HomeMy WebLinkAboutC2007-231 - 6/26/2007 - ApprovedFINA~.
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PRELIMINAR~ ~~Fl~~~'~U~~'U~E FI~AN~II~~ A~R~E~E~iT
'~'hi~ ~relxminary Infrastruc~ure Fxna~~ir~g ~greernent {",~greemen~"} i~ entered in~o by
and between the ~ity of ~orpus ~hr~~ti, Te~as, a horne-~u~e ~unicipal corporatian {th~ "~i~y„}
and ~rassto~vn ~omrn~n~, ~L~, a '~exas lirni~ed lia~ilit~ cotnpany, ~"De~re~oper"} ~orm~d ~~
Ha~vkins ~om~anies, LI~~, an Idaho li~ntt~~ ~iabilit~ compan~, and ~BL ~i Associa~es
Properti~~, Inc., a Delav~are corparation.
The purpose of this Agree~n~n~ is to set fort~ the term~, c~ndition~ and ob~igati~ns of an
agreement between the ~it~ and the De~eloper pur~uant ta ~hapter ~ 8~ af the Texa~ Lo~al
C overnr~er~t ~od~ ~"~hapter ~ 80"} by ~hi~~ the Deve~oper and the ~it~ inte~d fa partici~ate in
the development of a life~ty~e and pawe~ cen~er ~o be known as "Cross~av~ ~~r~r~or~s" ~the
"Pro~ect"~ to ~e developed on an approxima~e~~ ~~0-acr~ ~ite in ~orpu~ ~hristi, T~~as. The
concep~ua~ p~an fnr the Pro j ect is at~ached as Exhibi~ A.
This Agreernent v~ill ev~den~e the und~r~tanding~ be~v~en the D~velope~ an~ the ~ity
re~ardin~ the ac~uisitian and ~eveta~~n~nt of th~ Pra j ect b~ the ~]e~elope~ ~pa~ a~ite t~at i~
gene~al~y a~acant, ~nprodu~tive par~el a~ land which, upvn camp~etian af the Pr~je~~, ~rit~
cnntain a tntnimum of 50~,~~~ square feet of retail space an~ a r~aximu~n of 1,5~0,~~0 square
~~~~ ~~ ~~~1~ ~~~C~ 1~1 ~~~~~1~1~~ I'Y11X~~-use dev~lopr~en~ designed to ~ontain ap~rox~r~at~l}~
~,2~~,~~~ ~quare feet in total to be dev~~oped over t~ree ~ears fro~n the e~f~c~zv~ date of this
Agr~er~ent, on the term~ and condition~ se~ fot~h i~ this Agreen~ent.
This Agre~men# contains ~he ~greement~, und~rstandin~s, obligations ar~d ~uties af the
~it~ and the Devel~per r~la~ing ~o: 1} the terms f~r ~nan~ing c~rta~~ infrast~uctu~~ and ~e~ated
cast~ of the P~o~ect through a ta~ increr~er~t r~~n~est~r~~n~ ~~ne o~ ~o~parable tax r~ba~e progr~rr~
to be ~omm~nly knovv~n a~ t~e "~ro~stawn ~ommon~ TIF" cvnsisting salely of the Proje~t site
to~ether ~ith those a~~ acent roadwa~ and easement ar~as on ~hich aff site publi~ infras~ructure
~nr~p~ovemen~s a~e p~~nned; ~~ t~he ~~~igattans ~f th~ D~v~I~p~r C~riC~~r]]~]~ th~ C4riStructiQn Df
v~riou~ portion~ of the i~npro~en~en#s b~ the De~e~oper re~ating to the Project; a~d 3~ the
proc~~ure~ for ~re~tion ~f the ~ros~~owrY ~o~nmons TIF ~nd its admini~tration. The terrns and
conditian~ of ~his Preli~ninary Infrastructure Finan~in~ A~reement shall farm the ~asis of the
Ir~frastructure Fin~ncing Agreement appra~ed as part ~f the ~r~~sto~ ~~mmons T~~'
proceeding~ d~scribed i~ Part II~ b~~ow.
I. Agree~n~nt~ Re~arding ~ro~~tov~ ~ommons TIF Finan~~~g Terms
A. I~e~eloper's Construction ~f Al~ ~nfirastruc~u~~. ~n rel~ance upo~ the ~~t~'s approval
af this A~reement und~r Chap~er ~~0, the Dev~~o~er agrees to proceed v~i~h ~he acqui~~t~on ~f the
Proj ect ~i~e, ~he de~elapme~t of the Proj ect, and the c~nstru~tion of the infra~~ruucture
~rnpr~~er~ent~ ~or the Proje~~, ~~]01'~1~I1 0~ V~~ll~~l ~I'~ ~~~~~'1~7~~ 0~1 EX~11~1t B~~~~1~~ W~l1C~ ~T~
(~~~~~11~~C~ ~~ ~~l~ ~1~ ~~ ~]~ ~~1~1~1~ "pro~ ect c~~ts" undet~ ~h~pter ~ 11 ~f t~e Te~a~ Tax Code
~"~hapt~r 311 "}. All o~ the p~~j ect cost~ ~ill be ~~per~ded ~o~r pra j ects v~ith~n ~e b~undar~es of
~40~'-~3 ~
~61~G147
1~~047-1G~
~ross~own ~or~mons
the ~ro~stown ~or~rn~n~ T~~. '~he D~velope~ ~~a~l pay all en~ineerin~, p~an~~ng, account~ng,
archite~tural, leg~I fees and expen~es, surve~, ~es~ir~g, laboratvey cast~, license fee~,land ~Ie~r~ng
~n~ gr~~ing C~St~, ~d~~~ti~ing ~n~ ~~h~r ~i~~ing CO~~~, arr~~un~~ ~u~ ui]~~~ COi]~t~li~~i~~ COri~r~ct5,
costs af labo~ a~d ma~~ria~, 1I1~~1I'~~~~ ~]~~~'11~lIYlS, ar~d ot~e~ co~t~ and ~xpenses in~urred in
COi]i]~Ct1~i] W1t~l ~h~ ~OriSt~iCtlOi] ~f ~L~~~ i~1f~~St~IiC~Ui~~ li~px~~~m~nt~, whiCh C~~fS ~~ S~~ f~rt~ li~
Exhibit ~ attached are est~mate~ to approxima~e ~SS,3~~,000. The ~~ty ~hal1 ~at ~e~r any of
su~~ co~ts ou~ ~f i~s current r~~enues, including speci~~a11~ the ~~t~'s Ceneral Fund.
