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HomeMy WebLinkAboutResolution No. 05-02 CITY OF THE COLONY, TEXAS / RESOLUTION NO. 05"-Q ~ A RESOLUTION OF THE CITY OF THE COLONY, TEXAS, VOIDING THE PREVIOUSL Y APPROVED DEVELOPMENT AGREEMENT AND GROUND LEASE AGREEMENT WITH MARINE QUEST, INC. FOR THE SUBLEASE (OPERATION AND MAINTENANCE) OF HIDDEN COVE PARK AND APPROVING THE REVISED VERSIONS OF SAME ATTACHED HERETO AS EXHIBIT" A" 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 approves the revised versions of the Development Agreement and Ground lease agreement with Marine Quest, Inc. as attached hereto as Exhibit "A". Section 2. That the City Council hereby supercedes the prior approval of the Development Agreement and Ground Lease Agreement on December 17, 2004. Section 3. That a true and correct copy of the Agreements are attached hereto and incorporated herein. Section 4. 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 3rd day of January, 2005. ~~~ Joln Dillard, Mayor Cit., of The Colony, Texas kL~ bJ~~yJ istie Wilson, TRMC, City Secretary STATE OF TEXAS ~ ~ DEVELOPMENT AGREEMENT COUNTY OF DENTON ~ This agreement ("Agreement") is made by and between the City of The Colony, Texas (the "City"), and Marine Quest, Inc., Dwight Bosworth and Marcel Bosworth, (collectively referred to as the "Developer"), acting by and through their duly authorized representatives. R E C I TAL S: WHEREAS, the City desires to develop that certain portion of Hidden Cove Park (the "Property") as depicted in Exhibit "A", which is attached hereto and incorporated herein by reference; and WHEREAS, the Developer desires and has entered into a twenty-five (25) year Lease Agreement, which is attached hereto and incorporated herein as Exhibit "B," with the City to develop the Property under the terms and conditions provided herein; and WHEREAS, the Developer has prepared and submitted to the City a ten (10) year plan for the new development and maintenance improvements ("Project") to be performed in phases over the term of this Agreement; and WHEREAS, the parties desire to enter into an agreement pursuant to Texas Local Government Code, Section 212.071 et Seq., relating to the design and construction of the Project; NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein and other valuable consideration the sufficiency and receipt of which, are hereby acknowledged the City and the Developer agree as follows: Development Agreement - Page 1 69519 ARTICLE I TERM The term of this Agreement shall commence on the last date of execution of this Agreement (the "Effective Date") and shall continue until all parties have fully satisfied all terms and conditions of this Agreement, unless sooner terminated as provided herein. ARTICLE II DEFINITIONS 2.1 "Boat Dock(s) and/or Marina" shall mean a lead way or landing pier or wharf, boat slip constructed at and/or near the water as a place to receive boats and/or water crafts including a gangway or walking surface connected thereto as referenced in the Business Proposal, Exhibit B. 2.2 "Boat Slip" shall mean a portion of a pier, main pier, finger pier or float where a boat is berthed or moored, or used for embarking or disembarking. 2.3 "Bunkhouses and/or group cabins" shall mean group dormitories containing kitchen facilities and restroom facilities and sleeping accommodations. 2.4 "Cabins" shall mean a small building, one (1) to two (2) units, which is rustic in appearance, blends in with natural settings, and provides heating, air conditioning and sleeping accommodations, as well as any other improvements as may be permitted by the Corps. Cabins may be portable or permanent but must comply with the Corps elevation requirements. 2.5 "City" shall mean the City of The Colony, Texas. 2.6 "City Manager" shall mean the City of The Colony City Manager, or designee. Development Agreement - Page 2 69519 2.7 "Completion of Construction" shall mean: (i) substantially completed in accordance with the approved plans; and (ii) the Project has been accepted by the City. 2.8 "Construction Documents" shall mean the plans and specifications submitted for the design, installation and construction of the Project, and approved by the City. 2.9 "Developers" shall mean Marine Quest - Hidden Cove, L.P., a Texas Limited Partnership. 2.10 "Dry storage spaces" shall mean those areas currently existing or which may be constructed on the leased premises dedicated to the storage of equipment or goods for use on the premises, but shall not include any petroleum products for use of equipment or watercraft. 2.11 "Effective Date" shall mean the last date of execution of this Agreement. 2.12 "Force Majeure" shall mean strikes, riots, acts of God, shortages of labor or materials, war, governmental approvals, laws, regulations, or restrictions, or any other cause of any kind, whatsoever which is beyond the reasonable control of a party. 2.13 "Lease" shall mean the Lease of Hidden Cove Park by and between the City and Developer. 2.14 "Parking lot" shall mean the area used for the parking of motor vehicles. 2.15 "Project" shall mean the construction by the Developers of improvements to Hidden Cove Park Leased Premises to include, but not limited to, boat docks; boat slips; ship store; sand beach; Rustic Lodge/Conference/Nature Center with Development Agreement - Page 3 69519 deluxe pool; Lakeview restaurant/bar; shelter upgrades; cabins; dry storage spaces; bunkhouses or group cabins; and expansion ofRV sites. 2.16 "Restaurant/Bar" shall mean an area of the Rustic Lodge or separate facility dedicated to the preparation and sale of food and beverages for human consumption. 2.17 "Rustic Lodge/Conference Center/N ature Center" shall mean a structure consisting of rooms for rent for overnight accommodations for human occupancy, additional meeting or conference rooms, a general purpose meeting room, restaurant/bar facilities, kitchen facilities, deluxe swimming pool and deck; such facility shall also include an area to be used for purposes including, but not limited to, special events, performances, cultural arts and nature appreciation or preservation. 2.18 "Sand beach" shall mean a stretch of land constructed at or near the water which includes white sand placed along the shoreline with buoy delineating and separating the area in the water from boaters as generally depicted in the aerial overview shoreline site plan to Exhibit B as a place for use by patrols to access Lake Lewisville for recreational water activity. 2.19 "Shelter upgrades" shall mean improvements to existing screened shelters which shall include, but not be limited to, heating, air conditioning, sleeping accommodations and other improvements as permitted by the Corps as provided in Exhibit D to the Ground Lease. 2.20 "Ship store" shall mean a facility or improvement located on the boat dock where fuel petroleum products and equipment is sold for retail purposes. Development Agreement - Page 4 69519 ARTICLE III CONSIDERATION For and in consideration of the promises made herein, the Parties acknowledge the following: A. The City hereby relinquishes and has agreed to lease certain portions of Hidden Cove Park ("Leased Premises") to the Developer in order to enhance the amenities in the City for the enjoyment of its residents; and B. That the Developer has agreed to make a two hundred fifty thousand dollar ($250,000.00) donation to the City of The Colony within thirty (30) days after the Corps approves the plans for construction for the use and benefit of the Leased parklands from the United States Army Corp of Engineers; and C. That the Developer shall make certain improvements which shall be permanent fixtures, at its sole cost, to the Leased Premises as set forth herein; and D. That the Developer shall make and pay a sum of five thousand dollars ($5,000.00) annually by December 15t of each calendar year to the Lewisville Education Foundation ("LEF") to be used for scholarships for The Colony High School graduating seniors and/or teacher grants for programs benefiting schools and students in the City of The Colony, Texas. All criteria for such scholarships and/or grants shall be determined by the Developer's committee and submitted to LEF for assignment of the funds to qualifying recipients. Development Agreement - Page 5 69519 ARTICLE IV AGREEMENT 4.1 Proiect Construction. The Developer shall develop the project in accordance with its development proposal and as established in Exhibit "B", which is attached hereto and incorporated herein. Any and all new development must adhere to the items listed in Hidden Cove Park's 10-year development plan as identified in the Lake Lewisville Resource Document and Programmatic Environmental Assessment. Any new development, including new locations for development, which was not included in said documents may be subject to additional environmental assessments and other studies in order to obtain Corps approval and shall be done at the Developers' expense. Any mitigation required for all new development shall be at the Developers' expense. 4.1.1 Years one (1) through four (4): Within the first year of approval from the United States Army Corp of Engineers (hereinafter, "Corp") and City, the Developer shall, in accordance with and as depicted in Exhibit B, construct the following: A. One hundred and forty (140) 24' slips; One hundred (100) 30' slips; Seventy (70) 36' slips with pump outs; and Forty (40) 48' slips with pump outs, as depicted. B. 2000 square foot Ship Store with a fuel dock; C. Twenty (20) courtesy slips. D. Sandy beach shall be constructed within the first year. E. A resort Rustic Lodge/Conference/Nature Center with deluxe pool to be constructed and substantially complete with in the first two (2) years after approval by the Corp and the City. Development Agreement - Page 6 69519 F. Lakeview Restaurant/Bar shall be constructed and substantially complete early within the first two (2) years. G. Upgrade fifty percent (50%) of all shelters shall be completed within the first year. H. Upgrade remaining shelters within the second year. 1. Developer shall construct dry storage spaces as follows: (1) One hundred (100) additional dry storage spaces shall be constructed with the first year; (2) An additional one hundred (100) dry storage spaces shall be constructed with two (2) years; and (3) An additional two hundred (200) more dry storage spaces shall be constructed with years three (3) through (8). J. Developer shall expand Recreational Vehicle ("RV) pad sites by one hundred (100) units, as follows: (1) RV sites shall be expanded by twenty-five (25) in the first year; (2) RV sites shall be expanded by twenty-five (25) in the second year; (3) RV sites shall be expanded by twenty-five (25) in the third year; (4) RV sites shall be expanded by twenty-five (25) in the forth year; and (5) RV sites shall be expanded by fifty (50) in the years four (4) through eight (8). Development Agreement - Page 7 69519 K. Developer shall construct and substantially complete one (1) group bunk- house prior to the end of the second (2nd) year and a group bunk-house by the end ofthe third (3rd) year. Cabins shall be added to meet market demands. 4.1.2 Years four (4) through eight (8): A. Developer shall expand advertising plan and submit the same for approval by the City to include added amenities and attractions constructed in years one through four. B. Developer shall construct an additional two hundred (200) dry storage spaces. 4.1.3. Years 9 - 10: A. Developer shall refurbish beach as required. B. Developer shall conduct studies and survey plans for projected demands and growth for the future. 4.1.4 Water and Wastewater: A. Developer shall, at its cost, within sixty (60) days of execution of this Agreement, make a good faith application to transfer water and wastewater permits with Texas Commission on Environmental Quality ("TCEQ") for operation of existing systems to Developer. Developer shall construct and complete such infrastructure expansion of water and wastewater systems to accommodate additional amenities as needed. B. Wastewater system shall be properly maintained and tested weekly. Water and wastewater shall be subject to monthly testing. All water systems shall be in compliance with applicable state and federal laws and Development Agreement - Page 8 69519 regulations as well as with the guidelines and standards as set forth by TCEQ and/or other local agencies. Developer shall provide certified and licensed personnel to conduct all water and wastewater systems maintenance. 4.1.5 ADA Compliance: All buildings and facilities shall be constructed in accordance with the Americans with Disabilities Act and state law requirements for Building and Facilities, as provided on Exhibit "C", which is attached hereto and incorporated herein by reference as if set forth in full. 4.2 Maintenance and Maintenance Standards: A. Developer shall provide proper, good and workmanlike maintenance of all facilities, grounds, equipment, structures and amenities throughout the entire term of this Agreement and in compliance with the Lease. B. Developer shall diligently provide required maintenance of outdated roofs, outdated electrical, outdated plumbing, and perform all necessary upgrades. Roadways, parking lots and utility infrastructure shall be kept in good repair and shall be replaced and/or upgraded as needed. C. Docks and walkways shall be "reviewed" daily and inspected weekly. All docks and walkways shall be kept clean and clear of dirt, debris, spider webs, vegetation and all prohibited materials. Repairs shall be made as required to maintain compliance with this Agreement. D. Shoreline erosion areas shall be repaired and maintained to minimize loss of usable parkland and to protect against loss of buildings and structures. Development Agreement - Page 9 69519 Whenever possible, shoreline erosion shall be controlled by non structural measures that encourage the preservation of the natural environment are the preferred methods. The use of native and adoptive plants that are suited to the existing conditions can help ensure the long term viability of the non structural controls. In accordance with the Clean Texas Marina Guidelines, best management practices will be observed. All shoreline and erosion control constructed under this Agreement shall be done upon approval of the Corp and City. E. Grass shall be mowed weekly in day-use and camping areas and trees will be trimmed and treated for disease as needed. Hike/bike trail in primitive area shall be kept in good usable condition. Restrooms shall be kept clean and sanitary at all times. Campsites, shelters, beaches, pavilions, buildings and all public use areas shall be kept clean and properly maintained to provide a high quality experience for customers at all times. 4.3 Development Standards: A. All new development under this Agreement shall be designed and built with materials approved under the requirements of the U.S. Army Corps of Engineers ("US ACE"), state and local codes. B. All construction shall meet the standards outlined by the USACE Standard Operating Procedures Outgrant Management Directives, as well as all applicable state and local requirements, including but not limited to: (1) National Electrical Safety Code - NFPA 70 - 1999 Development Agreement - Page 10 69519 (2) Standard Specification for Construction of Highways, Streets, and Bridges, Texas State Department of Highways and Public Transportation (3) City of The Colony Ordinances (4) International Building Code 2000, International Plumbing Code 2000, International Fire Code 2000, International Mechanical Code 2000 (5) U.S. Department of Transportation (6) Americans with Disabilities Act (7) Clean Water Act (8) American National Standards Institute C. All design and construction of Improvements shall be in compliance with the USACE Construction and Maintenance Criteria for Commercial Docks, Marinas, and Public Parks, including floatation, walkways, handrails, anchorage, electrical, fire protection, fuel storage, refueling area, and battery storage area. D. Floatation elements of construction shall be encapsulated. Floatation shall provide a minimum freeboard of nine (9") inches, plus a 40 PSF (pounds per square foot) live load. E. All steel shall be galvanized. F. Walkways shall be a minimum of four feet (4') wide, with slip fingers no less than three feet (3') wide. Development Agreement - Page 11 69519 G. Decking materials shall be concrete or other material approved by the City. H. Wave attenuators shall be attractive and functional. "Tire" breakwaters shall be prohibited. 4.4 Employees: A. Developer agrees to employ the current City employees working at Hidden Cove Park as provided on the attached Exhibit "D." Such employees shall be offered the same base salary as they are currently receiving plus (+) benefits or cash equivalent that currently being paid by the City. B. Developer shall offer such employees a minimum one (1) year contract with the promise of no reduction in force or layoffs within such period. Developer reserves the right to terminate for "just cause" as defined by Marine Quest personnel policies and procedures. 4.5 Permitted Use of Existing Facilities: A. City shall be permitted to use the existing Hidden Cove Park Conference/Dining facility six (6) time per year for one (1) day events to sponsored by the City or The Colony Chamber of Commerce, provided however that such event shall not be in conflict with any prime time event previously scheduled. B. Upon sixty (60) day notice from the City to Developer, City shall be permitted to host four (4) special events per year at Hidden Cove Park. Development Agreement - Page 12 69519 C. Developer will permit JT's Snacks and Rentals to continue to utilize the existing desired facility to schedule and run at their discretion at the current agreement negotiated with the City. In the event the Developer wishes to use existing concession area for other purposes, Developer shall provide JT's with an alternate facility that is suitable for their operations and agreed upon by all parties. Developer shall allow JT's to construct a storage building for storage of their equipment and supplies in a mutually agreed upon location. Developer shall build courtesy slips for JT's to use/lease in conjunction with the development of the marina. 4.6 Permits: All applicable local, state and federal permits, licenses and certifications shall be kept current and maintained by the Developer during the term of this Agreement. Testing and reporting requirements and obligations shall be kept current, including, but not limited to, SPCC Plan, Clear Water Permits, SWP3, Certificate of Registration for Weights and Measures, TCEQ Storage Tank Registration, public water supply and wastewater system reports and permits as required by TCEQ. 4.7 Miscellaneous: A. Fee structures for entry, use of facilities, services and goods must be reasonable and comparable to rates charged at similar parks and facilities. B. City of The Colony residents shall receive a five dollar ($5.00) discount on an annual park pass. Development Agreement - Page 13 69519 C. Combination permits, for both Stewart Creek Park and Hidden Cove Park and outstanding gift certificates shall be honored by the Developer through the expiration date of any such permit and gift certificate. D. Exempt park entry permits held by City employees, Council, and Board members shall be honored throughout the term of this Agreement. ARTICLE V TERMINATION This Agreement may be terminated only by the mutual written agreement of the parties. Either party may terminate this Agreement if the other party breaches any of the terms and conditions of this Agreement, and such breach is not cured by such party within sixty (60) days after receipt of notice thereof. ARTICLE VI MISCELLANEOUS 6.1 Release. Upon the full and final satisfaction by the City and Developer of their respective obligations contained herein, the City and Developer shall execute and record in the Deed Records of Denton County, a release of the City and the Developer from their obligations set forth herein. 6.2 Bond. Developer shall provide a Performance / Maintenance Bond, letter of credit or cash deposited in an escrow account in the amount of fifty thousand ($50,000.00) to be utilized by the City to address items that are not in compliance with expected and required standards, in the event the Developer is in breach of contract and does not properly maintain and/or repair facilities, infrastructure, grounds and/or structures. Development Agreement - Page 14 69519 6.3 Books and Records. Developer and City agree to make their respective books and records relating to the construction of the Project available for inspection by the other party, until acceptance of the Project by the City. 6.4 INDEMNIFICATION/HOLD HARMLESS. DEVELOPER DOES HEREBY RELEASE, INDEMNIFY AND HOLD HARMLESS OR PROVIDE CONTRIBUTION IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, THE CITY, ITS OFFICERS, AGENTS, EMPLOYEES, AND THIRD PARTY REPRESENTATIVES (COLLECTIVEL Y REFERRED TO AS "CITY") FROM ANY AND ALL CLAIMS, DAMAGES, CAUSES OF ACTION OF ANY KIND WHATSOEVER, STATUTORY OR OTHERWISE, PERSONAL INJURY (INCLUDING DEATH), PROPERTY DAMAGE AND LAWSUITS AND JUDGMENTS, INCLUDING COURT COST, EXPENSES AND ATTORNEY'S FEES, AND ALL OTHER EXPENSES ARISING DIRECTL Y OR INDIRECTL Y FROM THE DEVELOPER'S PERFORMANCE OF THIS AGREEMENT. THE FOREGOING RELEASE AND INDEMNITY SHALL SURVIVE TERMINATION OF THIS AGREEMENT. 6.5 Notice. All notices required by this Agreement shall be in writing and addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid or by hand delivery. Development Agreement - Page 15 69519 If intended for Developer, to: With copy to Marine Quest - Hidden Cove, L.P. Kelley B. Hill Attn: Dwight and Marcel Bosworth Pennington, Hill & Baker, LLP 6060 South Stemmons 611 Main Street, Suite 100 Lake Dallas, Texas 75065 Grapevine, Texas 76051 Facsimile No. (940) 497-2772 Facsimile No. (817) 410.4778 Ifintended for City, to: With copy to: City of The Colony, Texas Robert E. Hager Attn: City Manager Nichols, Jackson, Dillard, Hager & Smith 6800 Main Street 1800 Lincoln Plaza The Colony, Texas 75056 500 N. Akard The Colony, Texas 75030-0099 Dallas, Texas 75201 Facsimile No. 972/624-2298 Facsimile No. (214) 965-0010 6.6 Compliance with Laws. Developer shall fully comply with all local, state and federal laws, including all codes, ordinances and regulations applicable to this Agreement and the work to be done thereunder, which exist or which may be enacted later by governmental bodies having jurisdiction or authority for such enactment. Developer shall be in full compliance with the terms and conditions set forth in the Lease Agreement by and between the City and the Corps for Hidden Cove Park. 6.7 Successors and Assigns. All obligations and covenants of the Developer under this Agreement shall be binding on the Developer, its successors and permitted assigns. The Developer may not assign this Agreement without the prior written consent of the City. 6.8 Severability. In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall be enforceable and shall be enforced as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. Development Agreement - Page 16 69519 6.9 Governing Law. The validity of this Agreement and any of its terms and provisions, as well as the rights and duties of the parties, shall be governed by the laws of the State of Texas; and venue for any action concerning this Agreement shall be in State District Court of Denton County, Texas. 6.10 Entire Agreement. This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written, previous and contemporary agreements between the parties and relating to the matters in this Agreement, and except as otherwise provided herein cannot be modified without written agreement of the parties to be attached to and made a part of this Agreement. 6.11 Recordation of Agreement. A certified copy of this Agreement shall be recorded in the Deed Records of Denton County, Texas. 6.12 Incorporation of Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 6.13 Construction. This Agreement shall be constructed in connection with the Lease executed by the parties hereto; should a conflict arise between the Lease and this Agreement, the provisions of this Agreement shall control; in the event that a conflict arises between the ordinances of the City of The Colony and this Agreement, the ordinances of the City shall control. 