HomeMy WebLinkAbout02-10-14 Regular Meeting of La Porte City Council
LOUIS R. RIGBY
DARYL LEONARD
Mayor
Councilmember District 3
JOHN ZEMANEK
TOMMY MOSER
Councilmember At Large A
Councilmember District 4
DOTTIE KAMINSKI
JAY MARTIN
Councilmember At Large B
Mayor Pro-Tem
MIKE MOSTEIT
Councilmember District 5
Councilmember District 1
MIKE CLAUSEN
CHUCK ENGELKEN
Councilmember District 6
Councilmember District 2
CITY COUNCIL MEETING AGENDA
Notice is hereby given of a Regular Meetingof the La Porte City Council to be held February 10,
2014,beginning at 6:00 p.m.in the Council Chambers of City Hall, 604 West Fairmont Parkway,
LaPorte, Texas, for the purpose of considering the following agenda items. All agenda items are
subject to action.
1. CALL TO ORDER
2. INVOCATION
– The invocation will be givenbyDon Hill,La Porte Inter Church Council.
3. PLEDGE OF ALLEGIANCE
– The Pledge of Allegiancewill be led by CouncilmemberMike
Mosteit.
4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS
(a)
Recognition – “Employee of the(Fourth) Quarter” – Martin Lucio(Meter Reader
Supervisor) – Mayor Rigby
(b)
Recognition – “Employee of the Year” – Christopher Brooks(Solid Waste Worker) – Mayor
Rigby
(c)
Recognition – “Manager of the Year” – Ray Nolen (EMS Chief) – Mayor Rigby
5. PUBLIC COMMENTS
(Limited to five minutesper person.)
6. CONSENT AGENDA
(All consent agenda items are considered routine by City Council and will be
enacted by one motion. There will be no separate discussion of these items unless a Councilmember
requests anitem be removed and considered separately.)
(a)
Consider approval or other action regarding the minutes of the regularcity council meeting
held January 27, 2014– P. Fogarty
(b)
Consider approval or other action authorizing the City Manager to execute an Interlocal
Water Service Agreement and an Interlocal Sanitary Sewer Service Agreement with San
Jacinto College District for its proposed Maritime Campus – T. Tietjens
(c)
Consider approval or other action authorizing the City Manager to execute a Memorandum
of Agreement with the Fairmont Park HOA for a Community Cooperation Project
(installation of electrical and irrigation at two entryways) for a total City contribution of
$5,000.00 – T. Leach
(d)
Consider approval or other action authorizing the City Manager to enter into a Professional
Service Contract with Dunham Engineering, Inc., in the amount of $15,000.00 for design
th
and construction services associated with repainting the interiorof the 4Street Water
Tower – D. Mick
(e)
Consider approval or other action authorizing the City Manager to enter into a Professional
Service Contract with Cobb, Fendley and Associates, Inc., for the design, bidding and
construction phase services for reconstructing roadway segments of Catlett, Belfast and
Pineybrook with a total authorization of $145,000.00 including a $7,500.00 contingency –
D. Mick
7. AUTHORIZATIONS
(a)
Consider approval or other action regarding proposed TIRZ Development Agreement
between the City of La Porte, La Porte Redevelopment Authority, Reinvestment Zone No.
(Postponed at the October 28, 2013;
1, and Beazer Homes Texas, LP – S. Livingston
December 9, 2013 and January 27, 2014, meetings until February 10, 2014, meeting.)
(b)
Consider approval or other action regarding an Ordinance enlarging the boundaries of
TIRZ No. 1, City of La Porte, Texas – S. Livingston (Postponed at the October 28, 2013;
December 9, 2013and January 27, 2014, meetings until February 10, 2014, meeting.)
(c)
Consider approval or other action regarding an Ordinance accepting and adopting
amended TIRZ No. 1 Project Plan and Reinvestment Zone Financing Plan – S. Livingston
(Postponed at the October 28, 2013; December 9, 2013 and January 27, 2014,
meetings until February 10, 2014, meeting.)
(d)
Consider approval or other action regarding Bid# 14011 for Generators and Switchgear in
the amount of $1,396,407.00 to C.F. McDonald – D. Mick
8.PUBLIC HEARING AND ASSOCIATED ORDINANCES
(a)Public Hearing
to receive comments regarding recommendation by the Planning and
Zoning Commission to approve an update to the Future Land Use Plan component of the
Comprehensive Plan of the City of La Porte to change future land use classification for tract
located northwest of Sens Road and Spencer Highway from commercial to low-density
residential – T.Tietjens(Postponed at the October 28, 2013; December 9, 2013 and
January 27, 2014, meetings until February 10, 2014, meeting.)
(b)
Consider approval or other action regarding an Ordinance adopting an update to the Future
LandUse Plan component of the Comprehensive Plan of the City of La Porte to change
future land use classification for tract located northwest of Sens Road and Spencer
Highway, from commercial to low-density residential – T. Tietjens(Postponed at the
October 28, 2013; December 9, 2013 and January 27, 2014, meetings until February
10, 2014, meeting.)
(c)Public Hearing
to receive comments regarding recommendation by the Planning and
Zoning Commission to approve Rezone Request # 13-92000002, for the rezoning of a
17.3705-acre-tract of land located northwest of Sens Road and Spencer Highway, from
General Commercial (GC) to Low Density Residential (R-1) – T. Tietjens (Postponed at
the October 28, 2013; December 9, 2013 and January 27, 2014, meetings until
February 10, 2014, meeting.)
(d)
Consider approval other action regarding an Ordinance amending Chapter 106 “Zoning” of
the Code of Ordinances of the City of La Porte by changing the zoning classification of a
17.3705-acre-tract of land located northwest of Sens Road and Spencer Highway from
General Commercial (GC) to Low Density Residential (R-1) – T. Tietjens(Postponed at
the October 28, 2013; December 9, 2013 and January 27, 2014, meetings until
February 10, 2014, meeting.)
9. REPORTS
(a)
Receive report of La Porte Development Corporation Board – Councilmember Engelken
10. ADMINISTRATIVE REPORTS
(a)
Receive report from City Manager
La Porte Redevelopment Authority/La Porte Tax Reinvestment Zone Number One
Meeting, Wednesday, February 19, 2014
City Council Meeting, Monday, February 24, 2014
11. COUNCIL COMMENTS
regarding matters appearing on the agenda; recognition of community
members, city employees, and upcoming events; inquiry of staff regarding specific factual
information or existing policies– CouncilmembersMosteit, Clausen, Martin, Moser, Kaminski,
Zemanek, Leonard,Engelken and Mayor Rigby.
12.EXECUTIVE SESSION:
The City reserves the right to meet in closed session on any agenda item
should the need arise and if applicable pursuant to authorization by Title 5, Chapter 551, of the
Texas Government Code, including, but not limited to, the following:
Texas Government Code, Section 551.071(1)(A) –
Pending or Contemplated Litigation: Meet
with City Attorney to discuss Federal Highway Administration review of American Trucking
Association complaint against City of La Porte.
Texas Government Code, Section 551.072 –
Deliberation regarding purchase, exchange, lease
or value of real property:Discussion regarding former Texas Parks and Wildlife building.
13.RECONVENE
into regular session and consider action, if any on item(s) discussed in executive
session.
14. ADJOURN
The City Council reserves the right to meet in a closed session on any agenda item should the need arise
and if applicable pursuant to authorization by Title 5, Chapter 551, of the Texas Government Code.
In compliance with the Americans with Disabilities Act, the City of La Porte will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meeting. Please contact Patrice Fogarty, City Secretary, at 281.470.5019.
CERTIFICATION
I certify that a copy of the February 10, 2014,agenda of items to be considered by the City Council was posted on
the City Hall bulletin board on February 5, 2014.
1.CALL TO ORDER
2.INVOCATION
– The invocation will be given by Don Hill, La Porte Inter Church Council.
3. PLEDGE OF ALLEGIANCE
– The Pledge of Allegiancewill be led by Councilmember Mike
Mosteit.
4.PRESENTATIONS, PROCLAMATIONS, and RECOGNITIONS
(a)
Recognition – “Employee of the (Fourth) Quarter” –Martin Lucio(Meter Reader
Supervisor) – Mayor Rigby
(b)
Recognition – “Employee of the Year”–Christopher Brooks (Solid Waste Worker) –
Mayor Rigby
(c)
Recognition – “Manager of the Year” – Ray Nolen (EMS Chief) – Mayor Rigby
Martin Lucio – Employee of the Quarter
th
4 Quarter 2013
Martin serves as our Meter Reader Supervisor. He supervises the repair, reading, and general
maintenance of our water meter system. During the past year, he has implemented an
aggressive water meter replacement and accuracy program that replaced 2,049 water meter
components. Due to his efforts, our meter reading accuracy has increased to 94% for cycle four;
and 87% for cycle three. Furthermore, the increased electrical reads reduces the man hours
required to manually re-read meters, which are not reading electronically.
He developed a water meter tracking system, which monitors meters read electronically by
each cycle and those meters which are not reading electronically. This tool allows usto pinpoint
which area of the City to devote special attention and install the appropriate meter type (those
with intelligent component or standard components).
Martin leads by example. His meter repair abilities are exemplary and he has further solidified
the mechanical and technical knowledge of his direct reports. As a team, Martin has elevated
the meter readers into a cohesive unit that performs all of their duties at a very high level with
little or no errors; moreover, amongst their peers, the meter readers are now respected as
competent technicians.
Martin is an affable, hard working, loyal employee, who has developed a strong working
relationship with our billing team, City departments and the public. This renewed relationship
has increased our billing accuracy, working relations and image amongst our customers.
Christopher Brooks – Employee of the Year
2013
Christopher Brooks started his employment with the City of La Porte on January 3, 2011 as a
Solid Waste Worker. Chris has not missed a day to unscheduled leave.
Chris’ responsibilities require him to be extremely flexible and proactive. Chris meets these
challenges with a positive attitude. Most people don’t think much about their Solid Waste
Workers until you get stuck behind a truck when you’re in a hurry or your garbage doesn’t get
picked up when you thought it would. For most folks, the Solid Waste Worker is out of sight,
out of mind. Solid Waste Workers at work every day deserve the utmost appreciation and
respect.
Our Solid Waste Workers pick up trash from approximately 1,100 homes per route in all types
of weather and in all types of conditions, especially the Texas heat. In fact, the work of a Solid
Waste Worker is so physically grueling that a lot of new hires only make it a couple of hours
before requesting to be picked up from their route and go home.
Mr. Brooks has garnered a perfect attendance record during his employment that began over 3
years ago. Having experienced the hottest summer on record during his time here, I am sure
you can appreciate the dedication it took to show up every day and work in those conditions.
Chris continues to be a great asset to the City of La Porte.
RAY NOLEN: MANAGER OF THE YEAR 2013
As EMS Chief, Ray is responsible for the operation of the EMS Division, which includes
emergency medical response services and community outreach programs. Ray supervises 32
employees that staff 3 ambulances, a bike medic unit, special event support, and disaster/mass
casualty assistance. While Ray does an excellent job managing the day-today operation of EMS,
it is his work on a community service effort that is being recognized here. A Council person had
reported to staff that a particular community member was in very poor health and did not have
any means to obtain food or medical care. It was feared that this individual may be in very
serious jeopardy if something was not done. Upon being informed of the situation Ray
immediately took action. He personally visited the individual and spent several hours speaking
with him, as it took some time to gain the individual's trust to even all EMS to transport him to
a hospital for a medical evaluation. Ray also cleaned up several bag's worth of trash from the
home and took out the trash. For most, this would have ended the interaction with this
individual in need. However, Ray stayed in touch with the social worker assigned to the case.
Ray was informed that the social worker initially was going to release the individual back to his
home with twice per week health care, which would have been very detrimental to the
individual's health with no support system in place. Ray spent a long time speaking with the
individual at the hospital to discuss options for his future and pointed out that going home
without a support system in place for basic needs, such as food and medicine, would put the
individual in the same situation as before. Ray advocated on the individual's behalf to make
sure that he would be transferred to a facility that would be able to meet his medical needs. As
a final extra mile gesture, Ray committed that he would make sure that the individual’s mail
would be picked up and did so for the first week and a half until a neighbor was identified that
could help take this task.
At every step in this situation, Ray went above and beyond the call to make sure that this
individual was taken care of properly. He did it because he cares about people and about doing
the job the right way. I am proud of the work that was done on this individual's behalf.
(All consent agenda items are considered routine by City Council and will
be enacted by one motion. There will be no separate discussion of these items unless a
Councilmember requests an item be removed and considered separately.)
(All consent agenda items are considered routine by City Council and will be enacted
by one motion. There will be no separate discussion of these items unless a Councilmember requests an
item be removed and considered separately.)
(a)
(Postponed at the December 9, 2013,
meeting until January 27, 2014, meeting.)
(Postponed at the October 28, 2013, and
December 9, 2013, meetings until January 27, 2014, meeting.)
(Postponed at the October 28, 2013, and December 9, 2013, meetingsuntil
January 27, 2014, meeting.)
(Postponed at the October 28, 2013, and December 9, 2013,
meetingsuntil January 27, 2014, meeting.)
