Freeport NIP(2.6)-CS 981222 P.O. BO0t 47~
2.~ PARKWAY' BLVD.
~I'X 7~19
~AX No. (972)
ENGINEERING DEPARTMENT
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DRAFT
December 22, 1998
STATE OF TEXAS
COUNTY OF DALLAS
ECONOMIC DEVELOPMENT
INCENTIVE AGREEMENT
This Economic Development Incentive Agreement ("AGREEMENT") is made by and
between the City of Coppell, Texas ("CITY"), and Emerson Partners, Inc. ("OWNER"), acting
by and through their respective authorized officers.
WITNESSETH:
WHEREAS, the enhancement of the local economy is in the best interest of the citizens
of the CITY; and
WHEREAS, economic development incentives encourage businesses and companies to
locate or expand operations in the CITY; and
WHEREAS, the CITY has adopted programs for promoting economic development
incentives; and
WHEREAS, the CITY is authorized pursuant to Section 380, Texas Local Government
Code to provide economic development incentives; and
WHEREAS, OWNER owns property in the Freeport North Addition ( ) acres of land
located in Coppell, Texas described in Exhibit "A" attached hereto (the "PREMISES"); and.
WHEREAS, OWNER intends to construct on the PREMISES four office buildings
and/or warehouses (the "IMPROVEMENTS"); and
WHEREAS, OWNER has advised the CITY that a contributing factor that would
induce OWNER to construct the IMPROVEMENTS would be an agreement by the CITY to
provide an economic development incentive to OWNER to defray a portion of the cost to be
incurred as a consequence of developing the PREMISES and locating within the CITY; and
WHEREAS, the CITY has found and determined that making a conditional economic
development incentive grant to OWNER in accordance with this AGREEMENT will further
the objectives of the CITY and will benefit the CITY and its inhabitants.
Economic Development Incentive Agreement - Page 1 ss22695
NOW THEREFORE, in consideration of the foregoing, and on the terms and conditions
hereinafter set forth and for other valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:
ARTICLE I
Term
1. This AGREEMENT shall commence on the date on which all parties hereto have
executed this AGREEMENT and continue until the satisfaction of Paragraphs 2 and 3 by the
parties.
ARTICLE II
Economic Development Grant
2. Subject to OWNER's continued satisfaction of all the terms and conditions of
this AGREEMENT, CITY agrees to provide the following economic development grant:
Ao
CITY agrees to provide OWNER a credit against or otherwise waive current and
future roadway impact fees to be assessed against the PREMISES as a result of
the development described herein, in an mount equal to the roadway impact fees
that will be due and payable upon development of the PREMISES, not to exceed
Thirty Six Thousand Six Hundred Eighty Five Dollars and Six Cents ($36,685.06)
for the PREMISES. The parties agree that the CITY shall not be required to pay
a refund in cash or cash equivalent for any portion of such credit or waiver to
OWNER or any other party.
Conditions to Economic Development Grant
3. OWNER shall construct or cause to be constructed refinishing of the existing
bridge rails for the bridge over Cottonwood Branch. Refinishing shall consist of removing the
current paint finish and applying paint acceptable to the City of Coppell. OWNER shall also
beautify the existing medians in the vicinity of the PREMISE. Beautification shall consist of
the placement of topsoil behind the median curbs, regrading and hydromulching or sodding the
area. Invoices shall be provided to the CITY upon request. In no event will the CITY be
financial responsible for costs that exceed the amount of the credit for the roadway impact fees.
Economic Development Incentive Agreement - Page 2 ss22695
ARTICLE III
Termination
4. In the event OWNER fails to meet any of the conditions of this AGREEMENT,
then CITY shall give OWNER written notice of such failure, and if OWNER has not cured
such failure within thirty (30) days after receipt of such written notice, this AGREEMENT
subject to the provisions of Paragraph 8 below, may be terminated by the CITY without further
notice.
