HomeMy WebLinkAboutC2008-251 - 6/23/2008 - NA~~
C ~ June 19, 2008
~/
City of
Corpus
Christi Mr. Neill F. Amsler, III
Hogan Development Company, LP
800 N. Shoreline Drive, Suite 350 South
Corpus Christi, Texas 78401
DEVELOPMENT
SERVICES SUBJECT: Second Letter Agreement to Exchange Securities
Los Vientos at Terra Mar Sidewalks Only Deferment
~.~~xl ~.CU~]:IIY~
~'"" ~~~°°' Dear Mr. Amsler.
a,l'i,ll, cell ~~e
~~~,~~ ~s~os The terms of the Deferment Agreement Hogan Development Company,
i>nl,ll~sr,i-szr-e>.~a LP
rr,,,,,,~l,.e entered into with the City on May 5, 2005, as consideration for the
raY ac,i-xze-sl~° recording of the subdivision plat, required completion of the sidewalks
r'"~rlr,l,e and securing the construction of the sidewalks by letter of credit for the
r•;., ;ei-sxs~ux' amount of $80,988.00.
The Letter Agreement to Exchange Securities dated May 21, 2007
One81op8hop reduced the amount of the required letter of credit to $31,460.00. The
reduction of the letter of credit was based on the estimated cost of the
remaining sidewalk construction plus 10%.
r~~al,al~ll~
i~ial, rz~, ~~„
r„f,,l.,,,,,,1,,,,~ I„I,r
e,,;r,rr,ltCoavnmcrilul To date, infrastructure required by the Deferment Agreement has been
o,~i,«e„III satisfactorily completed with the exception of the following item:
«<„ A;,,,~ ,,,,~,'In,',' 1,823 linear feet (7,292 square feet) of 4-foot wide concrete
r, rr„a`r'' sidewalk
rrl'fll'I'r'Illllli'
You requested that the City allow a substitution of security required by the
Deferment Agreement. The City is agreeable to the substitution of
security upon your delivery of a letter of credit in the amount of
$23,341.69.
2008-251
06/23/08
Hogan Development Co.
Upon your delivery of your endorsed copy of this letter and the letter of
credit in the amount of $23,341.69, the City will return the Letter of Credit,
in the amount of $31,460.00 to you. By your endorsement of this letter,
you are also agreeing to the following terms:
City withholds acceptance of the public improvements,
Terms of the Deferment Agreement are still in effect, and
Developer agrees to complete the installation of 1,823 linear feet
(7,292 square feet) of 4-foot wide concrete sidewalk prior to May
31, 2009, or the City will cash the security and use it as provided in
the Deferment Agreement.
Please contact me if further clarification is required.
Sincerely,
~"""V
Juan Peral , Jr., P.E.,
Deputy Director of Dev. Services
ATTEST:
By:
Armando Chapa
City Secretary
CITY 5 CHRISTI
George K. Noe
City Manager
ACKNOWLEDGED BY:
Hogan Development Company, LP
~~~ ~~- ~-d3~o 8
Neill F. Amsler, III DATE:
Manager, Seabreeze, Ltd. Co.
Its General Partner
cc: Bob Nix, AICP, ACM of Development Services
Priscilla Garza, Finance Dept.
Ray Bridges, P.E., Urban Engineering, Victoria, Tx
File
~___
-- _ _ _ -
__ _ --
e n g i n e e r i n g
May 1, 2aaa
RE: Los Vientos at Terra Mar -Unit I
Sidewalk I3efertrtent
To Whom It May Concettt:
I have determined that as of April 17, 2008, there remains 1,823. linear feet of 4' wide sidewalk
(7,292 sq. tt.) to be constructed at Los Vientos at Terra Mar -Unit 1, The value of the remaining
sidewalk is $21,219.72 (7,292 sq. tt. x $2.91).
Ray M. Bridges, P:
Urban Engineering
RMB/dmf
S /.olS
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(361) 578-9836 Fax (361) 57b-9836 2004 iV. Commerce + Victoria, Texas 77901
May 21, 2007
Mr. Neill F. Amster, III
Hogan Development Company, LP
800 N. Shoreline Drive, Suite 350 South
Corpus Christi, Texas 78401
SUBJECT: Letter Agreement to Exchange Securities
Los Vientos at Terra Mar Sidewalks Only Deferment
Dear Mr. Amster:
The terns of the Deferment Agreement Hogan Development Company, LP
entered into with the City on May 5, 2005, as consideration for the recording of
the subdivision plat, required completion of the sidewalks and securing the
construction of the sidewalks by Letter of Credit for the amount of $80,988.00.
