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HomeMy WebLinkAboutResolution No. 07-091 RESOLUTION NO. 07- Cq/ ORIGINAL A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE COLONY, TEXAS, APPROVING THE TERMS AND CONDITIONS OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN BILLINGSLEY DEVELOPMENT CORPORATION AND THE CITY OF THE COLONY, WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT A; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENT; AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City of The Colony ("City") and the Billingsley Development Corporation ("Developer") previously entered into two (2) Development Agreements concerning the development of Austin Ranch located in the City; and WHEREAS, the Developer has developed and continues to develop Austin Ranch; and WHEREAS, the City and Developer desire to enter into an agreement relating to the design and construction of the wastewater system; and WHEREAS, the City Council has determined it is in the best interest of the City to enter into the development agreement, which is attached hereto and incorporated herein as Exhibit "A," with the Billingsley Development Corporation for the construction of wastewater lines located in Austin Ranch. 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 Development Agreement by and between the City of The Colony and the Billingsley Development Corporation, which is attached hereto and incorporated herein as Exhibit "A," for the construction of wastewater lines located in Austin Ranch 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. PASSED, APPROVED and EFFECTIVE this 22nd day of October, 2007. J n Dillard, Mayor ATTEST: s Angie Kel , Deputy City Set & ry des 41 APP E A TO FORM: Robert E. Hage , ity Attorney (REH/cdb) (10/19/2007) TM 21398.76.000 DEVELOPMENT AGREEMENT BY AND BETWEEN BILLINGSLEY DEVELOPMENT CORPORATION AND THE CITY OF THE COLONY, TEXAS JAr~ ~ This Development Agreement ("Agreement") is made to be effective as of the tay of J , , by and between the CITY OF THE COLONY, TEXAS (the "City"), and BILLINGSLEY DEVELOPMENT CORPORATION (the "Developer"), acting by and through their duly authorized representatives. RECITALS: WHEREAS, the City and Developer have previously entered into two Development Agreements (hereinafter defined as the 1998 Development Agreement and the 2004 Development Agreement) concerning the development of the master-planned multiuse project known as "Austin Ranch" located in the City; and WHEREAS, the Developer has and continues to develop Austin Ranch; and WHEREAS, in order to serve existing residents of Austin Ranch, City has previously considered installation of a wastewater collection system, including wastewater collection lines, a lift station, and associated facilities; and WHEREAS, City and Developer anticipate future development in Austin Ranch and the vicinity, and City intends to plan for such anticipated future development by construction of additional public water and wastewater infrastructure as provided herein and, in addition, by amendment of the City's wastewater master plan and impact fee ordinance to include collection lines and one additional lift station of adequate capacity to serve development in the area generally described as the portion of the City limits north of McKamy Trail and south of Highway 121; and WHEREAS, the wastewater system planned for Austin Ranch (the "Project System") will serve existing and future development of a portion of Austin Ranch and the Tsai Tract after oversizing the initial conceptual design in accordance with City's requirements to a collection capacity of 2.66 MGD; and WHEREAS, subject to the fulfillment of certain conditions for a confirmation of uninterrupted service from North Texas Municipal Water District through the wastewater transmission and treatment system currently serving Austin Ranch, Developer has agreed to design and construct the Project System, and City and Developer have agreed to participate in the cost of the Project System, in all respects on the terms of this Agreement; and WHEREAS, upon completion of the Project System, Developer will dedicate the Project System to the City, subject to the Capacity Reservation, and the City will assume maintenance thereof and be responsible for operating and maintaining said facilities; and DEVELOPMENT AGREEMENT PAGE 1 VV ID 4C WHEREAS, in order to facilitate improvements to the City's water transmission system and thereby provide for future growth of the City, Developer or Developer's Affiliates to grant to the City the option to purchase easements for the installation of water and/or wastewater utility lines if the City decides that the need exists to improve its water and/or wastewater utility facilities; 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 System described herein and to otherwise amend previous development agreements concerning Austin Ranch to the extent expressly set forth in this Agreement, and to ratify and confirm such prior agreements as amended hereby. NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein and other valuable consideration the receipt and sufficiency of which are hereby acknowledged, the City and Developer agree as follows: ARTICLE I. TERM; PRIOR DEVELOPMENT AGREEMENTS 1.1 Term. The term of this Agreement shall commence on the last date of execution of this Agreement (the "Effective Date") and shall be coterminous with the 1998 and 2004 Development Agreements, unless sooner completed or terminated as provided herein. 1.2 1998 Development Agreement. A. Section 4.1 of the Development Agreement dated January 20, 1998 (the "1998 Development Agreement") between Developer and City (as such provisions have been subsequently amended) is amended by the provisions of Section 6.2 of this Agreement. B. Section 5.2.A.2., and A.3., 5.2.B.2., and 5.2.C of the 1998 Development Agreement is hereby deleted in its entirety. C. Section 5.2.D. of the 1998 Development Agreement is amended by the provisions of Article III of this Agreement, relating to City's option for and cost in acquiring certain Waterline Easements from the Developer and/or Developer's Affiliates, in order to provide for the dedication of certain easements without consideration, and the conveyance of additional easements for agreed consideration, as provided in this Agreement; except nothing contained herein shall relieve the Developer or Developer Affiliates, or its successors and assigns, to dedicate future rights-of-way or easements not expressly provided herein under the ordinances of the City. 1.3 Ratification and Confirmation of Remaining Provisions. City and Developer hereby ratify and confirm all provisions of the 1998 Development Agreement and 2004 Development Agreement which are not expressly amended or deleted pursuant to this Agreement. Without limiting the generality of the foregoing, those provisions in the 1998 Development Agreement which relate to reimbursement of the Developer's and City's respective infrastructure expenditures out of future impact fees collected in accordance with State law in Austin Ranch are hereby acknowledged, ratified, and confirmed in all respects, except as DEVELOPMENT AGREEMENT PAGE 2 p~~( TM 21467.76.000 tie I~Q C provided in Section 1.2. In no event shall Developer receive or be reimbursed impact fees attributable to development of the Tsai Tract (unless such impact fees are in fact paid by Developer), which tract is hereby excluded from Section 5.3 of the 1998 Development Agreement. 