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HomeMy WebLinkAboutContract 42127 CITY SECRETARY CONTRACT NO. t— � AGREEMENT CONCERNING OPERATION OF SOUTH DENTON COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 1 STATE OF TEXAS § COUNTY OF DENTON § This Agreement Concerning Operation of South Denton County Water Control and Improvement District No. 1 (this "A�re� e2ment") is entered into by the City of Fort Worth, Texas, a home-rule municipal corporation situated in Parker, Tarrant, Denton, and Wise Counties, Texas (the "City"), and South Denton County Water Control and Improvement District No. 1, a water control and improvement district created pursuant to Article XVI, Section 59, of the Texas Constitution and Chapters 49 and 51 of the Texas Water Code (the "District"), effective January 25, 2011 (the "Effective Date"). ARTICLE I RECITALS A. Brookfield Acquisitions, L.P., a Texas limited partnership (the "Owner"), has represented to the City that it is the owner of approximately 231.579 acres located entirely in the City's extraterritorial jurisdiction ("ETJ") in Denton County, Texas, as shown in Exhibit A and described in Exhibit B attached to this Agreement (the "Pr—operty"). B. On January 4, 2005, the City Council of the City of Fort Worth (the "City Council") approved Resolution No. 3157-01-2005 (the "Consent Resolution") consenting to creation of the District encompassing the Property. C. The Consent Resolution provided that the City shall have the right to review and approve the District's bonds and notes prior to issuance and to place restrictions on the terms and provisions of the bonds and notes issued by the District and conditions on the sale of bonds and notes by the District to the extent such restrictions and conditions do not generally render the District's bonds and notes unmarketable. D. The Consent Resolution limited the purposes for which the District may issue bonds to expenditures relating to the provision of water, wastewater and drainage services. E. The Texas Commission on Environmental Quality ("TCEQ") approved creation of the District by order issued April 19, 2007. 1'. The Board of Directors of the District conducted an election to confirm creation of the District on November 6, 2007, and canvassed the results of the election on November 15, 2007. G. The City wishes to expressly define herein the restrictions and conditions on the District's bonds pursuant to the Consent Resolution, to expand the ( its s coy - Agreement Concerning Operation - Brookfield Page i OFFICIAL RECORD — � ! �' �� : ^d CITY SECRETARY FT. WORTH, TX issuance of bonds by the District to include the Road Projects, and to consent to conversion of the District to a fresh water supply district operating under Chapter 53, Texas Water Code, as amended. H. The Property is subject to that certain Brookfield Water and Wastewater Utili d/b/a Aqua Texas, Inc., ("Aqua Texas") Owner, the City and the District (City ety Service Agreement (the "Utility Agreement") between Aqua Utilities, Inc., a Texas corporation Contract No. , M & C C-24720). cretary I. Pursuant to the Utility Agreement, Aqua Texas, Owner, the City, and the District will execute that certain Buy-Out Option Contract, a copy of which is attached to the Utilit Agreement as Exhibit C (the "Buy-Out Contract"). y J. The Property is subject to that certain Development Agreement between the City and Owner pursuant to Section 212.172 of the Local Government Code (City Secretary Contract No. , M & C C-24720). NOW THEREFORE, for and in consideration of the mutual agreements, covenants, and conditions hereinafter set forth, the Parties contract and agree as follows: ARTICLE II DEFINITIONS "Agreement" means this Agreement Concerning Operation of South Denton County Water Control and Improvement District No. 1. "Aqui"means Aqua Utilities, Inc., a Texas corporation, d/b/a Aqua Texas, Inc. "Attorney General" means the Attorney General of the State of Texas. "Board"means the Board of Directors of the District. "Bond" means (a) any instrument, including a bond, note, certificate of participation, or other instrument evidencing a proportionate interest in payments, due to be paid by the District, or (b) any other type of obligation that (1) is issued or incurred by the District under the District's borrowing power, without regard to whether it is subject to annual appropriation, and (2) is represented by an instrument issued in bearer or registered form or is not represented by an instrument but the transfer of which is registered on books maintained for that purpose by or on behalf of the District. The term shall include obligations issued to refund outstanding Bonds, but shall not include reimbursement agreements entered into between the District and a developer of the Property or bond anticipation notes. "Bond Limit Amount" means the maximum amount of Bonds, excluding refunding Bonds, that may be issued by the District pursuant to Section 5.04 of this Agreement. "Buy-Out Contract" means that certain Buy-Out Option Contract to be executed by the District, the Owner, the City and Aqua Texas, and wherein the District, Owner and Aqua Texas agree to A-reement Concerning Operation - Brooktiew Page 2 9730 4 convey to the City certain retail water and wastewater facilities, a copy of which is attached to the Utility Agreement as Exhibit C. "CCN" means a certificate of convenience and necessity or similar permit issued by the TCEQ I: authorizing a specified entity to be the retail water or sewer service provider in a specified area. "CFAPolicy" means the "Policy for the Installation of Community Facilities" as amended in March 2001 (M & G-13181), in effect on the Effective Date, including any amendments thereto that are in effect on the Effective Date. "City" means the City of Fort Worth, Texas, a home rule municipality located in Parker, Tarrant, Wise, and Denton Counties. "City Attorney" means the City Attorney of the City. "City Code" means the Code of the City of Fort Worth. "City Council" means the City Council of the City. "City Manager" means the City Manager of the City. "City Review Fees" means: (a) fees and charges applicable to the City's preliminary and final plat review and approval process according to the fee schedule adopted by the City Council and in effect on the date of submittal of each plat application; and (b) fees and charges applicable to the review of plans relating to construction of Infrastructure according to the fee schedule adopted by the City Council and in effect on the date of submittal of such plans. "City Secretary" means the City Secretary of the City. "Consent Resolution" means Resolution No. 3157-01-2005 adopted by the City Council on January 4, 2005, consenting to creation of the District. "Contractor" means a person or entity that constructs, alters or repairs Infrastructure required to serve the Property, whether located within or outside the Property. "Development Agreement" means the Development Agreement for the Property between the City and Owner (City Secretary Contract No. , M & C C-24720). "Development Director" means the Director of the City's Planning and Development Department. "District" means South Denton County Water Control and Improvement District No. I encompassing the Property, and any district resulting from the conversion of such District in accordance with this Agreement. "District Confirmation Date"means November 15, 2007. "Effective Date" means January 25, 2011. A-reement Concerning Operation - Brookfield Page 3 97304 1. {K 3 "ETJ" means the extraterritorial jurisdiction of a city as defined by the Local Government Code, as amended, with the City's ETJ being an unincorporated area presently extending five miles from the City's corporate limits, excluding other incorporated municipalities and their respective ETJs. "Filing Date" means July 23, 2007, the date on which the application for approval of preliminary plat PP-07-024 for the Property (which was approved by the City's Plan Commission on September 26, 2007) was submitted to the City. If PP-07-024 expires, "Filing Date" shall be deemed to be the Effective Date. For purposes of this section, "Project" means the development of the Property in accordance with the Development Agreement. If Owner fails to make progress (as defined in Section 245.005(c) of the Local Government Code) toward completion of the Project by January 25, 2016, the "Filing Date" shall be deemed to be the date the first permit application relating to the Project is filed with the City after January 25, 2016. "Finance Director" means the Director of the City's Finance Department. "Governing