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05-001-TIF OFFICIAL RECORD RESOLUTION NO. 05-001-TIF A RESOLUTION OF THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NO. ONE OF THE CITY OF SOUTHLAKE, TEXAS, APPROVING A DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY AND SL TS GRAND AVENUE, L.P. FOR REIMBURSEMENT FOR PUBLIC IMPROVEMENTS TO PROPERTY WITHIN REINVESTMENT ZONE NUMBER ONE WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A. Tax Code, Chapter 311 (the Act), on September 23, 1997, the Southlake City Council approved Ordinance No. 682, creating, establishing and designating Reinvestment Zone Number One, City of Southlake (hereinafter called the TIF District); and WHEREAS, SL TS Grand Avenue, L.P. (the Partnership) has acquired the Grand Avenue Property which is located in the TIF District and intends to develop the property for use as high quality, first class retail and office buildings, a hotel and a movie theater, together with ancillary areas and improvements; and WHEREAS, the Act authorizes the expenditure of funds derived within a reinvestment zone, whether from bond proceeds or other funds, for the payment of expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by a municipality consistent with the project plan of the reinvestment zone, which expenditures and monetary obligations constitute project costs, as defined in the Act; and WHEREAS, on August 17,1999, after approval of the Board, the Southlake City Council approved Ordinance No. 752 approving the Amended Tax Increment Reinvestment Zone Project Plan, and the Financing Plan; and WHEREAS, the City Council has authorized the execution of this Agreement for the construction of public improvements in accordance with the approved Project Plan and Financing Plan, and the Board of Directors wishes to authorize the execution of this Agreement for the construction of public improvements in accordance with the approved Project Plan and Financing Plan, and authorizing reimbursement to Partnership from the Tax Increment Fund for the construction of the public improvements under the conditions set forth herein; and WHEREAS, the Public Improvements to be constructed within the Grand Avenue Property, as set forth in the Agreement, are consistent with encouraging development of the TIF District and Reinvestment Zone in accordance with the purposes for its creation; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF REINVESTMENT ZONE NO. ONE OF THE CITY OF SOUTHLAKE, TEXAS, THAT: Page 1 SECTION 1. The terms and cond itions of the Development Agreement attached hereto as Exhibit A are hereby in all things approved. SECTION 2. This Resolution shall become effective from and after its passage. PASSED AND APPROVED ON THIS THE ?:/-J..DAY OF (Yl~. 2005. ~-4/ ATTEST: k'O-~ Board Secretary ",," 111111"" .." OUTu "" ....' <;:) n.~" ....' ~ ......... " .... 0 .- e. 'A\. ~ ~.. ..':' ~ ::::..... * ....o\'=- E!::i' \rn: -0. :x= ': ~ e;ta: ~ e. . If:/): ..~ e. .. ~ ~, .0........... ~~ <I, ," "III *** ",.... IIf'"..."," Page 2 EXHIBIT "A" Page 3 DEVELOPMENT AGREEMENT WITH SLTS GRAND AVENUE, L.P. FOR PUBLIC IMPROVEMENTS TO PROPERTY WITHIN REINVESTMENT ZONE NUMBER ONE, CITY OF SOUTH LAKE THIS DEVELOPMENT AGREEMENT ("Agreement") is entered into by and between the City of Southlake, a Texas municipal corporation of Tarrant County and Denton County, Texas (hereinafter called "City"), the Board of Directors of the Reinvestment Zone Number One, City of Southlake, Texas (hereinafter called "Board"), and SL TS Grand Avenue, L.P., a Texas Limited Partnership (hereinafter called "Partnership"). WIT N E SSE T H: WHEREAS, City recognizes the importance of its continued role in local economic development; and WHEREAS, in accordance with the provisions of the Tax Increment Financing Act, V.T.C.A. Tax Code, Chapter 311 (the "Act"), on September 23, 1997, the South lake City Council approved Ordinance No. 682, creating, establishing and designating "Reinvestment Zone Number One, City of South lake" (hereinafter called the "TIF District"); and WHEREAS, Partnership has acquired certain real property situated within the TIF District and intends to develop the property for use as "high quality, first class" retail and office buildings, a hotel and a movie theatre, together with ancillary areas and improvements; and WHEREAS, the Act authorizes the expenditure of funds derived within a reinvestment zone, whether from bond proceeds or other funds, for the payment of expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by a municipality consistent with the project plan of the reinvestment zone, which expenditures and monetary obligations constitute project costs, as defined in the Act; and WHEREAS, on August 17, 1999, after approval of the Board, the Southlake City Council approved Ordinance No. 752 approving the Amended Tax Increment Reinvestment Zone Project Plan (herein so called), and the Financing Plan (herein so called); and WHEREAS, pursuant to resolution adopted ot; - 001 - 11 r==; 2005, the Board authorized the execution of this Agreement for the construction of public improvements in accordance with the approved Project Plan and Financing Plan, and authorizing reimbursement to Partnership from ad valorem taxes collected for the Grand Avenue Property for the taxing units participating in the TIF and deposited into the Tax Increment Fund, and for South lake ad valorem taxes collected for business personal property within the Grand Avenue Property Improvements, forthe construction ofthe Public Improvements under the conditions set forth herein; and DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\SouthlakelAgreements\EDC Agreements\GrandAvenue Development. 030205. Final.wpd Page 1 of 17 WHEREAS, pursuant to Resolution No. 05-013, the City Council authorized the execution of this Agreement for the construction of public improvements in accordance with the approved Project Plan and Financing Plan, and authorizing reimbursement to Partnership from the Tax Increment Fund for the construction of the public improvements under the conditions set forth herein; and WHEREAS, the Public Improvements to be constructed within the Grand Avenue Property, as defined in Section 1 below, which is situated within the TIF District boundaries, as set forth in this Agreement, are consistent with encouraging development of the TIF District and Reinvestment Zone in accordance with the purposes for its creation and are in compliance with the ordinance creating such reinvestment zone adopted by the City and all applicable laws; and WHEREAS, Partnership and City have agreed thatfollowing completion ofthe Public Improvements, and upon Partnership's compliance with the provisions of this Agreement, the City shall acquire, and the Partnership shall convey the Public Improvements to the City, and City shall reimburse the Partnership in the manner contemplated by the Act; and WHEREAS, the reimbursement of funds advanced by Partnership for the cost of making Public Improvements as contemplated herein is consistent with and described in the Project Plan and Financing Plan; NOW, THEREFORE, in consideration of the mutual covenants and obligations herein, the parties agree as follows: SECTION 1. DEFINITIONS In this Agreement, the following words shall have the following meanings ascribed to them: AFFILIATED ENTITY - any person, firm, corporation, partnership or other entity owned, controlled or managed in whole or in part, by any person, firm, corporation, partnership or other entity, or any principal or shareholder in any such entity, excluding a taxing entity, with an interest in any of the real property located in the Reinvestment Zone. APPROVED PROJECT COSTS - the following costs incurred by Partnership in the design and construction of the Public Improvements: architectural and engineering fees, surveying fees, construction labor, construction materials and building materials and supplies. It does not include any cost incurred from goods or services provided by an Affiliated Entity, legal fees, or construction management fees or project management fees. ECONOMIC DEVELOPMENT AGREEMENT - the Economic Development Program Agreement entered between Partnership and City pursuant to 9380.001 of the Texas Local Gov't Code executed on even date herewith, and attached as Exhibit "A." DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandA venue Development. 030205 .Final. wpd Page 2 of 17 EVENT OF BANKRUPTCY OR INSOLVENCY - the dissolution or termination of Partnership's existence as a going business, insolvency, appointment of received for any part of Partnership's property and such appointment is not terminated within 60 days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Partnership and such proceeding is not dismissed within 60 days after the filing thereof. GRAND AVENUE PROPERTY - the property, consisting of 41.350 acres, upon which the Real and Personal Property Improvements will be constructed, as described in Exhibit "B", attached hereto and incorporated herein. GRAND AVENUE PROPERTY IMPROVEMENTS - the real and personal property improvements, including retail and office buildings, hotel building and movie theater building to be constructed on the Grand Avenue Property. It does not include the Public Improvements. HIGH QUALITY, FIRSTCLASS-developmentwhich is in conformance with the site plan approved by, or to be approved by the City Council of City for the development and consistent with Town Square operations as of the date of execution of this Agreement. PARKING GARAGE WEST PROPERTY -the property upon which Parking Garage West is to be constructed, as delineated on Exhibit "0", attached hereto and incorporated herein. PARKING GARAGE EAST PROPERTY - the property upon which Parking Garage East is to be constructed, as delineated on Exhibit "E", attached hereto and incorporated herein. PARKING GARAGE PROPERTY OPERATING AGREEMENT - the agreement between the Partnership and the City delineating the rights, responsibilities and restrictions regarding the operation of the Parking Garage Properties, as attached hereto as Exhibit "I". PARKING GARAGE PROPERTY - the property upon which Parking Garage West and Parking Garage East are to be constructed, together with the Parking Garages, as delineated on Exhibits "0" and "E", attached hereto and incorporated herein. PROJECT PLAN AND FINANCING PLAN or PROJECT PLAN - the project and financing plan approved by Ordinance No. 752 of the City of South lake. PUBLIC IMPROVEMENT PROPERTY - the property upon which the Public Improvements, including the Parking Garages, are to be constructed, as described in Exhibit "C". DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:ISouthlakelAgreements\EDC AgreementslGrandAvenue Development.030205. Final. wpd Page 3 of 17 PUBLIC IMPROVEMENTS - the parks and Parking Garages to be constructed on the Public Improvement Property as depicted and described on Exhibit "C" attached hereto and incorporated herein, as well as the streets, sidewalks, water, wastewater and stormwater improvements Partnership is required to construct for the development of the Grand Avenue Property. REIMBURSABLE PROJECT COSTS - the total amount to be paid by the City for the Public Improvements acquired from the Partnership. TAX INCREMENT FUND or TIF - the Tax Increment Fund of the Southlake Reinvestment Zone NO.1. TIF DISTRICT - the property within Southlake Reinvestment Zone NO.1. UNDER CONSTRUCTION - construction in which the following conditions have been met: building permits have been issued, the foundation has been poured and vertical construction is occurring, i.e., walls have been erected and construction is proceeding continuously. SECTION 2. PARTNERSHIP'S OBLIGATIONS A. In conjunction with the long-term development plan for the TI F District, as described in the Project Plan, Partnership agrees to design and construct certain Public Improvements, including streets, utility improvements and the Parking Garages and the parks within the Grand Avenue Property. A description of the Project is contained in the approved Project Plan and Financing Plan. The Project is located entirely within the limits of the City and within the TIF District and all Public Improvements shall be constructed within Public Improvement Property, existing or future public property, public rights-of-way, or easements. B. Partnership shall submit to the City for its review and approval plans for the design of the following: 1. the Public Improvements to be constructed within the Public Improvements Property; and 2. the theater planned to be constructed within the Grand Avenue Property. C. Partnership shall not be entitled to payment unless the City Council has approved the design and plans for the Public Improvements described in Subsection B. 1 and 2 above and the plat depicting the streets and sidewalks and the City has accepted the conveyance of the parks, streets, sidewalks, water, wastewater and stormwater improvements, and issued a certificate of occupancy for the Parking Garages, and the other requirements for payment are satisfied. DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development.030205. Final. wpd Page 4 of 17 D. Before the final plat is recorded, Partnership shall: 1. construct and dedicate the infrastructure and right-of-way and easements required by the City's Ordinances, including but not limited to streets and sidewalks, water, wastewater and stormwater improvements and dedicate the streets to the City by general warranty deed in the form attached as Exhibit "H", and 2. construct the proposed parks in accordance with the design approved by the City and in compliance with all applicable ordinances, and dedicate the same to the City by general warranty deed in the form attached as Exhibit "G". E. Partnership agrees that the City's specifications for public and private improvements are minimum standards only and Partnership shall retain an engineer for purposes of review of City specifications. If, in the engineer's opinion, additional technical design requirements, in addition to the City specifications, are required to design the Public Improvements sufficient for local conditions, Partnership will include such design requirements in the specifications for the Public Improvements. The City shall be expressly named as an intended third party beneficiary in the contract between the Partnership and the engineer. F. Partnership shall design and construct all improvements on the Grand Avenue Property so as to comprise a high quality, first class retail and office development, including a high quality first class hotel and theater, and such other uses as City may approve over time. The hotel shall be constructed to include at a minimum, 250 rooms and the following amenities: 1. a full service restaurant; 2. a downtown service bar; 3. a swimming pool with jacuzzi; 4. a conference center of a size of at least 15,000 square feet; 5. a spa; 6. a workout facility; and 7. such other amenities as are required in order to obtain a franchise to operate a hotel under the "Hilton" Hotels brand. G. herein: Before City becomes obligated to make payment to Partnership as set forth 1. Partnership shall: a. be in compliance with the terms and conditions of this Agreement; b. be in