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20-781ORDINANCE NO. 20-%$1 AN ORDINANCE OF THE CITY OF DENTON, A TEXAS HOME-RULE MUNICIPAL CORPORATION, AUTHORIZING THE ACCEPTANCE OF A CONSERVATION EASEMENT FROM PETRUS INVESTMENT, L.P., A TEXAS LIMITED PARTNERSHIP; AND PROVIDING AN �FFECTIVE DATE WHEREAS, Petrus Investment, L.P., a Texas limited partnership, ("Petrus") is the owner of certain lands in the City of Denton, Denton County, Texas, including 302.94 acres in the J. Taft Survey, Abstract No. 1269, which is generally located at the southwest corner of John Payne Rd. and North Interstate 35 West ("Property"); and WHEREAS, Petrus, in accordance with the terms of other agreements with the City of Denton, a Texas home-rule municipal corporation, ("City"), has placed a conservation easement on 29.125 acres of the Property that contains the area known locally as "Pilot Knob" ("Conservation Easement Area") which is more particularly described in the legal description to the Conservation Easement which is attached as Exhibit "A" and incorporated herein for all purposes; WHEREAS, this Conservation Easement has been declared and established to benefit the general public by preserving and protecting the Conservation Easement Area in perpetuity, however, neither the general public nor the City has been granted a property interest in the Conservation Easement Area; and WHEREAS, this Conservation Easement does provide the general public, in perpetuity, limited access to the Conservation Easement Area; and WHEREAS, the Conservation Easement is intended to encumber the Conservation Easement Area with the restrictions and limitations upon the use thereof which restrictions and limitations upon the use shall be enforced by the City of Denton, a Texas home-rule municipal corporation ("City"), by means of the enforcement rights of the City; and WHEREAS, the City Council finds that it is in the public interest of the City, as Grantee, to accept said Conservation Easement from Petrus, as Grantor; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Section 1. The findings and recitations contained in the preainble of this ordinance are incorporated herein by reference. Section 2. The City Council approves and accepts the Conservation Easement attached as Exhibit "A" and incorporated herein for all purposes. Minor adjustments to the attached Conservation Easement are authorized, such as filling in blanks and minor clarifications or corrections, and any modifications made by City Council in the approval of this ordinance. Section 3. The City Manager, or his designee, on behalf of the City, is authorized to execute the Conservation Easement, attached hereto as Exhibit "A", with Petrus Investment, L.P. Section 4. The City Manager, or his designee, is further authorized to carry out all duties and obligations to be performed by the City under the Conservatian Easement, unless otherwise reserved in the Conservation Easement for Council approval. Section 5. This ordinance shall become effective immediately upon its passage and approval. The motion to approve this ordinance was made by �E/Z,f1/2p ��5��"fj and seconded by ��'S�' ,�,yV/s , the ordinance was passed and approved by the following vote [ � - � ] : Chris Watts, Mayor: Gerard Hudspeth, District 1: Keely G. Briggs, District 2: Jesse Davis, District 3: John Ryan, District 4: Deb Armintor, At Large Place 5: Paul Meltzer, At Large Place 6: Aye Nay Abstain Absent � ✓ ✓ ✓ ✓ ✓ ✓ PASSED AND APPROVED this the 7�� c ATTEST: ROSA RIOS, CITY SECRETARY By: �� _ APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY By: , 2020. CONSERVATION EASEMENT This Conservation Easement is by and between Petrus Investment, LP ("Grantor"), and the City of Denton, a Texas home-rule municipal corporation ("Grantee") and is effective upon recording in the real property records of Denton County, Texas ("Effective Date"). Recitals: 1. Grantor is the record owner of fee simple title to a certain parcel of real property consisting of 29.125 acres located and situated in Denton County, Texas and more particularly described in attached Exhibit "A" (the "Property"). 2. Grantee is qualified to hold a conservation easement as it is an entity empowered to hold an interest in real property under the laws of the State of Texas. 3. The preservation of the Property is desirable as the Property has significant historical, environmental, and scenic value to the parties. 4. It is the intent of this Conservation Easement to assure that the Property will be retained and maintained perpetually in its natural vegetative and hydrologic condition in accordance with both the terms of this Conservation Easement and the conditions documented in the Baseline Documentation Report ("BDR") in the attached Exhibit "B". 5. The purpose of the Conservation Easement includes the following (the "Purposes" or "Conservation Values"), subject to Grantor's Reserved Rights: A. retaining or protecting natural, scenic, or open-space aspects of the Prop�rty; B. ensuring the availability of the Property for trail use by the public; C. protecting natural resources; D. maintaining or enhancing air and water quality; E. maintaining areas of scenic and historical significance; and F. maintaining the Property as documented in the BDR. 6. The following Exhibits are attached to this Conservation Easement and incorporated by reference: A. Exhibit A- Legal Description of the Property; and B. Exhibit B- Baseline Documentation Report. Witnesseth: NOW THEREFORE, for good and valuable consideration from Grantee, the receipt and legal sufficiency of which are acknowledged by Grantor, and in consideration of the covenants, mutual agreements and conditions herein contained, Grantor has TRANSFERRED, BARGAINED, GRANTED, SOLD, CONVEYED, ASSIGNED, SET OVER and DELIVERED, and by these presents does TRANSFER, BARGAIN, GRANT, SELL, and CONVEY, to Grantee a conservation easement on, over, under, across, along and 1 through the Property on the terms set forth herein, together with all other rights reasonably necessary or desirable to accomplish the Purposes and the rights granted under this Conservation Easement, subject to the following terms, reservations, covenants, limitations and exceptions: 1. Duration of Easement. The Conservation Easement shall be perpetual. The Conservation Easement is an easement in gross, runs with the land, and is enforceable by Grantee against Grantor, and Grantor's successors, assigns, lessees, agents, and licensees. 2. Property Description. The metes and bounds legal description of the Property are set forth in Exhibit "A" and incorporated herein by reference. 3. Present Condition of the Property. Subject to Grantor's Reserved Rights, neither Grantor, its agents, assigns, successors, or personal representatives, nor any purchasers, lessees may violate the terms or Purposes of the Conservation Easement. The conditions of the Property are described in the BDR, prepared in accordance with Land Trust Accreditation Commission Guidelines and Land Trust Standards and Practices 118, attached hereto as Exhibit "B", prepared by Grantor and acknowledged by the parties to be complete and accurate as of the date hereof. Both the parties have copies of the BDR. The BDR will be used by the parties to assure that any future changes in the use of the Property will be consistent with the terms of this Conservation Easement. However, the BDR is not intended to preclude the use of other evidence to establish the present condition of the Property if there is a controversy over its use. 4. Prohibited Activities. Any activity on, or use of, the Property in violation of the terms and Purpose of the Conservation Easement is prohibited. The Property shall be preserved as documented in the BDR and is restricted from any development that would violate the Purposes of the Conservation Easement. Without limiting the generality of the foregoing, the following activities and uses are expressly prohibited, restricted, or reserved as indicated hereunder: A. Vegetation: Except for the below, there shall be no clear-cutting of trees on the Property. Grantor may remove diseased, invasive or non-native trees, shrubs, or plants; cut and mow firebreaks and existing road rights-of-way; and remove trees, shrubs, or plants to accommodate maintenance of permitted improvements, including trails or other uses expressly permitted under the terms of