HomeMy WebLinkAboutC2022-042 - 3/11/2022 - NA DEFERMENT AGREEMENT
STATE OF TEXAS §
COUNTY OF NUECES §
This deferment agreement ("Agreement") is entered into between the City of
Corpus Christi ("City"), a Texas home-rule municipality, and ETX Bell
Properties, LLC ("Developer"), a Texas Limited Liability Company in order to defer
the completion of certain required public improvements prior to recording the final
plat of Park Springs IHS, Block 1, Lots 1 through 3 (the "Plat"). A copy of the
Plat is attached and incorporated by reference into this Agreement as Exhibit 1.
WHEREAS, the Developer is obligated under Section 8.1 of the Unified
Development Code ("UDC") to construct the required public improvements before the
final Plat is endorsed by the City's City Engineer or Development Services Engineer,
as applicable ("City Engineer");
WHEREAS, the Developer is seeking to delay the construction of the required
public improvements ("Deferred Improvements") shown in Exhibit 2, which exhibit is
attached and incorporated by reference into this Agreement, and to have the Plat filed
immediately with the County Clerk of Nueces County, Texas;
WHEREAS, in order to have the Plat filed prior to completion of the Deferred
Improvements, the Developer agrees to deposit with the City a form of pre-approved
financial security authorized by Section 3.30.1 of the UDC in the amount
representing 110% of the estimated cost of constructing the Deferred Improvements
as shown in the cost estimate, which cost estimate is attached and incorporated by
reference into this Agreement as Exhibit 3;
WHEREAS, water and sewer services are available to serve the subdivision, and
the Developer has completed all other subdivision requirements, park dedications, park
deferment agreements, maintenance agreements, and all special covenants;
WHEREAS, the Assistant City Manager and City Attorney have both approved
this transaction; and
WHEREAS, the Developer is entering into this Agreement pursuant to Section
8.1.10 of the UDC in order to defer construction and record the final Plat.
NOW, THEREFORE, for the consideration set forth in this Agreement, the City and
Developer agree as follows:
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Standard Form Deferment Agreement 10/27/2022 13B Page 1 of 9
SCANNED
1. Preamble.
The above preamble and all defined terms therein are incorporated in this
Agreement for all purposes. In addition, the preamble to this Agreement is
included as substantive content in this instrument and upon which both parties to
this Agreement have relied and will continue to rely during the term of this
Agreement.
2. Consideration.
In consideration of the Developer's request to enter into this Agreement and the
posting of approved financial security, the City agrees to waive the requirement
that construction of the Deferred Improvements be completed before the final Plat
is endorsed by the City Engineer and filed for record with the County Clerk of
Nueces County. The City further agrees to allow the Developer to delay
construction of the Deferred Improvements per the terms of this agreement.
3. Improvements.
Developer covenants to construct and install, at Developer's expense, all external
and internal subdivision improvements required to comply with City ordinances,
regulations, and policies governing subdivision approval for the Plat, including
Deferred Improvements as shown in Exhibit 2 and Exhibit 3.
4. Financial Security.
As a condition of this Agreement, the Developer agrees to deposit with the City
$40,785.80 as a form of financial security authorized in Section 3.30.1 of the
UDC, upon execution of this Agreement or before the filing of the Plat. The
financial security must provide for 110% of the estimated cost of constructing the
required Deferred Improvements, as those costs are shown in Exhibit 3. The
City Engineer will not endorse a plat until the financial security is deposited with
the City. The Developer acknowledges and specifically agrees that in the event
the financial security required by this Agreement has not been deposited with
the City before the filing of the Plat in the official public records of Nueces County,
this Agreement is NULL AND VOID WITHOUT ANY NOTICE OR FURTHER
ACTION REQUIRED BY EITHER PARTY.
5. Improvement Completion.
Deferred Improvements are to be completed in conformance with City's engineering
Standards within 12 months from the execution of this Agreement.
6. Letter of Credit.
If a letter of credit is utilized as financial security under this Agreement, the
content of the irrevocable letter of credit must be ( 1 ) pre-approved by the
City's Director of Financial Services ("Finance Director") and City Attorney, (2) be
issued by a banking institution having a local branch office within the State of
Texas (Corpus Christi location preferred), (3)be valid for a period of 12 months
from the date of issuance or longer, (4 ) automatically renew for successive
one-year periods, and ( 5 ) require, as sole documentation for payment, a
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statement in writing from the City's Assistant City Manager setting forth (i) the
circumstances of default giving rise to the draft or (ii) the Developer's failure to
furnish proof of renewal not less than thirty (30) days prior to the expiration
of the then-current letter of credit [see the section below regarding renewal], and
accompanied by a properly drawn draft not to exceed the face value of the
letter of credit.
