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2004-366OP. OINANCE NO. OOd-Z AN ORDINANCE AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE A REAL ESTATE CONTRACT FOR THE ACQUISITION OF APPROXIMATELY 88.56 ACRES BY PURCHASE, AND APPROXIMATELY 34.89 ACRES BY DONATION FOR A PUBLIC SAFETY TRAINING FACILITY, PARK, AND OTHER FUTURE PUBLIC AMENITIES LOCATED AT THE SOUTHWEST CORNER OF VINTAGE BOULEVARD AND BONNIE BRAE STREET, SAID TRACTS BEING A PART OF THE JAMES EDMONDSON SURVEY, ABSTRACT NO. 401, AS DESCRIBED IN THE DEED TO DENTON-CJW PARTNERS, LTD., RECORDED IN CLERKS DOCUMENT NO. 98- R0038601, DEED RECORDS, DENTON COUNTY TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS, AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas is desirous of entering into a Real Estate Contract with Denton-CJW Partners, Ltd. to acquire approximately 88.56 acres and 34.89 acres of land as more particularly described in that certain Real Estate Contract attached hereto and made a part hereof by reference (the "Contract"); and WHEREAS, the City Council finds that the Contract serves valid municipal and public purposes and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The Contract is hereby approved. The City Manager, or his designee is authorized to enter into the Contract, to make the expenditures provided for therein, and to carry out the City's rights and duties under the Contract. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /~-~ dayof ~~j, 2004. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: '~'~ - Page 2 REAL ESTATE CONTRACT TItIS CONTRACT OF SALE ( the "Agreement") is made to be effective as the Effective Date as hereinafter defined by Denton-CJW Partners, Ltd, a Texas limited partnership (hereinafter referred to as "Seller") and City of Denton, Texas, a home rule municipality, of Denton, Denton County, Texas~ (hereinafter referred to as "Purchaser"), upon the terms and conditions set .forth herein. PURCHASE~ SALE, AND DONATION Seller hereby sells and agrees to convey, and Purchaser hereby purchases and agrees to pay for all ihose certain tracts, lots or parcels of land containing approximately 88.56 acres of land (the "Purchased Property"), as illustrated and described in "Exhibit A" which is attached hereto: and made a part hereof by reference, and Seller agrees to donate to Purchaser for park purposes that certain tract or parcel of land containing approximately 34.89 acres of land (the "Donated Property") also illustrated and described in "Exhibit A" with all rights and appurtenances pertaining to the said Purchased Property and Donated Property, including any right, title and interest of Seller in and to adjacent streets, alleys or rights-of-way, together with any improvements, fixtures, and personal property situated on and attached to such Purchased Property and Donated Property, (all of such real property, rights, and appurtenances being hereinafter referred to as the "Property"), for the consideration and upon and subject to the terms, provisions, and conditions hereinafter set forth. The subject Property is part of a development located in the City of Denton, Texas containing approximately 40i.20 acres of land and consisting of Tracts A-M, as more particularly described and depicted on the Detail Plan .of The Vintage Planned Development PD 139 attached hereto as "Exhibit B" and made a part hereof by reference (the "Development"). Mineral Reservation. The deeds to be delivered at dosing shall provide for a reservation for Seller and Seller's successors and assigns of all oil, gas and other minerals in and under and that may be produced fi-om the Property, except that Seller, its successors and assigns, shall not have the right to use the surface of the Property. no · PURCHASE PRICE Amount of Purchase Price. The total purchase price for the Purchased Property shall be the sum of Two Million Twenty Thousand Dollars and No Cents ($2,020,000.°°) (the "Purchase Price"). The Donated Property shall be donated to Purchaser at closing as part of the park dedication development requirements for the Seller's Development. The Purchase Price will not be adjusted regardless of the final acreage defined in the final survey results. Payment of Purchase Price: The full amount of the Purchase Price shall be payable in hiai~ediatcly available funds at the closing. Earnest Money and Independent Consideration. Within five business days after the date of this Agreement, Purchaser. shall deliver to the Title Company (hereinafter defined), Purchaser's check in the mount of Twenty Thousand and No/100 Dollars ($20,000.00) (the "Earnest Money"). Any and all cash deposited with the Title Company as Earnest Money shall be deposited and held in an interest bearing account for the benefit'of the party entitled thereto pursuant to this Agreement. All Earnest Money delivered hereunder, and all interest (if any) accrued thereon, shall hereinafter be sometimes collectively referred to as the."Eamest Money". In the event that the Title Company does not receive timely deposit and ultimate collection of the Earnest Money, Seller as its sole and .exclusive remedy for such failure may tei'n~ate this Agreement, and no party shall thereafter have any further (~bligation to the other hereunder PURCHASER'S OBLIGATIONS The obligations of Purchaser hereunder to Consunmmte the transactions conteiiiplated hereby are subject to the satisfaction of each of the following conditions any of which may be waived in whole or in part by Purchaser at or prior to the closing. .1. Preliminar~ Title Report. Within ten (10) business days after the Effective Date, Seller, at Seller's sole cost and expense, shall cause the Title Company (hereinafter defined) to issue an owner's title policy commitment covering the Property (the "Commitment") accompanied by copies of all recorded documents relating to easements, rights-of-way, etc., affecting the Property. Purchaser shall give Seller written notice on or before the expiration of ten (10) business' days after Purchaser receives the Commitment that the condition of title as set forth in the Coi,a,,;tment 'is or is not satisfactory. In the event Purchaser states the condition of title is not satisfactory, Seller may, but shall not be obligated to, at Seller's option, - undertake to eliminate or modify all unacceptable matters to the reasonable satisfaction of Purchaser. In the event Seller notifies Purchaser that Seller is unable or unwilling to el'mate or modify any unacceptable matters specified by Purchaser in Purchaser's written notice, Purchaser, at its option may elect to terminate this Agreement at any time up to closing (in which event this Agreement shall be null and void), in which case the Earnest Money will be refunded to Purchaser, grant Seller additional time to cure (but in no event shall the closing date be extended, unless agreed to in writing by Seller and Purchaser), or proceed to .closing. Should proceed to closing Purchaser shall be deemed to have approved all matters not el'mated or modified. 2. Survey. Within ten (10) business days after the Effective Date, Seller, at Seller's sole cost and expense, shall obtain a current survey of the Property, prepared by a duly licensed Texas land surveyor acceptable to Purchaser. The survey shall be staked on the ground, and Shall show the location of all improvements, highways, streets, roads, raikoads, rivers, creeks, or other water courses, fences, easements, and rights-of-way on or adjacent to the Property, if any, and shall 2 contain the surveyor's certification that there are no encroachments on the Property and shall set forth the nmber of total acres comprising thfi Property, together With a metes and bounds description thereof. Following delivery of the Survey, the parties agree to amend this Agreement to substitute the metes and bounds description of the Property set forth on the Survey for the current description set forth herein if the current description is different ~om that set forth in the Survey.' . PurchaSer will have ten (10) business days after receipt of the Survey to review and approve the Survey. In the event the Survey is unacceptable, then PurchaSer shall within the ten (10)- business day period, give Seller written notice of this fact. Seller shall, at Seller's option, promptly undertake to eliminate or modify the unacceptable portions of the Survey to the reaSonable satisfaction of Purchaser. In the event Seller notifies Purchaser that Seller is unable or unwfllip, g to eliminate or modify any unacceptable matters specified by Purchaser in Purchaser's written notice, Purchaser, at its option may elect to terminate this Agreement at any time up to closing (in which event this Agreement shall be null and void), in which case the Earnest Money will be refunded to Purchaser, grant Seller additional tittle to cure (but in no event shall the closing date be extended, unless agreed to in writing by Seller and Purchaser), or proceed to . closing Should Purchaser .proceed to closing Purchaser shall be deemed to have approved all matters not eliminated or modified. 3. Seller's Compliance. Seller shall have performed, observed, and complied with all of the covenants, agreements, and conditions required by this Agreement to be performed, observed, and complied with by Seller prior to or as oftbe closing. REPRESENTATIONS AND WARRANTEES OF SELLER Seller hereby represents and warrants to Purchaser as follows to the current actual knowledge of Seller aS of the closing date which representations and warranties shall be deemed made by'Seller to PurchaSer also as of the closing date: 1. There are no parties in possession of any portion of the property as lessees, tenants at sufferance, trespassers or other parties. Except for .the prior actions of Purchaser, there is no pending or threatened conderanation or similar proceeding or aSsessment or suit, affecting title to the Property, or any part thereof, nor to the current actual knowledge of Seller is any such proceeding or aSsessment contemplated by any governmental authority. 