Regulations" means all City ordinances, regulations, policies, manuals and other requirements relating to Infrastructure, including the design, location, construction, payment of fees, operation and maintenance thereof, that were applicable within the City's corporate limits on the Filing Date. Further, "Governing Regulations" includes all amendments to the foregoing requirements and all new requirements relating to Infrastructure that are adopted or approved after the Filing Date, except any amendments from which the Development is exempt pursuant to Chapter 245 of the Local Government Code. "Infrastructure" means all water, wastewater, drainage, roadway and other infrastructure improvements installed or constructed to serve the Property, whether located within or outside the Property. When "Infrastructure" is expressly identified as water Infrastructure or wastewater Infrastructure, "Infrastructure" is limited to the specified type. "Infrastructure Inspection Fees" means the fees applicable to the inspection and testing of Infrastructure according to the fee schedule adopted by the City Council and in effect on the date of the inspection. "Local Government Code" means the Texas Local Government Code, as amended. "Notice" means notice as defined in Section 13.01 of this Agreement. "Owner" means Brookfield Acquisitions, L.P., a Texas limited partnership, and its successors. Party" means, individually, the City or the District. "Propertx" means that certain 231.579-acre tract located in Denton County, Texas, as shown in Exhibit A and described in Exhibit B. "Road Projects" means construction, acquisition, improvement, maintenance and operation of macadamized, graveled or paved roads and turnpikes and improvements in aid of such roads and turnpikes. Agreement Concerning Operation - Brookfield Page 4 9730 4 "Strategic Partnership Agreement" means the Strategic Partnership Agreement attached as Exhibit C to this Agreement which may be executed by the City and the District providing for the limited purpose annexation of certain portions of the Property designated for commercial use for the sole purpose of imposing a sales and use tax. "TCEQ" means the Texas Commission on Environmental Quality or its successor state agency. "Utility Agreement" means that certain Brookfield Water and Wastewater Utility Service Agreement between the District, Aqua Texas, Owner, and the City executed (City Secretary Contract No. , M & C C-24720). "Water Code"means the Texas Water Code, as amended. "Water Director"means the Director of the City's Water Department. ARTICLE III CITY CONSENTS In accordance with the terms of this Agreement, the City consents to: (a) conversion of the District to a fresh water supply district operating under Chapter 53, Texas Water Code, as amended; (b) issuance of Bonds by the District for Road Projects; and (c) any other actions taken by the District as required for the District to obtain the authority to issue bonds for the purposes set forth in Section 5.02. ARTICLE IV STRATEGIC PARTNERSHIP AGREEMENT The City Council and the Board may approve a Strategic Partnership Agreement authorizing the City to annex commercial property within the District for the limited purpose of assessing and collecting sales tax in substantially the form attached hereto as Exhibit C, after notice and hearing in accordance with Section 43.0751 of the Local Government Code. ARTICLE V ISSUANCE OF BONDS AND CONSENT TO ROAD PROJECTS 5.01 Issuance of Bonds. The District may issue Bonds only as permitted by law and this Agreement. This Agreement shall supersede the Consent Resolution with regard to restrictions on the terms and provisions of the Bonds issued by the District, conditions on the sale of Bonds, and the purposes for which the District may issue Bonds. Except as authorized by this Agreement, the District shall not issue Bonds without prior approval of the City Council. 5.02 Purposes. The purposes for which the District may issue Bonds shall be restricted to the following: (a) Purchase, construction, acquisition, repair, extension and improvement of land, easements, works, improvements, facilities, plants, equipment, and appliances necessary to: A-Ueement Concerning Operation - Brookfield Pa-e 5 9730 4 (i) Provide a water supply for the District for municipal, domestic, and commercial uses; (ii) Collect, transport, process, dispose of, and control all domestic, commercial, industrial or communal wastes from the District, whether in fluid, solid, or composite state; (iii) Gather, conduct, divert, and control local storm water or other local harmful excesses of water in the District; and (b) Establishment, operation, maintenance and construction of facilities for the provision of police, fire-fighting and other emergency services within the District; and (c) Purchase, construction, acquisition, repair, extension, and improvement of land, easements, works, improvements, facilities, plants, equipment, and appliances as shall be consistent with the purposes for which the District is organized; and (d) Construction, acquisition, improvement, maintenance and operation of macadamized, graveled or paved roads and turnpikes and improvements in aid of such roads and turnpikes; and (e) Payment of organization expenses, initial operation expenses, cost of issuance, interest during construction and capitalized interest; and (f) Refunding of any outstanding Bonds of the District for debt service savings; provided, however, that any such refunding Bonds otherwise satisfy the requirements of this Agreement. 5.03 Limitations on Bonds. The District acknowledges that but for this Agreement, pursuant to Section 54.016 of the Water Code, the City's consent to inclusion of the Property within the District could include restrictions on the purposes for which the District may issue Bonds and that those restrictions could entirely prohibit issuance of Bonds for roads. 5.04 Road Projects. Notwithstanding the restrictions otherwise permitted by Section 54.016 of the Water Code (as referenced in Section 5.03) this Agreement hereby authorizes and further consents to the District undertaking the Road Projects within the District and to the issuance by the District of Bonds for the Road Projects. In consideration for the City's consent to the Road Projects, the District agrees that the total amount of Bonds issued by the District for all purposes (excluding refunding Bonds) shall not exceed $49,000,000 (the "Bond Limit Amount"), unless specifically approved by the City Council. The District acknowledges that the Bond Limit Amount is sufficient to accomplish the purposes of the District and that the District has voluntarily agreed to the Bond Limit Amount in consideration for the City's consent to the issuance of Bonds for the Road Projects. District facilities, if any, the cost of which exceeds the Bond Limit Amount will be dedicated to the District without reimbursement unless otherwise approved by the City Council. Agreement Concerning Operation - Brookfield Pa,,e 6 97304 I 5.05 Bond Requirements. The District shall obtain all necessary authorizations for Bonds issued to finance the acquisition or construction of facilities and infrastructure for the benefit of the District in accordance with this Agreement and laws applicable to the District. All Bonds issued by the District shall comply with the following requirements: (a) Maximum maturity of 25 years for any one series of Bonds; and (b) Interest rate that does not exceed two percent (2%) above the highest average interest rate reported by the Daily Bond Buyer in its weekly "20 Bond Index" during the 30-day period immediately preceding the date that the official notice of the sale of such Bonds is given; and (c) The Bonds shall expressly provide that the District shall reserve the right to redeem Bonds at any time beginning not later than the tenth (10th) anniversary of the date of issuance, without premium. No variable rate Bonds shall be issued by the District without City Council approval; and (d) Any refunding Bonds of the District must provide for a minimum of three percent (3%) present value savings and, further, must provide that: (i) the latest maturity of the refunding Bonds may not extend beyond the latest maturity of the refunded Bonds unless approved by the City Council; and (ii) the refunding Bonds shall be structured with a call date not to exceed seven (7) years from the date of issuance of the refunding Bonds, unless otherwise approved by the City; and (e) No Bonds shall be issued having an issuance date more than fifteen (15) years after the Effective Date without the City's written approval; and (f) No Bonds shall be issued unless the principal amount of outstanding Bonds, together with the amount of the proposed Bonds, would be equal to or less than fifteen percent (15%) of either the certified taxable assessed valuation or most-current certified estimate of taxable assessed valuation within the District according to the Denton Central Appraisal District or its successor. 