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HomeMy WebLinkAbout13628 ORD - 02/23/1977ikh:2 -8 -77; 1st AN OR IT AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH PADRE ISLAND INVESTMENT CORPORATION CONSOLIDATING DEFERRED SUBDIVISION CONSTRUCTION OBLIGATIONS AND REVIS- ING CONSTRUCTION TIMETABLES, ALL AS MORE FULLY SET FORTH IN THE CONTRACT, A COPY OF WHICH, IN SUBSTANTIALLY THE SAME FORM, IS ATTACHED HERETO, MARKED EXHIBIT "A ", AND MADE A PART HEREOF, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, • TEXAS: SECTION 1. That the City Manager be and he is hereby authorized to execute a contract with Padre Island Investment Corporation consolidating deferred subdivision construction obligations and revising construction timetables, all as more fully set forth in the contract, a copy of which, in substantially the same form, is attached hereto, marked Exhibit "A ", and made a part hereof. 13628 • AGREEMENT WHEREAS, Padre Island Investment Corporation, a Texas corporation, here- inafter called "Padre ", has undertaken the development of approximately 3800 acres of land situated on Padre and Mustang Islands, Texas, which development is designated "Padre Island - Corpus Christi' and is hereinafter referred to as the "Project "; and WMREAS, in connection with the development of the Project, Padre has divided the Project into various portions or units and has planned and platted such portions or units of the Project over a period of time beginning on or about November 1, 1967; and k'HEREAS, in connection with the platting and development of the various portions or units of the Project, Padre has entered into various agreements (contracts) with the City of Corpus Christi, a municipal corporation, herein- after called "City ", pertaining to the construction, or delayed construction, of various subdivision improvements in connection with such sections or units of the Project, which contracts are listed below, to -wit: Specific Section or Unit of Date of Contract Padre Island- Corpus Christi Affected With City 1. Sections A and B February 2, 1968 2. Section C March 28, 1969 3. Section D July 2, 1969 A. Section E April 29, 1971 5,.- Section G April -29, 1971- 6. Sections 2 and 3 January 5, 1968 7. Section 4 November 1, 1967 8. Section 18 (Marina) none 9. Mariner's Cay Unit 1 none 10. Mariner's Cay Unit 2 April 29, 1971 11. Barataria Bay Units 1 and 2 September 3, 1968 12. Barataria Bay Unit 3 November 6, 1968 13. Barataria Bay Unit 4 October 31, 1968 14. Barataria Bay Unit 5 February 27, 1969 15. Sea Pines Unit 1 May 14, 1969 16. Point Tesoro Unit 1 May 14, 1969 17. Point Tesoro Unit 2 July 2, 1969 18. Point Tesoro Unit 3 July 2, 1969 19. Point Tesoro Unit 4 August 28, 1969 20. Point Tesoro Unit 5 April 29,. 1971 21. Cape Steer Unit 1 October 21, 1971 22. Cape Summer Unit 2 October 19, 1971 23. Coquina Bay April 29, 1971 24. Ports O'Call April 29, 1971 25. Island Fairway Estates April 29, 1971 26. Commodore's Cove Unit One April 29, 1971 27. Commodore's Cove Unit Two April 29, 1971; and WEIEREAS, such contracts between Padre and the City listed above contemplate the platting and development of the Project on a unit by unit basis upon a pre- scribed schedule as anticipated by Padre at the time each such unit was platted; and WHEREAS. the Project, as an entirety, has been substantially planned and platted and is now in the process of being developed as an overall unit or project; and WHEREAS, during the period from 1968 through 1976 Padre represents it has expended approximately $28,500,000 in the construction and development of improvements to the Project, of which sum, approximately $5,670,000, as, reported by Padre, was expended during the calendar year 1976, and, during such period of time subdivision improvements have been completed with respect to the following units of said Padre Island - Corpus Christi, to -wit: Section A, Section B, Section C, Section 2, Section 3, Section 4, Section 18, Mariner's Cay Unit 1, Mariner's Cay Unit 2, Ports O'Call and Commodore's Cove Unit One; and WHEREAS, it is the intent and desire of Padre and City to coordinate and consolidate the various contracts between Padre and City relating to the construction of the remaining subdivision improvements to be made to the Project in order to provide for the unified development of the Project as an entirety: -2- NOW, THEREFORE, for and in consideration of the premises, Padre and City hereby agree as follows: I. The contracts between Padre and City relating to Section A, Section B, Section C, Section 2, Section 3, Section 4, Section 18, Mariner's Cay