compliance with the Economic Development Agreement; and DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\SouthlakelAgreements\EDC Agreements\GrandA venue Development.030205. Final. wpd Page 5 of 17 c. convey the: (1) Parking Garage Properties to the City in accordance with the provisions of Section H. below; (2) streets to the City by general warranty deed in the form as attached hereto as Exhibit "H"; (3) parks to the City by general warranty deed in the form as attached hereto as Exhibit "G"; and d. have caused all necessary parties, save Tarrant County to have executed and recorded in the Real Property Records of Tarrant County the Parking Garage Property Operating Agreement; 2. the South lake Town Square Association or its successor shall have executed and recorded deed restrictions regarding parking in the Parking Garages, with such consents as are required by any lenders or owners, as are contained in the Parking Garages Operating Agreement and which shall be binding upon the owners and occupants of each parcel of land located in any phase of the Town Square Addition; and 3. Tarrant County shall have executed and recorded its consent to the termination of its rights pursuant to the Irrevocable Parking License, Maintenance and Operation Agreement filed in Volume 17206, page 198 of the Tarrant County Real Property Records; In the event Partnership is entitled to payment, City shall pay the Partnership an amount as determined in Section 3. In no event shall the City's payment hereunder exceed $7,500,000. H. Partnership shall convey the Parking Garage Property to the City by Special Warranty Deed, in the form as attached hereto as Exhibit "F", conveying good and marketable title in fee simple to the Parking Garage Property, free and clear of any and all liens, encumbrances, conditions, assessments, and restrictions other than as provided in this Section. At the time of the conveyance, Partnership shall deliver to City: 1. at Partnership's sole expense, a Texas Owner's Title Policy, issued by Rattikin Title Company, 201 Main Street, Suite 800, Fort Worth, Texas 76102 in the amount of $13,000,000, insuring the City's fee simple title to the Parking Garage Property, subject only to those title exceptions listed in this Section, if any, such other exceptions as may be approved in writing by City, provided, however: (a) the boundary and survey exceptions shall be deleted; (b) the exception as to restrictive covenants shall be endorsed "None of Record"; and the exception as to the lien for taxes shall be limited to the year of closing and shall be endorsed "Not Yet Due and Payable"; DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:ISouth lakelAgreementslEDC AgreementslGrandA venue Development.030205. Final. wpd Page 6 of 17 2. releases from the contractors, subcontractors and suppliers of materials who have provided labor and materials for the Public Improvements showing that they have been paid for such labor and materials; 3. an assignment of all contractors' warranties, if any, and all performance and payment bonds; and 4. funds in an amount as determined by the City's Director of Finance sufficient to pay roll-back ad valorem taxes from all taxing units which will become due on the Grand Avenue Property, including the property upon which the Public Improvements are to be constructed, due to the change of use from agricultural to nonagricultural use. To the extent that all or a portion of such taxes have already been paid to the applicable taxing entities as of the date of City's payment made under this Agreement, Partnership shall be deemed to have satisfied this condition. SECTION 3. CITY PARTICIPATION A. Partnership shall: 1. submit, or cause to be submitted, plans and specifications for the Public Improvements to the City for review and approval prior to the commencement of construction thereof. Such plans and specifications and construction shall be in conformance with the City of South lake's design standards, any additional design requirements recommended by Partnership's engineers and/or architects pursuant to Section 2.E. above and all applicable ordinances; 2. construct the Public Improvements and all other improvements and infrastructure required by City ordinances, and the Grand Avenue Property Improvements within the Grand Avenue Property; 3. submit to City evidence of Approved Project Costs of (I) at least $1,000,000 for the construction of park and park improvements within the Grand Avenue Property; and (ii) at least $6,500,000 for the streets, utility improvements and Parking Garage West. 4. comply with all other conditions and obligations in this Agreement. B. To determine the Approved Project Costs, City shall have the right to inspect the site during construction, and to inspect, during the term of this Agreement, any and all records of Partnership, Partnership's agents, employees, contractors or subcontractors and shall have the right to require Partnership to submit any necessary information, documents, invoices, receipts or other records relating to costs of the Public Improvements. DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development.030205. Final. wpd Page 7 of 17 C. Provided that: 1. Agreement and Partnership is in compliance with all terms and conditions of this 2. the Tarrant Appraisal District shall assess a value of at least $37,050,000 for the Grand Avenue Property Improvements on or before July 25,2006 (this date being subject to extension for a delay in receiving a certified assessment from Tarrant Appraisal District for reasons beyond the Partnership's control), and 3. at least 360,000 square feet of buildings in the Grand Avenue Property, are under construction on January 1, 2006, then Partnership shall be entitled to payment from the City an amount calculated as follows (but in any event not more than $7,500,000): assessed value Payment due Partnership = ------------------------------------ x $7,500,000 $74,100,000 By way of example, if the assessed value for 2006 is $37,050,000, City shall make payment to Partnership for Approved Project Costs in the amount of $3,750,000. In the event that the Tarrant Appraisal District has not assessed a value of at least $37,050,000 for the Grand Avenue Property Improvements by this date, or 360,000 square feet of buildings is not under construction, or Partnership is not in compliance with the terms of this Agreement, Partnership shall not be entitled to receive a payment in 2006. D. I n the event that: 1. Partnership is entitled to receive and receives a partial payment in 2006, pursuant to Subsection C above, and 2. Agreement, and Partnership is in compliance with the terms and conditions of this 3. the Tarrant Appraisal District shall assess a value of at least $74,100,000 for the Grand Avenue Property Improvements on or before July 25,2007 (this date being subject to extension for a delay in receiving a certified assessment from Tarrant Appraisal District for reasons beyond the Partnership's control), then City shall make payment to Partnership for Approved Project Costs in the amount of $7,500,000 less the partial payment made in 2006. For example, if the assessed value in 2006 is $66,690,000, pursuant to which City has made payment to Partnership in the amount of $6,750,000, and the assessed value in 2007 is $75,000,000, City shall make a final payment to Partnership for Approved Costs in the amount of $750,000 in 2007. DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandA venue Development.030205. Final. wpd Page 8 of 17 E. In the event: 1. Partnership is: a. not entitled to receive a payment in 2006; and b. is in compliance with all terms and conditions of this Agreement; and 2. the Tarrant Appraisal District shall assess a value of at least $37,050,000 for the Grand Avenue Property Improvements on or before July 25,2007 (this date being subject to extension for a delay in receipt of a certified assessment from Tarrant Appraisal District for reasons beyond the Partnership's control), and 3. at least 360,000 square feet of buildings in the Grand Avenue Property are under construction on January 1, 2007, then Partnership shall be entitled to payment from the City of an amount calculated as follows (but in any event not more than $6,520,000): assessed value Payment due Partnership = ------------------------------------ x $6,520,000 $74,100,000 F. In the event that: 1. Partnership: a. did not qualify for payment in 2006 but qualified for and received a payment in 2007, and b. is in compliance with the terms and conditions of this Agreement; and 2. the Tarrant Appraisal District shall assess a value of at least $74,100,000 for the Grand Avenue Property Improvements on or before July 25, 2008 (this date being subject to extension for a delay in receipt of the certified assessment from Tarrant Appraisal District for reasons beyond the Partnership's control), then City shall make payment for Approved Project Costs to Partnership of $6,520,000 less the amount of the City's payment in 2007. G. In the event that: 1. Partnership did not qualify for payment in 2006 or 2007, and: DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development.030205.Final. wpd Page 9 of 17 2. Partnership is otherwise in compliance with the terms and conditions of this Agreement; and 3. the Tarrant Appraisal District shall assess a value of at least $74,100,000 for the Grand Avenue Property Improvements on or before July 25,2008 (this date being subject to extension for a delay in receipt of the certified assessment from Tarrant Appraisal District for reasons beyond the Partnership's control), then Partnership shall be entitled to payment from the City of $5,570,000. H. If the Tarrant Appraisal District does not assess a value of at least $74,100,000 for the Grand Avenue Property Improvements on or before July 25,2008 (this date being subject to extension for a delay in receipt of the assessment from Tarrant Appraisal District for reasons beyond the Partnership's control), Partnership shall not be entitled to receive a payment or, if payment was made in 2007, a further payment for Approved Project Costs, and this Agreement shall terminate without further action by either party and City shall have no obligation to make any payments to Partnership under this Agreement. Partnership shall not be required to repay the City for any payment made hereunder. I. If Partnership shall satisfy the requirements for payment of the Approved Project Costs, City shall make payment to Partnership on or before October 31 of the year in which Partnership becomes entitled to such payment (this date being subject to extension for a delay in receipt of the assessment from Tarrant Appraisal District for reasons beyond the control of either party). Nothing in this Agreement shall require City to approve payment to Partnership from any source other than the Tax Increment Fund. This Agreement in no way obligates the General Fund or any other funds of the City. J. City hereby declares that the reimbursement procedure outlined above is necessary to implement the Project Plan. SECTION 4. TERM The term of this Agreement shall begin on the effective date, as provided in Section 13 hereof and shall terminate upon the earlier of: (a) the complete performance of all obligations and conditions precedent by parties to this Agreement; or (b) the date of the City's receipt of the Tarrant County Appraisal District Tax Roll for 2008 which does not assess a value of at least $74,100,000 for the Grand Avenue Property Improvements; or (c) upon the City's termination of this Agreement pursuant to Section 6 hereof. SECTION 5. AUTHORITY; COMPLIANCE WITH LAW A. Partnership hereby represents and warrants to the City that: 1 . Partnership has full lawful right, power and authority to execute and deliver and perform the terms and obligations of this Agreement; and DEVELOPMENT AGREEMENT - sL Ts-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:ISouthlakelAgreementslEDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 10 of 17 2. that the execution and delivery of this Agreement has been duly authorized by all necessary action by the Partnership; 3. this Agreement constitutes the legal, valid and binding obligation of Partnership, and is enforceable in accordance with its terms and provisions; 4. it is the sole owner of the Public Improvement Property and Grand Avenue Property and any necessary consents of approval for itto enter into this Agreement and the related Agreements have been obtained; and 5. there are no leases, tenancies, rental agreements in effect which would be violated by the execution and performance of this Agreement, the Economic Development Program Agreement or the Parking Garage Property Operating Agreement. B. Partnership represents and warrants that during Partnership's ownership of the Property (1) no excavation of the Public Improvement Property occurred; (2) no landfill was deposited on or taken from the Public Improvement Property; (3) no construction debris or other debris (including, without limitation, rocks, stumps, and concrete) was buried upon the Public Improvement Property; and (4) no toxic wastes or "hazardous substances" as that term is defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1988, or petroleum products and derivatives thereof, were deposited on the Public Improvement Property. Partnership further represents and warrants that none ofthe foregoing occurred on the Public Improvement Property prior to Partnership's ownership of the Public Improvement Property. C. Notwithstanding any other provision of this Agreement, Partnership shall comply with all federal and state laws, and City ordinances in the development, construction and operation of the Property and Grand Avenue Property Improvements. D. The foregoing representations and warranties shall survive the execution and Agreement and continue throughout the Term. SECTION 6. DEFAULT AND REMEDIES A. In the event: (1) Partnership fails to complete or cause the completion of the Public Improvements described in the Project Plan; (2) Partnership has delinquent ad valorem or sales taxes owed to the City (provided that Partnership retains the right to timely and properly protest and/or contest of any such taxes); (3)f any Event of Bankruptcy or Insolvency by Partnership occurs; or (4) Partnership breaches any of the terms and conditions of this Agreement, then Partnership after the expiration of the notice and cure periods described herein, shall be in default of this Agreement. In the event of such a default, City shall give Partnership written notice of such breach and/or default. B. If the Partnership has not cured such breach or default within 30 days after receipt of such notice, the City may terminate this Agreement by written notice to DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\SouthlakelAgreements\EDC Agreements\GrandA venue Development.030205. Final. wpd Page 11 of 17 Partnership, and the City shall have no further obligation to Partnership; provided however, that the City may, in its total discretion, grant Partnership an extension of 30 days to cure the default if Partnership demonstrates, to the satisfaction of the City Council, that: (1) the default cannot be cured by the payment of monies and (2) cannot be cured within 30 days, and (3) the Partnership is diligently pursuing cure. Partnership may not request more than three 30 day extensions. C. If a default shall occur and continue, after 30 days written notice to cure default, the party not in default shall have the right to exercise any and all rights available to such party at law or in equity, including the right to seek such equitable relief such as injunction or mandamus as the non-defaulting party may be entitled. D. No waiver or any breach of any term or condition of this Agreement shall be construed to waive any subsequent breach of the same or any other term or condition of this Agreement. Any waiver of any term or condition of this Agreement must be in writing and approved by the City Council of South lake. E. The termination of this Agreement shall not affect the transfer of property to City or otherwise relieve Partnership of its obligations hereunder or under the Development Agreement or Parking Garage Property Operating Agreement. SECTION 7. RIGHT OF OFFSET City may, at its option, offset any amounts due and payable to Partnership under this Agreement against any debt (including taxes) lawfully due to City, or any other taxing unit participating in the TIF District, from Partnership, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of whether or not the debt in question has been reduced to judgment by a court. SECTION 8. VENUE AND GOVERNING LAW This Agreement is performable in Tarrant County, Texas and venue of any action arising out of this Agreement shall be exclusively in Tarrant County, Texas. This Agreement shall be governed and construed in accordance with the laws of the States of Texas. SECTION 9. GIFT TO PUBLIC SERVANT OR TO PARTNERSHIP REPRESENTATIVE A. Each party hereto represents to the other that it has not offered, conferred, or agreed to confer and that it will not offer, confer or agree to confer in the future any benefit upon an employee or official of the other party. B. Notwithstanding any other legal remedies, City may obtain reimbursement for any expenditures made to Partnership as a result of the improper offer, agreement to DEVELOPMENT AGREEMENT - sL Ts-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 12 of 17 confer, or conferring of a benefit to a City employee or official. SECTION 10. BINDING AGREEMENT; ASSIGNMENT A. The terms and conditions of this Agreement are binding upon the successors and assigns of the parties hereto. The provisions of this Agreement are hereby declared covenants running with the Grand Avenue Property and are fully binding on the Partnership and each and every subsequent owner of all or any portion of the Property and shall be binding on all successors, heirs, and assigns of the Partnership which acquire any right, title, or interest in or to the Grand Avenue Property, or any part thereof. B. Any person who acquires any right, title, or interest in or to the Grand Avenue Property, or any part hereof, thereby agrees and covenants to abide by and fully perform the provision of this Agreement with respect to the right, title or interest in such Property. A copy of this Agreement shall be recorded in the deed records of Tarrant County. C. City agrees that Partnership may, upon written notice to the City, assign its rights to receive Program Payments under this Agreement to any third party. The Partnership may not assign other rights and obligations hereunder, which shall be at the discretion of the City. This Agreement may not be assigned without the express written consent of the City. Any assignment shall be contingent upon the assignee's agreement to comply with the provisions of this Agreement and the Economic Development Agreement. The City agrees to execute such documentation as reasonably necessary to evidence the consent of the City to such assignment in such form as is acceptable to the City or, at the request of a third-party lender, to enter into a tri-party agreement among the City, such third-party lender and Partnership, evidencing their agreement with respect to their respective rights and obligations under this Agreement. Any such agreement shall not become effective unless the City has received reimbursement for any legal or other professional fees incurred in the review of any such agreement(s). SECTION 11. INDEMNIFICATION A. PARTNERSHIP EXPRESSLY AGREES TO FULLY AND COMPLETELY DEFEND, INDEMNIFY, AND HOLD HARMLESS THE CITY, AND ITS OFFICERS, AND EMPLOYEES, AGAINST ANY AND ALL CLAIMS, LAWSUITS, LIABILITIES, JUDGMENTS, COSTS, AND EXPENSES FOR PERSONAL INJURY (INCLUDING DEATH), PROPERTY DAMAGE OR OTHER HARM, DAMAGES OR LIABILITY FOR WHICH RECOVERY OF DAMAGES 15 SOUGHT, SUFFERED BY ANY PERSON OR PERSONS, THAT MAY ARISE OUT OF OR BE OCCASIONED BY ANY NEGLIGENT, GROSSLY NEGLIGENT, WRONGFUL, OR STRICTLY LIABLE ACT OR OMISSION OF THE PARTNERSHIP OR ITS AGENTS, EMPLOYEES, OR CONTRACTORS, ARISING OUT IN THE PERFORMANCE OF THIS CONTRACT, REGARDLESS OF WHETHER OR NOT THE NEGLIGENCE, GROSS NEGLIGENCE, WRONGFUL ACT, OR FAULT OF THE CITY OR ITS OFFICERS, AGENTS, OR EMPLOYEES, CONTRIBUTES IN ANY WAY TO THE DAMAGE, INJURY, OR OTHER HARM. THE REQUIREMENT OF THE DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandA venue Development. 030205. Final. wpd Page 13 of 17 PARTNERSHIP TO DEFEND THE CITY ALSO UNCONDITIONALLY APPLIES REGARDLESS OF WHETHER OR NOT THE NEGLIGENCE, GROSS NEGLIGENCE, OR FAULT OF THE CITY OR ITS OFFICERS, AGENTS, OR EMPLOYEES CONTRIBUTES IN ANY WAY TO THE DAMAGE, INJURY, OR OTHER HARM. Nothing in this paragraph may be construed as waiving any governmental immunity available to the City under state law. This provision is solely for the benefit of the Partnership and the City and is not intended to create or grant any rights, contractual or otherwise, in or to any other person. B. It is acknowledged and agreed by the parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the parties. The City, their past, present and future officers, elected officials, directors, employees and agents of the City do not assume any responsibility to any third party in connection with the Partnership's construction of the Public Improvements or other infrastructure Partnership shall construct in connection with the Grand Avenue Property. SECTION 12. MISCELLANEOUS MATTERS A. Time is of the essence of this Agreement. The parties hereto will make every reasonable effort to expedite the subject matters hereof and acknowledge that the successful performance of this Agreement requires their continued cooperation. B. This Agreement is made subject to the provisions of the Charter and ordinances of City, as amended, and all applicable state and federal laws. C. This Agreement shall not be construed against the drafting party. D. 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. E. The captions to the various clauses of this Agreement are for informational purposes only and shall not alter the substance of the terms and conditions of this Agreement. F. This Agreement, together with the Agreements designated as Exhibits hereto, embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties and relating to matters in this Agreement, and except as otherwise provided herein cannot be modified without written agreement of the parties to be attached and made a part of this Agreement. G. Any notice to be given or served hereunder or under any document or instrument executed pursuant hereto shall be in writing and shall be (1) delivered personally, with a receipt request therefore; or (2) sent by a nationally recognized overnight courier service; or (3) delivered by United States certified mail, return receipt requested, postage prepaid. All notices shall be addressed to the respective party at its address set forth below, and shall be effective (a) upon receipt or refusal if delivered personally; (b) one DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development.030205.Final. wpd Page 14 of 17 business day after depositing, with such an overnight courier service or (c) two business days after deposit in the United States mail, if mailed. Any party hereto may change its address for receipt of notices by service of a notice of such change in accordance with this subsection. If intended for Board, to: Chair, Board of Directors Reinvestment Zone No. One 1400 Main Street, Suite 460 Southlake, Texas 76092 If intended for City, to: City Manager City of Southlake 1400 Main Street, Suite 460 South lake, Texas 76092 If intended for Partnership, to: SL TS Grand Avenue, L.P. 1256 Main Street, Suite 240 South lake, Texas 76092 Attn: Brian R. Stebbins H. Partnership hereby agrees that all property dedicated to the City and all public facilities constructed pursuant to this Agreement are reasonably necessary to serve the subdivision and are roughly proportional to the need generated by the subdivision for such land and facilities. Partnership hereby acknowledges its right to seek a waiver or variance to the dedication and/or construction requirements and that it has voluntarily chosen not to pursue such remedies; and Partnership waives any claim for taking of property to be dedicated or transferred to the City pursuant to this Agreement, or any other constitutional or statutory claim, that it may have under either the Texas or United States Constitutions or statutes. I. This Agreement is for the benefit of the parties hereto and there are no intended third party beneficiaries to this Agreement, the Economic Development Program Agreement, or the Parking Garage Property Operating Agreement. SECTION 13. EFFECTIVE DATE This Agreement shall become effective upon the last to occur of the following: the execution of this Agreement by all parties and the recordation in the Tarrant County Real Property Records of the Parking Garage Property Operating Agreement executed by all parties. rrJ... . . EXECUTED and effective as of the~ day of (Y1~ , 2005 by Board signing by and through its Chairman, duly authorized to execu~esolution No. D5'- ool--;Tr,::: by City, signing by and through its Mayor, duly authorized to execute same by Resolution No. O~.o,~ , and by Partnership, acting through its duly authorized officials. DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\SouthlakelAgreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 15 of 17 BOARD OF DIRECTORS OF THE REINVESTMENT ZONING NO. ONE, CITY OF SOUTH LAKE, TEXAS SL TS GRAND AVENUE, L.P., A TEXAS LIMITED PARTNERSHIP By: ~pe; Keith Shankland, Board Chairman By: SL TS Grand Avenue Genpar, L.L.C., a Texas limited liability company, its general partner By: Cooper & Stebbins, L.P., a Texas limited partnership, its member CITY OF SOUTH LAKE, TEXAS ~ .~ y. ~ ~y w~ ~anss~ Mayor By: CS Town Centers, LLC, a Texas limited liability company, its general partner By: CS Town Centers, LLC, a Texas limited liability company, its general partner By: B~ e Managing Member ATTEST: By:k(J~ Lori Farwell, City Secretary """"1"",,, ......" OU THl...<f "'" ....' ~ ......co ~.L\. 'I, ~ ~ c. q,.~....., ~ 0 .0- f'Q.o'" -' ~ .... 0." ." -,)... * .tt\~ =,...: ~~: _ c . _ ;<.JC : = ; ". ':t:nE '=' Si~ o. ~ ~.'$ ..c ~ -:.., QO.~.e..~S. ,~ .r, "",,- "'" *** ,..... ""II.U"" DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\SouthlakelAgreements\EDC Agreements\GrandAvenue Development.030205.Final.wpd Page 16 of 17 EXHIBIT "A" ECONOMIC DEVELOPMENT PROGRAM AGREEMENT BETWEEN THE CITY AND PARTNERSHIP DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:ISouthlake\AgreementsIEDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 17 of 25 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT This Economic Development Program Agreement ("Agreement") is made and entered into by and between the City of Southlake, Texas (the "City"), and SL TS Grand Avenue, L.P., a limited partnership, (the "Partnership"). WIT N E SSE T H: WHEREAS, on March 1, 2005, the City adopted an Economic Development Incentives Program with Resolution No. 05-013 establishing an Economic Development Program pursuant to Section 380.001 of the Texas Local Government Code ("Section 380.001 "), the "Program"; and WHEREAS, the Partnership desires to participate in the Program by entering into this Agreement and constructing a new business enterprise; and WHEREAS, the City Council finds and determines that this Agreement will effectuate the purposes setforth in the Program, and that Partnership's performance of its obligations herein and that the expenditure of the monies provided for herein will promote local economic development and stimulate business and commercial activity in the City; NOW, THEREFORE, in consideration of the mutual benefits and premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 1. Authorization. The City has concluded that this Agreement is authorized by Section 380.001, and is authorized by the City's Economic Development Incentives Program. 2. Definitions. "Business Day" - any day other than a Saturday, Sunday, or City holiday, or any day on which national banks in Southlake, Texas are authorized to close. "Commencement Date" - means the date the City determines that 360,000 square feet of buildings, excluding the Parking Garage Improvements, and including the theater and hotel, are under construction in the Grand Avenue Property. "Development Agreement" - the Development Agreement between the City, the Board of Directors of Reinvestment Zone No. One, City of South lake, and SL TS Grand Avenue, L.P. for Public Improvements to Property within Reinvestment Zone Number One, City of South lake, executed on even date herewith and attached hereto as Exhibit "C". "Effective Date" - the date that all parties have executed this Agreement and the Development Agreement between the Partnership, the City and the Board of Directors of Reinvestment Zone No. One becomes effective. W :\South lakelAgreements\EDC Agreements\SL TS .380 .030205 .Fi nal. wpd Page 1 of 17 "Event of Bankruptcy or Insolvency" - the dissolution or termination of Partnership's existence as a going business, insolvency, appointment of receiver for any part of Partnership's property and such appointment is not terminated within 60 days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Partnership and such proceeding is not dismissed within 60 days after the filing thereof. "Grand Avenue Property" or "Premises" - the property upon which the Grand Avenue Property Improvements will be constructed, as described in Exhibit "A", attached hereto and incorporated herein. "Grand Avenue Property Improvements" - the real and personal property improvements, excluding the Public Improvements, as that term is defined in the Development Agreement, to be constructed on the Grand Avenue Property. "High quality. first class" - has the same meaning as defined in the Development Agreement. "Initial Payment Calculation Date" - the date upon which the City receives from Tarrant Appraisal District the certified assessment for the Grand Avenue Property which reflects an assessed value of at least $74,100,000. "Parking Garage Improvements" - Parking Garage West and Parking Garage East. "Parking Garage Property Operating Agreement" - has the same meaning as defined in the Development Agreement, more specifically described in Exhibit "I" to the Development Agreement. "Parking Garaqe West" - a