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Item 9BCity of Southlake, Texas MEMORANDUM March 4, 2008 To: Shana Yelverton, City Manager From: Robert H. Price, P.E., Public Works Director Subject: Approve a revised Commercial Developer Agreement with Carroll /1709 Ltd. for Shops of Southlake, a 29.3 Acre Development at the Southeast Corner of FM 1709 and Carroll Avenue Action Requested: Approve a revised Commercial Developer Agreement with Carroll /1709 Ltd. for Shops of Southlake, a 29.3 Acre Development at the Southeast Corner of FM 1709 and Carroll Ave. Background Information: The site plan for the Shops of Southlake was approved on October 4, 2005. The final plat was approved on September 22, 2005. This development contains the construction of an HEB Central Market grocery store. On December 6, 2005, the Council approved a Partial Developer's Agreement to allow the grading of the site and the construction of drainage, water and sanitary sewer improvements to begin prior to the approval of the 380 Agreement. This Revised Developer's Agreement, approved on January 17, 2006 covers, all the construction of the grading, drainage, public water lines, public sanitary sewer lines, off -site paving and park improvement as appeared in the 380 Agreement. The Developer constructed approximately 5,500 LF of storm sewer lines, approximately 1,200 LF of reinforced concrete box culvert, approximately 4,300 LF of public water lines, and approximately 2,300 LF of public sanitary sewer lines as well as detention facilities on the site. The Developer constructed two deceleration lanes on FM 1709, two deceleration lanes on North Carroll Avenue, dual left turn lanes (northbound) on South Carroll Avenue at FM1709 and an additional lane to the south to provide a left turn lane at Westmont Drive into Oaktree Estates. The City Council agreed to reimburse the Developer for this construction in an amount not to exceed $370,000.00. The roadway impact fee for Shops of Southlake is approximately $225,000.00. In addition, the City has reimbursed the Developer an amount not to exceed $13,000 for the construction of the sidewalk along S. Carroll Avenue. Exhibit A is a brief description of the additional participation requested by the developer for this project that Public Works feels that it can justify for recommendation to the Council. The recommended additional participation for this project is $25,231.46. Financial Considerations: In addition to $370,000.00 for construction of off -site paving, the City will reimburse the Developer in an amount of $25,231.46 for additional items requested. Citizen Input/ Board Review: None Legal Review: This is the City's standard commercial Developer's agreement, originally, drafted by the City Attorney. Alternatives: The City Council may approve the revised Commercial Developer's Agreement, modify it or deny it. Supporting Documents: Commercial Developer Agreement (Revised) Location Map Exhibit A Staff Recommendation: Authorize the Mayor to execute a revised Commercial Developer's Agreement for Shops of Southlake, a 29.3 acre development at the southeast corner of FM 1709 and Carroll Ave. Staff Contact: Robert H. Price, P.E., Public Works Director Gordon J. Mayer, Jr., P.E., City Engineer Cheryl Taylor, P.E., Civil Engineer SHOPS OF SOUTHLAKE REVISED COMMERCIAL DEVELOPER AGREEMENT An agreement between the City of Southlake, Texas, hereinafter referred to as the "City ", and the undersigned Developer, hereinafter referred to as the "Developer", of the Shops of Southlake, hereinafter referred to as "Addition" to the City of Southlake, Tarrant County, Texas, for the installation of certain community facilities located therein, and to provide City services thereto. It is understood by and between the parties that this Agreement is applicable to the Addition (a commercial development) and to the off - site improvements necessary to support the Addition. GENERAL REQUIREMENTS A. It is agreed and understood by the parties hereto that the Developer shall employ a civil engineer licensed to practice in the State of Texas for the design and preparation of the plans and specifications for the construction of all facilities covered by this Agreement. B. The Developer will present to the City either a cash escrow, Letter of Credit, performance bond and payment bond acceptable to the City guaranteeing and agreeing to pay an amount equal to 100% of the value of the construction cost of all the public facilities to be constructed by the Developer, and providing for payment to the City of such amounts, up to the total remaining amounts required for the completion of the public facilities if the Developer fails to complete the work within two (2) years of the signing of this Agreement between the City and Developer. All bonds shall be issued by a Best -rated bonding company. All letters of credit must meet the Requirements for Irrevocable Letter of Credit attached hereto and incorporated herein. The value of the performance bond, letter of credit or cash escrow will reduce at a rate consistent with the amount of work that has been completed by the Developer and accepted by the City. Performance and payment bond, letter of credit or cash escrow from the prime contractor(s) or other entity reasonably acceptable to the City, hereinafter referred to as Contractor, will be acceptable in lieu of Developer's obligations specified above. Page 1 of 20 C. The Developer agrees to furnish to the City either maintenance bonds, letter of credit or cash escrow amounting to 100% of the cost of construction of underground public utilities and 100% for the paving. These maintenance bonds, letter of credit or cash escrow will be for a period of two (2) years and will be issued prior to the final City acceptance of the Addition. The maintenance bonds, letter of credit or cash escrow will be supplied to the City by the contractors performing the work, and the City will be named as the beneficiary if the contractors fail to perform any required maintenance. D. It is further agreed and understood by the parties hereto that upon acceptance by the City, title to all facilities and improvements mentioned herein above which are intended to be public facilities shall be vested in the City, and Developer hereby relinquishes any right, title, or interest in and to said facilities or any part thereof. It is further understood and agreed that until the City accepts such improvements, the City shall have no liability or responsibility in connection with any such facilities. Acceptance of the facilities for this provision and for the entire Agreement shall occur at such time that the City, through its City Manager or his duly appointed representative, provides Developer with a written acknowledgement that all facilities are complete, have been inspected and approved, and are being accepted by the City. E. On all public facilities included in this Agreement for which the Developer awards his own construction contract, Developer agrees to the following procedure: 1. Developer agrees to pay the following: a. Inspection fees equal to three percent (3 %) of the cost of the water, street, drainage and sanitary sewer facilities, on all facilities included in this agreement for which Developer awards his or her own construction contract, to be paid prior to construction of each phase and based on actual bid construction cost; b. Administrative Processing Fee equal to two percent (2 %) of the cost of water, street, drainage and sanitary sewer facilities, on all facilities included in this Agreement for which Developer awards his or her own construction contract, to be paid prior to construction of each phase and based on actual bid construction cost; C. Trench testing (95% Standard); Page 2 of 18 d. The additional charge for inspections during Saturday, Sunday, holidays, and after normal working hours; e. Any charges for retesting as a result of failed tests; f. All gradation tests required to insure proper cement and /or lime stabilization. 