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2014-197s:\legal\our documents\ordinancesU 4\nunc pro tunc ordinance accepting omitted polster non annexation agreement-dh-9 al redline.docx �►1�\' � � � � AN ORDINANCE OF THE CITY OF DENTON, NUNC PRO TUNC, CORRECTING AN INADVERTENT MISTAKE 1N ORDINANCE NO. 2012-362, RELATING TO THE ACCEPTANCE OF ELIGIBLE NON-ANNEXATION AGREEMENTS FOR AGRICULTURAL, WILDLIFE MANAGEMENT OR TIMBERLAND USE PROPERTIES WITHIN AN AREA OF LAND ADJACENT TO AND ABUTTING THE EXISTING CITY LIMITS OF THE CITY OF DENTON, TEXAS, GENERALLY IDENTIFIED AS DH-9, LOCATED NORTH OF POCKRUS PAGE ROAD, NORTH, SOUTH AND NORTHEAST OF EDWARDS ROAD, AND MORE SPECIFICALLY IDENTIFIED 1N EXHIBITS "A" AND B ATTACHED HERETO; SPECIFICALLY BY INCLUDING TWO PARCELS OF LAND THAT WER�'1NADVERTENTLY EXCLUDED FROM ORDINANCE NO. 2012-362 EVEN THOUGH TH� PARCELS WERE SUBJECT TO A SIGNED NON-ANNEXATION AGREEMENT; PROVIDING FOR SAVINGS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. . WHEREAS, on December 18, 2012, the City Council adopted Ordinance No. 2012-362, which ordinance accepted non-annexation agreements signed by eligible property owners within an area of approximately 298 acres of land generally identified as "DH-9", as legally described and depicted in the attached Exhibits 66 q 99 and "B" to Ordinance No. 2012-362 and attached �y herein, that was separately annexed into the City of Denton, Texas via Ordinance No. 2013-096 on April 16, 2013; and WHEREAS, per Section 43.035, Subchapter B, Local Government Code, a Texas city is required to make offers of non-annexation development agreements to the owners of all properties which have been appraised for ad valorem tax purposes as land for agricultural, wildlife management or timberland within the area to be annexed; and WHEREAS, under a non-annexation agreement between an eligible property owner and the City, the land subject to the agreement retains its extraterritorial status and the owners of such land must abide by the City's development regulations as if such land were within the City limits, as provided further in such agreement; and WHEREAS, the City has recently discovered that two otherwise eligible parcels, as legally described in Exhibit "C-6" as attached herein, were omitted from approval of non- annexation agreements by Ordinance No. 2012-362, due to an inadvertent clerical error; and WHEREAS, the properly owners had provided to the City a signed copy of the non- annexation agreement covering the two eligible parcels that were not included for adoption with Ordinance No. 2012-362; and WHEREAS, in the interest of fairness, and for the purpose of carrying out the original intent of Ordinances Nos. 2012-362 and 2013-096, the City and the affected owners wish to correct that inadvertent clerical error via this ordinance, nunc pro tunc, by approving a non- annexation agreement for these eligible parcels, to commence immediately and to expire on the same date as the rest of the non-annexation agreements approved by Ordinance No. 2012-362, and to thereafter correct annexation Ordinance 2013-096 via separate ordinance, nunc p�°o tunc, to remove these omitted eligible parcels from the City limits and tax rolls, and to reimburse the property owners for the City portion of ad valorem taxes paid as a result of being annexed via Ordinance No. 2013-096; and WHEREAS, the Denton City Council deems it to be in the best interests of the citizens of the City of Denton to enter into such non-annexation agreements with eligible property owners who timely submitted non-annexation agreements and have now corrected any legal defects therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference and found to be true. SECTION 2. A certain area of land was previously denominated in Ordinance No. 2012- 362 as "DH-9", which was legally described and depicted in attached Exhibits "A" and "B" to that ordinance, and incorporated therein by reference. For the purposes of this Ordinance, the term "DH-9" shall have the same meaning, and such prior legal description and depiction are incorporated herein by reference. SECTION 3. A certain offered non-annexation agreement relating to eligible properties contained within the previously defined DH-9 area, which has been properly executed by the owners of those properties, and which legally described by prior recorded instruments referenced therein, is hereby approved and accepted by the City of Denton, Texas. Said agreement is attached hereto and incorporated to Ordinance No. 2012-362 as Exhibit "C-6". SECTION 4. The City Manager is authorized and directed to sign the non-annexation agreement contained within Exhibit "C-6", for and on behalf of the City of Denton as a ministerial act, but with an effective date of this Council's action on same. The City Manager shall further arrange forthwith for the recordation of non-annexation agreements in the real property records of Denton County, Texas. SECTION 5. The City Manager shall ensure that the two parcels described in Exhibit "C-6" are removed from the City tax rolls and is further directed to undertake the necessary steps to reimburse the property owners the City portion of ad valorem taxes paid for the two parcels for the tax years subsequent to the adoption of Ordinance No. 2013-096. SECTION 6. All other provisions of Ordinance No. 2012-362 not specifically amended herein shall continue in force and effect; however, the provisions of this ordinance shall govern and control over any conflicting provisions of Ordinance No. 2012-362, to the extent of any such conflict. Page 2 SECTION 7. This Ordinance shall take effect immediately on its passage and approval. AND IT IS SO ORDERED. PASSED AND APPROVED by the City Council reading this ��i�-�y of �, 2014. _.. �" �".I�I1�. � � C� ��, MAYC3I� ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: �,�,� A1'f� VTI� = TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY fi,�' , � " � � �-�... �� BY: �..� �� .. � � ��, �,� , � � Page 3 � � i � � a; �C�1, thase certairt l�t,g, fi��ct� ox parc�ls d�' l�nnci 1�+�� .� �i�g situa.tec� i� i�c� �a�.nty af �cnt�n, St�te �f Texas ar�� r�sently �ein v� all� surro ci�ci d Cu�ly �rrab�°a� by t1�e ��r�tra�� c�ty 1� i� u�dar�es A� ��d ��d est�blis b�r the u�x�i�vn c�rr�in c�s �s �al�a�rs9 i)r�ii�r c� i9�3-��, t�r�i€� � 19�4-1°7 �'I'ra�ct� l� �L�J, �r�inz�n�� 19&�m}'�, Clyd.inance 19��1��, �}�3i.n�� 1�8f-1�€�, C)ra�nan� i9��14� f��di��.r�cc� ��iW218, C��l��n�e ��-�256, (�re�rn.�sx�� i 9�19-�G2, C9rciin�►� 2C}�4-l�� `I"r�� TI�, �n� C�rc�is�� 7t�(14-1��; a�ti i��i�� rr�r�r� �peci�ics�(ly t��scrii�d t�s foll�t�+s: �Ci 1 C'x �t a int t�cs��Ysc�d an �r ir�unce �6-130, sr��i p�zn� bea�a� an e��rt�x tst�und IYne of t�� ro�a� ��s�rib�rt A Ur�ir��nc:ee �4-�7 d��ai�t i� � cer��er �f S's�er aad, �aid �a�nt �lsv in� t�ac Point a�' e�i in� af the property d��crib� in �lydl nce �G-��U; `l.'[��NC� I�ic�z�h �(i� 41' 0��' � t, � ��.i�7 ��t vvat� �he c�ni�r o��" � � `sh�r �2c��ci t� � }��in� far a corn�r� °�'i�� CE � ��a SO' S8" �,ast, l �SS<S6 �ec:t lc� a �a�int �or � cc�r�c�r� .�*TC�; nc�riher.ly$ �lan� the wv�s� 1�rt� t��'t�a� ��:�i� ��~a�� i� �:��•�i�t�° cc 8�-13� tc� � �ai�� d�cri �d i� �Jrciin��c� 9��2�G, �� ii�� ir�� i��, :��r�a�i��.��t � � �r �� p��z�t,� ��scr�t��fl in �rdan�.nna� �bw256; '!'I��;N(o°l�, i�ic�rtl� �E�F �3' �t�" �+i�st, 1632.� Zo � p��n� far �. �c�rncr, s�ir� pr�in� being the �ai�t �t �innin�; ��r th� �z��t�r��r descri �d �n C�r�ii� nce ��2�6; "�`i�i�N�� irsr�h 0�° 4�' 2�3'� �:�st, 283.1 fe�t t� � p�� '�r ��orn�r; "�'II�: �i; �r�rih �2° �}K° ��'� �'�st, �'7l .�� 'e�t t� a �oirnt fc�r a ��rncr; ��ICE a �� 9' ��" � st, S��<�9 f��t la a paiai far � c�rncr� i�; CE ��u 8�� 2I' 22"' �a�t, l S(}.�3 ��t tc� � painf ior � cr�rn�r; "�'�i�NC:�J �c��Yh ��° �Q' 4�'k ��st, 7Q4r 4�eet ic� a�►a°r�% c�� corner, ��ic� int b�ng e n�rthe�si rncr c�f the �ra rty rlcscxi d�n C}rdina��ce �8�25� anci c�� ih� vv��t li�e �f ih� � �rty d�s�ri�ie�i in �rdin 8f�-�3t�; `�NC� ncsrt�.erly �l�n� th� r�r�st 1ir�e ��° thc pr��rt� d�,�cribeci xn t3rdinan.c� $6-1�0, s�d pc��.