5.06 Certifications. With respect to any matter required by this Article V to be certified in writing, this Agreement also requires, and the District hereby warrants, that every statement in any certification shall be true and correct in all material respects and that the person signing the certification has been given the requisite authority to do so on behalf'of the District. 5.07 Economic Feasibility. Before submission of an application for approval of issuance of Bonds to the TCEQ (as and if applicable) or the Attorney General, the District's financial advisor shall certify in writing to the City Secretary, City Manager, and Finance Director that the Bonds are being prepared for issuance within the then-current economic feasibility rules established by the TCEQ for districts issuing bonds for water, sewer, drainage or road facilities in Denton County. agreement Concerning,) Operation - Brookfield fla-e 7 9730 4 i 5.08 Notice of Bond Issues. At least thirty (30) days before submission of an application for approval of issuance of Bonds to the TCEQ (as and if applicable) or the Attorney General, the District shall deliver to the City Secretary, City Manager, and Finance Director the certification required by Section 5.07 and Notice containing: a the amount of Bonds proposed for issuance; (b) a description of the ( ) being p projects to be funded and/or the Bonds to be refunded by such Bonds; and (c) the proposed debt service and total District tax rate after issuance of the Bonds. If the District is not required to obtain TCEQ approval of the issuance of the Bonds, the District shall deliver such certification and Notice to the City Secretary, City Manager, and Finance Director at least thirty (30) days prior to issuance of Bonds, except refunding Bonds, by the District. 5.09 Compliance with Agreements. At least thirty (30) days before submission of an application for approval of issuance of Bonds to the TCEQ (as and if applicable) or the Attorney General, the District shall certify in writing to the City Secretary, City Manager, and Finance Director that the District is not in breach of any material provision of the Consent Resolution, this Agreement, or the Strategic Partnership Agreement. Material provisions include, but are not limited to, Sections 5.01, 5.02, 5.04, 5.05, 5.06 and 6.01 and Articles VII and IX of this Agreement; but exclude Section 6.12 of this Agreement which is not a material provision of this Agreement for purposes of this Section 5.09. 5.10 Official Statements. Within thirty (30) days after the District closes the sale of each series of Bonds, the District shall deliver to the City Secretary, City Manager, and Finance Director a copy of the final official statement for such series of Bonds. If the City reasonably requests additional information regarding such issuance of the Bonds, the District shall promptly provide such information at no cost to the City. 5.11 Reimbursement Agreements. (a) The District shall not enter into agreements with landowners or developers for reimbursement of costs incurred in connection with the District with a total reimbursement amount exceeding the Bond Limit Amount. (b) All agreements entered into by the District with landowners or developers for reimbursement of costs incurred in connection with the District shall provide that: (i) the District will not reimburse the landowner or developer for costs not evidenced by the issuance of Bonds within fifteen (15) years after the Effective Date; and (ii) the landowner or developer waives all claims against the City for reimbursement of obligations not evidenced by the issuance of Bonds within fifteen (15) years after the Eff-ective Date. (c) The District agrees that any developer reimbursement agreements entered into by the District in violation of this section shall be void. (d) To the extent permitted by law, the District hereby indemnifies the City against any claims pursuant to reimbursement agreements executed in violation of this section. noreement Concernin, Operation - Brookfield Pa-e 8 9730 4 (e) The District shall submit copies of such reimbursement agreements to the City within 60 days after such agreements are fully executed. ARTICLE VI CONSTRUCTION, OPERATION, MAINTENANCE AND INSPECTION OF DISTRICT FACILITIES 6.01 Infrastructure Standards. All Infrastructure shall be designed and constructed in compliance with: (a) the Governing Regulations; (b) the rules and regulations, if any, of the District; and (c) the rules and regulations of TCEQ. In the event of any conflict between the Governing Regulations and the rules and regulations of the District, the Governing Regulations shall control unless otherwise agreed in writing by the Development Director. In the event of any conflict between the Utility Agreement and this Agreement, the Utility Agreement shall control. 6.02 Additional Construction Standards for Water Utility Infrastructure. The water utility Infrastructure serving the Property must be constructed using the same type, or a compatible type, of meters, valves, meter boxes and service lines used by the City for its municipal water system; provided, however, that automated meter reading ("AMR")-compatible may be used. 6.03 Plan Review; Payment of Fees; and Pre-Construction Conference. Construction of Infrastructure shall not commence until (i) final construction plans and specifications have been reviewed and accepted by the City for compliance with the Governing Regulations; (it a pre-construction conference has been held by the Contractor, the District's engineerand designated representatives of the City; and (iii) the applicable City Review Fees have been paid. At such pre-construction conference, the City shall designate City employees to serve as the project manager and the project inspector (the "City Inspector"). The City's review of construction plans and specifications for compliance with the Governing Regulations and notification of the District of any deficiencies in such construction plans and specifications shall not be unreasonably delayed. 6.04 Community Facilities Agreements. Construction of Infrastructure shall not commence until Owner has executed a Communities Facilities Agreement if required by the CFA Policy. In the event of a conflict between this Agreement and the CFA Policy, this Agreement will prevail. 6.05 Inspections by Third Party Inspectors. Except as otherwise provided in this Article VI, inspectors retained and paid for by the District (or by Owner on behalf of the District) and approved by the City shall perform all inspections and testing of the construction of Infrastructure for compliance with this Article VI. The District or Owner, as applicable, shall submit the names, addresses and phone numbers of such inspectors as part of the submittal of final construction plans and specifications. Construction of Infrastructure shall not commence until such inspectors have been approved by the City which approval shall not be unreasonably withheld or delayed. The District shall require all inspectors it retains to provide copies of all inspection and testing reports to the City Inspector within five (5) business days of the date of the inspection. Agreement Concerning Operation - Brookfield Page 9 9730 4 6.06 Termination of Third Party Inspectors. The City has the right to terminate any third party inspector retained by the District or Owner pursuant to Section 6.05 if the inspector: (i) fails to properly perform inspections and testing to ensure construction in compliance with this Article VI; or (ii) fails to timely provide copies of inspection and testing reports to the City Inspector. Upon termination of any third party inspector, the City, at its option, may: (i) allow the use of another approved third party inspector, or (ii) perform all necessary inspections and testing. Should the City elect to perform inspections and testing pursuant to this Section 6.06, the City shall perform such inspections and testing for compliance with this Article VI in a timely manner and the District shall pay the City an inspection fee to reimburse the City for its reasonable and necessary costs of performing the Infrastructure inspection. 