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HomeMy WebLinkAboutContract 36201 �' d�=^9ETAF;If RAFT :C11'I RACT NO.I-,- STRATEGIC PARTNERSHIP AGREEMENT BETWEEN THE CITY OF FORT WORTH, TEXAS AND MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 2 OF PARKER COUNTY STATE OF TEXAS § COUNTY OF PARKER § This Strategic Partnership Agreement (this "Agreement") is entered into by the City of Fort Worth, a home-rule municipal corporation situated in Tarrant, Denton and Wise Counties, Texas (the "City"), acting by and through its duly authorized Assistant City Manager, and MorningStar Ranch Municipal Utility District No. 2 of Parker County (the "District"), acting by and through its duly authorized Board of Directors, under the authority of Section 43.0751 of the Texas Local Government Code ("Local Government Code"). RECITALS A. Local Government Code, Section 43.0751 (the "Act"), authorizes the City and a municipal utility district to negotiate and enter into a strategic partnership agreement by mutual consent. B. This Agreement authorizes the City to annex certain tracts of land within the District that have been or may in the future be designated for commercial use for limited purposes for the purpose of collecting Sales and Use Tax Revenues within such commercial tracts and to annex all land within the District for full purposes on terms acceptable to the City and the District. C. Pursuant to this Agreement the City will pay to the District an amount equal to a portion of such Sales and Use Tax Revenues, which may be used to fund the installation and construction of Infrastructure and for other purposes in accordance with this Agreement. D. The District and the City acknowledge that this Agreement provides benefits to each party, including revenue, services and regulatory benefits. E. The District and the City acknowledge that this Agreement does not require the District to provide revenue to the City solely for the purpose of obtaining an agreement with the City to forgo annexation of the District. NOW THEREFORE, for and in consideration of the mutual agreements, covenants, and conditions contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are acknowledged, the District and the City agree as follows: MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 1 016391.00010:1051153.03 ARTICLE I FINDINGS A. The District is a conservation and reclamation district created by the Texas Commission on Environmental Quality ("TCEO"), pursuant to Article XVI, Section 59, of the Texas Constitution, and Chapters 49 and 54 of the Texas Water Code. B. On , 2007, the City Council adopted Resolution No. consenting to the creation of the District (the "Consent Resolution") and approved that certain Agreement Concerning Creation and Operation of MomingStar Ranch Municipal Utility District No. 2 of Parker County (City Secretary Contract No. , M& C ) (the "Consent Agreement"). C. The District encompasses approximately 356.829 acres, more or less, all of which are located within Parker County, Texas, and within the extraterritorial jurisdiction of the City, consisting of a 176.610-acre tract and a 180.219-acre tract. as shown on Exhibit A and described in Exhibit B attached to this Agreement (the "Pro pert "). D. WYA The Ranch at Mary's Creek, Ltd., a Texas limited partnership ("Owner"), has represented to the City and the District that it owns the Property. E. Owner and the City have entered into the Development Agreement for MomingStar Ranch (City Secretary Contract No. , M & C ) governing the Property and the 380.316 acres encompassed by MomingStar Ranch Municipal Utility District No. 1 of Parker County ("District One"), which includes land use and development standards that are designed to produce a quality mixed-use development and which provides, among other things, that commercial development may occur on Tract 1, consisting of approximately 5.352 acres, and Tract 2, consisting of approximately 10.636 acres, as shown on Exhibit C and described on Exhibit D attached to this Agreement. F. The City Council and Owner have entered into the Utility Agreement for MomingStar Ranch (City Secretary Contract No. , M & C ) relating to the provision of water and wastewater service and the construction, ownership, operation and maintenance of water and wastewater infrastructure to serve the Property and the land included in District One (the "Utility Agreement"). G. The City and the District desire to enter into this Agreement providing for limited purpose annexation of the portions of the Property within which commercial uses may occur for the purpose of collecting Sales and Use Tax Revenues within the annexed areas in accordance with Subsection (k) of the Act, and for the sharing of Sales and Use Tax Revenues between the City and the District. H. The District provided notice of two public hearings concerning the adoption of this Agreement and the proposed limited purpose annexation of the Original Commercial Property, as defined below, in accordance with the procedural requirements of the Act. MomingStar Ranch MUD No. 2 Strategic Partnership Agreement Page 2 016391.00010:1051153.03 1. The Board of Directors of the District conducted two public hearings regarding this Agreement and the proposed limited purpose annexation of the Original Commercial Property, at which members of the public who wished to present testimony or evidence regarding this Agreement and the proposed limited purpose annexation were given the opportunity to do so, in accordance with the procedural requirements of the Act on , 200_, at .in. at and on , 200_, at .in. at J. The Board of Directors of the District approved this Agreement on 200_, in open session at a meeting held in accordance with Chapter 551 of the Government Code. K. The City provided notice of two public hearings concerning the adoption of this Agreement and the proposed limited purpose annexation of the Original Commercial Property, in accordance with the procedural requirements of the Act. L. The City Council conducted two public hearings regarding this Agreement and the proposed limited purpose annexation of the Original Commercial Property, at which members of the public who wished to present testimony or evidence regarding this Agreement and the proposed limited purpose annexation were given the opportunity to do so, in accordance with the procedural requirements of the Act on , 200_, at .in., at the City Council Chambers and on , 200_, at .in., at the City Council Chambers. M. The City Council approved this Agreement on , 200_, in open session at a meeting held in accordance with Chapter 551 of the Government Code (M& C ), which approval occurred after the Board of Directors of the District approved this Agreement. N. All procedural requirements imposed by law for the adoption of this Agreement have been met. O. Pursuant to the Consent Agreement and the Utility Agreement, the District will construct or cause to be constructed, certain water and wastewater facilities within the boundaries of the Property and outside the boundaries of the Property as required to connect such facilities to the City's water and wastewater systems, all in accordance with City standards. The District shall dedicate such facilities to the City, which shall operate and maintain such facilities as part of the City's water and wastewater systems in accordance with the terms of the Utility Agreement. P. Pursuant to the Consent Agreement, the District will construct, operate, and maintain or cause to be maintained drainage and road systems within the District in accordance with City standards. Q. In accordance with the requirements of Subsection (p)(2) of the Act, this Agreement provides benefits to the City and the District, including revenue, services, and MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 3 016391.00010:I O5l 153.03 regulatory benefits which are reasonable and equitable with regard to the benefits provided to the other. ARTICLE II DEFINITIONS Terms used in this Agreement shall have the following meanings: "Act"means the Texas Local Government Code, Section 43.0751, and any amendments thereto. "Additional Commercial Property" means any property within the District Boundaries designated for commercial use, other than the Original Commercial Property. "Agreement" means this Strategic Partnership Agreement between the City and the District. "Board" means the Board of Directors of the District. "Bond" means (a) any instrument, including a bond, note, certificate of participation, or other instrument evidencing a proportionate interest in payments, due to be paid by the District, or (b) any other type of obligation that (1) is issued or incurred by the District under the District's borrowing power, without regard to whether it is subject to annual appropriation, and (2) is represented by an instrument issued in bearer or registered form or is not represented by an instrument but the transfer of which is registered on books maintained for that purpose by or on behalf of the District. The term shall include obligations issued to refund outstanding bonds but shall not include reimbursement agreements entered into between the District and a