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HomeMy WebLinkAboutAgenda Packet City Council - 05/30/2006 CITY COUNCIL AGENDA MAY 30, 2006 Corpus Christi - AlI-Ameriea CiIV 11.45 A..M. < Proclamation declaring June 3, 2006 as "Veterans Band of Corpus Christi Twentieth Anniversary Celebration" AGENDA CITY OF CORPUS CHRISTI, TEXAS REGULAR COUNCIL MEETING CITY HALL - COUNCIL CHAMBERS 1201 LEOPARD MAY 30, 2006 10:00 A.M. PUBUC NOTICE - THE USE OF CELLULAR PHONES AND SOUND ACTIVA TED PAGERS ARE PROHIBITED IN THE CITY COUNCIL CHAMBERS DURING MEETINGS OF THE CITY COUNCIL. Members of the audience will be provided an opporlunity to address the Council at approximately 12:00 p.m. or at the end of the Council Meeting, whichever is earlier. Please speak into the microphone located at the podium and state your name and address. Your presentation will be limited to three minutes. If you have a petition or other information perlaining to your subject, please present it to the City Secretary Si Usted desea dirigirse al Con cillo y cree que su ingles es limitado, habra un inter prete ingles-espanol en todas las juntas del Concilio para ayudarle Persons with disabilities who plan to attend this meeting and who may need auxiliary aids or services are requested to contact the City Secretary's office (at 361-826-3105) at least 48 hours in advance so that appropriate arrangements can be made. A. Mayor Henry Garrett to call the meeting to order. B. Invocation to be given by Pastor Jerry Ward, Lighthouse Tabernacle Pentecostal Church of God. C. Pledge of Allegiance to the Flag of the United States. D. City Secretary Armando Chapa to call the roll of the required Charter Officers. Mayor Henry Garrett Mayor Pro Tern John Marez Council Members: Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex Kinnison Jesse Noyola Mark Scott City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa E. MINUTES: 1 Approval of Regular Meeting of May 23, 2006. (Attachment # 1) Agenda Regular Council Meeting May 30, 2006 Page 2 F" BOARDS & COMMITTEE APPOINTMENTS: (Attachment # 2) 2 * Transportation Advisory Committee Water Shore Advisory Committee * G. EXPLANATION OF COUNCIL ACTION: For administrative convenience, certain of the agenda items are listed as motions, resolutions, or ordinances. If deemed appropriate, the City Council will use a different method of adoption from the one listed; may finally pass an ordinance by adopting it as an emergency measure rather than a two reading ordinance; or may modify the action specified. A motion to reconsider may be made at this meeting of a vote at the last regular, or a subsequent special meeting; such agendas are incorporated herein for reconsideration and action on any reconsidered item H. CONSENT AGENDA Notice to the Public The following items are of a routine or administrative nature. The Council has been furnished with background and support material on each item, and/or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately unless requested by a Council Member or a citizen, in which event the item or items will immediately be withdrawn for individual consideration in its normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote ~NT MOTIONS. RESOLUTIONS. ORDINANCES AND ORDINANCES EBQPjPREVIOUS MEETINGS: (At this point the Council will vote on all motions, resolutions and ordinances not removed for individual consideration) 3. Motion approving the purchase of six (6) pickup trucks, two (2) cargo vans and seven (7) sedans from the following companies for the following amounts in accordance with Bid Invitation No. BI- 0123-06, based on low bid and low bid meeting specifications for a total amount of $216,558. The vehicles are purchased for Maintenance Services and Police. All vehicles are replacement CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regutar Council Meeting May 30, 2006 Page 3 units, Funds are available In the Law Enforcement Trust Fund and the Operation Budget of the General Services Department. (Attachment # 3) Champion Ford Corpus Christi, TX Pickups and Vans $124,872 Access Ford Corpus Christi, TX Sedans $91,686 Grand Total: $216,558 4 Motion approving a supply agreement with National Meters, Inc., of Lancaster, Ohio, for approximately 8,000 gas service regulators in accordance with Bid Invitation No. BI-0124-06, based on low bid for an estimated annual expenditure of $103,600, of which $17,266.67 is budgeted in FY 2005-2006. The term of the agreement shall be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted in FY 2005-2006 and requested for FY 2006-2007. (Attachment # 4) 5, Motion authorizing the City Manager or his designee to execute an agreement with the CHRISTUS Spohn Health System for the provision of medical director services in the amount of $30,000, for the City's Emergency Medical Services and emergency medical educational services. (Attachment # 5) 6.a. Ordinance appropriating $1 ,000 from the Wal-Mart Foundation in the General Fund No. 1020-11700; amending the FY 2005-2006 Operating Budget, adopted by Ordinance No. 026385, by increasing the amount approved by $1,000. (Attachment # 6) 6.b.. Motion approving payment in the amount of $1 ,000 to the Police Explores Post #133 for purchase of equipment and training of the Police Explorers. (Attachment # 6) 7 Ordinance appropriating $14,505 from the sale of seized vehicles in the No. 1061-821005 fu nd for pu rchase of equ i pment and training of police officers. (Attachment # 7) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 4 8.a. Motion authorizing the City Manager or his designee to accept a renewal Weed & Seed grant in the amount of $225,000 in the No. 1067 Parks and Recreation Grants Fund for Site II West for the continued support of the Weed & Seed Program from the United States Department of Justice (DOJ). (Attachment # 8) 8.b. Ordinance appropriating a $225,000 grant from the United States Department of Justice for Site II West for the continued support of the Weed and Seed Program FY 2005-2006 in the No. 1067 Parks and Recreation Grants Fund. (Attachment # 8) 9. Resolution authorizing the City Manager or his designee to submit a grant application to serve as the Fiscal Agent for FY 2006-2007 Texas Department of Family and Protective Services (DFPS) 78415 Community Youth Development (CYD) Program, with $500,000 DFPS funding. (Attachment # 9) 10. Ordinance transferring $3,000 from the NO.1 020 General Fund Account No. 202965-1020 to Account No. 530000-1020-13700; and appropriating the $3,000 to pay expenses for the Bay Jammin' Concert series. (Attachment # 10) 11. Motion authorizing the City Manager or his designee to approve a Letter of Agreement between the City of Corpus Christi and the Beautify Corpus Christi Association (BCCA). (Attachment # 11) 12. Motion authorizing the City Manager or his designee to execute a contract with the Department of State Health Services for the administration of duties performed by the Vital Statistics Division of the Health Department and for the payment of record fees due to the State. (Attachment # 12) 13, Motion authorizing the City Manager or his designee to execute a professional services contract with GISPlanning, Inc., of San Francisco, California for an amount not to exceed $34,600 for a license to the City for the online use of GIS Planning's Zoom Prospector software as hosted by GISPlanning, Inc. for use as client's Economic Development Site-Selection Analysis GIS Web Site. (Attachment # 13) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 5 14 Motion authorizing the City Manager or his designee to execute Amendment No. 1 to the Engineering Services Contract with Freese and Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $74,500 for the Wholesale Raw Water SCADA Improvements - 2005 Project for the Replacement of Master Meter No. 1 at o. N. Stevens Water Treatment Plant. (Attachment # 14) 15 Ordinance authorizing the City Manager or his designee to execute a Use Privilege Agreement with Mako Communications, L.L.C. (Owner) for the right to construct, maintain, and replace two (2) awnings within the North Lower Broadway Street right-of- way and one (1) awning within the Peoples Street right-of-way, adjacent to the Mako Communications building, located at 518 Peoples Street; establishing a fee of $162. (Attachment # 15) 16 Second Reading Ordinance - Amending the Platting Ordinance by adding the authority to delegate duties under the Platting Ordinance and specifying authority for signing plats by a professional engineer employed by the City; providing a severability clause; providing a repealer clause; and providing for an effective date. (First Reading OS/23/06) (Attachment # 16) 17. Second Reading Ordinance - Amending the Code of Ordinances, City of Corpus Christi, Chapter 53, Traffic, revising Section 53- 251, Schedule II by adding the category "Other Through Streets"; by adding Parr Street, from Comanche Street to Ahern Street, Ahern Street, from Parr Street to Bluntzer Street, and Bluntzer Street, from Ahern Street to Agnes Street; providing for penalties. (First Reading OS/23/06) (Attachment # 17) I. PUBLIC HEARINGS: ZONING CASES: 18. Case No. 0406-06. G.P. McCreless. Juan Meiia and Encino- Cimarron G.P. c/o Tim Clower: A change of zoning from a "R- 1 B" One-family Dwelling District/"A-1" Apartment House District/"A-2" Apartment House District to a "B-1" Neighborhood Business District. The property being 39 acres out of Flour Bluff and Encinal Farm and Garden Tracts, Section 11, Lots 6.7,8, 9 CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) ~ Agenda Regular Council Meeting May 30, 2006 Page 6 and 10, located 375 feet southwest of the intersection of Saratoga Boulevard and Cimarron Boulevard. (Attachment # 18) Planning Commission and Staff's Recommendation: Approval of the "B-1" Neighborhood Business District. ORDINANCE Amending the ZOning Ordinance, upon application by G.P. McCreless, Juan Mejia and Encino-Cimarron G.P. c/o Tim Clower, by changing the zoning map in reference to 39 acres out of Lots 6, 7, 8, 9 and 10, Section 11, Flour Bluff and Encinal Farm and Garden Tracts, from "R-1 Bn One-family Dwelling District, "A- 1" Apartment House District and "A-2" Apartment House District to "B-1" Neighborhood Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty clause. 19. Case No. 0406-07. Alan Anderson: A change of zoning from an "1-2" Light Industrial District to an "1-3" Heavy Industrial District. The property being .0121 acres out of 4.85 acres out of Lot 8, Block B, Ocker Addition, located at 1111 Southern Minerals Road and approximately 450 feet north of Sedwick Road. (Attachment # 19) Planning Commission and Staff's Recommendation: Denial of the "1-3" Heavy Industrial District and in lieu thereof, approval of a Special Permit for the above-ground fuel tank per the metes and bounds description. ORDINANCE Amending the Zoning Ordinance, upon application by Alan Anderson, by changing the zoning map in reference to .0121 acres out of 4.85 acres out of Lot 8, Block B, Ocker Addition (currently zoned "1-2" Light Industrial District) by granting a Special Permit for an above ground fuel storage tank per the metes and bounds description; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 7 20. Case No. 0506-01. Arriba Development. LLC: A change of zoning from a "R-1 B One-family Dwelling District to a "B-4" General Business District. The property being 1.97 acres out of B. S. & F. Survey 419, Abstract 570, Nueces County, Texas, located at the northwest intersection of Interstate 37 frontage road and Sessions Road. (Attachment # 20) Planning Commission and Staffs Recommendation: Denial of the "B-4" General Business District and, in lieu thereof, approval of a "B-1/SP" Neighborhood Business District with a Special Permit for a one year period that allows for a hotel or motel development. ORDINANCE Amending the Zoning Ordinance, upon application by Arriba Development by changing the zoning map in reference to 1.97 acres out of B. S. & F. Survey 419, Abstract 570, Nueces County, from "R-1 B" One-family Dwelling District to "B-1" Neighborhood Business District with a Special Permit for a hotel/motel use; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty clause. 21 Case No. 0506-02. Nasser Farahnakian: A change of zoning from a "R-1 B" One-family Dwelling District to a "B-4" General Business District. The property being 5.739 acres out of 254.069 acres, Abstract 988, Nueces County, Texas, located along the southwest corner of Clarkwood Road and the newly constructed State Highway 44 Bypass. (Attachment # 21) Planning Commission and Staff's Recommendation: Approval of the "B-4" General Business District. ORDINANCE Amending the Zoning Ordinance, upon application by Nasser Farahnakian, by changing the zoning map in reference to being 5.739 acres out of 254.069 acres, Abstract 988, Nueces County, Texas, from "R-1 B" One-family Dwelling District to "B-4" General CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 8 Business District; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan; providing a repealer clause; providing a penalty clause. J. PRESENTATIONS: Public comment will not be solicited on Presentation items. 22 Coliseum Redevelopment Request for Qualifications/Request for Proposal Process (Attachment # 22) (RECESS REGULAR COUNCIL MEETING) K. CORPORATION MEETINGS: (APPROXIMATELY 1 :30 P.M.) 23. TAX INCREMENT REINVESTMENT ZONE NO.2: (Attachment # 23) AGENDA TAX INCREMENT REINVESTMENT ZONE NO.2 Date: Tuesday, May 30.2006 Time During the meeting of the City Council beginning at 10:00 a.m. Location: City Council Chambers City of Corpus Christi 1201 Leopard Street Corpus ChristL Texas 78401 A. Call meeting to order B. Roll Check Directors. Samuel L. Neal, Jr., President Terry Shamsie (Nueces) Vice-Pres. Brent Chesney Melody Cooper Jerry Garcia Henry Garrett John E. Marez Jesse Noyola Mark Scott Rex A. Kinnison John Longoria Cal Jennings (Hospital District) Officers: George K. Noe, General Manager Armando Chapa, Secretary Mary Juarez, Asst. Secretary Vacant, Treasurer Vacant, Asst. Treasurer CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regutar Council Meeting May 30, 2006 Page 9 John LaRue (Port of Corpus Christi Authority) Richard Pittman (Flour Bluff) Gabriel Rivas (Del Mar) C. Special Consideration Items: 1. Motion approving the minutes of February 25,2003 meeting. 2. Appointment of officers (President, Vice President, General Manager, Secretary, Assistant Secretary, Treasurer and Assistant Treasurer) D. Public Comment E. Adjournment 24. NORTH PADRE ISLAND DEVELOPMENT CORPORATION MEETING: (Attachment # 24) AGENDA NORTH PADRE ISLAND DEVELOPMENT CORPORATION DATE: Tuesday, May 30,2006 TIME During the meeting of the City Council beginning at 10:00 a.m. LOCATION: City Council Chambers City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 A. Call to order. B. Roll check Corporation Directors: Vacant, President Mark Scott, Vice-President Brent Chesney Melody Cooper Jerry Garcia Henry Garrett Officers: George K. Noe, Executive Director Armando Chapa, Secretary Cindy O'Brien, Treasurer CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 10 Rex A. Kinnison John Longoria John Marez Jesse Noyola C. Special Consideration items: 1. Approval of the minutes of the July 13, 2004 meeting. 2. Appointment of Officers (President, Vice President, Executive Director, Secretary, Treasurer) 3. Resolution authorizing the issuance of North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2006, in an aggregate principal amount not to exceed $2,900.000; approving a Bond Purchase Agreement and other contract documents relating to the Series 2006 Bonds; and containing other provisions related thereto. D. Public Comment E. Adjournment (RECONVENE REGULAR COUNCIL MEETING) L. REGULAR AGENDA CONSIDERATION OF MOTIONS. RESOLUTIONS. AND ORDINANCES: 25 Resolution approving the resolution by the North Padre Island Development Corporation authorizing the issuance of Series 2006 Bonds in an aggregate principal amount not to exceed $2.9 Million. (Attachment # 25) 26.a. Motion to amend prior to second reading ordinance authorizing the City Manager or his designee to execute a Lease Agreement with Peter Bryant (MMD Communications) for a term of 8 days in April, 2007, for the Texas I nternational Yacht and Jet Plane Show at the Peoples Street T -Head; providing for two 5 year renewals upon City Manager, or designee, finding show successful for City; CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 11 by amending Lease Section 6 to provide that City, in lieu of marina rental fees, shall received greater of: $25,000 or 10% of Net Profits, as defined in Exhibit F. (Attachment # 26) 26.b. Second Reading Ordinance -Authorizing the City Manager or his designee to execute a Lease Agreement with Peter Bryant (MMD Communications) for a term of 8 days in April, 2007, for the Texas International Yacht and Jet Plane Show at the Peoples Street T -Head; providing for two 5 year renewals upon City Manager, or designee, finding show successful for City. (First Reading 4/25/06) (Attachment # 26) 27 Resolution authorizing the City Manager or his designee to execute an I nterlocal Agreement with the Corpus Christi Independent School District to locate and jointly operate a branch library on district property next to the Kaffie Middle School. (Attachment # 27) 28.a. Motion authorizing the City Manager or his designee to execute a construction contract with H & G Contractors of Corpus Christi, Texas in the amount of $3,774,910, subject to certification of funds, for Cimarron Boulevard Street Improvement Project - Phase 2 - from Yorktown to Bison (Mireles). (BOND ISSUE 2004) (Attachment # 28) 28.b. Motion authorizing the City Manager or his designee to execute a Construction Materials Testing Contract with Rock Engineering & Testing Laboratory, Inc. in the amount of $32,639 for the Cimarron Boulevard Street Improvement Project Phase 2 - from Yorktown to Bison (Mireles). (BOND ISSUE 2004) (Attachment # 28) 29.a. Resolution authorizing the execution of an agreement with Ullah Investments, Inc. providing for temporary property tax abatement. (Attachment # 29) 29.b. Resolution authorizing the execution of an agreement with Shutters Management, Ltd. providing for temporary property tax abatement. (Attachment # 29) CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) ~ ~ r9 Agenda Regular Council Meeting May 30, 2006 Page 12 29.c. Resolution authorizing the execution of an agreement with Nueces Loft Apartments providing for temporary property tax abatement. (Attachment # 29) 30.a. First Reading Ordinance - Amending the Corpus Christi City Code of Ordinances, Chapter 12 - Boats, Bays and Waterways, Article III - Marina, Section 12-46 - Prohibition against living aboard water craft, by changing "Prohibition against" to "Policy regulating" and directing Marina Superintendent to adopt a live aboard policy and limiting the prohibition to "Except as authorized by the Policy"; providing for penalties under Section 1-6, City Code of Ordinances. (Attachment # 30) 30.b. Resolution authorizing new Parks and Recreation Slip Rental Fees for live aboards at the City Marina under revised Section 12- 46, Code of Ordinances; providing for effective date. (Attachment # 30) M. SPECIAL BUDGET PRESENTATION: 31 Overview of Proposed FY 2006-2007 Operating Budget (Attachment # 31 ) N. PUBLIC COMMENT FROM THE AUDIENCE ON MATTERS NOT SCHEDULED ON THE AGENDA WILL BE HEARD AT APPROXIMATELY 12:00 P.M. OR AT THE END OF THE COUNCIL MEETING. WHICHEVER IS EARLIER. PLEASE LIMIT PRESENTATIONS TO THREE MINUTES. IF YOU PLAN TO ADDRESS THE COUNCIL DURING THIS TIME PERIOD, PLEASE SIGN THE FORM A T THE REAR OF THE COUNCIL CHAMBER, GIVING YOUR NAME, ADDRESS AND TOPIC. (A recording is made of the meeting; therefore, please speak into the microphone located at the podium and state your name and address. If you have a petition or other information pertaining to your subject, please present it to the City Secretary.) Si usted se dirige a la junta y cree que su mgles es Iimitado, habra un inter prete ingles-espanal en la reuni6n de la junta para ayudarJe. PER CITY COUNCIL POLICY, NO COUNCIL MEMBER, STAFF PERSON, OR MEMBERS OF THE AUDIENCE SHALL SERA TE, EMBARRASS, ACCUSE, OR SHOW ANY PERSONAL DISRESPECT FOR ANY MEMBER OF THE CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) ~ Agenda Regular Council Meeting May 30, 2006 Page 13 STAFF, COUNCIL MEMBERS, OR THE PUBLIC A T ANY COUNCIL MEETING. THIS POLICY IS NOT MEANT TO RESTRAIN A CITIZEN'S FIRST AMENDMENT RIGHTS. O. EXECUTIVE SESSION: PUBLIC NO TICE is given that the City Council may elect to go into executive session at any time during the meeting in order to discuss any matters listed on the agenda, when authorized by the provisions of the Open Meeting Act, Chapter 551 of the Texas Government Code, and that the City Council specifically expects to go into executive session on the following matters. In the event the Council elects to go into executive session regarding an agenda item, the section or sections of the Open Meetings Act authorizing the executive session will be publicly announced by the presiding office. 32. Executive session under Texas Government Code Section 551.072, deliberations about real property and Section 551.087, deliberations regarding economic development negotiations, as it relates to Coliseum Redevelopment, with possible discussion and action in open session. 33. Executive session under Texas Government Code Section 551.071 for private consultation with its attorney regarding potential claims related to the construction of the American Bank Center Arena. with possible discussion and action in open session. P. REPORTS: The following reports include questions by Council to Staff regarding City policies or activities; request by Council for information or reports from Staff; reports of activities of individual Council members and Staff; constituent concerns; current topics raised by media; follow-up on Staff assignments; scheduling of future Council meetings and activities; and other brief discussions regarding city-related matters. 34. CITY MANAGER'S REPORT * Upcoming Items 35 MA YOR'S UPDATE CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) Agenda Regular Council Meeting May 30, 2006 Page 14 36 COUNCIL AND OTHER REPORTS Q. ADJOURNMENT: POSTING STATEMENT: This agenda was posted on the City's official bulletin board at the front entrance to City Hall. 1201 Leopard Street, at. 2:30 p.m., May 26,2006. ~ Armando Chapa City Secretary NOTE: The City Council Agenda can be found on the City's Home Page at www.cctexas.com after 7:00 p.m. on the Friday before regularly scheduled council meetings. If technical problems occur, the agenda will be uploaded on the Internet by Monday morning. Symbols used to highlight action item that implement council priority issues. CITY COUNCIL PRIORITY ISSUES (Refer to legend at the end of the agenda summary) 1 MINUTES CITY OF CORPUS CHRISTI, TEXAS Regular Council Meeting May 23, 2006 - 10:00 a,m PRESENT Mayor Henry Garrett Mayor Pro Tem John Marez Council Members: Brent Chesney Jerry Garcia Bill Kelly Rex Kinnison Jesse Noyola Mark Scott City Staff: City Manager George K. Noe City Attorney Mary Kay Fischer City Secretary Armando Chapa ABSENT Melody Cooper Mayor Garrett called the meeting to order in the Council Chambers of City Hall. The invocation was delivered by Dr. Sam Gutierrez of Cornerstone Church and the Pledge of Allegiance to the United States flag was led by Council Member Chesney. Mayor Garrett called for approval of the minutes of the regular Council meeting of May 16, 2006 and the special Council meeting of May 18, 2006 A motion was made and passed to approve the minutes as presented, ~ ~ * * * * * * * * * * Mayor Garrett called for consideration of the consent agenda (Items 2 - 12). Mr. Johnny French, 4417 Carlton, requested that Item 5 be pulled for individual consideration. Council members requested that Items 8, 9, and 11 be pulled for individual consideration. A motion was made and passed to approve Items 2 through 12, constituting the consent agenda, except for Items 5. 8, 9, and 11 which were pulled for individual consideration. City Secretary Chapa polled the Council for their votes as follows 2 MOTION NO. 2006-148 Motion approving a service agreement with OneSource Facility Services, Inc., Corpus Christi, Texas for custodial service for the main police building in accordance with Bid Invitation No 81-0068-06 based on best value for an estimated annual expenditure of $78,516 of which $13,086 is budgeted in FY05-06. The term of the contract will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee. Funds have been budgeted by the Police Department in FY2005-2006 and requested for FY2006-2007. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. Minutes - Regular Council Meeting May 23, 2006 - Page 2 3 MOTION NO, 2006-149 Motion approving a supply agreement with Secor, Houston, Texas for approximately 143,000 feet of polyethylene pipe in accordance with Bid Invitation No. BI-0122-06 based on only bid for an estimated annual expenditure of $149,610 of which $37,402.50 is budgeted for FY2005-2006. The term of the contract will be for twelve months with an option to extend for up to two additional twelve-month periods subject to the approval of the supplier and the City Manager or his designee, The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 4 MOTION NO, 2006-150 Motion approving the lease of a motor grader with Waukesha-Pearce Industries, Inc., Corpus Christi, Texas for the total amount of $141,600, of which $11,800 is budgeted in FY2005-2006, The award is in accordance with Bid Invitation No. BI-0135-06 and is based on best value The term of the lease is for twenty-four months with an option to extend the lease for up to twelve additional months subject to the approval of the City Manager or his designee. The motor grader will be used by the Park and Recreation Department. Funds have been budgeted by Parks and Recreation in FY2005-2006 and requested for FY2006- 2007 The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 6 MOTION NO. 2006~151 Motion authorizing the City Manager or his designee to execute a Testing Agreement with Kleinfelder, of Corpus Christi. Texas, in the amount of $59,700 for geotechnical investigation for the Southside Water Transmission Main Phase 6 Project. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia. Kelly, Kinnison, Marez, Noyola. and Scott, voting "Aye"; Cooper was absent. 7 a. ORDINANCE NO. 026785 Ordinance appropriating $43,500 from the unappropriated fund balance of the Maintenance Services Fund No. 5110 for the Police Department Chilled Water Plant Upgrade - 2006; amending the FY2005-2006 Annual Operating Budget adopted by Ordinance No. 026385 by increasing appropriations by $43,500, An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye": Cooper was absent Minutes - Regular Council Meeting May 23,2006 - Page 3 7.b. MOTION NO. 2006-152 Motion authorizing the City Manager or his designee to execute an engineering services contract with Stridde Callins & Associates, of Corpus Christi, Texas in the amount of $43,500 for the Police Department Chilled Water Plant Upgrade - 2006. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 10 ORDINANCE NO. 026789 Ordinance authorizmg the City Manager or his designee to execute a Participation Agreement for the street improvements to Elvis Drive with ONAC Developers, Inc., Developer of Graceland subdivision, located south of Slough Road and east of Rodd Field Road, of which the City's share of cost shall not exceed $54,039. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent 12. ORDINANCE NO. 026790 Granting to the CC Digital Community Development Corporation a non-exclusive franchise to operate. maintain. construct, extend, and upgrade facilities of the City of Corpus Christi Citywide Integrated Wi-Fi Network in the Public Rights-of-Way. (First Reading - 4/25/06) The foregoing ordinance was passed and approved on its second reading with the following vote Garrett. Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett opened discussion on Item 5 regarding the beach festival permit for the "C Sculptures" event Mr Johnny French. 4417 Carlton, spoke regarding his concerns that the cumulative effects of the C-Sculptures event, Spring Break, and planned beach maintenance would endanger the Piping Plover habitat north of Zahn Road. He asked the Council to reconsider their decision to close the beach south of Packery Channel so special events could be held on that portion of the beach instead City Secretary Chapa polled the Council for their votes as follows: 5 ORDINANCE NO. 026784 Ordinance authorizing the execution of a beach festival permit and contract with Clear Channel Broadcasting, Inc. for "e Sculptures, " on the Gulf Beach at Newport Pass County Park An emergency was declared and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye": Cooper was absent Mayor Garrett opened discussion on Item 8 regarding emergency repairs to the Development Services Center's chiller. Mr Garcia asked if the air conditioning unit was part of the initial system put in when the center was renovated. Assistant Director of Engineering Services Kevin Stowers replied that new chillers were installed when the city originally occupied the building three years ago. Mr. Garcia asked if the city still had a maintenance agreement with the contractor for the system Mr Stowers replied negatively saying that the one-year warranty had already Minutes - Regular Council Meeting May 23, 2006 - Page 4 expired. City Secretary Chapa polled the Council for their votes as follows: 8 ORDINANCE NO. 026786 Ordinance appropriating $36,400 from the unappropriated fund balance of the Maintenance Services Fund No. 5110 for the Development Services Emergency Chiller Repairs - 2006; amending the FY2005-2006 Annual Operating Budget adopted by Ordinance No. 026385 by increasing appropriations by $36.400. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye": Cooper was absent Mayor Garrett opened discussion on Item 9.a. regarding a Sanitary Sewer Trunk Force Main and Lift Station Construction and Reimbursement Agreement for a Master Plan Lift Station. Mr. Garcia asked if the city was planning to reimburse the developers along South Fork or Greenfields by the Bay. Assistant Director of Development Services Mary Frances Teniente replied affirmatively. She said the current issue addressed problems with a previous agreement with the developer for South Fork Unit 5, which was executed and approved on May 24,2005. She said that particular developer did not adhere to the terms of the agreement. Subsequently, she said the city had to discuss the agreement with the South Fork Unit 4 developer whose development was also impacted by the lift station. She said the new developer agreed with the terms, and the previous developer had signed a release from the terms of the agreement. In response to Mr. Garcia's question on Item 9.b., Ms. Teniente stated that the lift station's affected area included both platted lots and undeveloped area, so the area had not reached its ultimate development at this point. She said a number of new developments would benefit from the lift station. Mr. Garcia asked if she thought that approximately 200 to 300 lots were coming on line In this area Ms. Teniente replied affirmatively. City Secretary Chapa announced that the ordinance in Item 9.a. needed to be amended to change the words "and reappropriating" to "which appropriated". Mr. Scott made a motion to amend the ordinance as stated by Mr. Chapa, seconded by Mr. Kinnison, and passed. City Secretary Chapa polled the Council for their votes on the ordinance as amended as follows: 9a. ORDINANCE NO. 026787 Ordinance repealing Ordinance 026277; adopted on May 24, 2005, ::md re3ppropri3ting which appropriated $975,210.63 to the Sanitary Sewer Trunk System Trust Fund No. 250410-4220 for the reconstruction of the existing Master Plan Lift Station No. 1047 (Greenfields by the Bay), located east of Rodd Field Road and south of Wooldridge Road, with 12-foot diameter wet well and 3,850- linear feet of 12-inch Force Main, easement acquisition and related appurtenances for the Greenfields by the Bay Service Area. An emergency was declared, and the foregoing ordinance was passed and approved as amended with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott. voting "Aye"; Cooper was absent. Minutes - Regular Council Meeting May 23,2006 - Page 5 9b. MOTION NO. 2006-153 Motion approving the Sanitary Sewer Trunk Force Main and Lift Station Construction and Reimbursement Agreement submitted by AI Development, Inc., owner and developer of South Fork Unit 4 Subdivision for the reconstruction of the existing Master Plan Lift Station No 1047 (Greenfields by the Bay), located east of Rodd Field Road and south of Wooldridge Road, with 12-foot diameter wet well and 3,500-linear feet of 12-inch Force Main, easement acquisition and related appurtenances. The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. 9 c. ORDINANCE NO. 026788 Ordinance appropriating $975,210.63 from the Sanitary Sewer Trunk System Trust Fund No. 250410-4220 to pay AI Development, Inc. for the reconstruction of Master Plan Lift Station No. 1047 (Greenfields by the Bay) with 12-foot diameter wet well and 3,500-linear feet of 12- inch Force Main, easement acquisition and related appurtenances for the Greenfields by the Bay Service Area, located east of Rodd Field Road and south of Wooldridge Road. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett opened discussion on Item 11 regarding a lease agreement for the Texas International Yacht & Jet Plane Show Mr. Kinnison expressed concern about a provision in Section 6 of the contract, which would allow the lessee to pay 10 percent of profits in lieu of Marina rental fees. He said the lease agreement did not define a "net profit", and in addition, he thought it would be easier to base the amount off of gross profits as opposed to net profits. He asked staff to consider reworking the agreement City Manager Noe stated staff could withdraw the item and resubmit it for Council consideration next week. The Council concurred with City Manager Noe's suggestion to withdraw the 'tem 11 WITHDRAWN Second Re:Jding Ordin::mce Authorizing the City M::mager or his dosignee to execute ::l Le::lse I',greement 'Nith Peter Bry::lnt (MMD Communications) for ::l term of 8 days in April, 2007, for the Texas Intern:Jtion:J1 Y3cht ::lnd Jet Pl3ne Sho..... ::It the Peoples Street T He3d; providing for tv.-a 5 year renew31s upon City M:Jn3ger, or designee, finding show successful for City. (First Reading -1/25/06) Mayor Garrett noted that the boat show planned to have a gated entrance at the T-Head where they would charge admission He asked City Attorney Fischer check into the legality of this plan. -~.. ~******-*,** Mayor Garrett referred to Item 13a , and a motion was made, seconded and passed to open the public hearing on the following issue Minutes - Regular Council Meeting May 23, 2006 - Page 6 13.a. Public hearing to consider amending the City's Comprehensive Plan by amending the Master Sanitary Sewer Plan (Master Sanitary Sewer Plan for the Southem Portion of Corpus Christi) and rescinding the SPA 30 Sub Basin Sanitary Sewer Master Plan, by approving and adopting the Wastewater Collection System Master Plan, Oso W.R.P. Service Area, Sub Basin SPA 30 City Secretary Chapa noted that the ordinance was listed on the agenda as a first reading ordinance. He said staff was recommending, however, that the ordinance be passed on an emergency basis City Engineer Angel Escobar reported that this was the first of 12 sub-areas staff recommended amending in the Wastewater Collection System Master Plan. The area was in the southeastern portion of the city, bounded by Saratoga Boulevard, Oso Creek, Cayo del Oso, and AirlinelRodd FieldlYorktown area. He noted that the SPA 30 trunk main was currently under construction. He said this master plan amendment was needed in response to subdivision development occurring in the southern area of the City. He introduced Mr. Dan Leyendecker with LNV Engineering who would be making a detailed presentation. Mr. Leyendecker displayed a slide with maps outlining the existing master Plan, adopted in 1983, and the proposed master plan. He said the proposed master plan allowed for a net increase of 330 acres. The proposed plan incorporated aspects of numerous adopted plans, including the Southside Area Development Plan and the adopted Future Land Use Map. In addition, he said staff Incorporated comments obtained through interviews with Development Services staff and requests from the local engineering community. Finally, he said the team used aerials to validate the rooftop counts and land use densities in the area Mr. Leyendecker discussed the differences between the existing master plan and the proposed master plan First, he said the service area boundaries in the proposed master plan were more clearly defined for each lift station. Second, he said the proposed master plan included four lift stations as opposed to three in the 1983 Master Plan. Third, he said the city's Adopted Future Land Use plan (2005) was Incorporated into the proposed master plan. Fourth, he said the city's 2003 L1DAR elevation data was incorporated into the proposed master plan to more correctly represent the sub-basin's topography. He also pointed that a southern portion of the existing master plan was originally intended for a southside wastewater plant He said the proposed master plan considered this area as low density reSidential Mr. Leyendecker stated that he tried to make the master plan fairly flexible, so it could meet the city's requirements and the developer's needs. He said the lift station phasing, for example, was based on platted land area, not population Mr. Leyendecker then showed a chart depicting the lift station phasing for Lift Station #14 and Lift Station #13 in more detail. In conclUSion, Mr Leyendecker stated that the SPA 30 Master Plan was based on and was consistent with the City of Corpus Christi's adopted plans. He said the proposed plan was flexible enough to accommodate the pace of the development community while meeting the city's requirements. Mr. Scott asked who would pay for the construction of Lift Station #14. Assistant Director of Development Services Mary Frances Teniente stated that the developer would pay for the infrastructure up front, and then the city would reimburse the developer. Mr. Scott stated that he felt It would have been inappropriate to ask the developer to pay for the lift station. Mr. Scott asked staff to explain their rationale for reworking this master plan. Mr. Leyendecker stated that the last update to the master plan in 1983 only changed the boundaries. Minutes - Regular Council Meeting May 23, 2006 - Page 7 Before then, the last plan that used land densities was in 1973. At that time, he said the entire area was coded as low density residential, and used five people per acre as the average standard. The proposed master plan updated the plan to better reflect the current density of the southside, an average of three persons per dwelling unit. City Manager Noe added that the city was recommending the master plan amendments to this and the other 12 areas because of the level of development pressure in those areas. As such, he said staff wanted to ensure that the master plans were up-to-date and usable for the development community. In response to Mr. Scott's question, Mr. Escobar replied that the additional lift station being proposed was Lift Station #13 at the end of Slough Road. Mr. Scott asked if Lift Station #13 was eligible for 100 percent reimbursement out of the trust fund. Mr. Escobar answered affirmatively. Mr. Scott asked if there were sufficient funds in the trust fund. Ms. Teniente replied that the funds were in the trust fund, but noted that on April 2005, the Council passed a resolution to suspend appfications to the trust fund until a new program was approved and reviewed. Mr. Scott remarked that it was contradictory if the city saying the lift station expenses were 100 percent reimbursable when the developers were not allowed to apply for the funds. City Manager Nee acknowledged that the city recognized the need to refund the reimbursement system and was working on a plan. Mr. Scott stated that the talk among the developers south of Saratoga was that they had purchased land in that area based on a certain set of plans. The developers made substantial progress on their projects, only to have the city change the plan in the middle of the game with a dramatic price increase. Mr. Leyendecker stated that he did not see how the developers' costs were going to Increase dramatically. Ms. Teniente added that the River Bend Lift Station had $1.8 million reserved in the trust fund for that developer's costs, and the developer applied for the funds before the suspension of applications went into effect. Although the project was still in the design phase, she said if there was a substantial increase over this cost, the city could look at the phasing of the pump to address it Mr. Scott stated that he did not want to vote on anything until these issues were resolved because he said there were too many uncertainties. Mr. Noe replied that staff could not Implement or discuss a plan with developers unless the Council adopted it. Mr. Scott asked for the construction cost of the existing lift station compared with the proposed lift station. Ms Teniente replied that the current application submitted was for a total of $1.6 million. and the city had reserved $1 8 million for expenses. Mr Leyendecker stated that while he had not performed a cost analYSIS. he said the only changes proposed for the new lift station were the larger size of the pumps and the Increased depth (18 inches) of the lift station. Mr. Scott noted that the city had allocated an additional $200,000 for the new lift station, and he asked if this would cover the expense Mr. Leyendecker replied that he thought $200,000 would cover the costs. Mr. Garcia stated that while he thought the Mr. Leyendecker's plan was technically sound, he wanted to know how the city could ensure that the contractors adhered to the plan specifications without a breakdown of the system He thought the city was having inherent problems with going to the developers. and this problem had manifested itself in the system breakdown between Yorktown Boulevard and Slough Road. City Engineer Escobar replied that this master plan would provide the guidelines and the capacity that Development Services needed to approve the subdivisions being platted in this area. He said that as the construction for the SPA 30 gravity sewer line progressed, the contractor was responsible to meet the specifications for grade, slope, and condition of backfill. He said Development Services would approve the plans being submitted for a subdiVision or a trunk trust main reimbursement, which would then be approved and brought to Council so the plans could be bid and constructed. He said the city relied on the bonding, Inspections and consultants to ensure that the contractors would fulfill their obligations according to the plans Mr Garcta stated that the city had to address the Inadequate funding for the city's trust fund. Minutes - Regular Council Meeting May 23,2006 - Page 8 He said he and other Council members knew experts who would be willing to assist the city in developing a new funding plan. He said that the city was being unfair to the developers by not having a good funding plan in place. Mr. Noe replied that the city needed to address the process as well as the funding issue. He said this was the first time the city had developers constructing mfrastructure that multiple developers relied on, creating an unusual set of circumstances. He said the city needed to step back and learn the lessons because it was not a positive experience for the city or the developer. Acting Director of Development Services Michael Gunning added staff needed to better monitor the new developments going in to ensure that they were consistent with the Infrastructure the city was planning. Mr. Kelly stated that he understood that the trust fund worked by reimbursing developers only for the excess capacity the city was demanding to comply with our land use plans. If the developer was responsible for paying for the infrastructure needed for his development, then he asked why the city was reimbursing the lift station projects at 100 percent. Mr. Gunning replied that this was normally how the system worked, but Ms. Teniente added that the Council approved an ordinance In 2003 that allowed for 100 percent reimbursements for lift stations, trunk mains, and force mains. Mr. Kelly asked how staff determined which projects were funded at 100 percent. City Manager Noe replied there was a system of reimbursement based on the type of facility, whether it was oversize or overdepth, and for critical infrastructure items such as force mains and lift stations. Mr. Kelly stated that he understood there was tremendous pressure to develop this area because of the growing population, and he understood why it was a high priority. He said, however, that he would like to see the 100 percent reimbursement for developments in Flour Bluff and the Northwest area as well He noted that the city had exhausted its trust fund to pay for these development. City Manager Noe replied that staff had identified 12 areas that required updates to the master plans to provide for future use, including areas in Flour Bluff and the Northwest. He noted that the Northwest wastewater master plan had been completed within the last two year, so It was relatively up to date. Mr. Leyendecker stated that the proposed updates to the Flour Bluff area plan would be brought to the Council before December 2006. Mr. Scott asked for a timeline on the trust fund financing issue. City Manager Noe replied that staff was working on a number of funding options, and had talked with several individuals about serving on an advisory group. He said staff should have a proposed plan ready within the next three or four months There were no comments from the public. Mr. Garcia made a motion to close the public hearing, seconded by Mr. Scott. City Secretary Chapa announced that staff had requested that the ordinance be considered on an emergency basis rather than on two readings. City Secretary Chapa polled the Council for their votes as follows Minutes - Regular Council Meeting May 23, 2006 - Page 9 13 ORDINANCE NO. 026791 First Roading Ordinance -A- amending the City's Comprehensive Plan by amending the Master Sanitary Sewer Plan (Master Sanitary Sewer Plan for the Southern Portion of Corpus Christi) and rescinding the SPA 30 Sub Basin Sanitary Sewer Master Plan, by approving and adopting the Wastewater Collection System Master Plan, Oso W.R.P. Service Area, Sub Basin SPA 30. and providing for an effective date. An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett referred to Item 14.a, and a motion was made, seconded, and passed to open the public hearing on the following issue: 14.a. Public hearing to consider amending the Platting Ordinance of the City of Corpus Christi by adding the authority to delegate duties under the Platting Ordinance and specifying authority for signing plats by a professional engineer employed by the City. City Manager Noe explained that the proposed amendment would improve the efficiency of the platting process by delegating certain plat authority to the Development Services Engineer with respect to approval and recordation of plats. Acting Director of Development Services Michael Gunning added that the proposed amendment would transfer the authority from the Director of Engineering Services (Angel Escobar) to the Development Services Engineer (Mary Frances T eniente l Mr. Garcia stated that while he was in favor of expediting the platting process, he wanted to ensure that platting process would be contained within the Development Services department. He also wanted the ordinance to clearly state who had the final authority on the platting process. Mr. Escobar pointed out that Section III H 1. k) (1) of the ordinance identified the Development Services Engineer by title Mr. Gunning assured Mr. Garcia that the Development Services Engineer had an office in the Development Services Center. In response to Mr. Chesney s question, City Manager Noe replied that the Development Services Engineer had final approval authority. Mr. Chesney said if the intent of the ordinance was to give the Development Services Engineer the final authority on plats, then he was in favor of the change. He thanked staff for the proposed change because it addressed one of his concerns about the Development Services department There were no comments from the audience Mr. Garcia made a motion to close the public hearing, seconded by Mr Chesney, and passed. City Secretary Chapa polled the Council for their votes as follows: Minutes - Regular Council Meeting May 23, 2006 - Page 10 14.b. FIRST READING ORDINANCE Amending the Platting Ordinance by adding the authority to delegate duties under the Platting Ordinance and specifying authority for signing plats by a professional engineer employed by the City; providing a severability clause; providing a repealer clause; and providing for an effective date. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia, Kelly, Marez, Noyola, and Scott, voting "Aye"; Cooper and Kinnison were absent. Mayor Garrett referred to Item 15, and a motion was made, seconded, and passed to open the public hearing on the following zoning case: Case No. 0406-09, Christus Spohn Health Systems: A change of zoning from an "AB" Professional Office District and "A-1" Apartment House District to a "B-1" Neighborhood Business District. The property being Bayfront Terrace, Block 4, Lots 10-13, located along Second Street and approximately 85 feet east of Ayers Street. City Secretary Chapa said the Planning Commission and staff recommended the denial of the "B-1" Neighborhood Business District on Lots 10,11,12 and 13 and in lieu thereof, approval of a Special Permit for the parking lot on Lots 10, 11, 12 and 13, and subject to a site plan and six (6) conditions. Acting Director of Development Services Michael Gunning reported that the applicant was requesting the zoning change to allow for completion of a partially constructed parking lot for the hospital's use. He stated that the subject property was located along Second Street and south of Ayers Street. He said the applicant initiated the parking lot construction based on a permit issued by Development Services, which assumed that the lot was an extension of parking areas for the Kieschnick House, an apartment development. In fact, he said the parking lot was to be a stand alone lot for use by Spohn Hospital employees. Once the inconsistency was discovered, he said the city asked them to stop work on the project, and Spohn complied and applied for a zoning change. Mr. Gunning stated that the Planning Commission and staff recommended denial of the "B- 1" Neighborhood Business District and in lieu thereof approval of a Special Permit subject to six conditions. He said Christus Spohn planned to use the parking lot to provide parking for employees who were housed in the "round building" that had been demolished. He said the "B-1" district allowed for a stand-alone parking lot and staff recommended that the Special Permit subject to six conditions for approval Mayor Garrett called for public comment. Mr. Kelly Taylor, 1720 Second Street, spoke against the zoning change. His home was located in Lot 6, which was five feet from the right side of the proposed parking lot He stated that Christus Spohn was encroaching into the adjacent residential neighborhood. He was concerned that if the Council approved this zoning change, then the Future Land Use map of the area would need to be amended to allow for "B-1" zoning, rather than the approved "A-1" zoning. In addition, he had issues with the lighting, drainage problems, landscaping, depreciated property values, and traffic the proposed parking lot could generate. He showed a PowerPoint presentation Illustrating his points Mr. Taylor stated that hospital employees and visitors currently parked along Second Street In the residential areas. He said that he was unable to park in front of his own home. He and his roommate had to double- or triple-park In their driveway He said he was working with Traffic Minutes - Regular Council Meeting May 23. 2006 - Page 11 Engineering to obtain a parking permit to address this issue. Mr. Gunning stated that the street in front of these homes was a public right-of-way, so on street parking was permitted. He said staff did not regulate who parked along the street. Mr. Garcia said he could understand why Mr. Taylor was upset if he could not park on the street in front of his own home. Mr. Kelly stated that Mr. Tayfor's point was that Christus Spohn had already expanded past Ayers Street and into the neighborhood to the extent that he could not park in front of his home like in other neighborhoods. Mr. Gunning replied that staff would assist Mr. Taylor's efforts in obtaining parking permits from the city's Traffic Manager Ricardo Guzman In response to Mr. Noyola's and Mr. Marez's question, Mr. Gunning stated that Christus Spohn initiated construction on the parking lot without a landscaping plan because the original building permit issued by Development Services did not require it. However, once staff became aware that the planned uses for the parking lot differed from the uses allowed under the permit, they asked Christus Spohn to stop construction and seek a zoning change. Mr. Taylor stated that he had documented a number of code violations that had taken place on the property. Mr Noe replied that staff could not enforce any code violations until the zoning change request was finalized. Mr. Noyola was concerned that while Christus Spohn could address most of the issues related to screening, landscaping and drainage, the proposed parking lot would still detrimentally affect the property values ir the neighborhood. Mr. Kelly asked Mr. Taylor if he was opposed to the parking lot mainly because the residents were sensitive to any encroachment across Ayers Street. Mr. Taylor replied affirmatively, saying that Christus Spohn could have purchased property on Morgan Street to avoid encroaching on the neighborhood. He said that no matter what Spohn did to the parking lot, it would still negatively affect the neighborhood's property values Mr. John Bell. 13750 Primavera, representing Christus Spohn Health System, stated that the project was permitted before Spohn began construction. In Spohn's view, the parking lot was serving the adjacent Spohn campus; thus. it was being developed for adjacent property use and complied with the code Spohn had completed 40 percent of the project when Development Services notified them that Ayers Street separated the parking lot from Spohn such that the parking lot was not adjacent. and thus required a zoning change Mr. Bell stated that due to the major construction In the area, Spohn needed parking spaces for Finance department employees from 700 a.m. to 7:00 p.m. only. At the Planning Commission meeting when the case was heard, he said that Spohn addressed the drainage issue by confirming that the drainage for the parking lot would be drained away from Mr. Taylor's residence. In addition, he said Spohn agreed to landscaping standards exceeding those required in the "B-1" district. The parking lot would have an ornamental front fence, controlled access. and a screening fence along the side He introduced Mr Tim Burgunder with Christus Spohn who could also comment on their plans Mr. Marez asked Christus Spohn what their future expansion plans were for the area, noting that the neighborhood was concerned about any further encroachment beyond Ayers Street. Mr. Bell replied Spohn's master development plans were more toward the west and north of the current campus. Mr. Marez stated that if the Council were to approve this zoning change, he would like to see the City add at least one more condition added to the six conditions proposed by the Planning Commission to protect Mr. Taylor's property Mayor Garrett called for a brief recess to present proclamations. He said the Council would Minutes - Regular Council Meeting May 23, 2006 - Page 12 hear petitions from the audience when the meeting resumed, and then continue the discussion on Item 15, the Christus Spohn zoning case * * * * * * * * * * * * * The Council returned from recess. Mayor Garrett called for petitions from the audience. Mr. Daniel Allen, 823 S. Water St. #5F, spoke regarding his concerns about the Memorial Coliseum RFP. He pointed out that he had made an informational display for public viewing in the rear of the Council chambers. He also asked for information regarding the zoning change process for a PUD. Ms. Faryce Goode-Macon with Development Services replied the zoning change process for a pu~ was the same as for any zoning case, and the 20 percent rule would apply (seven Council members would have to support the zoning change). Mr. Allen stated that it was possible, based on the property ownership in the area, that the proposed Boardwalk on the Bay project could fail to get enough Council votes for passage. Mayor Garrett noted that a number of individuals indicated that they would like to speak regarding Lakeview Acres. He said city staff was meeting with group now regarding their concerns. Mr. Ram Chavez, 1642 Sandalwood, and Mr. Juan Saenz, chairman of the Mayor's Committee on Veteran Affairs, invited the Council to attend their Memorial Day ceremonies at 10:00 a.m, Sherrill Park Mr. Phil Rosenstein thanked the city and the Council for providing exemplary services for senior citizens in the area. k * * * * * * * * * * * * Mayor Garrett resumed discussion on Item 15, the Christus Spohn zoning case. Mr. Kelly asked questions regarding Spohn's landscaping plan and screening requirements. Mr. Garcia expressed concern that Mr. Taylor wasn't able to park on the street in front of his own residence. Mr. Tim Burgunder with Christus Spohn Health System, stated that he had spoken with Mr. Taylor and offered him a complimentary space in the proposed parking lot with a handheld remote to control access. He said he had eliminated entrance and exit portals on Ayers Street to address the concerns of the Del Mar Association about traffic, and quadrupled the landscaping requirements along the south side of the parking garage. Mr. Burgunder discussed Spohn's problems with parking due to the major construction in the area He said he was offering valet parking to patients in the parking lot next to the doctor's office tower now, and if he was able to move employee parking to another lot, it would relieve the pressure on that lot. He said Spohn's master plan did not include any development south of Ayers Street. Finally, he said Spohn had engaged a contractor for the parking lot that claimed to have obtained the proper permits Ms Eleanor Carte, 1726 Second Street, spoke against the zoning change because she felt the proposed parking lot would devalue her property and generate excess traffic. Mr. Jack Cooper, 510 South Staples, spoke against the zoning change because he was concerned that Christus Spohn was encroaching upon the residential areas south of their Shoreline campus In response to Mr. Noyola's question, Ms. Faryce Goode-Macon with Development Services replied that the 20 percent rule was not in effect, and she did not think the neighborhood could meet Minutes - Regular Council Meeting May 23, 2006 - Page 13 that percentage because Spohn Hospital owns the majority of the property in the affected area. Mr. Marez spoke against the zoning change because he wanted to protect the Del Mar area neighborhoods He said he did not want Mr. Taylor's property to become the buffer zone for Spohn's development. Mr. Garcia made a motion to close the public hearing, seconded by Mr. Chesney, and passed. City Secretary Chapa polled the Council for their votes as follows: 15 ORDINANCE NO. 026792 Amending the Zoning Ordinance, upon application by Christus Spohn Health Systems by changing the zoning map in reference to Bayfront Terrace, Block 4, Lots 10-13, (currently zoned "A-1" Apartment House District and "AB" Professional Office District) by granting a Special Permit for a parking lot on Lots 10, 11, 12 and 13, and subject to a revised site plan and six (6) conditions; amending the Comprehensive Plan to account for any deviations from the existing Comprehensive Plan An emergency was declared, and the foregoing ordinance was passed and approved with the following vote: Garrett, Chesney, Garcia, Kinnison, and Scott, voting "Aye"; Kelly, Marez, and Noyola, voting "No"; Cooper was absent. ~ ~ . ~. * * * * ~ * * * * Mayor Garrett opened discussion on Item 16 regarding appointments to the Corpus Christi Reinvestment Zone Number Two Board of Directors. City Secretary Chapa reported that the current members were as follows: Samuel L. Neal Jr.; Javier Colmenero; Brent Chesney; Rex Kinnison; John Longoria; Jesse Noyola; Mark Scott. and Melody Cooper. He said the Council could appoint up to 10 members Mayor Garrett made a motion to appoint the current members of the Council to the Board, with the exception of Mr. Kelly, who had a conflict of interest; and to appoint Mr. Neal and Mr. Longoria The motion was seconded There were no comments from the audience. City Secretary Chapa polled the Council for their votes as follows: 16 MOTION NO. 2006-154 Motion appointing Henry Garrett. Brent Chesney, Rex Kinnison, Jesse Noyola, Mark Scott, Melody Cooper, John Marez. Jerry Garcia, John Longoria, and Samuel L. Neal Jr. as City of Corpus Christi Board Member Representatives to the Corpus Christi Reinvestment Zone Number Two Board of Directors The foregoing motion was passed and approved with the following vote: Garrett, Chesney, Garcia, Kelly Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent. Mayor Garrett opened discussion on Item 17 regarding a construction contract for Bond Issue 2004 Golf Course Improvements for the Gabe Lozano Senior Golf Center. City Secretary Chapa noted that the Item needed to be amended to show that Golf Course Builders International Inc., the contractor, was from Baton Rouge, LA not from Gainesville, FLA. Mr. Kinnison made a motion to amend the item as stated by City Secretary Chapa, seconded by Mr. Kelly, and passed. City Engineer Angel Escobar reported that the city had received bids for the golf course Improvements. He referred to a handout that outlined the construction schedule for the project. He said the construction for the Back Nine would begin in June. The entire golf course would be closed Minutes - Regular Council Meeting May 23, 2006 - Page 14 during July through September. The Front Nine would begin construction in October. He said the parking lot would be completed in September. Mr. Escobar reviewed the proposed base bid improvements as follows: resurfacing of existing parking lot and entrance drive; landscape plantings around perimeter of parking lot and entrance drive; resurfacing of all 18 existing putting greens and the existing practice green; a new chipping green; perimeter bare area renovation to include additional irrigation and regressing; drainage improvements at NO.1 tee, No. 10 tee, and No. 14 fairway; resurfacing of all tees and expansion of selected teeing areas; fairway expansion and additional bunkers on NO.6 fairway, No. 12 green, and at No. 17 fairway and green; reconfiguration of bunkers at No. 13 green; additional grass bunker on No. 15; lakeshore expansion and shoreline stabilization on Nos. 1 and 9; and re- routing of cart path on No. 10 fairway landing area and from NO.9 Executive and clubhouse. In response to Mr. Marez's question, Parks and Recreation Director Sally Gavlik stated that staff would be offering golfers different discounted packages for Oso Golf Course and/or to combine the driving range and the Executive 9 at the Gabe Lozano Course. She said staff acknowledged that revenues would decrease during the construction period, but was making an effort to retain business Mr. Marez stated that the Pharaoh Country Club golf course was for sale, and he suggested that staff look into purchasing the course for future use. He said it might be better to purchase an existing course rather than build a new course. City Manager Noe replied that staff would provide him with a report on the idea. Mr. Kelly stated that If the city were planning to build another municipal golf course, he would like to see a site in the Northwest area. There were no comments from the public. City Secretary Chapa polled the Council for their votes as follows: 17 MOTION NO. 2006-155 MotIon authorizing the City Manager or his designee to execute a construction contract with Golf Course Builders International, Inc., of G::!inesville, Florid::! Baton Rouge, Louisiana in the amount of $1,197,453 for the Bond Issue 2004 Golf Course Improvements (Existing Courses) project for Gabe Lozano Senior Golf Center. (BOND ISSUE 2004) The foregoing motion was passed and approved as amended with the following vote: Garrett. Chesney, Garcia, Kelly. Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent Mayor Garrett opened discussion on Item 18 regarding a code amendment to provide a truck route on Parr, Ahern, and Bluntzer Streets. Assistant Director of Engineering Services Kevin Stowers explained that Traffic Engineering received a complaint from a resident about truck traffic on Parr Street generated by Gulf Compress, a cotton bale storage and distribution center. He said staff's review indicated that the area had been re-zoned residential, and truck traffic was prohibited on the surrounding streets. After speaking with Gulf Compress representatives, staff determined that the layout and design of the compress necessitated the use of residential streets during the cotton season. He said the facility handled approximately 60 percent of the cotton in the southern third of the state that IS shipped out of the Port of Corpus Christi. Mr. Stowers stated that 37 property owners were notified; of the 37 owners, two expressed Minutes - Regular Council Meeting May23,2006-Page15 concern about childrens safety, one was opposed, and one had no objections. He said the Transportation Advisory Committee recommended unanimous approval of the ordinance with the condition that cautionary signage be erected to slow traffic down. Mr. Stowers stated that a property owner who signed up to speak at the Transportation Advisory Committee meeting did not hear his name called during the public hearing. The gentleman provided 15 signatures in opposition to the ordinance, but some of the signers did not live on the street in question. Legal counsel determined that this did not affect the validity of the public hearing. in conclusion, Mr Stowers said staff and the Transportation Advisory Committee recommended approval of the ordinance as amended In response to Mayor Garrett's question, Mr. Stowers said the cotton season extended from August to October or November Mayor Garrett asked for public comment. Mr. Francisco Garcia, 221 Parr, stated that he was the gentleman who did not hear the call for public comment at the Transportation Advisory Committee meeting. He said his home was directly in front of the entrance/exit driveway to the warehouse, located at the midpoint of Parr Street. He spoke against the request to allow heavy truck traffic on Parr, Ahern, and Bluntzer Streets because of the noise and dust generated by the trucks. Mr. Kelly asked If the city planned to upgrade the said streets to better handle the heavy truck traffic Mr. Stowers answered negatively, but noted that the streets had been carrying the traffic since the 1920s when the cotton plant was constructed. In response to Mr. Kelly's question, Mr. Stowers said Gulf Compress had looked at other options before asking for this code amendment, including acquiring private property or building a private road, but were unable to finalize them. Besides closing the facility, Gulf Compress had no other options at this point. Mr. Kelly asked if Gulf Compress had any plans to phase out the facility. Mr. Stowers answered affirmatively, saying that Gulf Compress eventually planned to expand their La Quinta facility and close this plant Mr Kelly stated that the neighborhood needed more protection besides signage. Mr. Stowers concurred, saYing that staff could speak with the residents to explore the issue. At this POint, he said the city was limited in terms of street improvement funding that was not included in a bond proJect. Mr. Garcia asked if Gulf Compress could construct a concrete entrance and exit to mitigate the dust problem Mr Bob Weatherford, CEO of Gulf Compress, 201 N. 19th Street, replied that the street exit on Parr Street was made out of concrete. He explained the history of his company's attempts to acquire right-of-way from Union Pacific Railroad and from a homeowner to no avail. He said the plant used to be serviced by rail, but Tex-Mex Rail ceased servicing them. He said the only sites that were serviced by rail were their Port Plant and La Quinta Plant. He explained that the company hoped to double their business at the La Quinta site and then expand that site, but at this point the 19th Street site would have to remain in operation. City Secretary Chapa polled the Council for their votes as follows 18 E!RST READING ORDINANCE Minutes - Regular Council Meeting May 23, 2006 - Page 16 Amending the Code of Ordinances, City of Corpus Christi, Chapter 53, Traffic, revising Section 53-251, Schedule II by adding the category "Other Through Streets"; by adding Parr Street, from Comanche Street to Ahern Street, Ahern Street, from Parr Street to Bluntzer Street, and Bluntzer Street, from Ahern Street to Agnes Street; providing for penalties. The foregoing ordinance was passed and approved on its first reading with the following vote: Garrett, Chesney, Garcia. Kelly, Kinnison, Marez, Noyola, and Scott, voting "Aye"; Cooper was absent . * ~. * * * * * * * * * * Mayor Garrett referred to Item 19, a presentation on the Crime Control and Prevention District Quarterly Project update. Acting Chief of Police K.A. Bung reported that the Crime Control District's financial projections for the remainder of FY 2005-06 looked healthy. He said Police department staffing was much improved. The last police academy yielded 29 cadets, and 21 cadets were in the current academy and due to graduate in October. In total, the Police department would have 445 officers, just three officers below budgeted strength. He said the Police department planned to request an academy of 25 cadets in January, and hoped to receive funding. Thanks to an aggressive recruitment campaign, he said the department had more applicants now than at the same time before the last academy Chief Bung said that staff needed Council direction on when to hold the next Crime Control District election, either In April 2006, April 2007 or November 2007. In addition, staff needed direction on whether the Council wanted a five-year or ten-year renewal period. Mr Butch Pool, preSIdent of the Crime Control District Board, reported on the status of the FY 2005-06 budget. He said that the district was currently 75 percent into the budget year. Expenditures were at 71 percent of budget, and revenues had increased over three percent over projections He noted that the Pawn Shop Detail was fully funded. He said the district continued to focus on Core Programs like the Juvenile Assessment Center, the Pawn Shop Detail, and funding for 50 police officers In addition. he said the district continued to focus on long-term fiscal responSibility and control. Mr. Pool discussed the proposed FY 2006-07 budget. He said total expenditures were projected at $4,756,050, including increases in personnel (three percent), group insurance (ten percent) and self-insurance (eight percent). He said total revenues were projected at $4,685,495, assuming a 3..5 percent revenue increase. The ending fund balance was projected to be $2.007,843 Mr. Pool discussed the FY 2006-07 budget calendar as follows: May 2 - CCD public hearing and budget adoption: June 13 - City Council public hearing; and June 27 - City Council approves or rejects CCD budget As Chief Bung mentioned, Mr. Pool stated that the Crime Control District Board had planned for a November 2006 election unless otherwise directed by the Council. The Board was also recommending a ten-year renewal period Commander Bryan Smith reported on the status of the 2005 Project Report. He discussed the progress of the pawn shop detail, directed patrol program, bicycle patrol program, walking motors patrol program, Campus Crimestoppers Program, and the Juvenile Assessment Center. Regarding the Pawn Shop Detail, he said since November 2005,296 items were recovered that were valued at $203.300, compared with only $38.118 at the same time last year. Minutes - Regular Council Meeting May 23, 2006 - Page 17 Regarding the Campus Crimestoppers Program, Commander Smith said that the program would be expanded during the FY 2006-07 school year to include Robstown, Banquete, Agua Dulce, Driscoll, and Bishop ISDs. In addition, he said Miller High School and Driscoll Middle School were named "Programs of the Year" by the state Regarding the Juvenile Assessment Center, he said the year-to-date intakes were 702, with an active caseload of 95 juveniles. He said they were currently compiling the annual report. He announced that Superintendent Mariah Boone had left the city's employ on May 12th, and Lisa Oliver and Beth Hartman with the Parks and Recreation department were assisting in her absence. Mayor Garrett discussed the timing of the Crime Control District election. City Secretary Chapa stated that if the election were held in November 2006, it would be the only city issue on a long ballot. If the election were held In April, then the city could combine costs for the election. The Council concurred that that election should be held in April 2007 for a ten-year renewal period. Staff then responded to Council questions about the Police Athletic League (PAL) and Pawn Shop Detail. ~ ~ ~ * * * * * * * * * * Mayor Garrett called for the City Manager's report. City Manager Noe reported that the following items were scheduled for consideration at next Tuesday's meeting: proposed FY 2006-07 budget; final increment bond issuance for Packery Channel, including a Reinvestment Zone Board and North Padre Investment Board meetings; three tax abatements for downtown housing projects; a natural gas supply contract and the award for the Cimarron Phase 2 project, which came in under budget. Mayor Garrett asked City Manager Noe to place the coliseum redevelopment process on the agenda next week. He also asked for an executive session related to economic development and lease issues for the coliseum redevelopment. Mayor Garrett thanked Assistant City Manager Ron Massey and staff for the lift station at Staples and Yorktown Boulevard He also thanked staff for fixing the flagpole at Sherrill Park. Mayor Garrett called for Council concerns and reports. Mr. Noyola asked for a status report on the construction at Greenwood Senior Center. He also asked if there was a phone number that persons with disabilities could call for more information on hurricane evacuations. City Manager Noe replied that he would provide the Council with the phone number; staff was also including a utility bill insert with more information Mr. Scott stated that if the Council was going to discuss the coliseum redevelopment process, he asked staff to provide all the original documents so people could have the full context of the city's decisions In addition, he noted that staff had withdrawn the Yacht Show lease item at Mr. Kinnison's request. and he asked staff to take care not to discourage the owner from putting on the show There being no further business to come before the Council. Mayor Garrett adjourned the Council meeting at 1 45 p.m. on May 23 2006. - ~ ~ * * * * * * * * * * 2 a TRANSPORTATION ADVISORY COMMITTEE - Four (4) vacancies with terms to 4-30- 08 and 4-30-09. DUTIES: To be responsible for public advisory jurisdiction and citizen traffic safety investigation, traffic accident, injury and damage prevention in the City; developing and implementing coordinated traffic safety programs which meet local needs; acting in an advisory capacity to the City Council and the City Manager in the coordination of traffic safety activities of the official agencies and departments of the City; promoting public acceptance of official programs proposed or initiated by the City; fostering public knowledge and support of traffic law enforcement and traffic safety problems; cooperating with public and private school systems in promoting traffic safety training aids in the schools; promoting the education of the public in traffic safety and, generally assisting in the overall reduction of traffic deaths, injuries, damage, and accidents on the City's streets. COMPOSITION: Nme (9) members appointed by the City Council for three-year terms to provide advice on transportation and traffic safety matters. One member has traditionally been the incumbent security officer at the Naval Air Station. Elects Chairman and Vice-Chairman annually. Meets 4th Monday of the month, at 2:00 p.m., City Hall, Council Chambers. MEMBERS William Green, Chair *****Don Davenport Richard Bailey, Sr. Alex McNair Robbie Foster ***Grace M. Gonzalez *David V. Seiler *Daniel Carrizales MAC Misty Galang (NAS Security Officer) TERM 4- 30-07 4-30-06 4-30-08 4-30-07 4-30-07 4-30-08 4-30-06 4-30-06 4-30-08 ORIGINAL APPTD.DATE 5-11-04 1-11-00 5-10-05 5-11-04 4-11-00 2-13-01 5-13-03 12-20-05 12-20-05 *Seeking reappointment ***Resigned *****Has met the six-year limitation allowed by ordinance and is ineligible for reappointment ATTENDANCE RECORD OF MEMBER SEEKING REAPPOINTMENT NAME David Seiler DanIel Carrizales NO. OF MTGS. THIS TERM 7 NO. PRESENT 2 4 4 % OF ATTENDANCE LAST TERM YEAR 29% 100% (Note: The City Secretary's Office was not notified of David Seiler's attendance record and consequently he was not terminated when his absences exceeded the 25% absence rule. Mr. Seiler was absent due to work related issues with the Regional Transportation Authority and he is requesting reappointment.) OTHER INDIVIDUALS EXPRESSING INTEREST Karen Beard Injury Prevention Specialist, Driscoll Children's Hospital. Activities include: Head Start Health Advisory Committee, Citizens Advisory Health Board, Flour Bluff PEP Advisory Council, First Baptist Church and recreation and youth committees. (12-09-05) Joseph Hroch Teacher, Texas Driving School. Received B.S from uc.c. and graduate work at Corpus Christi State University and Montclair State University. (7-01- 04) Carolyn Moon Retired Teacher, Corpus Christi Independent School District. Received M.A. in Communications and Special education. Active member of the League of Women Voters and the Texas Democratic Women. (4-29-05) Dan Owen Director of Operations, Goodwill Industries of South Texas, Inc. Received B.A. in Political Science and Economics from Texas A & M - Corpus Christi. Activities include: Community Service Chair elect for Rotary Club, Ambassador to Chamber of Commerce and United Way Volunteer/Speaker. (4-21-06) Cur11S '\. Rock Business Development Manager, Rock Engineering and Testing Laboratory, Inc. Received B.A. in Management Information Systems. Activities include: Associated Builders and Contractors, Leadership Corpus Christi, W orId Affairs Council of South Texas, Chamber of Commerce and Hispanic Chamber of Commerce. (4-04-06) b. WATER SHORE ADVISORY COMMITTEE - Five (5) vacancies with two-year terms to 5- 10-08, one representing the Scientist category. DUTIES: To advise and make recommendations regarding development and use of the Waterfront, the Water i\.rea, and the Marina. COMPOSITION: Nine members appointed by the City Council for two-year terms. The membership must include one Scientist, i.e. Marine Biologist, one Engineer, and one Environmentalist. The Chairman of the Water Shore Advisory Committee shall act as an adVISOry to the Park and Recreation Advisory Committee and vice versa. MEMBERS Roy L. Pell, Chairman **Brien Nicolau *Phillip Lara *Victor Menaud Chris Burnett (Environmentalist) Dr. Oscar GarcIa **William Grant Fergeson **Dr. Joe Morris Fox (Scientist) Dan S. Leyendecker (Engineer) TERM 5-10-07 5-10-06 5-10-06 5-10-06 5-10-07 5-10-07 5-10-06 5-10-06 5-10-07 ORIGINAL APPTD. DATE 9-28-99 5-11-04 5-11-04 5-11-04 5-17-05 3-07 -00 5-21-02 5-11-04 6-12-01 *Seeking reappointment **Not seeking reappointment ATTENDANCE RECORD OF MEMBER SEEKING REAPPOINTMENT NAME Phillip Lara Victor Menaud NO. OF MTGS. THIS TERM 10 10 NO. PRESENT 7 % OF ATTENDANCE LAST TERM YEAR 70% 70% OTHER INDIVIDUALS EXPRESSING INTEREST Robert Cagle Vice President-Turnaround Division, Repcon, Inc. Received B.S. in Engineering Science and Mechanics and M.A. in Business Administration. Member of the Rotary Club of Corpus Christi. (4- 21-05) James H. Davis Self-employed. Received B.A. from Texas A & M University u Corpus Christi. Activities include: Board of Directors for CASA, Founder and President of Sunny Beaches, and volunteer for many adult and youth regattas sponsored by BYC and CCYC. (3-17-05) Dr. George H. Fisher President, Ear, Nose and Throat Associates. Received M.D. from the University of Alabama Medical School. Certified Commercial and Airline Transport Pilot, Single and Multiengine and Instructor Pilot. Activities include: Director- American Bank, former member of C.C. Yacht Club, YMCA and former Chief of Staff of Driscoll Children's Hospital. (3-30-06) Ed LaBay Vice President, AG/CM. Received a B.S. in Building Construction from Texas A & M University. Active member of the Windsor Park PDM Committee. (4-07-05) Neil McQueen Self-employed, Environmental Consultant. Received a B.S. in Science - Engineering Technology at Texas A & M University and a Certificate in Hazardous Materials Management for the University of California. Served on the Environmental Affairs Committee and is a current member of the Surfrider Foundation, Texas Coastal Bend Chapter. (Environmentalist) (5-12-05) W. Chuck Rushing Branch Manager, Fugro Consultants LP. Received B.A. and M.A. in Civil Engineering. Activities include: Consulting Engineer Council, American Institute of Architects and avid cyclist, sailor, runner and fisherman. (7-29-05) Robert R. Vega Fish Hatcheries Program Leader, Texas Parks and Wildlife Department. Received B.S. in Marine Biology, M.S. in Biology and Ph.D. in Fisheries Sciences from Texas A & M University. Active in both professional and church activities and adjunct instructor. (Scientist) (5-19-06) 3 COUNCIL MEMORANDUM RECOMMENDATION: Motion approving the purchase of six (6) pickup trucks, two (2) cargo vans and seven (7) sedan.o;; from the followmg companies for the following amounts in accordance with Bid Invitation No, 81-0123-06, based on low bid and low bid meeting specifications for a total amount of $216,558. The vehicles are purchased for Maintenance Services and Police. All vehicles are replacement UnIts. Funds are available in the Law Enforcement Trust Fund and the Operation budget of the General ServICes Department Champion Ford Corpus Christi, Texas Pickups and Vans $124,R72 Access Ford Corpus Christi, Texas Sedans $91,686 Grand Total : $216.558 ******************************************************************************************* Purpose: The (6) ~.' Ton Ext. Cab Compact Pickups and (2) % ton Full Size Cargo Vans are replacement units that will be used by Maintenance Services. The (7) Series S-2 Intermediate 4-door Sedans are replacement units as well v..hich will be used by the Police Department. Bid Invitations Issued: "1 welve Blds Received 1 hree Price Analysls Pricing has remained stable smce the last purchase of these types of vehicles. Award BaSIS: Low bid - Item 2 & 3 Low bid meeting specification-- Item I The bid submitted by Access Ford, Corpus Christi, Texas does not meet the requirements of a compact pickup. Funding: Maintenance Services 550020-51 10-40190 550020-5110-40120 Law Enforcement Trust 550020-1061-821001 $110,000 14,872 Total 91.686 $216,558 ...---'~- --- ------ Michael B era, Procurement & General Services Manager CITY OF CORPUS CHRISTI PURCHASING DIVISION BUYER GINA SANCHEZ BID TABULATION BI-0123-06 SEDANS. PICKUPS & VANS A.CCESS FORD CHAMPION ALLEN SAMUEL CORPUS CHRISTI, TX CORPUS CHRISTI, TX CORPUS CHRISTI, TX UNIT EXTENDED UNIT EXTENDED UNIT EXTENDED ITEM DESCRIPTION QTY UNIT PRICE PRICE PRICE PRICE PRICE PRICE (1) ",eries (PU. ) 6 each <- 1 bA L' $ SJ2.502 $ 15.475 $ 92,850 $ 16,381 $ 98,286 " Ton EX1 Cab ompact Pickup with Spray in Bed Liner, i\luminum Saddle Box Cab Guard Maintenance Services '-)\ <,eries (V-4 3/4 Ton 2 each 1b.169 32.338 16.011 32,022 16,612 33,224 Lj Fuil Size Cargo Van with Bulkhead Protector (;Iass in Rear Panel Doors Only Roof Top Ladder Race - Maintenance Services 3) Series (8-2 each 13098 91,686 13.198 92.386 14.500 101,500 intermediate 4doo' Police 'otal Aware $ 91,686 $ 124,872 ;rand Total $ 216,558 1 ! Bid does not meet the requirements at a compact pickup 4 AGENDA MEMORANDUM RECOMMENDATION: Motion approvmg a supply agreement with National Meters, Inc., Lancaster, Ohio, for approximately 8.000 gas service regulators in accordance with Bid Invitation No. 81-0124-06. based on low bid, for an estimated annual expenditure of $103,600, ,d' which $17,266.67 is budgeted in FY05-06. The tem1 of the agreement shall be for twelve months with an opti~)I1 to extend fpr up to two additJ\)nal twelve-month periods, subject to the dpproval 01 the supplier and the City Manager or hi:- designee. Funds have been budgeted in F'{05/06 and requested (or FY060-. ............................................................................... BACKGROUND: Purpose: These regulators will be purchased and used by the Gas Department. They are used to reduce the pressure of natural gas from the mall1 line to the required level for residential customers. Previous C"ntract The previous contract \\(lS not extended due to revisions to specificatIOns. RHI Invit:ltHlns Issued Sc\entcen RIds Rec(~i\ cd: 1'1\ C \ ward BasI" Low RId L1nding Gas Department 'i2015()-4\30-341]O FYO)-06 $17,266.67 [otal $17,266.67 r (j" .~, I: '.'. ". i jJ' \ :. \ --//- \ , , ". \ '... .'!-- \otic aeT~~Te~a Y .- Procuremcn\ & General Sen ices Manager <D o .C/) "'"0:: ~o 9f- -<( cn-1 0:::::> ziB zO:: ow f-O <(- f-> _0:: >w zC/) oC/) -<( cn(9 8 f- ~ ~z8 0::0....1 r5{/)<( C/)>~ :::::>_....1 a..O~ o::(9B:: oz~ O(l)<!> u....<( OIQ:: >-ow 1-0::>- o5:~ o u a:: w f- ~ ~ ~ ~ u ~ f- ::3 ii: {J? Z ii: ~ ~ :::J CL ~ :r ;,( z (/) 0 f- W ii: f- - U < z Z ii: f-W:::JCL U ~ ~ U ~ a:: W I tLi 0 ::E ci -' W ~ ~ f- W o <( Z ~ i= ~ :::J g: < < ~ <i l3 f- - o a:: f- CL X f- Z a:: ~ !::: t$ o ~ ~ ii: &:l 0 CL (/) I < ii: f- (/) :::J Cl X Z f- e;; Z - 0 Z f- ~ (/) (!) :::J (J 0 ::E I < w f- ~ o a:: I- CL f- W _ U Z - :::J g: -' W ~ ~ o a:: f- CL < ::3 f- - o a:: f- CL -' W ~ ~ o a:: I- CL :::> :::0 :::0 <t :::0 .D N '::-.I fA cry J:i N fA ---0--- a c:i a '" cO '" N fA :> '" .~ N ,~ o o c:i '" <t <i N 4't '-!) en cD 4't 0--- '" c:i "" "" ..0 1. " .[) ci ;,.q. I ~ I OJ,) :~ .~ 'R !::: 5 I .:J <( -11 r: o ~ xo Z o f= CL ii: U (f) W o J) <( '!) W CL >- (/) I- a:: -" 0 ':! f- f- :5 Z :::J UJ (!) g W ~a:: a:: W U 5 >( a:: W (J? ::E w >- c o o <t o U") N N fA co co 6 o o "" a N fA o a a a <t <i N fA o a a a o <Ii ;;> ~ """ o I- 5 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 05/30/06 AGENDA ITEM: Motion authorizing the City Manager or his designee to sign an agreement with the CHRIS TUS Spohn Health System for the provision of medical director services in the amount of '530,000 for the City's Emergency Medical Services and emergency medical educational services. ISSUE: Texas State I aw requires that every Emergency Medical Service (EMS) that provides advanced lIfe support servIces to have a licensed physician who oversees the provision of medical servIces Dr. David Blanchard has served as the Medical Director for the EMS Division of the C'orpus Chnsti Fire Department since January 2002. Dr. Blanchard has informed the Fire Department of his plans to relocate and will not be able to continue providing these services. ('HRISTUS Spohn Health System, through Memorial Hospital, provides online medical control for the City and is the designated Trauma Center for the twelve counties comprising the Coastal Bend region. In additIon, the CHRISTUS Spohn Health System is in the formative stages of implementing an emergency medIca] resIdency program in conjunction with Texas A&M University Health Science Center fhese activities in combination with the City's need to identify a new Medical DIrector has resulted in a unique opportunity to Join forces for the mutual benefit of the City, ( 'HRISTUS Spohn Health Systems. and the Texas A&M University Health Science Center. \s a result of discussions between the City and CHRISTUS Spohn Health Systems, it is being proposed that the City and CHRISTUS Spohn Health Systems enter into an agreement by which the ("lty will support the emergency medical residency program, and CHRISTUS Spohn Health Systems wIll coordinate the MedIcal DirectIOn for the City. FUNDING: The City has budgeted the required $30,000 for the Medical Director services in the current 2005-2006 Budget and the proposed 2006-2007 Budget. REQUIRED COUNCIL ACTION: State law, rules and regulations require a Medical Director to supervise the delivery of invasive medical acts performed by pre-hospital providers. Approval of thIs item will satisfy all State requirements, and pennit the EMS Division to continue providing advanced level services within the City , Documents and Settings'M]S\My Documents\Agenda [temsl2006 Med DiT Agenda Item,doc PREVIOUS COUNCIL ACTION: The Council approved the last agreement for an EMS Medical Director on Janual) 4, ~)OO ~ CONCLliSION AND RECOMMENDATION: It is recommended that the Council authorize the City manager, or his designed to execute the agreement with CHRISTUS Spohn Health Services for Medical DIrection of the C ,lrpUS ChristI Fire Department and for the medical educational services. ~ R2J~ing Chief Corpus Christi Fire Department Attachment Agreement Summary C \Document> and Settmg,IMIS'M\ Documents'Agemla Items 2006 Med Dir Agenda Item.doc AGREEMENT SUMMARY The City appoints CHRISTUS Spohn Health System as the Medical Director of EMS II. Services provided by CHR ISTUS Spohn Health System Corporation: L\ Will serve as liaison to the medical community. B. Dewlop protocols and standing orders for EMS personnel. C. Consult on all EMS equipment to be purchase. D issue required prescriptions for pharmaceuticals that may be used with EMS E. Approve all personnel permitted to function as a medical care provider \vithm the Corpus Christi Fire Department. F Approve EMS traming programs and training personnel. G. Conduct and oversee quality assurance activities to insure that field personnel are perfonning in accordance with approved protocol and accepted standards. II. Advl se the C tty regarding creatIOn and enforcement of ordinances pertaming to emergency medical services, disaster preparedness, and communications and dispatching procedures related to EMS. II L City Suppon A. The City shall supply reasonable office space and support staff for the creatIOn of audio and visual aids for EMS related presentations. B. The c'ity agrees to participate in efforts to improve emergency care education for EMS by collaborating with Contractor and the Texas A&M University Health Science Center in the development of an emergency medicine program at Contractor's facility. 1\ . Liabi!tty A. The Contractor shall not be !table for any civil damages in connection With the performance of any service under this agreement. B. The ('ity shall hold Contractor harmless, defend, and indemnify contractor against any and all liability for damages. \ Terms of Contract A. The City agrees to pay Contractor $30,000 per year. B. Agreement shall be for a two years and shall be automatically renewed under identical terms for two year terms thereafter. C. Either party shall have the right to terminate this agreement at any time upon 90-day written notice to the other party. 6 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 5/30/06 AGENDA ITEM: A Ordinance appropriating $1,000 from the Wal-Mart Foundation in the General Fund No. 1020-11700; amending the FY2005-2006 Operating budget adopted by ordinance 026385 by increasing the amount approved by $1,000; and declaring an emergency. B. Motion approving payment in the amount of $1,000 to the Police Explorers Post #133 for purchase of equipment and training of the Police Explorers. ISSUE: The Wal-Mart Foundation has provided the Police Department $1,000 for use by the Police Explorers. BACKGROUND INFORMATION: The local Police Explorers Post is a program of the Boy Scouts of America, In association with local law enforcement agencies, for young men and women interested in Law Enforcement. Explorers are 15-21 years of age and have an interest in law enforcement or a future in a Criminal Justice field. Throughout the year they are trained in a range of law enforcement topics such as arrest and search, traffic stops, accident investigation, and other community safeness topics. They also contribute countless volunteer hours to the community. The Explorers will use the funds for the purchase of equipment such as badges and uniforms, and for the travel associated with their stage, regional, and national competitions. REQUIRED COUNCIL ACTION: Appropriation of funds and approval of payment. CONCLUSION AND RECOMMENDATION: Staff recommends appropriation of funds and approval of payment K~4- Acting Chief of Police Attltchments: ORDINANCE APPROPRIATING $1,000 FROM THE WAL-MART FOUNDATION IN THE GENERAL FUND NO. 1020-11700; AMENDING THE FY 2005..2006 OPERATING BUDGET, ADOPTED BY ORDINANCE NO. 026385, BY INCREASING THE AMOUNT APPROVED BY $1,000; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $1,000 from the Wal-Mart Foundation is appropriated in the General Fund No. 1020-11700 for purchase of equipment and training of the Police Explorers. SECTION 2. That the FY 2005-2006 Operating Budget, adopted by Ordinance No. 026385, is amended by increasing the amount approved by $1,000.00. SECTION 3. That upon written request of the Mayor or five Council Members, the City Council (1) finds and dedares an emergency due to the need for immediate action for the efficient and effective administration of City affairs; and, (2) suspends that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings, so that this ordinance is passed and takes effect as an emergency measure upon its first reading on this the 30th of May, 2006. ATTEST: THE CITY OF CORPUS CHRISTI Henry Garrett, Mayor Armando Chapa, City Secretary Approved as to form ((/( ~ L L_, 2006 I ~l~. Joseph Ha ey Assistant City Attorney For City Attorney TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the attached ordinance, an emergency exists requiring suspension of that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings. Therefore, IIwe request that you suspend said Charter rule and finally pass this ordinance on the date of its introduction, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor, City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney Jerry Garcia John E Marez Bill Kelly Rex A Kinnison Melody Cooper Jesse Noyola Mark Scott 7 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 5/30/06 AGENDA ITEM: Ordinance appropriating $14,505 from the sale of seized vehicles in the No. 1061-821005 for purchase of equipment and training of officers and declaring an emergency. ISSUE: Chapter 59 of the Code of Criminal Procedure, which is entitled Forfeiture of Contraband, allows our department to seek forfeiture of certain property used in the commission of a felony. BACKGROUND INFORMATION: Evading police in a vehicle is a felony; therefore their vehicles become subject to asset forfeiture. The funds from sale of forfeited property must be appropriated and used for law enforcement purposes. The Juvenile Enforcement Team frequently seizes vehicles used in the commission of a felony and the proposed appropriation of funds will be used for equipment and training of these officers. REQUIRED COUNCIL ACTION: Appropriation of funds. CONCLUSION AND RECOMMENDATION: Staff recommends appropriation of funds. t&~ Acting Chief of Police Attachments: ORDINANCE APPROPRIATING $14,505 FROM THE SALE OF SEIZED VEHICLES IN THE NO. 1061-821005 FUND FOR THE PURCHASE OF EQUIPMENT AND TRAINING OF POLICE OFFICERS; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That $14,505 from the sale of seized vehicles is appropriated in the No. 1061-821005 Fund for the purchase of equipment and training of police officers. SECTION 2. That upon written request of the Mayor or five Council Members, the City Council (1) finds and declares an emergency due to the need for immediate action for the efficient and effective administration of City affairs; and, (2) suspends that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings, so that this ordinance is passed and takes effect as an emergency measure upon its first reading on this the 30th of May, 2006 ATIEST: THE CITY OF CORPUS CHRISTI Armando Chapa, City Secretary Henry Garrett, Mayor Approved as to form (41 a J L/ ( ,2006 /) / 0J[ (t--,- Joseph~arney 0 Assista~t City Attorney For City Attorney TO THE MEMBERS OF THE CITY COUNCil Corpus Christi, Texas For the reasons set forth in the emergency clause of the attached ordinance, an emergency exists requiring suspension of that Charter rule which requires an ordinance to be considered and voted upon at two regular meetings. Therefore, l!we request that you suspend said Charter rule and finally pass this ordinance on the date of its introduction, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor, City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney Jerry Garcia John E. Marez Bill Kelly Rex A Kinnison Melody Cooper Jesse Noyola Mark Scott 8 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: 5/30/06 AGENDA ITEM: A. Resolution authorizing the City Manager, or designee, to accept a renewal Weed & Seed grant in the amount of $225,000 in the No. 1067 Parks and Recreation Grants Fund for Site II West for the continued support of the Weed & Seed Program from the U.S. Department of Justice (DOJ) B. Ordinance appropriating $225,000 grant from the United States Department of Justice for Site II West for the continued support of the Weed and Seed Program FY 05/06 in the No. 1067 Parks and Recreation Grants Fund. ISSUE: The Weed & Seed Program federal grant must be renewed annually to continue its current strategy. This Weed & Seed support grant in the amount of $225,000 for Site II West will be used for the continued support of the Weed & Seed Program from the U.S. Department of Justice (DOJ). It will be dispensed per guidance from the DOJ, $112,500 for CCPD weeding efforts and $112,500 for seeding efforts. REctUlRED COUNCIL ACTION: City Council action is required to accept a renewal grant award for Site" West from the U.S. Department of Justice for the continuation of the Weed & Seed Program. The grant period is from 1 0/01/2005 to 09130/2006. PREVIOUS COUNCIL ACTION: For the past nine years, council has granted authorization to accept and appropriate the Department of Justice funds for the Weed and Seed Program. COIICLUSION AND RECOMMENDATION: Stal recommends approval of the resolution and ordinance. Attachment: Background Infonnation BACKGROUND INFORMATION Administration of the Weed and Seed Program was assigned to the Park and Recreation Department on October 26,1999. The Executive Office for Weed & Seed directed The City of Corpus Christi to insure 50% of our budget went to the law Enforcement side of the program. OUf Site I North Target area has now been terminated after 10 years of service to the City of Corpus Christi and will not receive future funding. We will still receive funds for our Site II West area. Page 1 of 2 RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO ACCEPT A RENEWAL WEED & SEED GRANT IN THE AMOUNT OF $225,000 IN THE NO. 1067 PARKS AND RECREATION GRANTS FUND FOR SITE" WEST FOR THE CONTINUED SUPPORT OF THE WEED & SEED PROGRAM FROM THE U.S. DEPARTMENT OF JUSTICE (DOJ). BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TeXAS: SECTION 1. The City Manager, or designee, IS authorized to accept a renewal Weed & Seed grant from the U.S. Department of Justice (DOJ) in the amount of $225,000 in the No. 1067 Parks and Recreation Grants Fund for Site II West for the continued support of the Weed & Seed Program ATTEST CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED: 24 May 2006 oyle . ......urtis Chief, AdministratIve Law Section Senior Assistant City Attorney For City Attorney H\LEG.DIR\JeannleIDoyleIResoILllons'VVeedSee,j ,Acer' Gran! Res ')( Page 2 of 2 Corpus Chnsti Texas _ _____ day of_ __ . __ ____. 2006 The above resolution was passed by the following vote: Henry Garrett ___'___ ______ Brent Chesney _._____., '_ Melody Cooper ___u_______ Jerry Garcia -____u__ William Kelly _._. __ ,_ Rex A Kinnison John E Marez Jesse Noyola Mark Scott H \1. EC,.DIRiec;nnie\Doyle\Rpsc .i!lonsWVep.dSee,j ."'icer ':;rant R,"s Page 1 of 2 ORDINANCE APPROPRIA TING A $225,000.00 GRANT FROM THE UNITED STATES DEPARTMENT OF JUSTICE FOR SITE II WEST FOR THE CONTINUED SUPPORT OF THE WEED & SEED PROGRAM FY 05/06 IN THE NO. 1067 PARKS AND RECREATION GRANTS FUND; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That a $225,00000 grant from the United States Department of Justice for Site II West is appropriated for the continued support of the Weed & Seed program FY 05/06 In the No 1067 Parks and Recreation grants fund SECTION 2. That upon written request of the Mayor or five Council members, copy attached. the City Council (1) finds and declares an emergency due to the need for ImmedIate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the __day of ,2006. ATTEST' THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor ;' L--- oyle 0 Curtis Chief. Administrative Law Section Senior Assistant City A.ttorney For City Attornev H ILEG DIR\Je3""'e\Doyle\Ordlna"~eS\WeedSee,j A.c< lOot ('ani GO' Page 2 of 2 Corpus Christi Texas ____ day of ____ 2006. TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists reqUlnng suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings. Ilwe, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfu Ily Respectfully, Henry Garrett, Mayor The City of Corpus Christi Council Members The above ordinance was passed bV the follOWing vote Henry Garrett Brent Chesney Melody Cooper Jerry Garcia William K.elly Rex A Kinnison John E Marez Jesse Noyola Mark Scott H L U;-DiR JeaccnleIDovle\(;.j",ances-WeedSeed ~ (cer. Grant 9 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: May 30, 2006 AGENDA ITEM: Resolution authorizing City Manager or designee to submit a grant application to serve as Fiscal Agent for FY 2006-2007 Texas Department of Family and Protective Services (DFPS) 78415 Community Youth Development (CYD) Program, with $500,000 DFPS funding ISSUE: DFPS anticipates continued funding for the CYD Program in various cities throughout the state. The City of Corpus Christi will apply for an eleventh year of funding in the amount of $500,000 for Fiscal Year 2006-2007 to be used for programs in the 78415 ZIP Code area. The City serves as the Fiscal Agent and not the Grant Administrator as In other program areas. The 78415 CYD Steering Committee has utilized an objective consensus-scoring tool for all proposals submitted. Their recommendation to the City Council is based on many hours of review and consideration. Any changes to the Steering Committee's recommendation by the Fiscal Agent will cancel any contract with DFPS for 78415 CYD Program funds for Fiscal Year 2006-2007, and the 78415 ZIP Code area will not receive any funding. In order to be considered for funding in Fiscal Year 2006-2007, renewal packet must be delivered to DFPS by Thursday, June 15, 2006. In May 2006, DFPS informed all CYD contractors (including the City of Corpus Christi) of the anticipated funding level ($500,000) for Fiscal Year 2006-2007. In preparation, the City, as current Fiscal Agent, called for proposals from the community. Public notice of this was advertised in the Corpus Christi Caller Times newspaper on February 25 and March 4, 2006 and all current subcontractors were informed. The 78415 CYD Steering Committee is currently evaluating the submitted proposals for submission to DFPS. REQUIRED COUNCIL ACTION: Authorization to submit an application to serve as the Fiscal Agent for DFPS FY 2006-2007 CYD Program in the amount of $500,000. PREVIOUS COUNCIL ACTION: On March 21,2006, City Council approved funding for Contract Period March 1. 2006 through August 31, 2006, 78415 CYD Program. CONCLUSION AND RECOMMENDATION: Staff recommends approval or resolution. vlik, Director nd Recreation Department Attachments: Background Information BACKGROUND INFORMATION On May 27, 1997, the City Council approved a transfer agreement with the Workforce Development Corporation pertaining to the CYD Contract with DFPS for the 78415 CYD Program, and executed a contract with TDPRS. The City Council also passed a resolution (#022938) establishing the CYD Steering Committee. Since then, the City has served as the Fiscal Agent for the program and entered into subcontracts with many community agencies for CYD service In 1995, DFPS developed a program to fund local grass roots efforts in the highest juvenile crime areas of the state by ZIP Code. The program sought to create activities that were not currently available within the local 78415 ZIP Code area. These activities were made available to youth ages 5-17. Eligible activities must fall within the following categories: mentoring, activities, employment, education, and/or youth leadership. In order to meet DFPS guidelines, a mentoring and youth leadership component must be part of the overall 78415 CYD Program's Plan of Operation. Since its Inception, the CYD Program has served the 78415 zip code area through a number of service providers. These would include Boys & Girls Club, Communities In Schools, Corpus Christi Housing Authority, Corpus Christi Independent School District, Corpus Christi Public Library, Paisano Girl Scout Council, Parks & Recreation Department, Volunteer Center of the Coastal Bend. Youth Odyssey, YMCA, and YWCA. Page 1 of 2 RESOLUTION AUTHORIZING CITY MANAGER OR DESIGNEE TO SUBMIT A GRANT APPLICATION TO SERVE AS FISCAL AGENT FOR FY 2006.2007 TEXAS DEPARTMENT OF FAMILY AND PROTECTIVE SERVICES (DFPS) 78415 COMMUNITY YOUTH DEVELOPMENT (CYD) PROGRAM. WITH $500,000 DFPS FUNDING. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Manager. or designee, is authorized to submit a grant application to serve as Fiscal Agent for FY 2006-2007 Texas Department of Family and Protective Services (DFPS) 78415 Community Youth Development (CYD) Program, with $500,000 DFPS funding. SECTION 2. The City Manager, or designee, may accept, reject, agree to alter the terms and conditions of. or terminate the grant. if awarded to the City. ATTEST: CITY OF CORPUS CHRISTI '------ ~_._.._._- .,---- Armando Chapa City Secretary Henry Garrett Mayor APPROVED 26 May 2006 ~~ ---- Chief, Administrative Law Section Senior Assistant City Attorney For City Attorney C:\(Dovle 03.06\ORD2003.06\Resoiut' ons\06 05264DC CYDFiscl.Agent Appl Res doc Page 2 of 2 Corpus Christl. Texas ~_._ day of__ ~_ _______ ,2006 The above resolution was passed by the following vote' Henry Garrett. Brent Chesney Melody Cooper Jerry Garcia William Kelly Rex A. Kinnisor John E Marez Jesse Noyola Mark Scott C:\(Doyie 030f'ORD2003.06\Rese1utlons\06 052f34DC CYC)f",scl Agent ,~ppl Re'. due 10 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: Mav 30. 2006 AGENDA ITEM: Ordinance transferring $3,000.00 from the no. 1020 GENERAL FUND ACCOUNT no. 202965-1020 TO ACCOUNT NO. 530000-1020-13700; and appropriating the $3,000.00 to pay expenses for the Bay Jammin' Concert series; and declaring an emergency. ISSUE: This Agenda Item is needed to Fund the costs of entertainment, sound and staging for the cultural series, Bay Jammin' Concert Series held every summer at Cole Park. This event series is sponsored by the City Parks and Recreation Department, Cultural Center with support from other local sponsors, as yet to be determined. RBQUIRED COUNCIL ACTION: $3,000.00 is requested to be appropriated for the fiscal year 2006 to fund the Bay Jammin' Series, Summer 2006. PREVIOUS COUNCIL ACTION: None FUNDING: Funds in this account were originally received from grant moneys and vendor fees for the purpose of funding, when needed, special event programs for the City of Corpus Christi, Parks and Recreation Department. CONCLUSION AND RECOMMENDATION: Staff recommends that the City Council approve this as presented. Sally Gav. , Director Parks an ecreation Department Attechmenta: Background Information BACKGROUND INFORMATION The Bay Jammin' Concert Series has been in existence for over 40 years. They have been so successfully that in recent years we have increased the series and have induded cinema on Friday evenings. The cost of good talent continues to increase and we have been unable to attract good groups to Corpus Christi because we have not been able to afford them. With this increase, which was obtained through grants and sponsors for enhancing our special events, we anticipate greater talent and a great 2006 summer. Page 1 of 2 ORDINANCE TRANSFERRING $3,000.00 FROM THE NO. 1020 GENERAL FUND ACCOUNT NO. 202965-1020 TO ACCOUNT NO. 530000-1020-13700; AND APPROPRIATING THE $3,000.00 TO PAY EXPENSES FOR THE BA Y JAMMIN' CONCERT SERIES; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. $3.000 00 from the NO.1 020 General Fund Account no. 202965-1020 is transferred to account no. 530000-1020-13700 and $3,000.00 is appropriated to pay expenses for Bay Jammln' Concert series. SECTION 2. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for Immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charger rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the __ day of May, 2006. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor oyle 0 Curtis Chief, Administrative Law Section Senior Assistant City Attorney For City attorney 'i \LEG-DIR\Jeannle\Doyle\Ordlnancec;\BayJamnnlfl doc Page 2 of 2 Corpus Christi. Texas . Day of ,2006 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully Respectfully, Henry Garrett Mayor Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney John E Marez Melody Cooper Jerry Garcia Bill Kellv Rex A Kinnison Jesse Noyola Mark Scott H\lEG-DIP\Jeann.e\D'lyle Ord'nan, es\BayJarr,m!r! jcc 11 CITY COUNCIL AGENDA MEMORANDUM May 30, 2006 AGENDA ITEM: Motion to authorize the City Manager or his designee to approve a Letter of Agreement between the City of Corpus Christi and the BeautifY Corpus Christi Association i "BCCA") ISSUE: This Letter of Agreement formalizes a joint mission between the City and BCCA to coordinate efforts including, but not limited to neighborhood clean-ups, recycling, community events, promotion of City programs. and public information and education. BACKGROUND: Since February 15. 2002, BCCA has partnered with the City and has been funded by the City to oversee a coordinated effort between the City and BCCA to work hand in hand on mutually beneficial environmental programs throughout the city. CCSWS will provide $25,000 from its operating budget to work closely with the BCCA Executive Director to create and coordinate programs that wi 11 benefit both entities. nris effort is delineated in the Scope ofW ork and Budget that is part of the Letter of Agreement. The BCCA will designate the Directors of Neighborhood Services, Streets & So lid Waste Services and Parks and Recreations or their designee as an Ex-Officio (voting) member of its Board of Directors. The Director of Streets & Solid Waste Services is the primary point of contact for the management of this Letter of Agreement. The term of the agreement is from February 15,2006 through February 14.2007. /1 (i ~ -r)~P2- J ~Kaplan irector Solid Waste Services ADDITIONAL SUPPORT MA TERlAL Bacqroood Information ContAlct Summary Ordinance/Resolution Map(s) ~ n n LETTER OF AGREEMENT BETWEEN CITY OF CORPUS CHRISTI AND THE BEAUTIFY CORPUS CHRISTI ASSOCIATION This letter of agreement between the City of Corpus Christi ("City") and the Beautify Corpus Christi Association ("BCCAn) formalizes our joint mission to lead efforts to achieve and maintain a cleaner and more beautiful environment for the enjoyment of residents and visitors to the City. The purpose of this letter of agreement is to solidify our coordinated efforts in the areas of: · Sustaining progress achieved through the City's Neighborhood Initiative Programs' (NIP). by taking a proactive role in helping to maintain a line of communication with the people in the targeted areas. · Increasing communication throughout the communities regarding anti-litter and beautification activities. · Encouraging neighborhood cleanup campaigns. · Improving attitudes about recycling and increase participation in the recycling program. · Providing leadership during community events for maintaining a sustainable environment. · Distribution of information and educational materials regarding environmental subject matters. · Promotion of City-wide environmental programs. This letter of agreement is effective from February 15, 2006 through February 14, 2007. BCCA shall designate the following City officials as Ex-Officio (voting) members of its Board of Directors: Director of Neighborhood Services, Director of Streets and Solid Waste Services, Director of Parks and Recreation, or their designee. The City shall provide a grant of $25,000 to BCCA in return for BCCA's efforts to implement the scope of work, described in Attachment A. The budget for this letter of agreement is established in Attachment B. BCCA2006AGREEMENTrjr 1 CONTACT INFORMATION: City of Corpus Christi Streets and Solid Waste Services Attn: Jeffrey D. Kaplan, Director 2525 Hygeia St. Corpus Christi, TX 78415 P.O. Box 9277 Corpus Christi, Texas 78469-9277 (361) 826-1970 Beautify Corpus Christi Association Attn: Ms. Daiquiri Richard 545 N. Upper Broadway, Suite 3DDE Corpus Christi, Texas 78476 (361) 855-2888 Beautify Corpus Christi Association ~ "- ~;.....; (Q~LJl.,vJ "Daiq (Richard BCCA Executive Director City of Corpus Christi George K. Noe City Manager Approved as Legal Form' ~--7 R. Y Reining / .. First Assistant City Attorney For City Attorney BCCA2006AGREEMENT* 2 Attachment A SCOPE OF WORK · Annual Work Plan Within sixty (60) days of the effective date, the BCCA Executive Director will meet with City staff from Parks and Recreation, Neighborhood Services, and Streets and Solid Waste Services to develop an annual work plan that defines expectations by parties included in this agreement. THE FOLLOWING ITEMS WILL BE COORDINATED WITH THE CITY'S EX- OFFICIO BOARD MEMBERS AND OTHER CITY STAFF AS DIRECTED: · Neighborhood Initiative Program BCCA shall assist the City by taking a proactive role in sustaining the efforts of Neighborhood Initiative Program (NIP) and Neighborhood Pride Program (NPP) activities within designated communities. BCCA shall work with applicable departments and their programs, and speak with the residents to promote environmental sustainability including anti-litter and clean up campaigns, tree plantings and basic information on City codes that may affect the residents. i BCCA shall assisfwith researching and acquiring grants that may be available to the City or the neighborhoods to improve beautification and anti-litter efforts. BCCA shall continue to assist the neighborhoods with planting trees and other vegetation as a part of the beautification outreach. The BCCA Executive Director shall conduct a follow-up evaluation of tree plantings to ensure proper care of the trees. The BCCA Executive Director shall attend City scheduled NPP meetings to assist the City and the residents on beautification efforts and assist with neighborhood meeting facilitation as required. · Community Communication on Anti-Litter and Beautification Activities The BCCA Executive Director shall actively participate in anti-litter and city beautification efforts and communicate with current and future leaders of organizations, businesses, and citizens about the City's anti-litter and beautification activities at both formal and informal public events. BCCA shall continue to partner in significant landscaping projects in Corpus Christi. BCCA shall work with TXDOT to ensure proper maintenance and adequate and appropriate plant material along our community's rig ht-ot-wa y. BCCA shall submit an application to Keep Texas Beautitul for the Governor's Community Achievement Award. A copy ot the application must be submitted to the City's Streets and Solid Waste Services Department for recordkeeping. BCCA2006AGREEMENTrjr A-1 · Neighborhood Clean Up Campaigns BCCA shall assist in scheduling, promoting, coordinating, and supervising at least four (4) community-wide clean-up events and two (2) Adopt-A-Beach clean- up events. BCCA shall coordinate the dates with City staff to ensure that adequate resources are available to support the events. BCCA shall take a lead role in coordinating the recognition of participating organizations and individuals. Utilizing additional grants, donations, funds, supplies, and in-kind assistance from other entities, BCCA shall provide clean up kits with trash bags and gloves to citizens involved in clean up events. BCCA shall communicate the availability of the clean up kits as well as other resources to the community. · Drafting a Tree Ordinance for the City of Corpus Christi BCCA will assist the Urban Forester contracted by City Parks and Recreation to develop a Tree Ordinance. · Recycling As part of the anti-litter and beautification efforts, the BCCA Executive Director shall participate in recycling events, and educate the public about the value of recycling. · Community Events BCCA shall provide clean up assistance at community events, such as the City's Fourth of July Parades and Buccaneer Parades, by distributing trash bags to participants in order to educate the public about containerization and proper waste disposal. BCCA shall continue to take a leadership role speaking to civic groups, clubs, students at area schools, and participants at area fairs and other venues to promote environmental excellence and sustainability throughout the community in efforts to improve the City's aesthetic image. · Promotion of City of Corpus Christi's City-wide Environmental Programs BCCA shall help educate citizens about the City's various environmental programs at the direction of the respective City Department's (i.e., Water, Storm Water, Solid Waste Services, Household Hazardous Waste Projects, Wastewater, and Code Enforcement) in an effort to achieve a higher level of environmental excellence for the community. BCCA2006AGREEMENTrjr A-2 · Public Information and Education BCCA will coordinate a teacher training session presenting the "Keep America Beautiful" and "Waste in Place" curriculum for local teachers and school administrators. · Litter Critter Program and Household Hazardous Waste BCCA shall continue to communicate to area groups and associations about all Solid Waste Services that are currently offered or modified during the term of this agreement These City programs are offered in an effort to increase participation, and thereby reduce the amount of debrIS that is disposed of illegally THE FOllOWING REQUIREMENTS Will BE PRESENTED TO THE CITY'S EX-OFFICIO BOARD MEMBERS OR THEIR DESIGNEES: · Reporting The BCCA Executive Director shall provide quarterly executive summary reports. The first report must be submitted by May 31, 2006. The reports should summarize the activities included in the terms of the contract and the progress made. Any deviations from the scope of work must be included. The quarterly reports should include copies of all monthly financial statements approved by the BCCA Board of Directors during the period. The subsequent reports are due August 31, 2006. November 30, 2006 and February 28, 2007. The final report must summarize activities carried out per the contract, all accomplishments, and any deviations. · Review of financial records Upon the City's request, BCCA agrees to make any and all financial records available for review. · Contract manaaement Management and primary contact for compliance with this agreement shall be the Director of Streets and Solid Waste Services or their designee. BCCA2006AGREEMENT~r A-3 Attachment B Beautify Corpus Christi Association 545 N. Upper Broadway, Suite 700E Corpus Christi, Texas 78476 Phone (361) 855-2888 Fax (361) 289-2060 PROPOSED BUDGET FOR 2006 Monthly ADMINISTRATIVE EXPENSES BudQet Health Insurance I nternetlWebsite/Computer Meals Mileage Miscellaneous Office Supplies Payroll for Executive Director Postage & Delivery Rent Taxes - Payroll Telephone T-Mobile Birch Telecom Travel 157.00 31.62 41.67 120.00 41.67 90.00 3333.33 30.00 1,000.00 255.00 58.33 82.00 62.50 PROPOSED PROJECTS TOTAL EXPENSES PROJECTED PROJECTED INCOME Grant - City of Corpus Christi Grant - Texas Forest Service La Noche Bonita Event Membership Income Rent (In-Kind Donation) $ 5,303.12 TOTAL INCOME PROJECTED BCCA2006AGREEMENTrjr Annual BudQet $ 1,884.00 379.40 500.00 1,440.00 500.00 1,080.00 40,000.00 360.00 12,000.00 3,060.00 700.00 984.00 750.00 $ 63,637.44 25,000.00 10,000.00 15,000.00 $ 1,000.00 12,000.00 $63,000.00 A-4 12 AGENDA MEMORANDUM City Council Action Date: May 30. 2006 AGENDA ITEM: A motion authorizing the City Manager or his designee to execute a contract with the Department of State Health Services for the administration of duties performed by the Vital Statistics Division of the Health Department and for the payment of record fees due to the State. ISSUE: This contract formalizes an agreement between the Department of State Health Services and the City of Corpus Christi to provide the City with access to the State's database of vital records. The City's Office of Vital Statistics will be able to print copies of vital records as certificates for consumers and will pay $1.83 to the State for each record printed. The City, in turn, collects a fee from the consumer for the issued certificate. REQUIRED COUNCIL ACTION: Approval of the contract. PREVIOUS COUNCIL ACTION: None FUNDING: There is no match funding required. CONCLUSION AND RECOMMENDATION: Recommend City Council to authorize the contract , BACKGROUND INFORMATION The Office of Vital Statistics office is administered by the Public Health District. In 2005, 16,225 birth certificates and 20,274 death certificates were issued by this office. In order to issue these certificates there must be access to the State's database of vital statistics Information. This contract formalizes an agreement to provide this access. The fee of $1.83 is unchanged from that which has been charged previously by the State. In addition to the fees paid to the State, the City agrees to maintain documentation of certificates generated and to purchase supplies and equipment necessary to print the certificates. The cost of printing the certificates and paying the $1.83 fee to the state is offset by the fees charged to the consumer. The current fee for a birth certificate is $22.00 and a death certificates is $20.00 These fees are set by the State. ... 13 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: May 30. 2006 AGENDA ITEM: Motion authorizing the City Manager or his designee to execute a pro fessional services contract with GISPlanning, Inc. of San Francisco, California for an amount not to exceed $34,600.00 for a license to the City for the online use of GIS Planning's ZoomProspector software as hosted by GIS Planning, Inc. for use as Client's Economic Development site-selection analysis GIS web site. ISSUE: The MIS Department has investigated ways to promote Economic Development utilizing the City Geographic Information System (GIS) and its' data. GISPlanning has been found to be the best at providing such software and services. The data will come from multiple sources such as the city's own GIS data, a business directory which GISPlanning will update, and from local real estate professionals who will be able to add listings to the site. This new Economic Development GIS website will allow companies worldwide to search Corpus Christi for sites and/or buildings to match their corporate needs. Other cities who utilize this technology have reported positive results, with companies locating facilities in their communities and bringing jobs there. Annual mamtenance and support fees of$28,600 will be required starting in one year. REQUIRED COUNCIL ACTION: City Council approval is required for expenditures over $25,000. PREVIOUS COUNCIL ACTION: None. FUNDING: The total cost of$34,600.00 will be funded from the MIS Department Fiscal Year 2005- 2006 budget. CONCLUSION AND RECOMMENDATION: Staff recommends approval of the motion as presented . e>. P. ca,:e. ~c:..u:' Ogilvie Gericke Director of MIS Application Senrices Agreement Thl' Applicatlun SerVice, Agreemenr ("Agreement") dTective as I)f Ma),_, 2006 ("Effective Date"), is entered into by and between (, is Planning, llh: I'G I '-; Planning") and the City of Corpus Christi ("Client"). This Agreement describes the terms and londition' under which (i1~ Phnning wi I license to Client the online use of GIS Planning's ZoomProspector software as hpsted by GIS PlannIng for liSt dS bent's C((l!loml\ development site-selection analysis GIS web site, In consideration of the nl!11 uai pnHllhl~ ,illd U1ll1i the term, and umditlOTIS belo\-l the parties agree as follows: LicensclScope ofSer~ict:~, (,\S Plannlllg will provide tll<' L\pplication Services with respe\: to the I.lom Prospector s,) h ware ("Application S<.:n kes' ) a, describec in Sc hedule A altached heret" and 111 accordance vith this \greement. In addition, GIS Planning shall provide professional services to integrate ZoomProspector (as provided and lic<:,nsed as part of the Services) and the Servic<:,s ,'lith ('bent's data (the "Integration Services") rhe Application Services and Integration Services are hereafter cullectivel) reterred to as 'Services," Subject to the term, of this Agreement. and upon payment in full, GIS Planning grants to Client a rersonaL nontransferable nonsublicensable. nonexclusive limited bcense to use the ZoomProspect<>r suftware functionality ani) a~ part of the Sen Ices. and use any ,oftware created, made, 0] pro\ ided with the IntegratIOn Serv,ces only as pan of the Ser'. Ices, and unh 1'01 Cllent~ ,wn Lise and not un behalf 01 tlmd parties, in accordance \\ nh an\ documentatiun provided b\ GIS Plannmg. Client agrees that It shall not dlstnbute, rent. sei I. lease, license, assign or otherwhc transfe] all \I] dny part of the Service', including but n\>t IlInited to dn\ ,oft ware or ay,oc;ated documentation to <my hir, i part~ GIS Planning will retam the \u]e and exclusive nght 1.0 control and direct the manner or mean, b\ which the Services are perJormed, and ma~ employ ur subcpntract others with respect to such Services An~ ehallge~ or additions tu the Services required by Cllem must be agreL'd upon in writing :.igned b) both parties. in the event of changes or additlOn> to the Sen I~es, Cliell' shall acccpl 'uen modifications or alkrations 1<- the fees, costs, tlml' "I performance and nMnner 01 perhmnance, iI> GIS PlanninE', Shetll prompth iCientih 10 Client a> r,.~su]ting from 'he accepted ch;mge .2 Client' sJ)_uties~d Rc:;mmsibllities 2 Data and Information Client shall makL' aniiable in a timely manner at no charge 10 GIS Planning all technical data. programs, files, documentation. sample output. 01 other information and resources reasonably required h GIS Plannmg for the performance uf the Services mc luding but not limited to elsel names firewall configuration, and lP addresses, and the Busines, [hta lescribed 111 I\:hibit A. Paragraph 6. Clicnt will be responSible for, and assumes the risk of any problems resulting from. the content. clCcuracy. completeness and consistency 01 all such data matenals and information supplIed by Chcnt Client shall ~ooperate with GIS Planning and provide such assistance as GIS Planning may reasonabh request !!1 connection with CilS Planning's efforts to obtain all consents, approvals and authorizations of and cooperation from third partie; which may be necessary or re'-lldred in order tu effeduate thl:' Sl'rvrce~ cuntemplated by thIS A.greemen' !. Iiem shall !'ed: an (Psts iincludml! those above and beyond GIS Planning's quoted costs) and including added time resulting from Client's failure to meet its "hi igallons Fees and Payment , Fees. The fees for a specific project shall be specified in Exhibit A Client shall pay GIS Planning fifty percent (50%) of the initial project fee upon entering into this Agreement and before commencement of Services by GIS Planning, and the remaining balance no later than thirty (30) days from the completion of the data integration and start of application services. Additional fees may be incurred on a time and materials basis for consulting services in accordance with the rates set forth on the applicable Statement of Work. (lIS Planning's fees are based on information provided by Client. Client accepts full responsibility for additional fees incurred based on the inaccuracy of such information. The annual application services renewal fee, if any, as set forth in Exhibit A shall be paid thirty (30) days prior to the end of the then current term The renewal fee may be changed after the first renewal penod. ~ "\ Expenses. Client shaH reimburse GIS Planning for all reasonable out-of-pocket expenses actually incurred by GIS Planning in performance of the Integration Services. 33 Taxes, If Client is not a tax-exempt entity, Client shall pa\ or reimburse any and all federal, state, dominion, provincial or local sales, use, personal property, excise, or other taxes, fees or duties arising from or related to this c\greement (othel than taxes based on GIS Planning's net 11IC,lmel ; --I L<:t!e Payment GIS Planning may cease performance ut Sentces at anv time if payment is not timely made. In addition, after Client has accepted the integration of their data with ZoomProspector, Client shall pay GIS Planning one and one-half percent ( 1.5%) interest per month on the outstanding balance of any fees or expenses not paid within thirty (30) day s of the due date provided GIS Planning is not in breach of tlm Agreement ~ Ownership. As between the parties, title to and ownership of the Zoom Prospector software and Services, methods, technology, and all proprietary rights therein, any accompanying printed materials and all copies and portions thereof including but not limited to source and object code, specifications, designs, processes, techniques, concepts, Improvements. discoveries, and inventions made or developed Jll connection with the Services (collectively "Work Product") shall be' and at all times remain with GIS Planning. Nothing in this Aareement shall grant to Client any ownership or title to the Work Product, nor limit GIS Planning's ability to use Work Product for other projects. Work Product does not include content provided bv Client. such as information about physical properties or brokers. i-'onfj<l~1tli!!1nformatlon Each party ("ReceivlIlg Part}") agree:, hi keep ~onfjdential and not disclose or use except in perfonnance of its ,bligations under thl' Agreement .:onfidentiai or proprietary iflfc)ffilation related tu the "ther p,tIty's ("Di'icJo;,ing Party") 'edmolog) or buslIles,. lIlcludlOg. but not limited to. mfc)m1ation relatlOg to product'i or technology of U1e Disclosing Party or the :Jroperties, composition, structure. use or process 109 thereof. :umputer program" oode, algorithms, "hematics, data. know-how, pmcesses, ideas, I!1ventions, and other technical, business. fmancial, lIId product development plans, forecasts. strategies and ntc)rmation (all of the foregoing, "'onJidentiallnf\)rmation") Each p,my shall use reasonable precdutil'lIs to protect the \)ther's ,mfidential Infunnation. {onfidentJaI lnformatioll shall not :nclude infonnathl!1 the (a) IS HI 01 enters the puhlic domain 'nc!uding m reasunably 3\ ailable public or govemmern databases lhrough no improper action or lOaction fly the Receiving Party; (b) \as rightfully to the Receiving PaJ1y's possession or known by it prlUr to receIpt lrum the Dlsclc'sing Part). (c was rightfully disclosed to ilie Receiving Party b\ another person without restriction; or id) was Itldependently developed bv the Receiving I'art\ by persons without access to such informatlon and without Llse of any Confidentiallnforn1ation of the Disclosmg Part). Each paJ1.' may disclose Confidential lnfornlation that is required to be dl-;closed by j (uuft or uther adjudicative body provided that reasonable measures are taken to minimize disclosure and guard agaltlst further disclosure, and also proVided that the party gives the tlther party prior written notlce,)f the proposed disclosure to allow the other party to seek protection for the : 'onfidential [nt)nnation. , WarraIlJ.1'J2isclaim~LimitationofLiabi1ity GIS Planning will use reasonable commercial efforts tu provide the Services in a prufcssional and workmanlike maImer. (,[S PLANNINej MAKES, ~\ND CLIENl RECEIVES, NO WARRANTIES OF AN'{ KIND, FXPRESS, ThfPl.IED OR 51 'TUTORY, AR[SING 11\ ANY \VA'\ OUT Of. RELATED H OR UNDER THIS AUREEMENl OR TIlE PROVlSION OF MA TERJALS OR SERVICES rrIEREUNDER. AND GIS PLANNING SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY ()F !\1ERCHANTABILITY OR FIlNESS FOR A PARI1CULAR PURPOSE. In addition, CLIEN'! AGREES THAT GIS PLANNING'S LlASnJTY UNDER lliIS AGREEMENT IS LIMITED TOrHE AMOUNT PAID FOR SERVICES. IN NO EVENT SHALL GIS PLANNING f IA VE ANY L1ABlLITI' FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES INCLUDING, WITIIOUT LIMITA TION, DAMAGES FOR LOST PROFITS, LOSS OF DA TA OR COSTS OF PROCUREl\1ENT OF SUBSTITUTE GOODS OR SERVICES, ARISING IN ANY WAY OUT OIT1-IIS :\GREEMENTUNDER ANY CAI 'SE ilf AC1lO'\. renn and lennination. This Agreement will take effect on the Effective Date and will remain In effect, unless earlier terminated in accordance herein. fill ont year At the end of the first one-year term, this Agreement will be renewed for an additional 3 Years upon the mutual agreement of the parties. GIS Planning shall notifY Client in writing 30 days before the renewal period of any budget changes which results in an increase to the budget for the renewal periods. Said costs include, but are not limited to: demographic data costs, business and workforce data C{)sts, consumer expenditure costs, business competition/synergy database costs, and Class A quality Data facilitylIntemet bandwidth fees Client may, at Its discretion, allow the Agreement to become tern1inated as a result of this notification or incur, at Client's expense, additional applicable costs directly associated with the expenses listed aoove. Notwithstanding the foregoing, GIS Planning may immediately terminate this Agreement if GIS PlaJming determines that Client has failed to comply with any of the tem1S and C{)nditions of this Agreement, or may terminate for convenience provided that GIS Planning offers Client the opportunity to license the ZoomProspector software directly at a commercially reasonable price. This Agreement may be tenninated by either party if the other party (i) fails to pay any amount due under this Agreement within ten (l0) days after written notice of such nonpayment, or (ii) commits a material breach of this Agreement, which breach, if capable of being cured, is not cured withm thirty (30) days of written notice oftennination. Tennination by dny means will not affect the provisions of this Agreement relating to the payment of amounts due, or the provisions of Sections 4, 5, 6, 9 and 10 of this Agreement, all of which will survive termination of this Agreement, regardless of the reason for termmation. Upon termination, all licenses and rights granted hereunder shall tenninate, and Client shall immediately return to GIS Planning, GIS Planning's proprietary and confidential information, including the Software, if any, and all copies and documentation of the foregoing, along with a signed, written statement certifYing that Client has returned to GIS Planning, and is no longer in possession of the foregoing items. 8. Government Use. If Client is a unit or agency of the government, or purchasing Services with government funds, the Services are provided subject to GIS Planning's standard commercial terms, set forth in this Agreement. l) Reference: Client agrees that GIS Planning may identifY Client as a customer on its brochures, websites, and other marketing materials, and describe the project and Services provided by GIS Planning to Client. Client agrees to the inclusion of the following statement in the application "Application Developed by GIS Planning" with the GIS Planning logo and a link to the GIS Planning web page. 10. General Provisions, This Agreement is not assignable or transferable by Client, and any such attempted assignment or transfer shall be void and without effect. Each party will be and act as an independent contractor and not as an agent or partner of, or joint venturer with, the other party for any purpose related to this Agreement or the transactions contemplated by this Agreement, and neither party by virtue of this Agreement will have any right, power or authority to act or create any obligation, expressed or implied, on behalf of the other party. This Agreement shall not be governed by, and shall be construed without regard to, the United Nations Convention on the International Sales of Goods. In any action to enforce this Agreement the prevailing party will be entitled to costs and attorneys' lees I he waiver by either part) of a breach of this Agreement or any right hereunder shall not constitute a waiver of any subsequent breach of this Agreement; nor shall any delay by either party to eXerCIse any right under this i\greemenr operate a, a waIve, of <1n\ such right If any pruvislOn of this Agn'ement shall b,. adJudged by any U)urt of clJmpetent JUrIsdIctIOn 'll be unentorceabie or mvahd, that proviSion shall be lImited or eliminated to the minimum extent ilecessary so 'hat this Agreement shall otherwise remam in full force and effect and enforceable This Agreement constitutes tht' entIn' a;!reernent hetween the GIS Planning, In/\. J\ \ By __ 1__ ~_ Name (print): Pablo Monzon Title ___p~si(t~t partles hereto related to the subject matter hereof, and any and all written or oral agreements are expressly cancelled. Any modifications of this Agreement must be in writing and signed by both parties hereto Pre-printed purchase order tenns and any other additional terms, and any tenns in contlict with this .\greemenL shall be void and of no effect. Client (City of Corpus Christi) By _______ Name (print) fitle S)J-L{ (o~ Approved as to form: ' ,~! .-/-( /}/{... / Lisa Agul ar Assistant City Attorney For City Attorney , -' EXHIBIT A Statement of Work 1. Application Services: fhe application serVkes shall he defined as a web-based application service that offers ZoomProspector :-oftware functionality on d hosted or outsourced basis. ZoomProspector will be hosted on servers with an Internet service provider or hosting fac:lity that (lIS Planning uses. Z,)ornProspector timcrlonallty \\ ill include the followmg features · Available Property Site Selection Query web site users will be able to search for available commercial propeny based on user-defined information such as minimum and maximum size and type of use. · Property Reports \\eb site users will be able to generate property reports for available properties. · Dynamic Demographic Analysis web site users will be able to generate user-defrned demographic analysis from any available property within the Project Geography. · License of Demographic Data from Applied Geographic Solutions - data will include demographics, consumer expenditures and business/workforce data. · Dynamic Business Reports n web site users will be able to generate user-defrned business reports from any available property within the Project Geography. · Dynamic Mapping wel site llser, will hdve the ability to zoom in/out. pan and identify information on the map · Online Management system for Real Estate Professionals to list Properties - web site users who are authorized real estate prokssionals marketing available commercial property will be able to add, delete and update mfonnation about Iheir properties thmugh a user-friendly web page or site using a login and password system · Staff Online Management System web site users who are Client staff will have access to application services, namely, use of the Zoom Prospector software on a hosted basis, that will provide them with complete access to the property data for addition, deletion and maintenance. Client staff will also use the application servlces and/or web site to give real estate professionals access to use the application services for the purpose of reviewing, adding. deleting and updating information about their properties · Application Interface the application interface will be created following a design similar to that shown as Exhibit B The application interface will include color customization and insertion of the Client logo. Several of the above features ah' described in more detail below "vailable Property Site-Selection Query 100mProspector will glve the web site user the ability to search and select available property or buildings m the Project Geography based on size and type (e.g. office, retail, industrial, vacant land, etc.) of space. As a result of this search the ZoomProspector software will compile a list of locations which match the identified characteristic, and display them to the web site user. When the web site user clicks a hyperlink !()r the property in which s/he is interested, the selected property will be shown on the map and a property report will appear with the characteristics of the space (e.g. size, address, zoning, contact information, description. etc i Property Reports After a property is found through the site selection process and the web site user selects it, ZoomProspector wilJ generate a pro pert: report that can include real estate professional-submitted graphics. Web site users will be able to select any available property in the Project Geography and be able to view a map depicting the dvaiJable property. Information in the property report can include, but is not limited to: · Commercial Property or Project Name · Picture subm Itted hy real estate professional or stafT . Address · Property fYl'e (eg oftice. industrial. retail, warehouse, vacant land, etc,) · I and Use . Total Sne SILe . (Ither Tenants · Proper!) description · Broker Propaty contad information (as a link this will show the broker name, company, address, klephone, L,\ and ,'-l11ail) . \'Ii eh f'a!!e L nks The data described in the propeI1y reports may need to be entered when a property is added to the database, Some data can be generated automatically if it is included in the Project Geography's GIS database. The Dynami{' Demo~raphic Engine ZoomProspector services will give the web site user the capability to dynamically generate demographic reports for any available property within the Project Geography, Web site users can create demographic reports based on their own user-defined distance from a property Demographic reports can include demographic Income consumer-expenditure and workforce information. The lo<.:ation-speufic demographic radius reports can include radii distances of up to 20 miles around the ;nailable propert\ fhe drive-time demographic reports can include drive-times distances of up to 30 minutes around the a\ailable propert\ The Dynamic Business Report Engine ZoomProspedor services will gIve the web site user the capability to dynamically generate business reports for any available property within the Project Geography. Web site users will be able to see the locations of businesses on the map color-coded by industry Website users will also be able to view tabular business data in the busine~s report by number of businesses by industry Online Management system for Real Estate Professionals to list Properties fhe real e,tate pn)fes.,ionals' site IS, ,j ,\eb page where real estate professionals (like brokers or property O\\ners) may add an dvailable propl?rt) delete a proper!) that has been leased or purchased, and modify mtormation tor a proper!) Tc help avoid contlicts between brokers, ZoomProspector will provide for iIldividual securit\ IOi2lns and P;lsswords so that only the real estate professional who added the property, ,md who has the appropriate logl/l and password, should be able to view or delete the property, ZoomProspector will also check for the ID of the broker before deleting information. A login and a pa,sword will als" be required !Il ordel to add or delete a proper!). A user-friendly web site or interface will be lIsed tn make adding deklin~: "r modifying a property rdatively easy for the broker. Both the Brokds login database and Property LIstmg database will be maintained on a server running the "\pplication Serv]( es 13rokers can abo add (,ne photo lhat wil! appear on the property report In addition they will be able to add up to 2 more dIgital files related to the property which can include photos or documents. The supported file I;'xtensions for the~e tVI I) additional files are *giL *Jpg. or *pdf. A file size limit will be required for each file The Staff Online Management System ZoomProspector provides a w('b-based interface for the system administrator(s), This Staff Online l\1anagement Systt'm page will allow the operator to add and delete real estate professionals who may list Noperties 1m ('!ient's ,ite, and assign them logins and passwords from any computer connected to the II internet. All logins and passwords will be stored in a secure database. Client will be able to monitor all properties through the Administration Page. "'Web sIte users" refers to end users accessmg Client's website who have the necessary and adequate hardware, software and Internet connection service~ to access and use most commercial Internet sites. 2. Service Level ellS Planning will u~l' commercially reasonable efforts tll make ZoomProspector Application Services available and online at least nmety-five percent (95%) of the time. Customer agrees and understands that routine maintenance by GIS Planning or its internet service provider or hosting facility may cause temporary downtime, and that loss of connectivity by Client to the hosted system due to reasons which are beyond GIS Planning's control, such as problems with Client's personal computers or the network between Client and GIS Planning's internet server hosting facility, may arise and that GIS Planning shall not be responsible for such loss of connectivity or any other loss of connectivity that is hey\!nd GIS Plannmg's reasonable control 3. Timeline: rhe time frame for developmg the Software shall be three months from the Effective Date of this Agreement and all Data To Be Provided By Client (Section 6) has been delivered to GIS Planning. GIS Planning will use Its management process to ensure smooth and rapid implementation. GIS Planning will work closely with Client to design and formally capture all the specifications before Software integration starts. GIS Planning will then track any modifications needed and their completion across two review cycles that lead to rhe final Software Developmg the Soft" are in three months is dependant on Client's ability to turn around information requests In a timely mannel Delays in Client feedback may delay the Timeline I'he application services will be provided after development of the Software. 4. Additional Services Except for services identified above III this Exhibit A, any additional custom functionality, data preparation, design of complementary web pages, changes to the existing interface, maintenance, new services requested, travel and time ("'Additional Services') will be charged at a consulting fee rate of $150 per hour plus expenses for calendar year 2006 Client shall make any request for Additional Services in writing and the parties shall agree to additional services III writing (including bye-mail) prior to performance of the Additional Services. The hourly rate for service is subject to change in which case client ,hall he notified and approve of change before work is performed by GIS Planning 5. Proiect Geo2raph, f'he content or the application services will cover the geographic boundaries of the City of Corpus Christi, whIch is an area with a population of no more than 350.000 people. 6. Data To Be Provided Bv Client rhe following is a list of the minimum data that needs to be provided by the Client to GIS Planning at the lIlitiation of project work GIS Data 1Il · One ( I ) Shapefile format dIgital file with all parcels to be included in the project area. The parcel database must include a c\)ITesponding address for parcels If the shapefile does not have a correspondini' address tor parcels a parcel-to-address database must be provided. · GIS layels (up to 6) to be viewed in the application such as zoning, utilities, traffic counts, and redevelopment project incentive areas. These should cover only the project area geography. · Aerial photographs for the project area (if available) · Major Streets & street centerline Shapetile · Address datahase or addres, laYer Ufparcel Shapefile does not include addresses) Hu,mes' Dna · One Ii) Shapdile of all bus messes to be mcluded m the project area. The database should include at a mmimum the business name, business typeiindustry, and address or parcel number. This database must be able to he geocoded to the GIS parcel Shapefile mentioned under GIS DATA. ( Iraphic Image, · An) graphic Images su( h a~ (J iogo, photos. or illustrations which can be used in the application mterface '\n\ data manIpulatIOn elr change., to the data are not included in this scope of work. ( liem may update data such as Shapefiks and data four (4) times per year. This data must be placed on a CD-ROM and mailed to GIS Plarming. The new tiles will be uploaded to the server. Client may use up to 10 GB of aerial Imagery and I GB of data of total storage on the server. Client understands and agrees that Data may be used in connection with regionaL state, or national GIS applications and services that are provided by GIS Planning to promote GIS Planning s clien:s' available properties. .., Fees Initial Project r__e (development and hosting for initial term): $ 33,600 :\nnudl Ren,:w:il Fee 1'0' Application Ser\lces: $ 27.600 Internet License for Database of Businesses in the City of Corpus Christi: $ 1,000 13.549 total business as ()f 5/1 7'2006 IV EXHIBIT B J v it'll, t ~" , ! I ) :_ i~ xl ... Edt ........ Fe_ TooIo Heip " Olllrl ~) !!J iJ) (~J /' SeIlrch Fove>r1b €' id . -~ "l- 11-$ --jl r. ~~~ih-~(Jj.....~ I I l!dIdlIIIIII Iimd AsI:lIIHIl .... JauI I I ~ N.... Seard1 8. e.ck 10 Ines ~Saved lites I "''''i\ I I I ..I ) ) J~ Street Address OocumemslPhotos Click here to lr'iew "ver 00110 WRA.NDOL MILL RD OiSIMay on rHap: DZamng DEnterP"s. Zone [J 2000 BIGck Gr.)ups DTralllc Counts DScriOO. D p 3f1<s DStream-, ~'~_.__..,..--.._l", A_ yes rype Office MimmumllM_ (Sf) 200 SqFl lAa)()murn Con~9uous (Sf) 8.562 Sqfl for lease yes Lelllnd [J S.tee.d Pl"OfMrf} - ,.... Lease Type Minimum lease ($/SqFU Full SelVToo $1200 1r~ 14 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: May 30, 2006 AGENDA ITEM: Motion authorizing the City Manager or his designee, to execute Amendment NO.1 to the engineering services contract with Freese and Nichols, Inc., of Fort Worth, Texas in an amount not to exceed $74,500 for the Wholesale Raw Water SCADA Improvements 2005 Project for the Replacement of Master Meter No, 1 at O. N. Stevens Water Treatment Plant (Project No 8547) ISSUE: The existing meter and telemetry systems do not provide reliable measurement and acquisition of the quantity of treated water delivered into the distribution system. Timely acquisition of this data is needed at 0 N, Stevens Water Treatment Plant for optimization of the water treatment process, FUNDING: Funding is available from the Water Fund, CONCLUSION AND RECOMMENDATION: Approval of the motion as presented. /" E 0 Garafia, PE. Director. Water Services 5A~ el R Escobar, P,E. D e DIrector Engineering Services At~chments: Exhibit A: Background Information ExhIbit B' Contract Summary Exhibit C. Location Map 'lHOME\KEVINS\GEN\VVATER\854i SCADA 2005VI.EAmd1 Memo,doc BACKGROUND INFORMATION SUBJECT: Wholesale Raw Water SCADA Improvements - 2005 (Project No. 8547) PROJECT: This phase of the project will provide the engineering services necessary to result In the installatlor of new raw water meter and telemetry equipment at O. N. Stevens \'Vater Treatment Plant The consultant will provide the design services for the project. and will develop the technical specifications for use by the City in procurement of the 48-lnch meter flow transducer, equipment and fittings, and installation. The consultant will provide flow meter calibration service through a sub-consultant, tie in of the meter to the City's SCADA software, commissioning, operation and maintenance manuals and technical support ADDITIONAL INFORMATION: Reliable measurement and acquisition of water production data is necessary for optimization of water operations and distribution. This data is essential to measure the quantity of water delivered into the distribution system, and to adjust rate of water treatmellt This phase of the project continues the process of automating telemetry monitoring and control of raw water usage. This contract previously resulted in installation of new meters and telemetry to the following City of Mathis Raw Water Intake Pump Station: City of Beeville Raw Water Intake Pump Station; San Patricio Municipal Water Distnct Mary Rhodes Pipeline Raw Water Diversion; San Patricio Municipal Water District Nueces River Water Intake Pump Station; Flint Hills Refinery Raw Water Intake Pump Station; Celanese Refinery Raw Water Intake Pump Station, Mary Rhodes Pipeline Raw Water Intake Pump Station at Lake Texana; and o N Stevens Water Treatment Plant Raw Water Metering Vaults. The Water Department has made these and other improvements to its raw water meters and the raw water SCADA systems Freese and Nichols provided the engineering services on those improvements to the raw water SCADA control and security systems. They also provided services to upgrade and calibrate the raw water meters. The highly technical nature of SCADA software requires that any modifications be compatible with the existing system Modifications can be best prepared by the individuals that designed the original SCADA system CONTRACT DESCRIPTION: A, summary of the contract is attached See Exhibit B. ~ \HOMEIKf '/INS\GEN\\/VATER.'354" SCADA 21'051AEA.wd1 BkgExhAdoc CONTRACT SUMMARY 'he Consultant will provide the following services 1. Design Phase Provide engineering services for the O.N. Stevens High Service Pump Building No.1 master meter #1 improvements, consisting of construction/procurement documents. including 1) installation of treated water meter and telemetry equipment at the o N Stevens WTP. These services shall include a) review available records. archives, and pertinent data related to the Project, identifying some of the potential problems and possible conflicts, intent of design, and improvements required; b) study existing master meter at the plant, Including connections to the existing facilities. Development of the construction sequencing will be coordinated with the City Operating Department(s) and Engineering Services staff; c) prepare 1 set of Construction Documents in City format (using City Standards as applicable), including; specifications and drawings to describe the size and character of the entire Project description of materials to be utilized; and such other essentials as may be necessary for construction and cost analysis; d) prepare final Quantities and estimates of probable costs and probable construction schedule e) provide 1-cOPI 60% plans (plans only-identify needed specifications) to the City staff for review and approval purposes with estimates of probable construction costs. Required With the 60% plans is a HPlan Executive Summary" which will identify and summarize the project by distinguishing key elements such as (1) Meter model and selected features (2) Advantages of selections (3) Specific requirements of the City (4) Standard specifications (5) Non-standard specifications (6) Any unique requirement (7 Cost, alternatives, etc. f) assimilate all review comments. modifications, additions/deletions and proceed to next phase. upon Notice to Proceed g) provide Quality Assurance/Quality Control (QA/QC) measures to ensure that submittal of the 60% and 100% complete plans and complete bid documents with specifications accurately reflect the percent completion designated and do not necessitate an excessive amount of reviSion and correction by City staff Freese and Nichols, Inc. shall submit a letter declaring that all engineering disciplines of all phases of the submittals have been checked, reviewed and are complete prior to submission, and include signature of alt disciplines Including but not limited to structural, civil, mechanical, electrical, etc h) upon approval by the Director of Engineering Services, provide one (1) set (hard copy and electronic of final plans and contract documents suitable for reproduction (In City Format) and said:::ontract documents henceforth become the sole property and ownership of the City of Corpus Christi; I) the City agrees that any modifications of the submitted final plans (for other uses by the City) will be eVidenced on the plans and be signed and sealed by a professional engineer prior to re-use of modified plans; Freese and Nichols, Inc. shall not be responsible for any liabilities resulting from such modification; Jl prepare and submit monthly status reports with action items developed from monthly progress and review meetings -1 hOM€\KEVI ~~S(;EN\W A TE R\8E4 7 5 ';ADA 2005\AEAnld 1 ExhB doc 2 Construction Phase i=reese and Nichols, Ine will provide the following construction phase serVices a provide technical Information for use by the City In procurement of venturi flow meter. pressure transducer temperature sensor, concrete vault and miscellaneous ductile iron piping. Coordinate with City to expedite processing of procurement b! provide flow meter calibration service. The City furnished flow meter, pressure transducer, and flow totalizer will be calibrated by the Utah Water Research Laboratory as a subconsultant to FN C' design, fabricate and commiSSion instrumentation panels for remote monitoring of meter from location within high service pump station. Coordinate with City for tie-in of meter to eXisting SCADA System Instrumentation services will be provided in conjunction with Automated Concepts. inc (.A.CI! as a subconsultant to FNI. dJ prOVide and commission instrumentation tubing, insulation, heat trace, and sump e! provide electncal services for installation and commissioning of conduit and wiring for Instrumentatien Circuit and sump pump. f) preparing Operations and Maintenance Manuals and providing operator training to City staff g, pr'oviding technical support services dUring construction Section 'II Fees is arneflded to read III. FEES Origin_~1 gOl1tr~c:;t.Eee_ Amendment No.1 - -~--_._----_._- --~--_.~ D.N. S~'{ens_WTP Mastl!~Meter No, 1 ~ac~'!1~_l1t Basic Services ~ ~._._- 1. DesIEnE_has~, _ Subtotal Basic Services ------.----- Additi~J:1~-' Service~JAuthorizec!L_ _ _~___ 2. Meter Installation Construction Phase Services ---.----...--- --_.~_._._._- ---'-"- ------- }. Mathis scaffolding s~port___ __',__ 4. Relocate San P_~tricio Instrumentation panel Sub-Total Additional Services Fees Authorized ----'--'-- Total Amendment No. ---- Total Authorize '~HOME\KE\i'NS\GEN\VV!\TER\8547 S;ADA 200',IAE"'-nld 1 ExhBdoc Fee - --- ---_._~. $179,100 ---- $22,303 $22,303 -- $41,622 ---- $8,575 --- $2,000 $52,197 1 Fee $74,500 d Fee I $253,600 ON STEVENS WATER PLANT ie,MprOJect ,-':CJiiCI,extilbl(S \exh8:;47Aawg \ \ '\-) ) -~ .,~ )(\ , ! " 1('H '- ,,' ", l(S " RIVER ~.- ~/ / "'- / FM~__{ I t'..... '" >-1 ~ :r: c.') T: v .~ <( => .:1:::: :-J I I ~I <( ::> :...) :::i -! <( :..:> ~ N c ,~an Patricia !\Iue CeS C OUl7ty o 0:::: w N z: W ~ u 2' Z <C G 0:::: o 2' o Z <C 0:::: o o o 3: ~ 0:::: <C --l U i ____L_ HWY 44 AGNES --l 0 0 0:::: I ~ CORPUS I u I- 0 CHRISTI ::::> en 0 INTERNA TIONAL U1 AIRPORT o o o 3: ~ 0:::: <C --l U NOT TO SCALE LoeA TION MAP PROJECT NO. 8547 WHOLESALE RAW WA TER SCADA IMPROVEMENTS-200S PROJECT ,ITY or CORPUS CHRISTI, TEXAS EXHIBIT "e" CITY COUNCIL EXHIBIT OEPARTMENT OF ENGINEERING SERVICES ~ -- - - - - PAGE: 1 of 1 DATE: 08-15-2005 --- 15 CITY COUNCIL AGENDA MEMORANDUM DATE: May 30,2006 AGENDA ITEM: Ordinance authorizing the City Manager, or his designee, to execute a Use Privilege Agreement with Mako Communications, L.L.C. (Owner), tor the right to construct, maintain, and replace, two (2) awnings within the North Lower Broadway Street nght-ot-way, and one (1) awning within the Peoples Street right-ot-way, adjacent to the Mako Communications building, located at 518 Peoples Street; establishing a tee ot $162.00; and declaring an emergency ISSUE: Mako Communications submitted a request to install private awnings within two city public rights-ot-way extending approximately 3-teet into the public right-ot-way across a public sidewalk, adjacent to the Mako Communications building. REQUIRED COUNCIL ACTION: City Charter requires City Council approval tor use ot any portion ot public right-ot-way tor private purposes RECOMMENDATION: Statt recommends approval ot the ordinance as presented. ~?:;~ IC el N. Gunning~ AICP FAct g Director ot Development Services Attachments: Exhibit A - Background Exhibit B - Ordinance Exhibit C - Site Location Map AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION Background and Purpose of Agreement Mako Communications, LLC (Owner) requested a Use Privilege Agreement (UPA) trom the City ot Corpus Christi to construct, maintain, and replace two (2) one-piece canvas awnings within the N. Lower Broadway Street right-ot-way, and one (1) three-piece section canvas awning within the Peoples Street right-ot-way, adjacent to the Mako Communications building, located at 518 Peoples Street Mako Communications, is constructing two (2) canvas awnings within the N. Lower Broadway Street right-ot-way (602 and 610 N. Lower Broadway), and one (1) three-piece section canvas awning within the Peoples Street right-ot-way (518 Peoples St.), adjacent to the Mako Communications building The three-piece awning will span a maximum of 2'-6" from the face of the building by means of cantilever connection, across the existing 1 a-foot wide sidewalk and be approximately 15-foot in length. The two awnings on N. Lower Broadway will span approximately 3' -0" from the face at the building by means of cantilever connection. across the existing 1 a-toot wide sidewalk with one awning being approximately 6-foot long and the other being approximately 13'-0" long. All three awning structures will be designed to meet City Code and withstand 120 mile per hour wind load. There will be '10 end supports or post supports to the awning structures. within the existing 1 a-toot sidewalk All the awnings must have a minimum 7 -foot clearance between the lowest point or projection and the sidewalk immediately below. The 1 a-foot sidewalk shall be available to normal pedestrian tratfic The existing building located at the N. Lower Broadway and Peoples Street intersection is at zero lot line directly adjacent to both street rights-ot-way. Mako Communications, as owner of the proposed awning will be solely responsible for the structure's appearance and maintenance. All publiC and franchised utilities were contacted. None of the city and private franchised utilities had any objections, provided the applicant meets the specified conditions set out in the UPA Owner is required to obtain a building permit and comply with the 2003 International Building Code, Chapter 31 (Sec. 3105. Canopies and Awnings) and is subject to compliance with its provisions The applicant has been advised of and concurs with the conditions of the Use Privilege Agreement. A one-time tee of $162.00 is recommended for the UPA. \. \gen\agUF)\lJ~a'imako-cc'mm rn2 EXHIBIT A FROM: Michael N. Gunning, .'\cting Director of Development Services DATE: May 23. 2006 TO THE CITY MANAGER OF THE CITY OF CORPUS CHRISTI: ORDINANCE REQUEST DATE RECOMMENDED FOR COUNCIL ACTION: May 30. 2006 ORDINANCE CAPTION: Ordinance authorizing the City Manager. or his designee, to execute a Use Privilege Agreement with Mako Communications, L.L.C. (Owner), for the right to construct, maintain, and replace, two (2) awnings within the North Lower Broadway Street right-of-way, and one (1) awning within the Peoples Street right-of-way, adjacent to the Mako Communications building located at 518 Peoples Street; establishing a fee of $162.00; and declaring an emergency. OTHER PERTINENT INFORMATION TO BE INCLUDED IN ORDINANCE: SPECIFIED CONDITIONS AS PART OF CLOSURE: Mako Communications (Owner) pay the $162.00 UPA fee for the installation of two awnings within the N. Lower Broadway Street right-of-way and one three-piece awning within the Peoples Street flght-of-way All the awnings must have a minimurn 7 -foot clearance between the lowest point or projection and the Sidewalk immediately below. AJI the awnings will extend approximately 3-feet from the face of the building by means of cantilever connection There will be no end supports to the awning structures, within the existing 10-foot Sidewalk 4 All three awnings will be designed and constructed to meet City Code for wind load (withstand 120 mile per hour wind load). All combustible matenals used for the construction of such awning shall be protected with not less than one-hour fire resistance. Owner is required to get a Building Permit and comply with the 2003 International Building Code, Chapter 31 (Sec. 3105 Canopies and Awnings) and is subject to compliance with its provisions. Owner agrees to comply with all the specified conditions and provisions as set out in the Use Privilege Agreement REQUESTED BY: frx- . Gunning, AICP irector of Development Services DATE: 5-24-0,( L\PPROVED DATE: EXHIBIT B AN ORDINANCE AUTHORIZING THE CITY MANAGER, OR HIS DESIGNEE, TO EXECUTE A USE PRIVILEGE AGREEMENT WITH MAKO COMMUNICATIONS, L.L.C. (OWNER) FOR THE RIGHT TO CONSTRUCT, MAINTAIN AND REPLACE TWO (2) AWNINGS WITHIN THE NORTH LOWER BROADWAY STREET RIGHT-OF-WAY AND ONE (1) AWNING WITHIN THE PEOPLES STREET RIGHT-OF-WAY, ADJACENT TO THE MAKO COMMUNICATIONS BUILDING, LOCATED AT 518 PEOPLES STREET; ESTABLISHING A FEE OF $162; AND DECLARING AN EMERGENCY. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS, THAT: SECTION 1. That the City Manager, or his designee, is hereby authorized to execute a use privilege agreement with Mako Communications, L.L.C., (Owner) tor the right to construct, maintain and replace two (2) awnings within the North Lower Broadway Street right-ot-way and one (1) awning within the Peoples Street right-ot-way, adjacent to the Mako Communications Building. located at 518 Peoples Street. SECTION 2. That Owner will comply with the terms and conditions ot the use privilege agreement, a copy of which is on file with the City Secretary, and be subject to the following conditions as part of the use privilege agreement: 1. Mako Communications, L.L.C (Owner) pay the $162.00 UPA tee tor the installation ot two awnings within the North Lower Broadway Street right-ot-way and one three-piece awning within the Peoples Street right-ot-way. 2. All the awnings must have a minimum 7-toot clearance between the lowest point or projection and the sidewalk immediately below. 3. All the awnings will extend approximately 3 teet from the face of the building by means ot cantilever connection. There will be no end supports to the awning structures. within the existing 10-toot sidewalk. 4. All three awnings will be designed and constructed to meet City Code for wind load (withstand 120 mile per hour wind load). 5. All combustible materials used for the construction ot such awning shall be protected with not less than one-hour fire resistance. 6. Owner is required to get a building permit and comply with the 2003 International Building Code, Chapter 31 (Sec. 3105, Canopies and Awnings) and is subject to compliance with its provisions ( . DOCUME Jlauriela\I OCAlS-.J \TempORD-upa-MakoComdoc 7. Owner agrees to comply with all the specified conditions and provisions as set out in the use Privilege Agreement. SECTION 3. That upon written request of the Mayor or five council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule that requires consideration of and voting upon ordinances at two regular meetings so that this ordinance is passed and takes effect upon first reading as an emergency measure this the 30th day of May, 2006. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor Approved May 24, 2006 BY~~ Ga W SmIth Assistant City Attorney For City Attorney H I.EG-DIRgaryws\gan\'is agenda\2006\()5-30\ORD-upa-MakoComdoc Corpus Christi, Texas ____day of _____ _________, 2006 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, an emergency exists reqUiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings: I/We, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully. -,-_.. "--- '-----.---..-.- ..--- Henry Garrett, Mayor City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E. Marez Jesse Noyola Mark Scott 1-1' LEG-DJ R\garyws\garv\VsdgendaI2006{'5-3IJ \( )RD-upa-MakoCom.doc - .-..---....':C ".f' ".-_.~~t:,........~_ .... ............. .... -'--.. " DETAIL" "'. 4 BLOCK ill BBACH PORTION VOL A. PAGE 2 AND :I K.R.N.C.T. 10 3 TEJAS EVENTS CROUP IN( 20040114-19 O,P.R.N.C.T ~2. (8lAO. ltlCl'H) SEE DETAIL S 89' 1 5'37" C 66.09' POINr FOR CORNeR F1/OII rrHICH 5/8" I.R. ser w/ .<tW. CAP FOR RCFLRCNCC BCARS S 811'IS'J7" C - J.OO' DINe is g 11 2 ~ 0.198 ACRES ~ ~ ~ (8.642 SO. FT.) /: Q. jt; B~ r it: a-,~ j."': i -<.i ~ . ~::~. Q~ Fl ~Oo:' STUCCO BUILDING i tJ~' ~ ~ ! m ~ II) 12 N 89'15'37" W 66.86' ~,:t (8WLO. LeNGTH) GF NO. 058501884 .. --- AlL BEARINGS AND DISTANCES REfER TO THE TEXAS STATE PLANE COORDINATE SYSTEY or 1983. TEXAS SOUTH ZONE " JO " .. " to ~ <C '" ... .0 '" o I '" o I ... o SCALE- 1" 30 FEO PLAT OF: e I HEREBY CERTIFY THM THIS PLAT IS TRUE AND CORRECT TO THE BEST or holY KNOWLEDGE. AND BELIEF AS SURVEYED ON THE GROUND holAY 30. 2005 ~mi ~L R.P LS. 65400 0.188 ACRE TRACT BEING OUT Of THE WESTERN PORTION Of LOTS 10. 11 ANO 12, BLOCK 19 OF THE BEACH PORTION OF THE CITY OF CORPUS CHRISTI AS SHOWN ON holAP RECORDED IN VOLUME A, PAGES 2 AND 3 OF THE MAP RECORDS OF NUECES COUNTY, TEXAS UJ ~ .... o --' Q. FRONTIER SURVEYING COMPANY ~~lCiJiF~sf~E'rr~'~f~~r~~:t.~{glls PHON[ (361) 5a. - 11044. F'M: (361) 881 _ 8.340 ....kont..,.u,....,.in9.c;orn Copyrighl C> 2005 AI Rights Re_ 050366.DWG SCI JO AP Scala; Drown by: SCS EXHIBIT C '- o CD ~ o g; ... 0\ '" C/) z o en ZC/) Wz !o... O-QI ~QI Oo.t: Z_CI) <{ZIIl C/) .:J Gl Z.2: Q. 02:0 -OQl ~oQ. ()O~ Ollc::lt') ..Jc( ~~ ~ Z ~ <{ ---1 7L I I t i al- e: >. 1:: al a. o "- Co <II :; Ci: ~:? _M ~.... 0-;; -g ! Ql'1:l >e'U; <II <II =.::: i: 01<11 :: ~ e:'1:I ~ e: <t III Ia ;; , . .. I r Jj~ i -- :- ' Ii' . k ~ 1~ ~!J r ~] I , ! II · II I II L_JJ . . b 'l I . I ., l I .. I . .. ;., i.- . E j.-n---i ! -+--- ---- -- .~-_..- d --r---_ I i ! \ j \~ \ \ I I --_.~ ~ <f ) oj) -- <II- ~ >. 1:: <II a. o "- a. t;: ~J _l") ~.... 0-;; -g! <11'1:1 )(W <II Ql ~ =.c ~:: 01<11 .: ~ e:-c ~ c: <t: III -- ~ ~I \ I \----- o CJ 1\" 1\ I // S9NINMV a3S0dO~d 133M1S A'v'McrvOM8 M3MOl oN ~ .J <( ~ ~ 'I'l I- W W a:: I- en en w oJ C1. o w C1. 16 AGENDA MEMORANDUM May 23, 2006 AGENDA ITEM: a. Public hearing to amend the Platting Ordinance of the City of Corpus Christi by adding the authority to delegate duties under the Platting Ordinance and specifying authority for signing plats by a professional engineer employed by the City. b. First Reading Ordinance to amend the Platting Ordinance of the City of Corpus Christi by adding the authority to delegate duties under the Platting Ordinance and specifying authority for signing plats by a professional engineer employed by the City ISSUE: To improve the efficiency of the platting process the proposed ordinance delegates certain plat authority to the Development Services Engineer with respect to approval and recordation of plats. REQUIRED COUNCIL ACTION: Provide opportunity for public input and adopt ordinance to amend Platting Ordinance to add a provision for delegation of authority and revision to Section III.H.1.k) (1), Section III.H.5., Section IV.A.12.c)(3), Section V.A.3.a)(1} and Section V.A.3.c) RECOMMENDATION: Staff recommends the proposed amendment to the Platting Ordinance /' ~~. I R. Escobar, P.E., irector of Engineering Services .$) 17. 'Pt ~~ Mi ael N. Gunning, AICP Acting Director of Development Services Attachment Exhibit A - Background Information Exhibit B - Ordinance AGENDA MEMORANDUM ADDITIONAL BACKGROUND INFORMATION SUBJECT: Platting Ordinance Amendment to Delegate Duties and Specify Signing Authority for Final Plats BACKGROUND: The City of Corpus Christi is committed to improve the platting process under the direction of the Department of Development Services. The proposed Platting Ordinance amendment is intended to modify the development process to delegate authority to subordinates and improve responsiveness to the public. Approval of this ordinance will authorize the Development Services Engineer to sign and approve all plats for recordation. The efficiency will be realized in the current time frames with the Director of Engineering Services/City Engineer being required to sign all plats. By transferring this authority to the Department of Development Services, once the Development Services Engineer has approved the plat, the plat can be signed and recorded without further delay. Planning Commission at the regularly scheduled meeting on May 17, 2006 will review the proposed amendment and is anticipated to recommend adoption. EXHIBIT A Page 1 of 5 AN ORDINANCE AMENDING THE PLATTING ORDINANCE BY ADDING THE AUTHORITY TO DELEGATE DUTIES UNDER THE PLATTING ORDINANCE AND SPECIFYING AUTHORITY FOR SIGNING PLATS BY A PROFESSIONAL ENGINEER EMPLOYED BY THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALER CLAUSE; PROVIDING FOR PUBLICATION; AND PROVIDING FOR AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TeXAS: SECTION 1. That Section I "General," of the Platting Ordinance of the City of Corpus Christi Texas, IS amended by adding a new subsection D "Delegation of authority," which shall read as follows: seCTION I - GENERAL .. * * I. D. Deleaation of authority. Whenever a section of this Ordinance requires or authorizes an officer or employee of the city to do some act or perform some duty, it shall be construed to authorize the officer or employee to desiqnate. deleqate and authorize subordinates to perform the act or duty, unless the terms of the section specifically provide otherwise. SECTION 2. That Subsection H "Final Plat." of Section III "Procedure," of the Platting Ordinance of the City of Corpus Christi. Texas, is amended to read as follows: SECTION III - Procedure .. * III. H. Final Plat: '" * * III H. 1. kl (1) STATE OF TEXAS COUNTY OF NUECES This final plat of the herein described property approved by the Department of Development Engineering Services Enqineer of the City of Corpus Christi, Texas. This the _day of , 20_. Director of Engineering Services/City Engineer Development Services Enaineer H \LEG-DIR\Shared\GarvS\agenda\2006\05-23\Plat approvaldoc III H Page 2 of 5 * * * 5 Upon approval of a final plat, the applicant shall aCknowledge all required improvements as specified by this ordinance and found applicable by the Planning Commission. The Director of Development Engineering ServiceslG#y-Engineer shall not endorse the final plat until seventy-five percent (75%) of the required improvements are in place. and in compliance with Section \/, Paragraph A Subparagraph 3.a) or until security for the construction of the improvements has been provided in compliance with Section V. Paragraph A, Subparagraph 3.b) or until payment in lieu of the construction of a half street or payment for the half street and related infrastructure improvements has been received in accordance with Section IV. Paragraph A, Subparagraph 12. The Chairman and the Secretary of the Planning Commission are authorized to endorse such final plat as approved and allow said plat to be recorded with the County Clerk of the appropriate county Jurisdiction AI! required fees shall be paid prior to recordation. * " SECTION 3. That Subsection A "Streets," of Section IV "Design Standards," of the Platting Ordinance of the City of Corpus Christi. Texas. is amended to read as follows: SECTION IV - Design Standards IV. A. Streets: A 12 " * " * C) (3 ) The deposit of the City. if any, and the deposit of the subdivider shall be in an amount as determined by the City Council and shall be posted to the Infrastructure Trust Fund prior to the Director of Development Engineoring Services~ Engineer signing the plat; " * SECTION 4. That Subsection A "General," of Section V "Required Improvements," of the Platting Ordinance of the City of Corpus Christi. Texas, is amended to read as follows: '-' \LEG-DIRIShared\GaryS\agenda\20e'6\05_23\Plat aporcval.doc Page 3 of 5 SECTION V - Required Improvements v. A. General: v A 3 v A. 3 a) ( 1 ) * * * * * The developer shall submit to the Director of Development Engineering ServiceslGffy-Engineer a sworn affidavit requesting approval of the plat by the Director of Development Engineering ServicesfGity Engineer and agreeing to complete the required public improvements in accordance with such plans to the satisfaction of the Director of Engineering Services/City Engineer prior to any occupancy of any building within the subdivision, and agreeing that temporary utility service prior to completion of the improvements may be terminated by the City with 24- hour notice if required public improvements are not completed within ninety (90) days of recording the plat or replat; * * The Director of Development Engineering ServicestGtty Engineer shall accept cash in lieu of construction of a half street or cash in lieu of both a half street and either or both of its related water and sanitary sewer infrastructure improvements, if the Planning Commission has approved the plat containing the half street in accordance with Section IV.A 12 and Re may sign the plat if the requirements of Section IV.A.12 have been met and the Director of Engineering Services/City Engineer Re find~f within his/her sole discretion, that seventy-five(75%) of the remaining required public improvements for water, sewer, streets and drainage as set forth on plans previously approved by the Director of Engineering Development ServicestGtty Engineer have been completed * * SECTION 5. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final Judgment of a court of competent jurisdiction, it shall not affect any other section, l; ) H \LEG-DIR\Shared\GaryS\agenda\2006\05-23\Plat approval.doc Page 4 of 5 paragraph, subdivision, clause. phrase, word, or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase word or provision of this ordinance be given full force and effect for its purpose. SECTION 6. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed SECTION 7. That publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 8. This ordinance shall take effect upon and after publication of this ordinance -I. \LEG-DIR\SharedIGaryS\agendaI2(:06\05_23\Piat approva!.doc Page 5 of 5 That the foregoing ordinance was read for the first time and passed to its second reading on this the _ _ day of__ , 2006, by the following vote: Henry Garrett Rex A. Kinnison Brent Chesney John Marez Melody Cooper Jesse Noyola Jerry Garcia Mark Scott Bill Kelly That the foregoing ordinance was read for the second time and passed finally on this the ____ day of __, 2006 by the following vote: Henry Garrett Rex A. Kinnison Brent Chesney John Marez Melody Cooper Jesse Noyola Jerry Garcia Mark Scott Bill Kelly PASSED AND APPROVED. this the ___ day of ,2006. ATTEST CITY OF CORPUS CHRISTI, TEXAS Henry Garrett Mayor Armando Chapa City Secretary APPROVED: May 17, 2006 ~~~~ ---- Assistant City Attorney for City Attorney H \LEG-DIR\Shared\GaryS\agenda\2Cl06\05-23\Plat approval. doc 17 MEMORANDUM May 23, 2006 TO: Honorable Mayor and Council Members / FROM: 'Angel R Escobar, PE J..r1l: ~~ Director - Engineenng Service/ ' SUBJECT: Truck TraffiC - Gulf Compress Please find attached a letter from Gulf Compress dated May 26, 2006, See Exhibit A The Compress will be working with the gin managers to ensure their contract truck drivers exercise extra caution on Parr and 19th Streets, The Compress will also widen the dnveway entrance within the public right of way to minimize dust Attachments Exhibit A Gulf Compress Letter H \HOME\KE VINS\GE N\STR E ETS\Pa! rStreet\Merno T 'ns mtC ompress Ltr doc COMPRESS po. BOX 1378.361-882-5489.201 N. 19th ST. CORPUS CHRISTI, TEXAS 78403 DELTA DIVISION. P.O. BOX 459.956-689-2728 RAYMONDVILLE, TEXAS 78580 May 26, 2006 Mr. Kevin Stowers Asst. Dir. Of Engineering Services City of Corpus Christi P.O. Box 9277 Corpus Christi. TX 7840 I Dear Mr. Stowers, '\ . stt\tct their truck drivers to drive slow 19th Streets. We want to be good extend the apron op the north side of wn. tdoe aUI and of course the ill be careful when bringing their Please find the en 'ell gin that brings cotton to our main plant We will urge t . and watch for neighbors. I have' our exit street in The Gin managers will instruct tit' drivers themselves are professional loads to us. ,'t Thank you and Ricardo for your guidance and help. Regards, rL. \ (~_LL~~L e\ Bob W eatherford~C./ ,- President and CEO May 26,2006 To: From: Re: Gin Managers Bob Weatherford Gin Trucks Coming In To Plant #1 We ask for your help this coming cotton season. We have received some complaints from our neighbors that live on Parr Street, the short street behind Plant # 1, concerning the speed and noise generated by the trucks that bring cotton in from your gins. We ask you to please instruct your gin's drivers who bring cotton to the Compress by using Parr Street to watch their speed and be mindful that there could be some children at play near that street We have been in contact with the City of Corpus Christi's Traffic Engineering Department about the use of Parr Street. They will remove the "No Truck" signs but will insta]] "Slow" and "Children at Play" signs to remind the truck drivers to be careful as they use Parr Street. We want to be good neighbors and observe the signage that will be erected. We don't have any problems with using 19th Street but we do ask you to instruct your drivers to observe all signage and to be mindful of the residences around our 19th Street location. .--......--...--.-.......- ,,'--.- -~._---,.<_.._.._--_..<.-- AGENDA MEMORANDUM .. '-~-" -'- --,,_.~-_.,,-~ --- ----..,.-..--.--.-. .-.-.. -"._.~ ----------- May 23, 2006 SUBJECT: Truck Traffic - Gulf Compress AGENDA ITEM: Amending the Code of Ordinances, City of Corpus Christi, Chapter 53, Traffic, revising Section 53-251, Schedule II by adding the category "other through streets"; by adding Parr Street, from Comanche Street to Ahern Street, Ahern Street, from Parr Street to Bluntzer Street, and Bluntzer Street, from Ahern Street to Agnes Street; providing for severance; providing for publication; and providing for penalties. FUNDING: The Annual Street Operating Budget will address needed signage. RECOMMENDATION: Approval of the ordinance as presented. / ~ ~ .s-/I~6 . I . Escobar, P. E. · irector of Engineering Services AQ.QlTIONAL SUPPORT ~A TERIAL Exhibit A Additional Information Exhibit B-E Site Map CIDQCUME-1 luser\LOCALS-1 ITemplAgenda Memo doc ADDITIONAL INFORMATION ORDINANCE: Adoption of the ordinance is necessary to permit continued operation of the Gulf Compress in compliance with the Chapter 53, Traffic of the City Code of Ordinances. Background Gulf Compress Incorporated is a cotton bale storage and distribution business located at 201 North Nineteenth Street. They have over one and one-half million square feet of warehouse storage space that fronts Nineteenth Street to the east and Parr Street to the west. The Gulf Compress warehouses were built in the 1920's and have been in operation ever since. Access to the warehouses from both sides is critical to their business operations. During the 2005 cotton season, Traffic Engineering received a complaint from a resident on Parr Street concerning truck traffic. Review of applicable ordinances with the City's Legal Department determined that Parr Street was not listed as a through street. This effectively prohibits truck traffic except for trips necessary to make deliveries on the Parr Street or surrounding streets. A "No Trucks" sign was installed by the City Street Department to inform drivers of the prohibition. Subsequently, Mr. Bob Weatherford, President and C.E.O. of Gulf Compress met with Traffic Engineering and the Engineering Department as to alternatives. The staff suggested several alternatives to the Compress which ultimately did not prove feasible. Mr. Weatherford then requested truck traffic be allowed on Parr Street from Comanche to Ahern Street, on Ahern Street from Parr to Bluntzer and on Bluntzer from Ahern to Agnes. See Exhibit "A_1 and "A_2". Public Notice Thirty seven public notices were mailed to property owners adjacent to the streets being considered for use by heavy trucks. Of these thirty seven Staff received four phone calls expressing their position with regard to the request to allow heavy truck traffic on these streets. Mr. Francisco Garcia of 221 Parr Street and his wife are both against the request due to the constant noise on a 24 hour basis during the harvest season from August to November of every year. The dust or mud when it rains that the trucks promote is as annoying as the noise they make. They complained about not being able to sleep at night because they live right in front of the entrance and exit driveway to the warehouse located at about the midpoint of Parr Street. Mrs. Soyla Valdez of 229 Parr called on behalf of her father Pedro Valdez says she is concerned for the children in the neighborhood that are constantly in the street and not properly supervised. She does not think it is a good idea to allow the trucks onto Parr Street. She says she has seen a lot of close calls. Mrs. Domitilia Saldana called on behalf of her father Eulalio Rodriquez of 203 Parr Street to say they have no objection to allowing the trucks delivering cotton to the Gulf Compress warehouses to continue doing so as they have for many years. Mrs. Enriqueta Rios of 307 Parr is concerned with the fact there are no sidewalks and people have to walk on the street She is not opposed to the trucks saying they are covered and not noisy Public Hearing The Traffic Advisory Committee held a public hearing on May 8, 2006 at 2:00 p.m., to hear comment and concerns with regard to the proposed amendment to city ordinance allowing for heavy truck traffic on said portions of Parr, Ahern and Bluntzer Streets. Mr. WiHiam H. Green. Chairman of the Traffic Advisory Committee presided over the hearing at which a presentation of the facts was made by city staff and comments were requested of anyone wishing to speak at the hearing. Mr. Bob Weatherford, President and C.E.O of Gulf Compress was the only speaker that commented for the record that afternoon He basically reiterated his written request. See Exhibit "A-2". Prior to the meeting, Mr Francisco Garcia of 221 Parr Street signed up to speak but did not come forward when request for public comment was announced by the Chairman presiding over the hearing. The chairman made two (2) requests for public comment. Mr. Garcia did tell City Staff he was not sure if he would speak or not and he was advised to sign in case he did decide to speak. The Traffic Advisory Committee recommended amendment of the ordinance to permit truck traffic on Parr Street , Ahern and Bluntzer to permit continued operation of the Compress with the stipulation that additional cautionary advisory traffic signs be installed Mr. Garcia came to the Traffic Engineering office the following morning to say he was never called up to speak and presented a petition opposing heavy truck traffic on the street sections in question. The petition was signed by three (3) notified owners, three (3) people on the 100 block of Bluntzer, which is just north of the portion of Bluntzer being considered and nine (9) tenants living on Parr Street. Mr. Garcia was reminded about the announcements made by the Chairman requesting pubUc comment and that he would have another opportunity to speak to City Council before the ordinance would be approved. He said he did not hear the announcement and that he may come to speak at the council meeting. The City Legal Department reviewed the circumstances, and determined that not calling a person by name did not affect the validity of the public hearing Exi.ting Conditions Parr Street, Ahern and Bluntzer are classified as residential streets with fifty feet of right of way and all are improved with twenty feet wide asphalt pavement roadways. There are no curb and gutters or underground drainage. There are no sidewalks. There are Exhibit A Pa e 2 of 3 twenty two residential structures, two commercial structures and several vacant lots along Parr Street. See Exhibit "B" There are two residential structures, one vacant apartment building and several vacant lots on Ahern Street. See Exhibit "C" There are several vacant lots, one used car lot and one storage warehouse along Bluntzer. See Exhibit "D" The zoning IS primarily 1-3, heavy industrial, with one property zoned as R- 1 B, one family dueling residential, along the street frontage in question. See Exhibit "E". Traffic IS very light with counts less than 400 cars per day. Research of traffic accidents for the past three years reveals three accidents. Two at the intersection of Bluntzer and Agnes and one on Parr at the stop sign with Bluntzer. The available access for trucks to the Gulf Compress warehouses is shown in Exhibit 'A-2". They have access off of IH 37 via Port Avenue to Comanche and in off of Nineteenth Street. They have access off of SH 358 (Cross-town Expressway) via Agnes to Nineteenth Street. These are all "through streets" listed in City of Corpus Christi code of ordinances Section 53-251, Schedule II. In accordance with Section 53-101 only 'through streets" listed in Section 53-251, Schedule II are available for use by trucks weighing more than 2000 pounds There is an exception that if deliveries are being made to a location on a street not identified as a "through street" trucks are allowed for limited periods of time and by means of the shortest most direct route. However in Industrial zones if there are both "through streets" and residential streets to a business only the established truck route may be used even if it is not the shortest most direct route. Parr, Ahern and Bluntzer are not included as through streets in Section 53-251 Schedule II. RECOMMENDA liON: Approval of the ordinance as presented. COMPRESS PO. BOX 1378. 361-882-5489.201 N. 19th ST. CORPUS CHRISTI, TEXAS 78403 DELTA DIVISION. P.O. BOX 459 . 956-689-2728 RAYMONDVILLE, TEXAS 78580 1\1r. Kevin StO\vt"rs Ass istant Director 0 r Engineerm).! City of Corpu~ Chri~ti 1201 Leopard St P () Box 9277 Corpus ChristL I exas 7846(/ Febmary 17. 2006 Dear Mr. S to vIers. '\ Gulf Compress IS in th"l co agricultural cooperatIve, wpr year we store over C( Impress stores the' 011 a normal year 500,000 hales to 0 . usiness. Weare an .' farmers. On a normal roduc , em third of Texas. Gulf . tribution to textile mills all over the world. 'ales to {J S mills and export approximately We have three s N. I qth Street' s 19:W'c; Because of coHon harvest seas property. We nOTInally use Parr critical to our busines:-, that we do so. propel1y \Va~ huiJt thert' orpus Christi but our main location is at 201 g bales of cotton silpe the early to mid operty and the volume of trucks during the StreetfoL )hel\ entering or leaving the ..we.. rlhg the harvest but it is een the ca~<e since before any residential A few months ago we were told that Parr et is not approved for truck traffic and "No Trucks" signs were placed at the entranc d exit to this short street. Apparently the ordinance has been in place f{1J several years without our knowledge and without being enfc)rced. I Jnless w~' are granted relief. it \vill greatly impact our business. We have tried to find a way to lontinue this busines~ without using Parr, hut cannot do so. Our ability to do business depends on the use of that street. We also think it's fair to point out that we were here first. Cotton trucks were using that area long before anyone moved there We believe that should allow us to be "grand-fathered" and therefore exempt from the ordinance. and allowed to continue to do business as in the past. Exhibit "A-I" f f that is not possible, then we would ask that the ordinance be changed to allow a -;ea..<;onal (a few weeks), agricultural exemption from the ordinance, or to have Parr Street designated as approved for commercial traffic Please lel us kllO\\ If Wt' need to provide more information or how to proceed towards resolution of thlS problem. 1t will soon be Julv <lid hopefully another cotton crop will be ready for harvest .." interely. .'\ 1 / ~ CLtLtlu~L;~ Bob Weatherford \ - President & ('E( , Exhibit "A-2" -+ ~ , .., .J- -ji.. "'~.' ~. oj' ',: ~'- . i: Q: o ,:i: iCJ !: ~ o -J ...: CI) ,Q:: ": It ': Exhibit "B" 20f2 ..... i ;i: ~ ::, o CI) o ~ o o .... ...: CI) ~ ~ ~ Exhibit "0" 10f2 / I / / / /' / / /f ~ ~. O::t o~ <::i (!), ~ ~ i' .0 o ...,J -i ...,:, CI) 0:: ~f ~. ...,J [.:. OJ; "---"1 ~ N Exhibit "E" Page 1 of 9 ORDINANCE AMENDING THE CODE OF ORDINANCES, CITY OF CORPUS CHRISTI, CHAPTER 53, TRAFFIC, REVISING SECTION 53-251, SCHEDULE II BY ADDING THE CATEGORY "OTHER THROUGH STREETS"; BY ADDING PARR STREET, FROM COMANCHE STREET TO AHERN STREET, AHERN STREET, FROM PARR STREET TO BLUNTZER STREET, AND BLUNTZER STREET, FROM AHERN STREET TO AGNES STREET; PROVIDING FOR SEVERANCE; PROVIDING FOR PUBLICATION; AND PROVIDING FOR PENALTIES. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS' SECTION 1. Section 53-251 of the Code of Ordinances is revised to read as follows: "Sec. 53-251. Schedule II-Through Streets: Arterial~ollector. and Other Ihrough ~treets. In accordance with the provisions of section 53-130, and when signs are erected giving notice thereof, drivers of vehicles shall stop at every intersection before entering any of the follOWing streets or parts of streets: Arterial Streets A prinCipal street at A 1--A8 classification per the city's urban transportation plan which is continuous across a significant segment of the city and which is intended to '~onnect with through collector and neighborhood collector streets; curbside parking restricted: Intended to accommodate a speed limit of 35 MPH or higher, and a traffic volume in excess of five thousand (5,000) vehicles per day. Agnes Street, West City Limits to Carancahua Street. Airline Road. Ocean Drive to Rodd Field Road. Airport Road/Agnes Street to Horne Road. Alameda Street Ennis Joslin Road to Ayers Street. Ayers Street Ocean Drive to south City Limits. Baldwin Boulevard Leopard Street to South Staples Street. Bear Lane. Old Brownsville Road to Joe Mireur Road. Breakwater Avenue, U.S. 181 to Navigation Boulevard. H'\LEc;.DIRWeronlcaOIENGINEERINGITRAFI=IC ')r, O~23 CeJ.Amd Tratk ParrSrOtherThroughSts do, Page 2 of 9 Buffalo Street, IH 37 to North Broadway. Buford Street, South Staples Street to Ocean Drive. Burleson Street, Surfside Boulevard to West Causeway. Bush Avenue, S.H. 358 to Holly Road. Callicoatte Road. Up River Road to south City Limits. Carancahua Street, Buford Street to Padre Street (I.H. 37 No. Frontage). Carbon Plant Road, I.H. 37 to northern terminus. Causeway Boulevard, Breakwater Avenue to north City Limits. Chaparral Street, MesqUIte Street to Coopers Alley. Cimmarron Boulevard, Airline Road to Yorktown Boulevard. Clark wood Road (FM 2292). Up River Road to south City Limits. Comanche Street, Palm Street to Carancahua Street. Coopers Alley. T ancahua Street to Shoreline Boulevard. Corn Products Road, Up River Road to Hopkins Road. County Road 36, F.M. 2292 to western terminus Doddridge Street, South Staples Street to Ocean Drive, Elizabeth Street, Staples Street to Ocean Drive. Everhart Road, Alameda Street to Oso Parkway. Ennis Joslin Road. Alameda Street to South Padre Island Drive and future extension at Wooldridge Road. Farm to Market Roadways, all. Flour Bluff Drive. South Padre Island Drive to Yorktown Road. Gollihar Road. Staples Street to Airline Road; Staples Street to Greenwood Road. Greenwood Drive. South Port Avenue to south City Limits. Heinsohn Road. S.H. 44 to Bear Lane. Holly Road. Bush Avenue to Lexington Road. Horne Road, Old Brownsville Road to Ramsey Street. Interstate 37 John Sartain Street, Mesquite Street to Shoreline Boulevard. Kinney Street, Tancahua Street to Shoreline Boulevard. H:\lEG,DIR\ V erOfllcaOlENGINEERING\ TRAFF IC.o6 D523 Ord ,Amd T rattic, ParrS tOtherThroughS ts, doc Page 3 of 9 Kostoryz Road. South Staples Street to Saratoga Boulevard. Laredo Street. Carancahua Street to 21 st Street Lawrence Street, Lower Broadway to Shoreline Boulevard. Leopard Street. Upper Broadway to I.H. 376 west Frontage. Lipan Street. Upper Broadway to Up River Road. Manning Road. I.H. 37 to S.H 44. McKinzie Road, I H. 37 East Frontage to S.H. 44. Mesquite Street, Chaparral Street to Coopers Alley. Morgan Avenue, Airport Road to Ocean Drive. NA S. Drive S.H 358 to Naval Air Station South Gate. Navigation Boulevard, Old Brownsville Road to Breakwater Avenue. Ocean Drive. South Shoreline Boulevard to the Naval Air Station North Gate. Old Brownsville Road (FM 665). Airport Road to south City Limits. Old Robstown Road. Agnes Street to Leopard Street Park Road 22 (South Padre Island Drive), Naval Air Station Drive to south City Limits S H 361, Park Road 22 to north City Limits. Port Avenue. (North) U.S. 181 to Morgan Avenue; (South) Morgan Avenue to Ayers Street Rand Morgan Road, IH. 37 to S H. 44. Resaca Street. Mesquite Street to Ocean Drive. Rodd Field Road (S.H. 357), S H. 358 to south City Limits. Santa Fe Street, Buford Street to Robert Street Saratoga Boulevard (SH 357). Rodd Field Road to future extension at Rand Morgan Road. Sedwick Street. F.M. 3386 to Southern Minerals Road Schatzel Street. North Shoreltne Boulevard to Upper Broadway. Shoreline Boulevard, (North) Coastal Avenue to Pearl Street and Hughes Street to Coopers Alley. (South) Coopers Alley to Ocean Drive. Southern Minerals Road, Up River Road to S.H. 44. Staples Street, (North) West Broadway Street to Kinney Street, (South) Kinney H:\lEG.DIR\VeronicaO\ENGINEERING\TRAF"!Cr'fi O~23 (i'jAmd TraffiC ParrSiOtherThroughSts doc Page 4 of 9 Street to south City Limits. State Highway 44. State Highway 286. State Highway 358 (Padre Island Drive), I.H. 37 to Naval Air Station Drive. Talbert Street. S.H. 44 to southern terminus. Tancahua Street. I.H. 37 to Buford Street. Third Street. Ayers Street to Buford Street. Twigg Street, Mesquite Street to Ocean Drive. US. Highway 77 US Highway 181. Up River Road, Lipan Street to McKinzie Road; Violet Road to Sharpsburg Road; Leopard Street to U.S. 77. Violet Road. I.H. 37 to S.H. 44. Waldron Road, Naval Air Station Drive to south City Limits. Water Street, (North), Hughes Street to Coopers Alley; (South), Coopers Alley to Buford Street. West Pomt Road. S.H 358 to Greenwood Drive. Weber Road, South Staples Street to south City Limits. William Street. Lower Broadway to Shoreline Boulevard. Yorktown Boulevard, Laguna Shores Road to future extension at Saratoga Boulevard. Collector Streets A principal street of C1--C2 classification per the city's urban transportation plan which is semi-continuous across a smaller segment of the city, typically connecting one or more subdivisions and crossing one or more arterials; curbside parking generally permitted; and which is intended to accommodate a speed limit of 30--45 MPH. and a traffic volume in excess of 1,500 vehicles per day but not greater than 20.000 vehicles per day 19th Street Agnes Street to Lipan Street. Alpine Road. Corn Products Road to Rand Morgan Road. H:ILEG.DIR\ V eronlcaOIENG INEER ING\TRAFF Ie. 06 ':'523 ')rdAmd. T raf!ic P arrS tOtherThroughSts. doc Page 5 of 9 Antelope Street, I.H. 37 to Upper North Broadway. Bates Drive. future extension from Old Brownsville Road to future extension at FM 763. Beach Avenue, Surfside Boulevard to West Causeway Boulevard. Blanche Moore Drive. S.H. 358 to Williams Drive. Bockholt Road, Sedwick Road to McGloin Road. Bratton Road. Weber Road to Brezina Road. Brazina Road. future extension of Yorktown Boulevard to Bratton Road. Bronco Road. Sedwick Road to S.H. 44. Brooks Road. Airline Road to Oso Parkway. Brownlee Boulevard, Staples Street to Winnebago Street. Buddy Lawrence Drive, Leopard Street to North City Limits. Cantwell Road. Up River Road to Baldwin Boulevard. Caribbean Drive, Waldron Road to Laguna Shores Road. Carmel Parkway, Gollihar Road to Alameda Street. Carroll Lane Staples Street to future extension at Kostoryz Road. Clarkwood Road. Agnes Street to Up River Road. Cliff Maus Drive, S H. 358 to Bear Lane. Cimmaron Boulevard, Yorktown Boulevard to future extension as Oso Parkway. Columbia Parkway, Horne Road to S.H. 358. Corona Drive. Flynn Parkway to Everhart Road. Don Patricia Road. Flour Bluff Drive to future extension at Laguna Shores Road. Flato Road, Agnes Street to Bear Lane. Flour Bluff Drive, S.H. 358 to Matlock Drive. Glenoak Drive, Flour Bluff Drive to Laguna Shores Road. Graham Road, Flour Bluff Drive to Laguna Shores Road. Haven Drive, McKinzie Road to future extension at Violet Road. Hearne Road, Calltcoatte Road to Up River Road. Hereford Road, Leopard Street to Agnes Street. Hopkins Road, Southern Minerals Road to S.H. 358. Horne Road. Ramsey Street to Kostoryz Road. H:\LEG-OIR\VeronlcaOIENGINEERING\TRAFFICC>60'j23 (J;dAmd Traftic Parr"tOtherThroughSts.doc Page 6 of 9 Hustlin' Hornet Drive, Waldron Road to Laguna Shores Road. Joe Mireur Road (FM 763), S.H. 44 to Bear Lane. Laguna Shores Road, Park Road 22 to Yorktown Boulevard. Lands Road, Greenwood Drive to Ayers Street (S.H. 286). Lantana Road. Interstate 37 to Up River Road and Leopard Street to Lexington Boulevard. Leeward Drive, St. Bartholomew Drive to Windward Drive. Lexington Boulevard, Leopard Street to S.H. 358. Lipes Boulevard, South Staples (F.M. 2444) to future extension at Airline Road. McArdle Road, Ayers Street to Ennis Joslin Road. McBride Lane Up River Road to Agnes Street. McCampbell Road, Leopard Street to Agnes Street. McGloin Road, Clarkwood Road to future extension of Manning Road. McKinzie Road, Interstate Highway 37 to future extension at planned extension of Violet Road. Norton Street. Kostoryz Road to Ramsey Street. Nueces Bay Boulevard, West Broadway to Leopard Street. Omaha Drive, Interstate 37 to Agnes Street. Oso Parkway, Yorktown Boulevard to Lens Drive. Palm Drive, Interstate Highway 37 to Comanche Street. Park A venue, Shoreline Boulevard to Water Street. Peoples Street. Lower Broadway to Shoreline Boulevard. Poth Lane, Interstate Highway 37 to Buddy Lawrence Street. Purdue Road. Flour Bluff Road to Waldron Road. Ramsey Street, Horne Road to Norton Street. Rhew Road, Leopard Street to Sedwick Road. Richter Street, S.H. 358 to future extension at Holly Road. Robert Street, Alameda Street to Ocean Drive. Sam Rank in Street, Port Avenue to I.H. 37. Santa Elena Street, Airport Road to Joe Mireur Road. Schanen Boulevard, Weber Road to Everhart Road. H:\LEG-DIR\ V eronieaO\ENGINEE RING\ TRAFFIC\06 0523 Ord. Amd. T raffie ParrS10therThroughSts. doc Page 7 of 9 Sea Pines Drive. South Padre Island Drive (Park Road 22) to west terminus. Sharpsburg Road. Interstate Highway 37 to Up River Road. Slough Road Airlme Road south to future extension at Oso Parkway. Starr Street Shoreline Boulevard to Lower Broadway. Suntide Road Up River Road to northern terminus. Surfside Boulevard, (East) Elm Street to Pearl Street, (West) U.S. 181 West Frontage Breakwater Avenue. Surfside/Timon Boulevard, Elm Street to Gulden Street. Tancahua Street, Interstate 37 to Brewster Street. Tarlton Street. Ayers Street to Greenwood Drive. Taylor Street, Shoreline Boulevard to Upper No. Broadway. Texan Trail. Staples Street to Santa Fe Street. Tiger Lane. Weber Road to Flynn Parkway. Trojan Drive. Greenwood Road to S.H 286 Tuloso Road, Leopard Street to Up River Road. Villa Drive. Baldwin Boulevard to Agnes Street. West Broadwav Street, Nueces Bay Boulevard to U.S 181. West Point Road. S.H 358 to future extension of Holly Road at Old Brownsville Road Westchester Drive. Leopard Street to Baldwin Boulevard. Whitecap Boulevard, west terminus to Windward Drive. Williams Drive. Everhart Road to Rodd Field Road. Windward Drive, Whitecap Boulevard to St. Bartholomew Drive. Winnebago Street I.H. 37 North Frontage to No. Port Avenue. Wooldridge Road. Staples Street to future extension at planned extension of Oso Parkway Other ThroUGh Streets Parr Street, Comanche Street to Ahern Street. Bluntzer Street, Ahern Street to AQnes Street (S.H. 44). Ahern Street, Parr Street to Bluntzer Street." H:\LES.OIRIVwonlcaO\ENGINEERINGITRAf'FIC06 C'~23 (-,dAme Traffic P8rrSIOtherThroughSts doc Page 8 of 9 (1966 Supp.. S 21-154; Ord. No. 18745, S 2.3-12-1985; Ord. No. 22836, S 1,1-28- 1997) * * * SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent Jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. SECTION 3. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. H: \LE G-DIRIV eronlcaO\ENGiNEE R ING\TRAFF IC\06 052:, OrdAmd. T mffic ParrStOtherThroughSts. doc Page 9 of 9 That the foregoing ordinance was read for the first time and passed to its second reading on this the _____ day of ___________,2006, by the fOllowing vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E. Marez Jesse Noyola Mark Scott That the foregoing ordinance was read for the second time and passed finally on this the day of ____ __ ___ ___ 2006 by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E. Marez Jesse Noyola Mark Scott PASSED AND APPROVED this the ___ day of _____ ,2006. A,TTEST -----..------..-- --"----.- Armando Chapa City Secretary Henry Garrett Mayor, City of Corpus Christi - Veronica Ocanas Assistant City Attorney for City Attorney H:\LE G -DIR\ V eronlcaO\EN GINEE RING\ TRAFFIC\06. 0'1 23 (lrd .Amd T rafilc P a rrStOtherThroughSts doc 18 ..~ .-- AGENDA MEMORANDUM PUBLIC HEARING - ZONING (City Council ActIOn Date: 5/30106) Case 1'\0. 0406-06-GP McCreless, Juan Mejia and Encino-Cimarron GP c/o Tim Clower: A zoning change from a "R-l B" One-family Dwelling District/"A-l" Apartment House District/"A-2" Apartment House District to a "B-1" Neighborhood Business District. The property being 39 acres out of Flour Bluff and Encmal Farm and Garden I racts, Section ii. Lots 6. 7. 8. 9 and 10, located 375 feet southwest of the mtersection of Saratoga BOI devard and Clmarron Boulevard. PJanBin2 Commission and Staff's Recommendation (4/19/06): Approval of the "B-1" Neighborhood Business District ~uested Council Action: Approval of the "B-1" Neighborhood Business District. Purpose of ReQuest: fo develop a retaIl shopping center. Summary: · rhe applIcant has requested a change of zoning from a "R-1B" One-family Dwelling District, an "A- I" Apartment House District and an "A-Y Apartment House District to a "B-1" Neighborhood Business District for a retail shopping center. · The subject property consists of 39 acres and is undeveloped. The applicant proposes to construct a four (4) building shopping complex. Such buildings will range from 4,000 to 20,000 square feel with a total shopping area of approximately 148,500 square feet. The construction date for this project has not been identified. · Hours of operation are planned from 8am to 6pm, at a minimum, seven (7) days a week. This development is expected to employ approximately 200 persons. · The "B-1" Distnct offers various retail, office and restaurant uses. Bars, lounges, taverns and auto repair lIses are not allowed. · Development of thIS property with commercial uses could generate approximately 5,920 vehIcle trip ends per day. The subject property is located along Saratoga Boulevard, an artenal roadway that is designed to accommodate large volumes of traffic. Secondary access is provided along Cimarron Boulevard, a rural arterial. Traffic generated from this project would have direct access to the arterial roadways without traversing residential neighborhoods to the north, south. east or west. Dunbarton Oaks, a designated collector, when extended through the property will provide additional access and internal neighborhood connectivity to the proposed shopping center · The req uested "B-1" District is an extension of the "B-1" District to the west and offers a lower commercial density designation than the "B-4" District to the east. The \genda t-knhiiandum 'ase No. '1401,-1)6 ,(iP Mc(rciess. 'uan t\1cJla dnd Fmlllu-Clmanon UP CiU T1Ill Clowel i "age 2 'omprehenslve Plan Elements can generally be supportive of the requested "B- I" District Since the subject property has direct access to two arterials. Applicant's Position: The applIcant 1S In agreement with recommendation. Notification: Of the forty (40) notices mal led to the surrounding property owners, four (4) were returned In favor and one (1) was returned in oppositIon. The 20% rule is not invoked. This case is considered non-controversial. but may involve discussion from the adjacent residents in an effort to obtain detail development plans from the applicant. J~ut1~ r-JrJ,Uth Actmg Director of Development Services \lGIFGl\lal" Attachments: 11 70nIng Report 2! Plannmg CommlsslOlI MInutes 14/ ]ll()6) . i ( lrd mance i iPLN-DlR\S I IA RED\Gai I , W( IRD,AGENDMEM\20i)6\Apri!\11406-06 AGFNDAMEMO.doc CITY COUNCIL ZONING REPORT Case No. 0406-0h Planning Commission Hearing Date: April 19, 2006 ~ l: - .S: = ";j Q. 5 bil._ ._ Q) I. Q.. ~ ;;; I Q., Q) ..... 0 Applicant Ci P, I\lcCreless, Juan Mejia and Encmo-Cimanon GP c/o Tim Clower Owner Lawrence and Hanna Starr, Monica R, Mejia and EncIno-Cimanon GP c/o Tim Clower Agent: The Clower Company. fim Clower Legal Description/Location: Bemg 39 acres out of Lots 6, 7, 8, 9 and 10 Section 11, Flour Bluff Dnve and Encinal Faml and Garden Tracts. located 375 feet southwest of the intersection ul Sar atoga Boule\ ard and Cimamm Boulevard. ~~ = Q) .- = = a" i:> Q) ~~ ! From: "R-IB" One-familv Dv,ellmg DistrIct. "A-I" Apartment House District and "A-2" \partment House Distnct To: "B-1 " NeIghborhood Bus1t1es.~ Distnct .\rea:N acres Purpose of Request: RetaIl shoppmg center '" Q) '" ......, ~ 'C = C':l .... 'C = C':l bil = .- = o r-..; OIl .S - '" ";;; ~ \'i~~ ~R:lIr'-on~f=t D';']G~'nd~~~~~:;:I'::Ii i Dlstnd, ,. \~ I" Apartme::l I I House DI'-.tnct and "A.2 i _ -4 Apartment House DIstnct ~__ ~ ___ Vnrth I "R-I B"/PI ill One-famIlY I 0\\ -denSIty resIdentl ~ D\\ ell mg District \\ Ith a medIcal offices and Planned t 'nit Development hospItal and "AB" ProfeSSIOnal Onlce DIstrIct - \lIuth "R-I (~ne-famih I:h\ ell~ngivacant land-u--- i DIstrIct and "A-I;\" -4 Apartment House Dlstrl~l Fast I "B-4" General Busmess ~ DIstrict -W;,;, - i ~-IB~>rle-fumIly- I Dwellmg District and "B-1" NeIghborhood Busmess DIstrict i . -~._-- .---....--- i Apartments and fast fo restaurant Low-density residentl and undeveloped land se i Future Land Use I ! Medium-density ! residential and commercial at Low-density residential, commercial and semi- public uses Low and medium density I I residential od Commercial al Low-medium density residential I ._- I "ning R'"P"li ,'ase No 'I41J(,-Oh (Mc( relcss, \-leja. EnctJ1o-(llllarron co ('lower) Page 2 ~ '" \J'ea Development Plan: Southslue - The future land use map reconunends medium-density c..= co:: 0 I cSldcntlal i1l1d commercIal lhm C\ er. due to the prot)ert\.' location along arterials, a modification ~~ t ~ '" to the futurt' land lIse map could he' made to c.,Upporl a low-density conunercial designation. ~ ] Map No. i)4,~03:' and ()4~i)~3 ; ~ > Zoning Violation~ None · rht applIcant has rellucsted a change of zomng from a "R-IB" One-family Dwelling District an ,. \-1" Apartment House District and an "A-2" Apartment House District to a "R- I" Neighborhood Business District for a retail shopping :eme! · rhe subject proper!) consists of 39 acres and IS undeveloped. The applicant proposes to construct a four (4) building shopping complex. Such buildings will range from 4.000 10 ] 20,000 square feet with a total shopping area of appro x imately 14X.5()() square feet The construction date for this project has not heen 1<lenl tiied ,. <<I e e = "JJ '" ~ co:: .... 00 -l< . Hours of 'lperatioll are planned ham 8am to 6pm. at a minimum, seven (7) days a veek Employment for this development is expected around 200 persons. . fhe "B-1 Dlstricl otters vanous retail. ot1ice and restaurant uses. Bars, lounges, la\ erns and auto repaIr uses are not allo\ved . Development ot thIS property with commercial uses could generate approximately 5.920 vehicle trip ends per day. The subject property is located along Saratoga Boulevard, an arterial roadway that is designed to accommodate large volumes or traffic. Secondary access is provided along Cimarron Boule\arc. a rural artena! Trame generated from this project would have direct ,.lCCeSS to lhe artenal rOiHhvays \vithout traversmg residential neighborhoods to the north. ,Oll tho cast or \\ e51 · The rcq uested "'B-1" DIstrict is an extension of the "B-1" District to the west and litTers ,J kwer commercial density designation than the "B-4" District to the east. The Comprehensive Plan Elements can generally be supportive of the requested '"8- J" District Slllce the ,-ubject property has direct access to two arterials. ~ o ~ SIred fype Paved Section Volume 2001 21,700 a.d. t. Silratoga Boule\an ~ Artenal 120-foot right-of-way with a I OO-foot back-to-back : paved section. -122' of pavement with side I ditches 8.790 a.d.t. - ~ ~ .. .... - Clmarroll Rural al1erial Zonmg Repurl Case No 04U6-0h (McCreless, \1eja, EnC1I10-Cmlarron c/o Clower) Page 3 "J .. = ~ 3 (he subject property IS not planed rJ'J. .. = t; ~ = I he requested "B I" DIstnct IS an extensIOn the "B-1" Distnct to the west. sa ~ - sa ; sa ='0 QU = o .- - ~ -e .... = ~ ~ \pproval ofthe "B-1" NeIghborhood Business District. rJ1 '" 5 o ~ ~ = o =; Cti.~ .;:: = '" ... '2 ~ ~ = 5 5 -\pproval ()1' the" B-1" NeIghborhood Busmess DistrIct. :: ~ 5 u 8 ~ " t;-e = ~ ~ ~ S .- S ~ o ~ r \ " ~ Number ofNotlce'- Mailed ~avOI -! OppositIon I I -'\s olMay':; 2006 ..f() \ttachment Zoning Map I,PLN-omSliARED\(,-\1l WORO\i JNRP rS\2!i06\Apfll ('C0406-06RPPORTdoc B~t ~, f1-.t, ";:'1 ~:, , I ~~~0~~ t ^ > ~~1D~ ''r . >~1C, ~~~ ""I^' 7cfL ~ 4 I ~.e!fi ' O.'l " '- ""I ~.~,.,.//'~O:" ./~Y , i--Z.. - OI! ~ <[0 ~. ~.- ,,~", ~/" '/'~~':::-(' ,~/i. ~/~i' /~'," ,- - ,-,: .-:/-/:~ !, :~ .~~~ '.' .'"~7J' ' JI,,' , . ',:: ~'.,. ~-z. '.^,' f~!" -1-",". , , ,- '4,~ nf ~" ~. :' 'I >> />> ~-%--: ,,7~ '_ ~--j 10;;, Y~"---,,,-'~' ;--. -', ":1 ",' I ~,' .~"',~ ~i10 ~ "..~ . l .,!--, , I$;. ~ I~/ !,'" . ~!l~:'''"", ~ :.,!f I 'J ,/ ''-y'' f4i'~r ;'l ,,::._/~l1;' ,"-.~r~,;,-'~ I~- _ .-- ~ ",~'-r-~b--"/ - ,~. '%t('-. ---.." "N, ......,> f-_.: ALEX5-APRIL-03-06 e A\ BE ",~~JQ_ ~1(Q;4Qa~Qa I NOT:ECB M~ I f ,,~ ,. arm Rural Olslri,: 1 RE R..tdem6a1 Estilt. OiaUict RA One Famhy Owefling Ol.trlcl R:.u, One F""y O'W.lIi~ Ol.tnet "-lEi OM FMnh)' DvrellinQ OJ.tricl R -1t OM F....I~ o..'Un~ Ot.tric::t 'I: Hi T! .....nhouu Dw.lh'{l Oijllrl( e, t Neighborttooc:l 6ualn... DIstrict B.i.A Neighborhood Buain... District B<2A Barrier I.~nd 8u..n.... DI.tricl I..:! L1ghllnduolrlol District 'C Manufactured HOITI. Subdiv,.,Of' Oi.ule1 8.2 Bay1ron1 BUlin... Oi.trk:t BO Corpus C hri.ti Be.ch D..ign District 1-3 H..vy tndu..rt.1 Ot.tric:1 SP Spect.. Permit PUO Planned Unl1 o.v.topmen' He HI.tor1cll..cultural L..ndmlrk Pr....rv.tlon Ri MAUple Dwelling Di.lrk' I.. Tr-il"'.' Trall.r Part. D,_MHot 18 M.Jl:nufIClur.d HOlT>_ P.r_ [hstn(:f City 0/ c.p.o ChrloU, n A. Ap.rtmenl Hous. Olstrkt A.!. Ap.r1menl Hou.. Ulstr1c: B~ Bu.in... District N A W"'~"E T S 250 500 Feel e-4 Gen.r.1 Bu.ln... ol.triel .111,,' I"; ~;j :'-. . '-"-=-.' . A.; Apartment Hou.. eH.lrkt B~ Primary Bualne.. O,alrict ,6.1 Apa~i.Touri.1 Oi.1ric.! 8"" Primary BUlin... Cor. m.trict 1.1 limt'ed fnaustrial Oia'rkt AB Prot...k>Nt Office Ol.tnel ~ .............. I<<vICn e o MINUTES Itl:( ;l1LAR PLANNING COMMISSION MEETING Council Chambers- City Hall Wednesday - April 19, 2006 a, 1)4011-06 iiP V1c('rt'le~s, Juan Mejia and El1c1I10-( 'lInarron GP, c/o Tim Clower: From a 'R- B" One-family Dwelling District, "A-I" Apartment House District, and an A-2" Apartment House District to a "B-1" Neighborhood Business District Flour Bluff and Encmal Fann and Garden Tracts, Section 11, Lots 6, 7, 8, 9 and 0, i ~)cated r 5 ft'et southwest of the intersection of Saratoga Boulevard and i 'Imarron Boulevard I an ce (Joode-Macon presented tht' ahove case WJth a shde presentation showing the subject property md surrnunJing area Tilt' suhJect propert) consJsting of 39 acres IS located at the intersection of Saratoga cmd west 01 l'imarron Boule' ard, whereb\ ,1 "B-1" Neighborhood Business District for the purpose of Jeve]opll1g a retail shoppmg center IS '-equested, The surrounding areas Include low-density residential and -,ommeruai 'Nith \aeant land to the south The proposed development \,,111 be comprised of four (4) buildings is a shoPPll1g complex J(lr a total shoppmg area of approxnuately 148,500 square feet. The hours of ,)peration \\ ill be between 8:110 a,Ill.. tn 6:00 pm" seven days a week \VJth various restaurant and retail uses, !'here w:ll ill' no bars. repan ,mto llse~ allowed In thl s dIStTlCt. StaW s recommends is approval of a "B-1 " "-eighborhpod BUSiness I hst"let in ,ms\\ er to ( ommhsioner Ii uerla S LjuestJOn, M s Goode-Macon stated that the street frontage will be )/l Sarat()ga Boulevard \\ Ith, single access pOlllt located on Cimarron Boulevard, Sign regulations will fall in 'he "three' \' or morl' tenant: ' group f'uh hc heanng was opened Margie MayfIeld. 59:21 Harvest HIlI. Bent Tree Subdivision, Corpus Christi, Texas 78414 stated she resided across the street trom the subject property and has concern about the location of the entry and ,'Xlt access points along Saraloga BOUlevard Mary Frances {emente stated that the dnveway on Saratoga Boulevard will be determined by fxDOT and, per the plattmg urdinance. the local access wIll be on Dunbar Oaks, Traffic Engineering will "evieyv the driveways to he Sd out With T:-,;[)()T givmg the fInal approval. (Jeorge Clower, ~84(1 Brock, ( 'orpus Christl. Texas stated he was representing the applicant and s agreeable 10 the rcc~)mmendatJOn, Mav Layman, 5926 Ilan'est Hill, (',:)Q1US Chnstl, '1 exas stated she has resided in Bent Tree "";ubdivislOl1 tor eight (8) years and IS speakll1g on behalf of the neIghbors in Bent Tree Subdivision who do not believe the proposed development wIll be a posltive addition to the area, This area is not in need d a strip mail with additional retail and restaurant bUSiness, Traffic has gotten terrible and getting worse ,,'very day, Ihere have been lraffic accidents and there is a constant flow of traffic, We would like to the .lfea to be kept "as IS" With sll1gle famlly reSIdential rather than commerCIaL PubliC heanng was closed '1lOutes E ,CIf,l \pnl J 9, ~"Or Page 2 \10110n IVas made to ,lpprO\e the '8-1" Neighborhood Business District was made by ommis51oner Salazar and sed)nded bv Cllll1nl1ssioner Braselton. Mr Uunmng stated the "8-1 ,. '\ielghborhood Busmess D1Strlct would be much more compatible lor this area then the "R-4" Gl~'neral Business District that usually occurs along arterials. In answer t,) ( omrms~lOner Puslev " guestlOn. \1r (junl1lng stated convenience stores with tueling statIOns are allu\VnL In answer to Comrms:oioner Huerta" Ljuestion, Ms. Temente stated that the adjacent drainage travels along the west Side under ground paralleling Saratoga, then turns north along Cimarron into the Wooldridge Staples ditch, The Department of Engineenng has provided an amended drainage master plan for this area with Master ('hannel r to relteve some orthe dramage. The subdivision platting ordinance requirement for each development reqUIres handling the fin' (5) year deslgn flow. The overflow protection needed \\ ill he handled by the developers' engmeer Motion passed unaml11ous]:r. Page 1 of 3 AN ORDINANCE AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY G.P. MCCRELESS, JUAN MEJIA AND ENCINO-CIMARRON G.P. CIO TIM CLOWER, BY CHANGING THE ZONING MAP IN REFERENCE TO 39 ACRES OUT OF LOTS 6, 7, 8, 9 AND 10 SECTION 11, FLOUR BLUFF AND ENCINAL FARM AND GARDEN TRACTS, FROM "R-1B" ONE-FAMILY DWELLING DISTRICT, "A-1" APARTMENT HOUSE DISTRICT AND "A-2" APARTMENT HOUSE DISTRICT TO "B-1" NEIGHBORHOOD BUSINESS DISTRICT; AMENDING THE COMPREHENSIVE PLAN TO ACCOUNT FOR ANY DEVIATIONS FROM THE EXISTING COMPREHENSIVE PLAN; PROVIDING A REPEALER CLAUSE; PROVIDING A PENALTY CLAUSE; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the application of GP. McCreless, Juan Mejia and Encino-Cimarron G.P. C/O Tim Clower, for amendment to the City of Corpus Christi Zoning Ordinance and Zoning Map: WHEREAS, with proper notice to the public, public hearings were held on Wednesday, ,A.priI19. 