HomeMy WebLinkAbout18329 ORD - 07/10/1984AN ORDINANCE
AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
EXECUTE AN AGREEMENT WITH 3RD COAST INVESTMENTS,
INC. FOR PUBLIC/PRIVATE PARTNERSHIP KNOWN AS
FURMAN PLAZA, INCLUDING THE REHABILITATION OF THE
FURMAN BUILDING AND THE CONSTRUCTION OF A PARKING
GARAGE CONTAINING A MINIMUM OF 305 SPACES;
APPROPRIATING A TOTAL OF $600,000 FROM THE 5TH AND
7TH YEARS OF THE COMMUNITY DEVELOPMENT BLOCK GRANT
PROGRAM; AND DECLARING AN EMERGENCY.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
SECTION 1. That the City Manager or his designee be
authorized to execute an agreement with 3rd Coast Investments, Inc.
for public/private partnership known as Furman Plaza, including the
rehabilitation of the Furman Building and the construction of a
parking garage containing a minimum of 305 spaces, a copy of which
agreement is attached hereto and made a part hereof marked Exhibit
flA
SECTION 2. That there is hereby appropriated $600,000 from
the 5th and 7th years of the Community Development Block Grant
Program.
SECTION 3. That upon written request of the Mayor or five
Council members, copy attached, to find and declare an emergency due
to the need for the efficient administration of City affairs by
executing the abovementioned agreement at the earliest practicable
date, such finding of an emergency is made and declared requiring
suspension of the Charter rule as to consideration and voting upon
ordinances or resolutions at three regular meetings so that this
ordinacne is passed and shall take effect upon first reading as an
emergency measure this the 10th day of July, 1984.
ATTEST:
ei t3
ecretary
APPROVED:DAY DAY OF JULY, 1984
J. BRUCE AYCOCK, CITY ATTORNEY
MAY
THE CITY OF CORPUS CHRISTI,
TEXAS
18329
MICROFILMED
SEP 2 81984
STATE OF TEXAS §
COUNTY OF NUECES §
AGREEMENT
KNOW ALL BE THESE PRESENTS:
This AGREEMENT, made and entered into by the CITY OF CORPUS
CHRISTI, TEXAS (hereinafter called "the City"), and 3RD COAST
INVESTMENTS, INC., a Texas Corporation, or its Assignee, (hereinafter
called "Developer");
WITNESSETH:
WHEREAS, a public/private partnership between the City and
Developer has been proposed for the development and operation of a
major parking facility in the eastern quadrant of downtown Corpus
Christi to be constructed in conjunction with Developer's renovation
of the Furman Building (the proposed Furman Plaza and Public Parking
Garage being hereinafter collectively called "the Project"); and
WHEREAS, it is proposed that the parking garage project
(hereinafter called "Parking Project"), estimated to cost
$1,380,000.00 exclusive of land cost ($1,580,000.00 including land)
and the Furman Building renovation project (hereinafter called "Furman
Plaza Project"), estimated to cost $1,500,000.00 exclusive of
acquisition cost ($2,070,000.00 including acquisition cost) be funded
in part by previously allocated Community Development Block Grant
Funds (CDBG Funds) and financed in part through the use of industrial
revenue bonds; and
WHEREAS, the Parking Project will make available to the
general public a minimum of 305 parking spaces ground level and above,
with the City having certain dedicated rights in and to 150 of such
parking spaces, and the Furman Plaza Project will rehabilitate a
building which, although designated a "preservation target" by the
City's Landmark Commission, is currently before the City's Building
Standards Board as a substandard, blighting influence on the downtown
area; and
WHEREAS, the City finds that the Project will provide needed
parking and enhance economic development of the downtown area in
accordance with previously established criteria and priorities set by
the City Council relating to economic and business development,
utilization of CDBG Funds, revitalization of the downtown area, and
removal of blighted areas and substandard structures; and
WHEREAS, the City further finds that the Project will
benefit the City and its citizens in the following respects:
1. A substandard building and two essentially vacant lots
will be rehabilitated and developed, thereby significantly increasing
the economic development activity in the heart of the downtown area;
2. Parking well in excess of zoning requirements for the
rehabilitated Furman Building will be provided, making a minimum of
305 parking spaces available to the public, of which 150 will be
dedicated to the City;
3. The revenues to be received by the City from the Parking
Project as hereinafter provided will come back into the CDBG Program
as Program income available for other eligible CDBG Program
activities, and, in addition, the Furman Plaza Project, as well as the
Parking Project, will benefit the City in terms of sales and property
taxes resulting from the Project, with the increased ad valorem taxes
significantly benefitting the Corpus Christi Reinvestment Zone No.