3. Seller has comlJlied with all applicable laws, ordinances, regulations, statutes, roles and restrictions relating to the Property, or any part thereof. 4. To the best of the Seller's current actual knowledge, there are no toxic or hazardous waStes or materials on or within the Property. Such toxic or hazardous waStes or 3 materials include, but are not limited to hazardous materials or wastes as they are defined by the Resource Conservation and Recovery Act (RCRA), as mended, and the Comprehensive 'Environmental Response Compensation and Liability Act (CEKCLA), as amended. Within ten days after the' Effective Date Seller shall provide to Purchaser all enviromental and engineering reports, if any, that it may have care custody and control of relating to the Property. As used in this Agreement, the phrase "current actual knowledge" shall mean awareness of Michael A. Casey, without investigation or inquiry and shall not mean or include imputed knowledge, constructive knowledge, information that is contained in public records or inquiry knowledge. The foregoing representations and warranties shall not sur~ve the closing.. CONDITION OF PROPERTY. A. As Is. Except as is expressly provided for in this agreement, Purchaser is acquiring the property "as' is" and with all faults and without warranties, representations, or guarantees!of any kind, oral or written, expressed or hntJlied, concerning the property including without limitation, 1) the value, condition, merchantability,, habitability, marketability, profitability, suitability, or fitness for a particular use or purpose of the property; 2) the manner or quality of construction of the improvement o~ materials incorporated into the property; and 3) the manner of repair of the property. B. No Representations. Except as is expressly provided for in this Agreement, Purchaser hereby expressly acknowledges that Seller has not made and does not make any representations or warranties as to the physical condition of the property, or any other matter affecting or relating to the herein descn2>ed property (other than the Warranty Deed to be delivered at closing and the representations and warranties and warranties contained in this agreement which shall not survive closing) and that Purchaser has been afforded an adequate opportunity to inspect and evaluate the condition of the property. Purchaser hereby expressly acknowledges that no such representations or warranties have been made and purchaser agrees to accept the herein described property "as is" and "where is" without warranty, express or implied, as to the merchantability of the property or of its fitness for any particular use or purpose. No representations, claims, statements, advertising or promotional activities made or conducted by Seller or Seller's agents or representative shall be binding upon Seller unless the same are expressly set forth in this Agreement or it's Addendum. C. No Reliance. Except as expressly provided for in this Agreement, Purchaser has not relied upon any statements or representations made by Seller and/or any agent of Seller in it'.s decision to acquire the property. 4 D. Sole Reliance. Notwithstanding the representations and warranties of Seller contained in this Agreement, Purchaser further agrees that it will be relying solely on it's inspections, or inspections made by it's agents in making it's decision to acquire· the property pertaining to whether the prope~3t is physically suited for purchaserrs intended uses. · E. Condition Precedent. Purchaser acknowledges that but for the acceptance of the property "as is", Seller would not have executed this Agreement. F. Survival. survive closing. The provisions of this "condition of property" paragraph shall ENTRY A. General Indemnity. In connection with any entry upon the property by Purchaser or Purchaser's representatives, to .the fullest extent' permitted by applicable law, Purchaser and Purchaser's representatives shall indemnify, ·protect, defend, and hold harmless Seller and Seller's Partners, successors, assigns, heirs, legal representatives, employees, agents and contractors (collectively, "Indemnities") for, from and against all liabilities, claims, damages, losses, liens, causes of action, suits,· fines, penalties, costs, charges, judgments, orders, enforcement actions of any kind, and any other costs and expenses in connection therewith (including, but not limited to, court costs, attorneys fees, and expenses and costs of investigation, of any nature, kind or description of any person or entity (collectively, the "Liabilities") directly or indirectly arising out of, caused by or resulting from (in whole or in part)(1 the hewing, inspecting and studies of the property conducted by Purchasei- or Purchaser's representatives (the "Work"), or any part thereof, or 2) violation of any applicable environmental, health, or safety law, role, or regulation applicable· to the property or the work, including property damage, personal injury to Purchaser and/or Purchaser's representatives and any mechanic's or material men~s liens arising out of or related m the ·work. · B. Confidentiality. Purchaser and Purchaser's Representatives shall use their best efforts to keep, and cause their respective employees, agents, contractors and subcontractors to keep confidential all information, materials, records, data, drawings, specifications, engineering and other documents related to the Work (the "Documents") and not disclose the existence of the Documents or their contents to any person or entity, including but not I/m/ted to any federal, state, or local governmental agency, without the express written consent of Seller. Notwithstanding the forgoing Purchaser as a municipality must comply with the Texas Public Information Act, Chapter 552 of the Texas Government Code (the "Act"). Any disclosure required by the Act shall not be deemed a violation of this provision. C. Liens. Purchaser and Purchaser's RepreSentatives shall save and keep the Property free from all mechanics' and material men's liens, and all other liens or claims, legal or equitable, arising out of the Work hereunder. In the event any lien or claim is filed by' anyone claiming by, through, or under Purchaser or Purchaser's Representatives, Purchaser and Purchaser's Representatives shall remove and discharge same within thirty (30) days of the filing thereof. D. Survival. The provisions of this Entry paragraph shah survive closing or any termination of this Agreement. PROVISIONS ]FOR WATER AND SANITARY SEWER FACILITIES Seller is the owner and developer of the Development: The Property ~s depicted in Exh~?oit "B" as Tracts E, K, and L. Tracts A, B, C, D, F, G, H, I, and J as depicted in Exhibit "B"are hereinafter collectively called the "Sellers Remaining Undeveloped Property". There is insufficient capacity in the City's water and sanitary sewer system to serve the needs Created by the Seller's Rema'ming Undeveloped Property and the Property. Therefore, this Agreement is conditioned upon the Seller's .obligations under this Article V, which shall survive closing. The Seller shall design and construct certain sanitary sewer and water facilities as provided for herein: 1. The Public Water and Sewer Improvements. The Seller shall design and construct the following public sanitary sewer and water facilities (the "Public Water and Sewer Improvements"): a. At the sole cost and expense of the Seller a sanitary sewer lif~ station (the "Lift Station".) shall be designed and constructed by Seller of sufficient capacity to meet the needs of the Seller's Remaining Undeveloped Property and the Property in accordance with the City's standards for construction of such facilities (the "Capacity to Serve the Seller's Remaining Property and the Property"). The Lift Station will be located on the Property at the location shown on "Exhibit C" which is attached hereto and incorporated herein by -reference. Should the City require that the Lift Station be oversized above the Capacity to Serve the Seller's Remaining Undeveloped Property and the Property (the "Oversize Cost") the Purchaser will be responsible for the OVersize Cost. b. At the sole cost and expense of the Seller a sanitary sewer gravity line (the "Gravity Line") shah be designed and constructed by Seller of sufficient Capacity to SerVe the Seller's Remaining Undeveloped Property and the Property. The Gravity Line will be located along Roark Branch on the Purchaser's Property at the location shown on "Exhibit C". Should the City require that the Gravity Line be oversized above the Capacity to SerVe the Seller's Remaining Undeveloped Property and the Property the Purchaser will be reSpons~le for the Oversize Cost. 6 At the sole cost and expense of the Seller a sanitary sewer force main (the "Force Main") shall be designed and constructed by Seller of sufficient Capacity to Serve the Seller's Remaining UndevelOped Property and the Property. The Force Main will be located along Bonnie Brae extending from the Lif~ Station to the existing gravity sewer line as. shown on Exh~it C. Should the City require that the Force Main be oversized above the Capacity to Serve the Seller's Remaining Undeveloped Property and the Property the purchaser will be respons~'ble for the Oversize Cost. d. Except for the Purchaser's ParticipatiOn of $32,000.