2006, during a meeting of the Planning Commission, and on Tuesday, May 30, 2006, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christ!. during which all interested persons were allowed to appear and be heard and WHEREAS, the City Council has determined that this amendment would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Zoning Ordinance of the City of Corpus Christi, Texas, is amended by changing the zoning on 39 acres out of Lots 6, 7, 8, 9 and 10 Section 11, Flour Bluff and Encinal Farm and Garden Tracts, located 375 feet southwest of the intersection of Saratoga Boulevard and Cimarron Boulevard, from "R-1 B" One-family Dwelling District, "A-1" Apartment House District and "A-2" Apartment House District to "B-1" Neighborhood Business District (Map 043032 / 043033) (Exhibit) SECTION 2. That the official Zoning Map of the City of Corpus Christi, Texas, is amended to reflect the amendment to the Zoning Ordinance made by Section 1 of this ordinance SECTION 3. That the Zoning Ordinance and Zoning Map of the City of Corpus Christi, Texas, approved on the 27th day of August, 1937. as amended from time to time, f-j 'LEG-DIR\garvwslgarywslagenda\2006105-30\0406-06 GP McCreless Regulargws060522 doc Page 2 of 3 except as changed by this ordinance and any other ordinances adopted on this date, remain In full force and effect SECTION 4. That to the extent that this amendment to the Zoning Ordinance represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the Zoning Ordinance, as amended by this ordinance. SECTION 5. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed. SECTION 6. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section 1-6 of the City Code of Ordinances. SECTION 7. That pUblication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 8. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 30th day of May. 2006 ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett. Mayor. City of Corpus Christi APPROVED: May 22.2006 ~- Assistant City Attorney For City Attorney H.. LEG-DIR\garvws\garyws\agenda\2006\05-30\0406_06 GP McCreless Regulargws060522 doc Page 3 of 3 Corpus Christi. Texas __ day of_______, 2006 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings. I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfu lIy, Respectfully, Henry Garrett Mayor, City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney John Marez Jerry Garcia William Kelly Rex A. Kinnison Melody Cooper Jesse Noyola Mark Scott HILEG-DIRIgarywslgarywslagendaI2006\05-3010406-06 GP McCreless Regulargws060522.doc ~~_l" @ SCALE ft = too' ," 44~~2~~. :L?": ~ \ ~ ,'\ A~~C \ ""'"'~'S ~_. ~v.,.' ",,- ',- \' ~ .....,C4j r-"" 1: '...~ N \..- -" J:--r\_}~ , ., ... ~ ~<'r- ~~~~ , '}_t:;> ". (>- ~':'J ~(). ~Sf .."-..... ,_~I ~ , '- ."'--. -- . INr~RS7: (1(0, Vv i./ A.rE: 31 A.F(lF:Sj '" P.2 .- ---,- ,~ --.~ -.. .' P\"~[ ~ c::; c. . I C, '>. :?0 i ~ II 8 I ] i I, E I J 5 11 4 (J":l I I ! + + ' + . J2 11 ---+- -' + tt.. +-+ , .;; " 4 "I - ~ I i :.J I l;:, / <:: ,! '" I 1('\ I - \ Il- ~ =-::. ~. r""' "__ 881 QOT32"E , ; ,c- i I ~ i J:. I '<1 I I:, I:=... ~\.\ \ \'. I - -+- + --f-- -L: Co, 1 (;. ~. '?' ~ '~1' I ~ / . . \,Qut.-I '"'ItSS ,.. -, ---,---; , 1"~ G~ ?I) 1.:. \f~: I (5 I 7 I 8 I CI ; - -+rJI--'. t: I I , I I ~J GRAND TETON DF; ----,-'. 4! 5 I h I 7 ( . f 1-- I - I s~ be h .;, ! J 0 I I 1 555.50' 10.205 AC TRACT REMAIN "R-1B" i------, I' i -- i c:.r::: 23 . ,) , IL-L. 2G 3Cl 25 (f) z ~_ Q' en en w en <I J 40 3G 38 .J[JL/ ANN A OR, - 8'?:._ ACt' !...A5!.4IEN7 ~ s 7aD58'50" E 449.08' ~ ------ -- - .....--- - -- - ----- ""- PRoPOSED B.1 ZONING FOFl1.975 AC TRACT W/SP€CIAL PERMIT FOR HOTEL.' MOTEL USE N 6B6~'08" W 437.15' 1..0"1 ~S\A'tr:.S R I vE.R\J I EYi Pc.. \ qOW) &0. VOL. N C. \ . M.R. .' s: 1\ ~ fL-- _ O' i:: ~ i I ,..; tp I . E. HANS\..E\!~ I M CD . ]CKl;:...lN r. 0"-' Nol\'\ '.'555. p",. I U) v 0'.- ' 0 t\. N. t . i . I', I EXISTING B.1 ZONING FOR 2.5 AC TRACT W/sPECIAL PERMIT FOR .... HOTEL I MOTEL USE c:; (ZONING CASE No. Z1105.07) ~ N P.O.8, C cue IJ~ OSO{-02 N 64029'43ft w-/ 11 7.72' L LEGAL DESCRIPTION ~, ~ ,GutierreI FIELD NOTES to describe the boundary of a 1.975 acre ~ract ~R ~. LoR of land being a portion of a 1468 acre tract of land described 5656 South StGOlet;, "Suite c30 . d '0 t JW G Corpus Chrtstl. ielCos 78411 in deed (0 Arnba Development, LLC as recor ed In acumen \!oJ . Phon.. <3&1> 991-8550 fax 993-7S69 # 2005024464, Official Records. Nueces County, Texas and "/'I~1l1 c....{j@crgpLcOl'l being out ofthe B.S. & F SlJfV@Y 419, Abstract 570, Nueces DiB; S/3l/2lIDe County, TeKas. ~~..;1. ...::\H:'-:: ~-," 1... f ~J 3 -r.-t 1: FIELD NOTES for a 14.002 ACRES orLAND Field Notes for all oftbat strip of 14.002 acres of land. reserved and not conveyed in Deed from ArtImr Starr and wife, Connie May Starr to R.E. Thunnan dated Janwuy 20, 1947. recorded in Volume 356, Page 242 of the Deed Records ofNueces County, Texas and referred to in said Deed as being a tract oflaDd 435.60 feet by 1,400.00 feet oftbe northeutemend of Lots 6, 7, ud 8, Section 11, Flour Bluff and Encinal Farm and Garden Tracts, according to map thereof recorded in Volume A, Paps 41-43 of the Map RecordsofNuec.es County, Texas said 14.002 acres tract being more fully described by metes and bounds as follows: BEGINNING at a point (no m.onumeutation found or set) on the sout.bwest boundary ofSeratoga Boulevard, a 120.00 foot wide public roadway for tbe north comer of Lot 3, Block 1, Brighton Village. Unit 5, B map 0 which is recorded in Volume 58, Page 123 of the Map Records of Nueces County, Texas for the east corner of this tract; THENCE South 28D 55' 41" West, (Deed=Soutb 280 58' 05" West) along the northwest boundary of said Lot 3, at a distance of 0.11 fuel pas a found 518" iron rod, in all a total distance of 435.26 feet (Deed=435.00 feet) to a 5/8" iron rod found for the south comer of'this tract; THENCE North 61Q 03' 06" West, at a distance of 1399.74 feet pass a found 5/8" iron rod, in all a distance of 1399.96 feet (l)e:ecF'l400.00 feet) for the west comer oftms tract;" THENCE North 280 56' 24' East, a distan~ of 436.11 (Deed=435.60 feet) to a 5/8" iron rod with a red plastic alp stamped "Urban Enge C.C. TX" found on the southwest boundaIy of said Saratoga Boulevard for the north comer of the this tract; nmNCE South 610 01' 00" East, along the southwest boundary ofsaid Saratoga Boulevard; a distance of 1399.87 feet (Deed=1400.00 feet) to the POINT OF BEGINNING. C are N~ OLl 06 -06 dl::Jb b",' k V4 . e J'nd. 2: FIELD N'OTES for a 19.648 ACRES of LAND ALL that certain tract or parcel of land situated in Nueces Count. Texas, same lying within the Corporate City Limits of Corpus Christi. Texas same being out of Lots 6, 7. S. 9, and 10, Seaion 11, Flour Bluff and Encinal Farm and Garden Tracts as recorded in Volume A. Pages 41-43 of the Map ~ds ofNueces County, Texas same being out oftbe 65.09 acre tract as recorded in Volume 2013, Page 524 of the Deed Records ofNueces County. Texas, and descn'bed by metes and boulMis as follows, to-wit: BEGINNING at a 5/8" iron rod found for the East corner, same lying in the Northwest right-of- way margin of CiJnarron Road. same being the South comer of a 14.10 acre tract as recorded in Document #862914 ofthe Warranty Deed Records ofNueces Coumy, Texas same lying SOUTH 28057' 30" WEST 1,290_67 feet and NORTH 61000' 00" WEST 40.00 feet from a nail and cap found at the intersection of the centerline of Saratoga Boulevard and said Cimarron Road~ THBNCE along said Northwest right-of-way margin ofCimarron Road, SOUTH 280571 30ft WEST 108 32 feet to a 5/8" iron rod set for the South comer, same being the East corner of a t 9.76 acre tract as recorded in. Volume 2108, Page 985 of the Deed Records ofNueces COWlty, 'feus THENCE along the Northeast boundary line of the said 19.76 acre tract, NORm 610 ox 30" WEST 1,100.00 feet to a 5/8" rod set for a West comer, same being an interior comer of said 19.76 acre tract; THENCE, along Southeast boundary line of the said 19_76 acre tract, NORTH 280 57' 30'1 EAST 313_.99 feet to a 5/8" iron rod set for an interior comer. same being an East comer of said 19.76 acre tract; THENCE, continuing along the Northeastboundaty line of the said 19.76 acre tract, NORTH 610 04' 55" WEST 84515 feet to the 5/8" iron rod set for the West comer, same being the North comer of said 1976 acre tract. same lying in-the common boundary line of said Lot 6 and-Lot S. Section II of said Hour Bluff and Encinal Farm and Garden Tracts; THENCE, along said common boundary line Lots 6 and 5, NORlH 28055' OS" EAST 590.00 feet to a 518" iron rod set for the North comer, same being the West comer of a 14.00 acre tract conveyed to R.E. Thurman as recorded in Volwne 245. Page 222 of the Deed Records ofNueces County. Texas; 'fHENCE, along the Southwest boundary line of said R.E. Thunnan14.00 acre tract. SOUTH 610 02' 30" EAST 1,01321 feet to a 5/8" iron rod set for an East corner~ same being the North comer fa 5.17 acre tract as recorded in Volume 2238. Page 804 of the Deed Records ofNueces County~ T C)taS; Case, fJ2 o 1..{f)6 - 0" P.t; . e THENCE, along the Northwest boundary line of said 5.17 acre tract, SOUTH 280 55' 05" WEST 55929 feet to a 5/8" iron rod set for an interior comer, same being the West comer ofsaid 5.17 acre tract~ THENCE, along the Southwest boundary line of said 5 17 acre tract, SOUTH 610 04' 55 II EAST 3487 feet to 8 5/8" iron rod set, THENCE, continuing along said Southwest boundary line, a curve to the right with a central angle of 210 04' 59 ", a radius of 836. 16 feet, a tangent of ] 55.60 feet and a length of arc of 30761 feet to a 5/8" iron rod set; THENCE, continuing along said Southwest boundary line, SOUTH 400 00' 00" EAST 54.83 feet to a 518<1 iron rod set for an East comer, same being the South corner of said 5.17 acre tract, same lying in the Northwest boundary line of said 14. 10 acre tract~ THENCE, along said Northwest boundary line of the 14,10 acre tract, SOUTH 28055' OS" WEST. passing wough a 5/8" iron rod found at 1216 feet, a total distance of32.]6 feet to a 5/8 inch iron rod set for a corner, same being the West comer of said 14.10 acre tract~ THENCE, along the Southwest boundary line of said 14.10 acre tract, SOUTH 400 00' 00" EAST 246.45 feet to a 5/8" iron rod found; THENCE, continuing along said Southwest boundary line of said 14.10 acre tract. a curve to the left with a central angle of 200 59' 59", a radius of 600. 00 feet. a tangent of 111.20 feet and a length of arc 219.91 feet to a 5/8" iron fod found; THENCE, continuing along said Southwest boundary tine of said 14.10 acre tract. SOUIH 610 00' 00" EAST 100.00 feet to the POINT OF BEGINNING containing 19.648 acres ofland. Case JJ~ 0'1 OG -- 06" 19 AGENDA MEMORANDUM PUBLIC HEARING.- ZONING (City ('ouncil ActIOn Date: 5/30/06) Case No. 0406-07-Alan Anderson: A zonmg change from an "1-2" Light Industrial District to an "1-3" Heavy [ndustrJaI District. The property being .0121 acres out of 4.85 acres out of Lot 8, Block B, Ocker Addition, located at 1111 Southern M mera[s Road and approximately 450 feet north of Sedwick Road. Plannin2: Commission and Staff's Recommendation (4/19/06): Dental of the "1-3" Heavy Industrial District and in heu thereof. approval of a Special Permit for the above-ground fuel tank per the metes and bounds descriptIon Reouested Council Action: Denial of the '[-3" Heavy lndustnal District and in lieu thereof, approval ofa Special Permit for the above-ground fuel tank per the metes and bounds description. Purpose of ReQuest r 0 expand the use of the eXIsting truckmg yard to mclude an above ground fuel tank used in the operatlOn of the truckmg yard Summary: . Appltcant IS requesting a change ofzonmg from "[-1" Light Industrial District to "1-3" Heavy Industnal Distnct to add an above ground fuel storage tank to be used in conjunction with the operal Ion of the trucking yard currently operating out of the subject parcel. . The lI1stallation of the above ground fuel tank will reqUIre Zoning Board of Adjustment and Fire Marshall approval pnor to issuance of the permit . The proposed tank I~ a double-walled steel above ground fuel storage tank and will hold approximately 12.000 gallons. . Per the manufacturer'sspecificatlOns. the tank has a 2-hour fire rating, whereby the structural mtegrlty of the tank will not be compromised for at least 2 hours. In addition, the secondary contamment UTIlt wi II provide 110% of the capacity of the internal (primary) tank. Ap8Ucant's Position: The applicant IS in agreement With recommendation. N"otification: Of the seven C) notices mailed to the surrounding property owners, two (2) were returned m favor and zero (0) was returned In opposition. The 2001., rule is not invoked. This case is considered noncontroversial. /<<vll?! 4--~y' Michael N. GJnning, AICP Acting Director of Development Servic MG/FGM/als Attachments: I ) Zoning Report , ) Planning C ommissiol1 Minutes (4il9/06) \ ) Ordmance i I .PLN-DIRSIIAREIJ\G'\11 WURD\A\jENDMFM\1006\Apnl\0406-lI7 A(iENDAMEM(J.doc CITY COUNCIL ZONING REPORT Case N 0._ _ iJ40()-(l; Planning Commission Hearing Date: April 19,2006 Cod = - .S: =-... .~ ~.~ Q.~ ~ Q. ~ ~ Q Applicant Alan Anderson Owner Star-lei ServIce.', 1m Agent: Bnght I ruck Leasmg Legal Description/Location I 01\ Block R. Ocker Addition .... 'Il ~ = ~ ~ a: l)IJ = ... = e> N 1-;''' I ight IndustrIal [llstrict ,[- ., Heavy Industnal DistrIct () l~' I a,Tes out of 4_8') acres out of Lot 8, Block B, Ocker Addition, Located at 1111 :-'outhem Minerals Road, and apprnxnnately 450 feet north of Sedwick Road, Purpose of Request: To expand the use of the existmg trucking yard to include an above ground 'Leilani used In Ihe operation of the truckIng yard_ From ') 0 Area 'Il ~ 'Il ~ "0 = ell ..J "0 = ell l)IJ = '= e> N l)IJ = ... ... r7i ... ilOl ~ Zo ~11~ E ~ist!E:g.!-lll1~_l:T se '1-2" [ Ighl IndustrIal Dlstnct "1-2" LIght Industrial Dlstnct ~+.- -- .- -.-...-..-.. -...--.------ :\'nrth i "1-2" Light Industrial District "1-2" LIght Industrial i and'l- ," lIea",,- [ndustna] I DIstTlct I ' I I Districl j -. ---- .---.- -- .- -----t-;-;-;----:----------- South! "T-2" I Ighl [ndustnal DistrIct . "1-1" Light Industrial DistrIct - ---~-------------_._-- '1-2" [ ighl Industnal Distnct "1-2" LIght Industrial Dlstnct -- 11 est ']-2' 1 ,ghl Industrwl Dlstnct "[-2" LIght Industrial Dlstnct _\11, ' - Eilst ~ '" Q.= ~ 0 ~~ ~- ~ .S: Q> < ,-----.--- -- Future Land Use . "1-2" Light Industrial District "1-2" Light Industrial District "1-2" Light Industrial District .-- "1-2" Light Industrial District _.-~- "1-2" Light Industrial District _....--- -- Area Development Plan A I rpllnPort!V 10let Map No.: O:i4045 Zoning Violations None /oning RepuJ t (ase No 0406-0" (.\ndersl'n, i\ Ian) Page ;> . ApplIcant IS requestmg a change of zonmg from "[-2" Light Industrial District to "1-3" Heavy Industrial Distnct to add an above ground fuel storage tank to be used in conjunction With the operation of the truckmg yard currently operatmg out of the subject parcel. c. co: 13 13 = IJ) '" e: co= ..- IJ) . f'he InstallatIOn ofthl' abll\c ground fuel tank will reqUire Zoning Board of Adjustment and FIre f\larshaij approval pllor to issuance of the permit. . rhe proposed tank IS d doubk-wa11ed steel above groLlnd fuel storage tank and will hold approxImately J 2.000 gallons . Per the manufacturer's speL'Ifications. the tank has a 2-hour fire rating, whereby the structura I integrity of the tank wi11 not be compromised for at least 2 hours. In addition, the secondary contamment Ulll] wi11 prOVIde J ] 0% of the capacity of the internal (primary) ta Ilk ~ ~, -..' ~ ..... v II) h ..... r:r Street r- d Section Volume -. (2001) w/54' back to 1460 a.d.t. section 95' ROW NA to back paved --. -- Type Pave - --...- Southern Minerals Road ~~(! Leopa~d1treel _._____ Sedwick Road +- . , Secondary Arterial .-----.--.---- Minor Arterial- t Jndeveloped + .- . ]OO'ROW i back paved I . d . ProJecte I wiM' back I . ~t;~tlon __ I I _1-_______ ______ './:J ~ ~ 0:..... [/) rhe suhject property is platted E lfJ !~ o.~ II) 0 QU Prior to final mstallation, the applicant must receive approval from the Zoning Board of Adjustment and the Fire Marshall. ,- .... .S ..... c::l "d ;...... :::: ~ ;8 ::/l t::: S o o 1) e::: Denial of the "1-:1" Heavy Industrial District and in lieu thereof, approval of a Special Permit for the above-ground fuel tank per the metes and hounds description. i unmg Repon aseNo, 1)4()h-07 iAndel\OI' Aim) Page 3 = '= = ',c OJ).i ~ .5 ~ = c .... ~ E I a ~ '= a I..) 8 ~ ~ Denial of the "(-3' Heavy Industrial District and in lieu thereof, approval of a Special PermIt f(Jr the above-ground fuel tank per the metes and bounds description. '" -"C = ~ ~ ~ e ';S e (j o ~ -..;et: Number of NotIces \1alled: - FJvor 2 OppOSItIOn: 4 /\s of '\1av s, 20(6) .\ttachments: Zonmg Map IPLN-DIR \H\I<EP (i,\ Ii \\01\ I},,/< 'NRPT'-;20((>,..'.J'1\ iJ l( '040(,-I)'ANIH RS< I'.; IJ()(' I i I I I lEi . , .~;f'1 '!il!..~",~_.,,_...-' ~I':...:.i:... ~~ I~3 t HWY U I 1~2 SEDWICK ROA_D ALExa-APRIL-03-06 ~48~ ~Q4Q~~Q7 r _R Farm Rural Dlstn'_1 R.Tr. fownhouse Dwelling Dis!rk t B' Neighborhood Business District e -! A Neighborhood Business District e.2A Barrier Island Business District HE Residenu.l Estal6 District R~2 Multiple Dwelling Districl RA One Family Dwelhng District R ~ A. One Family DwellIng DistrJct T.1A ravel Trailer PM'" OiSlric 'T.1 e Manufactured Home Pdrk District 8-;;' B;lyfronl Busines5 District oC..! - 8 OM F amn)' uwelimg District r.1 C Manufactured H,)me S..b(1;V;\."~lfl Dislricl BL Corpus Christi Beach Design District ;:;c.<c One Family Dwelling District A~1 A.partment House DistrICt A.1A Apartment House Distrkl B.:I Business Distrfct City of COryKls ChristL TX 8-4 General Business District A.2 t..partment House District ...........:!I.... ,L' , ,.i:' 1.1.' . .. I . "'_ B-: Primary Business District AT !...partmenl-Tour:st DistriCl AS ~'rofes5IOnal OHlce Distrill B..f:i Primary Business Core District j. j limited Industrial District D.~r1rrM1.OI o.lMlopmMll S.rvQI -. CJ'J o C -i J: m :;0 z s: z m ;;:0 > j" CJ'J ;;:0 o > o I -~ I ---I I I -----1 I I NOTI~B M4:P1 1.2 light Industrial District 1.3 Heavy Industrial District SP Special Permit PUD Planned Unit Development He Histo...ical..cultu...al landma...k Preservation o N ... W~ ~;fI:tj~ E .. S 150 300 I Feet MIN1ITES RE(,lJLAR PLANNING COMMISSION MEETING (ouncil Chambers- City Hall Wednesday - April 19, 2006 h ().W6 07 Alan Anderson. hom an "1-1" Light Industnal District to an "1-3" Heavy Industrial Distnct BemgO 121 acres nut of 4.85 acres out of Lot 8. Block B, Ocker Addition, locait'd at II [ Southern Minerals Road and approximately 450 feet north of Sed\\ ick Road S,h la Arispe presented the above case requestmg an "'1-3"' Heavy Industrial District located hetween 1 en pard Street and SedWick Road on Southern Minerals Road for the purpose of adding a 12.000 ga lIon above ground fuel tank tn the nperation of the existing trucking yard, subject to approval of the Fire !vlarshall. the 70nmg Board of Adjustment and a metes and bounds description. The ,>urroundmg existmg and futUll' land use recommends the property retain It'S "1.2" Light Industrial DIstrict deSIgnation Mrs. Anspe stated that there are \Cry few pockets of"I-3" Heavy Industrial District located in thiS area. fhe "[-3' Hea\y Industnal Distnct also allows sexually oriented business uses so it " ltnportant 10 IIlsurc whal he:lvy mdustnai uses are It1volved. Staff recommends, in lieu of an "1-3" Heavy Industnal Dlstnct. clppmval ofa Spt:Llal PenTIlt wlthm the "'1.1" Light Industrial District which tl lows the fuel tank and ensUl('S the "'1- \.. Ilea \ y lndustnal Dlstnc! does not expand. Staff has spoken to rhe applicanr and the appll.'an; IS agreeahle 10 Ihls recommendation !vllchael (iunl1lng stated that the SpeCial Permit IS site specific and once the fuel tank is removed, rhe SpeCIal Permit would he eliminated Mr. (funning stated his concern 10 place pocket locations of an I-V' HealY Industrial DIstrict in thiS area ( <lmmlSSlOner Pus ley stated that the I ulosa-Mldway Independent School District has a facility usl down lhe road from tht' subject property and encouraged Staff to he cognizant of the area and keep 'he school district mt()f[11ed 01 actiVity III thl5 area. PublIc heanng was opened. J D. Scheimer, General Manager of Bnght Truck Leasmg, 1111 So, Minerals Road, Corpus Christi, Texas stated he was in favor of the recommendatIOn made by Staff and that the subject business rents and leases commerewl trucks. PublIc heanng was closed Motl\)J1 for approval 01 a SpeCial PermIt subJecl to a metes and bounds description, approval of he Fire Marshall and approva i of the Zomng Board of Adjustment was made by Commissioner Zamora tnd seconded hy VIce-Chairman Garza. Motton passed unanimously Page 1 of 3 AN ORDINANCE AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY ALAN ANDERSON, BY CHANGING THE ZONING MAP IN REFERENCE TO .0121 ACRES OUT OF 4.85 ACRES OUT OF LOT 8, BLOCK B, OCKER ADDITION (CURRENTLY ZONED "1-2" LIGHT INDUSTRIAL DISTRICT) BY GRANTING A SPECIAL PERMIT FOR AN ABOVE GROUND FUEL STORAGE TANK PER THE METES AND BOUNDS DESCRIPTION; AMENDING THE COMPREHENSIVE PLAN TO ACCOUNT FOR ANY DEVIATIONS FROM THE EXISTING COMPREHENSIVE PLAN; PROVIDING A REPEALER CLAUSE; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the application of Alan Anderson, for amendment to the City of Corpus Christi Zoning Ordinance and Zoning Map; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, April 19, 2006, during a meeting of the Planning Commission, and on Tuesday, May 30, 2006, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi. during which all interested persons were allowed to appear and be heard: and WHEREAS, the City Council has determined that this amendment would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Zoning Ordinance of the City of Corpus Christi, Texas, is amended by changing the zoning on .0121 acres out of 4.85 acres out of Lot 8, Block B, Ocker Addition, located at 1111 Southern Minerals Road, and approximately 450 feet north of Sedwick Road, (currently zoned "1-2" Light Industrial District) by granting a Special Permit for an above ground fuel storage tank per the metes and bounds description (Map 054045) (Attachment) SECTION 2. That the official Zoning Map of the City of Corpus Christi, Texas, is amended to reflect the amendment to the Zoning Ordinance made by Section 1 of this ordinance SECTION 3. That the Zoning Ordinance and Zoning Map of the City of Corpus Christi, Texas, approved on the 27th day of August, 1937, as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remain in full force and effect. H \LEG-DIR\SharedIGarySlagendaI2oo6105-30\0406_07 AndersonAIlgws060524 doc Page 2 of 3 SECTION 4. That to the extent that this amendment to the Zoning Ordinance represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the Zoning Ordinance. as amended by this ordinance. SECTION 5. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed SECTION 6. That publication shall be made in the official pUblication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 7. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for Immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 30th day of May, 2006. ATTEST: CITY OF CORPUS CHRISTI Henry Garrett Mayor. City of Corpus Christi Armando Chapa City Secretary APPROVED: May 24. 2006 riIv G . Smith Assistant City Attorney For City Attorney H . \LE G-DIR\S ha red\GaryS\agenda\2006\05-30\0406-0 7 AndersonAltgws060524 .doc Page 3 of 3 Corpus ChristL Texas day of _____ __, 2006 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings. I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor, City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney Jerry Garcia John Marez WiUiam Kelly Jesse Noyola Rex Kinnison Melody Cooper Mark Scott ..., . \LE G-DIR \ga rywslgaryws lagendaI2006\05-30\0406-0 TAndersonAltgws06052 4 .doc - - STAll: Uf TEXAS COUN f'r OF Nl 'EeES FIELD NOTES FOR A 1500 FOOT BY 35.00 FOOT STORAGE TANK OUT OF A 4.85 ACRE TRACT OF LAND. KNOWN AS LOT 8. BLOCK B. OCKER ADDfTlON. RECORDED IN VOLUME 40, PAGES 79 & 80, MAP RECORDS Of NUECES COUNTY. TEXAS. AND BEING MORE PARTICULARY DESCRIBED BY METf'S AND BOUNDS AS FOLLOWS: COMMENCrNG AT A 5/8 INCH IRON ROD FOUND A T THE SOUTHEAST CORNER OF SAID LOT 8, BLOCK B. OCKER ADDITION AND ON THE WEST RIGHTOF-WA Y LINE OF SOUTHERN MINERIALS ROAD rHENCE. SOUTH 89 DEGREES 56 MINUTES 00 SECONDS WEST FOR A DISTANCE OF 270.00 FEET TO A 5/8 INCH IRON ROO SET ALONG THE SOUTH BOUNDARY LINE OF SAID LOT 8. BLOCK B, OCKER ADDITION THENCE NORTH 00 DEGREES 10 MINUTl:S 00 SECONDS BASI !-OR A DISTANCE OF 96.38 FEET TO A 5/8 .INCH IRON ROD SI:: r FOR HIE SOUTH WEST CORNER Of THIS TRACT AND BEING THE POrNT OF BEGINNING THENCE NORTH 00 DEGREES 10 MINUTES 00 SECONDS EAST FOR A DISTANCE OF 15.00 FEET TO A 5'8 INCH IRON ROD SET FOR THE NORTHWEST CORNER OF THIS TRACT THENCE SOliTH 89 DEGREES 50 MINUTES 00 SECONDS EASI FOR A DISTANCE OF 35.00 FEET TO A 5/8 INCH IRON ROD SET FOR THE NORTHEAST CORNER OF rHIS TRACT THENCE SOUTH 00 DEGRtES 10 MINUTES 00 SECONDS WEST FOR A DISTANCE OF 15.00 FEET TO A 5/8 INCH IRON R.OD SET FOR THE NORTHEAST CORNER. OF THIS TRACT: THENCE NORTH 89 DEGRI.ES 50 MINUTES 00 SECONDS WEST FOR A DISTANCE OF 15.00 FEET TO A 5/8 INCH IRON ROD SET FOR THE SOUTHWEST CORNER OF THIS TRACT AND POINT OF BEGINNING. / ~(tf7~ ?/Go/d~ 20 AGENDA MEMORANDUM PUBUC HEARING - ZONING (eitv ( ouncd ActIon Date: :'/30/(6) Case N(!.0506-01-Arriba Development, I"LC: A zoning change from a "R-IB" One-Family Dwelling District tll a "B-4"General Business District. The property being 1.975 acres out ofB. S. & F. Survey 419. -\bstrau :"70, Nuect'\ ( OUllty, T exa\ located at the northwest intersection of Interstate 37 frontage road and Session.... Road PI.uuine Commission and Staff's Recommendation (5/3/06): Demal of the "B-4" General Business District and. in lieu thereof. approval of a "B-1 /SP" Neighborhood Business District with a Special Permit for a one vear perIod that alkl\\s f()r ,: hotel or motel development Requested Council Action Demal of the "B-4" General Busmess DIstrict and. in lieu thereof. approval of a "B-lISP" Neighborhood Business DIstrIct With a SpecIal PermIt tor a one year period that allows for a hotel or motel development. Purpose of Request: DClelopmem 01 a I'vl()tel facility With Interstate-r frontage. SUlOman: · The Request. rhe applIcant has requested a zonmg change Irom "R-lB" One Family Dwelling Distnct to a "B-4" General Busmess f>1stnct for the development of Motel facility. · Histor~ The subject property IS contIguous to a corner pIece ofland that was rezoned December 19, 2005 from "R-lB' One Family Dwellmg DistrIct to "8-1/ SP" Neighborhood Business District with a Special Pen1lJt for a motel hotel facility rhe comer tract ofland is 2.5 acres and will not meet the reqUJ rements 0 r' the PIOP( 'sed mote! fad il\ They are now requesting the additional 1. 97 acres to better accommodate the project · Existing Land Use. lhe :-;ubJect property IS vacant land With II'ontage on Sessions Road to the east. Located to the west of the subject property are single family homes In an "R-IB" zoning district. A vacant tract of land north ufthe subject property belongs to the same owner and is zoned "R-IB" One FamIlv Dwelling Dlstnct East of the subject propelty across Sessions Road is a vacant lot zoned "R- 1 B" hut deSignated for cornmerCla] development ill the Future Land I 'se Plan. Up River Road and IIB"7 abut the subject property to the south · Transportation: rhe :-;outh property 11l1L' of the project Site conta111s 384 feet of frontage along Up RIVer Road/frontage road Along Sessions Road, a local street, the subject property contains 276 feet of frontage. · The property j-. If Hated approxlmateh i .000 feet from the beginnmg of the exit ramp off ofIH- · 1 \DOT has mdlcated that the mtersectlOn of a local street (Sessions Road) and the frontage road and a drIveway from the subJect property in proXImIty could create a traffic safety issue, TxDOT has mdicated that a dnveway from the subject property may be possible if the driveway is located at the extreme westem edge of the subject property. A final determination on driveway location ",dl be made \\ihen the property IS proposed for platting. \genda Memurandum i 'ase No. O~06-()1 (Arnba DeVl~lop1l1ent) ~'age :: . Utilities. A \\ atcr connection is avallable to the sIte and a wastewater connection is approximately 300 feet to the nonh '10 Sessions Road · Comprehensive Plan and Land t'se Compatibility. The commercial land use is consistent with the Future Land Use Plan. however since low density residential is planned behind the commercial land use an appropnate buffer or limited commercial use IS appropriate to assure compatibility. The North\, est Area Development Plan also mdicates that this 1-37 corridor is a primary entrance to the CIty ;lOd a designated scenic corndor. r ~e~ with outdoor storage. unlimited signage, etc. are not recommended along lhis ,orridor . Landscaping: The City ~ landscapmg requirements wlll apply to any new development on the subject property, Including a five loot wide landscape screen of vehicular use areas adjacent to public streets and a minmlurn 01 150~) of the total street yard devoted to landscaping. ApDlicant's Position: The applIcant IS In agreement wlth recommendatIon. Notification: Of the eleven ( 11) notices mailed to the surrounding property owners, zero (0) were returned ill favor and zero (0) were returned III opposition The 20% rule is not invoked. This case is ('onsidered noncontroversial. ~~~I Acting Director of Development Services ^vi G/FG!'v1l11 I P Attachments: 1) loning Report :2) Planning C ornmlssion Minute~ (5/0;(16) ~ ) ( lrdmance H\PLN-DIR SH ,\ REIY.Gal I' Wi iRD\AG1NDMEM\11)()6\May 05U6-01 AGENDA MEMO,doc CITY COUNCIL ZONING REPORT Case No. i)5()6l1 Planning Commission Hearing Date: \1ay 3,2006 = c ~;: Q., - .- = .. ~ ~ .~ ~ 'Q,.Q Q.,- ~ ~ <:II ....;j Applicant: A1Tiba Developmenl Owner AlTiba Development Agent: Coym, Rehmet. & (iutJerrez EngineerIng, Inc. Legal DescriptionlLocation: Bemg 1.97 acres out of B. S & F. Survey 419, Abstract 570, Nueces County, !'exas, located along the nOl1h side of Interstate 37, at the intersection of Sessions Road. ~t; = <:II .- = = 0'" C <:II N=z::: From: "R-I BOne-Family Dwellmg Dlstnct TO" "B-4" (ieneral Busincs~ District Area j 9- ac'es Purpose of Requt:st: De\~'lopmt'llt of a Motel faClhty wlth Interstate-37 frontage. <Il <:II <Il ;;J 'e = ~ - 'e = C'= t)J) = '2 C N t)J) J:l .:: <Il .- ;..: ~ ______ Zoning Sire "R.l B" One Famil' .n _ +D\~~lIlOg. DistrlC~._ Vnrtli ! "R, IB" One Famtlv D\\TII1l1g Distnct +- -. ---------- ."ill/tli 'B. SP" NeighbOlhood Busmess I listrict with (! Specla: pt'i'mit for i hotel/motel use. Fast t"R=l B" O;le F~-~Tl~ Dwe 11 i~ >istri l~t_n IVest "R-I B" One Famih Dwelling I hstrict ~ '" Q.,J:l ~ 0 Area Development PIaU' North\\ est ~~ '" Map No.: 061050 ~ ] Zoning Violations None Q> --t =t~~'n_~xistiniIa_nd !js~-~ , \' aeant +\'~~a~t Future Land Use Commercial Residential I \;""1 Commercial Vaeant Commercial LO\v Density Residential Commercial "mng Kc'p,,' 1 .lse No ")\16-01 I Arnha Pcve:upmenti Page 2 ~ g ... ~ ~ .. ... rJJ · Tht'Request. rhe appltcant has requested a zoning change from "R-IB" One Family ] hVl'lIltlg DISI' lct to cl "8-4' , n:neral Business DistrIct for the development of Motel facility, · Histon he ,ubject proper!) IS contIguous to a comer pIece ofland that was rezoned ] kcember 19.2005 from "R.I 13" One Family Dwelling District to "B-1/ SP" Neighborhood Busmes,s [hstnct with a Special Pern1it for a motel hotellacility. The comer tract ofland is :2 5 .lcreS and \, ill not meet the requirements of the proposed motel facility, They are now r~>questmg the .lddltlOnal I ,'T Jcres to better accommodate the project. · Existing Land Use. Thc subJect property IS vacant land with frontage on Sessions Road to the east Located to the west oj the subject property are single family homes in an "R-IB" fOnll1g distrIct A vacant tract ofland north of the subject property belongs to the same owner and IS hilled "R-l B' One FamIly Dwellmg District. East of the subject property aLTOSS SessIOn.; Road IS a vacant lot zoned "R-I B" but deSignated for commercial development 111 the Future land Use Plan. {Ip RIver Road and ill37 abut the subject propert\ tn the south c. ~ e e = rJJ '" r:: ~ ... r.r; · Transportation: The SI ,uth property lme of the lJroject sIte contains 384 feet of frontage along {p HI ver Road/frllntage road, Along SessIOns Road. a local street, the subject property contams F6 feet of frontage · rhe property IS located approximately 1.000 feet trom the beginning of the exit ramp off \ll' IH-.' 7 · !xDOI ha~ indIcated thai the mtersectIon of a local street (Sessions Road) and the Irontage r(lad and a driveway from the subject property in proximity could create a traffic ~afety ISSUe' TxDOT has Indicated that a driveway from the subject property may be pOSSIble if {he dnve\ay IS Illcated at the extreme western edge of the subject property. A llnal determinatlOn 1m driveway location W1]] be made when the property is proposed for platt!11~ · {tilities. \ \\ ater cunnectlOl1 IS available to the site and a wastewater connection is approxImately '00 feet 10 thc nllrth on SessIOns Road, · Comprehensive Plan and Land Use Compatibility. The commercial land use is consistent \\Ith the Futurt Land Use Plan. however smce low density residential is planned behind the CllmmerClai land use an appropriate buffer or lImIted commercial use is appropriate to assure compatibilIty, The Northwest Area Development Plan also indicates that this 1-37 corridor is a primary entrance to the city and a designated scemc comdor. Uses with outdoor storage, unl1rmted slgnage, etc arc nol recommended along this corridor. · Landscaping: J'he City s landscaping reqUIrements will apply to any new development on the subject property. mc:uding a five foot wide landscape screen of vehicular use areas adjacent tll pubhc street.' and cll11l11imum llf 15()~) of the total street yard devoted to landscapi n!-, Street 'ed Section Volume (2001) 61,170 a,d.t tion , ft paved 4,580 a.d,t - ft paved 360 a,d.t TVfl(, Existing Pa" Interstate' ~ Up Ri\t~r Road -- Co II ector ---1----- - - ResldentIa ] 115 ft paved see 7'" R.O,W wi n Sessions Road 3)' RO.W, wi 2:- '" - = IlIl _ Q:;~ IJ) \ plat IS required hefore lmlldlllL': permIts loan be Issued. . '" - = ~ E . E 0 I." - = ~ E - ~ eo: Q.. ~ Q . rJ1l' applIcant can not !Tqucst a SpeClaJ PermIt through the re-zoning process; the Special Permll can be recommended by Staff and Planning Commission and approved by City ('.,unlll. rhe applicant IllllSt requesI eIlher the "B-1" or "B-4" for this case. rl1l' pmpllsed motel development \Vlll occupy the 5.5 acre site on the corner of Sessions RJ,admd the IH-r frontage road and will be buffered to the north by an 80 foot AEP utility easement WIth hIgh tension wires overhead. This physical barrier is a logical boundary hetween the commercial development at the corner and residential in the rear. The requested !97 acre~ would have limited development opportunities zoned as "R-IB" One Fa.mlly Dwellmg Dlstnet. ThiS tract ofland would be best utilized as a portion of the l"()fJ 1111t'rc!Cd deve lopmen t on the corner The "H-I NeIghborhood Business DIstrict allows a wide variety of commercial uses but otTers pro:CCtlOl1 to the neighborhood bv not allowing certain uses such as bars, auto repan ...hops, cte = o ".C IlIl "'C = ~ E E o ("l ~ ~ It: IlIl .... IJ) kma! lit the" B-4 . Genera i BUSIIH:.'SS DJstnet and, ltl lIeu thereot~ approval of a "B-1/ SP" 'JeIghborhood Bu...mess DIstnct \\ Ith a SpeCIal PenTIlt for a one year period, that allows for a hotel ,;J mote! dc\el\lpment = o =".C OJ) 0 eo: .5 'i -g = - ~ = S e ~ E E - 0 0 U ("l ~ " nemal o1the "B-4 General Busmess DIstrICt and. In lieu thereof. approval ofa "B-1/ SP" Neighborhood Bu~mess DIstrict With a SpeCIal Penmt for a one year period, that allows for a hotel or mote! de\elopment. '" -"'C = ~ ~ ~ 8 OQj 8 ~ o - u~ Number of '\1otlce' Mailed: 11 } a vor I) (lpposItlOn. () (\s of April 28. 20(6) HPLN-DIRSli\REI)( ;\11 '\Ol<[)\/' INRPTS\2(1)()\'vla> i"O<l-OJ Repun oue 17APR06/HK F-R Farm Rural District RE Residential Estate District RA One Family Dwelling District R.1A One Family Dwelling District R-18 One Family Dwelling District R-1C One Family Dwelling District R-TH Townhouse Dwelling District R-2 Multiple Dwelling District T-1A Travel Trailer Park District T-18 Manufactured Home Park Dis! T -1 C Manufactured Home Subdivision District i R-1B ~ ,-" Case No. Z0506-01 Notice Map A.1 Apartment House District A-1A Apartment House District A-2 Apartment House District AT Apartment-Tourist District AB Professional Office District 1.1 Limited Industrial District 1-2 Light Industrial District 1.3 Heavy Industrial District SP Special Permit PUD Planned Unit Development B-1 Neighborhood Business District B-1A Neighborhood Business District B.2A Barrier Island Business District B-2 Baytront Business District BD Corpus Christi Beach Design Dist. B-3 Business District B-4 General Business District B.5 Primary Business District B-6 Primary Business Core District HC Historical-Cultural landmark Preservation 8-4 2 r...--....-"'..."........."! .. NORTH o 150 300 Feet MIN{'TES RE<;ULAR PLA"NING COMMISSION MEETING Council Chambers- City Hall Wednesday - '\la~ 3, 2006 Q. i)5()11-01 \rn ba Develupmenl. LLC: hum a "R-] B" One-family Dwelling District to a B-4" General Busllless District Heng 1975 <Icres <Jut of8.S & F Survey 419, -\bstract 570, Nueces County, eX,ls. located at the northwest Il1tersection of Interstate 37 frontage road and \es~!()ns Rua, I Ian MeGIl111 pre,emed the above case with a pO\verpomt presentation showing the subject propert) [()L'ated at Interstate Hlghwa)n and Sessions Road \\lth surrounding land use consisting of vacant land and low denSity residential to the west. The subject property was presented before the Planmng ( 'ImmISSJOI1 ll1 Del,:mber 01 2005 ~lI1d was approved for a "B-1 "/SP" Neighborhood Business ! hstrlCt' lib a SpecIal PCTml for a mute1hotel faciht) Smce the rezonlllg, the applicant finds that an ddditlOmli eJ7 acres I~ IwedtJ to better alcul11modate the motel. and is requesting a rezoning to a "B-4" \leneral HLL~ll1eSS DIslnc! 'Ill' future land liSt' map ca]ls Il)r commeTclalland use at the intersection, The \EP easement \VII creatt a jdglcal buller hl~t\Veen the commercia] and residential areas. Staff -cCOmmenl1- de III a I 01 thl "H 4" Genera] 8usll1ess Dlstrrct and, II1 heu thereof. approval of the "B-1 " \ieighborhpod HUSIl1l"S I llstrict \\ lth " SpecIJI Perml1 in anS\\L'r iu \ ',ll1!I11I.sioner Pusle.. 'lluestJOI1. [vIr Me( iinn stated that the applicant is agreeable I) Staff 1't,'\)OlmCnd,IIJOl In answer 10 !\)JTlInIssioner Skrobaruyk's questIon, Mr (lmn stated that access will be from the vestern portion ,)1' the pn1per'v on lip River Rnad. \lIlhaeJ GLll11lmg staled that Sessions Road 15 a loca] residential street and Staff will work with l'ngineennf! Sef\'lces 10 determine the need tilT a drivev,,:ay upon receipt of the site plan. i ommi:--:--lonCl Pusk.. stated that there IS another exJt on McKen/le and something will have to be done with Sessions Road as II will be overloaded with resldentJaI traffic. There is also a huge drainage ("sue m tillS area bct\\l'en Vwlet and J\lcKen/ll' Mary France~ remenle stated that a~ part of the plat. lfthey are zoned commercial, they will be required 10 dedicate an additIOnal nght-of-\vay The developer IS planning a small detention pond and the north end 01 SessIons Road IS dra1l11l1g to a j 00 year level protection. III allSWLT t,) ( P!1l1TIlS,IOner 7arnora " question, \1s, Goode-Macon stated that the signage would .,ilow a mal. II1lUm SI,l,'ll ,)1' ~5() square feet Ifl area and 65 1rl heIght. "he prohlem \\lth thl~ area IS that a total reworkmg of the storm water drainage system needs to be done. WIth the angle o1'tht' slope. all the storm dram outlets have an outflow ofapproximate1y two to three feet 01 water. \\:11en the river backs up. the water has no place to go The development in this area has increased substantlall) wI' h the storm dramage system not being upgraded, Plannmg ( ,lJ1mlISSlon \1InUIC.' '-'lay 3. 20ii(, "age 2 II ans~n 10 t ',m1mlssioner Huerta' s questIOn about the smaller lots and the absorption of land, \1s. Teni\:me stated that Cl dramage analysis for impcf\lOus land cover 15 done and will be incorporated in he mastn 1'1an ~urrentl~ helllg rc\ le\\ed. Public hearmg was opened Iltor Uutrencz. Co\n, Rehmet. and Ciutienez Engll1eenng, Corpus Christi, Texas stated that there s a detentIOn storage area ll1 place wIth a 80 foot easement The owner 15 in the process of finishing his project and lS agreeabk tl) StatTs recommendation. TxDOT IS allO\ving us to have a driveway adjacent to the west pruperty lme and screemng fences arc ll1stalled A nght-of-way dedication will be complied with <In SessIOns Road J f requested Preparation of the site plan is pendmg. I'ubhc heanng was C i()sed \10tlOn l' OJ approval lor a "B- .. Neighborhood Busmess Dlstnct with a Special Permit was made hy CommiSSIOner Skrobarczyk and seconded by CommISSioner Martinez. Pubhc heanng \vas Closed. Motion passed unanimously wIth Chairman Stone and Commissioner Braselton bemg absent Page 1 of 3 AN ORDINANCE AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY ARRIBA DEVELOPMENT BY CHANGING THE ZONING MAP IN REFERENCE TO 1.97 ACRES OUT OF B. S. & F. SURVEY 419, ABSTRACT 570, NUECES COUNTY, FROM "R-1B" ONE FAMILY DWELLING DISTRICT TO "B-1" NEIGHBORHOOD BUSINESS DISTRICT WITH A SPECIAL PERMIT FOR A HOTEUMOTEL USE; AMENDING THE COMPREHENSIVE PLAN TO ACCOUNT FOR ANY DEVIATIONS FROM THE EXISTING COMPREHENSIVE PLAN; PROVIDING A REPEALER CLAUSE; PROVIDING A PENALTY; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the application of Arriba Development for amendment to the City of Corpus Christi Zoning Ordinance and Zoning Map. WHEREAS, with proper notice to the public, public hearings were held on Wednesday, May 3, 2006, during a meeting of the Planning Commission, and on Tuesday, May 30, 2006 during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi during which all interested persons were allowed to appear and be heard; and WHEREAS, the City Council has determined that this amendment would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. That the Zoning Ordinance of the City of Corpus Christi, Texas, is amended by changing the zoning on 1.97 acres out of B. S. & F. Survey 419, Abstract 570, Nueces County, Texas, located along the north side of Interstate 37, at the intersection of Sessions Road from "R-1 B" One Family Dwelling District to "B-1" Neighborhood Business District with a Special Permit for a hotel/motel use. (Map 061050 SECTION 2. That the Special Permit granted in Section 1 of this Ordinance is subject to two (2) conditions. USE The special permit use is for a hotel/motel. 2 TIME LIMIT: This Special Permit shall be deemed to have expired within one (1) year from the date of this ordinance unless the property is being used as outlined in condition #1 and in compliance with all other conditions and City rules and regulations. >-1 .LEG-DIRIgarvwslgarywslagendaI2( 106105- 30\0506-0 1 B-1 SPArnbagwso60524 doc Page 2 of 3 SECTION 3. That the official Zoning Map of the City of Corpus Christi, Texas, is amended to reflect the amendment to the Zoning Ordinance made by Section 1 of this ordinance. SECTION 4. That the Zoning Ordinance and Zoning Map of the City of Corpus Christi, Texas, approved on the 27th day of August, 1937, as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remain in full force and effect. SECTION 5. That to the extent that this amendment to the Zoning Ordinance represents a deviation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the Zoning Ordinance, as amended by this ordinance. SECTION 6. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed. SECTION 7. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section 1-6 of the City Code of Ordinances. SECTION 8. That publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 9. That upon written request of the Mayor or five Council members, copy attached, the City Council (1) finds and declares an emergency due to the need for immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 30th day of May, 2006. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor, City of Corpus Christi APPROVED: May 24, 2006 ~/AOmitl. Ga . . Smith Assistant City Attorney For City Attorney ri\LE G-DIRIgaryws\garywslagenda\2D06105-30\0506-0 1 8-1 SP Arribagws060524 .doc Page 3 of 3 Corpus Christi, Texas day of ,2006 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi, Texas For the reasons set forth in the emergency clause of the foregoing ordinance, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings. I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, Henry Garrett Mayor, The City of Corpus Christi Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney Jerry Garcia John Marez William Kelly Jesse Noyola Rex Kinnison Melody Cooper Mark Scott H. ILEG-DIRIgal)wsIgarywslagendaI2006105- 3010506-0 1 B-1 SP Arribagws060524 doc 21 AGENDA MEMORANDUM PUBU( HEARING ZONING ('It V ( ouncd AcllOn Date: )/30/06) Case No. 0506-02-Nasser Farahnakian:\ zoning change from a "R-IB" One-Family Dwelling District to a "B-4"(jenera] Busmes~ District The property bemg 5 739 acres out of a 254.069 acres, Abstract 988, Nueces Counh rexas. located a!lmg the southwest comer of Clarkwood Road and the newly constructed State High\\,,\ -+4 Bypas'- Plannin~ Commission and Staff's Recommendation (5/3/06): Approval of the "B-4" General Business Distric f Requested Council Action Appnl\'al of the "B-4" General Busllless District Purpose of Request Ii,de elop a convenience store and auto and truck-fueling stop on 5.739 acres. Summary: · c\pplicanl]s requesting a change of zonmg to a "B-4" District for the purpose of developing a convenience store and auto and truck-fueling stop on 5.739 acres. · ['he subject property is located along the southwest comer of Clarkwood Road and the newly constructed State Highway 44 Bypass. · lh... ovmer presentl\' O\vns the eXisting Sunrise Food convenient store, located at the old State Highway 44 (Agnes Street) and Clarkwood Road intersection. His plans are to relocate thiS busmess to the subject property · ih... proposed use IS planned as a 4,800 square foot single-story building. Hours of operation are projeLted between:; (lOam and midnight. With the success of this project, t he owner plans to further develop the property with a hotel and additional retail uses. .!he Porti AirpoI1Violet Plan supports commercial development on the subject property. Apltlicant's Position: The applIcant h III agreement WIth recommendation. Notification: Of the ten ( 10) notices mailed to the surrounding property owners, zero (0) were returned m favor and zero (0) \vere returned III OppOSItIon, The 200141 rule is not invoked. This case is considered noncontroversial. ~~1{~ MG/FGM/bJp Attac:hments: 1 l Zonmg Report 2 j Planning Commis:--IOIl Minutes (5/oj!06) .~ i Ordmance i\ssistant Director of Development Services 'I PL.N-DIR SH \REU:Ci/lIL WORfl'v\( ,ENDMEM 200(;,f\lav 0506-02 .A( ibND,\MI'MO doc ZONING REPORT Case No. 0506-02 Planning Commission Hearing Date: May 3, 2006 ~ = Ci ...._;: ; .. =- .~ If'r:: Q...;l ~ =- ~ < Q Applicant: Nasser Farahnakian Owner: Same as applicant Agent: CO!1TI, Rehmet & GutJerrez Engineering, L.P. Property Area: Being 5,739 acres out of 254,069 acres, Abstract 988, Nueces County, Texas, located along the southwest comer of Clarkwood Road and the newly constructed State Highway 44 Bypass. ..... ~ ~ = =- ~ Q::: CIJ = 'j; Ci N From: HR_] B" One-famdy Dwelling District To: "B.4" (Jel1eral Business District Area 5. ':~9 acr,~s Purpose of Request: To deyelop a convenience store and auto and truck-fueling stop. If.> ~ ~ ;;I ~ = .. ..;J ~ = .. CIJ = -= Ci N CIJ = ;: f'-l .... ~ I;a;il r------- ----- -i----- Existing Land Us : Agriculture e Future Land Use Commercia] and Light Industrial ces Commercial .- nces Public/Semi -Public ( Airport) Commercial -.--- i Zoning --- -t---- --- .\lIe "R-I B" One-family _ I D\>,ielling District_ _ North r"R-IB" One-family i Dwellmg Distnct ---.+.----- ._- .\outh I "R-l B"One-family I . Dwellmg District and Out ~of \'ity LImits (O.C.l~.J East ' "R-, IB" One-family , DwellIng District .. --.-t-.------ --- West i "R-l B"One-family i Dwellmg District and Out L ()fC1tY11mits{Q..e'1,,) Agriculture land single-family resid~n Agriculture land - -- -------_._._._~--_._-~-"" Single-family reside Agriculture land ~ = Area Development Plan PorVAirport/Violet The future land use map for the subject . Ci ~ ~ property supports the requested commercIal use, '^' Ci Map: 058043 ~: ~ > Zoning Violations: None I.onmg j{eport Case No 0"06-02 (Nasser laraimakian) Page 2 · A.ppllcant is requestll1g a change 01 zoning to a "B-4" District for the purpose of develop1l1g a convenience store and auto and truck-fueling stop on 5.739 acres. · The ~ubJect propert:v' IS located along the southwest corner of Clarkwood Road and the Icwly constructed State Highway 44 Bypass. c. ~ E E = 00 r.'l Ii: ~ ... 00 · fhc owner presently owns the existing Sunrise Food convenient store, located at the old State Highway 44 (Agnes Street) and Clarkwood Road intersection. His plans are to relocate this business to the subject property. · The proposed LIse IS planned as a 4,800 square foot single-story building. Hours of operatIon are projected between 5 :OOam and midnight. With the success of this proJect, the ov.:ner plans to further develop the property with a hotel and additional retail uses · The Port Airport Violet Plan supports commercial development on the subject prope11y ~ o ~ ... Q,I Q,I I- ... 00 Stn'et --- Paved Section Volume 2001 Not available Type Ne\\ State High\\ay 44 Expressway 400' R.O. W. wi 200' Bk. to Bk. sectIon planned 50' R.O. W w/28' Bk. to Bl<.~p~~;ell1 ent - current Not available ('larkwoocl Rdad Rural arterial '" - = s: 3 The sublect propetl Y I S not platted 00 - = r.'l e ~ Subject property J~ planned With frontage along the new State Highway 44 currently under - E constructIOn ; E =-0 QU = o .- ... ~ "0 = = ..s e Approval oj the "8-4" General BUSiness Distnct. 00 E o (J Q,I ~ /oning Rc'pllf1 lase NOI ,'iO()-(}2 i Nas,-el Farahnaktan' Page' c e =:c OJ).$ ~ = :; = "2 .... ~ = El El Approval of the "H-4" General Busmess 1)lstnct .! El El Q.,ee U ~ ~ ~ "'- ~"O = ~ ~ ;;. El .~ ~ ~ Ul:l:: Number of NOllce, Mailed I-avO! I' OpposItion U I\S of April 2t\. 200hl i() \ttachment 70n I ng Map Ii I'LN-DlI< SH/\RE[HJ.\llW()RD/, lNRPTS,2Ii06,j\[a..' l Reports.!I:'1I6-112('(KEP()RTdoc I I I I I I-J I t:XA~- ~ i~GNES ST ( ST. HWY 44 ) 6-4 \ / 1 fa ~ C 54 321 "." " CL 1~ 'r-- f--' . ..._- ~b8 ,~v;C 1 1 ~ C 0) R-1B i I ,1 I I 15'+ H 4 3 "2 D 1\ i5 4 3 2 1 I 5 1 6 5 4 3 2 i '--r;r -- n :j) R-1 B/SP/94-08" 3 R: 1_1 ~ 8 9 1( 1 1 7 8 9 1 1 ~ 8 9 1 111 ~ -r 7 ::u EKLUND 0'- UJ t r~ S~E-- I c v " C o 10 :.4 If r .. (f) " ~ ~-rl ~ r ^ viv,j < v 0 tl 3 m --s- I 7A~ );> ~ ~ IL 4 e;=t=I; I z III A, '., SE .;;S( J,~- >lAP 14'~ ~I ASSESSORS MAP 141 R-1B '- " ST. HWY 44 ( AGNES ST. ) >-::::/ .- n C> r 9 );> >-j.. ;:0 / ^ IU . ~ </ SUBJECT 0 1 ASSESSORS MAP 148 0 111A ~/ PARCEL / 0 . 12A < UJ >- ::u 12 </ ..// 0 1-~ -c.,- . . ;-:::::-//. / / 13 O. c. L. 14 R-18 ( LARK' l100D ANNEX ASSESSORS HAP [48 I 17 APR06/H K. Case No. Z0506-02 Notice Map - ~ .~ , -- - -- F-R Farm Rural District A.1 Apartment House District B-1 Neighborhood Business District RE Residential Estate District A-1A Apartment House District B.1A Neighborhood Business District RA One Family Dwelling District A-2 Apartment House District B.2A Barrier Island Business District GIS R-1A One Family Dwelling District AT Apartment-Tourist District B-2 Bayfront Business District Team R.1B One Family Dwelling Distnct AB Professional Office District BD Corpus Christi Beach Design Dis!. ;;~~j1'r R.1C One Family Dwelling District B-3 Business District R-TH Townhouse Dwelling District .1 Limited Industrial District B.4 General Business District . R.2 Multiple Dwelling District .2 Light Industrial District B-5 Primary Business District T.1A Travel Trailer Park District -3 Heavy Industrial District B.6 Primary Business Core District T.1B Manufactured Home Park Dlst. SP Special Permit NORTH T-1C Manufactured Home HC Historical-Cultural Landmark 0 200 400 Subdivision District DUD Planned Unit Development Preservation I Feet MINUTES REGULAR PLANNING COMMISSION MEETING ('ouncil Chambers- City Hall Wednesday - May 3, 2006 h. 0506-02 Nasst:r Farahnaklan From u ")\-11:3" One-family Dwelling District to a "13-4" ~Jencral Business Dlstrict .. .......~____ Being 5.739 acres out ofa 254.069 acres, Abstract 988, Nueces County, Texas, located along the southwest comer of Clarkwood Road and the newly constructed ~tatt HIghwav 44 Bvpass. i. arvce Goode-Macon presented the above case \Vlth a slide presentation showing the subject property iocated along the Cbrkwood Road and the newly constructed State Highway 44 and the '-,urroundmg area conslstmg of agrIculture land and smgle family residential. The request is for a "13-4" 'ieneral Busmess Dlstnct for the purpose ,)1 developll1g a convel1lence store and fueling stop that the dPphcanl has simllarl) along\gnes R.)ad Ihe applicant desires to relocate that business to the subject propert) The proposed COI1\ enience :-.tore IS proposed as a 4.800 square foot single story building with hours of operation between 5 DO a.m. 10 ]1mimght. Therc \\ere ten (10) notices mailed out with none eceived In iavor or OflP(hltil'lI. Staff"ccol1ll1lends approval of the "]3-4" General Business District. .!'uhllc heanng was opened IdOl' (iutlclTe? ( 'o'.n, Rehmet, and Gutierrel Engll1eenng, Corpus Christi, Texas stated this lacility I baslcallJ sllllllar to the applicant's existing use 1'1r. Gutierrez stated that the entire site will be nlatted but ,il thIS time tht apnlicant IS only developing the southwest comer. I'ubllc heanng was cnsed \lolIon teH approval ,vas made by CommiSSIOner Skrobarczyk and seconded by Commissioner Martine;; 1'\'10tlOn pas~ed unanimously WIth Chairman Stone and CommIssioner Braselton being absent. Page 1 of 3 AN ORDINANCE AMENDING THE ZONING ORDINANCE, UPON APPLICATION BY NASSER FARAHNAKIAN, BY CHANGING THE ZONING MAP IN REFERENCE TO BEING 5.739 ACRES OUT OF 254.069 ACRES, ABSTRACT 988, NUECES COUNTY, TEXAS, FROM "R-1 B" ONE- FAMILY DWELLING DISTRICT TO "8-4" GENERAL BUSINESS DISTRICT; AMENDING THE COMPREHENSIVE PLAN TO ACCOUNT FOR ANY DEVIATIONS FROM THE EXISTING COMPREHENSIVE PLAN; PROVIDING A REPEALER CLAUSE; PROVIDING A PENALTY CLAUSE; PROVIDING FOR PUBLICATION; AND DECLARING AN EMERGENCY. WHEREAS, the Planning Commission has forwarded to the City Council its reports and recommendations concerning the application of Nasser Farahnakian, for amendment to the City of Corpus Christi Zoning Ordinance and Zoning Map; WHEREAS, with proper notice to the public, public hearings were held on Wednesday, May 3, 2006, during a meeting of the Planning Commission, and on Tuesday, May 30, 2006, during a meeting of the City Council, in the Council Chambers, at City Hall, in the City of Corpus Christi during which all interested persons were allowed to appear and be heard' and WHEREAS, the City Council has determined that this amendment would best serve public health, necessity, and convenience and the general welfare of the City of Corpus Christi and its citizens NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI. TEXAS: SECTION 1. That the Zoning Ordinance of the City of Corpus Christi, Texas, is amended by changing the zoning on being 5.739 acres out of 254.069 acres, Abstract 988, Nueces County, Texas, located along the Southwest Corner of Clarkwood Road and the newly constructed State Highway 44 Bypass, from "R-1 B" One-family Dwelling District to ''8-4'' General Business Distnct. (Map 058043) (Exhibit) SECTION 2. That the official Zoning Map of the City of Corpus Christi, Texas, is amended to reflect the amendment to the Zoning Ordinance made by Section 1 of this ordinance SECTION 3. That the Zoning Ordinance and Zoning Map of the City of Corpus Christi, Texas, approved on the 27th day of August, 1937 as amended from time to time, except as changed by this ordinance and any other ordinances adopted on this date, remain in full force and effect SECTION 4. That to the extent that this amendment to the Zoning Ordinance represents a deViation from the Comprehensive Plan, the Comprehensive Plan is amended to conform to the Zoning Ordinance. as amended by this ordinance. H \LEG-OIR\Shared\GaryS\agenda\20D6\05_30\0506_02 \Jasser Farahnakian Regulargws060522.doc Page 2 of 3 SECTION 5. That all ordinances or parts of ordinances in conflict with this ordinance are hereby expressly repealed SECTION 6. A violation of this ordinance or requirements implemented under this ordinance constitutes an offense punishable under Section 1-6 of the City Code of Ordinances. SECTION 7. That publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. SECTION 8. That upon written request of the Mayor or five Council members, copy attached the City Council (1 ) finds and declares an emergency due to the need for Immediate action necessary for the efficient and effective administration of City affairs and (2) suspends the Charter rule as to consideration and voting upon ordinances at two regular meetings so that this ordinance is passed upon first reading as an emergency measure on this 30th day of May, 2006. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett. Mayor, City of Corpus Christi APPROVED: May 22, 2006 (1.... J. Y'i.',Ji __..______ ~ Assistant City Attorney For City Attorney ...,. \LEG-DIR\ Shared\GarvS\agenda\2006\05-30\0506-02 Nasser F arahnakian Regulargws060522.doc Page 3 of 3 Corpus Christi Texas ___ day of ______ _, 2006 TO THE MEMBERS OF THE CITY COUNCIL Corpus Christi Texas For the reasons set forth in the emergency clause of the foregoing ordinance, an emergency exists requiring suspension of the Charter rule as to consideration and voting upon ordinances at two regular meetings. I/we, therefore, request that you suspend said Charter rule and pass this ordinance finally on the date it is introduced, or at the present meeting of the City Council. Respectfully, Respectfully, -----. - -----..------------.. -~.. ---. --- -. Henry Garrett Mayor, The City of Corpus Christi ~---- .._._.._._~-_._--~....__. ---- Council Members The above ordinance was passed by the following vote: Henry Garrett Brent Chesney John Marez Jerry Garcia William Kelly Rex A. Kinnison Metody Cooper Jesse Noyola Mark Scott H. \LEG-DIR\Shared\GaryS\agenda\2J06\05-30\0506..02 Nasser F arahnaklan Regulargws060522.doc ~... b ~3: FIELD NOTES fora 5.17+/- ACRES of LAND A tract ofland containing 5. 17 acres ofland out of Lots 7 and 8, Section 11; Flour Bluff and EncinB1 Farm and Garden Tracts, a map ofwhicb is recorded in Volume ~ Pages 41 - 43, Map Records ofNueces County, Texas described by metes and bounds as foDows: BJ!GJNNJ.NG at the South comer of the R.E. Thurman 14.00 acre tract (Volume 245, Page 222, Deed of Trust Records) for the East corner of this tract; THENCE. South 28055' 05" West 63470 feet for the South Comer oftbis tract; THENCE North 400 00' 00" West 54.83 feet for the point of curvature of a circular curve to the 1. whose radius point bears South 50000' 00" West 836.16 feet and having a central angle of 21004' 55". a radius of 836.1 6 feet, a tangent distance of 15559 feet and an arc lenght of307.67 feet; THENCE with said circular curve to the left, 307.67 feet for the point of tangency; 11fENCE North 610 04' 55" West, 34.87 feet for the West comer of this tract; THENCE North 280 55' 05" East, 559.29 feet to a point on the Southwest boundary line of said R. E. Thurman 14.0 acre tract for the Nortb comer oftbis tract; THENCE south 610 02' 30' East, with said Southwest boundary line, 386.79 feet for the POINT OF BEGINNING. C/J.Je JJ!} o Lf06-Db" 22 - CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Presentation of the Coliseum Redevelopment Request for Qualifications/ Request for Proposal Process STAFF PRESENTER(S): Name 1. Oscar Martinez 2. Irma Caballero 3. Title/Position Asst. City Manager Director Department Admin. Services Eco. Development OUTSIDE PRESENTER(S): Name Title/Position Oraanization 1. 2. ISSUE: Overview of Coliseum Redevelopment Request for Qualification/ Request fur Proposal Process BACKGROUND: The presentation is in response to a request from Council during the May 23, 2006 Council meeting. REQUIRED COUNCIL ACTION: Additional Background Exhibits 23 AGENDA REINVESTMENT ZONE NO.2 BOARD DATE: Tuesday, May 30. 2006 TIME: During the meeting of the City Council beginning at 10:00 a.m. LOCA TION: City Council Chambers City of Corpus Christi 1201 Leopard Street Corpus Christi, Texas 78401 A ('all meeting to order. B. Ro II check. Directors: Samuel L. Neal.lr., President Terry Shamsie, Viet' President B rent Chesney Melody Cooper Jerry Garcia Henry Garrett John Marez Jesse Noyola Mark Scott Rex A. Kinnison John Longoria Cal Jennings (Hospital District) John LaRue (Port of Corpus Christi Authority) Richard Pittman (Flour Bluff) Gabriel Rivas (Del Mar) C. Special consideration items: Officers: George K. Noe, General Manager Armando Chapa, Secretary Mary Juarez, Assistant Secretary Vacant, Treasurer Vacant, Assistant Treasurer Approval of the minutes of the February 25, 2003 meeting. Appointment of Officers (President, Vice President, General Manager, Secretary, Assistant Secretary. Treasurer. Assistant Treasurer) D. Public Comment E. Adjournment TAX INCREMENT REINVESTMENT ZONE NO.2 BOARD MEETING MINUTES February 25, 2003 PRESENT Members Staff Samuel L. Neal. Jr . President Javier Colmenero Rex A. Kinnison John Longoria Jesse Noyola Mark Scott Richard Pittman (Flour Bluff) Gabriel Rivas (Del Mar College) Terry Shamsie (Nueces County) George K. Noe, General Manager Armando Chapa, Secretary Lee Ann Dumbauld, Treasurer ABSENT: Members Brent Chesney John LaRue (Port of Corpus Ghristi Authority) Cal Jennings (Hospital District) Call the meetina to order - President Neal called the meeting to order at 2:13 p.m. 2 Appointment of Vice-President - President Neal made a motion to appoint Terry Shamsie as Vice-President; seconded by Mr Colmenero and passed unanimously by those present. 3 Approval of minutes of the meetina of Mav 28, 2002 - Mr. Scott moved that the minutes be approved: seconded by Mr Longoria and passed unanimously by those present. 4 Appointment of Georae K. Noe as General Manaaer - President Neal made a motion to appoint George Noe as General Manager: seconded by Vice-President Shamsie and passed manimously by those present 5. Approval of the project and financina plan and execution of a Tri-Partv Aareement - General Manager Noe explained that Item No. 4 was a motion to approve the project and the financing plans for the Zone as required by the Tax Increment Statute. City Engineer Angel Escobar presented a report on the status of the Packery Channel project. He stated that engineering plans and specifications have been completed and the Environmental Impact statement is scheduled to be published February 28, 2003 through March 28, 2003. The PrOject Cooperation Agreement is scheduled to be executed between the City of Corpus Christi and the U.S. Army Corps of Engineers at the end of March with the utility adjustments occurring in Apnl-June The project is scheduled for completion in 24 to 30 months. General Manager Noe introduced the group discussing the financing plan: Treasurer Lee Ann Dumbauld; Jim Gilley Coastal SeCUrities; and AI Allison and Christopher Allison, M.E. Allison and Company. Mr Noe explained that the action is to approve the plan and not the actual financing document The bonds will be issued by the North Padre Island Development Corporation_ The T!F Board will be asked to consider a Tri-Party Agreement among the City, the North Padre Island 1 - Development Corporation and this board to execute the project. The bonds will be issued in three c;enes as needed ~here IS 2; requirement to give the U.S. Army Corps of Engineers a portion of 'he dollars each fiscal year Over the three-year period. the City will issue the entire amount of fionds approved for the City's share of this project rreasurer Dumbaulu said the initial ERA report was done in 2000 and updated in 2002. The financing plan IS dependent upon assumptions in that plan which provide two different scenarios. 'he City financing pJan uses the more conservative approach. The last two pages of the financing 'Jlan shows caS!l flow, debt service. and monies available from the TIF fund for maintenance negtnnlng in ?OOH Mr Kinnison asked tor details on the projected Interest rate and the term. Mr. AI Allison said the fnal maturity of the t)onds would be December 31, 2022. Mr. Christopher Allison said the initial senes of bonds will he issued at a 7 '//10 interest rate The second two sales are projected at 7 ',uU unless there is growth in the TIF which would reduce the rate. Mr. Kinnison asked if there Here any penalties. Mr. Christoper Al!ison said they are working on setting up a "call" in five years Nith the call premlUrT going down to :)ar in ten years 'Iesponse to Mr K'rmison regarding maintenance costs, Mr. Noe said the original project called for a maintenance reserve of $4 million partially funded by the City and partially funded by the federal government. The financing plan shows the City's share for maintenance as $1.4 million >vhlch is included In H,e bond issuance Staff has agreed in the financing plan not to utilize excess 'IF revenues for maintenance until there is a commitment of $3 million in a reserve fund. Mr. r<lnnlson said that durrng the promotion of this campaign, maintenance was always an issue. He said that he told constituents H,at maintenance would be a priority to debt service and the way the pian IS presented, ,he debt service has priority over maintenance. Mr. Gilley said it was ",possible to have naintenance a~ a priority and believes that the maintenance will be covered tiased on the conservative cash flow projections He said it would not be possible to sell bonds Will' fnalntenance as a pnonty ovel the debt service Mr Kinnison said the bond holders also f'ave an Interest II! miJlntenance belllq paid and said he was not aware of this change. Mr Scott stated 11e Ciiso shared the same concerns as Mr. Kinnison, however he continued by saYing that It was a good day as far as financing IS concerned because today the Corporation was approving the local share funding the environmental and structural plan is being published, and alter thirty days !here would be a Signed contract He reiterated that he was disappointed because he had campaigned with !l1alntenance as a pnority and now is being told of this dramatic (flange In tile fina'lcirq plan ~11 Scot! thanked staff for their hard work. Mr Neal asked how tne Corporation could put in another $1.6 million into the maintenance fund. Treasurer Dumbauld;aid to add additional money would make It difficult to stay within the cash flow limitations Mr. Neal said if the Corporation gets to Series 2004 which is assumed at $4.3 n'dllon, In order te increase the projections the plan would have to be changed materially. Mr. Nea! asked If the:::omoratlon can anl!Clpate any additional ways to get the maintenance reserve funcled. Mr. Gilley sa'd that by the time the next series IS Issued. TIF revenues might exceed the cDnservative forecast Mr Noe said that the construction cost has not been determined by bid a'd there IS a pOSSibility the project card comes in lower, with the savings going to the rraiiltenance tLnd M. Neal asked what the federal amount of funding would be next year. Mr. Escobar said the fedel al amount estllT1ate is $8 million and the third year would be $5.5 million. M: .Javier ColmE'ner; asked If the percentage of growth IS conservative, what kind of modlficattons could be made to Increase/decrease that interest rate for the bond. Mr. Gilley said tt-e hrst Issue IS 7i% which is fixed the second issue would be based on increased values and otner market conditions If values continued to Increase, it IS possible that rates would be lower. Me CJllley also stated that If there was no development, maintenance would not be the main problem Tile fl,al'l plf:>blern wDulc be the bond payment and that is why the most conservative Tlethod was being used. He said the City has no guarantee on the bonds the way the bonds are structured Mr K.innlson said it the TIF Carlt afford to pay the maintenance because of the agreement that the City enters into, the City woule be liable to payment Mr Noe said as the local sponsor, the City is obligated to maintain the project for a fifty-year period. Mr Kinnison asked what would happen if buyers for the next series of t)onds are not there because there is no development in the area, then who would have the obllgatior: Mr. Noe said the Project Cooperation Agreement states that as the local sponsor the City :s making the basic commitment to provide the funds based on this "Iethod of financing. Acting City Attorney Jay Reining said that the City would have to refund the is Army Corpslf E ngineer'~ portion if the project was not completed, Mr Kinnison asked the finance team It there is a way to get a firm commitment that the bonds will be issued. Mr. Christopher Allison said the TIF projections are very conservative and expects (ievelopment to .)Ccur. Mr Scott said that the Corporation believes that development and III vestment Will happen in the TIF area and continued development should be encouraged. Mr. AI Allison said that If they sold $10 million In bonds at 7 12% right now, they could only invest in short terr: government securities and woullj have negative arbitrage earnings. Mr. Neal said the projected mallltenance cost, In 2008 IS $350,000 for anticipated dredging. Mr. Escobar said the oroJect Includes two extra feet of overland dredging and two to three-year cycles for anticipated dredglllg. Mr Neal said the worst case scenario the bonds could be paid off in 201') which still PlitS the plan If a good position Mr Richard Pittman said the report was clear and that Flour Bluff Independent School District has not agreed to waive any of thel' ad valorem tax rights on the TIF property or any increases. Mr. Shamsle asked about the conservative growth rate Mr. Gilley said that the ERA study has two growth rates one produces $38 million and the other $31 million with growth at slightly different rates for different areas. He added that they use the most conservative rate based on reasonable growth rates. General Manager Noe said there were two scenarios: the first had an increase of 9%, Hle second had different sections at different rates which produces the lowest level of revenue. Statf used scenario two. Mr Gabriel Rivas salcJ that the plans look acceptable and wanted to reiterate the problems with selling bonds right now on the project Mr. Scott said there was a developer on the project but because of a change in the parameters the developer deCided against bUYing the bonds. He added that the developer might have another project in the $3 million range. He also recognized the Allison family for selling bonds on Padre Island before anyone else would. Mr. Neal thanked all the staff and the financing teams for their efforts A rnotior was marle to approve Item 4 as follows: Resolution approving the project am! financing plan for the Zone and recommending its approval to the City Council of the City of Corpus Christi. Texas, and approving the execution of a Tri-Party Agreement with respect to the project and finanCing plan The foregOing !'esolutlon passed as follows Neal, Shamsie, Colmenero, Longoria, Noyola, Scott, Pittman and Rivas \/ot'ng "Aye" Kinn!son voting no .) Public comment None Adjournment The meeting was adlourned at 259 p.m , - 24 AGENDA NORTH PADRE ISLAND DEVELOPMENT CORPORATION DATE: Tuesda) , May 30, 2006 TIME: Dunng the meeting of the City Council beginning at 10:00 a.m. LOCATION: City Counc]] Chambers City of Corpus Christi ] 20] Leopard Street Corpus Christi, Texas '7840 I A. ('all meeting to qrdeL R Roll check Corporation Directors: Vacant. President Mark Scott, Vice-President Brent Chesney Melody Cooper Jerry Garcia Henry Garrett Rex Kinnison John Longoria John Marez Jesse Noyola Officers: George K. Noe, Executive Director Armando Chapa, Secretary Cindy O'Brien, Treasurer C SpeCIal consideration items: Approval of the minutes of the July 13,2004 meeting. ) Appointment of Officers (President, Vice President, Executive Director, Secretary, Treasurer) "' Resolution authorizing the issuance of North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2006, in an aggregate principal amount not to exceed $2,900,000; approving a bond purchase agreement and other contract documents relatmg to the Series 2006 Bonds; and containing other provisions related thereto, O. Public Comment E. Adjournment NORTH PWRE ISLAND DEVELOPMENT CORPORATION JUL Y 13, 2004 elT) HALL COUNCIL CHAMBER 10:04 A.M. PRESENT: Members Samuel L Neal, Jr. Presiclent Mark Scott, V Ice President Brent Chesney Javier D. Colmenero Rex A. Kmnison John Longoria Jesse Noyola Staff Creorge Noe, General Manager Armando Chapa, Secretary Cindv O'Brien, Treasurer ABSENT: Melody Cooper A. Call to order MT Neal called the meeting to order at 10:04 a.m. B. Roll check City Secreta~ Amlando Chapa called the roll. Special Consideration items: Approval of minutes of November 11, 2003 meeting - Mr. Longoria made a motion to approve the minutes of November I I, 2003, seconded by Mr. C\Jlmenero dnd passed unanimously; Cooper absent Appomtment of Treasurer Mr Noe recommended Cindy O'Brien to serve as Treasurer. \ir. Neal made a motion to appoint Cindy O'Brien as Treasurer, seconded b\ Mr Kinnison and passed unanimously: Cooper absent. Packery . Channel Update Kevin Stowers, Assistant Director of Engineering, reported that work began on the project in 2003 and the project was 21% complete a~ of June 30. 2004. The original estimated construction completion date IS scheduled for August 2005 and staff anticipates completion on or before thIS date. Mr. Stc1wers stated that Reach 2 of the dredging, located at the Intercoastal mto State HIghway 36 L IS complete and 105,000 cubic yards of sand has heen removed. Placement Area 2 work was completed from State Highway ")6 I to the dune protection Ime includmg st0Tl11 drainage systems and 1,000 feet of the dune line mitigatIon arc also completed. Casings for utilities 361 have been IT1stalled as ,vell as the sand bypass casings that provide for maintenance after the facihty' ]s complete In Placement Area 3. sand placement is complete, the erosion tilter fabric has arrived and IS waiting installation, and concrete cellular blocks have been mstalled to hold the fabric in place. A grant was received from fexas Parh and Wildlife for a boat ramp along Packery Channel that will be matched with City funds 'vlr. Sto\vers explained that six barges of base stone that have heen harged [(I Rlllcon Channel with approxImately 20 tons in place and Inspected al this time. fhe Bridge Protection Plan has been approved by the Texas Department of lransportatlon and the existing schedule is for the contractor to begm delivering stone to the site next week. Two barges have been temporarily Installed to protect the columns. Mr. Scott asked what would happen once the stone arrives to the channel site. Mr. StO\vers explained that the fabric would be installed and the smaller cube stones will be nstalled in order to protect the channel so that the slide slopes will not erode in 1\ Ir. Scott asked when the rock would be placed. Mr. Utter said there were three types of stone The concrete block is already out there which is the shore plOtedion for the basin area Next week there are six barges already at RJncot1 that the COlllractor \vill take over and unload it to the jetties. Finally, the large S '() 0 jettie stones will be rnstalled at the end of the next week on the lettles and tile rest \\11] he stock pIled on the beach. As the dredging starts from the baSIn out. then the Cdnlractor will then install the jettie stone. ~ Issuance of North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2004 - Jim Gilley. Financial Advisor, explained that this \vas the third bond issue uf the Packery Channel project estimated at an amount not te exceed $4 5 million Mr. GIlley said they are asking the Corporation for authorJzation to price at a later date. rile target price and signing of the bond purchase agreement is,cheduled for September 22. 2004 and the closure of the hond s"cheduled lor around October 20th The structure of the bond issue is simIlar 10 tho two prc-vious honds sold with finally maturity set for September 15, 2022 Ihe /:one expires December 31. 2022. Mr. Gilley said he anticipated pu1tin~ a fl\ ," year cd1 uptlun on the honds to allow at some point to refinance at .1 10\\ er (os! In response to Mr ~lmllS()n. Mr. Gilley stated that the interest rate on the first Issue \va" - ')0,/0 and tt1L' ,,('cond at 7 2')0~, !\Ilr. Gilley said the rates are higher nght 110\\ bllt he expects the rate to he around the same amount plus or minus. Mr K 111l1lS0n asked that I f the Corporation issues the bonds, the funds are not expended unless there are lCderal funds available. Mr, Noe said this was correct. Mr Klllnison said the financial infornlation stated the bonds are good and the ( 'orporatlon C;hOllld be ahle to go back and get a lower interest rate. Bill Kopeck" 3609 lopeka, asked the Council to he cautious when selling the honds because of high interest rates /\ motIon was made to approve Item 4 as follows: Resolution .LUthorizmg the issuance of North Padre Island Development Corporation Tax lncrement Contract Revenue Bonds, Series 2004, in an aggregate principal amollntnot to exceed $4,500,000; approving a bond purchase agreement and other contract documents relating to the Series 2004 bonds, and containing other proVisions related thereto. The foregoing resolution passed as follows: Neal, Chesney, Colmenero, Kinnison, Longoria, Noyola, and Scott voting "Aye"; Cooper absent. Adjournment fhl' meeting was adjourned at 10'1 7 a.m. BACKGROUND INFORMATION RELATING TO NORTH PADRE ISLAND DEVELOPMENT CORPORATION TAX INCREMENT CONTRACT REVENUE BONDS, SERIES 2006 North Padre Island Development Corporation, a not-for-profit local government corporation, was established by the City of Corpus Christl ("the City") under the provisions of Chapter 431, Texas Transportation Code, and the general laws of the State of Texas to aid, assist, and act on behalfofthe City in the performance ofthe City's governmental functions and to provide a means of financing certain project costs in connection with Reinvestment Zone Number Two, City of Corpus Christi, Texas. It is governed by a Board of Directors, whose members are appointed by the City Council. In November 2000, the Reinvestment Zone #2 was created by the City Council, pursuant the provisions of the Tax Increment Financing Act ("TIF Act"), Chapter 311, Texas Tax Code to facilitate development of a channel and other facilities in the Packery Channel area. After a petition, the City Council submItted the ordinance to the voters in April 200 I, which the voters approved. The Zone became effective on November 14,2000, and will terminate on December 31,2022, or at an earlier time designated by subsequent ordinance of the City, or at an earlier time that all zone project costs, tax increment bonds and the mterest on all tax increment bonds, have been paid in full. As reqUIred under the TIF Act, the Zone Board prepared, and the City Council approved, a Project Plan and Reinvestment Zone Financing Plan (the "Plan") on February 25,2003. The Plan includes mformation concerning proposed land uses and development, estimated project and non-project costs and admInistrative expenses, engineering studies, proposed financing and economic feasibility data, and property appraIsal data fhe City of Corpus Christl and the North Padre Island Development Corporation have authorized through the bond indentures the issuance of up to $12,000,000 in bonds to fund the Packery Channel project. To date, $9, I 00.000 in bonds has been issued, leaving a remainder to be issued of $2,900,000. A fourth Issue in an amount not to exceed $2,900,000 is now needed to cover costs through the end of the project. Of the total $30,656.948 projected cost of the Project, the City as Project sponsor has agreed to pay 35% of the total projected cost (or approximately $1 0,733,049). The remaining Project costs are to be paid by the United States Government. The City has created the Zone for the purpose of raising funds needed to prov Ide the Zone Project Costs. The project costs include approximately $1 ,538,461 of damage caused by HUITlcanes RIta, Katrina, and Emily, and approximately $1,435,109 of cost overruns The Zone intends to also expend approximately $500,000 for recreation improvements, $800,000 f{x parking costs, and establishment of a maintenance reserve. From the onset, it was stated that bonds to fund the project would be payable solely from the tax increment fund and not trom other city revenues, and that the transaction would be designed to completely insulate general ,'ity revenues from liabIlity on the bonds City Staff recommends the approval of the Resolution by the North Padre Island Development CorporatIOn authorizing the issuance of Series 2006 Bonds in an aggregate principal amount not to exceed $2.900.000, RESOLUTION AlITHORIZING THE ISSUANCE OF NORTH PADRE ISLAND DEV ELOPMENT CORPORA nON TAX INCREMENT CONTRACT REVENUE BONDS, SERIES 2006, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,900,000; APPROVING A BOND PURCHASE AGREEMENT AND OTHER CONTRACT DOCUMENTS RELATING TO THE SERIES 2006 BONDS; AND CONTAINING OTHER PROVISIONS RELATED THERETO BE IT RESOLVED BY THE HOARD OF DIRECTORS OF THE NORTH PADRE ISLAND DEVELOPMENT CORPORATION: \RTICLE f RECIT ALS WHEREAS, by Ordinance No. 024270, adopted on November 14, 2000 (the "Creation Ordinance"), the City of Corpus Christl. Texas (the "City"), created a tax increment reinvestment zone known as "Relmestment Zone Number Two, City of Corpus Christi, Texas" ("TIRZ Two"), pursuant to the provlslllns <JfChapter 3] I. Texas Tax Code, and approved a preliminary reinvestment zone financing plan for TIRZ Two: and \VHEREAS, by Resolution No. 025040, adopted on October 8,2002, the City authorized the creation of the North Padre Island Development Corporation (the "Corporation") to aid, assist and act on behalf of the City in the performance of the City's governmental and proprietary functions with respecl tl) the common good and general welfare of the City, as described in the Creation Ordinance; and WHEREAS. lIn February 2:\ 2003, the Corporation adopted a "RESOLUTION AUTHORlZING THE ISSUANCE OF NORTH PADRE ISLAND DEVELOPMENT CORPORATION TAX INCREMENT CONTRACT REVENUE BONDS, SERIES 2003, IN AN AGGREGATE PRINCIP,\L AMOUNT NOT TO EXCEED $3 MILLION; APPROVING AN INDENTURE OF TRUST AND OTHER CONTRACT DOCUMENTS RELATING TO THE BONDS, AND CONT '\INING OTHER PROVISIONS RELATED THERETO (the "Initial Bond Resolution"): and \\iHEREAS, pursuant to the tenns of the Initial Bond Resolution, the Corporation approved that certam Indenture of Trust by and between the Corporation and jPMorgan Chase Bank, National AssoclatlOn (the successor to jPMorgan Chase Bank) dated as of February I, 2003 (the "Indenture"), pursuant [(l which the Corporation set f(mh the tenus and conditions by which it could issue, sell or deliver lis bonds. notes or ,)ther obligations ill accordance with the tenns of the Indenture to fund Project Cl)sts for the benefit ofTIRZ Two, established various Funds and Accounts for the benefit of the uwners of such bond:,. notes or other obligations, and assigned and pledged to the Trustee such Funds and Accounts for the benefit \)f such owners: and WHEREAS. pursuant to the tenns l)fthe Initial Bond Resolution, the Corporation approved that certam Tri-Party Agreement by and between the City. TIRZ Two, and the Corporation dated as of February 1. 2003 (the "T ri-Party .\greement"), pursuant to which the Corporation was delegated the power and authority to issue, sell or deliver its bonds, notes or other obligations in accordance with the tenm of the Tri-Party Agreement; and WHEREAS, on Februal) 25. 2003, the City approved the terms of the Initial Bond ResolutIon, the sale of bonds in an amount not to exceed $3,000,000, and approved the Indenture and the Tri-Party Agreement; and WHEREAS, pursuant to the tem15 of the Initial Bond Resolution and the Indenture, on April 30,2001, the Corporation issued and delivered its North Padre Island Development Corporation Tax Increment Contract Re\ enue Bonds. Series 20m, issued in the aggregate principal amount of $2,500.000 (the "Senes :.'003 Bonds"). and \VHEREAS, the CorporatIOn reserved the right in the Indenture to issue "Additional Parity Bonds" (as defined in the Indenture) on a parity with the Series 2003 Bonds; and WHEREAS, on November I L 2003, the City approved the terms ofa resolution authorizing the sale of bonds in an amount not to exceed $2,500,000 (the "Series 2003A Resolution"); and WHEREAS, pursuant to the terms of the Series 2003A Resolution and the Indenture, on December 18, 2003. the Corporation Issued and delivered its North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series2003A, issued in the aggregate principal amount 01'$2,500,000 (the "Series 2003A Bonds") on a parity with the Series 2003 Bonds; and WHEREAS, on July 13,2004, the City approved the terms of a resolution authorizing the sale of bonds III an amount not to exceed $4.500,000 (the "Series 2004 Resolution"); and \\HEREAS, pursuant to the lenns of the Series 2004 Resolution and the Indenture, on October 20. 2004. the l'orporatlon issued and delivered its North Padre Island Development CorporatIon Tax Increment Contract Revenue Bonds, Series 2004, issued in the aggregate principal amount 01'$4, I 00,000 (the "Series 2004 Bonds") on a parity with the Series 2003 Bonds and the Serie... 2003A Bonds; and WHEREAS, the bonds hereinafter authorized are the fourth series ofbonds to be issued under the terms of the Indenture, shall constitute "Additional Parity Bonds", and upon the delivery of the bonds hereinafter authorized, the aggregate principal amount of the bonds issued by the Corporation as "Parity Bonds" I as defined in the Indenture) will not exceed $12,000,000; and WHEREAS, the City is not located in a county with a population of 2.1 million or more resident s; and WHEREAS, as pennitted by Chapter 431, Texas Transportation Code, as amended, the Corporation desires to issue bonds hereinafter authorized upon the terms and conditions and for the purpose-- herein provided -2- ARTICLE II DEFINITIONS AND INTERPRETATIONS -------..--.. ~ectlOn 2.1 pefinitions. [n this Resolution, the following tenus shall have the following meanmgs. unless the context clearly indicates otherwise. Terms not defmed herein shall have the meanmgs assigned to such ternlS in the Indenture: The tenn 'Audit" shall mean the audited annual financial statements of the Corporation prepared by an mdependent auditor. I he ternl "AuthorvedDenorninatlons" shall mean $ I 00,000 or any integral multiple of$5,000 in excess (lfSIOO,OOO The ternl "Authorved Representative" shall mean the President or any Vice President ofthe CorporatIon. the Executive Director ofthe Corporation, or any other person designated by the Board of DireCl ors of the C'orporation to act III such capacity The ternl "Bond Resolution" shall mean, collectively, this Resolution and the resolutions authonzmg the Issuance of the Senes 2003 Bonds. the Series 2003A Bonds and the Series 2004 Bond, 1 he term "Comptroller" shall mean the Comptroller of Public Accounts of the State of Texas. The ternl "Dated Date" shall mean. with respect to the Series 2006 Bonds, the date so designated in the Purchase Contrac1, The term "DeSIgnated Trust Office" shall mean the designated corporate trust office of the Registrar which, as of the date of adoption of this Reso[ution. is located in Dallas, Texas. T he term "Indenture" shall mean the Indenture of Trust dated as of February 1,2003 between the Corporation and lPMorgan Chase Bank, National Association (the successor to lPMorgan Chase Bank) and its successors in that capacitY' The ternl "[ssuance Date" shall mean the date on which the Series 2006 Bonds are authenticated by the Registrar and delivered to and paid for by the Underwriter. The tenn "MA( 'It shall mean the Municipal Advisory Council of Texas. fhe tenll "MSRB" ..hall mean the Municipal Securities Rulemaking Board. -3. fhe tenn "\lRMSIR" shall mean each person whom the SEe or its staff has determined to be a nat ICmally recognized municipal securities information repository within the meaning of the Rule from'ime tn time ['he term "Paving Agent" shall mean the Registrar. The term "ProJect" shall mean the Improvements described in the Project and Financing Plan to be financed witn the proceeds of the Series 2006 Bonds. fhe term 'Purchase Contract" shall mean the Bond Purchase Agreement between the Corporation and the I Jnderwriter. executed under authority of this Resolution. !'he term "ReCOr(1 Date" shall mean, for any Interest Payment Date, the last Business Day of the month next preceding each Interest Payment Date rhe term "Registrar" shall mean lPMorgan Chase Bank, National Association, and its successors in that capacity. hereto rhe t enn "R eso lut Ion" shall mean t his resolution, and all amendments hereof and supplements Ihe tcnn "Rule" shall mean S1'( Rule l5c2-l2. as amended from time to time. The tenn "SE<'" shall mean the IJnited States Securities and Exchange Commission. rhe term "Series 2003 Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds. Series 200~. originally issued in the aggregate principal amount 01'$2,500,000. The tenn "Series 2003A Bonds" shall mean the Corporation's Tax Increment Contract Revenue Ronds. Series 2003A, originally issued in the aggregate principal amount of$2,500,000. lhe ternl "Series 2004 Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds. Series 2004. originally issued in the aggregate principal amount of$4, 100,000. The tenn "Senes 2006 Bonds" ,n "Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds, Series 2006. authorized by this Resolution. The term "SID" shall mean any person designated by the State of Texas or an authorized department, officer or agency thereof as, and detennined by the SEC or its staff to be, a state infOITnatlOn deposito!) within the meaning of the Rule from time to time. The term "Underwriter" shall mean M.E. Allison & Co.. Inc. -4- Section 2.2 Interpretations. All tenns defmed herein and all pronouns used in this Resolution shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Resolution have been inserted for convenience of reference only and are not 10 be considered a part hereof and shall not in any way modifY or restrict any of the terms or provIsions hereof ThiS Resolution and all the terms and provisions hereof shall be liberally construed to effectuate the purpose" set forth herein and to sustain the validity of the Parity Bonds and the validIl y ofthe hen on and pledge of the Pledged Revenues to secure the payment ofthe Parity Bonds. ARTICLE III fERMS OF THE BONDS )ectlOn 3.! MaxllllUm Amount, Purpose, Authorization. The Series 2006 Bonds shall be issued in fully registered form, without coupons, numbered consecutively from R -I upward, in the aggregate principal amount not to exceed $2,900,000 for the purpose of(l) paying Project Costs and (2) paying Costs of Issuance, all under and pursuant to the authority of the Act and aU other applicable lay,. None of the proceeds of the Series 2006 Bonds shall be used for the purpose of paying or otherwise provIding for educational facilities. Section 3.2 Sale of the Series 2006 Bonds. The Authorized Representative is hereby authorIzed to act for and on behalfofthe Corporation in connection with the issuance and sale of the Series 2006 Bonds In that capacitv. the Authorized Representative, acting for and on behalf of the Corporal Ion. shall Jetenlllne the date fin issuance and sale of the Series 2006 Bonds and shall approve. execute and deliver the Purchase C'ontract with t he Underwriter. Interest on the Series 2006 Bond" shall be payable on the date or dates described 10 the Purchase Contract (the "Interest Payment Dates") fhe Series 2006 Bonds shall bear mterest at the fixed rate or rates per annum calculated on the basis of a 360-day year of twelve 30-day months, as set forth in the Purchase Contract. There shall be :--el forth in the Purchase Contract the principal amount of the Series 2006 Bonds to be sold (in no event, however. to exceed the maximum principal amount authorized in Section 3.1 hereof), the price at which the Senes 2006 Bonds shall be sold. the principal amortization schedule for the Series 2006 Bonds (including, without limitation, the maturity date or dates for the Series 2006 Bonds (the "Principal Installment Payment Dates") and the designation of any ofthe maturities of the Senes 2006 Bonds as term bonds and any sinking fund payments to be deposited to the credit of the Debt Service Fund relating to any term bond so designated). the redemption features of the Series 2006 Bonds, the rate Of rates of interest to be borne by the Series 2006 Bonds, the Dated Date of the Series ~006 Bonds. ,md at her matters relating to the Issuance, sale and delivery of the Series 2006 Bonds. including, without limitation, the designation given to the Series 2006 Bonds and the obtainmg of insurance Of other [anTIs of credit enhancement with respect to the Series 2006 Bonds; provided that the Purchase Contract must provide for the Series 2006 Bonds to be sold on terms that produce II) interest rate or rates for t he Series 2006 Bonds in a multiple of 1/8 of I % or 1/20 of 1% or 1/100 uf I %, (Ii) a "net dfectlve mteresl rate" not in excess of 10.00%, (iii) a fmal maturity date of the Series 2006 Bonds that shall not extend beyond December 15.2022, and (iv) interest rates -5- such that the highest interest rate on any Series 2006 Bond does not exceed the lowest interest rate on such Series 2006 Bond~ by more than 4.00%. The Authorized Representative's approval of the Purchase Contract shall be conclusively evidenced by his or her execution thereof. Section 3.3. Execution of Series 2006 Bonds. The Series 2006 Bonds shall be signed on behalf of the Corporation by an Authorized Representative and countersigned by the Secretary by their manual, lithographed. or facsimile signatures. Such facsimile signatures on the Series 2006 Bonds shall have the same ,:ffect as if each of the Series 2006 Bonds had been signed manually and m person by each of saId, \fficers. I f any officer of the Corporation whose manual or facsimile signature shall appear on the Series 2006 Bonds shall cease to be such officer before the authentICation of such Senes 2006 Bonds or before the delivery of such Series 2006 Bonds, such manual O! facsimile signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained in such otIice Section 3.4: Approval By Attorney General; Registration by Comptroller. The Series 2006 Bonds to be initially Issued shall be delivered to the Attorney General of Texas for examination and approval and shall be registered by the Comptroller. By approving this Resolution, the City Council shall have authorized the payment of the tee of the Office of the Attorney General of the State of Texas Ifl[ the examinatIOn of the proceedmgs relating to the issuance of the Series 2006 Bonds on behalf of the Corporation,n the amount determined in accordance with the provisions of Section 1 202.004. Texas Go \ ernment Code. The manually executed registration certificate 0 fthe Comptro ller substantially in the toml provided in Exhibit A to this Resolution shall be affixed or attached to the Series 2006 Bonds to be imtially Issued and delivered to the Underwriter. Section 3.5 AuthenticatIon. Except for the Series 2006 Bonds to be initially issued, which need not be authenticated bv an authorized signatory of the Registrar, only such Series 2006 Bonds as shall bear thereon a certiticate of authentication substantially in the form provided in Exhibit A to this Resolution, manually executed by an authorized signatory of the Registrar, shall be entitled to the benefits of thiS ResolutIon or shall be valid or obligatory for any purpose. Such duly executed certificate of authentIcation shall be conclusive evidence that the Series 2006 Bond so authenticated was dehvered by the Registrar hereunder The Registrar, when it authenticates a Series 2006 Bond, shall cause the Dated Date to be stamped, typed or imprinted on such Series 2006 Bond. Series 2006 Bonds issued on transfer of or in exchange for other Serie~ 2006 Bonds shall bear the same Dated Date as the Series 2006 Bond or Series 2006 Bonds presented for transfer or exchange ~ctioQ.-1~ Pa~nt of Pri~i!.Land Interest. The Registrar is hereby appointed as the registrar and paying agent for the Series 2006 Bonds. The principal of the Series 2006 Bonds shall be payable, without exchange or collectIOn charges, in any coin or currency of the United States of America which. on the date dfpayment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they respectively become due and payable, whether at maturity or by prior redemption, at the Designated Trust Office. The interest on each Series 2006 Bond shall be payable by check payable on the Interest Payment Date, mailed by the Registrar on or before each Interest Payment Date to the Owner ofrecord as ofthe Record Date, to -fl- the address of such Owner as shown on the Register, or by such other method, acceptable to the Registrar. requested bv and at the risk and expense of the Owner. I fthe date for the payment ofprincipal or interest on any Series 2006 Bond is not a Business Day, then the date t()r such payment shall be the next succeeding Business Day, and payment on such date shall have the same force and effect as if made on the original date such payment was due. ?ectionLZ. Successor Registrars The Corporation covenants that at all times while any Series 2006 Bonds are Outstanding it will provide a commercial bank or trust company organized under the laws of the United States of America or State of Texas or other entity duly qualified and legally authorized to ad a~ Registrar for the Series 2006 Bonds. The Corporation reserves the right to change the Registrar for the Series 2006 Bonds on not less than sixty (60) days written notice to the Registrar. so long as any such notice IS effective not less than sixty (60) days prior to the next succeeding Principal Installment Payment Date or Interest Payment Date on the Series 2006 Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Register or a copy thereot to the new Registrar, and the new Registrar shall notifY each Owner, by United States maIl, tirst ,..:lass postage prepaid, of such change and of the address of the new Regislral Each Registrar hereunder. hy acting in that capacity, shall be deemed to have agreed to the prnVISlons of thIs Sect i\ 1Il. Section 3X Special Record Date. If interest on any Series 2006 Bond is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Registrar shall establish a new record date for the payment ofsuch interest, to be known as a "Special Record Date." fhe RegJstrar shall establish a Special Record Date when funds to make such interest payment are received !Tom OJ on behalf of the Corporation. Such Special Record Date shall be fifteen (15) days prior 10 the date fixed tor payment dfsuch past due interest, and notice of the date of payment and the SpeCIal Record Date shall be sent by tnited States mail, first class postage prepaid, not later than five (5 I days prior to the Special Record Date, to each Owner or record of an affected Series 2006 Bond as "rthe close 01 business on the day prior to the mailing of such notice. Section 3.9: Ownership; Unclaimed Principal and Interest. Subject to the further provisions of this Section, the Corporation. the RegIstrar and any other person may treat the person in whose name dn: Senes 2006 Bond is registered as the absolute Owner of such Series 2006 Bond for the purpose llfmaking and receiving payment of the principal 01'01' interest on such Series 2006 Bond, and for all other purposes. whether or not such Series 2006 Bond is overdue, and neither the Corporation nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Owner of any Series 2006 Bond in accordance with this Section 3.9 shall be valid and effectual and shall discharge the liability of the Corporation and the Registrar upon such Series 2006 Bond to the extent of the sums paid. t\mounts heid by the Registrar which represent principal of and interest on the Series 2006 Bonds remaining unclaimed by the Owner after the expiration of three (3) years from the date such -7- amounb have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of the Paying Agent Agreement. Section 3.10: Registration, Transfer, and Exchange. So long as any Series 2006 Bonds remam Outstanding, the Registrar shall keep the Register at the Designated Trust Office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transkr ()fSeries 200h Bonds in accordance with the terms of this Resolution. Each Series 2006 Bond shall be transferable only upon the presentation and surrender thereof at the Designated Trust Office of the Registrar, duly endorsed for transfer, or accompanied by an assignment duly executed by the Registered Owner or his authorized representative in form satisfactory to the Registrar. Upon due presentation of any Series 2006 Bond in proper form for transfer. the Registrar shail authenticate and deliver in exchange therefor, within three (3) Business Days after such presentation, a ne\\ Series 2006 Bond or Series 2006 Bonds, registered in the name of the transferee or transferees, III Authorized Denominations and of the same maturity, aggregate principal amount, and Dated Date. and bearing interest at the same rate as the Series 2006 Bond or Series 2006 Bonds so presented Anything to the contrary herein notwithstanding, no Series 2006 Bond ...hall be issued in a denomination of less than $100,000. All SerIes 2006 Bonds shall be exchangeable upon presentation and surrender thereof at the Designated Trust Office of the RegIstrar for a Series 2006 Bond or Series 2006 Bonds of the same maturll y. Dated Date, and mterest rate and in any Authorized Denomination, in an aggregate amount equal 10 the unpaid principal amount of the Series 2006 Bond or Series 2006 Bonds presented for exchange The Registrar shall be and is hereby authorized to authenticate and deliver exchange Series 2006 Bonds in accordance '.vith the proviSIons ofthis Section 3.10. Each Series 2006 Bond delivered 111 accordance with this Section 3.10 shall be entitled to the benefits and security of this Resolution to the same extent as the Series 2006 Bond or Series 2006 Bonds in lieu ofwhich such Series 2006 Bond is delivered The Corporation or the RegIstrar may require the Owner of any Series 2006 Bond to pay a sum suffiCIent to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange of such Series 2006 Bond. Any fee or charge of the Registrar for such transfer or exchange shall he paid by the ('orporation [he Registrar shall not be required to transfer or exchange any Series 2006 Bond during the period begirming on a Record Date or a Special Record Date and ending on the next succeeding Interest Payment Date or to transfer or exchange any Series 2006 Bond called for redemption during the perIod beginning thIrty days prior to the date fixed for redemption and ending on the date fixed for redemption; prO\ Ided, however. that this limitation shall not apply to the exchange by the Owner of the unredeemed portion ofa Series 200h Bond called for redemption in part. Section 3.11. Cancellation of Series 2006 Bonds. All Series 2006 Bonds paid or redeemed III accordance with this Resolution, and all Series 2006 Bonds in lieu of which exchange Series 2006 -R- Bonds or replacement Series 2006 Bonds are authenticated and delivered in accordance herewith, shall be canceled and thereafter 1 reated in accordance with the Registrar's document retention poliCies SectIOn 3.] 2: Mutilated, Lost, or Stolen Series 2006 Bonds. Upon the presentation and surrender to the Registrar of a mutilated Series 2006 Bond, the Registrar shall authenticate and deliver in exchange thereJ()r a replacement Series 2006 Bond oflike maturity, Dated Date, interest rate and principal amo unt. beanng a number not contemporaneously Outstanding. The Corporation or the Registrar may reqUIre the Owner of such Series 2006 Bond to pay a sum sufficient to cover any t,1'\ lr other governmental charge tbat may be Imposed in connection therewith and any other expense'- connected therewith, mcluding the fees and expenses of the Registrar. II any Series 2006 Bond is lost, apparently destroyed, or wrongfully taken, the Corporation, pursuant to the applicable Jaws of the State of Texas and in the absence of notice or knowledge that such Senes 2006 Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and deliver a replacement Series 2006 Bond oflike maturity, Dated Date, interest rate and principal amount. bearing a number not contemporaneously Outstanding, provided that the Ov,'nel therenf"hall have ( i furnished t,i the Registrar satisfactory eVIdence of the ownership of and the c ircum.qances ofthe loss. destruction or theft of such Series 2006 Bond; (') furnIshed such security or mdemmty as may be required by the Registrar to save it and the Corporation harmless: (\ ) paid al1 expenses and charges in connection therewith, including, but not Immed 10, printing costs. legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed: and (4) met any otner reasonable requirements of the Corporation and the Registrar. If, after the delivery of such replacement Series 2006 Bond, a bona fide purchaser of the original Series 2006 Bond in lieu,)f which such replacement Series 2006 Bond was issued presents for payment such origmal Senes 2006 Bond, the Corporation and the Registrar shall be entitled to recover such replacement Series 2006 Bond from the person to whom it was delivered or any person taking therefrom. except a bona fide purchaser, and shall be entitled to recover upon the security or mdemmt) provided lheref('f to the extent of any loss, damage, cost or expense incurred by the CorporatJon or the Reglstrar in connection therewith. I f any such mutIlated, lost, apparently destroyed or wrongfully taken Series 2006 Bond has hecome or is about to become due and payable, the Corporation in its discretion may, instead of Issuing a replacement Series 2006 Bond. authorize the Registrar to pay such Series 2006 Bond. -9- Each replacement Series 2006 Bond delivered in accordance with this Section 3.12 shall be entitled to the benefit~ and security of this Resolution to the same extent as the Series 2006 Bond or Series 2006 Bonds in lieu of which such replacement Series 2006 Bond is delivered. Section 3.13: Redemption. The Series 2006 Bonds are subject to redemption under the conditions, on the dates, and for the redemption prices set forth in the Purchase Contract, which shall be incorporated mto the Form of Bond set forth in Exhibit A hereto. Ifless than all of the Series 2006 Bonds are to be redeemed. the Corporation shall determine the particular Series 2006 Bonds or portIOns thereof to be redeemed. Principal amount~ may be redeemed only in integral multiples of $5,000. If a Series 2006 Bond subJect to redemption is in a denommation larger than $100,000, a portion of such Series 2006 Bond may be redeemed, but only in integral multiples of $5,000 and so long as the unredeemed portion ufany Series 200h Bonds so redeemed in part is not less than $100,000. Upon surrender of any Senes 2006 Bond for redemption in part, the Registrar, in accordance with Section 3.10 hereof, shall authentIcate and delIver in exchange therefor a Series 2006 Bond or Series 2006 Bonds of like matunt:. Dated Date. and interest rate in an aggregate principal amount equal to the unredeemed portIOn \l f the Series :'OOh Bond S( I surrendered. nless waived by the Owner, notice of any redemption identifYing the Series 2006 Bonds to be redeemed in whole or ill part shall be given by the Registrar at least thirty (30) days prior to the date fixed for redemptJon hy sending written notice by United States mail, first class postage prepaid, to the Owner of each Senes 2006 Bond to be redeemed in whole or in part at the address shown on the Register. Such notices shall state the redemption date, the redemption price, the place at which Serie~ 2006 Bonds are to be surrendered for payment and, if less than all Series 2006 Bonds Outstanding of a particular maturity are to be redeemed, the numbers of the Series 2006 Bonds or portions thereofofsuch maturity to be redeemed. Any notice given as provided in this Section 3.13 shall be conclusively presumed to have been duly given, whether or not the Owner receives such notice By the date fixed t< lr redemption, due provision shall be made with the Registrar for payment of the redemption price of the Series 2006 Bonds or portions thereof to be redeemed, plus accrued interest 10 the date fixed filr redemption. When Series 2006 Bonds have been called for redemption in whoIc or 111 part and due proviSIOn has been made to redeem the same as herein provided, the Series 2006 Bonds or portIons thereof so redeemed shall no longer be regarded as Outstanding except for the purpose of receiving payment solely from the funds so provided for redemption, and the rights of the Owners to collect interest which would otherwise accrue after the redemption date on any Series 2006 Bond or port IOn thereof called for redemption shall terminate on the date fixed for redemptlOn. Should ownership, lfthe Senes 2006 Bonds be established in accordance with the book-entry- only system ofThe Depository Trust Company (ltDTClt), the Paying Agent for the Series 2006 Bonds shall notify DTC that in the exercise by DTC of the selection of Series 2006 Bonds for redemption, the Series 2006 Bonds shall be so selected by DTC in such a manner that no beneficial owner of Series 2006 Bonds shall own less than $100.000 in principal amount of any Series 2006 Bonds of any one maturIty -10- Sectlon 3. ]4: Lunited Obli~ations. THE SERIES 2006 BONDS ARE A LIMITED OBLlGA TION OF THI CORPORA nON, PAYABLE SOLELY, TOGETHER WITH THE CURRENTLY OUTSTANDING PARITY BONDS, OUT OF THE TRUST ESTATE, WHICH IS THE S( )LF ASSET OF THE CORPORATION PLEDGED THEREFOR. THE SERIES 2006 BONDS ARE OBLIGATIONS SOLELY OF THE CORPORATION AND DO NOT CONSTITUTE, WITHIN THEMEAN]NG OF ANY STATUTORY OR CONSTITUTIONAL PROVISION. AN INDEBTEDNESS. <\N OBLIGATION OR A LOAN OF CREDIT OF THE crn OF CORPUS ('HRISTL THE 51 ATE OF TEXAS, NUECES COUNTY, TEXAS, DEL MAR COLLEGE NUFCES COUNTY HOSPITAL DISTRICT. REINVESTMENT ZONE NUMBER TWO. CITY OF CORPUS CHRISTI. TEXAS, OR ANY OTHER MUNICIPALITY, COU NTY, OR OTHE R r-,1 UNICIP AL OR POLITICAL CORPORATION OR SUBDIVISION OF THE STATE OF rEXAS NEITHER THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS DEL MAR COLLE<iE. NUECES COUNTY HOSPITAL DISTRICT NOR REINVI'STMfNT LONl: NUMBER TWO. CITY OF CORPUS CHRISTI, TEXAS ARE OBLIciATED n) MAKE PAYMENTS ON THE SERIES 2006 BONDS OR THE OUTST\NDING PARITY BONDS, \RTlCLE IV FORM OF SERlES 2006 BONDS AND CERTIFICATES -..