parking garage of approximately 248,000 square feet to be constructed on the Grand Avenue Property designed for approximately 800 parking spaces, more specifically described on Exhibit "0" to the Development Agreement. "Parking Garage East" - a parking garage of approximately 315,000 square feet to be constructed on the Grand Avenue Property designed for approximately 900 parking spaces, more specifically described on Exhibit "E" to the Development Agreement. "Parking Garage Property" - the property upon which Parking Garage West and Parking Garage East are to be constructed, together with the East and West Parking Garages, as more specifically described in Exhibit "0" and "E" to the Development Agreement. "Person" - an individual or a corporation, partnership, trust, estate, unincorporated organization, association, or other entity. "Program" - the meaning set forth in the recitals to this Agreement. W:\South lake\Agreements\EDC Agreements\SL TS. 380 .030205. Final.wpd Page 2 of 17 "Program Payment" - the payment by the City calculated as set forth in Section 5 of this Agreement. "Proiect" - the acquisition and development of first class, high quality retail and office buildings, hotel building and movie theater building constructed on the Grand Avenue Property. "Public Imorovements"- the parks and Parking Garage Improvements to be constructed on the Public Improvement Property as described in the Development Agreement, as well as the streets, sidewalks, water, wastewater, and stormwater improvements Partnership is required to construct for the development of the Grand Avenue Property and dedicate to the City. "Public Imorovement Debt" - is the debt issued by the City to pay Partnership pursuant to Section 3 of the Development Agreement. "Retailer" - any "retailer" within the meaning of Section 151.008 of the Texas Tax Code, as amended, to the extent said Retailer is located within the corporate limits of Southlake. "Sale" - the meaning set forth in Section 151.005 of the Texas Tax Code, as amended. "Sales Tax Reoort" - the report from the office of the Texas Comptroller which shows the amount of tax paid during the preceding calender quarter by each person doing business on the Premises. "Sales Tax Revenues" - gross revenues of the City from the sales and use taxes imposed by the City as a result of Taxable Sales. For this purpose, "gross revenues of the City" shall include all sales and use taxes imposed and r~ceived by the City under Chapter 321 of the Texas Tax Code, or its successor statute, excluding sales and use taxes imposed for the benefit of a corporation created under Section 48, Article 5190.6 of the Texas Revised Civil Statutes, hotel occupancy taxes imposed pursuant to Chapter 156 of the Tax Code, or sales taxes imposed pursuant to Chapter 363 of the Texas Local Government Code. It does not include any sales and use tax collected pursuant to a tax adopted under a statute or ordinance enacted by the State or the City after the effective date of this Agreement. "Sales Tax Schedule" - a schedule detailing the Sales Tax Revenues from Sales occurring during a Subject Quarter. "Section 380.001" - the meaning set forth in the recitals to the Agreement. "Shortfall Amount" - means the total of the following: W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 3 of 17 ._,.,"...,_~c~_._____--..-....._>~.=".~...~___.___,.,___... (a) the dollar amount equal to the City's annual debt service payment to finance the Public Improvement Debt, on a calendar year basis,less the amount of ad valorem tax revenues collected for Tarrant County, the City, the Hospital District and the College District attributable to the Grand Avenue Property, also on a calendar year basis, (By way of example, if in 2010, the ad valorem tax revenues attributable to the Grand Avenue Property collected for Tarrant County, the City, the Hospital District and the College District are $725,000, and the annual debt service payment is $775,000, the Shortfall Amount under this subsection (1) is $50,000); plus (b) the total of the following: (1) the dollar amount equal to any hotel occupancy taxes levied upon the hotel located on the Grand Avenue Property and which are not paid before the delinquency date (by way of example, if hotel occupancy taxes of $100,000.00 are due on February 1, 2009 and are not paid by said date, the Shortfall Amount under this subsection (2)(1) is $100,000.00); plus (2) if the hotel is not open for business during any portion of any calendar quarter, an amount equal to the hotel occupancy tax levied for the same calendar quarter of the most recent year the hotel was open for business, or if the hotel was not open for that entire calendar quarter, the most recent calendar quarter during which the hotel was open for the entire quarter, pro rated for the period the hotel is not open for business by multiplying the number of days the hotel was not open for business and dividing by ninety days (by way of example, if the hotel is not open for business from January 1 through March 1, 2009, and the hotel occupancy tax for the same Quarter during 2008 was $24,000.00, the Shortfall Amount under this subsection (2)(ii) is $24,000.00 multiplied by 60 (the number of days the hotel is not open for business) and divided by 90 (the approximate number of days in the quarter), or $16,000.00). In calculating the Shortfall Amount, all annual amounts shall be based on the calendar year. "Subiect Quarter" - calendar quarter representing January 1 through March 31, April 1 through June 30, July 1 through September 30, or October 1 through December 31. "Taxable Sales" - any Sale by a Retailer located, or to be located, on the Premises. liT erm" - has the meaning set forth in Section 3 of this Agreement. "Under Construction" - has the meaning set forth in the Development Agreement. W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 4 of 17 3. Term. This Agreement shall be effective as of the Effective Date, and unless terminated earlier pursuant to Section 4(c), 4(d) or Section 7, shall remain in full force and effect until December 31,2018; provided however, if Partnership is in compliance with this Agreement, it shall be entitled to receive the final Program Payment for the Subject Quarter ending December 31, 2018. 4. Covenants of Partnership. (a) In consideration of City agreeing to pay Partnership monies in accordance with the terms and conditions of this Agreement, Partnership agrees to: (1) design and construct the Public Improvements in accordance with the specifications approved by the City, and as approved under the Development Agreement, and ordinances of the City; and (2) dedicate the Public Improvements to the City; (3) execute or cause to be executed by the appropriate parties the Parking Garage Property Operating Agreement, a copy of which is attached hereto as Exhibit "0"; (4) construct or cause to be constructed real property improvements and place personal property on the Grand Avenue Property in the amount so as to receive from the Tarrant Appraisal District: a. a minimum assessed value of at least $74,100,000 on the Grand Avenue Property Improvements for 2008. (5) occupy and operate or cause to be occupied and operated the Grand Avenue Property Improvements for high quality, first class retail, office, entertainment uses, and such other uses as the City may approve, for at least twelve years after the Commencement Date; and (6) cause to be occupied and operated the hotel on the Grand Avenue Property for at least twelve years after the Commencement Date, provided however, a default in this obligation shall not be deemed to have occurred if the hotel is closed, Partnership is actively seeking a new hotel for the site and the hotel is not closed for more than 24 months; (7) comply with: a. all applicable federal and state laws and local ordinances in the construction, operation and maintenance of the Grand Avenue Property; and b. the provisions of the Development Agreement; and W:\Southlake\Agreements\EDC Agreements\SL TS. 380 .030205.Final. wpd Page 5 of 17 c. and not be in default of the provisions of the Parking Garages Operating Agreement, including payment of the Annual Maintenance Fee. (b) Partnership agrees to render, or cause to be rendered, the Property to the Tarrant County Appraisal District and remain current on all ad valorem taxes assessed by all governmental entities for the Grand Avenue Property and Grand Avenue Property Improvements for the term of this Agreement. (c) Partnership agrees that if Tarrant Appraisal District does not assess a value of at least $74,100,000 for the Grand Avenue Property Improvements on or before July 25, 2008, said date being subject to extension for a delay in receipt of the certified assessment from Tarrant County Appraisal District for reasons beyond Partnership's control, City shall have no further obligation to Partnership hereunder. (d) The Partnership agrees that this Agreement shall terminate and be null and void and City shall have no obligation to Partnership if: (1) beginning in January 2009, ifthe assessed value of the Grand Avenue Property Improvements is less than $74,100,000 for any three consecutive years of the Term; or (2) there is a Shortfall Amount for 12 consecutive Subject Quarters, notwithstanding the Partnership's payment to the City an amount equal to any Shortfall Amounts resulting from delinquent taxes owed the City as provided in Section 5 (i) hereof. 5. Program Pavments. (a) The first Subject Quarter of this Agreement will commence November 1 after the Commencement Date. As soon as practical after the end of each Subject Quarter following the Commencement Date, the City shall obtain, from the State of Texas, the Sales Tax Revenues for the previous Subject Quarter pursuant to the information received from the Texas Comptroller, or if necessary, Waivers described in Section 5(d) hereof. (b) Provided that Partnership is in compliance with its obligations hereunder, on or before 90 days after the end of the first Subject Quarter following the Initial Payment Calculation Date, and thereafter, on or before the first business day 90 days after the end of each Subject Quarter of the Term, the City shall pay Partnership a Program Payment, which shall be calculated as eighty percent (80%) of the Sales Tax Revenues received the previous Subject Quarter less the Shortfall Amount, if any. The initial Program Payment shall be an amount equal to eighty percent of the Sales Tax Revenues received since the Commencement Date, less the Shortfall Amount, if any. Provided, however, in the event that City does not receive from the Texas Comptroller the Sales Tax Revenues collected by a Retailer, the City shall not include the amount of the Sales Tax collected by such Retailer in the total Sales Tax Revenues upon which the Program Payment is calculated. W:\Southlake\Agreements\EDC Agreements\SL TS .380.030205. Final. wpd Page 6 of 17 (c) unless: The City shall not be obligated to make a Program Payment to Partnership (1) the Partnership is in compliance with the conditions of this Agreement; (2) the Partnership is in compliance with the conditions of the Development Agreement; (3) the Partnership is in compliance with the conditions of the Parking Garages Operating Agreement; (4) a Declaration of Covenants, Restrictions and Easements for the Grand Avenue Property relating to parking in the Garages in a form satisfactory to the City has been recorded; and (5) the City has received the Quarterly Sales Tax Report for the Premises; (6) subject to subsection (d) below, the Tarrant Appraisal District assesses a value for the Grand Avenue Property Improvements of at least $74,100,000 for 2008 and each year thereafter; and (7) the City's receipt of verification that the hotel constructed on the Grand Avenue property is not delinquent in the payment of any ad valorem, sales tax or hotel tax due any governmental entity, provided however, that the hotel shall have the right to exercise administrative appeals. (8) Partnership's, and Partnership's successors, assigns, and lessees, acceptance of the values for the Grand Avenue Property and Grand Avenue Property Improvements assessed by the Tarrant Appraisal District. (d) Notwithstanding the City's obligation in Subsection (b), the City shall deduct from any Program Payments otherwise due to the Partnership an amount equal to the Shortfall Amount or any offset amount pursuant to Section 17 hereof. (e) If there is a Shortfall Amount, the City shall retain the Sales Tax Revenues that would otherwise be due Partnership until such time as the Sales Tax Revenues shall equal (1) the debt service payment for Public Improvement Debt for that year and (2) any Shortfall Amount from hotel occupancy taxes owed the City is satisfied. (f) Partnership shall not be entitled to "recoup" any amounts withheld from Program Payments pursuant to this subsection. In the event there is a Shortfall Amount which reduces the amount of any Program Payment hereunder, the parties agree that City shall not include the Shortfall Amount in any future Program payments. By way of example, if 80% of the Sales Tax Revenues equals $100,000, and there is a Shortfall Amount of W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 7 of 17 $50,000, the Partnership shall receive a Program Payment of $50,000. If in the next quarter, 80% of the Sales Tax Revenues equals $100,000, and Partnership is entitled to receive a Program Payment, the Program Payment shall be $80,000. (g) City may adjust payments due hereunder for errors caused by over and under reporting and refunds of sales tax. (h) In the event that the City is unable to obtain sales tax revenues for a Retailer within the Premises, Partnership may obtain a Waiver of Sales Tax Confidentiality in the form attached hereto as Exhibit "8" from each Retailer located within the Premises, and submit the same to City. In the event that City does not receive from the Texas Comptroller the Sales Tax information collected by a Retailer, and such waiver is not provided to City, the City shall not include the amount of the Sales Tax collected by such Retailer in the total Sales Tax Revenues upon which the Program Payment is calculated. (i) If a Shortfall Amount resulting from a delinquent ad valorem or hotel occupancy tax exists at the time a Program Payment is due, to the extent permitted by law, Partnership may pay to the City an amount equal to the delinquent tax so as to reduce or eliminate the Shortfall Amount. In the event that the City later receives payment of the delinquent tax, applicable interest, penalty and attorney's fees from the entity responsible for payment of the tax, City shall issue a credit against any future Shortfall Amounts in the amount of the delinquent tax paid, excluding any interest, penalties or attorneys' fees. m All Program Payments to be paid pursuant to this Agreement shall be made from Sales Tax Revenues received from the Grand Avenue Property, to the extent such funds are legally available. Partnership shall have no recourse against any other funds of the City. 6. Verification. If requested by the City, an independent certified public accounting firm acceptable to the City (the "Auditor") shall audit the calculations of Sales Tax Revenues. If the Auditor determines that Sales Tax Revenues have been understated, then the City shall pay to the Partnership the appropriate amount owed pursuant to this Agreement, based on the Auditor's conclusion, and shall pay for the audit. If the Auditor determines that Sales Tax Revenues have been overstated, then the Partnership shall promptly pay to the City such amount owed pursuant to this Agreement and shall pay for the Audit. 