(Postponed at the
October 28, 2013, and December 9, 2013, meetingsuntil January 27, 2014, meeting.)
(Postponed at the
October 28, 2013, and December 9, 2013, meetingsuntil January 27, 2014, meeting.)
(Postponed at the
October 28, 2013, and December 9, 2013, meetingsuntil January 27, 2014, meeting.)
REQUEST FOR CITY COUNCIL AGENDA ITEM
Appropriation
Agenda Date Requested: February 10, 2014
Source of Funds:_____N/A___________
Requested By: Tim Tietjens
Account Number: _____N/A__________
Department: Planning
Amount Budgeted:___N/A___________
Report: _ _Resolution: ___Ordinance: _X__
Amount Requested: ___N/A__________
Budgeted Item: YES XNO
Exhibits:
1.Ordinance
2.Letters from Shoreacres & Pasadena
3.InterlocalWater ServiceAgreement
4.Interlocal San.Sewer Service
Agreement
5.Area Map
SUMMARY & RECOMMENDATION
The San Jacinto College Districthas requestedwater and sanitary sewer services from La Porte to
serve its future Maritime Campus located south of Shoreacres within the corporate limits of
Pasadena(see Area Map). Neither Pasadena nor Shoreacrescurrently maintainsufficient water or
sanitary sewer facilities in the areato serve thissite therefore;each city has expressedno objection
to La Porte providing these services(see letters from Shoreacres and Pasadena).
Existing City policy does not address requests for utility services in areas outside La Porte’s
jurisdiction. Therefore, staff typicallypresents theserequeststoCouncilfor consideration on a
case-by-case basis.
Per theagreements,La Portewill bill the San Jacinto College Districtatone and one-half (1-1/2)
times its prevailing commercial utilityrate and will retain the right to interrupt or service(s)to the
facility at any time water or sewer facilities experience a failureor in the event that the City enacts
its drought contingency measures.
The initial term of the agreements with the San Jacinto College District will expire on December
31, 2019. Bothagreements will be automatically extended unless written notice is received from
either party terminating utility service(s).
______________________________________________________________________________
Action Required by Council:
Consider approval or other action regardinganordinance authorizing the City Manager to execute
an InterlocalWater Service Agreement and an Interlocal Sanitary Sewer Service Agreement with
the San Jacinto College District for its proposed Maritime Campus.
______________________________________________________________________________
Approved for City Council Agenda
_______________________________________________________
Corby D. Alexander, City Manager Date
ORDINANCE NO. 2014-______________
AN ORDINANCE APPROVING AND AUTHORIZING AN INTERLOCAL WATER
SERVICE AGREEMENT AND AN INTERLOCAL SANITARY SEWER SERVICE
AGREEMENTBETWEEN THE CITY OF LA PORTEAND THE SAN JACINTO
COMMUNITYCOLLEGE DISTRICT, FINDING COMPLIANCE WITH THE OPEN
MEETINGS LAW, AND 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, in substantially the
form as shown in the document which is attached hereto and
incorporated herein by the reference. 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 approval, and it is so ordered.
PASSED AND APPROVED, this ______________ day of _____________________________________, 2014.
CITYOFLA PORTE
Louis R. Rigby,Mayor
ATTEST:
PatriceFogarty,CitySecretary
APPROVED:
Knox W.Askins, City Attorney
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Legend
AREA MAP
LA PORTE CITY LIMITS
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: February 10, 2014 Appropriation
Requested By: Traci Leach Source of Funds: Fund 015
Department: Administration Acct Number:
Report: Resolution: Ordinance: Amount Budgeted: $20,000
Attachments: HOA Commitment Requested: $5,000
Attachments: Budgeted Item(s): YES NO
_____________________________________________________________________________________________
SUMMARY & RECOMMENDATION
As part of the FY 2014 budget, the Council approved funding for Community Coop projects, where
the City would partner with HOAs and other neighborhood groups to complete small beautification
and quality of life projects. A total of $20,000 was budgeted with a maximum City contribution per
project of $5,000. All projects would be considered on a first come, first served basis. The
Brookglen HOA had a project approved in October 2013 and a second project for Shady Oaks was
approved on January 13, 2014. There is $13,825remaining.
The Fairmont HOA has requested Council consideration of an entrywayproject with a scope as
follows:
Installation of electrical service at two entryways- one at Spencer Highway and Farrington
and another at Spencer Highway and Valleybrook
Installation of irrigation system to serve the flower beds at each of the two entryways
The Fairmont HOA Board has approved a contribution of $5,000.Staff solicited quotes from three
electrical companies and received a low quote from Kevin Heine Electrical Services for $7,850 for
electrical work. Irrigation materials and installationis estimated to cost $2,150 for a total project
budget of $10,000. In-house forces will be utilized for the irrigation work.
Staff recommends approval of this project.
A
ction Required by Council:
Consider approval or other action authorizing the City Manager to execute a Memorandum of
Agreement with the Fairmont Park HOA for a community cooperation project (installation of
electrical and irrigation at 2 entryways) for a total City contribution of $5,000.
Approved for City Council Agenda
___________________________________________________________
Corby D. Alexander, CityManager Date
From:Jo Ann Pitzer
To:Leach, Traci
Subject:Re: Fairmont Park Homes Association Request
Date:Wednesday, January 29, 2014 2:06:11 PM
Hi Traci,
We budgeted $5000 for this phase.
Thanks,
Sent from my iPhone
On Jan 29, 2014, at 1:38 PM, "Leach, Traci" <LeachT@laportetx.gov> wrote:
Jo Ann:
Can you clarify how much the Fairmont HOA is willing to contribute towards this
project, please? I didn’t realize that piece was missing until I started finalizing the
agenda request for the February agenda.
Thank you!
From: JO ANN PITZER \[mailto:joannpitzer@yahoo.com\]
Sent: Tuesday, January 21, 2014 12:06 PM
To: Leach, Traci
Subject: Re: Fairmont Park Homes Association Request
Jo Ann Pitzer
People don't care how much you know until they know how much you care
Jo Ann Pitzer
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: February 10, 2013
Source of Funds: 003 – Utility
Requested By:David Mick
Account Number:
Department:Public Works
Amount Budgeted:$120,000 design and
Report: ___Resolution:_____Ordinance:_________
construction.
Amount Requested: $15,000
Budgeted Item:YES
NO
Exhibit:Dunham Engineering, Inc. Proposal
SUMMARY & RECOMMENDATION
The FY 14 budget includes an allocation of $120,000 for painting the interiorof the elevated
th
water tower on 4Street. Staff received a design and construction services proposal from
Dunham Engineering in the amount of $15,000 (attached). The $15,000 proposal, if authorized,
would increase the total FY 14 value of city contracts to Dunham Engineering to more than
$50,000 requiring City Council authorization. Dunham Engineering has one other FY 14
contract with the City of La Porte in the amount of $40,000 for the design and construction
services associated with the budgeted $465,000 ground storage tank replacement at Water Plant
#5 located near the Bay Area Boulevard/Spencer Highway intersection.
Other Considerations:
Please note that there is a discrepancy in the budget description on Page 8-6. The project
th
title reads: “Recoat Interior of S. 4Street Elevated Tank”; the body of the description
includes note that, in addition to the interior of the tank, the exterior of the tank will be
over-coated as wellwhich is incorrect. The proposed work includes only the interior of
the tank.
th
The consultant re-evaluated the exterior coating of the 4Street elevated tanks. The tank
was over-coated previously (2006). The next exterior coating, recommended in 3 to 5
years, will require shrouding the tanks, sandblasting the prior coatings down to the metal
structure, and coating the exteriors with an epoxy paint.
Action Required by Council:
Consider approval or other action of this request to grant the City Manager authority to enter into
a professional services contract with Dunham Engineering, Inc. in the amount of $15,000for
th
design and construction services associated with repainting the interior of the 4Street Water
Tower.
Approved for City Council Agenda
Corby D. Alexander Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
Budget
Agenda Date Requested: February 10, 2013
019 (Drainage Fee)
Source of Funds: 033 (Street Tax)
Requested By:David Mick
Account Number:
Department:Public Works
019 ($60,000)
Amount Budgeted:033 ($150,000)
Report: ___Resolution:_____Ordinance:_________
019 ($ 35,000)
Amount Requested: 033 ($110,000)
Budgeted Item:YESNO
Exhibit:Cobb Fendley Professional Services Proposal
SUMMARY & RECOMMENDATION
The FY 14 budget includes an allocation for the design of Catlett (Valleybrook to Farrington),
Belfast (Valleybrook to Farrington), and Pineybrook (Antrim to Carlow). The City of La Porte
selected the firm of Cobb, Fendley & Associates, Inc.to provide professional engineering
services for the design, bidding,and construction phase services for this project. The price
proposal submitted by Cobb Fendley (attached) totaled $137,750.00. The total request is
$145,000.00 including a $7,500 contingency. The total request is below the budget amount of
$230,000.00. The construction estimate (FY 15) is $2,300,000.
The price proposal references Phase 1 and Phase 2 areas. Staff directed Cobb Fendley to
consider the potential for a phased project with the proposal in the event that budget dictated a
need to reduce the project scale. Phase 1 includes Pineybrook and the segments of Catlett and
Belfast between Valleybrook and Pineybrook. Phase 2 includes the segments of Catlett and
Belfast from Pineybrook to Farrington. The HDR street inspection rating was 2 of 9 (9 being the
best) for the Phase 1 area; 3 of 9 for the Phase 2 area. Staff recommends constructing both
phases simultaneously to complete the improvements from Valleybrook (reconstructed in 2008)
to the newly reconstructed Farrington Boulevard roadway.
Anticipated completion of the design is June, 2014. Anticipated bid date is first quarter FY 15.
At least one public meeting with the residents is anticipated during the design process along with
other resident contacts to identify any access or other considerations of the residents.
Benefits:
The project will address several of the lower rated concrete street segments identified in the 2013
comprehensive street inspection report.
Liabilities:
Deferring the project construction would add to future year maintenance responsibilities unless
substituted with a like project.
Operating Costs:
Slight decrease in operating costs.
Action Required by Council:
Consider approval or other action of this request to grant the City Manager authority to enter into
a professional services contract with Cobb, Fendley and Associates, Inc. for the design, bidding
and construction phase services forreconstructing roadway segments of Catlett, Belfast and
Pineybrook with a total authorization of $145,000 including a $7,500 contingency.
Approved for City Council Agenda
Corby D. Alexander Date
REQUEST FOR CITY COUNCILAGENDA ITEM
Budget
Agenda Date Requested: February 10,2014
Source of Funds:
Requested By: Scott D. Livingston
Account Number:
Department: Administration/Economic Development
Amount Budgeted:
Report: Resolution: Ordinance:
Amount Requested:
Exhibit: Letter to the City Council
Budgeted Item:YES NO
Exhibit: Proposed TIRZ Development Agreement
SUMMARY & RECOMMENDATIONS
\[NOTE: This item originally appeared on the December 9, 2013 agenda for Council
consideration. At that time, all items related to this development were postponed until the
January 27, 2014 meeting. The developer has requested that all items related to this
development be postponed until the February 10, 2014 meeting.\]
Beazer Homes wishes to annex approximately 32 acres on the northwest corner of Sens Road
and Spencer Hwy into TIRZ No. 1 and rezone approximately 17 acres of land in the same area
from General Commercial (GC) to Low Density Residential (R-1). Beazer requests that the City
Council consider approving the annexation of the 33 acre tract of land on the northwest corner of
Sens Road and Spencer Hwy into TIRZ No. 1 to make the proposed residential development
economically feasible to develop.
On the 17 acres of land which are requested to be rezoned, Beazer Homes proposes to build
approximately 73 single family homes. The plans Beazerwill offer have a base average size of
2,025 square feet, but their business model is to sell structural options which Beazerbelieves will
increase the square footage of the homes to an average size of 2,200 square feet. Beazer Homes
has enclosed information showing the average sales price per square foot for existing and new,
competing residential developments as compared to the average, projected sales price per square
foot for each proposed Beazer Home. Beazer also provides information which shows how
competing residential developers sell homes in this area at a higher price than the same homes in
other communities around Houston.
Beazer Homes has agreed to enter into a four-way development agreement among the following
entities: Beazer Homes Texas LP, the La Porte Redevelopment Authority, Reinvestment Zone
Number One, and City of La Porte. In order to address the concerns of the residents of Spencer
Landing regarding the square footage and appearance of the Beazer product, Beazer has agreed
to some restrictionswithin the TIRZDevelopment Agreement (enclosed) that would
require: (1) 100% masonry on the front first floor elevationwith 50% along the sides, (2)the
investment of approximately $2,097,297in public improvements, and (3) that the cumulative,
average sales price (documented at the time Developer sells a finished home to an initial end-
user) of all homes within the Project Site is not less than $175,000.
A representative from Beazer Homes is available tonight to address any questions or concerns
that theCity Council may have about Beazer Homes’proposed residential development, the
request to annex the 33 acre tract of land into TIRZ No. 1, and/or the request to re-zone
approximately 17 acres of land to accommodate the proposed residential development.