°°, a 24-inch waterline (the "Water Line") shall be designed and constructed at the sole cost and expense of Seller in accordance with the City's standards for construction of such facilities.· The Water Line will be located along Bonnie Brae extending from approximately .US 377 to Vintage Blvd. as shown on "Exhibit D" attached.hereto and incorporated herein by reference. Should the City require that the Water Line be larger than the 24" the Purchaser will be responsible for the Oversize Cost. The Construction Project. 'As stated above the Seller is respons~le for the design' and construction of the Public Water and Sewer Improvements (the "Construction Project") and the cost thereof (the "Construction Costs"). The Purchaser however will pay any Oversize Costs, if any, as stipulated, herein. The Oversize Costs shall be paid to the Seller's contractor in progress payments within thirty (30) days of the Purchaser's receipt of an .invoice for same as .portions of the Construction Project are completed, minus 5% retainage, with the retainage and the balance being paid upon final completiOn and acceptance by the City of the Seller's Construction project ("Final Acceptance"), which paymem schedule shall be provided in the Three-Way Agreement 'hereinafter described. Separate invoices shall also· bo submitted to the Purchaser describing non-oversize portions of the work that have been performed by the contractor on the Construction Project through the date of such invoice which shall be reviewed by the Purchaser within five (5) business days followhag receipt thereof. If the representatives of the Purchaser have any objections to the progress payment being requested in such invoice on the Construction Project, they shall co,~ntmicate such objections, in writing, to the Seller within such five (5) business day period, and the parties shall seek to resolve any questions or issues relative to such invoice promptly. As tO any invoice submitted by the Seller (or its contractor) and for which no conuhent has been received from the Purchaser within five (5) business days following submission thereof, such invoice shall be deemed to be approved by the Purchaser in all respects. If feas~le and if requested by Seller, items in any invoice to which the Purchaser has raised questions Shall be segregated from all remaining items in such invoice, and the approved items shall be submitted for payment out of the escrow hereinat~er descn'bed. A representative of the Purchaser shall deliver all approved invoices to the Project Engineer, who is hereby authorized to submit such approved invoices for payment in accordance with the Escrow Agreement hereinafter defined. The Oversize Costs shall bear no interest unless the Purchaser has not paid Oversize Costs when due, in which case it shall bear interest from that date until paid at the rate of 6% per annum. The Purchaser has available budgeted funds sufficient to pay 7 all of the Oversize Costs. The Construction Costs and Oversize Costs include design and engineering fees for the Public Water and Sewer Improvements. The Construction Project shall be completed within 12 months after the Effective Date of this Agreement. 3. Design of Public Water and Sewer ImproVements/Approval of Plans and Specifications'. The Public Water and Sewer ImproVements shall be designed and constructed in accordance with the City's standard specifications for public works construction, which are incorporated herein by reference.' Prior to awarding the construction contract for the ConStruction Project the Seller shall submit to the Purchaser a complete set of conStruction plans and specifications for the Construction Project for review and approval by the Purchaser. Said Plans and Specifications.shall be completed and approved .by the Purchaser 30 days prior to closing. The construction contract will not be awarded until the Purchaser has given its written approval. The Purchaser will not unreasonably ~vithhold or delay its consent or approvals to the plans and specifications or the construction contract. ConStruction for the Construction Project shall not coimnence until' the Seller. and its contractor enter into the City's standard three-way public works contract between the City and the Seller, and its contractor (the "Three-Way Agreement") and a perfOrmance bond, payment bond and requked insurance certificates are delivered to the City in the substance and form required by the City.. Construction Schedule/Water and Sewer Cost Estimate. A construction schedule and cost estimate for the construction of the Construction Project shall be submitted and approved by the Purchaser 30 days prior to the closing date herein. Escrow Agreement. To ensure completion of the Construction Project, at the closing of this Agreemeni, such portion of the cash Purchase Price deemed adequate to ensure completion of the Construction Project and Purchaser's. Participation as provided in Article VII Section D herein will be deposited in Escrow with Alamo Title Insurance Company, Arlington, Texas (the "Escrow Agent"), which Escrow shall thereafter be disbursed in accordance with an agreement (the "Escrow Agreement"), which shall be in a form approved by the City Attorney, orhis designee. The Escrow Agreement shall include the following provisions: If Seller breaches the Escrow Agreement and fails to cure the breach within fifteen (15) days after written notice of such breach, then the Purchaser, or its designee, shall have the fight to use the remaining funds in escrow to complete construction of Construction Project. Seller or its agent shall provide invoices to the Escrow Agent, which has been approved (or deemed approved) by the Purchaser relative to the portions of the Construction Project that have been completed, and the Escrow Agent shall be authorized to pay each such invoice hmx~ediately out of the funds on deposit in such escrow. Seller shall pay all costs for the Construction Project specified herein, except for · the $32,000~°° City participation~ and the Oversize Costs, notwithstanding that the escrow might be .depleted prior to the completion of the Construction Project. Additionally~ if the Purchaser cures a breach of the Escrow Agreement and ff there are not sufficient funds in escrow to complete the construction of Construction Project,· then Seller shall pay tO the Purchaser, within ten (10) days after receipt of demand for payment, the difference between the cost to complete construction of the Construction Project and the remaining'funds in escrow. ct When the Construction Project is completed and the Purchaser has issued Final Acceptance, if there are still funds in such escrow, the Escrow Agreement shall provide that all such funds shall be hi~nediately released to the Seller and the Escrow Agreement shall terafinate. Diligent Pursuit of Construction of Water and Sewer Facilities. The Seller shall diligently pursue the design and construction of the Construction Project and complete it within 12.months after the Effective Date herein. 7. Prior Easement Acquisition. This Agreement makes the need for constmction of a planned Roark Branch sanitary sewer line that was to extend fi.om Bonnie Brae to US 377 that would serve the Development unnecessary at this time. The Purchaser shall reimburse the Seller up to $40,000.00 for the cost incurred by Seller for the acquisition cost of easements for that sewer line. Seller shall provide sufficient evidence of exact cost of the acquisition of easements for this sewer line, and submit it to the Purchaser for reimbursement. Said reimbursement is in addition to the Purchase Price defined herein and to be included in the settlement costs of this transaction. Engineering services for the Roark Branch Sanitary Sewer project are not a part of this agreement and shall be administered separately by the City of Denton Utility department. 8. Notices. Any notice, demand or other con'ananicatlon required or permitted to be delivered hereunder (other than invoices to be delivered as hereinafter described) shall be deemed received when sent by United States mail, postage pre-paid, certified mail, return receipt requested, addressed to each respective party, or sent via facsimile to the fax number set forth for each party, as follows: If to the City_: With a copy to: The City of Denton, Texas 215 E. McKinney Denton, Texas 76201 Attention: Mr. Howard Martin, Assistant City Manager Fax No.: (940) 349-8596 Edwin Snyder, Esq: Assistant City Attorney City of Denton, Texas 215 E. McKinney Denton, Texas 76201 Fax No.: (940) 382-8596 9 If tO the Seller: With copies to: Denton CJW Partners Ltd. C/O M/chael A. Casey 1170 Corporate Drive West Suite #101 Arlington, TX 76006-6813 Fax No.: (432) 686-1501 Dan A. White Shannon, Gracey, Ratliff & Miller, LLP 1000 Ballpark Way, · Suite 300 Arlington, Texas Fax No. (817) 795-4864 All invoices or notices or other conunanications applicable to the invoices specified in Article V herein shall be delivered to the Purchaser and the Seller at the address set forth for each party as follows: Ifto the City: Mr. Cn'cg Blackstone City of Denton Inspection Group 601 East Hickory Street Suite B Denton, Texas 76201 Fax No.: (940) 349-8951 If to the Seller: With copies to: Denton CJW Partners Ltd. C/O Michael A. Casey t 170 Corporate Drive West Suite #101 Arlington, TX 76006-6813 Any of the parties hereto may change their respective notice addresses for all communications and invoices by a notice delivered in accordance with the terms and conditions of this Article V, Section 8 herein. CLOSING The closing shall be held at the office of Alamo Title InsUrance Company, Arlington, Texas on or before January 31, 2004, or at such title company, time, date, and place as Seller and Purchaser may mutually agree upon (which date is herein referred to as the "closing date"). 