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2007-056 ~. S:\Our Documents\Ordinanccs\07\Teas1cy Partners Second Amendment.doc ORDINANCE NO. d.tl07- OFt;; AN ORDINANCE AUTHORIZING THE MAYOR TO APPROVE A SECOND AMENDMENT TO THAT CERTAIN ECONOMIC DEVELOPMENT PROGRAM GRANT AGREEMENT WITH TEASLEY PARTNERS, LTD. TO EXTEND THE DATES OF SUBSTANTIAL COMPLETION OF THE IMPROVEMENTS COVERED BY THE GRANT AGREEMENT FROM DECEMBER 31, 2006 TO JUNE 30, 2007; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, through the passage of Ordinance No. 2004-013 on January 6, 2004, the City Council approved a Economic Development Program under chapter 380 of the Texas Local Government Code ("Chapter 380") to stimulate development of commercial property within the City by the developer, Teasley Partners, Ltd., ("Developer"); and WHEREAS, to effectuate the program for Economic Development under Chapter 380 ("Program"), the Developer and the City entered into an Economic Development Program Grant Agreement ("Agreement"); and WHEREAS, that Agreement required the Developer, as a condition of receiving the grant, to substantially complete all the improvements covered by that Agreement by December 31, 2005; and WHEREAS, on January 3, 2006, the City Council approved an Amendment to extend the date of substantial completion of the improvements covered by the grant Agreement to December 31, 2006; and WHEREAS, the Developer has made significant progress on the improvements and expects substantial completion to take place within six months and has requested a second extension of that amount of time on their substantial completion date; and WHEREAS, City Council deems it in the public interest to grant the Developer's request and to amend the Agreement to extend the completion date; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The Mayor, or in case of her absence, the Mayor Pro Tem, is herby authorized to execute a Second Amendment to the Agreement on behalf of the City of Denton substantially in the form of the Second Amendment, which is attached to and made a part of this Ordinance for all purposes. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. . " S:\Our Documents\Ordinances\07\Teasley Partners Second Amendment.doc PASSED AND APPROVED this the (j; d day of ;1);lf(!/!z ,2007. ~~L~ ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: d APP ,VED TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY ~A BY: Page 2 of2 S:\Our Documents\Contracts\07\Teas]ey Partners Second Amendment.doc SECOND AMENDMENT TO THAT CERTAIN ECONOMIC DEVELOPMENT PROGRAM GRANT AGREEMENT WITH TEASLEY PARTNERS, LTD. THIS SECOND AMENDMENT to the Economic Development Program Grant Agreement ("Agreement") by and between Teasley Partners, Ltd. ("Developer") a Texas limited partnership, the City of Denton ("City"), a Texas municipal corporation, executed on the 6th day of January 2004, as amended by First Amendment hereinafter referred to as Agreement. WHEREAS, through the passage of Ordinance No. 2004-013 on January 6, 2004, the City Council approved a Economic Development Program under chapter 380 of the Texas Local Government Code ("Chapter 380") to stimulate development of commercial property within the City by the developer, Teasley Partners, Ltd., ("Developer"); and WHEREAS, to effectuate the program for Economic Development under Chapter 380 ("Program"), the Developer and the City entered into an Agreement; and WHEREAS, that Agreement required the Developer, as a condition of receiving the grant, to substantially complete all the improvements covered by that Agreement by December 31,2005; and WHEREAS, on January 3, 2006, the City Council approved a First Amendment to extend the date of substantial completion of the improvements covered by the grant Agreement to December 31, 2006; and WHEREAS, the Developer has made significant progress on the improvements and expects substantial completion to take place within six months and has requested a second extension of that amount of time on their substantial completion date; and NOW, THEREFORE, in consideration of the mutual conditions and obligations set forth below, the parties agree to amend the Agreement as follows: SECTION I. Section 4 "Program Grant" of the Agreement is hereby amended to read as follows: Section 4. Program Grant. For each month of the Program Grant term, City agrees, subject to the conditions contained in this Agreement, to make a Program Grant installment payment to Grantee on or before thirty days following the City's receipt from the State Comptroller of the Monthly Sales Tax Report indicating sales tax revenue from businesses located on the Property. Monthly Program Grant installment payments shall be calculated as provided in Section 5 below. Tenant Occupancy shall be a condition precedent to the initiation of Program Grant payments. Program Grant payments may be withheld at any time if there S:\Our Documents\Contracts\07\Teasley Partners Second Amendment.doe are delinquent property taxes on the Property and will not be resumed until such delinquency is cured. Notwithstanding anything contained herein to the contrary, the Program Grant installment payments will cease, this Agreement will automatically terminate, and Grantee will refund to the City all Program Grant payments previously made if there is not Substantial Completion of the Improvements by June 30, 2007. SECTION 2. Save and except as amended hereby, all the remaining clauses, sentences, paragraphs, sections and subsections of Agreement shall remain in full force and effect. EXECUTED and effective as of the ~{~ day of 11?t1.reli ,2007, by City, signing by and through its Mayor, or in case of her absence, the Mayor Pro Tern, duly authorized to execute same by action of the City Council and by Grantee, acting through its duly authorized officials. CITY OF DENTON, TEXAS .m~~ ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED TO LEGAL FORM: EDW~'CJTYAT ORNEY BY: TEASLEY PARTNER TD. Glenn Gunte of Teasley Street, LLC, GP of Teasley Partners, Ltd. Page 2 of2