6.14 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Development Agreement - Page 17 69519 6.15 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. EXECUTED in duplicate originals this the 3rd day of January, 2005. CITY: CITY OF THE COLONY, TEXAS By: ~~ cU~ DALE CHEATHAM, CITY MANAGER ATTEST: It By.C.~AL {{)Ai2~ STIE WILSON, CITY SECRETARY : EXECUTED in duplicate originals this the ;t!!day of 9~~ ,2005. DEVELOPER MARINE QUEST - HIDDEN COVE, L.P. By its General Partner, Marine Quest, Inc. ~fu 1f:}t1f;Q Tit e: (S;.. Development Agreement - Page 18 69519 . CITY'S ACKNOWLEDGMENT STATE OF TEXAS ~ ~ COUNTY OF DENTON ~ This instrument was acknowledged before me on the I(/) day of ~ )~ ',-l\-\.A.~ Y , 2005 by Dale Cheatham, City Manager of the City of The Colony, Texas, on behalf of said municipality. ~ ary Public, State of Texas My Commission Expires: 0D~~~ -YO DEVELOPER'S ACKNOWLEDGMENT STATE OF TEXAS ~ COUNTY OF OE.AJ/o^-.f ~ ~ This instrument was acknowledged before me on the ~ day of 0 ?/.r--' L~/-\ R-, Y 2005 by'"tw\~\-l' &sWllUI-{ the 6p of Marine Quest-Hidden Cove, L.P., General Partner of Marine Quest, Inc., on behalf of said partnership. -, Development Agreement - Page 19 69519 Marine Quest I City of The Colony Development Agreement Attachments . ~H~~~o~sO~o 1 ~ a 'i .. 'a (. 'j 'q lj! ..; 0 >~81~~..1.. ~. T I 0 , ,"0 0 , , , ' , ; " I u .. , . , ' ; ; , , , , ' . , " , """""'"'''''''''' r : : : , : : l: : : : : : .t.: : : : : : ~ : ::1: ' : : : : '.!..~ ~ : 0: ' : , , , : ' , : ~'~::1 ! ~ :::::~~~:~:::':':::::~~~g~: W ::,::: ~ t g : * : : : ~! : : : : ~ ~ g ~ ~ : [,] :::: :"'.:~':;5,::: :5'.',,, ~ :: :~~~8~:~~:3~~~:~~~~fii~~ : :':'~~8~~:~~:~~~*:~~ ~~~a~ ~ .:,' ~~~~~~':'~~"':5h..J: "ilISJ,5 t: "'I! o':'~:<~"'gj;!""'-'~"'g;:r:::!, 8!ll5~~ ~ !l'" <lo,.~:<-, ""''''3U~zo, u_ u ;<0. I ~Cl~1fig~~ii~:~~ "'ti~if~~~~ z <;~ ( i ~ -' "'g o",wuw:<",o",_"" u:So ;;joi5~:;:" \i~"'liW::li~":r:~3J ii: [1 !.! ~~U4>:4 2ffi~~~~ am J $if~$tl&.~::f i 'II ! ~ . :.;. , I ';t. J Jl.. _ I '~ 4, I .... ! I \ I =-' ~ --. ~ \ r--______ ~ ~ ri~ <(, ~~ - - ~ ')-.. + ~ ~ Jt ~ - oj -s: X :fU) ~ U\ ~ ~\ & t:< .;;.. '0;: ...:j -' o~ ,- .;;.. -+A., 1 .;.. , I '; ~.x ~.\ b;-r Il A Ie LAND DESCRIPTION BEING a 428-acre parcel of land situated in the B.B.S. & C.R.R. Co. Survey, Abstract No. 179, B.B.B. & C.R.R. Co. Survey, Abstract No. 182, B.B.B. & C.R.R. Co. Survey, Abstract No. 170, F.M. Grace Survey, Abstract 469, William H. Clark Survey, Abstract 317, G.W. Grace Survey, Abstract 490, William Loving Survey, Abstract 747, A King Survey, Abstract 707, AW. Rogers Survey, Abstract 1114, J.H. Perry Survey, Abstract 1058, and C.C. Survey, Abstract 720 Denton County, Texas, said tract being a portion of the tract of land in Annexation by the City of The Colony as described in Ordinance 379, dated November 2, 1985, said tract being more particularly described as follows; BEGINNING, at a Corps of Engineers monument found having Texas Coordinates of X = 2,173,307.95 feet, Y::: 533,993.35 feet NAD 27 Texas North Central Zone, and being in the West, right-of-way of Hackberry Creek Park Road ( a 100 foot wide right-of-way); said point being in the north line of the remainder of a tract of land acquired by the United States of America from Maud S. McEntire by Declaration of Taking, filed September 16, 1952, in condemnation proceedings (Civil No. 805), in District Court of the United States for the Eastern District of Texas, Sherman Division and designated as Tract E-401-2 for the Garza-Little Elm Reservoir, said point being the southeast comer of a tract of land described in Special Warranty Deed from Sunset Pointe I, L TO to One Hackberry Creek L TD PIS recorded in County Clerk Instrument No. 2004-118302 of the Real Property Records of Denton County, Texas; Said point being in the north line of said Annexation by the City of The Colony; THENCE, South 89 degrees, 57 minutes, 42 seconds East, with the said north line of said Annexation by the City of The Colony, for a distance of 100.00 feet to a point in the East, line of said Hackberry Creek Park Road; said point being the southwest corner of Saratoga, Section One, an addition to Denton County, Texas according to the plat recorded in Cabinet C, Page 35 of the Plat Records of Denton County, Texas, said point being the southwest comer of Lot 1 C, Replat of Tract No.1, Saratoga, Section One, an addition to Denton County, Texas according to the plat recorded in Cabinet K. pa.ge 316 of the Plat Records of Denton County, Texas; THENCE, South 21 degrees, 43 minutes, 17 seconds East, departing said East, line of Hackberry Creek Park Road, for a distance of 107.70 feet; THENCE, South 00 degrees, 04 minutes, 48 seconds West, for a distance of 245.39 feet to a point at the beginning of a tangent curve concave to the northeast, with radius of 140.00 feet, a central angle of 59 degrees, 38 minutes, 45 seconds, on a chord of which bears South 29 degrees, 44 minutes, 34 seconds East, for a distance of 139.25 feet; THENCE, in a southeasterly direction, along a said curve, through an arc length of 145.74 feet to a point at the beginning of a compound curve concave to the northeast, with radius of 310.00 feet, a central angle of 36 degrees, 27 minutes, 55 seconds, on a chord of which bears South 77 degrees, 47 minutes, 54 seconds East, for a distance of 193.98 feet; Page 1 of 7 December 27. 2004 THENCE, in a southeasterly direction, along a said curve, through an arc length of 197.30 feet to a point at the beginning of a reverse curve concave to the southwest with radius of 80.00 feet, a central angle of 146 degrees, 33 minutes, 36 seconds, on a chord of which bears South 22 degrees, 45 minutes, 03 seconds East, for a distance of 153.24 feet; THENCE, in a southeasterly direction, along a said curve, through an arc length of 204.64 feet; THENCE, South 05 degrees, 04 minutes, 20 seconds East, for a distance of 70.00 feet; THENCE, South 88 degrees, 42 minutes, 17 seconds East, for a distance of 159.70 feet; THENCE, South 82 degrees, 20 minutes, 14 seconds East, for a distance of 238.58 feet to a point at the beginning of a tangent curve concave to the north with radius of 300.00 feet, a central angle of 38 degrees, 28 minutes, 32 seconds, on a chord of which bears North 78 degrees, 25 minutes, 31 seconds East, for a distance of 197.69 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 201.46 feet; THENCE, North 59 degrees, 11 minutes, 15 seconds East, for a distance of 119.01 feet; THENCE, North 15 degrees, 09 minutes, 40 seconds West, for a distance of 212.77 feet; THENCE, North 00 degrees, 17 minutes, 26 seconds West, for a distance of 447.16 feet to a point in a south line of aforementioned Saratoga, Section One; THENCE, easterly and northeasterly with the southerly boundary of said Saratoga, Section One the fOllowing three courses; 1. South 89 degrees, 57 minutes, 42 seconds East, for a distance of 642.30 feet; 2. North 34 degrees, 47 minutes, 33 seconds East, for a distance of 404.51 feet; 3. North 54 degrees, 11 minutes, 58 seconds East, for a distance of 65.43 feet to a Corps of Engineers monument found having Texas Coordinates of X = 2,176,663.40 feet, Y = 534,138.59 feet NAD 27 Texas North Central Zone, and being in a westerly line of Saratoga, Section Two, an addition to Denton County, Texas according to the plat recorded in Cabinet C, Page 36 of the Plat Records of Denton County, Texas; THENCE, easterly and westerly with the southerly boundary of said Saratoga, Section One the following nine courses 1. South 09 degrees, 26 minutes, 28 seconds West, for a distance of 429.79 feet; Page 2 of 7 December 27,2004 2. South 70 degrees, 25 minutes, 22 seconds East, for a distance of 799.95 feet; 3. South 27 degrees, 06 minutes, 17 seconds West, for a distance of 746.92 feet; 4. South 35 degrees, 17 minutes, 45 seconds West, for a distance of 766.02 feet to a Corps of Engineers monument found having Texas Coordinates of X = 2,175,880.61 feet, Y = 532,848.69 feet NAD27 Texas North Central Zone; 5. South 65 degrees, 47 minutes, 39 seconds West, for a distance.of 632.12 feet to a Corps of Engineers monument found having Texas Coordinates of X = 2,175,304.13 feet, Y = 532,589.54 feet NAD 27 Texas North Central Zone; 6. South 72 degrees, 19 minutes, 21 seconds East, for a distance of 443.30 feet; 7. North 56 degrees, 07 minutes, 39 seconds East, for a distance of 260.00 feet; 8. North 85 degrees, 58 minutes, 39 seconds East, for a distance of 315.00 feet; 9. South 00 degrees, 26 minutes, 34 seconds West, passing at a distance of 339.80 feet the southwest comer of Lot 9, Block 3 of said Saratoga, Section Two, then continuing for an additional distance of approximately 306 feet, for a total distance of approximately 646 feet to a point at the conservation water elevation of 522 feet. THENCE, southerly, westerly and northerly with the conservation water elevation of 522 feet, approximately 33,750 feet; THENCE, South 89 degrees, 45 minutes, 00 seconds East, departing said water conservation line, passing at a distance of approximately 42 feet a point from which a 5/8-inch iron rod set in concrete with 3-ihch aluminum cap stamped "Survey Marker - Do Not Disturb - Dan 2" having Texas Coordinates of X = 2,167,750.58 feet, Y = 532,862.11 feet NAD 27 Texas North Central Zone bears North 00 degrees, 15 minutes, 00 seconds East, a distance of 108.10 feet from said point, then continuing for an additional distance of approximately 2133 feet, for a total distance of approximately 2175.00 feet to a 5/8-inchiron rod set in concrete with 3-inch aluminum cap stamped "Survey Marker - Do Not Disturb"" Dan 1" having Texas Coordinates of X = 2,169,883.00 feet, Y = 532,744.72 feet NAD 27 Texas North Central Zone THENCE, North 00 degrees, 15 minutes, 00 seconds East, for a distance of approximately 1437 feet to a point at the conservation water elevation of 522 feet. THENCE, easterly northerly with the conservation water elevation of 522 feet, approximately 975 feet to a point; THENCE, North 68 degrees, 34 minutes, 59 seconds East, departing said water conservation line, for a distance of approximately 360 feet; Page 3 of 7 December 27, 2004 THENCE, South 20 degrees, 39 minutes, 16 seconds East, for a distance of 491.64 feet; THENCE, South 00 degrees, 15 minutes, 00 seconds West, for a distance of 1075.00 feet; THENCE, South 57 degrees, 45 minutes, 00 seconds East, for a distance of 108.69 feet to a point at the beginning of a nontangent curve concave to the northwest with radius of 390.00 feet, a central angle of 30 degrees, 45 minutes, 30 seconds, on a chord of which bears North 50 degrees, 56 minutes, 01 seconds East, for a distance of 206.86 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 209.36 feet to a point at the beginning of a reverse curve concave to the southeast with radius of 1200.00 feet, a central angle of 13 degrees, 34 minutes, 52 seconds, on a chord of which bears North 42 degrees, 20 minutes, 42 seconds East, for a distance of 283.78 feet; THENCE, in a northeasterly direction, along a said curve to the left through an arc length of 284.44 feet to a point at the beginning of a compound curve concave to the southeast with radius of 325.00 feet, a central angle of 15 degrees, 00 minutes, 12 seconds, on a chord of which bears North 56 degrees, 38 minutes, 14 seconds East, for a distance of 84.86 feet; THENCE, in a northeasterly direction, along a said curve to the left through an arc length of 85.10 feet; /---- THENCE, North 64 degrees, 08 minutes, 20 seconds East, for a distance of 14.00 feet to a point at the beginning of a nontangent .curve concave to the northwest with radius of 18.00 feet, a central angle of 98 degrees, 19 minutes, 25 seconds, on a chord of which bears North 14 degrees, 54 minutes, 47 seconds East, for a distance of 27.24 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 30.89 feet to a point at the beginning of a reverse curve concave to the southeast with radius of 25.00 feet, a central angle of 101 degrees, 49 minutes, 24 seconds, on a chord of which bears North 16 degrees, 39 minutes, 46 seconds East, for a distahce of 38.81 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 44.43 feet to a point at the beginning of a reverse curve concave to the northwest with radius of 10.00 feet, a central angle of 67 degrees, 34 minutes, 28 seconds, on a chord of which bears North 33 degrees, 47 minutes, 14 seconds East, for a distance of 11.12 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 11.79 feet; Page 4 of 7 December 27. 2004 THENCE, North, for a distance of 33.14 feet to a point at the beginning of a nontangent curve concave to the northeast, with radius of 225.00 feet, a central angle of 07 degrees, 41 minutes, 07 seconds, on a chord of which bears North 20 degrees, 33 minutes, 12 seconds West, for a distance of 30.16 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 30.18 feet to a point at the beginning of a reverse curve concave to the southwest, with radius of 10.00 feet, a central angle of 77 degrees, 44 minutes, 56 seconds, on a chord of which bears North 55 degrees, 35 minutes, 06 seconds West, for a distance of 12.55 feet; THENCE, in a northwesterly direction, along a said curve, through an arc length of 13.57 feet to a point at the beginning of a reverse curve concave to the southeast with radius of 50.00 feet, a central angle of 260 degrees, 43 minutes, 40 seconds, on a chord of which bears North 35 degrees, 54 minutes, 15 seconds East, for a distance of 76.19 feet; THENCE, in a northwesterly, northerly, easterly and southeasterly direction, along a said curve, through an arc length of 227.53 feet; THENCE, South 13 degrees, 45 minutes, 00 seconds East, for a distance of 47.06 feet to a point at the beginning of a tangent curve concave to the northeast, with radius of 175.00 feet, a central angle of 12 degrees, 55 minutes, 00 seconds, on a chord of which bears South 20 degrees, 12 minutes, 30 seconds East, for a distance of 39.37 feet; THENCE, in a southeasterly direction, along a said curve, through an arc length of 39.45 feet; THENCE, South 65 degrees, 30 minutes, 00 seconds East, for a distance of 37.30 feet; THENCE, South 31 degrees, 45 minutes, 00 seconds East, for a distance of 15.00 feet; THENCE, South 62 degrees, 45 minutes, 00 seconds East, for a distance of 17.00 feet; THENCE, North 70 degrees, 00 minutes, 00 seconds East, for a distance of 385.00 feet; THENCE, North 12 degrees, 30 minutes, 00 seconds West, for a distance of 420.00 feet; THENCE, North 77 degrees, 30 minutes, 00 seconds East, for a distance of 155.00 feet to a point at the beginning of a tangent curve concave to the south, with radius of 1250.00 feet, a central angle of 22 degrees, 30 minutes, 00 seconds, on a chord of which bears North 88 degrees, 45 minutes, 00 seconds East, for a distance of 487.73 feet; THENCE, in an easterly direction, along a said curve, through an arc length of 490.87 feet; Page 50f7 December 27,2004 THENCE, South 80 degrees, 00 minutes, 00 seconds East, for a distance of 479.95 feet to a point at the beginning of a tangent curve concave to the southwest, with radius of 750.00 feet, a central angle of 13 degrees, 15 minutes, 00 seconds, on a chord of which bears South 73 degrees, 22 minutes, 30 seconds East, for a distance of 173.06 feet; THENCE, in an easterly direction, along a said curve, through an arc length of 173.44 feet; THENCE, South 23 degrees, 15 minutes, 00 seconds West, for a distance of 420.00 feet; THENCE, South 66 degrees, 45 minutes, 00 seconds East, for a distance of 155.00 feet; THENCE, North 23 degrees, 15 minutes, 00 seconds East, for a distance of 20.00 feet; THENCE, South 66 degrees, 45 minutes, 00 seconds East, for a distance of 37.00 feet; THENCE, South 23 degrees, 15 minutes, 00 seconds West, for a distance of 20.00 feet; THENCE, South 66 degrees, 45 minutes, 00 seconds East, for a distance of 275.00 feet to a point at the beginning of a tangent curve concave to the northeast, with radius of 625.00 feet, a central angle of 21 degrees, 15 minutes, 00 seconds, on a chord of which bears South 77 degrees, 22 minutes, 30 seconds East, for a distance of 230.48 feet; 'THENCE, in an easterly direction, along a said curve, through an arc length of 231.80 feet; THENCE, North 16 degrees, 30 minutes, 00 seconds East, for a distance of 25.00 feet; THENCE, North 58 degrees, 00 minutes, 00 seconds East, for a distance of 110.00 feet; THENCE, North 30 degrees, 00 minutes, 00 seconds East, for a distance of 25.00 feet; THENCE, North 00 degrees, 45 minutes, 00 seconds East, for a distance of 75.00 feet; ,THENCE, North 17 degrees, 00 minutes, 00 seconds East, for a distance of 47.00 feet; THENCE, North 00 degrees, 30 minutes, 00 seconds East, for a distance of 25.00 feet to a point at the beginning of a nontangent curve concave to the southeast, with radius of 25.00 feet, a central angle of 73 degrees, 31 minutes, 26 seconds, on a chord of which bears North 36 degrees, 45 minutes, 43 seconds East, for a distance of 29.92 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 32.08 feet to a point at the beginning of a reverse curve concave to the northwest with radius of 25.00 feet, a central angle of 73 degrees, 26 minutes, 38 seconds, on a chord of Page 6 of 7 December 27,2004 which bears North 36 degrees, 48 minutes, 07 seconds East, for a distance of 29.90 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 32.05 feet; THENCE, North 00 degrees, 04 minutes, 48 seconds East, for a distance of 25.00 feet; THENCE, North 29 degrees, 55 minutes, 12 seconds West, for a distance of 30.00 feet; THENCE, North 00 degrees, 04 minutes, 48 seconds East, for a distance of 78.07 feet; THENCE, North 15 degrees, 04 minutes, 48 seconds East, for a distance of 96.59 feet; THENCE, North 00 degrees, 04 minutes, 48 seconds East, for a distance of 345.00 feet; THENCE, North 24 degrees, 32 minutes, 38 seconds East, for a distance of 108.66 feet to the POINT OF BEGINNING. CONTAINING: 428 acres of land, more or less. This document was prepared under 22 TAC 663.21, does not reflect the results of an on the ground survey, and is not to be. used to conveyor establish interest in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. Page 7 of 7 December 27. 2004 c a - r&. CII .... e_ Site of Marina &It and Restaurant CU C e_ f:' -" /::\ ! s: 1 I J~ .~ (+ - <t CU ~ - e ~ ~ ---t" ~ c..) .... s:: ~ 0 . .:.s: - ~ ~ a ec ~ CLJ C .. CD 4: C r I I I , I J I I I I "I r"l r, r', ,.-, r-l r-, r--r r. r' ,--, ~ , . ~ , V~ = Wlif.t Di iEB 11m! ~ ~ I6f5!I -- -- - - - - - -. Exhibit "B" Marine Quest! City of The Colony Ground Lease Agreement IS l 'l 1+ il ~}\ .r ~; .'~r .i .'.: ~\ :' ':',~ ~~ t -"-t ADA ~C!OMPLIANCE )( "\,\ QJ ' Accessible Routes ADAAG requires that at least one accessible route connect accessib~ buildings. facilities. elements, and spaces on a site. Acces$ible boat slips. accessjble boarding piers at bOat launch rampSr and other accessible spaces and elements within a boating facility will also be connected by an access~bte route. The accessible route wm comply with ADMG provisiotrS fO( the location, width (minimuM of 36 irtehes), pa$$ing space, head room, surface, stope (maximum of 1: 12 or 8.33%). changes in tevel. doors. egress. and areas of rescue a$$i$wnce, unless otherwise modified by specific provi$ion$ outline io. Accessible Boating Facilities gl)ide. .. Gangways A gangway is a variab~sloped pedestrian walkway linking a fixed structure or land with a floatmg (di'UCture. lNhere gangvlaYs are provided as part of accessible rwles to connect accessible boat slips on floating piers. the following exceptions to the ADMG accessible tome proviSions have been included in the guidelines to deal with the varying water level changes and other factors in this dynamic environment. . Gangway Slope and Rise Exceptions Gangways designed for the lea$l possible slope will provide more independent &CCe$$for persons with disabilities. As a minimum. gangways wil be f;lesigned to provide for a maximum 1:12 (8.33%) $lope. Here is an exception. in that the fluctuation is water level may cause the gangway stope to vary from 1 :20 (5%) and at other times it may be greater than 1:12 (8.33%). Gangways are npt required to be longer than 80 feet in length, in order to accommodate the 1 :12 sfope. ... . The maximum rise requirement$ in AOMG do n01 apply to gangways. As a result, .tlO int$rmediste landings on the gangways are required and gangways may be any length. Tran&ition Plates T rans.ition plates are sloping pedestrian walking surfaces located at the end of a gangway. Gangways are not required to have landings at the end. if transition piates are provided. If the slope of a transition plate is greater than 1 :20 (5%), the transition plate must have a landing at the non-gangway end of the transition mate and comply with other ADAAG ramp requirements. 2 Handrail Extensions Handrail extensions are not required where gangw?ys and transition plates connect and both are pro\~ded with handraUs. ADAAG does not require handraits on sloped surfaces that have a rise of less than a inches or a projection less than 72 inches, or a slope of 1 :20 (5%) or less. Wlere handran extensions are provided, they do not need to be parallel vnth the ground of floor surface. - since the $urface may be moving due to v-mter- conditions. Cross Slopes; The cross slopes of gangways; transitjon plates and floating piers that are part of an .aooossible route will be designed and constructed ib not exceed ~ maximum . of 2 percent (1 :50). Ga.'lQWays and piers that are part of an acoessibte route viii) be designed and constructed to meet the 2 percent requirement. Once placed in the water. measurements. absent live loads, will be made from ~ static condition (i.e., absence of movement that results from wind, waves, etc.). \I'''here floating piers Bre grounded out due to low water conditions. slope requirements would not apply- Boat Slips A boat slip is the portion of a pier, main pier, finger pier, of float where a boat is berthed or moored. or used for embarking or di$$mbarkiog. VVhere boat sUps are provided, the number of boat $lops required to be accessible will comply with the table shown OOlo--N. In these guideUnes. boarding pief$ that are not part of boat j~unch ramps wifl also be classified as boat $lips. For purposes of these guidelines, piers not f)'pically thought of as providing boat slips where boats can be moored. such as a fuel pier. witl also be included in d$termining the total number of sUps at the facility. Number of Accessible ~- .....~... Boat Slips Required i 10tal St~.P..s in Facility : '-0". Minimum}\Cces$ible SHps , ~. _ 301400 ! 6 I , .. -. ...- .. ... ..- Dispersion Accessible boat slips wfll be di$per'$ed throughout the facUity. . D\' ~y ~.tlo j t f/ Hidden Cove Park Employee Salary & Benefits All current employees of Hidden Cove are invited to remain on starr: The present housing arrangements will remain. Some clarification regarding the bartering is needed. Our goal is for all employees at Hidden Cove Park to maintain their current standard~ of living. The City of The Colony offers above average compensation and generous benefits. The Texas Municipal Retirement System, fully funded health and life insurance, and various benefits' pay create an impressive benefit package. We will match the current base pay for every employee. Each employee now covered by workers compensation would also be covered by Marine Quest Our health insurance is not as comprehensive as that presently available. One option might be to continue coverage under The Colony's Insurance Plan and Marine Quest would reimburse The Colony. All plans available through Marine Quest will be made available to Hidden Cove Employees. Vacations, sick time accrual and paid Holidays will be in compliance with Marine Quest policies. To further insure job security, we are prepared to offer a minimum 1 year contract to current employees with the promise of no downsizing or layoffs. We do reserve the right to terminate for 'just cause". Included in said contract is a provision for Employee Profit Sharing after the 1 st anniversary. The formula for profit sharing will be similar to our program for Marina managers. 