1.4 Condition Precedent. The obligations of both City and Developer under this Agreement are expressly conditioned on North Texas Municipal Water District's (hereinafter "NTMWD") extension (the date such extension is granted is referred to herein as the "Service Extension Date") of the pending deadline of May 17, 2008, for termination of service to Austin Ranch residents for a minimum period of twenty-four (24) months from its current expiration, providing for continuing support of City's wastewater treatment services for Austin Ranch residents in accordance with the status quo, and such additional projects as the City may permit during the extension period, during the design and construction of the Project System. City and Developer shall cooperate in good faith in seeking such extension within sixty (60) days after the Effective Date, provided neither party is required to incur any material expense in seeking or securing such extension. If the required extension is not granted within such period, this Agreement shall automatically terminate, unless the parties mutually agree to extend its effectiveness. If the extension is granted, and transition of the units now served through NTMWD to the Project System is completed prior to the extended deadline, earlier termination of NTMWD's service shall occur if acceptable to City and NTMWD. ARTICLE II. DEFINITIONS 2.1 "Affiliate" shall mean with respect to a specified person or entity, any person or entity that directly or indirectly controls, is controlled by, or is under common control with, the specified person or entity; any person or entity that directly or indirectly owns an ownership interest in the entity; and any entity in which such person or entity owns an interest; and any person or entity managed by, managing, or under common management with , such specified person or entity. As used in this definition, the term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise. 2.2 "Applicable Laws" shall mean the federal and laws of the State of Texas, codes, ordinances, and regulations administered by the City applicable by.their terms to a construction or development project described in this Agreement. 2.3 "Austin Ranch Property" or "Austin Ranch" shall mean the real property located solely in the City of The Colony, Denton County, Texas, known generally as the Austin Ranch development, owned, managed, or developed by Developer or a Developer Affiliate, as depicted on ExhibitA to this Agreement, excluding the Tsai Tract. 2.4 "Capacity Reservation" shall mean a permanent reservation of wastewater collection capacity as set forth in Section 4.8 of this Agreement. 2.5 "City" shall mean the city of The Colony, Texas. 2.6 "Developer" shall mean Billingsley Development Corporation. DEVELOPMENT AGREEMENT PAGE 3 TM 21467.76.000 C. 2.7 "Developer Affiliate" shall mean a person, real or corporate, partnership, limited liability company, corporation, trust, or other legal entity which is an Affiliate, as defined herein, of the Developer. 2.8 "Effective Date" shall mean the last date of execution of this Agreement. 2.9 "Force Majeure" shall have the meaning set forth in Section 9.7. 2.10 "Project Funds" shall have the meaning set forth in Section 4.2.B. 2.11 "Project Specifications" shall mean specifications meeting or exceeding the preliminary specifications for the Project System attached as Exhibit B to this Agreement, modified as contemplated in the Recitals for City oversizing, and located as shown in conceptual form on Exhibit C to this Agreement. 2.12 "Project System" shall mean the wastewater collection system located in Austin Ranch and the Tsai Tract (or alternate force main routing) which is comprised of certain lift station with a flow meter, wastewater collection lines, and facilities as identified on Exhibit B and Exhibit C. 2.13 "Shared Segments" in reference to the Project System shall mean (a) the lift station planned to be installed west of Plano Parkway, and (b) the force mains to be installed west of Plano Parkway. The Shared Segments exclude the gravity main segment and northern planned lift station, to be installed east of Plano Parkway. 2.14 "Tsai Tract" shall mean the real property containing 73 acres, more or less, more particularly described on Exhibit D to this Agreement. The Tsai Tract is located within the boundaries of Austin Ranch, but is not owned by Developer or Developer's Affiliates. ARTICLE III. WATER LINE AND WASTEWATER LINE EASEMENTS 3.1 Option for Waterline Easements. City plans to establish water transmission facilities [specific location south of Austin Ranch] for potable water supply to portions of the City in addition to Austin Ranch. In order to construct a water transmission system, City may require an easement over property of Developer and Developer's Affiliates, as identified on Schedule 1. The Developer and Developer's Affiliates ("Grantors") hereby grant to City an option (the "Option") to purchase the easements over the property described in Schedules 3A, 313, 3C, 3D, 3E, 3F, and 3G, which are attached hereto and incorporated herein, subject to the following terms and conditions: A. The purchase price for the Waterline Easement shall be Four and No/100 Dollars ($4.00) per square foot as indicated in Schedule 3, with price escalation to accrue at the rate of eight percent (8%) per annum simple interest from the date sixty (60) days after the Effective Date through the date of the City's acquisition. If the City is ready, willing and able to close within sixty (60) days after the Effective Date, there shall be no price escalation. The Developer will dedicate the twenty foot (20') wide easement in Schedule 3A as part of the Project System, and the City will pay the Developer for the excess easement area within such DEVELOPMENT AGREEMENT PAGE 4 ILA TM 21467.76.000 ~ ~ C dedicated easement area over 10,000 square feet; the 10,000 square feet shall be dedicated without compensation. B. That the easements in Schedules 3A through 3F shall be executed by the Developer or Developer's Affiliates within thirty (30) days of the Effective Date and deposited in the escrow with the Escrow Agent, with instructions to deliver such instruments upon disbursement of payment in full to the appropriate Developer's Affiliates. The City is obligated to escrow payment for such easements within sixty (60) days of the Effective Date. The Escrow Agent shall be authorized to deliver the easements for recording and disburse the compensation upon receipt of both. C. The easement reflected in Schedule 3G is an alternate to a proposed parallel easement within a pre-existing 75-foot wide easement granted to Texas Utilities Electric Company (TXU) or its successors (hereinafter collectively, "TXU"). The easement within the TXU easement is subject to TXU's prior approval. City agrees to have an easement within the TXU easement prepared at its expense and to pursue such approval, in good faith and with reasonable diligence, with Developer's cooperation. If such approval is not obtained within 180 days of the Effective Date, the City will purchase the easement in Schedule 3G, subject to Developer's right of relocation in the future in the event that TXU's approval is granted subsequent to such 180 day period and City has not improved such easement at the time Developer notifies City in writing of the receipt of such approval and of Developer's intention to relocate the City's prior-granted easement, and provided that surveying and documentation of such relocation shall be at Developer's sole expense. That the easement shall be executed by the Developer or Developer's Affiliates within two-hundred ten (210) days of the Effective Date and deposited in the escrow with the Escrow Agent, with instructions to deliver such instruments upon disbursement of payment in full to the appropriate Developer's Affiliate. The City is obligated to escrow payment for such easement within two-hundred forty (240) days of the Effective Date. The Escrow Agent shall be authorized to deliver the easement for recording and disburse the compensation upon receipt of both. D. Developer, Developer's successors and assigns shall have the right to continue to enjoy the use of the Easements for any and all purposes, including, without limitation, use of the surface for or permitting the use of the