Unit 1, Mariner's Cay Unit 2, Ports O'Call and Commodore's Cove Unit One, described in items 1, 2, 6, 7, 8; 9, 10, 24, and 26 above have been performed and such contracts are no longer of any force or effect and are hereby declared to be terminated. II. Subsequent to April 29, 1971, the State of Texas acquired title to a portion of the property platted as Padre Island - Corpus Christi, Section G; therefore, the plat thereof and the contract described in item 5 above are hereby declared to be null and void and of no further force or effect. III. The contracts between Padre and City relating to Barataria Bay Units 1, 2, 3, 4 and 5, described in items 11, 12, 13 and 14 above are hereby amended in their entirety to hereafter read as set forth in Exhibit A, attached hereto and made a part hereof. IV. The contracts between Padre and City dealing with Point Tesoro Units It 2, 3, 4, and 5, described in items 16, 17, 189 19 and 20, above are hereby amended in their entirety to hereafter read as set forth in Exhibit B, attached hereto and made a part hereof. V. The contract between Padre and City dealing with Section D, described In item 3 above, is hereby amended in its entirety to hereafter read as set forth in Exhibit C, attached hereto and made a part hereof. VI. The contract between Padre and City dealing with Sea Pines Unit 1, described in item 15 above, is hereby amended in its entirety to hereafter read as set forth in Exhibit D, attached hereto and made a part hereof. VII. The contracts between Padre and City relating to Section E, Cape Summer Unit 1, Cape Summer Unit 2, Coquina Bay, Island Fairway Estates, and Commodore's Cove Unit Two, described in items 4, 21, 22, 23, 25.and 27 above are hereby amended by deleting paragraph 6 of each of such contracts so that an escrow or trust account with respect to each individual subdivision unit will no longer be required. -3- • • VIII. In order to provide further assurance to the City that the con- struction of the subdivision improvements with respect to the Project in its entirety shall proceed in an orderly manner to timely completion, Padre agrees to establish an escrow or trust account (hereinafter called "Escrow Account ") to defray all or part of the estimated costs of the construction of such sub- division improvements.necessary to complete the Project upon the following terms and conditions: A. On or before December 31, 1977, Padre will deposit into such Escrow Account with the Corpus Christi National Hank (or such other institution acceptable to both City and Padre) the cash sum of $4,000,000 ( "escrow payment ") unless on or before such date: 1. Padre provides a statement of construction performed on the Project during such calendar year to meet the requirements of the City platting ordinance, satisfactory to the Director of Engineering and Physical Development (hereinafter called "the Director "), indicating construction expenditures on the Project for such purposes greater than the above described escrow payment required for such calendar year; and 2. Padre provides a statement of total accounts receivable having an outstanding principal balance of not less than the remaining con- struction obligations to meet the requirements of the City platting ordinance with respect to the construction of the subdivision improvements to complete items 4, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23,. 25, and 27. However, Padre shall be entitled to reduce such sum required to be deposited into the Escrow Account by the sum of money actually expended on construction of subdivision improvements to the Project during such calendar year (to the extent that same are.satisfactory to the Director, as provided in paragraph VIII A 1 above) and, subject to the limitations prescribed in paragraph VIII A 2 above. For example, if the Director determines that Padre has expended $3,000,000 during calendar year 1977 (and the requirements of paragraph VIII A 2 are met), then the cash sum required to be deposited into the Escrow Account by Padre shall be reduced by such amount and the required escrow payment for the calendar year 1977 shall be $1,000,000 ($4,000,000 minus $3,000,000). ME B. Such Escrow Account shall be invested so as to bear interest, and both principal and interest shall be for the account of Padre, subject to expenditure only for the purposes of this Agreement. C. In like manner, and subject to the other terms and provisions of this paragraph VIII, during the succeeding five years Padre shall deposit into such Escrow Account the following suns: Amount of Escrow Cumulative Total