Our Construction Inspection office confirmed that all infrastructure required by
the Deferment Agreement has been satisfactorily completed with the exception of
the following item:
• 2,600 linear feet (10,400 square feet) of 4-foot wide concrete
sidewalk
You requested that the City allow a substitution of security required by the
Deferment Agreement. The City is agreeable to the substitution of security upon
your delivery of a letter of credit in the amount of $31,460.00.
Upon your delivery of your endorsed copy of this letter and the letter of credit in
the amount of $31,460.00, the City will return the Letter of Credit, in the amount
of $80,988.00 to you. By your endorsement of this letter, you are also agreeing
to the following terms:
City withholds acceptance of the public improvements,
Terms of the Deferment Agreement are still in effect, and
Developer agrees to complete the installation prior to May 31, 2008, or the
City will cash the security and use it as provided in the Deferment
Agreement.
Please contact me if further clarification is required.
Sincerely,
ACKNOWLEDGED BY:
Juan Perales, Jr., P.E.,
Acting Assistant Director of Dev. Services
Special Services Section
Hogan Development Company, LP
`~.~~ ~~-
IVeill F. Amsler, III
Manager, Seabreeze, Ltd. Co.
Its General Partner
cc: Debbie A Marroquin, P.E.
Priscilla Garza, Finance
Ray Bridges, P.E., Urban
File
sP~-o7
DATE:
Interim Director of Development Services
Engineering, Victoria, Tx
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DEFERMENT AGREEMENT
STATE OF TEXAS §
COUNTY OF NUECES §
This Agreement is entered into between the City of Corpus Christi, Texas ("City") and
Hogan Development Company, L. P., ("Developer"), and pertains to deferral of the
improvements required prior to filing the final plat of Los Vientos at Terra Mar Unit 7
subdivision, which was approved by Planning Commission on June 30, 2004, a copy of
the plat is attached and incorporated as Exhibit 1.
WHEREAS, the Developer is obligated under Section III, Paragraph H, Subparagraph 5,
of the Platting Ordinance to construct seventy-five percent (75%) of the required
improvements, before the final plat is endorsed by the City's Director of Engineering;
and
WHEREAS, the Developer is seeking to defer the construction of the required sidewalk
improvements, (the "Deferred Improvements"), as required by the City's Platting
Ordinances, as shown on Exhibit 2, copies of the approved engineering construction
drawings, which are attached to and incorporated into this Agreement; and
WHEREAS, the Developer is seeking to have the plat filed with the County Clerk of
Nueces County, Texas, before completion of seventy-five percent (75%) of the required
improvements as required by section III, Paragraph H, Subparagraph 5, of the Platting
Ordinance; and
WHEREAS, the Developer will deposit a letter of credit In the amount of Eighty
Thousand Nine Hundred and Eighty Eight and no/100 Dollars ($80,988.00) representing
110% of the estimated cost of constructing sidewalk improvements, as shown on the
attached cost estimate, which is attached and incorporated as Exhibit 3, with the CITY
OF CORPUS CHRISTI; and
WHEREAS, the City Attorney and Director of Finance have approved this transaction;
and
WHEREAS, the Developer has satisfied all other subdivision requirements, park
dedications, park dedication deferment agreements, and maintenance agreements and
all special covenants have been completed; and
WHEREAS, the Developer is entering into this Deferment Agreement as required by
Section V, Paragraph A, Subparagraph 3(b) of the Platting Ordinance.
NOW, THEREFORE, the City and Developer agree as follows:
The Cily agrees to waive the requirement that referred improvements be 75%
completed before the subdivision Is accepted by the City's Director of
Engineering and further agrees to allow the Developer to defer the corr~~(i_ r1°p~';'~" ~`
Deferment-Agmt-LV 1.81 k•2.doc
GI7Y Ch C:ORP'v~` ::ani$7i
the construction of public sidewalks improvements referred to in this Agreement
as the "Deferred Improvements"), as shown in Exhibit 2, to be constructed as
residential development occurs for up to two (2) years from the date of this
Deferment Agreement. However, within the overall two year deferment period,
the sidewalk improvements specific to each lot in the subdivision are required to
be constructed and inspected before a certificate of occupancy is issued for that
lot.