One;
4. The increased parking capacity provided by the Parking
Project may provide added impetus for development of several other
buildings and properties that have been purchased by other investment
groups in the immediate area of the Furman Building;
and
WHEREAS, the City further finds that the use of industrial
revenue bonds on the Project is a very appropriate use of industrial
revenue bonds because the downtown area is a targeted redevelopment
zone that falls within the Corpus Christi Reinvestment Zone No. One
and the Central Improvement District, and because the Project is
essentially an innovative "demonstration" project in an area of
downtown Corpus Christi for which there is neither experience nor
"comparables" upon which to predict the success or failure of
the Project and therefore would be only marginally feasible if
conventional lending rates were required; and
WHEREAS, the Developer is able and desires to undertake the
Project, and the City desires and is willing to provide its
assistance, all as more fully provided herein:
NOW, THEREFORE, in consideration of the premises, and in
further consideration of the covenants, terms and undertakings herein
expressed, the City and Developer agree as follows:
1. Upon the initiation of construction of the Parking
Project, the City shall transfer to the account of Developer
$600,000.00 of CDBG Funds, such Funds to be held, together with all
other construction financing for the Parking Project and the Furman
Plaza Project, by a financial intermediary as trustee in an
interest-bearing account, the interest from which shall become part of
the Developer's Project account.
2. The Developer and/or contractor shall provide adequate
assurance of completion and protection from liens by the furnishing of
a performance and payment bond or letter of credit, or by providing
such other forms of assurance and protection as the City and Developer
may agree upon.
3. The Developer shall dedicate to the City for the benefit
of the public by appropriate easement or other instrument of
dedication the irrevocable right and privilege to use and occupy at
current rates 150 parking spaces in the Parking Project which shall be
considered as part of the City's inventory of parking spaces from
which the City shall receive revenue as hereinafter provided, all for
a period of thirty (30) years.
4. The Developer shall, in addition to the parking spaces
referred to in 3 above, provide public parking spaces, regardless of
zoning requirements, in sufficient number to meet the following
criteria based on a space utilization of the Furman Plaza Project of
thirty percent (30%) restaurants, clubs and taverns and seventy
percent (70%) retail and office, to -wit: restaurants, clubs and
taverns - one space per 100 square feet; retail or office - one space
per 200 square feet.
5(a) The dedication agreement referred to in 3 above shall
provide that the Developer shall operate, maintain and provide
security during normal business hours for the entire Parking Project
during the term of such agreement and during such time remit to the
City on a quarterly basis a portion of gross revenues from the Parking
Project operation based on the ratio by which the 150 spaces dedicated
to the City bears to the total number of parking spaces in the Parking
Project as follows:
(i) During the first 20 years, the City shall receive
100% of the product derived from multiplying a fraction whose
numerator is 150 and whose denominator is the total parking spaces in
the parking garage, times gross revenues from the Project. Thus,
during the first 20 years of the Project, the City's revenue from the
Project shall be based on the following formula:
150 x gross revenues x 100% = City's revenue
total parking spaces
(ii) Commencing with the 21st year of the Project and
running through the 29th year of the Project, the City's percentage of
the product derived from multiplying the fraction described in (i)
above times gross revenues from the Project shall reduce 10% each year
so that the City shall receive 90% of such product in year 21, 80% of
such product in year 22, 70% of such product in year 23, and so on so
that, for example, in the 24th and 29th years the City's revenue from
the Project would be based on the following formula:
year 24:
150 x gross revenues x 60% = City's revenue
total parking spaces
and in year 29:
150 x gross revenues x 10% = City's revenue
total parking spaces
(iii) Commencing with the 30th year and thereafter,
the City shall receive none of the parking revenues from the Project
nor have any interest whatsoever therein, except that such parking
shall remain open to the public, and in recognition thereof shall
execute an appropriate instrument in recordable form evidencing the
termination of such dedication agreement.
(b) Rates charged by Developer to users of the parking
spaces to be developed hereunder shall be based on and comparable to
rates charged users of parking spaces in other comparable, unmetered
parking garages located in the central business district. For the
purposes of this agreement, the boundaries of the central business
district shall be co -extensive with the boundaries of the Corpus
Christi Central Improvement District.
(c) As used in subparagraph (a) above, the phrase "during
normal business hours" contemplates a minimum of 40 hours per week
during the usual and customary business hours on Mondays through
Fridays, but nothing herein shall preclude Developer from making the
parking garage open and available for public parking during other than
normal business hours over and above the required minimum 40 hours per
week. Developer agrees to cooperate with the City by operating the
parking garage for such additional hours during which major events in
the downtown area make reasonable parking demand evident.
(d) If requested by the City, the Developer agrees that
parking spaces may be made available for reserved parking for the
City's use for its employees and in such event the numerator of the
fraction used to calculate the City's share of revenue from the
Parking Project under subparagraph (a) above shall be reduced by the
number of parking spaces so set aside to the City under this
subparagraph (d).
(e) The dedication agreement shall provide that these
provisions shall be covenants running with the land, binding on
Developer's successors and assigns.
6. The City shall cause the Corpus Christi Industrial
Development Corporation to issue industrial revenue bonds in the
amount of $2,500,000.00, plus the ordinary expenses of such issue
under its normal terms and conditions for the Project subject to all
applicable state and federal statutes and shall issue its written
commitment therefor within thirty (30) days from the date of this
Agreement. The City shall provide staff assistance to Developer in
connection with the preparation and marketing of the bond issue.
7. The Developer shall pay all normal and customary permit
fees and taxes for the Project when due.
