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Termination of Development Contract —copy attached 12/21/00 ) R
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ORDINANCE NO of MDD' ,--5 %1
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING A DEVELOPMENT
AGREEMENT BETWEEN THE CITY OF DENTON AND LOCUST/288 PARTNERS, LTD
AND NORTH DENTON PARTNERS, LTD, RELATING TO THE DEVELOPMENT OF AN
APPROXIMATE 20 ACRE TRACT OR PARCEL OF LAND BEING A PART OF LOT 2,
BLOCK A OF THE SANDLIN ADDITION, AN ADDITION TO THE CITY OF DENTON,
FOR USE AS A REGIONAL DETENTION POND, AND RELATED DEVELOPMENT
ISSUES, AUTHORIZING THE EXPENDITURE OF FUNDS THEREFORE, AND
PROVIDING AN EFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY ORDAINS
SECTION 1 The City Manager is hereby authorized to execute a Development
Agreement between the City and Locust/288 Partners, Ltd and North Denton Partners, Ltd, in
substantially the form of the Development Agreement which is attached hereto and made a part
of this ordinance for all purposes, relating to the development of approximately 20 acres of land
for use as a regional detention pond and related development issues
SECTION 2 The City Manager is authorized to make the expenditures as set forth in the
attached Development Agreement
SECTION 3 This ordinance shall become effective immediately upon its passage and
approval
PASSED AND APPROVED this the day of , 2000
ATTEST
JENNIFER WALTERS, CITY SECRETARY
7
/ I
M
EULINE BROCK, MAYOR
DEVELOPMENT AGREEMENT
This Development Agreement is dated to be effective the 41" day of October, 2000 (the
"Effective Date"), and is by and between the City of Denton, Texas, a Texas municipal corporation
(the "City"), North Denton Partners, Ltd, a Texas limited partnership ("North Denton Partners"),
and Locust/288 Partners, Ltd , a Texas limited partnership ("Locust/288 Partners"), to wit
WITNESSETH
WHEREAS, North Denton Partners owns certain real property located with the city limits
of the City, including that certain 30 191-acre tract, being the same lands described as Tract Two in
that certain Special Warranty Deed with Vendor's Lien, dated January 21, 1988, from SLI-GP, Inc ,
to North Denton Partners, Ltd, recorded in Volume 4264, Page 1384, Deed Records, Denton
County, Texas (the "North Denton Partners Tract"), and
WHEREAS, Locust/288 Partners owns certain real property located in the city limits of the
City, being the same lands described in that certain Special Warranty Deed with Vendor's Lien,
dated March 16, 1999, from KDRC II Limited Partnership to Locust/288 Partners, Ltd, recorded
in Volume 4299, Page 805, Deed Records, Denton County, Texas (the "Locust/288 Partners Tract"),
and
WHEREAS, the North Denton Partners Tract and the Locust/288 Partners Tract are subject
to that certain Planned Development zoning district, entitled "PD 120", as enacted by Ordinance No
86-173, which was amended in October of 1998 by Ordinance No 98-324 (which amended the
concept plan), and
WHEREAS, Locust/288 Partners has submitted a Preliminary Plat covering a portion of the
Locust/288 Partners Tract (the "Preliminary Plat"), which was approved by the Planning and Zoning
Commission on April 12, 2000, and
WHEREAS, North Denton Partners, Ltd , as seller, and the City, as purchaser, have entered
into that certain Contract of Sale (the "Detention Pond Contract"), of even date herewith, covering
20 acres, more or less, out of the North Denton Partners Tract (the "Detention Pond Property"),
under which the City has the right to purchase the Detention Pond Property subject to the terms and
conditions of the Detention Pond Contract, and
WHEREAS, pursuant to the Preliminary Plat, the parties hereto have reached certain
agreements relating to the development of the Locust/288 Partners Tract and the North Denton
Partners Tract (both Tracts being collectively referred to herein as the "Property") as set forth below
and desire to set forth the terms of those agreements in this Development Agreement (this
"Agreement"),
NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth
DEVELOPMENT AGREEMENT PAGE I
herein, the receipt and sufficiency of which being acknowledged by all parties hereto, the City, North
Denton Partners, and Locust/288 Partners do hereby agree as follows
ARTICLE I
Construction of Regional Detention Pond
101 Recitals The City and Locust/288 Partners stipulate that the recitals set forth in the
preamble hereto, as well as the following recitals, are true and correct
(a) the latter has submitted to the City the Preliminary Plat covering all or part
of the Locust/288 Partners Tract,
(b) among other things, the Preliminary Plat provides for development of the
lands covered thereby into a single-family, residential subdivision called
"North Pointe" to be developed in phases (the "Subdivision"),
(c) to manage the increased storm runoff which may result from construction of