6.07 Inspection by City. The City shall have the right to,charge an Infrastructure inspection fee for City-conducted inspections and testing only for inspections and testing performed by the City pursuant to Section 6.06. In such case, the City may charge the City's prevailing Infrastructure inspection fee applicable to inspections outside the City's corporate limits. Notwithstanding the foregoing limitation on the City's right to charge an Infrastructure inspection fee, the City has the right, but not the obligation, to inspect and test the Infrastructure at any time and to participate in a final inspection of all Infrastructure. The Contractor shall notify the City Inspector when Infrastructure is ready for final inspection. If the City Inspector concurs that construction of the Infrastructure is substantially complete, the City Inspector will schedule a final inspection by the City within 30 days. Upon such final inspection and correction of any punch list items, written certification by the City Inspector that Infrastructure has been constructed in compliance with Governing Regulations shall constitute compliance with the inspection requirements of this Article VI. 6.08 Access by City Employees. Upon prior Notice by the City, any duly authorized employee of the City bearing proper credentials and identification shall be granted access to any property of the District within the Property as the City may reasonably determine necessary for the purpose of inspection and testing of Infrastructure. 6.09 Wastewater Service. Wastewater service shall be provided to the Property in accordance with the Utility Agreement. 6.10 Water Service. Water service shall be provided to the Property in accordance with the Utility Agreement. 6.11 Contractors. If any Party engages a Contractor to construct Infrastructure, such Party shall incorporate the requirements of this Article VI into a written construction contract with the Contractor. All such contracts shall provide that the City is a third-party beneficiary of and may enforce such contracts against the Contractor. 6.12 Operation and Maintenance of Infrastructure. The District shall cause all Infrastructure under the District's control to be operated and maintained in accordance with the Governing Regulations. 6.13 As-Built Drawings. The District shall deliver mylar as-built drawings for all Infrastructure to the City Inspector within 30 days after final inspection. Agreement Concerning Operation - Brookfield Page 10 97304 i ARTICLE VII REPORTING REQUIREMENTS The District shall: (a) send a copy of each order or other action setting an ad valorem tax rate to the City Secretary, City Manager, and Finance Director within thirty (30) days after the District adopts the rate; (b) send a copy of each annual audit (when required to be conducted by TCEQ rules) to the City Secretary, City Manager, and Finance Director within thirty (30) days after approval by the Board; and (c) provide copies of any material event notices filed under applicable federal securities laws or regulations to the City Secretary, City Manager, and Finance Director within thirty (30) days after filing such notices with the applicable information repositories. ARTICLE VIII AREA OF, AND LIMITATIONS ON, SERVICE The District shall not sell or deliver services to areas outside the District without prior City Council approval; provided, however, the District may serve a maximum of ten (10) equivalent residential water connections outside the District with the Water Director's written approval. ARTICLE IX CONVERSION, ANNEXATION OR DISANNEXATION BY DISTRICT Except as provided in Article III, the District shall not: (a) annex any additional lands to the District; (b) convert into another type of district; (c) consolidate with another district; (d) divide into two or more new districts; or (e) seek additional governmental powers beyond those described in Chapters 49, 51 and 53 of the Water Code and Section 5.02 of this Agreement without prior City Council approval. ARTICLE X ANNEXATION OF DISTRICT BY CITY 10.01 General Terms. The Parties acknowledge and agree that the Property lies wholly within the City's ETJ; is not bordered by another city, town, or village; and is not currently included in the City's annexation plan. 10.02 Incorporation. In furtherance of the purposes of this Agreement, the District covenants and agrees to the extent allowed by law that, except upon written consent of the City Council, the District shall not: (a) seek or support any effort to incorporate the Property or any part thereof, or (b) sign, join in, associate with, or direct to be signed any petition seeking to incorporate any of the Property or seeking to include any of the Property within the boundaries of any other incorporated entity. 10.03 Notice. Within thirty (30) days after the Effective Date, the District shall file in the real property records of Denton County: (a) a notice in the form required by Section 49.-I,;, Aorcement Concerning Operation - Brookfield Page I I � ;u 4 of the Water Code; and (b) a notice in the form of Exhibit D attached to this Agreement stating that the City has the authority to annex the Property subject to the limitations set forth in Section 10.04. 10.04 Full Purpose Annexation. The City shall not annex the District (or a portion of the District if permitted by law) for full purposes until on or after the earlier to occur of. (a) the dissolution of the District (other than as the result of annexation by the City); or (b) 15 years after the Effective Date of the Development Agreement; provided, however, the City may annex a portion of the District as needed to connect areas annexed for the limited purpose of collecting sale and use tax, in accordance with the Strategic Partnership Agreement. ARTICLE XI TERM OF AGREEMENT This Agreement shall be effective from the Effective Date and shall continue in effect until the District is annexed for full purposes and dissolved by the City or until terminated in writing by mutual agreement of the City and the District. ARTICLE XII BREACH, NOTICE AND REMEDIES 12.01 Notification of Breach. If a Party commits a breach of this Agreement, the non- breaching Party shall give Notice to the breaching Party that describes the breach in reasonable detail. 12.02 Cure of Breach. The breaching Party shall commence curing such breach within fourteen (14) calendar days after the time the breaching Party receives such Notice and complete the cure within 14 calendar days from the date of commencement of the cure; however, if the breach is not reasonably susceptible to cure by the breaching Party within such 14-day period, the non-breaching Party shall not bring any action so long as the breaching Party has commenced to cure the default within such 14-day period and diligently completes the cure within a reasonable time without unreasonable cessation of the work. 12.03 Remedies for Breach. If the breaching Party does not substantially cure such breach within the stated period of time, the non-breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, law, or equity, seek an action under the Uniform Declaratory Judgment Act, specific performance, mandamus, injunctive relief, and other remedies described in this Agreement; provided, however, that the non-breaching Party shall not be entitled to terminate this Agreement and each Party specifically waives any right such Party has or in the future may have to terminate this Agreement (except for the right of the City to terminate as provided in Article XI of this Agreement). No Party will seek or recover actual, consequential or any other type of monetary damages or awards, including but not limited to attorney's fees, in the event that any Party brings suit under or related to this Agreement. 