2. The Developer agrees to construct the Deferred Improvements, including
construction of the public sidewalks, in accordance with the City's engineering
standards in effect at the time of construction.
3. The Developer agrees to submit the sum of Eighty Thousand, Nine Hundred and
Eighty Eight and no/100 Dollars ($80,988.00) deposit, in the form of an
irrevocable letter of credit issued by Prosperity Bank, 500 N. Water Street, Suite
100, Corpus Christi, Texas 78471 for 110% of the estimated cost of constructing
the Deferred Improvements, as shown in Exhibit 2, which is attached to and
incorporated into this agreement, with the City of Corpus Christi on or before the
plat is filed with the County Clerk, and if the deposit is not made this Agreement
shalt become null and void.
4. Upon completion of the required improvements, including public sidewalks, within
two (2) years from the date this Deferment is approved, or at a later time as may
be mutually agreed upon by both parties, and upon acceptance of the
construction of public sidewalks by the City Engineer and upon compliance by
the Developer with the terms of the Deferment Agreement, the City Engineer
shall:
a. immediately release Developer from all obligations hereunder, by
mailing such Release Letter to:
Hogan Development COmDanV. L.P.
800 N. Shoreline Drive. Suite 350 South
Corpus Christi, Texas 78401
b. Return to the Developer within sixty (60) days of the completion of
construction of the sidewalks and settlement of the construction
contracts and costs, the letter of credit for the construction of
sidewalks any balance remaining of all monies received by the City
from the Developer, Including interest earned.
5. If the Deferred Improvements have not been completed within two (2) years from
the date this Agreement is approved, or if the Developer fails to deposit any
increase security as set out below, after notice to the Developer and opportunity
to cure as stated in Paragraph 7 below, the City may call the letter (s) of credit
and transfer the amounts received, including any interest earned, to the
appropriate City fund and the City will then begin completion of the construction
Deferment•Agmt-L W •81 k-2.tloc
of the required improvements, with any monies received from the Developer,
both principal and interest, remaining after completion of construction being
refunded by the City to the Bank and the Developer, as their interests may
appear. If City constructs all or any part of the Deferred Improvements, the
Developer agrees to reimburse the City for any additional cost of the Deferred
Improvements, if the sum of money and interest prove inadequate to complete
the Deferred Improvements, within thirty (30) days after City completes the
improvements and bills the Developer.
6. The City and Developer agree that if the Developer formally vacates the current
plat, with approval of the Planning Commission, prior to the deadline for the
completion of the construction of the Deferred Improvements, the letter of credit
and any money received by the City from the Developer remaining on deposit,
plus interest earned, will be released and immediately returned to the Developer.
7. If Developer defaults in any of its covenants or obligations under this Deferment
Agreement, the City Engineer will send Developer and the Project Engineer
written notice by certified mail, return receipt requested, adv(sing Developer of
the default and giving Developer thirty (30) days from date of receipt of the letter
to cure the default. If the Developer fails to cure the default after such notice and
opportunity to cure, the City Engineer will exercise the City's rights under the
letter(s) of credit and transfer any monies received and interest earned to the
appropriate fund of the City to complete the Deferred Improvements. In the
event there are any monies received by the City from the Developer, plus interest
earned, remaining after the City has completed construction of the Deferred
Improvements, the excess monies, both principal and Interest, shall be refunded
to the Bank and Developer, as their interests may appear, within sixty (60) days
of the completion of construction and settlement of construction contracts.
The Developer agrees that the City, after notice in writing to the Developer and
Project Engineer, may accelerate payment or performance or require additional
security when the City Engineer determines that the prospect of payment or
performance is questionable.
The Developer covenants to construct the Deferred Improvements, and that this
covenant shall be a covenant running with the land.
10. The City's Director of Engineering Services, at Developer's expense, shall file for
record this Deferment Agreement in the records of Nueces County.
11. No party may assign this Deferment Agreement or any rights hereunder with the
prior written approval of the other parties.