this Conservation Easement. Grantor may remove potentially invasive plants from the Property for habitat management purposes consistent with the intent of this Conservation Easement. Except as necessary for activities expressly permitted in this Conservation Easement and with written permission from Grantee, there shall be no farming on the Property. B. Uses: No plowing, residential or industrial activity shall be conducted upon the Property. There shall be no storing or dumping of soil, trash, ashes, garbage, waste, abandoned vehicles, appliances, machinery, or hazardous substances, or toxic or hazardous waste, or any placement of underground or aboveground storage tanks or other materials on the Property that may negatively impact or be detrimental to the Property or to the surface or subsurface waters of the Property. C. Subdivision: The Property may be further divided, subdivided, or partitioned but all such property shall remain subject to the terms of the Conservation Easement perpetually. D. Topography: There shall be no change in the topography of the Property. There shall be no surface mining, filling, excavating, grading, dredging, mining or drilling upon the Property, and there shall be no removing of topsoil, peat, sand, gravel, rock, minerals or other materials from the Property except to construct and maintain permeable surface trails and walkways using natural materials, or restore natural topography or drainage patterns. E. Soil or Water Degradation: There shall be no use of, or the conducting of any activity on, the Property that causes or is likely to cause significant and destructive soil erosion, depletion or pollution of, or siltation on, any surface or subsurface waters of the Property, and there shall be no change to streams on the Property in any manner. There shall be no diking, draining, dredging, channeling, filling, leveling, pumping, impounding, of surface waters. F. Construction: There shall be no constructing or placing of any building, mobile home, asphalt or concrete pavement, billboard or other advertising display, antenna (including, but not limited to, cell, mobile, or otherwise), utility pole, tower, conduit, line, or any other temporary or permanent structure or facility or any other man-made structures on the Property except in connection with the construction, repair, maintenance, or replacement (but not expansion) of the permitted trails and any structures and other improvements located on the Property as of the Effective Date of this Conservation Easement. Grantor shall have the right to maintain, renovate, and repair existing buildings, structures, fences, pens, wells, dams and reservoirs, utilities, soft-surface roads, and other improvements, and in the event of their destruction, to reconstruct any such existing improvement with another of similar size, function, capacity, location, and material. G. Roads: There shall be no construction of roads or concrete sidewalks on the Property; nor any enlargement, widening, improvement or modification to any existing roads, on the Property. Maintenance of existing roads shall be limited to removal of dead vegetation, necessary pruning, drainage improvement or removal of obstructing trees and plants, and/or application of permeable materials (e.g., sand, gravel, and crushed stone) as necessary to correct or prevent erosion. Construction and maintenance of permeable surface trails or walkways using natural materials by Grantor is allowed. H. Waters: There shall be no polluting, altering, manipulating, depleting or extracting of surface (including, but not limited to, ponds, creeks or other water courses) or any other water bodies on the Property, and there shall be no conducting or (to the extent in Grantor's control) allowing any entity or person to conduct activities on the Property that would be detrimental to water purity or that alter the natural water level or flow in or over the Property (including, but not limited to, damming, dredging or construction in any free flowing water body, nor any manipulation or alteration of natural water courses, fresh water lake and pond shores, marshes or other water bodies). I. Vehicles: Use of vehicles shall be limited to access to the site for monitoring, maintenance, fire protection/emergency action, construction of approved permeable trails or other approved activities. Off road vehicular access is expressly prohibited. J. Easements: There shall be no granting or conveying of any easements on, over, under, across, along or through the Property, including, but not limited to, access easements and 3 utility easements conveyed by separate instruments after the Effective Date, other than the following conveyances: I. Grantee has the right of pedestrian ingress and egress to and from, and access on, across, along, and through the Property to access the Property to take such actions which are consistent with the Conservation Easement; and II. The public shall have the right of pedestrian ingress and egress to and from, and access on, across, along, and through the Property on the permeable trails after the same have been completed and such public access will be limited only to the permeable trails. The parties have the option to further document the public's right of access to the permeable trails at a later date. K. Mineral Extraction. There shall be no exploration, development, production, extraction, or transportation of oil, gas or other mineral substances (whether such other mineral substances be part of the mineral estate or part of the surface estate) on, from, or across the Property ("Mineral Activities") except in accordance with this Section provided, however, that this Section does not apply to water, which is addressed elsewhere in this Conservation Easement. I. No Surface Mining. Grantor shall not conduct surface mining by any surface mining methods, including, without limitation, the mining of gravel, sand or caliche. II. No Surface Use. Grantor has the associated rights and retains its interests, if any, in all oil, gas and other mineral substances (whether such other mineral substances be part of the mineral estate or part of the surface estate) in and under the Property; provided, however, it is understood and agreed that, in conducting any Mineral Activities on the Property, Grantor shall not use or occupy any portion of the surface estate of the Property and shall not place any facilities, fixtures, equipment, building, structures, pipelines, rights of way or personal property of any kind or nature whatsoever on the surface of the Property or in the subsurface within the depth interval of 1000 feet below the surface of the Property or on or in any portion thereof. Grantor agrees that all Mineral Activities shall be conducted by directional or horizontal drilling below said subsurface interval from a surface location off the Property, and Grantor hereby waives any rights whatsoever to the use of the surface and said subsurface interval of the Property in connection with any Mineral Activities on the Property. Notwithstanding anything above to the contrary, Grantor shall not be prohibited from conducting exploratory activities that are non-invasive, do not otherwise damage or negatively impact the watersheds or aquifer, and do not significantly impair or interFere with the Conservation Values. To the extent Grantor elects to explore for or extract or exploit any oil, gas or other minerals in or under the Property from a surface location off the Property. Grantor shall use reasonable efforts to minimize any damage or other negative impact on the watersheds or aquifer underlying the Property by such activity. L. Signage: Construction or placement of any signs, billboards, or other advertising displays on the Property is not permitted, except that signs whose placement, number, and design do not significantly diminish the scenic character of the Property may be placed to state the name 4 and address of the Property for purposes of identifying a trail to advertise or regulate permitted on-site activities, to post the Property to control unauthorized entry or use, or to identify the property as being protected by this Conservation Easement. M. Dumping: There shall be no dumping or storing of any material, such as trash, wastes, ashes, sewage, garbage, scrap material, sediment discharges, oil and petroleum by- products, leached compounds, toxic materials or fumes, or any "hazardous substances" (as hereinafter defined). For the purposes of this paragraph, the phrase "hazardous substances" shall be defined as in the federal Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. 