the subdivision, the City has indicated its preference that a regional detention
pond be constructed which would serve not only the Locust/288 Partners
Tract, but other lands as well, rather than development -specific detention
ponds constructed to serve only the lands covered by the various phases of
the Subdivision as reflected in the Preliminary Plat,
(d) the Detention Pond Contract is intended to give the City an opportunity to
acquire the land necessary for construction of such a regional detention pond,
(e) if the Detention Pond Contract is terminated pursuant to the terms thereof, the
City intends to institute condemnation proceedings to acquire all or part of
the Detention Pond Property under its rights of eminent domain, and
(f) the parties anticipate the probability that the City will not be able to complete
acquisition of the Detention Pond Property and construction of the regional
detention pond prior to completion of the first phase of the Subdivision
102 Obligation to Construct Subject to Locust/288 Partners' rights set forth in Article
II, below (the "Retained Rights"), upon (i) the City's closing of the purchase of the
Detention Pond Property pursuant to the Detention Pond Contract, or (ii) the date of
a final judgment awarding all or part of the Detention Pond Property to the City
pursuant to the City's institution of condemnation proceedings therefor, the City shall
commence and diligently pursue design and construction of aregional detention pond
in size, configuration, and location sufficient to accommodate storm water runoff
from the Locust/288 Partners Tract and North Denton Partners Tract, and such other
DEVFI OPMENT AGREEMENT PAGE
lands as the City may reasonably determine should also be served thereby
103 Pro-Rata Contribution The provisions of this Section 103 are subject to the waiver
provisions set forth in Section 2 03, below Prior to the recordation of the final plat
for each phase of the Subdivision development covered by the Preliminary Plat (and
as a condition to the recordation of same), Locust/288 Partners agrees to pay the City
the sum of (i) $935 00 per acre (or portion thereof) subject to such final plat, and (it)
an additional amount serving as an escalator from the date construction of the
regional detention pond is completed, such amount being equal to the product of the
amount set forth in (i), above, multiplied by 06/365, multiplied by the number of
days elapsed from the date construction of the regional detention pond is completed
to the date of payment (the 'Pro-Rata Contribution") This amount will serve as
Locust/288 Partners' pro-rata contribution towards the cost ofthe City's construction
of the regional detention pond
104 Indemnity
(a) If (i) Locust/288 Partners does not exercise the Retained Rights or (u)
Locust/288 Partners exercises the Retained Rights but the City subsequently
commences construction of or constructs the regional detention pond on all
or part of the North Denton Partners Tract, the City agrees to indemnify,
defend, and hold Locust/288 Partners, its officers, directors, partners,
employees, successors, and assigns harmless from and against all claims,
causes of action, fines, damages, costs, attorneys' fees, demands, settlements,
and threats of litigation suffered or incurred by, or asserted against,
Locust/288 Partners, its successors and assigns, relating to, directly or
indirectly, the City's construction or use of, or failure to complete
construction of, the regional detention pond and its operation
(b) If Locust/288 Partners exercises the Retained Rights, it agrees to indemnify,
defend, and hold the City, its officers and employees harmless from and
against all claims, causes of action, fines, damages, costs, attorneys' fees,
demands, settlements, and threats of litigation suffered or incurred by, or
asserted against, the City, its officers, employees, successors, and assigns,
relating to, directly or indirectly, Locust/288 Partners' exercise of the
Retained Rights or construction or use of the development -specific detention
pond constructed by Locust/288 Partners pursuant to its exercise of the
Retained Rights, as provided in Article II, below
DEVELOPMENT AGREEMENT PAGE
ARTICLE II
Retained Rights
201 Right of Entry to Construct Development -Specific Detention Pond
(a) Notwithstanding any other provision of this Agreement, if Locust/288
Partners determines in its sole discretion that (1) construction of any phase of
the Subdivision will be completed prior to the City's completion of
construction of the regional detention pond and (Li) construction and/or
enlargement and modification of a development -specific detention pond will
be necessary to service the storm water runoff needs of the phase of the
Subdivision being completed, Locust/288 Partners shall have the right from
