Item 8ACITY OF
SOUTHLAKE
MEMORANDUM
(October 21, 2014)
To: Shana Yelverton, City Manager
From: Shannon Hamons, CEcD, Director of Economic Development
and Tourism
Subject: Item 8A: Resolution 14-043, a resolution of the City of Southlake,
Texas, approving the terms and conditions of a program to promote
economic development and stimulate business and commercial
activity in the City; authorizing the Mayor to execute an agreement
with 925 South Kimball, LLC, a limited liability corporation, for such
purposes; and providing an effective date
Action
Requested: Approve a Resolution 14-043 as noted above
Background
Information: City Council approved the 925 South Kimball development plan on
March 18, 2014. The approved plan depicts two industrial/office
buildings totaling approximately 50,000 square feet and when
complete, will be named "Stadium Southwest".
Approval of the plan was granted with a stipulation related to cost
sharing of the construction of a traffic signal at South
Kimball/Continental Boulevard/development entrance. At that
meeting, staff presented a cost -sharing arrangement that
recommended the applicant assume responsibility for the lesser of
25% of the total construction costs or $50,000 with the City
assuming the remaining 75%. These ratios were recommended
based on the usage of the 4-leg signal. The applicant's
development uses one leg (25% of that signal). However, when the
motion was made, the ratios were reversed, assigning the 25% to
the City. Approval of this item will establish the staff -recommended
ratios that were presented previously.
The proposed agreement stipulates that the developer, 925 South
Kimball, LLC, will construct the traffic signal to City -approved
specifications and fund the lesser of 25% or $50,000 of the total
cost of the project.
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According to state statute, in partnership situations where a City's
participation exceeds 30% of the total project cost, cities must enter
into a Chapter 380 Agreement to establish the terms of each party's
participation. These terms are also reflected in the Commercial
Developer's Agreement that has been placed for Council's
consideration as Item 8B.
Financial
Considerations: Funding for the City's costs for a signal at this location was
approved in the FY 2014 Capital Budget in the amount of $200,000
out of the Red Light Camera Fund. Current construction cost
estimates are being finalized; however staff expects the City's
portion to remain well within budgeted amounts.
Strategic Link: The item links to the city's strategy map relative to focus areas of
Infrastructure and Quality Development. The specific corporate
objectives that are met by this signal installation project are, to
invest to provide and maintain high quality public assets,
collaborate with select partners to implement service solutions, and
attract and keep businesses to drive a dynamic and sustainable
economic environment. The critical business outcome is to
optimize resources through collaboration and partnerships to
reduce costs and add service value.
Citizen Input/
Board Review: N/A
Legal Review: This resolution and accompanying incentive agreement has been
reviewed by legal counsel as to the appropriate Chapter 380 form
as outlined by the State of Texas
Alternatives: 1. Approve the Resolution as submitted
2. Approve the Resolution with amendments
3. Take no action on the Resolution.
Supporting
Documents: Resolution 14-043
Agreement
Location Map
Staff
Recommendation: Approve Resolution 14-043 as submitted.
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Staff Contact: Shannon Hamons, Director of Economic Development & Tourism
Robert H. Price, P.E., Public Works Director
Cheryl Taylor, P.E., Deputy Director Public Works/City Engineer
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RESOLUTION NO. No. 14-043
A R®OLU TI ON OF THE CITY OF SOU T HLAFIQE, T B(ASs APPROVING THE TERM SAND CONDITIONS
OF A PROGRAM TO PROMOTE ECONOMIC DEVELDPMENT AND STIMULATE BUSINESS AND
COMMERaALACTIVITY IN THE CITY; AUTHORIZING THE MAYOR TO B(BCUTE AN AMENDED
AGREEM ENT WITH 925 SOUTH 11,11M BALL, LLC, A TB(AS UM ITED UABIUTY CORPORATION, FOR
SUCH PURPOSE.Sy AND PROVIDINGAN BFf-BC."IIVEDATE
WHEREAS Chapter 380 of the Texas Local Government Code authorizes municipalities to establish and
provide for the administration of programs that promote economic development and stimulate business and
commercial activity in the City; and
WHEREAS; On October, 21, 2014 the City Council approved a Chapter 380 Agreement (the "Agreement")
by and between the City of SDuthlake and 925 SDuth Nmball, LLQ a Texas Limited Liability Corporation, to promote
economic development and stimulate business and commercial activity in the City; and
WHEREAS the City Council has been presented with a proposed Agreement — by and between the City of
SDuthlake and 925 SDuth Kmball, LLC, a copy of which is attached hereto as Exhibit "A" and incorporated herein
by reference (hereinafter called the Agreement); and
WHEREAS upon full review and consideration of the Agreement and all matters attendant and related
thereto, the City Council is of the opinion that the Agreement will assist in implementing a program whereby
economic development will be promoted and business and commercial activity will be stimulated in the City.