------------. Section 4,1. Form", The form of the Series 2006 Bonds, including the form ofthe Registrar's authentication certiticate. [he fiJm1 of aSSIgnment, and the form of the Comptroller's Registration Certificate for the Series 2006 Bonds to be mitially issued. shall be in substantially the form as set forth In Ixhihit '\ 1\) thiS Resolutioll, ~~ction 4,2, Legal Opinion; CUSIP Numbers; Bond Insurance. The approving opinion of Bond Counsel and CUSIP Numbers may be printed on the Series 2006 Bonds, but errors or omissions m the printing of such opmion or such numbers shall have no effect on the validity of the Series 2006 Bonds, Ifbond insurance IS obtained by the Underwriter. the Series 2006 Bonds may bear an appropriate legend as provided bv the insurer. '\RTICLE V ADDITIONAL BONDS ~ection 5.:l AdditIonal Panty Bonds. The Corporation reserves the right to issue, for any lawful purpose (including the refunding of any previously issued Parity Bonds), one or more series of Additional Parity Bonds payable from and secured by a first lien on the Pledged Revenues, on a parity with the Series 2003 Bonds, the Senes 2003A Bonds, the Series 2004 Bonds and the Series 2006 Bonds; provided, however, that Additional Parity Bonds may be issued only in accordance with the proviSIons of Article III of the Indenture. Section 5.2. Subordinate Lien Obligations. The Corporation reserves the right to issue, for any la\\'ful purpose, Subordinate Lien Obligations secured in whole or in part by liens on the Pledged Revenues that are junior and subordinate 10 the lien on Pledged Revenues securing payment of the -11- Parity Bonds. Such Subordinate Lien Obligations may be further secured by any other source of payment lawfully available for such purposes. Section 5.3: Reserve Fund. No Reserve Fund has been established for the benefit of the Series 2006 Bonds The Corporation reserves the right to establish a Reserve Fund for the benefit of the Senes 2003 Bonds, the Series 2003/\ Bonds, the Series 2004 Bonds, the Series 2006 Bonds or any .\dditional Panty Bonds. Section 5.4' Representations Regarding Series 2006 Bonds Issued as Additional Parity Bonds. The (orporation hereby represents that i a) The Series 2006 Bonds mature on, and interest is payable on, the Principal Installment Payment Dates and Interest Payment Dates. respectively; and 'b) The Corporation is not in material default with the terms of the Indenture, any Bond Resolution. the Tri-Party Agreement or any other agreement to which it is a party. The ( orporation further represents that upon the issuance of the Series 2006 Bonds, the aggregate prinClpai amount of Parily Obligations issued by the Corporation to fund Project Costs will not exceed S 12.000.000. and therefore the Corporation is not required to satisfY the requirements of subsections (c) or (d) of Section 3 2 of the Indenture with respect to the issuance of the Series 2006 Bond" ARTICLE VI GENERAL COVENANTS ;-iection 6. j. Punctual Payment of Parity Bonds. The Corporation will punctually payor cause to be paid the interest on and principal of all Parity Bonds according to the terms thereof and will faithfully do and ped()ITn, and at all times fully observe, any and all covenants, undertakings, stipulations and provisions contained in this Resolution and in any resolution authorizing the issuance of AdditIOnal Parity Bonds ;-;echon 6.2: Maintenance ofTIRZ Two. So long as any Parity Bonds remain Outstanding, the Corporation covenants that it will, within the limits of its authority, comply with all contractual proviSions and agreements entered mto by it and with all valid rules, regulations, directions or orders of any go vernmental, admmistrative, or judicial body promulgating same, noncompliance with which would materially and adversely affect the operation ofTlRZ Two. SectiOn 6.3: Accounts, Records, and Audits. So long as any Parity Bonds remain Outstanding, the Corporation covenants and agrees that it will maintain a proper and complete system of records and account s pertaining to the operation ofTlRZ Two and the Corporation in which full, true and proper entries will be made of all dealings, transactions, business and affairs which in any way affect or pertain to TIRZ Two, the Corporation or the Pledged Revenues. The Corporation shall after the close of each Fiscal Year cause an Audit to be prepared by an independent certified public -12- accountant or independent firm of certified public accountants. All expenses incurred in preparing Audits shall be maintenance and operation expenses. )echon 6.4: Pledge and Encumbrance of Pledged Revenues. (a) The Corporation covenants and represents that it has the lawful power to create a lien on and to pledge the Pledged Revenues to secure the payment of the Parity Bonds and has lawfully exercised such power under the ConstItutIOn and laws of the State of Texas The Corporation further covenants and represents that, other than to the payment of the Parity Honds, the Pledged Revenues are not and will not be made subject to any other lien pledge or encumbrance to secure the payment of any debt or obligation of the C 'rporatloH, unless such lien, pledge or encumbrance is junior and subordinate to the lien and pledge securing payment ,fthe Parity Bonds. (b) The proviSIons of subsection (a) of this Section 6.4 notwithstanding, the lien on, pledge ot: and TIghts in and to the Pledged Tax Increments established, made, and granted in the Indenture and pursuant to subsection (a) of this Section 6.4 shall constitute a first and senior lien thereon, subject only to the rights. if any, of the holders of bonds or other obligations that have been heretofore or are hereafter Issued b) a Participant that are payable from and secured by a general levy of ad \ aiorem taxes throughout the taxing jurisdiction of the Participant. (L I Each of the Participants has agreed to contribute its Contract Tax Increment to the Tax Increment Fund, In accordance WIth the Act and its Participant Contract, and that each of the PartiCIpants, other than the District has agreed to contribute and is currently contributing as its Contract rax Incrernent 1(10% of its Tax 1ncrement. Each of the Participants, other than the District, has agreed to contribute its Contract Tax Increment to the Fund for the term of the Zone, which is scheduled to expire on December :< 1. 2022. 1n the District Agreement, the District has agreed to contribute 100Cl,o of its Contract Tax Increment to the Fund in the first five years of the District A.greement. xoo'o of its (ontract fax Increment to the Fund in the sixth year of the District A.greement, 6000 uf ih Contract 1 ax Increment to the Fund in the seventh year of the District Agreement, 4000 t)f its (nntract Tax Increment to the Fund in the eighth year of the District Agreement, lOoo (l r 11 s (ontract Tax 1 ncrement to the Fund in the ninth year of the District Agreement. with such obligation oflhe District ending after the ninth year of the District Agreement. The Curporatlon will use reasonable eHorts to cause the Participants to levy and annually assess and collect ad valorem taxes at such rates and amounts as may be necessary and required to pay in full and on a lImely basis all debt service reqUIrements on each Participant's respective outstanding bonds or other obligatIOns that are payable in whole or in part from and secured by a general levy of ad valorem taxes throughout "uch Participant without resort to the use of any portion of the Contract Tax Increment denved from the tax collectIOns of such Participants for such purpose, and to cause the portion of such taxes representing Contract Tax Increments to be paid to the Tax Increment Fund. Section ().5 Owners' Remedies rhis Resolution shall constItute a contract between the -. -..- - CorporatIon and the Owners of the Parity Bonds from time to time Outstanding and this Resolution shall be and remain Irrepeaiable until the Parity Bonds and the interest thereon shall be fully paid or discharged or proVISion therefor shall have been made as provided herein. In the event ofa default m the payment of the principal 01 or Ulterest on any of the Parity Bonds or a default in the performance of any dUlv 0: covenant proVIded by law or in this Resolution, the Owner or Owners -13- of an v olthe Panty Bonds may pursue all legal remedies afforded by the Constitution and laws of the State of Texas to compel the Corporation to remedy such default and to prevent further default or defaults Without 111 allY '0 ay limiting the generality of the foregoing, it is expressly provided that any Owner uf any of the Panty Bonds may at law or in equity, by suit action, mandamus, or other proceedmgs. enforce and compel performance of all duties required to be performed by the Corporation under this Resolution, the deposit of the Pledged Revenues into the special funds herein provIded. and the applical Ion of such Pledged Revenues in the manner required in this Resolution. The flJregoing not withstanding, acceleration ofthe Parity Bonds is not an available remedy. The sole source 0 (the CorporatIon available for the payment of debt service on the Bonds is and shall be the Pledged Revenues ~ection 6.{J. DIscharge by Deposit. The Corporation may discharge its obligation to the Owners uf any or all of the Parity Bonds to pay principal, interest and redemption premium (if any) thereon In any manner then pem-litted hy law, including, but not limited to, by depositing with any paying agent fin such Panty Bonds either (i) cash in an amount equal to the principal amount and redemptIon premium. if any, of such Parity Bonds plus interest thereon to the date of maturity or redemptlOn, or (il) pursuant to an escrow or trust agreement, cash and/or direct noncallable, nonprepayable obhgatlOns of the United States of America, ill principal amounts and maturities and bearing Interest at rates sufficient to proVide for the timely payment of the principal amount and redemptIOn premium. ;f any, of such Parity Bonds plus interest thereon to the date of maturity or redemption; provided. hO\vever. that if any of such Parity Bonds are to be redeemed prior to their respect 1\ e dates of maturity, proVIsion shall have been made tor giving notice of redemption as provided III the reSOlution authorizing such Parity Bonds Upon such deposit, such Parity Bonds shall no longer he regarded 10 he Outstanding or unpaid. Section (). 7 Registrar and Trustee May Own Parity Bonds. The Registrar and Trustee for the Pant\ Bonds. III their corporate or any other capacity, may become holders or pledges of the Parity Honds with the same rights they would have if they were not the Registrar or Trustee. Section 6.8. No Recourse Agamst Corporation Officials. No recourse shall be had for the payment of principal of or interest on any Parity Bonds or for any claim based thereon or on this Resolution against any ofticial of the Corporation or any person executing any Parity Bonds. No member dl' the Board 01 Directors of the Corporation or any officer, agent, employee or representatIve of the Corporation in his individual capacity, nor the officers, agents, employees or representatives of the Corporation nor any person executing the Series 2006 Bonds shall be personally liable thereon or be subject to any personal liability or accountability by reason of the Issuance thereot~ whether b\ virtue of any constitution, statute or rule ofIaw, or by the enforcement of any assessment or penalt v, or otherwtse. all such liability being expressly released and waived as a condItIon of and in consideration for the adoption of this Resolution and the issuance of the Series 2006 Bonds. S~ctloniJ..:2: Punctual Payment of Contractual ObligatIons. The Corporation will punctually payor cause to be paid any payment obligations made by the Corporation under the terms of a contract hereafter executed and delivered by the Corporation of the nature described in Section 5.2. -14- ARTICLE VII PROVISIONS CONCERNING SALE AND APPLICATION OF PROCEEDS OF SERIES 2006 BONDS Section 7. j : Execution of Documents to Effect Sale of Series 2006 Bonds. Each Authorized Representative and other appropriate ot11cers, agents and representatives of the Corporation are hereby authorized to do any and all things necessary or desirable to provide for the issuance and delivery ufthe Series 200h Bonds Section 7.2. mmhcation of Proceeds. Proceeds from the sale of the Series 2006 Bonds shall, promptly upon receIpt by the Trustee, be applied in the manner provided for in a certificate executed by an Authorized Representative. Proceeds from the sale of the Series 2006 Bonds representing prerruum. If any. paid hy the Underwriter in connection with the sale of the Series 2006 Bonds may be used Illr any purpose authorized by Section 120] .042(d), Texas Government Code, as directed m a ceridicate executed b\ an AuthorizeLl Representative. ARTICLE VIII TAX EXEMPTION Section ~. I: General Tax Covenants. The Corporation covenants to refrain from any action which would adversely affect, or to take any action to assure, the treatment of the Series 2006 Bonds as obhgatIOns described in section ]03 of the Code, the interest on which is not includable in the "gross mcome" of the holder for purposes of federal income taxation. In furtherance thereof, the Corporat Ion covenants as 101l0ws: (a) i 0 take any action to assure that no more than] 0 percent of the proceeds of the Series 2006 Bonds or the projects tlnanced therewith (less amounts deposited to a reserve fund, ifany) are used for any "private business use", as defmed in section 141(b)(6) of the Code or, ifmore than 10 percent of the proceeds are so used, that amounts, whether or not received by the Corporation, with respect to such private business use, do not, under the terms of this Ordinance or any underlying arrangement, directly or indirectly, secure or pruvide lor the payment of more than] 0 percent of the debt service on the Series 2006 Bonds. in contravention of section 141(b)(2) of the Code; (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent ofthe proceeds ofthe Series 2006 Bonds or the projects financed therewith (less amounts deposited into a reserve fund, if any) then the dl110unt in excess 01 5 percent is used for a "private business use" which is "related" and not 'disproportlonate". within the meaning of section 141(b )(3) of the Code, to the governmental lIse! -] 5- (c I to take any action to assure that no amount which is greater than the lesser of y'i,OOO,{){)O. or 5 percent of the proceeds of the Series 2006 Bonds (less amounts deposited 'tHO;j reserve lund, ifany), is directly or indirectly used to finance loans to persons, other than ,tate or local governmental units. m contravention of section 141(c) of the Code; (d I to refram from taking any action which would otherwise result in the Series 2006 Bonds being treated as "pnvate activity bonds" within the meaning of section 141(a) of !he ( ode: (e i to refram from takmg any action that would result in the Series 2006 Bonds 11eing "tederally guaranteed" within the meaning of section ] 49(b) of the Code; (f) to refrain from using any portion of the proceeds of the Series 2006 Bonds, directly or mdrrectly. to acquire or to replace funds which were used, directly or indirectly, to acqurre lI1vestment property (as defined in section ]48(b )(2) of the Code) which produces I materially hIgher yield over the term of the Series 2006 Bonds, other than investment property acqUired with.- i I proceeds 0 fthe Series 2006 Bonds invested for a reasonable temporary penod of three years or less until such proceeds are needed for the purpose for which [he Senes 2006 Bonds are issued, (2 amounts invested in a bona fide debt service fund, within the meaning ,)fsection 1.148-I(b) of the Regulations. and (3 amounts deposited in any reasonably required reserve or replacement fund to th;.;" extent such amounts do not exceed 10 percent of the proceeds of the Series 2006 Bonds: I g I to <ltherwise restrict the use of the proceeds of the Series 2006 Bonds or amounts treated as proceeds of the Series 2006 Bonds, as may be necessary, so that the Series 2006 Bonds do 1I0t otherwise contravene the requirements of section 148 of the Code (relatmg to arbitrage) and. to the extent applicable. section 149( d) of the Code (relating to advance refundings); and I. h) to pay to the Umted States of America at least once during each five-year period (begrrmmg on the date of delivery of the Series 2006 Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section 148(f) of the ('ode and to pay to the United States of America. not later than 60 days after the Series 2006 Bonds have been paid in fulL 100 percent of the amount then required to be paid as a result of Excess Faming" under section 148(f) of the Code. The ( orporation understands that the term "proceeds" mcludes "disposition proceeds" as defmed in the Treasury Regulations and, in the case of a refunding bond, transferred proceeds (if any) and proceeds of the refunded honds expended prior to the date of the issuance of the Series 2006 Bonds. It is the understanding of the Corporation that the covenants contained herein are intended to assure -16- compllance with the Code and any regulations or rulings promulgated by the U.S. Department of the Treasurv pursuant theretn In the event that regulations or rulings are hereafter promulgated which modily oJr expand provisions of the Code. as applicable to the Series 2006 Bonds, the Corporation will not be required to comply with any covenant contained herein to the extent that such failure to comply. ill the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from tederal mcome taxation of interest on the Senes 2006 Bonds under section 103 of the Code. In the ,;,vent that regulations or rulings are hereafter promulgated which impose additional reqUirements which are applicable to the Series 2006 Bonds, the Corporation agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counseL to preserve the exemption from federal income taxation of interest on the Series 2006 Bonds under section 103 of the (ode. In lurtherance of the foregoing, any Authorized Representative may execule ,my certificates or other reports required by the Code and to make such elections, on behalf of the C llrporatlOlL which may be pennitted by the Code as are consistent with the purpose for the Issuance of the Senes ~)00t1 Bonds. In order to facilitate compliance with the above clause (h), there has been estabhshed in the lndenture a "Rebate Fund" for the sole benefit of the United States of Amenca. and such Rebate Fund shall not be subject to the claim of any other person, including without lumtation the Registered Owners of the Series 2006 Bonds. The Rebate Fund is established tor the additIOnal purpose ofcomplianee \vith section 148 of the Code. Section 8.2. AHocation of: and Limitation on, Expenditures for the Project. The Corporation covenants to account It)]' on its books and records the expenditure of proceeds from the sale of the Series 2006 Bonds and an:v investment earnings thereon to be used for the payment of Project Costs by allocatmg proceeds to expenditures \vithin I H months of the later of the date that (a) the expenditure on a Project is made ur ib) each such Project is completed. The foregoing notwithstanding, the Corporation shall not expend such proceeds or investment earnings more than 60 days after the later uf(a j the fifth anniversary of the date of delivery of the Series 2006 Bonds or (bl th\:., date the Series 2006 Bonds are retired. unless the Corporation obtains an opinion of nationallv-recognized bond counse1'mbstantially to the effect that such expenditure will not adversely affect the tax-exempt statu" of the Series 2006 Bonds. For purposes ofthis Section, the Corporation shall not be obligated to comply with this covenant ifit obtains an opinion of nationally-recognized bond l.outlsel to the et1ect that such failure to comply will not adversely affect the excludability for federa I lIlcome tax purposes from gros:.. income 0 r the interest. Section tI. 3: Pisposltion of Project . The Corporation covenants that the property constituting a ProJecI will not be sold or otherwise disposed in a transaction resulting in the receipt by the Corporation of cash or other compensation. unless the Corporation obtains an opinion ofnationally- recogmzed bond counsel substantially to the effect that such sale or other disposition will not adversely affect the lax-exempt status of the Series 2006 Bonds. For purposes of this Section, the portion of the propertv cc.mprising personal property and disposed of in the ordinary course of busmessshall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes ofthi" Section, the Corporation shall not be obligated to comply with this covenant if It obtams an opinion of natlonally-recogmzed bond counsel to the effect that such failure to comply will not adversely at1ecl the excludability fbr federal income tax purposes from gross income of the Illterest on the Series 2006 Bonds. - 17- ,\RTICLE IX CONTINUING DISCLOSURE UNDERTAKlNG Section I) .1. Annual Reports. (a) That the Corporation shall provide annually, within six months after the end of each Fiscal Year ending in or after 2006, financial information and operating data with respect to the Corporation of the general type described in Exhibit B hereto provided that such mformation and data IS customarily prepared by the Corporation. Such information shall be provided to any person upon request made to the Corporation provided that the Corporation reserves the right at any time to commence making such annual filings with the SID (if any, and if none, to each N RMSIR) in lieu of providing such information upon request. Any fmancial statements so to be provided shall be \ 1 ) prepared in accordance with the accounting principles described in Exhibit B hereto or such other accounting principles as the Corporation may be required to employ from time to time pursuant to state law or regulation, and (2) audited, if the Corporation commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audIt of such tInancial statements is not complete within such period, then the Corporation shall provide unaudited fInancial statements by the required time and shall provide audited [mancial -;tatement~ tor the applicable Fiscal Year to each NRMSIR and any SID. when and if the audit report on such statements hecl)mt available I b) If the CorporatIon changes its Fiscal YeaL it will notifY the SID of the change (and of the date ot the nevv Fiscal '{ ea: end) pnor to t he next date by which the Corporation otherwise would be requ !fed to provide financial infonnation and operating data pursuant to this Section. The financial mformation and operating data to be proVided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reterence to any document (including an official statement or other o1fering document. if It IS available from the MSRB) that theretofore has been provided to the SID .)f tiled with the SFC Section 9.2: Matenal Event Notices. The Corporation shall notifY any SID and the MSRB, In a timely manner. of any oft he following events with respect to the Series 2006 Bonds, if such event IS matenal within the meanmg of the federal securities laws: J . Prinllpal and mtereSI payment delinquencies; 2. Non-payment related defaults; 3. l nscheduled draws on debt service reserves reflecting [mancial difficulties; 4. lnscheduled draws on credit enhancements reflecting fmancial difficulties; 'i Substitution of credit or liquidity providers, or their failure to perform; 6 Adverse tax opinions or events affecting the tax-exempt status of the Series 2006 Bonds; 7 ivIodilications to rights of holders of the Series 2006 Bonds; x Series 2006 Bond calls; \). Defeasances; 10 Release, substitutton, or sale of property securing repayment of the Series 2006 Bonds; and I I Rating changes. -I ~- The torporation shall notify any SID and the MSRB, in a timely manner, of any failure by the Corporation to provide financial information or operating data in accordance with Section 9.1 by the time required by such Section. Any filing under this Section may be made solely by transmitting such filing to the MAC as provided at http::/www.disc1osureusa,org, unless the SEC has withdrawn the interpretive adv ice staled III its letter to the MAC dated September 7. 2004. Section 9.3 Lll1litations, Disclamlers, and Amendments. (a) The Corporation shall be obligated to observe and perform the covenants specified in this Article for so long as, but only for so long as. the Corporation remains all "obligated person" with respect to the Series 2006 Bonds within the meaning of tht, Rule. except that the Corporation in any event will give notice of any deposit made in accordance with thiS Resolution or applicable law that causes Series 2006 Bonds no longel to be Outstandlllg. (h) The provlSJons of this Article are for the sole benefit of the holders and beneficial owners of the Series 2006 Bonds. and nothing in this Article, express or implied, shall give any benefit or any legal or equitable nght. remedy, or c lainl hereunder to any other person. The Corporation undertakes to pwvide only the financal int()mlation, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide any other mtormation that may be relevant or material to a complete presentation of the Corporation's finanCial results. condition or prospects or hereby undertake to update any information provided in accordance with thiS AI1icle or otherwise, except as expressly provided herein. The Corporation does not make any representation or wan'anty concerning such information or its usefulness to a decision to invest III or sell Series 2006 Bonds at anv future date (ll UNDER 1\0 ('IRCUMSTANCES SHALL THE CORPORATION BE LIABLE TO THE HOLDER OR BENl,FICIAL OWNER OF ANY SERIES 2006 BOND OR ANY OTHER PERSOK IN CONTRACT OR TORT. FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH B'{ THE CORPORATION. WHETHER NEGLIGENT OR WITHOUT FAUL r ()N ITS PART, OF ANY (:OVLNANT SPECIFIED IN THJS ARTICLE, BUT EVERY RIGH r i\ND REMEDY ()F ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT Of ANY SUCH BREACH SHALL BE LJMITED TO AN ACTION FOR MANDAMUS OR SPi-eIFIC PERFORMANCE id) No default bv the Corporation m observing or performing its obligations under this Article shall co mprise a breach of or default under this Resolution for purposes of any other provision ofthis Resolution. Nothmg in thi~ Article is intended or shall act to disclaim, waive, or otherwise limit the duties ufIhe Corporation under tederal and state securities laws \ e) The provisions of this AJ1icle may be amended by the Corporation from time to time to adapt to L'hanged circumstances that arise trom a change in legal requirements, a change in law, or a change III the identity. nature, status, or type of operations of the Corporation, but only if(1) the provisions of this Article. a.s so amended. would have pennitted an underwriter to purchase or sell -19- Series 2006 Bonds Ul the primary ot1ering of the Series 2006 Bonds in compliance with the Rule, taking into account any amendments or mterpretations of the Rule since such offering as well as such changed circumstances and (2) either (A) the holders ofa majority in aggregate principal amount (or any greater amount requITed by ~.llly other provision of this Resolution that authorizes such an amendment) of the outstanding Series 2006 Bonds consent to such amendment or (B) a person that is unaffiliated with the Corporation (such as nationally recognized bond counsel) determines that such amendment will nol materially impair the interest of the holders and beneficial owners of the Series 2006 Bonds I f the ( orpnration so amends the proVisions of this Article, it shall include with any amended financial mfonnation or ()peratmg data next provided in accordance with Section 9.1 an explanation, III narratlve torm. of the reason for the amendment and of the impact of any change in the type offinancia] intonnation or operatmg data so provided. The Corporation may also amend or repeal the proviSIOns of this contmuing disclosure agreement if the SEe amends or repeals the applicable pro\ ision 0 r th~~ Rule or a court of final jurisdiction enters judgment that such provisions of the Rule dre lI1\alicL but only If and to the extent that the provisions of this sentence would not prevent ,m underWriter &(>m lawfully purchasing or sellmg Series 2006 Bonds in the primary offering of the Senes 2000 Bonds ARTICLE X APPROV At AND AFFIRMATION OF AGREEMENTS rhe Board hereby approves issuance of the Series 2006 Bonds. The Board heretofore has approved the Indenture and the Tri-Party Agreement, and does hereby affirm that the Indenture and the Tn-Party Agreement each apply to the Series 2006 Bonds. The Board hereby represents that no amendments or supplements have been made to either the Indenture or the Tri-Party Agreement since the date of delivery of the Series 2004 Bonds. In connection with the issuance of the Series 2006 Bonds. the Board hereby approves the f()llowing: the Payillg Agent Agreement by and between the Corporation and JPMorgan Chase Bank, National Association, in substantially the form attached hereto as Exhibit (. and the Purchase Contract, in substantially the fonn attached hereto as Exhibit D: and any and all \)ther documents and agreements reasonable and necessary to issue the Bonds (collectively. the "Agreements"). The Board, by a majority vote of its members, at a meeting duly held fm such purpose, hereby approves the form terms, and provisions of the Agreements and authOrizes the executIon and delivery of the Agreements. ARTICLE Xl MISCELLANEOUS Section I I. j: Further Proceedings. The President any Vice President, the Executive Director. the Secretary. the Assistant Secretary and other appropriate officials of the Corporation are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the mtent, purposes and terms ()fthis ResolutlOn, including the execution and delivery of the Agreements and such certificates, documents or papers deemed necessary and advisable in connection with the deliverv 0 f the Series 2006 Bonds. -20- SectIOn 11:l.: Severability If any Section, paragraph, clause or provision of this Resolution shall for any reason be he Id to be invalid or unenforceable, the invalidity or unenforceability of such SectIOn, paragraph, \ lau~e or pwvislon shall not affect any of the remaining provisions of this Resolution. SectIOn 11..2: QQen Meeting. It IS hereby otlicially found and determined that the meeting at which this Resolution was adopted was open to the public, and that public notice ofthe time, place and purpose ofsaJd meetlllg was given. all as required by the Texas Open Meetings Act, Chapter 551, T exa, (rovernment C'lde :;'ectlOn I J A: Parties Interested. Nothing in this Resolution expressed or implied is intended or shall be construed to cunfer upon, or to give to, any person or entity, other than the Corporation, the Registrar. and the Owners of The Series 2006 Bonds, any right. remedy or claim under or by reasol! ill this Resolution or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements m thiS Resolution shall be for the sole and exclusive benefit of the Cllrporatlon, the Reghtrar. and the Owners of the Series 2006 Bonds. Section 1 J .5: Repealer. All orders. resolutions and ordinances, or parts thereof, inconsistent here\\ Itn are hereb" repealed to the extent of such Inconsistency. ~ectionlli: Eflective Date. nus Resolution shall become effective immediately upon passage by thIS Corporation and signature of the President of the Corporation. P .'\SSED AND APPROVED thiS 10th day of May. 2006. By: Name: Henry Garrett Title: President ATTtST By:__ _ ____,_ ______ ._'. Name Armando Chap~._, Title: ~~ret-'!!)~_ (SEAL) -21- LIST OF EXHIBITS f XHlBn /\ F()RM OF BOND CONTINUING DISCLOSURE INFORMATION ! XHIBI1 B I XHIBIl C IXHlBllf) p\ YING AGENT AGREEMENT BOND PURCHASE AGREEMENT EXHIBIT A: FORM OF BOND United States of America State of Texas Registl'rL'd Registered NORTH PADRE ISLAND DEVELOPMENT CORPORATION lAX INCREMENT CONTRACT REVENUE BOND SERIES 2006 INTEREST RATE \1A rURIT'r DATE DELIVERY DATE: CUSIP: REGIS n' RED O\VNl R PRINCIPAL AMOtiN r: DOLLARS: The NORTH P\DRE ISLAND DEVELOPMENT CORPORATION (the "Issuer"), a not- tor-pro fit local government corporation created under authority of Chapter 431, Subchapter 0, Texas Transportation Code (the" \ct") by t he ('it y of Corpus Christi, Texas (the "City"), for value received, promises to pay, but~oJely trom certain Pledged Revenues as hereinafter provided, to the Registered Owner Identified above or registered assigns, on the Maturity Date specified above, upon presentation and surrender of this Bond :It the designated corporate trust office in Dallas, Texas (the "Designated Trust ( >t1ice") of lPMorgan Chase Bank. National Association, as registrar (the "Registrar"), the principal amount identified above, in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due the United States of America, and to pay, solely from such Pledged Revenues, interest thereon at the rate shown above, calculated on the baSIS ofa 160-day year of twelve 30-day months, from the later of the Dated Date (hereinafter defmed) of the Honds. or the most recent interest payment date to which interest has been paid or duly proVided taL Interest on this Bond is payable by check on March 15 and September 15, beginning on .__ __ 15.200., mailed to the Registered Owner as shown on the books of registration kept by the Registrar as of t he last Business Day of the month next preceding each interest payment date (the "Record Date"), or by such other method, acceptable to the Registrar, requested by and at the risk and expense of the Registered Owner, If interest on this Bond is not paid on any interest payment date specified abO\ e, and continues unpaid fe)! thirty (30) days thereafter, the Registrar shall establish a new' Record Date for the payment of such mterest (a "Special Record Date"). Such Special Record Date shall he estabhshed 111 accordance with the terms of the hereinafter defined Resolut lon, fHJS BOND IS ONE OF A nUL Y AUTHORIZED SERIES OF BONDS dated as of - 2006 (the "Dated Date"). aggregating $2.900,000, issued for the purpose of (1) paying Project Costs and (2) paymg Costs ofjssuance, all under and pursuant to the authority of the Act and all other applicable laws, and a resolution adopted by the Issuer on May 30,2006 (the "Resolution"). None oithe proceeds of!he Bonds shall be used for the purpose of paying or otherwise providing for educational facilities. All defined tenns not herein defmed shall have the meaning attributed thereto in accordance with the tenns of the Resolution or the Indenture of Trust dated as of February L 2003 hetween the Issuer and .lPMorgan Chase Bank. ~ational .'\ssociation (the successor to IPMorgan Chase Bank), .IS trustee (the "Indenture of Trust") THIS BOND AND THE SERIES OF WHICH IT IS A PART are limited obligations of the Issuer that are payable from and arc equally and ratably secured. together with the currently outstanding "Parity Bonds", as defined in the Indenture of Trust, by a first lien on the "Pledged Revenues". as defmed and provided in the Indenture of Trust. which Pledged Revenues are required to be sel aside and pledged to the payment of the Bonds and all additional bonds and parity contractual oblIgations issued or entered into on a parity therewith, in the Debt Service Fund maintamed for the payment of all such Bonds, all as more fully described and provided for in the Resolution. ThIS Bond and the series of which it IS a part. together with the interest thereon, are payable solelv from slIch Pledged Revenues THE BONDS ma\ be redeemed only m prinCIpal amounts of $100,000 or any integral multiple uf$5,000 in exce"" thereat: at the option of the Issuer. on September 15,200_, or on any date thereafter. at the redemption price of par plus accrued interest to the date fixed for redemption, plus a premium as set forth below. 10-\\'11 RedemptIon Dates \ dates inclusl~e) Premium (%) Ifless than all of the Bonds are to be redeemed by the Issuer, the Issuer shall determine the maturity or maturities and the amounts therewith to be redeemed and shall direct the Registrar to call by lot Bonds, or portions thereof within such maturity or maturities and in such principal amounts, for redemption: provided, that during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds ofsuch maturity and bearing such interest rate shall he selected in accordance with the arrangements between the Issuer and the securIties depository: and provided, further, that no Bonds shall be redeemed in a manner where the RegIstered Owner thereof shall own Bonds in a denomination of less than of; 100.000 rH F BONDS are also subject to mandatory redemption in part by lot on September 15 in the tollowing years and in the fiJllowing amounts. at a price equal to the principal amount thereof and accrued and unpald Interest 10 the date of redemption, without premium: _year_______ Principal Amount Year Principal Amount * Final Maturity THE BONDS to be redeemed in any year by mandatory sinking fund redemption shall be selected by lot from the Bonds then subject to redemption; provided, that if any Bond is selected for redemption in part it shall not be redeemed in an amount that would, upon exchange, result in a Bond III a denomination less than $1 OO,()()O 1 HE PRlNCIP AL ,\MOUNT ()F BONDS required to be redeemed on each such redemption date pursuant to the foregomg operation ofthe mandatory sinking fund redemption shall be reduced, at the upllon of the Issuer. by the prinCipal amount of the Bonds which, at least 45 days prior to the mandatory sinking llmd redemption date, ( 1) shall have been acquired by the Issuer and delivered to the Registrar for cancellation or (2 ! shall have been acquired and canceled by the Registrar at the directIon of the Issuer, in either case of (I) and (2) at a price not exceeding the par or principal amoum of such Bonds, or (3) shall have been redeemed pursuant to the optional redemption proviSions described above and not theretofore credited against a mandatory sinking fund redemption. During any period ill which ownership of the Bonds is determined by a book entry at a securities depOSitory for the Bonds, If fewer than all of the bonds of the same maturity and bearing the same mterest rate are to be redeemed, the particular Bonds of such maturity to be redeemed shall be selected 10 accordance WHh the arrangements between the Issuer and the securities depository; provided. that if any Bond IS selected tt)r redemption in part it shall not be redeemed in an amount that w()uld result, upon eXl:hange, in a Bond in a denomination less than $100,000. L NLESS Vv AIVED BY THE OWNER, NOTICE OF ANY REDEMPTION shall be given at least thirty (30) day'" pnor to the date fixed for redemption by United States mail, first class postage prepaid, addressed to the Registered Owners of each Bond to be redeemed in whole or in part at the address shown on the hooks of registration kept by the Registrar. When Bonds or portions thereof have been called for redemption, and due provision has been made to redeem the same, the principal amolli1ts so redeemed shall be payable solely from the funds provided for redemption, and interest which would otherwise accrue on the amounts called for redemption shall terminate on the date fixed for redemption fHIS BOND IS TRANSFERABLE only upon presentation and surrender at the Designated frust Oftice of the Registrar, duly ~ndorsed for transfer or accompanied by an assignment duly executed by the Registered Owner or his authorized representative, subject to the terms and conditions of the Resolutil)'l. nfIS BOND IS EXCHANGEABLE at the Designated Trust Office of the Registrar for Bonds m principal amounts only m Authorized Denominations, subject to the terms and conditions of the Resolution \JEI THER THE I SSUER NOR THE REGISTRAR shall be required to transfer or exchange any Hand during the period beginning on the fifteenth calendar day of the month next preceding any interest payment date and ending on the next succeeding interest payment date or to transfer any Bond called for redemption durin~ the \0 day period prior to the redemption date. HJRING ,\NY PLRIOD in which ownership ofthe Bonds is determined only byabookentry at a securities depository tor the Bonds if fewer than all of the Bonds of the same maturity and bearing the same lmerest rate are to be redeemed, the particular Bonds of such maturity and bearing such mterest rate shall be selected in accordance with the arrangements between the Issuer and the securities depository; provided, however. that no Bonds shall be redeemed in a manner where the beneficial owner thereof shall own Bonds in any Authorized Denomination. I HIS BOND shall not be valid or obligatory for any purpose or be entitled to any benefit under the Resolution unless this Bond is either (i) registered by the Comptroller of Public Accounts of the State of Texas by registration certIficate attached or affixed hereto or (ii) authenticated by the Registrar by due execution of the authentication certificate endorsed hereon. IHE ISSUER HAS RESERVED THE RIGHT to issue additional parity Tax Increment Contract Revenue Bonds. subject to the restrictions contained in the Resolution, which may be equally and ratably payable fron~ and secured by a first lien on and pledge of, the Pledged Revenues in the same maJmer and tu the same extent as this Bond and the series of which it is a part. I HE BON DS AN D AN Y OUTST ANDING TAX INCREMENT CONTRACT REVENUE BONDS ARE A L1MlTED OBLIGATION OF THE CORPORATION, PAYABLE, TOGETHER WITH THE CURRENTL Y OUTST ANDING PARITY BONDS, SOLELY OUT OF THE TRUST ESTATL WHICH IS THE SOLE ASSET OF THE CORPORATION PLEDGED THEREFOR. THE KONDS AND <\NY ()UTST ANDING TAX INCREMENT CONTRACT REVENUE BONDS ARE OKLIGA nONS SOLELY OF THE CORPORATION AND DO NOT CONSTITUTE, WITHIN THE MEANING OF ANY ST ATUTORY OR CONSTITUTIONAL PROVISION, AN INDEBTEDNESS. AN OBLIGATION OR A LOAN OF CREDIT OF THE CITY, THE STATE OF TEXAS. NLECES COUNTY, TEXAS, DEL MAR COLLEGE, NUECES COUNTY HOSPITAL DISTRICT, REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI. TEXAS, OR ANY OTHER MUNICIPALITY, COUNTY, OR OTHER MUNICIPAL OR POLITICAL CORPORATION OR SUBDIVISION OF THE STATE OF TEXAS. NEITHER THE ('IIY. NUECES COUNTY. TEXAS, DEL MAR COLLEGE, NUECES COUNTY HOSPITAL DISTRICT NOR REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRIS1! TEXAS ARE CmLlGA TED TO MAKE PAYMENTS ON THE BONDS AND ANY OUTSTANDING TAX INCREMENT CONTRACT REVENUE BONDS. SHOULD tACH PARTICIPANT TIMEL Y CONTRIBUTE ITS TAX INCREMENT TO [HE L\X INCRFMEN r FUND.\ND THE CITY TRANSFERS ALL OF THE TAX INCRLMENTS FROl\:l TilE TAX INCREMENT FUND TO THE ISSUER IN ACCORDANCE WITH THE TERMSOFTHE TRI-PARTY AGREEMENT, AND SUCH TAX INCREMENTS TO BE TRANSFERRED ARF NOT SUFFICIENT FOR THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS ON THE DATE WHEN SUCH PRINCIPAL OR INTEREST BECOMES DUE AND PAYABLE. AN EVENT OF DEF AUL T SHALL NOT BE DEEMED TO HA VL OCCI RRFL) 1 NDER THE TFRMS OF THE INDENTURE OF TRUST. IT IS HEREBY DECLARED AND REPRESENTED that this Bond has been duly and validh Issued and delivered; that all acts, conditions, and things required or proper to be performed, exist, and be done precedent to or in the Issuance and delivery of this Bond have been performed, existed, and been done ill accordance with law; that the Bonds do not exceed any statutory limitation; and that provision has been made jor the payment of the principal of and interest on this Bond and all oflhe Bonds bv the crt'ation of the ajoresaid lien on and pledge of the Pledged Revenues. 1'\1 WIT\f.SS WHEREOF. the Issuer has caused this Bond to be executed by the manual or facsinlllc signatures oj the President and the Secretary. NORTH PADRE ISLAND DEVELOPMENT CORPORATION President. Board 0 f Directors Secretary. Board of Directors (SEAL) ~ FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. hereby certify that this Bond has been examined, certified as to validity, and approved by the Attomey General of the State of Texas, and that this Bond has been registered by the Comptroller of Public Account~ of the State of Texas WITNESS MY SIGNATURE AND SEAL this Comptroller of Public Accounts of the State of Texas (SEAl) F0R11 OF REGISTRAR'S AUTHENTICATION CERTIFICATE At THENTICA liON CERTIFICATE It 1S hereby certified that this Bond has been delivered pursuant to the Resolution described in the text of this Bond; and that this Bond is one of a series of Bonds approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts ofthe State of Texa" JPMORGAN CHASE BANK NATIONAL ASSOCIATION, ;t,'; Registrar 13\ Authorized Signature Dale of Authentication: FORM OF ASSIGNMENT <\SSIGNMENT F.lr value recei\ed. the undersigned hereby sells, assigns, and transfers unto (Please pnnt or type name. address. and zip code of Transferee) (Please insert Social Security or Taxpayer Identification Number of Transferee) the wit hin Bond and all rights thereunder. and hereby irrevocably constitutes and appoints attomev to transfer said Bond on the books kept for registration thereof, with full power of substitution in the premlse~ DATED: Signature Guaranteed: Registered Owner NOTICE Signature must he guaranteed by an institutiOl, which is a partiCIpant in the Secunties Transfer Agent Medallion Program ("ST AMP") or similar program. NOTICE: The signature above must correspond to the name of the Registered Owner as shown on the face of this Bond III every particular, without any alteration, enlargement or change whatsoever Exhibit B to Resolution DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The t()llowmg mf(lrmation is referred to in SectIOn 9.1 of this Resolution. Annual Financial Statements and Operating Data The fInancial infonnation and operating data with respect to the Corporation to be provided annually III accordance with such Section are as specifIed (and included in the Appendix or under the headings of the Limited Offering Memorandum referred to) below: 1 The inf(mnatior: of the general type included in Tables 1 through 3 of the Limited Offering Mem()randum. :: "Financial Statements of the North Padre Island Development Corporation". Accounting Principles The accountmg pnnciples referred to in such Section are the accounting principles described in the notes to the fInancial statements referred to in paragraph 2 above. PA VING AGENT AGREEMENT fHIS PAYING AGENT AGREEMENT entered into as ofJune 1,2006 (this "Agreement"), by and hetween the North Padre Island Development Corporation (the "Issuer"), and IPMorgan Chase Bank, National Association. a natIOnal banking association duly organized and existing under the laws of the Umted States of Amenca (the "Bank"). RECI T ALS WHEREAS. the I ssuer has duly authorized and provided for the issuance of its Tax Increment Contract Revenue Bonds. Series 2006. in the aggregate principal amount of $2,900,000 (the "Secuntles"). such Securit les to be Issued III fully registered form only as to the payment of principal and interest thereon. and WHEREAS the ssuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, ifany, and interest on said Securities and with respect to the regIstration. transfer and exchange thereofby the registered owners thereof; and WHEREAS. the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has hIll power and authority to perfonn and serve as Paying Agent/Registrar for the Securities; NOW. THEREFORE. it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PA YING AGENT AND REGISTRAR Section 1.0). ,!\.Jmointmen!. fhe Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities. As Paymg Agent for the Securities. the Bank shall be responsible for paying on behalf of the Issuer the principal, premium t if any), and mterest on the Securities as the same become due and payable to the registered O\vners 1 hereof, all in accordance with this Agreement and the "Resolution" (hereinafter defmed) The Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the Securities. the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and ill the Resolution rhe Bank hereby accepts its appomtment. and agrees to serve as the Paying Agent and Registrar ltlr the Securities. Section 1.02. Compensation \1., compensatIOn ror the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts as may be agreed upon in writing. The initial fees and amounts payable !()r the Bank'.., services a~ Paying Agent/Registrar are as set forth in Exhibit A attached heret ( , In addit ion. the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses. disbursements and advances incurred or made by the Bank in accordance with any of the proviSions hereof I mcluding the reasonable compensation and the expenses and disbursements of its agents and counsel} ~RTICLE TWO DEFINITIONS Section 2.01. Definitions. hn all purposes 0 t this Agreement, except as otherwise expressly provided or unless the context otherwise requlfe~ "\ccelerat!(1n Dak" on any Security means the date on and after which the principal or any or all lOstallments of interest, or both. are due and payable on any Security which has become accelerated pursuant t(, the terms of the Security. "f1ank Office" means the principal corporate trust office of the Bank as indicated on the signature page hereof The Bank will notity the Issuer in writing of any change in location of the Bank i lt1ice. "(ode" means the Internal Revenue Code of 1986. as amended. "F]scal Year' means the twelve (12) month period commencing on August! ofa calendar year and ending July 3] olthe next succeeding calendar year, or such other consecutive twelve (12) month period as deteT111ined bv th\~ Issuer 'Holder" and "Security Holder" each means the Person in whose name a Security is registered III the Security Register "Issuer Request' and "Issuer Order" means a written request or order signed in the name of the Issuer by the Executive Director of the Issuer, the President or the Vice President ofthe Issuer, anyone or more of said officials. or any other person designated by the Issuer, and delivered to the Bank. '1 egaJ Holiday" means a day on which the Bank ]1., required or authorized to be closed. ") -L- . Person" means any individual. corporation, partnership, joint venture, association, joint stock company, trust, umncorporated organization or government or any agency or political subdivision ofa l..'o\emment. , Predecessor Sec urities" 0 r any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this deti1l1tion. any mutilated, lost, destroyed, or stolen Security for which a replacement Secunt: has been regIstered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolutl(m) 'Proceedings' means the ResolutIon and the Trust Indenture Redemption Date' when used with respect to any Bond to be redeemed means the date fixed for such redemption pursuant to the tenns of the Resolution. "ResolutIon" means the resolution. order, or ordinance of the governing body of the Issuer pursuant to which the Securities are Issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. 'Responsible Officer" when used with respect to the Bank means the officer(s) in the corporate trust serVices department of the Bank having direct responsibility for administration of the Secunties "Security Register' means a register maintamed by the Bank on behalf ofthe Issuer providing for the registratton and transfer of r he Securities. .. Stated Mat unty" means the date specified in the Resolution the principal of a Security is scheduled to be due and payable. "Trust Indenture" means the Indenture of Trust by and between the Issuer and lPMorgan Chase Bank, National ~ss()ciation I as successor to IPMorgan Chase Bank), as trustee, dated as of Februarv L 2003. Section 2.02. Other Definitions. -" -.-..-- The tenm "Bank," Issuer," and "Securities (Security)" have the meanings assigned to them III the recital paragraphs of this Agreemenl The tenl1 "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. -3- ARTICLE THREE PA VING AGENT Section 3.01. Duties of Paying Agent. \s Paymg i\gent. the Bank shall. provided adequate collected funds have been provided to it tor such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Secunty at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Secunty 10 the Bank at the Bank Office. \s Paying Agent, the Bank shall. provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Seeunty when due. by computing the amount of interest to be paid each Holder and preparing and sending checks by Umted States mail. first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on the respective Record Date, to the address appeanng on the Security Register or by such other method, acceptable to the Bank, requested III wnting 11\ the Holder It the Holder's risk and expense. Section 3.02. ~ment Dates The Issuer hereby lllstructs the Bank to pay the principal of and interest on the Securities on the dates specified III the Resolution. ARTICLE FOUR REGISTRAR Section 4.0 I. Security Register - Transfers and Exchanges. The Bank agrees tt I keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and eontainmg such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Seeun! y surrendered h)r transfer or exchange shall be duly endorsed or be accompanied by a wntten instrument of transfer. the signature on which has been guaranteed by an officer of a federal or state bank (ir a member of the National Association of Securities Dealers, in form satisfactory to the Bank duiy executed by the Holder thereof or his agent duly authorized in writing. fhe Bank may request any supporting documentation it feels necessary to effect a re- registration. transfer or exchange of the Securities -4- T () the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfet of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three (.~) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the wntten instrument of transfer or request tor exchange duly executed by the Holder, or his duly authorIZed agent m f{ Iml and manner satisfactory to the Paying Agent/Registrar. fhe Bank may utilIZe the senices of an agent, to act on behalf of the Bank, m the performance of the sen Ice~ ofregistrar under the terms of this Agreement. Section 4.02. Certificates. fhe Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchange~ thereof The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Securities ill safekeeping, which shall be not less than the care maintained by the Bank for debt securitIes of other politIcal subdivisions or corporations for which it serves as registrar, or that is maintamed for its own securities Section 4.03. Form of Security Reeister. fhe Bank, as Registrar. wiH mamtain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures m effect lrom time to time. The Bank shall not be obligated to maintain such Security Register in any form other! han those which the Bank has currently available and currently utilizes at the 1 !lne fhe Security Register may be maintained in written form or in any other form capable ofbeing converted mto written fi}rm within a reasonable time. Section 4.04. List of Security Holders. rhe Bank WIll proVIde the Issuer at any time requested by the Issuer, upon payment of the required tee, a copy of the information contained in the Security Register. The Issuer may also mspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the infimnation into written form. rhe Bank will nOl release or dIsclose the contents ofthe Security Register to any person other than to. or at the written request of. an authorized officer or employee of the Issuer, except upon receipt ofa court order or as otherwise required by law. Upon receipt ofa court order and prior to the release or disclosure of t he contents of the Security Register, the Bank will notifY the Issuer so that the Issuer may comest the court order or such release or disclosure of the contents of the Security Register. -5- Section 4.05. Return of Cancelled Certificates. With respect to all Securities paid or redeemed in accordance with the Resolution, and such Secunties shall be cancelled and thereafter treated in accordance with the Bank's document retention poliCies Section 4.06. Mutilated, Destroyed, Lost or Stolen Securities. rhe Jssuer hereby lllstructs the Bank, subject to the applicable provisions of the Proceedings, to dehver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securi- ties as long as the same does not result in an over-issuance. J n case any Securit y shall be mutilated, or destroyed, lost or stolen, the Bank, in its discretion, may execute and deliver a replacement Security oflike form and tenor, and in the same denomination and bearmg a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security. or III heu of and in substitution for such destroyed lost or stolen Security, only after i I) the filing bv the Holder thereof with the Bank of evidence satisfactory to the Bank of the destructIon, loss or theft of such Security. and of the authenticity of the ownership thereof and (ii) the funllShing to the Bank of indemnification in an amount satisfactory to save and hold the Issuer and the Hank hannles..,. \11 expenses and charges associated with such indemnity and with the preparation, execution ane! deliver: of a replacement Security shall be borne by the Holder of the Secumy mutilated. or destroyed. lo..,t or stolen. Section 4.07. Transaction Information to Issuer. The Bank ~ ilL wit hin a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has deiivered upon the transfer or exchange ofany Securities pursuant to Section 4.0 1, and Securities It has dehvered in exchange for or in lieu l) f mutilated. destroyed. lost. or stolen Securities pursuant to Sect 1011 4.06 "RTICLE FIVE THE BANK Section 5.0]. Duties of Bank. fhe Bank undertakes to perhlrm the duties set forth herein and agrees to use reasonable care III the perlormancc thereof Section 5.02. Reliance on Documents, Etc. ! a i The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificales or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer. unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. -6- (~i No prm lsions of this Agreement shall require the Bank to expend or risk its own funds or otherwIse mcur dny financial liability for perfonnance of any of its duties hereunder, or irl the exercise of any of its rights or powers. if it shall have reasonable grounds for believirlg that repayment of such funds or adequate mdemnity satisfactory to It agairlst such risks or liability is not assured to It. (di The Bank may rely and shall be protected irl actirlg or reframmg from acting upon any resolutIon. certiticate. ~tatcment. instnnnent, opirlion, report, notice, request, direction, consent, order. bond, note. security. or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limitirlg the generality of the foregoirlg statement, the Bank need not examine the 0 wnership 0 f any Securities, but is protected irl acting upon receipt of Securities .:ontaining an endorsement or instruction of transfer or power of transfer which appears on its face to he ~Igned by the Holder or an agent of the Holder. The Bank shall not be bound to make any Investigation into the facts or matters stated irl a resolution, certificate, statement, mstrument. opinion. report notice, request. direction. consent, order. bond, note, security, or other paper or document supplied by Issuer. lei The Bank may consult wIth counsel, and the written advice ofsuch counselor any opinion of counsel shall be full and complete authonzation and protection with respect to any action taken, suffered. : lr omitted by [t hereunder in good faith and in reliance thereon. 1'1 rhe Bank may l'X.erClse any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank Section 5.03. Recitals of Issuer rhe recitals contairled hereirl with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer. and the Bank assumes no responsibility for their correctness. rhe Bank shall U1 no event be liable to the Issuer. any Holder or Holders of any Security, or any other Person for dny amount due on any Security from its own funds. Section 5.04. May Hold Securities. rhe Bank. in Its commercial banking or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have ifit were not the PaYll1g AgenVRegistrar. or any other agent. Section 5.05. Moneys Held by Bank. \loney held by the Hank hereunder need not be segregated from any other funds provided approprIate trust accounts are maintairled 111 the name and for the benefit of the Issuer. rhe Bank shall be under no liability for irlterest on any money received by it hereunder. Subject to the Unclamled Property Law of the State of Texas, any money deposited with the Bank for the payment of the prirlcipal, premium (if any), or irlterest on Security and remaining unclaimed for two and one-half years after [he final maturity of the Security has become due and -7- payable will be paid hy the Bank to the Issuer if the Issuer so elects in writing, and the Holder of such Secunt: shall hereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to such moneys shall thereupon cease. If the Issuer does not elect, the Bank is directed to report and dIspose oft he funds in compliance with Title Six ofthe Texas Property Code, as amended. Section 5.06. Indemnification J 0 the extent permitted by law. the Issuer agrees to indemnifY the Bank for, and hold it harmless agamst. any lOSS. liability. or expense incurred without negligence or bad faith on its part, arising out ofar in connection with Its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any 0 i its powers or dutie, under this !\greement Section 5.()7. Interpleader:. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand. or contrO\ersy lver its person as well as funds on deposit. in either a Federal or State District ('oun located in t he State of Texas. and agree that service of process by certified or regis- tered malL return receipt requested. to the address referred to in Section 6.03 of this Agreement shall constItute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction within the State of Texas to determine the rights of any Person claiming any interest herein. Section 5.08. Depository Trust Companv Services. I t IS hereby represented and \varranted that. in the event the Securities are otherwise qualified and accepted for The Depository Trust ('ompany ("DTC") services or equivalent depository trust services oy other orgamzatlons. the Bank has the capability and, to the extent within its control, will complv with DTC\ Operational Arrangements. which establish reqUirements for securities to be eligible tor such type depository trust services, including. but not limited to, requirements for the timeliness of payments and funds availability. transfer turnaround time, and notification of redemptIons and calls ~RTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. A.mendment hereto ThiS Agreement ma v be amended only by an agreement in writing signed by both ofthe parties Section 6.02. Assienment. other. This Agreement may not be assigned by either party without the prior written consent ofthe -8- Section 6.03. Notices. ~ny request, demand, authorizatIon, direction, notice, consent, waiver, or other document provIded or pennitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or 'he Bank, respectively, at the addresses shown on the signature page of this Agreement. All such not Ices shall be effective only upon receipt. Section 6.04. Effect of Headings l'he Article and Section headings herein are fClr convenience only and shall not affect the construction hereof Section 6.05. Successors and Assigns. \11 covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severabilit). I n case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaming provisions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of Agreement. Nothing herein. express or implied, shall give to any Person, other than the parties hereto and their successors hereunder. any benefit or any legal or equitable right. remedy, or claim hereunder. Section 6.08. Entire Agreement This Agreement and the Proceedings constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between his Agreement and the Proceedings, the Proceedings shall govern. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10. Termination fJllS Agreement will ternllnale (i) on the date affinal payment of the principal of and interest on the SecuritIes to the Holders thereof or (ii) may be earlier temlinated by either party upon sixty (60) days written notice; provided, however, an early tennination ofthis Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and tb) notice has been given to the Holders of the Securities of the -9- appomtment at a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early tennination of this Agreement shall not occur at any time which would dismpt. delay or otherwise adversely affect the payment of the Securities. I r pon an early tennmation 0 fthis Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or .1 copy thereon, together with other pertinent books and records relating to the Securities. to the successor Paying Agent/Registrar designated and appointed by the Issuer. ] he provisions of ~ection 1.02 and Article Five of this Agreement shall survive and remain in full force and effect following the ternunation of this Agreement. Section 6.11. Reportin2 Requirements. 10 the extent reqUired by the Code or the Treasury Regulations, the Bank shall report the amount of interest paid or the amount treated as interest accrued on the Securities which is required to be reported by the Holders on their returns of federal income tax, or assure that such a report is made. to the Holders and The Internal Revenue Service Section 6.12. Governing Law. This Agreemem shall be constmed in accordance with and governed by the laws of the State of Texas IEXECUTlON PAGE FOLLOWS) -10. IN WITNESS WHF REOF. the parties hereto have executed this Agreement as of the day and vear first dbove WrItten JPMORGAN CHASE BANK, NATIONAL ASSOCIATION Bv TItle Address: 600 Travis Street. Suite 1150 Houston, Texas 77002 Attention: Worldwide Securities Services [BANK SEAL] NORTH PADRE ISLAND DEVELOPMENT CORPORA nON Corpus Christl. Texas B) Title: Address: Executive Director ] 20 I Leopard Corpus Christi, Texas 78401 1\ttest: Secretary [ISSUER SEAL] -] ] - S( 'HEDU LE A Paying AgenURegistrar Fee Schedule PA YIN( i AGENTlRFGISTRAR SERVICES Fees tor paymg agent~ef\ Ices are incorporated as part of the fees charged for trustee services. NORTH PADRE ISLAND DEVELOPMENT CORPORATION (A not-for-profit local government corporation acting on behalf of the City of Corpus Christi. Texas) lAX INCREMENT CONTRACT REVENUE BONDS SERIES 2006 BOND PURCHASE AGREEMENT June 21, 2006 Board of Directors 'Jorth Padre Island Development Corporation 1201 Leopard ('orpus Chnsti, Texas 7840 I Ladies and Gentlemen The underSIgned, M E. Allison & Co., Inc. (the "Underwriter"), offers to enter into the ti:)llowing agreement with North Padre Island Development Corporation (the "Issuer") which, upon the Issuer's written acceptance of this offer, as evidenced by the execution of this Bond Purchase Agreement by the undersigned. as the duly authorized representative of the Issuer (the "'Issuer Rcpresentati1c"). will be binding upon the Issuer and upon the Underwriter. Capitalized terms used herem and not otherwise defined in this Bond Purchase Agreement shall have the respective meanmgs given to such terms in the Limited Offering Memorandum (as defined herein). 1. Background and Purpose. The Issuer is issuing ItS Tax Increment Contract Revenue Bonds. Series 2006, in the aggregate principal amount of $2,900,000 (the "Bonds"), pursuant to a resolution adopted May 30, 2006 (the "Bond Resolution") of the board of directors (the "Governing Body") of the Issuer for the purpose of providing funds to pay Project Costs. Bond proceeds will also be u...ed to pay issuance costs associated with the Bonds. 2. Purcha!tie and Sale of the Bonds. Subject to the terms and conditions and in rehance upon the representations. warranties and agreements set forth herein, the Underwriter agrees to purchase from the Issuer. and the Issuer agrees to sell and deliver to the Underwriter at Closing (as hereinafter defined), alL but not less than all, of the Bonds. Inasmuch as this purchase and sale represents a negotiated transaction, the Issuer understands, and hereby confirms, that the Underwriter is not acting as a fiduciary of the Issuer, but rather is acting solely in its individual capacity as an Underwriter for its own account. The purchase price f()r the Bonds shall be 95.29103% of the par amount of the Bonds (or S2.763,500). ~" ';~713.3 rhe Bonds shall be issued pursuant to and in accordance with the provisions of the Bond Resolution and an Indenture of Trust, dated as of February I, 2003 (the "Indenture"), by and between the Issuer and lPMorgan Chase Bank, National Association, as successor to lPMorgan Chase Bank, as trustee (the "Trustee") J. Limited Offering. The Underwnter agrees to make a limited offering of all of the Bonds at prices not to exceed the offering price set forth on Exhibit A and may subsequently change "uch offenng pnce" (or yields) WIthout any requirement of prior notice to the Issuer. The Undernriter may offer and sell Bonds to certain dealers (including dealers depositing Bonds into Illvestment trusts) and others at prices lower than the offering price stated on Exhibit A (or at yields hIgher than "uch Illitial publIC offering yields). The Preliminary Limited Offering V1emorandum descrIbes various risk factors that eXIst in connection with the sale of the Bonds, and consistent WIth ltS dutIes under federal secunties law the Underwriter has taken those risk Ji!ctors 111to account III 111ak mg a limited offering of the Bonds. 4. Offering Documents. (a) Preliminmy Limited Offenng Memorandum. The Issuer previously has delivered copies of the Preliminary Limited Offering Memorandum to the Underwriter for its use in determining interest in the Bonds. The Issuer ratifies and approves the Preliminary Limited ()tfering Memorandum and its use by the Underwriter for that purpose before the Preliminary limited Offering Memorandum described below becomes available. The Issuer confirms that it has not prepared any (lfficial statement tor dissemination to potential customers prior to the availability of such Preliminary Limited Offering Memorandum, except the Preliminary Limited Otfering Memorandum The Preliminary Limited Offering Memorandum was deemed final by the Issuer as of its date lor purposes of Rule 15c2-12 of the United States Securities and Fxchangc CommISSIOn (thl' "Rule '), except possibly tCH the omission of items specified by paragraph (b)(1 ) of the Rule (h) Delivery of Preliminary LImited Offering Memorandum. Not more than seven business days after the time the Issuer accepts this offer, the Issuer will deliver copies of a final Preliminary Limited Offenng Memorandum related to the Bonds, approved by the Governing Body or one or more duly authonzed officers thereof~ to the Underwriter in sufficient number to permit the !inderwriter 10 comply \\ith the requirements of the Rule. Such Preliminary Limited Otfering Memorandum WI I be dated a date on or near its delivery, when delivered to the nderwnter will be complete within the meaning of the Rule, and will be substantially in the i()ffn of the most recent markup of the Preliminary Limited Offering Memorandum provided to the Underwriter before the execution hereof. Such Preliminary Limited Offering Memorandum, meluding the cover page I hereto, all exhibits, appendices, maps. charts, pictures, diagrams, (Cports, and statements included or incorporated therein or attached thereto, and all amendments md supplements therete that may he authorized for use with respect to the Bonds, is herein derred ti> U'i the "Prc/iminw1' Limited Offering Memorandum". (C) Amendments and Supplements to Preliminary Limited Offering Memorandum. From the date of this Bond Purchase Agreement to the 30th day (or such other day, not later than the 90th day, that may be specified by the Underwriter at the Closing referred to herein) tollowing the date of such Closing, the rssuer will notifY the Underwriter whenever, in the ,,'i7X733 j ., ludgment of the Issuer, the Preliminary Limited Offering Memorandum should be amended or supplemented in order for the Official Statement not to contain any untrue statement of a material fact and not h) omit to state any material fact necessary to make the statements in the Preliminary Limited Offering Memorandum, in light of the circumstances in which they are made, not misleadmg, The Issuer will amend or supplement the Preliminary Limited Offering Memorandum at the expense of the Issuer and in a manner satisfactory to the Underwriter, when In the reasonable judgment of the Issuer or the Underwriter such amendment or supplementation is reqUIred (d) Use of Preliminarv LImIted Offerin2 Memorandum. The Underwriter, all members of any selling group whIch may be formed in connection with the distribution of the Bonds, and all dealers to whom any of the Bonds may be sold by the Underwriter or by members ,)f any selling group may use the Preliminary Limited Offering Memorandum and the mformatlon contained therein. including any amendments or supplements thereto, in connection WIth the otfering and sale of the Bonds (e) Continumg Disclosure. fhe Issuer will agree in the Bond Resolution to provide or cause to be provided certain periodic information and notices of material events in accordance WIth the Rule. as described in the Preliminary Limited Offering Memorandum under "CONTJNU INO DISCLOSURE OF IN FORMA TION," The Underwriter acknowledges receipt of a draft of the Bond Resolution in whIch there is contained the agreement described under such heading. and the Issuer acknowledges that except as disclosed in the Limited Offering Memorandum It has substantially compl1ed with its prior contractual agreements to provide continuing disclosure, The Underwriter's obligation to accept and pay for the Bonds is conditioned upon delivery to the Underwriter or its agent of a certified copy of the Bond Resolution containing the provisions described under such heading, (fi Substantive Requirements for Preliminary Limited Offering Memorandum. To the best knowledge and belief of the Issuer, the Preliminary Limited Offering Memorandum contains mtormatlOn. including financial mformation or operating data, concerning every entity, enterprise, fund. accoun1. or person that is material to an evaluation of the offering of the Bonds. 5 Repre,\'entation"i, Warranties, and Covenants of the Issuer. The Issuer hereby represents and warrants to and covenants with the Underwriter that: (a I Due Organization. fhe Jssuer is a not-for-profit local government corporation riding on behalf of the City of Corpus Christi, Texas (the "City"), duly created, organized, and existing under the ConstitutIOn and laws of the State of Texas. and is authorized and empowered hv the proVISIons of the Texas Constitution. the laws of the State of Texas, and the ordinances of the City to Issue the Bonds for the purposes of providing funds for the purposes specified in '-:ection 1 hereof (b i Due Authorization. By all necessary official action of the Issuer prior to or .:oncurrently with the acceptance hereot the Issuer has duly authorized all necessary action to be taken by It for (i) the adoption ofthe Bond Resolution, the Indenture and the issuance and sale of the Bonds. (ii) the approval. execution and delivery of, and the performance by the Issuer of the obligations on its part, contained in the Bonds. the Bond Resolution, the Indenture, this Bond 4';"78733.J ~ Purchase Agreement and the Tri-Party Agreement, (iii) the consummation by it of all other transactIOns contemplated by the Limited Offering Memorandum, the Bond Resolution, the Indenture. this Bond Purchase Agreement, and the Tri-Party Agreement, and any and all such uther agreements and documents as may be required to be executed, delivered and/or received by the Issuer in order to (arry out give effect to, and consummate the transactions contemplated herein and III the Lllnited Offering Memorandum. ,C) Lt:gaL Valid, and Binding ObligatIOns. The Bond Resolution has been duly adopted by the Governing Body of the Issuer. and the Bonds, when issued, delivered and paid tor, in accordance \vlth the Bond Resolution and this Bond Purchase Agreement, will constitute legaL valid and binding hmited obligation of the Issuer secured solely by a valid lien on the Pledged Revenues and entitled to the benefIts of the Bond Resolution; and when delivered to and paid for bv the Underwmer at the Closmg the Bonds will have been duly approved by the ~ttorne: General of Texas, registered by the Comptroller of Public Accounts of the State of r exas, and duly executed and delivered by the Issuer and will constitute legal, valid, and binding lImited obligatIons of the Issuer enforceable against the Issuer in accordance with their terms, subject to bankruptcy laws and similar laws affecting the rights of creditors of political subdiviSions generally. and may be lImited by general principles of equity which permit the exercise (>t i udicial discreti, JIl. (d) Tn-Part) Agreement and Indenture. The Tri-Party Agreement and the Indenture constitute the legaL valid, and binding obligations of the Issuer enforceable against the Issuer in accordance with their respective tenns, subject to bankruptcy laws and similar laws affecting the rIghts of creditors of political subdivisions generally, and may be limited by general principles of equity which permit the exercise of judiCial discretion. Neither the Tri-Party nor the Indenture have been amended as ufthe date o1this Bond Purchase Agreement (C I Default. fo the best knowledge of the Issuer. it is not in any material respect in breach (of or default under any applicable constitutional provision, law or administrative regulation of the City. the State or the United States or any applicable judgment or decree or any loan agreement indenture, bond. note. resolution. agreement or other instrument to which the Issuer is a party or to which the Issuer IS otherwise subject, and no event has occurred and is continuing \vhich constitutes or with the passage of time or the giving of notice, or both, would -.;onstitute a default or event of default by the Issuer under any such instrument. (1) Necessary Approvals. Except for approval of the Bonds by the Attorney General "f Texas and registration of the Bonds hy the Comptroller of Public Accounts of the State of fexas. all approvals. permIts, consents. hcenses and authorizations of, registrations or filings WIth, and notices to any government authority which are required for the Issuers's due execution, delIvery, and performance of Its obligations under the Bonds, the Bond Resolution, the [ndenture.. and this Bond Purchase Agreement have been made or obtained. (gl No litIgatIOn No action. suit, proceeding, inquiry, or investigation, at law or in equity, before or by any court or public board of body in which the Issuer has been served or of which it has otherwise received official notice is pending against or to the knowledge of the Issuer, is threatened against the Jssuer (nor to the knowledge of the Issuer is there any basis therefor) wherein an unfavorable decision, ruling, or finding would impose a material financial ~<-'cn33, 4 liability on the Issuer or In any way adversely affect (i) the creation, organization, existence, or material authority of the Issuer nr the title of its officers to their respective offices, (ii) the collectIOn of Contract Tax Increments or other revenues of the Issuer to any material extent, (iii) the transactions contemplated bv this Bond Purchase Agreement or the Limited Offering Memorandum. Ii\') the, alidity or enforceability of the Bonds, the Bond Resolution, the Indenture. this Bond Purchase Agreement or the Tri-Party Agreement, or (v) the excludability of the intere~t on the Bonds from the gross Income of the owners thereof (hI Accuracy of Official Statement. The Bonds, the Tri-Party Agreement and the Indenture conform to the descriptions thereof contained in the Limited Offering Memorandum and the proceeds of the sale of the Bonds will be applied generally as described in the Limited Offering Memorandum under the captlOn "SOURCES AND USES OF BOND PROCEEDS." The infonnation con tamed in the Limited Offering Memorandum with respect to the Bonds, the fssuer, the Zone. the Project, development within the Zone, land use within the Zone, and the Issuer's other atlairs is true and corred in all material respects and, as of the date of the Limited OtTering Memorandum, the Limited Offering Memorandum, with respect to such information, did not, and as of the date of the Closing will not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made thereIn with respect '0 the Bonds, the Issuer, the Zone, the Project, development within the Zone, land use within the Zone. and the Issuer's affairs, In the light of the circumstances under which they were made, nl)t misleading. With respect to information in the Limited Offering Memorandum. other than the information relating to the Bonds, the Issuer and the Issuer's affairs, the Issuer has no reason to helieve that such information contains any untrue statement of a material tact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not mIsleadIng ( I) No Material Adverse Change. Prior to the Closing, there will be no adverse change of a material nature in the financial position, results of operations or condition, financial \ II' otherwise, of the Issuer. The Issuer is not a party to any litigation or other proceeding pending \)L to its knowledge, threatened which, if decided adversely to the Issuer, would have a m ateri all y adverse effect on the finanCIal condition of the Issuer. Between the date of this Bond Purchase Agreement and the Closing, the Issuer will not, without the prior written consent of the t !nderwriter, issue any bond or note or incur any other obligation for borrowed money which is or may be payable from, or does or may constitute a charge on, the Pledged Revenues, and from the respectIve dates as of which information is given in the Limited Offering Memorandum to the Closmg the Issuer has not incurred and will not incur any material liabilities. (J) Officers' Certificates. Any certificate signed by any official of the Issuer duthorized to do so m connection with the transactions contemplated by this Bond Purchase '\greement shall be deemed a representation and warranty by the Issuer to the Underwriter as to the statements made therein (k) Issuer Representative. The Issuer Representative is authorized to act on behalf of the Issuer, for the purpose of selling the Bonds to the Underwriter, fixing the terms of the Bonds as set forth in Exhibit A and taking the other actions provided for herein and in the Bond Resolution, and such actions by the Issuer Representative shall be deemed to be actions by the .f,nS7333 5 Issuer. fhe President and any Vice President of the Governing Body or the Executive Director ,)f the Issuer each has been duly authorized to act on behalf of the Issuer, as the Issuer Representative. for the purpose of taking the actions provided for herein. B) delivenng an executed copy of the Limited Offering Memorandum to the Underwriter, the Issuer shall be deemed to have reaffirmed, with respect to such Limited Offering Memorandum, the representations, warranties and covenants set forth above. The Issuer covenants that bet\\ een the date hereof and the Closing, it will take no actions that will ,:ause the representations and wan-anties made in this Section to be untrue as of the Closing. fl. Closing. l a) fhe Issuer will deliver the Bonds to the Underwriter, and the Underwriter will pay tor the Bonds, at 9:00 a.m. central time. on July 26, 2006 (the "Closing Date"), or at such other time and date as shall have been mutually agreed upon by the Issuer and the Underwriter. Such actions are herein refen-ed to as the "Closing." The Closing will occur at the offices of McCall, Parkhurst & Horton L.L.P.. Dallas, Texas, or at such other location as may be agreed to by both the Issuer and the Underwriter. and the Bonds will be delivered through The Depository Trust ( 'ompam. (b) At the Closing, the Issuer will, subject to the terms and conditions hereof: deliver one dul)> executed mitial Bond for each maturity of the Bonds (the "Initial Bonds") in either tvped or pnnted for. payable to Cede & Co., and bearing a registration certificate manually SIgned bv an authorized representative of the Comptroller of Public Accounts of the State of Texas, together WIth the other documents hereinafter described. The Issuer will cause the Paying Agent/RegIstrar to exchange the Initial Bonds at Closing for definitive Bonds, duly authenticated by the Paymg Agent Regislrar and heanng CUSIP numbers, immediately upon payment for and surrender t()r exchange of -;uch Initial Bonds by the Underwriter. through the book-entry only wstem ofthe Depositorv Trust Compam (Ll The U ndern riter will pay the purchase price for the Bonds by wire transfer of immediately available funds to the Paying Agent/Registrar to the account of the Issuer. (d) Time IS of the essence m the performance of this Bond Purchase Agreement. r euder of the Initial Bonds and definitive Bonds at the time and place specified in this Bond Purchase Agreement IS J condition to the Underwriter's obligations hereunder. If the Issuer is unable to perform its obligations hereunder at such time and place, the Underwriter may, at its l)ption. eIther extend the time or change the place of performance or terminate its obligations hereunder 7 Closing Condition,\. The Underwriter has entered into this Bond Purchase '\greement In reliance upon the representations. warranties and agreements of the Issuer ;.:ontained herein. and in reliance upon the representations, warranties and agreements to be ,.:ontained in the documents and instruments to be delivered at the Closing and upon the performance by the Issuer of its obligations hereunder, both as of the date hereof and as of the date of the Closing. Accordingly. the Underwriter's obligations under this Bond Purchase .'\greement to purchase. to a~cept delivery of and to pay for the Bonds shall be conditioned upon ""S733 3 6 the pertormance by the Issuer of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing, and shall also be subject to the following additional conditions including the delivery by the Issuer of such documents as are enumerated herein, m form and substance reasonably satisfactory to the Underwriter and counsel to the nderwriter: a) The representations and warranties of the Issuer contained herein shall be true, complete and correct in all material respects on the date hereof and on and as of the date of the Closing. as ifmade nn the date of the Closing. i b) fhe Issuer shall have performed and complied with all agreements and conditions required bv this Bond Purchase At-,J"feement to be performed or complied with by it prior to or at the Closmg IC) At the time of the Closmg, (i) the Bond Resolution. the Indenture, the Bonds, the Iri-Party Agreement and the Interlocal Agreements shall be in full force and effect and shall not have been amended. moditied or supplemented, and the Limited Offering Memorandum shall not have been supplemented or amended, except in any such case as may have been agreed to by the I inderwnter, (ii) the net proceeds of the sale of the Bonds and any funds to be provided by the Issuer shall be deposited and applied as described in the Limited Offering Memorandum and in the Bond Resolution and (lli) all actions of the Issuer required to be taken by the Issuer shall be performed 1 n order fi)r Bond Counsel to deliver its opinions referred to hereafter. (d) At or prior to the Closing, the Bond Resolution shall have been duly executed and delivered by the Issuer and the Issuer shall have duly executed and delivered and the Paying i\gent/Reglstrar shalJ have duly authenticated the definitive Bonds. (e) At the time (If the Closing. the Issuer shall deliver the Bonds to the Underwriter. ( fl At the tJ me of the Closmg, there shall not have occurred any change or any development involving a prospective change in the condition, financial or otherwise, or in the revenues or operations of the Issuer. from that set forth in the Limited Offering Memorandum that in the reasonable judgment of the Underwriter, is material and adverse and that makes it, in the reasonable Judgment of the Underwriter, impracticable to market the Bonds on the terms and n the manner contemplated in the Limited Offering Memorandum. (g) All steps to be taken and all instruments and other documents to be executed, and all other legal matters in connection with the transactions contemplated by this Bond Purchase c\greement shall be reasonably satisfactory in legal form and effect to the Underwriter and to ,:ounsel t()r the llnderwnter (h) At (}f prior to the Closing. the Underwriter shall have received copies of each of the following documents. ( I ) The LImited Offering Memorandum, and each supplement or amendment thereto as may have been agreed to by the Underwriter, if any, executed on behalf of the Issuer by the manual or facsimile signature of an Issuer Representative; 4 i~7R733 3 7 (2) The Bond Resolution, having been duly adopted by the Issuer and being in full force and effect. \\ith such supplements or amendments as may have been agreed to by the Underwriter: (3) ('oples of the Indenture certitied to be in full force and effect; (41 ('oples of the ord1l1ances creating and setting the current boundaries of Reinvestment Zone \lumher Two. Cit) of Corpus Christi. Texas ("Reinvestment Zone Two"), and a copy of the resoluti~m creat1l1g the Issuer and approving its articles of incorporation and hy-Iaws all certified to be !ll full force and effect; (51 A certificate of continued existence with respect to the Issuer from the Texas Secretary of State, a copy of the Issuer's Articles of Incorporation certified by the Texas Secretary ~)f State and a certificate of good standing with respect to the Issuer from the Texas ('omptroller of Pubhc Accounts. all dated within three days of the Closing Date; (61 A copy of the Tn-Party Agreement and the Interlocal Agreements, with all supplements or amendments enacted through the Closing Date. and a copy of the Project Cooperation Agreement between the Department of the Army and the City of Corpus Christi, rexas, tllr Construction of the North Padre Island Storm Damage Reduction and Environmental Restoration Project. as tinally executed by both parties and in full force and effect; (7 /\ clJrtificate, dated as of the Closing and signed by an Issuer RepresentatIve, solely In hIS or her official capacity. to the effect that, (i) the representations, warranties. and covenants of the Issuer contained herein are true and correct in all material respects as of tht' CloslOg, with the same effect as If made at the Closing; (ii) the Issuer has performed all of its obligations ht'reunder to be performed at or before the Closing and has satisfied a11 matenal conditions on Its part to be satisfied hereunder at or before the Closing; (iii) none of the Bond ResolutlOn, the Indenture or the Tri-Party Agreement have been amended, modified. supplemented. 01 repealed since the date of this Bond Purchase Agreement, except as agreed to by the l ndef\vritcr, and each IS in full f()rce and effect; (iv) no litigation or proceeding against the Issuer is pending or. to the best of his or her knowledge, threatened in any court or administratl ve body no1. t(, the best of knowledge, is there a basis for litigation which would a) contest the nght of the directors or officials of the Issuer to hold and exercise their respective positions. (b) contest the due organization and valid existence of the Issuer, (c) contest the v'alidity, due authorization and execution of the Bonds, the Bond Resolution, the Indenture, this Bond Purchase Agreemem or the Tri-Party Agreement, or (d) attempt to limit, enjoin or otherwise restrict or prevent the Issuer tTom collecting Contract Tax Increments; (v) no event affecting the Issuer has occurred smct' the date of the Limited Offering Memorandum which "hould be chsc10sed In thelmited Offenng Memorandum for the purpose for which it is to be llsed or whIch it is necessarv to disclose therein in order to make the statements and information t herein, I n lIght of the cIrcumstances under which made. not misleading in any respect as of the !lme of Closing; (Vl1 the l!1formatlOn contained in the Limited Offering Memorandum with respect to the Bonds. the Issuer and the Issuer's affairs is true and correct in all material respects and, as of the date of the Limited Offering Memorandum, the Limited Offering Memorandum, with respect to such information, did not, and as of the date of the Closing does not, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or 1<'X733.\ 8 necessary to make the statements with respect to the Issuer and the Bonds made therein, in the light of the circumstances under which they were made, not misleading; and (vii) with respect to mformation in the Limited Otfenng Memorandum other than the information relating to the Bonds. the Issuer and the Issuer's affairs, he or she has no reason to believe that such mformation contains any untrue statement of a material fact or omits to state a material fact required t\) be stated therein or necessary to make the statements made therein, in light of the '.;lrcumstances under which they were made, not misleading; (8) A certificate of the Issuer signed by an appropriate official of the Issuer (a) 'ietting torth the lacts, estimates and cIrcumstances in existence on the date of the Closing, which establish that It 1S not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to he "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue ('ode of 1986. as amended (the "Code"). and any applicable regulations (whether final, temporary or proposed). issued pursuant to the Code, and (b) certifying that to the best of the knowledge and belief of the Issuer there are no other facts, estimates or circumstances that would materially change the conclusions. representations and expectations contained in such certificate; (9) (he approving opmion of McCall, Parkhurst & Horton L.L.P., as bond l:ounseL In substantially thl' form set forth in the Limited Offering Memorandum; ( 10) !~. supplemental opinion of bond counsel addressed to the Issuer and the nderwn1t:r. substanriaHy 10 the effect that: (] ) the Issuer has duly approved and authorized the distribution of the Limited Otfering Mem(irandum: (J i) the Bonds are exempted secunhes under the Securities Act of 1933, as amended (the "]y,13 Act"), and it is not necessary, in connection with the offering and sale of the Bonds. to register any securities under the I 933 Act and neither the Bond Resolution nor the Indenture need he qualified under the Trust Indenture Act of 1939 (the "Trust Indenture 4ct"); (ili) the intonnation contained in the Limited Offering Memorandum under the headings "THE SERIES 2006 BONDS," "PLAN OF FINANCING," "SECURITY AND SOURCE OF PAYMENT," "THE ISSUER," "THE ZONE," "LEGAL MATTERS," 'T AX MATTERS," and "LEGAL INVESTMENT AND ELIGIBILITY TO SECURE PUBLIC FUNDS IN TEXAS" fairly summarizes the matters of law and the information purported to be .;hown therein and the documents included in Appendices A, Band E conform to the respective documents delivered at ('Iosmg; and (1\) stating that the Underwriter may rely on the approving Opinion of Bond Counsel described as if it were addressed to it: (11.i An opinion of the City Attorney of the City, as general counsel to the Issuer, substantially to the etfect set torth in Exhibit B hereto; ( 121 An opinion of the City Attorney of the City as general counsel to Reinvestment Zone Two or a certificate from the City, to the effect that Reinvestment Zone Two ~"78733.3 9 1S validly created and m full force and effect and the Tri-Party Agreement was duly authorized executed ,md delivered and is a valid and binding obligation of Reinvestment Zone Two, enforceable in accordance with ltS temlS, except to the extent that its enforceability may be limited by applicable provisions of the federal bankruptcy laws and any other similar laws affecting the rights of lreditors of political subdivisions generally, and except that such enforceabIlity is subject to general principles of equity and the exercise of judicial discretion i regardless of whether such enforceabilitv is considered in a proceeding in law or at equity); ( I 3) I:vidence satisfactory to the Underwriter, which may take the form of a legal opmlon of counsel tc the eit:.;. or a certificate from the City. to the effect that the Tri-Party -\greemenL and the City Interlocal Agreement was duly authorized, executed and delivered are \alid and binding obligations of the City enforceable in accordance with their respective terms; (14) Ividence satisfactory to the Underwriter, which may take the form of a legal Opll110n \)1' counsel to the County or a certificate from the City, to the effect that the County lnterlocal Agreement was duly authorized, executed and delivered and is a valid and binding obligation ufthe County enforceable in accordance with its terms: ( 15) Fvidence satisfactory to the Underwriter, which may take the form of a legal opmlOn of counsel 10 the College, or a certificate from the City, to the effect that the ('ollege Interlocal Agreement was duly authorized, executed and delivered and is a valid and hinding obligation ofthe College, enforceable in accordance with its terms; ( 16) E VIdence satisfactory to the Underwriter, which may take the form of a legal opmion of counsel te the Hospital District, or a certificate from the City, to the effect that the Hospital District lnterlocal Agreement was duly authorized, executed and delivered and is a valid and bmding obligation ofthe Hospital District enforceable in accordance with its terms; ( I 7} An opinion. dated the date of the Closing and addressed to the nderwnter. of Fulbright &. Jaworski L [ P, Undef\vriter's counsel, to the effect that: (i I the Bonds are exempted securities under the 1933 Act and it is not necessary, 111 connection with the offering and sale of the Bonds, to register any securities under the 1933 Act and neither the Bond Resolution nor the Indenture need be qualified under the Trust Indenture i\ ct; and (11) based upon their participation in conferences at which the Limited Offering Memorandum was discussed, but without having undertaken to determine mdependently the accurac) completeness or fairness of the statements contained in the Limited Offering Memorandum, such counsel has no reason to believe that the Limited Offering Memorandum contams an\ untrue statement of a material fact or omits to state a material fact necessarv to make the statements therein, in light of the circumstances under which they were made, not misleading (except for any tinancial, forecast, technical and statistical statements and data included in the Limited Offering Memorandum, in each case as to which no view need be expressed). (18) The approving opinion of the Attorney General of the State of Texas in respect ()fthe Bonds: +'77873.' 3 10 ( 19) The registration certificate of the Comptroller of Public Accounts of the State of fexas in respect of the Bonds; and (20) Such additional legal opmIOns. certificates, instruments and other documents as Bond Counsel, the Underwriter or counsel to the underwriter may reasonably request 10 evidence the truth and accuracy, as of the date hereof and as of the date of the Closing, of the Issuer's representations and warranties contained herein and of the statements and the due performance or satisfaction by the Issuer on or prior to the date of the Closing of all the respective agreements then to be performed and conditions then to be satisfied by the Issuer. All \)1 the opinions, letters, certificates, instruments and other documents mentioned above or else\\ here in this Bond Purchase Agreement shall be deemed to be in Gomplianct' with the proviSions hereof it but only If they are in form and substance satisfactory :0 the Underwntet. If the Issuer shall be unable to satisfy the conditions to the obligations of the nderwn ter to purchase. to accept deli very of and to pay for the Bonds contained in this Bond Purchase Agreement. or if the obligations of the Underwriter to purchase, to accept delivery of md to pay f(x the Bonds shall be terminated for any reason permitted by this Bond Purchase \greement. this Bond Purchase Agreement shall terminate and neither the Underwriter nor the Issuer shall be under any further obligation hereunder, except that the check referred to in Paragraph I shall he immediately returned to the Underwriter by the Issuer. 8. Termination. The Underwriter shall have the right to cancel its obligation to purchase the Bonds if between the date of this Bond Purchase Agreement and the Closing, the market price or marketabil1ty of the Bonds shall be materially adversely affected in the sole Judgment of the Underwriter reasonably exercised (as evidenced by a written notice to the Issuer terminating the obligation 01 the Undenvriter to accept delivery of and pay for the Bonds), by the occurrence of any of the tollowing: (al Adverse Effect on Income Tax Status. Legislation shall be enacted by or mtroduced in the Congress or recommended to the Congress for passage by the President of the ( 'nited States. or the Treasury Department of the United States or the Internal Revenue Service I'r favorably reported for passage to either House of the Congress by any committee of such House to whIch such legI slatlon has been referred tor consideration. a decision by a court of the t nited States or of the State dr the United States Tax Court shall be rendered, or an order, ruling, regulation (final. temporary ur proposed), press release, statement or other fonn of notice by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made or proposed, the effect of any or all of which would be to lmpose, directly or mdirectl~, federal income taxation upon interest received on obligations of the general character of the Bonds, of the interest on the Bond as described in the Limited Oftering Memorandum, nr other action or events shall have transpired which may have the purpose or effect. directly or mdirectly, of changing the federal income tax consequences of any df the transactions contemplated herem, or any other action or events shall have occurred which, m the reasonable judgment IIf the Underwriter, materially adversely affect the market for the Bonds or the market price generally of obligations of the general character of the Bonds; 4)''''X7~3.~ 11 (b ~ Adverse Effect on Securities Law Exemptions. Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree, or injunction issued by any court ot competent jurisdiction. or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice Issued or made by or on behalf of the United States SecuritIes and Exchange Commission, or any other governmental agency having jurisdiction of the subject matteL to the effect that obligations of the general character of the Bonds, including any or all underlying aITangements, are not exempt from registration under or other requirements )f the ! 9\~ Act. or that the Bond Resolution is not exempt from qualification under or other requirements (If the Trust Indenture Act. or that the Issuance. offering, or sale of obligations of the general character ot the Bonds, mcluding any and all underlying arrangements, as contemplated hereh) or h\ the Limited Offering Memorandum or otherwise, is or would be in \lOlation \lfthe federal securities law as amended and then in effect; h':) SuspensIOn on Moratorium. A general suspension of trading in securities on the \Jew York Stock Exchange or the American Stock Exchange, the establishment of minimum prices on either such exchange. the estahlishment of material restrictions (not in force as of the date hereof) upon trading securities generally by any governmental authority or any national securities achange. a general banking moratorium declared by federal, State of New York, or State officIals authoTIzcd tl \ do so: (d) Change of Law. Any amendment to the federal or Texas Constitution or action hy any tederal or Texas court. legislatIve body. regulatory body, or other federal or Texas ~tuthorit\ materiall)- adversely aftecting the tax status of the Issuer, its property, income, securities (or interest thereon). or the validity or enforceability of the assessments or the levy of taxes generating Contract Tax Increment. or the ability of the Issuer to receive Contract Tax Increment trom the City. the County, the Hospital District or the College; {d Adverse Effect on Disclosure. Any event occurring, or information becoming known whIch. in the reasonable judgment of the Underwriter, makes untrue in any material respect any material statement or information contained in the Limited Offering Memorandum, \ Ir has the effect that the Limited Offering Memorandum contains any untrue statement of material fact or omits to state a matenal fact required to be stated therein or necessary to make the statements therein. in the light of the circumstances under which they were made, not misleadIng ( n Material Change. There shall have occurred since the date of this Bond Purchase Agreement any materially adverse change III the affairs or financial condition of the Issuer; (g) Armed Conflict. The United States shall have become engaged in hostilities which have resulted in a declaration of war or a national emergency, or there shall have occurred any other (Iutbreak or substantial escalation of existing hostilities or a national or international l'alamit) or crisis. financial or otherwIse. the effect of such outbreak, calamity or crisis on the tinancial markets of the United States being such as, in the reasonable opinion of the l inderwnter. would materially and ad\ersely affect the ability of the Underwriter to market the Bonds: 1"7787333 12 (h) Amendment of Supplement. Any fact or event shall exist or have existed that, in the Underwriter's reasonable judgment, requires or has required an amendment of or supplement to the LImited Offering Memorandum: and I .1 Prohibition A12.ainst Resale. The purchase of and payment for the Bonds by the ( inderwnteL or the resale of the Bonds by the Underwriter, on the terms and conditions herein provided shall he prohibited by any applicable law. governmental authority, board, agency or :ommlSSlon 9. l:-xpen...e.,. (a) The Underwriter shall be under no obligation to pay. and the Issuer shall pay, the following expenses lI1cidem to the perfonnance of the Issuer's obligations hereunder, including, hut not limited to (1) the .:ost of preparation and printing of the Bonds; (ii) the fees and disbursements of Bond Counsel: (iii) the fees and disbursements of any other engineers, accountants. and other experts. consultants or advisors retained by the Issuer; (iv) the costs of preparing. printing and mailing the Limited Offering Memorandum; (v) fees of the Issuer's financial advisor; (VI) the transcript review fee of the Attorney General of Texas; (vii) the fees and expenses of the Paymg Agent/Registrar and Trustee: (viii) the out-of-pocket, miscellaneous ,md closlI1g expenses. induding the cost of travel, of the officers of the Issuer; [(ix) the fees and disbursements of counsel retained hy the Underwriter;] and (x) any other expenses mutually agreed to bv the Issuer and the Undervmter to be reasonably considered expenses of the Issuer whIch are inCIdent to the transaction~ contemplated hereby. (b) The l nderwnter shall pay (i) the cost of preparation and printing of this Bond Purchase Agreement: (ii) all advertising expenses III connection with the offering of the Bonds; and (iii) all other expenses incurred }1y it in connection with the offering of the Bonds. to. Notices. Any notice or other communication to be given to the Issuer under this Bond Purchase Agreement may be gIven by delivering the same in writing to North Padre Island Development Corporation, 201 Leopard. Corpus Christi, Texas 78401, Attention: Executive DIrector, and any notice ur other communication to be given to the Underwriter under this Bond Purchase /\greement may be given by delivering the same in writing to M.E. Allison & Co., Inc., liSO East Basse Road. Second Floor. San Antonio. Texas 78209. 