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HomeMy WebLinkAboutContract 36633 CITY SECRETARY ���CONTRACT NO ECONOMIC DEVELOPMENT PROGRAM AGREEMENT This ECONOMIC DEVELOPMENT PROGRAM AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas, and CARLYLE/CYPRESS WEST 7TH9 LP ("Developer"), a Delaware limited partnership. RECITALS The City and Developer hereby agree that the following statements are true and correct and constitute the basis upon which the City and Developer have entered into this Agreement: A. Developer owns or is under contract to purchase, or has control of design and redevelopment rights on, approximately fifteen (15) acres of land in the City in the vicinity of West 7th Street and University Drive (the "Development Property"), as more specifically depicted and described in Exhibit "A", attached hereto and hereby made a part of this Agreement for all purposes. The Development Property currently consists of a mixture of vacant lots and buildings that, in most cases, are dilapidated. B. Developer intends to cause construction of a mixed-use development on the Development Property at three potential levels of investment (the Level 1 Development, the Level 2 Development and the Level 3 Development), each of which is more specifically defined in Section 2 of this Agreement (generally and collectively referred to hereafter as the "Development"). The proposed Development is generally depicted in the schematic attached hereto as Exhibit "B", which is hereby made a part of this Agreement for all purposes. Developer has represented to the City that the Development will not be feasible financially without public assistance due to, among other things, obsolete infrastructure on and around the Development Property; the need for the construction of parking garages for the benefit of the Development (and not for general public parking), which are necessary to achieve the public purpose of making the Development more dense, consistent with recommendations set forth in the Comprehensive Plan for mixed-use growth centers, as outlined more specifically in Recital C hereof; the necessity of reconfiguring and/or relocating existing utility facilities; the demolition of existing structures on the Development Property; and various environmental issues. C. The 2007 Comprehensive Plan, adopted by the City Council on February 20, 2007 pursuant to Ordinance No. 17413-02-2007 (the "Comprehensive Plan") defines a mixed-use growth center as a relatively small urbanized area that contains a a{oncentration of jobs, housing units, schools, parks and other public facilitie , public transportation hubs and pedestrian activities. Among the potential benefits of iked-use Page 1L �`11iJ Economic Development Program Agreement � between City of Fort Worth and Cypress Equities I,LP. 02-1S-O8 A09:22 IN growth centers cited by the Comprehensive Plan are economic development; the development of multifamily housing at appropriate locations; efficiency in the provision of public facilities and services; reduced reliance upon single-occupancy vehicles; and the protection of the environment. Accordingly, the Comprehensive Plan cites the promotion of mixed-use growth center development patterns as a goal that the City should embrace. The Comprehensive Plan identifies the cultural district area of the City as a regional mixed-use growth center. In 2001 the City Council selected West 7th Street as one of eight commercial corridors in the City where revitalization efforts were most needed and where use of public incentives could most sensibly be focused. D. As recommended by the Comprehensive Plan and in accordance with Resolution No. 2704, adopted by the City Council on January 30, 2001, the City has established an economic development program pursuant to which the City will, on a case- by-case basis, offer economic incentive packages authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants of public money, as well as the provision of personnel and services of the City, to businesses and entities that the City Council determines will promote state or local economic development and stimulate business and commercial activity in the City in return for verifiable commitments from such businesses or entities to cause specific infrastructure, employment and other public benefits to be made or invested in the City(the 11380 Program"). E. The City Council has determined that by entering into this Agreement, the potential economic benefits that will accrue to the City under the terms and conditions of this Agreement are consistent with the City's economic development objectives and that promoting mixed-use development in the Central City will further the goals espoused by the Comprehensive Plan for positive growth in the City. In addition, the City Council has determined that the 380 Program is an appropriate means to achieve the construction of the Development, which the City Council has determined is necessary and desirable, and that the potential economic benefits that will accrue to the City pursuant the terms and conditions of this Agreement are consistent with the City's economic development objectives as outlined in the Comprehensive Plan, This Agreement is authorized by Chapter 380 of the Texas Local Government Code. F. The City has determined that the feasibility of the Development is contingent on Developer's receipt of the Program Grants, as provided in this Agreement. The City's analysis is specifically based on financial information provided by Developer. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Paget Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. AGREEMENT 1. INCORPORATION OF RECITALS. The City Council has found, and the City and Developer hereby agree, that the recitals set forth above are true and correct and form the basis upon which the parties have entered into this Agreement. 2. DEFINITIONS. In addition to terms defined in the body of this Agreement, the following terms shall have the definitions ascribed to them as follows: 380 Program has the meaning ascribed to it in Recital D. Affiliate means (i) an entity to be formed by Developer to own the Development ; (ii) all entities, incorporated or otherwise, under common control with, controlled by or controlling Developer; and (iii) all entities, incorporated or otherwise, under common control with, controlled by or controlling Cypress Equities, LLC, a Texas limited liability company, and/or Carlyle Retail I, LLC, a Delaware limited liability company, and/or Carlyle/Cypress Retail I, L.P., a Delaware partnership. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Affordable Housing Commitment has the meaning ascribed to it in Section 4.7. Affordable Housing Units has the meaning ascribed to it in Section 4.7. Certificate of Completion has the meaning ascribed to in Section 5.1. Commercial means and includes retail, restaurant, theater, health club, entertainment, and similar services. Completion Date means the date on which the City receives Developer's Notice of Completion. Completion Deadline means December 31, 2011. Comprehensive Plan has the meaning ascribed to it in Recital C. Construction Costs means the aggregate of Hard Construction Costs, Hotel Construction Costs, Tenant Improvement Costs, and the following costs directly expended by Developer or by third parties other than Developer for the Development: engineering fees; architectural and design fees; real estate commissions; costs of third Page 3 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. party consultants, including attorneys and environmental consultants; developer fees; zoning fees; insurance and taxes directly related to the construction of the Development; and financing costs, including capitalized interest. Development means the improvements constructed on the Development Property, the entirety of which have certificates of occupancy, either temporary or final, issued by the City as of the Completion Date, and which must, at a minimum, comprise the Level 1 Development and may, at Developer's option, instead comprise the Level 2 Development or the Level 3 Development. Development Personal Property Tax Revenues means ad valorem taxes on Tangible Personal Property located on the Development Property that are received by the City, minus $23,489.15, which amount equals the taxes payable on Tangible Personal Property located on the Development Property for the 2007 tax year. With respect to Tangible Personal Property leased by a Development Property User, Development Personal Property Tax Revenues will include that portion of annual property tax paid by the Development Property User, prorated on a daily basis, which is attributable to the period during which the Development Property User was the lessee of such property. The taxable appraised value of such Tangible Personal Property for any given tax year will be established solely by the appraisal district that has jurisdiction over the Development Property at the time. Development Property has the meaning ascribed to it in Recital A. Development Property User means any person or entity that has the legal right to use all or occupy any portion of the Development for commercial, retail, residential or other lawful purposes, including without limitation, Developer, its contractors and subcontractors, and third party retail and commercial businesses, including the Hotel. Development Real Property Tax Revenues means ad valorem taxes on the Development Property and any improvements located thereon, minus $118,230.23, which amount equals the taxes payable on the Development Property and any improvements located thereon for the 2007 tax year. The taxable appraised value of the Development Property and any improvements located thereon for any given year will be established solely by the appraisal district that has jurisdiction over the Development Property at the time. Development Sales Tax Revenues means revenues received by the City from the one percent (I%) available City sales tax that is presently in effect pursuant to Texas Tax Code §§ 321.101(a) and 321.103, resulting from sales taxes collected by Developer and other Developer Property Users on Sales transacted on the Development Property. Development Sales Tax Revenues specifically excludes all revenues from (i) the Crime Control District Sales Tax imposed by the City pursuant to Texas Tax Code § 323.105 and Texas Local Government Code § 363.005, as may be amended, and (ii) the Transit Authority Sales Tax paid to the City by the Fort Worth Transportation Authority pursuant to City Secretary Contract No. 19689, as previously or subsequently amended or restated, Page 4 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. from the sales tax imposed by the Fort Worth Transportation Authority pursuant to Texas Tax Code Chapter 322. If the City's sales tax rate is ever decreased to the extent that the City receives available sales tax revenues based on less than a one percent (1%) sales tax, then the meaning of Development Sales Tax Revenues shall automatically be adjusted to equal that lesser percentage. If the City's sales tax rate is ever increased to the extent that the City receives revenues from available sales tax pursuant to Texas Tax Code §§ 321.101(a) and 321.103 and whose use is not controlled or regulated, in whole or in part, by another governmental entity or