B. ~it~'s Limited ~bli~ation ~f Reimburs~m~nt. ~11~~~C~ t0 ~~i~ 11I~'11~~10~15 ~~'OVl(~~~
below, ~he ~~ty agrees, on~~ frorrr re~enues ~enerat~d th~ough the c~eation of th~ ~r~~stown
~omrr~~r~s TIF and the re~at~d pr~cee~ings described in Part ~II, t~ ~ein~b~~~e ~e Deve~oper costs
verified b~ the ~~ty ar xt~ des~~nee of ~he ~apital cv~t~ and othe~ costs paid or incurre~ 6y th~
Deve~aper in ~~ancin~, plannin~, managin~, ~~~1~111~~, acquir~r~g, ~onstructing, and ~r~~tallin~
~he propased ~~mpro~~~aer~ts ~i~~ed in Ex~i~it B attached and obtai~in~ reimbursemen~ therefor,
whether befa~e ar a~er the date ~f this Agreement in thre~hold arriuunts as foll~ws:
~~ 3,218,7~~ ~for ~ff ~ite Infras~ructure I~nprove~nents as ~et forth in ~xhib~t ~} for the
dev~loprr~e~t of at ~~ast 5~~,0~~ squar~ fe~t of r~t~~l ~pa~e;
~~0,5~~,~~~ ~$13,~18,7~0 for ~~',~ite Znfira~~ructure Improvements and the ba~ance for
~n-~~te Infirast~cture ~mprovement~ as ~et f~rth in E~hi~it B} for the deaeloprnent of ~~
least 75~,~D~ ~quare f~et af r~tail space;
$~7,~~~,0~~ ~$13,~ 15,75~ for Off~~ite Infra~tructure Impro~ement~ and th~ ~alance f~r
~n-~ite ~nfiras~ructure ~mpro~e~nen~s a~ set forth ~n Exhibit B} for ~h~ de~elop~nent of at
teast 1,OOO,D~~ ~quar~ fee~ of r~tai~ space;
$33,5~~,~~~ ~$13,~ ~ 5,75~ for ~ff-~ite Infrastruc~ure ~mpro~ement~ and the balance for
~n-~ite Infrastructure ~mpro~ement~ a~ ~et fQrth in Exhibit B} for the deve~aprnent of at
leas~ 1,25~,~OD square f~et o~retail space; or
$4D,~~~,~~0 ~~ l~,~ ~ 5,75~ for ~ff ~ite Infrastru~ture Impro~e~ner~ts and ~e balanc~ fo~
~n-~ite ~nfra~truc~ure Impro~ements as set forth ir~ Exhibit B} f~r the de~elopn~er~t ~f at
teast I,~~~,~~~ ~quare fee~ ofretai~ space.
The Deve~oper agrees nat to ~on~tru~t more than 1,~~~,~~~ square feet of retail spa~e during the
period en~in~ three ~~} ~ear~ fro~ the date of th~s Agreemen~. The D~~e~nper r~ay deer~ the
Pr~~ect "co~npleted" at an~ o~the above 1e~el~ an~ accept t~e ~n~ount ~freitnbursen~ent speci~ied
fo~ s~ch le~e~ of ~otnple~i~n, subject ta the terms and canditio~s ~f this A~reemer~t. The ~it~'s
a6li~ation for fund~ng rei~bu~~ement~ i~ ll~ntte~ to rev~nue deri~ed or received fro~ the
P~uperty Tax ~~c~~ments ~nd Sa~~s Ta~ Inc~~m~nts ~a~ such terms are de~ined in ~e~~i~n Y.~.
~e~o~v} and pursuan~ to the pla~ned issuance of ~onds as descr~b~d i~ P~rt II~, The ~i~y agr~~s ~o
ut~~~~e its aut~o~it~ u.nder ~hapter 3 ~ 1, ~hap~er 35~, and ~hapter 4~ ~ of t~e Texa~
~'I'~I1S~O~x1~11 ~~C~~ lI] ~I'~~~' ~D ~~~~C~l.l~~~ l~S ~~~1~~~1~I1S ~111~~~' ~~115 A~~~I]1~IIt.
~
~. ~har~n~ of Tax In~rem,ents. T~i~ ~1~ ~~~~5 ~U~ ~~1~ 1~I~ll~~~ C~U~~~10~10~ ~h~ ~~'~S~~~WIl
~ammons TIF ta deposit into ~he tax incremen~ ~und e~tab~i~hed for the ~ro~s~~~n ~~rn~an~
TIF or ~~herwi~e reba~e to the Dev~lope~ the following portions of the ~a~ ~r~cr~~ents ~~he "Ta~
Increrr~ents"~ as su~h term i~ calculat~d ~ursuant ta Chap~er 311:
~7°/a vf ~~e ~ax increr~ents generated b~ ~he Project ~rom munic~~a~ ad ~aloretn
tax~s on ~ea~ ~ropert~~ and irnpro~e~ents {the "Pr~pe~ty '~a~ Incremen#s"}; and
~7°I~ Of ~]~ t~X 1i]~i~~~~~tS g~n~r~t~~ b~ ~h~ PrO~~Ct ~COm t~e ~r~~ C~nt ~ 1~~
municipal sales an~ us~ ta~ ~~he "~ale~ Tax Increments"}; provided that, ~one of the
~a~es Ta~ Incretnents ~~nerateal b~ Rel~cations ~as hereina~~x ~e~ined} ~~a11 be included
in the cal~ulatiot~ of the deposited a~noun~. The formu~a for th~ depos~~ ~f ~ales '~ax
~r~~rerr~~nt~ sl~all b~ as foll~v~s;
G7°/o of ~To#al ~a~es ~'ax ~ncrernents -~a~~~ Ta~ Incremen~~ Fram Relo~atian~}
The par~ies spe~i~ca~1~ int~nd that the ~ale~ T~ In~~ements gen~ra~ed b~ Relo~a~io~s in ~he
Pro ject shall first b~ ~ubtracted fron~ the total ~ales ~'ax Incr~ments so ~hat the sharing
~ercenta~e wi11 be app~ied anl~ to t~e ~et new arnaun~ of ~a1e~ Tax Incrernent~ generated by the
Projec~. As u~ed in ~hi~ Agre~rr~en~, "Ta~ In~ren~ents" ~hal~ rn~an the ~ropert~ ~'ax ~ncrer~ents
and the ~ales Tax Increrr~ents.
I~. Arnounts Exclud~d ~rom Tax in~ren~et~t Fu~~-d. T~~ fv~~owing ~ddition~l ar~o~nts are
spe~ifical~y ~xcluded f~~r~ ir~c~u~ion in the tax incre~nen~ ~und fvr the ~ros~t~~vn ~ornrnons TIF:
Project;
1} A~l n~un~c~pa~ ad valarem taxe~ gen~rated b~ ~ersonal praperty inc~uded in the
~} A,11 sales and use ~axe~ coll~cted b~ ~he ~i~ for cri~ne con~rol and pre~entio~
ar pursua~t to ~ectiQn~ 4A or 4B of the D~~eloprnent Corp~ration A~t;
~} Al~ hotel ar mot~l ta~es g~nerated ~i~hin the ~~a~st~wr~ ~ommvn~ TIF; and
4} A11 uti~~~ies re~enues and ~ther fees c~1l~cted by the ~it~ from the Proj e~t.
~} The base ad ~al~r~m taxes and any sales ~axes exist~ng at the tim~ of
establi~~i~~nt ~f the ~rossto~n ~ommons TIF.
~. ~)ef n~tian of Relacations. A re~ailer ~hall be consi~er~d t~ ha~e r~located from an
~~~~~1I1~ 1~C~~10~1 ~D ~~1~ pT~~~C~ 1~ 1t O~~I`~~EC~ ~ ~~t~l~ ~~~~'~ lI~ ~~1~ C0~70~'~~~ ~~~ll~~ 0~ ~~1~ ~1~
~vith~n ~hree ~3} ~ears imr~ediatel~ preceding oper~ing of its nev~ retail ~tore in the Pru~ec~ and it
~1o~es that ~t~re ~it~in thr~e ~3} year~ immediate~y fol~ov~ir~g opentng vf i~s new retail store
inthe ~roject. In t~e event t~a~ t~~ nev~ stare in the FrQje~~ i~ 1ar~er t~an its cl~sed store, t~e
p~rc~ntage of ~~a~~ Flo~r Area ~as such term is de~ned in in~ustry standards} ~h~ch repr~sents
the increas~ sh~~l nat be considered part of the Re~v~ation bu~ ~~a11 be ~reated a~ ne~ stor~ sa1e~.