�1 k�ei r�� c�rll� t ca �r c�� tk�� pr��erty> `��"�+iC� ax�h 8�� ' C�3" � t, � 2ti1.4f� f�� a � ir�t ��r �� t�c�; T��C� i�orth 0�° �0' l 6"' We�t, 83.55 feet ta a�int, ��id �ini b�iz�� h� b�gir��ing o�' a c�rv� ��so�a c� i� �rdiz�an $6-1 �Q; � ' '.:,.. �,,� "I' �I�t�� 552,92 9:eet �lc�ng e�bav� r��e�n� c � t� � pdixr� �L �nd t�itlx� cucve; BNC� c�r � 1� 19'44" � t, 6��,�9 .f t t� � int for � c�r�er, �"d ��' t o►� � ri�� s�� i� C3rdx y��e 82-214; TI �C� �s�erly �rn� � 1%�ae de�crib�c� zn a ir��nce 82-�1� ta a poif�t iar � �r, s�.ci p�i�i ��r� iJ� y�� c��`�� ers (��I�C�) c�num�nt �-��8- a T` wN�E �on� � ser�� ses d�ist�xa s tta c� cxihea� iz� Ordir�an�e �2-21� �s %llc�ws; �� 2� � 8' ��, 2�� i" t i�� J�,�� n et�t P-23�- m ��utb 69° 35' �tilest, ��6,8 #`eei� ia TJ�A�� 1Mon.u�.ner►t �'-2�tlbW, N'c�rth 3�p �9' �sky I�4�.� fe�t ta �iS�C� o� �nt P-�41- ; �c�util� �8p 12' est, C��.� �"u;t t� T��C� on ��t P«242- > t� t 8°��' �st, 547.2 i` i tt� USAC� ot� etzt i�-243-"�$ Nc�rtfi 17° 12' ' �.�t, ��i.7 �e�i to �A�� I�c�nutrae�t �-�4�1- � �tar�� 27° �1 ��as�, 1 t"i4E7 f�i �o U��.C�� r�ur��t k�-Z4S-W; T�N�� So�th �8p 5�' Ea�� a � p�i��t v� int�rs�� vit�t �h� p�pe�y ��s��ibed iX� �2rctin�nc� 8��12�1, i`�-l�� i��rt��rester�y �c�ng the ar�idd�� €��' P�c� �rc�� p�rc��,:�mat�ly iO4D �`��t ir� � series ai cc�urses �Yri di�tanc as c��scr�%ed in C� `n �� $�-129 ta a pa�r�t �� is�tersectiota wit�i ilu: � si bq y rs!' �� r�peri� �3cscri�eci in C?rdi �� 83-18; THFdN�E �c}uth �" ��" �2" ��st, 74�.55 feet tn a poinl ['Qrr ra �orncr, said pc�int bc;ing 4:he s�a� t�ai�l c;�ar��z �t' e prnp�r�y �.�sc�ib�c� irt Clr�.in c:� �3w1.8; "t "�iC"� e�t�rl;y a�prox` �t�ly 31� f�c� t� a ant s�f i�it�rsect�ca� with the pra��ty d�s�ri �l is� 0� c� �Ob�-1��, "�i �►oint b�in� �e ne� ��t c.c� cr r�f �aid �e��+; '('T��sN��? 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L�� '� P I�1��IIl � � t'�}'� � d,_ ' �� w. ' � � �� ,� � � �� _ : � �� # £e�� " �� u �� _ �_ �� . . . . f �� ; :,� �� P' / � Page % � ,� F ''V r '�t . 1: f"°� 4S.s � a. �' � � �_. �_ m � °: � � ,. I � �; ;'�� ' �-�:��; ,: � � �r� ��f� �� °�.� s,��.� t EXHIBIT C-6 CHAPTER 212 TEXAS LOCAL GOVERNMENT CODE NON-ANNEXATION AGREEMENT This Agreement is entered into pursuant to Section 212.172 Tex. Local Gov't Code by and between the City of Denton, Texas (the "City") and John R. Polster and Lisa K. Polster ("Owners"), the property owners of the hereinafter described property (the "Property") in Denton County, Texas, sometimes individually or collectively referred to as "Party" or "Parties": 1. Being a 10.10 acre tract of land, more or less, situated in the Gideon Walker Survey, Abstract No. 1330, Denton County, Texas, and being more fully described in that certain Warranty Deed with Vendor's Lien dated September 28, 2007 from Raymond L. Grimes and Judith Mae Grimes, husband and wife to John R. Polster and Lisa K. Polster, husband and wife, filed for record on October 3, 2007 and recorded in Instrument No. 2007-117718 of the Real Property Records of Denton County, Texas. Said 10.10 acre tract is commonly known as DCAD Property ID 524157. 2. Being a 10.100 acre tract of land, more or less, situated in the Gideon Walker Survey, Abstract No. 1330, Denton County, Texas, and being more fully described in that certain Warranty Deed with Vendor's Lien dated September 21, 2005 from Raymond Lee Grimes and wife, Judith Mae Grimes to John R. Polster and wife, Lisa K. Polster, filed for record on October 5, 2005 and recorded in Instrument No. 2005-123913 of the Real Property Records of Denton County, Texas; now known as Lot 1, Block 1 of Polster Addition, an Addition to the E.T.J. of the City of Denton, filed for record on March 7, 2011 and recorded in Instrument Number 2011-42 of the Plat Records of Denton County, Texas. Said 10.100 acre tract is commonly known as DCAD Property ID 306410. WHEREAS, the City has given notice of its intent to institute annexation proceedings for an "Annexation Area" that includes the above-described Property, in accordance with Tex. Loc. Gov't Code ch. 43; and WHEREAS, Owners desire that the Property remain in the City's extraterritorial jurisdiction ("ETJ") for the term of this Agreement; WHEREAS, Owners and the City acknowledge that this Agreement between them is binding upon the City and the Owners and their respective successors and assigns for the term of the Agreement; WHEREAS, the Denton County Appraisal District records show that the Property currently is appraised for ad valorem tax purposes as land for agricultural or wildlife management use, or timber land pursuant to Tex. Tax Code chapter 23.C, D, or E; and WHEREAS, OWNERS represent that it is their intention not to develop the Property during the term of this Agreement; and WHEREAS, Tex. Loc. Gov't Code section 43.035 authorizes a property owner and a municipality to enter into an agreement pursuant to Tex. Loc. Gov't Code section 212.172 for purposes of retaining land in the municipality's ETJ in exchange for the property owner's . �. « .� . covenant not to develop the property and to authorize the municipality to apply development regulations not inconsistent with agricultural use; and WHEREAS, the Parties are desirous of entering into an agreement authorized under Tex. Loc. Gov't Code section 43.035; and WHEREAS, this Agreement is to be recorded in the Real Property Records of Denton County, Texas; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereto agree as follows: Section 1. Continuation of ETJ Status. The City guarantees the continuation of the extraterritorial status of the Property and agrees not to annex the Property for the term of this Agreement, as hereinafter defined, and any subsequent renewals as may be agreed upon by the Parties, subject, however, to the provisions of this Agreement. Section 2. Development Plan. The Owners covenant and agree that use of the Property for the term of this Agreement and any extensions agreed to by the Parties shall be limited to farm-related and ranch-related uses and customary accessory uses, and single-family detached farm or ranch dwellings, provided that no single-family dwelling may be located or constructed on a lot smaller than five (5) acres unless the lot was created prior to the date of this Agreement. The property owner may apply to the City for division of the land subject to this Agreement into parcels, each of which is at least five (5) acres in size, for the purposes set forth in this section without being in violation of this Agreement. Such uses and activities constitute the development plan for the Property in satisfaction of Tex. Loc. Gov't Code section 212.172(b). Section 3. Governing Regulations. The following City regulations shall apply to any development of the Property, as may be amended from time to time, provided that the application of such regulations does not result in interference with the use of the land for agricultural, wildlife management or forestry purposes and does not prevent the continuation of a use established prior to the effective date of this Agreement and which remains lawful at the time the Agreement is executed: (1) Zoning standards contained in the Denton Development Code ("DDC"), as amended pursuant to The Denton Plan, 1999-2020, as amended, including but not limited to the (RD-5) Zoning District regulations, and standards incorporated therein (2) The subdivision and development regulations contained within the Denton Development Code, as amended, together with applicable Design Criteria Manuals (including construction, drainage, site design, solid waste, transportation, tree protection standards, and water/wastewater), Denton Mobility Plan and other approved Master Plans of the City of Denton, Texas, and the North Central Texas Council of Governments Standard Speciiications for Public Works Construction, North Central Texas, 3rd Ed. 1998 (NCTCOG Manual); Page 9 (3) Denton building codes, as contained within Denton Code Chapters 17, 28 