surface for parking, driving or landscaping, which do not unreasonably interfere with or prevent the exercise of the rights granted to the City hereunder. Without limiting the generality of the foregoing, there is hereby reserved to Developer, Developer's successors and assigns the exclusive rights to install paving, curbing, landscaping, and lighting on the Easements in accordance with the development regulations of the municipality where the property is located. Construction in and operation and maintenance of the City's facilities within the Easement shall be at the sole expense of the City. The easement rights and privileges herein granted shall be used only for the purpose of constructing, grading, operating, repairing, maintaining, re-building, replacing, relocating and removing utility lines and all appurtenances thereto. The Easements shall be maintained in a neat and clean condition. Notwithstanding any term or provision hereof to the contrary, improvements installed pursuant to this Agreement which protrude above the surface of the property are expressly prohibited except for lines and appurtenances which are necessary for the operation and maintenance of the facilities which DEVELOPMENT AGREEMENT PAGE 5 .t~ TM 21467.76.000 p S)C shall be located and screened in a manner as to not unreasonably interfere with Developer's use of the surface. City will at all times after doing any work in connection with the construction, operation, or repair of facilities within the Easement, restore the surface of the property subject to the Easement as close to the condition in which it was found before such work was undertaken as is reasonably practicable. 3.2 Utility and Gravity Flow Wastewater Line Easement(s). In order to prepare for anticipated development, City has expressed an interest in acquiring easements for the future utility services of the Tsai Tract and Austin Ranch through the Project System, for the purpose of connecting the Tsai Tract with the planned lift station west of Plano Parkway, and for other municipal utility purposes (the "Utility Easement"). The City's acquisition shall be subject to the following terms: A. Developer's Affiliates identified on Schedule 2 (collectively, the "Grantors") hereby agree to convey the Utility Easement in accordance with the terms of this Section 3.2. All improvements to the Utility Easement shall be subsurface, exclusive of appropriate service entry points and routine maintenance and operational appurtenances. B. The purchase price for the Utility Easements shall be Four and No/100 Dollars ($4.00) per square foot, with price escalation to accrue at the rate of eight percent (8%) from the date sixty (60) days after the date of Developer's delivery of the force main alignment description pursuant to Section 3.2.C, through the date of the City's acquisition. If the City is ready, willing and able to close within sixty (60) days after such delivery date, there shall be no price escalation. C. The Utility Easement shall be located within the following described Easement segments: A ten foot (10') wide Utility Easement, which will be parallel and contiguous to the east side of the force main easement provided under Section 4.7 of this Agreement, within the utility segment of the Utility Easement between the southern boundary of the Tsai Tract and the planned lift station site west of Plano Parkway, along the alignment shown on Exhibit E as the "gravity line corridor." Square footage of easements shall be determined by survey of the easement area by a licensed professional surveyor engaged by City, at City's sole cost and expense, after Developer's delivery to City of a boundary description of such force main easement area, pursuant to Section 4.3 of this Agreement. D. The closing of the City's purchase of the Utility Easement will occur on or before the first anniversary date of the date of Developer's delivery of the force main alignment description pursuant to Section 3.2.C. The City shall pay for the Utility Easement all in cash or other good funds. Grantor will deliver to the City for recording an easement deed with special warranty of title, conveying the Utility Easement subject to existing easements, restrictions, and encumbrances of record (except for deeds of trust or other liens created by or through Grantor, which Grantor shall cause to be released). DEVELOPMENT AGREEMENT PAGE 6 TM 21467.76.000 9ctc E. Developer, Developer's successors and assigns shall have the right to continue to enjoy the use of the Easements for any and all purposes, including, without limitation, use of the surface for or permitting the use of the surface for parking, driving or landscaping, which do not unreasonably interfere with or prevent the exercise of the rights granted to the City hereunder. Without limiting the generality of the foregoing, there is hereby reserved to Developer, Developer's successors and assigns the exclusive rights to install paving, curbing, landscaping, and lighting on the Easements hereto in any fashion determined by the fee owner of such property, in such owner's sole and absolute discretion. Construction in and operation and maintenance of the City's facilities within the Easement shall be at the sole expense of the City. The easement rights and privileges herein granted shall be used only for the purpose of constructing, grading, operating, repairing, maintaining, re-building, replacing, relocating and removing utility lines and all appurtenances thereto. The Easements shall be maintained in a neat and clean condition. Notwithstanding any term or provision hereof to the contrary, improvements installed pursuant to this Agreement which protrude above the surface of the property are expressly prohibited except for lines and appurtenances which are necessary for the operation and maintenance of the facilities which shall be located and screened in a manner as to not unreasonably interfere with Developer's use of the surface. City will at all times after doing any work in connection with the construction, operation, or repair of facilities within the Easement, restore the surface of the property subject to the Easement as close to the condition in which it was found before such work was undertaken as is reasonably practicable. 3.3 Tsai Tract Easement. The Project System has been designed to incorporate an easement of a minimum twenty (20') feet in width located over the Tsai Tract for routing of a force main. City hereby agrees to use its best efforts to acquire such pipeline easement, on terms satisfactory to City, permitting Developer's contractors customary temporary construction easements for the purpose of constructing the portion of the Project System located thereon. At such time as an easement over the Tsai Tract may be conveyed to the City, the City shall notify Developer and cooperate in good faith with grants, licenses, and temporary construction easements reasonably required by Developer's contractors for work on the Project System within such easement area, on the same terms as public works carried out by other developers within City rights-of-way. If despite the City's good faith efforts to acquire such easement (without, however, a requirement that the City proceed to condemnation), the City is unable to do so within four (4) weeks after the Effective Date, Developer will cause its Affiliates to agree to sell and City will commit to purchase an easement of twenty (20') feet in width circumventing the third party landowners' properties at a price of $4.00 per square foot, within areas owned by Developer's Affiliates, along the "Alternate Force Main Route" identified on Exhibit C as such. The closing of the transfer of the easement for such Alternate Force Main Route shall occur coincident with the dedication of easements under Section 4.7 of this Agreement. 