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HomeMy WebLinkAboutResolution No. 08-046 CITY OF THE COLONY, TEXAS RESOLUTION NO. o8--O-Ltlo A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING THE TERMS AND CONDITIONS OF THE ECONOMIC DEVELOPMENT FUNDING AGREEMENT BY AND BETWEEN THE COLONY ECONOMIC DEVELOPMENT CORPORATION AND THE CITY OF THE COLONY, WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT 1; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of The Colony ("City") desires to build and construct infrastructure consisting of water and wastewater lines and appurtenances into the Austin Ranch Development (the "Project") to promote economic development in the City; and WHEREAS, the development of the Austin Ranch Development benefits the City; and WHEREAS, The Colony Economic Development Corporation has agreed to assist the City in constructing a portion of the Project in an amount not to exceed $1.67 million dollars, which is a portion of the verifiable cost of the project; and WHEREAS, the City Council has determined it is in the best interest of the City to enter into the Economic Development Funding Agreement with The Colony Economic Development Corporation, which is attached hereto and incorporated herein as Exhibit "1," to further the objectives of the City and The Colony Economic Development Corporation by furthering economic development by constructing water and wastewater infrastructure. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS THAT: Section 1. That the terms and conditions of the Economic Development Funding Agreement by and between The Colony Economic Development Corporation and the City of The Colony, which is attached hereto and incorporated herein as Exhibit "1," for funding of a portion of the construction of water and wastewater lines and appurtenances in the Austin Ranch Development is hereby approved, and the City Manager is authorized to execute the same on behalf of the City. Section 2. This Resolution shall become effective immediately from and after its passage, as the law and charter in such cases provides. Page 1 of 2 PASSED, APPROVED and EFFECTIVE this 21st day of April. 2008. ATTESTr ~~lvWJ;.L [J 4" Christie Wilson, City Secretary, Page 2 of 2 ORIGINAL ST ATE OF TEXAS ~ ~ ~ ~ ECONOMIC DEVELOPMENT FUNDING AGREEMENT COUNTY OF DENTON This Economic Development Funding Agreement ("Agreement") is made by and between the City of The Colony, Texas ("City") and The Colony Economic Development Corporation ("TCEDC"), acting by and through their respective authorized officers. WITNESSETH: WHEREAS, the City promotes economic development opportunities including retention of economic development partners within the City of The Colony; and WHEREAS, the TCEDC supports the economic development opportunities within the jurisdiction of the City through the Economic Development Act of 1979, Section 4A; and WHEREAS, the City desires to build and construct infrastructure consisting of wastewater lines, water lines and appurtenances into the Austin Ranch Development (hereinafter "Developers"), south of State Highway 121 as depicted on Exhibit "A", which is attached hereto and incorporated herein (hereinafter, the "Project") which will promote economic development by providing basic infrastructure to Austin Ranch; and WHEREAS, Developers have requested that City participates in the construction of a portion of the Project to promote immediate development; and WHEREAS, construction of the Project will be to the benefit of the City, and the City desires to assist in paying for the Project in order to promote economic development of Austin Ranch; and WHEREAS, the TCEDC agrees to assist the City in constructing a portion of the Project in an amount not to exceed $1.67 million dollars, which is a portion of the actual verifiable cost of the Project; and WHEREAS, the City has determined that entering into this Agreement with the TCEDC will further the objectives of the City and TCEDC, and, will benefit economic development within the City; NOW THEREFORE, in consideration of the foregoing, and other valuable consideration the receipt and sufficiency of which are hereby acknowledged on the terms and conditions hereinafter set forth, the parties agree as follows: Fundinq Aqreement - Paqe 1 TM 25821.76.000 ARTICLE I Term This Agreement shall be effective on the date of execution hereof by the City and the TCEDC and shall continue until the parties have satisfied all of their respective obligations, unless sooner terminated as provided herein. ARTICLE II Agreement 2.1 Procurement. A. The City shall, in conformity with a Development Agreement with the Billingsley Corporation, cause the construction of the Project, which include performance and maintenance bonds. B. The CITY has entered into and approved such appropriate agreements necessary to construct the Project. 