~A c~p~ of the ~ross Floar A~xea ~tandards sha~l ~e furnishe~ ta the ~i~ b~ the De~eloper prior
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to the ~reation of an~ rexnvestmen~ zo~~ ~a~pri~~ng t~e ~~asstow~ ~ammon~ TIF ar ~he openin~
af an~ store~~} In the even~ tha~t ~he xeta~ler'~ ne~v store ~n ~he Project ~s s~n~~ler ~han its ~~os~d
~tore, no a~ju~tmen~ ~hall be made. A retaiter v~i~l not be ~onsidered a Relocati~n i~ the Cit~
~~L1I1C1~ ~~ t~l~ ~X~ ~~~~I'YI]1~1~~ ~I~ 1~~ S~I~ ~1~~~'~tl~~l ~~l~t ~1~~1~~': ~i} tk~e store ~lasure was due ~~
ecanornic circurnstan~es n~~ re~ated to th~ open~ng of the Pro~ ec~, or ~~~~ ~~ the ret~i~er ~pe~~ a
comparable ~tvre at anather ~oca~i~n elsewher~ it~ the ~ity, o~ ~~i~} t~e ~pace vacated b~ the
~etailer is re-leased to a camparable r~tailer. I~r addition to the for~~oing, a r~~o~atin~ re~ailer
ma~ not be allav~ed to establis~ a retail outlet in the ~rosst~~vn ~ommons ~evelopn~ent unless
t~e r~~ai~er is required by contract to caop~r~~e upon t~e request of it~ f~rmer la~d~ord t~ release
it~ furrn~r ~pac~. N~tv~i~~star~din~ the for~going, ~"small b~~ine~s retail~r" n~a~ relucate to #~e
Pro~ect and n~t be co~~id~red a~ a Rel~~a~an. A"~rnal~ ~u~iness retailer" is de~ned ~s a single
r~~~~~r ~l~.~l~l~ ~ ~ Q~' ~~~~~ ~I~l~]~Q~~~S ~~1~ I]0~ ~CC~1~?~1~1~ ~ Il~l~~~l-~~Il~~~ ~~C1~I1~ 1~1~~11~ t~l~
CO~O~~t~ ~1TTl1~S 0~ t~~ Cl~.
F. ~penin~ of the Praje~t. The Fra~ect w~ll be deemed opened a~ the ti~ne state~ ~~ ~e
D~~e~o~er in its reque~t f~r de~ignati~n of pro j e~t completi~n ~hen sq~are footage of retail
~pace in an arr~au~t af a~ Ieast o~e of the thresh~l~s as ~et forth i~ S~~ti~n I.B. above ha~ been
develaped, and ~uch space sha1~ ~e deemed ~he "~roj~ct" for ~1~ purposes under this ~gre~n~ent.
Th~ Pro~ect sha11 ~e considered full~-1ea~~d ar accupied r~~en re~o~d~ ~er~~ed by the ~ity
~~~~~~5~1 ~l~~ 1~ 1~ ~~ ~~~~~ ~~~Io 1~~5~{~ ~~ ~CCU~1~C~. In the ~ve~t t~at the ~]evel~per establ~sh~~ an
op~ning d~te prior to reaching 9~°Io oc~upanc~, the percenta~e that Re1~c~ti~n stores repre~ent
o~t o~ the total Cross Flovr Area whi~h actuall~ is ~~a~ed ar accupied at such tir~e shall be
a~plied to any unleas~d o~ occ~pie~ spa~e up to the ~~~Io ~evel. The de~d~ine for ~p~nin~ of ~he
Pro jec~ ~s thr~e ~3} year~ fro~n the date of thi~ Agreerrient.
C. ~alculat~an vf Relocations ~ales, The catculatian of Relocati~n~ sh~l~ ~ommer~~e
~hen t~e Develaper ~nr~aunces that the Praject ha~ been carriplete~ at a le~rel auth~ri~ed in
~ecti~n I.B. abuve. ~r~ the even~ t~at the Devel~per is able ~o ob~atn actual sa~es informatia~
fror~ al~ stnr~~ whi~h a~e Relo~ations, the sales and use ta~es fratn the actua~ sales shall be
~U~7~'~~~~C~ ~O~I] ~~1~ t~~I ~~~~~ T~~ II~CT~II'1~I1~~ ~~ ~Y0~1C~EC~ 1~l ~~Ct1U~1 I.~. a~o~e, ~'he De~reluper
agrees t~ exerc~se ~easanable effort~ to ob~ain ac~ua~ ~ales and u~e tax infvrmation fro~a ~a~h
s~ore whi~h is ~ Relacatian, and to p~vvide ~uch inforn~atior~ to t~e ~it~ pron~ptly upon the
Dev~l~per'~ receipt there~f. Alternativei~, the ~ity and the Develaper agree ta seek an
agree~nent with ~he Texa~ Cornptroller of ~~blic Accounts concernin~ the ~ateg~rization of ~ales
T~x ~ncrements generat~d by the ~~o~~tov~n ~ornmon~ TIF for c~mpliance ~i~h these
pro~isians. In the ~vent that the par~ies are una~~e t~ ob~ain actua~ ~ales information fo~ t~e
Relacation stores, the ar~o~nt vf ~a~e~ shall be determ~ned ~n a pr~~~rtion~te ba~i~ uti~i~ing ~he
Cro~s Floor Area af the store ~ex~~udin~ any ~nc~ease in ~i~e from ~he cla~eal lvcatian} cvmpared
t~ t~e ~ross ~~oor A~~ea o~ retail space in the entire Projec~ as ~o~n~~eted on ~~~ date af ~uch
calcula~ivn.
H. If11~11t~~10I] ~I1 R~~~C~~i0~1~. The I~eveloper agrees that in the event Relacat~on~
exceed 3~°/o v~ the tatal ~r~os~ Flaor Area o~ ~e~axl ~pace in the Frnje~t, as ~etermined in ~ect~or~
I,E. abov~, s~ch event ~~all be a default hereunder and the ~eve~oper sha~l forfeit the right to
receive reimbu~se~ment ~or a~~ af the capita~ costs ~or the p~aje~t~ out~~ned on Exh~bit B other
than thase proj ects ~v~ich are ~~sigr~ate~ as ~ff~Site Infrastrt~c~ure Improvernents. Additiona~I~,
4
~f the Praje~t, at cQmplefiion, ~o~ntains at Ieas~ 1,4~~,~~~ ~q~are f~et af r~~ai~ ~pa~e, Rela~ations
from an~ rnu~~i-#~n~Il~ ~~C1~1~ W1t~1xll ~~1~ C~I`~~~'~~~ I1I~11~S 0~ t~l~ ~1~ I17~~ ~1~~ ~~C~~C~ ~~~~~1
percent ~ 15~Io} ~f retail space in the Project,
I. Reimbursement ~~an~ Other ~~urce~. ~n the event that the ~it~ arranges for
r~irnbursemen~ o~ any o~ t~e I~evelo~er's inf~astructure ca~~~ lis#ed on Exh~bit B from o~her
~aur~e~, such as T~DOT ur applicab~e trust fund~ e~~abli~~ed for such purpases, an~ such
reimbt~xsements sha~l be ~re~i~ed against the re~mbur~er~en~ as detern~ir~ed by ~ecti~n ~.8. abo~e
to be r~imburs~d to Developer pursuant ta t~e ~rosstown Carnm~ns T~F ~nd ~he sharir~~ ratio far
Tax Yncr~rr~ent~ shall be proportio~ately re~u~ed so t~at fa~ th~ duratt~n af the TIF th~ sa~ne
~o~erage ratio~ apply ~o the reduc~d amaunt a~ applied to t~e ~r~gina~ amount of re~m~ursemer~t.