developer of the Property or bond anticipation notes. "City" means the City of Fort Worth, Texas, a home rule municipality located in Tarrant, Wise, and Denton Counties. "City Council" means the City Council of the City. "City Secretary" means the City Secretary of the City. "City Manager" means the City Manager of the City. "City Share" means the City's share of Sales and Use Tax Revenues as defined by Section 4.02 of this Agreement. "Comptroller"means the Comptroller of Public Accounts of the State of Texas. "Consent Agreement" means the Agreement Concerning Creation and Operation of MornngStar Ranch Municipal Utility District No. 2 of Parker County, by and among the City, the District, and Owner, which was approved by the City Council on , 2007 (City Secretary Contract No. , M & C MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 4 016391.00010:1051153.03 "Development Agreement" means the Development Agreement for MorningStar Ranch, between the City and Owner, which was approved by the City Council on , 2007 (City Secretary Contract No. , M & C "District" means the MorningStar Ranch Municipal Utility District No. 2 of Parker County. "District Boundaries" means boundaries of the District, consisting of the boundaries of the 176.610-acre tract and the 180.219-acre tract as shown on Exhibit A and described on Exhibit B. "District Confirmation Date" means the date on which the Board of Directors of the District canvasses the results of the election held within the District confirming the creation of the District. "District Share" means the District's share of Sales and Use Tax Revenues as defined by Section 4.02 of this Agreement. "ETJ" means the extraterritorial jurisdiction of a city as defined by the Local Government Code, as amended, with the City's ETJ being an unincorporated area presently extending five miles from the City's corporate limits, excluding other incorporated municipalities and their respective ETJs. "Finance Director" means the Director of the City's Finance Department. "Government Code" means the Texas Government Code, as amended. "Infrastructure" means all water, wastewater, drainage, roadway and other infrastructure improvements installed or constructed to serve the Property, whether located within or outside the Property. "Limited Purpose Annexation Period" means the period commencing on the effective date of the limited purpose annexation of any Limited Purpose Property and ending upon the full purpose annexation or disannexation of such property. "Limited Purpose Property" means the property in the District that is annexed for limited purposes pursuant to this Agreement, including the Original Commercial Property and any Additional Commercial Property. "Local Government Code" means the Texas Local Government Code, as amended. "Notice" means notice as defined in Section 8.01 of this Agreement. "Original Commercial Property" means that certain 5.352-acre tract (Tract 1) and that certain - 10.636-acre tract (Tract 2) designated for commercial use in the Development Agreement, as shown on Exhibit C and described on Exhibit D. "Owner" means WYA The Ranch at Mary's Creek, Ltd., a Texas limited partnership, its successors and assigns as permitted by Section 8.10 of this Agreement. MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 5 016391.00010:1051153.03 "Party" means, individually, the City or the District, their successors and assigns as permitted by Section 8.10 of this Agreement. "Property" means approximately 356.829 acres of land located in Parker County, Texas, consisting of a 176.610-acre tract and a 180.219-acre tract, as shown on Exhibit A and described on Exhibit B. "Sales and Use Tax Revenues" means those revenues received by the City from the sales and use tax authorized to be imposed by the City on sales consummated at locations within the Limited Purpose Property pursuant to the Act and Chapter 321 of the Tax Code and whose use is not otherwise controlled or regulated, in whole or in part, by another governmental entity, authority, or applicable law, ordinance, rule, or regulation. Sales and Use Tax Revenues specifically exclude those revenues received by the City from the Crime Control District Sales Tax imposed by the City pursuant to Tax Code Section 323.105 and Local Government Code Section 363.055. "Sales and Use Tax Account" means the account established pursuant to Section 4.03 in which the District deposits the District Share. "Tax Code" means the Texas Tax Code, as amended. "Utility Agreement" means the Utility Agreement for MorningStar Ranch executed by Owner and the City, and to be executed by the District and District One after the District Confirmation Date (City Secretary Contract No. , M & C ) relating to the provision of water and wastewater service and the construction, ownership, operation and maintenance of water and wastewater infrastructure for the Property and the land included in District One. ARTICLE III ADOPTION OF AGREEMENT AND LIMITED-PURPOSE ANNEXATION OF ORIGINAL COMMERCIAL PROPERTY AND ADDITIONAL COMMERCIAL PROPERTY 3.01 Public Hearings. The District and the City acknowledge and agree that prior to the execution of this Agreement, the governing bodies of the District and the City have conducted public hearings for the purpose of considering the adoption of this Agreement and that such hearings were noticed and conducted in accordance with the terms of the Act, this Agreement, Chapter 551 of the Government Code, and the City's charter. 3.02 Effective Date. Pursuant to Subsection (c) of the Act, this Agreement is effective , the date of adoption of this Agreement by the City. 3.03 Filing in Property Records. The City shall file this Agreement in the Real Property Records of Parker County, Texas. 3.04 Limited Purpose Annexation of Original Commercial Property. The District and the City agree that the City may annex all or any portion of the Original Commercial Property for the limited purpose of collecting Sales and Use Tax Revenues within the Original Commercial Property pursuant to Subsection (k) of the Act. The District acknowledges that the MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 6 016391.00010:1051153.03 City Council may adopt a limited purpose annexation ordinance at a meeting conducted in accordance with Chapter 551 of the Government Code and further acknowledges that no additional notices, hearings, or other procedures are required by law in order to approve such limited purpose annexation. 3.05 Limited Purpose Annexation of Additional Commercial Property. In the event the location of proposed commercial development within the District is changed or additional property designated for commercial development is added, the City Council may annex the Additional Commercial Property for the limited purpose of collecting Sales and Use Tax Revenues within the Additional Commercial Property pursuant to Subsection (k) of the Act. The District acknowledges that the City Council may adopt a limited purpose annexation ordinance at a meeting conducted in accordance with Chapter 551 of the Government Code and further acknowledges that no additional notices, hearings, or other procedures are required by law to approve such limited purpose annexation. 3.06 Connections to the CityLimits. The District consents to the annexation of land connecting the Original Commercial Property or the Additional Commercial Property to the City limits. The City may annex property pursuant to this section for limited purposes as permitted by the Act. 3.07 Consent to Limited Purpose Annexation. THE DISTRICT ON BEHALF OF ITSELF AND ALL PRESENT AND FUTURE OWNERS OF LAND WITHIN THE DISTRICT BOUNDARIES HEREBY REQUESTS THAT THE CITY ANNEX THE ORIGINAL COMMERCIAL PROPERTY AND THE ADDITIONAL COMMERCIAL PROPERTY FOR LIMITED PURPOSES AS PROVIDED IN THIS AGREEMENT. THE DISTRICT CONSENTS TO SUCH ANNEXATION AND TO THE COLLECTION OF SALES AND USE TAX REVENUES BY THE CITY WITHIN SUCH LIMITED PURPOSE PROPERTY. SUCH CONSENT SHALL BIND THE DISTRICT AND EACH OWNER AND FUTURE OWNER OF LAND WITHIN THE DISTRICT BOUNDARIES. ARTICLE IV TAXATION AND PROVISION OF SERVICES 4.01 Collection of Sales and Use Tax Revenues. The City may impose a sales and use tax within the Limited Purpose Property pursuant to Subsection (k) of the Act. The sales and use tax shall be imposed on all eligible commercial activities at the rate of one percent or other rate allowed under future amendments to Chapter 321 of the Tax Code and imposed by the City. Collection of the Sales and Use Tax Revenues shall take effect on the date described in Section 321.102 of the Tax Code. 4.02 Payment of Sales and Use Tax. In return for the benefits received by the City pursuant to this Agreement, the City shall pay to the District an amount equal to 50% of the Sales and Use Tax Revenues collected during the first nineteen (19) years of the Limited Purpose Annexation Period, and paid to the City as reflected in sales tax reports provided by the Comptroller to the City. Thereafter, the City shall pay to the District an amount equal to 25% of the Sales and Use Tax Revenues collected commencing on the first day of the twentieth (20th) year of the Limited Purpose Annexation Period, and paid to the City as reflected in the sales tax reports paid by the Comptroller to the City. All amounts payable to the District pursuant to this MomingStar Ranch MUD No.2 Strategic Partnership Agreement Page 7 016391.00010:1051153.03 Section 4.02 are hereafter referred to as the "District Share" The City shall pay the District Share within thirty (30) days after the City receives the sales tax report reflecting such revenues from the Comptroller. Any payment of the District Share not made within such 30-day period shall bear interest calculated in accordance with Section 2251.025 of the Government Code. The City shall retain all Sales and Use Tax Revenues that do not constitute the District Share (the "City Share"). 