12. Unless otherwise stated herein, any notice required or permitted to be given
hereunder shall be in writing and may be given by personal delivery, by fax, or by
certified mail, and if given personally, by fax or by certified mail, shall be deemed
sufficiently given if addressed to the appropriate party at the address noted
Deferment-Agmt-LV 1-81 k-2.doc
opposite the signature of such party. Any party may, by notice to the other in
accord with the provisions of this paragraph, specify a different address or
addressee for notice purposes.
13. This Agreement shall be construed under and in accord with the laws of the State
of Texas and all obligations of the parties created hereunder are performable in
Nueces County, Texas, and all lawsuits pursuant hereto shall be brought in
Nueces County.
14. The Developer further agrees, in compliance with the City of Corpus Christi
Ordinance No. 17113, to complete, as part of this Agreement, the Disclosure of
Ownership Interests form attached hereto (Exhibit 4).
15 The City will not be required in any event to issue a certificate of occupancy for a
residence until the sidewalks and ali required utilities and other infrastructure
improvements on the lot have been completed, inspected and accepted. The
Developer shall be required to have all sidewalks and the infrastructure
improvements constructed in the subdivision within two (2) years from the date of
this agreement.
16. This Agreement shall be executed in triplicate, all original copies of which shall
be considered one instrument- When all original copies have been executed by
the City, and at least two originai copies have been executed by the Developer,
this Agreement shall become effective and binding upon and shall inure to the
benefits of the parties and their respective heirs, successors and assigns.
Deferment-Agmt-LV1-81 k-2.doc
EXECUTED in triplicate this ~~day of / ~~i~, 2005.
Hogan Development Company L.P.
800 N. Shoreline Drive, Suite 350 South
Corpus Christi, Texas 78401
By: l/~~~~"fy1~~--
eill F. Amslerr, III
Manager, Seabreeze, Ltd. Co.
Its General Partner
STATE OF TEXAS §
COUNTY OF NUECES §
This instrument was acknowledged before me on the ~ day of
2005, by Neiil F. Amsler, III, Manager, Seabreeze, Ltd. Co a Texas limite
company, acting as a General Partner of Hogan Development Company, L.P., a Texas
limited partnership, on behalf of the partnership.
~~~ ~° ~I2~-cam
NOTARY P IC, STATE OF TEXAS
PATTY L. MOORE
•~ „ Notary Public
,~^!~~ M State of Texas
y Comm. Exp. 71/29/ZDOS
Deferment-Agmt-LV1-a1 k-2.doc
CITY OF CORPUS CHRISTI ("City")
P. O. Box 9277
Corpus Christi, Texas 78469
Telephone: (361) 880-3500
Facsimile: (361) 880-3501
ATTEST:
By:
Armando Chapa,
City Secretary
THE STATE OF TEXAS §
§
By:
Ge .Noe
City anager
COUNTY OF NUECES §
This instrument was acknowledged before me on the G day of ,
2005, by George K.Noe, Ciiy Manager for the CITY OF CORPUS CHRISTI, exas
municipal corporation, on behalf of said corporation.
NOTARY PUBLIC, STATE OF TEXAS
Y~4~~t, Connb Parke
i ~~~f • My Commlugn Ezpirea
APPROVED AS TO FORM: This S day Of +~~-" r+ovemoero~t@prj,
Mary K. Fisher
City Attorney
By:
Joseph Har ey
Assistant City Attorney
~~ ~ ,.AUTMUKIC~C~
~ UOUNCII......... S1 ~ 1 ~,_
Deferment-Agmt-LV7.87 k-2.doc
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• X I~g~ LOS VIENTOS AT TERRA MAR • UNIT 1 ~~ U Fi B A N
j . e n g i n e e r i n g
lie DEFEgRED SIDEWALKe J
TVTTTT\TT ~1
L` 11111L11 !r
Exhibit C -Part 2
Los Vientos at Terra Mar Unit 1
Cost Estimate
REM
Np. DESCRIPTION ESTIMATED
QUANTITY
UNR
UNR PRICE
TOTAL PRICE
SIDEWALK IMPROVEMENTS
1. 4' Concrete Sidewalk 28,773 SF $ 2.75 E 73,825.75
Subtotal Sidewalk Improvements S 73,825.75
PROJECT COST -PART 2 E 73,625.75
PROJECT COST -PART 2 x 110% 580,988.33
EXHIBIT 3
EXHIBIT D
- - CITY OF CORPUS CHRISTI
~% DISCLOSURE OF INTERESTS
City of Corpus Christi ordinance 17112, as amended, requires all persons or firms seeking to do busingss with the City to
provide the following Information. Every question must be answered. If the question fs not applicable, answer with "NA".