NOW, THH EFORE, BEITRESOLVED BY THE CITYCOUNCILOFTHE CITYOFSOUTHLAF1F, TB(ASy THAT -
SECTION 1.
The City Council finds that the terms of the Agreement will promote economic development and
stimulate business and commercial activity in the City and otherwise meet the criteria of Section 380.001 of the
Texas Local Government Code.
L_=1111
The City CAuncil hereby adopts amendments to the economic development program
whereby the City of SDuthlake will make economic development program payments to 925
mouth Kimball, LLC, and take other specified actions, in accordance with the terms outlined in
the Agreement.
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SECTION 3.
The terms and conditions of the Agreement having been reviewed by the Oty Council of the Oty of
SDuthlake and found to be acceptable and in the best interest of the City and its citizens, are hereby approved.
SECTION 4.
The Mayor is hereby authorized to execute the Agreement and all other documents in connection
therewith on behalf of the Oty substantially according to the terms and conditions set forth in the Agreement.
SECTION 5.
This Fbsolution shall become effective from and after its passage.
PASS®ANDAPPROVED this the day of , 2014
,bhn Terrell, Mayor
Lorie Payne, TRV1C
Oty Secretary
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BCHI BIT A
Chapter 380 Agreement
CITY OF SOUTHLAKE, TEXAS
AND
925 SOUTH KIMBALL, LLC
CHAPTER 380 ECONOMIC DEVELOPMENT
PROGRAM AGREEMENT
This CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT is
made and entered into by and between the City of Southlake, Texas, a Texas home rule
municipality ("City"), and 925 South Kimball, LLC ("Company"). City and Company may
sometimes hereafter be referred to individually as a "Party" and collectively as the "Parties."
WHEREAS, Company desires to build a 49,000 square feet development for office/flex
industrial space at 925 South Kimball Avenue, also known as Lot 2-R-2, Green Meadow
Subdivision, an Addition to the City of Southlake, Texas ("Development"); and
WHEREAS, Company has applied to City for financial assistance to build the
Development in the City; and
WHEREAS, the City desires to provide, pursuant to Chapter 380 of the Texas Local
Government Code ("Chapter 380"), an incentive to Company for the construction of the
Development and Traffic Signals at the entrance of the Development; and
WHEREAS, the City has the authority under Article 52-a of the Texas Constitution and
Chapter 380 to make loans or grants of public funds for the purposes of promoting local
economic development and stimulating business and commercial activity within the City; and
WHEREAS, the City has determined that a grant of funds to the Company will serve the
public purpose of promoting local economic development, and stimulating business and
commercial activity within the City.
NOW THEREFORE, for and in consideration of the agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
SECTION 1.
FINDINGS INCORPORATED
The foregoing recitals are hereby incorporated into the body of this Agreement and shall
be considered part of the mutual covenants, consideration and promises that bind the Parties.
SECTION 2.
PROGRAM APPROVED
A program authorized under Chapter 380 is hereby established to bring the Development,
including the Traffic Signals, to the City. The terms of this Agreement shall implement the
program.
SECTION 3.
TERM
This Agreement shall be effective as of the Effective Date and shall terminate when the
Program Grants are paid in full, unless terminated earlier pursuant to the terms of this
Agreement.
SECTION 4.
DEFINITIONS
The following words shall have the following meanings when used in this Agreement:
The terms "Agreement," "C�," "Company,' and "Development" shall have the
meanings provided above.
"Certificate of Occupancy" means the certificate issued by City's building official
reflecting that construction has been completed in conformance with appropriate City codes and
the owners are authorized to secure full utility service and to permit commercial occupancy of
the building.
