21-2431ORDINANCE NO. 21-2431
AN ORDINANCE AUTHORIZING THE SETTLEMENT OF LITIGATION STYLED CITY OF
DENTON V. ROBERT P. DONNELLY,, CAUSE NO. PR -2015-01099, CURRENTLY PENDING
IN THE PROBATE COURT OF DENTON COUNTY, TEXAS, REGARDING THE
ACQUISITION OF FEE INTEREST REQUIRED FOR THE IMPROVEMENT OF MAYHILL
ROAD AND DETENTION PONDS IN THE TOTAL SETTLEMENT AMOUNT OF FOUR
MILLION ONE HUNDRED THIRTY-THREE THOUSAND FIVE HUNDRED FORTY-ONE
DOLLARS AND NO CENTS ($4,133,541.00); AUTHORIZING THE CITY MANAGER AND
CITY ATTORNEY TO EFFECTUATE THE SETTLEMENT; AUTHORIZING THE
EXPENDITURE OF FUNDS THEREFOR; PROVIDING A SAVINGS CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council approves the proposed settlement in litigation styled City
of Denton v. Robert P. Donnelly, Cause No. PR -2018-01099, currently pending in the Probate
Court of Denton County, Texas in the total settlement amount of Four Million One Hundred
Thirty -Three Thousand Five Hundred Forty -One and no/100 Dollars ($4,133,541.00).
SECTION 2. The City Council authorizes the Interim City Manager and City Attorney,
or their designees, to act on the City's behalf in approving and executing the Settlement Agreement
attached as Exhibit "A" and incorporated herein.
SECTION 3. The Interim City Manager, or designee, is further authorized to execute any
and all other documents necessary and appropriate to effectuate the terms of the settlement, expend
budgeted funds, and to take other actions necessary to finalize the settlement.
SECTION 4. The City Attorney, or designee, is fiuther authorized to execute any and all
other documents necessary and appropriate to effectuate the terms of the settlement and to take
other actions necessary to finalize the settlement.
SECTION 5. The provisions of this ordinance shall govern and control over any
conflicting provisions of previously applicable ordinances. To the extent the previously applicable
ordinances do not conflict or do not apply to the settlement, those Ordinances shall continue in full
force and effect.
SECTION 6. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by IL2�&\ % 5o,n Mail u I r Q- and seconded
by This Ordinance was passed and approved by the
following vote F-7
Aye Nay Abstain Absent
Mayor Gerard Hudspeth: �L
Vicki Byrd, District 1: ✓
Brian Beek, District 2: ✓
Jesse L. Davis, District 3:
Alison Maguire, District 4:
Deb Armintor, At Large Place 5:
Paul Meltzer, At Large Place 6:
PASSED AND APPROVED this the 'L.,� day of2021.
GERARD HUDSPETH, MAYOR
ATTEST:
ROSA RIOS, CITY SECRETARY jj116118f
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APPROVED AS TO LEGAL FORM:
s.
MACK REINWAND, CITY ATTORNEY '•� �iy;''•••••••N•'' P`�•
BY
1)
SETTLEMENT AGREEMENT
Re: City of Denton v. Donnelly, Cause No. PR -2018-01099, Probate Court, Denton
County, Texas (the "Lawsuit")
The City of Denton, a Texas home -rule municipal corporation ("City") and Robert Donnelly
("Donnelly") agree as follows:
I . As used herein, "Property" means the tract of land consisting of approximately 18.969 acres
of land, more or less, and being more fully described in Exhibit "A" attached hereto,
provided, however, "Property" excludes all the oil, gas, and sulphur which can be removed
from beneath the Property, without any right whatever remaining in the owner of such oil,
gas, and sulphur of ingress or egress to or from the surface of the Property for the purpose
of exploring, developing, drilling, pumping, extracting, storing or mining the same.
2. The parties' settlement as reflected in this Settlement Agreement will be effectuated by the
entry of an Agreed Judgment in the Lawsuit (the "A Med Jud ent").
3. The City hereby agrees to pay Donnelly the sum of $4,133,541.00 in full settlement of all
claims and counterclaims in the Lawsuit (the "Settlement Payment") and in accordance
with the terms of this Settlement Agreement.
4. In return for and conditioned on the City's payment to Donnelly of the Settlement Payment,
Donnelly hereby agrees to convey to the City the Property through the entry of an Agreed
Judgment in the Lawsuit (the "Agreed Judgment") by which the City is awarded fee simple
title to the Property and the City is ordered to pay Donnelly $4,133,541.00 in accordance
with the terms of this Settlement Agreement.
5. The Agreed Judgment will be the method by which the ownership of the Property is
transferred to the City. Conditioned on the City's payment to Donnelly of the Settlement
Payment, Donnelly represents and warrants to the City that he has not transferred any
interest in the Property since October 1, 2018 (with the exception of a pasture lease that is
no longer in effect) and that he is the owner of the indefeasible fee simple title to the
Property, subject to: (i) all validly existing easements, rights-of-way, and prescriptive
rights, whether of record or not; (ii) all easements, restrictions, reservations, covenants,
conditions, oil and gas leases, mineral severances, and all other encumbrances of any kind
presently of record in the Official Public Records of Denton County, Texas; and (iii) all
matters that would be shown by a current survey of the Property, including without
limitation any discrepancies, conflicts, or shortages in area or boundary lines and any
encroachments or overlapping of improvements, and visible and apparent easements and
encumbrances not appearing of record. DONNELLY MAKES NO
REPRESENTATIONS OR WARRANTIES TO THE CITY ABOUT THE
CONDITION OR SUITABILITY OF THE PROPERTY. THE CONVEYANCE OF
THE PROPERTY BY THE AGREED JUDGMENT WILL BE TREATED AS A
TRANSFER OF THE PROPERTY ON AN "AS -IS, WHERE IS" BASIS.