10 coNDITIONS PRECEDENT. As conditions precedent to the obligations of Seller and/or Purchaser to dose, the following shall occur contemporaneously with dosing: · Seller and Purchaser shall have mutually agreed to the plans and specifications for the Construction project, the construction contracts relating to the Construction Project, the Construction Costs, the Oversize Costs, the Oversize Agreement, the Three-Way Agreement (including performance and payment bonds), the Construction Schedule/Construction Project Cost Estimate, the Escrow Agreement and all other substantive and ancillary~docments and agreement contemplated Under this Agreement. · Purchaser shall furnish to Seller all pertinent information that Seller may need relating to the Property and Purchaser's intended uses thereof, in order to enable Seller to cause the Construction Project to be designed and constructed. Purchaser and Seller agree that the terms of the City's standard Three-Way Agreement that includes a Development Contract, Performance Bond, and Payment Bond will be executed by Seller at dosing, and shall govern' the responsibilities, obligations, and liabilities of all parties to this transaction with respect to the Constmcti0n Project. The Three-Way Agreement is attached and made a part hereof as "Exhibit E". This disclaimer shall survive dosing. Seller has entered into that certain Oil and Gas Lease effective March 15, 2002 with Lynx Oil Co. Inc. that affects the Property (the "Oil and Gas Lease"). Seller shall cause the Oil and Gas Lease to be amended prior to closing to prohibit lessee's use oftbe surface of the Property. Access to any existing gas well sites on Seller's remaining property as well as any future gas well Sites developed on Sellers remaining property shall be to and from the Seller's Remaining Property. CLOSING REQUIREMENTS 1. Seller's Keqhirements. At the dosing Seller shall: A. Deliver to the Purchaser a duly executed and acknowledged special warranty deed for the Purchased Property and a duly executed and acknowledged donation special warranty deed for the Donation Property for park purposes, conveying good and infeasible title in fee simple to all Of the Property, free and clear of any and all liens, leases, encumbrances, conditions, assessments, and restrictions, ·except for the following: 1. General real estate taxes for the year of dosing and subsequent years not yet due and payable; and 2. Any exceptions approved, or deemed approved by Purchaser pursuant to Purchaser's Obligations (Article III, 1! above) hereofi and 3. Any excePtions approved by Purchaser in writing. B. Deliver to Purchaser a Texas owner's Policy of Title Insurance at Seller,s sole expense, issued by Alamo Title, Arlington; Texas, (the '!Title Company"), m' such title company as Seller and Purchaser may mutually agree upon, in Purchaser's ·favor in the full amount of the purchase 'price, insuring fee simple title for the Purchaser to the Property subject only to those title exceptions listed in Article VII herein, such other exceptions as may be approved or deemed approved by Purchaser,. and the standard printed exceptions contained in the usual form of Texas Owner's Policy of Title Insurance, provided, however: 1. The boundary and survey exceptions shall be mended, except for "shortages in area" if required by Purchaser and if so required, the costs associated with it shall be borne by Purchaser; 2. The exception as to restrictive covenants shall be endorsed '2q0ne of Record"; 3. The exception for taxes shall be linaited to the year of closing and shall be endorsed "Not Yet Due and Payable"; and 4. The exception as to liens encumbering the Property shall be endorsed ''None of Record". C. Deliver to Purchaser possession of the Property. D. Escrow Agreement. Seller shall pay for all of the design, construction costs, and offsite easements required for the Construction Project described in Article V herein, except for the fixed sum of Thirty Two Thousand Dollars .and No Cents · ($32,000.°°) which is the "Purchaser's Participation". To ensure completion of the Seller's Construction Project as outlined in Article V herein, at dosing the Seller shall deposit the full amount of the estimated construction costs (other than the Purchaser's Share for over sizing if applicable) from the proceeds of this transaction in escrow with the "EsCrow Agent". Purchaser will provide funds for Purchaser's Participation at dosing which are in addition to the purchase price of the property described in Article 1I herein. Purchaser's Participation will be paid at closing in i,~ediately available funds and be included in the esCrow account deposit. Which escrow shall thereatier be disbursed in accordance with an agreement (the '~Escrow Agreement"), which shall be in a form approved by the City Attorney, or his designee. The EsCrow Agreement shall include the provisions as outlined in Article V herein. The provisions of this paragraph and the Escrow Agreement shall survive closing. 2. Purchaser's Requirements. Purchaser shall pay the Purchase Price, with the Earnest Money being applied thereto, Purchaser's Partioipati0n~ and reimbursement for the. Roark Branch easement(s) approved by Purchaser, at closing in h~unediately available funds. · 3. Closing Costs. Taxes will be prorated as of the date' of Closing in accordance with Section 26.11 of the Texas Tax Code. In this regard, the Title Company will be responsible for paying directly to the applicable taxing units the Seller's tax liability for the year of closing out of the Purchase Price. All other customary and standard costs and expenses of closing in consuxmt~ating the sale and purchase of the Property not specifically allocated herein shall be paid equally by the Purchaser and Seller herein, except each party will be resp0ns~le for its own attorne3, fees. At closing Seller and Purchaser shall cooperate in segregating the Property fi.om the tax parcels which also include portions of Seller's Remaining Undeveloped Property. 4. Purchaser hereby represents and warrants that the Donated Property will be used for no purposes other than "public purposes", as required by Section 170(c)(1) of the Internal Revenue Code of 1986, as amended (the "Code"). Seller and Purchaser hereby agree to execute, .acknowledge and deliver such additional documents, and take such further actions, as are reasonably necessary in order to effectuate the intentions and agreements expressed in this Agreement; including, but not limited to, an IRS Form 8283 '2qoncash Charitable .Contributions" and a contemporaneous written acknowledgment of the contribution oftbe Donated Property, as required by Section 170(0(8) of the Code and the regulations promulgated there under. REAL ESTATE COMMISSION Seller and Purchaser represent and warrant to each other that neither has retained a broker for this transaction and that there are no broker or real estate fees due as a result of the consmm~ation of this Agreement. · BREACH BY SELLER If Seller fails to fully and timely perform any of its obligations under this Agreement or fails to consummate the sale and donation of the Property for any reason, except Purchaser's default, Purchaser may enforce specific performance of this Agreement or a refund of the Earnest Money, as Purchaser's sole remedies. 13 BREACH BY PURCHASER In the event Buyer fails to consm,,,uate the purchase of the Property, if Seller is not in default under this Contract, Seller will have the right to enforce specific, performance of this Agreement or retain the Earnest Money, as liquidated damages? as Seller's sole remedies. MISCELLANEOUS 1. Assignment of Agreement. Purchaser mxy not assign this Agreement without the express written consent of Seller. 2. Survival of Covenants. Except as otherwise provided herein, any of the representations, warranties, covenants, and agreements of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the closing of the transactions contemplated hereby shall survive the closing and shall not be merged therein. 3. Purchaser will be responsible for the sole cost and expense of any per/meter paving required by the City of Denton Development Code for the development of Purchasers Property. 4. Law and Venue. This Agreement shall be construed under and in accordance with the laws of the State of Texas, and all obligations of the parties created hereunder are performable in ' Denton County, Texas. Exclusive venue for the enforcement or interpretation of this Agreement shall be a court of competent jurisdiction in Denton County, Texas. · 5. Parties Bound. This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns where permitted by this Agreement. 6. Legal Construction. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, said invalidity, illegality, or unenforceability shall not ·affect any other provision .hereof, and this Agreement shall be construed as if the invalid, .illegal, or unenforceable provision had never been contained herein. 7. Prior Agreements Superseded: This Agreement'constitutes the sole and only agreement of the parties and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter, except for any agreements in regard to the Roark Branch Sewer Line. 8. Time of Essence. Time is of the essence in this Agreement. 14 9. Gender. Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held tO include the plural, and vice versa, unless the context requires otherwise. 10. Memorandum of Contract. Upon request of either party, both parties shall promptly execute a memorandum of this Agreement suitable for filing of record. 