time to time (the "Retained Rights"), exercised by notice to either the City or
North Denton Partners (whichever may then own the Detention Pond
Property, as the case may be), to enter upon the Detention Pond Property for
the purposes set forth in Section 2 02, below
(b) At any time and from time to time following the City's acquisition of the
Detention Pond Property (either through closing under the Detention Pond
Contract or by way of condemnation) and upon Locust/288 Partners' written
request, the City agrees to grant and convey to Locust/288 Partners a
nonexclusive easement over and across up to four (4) contiguous acres out of
the Detention Pond Property for the following purposes
(1) for constructing and/or enlarging and modifying a development -
specific detention pond to service the storm water runoff needs of any
phase or phases of the Subdivision, pursuant to the construction rights
set forth in Section 2 02, below,
(2) for ingress and egress in connection with the construction and/or
enlargement and modification of the development -specific detention
pond,and
(3) for discharge of storm water onto, over, and across the Detention
Pond Property
This easement shall terminate upon the City's completion of construction of
the regional detention pond The instrument granting and conveying the
easement shall be in the form to which the City and Locust/288 Partners shall
reasonably agree
(c) At any time and from time to time prior to the City's acquisition of the
DEVELOPMENT AGREEMENT PAGE 4
Detention Pond Property (either through closing under the Detention Pond
Contract or by way of condemnation) and upon Locust/288 Partners' written
request, North Denton Partners agrees to grant and convey to Locust/288
Partners a nonexclusive easement over and across up to four (4) contiguous
acres out of the Detention Pond Property for the following purposes
(1) for constructing and/or enlarging and modifying adevelopment-
specific detentionpond to service the storm water runoff needs of any
phase or phases of the Subdivision, pursuant to the construction rights
set forth in Section 2 02, below,
(2) for ingress and egress in connection with the construction and/or
enlargement and modification of the development -specific detention
pond, and
(3) for discharge of storm water onto, over, and across the Detention
Pond Property
This easement shall terminate upon the City's acquisition of the Detention
Pond Property The instrument granting and conveying the easement shall
be in the form to which North Denton Partners and Locust/288 Partners shall
reasonably agree
202 Construction of Development -Specific Detention Pond If Locust/288 Partners
exercises the Retained Rights, it shall have (and such Retained Rights shall include)
the right to commence construction of a development -specific detention pond to
service the storm water runoff needs of the lands covered by the first phase of the
Subdivision, as well as the right to upgrade the outfall, excavate, and otherwise
enlarge and/or modify the development -specific detention pond to service the storm
water runoff needs of the lands covered by subsequent phases of the Subdivision
Prior to commencement of construction, Locust/288 Partners shall submit
engineering plans for the development -specific detention pond's construction and/or
enlargement and modification to the City for review The development -specific
detention pond shall be designed to reasonably facilitate its incorporation into the
design of the regional detention pond by the City The City shall approve such plans
unless the City's engineering staff reasonably has legitimate engineering reasons for
revising the plans Such legitimate reasons can only relate to the design's ability to
accommodate storm water runoff from the lands covered by the Preliminary Plat, and
such legitimate reasons cannot include concerns relating to lands other than those
covered by the Preliminary Plat or policy concerns about favoring regional detention
ponds over development -specific detention ponds, except for the requirement that it
be designed to reasonably facilitate its incorporation into the design of the regional
detention pond In other words, and except for the design integration requirement,
DEVELOPMENT AGREEMENT PAGE 5
if under sound engineering practices the design for construction and/or enlargement
and modification of the development -specific detention pond would serve the storm
water runoff needs of the phase of the Subdivision at issue, the City shall approve
such plans and shall take all such other actions as are required by its procedures to
approve construction and/or enlargement and modification pursuant thereto
Following the City's acquisition of the Detention Pond Property, all construction
contracts shall require thatthe contractor provide comprehensive general liability and
