a claim for payment against the City, except as to the sales and use tax revenues held by the City and required under the Act to be paid over to the Corporation. Neither the State of Texas, the City or any political corporation, subdivision or agency of the State of Texas shall be obligated to pay this Bond or the interest hereon and neither the faith and credit nor the taxing power of the State, the City or any other political corporation, subdivision or agency thereof is pledged to the payment of the principal of and interest on this Bond except as noted above. Subject to satisfying the terms and conditions prescribed therefor, the Corporation has reserved the right to issue additional revenue obligations payable, in whole or in part, from the Pledged Revenues and equally and ratably secured in like manner and effect as the Bonds. Reference is hereby made to the Resolution, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the security for the payment of the Bonds; the rights of Holders of the Bonds the terms and conditions for the issuance of additional obligations; the terms and conditions relating to the payment, transfer or exchange of this Bond; the conditions upon which the Resolution may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the Corporation and the Paying Agent/Registrar; the terms and provisions upon which the encumbrances, pledges, charges and covenants made therein may be discharged; and for the other terms and provisions contained therein. Capitalized terms used herein have the same meanings assigned in the Resolution. This Bond, subject to certain limitations contained in the Resolution, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The Corporation and the Paying Agent/Registrar, and any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the Corporation nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of non-payment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a “Special Record Date”) will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Corporation. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States mail, first-class, postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and covenanted that the Corporation is a non-profit industrial development corporation duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas, including the Act; that all acts, conditions 93 13 306796300.2/1001400940 and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid special obligations of the Corporation have been properly done, have happened and have been performed in regular and due time, form and manner as required by law; and that due provision has been made for the payment of the principal of and interest on the Bonds from the sources and in the manner provided in the Resolution. In case any provision in this Bond or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Resolution shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the Board of Directors of the Corporation has caused this Bond to be duly executed under the official seal of the Corporation. THE COLONY COMMUNITY DEVELOPMENT CORPORATION President, Board of Directors ATTEST: Secretary, Board of Directors (SEAL) (c) Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Bond only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) ) OF PUBLIC ACCOUNTS ) REGISTER NO. ) THE STATE OF TEXAS ) I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this . 94 14 306796300.2/1001400940 Comptroller of Public Accounts of the State of Texas (SEAL) (d) Form of Certificate of Paying Agent/Registrar to Appear on definitive Bonds. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered in the name of the Registered Owner shown above under the provisions of the within-mentioned Resolution and duly approved, or a Predecessor Bond hereof duly approved, by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying Agent/Registrar located in St. Paul, Minnesota, is the “Designated Payment/Transfer Office” for this Bond. U.S. Bank Trust Company, National Association, Houston, Texas, as Paying Agent/Registrar Registration date: By Authorized Signature (e) Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) _ _ (Social Security or other identifying number ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints _ attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Bond in every particular. 95 15 306796300.2/1001400940 (f) The Initial Bond shall be in the form set forth in paragraph (b) of this Section, except that the heading and first paragraph of the single fully registered Initial Bond shall be modified as follows: REGISTERED NO. T-1 REGISTERED $ UNITED STATES OF AMERICA STATE OF TEXAS THE COLONY COMMUNITY DEVELOPMENT CORPORATION SALES TAX REVENUE BOND SERIES 2026 Bond Date: September 15, 2026 Registered Owner: Principal Amount: DOLLARS The Colony Community Development Corporation (hereinafter referred to as the “Corporation”), a non-profit corporation organized and existing under the laws of the State of Texas, including Chapters 501, 502, and 505 of the Texas Local Government Code, as amended (the “Act”), with its principal office located in the City of The Colony, Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, solely from the revenues and sources pledged under the Resolution identified below, the Principal Amount stated above (or so much thereof as shall not have been paid upon prior redemption) on August 15 in each of the years and in principal amounts and bearing interest at the per annum rates in accordance with the following schedule: YEAR OF MATURITY PRINCIPAL INSTALLMENT INTEREST RATE $ % (Information to be inserted from Section 2 hereof) (or so much thereof as shall not have been paid upon prior redemption) on the Stated Maturity date specified above, and to pay interest on the unpaid principal amount hereof from the interest payment date next preceding the “Registration Date” of this Bond appearing below (unless this Bond bears a “Registration Date” as of an interest payment date, in which case it shall bear interest from such date, or unless the “Registration Date” of this Bond is prior to the initial interest payment date in which case it shall bear interest from the date of initial delivery of the Bonds) at the per annum rate of interest specified above; such interest being payable on August 15 and February 15 of each year, commencing February 15, 2027, until maturity or prior redemption. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the St. Paul, Minnesota office (the “Designated Payment/Transfer Office”) of U.S. Bank Trust Company, National Association, Houston, Texas (the “Paying Agent/Registrar”). Interest is payable to the registered owner of this Bond (or one or 96 16 306796300.2/1001400940 more Predecessor Bonds, as defined in the resolution hereinafter referenced) whose name appears on the “Security Register” maintained by the Paying Agent/Registrar at the close of business on the “Record Date”, which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent United States mail, first-class, postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located is authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when such banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. Section 10. Definitions. For all purposes of this Resolution and in particular for clarity with respect to the issuance of the Bonds herein authorized and the pledge and appropriation of revenues to the payment of the Bonds, the following definitions are provided: “Act” - Chapters 501, 502, and 505 of the Texas Local Government Code, as amended. “Additional Obligations” - Bonds, notes or other evidences of indebtedness which the Corporation reserves the right to issue or enter into, as the case may be, in the future in accordance with the terms and conditions provided in Section 18 hereof and which, together with the Bonds, are equally and ratably secured by a parity pledge of and claim on the Pledged Revenues under the terms of this Resolution and a Supplemental Resolution. “Average Annual Debt Service” - That amount which, at the time of computation, is derived by dividing the total amount of Debt Service to be paid over a period of years as the same is scheduled to become due and payable by the number of years taken into account in determining the total Debt Service. Capitalized interest payments provided from proceeds of borrowings of the Corporation shall be excluded in making the aforementioned computation. “Board” - The Board of Directors of the Corporation. “Bonds” - “The Colony Community Development Corporation Sales Tax Revenue Bonds, Series 2026” authorized by this Resolution. “City” - The City of The Colony, Texas. “Comptroller” – Comptroller of Public Accounts of the State of Texas. 97 17 306796300.2/1001400940 “Corporation” – The Colony Community Development Corporation, a non-profit corporation organized and existing under and pursuant to the laws of the State of Texas, including the Act and on behalf of the City of The Colony, Texas. “Debt Service” - As of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the Corporation as of such date or in such period for the payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear, or would have borne, interest at the maximum legal per annum rate applicable to such obligations, and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to maturity, the principal amounts thereof will be redeemed prior to maturity in accordance with the mandatory redemption provisions applicable thereto. “Depository” - A commercial bank or other qualified financial institution eligible and qualified to serve as the custodian of the Corporation’s monetary accounts and funds. “Fiscal Year” - The twelve month financial accounting period used by the Corporation ending September 30 in each year, or such other twelve consecutive month period established by the Corporation. “Government Obligations” - (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the Corporation are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the Corporation, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent, and (iv) any other then authorized securities or obligations under applicable State law that may be used to defease obligations such as the Bonds. “Gross Sales Tax Revenues” - All of the revenues or receipts due or owing to, or collected or received by or on behalf of the Corporation by the City or otherwise pursuant to the Act and the election held January 17, 1998 with respect to taxable sales and transactions that occur within the City but excluding those taxable sales and transactions that occur within the boundaries of the Zone, less any amounts due and owed to the Comptroller of Public Accounts of the State of Texas as charges for the collection of the Sales Tax or retention by said Comptroller for refunds and 98 18 306796300.2/1001400940 to redeem dishonored checks and drafts, to the extent such charges and retention are authorized or required by law. “Outstanding” - When used in this Resolution with respect to Bonds or Parity Obligations, as the case may be, means, as of the date of determination, all Bonds and Parity Obligations theretofore sold, issued and delivered by the Corporation, except: those Bonds or Parity Obligations canceled or delivered to the transfer agent or registrar for cancellation in connection with the exchange or transfer of such obligations; those Bonds or Parity Obligations paid or deemed to be paid in accordance with the provisions of Section 24 hereof or similar provisions of any Supplemental Resolution authorizing the issuance of Additional Obligations; or those Bonds or Parity Obligations that have been mutilated, destroyed, lost, or stolen and replacement obligations have been registered and delivered in lieu thereof. “Parity Obligations” - Collectively, the Bonds and Additional Obligations. “Pledged Revenues” - Collectively (i) Gross Sales Tax Revenues from time to time deposited or owing to the Pledged Revenue Fund and (ii) such other money, income, revenue, receipts or other property as may be specifically dedicated, pledged or otherwise encumbered in a Supplemental Resolution for the payment and security of Parity Obligations. “Supplemental Resolution” - Any resolution of the Board supplementing this Resolution for the purpose of authorizing and providing the terms and provisions of the Bonds or Additional Obligations, or supplementing or amending this Resolution for any other authorized purpose permitted in Section 18 or 25 hereof, including resolutions authorizing the issuance of Additional Obligations or pledging and encumbering income, revenues, receipts or property other than the Gross Sales Tax Revenues to the payment and security of the Parity Obligations. Section 11. Pledge. The Corporation hereby covenants and agrees that the Pledged Revenues, with the exception of those in excess of the amounts required for the payment and security of the Parity Obligations, are hereby irrevocably pledged to the payment and security of the Bonds and Additional Obligations, if issued, including the establishment and maintenance of the special funds created and established in this Resolution and any Supplemental Resolution, all as hereinafter provided. The Corporation hereby resolves the Parity Obligations shall constitute a lien on the Pledged Revenues in accordance with the terms of this Resolution and any Supplemental Resolution, which lien shall be valid and binding and fully perfected from and after the date of adoption of this Resolution without physical delivery or transfer or transfer of control of the Pledged Revenues, the filing of this Resolution or any other act; all as provided in Texas Government Code, Chapter 1208, as amended. Texas Government Code, Chapter 1208, as amended, applies to the issuance of the Bonds and the pledge of the Pledged Revenues granted by the Corporation under this Section 11, and such pledge is therefore valid, effective and perfected. If Texas law is amended at any time while the Bonds are Outstanding such that the pledge of the Pledged Revenues granted by 99 19 306796300.2/1001400940 the Corporation under this Section 11 is to be subject to the filing requirements of Texas Business and Commerce Code, Chapter 9, as amended, then in order to preserve to the registered owners of the Bonds the perfection of the security interest in said pledge, the Corporation agrees to take such measures as it determines are reasonable and necessary under Texas law to comply with the applicable provisions of Texas Business and Commerce Code, Chapter 9, as amended, and enable a filing to perfect the security interest in said pledge to occur. Section 12. Pledged Revenue Fund and Reserve Fund. The Corporation hereby agrees and covenants to establish and/or maintain a fund or account at a Depository for the deposit of the Pledged Revenues as received by the Corporation, which fund or account shall be known on the books and records of the Corporation as the “Pledged Revenue Fund”. All Pledged Revenues deposited to the credit of such Fund shall be accounted for separate and apart from all other revenues, receipts and income of the Corporation and, with respect to the Gross Sales Tax Revenues, the Corporation shall further account for such funds separate and apart from the other Pledged Revenues deposited to the credit of the Pledged Revenue Fund. All Pledged Revenues deposited to the credit of the Pledged Revenue Fund shall be appropriated and expended to the extent required by this Resolution and any Supplemental Resolution for the following uses and in the order of priority shown: First: To the payment of the amounts required to be deposited in the Bond Fund for the payment of Debt Service on the Parity Obligations as the same becomes due and payable; Second: To the payment of the amounts required to be deposited in the Reserve Fund to establish and maintain the Required Reserve in accordance with the provisions of this Resolution and any Supplemental Resolution; Third: To the payment of amounts required to be deposited in any other fund or account required by any Supplemental Resolution authorizing the issuance of Parity Obligations; and Fourth: To any fund or account held at any place or places, or to any payee, required by any other resolution of the Board which authorized the issuance of obligations or the creation of debt of the Corporation having a lien on the Pledged Revenues subordinate to the lien created herein on behalf of the Parity Obligations. Any Pledged Revenues remaining in the Pledged Revenue Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for any other lawful purpose now or hereafter permitted by applicable law. Section 13. Bond Fund. For the purpose of providing funds to pay the principal of and interest on Parity Obligations, the Corporation agrees and covenants to maintain a separate and special account or fund on the books and records of the Corporation known as the “The Colony Community Development Corporation Debt Service Fund” (the “Bond Fund”), and all monies deposited to the credit of such Bond Fund shall be held in a special banking fund or account maintained at a Depository of the Corporation. The Corporation covenants that there shall be deposited into the Bond Fund prior to each principal and interest payment date from the Pledged 100 20 306796300.2/1001400940 Revenues an amount equal to one hundred per centum (100%) of the interest on and the principal of the Bonds then falling due and payable, and such deposits to pay principal and accrued interest on the Bonds shall be made in substantially equal monthly installments on or before the 25th day of each month, beginning on or before the 25th day of the month next following the delivery of the Bonds to the initial purchasers. The required deposits to the Bond Fund for the payment of principal of and interest on the Bonds shall continue to be made as hereinabove provided until (i) the total amount on deposit in the Bond Fund and Reserve Fund is equal to the amount required to fully pay and discharge all Parity Obligations (principal and interest) then Outstanding or (ii) the Bonds are no longer Outstanding. Section 14. Reserve Fund. There shall be established and maintained “The Colony Community Development Corporation Series 2026 Sales Tax Reserve Fund” (the “Reserve Fund”) for the Bonds for the purposes of (i) finally retiring the last of the Bonds and (ii) paying principal of and interest on the Bonds in the event moneys on hand in the Bond Fund are insufficient for such purpose. The amount to be accumulated in the Reserve Fund shall be equal to not less than the maximum annual debt service requirement on all outstanding Bonds (the “Required Reserve”). Upon the initial delivery of the Bonds, the Required Reserve shall be fully funded from proceeds from the sale of the Bonds or from a surety bond or insurance policy purchased to provide the Required Reserve. If additional bonds are issued to refund a portion of the then outstanding Bonds and there is a reduction in the annual debt service of all the Bonds to be outstanding upon the issuance of the additional bonds, the Required Reserve shall be reduced to reflect the annual debt service requirements associated with such reduced requirement. When and so long as the cash and investments in the Reserve Fund and/or coverage afforded by any surety bond or insurance policy held for the account of the Reserve Fund total not less than the Required Reserve, no deposits need be made to the credit of the Reserve Fund; but, if and when the Reserve Fund at any time contains less than the Required Reserve (or so much thereof as shall then be required to be contained therein if additional bonds have been issued and the Corporation has elected to accumulate all or a portion of the Required Reserve with Pledged Revenues), the Corporation covenants and agrees to cause monthly deposits to be made to the Reserve Fund on or before the 1st day of each month (beginning the month next following the month the deficiency in the Required Reserve occurred by reason of a draw on the Reserve Fund or as a result of a reduction in the market value of investments held for the account of the Reserve Fund) from Pledged Revenues in an amount equal to either (1) 1/36th of the Required Reserve until the total Required Reserve then required to be maintained in said Fund has been fully restored or (2) the amounts to pay principal of and interest on Bonds held by an insurer, or evidenced by an instrument of assignment entitling an insurer to payment of principal of and interest on Bonds, as a result of payments or draws made on a surety bond or insurance policy held for the account of the Reserve Fund and such payments will result in the principal of and/or interest on such Bonds to be paid, as well as the restoration and replenishment of the surety bond or insurance policy coverage representing all or a portion of the Required Reserve. The Corporation further covenants and agrees that, subject only to the payments to be m ade to the Bond Fund, the Pledged Revenues shall be applied and appropriated and used to establish and maintain the Required Reserve and to cure any deficiency in such amounts as required by the terms of this Resolution and any other resolution pertaining to the issuance of additional bonds. 101 21 306796300.2/1001400940 During such time as the Reserve Fund contains the total Required Reserve, the Corporation may, at its option, withdraw any surplus above the Required Reserve and deposit such surplus in the Pledged Revenue Fund. [The Corporation has elected to purchase a reserve policy relating to the Bonds from in accordance with the provisions specified in Exhibit B hereto, which provisions are approved and incorporated herein for all purposes. In the event of any conflict or any inconsistency with other provisions of this Resolution, the provisions of Exhibit B shall control. The Corporation hereby authorizes the President or Vice President of the Board of Directors or any other officer of the Board of Directors or the Executive Director of the Corporation to enter into a surety reserve policy with .] Section 15. Deficiencies. If on any occasion there shall not be sufficient Pledged Revenues to make the required deposits into the Bond Fund or Reserve Fund, such deficiency shall be cured as soon as possible from the next available Pledged Revenues, or from any other sources available for such purpose. Section 16. Payment of Bonds. While any of the Bonds are Outstanding, the designated financial officer of the Corporation shall cause to be transferred to the Paying Agent/Registrar, from funds on deposit in the Bond Fund, and, if necessary, in the Reserve Fund, amounts sufficient to fully pay and discharge promptly as each installment of interest and principal of the Bonds accrues or matures; such transfer of funds to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date of payment for the Bonds. Section 17. Investments - Security of Funds. Money in any Fund required to be maintained pursuant to this Resolution may, at the option of the Corporation, be invested in obligations and in the manner prescribed by the Public Funds Investment Act (Texas Government Code, Chapter 2256, as amended), including investments held in book-entry form; provided that all such deposits and investments shall be made in such a manner that the money required to be expended from any Fund will be available at the proper time or times. Such investments shall be valued in terms of current market value within 45 days of the close of each Fiscal Year, and, with respect to investments held for the account of the Reserve Fund, within 45 days of the date of passage of each authorizing document of the Board pertaining to the issuance of Additional Obligations. All interest and income derived from deposits and investments in the Bond Fund immediately shall be credited to, and any losses debited to, the appropriate account of the Bond Fund. All interest and income derived from deposits in and investments of the Reserve Fund shall, subject to the limitations provided in Section 14 hereof, other funds or accounts shall be credited to and deposited in the Pledged Revenue Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Obligations. Money deposited to the credit of the Pledged Revenue Fund, Bond Fund and Reserve Fund, to the extent not invested and not otherwise insured by the Federal Deposit Insurance Corporation or similar agency, shall be secured by a pledge of direct obligations of the United States of America, or obligations unconditionally guaranteed by the United States of America. Section 18. Issuance of Additional Parity Obligations. Subject to the provisions hereinafter appearing as to conditions precedent which must be satisfied, the Corporation reserves the right to issue, from time to time as needed, Additional Obligations for any lawful 102 22 306796300.2/1001400940 purpose. Such Additional Obligations may be issued in such form and manner as the Corporation shall determine, provided, however, prior to issuing or incurring such Additional Obligations, the following conditions precedent for the authorization and issuance of the same are satisfied, to wit: (1) The officer or representative of the Corporation then having the primary responsibility for the financial affairs of the Corporation shall have executed a certificate stating that to the best of his or her knowledge and belief, the Corporation is not then in default as to any covenant, obligation or agreement contained in this Resolution or a Supplemental Resolution. (2) The Corporation has secured from a certified public accountant a certificate or opinion to the effect that, according to the books and records of the Corporation, the Gross Sales Tax Revenues received by the Corporation for either (i) the last completed Fiscal Year next preceding the adoption of the Supplemental Resolution authorizing the issuance of the proposed Additional Obligations or (ii) any twelve (12) consecutive months out of the previous fifteen (15) months next preceding the adoption of the Supplemental Resolution authorizing the Additional Obligations were equal to not less than 1.25 times the maximum annual Debt Service for all Parity Obligations then Outstanding after giving effect to the issuance of the Additional Obligations then being issued. (3) The Required Reserve to be accumulated and maintained in the Reserve Fund is increased to the extent required by Section 14. Section 19. Refunding Bonds. The Corporation reserves the right to issue refunding bonds to refund all or any part of the Parity Obligations (pursuant to any law then available) upon such terms and conditions as the Board may deem to be in the best interest of the Corporation, and if less than all such Parity Obligations then Outstanding are refunded, the conditions precedent prescribed (for the issuance of Additional Obligations) set forth in Section 18 hereof shall be satisfied, and shall give effect to the refunding. Section 20. Right to Create Subordinate Debt. Except as may be limited by a Supplemental Resolution, the Corporation shall have the right to issue or create any debt payable from or secured by a lien on all or any part of the Pledged Revenues for any lawful purpose without complying with the provisions of Section 18 or 19 hereof, provided the pledge and the lien securing such debt is subordinate to the pledge and lien established, made and created in Section 11 of this Resolution with respect to the Pledged Revenues to the payment and security of the Parity Obligations. Section 21. Confirmation and Levy of Sales Tax. (a) The Board hereby represents the City has duly complied with the provisions of the Act for the levy of the Gross Sales Tax at the rate voted at the election held by and within the City on January 17, 1998, and such Gross Sales Tax is being imposed within the corporate limits of the City and the receipts of such Gross Sales Tax are being remitted to the City by the Comptroller on a monthly basis. (b) While any Bonds are Outstanding, the Corporation covenants, agrees and warrants to take and pursue all action permissible to cause the Gross Sales Tax, at said rate or at a higher rate if legally permitted, to be levied and collected continuously, in the manner and to the maximum extent permitted by law, and to cause no reduction, abatement or exemption in the Gross Sales Tax or rate of tax below the rate stated, confirmed an d ordered in subsection (a) of this Section to be ordered or permitted while any Bonds shall remain Outstanding. 103 23 306796300.2/1001400940 (c) If hereafter authorized by law to apply, impose and levy the Gross Sales Tax on any taxable items or transactions that are not subject to the Gross Sales Tax on the date of the adoption hereof, to the extent it legally may do so, the Corporation agrees to use its best efforts to cause the City to take such action as may be required to subject such taxable items or transactions to the Gross Sales Tax. (d) The Corporation agrees to take and pursue all action legally permissible to cause the Gross Sales Tax to be collected and remitted and deposited as herein required and as required by the Act, at the earliest and most frequent times permitted by law. (e) The Corporation agrees to use its best efforts to cause the City to comply with the Act and shall cause the Gross Sales Tax Revenues to be deposited to the credit of the Pledged Revenue Fund in their entirety immediately upon receipt by the City. In the alternative and if legally authorized, the Corporation shall, by appropriate notice, direction, request or other legal method, use its good-faith efforts to cause the Comptroller to pay all Gross Sales Tax Revenues directly to the Corporation for deposit to the Pledged Revenue Fund. Section 22. Records and Accounts. The Corporation hereby covenants and agrees that while any of the Bonds are Outstanding, it will keep and maintain complete records and accounts in accordance with generally accepted accounting principles, and following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of certified public accountants. Each such audit, in addition to whatever other matters may be thought proper by the accountant, shall particularly include the following: (1) A statement in reasonable detail regarding the receipt and disbursement of the Pledged Revenues for such Fiscal Year; and (2) A balance sheet for the Corporation as of the end of such Fiscal Year. Such annual audit of the records and accounts of the Corporation shall be in the form of a report (and may be reflected in the audit of the City) and be accompanied by an opinion of the accountant to the effect that such examination was made in accordance with generally accepted auditing standards and contain a statement to the effect that in the course of making the examination necessary for the report and opinion, the accountant obtained no knowledge of any default of the Corporation on the Bonds or in the fulfillment of any of the terms, covenants or provisions of this Resolution, or under any other evidence of indebtedness, or of any event which, with notice or lapse of time, or both, would constitute a failure of the Corporation to comply with the provisions of this Resolution or if, in the opinion of the accountants, any such failure to comply with a covenant or agreement hereof, a statement as to the nature and status thereof shall be included. Copies of each annual audit report shall be furnished upon written request, to any Holders of any of said Bonds. The audits herein required shall be made within 180 days following the close of each Fiscal Year insofar as is possible. The Holders of any Bonds or any duly authorized agent or agents of such Holders shall have the right to inspect such records, accounts and data of the Corporation during regular business hours. 