The Original Letter of Credit is to be delivered by either personal delivery, courier
service with a signature required by the recipient, or by registered or certified
United States mail, postage prepaid, return receipt requested. The Original Letter
of Credit is to be delivered to:
Director of Finance and Procurement
City of Corpus Christi
1201 Leopard St.
Corpus Christi, TX 78401
7. Letter of Credit Renewal.
The Developer must ensure that the letter of credit is kept valid at all times. The
Developer must renew the letter of credit before expiration. Proof of such renewal
must be received by the City at least thirty 30 days prior to the expiration of the
then-current letter of credit. If the City does not receive timely renewal or cash
in lieu thereof is not deposited as financial security with the City, the City may,
after 10 days prior written notice to the Developer, call (redeem) the letter of credit
for failure to timely renew. If the letter of credit is called for failure to renew
timely, the funds will be held in an account as if the Developer had posted cash
for this Agreement in lieu of the letter of credit. The City shall not be liable for
interest on any letter of credit so called, nor shall the City be liable to the
Developer for the accrual or payment of interest on any financial security
posted by the Developer pursuant to this Agreement.
8. Financial Security Modification.
In accordance with Section 8.1.10.B of the UDC, an increase in financial security
from the Developer may be required on an annual basis if the City deems itself,
in the sole discretion of the City, insecure as to the prospect of payment or
performance on a demonstrated reasonable basis or it reasonably determines
that the financial security does not provide for 110% coverage of the estimated
construction costs.
9. Time is of the Essence.
Time is of the essence in the performance of this Agreement.
10. Improvements Approval.
Detailed construction drawings must be provided by the Developer and approved
by the City's Departments of Development Services and Engineering prior to the
start of construction of the Deferred Improvements.
Standard Form Deferment Agreement 10/27/2022 BB Page 3 of 9
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11. Improvements Construction Standards.
The Developer shall construct the Deferred Improvements in accordance with the
City's engineering standards in effect at the time of construction and in
accordance with the construction drawings approved by the City departments
pursuant to the section above.
12. Acceptance of Improvements.
Upon completion of the Deferred Improvements by the Developer as verified by
the Assistant City Manager and Director of Development Services and within the
time period stated in section 4 of this Agreement, acceptance of the Deferred
Improvements by the City Engineer, and compliance by the Developer with the
remaining terms of the Agreement, the City Engineer shall:
a. Immediately release the Developer from the obligations to construct the
Deferred Improvements by mailing a release letter to Developer at the
address shown above Developer's signature line in this Agreement.
b. Return to the Developer within 60 days of the completion of the
construction of the Deferred Improvements and settlement of the actual
construction costs, or within 60 days of acceptance of the Deferred
Improvements by the City, whichever is later, any balance remaining of all
monies received by the City from the Developer.
13. Warranty.
Developer fully warranties the workmanship of and function of the Deferred
Improvements and the construction thereof for a period of two years for streets,
curbs, gutters, and sidewalks and one year for all other improvements from and
after the date of acceptance of the improvements by the City Engineer.
14. Default.
If Developer defaults in any of its covenants or obligations under this Agreement
[excluding failure to timely renew a letter of credit, or post additional security, for
which the default provisions are separately addressed in this document], the City
Engineer shall send written notice to the Developer [and may send notice to the
Developer's project engineer ("Project Engineer"), if the City knows such
address], advising the Developer of the default and giving the Developer 30 days
from date of receipt of the notice letter to cure the default. If the Developer fails
to cure the default after receipt of notice and opportunity to cure, the City
Engineer may transfer any funds received to the appropriate fund of the City in
order to complete the Deferred Improvements. In the event there are any funds
received by the City from the Developer remaining after the City has completed
construction of the Deferred Improvements, the excess funds will be refunded to
the Developer within 60 days of the completion of construction of the Deferred
Improvements and settlement of the actual construction costs.
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If the Developer has not begun construction of the Deferred Improvements at
least 30 days prior to the completion date stated in section 4 of this Agreement,
the Developer agrees that the City may, after notice to the Developer, accelerate
payment or performance or require additional financial security when the City
deems itself at risk as to the prospect of performance or payment based on a
demonstrated reasonable basis. In addition, if the Developer defaults and fails
to deposit any increased security after notice and an opportunity to cure, the City
may transfer the cash funds received or call (redeem) the letter of credit and
transfer the funds (if the financial security provided was in the form of a letter of
credit) to the appropriate City account, and the City may begin completion of the
construction of the Deferred Improvements. If City constructs all or any part of
the required Deferred Improvements and the funds on account prove inadequate
for the City to complete the Deferred Improvements, the Developer shall
reimburse the City for any additional costs related to the completion of the
Deferred Improvements within 30 days after the City completes the required
Deferred Improvements and invoices the Developer.