12.04 Governmental Powers;. Waiver of Immunity. By execution of this Agreement, neither the City nor the District waives or surrenders any of their respective governmental powers. immunities or rights, except as specifically waived pursuant to this section. The Cite and the District mutually waiyc their governmental immunity from suit and liability only as to Agreement Concerning Operation - Brookfield Pave 12 973o a any action brought by a Party to pursue the remedies available under this Agreement and only to the extent necessary to pursue such remedies. Nothing in this section shall waive any claims, defenses or immunities that the City or the District has with respect to suits against the City or the District by persons or entities not a party to this Agreement. ARTICLE XIII ADDITIONAL PROVISIONS 13.01 Notice. Any notices, certifications, approvals, or other communications (a "Notice") required to be given by one Party to another under this Agreement shall be given in writing addressed to the Party to be notified at the address set forth below and shall be deemed given: (a) when the Notice is delivered in person to the person to whose attention the Notice is addressed; (b) when received if the Notice is deposited in the United States Mail, certified or registered mail, return receipt requested, postage prepaid; (c) when the Notice is delivered by Federal Express, UPS, or another nationally recognized courier service with evidence of delivery signed by any person at the delivery address; or (d) five business days after the Notice is sent by FAX (with electronic confirmation by the sending FAX machine) with a confirming copy sent by United States mail within 48 hours after the FAX is sent. If any date or period provided in this Agreement ends on a Saturday, Sunday, or legal holiday, the applicable period for calculating the Notice shall be extended to the first business day following the Saturday, Sunday, or legal holiday. For the purpose of giving any Notice, the addresses of the Parties are set forth below. The Parties may change the information set forth below by sending Notice of such changes to the other Party as provided in this section. To the City: City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: City Secretary FAX: 817-392-6196 City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: City Manager FAX: 817-392-6134 City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: Planning and Development Director FAX: 817-392-7985 Agreement Concernim, Operation - Brookfield Pa-e 13 9730 4 s t f City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: City Attorney FAX: 817-392-8359 City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: Finance Director FAX: 817-392-8966 City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: Transportation and Public Works Director FAX: 817-392-8092 To the District: South Denton County Water Control and Improvement District No. 1 c/o: Crawford & Jordan, LLP 19 Briar Hollow Lane Suite 245 Houston, Texas 77027 Attn: Chris Jordan FAX: 214-981-9071 13.02 No Waiver. Any failure by a Party to insist upon strict performance by the other Party of any material provision of this Agreement shall not be deemed a waiver thereof, and the Party shall have the right at any time thereafter to insist upon strict performance of any and all provisions of this Agreement. No provision of this Agreement may be waived except by writing signed by the Party waiving such provision. Any waiver shall be limited to the specific purposes for which it is given. No waiver by any Party hereto of any term or condition of this Agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 13.03 Governing Law and Venue. THIS AGREEMENT MUST BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, AS THEY APPLY TO CONTRACTS PERFORMED WITHIN THE STATE OF TEXAS AND WITHOUT REGARD TO ANY CHOICE OF LAW RULES OR PRINCIPLES TO THE CONTRARY. THE PARTIES ACKNOWLEDGE THAI` THIS AGREEMENT IS PERFORMABLE IN DENTON COUNTY, TEXAS AND HEREBY SUBMIT TO THE JURISDICTION OF THE COURTS OF DENTON COUNTY, TEXAS AND AGREE THAT ANY SUCH COURT SHALL BE A PROPER FORUM FOR THE DETERMINATION OF ANY DISPUTE ARISING HEREUNDER. Aorccment Concerning Operation - Brookfield Page 14 1)?;o4 i 13.04 Authority to Execute. The City warrants that this Agreement has been approved by the City Council in accordance with the City Charter and City Ordinances and all applicable public meeting and public notice requirements (including, but not limited to, notices required by the Texas Open Meetings Act) and that the individual executing this Agreement on behalf of the City has been authorized to do so. The District warrants that this Agreement has been approved by the Board in accordance with all applicable public meeting and public notice requirements (including, but not limited to, notices required by the Texas Open Meetings Act) and that the individual executing this Agreement on behalf of the Board has been authorized to do so. 13.05 Severability. The provisions of this Agreement are severable and, in the event any word, phrase, clause, sentence, paragraph, section, or other provision of this Agreement, or the application thereof to any person or circumstance, shall ever be held or determined to be invalid, illegal, or unenforceable for any reason, and the extent of such invalidity or unenforceability does not cause substantial deviation from the underlying intent of the parties as expressed in this Agreement, then such provision shall be deemed severed from this Agreement with respect to such person, entity or circumstance, without invalidating the remainder of this Agreement or the application of such provision to other persons, entities or circumstances, and a new provision shall be deemed substituted in lieu of the provision so severed which new provision shall, to the extent possible, accomplish the intent of the Parties as evidenced by the provision so severed. 13.06 Changes in State or Federal Laws. If any state or federal law changes so as to make it impossible for the City or the District to perform its obligations under this Agreement, the Parties will cooperate to amend the Agreement in such a manner that is most consistent with the original intent of the Agreement as legally possible. 13.07 Additional Documents and Acts. The Parties agree that at any time after execution of this Agreement, they will, upon the request of any other Party, execute and/or exchange any other documents necessary to effectuate the terms of this Agreement and perform any further acts or things as the other Party may reasonably request to effectuate the terms of this Agreement. 13.08 Captions. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of the Agreement. 13.09 Assignment. Neither the District nor the City may assign this Agreement without the written consent of the other Party. 13.10 Amendment. This Agreement may be amended only with the written consent of both Parties and with approval of the governing bodies of the City and the District. 13.1 1 Interpretation. The Parties acknowledge that each party and, if it so chooses, its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. As used in this Agreement, the term "including" means "including without limitation" and the term "days" means calendar days. not business days. Wherever required by the context. the singular shall A,-'reement Concernim, Operation - Brookfield Page 15 9730 4 include the plural, and the plural shall include the singular. Each defined term herein may be used in its singular or plural form whether or not so defined. 13.12 Third-Party Beneficiaries. This Agreement is solely for the benefit of the Parties, and for the benefit of Owner as a third-party beneficiary. Neither the City nor the District intends by any provision of this Agreement to create any rights in any third-party beneficiaries other than Owner or to confer any benefit upon or enforceable rights under this Agreement or otherwise upon anyone other than the City, the District and Owner. 13.13 Incorporation of Exhibits by Reference. All exhibits attached to this Agreement are incorporated into this Agreement by reference for the purposes set forth herein, as follows: Exhibit A Map of Property Exhibit B Legal description of the Property Exhibit C Strategic Partnership Agreement Exhibit D Annexation Notice 13.14 Conspicuous Provisions. The City and the District acknowledge that the provisions of this Agreement set out in bold, CAPITALS (or any combination thereof) satisfy the requirements for the express negligence rule and/or are conspicuous. 13.15 Counterpart Originals. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original. THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK Agreement Concerning Operation - Brookfield Page 16 97,o-1 ATTEST: CITY OF FORT WORTH All By: o ' Marty Hendrix, ity Secr ° 000 Assistant City Manager 0.1 APPROVED AS TO 170�48' LEGALITY: �� 0 ° ° 0000000 a Assistan City Attorney' uOntraci_ Authorization STATE OF TEXAS COUNTY OF TARRANT This instrumen was acknowledged before me, on the by // day of �(/ f— 2011 Assistant City Manager of the City of Fort Worth,Texas on behalf of said city, otary Public �VOW;,4-:14,VI;�5-Z,5 ate of Te Printed Name: My Commission Expires:_ 7-10 - 3 [SEAL] FVONIA DANIELS �• MY COMMISSION EXPIRES July 10,2013 OFFICIAL RJTX CITY SECR FT. WORT ngrcement Concerning Operation - Brookfield Page 17 9730.4 SOUTH DENTON COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 1 C.