Action Required by the City Council:
Consider approval or other action of the proposed TIRZ Development Agreement.
Approved for the City CouncilAgenda
Corby D. Alexander, City Manager Date
Draft 12.3.13
DEVELOPMENT AGREEMENT
among
CITY OF LA PORTE, TEXAS,
and
REINVESTMENT ZONE NUMBER ONE,
CITY OF LAPORTE, TEXAS,
and
LA PORTE REDEVELOPMENT AUTHORITY
and
BEAZER HOMES TEXAS LP
HOU:3372249.1
DEVELOPMENT AGREEMENT
This Agreement (“Agreement”), effective ________, 2013, is made by and among the
CITY OF LA PORTE, TEXAS (the “City”),REINVESTMENT ZONE NUMBER ONE, CITY
OF LAPORTE, TEXAS (the “Zone”), a tax increment reinvestment zone created by theCity,
acting by and through its Board of Directors (the “Zone Board”), LAPORTE
REDEVELOPMENT AUTHORITY (the “Authority”), a local government corporation created
by the City,acting by and through its Board of Directors (the “Authority Board”) andBEAZER
HOMES TEXAS LP, a Delaware limited partnership(the “Developer”).
RECITALS
WHEREAS, by OrdinanceNo. 99-2325 (the “TIRZ Ordinance”),the City Council of the
City created the Zone pursuant to Chapter 311, Texas Tax Code, as amended(the “TIRZ Act”);
and
WHEREAS, the Zone Board adopted a final Project Plan and Reinvestment Zone
Financing Plan; and
WHEREAS, the City Council approved the final Project Plan and Reinvestment Zone
Financing Plan by Ordinance No. 99-2352; and
WHEREAS, the Zone Board recommended that the Zone’s boundaries be expanded and
adopted an AmendedProject Plan and Reinvestment Zone Financing Plan (as amended, the
“Project Plan”); and
WHEREAS, the City Council approved the expansion of the Zone’s boundaries by
Ordinance No. 2013-______ and approved the Project Plan by Ordinance No. 2013-___; and
WHEREAS, the City authorized the creation of the Authority to aid, assist and act on
behalf of the City in the performance of the City’s governmental functions with respect to the
common good and general welfare of the Cityand neighboring areas as described in the TIRZ
Ordinance; and
WHEREAS, the City, the Zone and the Authority have entered into that certain
Agreement dated July 9, 2001, and approved byOrdinance No. 2001-2498 (the “Tri-Party
Agreement”), pursuant to which the City and the Zone contracted with the Authority to
administer the Zone, including, but not limited to, the power to engage in activities relating to the
acquisition and development of land, to construct and improve infrastructure in the City, to enter
into development agreements with developers and builders in the City, and to issue, sell or
deliver its bonds, notes or other obligations in accordance with the terms of the Tri-Party
Agreement upon the approval of the City Council of the City; and
WHEREAS, the Tri-Party Agreementfurther provides that the Authority must obtain the
prior approval of the City for any project approved in the Project Plan that is constructed or
caused to be constructed by the Authority; and
WHEREAS, the TIRZ Actprovides that the Zone may enter into agreements as the Zone
Board considers necessary or convenient to implement the Project Plan and achieve its purposes;
and
WHEREAS, the Authority Boardand the Zone Board have determined that it is in the
best interest of the Zone and the Authority to contract with the Developer, in order to provide for
the efficient and effective implementation of certain aspects of the Project Plan; and
WHEREAS, the Developer desires to proceed with the development of an urban project
consisting of residential,commercialand retail development locatedon land within the Zone (the
“Project”)prior to the time that the Authority can issue its bonds or otherwise pay the costs of
the Public Improvements (as defined herein);
NOW THEREFORE, for and in consideration of the mutual promises, covenants,
obligations, and benefits of this Agreement, the City, the Zone, the Authority and the Developer
contract and agree as follows:
AGREEMENT
ARTICLE 1
GENERAL TERMS
1.1Definitions. The terms “Agreement,” “Authority,” “Authority Board,” “City,”
“Developer,” “Project,” “Project Plan,” “TIRZ Act,” “Tri-Party Agreement,” “Zone” and “Zone
Board” have the above meanings, and the following terms have the following meanings:
“Authority Bonds” shall mean the Authority’s tax increment revenue bonds issued in one
or more series pursuant to Section 6.1(H) of this Agreement.
“Available Tax Increment” shall mean funds in the Tax Increment Revenue Fund.
“Completion” shall mean completion of construction of the Public Improvements in
accordance with the Plans and Specifications so that the Project can be used and maintained for
its intended purposes. Completion shall be approved by the City and certified by the engineering
firm engaged by Developer to make such certification.
“Contract Progress Payment” shall mean the payment due to a contractor or consultant
hired by Developer to complete the Public Improvements. A contract progress payment must be
supported not only by a report of a certified public accountant as required in Section6.1(B), but
also by customary documentation including, but notlimited to, the name and address of the
contractor, a description of the contract pursuant to which the payment is requested, the amount
of such payment, the original contract amount, total payments made to date on such contract, an
estimate of remaining work to be completed, the cost of such work, and customary lien and
subcontractor releases.
“County” shall mean Harris County, Texas.
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“Developer Advances” shall mean any funds advanced for Project Costsby the
Developer pursuant to Section 6.1 of this Agreement and shall include any interest payable
thereon as prescribed in this Agreement.
“HCAD” shall mean the Harris County Appraisal District.
“Parties” or “Party” shall mean the City, the Zone, the Authority and the Developer, the
parties to this Agreement.
“Plans and Specifications” shall mean the designs, plans and specifications for the Public
Improvements prepared or to be prepared by engineering and landscape architect firms at the
direction of Developer in accordance with the Project Plan and as approved by the City in
accordance with Section 4.2.
“Pledged Available Tax Increment” shall mean the Available Tax Increment attributable
to the ProjectSite.
“Property Account” means an account within the Tax Increment Revenue Fund for
deposit of Pledged Available Tax Increment, the proceeds of Authorized Bonds issued to finance
Public Improvements pursuant to this Agreement, and other obligations issued pursuant to
Article 6, and earnings from the investment of such amounts.
“Project Costs” shall mean the cost of the Public Improvements.
“Project Site” shall mean the area known asLa Porte Outlots Subdivision, located in
certain tracts described in Exhibit A, and all improvements located thereon.
“Public Improvements” shall have the meaning provided in Article 3 of this Agreement.
“State” shall mean the State of Texas.
“Tax Increment” shall have the meaning given such term in the Tri-Party Agreement.
“Tax Increment Revenue Fund” shall mean the special fund established by the Authority
and funded with payments made by the City and any other participating Taxing Units, pursuant
to the Tri-Party Agreement.
“Taxing Unit” shall mean individually and collectively, the City and any other taxing
units participating in the Zone.
1.2Singular and Plural. Words used herein in the singular, where the context so
permits, also include the plural and vice versa. The definitions of words in the singular herein
also apply to such words when used in the plural where the context so permits and vice versa.
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ARTICLE 2
REPRESENTATIONS
2.1Representations of the Authority. The Authority hereby represents to the
Developer that:
(A)The Authority is duly authorized, created and existing in good standing under
the laws of the State and is duly qualified and authorized to carry on the governmental
functions and operations as contemplated by this Agreement.
(B)The Authority has the power, authority and legal right to enter into and
perform this Agreement and the execution, delivery and performance hereof (i) have been
duly authorized, (ii)to the best of its knowledge, will not violate any applicable
judgment, order, law or regulation, and (iii)do not constitute a default under, or result in
the creation of, any lien, charge, encumbrance or security interest upon any assets of the
Authority under any agreement or instrument to which the Authority is a party or by
which the Authority or its assets may be bound or affected.
(C)The Project, the Public Improvements and the Project Costs are components
of or are consistent with the Project Plan.
(D)This Agreement has been duly authorized, executed and delivered by the
Authority and, constitutes a legal, valid and binding obligation of the Authority,
enforceable in accordance with its terms except to the extent that (i)the enforceability of
such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium
or other similar laws of general application in effect from time to time relating to or
affecting the enforcement of creditors’ rights and (ii)certain equitable remedies including
specific performance may be unavailable.
(E)The execution, delivery and performance of this Agreement by the Authority
does not require the consent or approval of any person which has not been obtained.
(F)The Authority has an exemption from the payment of sales and use taxes
pursuant to the statute under which the Authority was created.
2.2Representations of the Zone. The Zone hereby represents to the Developer that:
(A)The Zoneis duly authorized, created and existing in good standing under the
laws of theState and is duly qualified and authorized to carry on the governmental
functions and operations as contemplated by this Agreement.
(B)The Zone has the power, authority and legal right to enter into and perform
this Agreement and the execution, delivery and performance hereof (i)have been duly
authorized, (ii)to the best of its knowledge, will not violate any applicable judgment,
order, law or regulation, and (iii)do not constitute a default under, or result in the
creation of, any lien, charge, encumbrance or security interest upon any assets of the
Zone under any agreement or instrument to which the Zone is a party or by which the
Zone or its assets may be bound or affected.
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(C)The Project, the Public Improvements and the Project Costs are components
of or are consistent with the Project Plan.
(D)This Agreement has been duly authorized, executed and delivered by the Zone
and constitutes a legal, valid and binding obligation of the Zone, enforceable in
accordance with its terms except to the extent that (i)the enforceability of such
instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or
other similar laws of general application in effect from time to time relating to or
affecting the enforcement of creditors’ rights and (ii)certain equitable remedies including
specific performance may be unavailable.
(E)The execution, delivery and performance of this Agreement by the Zone does
not require the consent or approval of any person which has not been obtained.
2.3Representations of the Developer. The Developer hereby represents to the
Authority and the Zone that:
(A)The Developer is duly authorized, created and existing in good standing under
the laws of the State and is qualified to do business in the State.
(B)The Developer has the power, authorityand legal right to enter into and
perform its obligations set forth in this Agreement, and the execution, delivery and
performance hereof, (i)have been duly authorized by requisite corporate action, (ii)will
not, to the best of its knowledge, violate any judgment, order, law or regulation
applicable to the Developer or any provisions of the Developer’s bylaws or limited
partnership agreement, and (iii)do not constitute a default under or result in the creation
of, any lien, charge, encumbrance or security interest upon any assets of the Developer
under any agreement or instrument to which the Developer is a party or by which the
Developer or its assets may be bound or affected.
(C)The Developer will have sufficient capital to perform its obligations under this
Agreement at the time it needs to have sufficient capital.
(D)This Agreement has been duly authorized, executed and delivered and
constitutes a legal, valid and binding obligation of the Developer, enforceable in
accordance with its terms except to the extent that (i)the enforceability of such
instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or
other similar laws of general application in effect from time to time relating to or
affecting the enforcement of creditors’ rightsand (ii)certain equitable remedies including
specific performance may be unavailable.
(E)The Developer will prepare and record residential covenant/deed
restrictions for the Project Site requiring that (1) the square footage for each single-family
home constructed thereon shall be no less than 1,629 square feet (as determined by
HCAD); (2) upon build-out of the Project Site, at least 64% of the single-family homes
will have at least 2,000 square feet (as determined by HCAD); and (3) each single-family
home shall have a masonry exterior on 100% of the first-floor front elevation and on not
less than 50% onof each first-floor side elevation.
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ARTICLE 3
THE PUBLIC IMPROVEMENTS
3.1Public Improvements. The Public Improvements shall be and include the design,
construction and installation of certain public infrastructure relating to the Project, such
infrastructure being more particularly described in the Plans and Specifications.
3.2Project Costs. Theestimated Project Costs of the Public Improvements are
described in ExhibitB. The Public Improvements will be developed pursuant to the Plans and
Specifications and a schedule that is mutually agreeable to the Parties. The Project Costs shall
include all architectural, engineering, design, legal and other consultant fees and expenses (as
further set forth in Section6.1(A) hereof) related to such Public Improvements. The Project
Costs may be modified with approval of the Authority Board.
3.3Obligation. The Public Improvements shall be designed, acquired, constructed
and implemented in accordance with the Plans and Specifications to be approved by the City
pursuant to Article 4.
ARTICLE 4
DUTIES AND RESPONSIBILITIES OF THE DEVELOPER
4.1Construction Manager. Subject to Article3, the Developer agrees to construct the
Public Improvements as described in the Plans and Specifications and to provide and furnish, or
cause to be provided and furnished, all materials and services as and when required in connection
with theconstruction of the Public Improvements. The Developer will obtain all necessary
permits and approvals from the City and all other governmental officials and agencies having
jurisdiction (including the approvals required under the Tri-Party Agreement), provide
supervision of all phases of construction of the Public Improvements, provide periodic reports as
may be reasonably requested and required by the Authority from time to time of such
construction to the Authority Boardwith copies to the City, and cause the construction to be
performed in accordance with the Plans and Specifications.
4.2Design of the Public Improvements. The Developer shall prepare or cause to be
prepared the Plans and Specifications for the Public Improvements. Prior to the commencement
of construction or implementation of the Public Improvements, the Plans and Specifications must
be submitted to and approved by the City and all other regulatory authorities having jurisdiction.