4.03 District Use of Sales and Use Tax Revenues. The District shall deposit the District Share in a segregated interest-bearing account (the "Sales and Use Tax Account"). The District shall use funds in the Sales and Use Tax Account in the following order of priority: (a) Reimbursement for the construction or installation of Infrastructure; (b) Funding the construction or installation of Infrastructure; (c) Funding for any purpose for which the District may legally expend funds (including such items as District bond debt service, operational costs, and any contract tax obligations); provided, however, the District shall not fund any such. items if the District's ad valorem tax rate is, or with such funding of any such items would be, less than 90% of the City's ad valorem tax rate for the previous year; and (d) Purchasing and retiring any Bond after the tenth anniversary of its issuance. 4.04 City Use of Sales and Use Tax Revenues. The City may use the City Share for any lawful purpose; provided, however, it is the City's intent to use the additional 25% share of the Sales and Use Tax Revenues beginning on the first day of the twentieth (20th) year of the Limited Purpose Annexation Period to defray the costs of providing municipal services to the residents of the Property upon full purpose annexation. 4.05 Delivery of Sales Tax Reports to District. The City shall include with each payment of the District Share a condensed version of each sales tax report provided by the Comptroller relating to Sales and Use Tax Revenues. 4.06 Notification of Comptroller. The City shall send notice of this Agreement, together with other required documentation, to the Comptroller in the manner provided by Tax Code, Section 321.102, after the City Council annexes any portion of the Limited Purpose Property for limited purposes. 4.07 Termination of Sales and Use Tax Sharing. Upon termination of this Agreement, the City shall have no further financial obligation to the District pursuant to this Agreement, and all Sales and Use Tax Revenues collected by the City from the Limited Purpose Property after the termination date shall be retained by the City and may be used for any lawful purpose. 4.08 City's Maintenance of Records and District's Audit Rights. The District may audit the Sales and Use Tax Revenues collected by the City to determine whether the District Share has been paid to the District in accordance with this Agreement. The City shall provide MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 8 016391.00010 1051153.03 reasonable accommodations for the District to perform the audit. Any audit shall be made at the District's sole expense and may be performed at any time during the City's regular business hours on thirty (30) days Notice to the City. For purposes of any such audits, the City shall maintain and make available to the District's representatives all books, records, documents and other evidence of accounting procedures or practices in form sufficiently maintained to reflect the amount of Sales and Use Tax Revenues received by the City from the Limited Purpose Property. Notwithstanding the foregoing, however, if any audit conducted by the District reveals that the District Share has been underpaid by more than two percent (2%), the City shall reimburse the District for the reasonable cost of the audit. 4.09 District's Maintenance of Records and City's Audit Rights. The City may audit the Sales and Use Tax Account and the District's expenditures of the District Share to determine whether the expenditures have been made by the District in accordance with Section 4.03 of this Agreement. The District shall provide reasonable accommodations for the City to perform the audit. Any audit shall be made at the City's sole expense and may be performed at any time during the District's regular business hours on thirty (30) days Notice to the District. For purposes of any such audits, the District shall maintain and make available to the City's representatives all books, records, documents and other evidence of accounting procedures or practices in form sufficiently maintained to reflect deposits to the Sales and Use Tax Account and expenditures of the District Share. Notwithstanding the foregoing, however, if any audit conducted by the City reveals that the District has not used the District Share in accordance with Section 4.03, the District shall reimburse the City for the reasonable cost of the audit. Furthermore, if such breach is not cured as provided by Article VII, the City may withhold payments of future Sales and Use Tax Revenues in the amount of the improper expenditures. ARTICLE V FULL PURPOSE ANNEXATION 5.01 Full Purpose Annexation. In accordance with the terms of this Agreement and the Development Agreement, the City shall have the right, but not the obligation, to annex the Property (or a portion of the Property, to the extent permitted by law) for full purposes on or after the earlier to occur of: (a) dissolution of the District (other than as a result of annexation by the City); or (b) , which is fifteen (15) years after the Effective Date of the Development Agreement. Such authority is in addition to the authority to annex portions of the Property pursuant to Section 5.04. 5.02 Procedure for Full Purpose Annexation. The City and the District acknowledge that the Property is exempt from inclusion in the City's municipal annexation plan pursuant to Section 43.052(h)(3)(B) of the Local Government Code. The District hereby consents, on its behalf and on behalf of all current and future owners of land included within the District Boundaries, to full purpose annexation of the Property in accordance with the procedure for annexation of areas exempted from the municipal annexation plan contained in Chapter 43 of the Local Government Code, Subchapter C-1, or, if Subchapter C-1 is amended or repealed, in accordance with the most comparable annexation procedure. In the alternative, at City's election, the Property shall be deemed to be within the full-purpose boundary limits of the City on the full purpose annexation conversion date in accordance with Section 43.0751 of the Local MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 9 016391.00010:1051153.03 Government Code. The full purpose annexation conversion date shall be established by a resolution adopted by the City Council and shall be no earlier than the first to occur of the events described in Section 5.01. 5.03 Consent to Annexation. OWNER AND ALL FUTURE OWNERS OF ALL OR ANY PORTION OF THE PROPERTY IRREVOCABLY AND UNCONDITIONALLY CONSENT TO THE FULL PURPOSE ANNEXATION OF THE PROPERTY INTO THE CORPORATE LIMITS OF THE CITY IN ACCORDANCE WITH THIS AGREEMENT AND WAIVE ALL OBJECTIONS AND PROTESTS TO SUCH ANNEXATION. THIS AGREEMENT SHALL SERVE AS THE PETITION OF OWNER AND ALL FUTURE OWNERS TO FULL PURPOSE ANNEXATION OF THE PROPERTY IN ACCORDANCE WITH THIS AGREEMENT. 5.04 Annexation of Portions of Property. The District agrees to cooperate with and assist the City in annexing one or more areas in the manner prescribed by law which does not result in the dissolution of the District, none of which may exceed 525 feet in width at its widest point or such other width limitation subsequently imposed by law, as reasonably necessary for the City to connect areas to the City that are outside the District and that the City intends to annex. The City consents and agrees that such areas shall be located within right-of-way areas or along lot lines whenever possible. Notwithstanding the zoning designation approved for the annexed area, such area may be developed and used in accordance with the Development Agreement. ARTICLE VI TERM This Agreement commences on the Effective Date and continues until the City annexes the Property for full purposes (subject to the provisions of the Development Agreement). The provisions of this Agreement relating to the collection of sales and use tax will automatically terminate with regard to any portion of the Limited Purpose Property upon disannexation or full purpose annexation of such property. ARTICLE VII BREACH, NOTICE AND REMEDIES 7.01 Notification of Breach. If either Party commits a breach of this Agreement, the non-breaching Party shall give Notice to the breaching Party that describes the breach in reasonable detail. 