--- yI(-C President, Boa of Direct rs Date: S to n t 2 , Z 0 C I STATE OF TEXAS § COUNTY OF �E-NTON § by� This instrument was acknowledged before me, on the 22`)I-day of `)ut'1� 2011 ?f� f�4r��0������. President, Board of Directors of South Denton County Water Control and Improvement District No. 1, on behalf of said district. No y blic, State of Texas P me Name: y ommission Expires: CHRIS JORDAN [SEA '' " PAY COMMISSION EXPIRES Apel 11,2015 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Agreement Concerning Operation - Brookfield Page 18 9730.4 Exhibit A Map of Property i 6 fi- - I L I �OUN;Y I INF RD. 5 c.� It r\ I I I I d a r Q o Exhibit A— Page I Agreement Concerning Operation 97;O 4 Exhibit B Legal Description of the Property BEING a tract of land located in the WILLIAM C. HALLMARK SURVEY, ABSTRACT NO. 518, Denton County, Texas and being all of a tract of land described as Tract 1 and 2 in Deed to Brookfield Acquisitions, L.P., recorded in Document Number 2007-45036, Deed Records, Denton County, Texas and being more particularly described as follows: BEGINNING at a concrete monument with a 1/2 inch iron rod found in the North right-of-way line of State Highway No. 114, a 100 foot right-of-way, at the Southeast corner of said Tract 2; THENCE North 89 degrees 31 minutes 05 seconds West, along said North right-of-way line, a distance of 1,026.70 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set at the Southeast corner of a tract of land described in Deed to Willow Bend 114, recorded in Document Number 2005- 8893, Deed Records, Denton County, Texas; THENCE North 00 degrees 19 minutes 46 seconds East, a distance of 2,518.47 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "5439" found at the Northeast corner of Lot 13, Block A of WILLOW SPRINGS SUBDIVISION, an Addition to Denton County, Texas according to the Plat thereof recorded in Cabinet D, Page 317, Plat Records, Denton County, Texas; THENCE South 89 degrees 59 minutes 13 seconds West, along the North line of said Lot 13, a distance of 13.26 feet to a 1 inch iron rod found at the Southeast corner of a tract of land described in Deed to Robert B. Logan, recorded in Volume 515, Page 92, Deed Records, Denton County, Texas; THENCE North 00 degrees 14 minutes 58 seconds East, a distance of 1,563.70 feet to a 3/8 inch iron rod found at the Northwest corner of said Tract 1; THENCE South 89 degrees 28 minutes 37 seconds East, a distance of 3,160.54 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "E,C&D" found at the Northeast corner of said Tract 1; THENCE South 00 degrees 15 minutes 25 seconds East, a distance of 2,753.84 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at the most Easterly Southeast corner of said Tract 1; THENCE North 89 degrees 36 minutes 34 seconds West, a distance of 2,150.81 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at an inner ell corner of said Tract 1; THENCE South 00 degrees 08 minutes 43 seconds West, a distance of 1,322.76 feet to the POINT OF BEGINNING and containing 231.579 acres of land, more or less. L.xhibit B Pa,-,e I A-I-Cement Conccrning, Operation y'3u d Exhibit C Strategic Partnership Agreement Fxhibit C— Page 1 Agreement Concerning Operation 9730 4 STRATEGIC PARTNERSHIP AGREEMENT BETWEEN THE CITY OF FORT WORTH, TEXAS AND SOUTH DENTON COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 1 STATE OF TEXAS § COUNTY OF DENTON § This Strategic Partnership Agreement (this "Agreement") is entered into by the City of Fort Worth, a home-rule municipal corporation situated in Parker, Tarrant, Denton and Wise Counties, Texas (the "City"), acting by and through its duly authorized Assistant City Manager, and South Denton County Water Control and Improvement District No. 1 (the "District"), acting by and through its duly authorized Board of Directors, under the authority of Section 43.0751 of the Texas Local Government Code ("Local Government Code"). RECITALS A. Local Government Code, Section 43.0751 (the "Act"), authorizes the City and a municipal utility district to negotiate and enter into a strategic partnership agreement by mutual consent. B. This Agreement authorizes the City to annex certain tracts of land within the District that have been or may in the future be designated for commercial use for limited purposes for the purpose of collecting Sales and Use Tax Revenues within such commercial tracts and to annex all land within the District for full purposes on terms acceptable to the City and the District. C. Pursuant to this Agreement the City will pay to the District an amount equal to a portion of such Sales and Use Tax Revenues, which may be used to fund the installation and construction of Infrastructure and for other purposes in accordance with this Agreement. D. The District and the City acknowledge that this Agreement provides benefits to each party, including revenue, services and regulatory benefits. E. The District and the City acknowledge that this Agreement does not require the District to provide revenue to the City solely for the purpose of obtaining an agreement with the City to forgo annexation of the District. NOW TIIEREFORE, for and in consideration of the mutual agreements, covenants, and conditions contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are acknowledged, the District and the City agree as follows: Strategic Partnership Agreement Brookfield Page 1 97322 ARTICLE I FINDINGS A. The District is a conservation and reclamation district created by the Texas Commission on Environmental Quality ("TCEQ"), pursuant to Article XVI, Section 59, of the Texas Constitution, and Chapters 49 and 51 of the Texas Water Code. B. On January 4, 2005, the City Council adopted Resolution No. 3157-01-2005 consenting to the creation of the District(the "Consent Resolution"). C. On January 25, 2011, the City Council approved that certain Agreement Concerning Operation of South Denton County Water Control and Improvement District No. 1 (City Secretary Contract No. , M & C C-24720) (the "Operating Agreement"). D. The District encompasses approximately 231.579 acres, more or less, all of which are located within Denton County, Texas, and within the extraterritorial jurisdiction of the City, as shown on Exhibit A and described in Exhibit B attached to this Agreement (the "Property"). E. Brookfield Acquisitions, L.P., a Texas limited partnership ("Owner"), has represented to the City and the District: that it owns the Property. F. Owner and the City have entered into the Development Agreement between the City of Fort Worth, Texas and Brookfield Acquisitions, L.P. for the Brookfield Development (City Secretary Contract No. , M & C C-24720) governing the Property, which includes land use and development standards that are designed to produce a quality mixed-use development and which provides, among other things, that commercial development may occur on Tract 1, consisting of approximately 5.486 acres, and Tract 2, consisting of approximately 5.825 acres, as shown on Exhibit C and described on Exhibit D attached to this Agreement. G. The City, Owner, the :District and Aqua Utilities, Inc., doing business as Aqua Texas, Inc. ("Aqua Texas") have entered into the Agreement Regarding Water and Sewer Utility Service (City Secretary Contract No. , M & C C-24720) relating to the provision of water and wastewater service to the Property, certificates of convenience and necessity for the Property, and construction, ownership, operation and maintenance of water and wastewater infrastructure to serve the Property (the "Utility Agreement"). H. The City and the District desire to enter into this Agreement providing for limited purpose annexation of the portions of the Property within which commercial uses may occur for the purpose of collecting Sales and Use Tax Revenues within the annexed areas in accordance with Subsection (k) of the Act, and for the sharing of Sales and Use Tax Revenues between the City and the District. L The District provided notice of two public hearings concerning the adoption of this Agreement and the proposed limited purpose annexation of the Original Commercial Property, as defined below, in accordance with the procedural requirements of the Act. J. The Board of Directors of the District conducted two public hearings regarding this A�oreement and the proposed limited purpose annexation of the Original Commercial Strategic Partnership Agreement Brookfield Pa-e 2 97;2 2 Property, at which members of the public who wished to present testimony or evidence regarding this Agreement and the proposed limited purpose annexation were given the opportunity to do so, in accordance with the procedural requirements of the Act on , 20—, at .m. at and on , 20_, at .m. at_ K. The Board of Directors of the District approved this Agreement on 20_, in open session at a meeting held in accordance with Chapter 551 of the Government Code. L. The City provided notice of two public hearings concerning the adoption of this Agreement and the proposed limited purpose annexation of the Original Commercial Property, in accordance with the procedural requirements of the Act. M. The City Council conducted two public hearings regarding this Agreement and the proposed limited purpose annexation of the Original Commercial Property, at which members of the public who wished to present testimony or evidence regarding this Agreement and the proposed limited purpose annexation were given the opportunity to do so, in accordance with the procedural requirements of the Act on , 20_, at m., at the City Council Chambers and on , 20_, at m., at the City Council Chambers. N. The City Council approved this Agreement on , 20_, in open session at a meeting held in accordance with Chapter 551 of the Government Code (M & C ), which approval occurred after the Board of Directors of the District approved this Agreement. O. All procedural requirements imposed by law for the adoption of this Agreement have been met. P. Pursuant to the Utility Agreement, Owner on behalf of the District will construct or cause to be constructed, certain water and wastewater facilities to serve the Property and Aqua Texas will provide retail service to the Property until the City elects to become the retail water and wastewater provider. Q. In accordance with the requirements of Subsection (p)(2) of the Act, this Agreement provides benefits to the City and the District, including revenue, services, and regulatory benefits which are reasonable and equitable with regard to the benefits provided to the other. ARTICLE II DEFINITIONS "Perms used in this Agreement shall have the following meanings: "Act" means the Texas Local Government Code, Section 4').075 and any amendments thereto. Strategic Partnership Agreement — Brookfield Pa(—.e 3 9'32 2 "Additional Commercial Property" means any property within the District Boundaries designated for commercial use, other than the Original Commercial Property. "Agreement" means this Strategic Partnership Agreement between the City and the District. "Board" means the Board of Directors of the District. "Bond" means (a) any instrument, including a bond, note, certificate of participation, or other instrument evidencing a proportionate interest in payments, due to be paid by the District, or (b) any other type of obligation that (1) is issued or incurred by the District under the District's borrowing power, without regard to whether it is subject to annual appropriation, and (2) is represented by an instrument issued in bearer or registered form or is not represented by an instrument but the transfer of which is registered on books maintained for that purpose by or on behalf of the District. The term shall include obligations issued to refund outstanding bonds but shall not include reimbursement agreements entered into between the District and a developer of the Property or bond anticipation notes. "City" means the City of Fort Worth, Texas, a home rule municipality located in Parker, Tarrant, Wise, and Denton Counties. "City Council" means the City Council of the City. "City Secretary" means the City Secretary of the City. "City Manager" means the City Manager of the City. "City Share" means the City's share of Sales and Use Tax Revenues as defined by Section 4.02 of this Agreement. "Comptroller" means the Comptroller of Public Accounts of the State of Texas. "Development Agreement" means the Development Agreement between the City of Fort Worth, Texas and Brookfield Acquisitions, L.P. for the Brookfield Development (City Secretary Contract No. , M & C C-24720). "District" means South Denton County Water Control and Improvement District No. 1. "District Boundaries" means the boundaries of the 231.579-acre tract as shown on Exhibit A and described on Exhibit B. "District Confirmation Date" means November 15, 2007. "District Share" means the District's share of Sales and Use Tax Revenues as defined by Section 4.02 of this Agreement. "Effective Date" means the date of adoption of this Agreement by the City. "ETJ" means the extraterritorial jurisdiction of a city as defined by the Local Government Code, as amended. with the City's ETJ being an unincorporated area presently extending tjce miles Stiate�,ic Partnership Agreement- Brookfield Pa -e a 9732 2 from the City's corporate limits, excluding other incorporated municipalities and their respective ETJs. "Finance Director" means the Director of the City's Finance Department. "Government Code" means the Texas Government Code, as amended. "Infrastructure" means all water, wastewater, drainage, roadway and other infrastructure improvements installed or constructed to serve the Property, whether located within or outside the Property. "Limited Purpose Annexation Period" means the period commencing on the effective date of the limited purpose annexation of any Limited Purpose Property and ending upon the full purpose annexation or disannexation of such property. "Limited Purpose Property" means the property in the District that is annexed for limited purposes pursuant to this Agreement, including the Original Commercial Property and any Additional Commercial Property. "Local Government Code" means the "Texas Local Government Code, as amended. "Notice" means notice as defined in Section 8.01 of this Agreement. "Operation Agreement" means the Agreement Concerning Operation of South Denton County Water Control and Improvement District No. 1 (City Secretary Contract No. M & C C-24720) between the City and the District. "Original Commercial Property" means that certain 5.486-acre tract (Tract 1) and that certain 5.825-acre tract (Tract 2) designated for commercial use in the Development Agreement, as shown on Exhibit C and described on Exhibit D. "Owner" means Brookfield Acquisitions, L.P., a Texas limited partnership, its successors and assigns. "Party" means, individually, the City or the District, their successors and assigns as permitted by Section 8.10 of this Agreement. "Property" means approximately 231.579 acres of land located in Denton County, Texas, as shown on Exhibit A and described on Exhibit B. "Sales and Use Tax Revenues" means those revenues received by the City from the sales and use tax authorized to be imposed by the City on sales consummated at locations within the Limited Purpose Property pursuant to the Act and Chapter 321 of the Tax Code and whose use is not otherwise controlled or regulated, in whole or in part, by another governmental entity, authority, or applicable law, ordinance, rule, or regulation. Sales and Use Tax Revenues specifically exclude those revenues received by the City from the Crime Control District Sales Tax imposed by the City pursuant to Tax Code Section 323.105 and Local Government Code Section 363.055. Strategic Partnership n-reement Brookfield pa"� 1)2 2 "Sales and Use Tax Account" means the account established pursuant to Section 4.03 in which the District deposits the District Share. "Tax Code" means the Texas Tax Code, as amended. "Utility Agreement" means that certain Agreement Regarding Water and Sewer Utility Service between Aqua Texas, the Owner, and the City executed (City Secretary Contract No. M & C C-24720). ARTICLE III ADOPTION OF AGREEMENT AND LIMITED-PURPOSE ANNEXATION OF ORIGINAL COMMERCIAL PROPERTY AND ADDITIONAL COMMERCIAL PROPERTY 3.01 Public Hearings. The District and the City acknowledge and agree that prior to the execution of this Agreement, the governing bodies of the District and the City have conducted public hearings for the purpose of considering the adoption of this Agreement and that such hearings were noticed and conducted in accordance with the terms of the Act, this Agreement, Chapter 551 of the Government Code, and the City's charter. 3.02 Effective Date. Pursuant to Subsection (c) of the Act, this Agreement is effective the date of adoption of this Agreement by the City. 3.03 Filing in Property Records. The City shall file this Agreement in the Real Property Records of Denton County, Texas. 3.04 Limited Purpose Annexation of Original Commercial Property. The District and the City agree that the City may annex all or any portion of the Original Commercial Property for the limited purpose of collecting Sales and Use Tax Revenues within the Original Commercial Property pursuant to Subsection (k) of the Act. The District acknowledges that the City Council may adopt a limited purpose annexation ordinance at a meeting conducted in accordance with Chapter 551 of the Government Code and further acknowledges that no additional notices, hearings, or other procedures are required by law in order to approve such limited purpose annexation. 