89896.11
6. The Agreed Judgment will provide that the Agreed Judgment resolves all claims and
counterclaims in the Lawsuit and that all parties will bear their own costs and attorneys'
fees. The City and Donnelly will submit a proposed form of Agreed Judgment consistent
with this Settlement Agreement to the Court on or before November 3, 2021.
7. The City represents and warrants that it has deposited into the registry of the Court the sum
of $2,620,000.00 (the "Deposited Funds"). The Agreed Judgment will provide, and the
City agrees, that the Deposited Funds will be released and paid to Donnelly in partial
satisfaction of the Settlement Payment. The City agrees that the City will make no claim
to the Deposited Funds. The City further agrees that if the Deposited Funds released to
Donnelly are less than $2,620,000.00, then the City, in addition to the Additional Payment
(as defined below), will immediately pay to Donnelly the difference between
$2,620,000.00 and the amount of Deposited Funds released to Donnelly.
S. In addition to the release and payment of the Deposited Funds, the Agreed Judgment will
provide, and the City agrees, that within thirty (30) days of the date of the entry of the
Agreed Judgment, the City will pay to Donnelly in good and present funds the additional
amount of 1,513,541.00 (the "Additional Payment"). The City agrees the Deposited Funds
paid to Donnelly and the Additional Payment will total $4,133,541.00.
9. City of Denton Ordinance No li.aA34roproves this Settlement Agreement and authorizes
the person signing below to sign the Settlement Agreement and take such other and further
actions required of the City under the Settlement Agreement.
AGREED:
.<—ZA4 rll� -.01-4 jo ZVZje
Name: Robert Donnelly
Date: October 2021
AGREED:
The City of Denton
a Texas I home -rule municipal corporation
By: Sara Hensley �.` �'�•..••••••••. IX lee
Title: Interim City Manager V,i� •••'•; F
Date: November 2021
A7T§ r
CITY SECRETARY
CITY OF DONTION, TEXAS
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"l -J7 11ED AS TO FOW:
CITY krf6RNEY
CITY OF 0ENTON, TE
89896.11
EXHIBIT "A"
BEING 19.969 acres of land located in the DAVID HOUGH SURVEY, Abstract No, 646, Demon
County, Texas, being the same tract of land as conveyed to Rozella A. Putnam by tine deed recorded
in Volume 1586, Page 45 of the Deed Records of Denton County, Texas. Said 19.969 acres being
more particularly described by metes and bounds as follows.
BEGINNING at a %a inch iron rod in the centerline ofMayhill Road at the Southeast corner of said
Putnam Tract, also being the Northeast corner of a tract of land conveyed to Andrew Corporation,
by the deed recorded in Volume 912, Page 797, Deed Records of Dertton County, Texas, also
being the Southeast corner of said Hough Survey,
THENCE, South 87 degrees 13 minutes 28 seconds West, 774.08 feet along the North line of said
Andrew Corporation Tract and the South litre of said Hough Survey to a '/z inch iron roil its the
Northeast right-of-way litre of the M K T Railroad,
THENCE, along said Northeast right-of=-way line as follows.
I. North 47 degrees 59 minutes 44 seconds West, 87.69 feet to a'/3 inch iron rod,
2. North 50 degrees 49 minutes 23 seconds West, 101.67 feet to a Y2 inch iron rod,
3. North 53 degrees 56 minutes 53 seconds West, 101.75 feet to a'/i inch iron rod,
4. North 57 degrees 13 minutes 33 seconds West, 67.68 feet to a % inch iron rod at the
Southwest corner of aforesaid Puttnam Tract, also being the Southeast corner of a tract of
lanai conveyed to Don V. Cunningham and wife, by Deed recorded in Volume 653, Page
146, Deed Records of Demon County, Texas,
THENCE, Noilh 00 degrees 00 minutes 04 seconds East, 641.34 feet to a'/z inch iron rod in the
South line of a tract of land conveyed to E. P. Jeske by the deed recorded in Volume 1386, Page
377, Deed Records of Denton County, Texas, also toeing the Northeast corner of said Cunningham
Tract,
THE -'NCE, North 87 degrees 34 minutes 46 seconds East, 1,051.76 feet to a'/2 inch iron rod in the
center line of aforesaid Mayhill Road, also lying in the West survey line of the G. Walker Survey,
Abstract No. 1330,
THENCE, South 01 degrees 36 minutes 49 seconds West, 869,50 feet along said survey line and
the East boundary line of said Putnam Tract to the PLACE Or BEGINNING and containing
19.969 of land, snore or less, LESS AND EXCEPT that certain 1.0 acre tract of land previously
conveyed by Robert P. Donnelly to the City of Denton, Texas by General Warranty Deed on the
22nd day of .1aliuFgy, 1998, which treed is recorded at Volume 4015, Page 1156 of the Real Estate
Records of Denton County, "Texas, leaving 18.969 acres, more or less, remaining in this tract.