9601 et seq.) and/or a substance whose manufacture, processing, distribution in commerce, use, possession, or disposal is banned, prohibited, or limited pursuant to the federal Toxic Substances Control Act (15 U.S.C. 2601 et seq.). N. Hunting. Hunting is not allowed on the Property once the public has access to the permeable trails. O. Other Prohibitions: Any other use of, or activity on, the Property which harms the Conservation Easement granted herein. 5. Rights Reserved to Grantor. A. Existing Uses. The Grantor expressly reserves for itself, its successors and assigns, the right of access to and the right of continued use of the Property for all purposes not prohibited by this Conservation Easement, including, but not limited to, the right to quiet enjoyment of the Property, the rights of ingress and egress with respect to the Property, the right to fence the Property and to prohibit public access thereto, except as otherwise provided herein, and the right to sell, transfer, gift or otherwise convey the Property, in whole or in part, provided such sale, transfer, or gift conveyance is subject to the terms of, and shall specifically reference, the Conservation Easement. Except as may be expressly provided otherwise in this Conservation Easement, this Conservation Easement shall not in any way limit, restrict or in any way affect any property of Grantor other than the Property, including without limitation, any property adjacent to, surrounding or near the Property. The rights conveyed by this Conservation Easement do not constitute a conveyance of a fee interest in the Property, nor of any of the mineral rights or water rights therein and thereunder. The rights retained by Grantor as set forth in this Section 5 are referred to hereinafter as the "Reserved Rights". B. Construction, Maintenance, and Access to Trails. Grantor has the right to construct and maintain permeable trails made of natural materials on the Property. The location of the trails is at the sole discretion of Grantor. Grantor agrees to cooperate with Grantee on location of the permeable trails to allow Grantee to maintain a comprehensive trail system in and around the Property. C. Transfer. The right to sell, give, mortgage, lease or otherwise convey the Property, provided such conveyance is subject to the terms of this Conservation Easement. D. Diseased Trees and Firebreaks. The right to cut, trench, and remove damaged or diseased trees, shrubs, or plants and to cut firebreaks, as required in exigent circumstances. E. Animal and Game Management and Hunting. S i. The right to manage animals and game on the Property, strictly in accordance with applicable city ordinances, game laws and sound wildlife management practices. The use of firearms by Grantor is allowed for this purpose. ii. The right to hunt on the Property until the public has access to the permeable trails. Any such hunting shall be conducted strictly in accordance with Grantee's ordinances and state law. F. Farming and Planting. The right to use existing pastures and grasslands used for grazing, plant such trees, shrubs or grasses on the Property as Grantor may desire from time t� time. Consistent with the terms of this Conservation Easement, Grantor shall have the right to maintain, restore and enhance native plant and wildlife habitat, consistent with best management practices and all applicable laws and regulations governing such practices. G. Livestock. The right to run cattle and horses on the Property. In no event shall the Property be over-grazed. Land is to remain fenced to prevent external cattle and livestock from entering the Property. With the exception of dogs and livestock, there shall be no domestic cats or intentional introduction of exotic wildlife or potentially invasive species on the Property. Livestock introduction is prohibited except as authorized herein. H. Restoration. The right to restore damage caused by natural disasters such as drought, flooding, tornados and fire, to dredge waterways of debris and silt/gravel deposits caused by flooding, to restore soil levels and contours and replace shrubs and trees lost to natural occurrences or disasters with like or improved species. If such damage results in the loss of topsoil, Grantor shall have the right to remove topsoil from other areas of the Property to restore the damage caused bythe natural disaster. I. Erosion Control. The right to control erosion by the planting of grasses or by other means not inconsistent with the purposes of this Conservation Easement. J. Composting, Burning, and Storing of Plant Material. The right to compost, burn (including controlled burning of fields and pastures) or store plant material and vegetative waste generated by permitted activities and uses and the right to store customary waste generated on the Property by permitted activities and uses. K. Leasing. The right to lease all or a portion of the Property for any use permitted under this Conservation Easement, including hunting as limited herein. L. Other Vegetation. Grantor expressly reserves the right to plant, cultivate and maintain, as may be reasonably necessary, various trees, vines, shrubs, grasses, and similar vegetation on any portion of the Property currently utilized as grassland or pastureland. M. Compliance with Zoning and Agreements. Grantor expressly reserves the right to use and improve the Property as necessary to comply with the requirements of any zoning ordinance applicable to the Property, any agreement between Grantor and the City of Denton, and any agreement between Hunter Ranch Improvement District No. 1 of Denton County, Texas and the City of Denton. C� Rights of Grantee. Grantee or its authorized representatives, shall have the right to enter the Property at reasonable times upon notice for the purpose of inspecting the Property to determine if the Grantor or any of its successors and assigns is complying with the terms, conditions, restrictions, and Purposes of the Conservation Easement. 7. Liens and Taxes. Grantor shall keep the Property free of any and all liens, including, without limitation, liens arising out of any work performed for, materials furnished to, or obligations incurred by Grantor. Grantor shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority and shall upon written request by Grantee furnish Grantee with satisfactory evidence of payment. 8. Enforcement. In the event of a breach of this Conservation Easement by Grantor, the Grantee, any third-party or any third�party working for or under the direction of Grantor or the Grantee, the Parties shall be notified immediately. Grantor shall have thirty (30) days after receipt of such notice to undertake actions that are reasonably calculated to correct the conditions constituting the breach. If the conditions constituting the breach are corrected in a timely and reasonable manner, no further action shall be warranted or authorized. If the conditions constituting the breach are such that more than thirty (30) days are required to cure the breach, Grantor shall not be in default hereunder if Grantor undertakes the cure of such breach during the thirty (30) day period following notice of the breach and diligently pursues the cure of the breach to completion. If Grantor fails to initiate such corrective action within thirty (30) days or fails to complete the necessary corrective action, the Grantee may enforce the Conservation Easement by appropriate legal proceedings, including an action for damages, injunctive and other relief after mediating the dispute. Notwithstanding the foregoing, the Grantee reserves the immediate right, without notice, to obtain a temporary restraining order, injunctive relief or other appropriate relief if the breach of any provision of the Conservation Easement is materially impairing or would irreversibly or otherwise materially impair the benefits to be derived from the Conservation Easement. Grantor and the Grantee acknowledge that under such circumstances, damage to the Grantee would be irreparable and remedies at law will be inadequate. The rights and remedies of the Grantee provided hereunder shall be in addition to, and not in lieu of, all