8. The Developer shall commence construction of the Parking
Project within one hundred twenty (120) days from the date of this
Agreement and complete the same within sixteen (16) months regardless
of whether industrial revenue bonds shall have theretofore been
issued, and to secure this obligation, Developer shall deliver to the
City an irrevocable standby letter of credit on a national bank
acceptable to the City in the amount of $10,000.00 drawn in favor of
the City assuring Developer's performance under this paragraph and
conditioned that in the event of Developer's failure to comply with
the times of performance provided in this paragraph, then the City may
draw on said letter of credit for the full amount as liquidated
damages. Developer and the City agree that the actual damages which
might be sustained by the City by reason of the failure of Developer
to comply with the time constraints established in this paragraph 8
are uncertain and would be difficult to ascertain and that said sum of
$10,000.00 would be as to each of them reasonable as liquidated
damages. Should Developer fail to substantially complete the parking
garage within 24 months from the date of this Agreement, then the
initial $600,000.00 payment by the City shall be refunded to the City,
plus interest calculated at 10% per annum.
9. Developer shall from time to time duly pay and
discharge, or cause to be discharged or paid, when the same become
due, all taxes, assessments, and other governmental charges which are
lawfully imposed upon the Project and which, if unpaid, may by law
become a lien or encumbrance upon the Project and thereby impede or
otherwise adversely affect the holding of the Project for its intended
uses.
10. Developer shall at all times keep the Project and
related premises in good and safe condition and repair in the
occupancy, maintenance, and operation thereof. Developer shall comply
with all laws, ordinances, codes and regulations applicable thereto.
Developer shall not permit, commit, or suffer any waste or impairment
of the Project or any part thereof.
11. Developer shall submit to the City and the Secretary of
Housing and Urban Development ("HUD") such data, reports, records, and
documents relating to the operation of the Parking Project as the City
and HUD request in order to permit the City and HUD to determine
whether the operation of the Parking Project is in accordance with
this Agreement and the rules and regulations of HUD.
12. Developer agrees to insure and keep insured the Parking
Project against loss or damage by fire, windstorm, and any other
hazard or hazards as may be reasonably required from time to time by
the City during the term of the dedication agreement referred to in
paragraph 3 above to the extent of the full insurable value of said
improvements, in such form and with such insurance company or
companies as may be approved by the City, and to deliver to the City
the policies of such insurance, having attached to said policies such
indemnity clause as the City shall direct. Developer agrees to
deliver renewals of such policies to the City at least ten (10) days
before any such insurance policies shall expire. Any proceeds which
the City may receive under any such policy or policies may be applied
by the City, at its option, to reduce the portion of CDBG Funds, if
any, not yet recovered from its share of revenues from the Parking
Project in such manner as the City may elect, or the City will permit
Developer to use said proceeds to repair or replace all improvements
damaged or destroyed and covered by said policy at the request of
Developer.
13. Developer agrees to indemnify and forever save harmless
the City, its officers, agents, and employees, from any and all
lawsuits, claims, demands, liabilities, losses and expenses, including
court costs, attorneys' fees, and fees and expenses for expert
consultants, for or on account of any injury to any person, or death
at any time resulting from such injury, or any damage to property,
which may arise or which may be alleged to have arisen out of or in
connection with developer's activities under this Agreement. With
respect to the Parking Project, Developer agrees to secure and
maintain at its own expense throughout the term of the dedication
agreement referred to in paragraph 3 a policy or policies of
comprehensive general liability insurance naming the City as an
additional insured with minimum limits of $500,000.00 for bodily
injury or death per individual, $500,000.00 for bodily injuries or
death per occurrence, and $100,000.00 for property damage. Said
insurance policies shall also include coverage within the above limits
for any personal injuries which may be alleged other than bodily
injury. On each policy the City shall be named as an additional
insured, and certificates of insurance for all such policies shall be
furnished to the City and maintained throughout the term of this
Agreement. Each certificate must provide for thirty (30) days notice
by the insurer to the City prior to any cancellation of such policies.
Developer also agrees to maintain adequate workers compensation
insurance as required by law.
14. Developer agrees that it will record all financial
transactions according to generally accepted accounting procedures and
that it will provide any and all information pertinent to its
operations and revenues from the Parking Project as the City may from
time to time request for audit purposes.