authority or otherwise dedicated to a specific use by the City, then Development Sales Tax Revenues shall be computed to reflect that increased percentage. Director means the director of the City's Economic and Community Development Department. Effective Date has the meaning ascribed to it in Section 3. Employment Goal has the meaning ascribed to it in Section 4.4. First Operating Year means the first full year following the year in which the Completion Date occurs. Fort Worth Certified M/WBE Company means a minority or woman-owned business that (i) has received certification as either a minority business enterprise (MBE), a woman business enterprise (WBE) or a disadvantaged business enterprise (DBE) by the North Texas Regional Certification Agency (NTRCA); (ii) has a principal business office located within the corporate limits of the City; and (iii) from such principal business office performs a function or provides a service useful or necessary for the Development for which Developer is also seeking credit under this Agreement. Fort Worth Company means a business that has a principal office located within the corporate limits of the City that performs a commercially useful function and that provides the services for which Developer is seeking credit under this Agreement. Fort Worth Construction Commitment has the meaning ascribed to it in Section 4.2. Fort Worth Construction Percentage has the meaning ascribed to it in Section 5.2.1.2. Fort Worth Supply and Service Percentage has the meaning ascribed to it in Section 5.2.1.4. Fort Worth Supply and Service Spendiny, Commitment has the meaning ascribed to it in Section 4.5. Page 5 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. yL L%1 pp is, 8 Hard Construction Costs means the aggregate of the following costs expended or caused to be expended by Developer for the Development: actual site development and construction costs, contractor fees, and the costs of supplies and materials, but excludes land acquisition costs paid by Developer for the various parcels that make up the Development Property. Hard Construction Costs specifically excludes Hotel Construction Costs, Tenant Improvement Costs, and any Construction Costs expended for the Development by third parties other than Developer and its contractors and subcontractors. Hotel means a full-service or limited-service building constructed on the Development Property in which members of the public obtain sleeping accommodations for consideration and shall include any appurtenant facilities located therein, such as restaurants or retail establishments. If (i) residential apartments or condominiums are located in the same building or (ii) the Hotel is located on a parcel of land within the Development Property that is separate from the rest of the Development and that is owned and operated by a person or entity other than Developer or an Affiliate, and residential apartments or condominiums are located on the same parcel, then for purposes of this Agreement such residential condominiums will be considered a part of the Hotel and not as Residential Units. Hotel Construction Costs means the following costs directly expended by third parties other than Developer for the Hotel only and not for any other portion of the Development: actual site development and construction costs, the costs of tenant finish- outs, contractor fees, engineering fees, architectural and design fees, and insurance and taxes directly related to the construction of the Development. HUD means the United States Department of Housing and Urban Development or successor agency. Job means a job provided to an individual by a Development Property User on the Development Property. Level 1 Development means the expenditure of between $158,000,000.00 and $178,000,000.00 in Construction Costs, as verified in the Certificate of Completion issued by the City in accordance with Section 5.1, for construction on the Development Property of, at a minimum, the following improvements: (i) at least 200,000 square feet of Commercial space; (ii) Residential Units comprising at least 300,000 square feet; and (iii) at least 80,000 square feet of office space, the entirety of which must have temporary or final certificates of occupancy issued by the City. Level 2 Development means the expenditure of between $178,000,001.00 and $198,000,000.00 in Construction Costs, as verified in the Certificate of Completion issued by the City in accordance with Section 5.1, for construction on the Development Property of, at a minimum, the following improvements: (i) at least 200,000 square feet of Commercial space; (ii) Residential Units comprising at least 300,000 square feet; (iii) at least 80,000 square feet of office space; and (iv) a Hotel comprising at least 80,000 Page 6 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. square feet, the entirety of which must have temporary or final certificates of occupancy issued by the City. Level 3 Development means the expenditure $198,000,001.00 or more in Construction Costs, as verified in the Certificate of Completion issued by the City in accordance with Section 5.1, for construction on the Development Property of, at a minimum, the following improvements: (i) at least 200,000 square feet of Commercial space; (ii) Residential Units comprising at least 300,000 square feet; (iii) at least 180,000 square feet of office space; and (iv) a Hotel comprising at least 80,000 square feet, the entirety of which must have temporary or final certificates of occupancy issued by the City. M/WBE Construction Commitment has the meaning ascribed to it in Section 4.3. M/WBE Construction Pereentage has the meaning ascribed to it in Section 5.2.1.3. M/WBE Supply and Service Pereentape has the meaning ascribed to it in Section 5.2.1.5. M/WBE Supply and Service Spending Commitment has the meaning ascribed to it in Section 4.6. Notice of Completion has the meaning ascribed to it in Section 4.8.2.2. Overall Construction Percentage has the meaning ascribed to it in Section 5.2.1.1. Program Cap means the maximum number of gross dollars comprising all Program Grants that the City is required to pay Developer pursuant to this Agreement, based on the Level of Development constructed on the Development Property, as follows: (a) If Developer achieved the Level 1 Development by the Completion Date, as verified in the Certificate of Completion issued by the City in accordance with Section 5.1, the Program Cap shall equal $25,280,000,00, gross. (b) If Developer achieved the Level 2 Development by the Completion Date, as verified in the Certificate of Completion issued by the City in accordance with Section 5.1, the Program Cap shall equal $28,210,000.00, gross. (c) If Developer achieved the Level 3 Development by the Completion Date, as verified in the Certificate of Completion issued by the City in accordance with Section 5.1, the Program Cap shall equal $31,280,000.00, gross. Pagelt'��L Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Program Grants means the annual economic development grants paid by the City to Developer in accordance with this Agreement and as part of the 380 Program. Program Source Funds means an amount of City funds available for inclusion in a Program Grant that is payable in a given Program Year, which shall equal to seventy- five percent (75%) of the Development Real Property Tax Revenues, plus seventy-five percent (75%) of the Development Personal Property Tax Revenues, plus seventy-five percent (75%) of the Development Sales Tax Revenues which were received by the City during the Twelve-Month Period ending in the same Program Year in which the Program Grant for that Program Year is payable. Program Year means a calendar year in which the City is obligated pursuant to this Agreement to pay Developer a Program Grant, beginning with the first full calendar year following the Completion Date (Program Year 1). Records has the meaning ascribed to it in Section 4.9. Residential Property Taxes means the amount of ad valorem taxes on all Residential Units and condominiums on the Development Property (excluding the Hotel) that are owed to the City for a given tax year. Residential Units means residential rental apartments located anywhere on the Development Property except the Hotel and shall not include residential condominiums. Sales means all sales of merchandise (including gift and merchandise certificates), services and other receipts whatsoever of all business conducted in, on or from the Development Property, whether cash or credit, including mail, telephone, telefax, telegraph, internet or catalogue orders received or filled at or from the Development Property, deposits not refunded to purchasers, orders taken (although such orders may be filled elsewhere), sales to employees, sales through vending machines or other devices. Sales will not include (i) any sums collected and paid for any sales or excise tax imposed by any duly constituted governmental authority, (ii) the exchange of merchandise purchased on and returned to the Development Property, (iii) the amount of returns to shippers and manufacturers or (iv) the sale of any Development Property User's fixtures. Second Operating Year means the second full year following the year in which the Completion Date occurs. Supply and Service Expenditures means all expenditures by Developer, whether pursuant to a written contract or on an ad hoc basis, expended directly for the operation and maintenance of the Development, including amounts paid to third parties for the provision of personnel services, but excluding amounts paid for electric, gas, water and any other utility services. Page 8 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Tangible Personal Property means personal property that is located on the Development Property and is owned or leased by any Development Property User, including, without limitation, inventory, fixtures, store signage, checkout stands, computers, cash registers and security and communications systems. Tenant Improvement Costs means all costs associated with the design, construction, and fixturization within a tenant's premises, including, but not limited to, architectural, contractor, and design fees, building materials and work on a tenant's behalf, and other work performed within the tenant's premises along with the tenant's permanent fixtures. Term has the meaning ascribed to it in Section 3. Twelve-Month Period means the period between February 1 of a given year and January 31 of the following year. 3. TERM. This Agreement shall be effective as of the date of execution by both parties (the "Effective Date") and shall expire on the earlier of(i) the date as of which the City has paid all Program Grants required hereunder or (ii) the date as of which the amount of aggregate Program Grants paid by the City equals the Program Cap (the"Term"). 4. DEVELOPER OBLIGATIONS, GOALS AND COMMITMENTS. 4.1. Real Property Improvements. In accordance with the terms and conditions of this Agreement, by the Completion Date Developer shall have achieved, at a minimum, the Level 1 Development. The Completion Date must occur on or before the Completion Deadline. 