and 29, and DDC Subchapter 24, adopting: a. International Building Code, 2006 Edition with local amendments; b. Intemational Residential Code, 2006 Edition with Appendix G and local amendments; c. The International Fire Code, 2006 Edition with local amendments; d. International Plumbing Code, 2006 Edition with local amendments; e. International Fuel Gas Code, 2006 Edition with local amendments; f. International Mechanical Code, 2006 Edition with local amendments g. Code of Ordinances Chapter 17, Denton Property Maintenance Code, as amended; h. International Energy Conservation Code, 2006 Edition with regional amendments; i. National Electric Code, 2005 Edition with local amendments. j. National Electric Safety Code, 2003 Edition, with regional arnendments; k. Minimum housing and building standards, Denton Code §§28-383 — 437 and §§17-141 — 210, as amended and as applicable; 1. Irrigation Standards, Denton Code §§28-441 — 457; and m. Moving Buildings, Denton Code §§28-326 — 375; (4) Sign regulations, as contained within Subchapter 15 of the DDC, as amended; (5) Applicable water and wastewater connection, construction and on-site operation requirements, contained within Chapter 26 of the Denton Code of Ordinances, as amended, and Subchapters 16 and 21 of the DDC, as amended, the Denton Water and Wastewater Criteria Manual, as amended, and as supplemented by the Texas Water Code, as amended, Texas Natural Resources Code, as amended, Texas Utilities Code, as amended, and applicable administrative standards of the Texas Commission on Environmental Quality, as amended; (6) Applicable Flood Protection, Drainage and related standards, as contained within Chapter 30 of the Denton Code, as amended, and subchapters 17 through 19 of the DDC, as amended, the Denton Drainage Criteria Manual, as amended, and as supplemented by requirements of the Texas Water Code, as amended, Texas Natural Resources Code, as arnended, applicable administrative standards of the Texas Commission on Environmental Quality, as arnended, and applicable administrative standards of the Federal Emergency Management Administration, as amended; and (7) Gas Well platting, drilling and production standards, as contained in §35.16.19 and subchapter 22 of the Denton Development Code, as amended and as applicable, and as supplemented by requirements of the Texas Utilities Code, the Texas Natural Resources Code, the Texas Water Code, and Page 10 applicable administrative standards of the Texas Railroad Commission and Texas Commission on Environmental Quality, as amended. Section 4. Development Plan to Remain in Effect. Following termination of this Agreement for any reason, the Development Plan set forth in Section 2 shall remain in effect for a period of 180 calendar days thereafter, or until the effective date of the annexation and permanent zoning of the Property, whichever first occurs. The Parties covenant and agree that the City may deny any development application or plan of development that is submitted to the City for the Property during such period if such application or plan is inconsistent with the Development Plan. The Owners expressly waive any vested rights that might otherwise arise under local or state law, or by common law, from the submittal of such inconsistent development application. The Owners further agree that no use commenced or completed on the Property that is inconsistent with the development plan shall be considered established or in existence prior to the expiration of the 180-day period during which the Development Plan is in effect. Section 5. Agreement Deemed Void in Part; Voluntary Annexation. (A) If an Owner files any application or plan of development for or otherwise commences development of any portion of the Property inconsistent with the Development Plan provided in Section 2, sections 1 and 3 of this Agreement shall thereupon become null and void. (B) Thereafter the City may initiate annexation of the Property pursuant to Tex. Loc. Gov't Code subchapter C-1, or other such other provisions governing voluntary annexation of land as may then exist. Owners expressly and irrevocably consent to annexation of the Property under such circumstances. Owners further agree that such annexation by the City shall be deemed voluntary, and not subject to the requirements and procedures for an annexation plan, as required by Tex. Loc. Gov't Code section 43.052, or successor statute. Section 6. Notice of Sale. Any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give 30 days written notice of this Agreement to the prospective purchaser or grantee. A copy of the notice shall be forwarded to the City at the following address: City of Denton, Texas ATTN: Director of Planning and Development 221 N. Elm Street Denton, TX 76201 Section 7. Recording. This Agreement is to run with the Property and be recorded in the real property records, Denton County, Texas. Section 8. Severability. Invalidation of any provision of this Agreement by judgment or court order shall not invalidate any of the remaining provisions which shall remain in full force and effect. Section 9. Remedies. This Agreement may be enforced by either Owner or the City by any proceeding at law or in equity. Failure to do so shall not be deemed a waiver to enforce the Page 11 provisions of this Agreement thereafter. Entry into this Agreement by Owner waives no rights as to matters not addressed in this Agreement. Section 10. Change in Law. No subsequent change in the law regarding annexation shall affect the enforceability of this Agreement or the City's ability to annex the properties covered herein pursuant to Section 4. Section 11. Venue. Venue for this Agreement shall be in Denton County, Texas. Section 12. Execution in Multiple Copies. This Agreement may be separately executed in individual counterparts and, upon execution, shall constitute one and same instrument. Section 13. Term and Extension. Unless extended by mutual agreement of the Parties, this Agreement shall terminate on August 1, 2020. The Effective Date of the Agreement shall be the date the Agreement is executed by the City. The Term may be extended upon mutual agreement of the Parties. In the event that the Denton City Council fails to cornplete annexation of the proposed Annexation Area, excluding any land subject to an executed non-annexation agreement, and as may be modified by any changes to the City's annexation plan, prior to June 1, 2013, the City Manager is authorized to rescind this Agreement on behalf of the City, if such rescission is requested by Owners prior to December 1, 2013. Section 14. Survival of Covenants. The covenants in Sections 2, and 4 shall survive termination of this Agreement, together with any other provisions, as may be necessary for the implementation of those sections. The Parties hereto have executed this agreement as of a , 2014, Owners John R. Polster Lisa K. Polster The City of Denton, Texas BY� .,.�.� � _. _ ...�. City Manager, Deputy City Manager, or Designated Representative Page 12 THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of , 2014, by John R. Polster. Notary Public, State of Texas THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknawledged before me on the day of , 2014, by Lisa K. Polster. Notary Public, State of Texas THE STATE OF TEXAS } COUNTY OF DENTON } This instrument was acknowledged before me on the day of _....�..._, �i1149 bY .�._... �........._r _...... «...