Once the City has approved the Plans and Specifications, no changes thereto can be made
without the express written approval of the City, the Zone Board, and the Authority.
4.3Completion. On the later of completion of the construction of the Public
Improvements or thirty days after this Agreement is executed, Developer shall provide the
Authority and the City with a final cost summary of all costs associated with such Public
Improvements, a Certificate of Completion and evidence that all amounts owing to contractors
and subcontractors have been paid in full evidenced by customary affidavits executed by such
contractors.
4.4Conveyance of Easements. If applicable, the Developer shall grant the City and
the Authority all required temporary construction and access easements necessary to maintain the
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Public Improvements. The easements granted must be satisfactory for the intended purpose as
determined by the City. On property owned by the Authority, the Authority shall grant the
Developer at no cost all required temporary construction and access easements necessary to
install the Public Improvements.
4.5Payment of Fees. If applicable, Developer agrees to pay anymonthly rates and
charges for water and sewer servicesand shall pay all applicable City building permit fees for the
Public Improvements.
4.6Cooperation. Developer agrees that it will cooperate with the Zoneand the
Authority and Developer will provide all necessary information to the Authority and its
consultants in order to assist the Authority in complying with the Tri-Party Agreement,
including, without limitation, the completion of the audit and construction audit required therein.
4.7Ad Valorem Taxes. The Developer agrees that all real property within the Project
Site will be valued for taxation in accordance with Section23.01, Texas Tax Code, as hereinafter
may be amended, and that it will not request such property to be valued for taxation on the basis
of inventory as permitted by Section 23.12, Texas Tax Code and as hereinafter may be amended.
4.8Design and Completion of Public Improvements prior to Effective Date. Prior to
the effective date of this Agreement, the Developer has committed and expended funds in
amounts for Public Improvements described in Exhibit B, in reliance upon the City’s
authorization to enlarge the Zone and the Authority’s commitment to pay or reimburse such costs
in accordance with the terms herein, but no other contract has heretofore been entered into by the
Developer with the Authority or the Zone to provide for such expenditures and reimbursement.
The Developer represents that the fair market value of the work and property resulting from the
funds so committed or expended and benefiting the Authority and the Zoneis at least equal to
the amounts so committed and expended, respectively. In order to compromise and settle all
claims the Developer may have arising out of any failure by the Authority and Zone to reimburse
funds heretofore expended by the Developer for such Public Improvements, by entering into this
Agreement,
(A)the Authority and the Zoneagree to reimburse the Developer for Project Costs
of such Public Improvements paid or incurred prior to the date hereof in a total amount of
committed funds specified in Exhibit Bplus financing costs and/or interest as set forth in
Section6.1 below, attributable thereto in accordance with and subject to the other
provisions hereof, without admitting liability of any kind on their part, and
(B)the Developer releases and discharges the Authority and the Zone from all
claims of any nature the Developer might make, now or in the future, arising out of any
failure by the Authority and Zoneto pay or reimburse the Developer for any other work
done prior to the date hereof or in any greater amount or on any other conditions for work
performed in connection with Public Improvements prior to the date hereof.
4.9Changes in Project. The Developer shall not make any change in the Project as to
the uses of the property or change the boundaries within the Project Site without the express
written consent of the City, the Authority Board and the Zone Board.
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4.10No Vested Rights. The Developer expressly understands and agrees that neither
this Agreement nor any approvals required herein shall be construed as a “permit,” as defined in
Section245.001 of the Texas Local Government Code, or anapplication therefor; and, as such,
the Developer has no vested right as a “permit” in any order, regulation, ordinance, rule,
expiration date or other requirement in effect at the time of execution of this Agreement or at the
time any approval pursuant to the terms hereof is obtained. To this end, Developer, for itself, its
officers, agents, employees, successors and assigns, hereby releases and holds harmless the City,
the Authority and the Zonefrom any claim or cause of action involving vested rights, including,
but not limited to, such a right claimed pursuant to Chapter245 of the Texas Local Government
Code, arising out of this Agreement or the approvals required to be obtained herein.
ARTICLE 5
DUTIES AND RESPONSIBILITIES OF THE AUTHORITY
5.1Authority Contributions. The Authority shall pay or reimburse to Developer the
Project Costs in the amount of the actual costs of the Public Improvements, subject to the
conditions of andprovided by Articles3 and 4. The total, actual Project Costs of the Public
Improvements, for which the Authority shall be responsible under the terms of this Agreement, is
estimated to be $2,097,297. Attachedhereto as Exhibit Bis a detailed description of the
engineering estimates of the Public Improvements. The Project Costs shall be financed and
funded in accordance with Article6 hereof. In the event a portion of the Public Improvements is
determined to be ineligible under the Act, the Project Costs shall be reduced by the amount of
such ineligible Public Improvements. If the Authority has already repaid Developer for such
ineligible Public Improvements in accordance with this Agreement, the Parties agree that
Developer shall reimburse the Authority for such repayment within thirty (30) days of receipt of
an invoice from the Authority and all such sums shall bear interest at the rate established in
Section 6.1(F) from the date past due until the date of such reimbursement. Should the Developer
fail to timely pay such amount, the Authority may, in its solediscretion, withhold the amount
due, including accrued interest, from future Contract Progress Payments.
5.2Project Costs. The Authority shall pay or reimburse the Project Costs in
accordance with this Agreement. In the event the Authority does not have funds available at the
time all or part of the Project Costs are payable by the Authority in accordance with this
Agreement, the Project Costs shall be funded in accordance with Article6 hereof, and such
funding shall not be deemed a default by the Authority under this Agreement.
ARTICLE 6
PUBLIC IMPROVEMENTS FINANCING AND FUNDING
6.1Developer Advances.
(A)Developer shall advance sufficient funds as such become due for all costs
comprising the Project Costs including, without limitation, all costs of design,
engineering, materials, labor, construction, and inspection arising in connection with the
Public Improvements, including all payments arising under any contracts entered into by
Developer pursuant to this Agreement, all costs incurred in connection with obtaining
governmental approvals, certificates or permits (including any building permit fees)
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required as a part of any contracts entered into in accordance with this Agreement and all
related legal fees incurred in connection therewith.
(B)The Developer must submit, within sixty (60) days after the latest of recording
a final plat of property within the Project Site, signing this Agreement, or completing an
identifiable segment of Public Improvements not subject to the platting requirements of
the City, a request for aContract Progress Payment when an identifiable segment of
Public Improvements has been completed. Documentation of cost and completion shall
be forwarded to the Authority. The Authority, at its expense, shall hire a certified public
accountant to calculate the amount due Developer and shall prepare and submit, within a
reasonable time,a report to the Authority Boardand send a copy to the City Managerof
the City. Requests for Contract Progress Payments shall be submitted only when an
identifiable segment of Public Improvements has been completed and shall be submitted
no more often than once every sixty (60) days. If the Authority does not have sufficient
funds to pay any Contract Progress Payment within 30 days of the date the certified
public accountant’s report is received by the Authority Board,the Developer shall be
deemed to have advanced such amount to the Authority as of the date actually expended
by the Developer. Interest (as calculated pursuant to Subsection 6.1(F)) on each
Developer Advance made pursuant to this subsection shall accrue from the date the
Developer expended the funds and shall accrue for a maximum period of five (5) years
from such date. At such time as funds are available to pay all or any portion of the
Developer Advances made hereunder, the Authority, at its expense, shall hire a certified
public accountant to calculate the amount due to the Developer and shall prepare and
submit a report to the Authority Boardand send a copy to the City Manager of the City
certifying (1)the amount due to the Developer for the Developer Advances being repaid,
with interest calculated thereon as specified herein and (2)that funds are available to
make such payment. Upon receipt of such report, the Authority Boardshall promptly
authorize and make payment to the Developer.
(C)If, upon completion of the Public Improvements and conveyance of the Public
Improvements to the Authority or the City, as applicable, the Authority does not have
sufficient funds to reimburse to Developer the unpaid balance of the Project Costs,
Developer shall be deemed to have advanced to the Authority an amount equal to the
difference between (i)the amount of the Project Costs which has been previously paid by
the Authority to Developer and (ii)the final cost of the Public Improvements as
evidenced by documentation approved by the Authority Boardin accordance with
Section 4.3.
(D)Each Developer Advance shall be evidenced by a certificate in the form
attached hereto as Exhibit C.
(E)The Authority shall begin repaying the Developer Advances, and shall
continue such repayment until repaid in full, on the earliest date that funds are available
from any of the following sources.
(1)proceeds of any applicable bank loan;
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(2)proceeds from the sale of applicable Authority Bonds; or
(3)PledgedAvailable Tax Increment.
(F)Subject to the limitations described in Section 6.1(B) hereof, interest on each
Developer Advance shall accrue at the prime rate of JPMorgan Chase Bank. Interest
shall be calculated on the basis of a year of 360 days and the actual days elapsed
(including the first day but excluding the last day) occurring in the period for which such
interest is payable, unless such calculation would result in a usurious rate, in which case
interest shall be calculated on the per annum basis of a year of 365 or 366 days, as
applicable, and the actual days elapsed (including the first day but excluding the last day).
In no case shall the interest rate exceed one percent per month.
(G)The Authority’s obligation to pay the Developer Advances or reimburse the
Developer for Project Costs is limited to any Pledged Available Tax Increment. The
rights of Developer in and to the Pledged Available Tax Incrementgranted herein are
subject only to (i)the rights of any holders of bonds, notes or other obligations that have
been heretofore or are hereafter issued by the City or any other participating taxing unit
that are payable from and secured by a general levy of ad valorem taxes throughout the
taxing jurisdiction of the City or any other participating taxing unit, (ii)the rights of any
of the holders of bonds and notes that are hereafter issued or incurred by the Authority
and which are secured by a pledge of the Tax Increment Revenue Fund, and (iii)the
rights of any of the holders of notes that are hereafter issued or incurred by the Authority,
which are secured by a pledge, all or a part, of the Tax Increment Revenue Fund,the
proceeds of which are used solely to fund the annual operating and administration budget
of the Authorityapproved by the Authority Boardand the City Council of the City.
Except in the event that (i) the cumulative average sales price (documented at the time
Developer sells a finished home to aninitial end-user) of all homes within the Project
Site is less than $175,000, or(ii) sufficient tax increment increase does not occur within
the term of the Zone or within the Project Site to generate sufficient revenue to repay the
Developer Advance(s), it shall be the obligation of the Authority to repay the Developer
Advances and accrued interest thereon as set forth in this Agreement from the Pledged
Available Tax Incrementuntil such time as the Developer Advances and accrued interest
thereof incurred pursuant to this Agreementhave been fully repaid or provision for
payment thereon to Developer shall have been made in accordance with this Agreement.
The Developer Advances constitute a special obligation of the Authority payable solely
from the Pledged Available Tax Incrementas and to the extent provided in this
Agreement. The Developer Advances do not give rise to a charge against the general
credit or taxing powers of the Authority, the Zone, the City, the County or any other
Taxing Unit and is not payable except as provided in this Agreement. Developer, its
successors and assigns, shall not have the right to demand payment thereof out of any
funds of the Authority other than the Pledged Available Tax Increment or sources
described in Section 6.1(E).
(H)The Authority will evaluate and consider bond issues to reimburse the
Developer upon the following circumstances:
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(1)Projected incremental revenue generates 1.25 times coverage for the bonds
over projected annual debt service(or such lesser coverage if
recommended to the Authority by its financial advisor);
(2)Projected incremental revenue will be calculated by multiplying estimated
or certified incremental value from HCADby the participant(s) tax rate(s)
divided by 100 times one minus a reasonable historical tax collection
factor times one minus the City set-aside percentage;
(3)A reserve fund equal to maximum annual debt service must be funded
from the bond proceeds;
(4)Adequate cash or capitalized interest must be set aside to assure payment
of the bonds through the date of the next increment payment; and
(5)The minimum bondsize will be that size that after funding the Reserve
Fund, any capitalized interest and any costs of issuance will allow for a
reimbursement to the developer of at least $1.5 million plus developer
interest. Reimbursements to multiple developers may be aggregated in a
single bond issue to achieve the minimum bond size.
(I)The Authority shall not issue obligations in accordance with this Article
unless the resulting debt service requirements on all Zoneobligations may be paid in full
when due from all money then on deposit in or thereafter required to be deposited to the
Property Accountduring the term of such Zone obligations, assuming that (a)the rates at
which property taxes are levied by all taxing units required to make deposits to the Tax
Increment Fund do not change from the rates at which they most recently levied property
taxes, (b)the assessed value of taxable property (net of exemptions) within the Project
Sitedoes not change from the amount then most recently estimated or certified by
HCAD, (c)all amounts deposited (or required to be deposited) to the Property Account
bear interest at the City’s investment rateuntil expended, (d)proceeds of such obligations
are deposited to and set aside in the Property Accountas capitalized interest in the
amount requested by the Developer and approved by the City Managerof the City, and
(e)the Property Accountis expended in each year to pay administrative expenses of the
Zone in an amount equal to the product of (i)the total amount of such expenses budgeted
in the Zone’s most recent operating budget and (ii)a fraction, the numerator of which is
the current Tax Increment attributable to the Project Siteand the denominator of which is
the current Tax Increment for the Zone.