104 24 306796300.2/1001400940 Section 23. Representations as to Security for the Bonds. (a) The Corporation represents and warrants that, except for the Parity Obligations, the Pledged Revenues are and will be and remain free and clear of any pledge, lien, charge or encumbrance thereon or with respect thereto prior to, or of equal rank with, the pledge and lien created in or authorized by this Resolution except as expressly provided herein. (b) The Bonds and the provisions of this Resolution are and will be the valid and legally enforceable obligations of the Corporation in accordance with their terms and the terms of this Resolution, subject only to any applicable bankruptcy or insolvency laws or to any laws affecting creditors rights generally. (c) The Corporation shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Pledged Revenues and all the rights of the Holders against all claims and demands of all persons whomsoever. (d) The Corporation will take, and use its best efforts to cause the City to take, all steps reasonably necessary and appropriate to collect all delinquencies in the collection of the Gross Sales Tax to the fullest extent permitted by the Act. (e) The provisions, covenants, pledge and lien on and against the Pledged Revenues, as herein set forth, are established and shall be for the equal benefit, protection and security of the owners and holders of Parity Obligations without distinction as to priority and rights under this Resolution. (f) The Parity Obligations shall constitute special obligations of the Corporation, payable solely from, and equally and ratably secured by a parity pledge of and lien on, the Pledged Revenues, and not from any other revenues, properties or income of the Corporation. The Bonds may not be paid in whole or in part from any property taxes raised or to be raised by the City and shall not constitute debts or obligations of the State or of the City, and the Holders, shall never have the right to demand payment out of any funds raised or to be raised by any system of ad valorem taxation. Section 24. Satisfaction of Obligation of Corporation. If the Corporation shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Resolution, then the pledge of the Pledged Revenues under this Resolution and all other obligations of the Corporation to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Obligations shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Obligations have been certified by an independent accounting or consulting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the Bonds on the Stated Maturities thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor accepted to the Paying Agent/Registrar have been made) the redemption date thereof. 105 25 306796300.2/1001400940 Any moneys so deposited with the Paying Agent/Registrar, or an authorized escrow agent, and all income from Government Obligations held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section in excess of the amount required for the payment of the Bonds shall be remitted to the Corporation or deposited as directed by the Corporation. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall, upon the request of the Corporation, be remitted to the Corporation against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the Corporation shall be subject to any applicable unclaimed property laws of the State of Texas. The Corporation reserves the right, subject to satisfying the requirements of (i) and (ii) above, to substitute other Government Obligations for the Government Obligations originally deposited, to reinvest the uninvested moneys on deposit for such defeasance and to withdraw for the benefit of the Corporation moneys in excess of the amount required for such defeasance. Upon such deposit as described above, such Bonds shall no longer be regarded to be outstanding or unpaid. Provided, however, the Corporation has reserved the option, to be exercised at the time of the defeasance of the Bonds, to call for redemption, at an earlier date those Bonds which have been defeased to their maturity date, if the Corporation (i) in the proceedings providing for the firm banking and financial arrangements, expressly reserves the right to call the Bonds for redemption; (ii) gives notice of the reservation of that right to the Owners immediately following the making of the firm banking and financial arrangements; and (iii) directs that notice of the reservation be included in any redemption notices that it authorizes. Section 25. Resolution a Contract - Amendments. This Resolution shall constitute a contract with the Holders from time to time, be binding on the Corporation, and shall not be amended or repealed by the Corporation while any Bond remains Outstanding except as permitted in this Section. The Corporation, may, without the consent of or notice to any Holders, from time to time and at any time, amend this Resolution in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the Corporation may, with the written consent from the owners holding a majority in aggregate principal amount of the Parity Obligations then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Resolution; provided that, without the written consent of all Holders of Outstanding Bonds effected, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds or Parity Obligations, as the case may be, required to be held for consent to any such amendment, addition, or rescission. Section 26. Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the Corporation and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying 106 26 306796300.2/1001400940 Agent/Registrar of indemnification in an amount satisfactory to hold the Corporation and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Bond shall be borne by the Holder of the Bond mutilated, or destroyed, lost or stolen. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of the Corporation, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Resolution equally and ratably with all other Outstanding Bonds. Section 27. Notices to Holders - Waiver. Wherever this Resolution provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States mail, first-class, postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Resolution provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. Section 28. Cancellation. All Bonds surrendered for payment, redemption, transfer or exchange, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if surrendered to the Corporation, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The Corporation may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the Corporation may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the Corporation. Section 29. Sale of Bonds – Official Statement. Pursuant to a public sale for the Bonds, the bid submitted by (herein referred to as the "Purchaser") is declared to be the best bid received producing the lowest true interest cost rate to the Corporation; such bid is hereby accepted and incorporated herein by reference as a part of this Resolution for all purposes and the sale of the Bonds to said Purchaser at the price of par and accrued interest to the date of delivery, plus a premium of $ is hereby approved and confirmed. Delivery of the Bonds to the Purchaser shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. The terms of sale are hereby declared to be in the best interest of the Corporation. The use of the Preliminary Official Statement by the Purchaser in connection with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects and is hereby deemed "final" as of its date, within the meaning of Rule 15c2-12 of the United States Securities and Exchange Commission. The final Official Statement, which reflects the terms of sale, together with such changes approved by the President, Vice President or Secretary of the Board of Directors (one or more of said officials), shall be and is hereby in all respects 107 27 306796300.2/1001400940 approved and the Purchaser is hereby authorized to use and distribute said final Official Statement, dated September 15, 2026, in the reoffering, sale and delivery of the Bonds to the public. The President or Vice President and Secretary of the Board of Directors are further authorized and directed to execute and deliver for and on behalf of the Corporation copies of said Official Statement in final form as may be required by the Purchaser, and such final Official Statement in the form and content manually executed by said officials shall be deemed to be approved by the Board of Directors and constitute the Official Statement authorized for distribution and use by the Purchaser. Section 30. Proceeds of Sale. The proceeds of sale of the Bonds, excluding amounts to establish the Reserve Fund and pay costs of issuance including costs related to an insurance policy, shall be deposited in a construction fund maintained at a depository of the Corporation. Pending expenditure for the Project, such proceeds of sale may be invested in authorized investments in accordance with the provisions of Texas Government Code, Chapter 2256, as amended, including specifically guaranteed investment contracts permitted in Texas Government Code, Section 2256.015, et seq, and any investment earnings realized shall be expended for the Project or deposited in the Bond Fund. All surplus proceeds of sale of the Bonds, including investment earnings, remaining after completion of the Project shall be deposited to the credit of the Bond Fund. Section 31. Legal Opinion. The obligation of the Purchaser to accept delivery of the Bonds is subject to being furnished a final opinion of Norton Rose Fulbright US LLP, Dallas, Texas, Bond Counsel for the Corporation, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on or attached to the definitive Bonds or an executed counterpart thereof shall accompany the global Bonds deposited with DTC. The Corporation confirms the engagement of Norton Rose Fulbright US LLP as the Corporation’s Bond Counsel. Section 32. CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the Corporation nor attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. Section 33. Control and Custody of Bonds. The President and/or Vice President of the Board of Directors shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, and shall take and have charge and control of the Initial Bond pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Purchaser. Section 34. Benefits of Resolution. Nothing in this Resolution, expressed or implied, is intended or shall be construed to confer upon any person other than the Corporation, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Resolution or any provision hereof, this Resolution and all its provisions being intended to be and being for the sole and exclusive benefit of the Corporation, the Paying Agent/Registrar and the Holders. Section 35. Inconsistent Provisions. All orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the 108 28 306796300.2/1001400940 extent of such conflict and the provisions of this Resolution shall be and remain controlling as to the matters contained herein. Section 36. Governing Law. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. Section 37. Severability. If any provision of this Resolution or the application thereof to any circumstance shall be held to be invalid, the remainder of this Resolution and the application thereof to other circumstances shall nevertheless be valid, and the Board hereby declares that this Resolution would have been enacted without such invalid provision. Section 38. Construction of Terms. If appropriate in the context of this Resolution, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. Section 39. Incorporation of Findings and Determinations. The findings and determinations of the Board of Directors contained in the preamble hereof are hereby incorporated by reference and made a part of this Resolution for all purposes as if the same were restated in full in this Section. Section 40. Further Procedures. Any one or more of the President, Vice President or Secretary of the Board of Directors of the Corporation are hereby expressly authorized, empowered and directed from time to time and at any time to do and perform all such acts and things and to execute, acknowledge and deliver in the name and on behalf of the Corporation all agreements, instruments, certificates or other documents, whether mentioned herein or not, as may be necessary or desirable in order to carry out the terms and provisions of this Resolution and the issuance of the Bonds. In addition, prior to the initial delivery of the Bonds, the President, Vice President or Secretary of the Board of Directors, or Bond Counsel to the Corporation are each hereby authorized and directed to approve any changes or corrections to this Resolution or to any of the documents authorized and approved by this Resolution: (i) in order to cure any ambiguity, formal defect or omission in this Resolution or such other document; or (ii) as requested by the Attorney General of the State of Texas or his representative to obtain the approval of the Bonds by the Attorney General and if such officer or counsel determines that such changes are consistent with the intent and purpose of this Resolution, which determination shall be final. In the event that any officer of the Corporation whose signature shall appear on any document shall cease to be such officer before the delivery of such document, such signature nevertheless shall be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery. Section 41. Continuing Disclosure Undertaking. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: “MSRB” means the Municipal Securities Rulemaking Board. “Rule” means SEC Rule 15c2-12, as amended from time to time. “SEC” means the United States Securities and Exchange Commission. 109 29 306796300.2/1001400940 (b) Annual Reports. The Corporation shall provide annually to the MSRB within twelve months after the end of each fiscal year ending in or after 2026, financial information and operating data with respect to the Corporation of the general type included in the Official Statement under Tables 1 through 3 and the annual financial statements but only to the extent such information is customarily prepared by the Corporation and is publicly available (currently, the information that is customarily prepared by the Corporation and is publicly available consists of the Corporation’s audited annual financial statements). If the audit of such financial statements is not complete within twelve (12) months after any such fiscal year end, then the Corporation shall file unaudited financial statements by the required time and audited financial statements for the applicable fiscal year, when and if the audit report becomes available. Any financial statements to be provided shall be (i) prepared in accordance with the accounting principles described in Appendix B to the Official Statement, or such other accounting principles as the Corporation may be required to employ from time to time pursuant to state law or regulation, and in substantially the form included in the Official Statement, and (ii) audited, if the Corporation commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the Corporation changes its fiscal year, it will notify the MSRB of the change (and of the date of the new fiscal year end) prior to the next date by which the Corporation otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document available to the public on the MSRB’s Internet Web site or filed with the SEC. (c) Notice of Certain Events. The Corporation shall provide notice of any of the following events with respect to the Bonds to the MSRB in a timely manner and not more than 10 business days after occurrence of the event: 1. Principal and interest payment delinquencies; 2. Non-payment related defaults, if material; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB), or other material notices or determinations with respect to the tax status of the Bonds, or other material events affecting the tax status of the Bonds; 7. Modifications to rights of holders of the Bonds, if material; 8. Bond calls, if material, and tender offers; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the Bonds, if material; 110 30 306796300.2/1001400940 11. Rating changes; 12. Bankruptcy, insolvency, receivership, or similar event of the Corporation, which shall occur as described below; 13. The consummation of a merger, consolidation, or acquisition involving the Corporation or the sale of all or substantially all of its assets, other than in the ordinary course of business, the entry into of a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; 14. Appointment of a successor or additional trustee or the change of name of a trustee, if material; 15. Incurrence of a Financial Obligation of the Corporation, if material, or agreement to covenants, events of default, remedies, priority rights, or other similar terms of a Financial Obligation of the Corporation, any of which affect security holders, if material; and 16. Default, event of acceleration, termination event, modification of terms, or other similar events under the terms of a Financial Obligation of the Corporation, any of which reflect financial difficulties. For these purposes, (1) any event described in the immediately preceding subsection (c)12 is considered to occur when any of the following occur: the appointment of a receiver, fiscal agent, or similar officer for the Corporation in a proceeding under the United States Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the Corporation, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision and orders of a court or governmental authority, or the entry of an order confirming a plan of reorganization, arrangement, or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the Corporation, and (2) the Corporation intends the words used in the immediately preceding subsections (c)15 and (c)16 in this Section to have the meanings ascribed to them in SEC Release No. 34-83885, dated August 20, 2018. The Corporation shall notify the MSRB, in a timely manner, of any failure by the Corporation to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Filings with the MSRB. All financial information, operating data, financial statements, notices and other documents provided to the MSRB in accordance with this Section shall be provided in an electronic format prescribed by the MSRB and shall be accompanied by identifying information as prescribed by the MSRB. (e) Limitations, Disclaimers and Amendments. The Corporation shall be obligated to observe and perform the covenants specified in this Section for so long as, but only for so long as, the Corporation remains an “obligated person” with respect to the Bonds within the meaning of the Rule, except that the Corporation in any event will give the notice required by subsection (c) of this Section of any Bond calls and defeasance that cause the Corporation to be no longer such an “obligated person.” 111 31 306796300.2/1001400940 The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds; and, nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The Corporation undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section. Except as expressly provided within this Section, the Corporation does not undertake to provide any other information, whether or not it may be relevant or material to a complete presentation of the Corporation’s financial results, condition, or prospects; nor does the Corporation undertake to update any information provided in accordance with this Section or otherwise. Furthermore, the Corporation does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CORPORATION BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CORPORATION, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. No default by the Corporation in observing or performing its obligations under this Section shall constitute a breach of or default under this Resolution for purposes of any other provision of this Resolution. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the Corporation under federal and state securities laws. Notwithstanding anything herein to the contrary, the provisions of this Section may be amended by the Corporation from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Corporation, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bonds in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Resolution that authorizes such an amendment) of the Outstanding Bonds consent to such amendment or (b) a Person that is unaffiliated wit h the Corporation (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Bonds. The provisions of this Section may also be amended from time to time or repealed by the Corporation if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the Corporation’s right to do so would not prevent underwriters of the initial public offering of the Bonds from lawfully purchasing or selling Bonds in such offering. If the Corporation so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided pursuant to subsection (b) of this Section an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. 112 32 306796300.2/1001400940 Section 42. Covenants Regarding Tax-Exempt Status. (a) Definitions. When used in this Section, the following terms have the following meanings: “Closing Date” means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. “Code” means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. “Computation Date” has the meaning set forth in Section 1.148 1(b) of the Regulations. “Gross Proceeds” means any proceeds as defined in Section 1.148 1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148 1(c) of the Regulations, of the Bonds. “Investment” has the meaning set forth in Section 1.148-1(b) of the Regulations. “Nonpurpose Investment” means any investment property, as defined in Section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. “Rebate Amount” has the meaning set forth in Section 1.148 1(b) of the Regulations. “Regulations” means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. “Yield” of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The Corporation shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in Section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the Corporation receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the Corporation shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. The Bonds are being issued to finance the costs of the Project for and on behalf of the City, a political subdivision of the State of Texas and, in connection therewith, the City in its approval of the issuance of the Bonds has agreed that, except as permitted by Section 141 of the Code and the Regulations and rulings thereunder, the Project shall at all times prior to the last Stated Maturity of Bonds: 113 33 306796300.2/1001400940 (i) be exclusively owned, operated and maintained by the City, and prohibits the City from using or permitting the use of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any person or entity other than a state or local government, unless such use is solely as a member of the general public; and (ii) prohibits the City from directly or indirectly imposing or accepting any charge or other payment for use of Gross Proceeds of the Bonds or for any property t he acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by Section 141 of the Code and the Regulations and rulings thereunder, the Corporation shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be “loaned” to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under a take or pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Higher Yield. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the Corporation shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) Not Federally Guaranteed. Except to the extent permitted by Section 149(b) of the Code and the Regulations and rulings thereunder, the Corporation shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of Section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The Corporation shall timely file the information required by Section 149(e) of the Code with the Secretary of the Treasury on Form 8038 G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in Section 148(f) of the Code and the Regulations and rulings thereunder: (i) The Corporation and the City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last outstanding Bond is discharged. However, to the extent permitted by law, the Corporation may commingle Gross Proceeds of the Bonds with other money of the 114 34 306796300.2/1001400940 Corporation, provided that the Corporation separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (ii) Not less frequently than each Computation Date, the Corporation shall calculate the Rebate Amount in accordance with rules set forth in Section 148(f) of the Code and the Regulations and rulings thereunder. The Corporation shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation Date. (iii) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the Corporation shall pay to the United States out of the Bond Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the St ate of Texas, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(e)(2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (iv) The Corporation shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (i) Not to Divert Arbitrage Profits. Except to the extent permitted by Section 148 of the Code and the Regulations and rulings thereunder, the Corporation shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection (h) of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm’s length and had the Yield of the Bonds not been relevant to either party. (j) Elections. The Corporation hereby directs and authorizes the President, Vice President and Secretary of the Board of Directors, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. Section 43. Sales Tax Remittance Agreement. The Sales Tax Remittance Agreement, by and between the Corporation and the City substantially in the form attached hereto as Exhibit C and incorporated herein by reference as a part of this Resolution for all purposes, is hereby approved, and such Sales Tax Remittance Agreement, together with such changes or revisions 115 35 306796300.2/1001400940 as may be necessary to comply with Texas law or to carry out the intents and purposes of this Resolution, is hereby authorized to be executed by the President or Vice President and Secretary of the Board or other authorized officials of the Corporation for and on behalf of the Corporation and as the act and deed of this governing body; and such Sales Tax Remittance Ag reement as executed by such officials shall be deemed approved by the Board and constitute the Sales Tax Remittance Agreement herein approved. Section 44. Public Meeting. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by Texas Government Code, Chapter 551, as amended. Section 45. Effective Date. This Resolution shall be in force and effect from and after its passage on the date shown below. [remainder of page left blank intentionally] 116 S-1 306796300.2/1001400940 PASSED AND ADOPTED, this September 15, 2026. THE COLONY COMMUNITY DEVELOPMENT CORPORATION President, Board of Directors ATTEST: Secretary, Board of Directors 117 A-1 306796300.2/1001400940 EXHIBIT A PAYING AGENT/REGISTRAR AGREEMENT 118 EXHIBIT B PROVISIONS RELATING TO RESERVE POLICY PROVIDED BY . B-1 306796300.2/1001400940 119 C-1 306796300.2/1001400940 EXHIBIT C SALES TAX REMITTANCE AGREEMENT 120 B-1 306855350.3/1001400940 EXHIBIT B SALES TAX REMITTANCE AGREEMENT 121 306855318.21001400940 SALES TAX REMITTANCE AGREEMENT THIS SALES TAX REMITTANCE AGREEMENT, dated as of September 15, 2026 (the “Agreement”), is executed by and between the City of The Colony, Texas (the “City”) and The Colony Community Development Corporation (the “Corporation”) W I T N E S S E T H: WHEREAS, the Corporation has been duly created and organized pursuant to the provisions of the Development Corporation Act, Texas Local Government Code, Title 12, Subtitle C1, as amended (formerly known as the Development Corporation Act of 1979, Tex. Rev. Civ. Stat. Ann. Article 5190.6) (the “Act”), specifically with the corporation to possess the powers granted by Section 4B and now operates under Chapters 501, 502 and 505 of the Texas Local Government Code; and WHEREAS, the City, has been authorized by the voters of the City, pursuant to an election held January 17, 1998, to levy and collect a ½ of 1% local sales and use tax for purposes authorized by the Act for land, buildings, equipment, facilities, and improvements required or suitable for use for sports, athletic, entertainment, tourist convention, and public park purposes and events, including but not limited to community centers, libraries, and hike and bike trails, and the promotion or development of new or expanded business enterprises (the “Community Development Sales Tax”); and WHEREAS, under the Act and the provisions of the Texas Tax Code, disbursements of sales and use taxes are made to cities, such as the City, by the Comptroller of Public Accounts of Texas (the “Comptroller”); and WHEREAS, under authority of the Act, it is the intent of the Corporation to issue bonds for the purpose of financing projects, improvements and costs as permitted by the Act, and to secure such bonds with the Community Development Sales Tax collected by the City under authority of the Act; and WHEREAS, under the current policies and procedures established by the Comptroller, revenues from the general sales and use tax belonging to the City and the Community Development Sales Tax are collected jointly and remitted directly to the City in undivided interests and without allocations or notations of ownership as between the City and the Corporation; and WHEREAS, in order to enhance the marketability of the proposed bonds, it is appropriate and necessary that the City and the Corporation memorialize formal procedures by which the Community Development Sales Tax collected by the City is identified, allocated, and transferred to or for the benefit of the Corporation; NOW THEREFORE, in consideration of the covenants and agreements herein made, and subject to the conditions herein set forth, the City and the Corporation contract and agree as follows: SECTION 1: Pledged Revenue Fund. To secure bonds issued by the Corporation and pursuant to a resolution adopted by the Corporation on September 15, 2026 (the “Resolution”), the Corporation has established with a depository bank of the Corporation a fund designated in the Resolution as the “Pledged Revenue Fund”. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Resolution. 122 2 306855318.21001400940 SECTION 2: Collection of Sales Tax Receipts. The City hereby agrees that all remittances of commingled sales and use tax collections belonging to the City and the Corporation in undivided interests (the “Undivided Sales Tax Receipts”) shall be deposited as received, or transmitted by the Comptroller directly, to the depository account of the City held and maintained by the City at its official depository bank (the “City Depository Bank”) designated from time to time by the City, and the City shall request the Comptroller to transmit such funds by the earliest available and feasible means under the policies of the Comptroller in effect from time to time. SECTION 3: Certification and Transfer of Gross Sales Tax Revenues. Immediately upon receipt of the Undivided Sales Tax Receipts from the Comptroller, the City Manager or his or her designee, the Assistant City Manager or the Finance Director of the City shall determine the share of the Undivided Sales Tax Receipts belonging to the Corporation, in accordance with the Act. Such person shall in writing certify the determined amount to the Corporation. On or before the twenty-fifth (25th) day of each month, commencing on [ ], 2026, the City shall instruct the City Depository Bank to transfer to the Corporation, in immediately available funds for deposit in the Pledged Revenue Fund, the amount of Undivided Sales Tax Receipts so certified by such person constituting the Gross Sales Tax Revenues (as defined in the Resolution). The City Depository Bank shall not have any responsibility to verify or determine the accuracy of the amounts determined to be Gross Sales Tax Revenues by the City, and transferred by it from time to time according to this Section. SECTION 4: Collection of Community Development Sales Tax. The Executive Director of the Corporation and the City Manager of the City or their designees, shall take such actions as are required to cause the Community Development Sales Tax to be delivered and transferred by the Comptroller to the City for use by the Corporation by the fastest and most economically feasible means available. SECTION 5: Security for Funds. The City represents that all moneys on deposit in the City Depository Bank, including the Gross Sales Tax Revenues, are collateralized in the manner and with the collateral required by applicable law. SECTION 6: Change in Depository. The City reserves the right from time to time to change its official depository bank, and hereby agrees to give the Corporation thirty (30) days prior written notice of any such change in its official depository bank. SECTION 7: Use of Moneys by Corporation. The Corporation agrees to use the moneys on deposit in the Pledged Revenue Fund in a manner consistent with the terms and conditions of the Resolution and the Act. SECTION 8: Depository Responsibilities. The President, Vice-President and Secretary of the Board of Directors of the Corporation, the Executive Director of the Corporation and the City Manager and Assistant City Manager of the City shall develop procedures to ensure that the City Depository Bank shall be obligated to perform the duties detailed in this Agreement, including the incorporation of this Agreement by the City into and as part of the bidding procedures by which the City designates and selects its City Depository Bank or banks from time to time. SECTION 9: Effect of Agreement. The City and the Corporation acknowledge that the Bonds issued under the Resolution will be purchased in reliance upon timely and diligent compliance with the terms and requirements of this Agreement. 123 3 306855318.21001400940 SECTION 10: Modifications. This Agreement shall not be changed orally, and no executory agreement shall be effective to waive, change, modify or discharge this Agreement in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought and to the extent that the provisions of Sections 2, 3 or 10 hereof are subject to any such proposed waiver, change, modification or discharge, the prior consent of the owners of a majority in aggregate principal amount of all Parity Obligations then Outstanding (as defined in the Resolution) must be obtained; provided, however, that, Sections 2, 3, and 10 may be waived, changed or modified without the consent or approval of any holder of the Parity Obligations, for any of the following purposes (i) to make changes necessary to conform to changes in the Resolution, applicable law or the practices employed by the Comptroller with respect to remitting proceeds of the Community Development Sales Tax, (ii) to cure any formal defect, omission or ambiguity herein, (iii) to add to the covenants and agreements of the City any other covenants and agreements which are not contrary to or inconsistent with the Resolution, (iv) to satisfy any requirements imposed by a rating agency if necessary to maintain the then current rating on any Parity Obligations, (v) to specify further the duties and responsibilities of, and to define further the relationship among the City, the City Depository Bank and the Corporation, and (vi) to make any other changes which will not materially adversely affect the rights of any owners of the Parity Obligations Outstanding under the Resolution. SECTION 11: Entire Agreement. This Agreement contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior agreements and understandings between the parties pertaining to such subject matter. SECTION 12: Counterparts. This Agreement may be executed in several counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. SECTION 13: Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. SECTION 14: Applicable Law. This Agreement shall in all respects be governed by, and construed in accordance with, the substantive federal laws of the United States and the laws of the State of Texas. SECTION 15: Captions. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. [The remainder of this page intentionally left blank.] 124 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed in multiple counterparts, each of which shall be considered an original for all purposes, as of the day and year first set out above. CITY OF THE COLONY, TEXAS By Mayor ATTEST: City Secretary (SEAL) THE COLONY COMMUNITY DEVELOPMENT CORPORATION By President, Board of Directors ATTEST: Secretary, Board of Directors (SEAL) [signature page of Sales Tax Remittance Agreement] 125 Agenda Item No: 5.2 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Conduct a public hearing, discuss and consider approving an ordinance regarding amendments to Planned Development 14 (Lone Star Car Wash), amending Section 3.2.a to include Auto parts and accessory sales (inside only) on Lot 1R2R (PT), Block 1 Spotless Addition by Specific Use Permit. The subject site contains approximately 0.44 acres and is located approximately 460 feet south of the southwest intersection of Main Street and Ridgepointe Drive within Planned Development 14 and the Gateway Overlay District. (Williams) Background: Please see the attached staff report, drawings, maps and illustrations for detailed land use Attachments: PDA26-0002 -The Colony Audio & Tint - CC Staff Report.doc Ord. 2026-xxxx Planned Development 14 Lone Star Car Wash.docx Ordinance Exhibit A.pdf 126 CITY COUNCIL REPORT AGENDA DATE: September 15, 2026 DEPARTMENT: Planning and Development Department SUBJECT: PDA26-0002 - Planned Development 14 (Lone Star Car Wash) – Amendment to Add a Retail Use by Specific Use Permit on Lot 1R2R(PT), Block 1 Spotless Addition Conduct a public hearing, discuss and consider an ordinance regarding amendments to Planned Development 14 (Lone Star Car Wash), amending Section 3.2.a to include Auto parts and accessory sales (inside only) on Lot 1R2R (PT), Block 1 Spotless Addition by Specific Use Permit. The subject site contains approximately .44 acres and is located approximately 460 feet south of the southwest of the intersection of Main Street and Ridgepointe Drive within Planned Development 14 and the Gateway Overlay District. OWNER/APPLICANT Owner: Colony Assets Development LLC Plano, TX Applicant: Mack Awad Dallas, TX Arabisc Contractors Company EXISTING CONDITION OF PROPERTY Planned Development 14 is an approximately 6.94-acre zoning district located west of Main Street and approximately 460 feet south of Ridgepointe Drive. The applicant requests amending the allowed uses on a .44-acre lot within the Planned Development to permit the consideration of a specific use permit fo r auto parts and accessories sales (inside only). T The request is the development step to allow a Specific Use Permit to consider allowance of an auto tint business within lot 1R2Rof Planned Development 14. BACKGROUND The applicant is a partner of Empire Sound & Security with operational experience in the industry since 2008. Mr. Awad initiated this request after seeking a certificate of occupancy for Auto Parts and Accessory Sales (Inside Only) at the subject suite. The proposed use is not currently included among the permitted uses for Lot 1R2R(PT) within PD-14. If the PD amendment is approved, the applicant intends to submit a separate SUP request for the proposed indoor auto tint and accessory business. PROPOSED REQUEST The requested amendment would revise Exhibit B, Development Regulations, Section 3.2.a, adding Auto Parts and Accessory Sales (Inside Only)” as a use permitted by SUP on Lot 1R2R(PT), Block 1, Spotless Addition. The requested amendment would revise Exhibit B, Development Regulations , Section 3.2.a, adding Auto Parts and Accessory Sales (Inside Only)” as a use permitted by SUP on Lot 1R2R(PT), Block 1, Spotless Addition. 127 PRIOR ACTION On August 25th, 2026 The Colony's Planning and Zoning Commission approved [4 -0] the request of the Planned Development Amendment to revise Exhibit B, Development Regulations, Section 3.2.a, adding Auto Parts and Accessory Sales (Inside Only)” as a use permitted by SUP on Lot 1R2R(PT), Block 1, Spotless Addition. LAND USE ANALYSIS The subject site is located along Main Street in an established commercial area. Within the subject lot, an oil-change business fronts Main Street, and the proposed tenant space is located (west) behind the oil change business. Specifically, the proposed use is intended to occupy suite 200, which was previously occupied by Sherry Stephanie Dance & Music Company. Existing uses within and surrounding the PD include a car wash, two oil-change businesses, restaurants, and retail services. The City’s Comprehensive Plan identifies this area as Regional Mixed-Use Destinations, characterized as follows: “Provides regional employment and shopping centers serving both residents of The Colony and a wider regional audience. They may include a rich mix of business, commercial, office, retail, entertainment, production, storage, hotel/hospitality, and higher-density residential uses.” The Comprehensive Plan further states that these areas are expected to contribute significantly to the City’s tax base, employment base, economic vitality, and com munity quality of life. Auto Parts and Accessory Sales (Inside Only) uses are generally consistent with the commercial and service-oriented character of the area. The proposed use would be entirely indoors and would be located within an existing tenant suite. The SUP process is appropriate because it allows the City to evaluate the specific operational characteristics of the business, including hours of operation, parking, signage, outdoor activity, vehicle storage, installation work, noise, and any potenti al effects associated with a concentration of automobile-oriented uses in the PD. NOTIFICATION The Zoning Ordinance requires newspaper notification at least fifteen (15) days prior to the Planning and Zoning Commission meeting for text amendments. Notice of this public hearing was published in The Dallas Morning News, and property owners within 200 feet of the subject property received mailed notice. As of the printing of this packet, no comments in support of or opposition to the Planned Development Amendment had been received. RECOMMENDATION The Development Review Committee recommends approval of the requested amendment to Planned Development District No. 14 (Lone Star Car Wash) to allow Auto Parts and Accessory Sales (Inside Only) on Lot 1R2R(PT), Block 1, Spotless Addition, by Specific Use Permit. ATTACHMENTS 1. Location Map 2. Narrative 128 3. Auto parts and accessory sales (inside only) Development Intent 129 Page 1 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2026 - ___ LONE STAR CAR WASH PLANNED DEVELOPMENT NO. 14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING PLANNED DEVELOPMENT 14 (PD-14) LONE STAR CAR WASH BY ADDING “AUTO PARTS AND ACCESSORY SALES (INSIDE ONLY)” TO SECTION 3.2.A OF SAID ORDINANCE FOR LOT 1R2R(PT) OF THE SPOTLESS ADDITION, AN ADDITION TO THE CITY OF THE COLONY, DENTON COUNTY, TEXAS; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY OF A FINE NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH AND EVERY OFFENSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council approved the Planned Development zoning for PD-14 Lone Star Car Wash on May 5, 1997 by adopting Ordinance No. 97-973, and WHEREAS, the applicant has made a request to amend PD-14 Lone Star Car Wash to add “Auto parts and accessory sales (inside only)” by Specific Use Permit on Lot 1R2R(PT) Spotless Additon a .44-acre tract of land, and. WHEREAS, after discussion and consideration, the City Council has determined that the proposed land use “Auto parts and accessory sales (inside only)” should be approved. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That PD-14 Lone Star Car Wash, Ordinance No. 97-973 of the City of The Colony, Texas, is hereby amended for Lot 1R2R(PT) of the Spotless Addition, an addition to the City of The Colony, Denton County, Texas, by adding “Auto parts and accessory sales (inside only)” use to Section 3.2.A. SECTION 2. That should any sentence, paragraph, subdivision, clause, phrase, or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole, or any part or provision thereof other than the part so decided to be unconstitutional, illegal, or invalid, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 3. That the Zoning Ordinance of the City of The Colony, Texas, as amended, and all ordinances establishing and amended PD 14 (PD-14) Lone Star Car Wash, shall remain in full force and effect, save and except as amended by this Ordinance. SECTION 4. That any person, firm, or corporation violating any of the provisions or terms of this Ordinance shall be subject to the same penalty as provided for in the Code of 130 Page 2 Ordinances of the City of The Colony, Texas, as heretofore amended, and upon conviction shall be punished by a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense; and each and every day such violation shall continue shall be deemed to constitute a separate offense. SECTION 5. That this Ordinance shall take effect immediatel y from and after its passage and the publication of its caption, as the law and charter in such cases provide. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15TH DAY OF SEPTEMBER 2026. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 131 132 1 SITE PLAN4181 MAIN ST, THE COLONY, TX 75056 ADDRESS:COMMERCIALREMODELINGPROJECTDESC.:PLAN:DATE:06/04/2026SCALE:PAGE NUMBER:1/4" = 1'-0"SPA26-00008 -THE COLONY AUDIO- TINT rcplans@outlook.com214-859-4267AÑO 2009-2010-> CADJCRUZ2005@YAHOO.COM.MXN S W NWSWNESEE SITE PLAN SCALE 1" = 10'1" = 10'01 1" = 10'133 PROPOSEDFLOOR &EGRESS PLAN4181 MAIN ST, THE COLONY, TX 75056 ADDRESS:COMMERCIALREMODELINGPROJECTDESC.:PLAN:DATE:06/04/2026SCALE:PAGE NUMBER:1/4" = 1'-0"SPA26-00008 -THE COLONY AUDIO- TINT rcplans@outlook.com214-859-4267PROPOSED FLOOR PLAN SCALE 1/4" = 1'-0" 03 EGRESS PLAN SCALE 1/4" = 1'-0" 134 SHERRY STEPHANIE DANCE & MUSIC CO.ELEVATION PLAN4181 MAIN ST, THE COLONY, TX 75056 ADDRESS:COMMERCIALREMODELINGPROJECTDESC.:PLAN:DATE:06/04/2026SCALE:PAGE NUMBER:1/4" = 1'-0"SPA26-00008 -THE COLONY AUDIO- TINT rcplans@outlook.com214-859-426704 EXISTING NORTH ELEVATION SCALE 1/4" = 1'-0" EXISTING SOUTH ELEVATION SCALE 1/4" = 1'-0" 135 4181 MAIN ST, THE COLONY, TX 75056 ADDRESS:COMMERCIALREMODELINGPROJECTDESC.:PLAN:DATE:06/04/2026SCALE:PAGE NUMBER:1/4" = 1'-0"SPA26-00008 -THE COLONY AUDIO- TINT rcplans@outlook.com214-859-4267ELEVATION PLAN05 EXISTING WEST ELEVATION SCALE 1/4" = 1'-0" PROPOSED WEST ELEVATION SCALE 1/4" = 1'-0" 136 The Request is to amend Planned Development to allow the specific use of Auto Accessories – Indoor (Use 97-973) on the property. This request is only to allow this specific use and does not request all General Retail uses. The business will provide indoor installation of window tint, paint protection film (PPF), automotive audio, remote start systems, lighting upgrades, and other vehicle accessories. All work will be performed inside the existing building. Compatibility with the Surrounding Area The property is located along Main Street in an established commercial area with retail, restaurant, office, and automotive businesses. Midas Automotive operates within the same building, a car wash is located directly behind the property , and several other automotive businesses are located along Main Street. The proposed Auto Accessories – Indoor use is compatible with these surrounding businesses because all work is performed indoors, with no outdoor storage, body work, painting, or mechanical repair. • The Colony Audio & Tint is a professional automotive accessory sales and installation business specializing in enhancing the appearance, comfort, convenience, and security of passenger vehicles. The business will operate as the third location under the ownership of Empire Sound & Security, an established North Texas company that has been serving customers since 2008. Empire Sound & Security opened its first location in Dallas in 2008 and later expanded to a second location in McKinney. Due to continued growth and customer demand, the company is now expanding into The Colony under the new business name The Colony Audio & Tint to better serve residents of The Colony and the surrounding communities. The business will offer the sale and professional installation of a wide variety of automotive accessories, including: • Automotive window tint • Paint Protection Film (PPF) 137 • Car audio systems • Speakers and subwoofers • Amplifiers • Apple CarPlay and Android Auto integration • Backup cameras • Dash cameras • Remote start systems • Vehicle security and alarm systems • • GPS navigation systems • LED lighting upgrades • Other automotive electronics and accessories The business is an authorized dealer and installer for many of the industry’s leading manufacturers, including JL Audio, Garmin, Kicker, Focal, Sony, JVC, Kenwood, and other nationally recognized brands. All installation work will be performed entirely inside the building. No heavy automotive repair, engine repair, body work, or automotive painting will be conducted at this location. Hours of Operation Monday – Saturday: 9:00 AM – 6:00 PM Sunday: Closed The business is expected to employ approximately 3 to 5 employees initially, with additional hiring as the business continues to grow. Property Improvements The proposed project involves only minor modifications to the existing commercial building. The only exterior building modification will be the installation of one overhead roll-up garage door to provide safe indoor access for customer vehicles during installation services. 138 Interior improvements include remodeling the existing floor plan to create a functional showroom and installation area. No expansion of the building footprint is proposed. Outdoor Storage No vehicles, equipment, inventory, or materials will be stored outside the building. • Customer vehicles will only be parked in designated parking spaces while waiting for scheduled service or customer pickup. There will be no long-term outdoor vehicle storage. Lighting and Signage The property already has existing exterior lighting, and no additional site lighting is proposed. The applicant proposes installing LED illuminated channel letter signs on the front and rear elevations of the building. If permitted by the City, one monument or pylon sign facing the street may also be installed in accordance with all applicable City sign regulations. Compatibility with Surrounding Businesses The applicant has personally met with the neighboring businesses to discuss the proposed use. The response was overwhelmingly positive, and neighboring business owners expressed enthusiasm about having a professional automotive audio and window tint business locate next to their businesses. The surrounding area already contains a variety of automotive and commercial uses, making the proposed business a compatible addition to the existing commercial corridor. 139 Because all installation work is performed indoors, the business is expected to have minimal impacts on surrounding properties with respect to noise, traffic, lighting, and overall appearance. Parking and Traffic The business primarily operates by appointment, allowing customer visits to be scheduled throughout the day and minimizing traffic congestion. The existing parking on-site is adequate to accommodate employees, customers, and vehicles being serviced. The proposed use is not expected to generate traffic beyond what is typical for commercial businesses located along Main Street. • Community Benefit The Colony Audio & Tint represents the expansion of an established North Texas business with nearly two decades of experience serving the community. The project will bring additional investment to an existing commercial property while creating new employment opportunities and providing residents with convenient access to high-quality automotive accessory sales and installation services. The proposed use will enhance the commercial corridor, generate additional sales tax revenue for the City, and provide a valuable service without creating adverse impacts on neighboring properties. Noise Control and Operational Practices The Colony Audio & Tint recognizes the importance of operating in a manner that is respectful of neighboring businesses and nearby residential properties. The business is committed to maintaining a professional environment and complying with all applicable City of The Colony noise and nuisance ordinances. 140 Although the business sells and installs automotive audio systems, remote start systems, security systems, and related electronics, demonstrations of these products will be conducted responsibly and only when necessary to verify proper installation or to allow customers to evaluate equipment prior to delivery. Whenever practical, audio demonstrations and system testing will be performed inside the building with the overhead garage door closed. To further minimize sound transmission, the new overhead garage door will be equipped with sound-insulating material designed to reduce noise escaping the building during testing and demonstrations. Any demonstrations conducted outside the building will be limited to brief operational verification only, will occur during normal business hours, and will be maintained at reasonable volume levels. Excessive volume, prolonged demonstrations, or unnecessary operation of vehicle audio systems will not be permitted. The business will not conduct outdoor advertising events, promotional demonstrations, competitions, or amplified audio displays intended to attract customers. Employees will be trained to ensure all demonstrations are performed professionally and with consideration for neighboring businesses and nearby residences. The Colony Audio & Tint is committed to being a responsible member of the community and maintaining a positive relationship with neighboring property owners through proactive operational practices and responsible business operations. 141 Agenda Item No: 5.3 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: Planning Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Discuss and consider approving an ordinance regarding the Site Plan application of "Amarco HQ," a 17,679 sq ft office building. The subject site contains approximately 1.371 acres (59,736 sq ft) and is located at Lot 1, Block A, Amarco Addition within the Business Park (BP) Zoning District and the Gateway Overlay District. (Williams) Background: Please see the attached staff report, drawings maps and illustrations for detailed land use, site layout and staff recommendations. Attachments: SP26-0002 - Amarco HQ - CC Staff Report.doc Ord. 2026-xxxx Amarco HQ Site Plan.docx _AMARCO HQ - Exhibit A (CC).pdf 142 1 CITY COUNCIL REPORT AGENDA DATE: September 15, 2026 DEPARTMENT: Planning and Development Department SUBJECT: SP26-0002 – Amarco HQ – Site Plan Discuss and consider an ordinance regarding the Site Plan application of “Amarco HQ,” a 17,679 sq ft office building. The subject site contains approximately 1.371 acres (59,736 sq ft) and is located at Lot 1, Block A, Amarco Addition within the Business Park (BP) Zoning District and the Gateway Overlay District. OWNER/APPLICANT Owner: CP 121 HQ, LLC Dallas, TX Applicant: Riley Cox Arlington, TX Wier & Associates, Inc. EXISTING CONDITION OF PROPERTY The subject site is currently undeveloped. PROPOSED DEVELOPMENT The proposed development contains a three-story, 17,679 Sq Ft (Gross Floor Area) office building known as “Amarco HQ.” The subject site is approximately 1.371 acres (59,736 Sq ft) lot, located north of SH-121 and east of Standridge. ADJACENT ZONING AND LAND USE North - Business Park (BP) – Medical office building South - Business Park (BP) – Commercial mixed East- Business Park (BP)- RifleGear West- Business Park (BP)- ENCO plumbing building DEVELOPMENT REVIEW COMMITTEE (DRC) REVIEW The Development Review Committee (DRC) finds that the Site Plan meets the requirements of The Colony Code of Ordinances, Appendix A, Zoning Ordinance and other applicable ordinances as outlined in the Staff Report and recommends approval. STAFF ANALYSIS 143 2 Land Use Analysis The proposed development, known as “Amarco HQ,” will consist of an approximately 17,679-square-foot, three-story office building. The facility will serve as the campus headquarters for Amarco, a real estate business, and will include tenant office space for MW Law. Office uses are permitted by right within the Business Park (BP) Zoning District. Elevations The elevation plans reflect a modern aesthetic, consisting primarily of masonry including stone cladding and stucco. The south elevation features a storefront fenestration presenting a contemporary office aesthetic facing SH-121. A bank of covered parking is proposed along the west side of the building. Its design incorporates st one cladding consistent with the primary structure. Overall, the architectural design is consistent with surrounding development patterns in the office park and is generally compatible with the standards and intent of the Business Park (BP) Zoning District. Circulation and Parking The site plan reflects a circular traffic flow, with the parking field arranged along the sides and rear of the property. The parking field reflects 71 standard parking spaces and four ADA-accessible spaces; 71 parking spaces are required for the proposed uses and is congruent with the required parking ratio, subject to the ordinance’s rounding provisions and DRC review allowance. Primary vehicular access is provided through a shared driveway connection along SH - 121. The site also provides cross access to the west, connecting it to Standridge Drive. Landscaping The landscape plan incorporates a variety of trees, shrubs, and groundcover plantings to satisfy the Gateway landscape requirements. The development provides a surplus of open space and includes a 31-foot planted buffer along the south property line, exceeding the required five-foot buffer. The plans demonstrate compliance with all required landscape points and public amenity standards applicable to the Gateway district. Internal landscaping requirements are met through the provision of parking lot trees and landscaping rock. All proposed landscaping will be fully irrigated in accordance with City standards. RECOMMENDATION and PRIOR ACTION On August 25, 2026 The Colony's Planning and Zoning Commission approved [4-0] the request for the Site Plan application of “Amarco HQ,” a 17,679 sq ft office building. The subject site contains approximately 1.371 acres (59,736 sq ft) and is located at Lot 1, Block A, Amarco Addition within the Business Park (BP) Zoning District and the Gateway Overlay District. 144 3 The Development Review Committee (DRC) finds that the Site Plan meets the requirements of The Colony Code of Ordinances, Appendix A, Zoning Ordinance and other applicable ordinances as outlined in the Staff Report and recommends approval. 145 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2026 - _______ SITE PLAN – AMARCO HQ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING A SITE PLAN APPLICATION FOR AMARCO HQ AN APPOXIMATELY 17,679 SQUARE FOOT(GFA) OFFICE DEVELOPMENT ON APPROXIMATELY 1.371 ACRES, LOCATED ON LOT 1, BLOCK A, AMARCO ADDITION, AN ADDITION TO THE CITY OF THE COLONY, DENTON COUNTY, TEXAS, AND WITHIN THE BUSINESS PARK (BP) ZONING DISTRICT AND GATEWAY OVERLAY DISTRICT; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Planning and Zoning Commission and the City Council of the City of The Colony, Texas, in compliance with the laws of the State of Texas, and the Code of Ordinances of the City of The Colony, Texas, have given requisite notices and consideration of the site plan application and related plans, and the City Council of the City of The Colony, Texas, is of the opinion and finds that Site Plan Application No. SP26-0002 for “Amarco HQ” an approximately 17,679 square foot (GFA) office development on approximately 1.371-acres, located on Lot 1, Block A of the Amarco Addition, and addition to the City of The Colony, Denton County, Texas, and within the Business Park (BP) Zoning District and Gateway Overlay District is hereby approved. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. That the findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That the City Council of the City of The Colony, Texas, does hereby approve the Site Plan, Landscape Plan, building elevations and photometric plan applicable to the subject area, copies of which are attached hereto as Exhibit A of this Ordinance. SECTION 3. That it is hereby declared to be the intention of the City Council of the City of The Colony, Texas, that the phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. SECTION 4. That any provision of any prior ordinance of the City whether codified or uncodified, which are in conflict with any provision of this Ordinance, are hereby repealed to the 146 extent of the conflict, but all other provisions of the ordinances of the City whether codified or uncodified, which are not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 5. That this Ordinance shall become effective immediately upon its passage. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THIS 15TH DAY OF SEPTEMBER 2026. ______________________________ Richard Boyer, Mayor City of The Colony, Texas ATTEST: ___________________________________ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: ___________________________________ Jeffrey L. Moore, City Attorney 147 Exhibit A 148 SH 1213700 3901 3716 3905 3909 3712 4001 BP PD BP PD This map was generated by GIS data provided by The Colony GIS Department. The City of The Colony does not guarantee the correctness or accuracy of any features on this map. These digital products are for llustration purposes only and are not suitable for site-specific decision making. ± SUBJECT AREA SP26-0002 Project No: SP26-0002 - AMARCO HQ Project Number Business Park 149 AMAR Companies, Inc. 5001 Lyndon B Johnson Fwy #830 Dallas, TX 75244 (469) 310-1450 www.amarco.com operations@amarco.com AMARCO Headquarters – Class A Office Development Site Plan Project Narrative City of The Colony, Texas Development Intent and Proposed Uses The applicant is requesting Site Plan approval for a Class A office building designed to serve as the corporate headquarters for AMARCO and MW Law. The development will provide Class A professional office space, creating an active and vibrant environment that supports business operations and community engagement. The proposed building will contain the following uses: Office – Corporate Headquarters (AMARCO). AMARCO is a diversified investment firm focused on commercial real estate and direct investments in operating businesses across multiple industries. The proposed headquarters will house the firm's executive leadership, investment professionals, and portfolio operations teams. The company pursues strategic acquisitions where it can actively influence performance through operational involvement, disciplined capital deployment, and value-creation initiatives. Office – Law Firm Headquarters (MW Law). MW Law is a nationally active boutique law firm dedicated to real estate private equity and commercial transactions. The firm provides comprehensive legal services covering acquisitions and dispositions, financing, fund formation, securities compliance, and corporate structuring. The firm's headquarters will accommodate attorneys and support staff in a collaborative, client- focused environment designed to facilitate growth and high-touch service. Zoning Consistency and Compliance with Section 10 – Use of Land and Buildings All proposed uses within the development are consistent with the applicable zoning district and the regulations governing use of land and buildings set forth in Section 10 of the City of The Colony Zoning Ordinance. Specifically, the applicant has reviewed the Section 10-100 Schedule of Uses and confirms that each proposed land use—professional office—is a permitted use within the applicable zoning district. The proposed land use selections have been made to pursue uses that are expressly authorized under Section 10-100, and no use is proposed that would require a Specific Use Permit (SUP) unless otherwise noted and applied for separately. The applicant declares that the project, as submitted, complies with all applicable use regulations, supplemental use standards, and definitions set forth in Sections 10-100 through 10-300 of the Zoning Ordinance. 150 AMAR Companies, Inc. 5001 Lyndon B Johnson Fwy #830 Dallas, TX 75244 (469) 310-1450 www.amarco.com operations@amarco.com Compliance with the Gateway Overlay District (Section 10A) The subject property is located within the City of The Colony's Gateway Overlay District. The applicant acknowledges that the Gateway Overlay District Regulations set forth in Section 10A of the Zoning Ordinance supersede the underlying zoning district standards where applicable, and that the Gateway prevails where the underlying zoning is silent. The site plan, building design, architectural materials, landscaping, signage, lighting, and overall site layout have been prepared in consideration of and in compliance with the design standards and development requirements of the Gateway Overlay District. The development has been designed to meet or exceed the Gateway Overlay District's standards for building articulation, façade treatment, pedestrian connectivity, screening, and site aesthetics in order to contribute to the high-quality built environment envisioned by the City for properties within this overlay. Compliance with the Zoning Ordinance The proposed development has been designed in full compliance with the City of The Colony Zoning Ordinance, including but not limited to the applicable standards for area regulations (Section 11), height regulations (Section 12), vehicle parking and on-site traffic regulations (Section 13), off-street loading regulations (Section 14), sign regulations (Section 15), creation of building site (Section 16), and site plan approvals and special development standards (Section 17). All setbacks, lot coverage, building height, parking counts, drive aisle widths, and loading provisions have been designed to meet the requirements of the Zoning Ordinance. Consistency with the Comprehensive Plan The proposed development is consistent with the goals and objectives of the City of The Colony Comprehensive Plan. The project supports the Comprehensive Plan's vision for strengthening the city's commercial district by attracting professional employment, encouraging daytime and evening activity, and delivering a high-quality office development that contributes to the long-term economic vitality of the community. The corporate office headquarters aligns with the Comprehensive Plan's emphasis on fostering economic activity and creating vibrant destinations within The Colony. Compliance with the Engineering Design Manual The site plan has been prepared in accordance with the City of The Colony Engineering Design Manual. All civil engineering elements—including grading and drainage, utility infrastructure, water and sanitary sewer design, stormwater management, roadway and access improvements, and fire protection infrastructure— have been designed to comply with the standards and specifications set forth in the Engineering Design Manual. Fire hydrant placement, fire lane access, and water supply for fire flow requirements have been 151 AMAR Companies, Inc. 5001 Lyndon B Johnson Fwy #830 Dallas, TX 75244 (469) 310-1450 www.amarco.com operations@amarco.com incorporated into the site design in compliance with applicable codes. Project Vision This development is intended to deliver a modern, well-designed headquarters campus that strengthens The Colony's commercial district. The project will attract professional employment, encourage daytime activity, and contribute to the city's long-term economic vitality through high-quality design and Class A office functionality. 152 153 154 WW WWWWWWW W W W W W W W W W WWSS SS SS SS SS SS SS SS SS SS SS SS SS SS SS SS W W W W W W W W W W W W WWWWWW WWW W W W W W WWWWWWWWWWWG GGG G G G G G G G G G G G GWWWWW W W WWW W W W W WW1 CE 1 CE BERMUDA SOLID SOD, TYP. BERMUDA SOLID SOD, TYP. // // //////// // //////// // // //// // // // //// //// ////////// ////////// //////// // //// //// // // // //// // // //////// // // //// //////20 AB 13 WM 22 DBH 2 LA STEEL EDGE, TYP. 1 RO31 DBH 38 AB 2 CO 1 CE 2 CP1 RO1 RO 1 CO 2 CP 3 GM 6 TC 5 LM 1 SY 9 AS BERMUDA SOLID SOD, TYP. DECOMPOSED GRANITE, TYP.////271'-10"219'-9"271'-10"219'-9"////////// // // ////////////////////////////////////////////////////////1 LE ////////// // // 1 LE 1 TML 2 CM 1 CM 1 TML 1 FA 30 BF 18 DS 13 WM 2 CM 1 RB 2 RB 3 MP 1 LE 3 TML 1 LE 55 CR 14 LM 9 DS 50 GL 6 AS 5 TS 2 GR 1 LA 1 RO 37 SPH 41 DY 2 RB 3 FA BENCH, TYP. BIKE RACKS, TYP.////////////////////////// // // // // // 1 CO FIRE HYDRANT, TYP. 112'-6"42'-6"41'-0" FDC, TYP. 2 MP 1 CP 3 GR 4 BG 1 CE 1 CO 1 LA 2 LA 35 GL 2 FA DUE TO LOCATION OF LIGHT POLE, TREE HAS BEEN PUSHED TOWARDS THE BACK OF THE PARKING ISLANDS, TYP. 10 DS 17 DY 9 LM TREE GRATE, TYP.////////// // //////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////2" RIVER ROCK, TYP. SB SB P P P P P P P PP P P P P P P P SB SBSBSB SB SB SB NB NB NB NB NB NB NB EB EB EB EB EB EB EB WB WB WB WB WB WB F F F F F 25 BF 10 GM 15 BF DECOMPOSED GRANITE, TYP. DECOMPOSED GRANITE, TYP. 23 LM 3 TC 7 SY 13 WM 13 GM 33 DBH 9 AB BERMUDA SOLID SOD, TYP. SB NB NB 1 LE SB F DUE TO UTILITY EASEMENT, TREE HAS BEEN PLACED ON EDGE TO OFFSET UTILITY LINES DUE TO UTILITY EASEMENT, 3 ADDITIONAL ORNAMENTAL TREES HAVE BEEN PLACED IN SOUTH BUFFER TO ACCOUNT FOR ONE CANOPY TREE. NB WB SB8'-5"5'-0"4'-11"4'-0" WB SB EB NB SB P NB EB WB FF P AMARCO HQSheet Number: Sheet Title: Issue Date: 03-27-26 Drawn By: Checked By: Project Number: 26012 Revisions 3909 STATE HIGHWAY 121THE COLONY, TEXASaW RAWR Designs, LLCP.O. Box 1746Aledo, Texas 76008amanda@awr-designs.comc. 512.517.5589AWR AWRST ATE O F T E XASTCETH I R C AEPACSDNALDEE GEISRRT572 4AMANARICHDW. A RDSONL1.01 LANDSCAPE PLAN GRAPHIC SCALE FEET04020 SFDOH 1" 20'  0" GENERAL LAWN NOTES 1.CONTRACTOR SHALL COORDINATE OPERATIONS AND AVAILABILITY OF EXISTING TOPSOIL WITH ON-SITE CONSTRUCTION MANAGER 2. LAWN AREAS SHALL BE LEFT 1" BELOW FINAL FINISHED GRADE PRIOR TO TOPSOIL INSTALLATION. 3. CONTRACTOR TO FIND GRADE AREAS TO ACHIEVE FINAL CONTOURS AS SHOWN ON CIVIL DRAWINGS. POSITIVE DRAINAGE SHALL BE PROVIDED AWAY FROM ALL BUILDINGS. ROUNDING AT TOP AND BOTTOM OF SLOPES SHALL BE PROVIDED AND IN OTHER BREAKS IN GRADE. CORRECT AREAS WHERE STANDING WATER MAY OCCUR. 4. ALL LAWN AREAS SHALL BE FINE GRADED, IRRIGATION TRENCHES COMPLETELY SETTLED AND FINISH GRADE APPROVED BY THE OWNER'S CONSTRUCTION MANAGER OR LANDSCAPE ARCHITECT PRIOR TO LAWN INSTALLATION. 5. CONTRACTOR SHALL REMOVE ALL ROCKS 3/4" IN DIAMETER AND LARGER. REMOVE ALL DIRT CLODS, STICKS, CONCRETE SPOILS, TRASH ETC PRIOR TO PLACING TOPSOIL AND GRASS INSTALLATION. 6. CONTRACTOR SHALL MAINTAIN ALL LAWN AREAS UNTIL FINAL ACCEPTANCE. 7. CONTRACTOR SHALL GUARANTEE ESTABLISHMENT OF ACCEPTABLE TURF AREA AND SHALL PROVIDE REPLACEMENT IF NECESSARY. SOLID SOD: 1. SOLID SOD SHALL BE PLACED ALONG ALL IMPERVIOUS EDGES, AT A MINIMUM. THIS SHALL INCLUDE CURBS, WALKS, INLETS, MANHOLES AND PLANTING BED AREAS. SOD SHALL COVER OTHER AREAS COMPLETELY AS INDICATED BY PLAN. 2. SOD SHALL BE STRONGLY ROOTED DROUGHT RESISTANT SOD, NOT LESS THAN 2 YEARS OLD, FREE OF WEEDS AND UNDESIRABLE NATIVE GRASS AND MACHINE CUT TO PAD THICKNESS OF 3/4" (+1/4"), EXCLUDING TOP GROWTH AND THATCH. 3. LAY SOD BY HAND TO COVER INDICATED AREAS COMPLETELY, ENSURING EDGES ARE TOUCHING WITH TIGHTLY FITTING JOINTS, NO OVERLAPS WITH STAGGERED STRIPS TO OFFSET JOINTS. 4. TOP DRESS JOINTS IN SOD BY HAND WITH TOPSOIL TO FILL VOIDS IF NECESSARY 5. SOD SHALL BE ROLLED TO CREATE A SMOOTH EVEN SURFACE. SOD SHOULD BE WATERED THOROUGHLY DURING INSTALLATION PROCESS. 6. SHOULD INSTALLATION OCCUR BETWEEN OCTOBER 1ST AND MARCH 1ST, OVERSEED BERMUDAGRASS SOD WITH WINTER RYEGRASS AT A RATE OF 4 POUNDS PER 1000 S.F. LANDSCAPE NOTES 1. CONTRACTOR TO VERIFY AND LOCATE ALL PROPOSED AND EXISTING ELEMENTS. NOTIFY LANDSCAPE ARCHITECT OR DESIGNATED REPRESENTATIVE FOR ANY LAYOUT DISCREPANCIES OR ANY CONDITION THAT WOULD PROHIBIT THE INSTALLATION AS SHOWN. SURVEY DATA OF EXISTING CONDITIONS WAS SUPPLIED BY OTHERS 2. CONTRACTOR SHALL CALL 811 TO VERIFY AND LOCATE ANY AND ALL UTILITIES ON SITE PRIOR TO COMMENCING WORK. LANDSCAPE ARCHITECT SHOULD BE NOTIFIED OF ANY CONFLICTS. CONTRACTOR TO EXERCISE EXTREME CAUTION WHEN WORKING NEAR UNDERGROUND UTILITIES. 3. A MINIMUM OF 2% SLOPE SHALL BE PROVIDED AWAY FROM ALL STRUCTURES. 4. CONTRACTOR SHALL FINE GRADE AREAS TO ACHIEVE FINAL CONTOURS AS INDICATED. LEAVE AREAS TO RECEIVE TOPSOIL 3" BELOW FINAL FINISHED GRADE IN PLANTING AREAS AND 1" BELOW FINAL FINISHED GRADE IN LAWN AREAS. 5. LANDSCAPE ISLANDS SHALL BE CROWNED, AND UNIFORM THROUGHOUT THE SITE. 6. PLANTING AREAS AND SOD TO BE SEPARATED BY STEEL EDGING. NO STEEL EDGING SHALL BE INSTALLED ADJACENT TO BUILDINGS, WALKS OR CURBS. EDGING NOT TO BE MORE THAN 1/2" ABOVE FINISHED GRADE. 7. EDGING SHALL BE CUT AT 45 DEGREE ANGLE WHERE IT INTERSECTS WALKS AND/OR CURBS. 8. MULCH SHALL BE INSTALLED AT 1/2" BELOW THE TOPS OF SIDEWALKS AND CURBING. 9. QUANTITIES ON THESE PLANS ARE FOR REFERENCE ONLY. THE SPACING OF PLANTS SHOULD BE AS INDICATED ON PLANS OR OTHERWISE NOTED. ALL TREES AND SHRUBS SHALL BE PLANTED PER DETAILS. 10. CONTAINER GROWN PLANT MATERIAL IS PREFERRED HOWEVER BALL AND BURLAP PLANT MATERIAL CAN BE SUBSTITUTED IF NEED BE AND IS APPROPRIATE TO THE SIZE AND QUALITY INDICATED ON THE PLANT MATERIAL LIST.. 11. 4" OF SHREDDED HARDWOOD MULCH (2" SETTLED THICKNESS) SHALL BE PLACED OVER WEED BARRIER FABRIC. MULCH SHALL BE SHREDDED HARDWOOD MULCH OR APPROVED EQUAL, PINE STRAW MULCH IS PROHIBITED. 12. WEED BARRIER FABRIC SHALL BE USED IN PLANT BEDS AND AROUND ALL TREES AND SHALL BE MIRAFI 1405 WEED BARRIER OR APPROVED EQUAL. 13. CONTRACTOR TO PROVIDE UNIT PRICING OF LANDSCAPE MATERIALS AND BE RESPONSIBLE FOR OBTAINING ALL LANDSCAPE AND IRRIGATION PERMITS. IRRIGATION: 1. ALL REQUIRED LANDSCAPE AREAS SHALL HAVE AN AUTOMATIC IRRIGATION SYSTEM WITH A FREEZE/RAIN SENSOR. SYSTEM SHALL ALSO HAVE AN ET WEATHER BASED CONTROLLER AND BE DESIGNED AND INSTALLED BY A LICENSED IRRIGATOR. MAINTENANCE REQUIREMENTS: 1. VEGETATION SHOULD BE INSPECTED REGULARLY TO ENSURE THAT PLANT MATERIAL IS ESTABLISHING PROPERLY AND REMAINS IN A HEALTHY GROWING CONDITION APPROPRIATE FOR THE SEASON. IF DAMAGED OR REMOVED, PLANTS MUST BE REPLACED BY A SIMILAR VARIETY AND SIZE. 2. MOWING, TRIMMING, EDGING AND SUPERVISION OF WATER APPLICATIONS SHALL BE THE RESPONSIBILITY OF THE CONTRACTOR UNTIL THE OWNER OR OWNER'S REPRESENTATIVE ACCEPTS AND ASSUMES REGULAR MAINTENANCE. 3. ALL LANDSCAPE AREAS SHOULD BE CLEANED AND KEPT FREE OF TRASH, DEBRIS, WEEDS AND OTHER MATERIAL. MISCELLANEOUS MATERIALS: 1. STEEL EDGING SHALL BE 3/16" X 4 X 16' DARK GREEN DURAEDGE STEEL LANDSCAPE EDGING UNLESS NOTED OTHERWISE ON PLANS/DETAILS. 2. RIVER ROCK SHALL BE RIVER ROCK, 2" DIAMETER. RIVER ROCK SHALL BE COMPACTED TO A MINIMUM OF 3" DEPTH OVER FILTER FABRIC. 3. DECOMPOSED GRANITE SHALL CONSIST OF A NATURAL MIX OF GRANITE AGGREGATE NOT TO EXCEED 1/8" IN DIAMETER AND COMPOSED OF VARIOUS STAGES OF DECOMPOSED EARTH BASE. DG SHALL BE PLACED OVER FILTER FABRIC AT A MINIMUM OF 3" DEPTH. PARKING LOT TREE' NORTH BUFFER TREE EAST BUFFER TREE SOUTH BUFFER TREE WEST BUFFER TREE FACADE TREE LABEL LEGEND 155 6 A 5 4 3 2 B C 1 D 4.8 D' 3' B.8 3.3 MAW Moya Architecture Workshop maworkshop.com THE COLONY MIXED-USE BLDG 07/10/26 DESIGN DEVELOPMENT PHASE AMAR COMPANIES OFFICE (5,989 GSF) PATIO (337 GSF) (3) 4’ BENCHES; TOTAL OF 12 LINEAR FEET OF SEATING. (REQD.: 25 L.F. / 1000SF PATIO) July 13, 2026 1Schematic Design | Site Plan SubmittalAMAR Companies, Inc. Mixed-Use Building N 8 1640 Scale: 1/16” = 1’-0” 32’LEVEL-1 FLOOR PLAN 156 6 A 5 4 3 2 B C 1 D 4.8 D' 3' B.8 3.3 MAW Moya Architecture Workshop maworkshop.com THE COLONY MIXED-USE BLDG 07/10/26 DESIGN DEVELOPMENT PHASE AMAR COMPANIES SCALE: 1/16" = 1'-0"1 FLOOR PLAN - LEVEL 2 OFFICE (5,701 GSF) OPEN BELOW BALCONY (181 GSF) July 13, 2026 2Schematic Design | Site Plan SubmittalAMAR Companies, Inc. Mixed-Use Building N 8 1640 Scale: 1/16” = 1’-0” 32’LEVEL-2 FLOOR PLAN 157 6 A 5 4 3 2 B C 1 D 4.8 D' 3' B.8 3.3 MAW Moya Architecture Workshop maworkshop.com THE COLONY MIXED-USE BLDG 07/10/26 DESIGN DEVELOPMENT PHASE AMAR COMPANIES SCALE: 1/16" = 1'-0"1 FLOOR PLAN - LEVEL 3 BALCONY (576 GSF) OFFICE (5,989 GSF) July 13, 2026 3Schematic Design | Site Plan SubmittalAMAR Companies, Inc. Mixed-Use Building N 8 1640 Scale: 1/16” = 1’-0” 32’LEVEL-3 FLOOR PLAN 158 14'-0"14'-0"ROOF EQUIP. ARCH. SCREENING (25' SET BACK FROM FRONT OF BLDG.)COLOR: WARM GREY600 SF (19.5% OF FACADE FIN.) 3-COAT STUCCO SMOOTH FINISH. COLOR: OFF-WHITE 882 SF (28.7% OF FACADE FIN.) STONE CLADDING. COLOR: NATURAL WARM-TONE 519 SF (16.9 % OF FACADE FIN.) STOREFRONT SYSTEM STONE CLADDING. COLOR: DARK WARM GREY 762 SF (24.7% OF FACADE FIN.) LIMESTONE WALLS. 313 SF (10.2% OF FACADE FIN.) SOUTH ELEVATION EAST ELEVATION 11'-8"18'-10"21'-5"19'-7"40'-7"HORIZONTAL ARTICULATIONS ROOF LEVEL 3 LEVEL 2 LEVEL 1 TOP OF BUILDING 14'-0"14'-0"14'-0"ROOF LEVEL 3 LEVEL 2 LEVEL 1 TOP OF BUILDING 14'-5"19'-0"24'-6" 4'-0" STONE CLADDING COLOR: NATURAL WARM-TONE 975 SF (58.4% OF FACADE FIN.) 3-COAT STUCCO SMOOTH FINISHCOLOR: OFF-WHITE. 314 SF (18.8% OF FACADE FIN.) ROOF EQUIPMENT ARCH. SCREENING (25' SET BACK FROM FRONT OF BLDG.) COLOR: WARM GREY. 216 SF (12.9% OF FACADE FIN.) STOREFRONT SYSTEM STONE CLADDING COLOR: DARK WARM GREY165 SF (9.9% OF FACADE FIN.) CARPORT.STONE CLADDING ON END WALLS51'-0"51'-0"14'-0"EXTERIOR MATERIALS MAKE-UP All building envelope materials/finish are composed of: Natural & manufactured stone & 3-coat stucco. Metal materials are for typical trims such as coping & equipment screening, with colors com- plementing the natural palette of finishes. All building envelope materials/finish, other than glazing, are of natural colors: Stone, warm greys, and off-white. Metal trims are of color to match adjacent main finish. July 13, 2026 4Schematic Design | Site Plan SubmittalAMAR Companies, Inc. Mixed-Use Building 8 1640 Scale: 1/16” = 1’-0” 32’BUILDING ELEVATIONS 159 ROOF EQUIP. ARCH. SCREENING (25' SET BACK FROM FRONT OF BLDG.)COLOR: WARM GREY. 600 SF (14.2% OF FACADE FIN.) 3-COAT STUCCO SMOOTH FINISH FLOOR LINE FASCIA COLOR: OFF-WHITE WALL COLOR: WARM-GREY1,696 SF (40% OF FACADE FIN.) STONE CLADDINGCOLOR: NATURAL WARM-TONE378 SF (8.9% OF FACADE FIN.) STOREFRONT SYSTEM STONE CLADDINGCOLOR: DARK WARM GREY 1,561 SF (36.9% OF FACADE FIN.) NORTH ELEVATION WEST ELEVATION LEVEL 3 LEVEL 2 LEVEL 1 TOP OF BUILDING ROOF LEVEL 3 LEVEL 2 LEVEL 1 TOP OF BUILDING STONE CLADDING COLOR: NATURAL WARM-TONE. 970 SF (42.8% OF FACADE FIN.) 3-COAT STUCCO SMOOTH FINISHFLOOR LINE FASCIA COLOR: OFF-WHITE WALL COLOR: WARM-GREY COLOR: OFF-WHITE. 823 SF (36.3% OF FACADE FIN.) ROOF EQUIPMENT ARCH. SCREENING (25' SET BACK FROM FRONT OF BLDG.) COLOR: WARM GREY. 216 SF (9.5% OF FACADE FIN.) STOREFRONT SYSTEM51'-0"14'-0"14'-0"51'-0"14'-0"14'-0"14'-0"14'-0"CARPORT. STONE CLADDING ON END WALLS CARPORT ROOF STONE CLADDING COLOR: DARK WARM GREY. 256 SF (11.4% OF FACADE FIN.) EXTERIOR MATERIALS MAKE-UP All building envelope materials/finish are composed of: Natural & manufactured stone & 3-coat stucco. Metal materials are for typical trims such as coping & equipment screening, with colors com- plementing the natural palette of finishes. All building envelope materials/finish, other than glazing, are of natural colors: Stone, warm greys, and off-white. Metal trims are of color to match adjacent main finish. July 13, 2026 5Schematic Design | Site Plan SubmittalAMAR Companies, Inc. Mixed-Use Building 8 1640 Scale: 1/16” = 1’-0” 32’BUILDING ELEVATIONS 160 SOUTH ELEVATION LEVEL 111’-0"11’-0"STONE CLADDING ON END WALLS TOP OF ROOF METAL ROOF EAST ELEVATION LEVEL 1 TOP OF ROOF STONE CLADDING ON END WALLS METAL ROOF STEEL COLUMNS NORTH ELEVATION LEVEL 111’-0"11’-0"STONE CLADDING ON END WALLS TOP OF ROOF METAL ROOF WEST ELEVATION LEVEL 1 TOP OF ROOF STONE CLADDING ON END WALLS METAL ROOF STEEL COLUMNS EXTERIOR MATERIALS MAKE-UP All building envelope materials/fi nish are composed of: Natural & manufactured stone & 3-coat stucco. Metal materials are for typical trims such as coping & equipment screening, with colors com- plementing the natural palette of fi nishes. All building envelope materials/fi nish, other than glazing, are of natural colors: Stone, warm greys, and off-white. Metal trims are of color to match adjacent main fi nish. July 23, 2026 6Schematic Design | Site Plan SubmittalAMAR Companies, Inc. Mixed-Use Building 8 1640 Scale: 1/16” = 1’-0” 32’CARPORT ELEVATIONS 161 Agenda Item No: 5.4 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Conduct a public hearing, discuss and consider approving an ordinance levying of the Public Improvement District Annual Assessment on properties located within the City of The Colony Public Improvement District No. 1 for the Fiscal Year 2026-27. (Maurina) Background: Attachments: The Colony Grandscape PID - SAP - 2026-27 Annual SAP Update - Final Annual Service and Assessment Plan Update(1109210.1).docx Ord. 2026-xxxx The Colony Grandscape PID-SAP-2026-27 with Final Annual Service and Assessment Plan.docx 162 1775.016\1109210.1 City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2026 to September 30, 2027) Approved by City Council on September 15, 2026 163 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 2 1775.016\1109210.1 SECTION 1 INTRODUCTION Unless otherwise defined, all capitalized terms used in this "City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2026 to September 30, 2027)" (this "SAP Update") shall have the meanings set forth in that certain City of The Colony Public Improvement District No. 1 Service and Assessment Plan, originally approved on February 7, 2013, recorded in the real property records of Denton County, Texas as Instrument No. 2013-20487 (the "Original Service and Assessment Plan"), and as most recently amended, restated, and consolidated on January 19, 2021 by Ordinance No. 2021-2430 adopted by the City Council approving that certain City of The Colony Public Improvement District No. 1 Amended and Restated Service and Assessment Plan (the "Amended and Restated Service and Assessment Plan," and together with the Original Service and Assessment Plan and each annual service and assessment plan update approved by the City, referred to collectively as the "Service and Assessment Plan"). Unless otherwise defined, all references to "Section" mean a section of this SAP Update, and all references to "Exhibit" mean an exhibit to this SAP Update. 1.1 On October 8, 2012, the City Council of the City of The Colony, Texas (the "City Council" and the "City") passed and approved Resolution No. 2012-073 creating The Colony Public Improvement District No. 1 (the "District") pursuant to Chapter 372, Texas Local Government Code, as amended (the "Act"). The District includes within its boundaries approximately 439.12 contiguous acres located within the corporate limits of the City south of and adjacent to the Sam Rayburn Tollway (State Highway 121), north of and adjacent to Plano Parkway, and west of Spring Creek Parkway which property is described by metes and bounds on Exhibit A and depicted on Exhibit A-1 (the "Property"). 1.2 The Act governs the process by which the Public Improvements Cost is allocated to and assessed against the Property. This process requires the preparation of an ongoing service plan (a "Service Plan"), an assessment plan (an "Assessment Plan"), and an assessment roll (an "Assessment Roll"). 1.3 The Act requires the preparation, and the presentment to, and review and approval by, the City Council, of a Service Plan that must: (1) cover a period of at least five years; (2) define the annual indebtedness and projected costs of the Public Improvements; and (3) include a copy of the notice form required by Section 5.014 of the Texas Property Code, as amended. The Service Plan must be reviewed and updated at least annually to determine the annual budget for the Public Improvements. The City Council may approve the Service Plan only by Ordinance; and, upon approval, a copy of the Service Plan must be filed with the County Clerk of Denton County, Texas, the County in which all of the District is located, not later than the seventh (7th) day after the date of such approval. The Service Plan is contained in Section 4. 1.4 The Act requires the Service Plan to include an Assessment Plan. The Assessment Plan assesses the Public Improvements Cost against the Property on the basis of the special benefits conferred upon the Property by the Public Improvements. The Public Improvements Cost may be assessed in any manner that results in imposing equal shares of the cost on Parcels similarly benefited. The special benefit of the Public Improvements is being apportioned by this Service and Assessment Plan to the Property in the amount of the Public Improvements Cost. The Assessment Plan is contained in Section 5. 164 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 3 1775.016\1109210.1 1.5 The Act also requires the City Council to review and update the Service Plan annually for the purpose of determining the annual budget for the Public Improvements. The annual budget for the Public Improvements is contained in Section 6. The Act states that the Service Plan may be amended or updated only by Ordinance. Upon approval of an amendment or update of the Service Plan, including the notice form required by Section 5.014 of the Texas Property Code, as amended, the City Council shall file a copy of the amended or updated Service Plan with the County Clerk of Denton County, Texas, the County in which all of the District is located, not later than the seventh (7th) day after the date of such approval. 1.6 The Act requires the preparation of an Assessment Roll after the total Public Improvements Cost has been determined. The Assessment Roll must state the assessment against each Parcel determined by the method of assessment chosen by the City Council in the Assessment Plan. The assessment against a Parcel must be sufficient to pay the share of the Public Improvements Cost allocated to the Parcel and cannot exceed the special benefit conferred upon the Parcel. The Assessment Roll is contained in Section 7. 1.7 A summary of the chronological history of City Council actions for the District is attached as Exhibit F. SECTION 2 2013 FACILITY PUBLIC IMPROVEMENTS 2.1 The Assessment Roll attached as Exhibit E identifies the "Facility Property" by legal description and tax parcel identification number assigned by the Denton Central Appraisal District ("Denton CAD"). The Facility Property is the portion of the Property developed with a mixed-use facility which includes approximately 1,280,000 square feet for warehouse and distribution uses, approximately 25,000 square feet for a regional corporate headquarters, approximately 546,000 square feet for retail sales to the general public and surface and structured parking (collectively, the "Facility"). The development of the Facility Property required construction of the 2013 Public Improvements that specially benefit the Facility Property. 2.2. In connection with the 2013 Project Infrastructure Bonds to finance a portion of the costs of the 2013 Public Improvements, the City approved the Original Service and Assessment Plan for the District by adopting the 2013 Assessment Ordinance on February 7, 2013. The 2013 Assessment Ordinance levied an Assessment in the amount of $83,400,000.00 (the "2013 Facility Public Improvement Assessment") against the Facility Property for the portion of the 2013 Public Improvements Cost that the City Council determined conferred a special benefit on the Facility Property. As authorized by the Act, the 2013 Assessment Ordinance deferred the assessment of the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property (the "2013 Related Development Deferred Assessment") until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The 2013 Assessment Ordinance also deferred the assessment of the Related Development Public Improvements Cost against the Related Development Property until the portion(s) of the Related Development Property that are specially benefited by the Related Development Public Improvements could be identified. As described below, the City has levied and intends to continue levying Additional Facility Assessments against the Facility Property for costs of Additional Facility Public Improvements (that do not include the 2013 Public 165 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 4 1775.016\1109210.1 Improvements) and has levied and intends to continue levying Assessments against the Related Development Property for a portion of the costs of the Related Development Public Improvements (that do not include the 2013 Public Improvements). 2.3 The 2013 Facility Public Improvements have been constructed by or on behalf of the Corporations using, in part, the net proceeds of the 2013 Project Infrastructure Bonds. The 2013 Facility Public Improvements fall into the following categories: (i) water, wastewater, and drainage facilities or improvements, including sanitary sewer facilities, storm water detention and retention facilities, and utility relocations related to such improvements; (ii) street and roadway improvements, including related traffic signalization, signage, sidewalks, curbs, gutters, streetscape, landscaping, drainage improvements, and utility relocations related to such street and roadway improvements; (iii) mass transit facilities; (iv) park improvements, (v) landscaping; (vi) lighting and signage; (vii) pedestrian malls; and (viii) site improvements for any of the foregoing, including, but not limited to, grading, erosion control, wetlands mitigation, and floodplain reclamation. The 2013 Public Improvements are more particularly described in the engineering report titled PUBLIC IMPROVEMENTS REPORT, The City of The Colony Public Improvement District No. 1, The Colony, Texas dated November 30, 2012, prepared by Graham Associates, Inc. (the "2013 Official Report"), a copy of which report is attached as Exhibit B to the Original Service and Assessment Plan. All 2013 Facility Public Improvements, and portions of the Property on which the 2013 Facility Public Improvements have been constructed, will remain owned by the City. 2.4 The 2013 Facility Public Improvement Assessment was pledged, on a pro-rata basis (based on the par amount of each series of 2013 Project Infrastructure Bonds issued as a percentage of the total par amount of all 2013 Project Infrastructure Bonds), as additional security for each series of 2013 Project Infrastructure Bonds in the event of a Debt Service Shortfall. Assessment Revenue generated from the 2013 Facility Public Improvement Assessment, if collected by the City in the event of Debt Service Shortfall, that is pledged to pay Debt Service Shortfall for any one series of the 2013 Project Infrastructure Bonds is not pledged to pa y Debt Service Shortfalls for any other series of 2013 Project Infrastructure Bonds. In connection with each series of 2013 Project Infrastructure Bonds, each respective issuer of the 2013 Project Infrastructure Bonds entered into a reimbursement agreement relating to each respective series of 2013 Project Infrastructure Bonds (such agreements are referred to collectively as the "2013 Reimbursement Agreements"). On January 19, 2021, the City issued its 2021 LGC Tax Refunding Bonds that refunded all of the outstanding 2013 LGC Tax Bonds; and, the City entered into a 2021 LGC Tax Refunding Bonds Reimbursement Agreement relating to the 2021 LGC Tax Refunding Bonds. The 2021 LGC Tax Refunding Bonds Reimbursement Agreement pledged the portion of the 2013 Facility Public Improvement Assessments previously allocated to the 2013 LGC Tax Bonds to the 2021 LGC Tax Refunding Bonds and replaced the 2013 LGC Tax Bonds Reimbursement Agreement in its entirety. Public Improvement Bonds secured in whole or in part by Assessments levied against Property in the District as additional security in the event of a Debt Service Shortfall, including the 2013 Project Infrastructure Bonds (but excluding the 2013 LGC Tax Bonds which were refunded by the 2021 LGC Tax Refunding Bonds) and the 2021 LGC Tax Refunding Bonds, are referred to collectively as "Project Infrastructure Bonds." The 2013 Reimbursement Agreements together with the 2021 LGC Tax Bonds Reimbursement Agreement are referred to collectively as the "Reimbursement Agreements." Assessment Revenue from the 2013 Facility Public Improvement Assessment levied against the Facility Property as additional security for any series 166 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 5 1775.016\1109210.1 of Project Infrastructure Bonds will be collected in the event of a Debt Service Shortfall in Semi - Annual Installments and deposited into the PID Operating Account as described below in Section 5.9 below. SECTION 3 ADDITIONAL FACILITY IMPROVEMENTS AND RELATED DEVELOPMENT IMPROVEMENTS 3.1 In addition to the 2013 Facility Public Improvement Assessment, the City has levied and will continue to levy Assessments (the "Additional Facility Assessments") unrelated to Project Infrastructure Bonds or the 2013 Public Improvements against the Facility Property for "Additional Facility Public Improvements" that fall into the following categories: (i) water, wastewater, and drainage facilities or improvements, including sanitary sewer facilities, storm water detention and retention facilities, and utility relocations related to such improvements; (ii) street and roadway improvements, including related traffic signalization, signage, sidewalks, curbs, gutters, streetscape, landscaping, drainage improvements, and utility relocations related to such street and roadway improvements; (iii) mass transit facilities; (iv) park improvements, (v) landscaping; (vi) lighting and signage; (vii) pedestrian malls; (viii) site improvements for any of the foregoing, including, but not limited to, grading, erosion control, wetlands mitigation, and floodplain reclamation; (ix) special supplemental services for improvement and promotion of the District, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (x) payment of expenses incurred in the administration and operation of the District. The Additional Facility Public Improvements for which Assessments have been previously levied are more particularly described in the special benefits reports attached to each Annual Service Plan Update described and defined in Exhibit F and in this Section 3 of this SAP Update. The Additional Facility Assessments have not been and will not be pledged as security for any series of Project Infrastructure Bonds. The Creation Resolution establishes a cap on the amount of total costs for which Assessments may be levied against the Facility Property and in no event shall the total amount of Assessments levied against the Facility Property for the 2013 Public Improvements and the Additional Facility Public Improvements exceed $150,000,000. 