2. The City agrees to bear the expense of: a. All nuclear density tests on the roadway subgrade (95% Standard); b. Technicians time for preparing concrete cylinders; and C. Concrete cylinder tests and concrete coring samples. The City can delay connection of buildings to service lines or water mains constructed under this Agreement until said water mains and service lines have been completed to the satisfaction of and acceptance by the City. F. The Developer will be responsible for mowing all grass and weeds and otherwise reasonably maintaining the aesthetics of all land and lots in said Addition which have not been sold to third parties. After fifteen (15) days written notice, should the Developer fail in this responsibility, the City may contract for this service and bill the Developer for reasonable costs. G. Any guarantee of payment instrument (Performance Bond, Letter of Credit, etc.) submitted by the Developer or Contractor on a form other than the one which has been previously approved by the City as "acceptable" shall be submitted to the City Attorney and this Agreement shall not be considered in effect until such City Attorney has approved the instrument. Approval by the City shall not be unreasonably withheld or delayed. H. Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, provided that the City, through the City Manager, shall retain the right to reject any surety company as a surety for any work under this or any other Developer's Agreement within the City regardless of such company's authorization to do business in Texas. Approval by the City shall not be unreasonably withheld or delayed. The Developer agrees to fully comply with the terms and conditions of all other applicable development regulations and ordinances of the City. Page 3 of 18 J. The Developer agrees that the completed project will be constructed in conformance with the Development Site Plan, Construction Plans and other permits or regulatory authorizations granted by the City during the development review process. II. FACILITIES A. ON -SITE WATER The Developer hereby agrees to install water facilities to service lots as shown on the final plat of the Addition. Water facilities will be installed in accordance with plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the Developer agrees to complete this installation in accordance with Ordinance No. 170 and shall be responsible for all construction costs, materials and engineering. In the event that certain water lines are to be oversized because of City requirements, the City will reimburse the Developer for the oversize cost greater than the cost of an 8" line. Additionally, the City agrees to provide temporary water service at Developer's request and expense, for construction, testing and irrigation purposes only, to individual lots during the construction of buildings, even though sanitary sewer service may not be available to the buildings. B. DRAINAGE Developer hereby agrees to construct the necessary drainage facilities within the Addition. These facilities shall be in accordance with the plans and specifications to be prepared by Developer's engineers, released by the City, and made part of the final plat as approved by the Planning and Zoning Commission. The Developer hereby agrees to fully comply with all EPA and old TNRCC requirements relating to the planning, permitting and management of storm water which may be in force at the time that development proposals are being presented for approval by the City. C. STREETS The street construction in the Addition or adjacent to the Addition will be installed in accordance with plans and specifications to be prepared by the Developer's engineer and released by the Director of Public Works. 1. The Developer will be responsible for: Page 4 of 18 2. All street improvements will be subject to inspection and approval by the City. No work will begin on any street included herein prior to complying with the requirements contained elsewhere in this Agreement. All water, sanitary sewer, and storm drainage utilities which are anticipated to be installed within the street or within the street right -of -way will be completed prior to the commencement of street construction on the specific section of street in which the utility improvements have been placed or for which they are programmed. It is understood by and between the Developer and the City that this requirement is aimed at substantial compliance with the majority of the pre - planned facilities. It is understood that in every construction project a decision later may be made to realign a line or service which may occur after construction has commenced. The Developer has agreed to advise the Director of Public Works as quickly as possible when such a need has been identified and to work cooperatively with the City to make such utility change in a manner that will be least disruptive to street construction or stability. D. ON -SITE SANITARY SEWER FACILITIES The Developer hereby agrees to install sanitary sewage collection facilities to service lots as shown on the final plat of the Addition. Sanitary sewer facilities will be installed in accordance with the plans and specifications to be prepared by the Developer's engineer and released by the City. Further, the Developer agrees to complete this installation in compliance with all applicable city ordinances, regulations and codes and shall be responsible for all construction costs, materials, engineering, permits and Impact Fees. In the event that certain sewer lines are to be oversized Page 5 of 18 because of City requirements, the City will reimburse the Developer for the oversize cost greater than the cost of an 8" line. E. EROSION CONTROL During construction of the Addition and after the streets have been installed, the Developer agrees to keep the streets free from soil build -up. The Developer agrees to use soil control measures, such as those included in NCTCOG STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION, DIVISION 1000 EROSION AND SEDIMENT CONTROL, to prevent soil erosion. It will be the Developer's responsibility to present to the Director of Public Works a soil control development plan that will be implemented for this Addition. When in the opinion of the Director of Public Works there is sufficient soil build -up on the streets or other drainage areas and notification has been given to the Developer, the Developer will have seventy -two (72) hours to clear the soil from the affected areas. If the Developer does not remove the soil within 72 hours, the City may cause the soil to be removed either by contract or City forces and place the soil within the Addition at the contractor's expense. All fees owed to the City will be collected prior to acceptance of the Addition. After construction of the Addition and prior to acceptance by the City, the Developer agrees to have a permanent erosion control plan prepared and approved by the Director of Public Works and have the plan installed and working, effectively, in the opinion of the Director of Public Works. This erosion control will prevent soil erosion from the newly created lot /lots from washing into street rights of way, drainage ways or other private property. F. AMENITIES It is understood by and between the City and Developer that the Addition may incorporate a number of unique amenities and aesthetic improvements such as ponds, aesthetic lakes, unique landscaping, walls, and may incorporate specialty signage and accessory facilities. The Developer agrees to accept responsibility for the construction and maintenance of all such aesthetic or specialty items such as walls, vegetation, signage, landscaping, street furniture, pond and lake improvements until such responsibility is turned over to a homeowners association. Page 6 of 18 G. USE OF PUBLIC RIGHT -OF -WAY It is understood by and between the City and Developer that the Developer may provide unique amenities within public right -of -way, such as landscaping, irrigation, lighting, etc., for the enhancement of the Addition. The Developer agrees to maintain these amenities. The Developer understands that the City shall not be responsible for the replacement of these amenities under any circumstances and further agrees to indemnify and hold harmless the City from any and all damages, loss or liability of any kind whatsoever by reason of injury to property or third person occasioned by its use of the public right -of -way with regard to these improvements and the Developer shall, at his own cost and expense, defend and protect the City against all such claims and demands. H. START OF CONSTRUCTION Before the construction of the water, sewer, streets or drainage facilities can begin, the following must take place: 1. Approved payment and performance bonds must be submitted to the City in the name of the City prior to commencement of any work. 2. At least six (6) sets of construction plans to be stamped "Released for Construction" by the Director of Public Works must be submitted. 