(J)The Authority shall provide to Developer, upon the written request of
Developer, and on the earliest date such information is available after the date of such
request, certified copies of all statements of revenue attributable tothe Project Site and
the source of such revenue of the Zoneand of the Authority the intended use of which is
to verify the availability of funds for payment of the Project Costs or Developer
Advances, if applicable, pursuant to this Section.
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(K)The Zoneandthe Authority shall use commercially reasonable effortsto
cause each Taxing Unit to collect all ad valorem taxes due on property located within the
Zone and shall use commercially reasonable effortsto cause such Taxing Units to deposit
all tax increments due with the City for transfer to the Tax Increment Revenue Fund
pursuant to the Tri-Party Agreement.
ARTICLE 7
INSURANCE; RELEASE
7.1Insurance. With no intent to limit any contractor’s liability or obligation for
indemnification, the Developer shall require thateach contractor providing work or service on
the Public Improvements provide and maintain certain insurance in full force and effect at all
times during the construction of the Public Improvements and shall require that the City, the
Authority, and the Zone are named as additional insured’s under such contractor’s insurance
policies.
The insurance, at a minimum, must include the following coverage’s and limits of
liability:
CoverageLimit of Liability
Worker’s CompensationStatutory
Employer’s LiabilityBodily Injury by Accident $100,000 (each accident)
Bodily injury by Disease $500,000 (policy limit)
Bodily injury by Disease $100,000 (each employee)
Comprehensive General Liability: Bodily Injury and Property Damage, Combined
Including Broad Form Coverage, Limits of $500,000 each Occurrence and $1,000,000
Contractual Liability, Bodily and Aggregate
Personal Injury, and Completed
Operations (for a period of one year after
completion of work)
Automobile Liability Insurance (for $500,000 Combined Single Limit per Occurrence
automobiles used in performing under
this Agreement, including Employer’s
Non Ownership and Hired Auto
Coverage)
Professional Liability Coverage (for $500,000 per occurrence $1,000,000 aggregate
professional service contract only)
Defense costs are excluded from the face amount of the policy. Aggregate Limits are per
12 month policy period unless otherwise indicated.
If the amount of any contract awarded by Developer to construct the Public Improvements shall
exceed $1,000,000, Developer shall contract with the contractor to maintain Commercial General
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Liability coverage and the Auto Liability coverage for at least twice the combined minimum
limits specified above.
th
The amounts of the insurance required herein shall be reviewed on the fifth (5) anniversary date
th
of this Agreement and each fifth (5) year thereafter until the construction of the Project is
completed and shall be increased, if necessary, so that the amount of such coverage is at all times
generally equal to the limitsdescribed herein measured in year 2006 dollars.
(A)Form of Policies. The Authority Boardmay approve the form of the
insurance policies, but nothing the Authority Boarddoes or fails to do relieves Developer
of its obligation to provide the required coverage under this Agreement. The Authority
Board’s actions or inactions do not waive the Zone’s or Authority’s rights under this
Agreement.
(B)Issuers of Policies. The issuer of each policy shall have a certificate of
authority to transact insurance business in Texas or a Best’s rating of at least A and a
Best’s Financial Size Category of Class VI or better, according to the most current
edition Best’s Key Rating Guide, Property Casualty United States.
(C)Insured Parties. Each policy, except those for Workers’ Compensation,
Employer’s Liability, and Professional Liability, must name the Authority, its officers,
agents and employees as additional insured parties on the original policy and all renewals
or replacements.
(D)Deductibles. Developer shall be responsible for and bear (or shall contract
with each applicable contractor to bear and assume) any claims or losses to the extent of
any deductible amounts and waives (and shall contract with each contractor to waive) any
claim it may have for the same against the Authorityor Zone, its officers, agents, or
employees.
(E)Cancellation. Each policy must state that it may not be canceled, materially
modified, or non-renewed unless the insurance company gives the Authority 30 days’
advance written notice. Developer shall (and shall contract with each contractor to) give
written notice to the Authority within five days of the date on which total claims by any
party against such person reduce the aggregate amount of coverage below the amounts
required by this Agreement. In the alternative, the policy may contain an endorsement
establishing a policy aggregate for the particular Public Improvements or location subject
to this Agreement.
(F)Subrogation. Each policy must contain an endorsement to the effect that the
issuer waives any claim or right of subrogation to recover against the Authority, the
Zone, its officers, agents, or employees.
(G)Primary Insurance Endorsement. Each policy, except Workers’
Compensation and Professional Liability (if any), must contain an endorsement that the
policy is primary to any other insurance available to the additional insured with respect to
claims arising under this Agreement.
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(H)Liability for Premium. Developer shall pay (or shall contract with contractors
to pay) all insurance premiums for coverage required by this Section, and the Authority
or Zone shall not be obligated to pay any premiums.
(I)Subcontractors. Notwithstanding the other provisions of this Section, the
amount of coverage contracted to be provided by subcontractors shall be commensurate
with the amount of the subcontract, but in no case less than $500,000 per occurrence.
Developer shall provide (or shall contract with contractors to provide) copies of insurance
certificates to the Authority.
(J)Proof of Insurance. Promptly after the execution of this Agreement and from
time to time during the term of this Agreement at the request of the Authority, Developer
shall furnish the Authority with certificates of insurance maintained by Developer in
accordance with this Section. If requested in writing by the Authority, Developer shall
furnish the City with certified copies of Developer’s actual insurance policies. If
Developer does not comply with the requirements of this Section, the Authority, at its
sole discretion, may (1) suspend performance by the Authority hereunder and begin
procedures to terminate this Agreement for default or (2) purchase the required insurance
with Authority or Zone funds and deduct the cost of the premiums from amounts due to
Developer under this Agreement. The Authorityshall never waive or be estopped to
assert its right to terminate this Agreement because of its acts or omissions regarding its
review of insurance documents.
Indemnification and Release
7.2.
DEVELOPER SHALL DEFEND, INDEMNIFY, AND HOLD THE AUTHORITY,
THE CITY AND THE ZONE, THEIR AGENTS, EMPLOYEES, OFFICERS, AND LEGAL
REPRESENTATIVES (COLLECTIVELY, THE “INDEMNIFIED PERSONS”) HARMLESS
FOR ALL CLAIMS, CAUSES OF ACTION, LIABILITIES, FINES, AND EXPENSES
(INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES, COURT
COSTS, AND ALL OTHER DEFENSE COSTS AND INTEREST) FOR INJURY, DEATH,
DAMAGE, OR LOSS TO PERSONS OR PROPERTY SUSTAINED IN CONNECTION WITH
OR INCIDENTAL TO PERFORMANCE UNDER THIS AGREEMENT, INCLUDING,
WITHOUT LIMITATION, THOSE CAUSED BY:
(A)DEVELOPER’S AND/OR ITS AGENTS’, EMPLOYEES’, OFFICERS’,
DIRECTORS’, CONTRACTORS’, OR SUBCONTRACTORS’ (COLLECTIVELY,
“DEVELOPER’S”) ACTUAL OR ALLEGED SOLE AND/OR CONCURRENT
NEGLIGENCE OR INTENTIONAL ACTS; ;
(B)THE INDEMNIFIED PERSONS’ AND DEVELOPER’S ACTUAL OR
ALLEGEDCONCURRENT NEGLIGENCE AND/OR GROSS NEGLIGENCE,
WHETHER DEVELOPER IS IMMUNE FROM LIABILITY OR NOT; AND
(C)THE INDEMNIFIED PERSONS’ AND DEVELOPER’S ACTUAL OR
ALLEGED STRICT PRODUCTS LIABILITY OR STRICT STATUTORY LIABILITY,
WHETHER DEVELOPER IS IMMUNE FROM LIABILITY OR NOT.
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IT IS THE EXPRESSED INTENTION OF THE PARTIES HERETO THAT THE
INDEMNIFICATION PROVIDED FOR IN THIS SECTION IS AN INDEMNITY BY THE
DEVELOPER TO INDEMNIFY AND PROTECT THE INDEMNIFIED PERSONS FROM
THE CONSEQUENCES OF THE INDEMNIFIED PERSONS’ OWN NEGLIGENCE,
INCLUDING GROSS NEGLIGENCE, WHERE THAT NEGLIGENCE IS A CONCURRING
CAUSE OF THE RESULTING INJURY, DEATH OR DAMAGE. FURTHERMORE, THE
INDEMNITY PROVIDED FOR IN THIS PARAGRAPH SHALL HAVE NO APPLICATION
TO ANY CLAIM, LOSS, DAMAGE, CAUSE OF ACTION, SUIT AND LIABILITY WHERE
THE INJURY, DEATH OR DAMAGE RESULTS FROM THE SOLE NEGLIGENCE OF THE
INDEMNIFIED PERSONS UNMIXED WITH THE FAULT OF ANY OTHER PERSON OR
ENTITY.
THE INDEMNITY PROVIDED FOR IN THIS SECTION7.2 SHALL SURVIVE THE
TERMINATION OR EXPIRATION OF THIS AGREEMENT.
If an Indemnified Person or Developer receives notice of any claim or circumstance
which could give rise to an indemnified loss, the receiving party shall give written notice to the
other party within 30-days. The notice must include a description of the indemnification event in
reasonable detail, the basis on which indemnification may be due, and the anticipated amount of
the indemnified loss. This notice shall not estop or prevent an Indemnified Person from later
asserting a different basis for indemnification or a different amount of indemnified loss than that
indicated in the initial notice. If an Indemnified Person does not provide this notice within the
30-day period, it does not waive any right to indemnification except to the extent that Developer
is prejudiced, suffers loss, or incurs expense because of the delay.
For those matters for which the Developer has the obligation to defend an Indemnified
Person pursuant to this Section7.2, Developer shall assume the defense of the claim at its own
expense with counsel chosen by it that is on the approved list established by the Texas Municipal
League or that is otherwise approved by the City. Within 10 days after receiving written notice
of the indemnification request, Developer shall advise the Indemnified Person as to the chosen
counsel. If Developer does not properly notify the Indemnified Persons as required above, the
Indemnified Person shall assume and control the defense, and all defense expenses actually
incurred by it shall constitute an indemnified loss, which must be paid by the Developer within
thirty (30) days of receipt of an invoice from an Indemnified Person. Such indemnified loss shall
bear interest at the rate, but not the time, established in Section6.1 (F) from the due date noted in
the invoice until the date of payment. Should the Developer fail to timely pay such amount, the
Authority may, in its sole discretion, withhold the amount due, including accrued interest, from
future Contract Progress Payments.
If Developer defends a claim against any Indemnified Person, the Indemnified Person
may retain separate counsel at the sole cost and expense of such Indemnified Person to
participate in (but not control) the defense and to participate in (but not control) any settlement
negotiations. Developer may not settle the claim without the consent or agreement of the
Indemnified Person, unless such settlement is at no cost to the Indemnified Person and no
judgment is entered against any Indemnified Person.
15
HOU:3372249.1
DEVELOPERRELEASES EACH INDEMNIFIED PERSON FROM ALL
LIABILITY FOR INJURY, DEATH, DAMAGE, OR LOSS TO PERSONS OR
PROPERTY SUSTAINED IN CONNECTION WITH OR INCIDENTAL TO
PERFORMANCE UNDER THIS AGREEMENT, EVEN IF THE INJURY, DEATH,
DAMAGE, OR LOSS IS CAUSED BY THE INDEMNIFIED PERSON’S SOLE OR
CONCURRENT NEGLIGENCE AND/OR THE INDEMNIFIED PERSON’S STRICT
PRODUCTS LIABILITY OR STRICT STATUTORY LIABILITY; PROVIDED,
HOWEVER, THIS RELEASE SHALL HAVE NO APPLICATION TO AN
INDEMNIFIED PERSON’S FAILURE TO PAY MONIES OWED PURSUANT TO THIS
AGREEMENT.
FROM AND AFTER THE DATE OF THIS AGREEMENT, DEVELOPER SHALL
REQUIRE ALL CONTRACTORS ENGAGED BY IT TO CONSTRUCT PUBLIC
IMPROVEMENTS (AND THEIR SUBCONTRACTORS) TO RELEASE AND
INDEMNIFY THE INDEMNIFIED PERSONS TO THE SAME EXTENT AND IN THE
SAME FORM AS ITS RELEASE OF AND INDEMNITY TO THE INDEMNIFIED
PERSONS HEREUNDER.
THE DEVELOPER SHALL REQUIRE ALL GENERAL CONTRACTORS TO
POST PAYMENT AND PERFORMANCE BONDS IN THE AMOUNT OF THE
PROJECT COST AND ONE YEAR MAINTENANCE BONDS AS DEEMED
APPROPRIATE BY THE AUTHORITY.
ARTICLE 8
DEFAULT
8.1Default.
(A)If the Authority or the Zone does not perform its obligations hereunder in
compliance with this Agreement in all material respects, in addition to the other rights
given the Developer under this Agreement, the Developer may enforce specific
performance of this Agreement for any such default if such default is not cured or is not
commenced and diligently pursued within thirty (30) days after receipt by the Authority
and the Zone of a written notice detailing the event ofdefault. Failure of a project to
generate sufficient tax increment increase to repay Developer Advances is not a default
on the part of the Authority or the Zone.