15. Notice.
Unless otherwise stated in this Agreement, any notice required or permitted to be
given by either party shall be in writing and must be provided by personal
delivery, fax, or certified United States mail, postage prepaid, return receipt
requested, and notice is deemed sufficiently given if addressed to the
appropriate party at the address shown for the party in the signature block of
this Agreement or faxed to the fax phone number shown in the signature block
for the party. By notice to the other in accordance with the provisions of this
section, any party may specify a different address or addressee for notice
purposes.
16. Plat Vacation.
The City and Developer agree that, if the Developer formally vacates the current
Plat with approval of the Planning Commission prior to the deadline for
completion of construction of the Deferred Improvements, any money received
by the City from the Developer remaining on deposit will be released and
immediately returned to the Developer.
17. Certificate of Occupancy.
The City reserves the right not to issue certificates of occupancy for all or any
portion of the real property that is the subject of the Plat until the Deferred
Improvements are constructed, installed in working order, and accepted by the
City Engineer in accordance with the provisions of this Agreement.
18. Assignment.
No party may assign this Agreement or any rights under this Agreement without
the prior written approval of the other party and by amendment to this
Agreement.
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19. Covenant Running with the Land.
By execution of this Agreement, the Developer covenants to construct the
Deferred Improvements required by this Agreement, and this covenant shall be a
covenant running with the land. Therefore, at the Developer's expense, the City
shall file this Agreement in the official public records of Nueces County.
20. Modifications.
No changes or modifications to this Agreement may be made, nor any
provisions waived unless the change or modification is made in writing and
signed by persons authorized to sign agreements on behalf of each party.
21. Severability.
If, for any reason, any section, paragraph, subdivision, clause, provision, phrase,
or word of this Agreement or the application thereof to any person or circum-
stance 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 Agreement, 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 thereby, for it is the definite intent of the
parties to this Agreement that every section, paragraph, subdivision, clause,
provision, phrase, or word of this Agreement be given full force and effect for its
purpose.
22. Disclosure of Interest.
The Developer shall, in compliance with Section 2-349 of the City's Code of
Ordinances, complete the City's Disclosure of Interests form, which is attached to
this Agreement as Exhibit 4, the contents of which, as a completed form, are
incorporated in this Agreement by reference as if fully set out here in its entirety.
23. Compliance with Laws.
The Developer shall comply with all federal, state, and local laws, regulations, and
rules applicable to the performance of this Agreement.
24. Governing Law and Venue.
This Agreement shall be construed under and in accordance with the laws of the
State of Texas, and all obligations of the parties created pursuant to this
Agreement are performable in Nueces County, Texas. Venue for all actions
arising from or pursuant to this Agreement shall be brought in Nueces County,
Texas.
25. Strict Performance.
Strict performance of the provisions of this Agreement by the Developer is
required by the City as a condition of this Agreement. The Developer specifically
acknowledges and agrees that failure by the Developer to adhere or comply with
any term, condition, or requirement of this Agreement constitutes a default of this
Agreement.
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26. Authority to Act.
All signatories to this Agreement warrant and guarantee that they have the
authority to act on behalf of the person or entity represented and make this
Agreement binding and enforceable by their signature.
27. Termination. This Agreement terminates upon acceptance of all Deferred
Improvements by the City, completion of all Deferred Improvements by the City, or
upon plat vacation.
28. Effective Date.
This Agreement is executed in one original document. This Agreement becomes
effective and is binding upon and inures to the benefit of the City and Developer
and their successors and assigns from and after the date the Agreement has
been executed by all signatories.
Attached and incorporated by reference into this Agreement:
Exhibit 1 — Plat
Exhibit 2 — Required Public Improvements
Exhibit 3 — Cost Estimate
Exhibit 4 — Disclosure of Interests
Standard Form Deferment Agreement 10/27/2022 BB Page 7 of 9
EXECUTED IN ONE ORIGINAL this 1 ` day of ' -.11/4..C,0 , 2022.
CITY OF CORPUS CHRISTI
P. O. Box 9277
Corpus Christi, TX 78469-9277
(361) 826-3240 Office
(361) 82 28 Fax
y,
e J. R ymond III,
Dire or o Development Services
THE STATE OF TEXAS §
§
COUNTY OF NUECES §
This instrument was acknowledged before me on fr4I(1h II , 2022, by
Albert J. Raymond Ill, Director of Development Service for the City of Corpus Christi,
Texas.
4;p�;/, YVETTE WALLACE
•=i) �o;Notary Public,State of Texas
, ...:$7,,.: Comm.Expires 08-06-2025 / 1.