15. Developer further agrees to comply with the following
federal requirements and regulations:
(a) to conduct its activities with regard to this Agreement
in accordance with OMB Circular A-102, A-87, A-122, and HUD's
Applicability to Community Development Block Grants with reference to
Attachments B, C, and 0 thereof;
(b) to comply with paragraph 570.506 of the Federal Register
with reference to program income;
(c) to comply with all applicable Equal Opportunity
regulations and specifically, Executive Order 11246, as amended, and
Section 3 of the Housing and Urban Development Act of 1965, as
amended;
(d) to comply with any other rule or regulation promulgated
by HUD during the term of this Agreement which is directly related to
Community Development Block Grant funded activities, when so informed
in writing by the City;
(e) to comply with Section 109 of the Housing and Community
Development Act of 1974, and the regulations issued pursuant thereto
(24 CFR 570.601), which provide that no person in the United States
shall, on the grounds of race, color, national origin, or sex, be
excluded from participation in, be denied the benefits of, or be
subjected to discrimination under, any programs or activity funded in
whole or in part with funds provided by the Community Development
Block Grant Program;
(f) to not discriminate against any applicant for
employment because of race, color, religion, sex or national origin
and take affirmative action to ensure that applicants are employed,
and that employees are treated during employment without regard to
their race, color, religion, sex or national origin. (Such action
shall include, but not be limited to, the following: employment,
upgrading, demotion, transfer, recruitment or recruitment advertising,
lay-off, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship.);
(g) to post in conspicuous places, available to employees
and applicants for employment, notices setting forth the provisions of
the aforementioned nondiscrimination clause, and in all solicitations
or advertisements for employees placed by or on behalf of Developer,
state that all qualified applicants will receive consideration for
employment without regard to race, color, religion, sex or national
origin;
(h) to agree that pursuant to the regulations promulgated
pursuant to Section 3 of the Housing and Urban Development Act of
1965, as amended, 12 U.S.C. 1701u, the following assurances of
compliance entitled "Training, Employment, and Contracting
Opportunities for Businesses and Lower Income Persons," shall be
included in each Section 3 covered contract or agreement resulting
from this Agreement:
(i) to render of the greatest extent feasible
opportunities for training and employment to lower income residents of
the Project area and award contracts for work in connection with the
Project to business concerns which are located in or owned in
substantial part by persona residing in the area of the Project;
(ii) to carry out the provisions of said Section 3 and
the regulations issued pursuant thereto by the Secretary set forth in
24 CFR Part 135 (published in 38 Federal Register 29220, dated October
23, 1973), and all applicable rules and orders relative to this
Agreement which include, but are not limited to, development and
implementation of an affirmative action plan for utilizing business
concerns located within or owned in substantial part by person
residing in the area of the Project, the making of a good faith
effort, as defined by the regulations, to provide training,
employment, and business opportunities required by Section 3, and
incorporation of the "Section 3 clause" specified by Section 135.20(b)
of the regulations in all contracts for work in connection with the
Project. Developer certifies and agrees that it is under no
contractual or other disability which would prevent it from complying
with these requirements;
(iii) to comply with the provisions of Section 3, the
regulations set forth in 24 CFR Part 135, and all applicable rules and
regulations set forth and orders of the Secretary issued thereunder
prior to approval of this Agreement, which shall be a condition of the
federal financial assistance provided to the Project, binding upon
Developer, its contractors and subcontractors, its successors, and
assigns to the sanctions specified by this Agreement, and to such
sanctions as are specified by 24 CFR Section 135.135.
16. The Developer and the City further agree to cooperate
fully in connection with this public/private partnership and to take
such steps and actions and provide such assistance to each other as
may be reasonable and appropriate under the circumstances; provided,
however, nothing contained in this paragraph 16 shall ever be
construed as obligating the City to provide any direct financial
assistance not otherwise provided for in or contemplated by this
proposal or formally approved by subsequent Council action.
17. It is understood by both parties hereto that 3rd Coast
Investments, Inc., contemplates the formation of a developer entity
for the Project, to be called Furman Plaza, Ltd., a Texas Limited
Partnership, in which 3rd Coast Investments, Inc., will be the
Managing General Partner, and it is agreed that this Agreement may be
assigned by 3rd Coast Investments, Inc., to Furman Plaza, Ltd., or
such other developer entity formed by 3rd Coast Developers, Inc.,
should the name Furman Plaza, Ltd., not be available. It is further
agreed that as used in this Agreement the term "Developer" shall apply
to 3rd Coast Investments, Inc., or such other developer entity in
which 3rd Coast Investments, Inc., may be Managing General Partner and
to whom this Agreement may be assigned.
18. Notwithstanding any other provisions hereof, should
Developer breach any section or provision of this Agreement, the
measure of damages recoverable by the City on account of such breach
shall be limited to the $600,000.00 of CDBG Funds advanced hereunder
and the $10,000.00 specified under paragraph 8 above. The City
agrees, however, that prior to declaring a breach of any section or
provision of this Agreement, it shall give written notice to
Developer, which written notice shall include: (a) a statement of the
nature of the breach, and (b) the action required by Developer to cure
such breach and the time period within which such required action must
be taken by Developer. Developer shall have a period of not less than
thirty (30) days after receipt of such written notice within which to
cure any breach.
19. All notices given pursuant to the provisions of this
Agreement shall be made in writing and delivered in person or mailed,
postage prepaid, addressed to the applicable party as follows:
FOR CITY:
Ezequiel P. Elizondo
Department of Housing and
Community Development
City of Corpus Christi
302 S. Shoreline Drive
P. 0. Box 9277
Corpus Christi, Texas 78469
FOR DEVELOPER: Armando J. DeLeon
3rd Coast Investments, Inc.
P. 0. Box 18302
Corpus Christi, Texas 78418
20. If any provision of this Agreement is held invalid, the
remainder of this Agreement shall not be affected thereby if such
remainder would then continue to conform to the requirements and terms
of applicable law.
EXECUTED in duplicate originals this day of
1984, both of equal force and effect.
ATTEST: CITY OF CORPUS CHRISTI
By By
Bill G. Read Edward A. Martin
City Secretary City Manager
APPROVED
day of , 1984
J. BRUCE AYCOCK, CITY ATTORNEY
By By
Assistant City Attorney W. Thomas Utter
Assistant City Manager
3RD COAST INVESTMENT, INC.