7.02 Cure of Breach. The breaching Party shall commence curing such breach within fourteen (14) calendar days after receipt of Notice of the breach and shall complete the cure within fourteen (14) calendar days from the date of commencement of the cure; however, if the breach is not reasonably susceptible to cure by the breaching Party within such fourteen (14) day period, the non-breaching Party shall not bring any action so long as the breaching Party has commenced to cure the default within such fourteen (14) day period and diligently completes the work within a reasonable time without unreasonable cessation of the work. MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 10 016391.00010:1051153.03 7.03 Remedies for Breach. If the breaching Party does not substantially cure such breach within the stated period of time, the non-breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, law, or equity, seek any relief available at law or in equity, including, but not limited to, an action under the Uniform Declaratory Judgment Act, specific performance, mandamus and injunctive relief, provided, however, the non-breaching Party shall not be entitled to terminate this Agreement. The Parties specifically waive any right that they have or in the future may have to terminate this Agreement. Damages, if any, to which any non-breaching Party may be entitled shall be limited to actual damages and shall not include special or consequential damages. In addition, the prevailing party in any such action shall be entitled to reasonable attorney's fees and costs of litigation as determined in a final, non-appealable order in a court of competent jurisdiction. ARTICLE VIII ADDITIONAL PROVISIONS 8.01 Notice. Any notices, certifications, approvals, or other communications (a "Notice") required to be given by one Party to another under this Agreement shall be given in writing addressed to the Party to be notified at the address set forth below and shall be deemed given: (a) when the Notice is delivered in person to the person to whose attention the Notice is addressed; (b) when received if the Notice is deposited in the United States Mail, certified or registered mail, return receipt requested, postage prepaid; (c) when the Notice is delivered by Federal Express, UPS, or another nationally recognized courier service with evidence of delivery signed by any person at the delivery address; or (d) five business days after the Notice is sent by FAX (with electronic confirmation by the sending FAX machine) with a confirming copy sent by United States mail within 48 hours after the FAX is sent. If any date or period provided in this Agreement ends on a Saturday, Sunday, or legal holiday,the applicable period for calculating the notice shall be extended to the first business day following the Saturday, Sunday, or legal holiday. For the purpose of giving any Notice, the addresses of the Parties are set forth below. The Parties may change the information set forth below by sending Notice of such changes to the other Party as provided in this section. To the City: City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: City Secretary FAX: 817-392-6196 City of Fort Worth, Texas 1000 Throckmorton Street Attn: City Manager Fort Worth, Texas 76102 Attn: City Manager FAX: 817-392-6134 MorningStar Ranch MUD No.2 Strategic Partnership Agreement Page 11 016391.00010:1051153.03 City of Fort Worth, Texas 1000 Throckmorton Street Attn: Finance Director Fort Worth, Texas 76102 Attn: Finance Director FAX: 817-392-8966 To the District: Morningstar Ranch Municipal Utility District No. 2 of Parker County c/o: Coats Rose 5420 LBJ Freeway, Suite 1300 Dallas, TX 75240 Attn: Timothy G. Green FAX: 972-982-8451 8.02 Payments. The City shall forward payments of the District Share to the District at the address set out in Section 8.01 by regular U.S. Mail or other method of delivery mutually acceptable to the Parties. 8.03 No Waiver. Any failure by a Party to insist upon strict performance by the other Party of any provision of this Agreement shall not be deemed a waiver thereof, and the Party shall have the right at any time thereafter to insist upon strict performance of any and all of the provisions of this Agreement. No provision of this Agreement may be waived except by writing signed by the Party waiving such provision. Any waiver shall be limited to the specific purpose for which it is given. No waiver by any Party hereto of any term or condition of this Agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 8.04 Governing Law and Venue. THIS AGREEMENT MUST BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, AS THEY APPLY TO CONTRACTS PERFORMED WITHIN THE STATE OF TEXAS AND WITHOUT REGARD TO ANY CHOICE OF LAW RULES OR PRINCIPLES TO THE CONTRARY. THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT IS PERFORMABLE IN TARRANT COUNTY, TEXAS AND HEREBY SUBMIT TO THE JURISDICTION OF THE COURTS OF TARRANT COUNTY, TEXAS AND AGREE THAT ANY SUCH COURT SHALL BE A PROPER FORUM FOR THE DETERMINATION OF ANY DISPUTE ARISING HEREUNDER. 8.05 Authority to Execute. The City certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with the City Charter and City ordinances. The District certifies, represents and warrants that the execution of this Agreement is duly authorized and adopted by the Board. 8.06 Entire Agreement; Severability. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, whether oral or written, covering the subject matter of this Agreement. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable for any reason, then (a) such unenforceable provision MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 12 016391.00010:1051153.03 shall be deleted from this Agreement; (b) the unenforceable provision shall, to the extent possible, be rewritten to be enforceable and to give effect to the intent of the Parties; and (c) the remainder of this Agreement shall remain in full force and effect and shall be interpreted to give effect to the intent of the Parties. 8.07 Changes in State or Federal Laws. If any state or federal law changes so as to make it impossible for the City or the District to perform its obligations under this Agreement, the parties will cooperate to amend this Agreement in such a manner that is most consistent with the original intent of this Agreement as legally possible. 8.08 Additional Documents and Acts. The Parties agree that at any time after execution of this Agreement, they will, upon request of the other Party, execute and/or exchange any other documents necessary to effectuate the terms of this Agreement and perform any further acts as the other Party may reasonably request to effectuate the terms of this Agreement. 8.09 Captions. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 8.10 Assi ng ability, Successors, and Assigns. This Agreement shall not be assignable without the other Party's written consent. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective representatives, successors, and assigns. 8.11 Amendment. This Agreement may be amended only by written agreement with approval of the governing bodies of the City and the District. 8.12 Interpretation. The Parties acknowledge that each party and, if it so chooses, its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. As used in this Agreement, the term "including" means "including without limitation" and the term "days" means calendar days, not business days. Wherever required by the context, the singular shall include the plural, and the plural shall include the singular. Each defined term herein may be used in its singular or plural form whether or not so defined. 8.13 No Third Party Beneficiaries. This Agreement is solely for the benefit of the City and the District, and neither the City nor the District intends by any provision of this Agreement to create any rights in any third-party beneficiaries or to confer any benefit or enforceable rights under this Agreement or otherwise upon anyone other than the City and the District. 8.14 Governmental Powers. By execution of this Agreement, neither the City nor the District waives or surrenders any of its respective governmental powers, immunities or rights, except as specifically waived pursuant to this section. The City and the District mutually waive their governmental immunity from suit and liability only as to any action brought by a Party to pursue the remedies available under this Agreement and only to the extent necessary to pursue such remedies. Nothing in this section shall waive any claims, defenses or immunities that the City or the District has with respect to suits against the City or the District by persons or entities not a party to this Agreement. Nothing in this Agreement is intended to delegate or impair the MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 13 016391.00010:1051153.03 performance by the City of its governmental functions, and the City waives any claim or defense that any provision of this Agreement is unenforceable on the grounds that it constitutes an impermissible delegation or impairment of the City's performance of its governmental functions. 