ARTICLE IV
Recapture of Grant
5. In the event OWNER fails in the performance of any of the following conditions:
(i) completion of the IMPROVEMENTS in accordance with this AGREEMENT or in
accordance with applicable State or local laws, code or regulations; (ii) has any delinquent ad
valorem or State sales taxes owed to the CITY (provided OWNER retains the right to timely and
properly protest such taxes or assessment); (iii) upon the occurrence of an "Event of Bankruptcy or
Insolvency"; or (iv) breaches any of the terms and conditions of this AGREEMENT, then
OWNER, after the expiration of the notice and cure periods provided above, shall be in default of
this AGREEMENT. For purposes hereof, an "Event of Bankruptcy or Insolvency" shall mean the
dissolution or termination of OWNER's existence, insolvency, appointment of receiver for any
part of OWNER's property and such appointment is not terminated within sixty (60) days after
such appointment is initially made, any general assignment for the benefit of creditors or the
commencement of any proceedings under any bankruptcy or insolvency laws by or against
OWNER and such proceedings are not dismissed within sixty (60) days after the filing thereof. As
liquidated damages in the event of such default, OWNER shall, within thirty (30) days after
demand, pay to the CITY an amount equal to the total economic development incentive grant
provided by the CITY consisting of the total dollar amount of credit/waiver of roadway impact fees
theretofore provided for the PREMISES. The parties acknowledge that actual damages in the
event of default would be speculative and difficult to determine.
ARTICLE V
MISCELLANEOUS
No Conflicts of Interest
6. The CITY represents and warrants that the PREMISES or any adjacent property
upon which the IMPROVEMENTS is to be located is not owned by any officer or employee of
the CITY.
Economic Development Incentive Agreement - Page 3 ss22695
Binding Agreement
7. The terms and conditions of this AGREEMENT are binding upon the successors
and assigns of all parties hereto. This AGREEMENT may not be assigned without the express
written consent of CITY.
Limitation on Liability
8. It is understood and agreed between the parties that OWNER, in the development
of the IMPROVEMENTS and satisfying the conditions of this AGREEMENT, is acting
independently, and the CITY assumes no responsibilities or liabilities to third parties in connection
with these actions. OWNER agrees to indemnify and hold harmless the CITY fi.om ail such
claims, suits, and causes of actions, liabilities and expenses, including reasonable attomey's fees, of
any nature whatsoever arising out of its respective obligations (but not the obligations of the CITY
or other party) under this AGREEMENT.
9. It is acknowledged and agreed by the parties that the terms hereof are not intended
to and shail not be deemed to create any partnership or joint venture among the parties. The CITY,
past, present and future officers, elected officials, employees and agents of the CITY do not assume
any responsibilities or liabilities to any third party in connection with the development of the
IMPROVEMENTS or the design, construction or operation of the IMPROVEMENTS. In
addition, OWNER acknowledges and agrees that there shail be no recourse to any of the aforesaid
parties, who shail incur no liability in respect of any claims based upon or relating to this
AGREEMENT.
Authorization
1 0. This AGREEMENT was authorized by City Council, authorizing the undersigned
to execute this AGREEMENT on behaif of the CITY.
11. OWNER represents that it has full capacity and authority to grant ail fights and
assume all obligations that it has granted and assumed under this AGREEMENT.
Notice
12. All notices required by this AGREEMENT shail be addressed to the following, or
other such party or address as either party designates in writing, by certified mail, postage prepaid
or by hand-delivery:
Economic Development Incentive Agreement - Page 4 ss22695
If intended for OWNER, to:
Attn:
Emerson Partners, Inc.
(insert address)
If intended for CITY, to:
City of Coppell, Texas
Attn: City Manager
255 Parkway Boulevard
P.O. Box 478
Coppell, Texas 75019
Entire Agreement
13. This AGREEMENT is the entire AGREEMENT between the parties with respect
to the subject matter covered in this AGREEMENT other than the Tax Abatement Agreement.
There is no other collateral oral or written AGREEMENT between the parties that in any manner
relates to the subject matter of this AGREEMENT, except as provided in the Exhibits attached
hereto.
Governing Law
14. The validity of the AGREEMENT and any of its terms and provisions, as well as
the fights and duties of the parties, shall be governed by the laws of the State of Texas; and venue
for any action concerning this AGREEMENT shall be in the State District Court of Dallas County,
Texas.
Amendment
15.
parties.
This AGREEMENT may be amended by the mutual written agreement of the
Legal Construction
16. In the event any one or more of the provisions contained in the AGREEMENT
shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not affect other provisions, and the AGREEMENT shall be
construed as if such invalid, illegal, or unenforceable provision had never been contained in it.