4.2. Construction Spending Commitment for Fort Worth Companies. By the Completion Date and regardless of the Level of the Development achieved, Developer shall have expended or caused to be expended the greater of (i) $22 million in Hard Construction Costs for the Development or (ii) thirty percent (30%) of all Hard Construction Costs for the Development, regardless of the total amount of such Hard Construction Costs, with Fort Worth Companies (the "Fort Worth Construction Commitment"). Page Economic Development Program Agreement `� ' ti �iC� between City of Fort Worth and Cypress Equities 1,L.P. 4.3. Construction Spending Commitment for Fort Worth Certified M/WBE Companies. By the Completion Date and regardless of the Level of the Development achieved, Developer shall have expended or caused to be expended the greater of (i) $18 million in Hard Construction Costs for the Development or (ii) twenty-five percent (25%) of all Hard Construction Costs for the Development, regardless of the total amount of such Hard Construction Costs, with Fort Worth Certified M/WBE Companies (the "M/WBE Construction Commitment"). Dollars spent with Fort Worth Certified M/WBE Companies shall also count as dollars spent with Fort Worth Companies for purposes of the Fort Worth Construction Commitment outlined in Section 4.2. 4.4. Employment Goal. From and after the Completion Date, Developer will use commercially reasonable efforts to cause at least five (5) Jobs to be provided on the Development Property(the "Employment Goal"). 4.5. Supply and Service Spending Commitments for Fort Worth Companies. In the Second Operating Year and each calendar year thereafter, Developer and Development Property Users, in the aggregate, shall spend at least $100,000.00 in annual Supply and Service Expenditures with Fort Worth Companies (the "Fort Worth Supply and Service Spending Commitment"). 4.6. Supply and Service Spending Commitment for Fort Worth Certified M/WBE Companies. In the Second Operating Year and each calendar year thereafter, Developer and Development Property Users, in the aggregate, shall spend at least $75,000.00 in annual Supply and Service expenditures with Fort Worth Certified M/WBE Companies (the "M/WBE Supply and Service Spending Commitment"). Dollars spent with Fort Worth Certified M/WBE Companies shall also count as dollars spent with Fort Worth Companies for purposes of the Fort Worth Supply and Service Spending Commitment outlined in Section 4.5. 4.7. Affordable Housing Set-Aside. From and at all times after the Completion Date, at least fifteen percent (15%) of the Residential Units, regardless of the total number of such Residential Units and regardless of the owner of record of any such Residential Units (the "Affordable Housing Units"), shall be set aside for lease as quality affordable housing in accordance with the provisions of this Section 4.7. At least one-third Page 10 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. (1/3) of all Affordable Housing Units will be set aside exclusively for lease to qualifying households whose adjusted incomes do not exceed HUD's then-current sixty percent (60%) income limits for the Fort Worth-Arlington, TX HUD Metro EMR Area at rents that do not exceed thirty percent (30%) of such adjusted incomes. The remainder of the Affordable Housing Units will be set aside exclusively for lease to qualifying households whose adjusted incomes do not exceed HUD's then-current eighty percent (80%) income limits for the Fort Worth-Arlington, TX HUD Metro EMR Area at rents that do not exceed thirty percent (30%) of such adjusted incomes (all of the preceding in this Section 4.7, the "Affordable Housing Commitment"). Developer will cooperate with the City's Housing Department in reasonably publicizing the availability of the Affordable Housing Units. For Developer's reference, HUD's 60% income limits and 80% income limits for the Fort Worth, TX HUD Metro FMR area and an example of the calculation of rent limits based on those income limits are attached hereto as Exhibit "C" and are published annually by HUD (see www.hud.gov and www.huduser.or ). 4.8. Reports and Filings. 4.8.1. Plan for Use of Fort Worth Certified M/WBE Companies. Within thirty (30) calendar days following the Effective Date or prior to the submission of an application by or on behalf of Developer for a permit from the City to initiate any work on the Development (including demolition work), whichever is earlier, Developer will file a plan with the Director as to how Developer intends to meet the M/WBE Construction Commitment and the M/WBE Supply and Service Spending Commitment. Developer agrees to meet with the City's M/WBE Office and Minority and Women Business Enterprise Advisory Committee as reasonably necessary for assistance in implementing such plan and to address any concerns that the City may have with such plan. 4.8.2. Construction Spending Reports. 4.8.2.1. Monthly Reports. From the Effective Date until the Completion Date, in order to enable the City to assist Developer in meeting the M/WBE Construction Commitment, Developer will provide the Director with a monthly report in a form reasonably acceptable to the City that specifically outlines the then-current aggregate Hard Construction Costs expended by and on behalf of Developer for the Development as well as the then-current aggregate Hard Construction Costs expended by and on behalf of Developer for the Development with Fort Worth Certified M/WBE Companies. Developer agrees to meet with the City's M/WBE Office and Page 11 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Minority and Women Business Enterprise Advisory Committee as reasonably necessary for assistance in meeting or exceeding the M/WBE Construction Commitment and to address any related concerns that the City may have. 4.8.2.2. Notice of Completion and Final Construction Report. Developer shall submit a written notice to the Director after certificates of occupancy, whether final or temporary, have been issued by the City for all improvements constructed on the Development Property that Developer intends to complete by the Completion Deadline (the "Notice of Completion"). The purpose of the Notice of Completion is to allow the City (i) to assess whether Developer achieved at least the Level 1 Development and, if so, what specific Level of Development has been achieved; (ii) to assess the extent to which Developer met the Fort Worth Construction Commitment and the M/WBE Construction Commitment, and (iii) to establish the Program Cap under this Agreement. The Notice of Completion will include a final construction report in a form reasonably acceptable to the Director that specifically outlines the total Construction Costs and Hard Construction Costs expended for improvements constructed on the Development Property, together with supporting invoices and other documents necessary to demonstrate that such amounts were actually paid, including, without limitation, final lien waivers signed by Developer's general contractor. This report shall also include actual total Construction Costs and Hard Construction Costs expended by Developer for construction of the Development with Fort Worth Companies and Fort Worth Certified M/WBE Companies, together with supporting invoices and other documents necessary to demonstrate that such amounts were actually paid by Developer to such contractors. Improvements constructed on the Development Property that do not have certificates of occupancy, whether temporary or final,for the entirety of such improvements as of the date of the Notice of Completion (the Completion Date), and any Construction Costs and Hard Construction Costs expended for such improvements, shall not be considered for purposes of determining the Level of Development constructed by Developer or assessing the extent to which Developer met the Fort Worth Construction Commitment or the MIWBE Construction Commitment;provided, however, that improvements constructed on the Development Property that do not have certificates of occupancy, whether temporary or final,for the entirety of such improvements as of the date of the Notice of Completion (the Page 12 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Completion Date) shall, for purposes of this Agreement, be deemed to have certificates of occupancy so long as applications for certificates of occupancy for the entirety of such improvements were properly filed with the City at least two (2) weeks prior to the Completion Date (and complete copies of such applications are included with the Notice of Completion), and the City has not responded to such applications as of the Completion Date. 4.8.3. Annual Employment Report. On or before February 1 of the year following the Completion Date and of each year thereafter, in order for the City to assess the degree to which Developer met the Employment Goal in the previous calendar year, Developer shall provide the Director with a report in a form reasonably acceptable to the City that sets forth the total number of individuals who held Jobs on the Development Property as of December 1 (or such other date requested by Developer and reasonably acceptable to the City) of the previous year, together with reasonable supporting documentation. If Developer failed to meet the Employment Goal in the previous calendar year, Developer shall include an explanation as to why Developer believes it did not meet the Employment Goal and the efforts that Developer utilized to meet the Employment Goal. 4.8.4. Quarterly Supply and Service Spending Report. Beginning with the first calendar quarter of the Second Operating Year, within thirty (30) calendar days following the end of each calendar quarter, Developer will provide the Director with a report in a form reasonably acceptable to the City that sets forth the then-aggregate Supply and Service Expenditures made during such calendar as well as the then- aggregate Supply and Service Expenditures made during such calendar year with Fort Worth Companies and with Fort Worth Certified M/WBE Companies. The City will use each year's fourth quarter report to assess the degree to which Developer met the Fort Worth Supply and Service Spending Commitment and the M/WBE Supply and Service Spending Commitment for that year. 4.8.5. Annual Affordable Housing Report. On or before February 1 of the year following the Completion Date and of each year thereafter, in order for the City to assess the degree to which Developer met the Affordable Housing Commitment in the previous calendar year, Developer shall provide the Director with a report in a form reasonably acceptable to the City that sets forth (i) the total number of Residential Units on the Development Property (excluding the Page 13 Economic Development Program Agreement between City of Fort Worth and Cypress Equities 1,L.P. Hotel); (ii) the total number of Affordable Housing Units; (iii) the number of Residential Units that were under lease at any time during the previous calendar year; (iv) the number of Affordable Housing Units that were under lease at any time during the previous calendar year; and (v) for each Affordable Housing Unit that was under lease at any time during the previous calendar year, sufficient documentation for the City to assess the adjusted income of the tenant leasing such Affordable Housing Unit and the amount of monthly rent paid by that tenant. 