1. Base Pay - same 2. Workers Comp - same 3. Insurance - same* 4. Promise of no downsizingllay-offs. Annual performance reviews required and ''just cause" termination ~eserved. 5. VacationIHolidays in compliance with Marine Quest standards 6. Profit Sharing for Employees after 1 year, (similar to longevity pay & paid at approximately same time) - * Should insurance be available through The Colony, reimbursed by Marine Quest Hidden Cove Park. Full Time Employees WkIy , BASE SAlARY' , SUB-TOTAL , 40 hrs LONGEVITY Per hr -.. BREWSTER, ROSE M $ 25,380.00 690.00 $ 26,070.00 $ 488.08 $ 12.20 hr Insurance 4175.21 ~ Workers Camp 997.43 Holiday,sick & vacation pay 3354.41 Texas Municipal Retirement System 3172.50 Pay & Insurance benefits $ 11.699.55 $ 37,769.55 HENDERSON, FRElDA J $ 34,548.00 1.140.00 35,688.00 $ 664.38 $ 16.29 hr Insurance 4244.88 Workers Comp 1357.74 HoIiday,sick & vacation pay 5144.88 Texas Municipal Retirement System 4318.50 Pay & Insurance benefits $ 15,066.00 . $ 50,754.00 LONGAN. PATRICK T $ 27,816.00 190.00 $ 28,006.00 $ 534.92 $ 13.37 hr . Insurance 4193.72 ".1\., W<X1<:ers Camp 1093.17 Horlday.sick & vacation pay , .. "4171.44 Texas Municipal Retirement System 34n.OO Pay & Insurance .benefits $ 12,935.33 $ 40.941.33 ITRJM.BLE. WILlIAM $ 23.880.00 970.00 $ 24.850.00 $ 459.23 $11.48 hr Insumnce 4163.81 Woricecs Comp 938.48 Holiday,sick & vacation pay 3581.76 Texas Municipal Retirement System 2985.00 Pay & Insurance benefits . $ 11,669.05 $ 36,519.05 - .. PEREZ-HERNANOEZ, ROBERTO $ 21,445.00 $ 21,445.00 $ 412.40 $ 10.31 hr Insurance 4145.30 Workers ComP. 842.79 HoIiday,$ick & vacation pay 2804.32 Texas Municipal Retirement System 2676.34 i PaY & Insurance benefits $ 10,468.75 $ 31,913.75 Wkly , BASE SALARY I LONGEVITY 1 SUB-TOTAl I 40 hrs Per hr Hidden Cove Pad<, Part Tnne Employees IOANE, LEONOMEA $ 7,904.00 $ 7,904.00 $ 152.00 $ 8.08 hr Hotiday,sick & vacation pay 1163.52 . Pay & Insurance benefits $ 1,163.52 $9,067.52 - - NORTON, STELLA $ 9.360.00 $ 9,360.00 $ 180.00 HoIiday,sick & vaamon pa'/ . Pay & Insurance benefits $9.360.00 Basic Wages $ 150,333.00 Workers Comp $ 5.229.61 Insurance $ 20,922.92 $ 176.485.53 Current Pay . Base & longevity $153,323.00 I: HoI,Sick. Vac Pay $ 20,220.33 $173,543.33 - ,---___ . _"W . . ...._ .~"._. ..........._._.~___. _H'm. ....... . . m.... .______. -- -------------- ----.- -. [}(j c a - :\~:-':.:I.;. ';q '-: ra. CY .. .- Ut u r:: .- _. e 0 ..t: f UJt !: CD .- > .. U Expand > 0 RV Storage - a .- .. .- u . C ... . u . ..r ~v,...:i~~s c - - . "'- r~ '-- - r j I J 1 1 ;f J r'''J ,-"', ,-, r-J ,-, r-1 r--1 r--J r--J' r-l r-1 r-t ~ I 9$ . !l .. ._.. ~ ,_ _'__"_O"~'__ _. ~A'_'_____._.'" '.___._._ .._... _ '.._ ,__, - .-- -.'-.----------------- []:!] Convert \;;:j;/':";;"J;" Shelters to Cabins ',,' "';;'\)~i~~%:h~;;,,) "4",";'~ "!':"::~-r~,f~~,,', - ~ ,. '.. ~_ Site of M'arina it- · ., 'U,....,........ _ ." ~\ Q'~~~ and Resta urant '" ~;;.\t~~~: '; , ~ . Reach . f ' ' .1 i ( - .. .- . II: . . I ~..:' " '".' 'it .. '.':- RV"'.:!t~s .. C - ~' - \ STATE OF TEXAS ~ ~ GROUND LEASE. REAL PROPERTY AND ~ PERSONAL PROPERTY LEASE AGREEMENT COUNTY OF DENTON ~ THIS GROUND AND REAL PROPERTY LEASE AGREEMENT, hereinafter called the "Lease," is made and entered into this 3rd day of January, 2005, by and between the City of I The Colony, Texas, a Texas municipal corporation, hereinafter referred to as "Lessor" and Marine Quest - Hidden Cove, L.P., a Texas limited partnership, hereinafter referred to collectively as "Lessees." RECITALS A. A lease (hereinafter defined and described as the Corps Lease) was entered into on the 1ih day of May, 2000, by and between the U.S. Army Corps of Engineers, as Lessor, and the City of The Colony, Texas, as Lessees, covering the acreage in the tract, as defined and I described in Exhibit "A." This parcel of land, herein sometimes referred to as the "Leased Premises", identified as Hidden Cove Park, consists of 720=!: acres and has been leased from the Corps by Lessor. B. Lessor desires to sublease to Marine Quest - Hidden Cove, LP ("Lessees"), a portion of said tract or parcel so as to permit Lessees to construct and operate a multi-use recreational and service facility on said acreage as shown on the concept plan for the Leased Premises attached hereto and incorporated herein as Exhibit "B." NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of all of which are mutually acknowledged, the parties hereby agree as follows: ARTICLE 1. DEFINITIONS 1.01 For purposes of this Lease, the following terms shall have the meanings indicated: A. Affiliate: The term "Affiliate" shall mean any person or entity which controls, is controlled by, or is under common control with Lessees. For purposes of this definition, the word "control" and its customary variants shall mean ownership of more than fifty percent (50%) of voting equity interest. B. Corps: The term "Corps" shall mean the U.S. Army Corps of Engineers, Fort Worth District. C. Corps Lease: The term "Corps Lease" shall mean that certain lease between the U.S. Army Corps of engineers, as Lessor, and the City of The Colony, as Lessees, designated as Lease No. DACW-1-00-0816 dated May 12, 2000, which establishes and governs the rights of the City of The Colony in regard to the Leased Premises. A copy of the Corps Lease is attached hereto and incorporated herein as Exhibit "c." D. Days: The term "days" means calendar days. In computing any period of time described in this Lease, the last day of a designated period of time shall be included in the time period, unless it is a Saturday, Sunday or legal holiday, in which event the period of time runs until the end of the next day which is not a Saturday, Sunday or legal holiday. E. District Engineer: The term "District Engineer" shall mean the U.S. Army District Engineer for the Fort Worth District who is in charge of the administration of the Lewisville Lake Project Area, his successors, assigns or duly authorized representatives, with addresses of District Engineer, Fort Worth District, Corps of Engineers, P.O. Box 17300, Fort Worth, Texas 76102. Attn: Real Estate Division, CESWF-RE-M. F. Facilities: The term "Facilities" shall mean and include the Amenities as I provided in Exhibit "D", which is attached hereto and incorporated herein by reference, and any and all reasonably related activities, and, those improvements or structures constructed subsequent to the effective date of this Lease by the Lessee pursuant to a separate Development Agreement between the Parties. G. Gross Revenue: The term "Gross Revenue" means all money received by Lessees, its sub lessees, assigns, concessionaires, operators, and licensees, subsequent to the Rent Commencement Date as a result of the sales of good or the provision of services on or from the Leased Premises, but shall not include: (1) Cash refunds or credits allowed on returns by customers; (2) Sales taxes, excise taxes, gross receipt taxes, admissions taxes, occupancy taxes, use taxes and other similar taxes not or later imposed upon the sale of food, beverages, merchandise or services and paid by Lessees to the appropriate taxing authority, whether added to or included in the selling price; (3) Rental payments for the ship store and fuel dock from JT's. 2 (4) The actual uncollectible amount of any check or bank draft received by Lessees as payment for goods or services and returned to Lessees from customer's bank as being uncollectible (commonly "non-sufficient funds" checks); (5) The actual uncollectible amount of any charge or credit account (commonly "bad debts") incurred by Lessees for the sale of merchandise or services; (6) The actual uncollectible amount of any sale of merchandise or services for which Lessees accepted a credit card; (7) Sales or trade-ins of machinery, vehicles, trade fixtures or personal property used in connection with Lessees' operation ofthe Leased Premises; (8) The value of any merchandise, supplies or equipment exchanged or transferred from or to the other locations of business of Lessees where such exchange or transfer is not made for the purpose of (or does not have the practical effect of) avoiding a sale which would otherwise be made from the Leased Premises; (9) Receipts in the form of refunds from or the value of merchandise, supplies or equipment returned to shippers, suppliers or manufacturers; (10) The amount of any cash or quantity discounts received from sellers, suppliers or manufacturers; (11) The amount of any gratuities paid or given by customers to or for employees of Lessees; (12) Amounts attributed to meals served or provided to employees of Lessees; (13) The amount of any sales of merchandise discounted to employees; (14) Receipts from the sale of waste or scrap materials resulting from Lessees' operations; and (15) The proceeds of any casualty insurance paid for damages to or destruction of the Leased Premises or any improvements or equipment thereon, actually used for Restoration (as defined in Section 10.02). The proceeds of any business interruption insurance, if any, maintained by Lessees or their assignee, sublessee, licensee, concessionaire, or operator, less the percentage of the cost of such insurance accrued over the Initial Term which is equal to the percentage of Gross Revenue which Lessor is then entitled to if Percentage Rent is paid, shall be included as a part of Gross Revenue. Example: In year 10, business interruption insurance proceeds received total 3 $100,000.00. Business interruption insurance premiums have been paid in each of the 10 years of the Lease, and the accrued cost of such premiums total $5,000. Percentage rent, ifpaid in year 10, would be 1 % of an amount of Gross Revenues as described herein. Amount of business interruption insurance which would be part of Gross Revenues would be $100,000 less 1 % of $5,000, or $99,950. H. Initial Facility: The term "Initial Facility" shall mean Hidden Cove Park in its condition on the date of this Lease. 1. Initial Term: The term "Initial Term" shall mean a period beginning on the Lease Commencement Date and ending on the twenty-fifth (25th) anniversary of the lease Commencement Date. Initial term may be extended by one or more additional ten (10) year terms upon approval of all the parties hereto. However, the Initial Term shall be subject to the earlier termination of the Corps Lease and periodic modifications, renewals and/or extensions thereof. 1. Leased Premises: The term "Leased Premises" shall mean that real property consisting of approximately 428 acres, more or less, located at 20400 Hackberry Creek Park I Road commonly known as Hidden Cove Park, Denton County, Texas, and being more particularly described on Exhibit "B" attached hereto. K. Lease Commencement Date: The term "Lease Commencement Date" shall mean the date in which this Lease is fully executed by all parties. L. Lease Year: The term "Lease Year" shall mean, during the term of this Lease, each twelve-month period commencing on the 1 5t day of January next following the Rent Commencement Date and ending on the next following 315t of December, and each successive twelve-month calendar period thereafter. M. Rent Commencement Date: The term "Rent Commencement Date" shall mean the date on which Lessees shall open the Initial Facility or any other substantial part of the Facilities for general use by the public, which date shall not be later than January 10,2005. I ARTICLE 2. DEMISE OF LEASE PREMISES 2.01 Lessor, for and in consideration of the rents, covenants and promises herein contain to be kept, performed and observed by Lessees and subject to the use of the Leased Premises as described in Article 8 hereof, has demised and leased and by these presents does hereby demise and lease unto Lessees on an exclusive basis, and Lessees, for and in 4 consideration of the covenants and agreements herein reserved on the part of the Lessor to be kept and performed, does hereby lease and accept from Lessor, the Leased Premises together with the improvements thereon and the appurtenances thereto, subject to (i) all terms and conditions of the Corps Lease, and (ii) all other matters of record in any way appertaining to the Leased Premises, including any easements and mineral interests upon the Leased Premises. Lessees acknowledge that they have inspected the Leased Premises to their complete satisfaction and accepts the Leased Premises "As Is" and with all faults and defects, whether known or unknown to either Lessor or Lessees and without representation of warranty of any kind from Lessor as to the status or condition thereof, except Lessor warrants that they (i) are the Lessees under the Corps Lease, (ii) have not previously assigned their rights under or entered into a sublease with respect to the Corps Lease, and (iii) have the absolute right, power and authority to enter into this Lease. Lessees acknowledge that their decision to lease the Leased Premises are based solely upon the Lessees' comprehensive inspection of the Leased Premises and not upon any warranty or representation of Lessor (except as stated above), or the Lessor's employees, agents, or representatives with regard thereto. Within limiting the foregoing, THERE IS NO WARRANTY, EXPRESSED OR IMPLIED, OF SUITABILITY, MERCHANTABILITY, HABIT ABILITY, OR FITNESS FOR ANY PARTICULAR PURPOSE GIVEN IN CONNECTION WITH THIS LEASE. 2.02 In addition to the real property leased hereunder, the City also hereby leases, demises and grants to Lessees, certain surplus property to use for the Leased Premises, such property more particularly described in Exhibit "E", which is attached hereto and incorporated herein by reference. Lessees shall, at their sole cost, be responsible for care, maintenance and operation of such property. Lessee herby further agrees to remove all brands, logos and identification of the City. In the event that the said property is no longer operable or functional, it will be returned to the City for disposition. ARTICLE 3. LEASE TERM 3.01 Commencement Date and Lease Term. Subject to the terms and conditions of this Lease, the demise set forth in Article 2 above shall be for the Initial Term. The parties agree to execute, acknowledge and deliver a mutually acceptable form of Memorandum of Lease (which shall, among other things, memorialize the Lease Commencement Date), contemporaneously 5 with the execution and delivery of this Lease, and such Memorandum of Lease shall be recorded in the real property records of Denton County, Texas. 3.02 Termination. This lease shall terminate and become null and void on the earlier of (i) the expiration of the Initial Term, or (ii) upon the revocation or termination of the Corps Lease. In the event of a proposed revocation or early termination of the Corps Lease, the parties hereto acknowledge and agree that Lessor shall give notice thereof to Lessees, and Lessor shall use its good faith efforts to prevent any such revocation or early termination. In the event that Lessor gives Lessees such notice, Lessees shall be entitled to negotiate or otherwise deal directly with the Corps in connection with a proposed revocation or early termination ofthe Corps Lease; provided, however, that before negotiating or dealing directly with the Corps, Lessees shall first give notice to Lessor of their intent to negotiate or deal directly with the Corps. Any holding over by Lessees after the termination of this Lease shall not constitute a renewal hereof or give Lessees any rights hereunder in or to the Leased Premises. Upon termination of this Lease, all improvements to the Leased Premises (whether or not constructed by Lessees) shall be and become the property of the Lessor; provided, however, Lessees shall be entitled to remove from the Leased Premises removable fixtures and equipment, provided, that such removal can be accomplished without umeasonable Injury to the Leased Premises or the remaInIng improvements on the Leased Premises. ARTICLE 4. CITY USE (1) During the term of this Lease, the City shall have the right for use of the Leased Premises for the following purposes upon giving sixty (60) days written notice: A. Four (4) special events for civic purposes, for example, national holidays, seasonal celebrations, or local civic purpose; and B. Six (6) one-day events at the Hidden Cove Conference Center/Dining Hall and parking lot. (2) The City shall also be granted the right to continue the use of annual entry permit for each of its full time employees. The City shall provide a list of its full time employees to the Lessees on the anniversary date of this Lease, which may be amended from time to time. This provision does not grant any license or leasehold interest for any third party and any other fees or charges, other than entry fees, may be charged to such employee. ARTICLE 5. RENT 6 5.01 During the Term of this Lease, Lessees shall pay rent to Lessor, whichever sum is greater, as follows: (1) Minimum Rent. Lessees agree to pay to Lessor as fixed Minimum Rent (herein so called), the following sums: . Fifty thousand dollars ($50,000.00) annually, with the first payment due upon execution of this Lease and subsequent payments on the annual anniversary date. (2) Percentage Rent. In the event that gross revenues percentage amounts exceed the minimum, Lessees shall pay against the annual minimum the following percentage rental: . One percent (1 %) of gross boat sales and restaurant sales; and . Six percent (6%) of all other sales and fees collected. Payment of Percentage Rent shall be made not later than sixty (60) days following the end of each Lease Year, beginning with the third Lease Year and continuing thereafter for each Lease Year during the remainder of this Lease. The base minimum rental amount provided herein shall be adjusted annually in accordance with the Federal Consumer Price Index ("CPI"). (3) In addition to the rent payments as stated above, Developer shall permit JT's Goods, Inc. the right to continue their current business at Hidden Cove Park with the terms of operation being as follows: . 2% of gross revenue paid to the City of The Colony; and . 4% of gross revenue paid to Marine Quest. Developer shall provide JT's with sufficient number of convenient courtesy slips for their use/lease as to accommodate the desired rental programs and shall permit JT's to operate the Ships Store/Fuel Dock; provided however, that JT's must furnish product and stock as desired. JT's shall operate under an open ended ongoing renewable lease approved and accepted by mutual agreement of the parties thereto. (4) Developer shall prepare a gross revenue report by the 10th day of the month for the revenue generated from the previous month along with the minimum or percentage rent. 7 Said rent payment shall be made payable to The City of The Colony and shall be submitted to the Parks and Recreation Department Administrative Offices, 5151 North Colony Boulevard, The Colony, Texas 75056. 5.02 Interest on Late Payments. In the event any rent to be paid hereunder or any other sum payable by Lessees or Lessor under the provisions of this Lease is not received by Lessor from Lessees within five (5) days from the date it is due and payable, Lessees shall pay to Lessor an additional sum ("Late Charge") equal to five percent (5%) of the amount due. Additionally, in the event any rent to be paid hereunder or any other sum payable by Lessees to Lessor under the provisions of this Lease is not received by Lessor within ten (10) days after its due for any reason whatsoever, it is agreed that the amount thus due shall bear interest from its due date at the Floating Rate (as hereafter defined). Any such interest shall be payable as additional rent hereunder, shall not be deducted as a business expense for the purpose of determining Gross Revenue, and shall be paid immediately upon demand. 5.03 Lien for Rent. In consideration of the mutual benefits arising under this Lease, Lessees hereby grant to Lessor a lien and security interest in all property of Lessees (including all fixtures, machinery, equipment, furnishings, and other articles of personal property now or hereafter placed in or on the Leased Premises by Lessees and owned by Lessees, together with the proceeds from the disposition of those items) (the "Collateral"), now or hereafter placed in or upon the Leased Premises, as security for payment of all rent and other sums agreed to be paid by Lessees herein. The provisions of this Section 4.03 constitute a security agreement under the Texas Uniform Commercial Code, as amended, and Lessor has and may enforce a security interest in the Collateral. Except on account of replacement, removal or substitution in the ordinary course of business, the Collateral shall not be removed without the consent of Lessor until all arrearages in rent and other sums of money then due to Lessor hereunder have been paid and discharged. On or before the Rent Commencement Date, Lessees shall execute, as Debtor, two or more Financing Statements, to perfect this security interest pursuant to the Texas Uniform Commercial Code, as amended. Lessor may at its election at any time file a copy of this Lease as a Financing Statement. Lessor, as Secured Party, has all of the rights and remedies afforded to a secured party under the Texas Uniform Commercial Code, as amended, in addition to and 8 cumulative to the landlord's liens and rights provided by law or by the other terms and provisions of this Lease. 