(B)In the event the Developer completes the Public Improvements and the Project
but does not otherwise perform its obligations hereunder as provided in Article4 in
compliance with this Agreement, in addition to the other rights and remedies the
Authority and the Zone may have under this Agreement or in law or equity, the Authority
and/or the Zonemay enforce specific performance or seek actual damages incurred for
any such default if such default is not cured within thirty (30) days after receipt by
Developer of a written notice of default or such cure is not commenced within ten (10)
days after receipt by Developer of a written notice of default and thereafter diligently
prosecuted to completion as determined in the discretion of the Authority.
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ARTICLE 9
GENERAL
9.1Inspections, Audits. The Developer agrees to keep such operating records
relating to the Public Improvements as may be required by the Authority, or by state and federal
law or regulation for a period not to exceed four (4) years after completion unless otherwise
required by law. The Developer shall allow the Authority and the Zoneaccess to documents and
records in the Developer’s possession, custody or control that the Authority deems necessary to
assist the Authority in determining the Developer’s compliance with this Agreement.
9.2Developer Operations and Employees. No personnel supplied or used by the
Developer in the performance of this Agreement shall be deemed employees, agents or
contractors of the Authority, the Zone or the City for any purpose whatsoever. The Developer
shall be solely responsible for the compensation of all such personnel, for withholding of
income, social security and other payroll taxes and for the coverage of all worker’s compensation
benefits. Under no circumstance shall the Authority, the Zone, or the City be deemed
responsible for compensation of the above.
9.3Personal Liability of Public Officials. To the extent not limited by State law, no
director, officer, employee or agent of the Zoneor the Authority, and no officer, employee or
agent of the City, shall be personally responsible for any liability arising under or growing out of
the Agreement.
9.4Notices. Any notice sent under this Agreement (except as otherwise expressly
required) shall be written and mailed via certified mail, return receipt requested, or sent by
electronic or facsimile transmission confirmed by mailing written confirmation via certified mail,
return receipt requested at substantially the same time as such electronic or facsimile
transmission, or personally delivered to an officer of the receiving party at the following
addresses:
CITY
City Manager
City of LaPorte
604 West Fairmont Parkway
La Porte, Texas 77571
FAX: 281-842-1259
with a copy to:
City Attorney
City of LaPorte
604 West Fairmont Parkway
La Porte, Texas 77571
FAX: (281)471-2047
17
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ZONE
Reinvestment Zone Number One, City of LaPorte,
c/o City of La Porte
604 West Fairmont Parkway
La Porte, Texas 77571
Attn: _____________
FAX: (281)471-2047
AUTHORITY
La Porte Redevelopment Authority
c/o City of La Porte
604 West Fairmont Parkway
La Porte, Texas 77571
Attn: _____________
FAX: (281)471-2047
DEVELOPER
Beazer Homes Texas, LP
10235 West Little York, Suite 200
Houston, Texas 77040
Attn: Jeff Anderson
FAX:
Each party may change its address by written notice in accordance with this Section. Any
communication addressed and mailed in accordance with this Section shall be deemed to be
given when so mailed, any notice so sent by electronic or facsimile transmission shall be deemed
to be given when receipt of such transmission is acknowledged, and any communication so
delivered in person shall be deemed to be given when receipted for by, or actually received by,
the City, the Zone, the Authority or the Developer, as the case may be.
9.5Amendments and Waivers. Any provision of this Agreement may be amended or
waived if such amendment or waiver is in writing and is signed by the Zone, the Authority and
the Developer. No course of dealing on the part of the Developer,nor any failure or delay by the
Developer with respect to exercising any right, power or privilege of the Developer under this
Agreement shall operate as a waiver thereof, except as otherwise provided in this Section.
9.6Successors and Assigns. All covenants and agreements contained by or on behalf
of the Authority and the Zone in this Agreement shall bind their successors and assigns and shall
inure to the benefit of the Developer and its successors and assigns. The Authority and the Zone
may assign its rights and obligations under this Agreement or any interest herein, with the prior
written consent of the Developer. The Developer may sell or otherwise transfer the Project with
the prior written consent of the Authority and the Zone. Provided, however,any such purchaser
or assignee must specifically assume all of the obligations of the Developer hereunder;
notwithstanding, if the Developer is in compliance with this Agreement prior to the assignment,
the Developer may retain the right to be reimbursed for actual costs of Project Costs, which are
then accrued and vested in the Developer. If such assignment of the obligations by the
Developer hereunder is effective, the Developer shall be deemed released from such obligations.
18
HOU:3372249.1
If any assignment of the obligations by the Developer hereunder is deemed ineffective or invalid,
the Developer shall remain liable hereunder. Nothing in this section shall be construed so as to
prevent the Developer from selling any portion of the Project for which a final plat has been
approved and recorded in the records of the county clerk.
9.7Exhibits; Titles of Articles, Sections and Subsections. The exhibits attached to
this Agreement are incorporated herein and shall be considered a part of this Agreement for the
purposes stated herein, except that in the event of any conflict between any of the provisions of
such exhibits and the provisions of this Agreement, the provisions of this Agreement shall
prevail. All titles or headings are only for the convenience of the parties and shall not be
construed to have any effect or meaning as to the agreement between the parties hereto. Any
reference herein to a Section or Subsection shall be considered a reference to such Section or
Subsection of this Agreement unless otherwise stated. Any reference herein to an exhibit shall
be considered a reference to the applicable exhibit attached hereto unless otherwise stated.
9.8Construction. This Agreement is a contract made under and shall be construed in
accordance with and governed by thelaws of the United States of America and the State of
Texas.
9.9Venue. All parties hereby irrevocably agree that any legal proceeding arising out
of or in connection with this Agreement shall only be brought in the District Courts of Harris
County, Texas or in the United States District Court for the Southern District of Texas, in
Houston, Texas.
9.10Severability. All parties agree that should any provision of this Agreement be
determined to be invalid or unenforceable, such determination shall not affect any other term of
this Agreement, which shall continue in full force and effect.
9.11No Third Party Beneficiaries. This Agreement shall not bestow any rights upon
any third party, but rather, shall bind and benefit the Parties hereto only.
9.12Authority to EnterContract. Each party has the full power and authority to enter
into and perform this Agreement, and the person signing this Agreement on behalf of each party
has been properly authorized and empowered to enter into this Agreement. The persons
executing this Agreement hereby represent that they have authorization to sign on behalf of their
respective corporations, or limited partnerships.
9.13No Partnership. Nothing herein contained shall be construed or held to make the
Parties hereto partners in the conduct of any business.
9.14Entire Agreement. This written agreement represents the final agreement
between the parties, unless later amended in writing and signed by the parties and may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the
parties. There are no unwritten oral agreements between the parties.
9.15Ambiguities. In the event of any ambiguity in any of the terms of this Agreement,
it shall not be construed for or against any party hereto on the basis that such party did or did not
author the same.
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HOU:3372249.1
9.16Non-Waiver. Failure of either party hereto to insist on the strict performance of
any of the agreements contained herein or to exercise any rights or remedies accruing hereunder
upon default or failure of performance shall not be considered a waiver of the right to insist on
and to enforce by an appropriate remedy, strict compliance with any other obligation hereunder
or to exercise any right or remedy occurring as a result of any future default or failure of
performance.
9.17Multiple Originals. It is understood and agreed that this Agreement may be
executed in a number of identical counterparts each of which shall be deemed an original for all
purposes.
9.18Term. This Agreement shall be in force and effectfrom the date of execution
hereof for a term expiring on the later of (i)December31 in the year following completion of the
Public Improvements pursuant to Section4.3 hereof or (ii)the date the Developer Advances
have been repaid in full. It is expressly understood and agreed that Section7.2 shall not expire
but shall remain in full force and effect regardless of the termination of this Agreement. If the
Authority is dissolved, the Tri-Party Agreementrequires that the City shall make satisfactory
arrangements to provide for the payment of the obligations to the Developer of the Authority
hereunder.
9.19Approval by the Parties. Whenever this Agreement requires or permits approval
or consent to be hereafter given by any of the parties, the parties agree that such approval or
consent shall not be unreasonably withheld or delayed.
9.20Additional Actions. The Parties agree to take such actions, including the
execution and delivery of such documents, instruments, petitions and certifications as may be
necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this
Agreement and to aid and assist each other in carrying out said terms, provisions and intent.
\[The remainder of this page is intentionally left blank.\]
20
HOU:3372249.1
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
executed as of the _____ day of ____________________, 2013.
CITY OF LAPORTE, TEXAS
By:
Name: Louis R. Rigby
Title: Mayor
ATTEST:
By:
Name:Patrice Fogarty
Title: City Secretary
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ ,known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
2013.
Notary Public in and for
The State of Texas
(SEAL)
S-1
REINVESTMENT ZONE NUMBER ONE,
CITY OF LAPORTE, TEXAS
By:
Name:
Title:
ATTEST:
By:
Name:
Title:
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ , known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
2013.
Notary Public in and for
The State of Texas
(SEAL)
2
HOU:3372249.1
LA PORTE REDEVELOPMENT AUTHORITY
By:
Name:
Title:
ATTEST:
By:
Name:
Title:
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ , known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
2013.
Notary Public in and for
The State of Texas
(SEAL)
3
HOU:3372249.1
BEAZER HOMES TEXAS, LP
By:
Name:
Title:
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ , known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for thepurposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
2013.
Notary Public in and for
The State of Texas
(SEAL)
4
HOU:3372249.1
EXHIBIT A
PROJECT SITE
A-1
HOU:3372249.1
EXHIBIT B
PUBLIC IMPROVEMENTS
B-1
HOU:3372249.1
C-1
HOU:3372249.1
C-2
HOU:3372249.1
EXHIBIT C
CERTIFICATE OF ADVANCE
This Certificate is issuedunder that certain Development Agreement (the “Development
Agreement”),by and among the City of La Porte, Texas (the “City”),the LaPorte
Redevelopment Authority (the “Authority”), Reinvestment Zone Number One, City of LaPorte,
Texas(the “Zone”), and Beazer Homes Texas, LP (the “Developer”),dated ______________,
2013. Capitalized terms used in this Certificate shall have the meaning provided for in the
Development Agreement.
This Certificate evidences a Developer Advance under the Development Agreement in
the amount of $_______________ for the \[describe the project category and nature of work
completed\].
Interest on the Developer Advance evidenced by this Certificate shall accrue at the prime
rate of JPMorgan Chase Bank as described in the DevelopmentAgreement for the period
described in 6.1(B) of the Development Agreement and shall be payable in accordance with the
Development Agreement.
By Developer’s execution of this Certificate, Developer represents that it has made the
expenditures and completedthe work described in this Certificate. Copies of the relevant
invoices and other appropriate documentation are attached to this Certificate.
By the Authority’s execution of this Certificate, the Authority indicates its approval of
the expenditures and work described in this Certificate and its approval of the matters set forth in
this Certificate and recognizes its obligation to repay such Developer Advance together with
interest pursuant to the Development Agreement.
C-3
HOU:3372249.1
AGREED TO this ______ day of _______________, 20__.
LA PORTE
REDEVELOPMENT AUTHORITY
By:
Name:
Title:Chairman,Board of Directors
ATTEST:
By:
Name:
Title:Secretary, Board of Directors
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ , known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
20__.
Notary Public in and for
The State of Texas
(SEAL)
C-4
HOU:3372249.1
REINVESTMENT ZONE NUMBER ONE,
CITY OF LAPORTE
By:
Name:
Title:Chairman,Board of Directors
ATTEST:
By:
Name:
Title:Secretary, Board of Directors
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ , known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
20__.
Notary Public in and for
The State of Texas
(SEAL)
C-5
HOU:3372249.1
BEAZER HOMES TEXAS, LP
By:
Name:
Title:
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
BEFORE ME, the undersigned authority, on this day personally appeared
__________________________ ,known to me to be the person whose name is subscribed to the
foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the ____ day of _________,
20__.
Notary Public in and for
The State of Texas
(SEAL)
C-6
HOU:3372249.1
REQUEST FOR CITY COUNCILAGENDA ITEM
Budget
Agenda Date Requested: February 10,2014
Source of Funds:
Requested By: Scott D. Livingston
Account Number:
Department: Administration/Economic Development
Amount Budgeted:
Report: Resolution: Ordinance: X
Amount Requested:
Exhibit:Copy of the TIRZ Board’s Minutes from Sept. 18,
Budgeted Item:YES NO
2013Recommending Expansion of TIRZ #1
Exhibit: Proposed Ordinance to Approve an Expansionof
TIRZ #1 in La Porte
Exhibit:Metes and Bounds of the Proposed Expansion Area
SUMMARY & RECOMMENDATIONS
NOTE: This item was postponed at the October 28, 2013 Council meeting until December
9. This item has been unchanged from the information that appeared in the October
th
agenda.The public hearing was opened and closed during the October 28meeting and
therefore, the items are ready for Council consideration and action.The developer has
requested that all items related to this development be postponed until February 10, 2014.