8.15 Incorporation of Exhibits by Reference. All exhibits attached to this Agreement are incorporated into this Agreement by reference for the purposes set forth herein, as follows: Exhibit A Map of the Property Exhibit B Legal Description of the Property Exhibit C Map of Original Commercial Property Exhibit D Legal Description of Original Commercial Property 8.16 Conspicuous Provisions. The City and the District acknowledge that the provisions of this Agreement set out in bold, CAPITALS (or any combination thereof) satisfy the requirements for the express negligence rule and/or are conspicuous. 8.17 Counterpart Originals. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original. ATTEST: CITY OF FORT WORTH By: Marty Hendrix, City Secretary Marc Ott, Assistant City Manager Date: APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me, on the day of 200_, by Marc Ott, Assistant City Manager of the City of Fort Worth, Texas on behalf of said city. Notary Public, State of Texas [SEAL] Printed Name: My Commission Expires: MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 14 016391.00010:1051153.03 MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 2 OF PARKER COUNTY By: Printed Name: President, Board of Directors Date: STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me, on the day of 200`, by , President, Board of Directors of MorningStar Ranch Municipal Utility District No. 2 of Parker County, on behalf of said district, Notary Public, State of Texas [SEAL] Printed Name: My Commission Expires: MorningStar Ranch MUD No. 2 Strategic Partnership Agreement Page 15 016391.00010:1051153.03 Exhibit A Map of the Property MUD NO.2 MUD NO.1 MUD NO.2 MUD NO.1 �i � GQ G� Zo 20 MUD 1=380.316 AC MUD 2=356.829 AC N M M Lzr MUD NO.2 MUD NO,1 OLD WEATHERFORD ROAD MAP OF THE WE PROPERTY s C=*w o wyMs EXHIBIT ..._ m JOB # 014574 DATE 8.27.07 DRAWN: JST DESIGNED: A DGN-g-\nJob\014367\civ\EXHIBITS\20070713 - H&L\CA - Exh A.sht Copyright 02007 by Car+er & Burgess,Inc. MorningStar Ranch MUD No. 2 Exhibit A to Strategic Partnership Agreement-Page 1 016391.00010:1051153.03 Exhibit B Legal Description of Property LEGAL DESCRIPTION Morningstar RANCH MUD No.2 South BEING situated in the M.Teeter Survey,Abstract Number 2070,the P.J.McClary Survey, Abstract Number 907,and the W.Cagle Survey,Abstract Number 2373,Parker County,Texas, and being a portion of that tract of land described by deed to WYA THE RANCH AT MARY'S CREEK,LTD.as recorded in Book 2463,Page 618,Deed Records,Parker County,Texas, and being more particularly described by metes and bounds as follows: COMMENCING at a Texas Department of Transportation(TXDOT)monument found at the northerly southwest comer of said WYA THE RANCH AT MARY'S CREEK,LTD.tract.; THENCE along the westerly line of said WAY THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: N 00-32'56"W,562.53 feet to the POINT OF BEGINNING; N 00*32'56"W,289.44 feet to a'i/2 inch iron rod with cap found; N 00032'34"W,292.60 feet to a TXDOT monument found; N 00°13'30"W,12.98 feet to an iron rod found; N 00°32'18"W,1787.12 feet; N 04°56'41"E,50.20 feet; N 00'30'10"W,100.04 feet to a TXDOT monument found; N 06014'31"W,50.09 feet to a TXDOT monument found; N 00°28'55'W,47.43 feet to a TXDOT monument found; N 02002'20"W,155.80 feet to a TXDOT monument found; N 06027'5T'E, 104.41 feet to a TXDOT monument found; N 06045'31"W,221.88 feet; THENCE S 89057'22"E,347.64 feet leaving said westerly line; THENCE N 87004'13"E,50.05 feet; THENCE N 71034'26"E,96.53 feet; C&.B Job No.014574.010.1.0601 S#Parker September 04,2007 J:\JOB\01457401\SUR\WP\LEG\4754_exmud2_s.doc Pagel of3 MomingStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 1 016391.00010:1051153.03 THENCE N 70049'02"E,45.68 feet; THENCE N 57044'58"E,461.86 feet; THENCE N 69039'33"E, 180.01 feet; THENCE S 23002'17"E,84.57 feet; THENCE N 86017'21"E,96.81 feet; THENCE S 07053'29"E,230.10 feet; THENCE S 16010'32"E,171.96 feet; THENCE S 24°50'19"E,405.32 feet; THENCE N 65009'41"E,310.00 feet; THENCE S 24050'19"E,1167.78 feet; THENCE N 69016'09"E,168.18 feet; THENCE N 65000'30"E,131.35 feet; THENCE S 65008'l WT,271.21 feet; THENCE S050.40'55"E,127.64 feet; THENCE N83024'51"E,55.99 feet; THENCE S06035'44"E,1400.02 feet; THENCE S83024'16"W,15.00 feet; THENCE S06035'44"E,110.00 feet; THENCE S83024'16"W,350.00 feet; THENCE S75023'58"W,157.00 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left,an arc distance of 14.10 feet,through a central angle of 16109'31",having a radius of 50.00 feet,the long chord of which bears S56°16'54"E, 14.05 feet to the beginning of a reverse curve to the right; C&B Job No.014574.010.1.0601 S#Parker September 04,2007 J:\JOB\01457401\SUR\WPTEG\4754—exmud2—s.doc Page 2 of 3 MorningStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 2 016391.00010:1051153.03 THENCE with said reverse curve to the right,an arc distance of 113.11 feet,through a central angle of 129°36'58",having a radius of 50.00 feet,the long chord of which bears S00°26'49"W, 90.49 feet; THENCE S05039'40"W,22.14 feet; THENCE S30°03'08"W,137.47 feet; THENCE S47038'34"W,190.28 feet; THENCE N81059'04"W,494.11 feet; THENCE N08042'25"E, 137.06 feet to the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 104.46 feet,through a central angle of 11017'33",having a radius of 530.00 feet,the long chord of which bears N14°21'11"E,104.29 feet; THENCE N19059'58'T,119.12 feet; THENCE N70049'05"W,106.81 feet; THENCE N78005'25"W,94.26 feet; THENCE N86027'16"W,95.53 feet; THENCE S87009'53"W,46.34 feet; THENCE S85048'15"W,1514.69 feet to the POINT OF BEGINNING and containing 176.610 acres of land more or less. NOTE This document was prepared under 22TAC§663.21,does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property,except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. C&B Job No.014574.010.1.0601 S#Parker September 04,2007 J:VOB101457401\.SURIWP\LEG14754_exmud2_s.doc Page 3 of 3 MorningStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 3 016391.00010:1051153.03 LEGAL DESCRIPTION MorningStar RANCH MUD No.2 North BEING a tract of land situated in the J.D.Morris Survey,Abstract Number 927,and the M.S. Teeter Survey,Abstract Number 2070,both of Parker County,Texas,and being a portion of that tract of land conveyed to WYA THE RANCH AT MARY'S CREEK,LTD.by deed recorded in Book 2463,Page 618 of County Records,Parker County,Texas and being more particularly described by metes and bounds as follows; BEGINNING at a fence post found at the northeast comer of said WYA THE RANCH AT MARY'S CREEK,LTD. tract; THENCE S 00022'37"W,354.77 feet along the east line of said WAY THE RANCH AT MARY'S CREEK,LTD.tract; THENCE N 90000'00"W,121.22 feet; THENCE S 38052'39"W,65.14 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left,an arc distance of 43.25 feet,through a central angle of 49033'56",having a radius of 50.00 feet,the long chord of which bears S 810 10'36"W, 41.92 feet; THENCE S 89036'00"W,73.55 feet; THENCE S 00000'00"W,750.02 feet; THENCE S 89036'00"W,541.14 feet; THENCE N 00000'00"E,19.64 feet; THENCE N 90000'00"W,170.00 feet; THENCE S 00000'00"W,340.00 feet; THENCE N 90000'00"W,120.00 feet; THENCE N 81003'37"W,51.32 feet; THENCE S 89036'00"W,119.30 feet; THENCE N 00000'00"E,264.84 feet; THENCE N 63005'05"W,143.02 feet; C&B Job No.014574.010.1.0601 S#Parker September 04,2007 J:1TOB\01457401\SUR\WP\LEG\4754_EXmud2_n.doc Page 1 of MorningStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 4 016391.00010:1051153.03 THENCE N 71015'54"W, 117.86 feet; THENCE S 48030'03"W,90.00 feet; THENCE S 40014'35"W,80.41 feet; THENCE N 68011'35"W, 123.38 feet; THENCE N 50027'56"W,51.97 feet; THENCE N 64033'52"W, 139.53 feet; THENCE N 20050'19"E,25.00 feet; THENCE N 25022'44"W, 111.32 feet; THENCE N 13041'36"E,146.01 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right,an arc distance of 23.33 feet,through a central angle of 26°43'59",having a radius of 50.00 feet,the long chord of which bears N 09031'l TV,23.12 feet to the beginning of a reverse curve to the left; THENCE with said reverse curve to the left,an arc distance of 36.14 feet,through a central angle of 41°24'35",having a radius of 50.00 feet,the long chord of which bears N 16°51'35"W, 35.36 feet; THENCE N 37033'53"W, 129.89 feet; THENCE N 90000'00"W, 180.71 feet; THENCE N 78041'24"W, 152.97 feet; THENCE N 63026'15"W,55.90 feet; THENCE N 90000'00"W,820,00 feet; THENCE N 00000'00"E,170.00 feet; THENCE N 90000'00"W,750.00 feet; THENCE S 00000'00"W,545.00 feet; THENCE S 07017'50"W,60.49 feet; THENCE S 14037'03"W,225.51 feet; C&B Job No.014574.010.1.0601 S#Parker September 04,2007 J:VOB\01457401\SUR\WP\LEG\4754_EXmud2_n.doc Paget of MorningStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 5 016391.00010:1051153.03 THENCE S 40042'12"W,204.56 feet; THENCE S 48053'04"E,181.67 feet; THENCE S 41006'56"W, 136.88 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right,an arc distance of 94.00 feet,through a central angle of 107042'57",having a radius of 50.00 feet,the long chord of which bears S 53029'31W,80.76 feet; THENCE S 41006'56"W, 112.29 feet; THENCE N 43024'57"W,90.41 feet; THENCE N 32050'28"W,139.36 feet; THENCE N 59023'48"W, 173.98 feet; THENCE N 67045'11"W,330.00 feet; THENCE S 220 14'49"W,97.79 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right,an arc distance of 113.92 feet,through a central angle of 130032'26",having a radius of 