J. ~~ntinued-~peration~. ~ub~~ct to the p~av~sians of ~hapter 31 ~, th~ ~rosstown
~ommo~s TIF sha~~ con~inue in existe~nce far a perio~ end~r~~ ZS ~e~r~ frar~ the date of open~n~
ofthe Project. The Deve~oper currentl~ es~ir~a~es t~at t~e apenin~ date of the Praject sha~~ b~ on
or abo~t J~~y, 2010. The De~eloper agrees ta maintain ~he ~raject as a majo~ retail ar~d mixed
use de~el~pment f~r the duration af t~e ~ros~t~wn Con~m~ns TIF. An~ defaul~ in su~h
obliga~ion s~a~~ resul~ in the forfeiture ~f ~he right to re~eive reimb~rsement for a~~ of the ~apital
cn~ts for th~ pro j ect~ out~ined or~ Exhibit B other than #~o~e pro j ects wh~ch are designated a~ ~ff
Site Infra~tru~~u~e Imprave~e~~s, and an~ incer~tives in ex~ess of said amaun~ di~bursed ta the
Develop~r shall be returned to the ~ity,
I~. Obl~~ations of the I~eveloper ~oncerning ~onstructian a~ the Pro~ect
A. Campliance ~vi~h ~rdlnan~es. The De~~~ape~ agree~ to compl~ ~vith a11 ~ity mas~er
p~ans, zanin~ ordinances, ~UII~fII~ CD~~S ~l~(~ Dt~1~T ~~~~1C~~~~ ~1~ ~~~1I1~I1C~3 ~Il~ I`~~~11~~10~15 ~Il
ca~nectio~ with the D~~e~oper's constructior~ of the Pro~ect, ~u~~e~t to cot~pl~anc~ ~vith any
Devel~pm~nt Agree~nent ent~red into b~r the De~ela~~r and the ~ity ir~ co~nection v~ith the
Pro j e~t.
B. ~reation af Ne~v Jobs. 'T~e De~re~oper agrees to ~anstr~ct ~he Proj ect ar~d assure ~hat
at l~a~t 50~ n~w j~b~ v~i~l be created ~~ ~~tail estab~~shr~e~t~ ~~cated ~rit~~n the Project with~n stx
{~} months af car~plettan ~f the Pro~ect, whicl~ jvb~ ~il~ be ma~e available ~rin~ipa~ly to local
residents. T~~ De~el~p~r s~~~~ O~t~ii~ ~~~t1~C~ti~~i ~~~i itS t~ii~~]~~ O~ OCCUp~ritS ~S t0 t~i~ ~Uri~~~~
0~ I1~W ~O~S Cr~~~~~ lI~ CQ17'1~~1~I1~~ VV~~] ~hl~ ~?I'0~1~~~~1. ~s ~~ed her~in, th~ ~erm "jo~s" sha11
m~an fu11-~rrre equivalent pa~~tian~ providing a reguiar war~ schedu~e of at 1~ast 3~ h~urs per
v~ee~,
~. U~1~l~~~I411 of ~o~al C~n~ractors an~ ~u~~~ ers. In considerat~on ~f the
reimbur~~me~~s ~r~vide~ in ~ect~on I.B. above f~r the ~n-~~~e Infiras~i~~ure portion ~f the
P~a ject costs, the ~e~eloper agree~ to exercise r~a~onable effarts i~ ~~ilrzin~ local cot~tracto~s
and supp~ier~ in the canstru~tion of the Pro~ect ~vith ~~~a~ ~f a~ leasf 30°/o af ~he total dol~ar
arnaunf of a~l cQn~tructivn ~a~~ra~~s an~ supply ag~eements being paid to ~o~a~ cantract~rs ~n~
supplters. A~on~r~ct~r o~ supplre~ ~ha11 b~ ~~nsidered a~ lo~a1 if ~~ has rr~aintained an of#ice
within the Carpus Christi ~rI~A fo~ at leas~ ~ne ~ear. This goa~ ~hal1 ap~l~ ta the total amount ~f
5
all cans~ructivn ~o~tract~ and supp~y agreements mad~ ~y the Deve~oper in c~nne~ti~n with t~e
construc~i~n of the ~rv~ect, not ~ust the ~anstr~rctior~ ~~t~tracts ar~d sup~l~r agreer~ents rrrade it~
co~nection v~ith the infr~str~cture improvements ~tsted ar~ ~xhibit B. The par~ies acknov~ledge
that svrr~e const~uctian ar~d sup~~y ag~reerraents will be contro~le~ by particul~r ~enants af the
Developer and no~ undex the cor~~rot ~~ t~e ~e~r~lop~r. The De~eloper agree~ t~ ~nc~urage ~uch
third parties to a~apt a compa~a~~e g~al af 3~°I~ of their construction ~osts, bu~ the ~~t~
ack~owledges that Devela~er ha~ no 1ega1 authori~y ir~ connection with ~~ch th~~d-part~
cor~t~acting.
