HomeMy WebLinkAboutO-2007-2997
E
REQUEST FOR CITY COUNCIL AGENDA ITEM
Requested By:
Appropriation
Agenda Date Requested: June 11 2007
ce of Funds:
Department:
Parks & Recreation
Acc't Number:
N/A
Report: _Resolution: _Ordinance: -L
Amount Budgeted:
N/A
Exhibits:
Ordinance
Agreement
Requested:
N/A
Exhibits:
Bud eted Item:
YES
NO
Exhibits:
SUMMARY & RECOMMENDATION
As was discussed with City Council previously, the developer of the property adjacent to the City owned
West Side Park property, Tri-City Holdings, L.P., has agreed to more forward with an agreement with the City of La
Porte. The agreement calls for the purchase of detention credits from the City that will be provided during the design
of the lake amenity for the proposed park. The developer also has agreed to deed up to 1.5 acres of land to the city to
increase the size of the detention lake at the site. The city will then give the developer a letter for tax purposes for the
value of the donated land
Staff has researched the market value of the detention credits and arrived at a figure of
$11,000 per acre foot of detention. The property will require 11.86 acre feet of detention which equals
$130,460, to be paid to the City of La Porte in 4 equal installments over the next year. The Tri-City
Holdings, L.P. architect will work with the City's architect to incorporate the additional acreage into
the park project that is to be donated to the City as a part of this agreement. The detention credit fees
can then be applied to the funds for design and construction of the new park.
Staff recommends approval of an Ordinance approving and authorizing an agreement between the
City of La Porte and Tri-City Holdings, L.P. to convey land and funding to the City of La Porte in exchange
for services provided according to the terms of the agreement.
Action Required by Council:
Consider an Ordinance approving and authorizing an agreement between the City of La Porte and
Tri-City Holdings, L.P., for conveyance of land and payment of detention credits to the City of La Porte for
floodwater detention purposes and provision of services to Tri-City Holdings, L.P. according to the terms of
the agreement.
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(D e
ORDINANCE NO. 2007- ;( qq7
AN ORDINANCE APPROVING AND AlITHORIZING A DEVELOPER'S
AGREEMENT BElWEEN THE CITY OF LA PORTE AND TRI-CITY HOLDINGS,
L.P., FOR CONVEYANCE OF LAND AND PAYMENT OF DETENTION CREDITS
TO THE CITY OF LA PORTE FOR FLOODWATER DETENTION PURPOSES,
AND PROVISION OF SERVICES TO TRI-CITY HOLDINGS, L.P. BY CITY OF LA
PORTE, ACCORDING TO THE TERMS OF THE AGREEMENT PROVIDED;
MAKING VARIOUS FINDINGS AND PROVISIONS REIATING TO THE
SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW;
PROVIDING AN EFFECTIVE DATE HEREOF.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby approves and authorizes the contract,
agreement, or other undertaking described in the title of this ordinance, a copy of which is
on file in the office of the City Secretary. The City Manager is hereby authorized to execute
such document and all related documents on behalf of the City of La Porte. The City
Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City
to all such documents.
Section 2. The City Council officially finds, determines, recites, and declares that a
sufficient written notice of the date, hour, place, and subject of this meeting of the City
Council was posted at a place convenient to the public at the City Hall of the City for the
time required by law preceding this meeting, as required by the Open Meetings Law,
Chapter 551, Texas Government Code; and that this meeting has been open to the public as
required by law at all times during which this ordinance and the subject matter thereof has
been discussed, considered and formally acted upon. The City Council further ratifies,
approves, and confirms such written notice and the contents and posting thereof.
Section 3. This Ordinance shall be effective from and after its passage and
Page 1 Of2
approval, and it is so ordered.
PASSED AND APPROVED, this 11TH day of JUNE, 2007.
By:
ATTEST:
ffI()uJ)~ Aitt!/
Martha Gillett,
City Secretary
APPROVED AS TO FORM:
~ T fhL1
Clark T. Askins,
Assistant City Attorney
Page 2 Of2
CITY OF LA PORTE
~L?~
Alton E. Porter,
Mayor
DEVELOPER'S AGREEMENT BETWEEN CITY OF LA PORTE, TEXAS
AND TRI-CITY HOLDINGS, L.P.
THIS AGREEMENT (this "Agreement") is entered into as of the lltfday of June, 2007,
by and among the CITY OF LA PORTE, TEXAS ("La Porte"), a municipal corporation, and
TRI-CITY Holdings, L.P. ("Tri-City"), a Delaware limited partnership.
RECITALS
City is the owner of (i) tracts of land containing 33.644 acres in La Porte, Texas
described on Exhibit "A" attached hereto and commonly referred to as the Westside Park
Property ("Park Land", herein).
Tri-City is the owner or authorized agent for the owners of (i) several tracts of land
containing approximately 50.0707 acres in La Porte, Texas described on Exhibit "B" attached
hereto ("Tri-City Development Property", herein) and which includes (ii) land which constitutes
a part of TR 71 0, and which is estimated to be approximately 1.5 acres in size, La Porte Outlots,
as recorded in Volume 83, Page 344, of the Deed Records of Harris County, William M. Jones
Survey, Abstract 482, La Porte, Harris County, Texas, and which the parties contemplate to
survey and subsequently transfer to La Porte for drainage purposes, as provided below, and
which land shall be referred to herein as "Proposed Detention Basin".