7. Default. (a) Should Partnership fail to comply with any term of this Agreement, or have an event of bankruptcy or insolvency, Partnership shall have thirty (30) days after written notice from City to come into compliance. W:\Southlake\Agreements\EDC Agreements\SL TS .380.030205. Final. wpd Page 8 of 17 ~_.,...~_.-...._---. ,-",,,,,-",~......,,~----=_._.,_._._--_._-._,--------,",.''''''''''"' ..,...~,....""""... =-_.." (b) If the noncompliance is not cured within that period, City may terminate this Agreement by written notice, and shall have no further obligation to Partnership; provided however, that the City may, in its total discretion, grant Partnership an extension of 30 days to cure the default if Partnership demonstrates, to the satisfaction of the City Council, that: (1) the default cannot be cured by the payment of monies and (2) cannot be cured within 30 days, and (3) the Partnership is diligently pursuing cure. Partnership may not request more than three 30 day extensions. ( c) The termination of this Agreement shall not affect the transfer of property to City or otherwise relieve Partnership of its obligations hereunder or under the Development Agreement or Parking Agreement. 8. Mutual Assistance. The Partnership hereby consents to and agrees to cooperate with the City to obtain copies of sales/use tax returns from the State which contains information pertinent to the calculation of the Sales Tax Revenues. 9. Representations and Warranties. The Partnership represents and warrants to the City that it has the requisite authority to enter into this Agreement. 10. Section or Other Headings. Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 11 . Entire Agreement. This Agreement, together with the Parking Garage Property Operating Agreement and the Development Agreement, contain the entire agreement between the parties with respect to the transactions contemplated herein. 12. Amendment. This Agreement may only be amended, altered, or revoked by written instrument signed by the Partnership and the City. 13. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the parties, their respective successors and assigns. City agrees that Partnership may, upon written notice to the City, assign its rights to receive Program Payments under this Agreement to any third party. The Partnership may not assign other rights and obligations hereunder without the prior written approval of the City, which shall be at the discretion of the City. Any W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 9 of 17 _4'._._ '_'__'~_~__~'___"_'_"'_'_~~_~"_"_~.="_"""~''''''__'_-_.._-"._,..--'->~'-- assignment shall be contingent upon the assignee's agreement to comply with the provisions of this Agreement and the Development Agreement. The City agrees to execute such documentation as reasonably necessary to evidence the consent of the City to such assignment in such form as is acceptable to the City or, at the request of a third-party lender, to enter into a tri-party agreement among the City, such third-party lender and Partnership, evidencing their agreement with respect to their respective rights and obligations under this Agreement. Any such agreement shall not become effective unless the City has received reimbursement for any legal or other professional fees incurred in the review and execution of the agreement. 14. Notice. Any notice and/or statement required and permitted to be delivered shall be deemed delivered by depositing same in the United States Mail, certified with return receipt requested, postage prepaid, addressed to the appropriate party at the following addresses, or at such other addresses provided by the parties in writing: Partnership: SL TS Grand Avenue, L.P. 1256 Main Street, Suite 240 Southlake, Texas 76092 Attn: Brian R. Stebbins City: City of South lake Attn: City Manager 1400 Main Street Southlake, Texas 76092 A party may change its address to which notices or demands may be given, by written notice to the other party. 15. Interpretation. Regardless of the actual drafter of this Agreement, this Agreement shall, in the event of any dispute over its meaning or application, be interpreted fairly and reasonably, and neither more strongly for or against any party. 16. Aoplicable Law. This Agreement is made and shall be construed and interpreted under the laws of the State of Texas and venue shall lie in Tarrant County, Texas. 17. Right to Offset. City may, at its option, offset any amounts due and payable to Partnership under this Agreement against any debt (including taxes) lawfully due to City from Partnership, regardless of whether the amount due arises pursuant to the terms of this Agreement or W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 10 of 17 ~_ ,.~~..__._.,c_.___,.._'~"'_~~ ~_..'.""",,_,"--"-'.'," otherwise and regardless of whether or not the debt due to City has been reduced to judgment by a court. 18. Indemnification. (a) PARTNERSHIP EXPRESSLY AGREES TO FULLY AND COMPLETELY DEFEND, INDEMNIFY, AND HOLD HARMLESS THE CITY, AND ITS OFFICERS, AND EMPLOYEES, AGAINST ANY AND ALL CLAIMS, LAWSUITS, LIABILITIES, JUDGMENTS, COSTS, AND EXPENSES FOR PERSONAL INJURY (INCLUDING DEATH), PROPERTY DAMAGE OR OTHER HARM, DAMAGES OR LIABILITY FOR WHICH RECOVERY OF DAMAGES IS SOUGHT, SUFFERED BY ANY PERSON OR PERSONS, THAT MAY ARISE OUT OF OR BE OCCASIONED BY ANY NEGLIGENT, GROSSLY NEGLIGENT, WRONGFUL, OR STRICTLY LIABLE ACT OR OMISSION OF THE PARTNERSHIP OR ITS AGENTS, EMPLOYEES, OR CONTRACTORS, ARISING OUT IN THE PERFORMANCE OF THIS CONTRACT, REGARDLESS OF WHETHER OR NOT THE NEGLIGENCE, GROSS NEGLIGENCE, WRONGFUL ACT, OR FAULT OF THE CITY OR ITS OFFICERS, AGENTS, OR EMPLOYEES, CONTRIBUTES IN ANY WAY TO THE DAMAGE, INJURY, OR OTHER HARM. THE REQUIREMENT OF THE PARTNERSHIP TO DEFEND THE CITY ALSO UNCONDITIONALLY APPLIES REGARDLESS OF WHETHER OR NOT THE NEGLIGENCE, GROSS NEGLIGENCE, OR FAULT OF THE CITY OR ITS OFFICERS, AGENTS, OR EMPLOYEES CONTRIBUTES IN ANYWAY TO THE DAMAGE, INJURY, OR OTHER HARM. Nothing in this paragraph may be construed as waiving any immunity available to the City under state law. This provision is solely for the benefit of the Partnership and the City and is not intended to create or grant any rights, contractual or otherwise, in or to any other person. (b) It is agreed by the parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the parties. The City, its elected officials, directors, employees and agents do not assume any responsibility to any third party in connection with the Partnership's construction or operation of the improvements constructed on the Grand Avenue Property. (c) City may withhold any payment to Partnership if partnership has entered into a tax abatement agreement with Carroll Independent School District or if the District approves an economic development incentive, whether monetary or nonmonetary, or in the form of a credit, for Partnership or any Affiliated Entity, as that term is defined in the Development Agreement. After the City Manager reviews the specific incentives authorized by the District, the City shall determine the dollar value of the incentive and shall deduct the value from all Program Payments due Partnership. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 11 of 17 "."..",.-._--,'~.""-^'-~'~"'--'" ,_-";-","~,,,_-_,,__,_--~~.~,_'""'-' .",_-,-,_"""."",-;~-~,~,,,_-'-'--''';'--''''----''''---"' ~'O~ Lori Farwell, City Secretarv "u."" ~.(" '" ~"" \,) THL~ ~"" ...,...,!( ~~......~..t\. "" ~ . . ~ , .. 0 .. e. ... , ~ G~ So " -:. ::)..: * ~((\: - ..... . . - ; 0\ i~? SL TS GRAND AVENUE, L.P., \. s'.. l j A TEXAS LIMITED PARTNERSHIP ,. 5. .. "bo """'... O.o..e.e. ...,'" ~, ,'\ ""1 **ir I"~"~ 8"s...."." Attest: THE CITY OF SOUTHLAKE By: ~~ - Andy Wambsganss, Mayor By: SL TS Grand Avenue Genpar, L.L.C., a Texas limited liability company, its general partner By: Cooper & Stebbins, L.P., a Texas limited partnership, its member By: CS Town Centers, LLC, a Texas limited liability company, its general partner By: CS Town Centers, LLC, a Texas limited liability company, its general partner By: $<//~ Brian p( Stebbins, @ Managing Member W:ISouthlakelAgreementslEDC AgreementslSL TS.380.030205.Final.wpd Page 12 of 17 STATE OF TEXAS S S COUNTY OF TARRANT S Before me lori' A . h<ru.:><2 {( on this day personally appeared Andy Wambsganss, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office this ')q day of jV'krc1- ,A.D. ~ (SEAL) ~~\\\\l1I"""", ~,\\\ Ii- F. ""'1. ~"~ ...:.....:<I~d~ ..t~~.:f>*~~A ~.~ ,"t'.<,::~ ~ ! \~a ;: :~ .i :: = *:;..\. ~ :*:: ~ \.,>- '~; i ~ ... ..~O,~-.~ ~ ~ .~' ~ ~ '.. .. s " y'. .' '- S" ~ '0. .......... t'\.YJ ~ '1""', "27 _ 20'-l\,,\~ 1111 II 111 \Il \I \I" otu.'O-~ Notary Public in and for the State of Texas My Commission Expires: 10 I ;). 7 / DS- I I Type or Print Notary's Name: lor.' A. ~ru:>~ I ( STATE OF TEXAS 9 9 COUNTY OF TARRANT S Before me 1ii2D. A. Dl1.roto on this day personally appeared Brian R. Stebbins, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in his capacity as managing member of CS Town Centers, LLC, a Texas limited liability company, the general partner of Cooper & Stebbins, L.P., a Texas limited partnership, the memberofSL TS Grand Avenue Genpar, L.L.C., a Texas limited liability company, the general partner of SL TS Grand Avenue, L. P., a Texas limited partnersh i p, on behalf of such limited liability companies and limited partnerships. Given under my hand and seal of office this 18 rh day of ~,A.D. (~iYD \\\\\II1t1 "",", (SEAL) ~,\\\';., fl.. A. 8d'I,,~ ~,\~~.:........'TO ~ t ....~*~loRy ~;.~ ~ l ~'.. ~ : : ~ E =.: ~ : = = : y .,. = ~~^ ....::; %,q;.... -~OF~ ......! '" 'l. ..~-r ~ "r'_ ~ ~ '0; ~.:-:".1"IRE5 "t\."U So' ~ rhL:..........";..(\.'V ~ '1'1', <1:.:,0 08 ,," ~" "III" ,,\\\" IIIl/W"'I"'\\ lJJJa ;J lhiuJiAJJ Notary Public in and for the State of Texas My Commission Expires: ID'~'()u' Type or Print Notary's Name: 10M A. 'ibLrots W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 13 of 17 EXHIBIT "A" DESCRIPTION OF PROPERTY BOUNDARY SURVEY W:ISouthlake\AgreementsIEDC AgreementslSL TS.380.030205.Final.wpd Page 14 of 17 - .~~.-~-- -...,~~*.._.,~."~ ,~--~<",". --"---'~'--~ .~-~~.---...----.. \lIIIn'~.""""l'~ Na-ItI(UoI) ft4 TU_"I~) 1'Ol. --- .1 _""'11II--'''" s~aU1:ieod~Lmg cI 3nN3AV 1101:I1:IV::> H.Ll:ION (]\/\f tu J.VMIIDlH llV.LS OJS -d" 'SN1883J.S 't 1:13dOOO Tun.O-.ot'OE :_poifOJ.o:j ~C1..uat8-tQ1&K)-'<<ltt=-1U 'ai"O:O:I~ Ol)I.llfie__J(l l:~'TO-tlX'tK" 'ON ~.l:I ;o-O,-t =-TO(J .001-.1 =-~ t;; N ~...... ~ S~X31 ',l"LNnOJ IN'9'<I<I'9'l '3>fVlHlnOS .olD AlIJ ,ev 'ON 1::1'9'OllS8'9' ',l,3I\<lns SO'9'3 O<l~H::1I<1 3Hl NI 031 'o'nllS ON'9'l .010 lO'o'Oll 3<1::1'0' OS\:'~;. 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" ~-: · '~i~ ~, ~! ih a ~~ ~.~ h -~ -!~ .- ~! ~~~ ." &1 ~"" ~:; ;. ~~~ I~ ~~ I~i ~~ ~! ~6: E~ ;~ ;~~ 8~ ~~ 8~S h g~ ~,,~ ;i im =is ~. ~. ~." g~ E. E:i~ !~ h !3u~ iN: '" 0 ...-". .....__~_~.......""'"..__........._."'''"__._.______~.O~_H..._~......_.._________~.".,,_._.,.___~ EXHIBIT "B" WAIVER FORM W :\SouthlakelAgreements\EDC Agreements\SL TS.380. 030205. Final. wpd ^,-^" <--,<-", .-....--. ..._-~..#_~.,'-_.~.<._._,.....---'--~-_.,.._..~......._~_._._,...._----~,...."'-,.., Page 15 of 17 EXHIBIT "B" VJAIVER OF SALES TAX CONFIDENTIALITY Date I authorize the Comptroller of Public Accounts to release sales tax information pertaining to the taxpayer indicated below to I and the City of Southlake, Texas. I understand that this waiver applies only to our retail store located in in Southlake, Texas. Please print or type the following information as shown on your Texas Sales and Use Tax Permit: Name of Taxpayer Listed on Texas Sales Tax Permit Name Under Which Taxpayer is Doing Business (d/b/a or Outlet Name) Taxpayer Mailing Address Physical Location of Business Permitted for Sales Tax in Southlake, Texas - Texas Taxpayer ID Number Tax Outlet Number (As Shown on Texas Sales Tax Permit) Authorized Signature* Print Name of Authorized Signature Position of Authorized Signature Phone Number of Authorized Signature *The authorized signature must be an owner, officer, director, partner or agent authorized to sign a Texas Sales T ax Return. If you have any questions concerning this waiver of confidentiality, please contact Texas Comptroller of Public Accounts at 1-800-531-5441, Ext. 5-0411. EXHIBIT Ole" DEVELOPMENT AGREEMENT W:\Southlake\Agreements\EDC Agreements\SL TS .380 .030205. Final. wpd Page 16 of 17 ..-.,.,..n~'" _.~C.._~...... ~___"_~._~'''''_;>_'',"",",,''~~'~'~'-''-''"*-----''''-----~-' .~- ,"''''''--''---'~~ EXHIBIT "0" PARKING GARAGE PROPERTY OPERATING AGREEMENT W:\Southlake\Agreements\EDC Agreements\SL TS.380.030205.Final.wpd Page 17 of 17 _.~.< -, "'-_."'-"'-'---~"-'-""---'-"''''''~-' .-----. --"""-,,,.,-,-,~--"" EXHIBIT "B" PROPERTY UPON WHICH THE GRAND AVENUE PROPERTY IMPROVEMENTS ARE TO BE CONSTRUCTED DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development.030205 .Final. wpd Page 18 of 25 -_.,=~--_.....-_~--._-~"-",,-----------_.....-.-=-. 900f~"':l~'-1 .__"..... 1L%O-ll6lZUI -"lI llto-'IIlWt 1"1 DaQl._1-....a 001 "l~"'" 111 -.. 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"~3~" 4 ~;.~ ~ :;;;;l~ ~~ ~~~ - - ..~ !~". ~~; ~~" E< a- H 2~~ " ~.~ :~ ~;: :~~i E~ w~ ;i~ w a~~ 8~ 8" 'g.~ " 'rr"g.~~g.. Ii Ii h;~ i~ i~ :~~ ,!e j!:U nr~~ z~ zW ~;l!l ,. H H Hg ii i~ Iii! EXHIBIT "C" DESCRIPTION OF PUBLIC IMPROVEMENT PROPERTY AND PARKS AND PARKING GARAGES TO BE CONSTRUCTED ON THE PUBLIC IMPROVEMENT PROPERTY DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 19 of 25 DESCRIPTION OF PUBLIC IMPROVEMENT PROPERTY AND PARKS AND PARKING GARAGES TO BE CONSTRUCTED ON THE PUBLIC IMPROVEMENT PROPERTY Public Rh!ht ofWav: The Grand Avenue District includes 9.294 acres of ROW as nominated on the Concept Plan approved by the City of Southlake as Case No. ZA04-066 on October 5,2005 and as illustrated on the Preliminary Plat approved by the City of Southlake as Case No. ZA04070 on October 5, 2004. Parks: The Plaza Park, consisting of .28 Acres is located on Block 13, Lot 3, SOUTHLAKE TOWN SQUARE - PHASE IV, and being a portion ofland in the Richard Eads Survey, abstract No. 481 per Preliminary Plat approved by the City of Southlake as Case No. ZA04-070 on October 5,2004. The Westerly Park, consisting of 3.2 acres is located on Block 12, Lots 1 and 2, SOUTHLAKE TOWN SQUARE - PHASE IV, and being a portion ofland in the Richard Eads Survey, abstract No. 481 per Preliminary Plat approved by the City of Southlake as Case No. ZA04-070 on October 5,2004. Parkin!! Gara!!es: Parking Garage East is located on Block 4RI, Lot 5, SOUTHLAKE TOWN SQUARE- PHASE IV, and being a portion ofland in the Richard Eads Survey, abstract No. 481 per Preliminary Plat approved by the City of Southlake as Case No. ZA04-070 on October 5, 2004, and a portion of the property described in Exhibit B to this Agreement. Parking Garage West is located on Block 3R2, Lot 7, SOUTHLAKE TOWN SQUARE- PHASE IV, and being a portion ofland in the Richard Eads Survey, abstract No. 481 per Preliminary Plat approved by the City of Southlake as Case No. ZA04-070 on October 5, 2004, and a portion of the property described in Exhibit B to this Agreement. EXHIBIT "0" DESCRIPTION OF PARKING GARAGE WEST DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 20 of 25 EXHIBIT "0" DESCRIPTION OF PARKING GARAGE WEST Location: Block 4R1, Lot 5, SOUTHLAKE TOWN SQUARE - PHASE IV, and being a portion of land in the Richard Eads Survey, Abstract No. 481 per Plat Revision approved by the City of South lake as Case No. ZA04-070 on October 5, 2004, and the land described in Exhibit "A" to the Development Agreement. Spaces: 726 spaces Levels: Grade +3 elevated floors Details: As approved by City of Southlake by SUP Application, Case No. ZA04-069, with final site plan approved by the City Council on October 5, 2004 and elevation approved November 16, 2004. EXHIBIT "E" DESCRIPTION OF PARKING GARAGE EAST DEVELOPMENT AGREEMENT - sL Ts-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 21 of 25 Location: Square footage: Spaces: Levels: Details: EXHIBIT "E" DESCRIPTION OF PARKING GARAGE EAST Block 3R2, Lot 7, SOUTHLAKE TOWN SQUARE - PHASE IV, and being a portion of land in the Richard Eads Survey, Abstract No. 481 per plat Revision approved by the City of South lake as Case No. ZA04-070 on October 5, 2004 and the land described in Exhibit "A" to the Development Agreement. 