5.04 Books and Records. Lessees agree to maintain a complete set of books and records in connection with all aspects of and specific to this Lease relating to Gross Revenue, kept and maintained in accordance with generally accepted accounting practices and procedures. Said books and records shall at all reasonable times be available for inspection, copying and examination by Lessor or by properly designated employees or agents of Lessor or by the District Engineer. Lessor may require the keeping of additional records or accounts relating to Gross Revenue which are customary for businesses conducted on the Leased Premises and which are reasonable necessary for purposes of identifying, accounting for, and reporting Gross Revenue. In order to determine the Gross Revenue received by Lessees, Lessees agree that, within 60 days following the end of the first Lease Year and each Lease Year thereafter, they will file with the City Secretary a report certified by Lessor's general partner as being true and correct and in a form to be prescribed and acceptable to the City in sufficient detail to itemize all Gross Revenue received from the Leased Premises, including revenue from each of the categories identified in the definition of Gross Revenues as set forth in Section 1.01 ofthis Lease. Lessor shall have the right, such right not to be exercised more frequently than once in each Lease Year, to audit the books and records of Lessees pertaining to the calculation of Gross Revenues produced on and from the Leased Premises so as to confirm the accuracy of the annual report of Gross Revenue described herein. Such audit, if any, shall be undertaken by a nationally recognized firm or independent certified public accountants engaged by Lessor and Lessees and the expense of which is to be paid one-half by Lessor and one-half by Lessees. Lessees shall cooperate by all reasonable means in order to facilitate a timely and accurate completion of such audit. A copy of the report of such audit shall be addressed to each of Lessor and Lessees and shall be delivered to each of Lessor and Lessees at substantially the same time. If such audit reveals that Lessees have understated Gross Revenues by 5% or more, then, within 30 days following receipt of such audit report, Lessees shall pay to Lessor the amount of any percentages rent deficiency based on such understated Gross Revenue (with such penalties for late payment as may be applicable pursuant to other provisions of this Lease). If such audit shall indicate an understatement of Gross Revenues of less than 5%, Lessees, in the manner herein above 9 provided, shall pay any Percentage Rent deficiency. If such audit indicates an overstatement of Gross Revenues and, if on account of such overstatement, Percentage Rent in excess of amounts due have been paid by Lessees to Lessor, then such overpayment (less any amounts other than Minimum Rent which shall then be due and owing to Lessor) shall be credited against the next due installment of Minimum Rent. Lessees shall report to Lessor such other reasonably related information relating to Lessees and Lessor as Lessor may reasonable consider useful and reasonably necessary. Lessor may, at any time, make inquiries pertaining to the operation of the Leased Premises and the improvements thereon, and Lessees shall respond to such inquiries on a timely basis. ARTICLE 6. TAXES 6.01 Payment by Lessees. Lessees shall pay and discharge all taxes, general and special assessments and other similar charges which, during the Initial Term, may be levied on or assessed against the Leased Premises and all interests therein and all improvements and other property, including personal property thereon, owned by Lessees. Lessees shall pay all such taxes, charges and assessments to the public officer charged with the collection thereof not less than fifteen (15) days before the same shall become delinquent, and Lessees agree to indemnify and save harmless Lessor from all such taxes, charges and assessments. Lessees shall have the right in good faith at their sole cost and expense to contest any such taxes, charges and assessments and shall be obligated to pay the contested amount only if and when finally determined to be due. Lessees shall give notice to Lessor of their intent to contest any such taxes, charges or assessments, the amount thereof and the entity to which such taxes, charges or assessments are purportedly owed. 6.02 Payment by Lessor. Subject to the right of the Lessees to contest taxes, assessments and governmental charges as hereinabove provided, Lessor may, at any time that the payment of any item of taxes, special assessments or governmental charges which Lessees are obligated to pay under the provisions of Section 5.01 remains unpaid, given written notice to Lessees of its default and if Lessees continue to fail to pay such item of taxes, special assessments or governmental charges or to contest the same in good faith, then at any time after ten (10) days from the date of such written notice Lessor may pay the items specified in the notice and Lessees covenant thereupon on demand to reimburse Lessor any amount so paid or 10 expended in the payment of the items specified in the notice, with interest thereon at the Floating Rate (as hereinafter defined) from the date of such payment by Lessor until repaid by Lessees. Provided, however, if Lessor, without giving the ten (10) days notice above provided for, pays any such item which has not been paid by Lessees within the time required in Section 5.01, or which has not then or thereafter been successfully contested by Lessees, Lessees shall nevertheless reimburse Lessor for such item, but without interest. I ARTICLE 7. UTILITIES Lessees shall payor cause to be paid all charges for water, heat, gas, electricity, sewer and any and all other utilities used by Lessees on the Leased Premises throughout the Initial Term of this Lease, including any connection fee or impact fee. Lessor shall make available sewer and water services access to the Leased Premises when such services are extended to the area immediately adjacent and contiguous to the Leased Premises, without cost, fee or payment by Lessees of amounts in excess of customary service connection or "tap" fees for such services. All water and sewer infrastructure within the Leased Premises shall be paid for solely by Lessees. ARTICLE 8. USE OF LEASED PREMISES Subject to the terms and conditions of the Corps Lease, Lessees shall use the Leased Premises solely for the purpose of constructing, maintaining and operating the Facilities. The Facilities shall be open to the public for use on a fee paying basis and/or for such public events reflected herein. In the use of the Leased Premises and in addition to all of the terms, conditions and obligations of this Lease, Lessees shall comply with and be subject to those terms and conditions set forth in Exhibits "C" and "F", which are attached hereto and incorporated herein. ARTICLE 9. CONSTRUCTION BY LESSEES 9.01 Construction of Improvements. Lessees shall have the right at any time and from time to time during the Term of this Lease, provided initial approval of the City Manager or his designee and the District Engineer is obtained in the manner hereinafter set forth in Section 8.02 and at Lessees' sole cost and expense, to construct, erect, maintain, alter, remodel, reconstruct, rebuild, repair, replace and remove buildings and other improvements on the Leased Premises, and correct and change the contour of the Leased Premises in accordance with the Developers Agreement executed by and between the Lessor and Lessees, subject to the following general conditions: 11 (1) The cost of any such construction, reconstruction, demolition or of any change, alteration or improvements, shall be borne and paid for by Lessees. (2) Lessees shall not be required to obtain the approval of the District Engineer to construct, erect, maintain, alter, remodel, reconstruct, rebuild, repair, replace and/or remove buildings and/or other improvements on the Leased Premises, and/or to correct and/or change the contour of the Leased Premises. and provided further that such undertaking is consistent with work approved by the District Engineer; provided, however, that Lessees shall not make or allow to be made, in order to avoid having to obtain the approval of the District Engineer, any sequential construction, remodeling, repaIr, removal, or maintenance of improvements or changes to contour of land when such construction, remodeling, repair, removal, or maintenance of improvements or changes to contour of land would normally be accomplished at a single time. (3) Lessees shall at all times keep and maintain the Leased Premises free of mechanic's and materialmen's liens. 9.02 (1) Approval of Plans by Lessor and the Corps. No building, structure or other material improvement, the plans, specifications and proposed location of which have not first received the written approval of Lessor and the Corps, or which do not comply with such approved plans, specifications and locations, shall be constructed, placed, erected, or maintained on the Leased Premises. Any construction, placement or erection of buildings, structures or other improvements upon the Leased Premises shall comply with all ordinances, rules and regulations of Lessor which are applicable and Lessees shall submit a detailed site plan for any such improvements under the Developers Agreement which shall be approved by the City Manager. Except as may be provided to the contrary elsewhere in this Lease, no material addition to or alteration of any building or structure erected on the Leased Premises shall be commenced unless and until plans and specifications of the proposed addition or alteration shall have been first submitted to and approved by Lessor and the Corps (such approval shall not be unreasonably withheld if the addition or alteration is consistent with then existing Facilities and uses); provided, however, that with respect to any such addition or alteration, Lessees shall be required to comply with all of Lessor's ordinances, rules and regulations relating to the construction of buildings and improvements which are applicable, generally, throughout the City. 12 For purposes of this subsection, an addition to or alteration of a building or structure is a material if the construction cost thereof exceed the Base Cost. (2) Approval by Lessor and the Corps. Lessor and the Corps will promptly review and approve the plans and specifications and development schedule or note in writing any required changes or corrections which must be made to the Developers Agreement, which is attached hereto as Exhibit "F." Approval cannot be unreasonably withheld or delayed. If any of said changes are acceptable, Lessees shall make such required changes or corrections in a prompt and orderly fashion and resubmit nine (9) sets of the plans and specifications for review and approval to Lessor and one (1) set to the Corps. The review and approval process shall be repeated until a mutually satisfactory set of plans and specifications is selected. If agreement cannot be reached acceptable to all parties, Lessor may, at Lessor's option, be deemed released from all further liability hereunder and may thereafter terminate this Lease; provided, however, that Lessees shall pay to Lessor the Prorated amount of rent due hereunder to the date of such termination. (3) Matters not Requiring Approval. The following items do not require submissions to, or approval of plans and specifications by, Lessor and/or the Corps: (a) Such minor repairs and alterations as may be necessary to maintain existing structures and improvements in a useful state of repair and operation; (b) Such changes and alterations, either at the time of the original construction or thereafter, as may be required by an authorized public official having authority or jurisdiction over such structures or improvements, in order to comply with legal requirements; and (c) Emergency repairs. (4) Effect of Approval. Neither Lessor nor the Corps, by approving such plans and specifications, assumes any liability or responsibility therefor or for any defect in any building or structure constructed from such plans and specifications. 9.03 Commencement of Construction. Lessees shall commence improvements according to the ten (10) Year Plan contained in Exhibit "F" on or before ninety (90) days from execution date ofthis Lease by both parties and upon receiving approval from the Corps. 13 ARTICLE 10. ENCUMBRANCE OF LEASEHOLD ESTATE 10.01 Encumbrances. Lessees may not, at any time and from time to time, encumber the Lessees' interests in the leasehold estate by one or more deeds of trust, mortgages or other security instruments. Except as provided in Section 5.03 of this Lease, Lessor shall never be required to subordinate Lessor's interest in this Lease or in the Leased Premises. The holder of indebtedness secured by any mortgage, deed of trust, or other security instrument approved pursuant to this Section 9.01 is hereafter called a "Lienholder." 10.02 Estoppel Certificates. Upon the written request of either party to this Lease, the other shall execute, acknowledge and deliver to the requesting party, a written statement certifying: (i) that none of the terms or provisions of this Lease have been changed (or if they have been changed, stating how they have been changed); (ii) that this Lease has not been canceled or terminated; (iii) the last date of payment of Minimum Rent, Percentage Rent and other charges, and the time period covered by such payment; and (iv) that the other party is not in default under this Lease (or, if the other party is claimed to be in default, stating why). Such party shall deliver such statement to the party requesting the same within ten (10) days after the requesting party's request. 10.03 Asset-Based Lending. Lessees shall have the right, at any time, to encumber all or any part of its interest in the inventory or trade fixtures on the Leased Premises with a lien to secure financing, and Lessor agrees to execute, subject to other provisions of this Lease, such waiver, subordination, or other agreements as any such asset-based lender may reasonably request in connection with such financing. Lessees agrees that any such Lessor's waiver shall include a provision reasonably acceptable to Lessor to the effect that (i) such asset-based lender shall have the right to remove such financed items from the Leased Premises only during the term of this Lease and for a period of sixty (60) days after Lessor has given written notice to such lender that the Lease has been terminated, for any reason; (ii) if such lender undertakes such removal, such lender shall be obligated to repair, at such lender's expense, any damage to the Leased Premises or the improvements thereon caused by the removal of any such financed items; and (iii) if such lender fails to remove such financed items during the term of this Lease, or within sixty (60) days after receiving written notice from Lessor of the termination of this Lease, such financed items shall be deemed to have been abandoned by such lender to Lessor. 14 ARTICLE 11. REPAIRS. RESTORATION AND MAINTENANCE 11.01 Lessees' Duties to Repair; Discovery of Hazardous Substances. Lessees, at Lessees' own cost and expense at all times during the Initial Term, shall keep and maintain, or cause to be kept and maintained, the Leased Premises and all buildings and improvements which may be constructed, placed, located, or erected on the Leased Premises in a good state of appearance and repair, reasonable wear and tear excepted. The Lessor's City Manager or his designee acting alone or in concert with the District Engineer, upon discovery of any hazardous conditions on the Leased Premises that presents an immediate threat to health and/or danger to life or property, will so notify Lessees and will require that the affected part or all of the Leased Premises be closed to the public until such condition is corrected and the danger to the public eliminated. If the condition is not corrected within a reasonable time specified by the City Manager, the City Manager will have the option to: (1) correct the hazardous conditions and collect the cost of repairs from the Lessees; or (2) terminate this Lease. For any such action, Lessees and its assign or sublessees shall have no claim for damages against the United States, the City of The Colony, Texas, or any of their officials, officers, agents, or employees. 11.02 Damage or Destruction - Repair. (1) In case of any damage to or destruction of the buildings, structures and equipment on the Leased Premises, or any part thereof, Lessees will promptly give written notice thereof to Lessor, generally describing the nature and extent of such damage and/or destruction. (2) In case of any damage to or destruction of the buildings, structures and equipment on the Leased Premises, or any part thereof, Lessees, whether or not the insurance proceeds, if any, payable on account of such damage and/or destruction shall be sufficient for such purpose, at Lessees' sole cost, risk and expense will promptly commence and complete the restoration, repair and replacement of said buildings, structures, and equipment as nearly as possible to their value, condition and character immediately prior to such damage and/or destruction, with such alterations therein and additions thereto as may be approved in writing by Lessor (hereinafter sometimes referred to as the "Restoration"). (3) All insurance proceeds, if any, payable on account of such damage to or destruction of the buildings, structures and equipment on the Leased Premises shall be payable to and held by Lessees; provided, however, that any time there is a lien on the leasehold estate complying with the provisions of Article 9 hereof said insurance, at Lessees' option, may contain 15 a loss payable clause in favor or any mortgages or trustee in connection with any such mortgage or lien under the terms of which any proceeds will be payable solely to such mortgagee or trustee, and such mortgagee or trustee shall be required to comply with all of the terms and conditions of the use of any such insurance proceeds set forth herein. Lessees, or any such mortgagee or trustee, shall give to Lessor prompt written notice of the payment to Lessees, mortgagee or trustee of any such insurance proceeds and the amount of such proceeds. (4) All insurance proceeds received by Lessees on account of any damage to or destruction of the Leased Premises or any buildings, structures and equipment on the Leased Premises, or any part thereof, shall be used to pay the cost of Restoration. Lessees shall provide to Lessor, upon Lessor's written request, records and documents sufficient to reasonably establish to Lessor that the insurance proceeds have been used for the purpose of Restoration. (5) Lessor shall have the right to commence or complete Restoration if (a) Lessor has given Lessees thirty (30) days prior written notice requesting the commencement of Restoration or that Lessees diligently proceed to the completion of Restoration and (b) if Lessees during such thirty (30) day period does not so commence or proceed to diligently complete Restoration. In such event, Lessees shall promptly pay to Lessor all such insurance proceeds for the purpose of commencing or completing the Restoration, and Lessees shall pay any deficiency if such proceeds are not sufficient for Restoration. 11.03 Mechanic's Liens. (1) Lessees shall not suffer or permit any mechanic's liens or other liens to be filed against the fee of the Leased Premises nor against Lessees' leasehold interest in the land nor any buildings or improvements on the Leased Premises by reason of any work, labor, services or materials supplied or claimed to have been supplied to Lessees or to anyone holding the Leased Premises or any part thereof through or under Lessees. (2) If any such mechanic's lien or materialmen's liens shall be recorded against the Leased Premises, or any improvements thereon, Lessees shall cause the same to be removed or, in the alternative, if Lessees in good faith desires to contest the same, Lessees shall be privileged to do so, but in such case Lessees hereby agrees to provide a surety bond, or other collateral, acceptable to Lessor and to indemnify and save Lessor harmless from all liability for damages occasioned thereby and shall, in the event of a judgment of foreclosure on said 16 mechanic's or materialman's liens, cause the same to be discharged and removed prior to the execution of such judgment. 11.04 Restoration Upon Termination/Expiration of Lease. Upon the expiration or earlier termination of this Lease, Lessees shall vacate the Leased Premises, remove all of Lessees' equipment, removable fixtures and other personal property from the Leased Premises, and, if Lessees, without obtaining any approvals from Lessor or the Corps required by this Lease, has made any unauthorized improvements to the Leased Premises ("Unauthorized Improvements"), Lessees shall at the option of the Lessor and the Corps, restore the Leased Premises so as to remove the Unauthorized Improvements. Lessees shall be required to repair any damage to the Leased Premises caused by the removal of any property from the Leased Premises in a good and workmanlike manner at Lessees' sole cost and expense. If at the time of the expiration or termination of this Lease there exists on the Leased Premises a building for which a certificate of occupancy is required by the City of The Colony and for which a certificate of occupancy has not been issued (and which has not be unreasonably withheld by the City), Lessees shall, at Lessor's request and at Lessees' sole cost and expense, promptly remove or cause the removal of such building and restore to a good condition the premises on which any such building or part thereof was situated. If Lessees shall fail or neglect to remove said personal property or perform any restoration required by the preceding provisions of this Article 10, then, at the option of the Lessor, Lessor may cause such restoration to be performed and said personal property shall either become the property of the Lessor without compensation therefor, or the Lessor may cause the personal property to be removed, and no claim for damages against the Lessor or its officials or agents shall be created by or made an account of such removal and restoration work. Lessees shall also pay Lessor on demand any sum which may be expended by Lessor in performing such restoration of the Leased Premises. The provisions of this Section 11.04 shall survive the termination or expiration of this Lease. ARTICLE 12. MAINTENANCE Lessees shall have the responsibility for proper maintenance of the roadways, structures, buildings, infrastructure, grounds, shoreline, buoys, docks, and all other amenities associated with the Leased Premises, identified but not limited to, maintenance standards outlined in the Developer's Agreement. 17 ARTICLE 13. WATER RIGHTS AND USAGE 13.01 Grant. Lessor hereby grants to Lessees, during the Initial Term of this Lease, all rights which Lessor has or may have, by virtue of the Corps Lease or otherwise, to the use of surface water and ground water on the Leased Premises. No additional water wells shall be drilled or additional pumping equipment installed without the prior written approval of Lessor and the District Engineer and other approvals as may be required. The existing well and pumping equipment are exempted and such well and equipment shall remain on leased premises upon termination of this lease. Such approval by Lessor shall not be unreasonably withheld or delayed. Title to all permitted pumping equipment not removed by Lessees prior thereto shall pass to Lessor upon termination of this Lease. 13.02 City of Dallas Water. In addition to the grant set forth in Section 12.01 above, Lessor hereby agrees to use Lessor's best efforts to assist Lessees to the extent reasonably possible to obtain permission of the City of Dallas, Texas, and/or any other governmental body or agency having jurisdiction thereof, to withdraw untreated water from Lake Lewisville for irrigation purposes on the Leased Premises upon the most favorable rates charged by the City of Dallas. It is agreed, however, that in the exercise of its "best efforts", Lessor shall not be required to make any expenditures and all costs related to obtaining such permission to withdraw untreated water, and all costs for water actually withdrawn after obtaining such permission, shall be borne by and be the sole responsibility of Lessees. 13.03 Certain Maintenance Obligations. Lessees shall be responsible for construction, maintenance and repair of the water systems and equipment utilized in the Leased Premises, and, except as to the potable, treated water to be provided under Section 12.03 above, shall further be responsible for insuring compliance with all state and local laws governing water quality and testing. ARTICLE 14. ACCESS TO PROPERTY Lessor and Lessees mutually agree that land access to the Leased Premises shall be designated and shown on Exhibit "B" attached hereto and made a part hereof. Lessees, through its employees, shall have sole responsibility for allowing access to the Leased Premises by unlocking access gates each morning and shall further have sole responsibility for securing the Leased Premises by locking any access gate each evening (if applicable) during any period of time when Leased Premises are not open and available to the public, except those who have 18 permitted access, or when the Leased Premises are not regularly patrolled by local police or private security guards. Lessees further agree that Lessor's police department and fire department shall be provided with duplicate keys to the access gates for use in obtaining access to the Leased Premises for security patrols and in emergency situations. Designated representatives from the local governmental authorities and the Corps shall have the right to enter upon the Leased Premises for the purpose of inspection of the land and facilities. ARTICLE 15. INSURANCE AND INDEMNIFICATION 15.01 Insurance. (1) During the period of construction of any building or other improvement on the Leased Premises and at all times thereafter during the Lease Term, Lessees shall keep (or cause each operator of Facilities on the Leased Premises to keep) the improvements insured against loss or damage by fire, lightning and other risks, with extended coverage endorsement or its equivalent in such responsible insurance companies, having a minimum Best's Rating of A or better and licensed to do business in the State of Texas, as Lessees or such operator shall select. Insurance must be in amounts not less than eighty percent (80%) ofthe full insurable value of the buildings and other improvements. The phrase "full insurable value" as used herein means actual replacement value at the time of such loss. Upon written request by Lessor and not more often than once every two (2) years, such replacement value shall be determined by a qualified appraiser, a copy of whose findings shall be submitted to Lessor, and thereafter, proper adjustment in the limits of insurance coverage shall be effected based upon such findings. All such insurance shall be issued by companies as required by any such mortgagee or trustee, or if not so required, reasonably acceptable to any such mortgagee or trustee. (2) Lessees, at their own expense, shall provide and keep in force during this Lease (or shall cause each operator of Facilities on the Leased Premises to provide and keep in force with respect to such Facilities), commercial general liability and property damage liability insurance covering Lessees, such operator and any of Lessees' and such operator's contractors, premises operations liability, and contractual liability, covering but not limited to, the liability assumed under the indemnification provisions of this Lease, with one or more responsible insurance companies having a minimum Best's rating of A and duly authorized to transact business in Texas, with limits of liability for bodily injury, death and property damage of not less than $1,000,000. Coverage must be on a "occurrence" basis. 