� , City Manager/Deputy City Manager/Designated Representative, on behalf of the City of Denton, Texas. APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY : Notary Public, State of Texas Page 13 I c:\docume�l\john\locals�l\temp\temporarydirectory 1 forfw_%20non%20annexation%Z�agPee111erit�1�.Z1p�p01SteP�O11T1 1riCl lisa dh-91ine 12.docx CHAPTER 212 TEXAS LOCAL GOVERNMENT CODE NON-ANNEXATION AGREEMENT This Agreement is entered into pursuant to Section 212.172 Tex. Local Gov't Code by and between the City of Denton, Texas (the "City") and John R. Polster and Lisa K. Polster ("Owners"), the property owners of the hereinafter described property (the "Property") in Denton County, Texas, sometimes individually or collectively referred to as "Party" or "Parties": 1. Being a 10.10 acre tract of land, more or less, situated in the Gideon Walker Survey, Abstract No. 1330, Denton County, Texas, and being more fully described in that certain Warranty Deed with Vendor's Lien dated September 28, 2007 from Raymond L. Grimes and Judith Mae Grimes, husband and wife to John R. Polster and Lisa K. Polster, husband and wife, filed for record on October 3, 2007 and recorded in Instrument No. 2007-117718 of the Real Property Records of Denton County, Texas. Said 10.10 acre tract is commonly known as DCAD Property ID 524157. 2. Being a 10.100 acre tract of land, more or less, situated in the Gideon Walker Survey, Abstract No. 1330, Denton County, Texas, and being more fully described in that certain Warranty Deed with Vendor's Lien dated September 21, 2005 from Raymond Lee Grimes and wife, Judith Mae Grimes to John R. Polster and wife, Lisa K. Polster, filed for record on October 5, 2005 and recorded in Instrument No. 2005-123913 of the Real Property Records of Denton County, Texas; now known as Lot 1, Block 1 of Polster Addition, an Addition to the E.T.J. of the City of Denton, filed for record on March 7, 2011 and recorded in Instrument Number 2011-42 of the Plat Records of Denton County, Texas. Said 10.100 acre tract is commonly known as DCAD Property ID 306410. WHEREAS, the City has given notice of its intent to institute annexation proceedings for an "Annexation Area" that includes the above-described Property, in accordance with Tex. Loc. Gov't Code ch. 43; and WHEREAS, Owners desire that the Property remain in the City's extraterritorial jurisdiction ("ETJ") for the term of this Agreement; WHEREAS, Owners and the City acknowledge that this Agreement between them is binding upon the City and the Owners and their respective successors and assigns for the term of the Agreement; WHEREAS, the Denton County Appraisal District records show that the Property currently is appraised for ad valorem tax purposes as land for agricultural or wildlife management use, or timber land pursuant to Tex. Tax Code chapter 23.C, D, or E; and WHEREAS, OWNERS represent that it is their intention not to develop the Property durir�g the term of this Agreement; and WHEREAS, Tex. Loc. Gov't Code section 43.035 authorizes a property owner and a municipality to enter into an agreement pursuant to Tex. Loc. Gov't Code section 212.172 for c:\docume--1\john\locals--1\temp\temporarydirectory 1 forfw_%20non%20annexation%ZOagTee1110rit�l�.zip\polster john and lisa dh-91ine 12.docx purposes of retaining land in the municipality's ETJ in exchange for the property owner's covenant not to develop the property and to authorize the municipality to apply development regulations not inconsistent with agricultural use; and WHEREAS, the Parties axe desirous of entering into an agreement authorized under Tex. Loc. Gov't Code section 43.035; and WHEREAS, this Agreement is to be recorded in the Real Property Records of Denton County, Texas; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Parties hereto agree as follows: Section 1. Continuation of ETJ Status. The City guarantees the continuation of the extraterritorial status of the Property and agrees not to annex the Property for the term of this Agreement, as hereinafter defined, and any subsequent renewals as may be agreed upon by the Parties, subject, however, to the provisions of this Agreement. Section 2. Development Plan. The Owners covenant and agree that use of the Property for the term of this Agreement and any extensions agreed to by the Parties shall be limited to farm-related and ranch-related uses and customary accessory uses, and single-family detached farm or ranch dwellings, provided that no single-family dwelling may be located or constructed on a lot smaller than five (5) acres unless the lot was created prior to the date of this Agreement. The property owner may apply to the City for division of the land subject to this Agreement into parcels, each of which is at least five (5) acres in size, for the purposes set forth in this section without being in violation of this Agreement. Such uses and activities constitute the development plan for the Property in satisfaction of Tex. Loc. Gov't Code section 212.172(b). Section 3. Governin��ulations. The following City regulations shall apply to any development of the Property, as may be amended from time to time, provided that the application of such regulations does not result in interference with the use of the land for agricultural, wildlife management or forestry purposes and does not prevent the continuation of a use established prior to the effective date of this Agreement and which remains lawful at the time the Agreement is executed: (1) Zoning standards contained in the Denton Development Code ("DDC"), as amended pursuant to The Denton Plan, 1999-2020, as amended, including but not limited to the (RD-5) Zoning District regulations, and standards incorporated therein (2) The subdivision and development regulations contained within the Denton Development Code, as amended, together with applicable Design Criteria Manuals (including construction, drainage, site design, solid waste, transportation, tree protection standards, and water/wastewater), Denton Mobility Plan and other approved Master Plans of the City of Denton, Texas, and the North Central Texas Council of Governments Standard Specifications 2 c:\docume�l\john\locals�l\temp\temporarydirectory 1 forfw_°iozonon�ioao�,neXar�on%20agreement[1].zip\polster john and lisa dh-91ine 12.docx for Public Works Construction, North Central Texas, 3rd Ed. 1998 (NCTCOG Manual); (3) Denton building codes, as contained within Denton Code Chapters 17, 28 and 29, and DDC Subchapter 24, adopting: a. International Building Code, 2006 Edition with local amendments; b. International Residential Code, 2006 Edition with Appendix G and local amendments; c. The International Fire Code, 2006 Edition with local amendments; d. International Plumbing Code, 2006 Edition with local amendments; e. International Fuel Gas Code, 2006 Edition with local amendments; £ International Mechanical Code, 2006 Edition with local amendments g. Code of Ordinances Chapter 17, Denton Property Maintenance Code, as amended; h. International Energy Conservation Code, 2006 Edition with regional amendments; i. National Electric Code, 2005 Edition with local amendments. j. National Electric Safety Code, 2003 Edition, with regional amendments; k. Minimum housing and building standards, Denton Code §§28-383 — 437 and §§17-141 — 210, as amended and as applicable; 1. Irrigation Standards, Denton Code §§28-441 — 457; and m. Moving Buildings, Denton Code §§28-326 — 375; (4) Sign regulations, as contained within Subchapter 15 of the DDC, as amended; (5) Applicable water and wastewater connection, construction and on-site operation requirements, contained within Chapter 26 of the Denton Code of Ordinances, as amended, and Subchapters 16 and 21 of the DDC, as amended, the Denton Water and Wastewater Criteria Manual, as amended, and as supplemented by the Texas Water Code, as amended, Texas Natural Resources Code, as amended, Texas Utilities Code, as amended, and applicable administrative standards of the Texas Commission on Environmental Quality, as amended; (6) Applicable Flood Protection, Drainage and related standards, as contained within Chapter 30 of the Denton Code, as amended, and subchapters 17 through 19 of the DDC, as amended, the Denton Drainage Criteria Manual, as amended, and as supplemented by requirements of the Texas Water Code, as amended, Texas Natural Resources Code, as amended, applicable administrative standards of the Texas Commission on Environmental Quality, as amended, and applicable administrative standards of the Federal Emergency Management Administration, as amended; and