"Commencement of Construction" means that: (i) the plans have been prepared and all
approvals thereof and permits with respect thereto required by applicable governmental
authorities have been obtained for construction of the Traffic Signals; and (ii) grading of the land
on which the Traffic Signals are to be located has commenced or the installation of the Traffic
Signals has commenced.
"Construction Costs" means the cost of design and construction document preparation,
and construction and installation of Traffic Signals, site grading and such other reasonable
industry -standard costs.
"Effective Date" means the date this Agreement is signed by both Parties.
"Event of Default" means and includes any of the Events of Default set forth below in
the section entitled "Events of Default."
"Inspection and Final Acceptance" means the process by which the City reviews the
completed construction of the Traffic Signals to determine the validity and quality of the work
performed, to be subsequently owned, operated and maintained by the City; acknowledged by
the City through an issuance of a final acceptance letter to the Company stating the Traffic
Signals have been completed according to City standards.
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"Program Grant" or "Program Grant Pam" means the economic development grants
paid by the City to Company in accordance with this Agreement.
"Term" means the term of this Agreement as specified in Section 3 of this Agreement.
"Traffic Signals" means the traffic signals, including signal heads, poles, mast arms,
illuminated street name signs, battery backup, pavement markings, opticom emergency
preemption device, and all other appurtenances related to the traffic signals, that Company will
install at the intersection of 925 South Kimball Avenue and Continental Boulevard, as shown on
the attached Exhibit A.
SECTION 5.
OBLIGATIONS OF COMPANY
Company covenants and agrees with the City that, while this Agreement is in effect, it
shall comply with the following terms and conditions:
(a) Construction Standards. Company agrees to install the Traffic Signals in compliance
with the attached Exhibit A, and in compliance with all applicable local, state, and federal
regulations, including the Manual on Uniform Traffic Control Devices, and acquiring all
necessary permits and obtaining all required approvals.
(b) Commencement of Construction. Company agrees Commencement of Construction will
occur on or before February 1, 2015.
(c) Time of Completion. The Traffic Signals must be constructed and installed prior to or
concurrently with the construction of the Development. Inspection and Final Acceptance
of the Traffic Signals must occur prior to issuance of any Certificate of Occupancy for
any portion of the Development.
(d) Construction Costs. Company agrees that it will be solely responsible for paying all
Construction Costs prior to receiving the Program Grant Payment.
(e) Performance. Company agrees to perform and comply with all terms, conditions, and
provisions set forth in this Agreement and in all other instruments and agreements
between Company and City, and any related agreements between Company and City.
(f) Access to Information. Company agrees to provide the City, upon reasonable notice,
access to information related to the Traffic Signals, and access to information necessary
to fulfill this Agreement, throughout the term of this Agreement.
(g) Undocumented Workers. Company certifies that Company does not and will not
knowingly employ an undocumented worker in accordance with Chapter 2264 of the
Texas Government Code, as amended. If during the Term of this Agreement, Company
is convicted of a violation under 8 U.S.C. § 1324a(f), Company shall repay the amount of
the public subsidy provided under this Agreement plus interest, at the rate of the prime
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rate plus two percent (6%) per annum, not later than the 120th day after the date the City
notifies Company of the violation.
SECTION 6.
OBLIGATIONS OF CITY
City covenants and agrees that, while this Agreement is in effect, it shall comply with the
following terms and conditions and make the following Program Grants, provided Company is in
full compliance with the terms and conditions of this Agreement:
(a) Program Grant Pam No later than 90 days after Inspection and Final Acceptance
of the Traffic Signals, and provided Company has first submitted a written request for payment,
including sufficient documentation of Construction Costs, City will pay Company a Program
Grant Payment in an amount equal to the difference between the total Construction Costs and the
lesser of. (1) 25% of the Construction Costs; or (2) $50,000.
SECTION 7.