19 (3) Lessees agree, at their own cost and expense, to obtain and maintain (or to cause each operator of Facilities on the Leased Premises to obtain and maintain) workers' compensation insurance during the term of this Lease and, at all times when demolition, excavation or construction work is in progress on the Leased Premises, construction liability insurance with responsible insurance companies having a minimum Best's rating of A and duly authorized to transact business in Texas, with limits of One Million Dollars ($1,000,000) for injury to or the death of any person and One Hundred Thousand Dollars ($100,000) property damage, protecting Lessees, as well as such other person or persons as Lessees may designate, against any and all liability for injury to or the death of any person or damage to or destruction of any property in any way arising out of such demolition, excavation, construction, or other work. (4) All Insurance policies required pursuant to the provisions of this Article 15 may contain deductible amounts or self-insured retention amounts for liability and property and casualty loss, but not in excess of any amount equal to Fifty Thousand Dollars ($50,000) per policy. Lessees agree that if it does not keep, or cause to be kept, such insurance in full force and effect that Lessor may notice Lessees of such failure and if Lessees do not deliver to Lessor within ten (10) days after such notice policies or certificates, as may be requested by Lessor, showing all such insurance to be in full force and effect, Lessor may, at its option and without waiving any of its rights to terminate this Lease, take out all necessary insurance to comply with the provisions hereof and pay the premiums on the items specified in such notice and Lessees covenants thereupon on demand to reimburse and pay Lessor any amount so paid or expended in the payment of the insurance premiums required hereby and specified in the notices, with interest thereon at the Floating Rate (as defined in Section 5.02) from the date of such payment by Lessor until repaid by Lessees. (5) With respect to any Facilities, in the event that Lessees, or any operator of Facilities on the Leased Premises, is able to establish to the reasonable satisfaction of Lessor that, with respect to such Facilities, Lessees or such operator has a net worth greater than or equal to Five Million Dollars ($5,000,000.00), then as to such Facilities only, the policies of insurance required of Lessees or of such operator pursuant to the provisions of this Lease may contain deductible amounts or self-insured retention amounts for liability and property and casualty loss in an amount equal to Two Hundred Fifty Thousand Dollars ($250,000.00). With respect to the remainder of the Leased Premises not covered by any such Facilities, Lessees shall 20 be required to maintain insurance as set forth herein with the deductible amounts of self-insured retention amounts as are described in Section 15.01(4). Lessor acknowledges and agrees that current financial statements prepared by an independent firm of certified public accountants in accordance with generally accepted accounting principles which reflect a net worth of Five Million Dollars ($5,000,000.00) or more shall be reasonable satisfactory evidence for purposed of this Section 15.01(5). (6) All such policies of insurance shall (a) be issued by insurance companies reasonably acceptable to Lessor, (b) shall name Lessor, its officers, employees and agents as an additional insured or loss payee, as the case may be, (c) contain a waiver of subrogation endorsement in favor of Lessor, and (d) provide for at least thirty (30) days written notice to Lessor and to the Corps prior to cancellation, non-renewal or modification. Certified copies of all such policies shall be promptly delivered to Lessor and the Corps: provided, however, that Lessor and Corps, in their respective discretion and in lieu of certified copies of such policies, may permit the delivery of certificates of insurance together with the declaration page of such policies, along with the endorsement naming Lessor as an additional insured or loss payee, as the case may be. Lessor reserves the right to review the insurance requirements contained herein and to reasonably adjust coverages and limits when deemed necessary and prudent by Lessor. 15.02 INDEMNIFICATION. LESSEES AGREE TO INDEMNIFY LESSOR, ITS OFFICIALS, OFFICERS, EMPLOYEES AND AGENTS (TOGETHER, FOR PURPOSES OF THIS SECTION 15.02, "LESSOR") AND THE CORPS, ITS OFFICIALS, OFFICERS, EMPLOYEES, AND AGENTS (TOGETHER, FOR THE PURPOSES OF THIS SECTION 15.02, "CORPS") AGAINST, AND HOLD LESSOR AND THE CORPS HARMLESS FROM, ANY AND ALL LIABILITY, LOSS, COST, FEES, ACTIONS, CAUSES OF ACTION, LAWSUITS, JUDGMENTS, CLAIMS, DAMAGES (INCLUDING ALL CONSEQUENTIAL DAMAGES(, OR EXPENSE (INCLUDING ATTORNEY'S FEES AND COURT COSTS) FOR ANY INJURY TO OR THE DEATH OF ANY PERSON OR DAMAGE TO OR DESTRUCTION OF ANY PROPERTY RESULTING FROM OR BASED UPON, IN WHOLE OR IN PART, ANY ACT OR OMISSION OF, OR ANY ACT ARISING OUT OF THE USE AND OPERATION OF LEASED PREMISES BY, LESSEES, THEIR OFFICERS, EMPLOYEES, AGENTS, CONTRACTORS, SUBCONTRACTORS, OR INVITEES UNDER OR IN 21 CONNECTION WITH THIS LEASE, EXCEPT FOR ANY SUCH LIABILITY, LOSS, COST OR EXPENSE WHICH IS ATTRIBUTABLE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LESSOR OR THE CORPS, AS THE CASE MAY BE. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND ARE NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY THIRD PERSON OR ENTITY. THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE TERMINATION OR EXPIRATION OF THIS LEASE. ARTICLE 16. ASSIGNMENT AND SUBLEASE Lessees may not assign, sublet, or otherwise convey its leasehold estate in it entirety or any portion of the unexpired term thereof and may not assign, sublet or otherwise covey the Leased Premises or any portion of the same or all or any portion of any building or improvement erected, located or placed on the Leased Premises at any time and from time to time, without having first obtained the express written approval of Lessor and District Engineer, which approval shall not be umeasonably withheld or delayed. Any such assignment, subletting or conveyance shall be expressly subject to all the terms and provisions ofthis Lease. Lessees shall not assign, sublet or otherwise convey Lessees' leasehold interest or their rights and obligations hereunder without first obtaining a written agreement whereby each assignee or sublessee agrees to be bound by the terms and conditions of this Lease. No such assignment, subletting or other conveyance shall constitute a novation. In the event of the occurrence of an event of default while the Lease Premises are assigned or sublet, Lessor, in addition to any other remedies provided herein or by law, may at the Lessor's option, collect directly from such assignee or subtenant all rents or other sums becoming due under such assignment or subletting and apply such rents against any sums due to Lessor hereunder. No direct collection by Lessor from any such assignee or subtenant or any other set of circumstances shall release Lessees from the payment or performance of Lessees' obligations hereunder. For purposes of this Lease, any agreements between Lessees and any concessionaire for the provisions of food and refreshments on the Leased Premises shall not be deemed a violation of the provisions of this Article 16 or a default under this Lease. 22 ARTICLE 17. DEFAULT AND REMEDIES 17.01 Events of Default. Any of the following occurrences or acts shall constitute an event of default under this Lease: (a) if Lessees shall (i) default in making payment when due of any rent or any other amount payable by Lessees to Lessor hereunder or in keeping any insurance required hereunder in full force and effect; or (ii) fail to commence or complete the construction of any I improvements to the Leased Premises in accordance with any timetable which has been or may be agreed upon or a concept plan approved by Lessor; or (iii) following commencement of use and operation of the Leased I Premises, abandon the Leased Premises (failure to occupy and operate the Leased Premises for ten (10) consecutive days, for reasons other than because of adverse weather conditions, natural disaster or other force majeure reasons, shall be deemed an abandonment); and if such default shall continue as to subsection (i) above, for ten (10) days, or as to subsections (ii) and (iii) above for thirty (30) days, in each case after Lessor shall have given to Lessees, and any Lienholder as required by Section 9.02 above, written notice specifying such default and demanding that the same be cured, or, with respect to a default under subsections (ii) or (iii), if by reason of the nature thereof such default cannot be cured by the payment of money and cannot with due diligence by wholly cured within such period of thirty (30) days, if Lessees shall fail to proceed promptly to cure the same and thereafter prosecute the curing of such default with diligence, it being intended in connection with a default not susceptible of being wholly cured with due diligence within such period, that the time within which to cure the same shall be extended for such period as may be necessary to complete the curing of same with all due diligence, but in no event longer that one hundred eighty (180) days; or (b) if Lessees shall make a general assignment for the benefit of creditor, or shall file a petition in bankruptcy, or shall be adjudicated, bankrupt or insolvent, or shall file a petition seeking any reorganization, arrangement, composition readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, or shall file an answer admitting or shall fail reasonably to contest the material allegations of a petition filed 23 against it in any proceeding, or shall seek or consent or acquiesce in the appointment of any trustee, receiver or liquidator of Lessees or any material part oftheir properties; or (c) if, within ninety (90) days after commencement of any proceeding against Lessees seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such proceeding shall not have been dismissed, or within ninety (90) days after the appointment without the consent or acquiescence by Lessees, of any trustee, receiver or liquidator of Lessees or of any material part of their properties, such appointment shall not have been vacated; or (d) if a final judgment for the payment of money in any material amount in excess of One Million Dollars ($1,000,000.00) and which is not covered by any insurance insuring the interest of Lessees shall be rendered against Lessees, and within sixty (60) days after the entry thereof such judgment shall not have been discharged or execution thereof stayed pending appeal or if within sixty (60) days after the expiration of such stay, such judgment shall not have been discharged. 17.02 Remedies of Lessor. Upon the occurrence of any of the events of default described herein, which default remains uncured after the respective period set forth above, Lessor shall have the option to pursue anyone or more of the following remedies without notice or demand whatsoever: (a) Terminate this Lease, in which event Lessees shall immediately surrender the Leased Premises to Lessor. If Lessees fail to so surrender the Leased Premises, Lessor may, without prejudice to any other remedy which Lessor may have for possession of the Leased Premises or arrearages in rent, enter upon and take possession of the Leased Premises and expel or remove Lessees and any other person who may be occupying the Leased Premises or any part thereof, without being liable for prosecution or any claim for damages therefor. In such event, Lessees shall promptly pay to Lessor on demand an amount of loss and damages equal to the sum of the amounts of Minimum Rent that would have otherwise been payable by Lessees to Lessor in the two (2) years next following the date of termination. (b) Enter upon and take possessIOn of the Leased Premises without terminating this Lease and without being liable for prosecution or for any claim for damages therefor, and expel or remove Lessees and any other person who may be occupying the Leased 24 Premises or any part thereof, and Lessor may relet the Leased Premises and receive the rent therefor. (c) Enter upon the Leased Premises without terminating this Lease and without being liable for prosecution or for any claim for damages therefor, and do whatever Lessees is obligated to do under the terms of this Lease. Lessees agree to pay Lessor on demand for expenses which Lessor may incur in thus effecting compliance with Lessees' obligations under this Lease; provided, however, that Lessees' obligations to pay Lessor such expenses shall not exceed an amount equal to the sum of the amounts of Minimum Rent that would have otherwise been payable by Lessees to Lessor in the two (2) years next following Lessor's entrance upon the Leased Premises. Lessor shall not be liable for any damages resulting to Lessees from such action, whether cause by negligence of Lessor or otherwise. Pursuit of any of the remedies hereunder shall not preclude pursuit of any of the other remedies herein provided or any other remedies provided by law, nor shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to Lessor hereunder or of any damages accruing to Lessor by reason of the violations of any of the terms, conditions and covenants herein contained. ARTICLE 18. HISTORIC PRESERVATION Lessees shall not remove or disturb, or cause or permit to be removed or disturbed, any historical, archaeological, architectural or other cultural artifacts, relics, remains, or objects of antiquity. In the event such items are discovered on the Leased Premises, Lessees shall immediately notify Lessor and protect the site and the material from further disturbance until the Lessor gives clearance to proceed, which clearance shall not be unreasonably withheld or delayed. ARTICLE 19. ENVIRONMENTAL COVENANTS 19.01 Lessees covenant that (a) no toxic or hazardous substances, including, without limitation, asbestos and the group of organic compounds known as polychlorinated biphenyls (except such substances as are used in accordance with law), shall be generated, treated, stored or disposed of, or otherwise deposited in or located on, or released on or to the Leased Premises, including, without limitation, the surface and the subsurface waters of the Leased Premises, (b) Lessees will not engage in and will not permit any other party to engage in any activity on the Leased Premises which would cause (i) the Leased Premises to become a hazardous waste 25 treatment storage or disposal facility within the meaning of, or otherwise bring the Leased Premises within the ambit of, the Resource conservation and Recovery Act of 1975 ("RCRA"), 42 U.S.C. 6901, et seq., as amended, or any similar state law or local ordinance or other environmental law, (ii) a release or threatened release of a hazardous substance from or to the Leased Premises within the ambit of, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C. 9601-9657, as amended, or any similar state law or local ordinance or any other environmental law, or (iii) the discharge (except in accordance with applicable law) of pollutants or effluents into any water source or system, or the discharge (except in accordance with applicable law) into the air of any emissions, which would require a permit under the Federal Water Pollution Control Act, 33 U.S.C. 1252, et seq., or the Clean Air Act, 42 U.S.c. 7401, et seq., or any similar state law or local ordinance or any other environmental law, (c) Lessees will not permit any substance or conditions in or on the Leased Premises which might support a claim or causes of action under RCRA, CERCLA, or any other federal, state or local environmental statutes, regulations, ordinances or other environmental regulatory requirements, and (d) no other ground storage tank will be located on or under the Leased Premises, except as presently exists or is approved per this Lease. As used herein, the terms "hazardous substance" and "release" shall have the meanings specified in CERCLA, and the terms "solid waste" and "disposal" (or "disposed") shall have the meanings specified in RCRA; provided, in the event either CERCLA or RCRA is amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment, provided, further, to the extent that the laws of the State of Texas establish a meaning for such terms which is broader than that specified in either CERCLA or RCRA, such broader meaning shall apply. 19.02 In the event Lessees or Lessor is obligated by any applicable federal, state or local law, ordinance or regulation or otherwise directed by any governmental agency or authority, to clean up, remove or encapsulate or cause the clean up, removal, or encapsulation of any Hazardous Wastes and/or Hazardous Material or asbestos or material contain asbestos ("Asbestos") from the Leased Premises, the Lessees hereby guarantee to Lessor that the Lessees (i) shall promptly undertake to arrange for such clean up, removal and disposal in accordance with all governmental regulations, (ii) shall exercise their best efforts to insure that such clean up 26 and removal shall be conducted in a timely and diligent manner, and (iii) hereby assumes the costs and expense, including any fines, of such clean up and removal. 19.03 In the event that any lien is recorded or filed against the Leased Premises pursuant to any governmental regulations regarding Hazardous Materials, Hazardous Wastes, or Asbestos, Lessees hereby guarantee to Lessor that Lessees shall, not later than thirty (30) days following the filing of such lien, satisfy the claim and cause the lien thereunder to be discharge of record (whether by payment, bonding or as otherwise provided in Section 7.2 hereof). 19.04 In addition to the foregoing, Lessees shall protect, defend, indemnify and save harmless Lessor, and Lessor's officers, officials, agents, employees and representatives from and against all loss (including diminution in the value of the Leased Premises), cost, damage, liability, obligation, causes of action, fine, penalty or expense (including attorney's fees and expenses for investigation, inspection, removal, clean up, and remedial costs incurred to permit continued or resume normal operation of the Leased Premises), imposed upon or incurred by or asserted against Lessor, its officers, officials, employees or agents by reason of (i) the presence of any Hazardous Materials and/or Hazardous Wastes on, from, or affecting the Leased Premises or any other property or the presence of Asbestos on the Leased Premises; (ii) any personal injury (including wrongful death) or property damage or destruction (real or personal) arising out of or related to such Hazardous Wastes, Hazardous Materials or Asbestos; (iii) any lawsuit brought or threatened, settlement reached, or government order relating to such Hazardous Wastes, Hazardous Materials or Asbestos; or (iv) any violation of laws, orders, regulations, requirements, or demands of governmental authorities, which are based upon or in any way related to Hazardous Wastes, Hazardous Materials or Asbestos including, without limitation, the costs and expenses of any remedial action, attorney and consultant fees, investigation and laboratory fees, court costs, and litigation expenses. The above and foregoing obligation contained in this Section 19.04 shall only apply to any act or omission of Lessees or of Lessees' officers, principals, employees, agents, contractors, or subcontractors in connection with any loss (including diminution in the value of the Leased Premises), cost, damage, liability, obligation, causes of action, fine, penalty or expense (including attorney's fees and expenses for investigation, inspection, removal, clean up, and remedial costs incurred to permit continued or resume normal operations of the Leased Premises), imposed upon or incurred by or asserted 27 against Lessor, its officers, officials, agents or employees by reason of subparts (i) through (iv) of this Section 19.04. ARTICLE 20. SOIL AND WATER CONSERVATION Lessees shall maintain in a manner reasonably satisfactory to Lessor, all soil and water conservation structures that may be in existence upon the Leased Premises at the beginning of, or that may be constructed by Lessees during the term of this Lease, and Lessees shall take appropriate measures to prevent or control soil erosion within the Leased Premises. Any soil erosion occurring outside the Leased Premises resulting from the activities of Lessees shall be corrected by Lessees as reasonably directed by Lessor. ARTICLE 21. COVENANT AGAINST CONTINGENT FEES Lessees warrants that no person or selling agency has been employed or retained to solicit or secure this Lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee. For breach or violation of this warranty, Lessor, as its sole exclusive remedy, shall have the right to require Lessees to pay the full amount of such commission, percentage, brokerage, or contingent fee. ARTICLE 22. NATURAL RESOURCES Lessees shall cut no timber, conduct no mining operations, remove no sand, gravel or kindred substances from the ground, commit no waste of any kind, nor in any manner substantially change the contour or condition of the Leased Premises, except as may be authorized by Lessor and the Corps or as may be incidental to construction of improvements in accordance with plans and specifications approved by Lessor and the Corps. ARTICLE 23. ADVERTISING In connection with any advertising or promotional material relative to the Facilities, Lessees shall use reasonable good faith efforts to include therein the use of the service mark (logo) of the City of The Colony, Texas, or shall use the words "The Colony, Texas", or both. In connection therewith, Lessor does hereby grant to Lessees the personal and nontransferable right and license to use the service mark in the development and promotion of the Leased Premises. Whenever Lessees use the service mark in advertising or in any other manner in connection with the Leased Premises, Lessees shall clearly indicate Lessor's ownership of the service mark. The right granted to Lessees herein shall not be assigned, transferred or otherwise conveyed without Lessor's prior written consent. Lessees acknowledge Lessor's exclusive right, title, and interest 28 in and to the service mark and will not at any time do or cause to be done any act or thing contesting or in any way impairing or tending to impair any part of such right, title, and interest. In connection with the use of the service mark, Lessees shall not in any manner represent that it has any ownership in the service mark or registration thereof, and Lessees acknowledge that use of the service mark shall not create in Lessees' favor any right, title, or interest in or to the service mark, but all uses of the service mark by Lessees shall inure to the benefit of Lessor. Upon termination of this Lease in any manner provided herein, Lessees will cease and desist from all use of the service mark in any way (and will at Lessor's request deliver up to Lessor, or its duly authorized representatives, all material and papers upon which the service mark appears), and Lessees shall at not time adopt or use, without Lessor's prior written consent, any word or mark which is likely to be similar to or confusing with the service mark. ARTICLE 24. DISPUTE RESOLUTION If a dispute arises with respect to this Lease, the parties to the dispute shall first attempt to resolve it through direct discussions in the spirit of mutual cooperation. If the parties' attempts to resolve their disagreements through negotiation fail, the dispute shall be mediated by a mutually acceptable third-party to be chosen by the disputing parties within thirty (30) days after written notice by one of them demanding mediation. The disputing parties shall share the costs of the mediation equally. By mutual agreement, the parties may postpone mediation until each has completed some specified but limited discovery about the dispute. By mutual agreement, the parties may use a nonbinding form of dispute resolution other than mediation. Any nonbinding dispute resolution process conducted under this Article shall be confidential within the meaning of Sections 154.053 and 154.073 of the Texas Civil Practice and Remedies Code and any successor statute thereto. If neither a negotiated settlement nor mediated resolution is obtained within the time periods provided by this Article, the parties may pursue any available legal or equitable remedy; provided, however, that this Article shall not preclude Lessor from exercising any remedy available to Lessor under this Lease. 