11. Compliance. In accordance with the ~-equirements of the Texas Real Estate License Act, Purchaser is hereby advised that it should be furnished with or obtains a policy of title insurance or Purchaser.should have the abstract covering the Property examined by an attorney of Purchaser's own selection. 12. Effective Date. The term "Effective Date" means the latter of the dates on which this Agreement is signed by either Seller or Purchaser, as indicated by their signature below. If the · last party to execute this Agreement fails to complete the date of execution below that party's signature, the date the Title Company acknowledges receipt ora copy of this fully executed contract is the Effective Date. IN WITNESS WHEREOF} Seller and Purchaser have executed this contract as follows: SELLER: Denton CJW Partners Ltd. Title Manager, Denton-CJW Management, L.L.C. CITY OF DENTON, TEXAS By: Michael A. C0nduff- J//) City Manager 215 E. McKinney Denton, Texas.76201 15 ATTEST: JENNIFER WALTERS, CITY SECRETARY HERBERT L. PROUTY, CITY ATTORNEY 'TITLE COMPANY ACCEPTANCE AND ACKNOWLEDGEMENT The Title comPany acknowledges receipt of the fully executed Contract on __, 2004. day of TITLE .COMPANY: Nanle: By: Printed Name: Title: Alamo Title Company Arlington, Texas 16 SrJ~f 1'=200' 88.56 +/- ACRES PURCHASE PROPERTY VINTAGE' BLVD ' O0 34.89 +/- ACRES DONATED PROPERTY EXHIBIT C Rcviscd November 25~h~ 2003 4. 5. 6. 10. EXHIBIT E DEVELOPMENT CONTRACT/BOND' INSTRUCTIONS 11. All construction ofpubl~c improvements (i.e., streets, sidewalk, utilitieS, drainage) reqmres development contracts to be executed prior to construction of those improvements and/or filing a plat. A performance bond is required in all cases except whe~ the total amount of the public improvements is less than $~5,000. When improvements wiil be le~s than $15,000, an escrow agreement may be substituted for the performance bond. When public improvements will exceed $25,000, a payment bond is also reqUired. An affidavit of paymant is required on all public improvement construction projects that are no[ covered by a Payment Bond prior to completion and acceptance of/he improvements. A ~opy of the contractors bid or an engineer's estimate must be attached to the bond or escrow to document that the bond or escrow is for a sufficient amount. Co-obligee bonds are not acceptable. The bond forms provided bind the principal and the surety to the City of Denton only. Do not attach co-obligee riders. Please date the documents prior to submitting the documents to the City2 Bonds or escrows are to be dated on the same day or later than the development contract. Also, in the case of Performance or Payment Bonds, the Power of Attorney is to be dated the same day as the bonds..The simplest thing to do is to use the same date in all blanks. Bonds are to be issued by a treasury listed security licensed to do business in the State of Texas. The amount of the bonds must be within the underwriting lirrfits stated in the treasury list for that security. Three-Way development contracts apply when the owner and contractor are separate entities. A Two- Way development contract is used when the owner is also the ge'neral contractor. The development contract, and bond or escrow must be filled out in triplicate. Ali copies of each document must have original signatures. You will want to copy the documents prior to filling them out. Do not make copies after they are filled out and signed. Submit a copy of the contractor's insurance certificate naming the City of Denton as Certificate Holder and listing the City of Denton as an additional insured. The wording in the cancellation section of the certificate must sia~e that said policy shall not be cancelled~ non-renewed~ or. materially changed without 30 days advance written notice being given to the Owner~ except when the policy is being cancelled for non-payment of premium~ in which case 10 days advance written notice is · required. "Endeavoring" to mail written notice is not acceptable. The statement that "failure to mail such notice shall pose no obligation or liability upon the company, its agents, or representative" i~ not to be included on the certificate. Coverage requirements are listed on the last page of this packet. If insurance documents are sent separatel¥~ they must have the TRAKIT ID on the certificate. Submit filled out documents (and four sets of construction plans) to Kevin Roberts, Development Review Engineer, in the Engineering Department of the City of Denton. The address is 221 'N. Elm St., Denton, TX 76201, phone (940) 349-8350. Once the documents have been processed through the City of Denton Legal Department, a pre-construction meeting may be scheduled. Effective December I~, 2003 ' THE STATE OF TEXAS § COUNTY OF DENTON § PROJECT NO. CONTRAC~ TYPE DEVELOPMENT CONTRACT : WHEREAs,. Hereinafter referred to as "Owner", whose business address is is the oWner of real property located in the corporate limits of the City of Denton, or its extraterdto'dal jurisdiction; and. WHEREAS, Owner wishes tO develOP the prOperty and such development must be performed in accordance with the applicable ordinances of the City of Denton, hereafter referred to as. "City"; and WI-LEREAS, as a condition to the beginning of construction of said development, a development contract in accordance with Section 212:071 of the Local Government Code is required to ensure that all streets, water and sewer lines, drainage facilities and other improvements which are to be dedicated to the public, hereafter referred to as "Improvements", are constructed in accordance with the City's specifications, standards and ordinances; and [select applicable provision as follows] WHEREAS, the Owner elects to construct the Improvements without contracting wiffi another party as prhue contractor, in which case the provisions of this contract which refer to "Owner" or "Contractor" shall mean the Owner as named above; or Page 1 of 8 DEVELOPMENT CONTRACT WHEREAS,'the Owner elects to make such h~pmvements hereinafter set forth by contracting with , whose b(~siness address is , hereafter referred to as "Contractor', and WHEREAS, Owner and ContraCtor recognize that the City has an interest in ensuring that the hU'provements subject to this agreement, which will, upon completion and acceptance by the City; become public property, are properly constructed in accordance with the City's specifications and that payment is made therefor; WITNESSETH AS to the improvements to be dedicated to the public, as specified in Exhibit A, attached hereto and incorporated by reference, to be installed and constructed at the Owner, Contractor and City, in'consideration of their mutual promises and covenants contained herein, agree as foilows:' 1. Covenants of Contractor.: Conh-actor agrees as follows:. (a) Specifications. To construct and install the Improvements in accordance with the procedures, specifications and standards contained in Division II and HI of the City's Standard Specifications for Public Works Construction, North Central Texas, as amended, and all addendum's thereto and all other regulations, ordinances or specifications applicable to such Improvements, such specifications, standards, regulations and ordinances Page 2 of 8 (_ · DEVELOPMENT CONTRACT being expressly incorporated h.'erein by reference and being made a part of the agreement as though written herein. Authority of City Engineer~ Inspectlons~ Tests and Orders Owner and Contractors Warranty. That all work on the Improvements shall be performed in a good and Workmanlike manner and to the satisfaction of the City Engineer or his representative. The City Engineer shall decide 'all · questions, which atise as to the quality and acceptability of materials furnished, work performed, and the interpretation of specifications. Guarantee for a period of two years bom the date of final acceptance all work as called for in the speqification and contract documents to be free from defects in materials and workmanship. Owner, contractor and their surety as the case may be shall remedy any such defe~ts in materials and workmanship and pay for any damage to the work or to other ~vork guarantee for a period of two years from the date of frnal acceptance all work as called for in the specification and contract doctnnents to be free bom defects in materials and/or facilities which shall appear within two years bom the date of final completion and acceptance by' the City. The Contractor st/all fnmish the City Engineer or his representative with every reasonable facility for ascertaining whether or not the work performed was in accordance with the specifications applicable thereto. Any work done or materials used without suitable inspection by the' City may be ordered removed and replaced at Contractor's expense. The Owner, the Contractor and their surety on the performance bond shall and do hereby warrant and Page 3 of 8 DEVELOPMENT CONTRACT (c) guarantee fro' a period of two years from the date of final acceptance all work · as called for in the specification and contract documents to be free from defects in materials and workmanship. OWner Contractor and their surety a~ the ·case may be shall remedy any such defects in materials and workmanship and pay·for any damage to the work or to other work or facilities, which shall appear within two years from the date of final acceptance by the City. The City Engineer or his designee shall perform periodic inspections of the work and shall perform a final inspection prior to the work being turned over to the City and an inspection 30 days prior to the expiration of two years from the date