c:\docume�l\john\locals--1\temp\temporarydirectory 1 forfw_%20non%20annexation%ZOagPeeTTlerit�l�.zip\polster john and lisa dh-91ine 12.docx (7) Gas Well platting, drilling and production standards, as contained in §35.16.19 and subchapter 22 of the Denton Development Code, as amended and as applicable, and as supplemented by requirements of the Texas Utilities Code, the Texas Natural Resources Code, the Texas Water Code, and applicable administrative standards of the Texas Railroad Commission and Texas Commission on Environmental Quality, as amended. Section 4. Development Plan to Remain in Effect. Following termination of this Agreement for any reason, the Development Plan set forth in Section 2 shall remain in effect for a period of 180 calendar days thereafter, or until the effective date of the annexation and permanent zoning of the Property, whichever first occurs. The Parties covenant and agree that the City may deny any development application or plan of development that is submitted to the City for the Property during such period if such application or plan is inconsistent with the Development Plan. The Owners expressly waive any vested rights that might otherwise arise under local or state law, or by common law, from the submittal of such inconsistent development application. The Owners further agree that no use commenced or completed on the Property that is inconsistent with the development plan shall be considered established or in existence prior to the expiration of the 180-day period during which the Development Plan is in effect. Section 5. A�reement Deemed Void in Part; Voluntary Annexation. (A) If an Owner files any application or plan of development for or otherwise commences development of any portion of the Property inconsistent with the Development Plan provided in Section 2, sections 1 and 3 of this Agreement shall thereupon become null and void. (B) Thereafter the City may initiate annexation of the Property pursuant to Tex. Loc. Gov't Code subchapter C-1, or other such other provisions governing voluntary annexation of land as may then exist. Owners expressly and irrevocably consent to annexation of the Property under such circumstances. Owners further agree that such annexation by the City shall be deemed voluntary, and not subject to the requirements and procedures for an annexation plan, as required by Tex. Loc. Gov't Code section 43.052, or successor statute. Section 6. Notice of_Sale. Any person who sells or conveys any portion of the Property shall, prior to such sale or conveyance, give 30 days written notice of this Agreement to the prospective purchaser or grantee. A copy of the notice shall be forwarded to the City at the following address: City of Denton, Texas ATTN: Director of Planning and Development 221 N. Elm Street Denton, TX 76201 Section 7. Recordin�. This Agreement is to run with the Property and be recorded in the real property records, Denton County, Texas. � c:\docume�l\john\locals�l\temp\temporarydirectory 1 forfw_%aonon�iozo�,neXac�on%20agreement[1].zip\polster john and lisa dh-91ine 12.docx Section 8. Severabilitv. Invalidation of any provision of this Agreement by judgment or court order shall not invalidate any of the remaining provisions which shall remain in full force and effect. Section 9. Remedies. This Agreement may be enforced by either Owner or the City by any proceeding at law or in equity. Failure to do so shall not be deemed a waiver to enforce the provisions of this Agreement thereafter. Entry into this Agreement by Owner waives no rights as to matters not addressed in this Agreement. Section 10. Change in Law. No subsequent change in the law regarding annexation shall affect the enforceability of this Agreement or the City's ability to annex the properties covered herein pursuant to Section 4. Section 11. Venue. Venue for this Agreement shall be in Denton County, Texas. Section 12. Execution in Multiple Copies. This Agreement may be separately executed in individual counterparts and, upon execution, shall constitute one and same instrument. Section 13. Term and Extension. Unless extended by mutual agreement of the Parties, this Agreement shall terminate on August 1, 2020. The Effective Date of the Agreement shall be the date the Agreement is executed by the City. The Term may be extended upon mutual agreement of the Parties. In the event that the Denton City Council fails to complete annexation of the proposed Annexation Area, excluding any land subject to an executed non-annexation agreement, and as may be modified by any changes to the City's annexation plan, prior to June 1, 2013, the City Manager is authorized to rescind this Agreement on behalf of the City, if such rescission is requested by Owners prior to December 1, 2013. Section 14. Survival of Covenants. The covenants in Sections 2, and 4 shall survive termination of this Agreement, together with any other provisions, as may be necessary for the implementation of those sections. � � The Parties hereto have executed this agreement as of � f �� F�, 2014. John��'�lster � • -'`� �� ,�� r � �� . . . .. j��fj ��` �� .� ��,�,P �;;. Polster 5 c:\documc-1\john\locals�l\temp\temporarydirectory 1 forfw_%20non%20annexation%Z�agT00merit[1].Z1p�pO1St0T j0111'1 aT1C� lisa dh-91ine 12.docx THE CITY OF DENTON, TEXAS r,. � .� ;�x ,_� ,,Y-° �. � . �, B � .. . —��` „� y; ��,�. �..�_ City Manager Deputy City i�T�r��i��, or Designated Representative THE STATE OF TEXAS COUNTY OF DENTON � This instrument was acknowledged before me on the �_ day of _„ _, - �w�._.. 2014, by John R. Polster. }��r�� .�..��. ��"�+�; pw�� SANDY LAWSON �°' �� No4ary PubHC, 5tc74e of Texas ��. :� My Commisslon Explres . "�� Ocfober07,2016 � "Naauswa ._ .. THE STATE OF TEXAS COUNTY OF DENTON a �s..,t-°" Notary Public, State of exas � This instrument was acknowledged before me on the I D day of � `�—.... �..., 2014, by Lisa K. Polster. @��fl�',;-{, SANDY LAWSON � � x�° ;n No4ary Publfc. S4ate of Texas ° ^�,� � :��,� �� My Commisslon Exp�res , Notary Public, State c�� `Texas ��' ��,�� ;;� October 07, 2016 � t ;Y9115 . THE STATE OF TEXAS COUNTY OF DENTON � This i'�si�� irs��at was �c�cr�c�w�l�d��cl before me on the �� day of � ,Z�114, by T; `� . ,� , _ , City Manager/Deputy Cit �I�� 1I}esi��tcd R��ax�s�nir "v�:.s on behalf f`the City of Denton, Texas. ''��"'' ��f,�.G�,.�t�.'��r�:.��_�` �� . ,� , �.'� ._:� �, �k �i�'� � �' � - � sr�.'6t � �-��,; ,�_. . - � , -�° �...., _ � � �� 5 �� o � � � u� I�1 t �� 1� c� �� :� � �"exas �. f�.q ��±n��.��r �?� �i�� ,. ,y° ' a,4�4�+� � c,\docume�l\john\locals�l\temp\temporary directory 1 foefw_%20non%20annexation%ZOagTeeril�rii�l�.zip\polster john and lisa dh-91ine 12.docx APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY � � +j �� f"' r�£i�, ��, a,�,�° BY: �.. . � �: a, �, , � r �� ,. �� ,,�� ; . �''7'Q L� SO� 0� GF �l 5900526-X THIFNTl59 � John R. PolsterlRaymond �ee Grimes WARRANTY DEED WITH VENDOR'S LIEN NOTICE OF CONFIDEN7IALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR S7R11<E ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORDS IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. D ate Grantor: Grantor's Mailing Address: Grantee: Grantee's Mailing Address; 7his 21 st of September, 2005 Raymond Lae Grimes �rnd wife, Judith Mae Grimes 4268 Swisher Road, benton, Denton County,Texes 76208 John R, Polster and wife, Lisa Polster 415 Bronco Circle, Shady Shores, Denton County, Texas 7620$ Consideration: 'iEt�3 Ahs€� CJ�t1 {7Ci I��ILL,�i�� i�1 Q.[��1} �r,d �tY��r va6a��G1� ��a�s;d�r�ti4n �r��i �e�t� €�f e:af�rr �f�t� �x��u�e� �y �rantc;� �aav�b�e aco- th� r�r�i�t e�# �i�y�vs��7� L. �rirnes ar�c� �t�t��tf7 h;l�� C�ri��s 4"I��'��r'"�, In �€5c �ns�unt �s€ ��t� }-kun�i��c� ��r��1tY �°k��07� i'}s�hla�� s�1�i �u�,°1t1��--�•f,�i�t�,€st�ti.