Item 6C (4) HUGHES ,LUCE LLP 1717 Main Street,Suite 2800
ATTORNEYS AND COUNSELORS Dallas,Texas 75201
214,939.5500
214.939.6100 fax
April 3,2007 hughesluce.com
Ian P. Fredrickson
214.939.5460
Ian.Fredrickson@hughesluce.com
Dennis Killough
City of Southlake
1400 Main Street
Southlake,TX 76092
Re: Encroachment Agreement pertaining to Masco Service Corp.'s dedication of land
to the City of Southlake
Dear : Mr. Killough,
This morning you asked me to explain why we must include a 25-year term in our
Encroachment Agreement with the City of Southlake. The purpose of the Encroachment
Agreement is to secure the owners' ability to provide necessary parking for tenants of the
property while permitting dedication of the Encroachment Area to the City. While you
mentioned that the City anticipates making improvements to the Encroachment Area within
three years, it is vital that the owners be able to supply parking in this area until such
improvements are constructed.
The Agreement requires that the owners locate alternative parking upon termination. A
shorter term would accelerate this burden upon the owners and may create an untenable
business situation if alternative arrangements are not immediately identified. Tenants cannot
operate their business without adequate parking and it would advantage both the owners and
the City to allow the owners as much time as possible to obtain additional parking.
Once public improvements are made or if the area is needed for a public purpose, the
City shall have the ability to terminate the Agreement, according to its terms, upon 90 days'
written notice if any public use conflicts with the owners' use of the Area as long as such
termination is reasonable. These provisions afford ample protection of the City's interests.
The owners will be dedicating a sizable portion of land to the City for a trail system and
public right-of-way. The City has previously executed an Encroachment Agreement with a
25-year term, and we would like to be treated fairly based on what we are prepared to give to
the City. Thank you and I look forward to meeting you this evening.
Sincerely,
Ian P. Fredrickson
013629.00001:1026249.01