of final completion and acceptance of the work by the City. Upon failttre of the Contractor to allow for inspection, to test mat6rials furnished, to satisfactorily repair, remove or replade,:if so.directed, rejected, unauthorized or kondemned work or materials, or to follow any other request or order of the City Engineer or his representative, the City Engineer shall notify the Owner of kuch failure and may suspend ingpections of such work until such failure is remedied, If such failure is not remedied to the satisfaction of the City Engineer, the City shall have no obligation under this agreement to approve or accept the improvements. Insurance TO provide for insurance in accordance with th~ insurance · reqnirements applicable to contractors as pi:ovided for in Item 1.26 of Division I of the Standard Specifications for Public Works Construction, NoAh Central Texas, as amended, the provisions of which are expressly incorporated herein Page 4 of 8 DEVELOPMENT CONTRACT by reference; provided,.bowev, er, for purPose of this provision only, "Owner", as used therein, shall mean {he city of Denton. (d) Means and Methods of Construction. That the means and methods of construction shall'be such as Contractor may choose; subject, however, to the City's right to reject any Improvements for which the means or method of construction does not, in the judgment oft he City Engineer, assure that the Improvements were constructed in accordance with City specifications. (e) Books and RecOrds. All of the Owner's and the Contractor's books and. other records related to the project shall be available for inspection by the municipality. Mutual Covenants of Owner and Contractor, Owner and Contractor mutually agree as follows: (a) Performance Bonds. That if building permits are to be issued for the development prior to completion and acceptance of ail improvements that are to be dedicated to the public, the following security requirements shall apply: (i) The Owner or Developer shall provide a performance bond in an amount not less than the amount necessary to complete the improvements, as determined by the City Engineer, shall be submitted guaranteeing the full and faithful completion of the Improvements meeting the specifications of the City, shall be in favor of the City, and shall be executed by a surety company authorized to do business in the State of Texas in accordance with Chapter 2253 of the Texas Government Code. The Owner and his Contractor shall assign any and all rights in the bond to the City at the time the improvements are transferred to and accepted by the City. (ii) If the cost of completing the improvements at the time building permits are issued is an amotmt of $15,000 or less, as determined by the City Engineer, cash money in the amount necessary to complete Page 5 of 8 DEVELOPMENT CONTRACT (b) (c) the improvements, as determined by the City Engineer, may be deposited with a bank'or escrow agent pursuant to an escrow agreement ensuring completion of the improvements without exception, the City's escrow agreement form shall be used and the · escrow agreement shall remain in effect for 2'years from the date of · final completion and acceptance of the work by the City. Retainage: Final Pavements. [This provision (c) applies only where the. Owner and Contractor are not the same party.] That as security for the faithful completion of the Improvements, Contractor and Owner agrees that the Owner shall retain ten (10) pement of the total dollar amount of the contract price ' until after fmal approval or acceptance of the improvements by the City. The Owner shal} thereafier pay the Contractor the retainage, only a~er Contractor has furnished to the Owner satisfactory evidence including Owners affidavit that all indebtedness has been paid, that all indebtedness connected With the work and all sums of money due for labor, materials, apparatus, fixtures or machinery furnished for and used in the performance of the work have been paid or otherwise satisfied. Encumbrances. That upon completion and approval or acceptance of the Improvements of the City, the improvements shall become the property of the City free and clear of all liens, claims, charges or encumbrances of any kind. If, ai'ce~' acceptance of the Improvements, any claimi lien, charge or enctnnbrance is made, or found to exist, against the Improvements, or land dedicated to the City, to which they are affLxed, the Owner and Contractor shall upon notice by the City promptly cause such claim lien, charge Or encumbrance to be satisfied and released or promptly post a bond with the Page 6 of 8 DEVELOPMENT CONTRACT City in the amount of such claim, lien, charge or encumbrance, in favor of the City, to ensure payment of such claim, lien, charge or encumbrance. (d) Indemnification. The Owner shall and hereby does indemnify, defend and save harmless, the City, its officers, agents and employees from all suits, actions or claims of any character, name and description brought for or on account of any injude~ or damages received as sustained.by any person, persons or property on account of the operations of the Contractor, his agents, employees or subcontractors; or on account 0fany negligent act of fanlt of the Contractor, his agents, employees or subcontractors in construction of the improvements; and shall pay any judgment, with 6osts, which may be obtained against the City growing out of such injury or damage. (e) Agreement Controlling. That the provision of. this agreement shall control 0vei- any conflicting provision'of any contract between the Owner and Contractor as to the construction of the Improvement~. Covenants of City of Denton. That, upon proper completion of the Improvements in accordance with this agreement, the City agrees to accept the Improvements. Venue and Governing Law. The parties herein agree that this contract shall be enforceable in Denton County, Texas, and if legal action is necessary in connection therewith, exclusive venue shall lie in Denton County, Texas. The terms and provisions of this contract shall be construed in accordance with the laws and court decisions of the State of Texas. Page 7 of 8 DEVELOPMENT CONTRACT Successor and Assigns. This comract shall be binding upon and inure to the benefit of the panics hereto, their respective successors and assigns. Executed in triplicate this, day of ,20 OWNER BY: TITLE: ADDRESS: CONTRACTOR BY: TITLE: ADDRESS: ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L. PROUTY, CITY ATTORNEY BY: CITY OF DENTON, TEXAS BY: CITY MANAGER Page 8 of 8 Effective December I~, 2003 PROJECT NO. CONTRACT TYPE THE STATE OF TEXAS COUNTY OF DENTON That PERFORMANCE BOND of KNOW ALL MEN BY THBSE PRESENTS: County, TexaS, hereinafter called Principal and a corPoration organ/zed under the laws of the State of and authorized to do business in the State of Texas, hereinafter called "Snrety", are held and firmly bound unto the City of Denton, Texas, a Municipal Corporation, in Denton County, Texas, hereinafter called "City'.' in the penal sum of ($ ) dollars, lawful money of the Un/ted S~ates, for the payment of which sum well.and truly tO be made we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, and firmly by these presents: THE Condition of this Obligation is such that: WHEREAS, the Principal entered into a certain contract with Owner, dated the day of ,20 , in the proper performance of which the City of Denton, Texas, has an interest, a copy of which is hereto attached and made a part hereof, for the construction of.' Page I of 3 PEILFOP,.MANCE BOND NOW, THEREFORE, if the Principal shall well, truly, and faithfully cause to be performed and fulfilled all of the undertakings, covenants, terms, conditions, and agreements of said Contract in accordance with the Plans, Specifications, and Contract Doctunents during the original term thereof, arid any extension thereof which may be granted, with or Without notice to the suretyl and during the life of any guaranty required under the Contract, which is incorporated, as if Written word for word herein, and'shall also well and truly cause to be performed and fulfilled all the covenants, terms and conditions and agreements of any and all author/zed modifications of said Contract that may hereafter )e made including, without limitation, to remedy and pay for any defects in material' and worlonanship or damage to other work or facilities which shall appear within two ,/ears from the date of fmai completion notice of which modifications to the surety being hereby waived; then this obligation shall be void; otherwise to remain in full force and effect. PROVIDED, furtherl that if any legal action be filed on th/s bond, venue shall lie in Denton .County. AND, that said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the con,'act, orto tt~e work performed thereunder, or the Plans, Specifications, Drawings, etc., accompanying the same shall in anywise affect its obligation on this bond, and it does hereby waive notice of any such Change, extension of time, alteration or addition to the ten-ns of the Contract, or to the work to be performed thereunder. Page 2 of 3 PERFORMANCE BOND IN WITNESS WHEREOF, this instrument is executed in triplicate, each one of which shall be deemed an original, this the day of ,20 pRINcIPAL SURETY BY: BY: ATTORNEY-IN-FACT ATTEST: SECRETARY NOTE: POWER OF ATTORNEY OF SURETY MUST BE ATTACHED. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT DATE OF POWER OF ATTORNEY. CERTIFICATION MUST NOT BE PRIOR TO DATE OF CONTRACTOR BOND. Page 3 of 3 ~ffecfive December I', 2003 PAYMENT BOND THE STATE OF TEXAS § COUNTY OF DENTON § KNOW ALL MEN BY THESE PRESENTS: of the City of County of , and the State of as principal, and PROJECT NO. CONTRACT TYPE That atithorized under the laws of the State of Texas to act as surety on bonds for principa!s, are held and firmly bound unto The City of Denton, OWNER, in the penal sum of dollars ($ · ) for the payment whereof, the said Principal and Surety bind themselves and their heirs, administrators, executors, successors and assigns, jointly and severally, by these presents: WHEREAS, the Principal has entered into.a certain written contract with the Owner, dated the day of 20 __ to which contract is hereby referred to and made a part hereo£as fully and to the same extent as if copied at length herein. NOW, THEREFORE, THE CONDITION OF THIS OBLIGATION IS SUCH, that · i'f the said Principal shall pay all claimants supplying labor and material to him or a subcontractor PAYMENT BOND in the prosecution of the work provided for in Said contract then this obligation shall be void, other~vise to remain in fi. all force and effect; PROViDED~ HOWEVER, that this bond is executed pursuant to the provisions of the Texas Government Code, Chapter 2253 (Vernon, a~ currently amended), and all liabilities on this bond shall be determined in accordance with said provisions to the same extent as if they were copied at length herein. Surety, for value received, stipulates and agrees that no change, extension of time, alteration or addition to the terms of the contract, or to the work performed thereunder, or the plans, specifications, or drawings accompanying the same, shall in any way affect its obligation on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to tt/e terms of the contract, or to the work to be' performed thereunder. Page 2 of 3 PAYMENT BOND IN WITNESS WHEREOF, the said Principal and Surety have signed and sealed this instrument this day of 20 PRiNCIPAL SURETY BY: BY: TITLE: TITLE: ADDRESS: ADDRESS: (SEAL) (SEAL) The name and address of the Resident Agent of Surety is: Page 3 of 3 Effc~tlvc Dcccmbcr I~, 2003 PROJECT NO. cONTRACT TYPE THE STATE OF TEXAS ESCROW AGREEMENT IN LIEU OF PERFORMANCE BOND Development Contract (Improvements of $15,000 or Less) CITY OF DENTON § WHEtLEAS, hereafter referred to as O , has undertaken to develop property within the City of Denton, Texas, Or it's extraterritorial jurisdiction; and WHEREAS, Owner has, pursuant to the ordinances of the City of Denton, Texas, hereafter referred tO as "City", executed a development contract to insure that any and all streets, water and sewer lines, drainage facilities or other improvements which are to be dedicated to the public, hereafter referred to as "Improvements", are constructed and completed in accordance with the specifications, standards and ordinances of the City; and WHEREAS, Owner wishes to receive building permits for said property prior to the completion and approval or acceptance of the Improvements by the City; and WHEREAS, in order to receive such building permits Owner may, where the cost of the Improvements is $15,000 or less, instead of p0sting a performance bond, escrow cash money with a bank as escrow agent in an amount not less than the amount necessary to insure Completion of said Improvements, and to fi.~lly protect the City against defects in materials and workmanship; ESCROW AGREEMENT IN LIEU OF PERFORMANCE BOND . NOW, THEREFORE, oWNER, City and follows: located at , hereafter called "Escrow Agent", agree as Amount. Owner, as a condition to receiving building permits for property shall deposit the sum of ($ ),'in cash money, with Escrow Agent, said sum being in an amount~ as.determined by the City, necessary to insure completion of all improvements which are to be dedicated to the public, and to fully protect the City against defects in materials and worh-nanship; said improvements being more particularly described in that certain development contract dated the day of ,20 , between the City, Owner and Owner's Contractor, to which reference is made herein. 2. Notice of Deposit. No building permits shall be issued by City for the property herein described until Escrow Agent notifies City, in writing, that cash money, in the amount specified herein, has been depo§ited in an escrow account with Escrow Agent. 3. Release Of Funds. Escrow Agent shall not release any or all of the escrowed funds until the City Engineer authorizes the Escrow Agent, in writing, to release such funds' as provided'for herein as follows: (a) the City Engineer shall authorize the release of all the escrowed funds when all improvements are completed and approved in accordance with provisions of the development contract and after 2 years has expired from the date of final completion and acceptance of the work by the City and no defects in materials Page 2 of 5 ESCROW AGREEMENT 1N LIEU OF PERFORMANCE BOND and workmanship have been discovered; the determination, of which shail be made by the City Engineer whose judgment shall be binding on all parties hereto. (b) The City Enginee~ shall infunn the escrow agent, in writing, with a copy to the owner, that the owner is in default under his Development Contract with the City by either failing to complete the improvements in accordance with the terms and conditions of the Development Contract or that the City Engineer has determined that there are defects in materials and workmanship in the improvements. Whereupon, the escrow agent will immediately, without further demand, claim, or notice, release to the City through the City Engineer, the amount necessary, as specified by 'the City Engineer, to remedy the default. 3.' Notices. Any notice to be sent, or required to be sent or given under this agreement shall be sent to the address of the parties hereto, as follows: CITY: OWNER: Engineering Administrator City of Denton ~ City Hall East 601 E. Hickory, Suite B Denton, TX 76205 ESCROW AGENT: Page 3 of 5 ESCROW AGREEMENT IN LIEU OF PERFORMANCE BOND 4. · .Fees. Owner agrees to pay any and 'all fees or Costs charged by the Escrow Agent in connection with this agreement.. 5. Nonliabilitv of Escrow Agent. The Escrow Agent shall have no responsibility except for the safekeeping and delivery of the amounts deposited in the Escrow Account in accordance with this agreement. The Escrow Agent shall not be liable for any act done or omitted to be done under this agreement or in connection with the amounts deposited in ~he Escrow Account except as a result of the Escrow Agent's gross negligence or willful misconduct. If any question, dispute or disagreement arises among any one or more of the parties hereto and/or any other party with respect to the fi. rods deposited in ~he Escrow Account, the p~-oper interpretation of this agreement, the duties of the Escrow Agent hereunder or the ~ rights or. the parties to this agreement, the Escrow Agent shall not be required to act and shall not be held liable for refusal to act until the question.or dispute is settled, and the Escrow Agent has the absolute right at its discretion to do either or both of the following: (a) withhold and/or stop all further perfon'nance under this agreement until the Escrow Agent is sat[stied, by receipt of a written .document in form and substance satisfactory ~o the Escrow Agent and executed and binding upon all interested · . pai-ties hereto (who may include the subscribers), that the question, dispute, or disagreement has been`resolved; o~ (b) file a suit in interpleader and obtain by final judgment rendered by a court of competent jurisdiction, an order binding all parties interested in the mat~er. 6. Successors and Assigns. This agreement shall be binding upon the successors and assigns of the parties hereto. Page 4 of 5 ESCKOVv' AGREEMENT IN LIEU OF PERFORMANCE BOND 7. Venue. The parties hereto agree that if any legal action is necessary in Connection with this agreement exclusive venue shall lie in Denton County,.Texas. IN WITNESS WHEREOF, the said City, Owner, and Escr?w Agent have signed this instrument this day of ., 20 BY: BY: Owner . ESCROW AGENT BY: City Representative Page 5 of 5 ITEM'1.26. INSURANCE:' 1.26.1 CONTRACTOR'S INSURANCE: Without limiting any of the other obligations or liabilities of thc CONTRACTOK, during the term of the contract the CONTRACTOK and each subcontractor at their own expense shall purchase and maintain the herein stipulated minimum imurance with companies duly approved to do business in the State of Texas and satisfactory to the OWNER. Certificates of each'policy shall be delivered to the OWNER, before any work is started, along with a written statement fxom the issuing company stating that said policy !hall not be cancelled, nonrenewed or materially changed without 30 days advance wrkten nodce being given to the OWNER, except when the policy ii being cancelled for nonpayment of premium, in which case 10 days advance written notice is requlr~. Prior to the effective date of cancellation, CONTRA. CTOK must deliver to the OWNER a replacement certificate of insurance or proof of reinstatement. A model Certificate of Insurance is illustrated in Appendix A.2. Coverage shall be of the following types and not less than the specified amounts: (a) (h) worker's compensation as required by Texas law, with the policy endorsed to provide a waiver 0f subrogation as to the OWNER,; employer's liabilily i~aurance of not less than $100,000 for each accident, $100,000 disease-each employee, $500,000 disease-policy limit. Commercial general liability insurance, including independent contractor's liability, Completed operations and contractual liability, covering, but not limited to, the hability assumed under the indemnification provisions of this codtract, fully inaurlng CONTRACTOR`'S (or subcontractor's) liability for injury to or death of OWNEK'S employees and third parties, extended to include personal injury liability coverage with d~mage tO property of third parties, with minimum limits as set forth below: General Aggregate $1,000,000 Products - Components/Operations Aggregate $1,000,000 Personal and Advertising Injury $ 600,000 Each Occurrance $ 600,000 Fire Damage (any one fire) $ 50,000 Medical Expense (any one pers6n) $ 5,000 The policy shall include coverage extended to apply to completed operations, asbestos b~'~ards (if this project involves work with asbestos) and XCU (explosion, collapse and underground) hazards. The completed operations coverage must be maintained for a minimum of one (1) year after fma[ completion and acceptance oftha win'k, with evidence of same filed with OWNER.. (c) Comprehensive automobile and track liability insurance, coveting owned, hired and non- owned vehicles; with a combined bodily injury and property damage minimum limit of $600,000 per ocem'rence; or separate limits of $250,000 for bodily injury (per person), $500,000 bodily injury (per accident) and $100,000 for property damage. Such insurance shall include coverage for loading and unloading hazards. 