�i€�} t�a ��t� b�� se��ar�� in whs�l� t�r Krs �a�r� 4�� v�rid�ar s 9itr� r�tt��a�r�� ir� fa�r�r c�f i,�rrsSer in Ciiis ��erY �ca�! �1se� se�ea�red t�y �� eeti r�f Trust of even date from Grantee to Fontaine D, Laughlin, Trustee Property (including any improvements): 10,10 acres in the Gideon Walker Survey Abstract 1330, Denton County, Texas, more specifically described in Exhibit "A" Attached hereto and made a part hereof. Reservations from and Exceptions to Conveyance and Warranty: Any and all restrictions and easements of record. Granlor, for tl�e consideration and subject to the reservations froin and exc�p:ions to conveyance sr.d warranty, grants, sells, and canveys to Grantee the p�a�a€�rsy, t�gott�er w�tb� �k6 an�l �at�e�k�l��' th� ru��t� �rsr;N appurtenances thereto in any wise belonging, to ha�.+L arsd I'�c�c� 3t ta �r��t��R C�� ''��• ��t°F�° administrators, successars, or assigns, as the case s�r�y b�, f�rrev�r. �r�n�c�r haio�cls sar��t�sr an� i�r�a�ts�r's heirs, executors, administrators, successors and assigns, as the t�se i�ray k��, t� v�'�rrant �r+d f�r�+�� 1 and singular the property ta Grantee and Grantee's heirs, executar�, a�ir��w�ist��rs, su�:c�ss�rs, �ri�9 �sssc3�3s against every person whomsoever lawfully claiming or to claim th� s�rrse cas �nY �art ��r�ca�, �xcat�� s �� t�a� r��ervations from and exceptions to conveyance and werranty. All int�r�st «r �rae� ta �3� �i?a �� r ��i�`��r�ls wn, on, under or that may be produced from is hereby reserved to Grantor, his heirs, successors andl or assigns. The vendor's lien against and superior title to the property are retained until each note described is fully paid according to its terms, at which time this deed shall become absolute, The vendor's lien and superior title are transferred to Lender without recourse on Grantor. When the context requires, singular nouns and pronouns include the plural, � .r � y� ��"�y�,. � � �., �' _ � -: .._— _.._�� s�r esnd Lee Grimes Jud�th� Mae Grimes STATC 0� TEXF�S COUNTY OFDENTON This instrument was acknowledged before me an the 21st day of September, 2005 by Raymond Lee Grimes and wife, Judith Mae Grimes, �6t11EtJff v� '�� I� ��+r��JZ��i, �., f�,�'r �� fiVi A� i/�7 �� r. . �� s ��'° "' �� 4�, `� ; i"i;:.l.1iti �" .�ti w. AFTER RECORDING, RE7URN TO: ` � �J �;;• � w �t.;':`' FIDELITY NATIONAL TITLE " " 2507 �uail Run Road Corinth, Texas 76208 ��--�-., � �„�m�...�-.a.w �P� �� Notary &'� , �, �;..��t�i �r��i��rx�s PREPARED IN 7HE OFFICES OF: FONTAINE b. LAUGHLIN, A7TORNEY 2507 fluail Run Road Coeinth, Texas 76208 TRACT 1: EXHIBIT "A" GF No.: 5900526-X-0059 BEING all that certain tract or parcel of land situated in the Gideon Walker Survey, Abstract Number 1330, Denton County, Texas and being part of a 106.087 acre tract of land described in a Deed from Wesley G. Stewart to Raymond Lee Grimes and wife, Judith Mae Grimes as recorded in Volume 1411, Page 654 of Deed Records in Denton County, Texas and being more particularly described as follows: BEGINNING at a capped 1/2" iron rod set for the Southwest corner of the herein desc�ibed tract from which the Southwest corner of said 106.087 acre tract bears North 87 degrees 34 minutes 03 seconds West 2322.73 feet; THENCE North 1120.43 feet to a capped iron rod set in the South line of a tract of land described in a Deed from the City of Dallas to the U.S.A. as recorded in Volume 411, Page 194 Deed Records, Denton County, Texas for the Northwest corner of the herein described tract; T!-fENCE North 69 degrees 28 m�nutes 03 seconds East with the South line thereof a distance of 355.03 feet to a Corps of Engineers monument stamped P-239-W for corner; THENCE North 82 degrees 18 minutes 29 seconds East with said South line to a capped 1/2" iron rod set for corner, THENCE South 67 degrees 43 minutes 00 seconds East with said South line a distance of 59.28 feet to a capped 1/2" iron rod set for the Northeast corner of the herein described tract; THENCE South 24 degrees 04 minutes 25 seconds West a distance of 698.80 feet to capped 1/2" iron rod set for the beginning of a curve a curve to the left with a radius of 1440.00 feet a chord bearing ' and a distance of South 13 degrees 04 minutes 19 seconds West; 549.62 feet; THENCE Southwesterly, along said curve an arc distance of 553.01 feet to a capped 1/2" iron rod set for corner; THENCE South 02 degrees 00 minutes 54 seconds West a distance of 69.76 feet to a capped 1/2" iron rod set in the South line of said 105.087 acre tract for. the Southeast corner of the herein described tract; THElVCE Narth 87 degrees 34 rninu�es 03 seconds West a distance of 209.86 feet to the POINT OF BEGINNING and enclosing 10.100 acres of land more or less. NOTE: THE COMPANY DOES NOT REPRESENT THAT THE ACREAGE AND/OR SQUARE FOOTAGE CALCULATIONS ARE CORRECT. . � TRACT 2: (Easement Estatel BEING all that ��r��i� tract �r p�rc�� af I�nd s�t��ted ir� tf�re G�ci��n it�'�fker Survey, �bstract Number 1330, Denton ��u��y, �f°r;x�� rd k�eir�� rt c�� p�,�i�i� �cr� ��t �a� land described in a deed from Wesley G. Stewart tQ f�,ay��c�r� ��+� �r�� r�d w;��, Ju��t�� k�ae �rer�1�� as recorded in Volume 1471, Page 654 of D��d I��c�r�s in �er�tvn �c�uraty, T�xa�� nd ta�ir�c� r��r�� p�rticularly described as follows: BEGINNING at a 3/4" iron rod found for the Southwest corner of said 105.087 acre tract and the East line of Swisher Road; THENCE North 01 degrees 43 minutes 54 seconds East with the East line of said Road a distance of 30.00 feet to a point for corner; THENCE South 87 degrees 34 minutes 03 seconds East a distance of 2321.83 feet to a point for GF No.: 5900526-X-0059 corner; . THENCE South a distance of 30.03 feet to a capped 1/2" iron rod set for corner; � TNENCE North $7 d�grees 34 minutes 03 seconds West with the South line of said 105.0£37. acres a distance of 2322.73 feet to POINT OF BEGINNING and enclosing 1.600 acres of land more or less. NOTE: THE COMPANY DOES NOT REPRESENT THAT THE ACREAGE AND/OR SQUARE FOOTAGE CALCULATIONS ARE CORRECT. Denton County Cynthia Mitchell I County Clerk IDenton, TX 76202 �a zoas oo� z3si 3 Instrument Number: 2005-123913 As Recorded On: October 05, 2005 Warranty Deed Parties: GRIMES RAYMOND LEE To Comment: *� Examined and Charged as Follows: ** Warranty Deed 28.00 Total Recording: 28.00 Billable Pages: 4 Number of Pages: 4 ************ THIS PAGE IS PART OF THE INSTRUMENT **********"`" Any provision herein which restricts the Sale, Rental or use of the described REAL PROPERTY because of color or race is invalid and unenforceable under federal law. File Information: Document Number: 2005-123913 Receipt Number: 232384 Recorded Date/Time: October 05, 2005 11:37A User / Station: J Morris - Cash Station 1 Record and Return To: FIDELITY TITLE WILL CALL DENTON TX 76202 �,�� :� r�;�, � �'�r� . �i � ��, `y {� � � � � " �'�' �, �� --�.._�,u:�'p�k .��_��;_,,�, THE STATE OF TEXAS } COUNTY OF DENTON } I hereby certlfy that thls Instrument was FILED In the Flle Number sequence on the date/tlme printed heron, and was duly RECORDED In the Offlclal Records of Denton County, Texas. '(�A�I'rkdl. County Clerk Denton County, Texas N�TICB OF CONFIDBNTIALITY RIGI3TS: IF YOU ARE A NATURAL PBRSON, YOU MAY REMOVE OR STRIKB ANY OF THE FOI.LUWING INFORMATION I�ROM TH1S INSTRUMENT BBFORB IT IS FILED FOR RECORD IN TNE PUBLIC RECORDS: YO[JR SOC[AL SECURITY NUMB6R OR YOUR DRNER'S C,ICENSS NUMBER. Deed of Trust Terms Date: September _ � � , 2007 Grantor: John R. Polster and Lisa K, Polster, husband and wife Grantor's Mailing Address: John R. Polster and Lisa K. Polster 415 Branco Circle Shady Shores, TX 76208-5107 Denton County Trustee: Fontaine D. Laughlin Trustee's Mailing Address: 2507 Quail Run Drive Corinth, Texas 76208 Denton County Lender: Raymond L. Grimes and Judith Mae Grimes Lender's Mailing Address: Obligation Note 4268 Swisher Road Denton, TX 76208 Denton County Date: September Zg ., 2007 Original principal amount: � Borrower: John R. Polster and Lisa K. Polster Lender: Raymond L. Grimes and Judith Mae Grimes ` Maturity date: September 21, 2027 ` Terms of Payment; As provided in the note. Other Debt: None. Property (including any improvements): 10.10 acres (+/-) in the Gideon Walker Survey, Abstract No.1330, more specificallydescribed in Exhibit A attached hereto and made