La Porte and Tri-City desire to enter into this Agreement to evidence the following:
(a) Tri-City to convey the tract identified as the Proposed Detention Basin, the
dimensions of which shall be determined by the parties pursuant to Paragraph 5 of
this Agreement, and at which time a metes and bounds legal description of which
shall be annexed hereto as Exhibit "C". Said Proposed Detention Basin shall
become a part of the proposed detention flake amenity and maintenance berm on
the Park Property. Said Proposed Detention Basin shall be conveyed to the La
Porte by general or special warrant deed, free and clear of all liens and
encumbrances, and shall become a part of the Park Land, to allow for detention
for the Tri-City Development Property and a part of the proposed lake amenity. In
exchange for the conveyance of the Proposed Detention Basin, La Porte shall
issue a Declaration of Gift to the City for Tax Purposes to Tri-City; and
(b) Tri-City to purchase detention credits from the City of La Porte in an amount
determined by the City Engineer/Flood Plain Manager for the Tri-City
Development Property, at the determined market value of such detention credits
as described herein; and
(c) La Porte to provide a public detention/lake amenity to the Park Land as a part of
the Park Land development with the capability of providing said detention
capability.
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AGREEMENTS
1. Definitions. The following terms, when used herein, shall have the following meanings:
"La Porte Detention Credits" means the purchase price and/or amounts payable in respect
of the fair market value of detention capacity, measured in acre/feet, as determined by a
qualified Professional Engineer, and any other fees and charges payable to La Porte or its
contractors or vendors in connection with provision of detention capacity, absent
conveyance, by La Porte.
"Architect" means the architect(s) engaged by La Porte to design the contemplated
improvements and development of the Park Land, and engaged by Tri-City to design the
contemplated improvements and development of the Tri-City Holdings, L.P.
Development Property, respectively.
"Park Land Improvements" means the improvements to the Park Land described and
contemplated by La Porte. The Park Land Improvement Plans will be prepared at the
direction of La Porte and at its cost and expense.
"Tri-City Development Improvements" means the improvements to the Tri-City
Development Property described and contemplated by Tri-City. The Tri-Cites
Development Improvement Plans will be prepared at the direction of Tri-City and at his
cost and expense.
2. Property Development. Nothing in this Agreement shall preclude Tri-City from meeting
the requirements and procedures of La Porte's Development Ordinance, other governing
Ordinances or other statutes, rules and regulations governing commercial development in
La Porte.
3. Assessment of Detention Credits to La Porte. The City Engineer of La Porte has
determined that the 50.0707 acres of developable property will require 11.86 acre/feet of
detention capacity to meet the requirements of the La Porte Drainage Criteria. The fair
market value of detention credits, minus conveyance, is $11,000 per acre/foot. The total
cost to Tri-City for detention capacity to be provided by La Porte, is $130,460.00 The
detention credit cost of $130,460.00 shall constitute a one time assessment by the City of
La Porte, to satisfy detention capacity for the proposed 50.0707 acre Tri-City
Development Improvements. However, said assessment shall not satisfy necessary
detention credit requirements should additional acreage adjacent to the proposed Tri-City
Development Improvements be developed.
4. Payment of Detention Credits to La Porte. Within sixty (60) days following the
execution of this Agreement, Tri-City Holdings, L.P. shall remit to La Porte the amount
of $32,615.50, an amount equal to twenty-five percent (25%) of the value of the
detention credits as described in Paragraph 3 above, with an additional 25% due at ninety
(90) day increments thereafter, until the amount is remitted in full. La Porte shall have the
right to withhold any and all building permits from Tri-City as part of the Tri-City
Development Improvements project, upon the failure of Tri-City to remit payments as
provided herein, until payment and any applicable arrearage is made to La Porte.
A-2
5. Determination of Land to be Conveyed to La Porte. Upon execution of this Agreement,
and engagement of an Architect, Tri-City will cause the Architect to develop the portion
of the planned improvements for Tri-City Development Property that include the
Proposed Detention Basin to be conveyed to La Porte In consultation with La Porte's
Architect for planned improvements to the Park Land, a determination of the specific
size, shape of the portion of detention/amenity lake and maintenance berm constituting
the Proposed Detention Basin to be conveyed to La Porte, will be formulated. At that
time, the Proposed Detention Basin to be conveyed to La Porte will be surveyed by a
competent licensed surveyor, to determine the actual metes and bounds, and actual
acreage of the Proposed Detention Basin be conveyed to La Porte.