other rights and remedies available to Grantee in connection with the Conservation Easement. Any forbearance or failure on the part of the Grantee to exercise its rights in the event of a violation shall not be deemed or construed to be a waiver of Grantee's rights hereunder. Nor shall forbearance or failure to enforce any covenant or provision hereof discharge or invalidate such covenant or provision or any other covenant, condition, or provision hereof or affect the right to the Grantee to enforce the same in the event of a subsequent breach or default. Nothing contained in this Conservation Easement shall be construed to entitle the Grantee to bring any action against Grantor for any injury to or change in the Property, or for any violation of any covenant or provision of this Conservation Easement, resulting from any prudent action taken in good faith by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to life, damage to property or harm to the Property resulting from any of such causes. Grantor shall not be responsible for, or required to, remediate any conditions or damage not caused by Grantor, including damage caused by the public or other third parties. Except in the case of an emergency, neither party shall take any action to institute a legal proceeding until the parties have conducted a full day mediation with a mutually acceptable mediator in Dallas, Denton, or Tarrant County. Duration. The burdens ofthis Conservation Easement shall run with the Property and shall be enforceable against Grantor and alf future interests in and to the Property in perpetuity. Grantor agrees 7 that the future transfer or conveyance of any interest in or to the Property shall always be subject and subordinate to the terms, conditions, restrictions and purposes of the Conservation Easement and a reference to this Conservation Easement shall be included in each instrument of transfer or conveyance of any interest in or to the Property from and after the Effective Date. . 10. Construction and Maintenance of Permeable Trails. A. Grantor shall construct permeable trails in and through the Property for use by the public and the same shall be completed within twelve (12) months after final plats on fifty (50) percent or more of the property adjoining the Property have been filed in the Real Property Records, Denton County, Texas. Grantor will cooperate with Grantee regarding the location of the trailheads for the permeable trails. B. Grantor shall be responsible for the maintaining the permeable trails it constructs in and through the Property. 11. General Provisions. A. Notices. Any notice, request for approval, or other communication required under this Conservation Easement shall be sent by registered or certified mail, postage prepaid, to the following addresses (or such address as may be hereafter specified by notice pursuant to this paragraph): To Grantor: To Grantee: B. Severability. In the event any provision of this Conservation Easement is determined by the appropriate court to be void and unenforceable, all remaining terms shall remain valid and binding. C. Conservation Easement Binding. The terms, covenants, and conditions of this Conservation Easement shall be binding upon and shall inure to the benefit of Grantor, Grantee and their respective executors, administrators, heirs, legal representatives, successors and assigns. Notwithstanding the foregoing, Grantee may assign (i) this Conservation Easement, or (ii) any rights or interests in this Conservation Easement, with the prior written approval of Grantor which shall not be unreasonably withheld. D. Warranty. Grantor warrants, covenants, and represents that it owns the Property in fee simple, and that Grantor either owns all interests in the Property which may be impaired by the granting of the Conservation Easement or that there are no outstanding mortgages, tax liens, encumbrances, or other interests in the Property which have not been expressly subordinated to the Conservation Easement. E. Subsequent Transfers. Grantor agrees to incorporate the terms of this Conservation Easement by reference in any deed or other legal instrument that transfers any interest in all or any portion of the Property. Grantor agrees to provide written notice of any transfer at least thirty (30) days prior to the date of the transfer. The parties agree that the terms of the Conservation Easement shall survive any merger of the fee and easement interests in the E3 Property or any portion thereof and shall not be amended, modified or terminated without the prior written consent and approval of the parties. F. Assignment or Transfer. The parties recognize and agree that the benefits of the Conservation Easement are in gross and assignable by the Grantee upon notice and consent by Grantor; provided, however, that the Grantee hereby covenants and agrees, that in the event it transfers or assigns the Conservation Easement, the organization receiving the interest will be a qualified holder under state law acceptable to Grantor. The Grantee further covenants and agrees that the terms of the transfer or assignment will be such that the transferee or assignee will be required to continue in perpetuity the conservation purposes described in this Conservation Easement. G. Obligations of Ownership. Grantee shall not be responsible for any costs or liability of any kind related to the ownership, operation, insurance, upkeep, or maintenance of the Property, except as expressly provided herein. Nothing herein shall relieve the Grantor of the obligation to comply with any federal, state, or local laws, regulations and permits that may apply to the Property in connection with the exercise by Grantor of the Reserved Rights. H. Extinguishment. If changed conditions render impossible the continued use of the Property for the conservation purposes as contemplated by this Conservation Easement, the Conservatior� Easement may only be extinguished, in whole or in part, by judicial proceeding in any court of competent jurisdictian. I. Eminent Domain. Whenever all or any part of the Property is taken in the exercise of eminent domain to substantially abrogate the restrictions imposed by this Conservation Easement, the parties shall join in appropriate actions at the time of such taking to recover the full value of the taking, and all incidental and direct damages due to the taking. J. Proceeds. The Conservation Easement constitutes a real property interest immediately vested in Grantee. If all or a portion of the Property is sold, exchanged, or involuntarily converted following an extinguishment of all or any portion of the Conservation Easement, or following the exercise of eminent domain, Grantee shall be entitled to the fair market value of the Conservation Easement. The parties stipulate that the fair market value of the Conservation Easement shall be determined by multiplying the fair market value of the Property unencumbered by the Conservation Easement by the ratio of the value of the Conservation Easement as of the Effective Date to the value of the Property (without deduction for the value of the Conservation Easement) at the time of this grant. The values as of the Effective Date and as referenced in this Section 9(I) shall be the values used, or which would have been used, to calculate a deduction for federal income tax purposes, pursuant to Section 170(h) of the Internal Revenue Code of 1986, as amended (whether eligible or ineligible for such a deduction). Grantee shall use its share of any proceeds in a manner consistent with the purposes of the Conservation Easement. K. Failure of Grantee. If at any time Grantee is unable or fails to enforce the Conservation Easement, or if Grantee ceases to be a qualified grantee, and if within a reasonable period of time after the occurrence of any of such events, Grantee fails to make an assignment of its interest pursuant to the Conservation Easement, then Grantee's interest shall become vested in another qualified grantee in accordance with and as provided by an appropriate and final, non- appealable proceeding in a court of competent jurisdiction to which Grantor is a party. L. Amendment. This Conservation Easement granted herein may be amended, but only in a writing signed by the Parties hereto; provided, however, that such amendment does not affect the qualification of the Conservation Easement or the status of the Grantee under any applicable laws, is consistent with the conservation purposes of this Conservation Easement granted herein. M. Statutory Conservation Easement. The parties expressly agree and understand that this Conservation Easement is created under, and will be interpreted according to, Chapter 183 (Conservation Easements) of the Texas Natural Resources Code. N. Re-recording. The Grantee is authorized to record or file any notices or instruments appropriate to assuring the perpetual enforceability of this Conservation Easement and Grantee may re-record this instrument at any time as may be required to preserve its rights in this Easement. O. Captions. The captions herein have been inserted solely for convenience of reference and are not a part of this Conservation Easement and shall have no effect upon construction or interpretation. P. Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. Q. Reasonableness Standard. The parties shall follow a reasonableness standard and shall use their best efforts to make any determinations that are necessary or are contemplated to be made by them either separately or jointly under this Easement in a timely manner and shall cooperate with one another and shall take all other reasonable action suitable to that end. R. Controlling Law. The interpretation and performance of this Easement shall be governed by the laws of the State of Texas. S. Venue. The parties acknowledge and agree that any and all disputes arising out of, or relating to, this Conservation Easement will be brought, heard, and determined exclusively in Denton County, Texas. Both parties consent to venue in such courts and waive and relinquish any right to assert that any action instituted by the other party in any such court is in the improper venue or should be transferred to a more convenient forum. T. Further Assurances; Cooperation. After the Effective Date, the parties shall each execute and deliver such documents and take such other actions as shall be necessary to carry out the Purposes of the Conservation Easement. Each party eovenants and warrants that it shall, whenever and as often as it shall be reasonably requested to do so by the other party to the Conservation Easement, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, any and all such further documents and instruments as may be 10 necessary and proper in order to effectuate the intent and purposes of the Conservation Easement. U. Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement, all of which are merged herein. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment that complies with paragraph L. V. Effective Date. The parties intend that these restrictions take effect on the day and year this Easement is recorded in the Denton County Official Records. TO HAVE AND TO HOLD the Conservation Easement for the purposes herein described, subject, however, to the matters herein set forth and to all matters of record with respect to the Property, unto Grantee, its successors and assigns, forever; and Grantor does hereby bind itself, its successors and assigns to warrant and defend the Conservation Easement and the rights granted herein, unto Grantee, its suecessors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Grantor, but not otherwise. [SIGNATURES TO FOLLOW ON NEXT PAGE] 11 IN WITNESS WHEREOF, the Grantor and Grantee have executed this document on the dates listed below. STATE OF TEXAS COUNTY OF DALLAS § § § PETRUS INVESTMENT, L.P., Grantor a Texas limited partnership By: PMC Management, L.P., a Texas limited partnership, its general partner By: Hillwood Development Company, LLC, a Texas limited liability company, its general partner � = �I/1,.:�<<1. ' ►, .. ., . „ . , , � ,� This instrument was acknowledged before me on March �, 2020 by /tit •7horn� /11os4n° �V P on behalf of Hillwood Development Company, LLC. as General Partner of PMC Management, L.P., general partner of Grantor Petrus Investment, L.P. �.�``AVP��., SHANNON SUSAN DEAR � �CP...., g i�� :i :�'•`c�,c Notary Public, State of Texas �'� �Q �P= Comm. Expires 01-22-2022 � T•....•�+�. '��;,°„;o�� Notary ID 10935492 �`��it-�.nc.-��-� Notary Public, State of Texas My Commission Expires: �' � a-� a a. 12 CITY OF DENTON, Grantee � By: U � " — � G !i�"�fo�l�2R��7 , ity � Ordinance No.f20-� �u� ATTEST: ROSA RIOS, CITY SECRETARY i , _�.�_� -- APPROVED AS TO FORM: AARON LEAL, CITY ATTORNEY 13 , und� authority of EXHIBIT A LEGAL DESCRIPTION DESCRIPTION OF A CONSERVATION EASEMENT Being a tract of land situated in the J. Taft Survey, Abstract Number 1269, Denton County, Texas and being a portion of that certain tract of land described by deed to Petrus Investment, L.P. in Document Number 1998-117450, Real Property Records, Denton County, Texas and being inore particirlaz�ly described by metes and bounds as follows: COMMENCING at a THENCE to the POINT OF BEGINNING; THENCE S 70°57'OS"E, 118.23 feet; THENCE S 51°44'43"E, 86.75 feet; THENCE S 26°3T 29"W, 62.16 feet; THENCE S 37°44'S7"W, 91.64 feet; THENCE S 18°27'31"E, 32.27 feet; THENCE S 09°23'S0"E, 29.68 feet; THENCE S 58°04'09"E, 50.51 feet; THENCE S 02°18'41"W, 28.16 feet; THENCE S 85°20'44"E, 70.16 feet; THENCE N 50°43'S0"E, 62.90 feet; THENCE S 74°35'19"E, 72.93 feet; THENCE S 81°28'S2"E, 165.40 feet; THENCE S 52°39'23"E, 101.75 feet; THENCE S 21°13'25"W, 125.90 feet; THENCE S 34°12'S4"E, 66.23 feet; THENCE S 62°19'08"E, 182.38 feet; THENCE S 37°29'36"E, 172.11 feet; Peloton Job No. HWR18008 TrackingNo. TBD ALLIANCE February 26, 2020 C:\USERS\CHAMILTON�DESKTOP\IiWR18008_EAI.DOCX Page 1 of4 THENCE S 64°2T 00"E, 71.11 feet; THENCE S 22°45'39"W, 36.56 feet; THENCE S 42°51' 12"E, 41.54 feet; THENCE S 09°59'S8"E, 154.54 feet; THENCE S 51 °57'34"E, 26.46 feet; THENCE S 12°17'23"E, 32.62 feet; THENCE S 12°06'25"W, 37.91 feet; THENCE S 66°41'15"W, 36.38 feet; THENCE N 88°46'S5"W, 40.67 feet; TAENCE S 20°24'21"W, 206.25 feet; THENCE S 80°30'36"W, 45.66 feet; THENCE S 62°19'S3"W, 56.59 feet; THENCE S 50°19'S5"W, 185.32 feet; THENCE S 26°46' 16"W, 78.29 feet; THENCE S 43°19'13"W, 134.42 feet; THENCE S 78°21'31"W, 47.24 feet; THENCE S 85°08'34"W, 115.45 feet; THENCE N 44°OT52"W, 128.20 feet; THENCE N 66°46'28"W, 127.49 feet; THENCE N 52°56'31"W, 159.22 feet; THENCE N 44°53' 19"W, 170.88 feet; THENCE N 28°11'33"W, 149.95 feet; THENCE N I S°26'S5"W, 153.04 feet; Peloton Job No. HWR18008 TrackingNo. TBD ALLIANCE February 26, 2020 C:\USERS\CHAMILTON�DE SKTOP\H WR1800 8_EA 1. DOCX Page 2 of 4 THENCE N 03°18'20"W, 280.53 feet; THENCE N 20°48' 14"E, 338.96 feet; THENCE N 12°51'42"E, 289.48 feet; THENCE N 32°10' 13"E, 189.06 feet to the Paint of Beginning and containing 1,268,680 square feet or 29.125 acres of land more or less. Peloton Job No. HWR18008 TrackingNo. TBD ALI.IANCE February 26, 2020 C:\USERS\CHAMILTON�DESKTOP\IIWR18008_EAI.DOCX Page 3 of4 0 500 1 000 GRAPHIC SCALE IN FEET "THIS �OCIIYENT WAS PREPAREO UNOER 22 TAC 663.21� UOES NOi REFLECT THE RESULTS OF AN ON iHE GROUNO SURYEY. ANO LS NOT i0 BE USED TO CONVEY OH ESTABLISH INTERESiS LN FEAL PROPERTY ExCEPT iHOSE RIGHTS ANO INTERESTS INPLIED OR ESTABLISHED BY iHE CFEAiI�N OR RECONFIGURATION OF THE 60UNOARY OF THE POLITICAL SIIBOIVISION FOR WHICH IT WAS PREPAREO." "INTEGRAL PARTS OF THIS �OCUYEN�" I. OESCRIPiION T. E%HIBIi BASIS Of BEARING IS THE iEXAS COOROINATE SYSTEM NORTH CENTRAL ZONE 4202. NA� 83. S�v�1�69 J • -�� - �� Ll L44 �L2 L43 JL� L L42 L10 /L12 � L13 L9 L14 L15 L16 �L17 �L18 L 19� L20 L21 PETRUS INVESTMENT 9 L a P41 29, 125 Acres L22 DOCUMENT# 1998-117450 �23 RoPeRoDoC<Te L40 ---L24 i �� L39 L27 L26 L38 L28 L30 L29 L37 L31 L36 L32 L35 L34 L33 "Preliminary, this document shall not be N recorded for any purpose and shall not o . o be used or viewed or relied upon as a � final survey document" 22 TAC 663e18C o Todd A, Bridges, RPLS 4940 ° Date� 2/ 26/ 2020 �.x�{IB�� r 0 n OF A � CO�VS�R�V.�t��ON �.�LS��VI�N� � � SITUATED IN THE Jo TAFT SURVEY9 �::::: DENTON COUNTY 9 TEXAS �PELOTON ° I'I'' LAND SOLUTIONS 9800 HILLWOOD PARKWAY, SURE 250 �OB # HWR18008 DRAWN BY: SS FORT WOftTIi, TEXAS 76177 PH.# 817-5623350 •�i�use�=_•c�omf itn��C•�.=.ki�n•.iiWR1P�]B_��i.agr CHECKEDBY: DATE:02/21/2020 PAGE#40F4 f.