EVENTS OF DEFAULT
Each of the following shall constitute an Event of Default under this Agreement:
(a) Default. Failure of Company or City to comply with or to perform any other term,
obligation, covenant or condition contained in this Agreement or in any related
documents, or failure of Company or City to comply with or to perform any other term,
obligation, covenant or condition contained in any other agreement between the City and
Company, and Company or City fails to cure such failure within thirty (30) days after
written notice from the City or Company, as the case may be, describing such failure, or
if such failure cannot be cured within such thirty (30) day period in the exercise of all due
diligence, then if Company or City fails to commence such cure within such thirty (30)
day period or fails to continuously thereafter diligently prosecute the cure of such failure.
(b) False Statements. Any written warranty, representation or statement made or furnished to
the receiving Party under this Agreement or any document(s) related hereto furnished to the
receiving Party is/are false or misleading in any material respect, either now or at the time
made or furnished, and the furnishing Party fails to cure same within thirty (30) days after
written notice from the receiving Party describing the violation, or if such violation cannot
be cured within such thirty (30) day period in the exercise of all due diligence, then if the
furnishing Party fails to commence such cure within such thirty (30) day period or fails to
continuously thereafter diligently prosecute the cure of such violation, or if the furnishing
Party obtains actual knowledge that any such warranty, representation or statement has
become false or misleading after the time that it was made, and the furnishing Party fails to
provide written notice to the receiving Party of the false or misleading nature of such
warranty, representation or statement within ten (10) days after the furnishing Party learns of
its false or misleading nature.
(c) Insolvency. The dissolution or termination of Company's existence as a going business or
concern, Company's insolvency, appointment of receiver for any part of Company's
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property, any assignment of all or substantially all of the assets of Company for the benefit
of creditors of Company, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Company unless, in the case of involuntary proceedings, such
proceedings are discharged within sixty (60) days after filing.
SECTION 8.
EFFECT OF AN EVENT OF DEFAULT
(a) General Defaults. In the event of default under this Agreement, including without
limitation, Section 7 above, the non -defaulting Party shall give written notice to the
defaulting Party of any default, and the defaulting Party shall have thirty (30) days to cure
said default. Should said default remain uncured as of the last day of the applicable cure
period and the non -defaulting Party is not otherwise in default, the non -defaulting Party
shall have the right to immediately terminate this Agreement. In the event the City
terminates this Agreement as a result of the foregoing, it will have no further obligation
to make any remaining Program Grant Payments. Additionally, Company will owe City
repayment of the previous Program Grant Payments made to Company, plus interest at
the rate of the prime rate per annum. Company shall pay such funds to City within sixty
(60) days of termination.
SECTION 9.
NHSCELLANEOUS PROVISIONS
The following miscellaneous provisions are a part of this Agreement:
(a) Amendments. At any time, City and Company may determine that this Agreement should
be amended for the mutual benefit of the Parties, or for any other reason, including an
amendment to induce Company to maintain its operations in the City when this
Agreement could otherwise be terminated. City and Company agree to consider
reasonable requests for amendments to this Agreement which may be made by any of the
Parties hereto, lending institutions, bond counsel or financial consultants. Any
amendments to this Agreement must be in writing and signed by the appropriate
authorities of both City and Company.
(b) Applicable Law and Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Texas, and all obligations of the parties created
hereunder are performable in Tarrant County, Texas. Venue for any action arising under
this Agreement shall lie in the state district courts of Tarrant County, Texas.
(c) Assignment. This Agreement may not be assigned without the express written consent of
the other Party.
(d) Binding Obligation. This Agreement shall become a binding obligation on the signatories
upon execution by all signatories hereto. City warrants and represents that the individual
executing this Agreement on behalf of City has full authority to execute this Agreement
and bind City to the same. Company warrants and represents that the individual executing
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this Agreement on Company's behalf has full authority to execute this Agreement and
bind it to the same.
(e) Caption Headings. Caption headings in this Agreement are for convenience purposes
only and are not to be used to interpret or define the provisions of the Agreement.
(f) Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which shall constitute one and the same
document.
(g) Entire Agreement. This Agreement constitutes the entire understanding and agreement of
the Parties as to the matters set forth in this Agreement. No other understanding, oral or
otherwise, in direct conflict with this Agreement shall be deemed to exist or to bind any
of the Parties hereto. All prior written or oral offers, counteroffers, memoranda of
understanding, proposals and the like are superseded by this Agreement. No alteration of
or amendment to this Agreement shall be effective unless given in writing and signed by
the Party or Parties sought to be charged or bound by the alteration or amendment.