50.00 feet,the long chord of which bears S 77009'43"W,90.83 feet; THENCE N 67045'l 1"W,301.10 feet; THENCE S 22014'49"W, 105.02 feet; THENCE N 70026'11"W,42.95 feet; THENCE N 77004'10"W,42.67 feet; THENCE N 83040'51"W,42.67 feet; THENCE S 89038'35"W, 133.71 feet; THENCE S 76042'29"W,46.11 feet; THENCE S 89029'09"W,135.00 feet; THENCE S 89050'00"W,855.77 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right,an arc distance of 484.44 feet,through a central angle of 15'00'16",having a radius of 1849.86 feet,the long chord of which bears C&B Job No.014574.010.1.0601 S#Parker September 04,2007 J:\JOB\01457401\SUR\WP\LEG\4754—EXmud2—n.doc Page 3 of MorningStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 6 016391.00010:1051153.03 N 07056'34"W,483.05 feet to a TXDOT(Texas Department of Transportation)found; THENCE N 00°27'14"W,796.76 feet to a TXDOT found,the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 461.67 feet,through a central angle of 03°29'2V,having a radius of 7579.44 feet,the long chord of which bears N 01'19'36"E,461.59 feet; THENCE S 89°16'35"E,2435.23 feet fence post found; THENCE S 00025'15'E,247.80 feet to a fence post found; THENCE N 89°57'17'E,4214.04 feet to the POINT OF BEGINNING and containing 180.219 acres of land,more or less. NOTE This document was prepared under 22TAC§663.21,does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property,except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. C&B Job No.014574.010.1.0601 S#Parker September 04,2007 J:\JOB\01457401\SURIWP\LEG\4754_EXmud2_n.doc Page 4 of 4 MorningStar Ranch MUD No. 2 Exhibit B to Strategic Partnership Agreement-Page 7 016391.00010:1051153.03 Exhibit C Map of Original Commercial Property TRACT i MUD NO.2 TRACT 2 MUD NO.1 1 I 1 I P4 �O a I I C`1 M M MUD NO.2 MUD NO.1 I OLD WEATHERFORD ROAD i v ORIGINAL COMMERCIAL liE PROPERTY s Crime swIl. EXHIBIT ux+�xxnicea.we _ - JOB # 014574 ---T---F DATE: 8.27.07 DRAWN: JST DESIGNED: DGN=q•\Inch\014367\clv\EXHIBITS\20070713 - H&L\SPA - Exh C.sht CoDyrIgh**2007 py Correr& Burgess,lnc. MorningStar Ranch MUD No. 2 Exhibit C to Strategic Partnership Agreement Page 1 016391.00010:1051153.03 Exhibit D Legal Description of Original Commercial Property EXHIBIT"D-1" LEGAL DESCRIPTION COMMERCIAL TRACT 1 5.352 ACRES BEING a tract of land situated in the M.S.Teeter Survey,Abstract No.2070,Parker County, Texas and being a portion of that tract of land as described by deed to WYA THE RANCH AT MARY'S CREEK,LTD.and recorded in Book 2463,Page 618,Deed records,Parker County, Texas,and being more particularly described by metes and bounds as follows: COMMENCING at a TXDOT(Texas Department of Transportation)monument found at the northwest corner of said WYA THE RANCH AT MARY'S CREEK,LTD.tract,being in the east line of Farmer Road(Farmer to Market Highway No.3325,right-of way varies),also being the southwest comer of The Lyon Living Trust Tract 1 as recorded in Book 1870,Page 1479, said County Records; THENCE S 89'16'35"E, 135.73 feet along the southerly line of said Lyon Tract 1 and the northerly line of said WAY THE RANCH AT MARY'S CREEK,LTD tract; THENCE S 00'25'13"E,546.28 feet; THENCE N 89033'53"E,50.00 feet to the POINT OF BEGINNING; THENCE N 89'33'53"E,397.66 feet; THENCE S 70'34'44'T, 122.38 feet; THENCE N 89'41'53"E,319.65 feet; THENCE S 17'43'02"W,318.41 feet to the beginning of a non-tangent curve to the left; THENCE with said curve to the left,an arc distance of 395.63 feet,through a central angle of 18'03'43"having a radius of 1255.00 feet,the long chord of which bears N 81'25'23"W,393.99 feet; THENCE S 89'32'46"W,344.16 feet; THENCE N 00'25'13"W,283.27 feet to the POINT OF BEGINNING and containing 5.027 acres of land,more or less. NOTE This document was prepared for informational purposes only and does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property. C&B Job No. 014574.010.001.0447 J:\1OB\01457401\SUR\WP\LEG\COMMERCI.DOC August 31,2007 Page 1 of 1 I MorningStar Ranch MUD No. 2 Exhibit D to Strategic Partnership Agreement Page 1 016391.00010:1051153.03 EXHIBIT KD-2" LEGAL DESCRIPTION COMMERCIAL TRACT 2 10.636 ACRES BEING a-tract of land situated in the M.S.Teeter Survey,Abstract No.2070,Parker County, Texas and being a portion of that tract of land as described by deed to WYA THE RANCH AT MARY'S CREEK,LTD.and recorded in Book 2463,Page 618,Deed records,Parker County, Texas,and being more particularly described by metes and bounds as follows: COMMENCING at a TXDOT(Texas Department of Transportation)monument found at the northwest corner of said WYA THE RANCH AT MARY'S CREEK,LTD.tract,being in the east line of Farmer Road(Farmer to Market Highway No.3325,right-of way varies also being the southwest comer of The Lyon Living Trust Tract 1 as recorded in Book 1870,Page 1479, said County Records; THENCE S 89016'35"E,135.73 feet along the southerly line of said Lyon Tract I and the northerly line of said WAY THE RANCH AT MARY'S CREEK,LTD.tract; THENCE S 00°25'13'E,939.56 feet; THENCE N 89-32'46"E,50.00 feet to the POINT OF BEGINNING; THENCE N 89032'46"E,344.22 feet to the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 365.39 feet,through a central angle of 18*1 TOY having a radius of 1145.00 feet,the long chord of which bears S 81*18'43"E,363.84 feet; THENCE S 22°14'49"W,355.35 feet; THENCE S 00-10'00E,412.60 feet•, THENCE S 89050'00"W,493.60 feet to the beginning of a non-tangent curve to the right; THENCE with said curve to the right,an arc distance of 486.72 feet,through a central angle of 16°54'09"having a radius of 1649.86 feet,the long chord of which bears N 08*51'08"W,484.95 feet; THENCE N 00°25'13"W,315.92 feet to the POINT OF BEGINNING and containing 10.636 acres of land,more or less. NOTE This document was prepared for informational purposes only and does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property. C&.B Job No.014574.010.001.0447 September 30,2007 J:UOB\014574011.SUR\WP\LEG\COMMERC2.DOC Page 1 of 1 MorningStar Ranch MUD No. 2 Exhibit D to Strategic Partnership Agreement Page 2 0 1639 l.00010:105 l 153.03 ;� -- 0/ Buddv Garcia, Chairman Larry R. Soward, Commissioner Bryan W.Shaw,Ph.D.,Commissioner Mark R.Vickery,P.G.,Executive Director TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution March 25, 2009 Ms. Angela Stepherson Coats, Rose, Yale, Ryman & Lee PC 5420 LBJ Freeway, Suite 1300 Dallas, Texas 75240 Re: Publication of Notice of District Petition regarding creation of Morningstar Ranch MUD 2 TCEQ Internal Control No. 02262009-D02 Dear Ms. Stepherson: Enclosed is a copy of the notice for the above petition. Please carefully review the notice for accuracy prior to publication and distribution. Contact Greg Charles, District Administration Office, at 512/239-4638, if the notice is found to be in error. This full notice, including Exhibits A and B, must be published in accordance with 30 Texas Administrative Code Section 293.12, at your client's expense. in a newspaper (or newspapers) regularly published or circulated in the county or counties in which the proposed district is to be located. Publication shall be once a week for two consecutive weeks. The 30-day comment period will begin on the day after the date of the second publication. In addition, pursuant to 30 Texas Administrative Code 293.12, you are required to post the enclosed notice, including Exhibits A and B "..on the bulletin board used for posting legal notices in each county in which all or part of the proposed district is to be located." This notice should be posted so that it is available to the public no later than the date of your second newspaper publication. After notice has been published and posted in accordance with 293.12, please provide proof of these actions to the Chief Clerks Office (Mail Code 105). The proof for newspaper publication shall be the original TCEQ affidavit of publication completed and notarized by the newspaper and an original tear sheet from the newspaper. The proof of posting can be in the form of an affidavit signed by a representative for the proposed district, stating all facts of the posting action. P.O. Box 13087 0 Austin, Texas 78711-3087 0 512-239-1000 0 Internet address:wtina.tceq.state.tx.us The Chief Clerk's Office should receive all affidavits no later than 14 days after the second publication of the notice in the newspaper. If you have any questions regarding these publication requirements, please contact Irma Salazar in this office at 512/239-1328. Sincerel , L onna'Cast -uela {� 'ef Clerk LDC/is Enclosures cc: To all on attached mailing list. MAILING LIST Morningstar Ranch Municipal Utility District No. 2 TCEQ Internal Control No. 02262009-D02 Ms. Angela M. Stepherson Coats, Rose, Yale, Ryman& Lee, PC 5420 LBJ Freeway. Suite 1300 Dallas, Texas 75240 Mr. Marc P. Paquette, P.E. JacobsCarter Burgess, Inc. 77 Main Street Fort Worth, Texas 76102 Tony Walker TCEQ Region 4 2309 Gravel Drive Ton`v►'orth, Texas 76118-695 Marty Hendrix,Hendrix City Secretary City of Fort Worth 1060 Throckmorton Fort Worth, Texas 76102 Jeane Brunson, County Clerk Parker County 1112 Santa Fe Drive Weatherford, Texas 76086 R. Michael Eastland, Executive Director North Central Texas Council of