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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 ``fir -'��••••••••`Y J, �/I ���------- + yi •• • O .� 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 4 i 10 N %toollill� "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.