Economic Development Incentive Agreement - Page 5 ss22695
17. The provisions of this AGREEMENT are hereby declared covenants running
with the PREMISES and are fully binding on all successors, heirs, and assigns of OWNER who
acquires any right, title, or interest in or to the PREMISES or any part thereof. Any person who
acquires any right, title, or interest in or to the PREMISES, or any part hereof, thereby agrees
and covenants to abide by and fully perform the provisions of this AGREEMENT with respect
to the right, title or interest in such PREMISES.
RECORDATION OF AGREEMENT
18. A certified copy of this AGREEMENT shall be recorded in the Deed Records of
Dallas County, Texas.
RECITALS
19. The recitals to this AGREEMENT are incorporated herein.
EXECUTED on this day of ,1998.
CITY OF COPPELL, TEXAS
ATTEST:
By:
CANDY SHEEHAN, MAYOR
By:
KATHLEEN ROACH, CITY SECRETARY
APPROVED AS TO FORM:
By:
PETER G. SMITH, CITY ATTORNEY
EXECUTED in duplicate originals this the __ day of ,1998.
EMERSON PARTNERS, INC.
Economic Development Incentive Agreement - Page 6 ss2269s
By:
NalTle~
Title:
Economic Development Incentive Agreement - Page 7 ss22695
CITY'S ACKNOWLEDGMENT
STATE OF TEXAS §
COUNTY OF DALLAS §
This instrument was acknowledged before me on the ~ day of ,
19 , by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
My Commission Expires:
Notary Public, State of Texas
Economic Development Incentive Agreement - Page 8 ss22695
OWNER'S ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF DALLAS
This instrument was acknowledged before me on the. day of
19__, by of Emerson Partners, Inc., on behalf of said corporation.
Notary Public, State of Texas
My Commission expires:
Economic Development Incentive Agreement - Page 9 ss22605
EXHIBIT "A"
DESCRIPTION OF PREMISES
DEVELOPMENT FEE TABLE
Project: Freeport North Addition, Replat of Lot 1, Block 3
Date: 12/17/98
TOTAL AMOUNT DUE
FEES DUE PRIOR TO
COUNCIL
APPROVAL
Water Impact Fee $8,325.00 $8,325.00
(100% due prior to Council Approval)
WaterA~.Inspection Fee $200.00
t~0~ due at Issuance of Water Meter)
Water Meter¥'~'~.pmestic) $192.15
(10o%
du[~l/~ance of Water Meter)
Water Meter Fee (Irrigation/Fi~!~ine)~..L_ $5,956.65
(100% due at Issuance bf/~atsr Meter)
Water Meter Deposit (Domestic) ~1/, $35.00
(100% due at Issuance of Water Met~V _
Irrigation/Fireline Meter Deposit L ~[/1 $90.00
(100% due at Issuance of Water Meter)
Wastewater Impact Fee $3,600.00 $3,600.00
(100% due prior to Council Approval)
Wastewater Tap Inspection Fee $50.00
(100% due at Issuance of Building Permit)
Utility Final Inspection Fee $50.00
(100% due at Issuance of Building Permit)
Park Fee $0.00 N/A
(100% due prior to Council Approval)
Roadway Impact Fee $36,685.06 $36,685.06
(100% due prior to Council Approval)
Street Light Fee Information not
(100% due prior to Acceptance of Project available at this time
Street Sign Fee Information not
(100 % due prior to Acceptance of Project available at this time
Construction Inspection Fee Need submittal of
development contracts
TOTAL $55,183.86
TOTAL AMOUNT DUE PRIOR TO COUNCIL APPROVAL $48,610.06
DEVELOPMENT FEE WORKSHEET
PROJECT: Freeport North Addition, Replat of Lot 1, Block 3
DATE: 12/17/98
Water Impact Fee:
Domestic Meter(s):
Irrigation Meter(s):
Fireline Meter(s):
1 - 2 inch = 8 ESU's
1 - 2 inch = 8 ESU's
= ESU's
2 - 8 inch = 2.5 ESU's
Total #: 18.5 ESU's @ $450.00 ea.
(100% due prior to Council approval of the final plat)
Water Tap Inspection Fee:
Total #: 4 Connections @ $50.00 ea.