Governments P.O. Box 5888 Arlington, Texas 76005-5888 Texas Commission on Environmental Quality P. O. Box 13087 Austin, Texas 78711-3087 Todd Galiga, Senior Attorney, Environmental Law Division, MC-173 Greg Charles, Technical Manager, Utilities and Districts Section, MC-152 Skip Ferris,Utilities and Districts Section, MC-152 Komal Patel, Utilities&Districts Section, Water Supply Division, MC-153 Blas Coy, Office of the Public Interest Counsel, MC-103 r TCEQ-OFFICE OF THE CHIEF CLERK Morningstar Ranch MUD 2 MC-105 Attn: Notice Team TCEQ IC No. 02262009-1302 CID#67667 PO Box 13087 Notice of District Petition—Creation Austin TX 78711-3087 AFFIDAVIT OF PUBLICATION STATE OF TEXAS COUNTY OF Before me, the undersigned authority, on this day personally appeared , who being by me duly sworn, (name of newspaper representative) deposes and says that (s)he is the (title of newspaper representative) of the ; that said newspaper is regularly (name of newspaper) published or circulated in County/Counties, (name of county or counties) Texas; that the attached notice was published in said newspaper on the following dates: (date or dates of publication) Newspaper Representative's Signature Subscribed and sworn to before me this the day of , 20 , to certify which witness my hand and seal of office. Notary Public in and for the State of Texas (Seal) Print or Type Name of Notary Public My Commission Expires t TEXAS COMMISSION ON ENVIRONMENTAL QUALITY TL O, 0 IRV 1r �� j NOTICE OF DISTRICT PETITION TCEQ Internal Control No. 02262009-D02 PETITION. WYA THE RANCH AT MARY'S CREEK, Ltd. (Petitioner) filed a petition for creation of Morningstar Ranch Municipal Utility District No. 2 of Parker County (District) with the Texas Commission on Environmental Quality (TCEQ). The petition was filed pursuant to Article XVI, Section 59 of the Constitution of the State of Texas; Chapters 49 and 54 of the Texas Water Code; 30 Texas Administrative Code Chapter 293; and the procedural rules of the TCEQ. The petition states the following: (1) the Petitioner is the owner of a majority in value of the land, consisting of two tracts, to be included in the proposed District; (2) there is one lien holder, Premier Bank, on the property to be included in the proposed District; (3) the proposed District will contain approximately 356.829 acres located in Parker County, Texas; and (4) the land within the proposed District is within the extraterritorial jurisdiction of the City of Fort Worth, Texas (City). The territory to be included in the proposed District is set forth in a metes and bounds description designated as Exhibit "A" and is depicted in the vicinity map designated as Exhibit "B" both of which are attached to this document. The petition further states that the proposed District: (1) will purchase, construct, acquire, provide, maintain and operate a waterworks and sanitary sewer system for municipal, domestic, industrial and commercial purposes; (2) will acquire, construct, operate and maintain a system to gather, conduct, divert, and control local storm water or other local harmful excesses of water within the District; (3) will acquire, construct, provide for a system of thoroughfare, arterial, and collector roads; and (4) may purchase, construct, acquire, provide, operate, maintain, repair, improve, or extend inside or outside of its boundaries such additional improvements, facilities, plants, equipment, and appliances consistent with the purposes for which the District is organized, all as more particularly described in an engineer's report filed simultaneously with the filing of the petition. According to the petition, the Petitioner has conducted a preliminary investigation to determine the cost of the project and from the information available at the time, the cost of the project is estimated to be approximately $24,354,595. s 1 CONTESTED CASE HEARING. The TCEQ may grant a contested case hearing on this petition if a written hearing request is filed within 30 days after the newspaper publication of this notice. To request a contested case hearing, you must submit the following: (1) your name (or for a group or association, an official representative), mailing address, daytime phone number, and fax number, if any; (2) the name of the Petitioner and the TCEQ Internal Control Number; (3) the statement "Uwe request a contested case hearing"; (4) a brief description of how you would be affected by the petition in a way not common to the general public; and (5) the location of your property relative to the proposed District's boundaries. You may also submit your proposed adjustments to the petition. Requests for a contested case hearing must be submitted in writing to the Office of the Chief Clerk at the address provided in the information section below. The Executive Director may approve the petition unless a written request for a contested case hearing is filed within 30 days after the newspaper publication of this notice. If a hearing request is filed, the Executive Director will not approve the petition and will forward the petition and hearing request to the TCEQ Commissioners for their consideration at a scheduled Commission meeting to determine whether a contested case hearing will be held. If a contested case hearing is held, it will be a legal proceeding similar to a civil trial in state district court. INFORMATION. Written hearing requests should be submitted to the Office of the Chief Clerk, MC 105, TCEQ, P.O. Box 13087, Austin, TX 78711-3087. For information concerning the hearing process, please contact the Public Interest Counsel, MC 103, at the same address. For additional information, individual members of the general public may contact the Districts Review Team, at 1-512-239-4691. Si desea informacion en Espanol, puede Ilamar al 1-512-239- 0200. General information regarding TCEQ can be found at our web site at www.tceq.state.tx.us. Issued: March 25, 2009 EXHIBIT A LEGAL DESCRIPTION MorningStar RANCH MUD No.2 North BEING a tract of land situated in the J.D. Morris Survey,Abstract Number 927, and the M.S. Teeter Survey, Abstract Number 2070, both of Parker County,Texas, and being a portion of that tract of land conveyed to WYA THE RANCH AT MARY'S CREEK,LTD. by deed recorded in Book 2463,Page 618 of County Records, Parker County, Texas and being more particularly described by metes and bounds as follows; BEGINNING at a fence post found at the northeast corner of said WYA THE RANCH AT MARY'S CREEK,LTD. tract; THENCE S 00022'37"W, 354.77 feet along the east line of said WAY THE RANCH AT MARY'S CREEK,LTD. tract; THENCE N 90000'00"W, 121.22 feet; THENCE S 38052'39"W, 65.14 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left, an arc distance of 43.25 feet, through a central angle of 49°33'56",having a radius of 50.00 feet, the long chord of which bears S 81°10'36"W, 41.92 feet; THENCE S 89036'00"W,73.55 feet; THENCE S 00000'00"W,750.02 feet; THENCE S 89°36'00"W, 541.14 feet; THENCE N 00000'00"E, 19.64 feet; THENCE N 90000'00"W, 170.00 feet; THENCE S 00000'00"W, 340.00 feet; THENCE N 90000'00"W, 120.00 feet; THENCE N 81003'37"W, 51.32 feet; THENCE S 89036'00"W, 119.30 feet; THENCE N 00000'00"E, 264.84 feet; THENCE N 63005'05"W, 143.02 feet; C&B Job No. 014574.010.1.0601 S#Parker February 13, 2008 J:VOB\01457401\SUR\WP\LEG\4754_EXmud2_n.doc Page 1 of 4 THENCE N 71°15'S4"W, 117.86 feet; THENCE S 48°30'03"W, 90.00 feet; THENCE S 40014'35"W, 80.41 feet; THENCE N 68011'35"W, 123.38 feet; THENCE N 50027'56"W, 51.97 feet; THENCE N 64033'52"W, 139.53 feet; THENCE N 20050'19"E, 25.00 feet; THENCE N 25022'44"W, 111.32 feet; THENCE N 13041'36"E, 146.01 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right, an arc distance of 23.33 feet,through a central angle of 2614359",having a radius of 50.00 feet, the long chord of which bears N 09031'17"W, 23.12 feet to the beginning of a reverse curve to the left; THENCE with said reverse curve to the left, an arc distance of 36.14 feet,through a central angle of 41024'35", having a radius of 50.00 feet, the long chord of which bears N 16"51'35"W, 35.36 feet; THENCE N 37033'53"W, 129.89 feet; THENCE N 90000'00"W, 180.71 feet; THENCE N 78041'24"W, 152.97 feet; THENCE N 63026'15"W, 55.90 feet; THENCE N 90000'00"W, 820.00 feet; THENCE N 00°00'00"E, 170.00 feet; THENCE N 90000'00"W, 750.00 feet; THENCE S 00000'00"W, 545.00 feet; THENCE S 07017'50"W, 60.49 feet; THENCE S 14037'03"W, 225.51 feet; i C&B Job No. 014574.010.1.0601 S#Parker February 13,2008 J:\JOB\01457401\SUR\WP\LEG\4754_EXmud2_n.doc Page 2 of 4 THENCE S 40042'12"W, 204.56 feet; THENCE S 48053'04"E, 181.67 feet; THENCE S 41006'56"W, 136,88 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right, an are distance of 94.00 feet, through a central angle of 107°42'57", having a radius of 50.00 feet, the long chord of which bears S 53°29'31"W, 80.76 feet; THENCE S 41006'56"W, 112.29 feet; THENCE N 4302457"W, 90.41 feet; THENCE N 32050'28"W, 139.36 feet; THENCE N 59023'48"W, 173.98 feet; THENCE N 67045'11"W, 330.00 feet; THENCE S 22014'49"W, 97.79 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right, an are distance of 113.92 feet, through a central angle of 130032'26",having a radius of 