The purpose of this TIRZ enlargement is to provide for the construction of public utilities and
storm water detention facilities to accommodate the proposed residential and commercial
development project within a 33 acres tract located at the northwest corner of Spencer Highway
and Sens Road. The tax increment revenue to fund the public improvements will come from the
increase in taxable value in the enlargement area of the Zone.
According to estimates, the TIRZ project costs (those development costs that will be reimbursed
to the developer from TIRZ revenues) are $1,741,849. The project is projected to create over
$25 million in taxable value and $2.5 million in TIRZ revenues through the end of the term of
the TIRZ in 2030.
This is the first step in the process for formally enlarge the TIRZ. The companion item,
approving the revised Project Plan, is set for a Public Hearing on this agenda as well. The
proposed enlargement and TIRZ Project Plan amendment were presented to the TIRZ board in
September and the TIRZ board recommended approval by City Council.
Action Required by the City Council:
Consider approval or other action of an ordinance that expands TIRZ #1 in La Porte, Texas.
Approved for the City CouncilAgenda
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCILAGENDA ITEM
Budget
Agenda Date Requested: February 10,2014
Source of Funds:
Requested By: Scott D. Livingston
Account Number:
Department: Administration/Economic Development
Amount Budgeted:
Report: Resolution: Ordinance: X
Amount Requested:
Exhibit:Revised TIRZ ProjectPlan
Budgeted Item:YES NO
Exhibit: Metes and Bounds of the AreaProposedto be
Added to the TIRZ
Exhibit: Proposed Ordinance to Approve and Adopt
the Revised TIRZ ProjectPlan
SUMMARY & RECOMMENDATIONS
NOTE: This item was postponed at the October 28, 2013 Council meeting until December
9. This item has been unchanged from the information that appeared in the October
th
agenda. The public hearing was opened and closed during the October 28meeting and
therefore, the items are ready for Council consideration and action.However, the
developer has requested that this item be postponed until February 10, 2014.
The purpose of this TIRZ Plan Amendment is to provide for the construction of public utilities
and storm water detention facilities to accommodate the proposed residential and commercial
development project within the proposed enlargement area of the Zone. The enlargement area is
located at the northwest corner of Spencer Highway and Sens Road. The tax increment revenue
to fund the public improvements will come from the increase in taxable value in the enlargement
area of the Zone.
According to estimates, the TIRZ project costs (those development costs that will be reimbursed
to the developer from TIRZ revenues) are $1,741,849. The project is estimatedto create over
$25 million in taxable value and $2.5 million in TIRZ revenues through the end of the term of
the TIRZ in 2030.
The amendment was presented to the TIRZ board in September 2013and the TIRZ board
recommended approval by City Council.
The public hearing notice was published in the Houston Chronicle on Monday, October 21,
2013, which met the requirement for 7 days notice. The public hearing was opened, held, and
closed by the City Council on Monday, October 28, 2013.
Action Requiredby the City Council:
Consider approval or other action of an Ordinanceto accept and adopt the revised TIRZ Project
Plan as recommended by the TIRZ Board.
Approved for the City CouncilAgenda
Corby D. Alexander, City Manager Date
TAX INCREMENT REINVESTMENT ZONE, NUMBER ONE
CITY OF LA PORTE
2013 AMENDMENT TO THE PROJECT PLAN
AND REINVESTMENT ZONE FINANCING PLAN
SEPTEMBER 10, 2013
HAWES HILL CALDERON
1 of 6
TABLE OF CONTENTS
Page
PROJECT PLAN
I. Existing uses and conditions of real property within the area of the proposed Zone 3
II. Proposed changes in zoning ordinance, master plan of the municipality, building codes 4
and other municipal ordinances
III. List of estimated non-project cost items 4
REINVESTMENT ZONE FINANCING PLAN
I. A detailed list describing the estimated projects of the Zone, including administrative 4
expenses
II. A statement listing the kind, number and location of all proposed public works or 5
public improvements in the Zone
III. The estimated amount of bonded indebtedness to be incurred 5
IV. The time when related costs or monetary obligations are to be incurred 5
V. A description of the methods of financing all estimated project costs and the expected 5
sources of revenue to finance or pay project costs, including the percentage of tax
increment to be derived from the property taxes of each taxing unit that levies taxes
on real property in the Zone
VI. The current total appraised value of taxable real property in the Zone 5
VII. The estimated captured appraised value of the Zone during each year of its existence 5
VIII. Duration of the Zone 6
IX. Schedule A 7
X. Schedule B 8
XI. Schedule C and D 9
2 of 6
2013 AMENDMENT
PROJECT PLAN
I.EZ
XISTING USES AND CONDITIONS OF REAL PROPERTY WITHIN THE AREA OF THE ONE
Tax Increment Reinvestment Zone Number One, City of La Porte generally
located along the east and west side of State Highway 146 south of Fairmont Parkway. The Zone also
includes property near Sylvan Beach Park. Existing development within the Zone consists of residential,
commercial, and light industrial development. The below map shows existing conditions of the Zone.
As also depicted in the map, the Zone is proposed for enlargement and will include approximately 33.4
acres of land at the northwest corner of Spencer Highway and Sens Road. The enlargement area will be
developed for residential and commercial use.
The purpose of this Plan Amendment is to provide for the construction of public utilities and storm
water detention facilities to accommodate the development within the proposed enlargement area of
the Zone. The tax increment revenue to fund the public improvements will come from the increase in
taxable value in the enlargement area of the Zone.
3 of 6
II.P,,
ROPOSED CHANGES IN ZONING ORDINANCES THE MASTER PLAN OF THE MUNICIPALITY BUILDING CODES AND
OTHER MUNICIPAL ORDINANCES
There are no proposed changes to any city ordinance, master plan or building codes.
III. L-
IST OF ESTIMATED NONPROJECT COSTS
Estimated Non-Project Costs
Project Estimated Cost
1. Residential Public $ 169,568
Utilities & Drainage
Infrastructure (30%)
2.Residential Street $ 413,964
3.Engineering & Testing
for Above Items $ 105,036
TOTAL $ 688,568
IV. There will be no persons dislocated as a result of this plan amendment.
REINVESTMENT ZONE FINANCING PLAN
I. AZ,
DETAILED LIST DESCRIBING THE ESTIMATED PROJECT COSTS OF THE ONE INCLUDING ADMINISTRATIVE
EXPENSES
Estimated Project Costs
Project Estimated Cost
4. Residential Public $ 395,870
Utility & Drainage
Infrastructure (70%)
5.Detention Including $ 756,240
Land Cost (100%)
6.Commercial Public $ 393,750
Utilities & Drainage
(100%)
7.Engineering & Testing $ 192,989
Above Items (100%)
TOTAL $ 1,741,849
Administrative expenses are anticipated to be negligible as the La Porte Redevelopment Authority
currently manages the Zone under contract with the City of La Porte.
4 of 6
II.S,
TATEMENT LISTING KIND NUMBER AND LOCATION OF ALL PROPOSED PUBLIC WORKS OR PUBLIC
Z
IMPROVEMENTS IN THE ONE
Public improvements in the Zone enlargement area will consist of public utilities, streets, and
storm water detention facilities to serve the new residential and commercial development at
the northwest corner of Spencer Highway and Sens Road.
III.EFS
CONOMIC EASIBILITY TUDY
This plan amendment is found to be economically feasible as provided in the financial exhibits to
this plan amendment (which exhibits constitute an economic feasibility study).
IV.T
HE ESTIMATED AMOUNT OF BONDED INDEBTEDNESS TO BE INCURRED
The cost of the improvements are estimated at $1,741,849 and will be reimbursed through tax
increment and/or La Porte Redevelopment Authority bonds. If bonds are issued, the bonded
indebtedness is estimated to equal to the cost of the improvements plus cost of issuance.
V.T
HE TIME WHEN RELATED COSTS OR MONETARY OBLIGATIONS ARE TO BE INCURRED
The Zone will incur a monetary obligation upon execution of the development agreement with the
developer of the Zone enlargement tract. The Zone will be obligated to reimburse the developer for the
eligible public improvements through increment derived from the development project.
VI. A
DESCRIPTION OF THE METHODS OF FINANCING ALL ESTIMATED PROJECT COSTS AND THE EXPECTED SOURCES OF
,
REVENUE TO FINANCE OR PAY PROJECT COSTS INCLUDING THE PERCENTAGE OF TAX INCREMENT TO BE DERIVED
Z
FROM THE PROPERTY TAXES OF EACH TAXING UNIT THAT LEVIES TAXES ON REAL PROPERTY IN THE ONE
Description of the Methods of Financing
The developer will advance the public improvement costs and be reimbursed through tax increment or
La Porte Redevelopment Authority bonds.
Sources of Tax Increment Revenue:
INCREMENT DEDICATED TO THE ZONE
Taxing Unit Tax Rate Dedicated
City of La Porte 100% of Tax Rate
VII. TZ
HE CURRENT TOTAL APPRAISED VALUE OF TAXABLE REAL PROPERTY IN THE ONE
$1,652,696
The total current market value within the Zone is: .
5 of 6
VIII.TZ
HE ESTIMATED CAPTURED APPRAISED VALUE OF THE ONE DURING EACH YEAR OF ITS EXISTENCE
The estimated captured appraised value of the Zone during each year of its existence is shown in
Schedule C attached to the rear of this document.
IX.DZ
URATION OF THE ONE
The Zone enlargement does not affect the duration of the Zone which is scheduled to terminate in 2030.
6 of 6
73$12,775
Subtotal
$0$12,775
Ώ
B
5
5
5
5
Captured Value (K)
5
2021
5
5
5
5
5
5
5
5
5
5
5
5
Ώ
5-
υ
Home Construction
$0$12,775
Ώ
υ
Captured Value (K)
2020
Ώ-
Home Construction
$0
$12,775
Ώ
υ
Captured Value (K)
2019
Ώ
-
Home Construction
$0$12,775
Ώ
υ
Captured Value (K)
2018
Ώ
-
Residential Buildout Schedule (In Thousands)
LA PORTE TIRZ 1 ZONE ENLARGEMENT
Home Construction
$4,025$12,775
ЍͲЉЋЎ
υ
ВΉЊЌΉЋЉЊЌ
Captured Value (K)
2017
ЋЌ
23
Home Construction
$4,375$8,750
ЍͲЌАЎ
υ
Captured Value (K)
2016
ЋЎ 25
Home Construction
$4,375$4,375
ЍͲЌАЎ
υ
Captured Value (K)
2015
ЋЎ
25
Home Construction
$0$0
Captured Value (K)
2014
-
Home Construction
Њ͵ /ğƦƷǒƩĻķ ǝğƌǒĻ źƭ ƦƩĻƭĻƓƷĻķ źƓ ƷŷƚǒƭğƓķƭ ƚŅ ķƚƌƌğƩƭ͵
Cumulative Captured Value
Residential Project Values
Total Captured Value
II/Ͳ \[\[t
Total Home Sales
SINGLE FAMILY
SCHEDULE A
{ĻĭƷźƚƓ hƓĻ
bƚƷĻʹ
Subtotal
$5,750$14,375
ЎͲАЎЉ
υ
Captured Value (K)
2021
ЎЉ͵Љ
Square Feet
$0
$8,625
Ώ
υ
Captured Value (K)
2020
Square Feet
$2,875$8,625
ЋͲБАЎ
υ
Captured Value (K)
2019
ЋЎ͵Љ
Square Feet
$0$5,750
Ώ
υ
Captured Value (K)
2018
Commercial Buildout Schedule (In Thousands)
LA PORTE TIRZ 1 ZONE ENLARGEMENT
Square Feet
$2,875$5,750
ЋͲБАЎ
υ
ВΉЊЌΉЋЉЊЌ
Captured Value (K)
2017
ЋЎ͵Љ
Square Feet
$2,875
$0
Ώ
υ
Captured Value (K)
2016
Square Feet
$2,875$2,875
ЋͲБАЎ
υ
Captured Value (K)
2015
ЋЎ͵Љ
Square Feet
$0$0
Captured Value (K)
2014
Њ͵ 9ƭƷźƒğƷĻķ ĭğƦƷǒƩĻķ ǝğƌǒĻ źƭ ƦƩĻƭĻƓƷĻķ źƓ ƷŷƚǒƭğƓķƭ ƚŅ ķƚƌƌğƩƭ͵
Square Feet
/ƚƒƒĻƩĭźğƌΉwĻƷğźƌ 5ĻǝĻƌƚƦƒĻƓƷ ΛźƓ ƭƨǒğƩĻ ŅĻĻƷΜ
Cumulative Captured Value
Commercial Project Values
Total Captured Value
II/Ͳ \[\[t
SCHEDULE B
bƚƷĻʹ
45,263115,375228,762343,237479,230616,344795,421977,1851,161,6741,348,9311,538,9971,731,9141,927,7252,126,4732,328,2022,532,957
Tax Revenue
Cumulative
$
-
Available
$
$ $
$ $ $ $ $
$ $ $ $ $ $ $ $
45,26370,113113,387114,475135,993137,114179,077181,763184,490187,257190,066192,917195,811198,748201,729204,755 2,532,957
Revenues
Available
Total
-
Tax
$ $
$ $ $ $ $ $ $ $ $ $ $ $ $ $
$
$
45,26370,113113,387114,475135,993137,114179,077181,763184,490187,257190,066192,917195,811198,748201,729204,755 2,532,957
100% of
Collection
City Tax
-
$ $
$ $ $ $ $ $ $ $ $ $ $ $ $ $
$
$
0.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.71000.7100
100% of
Tax Rate
City
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
20152016201720182019202020212022202320242025202620272028202920302031
Coll.