By
Its
- ,CITY OF CORPUS CHRISTI, TEXAS
CERPIFICATION OF FUNDS
' (City Charter Article IV Section 21)
July 10, 1984
I certify to the City Council that $ 600,000 , the amount required for
the contract, agreement, obligation or expenditures oontenplated in the above
and foregoing ordinance is in the Treasury of the City of Corpus Christi to the
credit of:
Fund NO. and Name 162 Federal/State Grant
162/152/807.03/502 ($400,000) 5th Year CDBG
Project No. 162/152/807.05/502 ($200,000) 7th Year CDBG
Project Nave Downtown Parking Garage
frau which it is proposed to be drawn, and such money is not appropriated for any
other purpose. -
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Do mance
FIN 2-55
Revised 7/31/69
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AGREEMENT
STATE OF TEXAS §
KNOW ALL BY THESE PRESENTS:
COUNTY OF NUECES §
This AGREEMENT, made and entered into by the CITY OF CORPUS
CHRISTI, TEXAS (hereinafter called "the City"), and 3RD COAST INVESTMENTS,
INC., a Texas Corporation, or its Assignee, (hereinafter called
"Developer");
W ITNESSET H:
WHEREAS, a public/private partnership between the City and
Developer has been proposed for the development and operation of a major
parking facility in the eastern quadrant of downtown Corpus Christi to be
constructed in conjunction with Developer's renovation of the Furman
Building (the proposed Furman Plaza and Public Parking Garage being
hereinafter collectively called "the Project"); and
WHEREAS, it is proposed that the parking garage project
(hereinafter called "Parking Project"), estimated to cost $1,380,000.00 ex-
clusive of land cost ($1,580,000.00 including land) and the Furman Building
renovation project (hereinafter called "Furman Plaza Project"), estimated to
cost $1,500,000.00 exclusive of acquisition cost ($2,070,000.00 including
acquisition cost) be funded in part by previously allocated Community
Development Block Grant Funds (CDBG Funds) and financed in part through the
use of industrial revenue bonds; and
WHEREAS, the Parking Project will make available to the general
public a mimimum of 305 parking spaces ground level and above, with the City
having certain dedicated rights in and to 150 of such parking spaces, and
the Furman Plaza Project will rehabilitate a building which, although desig-
nated a "preservation target" by the City's Landmark Commission, is current-
ly before the City's Building Standards Board as a substandard, blighting
influence on the downtown area; and
WHEREAS, the City finds that the Project will provide needed park-
ing and enhance economic development of the downtown area in accordance with
previously established criteria and priorities set by the City Council re-
lating to economic and business development, utilization of CDBG Funds,
revitalization of the downtown area, and removal of blighted areas and
substandard structures; and
WHEREAS, the City further finds that the Project will benefit the
City and its citizens in the following respects:
1. A substandard building and two essentially vacant lots will be
rehabilitated and developed, thereby significantly increasing the economic
development activity in the heart of the downtown area;
2. Parking well in excess of zoning requirements for the
rehabilitated Furman Building will be provided, making a minimum of 305
parking spaces available to the public, of which 150 will be dedicated to
the City;
3. The revenues to be received by the City from the 'Parking
Project as hereinafter provided will come back into the CDBG Program as
Program income available for other eligible CDBG Program activities, and, in
addition, the Furman Plaza Project, as well as the Parking Project, will
benefit the City in terms of sales and property taxes resulting from the
Project, with the increased ad valorem taxes significantly benefiting the
Corpus Christi Reinvestment Zone No. One;
4. The increased parking capacity provided by the Parking Project
may provide added impetus for development of several other buildings and
properties that have been purchased by other investment groups in the
immediate area of the Furman Building;
and
WHEREAS, the City further finds that the use of industrial revenue
bonds on this Project is a very appropriate use of industrial revenue bonds
because the downtown area is a targeted redevelopment zone that falls within
the Corpus Christi Reinvestment Zone No. One and the Central Improvement
District, and because the Project is essentially an innovative "demonstra-
tion" project in an area of downtown Corpus Christi for which there is
neither experience nor "comparables" upon which to predict the success or
failure of the Project and therefore would be only marginally feasible if
conventional lending rates were required; and
WHEREAS, the Developer is able and desires to undertake the
Project, and the City desires and is willing to provide its assistance, all
as more fully provided herein:
NOW, THEREFORE, in consideration of the premises, and in further
consideration of the covenants, terms and undertakings herein expressed, the
City and Developer agree as follows:
1. Upon the initiation of construction of the Parking Project,
the City shall transfer to the account of Developer $600,000.00 of CDBG
Funds, such Funds to be held, together with all other construction financing
for the Parking Project and the Furman Plaza Project, by a financial inter-
mediary as trustee in an interest-bearing account, the interest from which
shall become part of the Developer's Project account.
2. The Developer and/or contractor shall provide adequate
assurance of completion and protection from liens by the furnishing of a
performance and payment bond or letter of credit, or by providing such other
forms of assurance and protection as the City and Developer may agree upon.
3. The Developer shall dedicate to the City for the benefit of
the public by appropriate easement or other instrument of dedication the ir-
revocable right and privilege to use and occupy at current rates 150 parking
spaces in the Parking Project which shall be considered as part of the
City's inventory of parking spaces from which the City shall receive revenue
as hereinafter provided, all for a period of thirty (30) years.