(Single family due prior to issuance of building permit)
(All other developments due prior to issuance of meter)
Domestic Water Meter Fe~'~.,
Total #: '"~Z'~ ~. Domestic Meter(s) @ $192.15
(Si~ngl~/,~d,ue prior to issuance of building pe'~'~-
(All other Crd~~L~S due prior to issuance of meter)
Irrigation/Fireline Water Meter Fee:
Total #:
Total #:
Total #:
Domestic Water Meter Deposit Fee:
Total #: 1 Meter(s) @ $35.00 ea.
(100% due prior to issuance of water meters)
1 Irrigation Meter(s) ~')~ t-~ $192.15
0 Additional Irrigation Meter~j~ ,, ~-
2 Fireline. Meter(s). @ t~/~.~.)~$~'5.
(100% due prior to ~ssuance of water meters) ~
Irrigation/Fire Meter Deposit Fee:
Total #: 3 Meter(s) @ $30.00 ea.
(100% due prior to issuance of water meters)
Wastewater Impact Fee:
Total Domestic Meters ESU's:
@ $450.00 ea.
Wastewater Tap Inspection Fee:
Total #: 1 Connections @ $50.00 ea.
(100% due prior to issuance of building permit)
Utility Final Inspection Fee (All developments):
Total #: 1 Lots @ $50.00 ea.
(100% due prior to issuance of building permit)
$8,325.00
$200.00
$192.15
$192.15
$0.00
$5,764.50
$35.00
$90.00
$3,600.00
$50.00
$50.00
Page 3
DEVELOPMENT FEE WORKSHEET
Park Fee (For Residential Developments Only):
* Preliminary plat approved prior to June 23, 1992:
N/A
N/A
Single-family @ $150.00 / Lot
Multi-family @ $75.00 / Unit
(50% paid prior to Council approval of final plat)
(50% paid at issuance of building permit)
* Preliminary plat approved after June 23, 1992:
N/A Single-family @ $350.00 / Lot
N/A Multi-family @ $350.00 / Unit
(5Jil~l~aid prior to Council approval of final plat)
(50%3J[~ at issuance of building permit)
* Preliminary plat approved aft-~tflrr.~ober 26, 1993:
N/A Single-family @ $128~00 / Lot
N/A Multi-family @ $1285.00 /
(100% paid prior to Council app~/e~l ~,,final
plat)
Roadway Impact Fee:
(See attached fee calculations)
Street Lightiag Fees:
Assessed for lighting in the City's right-of-way.
This fee cannot be assessed until after T.U. Electric submits
the lighting plan for the proposed development.
Once the plans are submitted, $292.60 per light will be assessed.
(100% due prior to final acceptance of development)
N/A
N/A
N/A
N/A
N/A
N/A
$36,685.06
Information not
available at this time
Street Sign Fees:
Assessed for signage in the City's right-of-way.
(See attached fee calculations if applicable)
Information not
available at this time
Construction Inspection Fees:
A copy of the development contract must be submitted for assessment.
The contracts should indicate the cost to construct the improvements
that are inspected by the Engineering Department.
(2% of development cost required for private improvements)
(4% of development cost required for public improvements)
Need submittal of
development contracts
Page 4
ROADWAY IMPACT FEE CALCULATIONS
PROJECT:
DATE:
Freeport North Addition, Replat of Lot 1, Block 3
12/17/98
ROADWAY IMPACT FEE:
Service Area *
Category ** Office
Land Use ** General Office Building
Building Size (Sq. Ft.) 122,590 (a)
Development Units ** 122.59
Vehicle Miles per Development Unit ** 3.99
Fee per Vehicle Mile *** ~ $300
Roadway Impact Fee due = ~t~op. ment Units) x
Miles per Developme~t~j~(Fee per Vehicle Mile) = $146,740.23
(Vehicle
¥'q~),, * (Figure 2- Roadway Impact Fee Study)
· * ~(~a_ble 3 - Roadway Impact Fee Study)
· ** '(~ule 2, Page 3 - Roadway Impact Fee Study)
75 % Credit as per approvt~~Manager $110,055.17
(a) Total square footage of 4 buildings = 122,590
Building 1 -- 34,800 sq. ft.
Building 2 = 35,600 sq. ft.
Building 3 = 25,600 sq. ft.
Building 4 -- 26,590 sq. ft.