11. Partie.,- in Interest. This Bond Purchase Agreement as heretofore specified shall constitute the entire agreement between us and is made solely for the benefit of the Issuer and the lnderwriter (including successors or assigns of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof. This Bond Purchase Agreement may not be assigned by the Issuer. All of the Issuer's representations, warranties and agreements contained III this Bond Purchase Agreement shall remain operative and in full force and effect, regardless of (i) any investigations made by or on behalf of the Underwriter; (ii) delivery of and payment for the Bonds pursuant to this Bond Purchase Agreement; and (iii) any termination of this Bond Purchase Agreement. .<;'78733.3 13 12. Effectiveness. This Bond Purchase Agreement shall become effective upon the acceptance hereof by the Issuers and shall be valid and enforceable at the time of such acceptance 13, Choice of Law. This Bond Purchase Agreement shall be governed by and construed l!1 accordance with the law of the State of Texas. 14, Severability. If any provIsion of this Bond Purchase Agreement shall be held or deemed to be or shall. in face he invalid, inoperative or unenforceable as applied in any particular case in any Jurisdiction or junsdictions. or In all jurisdictions because it conflicts with any prOVlSlon of any Constitution. statute, rule of public policy, or any other reason, such circumstances shall not ha ve the effect of rendering the provision In question invalid, inoperative or unentorceable in any dther case l)f circumstance. or of rendering any other provision or provisions of this Bond Purchase Agreement invalid. Inoperative or unenforceable to any extent whatever 15, Business Day. For purposes of this Bond Purchase Agreement, "business day" means any day on which the New York Stock Exchange is open for trading. 16. Section Headings. Section headings have been inserted in this Bond Purchase Agreement as a matter ot convenience of reference only. and it is agreed that such section headings are not a part of this Bond Purchase Agreement and will not be used in the mterpretatlOn of any proviSIOns of this Bond Purchase Agreement. 17. Counterparts. This Bond Purchase Agreement may be executed in several counterparts each of which shall be regarded as an original (with the same effect as if the signatures theret(\ and hereto were upon the same document) and al I of which shall constitute one and the same document [EXEClTTION PAGE FOllOWS] 4 'i77873 3.3 14 I I you agree with the foregomg, please sign the enclosed counterpart of this Bond Purchase Agreement and return it to the Underwriter. This Bond Purchase Agreement shall hecome a binding agreement between you and the Underwriter when at least the counterpart of this letter shall have been slgned by or on behalf of each of the parties hereto. Respectfully submitted, M.E. ALLISON & CO., INe. By: _____ Title: Accepted this __ day of .2006. NORTH PADRE ISLAND DEVELOPMENT CORPORA TION By: ___________ Title: 45-78733.3 15 Dated Date: Principal Amount: Waturity Date: Interest Rate: Interest Payment Dates: Retlemption Provision.': EXHIBIT A BOND TERMS July 1,2006 (Bonds bear interest from date of delivery). S2.900.00() September] 5,2022 Coupon OJ () Yield % March 15 and September 15. commencing March 15, 2007 ~)ptional Redemption.- The Bonds are subject to redemption prior to maturity at the \)ption of the Issuer. in \vhole or in part. from time to time on [ 1, or any date thereafter. at a price equal to the principal amount of Series 2006 Bonds to be redeemed, plus a premium equal to the fpllowing percentages of principal amount: RedemptlOn Penod From Septemher 15. From Septemher 15. i From September 15. i From September !5. From September 15. From September] 5. Percentage _ J t(l September 14. [ o.~ [.-J% J tel September 14. _J [ ]% ] to September 14. [ 01 [.-J% ] to September 14. [ ~ [.-J% ] to September 14, L. .~ [-.J% ] and fhereafter 0.0% provided. that If any Bond is selected f()r redemption in part it shall not be redeemed in an amount that would. upon exchange. result in a Bond in a denomination less than $100,000. Mandatory Smkmg Fund Redemption.- The Bonds are subject to mandatory sinking fund redemptlOn prior to maturitv in the amounts and on the dates set out in the attached Schedule A. The Bonds to be redeemed in any year by mandatory sinking fund redemption shall be selected by lot from the Bonds then subject to redemption; provided, that if any Bond is selected for redemption III part it shall not be redeemed in an amount that would, upon exchange, result in a Bond in a denomination less than S 1 00.000. l~77873~ 3 Exhibit A- Page 1 fhe principal amount of Bonds required to be redeemed on each such redemption date pursuant to the foregomg operation of the mandatory sinking fund redemption shall be reduced, at the optIon of the Issuer by the principal amount of the bonds which, at least 45 days prior to the mandatory smkmg funds redemption date, (I) shall have been acquired by the Issuer and delivered to lPMorgan Chase Bank. National Association, as paying agent/registrar (the "Paying 4gent/Reglstrar") for cancellation or (2) shall have been acquired and canceled by the Paying c\gent/R eglstrar at the direction of the Issuer, in either case of (]) or (2) at a price not exceeding the par ,n principal amount of such Bonds, or (3) shall have been redeemed pursuant to the uptional redemptIon pmvi~lons described above and not theretofore credited against a mandatory sinking tund redemption. During any penod in which ownership of the Bonds is determined by a hook entry at a secuntles depository tIn the Bonds. If fewer than all of the bonds of the same maturity and bearing the ,ame interest rate are to be redeemed. the particular Bonds of such maturity tn be redeemed .;hall be selected in accordance with the arrangements between the Issuer and the secuntie~ depOSitory provIded, that if any Bond is selected for redemption in part 11 shall nor be redeemed In an amounl that would result. upon exchange, in a Bond in a denominatIOn less than i\ 1 UO.OOO. ~, 7'18733.3 Exhibit A - Page 2 A TT ACHMENT A TO EXHIBIT A September 15 Principal Amount Total 2,900,000 .- * maturity h 7787333 Attachment A to Exhibit A - Page 1 EXHIBIT B OPINION OF GENERAL COUNSEL TO THE ISSUER The Issuer IS validly existing as a not-for-profit local government corporation in good standing under the laws of the State of Texas It is exempt from payment of federal income taxes on its income fhe Issuer has the corporate power to execute, deliver and perform its obligations under the Bond Purchase Agreement, the Bond Resolution, the Indenture, the Bonds, and the Tri- Party Ab,Tfeement. and to pledge the Contract Tax Increments to be received by it and the other moneys. rights and mterests pledged pursuant to the Indenture. The Issuer has duly authorized, executed and delivered the Bond Purchase Agreement. the Bond Resolution, the Indenture, the Bonds, and the Tri-Party Agreement. 4 fhe Bond Resolution, the Indenture, the Purchase Agreement, and the Tri-Party "\greement constItute the legal. \alid and binding obligations of the Issuer enforceable in accordance with their term."', except as the enforceability thereof may be subject to or limited by applicable bankruptcy. msolvency. reorganization. arrangement, moratorium, and other similar laws relating to or affectmg credltors' rights generally. and subject as to enforceability, to general principles of equity " fhe execution, delivery and performance by the Issuer of the Bond Resolution, the Indenture, the Bond Purchase Agreement, and the Tri-Party Agreement do not require the authorization, approval or consent of any governmental authority, except for such authorizations, :lpprovals Of' consents as hale already been obtained. 6 The execution and delivery of the Bond Resolution, the Indenture, the Bond Purchase Agreement. and the Tn-Party Agreement, and compliance with the terms and provisions uf each thereof, will not contlict with or constitute a breach of or default under, or, except with respect to the pledge of the Pledged Revenues (as such term is defined in the Indenture) under the Indenture, result in the creation of any lien, charge or encumbrance under ia) the Articles of Incorporation or Bylaws of the Issuer; (b) any material indenture, mortgage, deed of trust. agreement or other instrument known to us to which the Issuer is a party or is otherwise subject to or bound; or (c) any order, law. rule or regulation applicable to the Issuer of any court or other governmental bodv of which we are aware. 7 There IS no action. suit, proceeding or investigation at law or in equity before or bv any court. against or affecting the Issuer wherein an adverse determination would affect the corporate power of the Issuer to make or perform its obligations under the Bond Purchase Agreement, the Bond Resolution. the Indenture or the Tri-Party Agreement, or which would impair the issuance. sale or delivery of the Bonds. 8. The Issuer has pledged. and all necessary action on the part of the Issuer has been taken as required to pledge under the Indenture, all of the Issuer's right, title and interest in the Pledged Revenues to the Trustee on behalf of the holders of the Bonds. .,nR733.3 Exhibit B - Page I 'j The Issuer. s pledge of the Pledged Revenues is valid and binding in accordance with its terms wIthout further action on Its part and without any tiling or recording with respect thereto except In the records of the Issuer. o Nothing in any statute. regulation, order or rule of law applicable to or affecting the Issuer eIther grants or affords to the Issuer the benefit of any claim or defense of sovereign or governmental immunity from. or athen-vise operates to exempt the Issuer from service of, process ,n suit in an appropriate court having jurisdiction over the Issuer in connection with any contract claim which may be asserted WIth respect to the matters which are the subject of the Bonds, the Bond Res,)lutlon. the Indenture. the Bond Purchase Agreement or the Tri-Party '\greemem I The mtomlation conta1l1ed in the LImited Offering Memorandum under the heading "THE ISSUER' and ., fHE lONE" fairly summarizes the matters of law and mformatlOn purported to bl' shown therein 4~778733.3 Exhibit B - Page 2 25 CITY COUNCIL AGENDA MEMORANDUM May 30, 2006 AGENDA ITEM: ResolutIon approving the resolution by the North Padre Island Development Corporation authorizing the issuance of Series .W06 Bonds in an aggregate principal amount not to exceed $2,900,000. ISSUE: In November 2000, the Citv Council approved an ordinance creating the Reinvestment Zone # 2 in connectIOn with development of a channel and other facilities in the Packery Channel area. After a petition. the Co unci I suhmi tted the ordinance to the voters in April 200 I, and the voters approved the ordinance fhe Cit\ of Corpus (,hnst! and the North Padre Island Development Corporation have authorized through the bond indentures the issuance of up to $12,000,000 in bonds to fund the PackeryChannel project. To date. $lJ, I 00,000 in bonds has been issued, leaving a remainder to be issued of S2,900.000 A f<lUrth issue in an amount not to exceed $2,900,000 is now needed to cover costs through the end of the proJl:ct. REQUIRED COUNCIL ACTION: Approval of the resolutIOn lS required. PREVIOliS COUNCIL ACTION: · On October I, 2002. City Council approved the formation of the North Padre Island Development CorporatlOn and approved its articles of incorporation. · On December 17. 2002 City Council approved a resolution authorizing the issuance of North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2002, in an aggregate principal amount not to exceed $3,000,000. The first series of bonds (Series 2003 Bonds) were subsequently issued in April 2003 in the amount 01'$2,500,000. · On November II. 2003. City Council approved a resolution authorizing the issuance of North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2003A Bonds in an aggregate principal amount not to exceed $2,500,000. · On July 14. 2004, City ('ouncil approved a resolution authorizing the issuance of North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2004, in an aggregate principal amount not to exceed $4,500,000. Subsequently in September 2004, $4,1 oo.uno III bonds was issued. · On September lJ, 2005, City Council approved a resolution expressing official intent to reimburse costs of the Packery Channel Improvement Project in the amount of $500,000. · On January 24,2006, City Council approved a resolution expressing official intent to reimburse costs of the Packerv Channel Improvement Project in the amount of $400,000. · On April 25. 2006. City Council approved a resolution expressing official intent to reimburse costs, If Packery Channel Improvement Projects, FUNDING: Bonds to fund the Packen Channel project will be payable solely from the Tax Increment Fund, Reinvestment Zone No, 2, and not from other city revenues, RECOMMENDATION: City Staff recommends the approval of the resolution by the North Padre Island Development Corporation authorizing the issuance of Series 2006 Bonds in an aggregate principal amount not to exceed S2.900.000 G .cL, D'&~ Cindy ~:;;:;;,,( Director of Financial Services Attachments: Background InformatIOn ResolutIon Resolution submItted to the North Padre Island Development Corporation BACKGROUND IN FORMA TION North Padre Island Development Corporation, a not-for-profit local government corporation, was established by the City of Corpus Christi ("the City") under the provisions of Chapter 431, Texas fransportation Code, and the general laws of the State of Texas to aid, assist, and act on behalfofthe City in the performance 01 the City's governmental functions and to provide a means of financing certain project costs In connection with Reinvestment Zone Number Two, City of Corpus Christi, r exas. It IS governed hy a Board of Directors, whose members are appointed by the City Council. In November 2000. the Reinvestment Zone #2 was created by the City Council, pursuant the provisions of the Tax Increment Financmg Act ("TlF Act"), Chapter 311, Texas Tax Code to tacilitate development of a channel and other facilities in the Packery Channel area. After a petition, the City Council submItted the ordmance to the voters in April 2001, which the voters approved. rhe Zone became etlectlve on November 14,2000, and will terminate on December 31,2022, or at an earlier time designated by subsequent ordinance of the City, or at an earlier time that all zone project costs, tax mcremenl bonds and the interest on all tax increment bonds, have been paid in full. '\s reqUIred under the "J IF \ct the lone Board prepared. and the City Council approved, a Project Plan and Remvestment Zone Financing Plan (the "Plan") on February 25,2003. The Plan includes Information concernmg proposed land uses and development, estimated project and non-project costs and admmlstrati ve expense..., engineering studies. proposed financing and economic feasibility data, and property appraisal data rhe City ot Corpus Christi and the l .S. Army Corps of Engmeers entered into a Project Cooperation :\greement m order to faCilitate the construction of the Packery Channel Project. Of the total S30,656.948 projected cost of the Project, the City as Project sponsor has agreed to pay 35% ofthe lotal projected cost (or approximately $] 0.733,049). The remaining Project costs are to be paid by the United States Government. The CIty has created the Zone for the purpose of raising funds needed to provide the Zone Project Costs The project costs include approximately $1,538,461 of damage caused by Hunicanes Rita. Katnna, and Emily, and approximately $1,435,109 of cost overruns The Zone intends to also expend approximately $500,000 for recreation improvements, $800,000 t()r parking costs and establishment of a maintenance reserve. From the onset, it was stated that bonds to fund the project would be payable solely from the tax increment fund and not trom other cIty revenues. and that the transaction would be designed to completely insulate general CIty revenues from hability nn the hnnds. RESOLUTION APPROVING THE RESOLUTION BY THE NORTH PADRE ISLAND DEVELOPMENT CORPORATION AUTHORIZING THE ISSUANCE OF SERIES 2006 BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2.9 MILLION WHERtAS North Padre Island Development Corporation (the "Corporation") was created under the auspices of the City of Corpus Christi. Texas (the "City"); and WHERE:AS. the Corporation was created in part for the purpose of assisting the Reinvestment Zone Number Two. City of Corpus Christi, Texas (the "Zone") in implementing the "Project and Financing Plan" with respect to the economic development of property within the Zone; and WHEREAS. the Corporation by resolution adopted May 30, 2006 authorized the issuance of the hereinafter described bonds for the purposes described in said resolution; and WHERE AS. it IS deemed necessary and advisable that this Resolution be adopted. THEREFORE. BE ITRESOL VED BYTHECITYCOUNCIL OFTHE CITY OF CORPUS CHRISTl THAT Section J. The resolution (the "Resolution") adopted by the Corporation, in substantially the form and substance as attached to this Resolution and made a part hereoffor all purposes, is hereby approved. and tax increment contract revenue bonds in a principal amount not to exceed $2,900,000 (the "Bonds"). may be Issued for the purpose of providing all or a portion of the cost of the project as specified in the Resolution (the "Project"); and said Resolution, Bonds and Project are hereby appro\ ed Section 2 This Resolution shall be effective immediately from and after its passage. RESOLUTION AUTHORIZING THE ISSUANCE OF NORTH PADRE ISLAND DEVELOPMENT CORPORA nON TAX INCREMENT CONTRACT REVENUE BONDS, SERIES 2006, IN AN AGGREGA TE PRINCIPAL AMOUNT NOT TO EXCEED $2,900,000; APPROVING A BOND PURCHASE AGREEMENT AND OTHER CONTRACT DOCUMENTS RELATING TO THE SERIES 2006 BONDS; AND CONTAINING OTHER PROVISIONS RELATED THERETO BE IT RESOL\ED BY THE BOARD OF DIRECTORS OF THE NORTH PADRE ISLAND DEVELOPMENT CORPORATION: ARTICLE I RECITALS WHEREAS, by Ordinance No. 024270, adopted on November 14, 2000 (the "Creation Ordinance"). the City of Corpus Christl, Texas (the "City"), created a tax increment reinvestment zone known as "Reinvestment Zone Number Two. City of Corpus Christi, Texas" ("TIRZ Two"), pursuant to the provisIOns of Chapter 311. Texas Tax Code. and approved a preliminary reinvestment zone financing plan for TIRZ Two; and \VHEREAS, by Resolution No. 025040, adopted on October 8, 2002, the City authorized the creatIon of the North Padre Island Development Corporation (the "Corporation") to aid, assist and act on behalf ofthe Cit y ir the pertormance ofthe City's governmental and proprietary functions with respect !O the common good and general welfare ofthe City. as described in the Creation Ordinance; and WHEREAS, on February 25 2003, the Corporation adopted a "RESOLUTION AUTHORIZING THE ISSUA,l\,ICE OF NORTH PADRE ISLAND DEVELOPMENT CORPORA TION TAX INCREMENT CONTRACT REVENUE BONDS, SERIES 2003, IN AN AGGRFGA TE PRINCIPAL AMOUNT NOT TO EXCEED $3 MILLION; APPROVING AN INDENTURE OF TRUST AND OTHER CONTRACT DOCUMENTS RELATING TO THE BONDS; AND CONTAI'lING OTHER PROVISIONS RELATED THERETO (the "Initial Bond Resolutl<)ll"i: and WHEREAS, pursuant to the ten1l5 of the Initial Bond Resolution, the Corporation approved that certam Indenture ufTrust by and between the Corporation and lPMorgan Chase Bank, National AssoClation (the successor to JPMorgan Chase Bank) dated as of February 1,2003 (the "Indenture"), pursuant to which the Corporation set forth the terms and conditions by which it could issue, sell or deliver IlS bonds. notes 01 other obligations in accordance with the terms of the Indenture to fund Project Costs fClr the benefit ofTlRZ Two, established various Funds and Accounts for the benefit of the owners of such bonds, notes or other obligations, and assigned and pledged to the Trustee such Funds and Accounts for the benefit of such owners: and WHEREAS, pursuant to the terms of the Initial Bond Resolution, the Corporation approved that certam Tri-Party Agreement by and between the City, TlRZ Two, and the Corporation dated as of February 1 2003 (the ''Tri-Party Agreement"), pursuant to which the Corporation was delegated the pO\Ner and authority! 0 issue. sell or deliver its bonds, notes or other obligations in accordance with tht: tenTL.'l of the Tri.Party Agreement; and WHEREAS. on Februal) 25. 2003, the City approved the terms of the Initial Bond ResolutIon, the sale of bonds in an amount not to exceed $3,000,000. and approved the Indenture and the lri-Party L\greement: and WHEREAS. pursuant to the terms of the Initial Bond Resolution and the Indenture, on April 30,2003, the Corporation issued and delivered its North Padre Island Development Corporation Tax Increment Contract Revenue Bonds. Series 2003. issued in the aggregate principal amount of $2,500.000 (the "Senes ~'003 Bonds" i: and WHEREAS. the ( orporatlon reserved the right in the Indenture to issue "Additional Parity Bonds" (as defined in the Indenture) on a parity with the Series 2003 Bonds; and WHEREAS, on I\ovember I 1.2003, the City approved the terms ofa resolution authorizing the sale of bonds in an amount not to exceed $2,500,000 (the "Series 2003A Resolution"); and WHEREAS, pursuant to the terms of the Series 2003A Resolution and the Indenture, on December 18. 2003. the Corporation issued and delivered its North Padre Island Development CorporatIon Tax Increment Contract Revenue Bonds, Series 2003A, issued in the aggregate principal amount of$2,500.000 (the "Series 2003A Bonds") on a parity with the Series 2003 Bonds; and WHEREAS, on July 13. 2004, the City approved the terms ofa resolution authorizing the sale of bonds III an amount not to exceed $4.500,000 (the "Series 2004 Resolution"); and \VHEREAS, pursuant to the terms of the Series 2004 Resolution and the Indenture, on October 20. 2004. the ('orporatlon issued and delivered its North Padre Island Development Corporation Tax Increment Contract Revenue Bonds, Series 2004, issued in the aggregate principal amount of$4,1 00,000 (the "Series 2004 Bonds") on a parity with the Series 2003 Bonds and the Series 2003A Bonds: and WHEREAS, the bonds hereinafter authorized are the fourth series ofbonds to be issued under the terms of the Indenture. shall constitute "Additional Parity Bonds". and upon the delivery of the bonds hereinafter authorized, the aggregate principal amount of the bonds issued by the Corporation as "Parity Bonds" (as defined in the Indenture) will not exceed $12,000,000; and WHEREAS. the City is not located in a county with a population of 2.1 million or more residents: and WHEREAS. as permitted by Chapter 431. Texas Transportation Code, as amended, the Corporation desires to issue bonds hereinafter authorized upon the terms and conditions and for the purposes herein provided -2- ARTICLE II DEFINITIONS AND INTERPRETATIONS -...--.-- SectIOn 2. j. Definitions. In thIS Resolution. the following tenus shall have the following meanmgs, unless the context clearly indicates otherwIse. Tenus not defmed herein shall have the meanmgs assigned to "iuch temlS ill the Indenture: rhe term "AudiC shall mean the audited annual financial statements of the Corporation prepared by an independent auditor The tenn ,. Authonzed Denominations" shall mean $ I 00,000 or any integral multiple of$5,000 in exu~ss of $] 00.000 rhe tenn "Authonzed Representative" shall mean the President or any Vice President of the CorporatIon. the Ex.ecutive Director of the Corporation. or any other person designated by the Board of Directors of the Corporation to act in 'iuch capacity The tenn "Bond Resolution" shall mean, collectively, this Resolution and the resolutions authorizmg the issuance of the Series 2003 Bonds. the Series 2003A Bonds and the Series 2004 Bonds rhe tenn "(' omptroller" shall mean the Comptroller of Public Accounts of the State of Texas. Ihe tenn "Dared Date" shall mean, with respect to the Series 2006 Bonds, the date so designated in the Purchase Contract. The tenn "Designated Trust Office" shall mean the designated corporate trust office of the Registrar, which. as of the date of adoptIon of this Resolution, is located in Dallas, Texas. The ternl "Indenture" shall mean the Indenture of Trust dated as of February 1, 2003 between the Corporation and lPMorgan Chase Bank. National Association (the successor to lPMorgan Chase Bank) and its successors 111 that capacity The term "Issuance Date" shall mean the date on which the Series 2006 Bonds are authenticated by the Registrar and delivered to and paid for by the Underwriter. The teml "MAC" shall mean the Municipal Advisory Council of Texas. The teml "MSRB" shall mean the Municipal Securities Rulemaking Board. -3- The term ")\RMSI R" shall mean each person whom the SEC or its staff has determined to be a nationally recognued municipal secunties information repository within the meaning ofthe Rule from lIme to lime. The ternl "Paymg Agent" shall mean the Registrar. The teon "Project" shall mean the improvements described in the Project and Financing Plan to be tinanced with the proceeds of the Series 2006 Bonds. The tenn "Purchase Contract" shall mean the Bond Purchase Agreement between the Corporat Ion and the Underwriter, executed under authority of this Resolution. The teon "Record Date" shall mean, for any Interest Payment Date, the last Business Day of the month next preceding each Interest Payment Date. The term "Registrar" shall mean JPMorgan Chase Bank, National Association, and its successors in that capacity hereto The teon "Resolution" shall mean this resolution, and all amendments hereofand supplements The teon "Rule" shall mean SEe Rule 15c2-12, as amended from time to time. fhe tenn "SEe" shall mean the UllI1ed States Securities and Exchange Commission. The term "Series 2003 Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds. Series 2003. onginally issued in the aggregate principal amount of$2,500,000. fhe term "Series 2003A Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds. Series 2003A origmally issued in the aggregate principal amount of$2,500,000. The term "Series 2004 Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds. Series 2004. \)riginally issued in the aggregate principal amount of$4, 100,000. rhe teon "Series 2006 Bonds" or "Bonds" shall mean the Corporation's Tax Increment Contract Revenue Bonds, Series 2006. authorized by this Resolution. rhe term "SID" shall mean any person designated by the State of Texas or an authorized department. officer. or agency thereof as. and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. fhe tenn'Underwnter" shall mean M.E. Allison & Co., Inc. -4- SectIOn 2.2: Interpretations. All tenns defined herein and all pronouns used in this Resolution shall be deemed to apply equally to singular and plural and to all genders. The titles and headings of the articles and sections of this Resolution have been inserted for convenience ofreference only and are not [0 be cnnsidered a part hereof and shall not m any way modifY or restrict any of the tenns or proVisions hereof This Resolution and all the tenus and provisions hereof shall be liberally construed to effectuate the purposes set forth herem and to sustain the validity of the Parity Bonds and the validity ofthe lien on and pledge of the Pledged Revenues to secure the payment of the Parity Bonds. ARTiCLE III TERMS OF THE BONDS SectlOn 3 I : MaXImum Amount, Purpose, Authorization. The Series 2006 Bonds shall be issued In fully registered fonn, without coupons, numbered consecutively from R-l upward, in the aggregate principal amount not to exceed $2,900,000 for the purpose of( 1) paying Project Costs and (2) paymg Costs of Issuance, all under and pursuant to the authority of the Act and all other applicable law. None of the proceeds of the Series 2006 Bonds shall be used for the purpose of paying or otherwIse proViding for educatIOnal facilities Section 3.2: Sale of the Series 2006 Bonds. The Authorized Representative is hereby authorized to act for and on behalf of the Corporation in connection with the issuance and sale ofthe Series 2006 Bonds I n that capacity, the Authorized Representative, acting for and on behalf of the Corporat Ion. shall detennine the date fl.)r issuance and sale of the Series 2006 Bonds and shall approve. execute and deliver the Purchase Contract with the Underwriter. Interest on the Series 2006 Bonds shall be payable on the date or dates described in the Purchase Contract (the "Interest Payment Dates") The Series 2006 Bonds shall bear interest at the fixed rate or rates per annum calculated on the baSIS of a 360-day year of twelve 30-day months. as set forth in the Purchase Contract. There shall be "et forth in the Purchase Contract the principal amount of the Series 2006 Bonds to be sold (in no event. however, to exceed the maximum principal amount authorized in Section 3.1 hereof), the price at whIch the Senes 2006 Bonds shall be sold. the principal amortization schedule for the Serie... 2006 Bonds (lI1cluding, without limitation, the maturity date or dates for the Series 2006 Bonds (the "PrinCIpal Installment Payment Dates") and the designation of any of the maturities of the Series 2006 Bonds as tenn bonds and any sinking fund payments to be deposited to the credit of the Debt Service Fund relating to any tenn bond so designated), the redemption features of the Series 2006 Bonds. the rate or rates of interest to be borne by the Series 2006 Bonds, the Dated Date ofthe Series 2006 Bonds. and other matters relating to the issuance, sale and delivery ofthe Series 2006 Bonds, mcluding, without limitation. the designation given to the Series 2006 Bonds and the obtainmg of insurance or 'lther fonn.'i of credit enhancement with respect to the Series 2006 Bonds; provided. that the Purchase Contract must provide for the Series 2006 Bonds to be sold on tenns that produce (1) interest rate 01 rates for the Series 2006 Bonds in a multiple of 118 of 1 % or 1120 of 1% or 1/ 100 of 1%, (iil a "net effective interest rate" not in excess of 10.00%, (iii) a final maturity date of the Senes 2006 Bonds that shall not extend beyond December 15, 2022, and (iv) interest rates -5- such that the highest mterest rate on any Series 2006 Bond does not exceed the lowest interest rate on such Series 2006 Bonds by more than 4.00%. The Authorized Representative's approval of the Purchase Contract shall be conclusively evidenced by his or her execution thereof. Section 3.3: Execution of Series 2006 Bonds. The Series 2006 Bonds shall be signed on behalf of the Corporation by an Authorized Representative and countersigned by the Secretary by their manual, lithographed, or facsimile signatures. Such facsimile signatures on the Series 2006 Bonds shall have the same effect as if each of the Series 2006 Bonds had been signed manually and in person by each of said officers I f any officer of the Corporation whose manual or facsimile signature shall appear ('0 the Series 2006 Bonds shall cease to be such officer before the authentIcation of such Series 2006 Bonds or before the delivery of such Series 2006 Bonds, such manual \)r facs1111i1e signature shall nevertheless be valid and sufficient for all purposes as if such officer had remained In s\lch office Section 3.4. Approval By Attorney General; Registration by Comptroller. The Series 2006 Bonds to be initially issued shall be delivered to the Attorney General of Texas for examination and approval and shall be registered by the Comptroller. By approving this Resolution, the City Council shall have authorized the payment of the fee of the Office of the Attorney General of the State of Texas for the exammation of the proceedings relating to the issuance of the Series 2006 Bonds on behalf of the Corporallon. in the amoun! determined in accordance with the provisions of Section 1202.004. Texas Government Code. The manually executed registration certificate 0 fthe Comptro lier substantially m the torm provided in Exhibit A to this Resolution shall be affixed or attached to the Series 2006 Bonds to be mitially issued and delivered to the Underwriter. ;;ection 3.5: 6uthentication. Except for the Series 2006 Bonds to be initially issued, which need not be authenticated by an authorized signatory of the Registrar. only such Series 2006 Bonds as shall bear thereon a certificate olauthentication substantially in the form provided in Exhibit A to this Resolution, manually executed by an authorized signatory of the Registrar, shall be entitled to the benefits of this Resolution or shall be valid or obligatory for any purpose. Such duly executed certificate of authentication shall be conclusive evidence that the Series 2006 Bond so authenticated was delivered by the Registrar hereunder. The Registrar, when it authenticates a Series 2006 Bond, shall cause the Dated Date to be stamped. typed or imprinted on such Series 2006 Bond. Series 2006 Bonds issued on transfer of or in exchange for other Series 2006 Bonds shall bear the same Dated Date as the Series 2006 Bond or Series 2006 Bonds presemed for transfer or exchange, ~ectioJL1.Q E'!Y!!1ent of PrinCipal and Interest. The Registrar is hereby appointed as the registrar and paying agent tor the Series 2006 Bonds The principal of the Series 2006 Bonds shall be payable, without exchange or collection charges, in any coin or currency of the United States of America which, on the date of payment, is legal tender for the payment of debts due the United States of America, upon their presentation and surrender as they respectively become due and payable, whether at maturity or by prior redemption, at the Designated Trust Office. The interest on each Series 2006 Bond shall be payable by check payable on the Interest Payment Date, mailed by the Registrar on or beh)re each Interest Payment Date to the Owner of record as of the Record Date, to -6- the address of such Owner as shown on the Register, or by such other method, acceptable to the Registrar. requested hy and at the risk and expense of the Owner. I f the date for the payment of principal or interest on any Series 2006 Bond is not a Business Day. then the date for such payment shall be the next succeeding Business Day, and payment on such date shall have the same f()rce and effect as ifmade on the original date such payment was due. SectiOn 3. -, Successor Registrars The Corporation covenants that at all times while any Series 2006 Bonds are Outstanding it will provide a commercial bank or trust company organized under the laws of the Ull1ted States of America or State of Texas or other entity duly qualified and legallv authorized to act as Registrar for the Series 2006 Bonds. The Corporation reserves the right to change the RegIstrar f(lr the Senes 2006 Bonds on not less than sixty (60) days written notice to the Reglstrar. so long as emy such notice IS effective not less than sixty (60) days prior to the next succeedmg Principal Installment Payment Date or Interest Payment Date on the Series 2006 Bonds. Promptly upon the appointment of any successor Registrar, the previous Registrar shall deliver the Register or a copy thereo f to the new Registrar, and the new Registrar shall notifY each Owner, by United States mail. fIrst class postage prepaid. of such change and of the address of the new Registrar foach RegIstrar hereunder. h: acting in that capacity, shall be deemed to have agreed to the pn)\ISIOnS of this -';ec Ion. 'lectiOn 3.g Special Record Date. If interest on any Series 2006 Bond is not paid on any Interest Payment Date and continues unpaid for thirty (30) days thereafter, the Registrar shall establlsh a new record date for the payment of such interest. to be known as a "Special Record Date." The Registrar shall establIsh a Special Record Date when funds to make such interest payment are received from or on behalfofthe Corporation. Such Special Record Date shall be fifteen (15) days pnor to the date fLxed for payment of such past due interest. and notice of the date of payment and the SpeCial Record Date shall be sent by United States mail, fIrst class postage prepaid, not later than five ( ,,) days pnor to 1 he Special Record Date, to each Owner or record of an affected Series 2006 Bond as of the close of business on the day prior to the mailing of such notice. ~ectlon 3.9: Ownership; Unclaimed Principal and Interest. Subject to the further provisions of this Section, the Corporation. the Registrar and any other person may treat the person in whose name anv Series 2006 Bond is regIstered as the absolute Owner of such Series 2006 Bond for the purpose of making and receiving payment of the principal of or interest on such Series 2006 Bond, and f()r all other purposes, whether or not such Series 2006 Bond is overdue, and neither the Corporation nor the Registrar shall be bound by any notice or knowledge to the contrary. All payments made to the person deemed to be the Owner of any Series 2006 Bond in accordance with this SectIon 3.9 shall be valid and effectual and shall discharge the liability of the Corporation and the Registrar upon such Serie~ 2006 Bond to the extent of the sums paid \mounts held by the Registrar which represent principal of and interest on the Series 2006 Bonds remaining unclaimed by the Owner after the expiration of three (3) years from the date such _7_ amounts have become due and payable shall be reported and disposed of by the Registrar in accordance with the applicable provisions of the Paying Agent Agreement. Section 3.10: RegIStration, Transfer, and Exchange. So long as any Series 2006 Bonds remain Outstanding, the Registrar shall keep the Register at the Designated Trust Office and, subject to such reasonable regulations as it may prescribe, the Registrar shall provide for the registration and transfer of Series 2006 Bonds in accordance with the terms of this Resolution. Each Series 2006 Bond shall be transferable only upon the presentation and surrender thereof at the Designated Trust Office of the Registrar, duly endorsed for transfer, or accompanied by an assignment duly executed by the Registered Owner or his authorized representative in form satisfactory to the RegIstrar. Upon due presentation of any Series 2006 Bond in proper form for transfer, the Registrar shall authenticate and deliver in exchange therefor, within three (3) Business Days after such presentation, a new Series 2006 Bond or Series 2006 Bonds, registered in the name of the transferee or transferees, in Authorized Denominations and of the same maturity, aggregate principal amount, and Dated Date, and bearing interest at the same rate as the Series 2006 Bond or Series 2006 Bonds so presented. Anything to the contrary herein notwithstanding, no Series 2006 Bond shall be Issued in a denomination ofless than $100.000. !\ll Senes 2006 Bonds shall be exchangeable upon presentation and surrender thereof at the Designated Trust Office of the Registrar tC)J a Series 2006 Bond or Series 2006 Bonds of the same maturity. Dated Date. and interest rate and III any Authorized Denomination, in an aggregate amount equal to the unpaid principal amount of the Series 2006 Bond or Series 2006 Bonds presented for exchange The RegIstrar shall be and is hereby authorized to authenticate and deliver exchange Series 2006 Bonds in accordance \vith the provisions of this Section 3.10. Each Series 2006 Bond delivered in accordance with this Section 3.10 shall be entitled to the benefits and security of this Resolution to the same extent as the Series 2006 Bond or Series 2006 Bonds in lieu of which such Series 2006 Hond IS delivered. rhe Corporation or the Registrar may require the Owner of any Series 2006 Bond to pay a sum sufficIent to cover any tax or other governmental charge that may be imposed in connection with the transfer or exchange 01 such Series 2006 Bond. Any fee or charge of the Registrar for such transfer or exchange shall be paid by the Corporation. fhe Registrar shall not be required to transfer or exchange any Series 2006 Bond during the period beginning on a Record Date or a Special Record Date and ending on the next succeeding Interest Payment Date or to transfer or exchange any Series 2006 Bond called for redemption during the penod begirming thirty days prior to the date fixed for redemption and ending on the date fixed for redemption: proVIded. hllwever, that this limitation shall not apply to the exchange by the Owner of the unredeemed portion of a Series 2006 Bond called tor redemption in part. Section 3.11. Cancellation of Series 2006 Bonds. All Series 2006 Bonds paid or redeemed In accordance with this Resolution, and all Series 2006 Bonds in lieu of which exchange Series 2006 -8- Bonds or replacement Series 2006 Bonds are authenticated and delivered in accordance herewith, shall be canceled and thereafter !reated in accordance with the Registrar's document retention policIes Section }, 12: Mutilated, Lost, or Stolen Series 2006 Bonds. Upon the presentation and surrender to the Registrar of a mutilated Series 2006 Bond, the Registrar shall authenticate and deliver In exchange therefor a replacement Series 2006 Bond of like maturity, Dated Date, interest rate and principal amount. bearing a number not contemporaneously Outstanding. The Corporation or the Registrar may requITe the Owner of such Series 2006 Bond to pay a sum sufficient to cover any tax ur other governmental charge that may be imposed in connection therewith and any other expenses connected therewith. mcluding the fees and expenses of the Registrar. if any Senes 2006 Bond is lost. apparently destroyed, or wrongfully taken, the Corporation, pursuant to the applicable laws of the State of Texas and in the absence of notice or knowledge that such Series 2006 Bond has been acquired by a bona fide purchaser, shall execute and the Registrar shall authenticate and delIver a replacement Series 2006 Bond oflike maturity, Dated Date, interest rate and principal amount. bearing a number not contemporaneously Outstanding, provided that the Owner thereof shall have , I ) furnished 10 the Registrar satisfactory evidence of the ownership of and the circumstances of the loss. destruction or theft: of such Series 2006 Bond; i 2) furnIshed such security or indemnity as may be required by the Registrar to .,ave it and the Corporation harmless; I .~) paId all expenses and charges in connection therewith, including, but not limned to. printing costs, legal fees, fees of the Registrar and any tax or other governmental charge that may be imposed; and 14 t met any other reasonable requirements of the Corporation and the Registrar. If, after the delivery of such replacement Series 2006 Bond, a bona fide purchaser of the original Series 2006 Bond in lieu of which such replacement Series 2006 Bond was issued presents for payment such original Series 2006 Bond, the Corporation and the Registrar shall be entitled to recover such replacement Series 2006 Bond from the person to whom it was delivered or any person taking therefrom, except a bona fide purchaser, and shall be entitled to recover upon the security or indemnity pnlVlded theretor to the extent of any loss. damage, cost or expense incurred by the Corporation or the Registrar III connection therewith. I f any such mutilated, lost, apparently destroyed or wrongfully taken Series 2006 Bond has become or is about to become due and payable, the Corporation in its discretion may, instead of issuing a replacement Senes 2006 Hand. authorize the Registrar to pay such Series 2006 Bond. -4- Each replacement Series 2006 Bond delivered in accordance with this Section 3.12 shall be entitled to the benefits and security of this Resolution to the same extent as the Series 2006 Bond or Series 2006 Bonds in lieu of which such replacement Series 2006 Bond is delivered. Section 3.13: Redemption. The Series 2006 Bonds are subject to redemption under the condltions, on the dates, and for the redemption prices set forth in the Purchase Contract, which shall be incorporated mto the Form of Bond set forth in Exhibit A hereto. Ifless than all of the Series 2006 Bonds are to be redeemed. the Corporation shall determine the particular Series 2006 Bonds or pOltions thereof to be redeemed. Principal amount~ may be redeemed only in integral multiples of $5,000. If a Series 2006 Bond subJect to redemption is in a denomination larger than $100,000. a portion of such Series 2006 Bond may be redeemed, but only in integral multiples of $5,000 and so long as the unredeemed portion of any Series 2006 Bonds so redeemed in part is not less than $100,000. Upon surrender of any Series 2006 Bond tor redemption in part, the Registrar, in accordance with Section 3.10 hereof, shall authenticate and deliver in exchange therefor a Series 2006 Bond or Series 2006 Bonds of like matunty. Dated Date, and interest rate m an aggregate principal amount equal to the unredeemed portiun It/the Senes 200(> Bond so surrendered. l nless waived by rhe Owner. notice of any redemption identifYing the Series 2006 Bonds to be redeemed ill whole or ill part shall be given by the Registrar at least thirty (30) days prior to the date fixed for redemptlon hy sending written notice by United States mail, first class postage prepaid, to the Owner of each Senes 2006 Bond to be redeemed in whole or in part at the address shown on the Register. Such notice.., shall state the redemption date, the redemption price, the place at which Series 2006 Bonds are tt) be surrendered for payment and. if less than all Series 2006 Bonds Outstanding of a particular maturitv are to be redeemed, the numbers of the Series 2006 Bonds or portions thereof of such maturity to be redeemed. Any notice given as provided in this Section 3.13 shall be L'oncluslveJy presumed to have been duly given, whether or not the Owner receives such notice By the date tixed fi)r redemption, due provision shall be made with the Registrar for payment of the redemption price ot the Series 2006 Bonds or portions thereof to be redeemed, plus accrued interest to the date fixed f()[ redemption When Series 2006 Bonds have been called for redemption in whole or in part and due provision has been made to redeem the same as herein provided, the Series 2006 Bonds or portions thereofso redeemed shall no longer be regarded as Outstanding except for the purpose of receiving payment solely from the funds so provided for redemption, and the rights of the Owners to collect interest which would otherwise accrue after the redemption date on any Series 2006 Bond or portion thereof called for redemption shall terminate on the date fixed for redemptlOI1. Should ownership t. fthe Series 2006 Bonds be established in accordance with the book-entry- only system of The Depository Trust Company ("DTC"), the Paying Agent for the Series 2006 Bonds shall notifY DTC that in the exercise by DTC of the selection of Series 2006 Bonds for redemption, the Series 2006 Bonds shall be so selected by DTC in such a manner that no beneficial owner of Series 2006 Bonds shall o~n less than $1 00,000 in principal amount of any Series 2006 Bonds of any one maturity. -10- Section 3. 14 Lnnited Obligations. THE SERIES 2006 BONDS ARE A LIMITED OBLIGATION OF THE CORPORA.TION, PAYABLE SOLELY, TOGETHER WITH THE CURRLNTLY OtTSTANDING PARITY BONDS, OUT OF THE TRUST ESTATE, WHICH IS THE SOLE ASSET OF THE CORPORATION PLEDGED THEREFOR. THE SERIES 2006 BONDS ARE OBLIGATIONS SOLELY OF THE CORPORATION AND DO NOT CONSTITUTE. WITHIN THE MEANING OF ANY STATUTORY OR CONSTITUTIONAL PROVISION, A1\ I1\DFBTEDNESS, AN OBLIGATION OR A LOAN OF CREDIT OF THE CIT'! OF CORPl. S CHRISTI. 1 HE STATE OF TEXAS. NUECES COUNTY, TEXAS, DEL MAR COLLEGE. NUICES COUNTY HOSPITAL DISTRICT. REINVESTMENT ZONE NUMBER 1'\\0 CITY OF CORPUS CHRISTI. TEXAS. OR ANY OTHER MUNICIPALITY, COt NTY. OR OTHF.R MUNICIPAL OR POLITICAL CORPORATION OR SUBDIVISION OF THE STATE OF TEXAS NEITHER THE CITY OF CORPUS CHRISTI, NUECES COUNTY, TEXAS DEL \1AR COLLEGE. NUECES COUNTY HOSPITAL DISTRICT NOR REINVI~STMEN'I lONE NUMBER TWO, CITY OF CORPUS CHRISTI, TEXAS ARE OBLIGATED TU MAKE PAYMENTS ON THE SERIES 2006 BONDS OR THE OUTSTANDING PARITY BONDS. ARTICLE IV FORM OF SERIES 2006 BONDS AND CERTIFICATES SectIOn 4.1. [0m1~. The tonn ()fthe Series 2006 Bonds. including the form of the Registrar's authentication certificate. the j()fl11 of assignment, and the form of the Comptroller's Registration Certiticate for the Senes 2006 Bonds to be initially issued. shall be in substantially the form as set forth In Exhibit A tu this ResolutIon. )ectlOn 4.2 Legal Opinion; (usip Numbers; Bond Insurance. The approving opinion of Bond Counsel and CUSIP Numbers may be printed on the Series 2006 Bonds, but errors or omissions in the printing of such opinion or such numbers shall have no effect on the validity of the Series 2006 Bonds. Ifbond insurance IS obtained by the Underwriter, the Series 2006 Bonds may bear an appropriate legend as proVIded by the insurer I\RTICLF \ ADDITIONAL BONDS ~ectionU: AddItional Parity Bonds. The Corporation reserves the right to issue, for any lawful purpose (including the refunding of any previously issued Parity Bonds), one or more series of AdditIOnal Parity Bonds payable from and secured by a first lien on the Pledged Revenues, on a parity WIth the Series 200., Bonds, the Series 2003A Bonds, the Series 2004 Bonds and the Series 2006 Bonds; provided. however. that Additional Parity Bonds may be issued only in accordance with the pnlVISlons of Article 1[1 of the Indenture. Section 5.2. Subordinate Lien Obligations. The Corporation reserves the right to issue, for any lawful purpose. Subordinate Lien Obligations secured in whole or in part by liens on the Pledged Revenues that are junior and subordinate to the lien on Pledged Revenues securing payment of the -II Parity Bonds" Such Subordinate Lien Obligations may be further secured by any other source of payment lawfully available for such purposes. SectlOn 5.3: Reserve Fund. No Reserve Fund has been established for the benefit of the Series 2006 Bonds The Corporation reserves the right to establish a Reserve Fund for the benefit of the Senes 2003 Bonds, the Series 2003A Bonds, the Series 2004 Bonds, the Series 2006 Bonds or any Additional Panty Bonds. SectlOn 5.4. Representations Regarding Series 2006 Bonds Issued as Additional Parity Bonds. The Corporation hereby represents that I a) The Serie~ 2006 Bonds mature on, and interest is payable on, the Principal Installment Payment Dates and Interest Payment Dates, respectively; and h) rhe Corporation is not In material default with the tenns of the Indenture, any Bond Resolution. the Tri-Party '\greement or any other agreement to which it is a party. The ( orporation further represents that upon the issuance of the Senes 2006 Bonds, the aggregate princIpal amount of Parity Obligations issued by the Corporation to fund Project Costs will not exceed ~ 12.000.000. and therefore the Corporation is not required to satisfY the requirements of subsectlons (c) or (d) ,)f Section 3" 2 ofthe Indenture with respect to the issuance of the Series 2006 Bonds '\RTICLE VI GENERAL COVENANTS SectIon 6.1 Punctual Payment of Parity Bonds. The Corporation will punctually payor cause to be paid the interest on and principal of all Parity Bonds according to the tenns thereofand will faithfully do and perfonn, and at all times fully observe, any and all covenants, undertakings, stipulations and provisions contained in this Resolution and in any resolution authorizing the issuance of Additional Parit") Bonds Section 6.2: Maintenance ofTIRZ Two. So long as any Parity Bonds remain Outstanding, the Corporation covenants that it will, within the limits of its authority, comply with all contractual proviSIons and agreements entered lllto by it and with all valid rules, regulations, directions or orders of any governmental, admmistrative, or judicial body promulgating same, noncompliance with which would materially and adversely affect the operation of TIRZ Two. Section 6.3 Accounts, Records, and Audits. So long as any Parity Bonds remain Outstanding, the CorporatIon covenants and agrees that it will maintain a proper and complete system of records and accounts pertaining to the operation ofTIRZ Two and the Corporation in which full, true and proper entries will be made or all dealings, transactions, business and affairs which in any way atfect or pertain to TIRZ Two, the Corporation or the Pledged Revenues. The Corporation shall after the close of each Fiscal Year cause an Audit to be prepared by an independent certified public -[2- accountant or mdependent fiml of certified public accountants. All expenses incurred in preparing Audits shall be mamtenance and operation expenses. Section 6.4: Pledge and Encumbrance of Pledged Revenues. (a) The Corporation covenants and represents that it has the lawful power to create a lien on and to pledge the Pledged Revenues to secure the payment of the Parity Bonds and has lawfully exercised such power under the Constitution and laws of the State nfTexas. The Corporation further covenants and represents that, other than to the payment of the Parity Bonds, the Pledged Revenues are not and will not be made subject to any other lien pledge or encumbrance to secure the payment of any debt or obligation of the Corporation. unless such lien. pledge or encumbrance is junior and subordinate to the lien and pledge securing payment ufthe Parity Bonds. i b) The provistons of subsection (a) of this Section 6.4 notwithstanding, the lien on, pledge of. and rights in and to the Pledged Tax Increments established, made, and granted in the Indenture and pursuant to subscctJon (a) of this Section 6.4 shall constitute a first and senior lien thereon, subject only to the nghts, if any of the holders of bonds or other obligations that have been heretof()re or are hereafter issued by a Parttcipant that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the Participant. \ C) Each of the Pal1icIpanb has agreed to contribute its Contract Tax Increment to the Tax Increment Fund. in accordance with the Act and its Participant Contract, and that each of the PartiCIpants. other than the District, has agreed to contribute and is currently contributing as its Contract Tax Increment 100% of its Tax Increment. Each of the Participants, other than the District, has agreed to contribute ItS Contract Tax Increment to the Fund for the term of the Zone, which is scheduled to expire on December) I. 2022. In the District Agreement, the District has agreed to contribute 100% of 118 ( untract lax Increment to the Fund in the first five years of the District Agreement, 80~[) of ItS I 'ontract Tax Increment to the Fund in the sixth year of the District Agreement, 60~'[) of Its Contract fax Increment to the Fund in the seventh year of the District Agreement, 40(~,o of Its ('ontract Tax Increment to the Fund in the eighth year of the District Agreement, 2()'% of.ts f, 'ontract Tax Increment to the Fund in the ninth year of the District Agreement, with such obhgation of the District ending after the ninth year of the District Agreement. The (orporation \vIlluse reasonable efforts to cause the Participants to levy and annually assess and collect ad valorem taxes at such rates and amounts as may be necessary and required to pay in full and on a timely basIs all debt service reqUIrements on each Participant's respective outstanding bonds or other obligations that are payable in whole or in part from and secured by a general levy of ad valorem taxes throughout such Participant without resort to the use of any portion of the Contract Tax Increment derIved frpm the tax collections of such Participants for such purpose, and to cause the portIon of such taxes representing Contract Tax Increments to be paid to the Tax Increment Fund. Section 6.5, Owners' Remedies [his Resolution shall constitute a contract between the .'_.,---- ---' -- Corporation and the Owners of the Parity Bonds from time to time Outstanding and this Resolution shall be dnd remain Irrepealable until the Parity Bonds and the interest thereon shall be fully paid or discharged or provision therefor shall have been made as provided herein. In the event of a default in the payment of the principal of or mterest on any of the Parity Bonds or a default in the performance of any duty (if covenant proVided by law or in this Resolution, the Owner or Owners -13- of any of the Parity Bonds may pursue all legal remedies afforded by the Constitution and laws ofthe State at Texas to compei the Corporation to remedy such default and to prevent further default or defaulb. Without in any way limiting the generality of the foregoing, It is expressly provided that any Owner Ilf any of the Parity Bonds may at law or ill equity, by suit, action, mandamus, or other proceedmgs. enforce and compel performance of all duties required to be performed by the Corporation under this Resolution. the deposit of the Pledged Revenues into the special funds herein provided. and the application of such Pledged Revenues in the manner required in this Resolution. The j()regoing notwithstanding. acceleration ofthe Parity Bonds is not an available remedy. The sole source of the Corporation available for the payment of debt service on the Bonds is and shall be the Pledged Revenues ,"ectlOn 6.6 Discharge by DeposIt. The Corporation may discharge its obligation to the Owners of any or all of the Parity Rands to pay principal, interest and redemption premium (if any) thereon III any manner then pennitted by law, including, but not limited to, by depositing with any paying agent for such Panty Bonds either: (i) cash in an amount equal to the principal amount and redempt Ion premium. If any, of such Parity Bonds plus interest thereon to the date of maturity or redemption, or (ii) pursuant to an escrow or trust agreement, cash and/or direct noncallable, nonprepayable 'lbligatlon:-. of the United States of America, in principal amounts and maturities and bearing interest at rates sufficient ;0 provide for the timely payment of the principal amount and redempt Ion prelnium. jf any, of such Parity Bonds plus interest thereon to the date of maturity or redemptIOn; provided. however. that if any of such Parity Bonds are to be redeemed prior to their respective dates of matunty, proVision shall have been made for giving notice of redemption as provided in the resoJutlOn authonzing such Parity Bonds Upon such deposit, such Parity Bonds shall no longer be regarded to be Outstanding or unpaid. Section 6.7 Registrar and rrustee May Own Parity Bonds. The Registrar and Trustee for the Parity Bonds. in their corporate or any other capacity, may become holders or pledges of the Parity Bonds With the ..,ame rights they v,ould have if they were not the Registrar or Trustee. Section ().~. No Recourse Against Corporation Officials. No recourse shall be had for the payment of principal of or interest on any Parity Bonds or for any claim based thereon or on this Resolution agamst any official of the Corporation or any person executing any Parity Bonds. No member of the Board 0 Directors of the Corporation or any officer, agent, employee or representative of the Corporation in his individual capacity, nor the officers, agents, employees or representatives of the Corporation nor any person executing the Series 2006 Bonds shall be personally liable thereon or be subject to any personal liability or accountability by reason of the issuance thereof. whether by virtue of any constitution, statute or rule oflaw, or by the enforcement of any assessment or penalty, or otherwise. all such liability being expressly released and waived as a condition of and in consideration f(lr the adoption of this Resolution and the issuance of the Series 2006 Bonds. Section 6.9: punctual Payment of Contractual Obligations. The Corporation will punctually payor cause to be paid any payment obligations made by the Corporation under the terms of a contract hereafter executed and delivered by the Corporation of the nature described in Section 5.2. -] 4- t\RTICLE VII PROVISIONS CONCERNING SALE AND APPLICATION OF PROCEEDS OF SERIES 2006 BONDS Section 7.1. Execution of Documents to Effect Sale of Series 2006 Bonds. EachAuthorized Representative and other appropriate officers, agents and representatives of the Corporation are herehv authorized to do emy and all things necessary or desirable to provide for the issuance and deliver) of the Series 2006 Bonds Section 7.2. Application of Proceeds. Proceeds from the sale of the Series 2006 Bonds shall, promptly upon receipt by the Trustee, be applied in the manner provided for in a certificate executed by an Authorized Representative. Proceeds from the sale of the Series 2006 Bonds representing premIUm, ifany, paid by the Undenvriter in connection with the sale of the Series 2006 Bonds may be used for any purpose authorized by Section 1201.042(d), Texas Government Code, as directed in a cert1f1cate executed bv an Authorized Representative. ARTICLE VIII lAX EXEMPTION SectIon 8.1: General Tax Covenants. The Corporation covenants to refrain from any action which would adversely affect, or to take any action to assure, the treatment of the Series 2006 Bonds as obligations described 111 section 103 () f the Code, the interest on which is not includable in the "gross mcome" of the holder f()r purposes of federal income taxation. In furtherance thereof, the Corporation covenants as follows \a) to lake any actIOn to assure that no more than 10 percent of the proceeds of the Series 2006 Bonds or the projects fmanced therewith (less amounts deposited to a reserve fund. if any) are used for any "private business use", as defmed in section l4l(b)(6) of the Code or, ifmore than 10 percent of the proceeds are so used, that amounts, whether or not received by the Corporation, with respect to such private business use, do not, under the term.;; of this ()rdmance or any underlying arrangement, directly or indirectly, secure or provide for the payment of more than 10 percent of the debt service on the Series 2006 Bonds. m contravention of section 141 (b)( 2) of the Code; (b) to take any action to assure that in the event that the "private business use" described in subsection (a) hereof exceeds 5 percent of the proceeds of the Series 2006 Bonds or the projects financed therewith (less amounts deposited into a reserve fund, ifany) then the amount to excess 0 f 5 percent is used for a "private business use" which is "related" and not "disproportionate" within the meaning ofsection 141 (b)(3) of the Code, to the governmental use; -15- (c I to take any action to assure that no amount which is greater than the lesser of ",5,000.000 or 5 percent of the proceeds of the Series 2006 Bonds (less amounts deposited mto a reserve lumL if any), IS directly or indirectly used to finance loans to persons, other than ,tate or local governmental units. m contravention of section 141(c) of the Code; (d) to refrain from taking any action which would otherwise result in the Series 2006 Bonds being treated as "private activity bonds" within the meaning of section 141(a) of he Code; e) to refram trom taking any action that would result in the Series 2006 Bonds heing "federallv guaranteed" withm the meaning of section] 49(b) of the Code; \ 1) to refrain from using any portion of the proceeds of the Series 2006 Bonds, directly or mdJreclly, to acquire or to replace funds which were used, directly or indirectly, to acqUire mvestment property (as defmed in section 148(b)(2) of the Code) which produces a matenally hIgher yield over the term of the Series 2006 Bonds, other than investment property acqUlred \vith -- ( I ! proceeds ofthe Series 2006 Bonds invested for a reasonable temporary penod of three years or less until such proceeds are needed for the purpose for which 1 he Senes?006 Bonds are issued. (2) amounts mvested in a bona fide debt service fund, within the meaning of scctlOn I 148-1 (b) of the Regulations. and \ 3) amounts deposited in any reasonably required reserve or replacement lund tu the extent such amounts do not exceed 10 percent of the proceeds of the Sent'S :10011 Bonds; (g) to otherwise restnct the use of the proceeds of the Series 2006 Bonds or amounts treated as proceeds of the Series 2006 Bonds, as may be necessary, so that the Series 2006 Bonds do not otherwise contravene the requirements of section 148 of the Code (relating to arbitrage) and, to the extent applicable. section 149(d) of the Code (relating to advance refundings); and (h) to pay to the United States of America at least once during each five-year period (beginning on the date of delivery of the Series 2006 Bonds) an amount that is at least equal to 90 percent of the "Excess Earnings", within the meaning of section l48(t) of the Code and to pay to the United States of America, not later than 60 days after the Series 2006 Bonds have been paid in full, 100 percent of the amount then required to be paid as a result of Excess Fammgs under section 148(t) of the Code. The CorporatIon understands that the term "proceeds" includes "disposition proceeds" as defined in the Treasury Regulations and, in the case of a refunding bond, transferred proceeds (if any) and proceeds of the refunded bonds expended prior to the date of the issuance ofthe Series 2006 Bonds. It is the understanding oftne Corporation that the covenants contained herein are intended to assure -16- compliance with the ( ode and any regulations or rulings promulgated by the U.S. Department of the Treasury pursuant thereto In the event that regulations or rulings are hereafter promulgated which mod1f'y or expand provisions of the Code, as applicable to the Series 2006 Bonds, the Corporation will not be required to comply with any covenant contained herein to the extent that such failure to comply. in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from iederal income taxatlOn of interest on the Series 2006 Bonds under section 103 ofthe Code. In the event that regulations OJ rulings are hereafter promulgated which impose additional reqUIrements which are applicable to the Series 2006 Bonds, the Corporation agrees to comply with the additional requirements to the extent necessary. in the opinion of nationally-recognized bond counsel. 10 preserve the exemption from federal income taxation of interest on the Series 2006 Bonds under section 103 of the Code. In furtherance of the foregoing, any Authorized Representative may execute any certificates OJ other reports required by the Code and to make such elections, on behalf of the ( orporation. which may be pennitted by the Code as are consistent with the purpose for the issuance of the Series 200h Bonds. In order to facilitate compliance with the above clause (h), there has been established In the Indenture a "Rebate Fund" for the sole benefit of the United States of Amenca. and such Rebate Fund shall not be subject to the claim of any other person, including without lirnitation the RegIstered Owners of the Series 2006 Bonds. The Rebate Fund is established for the additIOnal purpose of compliance with section 148 of the Code. SectIOn 8.2 :~llocation ot~ and Ll11utation on, Expenditures for the Project. The Corporation covenants to account for nn its books and records the expenditure of proceeds from the sale of the Series 2006 Bonds and any investment earnings thereon to be used for the payment of Project Costs by allocating proceeds to expenditures within 18 months of the later of the date that (a) the expenditure on a Project is made or (b) each such Project is completed. The foregoing notwlthstandmg. the Corporation shall not expend such proceeds or investment earnings more than 60 da vs after the later ,)f (d) the tlfth anmversary of the date of delivery of the Series 2006 Bonds or (b I tlw date the Sefll's 2006 Bonds are retired, unless the Corporation obtains an opinion of nationally-recognized bond counsel substantially to the effect that such expenditure will not adversely affect the tax-exempt status of the Series 2006 Bonds. For purposes ofthis Section, the Corporation shall not be obligated to c\\mply with this covenant ifit obtains an opinion of nationally-recognized bond counsel to the eflect that such failure to comply will not adversely affect the excludability for federa! I1lcome t ax purposes from gross Illcome 0 f t he mteresL ~ection 8.3. DispOSition of Project. The Corporation covenants that the property constituting a ProJect will not be ...,old or otherwise disposed in a transaction resulting in the receipt by the Corporation of cash or other compensation, unless the Corporation obtains an opinion ofnationally- recognized bond counsel substantially to the effect that such sale or other disposition will not adversely affect the tax-exempt status of the Series 2006 Bonds. For purposes of this Section, the portion '.If the property comprising personal property and disposed of in the ordinary course of business ..,hall not be treated as a transaction resulting in the receipt of cash or other compensation. For purposes of th]s Section, the Corporation shall not be obligated to comply with this covenant if it obtams an opimon oj nat lOnal1y-recognized bond counsel to the effect that such failure to comply will not adversely affect the excludability for federal income tax purposes from gross income of the interest on the Senes 2006 Bonds -17- ARTICLE IX ~ONTINUING DISCLOSURE UNDERTAKING Section 9. I. Annual Reports. (a) That the Corporation shall provide annually, within six months after the end of each Fiscal Year ending in or after 2006, fmancial information and operating data with respect to the Corporation of The general type described in Exhibit B hereto provided that such mtc)rmation and data is customarily prepared by the Corporation. Such information shall be provided to any person upon request made to the Corporation provided that the Corporation reserves the right at any time to commence making such annual filings with the SID (if any, and ifnone, to each NRMSIR) ill lieu of providing such information upon request. Any financial statements so to be proVIded shall be ( I ) prepared in accordance with the accounting principles described in Exhibit B hereto. or such other accounting prmciples as the Corporation may be required to employ from time to time pursuant to 'itate law or regulation. and (2) audited, if the Corporation commissions an audit of such statements and the audit is completed within the period during which they must be provided. If the audit ofsuch tlnancial statements LS not complete within such period, then the Corporation shall provide unaudited financIal statements by the required time and shall provide audited [mancial statements for the applicable Fiscal Year to each NRMSIR and any SID. when and ifthe audit report on such ..,tatements oen)Ow available. ( h) If the ('L)rporat Ion changes Its Fiscal Year, it will notifY the SID of the change (and ofthe date of the new Fiscal Year end) prior to the next date by which the Corporation otherwise would be required to provide tinancial information and operating data pursuant to this Section. The financial informatlOn and operat mg data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statemem or other offering document, if it is available from the MSRB) that theretofore has been provided to the SID or filed with the SE<' Section 9.2: Matenal Event Notices. The Corporation shall notifY any SID and the MSRB, ina timely manner. of any of the following events with respect to the Series 2006 Bonds, ifsuch event IS material within the meanmg of the federal securities laws: -, !)rincipal and interest payment delinquencies; \Ion-payment related defaults; I ]nscheduled draws on debt service reserves reflecting fmancial difficulties; llnscheduled draws on credit enhancements reflecting [mancial difficulties; Substitution (If credit or liquidity providers, or their failure to perform; \dverse tax opinions or events affecting the tax-exempt status of the Series ':::006 Bonds; Modifications to rights of holders of the Series 2006 Bonds; Series 2006 Bond calls; I )efeasances; Release, substitution, or sale of property securing repayment of the Series 2006 Bonds; and Rating changes. 3 4 :\ 6 7 8 Ii. In. II -18- The Corporation shall notifY any SID and the MSRB, in a timely manner, of any failure by the Corporation to provide financial information or operating data in accordance with Section 9.1 by the time required by such Section. Any filing under this Section may be made solely by transmitting such filing to the MAC as provided at http)/www.disclosureusa.org, unless the SEC has withdrawn the interpretIve advIce stated ill its letter to the MAC dated September 7. 2004. Section 9.3: LiIrutations, Disclaimers, and Amendments. (a) The Corporation shall be obligated to observe and perform the covenants specified in this Article for so long as, but only for so long as, the CorporatIOn remains an "obligated person" with respect to the Series 2006 Bonds withm the meaning of the Rule, except that the Corporation in any event will give notice of any deposit made in accordance with this Resolution or applicable law that causes Series 2006 Bonds no longer In be Outstandlllg i b) The provIsion, of this Article are for the sole benefit of the holders and beneficial owners of the Series 2006 Bonds. and nothmg III this Article, express or implied, shall give any benefit or any legal or equitable nghL remedy. or claim hereunder to any other person. The Corporation undertakes to pruv!de onl) the finanCIal mforrnatioll. operating data, fmancial statements, and notices which it has expressly agreed to provide pursuant to this Article and does not hereby undertake to provide any other mti)rmation thaI may be relevant or material to a complete presentation of the Corporation's financial results, condltioll, or prospects or hereby undertake to update any information provided in accordance with this Artic Ie or otherwise, except as expressly provided herein. The Corporation does not make any representatIOn or warranty concerning such information or its usefulness to a decision to inveST III or sell Senes~006 Bonds at any future date cJ UNDER \10 CIRCUMSTANCES SHALL THE CORPORATION BE LIABLE TO THE H( )LDER OR BEN EFlClAL OWNER OF ANY SERIES 2006 BOND OR ANY OTHER PERSON. IN CONTRACTOR TORT, FOR DAMAGES RESULTING IN WHOLE ORIN PART FROM AN)' BREACH BY THE CORPORATION, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PA.RT. UF ANY COVENANT SPECIFIED IN THIS ARTICLE, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACOn NT OF I\NY";UCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. (d) No deiault by the Corporation III observing or performing Its obligations under this Article shall comprise a breach of ur default under this Resolution for purposes of any other provision of this Resoiution. Nothmg in thiS Article is intended or shall act to disclaim waive, or otherwise limit the dutie" olthe Corporation under federal and state securities laws. (cl The proviSIOns of this Article may be amended by the Corporation from time to time to adapt to changed circumstances that arise from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the Corporation, but only if (1) the provisions of this Article, 1S so amended. would have pennitted an underwriter to purchase or sell -19- Serie" 2006 Bonds in the primary offering of the Series 2006 Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule since such offering as well as such changed circumstances and (2) either (A) the holders ofa majority in aggregate principal amount (or any greater amount reqUlred by any other provision of this Resolution that authorizes such an amendment) of the outstanding Series 2006 Bonds consent to such amendment or (B) a person that IS unaffiliated with the Corporation (such as nationally recognized bond counsel) detennines that such amendment \vill no! materIally impair the mterest of the holders and beneficial owners of the Series 2006 Honds. If the Corporation sp amends the provisions of this Article, it shall include with any amended tinanclallllforrnation or operatmg data next provided in accordance with Section 9.1 an explanatIOn, m narrative f(,rrn. of the reason for the amendment and of the impact of any change in the type of financial mf()rrnation or operating data so provided. The Corporation may also amend or repeal the provlsions of this continuing dIsclosure agreement if the SEC amends or repeals the applicable provisioll 01 the Rule or a co urt of final jurisdiction enters judgment that such provisions of the Rule are Inva!id. bu only if and to the extent that the provisions of this sentence would not prevem an underwrIter from lawful!:-- pure hasing or selling Series 2006 Bonds in the primary offering of the Senes 2006 Honds ARTICLE X APPROVAL AND AFFIRMATION OF AGREEMENTS The Board hereby approves issuance of the Series 2006 Bonds. The Board heretofore has approved the Indenture and the Tri-Party Agreement, and does hereby affirm that the Indenture and the Tri-Party Agreement each apply to the Series 2006 Bonds. The Board hereby represents that no amendments or supplements have been made to either the Indenture or the Tri-Party Agreement since the date of delivery oflhe ~eries 2004 Bonds. In connection with the issuance ofthe Series 2006 Bonds. the Board hereby approves the following: the Paying Agent Agreement by and between the CorporatIon and jPMorgan Chase Bank, National Association, in substantially the form attached hereto as Exhibit C: and the Purchase Contract, in substantially the form attached hereto as Exhibit D; and any and all other documents and agreements reasonable and necessary to issue the Bonds (collect !vely, the "Agreements") The Board, by a majority vote of its members, at a meeting duly held fin such purpose, hereby apprllVes the form, terms, and provisions of the Agreements and authorl7e" the execut iOI1 and deliverv of the Agreements ARTICLE XI MISCELLANEOUS Section 11.]. Further Proceedmgs. The President, any Vice President, the Executive Director, the Secretary, the Assistant Secretary and other appropriate officials of the Corporation are hereby authorized and directed to do any and all things necessary and/or convenient to carry out the mtent, purposes and temlS 0 tthis Resolution, including the execution and delivery of the Agreements and such certifIcates, documents or papers deemed necessary and advisable in connection with the delivery of the Series 2006 Bonds -20- SectIOn 11.2. Se\ erabilitv If any Section, paragraph, clause or provision of this Resolution shall tor any reason be he Id to be invalid or unenforceable, the invalidity or unenforceability of such SectIOn. paragraph, clau-;e or provisIOn "hall not affect any of the remaining provisions of this Reso IUllon. SectIon 11.3. QQen Meeting. It IS hereby officially found and determined that the meeting at which this Resolution was adopted was open to the public. and that public notice ofthe time, place and purpose ofsaJd meeting was given. all as required by the Texas Open Meetings Act, Chapter 551, Texas (,ovemment Code )ectlonllA: Parties Interested. '\othing in this Resolution expressed or implied is intended or shall be constmed to confer upon. or to give to, any person or entity, other than the Corporation, the RegIstrar. and the Owners 0 f the Senes 2006 Bonds. any righL remedy or claim under or by reason ,If this Resolution or any covenant, condition or stipulation hereof, and all covenants, stipulations. promIses aM agreements ill this Resolution shall be for the sole and exclusive benefit of the Corporation. the Reglstrar. and the Owners of the Series 2006 Bonds. )ectlOn 115: ~ealer All orders. resolutions and ordinances, or parts thereof, inconsistent herewith are hereby repealed to the extent of such inconsistency. SectIon 1 ] .6: Eftective Date. This Resolution shall become effective immediately upon passage by this Corporation and signature of the President of the Corporation. PASSED,\ND APPROVE D this :iOth day of May. 2006. By Name: Henry Garrett Title: President A Tn S T By:__ _______.__ Name- ..:.,;\rmando C~~_ Title: .5ecreta!y"__ (SEAL) -21- LIST OF EXHIBITS f XlilBIT A E XliIBIT B FXHIBITC FXHIHITD FORM OF BOND CONTINUING DISCLOSURE INFORMATION PA VINCi AGENT AGREEMENT BOND PURCHASE AGREEMENT EXHIBIT A: FORM OF BOND Umted States of America State of Texas Registered Registered NOR fH PADRE ISLAND DEVELOPMENT CORPORA nON r AX INCREMENT CONTRACT REVENUE BOND SERIES 2006 INTERLST RATI' MA TURlTY DATE DELIVERY DATE' CUSIP: REGISTERED O\VNER PRINCIPAL AMOUNT DOLLARS: fhe NORTH PADRE ISLAND DEVELOPMENT CORPORATION (the "Issuer"), a not- for-profitlocaIgovemment corporation created under authority ofChapter431, Subchapter D, Texas Transportation Code (the 'Act") by the City of Corpus Christi, Texas (the "City"), for value received, promIses to pay. but so lei) from certain Pledged Revenues as hereinafter provided, to the Registered Owner identified above or ,'egistered assigns, on the Maturity Date specified above, upon presentation and surrender ofthls Bom! at the designated corporate trust office in Dallas, Texas (the "Designated Trust Otlice") of lPMorgan Chase Bank. National Association, as registrar (the "Registrar"), the princIpal amount identified above, in any coin or currency of the United States of America which on the date of payment of such principal is legal tender for the payment of debts due the United States of Amenca, and to pay. solely from such Pledged Revenues, interest thereon at the rate shown above, calculated on the basis ofa 360-day year of twelve 30-daymonths, from the later ofthe Dated Date (hereinafter defined I ofthe Bonds, or the most recent interest payment date to which interest has been paid or duly provided for. Interest on this Bond is payable by check on March 15 and September 15, beginmng on__ 15,200_, mailed to the Registered Owner as shown on the books of registration kept by the RegIstrar as orthe last Busmess Day of the month next preceding each interest payment date (the "Record Date"), ;)r by such other method, acceptable to the Registrar, requested by and at the risk dnd expense 0 f the Registered Ovvner. If interest on this Bond is not paid on any interest payment date specltled abeve, and contmues unpaid for thirty (30) days thereafter, the Registrar shall establlsn a neVv Record Date for the payment of such interest (a "Special Record Date"). Such SpeCIal Record Date shall be established in accordance with the terms of the hereinafter defmed Resolutiun, nus B01\D IS ONE Of A DULY AUTHORIZED SERIES OF BONDS dated as of - 2006 (the "Dated Date"), aggregating $2,900,000, issued for the purpose of (1) paying Project Costs and (2) paYlllg Costs ofI ssuance, all under and pursuant to the authority of the Act and all other applicable laws, and a resolution adopted by the Issuer on May 30,2006 (the "Resolution"). None 0 r the proceeds of 1 he Bonds shall be used tor the purpose of paying or otherwise providing for educational facilitIes. All defIned terms not herein defmed shall have the meaning attributed thereto III accordance with the terms of the Resolution or the Indenture of Trust dated as of February I, 2003 between lhe Issuer and JPMorgan Chase Bank, National .\ssociation (the successor to IPMorgan Chase Bank), as trustee (the "Indenture of Trust") THIS BOND AND THE SERIES OF WHICH IT IS A PART are limited obligations of the Issuer that are payable from, and are equally and ratably secured. together with the currently outstandmg "Parity Bonds", as de tined m the Indenture of Trust, by a fIrst lien on the "Pledged Revenues", as defined and provided in the Indenture of Trust, which Pledged Revenues are required to be..;el aSide and pledged to the payment of the Bonds and all additional bonds and parity contractual oblIgations issued or entered into on a parity therewith, in the Debt Service Fund maintamed for the payment of all such Bonds, all as more fully described and provided for in the Resolution. fhls Bond and the senes of v,hich it IS a part. together with the interest thereon, are payable ~oleh from ..;ueh Pledged Revenues. 1 HE BONDS mal be redeemed only in prinCipal amounts of $100,000 or any integral multiple of$5,OOO in excess thereol: at the option of the Issuer, on September 15,200_, or on any date thereafter. at the redemption price of par plus accrued interest to the date fixed for redemption, plus a premium as set lorth below. to-wIt fiedemptlon Dates \ dates inclUSive) . ________fremium (%) I fless than all of the Bonds are to be redeemed by the Issuer. the Issuer shall determine the maturity or maturities and the amounts therewith to be redeemed and shall direct the Registrar to call by lot Bonds, or portions thereot within such maturity or maturities and in such principal amounts, for redemption; provided, that during any period in which ownership of the Bonds is determined only by a book entry at a securities depository for the Bonds, if fewer than all of the Bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity and bearing such interest rate shall he selected in accordance with the arrangements between the Issuer and the secunties depository: and provided, .further, that no Bonds shall be redeemed in a manner where the RegIstered Owner thereof shall own Bonds in a denomination of less than S 100,000 fHE BONDS are also subject to mandatory redemption in part by lot on September 15 in the following years and in the f()llowing amounts, at a price equal to the principal amount thereof and accrued and unpaid interest to the date of redemption, without premium: _Vear___ Principal Amount __ Year Principal Amount * Final Maturity fHE BONDS to be redeemed in any year by mandatory sinking fund redemption shall be selected by lot /Tom the Bonds then subject to redemption; provided, that ifany Bond is selected for redemptiOn m part it shall not be redeemed in an amount that would, upon exchange, result in a Bond in a denominatlOn less than $100.000 ['HE PRINCIPAl AMOUNT OF BONDS requITed to be redeemed on each such redemption date pursuant to the foregoing operation of the mandatory sinking fund redemption shall be reduced, at the option 01 the Issuer. by the principal amount of the Bonds which, at least 45 days prior to the mandatory sinkmg fund redemption date. ( I ) shall have been acquired by the Issuer and delivered to the Registrar tc)r cancellal Ion or (2) shall have been acquired and canceled by the Registrar at the direction of the Issuer, 1Jl either case of (I) and (2) at a price not exceeding the par or principal amount of such Bonds, ur (3) shall have been redeemed pursuant to the optional redemption prOVlSlO ns described above and not thereto fore credited against a mandatory sinking fund redemption. During any penod III which ownership of the Bonds is determined by a book entry at a securities depOSitory for the Bonds. iffewer than all of the bonds of the same maturity and bearing the same interest rate are to be redeemed. the particular Bonds of such maturity to be redeemed shall be selected m accordance V> Ith the arrangements between the Issuer and the securities depository; provided, that if any Bond is selected ICH redemption in part it shall not be redeemed in an amount that would result, upon exchange. III a Bond in a denomination less than $100,000. UNLESS WAJVED BY THE OWNER, NOTICE OF ANY REDEMPTION shall be given at least thirty (30) days prior to the date fIxed for redemption by United States mail, first class postage prepaid, addressed to the Registered Owners of each Bond to be redeemed in whole or in part at the address shown on the books of registration kept by the Registrar. When Bonds or portions thereof have been called tor redemption, and due provision has been made to redeem the same, the principal amounts so redeemed shall be payable solely from the funds provided for redemptlon, and interest which would otherwise accrue on the amounts called for redemption shall terminate on the date fixed for redemptIOn i HIS BOND IS TRANSFERABLE only upon presentation and surrender at the Designated Trust Ot1ice of the Registrar, duly endorsed for transfer or accompanied by an assignment duly executed by the Registered Owner or his authorized representative, subject to the terms and conditions ofthe Resolutilm. THIS BOND IS EXCHANGEABLE at the Designated Trust Office of the Registrar for Bonds in principal amounts only in Authorized Denominations, subject to the terms and conditions of the Resolution. '\iEITHER THE ISSUER NOR THE REGISTRAR shall be required to transfer or exchange any Bond during the period beginrung on the fIfteenth calendar day of the month next preceding any interest payment date and ending on the next succeeding interest payment date or to transfer any Bond called for redemptieon during the 30 day period prior to the redemption date. J )URlNG :\NY PfRIOD in whIch ownership of the Bonds is determined onIybyabook entry at a securities depository lor the Bonds. if fewer than all of the Bonds of the same maturity and bearing the same interest rdte are to be redeemed, the particular Bonds of such maturity and bearing such mterest rate shall be...elected in accordance with the arrangements between the Issuer and the securities depOSItory; pro\lded, however. that no Bonds shall be redeemed in a manner where the beneficial owner thereof shall own Bonds in any Authorized Denomination. T HIS BON D shall not be valid or obligatory tor any purpose or be entitled to any benefit under the Resolution unless this Bond is either (i) registered by the Comptroller of Public Accounts of the State of Texas by regIstration certificate attached or affixed hereto or (ii) authenticated by the Registrar by due execution of the authentication certificate endorsed hereon. THE ISSUER HAS RESERVED THE RIGHT to issue additional parity Tax Increment Contract Revenue Bonds, subject to the restrictions contained in the Resolution, which may be equally and ratably payable from, and secured by a fIrst lien on and pledge of, the Pledged Revenues ill the same manner and to the same extent as this Bond and the series of which it is a part. T HE BON OS AND ANY OUTST ANDING TAX INCREMENT CONTRACT REVENUE BONDS ARE A LIMITED OBLIGATION OF THE CORPORATION, PAYABLE, TOGETHER WITH THE CURRENTL" OUTSTANDING PARITY BONDS, SOLELY OUT OF THE TRUST ESTAlE. WHICH IS THL SOLE ASSET OF THE CORPORATION PLEDGED THEREFOR. THE BONDS AND ANY OUTSTANDING T AX INCREMENT CONTRACT REVENUE BONDS ARE < lBLlGATIONS SOLELY OF THF CORPORATION AND DO NOT CONSTITUTE, WITHIN rf-IE MEANING OF ANY STATUTORY OR CONSTITUTIONAL PROVISION, AN INDEBTEDNESS, AN OBLIGATION OR A LOAN OF CREDIT OF THE CITY, THE STATE OF rF XAS, NUECES (OUNTY. TEXAS, DEL MAR COLLEGE, NUECES COUNTY HOSPlT AL DISTRICT, REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTl TEXAS. OR ANY OTHER MUNICIPALITY, COUNTY, OR OTHER MUNICIPAL OR POLITICAL CORPORATION OR SUBDIVISION OF THE STATE OF TEXAS. NEITHER THE CITY, T\JUECES COUNTY. TEXAS, DEL MAR COLLEGE, NUECES COUNTY HOSPITAL DISTRICT NOR REINVESTMENT ZONE NUMBER TWO, CITY OF CORPUS CHRISTI rEXAS ARE OBLIGATED TO MAKE PAYMENTS ON THE BONDS AND ANY OUTSTANDJNC, TAX IN< 'REMENT CONTRACT REVENUE BONDS. SHOULD EACH PARTICIPANT TIMEL Y CONTRIBUTE ITS TAX INCREMENT TO THE TAX INCREMENT FUND. AND THE CITY TRANSFERS ALL OF THE TAX INCREMENTS FROM THE TAX INCREMENT FUND TO THE ISSUER IN ACCORDANCE WITH TH E TERMS OF THE TRl-P ARTY AGREEMENT, AND SUCH TAX INCREMENTS TO BE TRANSFERRED ARE \jOT SUFFICIENT FOR THE PAYMENT OF THE PRINCIPAL OF OR INTEREST ON THE BONDS ON THE DATE WHEN SUCH PRINCIPAL OR INTEREST BECOMES DUE AND P A '{ ABLE, AN EVENT OF DEF AUL T SHALL NOT BE DEEMED TO llAVE (I(('URRED UNDER THE TERMS OF THE INDENTURE OF TRUST. IT' IS HEREBY DECLARED AND REPRESENTED that this Bond has been duly and validly Issued and delivered; that all acts, conditions, and things required or proper to be performed, exisL and be done precedent to or m the issuance and delivery of this Bond have been performed, existed. and been done in accordance with law; that the Bonds do not exceed any statutory limitation; and thaT provisIOn ha~ been made lor the payment of the principal of and interest on this Bond and all 01 rhl' Bonds bv the creation ofthe aforesaid lien on and pledge of the Pledged Revenues, iN WITNFSS WIIEREOF the Issuer has caused this Bond to be executed by the manual or facsimile signatures oftht' President and the Secretary, !\.iORTII P A..DRE ISLAND DEVELOPMENT CORPORATION President. Board of Directors Secretary. Board of Directors (SEA L I FORM OF REGISTRATION CERTIFICATE COMPTROLLER'S REGISTRATION CERTIFICATE: REGISTER NO. I hereby certifY that this Bond ha~ been examined, certified as to validity, and approved by the Attorney General 0 fthe State ofT exas. and that this Bond has been registered by the Comptroller of Public Accounts of the-;tate of r exas. WITNESS MY SIGNATURE AND SEAL this Comptroller of Public Accounts of the State of Texas (SEAl. ) EQ&M OF REGISTRAR'S AUTHENTICATION CERTIFICATE Al THENTICATION CERTIFICATE It IS hereby certitled that this Bond has been delivered pursuant to the Resolution described in the text of thIs Bond; and that this Bond is one of a series of Bonds approved by the Attorney General of the State ofT t'xas and regIstered by the Comptroller of Public Accounts of the State of Texa"- IPMORGAN CHASE BANK. NATIONAL ASSOCIATION, dS Registrar Bv Authorized Signature Date of Authentication: FORM OF ASSIGNMENT ASSIGNMENT r or value received, the undersigned hereby sells. assigns, and transfers unto (Please print or type name, address. and zip code of Transferee) (Please insert Social Security or Taxpayer Identification Number of Transferee) the WIthin Bond and all rights thereunder. and hereby irrevocably constitutes and appoints attorney to transfer said Bond on the b()oks kept for registration thereof, with full power of substitutIOn in the premise" DATED: Signature Guaranteed' Registered Owner NOTICE Signature must be guaranteed by an mstitution which is a partiCIpant in the SeCUrIties Transfer Agent Medallion Program ("ST AMP") or similar program. NonCE: The signature above must correspond to the name of the Registered Owner as shown on the face of this Bond in every particular, without any alteration, enlargement or change whatsoever Exhibit B to Resolution DESCRIPTION OF ANNUAL FINANCIAL INFORMATION rhe t()IlO\\ mg mtormation is referred to in Section 9.] of this Resolution. Annual Financial Statements and Operating Data rhe tinanclal infOlmation and operating data with respect to the Corporation to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Limited Offering Memorandum referred to) below: i The mtonnatlon of the general type included in Tables 1 through 3 ofthe Limited Offering Memorandum. ) "Financial Statements of the North Padre Island Development Corporation". Accounting Principles rhe accounting pnnciples retelTed to in such Section are the accounting principles described in thl' notes to the t1nancial statements refelTed to in paragraph 2 above. PAYING AGENT AGREEMENT THIS P A YINCi A( lENT AGREEMENT entered into as ofJune 1,2006 (this "Agreement"), by and hetween the Nortb Padre Island Development Corporation (the "Issuer"), and lPMorgan Chase Bank, National A.ssociation, a national banking association duly organized and existing under the laws urtbe United Stales of America (the "Bank") RECITALS WHEREAS. the Issuer has duly authorized and provided for the issuance of its Tax Increment Contract Revenue Bonds. Series 2006, III the aggregate principal amount of $2,900,000 (the "Secunties"). such SecuritIes to he issued in fully registered form only as to the payment of principal and interest thereon: and WHEREAS. the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the princIpal of, premium, ifany, and interest on said Securities and with respect to the registrat ion, transfer and exchange thereofby the registered owners thereof; and \\ HEREt\S. the Bank has agreed to serve in such capacities for and on behalf of the Issuer and ha-, till I power and authority to perfon11 and serve as Paying Agent/Registrar for the Securities; '\lOW. THEREFORE, it is mutuallv agreed as follows: .\RTlCLE ON E APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Appointment. rhe Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities. As Paymg Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and mterest on the Securities as the same become due and payable to the registered owners thereof. all in accordance with this Agreement and the "Resolution" (hereinafter detined) rhe Issuer hereby appoints the Bank as Registrar with respect to the Securities. As Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and m the Resolution. rhe Bank hereby accepts its appomtment, and agrees to serve as the Paying Agent and Registrar j()r the SecuritIes. Section 1.02. Compensation. \s compensation tor the Bank'" services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts as may be agreed upon in writing. The initial fees and amounts payable for the Bank's services as Paymg Agent/Registrar are as set forth in Exhibit A attached heret", In additJon, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provlsions hereof(mcluding the reasonable compensation and the expenses and disbursements of its agents and counsel). -\RTICLE TWO DEFINITIONS Section 2.01. Definitions. lor all purposes l' f this Agreement. except as otherwise expressly provided or unless the context otherwlse requires: ,\cceleration Date" on any Security means the date on and after which the principal or any or all mstallments qf Illterest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank ()ftice" means the prinCIpal corporate trust office of the Bank as indicated on the signature page hereol The Bank will notifY the Issuer in writing of any change in location of the Bank Office 'Code" means the Internal Revenue Code of 1986, as amended. 'Fiscal Year" means the twelve ( 12) month period commencing on Augustl ofa calendar year and ending July 3 I of the next succeeding calendar year. or such other consecutive twelve (12) month period as determined bv the Issuer "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register "Issuer Request" and "Issuer Order" means a wntten request or order signed in the name of the Issuer by the Executiw Director of the Issuer, the President or the Vice President of the Issuer, anyone ()r more of said officials, or any other person designated by the Issuer, and delivered to the Bank "Legal Holiday' means a day on which the Bank is required or authorized to be closed. ') ~"-~ <, Person" means am individual, corporation, partnership, joint venture, association, joint stock compan)- trust, unmcorpc,rated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any partIcular Security means every previous Security evidencing all or a portion of the same obligatlon as that evidenced by such particular Security (and, for the purpose~ of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Secunty has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution ). "Proceedings" 'neans the Resolution and the Trust Indenture "Redemption Date' when used with respect to any Bond to be redeemed means the date fixed for such redemption pursuant to the terms of the Resolution. "ResolutlOn" means the resolution. order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued. certified by the Secretary or any other officer of the Issuer and delivered to the Bank. 'Responsible Officer" when used with respect to the Bank means the officer(s) in the corporate trust serVlCes department (}fthe Rank having direct responsibility for administration of the Seeurit le~ 'Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfer of the Securities. 'Stated Maturity" means the date specified in the Resolution the principal of a Security is scheduled to be due and pavable 'Trust Indenture" means the Indenture of Trust by and between the Issuer and IPMorgan Chase Bank. National Association (as successor to IPMorgan Chase Bank), as trustee, dated as of Februarv I. 2003 Section 2.02. Other Definitions. --.--. . rhe tenns "Bank." Issuer." and "Securities (Security)" have the meanings assigned to them m the recital paragraphs of r his Agreemem rhe tenn "Paying Agent/Reglstrar" refers to the Bank in the perfonnance ofthe duties and functions () f this Agreement -3- ARTICLE THREE PAYING AGENT Section 3.01. Duties of Paying Agent. \s Paymg i\gent. the Bank shall, provided adequate collected funds have been provided to it for 'iuch purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Secunt) at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Secunty to the Bank at the Bank Cltlice. \s Paymg Agent, the Bank shalL provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer. pay on behalf of the Issuer the interest on each Secunty when due, by computing the amount of interest to be paid each Holder and preparing and sending checks by United States maiL first class postage prepaid, on each payment date, to the Holders of the Securities (or their Predecessor Securities) on the respective Record Date, to the address appearing on the Security Register or by such other method, acceptable to the Bank, requeskd in writing bv the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. rhe Issuer hereby Instructs the Bank to pay the principal of and interest on the Securities on the dates specified m the Resolution. ARTICLE FOUR REGISTRAR Section 4.01. Security Register - Transfers and Exchanges. rhe Bank agrees ! 0 keep and mamtain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulatlon~ as the Issuer and the Bank may prescribe. >\ll transfers, exchanges and replacement of Securities ~hall be noted 111 the Security Register. L very Secunty surrendered tor transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or d member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. ] he Bank may request any supporting documentation it feels necessary to effect a re- registratIon, transfer or exchange 0 f the Securities. -4- 10 the extent posslble and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities. the exchange or transfer by the Holders thereof will be completed and new Securil1es delivered tll the Holder or the assignee of the Holder in not more than three (3) busmess days after the receipt of the Securities to be cancelled in an exchange or transfer and the written Instrument oftransler or request for exchange duly executed by the Holder, or his duly authorized agent. III form and mannel satisfactory to the Paying Agent/Registrar. The Bank may utilize the services of an agent, to act on behalf of the Bank, in the perfonnance of the services of registrar under the terms of this Agreement Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use, and reasonable care will be exercised by the Bank in maintaining such Secufltles in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other political subdiviSIOns or corporations for which it serves as registrar, or that is maintamed for its own ~ecIJrities Section 4.03. form of Security Reeister. The Bank. as Registrar. will mamtain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect trom tllne to time. The Bank shall not be obligated to maintain such Security Register III any fom, other than those which the Bank has currently available and currently utilizes at the t nne The Security Register may be mamtained in written form or in any other form capable ofbeing converted into written form within a reasonable time Section 4.04. List of Security Holders. The Bank will provlde the Issuer at any time requested by the Issuer, upon payment of the required tee, a copy of the information contained in the Security Register. The Issuer may also InSpect the information contained in the Security Register at any time the Bank is customarily open for busmess. provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the infimnation mto written fimn The Bank wi II no t re iease or dlSclo se the contents 0 f the Security Register to any person other than to. or at the written request o( an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of I he contents of the Security Register, the Bank will notifY the Issuer so that the rssuer may contest the court order or such release or disclosure of the contents of the Security Register -"'- Section 4.05. Return of Cancelled Certificates. With respect 10 all SecuritIes paid or redeemed in accordance with the Resolution, and such Securitles shall be cancelled and thereafter treated in accordance with the Bank's document retention polille~ Section 4.06. Mutilated. Destroyed. Lost or Stolen Securities. rhe I ssuer hereby mstructs the Bank, subject to the applicable provisions ofthe Proceedings, to dehver and issue Secunties in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securi- ties as long as the same does not result In an over-issuance. I n case any Secunt y shall be mutilated, or destroyed, lost or sto len, the Bank, in its discretion, may execute and delher a replacement Security oflike form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security. OJ in Iteu of and in substitution flH such destroyed lost or stolen Security, only after i i) the filing hy the Holder thereof with the Bank of eVldence satisfactory to the Bank of the destruction. loss or theft Df such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnitication in an amount satisfactory to save and hold the Issuer and ,he Bank hannless. All expenses and charges associated with such indemnity and with the preparation. execution and delivery o1'a replacement Security shall he borne by the Holder of the Secunt\ mutilated. or destroyed. lost or stolen. Section 4.07. Transaction Information to Issuer. rhe Bank wili. \\ lthin a reasonable time after receipt of wntten request from the Issuer, furnish the Issuer 1l1ftmnation as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has de livered in exchange for or In lieu 0 f mutilated. destroyed, lost. or stolen Securities pursuant to SectIOn 406 .\RTICLE FIVE THE BANK Section 5.01. Duties of Bank. [he Bank undertakes to perfonn the duties set forth herein and agrees to use reasonable care in the performance thcreo t Section 5.02. Reliance on Documents. Etc. (d) rhe Bank may cone lusively rely, as to the truth of the statements and correctness of the opmlons expressed therein, on certificates or opinions furnished to the Bank. t b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. -0- kl No provisIOns of thIs Agreement shall require the Bank to expend or risk its own funds or othennse in~ur any financial liability f(Jr performance of any of its duties hereunder, or in the exerCIse of any of its rights or powers, ifit shall have reasonable grounds for believing that repayment of such fimds or adequate mdemnitv satisfactory to it against such risks or liability is not assured to 11. (di The Bank ma~ rely and shall be protected in acting or refraining from acting upon any resolutIon. certificate. statement. instrument, opinion. report, notice, request, direction, consent, order. bond, note. security or other paper or document believed by it to be genuine and to have been signed or presented by the proper part) or parties. Without limiting the generality of the foregoing statement. the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt 0 r Secunties contaming an endorsement or instruction of transfer or power of transfer which appears on its face to be ~igned by the Holder or an agent of the Holder. The Bank shall not be bound to make any Ulvestigation into the facts or matters stated in a resolution, certificate, statement, Instrument. opimon. report. notice, request, direction, consent, order. bond, note, security, or other paper Dr document supplied by Issuer. (e) The Bank may consult WIth counsel, and the written advice ofsuch counselor any opinion of counsel shall be hIll and complete authorization and protection with respect to any action taken, suffered, ,)1' omitted by It hereunder in good faith and in reliance thereon. n The Bank may c'xercise any 0 f the powers hereunder and perform any duties hereunder either directly 01 by >)1 rhn!ugh agents or attorneys Mthe Bank. Section 5.03. Recitals of Issuer The recitals ~ontained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer and the Bank assumes no responsibility for their correctness. fhe Bank shall III nIl event be liable 10 the Issuer. any Holder or Holders of any Security, or any other Person fa! anvalllount due on any Security from its own funds. Section 5.04. ~a) Hold Securities. The Bank, in Its commercial banking or any other capacity. may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have ifit were not the Paymg Agent/Registrar or any other agent. Section 5.05. Moneys Held by Bank. Money held by the Bank hereunder need not be segregated from any other funds provided appropriate trust accounts are maintained in the name and for the benefit ofthe Issuer. fhe Bank shall be under no Iiabilitv for interest on any money received by it hereunder. Subject to the UnclaImed Property Law of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on Security and remaining unclaimed for two and pne-halfyears after the final maturity of the Security has become due and -7- payable will be paid by the Bank to the Issuer if the Issuer so elects in writing, and the Holder of such Secunt\ shall hereafter IOl)k only to the Issuer for payment thereof, and all liability of the Bank with respect 10 such moneys shall thereupon cease. If the Issuer does not elect, the Bank is directed to repon and dispose of the tunds in compliance with Title Six of the Texas Property Code, as amended. Section 5.06. Indemnification [0 the extent permitted bv law the Issuer agrees to indemnifY the Bank for, and hold it harmles-. against, any los~. liability, or expense incurred without negligence or bad faith on its part, arising uut of or in cormection with its acceptance or administration of its duties hereunder, including the cost and expense agamst any claim or liability in connection with the exercise or performance of any o,'its powers o[ duties under thiS Agreement, "Iection 5.07. Interpleader fhe Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand. or controversy, lver its person as well as funds on deposit, in either a Federal or State Distnct Court located in 1 he State of Texas, and agree that service of process by certified or regis- tered mail. return receIpt requested. to the address referred to in Section 6.03 of this Agreement shall canst !tote adequate servic e. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader ill any court of competent jurisdiction within the State of Texas to determine the nghts of any Person claiming any interest herem Section 5.08. Depositon' Trust Company Services. I t IS hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted f(lr The Depository Trust Company ("OTC") services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with OTe's Operational Arrangements, which establish requirements for securities to be eligible llx such type depository trust services, including, but not limited to, requirements for the timelmess of payments and funds availability, transfer turnaround time, and notification of redemptions and calls \RTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both ofthe parties heretu Section 6.02. Assiflnment. This Agreement may not be assigned by either party without the prior written consent of the other -x- Section 6.03. Notices. Any request. demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issller 1)r the Bank, respectively, at the addresses shown on the signature page ofthis Agreement. All sllch notices shall he effective only upon receipt. Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof Section 6.05. Successors and Assi2ns. '\ II covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severability In case any provision herein shall be mvalid, illegaL or unenforceable, the validity, legality, and enforceability of the remainmg provlsions shall not in any way be affected or impaired thereby. Section 6.07. Benefits of A2reement. \Jothmg herem, express or implied. shall give to any Person, other than the parties hereto and their successors hereunder. any benefit or any legal or equitable right. remedy, or claim hereunder. Section 6.08. Entire Agreement ThiS Agreement and the Proceedings constitute the entire agreement between the parties hereto relative to the Bank acting as Paymg Agent/Registrar and if any conflict exists between his Agreement and the Proceedings. the Proceedings shall govern. Section 6.09. Counterparts. rhlS Agreement may be executed III any number of counterparts, each of which shall be deemed an original and all oCwhich shall constitute one and the same Agreement. Section 6.10. Termination. ThiS Agreement will terminate (i) on the date of final payment of the principal of and mterest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termir1ation of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appomted by the Issuer and such appointment accepled and (b) notice has been given to the Holders of the Securities of the -9- appomtment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effecti\ e date of an early termli1ation of this Agreement shall not occur at any time which \\ ould disrupt, delay or otherwise adversely affect the payment of the Securities. Upon an early tennination of thIs Agreement, the Bank agrees to promptly transfer and deliver the SecurIty Register lor a copy thereof). together with other pertinent books and records relating to the Securities. j" the slIccessor Paymg Agent/Registrar designated and appointed by the Issuer. Ihe provisllms of Section .02 and Article Five of this Agreement shall survive and remain in full fi)rce and effect following the termination of this Agreement. Section 6.11. Reportin2 Requirements. r 0 the extent reqUITed by the Code or the Treasury Regulations, the Bank shall report the amount of interest paid or the amount treated as interest accrued on the Securities which is required to be reported by the Holders on their returns of federal income tax. or assure that such a report is made. to the Holders and the Internal Revenue Service Section 6.12. Governing Law This Agreement shall be construed in accordance with and governed by the laws of the State of Texas IEXECUTION PAGE FOLLOWS) -10- IN WITNESS WHEREOF. the partJes hereto have executed this Agreement as ofthedayand year first above written JP1V10RGAN CHASE BANK NATIONAL ASSOCIATION By 1 itle Address: 600 Travis Street, Suite 1150 Houston, Texas 77002 Attention: Worldwide Securities Services [BANK SEAL] NORTH PADRE ISLAND DEVELOPMENT CORPORA TION Corpus Christl. Texas By Title Address: Executive Director 1201 Leopard Corpus Christi. Texas 78401 Attest Secretary [ISSUER SEAL] -11- SCHEDULE A Paymg Agent/Registrar Fee Schedule PA YIN( r AGENT'RfGISTRAR SERVICES Fees 10r paymg agent ....en Ices are Incorporated as part of the fees charged for trustee services. NORTH P-\DRE ISLAND DEVELOPMENT CORPORATION (A not-far-profit local government corporation acting on behalf of the City of Corpus Christi, Texas) rA X I NCREMENT CONTRACT REVENUE BONDS SERIES 2006 BOND PL'RCHASE AGREEMENT June 21, 2006 Board of DIrectors North Padre Island Development Corporation 1201 Leopard Corpus Christi, Texas 7R40 j Ladies and Gentlemen: The undersigned, M. E. Allison & Co., Inc. (the "Undernrite?), offers to enter into the following agreement with North Padre Island Development Corporation (the''lssuef) which, upon the Issuers written acceptance of this offer, as evidenced by the execution of this Bond Purchase .-\greement by the undersigned, as the duly authorized representative of the Issuer (the "Issuer Representative). will be binding upon the Issuer and upon the Underwriter. Capitalized terms used herem and not otherwise defined in this Bond Purchase Agreement shall have the respective meanings gIven to such tem1S in the Limited Offering Memorandum (as defined herein). 1. Background and Purpose The Issuer is issuing its Tax Increment Contract Revenue Bonds, Series 2006, in the aggregate principal amount of $2,900,000 (the ''Bonds), pursuant to a resolutIOn adopted May 30, 2006 (the "Bond Resolution) of the board of directors (the "G01 erning Bodl') (If the Issuer for the purpose of providing funds to pay Project Costs. Bond proceeds will also be used to pay issuance costs associated with the Bonds. 2. Purchase and Sale of the Bonds. Subject to the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Underwriter agrees to purchase from the Issuer, and the Issuer agrees to sell and deliver to the Underwriter at Closing (as hereinafter detined), all, but not less than all, of the Bonds. Inasmuch as this purchase and sale represents a negotiated transaction, the Issuer understands, and hereby confirms, that the lInderwriter is not acting as a fiduciary of the Issuer, but rather is acting solely in its individual capacity as an If nderwriter for its own account. The purchase price for the Bonds shall be 95.29103% of the par amount of the Bonds (or 52,763,5001 j ~ '7873-" The Bonds shall be issued pursuant to and in accordance with the provisions of the Bond ResolutIOn and an Indenture of Trust. dated as of February 1, 2003 (the "Indenture), by and hetween the Issuer and lPMorgan Chase Bank, National Association, as successor to JPMorgan Chase Bank. as trustee I the'Trustee). J. Limited Offering. The Underwriter agrees to make a limited offering of all of the Bonds at prices not to exceed the offering price set forth on Exhibit A and may subsequently change such offering pnces (or yields) wIthout any requirement of prior notice to the Issuer. The t nderwntcr may offer dnd sell Bonds to certain dealers (including dealers depositing Bonds into mvestment trusts) and others at pnces lower than the offering price stated on Exhibit A (or at vields higher than such mitial pubhc offering yields). The Preliminary Limited Offering Memorandum descnbes various risk factors that exist in connection with the sale of the Bonds, and consistent wIth Its dutIes under federal securities law the Underwriter has taken those risk factors into account In makmg a limited offering of the Bonds. 4. Offering Documents. (a) Preliminary Limited Offenng Memorandum. The Issuer previously has delivered copies of the Preliminary Limited Offering Memorandum to the Underwriter for its use in determining interest in the Bonds. The Issuer ratifies and approves the Preliminary Limited Offering Memorandum and its use by the Underwriter for that purpose before the Preliminary Limited Om~ring Memorandum described below becomes available. The Issuer confirms that it has not prepared any oflicial statement tor dissemination to potential customers prior to the availability of such Prelimmary Limited Offering Memorandum, except the Preliminary Limited Offering Memorandum. The Preliminary Limited Offering Memorandum was deemed final by the Issuer as of its date for purposes of Rule 15c2-l2 of the United States Securities and Exchange CommiSSIOn (the "Rule '). except possibly for the omission of items specified by paragraph (b)(l) of the Rule (b) Deliverv of Preliminary Limited Offering Memorandum. Not more than seven business days after the time the Issuer accepts this offer, the Issuer will deliver copies of a final Preliminary Limited Offenng Memorandum related to the Bonds. approved by the Governing Body or one or more duly authorized officers thereot: to the Underwriter in sufficient number to permit the Underwnter to comply with the requirements of the Rule. Such Preliminary Limited Offering Memorandum wdl be dated a date on or near its delivery, when delivered to the l.nderwnter will be complete within the meaning of the Rule, and will be substantially in the form of the most recent markup of the Preliminary Limited Offering Memorandum provided to the Underwriter before the execution hereof. Such Preliminary Limited Offering Memorandum, mcluding the cover page thereto. all exhibits, appendices, maps, charts, pictures, diagrams, reports, and statements mcluded or incorporated therein or attached thereto, and all amendments ,md supplements theretn that may be authorized for use with respect to the Bonds, is herein reterred to as the"Pre/iminarv Limited Offering Memorandun{ (c) Amendments and Supplements to Preliminary Limited Offering Memorandum. From the date of this Bond Purchase Agreement to the 30th day (or such other day, not later than the 90th day, that may be specified by the Underwriter at the Closing referred to herein) following the date of such Closing. the fssuer will notify the Underwriter whenever, in the ~ ~'7 873, 3 .., "" ludgment of the Issuer, the Preliminary Limited Offering Memorandum should be amended or supplemented in order for the Official Statement not to contain any untrue statement of a material tact and nOl to omit to state any material fact necessary to make the statements in the Prelimimlr\ Limited Otfenng Memorandum, in light of the circumstances in which they are made, nut misleading. Thl.' Issuer will amend or supplement the Preliminary Limited Offering Memorandum at the expense of the Issuer and in a manner satisfactory to the Underwriter, when in the reasonable IUd~'11lent (If the Issuer or the Underwriter such amendment or supplementation j s required (eI) Use of Prehminary LImIted Offering Memorandum. The Underwriter, all members of any selling group which may be formed in connection with the distribution of the Bonds, and all dealers tc' whom any of the Bonds may be sold by the Underwriter or by members If any ..,elling ~lTOUp mav use the Preliminary Limited Offering Memorandum and the if1fOrmatlOn contamed therem, including any amendments or supplements thereto, in connection with the \)ffering and "ale otthe Bonds ( e i ContinulIllU)isclosure. rhe Issuer will agree in the Bond Resolution to provide .J[ cause to be provided certain periodic information and notices of material events in accordance ,vlth the Rule. as descnbed in the Preliminary Limited Offering Memorandum under 'mNTINUING DISCLOSl iRE OF fNFORMA TION~' The Underwriter acknowledges receipt of a draft of the Bond Resolution in which there is contained the agreement described under such heading, and the Issuer .lcknowledges that except as disclosed in the Limited Offering Memorandum It has substantially complied with its prior contractual agreements to provide continuing disclosure. The Underwriter's obligation to accept and pay for the Bonds is conditioned upon delivery to the Underwriter or its agent of a certified copy of the Bond Resolution containing the proviSIOns described under such heading. (Ii ~ubst'!!1tiv~Requirements for Preliminary Limited Offering Memorandum. To the best kn~)wledge and belief of the Issuer, the Preliminary Limited Offering Memorandum contains mtormation. including financial information or operating data, concerning every entity, enterprise. fund. account or person that is material to an evaluation ofthe offering of the Bonds. 5. Representations, Warranties, and Covenants of the Issuer. The Issuer hereby represents and warrants to and covenants with the Underwriter that: (a) Due Organization. The Issuer is a not-for-profit local government corporation acting on behalf of the City of Corpus Christi, Texas (the "CitY), duly created, organized, and existing under the ConstltutlOn and laws of the State of Texas, and is authorized and empowered by the proVIsions of the Texas Constitution. the laws of the State of Texas, and the ordinances of the City to Issue the Bond:-- for the purposes of providing funds for the purposes specified in Section ] hereof (b) Due Authorization. By all necessary official action of the Issuer prior to or concurrently with the acceptance hereof, the Issuer has duly authorized all necessary action to be taken by it for (i) the adoption ofthe Bond Resolution, the Indenture and the issuance and sale of the Bonds. (ii) the approval, execution and delivery of, and the performance by the Issuer of the ohligations on its part. contained in the Bonds. the Bond Resolution, the Indenture, this Bond 4,-'7R733 , , , Purchase Agreement, and the Tri-Party Agreement, (iii) the consummation by it of all other transactIOns contemplated by the LimIted Offering Memorandum, the Bond Resolution, the r ndenture. this Bond Purchase Agreement and the Tri-Party Agreement, and any and all such other agreements and documents as may be required to be executed, delivered and/or received by the Issuer In order to carry out. gIve eHect to, and consummate the transactions contemplated herein and In the Limited Offering Memorandum. 1-:) Legal, ValId, and Binding Obligations. The Bond Resolution has been duly adopted b: the Governing Body of the Issuer, and the Bonds, when issued, delivered and paid lor, in accordance WIth the Bond Resolution and this Bond Purchase Agreement, will constitute legal, valid and binding lImited obligation of the Issuer secured solely by a valid lien on the Pledged Revenues and entItled to the benefits of the Bond Resolution; and when delivered to and paid for bv the Underwnter at the ClOSing the Bonds will have been duly approved by the \ttome) Cieneral ot Texas, registered by the Comptroller of Public Accounts of the State of iexas, and duly executed and delivered by the Issuer and will constitute legal, valid, and binding hmited obligations of the Issuer enforceable against the Issuer in accordance with their terms, "ubject to bankruptcy laws and simIlar laws affecting the rights of creditors of political "ubdivislOns generally. and may be limIted by general principles of equity which permit the exercise of Judicial dIscretIOn. (d) fn-Part\ Agreement and Indenture. The Tri-Party Agreement and the Indenture -:onstitute the legal, valid, and binding obligations of the Issuer enforceable against the Issuer in accordance with their respective terms. subject to bankruptcy laws and similar laws affecting the nghts of creditors of political subdi visions generally, and may be limited by general principles of equity whieh permit the exercise of judicial discretion. Neither the Tri-Party nor the Indenture have been amended as (lfthe date of this Bond Purchase Agreement. (e) Default. T (j the best knowledge of the Issuer. it is not in any material respect in hreach uf or default under any apphcable constitutional provision, law or administrative regulation of the City, the State or the United States or any applicable judgment or decree or any loan agreement, Indenture. bond. note, resolution, agreement or other instrument to which the Issuer is a party or to which the Issuer IS otherwise subject, and no event has occurred and is umtinuing which constItutes or with the passage of time or the giving of notice, or both, would constitute a default or event of default by the Issuer under any such instrument. (1) Necessary Approvals. Except for approval of the Bonds by the Attorney General of Texas and registration Ilf the Bonds by the Comptroller of Public Accounts of the State of Texas, all appro\als. permIts. consents. licenses and authorizations of, registrations or filings with, and notices to any government authority which are required for the Issuers's due execution, delivery. and performance of its obligations under the Bonds, the Bond Resolution, the Indenture, ,md this Bond Purchase Agreement have been made or obtained. (g) No Litigation. No action, suit, proceeding, inquiry. or investigation, at law or in equity, before or by an) court or public board of body in which the Issuer has been served or of which it has otherwise received official notice is pending against or to the knowledge of the Issuer, is threatened against the Issuer (nor to the knowledge of the Issuer is there any basis therefor) wherein an unfavorable decision. ruling, or finding would impose a material financial ..';778731.3 4 lIability ~lD the Issuer or in any way adversely affect (i) the creation, organization, existence, or material authority of the Issuer or the title of its officers to their respective offices, (ii) the collection of Contract T ax increments or other revenues of the Issuer to any material extent, (iii) the transactions contemplated by this Bond Purchase Agreement or the Limited Offering \1emorandum, (iv) the validity or ent()fceability of the Bonds, the Bond Resolution, the Indenture, this Bond Purchase Agreement or the Tri-Party Agreement, or (v) the excludability of the interest on the Bond" fT. 1m the gross Income of the owners thereof (h) Accuracy at Official Statement. The Bonds, the Tri-Party Agreement and the Indenture conform to the descriptions thereof contained in the Limited Offering Memorandum and the proceeds of the sale of the Bonds will be applied generally as described in the Limited Offering Memorandum under the caption"SOURCES AND USES OF BOND PROCEEDS:' The mforrnation contained III the Limited Om~ring Memorandum with respect to the Bonds, the Issuer, the Zone. the Proje...:t, development within the Zone, land use within the Zone, and the Issuer's other affairs lS true and correct m all material respects and, as of the date of the Limited ()ffering Memorandum. the Limited Om~ring Memorandum, with respect to such information, dId not, and as of the date of the Closing will not, contain any untrue statement of a material fact ,II' omit to state a matenal fact reqUIred to be stated therein or necessary to make the statements made therem with respect t\) the Bonds. the Issuer. the Zone, the Project, development within the lone, land use WIthIn the Zone. and the Issuer's affairs, in the light of the circumstances under ,'>hieh they were made. not misleading. With respect to information in the Limited Offering \1emorandum, other than the information relating to the Bonds, the Issuer and the Issuer's affairs, the Issuer has no reason to believe that such information contains any untrue statement of a material tact or omits te state a material fact required to be stated therein or necessary to make the statements made thcrelfl. in light of the circumstances under which they were made, not misleading (n No Material Adverse Change. Prior to the Closing, there will be no adverse \:hange of a matenal nature in the financIal position, results of operations or condition, financial ,11' othern'lse, of the Issuer. The Issuer is not a party to any litigation or other proceeding pending ,lr. to its knowledge, threatened which, if decided adversely to the Issuer, would have a materially adverse effect on the financial condition of the Issuer. Between the date of this Bond Purchase Agreement and the Closing, the Issuer will not, without the prior written consent of the I Jnderwnter. issue anv hond or note or incur any other obligation t()r borrowed money which is IT may be payable from. or does or may constitute a charge on, the Pledged Revenues, and from the respective dates as (.f which intonnatlOn is given in the Limited Offering Memorandum to the Closing the Issuer has not incurred and will not incur any material liabilities. G I Officers' Certificates Any certificate signed by any official of the Issuer authorized to do so in connection with the transactions contemplated by this Bond Purchase >\greement shall be deemed a representation and warranty by the Issuer to the Underwriter as to the statements made therein (k) Issuer Representative The Issuer Representative is authorized to act on behalf of the Issuer. for the purpose of selling the Bonds to the Underwriter, fixing the terms of the Bonds as set forth in Exhibit t\ and taking the other actions provided for herein and in the Bond Resolution. and such actions by the Issuer Representative shall be deemed to be actions by the 4~'78733J 5 issuer. The PresIdent and any Vice President of the Governing Body or the Executive Director ,,1' the Issuer each has been duly authorized to act on behalf of the Issuer, as the Issuer RepresentatIve. for the purpose of taking the actions provided for herein. B~ delivenng an executed copy of the Limited Oftering Memorandum to the Underwriter, the Issuer shall be deemed to have reaffirmed, with respect to such Limited Offering Memorandum. the representations, warranties and covenants set forth above. The Issuer Cilvenants that bet\\een the date hereof and the Closing, it will take no actions that will ,;ause the representatJOns and warranties made in this Section to be untrue as of the Closing. 6. Closing. (a) The Issuer will deliver the Bonds to the Underwriter, and the Underwriter will pay J()r the Bonds. at 9:00 a.m. central time. on July 26, 2006 (the "Closing Date), or at such other lIme and date as shall have been mutually agreed upon by the Issuer and the Underwriter. Such actions are herein reterred to as the "Closing:' The Closing will occur at the offices of McCall, Parkhurst & Horton L.L.P.. Dallas, Texas, or at such other location as may be agreed to by both the Issuer and the Lnderwriter. and the Bonds will be delivered through The Depository Trust (ompanv (b) At the Closmg, the Issuer will, subject to the terms and conditions hereof, deliver I. me duly executed imtial Bond tor each maturity of the Bonds (the "Initial Bonds) in either typed pr printed tor, payable to (ede & Co., and bearing a registration certificate manually signed by an authonzed representative of the Comptroller of Public Accounts of the State of Texas, together with the other documents hereinafter described. The Issuer will cause the Paying Agent/RegIstrar to exchange the Initial Bonds at Closing for definitive Bonds, duly authenticated hy the Paymg AgenVRegistrar and bearing CUSIP numbers. immediately upon payment for and surrender tor exchange of such Initial Bonds by the Underwriter. through the book-entry only system of the Deposltorv Trust Compan~ (\..) The Underwriter will pay the purchase price for the Bonds by wire transfer of llnmediately available funds to the Paymg Agent/Registrar to the account of the Issuer. (J) Time IS of the essence in the performance of this Bond Purchase Agreement. Tender of the Initial Bonds and definitive Bonds at the time and place specified in this Bond Purchase Agreement is a condition to the Underwriters obligations hereunder. If the Issuer is unable to perform its obligations hereunder at such time and place, the Underwriter may, at its option, either extend the time or change the place of performance or terminate its obligations hereunder. 7 Closing Condition~~ The Undervvriter has entered into this Bond Purchase i\greement In reliance upon the representations, warranties and agreements of the Issuer contained herein, and In reliance upon the representations, warranties and agreements to be contained 10 the documents and Instruments to be delivered at the Closing and upon the performance by the Issuer (1f its obligations hereunder, both as of the date hereof and as of the date of the Closing. Accordingly, the Underwriters obligations under this Bond Purchase '\greement to purchase. to accept delivery of and to pay for the Bonds shall be conditioned upon ,-,7787313 6 the performance by the Issuer of its obligations to be performed hereunder and under such documents and instruments at or prior to the Closing, and shall also be subject to the following additional conditilms including the deli\ery by the Issuer of such documents as are enumerated herein, ]lJ tC)ITn and suhstance reasonabl y satisfactory to the Underwriter and counsel to the L nderwnter (a I The representations and \varranties of the Issuer contained herein shall be true, :ompIete and correct II1 all material respects on the date hereof and on and as of the date of the losing, as Ifmade on the ciate oUhe Closmg. (b I The Issuer shall have performed and complied with all agreements and conditions required by this Bond Purchase Agreement to be performed or complied with by it prior to or at the Closmg (c) At the time of the Closing, (i) the Bond Resolution, the Indenture, the Bonds, the rri-Party Agreement and the Interlocal Agreements shall be in full force and effect and shall not have been amended, modified or supplemented, and the Limited Offering Memorandum shall not have been supplemented or amended, except in any such case as may have been agreed to by the !'nderwnter, (ill the net pn lceeds of the sale of the Bonds and any funds to be provided by the Issuer shall be deposited and applied as described m the Limited Offering Memorandum and in the Bond Resolution and (ill) all actions of the Issuer required to be taken by the Issuer shall be performed in order f()J' Bond Counsel to deliver its opinions referred to hereafter. (d) At or pnor t<> the Closing, the Bond Resolution shall have been duly executed and delivered by the Issuer and the Issuer shall have duly executed and delivered and the Paying A.gent/Registrar shall have duly authenticated the definitive Bonds. (e \ At the time ofthe Closing. the Issuer shall deliver the Bonds to the Underwriter. (0 At the tllne of the Closmg, there shall not have occurred any change or any development involving a prospecti\ e change in the condition, tlnancial or otherwise, or in the revenues or operations of the Issuer, from that set forth in the Limited Offering Memorandum that in the reasonable judgment of the Underwriter. is material and adverse and that makes it, in the reasonable judgment of the Underwriter, impracticable to market the Bonds on the terms and ill the manner contemplated in the Llmited Offering Memorandum. (g) All steps to be taken and all instruments and other documents to be executed, and all other legal matters in connection \\1lth the transactions contemplated by this Bond Purchase i\greement shall be reasonably satisfactorv in legal form and effect to the Underwriter and to ,-'ounsel for the l ! nderwn ter (h I At or pnor to the Closing. the Underwriter shall have received copies of each of the followmg documents ( I) The lImited ()ffering Memorandum, and each supplement or amendment thereto as may have been agreed to by the Underwriter, if any, executed on behalf of the Issuer hy the manual or facsimile signature of an Issuer Representative; 4~~78733 J 7 (21 The Bond Resolution, having been duly adopted by the Issuer and being in full force and effect with such supplements or amendments as may have been agreed to by the \ inderwnter: (3 I ('oples of the Indenture certified to be in full force and effect; {4 i ('oples of the ordinances creating and setting the current boundaries of Reinvestment Zone Number Two, ('it) of Corpus Christi, Texas ('Reinvestment Zone Two), and a copy of the resolution creatmg the Issuer and approving its articles of incorporation and by-laws, all certified to be In full force and etTect: (51 A certificate of continued existence with respect to the Issuer from the r exas Secretary of State, a copy of the Issuers Articles of Incorporation certified by the Texas Secretary of State and a certificate of good standing with respect to the Issuer from the Texas (omptroller of Public Accounts, all dated within three days of the Closing Date; (61 A copy of the Tri-Party Agreement and the Interlocal Agreements, with all supplements or amendments enacted through the Closing Date, and a copy of the Project ('ooperation Agreement between the Department of the Army and the City of Corpus Christi, lexas, for Construction of the North Padre Island Storm Damage Reduction and Environmental Restoratlon Project as finally executed by both parties and in full force and effect; (7 I A certificate. dated as of the Closing and signed by an Issuer Representative. solely In hiS or her official capacity, to the effect that, (i) the representations, warranties. and covenants of the Issuer contained herein are true and correct in all material respects as of the ClOSing with the same effect as if made at the Closing; (ii) the Issuer has performed all of its obligations hereunder to be performed at or before the Closing and has satisfied all material conditIOns on Its part to be satisfied hereunder at or before the Closing; (iii) none of the Bond ResolutIOn, the Indenture or the Tri-Party Agreement have been amended, modified, supplemented. or repealed since the date of this Bond Purchase Agreement, except as agreed to hv the l Jnderwriter, and each is in full force and effect; (iv) no litigation or proceeding against the Issuer is pending or. to the best of his or her knowledge, threatened in any court or administratIve body nor, to the best of knowledge, is there a basis for litigation which would fa) contest the right of the directors or officials of the Issuer to hold and exercise their respective positions. (b) contest the due organization and valid existence of the Issuer, (c) contest the validity, due authorization and execution of the Bonds, the Bond Resolution, the Indenture, this Bond Purchase Agreement or the TIi-Party Agreement, or (d) attempt to limit, enjoin or otherwise restrict or prevent the Issuer hum collecting Contract Tax Increments; (v) no event atlecting the Issuer has occurred smce the date of the Limited Offering Memorandum which "hould be disclosed 111 the Limited Offering Memorandum for the purpose for which it is to be used or ,vhlch 11 is necessarv to disclose therein in order to make the statements and information therein, itl light of the Circumstances under which made, not misleading in any respect as of the time of Closing; (vi) the mformation contained in the Limited Offering Memorandum with respect t( I the Bonds, the Is";uer and the Issuers affairs is true and correct in all material respects md, as of the date of the Limited Offenng Memorandum, the Limited Offering Memorandum, \.vith respect to such information, did not. and as of the date of the Closing does not, contain any mtrue statement of a matenal fact or omit to state a material fact required to be stated therein or "'-77873U 8 necessary to make the statements with respect to the Issuer and the Bonds made therein, in the light of the circumstances under which they were made, not misleading; and (vii) with respect to mformatlOll in the Limited Offering Memorandum other than the information relating to the Bonds, the Issuer and the bsuers affairs, he or she has no reason to believe that such information contains any untrue statement of a matenal fact or omits to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; ( 8) A celtificate of the Issuer signed by an appropriate official of the Issuer (a) .,etting forth the facts, estimates and circumstances In existence on the date of the Closing, which establish that it is not expected that the proceeds of the Bonds will be used in a manner that would cause the Bonds to he "arbitrage bonds' within the meaning of Section 148 of the Internal Revenue Code of 19X6. as amended (the "Code'), and any applicable regulations (whether final, temporary nr proposed). issued pursuant to the Code, and (b) certifying that to the best of the knowledge and belief of the Issuer there are no other facts, estimates or circumstances that would materiallv change the conclusions, representations and expectations contained in such certificate; (9) The approving opInIOn of McCall, Parkhurst & Horton L.L.P., as bond ,;ounsel, to substantially the fonn set forth in the Limited Offering Memorandum; ( (0) A supplemental opinion of hond counsel addressed to the Issuer and the i nderwnter, substantially tll the effect that (I the Issuer has duly approved and authorized the distribution of the Limited OfTering Memorandum: (11) the Bonds are exempted secuntIes under the Securities Act of 1933, as amended (the"j933 Ad'), and it is not necessary, in connection with the offering and sale of the Bonds, to register any securities under the 1 933 Act and neither the Bond Resolution nor the Indenture need be qualified under the Trust Indenture Act of 1939 (the'Trust Indenture Ad'); (ill) the intormation contained in the Limited Offering Memorandum under the headings "THE SERIES 2006 BONDS:'''PLAN OF FINANCING:"'SECURITY AND SOURCE OF PAYMENT"1HE ISSUER:"TI-lE ZONE;"'LEGAL MATTERS:"'fAXMATTERS;' and "LEGAL INVESTMEN rAND ELICiIBILITY TO SECURE PUBLIC FUNDS IN TEXAS' filirly summarizes the matters of law and the information purported to be shown therein and the documents Included tn Appendices A, Band E confonn to the respective documents delivered at Closing; and (i \ ) stating that the Underwriter may rely on the approving Opinion of Bond Counsel described as ,f it were addressed to it: ( II) All opinion of the City Attorney of the City, as general counsel to the ! ssuer, suhstantially to the effect set torth in Exhibit B hereto; (12)<\n opinion {If the City Attorney of the City as general counsel to Reinvestment Zone Two. or a certificate from the City, to the effect that Reinvestment Zone Two is validly created and in full force and etIeet and the Tri-Party Agreement was duly authorized ~'~78733l 9 executed and delivered and is a valid and binding obligation of Reinvestment Zone Two, enforceable in accordance with its terms, except to the extent that its enforceability may be limited b) applicable pwvisions of the federal bankruptcy laws and any other similar laws affecting the rights of creditors of political subdivisions generally, and except that such enforceabIlity is subject t,) general principles of equity and the exercise of judicial discretion (regardless of whether such enforceabilitv is considered in a proceeding in law or at equity); ( I 3) I vidence satisfactnry to the Underwriter, which may take the form of a legal opmlon of counsel h' the City'. or a certificate from the City, to the effect that the Tri-Party \greement. and the City Interlncal Agreement was duly authorized, executed and delivered are valid and binding obligations of the Cit:y enforceable m accordance with their respective terms; ( 14) I vldence satisfactory to the Underwriter, which may take the form of a legal opmlun of counsel to the County or a certificate from the City, to the effect that the County lnterlocal Agreement was duly authorized, executed and delivered and is a valid and binding dhligation of the CountV' enforceable in accordance with its terms: ( 15) Fvidence satisfactory to the Underwriter, which may take the form of a legal opmlon of counsel to the College. or a certificate from the City, to the effect that the College lnterlocal Agreement was duly authorized, executed and delivered and is a valid and hinding obligation ofthe College, enforceable in accordance with its terms; ( I/)) [vidence satisfactory to the Underwriter, which may take the form of a legal opmlOn of counsel to the Hospital District, or a certificate from the City, to the effect that the Hospital District lnterlocal Agreement was duly authorized, executed and delivered and is a \alid and hinding ohligation of the Hospital District enforceable in accordance with its terms; ( 17) An ,)pimon. dated the date of the Closing and addressed to the ! nderwnter. of Fulbright & Jaworski I. 1 P., Underwriter's counsel, to the effect that: ( Il the Bonds are exempted securities under the 1933 Act and it is not necessary, m connection wlth the offering and sale of the Bonds, to register any securities under the 1933 Act and neither the Bond Resolution nor the Indenture need be qualified under the Trust Indenture Act; and (Il) based upon their participation in conferences at which the Limited Offering Memorandum was discussed. but without having undertaken to determine mdependentl y the accuracy. completeness or fairness of the statements contained in the Limited Offering Memorandum. such counsel has no reason to believe that the Limited Offering Memorandum contains an) untrue statement of a material fact or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading (except for any financial, forecast, technical and statistical statements and data included in the Limited Offering Memorandum, in each case as to which no view need be expressed): ( 18) The approving opmion of the Attorney General of the State of Texas in respect of the Bonds: ~,,-")g7313 10 ( 19) The registratIOn certificate of the Comptroller of Public Accounts of the State of Texas m respect of the Bonds; and (20) Such additional legal opmions, certificates, instruments and other documents as Bond CounseL the Underwriter or counsel to the underwriter may reasonably request to evidence the truth and accuracy, as of the date hereof and as of the date of the Closing, of the Issuers representations and warranties contained herein and of the statements and the due performance or satlsfaction by the Issuer on or prior to the date of the Closing of all the respective agreements then to be performed and conditions then to be satisfied by the Issuer. All oj the opinions, letters, certificates, instruments and other documents mentioned above or elsewhere in this Bond Purchase Agreement shall be deemed to be in .:omplianct' with the provisIOns hereof if but only if they are in form and substance satisfactory to the Underwriter. If the Issuer shall be unable to satisty the conditions to the obligations of the !. nderwnter to purchase. tt' accept dehvery of and to pay for the Bonds contained in this Bond Purchase Agreement. or if the obligations of the Underwriter to purchase, to accept delivery of dnd to pay for the Bonds shall be termmated for any reason permitted by this Bond Purchase '\greement. this Bond Purchase Agreement shall terminate and neither the Underwriter nor the Issuer shall be under any further obligatIOn hereunder. except that the check referred to in Paragraph I shall be Ilnmedlately returned to the Underwriter by the Issuer. 8. Termination. The Underwriter shall have the right to cancel its obligation to purchase the Bonds it: behveen the date of this Bond Purchase Agreement and the Closing, the market price or marketability of the Bonds shall be materially adversely affected in the sole ludgment ofthe Underwriter, reasonably exercised (as evidenced by a written notice to the Issuer lerminating the obligation ofthe Underwnter to accept delivery of and pay for the Bonds), by the occurrence (If any of the following: (a) Adverse Effect on income Tax Status. Legislation shall be enacted by or mtroduced m the Congress or recommended to the Congress for passage by the President of the Lnited States, or the Treasury Department of the United States or the Internal Revenue Service \)f favorably reported for passage to either House of the Congress by any committee of such House to which such legislation has been referred for consideration, a decision by a court of the (Joited States or of the State or the United States Tax Court shall be rendered, or an order, ruling, regulation (final, temporary or proposed), press release, statement or other form of notice by or i. m behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall he made or proposed, the effect of any or all of which would be to impose, directly or indirectly, federal income taxation upon interest received on obligations of the general character of the Bonds. of the interest on the Bond as described in the Limited Offering Memorandum, Of other action Of events shall have transpired which may have the purpose or effect, directly or indirectly. of changing the federal income tax consequences of any ()f the transactions contemplated herein, or any other action or events shall have occurred which, to the reasonable judgment of the t':nderwriter, materially adversely affect the market for the Bonds or the market price generally of obligations of the general character of the Bonds; 4'"787333 11 (b) Adverse Effect on Securities Law Exemptions. Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree, or injunction issued by any ;.:ourt of competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other fonTI of n\)tice Issued or made by or on behalf of the United States Securities and Exchange ('ommission, or any other governmental agency having jurisdiction of the subJect matter, to the effect that obligations of the general character of the Bonds, including any or allunderiying arrangements, are not exempt from registration under or other requirements "f the 19~~ Act. or that the Bond Resolution is not exempt from qualification under or other requirements of the [rust Indenture Act or that the Issuance, offering, or sale of obligations of the general character of the Bonds, including any and all underlying arrangements, as contemplated hereby or b\ the Limited Offering Memorandum or otherwise, is or would be in violation ofthe federal seCLlrities law as amended and then in effect; Ie) SuspensIOn on Moratorium. A general suspension of trading in securities on the \Jew York Stock Exchange or the American Stock Exchange, the establishment of minimum prices on either such exchange, the establishment of material restrictions (not in force as of the date hereof) upon trading securities generally by any governmental authority or any national securities exchange, a general banking moratorium declared by federal, State of New York, or State offiCIals authonzed tp do so: (d) Change of Law. Any amendment to the federal or Texas Constitution or action h) any federal or Texas court. legislatIve body. regulatory body, or other federal or Texas authorit\ materially adversely affecting the tax status of the Issuer, its property, income, securities lor interest thereon). or the validity or enforceability of the assessments or the levy of taxes generating Contract Tax Increment. or the ability of the Issuer to receive Contract Tax Increment from the City. the County, the Hospital District or the College; ( e) Adverse Effect on Disclosure. Any event occumng, or information becoming known whIch, in the reasonable judgment of the Underwriter, makes untrue in any material respect any material statement or information contained in the Limited Offering Memorandum, or has the effect that the Limited Offering Memorandum contains any untrue statement of material fact or omits to state a matenal fact required to be stated therein or necessary to make the statements therem, in the light of rhe circumstances under which they were made, not mIsleading. ( n Matenal Change. There shall have occurred since the date of this Bond Purchase Agreement any materially adverse change 10 the affairs or financial condition of the Issuer; tg) Armed Contlict. The United States shall have become engaged in hostilities w'hich have resulted in a declaration of war or a national emergency, or there shall have occurred any other outbreak or substantial escalation of existing hostilities or a national or international calamity Of ~risis, financial or otherwIse, the effect of such outbreak, calamity or crisis on the tinancial markets of the United States being such as, in the reasonable opinion of the I fnderwnter. would materially and adversely affect the ability of the Underwriter to market the Ronds;d '''7787333 12 (h) Amendment of Supplement. Any fact or event shall exist or have existed that, in the Undenvriters reasonable judgment. requires or has required an amendment of or supplement to the Limited Offering Memorandum: and (1 ) Prohibition Against Resale. The purchase of and payment for the Bonds by the Underwriter. or the resale 1)1' the Bonds by the Underwriter, on the terms and conditions herein provided shall be prohibited by any applicable law, governmental authority, board, agency or comrrnsSlOn. 9. Expenses. (a) The Undef\\ riter shall be under no obligation to pay, and the Issuer shall pay, the following expenses l11cident to the performance of the Issuers obligations hereunder, including, but not limited to (I) the cost of preparation and printing of the Bonds; (ii) the fees and disbursements of Bond (ounse!: (iii) the fees and disbursements of any other engineers, accountants, and other experts, consultants or adVIsors retained by the Issuer; (iv) the costs of preparing, printing and mailing the Limited Offering Memorandum; (v) fees of the Issuers tinancial advisor; (vi i the transcript review fee of the Attorney General of Texas; (vii) the fees and expenses of the Pa)l11g AgenUReglstrar and Trustee; (viii) the out-of-pocket, miscellaneous and closl11g expenses. including the cost of travel. of the officers of the Issuer; [(ix) the fees and disbursements of counsel retained by the Underwriter;] and (x) any other expenses mutually agreed to by the Issuer and the Underwriter to be reasonably considered expenses of the Issuer which are incident to the transactions contemplated hereby. (h) fhe U ndef\\riter shall pa y (i) the cost of preparation and printing of this Bond Purchase Agreement. (i!) all advertIsing expenses in connection with the offering of the Bonds; and (iii) :dl other expenses mcurred by !t in connection with the offering of the Bonds. IH. Notice,\~ Any notice or other communication to be given to the Issuer under this Bond Purchase Agreement may be given by delivering the same in writing to North Padre Island Development Corporation. 1201 Leopard, Corpus Christi, Texas 78401, Attention: Executive Director. and any notlce or other communication to be given to the Underwriter under this Bond Purchase' Agreement may be given by delivering the same in writing to M.E. Allison & Co., Inc., ',)50 East Basse Road. Second Floor. San Antonio. Texas 78209, 11. Parties in Interest. fhis Bond Purchase Agreement as heretofore specified shall constitute the entire agreement between us and is made solely for the benefit ofthe Issuer and the Underwnter (including successors or assigns of the Underwriter) and no other person shall acquire or have any nght hereunder or by virtue hereof This Bond Purchase Agreement may not he assigned by the Issue! All ,}f the Issuers representations, warranties and agreements contained in this Bond Purchase Agreement shall remain operative and in full force and effect, regardless uf (i) any mveshgations made by or on behalf of the Underwriter; (ii) delivery of and payment tor the Bonds pursuant to this Bond Purchase Agreement; and (iii) any termination of this Bond Purchase Agreement. ,,0;7787333 D 12. Effectivene...'s. This Bond Purchase Agreement shall become effective upon the acceptance hereof hy the Issuers and shall be valid and enforceable at the time of such acceptance 13, Choice of Law. This Bond Purchase Agreement shall be governed by and construed In accordance wIth the law of the State of Texas. 14. Severability. If any provIsion of this Bond Purchase Agreement shall be held or deemed to be or shall. 111 fact. be Invalid, inoperative or unenforceable as applied in any particular case in any Jurisdiction \If jUflsdictions. or m all jurisdictions because it conflicts with any provisIOn of any Constitution. statute, rule of public policy, or any other reason, such CIrcumstances shall not have the effect of rendering the provision in question invalid, inoperative ill' unentorceable In any other case or circumstance. or of rendering any other provision or provisions of this Bond Purchase Agreement invalid, inoperative or unenforceable to any extent whatevel . 15. Business Day. FOl purposes of this Bond Purchase Agreement, "business day' means any day on which the New York Stock Exchange is open for trading. 16. Section Headings. SectlOn headings have been inserted in this Bond Purchase '\greemenl as a matter of convenience of reference only, and it is agreed that such section headings are nOl a part of this Bond Purchase Agreement and will not be used in the mterpretatlUn of any provisIOns of this Bond Purchase Agreement. 17. Counterparts. This Bond Purchase Agreement may be executed in several counterparts each of \\ hich shall be regarded as an original (with the same effect as if the SIgnatures thereto and herelo were upon the same document) and all of which shall constitute one and the same document [EXECl iTION PAGE FOLLOWS] +,7"87333 14 It you agree wIth the foregoing. please sign the enclosed counterpart of this Bond Purchase Agreement and return it to the Underwriter. This Bond Purchase Agreement shall become j hinding ahJTeement between you and the Underwriter when at least the counterpart of this letter shall have been sJgned by or nn behalf of each of the parties hereto. Respectfully submitted, M.E. ALLISON & CO., JNC. By:_____________. Title: Accepted this day of .2006. NORTH PADRE ISLAND DEVELOPMENT CORPORA TION By: Title: 4" ~787333 15 EXHIBIT A BOND TERMS Dated Date: July 1,2006 (Bonds bear interest from date of delivery). $2.900,000 September 15, 2022 Principal Amount: 'l-faturity Date: Interest Rate: Coupon 0/0 Yield % Interest Payment Dates: Redemption Provisions: March J 5 and September J 5. commencing March 15, 2007 Optional Redemption.,- The Bonds are subject to redemption prior to maturity at the option of the Issuer, in whole or in part. from time to time on [~~_p____ J, or any date thereafter, at a price equal to the pnnclpal amount of Series 2006 Bonds to be redeemed, plus a premium equal to the following percentages of principal amount: Redempti,lO Period Percentage From September 15. i ] to September 14, [J ] to September 14. L___J [~% [~% [~% [-]% From September 15. ! From September 15. i ] to September 14. I From September 15. i ] to September 14. [ _.._~ --- J ] to September 14, L~~__] [~% From September 15, __~ From September 15. i__ ] and Thereafter 0.0% provided. that If any Bond is selected f()r redemption in part it shall not be redeemed in an amount that would, upon ex change. result in a Bond in a denomination less than $100,000. Mandatory Sinkmg Fund Redemption.,-The Bonds are subject to mandatory sinking fund redemption prior to maturity in the amounts and on the dates set out in the attached Schedule A. The Bonds to be redeemed in any year by mandatory sinking fund redemption shall be selected by lot from the Bonds then subject to redemption; provided, that if any Bond is selected for redemption in part it shall not be redeemed in an amount that would, upon exchange, result in 1 Bond in a denomination less than S 1 00.000. l <778733 3 Exhibit A-Page 1 The princIpal amount of Bonds required to be redeemed on each such redemption date pursuant to the foregoing operation of the mandatory sinking fund redemption shall be reduced, at the optIOn of the Issuer, hy the principal amount of the bonds which, at least 45 days prior to the mandatory sinkmg funds redemption date, (1) shall have been acquired by the Issuer and delivered to lPMorgan Chase Bank, National Association, as paying agent/registrar (the"Paying 4gent/Registrar) for cancellation or (2) shall have been acquired and canceled by the Paying i\gent/Reglstrar a1 the dIrection of the Issuer, in either case of (l ) or (2) at a price not exceeding the par ..)r princIpal ctmOullt of such Bonds. or (J) shall have been redeemed pursuant to the )ptional redemption provisJOns described above and not theretofore credited against a mandatory 'lmking tund redemptlOIi During any penod in which ownership of the Bonds is determined by a book entry at a securities depository f{)] the Bonds, if tewer than all of the bonds of the same maturity and bearing the same interest rate are to be redeemed, the particular Bonds of such maturity to be redeemed shall be selected in accordance with the arrangements between the Issuer and the secuntJes depository: prm ided, that If any Bond is selected for redemption in part ;t shall no! be redeemed 1I1 an amount that would result. upon exchange, in a Bond in a denomination less than S 1 00,000 45778733.3 Exhibit A- Page 2 A TT ACHMENT A TO EXHIBIT A September 15 Principal Amount Total 2.900.000 - * maturi ty ~,7787313 Attachment A to Exhibit A-Page 1 EXHIBIT B (lPINION OF GENER/\L COUNSEL TO THE ISSUER I The Issuer i~ validly existing as a not-for-profit local government corporation in good standing under the laws of the State nfTexas It is exempt from payment of federal income taxes on Its Income 2 The Issuer has the corporate power to execute, deliver and perform its obligations under the Bond Purchase Agreement, the Bond Resolution, the Indenture, the Bonds, and the Tri- Party Agreement, and tc' pledge the Contract Tax Increments to be received by it and the other moneys, nghts and interests pledged pursuant to the Indenture. 1 The Issuer nas duly authorized. executed and delivered the Bond Purchase ~greement. the Bond Resolution. the Indenture. the Bonds, and the Tri-Party Agreement. 4 The Bond Resolution, the Indenture, the Purchase Agreement, and the Tri-Party \greement constitute the iegaL valid and binding obligations of the Issuer enforceable in accordance with their terms. except as the enforceability thereof may be subject to or limited by applicable hankruptc). Insolvency. reorganization. arrangement, moratorium, and other similar laws relatmg to or affectmg creditors' rights generally. and subject as to enforceability, to general principles 0 f eq uitv 5 The execution, delivery and performance by the Issuer of the Bond Resolution, the Indenture. the Bond Purchase Agreement, and the Tn-Party Agreement do not require the authorization. approval or consent of any governmental authority, except for such authorizations, approvals or consents as ha\e alreadv been obtained 6 The t'xecutil'n and deliver) of the Bond Resolution, the Indenture, the Bond Purchase Agreement and the Tn-Party Agreement, and compliance with the terms and provisions of each thereof. will not conflict with or constitute a breach of or default under, or, except With respect to the pledge of the Pledged Revenues (as such term is defined in the Indenture) under the Indenture, result 111 the creation of any lien, charge or encumbrance under (a, the Articles of Incorporation or Byla\vs of the Issuer: (b) any material indenture, mortgage, deed of trust. a f,'Teement or other instrument known to us to which the Issuer is a party or is utherwise subject to or bound; or (c) any order, law. rule or regulation applicable to the Issuer of any court or other governmental bod v of which we are aware. 7 There is no action. suit, proceeding or investigation at law or in equity before or by any court. against i)r affecting the Issuer wherein an adverse determination would affect the corporate power of the Issuer to make or perform its obligations under the Bond Purchase Agreement. the Bond Resolution, the Indenture or the Tri-Party Agreement, or which would impair the issuance, sale or delivery of the Bonds. 8 The Issuer has pledged, and all necessary action on the part of the Issuer has been taken as required to pledge under the Indenture, all of the Issuer's right, title and interest in the Pledged Revenues to the Trustee on behalf of the holders of the Bonds. 4 '~787331 Exhibit B- Page I 'I The lssuef~ pledge of the Pledged Revenues is valid and binding in accordance \vith its tem1S without further action on its part and without any filing or recording with respect thereto except III the records of the Issuer o Nothing III any statute. regulation, order or rule of law applicable to or affecting the Issuer eIther grants or affords to the Issuer the benefit of any claim or defense of sovereign or governmental immunity trom. or otherwise operates to exempt the Issuer from service of, process ill suit in an appropriate court having jurisdiction over the Issuer in connection with any ,:ontract claim which may be asserted '>, ith respect to the matters which are the subject of the Bonds, the Bond ResolutIon. the Indenture, the Bond Purchase Agreement or the Tri-Party '\greement I fhe Illf\)rmation contalBcd in the Llmited Offering Memorandum under the heading ''THE ISSUER' and "TIlE ZONE' fairly summarizes the matters of law and information purported to be shown therein, ~S778733.3 Exhibit B-Page 2 26 CITY COUNCIL AGENDA MEMORANDUM AQENDA ITEM: A. Motion to amend prior to second reading Ordinance authorizing City Manager, or designee, to execute a Lease Agreement with Peter Bryant (MMD Communications) for a term of 8 days in April, 2007, for the Texas International Yacht & Jet Plane Show at Peoples S1. T -Head; providing two 5 year renewals upon City Manager, or designee, finding show successful for city; by amending Lease Section 6 to provide that City, in lieu of Marina rental fees, shall receive greater of: $25.000 or 10% of Net Profits, as defined in Exhibit F; providing for severance. City Council Action Date: May 30, 2006 B. Second reading Ordinance authorizing City Manager, or designee, to execute a Le818 Agreement, as amended, with Peter Bryant (MMD Communications) for a term of 8 dllys in April, 2007, for the Texas International Yacht & Jet Plane Show at Peoples St. T -Head; providing two 5 year renewals upon City Manager, or designee, finding show successful for city; providing for severance; and providing for publication. ISSUE: Peter Bryant, President of MMD Communications, proposes that "The Texas International Yacht & Jet Plane Show" be held at the Corpus Christi Marina in April 2007. Together with the boat show, Mr. Bryant also wishes to concurrently host a static Aircraft I Jet Show with Classic Cars at the Corpus Christi International Airport. The City Manager, or designee, is authorized to execute a Lease Agreement with Peter Bryant (MMD Communications, a Florida corporation) for a term of 8 days in April, 2007, for the Texas Intemational Yacht & Jet Plane Show at Peoples St. T-head. The lease Agreements are attached as Exhibit A and copies are on file with the City Secretary. REQUIRED COUNCIL ACTION: City Council is required to authorize all leases longer than one year PREVIOUS COUNCIL ACTION: None A presentation was made to City Council November 15, 2005 concerning "The Texas International Yacht & Jet Plane Show" scheduled for April 2007 at the Corpus Christi Marina. CONa..USION AND RECOMMENDATION: It is City Staff~ recommen ation that the City Council approve the Lease Agreements. l / / ' , / ~ Sally Ga , Director Parks a Recreation Department Attaehment: Background Information BACKGROUND INFORMATION The Texas International Boat Show will be the first of its kind in Corpus Christi. Peter Bryent, President of MMD Communications, Inc. first met with Marina Superintendent, Peter Davidson, in August 2005 to present a plan for the event. Three subsequent meetings held in October 2005 and March 2006 have been held with City staff and community partners to discuss issues, logistics, and marketing for the event. Mr. Bryant also made a presentation to City Council on November 15, 2005 concerning the proposed event Peter Bryant has worked for the past thirty years as a publisher and Exhibition Organizer in various locations around the world, including the USA, Mexico, Russia, Europe and the Far East. In 2002, Mr. Bryant has organized highly successful International Yacht & Jet Shows In The Bahamas Mr. Bryant became interested in hosting an International Yacht and Jet Show in Corpus Christi after his son, who lives in Houston, saw an article in the "Dallas Morning News" regarding the $6,000,000 improvements to the Corpus Christi Marina. Page 1 of 2 ORDINANCE AUTHORIZING CITY MANAGER, OR DESIGNEE, TO EXECUTE A LEASE AGREEMENT WITH PETER BRYANT (MMD COMMUNICATIONS) FOR A TERM OF 8 DAYS IN APRIL, 2007, FOR THE TEXAS INTERNATIONAL YACHT & JET PLANE SHOW AT PEOPLES ST. T-HEAD; PROVIDING TWO 5 YEAR RENEWALS UPON CITY MANAGER, OR DESIGNEE, FINDING SHOW SUCCESSFUL FOR CITY; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. The City Manager, or designee, is authorized to execute a Lease Agreement with Peter Bryant (MMD Communications, a Florida corporation) for a term of 8 days in April, 2007, for the Texas International Yacht & Jet Plane Show at Peoples S1. T-head. The Lease Agreement provides for two 5 year renewals (with an 8 day term in April of 2008-12 and 2013-17) upon City Manager, or designee, finding Show successful for City. The Lease Agreement is attached as Exhibit A and a copy is on file with the City Secretary. SECTION 2. Under Article IX, Section 3 of the City Charter, this ordinance and the Lease Agreement are effective on the 61 st day after City Council adoption of this ordinance on second and final reading; and the second and final reading of this ordinance is at least twenty eight (28) days after the first reading. Each reading was done at a regular meeting of the City Council. seCTION 3. The City Council intends that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance is held invalid or unconstitutional by final judgment of a court of competent jurisdiction that judgment shall not affect any other section, paragraph, subdivision, clause. phrase, word or provision of this ordinance. SECTION 4. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. A.rv'\~ YJJ..N ~ \,Qr'I C:\(Doyle 03. 061P ARK&RE C.2 7\Special. E vents\06. 0404DC. T xlntl. Y achtJet. Lease. Renew. 2017. Ord. doc Page 2 of 2 The fore~g ordinan~ ~as. read for the first time and passed to its second reading on this the~ay of ~rv:...e ,2006, by the following vote: Henry Garrett _~_ Rex A. Kinnison G1:L- ---+ -~ The foregoing ordinance was read for the second time and passed finally on this the "_ day of ~___d_ 2006, by the following vote: Brent Chesney John E. Marez ~ ~ Melody Cooper Jesse Noyola Jerry Garcia Mark Scott Wiliam Kelly Henry Garrett Rex A. Kinnison Brent Chesney Melody Cooper John E. Marez Jesse Noyola Jerry Garcia Mark Scott William Kelly PASSED AND APPROVED on the .____ day of ,2006 ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED 4 April 2006 Doyle Curtis Chief, Administrative Law Section Senior Assistant City Attorney For City Attorney C:\(Doyle, 03. 061P ARK&RE C.2 7lSpecial. E ventsl06 .0404DC. T xlntl. Y achIJet.Lease, Renew. 20 17. Ord ,doc Page 1 of 21 2007 TEXAS INTERNATIONAL YACHT & JET PLANE SHOW LEASE AGREEMENT (With Two 5 Yr Renewals: 2008.12 & 2013-17) BETWEEN THE CITY OF CORPUS CHRISTI AND MMD COMMUNICATIONS THE STATE OF TEXAS 9 9 KNOW ALL PERSONS BY THESE PRESENTS: 9 COUNTY OF NUECES This lease agreement ("Lease") is entered into by and between the City of Corpus Christi, a Texas home rule municipal corporation ("City"), acting through its duly authorized City Manager or his designee ("City Manager"), and MMD Communications ("Lessee"), a Florida corporation. NOW, THEREFORE, City and Lessee, in consideration of the mutual promises and covenants contained herein, agree as follows: Section 1 Definitions. (A) City means the City of Corpus Christi, Nueces County, Texas, a home rule municipal corporation (B) City Attorney means the City's Attorney or the City Attorney's designee (C) City Council means the City's City Council (0) City Manager means the City's Manager or the City Manager's designee (E) Code means the City's Code of Ordinances, as amended (F) Director means the City's Director of Parks and Recreation or the Director's designee (G) Event means the Texas International Yacht & Jet Plane Show conducted and sponsored by Lessee. (H) Lease means this agreement and all Exhibits and attachments (I) Lessee means MMD Communications ("Lessee"), a Florida corporation organizing and managing the annual Texas International Yacht & Jet Plane Show (J) Lessee's Agent means a duly authorized representative of MMD Communications ;;\(Qoyle.03.06\PARK&REC.27\Special.Evenls\06.0525DC. Txjnlf. YachtJet Lease.Renew.20 17.doc Page 2 of 21 (K) Marina means the City's Municipal Marina (L) Pollee Chief means the City's Police Chief or the Police Chiefs designee (M) Premises means the site for the Event, more fully described in the attached Exhibits A, B, and C that are incorporated by reference in this Lease as if fully set out in their entirety (N) Risk Manager means the City's Director of Risk Management or the Director of Risk Management's designee (0) Traffic Engineer means the City's Traffic Engineer or the Traffic Engineer's designee Section 2 Term; 8 Days in April 2007; Two 5 Year Renewals; Effective Date. (A) 8 Days in April 2007 This Lease is for a term of eight (8) days, beginning on April 23, 2007 at 12:01 p.m. Lessee shall be entitled to non-exclusive use, for the purpose of set-up and take-down preparations, of the Premises for a period of eight (8) consecutive days. from April 23,2007 at 12:01 p.m. through April 30, 2007 at 6:00 p.m.; .and to the exclusive use of said Premises for a period of up to four (4) days from April 26, 2007 at 6:00 am through April 29, 2007 at 6:00 p.m. (8) Two 5 Year Renewals City Manager shall renew this Lease for a term of eight (8) days in April 2008-12 if City Manager finds that the 2007 Event is successful for City. Further, City Manager shall renew this Lease for a term of eight (8) days in April 2013- 17 if City Manager finds that the 2012 Event is successful for City. The Use Periods for 2007 and the projected Use Periods for 2008-12 and 2013-17 are shown in the attached Exhibit D. (C) Effective Date This Lease is effective on the day of ,2006. (As required by City Charter, the effective date is the 61st day after the adoption by City Council on second and final reading of the ordinance authorizing the execution of this lease.) Section 3 Premises. The City grants to Lessee the privilege of using the following described City property to conduct the Event: (A) Peoples Street T -Head; Shoreline This includes the entire Peoples Street T-Head in the Marina, including boat slips and other amenities. The Shoreline Premises include the northbound lanes of East Shoreline Boulevard (ESS) from the south right-of-way of Schatzel! St. (Schatzel/) to the north right-of-way of Star St. (Star), including median and crossover areas within the above area subject to the restriction in Section 4(B) of this Lease. This area is more fully detailed in the attached Exhibit A. (Lessee must at all times keep an unobstructed pavement conidor at least eighteen (18) feet wide on the east side of ESS from Schatzell to Star for emergency vehicle use.) :\(Doyle.03.06\PARK&R&c.27\Special. EventsI06.0525DC. Txlnfl. YachWet. Lease Renew.2017.doc Page 3 of 21 (8) Fenced Premises The Fenced Premises include fenced-in portions of the Event Premises. This area is more fully detailed in the attached Exhibit A. Note: This Lease does not include the American Bank Center or parking lots adjacent to the American Bank Center. Use of any of these facilities will be covered under a separate agreement, that is executed between the City and Lessee, if this use is determined to be necessary by Lessee. (C) Airport Premises; Separate Lease(s) Note: This Lease does not include the facilities at the Corpus Christi International Airport ("Airport") for the Static Aircraft/Jet Plane Show and the Classic Cars Show. Use of any of these facilities will be covered under one or more separate agreements, executed between the Lessee and City and/or Tenants at the Airport, if this use is determined to be necessary by Lessee. (D) Street closure Areas The street closure process, as outlined by the Traffic Engineer and further described in Section 10 of this Lease, will govern all street closures. Street closure areas are shown in the attached Exhibit B. Section 4 Other Areas; Other Use of Premises. (A) Requests by Lessee for use of additional City-owned areas requires prior written approval from the Director. (8) No concession stand, ride, or other apparatus connected with the Event may be placed in or on the grass or shrubbery areas within the Premises along Shoreline Blvd. without the prior written permission of the Director. Section 5 Event Layout Diagram. At least two weeks prior to the Event, Lessee or Lessee's Agent must provide the Director with a detailed diagram (Exhibit C) showing the final Event layout and including all related activities. Layout of the Event is subject to the approval of the Director. .~:"~;Of (A) In consideration of granting Lessee use of the Premises, Lessee must pay City a use fee of $100. The fee is due and payable upon the City Council's tinal approval of this Lease. This fee is in addition to any other use and permit fees required in this Lease, by City ordinance. or State law. Lessee must pay to Marina rental fees of $00.01 per square foot per day for all Marina areas used on the Peoples Street T-Head (excluding areas covered by City leases to vendors). Also, Lessee must pay to Marina rental fees for in-water boat storage of exhibitor, patrol, medical, and media boats. The rental fees for in-water boat storage will be controlled and governed by separately executed agreements between Lessee and the Marina Superintendent. The Marina rental fees in this Section 6 (B) will be bilfed as an actual and direct cost under Section 7 of this (B . ) >\(DoyJe .03.06\PARK&Al:C.27\Speclal. Events\06. 0525DC.Tx Inti. YachtJet. Lease.Renew.2017 .doc Page 4 of 21 these Marina rental fees, Lessee shall pay to Marina 10% of the. profits from all events staged on the Premiaes, including but not limited to profits from entry fees, admission fees, concessions, and exhibitor contracts including, but not limited to, boat slip fees). . (C) Lessee must pay a deposit of five thousand dollars ($5,000) at least one month in advance of the Event. If paid by check, the check must be a cashier's or certified check and must be made payable to the City of Corpus Christi. The deposit will be first used to reimburse the City for any costs incurred for trash pick-up, for the removal of any structures, or for repairs to City property; provided, however, City will attempt to provide Lessee with reasonable notification before these expenses are incurred to allow Lessee to provide the necessary corrective action at Lessee's cost. If none of these costs are incurred and actual and direct costs are paid as billed, the deposit will be returned to Lessee within ninety (90) days after the Event. Section 7 Actual & Direct Costs; Payment; Late Payment Fee. l A) Lessee shall pay the City, within thirty (30) days after the City submits a bill, for actual and direct costs incurred by City for City services related to and rendered in connection with the Event, including any other City services provided by departments other than Parks & Recreation and Police. (8) The Director shall bill Lessee for these costs within thirty (30) calendar days after the conclusion of the Event. The bill will contain a detailed and itemized listing of the City's charges for services rendered. Upon receipt of a written request from Lessee's Agent, the Director shall furnish reasonable supporting documentation of the charges within ten (10) calendar days of receipt of the request. Lessee's failure to pay City's bill within 30 days after submittal to Lessee shall result in a late payment fee being assessed against Lessee. The late payment fee shall be 5% of the amount due, as shown on City's bill, and this fee will be added to the amount payable to the City. (C) If there is a hurricane or other tropical storm occurrence in the local vicinity that eliminates the Event or that reduces attendance at the Event by more than 50% from the prior year's attendance level, the City Manager is authorized to adjust the billing of the City's actual and direct costs. (D) The City's actual and direct costs, incurred in assisting with the Event, may include, but are not limited to, the following: (1) Damages: Damage to City property as a result of the Event will be billed to Lessee at the cost of repair. Lessee will first be given an opportunity to repair any damage and restore damaged item, premises, or structure to the condition in which Lessee received it. ::\(Doyle.03.06\PARK&REC.27\Speclal. Eventsl06.0525DC. Tx Inti. YachtJet. Lease.Renew.2017. doc Page 5 of 21 (2) Clean Up and Litter Removal: Costs of labor contracted for clean-up during and after the Event. including any additional clean-up that is required by the Directors of relevant City departments at the conclusion of the Event. at applicable City rates for the year billed. Lessee will be given the opportunity to hire and work its own clean-up crew to perform clean up services and litter removal during and after the Event; (3) Security and Crowd & Traffic Control: Costs of City Police Officers provided for security, crowd control, traffic control, and off-site traffic control, at applicable City rates for the Police Officers assigned, and costs for additional directional signage, barricades, and cones or other supplemental traffic control devices, as well as the associated set-up costs, that are provided by the City. The Police Chief shall determine the number of officers needed for the Event, including during set-up and take down preparations, in the interest of public safety: and (4) Costs for all Marina utilities, including but not limited to electricity, water, and sewage disposal services, used by exhibitor boats at Marina and not paid for by exhibitors before Event is over. (5) Costs for all Marina utilities, including but not limited to electricity, water, and sewage disposal services, used by Lessee or Lessee's agents at Marina and not paid for by Lessee or Lessee's agents before Event is over. (6) Costs for any other services requested by Lessee or Lessee's Agent and provided by the City. Section 8 Emergency Contact Numbers; Notice. (A) Lessee shall provide emergency contact numbers to the City's Marina Superintendent and the Director at least one week in advance of the Event. (8) All notices, demands. requests, or replies provided for or permitted, under this Lease. by either party must be in writing and must be delivered by one of the following methods: (1) by personal delivery; (2) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage. prepaid; (3) by prepaid telegram: (4) by deposit with an overnight express delivery service, for which service has been prepaid; or, (5) by fax transmission. Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax will be deemed effective upon transmission with proof of delivery to the receiving party. All these communications must be made only to the following: 1'10 the Ci~: If to the lessee: ;:I(Doyle.03,06IPARK&REC.27\Special.EventsI06,0525DC.Txlnti. YachtJet. Lease. Renew, 20 17.cIoc Page 6 of 21 Director of Parks and Recreation Peter Bryant MMD Communications City of Corpus Christi 1201 Leopard Street, 78401 P.O. Box 9277. 78469-9277 1801 S. Federal Highway Suite 224 Corpus Christi, Texas Delray Beach, FL 33483 (561) 279-0410 FAX (561) 279-0433 (361) 880-3461 FAX (361) 880-3864 E-mail SallyG@cctexas.com Peter@iyjs.com Either party may change the address to which notice is sent by using a method set out above. Lessee shall notify the City of an address change within ten (10) days atter the address is changed. Section 9 Public Notices. Lessee shall, at its own expense, provide to the City's Mama Superintendent, for distribution to the public, Marina tenants, and commercial enti1les, public notices detailing the Event's scheduled activities. The notices shall be provided within ten (10) working days of the City Council's approval of this Lease. All postal expenses incurred by the City Marina in mailing notices for the Event will be billed to the Lessee under Section 7 of this Lease. Sectton 10 Temporary Street Closures. (A) Lessee must make application to and receive permission from the City for the temporary closure of any streets, in accordance with Chapter 49 of the Code. Lessee must comply with the application procedures, to obtain a permit for temporary street closures, that are contained in the Code, including application cut- off dates and permit fees. (8) Except as set out in the Code, Lessee must not obstruct or interfere with traffic on Shoreline Boulevard, either northbound or southbound, at any time during the term of this Lease. (C) All street closures require the approval of the City Council to confirm the closures. Lessee acknowledges that the decision to confirm the closure of streets is within the sole discretion of the City Council, acting upon the application, at the time the application is submitted. Section 11 Parking. ::\(Ooyle. 03.06\PARK&REC .27\Special.Events\06.0525DC. Txlnfl. YachtJet Lease.Renew.2017.doc Page 7 of 21 (A) lessee shall provide parking and signage, for people with disabilities. in close proximity to the Event entrance and its related activities, as the areas are defined in the Premises maps (Exhibits A, e, & C). (8) In addition, Lessee shall provide five (5) parking passes, if passes are based on City's needs, for City personnel scheduled to work during the Event. (C) lessee must endeavor to include information on parking restrictions and parking options in printed pre-Event publicity generated by Lessee. Section 12 Barricades, Traffic Signs. Lessee shall provide, at its sole cost and expense, for the installation and maintenance of all required barricades, traffic signs, signs to limit public viewing areas, and other traffic control devices for the safe control of vehicular and pedestrian traffic at, and external to, the Premises as set forth in the traffic control plan approved by the Traffic Engineer for the Event. The Traffic Engineer may require Lessee to provide temporary directional signage to the nearby attractions/facilities affected by any street closures and traffic circulation around the Event. Section 13 Premises Signage and Advertising. All on-Premises signage and advertising that Lessee proposes to utilize for the Event must receive the Director's prior written approval. Lessee or Lessee's Agent may request inflatable advertising for only those events that receive national television exposure. Section 14 Rest Rooms; First Aid; Drinking Water. Lessee shall provide functional and sanitary portable restrooms, including restrooms for people with special needs, and first aid stations, with drinking water, in both the viewing area of the Premises and on the Peoples Street T -Head in the Marina. All of the aforementioned items shall be provtded throughout the duration of the Event. Section 15 Additional Security. Lessee must separately contract and pay for any additional security, such as daily pre and post-Event public viewing hours and night watch security, that Lessee deems necessary in the crane and patrol boat dock areas. If this security is provided by City's Police Officers, the expense will be billed to Lessee as an actual and direct cost in accordance with Section 6 of this Lease. Section 16 Insurance. (A) lessee shall secure and maintain, at lessee's sole expense during the term of this Lease. (1) a Commercial General Liability insurance policy, (2) a Liquor Liability insurance policy, (3) an Automobile Liability insurance policy, (4) an Accident Insurance Policy insuring Volunteers, and (5) Workers' Compensation insurance; all required policies shall have the limits and requirements shown in the attached Exhibit E (8) The Certificate(s) of Insurance must be sent to the Risk Manager at least two (2) weeks prior to the starting date of the Event. The Certificate(s) of Insurance must ::\(Doyle.03.06\PARK&REC.27\SpectaI.EventSI06. 0525DC. Txlntl. YachtJet.lease. Renew.2017. doc Page 8 of 21 provide at least thirty (30) days written notice of cancellation, intent to not renew, or material change of any coverage required in Exhibit E. fe) Lessee shall provide copies of all insurance policies to the City Attorney upon the City Manager's written request. (0) Lessee shall require that any vendor that sells alcoholic beverages at the Event furnish proof of Liquor Liability insurance with the limits and requirements set out in Exhibit E. The Certificate(s) of Insurance must be sent to the Risk Manager at least two (2) weeks prior to the starting date of the Event and must provide that the City receive at least thirty (30) days written notice of cancellation, intent not to renew, or material change of any coverage required in Exhibit E. Section 17 Indemnity. Lessee ("Indemnitor") hereby agrees to fully indemnify, save and hold harmless the City of Corpus Christi, its officers, employees, agents, representatives, and servants ("Indemnitees") against any and aI/liability, damage, loss, claims, demands and actions of any nature whatsoever on account of personal injuries (including, without limitation on the foregoing, wotfrers' compensation, premises defects, and death claims), or property loss or damage of any kind whatsoever, which arise out of, are In any manner connected with, or are caused by, or are claimed to arise out of, are claimed to be in any manner connected with, or are claimed to be caused by, either proximately or remotely, wholly or in part, an act or omission, negligence or misconduct by Indemnitor, Indemnitor's officers, employees, agents, representatives, servants, contractors, patrons, licensees or invitees entering upon the PreMises (as described in Section 3 of this Lease) including, but not limifed to, those portions of Shoreline Boulevard and adjacent portions of the road median, the Seawall, and the Marina, that are closed to participate in, hold, attend, or observe the Event and asseciated activities, with the expressed or implied invitation or permission of the Indemnitor and including, but not limited to, exposure to the hazards commonly associated with large crowds, stre.ts closures, third-party food preparation and distribution, high speed boat racing, and excessive heat; or when any said injury or damage is the result, proximate or remote, of the violation by Indemnitees or any of them, Indemnitor, or any of Indemnitor's agents, representatives, servants, employees, contractors, patrons, guests, licensees, or invitees of any law, ordinance, or governmental order of any kind; or when said injury or damage may in any other way arise from or out of the improvements located on the Premises, ;:I(Doyle. 03.06\PARK&REC.27\Special. Events\06. 0525DC. Txlntl. YachtJet. Lease. Renew. 2017. doc Page 9 of 21 out of the use or occupancy of the improvements at the Premises, or of the Premises itself, by Indemnltees or any of them, Indemnitor, or Indemnitor's officers, agents, servants, employees, contractors, patrons, guests, licensees, or invitees. The terms of indemnification are effective whether said injury or damage may result from the sole negligence, contributory negligence, or concurrent negligence of Indemnitees, or any of them. Lessee covenants and agrees that it shall investigate all claims and demands, attend to their settlement or other disposition, defend all actions based thereon with counsel satisfactory to Indemn/tees, and pay all charges of attorneys and all other costs and expenses of any kind from any of said liability, damage, loss, claims, demands, or actions. Section 18 Safety Hazards. (A) Lessee shall, upon written notice of an identified safety hazard by the Police Chief, the City's Fire Chief, Director, or Risk Manager, correct the safety hazard(s) within six hours of receipt of the notification or, if a different response time is included in the notification received, within the time frame included in the written notice of safety hazard (8) If Lessee or Lessee's Agent does not correct the safety hazard(s) within six hours or the time stated in the notification, as applicable, City may correct, or cause to be corrected, by any means reasonably available, the existing safety hazard and will bill Lessee for the associated cost of correction(s) as an actual and direct expense, in accordance with Section 6 of this Lease, Section 19 Damages to City Property. (A) The Director shall provide Lessee's Agent with a list of damages, if any, to City property located on the Premises within two (2) working days after the close of the Event lessee shall restore all items on that list to their condition prior to the Event, to the satisfaction of the City's Director of Engineering, within three (3) working days of receipt of the list. (8) If Lessee fails to restore all items on the list, the Director may do so, or may cause the same to be done. and will bill Lessee for the restoration as an actual and direct cost as set out in Section 6 of this Lease, (C) Lessee or Lessees Agent shall, upon conclusion of the Event, fill and compact all holes in grass areas of the Premises made by Lessee or any entity or person participating in the Event. The Director shall approve the use and type of fill material prior to filling by lessee. Any subsidence within the Premises must be additionally filled by Lessee or Lessee's Agent. ::\(Doyle,03,06\PARK&AEC.27\SpeciaLEventsI06.0525DC. T ..:1 ntl , YachWel Lease.Renew,2017.doc Page 10 of 21 Section 20 Pavement, Curbs, Sidewalks, and Seawall. Any work that creates holes or other changes to the pavement, curbs, sidewalks, or Seawall requires the prior written approval of the Director and the City's Director of Engineering Services before the work is perfonned; provided however, that no approval shall be given if the work will require subsequent repairs by the City Section 21 Permits. (A) Lessee shall obtain, and require that all vendors obtain, all permits applicable to the Event which may include, but are not limited to, the following: (1) a City-County Health Department permit for each booth selling food and all associated permits for food handling (2) a Promotional Event Zoning Pennit and a Temporary Structure Event Permit with a Certificate of Occupancy from the City's Building Inspections Department; (3) a Street Closure Pennit from the City's Traffic Engineering Department; (4) a Special Event Alcohol Permit from the City's Park & Recreation Department; (5) a Solicitation Permit from the City's Collection Department; (6) a Regatta and/or Marina Event Permit, as mandated by 33 U.S.C. Section 100, as amended, from the City's Marina Superintendent; and (7) a Helicopter LandinglTaking Off Permit from the CIty's Airport Manager (8) Lessee must also obtain permission from the U.S. Coast Guard for use of the navigable waterways prior to the Event. (C) Lessee or Lessee's Agent must notify the Director, at least two weeks prior to the Event, of any special conditions imposed by any permitting agency or the U.S. Coast Guard upon Lessee. in relation to the Event. Section 22 Cleanup. Lessee shall require all food and beverage vendors to clean a designated zone adjacent to their respective booths at regularly scheduled intervals during the Event. Lessee may designate the zone, but it will not be less than 10 feet by 20 feet in the immediate area around each food and beverage booth. IA) The clean-up must be performed hourly and immediately after closing the Event each day. All trash cleaned up must be properly deposited in trash bags provided by Lessee and taken to a location designated by Lessee. (8) Lessee may hire and work its own clean-up crew during and after the Event. If the Director detennines that additional clean-up is necessary, Director will give Lessee or Lessee's Agent two (2) hours notice to increase services and if, after the ::\(Doyfe. 03.06IPARK&REC.27\Speciai. EventslOB. 0525DC. T xintl. YachtJet Lease. Renew.2017.doc Page 11 of 21 expiration of the response time, the work remains unsatisfactory, the Director may authorize the use of City workers, and the cost for the labor provided by the City's clean-up workers shall be billed to Lessee as an actual and direct cost pursuant to Section 6 of this Lease. Section 23 Storm Water Inlet Screens. Lessee shall, at its sole cost and expense, install screens, approved by the City's Storm Water Utility Division, across all storm water inlets on the Peoples Street T -Head and within any closed streets in the Premises prior to the beginning of the exclusive use period of this Lease. Lessee shall ensure that drainage is not blocked or impeded by the placement of the screens. Lessee shall remove the screens within the non-exclusive use period after the close of the Event. However, Lessee must remove screens (along with any trash that has accumulated over the screens) immediately if heavy rain is imminent, or upon the direction of the Stormwater Superintendent or designee. Section 24 Construction. (A) The construction work for displays, stages, electrical, etc., within the Premises or adjacent closed streets shall be conducted in accordance with the City's building codes and restrictions. (8) Construction requested by Lessee that can be foreseen by City to cause damage shall only be authorized if (1) Lessee provides the Director with written assurance, submitted prior to the construction being performed, that Lessee agrees to remedy said damage in accordance with Section 19 of this Lease; and (2) the Director pre- approves the construction in writing. Section 25 Temporary Buildings. Lessee must receive prior written approval from the Director to place any temporary buildings on the physical ground of the Premises. Otherwise, all temporary buildings moved onto the Premises for the Event shall be placed and must remain on trailers to promote expeditious removal. Section 26 Electrical & Water Services. Electrical and water service may not be provided on or at all parts of the Premises. Lessee must apply for and secure a Temporary Promotional Event Permit from the City's Building Inspection Division in order to install electrical service for the Event. Furthermore, a Certificate of Occupancy must be signed by the proper inspectors to have all temporary services, such as food, electrical, plumbing, tents and structures, inspected and approved. It is the responsibility of Lessee to call each inspector for an appointment to inspect and obtain approval for each temporary service prior to the commencement of the Event. Section 27 Permissible Vendor Location Markings. No paint or semi-permanent markings will be permitted that obliterate or deface any pavement markings, street curb markings or signs heretofore existing for the guidance of motor vehicles or pedestrians. Chalk or tape markings may be used to pre-mark locations on the sidewalk or street. Painted markings will only be permitted in grassy areas with the prior written approval of the Director :;:I(Doyle.03.06\PARK&REC.27\SpeclaI.Evenls\06 0525DC. T dntl. YachtJet. Lease. Renew.2017. doc Page 12 of 21 Section 28 Dispute Resolution. The City and Lessee agree that any disputes which may arise between them concerning this Lease, such as determining the amount of damage to City property occurring as a result of the Event, must be submitted for determination and resolution, first to the Director, and thereafter by right of appeal to the City Manager. The decision of the City Manager may be appealed to the City Council by giving written notice of appeal to the City Secretary within ten (10) days after the written decision of the City Manager has been received by Lessee. In the event of an appeal, the decision of the City Council will be final. This Lease in no way waives lessee's right to seek other legal remedies during the appeal process. Section 29 Emergency Vehicle Lanes. Lessee shall, at all times during the Event and non-exclusive use periods, maintain emergency vehicle lanes upon the Premises as may be designated by the City's Fire Chief. Lessee must ensure that all emergency vehicle lanes are kept clear of all obstructions. Section 30 Fence. Lessee may provide, at its sole expense, a temporary six foot (6') chain link fence, with gates for access as shown on Exhibit A. The fence will help improve security, crowd control, litter control, and keep bicycles, skateboards, animals, and personal coolers out of the Event area. Section 31 Admission Fee. Lessee may charge an admission fee within the fenced portion of the Premises as shown on Exhibit A. Section 32 Volunteers. Lessee must require all volunteers who will participate in the Event to sign an accident waiver form, which will be maintained on file with Lessee. The accident waiver form used by Lessee shall be reviewed by the Risk Manager and approved by the City Attorney at least two (2) weeks prior to the Event. Section 33 Assignment. Lessee may not assign or transfer this Lease nor sublease the whole or any part of the Premises without the prior written consent of the City Council. Section 34 Breach. Any breach by Lessee of any covenant or condition contained in this lease entitles the City to terminate this Lease without notice or demand of any kind, notwithstanding any license or permit issued by the City, and no forbearance by the City of any prior breach by Lessee is a waiver by or estoppel against the City. Section 35 Right of Lessee to Use Public Streets. Lessee acknowledges that the control and use of public streets is declared to be inalienable by the City, and, except for the use privilege granted in this document, this Lease does not confer any right, title, or interest in the public property to Lessee Section 36 Right of Lessee to Use Public Parks. Lessee acknowledges that the control and use of public parks is declared to be inalienable by the City, and, except for the use privilege granted in this document, this Lease does not confer any right, title, or Interest in the public property to Lessee. ::1(000e.03 .06\PARK&REC.27\SpeclaI.EventsI060525DC T xlnfl. YachtJet Lease.Renew.2017 doc Page 13 of 21 Section 37 Not Partnership or Joint Venture. This Lease may not be construed as or deemed by the parties to be a partnership, joint venture, or any other relationship which requires the City to co-sponsor or incur any liability, expense, or responsibility for the conduct of the Event or associated activities. Payments received from Lessee by the City are compensation for the provision of the City services, as described in this Lease, and for granting Lessee the right to use public property for the limited purpose described Section 38 Agreement between Parties. This Lease is between the City and Lessee for the purpose of described herein and is not for the benefit of any third party or individual. Section 39 City Services Subject to Appropriation. Lessee recognizes that the services agreed to be provided by the City, pursuant to this Lease, are subject to the City's annual budget approval and appropriation process. The continuation of any contract after the close of any fiscal year of the City, which fiscal year ends on July 31 of each year. is subject to appropriations and budget approval. The City does not represent that the expenditures required by the City for the provision of services required by this Lease will be adopted by future City Councils, said determination being within the sole discretion of the City Council at the time of adoption of each fiscal year budget. If the expenditures required by the City for the provision of services required by this Lease are not adopted for the upcoming applicable fiscal year, then City may terminate this Lease, without recourse by Lessee, only at the end of the current applicable fiscal year. Section 40 Compliance with Laws (A) Lessee must comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances which may be applicable to its operation at the Premises and its performance under this Lease including, without limitation, compliance with the Americans with Disabilities Act, as amended. All compliance required by Lessee under this section shall be at Lessee's sole expense and cost. This Lease IS also subject to applicable provisions of the City Charter. (8) If any action or proceeding is brought to enforce compliance with this Lease, orfor failure to observe any of the covenants of this Lease, Lessee must pay the City the sum that a court of competent jurisdiction may adjudge reasonable as attorney's fees in said action or proceeding, or in the event of an appeal as allowed by an appellate court, if a judgment is rendered in favor of the City. Section 41 Interpretation; Venue. This Lease will be interpreted according to the Texas laws which govern the interpretation of contracts. The parties agree that venue lies in Nueces County, Texas, where this Lease was entered into and will be performed. Section 42 Non-discrimination. Lessee warrants that they are and will continue to be an Equal Opportunity Employer. Lessee hereby covenants that all of its employees, participants, invitees, guests, and members of the public shall be treated equally without ::::\(Doyle.03.06\PARK&REC.27\SpeciaI.EvBnts\06. 0525DC. T ~lnU. YachWet. LBase.RenBw.2017. doc Page 14 of 21 regard to or because of race, color, creed, national origin, ethnicity, sex, disability, or age and, specifically regarding the employer-employee relationship, in compliance with all Federal and State laws prohibiting discrimination in employment. Section 43 Force Majeure. No party to this Lease will be liable for failures and delays in performance due to any cause or circumstance beyond their control including, without limitation, any failures or delays in performance caused by strikes, lock outs, fires, acts of God or the public enemy, common carrier, severe inclement weather, riots or interference by civil or military authorities. The rights and obligations of the parties will be temporarily suspended during this period to the extent performance is reasonably affected Section 44 Survival of Terms. Termination or expiration of this Lease, for any reason, shall not release either party from any liabilities or obligations set forth in this Lease that (a) the parties have expressly agreed shall survive the termination or expiration, or (b) remain to be performed or by their nature would be intended to be applicable following the termination or expiration. Section 45 Construction of Ambiguities. The parties expressly agree that they have each independently read and understood this Lease. Any ambiguities in this Lease shaN not be construed against the drafter. Section 46 Captions. The captions employed in this Lease are for convenience only and do not in any way limit or amplify the terms or provisions hereof. Section 47 Entirety Clause. This Lease and the incorporated and attached Exhibits constitute the entire agreement between the City and Lessee for the use granted. All other promises and representations, oral or otherwise, unless contained in this Lease, are expressly revoked, as the parties intend to provide for a complete understanding within the provisions of this Lease and its Exhibits of the terms, conditions, promises, and covenants relating to Lessee's operations and the Premises to be used in the operations that are the subject of this Lease. Section 48 Severability. It is the definite intent of the parties to this Lease that every section, paragraph, subdivision, clause, provision, phrase, or word hereof be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, provision, phrase, or word of this Lease or the application hereof to any person or circumstance is, to any extent, held illegal, invalid, or unenforceable under present or future law or by a final judgment of a court of competent jurisdiction, then the remainder of this Lease, or the application of said term or proviSion to persons or circumstances other than those as to which it is held illegal, invalid, or unenforceable, will not be affected hereby. To the extent that any clause or provision is held illegal, invalid, or unenforceable under present or future law effective during the term of this Lease, then the remainder of this Lease is not affected thereby; and in lieu of each illegal, invalid, or unenforceable clause or provision, a clause or provision, as similar in terms to the illegal, invalid, or ~:\(Doyle 03,06\PARK&AEC ,27\SpeciaI.EventsI06, 0525DC, Txlntl, YachtJet Lease,Renew, 2017. doc Page 15 of 21 unenforceable clause or provision as may be possible and be legal, valid, and enforceable, will be added to this Lease automatically. Section 49 Marina Sale or Lease; Lease Assignment Subject to Council Approval. If the Marina is sold or leased to another operator, the operator shall be bound by all provisions of this Lease. Under Section 4 of Article IX of the City Charter, "No franchise or lease of property of the City shall be transferred by the holder [Lessee] thereof except with the approval of the Council expressed by ordinance. which approval shall not be unreasonably withheld " ~:\(DoYle.03.06IPARK&REC.27\Special. Evenlsl06. 0525DC. T xlntl. YachlJet Lease. Renew. 20 1 7. doc Page 16 of 21 SIGNED IN DUPLICATE, each of which shall be considered an original, on this the day of___________, 2006. ATTEST: CITY OF CORPUS CHRISTI Armando Chapa, City Secretary George K. Noe, City Manager OVED AS TO LEGAL FORM 25 May 2006 Doyte . Curtis Chief, Administrative Law Section Senior Assistant City Attorney For City Attorney STATE OF TEXAS S S COWNTY OF NUECES S This instrument was acknowledged before me on . ' 2006, by George K. Noe, or his designee. _ . City Manager of the City of Corpus Christi, a Texas home-rule municipal corporation, on behalf of said corporation. Notary Public, State of Texas Printed name: Commission expires:__ ;:\(Doyle. 03.06IPARK&REC.27\SpeciaI.EventsI06. 0525DC. T xlntl. YachWet.Lease. Renew.2017 .doc -- Page 17 of 21 LESSEE: MMD COMMUNICATIONS Signature: __________. Printed Name: Peter Bryant Title: President Date STATE OF FLORIDA ~ ~ COUNTY OF ____~ This instrument was acknowledged before me on , 2006, by Peter Bryant, President of MMD Communications, a Florida corporation, on behalf of said corporation. Notary Public, State of Florida Printed name: Commission expires:.m C:\(Doyle. 03.06IPARKMEC.27\SpeclaI.EvenlsI06.0525DC. T xlntl. YachlJet. Lease.Renew.2017. doc Page 18 of 21 EXHIBIT D TEXAS INTERNATIONAL YACHT & JET PLANE SHOW YEAR NON-EXCLUSIVE USE PERIODS 2007 12:01 p.m. Monday, Apr. 23, 2007 thru 6:00 p.m. Monday, Apr 30.2007 2008-12 12:01 p.m. next to last Monday in Apr. thru 6:00 p.m. last Monday in Apr. 2013-17 12:01 p.m. next to last Monday in Apr. thru 6:00 p.m. last Monday in Apr. ::\(Doyle.03.06\PARK&REC.27\Special.Events\06.0525DC. T~ Inti. YachtJet. Lease.Renew.2017 .doc 4 DAY EXCLUSIVE USE PERIODS 6:00 a.m. Thursday, Apr. 26, 2007 thru 6:00 p.m. Sunday, Apr. 29, 2007 6:00 a.m. Thursday, Apr. thru 6:00 p.m. Sunday, Apr. 6:00 a.m. Thursday, Apr. thru 6:00 p.m. Sunday, Apr. Page 19 of 21 EXHIBIT E INSURANCE REQUIREMENTS A Lessee must not commence work under this Lease until all insurance required herein has been obtained and such Insurance has been approved by the City. The Lessee must not allow any subcontractor to commence work until all similar insurance required of the subcontractor has been obtained. B. Lessee must furnish to the Risk Manager, two (2) copies of Certificates of Insurance. showing the following minimum coverage by insurance company(s) acceptable to the Risk Manager. The City must be named as an additional insured for all liability policies and a blanket waiver of subrogation is required on all applicable policies TYPE OF INSURA NCE MINIMUM INSURANCE COVERAGE n-renewal, material Bodily Injury and Property Damage n all certificates Y including: $1,000,000 COMBINED SINGLE LIMIT s Hazard -~ elling alcohol $1,000,000 COMBINED SINGLE LIMIT .~ d, Non-owned or delivering tents. $500,000 COMBINED SINGLE LIMIT res and AT A MINIMUM, STATUTORY LIMITS of $20,000 I ~rs $40,000 for BODILY INJURY & $15,000 for PROPERTY DAMAGE -- -_._._._. Required if Lessee employs any person other than himself/herself: WHICH COMPLIES WITH THE TEXAS WORKERSD COMPENSATION ACT AND PARAGRAPH" OF THIS EXHIBIT $100,000 ERS $5,000 MEDICAL PAYMENTS per PERSON $10,000 DEATH or DISMEMBERMENT per PERSON --.-..".--...-- -.- ._~ 30-Day Notice of Cancellation, no change or termination required 0 COMMEIltCIAL GENERAL L1ABILlT 1 . Commercial Form 2. Prermses - Operations 3. Productsl Completed Operation 4. Contractual Liability 5. BroaClt Form Property Damage 6. Independent Contractors 7. Persooallnjury LIQUOR LIABILITY 1 . Vendors providing andl or s AUTOMOBILE LIABILITY -- Owne rented vehicles 1 . Contractors & Subcontractors stages, bleachers. temporary structu other large items 2. Lessee workers and voluntef WORKERS' COMPENSATION EMPLOYERS' LIABILITY ACCIDENT POLICY FOR VOLUNTE I I L--____ C. In the event of accidents of any kind, Lessee must furnish the Risk Manager with copies of all reports of such accidents within ten (10) days of the accident International Yacht & Jet Plane Show ins. req. 12-16-05ep Risk Mgmt C:\(Doyle.03.06\PARKaREC.27\Special. EventslOe 0525DC. T xlntl. YachtJet. Lease. Renew.2017 .doc Page 20 of 21 II ADDITIONAL REQUIREMENTS A. Lessee must obtain workers' compensation coverage through a licensed insurance company obtained in accordance with Texas law. The contract for coverage must be written on a polley and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in an amount sufficient to ensure that all workers' compensation obligations incurred by the Lessee will be promptly met. B Certificate of Insurance · The City of Corpus Christi must be named as an additional insured on the liability coverage, Compensation coverage and a blanket waiver of subrogation is required on all applicable policies. · If your insurance company uses the standard ACORD form, the cancellation clause (bottom right) must be amended by adding the wording "changed or" between "be" and "canceled", and deleting the words, "endeavor to" and deleting the wording after "left", In lieu of modification of the ACORD form, separate policy endorsements addressing the same substantive requirements are mandatory. · The name of the event, including exact dates including move-in and move out dates shall be shown under the Description of Operationsl Locations / Vehicles/ Special Items · At a minimum, a 30-day written notice to the Risk Manager and Parks and Recreation Director of material change, non-renewal, termination or cancellation is required. C If the Certificate of Insurance does not show on its face the existence of the coverage required by items 1.B (1 H1), an authOrized representative of the insurance company must include a letter specifically stating whether items 1.8. (1 )-(7) are included or excluded. International Yacht & Jet Plane Show ins. req. 12-16-05ep Risk Mgmt ;:\(Doyle.03.06\PARK&REC.27\S pecial.Events\06. 0525DC. Tx Inti. YachtJet Lease .Rer1ew.20 17.doc Page 21 of 21 Exhibit F Tha following May 24, 2006 e-mail from Peter Bryant to Doyle Curtis shall be used in defining "Net Profits" as used in this Lease: >>> "Peter Bryant" <bvanzp@bellsouth.net> OS/24/06 5:28:51 PM >>> 'Dear Doyle, The following is my [Peter Bryant's] interpretation of net profit for purposes of the contracts for the boat aAG- aircraft show. [Changes shown in red font are proposed changes by Doyle Curtis.! Gross revenue is the total amount of revenue generated from slip sales, exhibit booth sales, hard standing area space sales, ramp space,hangaf space sales, sponsorship sales, concession sales, ticket sales. etc. Gross profit is equal to gross revenue minus the cost to generate this revenue ie commissions and salaries Net profit is equal to gross profit minus after the dedlJGt~all other costs associated with the staging of the event ie tent rental, salaries. telephone, hotel costs, catering costs ate I would have no problem with establishing a base figure of $25,000 or 10% of net profit, whichever is greater Please give me a call With best regards Peter Bryant Texas International Boat Show" ::I(Doyle.03.06\PARK&REC.27\Special.Events\060525DC. T <Inti. Y achtJet Lease.Renew.2017. doc Page 1 of 2 ORDINANCE AUTHORIZING CITY MANAGER, OR DESIGNEE, TO EXECUTE A LEASE AGREEMENT WITH PETER BRYANT (MMD COMMUNICATIONS) FOR A TERM OF 8 DAYS IN APRIL, 2007, FOR THE TEXAS INTERNATIONAL YACHT & JET PLANE SHOW AT PEOPLES ST. T-HEAD; PROVIDING TWO 5 YEAR RENEWALS UPON CITY MANAGER, OR DESIGNEE, FINDING SHOW SUCCESSFUL FOR CITY; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICA TION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. The City Manager, or designee, is authorized to execute a Lease Agreement with Peter Bryant (MMD Communications, a Florida corporation) for a term of 8 days in April, 2007, for the Texas International Yacht & Jet Plane Show at Peoples St. T-head. The Lease Agreement provides for two 5 year renewals (with an 8 day term in April of 2008-12 and 2013-17) upon City Manager, or designee, finding Show successful for City. The Lease Agreement is attached as Exhibit A and a copy is on file with the City Secretary SECTION 2. Under Article IX, Section 3 of the City Charter, this ordinance and the Lease Agreement are effective on the 61 st day after City Council adoption of this ordinance on second and final reading; and the second and final reading of this ordinance is at least twenty eight (28) days after the first reading. Each reading was done at a regular meeting of the City Council. SECTION 3. The City Council intends that every section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be given full force and effect for its purpose. Therefore, jf any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance IS held invalid or unconstitutional by final judgment of a court of competent jurisdiction, that judgment shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this ordinance SECTION 4. Publication shall be made In the official publication of the City of Corpus Christi as required by the City Charter of the City of Corpus Christi. A"S S\..LbyV\;~ CY"\. \=[v~t 'R~~,""S \(Doyle. 