29 ARTICLE 25. COVENANTS AND WARRANTIES 25.01 Lessor's Power and Authority. Lessor hereby represents and warrants that it is the Lessees under a lease a lease between Lessor and the Corps and that, pursuant thereto, it has the full power and authority to enter into this Lease, subject to the Corps' right of approval of the terms set forth herein. Lessor further represents and warrants that Lessor shall not subject the Leased Premises to any encumbrances or liens, nor shall it subject this Lease to any encumbrances or liens, except those approved in writing by Lessees. 25.02 Lessees' Quiet Enioyment. Lessor covenants and agrees that Lessees, on paying the rent and other charges herein provided for and observing and keeping the covenants, conditions, and terms of this Lease on Lessees' part to be kept or performed, shall lawfully and quietly hold, occupy, and enjoy the Leased Premises during the term of this Lease without hindrance or molestation of Lessor or any other person claiming by, through or under Lessor. Provided Lessees are not in default (beyond the expiration of any applicable cure period) pursuant to the provisions of Section 17.01 of this Lease, Lessor shall pay and perform each of its obligation sunder the Corps Lease in a timely manner. 25.03 Certain Non-Discrimination Matters. Lessees covenant and agree that the Facilities to be constructed and operated on the Leased Premises shall be open to and for use by the general public and that Lessees, their assigns, sublessees or concessionaires shall not discriminate against any person or persons or exclude any persons from participation in and use of the Facilities or any other programs or activities conducted on the Leased Premises because of race, color, age, sex, handicap, national origin or religion. Lessees, by acceptance of this Lease, hereby gives assurances that Title VI of the Civil Rights Act of 1964 (Public Law 88-352) and all requirements imposed by or pursuant to the Directive of the Department of Defense (32) CFR Part 300 issued as Department of Defense Directive 5500.11.17 May 1971 will be complied with. 25.04 Compliance with Laws. Lessees covenant and agree that they shall comply with all laws, ordinances, rules and regulations of municipal, state, federal and other agencies or bodies, including, but not limited to, environmental laws, having jurisdiction thereof relating to the Leased Premises and the construction, use, condition or occupancy of any improvements on the Leased Premises and the use of all personal property used on the Leased Premises or in or related to the operation of any improvements thereon. Without limiting the foregoing, Lessees 30 expressly covenant and agree that all buildings and other improvements constructed on the Leased Premises shall be constructed in accordance with the building codes and regulation and inspection procedures imposed by Lessor on similar construction within Lessor's municipal boundaries. 25.05 First Right of Refusal. Lessees shall have first right of refusal for development or improvements to areas within Hidden Cove Park which were excluded from the initial Leased Premises. ARTICLE 26. GENERAL PROTECTIVE PROVISION 26.01 Relationship Between Parties. The relationship between Lessor and Lessees at all times shall remain solely that of landlord and tenant and not be deemed to be a partnership or joint venture. 26.02 Force Majeure. It is expressly understood and agreed that if commencement of construction of the Facilities or the completion of the same or the curing of any default (other than failure to pay rent, interest thereon, insurance premiums, or ad valorem taxes) or the performance of any other covenant, agreement, obligation or undertaking herein contained is delayed by reason of war, civil commotion, blight, flood, drought or other similar or dissimilar act of God, governmental restrictions, regulations or interferences, non-issuance of governmental permits or approvals (except for reasons caused by Lessees), fire or other casualty or any circumstances beyond Lessees' control or beyond the control of the party obligated or permitted under the terms hereof to do or perform the same, regardless of whether any such circumstance are similar to any of those enumerated or not, each party shall be excused from doing or performing the same during such period of delay. 26.03 No Waiver. No waiver by Lessor of any default or breach of any covenant, condition, or stipulation herein contained shall be treated as a waiver of any subsequent default or breach of the same or any other covenant, conditions or stipulation hereof. 26.04 Use Clause. Lessees agree not to use the Leased Premises or any building or improvement situated upon said Leased Premises, or any part thereof for any use or purpose in violation of any applicable law, regulation, or ordinance of the United States, the State of Texas or the City of The Colony, Texas, or other lawful authority having jurisdiction over the Leased Premises. 31 ARTICLE 27. SUBORDINATION TO CORPS LEASE~ NON-DISTURBANCE 27.01 Lease Subject to Corps Lease. (1) Lessor and Lessees mutually acknowledge and agree that this Lease, and the respective rights and obligations of Lessor and Lessees hereunder, is now and shall at all times hereafter be subject and subordinate to the terms and conditions of the Corps Lease. Lessor further agrees that in the event the Corps terminates the rights of the Lessor with respect to the Leased Premises under the terms of the Corps Lease, then Lessees have the right, if it is not then in default (beyond any period given to Lessees in this Lease to cure the default) pursuant to Section 17.01 of this Lease, to negotiate and contract directly with the Corps (with notice first to Lessor) as Lessees shall determine to be appropriate so as to preserve this Lease and/or Lessees' leasehold estate in the Leased Premises. Lessor further agrees that in the event of any proposed amendment, modification, extension or renewal of the Corps Lease, the terms of which may reasonably be contemplated to affect this Lease and/or Lessees, then Lessees have the right to participate with the City in connection with its negotiations with the Corps. Nothing contained in this Section 27.01 shall relieve Lessor of its obligations and covenants contained in Section 25.02. (2) Within one hundred and eight (180) days after the execution of this Lease or before, Lessor shall deliver to Lessees an agreement from the Corps to the effect that, so long as Lessees are not in default (beyond any period given Lessees to cure that default) under this Lease in the payment of rental or the performance of any of the other terms, covenants or conditions of this Lease on Lessees' part to performed: (a) That the Corps shall not, during the Initial Term of this Lease (subject to the earlier termination of the Corps Lease and periodic modifications, renewals and/or extensions thereof) interfere with Lessees' possession of the Leased Premises and Lessees' rights and privileges under this Lease, or disturb Lessees' occupancy of the Leased Premises. (b) The Corps shall not join or add Lessees as a party defendant in any action or proceeding for the purpose of terminating Lessees' interests and estate under this Lease because of any default by Lessor under the Corps Lease, provided, that Lessees shall join in the execution and delivery of any agreement to the effect that if the Corps shall successfully terminate the Corps Lease (or the same shall expire pursuant to its terms), or if the Corps shall succeed to the interests ofthe Lessor under this Lease (under any circumstance), Lessees shall be 32 bound to the Corps under all of the terms and conditions of this Lease for the balance of the Initial Term of this Lease remaining after that succession and Lessees will attorn to the Corps as its Lessor. (c) The Corps will notify the Lessees of any action the Corps takes to terminate the Corps Lease with the City of The Colony. ARTICLE 28. APPROVAL BY CORPS Lessor and Lessees hereby agree and acknowledge that this Lease and the terms and conditions set forth herein are subject to the review and approval of the Corps. Lessor and Lessees further agree and acknowledge that the respective rights and obligation of Lessor and Lessees are conditioned upon the Corps granting its approval to this Lease and all the terms and conditions set forth herein. Lessor and Lessees agree that in the event the Corps has failed to give its approval to this Lease within ninety (90) days after the date of execution, or if the Corps shall disapprove this Lease and no further avenues of appeal are available, either party may elect to terminate this Lease be giving at least ten (10) days prior written notice of termination to the other party. Unless the parties shall thereafter execute a new written agreement to the contrary, this Lease shall terminate on the date set forth in the notice and neither party shall thereafter have any further obligations to the other. ARTICLE 29. CONDEMNATION 29.01 If during the term of this Lease, any part of the Leased Premises shall be acquired or condemned by eminent domain for any public or quasi-public use or purpose, or sold to a condemning authority under threat of condemnation, and after such taking by or sale to said condemning authority the remainder of the Leased Premises is not susceptible to efficient and economic occupation and operation by Lessees, this Lease shall automatically terminate as of the date that said condemning authority takes possession of the Leased Premises. 29.02 If after such taking by or sale to said condemning authority the remainder of the Leased Premises is susceptible to efficient and economic occupation and operation by Lessees, this Lease shall not terminate but the rental due hereunder shall be adjusted equitably by agreement to the parties hereto. The rental adjustment called for herein shall not commence until said condemning authority actually takes possession of the condemned portion of the Leased Premises. 33 29.03 If this Lease is not terminated pursuant to Section 29.01, Lessees shall promptly upon receipt of the proceeds of the condemnation aware restore the improvements on the Leased Premises, and the condemnation proceeds to which Lessor and Lessees are entitled shall be awarded and paid first to cover the costs and expenses for restoring the remaining portion of the Leased Premises to a condition susceptible to efficient and economic occupation and operation by Lessees, and any remaining proceeds to which Lessor and Lessees are entitled shall be awarded and paid to Lessor and Lessees, as their interest may appear. Lessees may, but shall not be required to, expend funds in excess of the amount of any award it receives in order to restore the remaining portion of the Leased Premises to operation. If this Lease is terminated pursuant to Section 29.01, condemnation proceeds to which Lessor and Lessees are entitle shall be awarded and paid to Lessor and Lessees as their interests may appear. ARTICLE 30. MISCELLANEOUS 30.01 Delivery of rents and Notice. All rents and other sums, notices, demands, or requests from one party to another shall be personally delivered or sent by United States mail certified, or registered, return receipt requested, postage prepaid, to the addresses stated in this Section. If to Lessor: The City of The Colony 5151 North Colony Boulevard The Colony, Texas 75056-0008 Attn: City Manager With a copy to: Robert E. Hager Nichols, Jackson, Dillard, Hager & Smith, LLP 1800 Lincoln Plaza 500 North Akard Dallas, Texas 75201 If to Lessees: Marine Quest, Inc. Attn: Dwight and Marcel Bosworth 6060 South Stemmons Lake Dallas, Texas 75065 With a copy to: Kelley B. Hill Pennington, Hill & Baker, LLP 611 Main Street, Suite 100 Grapevine, Texas 76051 34 Notice shall be deemed to have been given (i) if by hand delivery, at the time of delivery, or (ii) if mailed, seventy-two (72) hours after the deposit of same in any United States mail post office box in the state to which the notice is addressed or ninety-six (96) hours after the deposit in any post office in other than the state to which the notice is addressed, postage paid, addressed as set forth above. The addresses and addressees for the purpose of this section may be changed by giving notice of such change in the manner herein provided for giving notice. Unless and until such written notice is received the last addresses and addressees stated by written notice, or provided herein if no written notice of change has been sent or received, shall be deemed to continue in effect for all purposes hereunder. 30.02 Parties Bound; Authority to Execute Lease. This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Lease. The undersigned officers and/or agents of the parties hereto are the properly authorized officials and have the necessary authority to execute this Lease on behalf of the parties hereto, and each party hereby certifies to the other that any necessary resolutions or other act extending such authority have been duly passed and are now in full force and effect. 30.03 Texas Law to Apply. This Lease shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performance in Denton County, Texas. Venue for any action hereunder shall be in Denton County, Texas. 30.04 Severability. In case of anyone or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Lease shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 30.05 Prior Agreements Superseded. This Lease constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. 30.06 Amendment. No amendment, modification or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto, and approved in writing by the District Engineer. 35 30.07 Rights and Remedies Cumulative. The rights and remedies provided by this Lease are cumulative and the use of anyone right or remedy by either party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law statute, ordinance, or otherwise. 30.08 Attorney's Fees. In the event Lessor or Lessee breach any of the terms of this Agreement whereby the party not in default employs attorneys to protect or enforce its rights hereunder and prevails, then the defaulting party agrees to pay the other party reasonable attorney fees so incurred by such other party. Lessee shall reimburse Lessor on demand for all reasonable fees and expenses (including attorney's fees) which it incurs in connection with the seeking and obtaining of permits and approvals required of Lessor hereunder. Lessor or its attorney shall advise Lessee in advance of incurring such fees or expenses, of the approximate amount of said fees or expenses and shall obtain Lessees approval for said expenditures before mcumng same. 30.09 Park Fees. Fee structure for entry, use of facilities, services and goods must be reasonable and comparable to rates charged at similar parks and facilities. Lessor shall be notified of fee structures on an annual basis no later than December 15\ for the upcoming calendar year. 30.10 Time of Essence. Time is of the essence in this Lease. 30.11 Further Documents. Lessor agrees that it will from time to time and at any reasonable time execute and deliver to Lessee such other and further instruments and assurances as Lessee may reasonably request approving, ratifying, and confirming this Lease and the leasehold estate created hereby and certifying that the same is in full force and effect and that no default on the part of the Lessees exist, or if any such default does exist, Lessor shall specify in said certificate such default. Without limiting the generality of the foregoing, Lessor acknowledges that Lessee intent to obtain third-party financing with respect to the construction, operation and maintenance of the Improvements on the Leased Premises and, in connection therewith, Lessor agrees with Lessee to in good faith consider amendments to, or modifications of, this Lease as may reasonably be required in order to facilitate all such third-party financing. IN WITNESS WHEREOF, the parties have caused this Lease to be executed in multiple counterparts each of which shall have the full force and effect of any original, by their respective duly authorized representatives on the day and year first set forth above. 36 EXECUTED in duplicate originals this th~ of J? r]~ . 20Q4.;;- ,/ CITY: CITY OF THE COLONY, TEXAS By: gk~ <"/ ~ DALE CHEATHAM, CITY MANAGER Arn:t. ..,. ByL/..~AJ.pJ~~ CHRISTIE WILSON, CIT SECRETARY ~ O~ s;--- EXECUTED in duplicate originals this the .ltL day of , 200ij. DEVELOPER MARINE QUEST - HIDDEN COVE, L.P. By its General Partner: MARINA QUEST, INC. ~~;~ Title: 0, (7, 38 Marine Quest I City of The Colony Ground Lease Agreement Attachments /'0)-02-1994 16::;3 CI,( CF THE CQCNy P.32 -6 v\. '+ I(A \I . x. dQI ~%OJI 7InD JIOH8 an "., 'rlCI COLOn' ocroUD UU BEDlG a tract of land ~ituatad in the following surveys in Denton County, Texas: (1) B.B.B.. C.R.R. Co. survey, ADstract No. 179, (2) B.B.B.~ C.R.R. CO. Survey, ADstract No. 182, (3) B.B.B.~ C.R.R. Co. survey, Abstract No. 170, (4) W.R. Clark SUrvey, Abst:r3.C1: No. 317, (5) F.M. Grace SUrvey, Abs1::ract No. 469, (6) G.W. Grace SUrvey, Abst:'act No. 490, (7) Williaa Loving survey, Absract No. 147, (S) A. King SUrvey, ADstract No. 707, (9) A.W. Rog-ers ~, Abstract No. 1114, (10) J.B. Perry-Survey, AhstractNo. 1058, (ll) C. c. lUng SUrvey, Abstract No. 720, and kleinq more particularly described as follows: BEcnmDlG at an interior southwest corner o~ an Annexation by the City of The Colony as described in Ordinance No. J79, dated November 2, 1985, said point being on the east line of said Abstract NO. 179 and vest line of Abstract No. 171; THENCE South alonq the west line of said Annexation ordinance No. 379, passinq at 378 ~eet the southwest corner of said Annexation described by Ordinance No 379 and the northvest corner of an Annexation of the City of The Colony described by ordinance No. 275 as tile<! in VolUJlle 1357, Page 62 of the Deed. Rei:orc1s of Denton County, Texas (DRDC"l') and continuing alonq the welSt line of said Ordinance No. 275 at taeal distance of 655.2 feet to a point at the Flood Control Pool Elevation of 529 feet NGVD; THENCE westerly alonq the meander 01' said 529 toot pool elevation and the south side 01' Hackberry creek approximately 21,563 feet to a point on a northwesterly extont of WynnewOOd Peninsula; THENCE Wast, 2,3" teet, crossinq the meander at Hackberry creek to a point on the Aid 529 toot elevation within the south boundary of Lake Levisville state Park (formerly HaCkberry Park); '!'BENeS Wes~ and North a,long the meander at' said 529 toot pool elevation and the southerly and westerly extent o~ said Lake Lewisville State Park, approx:ilu.tely 25,425 feet to a point on the most northerly north line of said take Lewisville State Park, said point beinq South 89 dQq. "2 min. East, 364.05 teet from Monument R-18; THENCE along the north and eas~ lines of said Lake Lawisville State Park as tollows: South 89 deq. 42 min. East, 108S.65 teet to a corner located at .!!onUlllent R-17; South 0 deq. 53 min. West, 1320.6 teet to a corner located at Honwaent R-16; South 89 deq. 29 min. East, 2595.3 teet to a corner located at Xonument R-15j North 34 deq. 32 JIlin . East, 405 teet to a corner located at Monument E-40l-2-#12j North 54 deg. 16 lIlin. East, 865.0 feet to a corner located at Monument E-~01-2-#11j South 9 deg. OS ~~. West, 430.0 teet to a corner located at Konument E-"Ol-2-#10i JDF\AHEXI094.wP\103194 1 ern br TH!: COt.OlfY r'I'l. ----.._ ,,'- JI /1 1'(JV--g2-1994 16:31 CITY CF :nE aJ..()<< P.03 South 70 dec.J. 29 lain. x..t, BOO.O teet to a corner located at Kl)nu-'tt: E-401-2-#9i South 27 deq. 02 lain. weat:, 747.5 teet to a corner located a1: JfanUJI.ent B-401-2-18; South 35 deq. 17 -.in. West, 766.2 teet "to a C:O~ located at xonuaene E-401-2-#7; South '5 ~. 5.1 JUn. West, 632.0 t..t to a corner located at Hanaaent B-4Ql-2-/6; South 72 deq. 15 .in. East, 443.23 teet to a corner located at MCnu.ent B-401-2-/5; Borth 56 deq. 10 lllin. East, 260.U teet to a corner located at KOnuaent 2-401-2-/4; !forth 86 deq. 01 JdJt. ~t, 341.90 teet to the lIOst: southerly northeast corner ot aa,icl Lake Levi.$ville state Park; TRUCS South 0 dect. 13 1Ilin. West, passinq at 340.5 teet KonUlllent R- 13, a total cli.at:ance ot n4. 0 teat to th.e said 529 toot Pool Elevation ; 'l'BERCE easterly a.lcmq th. aeander ot said 529 toot: pool elevation and the north side ot lfac:kber:y Creek a dia-eanc. ot 5,542 te.t ta a point on the said vest line ot Annexation ()rr'fh'2~4 110. 319; THENCE alonq th.e said vest line otAnnexation ordJ.nance No. 379 as tallows: South 7 deq. 59 ai.n. 33 see. East, 737.32 teet; South 46 d8q. 35 JIlin. 04 s.c. West, 1071 teet; t South 78 deq. 57 ain. 04 sec. East, 676 teet to the PLACE OF BEaDmDlC and c:ont:aiDinq 1,135.4 acres at land, .ore or less. ...... .. '. ~r\~~4...