FIRST NAME: HOGAN DEVELOPMENT COMPANY, L.P.
STREET:• 800 N. Shoreline Drive, Suite 350 South Tower Cl7Y; Corpus Christi, TX Zlp; 78401
FIRM IS: ^1. Corporation ^~ 2. Partnership ^3. Sole Owner ^4. Association ^5. Other
DISCLOSURE QUESTIONS
If additional space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the names of each "employee" of the Clry of Corpus Christi having an "ownership interest" constituting 3%
or more of the ownership in the above named °firm°.
Name
None
Job Title and Ciry Department (if known)
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
3. State the names of each °board member" of the Ciry of Corpus Chdsti having an "ownership interesC constiludng
3% or more of the ownership in the above named "flan°.
Name
None
Board, Commission, or Committee
4. State the names of each employee or officer of a "consultant" for the Ciry of Corpus Christi who worked on any
matter related to the subject of this contract and has an "ownership interest" constituting 35 or more oT the
ownership in the above named "firm".
Name
CERTIFICATE
Consultant
I certify that all information provided is true and correct as of the date of this statement, that I have not knowingly withheld
disclosure of any Information requested; and that supplemental statements will be promptly submitted to the City of
Corpus Christi, Texas as changes occur.
Certifying Person: Neill F. Amster, III Title: Manager of Gen. Partner
(Type or Print) /y ~/
Signature of Certifying Person: //~'~~ ~ Date: / ~ ~Y ~~
EXHIBIT 4
Memo
To: George Nce, City Manager
FROM: Charles l3aish, III, P.E., Senior Engineer, Development Services
CC: Juan Perales, Jr., P.E., Deputy Director of Development Services
Date: July 15, 2008
Re: Letter Agreement to Exchange Securities, Los Vientos at Terra Mar
Request the City Manager endorse the Letter Agreement to Exchange Securities (attached), which
authorizes Hogan Development, LP, owner and Developer of Los Vientos at Terra Mar, to exchange the
letter of credit held by the City for a letter of credit of lesser value. Staff determined that the amount of the
letter of credit may be reduced to the amount of sidewalk construction remaining plus 10%.
On May 10, 2005, Council approved a Deferment Agreement between the City and Mr. Neill Amsler of
Hogan Homes, LP, owner and Developer of Los Vientos at Terra Mar. The Developer chose to defer the
construction of the subdivision sidewalks in order to keep them from becoming damaged when concrete
trucks backed over the curb to pour the slab on grade foundations for the homes.
The terms of the Deferment Agreement defer construction of sidewalk public improvements required as a
condition of platting the property. The Developer secured 110% of the cost of constructing the deferred
public improvements with a letter of credit in the amount of $80,988.00.
On May 21, 2007, staff approved a Letter Agreement to Exchange Securities between the City and
Hogan Homes, LP. Under the terms of the Letter Agreement, staff retuned the original letter of credit in
the amount of $80,988.00 to Hogan Homes, LP in exchange for a letter of credit in the amount of
$31,460.00. The new letter of credit was equal to the construction cost of the sidewalk remaining to be
completed plus 10%.
On June 20, 2008, Hogan Homes, LP submitted a second Letter Agreement to Exchange Securities.
The terms of the Letter Agreement replace the letter of credit in the amount of $31,460.00 with a letter of
credit in the amount of $23,341.69. The new letter of credit is equal to the construction cost of the
sidewalk remaining to be completed plus 10%.
The Developer is building the sidewalk on a house by house basis. 1,823 linear feet of 4-foot wide
concrete sidewalk has not been constructed. Assuming 50-foot wide lots, this is equivalent to
approximately 36 lots still needing sidewalk. The Developer expects all sidewalk construction to be
completed by May 2009.
Attachments:
Letter Agreement to Reduce Security June 2008
Letter Agreement to Reduce Security May 2007
Deferment Agreement May 2005
1of1