3.2 As described above in Section 2.2, the City deferred the 2013 Related Development Deferred Assessment for the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property until the portion of the Related Development Property that is specially benefited by the 2013 Public Improvements could be identified. The City has levied, and intends to continue levying, additional Assessments against the Related Development Property for the remaining Related Development Public Improvements Cost (that do not include the 2013 Public Improvements) as portions of the Related Development Property that are specially benefited by the Related Development Public Improvements are developed. The costs of certain Related Development Public Improvements and the method of allocation of such costs based on the benefit conferred by such Related Development Public Improvements are included in this SAP Update; and, additional information for the Related Development Public Improvements will be included in future updates to the Service and Assessment plan as development progresses. 167 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 6 1775.016\1109210.1 3.3 The Related Development Public Improvements fall into the same categories as the 2013 Facility Public Improvements plus: (i) off street structured and surface parking facilities, (ii) special supplemental services for improvement and promotion of the District, including services relating to advertising, promotion, health and sanitation, water and wastewater, public safety, security, business recruitment, development, recreation, and cultural enhancement; and (iii) payment of expenses incurred in the administration and operation of the District. 3.4 Portions of the Related Development Property remain undeveloped, while other portions are under development or fully developed. Portions of the Property will be developed with additional mixed-use facilities including, but not limited to, entertainment, tourism, recreation, and convention facilities that will attract tourists, visitors, and shoppers from a wide geographic region, and hotels, retail stores, concessions, restaurants, and other facilities related to the entertainment, tourism, recreation, and convention uses (collectively, the "Related Development"). The Assessment Roll attached as Exhibit E identifies the "Related Development Property" by legal description and DCAD tax parcel identification number. Certain public improvements (the "Related Development Public Improvements") are or will be required to serve the Related Development Property. The Assessment Roll attached as Exhibit E also identifies the "Waterfront Property" that is the portion of the Property developed with a boardwalk and related amenities (the "Waterfront"), including public improvements required to serve the Waterfront (the "Waterfront Public Improvements", and together with the Related Development Public Improvements referred to collectively as the "Annual Related Development Public Improvements"). 3.5 All Additional Facility Public Improvements and Annual Related Development Public Improvements, and portions of the Property on which such Additional Facility Public Improvements and Annual Related Development Improvements are constructed, will remain owned by the City. 3.6 The annual costs for the Additional Facility Public Improvements, Waterfront Public Improvements and Related Development Public Improvements are estimated in the Official Report for the 2026-27 Public Improvements Cost attached as Exhibit B. The total cost of the Additional Facility Public Improvements is estimated to be $593,849.52 (the "2026-27 Additional Facility Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Waterfront Public Improvements is estimated to be $41,049.49 (the "2026-27 Waterfront Public Improvements Cost") as shown on Exhibit B. The annual total cost of the Related Development Public Improvements is estimated to be $441,388.84 (the "2026-27 Related Development Public Improvements Cost") as shown on Exhibit B. The individual line item costs shown in the Official Report for each category of Additional Facility Public Improvements and Annual Related Development Public Improvements are estimates and may vary item-to-item so long as the cost of all Public Improvements does not exceed $1,076,287.84. The 2026-27 Additional Facility Public Improvements Cost, 2026-27 Waterfront Public Improvements Cost, and 2026-27 Related Development Public Improvements Cost are sometimes referred to collectively as the "2026-27 Public Improvements Cost." A reconciliation of the 2025-26 Public Improvement Costs yielded a $366,197.00 surplus. To provide operations funding during the lag period between the budget commencement and the annual assessment collection, $265,386.04 (90 days of operating costs) was allocated to a “Pre-paid Expense” line item. An additional $13,140.00 is added to the total assessment to recover costs from parcel-specific services ("Direct Supplemental Services") as described in Exhibit D. The total sum of the 2026-27 Public Improvements Cost ($1,076,287.84), 168 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 7 1775.016\1109210.1 the 90 days of operating costs reserve ($265,386.04), and the parcel specific Direct Supplemental Services ($13,140.00) brings the overall 2026-27 costs to $1,354,813.89. The 2025-26 surplus of $366,197.00 was allocated proportionately to reduce the 2026-27 Assessment from $1,354,813.89 to $988,616.89. 3.7 Assessments levied against the Facility Property, Related Development Property, or Waterfront Property for costs of the Additional Facility Public Improvements and Annual Related Development Public Improvements, as applicable, that are not pledged as security for Project Infrastructure Bonds shall be updated annually and shall be collected as described below in Section 5.10 and shall be deposited into a sub-account of the PID Operating Account and used solely for the purposes determined by the City Council at the time the Assessments are levied. SECTION 4 SERVICE PLAN 4.1 This Section 4 is the Service Plan for the District. This Service Plan covers a period of at least five (5) years beginning with calendar year 2026 and defines the projected cost and annual indebtedness for the Public Improvements. The Service Plan shall be reviewed and updated at least annually for the purpose of determining the annual budget for the Public Improvements (each update, a "Service Plan Update"). 4.2 As confirmed by the 2021 City Ordinance, the actual costs for the 2013 Public Improvements exceeded the estimated 2013 Public Improvements Cost of $94,800,000.00 described in the Original Service and Assessment Plan, the 2013 Official Report, and 2013 Special Benefit Report. The annual indebtedness for the 2013 Public Improvements for the next five years is shown on Exhibit C-1. The annual indebtedness for the 2013 Public Improvements Cost in any given year is the sum of the Semi-Annual Installments for the Project Infrastructure Bonds for the year. 4.3 The projected Additional Facility Public Improvements Cost is $593,849.52, and for the next five years is allocated as shown on Exhibit C-2. The annual indebtedness for the Additional Facility Public Improvements shown on Exhibit C-2 is a portion of the Additional Facility Assessment the City has levied or expects to levy against the Facility Property for each year shown. The Additional Facility Assessment will also include costs related to the 90 days of operating reserve apportioned to the Facility Property as well as any Direct Supplemental Services apportioned to the Facility Property and will be adjusted by application of a portion of any prior year's surplus or deficit; all of which will be described in Exhibit D and will be updated each year. 4.4 The projected costs for the Annual Related Development Public Improvements are $4,82,438.32 and for the next five years such cost is allocated as shown on Exhibit C-3. The annual indebtedness for the Annual Related Development Public Improvements is a portion of the Assessments the City has levied or expects to levy against the Waterfront Property and Related Development Property for each year shown. The Assessments levied against the Waterfront Property and Related Development Property will also include costs related to the 90 days of operating reserve apportioned to the Waterfront Property and Related Development Property as well as any Direct Supplemental Services apportioned to the Waterfront Property and Related Development Property and will be adjusted by application of a portion of any prior year's surplus or deficit which will be described in Exhibit D and will be updated each year. 169 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 8 1775.016\1109210.1 4.5 The form of notice required by Texas Property Code Section 5.014, as amended, is attached as Exhibit C-4. SECTION 5 ASSESSMENT PLAN 5.1 Method of Assessment. This Section 5 is the Assessment Plan for the District. This Assessment Plan assesses the Public Improvements Cost against the Property on the basis of the special benefits conferred on the Property by the Public Improvements. The Act provides that the Public Improvements Cost may be assessed equally per front foot or square foot (with or without regard to the value of improvements constructed on the land) or in any other manner that results in imposing equal shares of the cost on property similarly benefited. 5.2 Best and Highest Use. Based on: (i) the size and location of the Property within the corporate limits of the City; (ii) the lack of public infrastructure to serve development of the Property; (iii) the proximity of the Property to public roadways and water and sewer facilities; (iv) the proximity of the Property to population and employment centers; (v) the scope and economic impact of the Facility, the Waterfront and the Related Development on the City, Denton County; and the north Texas region; (vi) existing and projected land uses in the vicinity of the Property; (vii) projected growth in the greater Dallas metropolitan area and, in particular, along the State Highway 121 corridor; and (viii) the quality of the proposed development within the Property, the City Council has determined that: (A) the best and highest use of the Property is for the development of the Facility, the Waterfront, and the Related Development; (B) achieving the best and highest use of the Property requires the Public Improvements; (C) without the Public Improvements the Property will not be developed to its best and highest use; (D) the establishment of the District provides an effective means of funding the Public Improvements to achieve the best and highest use for the Property without financial burden to the City; and (E) the Public Improvements will promote the interests of the City and confer a special benefit on the Property. 5.3 Assessments Against Facility Property. As described in Section 2.2 above, the City has levied the 2013 Facility Public Improvement Assessment in the amount of $83,400,000.00 against the Facility Property for the portion of the 2013 Public Improvements Cost that the City Council determined conferred a special benefit on the Facility Property. Based on the costs shown in the Official Report for the 2026-27 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied $558,051.73 in Assessments against the Facility Property as shown on the Assessment Roll attached as Exhibit E which consists of $593,849.52 for the 2026-27 Additional Facility Public Improvements Costs plus $94,948.88 or approximately 35.78% of the 90 days of operating costs plus $270 in specific Direct Supplemental Services minus $131,016.67 or approximately 35.78% of the 2025-26 surplus described in Section 3.6 above apportioned to the Facility Property based on the benefit analysis described in Exhibit D. As the Facility Property is specially benefitted by Additional Facility Improvements, the City intends to continue to levy Assessments against the Facility Property. The Creation Resolution establishes a cap on the total costs for which Assessments may be levied against the Facility Property and in no event shall the total amount of Assessments levied against the Facility Property for the 2013 Public Improvements and the Additional Facility Public Improvements exceed $150,000,000. As shown in Paragraphs 1 and 2 of Section 7 below, a total of $93,069,955.66 has been levied against the Facility Property, consisting of $83,400,000.00 for the 2013 Public Improvements and $9,669,955.66 for the Additional Facility Public Improvements. 170 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 9 1775.016\1109210.1 5.4 Assessments Against Related Development Property. As described in Section 2.2 above, the City deferred assessment of the remainder of the 2013 Public Improvements Cost in the amount of $11,400,000.00 for the portion of the 2013 Public Improvements that specially benefit the Related Development Property (the "2013 Related Development Deferred Assessment") until the portion of the Related Development Property (which included the Waterfront Property at the time of the deferral) that is specially benefited by the 2013 Public Improvements could be identified. The deferral of the levy of the 2013 Related Development Deferred Assessment in the amount of $11,400,000.00 under the 2013 Assessment Ordinance is hereby restated and shall be deferred until the development of the Property is certified as complete by the owner. Based on the costs shown in the Official Report for the 2026-27 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied Assessments in the amount of $36,080.65 (as shown on Exhibit E, the "2026 Waterfront Assessment") against the Waterfront Property consisting of $41,049.49 for the costs of 2026-27 Waterfront Public Improvements plus $14,502.08 or approximately 5.46% of the 90 days of operating costs plus $540 in specific Direct Supplemental Services minus $20,010.92 or approximately 5.46% of the 2026-27 surplus described in Section 3.6 above apportioned to the Waterfront Property based on the benefit analysis described in Exhibit D. Based on the costs shown in the Official Report for the 2026-27 Public Improvements attached as Exhibit B and the Special Benefits Report attached as Exhibit D, the City has levied Assessments in the amount of $394,484.50 (as shown on Exhibit E, the "2026 Related Development Assessment") against the Related Development Property consisting of $441,388.84 for the costs of 2026-27 Related Development Public Improvements plus $155,935.09 or approximately 58.76% of the 90 days of operating costs plus $12,330.00 in specific Direct Supplemental Services minus $215,169.42 or approximately 58.76% of the 2025-26 surplus described in Section 3.6 above apportioned to the Related Development Property based on the benefit analysis described in Exhibit D. As portions of the Waterfront Property that are specially benefited by the Waterfront Public Improvements are developed and as portions of the Related Development Property that are specially benefited by the Related Development Public Improvements are developed, the City intends to continue to levy additional Assessments against the Waterfront Property and the Related Development Property, as applicable, for the remaining Waterfront Pubic Improvements Costs and the Related Development Public Improvements Costs (and that do not include the 2013 Public Improvements) as described in Section 3.2 above. The Creation Resolution establishes a cap of $150,000,000 of the total costs for which Assessments may be levied for the "Related Improvements Costs" (as defined in the Creation Resolution). As shown in Paragraph 3 of Section 7 below, a total of $6,696,330.57 has been levied for the Annual Related Development Public Improvements (consisting of the Waterfront Public Improvements and Related Development Public Improvements) which does NOT include the 2013 Related Development Deferred Assessment in the amount of $11,400,000.00. 5.5 Adjustment of Assessments. With the exception of the 2013 Facility Public Improvement Assessment, the Assessments described in this Section 5 are based on estimates of the Public Improvement Costs until construction of the Public Improvements, or provision of services if applicable, is complete. If the actual cost of the Public Improvements is less than the estimates, the Assessments shall be reduced as determined by the Administrator and approved by the City Council in a Service Plan Update. 171 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 10 1775.016\1109210.1 5.6 Subdivision; Change to Tax Exempt. 5.6.1 Upon Subdivision. If the Facility Property is subdivided, any Assessment levied against the Facility Property shall be reallocated as described in Section 4.6.1 of the Service and Assessment Plan. Additionally, other than annual Assessments for the Annual Related Development Public Improvements that are not pledged as security to any series of PID bonds, any Assessment against Related Development Property will not be reallocated among subdivided Parcels until the development of the Related Development Property is certified as complete by the owner. If the Related Development Property or Waterfront Property is subdivided, the annual Assessment levied against Related Development Property or Waterfront Property under this SAP Update for the Annual Related Development Public Improvements will be reallocated among the subdivided Parcels on a per-acre basis as determined by the Administrator and reflected in a Service Plan Update approved by the City Council after a public hearing for which notice addressed to "Property Owner" has been mailed, regular mail, to the current address of the owner of the property being subdivided as reflected on the tax rolls. 5.6.2 Upon Becoming Tax Exempt. If any portion of the Facility Property becomes exempt from the payment of ad valorem taxes, the owner of such portion shall pay to the City the unpaid principal amount of the Assessment allocated (on a per-acre basis) to such portion of the Facility Property plus, if applicable, accrued interest through the date of payment. Prepayment Costs, if any, shall be paid as a Semi-Annual Administrative Cost. If any portion of the Related Development Property or Waterfront Property becomes exempt from the payment of ad valorem taxes, the owner of such portion shall pay to the City the unpaid principal amount of the Assessment allocated (on a per-acre basis) to such portion of the Property. 5.7 Prepayment of Assessments. The unpaid principal amount of an Assessment may be prepaid in full or in part at any time, together with accrued interest, if any, through the date of prepayment; whereupon the Assessment and corresponding assessment lien automaticall y terminate and shall be reduced to zero in a Service Plan Update. Prepayment Costs, if any, may be paid by the Administrator from Semi-Annual Administrative Cost. 5.8 Accrual of Interest. Assessments shall not bear interest except for interest authorized by Section 372.018(a) of the Act. Assessments that are deferred may bear interest as approved by the City Council at the time the Assessments are levied. 5.9 Semi-Annual Installments of Assessments Related to Project Infrastructure Bonds. Assessments levied against the Facility Property and/or the Related Development Property and pledged as security to any series of Project Infrastructure Bonds, including the 2013 Facility Public Improvement Assessment securing the 2013 Project Infrastructure Bonds and 2021 LGC Tax Refunding Bonds, shall be due and payable to the City in Semi-Annual Installments as set forth in the applicable Reimbursement Agreement beginning on the date stated in the applicable Reimbursement Agreement and continuing every March 1 and September 1 thereafter and will be delinquent if not paid within three calendar days after it is due and payable. Semi-Annual Installments are not required to be level amounts and will vary depending on Semi-Annual District Expenses and the amounts, if any, of Debt Service Shortfalls. For so long as any Project Infrastructure Bonds remain outstanding, each of the Corporations, pursuant to a Reimbursement 172 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 11 1775.016\1109210.1 Agreement, is required to calculate its respective Debt Service Shortfall amount for each bond issue based on the "Bond Debt Service" schedules attached as Exhibit E-1, and each Corporation shall certify such Debt Service Shortfall amount to the City no later than each February 1 or August 1, commencing August 1, 2013 (each a "Semi-Annual Calculation Date"). Upon notification of each Debt Service Shortfall amount due for each bond issue, the City shall calculate the amount of the Semi-Annual Installment and shall submit a bill to each property owner no later than each February 15 and August 15 (each a "Semi-Annual Billing Date"). The City will use all reasonable efforts to collect Semi-Annual Installments before they become delinquent. If a Semi- Annual Installment becomes delinquent, all remedies at law or under the Act shall be available to the City. If a Debt Service Shortfall is anticipated for more than one series of Project Infrastructure Bonds, a portion of the funds in the PID Operating Account shall be transferred on a pro-rata basis to separate sub-accounts corresponding to each issue of Project Infrastructure Bonds for which a Debt Service Shortfall is anticipated to occur; and, such amounts shall be paid by the City from such sub-accounts to each of the Corporations under the applicable Reimbursement Agreement to pay Debt Service Shortfalls for the applicable series of Project Infrastructure Bonds. As required under each respective Reimbursement Agreement, each Corporation calculated any anticipated Debt Service Shortfall based on the Bond Debt Service schedules no later than February 1, 2026 and August 1, 2026; and, each Corporation determined there would be no Debt Service Shortfall and no Semi-Annual Installments were required to be paid for calendar year 2026. 5.10 Annual Payment of Assessments Not Related to Project Infrastructure Bonds. Assessments levied against the Facility Property or the Related Development Property for costs of the Additional Facility Public Improvements or the Related Development Public Improvements that are not pledged as security for Project Infrastructure Bonds shall be updated annually and shall be collected by the City in the same manner and at the same time as ad valorem taxes in the amount shown on the Assessment Rolls attached to each Annual Service Plan Update. Such Assessments shall be due when billed and shall be delinquent if not paid prior to February 1 of the following year. Failure of a landowner to receive an invoice for such Assessment on the property tax bill shall not relieve the landowner of the responsibility for payment of the Assessment. Assessment Revenue collected by the City from Assessments levied against the Facility Property or the Related Development Property for Additional Facility Public Improvements and/or Related Development Public Improvements based on the special benefit conferred by such Additional Facility Public Improvements or the Related Development Public Improvements that is not pledged as security for any series of Project Infrastructure Bonds and shall be deposited into a sub-account of the PID Operating Account and used solely for the purposes determined by the City Council at the time the Assessments are levied. 5.11 PID Operating Account. Assessment Revenue from the collection of Semi-Annual Installments of an Assessment against the Facility Property and/or Related Development Property in connection with the issuance of a series of Project Infrastructure Bonds will be deposited by the City into the PID Operating Account, including sub -accounts corresponding to each issue of Project Infrastructure Bonds, as applicable, immediately upon receipt and will be transferred by the City to the respective Corporations, or to the applicable trustee(s) for the benefit of such Corporations, to pay Debt Service Shortfalls, if any, by September 5, 2013, and by each March 5 and September 5 thereafter for so long as Project Infrastructure Bonds are outstanding. Assessment Revenue from the collection of an Assessment against the Facility Property and/or Related Development Property unrelated to the issuance of a series of Project Infrastructure Bonds will be 173 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 12 1775.016\1109210.1 deposited by the City into the PID Operating Account, including sub-accounts as applicable, immediately upon receipt and shall be used solely for the purposes determined by the City Council at the time such Assessments were levied. Any Assessment Revenue due to the Corporations on any such date but collected by the City after the due date shall be transferre d to the respective Corporations or applicable trustee(s) within two business days. Assessment Revenue from the collection of any Assessment against the Property will be deposited by the City into the PID Operating Account for Annual Assessments. Assessment Revenue from the 2026 Related Development Assessment against all or any portion of the Property will be collected in lump sum within 30 days of the levy of the assessment or with the annual property tax collection and deposited into a segregated operating account (the "PID Operating Account for Annual Assessments") created and controlled by the City. Interest earned on the PID Operating Account for Annual Assessments shall be added to and become part of the PID Operating Account for Annual Assessments. The PID Operating Account for Annual Assessments is a separate account and segregated from the "PID Operating Account" described in the Service and Assessment Plan that was created pursuant to the 2013 Assessment Ordinance (such account is referred to herein as the "PID Operating Account for Pledged Revenues.") All Assessment Revenue from the 2013 Facility Public Improvement Assessment and the 2013 Related Development Deferred Assessment levied pursuant to Ordinance No. 2013-1992 shall be deposited into the PID Operating Account for Pledged Revenues and transferred from that account, if at all, consistent with the requirements of 2013 Assessment Ordinance and the trust indentures governing the Project Infrastructure Bonds. All Assessment Revenue from any Assessment levied on an annual basis shall be deposited into the PID Operating Account for Annual Assessments and used solely for the purposes determined by the City Council at the time the Assessments are levied. 5.12 Reduction of Assessment Against the Property. The Assessment against the Facility Property (and the corresponding assessment lien) shall be reduced by the sum of all amounts by which the outstanding principal of the Project Infrastructure Bonds for which the PID Operating Account is pledged, as additional security, are reduced and by sum of all prepayments of the Assessment made pursuant to Section 5.7. The current outstanding principal amount of the Assessments levied against the Facility Property based on the debt service schedules related to the Project Infrastructure Bonds attached as Exhibit E-1 is set forth in Section 7 below. The Assessment against the Property (and the corresponding assessment lien) shall be reduced by the sum of all amounts by which the Public Improvement Costs are reduced. 5.13 Security for Payment. All payments due in accordance with the Service and Assessment Plan as updated by this SAP Update shall be treated the same with respect to the liens created to secure payment and the rights of the City, including foreclosure, in the event of delinquencies. Any foreclosure sale of a Parcel for nonpayment of any such amounts shall be subject to a continuing lien for the remaining unpaid amounts in accordance with state law. All assessment liens created pursuant to the 2013 Assessment Ordinance are superior to any lien created by any other ordinance approving an Annual Service Plan Update, including this SAP Update. 