4.9. Audits. The City will have the right throughout the Term to audit the financial and business records of Developer that are necessary to evaluate Developer's compliance with this Agreement or with the commitments set forth in this Agreement, including, but not limited to construction documents and invoices (collectively "Records"). Developer shall make all Records available to the City at Developer's offices in the City or at another location in the City acceptable to both parties following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. After issuance of the Certificate of Completion in accordance with Section 5.1, the City will not request a review and audit of the Records more than once in any calendar year. 5. CITY OBLIGATIONS. 5.1. Issuance of Certificate of Completion for Development. Within sixty(60) calendar days following receipt by the City of the Notice of Completion issued by Developer in accordance with Section 4.8.2.2, and assessment by the City of the information contained therein, including the final construction report for the Development, if the City is able to verify that, at a minimum, the Level 1 Development occurred on or before the Completion Date and that the Completion Date occurred on or before the Completion Deadline, the Director will issue Developer a certificate stating the Level of Development that Developer achieved, the amount of Construction Costs and Hard Construction Costs expended on the Development expended on the Development, including amounts expended specifically with Fort Worth Companies and Fort Worth Certified M/WBE Companies, plus the amount of the Program Cap established under this Agreement based on the Level of the Development that Developer achieved (the "Certificate of Completion"). Notwithstanding anything to the contrary herein, improvements constructed on the Development Property that do not have certificates of occupancy, whether temporary or final, for the entirety of such improvements as of the date of the Notice of Completion (the Completion Date), and any Construction Costs and Hard Construction Costs expended for such improvements, shall not be considered for purposes of determining the Level of Development constructed by Developer or assessing Page 14 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. the extent to which Developer met the Fort Worth Construction Commitment or the M/WBE Construction Commitment; provided, however, that improvements constructed on the Development Property that do not have certificates of occupancy, whether temporary or final,for the entirety of such improvements as of the date of the Notice of Completion (the Completion Date) shall, for purposes of this Agreement, be deemed to have certificates of occupancy so long as applications for certificates of occupancy for the entirety of such improvements were properly filed with the City at least two (2) weeks prior to the Completion Date (and complete copies of such applications are included with the Notice of Completion), and the City has not responded to such applications as of the Completion Date. 5.2. Pro;;ram Grants. Subject the terms and conditions of this Agreement, provided that the Level 1 Development occurred by the Completion Date and that the Completion Date occurred on or before the Completion Deadline, Developer will be entitled to receive from the City fifteen (15) annual Program Grants. The amount of each Program Grant shall equal a percentage of the Program Source Funds available for that Program Grant. This percentage is based on the extent to which Developer meets the various construction and operational expenditures for the Development, as more specifically set forth in Section 5.2.1. Program Grants may be reduced or suspended if Developer fails in any given year to meet the Affordable Housing Commitment, as more specifically set forth in Section 4.7. Notwithstanding anything to the contrary herein, aggregate Program Grants payable under this Agreement shall be subject to and shall not exceed the Program Cap. 5.2.1. Calculation of Each Program Grant Amount. Subject to the terms and conditions of this Agreement, the amount of a given Program Grant shall equal the sum of the Overall Construction Percentage, the Fort Worth Construction Percentage and the M/WBE Construction Percentage, as defined in Section 5.2.1.1, 5.2.1.2 and 5.2.1.3, respectively, plus, to the extent applicable, the Fort Worth Supply and Service Percentage and the M/WBE Supply and Service Percentage, as defined in Sections 5.2.1.4 and 5.2.1.5, respectively, multiplied by the Program Source Funds available for that Program Grant. 5.2.1.1. Completion of Development (50%). Each annual Program Grant shall include an amount that is based on Developer's completion of the Development. If, at a minimum, the Level 1 Development occurred by the Completion Date and the Completion Date occurred on or before the Completion Deadline, as confirmed by the City in the Certificate Page 15 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. of Completion issued by the Director in accordance with Section 5.1, each annual Program Grant shall include fifty percent (50%) of the Program Source Funds (the "Overall Construction Percentage"). In no event will the Overall Construction Percentage exceed fifty percent (50%). Notwithstanding anything to the contrary herein, if the Level 1 Development did not occur by the Completion Date or the Completion Date did not occur by the Completion Deadline, an Event of Default, as more specifically set forth in Section 6.1, will occur and the City shall have the right to terminate this Agreement without the obligation to pay Developer any Program Grants hereunder. 5.2.1.2. Fort Worth Construction Cost Spending (Up to 25% for Program Year 1; Up to 20% Thereafter). Each annual Program Grant shall include an amount that is based on the percentage by which the Fort Worth Construction Commitment, as outlined in Section 4.2, was met (the "Fort Worth Construction Percentage"). The Fort Worth Construction Percentage for the Program Grant payable in Program Year 1 will equal the product of twenty-five percent (25%) multiplied by the percentage by which the Fort Worth Construction Commitment was met, which will be calculated by dividing the actual Hard Construction Costs expended by the Completion Date with Fort Worth Companies for the Development by the number of dollars comprising the Fort Worth Construction Commitment, as determined in accordance with Section 4.2. The Fort Worth Construction Percentage for all subsequent Program Grants will equal the product of twenty percent (20%) multiplied by the percentage by which the Fort Worth Construction Commitment was met, calculated in accordance with the preceding sentence. For example (and not as a commitment or goal), if the Fort Worth Construction Commitment is $40,000,000.00 and only $32,000,000.00 in Hard Construction Costs were expended with Fort Worth Companies by the Completion Date, the Fort Worth Construction Percentage for the Program Grant payable in Program Year 1 would be 20% instead of 25% (or .25 x [$32 million/$40 million], or .25 x .80, or .20), and the Fort Worth Construction Percentage for all subsequent Program Grants would be 16% instead of 20% (or .20 x [$32 million/$40 million], or .20 x .80, or .16). If the Fort Worth Construction Commitment is met or exceeded, the Fort Worth Construction Percentage will be twenty- five percent (25%) for the Program Grant payable in Program Year 1 and twenty percent (20%) for all subsequent Program Grants. In no event will the Fort Worth Construction Percentage exceed those Page 16 Economic Development Program Agreement between City of Fort Worth and Cypress Equities 1,L.P. percentages for the respective Program Year in which a Program Grant is payable. 5.2.1.3. Fort Worth M/WBE Construction Cost Spending (Up to 25% for Prol4ram Year 1; Up to 20% Thereafter). Each annual Program Grant shall include an amount that is based on the percentage by which the M/WBE Construction Commitment, as outlined in Section 4.3, was met (the "M/WBE Construction Percentage"). The M/WBE Construction Percentage for the Program Grant payable in Program Year 1 will equal the product of twenty-five percent (25%) multiplied by the percentage by which the M/WBE Construction Commitment was met, which will be calculated by dividing the actual Hard Construction Costs expended by the Completion Date with Fort Worth Certified M/WBE Companies for the Development by the number of dollars comprising the M/WBE Construction Commitment, as determined in accordance with Section 4.3. The M/WBE Construction Percentage for all subsequent Program Grants will equal the product of twenty percent (20%) multiplied by the percentage by which the M/WBE Construction Commitment was met, calculated in accordance with the preceding sentence. For example (and not as a commitment or goal), if the M/WBE Construction Commitment is $32,000,000.00 and only $24,000,000.00 in Hard Construction Costs were expended with Fort Worth Certified M/WBE Companies by the Completion Date, the M/WBE Construction Percentage for the Program Grant payable in Program Year 1 would be 18.75% instead of 25% (or .25 x [$24 million/$32 million], or .25 x .75, or .1875), and the M/WBE Construction Percentage for all subsequent Program Grants would be 15% instead of 20% (or .15 x [$24 million/$32 million], or .20 x .75, or .15). If the M/WBE Construction Commitment is met or exceeded, the M/WBE Construction Percentage will be twenty-five percent (25%) for the Program Grant payable in Program Year 1 and twenty percent (20%) for all subsequent Program Grants. 5.2.1.4. Fort Worth Supply and Service Spending (Up to 5% after Program Year 1). Except for the Program Grant payable in Program Year 1, each annual Program Grant shall include an amount that is based on the percentage by which the Fort Worth Supply and Service Spending Commitment, as outlined in Section 4.5, was met (the "Fort Worth Supply and Service Percentage"). The Fort Page l? Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Q Worth Supply and Service Percentage will equal the product of five percent (5%) multiplied by the percentage by which the Fort Worth Supply and Service Spending Commitment was met, which will be calculated by dividing the actual Supply and Service Expenditures made in the previous calendar year with Fort Worth Companies by $100,000.00, which is the Fort Worth Supply and Service Spending Commitment. For example (and not as a commitment or goal), if only $90,000.00 in Supply and Service Expenditures were made with Fort Worth Companies in the previous calendar year, the Fort Worth Supply and Service Percentage for the Program Grant payable in the following Program Year (other than Program Year 1) would be 4.5% instead of 5% (or .05 x [$90,000/$100,000], or .05 x .90, or .045). If the Fort Worth Supply and Service Spending Commitment is met or exceeded in any given year, the Fort Worth Supply and Service Percentage for the Program Grant payable in the following Program Year will be five percent (5%). Calculation of the Program Grant payable for Program Year 1 does not include the Fort Worth Supply and Service Percentage because the Fort Worth Supply and Service Commitment does not apply to the First Operating Year. 5.2.1.5. Fort Worth M/WBE Supply and Service Spendiniz (Up to 5% after Program Year 1). Except for the Program Grant payable in Program Year 1, each annual Program Grant shall include an amount that is based on the percentage by which the M/WBE Supply and Service Spending Commitment, as outlined in Section 4.6, was met (the "M/WBE Supply and Service Percentage"). The M/WBE Supply and Service Percentage will equal the product of five percent (5%) multiplied by the percentage by which the M/WBE Supply and Service Spending Commitment was met, which will be calculated by dividing the actual Supply and Service Expenditures made in the previous calendar year with Fort Worth Certified M/WBE Companies by $75,000.00, which is the M/WBE Supply and Service Spending Commitment. For example (and not as a commitment or goal), if only $60,000.00 in Supply and Service Expenditures were made with Fort Worth Certified M/WBE Companies in the previous calendar year, the M/WBE Supply and Service Percentage for the Program Grant payable in the following Program Year (other than Program Year 1) would be 4% instead of 5% (or .05 x [$60,000/$75,000], or .05 x .80, or .04). If the M/WBE Supply and Service Spending Commitment is met or exceeded in any given year, the M/WBE Supply and Service Percentage for the Program Grant payable in the following Page 18 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Program Year will be five percent (5%). Calculation of the Program Grant payable for Program Year 1 does not include the M/WBE Supply and Service Percentage because the M/WBE Supply and Service Commitment does not apply to the First Operating Year. 5.2.1.6. No Offsets. A deficiency in attainment of one commitment may not be offset by the exceeding attainment in another commitment. For example, if in a given year Developer failed to meet the M/WBE Supply and Service Spending Commitment by $5,000.00, but exceeded the Fort Worth Supply and Service Spending Commitment by $5,000.00, all Program Grants payable in the following year would still be reduced in accordance with Section 5.2.1.5 on account of Developer's failure to meet the M/WBE Supply and Service Spending Commitment. 5.2.2. Reductions to or Forfeiture of Program Grants for Failure to Comply with Affordable Housing Commitment. If the City determines that Developer has not complied with or is not in compliance with the Affordable Housing Commitment, as outlined in Section 4.7, the City will notify Developer in writing. If Developer disagrees with the City's determination, Developer shall have fourteen (14) calendar days to provide the City with documentation to rebut such determination. If Developer does not provide the City with documentation sufficient to rebut the City's determination within such time, the City's determination shall be deemed conclusive. In this event, notwithstanding anything to the contrary herein, (i) if the Affordable Housing Commitment was not met for an entire calendar year, Developer shall forfeit payment of the full amount of the Program Grant payable in the following year, and (ii) if the Affordable Housing Commitment was not met for a portion of a calendar year, then the amount of the Program Grant payable in the following Program Year (as calculated in accordance with Section 5.2) shall be reduced by a fraction, to be expressed as a percentage, where the numerator is the number of days in that calendar year in which the Affordable Housing Commitment was met and the denominator is 365. Any Program Grant that is forfeited in a given Program Year pursuant to this Section 5.2.2 shall nevertheless count as one of the fifteen (15) annual Program Grants paid in accordance with this Section 5.2. Page 19 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. 5.2.3. Reductions to Program Grants for Condominium Conversion of Residential Units. Developer understands and agrees that full Program Grants are payable under this Agreement only to the extent that all Residential Units are exclusively rental apartments and not condominiums. Notwithstanding anything to the contrary herein (but subject to the last sentence of this Section 5.2.3), if any Residential Units are converted to condominiums, for the remainder of the Term each Program Grant payable in accordance with this Agreement shall be reduced by an amount equal to all Residential Property Taxes owed for the previous tax year, but the amount of any such reduction shall nevertheless be included in calculating the Program Cap. For example, if one-third (1/3) of the Residential Units are converted to condominiums in 2015, the Program Grant otherwise payable in 2016 shall be reduced by an amount equal to all Residential Property Taxes owed for the 2015 tax year. Therefore, by way of example only, if the Residential Property Taxes owed for the 2015 tax year equals $500,000.00, and the Program Grant otherwise payable in 2016 would have been $3 million, the actual Program Grant payable in 2016 would be $2.5 million, but for purposes of calculating the Program Cap, the City will be credited for having made a Program Grant payment of $3 million. If all Residential Units that were converted to condominiums are subsequently leased as rental apartments by Developer or a successor in interest hereunder, then this Section 5.2.3 shall not apply to a Program Grant payable in a given Program Year so long as all Residential Units were used exclusively as rental apartments for the entirety of the previous calendar year. 5.2.4. Program Cap. Once the City has paid Developer aggregate Program Grants equal to the Program Cap, this Agreement shall terminate. If in any Program Year the amount of a Program Grant would cause the aggregate Program Grants paid by the City pursuant to this Agreement to exceed the Program Cap, the amount of the Program Grant payable in that Program Year shall equal the difference between the aggregate of all Program Grants paid by the City as of the previous Program Year and the Program Cap, and this Agreement shall terminate upon payment of such Program Grant. 5.2.5. Deadline for Payments and Source of Funds. The first Program Grant payable hereunder (in other words, the Program Grant payable for Program Year 1) shall be paid by the City on or before June 1 of (i) the Second Operating Year or (ii) the First Operating Year if requested by Developer in writing within sixty (60) Page 20 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. calendar days following the Completion Date and the City, taking into consideration its current fiscal year budget and following fiscal year budget planning, provides Developer with written consent to such request. Each subsequent annual Program Grant payment will be made by the City to Developer on or before June 1 of the Program Year in which such payment is due. It is understood and agreed that all Program Grants paid pursuant to this Agreement shall come from currently available general revenues of the City and not directly from Development Real Property Tax Revenues, Development Personal Property Tax Revenues or Development Sales Tax Revenues. Developer understands and agrees that any revenues of the City other than those dedicated for payment of a given annual Program Grant pursuant to this Agreement may be used by the City for any lawful purpose that the City deems necessary in the carrying out of its business as a home rule municipality and will not serve as the basis for calculating the amount of any future Program Grant or other obligation to Developer. 6. DEFAULT, TERMINATION AND FAILURE BY DEVELOPER TO MEET VARIOUS DEADLINES AND COMMITMENTS. 6.1. Failure to Complete Development. If Developer fails to achieve, at a minimum, the Level 1 Development by the Completion Deadline, the City shall have the right to terminate this Agreement by providing written notice to Developer without further obligation to Developer hereunder. 6.2. Failure to Pay City Taxes. An event of default shall occur under this Agreement if any City taxes owed on the Development Property by Developer or an Affiliate or arising on account of Developer's or an Affiliate's operations on the Development Property become delinquent and Developer or the Affiliate does not either pay such taxes or properly follow the legal procedures for protest and/or contest of any such taxes. In this event, the City shall notify Developer in writing and Developer shall have thirty (30) calendar days to cure such default. If the default has not been fully cured by such time, the City shall have the right to terminate this Agreement immediately by providing written notice to Developer and shall have all other rights and remedies that may be available to it under the law or in equity. 6.3. Violations of City Code, State or Federal Law. An event of default shall occur under this Agreement if any written citation is issued to Developer or an Affiliate due to the occurrence of a violation of a material provision of the City Code on the Development Property or on or Page 21 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. within any improvements thereon (including, without limitation, any violation of the City's Building or Fire Codes and any other City Code violations related to the environmental condition of the Development Property; the environmental condition other land or waters which is attributable to operations on the Development Property; or to matters concerning the public health, safety or welfare) and such citation is not paid or the recipient of such citation does not properly follow the legal procedures for protest and/or contest of any such citation. An event of default shall occur under this Agreement if the City is notified by a governmental agency or unit with appropriate jurisdiction that Developer or an Affiliate, or any successor in interest thereto; any third party with access to any portion of the Development Property owned or operated by Developer or an Affiliate pursuant to the express or implied permission of Developer or an Affiliate, or any successor in interest thereto; or the City is in violation of any material state or federal law, rule or regulation on account of any portion of the Development Property owned or operated by Developer or an Affiliate, or on account of improvements owned or operated by Developer or an Affiliate or any operations therein on the Development Property (including, without limitation, any violations related to the environmental condition of any portion of the Development Property owned or operated by Developer or an Affiliate; the environmental condition of other land or waters which is attributable to operations on any portions of the Development Property owned or operated by Developer or an Affiliate; or to matters concerning the public health, safety or welfare). Upon the occurrence of any default described by this Section 6.3, the City shall notify Developer in writing and Developer shall have (i) thirty (30) calendar days to cure such default or (ii) if Developer has diligently pursued cure of the default but such default is not reasonably curable within thirty (30) calendar days, then such amount of time as is reasonably necessary to cure such default. If the default has not been fully cured by such time, the City shall have the right to terminate this Agreement immediately by providing written notice to Developer and shall have all other rights and remedies that may be available to under the law or in equity. 