~. [Jtili~atio~ D~ _D1~~~V~I1~~~C~ BL151n~~S Enter~ris~s, In cons~de~ation of the
reirribursements prn~ided in ~ection LB. ~bove for the ~n-~i~e ~nfra~tructure portxo~ u~ th~
Pro j ect costs, th~ ~~v~~~p~r ~gr~~~ ~~ ~xer~~S~ r~~50n~b~~ ~ff~~tS ~n lit~1~211~g C~Yiti~~tOTS and
sup~liers in the ~onstruc~on of the Prajec~ which are determined ta ~e disadvar~taged busine~~
enterpri~es, 1~1C11~~1I1~ I]71I1~~1~ ~~1~1I1~~~ ~1~~~~~5~~, v~o~en-o~ed ~u~i~es~ en~erprise~ and
~istori~all~r-Ufl(~~l~l~l~l~~(~ ~]L1S1I~~~S ~Il#~1'~Tl~~~. IIl UI'~~r t4 C~~1~11~ ~~ ~ ~U~1I~~SS ~~l~~I`~I'1S~ 11I~~~r
thi~ pro~tsian, the frm r~ust be cert~~ied b~ the ~ity, the Region~l Trans~orta~ion Authority or
an~ther go~ernmental ~r~tity in the jurisdict~on ~f the home af~ice of the b~s~ness as co~p~~ing
with s~at~ a~ federal ~~an~ards for q~alifi~ati~n a~ s~ch an enterpr~se. T~e Deve~~per agr~~s to a
goa~ o~ a~ least ~5°Io of the tota~ dollar a~nnunt of all ~on~truc~an ~antracts an~ ~upp1Y
~greements be~ng paid to disadvantaged bu~~n~ss enterpt~se~, ~i~h a priority made ~~r
~isadv~nt~~e ~u~ir~es~ enter~r~se~ ~vhich are l~cal. The fol~o~ving table shal~ e~~abl~sh ~he port~an
uf a c~ntract with ~ disadvan~aged bus~ne~~ enterpri~~ which ~ha~l count t~wa~ds t~e goal:
~isadva~taged Business Ent~rprises in ~orpus ~hristi MSA 1~~°Io
~1S~L~~~~1~~~[~ B-11S1~l~SS ~~t~~~l~~S ~~S~W~1~T~ ~~ T~J~~S S~°Io
Dis~d~~n~ged Bu~ine~~ Enterpr~ses vu~~ide Texa~ ~0°l~
~ c~n~ra~~or or s~~p~ier ~ha~l be ~on~t~ered Iacated i~ the ~orpus ~~ri~ti M~A i#' it ha~
mainta~ne~ an office ~ithx~ ~h~ ~~rpus ~hxisti Ni~A for a~ le~s~ ~n~ year. Tht~ ~oa~ shal~ app1Y
ta the to~al a~nount of a11 c~n~t~uction c~ntract~ and ~upp1}~ agreer~ent~ made b~ the i~evelaper in
conr~ection ~ith t~e can~truction of the ~ro~ect, t~ot ju~t the construc~on con~racts and ~upplY
~greerr~ents rr~~de in ~onn~cti~r~ with t~e infrastructure imp~ovements li~ted on ~xhib~~ B. The
parties acknav~~edge that ~ame ~o~~tr~ction and su~p~y agreements wi~~ be c~n~al~~d b~
par~icul~r tenants of tl~e Devela~er and not under the control of the De~elaper. '~'he D~~~loper
a~grees to encoura~e ~uch third parti~s tv ado~~ a~ornparab~e goal of 25°/0 of th~ir construct~on
~us~s, but the ~i~ a~kn~wle~ge~ that De~eloper ha~ no le~a~ autharity xn cannec~ion ~rith such
third-par~y cor~tracting.
E. Fair ~hare A~reement, ~~ ~~~~1~~~~' ~~~~5 ~0 ~~It~I` ll~t0 ~ F~1~' ~~12~~'~ A~~~ri]~~t
with the ~~t~ pertaining tv the a~~~e~erner~t ~f the a~~ve ~oals, T~e Devel~per sha11 ass~st t~e
~i~y in recr~iting a pers~n ar frrn to ~~o~ide independent veri~ica~ion ~nd monitaring of
I~~V~10~7~I`' S~Ct1V1f~~S 11~ ~DI]I1~C~l~I] 1~V1#~1 ~~~ ~~IOV~ ~O~IS. ~u~h per~on or ~rm sha~l be
responsible for revie~v~ng ~he contract ~~for~aat~o~ for ~e cvntacts rr~ade b~ D~~r~loper, ~erif~in~
th~ eli~ib1~tt~ of ~he firms x~entif~e~ a~ r~e~ting the re~uirerr~ents stat~d ~bo~e, and pro~idir~g
quar~erly reports to the ~~t~ cance~n~~g the D~~elo~er's achie~ern~nt af the ~o~ls ir~ cor~ect~on
wi~ co~stru~t~on of the P~o ject. The person or frm ~nay re1~ up~n the determination made b~
~
t~e ~ity or anut~er ~o~ernmental e~~it~ as to the q~ali~i~ation of a contrac~ar ar ~uppliex a~ a
disadva~tag~d ~usiness ~nterprise under ~ection II.D. a~ov~. The cast~ of ~uch v~ri~i~atiar~ and
mo~itor~ng during ~he co~s~ru~tion perind shal~ b~ s~ub ject to ~h~ appro~~l af and pa~d by
Develaper. ~uch cost~ shall no~ ~e su~ject ~o reimbursement as adrnir~istra~~~e expen~e ~o~m Tax
Incre~~r~~s co~lected ~vithi~ the ~ross~aw~ ~ammo~s TIF.
III. P~'~~~I1~lI~~~ UII~~I'~~1~C~13~~5 0~ t~1~ ~~I'r~~S ~~~~~C~1~1~ ~~'~~~10I1 ~I]C~ AC~I"~11I115~`~~10I1 ~~ t~l~
~ross~o~v~r ~om~n~o~~ TIF ~nd Related ll~atters
A. ~re~equisite~ of TIF. Th~ D~~~lOp~i~ ri]~~ i~]1t1~t~ th~ fQrrri~#10~] Df ~h~ ~ t~X ~i~C~~~1~n~
rein~restment z~ne c~mprisir~~ ~~e ~rass~~wn ~amrrion~ TIF b~ p~tition or the prncess ma~ be
initiated as otherw~se pr~vi~ed in ~hapt~r 311. ~i~h t~e assistance of the Deve~oper, the ~ity
~ha11 prepare a preliminar~ rexn~~~tment zone financin~ plarY t~at sha~I specify the eligib~e
"proje~t cost~,,, as d~f~ned i~ ~hapt~r 3l l, v~hich sh~11 be a~ai~able tQ be fin~n~ed ~r ~ei~bur~ed
pu~suant to th~ ~nal Infrastructure Fir~ancing Agreer~e~t b~~ween th~ City and th~ Developer.
Th~ ~~t~ additional~y ~~al~ provide a 6~-da~ ~rr~tt~r~ notice vf the ~ity's i~ter~t to de~ignate t~e
~rosstown ~omman~ TIF as a tax incre~ner~t rexn~e~tment zone and of th~ hearing on ~ts
~r~pvsed ~e~ignatian to t~e oth~r ~a~ing units t~at lev~ praperty ta~~~ wi~hin th~ area af ~he
~ro~sto~vn ~~n~n~ons TIF, U~]~~SS SUC~] I1Q~1C~ ~S 1~~1V~(~ ~~ ~~~1~l~ UI~1~ ~~ ~~I'II]1~~C~ 1~~C~~I'
~hapter 311. ~uch notice ~hall c~nta~n a d~scription ~#' the propnsed ~aundari~~ of the
~ros~~ov~n ~omm~ns T~~, the ~en~att~e plans far its de~el~p~nen~, ~Il~ ~l~ ~St1rYl~t~ 4~ 1~S ~~Il~~~l
impact or~ property ~a~ue~ and tax rev~nues {both ad valarem and ~al~s}. The ~it~ sha11 provi~e
an~ addi~ivr~al informatian reques~ed b~ the ot~e~ taxing units, ar~d agree t~ n~e~t ~ith
represe~tatives of ~u~~ taxi~g units upon their req~e~t to discuss ~na~te~~ rele~ant to the pr~pased
~rosst~~vn ~o~rrions '~~, The ~ity fur~her agree~ to p~o~i~e a fvrm~l pr~sen#a~i~n ta the
ga~erning body vf each t~xing u~it that ~evies rea~ p~operty taxes ~vi~hi~ the proposed ~r~sstowr~
~o~mons T~F ~~ re~uired b~ t~e Tax ~ode and hold a pu~lic ~earing ~n its ~reation, at whic~
~he ~ity sha~l e~aluate t~e proposed ben~fit~ an~ a~taw an~ interested perso~ ~o s~eak and ~~ice
obj ect~an to the ~nclusro~ af ~r~per~y v~it~xn the proposed ~ro~sto~n ~on~mor~s T~~~ T~~ ~it~
s~al1 ~~blish r~otic~ of the public hearing at ~ea~t seve~ days' prior ta the ~earing ~n a nev~s~aper
of gen~ral cir~ulatio~ ir~ ~he ~i~. The c~sts and exp~nse~ vf ~he ~i~y ~nd t~~ I~ev~loper in
creating ~he ~rosstov~rn ~o~mons T~F sh~l1 be the firs~ costs r~i~nbur~ed frar~ ~~e Tax
In~rem~nts.