of Escrow Payments Calendar Year Payment Required and Approved Construction 1978 $4,000,000 $8,000,000 1979 4,400,000 12,400,000 1980 4,800,000 17,200,000 1981 6,800,000 24,000,000 1982 5,300,000 29,300,000 D. During calendar year 1978 and each year thereafter during the term of this Agreement, the sum required to.be deposited into the Escrow Account shall be reduced by the amount of construction performed during such calendar year satisfactory to the Director, together with the amount of such construction performed during the previous calendar year, or years, in excess of the requirements set forth above, subject to the limitations set forth in paragraph VIII A 2 above. For example, If. during calendar year 1977 Padre should expend $8,000,000 in con- structing such subdivision improvements an the Project, then Padre shall have satisfied its escrow requirements under this Agreement for both 1977 and 1978, and shall be credited accordingly. E. Any sum remaining in such Escrow Account after final payment of the construction cost of such subdivision improvements may be withdrawn by Padre. In addition, any such sum may be utilized in making the final payment on any construction contract which constitutes the last phase of construction required under the terms of this Agreement, subject to such reasonable assurances and safeguards as may be required by the City. -5- • I%. This Agreement shall be binding upon the parties hereto, their s_cc=_ssors and assigns, and may be specifically enforced by either party, its successors or assigns. D:12ED, 1977. CITY OF CORPUS CHRISTI, TEXAS PADRE ISLAND PiIVESMENT CORPORATION By By Marvin Townsend, City Manager President ATTEST: ATTEST:' Secretary Secretary APPROVED AS TO LEGAL FORM THIS _ day -of 1977. City Attorney -6- • 7 • .1GP.EE` E \T The City of Corpus Christi, leas, hereinafter called "City ", and adre island Investment Corporation, a Texas corporation, hereinafter called "Padre ", hereby aZree as follows: 1. Padre has subm-itted to the authorized representatives of City pia:s of Padre Island - Corpus Christi, Barataria Bay Units 1, 2, 3, 4 and 5, ( hereinafter called "additions ") together with plans and specifica- tions for the construction of subdivision improvements to such additions. 2. The City has approved the final plats of such additions and the plans and specifications for the subdivision improvements to be con- structed thereon, subject to the conditions set forth in this agreement. 3. The City agrees that Padre may delay the completion of con- struction of such subdivision improvements on such additions until December 31, 1977. If such improvements are not installed and constructed on or before December 31, 1977, the City shall have the right to cancel the approval of such final plans of such additions and the approval of the plans and specifications for the subdivision improvements to-be con- structed on said additions, by filing with the County Clerk of Rueces County, Texas, an affidavit of non- completion of improvements on or subsequent to January 1,`1978. 4. Padre agrees to construct- the subdivision improvements spec- ified in the plans and specifications on file in the office of the Director of Public Works, and approved in connection with the approval Of the plats of said additions.on or before December 31, 1977, and before any buildings or other improvements are constructed upon any lot or parcel out of said additions. It is understood that such plans and specifications may be amended at the time of construction if such amend- ments are agreeable to both Padre and City. 5. Padre agrees that each contract, contract for deed or deed evidencing a sale or conveyance out of Padre will prohibit the construc- tion of buildings or other improvements of any nature whatsoever upon such lot or parcel out of said additions, until such subdivision im- QNIB1T A prover_ents have been constructed as required in paragraph G above. A copy Of each 5"ch contract form proposed to ba used shall be on file .:ith tha City Secretary and such fora or forms shall continue to be used u::til such time as the subdivision improvements have been constructed and /or installed by Padre, in accordance with the terms of this agree- ment. 6. This agreement shall be binding upon the parties hereto, their successors and assigns, and may be specifically enforced by either party, its successors or assigns. DATED 1977. CITY OF CORPUS CHRISTI, TFXAS PADRE ISLAND IRVESTMENT CORPORATION By By Marvin Townsend, City Manager President ATTEST: ATTEST: Secretary Secretary APPROVED AS TO LEGAL FORtI THIS DAY OF 1977. City Attorney -2- • AGREEMENT The City of Corpus Christi, Texas, hereinafter called "City ", and Padre Island Investment Corporation, a Texas corporation, hereinafter called "Padre ". hereby agree as follows: 1. Padre has submitted to the authorized representatives of City plats of Padre Island- Corpus Christi, Point Tesoro Units 1, 2, 3, 4 and 5, (hereinafter called 'additions ") together with plans and specifi- cations for the construction of subdivision improvements to such addi- tions. 