6.4. Failure to Meet Construction Cost Spending, Supply and Service Spending and/or Affordable Housing Commitments; Failure to Meet Employment Goal. If Developer fails to meet the Fort Worth Construction Commitment or the M/WBE Construction Commitment, or if Developer fails to meet the Fort Worth Supply and Service Spending Commitment or the M/WBE Supply and Service Spending Commitment in any given year, such event shall not constitute a default hereunder or provide the City with the right to terminate this Agreement, but, rather, shall only cause the amount of the Program Grants that the City is required to pay pursuant to this Agreement to be reduced in accordance with this Agreement. If Developer fails to meet the Affordable Housing Commitment in any given year, such event shall not constitute a default hereunder or provide the City with the right to terminate this Agreement, but, rather, shall only cause the Page 22 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Program Grant payment that would otherwise have been payable in the following Program Year to be forfeited or reduced in accordance with this Agreement. If Developer fails to meet the Employment Goal in any given year, such event shall not constitute a default hereunder and shall not cause the amount of the Program Grant that the City is required to pay in the following Program Year to be reduced. 6.5. Failure to Submit Reports. Without limiting the application of Section 6.6, if Developer fails to submit any report required by and in accordance with Section 4.8, the City's obligation to pay any Program Grants at the time, if any, shall be suspended until Developer has provided all required reports. 6.6. General Breach. Unless stated elsewhere in this Agreement, Developer shall be in default under this Agreement if Developer breaches any term or condition of this Agreement and such breach remains uncured after thirty (30) calendar days following receipt of written notice from the City referencing this Agreement (or, if Developer has diligently and continuously attempted to cure following receipt of such written notice but reasonably requires more than thirty (30) calendar days to cure, then such additional amount of time as is reasonably necessary to effect cure, as determined by both parties mutually and in good faith), the City shall have the right to terminate this Agreement immediately by providing written notice to Developer. 7. INDEPENDENT CONTRACTOR. It is expressly understood and agreed that Developer shall operate as an independent contractor in each and every respect hereunder and not as an agent, representative or employee of the City. Developer shall have the exclusive right to control all details and day-to-day operations relative to the Development Property and any improvements thereon and shall be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, licensees and invitees. Developer acknowledges that the doctrine of respondeat superior will not apply as between the City and Developer, its officers, agents, servants, employees, contractors, subcontractors, licensees, and invitees. Developer further agrees that nothing in this Agreement will be construed as the creation of a partnership or joint enterprise between the City and Developer. Page 23 i;'A �a0:�'J�,U Economic Development Program Agreement between City of Fort Worth and Cypress Equities 1,L.P. 8. INDEMNIFICATION. DEVELOPER, AT NO COST TO THE CITY, AGREES TO DEFEND, INDEMNIFY AND HOLD THE CITY, ITS OFFICERS, A GENTS SERVANTS AND EMPLOYEES, HARMLESS AGAINST ANY AND ALL CLAIMS, LAWSUITS, ACTIONS, COSTS AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO DEVELOPER'S BUSINESS AND ANY RESULTING LOST PROFITS) AND/OR PERSONAL INJURY, INCLUDING DEATH, THAT MAY RELATE TO, ARISE OUT OF OR BE OCCASIONED BY (i) DEVELOPER'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCONDUCT OF DEVELOPER, ITS OFFICERS, AGENTS, ASSOCIATES, EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR SUBCONTRACTORS, RELATED TO THE DEVELOPMENT AND ANY OPERATIONS AND ACTIVITIES THEREON OR OTHERWISE TO THE PERFORMANCE OF THIS AGREEMENT. 9. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: Developer: City of Fort Worth Carlyle/Cypress West 7th, LP Attn: City Manager Attn: Russell Shelton 1000 Throckmorton 15601 Dallas Parkway, Suite 400 Fort Worth,TX 76102 Addison, TX 75002 with copies to: with a copy to: the City Attorney and Dee Finley Economic/Community Development Harris, Finley&Bogle Director at the same address 777 Main Street, Suite 3600 Fort Worth, TX 76102 10. ASSIGNMENT AND SUCCESSORS. Developer may at any time assign, transfer or otherwise convey any of its rights or obligations under this Agreement to an Affiliate that is in good standing to do business in the State of Texas, as determined by the Texas Secretary of State, without the approval Page 24 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. of the City so long as Developer, the Affiliate and the City first execute an agreement under which the Affiliate agrees to assume and be bound by all covenants and obligations of Developer under this Agreement. Otherwise, Developer may not assign, transfer or otherwise convey any of its rights or obligations under this Agreement to any other person or entity without the prior consent of the City Council, which consent shall not be unreasonably withheld, conditioned on (i) the prior approval of the assignee or successor and a finding by the City Council that the proposed assignee or successor is financially capable of meeting the terms and conditions of this Agreement and (ii) prior execution by the proposed assignee or successor of a written agreement with the City under which the proposed assignee or successor agrees to assume and be bound by all covenants and obligations of Developer under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Developer. Any lawful assignee or successor in interest of Developer of all rights under this Agreement shall be deemed "Developer" for all purposes under this Agreement. 11. COMPLIANCE WITH LAWS, ORDINANCES, RULES AND REGULATIONS. This Agreement will be subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended. 12. GOVERNMENTAL POWERS. It is understood that by execution of this Agreement, the City does not waive or surrender any of its governmental powers or immunities. 13. NO WAIVER. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder shall not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. 14. VENUE AND JURISDICTION. 1f any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Page 25 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. Texas —Fort Worth Division. This Agreement shall be construed in accordance with the laws of the State of Texas. 15. SEVERASILITY. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 16. NO THIRD PARTY RIGHTS. The provisions and conditions of this Agreement are solely for the benefit of the City and Developer, and any lawful assign or successor of Developer, and are not intended to create any rights, contractual or otherwise, to any other person or entity. 17. FORCE MAJEURE. It is expressly understood and agreed by the parties to this Agreement that if the performance of any obligations hereunder is delayed by reason of war, civil commotion, acts of God, strike, inclement weather, shortages or unavailability of labor or materials, unreasonable delays by the City (based on the then-current workload of the City department(s) responsible for undertaking the activity in question) in issuing any permits, consents, or certificates of occupancy or conducting any inspections of or with respect to the Development, or other circumstances which are reasonably beyond the control of the party obligated or permitted under the terms of this Agreement to do or perform the same, regardless of whether any such circumstance is similar to any of those enumerated or not, the party so obligated or permitted shall be excused from doing or performing the same during such period of delay, so that the time period applicable to such design or construction requirement shall be extended for a period of time equal to the period such party was delayed. Notwithstanding anything to the contrary herein, it is specifically understood and agreed that Developer's failure to obtain adequate financing to complete the Development by the Completion Deadline shall not be deemed to be an event of force majeure and that this Section 16 shall not operate to extend the Completion Deadline in such an event. 18. INTERPRETATION. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement shall be interpreted fairly and reasonably, and neither more strongly for or against any party,regardless of the actual drafter of this Agreement. Page 26 Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. 19. CAPTIONS. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 20. MUTUAL ASSISTANCE. In the event that the City cannot pay Program Grants as provided by this Agreement on account of a change in applicable law, or in the event that, solely due to a reduction or reductions by operation of Texas law in the City's real property tax rate, Tangible Personal Property tax rate or sales tax rates (and not due to a reduction in such rates unilaterally adopted by the City Council), it appears for the then-foreseeable future that the Program Grants paid hereunder will be materially less than those that would have been payable based on the applicable tax rates that were in effect on the Effective Date, then the City and Developer agree to negotiate in good faith a remedy that preserves the intent of the parties hereunder as much as reasonably possible, with the understanding that any amendment to this Agreement must be approved by the City Council. 21. ENTIRETY OF AGREEMENT. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Developer, and any lawful assign and successor of Developer, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. Notwithstanding anything to the contrary herein, this Agreement shall not be amended unless executed in writing by both parties and approved by the City Council of the City in an open meeting held in accordance with Chapter 551 of the Texas Government Code. 21. COUNTERPARTS. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED as of the last date indicated below: [SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE] Page 27 Economic Development Program Agreement between City of Fort Worth and Cypress Equities 1,L.P. w��l' ;: US � F;j CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY: By: By: 6 Tom Higgins Peter Vaky Acting Assistant City Manager Assistant City Aromey, Date:- M&C: C-222V 07-bd-07 CARLYLE/CYPRESS WEST 7TH,LP, Attested By. a Delaware limited partnership: ` 1 VA �t�ty By: Carlyle/Cypress West 7th GP, LLC, Hercir a Delaware limited liability company, its General Partner By: Carlyle/Cypress Retail I, L.P., a Delaware limited partnership, its Sole Member By: Cypress Equities, LLC, a Texas limited liability company, its General Partner By: Z- Na e: Brian Parro Title: Vice Pr"dent/CFO Date: 7-1 l l 1 J S Page28 V'iU �V�6il '1:5Coil Economic Development Program Agreement between City of Fort Worth and Cypress Equities I,L.P. EXHIBITS "A"—Description and Map Depicting the Development Property "B"—Depiction of Development "C" —Calculation of Affordable Housing Requirements EXHIBIT A to Economic Development Program Agreement Lots 3-5; Lots 16-20, Block 11, Van Zandt#1 Addition, an addition to the City of Fort Worth, Texas. Lots 1-3; Lots 18-20, Block 10, Van Zandt#1 Addition, an addition to the City of Fort Worth, Texas. Lots 11-13, Block 9, Van Zandt#1 Addition, an addition to the City of Fort Worth, Texas. Trs 1A, Josiah MC Lynch Survey A 955, Tarrant County, Texas. Lot 1, Block 1, Brantley Draughon College Addition, an addition to the City of Fort Worth, Texas. Tr lA09, Josiah MC Lynch Survey A 955, Tarrant County, Texas. Lot 1, Block 2, Woolery Addition, an addition to the City of Fort Worth, Texas 221459v1 Exhibit A,Page 1 of 7 STATE OF TEXAS COUNTY OF TARRANT WHEREAS, STATE OF TEXAS COUNTY OF TARRANT WHEREAS, Carlyle/Cypress West 7th is the owner of an that certain tract, parcel or lots of land out of Lots 8 thru 18, Block 1, VAN ZANDT S PARK ADDITION, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat thereof recorded in Volume 204-A, Page 81, Plat Records of Tarrant County, Texas and that portion of an alley vacated by City Ordinance No. 2252 and recorded in Volume 1715, Page 594, Deed of Records, Tarrant County, Texas and described by deeds recorded in Volume 14253, page 204, Volume 10841, Page 2335, Deed Records of Tarrant County, Texas and more particularly described as follows: BEGINNING at a point for corner that is the intersection of the west right-of-way line of Norwood Street with the south right-of-way line of West 7th Street; and having Texas Coordinate System, 1983-2003 datum, North Central Zone of x=2318873.09 and y=6958063.31 feet; THENCE: with the west right-of-way line of Norwood Street, S 0°11'57"W, a distance of 276.19 feet to a point for corner at the intersection of the north right-of-way line of Crockett Street; THENCE: with the north right-of-way line of Crockett Street, N 89°4654" W, a distance of 422.66 feet to a five-eights inch iron rod found in the southeast right-of-way line of University Drive as described by deed recorded in Volume 1276, Page 82, Deed Records of Tarrant County, Texas; and having Texas Coordinate System, 1983-2003 datum, North Central Zone Coordinate of x= 2318449.48 and y= 6957788.73 feet; THENCE: with the southeast right-of-way line of University Drive described by the deed recorded in Volume 1276, Page 82, Deed of Records, Tarrant County, Texas, N 24°21'04" E, a distance of 15 1.10 feet to a one-half inch iron rod found in the center of a vacated easement described by deed recorded in Volume 1715, Page 594, Deed of Records, Tarrant County, Texas and in the south line of a tract described by deed recorded in County Clerks File No. D202316167, Deed of Records, Tarrant County, Texas; THENCE: leaving the said southeast right-of-way of University Drive, and with the center of the vacated alley and the said common line, S 89°48'49"E, a distance of 261.35 feet to a five-eights inch pipe found for corner, THENCE: leaving the said vacated alley centerline, N 0°11'57"E, a distance of 138.15 feet to a point for corner in the south right-of-way line of West 7th Street and the common corners of Lots 7 and 8, Block 1, VAN ZANDT'S PARK ADDITION; THENCE: with the south right-of-way line of West 7th Street, S 89°46 54"E, a distance of 99.48 feet to the place of beginning and containing 1.557 acres of land more or less as surveyed by John nall jr rpls #1970 during the month of May and June 2007. Bearings, Distances and Coordinates shown hereon are grid per the Texas Coordinate System. To obtain surface distances, multiply by 1.00011364 the distances shown. See TNRC5200a. 221459v1 Exhibit A,Page 2 of 7 "�f� .. jv v���� U•. 1 STATE OF TEXAS COUNTY OF TARRANT WHEREAS, Carlyle/Cypress West 7th LLC is the owner of all that certain tract, parcel or lots of land out of Lot 1R Block 2, VAN ZANDTS PARK ADDITION, an addition to the City of Fort Worth, Tarrant County, Texas according to the revised plat thereof recorded in Cabinet B, Slide 2260, Plat Records of Tarrant County, Texas and that portion of an alley vacated by City Ordinance No. 14678 and further described as Tract 9 by deed recorded in County Clerks file No. D207022431, Deed Records of Tarrant County, Texas and more particularly described as follows: BEGINNING at a point for corner that is the intersection of the west right-of-way line of Currie Street with the south right-of-way line of West 7th Street, and having Texas Coordinate System, 1983-2003 datum, North Central Texas Zone of x=2318933.09 and y=6958063.08 feet; THENCE: with the west right-of-way line of Currie Street, S 0 012'22" W, a distance of 276.19 feet to a point for corner at the intersection of the north right-of-way line of Crockett Street; THENCE: with the north right-of-way line of Crockett Street, N 89°4654" W, a distance of 500.31 feet to a point for corner in the east right-of-way line of Norwood Street, and having Texas Coordinate System, 1983-2003 datum, North Central Zone Coordinate of x= 2319432.43 and y=6957784.99 feet,- THENCE: with the east right-of-way line of Norwood Street, N 0°11'57"E, a distance of 276.19 feet to a point for corner in the south right-of-way of West 7th Street; THENCE: with the south right-of-way line of West 7th Street, S 8904654"E, a distance of 500.34 feet to the place of beginning and containing 3.173 acres of land more or less as surveyed by john nall jr rols #1970 during the month of May and June 2007. Bearings, Distances and Coordinates shown hereon are grid per the Texas Coordinate System. To obtain surface distances, multiply by 1.00011364 the distances shown. See TNRC5200a. Areas shown are surface. 221459v1 Exhibit A,Page 3 of 7 STATE OF TEXAS COUNTY OF TARRANT WHEREAS, Carlyle/Cypress West 7th LLC is the owner of all that certain tract, parcel or lots of land out of Lots 1R Block 3, VAN ZANDTS PARK ADDITION, an addition to the City of Fort Worth, Tarrant County, Texas according to the revised plat thereof recorded in Cabinet B, Slide 2259, Plat Records of Tarrant County, Texas and that portion of an alley vacated by City Ordinance No. 14678 and further described by deeds recorded in County Clerks file No. D207022431, and D207066656, Deed Records of Tarrant County, Texas and more particularly described as follows: BEGINNING at a point for corner that is the intersection of the east right-of-way line of Currie Street with the south right-of-way line of West 7th Street;and having Texas Coordinate System, 1983-2003 datum, North Central Texas Zone of x=2319493.42 and y=6958060.95 feet; THENCE: with the east right-of-way line of Currie Street, S 0 012'22"W, a distance of 276.19 feet to a point for corner at the intersection of the north right-of-way line of Crockett Street; THENCE: with the north right-of-way line of Crockett Street, S 89°4654"E, a distance of 500.31 feet to a point for corner in the west right-of-way line of Foch Street; and having Texas Coordinate System, 1983-2003 datum, North Central Zone Coordinate of x= 2319992.97 and y=6957782.85 feet; THENCE: with the west right-of-way line of Foch Street, N 0 013'36"E, a distance of 276.19 feet to a point for corner in the south right-of-way of West 7th Street; THENCE: with the south right-of-way line of West 7th Street, N 89 04654"W, a distance of 500.65 feet to the place of beginning and containing 3.173 acres of land more or less as surveyed by John nall jr rpls #1970 during the month of May and June 2007. Bearings, Distances and Coordinates shown hereon are grid per the Texas Coordinate System. To obtain surface distances, multiply by 1.00011364 the distances shown. See TNRC5200a. Areas shown are surface. 221459v1 Exhibit A,Page 4 of 7 STATE OF TEXAS COUNTY OF TARRANT WHEREAS, Carlyle/Cypress West 7th LLC is the owner of all those certain tract, parcel or lots of land known as Lots 1 thru 7, Block 8, VAN ZANDT'S PARK ADDITION, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat thereof recorded in Volume 204-A, Page 81, Plat Records of Tarrant County, Texas and described by deeds recorded in County Clerks file No. D207022431, Deed Records of Tarrant County, Texas and more particularly described as follows: BEGINNING at a point for corner that is the intersection of the east right-of-way line of Currie Street with the south right-of-way line of Crockett Street; and having Texas Coordinate System, 1983-2003 datum, North Central Texas Zone of x=2319492.21 and y=6957724.77 feet; THENCE: with the south right-of-way line of Crockett Street, S 89 04654"E, a distance of 350.37 feet to a point for corner at the northwest corner of Lot 8, Block 8; THENCE: leaving the south right-of-way line of Crockett Street and with the west line of Lot 8, S 00 13'092" W, a distance of 130.05 feet to a point for corner in the north right-of-way line of an alley, and having Texas Coordinate System, 1983-2003 datum, North Central Texas Zone of x=2319842.08 and y=6957593.38 feet; THENCE: with the north alley right-of-way line, N 89°4654" W, a distance of 350.34 feet to a point for corner in the east line of right-of-way line of Currie Street; THENCE:with the east right-of-way line of Currie Street, N 0 012'22"E, a distance of 130.05 feet to the place of beginning and containing 1.055 acres of land more or less as surveyed by John pall jr rols#1970 during the month of May and June 2007 Bearings, Distances and Coordinates shown hereon are grid per the Texas Coordinate System. See TNRC5200a. Areas shown are surface. 221459vl Exhibit A,Page 5 of 7 STATE OF TEXAS COUNTY OF TARRANT WHEREAS, CarlylelCypress West 7th LLC is the owner of all that certain tract, parcel or lots of land that are Lots 1 thru 10 and Lots 13 thru 20, Block 9, VAN ZANDT'S PARK ADDITION, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat thereof recorded in Volume 204A, Page 81, Plat Records of Tarrant County, Texas and that portion of an alley vacated by City Ordinance No. yyyyy and recorded in Volume xxxx, Page aaa, Deed of Records, Tarrant County, Texas and described as Tracts 1,11,12,13 by deed recorded in County Clerks file No. D207022431, D207052226, and D204241606, Deed Records of Tarrant County, Texas and more particularly described as follows: BEGINNING at a point for corner that is the intersection of the east right-of-way line of Norwood Street with the south right-of-way line of Crockett Street; and having Texas Coordinate System, 1983-2003 datum, North Central Texas Zone of x=2318931.92 and y=6957726.92 feet; THENCE: with the north right-of-way line of Crockett Street, S 89 04654"E, a distance of 500.30 feet to a point for corner in the west right-of-way line of Currie Street; THENCE: with the west right-of-way line of Currie Street, S 0 012'22" W, a distance of 130.05 feet to a point for corner in the north right-of-way of an alley in Block 9; and having Texas Coordinate System, 1983-2003 datum, North Central Zone Coordinate of x=2319431.56 and y= 6957578.87 feet; THENCE. with the said north alley right-of-way line, N89 04654" W, a distance of 100.06 feet to a point for corner, at the common corners of Lots 8 and 9, Block 9; THENCE: leaving the said alley right-of-way line, S 0 012'22" W, a distance of 146.05 feet to a point for corner at the common corners of Lots 12 and 13, Block 9 and in the north right-of-way line of Morton Street; THENCE: with the north right-of-way line of Morton Street, N 89°4652" W, a distance of 400.22 feet to the intersection of the east line of Norwood Street, THENCE:with the said east right-of-way line of Norwood Street, N 0°11'57"E, a distance of 276.10 feet to the place of beginning and containing 2.836 acres of land more or less as surveyed by john nail jr rols #1970 during the month of May and June 2007. Bearings, Distances and Coordinates shown hereon are grid per the Texas Coordinate System. To obtain surface distances, multiply by 1.00011364 the distances shown. See TNRC5200a. Areas shown are surface. 