B. ~~tabl~sh~nent of ~ro~stav~n ~orr~rrion~ TIF. ~Jpon ~a~npletian of #he farega~ng
a~~ions, the ~~ty ~gre~s to a~opt an ordir~ance ~esigr~ati~g a reinve~trnent z~ne t~ be kn~~vn as
t~e Crosst~wn ~on~~nons TI~, the ~aun~arie~ vf which s~all encumpass the Project si~e together
witt~ t~a~e adjacent rua~~ay an~ easemen~ areas on v~hich off'site pub~~c infra~t~ucture
ir~prv~er~ents are plar~r~~~. The adopted ar~inan~e ~ha~l include:
1} ~~~~Criptj~~ Of th~ b~Uiid~~]~S ~~ ~~ ~rU~StO~Vri ~Ori]ri~O~S TIF wi#h
sufficier~t de~ail to ~~enti~ ~he ~e~tar~ ~vithtn the ~rosstown ~ornmon~ T~F;
2} ~ d~51~ri~ti0i] Q~ m~m~~rS tD ~~~V~ Ori th~ bO~~d ~f ~ir~~t~rS f0~" th~
~rosstowr~ ~arnrnons TY~ and th~ number of directo~s of the board;
7
3} a provis~on tha~ the ~r~sstovcrr~ ~ornn~ons T~~ v~il~ take e~fect immed~atel~
on passage a~ the ~rdi~an~e;
4} the d~~e for terrninatian of the ~rosstav~rn ~amman~ T~F;
5} a name for t~e rei~vestmer~t ~ane as pr~~ided unde~ 'Ta~ ~ode ~~cti~n
311.~~4~~}, t~e zone to be commonl~ know~r~ as the Crosst~~n ~ar~mans T~F;
6} a prnvis~on establishing a tax increment fund far t~e ~~~~stown ~om~m~ns
'T~~;
7} ~ndings tha~ the improver~ent~ ~i~hir~ the ~~o~stown ~ommon~ TIF ~ill
s~gnifcantl~ ~nhan~e ~he ~a~ue of t~e ~axab~e property v~ithin ~h~ ~rosstavv~n ~omm~n~
TIF and ~rill be ~f general ~enefit to th~ Cit~}
8~ a find~ng ~hat the ar~a me~ts the criteria for des~gna~ior~ af a reinve~tment
z~ne under Tax ~ode ~ection 311.UU5;
9~ ~indings th~t the ~ota~ ~ppxaised va~lue af t~x~~~e re~l p~operk~ in the
proposed ~ro~sto~n Common~ TIF, and in the ~it~'s exi~~in~ reinvestment zon~s, doe~
not e~ce~~ in ~he aggr~~ate ~~~en perc~nt o#' the ~otal appraised va~ue of taxable real
p~~p~i"t~ ]~ t~~ ~i~ ~~ld 1n th~ ~ndU~tr~a~ ~i~triCt~ Cr~~#~d b~ th~ ~ity; and tha~ the
proposed ~rassto~n ~o~r~naons T~~ daes not contain r~ore than ~~eer~ ~e~c~n~ of ~he
~otal apprai~e~ value of rea~ proper~ taxable b~r any coun~y ~~ independet~t schoo~ di~tri~~
that ~axe~ property within the ~ro~stnwn C~mrnons ~'IF; and
1~} auth~rization f~r the boa~d ~f dir~ctors of ~e ~ros~town ~or~mon~ ~'~F ta
e~ercise an~ of the re~uire~ powers ~ith ~espe~t ~o the administra~ion, rriana~ement v~
0~7~I'~t10~ 0~ ~~1~ ~~`4~3~0~1"1 ~OII]~]10~15 T~F 0~ ~h~ 1ri1~]~~IY]~~1~t10I10~ 1~S ~IO~J~Ct ~?~~~1.
~. Adopti~n of Plan~, 'The ~it~ add~tionall~ agrees to adopt ar~ ordina~ce app~ovin~ the
Project Pl~n ~nd Fin~nc~ng P~an {the "~lar~s"} that a~e prepar~d and app~oved b~ ~h~ ~rosstown
~ommons ~IF B~ard and that ir~~lud~ the pxoposed in~provements lrsted in Exh~bit B attac~ed
ar~d ~n~ other pro j ect costs to be fund~d b~ the Baard ei#her throu~~ a reimbu~semen~, financing
ox a grant p~agramr establ~shed ur~der ~hapter ~S~ as neces~ar~r to co~nplete the Prajec~ for its
intended purpas~~. The vrdinan~e shall ad~p~ ~indi~~s that ~he Plans ar~ feasxble an~ conform t~
the mas~er plan of the ~it~. ~E1C~i P~~I1~ S~l~~~ 11~C~UC~~ ~t ~ 1~11I~~II]UI~1 ~]E ~U~~QWIII~:
1} a map showin~ ~x~sting uses of real pr~p~rky ~it~~n ~he ~ro~~tawn
~o~mmons ~TIF a~~ an~ proposed impra~er~ents;
2} a~n~ proposed changes to ~oning ~rdinance~, the r~aste~ p~a~ of the ~ity,
~uildin~ codes o~ other rriunicipal ~rdinance~;
3} a~ist ~~' estin~a~ed n~n-pr~~ect co~~s;
4~ a s~aternent o~ t~e ~n~~~od ~'or xeloc~~ing p~r~on~ v~ho ~~~I be d~sp~aced as a
r~su1~ of i~plementat~on of ~h~ plans;
5} a detailed ~is~ of th~ e~~imated pra ject costs of the ~~a~~tawn ~ommans ~'IF,
~ncluding administ~ative ex~~nse~;
G} a list Q~ ~he kind, number and lacation ~f a~1 propos~d pub~~~ ~r~~ks ~r pt~blic
1~~~~V~~]~I]tS 1~V1t~~~1 t~~ ~~'~S~~~V~'ri ~QIY]I~I~I~S TIF;
7} ~~1 ~~DI101'Yl1C ~~~51~111~ S~UC~~;
S} #he esti~ated arri~unt of ~~nded indebted~~ss ta be incurre~;
9} #he tir~ing far incur~in~ cost~ or mon~tary ob~igatiar~~;
8
l0} the method~ for financing atl ~~tirnated pro~~ct cast~ and the exp~cted
~aur~e~ o~ r~venues, including ~~e percentage of ~ax in~rem~nt to be de~~ed f~om the
p~opert~ taxe~ of each taxing unit ~hat levies ~axe~ an rea~ ~raperty ~vit~i~ ~he ~~as~to~n
Com~nons ~'~F;
11 } the ~urrent ~ota~ apprai~ed value ~~ taxable real propert~ in th~ ~r~sstov~n
~ommo~s ~'~~;
1~} the ~stima~ed capri~red app~ai~ed valu~ uf the ~rvssto~rn ~ommons T~~
d~ring ea~h ~rear ~f its ~xist~nce; and
~~} the ~uratio~ ofthe ~r~s~to~vn ~~r~mons TIF, whic~ sha~~ nat extend ~~yond
2~ ~ears fr~rr~ t~e da#e of the open~n~ of the Pro je~t.