2. The City has approved the final plats of such additions and the plans and specifications for the subdivision improvements to be con- strutted thereon, subject to the conditions set forth in this agreement. 3. The City'agrees that Padre may delay the completion of con- struction of such subdivision improvements on such additions until December 31, 1978. If such improvements are not installed and.constructed on or before December 31, 1978, the City shall have the.right to cancel the approval of such final plans of such additions and the approval of the plans and specifications for the subdivision improvements to be con- structed on said additions, by' filing with the County Clerk of nieces County, Texas, an affidavit of nonccompletion of improvements on or subsequent to January .l, 1979. 4. Padre agrees to construct the subdivision improvements spec- ified in the plans and specifications on file in the office of the Director of Public Works, and approved in connection with the approval of the plats of said additions on or before December 31, 19 and before any buildings or other improvements are constructed upon any lot or parcel out of said additions. It is understood that such plans and specifications may be amended at the time of construction if such amend- ments are agreeable to both Padre and City. 5. Padre agrees that each contract, contract for deed or deed evidencing a sale or conveyance out of Padre will prohibit the construc- tion of buildings or other improvements of any nature whatsoever upon such lot or parcel out of said additions, until such subdivision im- provements have been constructed as required in paragraph 4 above. A i WHIT a i cops of each such contract fora oroposdd to be used shall be on file with. the Cit." Secretary and such form or forms shall continue to be used until such time as the subdivision improvements have been constructed and /or installed by Padre, in accordance with the terns of this agree- ment. 6. This agreement shall be binding upon the parties hereto, their successors and assigns, and may be specifically enforced by either party, its successors or assigns. DATED 1977. CITY OF CORPUS CHP.ISTI, TEXAS PADRE ISUM. INV£SiMENT CORPORATION By By Marvin Townsend, City Manager Presidett ATTEST: ATTEST: Secretary Secretary APPROVED AS TO LEGAL. FORM THIS DAY OF 1977. City Attorney 1WM • ACREEMEYT Tile City of Corpus Christi, Texas, hereinafter called "City ", and Padre Island = avetitment Corporation, a Texas corporation, hereinafter called "Padre ", hereby agree as follows: I. Pa-_'_e has submitted to the auteorixed representatives of City. PI-Its of Padre Island- Corpus Christi, Section D, (hereinafter called "addition ") together with plans and specifications for the construction of subdivision improvements to such addition. 2. The City has approved the final plat of such addition and the plans and specifications for the subdivision improvements to be con- structed thereon, subject to the conditions set forth in this agreement. 3. The City agrees that Padre may delay the completion of con- struction of such subdivision improvements on such addition until December 31, 1977. If such improvements are not installed and constructed on or before December 31, 1977, the City shall have the right to cancel the approval of such final plan of such addition and the approval of the plans and specifications for the subdivision improvements to be con- structed on said addition, by filing with the County Clerk of Nueces County, Texas, an affidavit of non - completion of improvements on or subsequent to January 1, 1978. 