221459v1 Exhibit A,Page 6 of 7 '7 E S FT i �H`N•;��J ��J -A iA fCA 3A. 1 0 3 + _ :rn _ _ _ 98 C i '0 3-3 7 _ ,1C 3 8 ,s' iAi j I I_ J 'dv j 'Vv JPr_f1 H Ile z -a Sd 9A q C.RCC<E- -- 4 [ 114 MIR N - ^---- - - 8 17 i? 15 14 .0 12 1 M Z`20,1S 18 17 '.E if 13 1_2 1P 1.7 tE 11 a 13 T11 fa 1 _ Ls A 2 4 5 6A - P 9 i 2 3 4 E E S 10 - _ _ - drNk 11?3R 1P - tE 1f 1' - - -c---- - >n 17 1"e �4 iC 1'. 1C t !20 19 i8 .i 16 15 i_ 13 1? C; j a' Der+V C 're: '1 Ca^t[-^^ti?^ bv e Ca;I l ,'Cy Bess VV 1 "y 1 "v p West Tr, - 1L, 1.57� A; j fig: •J `� iK -.C_ AIC i4. 2 A` EXHIBIT A, Page 7 of 7 r 11Y.cht2MMl _ � , � � Flo :x..;. t Exhibit"B" Depiction of Development L----_---- —_.-----------_.------------------ � LTua„ ,au.ao rT ! s Lp. mo yr CT am AW cn9 3 Lcr a IT E.FLL-. rn ca •, o 74 a I 06D LU X v 19 4 all* , Le fill / y _srr'rr:ai sir 1/oe xae; fins�Ii& lid �� +•.yy�1•ryCI'•illt 'low lop +ry r KEA ol Aq lb ap t 1 rj r � ��:� �"�"�rl, ate,� i/,�t � #� � �.•�t.� ,.. : ' ... A i 1• Exhibit "C" Calculation of Affordable Housing Requirements 2007 HOME PROGRAM RENT LIMITS AND 2007 INCOME LIMITS FOR THE FORT WORTH-ARLINGTON,TX HUD METRO FMR AREA Calculation of Affordable Housing Requirements 1 PERSON 2 PERSON 3 PERSON 4 PERSON 5 PERSON 6 PERSON 7 PERSON 8 PERSON Fort Worth-Arlingotn,TX HUD Metro FMR 30%LIMITS $13.950 $15,950 $17,950 $19,950 $21,550 $23,150 $24,750 $26,350 VERY LOW INCOME $23,300 $26,600 $29,950 $33,250 $35,900 $38,550 $41,250 $43,900 60%LIMITS $27,960 $31,920 $35,940 $39,900 $43,080 $46,260 $49,500 $52,680 LOW INCOME $37 250 $42 550 $47,900 $53 200 $57 450 $61 700 $65 950 $70 200 Examples: 1) 80% of Median Household Income (LOW INCOME) • 1 person O Income Limit-$35,500 O Rent Limit- ■ $35,500 * .3= $10,650 Total Yearly Maximum ■ $10,650/12 = $887.50 Maximum Monthly Rent 2) 60% of Median Household Income (60% LIMITS) • 1 person o Income Limit- $26,640 o Rent Limit- ■ $26,640 * .3 = $7,992 Total Yearly Maximum ■ $7,992/12 = $666 Maximum Monthly Rent 1 U.S.Department of HUD 03/2007,Fort Worth- Arlington,TX HUD Metro FMR Area EXHIBIT "C" " � • "i'l ' �C `�'iL' i ,- c FY 2007 Income Limits Documentation System--Summary for Fort Worth-Arlington,T... Page 1 of 2 FY 2007 Income Limits Documentation System FY 2007 Income Limits Summary Fort Worth Arlington, TX HUD Metro FMR Area FY 2007 FY 2007 Income Median Income 1 2 3 4 5 6 Limit Incczmg Limit Person Person Person Person Person Person Area Category Very Lowy 50 O $22,200 $25,350 $28,550 $31,700 $34,250 $36,750 Income Limiias Fort Extremel}t Worth LOW - Arlington, $60 600 (100 TX HUD $13,300 $15,200 $17,100 $19,000 $20,500 $22,050 I G� orrte Metro i its FMR Area l.� $35,500 $40,550 $45,650 $50,700 $54,750 $58,800 Income Limits The Fort Worth-Arlington,TX HUD Metro FMR Area contains the following areas: Johnson County, TX; Parker County,TX;and Tarrant County,TX. Income Limit areas are based on FY 2007 Fair Market Rent(FMR) areas. For a detailed account of how this area is derived please see our associated FY 2007 Fair Market Rent documentation system. Other HUD Metro FMR Areas in the Same MSA Select another FY 2007 HMFA Income Limit area that is a part of the Dallas-Fort Worth- Arlington,TX MSA Dallas,TX HUD Metro FMR Area . Sele t>FiM1=�`":lneome�Li"'ttsAre� http://www.huduser.org/datasets/il/il2007/2007summary.odb?inputname=METRO 19100M... 1/11/2008 M W O N d ro a I (1C MH N�I••1 P V co M W mMm O\0 ID OIw MM M "1 10 P P r P P 1 W Q'OI 0 POl nr m0r 100 w 1O0 OM r OM 010 ID mw Ulr O1 U)r 1 w O M m m r W O r W H P 0 H P rl M P 14 M ON 01 m T H r W N r W f 1O .+ H .i 1t r•I H H I-;H H H H H H 1 I I H H 10.•1 It O\P M m QI P N N P N P r V)P f N N N m m T P w T Q� i co r N ON r N W ID O H M O 14 M 0 U) N O 0% o ff P m H 1 rm rlr drn W W o1b W O M P OM O N MON W W W m0 W m .•+1O W ( Jl rl H H .-1 .y r1 H H f I 1 1 I a OD 4 Ow ri Nt r U)In M10 MM to mUl n w W HH HMM u7 U) W 0 -In Pm U1 NIn MNN %001 co ko . m M H M P P P NH N U) m b W O 10 W 10- W ID r OI H N 01 H 01 H H OI r r w O ID r 01 10 r^ m P H H H H H d H Z W a a 1O.•+ PID.4 O P N OP P(h 01PO PO O Pr r r r W In C.P NO w W N W In N W ID d\ H 10 dI ID N n o m N H H N M ID ID w 1)N ID Ol P 10 T 10!� m tO r n 10 W n IO W O 000 m O 0-0 w ID 10 r 01 U)1D m In 1D P4 n. m a Cl)M In N M n r r 0co mOJ W wN MIn N M1O 10 ID 10 W m n r ran W 0 m cT m ON P OJ w N ul W O P 0) 01 P in I•d C P H O P P P M O W W 0 co 0 V7 1D IO in 1O P U1 In P ID r r r r m r r r r M Ul In U)1D W •0'U'I Yl P 10 N r O O N PG HO CHw Q'm m P1n Mm W MH PN n PM P P P Cl)N PN NP U1 1 co N w 14 In IO O W 1000 N In M N 01 01 O O O1 Ul h m U)M r O 01 000 1 P Ul Vf P IA P P P P n ID 10 b w r o ID 10 U1 r P P Q'U)lO P P dI P In 1 � I 1 I 1 1 1 u (v U71•401 r('� r r0 Cl)H HNm Mtn U)NH In) )r-100%N r 0 10 r0 I z NN n UN 'n r rr W In n nM In O In tr) NU1 v v10 r ID lOr r 1 Z a 11'1 Vl P U1 M M M M P N V7 Ul IA r In In In U)r P P P P 10 M 1 W i H t U t H 1 w 1 w 1 W F >. H A F A C. >+ H T E T [+HH FI-iH FH.i E+H ri F H.-t E HH >-1£ ♦; H T p H£ C H`a' C. H £ F H £ C £HO £ISO £HO FJH0 £HO -0 H W W C Z W f:m Rgz W C z .7 Cz F 014 HF H O[[��HF F ONFF H OfdFH H 0T[(1EF F O W HE E+..7•�•1 a H H H z•11�i N H F Z-1 ai H H F 7 TI a H H H z+1 R:N 1� F z•1i w H H Z W N £$ Z W 11 £ L u £23 f�N $ 'E W N }^. Z Z W u S,'f. W a 10 H H H w Ri ro C. H H W m 10 H H H a Itl E H H a Ili H N H (a�a a E H H 14 W C4 W W a W el.a M'W E Wy,W is PPP"' W W W C £y Wy..�� 4: E W W W W 8 OaFH W £ OaEFOC.EH m W £ OD�'IHF W£ OaEH £ OCEE S £o'�+ �d z(z £o4+a z(zW� Eo 44 zw�z 4S w4zz £o'1•i�(p!z((JJz 0%44ZZ S.W H aOL xxH£ OPG IXxty£ G4iw eso�, Hxaa SW Ea N£ 4iPG OY.xIC1zaa a x a s a c 0 4 1 l op Ae Z [7 N H 10 ao ^L a:U 4 H.0 eN ^ 0 4 H eP 0. ',3. 0 4 H pe ap {oG 0 N O•d O In 0 o N O.4 O U1 pp H O Q O n w oo H D Q'O U) p H O W O N H p 1.�O N C.N �4 oa W C In 10 a�x w w U "CC)10 3 ,w win o O It S w W 1n 1p ro W x w w U)10 m w w V)10 4 et C4 a N H N 4 N 4 O o O pp� w W �R07 S x O C S. "I O O O H F UYi of x E C ¢ •.1 T 0 4 S4 E H H y 4 x a% .C, U F C F d W U 4 7 0 H 61 ro Q 0 U a0i W DO, W ro to O) rt 11 q .-i 7 V) U eC 0 1.0. 3 RH1 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 7/10/2007 DATE: Tuesday, July 10, 2007 LOG NAME: 17RVRPLZAXAGR REFERENCE NO.: C-22239 SUBJECT: Authorize Execution of Economic Development Program Agreement with Trademark Property Group, Related to a Mixed-Use Project to be Constructed at the Intersection of South University Drive and River Run RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to execute an Economic Development Program Agreement with Trademark Property Company (subject to subsequent, non-material changes agreed to by the parties) related to a mixed-use project to be constructed at South University Drive and River Run; and 2. Find that the terms and conditions of the Agreement, as outlined below and in the Agreement, constitute a custom-designed economic development program, as recommended by the 2007 Comprehensive Plan and authorized by Chapter 380 of the Texas Local Government Code. DISCUSSION: Under the proposed Economic Development Program Agreement, Trademark Property Group (Developer), has committed to construct a mixed-use development consisting of for sale residential units, office space, retail space, and a hotel on property near the intersection of South University Drive and River Run. In exchange for achieving the specified investment levels, the Developer will be eligible to receive up to 15 annual economic development grants, equal to 75 percent of incremental real and business personal property taxes paid to the City; and 75 percent of the City's one percent incremental sales tax. The amounts of the grants will be tied to the investment level achieved by the Developer. The minimum investment and maximum incentive schedule are summarized as follows: Investing between $50,000,000 and $63,500,000 will result in total possible maximum grants of$6,691,549. Investing between $63,500,001 and $81,500,000 will result in total possible maximum grants of$9,270,837. Investing in excess of$81,500,001 will result in total possible maximum grants of$12,133,062. All investment criteria are exclusive of land costs, but include hard and soft construction costs. Failure to meet a minimum investment of $50,000,000 is a condition of default and the agreement will be terminated. The Developer will not be eligible to receive the proposed grants until fagade and site plan improvements are approved by the Central City Revitalization and Economic Development (CCRED) Committee. CCRED approval of the proposed fagade and site plan improvements must be obtained prior to any work on the project. If the Developer meets the minimum investment commitments for the project, the Developer will be entitled http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/18/2008 Page 2 of 2 to receive 50 percent of the possible maximum grants. To receive the maximum incentives, however, the Developer must also spend 30 percent of hard construction costs with Fort Worth contractors, and 25 percent of the hard construction costs with certified Fort Worth M/WBE contractors. In addition, the Developer must spend at least $50,000 on annual discretionary service and supply contracts with Fort Worth contractors and at least $35,000 with certified Fort Worth M/WBE contractors. If the Developer fails to meet these additional commitments, the grants will be reduced by the following percentages from the maximum according to the following schedule: in year one of the grant term, 30 percent for failure to meet the requirement for spending on hard construction costs with Fort Worth companies; in year one of the grant term, 20 percent for failure to meet the requirement for spending on hard construction costs with Fort Worth M/WBE companies; starting in year two of the agreement, 15 percent for failure to meet the requirement for annual discretionary service and supply contracts with Fort Worth companies; and starting in year two of the grant term 10 percent for failure to meet the requirement for annual discretionary service and supply contracts with Fort Worth M/WBE companies. The incentive for construction and service and supply components for Fort Worth and Fort Worth M/WBE will be reduced proportionally based on the amount by which these commitments are not met. The Developer will not be eligible for incentive funding this fiscal year. They are estimated to be eligible for the incentive in 2011 due to the best information we have on construction plans. At that time, funding will be appropriated. The River Plaza Development is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the terms of this agreement may provide incentives to Trademark Property Group not to exceed the specified maximums. The incentives are calculated to be less than the additional revenue received from incremental taxes paid to the City. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Dale Fisseler (6266) Originating Department Head: Tom Higgins (6192) Additional Information Contact: Jay Chapa (5804)Mark Folden (8634) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/18/2008