50.00 feet,the long chord of which bears S 77°09'43"W, 90.83 feet; THENCE N 67045'11"W, 30 1.10 feet; THENCE S 22014'49"W, 105.02 feet; THENCE N 70026'11"W, 42.95 feet; THENCE N 77004'10"W, 42.67 feet; THENCE N 83040'51"W, 42.67 feet; THENCE S 89038'35"W, 133.71 feet; THENCE S 76042'29"W,46.11 feet; THENCE S 89029'09"W, 135.00 feet; THENCE S 89050'00"W, 855.77 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right, an arc distance of 484.44 feet, through a central angle of 15°00'16", having a radius of 1849.86 feet, the long chord of which bears C&B Job No. 014574.010.1.0601 S#Parker February 13, 2008 J:VOB\01457401\SUR\WP\LEG\4754 EXmud2_n.doc Page 3 of 4 N 07056'34"W, 483.05 feet to a TXDOT (Texas Department of Transportation)found; THENCE N 00027'14"W, 796.76 feet to a TXDOT found, the beginning of a curve to the right; THENCE with said curve to the right, an are distance of 461.67 feet, through a central angle of 03°29'24", having a radius of 7579.44 feet, the long chord of which bears N O1119'36"E,461.59 feet; THENCE S 89016'35"E, 2435.23 feet fence post found; THENCE S 00025'15"E, 247.80 feet to a fence post found; THENCE N 89057'17"E,4214.04 feet to the POINT OF BEGINNING and containing 180.219 acres of land, more or less. NOTE This document was prepared under 22TAC §663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property, except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. C&B Job No. 014574.010.1.0601 S#Parker February 13,2008 J:UOB\01457401\SUR\WP\LEG\4754_EXmud2_n.doc Page 4 of 4 r LEGAL DESCRIPTION MorningStar RANCH MUD No.2 South BEING situated in the M. Teeter Survey,Abstract Number 2070, the P.J.McClary Survey, Abstract Number 907, and the W. Cagle Survey, Abstract Number 2373,Parker County,Texas, and being a portion of that tract of land described by deed to WYA THE RANCH AT MARY'S CREEK, LTD. as recorded in Book 2463, Page 618, Deed Records, Parker County,Texas, and being more particularly described by metes and bounds as follows: COMMENCING at a Texas Department of Transportation (TXDOT)monument found at the northerly southwest comer of said WYA THE RANCH AT MARY'S CREEK, LTD. tract.; THENCE along the westerly line of said WAY THE RANCH AT MARY'S CREEK, LTD. tract, the following bearings and distances: N 00032'56"W,562.53 feet to the POINT OF BEGINNING; N 00032'56"W,289.44 feet to a 1/2 inch iron rod with cap found; N 00°32'34"W,292.60 feet to a TXDOT monument found; N 00013'30"W, 12.98 feet to an iron rod found; N 00032'18"W, 1787.12 feet; N 04056'41"E, 50.20 feet; N 00030'10"W, 100.04 feet to a TXDOT monument found; N 06014'31"W,50.09 feet to a TXDOT monument found; N 00028'55"W,47.43 feet to a TXDOT monument found; N 02002'20"W, 155.80 feet to a TXDOT monument found; N 06027'57"E, 104.41 feet to a TXDOT monument found; N 06045'31"W,221.88 feet; THENCE S 89057'22"E, 347.64 feet leaving said westerly line; THENCE N 87004'13"E, 50.05 feet; THENCE N 71034'26"E, 96.53 feet; I C&B Job No. 014574.010.1.0601 S#Parker February 13,2008 J:\JOB\01457401\SUR\WP\LEG\4754_exmud2_s.doc Page 1 of 3 THENCE N 70049'02"E,45.68 feet; THE, N 57044'58"E, 461.86 feet; THENCE N 69039'33"E, 180.01 feet; THENCE S 23002'17"E, 84.57 feet; THENCE N 86017'21"E, 96.81 feet; THENCE S 07053'29"E, 230.10 feet; THENCE S 16010'32"E, 171.96 feet; THENCE S 24050'19"E,405.32 feet; THENCE N 65009'41"E,310.00 feet; THENCE S 24050'19"E, 1167.78 feet; THENCE N 69016'09"E; 168.18 feet; THENCE N 65000'30"E, 131.35 feet; THENCE S 65008'10"E, 271.21 feet; THENCE S05040'55"E, 127.64 feet; THENCE N83024'51"E,55.99 feet; THENCE S06035'44"E, 1400.02 feet; THENCE S83024'16"W, 15.00 feet; THENCE S06035'44"E, 110.00 feet; THENCE S83024'16"W, 350.00 feet; THENCE S75023'58"W, 157.00 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left, an arc distance of 14.10 feet, through a central angle of 16009'31",having a radius of 50.00 feet, the long chord of which bears S56016'54"E, 14.05 feet to the beginning of a reverse curve to the right; C&B Job No. 014574.010.1.0601 S#Parker February 13,2008 J:VOB\01457401\SUR\WP\LEG\4754_exmud2_s.doc Page 2 of 3 THENCE with said reverse curve to the right, an arc distance of 113.11 feet, through a central angle of 129°36'58", having a radius of 50.00 feet, the long chord of which bears S00°26'49"W, 90.49 feet; THENCE S05039'40"W,22.14 feet; THENCE S30003'08"W, 137.47 feet; THENCE S47038'34"W, 190.28 feet; THENCE N81059'04"W,494.11 feet; THENCE N08°42'25"E, 137.06 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance of 104.46 feet, through a central angle of 11017'33",having a radius of 530.00 feet, the long chord of which bears N14°21'11"E, 104.29 feet; THENCE N19059'58"E, 119.12 feet; THENCE N70°49'05"W, 106.81 feet; THENCE N78005'25"W, 94.26 feet; THENCE N86027'16"W, 95.53 feet; THENCE S87009'53"W,46.34 feet; THENCE S85°48'15"W, 1514.69 feet to the POINT OF BEGINNING and containing 176.610 acres of land more or less. NOTE This document was prepared under 22TAC §663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property, except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. C&B Job No. 014574.010.1.0601 S#Parker February 13, 2008 J:ITOB\01457401\SUR\WP\LEG\4754_exmud2_s.doc Page 3 of 3 ^ ^ __. __-_. ----_ . � � 20 DO 20 r1l,�IT AA � �( > Pagel of 2 Tidwell, Allison From: Gray, Allison M. Sent: Wednesday, August 19, 2009 11:10 AM To: Gonzales, Ronald; Alanis, Susan Cc: Fullenwider, Sarah; Burghdoff, Dana; Hendrix, Marty; Cole, Tennie; Madison, Menique; Otis, Sarah; Seidel, Nicole M.; Tidwell, Allison; Tinker, Marlena; Knight, Beth Subject: RE: MUD Contracts Ron, I have contacted Marcella Olson, the attorney for the Municipal Utility District and she has spoken to the representatives of the district. The contracts that we received and were partially executed were picked up and returned to the District for their execution and recording. The contracts required that the documents be executed within 60 days of the confirmation of the district. Due to the economy and some personnel changes with the property owner the district has not yet been confirmed. There is not a date certain for that district confirmation. So Ron, the contracts are in the possession of the Municipal Utility District and have not been fully executed yet. The property owner believes that someone will purchase the property, confirm the district, execute the contracts and move forward. Unfortunately, I can't tell you when we will get fully executed contracts returned to us. If you have any questions or need further information please let me know and I will tell you what I can, Allison From: Gonzales, Ronald Sent: Thursday, August 13, 2009 3:31 PM To: Alanis, Susan; Gray, Allison M. Cc: Fullenwider, Sarah; Burghdoff, Dana; Hendrix, Marty; Cole, Tennie; Madison, Menique; Otis, Sarah; Seidel, Nicole M.; Tidwell, Allison; Tinker, Marlena Subject: RE: MUD Contracts I1' the pl-actice cannot be tinspended thell Nve I-eco►nn►('ncl t�vo copies of the contract be I►rovi(le(l I'm. n►►n►bel-ing. We will Maintain a cope heiv for ifiV 01'1'i(.i;11 I.V(I)NI (► ►(1 r14nr►► onV to You for 1'1111 execlition. 'I'1►,►nk You suti►in and kllison. Ikon From: Alanis, Susan Sent: Thursday, August 13, 2009 3:08 PM To: Gonzales, Ronald; Gray, Allison M. Cc: Fullenwider, Sarah; Burghdoff, Dana Subject: Re: MUD Contracts Ron: I will find out why you haven't received it and resolve that if possible. It will not be possible to suspend this practice altogether due to the cross-referencing in them. It has always been anticipated that there could be a long gap before final execution because some cannot be signed until formation of the separate governmental entities. With the slowdown in development, they may be slowed even further. It makes sense to me for your office to have the official record even though they are partially executed so they are available for public inquiry. Allison: Please see what is going on with these in particular. 8/19/2009 Page 2 of 2 Thanks, Susan From: Gonzales, Ronald To: Gray, Allison M. Cc: Burghdoff, Dana; Alanis, Susan Sent: Thu Aug 13 14:59:23 2009 Subject: MUD Contracts Allison, I have been informed that, our office has assigned 14 contract numbers, for MITI) contracts for which we have not received the fully executed dociunent. The contract numbers are as follows: 36200, 362019 36202, 36462, 364639 364649 364659 36466, 36467, 36468, 37136, 371379 37138, 37139 and 37140 In the past, Marty had agreed to issue contract numbers for the MITI) contracts as we were advised that we would receive the executed contract for processing and maintenance upon all signatures being obtained. Since we have not received the executed copies for the above MITI) contracts, Marty has directed that effective today we are not to issue contract nuunbers for any MITI) contract that is not fully executed. At your earliest opportunity, please provide the executed copies of the above MITI) contracts for our records, if a,va,ilable. If they are not available, please advise who we tray contact to obtain the copies. Thank you. Ron Gonzales Assistant City Secretary, City of Foil, Worth Ronald.Gonzales(i fortworth roh , v.or 817.392.6164 "With Our Teamworl, the I.1rmm Works" 8/19/2009