03. 06\P ARK&REC 27\SpecialEvents\06 0404DC. TxlntJ. YachtJet. Lease Renew.2017.0rd.doc Page 1 of 19 2007 TEXAS INTERNATIONAL YACHT & JET PLANE SHOW LEASE AGREEMENT (With Two 5 Yr Renewals: 2008.12 & 2013.17) BETWEEN THE CITY OF CORPUS CHRISTI AND MMD COMMUNICATIONS THE STATE OF TEXAS ~ ~ KNOW ALL PERSONS BY THESE PRESENTS: ~ COUNTY OF NUECES This lease agreement ("Lease") is entered into by and between the City of Corpus Christi, a Texas home rule municipal corporation ("City"), acting through its duly authorized City Manager or his designee ("City Manager"), and MMD Communications ("Lessee"), a Florida corporation. NOW, THEREFORE, City and Lessee, in consideration of the mutual promises and covenants contained herein, agree as follows: Section 1 Definitions. (A) City means the City of Corpus Christi, Nueces County, Texas, a home rule municipal corporation (8) City Attorney means the City's Attorney or the City Attorney's designee (C) City Council means the City's City Council (D) City Manager means the City's Manager or the City Manager's designee (E) Code means the City's Code of Ordinances, as amended (F) Director means the City's Director of Parks and Recreation or the Director's designee (G) Event means the Texas International Yacht & Jet Plane Show conducted and sponsored by Lessee. (H) Lease means this agreement and all Exhibits and attachments (I) Lessee means MMD Communications ("Lessee"), a Florida corporation organizing and managing the annual Texas International Yacht & Jet Plane Show (J) Leasee's Agent means a duly authorized representative of MMD Communications \(Ooyle.03.05\PARK&RIIC.27\SpeclaLEvenlsl06.01 04DC. TxlnU. YachtJet.Lease.Renew.2017.doc Page 3 of 19 separate agreement, that Is executed between the City and Lessee, If this use is determined to be necessary by Lessee. Ie) Airport Premises; Separate lease(s) Note: This lease does not Include the facilities at the Corpus Christi International Airport (" Airport") for the Static Aircraft/Jet Plane Show and the Classic Cars Show. Use of any of these facilities will be covered under one or more separate agreements, executed between the Lessee and City and/or Tenants at the Airport, if this use is detennined to be necessary by Lessee. (D) Street closure Areas The street closure process, as outlined by the Traffic Engineer and further described in this Lease, will govern all street closures. Street closure areas are shown in the attached Exhibit B. Section 4 Other Areas; Other Use of Premises. (A) Requests by Lessee for use of additional City-owned areas requires prior written approval from the Director. (8) No concession stand, ride, or other apparatus connected with the Event may be placed in or on the grass or shrubbery areas within the Premises along Shoreline Drive without the prior written permission of the Director. Section 5 Event Layout Diagram. At least two weeks prior to the Event, Lessee or Lessee's Agent must provide the Director with a detailed diagram (Exhibit C) showing the final Event layout and including all related activities. Layout of the Event is subject to the approval of the Director. Section 6 Fees; City Receives 10% of Profits In Lieu of Marina Rental Fees. I A) In consideration of granting Lessee use of the Premises, Lessee must pay City a use fee of $100. The fee is due and payable upon the City Council's final approval of this Lease. This fee is in addition to any other use and permit fees required in this Lease, by City ordinance, or State law. (8) Lessee must pay to Marina rental fees of $00.01 per square foot per day for all Marina areas used on the Peoples Street T -Head (excluding areas covered by City leases to vendors). Also, Lessee must pay to Marina rental fees for in-water boat storage of exhibitor, patrol, medical, and media boats. The rental fees for in-water boat storage will be controlled and governed by separately executed agreements between Lessee and the Marina Superintendent. The Marina rental fees in this Section 6 (8) will be billed as an actual and direct cost under Section 7 of this Lease. However, in lieu of paying these Marina rental fees, Lessee shall pay to Marina 10% of the profits from all events staged on the Premises, including but not limited to profits from entry fees, admission fees, concessions, and exhibitor contracts (including, but not limited to, boat slip fees). :\(Doyle.03.05\PARK&REC.27\Speclal.Events\06.01 04DC.Txlntt. YachtJet. Lease.Renew.2Q17.doc Page 5 of 19 (3) Security and Crowd & Traffic Control: Costs of City Police OffIcers provided for security, crowd control, traffic control, and off-site traffic control, at applicable City rates for the Police Officers assigned, and costs for additional directional signage, barricades, and cones or other supplemental traffic control devices, as well as the associated set-up costs, that are provided by the City. The Police Chief shall determine the number of officers needed for the Event, including during set-up and take down preparations, in the interest of public safety; and (4) Costs for all Marina utilities, including but not limited to electricity, water, and sewage disposal services, used by exhibitor boats at Marina and not paid for by exhibitors before Event is over. (5) Costs for all Marina utilities, including but not limited to electricity, water, and sewage disposal services, used by Lessee or Lessee's agents at Marina and not paid for by Lessee or Lessee's agents before Event is over. (6) Costs for any other services requested by Lessee or Lessee's Agent and provided by the City. Section 8 Emergency Contact Numbers; Notice. (A) Lessee shall provide emergency contact numbers to the City's Marina Superintendent and the Director at least one week in advance of the Event. (B) All notices, demands, requests, or replies provided for or permitted, under this Lease, by either party must be in writing and must be delivered by one of the following methods: (1) by personal delivery; (2) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid; (3) by prepaid telegram; (4) by deposit with an overnight express delivery service, for which service has been prepaid; or, (5) by fax transmission. Notice deposited with the United States Postal Service in the manner described above will be deemed effective two (2) business days after deposit with the United States Postal Service. Notice by telegram or overnight express delivery service will be deemed effective one (1) business day after transmission to the telegraph company or overnight express carrier. Notice by fax will be deemed effective upon transmission with proof of delivery to the receiving party. All these communications must be made only to the following: .If to the City: Director of Parks and Recreation If to the Lessee: Peter Bryant MMD Communications City of Corpus Christi 1201 Leopard Street, 78401 P.O. Box 9277, 78469-9277 1801 S. Federal Highway Suite 224 ::\(Doyle.03.05\PARK&AEC.27\SpeclaI.Events\06.01 04DC. Txlntl. YachtJet.Lease. Renew.2017.doc Page 7 of 19 Section 12 Barricades, Traffic Signs. Lessee shall provide, at Its sole cost and expense, for the installation and maintenance of all required barricades, traffic signs, signs to limit public viewing areas, and other traffic control devices for the safe control of vehicular and pedestrian traffic at, and external to, the Premises as set forth in the traffic control plan approved by the Traffic Engineer for the Event. The Traffic Engineer may require Lessee to provide temporary directional signage to the nearby attractions/facilities affected by any street closures and traffic circulation around the Event. Section 13 Premises Signage and Advertising. All on-Premises signage and advertising that Lessee proposes to utilize for the Event must receive the Director's prior written approval, Lessee or Lessee's Agent may request inflatable advertising for only those events that receive national television exposure. Section 14 Rest Rooms; First Aid; Drinking Water. Lessee shall provide functional and sanitary portable restrooms, including restrooms for people with special needs, and first aid stations, with drinking water, in both the viewing area of the Premises and on the Peoples Street T-Head in the Marina. All of the aforementioned items shall be provided throughout the duration of the Event. Section 15 Additional Security. Lessee must separately contract and pay for any additional security, such as daily pre and post-Event public viewing hours and night watch security, that Lessee deems necessary in the crane and patrol boat dock areas. If this security is provided by City's Police Officers, the expense will be billed to Lessee as an actual and direct cost in accordance with Section 6 of this Lease. Section 16 Insurance. (A) Lessee shall secure and maintain, at Lessee's sole expense during the term of this Lease, (1) a Commercial General Liability insurance policy, (2) a Liquor Liability insurance policy, (3) an Automobile Liability insurance policy, (4) an Accident Insurance Policy insuring Volunteers, and (5) Workers' Compensation insurance; all required policies shall have the limits and requirements shown in the attached Exhibit E (B) The Certificate(s) of Insurance must be sent to the Risk Manager at least two (2) weeks prior to the starting date of the Event. The Certificate(s} of Insurance must provide at least thirty (30) days written notice of cancellation, intent to not renew, or material change of any coverage required in Exhibit E. (C) Lessee shall provide copies of all insurance policies to the City Attorney upon the City Manager's written request. (0) Lessee shall require that any vendor that sells alcoholic beverages at the Event furnish proof of Liquor Liability insurance with the limits and requirements set out in Exhibit E, The Certificate(s) of Insurance must be sent to the Risk Manager a1 least two (2) weeks prior to the starting date of the Event and must provide that the ::\(Doyte,03,05\PARK&REC.271SpeclaI.Events\o6.0104DC, Txlntl. YachtJet. Lease,Renew,2017,doc Page 9 of 19 atlend to their settlement or other disposition, defend all actions blfBed thereon with counsel satisfactory to Indemnltees, and pay all cIMrges of attorneys and all other costs and expenses of any kind from any of said liability, damage, loss, claims, demands, or actions. Section 18 Safety Hazards. (A) Lessee shall, upon written notice of an identified safety hazard by the Police Chief, the City's Fire Chief, Director, or Risk Manager, correct the safety hazard(s) within six hours of receipt of the notification or, if a different response time is included in the notification received, within the time frame included in the written notice of safety hazard. (B) If Lessee or Lessee's Agent does not correct the safety hazard(s) within six hours or the time stated in the notification, as applicable, City may correct, or cause to be corrected, by any means reasonably available, the existing safety hazard and will bill Lessee for the associated cost of correction(s) as an actual and direct expense, in accordance with Section 6 of this Lease. Section 19 Damages to City Property. (A) The Director shall provide Lessee's Agent with a list of damages, if any, to City property located on the Premises within two (2) working days after the close of the Event. Lessee shall restore all items on that list to their condition prior to the Event, to the satisfactIon of the City's Director of Engineering, within three (3) working days of receipt of the list. (B) If Lessee fails to restore all items on the list, the Director may do so, or may cause the same to be done, and will bill Lessee for the restoration as an actual and direct cost, as set out in Section 6 of this Lease. (C) Lessee or Lessee's Agent shall, upon conclusion of the Event, fill and compact all holes in grass areas of the Premises made by Lessee or any entity or person participating in the Event. The Director shall approve the use and type of fill material prior to filling by Lessee. Any subsidence within the Premises must be additionally filled by Lessee or Lessee's Agent. Seeton 20 Pavement, Curbs, Sidewalks, and Seawall. Any work that creates holes or other changes to the pavement, curbs, sidewalks, or Seawall requires the prior written approval of the Director and the City's Director of Engineering Services before the work is performed; provided however, that no approval shall be given if the work will require subsequent repairs by the City Section 21 Permits. (A) lessee shall obtain, and require that all vendors obtain. all permits applicable to the Event which may include, but are not limited to, the following: ::\(Doyle.03.05\PARK&AEC.271Speclal.Events\06.0 104DC. Txlnll. YachWet. Lease.Renew.2017.doc Page 11 of 19 However. lessee must remove screens (along with any trash that has accumulated over the screens) immediately if heavy rain is imminent, or upon the directIon of the Stormwater Superintendent or designee. Section 24 Construction. (A) The construction work for displays, stages, electrical, etc., within the Premises or adjacent closed streets shall be conducted in accordance with the City's building codes and restrictions. (B) Construction requested by Lessee that can be foreseen by City to cause damage shall only be authorized if (1) Lessee provides the Director with written assurance, submitted prior to the construction being perlormed, that Lessee agrees to remedy said damage in accordance with Section 19 of this Lease; and (2) the Director pre- approves the construction in writing. Seotlon 25 Temporary Buildings. Lessee must receive prior written approval from the Director to place any temporary buildings on the physical ground of the Premises. Otherwise, all temporary buildings moved onto the Premises for the Event shall be placed and must remain on trailers to promote expeditious removal. Section 26 Electrical & Water Services. Electrical and water service may not be provided on or at all parts of the Premises. Lessee must apply for and secure a Temporary Promotional Event Permit from the City's Building Inspection Division in order to install electrical service for the Event. Furthermore. a Certificate of Occupancy must be signed by the proper inspectors to have all temporary services, such as food. electrical, plumbing, tents and structures, inspected and approved. It is the responsibility of Lessee to call each inspector for an appointment to inspect and obtain approval for each temporary service prior to the commencement of the Event. Section 27 Permissible Vendor location Markings. No paint or semi-permanent markings will be permitted that obliterate or deface any pavement markings, street curb martlngs or signs heretofore existing for the guidance of motor vehicles or pedestrians. Chalk or tape markings may be used to pre-mark locations on the sidewalk or street. Painted markings will only be permitted in grassy areas with the prior written approval of the Director Section 28 Dispute Resolution. The City and Lessee agree that any disputes which may arise between them concerning this Lease, such as determining the amount of damage to City property occurring as a result of the Event, must be submitted for determination and resolution, first to the Director, and thereafter by right of appeal to the City Manager. The decision of the City Manager may be appealed to the City Council by giving written notice of appeal to the City Secretary within ten (10) days after the written decision of the City Manager has been received by Lessee. In the event of an appeal, the decision of the City Council will be final. This Lease in no way waives Lessee's right to seek other legal remedies during the appeal process. ::\(Doyte.03.05\PARK&REC.27\Speclal.EventslO6,0104DC. Txlnll. YachtJet.Lease,Renew.2017.doc Page 13 of 19 Section 39 City Service. SubJect to Appropriation. Lessee recognizes that the services agreed to be provided by the City, pursuant to this Lease, are subject to the City's annual budget approval and appropriation process. The continuation of any contract after the close of any fiscal year of the City, which fiscal year ends on July 31 of each year, is subject to appropriations and budget approval. The City does not represent that the expenditures required by the City for the provision of services required by this Lease will be adopted by future City Councils, said determination being within the sole discretion of the City Council at the time of adoption of each fiscal year budget. If the expenditures required by the City for the provision of services required by this Lease are not adopted for the upcoming applicable fiscal year, then City may terminate this Lease, without recourse by Lessee, only at the end of the current applicable fiscal year Section 40 Compliance with Laws (A) Lessee must comply with all applicable Federal, State, and local government laws, rules, regulations, and ordinances which may be applicable to its operation at the Premises and its performance under this Lease including, without limitation, compliance with the Americans with Disabilities Act, as amended. All compliance required by Lessee under this section shall be at Lessee's sole expense and cost. This Lease is also subject to applicable provisions of the City Charter. (8) If any action or proceeding is brought to enforce compliance with this Lease, or for failure to observe any of the covenants of this Lease, Lessee must pay the City the sum that a court of competent jUrisdiction may adjudge reasonable as attorney's fees in said action or proceeding, or in the event of an appeal as allowed by an appellate court, if a judgment is rendered in favor of the City. Section 41 Interpretation; Venue. This Lease will be interpreted according to the Texas laws which govern the interpretation of contracts. The parties agree that venue lies in Nueces County, Texas, where this Lease was entered into and will be performed. Section 42 Non-dlscrlmination. Lessee warrants that they are and will continue to be an Equal Opportunity Employer. Lessee hereby covenants that all of its employees, participants, Invitees, guests, and members of the public shall be treated equally without regard to or because of race, color, creed, national origin, ethnicity, sex, disability, or age and, specifically regarding the employer-employee relationship, in compliance with all Federal and State laws prohibiting discrimination in employment. Seclon 43 Force Majeure. No party to this Lease will be liable for failures and delays in performance due to any cause or circumstance beyond their control including, without limitation, any failures or delays in performance caused by strikes, lock outs, fires, acts of God or the public enemy, common carrier, severe inclement weather, riots or interference by civil or military authorities. The rights and obligations of the parties will be temporarily suspended during this period to the extent performance is reasonably affected. .:\(Doyle.03.05\PARK&AEC.271SpeclaI.Events\06.01 04DC. Txlntt. YachtJet.Lease.Renew.2017.doc Jar, 05 'J6 01 D5p ,:' e 1: e r B r ::1 a " t 2790433 p.2 Page 15 of 19 SIGNED IN DUPLICATE, each of which shall be considered an origina', on this the ____ day of ________, 2006, ATTEST: CITY OF CORPUS CHRISTI George K. Noe, City Manager Armando Chapa, City Secretary 5 APPROVED AS TO LEGAL FORM A' January 2006 f2C ---. _____ Doyle D. Curtis Chief, Administrative Law Section Senior Assistant City Attorney For City Attorney STATE OF TEXAS ~ ~ COUNTY OF NUECES fi This instrument was acknowledged before me on ,2006, by George K Noe, or his designee, , City Manager of the City of Corpus Christi a Texas home-rule municipal corporation, on behalf of said corporation NoUiuy Public, State of Texas Printed name: Commission expires:__ C:\W1NOOWS\TernpOl'IIY lmame\ FileslConlent IE5\CH2Z8T23106.01 04DC,Txlntl YaChtJeUellSeRenew2017doc Page 17 of 19 EXHIBIT D TEXAS INTERNATIONAL YACHT & JET PLANE SHOW YEAR NON-EXCLUSIVE USE PERIODS 4 DAY EXCLUSIVE USE PERIODS 2007 12:01 p.m. Monday, Apr. 23. 2007 thru 6:00 p.m. Monday, Apr. 30, 2007 6:00 a.m. Thursday, Apr. 26, 2007 thru 6:00 p.m. Sunday, Apr. 29, 2007 2008-12 12:01 p.m. next to last Monday in Apr. 6:00 a.m. Thursday, Apr. thru 6:00 p.m. last Monday in Apr. thru 6:00 p.m. Sunday, Apr. 2013-17 12:01 p.m. next to last Monday in Apr. thru 6:00 p.m. last Monday in Apr. 6:00 a.m. Thursday, Apr. thru 6:00 p.m. Sunday, Apr. :\(Doyle.03.05\PARK&REC.27\SpeclaI.EventsI06.0104DC.Txlnll. YachtJet. Lease.Renew.2017.doc Page 19 of 19 II ADDITIONAL REQUIREMENTS A Lessee must obtain workers' compensation coverage through a licensed insurance company obtained in accordance with Texas law. The contract for coverage must be written on a pOlicy and endorsements approved by the Texas Department of Insurance. The workers' compensation coverage provided must be in an amount sufficient to ensure that all workers' compensation obligations incurred by the Lessee will be promptly met 8 Certificate of Insurance · The City of Corpus Christi must be named as an additional Insured on the liability coverage, Compensation coverage and a blanket waiver of subrogation is required on all applicable policies. · If your insurance company uses the standard ACORD form, the cancellation clause (bottom right) must be amended by adding the wording "changed or" between "be" and "canceled", and deleting the words, "endeavor to" and deleting the wording after "left". In lieu of modification of the ACORD form, separate policy endorsements addressing the same substantive requirements are mandatory · The name of the event, including exact dates including move-in and move out dates shall be shown under the Description of Operations/ Locations / Vehicles/ Special Items . At a minimum, a 30-day written notice to the Risk Manager and Parks and Recreation Director of material change, non-renewal. termination or cancellation is required. r: If the Certificate of Insurance does not show on its face the existence of the coverage required by items 1.8 (1 )-(7), an authorized representative of the insurance company must include a letter specifically stating whether items 1 S. (1 )-(7) are included or excluded. International Yacht & Jet Plane Show ins req. 12-16-05ep Risk Mgmt ;:\(Doyle.03.05\PARK&FEC.27\SpeclaI.EventslO6.01 04DC. Txlntl. YachtJet. Lease. Renew.2017.doc 27 AGENDA MEMORANDUM Date: May 30, 2006 SUBJECT: Interlocal Agreement between the City and the Corpus Christi Independent School District AGENDA ITEMS: Resolution authonzing the City Manager or his designee to execute an Interlocal Agreement with the Corpus Christi Independent School District to locate and jointly operate a branch library on District property next to the Kaffle Middle School. ISSUE: In November, 2004 the voters approved $3.5 million for the construction of a new branch library on the City's far southside. The City has developed an Interlocal Agreement with the Corpus Christi Independent School District to provide for construction of the branch next to the Kaffie Middle School on Brockhampton and for joint operation of the branch by City and District. City staff has met WIth District staff to develop an Interlocal Agreement. The District will lease w the City for fifty (50) years at one dollar ($1) per year land next to Kaffie sufficient for a 12,000 sq n library ninety -one (91 ) parkmg spaces and landscaping area. The Agreement also provides the basis for jomt (I)st shanng. The District will pay a portion of utilities for the full calendar year based on the space it "primarily" uses for school library operations; City will pay District for mowing and other landscaping services as needed. District and City will jointly staff the library and during the school year District staff will work evenings and Sundays to serve the general public. This arrangement is similar to the one on operation at the Janet F. Harte Public Li brary in Flour Bluff Because of support for the District there the library is able to open on Sunday during the ~chool year REQUIRED COUNCIL ACTION. Interlocal agreements requir~' City C"HlllCiI approval. RECOMMENDATION: Staff recommends approval -;/~!k- J-- Herb Canales Director of Libraries Page 1 of 2 RESOLUTION AUTHORIZING CITY MANAGER OR DESIGNEE TO EXECUTE AN INTERLOCAL AGREEMENT WITH THE CORPUS CHRISTI INDEPENDENT SCHOOL DISTRICT TO LOCATE AND JOINTLY OPERATE A BRANCH LIBRARY ON DISTRICT PROPERTY NEXT TO THE KAFFIE MIDDLE SCHOOL. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS THAT: SECTION 1. The City Manager or designee is authorized to execute an Interlocal Agreement with the Corpus Christi Independent School District to locate and jointly operate a branch library on District property next to the Kaffie Middle School. ATTEST: CITY OF CORPUS CHRISTI Henry Garrett Mayor Armando Chapa City Secretary APPROVED 24 May 2006 11/ , fl ~ /"-' &; ~ V~~~ ~ Veronica Ocanas Assistant City Attorney for City Attorney H\lE(;~DIRlVeronlcaO\4 LIBRARY 19\52506 Intlcl Agmt w CCISD branch horary Kaffie Middle SChool doc ~ n It I -I ~ ..... ~ ~ ~ Corpus Christi Independent School District and City of Corpus Christi Intergovernmental Agreement to Operate and Maintain Southslde Library WHEREAS, the voters of Corpus Christi approved a $3.5 million bond issue in November, 2604 to construct, furnish, and equip a new branch library (Library) on the southside; WHEREAS, in the spirit of cooperation, enhancing services and maximizing tax dollars, the Corpus Christi Independent School District (District) and the City of Corpus Christi (City) desire to construct the Library on District property at the Kaffie Middle School (School), 5922 Brockhampton, Corpus Christi, Nueces County, Texas. WHEREAS, City and District desire to cooperate in the operation of the Library to better serve the interests of the taxpayers and general public. NOW, THEREFORE, for and in consideration of the covenants, undertakings and considerations herein stated, City .and District mutually agree as follows: 1 TERM OF LEASE AND 'LEASED PREMISES A For and in consideration of one dollar a year, receipt of which is hereby acknowledged, District hereby leases to City. for a term of fifty (50) years, subject to the other tenns and conditions of this Agreement, the land upon which the City will construct the Library and parking area (Leased Premises; as described Exhibit A, attached hereto, together with the right of ingress and egress thereto. B Lease will be irrevocable so long as building constructed by City on Leased Premises is used as a branch of the City's public library system. If District ceases participation in joint operation of i.ibrary or if District ceases School operations at this site, lease will continue. Additionally, District Wlli continue to grant the rights of ingress and egress even if District ceases participation in joint operation of Library. C City may cease library operations as defined below at the end of District's fiscaf year, but the 1 City will notify the District no later than 120 days prior to the end of the District's fiscal school year. District rnay lease Library from the C::ity for a fee to be agreed upon at such time when City would c:ease operations If the Di~trict does not exercise its option to lease the Library building, the parties agree te entl~r Into negotiations for use of the Library building. District may cease participation in !oint operation at tile end of City's fiscal year. but Distnct shall notify the City no later than 120 days pnor to the end of City's fiscal year Upon terminatIon of Joint operation of Library building, District will retain right to remove District property and the parties agree to enter into negotiations for use of Ihe Library l)uilding Cessation of operations occurs when (i) the Citys or the District's governing body declares that operations at the Library will cease and (ii) the City's or the District's governing body fails to provide funds for Library operations E The City grants the District use of the Brockhampton Park, a city park adjacent to School, for .mysical education classes conducted during school days. For the period of time that the classes are being conducted. the District's use of the Park will be exclusive. 2 lOCATION The Library wil: be built with II I the Leased Premises area identified in attached Exhibit A. The exact location of the Library within the Leased Premises will be subject to approval by the District 3. DESIGN OF LIBRARY A City has exclUSIve authority to select the architect (Architect) for the design of the Library. City will enter into a ProfessIonal Services Contract with Architect for the proper design of the LIbrary Library will be a freestanding structure, not affixed to any District building other than the :onstruction of a canopy by tile City linking the Library to the School B City has the authority to approve plans and specifications for the Library. The District shall 113ve an opportunity to review the plans and specifications and be allowed to provide input prior to full completion of plans The District shall be represented on the City's Library Building Committee 2 by two District employees to be appointed by the Superintendent. This committee serves in an advisory capacity to the City Council City will pay all costs for design of library. 4 LANDSCAPING City will landscape area within Leased Premises. 5 CONSTRUCTION OF LIBRARY A. City has exclusive authority to award contract for construction of the Library. City will enter Into construction contract with contractor for proper construction of library. City will supervise onstructloP 1,1 I II), ar'! Cty wIll pay for all construction (;Osts associatpd with the Libn=IfY City will be responsible for final acceptance of Library City will pay for site preparation costs for the Leased Premises District will guarantee access for construction, deliveries and any future improvements undertaken by City to the Library Building within the Leased Premises. Curbs and cuts for a service drive along the perimeter of the Leased Premises shall be at the discretion and expense of the City. B City will ir Istall exterior lighting within Leased Premises. ( Costs associated with external directional signage will be the responsibility of the City. 6. FURNISHINGS AND EQUIPMENT City will retam rtght to determine Intenor deslglllllcluding furnishings and equipment. City will purchase Initial furnishings for Library. 7 UTILITIES A City will provide all City utility connections B City and District will develop plans for electrical and telecommunications needs. 8 OWNERSHIP OF LIBRARY AND CONTENTS City owns the library. City will name the Library. Each party retains ownership of property it brings into the Library City Will be responsible for insuring the Library City will be responsible for mamtaining and insunng City-owned property located in Library. District will be responsible for maintaining and insuring District-owned property located in Library. May 12, 2006 (2:43PM) 3 9. PERMITTED USES The City will construct a building on Leased Premises within area identified in Exhibit A to be . Jsed as a branch of the City's public library system Any use of said building by City for purposes uther than as a branch of the City> public library system will be subject to written approval by District 10. LIBRARY PARKING AREA AND DRIVEWAY 1'\. City will construct a parking area with ninety-one (91) parking spaces within Leased :)remises nle locatton ot which will be subject to approval by the District Of these ninety-one (91) parking spaces, thirty-four (34) will de dedicated to school use (staff and visitors) during school Dperations District will pay a pro-rata share of routine maintenance based on the numberof spaces Jsed. 8 District and City will enforce designated parking spaces City Nil! provide lighting in parking area. 11. JOINT OPERATION OF LIBRARY C'jv 1"0 ni,:;tn'~t agree to operate !,'brary Library will serve the public and the Distnct 12. PREPARATION OF ANNUAL BUDGETS City and District Will prepare annual budgets for the Library. City and District staff will meet L: descTibecl in Sections '13.1'1, and 1"). and agree on schedules and recommended budgets by April 1 annually. Budgets will be approved on or before the first day of each fiscal year for City and District. B The annual budgets will provide for operating expenses, including, but not limited to, building maintenance cleaning service. utilities, grounds upkeep, parking area maintenance, security, telecommunication services, shared computer system maintenance, joint purchase agreements as nay be agreed to by both parties, staffing. books and other library materials. District and City will <;hare in said costs based on Section 14 herein. ~=" City and District retain right to contract for services for any part of operations for their May 12,2006 '243PM) 4 respective services o City dlld Olstrlci dckrlowledge that this Agreement between them is made pursuant to the Interlocal Cooperalion Act. ~hapter 791, Texas Govelllment Code In accordance with Section !Cl1011{ d)(31 of the Texas Government Code, City and District also each certify that payments each NIII make in accordance with the terms)! ttlis agreement will be made from current revenues wallable to City and District respectively, and any future payments will be subject to appropriations. Payments will be made in a timely manner after notification 13. OPERATING AND MAINTENANCE EXPENSES City and Distnct will share Operating and Maintenance Expenses as follows: A District will share Library staffing responsibilities nights and weekends with City while School is In sessIon excluding District holidays, one hundred eighty-seven (187 days) annually as of this contract date This proVIsion IS subject to change predicated on calendar adopted and incorporated by District E City and Distnct will each pay a portion of the following costs based on the percentage of space prima, !Iv decllcated to school library functiom, Ihe costs to be shared are: utilities, interior cieaning serVice, alarm monltonng, lJPOI) award of the construction contract, City and District will finalize the percentage to be paid by each City will ~lIre or contract for these interior services and t>!1i Districi dlH1ually based (1/1 the agreed to formula District will provide the following exterior services: mowing and grounds upkeep, irrigation system maintenance, removal of graffiti. The same formula as described above will apply to these exterior services. District will hire or contract for these exterior services and bill City annually based on the agreed to formula, e District will provide security during School hours jf District requires security, City will be responsible for providing for security at such other times as City deems necessary. D ( 1 ) The City and the District agree to establish and maintain at least minimum quantitative and qualitative standards regarding collections, staffing, and hours of operation as estabUshed by Texas State Library and Texas Education Agency, May 12, 2006 (2:43PM) 5 (2) District wIll provide an initial library materials budget not less than the current fiscal year upon adoption of Interlocal Agreement City will provide an initial library materials budget not ess than the current fiscal year for a full service branch C'i District agrees to provide an Initial slaffing configuration of a minimum of three (3) full time eqUivalents, comprised of full and part-time employees plus student workers as assigned. City agrees to provide an initial staffing configuration of a minimum of seven (7) full time equivalents, comprised of full and part-time employees. City will staff L !brary jurinq District recess except days designated as holidays by City F City will pay mainten :mce expenses of Library, including, but not limited to, all repairs and modificatIons to Library, plumbing repairs, and electrical repairs. 14. LIBRARY POLICIES i'\ The District acknowledges that City policies currently in effect and as may be adopted or amended from time to time ire enacted solely at the dIscretion of the City. The District further acknowledges that the City s not responsible for the enforcement of District policies. The City acknowledops that the Dlstn ' ~'(! ,,:., iTently in effect '-md 8S may be adopted or amended from trme to time dre Ewacted at 'he discretion of the District The pariies acknowledge that District policies do not apply to the general public B DIslr,ci will De respolslble fOI actions, activities, and behavior of its students and District employees during school hOllrs in accordance with all applicable federal and state laws, District rules and City ordinances. City may refer District students or District employees to District admmjstratioll for action dur, 19 sctloul hours City will !lot act In loco parentis but will take any measures deemed necessary to maintain an enVIronment appropriate to conducting Library activities. City has no responsibility for students during school hours City and District will observe alf appiicable Weapons Laws and City smoking ordinances Thp hours of operation may vary from those normally observed either by public or school libraries. However, notwithstanding policies developed regarding the library, City will establish May 12, 2006 i2:43PM, 6 hours of operation and opening and closing procedures, with recommendations from District. DIstrict will be granted access to Library during school hours The City reserves the right te select library matenals consistent with its missions and oles The Dlstnct reserves the right to select library materials consistent with its missions and roles. Each party will be responsible for purchasing its own library materials. Neither party can direct what materials are purchased or retained by the other party. District will house in Library Its bibliographic holdings. including books, periodicals. and other library materials and will participate in the shared automated iilltctfv system which its high schools participate in, known as LiNCe (Library Information Network of Corpus Christl). F City and Distnct will Jointly staff the Library Any District employee assigned to work in the Library will possess the necessary education and background and will remain employees of District for all purposes. Any City employee assigned to work in the Library will possess the necessary education and background and will remain employees of City for all purposes. City and District employees will assist all patrons while on duty. 15 PURCHASE OF LIBRARY If Distnct desires to purchase the Library, District will give City written notice of its interest in purchasing the Library If City agrees. purchase will be subject to a mutually agreed purchase price. 16 PURCHASE OF LAND AND RIGHT OF FIRST REFUSAL l\ If City desires to purchase the Leased Premises. City will give District written notice of its Interest in purchasing the Leased Premises If District agrees, purchase will be subject to mutually agreed purchase price B If Distnct. during the lease term. deSires to sell all or any portion of the Leased Premises and/or areas of ingress/egress, City will have the right of first refusal to meet any bona fide offer :}i sale on the same terms of the offer 17 NOTICE Notice may be given by hand delivery or certified mail. postage prepaid, and is deemed May 12, 2006 (243PM) 7 received on the day hand delivered or on the third day after deposit if sent certified mail. Notice will be sent as follow~ IFiOCIT( City of Corpus Omsli Attention: Director ot LibranE'~ POBox 9277 Corpus Chnstl 1 exas 78469-9271 IF TO DISTRICT Corpus Christi Independent SdlOOI District Attn Superintendent PO Box 110 Corpus Christi, Texas 78403-0110 t8 RESOLUTION OF DIFFERENCES 'l. The following matters are no! ~;utJJeLt lu t!-i(; . esolutlon process identified herein: ( 1 ) Location of the Leased Premises. (2\ Matters concerning the design construction, location and other matters covered by this Agreement (3\ Matters which Impinge on the City's miSSion and role as a public library (4) Any matter which IS In c;(JI'flic vVltll this Agreement B Mattt"rs that cannot be resolved Informally al the Library between City and District ernpj.'vees Nil! bE ~~l ;jRi' !"P '!!()vvlnq pu)cess (1 \ Level One District Schoo Prlllclpal and the City Branch Manager. (2 \ L p\lel TV/n Distnc Coordinator cf Library SerJices and the City Director of Libraries (3 I Level Three Dlstnct Superintendent and City Manager (4 Level Four Dlstnct Trustees and City Councli or their appointees. (5 If ttle matter cannot be res!)lvprl hy the plT1cess described above, then either party shall be entitled to pursue ihe matter through the legal processes 19 REMEDIES If nlBre is a '.'reaC!1 01 thlsA~1reer~lellt by City or Distnct. the party not in breach will have against the other party all remedies kr breach of contract The prevailing party will be entitled to recover reasonable attorney fees This Agreement is for the exclusive benefit of the City and District May 12,2006 i243PM) 8 and in no way may be construed to be for the benefit of any third party. 20 AMENDMENT This Agreement rnay be amended in writln~l by c1uly i1uthorized officials of City and District Modifications which do not change the essential scope and purpose of this Agreement may be approved IJ'y the City Marlager or designee on behalf of the City and the Superintendent or designee on behalf at District 21 AUTHORITY OF PARTIES Each party by Its sign "lture hel eo I' ';t8tes !l'At the [lerson signing is a duly authorized official of that party and that all (lcb ; tecessary to authorize this Agreement have been taken. 22 SEVERABILITY If any covenant condition. or provision in thiS .Agreement is held to be invalid by any court of competent Jurisdiction the mvalidity of such covenant, condition, or provision in no way affects any oHler covenant, condition or provision herem contained 23, FORCE MAJEURE Neither City lior District are in breach of this Agreement by reason at failure to perform any 01 I.:; nbligations hereunder If, wllile and 10 tlie extenlllldl s\Jci\ failure is due to strikes. boycotts, labor disputes, em bargoes, shortages of materials, acts of God, acts of the public enemy, acts of superior governmental authOrity, weather conditions. floods riots, rebellion, sabotage or any other Circumstances for which it is not responsible and whiCh are not within its control. 24, INCORPORATION OF EXHIBITS All exhibits referred to in this Agreement are intended to be and are hereby specifically made '3 part of this Agreement 25 COMPLIANCE WITH LAW This Agreement is subject to all Federal laws, laws of the State of Texas, City ordinances, and regulations promulgated thereunder 26, EFFECTIVE DATE OF AGREEMENT May 12, 2006 (2:43PM) 9 This Agreement will t)egin upon approval by City Council and District Board of Trustees 4GREE[: TO BY CITY OF CORPUS CHRISTI BV Date George K. Noe City Manager Approved r~ t~leg~1 fornr .. . f' ,\\' L" .~,. ,jl By _ ' ' I \i\;"ll'.!~_'lIT~_ Veroni Ocanas . Assistant City Attorney For City Attorney CORPUS,~t1~!5TII~DEPEN?'NT SCHOOL. DISTRICT f " /'. .~~.. . //''5l B v +.-'-+-_~":-'::.-:; .._ .1.....:1. "::L ( Dr' Manu~ Flores President, \Board/of T rustew Jf ~ -!-.Y___O_( 14 Ii" / II ~../ 0.... /-'j .']1. .... 8 Y ----'::::::: '/.i . . Mary, ley / / Interim Superintendent of Sc ols Date._2-e2 if - 01 Approved as to legal forn, j., By. .t~~~~~~- . Attorney for CC IS f) May 12,2006 (2:43PM) 10 4321 - SOUTHSIDE LIBRARY I ,EASE AREA STATE 01; Tf(XAS COlJNTY OF N(JE(E~ BEING a tract of land containing 2.06 Acres (89,867 Sq. Ft.) of land out of Lot 2, Block 1, Amended Plat of Kaffie School Subdivision as shown on plat thereof recorded in Volume 52, Pages 78-79 of the Map Records of Nueces County, Texas. This 2.06 Acre Tract being more particularly described by metes and bounds as follows: COMMENCING at the southerly corner of Lot 1, Block 1, Amended Plat of Kaffie School Subdivislor1 as recorded in Volume 52 Pages 78-79 of the Map Records of Nueces County, Texas, THENCE S28052'15"W along the northwesterly right-of-way line of Brockhampton Street a distance of 22438' to a set 600 naiL beinq the Point of Beginning of this tract; THENCE S28052'15"W continuing along the northwesterly right-ot-way line of Brockhampton Street a distance of 380 18' to a set 5/8" Iron Rod stamped "City of Corpus Christi. TX", being the southerly corner of this tract; THENCE N61 o07'45"W through Lot 2, Block 1, said Kaffie School Subdivision, a distance of '50 26' to Cl set 5/8" Iron Rod stamped "Citv of Corpus Christi. TX", being an angle point of this 'ract; THENCE N52048'41 "W continuing (tlrouCjI; said I (It 2 a distance of 496fj' to a set Drill Hole, being an angle pOint of this tract THENCE N61 o07'45"VV continuing through Lot 2 a distance of 160.62' to a set 5/8" Iron Rod stamped "City of Corpus Christi, TX". being the southwesterly corner of this tract; THENCE N28052'15"E contllluing through said Lot 2 a distance of 328.00' to a set 5/8" Iron Rod stamped "City of Corpus Christl, TX", being the northwesterly corner of this tract; THENCE Sf) 1 "()7'45"E continuing through said Lot 2 a distance of 170.00' to a set 5/8" Iron Rod stamped "Citv of Corpus Christi, TX", being a corner of this tract; Exhibit A I of 4 THENCE N28052'15"E continuing through said Lot 2 a distance of 45.00' to a set 5/8" Iron Rod stamped "City of Corpus Christi, TX" being the northerly corner of this tract; THENCE 861 c07'45"E continuing througll said Lot 2 a distance ot 9000' to the POINT AND PLACE OF BEGINNING and containing 206 Acres (89,867 Sq. Ft ) of land. Bearings are with refere'lce the northwesterly right-at-way line of Brockhampton Street as shown on the Amended Plat of Kaffie School Subdivision as recorded in Volume 52, Pages 78- 79 of the Map Records of Nueces C()untv fexas State of Texas County of Nueces i, Russell 0 Ochs a Registered Professional Land Surveyor, hereby certify that the foregoing field notes were prep,lrel tJ me fmrn a iclnd survey made on the ground under my direction. fhls the 10'" day of May 2Cl06 fl ~ f). Oct. Russell D. Ochs State of Texas License No. 5,241 Exhibit A 2 of 4 F<Ussru D. OCHS, REGISTERED PROf ESSIONAL LAND SURVEYOR OF THE STATE Of TEXAS. HEREBY CERTIfY THAT THIS MAP WAS PREPARED FROM AN ACfUAl fir I [) SURVEY MADE ON THE CROUND ""IDEF u, DIREcnou IVJl) IS TRUl AND CORRECT TO llll DLST OF M1 k ',UWLEDGf THi', THE l~!'" DAY (cl!J.M 2006 J' If,,~'i~ ~'~'" /1; I: '-. '~'O'i'-1I"'",~ ~. Y ..' lj/f / 'i'qlf:- ,> .p~~ /1; "";>~, /' ~~I; l ~ Os, 7 1 ~'!(~l,-- '~- - / ~%f- / ;"-' / " /,~ / i ) ;;'01 / ~' !.'0 ( I '{, /, Q / . 'x.; /..2: (0 ," /I<k 1 '<;( I n'<./I /;;::. leX) '"' / \., I / Q:'<: /QQ-! . () / ,/ / (J ! JfY I /' 0) 01 I l(j i::- \ /~ t / ';)/ ~t & ~ . /1 I /, , STATE1F TEXAS COUNT' ,}I NUECES ~_4DOul RUSSEL l. D OCHS F P I TEXAS RECIST"RATION NC 5241 ~~;'- ....,;::::; OF ';C, ';'\ !~,'2." .' (.f ~\\\ . "' '\>'.. ~,\ S r t.,. ../. \.;,. . '" " 'f.t\ I' o .~. . . "'.' ~ ... RUSSELL D.. OCI-.~l,s. i) ,,>"'9 5241 ~":"Q- r <'''1 . O~ESS\,0 ,..\0 1/ "VD'''' <'- / ~ SUR\Jv~;;.--- ""~ (.? -c..r , "- (\\ ~ " ~ C" ~ o . /:J;. Q. :".J ,-', ' -'~~. ~ -'~' 0' '" 06 ~^'~ ':-J '-<. f..- Q),Yr_'r' '" C'~.1 ',) ry'~ Q.'~' J...... 0 Q:' ~:) "- IS}~' J '<: ~J Q" '" " -~ ,-<' !) .~ J / / ~~' '/ <l, SE T DRI! I HOiE "'-, ", ~s' '~~:f / "~~~ / j:) I' h --''-, /'- \, \ . '-, \.1 '-. /:J( VD Scale In Feet L1lASE AR.EA FOR SOUTllSlDE UBRARY PROJECT OWNER: CORPUS CHRISTI INDEPENDANT SCHOOL DISTRICT BEING A TRACT OF LAND CONTAINING 2.06 AC. (89,867 SQ 'I) OUT OF LOT 2, BLOCK 1, AMENDED PLAT OF KAFFlE SCHOOL SU8D, AS RECORDED IN VOLUME 52, PAGES 78 - 79 OF THE MAP RECORDS OF NUECES COUNfY. TEXAS, BEARINGS ARE WITH REfERENCE TO THE NORTHWESTERLY RIGHT-OF-WAY UNE OF BROCKHAMPTON ST. AS DESCRIBED ON PLAT Of THE AMENDED PLAT OF KAFFIE SCHOOL SUBD, RECORDED IN VOLUME 52, PAGES 78-79 OF THF MAP RECORDS Of NUECES COUNTY, TEXAS "-- '0' , '~, L 1. .. S '---'- ", '~ PARK LOT 1, BLOCK ~.-- " ',,- .~ 16 . 'b.>, ~Q:l:o;S~ ~. g; o 0'-.1 o r~ (>!/t; SBj" 0:>- ;; </S., OOO~ ~~ )? 0] <0rv ~ " c-; '- I~~ 45 ~ / 1? Q .~ ~ . " '\:'r- Q:' / iJ.' -;:: \ . / f.....O --.z.. /, L:: evl!,) / 1;' (fL-1 1\ 0 ~_. , <0 L2 // 0) f{; .!~3 J/ '\R ~ 10.00' o - 90'OO'OC" 1571' POINT OF BEGINNING SET 600 NAIL Exhibit /\ 3 of 4 LINE TABLE N61'07'45"W N52"4S' 41"W N2S'52'15"E 50,26' 49.65' 45.00' NOTE: SET 5/8" IRON RODS WITH PLASTIC CAP STAMPED "u TY OF CORPUS CHRISTI, TX" AT ALL CORNERS UNLESS NOTED OTHERWISE. ~ """"'" CITY of CORPUS CHRISTI, TEXAS Deportment of Engineering Services Survey Division 361-826-3500 Dof!J: 05/0IJIll6 anr.n ~ R. OCHS Ch<<Jred ~ O. NESMfTH ProjtJctc 4.J2' SOU1'HSIDE: U8FWl'Y NEW 2004 \WID PROJEr:TS J\8RIGHroH \oII.LAG€ "\DIM1\~~ SHEET , OF , ~# ~' tl i-- tJ ii f_~ - V) Ie ~;:t ~<.:.>. ''It 0 \Q~ ~ Q;: P:; I ::! i5~ ~ ~ (.) V)i:!l I ~ ita; ~ O Q;:O~' ' (.) U'-' ~ ;- ~. >. l.o..Cj '..' .... O~ <::3 0( ~ 1::' ~ ex: ~ CO ~ -.l llJ Co) ~ C/) :r: I- .::J o CI) L~, 28 AGENDA MEMORANDUM DATE: May 30,2006 SUBJECT . ..... , [I'ian! In Houlevard Street Improvement Project, Phase 2 )rkl()vvn L) Bison (Mireles) (BOND ISSUE 2004) AGEND.8ITE;M~ i\ Motion cwthorzlnq the City Manager or IllS designee, to award a Construction ,ontract k I 8, G Contractors of Corpus Christl Texas in the amount of 'B3 910 sdbject to certification of funds, for Cimarron Boulevard Street n,ro 'emeecl Ph;:iSP Iron! IrklnWf\ to Bis(!n (Mireles). (BOND ISSUE 10(4) B !vlotrO/i auH1o!l.-.7inq the City McHlager, ur his designee to execute a Construction f\;1alerials Testing Contract with Rock Engineering & Testing Laboratory, Inc. in the HTlCJunt of $3>),6,~9.00 for thl: Cimarron Boulevard Street Improvement Project Phise ? ! Y')rktown to Rison (Mireles) (BOND ISSUE 2004) ISSUE hiS Wd"; appro/eel f\jovember /: 2004 In the Bond Issue 2004 Package mder hOPosltior Street Improvements The construction contract and testing 19reen1Hld atH n~;c:essar to cornpletr the work FUNDING j( j {, thiS ~roJe( are d\!dIIClhle in the Fiscal Year 2005 Capital 'TlprOVi'!lI,:::.qt RECOMMEN.I)ATlOI\l ltatf recornll1Hnds Cllipr(w<fll of the nil ~tion as presented a' ~\'.' \\) \/~I rie Gray, E D,k .to! 01 Stor'" Waler .f\ ~"" . ,.I; .l L~ . Q \~--sk'!i~ ~o Garana-: P.E., Director of Water -+--.-- , /1+'" f"f1 1<; l~d~t.., ~ngel R. Escobar, P. E., 'Director of Engineering Services .5/;). fib (; ~~~ Foster Crowell Director 01 WastewdtH i) Adcfitional Support Material: Exhibit "A' Background Information Exhibit "B' Project Budget Exhibit Bid Tab f=xhibit Location Milp ; 'i-iQMt;\Lt'J~t[F' ::i~c, t- t'~\~r~~~_' 2.cQ"; "26,' I BOl"e.'.;I.; ?~,(~_q_n>Lrl,,~:t'c ',M(~LIK)far"jur-, BACKGROUND INFORMATION SUBJECl Cltnmrnn HOlilevard ;trHH improvement PrOject r.:lhase 2 from Yorktown to Bison (Project No 6262) BOND ISSUE 2004 PRO.JECT PROJECT DESCRIPTION. This rH(*~ct Includes the reconstruction and widening of the existing Hllmproveej two lane 'o;ldway to ..1 tUIlC tlonal artenal four-lane roadway with .. Contrnuou u-"nter tu.!) l:.jl)/' Curb and (futtm. '#} Sidewalks f)nVP\IV>1 \j~< JndE:rgnJ(jii(j jtilJtle~, i .ane stnpHlg dnd mar-kings anc1 .. Installing wheel chair ramps to meet fDLR requirements ;~dditionally, the project Includes Irnprovement to the drainage ditch from the intersection of /orktown dnd CI!T1arrOn f30ulevard throUqtl Bill Witt Park A traffic signal will be installed at the ~'rnarron ,md Bison Intersedion andi nw traffic slqnal will bp installed at the intersection of ~!rnarron m' j Yorktown CONSTRUCTION CONTRACT, :urb to back of-curh c()IIHct< if streel mderground utility Ilnpn ive-nents with )11!) I [ ,f ri'~V\i 1 AU II i pr'lIect cunslsts of constructing a new 50-foot back-of new 4 lane roadway wirh center left turn lane includes ,pinforr rJncrete stnrm sewer pipes and inlets; ;j ;>~Vv eeH)!, "'f~t ), 4,[';)) , ~w i) ,I leV 8" ann U waterlines at lel appurtenances; Wclstewater gravity ilnes and fiberglass manholes, 'r ;md 1 wastewater force mains and fj81 i,JO 7 0' new 1 appurtend 1C"S, and 5,77~ I f (.f new PVC electncal condUit Aclclitionallv the prolect ncludes drainaq'" ditch reqradinQ and earthwork in Bill Witt Park and temporary traffic control~ BID INFORMATION: hi: proJecr consists sole t)ase bKl The City of Corpus Christi received sealed proposals from SIX (6) bidders on May 17,2006 (see Exhibit "B" Bid Tabulation), he bids recelvee] rangec frum $3 , 14,~~ 053 to $6,081 ,42600 rhe engineer's estimated cost d construction is $5 /HCl 1 00 ~.. ,ve of the SI> propusals \veri:~ properly '~><Hcuted dnd !net ail of the City's requirements_ One bId cluj not contam pages & 2 If the Proposal Form nor did it contain Special Provisions items A- ;'8 A-20 and A-3D as required The Citvs legal staff determined the bid irregular, but this did not affect the pnority bid order and does not affect awarding of this contract Minor arithmetical errors were also disc;overed >n the proposal forms for two bidders, but these errors did not affect the order of fmish of the '"IX Bidders ,.N[):-l.S\( 1- ~~~~~T ~~~] it,!' , & G Contractors, Inc. IS the apparent lowest qualified Bidderforthis project. They provided all equesteo documentation with their bid proposal and it has been evaluated by the City's nqineenn~J Consultant Mavenck Eqqlneering. Inc Due tel the differences between the nqlneer f ~stirnate and thlt which was ,;tlbmitted by H & (3 Contractors, Maverick Engineering ifltactec t ''\.1 {' I-!rilet( ,rs tu VH ify t I H~ completeness of their proposal evaluation process .~ G C, nlractor '~lated that thpv have examined their proposal and are satisfied that it is Freet '1ereforf- Hie (-Ity s ,0tlSultant Maverick Englneenng, and City staff recommend that based on (>w bid and rneetlnq satisfactory qualifications based on the C:ity's evaluation criteria for this )inlect that a construction contract be .lwarded to H & G Contractors, Inc. of Corpus Christi, ~>.xas in r1C amount of $?: 774.91 (I!13 subject to the certification of funds, for the Cimarron 1Clulevard Street Improven lents project Phase;.> from Yorktown to Bison (Mireles). projed mj-d dl th tin ( so constru,tlon ';-lfi Ot'~lin early In the summer due to !\i(lrk beinq jonf~ r' t: ont ( ( Mlrele!; f if-mentarv School City staff has been in contact with iSO and Mireles Flernertary to :;chedule as much work as possible that will affect the school jUring the Si lmrner rnonth~. ~ONTRACT TERMS. It IS ,Iroposed Itlat the prolect be completed in 336 calendar days, with urnpletio;'mticipatel j t iy une 2(}) 7 TESTING}~.GREEMEN~: his agrHernent will proVide for the necessary Construction Materials ,,-;sting contract and budgt,t for thl'i prClrc:ct e~OJEC~ BACKGROUND,,;, On 1, lesd Novernber 2 "Ic:ction b ;" (lposiUOfl::j <fnmunit 14 r Ii Nc\pmber : Hmty and oinlxled wIth he Presldf~ntI8! Election 2004, the City of Corpus Christi held an capital improvements for the elnctiol was held jointly with Bond issue 2004 p,1Ckage Includes $95 million If) projects to be funded from ad valorem Aoperty taxfls (a General; Jblrgation Bond Issue) In Street, Public Health and Safety, Public acilities, [:larks and Hecreation and Bayfront Master Plan projects. The proposed projects 'arget the City s most Immediate needs to Improve eXisting physical facilities, provide for growth, Hid protect the Citys InveSlment If Its Infrastructure ')n May 5 2005 a conti acl for profeSSional services was awarded for the design of Cimarron Houlevard from Smatoga t.> Yorktown (Phase 1 ) and Cimarron Boulevard from Yorktown to Hlson (Mireles Elementary School) (Phase 2) Work for these projects consists of: Phase 1 from Saratoga to Yorktown - The section of Clmarron Boulevard bound between Saratoga Boulevard .& Yorktown Boulevard is currently a rural unimproved two-lanH roadway Cirnarron 130ulevard Phase 1 improvements will consist of the reconstruction and widening 01 the eXisting two-lane roadway to an arterial (A-1) four- lane roadway with d continuous left turn lane, curb & gutter, sidewalks, driveways, storm water improvements. water improvements, wastewater improvements, and the installatIon of Improvements to meet T AS standards as administered thru TOLR. ASSOCIated improvempnts such as 1)8Vempnt markings. traffic signage I traffic control, !Ni f~EXHIBIT "A"~J I: Pa e 2 of 4 ,._,__~_~!Jl~~,~,~ street lighting and ROW acquisition will be made as required. A new traffic signal will be installed at the Intersectlor of Cirnarron Boulevard and Yorktown Boulevard. Won on thiS pruject I~ unc1erfeslqn ane!lt IS scheduled for thiS project to be out for bids 1 January /'(lOllimefrarn8 Phase 2 from Yorktown to Bison (Mireles Elementary School) - The section of Cimarron Boulevard bound between Yorktown Boulevard and Bison Drive is currently a rural mrnprovl:,d 'w(!arlE~ f' ),'ldwilv Cirnarron Boulevard F)hase 2 improvements will Gonslst of thE rSee)(1s1 ructlon dnu vVldeninq of the eXlstinq two-lane roadway to a collector (C3) four lal8 roadway with curb dnd gutter sidewalks, driveways, storm water jpiprovernents, vlater In)prov8ments wastewater improvements, the installation of improvements te mt~et r AS slandards as administered thru TDLR. Associated Imprm/Hments suet i a pavement r narkings traffic slgnaqe / traffic control, street IlghtinqmCi F~( Y'i': ;OCr) Mill 'narh" PRIOR COUNCIL ACTION. . . NovE2.l1lber 2->-.2904 - Resolution expressing offiCial Intent to reimburse costs of the 2004 Bond Capltallrnp10vement PrOjects (Resolution No 026015). NO\it2!nberjJ-L-~m)4 OrdmcHlCE: canvassing returns and declaring the results of the Special Electior held on November? 2004 in the City of Corpus Christi for the adoption of five bond proposiftons adop1ioll of a permanent ad valorem tax freeze on residents homesteads Dersms', ye;w, of aqf' or older or (Jisabled persons and eligible spouses, dnd adopticn of seven drnendments to the Charter of the City of Corpus Christi (OrdInance r~( '6Ci)2 Marc~b.29LZQQ'~ /;,pprovClI ot FY ,)004200') Capital Improvement Budget for $17 7413000r'Hnmcf'OLb1 &PIli 2f.3,2005 dinanCf Ing anI' J<:lCatlflq 1 35-square foot portion of a 10-fno~ WidE i. ililltv I aserne!)f ill )t Lots (H) and CJ1.. Block 1, Mariposa Subdivision locate! s! ilJth ,i Ihf Ynrkt( 'Wf HJleva and CIfTlamon Boulevard intersection, in connectton With HIe ;imarron Boulevard Street Improvement Project, Phase 2, from Yorktown to Bison, BOND iSS if' 2004 PROJECT), dnd declaring an emergency (Ordinance No 026234). f." May lZL2QOQ Ordinance appropnating $402.233,80 from the unappropriated interest earnings from Street >000 CIP I unci 3411 B. and appropriating in Street 2000 CIP Fund 3411 B appropriating $20~) 1 h9 ,from Street 2001 CIP Fund 3540 and appropriating in Street 2001 elf) F'! md 3540, for trH~ Cimarron Boulevard Improvements Project, Phases 1 & 2 amendincj capital budget ddopted t)y Ordinance No 026188 by increasing apprupnatlons ()y $6C14,402 83, ami declanng an emergency. May 1 ...L 2QQ5 Moti In authorLJl!lq the City Manager, 0 his designee, to execute a Contract For Urofes.,ional :3ervlces With Maverick Enqineering in the amount of $1 ,3t;999Y for H,p CI'narron 80ulpvard Improvements Project as follows: .. rJhase 1 horn Saratoga t(1 vorktown · Phase 2 flom Yorktown to t3ison December ,1 :3, 200~ - Motion authorizing the City Manager, or his designee, to execute Amendment No 1 to d Contract For Professional Services with Maverick Engineering in the amount of $182,200 for the Clmarron Boulevard Improvements Project, Phase 2 from '(orktown to Risen '.Oil' G' i EXHIBIT "A"Ii . F'~e ~~f.i:t, jj PRIOR ADMINISTRA riVE ACTION: JUIYl'l20Q4 Fxecuted Small A/F Agreement with Pyle and Associates in the amount of $6? for ttHi <>mc,rron Boulevard Improvements Project Phase 1 from Saratoga to YorKtown )uly_t!..i.2QOQ xeo lied Sn lall Aft Amendment Nol with Pyle and Associates in the annunt of $3 000 fIr the (:lrJii-l['on BOLJlevi-lrd Improvements Project, Phase 2 from Yorktl }wn to 8IS0:, AU.ill:l?UE)L~~Q04 [istnbutl\)PY f~equest f-or Oualificatlons (RFQ) No. 2004-03 Bond Issue 2004 ProjeGts 10 175 ImglfH'lering firms (70 local and 105 non-local). l\Aar<j) :zlSL:20Qfi Addendum No ! to the Request for Qualifications (RFQ) No. 2004-03 Bond Issue 2004 Prujects tc 1/c- engineenng firms (70 local and 105 non-local). f\Qrli l\dcHndu ~() the F~equest for OUfllifications (RFQ) No. 2004-03 Bond i SS! Je 20t)4 Pr '1ectj~ Ii 1 ngineer 1m) finns 10 Ii leal and 105 non-local) EUTURE COUNCIL ACTION: Nt) ddditional contracts are anticipated for the Phase 2 ':Imarron Boulevard Street mprovE!menl Project There will be a future construction contract for Pf18se1 of H'e Clmarron Boulevard Str8f~t Impro\lernent Project from Saratoga to Yorktown that cmticlpaled te be presented to 'It\' luncH in the March 2007 timeframe. If required, a nalerials k~slln~_i contract \i\dl also he Dfcsenterj Ie) fled at thFlt time. E.....X... HIBIT ".A.....".~....] c=cPage 4 of ~_J ND...~~S\( ).1 PROJECT BUDGET BOND ISSUE 2004 (.IMAf~ROt\J BOULEVARD PHASE ",rk tew, 1 to Bison (Mireles i FUNDS AVAILABLE Staples Stref'l Street~ Water Stor 'I vVah~f Wa~iewatt' otal FUNDS REQUIRED: ::onstruitiCln OJ <> (, ~=:cntrlctor':: Streej Storm 'AJ ate! vVasteWr1ter Wate' ,=:on5tl U( tior' l( ,Ia j';ontingl-.>ni!eS t:onsultant MavE'nO; E Igl' Testing R'Jck Fngilj(;er ~dmlnis'i alive ;~ein fe! en':, nginet" 'tliJ R'ci!ntJ'd I> Pnnting '~l Dtal tAay (SO ;'OOh $ :~,3?2,000,00 539,527,00 '5 5,850,00 511,30000 2,040,120,85 , ,028,607.15 340.162,00 366.110.00 $ 4,928,67700 $ 3,775,000.00 377,500.00 628,788.00 32,639.00 37.750.00 75,000.00 2,00000 $4,928,677.00 EXHIBIT B Page 1 of 1 '"~'il ! ~!l , ~~; ~~ !! .-Ii :g ill .... o z Q .... ::5 i i ~ I- ,~ " ~II ~i -1'~1(1~~ ~; II~;'~; ~ ~ ~ ~rijl~-~lm~l~ ~ ~ i~~l-~Ii ~ ~ ~ c~ ~ ~ci ~'-i ~ i :II r ~ i'~ 1; ~ s ~a1il~ ~ ~ ~I~'~ ~I~ lil~lal~l~ &I ;Ull:l ~ ~ 1;; &I ~ ;1; ~ 3ll:l ~ ;1;:1: ~ , I;;" ! 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I!.! i ~ ~ i l<il: :; I 1 ~ ~ 18' i:: II t ,II I I! : ~ ,I t~~~irfi ~ &.; IlgV)ij) J ~ I~I ,~ i : .. I ~ : I t II I 'II , i i .1 I'; .l....o",-~ ---L~ ii' ::,JT811588~ ~..' I: i:~J'8!~ g ~ ~ ,., II '. : '>l.! ~I ('.~ <f"""". "-~ ~ ,;. ',Ii I" '. ;::i1!~13 :? :j:;:l; " ::;11 'lh:~ c;':~ t41~ ~ ~ ~ II I, ;i!''''; 1-,r.j 'fA,., . IT I,il, 15; . - :1 '.' " il i. Ii ~ h Q 1! ~ S ! 0 1"1 ,! j: II II II E ~j ; ~ ~, ~ ! ~I ! ~ ~ ~ ~ = ~ .:L ~J T II 1i ~cn I ~~ i ~ ~ ~' 10 i ~ ~ z ~ ~ 0 ~ '" >- m Q :;) 0 a lil ~ f ~ ~ t ~... Q n :L L <:{illOO 'ffi 1ii 11 1i n... a... a. ll. 't '0JJ(Vjc( . _ ~ ,-'!( .;ex '-~i-L ,_.-..-.:ri:.. .;.'bL ,----ivv:J' ,"""';_,__.;,." Wo' "f 1 'f/}'!f.. . 1'14 ! . 'T/['G'; , !...~ '11,.; ; ~ ~1-/' N 'vi .4 ...Ji zi -.:JI . '.' ~I// '/0 " ",' z{~ _. '~?tr;o 11:1 PROJECT LOCA TlCW LOCATION MAP 'm '.'.' ., t-- \ ~ ( ! 111 f. -t ... ., fBi'l,r- i :~t' ^,~M . C fET .'. ' , . , , , _L . . 'fEi '" TW' .,;' " : i-fi+Hr\:f, u ULl. 'Lj, jl FHHf", .....~.. ',', m. . 'R,' ,. , i~,;,; '. ; '," .L..~.L .. ~._ .,' ~'.,' ffiffi"ffffi'" ". . IT' .... ! '4 1-+ ", ...1 !_U..ll .l.J, j iJITII'"l":'YIJ , ~ f 1,~ CI"-'.-ViSOt, fl! v:: ~--- ;. / CONSTRUCTION LIMITS """ --'-"-- -".. "'lIlIIlIl'W~, VICINITY MAP CITY PROJECT No. 6262 ',fOT TO SCALf EXHIBIT nD" CIMARRON BL VD. STREET IMPROVEMENTS PROJECT PHASE 2- YORKTOWN TO BISON BOND 2004 CITY COUNCIL EXHIBIT CITY OF CORPUS CHRISTI, TEXAS DEPARTMENT OF ENGINEERING SERVICES PAGE: 1 of 1 JAIE 05-23-2006 ~ -- - - - - ~~- 29 ....... ,""" CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: May 30,2006 AGENDA ITEM: A. Resolution authorizing the execution of an agreement with Ullah Investments, Inc. providing for temporary property tax abatement. B. Resolution authorizing the execution of an agreement with Shutters Management, Ltd providing for temporary property tax abatement. C. Resolution authorizing the execution of an agreement with Nueces loft Apartments providing for temporary property tax abatement. ISSUE On May 9. 2006 the Council elected to participate in tax abatement and adopted Tax Abatement Guidelines and Criteria. Three developers have applied for temporary property tax abatement as allowed by the recently adopted guidelines and criteria REQUIRED COUNCIL ACTION: Approval of the resolutions authorizing the execution of temporary property tax abatement agreements with UlIah, Investments, Inc., Shutters Management ltd., and ~(jeces loft Apartments, l. P. PREVIOUS COUNCIL ACTION: Since the year 2000, Tax Abatement Agreements have been approved for First Data Corporation, Trinity Towers, ltd., Cintas-Rus, Inc., APAC Tele Services, and Sitel Corporation. CONCLUSION AND RECOMMENDATION: Approval is requested to enter into an agreement for temporary property tax abatement with Ullah Investments, Inc., Shutters Management, Ltd and Nueces loft Apartments, L. P. ~J~~ Irma Caballero Economic Development Director Attachments: BACKGROUND INFORMATION The Tax Abatement Guidelines state that a facility may be eligible for tax abatement if it IS a "Basic Manufacturing or Service Facility, Regional Distribution Center, Regional Telecommunications/Data Processing Center facility, Regional visitor/Amusement Facility, Enterprise Zone Residential Redevelopment Facility, Central Business District (CeO) Residential Facility and Petrochemical Facility." A Renewal Community Facility may be considered on a case by case basis for abatement and if the building or structure will be defined as rehabilitation project or is defined as a new facility. Projects that may be considered Include mixed-use, retail facilities, and hotel accommodations. In an effort to support the development of residential facilities an additional category, a Central Business District Residential Facility, was created which waives the job creation requirement and provides for 100% abatement for up to two years construction and 5 additional years. The value of the land comprising the property shall be fully taxable. The base year value of existing improvements comprising the property shall be fully taxable The value of ineligible property shall be fully taxable and the added value of eligible property shall be subject to abatement as set forth in the tax abatement agreement Three projects are submItted for your consideration for tax abatement: Ullah Investments, Inc. submitted their application on August 8, 2005 and is constructing a 66-room La Quinta Inn & Suites located on McKenzie Road and 1-37. The facility is in Census Tract 50 and therefore qualifies as a renewal community new facility project Under the Renewal Community Facility designation for every $50,000 of abated added value to a property one new permanent full time job must be created. The total investment is $4.1 million of which $3.6 million is attributable to property improvements. This project will create 26 new full-time jobs, therefore abatement can only be provided for a portion of the improvements or $1.3 million dollars. This facility will be the first La Quinta Inn and Suites concept in Corpus Christi. Completion of the construction is expected by July 1 2006. The value of the land is not subject to tax abatement See percentage of abatement in the Chart below for "New Facilities." Construction period (not to exceed two years) 100% -1 ---t % of Abatement (new facilities) - .- Year % of Abatement ( retlablli!ation) 100% Year 1 ---'~"'.--- -".- Year 2 --~..._- Year 3 100% 100% 100% 75% 75% 0% Shutters Management Ltd., a partnership between the Joe Adame family, the Nolan Ryan family, and Mr Jared Shope, submitted an application on May 24, 2006. Tax abatement is requested for the Shutters Building located at 602 Winnebago Street. The eXisting building will be converted into a 34-unit high-end, loft condominium facility. Construction is estimated to take 10 to 12 months and completion is approximately mid- year 2007 Lofts will range from the mid-$230's to the high $4oo's. This facility is located in Census Tract 3 which is a renewal community census tract and is also in the Central Business District There IS no job creation required for residential facilities in the Central Business District. The estimated added value to the property will be between $11, 500,000 and $12,000,000 dollars The value of the land and the existing bu~ding value are ineligible for tax abatement. Tax abatement for this project will be 100% of the improvement value for up to two years construction and 5 years thereafter. Nueces Loft Apartments, L.P. submitted their application on May 22, 2006. Tax abatement is requested for the "Nueces Building" located at 317 Peoples Street. The project involves the adaptive reuse of a historic downtown building into 66 rental apartments comprised of lofts, one bedroom and two bedroom units. Construction is estimated to commence September 1, 2006 and completion is expected by September 1, 2007. This facility is located in census tract 3 which is also part of the Central Business District; therefore the job requirement is waived. The estimated added value to the property is $3,952,964 dollars. The value of the land and the existing buifding value are ineligible for tax abatement Tax abatement for this project will be at 100% of the Improvement value for up to two years of construction and 5 years thereafter Please note that for each project the following information is provided: . The tax abatement application . A Resolution . The tax abatement agreement . Map of the property Ullah Investments, Inc. Application for Tax Abatement City of Corpus Christi Renewal Community Facility August 8, 2005 RECEIVID AUG 0 8 2005 ^,t}ij~(;cMEHT & BUDG&r Ullah Investments, Inc. La Quinta Inn&. Suites Hotel Application for Tax Abatement City of Corpus Christi Table of Contents Application for Tax Abatement Exhibits A & B Executive Summary Property Location and Legal Description Franchise Information - La Quinta Inn & Suites Construction Plan Construction Budget & Schedule Equipment Budget New Jobs Created Revenue and Motel Tax Projection Description of Developer Paae 1 3 4 5 9 12 12 13 13 13 APPLICATION FOR TAX ABATEMENT Tlus apphcation should be filed prior to the beginning of construction or the ulstallation of improvements. The tiling of this document acknowledges familianty and confonnance with Guiddilles and Criteria for Grantlllg Tax Abatement. This application will become part of the Tax Abatement Agreement and any knowlllgly false representations "ill be grounds for terminating the Agreement. This Application should be submitted to the Clly Manager City Hall, 1201 Leopard, PO Box 9277 Corpus C1tristi, Texas 78469 I tor properties inSIde the City limits) and to the:' COlUlty Judge, Nueces County Courthouse, 901 Leopard Street. Corpus Cbnsti. Texas 78401 (for properties 111 Ulllllcorporated areas) FOt"R coms OF THE .-\PPLIC\TIO:X SHOl1.D BI: fILED lHTHTHE .\PPROPRB.IT GOVER'\"}!I:?\"TAL l""l\TI. Applicant Information .. ,............................................D~.;;..A'ugusf'8", 2005 , :'mpanv :Same Ullah Investments, Inc. A TTACH ANNUAL REPORT Number ofEmplO}'ee"> 12 '$1!b Avers Corpus Christi, Texas 78415 ProjKt Information T:"'JfFacilitY ............"..........,..-.~........,...... .....n......................... .............................._...,..". ...,...,.....,......,,,...........................................................,..,....u... DBa"c Manufacturing or Senlc~ wdustt' DPetrochermc8l F acilir:o' D ~g1cruU \"""C'''''A.wa",= F,,6,11" _ 11 Renewai Cotllllluuity FOKilit; De',cnbe Pr.:-duct Senlce 01 Facilitv re be ~'1cndcd DRegJooal DtslI1bution Cenle: DRegJooal Telecc1lllllW1lcatI01l; F8cilin' DEoterpme bae ~>ldenti81 Rede-,eloplllem FOKilily Ullah Investments plans the construction and operation of a 66 room La Quinta Inn &. Suites under a franr.hi~ Agrll!~mll!nt with thic nAtinnAlly r--n.gnii'~ hntll!' ()p~rAtinn ~()nVlI!nill!ntly located on McKenzie Road and 1-37, the total investment planned for this hotel is $4.1 million dolla.... La Quinta Corporation is one of the largest limited-service hotel operations based in the United states with over 9,000 employees and 65,000 rooms. Creating 26 new full time jObs, this will be the first La QUlnta Inn .. :suites concept In corpus cnnsu. PF'}('CT ~cnpl1ell -\"',1(11 a., Exlllbl1 -\ \-aee, IIlCle lette:--lH page" a statement rlliJ;; exp:a..tlllUg the p1oJeG. dc,enbing the eXJ.stlUg Slte aud 11llj>lO'."ement". desmblllg aJ: propo"ed IlllplO';emffih and lU':e,=m ~nd prC\'ldu!g a ItS! of uupt'o','et1ImIs and p1cpe11y for whiclJ :\t:;lteU1lellt h tf1..1ue-,red ~h'E\li PROJECT OEXPANSION OMODER},1ZATIOK Location - 1-37 and McKenzie Road Address - 3500 McKenzie Road ~~~rsq~~~tT 5 Blk8 2.3 ACS____.__~__ - Corpus Christi, Texas _ ~cbcd Dt,tncr_~~~~ M~~~ay ISO -\ttacb a; E:dllblt 8 looe OIlllCle !eneHue pages) a cC1Ulplete legal de;cnptlon:wd '" rn"p >bowmg proposed site. ECClJlOllUC InfonuatlOn ..'..,....'.................,.......,.,.,..,...., ............,..'..................'..., ..,',.,................"...........,.".-.,...................",................,-.....,.....................,...........-..,...............,..... COllstl'llCtion Estun.,tes IF ~IODERNIZATION C01lll1leI1(Ot'1UtlJt Date C"mpleti.oll Dale Peak C01I'tI1I(.'t101l Jobs. Total COSt of COII\tmclJon August 15, 2005 March 1, 2006 60 $3.6 million E,tnlJ.1t~ EcolloDllc Life of Existing Plant .\dded Economic Life from Modernization: yeart, ye-.ars Penuaoent EnlploYlIlel1t Estuualtli 1m ,1 Permanent Employmellt . "llllllbtr of JOD, Created 26 26 p.WEmo 1 E >tiwated Appnmed Value or; Site Land $225,124 IllIpro\'elDent~ Penonal Property A, of ]anuan 1 PtKedmg Abatauenr Agretme1ll \'alue of Abated Propeny upon Completion OfProjKt Value upon Completioo of Project olalI)' Propmv and PrOject lmprO\~h not SI1hjed to AbatftUl'nt $3,597,500 $552,500 $225,124 Is the land currmtly UIlder au ~cultura1-u", or open-space exewptron' Y e~ CJ1';o KJ Land/In~ Ta"AccI.No. R' ,n1$ PersonaJProp.Acct.No_ \;ARIANCE h lhe applicant seeking \1\nance Illlde% 5ecll00 ,(f) 'Of the Guidelines' Ye, ONo XIIi "yes-' attach the required ;opplaD!ntary mfOl1llatlOll. OTHER ABATEMENTS Has the appticant m.~de 'ppl1caflon for abatffile1ll of this project by 3UOther~. jurisdictioo or ue-Mby cOllnties~ Yes ONo [Xf '.\"eS'" promle dates of appl1callon. heanug date; .fheld 01 scheduled. nat1loe Jufisdictions and contacK l11d leften of llllelll I ':OMP_~"Y REPRESENTAffi"E TO BE (ONTA( i Aman Ullah _..._._.._-_....~ --_.. --.- President '\Tame: T1t]e Aman U ah President Name and Title of Aud10rized COJl4l3ll)' Official 5220 Ayers Corpus Chri~, Texas 78415 361-855-0835 -\ddte-;" f elepooue 1:'\:STRUCTION':> -\Pj)hCliHS .iUd p:0Jecr, mlb: meef [;le teqllU"emelHl ~"Jl1bhed In. The GUtdelme; and Cnreria :11 order [0 ,ecel':e pO'Hl':e consrderanou. '>eclioll :' of tbe Guidehne>. for example. ;t'lS OUt regul3110ns governmg eligible tac:l111es ehgibk Jtict mehQ10le unpro'. eUlenT\ renn; and econOllllC qU31lflC3tlom (onfoffi1ance with all >ections II equlred :or eltglbllIty wpuc..l,. no,," r\FOR~L-'<. no:" fhe [as-me' ,mil lUay COlblctel Apphcaut s finauc:al (apacHY HI detefllli.lllng whether 10 enter wto an rbarernetlt agreement Establtlhed companie; for '.\'hich public Ulfonn.1110n [; d':ailable_ or me wholly-owned 'mUlesse> of \\let COlllpa1lle>. >hould attach ~, ;ratement showing when the company was embl1shed. busmes; ",felences DDllle ,olltar! ,lud telepbollt :lumDrI <'f pnnClpal bank Jecoulltanr :md .,ttorney) Jud may be required to ,nblW[ an ,ludlled fruauClal,:atellle1li and bUIllIe;\ plan PRUJECT lNFOR.;\L.l,. '10~ uul'" faCLlme\ listed in the GlIldel1nel may recel':e ab:lletnelll '.'.'ithout applYUlg for a nriance. Check the leflllltlOll\ m tbe GU1del1ne' to see tfyou! prOject qu.ahfle>. Iftbe proJecr [\ a Basic Manufacturing or Service Indmtry ,t a ReglOual Dbtnbmlot1 Center the Appl1c:nio1J should mc1ude marker smdie>, buslOess plans or other material, lemo1lStr:nlllll tlm :he facib~' is uHend"d !( ,"1-"1 l11Jrket the Ul3JOrit': of which 1\ outside of the I\'uecel Couury egl,'L '((1:'\'O\HC l'\TfOXc\l-\TI('N Perrnane!lt Employment E,t1Ol3tes- In estimahng penuaneur employment mdude the total nLlOlber of job, \lsmg Full TIme Eqwnleuhi cre3ted at this ;It!' bY \'our finn as well a> known permanent jobs of >et"Vlce contractors < t'qlllred fOI operatIOn E>tl111ated Appral;ed Value on Slle The \.alue Jal1~,. 1 precedmg abatement should be the value ntabh,hed bv the Nueces County Appraisal Distf1Ct If the Applicant mUST e>timate value because the t3."\:able value i~ ;wt known or IS c01p.bllled ,\.lth 0111 propeme> under a SIngle tax aCCOllllt, plea>e ,0 state To qualify, the abated plOperries must meet the emma otnlmed U1 the- Tax Abatement PolICY Projections of value should be a'besl ~stiUlate" ba>ed 011 taxability in TeX3> 2 Executive Summary Ullah Investments, Inc. (the "Company"), is pleased to present this Application for Tax Abatement with the City of Corpus Christi for the construction of a new La Quinta Inn & Suites to be located at the corner of 1-37 and McKenzie Road. As part of the expanded area of the Corpus Christi Renewal Community, this project is eligible under the Guidelines and Criteria for Tax Abatement. Ullah Investments, Inc. is a newly formed Texas Corporation organized to acquire, develop and operate the La Quinta Inn & Suites as well as a newly inaugurated Shell Service Station and Convenience Store adjacent to the La Quinta project. Aman Ullah, President of Ullah Investments, Inc. has successfully developed and operated a series of businesses in Corpus Christi and South Texas including 7 Shell Service Stations and Convenience stores, a successful retail jewelry store, and a Truck Stop and Motel 6 in Sinton, Texas. Mr. Ullah was named SBA's Small Business Person of the Year for 2002. The Company has entered into a Franchise Agreement with La Quinta Franchising, LLC to own and operate for a period of 20 years from the date of Opening a La Quinta Inn & Suites and obtained Territorial Protection for a radius of Four (4) miles around the property. The La Quinta Inn & Suites concept includes standard rooms, king rooms, and two room suites designed for longer stays. As a Hotel Facility, the majority of revenue will be provided to customers outside a 50 miles radius from Nueces County in accordance with the Guidelines and Criteria for Tax Abatement Total Design Four Architects of Corpus Christi has been retained and a complete set of ardlitectural and working drawings has been prepared and the project is ready to begin construction scheduled for August 15, 2005. The total cost of construction is budgeted at just over $3.5 million dollars and combined with the budget for purchasing furniture, fixtures and equipment of nearly $600,000, the value total of improvements of both real and personal property represents an investment of $4.1 million dollars. The La Quinta Inn & Suites anticipates generating 26 new full time jobs with an annual payroll of nearly $330,000. Due to the strong nationwide marketing and reservations of La Qulnta Inns, Management of Company predicts occupancy of 80% and an average daily rate of $65. Using these projections, the Company anticipates generating nearly $190,000 of additional Hotel and Motel taxes annually. 3 PIoperty Description and Location The building is located at the corner of IH 37 Access Road and McKenzie Road or 3500 McKenzie Road. As can be seen from the U.S. Census American Fact Ander printout included below, the property is located in Census Tract 50. Census Tract 50 is part of the expanded area designated a Renewal Community in October of 2004. nW'''.1n /-J(II'I!'.",,1 Pn!!~ ! (If I S..",.:h "-au ..'.. ntI", . /.(1'''''_~'''''~ ("~r.,ph~ SNf't.f'\ !--.::<(l::il?:" tl':l~{'JO})r;.ph'~' SB~(J:.on Jl:1E~no<: . :~1f(:1 8 )'B-:U Br..j ar:4Jf ::n' "fl~IJ~ 20c(~ II [-ll~1 ;~ ~lf~~t .~d::-'(J~;= i:',' :w,;t !"~j;~:!' ':et ,'.:'"r(:5~ ;trr:r:l:'rl:-!-I';>S~ .;w.1 /: 1-1 ,-; -.('j~- f::lf:.:~: '(jr) '~(1[1 \k~;l-'.L';j" h:r":1 '~IU': ;::lll:.l -;-P.4" ;#i r';::;'Jr:'lf-!t..~.~ ':":;)f;;~ail'1r1!:J .1500 Mckinric Ad Co.rpU!; Chri~ti fnr.a~. jS410 o:,lec a Q~(.;Jrh-Crl~::-~'~a?-,~ .::h:::io: 'Gu 'f" T,},.,., ~(,LI-:>r t'':.Ji:;"..~, ':-.:':1.1 :'=:'-'-l...r'F.~' ::;,_<t..Jr.t~~:':'-1 :.:U:iU:; :~"'rr~IJ ; , -! :' ,:r,~~I.~ T,'..1' 1- C'o;{"-'I~'.I ~ T I .f. l' ,::-~~I fa:..:.'$< (.,i.<.D: [;b~"',o( .~)".,.JP , fU.~. gh;i':~ I r;;-r:. '1.lp n '~'(IIJT.J Di~!'i-:..'trReMa~' \'r::hr.:J ~Htr,:-" '111 rr~ltH' :.jY)\"I~~7.'I~~ -1.':' I;.,-i) Y'A1iOO!~ ~ - , '. oct,c':_:,;, -~{, i I i ~ 1i;;. '.' (; 0. :i:;rlE-V"f 'f ~ -- Uf; R - 'Ver n , c, 'T'd ~lil'-."~ c#"~ ' \" ~ r/> ~, r-.' ~ _ ~"C' 1"" + ~,... .\;1('_h:lnZ'f' ~_!: ..:;, C \ .~-)o ~, ?-_ 'r'~... ' \]'-, ,"" ~ '/JF.'r;,o,,'" ',(~r. .er.., '~, 4t:1~ !;of... .. -0, SiiilOh ell "6 Q: Ql N' c ii ~ ':::Un _ 8/"" .-<~ ~~~.. '.., '~ ~.,_ft 192005 Yahoo! he .. ,-~ ~2004 NAVTEQ 4 At the time of the submission of this application, the portion of the property designated for construction of the La Quinta Inn & Suites is unimproved real estate. Located on the same legal description, Ullah Investments, Ine. has recently constructed and opened a Shell Service Station and Convenience Store. lAgal Description (exhibit B - Tax Abatement Application) River Square Unit 2 Lot 5 Block 8 2.3 acres. The following is a copy of the data sheet for the property from the Nueces County Appraisal District Fl2Q2ll18 ',,>."-'jf,' , ~;:'E.~r t!:t 1='.Jge f CI ~ lAJ...AHINVEST\tEN'!'S:44C (OOO1Z14€~ A:lIJ AYEItS CCI'tPUS CHR.,~ij -x 7~J1: R~ SOL'ARE lJ~iT 2 L T 5 f1K a 2 :!O .ACS 225124 \11~~' IH-!7 . M~<!:NZ'! ~ "--'--~t.',AA~t JlfJ' . '%r#~::~ !~~ii~' OlIJ. HOSP N. GNU. _"IC. 0 Rl'M. SF 2005 2tIGC 2GOS 2Gf2 Jrcn:,\~ ImpHS Imp NHS LJrn1 hS Land NHS A. W'.1 A. U.. TIm Mlc1 T1mVt6 t-!$ cap Attus.'id ;j22:; 12~ 5.:2:,12.. S::::::;, U.J 5:1= 1;:~ .. ~ S9!l1r_ Jl_.:..... ,.:._~.l.:..o'J ;:l=l:;:- ~~;. ~":.-J,:.!.. ::.,....'.J ~~.::..2t()' ~C.'t';"2C.j.; ))C:~5:C'-f2~ 'N'( 2JC'~:3"::8- :;:',\;[ ~K '2W.. ~7"-l'2C:O: ..2'JC~::l25'7J.:':TC :'JC-O::3~- J:,.'cC:i'.' '.:};~:1..?S- 's-s.",.( :...s,L""..c:_ =_L" ~t,C- ::;;::...~::: E _\..3"':; R,'::'S-~U?...,}," T: _J:-: ~,-3"'S .::.:.fE-"::'"lA:. :'J '~"':"';9 t1e"':':1~O~ )~;::= 12.:1 :.:;:=.12~ 5:.2':.12.:1 3:2~ , 2.t .!!='or1ng lml!Rl"~~/llS~ -- - V_1llIII Ell VAl, 'Ill.. UN IIIrkll Ag'..-a:~ -:::'--'-e-c.:;j _Jr-:) La Quinta Inn a Suites Franchise Agreement Ullah Investments, Inc. has obtained a Franchise Agreement with La Quinta Franchising, LLC a Nevada limited liability company for a period of 20 years from the Opening Date of the FadHty. In accordance with this Franchise Agreement, the Company has Territorial Protection from La Quinta Franchising, LLC for an assigned area of a four-mile radius around the proposed Fadllty as shown on the following map: 5 COIpuS Chnsti TX Assigned Area ~ o.L;. "" .. ;'orpU5 ... ~'1 ~ Ch,;stl l~' l.i" ,,~, ,";..;;::';:j 0_>'-- .~~" '-',~""""'''' ,,' , ""'"ed/,,:: i~ma:t;:m.llj~por. , , \ ~-~ -','-~::- -~::_'~-:"::_---:l~-:--':-:-----: LA QUINTA CORPORAnON La Quinta Corporation is one of the largest owner/operators of limited-service hotels in the United States, with over 65,000 rooms. Based in Dallas, Texas, with 9,000 employees nationwide, La Quinta Corporation owns, operates or franchises more than 590 hotels in 39 states and Canada under the Baymont Inn & Suites, La Quinta Inns, La Quinta Inn & Suites, Woodfield Suites and Budgetel brands, Enjoy consistently clean and comfortable guest rooms and suites with many of the frills you would expect at higher priced hotels, such as free breakfast and refreshing swimming pools, all at some of the most affordable and competitive rates anywhere. And because we value your input and want to keep you coming back, we continually upgrade and refurbish our properties with modern amenities and useful services that you request. Whether traveling for business or pleasure, you will find a dedicated staff, and comfortable, affordable and conveniently located lodging at any of the La Quinta Corporation brand hotels: Raymont Inn & Suites, La Quinta Inns, La Quinta Inn & Suites, Woodfield Suites and Budgetel. 6 FRANCHISE OPPORlUNITES The La Quinta Corporation is one of the largest owner/operators of limited service hotels in the U.S. With its La Quinta and Baymont brands, La Quinta Corporation now owns, operates, or franchises more than 590 hotels in the U.S. and Canada. Since beginning its franchise program in 2001, La Quinta has been one of the fastest growing hotel companies. With the addition of the Baymont brand in the fall of 2004 that growth promises to accelerate even faster. KEYS TO SUCCESS · Commitment to relationships with our franchisees, ''Promises Made. Promises Kept." . Focus on the guest · Strict Quality and service standards . Strong support systems · Owner/operator culture with more than 35 years experience in managing successful hotels TWO OUTSTANDING BRANDS IN STRONG SEGMENTS La Quinta Corporation now offers franchise oDoortunities in two of the strongest lodging segments: La Quinta Inns and La Quinta Inn and Suites . Positioned in the upper mid-scale limited service segment Baymont Inn and Suites . Positioned in the upper economy limited service LA QUINTA INN & SUITES Go ahead - stay a while! You will feel right at home here. That is our philosophy at La Quinta Inn and Suites, designed with longer visits in mind. Whether you choose a standard room, king room, or a two-room suite, our comfortable, attractive rooms include the following amenities: · Free high-speed Internet access (some with wireless) 7 · Televisions with premium channels, movies on-demand and video games · Dataport telephones with voicemail and free local calls · In-room hair dryers, coffee makers, irons and Ironing boards · Desks with welHit workspaces and swivel-tilt chairs Business King rooms also feature: · Oversized desks with convenient built-in dataport and ergonomic chairs · Two telephones - one cordless and one with speaker capabilities · 32-inch televisions, premium channels, movies on-demand and video games · Microwaves and refrigerators For longer stays, our spacious two-room suites have even more: · Separate sitting and sleeping areas · Comfortable recliner or Sleeper sofa Other exciting amenities for our valued guests include: · Complimentary continental breakfast and USA Today newspapers · Private guest laundry facilities · Fully equipped fitness centers · Swimming pools · Private interior corridor entrances · Meeting facilities · Special guest laundry facilities · Children stay free in their parent's room (ages 18 and under) · Airport shuttle in some locations · Pets welcome · Returns Program: free membership into our frequent stay program · 100% Guest Satisfaction Guaranteed A personal copy of USA Today awaits you daily at our lobby breakfast bar, along with a delicious complimentary continental breakfast including coffee, pastries, yogurt, cereals, fresh fruit, and more. Our hotels are conveniently located near all favorite area attractions, restaurants, shopping, and entertainment venues. Book your room today at La Quinta Inn and ~. 8 Construction Plan ,,,, .. '" "GllJElAoL 1OiS1Of:-'-M,. W" I'f\fACfR5:'UlORPI.>>o "".; tNACSECCl()fLOORf'lA\ ...',Ir("'lfRrrl1lOFlf\..... 'lRSfH..OCJISAHrlIIRrWIo.STt.,ilIfj';'fJII SECCtlO.IrHO~I'l.O(J;lWASlfWJ\n. <RSTFl.OOflClOWUOCWAT1':Ro\Ir(l~ SHXEIN.:J1ltAOFlOOlloctlESTCWl.T"f: ~.'L':~"-~ dioCTRD. 'ilrtl'l.N; ~1GHT1lG PilST FI.IX>>I nHrJ!(;s,GalDF\.tO I'1H11f.fjT'lll<:OfHJ(~ .2i{" ~ ''''--c,RG(ili'\NII5.WTMYW,l,ono.M/,,11 i-MARGHlP,_OIN D(J,l[sw l'I"'nF ilK"J'~~ ;o\3l%c,""/.;o., ~::~~; ~fil'_',,;,-OOll "DWEIlg;,o,cft.O(J; ~~~00R~i'_" :~;~~;;:~~,;; -fi~ flD'!<l S!'Euo.'. .~ ""'. (,' ',"~>' 1l!:2 Inn dIlel i!lU~~TL J'F\.\S .u.ltUl i ,,:If4l::AL'l-:lON'-t._.~, 'L".'lGE~ ,- i::.JRICAl ROOY~ '::j~ ,'t_~E'~ '~7RlCJ.l~"',T" ",*,'.5Ciit.- , ;;''EX.. The Company has retained the services of Total Design Four Architects of Corpus Christ, Texas and produced a complete set of working and architectural drawings to being construction of the project. The site plan of the construction is as follows: J~ lj.~~~~~} 1 - -,',' L J,m!~T~, I~, t;j;~",c - !"J'~- .;) , ,n,., 'r' 1",>7__,<< "~.,' '~-, ,.~. -L~L...l ~~ --~1 .ttl -~ i 6. 6. _.L. 1 :~i r-l , \ \ 9 ~[~ II !' () T ,\ Il" S 1 (; '" ~' Ij [! f( ~~~..~ The planned facility consists of a three story building containing 66 suites, reception lobby, breakfast room, meeting facilities, exercise room, pool, Jacuzzi spa and Porte cochere entrance. The 66 suites include two room suites, extended king suites, extended king suites with whirlpool bath in accordance with the following plans: First Floor Plan ~ " \ f I, ~ I i j I I ..nJ1'.'.~J~T~G..IC~[ '. ~j "rJ~ ,;', ~ jL'(~i'l > '~!L ~J'( ~ ,"_Jt_' ,. ,t '_' [1 " f-Jr ..' ,ll-' ,,~' ">I<.r 4'jl[:-=--~.r':T;/"C.-~-:~-=:\ II ()".l.T....][) GDl--'x:> I,' .(t, b -, I ," ~.n ,iu....-ii i,,! I i I pmiiffii .li JI;JJ'f=J I L I' _ I m I' i',' ._':..tL, 'n ~. t _n.~ j_~."'"~;, if Ii~' ~ l w 10 - second Floor Plan - I 11>. .@ (i)~~fI: ""' ~ -i;:--- 6. ~ ~:'~ :;~NG' FLOC., PL,6,>< Ii) ~-..' I ....~."I'i- " " if '~~-' '~-~:' I i-r-~~~L~ '1-" : , i j , " ~ rl ~ Ii"'"! ' Cr' ~ "" ~. ~ I I .. ,1 ~, "-lf~r , gg:' ,,'t-.Ji~) ;. (, -. D (-- .~ J:r '--h~~I b-\C'lo 'J/~, !Z~IW " c:-crJ~d J" J:: b~~/'.'M~~~t~ +1' j "" ill !"..,>. l~ " "~~ <R> 1 11:~ ~ ITTiT1'.'ElJ IT'I="" l '1',' Third Floor Plan l;>~ ...- ..--~.~..... I..~~ (="""~ i 'I I: I 6- ., I' I "'"" I I~'~ I ~,. ".(L..E =4'r:1~ j. CClI~. -r')..t,(~~~. ,- i "--(1~ /.~ .,~ 'D" .,., c." ,V . " - /. f'~~ ',"., '" < , t "'-'."i>::~ ",,1__ -,-~.>._. J~"'-.c_,:=:.'_. ';, '.,' .-,j,...,'__,}-~,___-=__Jc.i ~--:y--"'" "_'''1''''-~ i c""""l.. "~ " -<--4 t=:ll,.' , "",~V 7; -' ,', ", I,.. j' ,J CCJ,.,:=L)..,. '.' q=:1LC..17) :- ')1 /C' 1/;"ilP '; ! , >; \t --: ~ ;;'~_ .L '-J.'~.';'!,"",f~C\')0 '~5S1r/7{. 'T"" ". F-}.?'-;J....f2'~r...\~.' '1t:':r : ?1IC1rcn COlt ,'. f; , .,!- " I ' : I'. ",\,0) ~L IJ.. J~~J.:~f .~ ,," ~~ r ....."__~___..:.:t' ~'_ .l...L On .'R~-=--' _~_ :..._:;,;z ::. ..t'"-:a.~~' '" "~+r:r j "I' \..Vb .-"r- ... """~ "'L'-~C'JI.- iIr"-~~ ! '-- ~ ~.-j A-". ,.., ) 1 Construction Budget. Schedule The total projected construction cost for this facility is nearly $3.6 million dollars as reflected in the following schedule. Construction is to begin on August 15, 2005 with a compfetion date scheduled for March If 2006. General Requirements $ 251,825.00 Sitework $ 179,875.00 Concrete p_. ____ .. $ 467,675.00 Maso~____ $ I 38,519.50 MetaL.____ $ . 251,825.00 ~OOdS & Plastics $ _____ 55,802.90 fl-hermal & Protection $ 58,128.02 :Ooors & Windows _.. +;- . $ -I- 113,930.93 lE!nishes -_. . ._ffi- 575,600.00 ISpecialties__ . _+~_.___ 24,646.28 ~~~i:~~~~stru~~Q~-t-i_+___PP.. ;~~:~~~:~~ iEI~ctricai-- ~==+~i1:=:_:.-~-___~59,618. 71 I --+. ..J.---- ~=:: t :ij:=-.___ [Grand Tot?ll. Eq.pment Budget In addition to the construction costs, the Company will purchase in excess of $550,000 of furniture, fixtures and equipment in accordance with the following schedule: Furniture and Fixtures Bedding ______.. _ Housekeepi~..9. Laundry Com~ter System~_ ele hone ----- ~-_.,- Cable 386 750 55 250 33 150 27625 22 100 16 575 11 050 $ 552 500 12 New Jobs Created As a new facility, the Company will generate 26 new jobs with and annual payroll of nearly $330,000 in accordance with the following schedule. j--------------- ! Job Classification ,----. _____ Number of Estimated Houri Job Title FTE Positions Wa e r Job Estimated Annual Wa es Man erial Man erial Clerical ,Service IService _ ~ervice 1 2 10 10 1 2 $10.00 $8.00 $6.00 $5.50 $6.00 $5.50 $20,800.00 $33 280.00 $124,800.00 $114,400.00 $12,480.00 $22,880.00 'Total t ~=~=- - $328,640.00 Revenue and Motel Tax Projection Based upon an average daily rate and occupancy of 75%, the La Quinta Inn & Suites projects to pay nearly $190,000 a year in Corpus Christi Hotel and Motel Tax as reflected in the following schedule. Number of Rooms 66 Average Daily Rate (ADR) $65 Occupancy 80% Annual Revenues $1,252,680 Hotel and Motel Tax $187,902 o.crtption of Developer Ullah Investments, Inc. has been organized to develop and operate the La Qulnta Inn & Suites. The primary driving force of Ullah Investments, Inc. is Aman Ullah whose dynamic 23- year career reflects pioneering experience and record-breaking performance in a variety of 13 industries. The U.s. Small Business Administration recognized Mr. Ullah's achievements naming him Small Business Person of the Year for 2001. Especially noteworthy about Mr. Ullah's accomplishments is the fact that he arrived In the US from Pakistan in February 1982 and began working at a gas station at an initial wage of $2.35 an hour. From this humble beginning, Mr. Ullah's dedication to excellence in client service and work ethic has allowed him to expand his operations and investments culminating in the development project at this property for a Shell Service Station Convenience Store and the La Quinta Inn & Suites for which this Application for Tax Abatement is being submitted. The following is a summary of Mr. Ullah's professional career: AMAN ULLAH I)HESIDENT OF AMAN'S JEWELERS 1-1:1."\ '\rt-HlIlt \bnagcment . Ne,"'" 8usiness lJevelopmen1 Direct Sales PHOFIII )\ tllll\. ' \ j' ...:, lr:,:cr relic....:: ng piUlll"l'rillg l'XpCrl~'ncc and record '1!l kln~ i'crl,' llldllcC:: tllC jc\\cll\sale," Indus!rv RemaltllDg on the cutting 'IL d,-'\ d.L i-!i>lliIS, through ill'" cUiti!1lJerS and e\uhlishmg strategic 'I' J kidt..'! rt "\I1shlp:-, 1\, illcrl'ilS(' ;l'\'cnlll' \~I -11:1 ,jl,lll'..;catcd Il'\\eir:' ;a;("; ,lI1d \d~l kn,:\\-k'dg~ or Inarketillg )' \ ()f f""n,dl!\.''''; , ,,'ccss itl hUII,:mg and ll1allltainillh relatiOnships with lIT' \r.lh' ..kcisiull lllakers, c.:';lablishing larj.~l:' vnlunlc high profit Ie,' un' olcellcnt kvch ol'r,',,:nliun and j'lyalty . I \.l':.:'11\11 \\:.]\ \ir~,Hlj/,-'d \\Ith d 1Llck recur'" that denlonstrates d 1.1 ,-'rc:it~' ~1t)(.11 I\I.,'!( ~H_'h:~' l: I~,,)th persona! and Tl);)',11 "\;-] PROFFS"IO','d EXPI,IUI'( I J'ls2 III PH'Stllt \man', ,/t'" de,", Cnrpu, ( hristi, Toas PRf"IIlI" I I'\,'clll" <lm','i ",I", tilr 4 }l'",cln storcs targetIng our Corpus Christi marKet Intl'rlacll1g daily With other Il>p level execul1ves, negotiating top dol Lu l:,.ntrach ,md coordinatll1g implementation, \1anage the jewelry :J,~ sl,lI\" dhi (lI,'he',trate rrolcs~ional sernces and resources, '" ~t'\ \Chh'\f'nlrI11li .1<" I 11'~' \nilcd ill H"ustO!1, I exas and hegan working at a gas ):,:iliun .jt ~i 11'\\ rate nf $2..,5 pel h~ll1r. 14 -Sept 986 rraveled to Corpus Christi, Texas on weeket\ds and began selling clothes wilh ver}' little inventory. .Sept 1989 Opened ,\man's lewders 1\1 the Corpus Christi Trade Center .JW) 1 '-192 Fxpanded blJsincss and opened Aman'c; rewders in Sunrise MalL .) olv 995 Created U Hah Hmtllers, In~, This cofll<>ration tllcJudes 4 lewelry ~lures with gross sales of S209, 74900 e:'-epl 99h Opened () conVClllerH:'e stores ITl Corpus Christi. Texas and surrounding are<'18 . \ug Y9Li .\ Ikr a ln~mcndous opportunil)' !Ii Padr~~s Swplcs Mall, opened Aman's lewden; sUITpllssing all sales go-als, relched ~fll!;S salc.s of$539?370.00 in Sept 200,t .( ~ll il}1 Opened Motel 6 in Smtoll. [,'XRS .~~.> OO~ Surpassed personal goals Lii Quml<l Motel is now under L"I\<.tru-Uillll llnd wil! C.lpCIl 1mcr tJllS Vtill :L!I..l !i,~~' Ip ~'..\TUXh.J II~an /\..lltunicl d~id :'\',Loo;lin nHir~:('ts r ,xCII,I!d 'r' '-~i'IYI'>: )It:~. ',',:! l'll1'iider:.J!' !r~ lur ~.h{,~ c,,-ddc!"J'f1!: T.!~f"!l', 15 RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH ULLAH INVESTMENTS, INC., PROVIDING FOR TERMPORARY PROPERTY TAX ABATEMENT WHEREAS, Texas Tax Code, Chapter 312, authorizes the City of Corpus Christi, Texas ('the City") to enter into Tax Abatement Agreements for projects meeting the guidelines and criteria for granting tax abatement, as amended, duly adopted by the City; and, WHEREAS, the area covered by the attached Agreement is within the Renewal Community and is therefore eligible for tax abatement in accordance with the provisions of the Act NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds and determines that the terms of the proposed agreement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City, and the City further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the long-term benefit of the City SECTION 2. The execution of the Tax Abatement Agreement Attached hereto in substantial form as Exhibit "A" is hereby authorized and approved. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED: May 23 2006 By: ~)..lrYJn~___ ___ Ga W. Smith Assistant City Attorney for City Attorney -j. LegDir\gws \agenda\2006\05- 30\taxabatem enUII<lh 2 Corpus Christi, Texas of . 2006 ---^-'-"'-- .,,-- The above resolution was passed by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E Marez Jesse Noyola Mark Scott -; LegDirlgws la qenda \2006\0 5-301taxa batem enl' Ila h TAX ABATEMENT AGREEMENT THE STATE OF TEXAS * COUNTY OF N llECES ThIS 1 ax Abatement Agreement (hereinafter referred to as the "Agreement") is made and entered mto by and bet\veen the CITY OF CORPlJS CHRISTL TEXAS (the 'Governmental (init') and [iLLAH INVESTMENTS, INC (the 'Owner'). the owner of taxable property in the City of(orpus Christi. Texas. Lot 5. Block 8. River Square Unit 2 (the "Property"). I. ALTHORIZA TION This Agreement IS authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas Tax Code. Chapter 312. as amended (the' Act'). and is subject to the laws of the State )f Texas and the charter ordinances. and l)rders of the Gcnemmental Unit. II. DEFINITIONS As used in thIS Agreement. the followmg terms shall have the meanings set forth below: A. 'Base Year Value' means the assessed value of the Imprcnements on the Property as l'ertified by the Nueces Count\' .\ppraisal District as of the January I preceding the executIOn ofthls Agreement plus the agreed upon value of Improvements made after I anuarv ] but hefore the execution of this Agreement B 'Improvements" means the huildmgs or portIOns thereof and other improvements, mcluding fixed machinervmd equipment. Llsed for commercial or industrial purposes l[1 the PropeT1v C 'Construction Phase" means the period dunng whIch a material and substantial nnprovement ofthe Property occurs which represents a separate and distinct (onstructlOn operation undertaken for the purpose of erecting the Improvements. The {'ol1struction Phasl ends upon the earliest to occur of the following events: , j I when a certlfi,~ate ofoi:cupalll:v is issued t()f' the project (if within City limits); or !2) when commerl:lal proc!uct](ln of a pr(lduc! or prO\isiol1 of a service is achieved at the hclllt\ 01 ( ; i when the archItect or engineer supervlsmg construction Issues a certificate of suhstantlal completion. or some similar instrument. or HLegDir/gws,fcoDev Tax "'-bate! 11IahRenC\\(', 'nlll1 Page 1 of U (4) two (2) years after the date of this Agreement. The determinatIOn of the end of the Construction Phase shall be made by the Governmental l nit. in its sole and absolute discretion, based upon the above criteria :md such (Ither factors ,IS the Governmental Unit may deem relevant. The determination 01 the end of the Construction Phase by the Governmental Unit shall be ,:onclusl\ e, and any judicial reView of such determination shall be governed by the ~ubstantial e\ideflce rule I), "Abatement" means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes pursuant to the Act F. 'Eligible ProperTY" means the buildings. structures, site Improvements, and that office 'pace and certain personal property necessary to the operation and administration of the Facihty to be constructed pursuant to this Agreement. A list of the Eligible Property IS set f(lrth in the Project Description which is attached hereto as Exhibit "A" ,md made] part hereof During the Construction Phase of the Eligible Property, the ()wner ma)- make such change orders to the Eligible Property as are reasonably necessary to acc'lmphsh its tntended use, prO\lded that no such change order may be made \Vhleh will change the qualificatiOn ot the project as a "Facility" under the ( ,uidehne:-. and (riteria l(lr (Jranting Tax i\batcment approved by the Governmental I mt f "inehglble Propel1y" means land: im e11lones. supplies; tools; furnishings and other fl 'nns I)f movable personal property: \ehlcles; \'essels: aircraft; housing; hotel 3lcommodations, deferred mall1tenance II1vestments; property to be rented or leased except as rrm Idee! in Section 2( e): improvements for the generation or transmission of electncal ~nerg) not \\holl) -.:onsumed hy a New Facility or expansion; any Improvements, including those to produce. store or distribute natural gas, fluids or gases. whIch dre not integral tl) the operation of the Facility; improvements to real property which h,lve an economIc life of less than 15 years: property owned or used by the State of l\'xa., or Its politllal subdiViSIOns or b\ any ,)rganization owned, operated ()! directed h)- a ;)olitIcal subdl'Vlsion of the State of Texas; unless any of the above t\ pes of prope!1y Ire speclficalh duthorized hv the Govemmental Unit. (I "'\dded Value' means the ll1crease In the assessed value of the Eligible Property as a result of "expanSion" or 'modernization" of an existing facility or construction of a 'new faciht)" It does not mean 'lr include "deferred maintenance," H 'TacilJty" means a Basic Manufactunng or Service Facility, Regional Distribution Center Facility. Regional Tclecommul11cations!Data Processing Center Facility, Regional ViSltOl Amusement Facility, Central Business District (CBD) Residential Facility, Renewal Communitv Facility, or Petrochemical Facility approved by the Governmental Unit as set fl)rth in the Guidelines and Criteria for Granting Tax ~hatement adopted by the GO\L'rnmental1 Jl11t Ii LegDir/t:w, l'coDe,] a'L\hatt' UlIahRenc\\'( "f1!!]] 2,f ~ fhe GUIdelInes and emena for Grantmg Tax Abatement adopted by the Govenunental Unit are lficorporated as a part 01 this Agreement. Except as the same may be modified herein, all definitions set forth therein are applicable to this Agreement. III. PROPERTY The Property IS an area wIthin the ('lty of Corpus Christl, Texas, located in whole or in part within the Jurisdiction of the Governmental Unit as is more fully described in Exhibit "B" attached hereto and made 3 part hereof. Said Property is located within a zone for tax abatement established pursuant to Chapter .~ I~. of tht' Texas Tax Code, as amended, by the City of Corpus Christi, I c"as The N ueces County Appraisal Distnct has established the following values for the Property as of the January I valuation date prior to the date of execution of this Agreement. Account No. nJa Personal pnJpertl ~)li a Account No. }Z2Y20 18 i and impnJ\"!1I(,n!. $225,[24 ~ .300.00(j [he GO\ emmental Umt and the Owner agree that the value of any additions to the Improvements made after January! !jr not otherwise rdlected on the above valuatIon of Improvements is: A.dditional Impro' ements $0 '\ddition anhe above amount to the valuatIOn of the Improvements as of the January I valuation date prior ttl the date of exe-.:ution of thIS Agreement results in a Base Y ear Value as follows: Base '{ear Value: >i;1.300.(IOO IV. TERM OF- ABATEMENT AND AGREEMENT The Governmental I inn agrees 10 abate the ad valorem taxes on the Eligible Property in accordance with this paragraph and paragraphs V and VI hereof. The Abatement shall be dfective with the Januarv 1 valuation date immediately following the date of execution ofthis '\greement The Abatement shall continue !()r up to two (2) years during the period of the ( onstructlOll Phase and it)r rhe next three (3) full tax years thereafter. expiring as of December3I \tsuch thm! tax year lhhe penoel of the ('nnstructlOn Phase exceeds two (2) years, the Facility ,hall be cdnsidered completed for purpose~ of Abatement, and in no case shall the period of '\batement ll1clusive of comtruction and completion exceed five (5) tax years. The years of \batement provided herein shall in each instance coincide with the tax year commencing on January I and expinng on December 31 and in no event shall the Abatement extend beyond December .~! of the 1ifth tax vear This\hatement shall also cover as Eligible Property those HLegDlr/g\\:- FcoDe\ Ta\Al>ate i JllahRen,O'.d 'mm hwe 3 ()r i supplemental improvements to the Eligible Property that are added or constructed during the post-construction three (3) year period of Abatement. In no event, however, shall the total c\batemem period for such Eligible Property exceed the maximum five (5) year Abatement period tor the entire project as specified herein. The tenn of thlS Agreement shall continue for a period of five (5) years following expiration llfthe abatement period. All terms and conditions imposed upon the Owner shall continue in effect dunng such period, Jnd the Owner shall be obligated specifically to continue the minimum employment levels specified herem, Any default shall be subject to the provisions of Article VIII h ereo f. \', TAXABILITY During the period that the Abatement is effective. taxes shall be payable as follows: (I) The value of the land comprising the Property shall be fully taxable; (2 )fhe Base Year \ alue ('1' existmg Improvements comprising the Property shall be fully uxable (3) The \aluc ,)f Ineligible Property shall be fully taxable: and (4) The Added Value of Fliglble Property shall be abated as set forth in Part VI herein, \' I. AMOUNT OF ABATEMENT The Abatement pwvided by this A.greement shall be based upon (for a Renewal Community Facility) f(lr each created one (1) new pennanent full-time job per $50,000 of Added Value to a property following the completion of construction and maintains the same level of employment for the term of the abatement agreement. the percentage of tax abated shall be in accordance with the fdlowing ....chedule ConstructIOn Period (not tll exceed 2 years! Year Year Yedr Eercentage of Abatement I 000/0 750/0 750'0 00/0 In (lrder to be counted as a permanent job under thiS Agreement, the job must be a full-time pOSition providing regular \vurk schedules at least 35 hours per week. For compliance purposes, the determination date shall be January I of each year commencing with the January 1 following the date of completion of construction. The percentage of abatement prcl\ided each vear under this Agreement shall he based upon the employment information H'LegDir .>!\\~. Ee(lD,'\ TaxAbak UllahRene\\ (i!l1111 i':we 4 of ; as \)t January I of such year As a result, the actual amount of abatement may vary from year to year based upon employment levels and property valuations. Note: if thIs project is deSIgnated as a "rehabilitation project" under the Guidelines and ('riteria \-vhich involves the adaptive reuse of an existing structure or building for a FaCIlIty, the project must lIlvolve a minimum capital expenditure of $250,000. The rehabIlitatIOn project must involve the adaptIve reuse of an existing structure or building currently on th\.:' property tax rolls so that the Base Year Value associated with the project wi]] II1clude both the value (if the land and the eXlsting improvements. The Owner and Owner's landlord..;pecifically disciallu any abatement for improvements to the building, and the ,;ovenants and ob] Igations hereof shall not be binding upon Owner's landlord. The sole ElIgible Propel1y subject to abatement shall be the value of personal property such as turniture and ml lvablc equipment installed by Owner which would otherwise be considered IneligIble Propert) for any other type of abatement category. In no event, however, may the total \ alue of such personal property subject to abatement exceed $1 million.] At the time of executIOn of thIS Agreement the Owner reasonably estimates and represents to the (iovernmental I 'nn that the Added Value comprising permanent Improvements upon ,'ompletlon of the Construction Phase shall be: (>JJ.\}!).C!OO ,"Estimated Added Value"! In the event that upon completion of the Construction Phase the Added Value of permanent Improvements. as determined by said Appraisal DistncL shall at any time thereafter during the period c.t Abatement be less than eight-tive percent (85%) of the Estimated Added Value, not due to Circumstances beyond the control of Owner. the Owner agrees to pay, as additional taxes hereundtT. an am\)Unt equal to the then current tax rate of the Governmental Unit applied to the chfferen\:e betv,een the Added Value from eighty-tive percent (R5%) of the Estimated Added Value, multiphed bv I O( 1% minus the net percentage of Abatement provided under this :.