6. Conveyance of Land to La Porte. Upon completion of the requirements outlined in
paragraph 5, above, Tri-City shall cause the conveyance of Proposed Detention Basin to
La Porte through general or special warranty deed, free and clear of all liens and
encumbrances. Legal Fees incurred in connection with the preparation of necessary
conveyance instruments to be paid by La Porte. Upon completion of conveyance, La
Porte shall execute a Declaration of Gift to the City for Tax Purposes, stating the market
value of the Proposed Detention Basin, as determined by the actual cost per acre of said
land, and submit to Tri-City in exchange for the conveyance instrument. It is understood
and agreed that Tri-Cites will not be authorized to proceed with the Tri-Cites
Development Improvements, nor shall it be eligible to receive necessary approval or
permitting from the City of La Porte for plans, drawings, contracts, andlor other matters
related to said Development, until such time that it has conveyed the Proposed Detention
Basin to La Porte.
7. Waiver. The failure of a party to insist in anyone or more instance on the performance
of any term or condition of this Agreement shall not operate as a waiver of any future
performance of that term or condition.
8. Headings. The headings used in this Agreement appear strictly for the parties'
convenience in identifying the provisions of this Agreement and shall not affect the
construction or interpretation of the provisions of this Agreement.
9. Legal Fees. If any party to this Agreement succeeds in any legal action to enforce the
provisions of this Agreement, the other party or its successor-in-interest (as applicable)
shall reimburse the successful party for its attorneys' fees and costs related to the action,
in addition to any other relief obtained by the successful party.
10. Governing Law. This Agreement shall be subject to and be governed by the laws of the
State of Texas.
11. Notice. Any notice or request required or desired to be given under this Agreement shall
be in writing and shall be deemed to have been properly served when (i) delivered in
person, or (ii) three (3) days after deposit in the United States Mail, certified, return
receipt requested, postage pre-paid,
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(a) if to La Porte:
City of La Porte
Attn: City Manager
604 West Fairmont Parkway
La Porte, Texas 77571
or (b) if to Tri-Cites Holdings, L.P., to
Attn: Kenneth Paul Dawson, Managing Partner,
Canada Land & Development Company,
General Partner of Tri-City Holdings, L.P.
1106 Angela
Deer Park, Texas 77536
Any party may change such party's address for purposes of notice hereunder, by giving
notice to the other parties in accordance with the foregoing terms of this paragraph.
12. Severability. If any of the covenants, conditions or terms of this Agreement shall be
found void or unenforceable for whatever reason by any court of law or of equity, then
every other covenant, condition or term herein set forth shall remain valid and binding
provided that in such event all of the parties shall to the fullest extent possible modify
such covenant, condition or term to the extent required to carry out the general intention
of this Agreement and to impart validity to such covenant, condition or term.
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IN TESTIMONY WHEREOF, this instrument has been executed in duplicate
counterparts, each to have equal force and effect of an original, has been executed on
behalf of the parties hereto as follows:
It has on the J I~ day of June, 2007, been executed on behalf of the City by the
City Manager and attested by its City Secretary, pursuant to ordinance of the City
Council of the City of La Porte authorizing such execution.
ATTEST:
Lfrhi~Ji(L Ij L(J4
Martha Gillett, City Secretary
APPROVED AS TO FORM:
~r~
Clark T. Askins, Assistant City Attorney
Ti[j/7ff:LJ
.
Kenneth Paul Dawson, Managing Partner of Canada
Land & Development Company, L.L.c., as General
Partner of Tri-City Holdings, L.P.
A-5
EXHIBIT" A"
Description of City of La Porte Owned Park Property
The City of La Porte owned park property is identified as:
TRS 690, 691,708 & 709 (33.644 acres), La Porte Outlots, as recorded in Volume 83.
Page 344, ofthe Deed Records of Harris County, William M. Jones Survey, Abstract
482, La Porte, Harris County, Texas.
A-6
EXHIBIT "B"
Description of Tri-City Holdings, L.P. Properties:
Tri-City Holdings, L.P. property parcels are identified as:
TRS 692C, 693B,706 & 707 (17.7717 acres), La Porte Outlots, as recorded in
Volume 83, Page 344, of the Deed Records of Harris County, William M. Jones
Survey, Abstract 482, La Porte, Harris County, Texas, and,
TRS 710A, and 711 (18.726 acres), La Porte Outlots, as recorded in Volume 83.
Page 344, of the Deed Records of Harris County, William M. Jones Survey,
Abstract 482, La Porte, Harris County, Texas, and,
TR 712 (8.652 acres), La Porte Outlots, as recorded in Volume 83, Page 344, of
the Deed Records of Harris County, William M. Jones Survey, Abstract 482, La
Porte, Harris County, Texas and,
A portion ofTRS 692 & 693 (6.9210 acres), La Porte Outlots, as recorded in
Volume 83, Page 344, of the Deed Records of Harris County, William M. Jones
Survey, Abstract 482, La Porte, Harris County, Texas.
Total acreage ofthe Tri-City Holdings, L.P. parcels is approximately 50.0707
acres.
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EXHIBIT "C"
Description of the Tri-City Holdings, L.P. Land Conveyed to the City of La Porte Herein
for Proposed Detention Basin
Land to consist of +/- 1.5 acres, a Metes and Bounds description to be added to and become a
permanent part of this agreement, after land size is determined by Architects, and surveyed by a
licensed land surveyor.
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