HomeMy WebLinkAboutC2023-116 - 6/26/2023 - 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 Dorsal Development, LLC
("Developer"), in order to defer the completion of certain required public improvements
prior to recording the final plat of Bronx Acres Lots 3-6, Section 21 Flour Bluff and
Encinal Farm and Garden (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 service 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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SCANNED
1. 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. 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, and City further agrees to allow the Developer to delay
construction of the Deferred Improvements per the terms of this agreement.
3. As a condition of this Agreement, the Developer agrees to deposit with the City
$377,241.23, 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.
4. Deferred Improvements are to be completed in conformance with City's engineering
Standards within 12 months from the execution of this Agreement.
5. If a letter of credit is utilized as financial security under this Agreement, the
content of the irrevocable letter of credit must be pre-approved by the City's
Director of Financial Services ("Finance Director") and City Attorney, be issued
by a banking institution having a local branch office within the State of Texas
(Corpus Christi location preferred), be valid for a period of twelve (12) months
from the date of issuance or longer, and require, as sole documentation for
payment, a 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 paragraph below regarding
renewal], and accompanied by a properly drawn draft not to exceed the face
value of the letter of credit.
6. If the form of financial security is a letter of credit, the Developer must ensure that
the letter of credit is kept valid at all times. The letter of credit must be renewed
by the Developer before expiration, and 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 timely renewal is not received by the City, or cash in lieu thereof is
not deposited as financial security with the City, the City may, after ten (10) days
prior written notice to the Developer, call (redeem) the letter of credit for failure to
Page 2 of 8
timely renew. If the letter of credit is called for failure to timely renew, the funds
will be held in an account as if cash had been posted by the Developer 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 type of financial security posted by the
Developer pursuant to this Agreement.
7. In accordance with the provisions set out in Section 3.30.1 of the UDC, as it may
be amended, the City may accept other types of financial guarantees for
deferment agreements subject to the approval of the Finance Director and the
City Attorney. In the event the Developer desires to use and the City agrees to
accept an alternate form of financial guarantee other than a cash deposit or an
irrevocable letter of credit as security for this Agreement, such other security-
specific financial guarantee's terms and conditions pertaining to issuance,
redemption, restrictions, limitations, and use as made be made subject to this
Agreement shall be as further set out in an addendum to this Agreement, which
addendum is to be attached to this Agreement and the content incorporated by
reference into this Agreement as "Addendum A." The parties agree that, should
there be, by the attachment and incorporation of Addendum A to this Agreement,
any conflict in the terms, conditions, or requirements stated in this Agreement
(including its exhibits) and Addendum A, the provisions of Addendum A take
precedence over conflicting terms in the Agreement and its exhibits. All other
provisions in the Agreement (and its exhibits) not in conflict with Addendum A
control otherwise by agreement of the parties.
8. Unless otherwise stated in this Agreement, any notice required or permitted to be
given by either party shall be in writing and must be given by personal delivery,
fax, or certified mail, return receipt requested, postage prepaid, 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. Any party may, by
notice to the other in accordance with the provisions of this paragraph, specify a
different address or addressee for notice purposes.
9. Time is of the essence in the performance of this Agreement.
10. 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.
11. 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 paragraph above.
12. Upon completion of the Deferred Improvements by the Developer as verified by
Page 3 of 8
the Assistant City Manager and Director of Development Services and within the
time period stated in paragraph 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 sixty (60) days of the completion of the
construction of the Deferred Improvements and settlement of the actual
construction costs, or within sixty (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. 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. If the Developer has not begun construction of the Deferred Improvements at
least thirty (30) days prior to the completion date stated in paragraph 4 of this
Agreement, the Developer agrees that the City, after notice in writing to the
Developer, may 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, the Developer shall reimburse the City for any additional costs
related to completion of the Deferred Improvements within thirty (30) days after
the City completes the required Deferred Improvements and invoices the
Developer if the funds on account prove inadequate for the City to complete the
Deferred Improvements.