1.26.2. OWNER'S PROTECTIVE LIABILITY INSURANCE: CONTP,~CTOP, shall obtain, pay for and maintain at all times during the prosecution of the work under this contract, an OWNER'S protective liability insurance policy naming the OWNER and the Engineer as instireds for property damage and bodily injury, which may arise in the prosecution of the work or CONTRACTOR'S operations under this conixact. Coverage shall be on an "occutrance" basis, and the policy shall be issued by the same insurance company that carries the CONTRACTOR'S liability insurance with a combined bodily injury and property damage.minimum limit of $600,000 per occurrence and $1,000,000 aggregate. 1.26.3. "UMBRELLA" LIABILITY INSURANCE: If required by OWNER, CONTRACTOR shall obtain, pay for and maintain umbrella liability insurance during the contract term, insuring CONTRACTOR for an amount of not less than $1,000,000 per occurrence combined limit for bodily injury and property damage that follows form and applies in excess of the primary liability coverage's required hereinabove. The policy shall provide "drop down" coverage where underlying primary insurance coverage limits are insufficient or exhausted. OWNER and Engineer shall be named as additional insureds. 1.26.4. 1.26.5. RAILROAD PROTECTIVE INSURANCE:' When required in the Special Provisions, CONTRACTOR shall obtain, maintain and present evidence of railroad protectiye insurance (RP[). The policy shall be.in.the name of the Railroad Company having jurisdiction over the right-ot'-',vay involved'. The minimum limit of coverage shall meet the specifications provided by the Railroad Company. The OWNER shall specify the amount of RPI necessary. pOLICY ENDORSEMENTS AND SPECIAL CONDITIONS': (a) Each insurance policy to be ~mished by CONTRACTOR shall include the following conditions by endorsement to the policy: (1) name the OWNER as an additional insured as to all applicable coverage; (2) ' each policy shall require that 30 days prior to the cancellation, 'nonrenewal or any material change in coverage, a notice thereof shall be given to. OWNER by certified mail. If the policy is cancelled for nonpayment of premium, 0nly 10 days written notice to OWNER is req!iired; (3) the term "Owner" shall include all authorities, boards, bureaus, commissions, divisions, departments and Offices of the OWNER and individual members, employees and agents thereof ih their official capacities, and/or while acting on behalf of the OWNER; (4) the policy phrase "other insurance" shall not apply to the OWNER where the OWNER is an additional insured on the policy; and (5) all provisions of the contract concerning liability, duty and standard of care together with the indemnificatio~ provision shall be underwritten by contractual liability coverage sufficient to include such obligations within applicable policies. (b) Insurance furnished by the CONTRACTOR shall be in accordance with the following requirements: (I) any policy submitted shall not be subject to limitations, conditions or restrictions deemed inconsistent with .the intent of the insurance .requirements to be fulfilled by CONTRACTOR. The OWNER'S decision thereon shill be final; (2) all policies are to be written through companies duly licensed to transact that class of insurance in the STATE OF TEXAS; and (3) ail liability policies required herein shall be written with an "occurrence" basis coverage trigger. (c) CONTRACTOR agrees to the following: (1) CONTRACTOR hereby Waives snbrogation rights £or loss or damage to the extent same are covered by insurance. Insurers shall have no right of recovery or subrogation against the OWNER, it being the intention that the insurance policies shall protect all parties to the contract and be primary coverage for all losses covered by the policies; (2) Companies issuing the insurance policies and CONTRACTOR shall have no recourse against the OWNER for payment of any premiums or assessments for any deductibles, as all such premiums and deductibles are the sole responsibility and risk of the cONTRACTOR; (3) approval, disapproval or failure to act by the OWNER regarding any insurance supplied by the CONTRACTOR (or any subcontractors) shall not relieve the CONTRACTOR of full responsibility or liability for damages and accidents as set 'forth in the contract documents. Neither shall the bankruptcy, insolvency or denial of liability by the insurance company exonerate the CONTRACTOR from liability; and. (4) no special payments shall be made for any insurance that the CONTKA. CTOR and subcontractors are required to carry; all are included in the contract price and the contract unit prices. Any of such insurance policies required under this section may be written in combination with any of the others, where legally permitted, but none of the specified limits may be lowered thereby. C RA~~~o Casey Realty Advisors, Inc. Apri130, 2008 George C. Campbell, City Manager Edwin Snyder, City Manager Pamela England City of Denton, Texas 601 East Hickory Street, Suite B Denton, Texas 76201 RE: $150,000.00 Deposit into Escrow Account No. 113003362, State Bank and Trust, Dallas, TX (the Escrow Account) Dear Ms. England and Gentlemen: Pursuant to our meeting in early April, an agreement was reached to deposit an additional $150,000.00 into the Escrow Account for the completion of the Construction Project as set forth in the Escrow Agreement by and between Denton CJW Partners, Ltd., ("Seller"), the City of Denton, Texas, a home rule municipality ("Purchaser"), and Alamo Title Insurance Company, ("Escrow Agent"), dated May 9, 2005, hereinafter referred to as "the Escrow Agreement." We hereby confirm that the $150,000.00 was deposited on April 16, 2008 into the Escrow Account as shown on the attached deposit ticket. This letter shall serve as the agreement between the parties to the Escrow Agreement that the additional $150,000.00 deposited into the Escrow Account shall be maintained in the Escrow Account and shall not be disbursed without written approval from the City of Denton, Texas. Vp~~s~ ichael A. Casey, Preside Casey Realty Advisors, Inc. General Partner, Denton-CJW Partners, Ltd. 1170 Corporate Drive West, Suite 101 ~ Arlington, Texas 76006-6813 • (817)649-8611 • Fax (817) 649-1636 (Acknowledgment) STATE OF TEXAS COUNTY OF TARRANT Subscribed and sworn to before me on this 3~ day of April, 2008, by Michael A. Casey, President of Casey Realty Advisors, Inc., General Partner, Denton-CJW Partners, Ltd., a Texas limited partnership, on behalf of said limited partnership. ~°'""~ TERRY REYNOLDS s~®e Notary PubUc State of Texas « Comm. Expires 10.2.6-2Qpg --~-,~-...Y.~_,_,~. Notary u ic, Sta of Texas CITY OF DENTON, TEXAS By: G George C. Campbell, City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN SNYDER, CITY~T'ORNE By: r~.~~V~U~l3 ~' ~3 ~"~ "~rxq~~ ~'i ] s. `. ,tom ~ ~ _s-~ .~`--~ ~~ .- ~ .! ~_ z-~. x * - .$ ~ ~~ v } ~r MEMBER FDIC F---~ a.AY ~raiL s r....a.~ "~ .. K _ _ ~~, ~» . ~.~--~ r ~K,r^sl , ~TiHIS~IS~YO~~R~RECEIP~T / F- -•' r _~ ~ '_ + Q` -- L ~ -; ; WHEN MAIM7G A DEPOSR AT A;TELLERS,WWODW ALWAYS OBTAW AN OFFI(' L RECEIPT - .' ~- .. ~ :-` _- ~ ~ - ~~- . Chads-end ahaz darie an re[dredtor.dea~l ?mumP~?a :the UnEorm CoeimeKdal coca or erry appdrade aohectlm epreemenl ~` ~RECEIQT •1lraaer '302 4/16/08 Duplica#e TransN:~ ' 3 12:19:42 • 113003362 0 ' Deposit- ~ - #150000.00 a W 0 0 DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL BANK SYMBOL, TRANSACTION NUMBER AND AMOUNT OF DEPOSIT ARE SHOWN ABOVE. Name Michael A. Casey, Escrow Acct. 1170 Corporate Dr.W., ~~101 Arlington, TX 76006 O STATE BAND &TRI.lST DALLAS (2Ta)987-7400 CURRENCY - COIN - LIST CHECKS SINGLY OR ATTACH LIST DEPOSIT TICKET USE OTHER SIDE FOR jrS~o ODO ~7 ADDITIONAL LISTING. CHECKS - BE SURE EACH ITEM IS 4 / 16 / 2008 PROPERLY ENDORSED. DATE TOTAL ITEMS CHECKS AND OTHER fTEAtS ARE RECENED FOR DEPOSIT SUBJECT TO THE PROVISIONS 1 OF THE UNIFORM COMMERCIAL CODE OR ANY APPLICABLE COLLECTK7N AGREEA/EM. DEPOSTfS MAY NOT BE AVAAABLE FOR IMMEDIATE WITHDRAWAL TOTAL FROM - OTHER SIDE -~ ~:ia,ioa,s~~,a~: II'LL300 3 3 6 211' 4l ~~d v dd,d~d 1446 DENTON-CJW PARTNERS, LTD. 722 NORTH FIELDER ROAD ARLINGTON, TEXAS 76012-4635 (817) 548-8727 88-9314-3119 . .'.'. DATE April 16, 2008 PAY _' ORDER OF Michael~A. Casey, Escrow Account ~ $ 150,000.00 ~'1~~~,~~t:,i %:`'~ 1•:, r~lti €~'-i 5~~' •~S'e`s~~~~ DOLLARS f~~ w _ ~. FIRST SAVINGS BANK FSB ARLINGTON, TX 76004-1959 FOR Transfer -Denton-CJW/City•of Denton _ I~ 11'00.144611' -~:3 L L9-93 ~49~: 0 L L i84