•r-*�..It 2/26/2020 10� 14: 16 ��M EXHIBIT B BASELINE DOCUMENTATION REPORT � E L�TQ N L A N D 5 O t U T 1 O N 5 Baseline Documentation Report Hunter Ranch - Pilot Knob Canservat�an Easement CORPORATE OFFICE 9800 Hiliwood Pkwy. Suite 250 Forf Worth, Texas, 76177 817.562.3350 TBPLS 10177700 Introductian This report was prepared by Peloton Land Solutions, Inc. and provides a baseline documentation report for a portion of Hunter Ranch called Pilot Knob (the "Property") located in the City of Denton, Denton County, Texas. This baseline information described in this report was conducted for the anticipated conveyance of a conservation easement on the property. Dates of 5ite Visifis: February 25, 2020 Propertv Ownershia Owner: Petrus Inv, LP Address: 3000 Turfle Creek Boulevard Dallas, TX 75219 Name of Proposed Conservation Easement Area: Pilot Knob Leaal Descriptions: A portion of Tract 1, J. Taft Survey, Absfract 1269, City of Denton, Denton County, Texas Total Acres: +/- 29 acres Jurisdiction: City of Denton Upland Habitat Environmentally Sensitive Area Directions to Propertv: • Go south from Denton on Interstate Highway 35W to fhe Farm-to-Market Road (FM) 2449 exit (Exit 82). • Go west on FM 2449 for approximately 0.7 miles to Jahn Paine Road and go south. • Continue south of John Paine Road for approximatefy 1.5 rniles to the entrance driveway for Hunter Ranch. Description of Properfv General Description: Hunter Ranch is located on the Denton West, Texas 7.5-minute United States Geological Survey (USGS) Qvadrangle map. The conservation easement area (Pilot Knob� is an irregular-shaped, approximate 29-acre area roughly 0.25-mile-wide (west to east) and Q.30-mile-long (north to �OPc �._:.•� .. _iO ; n333' 9: ? ��<_ •IE��S HEiGTO:S::.AiLJ fC7$A Page 2 south) in southwestern Denton County, Texas, within the city limits of the City of Denton. The properfy is located approximately 0.3 miles southwest of where John Paine Road crosses over Interstate Highway 35W. See Attachment A, Exhibrts 1 through 3 for general location maps. Geologv/Soils According to the Bureau of Economic Geology's Sherman Sheet of the Geologic Atlas of Texas, the property is underlain by (Attachment A, Exhihit 4): • Grayson Mari and Main Street Limestone undivided (Kgm} - Grayson Marl, mostly marl, light-greenish gray, weathers to grayish-ye(fow. Thin interbeds of limestone near top, gray, nodular, slightly sandy, fossiliferous. Thickness of Grayson Marl in Texas ] 5 to 60 feet. Main Street Limestone, yellowish-gray, light-brown, weathers to dull grayish-yellow, coarse- grained, well-drained, thick-bedded, some interbedded thin marl. Thickness of Main Street Limestone 10 to 20 feet. • Woodbine Formation (Kwb) - Undivided south of Cooke Counfiy; in Cooke and Gra�son Counties and in Oklahoma, subdivided into four units; Templeton Member (Kwt), Lewisville (Kwl), Red Branch Member (Kwr), and Dexter Member (Kwd). The NRCS for Denton County has mapped two (2) separctte soil units within the property (Attachmenf A, Exhibit 5). • Soil Symbol # 13 - Birome-Rayex-Aubrey complex, 2 to i 5 percent s)opes A gently sloping to moderately steep soils of this complex are on convex ridges. Abovt 33% of this complex is Birome soils, about 32% Rayex soils, about 29% Aubrey soils, and about 6% other soils. Birome soils have a slightly acid, brown fine sandy loam surface layer about 8 inches thick. Birome soifs are moderately deep and well drained. Permeability is slow, runoff is rapid, and available water capacity is low. The hazard of water erosion is severe and available water capacity is very low. The hazard of water erosion is severe. Rayex soils have a neufral, brown fine sandy loam surface layer about 7 inches thick. These soils are shallow and well drained with rapid runoff. They have moderately slow permeability, available water capacity is very low, and hazard of water erosion is severe. Aubrey soils have a slightly acid, brown fine sandy loam surface layer about 8 inches thick. These soils are wel! drained, and permeability is slow. Runoff is rapid resulting in severe erosion hazard. Available water capacity is low. Water seeps to the surface during periods of excess rainfall. The soils in this complex pre used for pasture and urban development. They are not suitable for crops. Large stones, shallow rooting depth, and sloping topography are major limitations. Potential for pasture is low. The soils are svited to bermudagrass (Cynodon dactylon), but the steep slopes, large stones, and limited available moisture are difficult fo overcome. The soil complex has a low potential for rangeland. Management needs include proper stocking, controlled grazing, and brush management. Potential for recrea�ion and wildlife is medium. F:.J.�cT V.'ORT� J FR;StQ I At;S7tN �;A4 VEGRS �ELOTONLARlP.�OM Page 3 • Soil Symbol #36 - Gasil fine sandy loam, 3 to 8 percent slopes This soil is deep, genfly sfoping to sloping on compiex ridges and side slopes. Typically, the surface layer is neutraf, brown fine sandy loam about 9 inches thick. This soil is well drained, runoff is slow, and permeability is moderate. Available water capacity is high and hazard for erosion is severe when slopes are bare. This soil is easily worked and response to fertilizer is good. This soil is used mainly for pasture and its potential for this use is medium. This soil is well suited to common and improved bermudagrass. Some areas are in native stands of post oak (Quercvs stellata) with an understory of greenbriar (Smilax bona-noxj and range grasses. The potential for rangeland is medium. Management needs include proper stocking and controlled grazing. Potential for recreational development is high. Slapes are a limitation when using this soil as a playground. Potential for wifdlife is high. Grain and seed crops are easily established as food for wildlife. A wide variety of trees and grasses are suited to this soil. Ecoloaical Description: The property is iocated within the Grand Prairie (085X) major land resource areas (MLRA), inJ, Sandstone Hill 37-43 PZ (R084CY192TX), Sandy 37-43 PZ (R084CY193TX), Sandy Loam 37-43 PZ (R084CY194TX}, and Tight Sandy Loam 37-43 PZ (R084CY195TX) Ecological Sites. The Ecological Site Descriptions (ES�) prepared by the USDA Natural Resources Conservation Service (NRCS) and are tied to the individual soif types identified in fhe sail survey. ESD detc�ils choracteristics of the historic plant communify, climax communities, and ecological site interpretations (i.e., livestock and wiidfite food va{ue). One of the capstone components of ESDs are the descriptions of the specific stabfe sfates and the factors that affect individual communities to move from one state to another. The current condition of the property is not described in the ESDs. The current condition is a result of past agricultural activities (i.e. grazing). Currently, this site is used for agricultural production, wifh an emphasis on grazing. Each ESD found within the property described below. • Sandstone Hill 37-43 PZ ESD This site occurs on shaffow soils over hard sandstone. The reference vegetation includes a mosaic of mid and fallgrasses and oak (Quercus sp.) trees with various forbs and legumes. Without periodic fire or brush management, woody canopy cover wiil increase and lead to a significant shift in the plant community. Production is often limited by the shallow soi! resources. Oak Savannah is ider�tifiied as the reference community for this ESD. It represents the historic range of variability in the piant communities with the periodic disturbance of fire and grazing. ft is a masaic of herbaceous plants oak species and woody understory vines and shrubs. The dominar�t irees are post oak and blackjack oak (Qvecus marilandica) with a mixture of talf and midgrasses, forbs and shrubs in the understory ond canopy interspaces. Dom'rnant herbaceous plants include little bluestem, big bluestem, yellow FQRF :*.'ORTH � F?il5�0 � 4U5-1'f�7 � i-._ .£GCS =16TONL:.NO.00:4 Page 4 indiangrass, switchgrass, beaked panicum (Panic�m anceps), purpletop tridens (Tridens flavus), sand lovegrass (Eragrostis trichodesj, and wiidryes (Elymus sp.J. Other grasses include dropseeds, sedges (Carex sp.), ond Scribner's panicum (Dichanthelium oligosanihes var. scribnerianum). Forbs include s�nflowers, Englemann daisy, tickclover (Desmodium sp.J, lespedezas (Lespedeza sp.j, wifdbeans (Strophostyles sp.), yellow sensitive briar, coneflowers (Echinocea sp.), and guara (Guara sp.