\greemcnt For the purposes of this prO\lsion, the term "circumstances beyond the control of Owner" shall include casualty losses, national economic tactors. shutdowns due to governmental regulations, strikes, acts 01 war: and the like. The fomlUla for calculating such additional tax is \utlined as t()lI(\\\ s Tax Rate) x [n~)oo of Est Added Value - Actual A V) \ (lOO<;;o - Abatement%)] = Additional fax. VII. CONTEMPLATED IMPROVEMENTS The contemplated Imprnvemenh are set forth 111 the Project Description attached as Exhibit . A:' During the C onstructlOn Phase. the Owner may make such change orders to the project as are reasonably necessary. provided that no such change order may be made which will change the qualification of the project as a "Facillty" under the Guidelines for Granting Tax Abatement approved by the Governmental Unit All Improvements shall be completed in accordance with all tpplicablc laws. ordll1ances. rules or regulations, During the term of this Agreement, use of the H LegDlr!t'\\S f~c()De"1 :1\:'\ hate lJllahRenewC \)ll1m ~'alle 5 Ill' Property shall be limited to operation of the Facility described in the Project Description consistent with the general purpose of encouraging development or redevelopment of the zone during the period of thIs Agreement Owner represents and warrants that this project will add at least 26 additional permanent or full-time operating or contract employees to the project site. The current estimate of employment upon completIOn of construction IS 26 The project is not expected to solely or primarily have the effect of transferring employment ham one part of Nueces County to another. VIII. EVENTS OF DEFAULT AND RECAPTURE A. Failure to Commence OperatIOn During Term of Agreement. In the event that the Facility is not completed and does not begin operation with the minimum number of 26 permanent Jobs by the January I following the completion of construction, no abatement shall be given fl.)r that tax year. and the full amount of taxes assessed against the property shall be due and payable for that tax year. In the event that the Owner fails tt) begin operation with the mimmum number of 26 permanent jobs by the next January J then the abatement Agreement shall terminate and all abated taxes during the period (l f construction shall be recaptured and paid within 60 days of such termination. B. Discontinuance of Operations During Term of Abatement. In the event the Facility is cnmpleted and begins operation with the required minimum number of 26 permanent Jobs but subsequently discontinues operations and the minimum number of 26 permanent .lobs i~. not mamtamed on any January] during the term of the Agreement atter the completHlll of constructIon. fl.)r any reason except on a temporary basis due to fire, explOSion or other casualt) or accident or natural disaster. the Agreement may be terminated hy the Governmental Unit and all taxes previously abated by virtue of the Agreement shall he recaptured and paid withm 60 days of such termination. C Qehnquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent and fails to tImely and properly fl.)llow the legal procedures for their protest and/or contest thIS Agreement ..,hall temlinate and so shall the abatement of the taxes till' the calendar year of the dehnquency. The total taxes assessed without abatement for that calendar veal' shall be paid within sixty (60) days from the date of termination. Penalty and interest shall not begin to accrue on the additional amount of taxes due as the result f recapture under thiS pnnlSlon until the first day of the month following such SIXty (60) dJY notice. at ,,'hich time penalty and interest shall accrue in accord \'Ith the la\vs of the Stale of Texas. Penaltv and interest on the amount of taxes onginally levied hased upon the Abatement shall, of course, begin to accrue as of the date such taxes \vere due in acc\)f(l with the laws of the State of Texas. D. ~otice of Default. Should the (J(lvemmental Unit determine that the Owner is in default according to the terms anc! condItions of this Agreement, it shall notify the Owner that It such default is not cured wlthlIl sixty (60) days from the date of such notice ('Cure Period') then thi~ Agreement mav be terminated. In the event the Owner fails to cure f 1. LegDir .:2W, FcoDevTaxl\ batt UlIahRellew( Cl11In Page 6 of '\ SaId default during the Cure Period, this Agreement may be terminated and the taxes abated by \'lrtue of the Agreement will be recaptured and paid as provided herein. L 6ctual AddedValue. Sh(luld the Nueces County Appraisal District determine that the total level ot Added Value during any year of the term of this Agreement after completion of the ConstructIOn Phase is lower than the Estimated Added Value such that a lower percentage )f \batement ]'1 applicable, t()[ each year during which an Abatement has been bryanted the difference between the tax abated and the tax which should ha\1.:' been abated based upon the actual Added Value shall be determined by the Governmental Unit and paId within 6(1 days of notification to the Owner of such dctenninatwn Penalty and interest shall not begin to accrue upon such sum until the tlrst day of the month followmg such sIxty (60) day notlce, at which time penalty and mterest shall accrue 1I1 ac(ord \\1th the laws (',fthe State of Texas, F, ReductIOn lI1 Rollback Tax Rate. If dunng any year of the period of Abatement any portion of the abated value is added to the current total value of the Governmental Unit but is not treated as 'new property value' (as defined in Section 26,012 (17) of the Texas Tax Code) for the purpose of establishing the "effective maintenance rate" in calculating the 'wllback tax rate' lI1 accord with Section :26,04 (c) (2) of the Texas Tax CJde and If ltle Governmental Unit's budget calculations indicate that a tax rate in excess of the 'rollback ta:>.. rate IS regulJ'ed It) fund the operations of the Governmental ( I1lt tor the sue\. ceding/ear. then the Governmental l fnit shall recapture from the ()wner a tax lD an amount equai to the lesser uf the follovymg: ( I) The amount df the taxes ,lbated t<n that year bv the Governmental Unit with respect to the Propert'. 2 I The amount obtained b)subtractmg the rollback tax rate computed without the abated prupel1y value bcmg treated as new property value from the rollback tax rate computed WIth the abated property value being treated as new property value and multiplYlOg the difference b) the total assessed value of the Governmental l nil If the (;ovemmental U nit has granted an abatement of taxes to more than one taxpayer, then the amount of the relapture calculated in accord with subparagraph (2) above shall be prorated on the basl s olthe value of the abatement with respect to each taxpayer. This e\ ent shall not constitute 11 'detault' under thIS Agreement. and the sixty (60) day Cure Pennd provided ah(>ve shall nol appl). Such recaptured taxes must he paid within thirty (30) day:-- arier !lobCt: lht:rect'has been gl\en to the (hvner. Penalty and interest shall not begin to accrue upon such sum until the tirst day of the month following such thirty (30) day notice, at \V/lldl time penallv and II1ten'st shall accrue 111 accord with the laws of the State of Texas. G C~~lI1tinuatlOn of Tax Lien. The amount of tax abated each year under the terms of this -\greement shall he secured by a first and prior tax lien which shall continue in ex lstence Ii'om \ ear to veal' until such tlmc as thIS Agreement between the HLegDlr/gws [coDe\ I aXi\i1ate UllahRen<:\v( "!Tlnl Page 7A J (lovernmental l nit and Owner is fully performed by Owner, or until all taxes, whether Jssessed or recaptured. are paId in fail. In the event of any det~lUlt by Owner, the governing body of the Governmental Unit reserves the right to terminate or modify this Agreement. Owner shall be afforded written notice of such default and the opportunity to cure as provided above. If Owner believes such action was Improper. Owner may file an appealm Nueces County district court within sixty (60) days after written notIce of the action by the Governmental Unit. Owner shall remit to the Governmental If nit. \\ithm such 60-da:, period an) additional or recaptured taxes levied pursuant to the payment proVisions of Te\as Tax Code 0 42.08. If the final determination of the appeal increases Owner' ~ lax liahilltv abo\ e the amount paid, Owner shall remit the additional tax pursuant to fax Code ~ 42.42 If the tinal delennination (If the appeal decreases Owner's tax liability, the CJovernmental Unil shall refund the Ov..ner the diflerence between the amount of tax paid and the amounl lJ} tax for whICh ('wner is iable pursuant to Tax Code 9 42.43. IX. ADMINISTRATION Inspections. The ()wner shall allo\\ employees and/or representatives of the Governmental Unit to have access to the Propertv during the term of this Agreement to inspect the Facility to determine compliance with the tenus and conditions of this Agreement. All inspections will be made only after the gi\int! of twenty-four (24) hours prior notice and will only be conducted in such manner as to not unreasonably ll1terfere with the construction and/or operation of the Facility All InspectIOns will be made with one or more representatives of the Owner and in lCcordanc,' with Owner's -.;afetv standard ~ Appraisals, The Chief AppraIser 01 the Nueces County Appraisal District shall annually ,jetermine (i) the taxable \ alue of the real and personal property comprising the Property taking mto conSideration the t\hatement pWVlded by this Agreement, and (ii) the full taxable value wlthoul Abatement of the real and personal property comprising the Property. The Chief '\pprai"er shall rec~\Hl hoth the abated taxable value and the full taxable value in the appraisal records The full taxable \t1ue figure lJsted in the appraisal records shall be used to compute the dmount ut abated taxes that are required to be recaptured and paid in the event this Agreement is Terminated 111 a manner that results in recapture, Each year the Owner shall furnish the Chief \ppraiser \Vlth such mtomlation outlined 111 Chapter 22. Texas Tax Code, as amended, as may be necessarv t()r the administration of the At-.'Teement specifIed herein, Annmtl R~lliJrts. (hvner shall certlt~ to the governing hody of the Governmental Unit on or hefore\pril 1 each year thai the (hvner is in compliance with each applicable term of this \greement AdditIOnally. during the 111llial four veal'S of the tenn of property tax abatement, I )wner shall pltn Ide to the Go\emmenta] Unit an annual report covering those items listed on Schedule I attached hereto m order to document the eff0l1s of the Owner to acquire goods and ...ervices dl1 a local haSh, Such annual report shall be prepared on a calendar year basis and shall he submItted to the (Jc\\emmental !~nit 11\) later than ninety (90) days following the end of each '-uch calendar year. The annual report shall be accompanied by an audit letter prepared by an 111dependent accountll1g firl1l which has re\ iewed the report. H'LegDir ~\h FcnDn I ,lx.\hak UllahRencwi i1n1m hHle 8 "j ~ 'Bu\ Local' Provision. The Owner additionally agrees to give preference and priority to local manufacturers. suppliers, contractors and laboL except where not reasonably possible to do so withuut added expense. substantial 1I1convenience, or sacrifice in operating efficiency. In any such exception cases involving purchases over $10,000.00 a justification for such purchase shall be included in the annual report. The Owner further acknowledges that it is a legal and moral obligation of persons receiving property tax abatements to favor local manufacturers, suppliers, contractors and laboL all uther factors being equal For the purposes of this provision, the term local' ,is used to describe manutacturers, suppliers, contractors and labor shall include firms, businesses. and persons vho resJde In or mamtain an oft-ice in either Nueces County or San Patricio County. In the e\ ent of a breach of the buy local provision, the percentage of abatement shall be proportionately reduced by the amount the disqualified contract bears to the total constructJOn cost teJI the project X. ASSIGNMENT The ()wner may assign this Agreement to anyone or more corporation(s), 50% or more of the outstanding votmg securities of which are owned, directly or indirectly, by one of the Owners. or any partnership(s) or hmited partnership(s) in which an Owner, or a subsidiary of an Owner, IS a general partner. The Owner may assign this Agreement to any other new owner or lessee uf the Facilitv witIl the prior wrltten consent of the Governmental Unit, which consent shall not be unreasonablv withheld <\ny assignment shall provide that the assignee shall Irrevocably and unconditionally assume all the duties and obligations of the assignor and become the Owner upon the same terms and conditions as set out m this Agreement. In the event more than one entIty IS Owner hereunder, the obligations of said entities shall be joint and several. Any assignment of tllIS \greement shall he \0 an entit] that will provide substantially the same Improvements to the Property, except to the extent such Improvements have been completed. No assignnlent shall be appro\ed if the Owner or any assIgnee is indehted to the Governmental Unit for ad valorem taxes or other obligation~ XI. NOTICES Any notice reqUIred ttl be given under the proviSIOns of this Agreement shall be in writing and shall be duly served when it shall have been deposited, with the proper postage prepaid thereon. and duly regislered or certified. return receipt requested, with the United States Postal Service. addressed tel the CJovernmentaJ t 'nit or Owner at the follc)\ving addresses. If mailed, any notice or l'\ lmmUllIcatwn shall he deemed to be received three davs after the date of deposit in the United States \1m {nless otherWIse provided IJ] this Agreement all notices shall be delivered tl the fc)lIuwmg "ddresse~' To the (ro\emmental {nit: CITY OF CORPUS CHRiSTL TEXAS 120 I Leopard Street P O. Box 9277 Corpus Christi, Texas 7S469 '\l!n: ('1tV Manager H LegDir!i!w~ FcnDe\'-' :JXAbat( UlIahRl'IICW('1J11l1 Page 9 of To the ()wner: lLLA fNVESTMENTS. INC. 5220 Ayers Corpus Christi, Texas 78415 Either party may designate a different address by giving the other party ten days' written notice. This Agreement has been executed hy the parties in multiple originals or counterparts, each having full force and effect. Executed this dm at .2006. GOVERNMENTAl UNIT ;\TTEST CITY OF CORPUS CHRISTI, TEXAS 81':_ d______ _ __ Armando Chapa. City Se\.Tetarv Bv: _.._-~- George Noe. City Manager A.PPROVED AS TO FOR \1: By: amJ~rlA.- d 'd' ~. Smith. Assistant City Attorney for Mary Kay Fischer City Attome\ OWNER l LLA INVESTMENTS, INe. Bv: Aman Ullah President H : LegDiri gw~, EcoDn IaxAbateiUlIahRenew("rnm Page 1 0 01 ! ' SCHEDULE I "Buy Local" Annua] Reports The tollowmg information shall be reported to the Governmental Unit on a calendar-year basis dunng the first four years of the tax abatement program: Dollar amount spent tC)f materials* (local) Dollar amount spent tor materials (total). Dollar amount spent tllr labor** (local) <4 Dollar amount spent rllr labor** (tota]) " Number Ilf J,)bs created III the construction project Oocal). (c '\Jumber <lfJ,)bs created III the constructlOn project (total). '\Jumber 'lfjllbs created on a permanent basIs (local) x '.iumber >flllbs created '1I1 a permanent basis (total) * 'Matenals h detined to mclude all matenals used in excavation, site improvement, demoliti\ln. concrete. struct ural steel. tire proofing. piping. electrical, instruments, paintings and scaffoldIng. insulatIOn lL'mporan l'onstruction tacllities. supplies, equipment rental in constructIOn. small toob and consumab]es. This term does not include major items of machinery and eqUJpment nor readilY-dvailable localh ** 'Labor' IS defined t( include all labor in connection with the excavation. site improvement, demolitllln. concrete construction.,tructural steel. tIre proofing. equipment placement, piping, electricai lr1strumenb. pamting and scatt()lding. msu]ation. construction services, craft benefits, payroll burdens. and related labor expenses. This ternl does not include engineering services in connect!\ 1!l with the proJect design. fhe tern"! 'I,lca] as used to descnbe manutacturers, supphers. contractors and labor shall include tlrms. businesses. and pers'ills \\ h(l reSIde 1I1 or maintain an office in either Nueces County or 'lan Patnl"H' Count\ H'LegDirigws!EcoDevTaxAbate UlIahRenewt 'orrUTI Page] I of " Exhibit A Corpus Christi Project Plan vlay 23 .::'1 )06 This project wlll construct and operate a LaQuinta Inn and Suites with more at least 26 positions. fhe site is currentlv vacant Pennanent lmprovements $ 1.300.000 Estimated capital $ 1.300.000 H : LegDir. gws/EcoDev/TaxAbate/UllahRenewC ',>mm Page 12 ()! ] ! EXHIBIT 'B' Ll)t 5. Block /-;, River Square Umt 2. a subdivision III the City of Corpus Christi, Texas, as shown by map or plat thereof recorded in the Map Records ofNueces County, Texas, and being known as \500 McKenzie Road, Corpus Christi. Texas. H" LegDir/gw~ FcoDev"j axAhak. UllahRenewC"omm Page B of .1 APPLICATION FOR lAX ABATEMENT This ijppL'~dIH<J sh,'uid be i lie, pnor I" the: hL'gHll>11lg of COIl~lrudj()n or the lIl~tallatioll or improvements~ The tiling of thh d;\llll!lL'nl dcknm\ ll.Xt~cs 1l[llIhant\:nd ,u:ilnrmancc \\ilh (illlddmcs anJ Cnll:na for Granting Tax Abatement ThIS ;,ppk,llio!, \" III ",,>come 1''111 01 lh, 1:1\ \[,aleInenl ,\grcCmc!11 anJ any knml'mgly false representations will be gh'lIIl'.:' ., ICllillLdlH'f !i" ,\,JCCJlIl.,'lll i)1I:- ipill..'iltIlH:,huldd ht''illbllllttlxll" ilK City Manager, City Hllll, t20J Leopa: d ) i,) ! {()\. ~ ,., ""' Of}; L"i Chns[l. I C.\..l."'; ",\{469 d'or propL~tics inside the CIty liluits) and to the C:onnty Judge; Nt/eel if,lIt ,ur'i ,'I;' ')I !'~"!':H' I ~I!C',; ! pus ( 'hrht! I, "d' 'R40 I (rpr properties in Lmincorporated areas) FOHk Oi FS OF I iii iPP II 10" SIIOI I i) hi I, I VI) WIlli Iln \I'PI<OPkIATE <;( IVJ<:RNMI<:NTAL UNIT, App);" !Ii !i(',t-~nTl' \ Dale / Of> ('4mJpar !'.\"Il \ ,\'l 'AL REPORT Shutter~ \'i.l!l,.a~i,;nl tt.! t"'Urnhi,..1' ilj I mpJovecs Add"",. [',U .13(; ~. \nnual Salt..> ~~ JJJ.'!";I_l.~\~l:~ PrOle, lrHl;:llHf !;h,.'1!'" Hash !'v1;:mtJt~H,'{W-l1\g or ';ef\'I('(; Indus,.... Enk.'"rprise Inm: K~idcnltaJ R\.Xh:\ d(}~'nlcn ,Regional l)i~!nbullon ('I"nn."T Reghm,al \ 'iS1Llf \i'mJ.s~; !'lent i:~L,:;jlr ltl\ ! \! 1 )owntown Revil.1117.:JtlOn Housing Facility , Petrochemical Fadlit \ i Regional Telecommunications Facilitv ,\) Ren<"wa! Communih' Facility Desen It,llH.'L~t'r L"t "r I, IIil\ \, b\ Pl'(i'; Proposn! dc\,dopmcnt ~l1J!ut hq condonUOIW'l pnl.1:..'\...l )cyclopmcnl \l.IHdd h;::in adapti\L 1(:11<'<; of th..: ~"Shut1ers" Building located at 602 Winneh,iHW ~~t.r~.: 'orpu\t' 1uIsh rex.:-- 78401 ~~Ct;: aHach(,"(' Lxhibit pf(i;ect il,'1\\lptH'W c'\ttach 1-::>tll;'11 Hit, aU prop" ,,,,;dntPfO\ 'ffiCfjh kttt::; II.(: page,,) "-!ilk!!l; H l'ul1.' ;;XplJlHUlg the IlToJIO;:l.:L dcs~ribmg lilt: eXIsting HJlt: and improvements. descri.bmg :::stn -nt" an.J pr >, <dHl~' ..1" Hnpnn\'nli~'11t'i and propt:rh for \vhidl loatemL'11t is requested \\ i I. ',<;1," I' 'Ill R'(I \Tl( ,c. Op:::~rati( ,; \ddt.;:::ss ;P!t! }C-';. npl1 60/ Wllm0h.,~p Stfl..':l",1 Jild ;>i,l11';:..1 ;i~1 ~trc:::'; Blol".:k :;, ~~, i <iH110n '11' 1< tp:l: ~ Block (; d, Hlull <;uhdi,,, '. ii \ ,,~g.!J!!!j_tJl.L~t! ),~h~'()! !)I!.;tri..:! , ,U!lli!lL C"hristi Independent ScllOOl District~__ :\U..1ch."1'- !'~"J!lhH H ,H1; Uer 'C; pJ~l " 'f'lpl"! dt;~..:ripll,F' md.u mar ..dll>\\mg prop"sd{1 site Ecotlow it i nl()Il!ul! tOl' ~~bu4;.UQ.H LlStun~J~ 11 \I( lDhRNl/ c\TIO' bmrneth:onn.."-nt D~lk ^:\YzY.~J J ^ )IJ()() F,stlfn~fkd h":OflOnl1l' 11tt: of Existing Plant: years -"onlflk:t.I~;n 1 Jat..:. 'I,!!!llJ'~1 ,11. ~,!X)7 \Jdcd LCOUOtHh.: Life from t\.1odt.wizatioH; yeaI1l Peak COil"rru..:twn jnO:;' : We' Cotal Co~r 01 uftstructlnn ',<)l~j' i ,QililufI")yd1nR<t,,,,!,! ISft!oll"'-'.~l.QU>ui liling and JJY!ill ~!!!~l]1lilim'l""tJ~;;!mJ'l.lJ<~ (tJ] ..) Pemlant:11! Llnpl(lytHl..,'HI '.Jumbcrt j 'f\:dtul P,4GE ."11, ~"U\['P-D!lsc(i \'alu, (n :->11(' 1 <,nl1 Impr .vement' PerSOrlill proreny A~: nt j i P.'Telling \natrmen! \greemenl ~!"~; Jt~ i"J.(I':I~ $U V.alae At,atcd PIOpt-ny d():JII ,3ml' dion ()! Pn'l ~ ...., {~b ; I 'i(lO likl to $12,000,000 $0 V"luc "pun C:Olflpleliod 01 PmJ"'" oj .Iny PlOj.<:l! Prnjec' imprnvCfllP'm< oo~ -~llh'{"'f-l To '\~ar('menl Is. the j; nd; 'lrn~ml\' \mdt~1 agdLultliral~us.e _H <To'! Sp<iCt (\~fnptJOn' )t.~ (): umdll . ;'ax.-, \if:) (179 Qllif'QQZO ()7'j' WOf>OO,7Q Ptl -\'oal Prut \I;U YARl [\1' b. s we LipPi" ant ,eeKlllg ,"",all'. attaclJ >1t' ;equ~ ed )upl,kl:!t::nL iV 11!f{\fi!!:l j.)l i;,:{Vl '(f ,d nIt' 'd.llde!lf (~<) 'Yes ( No (X) If "yes" OTHU~ \BA EME',Jf" 1S till api'llcall' ""Ide ''l)Pdt alPI ll\illCmem of thiS project by another taxing jurisdlc[icn orlearD) loulttie~ Yc~ "" \ If" Ill' '.ide dat'> ,)1' 1pplication, hearing dates, if held or schedule,i '1rtflH' 'url,di, !iO(1, an(! ('1113'" lcd J..-I!ers COMl \ \ RIPRf...'.'\j! ",TI'iE '), Hf 'I) J Ef I N1 j~ , ft'!''; t Nalllt' Title Ii f1~\ ,hme \urf"l C'ompallY Official Addff U Bu.l\ b32,. , QJ}m!> U1I1S(l, I :;glS 7~iQ~ Mi1rk l\.Qilllle, Presidenl _______,___ "ame and Title ot \uthorized Company Official Telepl ,6 ,8S(l -;88' INSTRtJ( IIUNS \pplil am> <11".! posith ,'llSiderauoll and iwilg:hle impn'VI:II,,'lH must mcc :IIC Ie l":rCIIlenl, eSlilhhslleli h [be C;ulddmcs and Criteria in order to receive of the (;1 IdetHlf'; 'or example set,. \)ut regulations govc~ing, eligib~e facilitie~, el,i$ible te: ns ;,nd f'( (. 1,mp.: 11 i;'hficalio!1' (,wtnrrr,,,IJCI,' \,\,lt13 j ! sectIons IS reqUIred for elIgibilIty, APPL A rl0N lNFORM!! TJ( N !I,' Id'II;; [iiI!' II,IY , ,lIside, AppiiCiHlI, ,inancla! lapacJf\ ,deh:'Olmmlng whether to enter into an abatement agreelliefli tst.~bl;shnJ 'UIlpalles if) which :)ubll, mformallOll 1, dvailabk. 01 :he wholly..ov,'lled businesses of such \:ompame. \ho,Ild ,ncilldl' vltll 'ilt' ApplJlation J of !Iwil !AII."" :tlllJUdllt~p(ln t" stockholders, Other Applicants and new companies should Jila( h a LateIllcl,tS:lCWI'li the ..lIrnl'im, MiS e,wblishb), business references (name, contact and te'ephune number. I' rrimpaJ bam:. ,,'! tfld ,lid 11<, v ht' u>q, ,ired to submit an audited financial ~tatemc n1l1ld business (\, a li PROJI( '1 NFORMA T'n~. (inly iaci!iues !Jsted III the \Juldelines Illay receive abatement Without applymg for a variance. Check the defmitlorlS III the GlJidei!Ue~ to see if your projecl qualifies If Ule project IS a Basic Manufacturing or Service Industry or a Regllllj;j[ Distrihution Cente the AppJicatlol1 should :nclude market studies husiness plans or other materials demonstrailng thallhe fa.:rJrtv is 'ntended 10 serve narket the majority (If which IS c,uIside of the Nueces County region. ECOl\UMJe INFORM/,TilN F'cnnanelli Emplojnreiii Estlmilte! h, "llmatlllE- pellnaneUi empioymelll. include the total number of jobs (using !'ull Time Equivalents) ( ceated :If th, S!(l' toy 'lour Tlrm ",. well as known pennanent jobs of service contractors required for opera lion Estllllaled Appraised \ alue ou Slle (be value January 1 preceding abatement should be the value established by the "'ueces County Appraisal District If the Applicant must estimate value because the taxable value is not known or is combmed with our properties under a single tax account. please so stale To qualify, the abated properties must be expected Ie resuli in 3tI addition In the tax base uf if least $2 minion aftei the period f,r abatement expires, Projections of value should be :J "best estimate based on taxability m Texas. fhe projection of project values not abated should include personal plOpcrtv and mcligibl, projecHr!atcr' 'mrroVCIDClli" ,lid; a~ !)ft!cc ,pau III excess of that used for plant admini\trat ;{)n, hi )\J~inf~h ht;<'Ek ,i! ~ HI :';j; 'lent '.i :iHJfl :, !'j;!,iH( d' EXHIBITS A&B """""",, .--' 11If<'\TLANTIC CONDOMINIUM "____._"___ em' pus Christi, Texas 78401 IW\FLOPMI<'NT PIAN Our ,;;11 Ifl IS [()l illl !lOdCH lopment (,I tilL Shutters BulldIllg lo(.atcd at !1()2 Winncbago Street Corpus Chns;, ,>(a, Ihl ICilahilltallon 11l11l\l,je,l,' the '",Il1\ctSWII or the c\lsllng structure mto a 34 WlIl high.,,:nc ion ,ondofllllilUl1 facillt\ TIll tit 'clopmclllls an IIndcrtakmg of Shutters Management. Ltd. a part!lcr~lllp b('I\\('(', !e! '\damc J;m iI\ ,he Nola" R\.Hl frlllllh and \.11 lared Shope ~uml!!M\ ofSl!lli.~H')arcels and.Existin1!. Iml)W\Cments PAR( El .1.6112 WINNFBAGO STRFF'I Block ", t ess Portion to Rigid of W,,\. Bluff ,uhdhisioll ('i!\ ..I' (Ut'pus Cht'isti, Nueccs County, Texas ParC{iIlSISL; l! ,; -{fJ( ,quare lu 'I II C ) PH':" and located -II the northeast corner of North Cafalh.ahua Street and Wllflebago :)ll-':U fhc proptr1\ IC cuntl1lh Improved with a tiered 97,542 SquaT, fOOL SC\Cll il SIOf\ office blllldlllg Jnd 90()() square ICet llf" asphalt pavmg The building was constructed 111 1')(,(. am! IS )f masonry Cl'llstructlOn l'he bUlldmg was onginally developed as home to the Allanoe/Mobll Or! (ompam. and "viI' I-..llown b\ thiS name l'or several vears. Some time later. gold shutter', )Aere plac:td on all of the \\ mdo\\ s and the propert\ became Known as the "The Shutters" buildm g It suB holds 1I11S name (odal r Ik buildmg \\ as IIwsl It'cenlh tlccupied b\ the International Institll',e until 'Imh lOll he racilii\ !la, '!llt c beell \ ;j',.ani ACCOldlllg to the: ;"ueecs i ountv-\ppraJsaJ District the Number ii797-0007.002o and Account Number RJ()()79 I $2';0 ~( ($1 ~9d9X Inlpr< \cmcnts Hid ~,')fl 'j 1R I,and, the pac, c (".), cm' propcrh IS ltsted under Tax Identification TIle 2005 assessed value for the parcel was nlC assessment has remained unchanged far PAR< FI B :'2 NORTH ( \RAN( UH \ .., tREE'! Lots ~ md~, BIlt/[.. (, ,.f the B!utl Suhdi,i\i"n 11\ of ( "!'Illl'. Christi Nuen," {(lutlly Tl'xas Parce: ! I I d I . (lO, s\lual. fOOL, -14 Ie n [)Iecc ,,' land located al Ille southeast comer of North Carancahua Street and Winnebago Street ("Ill' \acant lot t~ located immedJateh south of Parcel L Therem no nnpro\l'!Ilt.nts unenth ISSOc.Iil!t.d wIth till propt~rt\ Accordmg to the Nueccs (aunt> Appraisal District the propert~ IS listed under Tax identification Number n797-11006-n07il aJid Accowlt Numbcl Rl967R7 fhe 2005 assessed value for the parcel was S62.400 The assesSI1lCJil has remained unchanged for the past !(mr (4\ \ cars. COMBINIW ASSESSED VALtJE OF !'ARCEIS [AND II Together parcels and lane 2 ha\ c; comhll1cd assessed value of $11:' -B(,. which equates to a total proper1\ la\ IJabilm ofS9j '6 V, I HE ATLANTIC CONDOMINIlJM Corpus Christi, Texas 78401 IIU ATLANTIC CONDOMJNlliM . _.__._....._.._._.___. Corpus Christi, Texas 78401 mE ATLANTIC CONDOMINnJl\1 Corpus Chris~ Texas 78401 I HE ATlANTIC CONDOMINmM "'_'___ Corpus Christi, Texas 78401 t In ATLANTIC CONDOMINWM Corpus Christi, Texas 78401 fnmused ImJJr()vcmcnts Althuugh thl: parlnuslup ,wns !llUllIpk Iral.:ts in till area. the enUre de vclopment will be focused on parel 'IK and sc'. (lccompam lllg dcrial UIi !t)lI,m 111g page) I f" developed according to the currcnl plans Ihe '!7. '42 square reet l,r building area Idelltlfied in Parcel I would be made up of appn'"{ll!Iateh ,,3 ! : l ~qu.'re ICl't o!" usa hi, . living ,Jrl~" i'i.p I "quare lcel common area. and 15.000 squat; L~cl parKlIlll The iIHUi<ln pJaHs. un nth alIOl\ lor the; onstrucllon .11 loti-styk condominium units. with sizes rangJilg (rom I 27' squarl fed 10 72.1 sqllare ICel lire 1I1111s wIll be; developed on 1100rs two (2) through "evcn 7) \\Jlll II;' firsl lloor,iatcd /<:,)1 ulll\CfSiOIl W dl1 enclosed parking area. Since the bUIld Illt' is tcrmeed there ,'ie two planned roof recreatIOnal areas In OJ :Jel 10 help equah/c ti;. prospective \ ,n, S of the proper! \ , )X of the q units have been designed to b,: 1\\') ',[ories I1l helghl I ur the magmh dl the !lints lhe. h\1llg areas 'IIlI be on the first level of the c"no ah lhe bcd'oolllsocated 'lil tJK,uond klel : hl openmgs between the two levels \\ill be exaggerated m order te' gJ\ '.:: owners a mort' traditIOnal Ion e\penence ('Uffent plans call for a total of 2( B,'droom units ilnd I! ) FkdlOOl1l I nits Till' proposed Hili! Oil\( prthe project is provided on the folio" IIlIl page As j, i'arce! Ii. urrent plans call fIX the ~,onstructJO/l ,11 an additlOnal 15,000 square fool. covered parkj.!g.m::a to sene the pr IspectJ,e O\vners of the UIlIlS Timin!! With :espcct to the t1l11lllg "I' the project OUl ,AmstructIon stan date IS predicated upon the success of our pre-sale,. campaIgn Our goal would be to slmt construction no later than August Of September of 2006. Actu;)i C;lIlstTuctlOlI lime is .,;stimated to be 10 10 months whICh equates to a delivery around Mid-Year of 20 !;.~timated RetailYaJuc of Proposed lmon:wements TIns dopmcnl lepresen:s the city s firsl true loli clltldommlWlI development. As a result. historical pncing schemes are non-eXlstent. Based upon our research of the local and regional real estate, we have estimated sale pnces in th~ $200 peT squan loot range \1 the current unit mix, this would equate to overall sale pnces from the rnid-$2JOs 10 the high $400s. and a total retail sell-out amount around $125 milli. 'I: I liE ATI:ANTlC CONDOMINIUM Corpus Christi, Texas 78401 H~J'I"\ 'qQ.IJl_ jail: i'l" .... .... ..---.. I:. . THE ATLANTIC CONDOMINIUM CorDQa 0uUtL TeUl 78401 ~.....:r::u I1SI.W~ Stld8C:l lu.. I I ..Ii, d, . D' U Ii ------l ~ ~ :' " " " " :! " i'-e DNIG1I1111 .-. · .....L I I I I I I I I I I I: I I I I I \ I 1 \ I I I I I I I I I I I I I I I I I I I I [0__-= _ ~ .... lI! \! ti.. I Z < ..J l1. 8l lti ~-:f--<1 i -~ ' THE ATLANTIC CONDOMINIUM COI'IlIII auiad. TellIS 78401 5 0- 0:: o 9 u. o Z N THE ATLANTIC CONDOMINIUM Co..... CloUd. Tesu 7_1 z :5 a.. 0:= o o ...J LL o 0:= M THE ATLANTIC CONDOMINWM CorllUl auua. Teua 78401 co .. g~ ! z ~ a.. 0::: 8 -I I.L. I .... V THE ATLANTIC CONDOMINIDM eon- CIuUd. Teus 78401 z :5 0- 0:: o o ..J u.. J: l- ll) THE ATLANTIC CONDOMINIUM Conus 0uiId. Tesu 78401 z :5 a.. Q: o o -' lL I I- (0 THE ATLANTIC CONDOMINIUM eo....... ChrIs'" TeUl 78401 i!l- ~ ~ ll. 0:: o o ..J u.. :I: f0- r-- RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH SHUTTERS MANAGEMENT, LTD., PROVIDING FOR TERMPORARY PROPERTY TAX ABATEMENT WHEREAS, Texas Tax Code, Chapter 312, authorizes the City of Corpus Christi, Texas ('the City") to enter into Tax Abatement Agreements for projects meeting the guidelines and criteria for granting tax abatement, as amended, duly adopted by the City; and, WHEREAS, the area covered by the attached Agreement is within the Renewal Community and is therefore eligible for tax abatement in accordance with the provisions of the Act NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds and determines that the terms of the proposed agreement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City, and the City further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the long-term benefit of the City. SECTION 2. The execution of the Tax Abatement Agreement Attached hereto in substantial form as Exhibit "A" is hereby authorized and approved. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED: May 23, 2006. BY:~ Assistant City Attorney for City Attorney >-1- LegOir\gws \agenda\2006\05-30\taxabatem en Shutters 2 Corpus Christi. Texas cl .2006 --~._- ,,-, " The above resolution was passed by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E Marez Jesse Noyola Mark Scott H . LegOir\gws\agenda \2006\05-30\taxabatemen S hulters T AX ABATEMENT AGREEMENT THE STATE OF TEXAS * COUNTY OF NUECES ThIs Tax Abatement Agreement (hereinafter referred to as the "Agreement") is made and entered into by and between the CITY OF CORPUS CHRISTI, TEXAS (the "Governmental Unit") and SHUTTERS MANAGEMENT, LTD., (the "Owner"), the owner oftaxable property m the City of Corpus Christi, Tex&<;. 602 Winnebago Street and 922 North Carancahua Street (the "Property"). I. AUTHORIZATION This Agreement is authorized by the Texas Property Redevelopment and Tax Abatement Act, Texas Tax Code, Chapter 312, as amended (the "Act"), and is subject to the laws of the State of Texas and the charter, ordinances. and orders of the Governmental Unit. II. DEFINITIONS As used in this Agreement. the followmg tenns shall have the meanings set forth below: A. 'Base Year Value means the assessed value of the Improvements on the Property as certified by the N ueces County Appraisal Dlstnct as ofthe January 1 preceding the execution ofthts Agreement plus the agreed upon value ofTmprovements made after January I but hefore the executIOn of this Agreement. B. 'Improvement'>' means the buildlllgs or portions thereof and other improvements, mc1uding tixed machmery and equipment. used f()r commercial or industrial purposes on the Propert'. C. 'ConstructIOn Phase' means the period during which a material and substantial Improvement of the Property occurs which represents a separate and distinct construction operatIon undertaken tor the purpose of erecting the Improvements. The Construction Phase ends upon the earliest to occur of the following events: ( 1 I when a certi h:ate of< lccupancy is issued for the project (if within City limits); or 12) when commercIal production of a product or provision of a service is achieved at the facilitv. 0 ! 3 I when the archItect or engineer supervising construction issues a certificate of substantial completlon. or some similar mstrument, or H LegDir/gws iEcoDeVi1 axAbate AtlantlcCBDRes Page I of ] 1. ( 4) two (2) years after the date 0 f this Agreement. fhe determination of the end of the Construction Phase shall be made by the Governmental Unit, in its sole and absolute discretion, based upon the above criteria and such other factors as the Governmental Unit may deem relevant. The determmatlOn ot the end of the Construction Phase by the Governmental Unit shall be (:onclusive" and any judicial review of such determinatIOn shall be governed by the substantIal eVIdence rule D. Abatement' means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes pursuant to the Act E. Eligible Propertv' means the buildings, structures, site Improvements, and that office space and certain personal property necessary to the operation and administration of the Facility to be constructed pursuant to this Agreement. A list of the Eligible Property is set forth m the Project Description which is attached hereto as Exhibit "A" and made a part hereof. During the Construction Phase of the Eligible Property, the (hvner may make such change orders to the Eligible Property as are reasonably necessary to accomplish Its Intended use, provided that no such change order may be made whIch wil! change the qualification of the project as a "Facility" under the (ruldelines and (riteria for Granting Tax Abatement approved by the Governmental I rut F .] neligible Pwpeny' means land; inventones; supplies; tools; furnishings and other forms of movahle pers(lllal property: vehicles: vessels: aircraft; housing; hotel al:commodations; deferred maintenance investments; property to be rented or leased except as pnwlded in Section 2(e): improvements tor the generation or transmission of electncai energy not wholly consumed hy a New Facility or expansion; any Improvements. induding those to produce, store or distribute natural gas, fluids or gases, which ,1re not Integral to the operation of the Facility; improvements to real property Whld ha\e an eCUnOlTIlC life of less than 15 years; property owned or used by th' State of Texac; Of Its p()iitlcal"ubdivlslOns or hy any organization owned, operated 11 directed h) a politicalsubdiYISlOn of the State of Texas; unless any of the above types of property are specifically authorized by the Governmental Unit. G . Added Value' means the mcrease in the assessed value of the Eligible Property as a result of "expansi,.m" or "modernization" of an existing facility or construction of a "new facllit\ " It does not mean or include "deferred maintenance. " H 'facil1ty means I Baslc Manufacturing or Service Facility, Regional Distribution ('cnter Facility, Regional relecommunications/Data Processing Center Facility, Regional Visitor Amusement Facility. Central Business District (CBD) Residential Facility, Renevval Community Facility, or Petrochemical Facility approved by the Gllvernmenta] Umt as set forth in the GUIdelines and Cnteria for Granting Tax .\hatement adopted by the Govemmental Unit. H. LegDir/ gws EcoDe\ IT axAhate\tlantlcCB DRe~ 2 of I : The Guidelines and Criteria for Granting Tax Abatement adopted by the Governmental Unit are incorporated as a part of this Agreement. Except as the same may be modified herein, all definitions set forth therein are applicable to this Agreement. III. PROPERTY The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within the Jurisdiction ofthe Governmental Unit as is more fully described in Exhibit "B" attached hereto and made a part hereof. Said Property is located within a zone for tax abatement established pursuant to Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi, Texas. The Nueces County Appraisal District has established the following values for the Property as of the January I valuation date prior to the date of execution of this Agreement. Account No. nia Personal property $ nla Account No. 079-0007-0020 and 0797-0006-0070 Land $153.338 Improvement, $159,098 [he Governmental Unit and the Owner agree that the value of any additions to the Improvements made after January 1 or not othenvise reflected on the above valuation oflmprovements is: Additional lmpro\ ements: $0 A.ddition of the above amount to the valuation of the Improvements as of the January 1 valuation date prior to the date of execution of this Agreement results in a Base Year Value as follows: Base '{ear Value: 'b312,436. IV, TERM OF ABATEMENT AND AGREEMENT The G(lvernmental 1 Jnit agrees to abate the ad valorem taxes on the Eligible Property in accordance with this paragraph and paragraphs V and VI hereof. The Abatement shall be dlective with the January I valuation date immediately following the date of execution of this \greement The Abatement shall continue for up to two (2) years during the period of the onstructlOl1 Phase and tc)r the next tive (5) full tax years thereafter, expiring as of December31 of such third tax year. ffthe period of the Construction Phase exceeds two (2) years, the Facility "hall be considered completed for purposes of Abatement, and in no case shall the period of ,\ batement mcIusive of construction and completion exceed seven (7) tax years. The years of Abatement provided herein shall in each instance coincide with the tax year commencing on January 1 and expiring on December 31, and in no event shall the Abatement extend beyond December 31 of the sixth tax year. This Abatement shall also cover as Eligible Property those H. LegDlr/gws, EcoDe\!T axAbate '\t1anticCHDRes l'a?e3ofl' supplemental improvements to the Eligible Property that are added or constructed during the post-construction five (5) year period of Abatement. In no event, however, shall the total Abatement period for such Eligible Property exceed the maximum seven (7) year Abatement period for the entire project as specified herein. The term of this Agreement shall continue for a period of five (5) years following expiration of the abatement period. All terms and conditions imposed upon the Owner shall continue in effect dunng such period, and the Owner shall be obligated specifically to continue the minimum employment levels specified herein. Any default shall be subject to the provisions of Article VIII hereof V. TAXABILITY During the period that the Abatement is effective, taxes shall be payable as follows: (1) The value of the land comprising the Property shall be fully taxable; (2) The Base Year Value of existing Improvements comprising the Property shall be fully taxable: (3) The value of Ineligible Property shall be fully taxable; and (4) The Added Value of Eligible Property shall be abated as set forth in Part VI herein. VI. AMOUNT OF ABATEMENT The Abatement provided by thIS Agreement shall be in accordance with the following schedule Constmction PerioJ (not to exceed :2 years I Year J Year :2 Year .' Year 4 Year ::- Percentage of Abatement 100% 100% 100% 100~'o 100% 100% l \late: If this pWlect is designated as a "rehabilitation project" under the Guidelines and Cnteriawhlch im olves the adaptive reuse (If an existing structure or building for a Facllltv. the project must lI1volve a minimum capital expenditure of $250,000. The rehabihtation project must Involve the adaptive reuse of an existing structure or building currently on the property tax rolls so that the Base Year Value associated with the project will include hoth the \alue of the land and the existing improvements. The Owner and Owner's landlord specItically disclaim any abatement for improvements to the building, and I-ILegDirigwsFcoDev TaxA bate AtlantJcCBDRe- Page 4 of \ the covenants and obligations hereof shall not be binding upon Owner's landlord. The sole Eligible Property subject to abatement shall be the value of personal property such as furniture and movable equipment installed by Owner which would otherwise be considered Ineligible Property for any other type of abatement category. In no event, however, may the total value of such personal property subject to abatement exceed $] million. J At the time of execution of this Agreement, the Owner reasonably estimates and represents to the Governmental Unit that the Added Value comprising pennanent Improvements upon completion of the Construction Phase shall be: $ 11.500,000 ("Estimated Added Value"), In the event that upon completion of the Construction Phase the Added Value of permanent Improvements, as determined by said Appraisal District, shall at any time thereafter during the period of Abatement be less than eight-five percent (85%) of the Estimated Added Value, not due to circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes hereunder, an amount equal to the then current tax rate of the Governmental Unit applied to the difference between the Added Value from eighty-five percent (85%) of the Estimated Added Value, multiplied by 100% minus the net percentage of Abatement provided under this Agreement For the purposes of this provision, the term "circumstances beyond the control of Owner" shall include casualty losses, national economic factors, shutdowns due to governmental regulations. strikes, acts of war; and the like. The fonnula for calculating such additional tax is outlined as tollows: [Tax Rate] x [(85%; of Est Added Value Actual AV) x (100% - Abatement%)] = Additional Tax. VII. CONTEMPLATED IMPROVEMENTS The contemplated improvements are set forth in the Project Description attached as Exhibit "A," During the ConstructlOn Phase, the Owner may make such change orders to the project as are reasonably necessary, provided that no such change order may be made which will change the qualification of the project as a "Facllity" under the Guidelines for Granting Tax Abatement approved by the Governmental LImt All Improvements shall be completed in accordance with all applicable laws. ordinances, rules or regulations. During the term of this Agreement, use of the Property shall be limited to operation of the Facility described in the Project Description ~:onsistent with the general purpose of encouraging development or redevelopment of the zone during the period ()fthis Agreement VIII. EVENTS OF DEFAUL T AND RECAPTURE A. FaIlure to Commence Operation Durin,g Tern1 of Agreement. In the event that the Facility is not completed and does not begin operation by the January I following the completion of construction, no abatement shall be given for that tax year, and the full H LegDir/gwsiEcoDev/T axAbate AtlantJcCBDRes Page 5 of 1 ") amount of taxes assessed against the property shall be due and payable for that tax year. In the event that the Owner fails to begin operation by the next January 1, then the abatement Agreement shall terminate and all abated taxes during the period of construction shall be recaptured and paid within 60 days of such termination. B. Discontinuance of Operations During. Term of Abatement. In the event the Facility is completed and begins operation but subsequently discontinues operations during the term of the Agreement after the completion of construction, for any reason except on a temporary basis due to fire, explosion or other casualty or accident or natural disaster, the Agreement may be terminated by the Governmental Unit, and all taxes previously abated by virtue ()f the Agreement shall be recaptured and paid within 60 days of such termination C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest, thiS Agreement shall terminate and so shall the abatement of the taxes for the calendar year of the delinquency. The total taxes assessed without abatement for that calendar year shall be paid within 60 days from the date of termination. Penalty and interest shall not begin to accrue on the additional amount of taxes due as the result of recapture under this provision until the first day of the month following such sixty (60) day notice, at which time penalty and interest shall accrue in accord with the laws of the State of Texas. Penalty and interest on the amount of taxes originally levied based upon the Abatement shall, of course, begin to accrue as of the date such taxes v.. ere due in accord with the laws of the State of Texas. n Notice of Default. Sbould tbe Governmental (init determine that the Owner is in default according to the terms and condItIOns of this Agreement, It shall notify the Owner that If such default is not cured withll1 sixty (60) days from the date of such notice ('Cure Period'). then this Agreement may be terminated. In the event the Owner fails to cure SaId default during the Cure Period, this Agreement may be terminated and the taxes anated hv \lrtlJe 0; the Agreement will he recaptured and paid as provided herein. t. ll"ctual-Added Value. Should the Nueces County Appraisal District determine that the total Ie\el of Added Value during any year of the term of this Agreement after completion of the Construction Phase IS lower than the Estimated Added Value such that a lower percentage of Abatement is applicable, for each year during which an A.batement has been granted the difference between the tax abated and the tax which should have been abated based upon the actual Added Value shall be determined by the (i'lvemmental UnIt and paid within 60 days of notification to the Owner of such determinatlOn. Penalty and interest shall not hegm to accrue upon such sum until the first day oj the m(inth t()llowmg such SIxty (60) day notice, at which time penalty and mterest shall a(crue in accurd wlth the laws of the State of Texas. F f~t:duction In Rollback Tax Rate If during any year of the period of Abatement any portion of the abated value is added to the current total value of the Governmental Unit hut is not treated as 'new property value' (as defined in Section 26.012 (17) of the H. LegDirl g wsEcoDevfTaxAbate .....tlantlcCBDRes P1ge 6 Df J\ Texas Tax Code) for the purpose of establishing the "effective maintenance rate" in calculating the 'rollback tax rate' in accord with Section 26.04 (c) (2) of the Texas Tax Code and if the Governmental Unit's budget calculations indicate that a tax rate in excess of the 'rollback tax rate' is required to fund the operations of the Governmental Unit for the succeeding year, then the Governmental Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following: ( 1) The amount of the taxes abated for that year by the Governmental Unit with respect to the Property. (2) The amount obtained by subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and multiplymg the difference by the total assessed value of the Governmental Unit If the Governmental Unit has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on the baSIS of the value of the abatement with respect to each taxpayer. This event shall not constitute a 'default" under this Agreement, and the sixty (60) day Cure Period provided above shall not apply. Such recaptured taxes must be paid within thirty (30) days after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue upon such sum until the first day of the month following such thirty (30) day notice, at which time penalty and interest shall accrue in accord with the laws of the State of Texas. G ClUltinuation of Tax Lien. The amount of tax abated each year under the terms of this Agreement shall he secured by a first and prior tax lien which shall continue in eXIstence trom year to year until such time as this Agreement between the Governmental tlni! and Owner IS fully performed by Owner. or until all taxes, whether Jssessed or recaptured. are paid 111 fail. In the event of any default by Owner. the governing body of the Governmental Unit reserves the right to terminate or modify this Agreement. Owner shall be afforded written notice of such default and the opportunity to cure as provided above. If Owner believes such action was lmproper, Owner may file an appeal in Nueces County district court within sixty (60) days after written notice of the actIOn by the Governmental Unit. Owner shall remit to the Governmental i mt, within such 60-day period, any additional or recaptured taxes levied pursuant to the payment proviSIOns of Texas Tax Code ~ 42.08. If the t1nal determination of the appeal increases j hvner's tax liability above the amount paid, Owner shall remit the additional tax pursuant to I ax Code 9 4242 If the final detennination of the appeal decreases Owner's tax liability, the tJUvenunental 'Unit shall refund the Owner the difference between the amount of tax paid and the amount of tax for which Owner is liable pursuant to Tax Code 9 42.43. H. LegDir/gwsfEcoDevT ax Abate, ,l"tlanticCBDRes Page 7 of ]; IX. ADMINISTRATION Inspections. The Owner shall allow employees and/or representatives of the Governmental Unit to have access to the Property during the term of this Agreement to inspect the Facility to determine compliance with the terms and conditions of this Agreement. All inspections will be made only after the giving of twenty-four (24) hours prior notice and will only be conducted in such manner as to not unreasonably mterfere with the construction and/or operation of the Facility All inspections will be made with one or more representatives of the Owner and in accordance with Owner's safety standards. Appraisals. The Chief AppraIser of the Nueces County Appraisal District shall annually determine (i) the taxable value of the real and personal property comprising the Property taking mto consideration the Abatement provided by this Agreement, and (ii) the full taxable value without Abatement of the real and personal property comprising the Property. The Chief .Appraiser shall record both the abated taxable value and the full taxable value in the appraisal records. The full taxable value figure listed in the appraisal records shall be used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated in a manner that results in recapture. Each year the Owner shall furnish the Chief \.ppraiser with such information outlined in Chapter 22. Texas Tax Code, as amended, as may be necessary for the administration of the Agreement specified herein. Annual Reports. Owner shall certify to the governing body of the Governmental Unit on or before April 1 each year that the Owner is in compliance with each applicable term of this Agreement Additionally, during the imtial four years of the term of property tax abatement, Owner shall provide to the Governmental Unit an annual report covering those items listed on Schedule J attached hereto In order to document the eff011s (If the Owner to acquire goods and services on a local basis. Such annual report shall be prepared on a calendar year basis and shall be submItted to the Governmental Unit no later than ninety (90) days following the end of each such calendar year. The annual report shall be accompanied by an audit letter prepared by an mdependent account1l1g tinn whIch has reVIewed the report. 'Buy Local' ProviSIOn The Owner additionally agrees to give preference and priority to local manufacturers. suppliers, contractors and labor, except where not reasonably possible to do so without added expense, substantIal inconvenience, or sacrifice in operating efficiency. In any such exception cases involving purchases over $10,000.00 a justification for such purchase shall be included m the annual report. The Owner further acknowledges that it is a legal and moral 'lbIigation of persons receivmg property tax abatements to favor local manufacturers, suppliers, (ontractors and labor. all other factors being equaL For the purposes of this provision, the tenn local" a:-, used to describe manufadurers. suppliers, contractors and labor shall include firms, husinesses. and persons Will) reside in or maintalll an office in either Nueces County or San Patricio (ounty In the event of a breach of the buy local provision. the percentage of abatement .,hall be proportionatel) reduced by the amount the disqualified contract bears to the total .:unstructlOll cost for the project. H LegDir/ gws;EcoDeviT axAbate. AtlantlcCBDRes Page 8 of 1 '\ x. ASSIGNMENT The Owner may assign this Agreement to anyone or more corporation(s), 50% or more of the outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an Owner, is a general partner. The Owner may assign this Agreement to any other new owner or lessee of the Facility with the prior written consent of the Governmental Unit, which consent shall not be unreasonably withheld. Any assignment shall provide that the assignee shall Irrevocably and unconditionally assume all the duties and obligations of the assignor and become the Owner upon the same terms and conditions as set out in this Agreement. In the event more than one entity is Owner hereunder, the obligations of said entities shall be joint and several. Any assignment of this Agreement shall be to an entity that will provide substantially the same Improvements to the Property, except to the extent such improvements have been completed. No assignment shall be approved if the Owner or any assignee is indebted to the Governmental Unit for ad valorem taxes or other obligations. XI. NOTICES Any notice reqUired it, be given under the provisions of this Agreement shall be in writing and shall be duly served Nhen it shall have been deposited, with the proper postage prepaid thereon, and duly registered or certified. return receipt requested, with the United States Postal Service, addressed to the Governmental Unit or Owner at the following addresses. If mailed, any notice or conununication shall be deemed to be received three days after the date of deposit in the United States Mail. linless othellNise provided in this Agreement, all notices shall be delivered to the f0110wing addresse~: To the Governmental {'nit: CITY OF CORPUS CHRISTL TEXAS 1201 Leopard Street P O. Box 9277 Corpus Christi, Texas 78469 Attn: City Manager To the Owner: SI--IUTTERS MANAGEMENT, LTD. P O. Box 8324 Corpus Christi. Texas 78468 Either party may designate a ditferent address by giving the other party ten days' written notice This Agreement has been executed hv the parties in multiple onginals or counterparts, each having full force and etfect. Executed th1s day tlf .2006. H : LegDir/gws/EcoDevi'J axAbate AtlantlcCBDRes Page 9 of 1 , GOVERNMENTAL lNJT- AITEST By: ______ _,__ Armando Chapa, City Secretary APPROVED AS TO FOR \1: By: (),.../J~..:N. ~ant City Attorney for Mary Kay Fischer. City Attorney OWNER: H:LegDir/gws' EcoDev/T axAbate AtlantlcCBDRes PagelOof13 CITY OF CORPUS CHRISTI, TEXAS By: George Noe, City Manager SHUTTERS MANAGEMENT, LTD. By: Mark Adame President SCHEDULE I . Bu y Local' Annual Reports The following information shall be reported to the Governmental Unit on a calendar-year basis during the first four years of the tax abatement program: Dollar amount spent for materials* (local). Dollar amount spent for materials (total). Dollar amount spent for labor** (local) 4 Dollar amount spent for labor** (total). " Number of Jobs created in the construction project (local). (> Number of jobs created in the construction project (total). Number of jobs created on a permanent basis (local). x Number of lobs created on a permanent basis (total) * 'Matenals' is defined to mclude all materials used in excavation, site improvement, demolition. concrete, structural steel, tire proofing, piping, electrical, instruments, paintings and scaffoldmg. insulation. temporary construction tacillties, supplies, equipment rental in construction, small tools and consumables. This term does not include major items of machinery and equipment not readtlY-1Vailable locall\ ** 'Labor' IS defined to mclude all labor 111 connection with the excavation, site improvement, demolition. concrete construction. structural steel, fire proofing, equipment placement, piping, electrical, 1l1struments, painting and scaff()lding, insulation, construction services, craft benefits, payroll burdens. and related labor expenses. This tem1 does not include engineering services in connection with the pr01ect design. The term "local" as used to describe manufacturers, suppliers, contractors and labor shall include firms, businesses, and persons who reside in or maintain an office in either Nueces County or San Patncio County H . LegDir/gwsiEcoDevilaxAbate AtlanticCBDRe, Page 11 of 1 ~ Exhibit A Corpus Christi Project Plan May 23. 2006 This project wIll involve the adaptive reuse of an existing downtown building and convert the building into private residences. The site is currently vacant. Permanent Improvements $ 11,187,564 Estimated capital $ 11,187,564 H : LegDirl gws!EcoDevilax Abate AtlantIcCBDRes Page 12 of i~ EXHIBIT' B' Lot 7 (less portion to right-of-way), Bluff Subdivision and Lots 7 and 8, Block 6, Bluff SubdIvision, City of Corpus Christl, Nueces County, Texas, and being known as 602 Winnebago Street and 922 North Carancahua Street, Corpus Christi, Texas. H : LegDir/gws/EcoDev TaxAbale, \tlanllcCBDRe, Page13ofl' APPLlCA nON FOR TAX ABATEMENT This application should be filed prior to the beginning of construction or the installation of improvements. The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Granting Tax Abatement. This application will become part of the Tax Abatement Agreement and any knowingly false representations will be grounds for terminating the Agreement. This Application should be submitted to the City Manager, City Hall, 1201 Leopard, PO Box 9277, Corpus Christi, Texas 78469 (for properties inside the City limits) and to the County Judge, Nueces ('ounty Courthouse, ')0 I eopard Street, Corpus Christi, Texas 78401 (for properties in unincorporated areas). FOUR COPIES OF THl APPU( ATKIN SHOULD BE FILED WITH THE APPROPRLHE GOVERNMENTAL UNIT. -\pplicant Information Date 2..! .11/ 2006 Company I\aml A TTACH ANNUAL REPORT. NUECES LOFT APARTMENTS. L.P. N umber of Employees N/A \ddress /\nnual Sales NfA C/O 13411 FM 1560 "eloles. Texas 78023 Project Information: Use of FacIlity ) BasIC Manufactunng "r ServIce Industry ) Enlerpnse Zone Residential Redevelopment Facillt\ ) RegIOnal DIstribution Center ) Regional Visitor/Amusement Facility X) DO'\1110Wn Revitalization Housing Facility ) Petrochemical Facility ) Regional Telecommunrcatlons Facility . 1 Renewal Community FaCIlity - - ----- --- - ,~~~-- ~ Describe Prqduct, Service or FaCJlity 10 be "rovlded The project involves the adaptive reuse of a histork do~ntown building, the ~Nuecell Building" at 317 Peoples Street in Corpus Christi, Nueces Count), Tens, into 66 rental apartments comprised or lofts, one bedroom and two bedroom units. Project Descnpllon \uoch as LXlllbl1 A.lone 01 mOle klter-SIl..: pages) a Sl,uemellllUtly e>.pla.nlllg the proJed, desClibl1lg me eXtstmg site and improvemenL~, describing "II proposed !ml'rovcmenls and 'rvesnnent.' and providing 3 1"1 ,,( Improvements and property for which abatement is requested iX NE'.., PR01EC! i ) ',XI'ANS!ON M()DERNIZATfON 'lperation Address and Legal Description ( 'il\ Comus Christi School District Comus Christi ISD .\ttach as E\hlhr B (011<' or mOfe ICUf', .size rages):\ ,:omnlete 'egal descnptlol1 and/ill mar shOWing proposed site LconomK Information C:onstruction Estimates II MO[)E~"IILATION 'ommcncenlcm Date: 9-1-2006 Lstllnated Economic LIfe of LXlstmg Plant: nfa years otUpletion Dall 9-1-2007 \dded EconomiC Life from Modernization: nla years Peak ConstLH.:tH1r1 Jobs unknown 'ntal Cost o!C"nstrucllon' $2.900.000 "<,11JllI!l~!l11:Jnplovment ESllmates (Flu~ "ermanel1l Employment 2 ':(,mber of Jobs 'reated 2 PAGE nH' Estimaled Aopralsed Value 011 Site land Improvements Personal property 'Is of January Preceding Abatement Agreement $112.214* $1.052.964* $ 00 Value of Abated Property upon Completll>n of Project SJ.952.964 $ 00 Value upon Completion of Project of any Property and Project Improvemenl~ not subject w Abatement nla nIl nla is the land currently under an agricultural-use or open-space exemption? Yes ( ) No (X) *Current figures proposed by Nueces County Appraisal District for 2006 Land/Imp fa\ Acct No 0054-0004-8070: 0054-0011-0010: 0054-0011-0030: and 0054-0011-0035: Personal Prop ..\ect No n/a VARIANCE [s the applicant seekmg variance under Section J(t) of the Guidelines? Yes ( ) No (X) If "yes" attach the required supplementary infonnation. OTHER ABATEMENTS Has thl.' applicant made application for abatement of this project by another taxing jurisdiction or nearby counties') Yes lX l No ( ) If "yes" provide dates of application, hearing dates, if held or scheduled, name of Jurisdictions and contacts, and letters of intent An application is being filed with Nueces County at the same time. COMPANY REPRESENTA 1 IVE ro BE CONT/\CTJ-D: Name: ride: William L. Hoover President of General Partner Signature of Authorized Company Official 1'f,J~ ~ - 13411 FM 1560. Helotes. TX 78023 felephone: (210) 308-9444 A.ddress Name and Title of Authorized Company Official INSTRUCTIONS \pplicants and projects must meet the requirements established by the Guidelines and Criteria in order to receive positive conSideration. Section 2 01 the Guidelines, for example, sets out regulations governing eligible facilities, eligible and Ineligible imrmvemems. Icrms and "~'onnmic qllalilicatlons. Confonnance with all sections is required for eligibility. ,\PPLlCA fj( iN IN FORlvLt\ T/()N Ihe taxing unn may con'lder Applicant's financial capacity m determining whether to enter into an abatement agreement Established companie, for which public information is available, or the wholly-owned businesses of such companies. should include with the Application a copy of their latest annual report to stockholders. Other Applicants and new companics should attach a statement showing when the company was established, business references (name, contact and telephone number of principal bank, accountant ,md attorney) and may be required to submit an audited financial "tatement and business plan !'ROILC! !NH)RMA !l(l'\ ()nly facilities listed 111 tne Cluidelines may receive abatement without applying for a variance. Check the defmitions in the Guidelines to see If your project qualifies. If the project is a Basic Manufacturing or Service Industry or a Regional Distribution Center, the Application should include market studies, business plans or other materials demonstrating that the facilitv is intended to serve a markel the majority of which is outside of the Nueces County region. ECONOMIC INFORMAlh)N Permanent Employment E~timates -- In estimating pennanent employment include the total number of jobs (using ~ull Tunc l-qlJlvalents) created 1t th, site 1'\\ \our finlli'i well as known permanent jobs of service contractors required for lperation htimated AppraIsed Value on Site -- rhe value January I preceding abatement should be the value established by [he Nueces County Appraisal Distrll'l. If the Applicant must estimate value because the taxable value is not known or is c;ornbined with our properties under j single tax account please so state. To qualify, the abated properties must be expected '0 result in an addition to the tax base of at least $2 million after the period of abatement expires, Projections of value should be a "best estimate" based on taxability in Texas. The projection of project values not abated should include personal property and ineligible project-related improvements such as office space in excess of that used for plant administration, housing, e1c ! \I1\Work (]6\Hoover-AppiIcatIPnd.",' EXHIBIT A Nueces Loft Apartments, LP The Nueces Building is an existing building located at 317 Peoples Street, Corpus Christi, Texas 7840 I The seventy-eight year old building contains approximately 60,000 square feet of gross building area in a ten-story structure. The adaptive reuse for the Nueces Building calls for a mixed use development. The ground floor will have office space and residential rental housing units will occupy the upper floors. There will be a total of sixty-six rental units including lofts, one- and two-bedroom units. The ground floor will have the onsite management office and 4,669 square feet of commercial lease space. rhe building' s mechanical, electrical and plumbing will be renovated to meet all code requirements for residential use. Each apartment unit will have a separate heating, venting and air conditioning system interior finish of the apartment units will be a "loft type" design with sealed concrete floors, exposed mechanical and plumbing lines inside the ten foot ceiling height. All units will have a complete kitchen package including a refrigerator, dishwasher, range, oven, and mIcrowave oven. \11 units will have washer dryer connections. The building will have a community laundry facilit) and tenant storage lockers. Covered parking will be located across the street from the building in a controlled access lot. The cost of the construction totals $2,900. noo Construction is targeted to start September 1,2006. The construction will be completed over a twelve-month period l' \] I\Work 06\ Hoover ApDlJcatlon doc EXHIBIT B NUECES LOFT APARTMENTS, L.P. t; - ;~I--' 8 t;; 5 - - I 5 lIJ ~ ~ I i -'-1 3 '-] 13 \ol 2 L 12 ST ARA ST. E ;- r-; -1 f-- a 10 10 !.~ f-------- 12 ;] PEOPLES ST. ~~T11 - --~j7 H- 6 ! --__.. 8cH<41>.-. J-.._ ---........,t.l~: IATLUfoCST. 7 _. 8 I i!!l " 10 11 12 a . 10 11 12 r ~11 4 1D Iract 1: Lnt 7 and the North .3 7 feet of 1,01 8, Block 4, Beach Portion, City of Corpus Christi, Nueces County. Texas. Iract n. Lots I and 2, and the East 105 feel of Lots .3 and 4, Block II, Beach Portion, City of Corpus Christi, Nueces County, Texas. \1 l\Work.()6\Hoover.Appilcation doc RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH NUECES LOFT APARTMENTS, L.P., PROVIDING FOR TERMPORARY PROPERTY TAX ABATEMENT WHEREAS, Texas Tax Code, Chapter 312, authorizes the City of Corpus Christi, Texas ('the City") to enter into Tax Abatement Agreements for projects meeting the guidelines and criteria for granting tax abatement as amended, duly adopted by the City; and, WHEREAS, the area covered by the attached Agreement is within the Renewal Community and is therefore eligible for tax abatement in accordance with the provisions of the Act: NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF CORPUS CHRISTI, TEXAS: SECTION 1. The City Council finds and determines that the terms of the proposed agreement and the property subject to the proposed agreement meet the applicable guidelines and criteria, as amended, adopted by the City, and the City further determines that the proposed project is feasible and the proposed temporary abatement of taxes will inure to the iong-term benefit of the City. SECTION 2. The execution of the Tax Abatement Agreement Attached hereto in substantial form as Exhibit "A" is hereby authorized and approved. ATTEST: THE CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor APPROVED: May 23 2006 By ~~ __ ..._ Assistant City Attorney for City Attorney H LegOir\gws\agenda \2006\05-30\taxabatem enNueces Lofts 2 Corpus Christi, Texas of ____ , 2006 The above resolution was passed by the following vote: Henry Garrett Brent Chesney Melody Cooper Jerry Garcia Bill Kelly Rex A. Kinnison John E. Marez Jesse Noyola Mark Scott .., . LegDlr\gws \agenda\2 006\05- 30\ ta xabatemen Nueces Lofts T AX ABATEMENT AGREEMENT THE STATE OF TEXAS * COlJNTY OF NUECES This fax Abatement Agreement (hereinafter referred to as the "Agreement") is made and entered mto by and between the CITY OF CORPUS CHRISTI, TEXAS (the "Governmental Unit") and NUECES LOFT APARTMENTS, L.P., (the "Owner"), the owner oftaxable property tn the City of Corpus Christi, Texas, 317 Peoples Street (the "Property"). I. AUTHORIZATION ThIS Agreement is authorized by the Texas Property Redevelopment and Tax Abatement .'\ct, Texas Tax Code, Chapter 312, as amended (the "Act"), and is subject to the laws of the State of Texas and the charter, ordinances, and orders of the Governmental Unit. II. DEFINITIONS As Lised in this Agreement, the followmg terms shall have the meanings set forth below: A. . Base Year Value means the assessed value of the Improvements on the Property as certified h\ tht~ Nueccs County Appraisal District as of the January 1 preceding the execution uf thIS A,greement plus the agreed upon value of Improvements made after January I hut hefore the executlOn of this Agreement. R 'Improvement:-;' means the buildmgs or portions thereof and other improvements, mcluding fixed machinery and equipment. used for commercial or industrial purposes OIl the Propert\ ( . ( unstructlon I)hase' means the period dunng whIch a material and substantial Improvement of the Propel1y occurs which represents a separate and distinct constructIOn operation undertaken for the purpose of erecting the Improvements. The Construction Phase ends upon the earliest to occur of the following events: ! \ \\hen a cCI1iflcatc of (lCCUpancy is Issued for the project (if within City limits); or ':: } \vhen cllnlmercial production of a product or provision of a service is achieved at the facIlitv. 01 ! i) when the archltect or engineer supervising construction issues a certificate of substantial completlOn, or some similar instrument, or ! 4, two (2) vears1fter the date of this Agreement. H LegDir!gws/EcoDev/TaxAbate NuecesLoftsCBDRes P'!ge I of ; The determination of the end of the Construction Phase shall be made by the Governmental Unit, in its sole and absolute discretion, based upon the above criteria and such other factors as the Governmental Unit may deem relevant. The determination of the end of the Construction Phase by the Governmental Unit shall be conclusive, and any judicial review of such determination shall be governed by the substantial eVidence rule. D. 'Abatement' means the temporary or partial exemption from ad valorem taxes of certain added value to real and personal property in a zone designated for economic development purposes pursuant to the Act E. 'Eligible Property' means the buildings, structures, site Improvements, and that office space and certain personal property necessary to the operation and administration of the Facility to be constructed pursuant to this Agreement. A list of the Eligible Property is set forth in the Project Description which is attached hereto as Exhibit "A" and made a part hereof. During the Construction Phase of the Eligible Property, the Owner may make such change orders to the Eligible Property as are reasonably necessary to accomplish its intended use, provided that no such change order may be made which will change the qualification of the project as a "Facility" under the Guidelines and Criteria fi)r Granting Tax Abatement approved by the Governmental l nit. F 'Ineligible Property' means land, inventories; supplies; tools; furnishings and other forms of movable personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred maintenance investments: property to be rented or leased ex~ept as proVIded in SectIOn 2( e): improvements for the generation or transmission of electrical energy not wholly consumed by a New Facility or expansion; any Improvements, induding those l() produce. store or distribute natural gas, fluids or gases. which are not integral to the operation of the Facility; improvements to real property which have an economic life of less than] 5 years: propeliy owned or used by the State of Texas or its political subdivisions or by any organization owned, operated or directed by a political subdiVision of the State of Texas; unless any of the above types of property are specitically authonzed by the Governmental Unit. G . Added Value' means the increase in the assessed value of the Eligible Property as a result of "expansion" or "modernization" of an existing facility or construction of a 'new facility." It does not mean ()f include "deferred maintenance." H . Facility' means (1 BaSIC Manufacturing or Service FacJiity. Regional Distribution C:enter Facility, Regional T decommumcations/Data Processing Center Facility. RegionaJ VIsitor Amusement Facility. Central Business District (CBD) Residential Facility. Renewal Community Facility. or Petrochemical Facility approved by the Governmental Umt as set forth in the Guidelines and Criteria for Granting Tax i\batement adopted by the Governmental Unit. H. LegDir/gws/EcoDe\ TaxAbatei\JuecesLotlsCBDRes Page 2 of ]'; The GUidelines and Criteria for Granting Tax Abatement adopted by the Governmental Unit are Illcorporated as a pan of this Agreement. Except as the same may be modified herein, all definitions set forth therein are applicable to this Agreement. III. PROPERTY The Property is an area within the City of Corpus Christi, Texas, located in whole or in part within the jurisdiction (If the Governmental Unit as is more fully described in Exhibit "B" attached hereto and made a part hereof SaId Property is located within a zone for tax abatement established pursuant to Chapter 312 of the Texas Tax Code, as amended, by the City of Corpus Christi. Texas The Nueces County Appraisal Distnct has established the following values for the Property as of the January 1 valuation date prior to the date of execution of this Agreement. .-\ccount No. nJa Personal property $.nJa Account No. P054-0004-QQ7Q Land Impr01cmcm \ $ 112214 $1,052,964 The Governmental Unit and the Owner agree that the value of any additions to the Improvements made after January 1 or not otherwise reflected on the above valuation ofImprovements is: ,\dditl()J)i!] ImpI"(\' emeol:": $(1 /\ddition of the above amount to the valuation of the Improvements as of the January I valuation date prior It. the date of~xe(ution otthls "'b'Teement results in a Base Year Value as follows: Base\'earValue ~1,1()5 j"'x IV. TERM Of ABATEMENT AND AGREEMENT The Govenuncntal Unlt agrees 10 abate the ad valorem taxes on the Eligible Property in accordance \vith this paragraph and paragraphs V and VI hereof The Abatement shall be effective With the January I valuation date immediately following the date of execution of this '\greement The Abatement shall continue f()r up to t\VO (2) years during the peliod of the (onstructJoll Phase and for I he next tive (5) full tax years thereafter, expiring as of December31 dfsuch third tax year Tfthe period of the ConstructIOn Phase exceeds two (2) years, the Facility ,hall be ulllsldered completed f(x purposes \)f Abatement, and 111 no case shall the period of c\batement mc1usive of constructIOn and completion exceed seven (7) tax years. The years of i\batement proVided herem shall in each lI1stance c01J1cide with the tax year commencing on January 1 and expinng on December 31, and in no event shall the Abatement extend beyond December 3] of the sixth tax year. Tl1ls Abatement shall also cover as Eligible Property those supplemental improvements to the Eligible Property that are added or constructed during the H LegDir/gw~ I::coLle\ 1 axAhate NuecesLoftsCBDRes Page 3 nf 1 post-construction five (5) year penod of Abatement. In no event, however, shalJ the total Abatement period for such Eligible Property exceed the maximum seven (7) year Abatement period for the entire project as specified herein. The tenn of thIS Agreement shall continue for a period of five (5) years following expiration of the abatement period. All terms and conditions imposed upon the Owner shall continue in effect dunng such period, and the Owner shall be obligated specifically to continue the minimum emplo)ment levels specified herein. Any default shall be subject to the provisions of Article VIII hereof V. TAXABILITY During the period that the Abatement is effective. taxes shall be payable as follows: (1) The value of the land comprising the Property shall be fully taxable; (2) The Base Year Value of existing Improvements comprising the Property shall be fully taxable: (3) The value of Ineligible Property shall be fully taxable: and (4) The Added Value of Eligible Property shall be abated as set forth in Part VI herein. vr. AMOUNT OF ABA TEMENT The Abatement pn.vided hy thIS Agreement shall be in accordance with the following schedule ConstructlOn Period (not to exceed::: veal'S i Year I Year ::' Year 3 Year 4 '{ ear 5 Percentage of Abatement J 000/0 100% 100% 100% ]00% 100% [Note: If this project is designated as a "rehabilitation project" under the Guidelines and Cliteria which involves the adaptive reuse of an existing structure or building for a Facility. the project must involve a minimum capital expenditure of $250,000. The rehabilItation project must involve the adaptIve reuse of an existing structure or building currently on the property tax rolls so that the Base Year Value associated with the project will mclude both the value of the land and the existing improvements. The Owner and Owner's landlord specifically disclaim any abatement for improvements to the building, and the covenants and obligations hereof shall not be binding upon Owner's landlord. The sole H LegDirl gws/ EcoDev!Tax A hate. NuecesLo ttsCB DRes Page 4 of 1 \ Eligible Property subject to abatement shall be the value of personal property such as furniture and movable equipment installed by Owner which would otherwise be considered Ineligible Property for any other type of abatement category. In no event, however, may the total value of such personal property subject to abatement exceed $1 million.] At the time of executIOn of thIS Agreement, the Owner reasonably estimates and represents to the Governmental Unit that the Added Value comprising permanent Improvements upon completion of the Construction Phase shall be: $ 2,787,786 ("Estimated Added Value"). In the event that upon completion ofthe Construction Phase the Added Value of permanent Improvements. as determined by said Appraisal District, shall at any time thereafter during the period of Abatement be less than eight-five percent (85%) of the Estimated Added Value, not due to Circumstances beyond the control of Owner, the Owner agrees to pay, as additional taxes hereunder, an amount equal to the then current tax rate of the Governmental Unit applied to the difference between the Added Value from eighty-five percent (85%) of the Estimated Added Value, multiplied by 100% minus the net percentage of Abatement provided under this Agreement. For the purposes of this provision, the term "circumstances beyond the control of Owner" shall include casualty losses, national economic factors, shutdowns due to governmental regulations. strikes, act.;; ot war: and the like. The formula for calculating such additional tax is ,mtlined as follows: Tax Rate x [(8)0/0.Jf Est Added Value Actual AV) x (100% - Abatement%)]:::: Additional I'ax. VII. CONTEMPLATED IMPROVEMENTS The contemplated improvements are set forth In the Project Description attached as Exhibit i\." During the ConstructIOn Phase, the Owner may make such change orders to the project as are reasonably necessarv, provided that no such change order may be made which will change the qualIfication of the prolect as a "FaCIlity" under the Guidelines for Granting Tax Abatement approved by the Governmental Unit All improvements shall be completed in accordance with all applicable laws. ordmance:-. rules or regulations. During the term of this Agreement, use of the Property shall be lllnited to operation i)f the Facility described in the Project Description consistent with the general purpose of encouraging development or redevelopment of the zone during the period of this Agreement VIII. EVENTS OF DEFAULT AND RECAPTURE A. FaIlure to Commence Operation During Tenn of Agreement. In the event that the Facility IS not completed and does not begin operation by the January 1 following the completion of construction, no abatement shall be given for that tax year, and the full amount of taxes assessed against the property shall be due and payable for that tax year. H : LegDirl gws/Eco Dev/TaxAbateNuecesLo ftsCB DRes Page 5 of ; i In the event that the Owner fails to begin operation by the next January I, then the abatement Agreement shall terminate and all abated taxes during the period of construction shall be recaptured and paid within 60 days of such termination. B. Discontinuance of Operations During Term of Abatement. In the event the Facility is completed and begins operation but subsequently discontinues operations during the term of the Agreement after the completion of construction, for any reason except on a temporary basis due to fire, explosion or other casualty or accident or natural disaster, the Agreement may be terminated by the Governmental Unit, and all taxes previously abated by VIrtue of the Agreement shall be recaptured and paid within 60 days of such termination. C. Delinquent Taxes. In the event that the Owner allows its ad valorem taxes to become delinquent and falls to timely and properly follow the legal procedures for their protest and/or contest, thIS Agreement shall terminate and so shall the abatement of the taxes for the calendar year of the delinquency. The total taxes assessed without abatement for that calendar year shall be paid within 60 days from the date of termination. Penalty and interest shall not begin to accrue on the additional amount of taxes due as the result of recapture under this provision until the first day of the month following such sixty (60) day notice, at which time penalty and interest shall accrue in accord with the laws of the State ot Texas. Penalty and interest on the amount of taxes originally levied based upon the Abatement shall, of course. begin to accrue as of the date such taxes were due in accord with the laws of the State of Texas. D. Notice of Default. Should the Governmental Unit determine that the Owner is in default according to the terms and conchtlOns of this "greement, It shall notify the Owner that I t such default IS not cured wIthm sixty (60) days from the date of such notice ('Cure Penod'), then this Agreement may be terminated. In the event the Owner fails to cure "aId default during the Cure Pen ad, this Agreement may be temlinated and the taxes abated by vIrtue of the Agreement will he recaptured and paid as provided herein. E Actual Added Value. Should the Nueces County Appraisal District detetmine that the total level of Added Value during an) year of the term of this Agreement after completion of the Construction Phase is 100ver than the Estimated Added Value such that a lower percentage of Abatement is applicable, for each year during which an ~batement has been granted the difference between the tax abated and the tax which should have been abated based upon the actual Added Value shall be determined by the (Jovernmental Umt and paid Wlthin 60 days of notification to the Owner of such lerermmatIon Penalty and mterest shall not hegin to accrue upon such sum until the first day \)1' the month f()llc1wing "uch Slxtv (nO) day notice. at which time penalty and I nkrest shaJ 1 accfUl.' in accord with the laws of the State of Texas. F. ReductIOn in Rollback Tax Rate. If during any year of the period of Abatement any portion of the abated value is added to the current total value of the Governmental Unit but is not treated as 'new property value' (as defined in Section 26.012 (17) of the Texas Tax Code) tor the purpose of establishing the "effective maintenance rate" in H : LegDir/gws. EcoDeviT axAbate \luecesLottsCBDRes Page 6 of 1 calculating the 'rollback tax rate' in accord with Section 26.04 (c) (2) of the Texas Tax Code and If the Governmental Unit's budget calculations indicate that a tax rate in excess of the 'rollback tax rate' is required to fund the operations of the Governmental Unit for the succeeding year. then the Governmental Unit shall recapture from the Owner a tax in an amount equal to the lesser of the following: (II The amount of the taxes abated for that year by the Governmental Unit with respect t(1 the Property. (2) The amount obtained by subtracting the rollback tax rate computed without the abated property value being treated as new property value from the rollback tax rate computed with the abated property value being treated as new property value and multlplymg the difference by the total assessed value of the Governmental Unit. If the Governmentallnit has granted an abatement of taxes to more than one taxpayer, then the amount of the recapture calculated in accord with subparagraph (2) above shall be prorated on the basis (\fthe value of the abatement with respect to each taxpayer. ThlS event shall not constitute a 'default" under this Agreement, and the sixty (60) day Cure Penod provided above shall not apply Such recaptured taxes must be paid within thirty (30) days after notice thereof has been given to the Owner. Penalty and interest shall not begin to accrue upon such sum until the first day of the month following such thirty (30) day notice. at which time penalty and interest shall accrue in accord with the laws of the State of Texas. G. Continuation <,1' 1 elX Lien. The amount d'ta\ abated each year under the tenns of this Agreement shall be secured by a first and prior tax hen which shall continue in existence from :/ear to year until such time as thiS Agreement between the Governmental Umt and Owner IS fully pertC)TI11ed by Owner, or until all taxes, whether assessed or recaptured. are paid 111 fail. In the event of any default by Chvner. the governing body of the Governmental Unit reserves the right to terminate or 11111dify thiS Agreement. Owner shall be aHorded written notice of such default and the opportunity to cure as provided above. If Owner believes such action was Improper. Owner may file an appeal in Nueces County district court within sixty (60) days after \vritten notIce of the aCllon by the Governmental Unit Owner shall remit to the Governmental l 'nit, wlthm such 60-day period,my additional or recaptured taxes levied pursuant to the payment provislOns ofT exas Tax Code ~ 42.08. If the final determination of the appeal increases (lwner's tax liability abuVe the amount paid. Ov,ner shall remit the additional tax pursuant to I ax Code ~ 42.4:2 !t the final detenl11natlon of the appeal decreases Ovvnel"s tax liability, the (ic.vemmental Unlt shal1 reI llnd the ()wner the ditlerencc between the amount of tax paid and the amount nftax fell' Whlch O\\nel' IS lIable pursuant ((I Tax Code ~ 42.43. H. LegDir/gws/EcoDev/TaxAbate NuecesLoftsCRDRes Page 7 of l' IX. ADMINISTRATION Inspections. The Owner shall allow employees and/or representatives of the Governmental Unit to have access to the Property during the tenn of this Agreement to inspect the Facility to determine compliance with the terms and conditions of this Agreement. All inspections will be made only after the giving of twenty-four (24) hours prior notice and will only be conducted in such manner as to not unreasonably interfere with the construction and/or operation of the Facility. All inspections ~ ill be made with one or more representatives of the Owner and in accordance with Owner's safety standards. Appraisals. The Chief Appraiser of the Nueces County Appraisal District shall annually determine (i) the taxable value of the real and personal property comprising the Property taking mto consideration the Abatement provided by this Agreement, and (ii) the full taxable value without Abatement of the real and personal property comprising the Property. The Chief Appraiser shall record both the abated taxable value and the full taxable value in the appraisal records. The full taxable value figure listed in the appraisal records shall be used to compute the amount of abated taxes that are required to be recaptured and paid in the event this Agreement is terminated m a manner that results in recapture. Each year the Owner shall furnish the Chief Appraiser with such mformation outlined In Chapter 22, Texas Tax Code, as amended, as may be necessary for the admimstration of the Agreement specified herein. Annual Reports. Owner shall certIfy to the governing body of the Governmental Unit on or before April 1 each year that the Owner is in compliance with each applicable term of this Agreement. Additionally, during the initial four years of the term of property tax abatement, Owner shall prOVIde to the Governmental Unit an annual report covering those items listed on Schedule 1 attached hereto ;n order to document the efforts of the Owner to acquire goods and -;ervices on a local baSIS Such annual rep011 shall be prepared on a calendar year basis and shall be submitted to the Governmental t'nit no later than mnety (90) days following the end of each such calendar year. The annual report shall be accompanied by an audit letter prepared by an Independent accountmg fim' which has rt'\lewed the report 'Buy Local' ProvlslOn The Owner additionally agrees to give preference and priority to local manufacturers, suppliers, contractor.;; and labor. except where not reasonably possible to do '0 without added expense, ,ubstantial inconvenience, or sacrifice in operating efficiency. In any 'ouch exceptIon cases invo!\ 109 purchases Ilver $10,000.00 a Justitication tor such purchase shall be included m the annual report The Owner further acknowledges that it is a legal and moral obligation of persons receiv mg property lax abatements to favor local manufacturers, suppliers, contractors and laboL al other factors being equal. For the purposes of this provision, the term Incal" a.s. used to descnbe manufacturers. suppliers, contractors and labor shall include firms, businesses, and perscl!1s wh,) reSIde In or maintain an office in either Nueces County or San Patricio County In the eveni of a breach ,)( the buy local provlsion, the percentage of abatement shall be proportionately reduced bv the amount the disqualified contract bears to the total constructIOn cost for t he pro, ecl H :LegDir/gws/EcoDe\ TaxAbate \1uecesLoftsCBDRes Page 8 of] C X. ASSIGNMENT The Owner may assign this Agreement to anyone or more corporation(s), 50% or more of the outstanding voting securities of which are owned, directly or indirectly, by one of the Owners, or any partnership(s) or limited partnership(s) in which an Owner, or a subsidiary of an Owner, IS a general partner. The Owner may assign this Agreement to any other new owner or lessee of the Facility with the prior written consent of the Governmental Unit, which consent shall not be unreasonablv withheld, Any assignment shall provide that the assignee shall mevocably and unconditionally assume all the duties and obligations of the assignor and become the Owner upon the same terms and conditions as set out in this Agreement. In the event more than one entity is Owner hereunder. the obligations of said entities shall be joint and several. Any assignment of this Agreement shall be to an entity that will provide substantially the same improvements to the Property, except 10 the extent such improvements have been completed. No assignment shall be appro\ ed if the Owner or any assignee IS indebted to the Governmental Unit for ad va]nrem taxes or other obligatIOns XI. NOTICES Any notice required tc. be given under the provisions of this Agreement shall be in writing and shall he duly served when it shall have been deposited, with the proper postage prepaid thereon. and duly registered or certified. return receipt requested, with the United States Postal Service, addressed to the Governmental Unit or Owner at the following addresses. If mailed, any notice or commUnIcation shall be deemed to be received three days after the date of deposit in the Umted States \1ai r nless O1hemise provlded in thi5 Agreement all notices shall be delivered t" the tfdll1wing :ddre~se" To the (iovernmental { nit: ell Y OF CORPCS ('HRlSTI, TEXAS 1 2 tJ 1 Leo pard Street P ) Box 9277 Curpus Christl, Texa~ 78469 "-Un: Citv Manager I 0 the Owner NLECES LOFT APARTMENTS. LP, 1]411 PM 1560 Helotes. Texas 78023 Either party may deSignate a different address by' giving the other party ten days' written notice This Agreement ha:-. belm executed h\ the parties III multiple onginals or counterparts, each having full force and effect. Executed thIS day (t ,2006 H. LegDir/gws EcoDevl axAbate NuecesLoftsCBDRes Page90fl GOVERN MENTAL CNP ATTEST: By: Armando Chapa, City Secretary APPROVED AS TO FORM: By: 11.t4L(~JJif, . 01:; W. Smith, Assistant City Attorney for Mary Kay Fischer, City Attorney ( )WNER H: LegDir/gws. Eco Dev/T axAhate! NuecesLo ftsCB D Res Page 10 of 11 CITY OF CORPUS CHRISTI, TEXAS By: George Noe, City Manager NUECES LOFT APARTMENTS, L.P. By: William L. Hoover President of General Partner SCHEDULE J Buy Local' Annual Reports fhe following mfonnation shall be reported to the Governmental Unit on a calendar-year hasis during the first four years ofthe tax abatement program: Dollar amount spent for materials* (local). Dollar amount spent for materials (total). ~ Dollar amount spent for labor** (local). ..f Dollar amount spent for labor** (total). " Number of Jobs created in the construction project (local). h. Number of Jobs created in the construction project (total). Number of .lobs created on a permanent baSIS (local). x Number of]obs created on a permanent baSIS (total). * 'Materials']s defined to mclude all matenals used in excavation, site improvement, demolitlOn. concrete. structural steel. fire proofing. piping, electrical. instruments, paintings and scaffolding, insulation. temporary construction facilities, supplies, equipment rental in construction, small tools and consumables. This term does not include major items of machinery and eqUlpment not readlly-wailabk 10cal1\ ** 'Labor 15 defined to melude al lahor 111 connection vnth the excavation, site improvement, demolitIOn. concrete construction, structural steel. fire proofing, equipment placement, piping, electrical. Instruments. painting and scaffolding, insulation. construction services, craft benefits, payroll burdens, and related labor expenses. This term does not include engineering services in connectIOn with the proJect design. The term "local" as used to describe manufacturers. suppliers, contractors and labor shall include finns, buslllesses. and persons \\'ho reside 111 or mamtain an office in either Nueces County or San Patn ci, \ Cuunh H : LegDiri gws/EcoDev/T axA bate NuecesLlhsCBDRes Page 1 [ oj 11 Exhibit A Corpus Christi Project Plan May 23. 2006 This project involves the adaptive reuse of a historic downtown building, the "Nueces Building" at 317 Peoples Street. The project will convert the building into 66 rental units comprised of lofts, one bedroom and two bedroom. The building is currently vacant. Permanent llnprovemenb $ 2,787,786 Estimated capital $ 2,787,786 H: LegDir/gws/EcoDe\ ITaxAhate NuecesLoftsCBDRes Page 12 of 1 EXHIBIT 'B' [ract I Lot 7 and the north 3.7 feet of Lot 8, Block 4, Beach Portion, City of Corpus Chnsti, Nueces County, Texas, and Tract 2. Lots 1 and 2 and the east 105 feet of Lots 3 and 4, Block II, Beach Portion, City ,,[ Corpus Christl, Nueces County, Texas. also known as 317 Peoples Street, Corpus Christi. Texas. HLegDir/gws EcoDev/T axAbate NuecesLoftsCBDRes Page 13 of ! 3 30 CITY COUNCIL AGENDA MEMORANDUM City Council Action Date: May 30, 2006 AGENDA ITEM: ;;., Ordinance amending the Corpus Christi City Code of Ordinances, Chapter 12- Boats, Bays and Waterways, Article III -- Marina, Section 12-46 -Prohibition against living aboard water craft, by changing "Prohibition against" to "Policy regulating" and 'Jlrecting Marina Superintendent to adopt a live aboard policy and limiting the prohibition to "Except as authorized by the Policy": providing for penalties under Section 1-6, City Code of Ordinances: providing for severance; and providing for uublication B Resolution authorizing new Parks and Recreation Slip Rental Fees for live aboards at the City Marina under revised Section 12-46, Code of Ordinance; providing for publication; Droviding for effective date; and providing for severance. ISSUE: The Water/Shore Advisory Committee at their April 6, 2006 regular meeting voted 1 to recommend that the City Council and City Staff amend the Corpus Christi City Code )f Ordinances. Chapter 1:: - Boat Bays and Waterways, Article 111- Marina, Section 12-46- Prohibition Against living Aboard Water Craft, by changing" Prohibition Against" to "Policy Regulating' and directing Marina Superintendent to adopt a "Live Aboard Policy". REQUIRED COUNCIL ACTION: Amending of Ordinance Section 12-46. PREVIOUS COUNCIL ACTION: June 22, 1999 a Motion approving a six (6) month moratorium on enforcement of Marina Code Sections 12-41, 12-45.1, and 12-79 to allow current live aboards to remain at the Corpus Christi Marina and allow staff to terminate the slip rental contracts of the live aboards for violating the Code and the slip rental contract .)nce the June 30 1999 deadline has been met PRESENTATION: Presentation to the City CounCil June 22, concerning Live Aboards at the Corpus Christi Marina FUNDING: N/A CONCLUSION AND RECOMMENDATION: Staff recommends that the City Council approve the items as presented. k, Director Recreation Department Attachment: Background Information Live Aboard Rate Chart Plus Metered Utilities BACKGROUND INFORMA liON uve aboard Issues have always been a hot point of discussion for any marina. The Corpus Christi Manna IS no different. On March 5, 1975 the City Council enacted Ordinance 12512 Corpus Chnsti Code Number 12-45 1) which prohibits living aboard water craft. City staff has worked to apply all manna rules and regulations to all slip tenants. During 1998-99 Marina staff asked various slip tenants if they were living aboard their boat and the tenants said no and Marina staff took them at their word. What may have been a minor problem with 5-6 violations escalated to 25-30 live aboard violators. in mid-May 1999. Marina staff sent all of our slip tenants notice that any tenants that were in non-compliance with the live aboard rules and regulations would have until June 30, 1999 to come into compliance This notice gave tenants, who were not in compliance, six 16) weeks to make arrangements to comply or move out. While Manna staff was not against live aboards in philosophy, the policies and Infrastructure to accommodate and support live aboard practices were not in place at that time. For a successful live aboard environment to exist. the City would need well-defined policies, fees and infrastructure that govern the action and accommodations of live aboards Three new 'Boaters Facilities" with bathrooms, showers and laundry facilities were built in 2002, 2005 and 2006 on each of the T & L-Heads which now would support the Infrastructure to accommodate live aboard practices in the Corpus Christi Marina. Marina staff support the "Amending of Ordinance Section 12-46" to accommodate marina tenants whom comply with the rules and regulations to live aboard their vessels. This would tJe a benefit to marina customers EXHIBIT A Live Aboard Rate Chart Plus Metered Utilities ~ ~P~rMonth* 30' - 34' $500.00 35' - 45' $700.00 48' - 55' $850.00 58' - 70' $1,050.00 71' - 90' $1,395.00 91' - 115' $1,780.00 116' -125' $1,930.00 126' -150' $2,325.00 151' & Above $16.00 Per Foot *Plus Metered Utilities * * * * * * * * Live Aboard Potential Per Dock 10 - R Pier o - MORF Pier 5 - L Pier o -M,Pier 4 -A Pier 4 - B Pier 4 - C Pier 4 - 0 Pier 4 - Lawrence Street Stem 5 - E Pier 6 - F Pier 5 - G Pier 5 - H Pier - 56 Potential live Aboard Accommodations Page 1 of 4 AN ORDINANCE AMENDING THE CORPUS CHRISTI CITY CODE OF ORDINANCES, CHAPTER 12 -BOATS, BAYS AND WATERWAYS, ARTICLE 111_ MARINA, SECTION 12-46 - PROHIBITION AGAINST LIVING ABOARD WATER CRAFT, BY CHANGING "PROHIBITION AGAINST" TO "POLICY REGULATING" AND DIRECTING MARINA SUPERINTENDENT TO ADOPT A LIVE ABOARD POLICY AND LIMITING THE PROHIBITION TO "EXCEPT AS AUTHORIZED BY THE POLICY"; PROVIDING FOR PENALTIES UNDER SECTION 1-6, CITY CODE OF ORDINANCES; PROVIDING FOR SEVERANCE; AND PROVIDING FOR PUBLICATION. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS. THAT: SECTION 1. The Corpus Christl City Code Of Ordinances, Chapter 12 - Boats, Bays and Waterways, Article III - Marina, Section 12-46 - Prohibition against living aboard water craft, is amended by changing the "prohibition" to "policy regulating" and directing the Marina Superintendent to adopt a Live Aboard Policy regulating living aboard water craft, and limiting the prohibition to "except as authorized by the policy", to read as follows: "Chapter 12 - BOATS, BAYS AND WATERWAYS ~ * * "ARTICLE 111- MARINA * * * * "Sec. 12-46. Policy reaulatina Prohibition against living aboard water craft. (a) The Marina Superintendent shall adopt and administer a Live Aboard Policy reQulatina Iivinq aboard water craft at the Marina. tQl~Except as authorized by the Live Aboard Policy, no Ne water craft whatsoever that which is being used by the persons aboard as a dwelling unit shall be permitted to moor, tie up or anchor within the marina, its basins, fairways, and anchorage areas, as thes, ~ areas are defined and described in the United States Corps of Engineers geodetic chart and map of said areas. LfLfBt-As used In this section: DweHing means any water craft that wJ::H.sR is being used as a permanent abode or residence in which a person or persons have the intention of remaining. Consideration will be given to whether the person or persons residing thereon maintain another C:\(Doyle. 03.06 IORD2003.06\Ordinanc .es106 0 330DC. AdoptL ',AbordPolicy. Rev;' 46 Ord. doc Page 2 of 4 dwelling place, but whether or not another dwelling place is maintained shall not be determinative of whether the water craft is being used as a dwelling unit. Transient craft means a vessel that does not occupy a boat slip in the city marina by virtue of any contractual agreement with the city or other authorized entity. Transient slip means any marina boat slip occupied by a transient craft. i.QltBt-Exceot as authOrized by the Live Aboard Policy. use Y-se of a water craft other than a transient craft for more than fifteen (15) days during any calendar month as a dwelling is prohibited. i.!tl.(4}- Transient craft shall be permitted to tie up, moor or anchor in an area in the marina assigned by the marina supervisory staff. ULfet- The transient craft's owners, crews or guests may stay aboard the craft for a period of up to sixty (60) consecutive days, provided: (1) A transient craft permit is obtained from the office of the marina superintendent designating the craft as a temporary dwelling for a period not to exceed sixty (60) consecutive days from date of issue; (2) The transient craft permit is presented to city staff upon request; and (3) Further provided the transient craft's owners, crews, and guests comply with all other rules and regulations of the marina during the transient craft permitted period. 1.9lfB--A transient craft permit may be renewed one time during any twelve-month period by the marina superintendent or his designated representative upon a clear showing by the transient craft's owners, crews, or guests that all rules and regulations of the marina have been complied with during the previous transient craft permitted period. ilJl.<<tt- The violation of any applicable provision of this Code by the transient craft's owners. crews, or guests during a permitted period may subject the transient craft permit to immediate revocation by the marina superintendent. ULfRt.A regular slip tenant may stay aboard his/her craft while the craft is tied up, moored or anchored within the marina at the approved assigned slip provided: (1 ) A temporary stay aboard permit is obtained from the office of the marina superintendent designating the craft as a temporary dwelling for designated days not to exceed a total of fifteen (15) days during the calendar month specified in the permit; during any calendar month the total stay aboard days shall not exceed a total of fifteen (15) days: (2) The temporary stay aboard permit IS presented to city staff upon request; and C:\(Doyle .03. 06\ORD2003 .06\Ordinanc.es\06. 0330DC.o,doptLiv .Abord. Policy. Rev 12.46. Ord .doc Page 3 of 4 (3) Further provided the regular slip tenant complies with all other rules and regulations of the marina during the temporary stay aboard permitted period. UL~No raw sewage, garbage, junk, waste, oil or any other substance whatsoever that might pollute or damage the aesthetics or the water quality shall be deposited or permitted to be deposited in the waters of the marina, its basins, fairways and anchorage areas !..!sl.ffi-No person or persons shall be permitted to use the land areas of the Corpus Christi Municipal Marina, the L-head and T-heads, or any other land area of the marina as a dwelling place for any length of time, whether the person or persons be in a vehicle. tent, any improvised shelter or without shelter. As defined herein, an overnight stay shall constitute using the land area as a dwelling place. SECTION 2. It is the definite intent of the City Council that every section, paragraph, subdivision, phrase, word and provision of this ordinance shall be given full force and effect for its purpose. Therefore, if any section, paragraph, subdivision, clause, phrase, word or provision of this ordinance shall be held invalid or unconstitutional by final judgment of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase. word or provision of this ordinance. SECTION 3. Violation ot this ordinance or requirements implemented under this ordinance shall be punished under Section 1-6 of the City Code of Ordinances. SECTION 4. Publication shall be made in the official publication of the City of Corpus Christi as required by the City Charter This ordinance shall be effective upon publication C:\(Doyle.03.0610RD2003.06\Ordinanc.esI06 0330DCAdoptLiv.Abord Policy Rev 12 46.0rd.doc Page 4 of 4 The foregoing ordinance was read for the first time and passed to its second reading on this the __ day of ___ ___, 2006, by the following vote: Henry Garrett -'-~-'-_. Rex A. Kinnison Brent Chesney -'-'P'--'-- John E. Marez Melody Cooper _. ,-._--- Jesse Noyola Jerry Garcia Mark Scott William Kelly '-.-'--..- The foregoing ordinance was read for the second time and passed finally on this the _ day of_______, 2006, by the following vote: Henry Garrett Rex A. Kinnison Brent Chesney John E. Marez Melody Cooper Jesse Noyola Jerry Garcia Mark Scott WiHiam Kelly PASSED AND APPROVED on the ____ day of _ ,2006 ATTEST: CITY OF CORPUS CHRISTI Armando Chapa City Secretary Henry Garrett Mayor ~ 30 M:rC~006___ Doyle D. Curtis Chief, Administrative Law Section Senior Assistant City Attorney For City Attorney C:I(Doyte.03.0610RD2003.06\Ordinanc esl06. 0330DC Adoptliv.Abord. Policy Rev 12.46. Ord .doc Page 1 of 4 RESOLUTION AUTHORIZING NEW PARKS AND RECREATION SLIP RENTAL FEES FOR LIVE ABOARDS AT THE CITY MARINA UNDER REVISED SECTION 12-46, CODE OF ORDINANCES; PROVIDING FOR PUBLICATION; PROVIDING FOR EFFECTIVE DATE; AND PROVIDING FOR SEVERANCE WHEREAS, Section 36-3 of the Code of Ordinances requires City Council approval by motion or resolution for creation of any' new rental rates. or increase of existing rental rates b\t more than 2~, pHcent. hr Parks and Recreation Department facility rental; and WHEREAS, Section :\6- of the Code of Ordinances requires City Council approval by motion or resolution for creation of any new user fees, or increase of existing user fees by more than 25 peru~nt for Parks and Recreation Department facility use. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTL TEXAS: SECTION 1. The Cit} Council approves new Parks and Recreation Department slip rental fees for live aboarcis at thE- City r-v1arina (under revised Section 12-46, Code of Ordinances I. as ShOW'l If! Exhibit A attached SECTION 2. ThiS r8solwlon IS effective upon publication SECTION 3. Publication will be made In the official publication of the City of Corpus r:hristi as required ["'y Ihe City Charter ')f the City of Corpus Christi. CI(Doyle 0306'ORD200306IResol'jt! onsD6Ci524DC Parks!; RecFees L. 'eAb'd Resoldoc Page 2 of 4 SECTION 4. The City Council intends that every section, paragraph, subdivision, phrase word and provision of this resolution shall be given full force and effect for its purpose. Therefore, If any section, paragraph, subdivision, clause, phrase, word or orovision of this resolution is held invalid or unconstitutional by final judgment of a court of competent jurisdiction that judgment shall not affect any other section, paragraph, subdivision clause phrase word or provision of this resolution. ATTEST: CITY OF CORPUS CHRISTI .- _.~_.._---,-..- "-', _.,--_._._-_..._----~-- Armando Chapa City Secretary Henry Garrett Mayor oyle Curtis Chief, Administrative law Section Senior Assistant City Attorney For City Attorney C:\(Ooyle 03 06:CJRD200306\Res'Jluti.ons\060524DC Parf s&RecFees LlveAbrd Resol.doc Page 3 of 4 ~orpus Christl. Texas _ day of 2006 The above resolution was passed by the following vote Henry CJarrett Brent Chesney Melody Cooper Jerry Garcia William Kelly Rex A. Kinnison John E. Marez Jesse Noyola Mark Scott C\(Doyle 03 06,oRD2003.06\Resolul; ons\060'i24DC P~rks& RecFee,; Lt" 9.Abr;J Pe's.'1 doc Page 4 of 4 EXHIBIT A Live Aboard Rate Chart Plus Metered Utilities Boat LOA Rate Per Month* 30' - 34' $500.00 35' - 45 $700.00 46' - 55 $850.00 56' - 70' $1,050.00 71' - 90' $1,395.00 91'-115' $1,780.00 116'-125' $1,930.00 126' - 150' $2,325.00 151' & Above $1600 Per Foot *Plus Metered Utilities 0:-* '" -,0;- ;* .,1,;. .;.; .~ Live Aboard Potential Per Dock 10 - R Pier o - MORF Pier 5 - L Pier o - M Pier 4 - A Pier 4 - B Pier 4 - C Pier 4 - 0 Pier 4 - Lawrence Street Stem 5 - E Pier 6 - F Pier 5 - G Pier 5 - H Pier 56 Potential Live Aboard ,A,ccommodations C:\(Doyie03,Ob\ORD2003 06\Resolut: 005,06 0524DC Park,&.RecFees I IveADrd Pesol.doc 31 CITY COUNCIL AGENDA MEMORANDUM PRESENTATION AGENDA ITEM: Overview of Proposed FY2006-07 Operating Budget STAFF PRESENTER(S): Name 1. Oscar R. Martinez 2. Eddie Houlihan 3. Title/Position Department Assistant City Manager Admin. Services Assistant Director Management and Budget OUTSIDE PRESENTER(S): Name Title/Position Oraanization 1. 2. ISSUE: The City Charter requires, the City Manager to submit a budget proposal to the Council at least 60 days prior to the beginning of the fiscal year. BACKGROUND: No formal action is required at this time. This initial presentation will include a general overview of the FY2006-07 budget process and the format. Subsequent presentations in June will include a more detailed overview of each of the operating funds. The City Council is scheduled to adopt the FY006-07 Annual Budget on July 18 and 25, 2006 , Additional Background Exhibits