~. ~reatian ~f Lncal C~ver~rr~en~ ~orporation. ~'he ~ity agrees to authari2e the ~r~ati~n
of a local govern~nent corpora#ion ~;`L~C"~ ~~lC~ ~~~]~CO~~ 1t~ ~I`~1C1~5 ~Ilt~ ~?~~~~VS ~I~~ 1I11~1~~ ~~~~`~
af direc~ors, upon t~e cvn~urrence ~f the Developer ~t~~ th~ proper fi~ing of an appl~ca~ion #o
cre~t~ ~uch LC~ to a~t ~n beha~f of the ~i~ i~ t~~ adrninistration of the ~~osstown Cu~n.mons
T~F ~nd th~ ir~pler~e~t~~ian of th~ Plans. T~~ board o~ d~r~c~o~~ of the LC~ ~ha~l ~e comp~i~ed
o~ r~~r~b~rs of the Corpus ~hr~sti ~it~ ~oun~il. The ~~ty ag~ees ta ~pprove an a~reement
~etw~en the ~it~, t~e ~~u~stov~n ~ommons '~~ and the L~~ ~"Tr~-Par~ Agre~r~enf"} ~e~ting
f~rth t~e term~ under ~vhic~ ~he LC~ ~~1~ a~rr~inister the ~ro~~to~m ~~r~mans TIF and
i~ap~e~ent the Plans, Pu~~uan~ ta the Tri-Par~ Agr~ement, the ~i~y agrees to appro~re the ter~s
and cand~tions ~f a~e~e~apment ~eirr~burser~ent agree~ment en~ered into between the ~rosstow~
~vmman~ TIF, the L~~ ~nd ~he Developer, ~hich tertns a~d conditi~n~ shall be con~istent ~vit~
the Tri-Par~y Agre~ment and the Plans, and ~n~~ ~nclu~e ~eimbur~ement fo~ any project c~sts
lis~e~ the~ein su~j~ct to ~he 1i~nit~tions of this ~greement, inc~udin~ an~ reasanable TIF creation
and ad~nir~istra~on costs ad~anced by ~he ~ev~loper and appro~ed b~ the ~~ty.
E. Issuanc~ ~f Bonds. The ~it~ agr~es ta u~e ~ea~an~b~e effarts, con~i~tent ~vith then
prevail~n~ r~arket condi~i~ns, to issue, or cau~e the LG~ tn ~~~ue, bonds and notes
~"Ob~~gations"}, s~cure~ ~~ the ~"a~ ~~ncremen~s, the proceeds of ~hich will be u~ed to r~imbur~e
~~1~ D~~~~~~7~~' ~1~ ~I11~UY~~ ~~ ~~1~ ~~~~~?U~`S~~!'1~~1~ ~S ~~~~17~711~~~ 111 ~~~t~0~1 I.B. abo~e far Project
~~~ts advanced ~~ the De~eloper and authorized t~ ~e ~ai~ in accordance ~r~th t~e P~ans, on the
fo~lowing terms and condi~ion~: Th~ ~~li~~t~Qi~S WiII ~~ iS~U~d Up~i~ th~ l~~~r ~f Wh~ri t} t~]~
~i~ ha~ determ~n~d tha~ the Praject i~ ~u~s~an~iall~ ~or~plete, a~d ~} such ~~~~~a~ia~ns can be
i~sued, in one or rnore ~~ries or traunches, on commerc~a~~y reasonab~e term~ including such
re~e~rve ~equx~em~ents, co~erage reyuirement~, cred~t enhancement features, inte~e~t ~ate~ and
other feature~ cor~si~tent ~ith bon~s is~ued b~ ~imilar entities of like qualxty and credit
~orthine~~, in~luding, but not ~imited t~, o~liga~ions is~ued b~ th~ l~o~th Padre Island
~evel~pmer~~ ~orpo~atian ~ecu~e~ by tax incren~ent r~venues ~o fur~d the cos~s related ~o the
d~e~g~ng o~' and constru~ti~n ~f irnp~ovemer~t~ rela~ed to P~cl~~ry ~hanne~. Th~ ~bli~atio~s shall
~e deemed to be able to ~e is~ued on cor~m~rcially-r~~SOi~~b~~ t~rt~iS if ~~i]~riC1~l ~~Vj~D~C hire~
~~ the is~uer determir~es that such ~~1i~at~on~ can be underwritten, marl~~~ed and i~~ued,
factori~g in #he criteria ~~ate~ ir~ thi~ paragraph, S~~]~~t ~~ ~~1~ ~1I~11~~1~IlS S~~ ~~~~1 lI~ ~h~ P~~II~,
inc~uding, W1t~QU~ ~1~11~~1~I1, ~ro j ections of Tax Ir~~r~men~s an~ an~ add~~ional r~venue~
ava~~ab~e to supp~rt the pa~rraent of ~ebt ser~ice or~ su~h ~bltgatio~s.
9
F. ~reation of Public Irr~ rover~ent Di~~rict. ~p~n t~e reque~t af ~h~ Developer, ~he Cit~
a~rees to au~horize the creatior~ of a pu~lic imprav~~nent ~istric~ ~"PID"} pursuar~t t~ ~h~pter ~?2
of Texas Lnca1 ~overnrn~nt ~~de in order ta provi~e additianal revenue~ to support ~e ~a~men~
af Project ~osts, IIIC~lla1~1~, t~ the e~~ent permitt~d ~y ~aw, debt ~er~~ce ~n an~ ~bl~ga~ians
issued as provided ab~ve. Th~ creation, methad Qf assessment and administ~a~ion of the PID
shaZ~ ~e as p~vpo~ed b~ the De~elope~, subject to app~~~ra~ by the ~it~.
~. ~~li a~i~~s o~Devela er. The Develuper ~grees to assist the ~it~, i~ ~o re~u~s~~d b~r
the ~it~, ir~ t~e ~reparati~n of ar~~ dacu~e~tation neces~ary for t~e preparati~n and appr~~val of
any ~f the docur~en~s or acti~ns required ~~ the ~ity to create the ~~a~sto~v~ C~m~nans TIF, ~he
LCC, and the PID, as des~ribed abo~e, '~ie De~eloper further ~h~ll prepare or cause ~~ be
prepar~d an~ prelimi~ary architectural ~r ~nginee~ing plan~ and ~inancial da~a and p~~ j ection~
ne~e~sar~ to ~reate the ~rasstown ~onlmo~~ '~~F and adop~ the Plans. The Develaper agre~s to
praceed in govd fai~h to~ards t~e pu~chase af th~ ~~oje~t site, and, ~ub~e~t to the creation o~ the
TIF and L~~ a~d, if s~ requ~st~d by ~h~ ~eve~oper, the FID a~ provide~ abo~e and ~he term~ ~f
~h~ ~ina1 Infrastruct~re Fina~cing Agreement, ~a pr~ceed ~~th th~ de~~lopm~~t o~ ~he Project and
the imple~enta~ion af th~ P1a~s.