3. All fees required to be paid to the City. 4. Developer Agreement must be executed by all parties. 5. The Developer, or Contractor, shall furnish to the City a policy of general liability insurance, naming the City as co- insured, prior to commencement of any work. All insurance must meet the Requirements of Contractor's Insurance attached hereto and incorporated herein. 6. A Pre - Construction Meeting to be held with all Contractors, major Sub - Contractors, Utilities and appropriate Government Agencies. Page 7 of 18 III. GENERAL PROVISIONS A. INDEMNIFICATION DEVELOPER COVENANTS AND AGREES TO INDEMNIFY AND DOES HEREBY INDEMNIFY, HOLD HARMLESS AND DEFEND CITY, ITS OFFICERS, AGENTS, SERVANTS AND EMPLOYEES, FROM AND AGAINST ANY AND ALL CLAIMS OR SUITS FOR PROPERTY DAMAGE OR LOSS AND /OR PERSONAL INJURY, INCLUDING DEATH, TO ANY AND ALL PERSONS, OF WHATSOEVER KIND OR CHARACTER, WHETHER REAL OR ASSERTED, (INCLUDING, WITHOUT LIMITATION, REASONABLE FEES AND EXPENSES OF ATTORNEYS, EXPERT WITNESSES AND OTHER CONSULTANTS), ARISING OUT OF OR IN CONNECTION WITH, DIRECTLY OR INDIRECTLY, THE CONSTRUCTION, MAINTENANCE, OCCUPANCY, USE, EXISTENCE OR LOCATION OF SAID IMPROVEMENT OR IMPROVEMENTS, AND SHALL FURTHER BE LIABLE FOR INJURY OR DAMAGE TO CITY PROPERTY, ARISING OUT OF OR IN CONNECTION WITH ANY AND ALL ACTS OR OMISSIONS OF DEVELOPER, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, INVITEES OR TRESPASSERS. DEVELOPER AGREES TO INDEMNIFY THE CITY, ITS OFFICERS AND EMPLOYEES FOR ANY DAMAGES, CLAIMS OR LIABILITIES ARISING FROM THE NEGLIGENT ACT OR OMISSION, OR OF THE CONCURRENT NEGLIGENT ACT OR OMISSION, OF THE CITY, ITS OFFICERS AND EMPLOYEES. B. Venue of any action brought hereunder shall be in Fort Worth, Tarrant County, Texas. C. Approval by the Director of Public Works or other City employee of any plans, designs or specifications submitted by the Developer pursuant to this Agreement shall not constitute or be deemed to be a release of the responsibility and liability of the Developer, his engineer, employees, officers or agents for the accuracy and competency of their design and specifications. Such approval shall not be deemed to be an assumption of such responsibility and liability by the City for any defect in the design and specifications prepared by the consulting engineer, his officers, agents, servants or employees, it being the intent of the parties that approval by the Director of Public Works signifies the City's approval on only the general design concept of the improvements to be constructed. In this connection, the Developer shall for a period of two (2) years after the acceptance by the City of the completed construction project, indemnify and hold harmless the City, its officers, agents, servants and employees, Page 8 of 18 from any loss, damage, liability or expense on account of damage to property and injuries, including death, to any and all persons which may arise out of any defect, deficiency or negligence of the engineer's designs and specifications incorporated into any improvements constructed in accordance therewith, and the Developer shall defend at his own expense any suits or other proceedings brought against the City, its officers, agents, servants or employees, or any of them, on account thereof, to pay all expenses and satisfy all judgments which may be incurred by or rendered against them or any of them in connection herewith. D. This Agreement or any part herein, or any interest herein, shall not be assigned by the Developer without the express written consent of the City Manager, which shall not be unreasonably withheld or delayed. E. On all facilities included in this Agreement for which the Developer awards his or her own construction contract, the Developer agrees to employ a construction contractor who is approved by the City, and whose approval shall not be unreasonably withheld or delayed, said contractor to meet City and statutory requirements for being insured, licensed and bonded to do work in public projects and to be qualified in all respects to bid on public projects and to be qualified in all respects to bid on public projects of a similar nature. In addition, the Developer, or Contractor shall furnish the payment and performance bonds in the name of the City prior to the commencement of any work hereunder and shall also furnish to the City a policy of general liability insurance. F. Work performed under the Agreement shall be completed within two (2) years from the date thereof. In the event the work is not completed within the two (2) year period, the City may, at its election, draw down on the performance bond, letter of credit or other security provided by Developer and complete such work at Developer's expense; provided, however, that if the construction under this Agreement shall have started within the two (2) year period, the City may agree to renew the Agreement with such renewed Agreement to be in compliance with the City policies in effect at that time. G. Prior to final acceptance of the Addition, the Developer shall provide to the City three (3) copies of Record Drawings of the Addition, showing the facilities as actually constructed. H. Such drawings will be stamped and signed by a registered professional civil engineer. In addition, the Developer shall provide electronic files showing the grading plan and drainage area map; the plan and profile of Page 9 of 18 the sanitary sewer, storm drain, roadway and waterline; all lot lines, and tie in to the state Plane Coordinate System. IV. OTHER ISSUES A. ON -SITE DRAINAGE In accordance with the approved site plan, the Developer will construct approximately 5,500 LF of storm sewer lines and approximately 1,200 LF of reinforced concrete box culvert. B. ON -SITE UTILITIES In accordance with the approved site plan, the Developer will construct approximately 4,300 LF of public water lines and approximately 2,300 LF of public sanitary sewer lines. C. SCREENING WALL The Developer will construct a 14' (feet) high or greater, screening wall as required by approved site plan. D. OFF -SITE PAVING In accordance with the approved site plan, the Developer will construct two deceleration lanes on South Carroll Ave. and two deceleration lanes on FM 1709. The Developer will, also, construct an additional lane on South Carroll Ave. to the south to provide a left turn lane to Westmont Drive and construct northbound dual left turn lanes on South Carroll Ave. at FM 1709. The City will reimburse the Developer for the off -site paving in an amount not to exceed $370,000.00 D.1 ADDITIONAL CITY PARTICIPATION Based upon a request by the developer for actual construction costs incurred in the development of this project and a review by the Public works staff, the city agrees to grant an additional amount of $25,231.46 per attached Exhibit A for the off -site improvements related to S. Carroll Avenue and the FM 1709 deceleration lanes. E. OFF -SITE SIDEWALK The Developer will construct a sidewalk from the southwest corner of the project, southerly along the east right of way of South Carroll Ave. to Westmont Drive. The City will reimburse the Developer in accordance with the Economic Development Program Agreement approved February Page 10 of 18 6, 2006, by and between the City and the Developer, attached hereto as Attachment "A" (the "380 Agreement "). F. PARK FEES The Developer will dedicate 32,402 SF of land as a public park and construct improvements in the park in accordance with the 380 Agreement and the City will reimburse the Developer for these improvements in accordance with the 380 Agreement, attached hereto as Attachment "A ". G. SOUTHERNMOST BUFFERYARD The Developer will plant trees in the southernmost bufferyard in accordance with the approved site plan and provide irrigation for these trees. The City will pay for the water usage and reimburse the Developer an amount for the trees in accordance with the 380 Agreement, attached as Attachment "A ". H. OVERHEAD UTILITIES The Developer will cooperate with the City in the City's effort to place the overhead utilities along FM 1709 and along the most northerly 280' (feet) of South Carroll Ave. underground at the City's expense. The estimated cost for placing these overhead utilities underground is approximately $220,000.00. TREE PRESERVATION ORDINANCE All construction activities shall comply with the current Tree Preservation Ordinance requirements and as may be amended by the City Council. Such conditions include, but are not limited to, proper posting of tree protection warning signs and tree protective fencing to be maintained throughout the duration of the project. Page 11 of 18 SIGNED AND EFFECTIVE on the date last set forth below. DEVELOPER: Carroll 709 LTD., a Texas Limited Partnership By: Carroll 709 One, L. C., a Texas Limited Liability Company, Its General Partner Title: Address: 3102 Maple Ave., Suite 500 Dallas, Texas 75201 Phone. 