3.4 Nothing contained in this Agreement shall act as a waiver of the Developer or Developer's Affiliates obligations to dedicate right-of-way or easements by a process in conformity with the City Code of Ordinances and the development regulations. DEVELOPMENT AGREEMENT PAGE 7 LM TM 21467.76.000 1 j ARTICLE IV. WASTEWATER PROJECT SYSTEM 4.1 Project System. In order to provide for future service to later-constructed improvements in Austin Ranch through installation of oversized sanitary sewer facilities, Developer has proposed to the City that if the City would contribute the amount of $970,000, plus nineteen percent (19%) of the Shared Segments cost (determined without reference to voluntary additions to or improvements of the Project System undertaken by Developer to increase collection capacity over 2.66 MGD)(which 19% portion is currently estimated to be $352,831.58) and provide treatment capacity through its Stewart Creek plant, Developer would assume responsibility for funding the balance of costs necessary to design and install the Project System and any additions to or improvements of such system to increase collection capacity. In no event shall any voluntary additions to or improvements of the Project System undertaken by Developer to increase transmission capacity over 2.66 MGD result in an increase of City's nineteen percent (19%) share, which shall be applied to the bid costs of the Project System without such additions or improvements in order to determine City's contribution. The Project Specifications describe a gravity main, lift station, and force main. Such facilities will be sized at a minimum to convey the flows as specified with the line segments in Exhibit G as follows: Existing System to Point B 2.88 million gallons per day (mgd) Points B to C 3.23 mgd Points C to C 1 3.43 mgd Points Cl to D 3.88 mgd Points D to DA 4.26 mgd Points DA to D1 4.35 mgd Lift Station & Force Main 2.66 mgd City and Developer agree that Developer will construct the Project System, and City and Developer will contribute toward the cost of the Project System, on the terms set forth in this Agreement. Developer understands that development of Austin Ranch that causes the flows to increase above these design flows will require expansion at the Developer's sole cost. 4.2 Contribution of Project Funds. City's and Developer's financial participation in the cost of the Project System shall be funded in the amounts and according to the terms of this Section 4.2. A. Within thirty (30) days after the award of the bid for the construction of the Project System, the City will escrow the cash sum equal to $970,000.00 plus its nineteen percent (19%) share of the Shared Segment costs (determined without reference to voluntary additions to or improvements of the Project System undertaken by Developer to increase collection capacity over 2.66 MGD)(currently estimated to be $352,831.58). Within the same time period, Developer will escrow the cash sum equal to balance of Project System costs. The DEVELOPMENT AGREEMENT PAGE8 (S2 TM 21467.76.000 l~J escrow shall be placed with Republic Title Company, 2626 Howell Street, 10th floor, Dallas, TX 75204. Such escrow of funds shall be subject to the terms of an escrow agreement by and among City, Developer, and Republic Title Company ("Escrow Agent"), to be executed contemporaneously with the City's and Developer's escrow of funds. The escrow agreement shall incorporate a stipulation that Escrow Agent's disbursements shall be made to engineers and contractors (the "Approved Payees") listed by Developer's general contractor(s) in the general contract(s) for the Project System installation let by Developer, or to City or Developer if either party shall provide paid invoices and corresponding lien releases and apply for reimbursement rather than direct payment of contractor(s). The escrow agreement shall authorize the Escrow Agent to disburse Escrow Funds to Approved Payees (and to no other parties) based on the Project System's engineer's certification submitted on standard AIA Form G702, submitted to the escrow agent by Developer with copy to City, unless and until the Escrow Agent receives notice from the City that Developer is in default under this Agreement. No other disbursements shall be permitted without the mutual approval of City and Developer during the pendency of a default by Developer hereunder, or after the occurrence of any act or event which would constitute an event of default under this Agreement (collectively, "Review Events"), or for a draw which is not accompanied by the Project System engineer's certification as required herein. In the event an agreement cannot be consummated with Lonzar Development, Inc., or its successors in interest regarding the Tsai Tract, then the City would not be required to deposit the Shared Segment amount as required herein, or purchase the Utility Easement as provided in Section 3.2.C, unless it elects to proceed with oversizing of the Shared Segments. B. The escrowed funds (herein referred to as the "Project Funds") are currently estimated to be $2,919,307.14 in the aggregate, subject to adjustment as provided in Subsection 4.2.C and to increase, if Developer elects to expand the Project System scope and increase the estimated cost thereof (which increase, if any, Developer shall fund, without impact to the City's share of Shared Segment costs based on the Project System described in Exhibits B and Q. The Project Funds will be available for funding of periodic payments to Approved Payees (or to Developer in reimbursement of such payments by Developer) as hereafter provided. C. Developer shall deliver to City a true, correct, and complete copy of each invoice or application for payment from an engineer or contractor identified as an Approved Payee in connection with the Project System. The Escrow Agent shall not process for payment such invoice or application unless the Developer and the City have authorized payment. The City shall have five (5) business days to review and authorize a payment. Submissions shall be no more frequent than biweekly. If, after the occurrence of a Review Event, City has not approved the invoice or application, it shall notify Developer within five (5) business days of receipt (the "Review Period"); otherwise, the invoice or application shall be deemed to be approved by City. In the event that the City objects to payment without good cause, the City shall be liable to the Developer for interest on the invoice amount accruing at ten percent (10%) simple interest from the date of City's objection to the date such objection is resolved in Developer's favor. Good cause as used in this subsection shall mean not built in accordance with the approved plans or other default of this Agreement. Developer may make direct payment to Approved Payees and apply for reimbursement of such payments from Project Funds, so long as DEVELOPMENT AGREEMENT PAGE 9 1 TM 21467.76.000 Lxt C evidence of Developer's payments in the form of cancelled checks, receipts, and mechanics lien releases are delivered to Escrow Agent with the application for payment. Within fifteen (15) days after receipt of an invoice or application for payment conforming with the terms of the escrow agreement, Escrow Agent shall pay the invoices or applications to Approved Payees or to Developer in the event of Developer's verified prepayment. Items to which the City objects after the occurrence of a Review Event shall be reserved from disbursement and the balance of invoices and applications for payment shall be paid from the Project Funds. All costs of the Project System in excess of the Project Funds shall be paid by Developer. All objections to payment, or other disputes concerning the Project Funds or payment to the Project System contractors, shall be resolved first through mediation convened within thirty (30) as provided in Article VII. 4.3 Design of Project System. The pipeline routing for the Project System shall be as set forth on Exhibit C, provided that City and Developer acknowledge that two alternate force main routes are planned, pending City's identification of the route it elects pursuant to Section 3.2 of this Agreement over or around the Tsai Tract. Developer, at its sole cost, will cause design of the Project System to begin on the schedule set forth in Section 4.5, and based on completed plans, will cause the preparation and submission to the City of the necessary permit application and construction drawings for the Project System, based on the Project Specifications determined in the course of the design process. The City staff will process such application and construction drawings in accordance with applicable provisions of City Code and any other Applicable Laws. City processing of the permit application would be completed on the schedule set forth in Section 4.5, excluding any processing delay pending City's receipt of information requested from Developer pertaining to the permit application. 