\~03194 2 cr.rr or ~ c:ar.oerr - '-, A h ex }{, b;--r il~( LAND DESCRIPTION BEING a 428-acre parcel of land situated in the B.B.B. & C.R.R. Co. Survey, Abstract No. 179, B.B.B. & C.R.R. Co. Survey, Abstract No. 182, B.B.B. & C.R.R. Co. Survey, Abstract No. 170, F.M. Grace Survey, Abstract 469, William H. Clark Survey, Abstract 317, G.W. Grace Survey, Abstract 490, William Loving Survey, Abstract 747, A. King Survey, Abstract 707, A.W. Rogers Survey, Abstract 1114, J.H. Perry Survey, Abstract 1058, and C.C. Survey, Abstract 720 Denton County, Texas, said tract being a portion of the tract of land in Annexation by the City of The Colony as described in Ordinance 379, dated November 2, 1985, said tract being more particularly described as follows; BEGINNING, at a Corps of Engineers monument found having Texas Coordinates of X = 2,173,307.95 feet, Y = 533,993.35 feet NAD 27 Texas North Central Zone, and being in the West, right-of-way of Hackberry Creek Park Road ( a 100 foot wide right-of-way); said point being in the north line of the remainder of a tract of land acquired by the United States of America from Maud S. McEntire by Declaration of Taking, filed September 16, 1952, in condemnation proceedings (Civil No. 805), in District Court of the United States for the Eastern District of Texas, Sherman Division and designated as Tract E-401-2 for the Garza-Little Elm Reservoir, said point being the southeast corner of a tract of land described in Special Warranty Deed from Sunset Pointe I, L TO to One Hackberry Creek L TO PIS recorded in County Clerk Instrument No. 2004-118302 of the Real Property Records of Denton County, Texas; Said point being in the north line of said Annexation by the City of The Colony; THENCE, South 89 degrees, 57 minutes, 42 seconds East, with the said north line of said Annexation by the City of The Colony, for a distance of 100.00 feet to a point in the East, line of said Hackberry Creek Park Road; said point being the southwest corner of Saratoga, Section One, an addition to Denton County, Texas according to the plat recorded in Cabinet C, Page 35 of the Plat Records of Denton County, Texas, said point being the southwest corner of Lot 1 C, Replat of Tract No.1, Saratoga, Section One, an addition to Denton County, Texas according to the plat recorded in Cabinet K, Page 316 of the Plat Records of Denton County, Texas; THENCE, South 21 degrees, 43 minutes, 17 seconds East, departing said East, line of Hackberry Creek Park Road, for a distance of 107.70 feet; THENCE, South 00 degrees, 04 minutes, 48 seconds West, for a distance of 245.39 feet to a point at the beginning of a tangent curve concave to the northeast, with radius of 140.00 feet, a central angle of 59 degrees, 38 minutes, 45 seconds, on a chord of which bears South 29 degrees, 44 minutes, 34 seconds East, for a distance of 139.25 feet; THENCE, in a southeasterly direction, along a said curve, through an arc length of 145.74 feet to a point at the beginning of a compound curve concave to the northeast, with radius of 310.00 feet, a central angle of 36 degrees, 27 minutes, 55 seconds, on a chord of which bears South 77 degrees, 47 minutes, 54 seconds East, for a distance of 193.98 feet; Page 1 of 7 December 27,2004 THENCE, in a southeasterly direction, along a said curve, through an arc length of 197.30 feet to a point at the beginning of a reverse curve concave to the southwest with radius of 80.00 feet, a central angle of 146 degrees, 33 minutes, 36 seconds, on a chord of which bears South 22 degrees, 45 minutes, 03 seconds East, for a distance of 153.24 feet; THENCE, in a southeasterly direction, along a said curve, through an arc length of 204.64 feet; THENCE, South 05 degrees, 04 minutes, 20 seconds East, for a distance of 70.00 feet; THENCE, South 88 degrees, 42 minutes, 17 seconds East, for a distance of 159.70 feet; THENCE, South 82 degrees, 20 minutes, 14 seconds East, for a distance of 238.58 feet to a point at the beginning of a tangent curve concave to the north with radius of 300.00 feet, a central angle of 38 degrees, 28 minutes, 32 seconds, on a chord of which bears North 78 degrees, 25 minutes, 31 seconds East, for a distance of 197.69 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 201.46 feet; THENCE, North 59 degrees, 11 minutes, 15 seconds East, for a distance of 119.01 feet; THENCE, North 15 degrees, 09 minutes, 40 seconds West, for a distance of 212.77 feet; THENCE, North 00 degrees, 17 minutes, 26 seconds West, for a distance of 447.16 feet to a point in a south line of aforementioned Saratoga, Section One; THENCE, easterly and northeasterly with the southerly boundary of said Saratoga, Section One the following three courses; 1. South 89 degrees, 57 minutes, 42 seconds East, for a distance of 642.30 feet; 2. North 34 degrees, 47 minutes, 33 seconds East, for a distance of 404.51 feet; 3. North 54 degrees, 11 minutes, 58 seconds East, for a distance of 65.43 feet to a Corps of Engineers monument found having Texas Coordinates of X = 2,176,663.40 feet, Y = 534,138.59 feet NAD 27 Texas North Central Zone, and being in a westerly line of Saratoga, Section Two, an addition to Denton County, Texas according to the plat recorded in Cabinet C, Page 36 of the Plat Records of Denton County, Texas; THENCE, easterly and westerly with the southerly boundary of said Saratoga. Section One the following nine courses 1. South 09 degrees, 26 minutes, 28 seconds West, for a distance of 429.79 feet; Page 2 of 7 December 27,2004 2. South 70 degrees, 25 minutes, 22 seconds East, for a distance of 799.95 feet; 3. South 27 degrees, 06 minutes, 17 seconds West, for a distance of 746.92 feet; 4. South 35 degrees, 17 minutes, 45 seconds West, for a distance of 766.02 feet to a Corps of Engineers monument found having Texas Coordinates of X = 2,175,880.61 feet, Y = 532,848.69 feet NAD 27 Texas North Central Zone; 5. South 65 degrees, 47 minutes, 39 seconds West, for a distance of 632.12 feet to a Corps of Engineers monument found having Texas Coordinates of X = 2,175,304.13 feet, Y = 532,589.54 feet NAD 27 Texas North Central Zone; 6. South 72 degrees, 19 minutes, 21 seconds East, for a distance of 443.30 feet; 7. North 56 degrees, 07 minutes, 39 seconds East, for a distance of 260.00 feet; 8. North 85 degrees, 58 minutes, 39 seconds East, for a distance of 315.00 feet; 9. South 00 degrees, 26 minutes, 34 seconds West, passing at a distance of 339.80 feet the southwest corner of Lot 9, Block 3 of said Saratoga, Section Two, then continuing for an additional distance of approximately 306 feet, for a total distance of approximately 646 feet to a point at the conservation water elevation of 522 feet. THENCE, southerly, westerly and northerly with the conservation water elevation of 522 feet, approximately 33,750 feet; THENCE, South 89 degrees, 45 minutes, 00 seconds East, departing said water conservation line, passing at a distance of approximately 42 feet a point from which a 5/8-inch iron rod set in concrete with 3-inch aluminum cap stamped "Survey Marker - Do Not Disturb - Dan 2" having Texas Coordinates of X = 2,167,750.58 feet, Y = 532,862.11 feet NAD 27 Texas North Central Zone bears North 00 degrees, 15 minutes, 00 seconds East, a distance of 108.10 feet from said point, then continuing for an additional distance of approximately 2133 feet, for a total distance of approximately 2175.00 feet to a 5/8-inch iron rod set in concrete with 3-inch aluminum cap stamped "Survey Marker - Do Not Disturb - Dan 1" having Texas Coordinates of X = 2,169,883.00 feet, Y = 532,744.72 feet NAD 27 Texas North Central Zone THENCE, North 00 degrees, 15 minutes, 00 seconds East, for a distance of approximately 1437 feet to a point at the conservation water elevation of 522 feet. THENCE, easterly northerly with the conservation water elevation of 522 feet, approximately 975 feet to a point; THENCE, North 68 degrees, 34 minutes, 59 seconds East, departing said water conservation line, for a distance of approximately 360 feet; Page 3 of 7 December 27,2004 THENCE, South 20 degrees, 39 minutes, 16 seconds East, for a distance of 491.64 feet; THENCE, South 00 degrees, 15 minutes, 00 seconds West, for a distance of 1075.00 feet; THENCE, South 57 degrees, 45 minutes, 00 seconds East, for a distance of 108.69 feet to a point at the beginning of a nontangent curve concave to the northwest with radius of 390.00 feet, a central angle of 30 degrees, 45 minutes, 30 seconds, on a chord of which bears North 50 degrees, 56 minutes, 01 seconds East, for a distance of 206.86 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 209.36 feet to a point at the beginning of a reverse curve concave to the southeast with radius of 1200.00 feet, a central angle of 13 degrees, 34 minutes, 52 seconds, on a chord of which bears North 42 degrees, 20 minutes, 42 seconds East, for a distance of 283.78 feet; THENCE, in a northeasterly direction, along a said curve to the left through an arc length of 284.44 feet to a point at the beginning of a compound curve concave to the southeast with radius of 325.00 feet, a central angle of 15 degrees, 00 minutes, 12 seconds, on a chord of which bears North 56 degrees, 38 minutes, 14 seconds East, for a distance of 84.86 feet; THENCE, in a northeasterly direction, along a said curve to the left through an arc length of 85.10 feet; THENCE, North 64 degrees, 08 minutes, 20 seconds East, for a distance of 14.00 feet to a point at the beginning of a nontangent curve concave to the northwest with radius of 18.00 feet, a central angle of 98 degrees, 19 minutes, 25 seconds, on a chord of which bears North 14 degrees, 54 minutes, 47 seconds East, for a distance of 27.24 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 30.89 feet to a point at the beginning of a reverse curve concave to the southeast with radius of 25.00 feet, a central angle of 101 degrees, 49 minutes, 24 seconds, on a chord of which bears North 16 degrees, 39 minutes, 46 seconds East, for a distance of 38.81 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 44.43 feet to a point at the beginning of a reverse curve concave to the northwest with radius of 10.00 feet, a central angle of 67 degrees, 34 minutes, 28 seconds, on a chord of which bears North 33 degrees, 47 minutes, 14 seconds East, for a distance of 11.12 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 11.79 feet; Page 4 of 7 December 27. 2004 THENCE, North, for a distance of 33.14 feet to a point at the beginning of a nontangent curve concave to the northeast, with radius of 225.00 feet, a central angle of 07 degrees, 41 minutes, 07 seconds, on a chord of which bears North 20 degrees, 33 minutes, 12 seconds West, for a distance of 30.16 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 30.18 feet to a point at the beginning of a reverse curve concave to the southwest, with radius of 10.00 feet, a central angle of 77 degrees, 44 minutes, 56 seconds, on a chord of which bears North 55 degrees, 35 minutes, 06 seconds West, for a distance of 12.55 feet; THENCE, in a northwesterly direction, along a said curve, through an arc length of 13.57 feet to a point at the beginning of a reverse curve concave to the southeast with radius of 50.00 feet, a central angle of 260 degrees, 43 minutes, 40 seconds, on a chord of which bears North 35 degrees, 54 minutes, 15 seconds East, for a distance of 76.19 feet; THENCE, in a northwesterly, northerly, easterly and southeasterly direction, along a said curve, through an arc length of 227.53 feet; THENCE, South 13 degrees, 45 minutes, 00 seconds East, for a distance of 47.06 feet to a point at the beginning of a tangent curve concave to the northeast, with radius of 175.00 feet, a central angle of 12 degrees, 55 minutes, 00 seconds, on a chord of which bears South 20 degrees, 12 minutes, 30 seconds East, for a distance of 39.37 feet; THENCE, in a southeasterly direction, along a said curve, through an arc length of 39.45 feet; THENCE, South 65 degrees, 30 minutes, 00 seconds East, for a distance of 37.30 feet; THENCE, South 31 degrees, 45 minutes, 00 seconds East, for a distance of 15.00 feet; THENCE, South 62 degrees, 45 minutes, 00 seconds East, for a distance of 17.00 feet; THENCE, North 70 degrees, 00 minutes, 00 seconds East, for a distance of 385.00 feet; THENCE, North 12 degrees, 30 minutes, 00 seconds West, for a distance of 420.00 feet; THENCE, North 77 degrees, 30 minutes, 00 seconds East, for a distance of 155.00 feet to a point at the beginning of a tangent curve concave to the south, with radius of 1250.00 feet, a central angle of 22 degrees, 30 minutes, 00 seconds, on a chord of which bears North 88 degrees, 45 minutes, 00 seconds East, for a distance of 487.73 feet; THENCE, in an easterly direction, along a said curve, through an arc length of 490.87 feet; Page 5 of 7 December 27, 2004 THENCE, South 80 degrees, 00 minutes, 00 seconds East, for a distance of 479.95 feet to a point at the beginning of a tangent curve concave to the southwest, with radius of 750.00 feet, a central angle of 13 degrees, 15 minutes, 00 seconds, on a chord of which bears South 73 degrees, 22 minutes, 30 seconds East, for a distance of 173.06 feet; THENCE, in an easterly direction, along a said curve, through an arc length of 173.44 feet; THENCE, South 23 degrees, 15 minutes, 00 seconds West, for a distance of 420.00 feet; THENCE, South 66 degrees, 45 minutes, 00 seconds East, for a distance of 155.00 feet; THENCE, North 23 degrees, 15 minutes, 00 seconds East, for a distance of 20.00 feet; THENCE, South 66 degrees, 45 minutes, 00 seconds East, for a distance of 37.00 feet; THENCE, South 23 degrees, 15 minutes, 00 seconds West, for a distance of 20.00 feet; THENCE, South 66 degrees, 45 minutes, 00 seconds East, for a distance of 275.00 feet to a point at the beginning of a tangent curve concave to the northeast, with radius of 625.00 feet, a central angle of 21 degrees, 15 minutes, 00 seconds, on a chord of which bears South 77 degrees, 22 minutes, 30 seconds East, for a distance of 230.48 feet; THENCE, in an easterly direction, along a said curve, through an arc length of 231.80 feet; THENCE, North 16 degrees, 30 minutes, 00 seconds East, for a distance of 25.00 feet; THENCE, North 58 degrees, 00 minutes, 00 seconds East, for a distance of 110.00 feet; THENCE, North 30 degrees, 00 minutes, 00 seconds East, for a distance of 25.00 feet; THENCE, North 00 degrees, 45 minutes, 00 seconds East, for a distance of 75.00 feet; THENCE, North 17 degrees, 00 minutes, 00 seconds East, for a distance of 47.00 feet; THENCE, North 00 degrees, 30 minutes, 00 seconds East, for a distance of 25.00 feet to a point at the beginning of a nontangent curve concave to the southeast, with radius of 25.00 feet, a central angle of 73 degrees, 31 minutes, 26 seconds, on a chord of which bears North 36 degrees, 45 minutes, 43 seconds East, for a distance of 29.92 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 32.08 feet to a point at the beginning of a reverse curve concave to the northwest with radius of 25.00 feet, a central angle of 73 degrees, 26 minutes, 38 seconds, on a chord of Page 6 of 7 December 27,2004 which bears North 36 degrees, 48 minutes, 07 seconds East, for a distance of 29.90 feet; THENCE, in a northeasterly direction, along a said curve, through an arc length of 32.05 feet; THENCE, North 00 degrees, 04 minutes, 48 seconds East, for a distance of 25.00 feet; THENCE, North 29 degrees, 55 minutes, 12 seconds West, for a distance of 30.00 feet; THENCE, North 00 degrees, 04 minutes, 48 seconds East, for a distance of 78.07 feet; THENCE, North 15 degrees, 04 minutes, 48 seconds East, for a distance of 96.59 feet; THENCE, North 00 degrees, 04 minutes, 48 seconds East, for a distance of 345.00 feet; THENCE, North 24 degrees, 32 minutes, 38 seconds East, for a distance of 108.66 feet to the POINT OF BEGINNING. CONTAINING: 428 acres of land, more or less. This document was prepared under 22 T AC 663.21, does not reflect the results of an on the ground survey, and is not to be used to conveyor establish interest in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. Page 7 of 7 December 27,2004 I: a - a. .! -- lit U I: .- ~ 1i~ ... s: ~ J~ 3 I ~(+ - .... u ~ ~ - ::. t: ~ -Y II <J . ... > s:: ~ 0 ~ - .0 ill a 0 -C~ .; .. u i ~ \ \ //r-.... /j I r I I I I I J I I I I "' r "1 r -, r"---. r"l r-~l (---, r--r r-'1 !, ..... ... I . I f B_ -~" _'II ID - IS lIS .. - - - -- .. .. .. I!!!I!II I!M E~l-Iljj/T llC If . , t ?-.. .. - .. ~ . LEASE NO.DACW63-1-00-0816 REPLACES LEASE NO. DACW63-1-95-0584v" REPLACES LEASE NO. DACW63-1-96-0725/ REPLACES LEASE NO. DACW63-1-96-0726~ REPLACES LEASE NO. DACW63-1-97-0677/ DEPARTMENT OF THE ARMY FOR PUBLIC PARK AND RECREATIONAL PURPOSES LEWISVILLE LAKE, TEXAS DENTON COUNTY, TEXAS THIS LEASE is made on behalf of the United States, between the SECRETARY OF THE ARMY, hereinafter referred to as the Secretary, and the City of The Colony, Texas, a political subdivision of the State of Texas, hereinafter referred to as the Lessee, WITNESSETH: That the Secretary, by authority of Title 16, United States Code, Section 460d, and for the consideration hereinafter set forth, hereby leases to the Lessee, the property identified as Hidden Cove Park (600 acres), Stewarts Creek North park{65 acres), Stewarts Creek South Park{65 acres), Wynnwood Park (849.18 acres), and Eastvale Park (55 acres) in Exhibit A, B, C, 0, D-l, 0-2 and E attached hereto and made a part hereof, containing approximately 1,634.18 acres of land, hereinafter referred to as the premises, for public park and recreational purposes. THIS LEASE is granted subject to the following conditions: 1. TERM Said premises are hereby leased for a term of fifty (50 ) years, beginning April 1, 2000 and ending March 31, 2050. 2. CONSIDERATION The consideration for this lease is the operation and maintenance of the premises by the Lessee for the benefit of the United States and the general public in accordance with the conditions herein set forth. 3. NOTICES All correspondence and notices to be given pursuant to this lease shall be addressed, if to the Lessee, to the Ci ty of The Colony, 5151 North Colony Blvd., The Colony, Texas 75056-1219; and, if to the United States, to the District Engineer, ATTN: thief, Real Estate Division, Post Office Box 17300, Fort WOrth, Texas 1 - . . . 67102-0300, or as may from time to time otherwise be directed by the parties. Notice shall be deemed to have been duly given if and when enclosed in a properly sealed envelope, or wrapper, addressed as aforesaid, and deposited, postage prepaid, in a post office regularly maintained by the United States Postal Service. 4 . AUTHORIZED REPRESENTATIVES Except as otherwise specifically provided, any reference herein to "Secretary of the Army," "District Engineer," "said officer" or "Lessor" shall include their duly authorized representatives. Any reference to "Lessee" shall include sublessees, assignees, transferees, concessionaires, and its duly authorized representatives. 5 . DEVELOPMENT PLANS The Lessee shall be guided by an annual Plan of Operation and Maintenance in furtherance of the Lessee's implementing Plan of Recreation Development and Management attached as Exhibit F,G,H,H- 1,H-2,H-3,H-4,H-S,I, and I-1. No later than April 1 of each year the Lessee will submit the annual Plans to be mutually agreed on between the Lessee and the District Engineer. Such annual plans shall include but is not limited to the following: a. Plans for management, maintenance and development activities to be undertaken by the Lessee and any sublessees. b. Reports of the management, maintenance and development accomplishments of the Lessee for the preceding year. c. Reports on any significant modification of policies or procedures which are planned for the following year as well as those implemented in the preceding year. d. Minor modifications to the Development Plans. Major modifications are to be accomplished by amendment to the Plans before proceeding to implement any changes in the development or management of the leased premises. e. Budget of the Lessee for carrying out all activities for the upcoming year. f. Personnel to be used in the management of the leased premises. g. Annual certification that all water and sanitary systems on the premises have been inspected and comply with Federal, state and local standards. Lessee will also provide a statement of compliance with the Rehabilitations Act and the Americans with Disabilities Act, as required in the condition on NON- DISCRIMINATION, noting any deficiencies and providing a schedule for correction. The use and occupation of the premises shall be subj ect to the general supervision and approval.. of the Distrlct . I .- . Engineer. During the term of the lease, the District Engineer will notify the Lessee of any updates to the existing project Master Plan affecting the premises and the Lessee may provide comments. 6. STRUCTURES AND EQUIPMENT The Lessee shall have the right, during the term of the lease, to erect such structures and to provide such equipment upon the premises as may be necessary to furnish the facilities and services authorized. Those structures and equipment shall be and remain the property of the Lessee, except as otherwise provided in the Condition on RESTORATION. However, no structures may be erected or altered upon the premises unless and until the type of use, design, and proposed location or alteration thereof shall have been approved in writing by the District Engineer. The District Engineer may require the Lessee, upon the completion of each of the proposed developments to furnish complete "as built" construction plans for all facilities. 7. APPLICABLE LAWS AND REGULATIONS a. The Lessee shall comply with all applicable Federal laws and regulations and with all applicable laws, ordinances, and regulations of the state, county, and municipality wherein the premises are located, including, but not limited t.o, those regarding construction, health, safety, food service, water supply, sanitation, use of pesticides, and licenses or permits to do business. The Lessee shall make and enforce such regulations as are necessary and within its legal authority in exercising the privileges granted in this lease, provided that such regulations are not inconsistent with those issued by the Secretary of the Army or with the provisions of 16 U.S.C. 3 460d. b. The Lessee will provide an annual certification that all water and sanitary systems on the premises have been inspected and comply with Federal, state and local standards. The Lessee will also provide a statement of compliance with the Rehabilitations Act and the Americans with Disability Act, as required in the condition on NON-DISCRIMINATION, noting any deficiencies and providing a schedule for correction. 8. CONDITION OP PREMISES The Lessee acknowledges that it has inspected the premises, knows its condition, and understands that the same is leased without any representations or warranties whatsoever and without obligation on the part of the United States to make any alterations, repairs, or additions thereto. 9. FACILITIES AND SERVICES The Lessee shall provide the facilities and services as agreed upon in the Development Plans ref~r:red to in the Condition on DEVELOPMENT PLANS either directly or through subleases or L - . . . . concession agreements that have been reviewed and accepted by the District Engineer. These subleases or agreements shall state: (1) that they are granted subject to the provisions of this lease; and (2) that the agreement will not be effective until the third party activities have been approved by the District Engineer. The Lessee will not allow any third party activities with a rental to the Lessee or prices to the public which would give the third party an undue economic advantage or circumvent the intent of the Development Plan. The rates and prices charged by the Lessee or its sub-lessees or concessionaires shall be reasonable and comparable to rates charged for similar goods and services by others in the area. The use of sub-lessees and concessionaires will not relieve the Lessee from the primary responsibility for ensuring compliance with all of the terms and conditions of this lease. 10. TRANSFERS, ASSIGNMENTS, SUBLEASES a. Without prior written approval of the District Engineer, the Lessee shall neither transfer nor assign this lease nor sublet the premises or any part thereof, nor grant any interest, privilege, or license whatsoever in connection with this lease. b. The Lessee will not sponsor or participate in timeshare ownership of any structures, facilities, accommodations, or personal property on the premises. The Lessee will not subdivide nor develop the premises into private residential development. 11. FEES Fees may be charged by the Lessee for the entrance to or use of the premises or any facilities, however, no user fees may be charged by the Lessee or its sub-lessees for use of facilities developed in whole or part with federal funds if a user charge by the Corps of Engineers for the facility would be prohibited under law. 12 . ACCOUNTS, RECORDS AND RECEIPTS All monies received by the Lessee from operations conducted on the premises, including, but not limited to, entrance, admission and user fees and rental or other consideration received from its concessionaires, may be utilized by the Lessee for the administration, maintenance, operation and development of the premises. Beginning 5 years from the date of this lease and continuing at 5-year intervals, any such monies not so utilized or programmed for utilization within a reasonable time shall be paid to the District Engineer. The Lessee shall establish and maintain accurate records and accounts and provide an annual statement of receipts and expenditures to the District Engineer. Annual or weekly entrance fees not collected on the Project, which also are honored at other recreational areas operated by the Lessee, are excluded from this requirement. The District Engineer shall have the right to perform audits or to require the Lessee to audit the records and accounts of the Lessee, third party concessionaires and . -- , . sub-lessees, in accordance with auditing standards and procedures promulgated by the American Institute of Certified Public Accountants or by the state, and furnish the District Engineer with the results of such an audit. 