2141954 -0300 STATE OF TEXAS COUNTY OF On , before me, , Notary Public, personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Notary Public My commission expires: (SEAL) Page 12 of 18 CITY OF SOUTHLAKE, TEXAS la Andy Wambsganss, Mayor ATTEST: Lori Payne, City Secretary Date: Page 13 of 18 REQUIREMENTS FOR IRREVOCABLE LETTER OF CREDIT 1. The Letter of Credit must have duration of at least one year. 2. The Letter of Credit may be substituted for utility security deposits exceeding $10,000.00. The City reserves the right to specify the face amount of the letter of credit. 3. The Letter of Credit must be issued by a FDIC insured bank in a form acceptable to the City of Southlake. The City reserves the right to approve /disapprove the bank issuing the Letter of Credit. 4. The Letter of Credit must be issued by a bank that has a minimum capital ratio of six (6 %) percent, and has been profitable for each of the last two consecutive years. 5. The customer must provide the City with supporting financial information on the bank to allow the City to ascertain requirements are met. Suitable financial information would be the previous two (2) years December 31 Call Reports submitted to the FDIC and audited financial statements. 6. Partial drawings against Letters of Credit must be permitted. 7. The City must be able to draft on sight with proof of amount owed. 8. The customer pays any and all fees associated with obtaining Letter of Credit. 9. Expiring Letter of Credit must be replaced by substitute Letters of Credit at least 30 days prior to the expiration date on the Letter of Credit held by the City. Page 14 of 18 REQUIREMENTS FOR CONTRACTOR'S INSURANCE Contractor's Insurance 1. Without limiting any of the other obligations or liabilities of the CONTRACTOR, during the term of the Contract, the CONTRACTOR shall purchase and maintain the following minimum insurance coverages with companies duly approved to do business in the State of Texas and satisfactory to the CITY. In this section "Project" shall mean the public facilities to be constructed by Developer or under Developer's contract with a CONTRACTOR. Coverages shall be of the following types and not less than the specified amounts: Workers' compensation as required by Texas law, with the policy endorsed to provide a waiver of subrogation as to the CITY; employer's liability insurance of not less than the minimum statutory amounts. b. Commercial general liability insurance, including premises- operations; independent CONTRACTOR's liability, completed operations and contractual liability covering, but not limited to, the liability assumed under the indemnification provisions of this Contract, fully insuring CONTRACTOR's (or Subcontractor's) liability for injury to or death of CITY's employees and third parties, extended to include personal injury liability coverage with damage to property of third parties, broad form property damage, with minimum limits as set forth below: General Aggregate . .....................$2,000,000 Bodily Injury $1,000,000 Each Occurrence Property Damage $1,000,000 Each Occurrence Products — Components /Operations Aggregate . $1,000,000 Personal and Advertising Injury ............ $ 1,000,000 (With Employment Exclusion deleted) Each Occurrence ...................... $ 1,000,000 Contractual Liability: Bodily Injury $1,000,000 Each occurrence Property Damage $1,000,000 Each occurrence The policy shall include coverage extended to apply to completed operations, asbestos hazards (if this project involves work with asbestos) and ECU (explosion, collapse and underground) hazards. The completed operations coverage must be maintained for a minimum of one year after final completion and acceptance of the work, with evidence of same filed with CITY. C. Comprehensive automobile and truck liability insurance, covering owned, hired and non - owned vehicles, with a combined bodily injury and property damage minimum limit of $1,000,000 per occurrence; or separate limits of $500,000 for bodily injury (per person), and $500,000 for property damage. Such insurance shall include coverage for loading and unloading hazards. d. Property Insurance (Builder's All Risk) 0) CONTRACTOR shall purchase and maintain, at all times during the term of its Contract with the Developer property insurance written on a builder's risk "all- Page 15 of 18 risk" or equivalent policy form in the amount of the initial contract price, plus value of subsequent contract modifications and cost of materials supplied or installed by others, comprising total value for the entire Project at the site on a replacement cost basis without optional deductibles. Such property insurance shall be maintained, unless otherwise in writing by all persons and entities who are beneficiaries of such insurance, until final payment has been made or until no person or entity other than the CITY has an insurable interest in the property required by this paragraph to be covered, whichever is later. This insurance shall include interests of the CITY, the CONTRACTOR, Subcontractors and Sub - Subcontractors in the Project. (ii) Property insurance shall be on an "all- risk" or equivalent policy form and shall include, without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and startup, temporary buildings and debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable compensation for CONTRACTOR's services and expenses required as a result of such insured loss. (iii) If the insurance required by this paragraph requires deductibles, the CONTRACTOR shall pay costs not covered because of such deductibles. (iv) This property insurance shall cover portions of the Work stored off the site, and also portions of the Work in transit. d. OWNER's Protective Liability Insurance: (i) CONTRACTOR shall obtain, pay for and maintain at all times during the prosecution of the work under the contract between the CONTRACTOR and the Developer, a CITY's protective liability insurance policy naming the CITY as insured for property damage and bodily injury, which may arise in the prosecution of the work or CONTRACTOR's operations under the contract. (ii) Coverage shall be on an "occurrence" basis, and the policy shall be issued by the same insurance company that carries the CONTRACTOR's liability insurance with a combined bodily injury and property damage minimum limit of $1,000,000 per occurrence. e. "Umbrella" Liability Insurance: The CONTRACTOR shall obtain, pay for and maintain umbrella liability insurance during the term of the Contract between the CONTRACTOR and the Developer, insuring CONTRACTOR for an amount of not less than $5,000,000 per occurrence combined limit for bodily injury and property damage that follows form and applies in excess of the primary liability coverages required herein above. The policy shall provide "drop down" coverage where underlying primary insurance coverage limits are insufficient or exhausted. Page 16 of 18 Policy Endorsements Each insurance policy to be furnished by CONTRACTOR shall include the following conditions by endorsement to the policy: a. name the CITY as an additional insured as to all applicable policies; b. each policy shall require that 30 days prior to cancellation, non - renewal or any material change in coverage, a notice thereof shall be given to CITY by certified mail. If the policy is canceled for nonpayment of premium, only 10 days written notice to CITY is required; C. the term "CITY" shall include all authorities, boards, bureaus, commissions, divisions, departments and offices of the CITY and individual members, employees and agents thereof in their official capacities, and /or while acting on behalf of the CITY; d. the policy please "other insurance" shall not apply to the CITY where the CITY is an additional insured on the police. 