4.4 Project System Modifications. A. By City. No modification of the plans, drawings, and specifications for the Project System for oversizing will be required to be made, in light of City's election to oversize the initially planned Project System to accommodate wastewater flows of 500,000 gallons per day, provided that Developer shall cooperate in good faith in modifying such plans, drawings, and specifications to the extent that City's subsequent request for additional oversizing does not prejudice Developer or materially increase the Project System design costs or otherwise delay or impair the design or construction of the Project System. B. Future Additional Capacity. The proposed 2.66 mgd lift station and force main of the Project System includes capacity for the Tsai Tract (0.5 mgd), existing development east of the railroad in Austin Ranch (0.6 mgd), and some additional development in Austin Ranch both east and west of the railroad (1.56 mgd). The 1.56 mgd capacity for additional development in Austin Ranch will be for the sole wastewater collection service of Austin Ranch as defined in Section 2.3 and depicted in Exhibit A to this Agreement. With each new development in Austin Ranch, the Developer's engineer will provide a Wastewater System collection map with total projected wastewater flows including inflow and infiltration for City approval. Developer understands that the proposed project system only provides wastewater collection service for a portion of Austin Ranch and that for development of Austin Ranch exceeding the capacity of the Project System, expansion of the system will be necessary. During or after completion of construction of the Project System, both the Developer and the City have DEVELOPMENT AGREEMENT PAGE 10 r TM 21467.76.000 l the right to expand the system beyond the proposed capacities, subject to the terms of this Agreement. C. Capacity Determinations. All capacities for the Project System and future additions to the Project System will be determined for design, permit, and all other purposes based on accepted engineering practices consistent with the City of The Colony, Texas' Wastewater Master Plan, as amended, using metered wastewater flows. Neither City nor Developer intends to require or develop infrastructure in excess of what is absolutely necessary based on sound engineering judgment using actual metered flows and meeting applicable TCEQ requirements. 4.5 Construction of Project System. A. Developer will bid the general contract for the installation of the Project System in accordance with TEXAS LOCAL GOVERNMENT CODE, Section 212.071 et seq., and cause the contractor(s) to complete installation of the Project System, all in accordance with the Project Specifications (with change orders effected by Developer) as provided in Section 5.6 of this Agreement. The schedule for the completion of the Project System anticipated by Developer is as follows: Completion Date (expressed as days subsequent to Service Task Extension Date as defined in Section 1.4) Executed contract for engineering services + 30 days Complete contract for lift station, force main and gravity line design, bid phase and construction phase services Engineering plans submitted to City + 180 days 100% complete engineering design plans and legal descriptions for easements for lift station, force main and gravity line submitted to City Engineering Design Plans Approved by City + 210 days Bid Project + 240 days Receive bids from contractors for construction of lift station, force main and gravity line based on City approved plans DEVELOPMENT AGREEMENT PAGE 1 1 k TM 21467.76.000 { S)rj C Begin Construction + 270 days Execute contract with contractor that is lowest responsible bidder, hold preconstruction meeting, pay inspection fees and begin work at site for construction of lift station, force main, and gravity line Construction Substantially Complete + 635 days Construction substantially complete for lift station, force main and gravity line Any default by Developer in constructing the Project System, after applicable notice and opportunity to cure, will entitle the City to assume control and complete construction of the Project System to the extent of available Project Funds (as provided in Article VIII). Project Funds shall not be applied by either Developer or the City to any infrastructure improvements or for any other purpose, other than the Project System. B. Developer anticipates that the schedule for design and construction of the Project System will substantially conform with the foregoing project schedule. Commencement of on-site development activity would occur no later than sixty (60) days after City approval of the construction plans for the Project System. Developer shall be deemed to be in default under this Agreement if on-site development activity in connection with the Project System has not occurred on or before sixty (60) days after City approval of the Project System construction plans, or if after commencement construction activity ceases for more than sixty (60) consecutive days, for reasons other than force majeure delay. 4.6 Final Com letion. In the event that the Project Funds exceed the disbursed costs of the Project System, any excess funds shall be refunded to Developer within seven (7) days after the City's acceptance of dedication of the Project System, in accordance with Section 4.7, below. If the disbursed costs of the Project System exceed the Project Funds, Developer shall be solely responsible for payment of such excess costs, and after the City's escrow of funds in the amount contemplated in subsection 4.2.A, above, Developer will indemnify, defend, and hold the City harmless from all claims for additional Project System costs by Project System engineers and contractors. The City's participation in the Project System shall be limited to the contribution amount set forth in subsection 4.2.A., above. It is the parties' mutual intention that the Developer shall bear all costs of the Project System over and above such contribution amount. 