worker's compensation coverage in the type and manner required by the City's
general conditions for public works construction, which shall include without
limitation the City being named as an additional insured Performance and payment
bonds shall also be required in the manner required for City public works contracts
203 Return of Pro-Rata Contnbution If the Retained Rights are exercised by Locust/288
Partners in connection with a particular phase of the Subdivision and it has made a
Pro-Rata Contribution to the City for that particular phase of the Subdivision, the
City shall refund the Pro-Rata Contribution (plus interest at six percent [6%] per
annum from the date of the payment of the Pro-Rata Contribution to the date of the
City's repayment under this Section 2 03) to Locust/288 Partners within ten (10) days
of completion of the construction and/or enlargement and modification of the
development specific detention pond and acceptance thereof by the City If
Locust/288 Partners has not made a Pro-Rata Contribution to the City for a particular
phase of the Subdivision, then within ten (10) days of completion of construction
and/or enlargement and modification of the development -specific pond and
acceptance thereof by the City, the City shall waive any requirement that a Pro-Rata
Contribution be made to the City by Locust/288 Partners for that particular phase of
the Subdivision
204 City's Acceptance of Pond Acceptance of construction and/or enlargement and
modification of the development -specific detention pond shall be made by the City
if such construction and/or enlargement and modification meets the specifications
provided for in the engineering plans for same which have been approved by the
City Such acceptance shall not be unreasonably withheld or delayed
205 Sanitary Sewer Line Attached hereto and made a part hereof as Exhibit "A" is a
drawing showing the location of an existing City sanitary sewer line that traverses
the Detention Pond Property The development of the Subdivision shown on the
Preliminary Plat located to the west of the Detention Pond Property (the "West
Area") contemplates, and the City will permit, that the segment of the existing
sanitary sewer line shown on Exhibit "A" that traverses the Detention Pond Property
will be utilized for all phases in the West Area Such segment of the existing sanitary
sewer line is not currently being used However, when the development of the
Subdivision shown on the Preliminary Plat located to the north of the Detention Pond
Property receives final plat approval, the segment of the existing sanitary sewer line
DEVELOPMENT AGREEMENT PAGE 6
shown on Exhibit "A" shall be vacated upon the completion of construction of a new
sanitary sewer line as shown on Exhibit "A" Exhibit "A" shows the portions of the
new sanitary line to be constructed by Locust/288 Partners, or its successors or
assigns, and that portion to be constructed by the City The covenants in this Section
2 05 run with and affect all of the lands comprising the Subdivision, and are binding
upon all present and future owners of said property
206 Extraction and Deposit of Soil
(a) In constructing the Regional Detention Pond, the City shall have the right to
deposit onto the "Remaining Property" (as that term is defined below) up to
10,000 cubic yards of soil extracted from the Detention Pond Property The
City may deposit such soil in piles without any grading or compaction of any
kind Prior to depositing the soil, the City will notify Locust/288 Partners,
or the then current owner of the Remaining Property (the "Owner"), in
writing of the intent to deposit the soil Within 10 days after the notice, the
Owner may give the City written direction of the preferred location to deposit
the soil If no written direction is made within said time period, the City will
be permitted to deposit the soil at any location on the Remaining Property
(b) The Owner shall be entitled to extract up to 90,000 cubic yards of soil from
the Detention Pond Property at a location that does not interfere with the
regional detention pond After extraction, if required by the City, the Owner
shall level and restore the area of extraction in such manner as may be
reasonably directed by the City Prior to extracting the soil, the Owner will
notify the City in writing of the intent do so Within 10 days after the notice,
the City may give the Owner written direction of the preferred location to
extract the soil If no written direction is made within said time period, the
Owner will be permitted to extract the soil at any location on the Detention
Pond Property that does not interfere with the regional detention pond At
the time of the development of the regional detention pond, and with the
Owner's approval (which will not be unreasonably withheld or delayed) the
City may deposit additional soil on the Remaining Property which will count