315,592 877 spaces Grade +3 elevated floors As approved by City of Southlake by SUP Application, Case No. ZA04-069, and in accordance with the final site plan as approved by the City Council on October 5, 2004 and elevation approved November 16, 2004. City: Partnership: EXHIBIT "F" SPECIAL WARRANTY DEED DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\SoulhlakelAgreements\EDC Agreements\GrandA venue Development.030205. Final. wpd Page 22 of 25 SPECIAL WARRANTY DEED Date: ,200_ Grantor: SL TS Grand Avenue, L.P. 1256 Main Street, Suite 240 Southlake, Tarrant County, Texas 76092 Grantee: The City of Southlake, Texas, A municipal corporation 1400 Main Street Southlake, Tarrant County, Texas 76028 Consideration: Ten dollars and no/100 and other valuable consideration Property (including any improvements): Being Block 4R1, Lot 5, and Block 3R2, Lot 7, Southlake Town Square - Phase IV, an addition to the City constituting the Plat Revision approved by the City of Southlake for Case No. ZA04-070, on October 5, 2004 [Note: description to be conformed at time of conveyance if necessary] Reservations from and Exceptions to Conveyance and Warranty: NONE Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty, conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and to hold it to Grantee, Grantee's heirs, executors, administrators, and to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, executors, administrators, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the reservations from the exception to conveyance and warranty, when the claim is by, through or under Grantor, but not otherwise. When the context requires, singular nouns and pronouns include the plural. W:\Southlake\Deeds\SWD.SL TS.030205.wpd Page 1 ---_.._.._..."-,._--...~.._.._---_..._'~_._..._--_...~-.'"^,,,,-,-"-~_.~----,,"..,- GRANTOR: SL TS Grand Avenue, L.P. STATE OF TEXAS S S COUNTY OF TARRANT S BEFORE ME, the undersigned authority, on this day personally appeared , known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that he is the , and that he is authorized to execute the foregoing instrument as the act of such of such Partnership for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ,200_, day of Notary Public in and for the State of Texas Type or Print Notary's Name My Commission Expires: AFTER RECORDING RETURN TO: Ms, Lori Farwell City Secretary City of Southlake 1400 Main Street, Suite 270 Southlake, Texas 76092 W :\Southlake\Deeds\SWD. SLTS. 030205. wpd Page 2 _........ ._._,_______,___".-~.,""."'._.n."_...'"..~'"___""'""";........'......-",,,.-,,..",--",,_.. EXHIBIT "G" GENERAL WARRANTY DEED FOR PARKS DEVELOPMENT AGREEMENT - sL Ts-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 23 of 25 ~"_,,,'_.",_'_ ,__,~.. _~.o,."-~_~,.__,_~".~_,_......-_...__""",_.".~_,,.~____<___p.,_.____ GENERAL WARRANTY DEED FOR PARKS Date: ,200_ Grantor: SL TS Grand Avenue, L.P. 1256 Main Street, Suite 240 South lake, Tarrant County, Texas 76092 Grantee: The City of Southlake, Texas, A municipal corporation 1400 Main Street Southlake, Tarrant County, Texas 76028 Consideration: Ten dollars and no/100 and other valuable consideration Property (including any improvements): Being Block 13, Lot 3, and Block 12, Lots 1 and 2, Southlake Town Square -Phase IV, an addition to the City, pursuant to the Plat Revision approved by the City of Southlake for Case No. ZA04-070, on October 5,2004 [NOTE: Description to be any owned at time of conveyance, if necessary] Reservations from and Exceptions to Conveyance and Warranty: NONE Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty, conveys to Grantee the Property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and to hold it to Grantee, Grantee's heirs, executors, administrators, and to warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, executors, administrators, successors, and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the reservations from the exception to conveyance and warranty, when the claim is by, through or under Grantor, but not otherwise. When the context requires, singular nouns and pronouns include the plural. W:\Southlake\Deeds\GWDParks.SL TS..0301 05.wpd Page 1 GRANTOR: SL TS Grand Avenue, L.P. STATE OF TEXAS ~ ~ COUNTY OF TARRANT ~ BEFORE ME, the undersigned authority, on this day personally appeared , known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that he is the , and that he is authorized to execute the foregoing instrument as the act of such of such Partnership for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ,200_ day of Notary Public in and for the State of Texas Type or Print Notary's Name My Commission Expires: AFTER RECORDING RETURN TO: Ms. Lori Farwell City Secretary City of Southlake 1400 Main Street, Suite 270 South lake, Texas 76092 W:\Southlake\Deeds\GWDParks.SL TS..030105.wpd Page 2 EXHIBIT "H" GENERAL WARRANTY DEED FOR STREETS DEVELOPMENT AGREEMENT - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandAvenue Development. 030205. Final. wpd Page 24 of 25 .. _'>A.'.....___.~... ._......."'..-.~~...___._""""'__""..,,,....,,_~._,_,.._~______._,'~"'..._,.,"'........--." GENERAL WARRANTY DEED FOR STREETS Date: ,200_ Grantor: SL T8 Grand Avenue, L.P. Grantors' Mailing Address (including county): Attn: Frank Bliss 1256 Main Street, Suite 240 Southlake, Tarrant County, TX 76092 Grantee: The City of Southlake, Texas Grantee's Mailing Address (including county): 1400 Main Street Southlake, Tarrant County, Texas 76092 Consideration: Ten Dollars ($10.00) and other good and valuable consideration. Property (including any improvements): All of Grantor's interest in the streets, rights of way, and alleys dedicated to the public's use pursuant to the Plat Revision approving - Phase IV of South lake Town Square Addition to the City of South lake, as recorded in Cabinet _' Slide of the Plat Records of Tarrant County, Texas ("Plat"). Exceptions To Conveyance And Warranty: All governmental zoning laws, regulations and ordinances affecting the Property, an undivided one-fourth interest in all oil, gas and other minerals as reserved in deed recorded in Volume 2091, Page 608, Deed Records of Tarrant County, and conditions of the Plat but only to the extent such items are validly existing and affect the Property. Grantors, for the Consideration and subject to the Exceptions to Conveyance and Warranty, GRANT, SELL, and CONVEY to Grantee the Property, together with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee and Grantee's successors and assigns forever. Grantors bind Grantors and their respective successors and assigns to warrant and forever defend all and singular the Property to Grantee and Grantee's successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the Exceptions to Conveyance and Warranty. GENERAL WARRANTY DEED FOR STREETS - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Deeds. 030205. wpd PAGE 1 Grantors, their successors and assigns, to the extent each shall own the property abutting the Property conveyed by this deed, hereby reserve a right of first refusal with respect to the Property, as described in this paragraph. In the event that Grantee determines to sell all or a portion of the Property to a non-governmental entity, the owners of the land abutting the Property (the "Abutting Owners") shall have the exclusive right of first refusal to purchase the Property, at fair market value as determined by an appraisal of the Property to be sold obtained by the Grantee. For purposes of this right of first refusal, the term "Property" is defined as that portion of the Property conveyed to Grantee which Grantee intends to offer for sale. In such event, Grantee agrees to notify the owners which abut the Property intended to be sold of the fair market value of the Property to be sold and the terms and conditions of the sale (the "Notice of Offer"). Grantee shall notify the Abutting Owners at the addresses as shown on the Tarrant Appraisal District rolls. The Abutting Owners shall have the exclusive right, at their option, for a period of thirty (30) days (the "Exercise Period") from its receipt of the Notice of Offer to notify Grantee in writing that the Abutting Owners shall purchase the Property intended to be sold upon the terms and conditions and at the price specified in the Notice of Offer. If the Abutting Owners do not give notice to Grantee of their exercise of its rights hereunder within the Exercise Period, the Abutting Owners' right of first refusal shall automatically terminate. If the Abutting Owners exercise such right to purchase by giving written notice to Grantee at any time within the Exercise Period, the closing of the resulting sale and purchase of the Property shall take place upon the terms and conditions of the Notice of Offer. This right of first refusal does not apply, however, to any sale of the Property to a governmental entity . The foregoing right of first refusal runs with the land making up the Property, is binding on Grantee and Grantee's successors and assigns forever, and inures to the benefit of Grantors, Grantee and the Abutting Owners. When the context requires singular nouns and pronouns include the plural. GRANTOR: SL TS Grand Avenue, L.P. GENERAL WARRANTY DEED FOR STREETS - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Deeds. 030205. wpd PAGE 2 STATE OF TEXAS S S COUNTY OF TARRANT S Before me on this day personally appeared Brian R. Stebbins, known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that he executed the same in his capacity as managing memberofCS Town Centers, LLC, a Texas limited liability company, the general partner of Cooper & Stebbins, L.P., a Texas limited partnership, the member of SL TS Grand Avenue Genpar, L.L.C., a Texas limited liability company, the general partner of SL TS Grand Avenue, L.P., a Texas limited partnership, on behalf of such limited liability companies and limited partnerships. Given under my hand and seal of office this day of ,A.D. (SEAL) Notary Public in and for the State of Texas My Commission Expires: Type or Print Notary's Name: GENERAL WARRANTY DEED FOR STREETS - SL TS-GRAND AVENUE, L.P.; CITY OF SOUTHLAKE, TEXAS W:\Southlake\Deeds .030205. wpd PAGE 3 EXHIBIT "I" PARKING GARAGE PROPERTY OPERATING AGREEMENT DEVELOPMENT AGREEMENT - sL Ts-GRAND AVENUE, L.P.; CITY OF SOUTH LAKE, TEXAS W:\Southlake\Agreements\EDC Agreements\GrandA venue Development.030205. Final. wpd Page 25 of 25 PARKING GARAGE PROPERTY OPERATING AGREEMENT This ~arking Garage Pr<?p~rty O~erating Agreement ("Agreement") is entered into as of the ~ day of r V lo.fcNL , 2005 by and between the City of Southlake, a Texas municipal corporation of Tarrant County and Denton County, Texas (hereinafter called "City"), Town Square Ventures, L. P., an Illinois limited partnership ("TSV"); Town Square Ventures II, L. P., a Texas limited partnership ("TSVII"; TSV and TSVII collectively referred to herein as the "Phase I Owner") and SL TS Grand Avenue, L.P., a Texas limited partnership (hereinafter called "Phase IV Owner"), (the Phase I Owner and the Phase IV Owner are hereinafter collectively referred to as the "Project Owner") and Southlake Town Square Association, a non-profit corporation of Texas (hereinafter called "Association"). RECITALS A. City and the County of Tarrant, Texas have an irrevocable license (the "Existing License") in certain real property and parking improvements located on Block 4R, Lot 3, Block 2R1, Lot4, and Block 3R1, Lot 2 in Southlake Town Square, South lake, Texas, which currently serves the employees of the City and the County and visitors to South lake Town Hall. B. Project Owner collectively owns the land consisting of Phase I (being that certain real property described on Exhibit A-1, attached hereto, and herein so called) and Phase IV (being that certain real property described on Exhibit A-2 attached hereto and herein so called) of Southlake Town Square, a development in the Downtown District, Southlake Town Square Addition, Southlake, Texas. Phase I and Phase IV constitute the "Project" and are depicted and shown on Exhibit B. C. City has approved the Site Plan for Phase IV of the Project, a copy of which is attached hereto as Exhibit C. City agrees that the Site Plan, as approved, meets the requirements for parking in the City's zoning ordinance. City intends that the parking garages be for the use of the general public and to the extent permitted by law, agrees it will not charge for parking at least until the expiration of the Reinvestment Zone Number One, City of Southlake (the "TIF District"), established by Ordinance No. 682, adopted on September 23, 1997. D. Phase IV Owner and City have entered into a Development Agreement (the "Development Agreement") and an Economic Development Program Agreement related to Phase IV, (the "Economic Development Agreement") for the funding, construction and conveyance of certain community facilities and improvements, including two parking garages to be located on Block 4R1, Lot 5, and Block 3R2, Lot 7 of Phase IV. E. The reimbursement of funds to Phase IV Owner under the Development Agreement for the construction of public improvements within the TIF District constitutes a portion of the consideration for the conveyance of the two parking garages to City in accordance with the terms thereof; the remainder of the consideration for the conveyance W:\Southlake\AgreementsIEDC Agreements\Parking Agrmt. Final. 