4.7 Dedication. Within thirty (30) days after the award of the bid for the construction of the Project System, Developer will deliver to the Escrow Agent executed easements necessary to construct and operate the Project System, to be held by the Escrow Agent and delivered at the time of dedication of the Project System. The escrow agreement shall describe the parties' respective rights and obligations concerning such escrowed instruments. DEVELOPMENT AGREEMENT PAGE 12 TM 21467.76.000 ct C 4.8 Capacity Reservation. The Capacity Reservation, for the benefit of the parties provided hereafter, assures that the tracts of property which currently comprise Austin Ranch shall have a minimum of 2.16 mgd wastewater collection capacity upon substantial completion of the Project System for so long as the Project System may be in operation. A. Developer's Capacity Reservation shall benefit all properties within Austin Ranch currently owned by Developer or Developer Affiliates. City covenants and agrees that in no event shall any of the collection capacity subject to the Capacity Reservation be permitted to be utilized by any applicant whose property is located outside the boundaries of Austin Ranch as defined in Sect. 2.3 of this agreement. B. City is proceeding with an amendment to its Wastewater Master Plan and Impact Fee Ordinance (the "Master Plan Amendment") which would have the effect of adding an additional lift station to the City's master plan for the area south of Highway 121 to be of adequate capacity to serve development in the area north of McKamy Trail and east and west of the BNSF rail line (which area is referred to herein as the "McKamy Trail Basin"). The Master Plan Amendment, if adopted, would support Developer's Capacity Reservation in the Project System by providing for the construction of a supplemental wastewater collection system in the Upper Indian Creek Watershed (north of Austin Ranch) to serve other developments in such watershed, consistent with Developer's Capacity Reservation. However, City has not at this time approved the Master Plan Amendment. In order to assure that Developer achieves the benefit of its bargain under this Agreement with respect to the Capacity Reservation, in the event that at any time during the term of the Capacity Reservation, City authorizes the connection to the Project System (collectively, the "Unauthorized Taps"') of any development project not within Austin Ranch as defined Sect. 2.3 of this agreement, such action shall immediately obligate the City, at no expense to Developer, Developer's Affiliates, or any owner of Austin Ranch properties, to construct additions to the Shared Segments offsetting the reduction in capacity of the Shared Segments attributable to the Unauthorized Taps on a gallon-for-gallon basis, maintaining the identical unused collection capacity in the Shared Segments for the benefit of properties within Austin Ranch. Such Shared Segment additions are required to be commenced on the ground within ninety (90) days after the date of authorization of the Unauthorized Tap, pursued with reasonable commercial diligence to conclusion, and completed in any event on or before the eighteenth (18th) month after the date of City's authorization of the Unauthorized Tap. C. If City shall have elected to oversize the Shared Segments for the benefit of the Tsai Tract, in the event that at any time during the term of the Capacity Reservation, development projects within Austin Ranch when determined using the parameters in this Agreement to require more than 2.16 MGD collection capacity in the Shared Segments, such action shall immediately obligate Developer, at no expense to City, to construct additions to the Shared Segments offsetting the reduction in capacity of the Shared Segments allocated to the Tsai Tract on a gallon-for-gallon basis, maintaining .5 MGD collection capacity in the Shared Segments for the benefit of the Tsai Tract. Such Shared Segment additions are required to be commenced on the ground within ninety (90) days after the date the determination of ' Unauthorized Taps does not include the Tsai Tract as defined since its capacity has been assigned and is not computed into the capacity reserve by the Developer. DEVELOPMENT AGREEMENT PAGE 13 i11f TM 21467.76.000 1~ encroachment on the Tsai Tract allocated capacity, pursued with reasonable commercial diligence to conclusion, and completed in any event on or before the eighteenth (18th) month after the date of such determination. New projects in Austin Ranch will not be permitted for construction by the City if such projects exceed the 2.16 MGD collection capacity in the Shared Segments. D. It is the parties' expectation that Unauthorized Taps will not occur in the future, in light of the probability that the Master Plan Amendment will be approved and development in the Austin Ranch watershed will be carried out in accordance therewith. However, because Developer would not enter into this Agreement without the absolute assurance of the Capacity Reservation, and City cannot assure Developer that Unauthorized Taps will not occur in the future (due to failure of the City Council to adopt the Master Plan Amendment, revocation or modification of the Master Plan Amendment once adopted, or other unforeseeable circumstances), City hereby assumes the absolute and unconditional obligation to provide substitute collection capacity in the Shared Segments if Unauthorized Taps shall unexpectedly occur, all at no expense (however assessed, directly or indirectly) to properties within Austin Ranch as defined in Sect. 2.3 of this agreement. ARTICLE V. GENERAL TERMS OF THE CONSTRUCTION 5.1 Compliance with Applicable Law. The projects provided herein shall be designed in compliance with Applicable Laws in effect at the time of design, construction and acceptance. 5.2 Construction Within Cif Rights-of-Way. All construction within rights-of-way and easements shall be subject to inspection and approval of the City to the same extent as a permitted construction project in accordance with Applicable Laws. The City shall be named as a third party beneficiary or party to any construction and engineering contracts to construct the Project System, provided that all rights of the City in such capacity will apply only after default by Developer under this Agreement and City's exercise of the right to assume construction of the Project System under Section 8.4. The City must be given forty- eight (48) hours notice by the contractor before commencing any such work, including construction, excavation, maintenance, or other work, under this Agreement within City rights- of-way and easements. Any work conducted without coordination of City inspection is subject to being removed, reduced, or reconstructed at the cost of the Developer. Nothing contained herein shall act as an estoppel from enforcement of any applicable ordinances. 5.3 INDEMNITY. THE DEVELOPER WILL HOLD THE CITY HARMLESS AND INDEMNIFY THE CITY FOR ANY CLAIMS, DEMANDS OR DAMAGES TO THE ELECTRIC, GAS, WASTEWATER, WATER OR TELEPHONE UTILITIES IN EACH LOCATION SUSTAINED IN THE PROCESS OF CONSTRUCTION AND SHALL FURTHER SAVE AND HOLD THE CITY HARMLESS AND INDEMNIFY THE CITY FOR ANY CLAIMS, DEMANDS OR DAMAGES TO ANY PERSON OR PROPERTY. IT SHALL NOT BE A DEFENSE TO THIS INDEMNITY AND HOLD HARMLESS AGREEMENT TO CONTEND THAT THE CITY OR ANY OF ITS AGENTS OR EMPLOYEES WAS THE CAUSE OF THE DAMAGES OR LIABILITY, WHICH MAY BE ASSERTED AS A RESULT OF THE DEVELOPER'S OR ASSOCIATION'S OPERATIONS. DEVELOPMENT AGREEMENT PAGE 14 \ n TM 21467.76.000 kTV 5.4 Insurance. Developer shall insure that the Contractor obtain and carry general liability insurance covering all of its operation hereunder in the amount of $1,000,000 a person, $2,000,000 per occurrence. That insurance shall name the City as an additional named insured and shall be of the occurrence type. Before commencing any activity on the Project System hereunder, the Developer shall supply the City a certificate of that insurance which clearly indicates the requirements herein and is by a company reasonably satisfactory to the City. 5.5 Notification of Utilities. Developer shall notify any and all utility companies required by Applicable Law prior to initiation of any work on the Project System. 5.6 Performance and Maintenance Bond. Developer shall secure such performance and maintenance bonds as are required for public works contracts performed on any public property, to the extent required by State law and ordinances of the City. ARTICLE VI. DEVELOPMENT TIMELINES 6.1 Austin Ranch Signage. Developer shall, upon execution of a License Agreement in substantial compliance to a form as provided in Exhibit F to this Agreement, be permitted to seek the appropriate approvals under the Code of Ordinances of the City to allow a permanent monument signage, including an amendment to the land use ordinances of the City, to be located in the median of Windhaven Parkway within Austin Ranch as depicted in the elevation exhibit attached hereto as Exhibit F-1. City staff intends to convey its recommendation to the City Council for the granting of such approvals, to the extent Council approval is required for modification of existing zoning. 