15. 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.
16. The City and Developer agree that, if the Developer formally vacates the current
Page 4 of 8
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. If Developer defaults in any of its covenants or obligations under this Agreement
[excluding failure to timely renew a letter of credit, post additional security, or as
may be made applicable by Addendum A, 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 such address is known by the City] by certified
mail, return receipt requested, advising the Developer of the default and giving
the Developer thirty (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 sixty (60) days of the
completion of construction of the Deferred Improvements and settlement of the
actual construction costs.
18. 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.
19. 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.
20. 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. The City, at the Developer's expense, shall file
for record this Agreement in the official public records of Nueces County.
21. With the exception of Addendum A made applicable pursuant to paragraph 7, 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.
22. 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
Page 5 of 8
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.
23. 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.
24. The Developer shall comply with all federal, State, and local laws, regulations,
and rules applicable to performance of this Agreement.
25. 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.
26. 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.
27. 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.
28. This Agreement 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
Addendum A — if applicable pursuant to paragraph 7.
Page 6 of 8
EXECUTED IN ONE ORIGINAL this l�(9 day of z5
201'
CITY OF CORPUS CHRISTI
P. O. Box 9277
Corpus Christi, TX 78469-9277
(361) 826-3240 Office
(361) 82. - 8 Fax
A 111
s W diA41
Al 'aym+nd I, AIA, CBO,
Director of D velopment Services
THE STATE OF TEXAS §
§
COUNTY OF NUECES §
This instrument was acknowledged before me on LJ N_ 2(1)* , 2023, by
Al Raymond III, AIA, CBO, Director of Development Service for the City of Corpus
Christi, Texas.
CQ .i/il n os
No Public's Signature
Approved to Legal Form:
I
61— `1pAYP<: JOANN SALINAStW-7 �/�, Z G—Z; ...„.„.1c.,:„°°�' =Notary Public,State of Texas
�(/[� Comm.Expires 03-02-2026
Buck Brice Date
%',moo Notary ID 133621810
Assistant City Attorney
Page 7 of 8
DEVELOPER
Dorsal Development, LLC
P.O. Box 8155
Corpus Christi, Nueces County, Texas
78468
Ata O. Azali Date:
STATE OF
COUNTY OF Ou §
This instrument was acknowledged before me orOf%) 2023, by Ata O . Azali ,
Owners, Dorsal Development, LLC, on behalf of said corporation.
OtaniA,mA
CORTNEY GONZALEZ
_°4.W� Notary ID#130877318 I • a 'Pu. "c's Sig : ure
4 4 46,, My Commission Expires
December 14,2024
Page 8 of 8
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Exhibit 3 ENGINEER OPINION OF PROBABLE CONSTRUCTION COSTS
ESTIMATE#: 01
PROJECT: BRONX ACRES PUBLIC IMPROVEMENTS
ESTIMATE DATE: March 23,2023