5.14 Release of Lien. When an Assessment has been paid in full, the Administrator shall notify the City, and the City shall execute a release, in recordable form, evidencing full payment of the Assessment and the unconditional release of the lien securing payment of the Assessment. All releases shall be reflected in a Service Plan Update. 174 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 13 1775.016\1109210.1 5.15 Findings and Determinations. The findings and determinations by the City Council set forth in this Service and Assessment Plan are based on: (i) the 2013 Official Report prepared by Graham Associates, Inc.; (ii) the 2013 Special Benefit Report prepared by Graham Associates, Inc.; (iii) evidence and testimony presented to the City Council; and (iv) information made available to the City Council. The City Council hereby confirms and ratifies the findings and determinations made by the City Council in each of the Assessment Ordinances described and defined in Exhibit F, including the special benefits reports and annual service plan updates attached thereto. The City Council has relied on the information contained in the 2013 Official Report, 2013 Special Benefit Report, the reports and special benefit analysis contained in each Annual Service Plan Update, evidence, and testimony in the preparation and approval of this Service and Assessment Plan and the allocation of the Public Improvements Cost to the Property. Such findings and determinations represent the discretionary exercise by the City Council of its legislative and governmental authority and power, and such findings and determinations are conclusive and binding on the current and future owners of the Property. The Corporations have concurred in and approved the findings and determinations by the City Council as set forth in this Service and Assessment Plan and have otherwise concurred in and approved this Service and Assessment Plan and the levy of Assessments against the Property. The Corporations have acknowledged that the Property is subject to payment of Assessments and/or Semi-Annual Installments as provided in this Service and Assessment Plan and in the Reimbursement Agreements. SECTION 6 ANNUAL BUDGET FOR PUBLIC IMPROVEMENTS 6.1 2013 Public Improvements Costs. On January 19, 2021, the City approved Ordinance No. 2021-2430 (the "2021 City Ordinance"), approving the Amended and Restated Service and Assessment Plan and making certain finding and determinations related to the District. In the 2021 City Ordinance, the City Council ratified and confirmed the allocation of the 2013 Public Improvements Cost approved by the 2013 Assessment Ordinance and Original Service and Assessment Plan as follows: (1) $83,400,000 for the special benefit to the Facility Property for which the 2013 Facility Public Improvement Assessment was levied, and (2) $11,400,000.00 for the benefit to the Related Development Property for which the 2013 Related Development Deferred Assessment has been deferred. Additionally, the 2021 City Ordinance confirmed that the actual costs for the 2013 Public Improvements exceeded the estimated 2013 Public Improvements Cost of $94,800,000.00 described in the Original Service and Assessment Plan, the 2013 Official Report, and 2013 Special Benefit Report. 6.2 2026 Public Improvements Cost. The City Council has received, reviewed, and approved that certain SPECIAL BENEFITS REPORT, The City of The Colony Public Improvement District No. 1, The Colony, Texas, dated September 1, 2026, prepared by Executive Business Liaison Jeremie Maurina, a copy of which is attached as Exhibit D (the "2026-27 Special Benefits Report”). The individual line item costs shown in the 2026-2027 Special Benefits Report for each category of improvements are estimates and may vary item-to-item so long as the Public Improvements Cost does not exceed $1,076,287.84 (which does not include the $265,386.04 for 90 days of operating costs plus $13,140 for Direct Supplemental Services minus the 2025-26 surplus in the amount of $366,197). 175 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 14 1775.016\1109210.1 SECTION 7 ASSESSMENT ROLL This Section 7 describes the Assessment Roll for the District. The Assessment Roll is set forth on Exhibit E and consists of: 1. The 2013 Facility Public Improvement Assessment originally levied in principal amount of $83,400,000.00 by the 2013 Assessment Ordinance has an outstanding principal amount of $68,190,642.53 as of December 31, 2026. The 2013 Facility Public Improvement Assessment is allocated as follows among the Project Infrastructure Bonds: Pro-Rata Share(1) Allocated Portion of Original 2013 Facility Public Improvement Assessment Outstanding Principal Amount of 2013 Facility Public Improvement Assessment as of 12/31/2026 2013 LGC Sales Tax Bonds 16.80% $14,011,200 $ 12,135,685.04 (2) 2021 LGC Tax Refunding Bonds(3) 20.60% $17,180,400(3) $ 11,427,188.93 (2) 2013 Type A Bonds 31.30% $26,104,200 $ 22,313,884.28 (2) 2013 Type B Bonds 31.30% $26,104,200 $ 22,313,884.28 (2) (1) Pro-rata allocation of the original principal amount of the $83,400,000 2013 Facility Public Improvement Assessment was based on the par amount of each series of 2013 Project Infrastructure Bonds issued as a percentage of the total par amount of all 2013 Project Infrastructure Bonds. (2) In accordance with Section 5.12 above, the principal amount of the 2013 Facility Public Improvement Assessment was reduced by the sum of all amounts by which the outstanding principal amount of the 2013 Project Infrastructure Bonds have been reduced. As of December 31, 20 26, the outstanding par amount of the 2013 Project Infrastructure Bonds (with the 2021 LGC Tax Refunding Bonds) will be $77,300,000 thus reducing the outstanding 2013 Facility Public Improvement Assessment to $68,190,642.53. The following Semi-Annual Installments have been collected to pay Debt Service Shortfalls on the 2013 LGC Sales Tax Bonds: on February 14, 2017 in the amount of $500,081.25; on July 17, 2017 in the amount of $1,158,162.50; on July 16, 2018 in the amount of $1,294,662.50; and on July 25, 2019 in the amount of $1,306,963.00 for a total of $4,259,869.25 which payments do not reduce the principal amount of the 2013 Facility Public Improvement Assessment. (3) The pro-rata share of the 2013 Facility Public Improvement Assessment that formerly secured the 2013 LGC Tax Bonds now secures the 2021 LGC Tax Refunding Bonds. [Remainder of page left blank intentionally.] 176 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 15 1775.016\1109210.1 2. Assessments related to the Additional Facility Public Improvements: Original Principal Amount Levied Outstanding as of 10/1/2026 2015 Facility Assessment (1) $959,247.96 $0.00 2015-16 Facility Assessment (2) $1,218,234.83 $0.00 2016 Facility Assessment $875,155.64 $0.00 2017 Facility Assessment $658,465.00 $0.00 2018 Facility Assessment $810,379.62 $0.00 2019 Facility Assessment $570,667.99 $0.00 2020 Facility Assessment $862,382.25 $0.00 2021 Facility Assessment $535,879.94 $0.00 2022 Facility Assessment $731,985.36 $0.00 2023 Facility Assessment $691,853.18 $0.00 2024 Facility Assessment $613,682.54 $0.00 2025 Facility Assessment $583,969.62 $0.00 2026 Facility Assessment $558,051.73 $558,051.73 TOTAL: $9,669,955.66 (1) Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2) Levied under Ordinance No. 2015-2160 approved on September 15, 2015. 3. Assessments related to the Annual Related Development Public Improvements:1 Original Principal Amount Levied Outstanding as of 10/1/2026 2015 Related Development Assessment (1) $420,053.04 $0.00 2015-16 Related Development Assessment (2) $236,757.17 $0.00 2016 Related Development Assessment $287,680.36 $0.00 2017 Related Development Assessment $872,993.00 $0.00 2018 Related Development Assessment $687,426.36 $0.00 2019 Related Development Assessment $490,441.03 $0.00 2020 Related Development Assessment $810,043.90 $0.00 2021 Related Development Assessment $366,446.95 $0.00 2022 Related Development Assessment $572,445.40 $0.00 2023 Related Development Assessment $643,597.28 $0.00 1 Includes the Assessments levied against the Waterfront Property and the Related Development Property. Excludes the 2013 Related Development Deferred Assessment. 177 The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update - Page 16 1775.016\1109210.1 Original Principal Amount Levied Outstanding as of 10/1/2026 2024 Related Development Assessment $486,578.04 $0.00 2025 Related Development Assessment $391,302.89 $0.00 2026 Related Development Assessment $430,565.15 $430,565.15 TOTAL: $6,696,330.57 (1) Levied under Ordinance No. 2015-2136 approved on May 5, 2015. (2) Levied under Ordinance No. 2015-2160 approved on September 15, 2015. As authorized by the Act, the assessment of the 2013 Related Development Deferred Assessment in the amount of $11,400,000 for the portion of the 2013 Facility Public Improvements that benefit the Related Development Property remains deferred until the development of the Related Development Property is certified as complete by the owner which will be the time at which the special benefit conferred on the Related Development Property can be determined with certainty. SECTION 8 ADDITIONAL PROVISIONS 8.1 Severability. The provisions of this Service and Assessment Plan are intended to be severable. In the event any provision of this Service and Assessment Plan, or the application thereof to any person or circumstance, is held or determined to be invalid, illegal, or unenforceable, and if such invalidity, unenforceability, or illegality does not cause substantial deviation from the underlying intent of the City Council as expressed in this Service and Assessment Plan, then such provision shall be deemed severed from this Service and Assessment Plan with respect to such person, entity, or circumstance without invalidating the remainder of this Service and Assessment Plan or the application of such provision to other persons, entities, or circumstances. 8.2 Exhibits. The following exhibits are part of this Service and Assessment Plan: Exhibit A: Legal Description of the Property Exhibit A-1: Depiction of the Property Exhibit B: Official Report - 2026-27 Public Improvements Cost Exhibit C-1: Service Plan: Five-Year Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Exhibit C-2: Service Plan: Five-Year Projection of Annual Indebtedness Related to Additional Facility Public Improvements Exhibit C-3: Service Plan: Five-Year Projection of Annual Indebtedness Related to Annual Related Development Public Improvements Exhibit C-4: Form of Notice Required by Texas Property Code Section 5.014 Exhibit D: Special Benefits Report Exhibit E: Assessment Roll Exhibit E-1: Bond Debt Service Schedules for Calculating Debt Service Shortfall Exhibit F: Chronological History of City Council Legislative Actions for the District 178 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 1 1775.016\1109210.1 Being a 439.12 acre tract of land situated in the B.B.B & C.R.R. Survey, Abstract No. 173, B.B.B. & C. Survey, Abstract No. 174, Thomas A. West Survey, Abstract No. 1344, and the M.D.T. Hallmark Survey, Abstract No. 570, Denton County, Texas, and being all of a tract of land conveyed by deed to 121 Acquisition Company, LLC., as recorded in Instrument No. 2011-114773, 2011-121444, and 2011-112195, Deed Records, Denton County, Texas, and a portion of Plano Parkway and a portion of Burlington Northern Railroad tract, and being more particularly described as follows: BEGINNING at a found TxDOT monument, said point being the northwest corner of said 121 Acquisition Company, LLC tract and being in the south right-of-way line of State Highway 121 (having a variable width R.O.W.); THENCE North 63°32'06" East, along said south right-of-way line, a distance of 130.52 feet to a point for corner; THENCE North 60°22'33" East, continuing along said south right -of-way line, a distance of 80.86 feet to a point for corner; THENCE South 29°13'03" East, continuing along said south right -of-way line, a distance of 50.00 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 219.64 feet to a point for corner, said point being in the west right-of-way line of Plano Parkway (100 ft R.O.W.); THENCE North 50°53'35" East, leaving said south right-of-way line, and leaving said west right-of-way line, a distance of 100.00 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 1°26'54" and a long chord which bears North 38°22'58" West, 24.01 feet, said point being in the east right-of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 24.01 feet to a point for corner, said point being the most southerly point of a corner -clip of the intersection of said east right-of- way line of Plano Parkway and the south right-of-way line of said State highway 121; THENCE North 08°46'31" East, along said corner-clip, a distance of 26.03 feet to a point for corner, said point being in the south right-of-way line of said State highway 121; THENCE North 60°47'38" East, along said south right-of-way line, a distance of 203.71 feet to a point for corner; THENCE North 58°17'36" East, continuing along said south right -of-way line, a distance of 252.11 feet to a point for corner; THENCE North 55°47'40" East, continuing along said south right-of-way line, a distance of 105.11 feet to a point for corner; THENCE North 58°17'42" East, continuing along said south right -of-way line, a distance of 248.62 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 263.85 feet to a point for corner; THENCE North 76°30'51" East, continuing along said south right -of-way line, a distance of 92.27 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right-of-way line, a distance of 100.40 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right -of-way line, a distance of 100.18 feet to a point for corner; THENCE North 60°16'36" East, continuing along said south right-of-way line, a distance of 39.88 feet to a point for corner; THENCE South 74°12'01" East, continuing along said south right -of-way line, a distance of 70.70 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right-of-way line, a distance of 64.12 feet to a point for corner; THENCE North 15°47'17" East, continuing along said south right -of-way line, a distance of 73.27 feet to a point for corner; THENCE North 59°04'32" East, continuing along said south right -of-way line, a distance of 94.25 feet to a point for corner; 179 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 2 1775.016\1109210.1 THENCE North 55°39'04" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 47°37'54" East, continuing along said south right -of-way line, a distance of 114.18 feet to a point for corner; THENCE North 60°47'38" East, continuing along said south right -of-way line, a distance of 3800.00 feet to a point for corner; THENCE North 65°20'10" East, continuing along said south right -of-way line, a distance of 189.41 feet to a point for corner; THENCE North 61°56'23" East, continuing along said south right -of-way line, a distance of 100.02 feet to a point for corner; THENCE North 63°39'23" East, continuing along said south right -of-way line, a distance of 100.12 feet to a point for corner; THENCE North 64°47'53" East, continuing along said south right -of-way line, a distance of 100.24 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right -of-way line, a distance of 201.00 feet to a point for corner; THENCE North 65°56'12" East, continuing along said south right -of-way line, a distance of 100.40 feet to a point for corner; THENCE North 66°30'16" East, continuing along said south right -of-way line, a distance of 100.50 feet to a point for corner; THENCE North 63°05'04" East, continuing along said south right -of-way line, a distance of 100.08 feet to a point for corner; THENCE North 64°13'39" East, continuing along said south right -of-way line, a distance of 100.18 feet to a point for corner; THENCE North 83°05'27" East, continuing along said south right -of-way line, a distance of 69.58 feet to a point for corner; THENCE North 60°39'18" East, continuing along said south right -of-way line, a distance of 33.81 feet to a point for corner, said point being in the west right -of-way line of Burlington Northern Railroad (having a variable width R.O.W.); THENCE North 60°38'52" East, leaving said west right-of-way line, a distance of 107.30 feet to a point for corner, said point being in the east right-of-way line of said Burlington Northern Railroad; THENCE North 60°45'58" East, leaving said east right-of-way line, continuing along said south right -of-way line of State Highway 121, a distance of 254.35 feet to a point for corner; THENCE North 63°19'02" East, continuing along said south right -of-way line, a distance of 585.96 feet to a point for corner; THENCE North 60°52'09" East, continuing along said south right -of-way line, a distance of 369.37 feet to a point for corner, said point being in the west right-of-way line of West Spring Creek Parkway (having a 160 ft R.O.W.); THENCE South 29°24'43" East, leaving said south right -of-way line, and along said west right-of-way line, a distance of 265.52 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 970.00 feet and a central angle of 29°13'42", and a long chord which bears South 14°53'13" East, 489.48 feet; THENCE continuing along said west right-of-way line, and along said non-tangent curve to the right an arc distance of 494.83 feet to a point for corner; THENCE South 00°22'42" East, continuing along said west right -of-way line, a distance of 476.17 feet to a point for corner; THENCE South 00°23'35" East, continuing along said west right-of-way line, a distance of 864.92 feet to a point for corner, said point being in the north line of Kings Ridge Addition, Phase Three, as recorded in Cabinet X, Page 450, Plat Records, Denton County, Texas; THENCE South 89°40'20" West, leaving said west right-of-way line, and along said north line, a distance of 1199.93 feet to a point for corner, said point being in the east right -of-way line of said Burlington Northern Railroad; 180 Exhibit A Legal Description of the Property (439.12 Acres) Exhibit A to The Colony SAP – Legal Description of the Property - Page 3 1775.016\1109210.1 THENCE North 87°39'44" West, leaving said north line, leaving said east right-of-way line, a distance of 101.16 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 3703.75 feet and a central angle of 3°44'19" and a long chord which bears South 04°12'25" West, 241.62 feet, said point being in the west right- of-way line of said Burlington Northern Railroad; THENCE along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 241.67 feet to a point for corner; THENCE South 06°04'35" West, continuing along said east right-of-way line, a distance of 2524.64 feet to a point for corner; THENCE North 83°17'00" West, continuing along said east right-of-way line, a distance of 190.16 feet to a point for corner; THENCE South 00°51'51" East, continuing along said east right-of-way line, a distance of 970.10 feet to a point for corner; THENCE South 89°03'50" West, continuing along said east right -of-way line, a distance of 31.06 feet to a point for corner; THENCE South 01°14'37" East, continuing along said east right-of-way line, a distance of 447.78 feet to a point for corner; THENCE North 87°06'22" West, leaving said east right -of-way line, a distance of 1240.48 feet to a point for corner, for the beginning of a non-tangent curve to the left having a radius of 1130.00 feet and a central angle of 103°16'58", and a long chord which bears North 38°43'34" West, 1772.16 feet, said point being in the east right -of-way line of said Plano Parkway; THENCE along said east right-of-way line, and along said non-tangent curve to the left an arc distance of 2036.97 feet to a point for corner; THENCE South 89°38'05" West, continuing along said east right-of-way line, a distance of 647.23 feet to a point for corner, for the beginning of a non-tangent curve to the right having a radius of 950.00 feet and a central angle of 40°05'36" and a long chord which bears North 70°19'29" West, 651.29 feet; THENCE continuing along said east right-of-way line, and along said non-tangent curve to the right an arc distance of 664.77 feet to a point for corner, for the beginning of a reverse curve to the left having a radius of 1050.00 feet and a central angle of 40°15'06" and a long chord which bears North 70°25'01" West, 722.57 feet; THENCE continuing along said east right -of-way line, and along said curve to the left an arc distance of 737.65 feet to a point for corner; THENCE South 89°31'25" West, continuing along said east right-of-way line, a distance of 623.83 feet to a point for corner, for the beginning of a tangent curve to the right having a radius of 950.00 feet, a central angle of 0°48'07", and a long chord which bears South 89°55'28" West, 13.21 feet; THENCE continuing along said east right-of-way line, along said curve to the right, an arc distance of 13.21 feet to a point for corner; THENCE South 00°19'22" West, leaving said east right -of-way line, a distance of 100.00 feet to a point for corner, said point being in the west right-of-way line of said Plano Parkway; THENCE South 89°58'40" West, leaving said west right-of-way line, a distance of 1210.45 feet to a point for corner; THENCE North 00°25'18" West, a distance of 226.47 feet to the POINT OF BEGINNING and CONTAINING 19,128,279 square feet, 439.12 acres of land, more or less. 181 Exhibit A-1 Depiction of the Property Exhibit A-1 to The Colony SAP – Depiction of the Property - Page 1 1775.016\1109210.1 182 EXHIBIT B Exhibit B to The Colony SAP – Official Report - Public Improvement Cost - Page 1 1775.016\1109210.1 OFFICIAL REPORT 2026-27 PUBLIC IMPROVEMENTS COST The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: September 1, 2026 183 Exhibit B Exhibit B to The Colony SAP – Official Report - Public Improvements Cost - Page 2 1775.016\1109210.1 Official Report - Public Improvements Cost1 Public Improvements Facility Waterfront Related Development TOTALS Enhanced Traffic Services $50,466.08 $0 $0 $50,466.08 Enhanced Police Services $2 74,621.76 $0 $0 $274,621.76 Special Supplemental Services2 $258,386.16 $3 9,464.78 $4 24,349.06 $722,200 .00 Lake Maintenance $10,375.52 $1,5 84.71 $17,039.77 $29,000.00 TOTALS $593,849.52 $41,049.49 $441,388.84 $1,076,287.84 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Di rect Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 2 Special Supplemental Services include contractual services related to health and sanitation, water and wastewater, landscaping, and operation of the PID. 184 Exhibit C-1 Service Plan: Five-Year Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Exhibit C-1 to The Colony SAP - Projection of Annual Indebtedness Related to 2013 Facility Public Improvements Cost - Page 1 1775.016\1109210.1 Year Principal1 Semi-Annual Collection Costs2 Delinquent Collection Costs3 Annual Administrative Costs4 Estimated Annual Indebtedness 2026 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2027 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2028 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2029 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 2030 See Sections 4.2 and 5.9 $5,000 $0 $5,000 See Section 5.9 1. See Section 7, Paragraph 1 for the outstanding Principal Amount of the 2013 Facility Public Improvement Assessment as of December 31, 2026. The annual indebtedness for the 2013 Public Improvements Cost in any given year is the sum of the Semi-Annual Installments for the Project Infrastructure Bonds for the year. 2. Semi-Annual Collection Costs may be increased or reduced as part of each Service Plan Update. If the Semi-Annual Collection Costs collected are less than the Semi-Annual Collection Costs paid or incurred, the deficit may be carried forward and added to the Semi-Annual Collection Costs for the next year or paid as Semi-Annual Administrative Costs. If the Semi-Annual Collection Costs collected exceed the Semi-Annual Collection Costs paid or incurred, the excess shall be carried forward to reduce the Semi-Annual Collection Costs for the next year. Semi-Annual Collection Costs shall be allocated pro rata among all Parcels with unpaid Assessments. 3. This exhibit includes no Delinquent Collection Costs. The actual amount of Delinquent Collection Costs attributable to a Parcel will, if not paid upon demand, be added to the Semi-Annual Installment for the Parcel as part of the Service Plan Update for the next year. If Delinquent Collection Costs remain unpaid, they will continue to be added to the Semi-Annual Installment for the Parcel as part of the Service Plan Update for the next year. 4. Semi-Annual Administrative Costs (up to the maximum amount determined by the additional interest authorized by Section 372.018(a) of the Act) are estimated and may be increased or reduced as part of each Service Plan Update. If the Semi-Annual Administrative Costs collected are not enough to pay the Semi-Annual Administrative Costs paid or incurred, the deficit may be carried forward and added to the Semi-Annual Administrative Costs for the next year. If the Semi-Annual Administrative Costs collected exceed the Semi-Annual Administrative Costs paid or incurred, the excess shall be carried forward to reduce the Semi-Annual Administration Costs for the next year. Semi-Annual Administrative Costs shall be allocated pro rata among all Parcels with unpaid Assessments. 185 Exhibit C-2 Service Plan: Five-Year Projection of Annual Indebtedness Related to Additional Facility Public Improvements1 Exhibit C-2 to The Colony SAP - Projection of Annual Indebtedness Related to Additional Facility Public Improvements Cost - Page 1 1775.016\1109210.1 2026 2027 2028 2029 2030 $593,849 $623,542 $ 654,719 $ 687,455 $ 721,828 _______________________________ 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 186 Exhibit C-3 to The Colony SAP - Projection of Annual Indebtedness Related to Annual Related Development Public Improvements Cost - Page 1 1775.016\1109210.1 Exhibit C-3 Service Plan: Five-Year Projection of Annual Indebtedness Related to Annual Related Development Public Improvements1 2026 2027 2028 2029 2030 $482,438 $506,560 $531,888 $558,482 $586,406 1 Costs shown do not include costs related to 90 days of operating costs or costs related to Direct Supplemental Services. See Exhibit D (Special Benefits Reports) for information about these costs. 187 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 1 1775.016\1109210.1 FORM OF NOTICE REQUIRED BY TEXAS PROPERTY CODE SECTION 5.014 Effective September 1, 2021, Texas Property Code §5.014 requires a seller of any real property located in a public improvement district to give notice TWICE to the purchaser of the purchaser's obligation to pay the PID assessment in the form required under Texas Property Code §5.014, as amended. Section 5.0141 of the Texas Property Code requires the "First Notice" below to be given to a prospective purchaser BEFORE the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. AT CLOSING, Section 5.0143 of the Texas Property Code requires a separate copy of the "Second Notice" below, with current information, to be executed by the seller and purchaser, acknowledged and recorded in the deed records of the county in which the property is located. FIRST NOTICE: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property described above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of a public improvement or services project (the “Authorized Improvements”) undertaken for the benefit of the property within “City of The Colony Public Improvement District No. 1” (the “District”) created under Subchapter A, Chapter 372, Local Government Code, as amended. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of The Colony, Texas. The exact amount of each annual installment will be approved each year by the City Council of The Colony, Texas in the Annual Service Plan Update for the District. More information about the assessments, including the amounts and due dates, may be obtained from the City of The Colony, Texas. YOUR FAILURE TO PAY ANY ASSESSMENT, OR ANY ANNUAL INSTALLMENT THEREOF, MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE OR IN A LIEN ON AND THE FORECLOSURE OF YOUR PROPERTY. 188 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 2 1775.016\1109210.1 The undersigned purchaser acknowledges receipt of this notice prior to the effective date of a binding contract for the purchase of the real property at the street address set forth above. [PURCHASER] By: Name: Date: [PURCHASER] By: Name: Date: The undersigned seller executes this notice pursuant to Texas Property Code Section 5.014(a-1), as amended, before the effective date of a binding contract for purchase of the real property at the address described above. [SELLER] By: Name: Date: 189 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 3 1775.016\1109210.1 SECOND NOTICE AFTER RECORDING RETURN TO: [INSERT SELLER NAME AND ADDRESS] NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENTS TO THE CITY OF THE COLONY, TEXAS CONCERNING THE PROPERTY AT: [INSERT STREET ADDRESS] As the purchaser of the real property described above, you are obligated to pay assessments to the City of The Colony, Texas for the costs of a portion of a public improvement or services project (the “Authorized Improvements”) undertaken for the benefit of the property within “City of The Colony Public Improvement District No. 1” (the “District”) created under Subchapter A, Chapter 372, Local Government Code, as amended. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS WHICH WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of The Colony, Texas. The exact amount of each annual installment will be approved each year by the City Council of The Colony, Texas in the Annual Service Plan Update for the District. More information about the assessments, including the amounts and due dates, may be obtained from the City of The Colony, Texas. YOUR FAILURE TO PAY ANY ASSESSMENT, OR ANY ANNUAL INSTALLMENT THEREOF, MAY RESULT IN PENALTIES AND INTEREST BEING ADDED TO WHAT YOU OWE OR IN A LIEN ON AND THE FORECLOSURE OF YOUR PROPERTY. The undersigned purchaser acknowledges receipt of this notice prior to the effective date of a binding contract for the purchase of the real property at the street address set forth above. [SIGNATURE PAGES FOLLOW] 190 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 4 1775.016\1109210.1 IN WITNESS WHEREOF, the undersigned parties have executed this notice at the closing of the purchase of the real property at the address described above and for the purposes stated therein. [PURCHASER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] [PURCHASER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] 191 Exhibit C-4 Exhibit C-4 to The Colony SAP – Form of Notice Required by Texas Property Code Section 5.014 - Page 5 1775.016\1109210.1 The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. [SELLER] By: Name: Date: STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me by ______________________, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _________________, 20____. __________________________________________ Notary Public, State of Texas [SEAL] 192 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 1 1775.016\1109210.1 Exhibit D Special Benefits Report The City of The Colony Public Improvement District No. 1 The Colony, Texas PREPARED BY: Jeremie Maurina, Executive Business Liaison DATED: September 1, 2026 193 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 2 1775.016\1109210.1 The Facility is expected to generate eight million customers each year. Given the traffic and security needs of the Facility, above those provided as part of the City's basic municipal services, one hundred percent (100%) of the Public Improvements for: (1) the enhanced traffic management services consisting of a portion of the salary for a dedicated signal technician (the "Enhanced Traffic Services") and (2) the enhanced police services consisting of the salaries of two (2) additional police officers, including benefits (the "Enhanced Police Services") are attributable to the Facility Property. The Facility Property is a single economic unit comprised of two tax parcels. The Public Improvements Costs consisting of the Enhanced Traffic Services and Enhanced Police Services are allocated to the two tax parcels based on acreage. In previous years, the City levied assessments related to traffic management system costs, traffic control equipment, and certain road and street improvements for the special benefit of property within the PID; however, there are no such improvements anticipated for the 2026-2026 fiscal year. During the development related to the Additional Facility Assessments and Related Development Assessments described in the 2018 Annual Service Plan Update, a series of "Enhanced Development Services" (now defined as "Direct Supplemental Services") were identified that provided specific benefits to several individual parcels. Due to the nature of these supplemental services and the scope they cover, they are not easily forecasted for inclusion in a budget. Instead, beginning with the 2019 Annual Service Plan Update, these costs have been estimated annually and directly assessed to the benefitted parcels (See Exhibit E for adjusted assessments for the current year). This provides a more accurate assessment and allows the costs of those services to be recovered from the properties that have directly benefited from them. The total estimated cost of these services is $13,140 for the 2026-27 assessment. Additionally, the City retains a reserve of an estimated 90 days of operating costs calculated based on the annual budget for the Public Improvements. The 90 days of operating costs are apportioned to the Facility Property, Waterfront Property and Related Development Property based on the percentages described below. Table D-1 below shows the 2026-27 Public Improvement Costs and Table D-2 below shows the special benefits analysis. The costs for the Enhanced Traffic Services and the Enhanced Police Services shown below are allocated 100% to the Facility Property. The costs for the Special Supplemental Services and Lake Maintenance are allocated on a per-acre basis to the Facility Property, the Waterfront Property and the Related Development Property such that the Facility Property is apportioned approximately 35.78 percent (107.47 Facility Property/300.3831 total acres); the Waterfront Property is apportioned approximately 5.46 percent (16.4145 Waterfront Property/300.3831 total acres); and the Related Development Property is apportioned approximately 58.76 percent (176.4986 Related Development Property/300.3831 total acres). [Remainder of page left blank intentionally.] 194 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 3 1775.016\1109210.1 Table D-1 2026-27 Public Improvement Costs Description of Public Improvements Total Estimated Cost Cost Allocated to Facility Property Cost Allocated to Waterfront Property Cost Allocated to Related Development Property Enhanced Traffic Services $50,466.08 $50,466.08 $0 $0 Enhanced Police Services $274,621.76 $274,621.76 $0 $0 Special Supplemental Services $722,200.00 $258,386.16 $39,464.78 $424,349.06 Lake Maintenance $29,000.00 $10,375.52 $1,584.71 $17,039.77 PUBLIC IMPROVEMENT TOTALS $1,076,287.84 $593,849.52 $41,049.49 441,388.84 90 Days Operating Cost Reserve $265,386.04 $94,948.88 $14,502.08 $155,935.09 Direct Supplemental Services $13,140 $270 $540 $12,330 TOTALS1 $1,354,813.89 $689,068.40 $56,091.57 $609,653.92 1 Costs shown are before any excess or deficit from the previous year is applied. 195 Exhibit D to The Colony SAP – Facility Public Improvements Cost Special Benefit Analysis - Page 4 1775.016\1109210.1 Table D-2 2026-27 Public Improvement Costs Benefit Allocation Public Improvements TOTALS Special Benefit to Facility Property Special Benefit to Waterfront Property Special Benefit to Related Development Property Enhanced Traffic Services $50,466.08 100% 0 0% Enhanced Police Services $274,621.76 Special Supplemental Services 722,200.00 35.78% 5.46% 58.76% Lake Maintenance $29,000.00 35.78% 5.46% 58.76% TOTALS $1,076,287.84 90 Days Operating Cost Reserve $261,337.16 35.78% 5.46% 58.76% Direct Supplemental Services $17,910.00 2% 4% 94% TOTALS $1,354,813.89 196 Exhibit E Assessment Roll Exhibit E to The Colony SAP – Assessment Roll - Page 1 1775.016\1109210.1 Tax Parcel ID Legal Description Acreage % of Section Assessment #657618 GRANDSCAPE ADDITION BLK A LOT 1R 81.9900 76.30%$425,807.58 #657619 GRANDSCAPE ADDITION BLK A LOT 2 25.4800 23.70%$132,244.15 #957987 GRANDSCAPE ADDITION PHASE II BLK D LOT 2R1 13.7740 82.66%$29,823.44 #704832 GRANDSCAPE ADDITION PHASE II BLK D LOT 3 0.6750 4.05%$1,461.51 #957988 GRANDSCAPE ADDITION PHASE II BLK D LOT 4R 0.5060 3.29%$1,185.59 #957989 GRANDSCAPE ADDITION PHASE II BLK D LOT 5R1 0.2976 1.79%$644.36 #957990 GRANDSCAPE ADDITION PHASE II BLK D LOT 5R2 0.2717 1.63%$588.28 #957991 GRANDSCAPE ADDITION PHASE II BLK D LOT 6R1 0.4838 2.90%$1,047.52 #957992 GRANDSCAPE ADDITION PHASE II BLK D LOT 6R2 0.4064 3.69%$1,329.94 #692390 GRANDSCAPE ADDITION BLK A LOT 6R 2.0150 1.11%$4,362.88 #692391 GRANDSCAPE ADDITION BLK A LOT 7R 2.1050 1.16%$4,557.74 #674231 GRANDSCAPE ADDITION PHASE II BLK B LOT 1R1 3.3860 1.86%$7,331.36 #692389 GRANDSCAPE ADDITION BLK B LOT 4R 1.9250 1.06%$4,168.01 #692387 GRANDSCAPE ADDITION BLK B LOT 2R 1.9030 1.04%$4,120.37 #692388 GRANDSCAPE ADDITION BLK B LOT 3R1-X 0.3010 0.17%$651.72 #692379 GRANDSCAPE ADDITION BLK J LOT 1R1 2.9310 1.61%$6,346.20 #692380 GRANDSCAPE ADDITION BLK J LOT 3X 0.2040 0.11%$441.70 #653844 GRANDSCAPE ADDITION PHASE II BLK A LOT 9 2.6830 1.47%$5,809.23 #653843 GRANDSCAPE ADDITION PHASE II BLK A LOT 8R 2.9440 1.62%$6,374.34 #748393 GRANDSCAPE MASTER CONDOMINIUMS UNT MASTER UNIT PLUS 92.5 79.0894 43.89%$173,134.15 #753491 GRANDSCAPE MASTER CONDOMINIUMS UNT MF (MIXED USE) PLUS 6.5.8389 3.20%$12,642.35 #753492 GRANDSCAPE MASTER CONDOMINIUMS UNT A (MIXED USE) PLUS .75 1.5738 0.86%$3,407.50 #674218 GRANDSCAPE ADDITION PHASE II BLK A LOT 3R 3.6450 3.46%$13,652.15 #732382 GRANDSCAPE ADDITION PHASE II BLK H LOT 2 8.5510 4.74%$18,694.61 #1004631 GRANDSCAPE ADDITION PHASE II BLK E LOT 1R 1.0290 0.56%$2,227.99 #1003642 GRANDSCAPE ADDITION PHASE II BLK H LOT 4R1 3.5810 2.01%$7,933.58 #1015683 GRANDSCAPE ADDITION PHASE II BLK H LOT 4R2-1R 10.3500 5.98%$23,579.81 #1004632 GRANDSCAPE ADDITION PHASE II BLK E LOT 2 2.9590 1.62%$6,406.82 #1082237 A0174A BBB & C,TR 1B, 7.7489 7.7489 4.25%$16,777.91 #275371 A0174A BBB & C, TR 1A, 23.59 ACRES 23.5900 13.72%$54,137.03 #692381 GRANDSCAPE ADDITION BLK J LOT 2 1.3430 0.74%$2,907.86 #674225 GRANDSCAPE ADDITION PHASE II BLK C LOT 2R 3.9387 2.16%$8,528.07 #1004634 GRANDSCAPE ADDITION PHASE II BLK E LOT 4 1.6380 0.92%$3,636.60 #1004633 GRANDSCAPE ADDITION PHASE II BLK E LOT 3 1.2260 0.67%$2,654.53 Grand Total $988,616.89 Facility Property ($558,051.73) Waterfront Property ($36,080.65) Related Development Property ($394,484.50) 1. Outstanding 2013 Facility Public Improvement Assessment levied against Facility Property consisting of Tax Parcel No. 657618 and 657619 is $68,190,642.53. 2. Assessment Roll for Additional Facility Public Improvements, Waterfront Public Improvements and Related Development Public Improvements as levied by the 2026 Assessment Ordinance: 197 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 1 1775.016\1109210.1 198 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 2 1775.016\1109210.1 199 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 3 1775.016\1109210.1 200 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 4 1775.016\1109210.1 201 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 5 1775.016\1109210.1 202 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 6 1775.016\1109210.1 203 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 7 1775.016\1109210.1 204 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 8 1775.016\1109210.1 205 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 9 1775.016\1109210.1 206 E-1 Bond Debt Service Schedules for Calculating Debt Service Shortfalls Exhibit E-1 to The Colony SAP – Bond Debt Service Schedules for Calculating Debt Service Shortfalls - Page 10 1775.016\1109210.1 207 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 1 1775.016\1109210.1 Below is a summary of prior legislative actions of the City Council for the District, including the levy of all Assessments against benefitted property within the District. This Exhibit F shall be updated with each Annual Service Plan Update. Items marked with an (**) were validated as part of the matter styled Ex Parte City of The Colony in the 53rd District Court of Travis County, Texas (the "Bond Validation Suit") for which a Final Judgment was issued on January 18, 2012. September 17, 2012**  Landowner petition ("PID Creation Petition") for the establishment of the District is submitted to the City and filed with the City Secretary. September 18, 2012  City Council approved Resolution No. 2012-067 accepting the PID Creation Petition and calling a public hearing on the creation of the District for October 8, 2012. September 21, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing Regarding the Proposed Establishment of City of The Colony Public Improvement District No. 1" is mailed to "Property Owners" as required by the Act. September 22, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing Regarding the Proposed Establishment of City of The Colony Public Improvement District No. 1" is published in the Denton Record Chronicle as required by the Act. September 26, 2012**  City Council by motion accepts and approves PID Creation Petition, waiver of the 15-day notice for the public hearing on the creation of the District to be held on October 8, 2012, and waiver of the 20-day protest period for the commencement of construction of the Authorized Improvements. October 8, 2012**  After considering all written and documentary evidence presented at the public hearing described above, City Council approved Resolution No. 2012-073 authorizing the creation of the District. October 9, 2012**  Publication of Resolution No. 2012-073 authorizing the creation of the District as required by the Act. December 11, 2012  City Council approved Resolution No. 2012-100 accepting a preliminary service and assessment plan, proposed assessment roll and proposed reimbursement agreement for the District and calling a public hearing ("2013 Assessment Hearing") for January 15, 2013 to consider an ordinance levying assessments on benefitted property within the District and directing publication and mailing of statutory notices for such hearing. December 17, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing on Assessment Ordinance for the City of The Colony Public Improvement District No. 1" is mailed to "Property Owners" as required by the Act. December 19, 2012**  Notice of "City of The Colony, Texas, Notice of Public Hearing on Assessment Ordinance for the City of The Colony Public Improvement District No. 1" is published in the Denton Record Chronicle as required by the Act. January 15, 2013  City Council conducted the 2013 Assessment Public Hearing and approved a motion to continue the 2013 Assessment Public Hearing until February 7, 2013. 208 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 2 1775.016\1109210.1 February 7, 2013**  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2013-1992, recorded as Instrument No. 2013-20487 in the real property records of Denton County, Texas (the “2013 Assessment Ordinance”), which (i) approved and accepted the “City of The Colony, Texas, Public Improvement District No. 1 Service and Assessment Plan” dated February 7, 2013 (the “Original Service and Assessment Plan”), (ii) levied the 2013 Facility Public Improvement Assessment against the Facility Property for the 2013 Public Improvements as shown on the Assessment Roll attached as Exhibit G to the Original Service and Assessment Plan, and (iii) deferred levying the 2013 Related Development Deferred Assessment for the portion of the 2013 Public Improvements Cost that specially benefits the Related Development Property.  City Council approved Resolution No 2013-008 approving the 2013 LGC Sales Tax Bonds, the 2013A LGC Sales Tax Bonds, and the 2013 LGC Tax Bonds and approving the 2013 LGC Sales Tax Bonds Reimbursement Agreement and the 2013 LGC Tax Bonds Reimbursement Agreement.  City Council approved Resolution No. 2013-009 approving the 2013 Type A Bonds and approving the 2013 Type A Bonds Reimbursement Agreement.  City Council approved Resolution No. 2013-010 approving the 2013 Type B Bonds and approving the 2013 Type B Bonds Reimbursement Agreement. April 21, 2015  City Council approved Resolution No. 2015-042 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2015 Annual Service and Assessment Plan, dated March 17, 2015, including proposed assessment roll for the District and calling a public hearing ("2015 Assessment Public Hearing") for May 5, 2015 to consider an ordinance levying assessments in the aggregate amount of $1,379,301.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. May 5, 2015  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2015 Assessment Public Hearing.  After considering all written and documentary evidence presented at the duly noticed public hearing described above, the City Council approved Ordinance No. 2015-2136 (the "2015 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2015 Annual Service and Assessment Plan, dated May 5, 2015 (the "2015 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,379,301 consisting of: (i) $959,247.96 against the Facility Property for costs of Additional Facility Public Improvements (the "2015 Facility Assessment"), (ii) $369,143.53 for Boardwalk Public Improvement Costs (as defined in the 2015 Annual Service Plan Update) and $50,909.51 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $420,053.04 amount is referred to as the "2015 Related Development Assessment") August 18, 2015  City Council approved Resolution No. 2015-066 accepting the City of The Colony Public Improvement District No. 1 Preliminary 20152016 Annual Service and Assessment Plan, dated August 13, 2015, including proposed assessment roll for the District, and calling a public hearing ("2015-16 Assessment Public Hearing") for September 1, 2015 to consider an ordinance levying assessments in the aggregate amount of $1,454,992.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 209 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 3 1775.016\1109210.1 September 15, 2015  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2015-16 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2015-2160 (the "2015 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2015/2016 Annual Service and Assessment Plan, dated August 13, 2015 and amended September 14, 2015 (the "2015/2016 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,454,992 consisting of: (i) $1,218,234.83 against the Facility Property for costs of Additional Facility Public Improvements (the "2015 Facility Assessment"), (ii) $148,428.69 for Boardwalk Public Improvement Costs (as defined in the 2015 Annual Service Plan Update) and $88,328.48 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $236,757.17 amount is referred to as the "2015 Related Development Assessment") August 16, 2016  City Council approved Resolution No. 2016-049 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2016/2017 Annual Service and Assessment Plan, dated August 10, 2016, including proposed assessment roll for the District, and calling a public hearing ("2016 Assessment Public Hearing") for September 6, 2016 to consider an ordinance levying assessments in the aggregate amount of $1,162,836.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 6, 2016  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2016 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2016-2232 (the "2016 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2016/2017 Annual Service and Assessment Plan, dated August 10, 2016 and amended August 29, 2016 (the "2016 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,162,836.00 consisting of: (i) $875,155.64 against the Facility Property for costs of Additional Facility Public Improvements (the "2016 Facility Assessment"), (ii) $120,673.24 for Boardwalk Public Improvement Costs (as defined in the 2016 Annual Service Plan Update) and $167,007.12 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $287,681.36 amount is referred to as the "2016 Related Development Assessment"). September 5, 2017  City Council approved Resolution No. 2017-078 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2017/2018 Annual Service and Assessment Plan, dated August 16, 2017, including proposed assessment roll for the District, and calling a public hearing ("2017 Assessment Public Hearing") for September 19, 2017 to consider an ordinance levying assessments in the aggregate amount of $1,531,458.00 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 210 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 4 1775.016\1109210.1 September 19, 2017  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2017 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2017-2283 (the "2017 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2017/2018 Annual Service and Assessment Plan, dated August 16, 2017 and amended September 11, 2017 (the "2017 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,531,458 consisting of: (i) $658,465 against the Facility Property for costs of Additional Facility Public Improvements (the "2017 Facility Assessment"), (ii) $402,978 for Waterfront Public Improvement Costs (as defined in the 2017 Annual Service Plan Update) and $470,015 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $872,993 amount is referred to as the "2017 Related Development Assessment"). August 21, 2018  City Council approved Resolution No. 2018-071 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2018/2019 Annual Service and Assessment Plan, dated August 16, 2018, including proposed assessment roll for the District, and calling a public hearing ("2018 Assessment Public Hearing") for September 18, 2018 to consider an ordinance levying assessments in the aggregate amount of $1,497,805.98 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 18, 2018  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2018 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2018-2235 (the "2018 Assessment Ordinance") which approved the City of The Colony Public Improvement District No.1 2018/2019 Annual Service and Assessment Plan, dated September 12, 2018 (the "2018 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,497,805.98 consisting of: (i) $810,379.62 against the Facility Property for costs of Additional Facility Public Improvements (the "2018 Facility Assessment"), (ii) $83,293.66 for Waterfront Public Improvement Costs (as defined in the 2018 Annual Service Plan Update) and $604,132.70 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $687,426.36 amount is referred to as the "2018 Related Development Assessment"). August 20, 2019  City Council approved Resolution No. 2019-065 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2019/2020 Annual Service and Assessment Plan, dated August 15, 2019, including proposed assessment roll for the District, and calling a public hearing ("2019 Assessment Public Hearing") for September 17, 2019 to consider an ordinance levying assessments in the aggregate amount of $1,061,109.02 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 17, 2019  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2019 Assessment Public Hearing. 211 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 5 1775.016\1109210.1  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2019-2376 (the "2019 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2019/2020 Annual Service and Assessment Plan, dated September 17, 2019 (the "2019 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,061,109.02 consisting of: (i) $570,667.99 against the Facility Property for costs of Additional Facility Public Improvements (the "2019 Facility Assessment"), (ii) $49,965.50 for Waterfront Public Improvement Costs (as defined in the 2019 Annual Service Plan Update) and $440,475.53 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $490,441.03 amount is referred to as the "2019 Related Development Assessment"). August 5, 2020  City Council approved Ordinance No. 2020-2407 accepting the City of The Colony Public Improvement District No. 1 Preliminary 2020/2021 Annual Service and Assessment Plan, dated August 13, 2020, including proposed assessment roll for the District, and calling a public hearing ("2020 Assessment Public Hearing") for September 15, 2020 to consider an ordinance levying assessments in the aggregate amount of $1,061,109.02 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 15, 2020  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2020 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2020-2407 (the "2020 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 2020/2021 Annual Service and Assessment Plan, dated September 15, 2020 (the "2020 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,061,109.02 consisting of: (i) $570,667.99 against the Facility Property for costs of Additional Facility Public Improvements (the "2020 Facility Assessment"), (ii) $49,965.50 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2020 Assessment Ordinance) and $440,475.53 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $490,441.03 amount is referred to as the "2020 Related Development Assessment"). January 19, 2021  City Council approved Ordinance No. 2021-2430 approving an Approving an Amended and Restated Service and Assessment Plan for the District, Including Assessment Roll for The City of The Colony Public Improvement District No. 1.  City Council approved Resolution No. 2021-006 approving and Consenting to The Colony Local Development Corporation Tax Increment Contract Revenue Refunding Bonds (Nebraska Furniture Mart Texas Project) Taxable Series 2021. August 17, 2021  City Council approved Resolution No. 2021-053 accepting the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2021 to September 30, 2022), dated August 13, 2021, including proposed assessment roll for the District, and calling a public hearing ("2021 Assessment Public Hearing") for September 7, 2021 to consider an ordinance levying assessments in the aggregate amount of $902,327on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 212 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 6 1775.016\1109210.1 September 7, 2021  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2021 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2021-2449 (the "2021 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2021 to September 30, 2022), dated September 7, 2021 (the "2021 Annual Service Plan Update") and levied Assessments in the aggregate amount of $902,327 consisting of: (i) $535,879.94 against the Facility Property for costs of Additional Facility Public Improvements (the "2021 Facility Assessment"), (ii) $41,034.82 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2021 Assessment Ordinance) and $325,412.13 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $366,446.95 amount is referred to as the "2021 Related Development Assessment"). The 2021 Assessment Ordinance was recorded as Instrument No. 168472 on September 14th, 2021 in the Real Property Records of Denton County. August 16, 2022  City Council approved Resolution No. 2022-054 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2022 to September 30, 2023), dated August 14th, 2022, including proposed assessment roll for the District, and calling a public hearing ("2022 Assessment Public Hearing") for September 6, 2022 to consider an ordinance levying assessments in the aggregate amount of $1,304,422 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. October 18, 2022  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2022 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2022-2491 (the "2022 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2022 to September 30, 2023), dated August 14, 2022 (the "2022 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,304,421.76 consisting of: (i) $731,985.36 against the Facility Property for costs of Additional Facility Public Improvements (the "2022 Facility Assessment"), (ii) $68,245.18 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2022 Assessment Ordinance) and $504,191.22 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $572,436.40 amount is referred to as the "2022 Related Development Assessment"). The 2022 Assessment Ordinance was recorded as Instrument No. 149037 on October 21st, 2022 in the Real Property Records of Denton County. August 15, 2023  City Council approved Resolution No. 2023-057 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2023 to September 30, 2024), dated August 15, 2023, including proposed assessment roll for the District, and calling a public hearing ("2023 Assessment Public Hearing") for September 5th, 2023 to consider an ordinance levying assessments in the aggregate amount of $1,335,447 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 213 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 7 1775.016\1109210.1 September 19, 2023  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2023 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2023-2535 (the "2023 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2023 to September 30, 2024), dated September 19, 2023 (the "2023 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,335,447 consisting of: (i) $691,853.18 against the Facility Property for costs of Additional Facility Public Improvements (the "2023 Facility Assessment"), (ii) $61,601.36 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2023 Assessment Ordinance) and $581,992.92 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $643,594.28 amount is referred to as the "2023 Related Development Assessment"). The 2023 Assessment Ordinance was recorded as Instrument No. 101705 on September 20th, 2023 in the Real Property Records of Denton County. September 3, 2024  City Council approved Resolution No. 2024-065 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2024 to September 30, 2025), dated September 3rd , 2024, including proposed assessment roll for the District, and calling a public hearing ("2024 Assessment Public Hearing") for September 17th, 2024 to consider an ordinance levying assessments in the aggregate amount of $1,100,261 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 17, 2024  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2024 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2024-2578 (the "2024 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2024 to September 30, 2025), dated September 19, 2024 (the "2024 Annual Service Plan Update") and levied Assessments in the aggregate amount of $1,100,261 consisting of: (i) $613,682.54 against the Facility Property for costs of Additional Facility Public Improvements (the "2024 Facility Assessment"), (ii) $47,719.48 for Waterfront Public Improvement Costs (as shown in Exhibit B of the 2024 Assessment Ordinance) and $438,858.56 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $486,578.04 amount is referred to as the "2024 Related Development Assessment"). The 2024 Assessment Ordinance was recorded as Instrument No. 101428 on September 19, 2024 in the Real Property Records of Denton County. August 19, 2025  City Council approved Resolution No. 2025-092 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2025 to September 30, 2026), dated August 19, 2025, including proposed assessment roll for the District, and calling a public hearing ("2025 Assessment Public Hearing") for September 16, 2025 to consider an ordinance levying assessments in the aggregate amount of $975,272.51 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. 214 Exhibit F Chronological History of City Council Legislative Actions for the District Exhibit F to The Colony SAP –- Chronological History of City Council Legislative Actions for the District - Page 8 1775.016\1109210.1 September 16, 2025  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2025 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2025-2623 (the "2025 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2025 to September 30, 2026), dated August 19, 2025 (the "2025 Annual Service Plan Update") and levied Assessments in the aggregate amount of $975,272.51 consisting of: (i) $583,969.62 against the Facility Property for costs of Additional Facility Public Improvements (the "2025 Facility Assessment"), (ii) $40,452.38 for Waterfront Public Improvement Costs (as shown in Exhibit C of the 2025 Assessment Ordinance) and $350,850.51 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $391,302.89 amount is referred to as the "2025 Related Development Assessment"). The 2025 Assessment Ordinance was recorded as Instrument No. 104293 on September 17, 2025 in the Real Property Records of Denton County. September 1, 2026  City Council approved Resolution No. 2026-061 accepting the City of The Colony Public Improvement District No. 1 Preliminary Annual Service and Assessment Plan Update (Assessment Year October 1, 2026 to September 30, 2027), dated September 1, 2026, including proposed assessment roll for the District, and calling a public hearing ("2026 Assessment Public Hearing") for September 15, 2026 to consider an ordinance levying assessments in the aggregate amount of $988,616.88 on benefitted property within the District, and directing publication and mailing of statutory notices for such hearing. September 15, 2026  After notice was properly mailed and published and required by the PID Act, the City Council conducted the 2026 Assessment Public Hearing.  