6.2 Austin Ranch Public Safety Site. Section 4.1 of the 1998 Development Agreement establishes a deadline for City's construction of a fire station located in Austin Ranch within eighteen (18) months after Austin Ranch residential population reaches 7,500. Developer and City hereby agree to extend such construction deadline to eighteen (18) months after Austin Ranch residential population reaches 10,000 as determined by the City Planner. That the City and Developer agree and acknowledge that the proposed fire station have agreed to approve setbacks for the fire station to be constructed on said site (without effect on set back restrictions governing any other development which may occur on said site), relocating the set back lines from one hundred (100') feet to seventy (70') feet and seventy-five (75') feet to fifty (50') feet as set forth in an approval from the Developer dated February 28, 2006, reflected on Exhibit H to this Agreement. Section 4.1 of the 1998 Development Agreement is amended accordingly. 6.3 Boundary Adjustment. Developer has presented to City staff an application requesting the City's approval of an adjustment of the southern boundary of the City, within Austin Ranch to conform the respective City boundaries with good engineering practices with respect to subdivision planning in Austin Ranch. The adjustment is proposed to be effected by the City's execution of a boundary adjustment agreement with the City of Carrollton. The proposed boundary adjustment is reflected on Exhibit I to this Agreement. Such application is presently under engineering review by the staffs of both Carrollton and the City. City intends to process such application promptly and in good faith, and to cooperate in coordinating the necessary actions with Carrollton staff, and intends to approve the adjustment, based on the DEVELOPMENT AGREEMENT PAGE 15 TM 21467.76.000 ~J determination of the City staff that such adjustment is in the public interest. City staff intends to convey its recommendation to the City Council for the granting of such application, to the extent Council approval is required, and further agrees to take actions on such application diligently and without unreasonable delay. City acknowledges that practically speaking the Councils of the two municipalities cannot take simultaneous action, City agrees to proceed with Developer's application prior to future corresponding action by the Carrollton City Council (though the ultimate consummation of the boundary adjustment will be subject to approval by the Councils of both City and Carrollton and the City shall have no responsibility to incur any expense in order to induce Carrollton with respect to the boundary adjustment). ARTICLE VII. DISPUTE RESOLUTION Any controversy or claim arising out of or relating to this Agreement or a breach hereof (a "Dispute"), including any Dispute concerning any disbursement of the Project Funds, may be settled by mediation in accordance with mediation and dispute resolution under state law. ARTICLE VIII. DEFAULT AND REMEDIES 8.1 Notice of Default. If either party shall claim the other party to this Agreement is in default of any obligation hereunder, before pursuing any remedy for such default, such party shall notify the other party, specifying the alleged default, and allow such party fifteen (15) days (in the case of monetary default) and sixty (60) days (in the case of any other default) within which to cure such default. 8.2 Termination. 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 the applicable cure period. 8.3 Assumption of Project System. The following acts or omissions by Developer in constructing the Project System shall be considered to be a default under this Agreement, entitling City, after applicable notice and opportunity to cure, to assume exclusive control of the construction of the Project System as hereafter provided: A. Failure to comply with any of the design and construction deadlines specified in Section 4.5; B. Failure to commence construction and/or to substantially complete the Project System as provided in Section 4.5; or C. Failure to deposit and maintain escrow funds in accordance with this Agreement; or D. Failure to pay or otherwise be in default with general contractor for installation of the Project System. DEVELOPMENT AGREEMENT PAGE 16 TM 21467.76.000 8.4 Assumption of Project System Construction After Default. For the benefit of City, Developer shall not default under any contract for design or installation of any portion of the Project System (provided that Developer reserves the right to assert any bona fide contention, allegation, or defense in connection with a dispute with any contractor over the contractor's work. Developer shall not permit any Project System contract to terminate by reason of any failure of Developer to perform thereunder. In the event work shall have ceased on the Project System for a period in excess of the period allowed under this Agreement, in addition to any other rights or remedies available to City for such default, City shall have the right to access any remaining escrow funds, easements for the property and sufficient access for temporary construction on Developer's or Developer Affiliate's property and to assume Developer's construction of the Project System under this Agreement and apply the remaining balance of the Project Funds, easements and access to the construction thereof; and, effective as of the date of City's notice to the Escrow Agent that City has elected to do so on account of such default by Developer, a copy of such notice shall be delivered to Developer at the same time as the Escrow Agent, Developer's right to withdraw Project Funds shall cease until final and binding resolution of any dispute between City and Developer pursuant to Article VII or any other applicable legal process. Further, City shall have the right to obtain the easements set forth in Schedule 3A through 3G pursuant to applicable terms of the parties' escrow agreement with the Escrow Agent and cause the same to be recorded in the Deed Records of Denton County, Texas. Thereafter, if City's right to pursue construction of the Project System is enforced by a final judgment of a court of competent jurisdiction, Developer shall cooperate with City in facilitating City's construction of the Project System and causing Developer's Affiliates to permit entry onto the Project System areas to perform such construction. Notwithstanding any term or provision hereof to the contrary, neither Developer nor City shall at any time apply any portion of the Project Funds to any purpose other than the design and construction of the Project System. 8.5 Attorneys' Fees. In the event that any party hereto brings an action or proceeding for a declaration of the rights of the parties under this Agreement, for injunctive relief, for an alleged breach or default of, or any other action arising out of, this Agreement or the transactions contemplated hereby, the prevailing party shall be entitled to reasonable attorneys' fees in addition to any court costs incurred and in addition to any other damages or relief awarded. This provision will survive the termination of this Agreement. ARTICLE IX. MISCELLANEOUS 9.1 INDEMNIFICATION/HOLD HARMLESS. DEVELOPER DOES HEREBY RELEASE, INDEMNIFY AND HOLD HARMLESS THE CITY, ITS OFFICERS, AGENTS, EMPLOYEES, AND THIRD PARTY REPRESENTATIVES (COLLECTIVELY REFERRED TO IN THIS SECTION 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 DIRECTLY OR INDIRECTLY FROM THE DEVELOPER'S PERFORMANCE OF THIS AGREEMENT. THE FOREGOING RELEASE AND INDEMNITY SHALL SURVIVE TERMINATION OF THIS AGREEMENT. DEVELOPMENT AGREEMENT PAGE 17 tLA TM 21467.76.000 TXV °-C 9.2 Compliance with Laws. Developer shall fully comply with all local, state and federal laws, including all Applicable Laws, applying to the subject matter of this Agreement. 