Year
SCHEDULE D
20142015201620172018201920202021202220232024202520262027202820292030
Year
Tax
1234567891011121314151617
9/13/2013
6,375,0009,875,00015,970,00016,123,30019,153,90019,311,83325,222,13525,600,46825,984,47526,374,24226,769,85527,171,40327,578,97427,992,65928,412,54928,838,737
-
$
Cumulative
Valuation
Total
$ $
$ $ $ $ $ $ $ $ $ $ $ $ $ $
2,875,0002,875,0005,750,0005,750,0008,625,0008,625,00014,375,00014,590,62514,809,48415,031,62715,257,10115,485,95815,718,24715,954,02116,193,33116,436,231
Commercial
-
$
CumulativeValuation
Reflects 1.5% annual appreciation once buildout is complete
$ $ $ $ $ $
$ $ $ $ $ $ $ $ $ $
Projected Assessed Valuations and Tax Increment
(875,000)(1,750,000)(2,555,000)(2,593,325)(2,632,225)(2,671,708)(2,711,784)(2,752,461)(2,793,748)(2,835,654)(2,878,189)(2,921,361)(2,965,182)(3,009,660)(3,054,804)(3,100,626)
Exemption (20%)
-$
Homestead
Residential
$
$ $ $ $ $ $ $ $ $ $ $ $ $
$ $
LA PORTE TIRZ 1 ZONE ENLARGEMENT
4,375,0008,750,00012,775,00012,966,62513,161,12413,358,54113,558,91913,762,30313,968,73814,178,26914,390,94314,606,80714,825,90915,048,29815,274,02215,503,132
-$
Residential
Cumulative
Valuation
$ $
$ $ $ $ $ $ $ $
$ $ $ $ $ $
HHC, LLP
SCHEDULE C
Note:
Roll
Jan 1
20142015201620172018
201920202021202220232024202520262027202820292030
Tax
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:February 10,2014Appropriation: N/A
Requested By: Tim Tietjens Source of Funds: N/A
Planning Account Number:N/A
Department:
____Resolution: ____Ordinance: _X___Amount Budgeted: N/A
Report:
Exhibits
: Amount Requested: N/A
Ordinance
P & Z Recommendation Letter Budgeted Item: N/A
Revised Future Land Use Plan
Existing Land Use Plan
_____________________________________________________________________________________________
SUMMARY & RECOMMENDATION
NOTE: This item was postponed at the October 28, 2013,Council meeting until December
9, 2013. This item was postponed at the December 9, 2013, Council meeting until January
27, 2014.The developer has requested a postponement until February 10, 2014.
During the last two meetings of the Planning & Zoning Commission, a revision to the Future
Land Use Plan and a rezoning request were reviewed and recommended for a17.37 acre tract
near the intersection of Sens Road and Spencer Highway.Currently, the zoning map shows this
tract as General Commercial (GC) while the requested changeor proposed useis for Low
Density Residential(R-1).A proposed subdivision with 73 homes starting at $175,000is
currently in the design stage.
Section 211.004of the Texas Local Government Code requires thatrezoning must occur in
conformance with the Future Land Use Plan.Therefore, the request to revise the Future Land
Use Plan element of the Comprehensive Plan is procedurally before City Council for review in
advance of the rezoning request.The Future Land Use Planmap serves as abasis for the City’s
overall future development plan.
The letter of recommendation from the Planning and Zoning Commission for changing the
Future Land Use Plan is attached for Council consideration.
_____________________________________________________________________________________________
Action Required by Council:
Consider approval or other action of an ordinance changingthe Future Land Use Plan component
of the City’s Comprehensive Plan for a 17.37 acre tract near the intersection of Sens Road and
Spencer Highway.
______________________________________________________________________________________
Approved for City Council Agenda
______________________________________________________
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested:February 10,2014Appropriation: N/A
Requested By: Tim Tietjens Source of Funds: N/A
Planning Account Number:N/A
Department:
____Resolution: ____Ordinance: _X___Amount Budgeted: N/A
Report:
Exhibits
: Amount Requested: N/A
Ordinance
P & Z Recommendation Letter Budgeted Item: N/A
Revised Future Land Use Plan
Existing Land Use Plan
_____________________________________________________________________________________________
SUMMARY & RECOMMENDATION
NOTE: This item was postponed at the October 28, 2013,Council meeting until December
9, 2013. This item was postponed at the December 9, 2013, Council meeting until January
27, 2014.The developer has requested a postponement until February 10, 2014.
During the last two meetings of the Planning & Zoning Commission, a revision to the Future
Land Use Plan and a rezoning request were reviewed and recommended for a17.37 acre tract
near the intersection of Sens Road and Spencer Highway.Currently, the zoning map shows this
tract as General Commercial (GC) while the requested changeor proposed useis for Low
Density Residential(R-1).A proposed subdivision with 73 homes starting at $175,000is
currently in the design stage.
Section 211.004of the Texas Local Government Code requires thatrezoning must occur in
conformance with the Future Land Use Plan.Therefore, the request to revise the Future Land
Use Plan element of the Comprehensive Plan is procedurally before City Council for review in
advance of the rezoning request.The Future Land Use Planmap serves as abasis for the City’s
overall future development plan.
The letter of recommendation from the Planning and Zoning Commission for changing the
Future Land Use Plan is attached for Council consideration.
_____________________________________________________________________________________________
Action Required by Council:
Consider approval or other action of an ordinance changingthe Future Land Use Plan component
of the City’s Comprehensive Plan for a 17.37 acre tract near the intersection of Sens Road and
Spencer Highway.
______________________________________________________________________________________
Approved for City Council Agenda
______________________________________________________
Corby D. Alexander, City Manager Date
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REQUEST FOR CITY COUNCIL AGENDA ITEM
: February 10,2014Appropriation:
Agenda Date Requested
:Tim Tietjens Source of Funds: N/A
Requested By
Department:Planning Account Number: N/A
Report: __ __Resolution: _____Ordinance: _X___Amount Budgeted: N/A
Exhibits: Amount Requested: N/A
Ordinance
N/A
P&Z RecommendationLetter Budgeted Item:
Area Map
Preliminary Site Plan
Mailout Response
_____________________________________________________________________________________
SUMMARY & RECOMMENDATION
NOTE: This item was postponed at the October 28, 2013,Council meeting until December
9, 2013. This item was postponed at the December 9, 2013 Council meeting until January
27, 2014.The developer has requested a postponement until February 10, 2014. This item
has been unchanged from the information that appeared in the previous agendas.
The Planning & Zoning Commission, during theirSeptember 19, 2013,meeting, held a public
hearing to receive citizen comments regarding Rezone Request #13-92000002.Ken Schick, on
behalf of Lawrence B. Chapman, Trustee,seeks to have the propertyrezoned from General
Commercial (GC) to LowDensity Residential (R-1). The 17.37 acre property is located
northwest of Sens Road and Spencer Highway.
The applicant is proposing a 73lot single-family residential subdivision to be built by Beazer
Homes.In addition, current parcel configuration and depth of the property do not support
retail/commercial activities. Therefore, lowdensity residential zoning is requested for the subject
tract.
The adjoining properties to the west and north are single-family residential. The proposed
subdivision will have access along Sens Road. Public utilities are available to the property.Staff
recommends on-site sub-regional detention for the proposeddevelopment of the entire 33 acres.
Spencer Landing Subdivision Homeowners’ Associationsupports this rezone requestat the
$175,000 and up value. In addition, written comments havebeen received from adjoining property
owners in favor of this request. A property posting sign notifying the public of a hearing on this
request was posted along with mailout to property owners within 200’ of the subject property,
which included 35 homeowners/residents of the Spencer Landing subdivision.
The subject tract would be better served by the proposed rezoning from General Commercial to
Low Density Residential.The proposed development would contribute considerably to the City’s
tax roll, and the remainder of theproperty at the intersection of Sens Road and Spencer Highway
will be conducive for future retail and commercial activities. After a public hearing, the Planning
and Zoning Commission, by unanimous vote, recommends City Council approval of Rezone
Request #13-92000002.
Action Required by Council:
1.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning
Commission to approve Rezone Request #13-92000002, rezoning the referenced
property fromGC to R-1.
Approved for City Council Agenda
__________________________________________________________
Corby D. Alexander, City Manager Date
REQUEST FOR CITY COUNCIL AGENDA ITEM
: February 10,2014Appropriation:
Agenda Date Requested
:Tim Tietjens Source of Funds: N/A
Requested By
Department:Planning Account Number: N/A
Report: __ __Resolution: _____Ordinance: _X___Amount Budgeted: N/A
Exhibits: Amount Requested: N/A
Ordinance
N/A
P&Z RecommendationLetter Budgeted Item:
Area Map
Preliminary Site Plan
Mailout Response
_____________________________________________________________________________________
SUMMARY & RECOMMENDATION
NOTE: This item was postponed at the October 28, 2013,Council meeting until December
9, 2013. This item was postponed at the December 9, 2013 Council meeting until January
27, 2014.The developer has requested a postponement until February 10, 2014. This item
has been unchanged from the information that appeared in the previous agendas.
The Planning & Zoning Commission, during theirSeptember 19, 2013,meeting, held a public
hearing to receive citizen comments regarding Rezone Request #13-92000002.Ken Schick, on
behalf of Lawrence B. Chapman, Trustee,seeks to have the propertyrezoned from General
Commercial (GC) to LowDensity Residential (R-1). The 17.37 acre property is located
northwest of Sens Road and Spencer Highway.
The applicant is proposing a 73lot single-family residential subdivision to be built by Beazer
Homes.In addition, current parcel configuration and depth of the property do not support
retail/commercial activities. Therefore, lowdensity residential zoning is requested for the subject
tract.
The adjoining properties to the west and north are single-family residential. The proposed
subdivision will have access along Sens Road. Public utilities are available to the property.Staff
recommends on-site sub-regional detention for the proposeddevelopment of the entire 33 acres.
Spencer Landing Subdivision Homeowners’ Associationsupports this rezone requestat the
$175,000 and up value. In addition, written comments havebeen received from adjoining property
owners in favor of this request. A property posting sign notifying the public of a hearing on this
request was posted along with mailout to property owners within 200’ of the subject property,
which included 35 homeowners/residents of the Spencer Landing subdivision.
The subject tract would be better served by the proposed rezoning from General Commercial to
Low Density Residential.The proposed development would contribute considerably to the City’s
tax roll, and the remainder of theproperty at the intersection of Sens Road and Spencer Highway
will be conducive for future retail and commercial activities. After a public hearing, the Planning
and Zoning Commission, by unanimous vote, recommends City Council approval of Rezone
Request #13-92000002.
Action Required by Council:
1.Conduct public hearing.
2.Consider approval or other action on a recommendation by the Planning and Zoning
Commission to approve Rezone Request #13-92000002, rezoning the referenced
property fromGC to R-1.
Approved for City Council Agenda
__________________________________________________________
Corby D. Alexander, City Manager Date
AREA MAP
(Rezone Request #13-92000002)
VALRY
CA
1 inch = 400 feet
R-1
BI
N D ST
N SPE
NCER LAN
DING
LLD
LOCATION OF PROPERTY
FOR PROPOSED REZONE
LI
FROM GC TO R-1
R-1
GC
S
SP
E
N
C
E
R
L
AN
D
I
NG
SPENCER HWY
PUD
PREPARED BY CLP GIS
Council Agenda Item
February10, 2014
10.
ADMINISTRATIVE REPORTS
(a)
Receive report from City Manager
La Porte Redevelopment Authority/La Porte Tax Reinvestment Zone Number
One Meeting, Wednesday, February 19, 2014
City Council Meeting, Monday, February 24, 2014
11. COUNCIL COMMENTS
regarding matters appearing on the agenda; recognition of
community members, city employees, and upcoming events; inquiry of staff regarding
specific factual information or existing policies– Councilmembers Mosteit, Clausen,
Martin, Moser, Kaminski, Zemanek, Leonard, Engelken and Mayor Rigby.
12.EXECUTIVE SESSION
:The City reserves the right to meet in closed session on any
agenda item should the need arise and if applicable pursuant to authorization by Title 5,
Chapter 551, of the Texas Government Code, including, but not limited to, the following:
Texas Government Code, Section 551.071(1)(A) –
Pending or Contemplated
Litigation: Meet with City Attorney to discuss Federal Highway Administration review of
American Trucking Association complaint against City of La Porte.
Texas Government Code, Section 551.072 –
Deliberation regarding purchase,
exchange, lease or value of real property:Discussion regarding former Texas Parks and
Wildlife building.
13.RECONVENE
into regular session and consider action, if any on item (s) discussed in
executive session.
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