2. Special Conditions a. Insurance furnished by the CONTRACTOR shall be in accordance with the following requirements: any policy submitted shall not be subject to limitations, conditions or restrictions deemed inconsistent with the intent of the insurance requirements to be fulfilled by CONTRACTOR. The CITY's decision thereon shall be final; ii. all policies are to be written through companies duly licensed to transact that class of insurance in the State of Texas; and iii. all liability policies required herein shall be written with an "occurrence" basis coverage trigger. b. CONTRACTOR agrees to the following: CONTRACTOR hereby waives subrogation rights for loss or damage to the extent same are covered by insurance. Insurers shall have no right of recoveiv or subrogation against the CITY, it being the intention that the insurance policies shall protect all parties to the contract and be primaiv coverage for all losses covered by the policies: ii. companies issuing the insurance policies and CONTRACTOR shall have no recourse against the CITY for payment of any premiums or assessments for any deductibles, as all such premiums and deductibles are the sole responsibility and risk of the CONTRACTOR; iii. approval, disapproval or failure to act by the CITY regarding any insurance supplied by the CONTRACTOR (or any Subcontractors) shall not relieve the CONTRACTOR of full responsibility or liability for damages and accidents as set forth in the Contract Documents or this Agreement. Neither shall be bankruptcy, insolvency or denial of liability by the insurance company exonerate the CONTRACTOR from liability; Page 17 of 18 v vi deductible limits on insurance policies exceeding $10,000 require approval of the CITY; any of such insurance policies required under this paragraph may be written in combination with any of the others, where legally permitted, but none of the specified limits may be lowered thereby; vii. prior to commencement of operations pursuant to this Contract, the Developer or the Developer's CONTRACTOR shall furnish the CITY with satisfactory proof that he has provided adequate insurance coverage in amounts and by approved carriers as required by this Agreement; viii. CONTRACTOR shall provide notice of any actual or potential claim or litigation that would affect required insurance coverages to the CITY in a timely manner; ix. CONTRACTOR agrees to either require its Subcontractors to maintain the same insurance coverage and limits as specified for the CONTRACTOR or coverage of Subcontractors shall be provided by the Contract; and X. Prior to the effective date of cancellation, CONTRACTOR shall deliver to the CITY a replacement certificate of insurance or proof of reinstatement. Page 18 of 18 0 Q U) 0 U) L R Q t � O O Co O N O Fa 'C=f) 'v a E E O U al V! R t 0 O M .0 ! L a) C y N 0 C o a) - N `O (6 C R y U R - 0 rn E o a) 3 o c t a CL c R o - 0) c ya) t m a E a`)m > _c R ) rn 0c: a) coa a) �� ai 3� y mcr 6 m °� �3 m N 3 v 0 C: m o a) o - - 6 - 6 y c c a) _ 2� ° > N .�.-• a) m vi N a) . N R n R R rn o > n OO 0 a) 0 N > a y o.0 a � m m � R0 g 1 15 ° a� R o p o N o o o° R U U) > > t E 'O N > 0 O D U D N N 3 y° Er O R t Q U) _ E .O w o N E .� .c c R a) ay) n 3 E c rn a) R a) y E o H .S o E 0 n a a) > O m_ >, N ,ul m n U O U p :3 cm Q U) U .� � U N N D O t H U O O w R .V a) O a) R O C E .� '= C C C ".' 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U) a o 0 U t5 L O U '2 '6 O '6 O '6 O '6 O '6 0 6 N 0 0 N = O O 2 Q Q 0 U U U L E E • L N r a) N N a) a) a) . 2 y Q R U 0 R V E R R R R R U O R L 0 E 0 R al 0 '> C o U U U U U U Q N R a H W c O 0 E E E E E E U O c w O Q a) a) a) a) a) a) o Q 2 6 w O O - 6 - 6 - 6 - 6 - 6 '6 O 2� N U Of O O Of U) OFFICIAL RECORL ECONOMIC DEVELOPMENT PROGRAM AGREEMENT (Chapter 380 Agreement) This Economic Development Program Agreement (this "Agreement ") is made and entered into by and between the City of Southlake, Texas (the "City "), and Carroll /1709, Ltd., a Texas limited partnership, organized under the laws of Texas (the "Developer "). WITNESSETH: WHEREAS, on January 17, 2006, the City adopted Resolution No. 06 -003 establishing an Economic Development Program pursuant to Section 380.001 of the Texas Local Government Code ( "Section 380.001 ") and authorizing this Agreement as part of the Economic Development Program established by City Council Resolution (the "Program "); and WHEREAS, the Developer desires to participate in the Program by entering into this Agreement; and WHEREAS, the City Council of the City of Southlake (the City Council) finds and determines that this Agreement will effectuate the purposes set forth in the Program, and that the Developer's performance of its obligations 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 Resolution of the City Council. 2. Definitions The following definitions shall apply to the terms used in this Agreement: " Valorem Tax Revenues means, with respect to any particular year, the revenues the City receives from the ad valorem property taxes for such year. "City" means the City of Southlake, Texas. " Commercial Space means space utilized for commercial, retail and office uses under the City's Zoning Ordinance. The Shops of Southfake 380 Agreement - Approved February 7, 2006 - Page 1 of 18 " Developer Affiliate means any Person directly or indirectly controlling or controlled by, the Developer, or any Person controlling or controlled by the same Person who is controlling or is controlled by the Developer. As used in this definition," the term "control" means, directly or indirectly, ownership or the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. " Effective Date means the date that all parties have executed this Agreement. " Eligible Costs means the cost of constructing the Park Improvements, inspection fees, and consulting design fees not to exceed one hundred thousand and no /100 dollars ($100,000); provided however, that no fees or expenses incurred by or paid to the Developer or Developer Affiliate shall be eligible for payments as provided in this paragraph. " Force Maieure means any acts of God or the public enemy, war, riot, civil commotion, insurrection, governmental or defacto governmental action, except actions taken by the City pursuant to or permitted by the terms of this Agreement, and except actions taken as a result of acts or omissions of Developer), fire, explosion or flood, and strikes. " Park " means approximately 32,402 square feet of land labeled as Central Park and conceptually shown on Exhibit B attached hereto. " Park Improvements means paving, irrigation system and independent water meter, turf, fountain, benches, shrubs, trees, fountains, sculpture, lighting, trash receptacles, signage, and similar improvements within the public park as described in Section 4 hereof. " Park Improvement Grant means an amount equal to $3 for every $1 of Eligible Costs, not to exceed six hundred thousand and no /100 dollars ($600,000), to be paid by City to Developer as Program Payments, in accordance with Section 5 hereof. " Person " means an individual or a corporation, partnership, trust, estate, unincorporated organization, association, or other entity. " Premises " means that certain tract of real property located in Tarrant County, Texas, as more particularly described on Exhibit A herein. " Program " has the meaning set forth in the recitals to this Agreement. " Program Payment means a payment of the Park Improvement Grant made by the City to Developer pursuant to Section 5 of this Agreement. " Project " means the construction of approximately 215,000 square feet of commercial space in general accordance with the concept plan representation shown on Exhibit B herein, as approved by City Council. The Shops of South lake 380 Agreement - Approved February 7, 2006 - Page 2 of 18 " Related Park Improvements means the Sidewalk, the Southern Buffer tree plantings and irrigation zone design and temporary water meter connection, as described in Section 4 hereof. " Retail Shell Space shall mean space with the exterior envelope constructed but not finished on the inside and not ready for occupancy. " Section 380.001 has the meaning set forth in the recitals to this Agreement. " Sidewalk " means a four (4') foot wide concrete sidewalk from the Southernmost property line of the Premises, at a point connecting to a sidewalk on the Premises, to continue south to connect with Westmont Drive entering Oak Tree Estates. " Southern Buffer means that general area labeled and delineated as the Southern Buffer in Exhibit B attached hereto. " Term " has the meaning set forth in Section 3 of this Agreement. 