towards satisfaction of the 90,000 cubic yards provided for in this paragraph
Such deposits shall be made in accordance with the terms set forth in
paragraph 2 06(a) above
(c) The covenants in this Section 2 06 run with and affect the Detention Pond
Property and Remaining Property, and are binding upon all present and future
owners of said property As used in this Agreement, the term "Remaining
Property" shall mean that portion of the Subdivision on which, at the relevant
time, no subdivision improvements have been constructed or are in the
process of being constructed
DEVELOPMENT AGREEMENT PAGE/
ARTICLE III
Miscellaneous
301 Notices Any notice or communication required or permitted hereunder must be in
writing and shall be deemed to be delivered, whether actually received or not, on the
earlier date of (i) actual receipt, if delivered in person or by messenger or overnight
courier with evidence of delivery, or (n) transmission of an electronic facsimile
transmission ("Fax") with confirmation of delivery, or (ni) upon deposit in the
United States Mail as required below Notices may be transmitted by Fax to the Fax
telephone numbers specified below, if any Notices delivered by mail must be
deposited in the U S Postal Service, certified mail, return receipt requested, postage
prepaid, and properly addressed to the intended recipient at the address set forth
below Any party may change its address for notice purposes by delivering written
notice of its new address to all other parties in the manner set forth above which
notice of change of address will be effective five (5) days after receipt
302 Attorney's Fees If any parry shall be required to employ an attorney to enforce or
defend the rights of such party hereunder, the prevailing party shall be entitled to
recover reasonable attorney's fees and costs
303 Integration This Agreement contains the complete agreement between the parties
with respect to the subject matter hereof and cannot be varied except by written
agreement The parties agree that there are no oral or signed agreements,
understandings, representations or warranties made by the parties which are not
expressly set forth herein
304 Survival Except as otherwise provided in this Agreement, any portion of this
Agreement not otherwise consummated by the exercise of and closing under any
option granted herein will survive as a continuing agreement by and between the
Parties
3 05 Binding Effect This Agreement shall inure to the benefit of and bind the parties
hereto and their respective heirs, representatives, successors and permitted assigns
306 Time for Performance Time is of the essence under each provision of this
Agreement Strict compliance with the times for performance is required
307 Governing Law This Agreement shall be construed under and governed by the laws
of the State of Texas, and unless otherwise provided herein, all obligations of the
parties created under this contract are to be performed in the county where the
Property is located
DEVELOPMENT AGREEMENT PAGE 8
308 Severabilitv If any provision of this Agreement is held to be invalid, illegal, or
unenforceable by a court of competent jurisdiction, the invalid, illegal or
unenforceable provision shall not affect any other provisions, and this Agreement
shall be construed as if the invalid, illegal, or unenforceable provision is severed and
deleted from this Agreement
309 Counterparts This Agreement may be executed in a number of identical
counterparts Each counterpart is deemed an original and all counterparts shall
collectively constitute one agreement
3 10 Gender, Number Unless the context requires otherwise, all pronouns used in this
Agreement shall be construed to include the other genders, whether used in the
masculine, feminine or neuter gender Words in the singular number shall be
construed to include the plural, and words in the plural shall be construed to include
the singular
3 11 Assignment North Denton Partners and Locust/288 Partners shall have the right
upon ten (10) days prior written notice to the City to assign their respective rights and
delegate their respective duties under this Agreement without the express written
consent of the City The City may not assign its rights and delegate its duties under
this Agreement without the express written consent of North Denton Partners and
Locust/288 Partners, or their successors or assigns
3 12 Memorandum The parties hereto shall execute, contemporaneously herewith, a
Memorandum ofthe rights ofthe parties hereto, substantially in the same form as that
attached hereto as Exhibit `B" and made a part hereof for all purposes
DEVELOPMENT AGREEMENT PAGE 9
Dated on the dates following each of the parties' respective executions, but effective on the
Effective Date
Attest
Jennifer Walters, City Secretary
i
Approved as to legal form
Her L routy, rty Attorney
By
Nametier ..