H. G~ad ~axth Ne~otiation~. The partie~ agree to negot~ate ir~ goo~ ~aith ~vwa~d a
l~ga~ly-~]1I1~~~~ ~1I1~~ I1'1~'~SfI"L1C~li~~ F1~t~~C1Il~ A~~~I~7~I]~ ~'t]]~Il~ ~~1~ ~1~, t~e T~F B~ard, the
LGC and the ~eveloper. The ~ity rna~ de~egate ~o th~ ~ra~stown ~~m~n~ns TIF ~oard and
I~CC any po~vers neces~at~ to ~on~ply with th~~ ~ec~ian. Th~ p~rties agre~ that the Infrastructur~
Financin~ Ag~e~ment ~ha~~ cor~tain th~ ma~erial pravisions ~et forth in t~is Agreement. ~xt~in a
reasanable period a~~~ the execution of this Agreemer~t, th~ part~es agree ta cause ~heir
respec~ve ~egal coun~el ta prepare ~ra~s of a1I do~un~~nts required far the creati~n af the
~ra~stov~n ~omm~ns ~IF, the ~nfrastructu~e ~'inancing Agreernent, anda ~o the exte~~ re~uired,
t~e L~~, the Tri-Party ~greernent, and t~e P~D, to~e~her ~ith an~ othe~ agreement pro~~d~d for
1Il t~11~ A~'~~11'1~I]~ ~~T L~~~IV~I'~ ~0 ~l~ ~~~~'Q~7~~t~ ~~I~1~~ ~~I~ t~l~]~` ~'~5~~~~1~~ ~~~~1 C~U~]5~~,
~, ~7~I~~~~~ ~~~~1510~15
A. ~I~1~~~ Bl1Sll~~S~ I~11~1~~1~~5. Th~ D~veloper agree~ ta pro~~de financial and other
~uppOrt fO~ Sri~~ll buSji~~S~ 1~1t1~tiV~S O~ t~~ ~it~ ~S pr~~i~~~ b~ ~ity p011C1~S.
B. Natices. An~ notices ~i~et~ ~ur~uar~t ~o th~s Agreement ~~~1i be i~ writing and shall
be ~iven by persa~a~ ~er~ice, by fac~i~nil~, ~]~ U~11~~~ ~~t~S M~1~ D~` ~]~ U~l1~~C~ ~~1~~5 E~~~~~5
~iail or other est~bli~hed express delt~er~ service ~such a~ ~edera~ Expr~ss} ~r b~ cer~ified ma~~,
po~tage v~r deli~er~ ~harge prep~id, ~eturr~ rec~ip~ requested, add~essed to the appropriat~ party at
the addres~ set fvrth belo~:
If ~o ~h~ ~ev~loper: ~ra~sto~vn ~ammons LL~
$~45 ~~st Franklin Road
Boise, ~dah~ 83709
ATTN: Le~a~ ~~par~ment
10
~1 a~~p~ to: ~~L 8~ As~o~iates ~.imited Farh~er~hip
~0~~ ~~.r~ltan ~'lace Blvd, S~e. 5~4
~hatt~naaga, T~nn~ssee 37~~1-~~~~
A'I"I'~: ~en~ral ~ounse~
w1 a c~p~ to: ~ohn D. Be~~
~and, Boyl~n ~ ~V'olt~r, P.~~
G 1 ~ ~V. ~Jpper Broad~a~, ~u~te ~ ~ D~
~o~p~~ ~hristi, T~~a~ 78~77
If ta the ~~ty: ~i~y vf ~arpus ~l~isti
~ ~~ 1 Leap~d ~t~~et ~784D 1 }
~, ~. Bax 9~7?
Corpu~ Christi, Texas ~84G9
ATTI~: ~~ty ~anager
~rl a cop~ to: ~~t~ o~' ~orpus C~risti
~ 2~ ~ Leopard St~eet ~78~~ 1 }
P. ~~ Box ~Z~~
~orpus Christ~, Texas 784~~
AT~N: ~it~ Attarne~
~. In~emni~ication. The Dev~l~per agre~s ~~ ~ndemnify, defend and hald ~ie ~i#~, and
its c~uncil ~nem~~rs, of~c~~s, emp~oyee~ a~nd ~gents, harn~ess frorn any acti~ns, suits, ]~en~,
c~ai~ns, damages, expe~ases, losses and lia~iltties ~including reasor~able a~torne~~' fees and
expenses} ar~isxn~ fro~n or in connec~i~n with it~ proceedin~s pursuant ta thi~ ~greement, w~ich
indemr~ity sh~ll ~ur~i~re ~~~r te~ni~ation of th~s ~Agreement.
D. Assi~. Thts Agr~er~ent may no~ be assigned by the De~e~ap~r ~ri~h~ut ~h~ priar
wri~ten ~on~en# of th~ ~tty, acting by a~d t~rraugh its ~it~ C~unc~~, ~h~~h c~~sent sha11 not be
ur~easanab~y ~ithheld o~ dela~ed~
~xe~ut~d this ~ d~~ ~f J~~y, ~007.
C~~S~TO~N ~OM.~VI~N~, ~~C,
A T~~as limt~ed ~iabi~~ty company
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Appro~ed as to ~,egal Form;
Augus~ ~, ~~~7.
~~r~ ~a~ Fi~~he~, ~~ty Attorne~
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~~~~t~~r~ ~on~rn~n~ ~nfra~~ru~t~~e ~r~~~ct Co~i~
q~-Site ~~~a~~ru~ure ~~o~reme~t~
b~1v~~berr~r ~n~a~~ R~~ci ~~provemer~ ~~7G;~
I~all~ ~oad W~de~n~ ~,~~,~
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S~la F~or~ ~~i~ T~m ~~e lr~~o~vemor~s ~~i,~DD
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~~Str~pi~:Cr~ss#o~r ~x~ss~-y Fro~e R~d. 29,~7'S
T~ ~~gnal ~t Holiy Rd~1r~~ I.~r~ Drte~a S~ 25~,~50
T~C ~f~na~ ~t.Hol~ ~c~Ma~~ S~ ~53,750
T~C Sigr~~ ~t Gr~er~woo~ R'd~la~ ~ ~~ ~9~,75D
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D~-~ite ~or Ro~du~a~~ I~ft'a~rr~#uFe I~rovem~tt~
Ro~cM~y ~a~a ar~ ~-rang ~,b~~,~8t
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C~ter~on ~or~s~~ivn ~~~o~rat~e 1,D2~,2~0
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P~~i~~~ter L~~ in Ea~er~er~s ~ to M~t~r ~,~9~,~64
P~~~~~t~ry ~~es i~ E~ser~e~ts ~R t~ Tap ~o~nt ~~,~8,~
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P~~ ~ar~p~ F~t~f~i~ 1~,~~,~~~.
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Pe.d~n H~sc~~•lif~e ~,~,~
F'~r~t~ry EIe~~ Senrice ~, ~ l3, l5~
~o€~r~a~n~1VVa~e~ Te~tur~s~i~est~~e ~;~?~;~~
~r~e~ Me~l~r~ ~r~apl~ ~~ ~,~50
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To#al ~58,~~,~04