3. Term This Agreement shall be effective as of the date of execution by all parties and shall terminate upon completion of the Program Payments, save and except the City's obligation noted in Section 5.c regarding provisions for watering the Southern Buffer, unless earlier terminated pursuant to Section 8 . 4. Developer Covenants In consideration of the City's incentives under this Agreement, the Developer agrees [0 a. Plat Execute a final plat approved by the City providing for the dedication of an independently platted lot (i.e. Lot 4) encompassing approximately 32,402 square feet as shown and labeled as Central Park on Exhibit B as a public park and dedicate the lot to the City by Special Warranty deed (the "Deed "), in the form attached as Exhibit C hereof, conveying fee simple title to the City. b. Desiqn Subject to Section 4.c.ii below, the Park Improvements shall be constructed in accordance with the plans and specifications approved by the City Council on February 7, 2006. C. Construction Construct and install, at its cost, all Park Improvements and Related Park Improvements in accordance with the design approved by the City and in compliance with all applicable laws and ordinances, and the following requirements: Developer expressly represents that the bids for the Park The Shops of South lake 380 Agreement - Approved February 7, 2006 - Page 3 of 18 Improvements which have previously been presented to the City were obtained through an arms - length bidding process, that the low bidder was determined by the Developer to be qualified applying reasonable commercial standards generally accepted in the development industry, that the low bidder was selected to perform the work, that the low bidder has no affiliation or common ownership with the Developer or any Developer Affiliate or upstream owners, and that the Developer did not seek or accept any concessions from the low bidder or any other bidder on any other contract, project, or work, including but not limited to the Project generally, in its negotiation and /or bid process with the bidders for the Park Improvements. Any change orders requested during construction must be first approved in writing by the City, such approval not to be unreasonably withheld, conditioned and /or delayed. The City Manager or her designee shall have authority to approve change orders that cumulatively do not exceed twenty five thousand and no /100 dollars ($25,000). All increases in costs due to change orders shall be subject to the City / Developer cost participation ratio of 3:1 and associated obligation for reimbursement. d. Tree Planting Acquire trees of a type and size reasonably agreed by and between the City and the Developer and cause the trees to be planted in accordance with recognized horticultural standards in the Southern Buffer and properly maintain the trees in perpetuity in accordance with such standards; e. Irrigation System Install an automatic irrigation system and temporary water meter isolating the entire Southern Buffer in accordance with City Codes and operate the system in accordance with the recommendations of the City's Landscape Administrator for the Term of this Agreement; f. Sidewalk Construct the Sidewalk concurrently with sidewalks within the Project; g. Easement Prior to beginning construction, execute and record a declaration of easement and restrictive covenants accepted by all parties subject to such declaration for the Premises, granting the City an access and parking easement on the Premises; The form and content shall be in conformance with Exhibit D attached hereto and made a part hereof for all purposes; h. Construct the Project in compliance with all applicable laws and ordinances; Central Market Lease Developer represents that it has an existing Memorandum Lease Agreement with HEB Grocery Company, LP ( "HEB) permitting HEB to open and operate a Central Market specialized grocery store on approximately 65,000 square feet of the Premises, that such lease is for a term in excess of three years, and that Developer has not and will not The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 4 of 18 release HEB from such Lease during the first three years of such term after the City pays the Park Improvement Grant provided for in section 5.a.iii herein. Submit to City, as a condition of payment of any incentive, reasonably detailed evidence of payment of the Eligible Costs for such incentive; this shall include invoices, lien releases from the contractor for each element of construction and other information reasonably requested by the City; and k. Comply with any and all remaining terms and provisions herein. 5. City's Development Program Incentives Subject to Developer's performance of its obligations as required by this Agreement, and subject to the provisions of this Section, to promote local economic development pursuant to the Economic Development Program established by Resolution No. 06 -003, the City shall grant Developer the following incentives: a. The Park Improvement Grant. The City agrees to accept the dedication of an independently platted lot encompassing approximately 32,402 square feet shown as Central Park on the attached Exhibit B as a public park. Upon acceptance by the City, said dedication and Park Improvements shall be deemed to satisfy the full obligation of the park dedication requirements of the City's subdivision ordinance and shall constitute satisfaction of that requirement (including without limitation, satisfaction of any and all park fees and /or other similar fees). Upon acceptance of the Deed, City shall assume all costs for maintenance of the Park; If the plat is filed in the County Plat Records prior to construction, the City hereby agrees to grant the Developer and its contractors full access to the Park for purposes of constructing Park Improvements; and iii. The City, upon completion and acceptance of the Park Improvements, upon Developer's compliance with Section 4 herein, and confirmation by the City that the Developer has constructed a minimum of 80,000 square feet of Retail Shell Space exclusive of Central Market's approximate 65,000 square feet, shall make a lump sum Program Payment of the Park Improvement Grant to the Developer. b. Tree Grant City shall pay Developer a Tree Grant reimbursing it for trees of a size and species reasonably agreed to by the City and the Developer upon their installation in the Southern Buffer and inspection and approval by the City. City shall make a one -time payment to the Developer in an amount The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 5 of 18 equal to Developer's cost, not to exceed six thousand and no /100 ($6,000) dollars; C. Southern Buffer Watering City agrees to provide water for the Southern Buffer for a period to begin upon the installation of plant materials, hydro mulch and /or sod, and to end one year from the issuance of the first Certificate of Occupancy issued within the Project. City agrees to provide Developer a temporary water meter (the "Buffer Sub - meter") at no cost, for its installation isolating the Southern Buffer from the rest of the irrigation system for the Project. The Developer's master water bill shall be reduced monthly by the amount identified by the Buffer Sub - meter. The City shall have no responsibility to provide such water until the Developer installs a permanent underground irrigation system, and the City shall have no other responsibilities, including irrigation system materials or installation, or any vehicular watering systems. City agrees to remove, at is sole cost and expense, the temporary meter and provide reconnection of the irrigation lines upon completion of this incentive period; d. Sidewalk The City shall, upon acceptance of the Sidewalk, reimburse Developer for the cost of construction of the Sidewalk, not to exceed Thirteen Thousand and no /100 Dollars ($13,000); and e. Condition Precedent Notwithstanding any other provisions hereof, City shall not be obligated to make any Program Payment or other payment or grant pursuant to this Agreement unless and until: (1) the Developer is in compliance with the provisions of this Agreement in all material respects and (2) the Ad Valorem Tax Revenues for the City for the year in which the payment is due equal or exceed $10,000,000. 