CITY: CORPUS CHRSITI PUBLIC IMPROVEMENT OWNERSHIP
CONTACT: BRIA WHITMIRE,PE WASTEWATER: CITY OF CORPUS CHRISTI
PROJECT#: N/A STORM WATER: CITY OF CORPUS CHRISTI
WATER: CITY OF CORPUS CHRISTI
OWNER: DORSAL DEVELOPMENT GAS: CITY OF CORPUS CHRISTI
CONTACT:ALEX AZALI STREET: CITY OF CORPUS CHRISTI
PROJECT#: N/A
ENGINEER: MUNOZ ENGINEERING,LLC (TBPLES F-12240)
CONTACT:THOMAS TIFFIN,PE
PROJECT#: 220052
PUBLIC IMPROVEMENTS
ITEM NO. DESCRIPTION UNIT ESTIMATED ESTIMATED UNIT PRICE ESTIMATED TOTAL COST
QUANTITY
1 GENERAL-MOBILIZATION(5%MAX) LS 1.00 $ 15,761.42 $ 15,761.42
2 GENERAL-INSURANCE AND BONDS IS 1.00 $ 9,456.85 $ 9,456.85
3 GENERAL-PERMITS IS 1.00 $ 2,500.00 $ 2,500.00
4 SITE-DEMOLITION AND CLEARING AC 1.15 $ 1,500.00 $ 1,725.00
5 SITE-GRADING LS 1.00 $ 6,500.00 $ 6,500.00
6 TEMPORARY TRAFFIC CONTROL-PLAN AND DEVICES LS 1.00 $ 1,500.00 $ 1,500.00
7 SWPP-CONSTRUCTION ENTRANCE/EXIT LS 1.00 $ 1,500.00 $ 1,500.00
8 SWPP -CURB INLET PROTECTION BARRIER LS 2.00 $ 350.00 $ 700.00
9 SWPP-REINFORCED FILTER FABRIC FENCE LF 1,774.00 $ 1.70 $ 3,015.80
10 DEMO-STOP SIGN EA 1.00 $ 250.00 $ 250.00
11 DEMO-END OF ROAD SIGN LS 1.00 $ 250.00 $ 250.00
12 REMOVE-EXISTING STRIPPING LS 1.00 $ 6,500.00 $ 6,500.00
13 REMOVE-EXISTING ARROW EA 2.00 $ 150.00 $ 300.00
14 PAVE-FLEX PAVEMENT-SUBGRADE-UME STABILIZED-8-INCH SY 1,340.00 $ 8.00 $ 10,720.00
I PAVE-FLEX PAVEMENT-BASE-TxDOT TYPE A,GRADE 1-2-11-INCH SY 1,340.00 $ 35.00 $ 46,900.00
I•, PAVE-FLEX PAVEMENT-HMAC-4-INCH SY 1,230.00 $ 36.00 $ 44,280.00
17 PAVE-PAVEMENT REPAIR-HMAC SY 120.00 $ 72.00 $ 8,640.00
18 PAVE-RIDGID DRIVEWAY-LIME STABELIZED-6-INCH SY 220.00 $ 6.00 $ 1,320.00
19 PAVE-RIDGID DRIVEWAY-BASE-TxDOT TYPE A,GRADE 1-2-6-INCH SY 220.00 $ 24.00 $ 5,280.00
20 PAVE-RIDGID DRIVEWAY-CONCRETE-7-INCH SY 200.00 $ 62.00 $ 12,400.00
21 PAVE-CONCRETE LAYDOWN CURB LF 142.00 $ 20.00 $ 2,840.00
22 PAVE-CURB AND GUTTER LF 455.00 $ 20.00 $ 9,100.00
23 PAVE-SIDEWALK-CURB RAMP(ADA) EA 4.00 $ 925.00 $ 3,700.00
24 PAVE-SIDEWALK-5'WIDE SF 670.00 $ 7.50 $ 5,025.00
25 PAVE-SIDEWALK-12'WIDE SF 14,160.00 $ 7.50 $ 106,200.00
26 WASTEWATER UTILITY-SDR 26 PVC-12-INCH LF 68.00 $ 115.00 $ 7,820.00
27 WASTEWATER UTILITY-TRENCH SAFETY LF 68.00 $ 9.75 $ 663.00
28 WASTEWATER UTILITY-END PLUG-12 INCH EA 1.00 $ 850.00 $ 850.00
29 WASTEWATER UTILITY-MANHOLE-4-FT DIA LF 2.00 $ 6,600.00 $ 13,200.00
30 WASTEWATER UTILITY-TIE TO EXISTING EA 1.00 $ 1,200.00 $ 1,200.00
31 WATER UTILITY-C-900 PVC-6-INCH LF 48.00 $ 35.00 $ 1,680.00
32 WATER UTILITY-CAP-6-INCH EA 1.00 $ 450.00 $ 450.00
33 WATER UTILITY-VALVE-6-INCH EA 1.00 $ 985.00 $ 985.00
34 TRENCH SAFETY FOR WATER LINES IF 48.00 $ 9.75 $ 468.00
35 WATER UTILITY-TIE TO EXISTING EA 1.00 $ 3,850.00 $ 3,850.00
36 WATER UTILITY-PAVEMENT REPAIR(APPROXIMATE) SF 230.00 $ 23.55 $ 5,416.50
Total Estimated Construction Costs: $ 342,946.56
Deferment Amount Total for 110% of Construction Cost: $ 377,241.22
M.Wljen34L•DorsaOMJMM52.20062 rho AIw*try A, E3.ENGMEERIIVOI C0/1005 COSI EST.>,E'.220052-Bronx Acres1=0EOVCC 20210323 Page 1 of 1
Exhibit 4
CITY OF CORPUS CHRISTI
DISCLOSURE OF INTERESTS
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 answered. If the question is not applicable,answer with"NA'.