Title J& ffyfj
The City of Denton,
a TexasAnunicipal corporation
Title City
North Denton Partners, Ltd,
a Texas limited partnership
By SLI-GP, Inc, its General Part
B � l
y
Name Michael San in
Title President
Locust/288 Partners, Ltd ,
By NOPO, L L C , its General Partner
By
Name i in
Title Manager
DEVELOPMENT AGREEMENT PAGE 10
CERTIFICATION
I, the undersigned City Secretary of the City of Denton, do hereby certify that this
Development Agreement was approved by ordinance or resolution adopted by the City Council of
the City of Denton on the 4°i day of October, 2000
N>fine
#�5r City Secretary
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DEVELOPMENT AGREEMENT PAGE 11
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EXHIBIT "B"
MEMORANDUM
This Memorandum (this "Memorandum") is dated to be effective the 41' day of October,
2000, and is by and between the City of Denton, Texas, a Texas municipal corporation (the "City"),
North Denton Partners, Ltd , a Texas limited partnership ("North Denton Partners"), and Locust/288
Partners, Ltd , a Texas limited partnership ("Locust/288 Partners"), to wit
This Memorandum is executed by the City, North Denton Partners, and Locust/288 Partners,
for the purposes of placing the public on notice of the existence of that certain Development
Agreement, of even date herewith, by and between the parties hereto, which grants certain rights to
various parties hereto and creates certain obligations of various parties hereto which cover and affect
the following lands
(1) that certain 30 191-acre tract, being the same land described as Tract Two in that
certain Special Warranty Deed with Vendor's Lien, dated January 21, 1988, from
SLI-GP, Inc , to North Denton Partners, Ltd , recorded in Volume 4264, Page 1384,
Deed Records, Denton County, Texas, and
(2) the lands described in that certain Special Warranty Deed with Vendor's Lien, dated
March 16,1999, from KDRC II limited partnership to Locust/288 Partners, recorded
in Volume 4299, Page 805, Deed Records, Denton County, Texas (the "Locust/288
Partners Tract")
The rights and obligations of the parties hereto under the Development Agreement shall terminate
upon the filing for record with the County Clerk of Denton County, Texas, of final plats which
collectively cover all of the Locust/288 Partners tract
Copies of the Development Agreement are maintained in the offices of the City, as well as
the offices of North Denton Partners and Locust/288 Partners, and are available for inspection and
review by the public
Executed to be effective as set forth above
The City of Denton,
a Texas mgnicipal corporation
Title City
North Denton Partners, Ltd ,
a Texas limited partnership
By SLI-GP, Inc , its General Par
By
Name Michael S d n
Title President
Locust/288 Partners, Ltd ,
a Texas limited partnership
By NOPO, L L C , its General Partner
By
Name Mi ael Sandlr
Title Manager
STATE OF TEX S )
COUNTY OF & )
This instrument was acknowledged before me on ef
Manager of The City of Denton, a Texas municipal corporation, 6�1
STATE OF TEXAS
y, Michael W Jez, City
of said cornoratidJn
��"" a ANN FORSYTHE
� . Notary Public, State of Texas
Wl)
My commislma 110ros
COUNTY OF QG� 5 2 Uo 0
1This nstr ant a ackn wledged before me on �� �, ii� by
4 �, ,' of SLI-GP, Inc, a Texas corporation, on behalf of
said corporation, on behalf of North Denton Partners, Ltd, a Texas limited partnership
STATE OF TEXAS
COUNTY O�)
y Public, State of Texas
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This instru ent was acknowledged before me on �LIOC� by
��, Manager ofNOPO, L L C , a Texas limited liability comp ny, on behalf
of said limited liability company, on behalf ofLocust/288 Partners, Ltd , a Texas limited partnership
y Public, State of Texas
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