01-14-19 Regular Meeting of the La Porte City Council

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particularly described ill Exhibit A (tile "Project" herein) and the location of DEVELOPER'S tracts is more particularly described in Exhibit B (the "Property" herein). Construction of the said buildings is estimated to occur over a six (6) year period with a total minimum capital investment by DEVELOPER of at least $12,000,000.00. 12 As a precondition to implementation of the Project, DEVELOPER determined that it was necessary to close, vacate and abandon portions of the existing rights -of -way within Sector 23 between West Main Street, SH 146, West Fairmont Parkway, and North 16 1h Street (the "Rights -of Way" herein), which currently separates DEVELOPER'S tracts, in order to consolidate said tracts and thereafter construct street access along West F Street, 14'h Street, and West E Street (see Exhibit Q to facilitate the construction and development of the proposed Project. 1.3 DEVELOPER completed applications and received approval of the City Council to close, vacate and abandon the Rights of Way pursuant to Chapter 62, Article 11 of CITY's Code of Ordinances, more fully described in Exhibit D. 1.4. DEVELOPER has paid CITY $362,457.94 for Rights of Way closure described in Section 13 above. 1.5 In exchange for development of the Project, and attainment of certain performance standards upon completion of the Project, as more fully described herein, DEVELOPER seeks CITY's agreement to reimburse DEVELOPER for payment of fair market value as required under Chapter 62 of aws Code of Ordinances, for construction of West F Street, 10' Street, and West E Street. 2.1 CITY agrees to reimburse DEVELOPER in an amount not to exceed the payment of fair market value received by CITY for closure of Rights -of -Way paid by DEVELOPER, as a grant in accordance with this Agreement and as allowed by Texas Local Government Code 380, as an inducement to DEVELOPER to complete the Project. However, as provided in Section 3 of this Agreement, CITY'S agreement to reimburse DEVELOPER is conditioned on DEVELOPER's obligation to attain certain specified performance benchmarks in connection with the Project. The failure of DEVELOPER to satisfy the specified performance benchmarks shall provide CITY the right to forfeit such reimbursement and to be forever released from any obligation to make such reimbursement, 2.2 Payments to DEVELOPER shall occur in based on and in accordance with requirements outlined in Section 3 for completed construction of buildings within the Property, as described in Exhibit B. The DEVELOPER shall submit proof of Certificate of Occupancy and documentation of capital investment for each building as completed. The capital investment for each building relative to the total capital investment amount will determine the payment amount for each submitted reimbursement request. a. Individual reimbursement requests shall be pro -rated based on a total incentive amount not to exceed $362,457.94. b. In no case will reimbursement be made if a copy of the Certificate of Occupancy and documentation of capital investment is not submitted to the CITY by March 27, 2023. c. In the case that proof of Certificate of Occupancy and documentation of' capital investment are received on or before March 27, 2023, the CITY shall convene a meeting of