FIRST NAME: Dorsal Development
STREET: PO Box 8155 CITY: CORPUS CHRISTI Zip: 78468
FIRM IS: .61. Corporation o2. Partnership o3. Sole Owner o4. Association o5. Other
DISCLOSURE QUESTIONS
If additional space is necessary,please use the reverse side of this page or attach separate sheet.
1. Stale 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. Slate 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 35 or more of the
ownership in the above named"firm'.
Name Consultant
N/A
CERTIFICATE
t certify that all information provided is true and correct as of,the-date of this statement;That I have noticnowinglya&'ithbeid:
disclosure of any information requested; and that supplemental statements will be promptly submitted to:lhe'iCity of
Corpus Christi,Texas as changes occur C Qu._, ri- it
Certifying Person: Ata Azali Title President
(Type or Print) 116 Signature of Certifying Person: Date' ti/ '1 40 Z3
FPA-02
�p��OF 7,.
h �� Kara Sands
0. t'-' Cu
/\ - Nueces County Clerk
CGS 'G 901 Leopard St #201
�� OF NJ� Corpus Christi, TX 78401
Main: (361)888-0580
Receipt: 20230626000024
Date: 06/26/2023
Time: 09:40AM
By: Brenda R
Station: CLERK09
Status: ORIGINAL COPY
Balance After Finalization: $5,855.00
Seq Item Document Description Number Number Of Amount Serial Number
1 Official Public Records AGRMT 2023023097 30 $133.00
Order Total (1) $133.00
Seq Payment Method Transaction Id Comment Total
1 Company Account 361-826-3568 $133.00
Total Payments (1) $133.00
Change Due $0.00
DEVELOPMENT SERVICES CITY OF CC
2406 LEOPARD STREET
CORPUS CHRISTI, TX 78408
For more information about the County Clerk's office and to search property
records online, please visit htto://www.nuecesco.com/county-services/county-clerk
1
1 of 1
i
iW
Nueces County
Kara Sands
Nueces County Clerk
'VG-50-2023-2023023097'
Instrument Number: 2023023097
Official Public Records
AGREEMENT
Recorded On: June 26, 2023 09:40 AM Number of Pages: 30
" Examined and Charged as Follows: "
Total Recording: $133.00
_xxxxxxxx` STATE OF TEXAS
�oNNTY CpU9T4� Nueces County
*s I hereby certify that this Instrument was filed in the File Number sequence on the date/time
%o �' „, printed hereon, and was duly recorded in the Official Records of Nueces County, Texas
�► NU�c�S"• Kara Sands
Nueces County Clerk G
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: 2023023097 DEVELOPMENT SERVICES CITY OF CC
Receipt Number: 20230626000024 2406 LEOPARD STREET
Recorded Date/Time: June 26, 2023 09:40 AM
User: Brenda R CORPUS CHRISTI TX 78408
Station: CLERK09