9.3 Successors and Assigns. All obligations and covenants of the Developer under this Agreement shall be binding on the Developer, and its successors and assigns. Developer may not assign this Agreement or its rights and interests therein prior to final completion and dedication of the Project System without the prior written consent of the City. Thereafter, after notice to City, assignment shall be permissible. If Developer or Developer's Affiliates shall assign any portion of the Property to a third party in connection with a sale of Austin Ranch real property, the assigning party shall notify City and City shall cooperate in executing and delivering an estoppel certificate for the benefit of Developer, Developer's Affiliate, the transferee, and the transferee's lender, reflecting the status of this Agreement and Developer's default-free standing hereunder (or specifying such default or act or omission which might constitute a default with the expiration of applicable cure periods, if City shall claim that a default exists), as well as the used and unused transmission capacity in the Project System per City records, using the perimeters in this Agreement. 9.4 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 enforces as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 9.5 Governing Law. The validity of this Agreement and any of its terms and provision, 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. 9.6 Entire Agreement. This Agreement embodies the complete agreement of the parties herein, 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. In the event there is a conflict in the interpretation of any written portion of this Agreement and any exhibit attached hereto, the provisions of the exhibit shall control. 9.7 Force Majeure Delays. If the performance of any obligation hereunder other than monetary obligations is delayed by reason of riots, material or labor restrictions, natural disasters, war, civil commotion, acts of God, inclement weather and resulting conditions preventing on-site activity, governmental restrictions, regulations, or interferences, unreasonable delays by City staff in issuing any permits or conducting any inspections, unforeseen subsurface or site issues, court injunction or other legal proceedings, the action or inaction of third parties, or other circumstances which are reasonably beyond the control of the party obligated or permitted under the terms of this Agreement to do or perform the same ("Force Majeure"), the party so obligated or permitted shall be excused from doing or performing the same during such period of delay, so that the time period applicable to such design or construction requirement shall be extended for a period of time equal to the period such party was delayed, provided that the party is diligently and continuously pursuing a resolution of such delay. DEVELOPMENT AGREEMENT PAGE 18 \ TM 21467.76.000 9.8 Notices. All notices, demands, requests, consents. approvals or other communications (the "Notices") required or permitted to be given by this Agreement shall be in writing and shall be either personally delivered, or sent via telecopy with receipt confirmation, or by Federal Express or other regularly scheduled overnight courier or sent by United States mail, registered or certified with return receipt requested, properly addressed and with full postage prepaid. Said Notices shall be deemed received and effective on the earlier of (i) the date actually received (which, in the case of telecopied notice, shall be the date such telecopy is transmitted with electronic confirmation of receipt) or (ii) three (3) business days after being placed in the United States Mail as aforesaid. Notices shall be sent to the parties hereto at the following addresses, unless otherwise notified in writing: To City: With a copy to: Dale Cheatham, City Manager Gordon Scruggs, City Engineer City of The Colony City of The Colony 6800 Main Street 6800 Main Street The Colony, Texas 75056 The Colony, Texas 75056 Facsimile: 972-624-2312 Facsimile: 972-624-2317 With another copy to: Robert E. Hager, City Attorney NICHOLS, JACKSON, DILLARD, HAGER & SMITH, L.L.P. 1800 Lincoln Plaza 500 North Akard Dallas, Texas 75201 Facsimile: .214-965-0010 To Developer: With a copy to: Billingsley Development Corporation Charles C. Jordan Att'n: Carrington, Coleman, Sloman & Blumenthal, 4100 International Parkway L.L.P. Suite 1100 901 Main Street, Suite 5500 Carrollton, TX 75007 Dallas, Texas 75202 Facsimile: Facsimile: (214) 758-3721 9.9 Incorporation of Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 9.10 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. DEVELOPMENT AGREEMENT PAGE 19 n TM 21467.76.000 ~j ee 9.11 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. 9.12 Authorization. Each party represents that it has full capacity and authority to grant all rights and assume all obligations that are granted and assumed under this Agreement. 9.13 Covenants and Representations. Developer represents, warrants and covenants that it has the authority to: (i) enter into this Agreement and to execute and deliver this Agreement and (ii) perform and comply with all of the terms, covenants and conditions to be performed and complied with by the Developer hereunder. The City represents warrants and covenants that it has the authority to; (i) enter into this Agreement and to execute and deliver this Agreement; and (ii) perform and comply with all of the terms, covenants and conditions to be performed and complied with by the City hereunder. All said covenants in this Agreement shall be hereby deemed to run with the land. EXECUTED in duplicate originals this the day of G v , 2007. CITY: CITY OF THE COLONY, TEXAS ' C'LL". By: PL Dale Cheatham, City Manager ATTEST: By: _ āœ“ 5Tie 63 tl , City Secretary t.: APPROVED FORM: r By: Aer - 6E2 , City Attorney DEVELOPMENT AGREEMENT PAGE 20 , r TM 21467.76.000 I- 2Z_Lms EXECUTED in duplicate originals this the Zday of V 2007. DEVELOPER: BILLINGSLEY DEVELOPMENT CORPORATION By: z3k&~A-,, Title: Pori- eāœ“ DEVELOPMENT AGREEMENT PAGE 21 'r A TM 21467.76.000 CITY'S ACKNOWLEDGEMENT STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on the I=f day of -rte 200-_, by -Dale Cheatham, City Manager of the City of The Colony, a Texas municipality, on behalf of said municipality. Notary Public, State of Texas ,,µ1~111111~ Sp~~~ S § aY Pu `41STIE NFU WILSON S =j~1*,,uu,,,B,: , Notary Public. State of Texas My Commission Expires 11-22-09 DEVELOPMENT AGREEMENT PAGE 22 TM 21467.76.000 1'~ Dint 0, DEVELOPER'S ACKNOWLEDGEMENT STATE OF TEXAS § COUNTY OF 1 P.n-Y1 § /This instrument was knowled d b fore e on the o ~ day of 200 ~ by n s & of '?B'lDe lopment Corporation on behalf of said co ora ion. a~rsY aowe =k MY COMMISSION EXPIRES June 27, 2010 Notary Pu i State of Texas (Seal) DEVELOPMENT AGREEMENT PAGE 23 LU4 R 1) Pce c LIST OF SCHEDULES AND EXHIBITS Schedule 1 Grantors--Waterline Easement Schedule 2 Grantors--Gravity Line Easement Schedule 3 Water and Wastewater Easements Exhibit A Ma of Austin Ranch Exhibit B Minimum Project Specifications (CP Engineering) Exhibit C Project Ma (CP Engineering) Exhibit D Tsai Tract Map, Survey, or Metes and Bounds Description Exhibit E Gravity Line Corridor Drawing Exhibit F Proposed License Agreement Exhibit F-1 Elevation Drawing for Monument Sign Exhibit G Project System Line Segment Drawing Exhibit H Fire Station Setback Drawing Exhibit I Boundary Adjustment Materials DEVELOPMENT AGREEMENT EXHIBIT F