�. Other woody plants include efms, greenbriar (Smilax sp.), plums, grapes (Vitis sp.j, hawthorn (Crataegus sp.), American beautyberry (Callicarpa americanaj, coralberry (Sumphoricarpos orbicutatus), and Carolina snailseed (Coccufus carolinus). These woody species will increase in ground cover with the absence of fire. Woody canopy in the reference state is complex with some areas having dense oak cdnopy mixed with multiple prairie openings. For planning and management purposes, the average woody canopy in reference condition can be described as less than 40 percent. Wifhout periodic fire or brush management the Oak Savannah will transition to the Closed Canopy Woodland state, which represenfis the sl�iff to a woody dominated plant community with woody canopy exceeding 60 percenf. Trees and shrubs dominate fhe ecological processes on the site and the herbaceous grasses and forbs are limited to shade-tolerant species. There is an abund4nce af leaf fitter build up which furfher limits herbaceous plant germination and producfion. • Sandy 37-43 PZ ESD This site occurs over sandy loam soils on uplands. The reference vegetation includes a mosaic of mid and tallgrasses and oak trees with vorious forbs and legumes. Without periodic fire or brush management, woody canopy cover will increase and lead to a significant shift in the plant community. Oak Savannah is identified as the reference commur�ity tor this ESD. Without periodic fire or brush management the Oak Savannah will transitEon to fhe Closed Canopy Woodland state. Both of these states are described above in t�� Sandstone Hill 37-43 PZ ESD descriptions. The Converted state represents the change in Iand use from rangeland to pastureland. This state is described above in the Claypan 37-43 PZ ES� description. Cultivation of these sites may lead to severe erosion. Depending on slope and farming practices, a significant amount of the A horizon may be eroded from the soit profile. This soil loss results in the transition to the Severely Eroded state. • Sandy Loam 37-43 PZ ESD This sifie occurs over sandy loam soils on uplands and dr4inage ways in the East Cross Timbers. The reference vegetation includes a mosaic of mid to tallgrasses and oak trees -p4s :yn�y�. � cyp5C0 j AUSTiN � LAS 4EGA5 PELOTO:.!!;.�`aD.C^JP.,'r Page 5 with various forbs and legumes. Without periodic fire or brush management, woody canopy cover will increase and lead to a significant shift in the planf community. Oak Savannah is identified as the reference community for this ESD. Without periodic fire or brush management the Oak Savannah will transition to the Closed Canopy Woodland state, The Converfied state represents the change in land use from rangeland to pastureland. Cultivation of these sites may lead to severe erosion. Depending on slope and farming practices, a significant amount of the A horizon may be eroded from the soil profile. This soil loss results in the transition to the Severely Eroded state. A►I of these states are described in the above Claypan 37-43 PZ ESD, Sandstone Hill 37-43 PZ ESD, and Sandy 37-43 PZ ESD descriptions. Tight Sandy Loam 37-43 PZ ESD These sites occur over sandy foam soils that have a significant increase in clay within the subsoil. The reference vegetation includes a mosaic of mid and tallgrasses and oak trees with various forbs and legumes. Without periodic fire or brush management, woody canopy cover will increase and lead to significant shift in the plant community. This site is vulnerable to mesquite invasion. Oak Savannah is identified as the reference community for this ESD. Without periodic fire or brush management the Oak Savannah will transition to the Closed Canopy Woodland stafe. The Converfed state represents the change in land use from rangeland to pastureland. All of these states are described in the above Claypon 37-43 PZ ESD, Sandstone Hill 37-43 PZ ESD, and Sandy 37-43 PZ ESD descriptions. Without brush management this site will transition to the Invasive Woody state, which is dominated by invasive woody plant community with woody canopy exceeding 60 percent. Trees and shrubs such as mesquite, juniper, and honey locust dominant the ecological processes on the site and herbaceous grasses and forbs are limited to shade- toferant species. There is often an incredse in prickly pear and tasajillo. Tonoaranhv and Flood�slain Topography on the property is exceptionally varied. The peak of Pilot Knob extends from near the center of the conservation easement to an approximate height of 840 feet msl (Attachment A. Exhibif 6). Sandstone outcrops are present along Pilot Knob. The lower elevation of the property is 740 feet msl (Attachment A, Exhibif 7j. The steepest portion of the area is along Pilot Knob with slopes greater than 30� along the gradient leading up to the peak of Pilot Knob. Lower elevations of the area exhibited gentle slopes between 0% atid 10%. Slopes increase to between 10% to 20%, leading up to Pilot Knob (Attachment A, Exhibit 8). F�RT Y.'d4FH � FRISGO � AUST{N � L� 5 VEGAS aEt67C)i�:i.AND C�Pr: Page 6 The property transitions to the wesf to nearly levei rangelands, which includes a natural tributary. The tributary is contained FEMA lOQyear floodplain (Zone A) as mapped within Flood Insurance Rate Map (FIRM) 48 i 21 C035G wifih an effective date of Aprif 18, 2011. According fo the FIRM Map, no FEMA floodplain is present within the conservation easement (Attachment A, Exhibit 9). Land Use According to fhe Denton Counfy Appraisal District, the property on which the conservation easement is located was conveyed from the Alex McCutchin Estate to Mr. H.R. Perot in January 1987. The property was then canveyed from Mr. H.R. Perot to Perot Investment Partners LTD in February 1987 and then from Perot Investment Partners LTD to Hillwood-McCutchin LTD in October 1988. Subsequently, Hillwood-McCutchin LTD conveyed the Property to Petrus Inv LP by Limited Warranty Deed on December 30, 1998, as recorded as document 1 998-1 1 7450 in Volume 4246, page 574 of Denton County, Texas records. Anecdotally, it has been noted that Pilot Knob could have possibly been used as a lookout or a signal station by members of loca( Native American tribes, Spanish explorers, American explorers, and the Texas Rangers. It has also been rumored that the noted outiaw Sam Bass reportedly had a hideout iocated at Pilot Knob. However, no evidence has ever been discovered to substantiate this claim. According to fihe Texas Archeologi�af Sites Atlas and the Texas Historic Sites Atlas, no historic or prehistoric archeologicaf sites have been discovered or recorded within the property. Historically, the Property has been in agricultural grazing use and is known as Hunter Ranch. The current usage of fiF�e property is the same as historically and is used principally as pasture and rangeland forcattle. Ranching operations at Hunter Ranch are managed by Hillwood Land and Cattle, which is an award-winning livestock program. Adjacent land uses include agricultural grazing to fhe norfh, west, and south with single-fami(y home sites and agricultural grazing to east across Interstate Highway 35W. Propertv Structures. Develoaments 8 Man-made Features There are currently no structures, developments, or man-made features within the conservation easement area. A narrow dirf pathway extends from lower elevations to near the peak of Pilot Knob on the southside of the conservation easement. An existing open area is situated at the peak of Pilot Knob. Cattle pens and storage buildings for agricultural operations are located southeast of the conservation easement area. Several additional structures adjacent to the conservation easement area are recorded on the 1974 L1SGS topographic map and the 1968 aerial photo but had been demolished and removed by 1996. �.' „'vRSF. 1�R :_� j H.