4. The Developer shall, in addition to the parking spaces
referred to in 3 above, provide public parking spaces, regardless of zoning
requirements, in sufficient number to meet the following criteria based on a
-2-
space utilization of the Furman Plaza Project of thirty percent (30%)
restaurants, clubs and taverns and seventy percent (70%) retail and office,
to -wit: restaurants, clubs and taverns - one space per 100 square feet;
retail or office - one space per 200 square feet.
5.(a) The dedication agreement referred to in 3 above shall pro-
vide that the Developer shall operate, maintain and provide security during
normal business hours for the entire Parking Project during the term of such
agreement and during such time remit to the City on a quarterly basis a por-
tion of gross revenues from the Parking Project operation based on the ratio
by which the 150 spaces dedicated to the City bears to the total number of
parking spaces in the Parking Project as follows:
(i) During the first 20 years, the City shall receive 100%
of the product derived from multiplying a fraction whose numerator is 150
and whose denominator is the total parking spaces in the parking garage,
times gross revenues from the Project. Thus, during the first 20 years of
the Project, the City's revenue from the Project shall be based on the
following formula:
150
total parking spaces
x gross revenues x 100% = City's revenue
(ii) Commencing with the 21st year of the Project and run-
ning through the 29th year of the Project, the City's percentage of the pro-
duct derived from multiplying the fraction described in (i) above times
gross revenues from the Project shall reduce 10% each year so that the City
shall receive 90% of such product in year 21, 80% of such product in year
22, 70% of such product in year 23, and so on so that, for example, in the
24th and 29th years the City's revenue from the Project would be based on
the following formula:
year 24:
150
total parking spaces
and in year 29:
150
total parking spaces
x gross revenues x 60% = City's revenue
x gross revenues x 10% = City's revenue
(iii) Commencing with the 30th year and thereafter, the City
shall receive none of the parking revenues from the Project nor have any in-
terest whatsoever therein, except that such parking shall remain open to the
public, and in recognition thereof shall.execute an appropriate instrument
in recordable form evidencing the termination of such dedication agreement.
(b) Rates charged by Developer to users of the parking spaces
to be developed hereunder shall be based on and comparable to rates charged
users of parking spaces in other comparable, unmetered parking garages
located in the central business district. For the purposes of this agree-
ment, the boundaries of the central business district shall be co -extensive
with the boundaries of the Corpus Christi Central Improvement District.
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(c) As used in subparagraph (a) above, the phrase '"during
normal business hours" contemplates a minimum of 40 hours per week during
the usual and customary business hours on Mondays through Fridays, but noth-
ing herein shall preclude Developer from making the parking garage open and
available for public parking during other than normal business hours over
and above the required mimimum 40 hours per week. Developer agrees to co-
operate with the City by operating the parking garage for such additional
hours during which major events in the downtown area make reasonable parking
demand evident.
(d) If requested by the City, the Developer agrees that parking
spaces may be made available for reserved parking for City uses and in such
event the numerator of the fraction used to calculate the City's share of
revenue from the Parking Project under subparagraph (a) above shall be
reduced by the number of parking spaces so set aside to the City under this
subparagraph (d).
(e) The dedication agreement shall provide that these pro-
visions shall be covenants running with the land, binding on Developer's
successors and assigns.
6. The City shall cause the Corpus Christi Industrial Development
Corporation to issue industrial revenue bonds in the amount of
$2,500,000.00, plus the ordinary expenses of such issue under its normal
terms and conditions for the Project subject to all applicable state and
federal statutes and shall issue its written commitment therefor within
thirty (30) days from the date of this Agreement. The City shall provide
staff assistance to Developer in connection with the preparation and
marketing of the bond issue.
7. The Developer shall pay all normal and customary permit fees
and taxes for the Project when due.
8. The Developer shall commence construction of the Parking
Project within one hundred twenty (120) days from the date of this Agreement
and complete the same within sixteen (16) months regardless of whether in-
dustrial revenue bonds shall have theretofore been issued, and to secure
this obligation, Developer shall deliver to the City an irrevocable standby
letter of credit on a national bank acceptable to the City in the amount of
$10,000.00 drawn in favor of the City assuring Developer's performance under
this paragraph and conditioned that in the event of Developer's failure to
comply with the times of performance provided in this paragraph, then the
City may draw on said letter of credit for the full amount as liquidated
damages. Developer and the City agree that the actual damages which might
be sustained by the City by reason of the failure of Developer to comply
with the time constraints established in this paragraph 8 are uncertain and
would be difficult to ascertain and that said sum of $10,000.00 would be as
to each of them reasonable as liquidated damages. Should Developer fail to
substantially complete the parking garage within 24 months from the date of
this Agreement, then the initial $600,000.00 payment by the City shall be
refunded to the City, plus interest calculated at 10% per annum.
9. Developer shall from time to time duly pay and discharge, or
cause to be discharged or paid, when the same become due, all taxes, assess-
ments, and other governmental charges which are lawfully imposed upon the
Project and which, if unpaid, may by law become a lien or encumbrance upon
the Project and thereby impede or otherwise adversely affect the holding of
the Project for its intended uses.
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10. Developer shall at all times keep the Project and related
premises in good and safe condition and repair in the occupancy, mainte-
nance, and operation thereof. Developer shall comply with all laws,
ordinances, codes and regulations applicable thereto. Developer shall not
permit, commit, or suffer any waste or impairment of the Project or any part
thereof.