''A.2i, Nss Notary ID 133255582
N••� Public's Signature
Approved to Legal Form:
Buck Brice
Assistant City Attorney
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II
DEVELOPER
ETX Bell Properties, LLC
101 E. Cherokee Street
Jacksonville, TX 75766
Phone: (90 586-1524
/IP
Drew • rrett,
Manager
THE STATE OF TO Xer) §
COUNTY OF I 9 Yb1(OQ §
This instrument was acknowledged before me on i•-k(),K h 3 , 2022, by
Drew Durrett, Manager for the ETX Bell Properties, LLC.
me�gg, Jordan Newton
,,,, MY CprrN
mgn Exp es
.-40 N ary Public's Signature
oano��a
' ID No.1 �p
OF
•
Standard Form Deferment Agreement 10/27/2022 BB Page 9 of 9
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EXHIBIT 3
PROJECT: Park Springs HIS, Block 1, Lots 1-3 DATE: February 14th, 2022
Engineer: MURRAY F. HUDSON, P.E.
T JOB NO: 43223.C1.00
ESTIMATED
ITEM DESCRIPTION UNIT QUANTITY UNIT PRICE TOTAL AMOUNT
A. Proposed Improvements:
Al Demolition of Existing Sidewalk LS 1,086 $2.00 $2,172.00
A2 Demolition of Exisitng ADA Ramp EA 1 $1,000.00 $1,000.00
A3 ADA Ramp with Detectable Warning EA 1 $4,250.00 $4,250.00
A4 Sidewalk SF 3.707 $8.00 $29,656.00
Subtotal Part A: Proposed Improvements $37,078.00
Construction Total: $37,078.00
PG 1 of 1
EXHIBIT 4
,?us DISCLOSURE OF INTERESTS
o - ' •
City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seeking
to do business with the City to provide the following information. Every question must be
v answered. If the question is not applicable, answer with"NA".
1052
NAME: ETX Bell Properties, LLC
STREET:
101 E. Cherokee Street CITY: Jacksonville, Texas ZIP: 75766
FIRM is:°Corporation °Partnership ()Sole Owner °Association °Other
limited liability company
DISCLOSURE QUESTIONS
If additional space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the names of each "employee" of the City of Corpus Christi having an "ownership interest"
constituting 3% or more of the ownership in the above named"firm".
Name Job Title and City Department(if known)
N/A
2. State the names of each "official" of the City of Corpus Christi having an "ownership interest"
constituting 3% or more of the ownership in the above named "firm".
Name Title
N/A
3. State the names of each "board member" of the City of Corpus Christi having an "ownership interest"
constituting 3% or more of the ownership in the above named "firm".
Name Board, Commission, or Committee
N/A
4. State the names of each employee or officer of a "consultant"for the City of Corpus Christi who worked
on any matter related to the subject of this contract and has an "ownership interest" constituting 3% or
more of the ownership in the above named "firm".
Name Consultant
N/A
CERTIFICATE
I certify that all information provided is true and correct as of the date of this statement,that I have not knowingly
withheld disclosure of any information requested;and that supplemental statements will be promptly submitted to
the City of Corpus Christi, Texas as changes occur.
Drew Durrett /.Certifying Person:
Title: Manager
(Print Name)
Signature of Certifying Person: ��✓___ Date: c_' L-'
KIDEVELOPMENTSVCSISHAREDILANO DEVELOPMENTIAPPLICATION FORMSIREZONINGIDISCLOSURE OF INTERESTS STATEMENT_5 12.2015 DOC
Nueces County
Kara Sands
Nueces County Clerk
*VG-50-2022-2022012090*
Instrument Number: 2022012090
Official Public Records
AGREEMENT
Recorded On: March 11, 2022 03:40 PM Number of Pages: 19
" Examined and Charged as Follows: "
Total Recording: $89.00
........‘‘N\ STATE OF TEXAS
00Y Co0;1111 Nueces County
* 4. *i I hereby certify that this Instrument was filed in the File Number sequence on the date/time
i o �'a „,t
printed hereon, and was duly recorded in the Official Records of Nueces County,Texas
i��,' Kara Sands
1'yoF NUtg,14 ' Nueces County Clerk
Nueces County, TX
***********THIS PAGE IS PART OF THE INSTRUMENT***********
Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY
because of color or race is invalid and unenforceable under federal law.
File Information: Record and Return To:
Document Number: 2022012090 DEVELOPMENT SERVICES CITY OF CC
Receipt Number: 20220311000207 2406 LEOPARD STREET
Recorded Date/Time: March 11, 2022 03:40 PM
User: Lisa C CORPUS CHRISTI TX 78408
Station: CLERK03