2.2 Construction. A. The City has obtained the appropriate right-of-way and shall provide construction oversight and manage construction of the Project. B. The City and Developers shall pay the total cost of construction of the total Project with the City's portion of such costs being in the amount of approximately three million dollars ($3,000,000.00). C. The City shall remit to the TCEDC verification of construction costs and reports on the progress of the Project as construction and development occur. D. Subject to the availability of funds, the TCEDC agrees to pay to the City an amount not to exceed one million six hundred seventy thousand dollars ($1,670,000.00), subject to the recapture provisions of Section 3, upon written notice from the City of deposit in escrow by the Developer of its cash contribution of Project Funds, as defined by Section 4.2 of the Development Agreement between the City of The Colony and the Billingsley Corporation, dated November 5,2007. 2.3 Maintenance. The City shall upon substantial completion accept and maintain the Project including appurtenances thereto. Fundinq Aqreement - Paqe 2 TM 25821.76.000 ARTICLE III Termination and Recapture 3.1 following: Termination Events. This Agreement shall terminate upon anyone of the (a) by written agreement of the parties; (b) by either party in the event the other party breaches any of the terms or conditions of this Agreement and such breach is not cured within thirty (30) days after written notice thereof; (c) by City, if any subsequent Federal or State legislation or any decision of a court of competent jurisdiction declares or renders this Agreement invalid, illegal or unenforceable; (d) by TCEDC, if the City fails to commit to use all of the funds for the purposes recited as follows: (1) acceptance of the Project by the City; (2) the Developer fails or the City fails to construct the Project. ARTICLE IV Miscellaneous 4.1 The terms and conditions of this Agreement are binding upon the successors and assigns of all parties hereto. This Agreement may not be assigned without the express written consent of the parties hereto. 4.2 Notice. Any notice required or permitted to be delivered hereunder shall be deemed received when sent by United States mail, postage pre-paid, certified mail, return receipt requested, addressed to the party at the address set forth with the signature of the party. 4.3 Bindin2 A2reement. The terms and conditions of this Agreement are binding upon the successors and permitted assigns of the parties hereto. This Agreement may not be assigned without the express written consent of the City Manager. 4.4 Entire A2reement. This Agreement is the entire Agreement between the parties with respect to the subject matter covered in this Agreement. There is no other collateral oral or written Agreement between the parties that in any manner relates to the subject matter of this Agreement, except as provided in any Exhibits attached hereto. 4.5 Governin2 Law. The Agreement shall be governed by the laws of the State of Texas; and venue for any action concerning this Agreement shall be in the State District Court of Denton County, Texas. The parties agree to submit to the personal and subject matter jurisdiction of said court. Fundina Aareement - Paae 3 TM 25821.76.000 4.6 Amendment. This Agreement may only be amended by the mutual written agreement of the parties. 4.7 Le2al Construction. In the event anyone or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention of the parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision shall be added to this Agreement which is legal, valid and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. EXECUTED this &a,. day of /L......A. L ,2008. THE COLONY ECONOMIC DEVELOPMENT CORPORATION By: ~~~_/U~ I" . Robert E. Norris, PRESIDENT 6800 Main Street The Colony, Texas 75056 EXECUTED this ~1ay of ~ ,2008. CITY OF THE COLONY, TEXAS By: Q1e~ Dale Cheatham, City Manager 6800 Main Street The Colony, Texas 75056 ATTEST: By: Fundinq Aareement - Paae 4 TM 25821.76.000 CITY'S ACKNOWLEDGMENT STATE OF TEXAS ~ ~ COUNTY OF DENTON ~ This instrument was acknowledged before me on the ~ of ~ ' 2008, by Dale Cheatham, City Manager of the City of The Colony, Texas, a Texas unlclpahty, on behalf of said municipality. Q4~ vJ~ Notary Public, State of Texas My Commission Expires: H-- d 'd-- O~ . ,....~,....,.....".................,'...."'......................'''1 r >'!I""'"'' ".<~~~,,~~#~'''' CHR'STIE NEU WilSON I .. ::ic:,.:-,iS" 0<- Ie I I f~g .~. ~ Nilll'yPuhtlC Stateot las i \.. ~ ,,",~';~l My Comm I,Slon Expires 11-22.09 l ~,. rtOf'~ ~ ""HtI"'\\~ _,_,.....,"',....,'~ .........,......~..............."............... TCEDC'S ACKNOWLEDGMENT STATE OF TEXAS ~ ~ ~ COUNTY OF DENTON This instrument was acknowledged before me on the ~ day of f\ ~ f \ \ 2008, by Robert E. 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