�STitF : LAS '_cGAS P%i0T01�'?..';fi9 tOM Page 7 Hvdroloav The properfy is located in USGS Hydrologic Unit 120301030804 - Middle Hickory Creek (Attachmenfi A, Exhibit 10). No water courses or waterbodies are located within the boundary of the property. The USGS topographic map shows a blue-line stream and two waterbodies adjacent to the western boundary the properfy (Attachment A, Exhibit bj. Additionally, the U.S. Fish and Wildlife (USFWS) National Wetland Inventory �NWI) Map shows two palustrine, unconsolidated bottoms, permanently flooded, �likedlimpounded (PUBHh� water features adjacent to fihe western boundary of the property (Attachment A, Exhibifi 11). Veaetation Endanaered, Threatened, or Rare Plant Species: None observed. Plant Communitv: The plant community within the property is primarily a factor of the soils/geology and its position in the landscape. In addifion to this, the secondary factors affecting the plant community is the agricultural practices (both past and present) implemented on fhe property. The properfy is grazed by cattle, which appears to have been occurring on the property for a long period of time. There are approximately 26 acres of overstory canopy cover within the properfy. Vegetation communities within the property could be characterized in fhree different ways, the peak of Pilot Knob, north facing slope of Pilot Knob, and south facing slope of Pilot Knob. The peak of Pilot Knob is relatively level with less rocky soil surface as observed throughout the remainder of the property. The peak of Pilot Knob has an open overstory canopy that consists primarily of post oak fQvercus ste!lata) and blackjack oak (Qvercus marilandica). The open overstory olfows for more sunlight to penetrate the surface and more a dense understory vegetation to develop. Understory vegetation observed at the peak of Pilot Knob included immature honey locust (G(editsia triacanthos), perennial ryegrass (Lolium perenne), Virginia wildrye (Elymus virginicus), silver bluestem (Bothriochloa Iaguroides), and Texas wintergrass (Nassella IeucotrichaJ. Approximately 60 to 80 percent ground coverwas observed at the peak. The south facing slope of Pilot Knob consists of steep, rocky slopes with over 60 percent of the ground surface covered with leaf litter. Much of the soil surface consists of bare ground, which ranged between 70 to 90 percent. Herbaceous vegetation observed within the understory included cedor sedge (Carex planosfachys), an unidentified fern species, greenbriar (Smilax bona-noxJ, Scriber's panicum (Dichanthelium oligosanthesj, coralberry (Symphoricarpos orbiculatus), meadow dropseed (Sporobolus eompositus), and regrowth of both post oak and blackjack oak. The overstory canopy was dominated by post oak and blackjack oak, with some scattered cedar elm (Ulmus crassifolia), gum bumelia (Sideroxylon tanuginosum), and hackberry �Celtis loevigataj observed. F�RT WD.�T� ' FB,rC� � AffSiti� � LAS YEGAS FEiQ36iY?,'�t�:.CC�;,' �••- : The north facing slope of Pilot Knob also consists of steep, rocky slopes. However, much less leaf litter was observed (between 10 to 40 percent�. Less bare ground was observed ranging from 30 to 50 percent. Herbaceous ground cover consisted of wild carrot (Davcus pusillus), cornsalad (Valerinanella sp.), perennial ryegrass, Virginia wildrye, little bluestem (Schizachyrium scoparium), greenbriar, and Texas wintergrass. The overstory canopy was dominated by post oak, hackberry, gum bumelia, and cedar elm, with few blackjack oaks observed. Observed Wildlife Wildlife observed: • White-tailed deer (Odocoileus virginianus) • Feral pig (Sus scrofa) Since the property has been used for ranching operations, cattle were commonly seen in the area. Animal Species of Conservation Interest: Endangered, threatened, or rare plant species - None observed. General description of habitat: There are three general types of habitat on the Pr�pe�#�: ;l; �russlands ;Icwer �ruirie); (2) savannahs jhardwood tree and shrub mottes and isolated trees in the transition from grasslands; and (3) thick woodlands on sandstone slopes. All the habitats are somewhat impacted by human activity and livestock grazing. 0 fORT WORTH j fR�SCO .�'JST �' � _,__ .c_=5 ?F_C�nFtt:.ND.C6M Page 9 Attachment A Exhibit 1 - Vicinity Exhibit Exhibit 2- Local Area Exhibit Exhibit 3A - 2Q18 Aerial Exhibit Exhibit 3B - 1996 Aerial Exhibit Exhibit 3C - }981 Aerial Exhibit Exhibit 3D - T 968 Aeriaf Exhibit Exhibit 4 - Geologic Exhibit Exhibit 5- USDA Soil Exhibit Exhibit b- USGS Topographic Exhibit Exhibit 7 - Elevation Exhibit Exhibit 8 - Slope Exhibit Exhibit 9- FEMA Floodplain Exhibit Exhibit 10 - HUC Exhibit Exhibit 11 - USFWS NWI Exhibit Exhibit 12 - LIDAR Canopy Exhibit Aftachmen% B Site Photos dctted February 25, 2020 =0C? .._- —r : . cfSCQ ' At�_=.?IN E !AS ScG;S PE:C74At1:,��D.{OV: Page 10 References NatureServe. 2020. NatureServe Explorer: An online encyclopedia of life [web applicationJ. Version 7.1. NatureServe, Arlington, Virginia. Available http:l/explorer.natureser�e.org. Accessed February 19 ,2020. Texas Historical Commission. 2020. Texas Historic Sites Atlas. https://atlas.thc.texas.gov/. Accessed February 18, 2020. Texas State Historical Association. 2020. Handbook of Texas Online. 2020. https://tshaonline.org/handbook/online/articles/rjp19. Accessed February 18, 2020. Texas Parks and Wildlife Department. 2020. Annotated County Lists of Rare Species, Denton County. Texas Parks and Wildlife Department, Ausfin, Texos. Accessed February 19, 2020. Texas Water Developmenf Board (TWDB), Geological Atias of Texas, 1987, https://www.twdb.texas.gov/groundwater/aquifer/GAT/. Accessed February 19, 2020. U.S. Department of Agriculture - Natural Resauree Conservation Service. 2020. Web Soil Survey. http://websoilsurvey.nres.usda.gov/app/HomePage.htm. Accessed February 19, 2Q20. U.S. Department of Agriculture - Natural Resources Conservation Service. 2020. Ecosystem Dynamics fnterpretive Tool (EDIT). https:l/edit.jarnada.nmsu.edu/catalogs. Accessed February 19, 2020. U.S. Fish and Wildlife Service. 2020a. Critical Habitat Portal. htfip://criticalhabitat.fws.gov/. Accessed February 19,2020. U.S. Fish and Wildlife Service. 2020b. Endangered Species Listed for Counties in Texas. http://www.fws.gov/southwest/es/EndangeredSpecies/listsl. Accessed February 19, 202�. FORT s•:CpTH J FRISCO j�USTli`! J LAS YEG :s ...----?g�,�{a'y_�,':p.�g�,: Page 11 Cert'rfications A. Certification of Accuracy - Baseline Preparer In compliance with Treasury Regulation 1.170A-14fg)(5), this natural resource inventory (Baseline Documentation Report) is an accurate representation of the protected property at the time of the execution of the conservation easement. I certify that I am the principa! preparer for this Report based on my field survey occurring on February 25, 2020. 7his Report was completed shortly after my last visit to the protected property. The entirety of this Report is intended to aid in the enforcement of the conservation easement. X L�� 1wn�,%�_ Chris A. Hamilton, Peloton Land Solutions, lnc. Baseline Preparer Qualifications and Experience: Chris A. Hamilton, who prepared this baseline report, is a Certified Wildlife Biologist, ISA Certified Arborist (TX-3918A�, and Certified Stormwater Inspector with 15 years of professional environmental and natural resource experience. Mr. Hamilton holds a Bachelor of Science degree in Wildlife and Fisheries Ecology from Oklahoma State University, an accred�ted institution of higher education. B. Certification of Acceptance - Grantor/Grantee In compfiance with Treasury Regulation 1.170A-14(g)(5), I cerfify that f have read and independently reviewed this natural resources inventory jBaseline Documentation Report) and certify that it is an accurate representation of the protected property at the time of the execution of the conservation easement. I accept and acknowledge that the entirety of this Report is intended to aid in the enforcement of the conservation easement. Since documentation jinformation, exhibits, or photographs) for this Report was prepared in advance of the closing and date of the execution of fihe conservation easement, I further certify that the condition of the protected property as depicted in this Reporf has not materially changed as of the date of this certification. 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SHEET NO. 9 OF 12 Hunter Ranch - Pilot Knob GRAPHIC SCALE N Conservation Easement 0 1��Feet ""�E FEMA Floodplain F�hibif S City of Denton, Denton County, Texas ,'�� ` ° �' ;`' . �� Y , � . . y . 0 � -• . ,.. : K �' 3> �,��. .... .... t�- r . .4rr F ri� . k.�i''' _ � � t ' �-'t_: X ..�-.3 • �.. Legend �Conservation Easement Area Texas DFW FEMA 10D - Year Floodplain Q�jZone A, 100 Year Floodplain C�Zone AE, 100 Year Floodplain Floodway (100 - Year) �Zone AE, 100 Year Floodway , Prepared By: -°}�� PE ��TO N ; jjj�� ..ro sa�u-ioN: i 9800 HILLWOOD PARKWAY, SUITE 250 i FORT W�iTH, TX 76177 PHONE� 617-562-3350 . ( _ .- .-. � ' . . � � + �• . �� _ P i . . �i.. � �. = . -�. �. fe - � -iu. -l�Y-��•; r � .... ` � _ .�.�+�� i - -- s�_La�: .:� . 1 �� .'; . 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