4. Padre agrees to construct the subdivision improvements spec- ified in the plans and specifications on file in the office of the Director of Public Works, and approved in connection with the approval of the plat of said addition on or before December 31, 1977, and before any buildings or other improvements are constructed upon any lot or parcel out of said addition. It is understood that such plans and, specifications may be amended at the time of construction if such amend- ments are agreeable to both Padre and City. 5. Padre agrees that each contract, contract for deed or deed evidencing a sale or conveyance out of Padre will prohibit the construc- tion of buildings or other improvements of any nature whatsoever upon such lot or parcel out of said addition, until such subdivision im- provements have been constructed as required in paragraph 4 above. A EXHIBIT C • copy of each such contract form proposed to be used shall be on file with the City Secretary and such farm or forrs shall continue to be used until such time as the subdivision improvements have been constructed and /or installad by Padre, in accordance with tha terms of this agree- ment. 6. This agreement shall be binding upon the parties hereto, their successors and assigns, and may be specifically enforced by either party, its successors or assigns. DATED , 1977. CITY OF CORPUS CE.RISTI, TEXAS PADRE ISIMT.D I,NWESTMENT CORPORATION Sy By Marvin Townsend, City Hanger President ATTEST: ATTEST: Secretary Secretary APPROVED AS TO LEGAL, FOR_14 THIS DAY OF , 1977. City Attorney -2- AGRi LE: IEti`f The City- of Corpus Christi, Texas, hereinafter called "City ", and Page Island Investment Corporation, a Testis corporation, hereinafter called "Padre ", hereby agree as follows: I. Padre has submitted to the authorized representatives of City plats of Padre Island - Corpus Christi, Sea Pines Unit 1, (hereinafter called "addition ") together with plans and specifications for the construction of subdivision improvements to such addition. 2. The City has approved the final plat of such addition and the plans and specifications for the subdivision improvements to be con- structed thereon, subject to the conditions set forth in this agreement. 3. The City agrees that Padre may delay the completion of con- struction of such subdivision improvements on such addition until Ilay 1, 1978. If such improvements are not installed and constructed on or before May 1, 1978, the City shall have the right to cancel the approval of such final plan of such addition and the approval of the plans and specifications for the subdivision improvements to be con- structed on said addition, by filing with the County Clerk of hueces County, Texas, an affidavit of non - completion of improvements on or subsequent to May 2, 1978. ' 4. Padre agrees to construct the subdivision improvements spec- ified in the plans and specifications on file in the office of the Director of Public Works, and approved in connection with the approval of the plat of said addition on or before May 1, 1978, and before any buildings or other improvements are constructed upon any lot or parcel out of said addition. It is understood that such plans and specifica- tions may be amended at the time of construction if 'such amendments are agreeable to both Padre and City. S. Padre agrees that each contract, contract for deed or deed evidencing a sale or conveyance out of Padre will prohibit the construe- tion of buildings or other improvements of any nature whatsoever upon such lot or parcel out of said addition, until such subdivision im- EXHIBIT G P rove,en is have been constructed as required in paragraph 4 above. A copy of each such contract fora proposed to be used shall be on file with the City Secretary and such fora or forms shall continue to be used until such time as the subdivision improvements have been constructed and /or installed by Padre, in accordance with the terms of this agree- ment. o. This agreement shall be binding upon the parties hereto, their successors and assigns, and may be specifically enforced by either party, its successors or assigns. DATED 1977. CITY OF CORPUS CHRISTI, TEXAS PADRE ISLAND IN'VESDIENT CORPORATION sy By Marvin Townsend, City Tlaaager President ATTEST: ATTEST: Secretary Secretary APPROIM AS TO LEGAL FORpi THIS DAY OF 1977. City Attorney -2- THAT THE FOREGOING ORDINANCEIE,, WAS READ F �j TIE FIRST TIME AND PASSED TO ITS SECOND READING ON THIS THE ,lJI�DAY OF� 19777 BY THE FOLLOWING VOTE: JASON LueY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THAT THE FOREGOING OROIp CA VAS READ F T t SECOND TIME AND PASSED TO ITS THIRD READING ON THIS THE_, OF , TIME BY THE FOLLOWING VOTE: JASON LUBY DR. BILL TIPTON EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE THAT THE FOREGO1 OROINAN W READ FOR THE THIRD TIME AND PASSED FINALLY ON THIS THE .3A DAY OF , 19Z7, BY THE FOLLOWING VOTE: JASON LUBY DR. BILL TIPTON AAO J EDUARDO DE ASES RUTH GILL BOB GULLEY GABE LOZANO, SR. EDWARD L. SAMPLE PASSED AND APPROVED ATTEST: CIT ECRETARY VED: DAY OF q4 19 , & 4 c.kg ----U MAYOR THE CITY OF CORPUS CHRISTI, 13628 19?%