6. Covenants Running with the Land The Developer's covenants, restrictions, burdens, and charges set forth in this Agreement shall exist at all times as long as this Agreement is in effect, and shall be covenants running with the land, binding upon all parties having any right, title or interest in any portion of all the Property. Developer agrees that the City may file a copy of this Agreement in the deed records of Tarrant County, Texas, for the purpose of providing notice regarding these covenants. 7. Default and Termination a. Default If either party should fail to comply with the terms of this Agreement, the party shall have 30 days after delivery of written notice of such default from the other party to cure such default. If the noncompliance is not cured within that period, the non - defaulting party may terminate this Agreement by written notice and shall have no further obligation to the other party; provided that the City shall grant Developer an extension of 30 days to cure the default if Developer demonstrates, to the reasonable satisfaction of the City The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 6 of 18 Council that: the default cannot be cured by the payment of monies and (2) cannot be reasonably cured within 30 days and (3) that Developer is diligently pursuing cure. Notwithstanding the foregoing, in the event either party fails to pay the other party any monetary amounts owing under this Agreement when due, and such failure continues for a period of 30 days after delivery of written notice of such default, then such outstanding amounts shall accrue interest from the date owing until paid at the rate of seven and one half percent (7.5 %) per annum. C. Automatic Termination If the Developer has not received a certificate of occupancy for at least 140,000 square feet of commercial space on the Premises inclusive of an HEB Central Market grocery store or other reasonably comparable "specialty grocer" or major retail anchor, by June 30, 2007, this Agreement shall terminate and the City shall have no obligation hereunder. 8. Audit If requested by the City, Weaver & Tidwell or such other independent accounting firm mutually agreeable to the City and the Developer (the "Auditor") shall audit the Eligible Costs associated with the Park Improvements, and shall determine whether the Developer has properly calculated the Eligible Costs. The conclusion of the Auditor shall be final, binding and conclusive on the City and the Developer and the City's payments shall be adjusted in accordance therewith. 9. Indemnification a. DEVELOPER 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 DEVELOPER 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 ANYWAY TO THE DAMAGE, INJURY, OR OTHER HARM. THE REQUIREMENT OF THE DEVELOPER TO DEFEND THE CITY ALSO UNCONDITIONALLY APPLIES REGARDLESS OF WHETHER OR NOT THE NEGLIGENCE OR FAULT (BUT NOT GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) OF THE CITY OR ITS OFFICERS, AGENTS, OR EMPLOYEES CONTRIBUTES IN ANY WAY TO THE DAMAGE, INJURY, OR OTHER The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 7 of 18 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 Developer and the City and is not intended to create or grant any rights, contractual or otherwise, in or to any other Person. b. No Joint Venture The parties agree 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 Developer's construction or operation of the Project. 10. Miscellaneous Matters a. 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. b. Attorneys Fees The prevailing party in the adjudication of any proceeding relating to this Agreement shall be authorized to recover its reasonable and necessary attorney's fees pursuant to Section 271.159 of the Texas Local Government Code. C. Entire Agreement This Agreement contains the entire agreement between the parties with respect to the transactions contemplated herein. d. Amendment This Agreement may only be amended, altered, or revoked by written instrument signed by the Developer and the City. e. Successors and Assigns This Agreement shall be binding on and inure to the benefit of the parties, their respective successors and assigns. The Developer may assign all or part of its rights and obligations hereunder (a) to any Developer Affiliate effective upon written notice to the City, or (b) to any Person other than a Developer Affiliate with the prior written approval of the City. f. Notice Any notice and /or statement required and permitted to be delivered shall be deemed delivered by hand delivery, 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: Developer: c/o Cencor Realty Services 3102 Maple Ave., Ste. 500 Dallas, TX 75201 Attention: David C. Palmer The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 8 of 18 With a copy to: Jenkens & Gilchrist, P.C. 1445 Ross Avenue, Suite 3200 Dallas, Texas 75202 Attention: Mark R. Vowel[, Esq. City: Mayor City of Southlake 1400 Main Street, Suite 460 Southlake, Texas 76092 With a copy to: Taylor, Olson, Adkins, Sralla & Elam, L.L.P. 6000 Western Place, Suite 200 1 -30 at Bryant -Irvin Road Fort Worth, Texas 76107 Attention: Debra Drayovitch g. 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. h. Applicable Law and Venue This Agreement is made, and shall be construed and interpreted under the laws of the State of Texas and is fully performable in Tarrant County, Texas, and venue of any dispute relating to this Agreement shall lie in Tarrant County, Texas. Counterparts This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. Limitation on Liability Developer agrees that City shall not be liable to Developer or any other party for any special or consequential damages, direct or indirect, punitive damages, interest, or cost of court or expenses related to litigation other than reasonable and necessary attorney's fees, as provided in subsection b. hereof for any act of default by City under this Agreement. k. Representations The Developer represents and warrants to the City that it has the requisite authority to enter into this Agreement. 11. Right to Offset City may, at its option, offset any amounts due and payable to Developer under this Agreement against any debt (including taxes) lawfully due to City from Developer and which are delinquent under applicable law or by agreement, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 9 of 18 whether or not the debt due to City has been reduced to judgment by a court, provided that if Developer is in good faith challenging the validity of any debt, in accordance with applicable laws, the City may not offset unless and until such challenge is finally resolved. 12. Rough Proportionality Developer agrees that all property dedicated to the City and all public facilities constructed pursuant to this Agreement are reasonably necessary to serve the Project and are roughly proportional to the need generated by the subdivision for such land and facilities. Developer acknowledges its right to seek a variance to the dedication and /or construction requirements and that it has voluntarily chosen not to pursue such remedies and waives any claim for a taking of property, or any other constitutional or statutory claim, that it may have under either the Texas or United States Constitutions or statutes. THE CITY OF SOUTHLAKE A Mayor ATTEST: ♦.