030205.wpd Page 1 of 22 of the two parking garages to City is to be paid to the Phase IV Owner in accordance with the terms of the Economic Development Agreement. F. As partial consideration for the funds to be paid to Phase IV Owner under the Development Agreement and the Economic Development Agreement, Project Owner and Association have agreed to impose restrictions upon the tenants, successors, and assigns within the Project, and to pay for a proportionate share of the expenses of maintenance for the parking garages, as more fully set forth herein. G. Association is organized to enforce the Declaration of Covenants, Restrictions and Easements on the Town Square Addition, as it exists as of the date of execution of this Agreement. Association is authorized, pursuant to the Declaration, to impose rules and regulations regarding parking and to enforce the regulations. H. Phase I Owner will benefit from the availability of parking resulting from the construction and operation of the Parking Garage West and Parking Garage East. I. Project Owner and City now desire to enter into this Agreement to memorialize their agreement relative to the use of, and payment for the Operating Expenses associated with, the Parking Garages; NOW, THEREFORE, THE PARTIES AGREE AS FOllOWS: 1. RECITALS ADOPTED. The recitals set forth above are hereby incorporated in this Agreement. 2. DEFINITIONS. Agreement Year means each 12 month period during the Term, with the first Agreement Year commencing on the Commencement Date and ending on the day prior to the first annual anniversary thereof. Annual Maintenance Fee means for each applicable Agreement Year, an amount equal to Project Owner's Proportionate Share of the annual Operating Expenses incurred by City with respect to the operation of the Parking Garages for that Agreement year. Commencement Date means the date that the Parking Garage Properties are conveyed to and accepted by City in accordance with the Development Agreement. City means the City of Southlake Texas. County means the County of Tarrant, State of Texas. Declaration of Covenants, Restrictions and Easements or CRE means the Restated and Amended Declaration of Covenants, Restrictions and Easements for Town Square, as recorded in Volume 15097, Page 457 of the Real Property Records of Tarrant County, Texas, as affected by instruments recorded in Volume 15097, Page458, in Volume 16844, Page 91, in Volume 17262, Page 260, and in Volume 17263, Page 3 of the Real Property Records of Tarrant County, Texas. W:\SouthlakelAgreements\EDC Agreements\Parking Agrmt. Final. 030205. wpd Page 2 of 22 Development Agreement means, as defined in Recital D, the Development Agreement, between the City and Phase IV Owner executed of even date herewith. Economic Development Agreement means, as defined in Recital D, the Economic Development Program Agreement, between the City and the Phase IV Owner executed of even date herewith. Operating Expenses means certain expenses actually paid by City pertaining to the City's operation and maintenance of the Parking Garage Properties, and shall include, but not be limited to, the following expenses (including the actual cost of labor associated herewith): repairs and maintenance, cleaning, landscaping, lighting, irrigation and utility costs, property insurance and general liability insurance, workers' compensation insurance and other reasonable and customary expenses to maintain and operate the Parking Garage Properties, but shall not include the cost of taxes. Parking Garage East means the parking garage located on Block 4R1, Lot 5 of Phase IV of the South lake Town Square Addition to the City of South lake, Texas. Parking Garage West means the parking garage located on Block 3R2, Lot 7 of Phase IV of the Southlake Town Square Addition to the City of Southlake, Texas. Parking Garage Properties means, collectively, the Parking Garage West and the Parking Garage East. Proportionate Share means a fraction expressed as a percentage, the numerator of which is the total square footage of all buildings owned by the applicable party within the Phase I and Phase IV Property, and the denominator of which is the total square footage of all buildings within Phases I and IV of the Town Square Addition. It does not include the Parking Garage West and Parking Garage East. 3. TERM. This Agreement shall become effective as of the date of execution by the last party to sign this Agreement and shall continue until terminated as provided herein (the "Term"). 4. CONSIDERATION. As a portion of the consideration for the conveyance to City of the Parking Garage West and Parking Garage East pursuant to the Development Agreement, the City agrees to the terms of the Development Agreement and Economic Development Agreement. As a portion of the consideration for such payment and reimbursement by City and to facilitate and promote economic development, Project Owner agrees to (i) include the applicable restrictions on parking described in Section 5.A.2 of this Agreement in all of its leases, contracts of sale and deeds conveying any interest in the Phase I and Phase IV Property, and (ii) pay for the Annual Maintenance Fee as provided below and (iii) amend the CRE to impose the restrictions in Section 5.A.2 on the Phase I Property and (iv) adopt and record these restrictions on the Phase IV Property. W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. Final. 030205. wpd Page 3 of 22 5. PROJECT OWNER'S COVENANTS. A. In consideration of City's agreement to reimburse Project Owner for a portion of the cost to construct Parking Garage West and Parking Garage East pursuant to the Development Agreement and Economic Development Agreement, Project Owner agrees to: 1 . pay the Annual Maintenance Fee within 45 days after receipt from the City of the invoice for such Fee; and 2. include provisions in all of its leases executed after November 16, 2004, and contracts of sale of any property located within any phase of the Town Square Addition to the City that the tenants, owners and subsequent owners shall: a. restrict their employees from parking in parking spaces located on the first and second floors of either Garage; and b. comply with the City's rules and regulations governing the Parking Garages, as amended from time to time; 3. not impose a fee for parking in the Parking Garages; 4. not guarantee or reserve parking spaces in the Parking Garages; and 5. amend the CRE to include the provisions of this Section. B. In consideration of the City's approval of the Site Plan, Association agrees to: 1. adopt the provisions of Section 5.A.2 therein as rules and regulations pursuant to Section 8.2 of the CRE; and 2. collect the Annual Maintenance Fee from the owners of property within Phase I and remit the same to the City. C. Phase I Owner agrees to make available 221 parking spaces for the use of the City and County during construction of the Parking Garages in accordance with the terms of the Existing License. Upon the Commencement Date, City agrees that the Existing Irrevocable Parking License heretofore granted to City shall terminate. City agrees to use all reasonable efforts to obtain County's consent to the termination of the said License. 6. CITY'S RIGHTS AND COVENANTS. The City shall be and is entitled to all rights and privileges of ownership of the Parking Garages except to the extent otherwise provided in this Agreement and to shall be entitled to take all actions necessary or desirable to its rights and obligations as owner and operator of the Parking Garage Properties. The City agrees: W:\Southlake\Agreements\EDC Agreements\Parking Agrmt.FinaI.030205. wpd Page 4 of 22 A. that City's invoice delivered to Project Ownerforthe Annual Maintenance Fee shall include reasonably sufficient detail regarding the amount and calculation of Operating Expenses (it being agreed that the standard for detail shall be the form of the invoice as delivered to City under the Existing License); B. that City shall not use the Parking Garage Properties for a "bus barn" or vehicle maintenance area; C. to restrict its employees, for the term of the Reinvestment Zone, from parking in parking spaces located on the first and second floors of either the Parking Garage West or Parking Garage East; D. that the provisions of this Agreement do not alter the City's approval of the Site Plan and that City intends that the parking garages be for the use of the general public; and E. to the extent permitted by law, it will not charge for parking at least until the expiration of the Reinvestment Zone Number One, City of South lake (the "TIF District"), established by Ordinance No. 682, adopted on September 23,1997. 7. INDEMNITY AND INSURANCE. A. TO THE EXTENT PERMITTED BY LAW, ASSOCIATION AND PROJECT OWNER SHALL INDEMNIFY, PROTECT, DEFEND AND HOLD HARMLESS CITY AND ALL OF ITS RESPECTIVE OFFICERS, EMPLOYEES, SERVANTS, AND AGENTS (COLLECTIVELY, "INDEMNITEES") FOR, FROM AND AGAINST ALL LIABILITIES, CLAIMS, FINES, PENALTIES, COSTS, DAMAGES OR DEATH OF OR PERSONAL INJURIES TO PERSONS, DAMAGES TO PROPERTY, LOSSES, LIENS, CAUSES OF ACTION, SUITS, AND JUDGMENTS (INCLUDING COURT COSTS, AND REASONABLE ATTORNEYS' FEES), OF ANY NATURE, KIND OR DESCRIPTION, DIRECTLY OR INDIRECTLY ARISING OUT OF, CAUSED BY, OR RESULTING FROM (IN WHOLE OR PART) ANY ACT, OMISSION, NEGLIGENCE OR WILLFUL MISCONDUCT OF ASSOCIATION AND PROJECT OWNER OR ANY OF ITS EMPLOYEES, OR ANY OF ITS TENANTS OR OWNERS; (3) DAMAGE TO ASSOCIATION AND PROJECT OWNER'S PROPERTY, OR THE PROPERTY OF ANY OF ITS EMPLOYEES, OWNERS, OR TENANTS LOCATED IN OR ABOUT THE PARKING GARAGES (COLLECTIVELY, "LIABILITIES"). B. PROJECT OWNER AND ASSOCIATION AGREE THAT CITY SHALL NOT BE RESPONSIBLE FOR AND ASSOCIATION AND PROJECT OWNER HEREBY WAIVE ALL CLAIMS ARISING OR ALLEGED TO ARISE FROM THEFT OF OR DAMAGE TO ANY VEHICLES OCCUPYING THE PARKING IMPROVEMENTS OR THE CONTENTS OF SUCH VEHICLES. W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. Final. 030205.wpd Page 5 of 22 8. DEFAULT. A. Events of Default. In the event Project Owner shall fail to pay maintenance or sums payable by Project Owner hereunder when due or Project Owner shall fail to comply with or observe any other provision of this Agreement and such failure shall continue for 30 days after written notice to Project Owner; an event of default shall be deemed to have occurred. B. Remedies. Upon the occurrence of any event of default and the expiration of any the notice and cure period, City shall have the option to pursue any remedy at law or in equity without any further notice or demand whatsoever, including termination and the imposition of a lien on the property of the Project Owners or their successors in the amount of any delinquent payment. Moreover, the parties agree that a default in the payment of the Annual Operating Expenses will result the delinquent amount being deducted from the Program Payments otherwise due Phase IV Project Owner under the Economic Development Agreement. All rights and remedies of City herein or existing at law or in equity are cumulative and the exercise of one or more rights or remedies shall not be taken to exclude or waive the right to the exercise of any other. C. Interest Pavable. Any payment due under this Agreement that is not paid within 10 days after the date herein specified to be paid shall bear interest from the date of such payment is due to the date of actual payment at the rate of ten percent (10%) per annum or the highest lawful rate of interest permitted by Texas or federal law, whichever rate of interest is lower; provided however, that not more often than once every five years, the City shall have the right to adjust the interest rate to reflect prevailing market conditions. 9. AMENDMENT. Any agreement hereafter made between City, Association and Project Owner shall be ineffective to modify, release, or otherwise affect this Agreement, in whole or in part, unless such agreement is in writing and signed by all parties. 10. WAIVER. The failure of either party to this Agreement to complain of any action, non-action, or default of the other party shall not constitute a waiver of any such party's rights under this Agreement. Waiver by either party to this Agreement of any right for any default of the other party shall not constitute a waiver of any right for either a prior or subsequent default of the same obligation or for any prior or subsequent default of any other obligation. 11. PARTIES AND SUCCESSORS. Subject to the limitations and condition set forth elsewhere herein, this Agreement shall bind and inure to the benefit of the respective heirs, legal representatives, successors, and assigns of the parties hereto. 12. COVENANTS RUN WITH THE PROPERTY. The provisions, restrictions on parking and covenants regarding payment of the Annual Maintenance Fee set forth in this Agreement are hereby declared covenants running with the Property and are fully binding on the City, the Association and the Project Owner and each subsequent owner. or assignee of all or any portion of the Property and shall be binding on all successors, heirs, and assigns of the Project Owner or Association which acquire any right, title or interest in W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. Final.030205. wpd Page 6 of 22 _~. ....,.~._"..__._",.__.~_____....""""__.,_..______~."~.'""='___..=0'_'-'___ or to any property located within any phase of the Town Square Addition to the City. This Agreement shall be recorded in the Real Property Records of Tarrant County. 13. NOTICE. If intended for City, to: City Manager City of Southlake 1400 Main Street, Suite 460 Southlake, Texas 76092 If intended for Phase I Owner, to: Town Square Ventures, L.P. 1700 Alma Road Piano, Texas 75075 Attn: Matt Tice If intended for Phase IV Owner, to: SL TS Grand Avenue, L.P. 1256 Main Street, Suite 240 Southlake, Texas 76092 Attn: Brian R. Stebbins If intended for Association, to: South lake Town Square Assn. 1256 Main Street, Suite 240 Southlake, Texas 76092 Notices shall be deemed received upon the earlier of (1) actual receipt, (2) if mailed, three days after deposit by certified mail (return receipt requested) in an official depository of the United States Postal Service, (3) if sent by a nationally recognized overnight courier service, the first business day after delivery to such service. 14. GOVERNING LAW. VALIDITY, ENFORCEABILITY, INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS (WITHOUT REGARD TO CONFLICT OF LAW RULES) AND THE LAWS OF THE UNITED STATES APPLICABLE TO TRANSACTIONS IN TEXAS. ALL OBLIGATIONS OF THE PARTIES CREATED HEREUNDER ARE TO BE PERFORMED, AND EXCLUSIVE VENUE SHALL LIE, IN TARRANT COUNTY, TEXAS. 15. MISCELLANEOUS. This Agreement, including all exhibits which may be attached hereto (which exhibits are hereby incorporated herein and shall constitute a portion hereof, contains the entire agreement between Association, Project Owner and City with respect to the subject matter hereof). Further, the provisions of this Agreement shall not be construed against or in favor of a party hereto merely because such party is the "City" or the "Project Owner" hereunder or such party or its counsel is the drafter of this Agreement. 