18-650ORDINANCE N0. 18-650
AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO SURRENDER TO BLOOMFIELD HOMES, L.P. THAT CERTAIN
IRREVOCABLE STANDBY LETTER OF CREDIT DATED NOVEMBER 12, 2013, DRAWN
ON TEXAS CAPITAL BANK, N.A. IN THE AMOUNT OF $176,143.93 IN WHICH
BLOOMFIELD HOMES, L.P. IS THE APPLICANT AND THE CITY OF DENTON, TEXAS IS
THE BENEFICIARY AND FURTHER PARTIALLY RELEASING BLOOMFIELD HOMES,
L.P. FROM FINANCIAL OBLIGATIONS CONCERNING THE CONSTRUCTION OF THE
WATER AND WASTEWATER LINES INCLUDED IN THAT CERTAIN LETTER
AGREEMENT DATED DECEMBER 29, 2000 BY AND BETWEEN THE CITY OF DENTON
AND WYNNE/JACKSON LAKES DEVELOPMENT, L.P. AS A SUCCESSOR IN INTEREST;
AND PROVIDING SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, financial obligations were incuned with respect to water and wastewater line
improvements which the City constructed within the Country Lakes Subdivision in accordance
with that certain Annexation Agreement ("Agreement") entered into by and between the City and
Violet Properties Associates, L.P. on the 4`� day of August, 1999, which Annexation Agreement
was executed pursuant to a certain "Compromise Settlement Agreement and Release of All claims"
("Compromise") entered into by and between the City of Denton, Texas and Denton County Fresh
Water Supply District Nos. 1-A and 5 and Violet Properties Associates, LP., executed the same
day, which settled pending litigation entitled City of Denron, Texas v. Denton County Fresh Water
Supply District No. lA and Denton County Fresh Water Supply District No. S, arrd �iolet
Properties Associate, L.P., Cause No. 99-40158-362, in the 362"d Judicial District Court in and for
Denton County, Texas; and
WHEREAS, by a letter agreement dated December 29, 2000 between the City of Denton
and Wynne/Jackson Lakes Development, L.P. ("Wynne/Jackson") ("Letter Agreement"), a
successor in interest of the property subject of the Agreement, Wynne/Jackson posted a letter of
credit with the City on October 1, 2009 in consideration of the cost of the water and wastewater
revenue bond debt incurred by the City for the water and wastewater line construction, which said
letter of credit was released upon conveyance by Wynne/Jackson of the property subject of the
Agreement to DRP Country Lakes, LLC who then became the successor in interest and assignee
of the Agreement on or about June 7, 2010; and
WHEREAS, the property subject of the Agreement was then conveyed to Bloomfield
Homes, L.P. ("Bloomfield") on or about August 29, 2013, who then became the successor in
interest and assignee of the Agreement; and
WHEREAS, in compliance with the Agreement as amended by the Letter Agreement,
Bloomfield provided security regarding the repayment of the debt incurred by the City to construct
the water and wastewater improvements, by providing an Irrevocable Letter of Credit No. LC
1408, which was issued by Texas Capital Bank, N.A. in the amount of $176,146.93 for the benefit
of the City of Denton on November 12, 2013, and which was accepted by the City via Ordinance
2013-347;and
WHEREAS, in compliance with the Agreement as amended by the Letter Agreement,
Bloomfield has caused payments to be made in the form of Living Unit Ec�uivalent Surcharges and
Water/Wastewater Impact Fees on the propei�ty siibject of the Agreement since August 29, 2013;
and
WHEREAS, the water and w�stewater revenue bond maturity occurred on or about January
17, 2017, and Bloomfield has rec�uested thlt it be allowed to recover the letter of credit currently
held by the City; and
WHEREAS, the City Council finds that Bloomfield should be allowed to recover the letter
of credit currently lield by the City, and that Bloomfield should be pactially released fro�n further
financial liability under the Annex�tion Agreement and Letter Agreement except for the
arrangement concernin� payment of tlie Living Unit Equivalent Sui•charges 1nd Water/Wastewater
Impact Fees; NOW THEREFORE,
THE COUNCIL OF THr CITY OP DENTON H�REBY ORDAINSw
SECTION l. The preamble st�ted hereinabove is hereby incorporated into this ordinance.
SECTI�N 2. Tl�e City M�n�ger, or his desi�nee, is hereby authorized to sui•render tlie
letter of credit posted by Bloomfield Homes, L.P. in the amount of $176,143.93; and the Council
authorizes tlle parti�l release of Bloomfield Homes, L.P. fi•om further financial liability under the
Annex�tion Agreement and the Lettec Agreement except for the arran�ement concerning payment
of the Living Unit Ec�uivalent Surcharges �nd Water/W�stewater Icnpact Fees.
SECTION 3. If any provision of this ordin�nce or the application thereof to any person or
circumst�nce is held invalid by any court, such invalidity sliall not affect the validity of tl�e
provisions or applic�tio�ls, and to tllis end the provisions of this ordinance are severable.
SECTION 4. Tllis ordin�nce sh�ll become effective immediately upon its passage and
approval.
PASSED AND APPROVCD this tlie �"'�'���
ATTEST:
J II' ALT� S, CITY S�C C'I'A Y
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BY: � ,��� ��.�„, �"� ��
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APP . ���;C� � TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
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BY: �°��
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d�y of,����•i�, 2018.
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�"l-I�����WATTS, MAYOR