11. Developer shall submit to the City and the Secretary of
Housing and Urban Development ("HUD") such data, reports, records, and docu-
ments relating to the operation of the Parking Project as the City and HUD
request in order to permit the City and HUD to determine whether the opera-
tion of the Parking Project is in accordance with this Agreement and the
rules and regulations of HUD.
12. Developer agrees to insure and keep insured the Parking
Project against loss or damage by fire, windstorm, and any other hazard or
hazards as may be reasonably required from time to time by the City during
the term of the dedication agreement referred to in paragraph 3 above to the
extent of the full insurable value of said improvements, in such form and
with such insurance company or companies as may be approved by the City, and
to deliver to the City the policies of such insurance, having attached to
said policies such indemnity clause as the City shall direct. Developer
agrees to deliver renewals of such policies to the City at least ten (10)
days before any such insurance policies shall expire. Any proceeds which
the City may receive under any such policy or policies may be applied by the
City, at its option, to reduce the portion of CDBG Funds, if any, not yet
recovered from its share of revenues from the Parking Project in such manner
as the City may elect, or the City will permit Developer to use said pro-
ceeds to repair or replace all improvements damaged or destroyed and covered
by said policy at the request of Developer.
13. Developer agrees to indemnify and forever save harmless the
City, its officers, agents, and employees, from any and all lawsuits,
claims, demands, liabilities, losses and expenses, including court costs,
attorneys' fees, and fees and expenses for expert consultants, for or on
account of any injury to any person, or death at any time resulting from
such injury, or any damage to property, which may arise or which may be
alleged to have arisen out of or in connection with Developer's activities
under this Agreement. With respect to the Parking Project, Developer agrees
to secure and maintain at its own expense throughout the term of the dedica-
tion agreement referred to in paragraph 3 a policy or policies of compre-
hensive general liability insurance naming the City as an additional insured
with minimum limits of $500,000.00 for bodily injury or death per individ-
ual, $500,000.00 for bodily injuries or death per occurrence, and
$100,000.00 for property damage. Said insurance policies shall also include
coverage within the above limits for any personal injuries which may be
alleged other than bodily injury. On each policy the City shall be named as
an additional insured, and certificates of insurance for all such policies
shall be furnished to the City and maintained throughout the term of this
Agreement. Each certificate must provide for thirty (30) days notice by the
insurer to the City prior to any cancellation of such policies. Developer
also agrees to maintain adequate workers compensation insurance as required
by law.
14. Developer agrees that it will record all financial
transactions according to generally accepted accounting procedures and that
it will provide any and all information pertinent to its operations and
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revenues from the Parking Project as the City may from time to time request
for audit purposes.
15. Developer further agrees to comply with the following federal
requirements and regulations:
(a) to conduct its activities with regard to this Agreement in
accordance with OMB Circular A-102, A-87, A-122, and HUD's Applicability to
Community Development Block Grants with reference to Attachments 8, C, and 0
thereof;
(b) to comply with paragraph 570.506 of the Federal Register
with reference to program income;
(c) to comply with all applicable Equal Opportunity regulations
and specifically, Executive Order 11246, as amended, and Section 3 of the
Housing and Urban Development Act of 1965, as amended;
(d) to comply with any other rule or regulation promulgated by
HUD during the term of this Agreement which is directly related to Community
Development Block Grant funded activities, when so informed in writing by
the City;
(e) to comply with Section 109 of the Housing and Community
Development Act of 1974, and the regulations issued pursuant thereto (24 CFR
570.601), which provide that no person in the United States shall, on the
grounds of race, color, national origin, or sex, be excluded from participa-
tion in, be denied the benefits of, or be subjected to discrimination under,
any programs or activity funded in whole or in part with funds provided by
the Community Development Block Grant Program;
(f) to not discriminate against any applicant for employment
because of race, color, religion, sex, or national origin and take affirma-
tive action to ensure that applicants are employed, and that employees are
treated during employment without regard to their race, color, religion, sex
or national origin. (Such action shall include, but not be limited to, the
following: employment, upgrading, demotion, transfer, recruitment or re-
cruitment advertising, lay-off, termination, rates of pay or other forms of
compensation, and selection for training, including apprenticeship.);
(g) to post in conspicuous places, available to employees and
applicants for employment, notices setting forth the provisions of the
aforementioned nondiscrimination clause, and in all solicitations or adver-
tisements for employees placed by or on behalf of Developer, state that all
qualified applicants will receive consideration for employment without
regard to race, color, religion, sex or national origin;
(h) to agree that pursuant to the regulations promulgated
pursuant to Section 3 of the Housing and Urban Development Act of 1965, as
amended, 12 U.S.C. 1701u, the following assurances of compliance entitled
"Training, Employment, and Contracting Opportunities for Businesses and
Lower Income Persons," shall be included in each Section 3 covered contract
or agreement resulting from this Agreement:
(i) to render of the greatest extent feasible
opportunities for training and employment to lower income residents of the
Project area and award contracts for work in connection with the Project to
business concerns which are located in or owned in substantial part by
-6-
persons residing in the area of the Project;
(ii) to carry out the provisions of said Section 3 and the
regulations issued pursuant thereto by the Secretary set forth in 24 CFR
Part 135 (published in 38 Federal Register 29220, dated October 23, 1973),
and all applicable rules and orders relative to this Agreement which in-
clude, but are not limited to, development and implementation of an affirma-
tive action plan for utilizing business concerns located within or owned in
substantial part by persons residing in the area of the Project, the making
of a good faith effort, as defined by the regulations, to provide training,
employment, and business opportunities required by Section 3, and incorpora-
tion of the "Section 3 clause" specified by Section 135.20(b) of the regula-
tions in all contracts for work in connection with the Project. Developer
certifies and agrees that it is under no contractual or other disability
which would prevent it from complying with these requirements;
(iii) to comply with the provisions of Section 3, the
regulations set forth in 24 CFR Part 135, and all applicable rules and regu-
lations set forth and orders of the Secretary issued thereunder prior to
approval of this Agreement, which shall be a condition of the federal
financial assistance provided to the Project, binding upon Developer, its
contractors and subcontractors, its successors, and assigns to the sanctions
specified by this Agreement, and to such sanctions as are specified by 24
CFR Section 135.135.