Neither Party is relying on any statement, representation, nor warranty of the other Party
not expressly set out in this Agreement. Each of the undersigned authorized
representatives of the Parties warrants and represents and does hereby state and represent
that no promise or agreement which is not herein expressed has been made to him or her
in executing this Agreement, and that none of them are relying upon any statement or
representation of any agent of the Parties. Each Party is relying on its own judgment and
each Party has been represented by independent counsel its choosing. This Agreement
shall not be construed against the drafter hereof, but shall be construed as if all Parties
drafted the same.
(h) Force Majeure. It is expressly understood and agreed by the Parties to this Agreement
that if the performance of any obligations hereunder is delayed by reason of war, civil
commotion, acts of God, inclement weather, fire or other casualty, or court injunction, the
Party so obligated or permitted shall be excused from doing or performing the same
during such period of delay, so that the time period applicable to such obligation or
requirement shall be extended for a period of time equal to the period such Party was
delayed.
(i) Further Acts and Releases. City and Company each agrees to take such additional acts
and execute such other documents as may be reasonable and necessary in the
performance of their obligations hereunder.
(j) Governmental Powers, Waiver of Immunity. By execution of this Agreement, the City
does not waive or surrender any of its governmental powers, immunities or rights.
(k) No Third Party Beneficiaries. The performance of the respective obligations of City and
Company under this Agreement are not intended to benefit any party other than City or
Company, except as expressly provided otherwise herein. No person or entity not a
signatory to this Agreement shall have any rights or causes of action against any Party to
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this Agreement as a result of that Party's performance or non-performance under this
Agreement, except as expressly provided otherwise herein.
(1) Notices. Any notice or other communication required or permitted by this Agreement
(hereinafter referred to as the "Notice") is effective when in writing and (i) personally
delivered either by facsimile (with electronic information and a mailed copy to follow)
or by hand or (ii) three (3) days after notice is deposited with the U.S. Postal Service,
postage prepaid, certified with return receipt requested, and addressed as follows:
if to Company: 925 South Kimball, LLC
5815 Elderwood, Dr.
Dallas, TX 75039
Attention: Daniel Anderson
if to City: City of Southlake, Texas
1400 Main Street, Suite 460
Southlake, Texas 76092
Attention: Mayor
With a copy to: Taylor, Olson, Adkins, Sralla & Elam, LLP
6000 Western Place, Suite 200
I-30 at Bryant -Irvin Road
Fort Worth, Texas 76107
Attention: Drew Larkin
(m) Right of Offset. The City may at its option, offset any amounts due and payable under
this Agreement against any debt (including taxes) lawfully due and owing to the City
from the Company, regardless of whether the amount due arises pursuant to the terms
of this Agreement or otherwise, and regardless of whether or not the debt has been
reduced to judgment by a court.
(n) Relationship of Parties. The Parties shall not be deemed in a relationship of partners or
joint ventures by virtue of this Agreement, nor shall either Party be an agent,
representative, trustee or fiduciary of the other. Neither Party shall have any authority to
bind the other to any agreement.
(o) Severability. City and Company declare that the provisions of this Agreement are
severable. If it is determined by a court of competent jurisdiction that any term,
condition or provision hereof is void, voidable, or unenforceable for any reason
whatsoever, then such term, condition or provision shall be severed from this Agreement
and the remainder of the Agreement enforced in accordance with its terms.
(p) COMPANY 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,
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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 COMPANY OR
ITS AGENTS, EMPLOYEES, OR CONTRACTORS, ARISING OUT OF THE
PERFORMANCE OF THIS AGREEMENT. COMPANY'S OBLIGATIONS
UNDER THIS SECTION WILL SURVIVE THE TERM OF THIS AGREEMENT.
IN WITNESS WHEREOF, the City and 925 SOUTH KIMBALL, LLC, have executed this
Agreement as of the day of 52014.
ATTEST
Lori Payne, TRMC
CITY SECRETARY
APPROVED AS TO FORM:
CITY ATTORNEY
THE CITY OF SOUTHLAKE
John Terrell, Mayor
925 SOUTH KIMBALL, LLC,
a Texas limited liability company
Name:
Its:
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Exhibit A
The Traffic Signals
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