••� c u r y ° aM CITY SECRETA Y c Carroll /1709, Ltd., a Texas limited partnership By: Carroll /1709 One, L. , a Texas limited liability cgmpany, its General Partner, M Herbert D. Weitzvr;Fn, Manager The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 10 of 18 APPROVED AS TO FORM: THE STATE OF TEXAS § § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Andrew Wambsganss, Mayor of the CITY OF SOUTHLAKE, a municipal corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Southlake and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated.. GIVEN UNDER MY HAND AND SEAL OF OFFICE this � day of F-e6r a.r , 2006. Ono a Notary Public in and for the State of Texas Lori A • Fa cw Q (f op Notary's Printed Name My Commission Expires: b ' U The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 11 of 18 THE STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared Herbert D. Weitzman, Manager of Carroll /1709 One, L.C., a Texas limited liability company, the General Partner of Carroll /1709, Ltd., a Texas limited partnership, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that said instrument was signed on behalf of said entities, in the capacities therein stated, and said Herbert D. Weitzman acknowledged said instrument to be his free act and deed. GLEN UNDER MY HAND AND SEAL OF OFFICE in said County and State this day of R , 2006. E gg WISE Notary Pu I c in and for the State of Texas ate of Texas p. 04 -1 t -2006 Notary's Printed Name My Commission Expires: The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 12 of 18 EXHIBIT A Description of Premises OWNER'S CERTIFICATE STATE OF TEXAS COUNTY OF DALLAS WHEREAS, SOUTH CARROLL /1709, LTD., is the owner of all that certain lot, tract or parcel of land situated in the City of Southlake, Tarrant County, Texas, and being o part of a 29.516 acre tract of land conveyed from W.E. Dalton and wife Dorothy L. Dalton, to South Carroll /1709, LTD. By deed recorded in Volume 13242 at Page 76 of the Deed Records of Tarrant County, Texas, and being more particularly described by metes and bounds as follows; BEGINNING at a 1/2" iron rod found in the South right of way line of East Southlake Boulevard (130 foot right of way) for the Northeast corner of said 29,516 acre tract and also being the Northwest corner of Lot 1R in Block 1 of Garbutt Addition, an addition to the City of Southlake, Texas, according to the plot thereof recorded in Cabinet 'A', Slide 92.10, of the Plat Records of Tarrant County, Texas; THENCE South 0' 13' 20" West along the West line of said Lot 1R in Block 1 of the Garbutt Addition for a distance of 959.70 feet to a 1/2" iron rod found for the the Southeast corner of said 29.516 acre tract and also being the Southwest corner of said Lot 1R in Block 1 of the Garbutt Addition, and being in the North line of Lot 8 in Block 1 of Oak Hill Estates, an addition to the City of Southlake, Texas, according to the plot thereof recorded in Cabinet "A" at Slide 2122 of the Plot Records of Tarrant County, Texas; THENCE North 88' 36' 13" West (Basis of Bearings per deed recorded in Volume 13242 at Page 76 of the Deed Records of Tarrant County, Texas) along the North line of said Oak Hill Estates Addition for a distance of 1317.16 feet to a 5/8" iron rod found in the East right of way line of South Carroll Avenue (54 foot right of way); THENCE North 0' 03` 09" West along he East right of way line of South Carroll Avenue for a distance of 462.54 feet to a 5/8" iron rod set for corner, said point being the beginning of a curve to the left having a central angle of 05' 49' 42" with a radius of 635.00 feet and a chord bearing North 02' 57' 58" West at a distance of 84.90 feet; THENCE Northwesterly along said curve to the left and continuing along the East right of way line of said South Carroll Avenue for a distance of 84.94 feet to a 5/8" iron rod set for corner and being the beginning of a curve to the right having a central angle of 03' 45.' 22" with a radius of 765.00 feet and a chord bearing North 04' 00' 08" West at a distance of 50.14 feet; THENCE Northwesterly along said curve to the left and continuing to follow along the East right of way line of said South Carroll Avenue for a distance of 50.15 feet to a 5/8" iron rod set for corner; THENCE North 0' 03' 09" West and continuing along the East right of way line of said South Carroll Avenue for a distance of 352.01 feet to a 5/8 iron rod set for the cutoff line for the aforesaid East Southake Boulevard; THENCE North 45' 38' 51" East along said cutoff line for East Southlake Boulevard for a distance of 13.96 feet to a 5/8" iron rod set for corner in the South right of way line of East Southake Boulevard; THENCE South 88' 37' 53" East along the South right of way line of -said East Southlake Boulevard for a distance of 1319..52 feet to the POINT OF BEGINNING AND CONTAINING 29.1276 ACRES OF LAND, more or less. The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 13 of 18 EXHIBIT B Concept Plan and Southern Buffer The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 14 of 18 EXHIBIT C Special Warranty Deed for Park Date: , 200_ Grantor: Carroll /1709, Ltd. 3102 Maple Ave., Suite 500 Dallas, TX 75201 Dallas County, Texas 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_, Lot_, The Shops of Southlake Addition, an addition to the City of Southlake, Tarrant County, Texas, pursuant to the Plat approved by the City of Southlake for Case No. ZA05- , , 2005 [NOTE: Description to be adjusted at time of conveyance] Reservations from and Exceptions to Conveyance and Warranty: See Exhibit `A' attached hereto and made a part hereof for all purposes. Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty set forth on Exhibit `A' attached hereto, 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 successors and assigns, and 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 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. The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 15 of 18 GRANTOR: Carroll /1709, Ltd., a Texas limited partnership By: Carroll /1709 One, L.C., a Texas limited liability company, its General Partner Herbert D. Weitzman, Manager THE STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared Herbert D. Weitzman, Manager of Carroll /1709 One, L.C., a Texas limited liability company, the General Partner of Carroll /1709, Ltd., a Texas limited partnership, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that said instrument was signed on behalf of said entities, in the capacities therein stated, and said Herbert D. Weitzman acknowledged said instrument to be his free act and deed. GIVEN UNDER MY HAND AND SEAL OF OFFICE in said County and State this day of , 2006. Notary Public in and for the State of Texas Notary's Printed Name My Commission Expires: AFTER RECORDING RETURN TO: Ms. Lori Farwell City Secretary City of Southlake 1400 Main Street, Suite 270 Southlake, Texas 76092 The Shops of Southlake 380 Agreement - Approved February 7, 2006 - Page 16 of 18 EXHIBIT "A" TO SPECIAL WARRANTY DEED Permitted Exceptions Reservation of all rights and interest in and to all oil, gas and other minerals in and under the property as described in Deed executed by Walter J. Rusek to M.L. Dalton and W.E. Dalton, dated September 5, 1980, filed September 8, 1980, recorded in Volume 6992, Page 719, Deed Records, Tarrant County, Texas, as noted on survey by David Petree, R.P.L.S. 1890, dated January 7, 2005, last revised July 14, 2005, last revised September 7, 2005. 2. City of Southlake Permanent Waterline Easement executed by and between W.E. Dalton and Dorothy H. Dalton and the City of Southlake, dated February 19, 1997, filed March 26, 1997, recorded in Volume 12712, Page 1651, Deed Records, Tarrant County, Texas, as shown on survey by David Petree, R.P.L.S. 1890, dated January 7, 2005, last revised July 14, 2005, last revised September 7, 2005. 3. Airport Zoning Ordinance dated December 16,1971, a certified copy of which is recorded in 7349 / 1106, Real Property Records of Tarrant County, Texas. 4. Terms, conditions and stipulations contained in Reciprocal Easement executed by and between Cambridge - Southlake Partners, L.P. and South Carroll/1709, Ltd., dated January 20, 2004, filed February 4, 2004, recorded in County Clerk's File No. 37687, Deed Records, Tarrant County, Texas, as noted on survey by David Petree, R.P.L.S. 1890, dated January 7, 2005, last revised July 14, 2005, last revised September 7, 2005. The Shops of South lake 380 Agreement - Approved February 7, 2006 - Page 17 of 18 EXHIBIT D Declaration of Easement and Restrictive Covenants To be executed at time of deed transfer of the Park Property to the City. The Shops of South/ake 380 Agreement - Approved February 7, 2006 - Page 18 of 18