16. The Developer and the City further agree to cooperate fully in
connection with this public/private partnership and to take such steps and
actions and provide such assistance to each other as may be reasonable and
appropriate under the circumstances; provided, however, nothing contained in
this paragraph 16 shall ever be construed as obligating the City to provide
any direct financial assistance not otherwise provided for in or contem-
plated by this proposal or formally approved by subsequent Council action.
17. It is understood by both parties hereto that 3rd Coast
Investments, Inc., contemplates the formation of a developer entity for the
Project, to be called Furman Plaza, Ltd., a Texas Limited Partnership, in
which 3rd Coast Investments, Inc., will be the Managing General Partner, and
it is agreed that this Agreement may be assigned by 3rd Coast Investments,
Inc., to Furman Plaza, Ltd., or such other developer entity formed by 3rd
Coast Developers, Inc., should the name Furman Plaza, Ltd., not be avail-
able. It is further agreed that as used in this Agreement the term
"Developer" shall apply to 3rd Coast Investments, Inc., or such other
developer entity in which 3rd Coast Investments, Inc., may be Managing
General Partner and to whom this Agreement may be assigned.
18. Notwithstanding any other provisions hereof, should Developer
breach any section or provision of this Agreement, the measure of damages
recoverable by the City on account of such breach shall be limited to the
$600,000.00 of CDBG Funds advanced hereunder and the $10,000.00 specified
under paragraph 8 above. The City agrees, however, that prior to declaring
a breach of any section or provision of this Agreement, it shall give writ-
ten notice to Developer, which written notice shall include: (a) a state-
ment of the nature of the breach, and (b) the action required by Developer
to cure such breach and the time period within which such required action
must be taken by Developer. Developer shall have a period of not less than
thirty (30) days after receipt of such written notice within which to cure
any breach.
-7-
19. All notices given pursuant to the provisions of this Agreement
shall be made in writing and delivered in person or mailed, postage prepaid,
addressed to the applicable party as follows:
FOR CITY:
FOR DEVELOPER:
Ezequiel P. Elizondo
Department of Housing and Community Development
City of Corpus Christi, Texas
302 S. Shoreline Drive
P. 0. Box 9277
Corpus Christi, Texas 78469
Armando J. DeLeon
3rd Coast Investments, Inc.
P. 0. Box 18302
Corpus Christi, Texas 78418
20. If any provision of this Agreement is held invalid, the
remainder of this Agreement shall not be affected thereby if such remainder
would then continue to conform to the requirements and terms of applicable
law.
EXECUTED in duplicate originals this `f_1. day of `jl.c-ck-1,,-6(.44-,.
1984, both of equal force and effect.
ATTEST: CITY OF CORPUS CHRISTI
By.�-
(,c�l-�-L• /City 'Secretary y'Secretary
APPROVEDN6kLkJF�� , 1984:
J. BRUCE AYCOCK, CITY ATTORNEY
By
n�C
Assista ty Attorney
L
(9 • /S7 5 AU IUYIci
BY c o ciL =7G -2Y„
de.,2
SECR TARP
By
Edward A. Marti , City Manager
By
W. Thomas Utter
Assistant City Manager
3RD COAST INVESTMENTS, INC.
By it y / �'•/
Its i i : • •�<.: =
-8-
Corpus, Christi, T
tD
day of
, 1981.
TO THE MEMBERS OF THE CITY COUNCIL
Corpus Christi, Texas
For the reasons set forth in the emergency clause of the foregoing ordinance
or resolution, an emergency exists requiring suspension of the Charter rule
as to consideration and voting upon ordinances or resolutions at three
regular meetings; I/we, therefore, request that you suspend said Charter rule
and pass this ordinance or resolution finally on the date it is introduced,
or at the present meeting of the City Council.
Respectfully, Respectfully,
MAYO
Council Members
E CITY OF CORPUS CHRISTI, TEXAS
The above ordinance was passed by the following
Luther Jones
Betty N. Turner
David Berlanga, Sr.
Welder Brown
Leo Guerrero
Dr. Charles W. Kennedy
Joe McComb
Frank Mendez
Mary Pat Slavik
vote:
18329