a part hereof. Prior Lien: None. Other Exceptions to Conveyance and Warranty: Liens described as part of the Consideration and any other liens described in the deed to Grantors as being either assumed or subject to which title is taken; validly existing easements, rights-of-way, and prescriptive rights, whether of record or not; all presently recorded and validly existing instruments, other than conveyances of the surface fee estate, that affect the Property; and taxes for 2005, and subsequent assessments for that and prior years due to change in land usage, ownership, or both. For value received and to secure payment of the Obligation, G�rantors convey the Property to Trustae in trust. Grantors warrant and agree to defend the title to the Property, subject to the Other Exceptions to Conveyance and Warranty. On payment of the Obligation and all other amounts secured by this deed of trust, this deed of trust will have no further effect, and Lenders will release it at Grantors' expense. Clauses and Covenants A. Grantors' Obligations Grantors agree to- 1, keep the Property in good repair and condition; 2. pay all taxes and assessments on the Property before delinquency; 3. defend title to the Property subject to the Other Exceptions to Conveyance and Warranty and preserve the lien's priority as it is established in tlus deed of trust; 4. maintain, in a form acceptable to Lenders, an insurance policy that- a. covers all improvements for their full insurable value as determined when the policy is issued and renewed, unless Lenders approve a smaller amount in writing; , b. contains an 80 percent coinsurance clause; c. provides all-risk coverage; d. protects Leriders with a standard mortgage clause; e. provides flood insurance at any time the Property is in a flood hazard area; and f, contains such other coverage as Lenders may reasonably require; 5, comply at all times with the requirements of the 8Q percent coinsurance clause; 6, deliver the insurance policy to Lenders within ten days of the date of this deed of trust and deliver renewals to Lenders at least fifteen days before expiration; 7. obey all laws, ordinances, and restrictive covenants applicable to the Property; keep any buildings occupied as required by the insurance policy; 9. if the lien of this deed of trust is not a�rst lien, pay or cause to be paid all prior lien notes and abide by or cause to be abided by all prior lien instruments; and 10, notify Lender of any change of address. B. Lenders' Rights 1. Lenders or Lenders' mortgage servicer may appoint in writing a substitute trustee, succeeding to all rights and responsibilitias of Trustee. 2. If the proceeds of the Obligation are used to pay any debt secured by prior liens, Lenders are subrogated to all the rights and liens of the holders of any debt so paid. 3. Lenders may apply any proceeds received under the insurance policy either ta reduce the Obligation or to repair or replace darnaged or destroyed improvements covered by the policy. If the Property is Grantors' prinnary residence and Lenders reasonably determine that repairs to the improvements are economically feasible, Lenders will make the insuranca proceeds available to Grantors for repairs. 4. Notwithstanding the terms of the Note to the contrary, and unless applicable law prohibits, all payments received by Lenders from Grantors with respect to the Obligation or this deed of trust may, at Lenders' discretion, be applied first to amounts payable under this deed of trust and then to amounts due and payable to Lenders with respect to the Obligation, to be applied to late charges, principal, or interest in the order Lenders in their discretion determine. 5. If Grantors fail to perform any of Grantors' obligations, Lenders may perform those obligations and be reimbursed by Grantors on demand for any amounts so paid, including attorney's fees, plus interest on those amounts frorn the dates of payment at the rate stated in the Nota for matured, unpaid amounts. The amount to be reimbursed will be secured by this deed of trust. 6. If there is a default on the Obligation or if Grantors fail to perform any of Grantors' obligations and the default continues after any required notice of the default and the time allowed to cure, Lenders may- a. declare the unpaid principal balance and earned interest on the Obligation immediately due; b. direct Trustee to foreclose this lien, in which case Lenders or Lenders' agent will cause notice of the foreclosure sale to be given as provided by the Texas Property Code as then in effect; and c. purchase the Property at any foreclosure sale by offering the highest bid and then have the bid credited on the Obligation, 7. Lenders may remedy any default without waiving it and may waive any default without waiving any prior or subsequent default. C. Trustee's Rights and Duties If directed by Lenders to foreclose this lien, Trustee will- 1. either personally or by Agent give notice of the foreclosure sale as required by the Texas Property Code as then in effect; 2. sell and convey all or part of the Property "AS IS" to the highest bidder for cash with a general warranty binding Grantors, subj ect to the Prior Lien and to the Other Exceptions to Conveyance and Warranty and without representation or warranty, express or implied, by Trustee; 3. from the proceeds of the sale, pay, in this order- a. expenses of foreclosure, including a reasonable commission to Trustee; b. to Lenders, the full amount of principal, interest, attorney's fees, and other charges due and unpaid; c. any amounts required by law to be paid before payment to Grantors; and d. to Grantors, any balance; and 4. be indemnified, held harmless, and defended by Lenders against all costs, expenses, and liabilities incurred by Trustee for acting in the execution or enforcenient of the trust created by this deed of trust, which includes all court and other costs, including attorney's fees, incurred by Trustee in defense of any action or proceeding taken against Trustee in that capacity. D. General Provisions 1. If Lenders order an appraisal of the Property while a default exists or to comply with legal requirements affecting Lenders, Crrantors, at Lenders'request, agree to reimburse Lenders for the cost of any� such appraisal. If Grantors fail to reimburse Lenders for any such appraisal within ten days of Lenders' request, that failure is a default under this deed of trust. 2. Grantors agree to execute, acknowledge, and deliver to Lenders any document requested by Lenders, at Lenders' request from time to time, to (a) correct any defect, error, omission, or ambiguity in this deed of trust or in any other document executed in connection with the Note or this deed of trust; (b) comply with Grantors' obligations under this deed of trust and other documents; (c) subject to and perfect the liens and security interests of this deed of trust and other documents any property intended to be covered thereby; and (d) protect, perfect, or preserve the liens and the security interests of this deed of trust and other documents against third persons or rnake any recordings, file any notices, or obtain any consents reyuested by Lenders in connection therewith. Grantors agree to pay all costs of the foregoing. 3. If any of the Property is sold under this deed of trust, Grantors must immediately surrender possession to the purchaser. If Grantors fail to do so, Grantors will become a tenant at sufferance of the purchaser, subject to an action for forcible detainer. 4. Recitals in any trustee's deed conveying the Property will be presumed to be true. 5. Proceeding under this deed of trust, filing suit for foreclosure, or pursuing any other remedy will not constitute an election of remedies. 