16. TIME OF ESSENCE. Time is of the essence of this Agreement and each and all of its provisions in which performance is a factor. W:ISouthlakelAgreementslEDC Agreements\Parking Agrmt. Final.030205. wpd Page 7 of 22 17. REPRESENTATIONS AND WARRANTIES. A. Project Owner hereby represents and warrants to the City that: 1. Project Owner has full lawful right, power and authority to execute and deliver and perform the terms and obligations of this Agreement and that the execution and delivery of this Agreement has been duly authorized by all necessary action by the Project Owner; 2. this Agreement constitutes the legal, valid and binding obligations of Project Owner and is enforceable in accordance with its terms and provisions; 3. Project Owner is the sole owner of all property within the Project and there are no liens, encumbrances, leases, tenancies, rental agreements or concession agreements in effect regarding the Phase I or Phase IV Property except those listed in Exhibit D; 4. all action necessary to ensure that the lienholders and tenants identified in Exhibit D have consented to the provisions of this Agreement and agreed to be bound by the provisions hereof; and 5. the execution and performance of this Agreement will not violate Section 7.2 of the CRE. B. The Association hereby represents and warrants to the City that: 1. Association has full power and authority to agree to this Agreement and full lawful right, power and authority to execute and deliver and perform the terms and obligations of this Agreement; 2. the execution and delivery ofthis Agreement has been duly authorized by all necessary action by the Association; 3. the Association's execution and performance under this Agreement will not violate the CRE or any other Agreement to which the Association is a party; and 4. Association is empowered and authorized pursuant to Section 8.2 of the CRE to impose the provisions of this Agreement in its rules and regulations for parking. C. The foregoing representations and warranties shall survive the execution of this Agreement and continue throughout the Term. ..........,tot;~;.~.="".. ....." t;:)o ..oo..~~ '",,#. ~ ~.e. -.0 ,# ~ ATTEST i 0/ . ...~~ . :;;...: ..Jb,.. ~~: ~ ~:I-\ ~ Jrnf ..) -(). .". -. .. S By.. ~ .... .... i .,. 0....... ,.:> Lori Farwell, City Secretary ""II". **...,........... "'UUlIl' CITY OF SOUTHLAKE, TEXAS By: *=------ ___ .J Andy Wambsganss, Mayor ~ W:ISouthlake\AgreementsIEDC AgreementslParking Agrmt. Final. 030205. wpd Page 8 of 22 ~ ~ COUNTY OF TARRANT ~ This instrument was acknowledged before me on (Vlta.r-ck ')q ,2005, by Andy Wambsganss, the Mayor of the Cit;s:a:Outhlake, Texas, a Texas municipality on behalf of sa~id munici~a(Jlity. ~ ~\\\\"III"""", ~,,~:\ ^ ~ II,~ A~O~.....:.....:-q.t\"~ Notary Public in and for the State of Texas ...~ .' "DV~' ~rL..'~ I" .~iI(", .....~~ II*\~~ ... . \ - ::. = , .r= _ *' ~ l = - . ~ -. - i \ ~A. ~'fi J., !. \ 'fFOF I It: ~ -.. A.:~'-:" ~. if ~ ;. .~,,-~." # ~ 0. ............~~ ~ ~',11...<7 -20~ ,,\'~ 111I1ll" "!I 1\\\\\ STATE OF TEXAS My Commission Expires: ,O~O~ W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. Final.030205. wpd Page 9 of 22 TOWN SQUARE VENTURES, L.P., an Illinois limited partnership, Phase I Owner By: WESTERN TOWN SQUARE VENTURES I GP, L.L.C., a Delaware limited liability company, its general partner By: INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, its sole member By: Name: Its: ~'\'\o-.v ~ Date of Signature: STATE OF ILLINOIS COUNTY OF DUP AGE This instrument was acknowledged before me on MC\;vc.h 21 , 2005, by De b (t'\.,..- A .P6\ Inuf , the Ass1-Secn.fMy ofInland Western Retail Real Estate Trust, Inc., sole member of Western Town Square Ventures I GP, L.L.c., general partner of Town Square Ventures, L.P., on behalf of said corporation, limited liability companies and limited partnerships. (Seal) ;(/~ d for the State of My Commission Expires: OFFICIAL SEAl KIMBERlY A M/TCHaL NOTARY PUBLIC - STATE OF ILLINOIS MY COMMISSION EXPIRES: 03-12.07 p~ [0 tEJ..'- ,_.~, ....".".~."..____."...<_.O'__.___._...,'"___,.~_'"__"____~.......-~-_.--'- . SL TS GRAND AVENUE, L.P., a Texas limited partnership, Phase I Owner By: SL TS Grand Avenue Genpar, L.L.C., a Texas limited liability company, General Partner By: Cooper & Stebbins, L.P., a Texas limited partnership, its member By: CS Town Centers, LLC, a Texas limited liability company, its general partner By: ~' Brian R. Ste ins, Managing Member @ STATE OF TEXAS ~ ~ COUNTY OF TARRANT ~ This instrument was acknowledged before me on flbrc:JJ rx ' 2005, by Brian R. Stebbins, the managing member of CS Town Centers, LLC, the general partner of Cooper & Stebbins, L.P., the member of SL TS Grand Avenue Genpar, L.L.C., the general partwmflf,~L TS Grand Avenue, L.P., on behalf of said limited liability companies and limited partnerships. "\\\\\\~ A.RA ''::'''II~ ~ ........ ". <9. ~ (Seal) j: ./'~"~T..wj:'",\~ Um:; [) IbwJk:Y ; 0 f ~ !+:'~ ~g Notary Public in and for the State of Texas My Commission Expires: :: (') : -:i 0: = - .-\ . ,.' . - /IJ-J-D/o ~o...~O..A:~..fb i ~ ~ ~~:~~ TE~ .... ~ SOUTH LAKE TOWN ~~"l.'~$Sr>tIATION, A TEXAS NON PROFIT CORltORA'fION By: ..zK'f(~ ~ Brian R. Ste~s, President ~ STATE OF TEXAS ~ ~ COUNTY OF TARRANT ~ This instrument was acknowledged before me on -IJ1J.rr 11 Jg , 2005, by Brian R. Stebbins, the President of Southlake Town Square ~~tjl1itMiQJ} Inc., a Texas non-profit corporation on behalf of said corporation. ,\,,~ "'RA A /,IIIII/. >::-' ,r ......... 0'-9. ~ (Seal) f ......~TM.;.......?d% "-.iua /J /In;.nfu) _ff . ..f ~ *'\.~~_ Notary Public in and for the State of Texas My Coml1)ission Expires: _ . ~ . _ lo~~.fL =0: 'i- flI: = %<):....~'F TE"f."'./ $ -:-0" ...:.:::- ~ ~~'\ .... ~S .... ~ ~Q'I:J:>.......... ~lQ >::-' '///III/f 08, 2~ \""", 1(/fllH II 111\\\\\ W:\Southlake\Agreements\EDC Agreements\Parking Agrmt.FinaI.030205.wpd Page 11 of 22 --=' ..",......-~---------_.~_._.".,._-,.,-----...--~"=-'=---....."'..----'_. TOWN SQUARE VENTURES II, L.P., a Texas limited partnership By: Town Square Ventures II GP, L.L.c., a Texas limited liability company, its general partner By: C&S Southlake Capital Partners I, L.P., a Texas limited partnership its member By: WESTERN TOWN SQUARE VENTURES GP, L.L.c., a Delaware limited liability company, its general partner By: INLAND WESTERN RETAIL REAL ESTATE TRUST, INC., a Maryland corporation, its sole member By: Name: Its: Date of Signature: V\lCi.tCh.;;}\ i ;)0 oS' STATE OF ILLINOIS ) ) COUNTY OF DUP AGE ) This instrument was acknowledged before me on (V\tVYC..tl 21 , 2005, by (kbl'''~ A. P(tl~ , the As~t. <;eCY.{1.ofInland Western Retail Real Estate Trust, Inc., sole member of Western Town Square Ventures GP, L.L.C., gen al partner of C&S Southlake CapItal Partners I, L.P., a Texas limited partnership, member of Town Square Ventures II GP, L.L.c., a Texas limited liability company, general partner of Town Square Ventures II, L.P., on behalf of said corporation, limited liability companies and limited partnerships. (Seal) ~A_~ Notary Pubh and for the State of My Commission Expires: ~ OFFICIAL SEAl KIMBERLY AMITCHaL NOTARY PUBlIC - STATE OF IlUNOIS MY COMMISSION EXPIRES: 03-12'()7 P CAOJe ,;).. oF?-)- ~.,~.._,.,,,_._.. .~-~'_...' ~_...~.__.,_._-----~-_...,~._-" EXHIBIT A-1 LEGAL DESCRIPTION OF PHASE I Lots 3 and 4, Block 1 R; Lots 2 and 4, Block 2R1; and Lots 1 and 2, Block 3R1 r SOUTHLAKE TOWN SQUARE - PHASE I, an Addition to the City of South lake, Tarrant County, Texas, according to plat recorded in Cabinet A, Slide 6888 and 6889, Plat Records of Tarrant County, Texas; Lots 1 and 2, Block 1 R; Lots 1 and 3, Block 2R1 , SOUTH LAKE TOWN SQUARE - PHASE I, an Addition to the City of Southlake, Tarrant County, Texas, according to plat recorded in Cabinet A, Slide 6888 and 6889, Plat Records of Tarrant County, Texas; and Lots 3, 4 and 5, Block 5R; and Lot 1, Block 4R, SOUTH LAKE TOWN SQUARE - PHASE I, an Addition to the City of Southlake, Tarrant County, Texas, according to plat recorded in Cabinet A, Slide 6888 and 6889, Plat Records of Tarrant County, Texas. W:\Southlake\Agreements\EDC Agreements\Parking Agrmt.Final.030205. wpd Page 13 of 22 EXHIBIT A-2 LEGAL DESCRIPTION OF PHASE IV Lots 4,5,6 and 7, Block 3R2; and Lots 4,5,6, and 7, Block 4R1; Blocks 12-14; Block 17; and Block 18, SOUTHLAKE TOWN SQUARE - PHASE IV, constituting the Plat Revision approved by the City of South lake as Case No. ZA04-071 on October 5,2004, described by metes and bounds on the boundary survey of February 10,2005, and prepared by Brury and Partners attached as follows: [Remainder of Page Intentionally Left Blank] W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. 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F _. .rl.a ~~ " .. ~ E i I Iii ~ ';:i '0:1 ... ~f ;i ;1 .1, i m~; ~i ~i U iI. iI. ilit. ilio,E iI. iI. 0- i .~ - ~' .'0 l i ~;..~ a,." e.;;~ ;~ ~~I "r. c,,' .. ..s ;~f. Sm e; g!. ~~5~ I~.. :~ sr- :l'J!~ "'!!lll !!~ ~ilf ifi~ ~i'~ 'l ~.i 'co -~f ~~ ~",! "SE 'E~2 .. oU u.~ n~" ~. ~!8 Elln "i88 ,,~,,:- ~~e~ ~d" Iii ~~e ~H~ ;.,; !o ~~S ~I~~ i~i~ ~~ s;;; ~ I!i.. . !~ iE IE "ft c~ s( .. .~~ . ~. l~i~ .~" ~~n ~H, ~ ~., ~~ ~~! 3nN3AY 1101:111\"0 HLI:ION aNY tll .l."~1H llYJ.S 03S 'd'l 'SNI8831S 'i ~3dOO::> .l.fi"KI-eDtOr :'OH l~Ud llMa"~-1Ott3tLI -a.l'.a;.C8~ OOH >CfI -~(] tle'J(l-~or "1ItoI ._,... 'iO-QI-t :-lOO .OOI"~1 ",r!OS .... ~C\J : <n 0 !' ~o~ ; Ii i ~ ~. ~b: 'ii l Iii . . _ . l<. i~~ /il r' '" hi $ !< ~ ~ ~ " U "li h ~n ~l I;~ ! ; ~ ~ ~ i~1 ;1 ~d~~ er e'~ e. .~. ~ < ~ 0 ~ ..1 ~~.~ u= ...~...t12 ...5: ~lIIJ ~ e ... .. c $loll ...... ~~ * ~w li'gr ~; !;.s , ~ ~ ~ g 2S' ~~!i !~il ;;. S"l "s 100 - " a " 2 ..~ ~' "5 I'; '1 :i~. ii, ~~a s ii ~ ~ :i a'J .! 'w ~!a ,~;W'~ i1i II ~" ~ ,~, ili-JE; U i!i ii, i;i ; i i ~ i d~ i ~ i~ !;! g, 2~1 iio; ~j!i, ! ; i g ii ii_I ~.:~ ~j!i~ :1 ~l'i :"fi Ii~' ~ < . . . <Eli s~ ;i ia" 50 ~:I. r!~ k~! ~ i i E s i;~~ ~~ g~ g~g ~~ 8 U ~iO ~'. l ~ '8 g !, gl=" ~, ~i ~,~ ~i I~.; ~d ;!s I If if If ~I ifl'~ ;i :~ .is 'w ,.~. 'l" 'R~, "f ,u ,~ .fi, ,.!;;~; ~ii' H m~ M iin I~ u ~~ ~f n M~ Ii I: i~n EXHIBIT "B" DEPICTION OF PHASE I AND PHASE IV OF THE PROJECT W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. Final.030205. wpd Page 17 of 22 . _^__~..._.,..~._~'n'_.__~_.., ',~~M"._' ,_ ......'''''..,'___"""'''''''..-......e.._.____.......,,='.....".....'.'...-''.- EXIDBIT B DEPICTION OF PHASE I AND IV OF THE PROJECT - - - - J L JU .<<IIIT.loin t4llIlLn,UD I'" I'ltlt, - - - - ~"'SlElUll:\:s..!:,"_ ~ DAVlDM X1IW'AItZ ,~ ~ENCES.L'\"r' .~-"_IF_ . ~~"k:''''-.v ~ GRAND AVENUE MASTER PLAN '_....~ -----.- ~......- 'q>' \ g of ~:r EXHIBIT "C" APPROVED SITE PLAN FOR PHASE IV OF THE PROJECT W:\Southlake\Agreements\EDC Agreements\Parking Agrmt. Final.030205. wpd Page 19 of 22 , ilii! 1;1 i;q Ii ; \.......- : // ~(- iil: :::: E !i ii:1 j, i.l WI i ,,;,9 I :I:! ;. I ',il I J M! ;/Ir. . IJI .:ff' - ,-. ,- ,II! IIII ! ~ I'l\\ .1!:'l : :: I~I: l't ~I " .!If II ! " !. I J_-- J::: \ /1-' Q 1J-"5l'--jf,. . .- I f/!! . ',\ r"'s:f'}. > . / .J \.. I.. ~,,\\'%. <<",4J~/ . I i~ .'lI i" /'#'" ' , /' . I ! .:",.;\ ..\o../,-'j // · .' " " . . . / . I' ;' \./ ,., 1>>, ' C /' I ., ......... ,~. / ;1 t:;;,-;:.',:'-'\ "\. .' ". \.\\ <..\~\ . , \ ....' //,.' ~ .j' "., , . . . ~ '. . . . l i ,," /' ..'''' , · .' /,."", ' ., I; ,~ \. >/ \\.,\\' \ ./ / //;;;;~'4fI;.}-:::y\ . \ ", ,., \" ,. " . .-;::/ ,:# /-(.~).,,",'i/. ;: \ if" ,'c.' :'t. ' ,/:/ R/< ~\">"" / ','/ . ,,:; . ,:~ \ \\~. /..-'V ""..-<:/0 ,../</~ \ }..,- ...;~,,\"> .. . ", ~ / /..",,''''' '.' ." If . \\' v/ // ~ " //~.\ \' I .. . .. /:,/~, '.'v' ":~> ~, ! . ....r;",' '11>.,./ ,,/ " / // ~,,~t \. ".\,\>/" \~~'~ " \ ... ~ >// ~; \ /11 \ \ /:;ii..",. I I ~l ~l \~l\\\\ ...../'\ I EXHIBIT "0" LIST OF LIENS, LEASES, TENANCIES, ENCUMBRANCES, AND CONCESSION AGREEMENTS W:ISouth lake\AgreementslEDC Agreements\Parking Agrmt. Final. 030205. wpd Page 20 of 22 .__..."'....,-~-",.........._._-_........._.~,_............;".,.;";,..._-~.,------'..----'--..-..... EXHIBIT D LIST OF LIENS. LEASES. TENANCIES. ENCUMBRANCES AND CONCESSION AGREEMENTS PHASE 1: Owner: Property: Lienholder: Encumbrances: Concession Agreements: Tenancies: American Eagle Animal Crackers Ann Taylor Any Occasion Gifts BA Framer Banana Republic Barse Retail Bath and Body Works Bless Your Heart Boardroom Bombay Company Cafe Express Charmed by Melissa Chico's Circa Design Corner Bakery D'Hierro Eddie Bauer Eyes Nouveau FNB of Wichita Falls Francesca's Gap Gap Kids Harold's Jamba Juice James Avery Jos A. Bank Just Add Water Kobe Steakhouse Lane Bryant LC Footwear Lover's Eggroll Magic Moon Mi Cocina Milwaukee Joe's Oshkosh B'Gosh Retail Paws and Claws/Sweet Shop Riding High/Mole Hole Rockfish Exar Town Square Ventures, L.P. Blocks 1,2,4 (excluding Lot 3), and 5 Nomura Credit & Capital, Inc. Per Phase I Final Plat None Ruby Sharper Image Sprint Starbucks Stylette dba Glass Slipper Sweet & Sassy Talbots Terrace Day Spa & Salon Thai Chili The Container Store The Mother's Place The Paper Closet Three Feet Victoria's Secret Village Jewelers (Block 2) Village Jewelers (Block 5) Villeroy & Boch Williams-Sonoma X's & O's Yong Nim Cho Abernathy Audra D. Boxma, PA Benefit Architects Bradley, Luce & Bradley Brownstones Century 21 Charles Schwab Coldwell Banker Collins Industries Cooper & Stebbins, L.P. Countrywide Home Loans Dallas Morning News Dr Angela Bowers Dr. Mary Wyant Dr. Scott Kasden Dr. Steven J Fuqua Dr. Todd White Educational Tech Edward Jones General Mills Genentech Gregory Taylor Harken Energy Corporation Harold's (Office) Heinen & Associates Hometrust Mortgage House of Representatives Harken Energy Corporation Johnson & Johnson Johnson Rooney Welch Just for Kids Keller Williams Realty Larry North Total Fitness Larsen & King Johnson & Johnson Lifeguard (Block 5) Lyons, Butler & Pesserillo Main Street Financial (Tamer) Micheal Bryan Natural Healing Center Ortho-Alliance/Johnson & Collins Pearlstone Energy-M Young Prizm Development Rattikin Title Group Southtrust Mortgage Stifel, Nicolas & Co Swedish Match Sylvan Learning Center Terrace Day Spa (office) Texas Nations The Langley Holding Co Town Square Mortgage Vicki T ru itt Viking Office Products Villeroy & Boch Williams- Sonoma Storage Farmers Insurance Feet Feet Jr\ 0 F -;-'r Owner: Property: Lienholder: Encumbrances: Concession Agreements: Tenancies: Crate & Barrel L'Occitane Talbots Petites and Kids Vignettes GSCS Owner: Property: Lienholder: Encumbrances: Concession Agreements: Tenancies: PHASE IV: Owner: Lienholder: Encumbrances: Town Square Ventures II, L.P. Block 3, Lot I Nomura Credit & Capital, Inc. Per Phase I Final Plat None Insight Equity Holdings Jennifer Grey/Henry S. Miller Lifeguard Newell Rubbermaid Ops Technology Salomon Smith Barney Standerfer Law Firm Origins Pottery Barn SLTS Grand Avenue, L.P. Block 3, Lot 2 and Block 4, Lot 3 Cooper & Stebbins, L.P. (to be assigned) Per Phase I Preliminary Plat None None SL TS Grand Avenue, L.P. Cooper & Stebbins, L.P. (to be assigned to ChaselBank of America/Comerica in conjunction with closing of the Grand Avenue construction loan) Per Phase IV Preliminary Plat (to be supplemented by franchise utility easements when civil drawings are complete) None Concession Agreements: Tenancies: Signed Leases/Contracts: Hobbs & Curry Family Limited Partnership (Hotel) Harkins Theater Barnes & Noble Coldwater Creek Snuffers Express Christopher & Banks Anthropologie Brighton Claddagh Pubs of Southlake Coldwater Creek Lease in Final Negotiation: Cheesecake Factory Brio Claire's Chico's Lucky Brand White HouselBlack Market New York & Co. Potbelly Sandwich Works Elisabeth Sigrid Olsen Robb & Stucky/Henredon Apple Damon & Drapers 'r1of 'J-t