13. PROTECTION OF PROPERTY The Lessee shall be responsible for any damage that may be caused to property of the United States by the activities of the Lessee under this lease and shall exercise due diligence in the protection of all property located on the premises against fire or damage from any and all other causes. Any property of the United States damaged or destroyed by the Lessee incident to the exercise of the privileges herein granted shall be promptly repaired or replaced by the Lessee to the satisfaction of the District Engineer, or, at the election of the District Engineer, reimbursement may be made therefor by the Lessee in an amount necessary to restore or replace the property to a condition satisfactory to the District Engineer. 14. RIGHT TO ENTER AND FLOOD The right is reserved to the United States, its officers, agents, and employees to enter upon the premises at any time and for any purpose necessary or convenient in connection with Government purposes; to make inspections; to remove timber or other material, except property of the Lessee; to flood the premises; to manipulate the level of the lake or pool in any manner whatsoever i ~n - and/or to make any other use of the land as may be necessary in connection with project purposes, and the Lessee shall have no claim for damages on account thereof against the United States or any officer, agent, or employee thereof. lS. LIGHTS, SIGNALS AND NAVIGATION There shall be no unreasonable interference with navigation by the exercise of the privileges granted by this lease. If the display of lights and signals on any work hereby authorized is not otherwise provided for by law, such lights and signals as may be prescribed by the Coast Guard or by the District Engineer shall be installed and maintained by and at the expense of the Lessee. 16. INSURANCE a. At the commencement of this lease, the Lessee, unless self- insured, and its sub-lessees and concessionaires at the commencement of operating under the terms of this lease as third parties, shall obtain from a reputable insurance company or companies contracts of liability insurance. The insurance shall provide an amount not less than that which is prudent, reasonable and consistent with sound business practices or a minimum Combined Single Limit of $1,000,000, whichever is greater, for any number of persons or claims arising from anyone incident with respect to bodily injuries or death resulting therefrom., property damage, or both, suffered, or alleged to have been suffered by any person or t - . . . persons, resulting from the operations of the Lessee, sub-lessees and concessionaires under the terms of this lease. The Lessee shall require its insurance company to furnish to the District Engineer a copy of the policy or policies, or, if acceptable to the District Engineer, certificates of insurance evidencing the purchase of such insurance. The District Engineer shall have the right to review and revise the amount of minimum liability insurance required. b. The insurance policy or policies shall specifically provide protection appropriate for the types of facilities, services and products involved; and shall provide that the District Engineer be given thirty (30) days notice of any cancellation or change in such insurance. I c. In the event the Lessee is self-insured, the Lessee shall certify such self-insurance in writing in the minimum amount specified above to the District Engineer. The Lessee's insurance status shall not eliminate the requirement for its sub-lessees and concessionaires to have insurance from a reputable insurance carrier as set out above. d. The District Engineer may require closure of any or all of the premises during any period for which the Lessee and/or its sub- lessees and concessionaires do not have the required insurance coverage. 17 . RESTORATION On or before the expiration of this lease or its termination by the Lessee, the Lessee shall vacate the premises, remove the property of the Lessee, and restore the premises to a condition satisfactory to the District Engineer. If, however, this lease is revoked, the Lessee shall vacate the premises, remove said property therefrom, and restore the premises to the aforesaid condition within such time as the District Engineer may designate. In either event, if the Lessee shall fail or neglect to remove said property and restore the premises, then, at the option of the District Engineer, said property shall either become the property of the United States without compensation therefor, or the District Engineer may cause the property to be removed and no claim for damages against the United States or its officers or agents shall be created by or made on account of such removal and restoration work. The Lessee shall also pay the United States on demand any sum which may be expended by the United States after the expiration, revocation, or termination of this lease in restoring the premises. 18. NON-DISCRIMINATION a. The Lessee shall not discriminate against any person or persons or exclude them from participation in the Lessee's operations, programs or activities conducted on the leased premises, because of race, color,. religion, . sex, age, handicap,.or national origin. The Lessee will comply with the Americans with , ~ . Disabilities Act and attendant Americans with Disabilities Act Accessibility Guidelines (ADAAG) published by the Architectural And Transportation Barriers Compliance Board. b. The Lessee, by acceptance of this lease, is receiving a type of Federal assistanc~ and, therefore, hereby gives assurance that it will comply with the provisions of Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. ~ 2000d) ; the Age Discrimination Act of 1975 (42 U.S.C. ) 6102); the Rehabilitation Act of 1973, as amended (29 U.S.C. ~ 794); and all requirements imposed by or pursuant to the Directive of the Department of Defense (32 CFR Part 300) issued as Department of Defense Directives 5500.11 and 1020.1, and Army Regulation 600-7. This assurance shall be binding on the Lessee, its agents, successors, transferees, sub-lessees and assignees. 19. SUBJECT TO EASEMENTS This lease is subject to all existing easements, easements subsequently granted, and established access routes for roadways and utilities located, or to be located, on the premises, provided that the proposed grant of any new easement or route will be coordinated with the Lessee, and easements will not be granted which will, in the opinion of the District Engineer, interfere with developments, present or proposed, by the Lessee. The Lessee will not close any established access routes without written permission of the District Engineer. 20. SUBJECT TO MINERAL INTERESTS This lease is subject to all outstanding mineral interests. As to federally owned mineral interests, it is understood that they may be included in present or future mineral leases issued by the Bureau of Land Management (BLM) , which has responsibility for mineral development on Federal lands. The Secretary will provide lease stipulations to BLM for inclusion in such mineral leases that are designed to protect the premises from activities that would interfere with the Lessee's operations or would be contrary to local laws. 21. COMPLIANCE, CLOSURE, REVOCATION AND RELINQUISHMENT a. The Lessee and/or any sub-lessees or licensees are charged at all times with full knowledge of all the limitations and requirements of this lease, and the necessity for correction of deficiencies, and with compliance with reasonable requests by the District Engineer. This lease may be revoked in the event that the Lessee violates any of the terms and conditions and continues and persists in such non-compliance, or fails to obtain correction of deficiencies by sub-lessees or licensees. The Lessee will be notified of any non-compliance, which notice shall be in writing or shall be confirmed in writing, giving a period of time in which to correct the non-compliance. Failure to satisfactorily correct any substantial or persistent non-compliance within the specified time . is grounds for closure of all or part of the premises, temporary , -. . suspension of operation, or revocation of the lease, after notice in writing of such intent. Future requests by the Lessee to extend the lease, expand the premises, modify authorized activities, or assign the lease shall take into consideration the Lessee's past performance and compliance with the lease terms. b. This lease may be relinquished by the Lessee by giving one (1) year prior written notice to the District Engineer in the manner prescribed in the Condition on NOTICES. 22 . HEALTH AND SAFETY a. The Lessee shall keep the premises in good order and in a clean, sanitary, and safe condition and shall have the primary responsibility for ensuring that any sub-lessees and concessionaires operate and maintain the premises in such a manner.. b. In addition to the rights of revocation for non-compliance, the District Engineer, upon discovery of any hazardous conditions on the premises that presents an immediate threat to health and/or danger to life or property, will so notify the Lessee and will require that the affected part or all of the premises be closed to the public until such condition is corrected and the danger to the public eliminated. If the condition is not corrected within the time specified, the District Engineer will have the option to: (1) correct the hazardous conditions and collect the cost of repairs from the Lessee; or, (2) revoke the lease. The Lessee and its assignees or sub-lessees shall have no claim for damages against the United States, or any officer, agent, or employee thereof on account of action taken pursuant to this condition. 23. PUBLIC USE No attempt shall be made by the Lessee, or any of its sub- lessees or concessionaires, to forbid the full use by the public of the premises and of the water areas of the project, subject, however, to the authority and responsibility of the Lessee to manage the premises and provide safety and security to the visiting public. 24. PROHIBITED USES a. The Lessee shall not permit gambling on the premises or install or operate, or permit to be installed' or operated thereon, any device which is illegal, or use the premises or permit them to be used for any illegal business or purpose. There shall not be conducted on or permitted upon the premises any activity which would constitute a nuisance. b. As an exception, some games of chance, such as raffles, games and sporting events, may be conducted by nonprofit organizations, under special use permits iSSUed .i.n conjunction with special events, if permissible by state and local law. Any reauest . - . to conduct such activities must be submitted in writing to the District Engineer. c. In accordance with state and local laws and regulations, the Lessee may sell, store, or dispense, or permit the sale, storage, or dispensing .of beer, malt beverages, light wines or other intoxicating beverages on the premises in those facilities where such service is customarily found. Bar facilities will only be permitted if offered in connection with other approved activities. Advertising of such beverages outside of buildings is not permitted. Carry out package sales of hard liquor is prohibited. 25. NATURAL RESOURCES The Lessee shall cut no timber, conduct no mining operations, remove no sand, gravel, or kindred substances from the ground, commit no waste of any kind, nor in any manner substantially change the contour or condition of the premises, except as may be authorized under and pursuant to the Development Plan described in the Condition on DEVELOPMENT PLANS herein. The Lessee may salvage fallen or dead timber; however, no commercial use shall be made of such timber. Except for timber salvaged by the Lessee when in the way of construction of improvements or other facilities, all sales of forest products will be conducted by the United States and the proceeds therefrom shall not be available to the Lessee under the provisions of this lease. 26. DISPUTES CLAUSE a. Except as provided in the Contract Disputes Act of 1978 (41 U.S.C. 601-613) (the Act) , all disputes arising under or relating to this lease shall be resolved under this clause and the provisions of the Act. b. "Claim," as used in this clause, means a written demand or written assertion by the Lessee seeking, as a matter of right, the payment of money in a sum certain, the adjustment of interpretation of lease terms, or other relief arising under or relating'to this lease. A claim arising under this lease, unlike a claim relating to that lease, is a claim that can be resolved under a lease clause that provides for the relief sought by the Lessee. However, a written demand or written assertion by the Lessee seeking the payment of money exceeding $50,000 is not a claim under the Act until certified as required by subparagraph c. (2) below. c. (1) A claim by the Lessee shall be made in writing and submitted to the District Engineer for a written decision. A claim by the Government against the Lessee shall be subject to a written decision by the District Engineer. (2) For Lessee claims exceeding $50,000, the Lessee shall submit with the claim a certification that: . (i) The claim is made in good faith; (ii) Supporting data are accurate and complete to the best of the Lessee's knowledge and belief; and (iii) The amount requested accurately reflects the lease adjustment for which the Lessee believes the Government is liable. (3) If the Lessee is an individual, the certificate shall be executed by that individual. If the Lessee is not an individual, the certification shall be executed by: (i) A senior company official in charge at the Lessee's location involved; or (ii) An officer or general partner of the Lessee having overall responsibility of the conduct of the Lessee's affairs. d. For Lessee claims of $50,000 or less, the District Engineer must, if requested in writing by the Lessee, render a decision within 60 days of the request. For Lessee-certified claims over $50,000, the District Engineer must, within 60 days, decide the claim or notify the Lessee of the date by which the decision will be made. e. The District Engineer's decision shall be final unless the Lessee appeals or files a suit as provided in the Act. f. At the time a claim by the Lessee is submitted to the District Engineer or a claim by the Government is presented to the Lessee, the parties, by mutual consent, may agree to use alternative means of dispute resolution. When using alternate dispute resolution procedures, any claim, regardless of amount, shall be accompanied by the certificate described in paragraph c. (2) of this clause, and executed in accordance with paragraph c. (3) of this clause. g. The Government shall pay interest on the amount found due and unpaid by the Government from (1) the date the District Engineer received the claim (properly certified if required), or (2) the date payment otherwise would be due, if that date is later, until the date of payment. Simple interest on claims shall be paid at the rate, fixed by the Secretary of the Treasury, as provided in the Act, which is applicable to the period during which the District Engineer receives the claim, and then at the rate applicable for each 6-month period as fixed by the Treasury Secretary during the pendency of the claim. h. The Lessee shall proceed diligently with the performance of the lease, pending final resolution of any request for relief, claim, appeal, or action arising under the lease, and comply with any decision of the District Engineer. 27. ENVIRONMENTAL PROTECTION a. Within the limits of their respective legal powers, the . - , . parties to this lease shall protect the project against pollution of its air, ground, and water. The Lessee shall comply promptly with any laws, regulations, conditions or instructions affecting the activity hereby authorized, if and when issued by the Environmental Protection Agency, or any Federal, state, interstate or local governmental agency having jurisdiction to abate or prevent pollution. The disposal of any toxic or hazardous materials within the leased area is specifically prohibited. Such regulations, conditions, or instructions in effect or prescribed by the Environmental Protection Agency, or any Federal, state , interstate or local governmental agency, are hereby made a condition of this lease. The Lessee shall require all sanitation facilities on boats moored at the Lessee's facilities, including rental boats, to be sealed against any discharge into the lake. Services for waste disposal, including sewage pump-out of watercraft, shall be provided by the Lessee as appropriate. The Lessee shall not discharge waste or effluent from the premises in such a manner that the discharge will contaminate streams or other bodies of water or otherwise become a public nuisance. b. The Lessee will use all reasonable means available to protect the environment and natural resources, and where damage nonetheless occurs from the lessee's activities, the Lessee shall be liable to restore the damaged resources. c. The Lessee must obtain approval in writing from the District Engineer before any pesticides or herbicides are applied to the premises. 28. PRELIMINARY ASSESSMENT SCREENING A Preliminary Assessment Screening (PAS) documenting the known history of the property with regard to the storage, release or disposal of hazardous substances thereon is attached hereto and made a part hereof as Exhibit J. Upon expiration, revocation or termination of this lease, another PAS shall be prepared which will document the environmental condition of the property at that time. A comparison of the two assessments will assist the District Engineer in determining any environmental restoration requirements. Any such requirements will be completed by the lessee in accordance with the condition on RESTORATION. 29. HISTORIC PRESERVATION The Lessee shall not remove or disturb, or cause or permit to be removed or disturbed, any historical, archaeological, architectural or other cultural artifacts, relics, remains, or objects of antiquity. In the event such items are discovered on the premises, the Lessee shall immediately notify the District Engineer and protect the site and the material from further Disturbance until the District Engineer gives clearance to proceed. 30. SOIL AND WATER CONSERVATION The Lessee. .shall maintain in a manner satisfactory to the . . . District Engineer, all soil and water conservation structures that may be in existence upon said premises at the beginning of, or that may be constructed by the Lessee during the term of, this lease, and the Lessee shall take appropriate measures to prevent or control soil erosion within the premises. Any soil erosion occurring outside the premises resulting from the activities of the Lessee shall be corrected by the Lessee as directed by the District Engineer. 31. TRANSIENT USE a. Camping, including transient trailers or recreational vehicles, at one or more campsites for a period longer than thirty (30 ) days during any sixty (60) consecutive day period is prohibited. The Lessee will maintain a ledger and reservation system for the use of any such campsites. b. Occupying any lands, buildings, vessels or other facilities within the premises for the purpose of maintaining a full- or part-time residence is prohibited, except for employees residing on the premises for security purposes, if authorized by the District Engineer. 32. COVENANT AGAINST CONTINGENT FEES The Lessee warrants that no person or selling agency has been employed or retained to solicit or secure this lease upon an agreement or understanding for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or bona fide established commercial or selling agencies maintained by the Lessee for the purpose of securing business. For breach or violation of this warranty, the United States shall have the right to annul this lease without liability or, in its discretion, to require the Lessee to pay, in addition to the lease rental or consideration, the full amount of such commission, percentage, brokerage, or contingent fee. 33. OFFICIALS NOT TO BENEFIT No Member of or Delegate to Congress or Resident Commissioner shall be admitted to any share or part of this lease or to any benefits to arise therefrom. However, nothing herein contained shall be construed to extend to any incorporated company if the lease be for the general benefit of such corporation or company. 34. MODIFICATIONS This lease contains the entire agreement between the parties hereto, and no modification of this agreement, or waiver, or consent hereunder shall be valid unless the same be in writing, signed by the parties to be bound or by a duly authorized representative; and this provision shall apply to this clause as well as all other conditions of this lease. . . 35. DISCLAIMER This lease is effective only insofar as the rights of the United States in the premises are concerned; and the Lessee shall obtain such permission as may be required on account of any other existing rights. It is understood that the granting of this lease does not eliminate the necessity of obtaining any Department of the Army permit which may be required pursuant to the provisions of Section 10 of the Rivers and Harbors Act of 3 March 1899 (30 Stat. 1151; 33 U.S.C. 3 403), or Section 404 of the Clean Water Act (33 U. S.C. 3 1344) . 36. ADDITIONAL CONDITIONS a. This lease supercedes Lease Numbers DACW63-1-95-0584, DACW63-1-96-0725, DACW63-1-96-0726, and DACW63-1-97-0677, which will be terminated upon execution of this lease. b. No structures or facilities will be constructed or placed on the lease premises, by the lessee or sublessee(s), without the approval of the Commander, Fort Worth District. IN WITNESS WHEREOF I have hereunto set myha~ by autho~tY/direction of the Secretary of the Army this /~ ~ day of 'l . , .?- .PoCl . Division THIS LEASE is also executed by the Lessee this 3eD day of ~~ ' c!)Ooo . OF THE rOLONY, TEXAS " ,oQ: ,)(. L~n~ , . . CERTIFICATION I, ~rn /l !//CJ:::'S , certify that I am the d r SCt!,etTI1J:Y' of the City of The Colony, Texas, that w: '-'-IFlm M /l!4.//.H)AI;:;- who signed this lease on behalf of the Lessee was thenl1?~~~. of the City of The Colony, Texas, and that said lease was duly signed for and on behalf of said City by the authority of its governing body and within the s~~~t~ ~~ ~ Exhibit "0" Amenities I lNumber I IDescription! (Original) 1 Office Building- Entrance area 1 Maintenance BUilding and storage yard 1 Concession Building 1 Conference Center wI kitch., Ig. group rm., fireplace, restrms. 1 Boat Ramp (3 lane) 1 Baseball Field wI backstop 3 Open Air Group Pavilions 69 Picnic Tables (day-use areas) 50 RV Campsites wI elect., water hookups, picnic table, fire ring 6 Primitive Campsites (no facilities) 24 Screened Shelters (east loop) wI elect. and water 14 Screened Shelters (Conf. Ctr. loop) wI elect. & water 6 Public Restroom Buildings (ADA) - wI shower facilities (4) - ADA shower facility (1) - Restroom only (1) 1 Fish Cleaning Station 1 RV Sewer Dump Station 4 Horseshoe Pit Areas 3 Volleyball Courts 4 Playgrounds 1 Hiking Trail (3 miles) 2 Residences (1 Park Superv., 1 Police Officer) 1 Elevated Water Tower (30,000 gal.) 1 Sewer Treatment Plant (16,000 gal.) 6 Grinder Pumps 14 Parking Lots (533 spaces total) 4 Miles of Asphalt Roadway 1 Courtesy Dock 1 Swim Beach Area 1 BoatlRV Storage Area (28 stalls) 7 Sewer Connections @ RV sites 10 Designated Tent Campsites 1 Park Storel Watercraft Rentals (concessionaire) O\O\r--Nl.Ol.OOO\~~O ~O\............r--OO\l.OO\OOON o r--~ \O~ \O~ N., ~~ O\~ ct1 ct1 ......~ O\~ 0\., U(-r')IJ)\oIJ)OO~OOOOO\\OO\ .................. N ~ N r-- ...!i4 -f-J '-4 - ~ V - U '-4~~ h\ t= ~ ~~O ill .g V ~ ~ ~ '-4 - ~ ~O-f-J ~~ V - .~ ~ ~ ~ ~ A ~ u '~...!i4 0 00 3 0 4--' ~ ~~~ ~P=l g~f-4~ '.- Cl...!i4P-tu~P=l ~ Sf-4 e e-- ~ u~~~~~ ~5v~ .- E~"d 0::;;> ~VJNo .-S: ~ t Ooc;~:: 0I7..o00~"';;l v .., l> V -f-J 0\ l.O l.O l.O - +J ~~. ~~~r~ClOOON~N"""N~ _ en v ~~ ~ ~ ~ r-- c-' '-4 ~ ~ ~ ~ V ~ f-4 ~ ~ ~ ~ t= ~ t= t= ~~~ClCl~Cl ~ ~ ~~~~.E.E~.ES~e~ "o:::4~~ooo.9oo~o~ ~ u U ~ ~~~ ~~ ~f-4 -. ~\O~O\OOooO\~N\O~\O vO\OO\O\OOO\OOO\O\OO\ ........0\00\0\0\0\0\0\0\00\ r~N~~~~~~......N~ Voo ..a..a ~ OJJOO ~~ L- ~\O~ 00 CO ~O\ r--;,~ 0. ~oo ~IJ) (J) ~ =+1:0~N~~ ~~~~~ () .+-IE N N l.O 0 ~ 00 l.O 0\ ...... IJ) o\o\lJ)\O~ NNN~IJ) C ~ 0\0\ 0\0\0\0\1J) (J) -0 .00\O~0\~~0(-r') ~ -- E 0\ ~ r-- 00 ~ "", N \0 r-- (-r') IJ) '-' h...l.OO\O\\OooO\~r--N~r-- :c ........U')\O~\O\O-<:NOr-- ~ Exhibit "F" Development Agreement