6, This lien will remain superior to liens later created even if the time of payment of all or part of the Obligation is extended or part of the Property is released, 7. If any portion of the Obligation cannot be lawfully secured by this deed of trust, payments will be applied first to discharge that portion. � 8. Grantors assign to Lenders all amounts payable to or received by Grantors from condemnation of all or p�rt of the Property, from private sale in lieu of condemnation, and from damages caused by public works or construction on or near the Property. After deducting any expenses incurred, including attorney's fees and court and other costs, Lenders will either release any remaining amounts to Grantors or apply such amounts to reduce the Obligation. Lenders will not be liable for failure to collect or to exercise diligence in collecting any such amounts. Grantors will immediately give Lenders notice of any actual or threatened proceedings for condemnation of all or part of the Property. 9. Crrantors assign to Lenders absolutely, not only as collateral, all present and future rant and other income and receipts frorn the Property. Grantors warrant the validity and enforceability of the assigmment. Grantors may as Lenders' licensee collect rent and other income and receipts as long as Grantors are not in default with respect to the �bligation or this deed of trust. Grantors will apply all rent and other income and receipts to payment of the Obligation and performance of this deed of trust, but if the rent and other income and receipts exceed the amount due with respect to the Obligation and deed of trust, Grantors may retain the excess. If Grantors default in payment of the Obligation or performance of this deed of trust, Lenders may terminate Grantars' license to collect rent and other income and then as Grantors' agent may rent the Property and collect all rent and other income and receipts. Lenders neither have nor assume any obligations as lessor or landlord with respect to any occupant of the Property. Lenders may exercise Lenders' rights and remedies under this paragraph without taking possession of the Pnoperty. Lenders will apply all rent and other income and receipts collected under this paragraph first to expenses incurred in exercising Lenders' rights and remedies and then to Grantors' obligations with respect to the Obligation and� this deed of trust in the order determined by Lenders. Lenders are not required to act under this paragraph, and acting under this paragraph does not waive any of Landers' other rights or remedies. If Grantors become a voluntary or involuntary debtor in banla-uptcy, Lenders' filing a proof of claim in banlauptcy will be deemed equivalent to the appoinhnent of a receiver under Texas law. 10. Interest on the debt secured by this deed of trust will not exceed the maximum amount of �€��7u��ri�ru� i��t�r�� th�t a��r i�e ��n�r:��t�� f'��, t�l�e��, reserved, chazged, or received under law. Any i�tt�r�� `t� �� i%ai �axi�u�� rr��r�i vv�li l�e �crr�dited on the principal of the debt or, if that has been �p�id, r��iti�de�, �n �n� ��I�r�tic�� c��ri�•�t� �r �5era�itted prepayrnent, any such excess will be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision overrides any conflicting provisions in this and all other instruments concerning the debt. 11. In no event may this deed of trust secure payment of any debt that may not lawfully be secured by a lien on real estate or create a lien otherwise prohibited by law. 12. When the context requires, singular nouns and pronouns include the plural. 13. The term Note includes all extensions, modifications, and renewals of the Note and all arnounts secured by this deed of trust. 14. Grantors represent to Lenders that no part of the Property is exempt as homestead from forced sale under the Texas Constitution or other Iaws. All real estate constituting Grantors' homestead exempt from forced sale under the Texas Constitution or other laws consists of the following: 415 Bronco Circle, Shady Shores, Denton County, Texas, 15. Crrantors agree to fitrnish on Lenders'request evidence satisfactory to Lenders that all taxes and assessments on the Property have been paid when due. 16, If the Property is transferred by foreclosure, the transferee will acquire title to all insurance policies on the Property, including all paid but unearned premiums. 17, Grantors agree to allow Lenders or Lenders' agents to enter the Property at reasonable times and inspect it and any personal property in which Lenders are grante@ a security interest by this deed oftrust. 18. GRANTORS MA.Y FURNISH ANY INSURANCE REQUIRED BY THIS DEED OF TRUST EITHER THROUGH EXISTING POLICIES OWNED OR CONTROLLED BY GRANTORS OR THROUGH EQUNALENT COVBRAGE FROM ANY INSURANCE COMPANY AUTHORIZED TO TRANSACT BUSINESS IN TEXAS. 19. If Grantors transfer any part of the Property without Lenders' prior written consent, Lenders may declare the debt secured by this deed of trust irnmediately payable and invoke any remedies provided in this deed of trust for default. If the Property is residential real property containing fewer than five dwelling units or a residential manufactured home occupied by Grantors, exceptions to this provi�sion are limited to (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the Property; (b) creation of a purchase-money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co-Grantor; (d) grant of a leasehold interest of three years or less without an option to purchase; (e) transfer to a spouse or children of Grantors or between co-Grantors; ( fl transfer to a relative of Grantors on Crrantors' death; and (g) transfer to an inter vivos trust in which Grantors are and remain beneficiaries and occupants of the Property. parties. 20. This deed of trust binds, benefits, and may be enforced by the successors in interest of all 21. If Grantors and Borrowers are not the same person, the term Grantors includes Borrowers. 22. Grantors and each surety, endorser, and guarantor of the Obligation waive all demand for payment, presentation for payment, notice of intention to accelarate maturity, notice of acceleration of maturity, protest, and notice of protest, to the extent permitted by law. 23. Grantors agree to pay reasonable attorney's fees, trustee's fees, and court and other costs of enforcing Lenders' rights under this deed of trust if this deed of trust is placed in the hands of an attorney for enforcement. 24. If any provision ofthis deed of trust is determined to be invalid or unenforceable, the validity or enforceability of any other provision will not be affected. 25. The term Lende� includes any mortgage servicer for Lender. 26. Grantors represent that this deed of trust and the Note are given for the following purposes: The debt evidenced by the Note is in part payment of the purchase price of the Property; the debt is secured both by this deed of trust and by a vendor's lien on the Property, which is expressly retained in a deed to Grantors of even date. This deed of trust does not waive the vendor's lien, and the two liens and the rights created by this deed of trust are cumulative. Lenders may elect to foreolose under either of the liens without waiving the ather or may foreclose under both. Grantors expressly aclrnowledge a vendor's lien on the Property as security for the Note secured by this deed of trust, which represents funds advanced by Lenders at Grantors' request and used in payment of a portion of the purchase price of the Property. This deed of trust does not waive the vendor's lien, and the two liens and the rights created by this deed of trust are cumulative. Lenders may elect to enforce either of the liens �;riih�� v�rrva��; � °l ��~ t� �� enforce both, John��als��r f s .r� �� " Lisa � Polster � , STATE OF TEXAS COUNTY OF DBNTON This instrument was ackn.owledged before me on �.�i� ��, 2007, by John R. Polster and Lisa K. Polster. �;�� `� ROBYN E. SWONGER '� � � MY COMMISSION EXPIRES ��,`� �� ' December 9, 2007' ` �� > , E � � �.; % Notary Pub1 � State of Texas � My commission expires: PREPARED IN THB OFF[CE OF and AFTER RECORDINa, RETURN TO; Fontaine D. Laughlin, Attorney at Law 2507 Quail Run Drive Corinth, Texas 76208 ' � 4 p , . .. " ,..4,„w J , • . e . 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