After considering all written and documentary evidence presented at the public hearing described above, the City Council approved Ordinance No. 2026-____ (the "2026 Assessment Ordinance") which approved the City of The Colony Public Improvement District No. 1 Annual Service and Assessment Plan Update (Assessment Year October 1, 2026 to September 30, 2027), dated September 15, 2026 (the "2026 Annual Service Plan Update") and levied Assessments in the aggregate amount of $988,616.88 consisting of: (i) $558,051.65 against the Facility Property for costs of Additional Facility Public Improvements (the "2026 Facility Assessment"), (ii) $36,080.65 for Waterfront Public Improvement Costs and $394,484.50 for Related Development Public Improvements Costs against the benefitted portions of the Related Development Property (collectively, the aggregate $430,565.15 amount is referred to as the "2026 Related Development Assessment"). The 2026 Assessment Ordinance was posted on the City's website on _________, 2026 and recorded as Instrument No. _______ in the Real Property Records of Denton County on or before September 22, 2026. 215 1775.016\1103404.1 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2026 - ________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, RELATED TO THE CITY OF THE COLONY PUBLIC IMPROVEMENT DISTRICT NO. 1; APPROVING A SERVICE AND ASSESSMENT PLAN UPDATE FOR FISCAL YEAR 2026-2027, INCLUDING THE ASSESSMENT ROLL FOR THE ANNUAL FACILITY PUBLIC IMPROVEMENTS, WATERFRONT PUBLIC IMPROVEMENTS, AND RELATED DEVELOPMENT PUBLIC IMPROVEMENTS; MAKING A FINDING OF SPECIAL BENEFIT TO THE FACILITY PROPERTY, WATERFRONT PROPERTY, AND RELATED DEVELOPMENT PROPERTY WITHIN THE DISTRICT; LEVYING SPECIAL ASSESSMENTS AND ESTABLISHING A LIEN AGAINST SUCH PROPERTY; PROVIDING FOR THE METHOD OF ASSESSMENT AND THE PAYMENT OF THE ASSESSMENTS IN ACCORDANCE WITH CHAPTER 372, TEXAS LOCAL GOVERNMENT CODE, AS AMENDED; PROVIDING PENALTIES FOR DELINQUENT SPECIAL ASSESSMENTS; RATIFYING AND CONFIRMING PRIOR ACTIONS RELATED TO THE DISTRICT; MAKING CERTAIN FINDINGS AND DETERMINATIONS RELATED TO THE DISTRICT AND SPECIAL ASSESSMENTS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Chapter 372 of the Texas Local Government Code (hereinafter referred to as the “Act”) authorizes the City of The Colony, Texas (the “City”), to create a public improvement district within the corporate limits and extraterritorial jurisdiction of the City; and WHEREAS, on Monday, September 17, 2012, a petition (the “Petition”) was submitted and filed with the City Secretary (the “City Secretary”) of the City pursuant to the Act requesting the creation of a public improvement district within the corporate limits of the City; and WHEREAS, the Petition contained the signatures of the owners of taxable property representing more than fifty percent of the appraised value of taxable real property liable for assessment within the proposed district, as determined by the then current ad valorem tax rolls of Denton Central Appraisal District and the signatures of the property owners who owned taxable real property that constituted more than fifty percent of the area of all taxable property within the proposed district that is liable for assessment; and WHEREAS, on Tuesday, September 18, 2012, the City Council for the City approved Resolution No. 2012-067, ordering a public hearing for October 8, 2012 (hereinafter referred to as the “Creation Public Hearing”), to consider a resolution creating the proposed district; and WHEREAS, on or before September 22, 2012, the City Secretary mailed and caused to be published notice of the Creation Public Hearing as required by the Act, which date was before the 15th day before the date of the Creation Public Hearing; and WHEREAS, after mailing, publishing, and otherwise providing all notices of the Creation Public Hearing as required by the Act and state law, the City Council condu cted the Creation 216 1775.016\1103404.1 Public Hearing on October 8, 2012, at the time and place and for the purposes set forth in the notices; and WHEREAS, the owner of the Property within the District appeared at the Creation Public Hearing by its representative and affirmed the owner’s request to create the District (defined below); and WHEREAS, no one appeared at the Creation Public Hearing in opposition to the creation of the District; and WHEREAS, after all persons having an interest in the District were given an opportunity to be heard in support of or in opposition to the creation of the City of The Colony, Texas Public Improvement District No. 1 (the “District”), the City Council closed the Creation Public Hearing on October 8, 2012, and by a majority vote of all members of the City Council adopted and approved Resolution No. 2012-073 creating the District to include the property described by metes and bounds on Exhibit B attached to such Resolution; and WHEREAS, on October 9, 2012, the City Secretary caused notice of Resolution No. 2012-073 to be published as required by the Act; whereupon the creation of the District took effect as provided by the Act; and WHEREAS, capitalized terms used in this Ordinance and not otherwise defined herein shall have the meanings assigned to them in the Service and Assessment Plan (defined below); and WHEREAS, on Tuesday, September 1, 2026, the City Council approved Resolution No. 2026-061 that: (i) determined the costs of certain public improvements, administration and operating costs, and supplemental services being provided for the special benefit of property within the District (collectively, the “2026-2027 Public Improvement Cost”); (ii) approved the City of The Colony Public Improvement District No. 1, Preliminary Annual Service and Assessment Plan (Assessment Year October 1, 2026 to September 30, 2027), dated September 1, 2026, including a proposed assessment roll for the 2026-2027 Public Improvement Cost, a service plan, an assessment plan, and a form of the notice to property owners required by the Texas Property Code, as amended (collectively, the “Preliminary 2026-2027 SAP Update”); (iii) called a public hearing (the “Assessment Hearing”) for September 1, 2026 to consider an ordinance levying assessments (the “2026-2027 Annual Assessments”); (iv) authorized and directed the City Secretary of the City to file the proposed assessment rolls for the 2026-2027 Annual Assessments and make such assessment roll available for public inspection; (v) authorized and directed publication of the notice of Assessment Hearing; and (vi) authorized and directed mailing of the notice of the Assessment Hearing to owners of property liable for assessment; and WHEREAS, the City Secretary filed the Assessment Roll (defined below) and made the same available for public inspection; and WHEREAS, the City Secretary published notice of the Assessment Hearing in the Dallas Morning News, a newspaper of general circulation within the City, before the 10th day before the date of the Assessment Hearing in accordance with the Act; and 217 1775.016\1103404.1 WHEREAS, the City Secretary mailed notice of the Assessment Hearing to the last known addresses of the owners of the property liable for the 2026-2027 Annual Assessments in accordance with the Act; and WHEREAS, the City Council opened the Assessment Hearing on September 15, 2026 at which all persons who appeared, or requested to appear, in person or by their attorney, were given the opportunity to contend for or contest the proposed assessment roll and the proposed 2026-2027 Annual Assessments, and to offer testimony pertinent to any issue presented on the amount of the 2026-2027 Annual Assessments, the allocation of the costs levied against the Facility Property, Waterfront Property, and Related Development Property, the purposes of the 2026-2027 Annual Assessments, the special benefits to the Facility Property, Waterfront Property, and Related Development Property, and the penalties and interest on delinquent 2026-2027 Annual Assessments; and WHEREAS, the City Council finds and determines that the City of The Colony Public Improvement District No. 1 Final Annual Service and Assessment Plan (Assessment Year October 1, 2026 to September 30, 2027), including the assessment roll attached thereto as Exhibit E (the “Assessment Roll”), dated September 15, 2026 (collectively, the “Final 2026-2027 SAP Update”, and together with the original service and assessment plan for the District and all prior updates and amendments, the “Service and Assessment Plan”), attached hereto as Exhibit A and incorporated herein for all purposes, should be approved and that the 2026-2027 Annual Assessments as shown on the Assessment Roll should be levied as provided in this Ordinance and the Service and Assessment Plan; and WHEREAS, the City Council further finds that there were no objections or evidence submitted to the City Secretary in opposition to the Service and Assessment Plan, the allocation of the 2026-2027 Public Improvement Cost consisting of the “2026-27 Additional Facility Public Improvements Cost,” the “2026-27 Waterfront Public Improvements Cost,” and the “2026-27 Related Development Public Improvements Cost,” (each as defined and described in the Final 2026-2027 SAP Update), the Assessment Roll, or the levy of the 2026-2027 Annual Assessments against the Facility Property and Related Development Property, including the Waterfront Property; and WHEREAS, the City Council closed the Assessment Hearing, and, after considering all written and documentary evidence presented at the Assessment Hearing, including all written comments and statements filed with the City, determined to proceed with the adoption of this Ordinance in conformity with the requirements of the Act. NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THAT: SECTION 1 Recitals. The recitals set forth in the WHEREAS clauses of this Ordinance are true and correct, are part of this Ordinance for all purposes, and constitute findings and determinations of the City Council acting in its discretionary, legislative capacity. SECTION 2 Ratification and Confirmation. The City Council has investigated and determined and hereby ratifies and confirms that: 2.1 The matters set forth in the Petition are true and correct; 2.2 The Petition complies with all requirements of the Act and is sufficient under the 218 1775.016\1103404.1 Act for all purposes including, but not limited to, the creation of the District; 2.3 The Additional Facility Public Improvements, Waterfront Public Improvements, and Related Development Public Improvements are authorized by the Act, promote the interests of the City, and confer a special benefit on the Facility Property, Waterfront Property, and the Related Development Property; 2.4 The form, content, timing, and method for providing notice of the Creation Public Hearing, and all matters related to the conduct of the Creation Public Hearing and the adoption of Resolution No. 2012-073 creating the District were in accordance with the Act, state law, the City Charter and the ordinances of the City; 2.5 Prior to conducting the Assessment Hearing and the adoption of this Ordinance, the City Council determined the total cost of the Additional Facility Public Improvements, Waterfront Public Improvements, and Related Development Public Improvements and the City Secretary filed the proposed Assessment Roll, along with the Preliminary 2026-2027 SAP Update, and made the same available for public inspection; 2.6 The form, content, timing, and method for providing the notice of the Assessment Hearing, and all matters related to the conduct of the Assessment Hearing were in accordance with the Act, state law, the City Charter, and the ordinances of the City; 2.7 The City Council has provided opportunity for the owners of property liable for the 2026-2027 Annual Assessments, and for the public at large, to appear, in person or by their representatives, and present objections to the creation of the District and the levy of the 2026-2027 Annual Assessments; and, no objections to the creation of the District or to the levy of the 2026-2027 Annual Assessments against the Facility Property, Waterfront Property, and the Related Development Property were presented at the Assessment Hearing; 2.8 All actions taken by the City Council in connection with the District have been taken and performed in accordance with the Act, state law, the City Charter, and the ordinances of the City and in a regular, proper, and valid manner. SECTION 3 Annual Update to Service and Assessment Plan. The Final 2026-2027 SAP Update, attached hereto as Exhibit A and incorporated as part of this Ordinance for all purposes, is hereby accepted and approved by the City Council as the “service plan,” “assessment plan,” and “assessment roll” for the District as required by Section 372.013 and 372.014 of the Act. The Service and Assessment Plan shall be further updated by the City Council no less frequently than annually as required by the Act and more frequently as required by the Service and Assessment Plan. A copy of the Final 2026-2027 SAP Update is available from the City Secretary during regular business hours and is posted on the City's website available at https://www.thecolonytx.gov/. SECTION 4 Assessment Roll and Method of Assessment. The Assessment Roll attached as Exhibit E to the Final 2026-2027 SAP Update is hereby accepted and approved pursuant to Section 372.016 of the Act as the assessment roll related to the 2026-2027 Annual Assessments for the 2026-2027 Public Improvement Cost. The method of apportioning the 2026- 2027 Public Improvement Cost is set forth in the Final 2026-2027 SAP Update. 219 1775.016\1103404.1 SECTION 5. Levy and Payment of Assessments; Delinquent Assessments. The City Council hereby levies the 2026-2027 Annual Assessments as “special assessments” under the Act against the Facility Property, Waterfront Property, and the Related Development Property in the amounts set forth in the Assessment Roll attached as Exhibit E to the Final 2026-2027 SAP Update, and such Assessment Roll is incorporated herein for all purposes. The levy of the 2026- 2027 Annual Assessments shall be effective on the date of the adoption of this Ordinance and shall be collected in accordance with the terms of the Service and Assessment Plan and the Act. The 2026-2027 Annual Assessments against the Facility Property, Waterfront Property, and the Related Development Property in the amounts set forth in the Assessment Roll are due and payable no later than January 31, 2027, and will be delinquent on February 1, 2027. Delinquent payment of the 2026-2027 Annual Assessments shall be subject to the penalties, interest, procedures, and foreclosure sales set forth in the Service and Assessment Plan, the Act, and as allowed by law. SECTION 6. Assessment Lien. The 2026-2027 Annual Assessments against the Facility Property, Waterfront Property, and the Related Development Property, together with interest, the expenses of collection, and reasonable attorney’s fees, if incurred, constitutes a lien against the Facility Property, Waterfront Property, and the Related Development Property (the “Assessment Lien”). The Assessment Lien against the Facility Property, Waterfront Property, and the Related Development Property is effective from the date of this Ordinance and “runs with the land.” The Assessment Lien priority is established by the Act and is the personal liability of and charge against each owner of the Facility Property, Waterfront Property, and the Related Development Property regardless of whether such owner is named in this Ordinance. The Assessment Lien against the Facility Property, Waterfront Property, and the Related Development Property may be enforced by the City, including foreclosure, in the same manner that an ad valorem tax lien is foreclosed. Any purchaser of the Facility Property, Waterfront Property, and the Related Development Property in foreclosure takes subject to the Assessment Lien against the Facility Property, Waterfront Property, and the Related Development Property created by the Special Assessment. SECTION 7. Collection and Deposit of Assessments. The City (or any other person, entity, or governmental agency permitted by law) shall bill, collect, and immediately deposit Assessment Revenue into a segregated operating account, the PID Operating Account for Annual Assessments, as provided in the 2026-2027 SAP Update. The PID Operating Account for Annual Assessments (and the sub-accounts thereof) has been created by the City and shall remain segregated from all other funds of the City. The City shall only use the funds in the PID Operating Account for Annual Assessments in accordance with the Service and Assessment Plan and the Act. To the extent not inconsistent with this Ordinance, and not inconsistent with the Act or the other laws governing public improvement districts, the provisions of the Texas Tax Code shall be applicable to the imposition and collection of the Assessments by the City. SECTION 8. Findings. Based on materials and information prepared by City staff and qualified professional consultants, on testimony provided throughout the process of creating the District and levying the 2026-2027 Annual Assessments including, but not limited to, testimony offered at the Creation Public Hearing and Assessment Hearing, and on other information, materials, evidence, and testimony available to or provided to the City Council for its consideration, the City Council, acting in its discretionary, legislative capacit y, hereby finds and determines that: 8.1 The Facility Property, Waterfront Property, and the Related Development Property are specially benefited by the Facility Public Improvements, Waterfront Public 220 1775.016\1103404.1 Improvements and Related Development Improvements, as applicable, in an amount that exceeds the 2026-2027 Annual Assessments levied against the Facility Property, Waterfront Property, and the Related Development Property; 8.2 The 2026-2027 Annual Assessments against the Facility Property, Waterfront Property, and the Related Development Property: (i) is just and equitable; (ii) produces substantial equality, considering the benefits received and the burdens imposed; (iii) results in imposing equal shares of the cost of the Public Improvements on property within the District that is similarly benefitted; and (iv) is authorized by and has been levied in accordance with the Act, state law, City Charter, and the ordinances of the City; 8.3 The Final 2026-2027 SAP Update includes a service plan that: (i) covers a period of at least five years, (ii) defines the annual indebtedness and projected costs of the Additional Facility Public Improvements, Waterfront Public Improvements, Related Development Public Improvements, and annual operation of the District, including Direct Supplemental Services, and (iii) includes a copy of the notice form required by Section 5.014 of the Texas Property Code, as amended; 8.4 The Final 2026-2027 SAP Update includes an assessment plan as required by the Act; 8.5 The interest and penalties on delinquent 2026-2027 Annual Assessments and procedures in connection with the imposition and collection of the 2026-2027 Annual Assessments should be approved and will expedite collection of such 2026-2027 Annual Assessments in a timely manner in order to provide the services and improvements needed and required for the District; 8.6 That all prerequisites to the fixing of the Assessment Lien against the Facility Property, Waterfront Property, and the Related Development Property, and to the personal liability of the real and true owner of the Facility Property, Waterfront Property, and the Related Development Property, whether named in this Ordinance or not, have been in all things regularly and duly performed in compliance with the Act and all other applicable laws, ordinances, regulations, procedures, and policies; and 8.7 The 2026-2027 Annual Assessments levied against the Facility Property, Waterfront Property, and the Related Development Property are in amounts required to pay the cost of the Public Improvements as described in the Final 2026-2027 SAP Update. SECTION 9. Filing in Real Property Records. The City Secretary is directed to cause a copy of this Ordinance, including the Final 2026-2027 SAP Update with the Assessment Roll, to be recorded in the real property records of Denton County, Texas, not later than the seventh day after the date the City Council adopts this Ordinance approving the Final 2026-2027 SAP Update. The City Secretary is further directed to similarly file each annual service plan update approved by the City Council in the future not later than the seventh day after the date that the City Council approves each annual service plan update in accordance with the Act. SECTION 10. Posting on City Website. The City Secretary is directed to post a copy of the Final 2026-2027 SAP Update, including a copy of the notice form required by Section 5.014 of the Texas Property Code, as amended, and the Assessment Roll, on the internet website maintained or used by the City for the purposes of Section 26.18, Texas Tax Code, as amended, 221 1775.016\1103404.1 not later than the seventh day after the date the City Council adopts th is Ordinance. The City Secretary is further directed to similarly post each annual service plan update approved by the City Council in the future not later than the seventh day after the date that the City Council approves annual service plan update in accordance with the Act. SECTION 11. Submission to Appraisal District. The City Council hereby directs the City Manager, or his or her designee, to cause a copy of the Assessment Roll, in the format required by Section 372.017(e) of the Act, to be submitted to the Denton Central Appraisal District not later than the seventh day after the date the City Council adopts this Ordinance approving the Final 2026-2027 SAP Update. SECTION 12. Supplemental Assessments Permitted. The City Council may make supplemental assessments to correct omissions or mistakes related to the cost of the Public Improvements and reassessments if the City Council determines that any special assessment is excessive. The City Council may also adjust the 2026-2027 Annual Assessments downward following each annual update to the Service and Assessment Plan. SECTION 13. Provisions of the Act Incorporated. This Ordinance incorporates, by reference, all provisions of the Act. In the event of any conflict between this Ordinance and the Act, the Act shall control. SECTION 14. Severability. If any provision, section, subsection, sentence, clause, or phrase of this Ordinance, or the application of the same to any person or set of circumstances is for any reason held to be unconstitutional, void, or invalid, the validity of the remaining portions of this Ordinance or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council that no portion her eof, or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness, or invalidity or any other portion hereof, and all provisions of this ordinance are declared to be severable for that purpose. SECTION 15. Effective Date. This Ordinance shall take effect, and the levy of the 2026-2027 Annual Assessments and the terms of the Final 2026-2027 SAP Update, shall be and become effective immediately upon passage and approval by the City Council. [Remainder of page left blank intentionally. Execution Page and Exhibit follow.] 222 1775.016\1103404.1 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 15TH DAY OF SEPTEMBER 2026. APPROVED: THE CITY OF THE COLONY, TEXAS Richard Boyer, Mayor ATTEST: Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney ACKNOWLEDGMENT STATE OF TEXAS § § COUNTY OF DENTON § This instrument was acknowledged before me on the 15th day of September, 2026, by Richard Boyer, Tina Stewart, and Jeffrey L. Moore, in his or her capacity as Mayor, City Secretary and City Attorney, respectively, of the City of The Colony, Texas, a Texas home-rule municipality, on behalf of said municipality. ____________________________________ Notary Public, State of Texas 223 1775.016\1103404.1 EXHIBIT A FINAL 2026-2027 SAP UPDATE 224 Agenda Item No: 5.5 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: General Admin Item Type: Ordinance Agenda Section: regular agenda items Suggested Action: Discuss and consider approving an ordinance amending the Code of Ordinances Chapter 18 by adding a new article VII Sections 18-130 to 18-133 entitled "Automobile Fatality Memorial Marker" by establishing regulations for the placement of automobile fatality memorial markers on city streets within the City of The Colony. (Perez) Background: Attachments: Ord. 2026-xxx Street Memorial Marker.docx 225 CITY OF THE COLONY, TEXAS ORDINANCE NO. 2026 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, AMENDING THE CODE OF ORDINANCES BY AMENDING CHAPTER 18, BY ADDING A NEW ARTICLE VII, SECTIONS 18-130 TO 18-133, ENTITLED “AUTOMOBILE FATALITY MEMORIAL MARKER” BY ESTABLISHING REGULATIONS FOR THE PLACEMENT OF AUTOMOBILE FATALITY MEMORIAL MARKERS ON CITY STREETS WITHIN THE CITY OF THE COLONY, TEXAS ; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING A PENALTY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Section 311.001 of the Texas Transportation Code provides that a home-rule municipality has exclusive control over and under the public highways, streets, and alleys of the City, and may control, regulate, or remove an encroachment or obstruction on a public street or alley of the City; and WHEREAS, the City Council of the City of The Colony, Texas, has discussed and considered such revisions and has determined that it is in the best interest of the City to amend the current Chapter 18, by adding a new Article VII, Sections 18-130 to 13-133 to address Automobile Fatality Memorial Markers within the City of The Colony, Texas; and WHEREAS, the City Council of the City of The Colony, Texas, has determined that the following regulation is necessary in order to protect public health, safety, and welfare of the citizens of the City of The Colony, Texas. NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS: SECTION 1. The findings set forth above are incorporated into the body of this Ordinance as if fully set forth herein. SECTION 2. That the Code of Ordinances of the City of The Colony, Texas be, and the same is, hereby amended by amending Chapter 18, by adding a new Article VII, Sections 18-130 to 18-133, entitled “Automobile Fatality Memorial Marker,” which shall read as follows: “ARTICLE VII.- AUTOMOBILE FATALITY MEMORIAL MARKER Sec. 18-130. Purpose. The purpose of this Article is to: (a) To allow the installment of a memorial marker for an individual(s) who lost their life as a result of an automobile accident occurring on a city maintained right of way such as a street, sidewalk or alley. 226 (b) Requests and installation of memorial markers on state or federally maintained rights of way should follow the process defined by those jurisdictions. Sec. 18-131. Qualification, Application and Request. (a) Markers are limited to traffic-related fatalities occurring on city-maintained rights of way within City limits. (b) The request to place a marker can be submitted by the victim's family on a form provided by the City. (c)| The request may be submitted by someone other than a family member so as long the request includes written permission from the family. (d) No more than one marker will be allowed per victim or accident. Sec. 18-132. Memorial Marker Design and Placement. (a) Approved memorial markers will contain the victim's name and date of birth. (b) Memorial markers will consist of a MUTCD (Texas Manual on Uniform Traffic Control Devices) compliant pole sign installed and maintained by the City. (c) Placement and Time Frame. (1) In conjunction with the memorial marker requestor(s), the City Manager or designee will determine the safest placement of the marker to avoid traffic interference. (2) Memorial marker signs once installed will remain in place for a period of two (2) years and provided to the family of the victim once removed. Sec 18-133. Unauthorized Memorial Placement. The City may remove any unauthorized memorial installed in City maintained right of way consistent with the City’s Code of Ordinances, as amended.” SECTION 3. It is hereby declared to be the intention of the City Council that the phrases, clauses, sentences, paragraphs and sections of this Ordinance are severable, and if any phrase, clause, sentence, paragraph or section of this Ordinance shall be declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs and sections of this Ordinance, since the same would have been enacted by the City Council without the incorporation of this Ordinance of any such unconstitutional phrase, clause, sentence, paragraph or section. 227 SECTION 4. That all provisions of the Ordinances of the City of The Colony, Texas, in conflict with the provisions of this Ordinance be, and the same are hereby amended, repealed, and all other provisions of the Ordinances of the City not in conflict with the provisions of this Ordinance shall remain in full force and effect. SECTION 5. Any person, firm, or corporation violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of The Colony, Texas, shall be punished by a fine not to exceed the sum of Five Hundred Dollars ($500.00) for each offense. Every day a violation occurs shall constitute a separate offense. SECTION 6. This Ordinance shall become effective immediately upon its passage and publication as required by law. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, THIS THE 15TH DAY OF SEPTEMBER 2026. Richard Boyer, Mayor City of The Colony, Texas ATTEST: ____ Tina Stewart, TRMC, CMC, City Secretary APPROVED AS TO FORM: Jeffrey L. Moore, City Attorney 228 Agenda Item No: 6.1 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: executive session Suggested Action: Council shall convene into a closed executive session pursuant to Section 551.071 of the Texas Government Code to receive legal advice from its attorney regarding pending litigation: TOCA Colony, LLC v. Blue Sky Sports Center, LP, and the City of The Colony, Texas. Background: 229 Agenda Item No: 6.2 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: executive session Suggested Action: Council shall convene into a closed executive session pursuant to Sections 551.072 and 551.087 of the Texas Government Code to deliberate regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and to deliberate the offer of a financial or other incentive to a business prospect(s). Background: 230 Agenda Item No: 7.1 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: executive session action Suggested Action: Any action as a result of executive session regarding pending litigation: TOCA Colony, LLC v. Blue Sky Sports Center, LP, and the City of The Colony, Texas. Background: 231 Agenda Item No: 7.2 CITY COUNCIL Agenda Item Report Meeting Date: September 15, 2026 Submitted By: Ana Alvarado Submitting Department: City Secretary Item Type: Discussion Agenda Section: executive session action Suggested Action: Any action as a result of executive session regarding purchase, exchange, lease or value of real property and commercial or financial information the city has received from a business prospect(s), and the offer of a financial or other incentive to a business prospect(s). Background: 232