3.05 Limited Purpose Annexation of Additional Commercial Property. In the event the location of proposed commercial development within the District is changed or additional property designated for commercial development is added, the City Council may annex the Additional Commercial Property for the limited purpose of collecting Sales and Use Tax Revenues within the Additional Commercial Property pursuant to Subsection (k) of the Act. The District acknowledges that the City Council may adopt a limited purpose annexation ordinance at a meeting conducted in accordance with Chapter 551 of the Government Code and further acknowledges that no additional notices, hearings, or other procedures are required by law to approve such limited purpose annexation. 3.06 Connections to the City Limits. The District agrees to cooperate with and assist the City in annexing land within the District for full purposes, as needed to connect the Original Commercial Property or the Additional Commercial Property to the City limits, provided that no Strategic Partnership Agreement - Brookfield Pay=e 6 y ;, such annexation results in dissolution of the District. Each such annexation shall comply with applicable law, including without limitation Section 43.071 of the Local Government Code. No area annexed pursuant to this section shall exceed 525 feet in width at its widest point. Notwithstanding the zoning designation approved for any such annexed area, such area may be developed and used in accordance with the Development Agreement. 3.07 Consent to Limited Purpose Annexation. THE DISTRICT ON BEHALF OF ITSELF AND ALL PRESENT AND FUTURE OWNERS OF LAND WITHIN THE DISTRICT BOUNDARIES HEREBY REQUESTS THAT THE CITY ANNEX THE ORIGINAL COMMERCIAL PROPERTY AND THE ADDITIONAL COMMERCIAL PROPERTY FOR LIMITED PURPOSES AS PROVIDED IN THIS AGREEMENT. THE DISTRICT CONSENTS TO SUCH ANNEXATION AND TO THE COLLECTION OF SALES AND USE TAX REVENUES BY THE CITY WITHIN SUCH LIMITED PURPOSE PROPERTY. SUCH CONSENT SHALL BIND THE DISTRICT AND EACH OWNER AND FUTURE OWNER OF LAND WITHIN THE DISTRICT BOUNDARIES. ARTICLE IV TAXATION AND PROVISION OF SERVICES 4.01 Collection of Sales and Use Tax Revenues. The City may impose a sales and use tax within the Limited Purpose Property pursuant to Subsection (k) of the Act. The sales and use tax shall be imposed on all eligible commercial activities at the rate of one percent or other rate allowed under future amendments to Chapter 321 of the Tax Code and imposed by the City. Collection of the Sales and Use Tax Revenues shall take effect on the date described in Section 321.102 of the Tax Code. 4.02 Payment of Sales and Use Tax. In return for the benefits received by the City pursuant to this Agreement, the City shall pay to the District an amount equal to 50% of the Sales and Use Tax Revenues collected during the first nineteen (19) years of the Limited Purpose Annexation Period, and paid to the City as reflected in sales tax reports provided by the Comptroller to the City. Thereafter, the City shall pay to the District an amount equal to 25% of the Sales and Use Tax Revenues collected commencing on the first day of the twentieth (20th) year of the Limited Purpose Annexation Period, and paid to the City as reflected in the sales tax reports paid by the Comptroller to the City. All amounts payable to the District pursuant to this Section 4.02 are hereafter referred to as the "District Share" The City shall pay the District Share within thirty (30) days after the City receives the sales tax report reflecting such revenues from the Comptroller. Any payment of the District Share not made within such 30-day period shall bear interest calculated in accordance with Section 2251.025 of the Government Code. The City shall retain all Sales and Use Tax Revenues that do not constitute the District Share (the "City Share"). 4.03 District Use of Sales and Use Tax Revenues. The District shall deposit the District Share in a segregated interest-bearing account (the "Sales and Use Tax Account"). The District shall use funds in the Sales and Use Tax Account in the following order of priority: (a) Reimbursement for the construction or installation of Infrastructure; (b) Funding the construction, acquisition or installation of'Infrastructure: Strate,,ic Partnership Algreement Brookfield Page 7 973?2 (c) Funding for any purpose for which the District may legally expend funds (including, but not limited to, such items as District bond debt service, operational costs, and any contract tax obligations); provided, however, the District shall not fund any such items if the District's ad valorem tax rate is, or with such funding of any such items would be, less than 90% of the City's ad valorem tax rate for the previous year; and (d) Purchasing and retiring any Bond after the tenth anniversary of its issuance. 4.04 City Use of Sales and Use Tax Revenues. The City may use the City Share for any lawful purpose; provided, however, it is the City's intent to use the additional 25% share of the Sales and Use Tax Revenues beginning on the first day of the twentieth (20"') year of the Limited Purpose Annexation Period to defray the costs of providing municipal services to the residents of the Property upon full purpose annexation. 4.05 Delivery of Sales Tax Reports to District. The City shall include with each payment of the District Share a condensed version of each sales tax report provided by the Comptroller relating to Sales and Use Tax Revenues. 4.06 Notification of Comptroller. The City shall send notice of this Agreement, together with other required documentation, to the Comptroller in the manner provided by Tax Code, Section 321.102, after the City Council annexes any portion of the Limited Purpose Property for limited purposes. 4.07 Termination of Sales and Use Tax Sharing. Upon termination of this Agreement, the City shall have no further financial obligation to the District pursuant to this Agreement, and all Sales and Use Tax Revenues collected by the City from the Limited Purpose Property after the termination date shall be retained by the City and may be used for any lawful purpose. 4.08 City's Maintenance of Records and District's Audit Rights. The District may audit the Sales and Use Tax Revenues collected by the City to determine whether the District Share has been paid to the District in accordance with this Agreement. The City shall provide reasonable accommodations for the District to perform the audit. Any audit shall be made at the District's sole expense and may be performed at any time during the City's regular business hours on thirty (30) days Notice to the City. For purposes of any such audits, the City shall maintain and make available to the District's representatives all books, records, documents and other evidence of accounting procedures or practices in form sufficiently maintained to reflect the amount of Sales and Use Tax Revenues received by the City from the Limited Purpose Property. Notwithstanding the foregoing, however, if any audit conducted by the District reveals that the District Share has been underpaid by more than two percent (2%), the City shall reimburse the District for the reasonable cost of the audit. 4.09 District's Maintenance of Records and City's Audit Rights. The City may audit the Sales and Use Tax Account and the District's expenditures of the District Share to determine whether the expenditures have been made by the District in accordance with Section 4.03 of this Agreement. The District shall provide reasonable accommodations for the Cite to perform the Strategic Partnership Agreement— Brookfield H 97}22 audit. Any audit shall be made at the City's sole expense and may be performed at any time during the District's regular business hours on thirty (30) days Notice to the District. For purposes of any such audits, the District shall maintain and make available to the City's representatives all books, records, documents and other evidence of accounting procedures or practices in form sufficiently maintained to reflect deposits to the Sales and Use Tax Account and expenditures of the District Share. Notwithstanding the foregoing, however, if any audit conducted by the City reveals that the District has not used the District Share in accordance with Section 4.03, the District shall reimburse the City for the reasonable cost of the audit. Furthermore, if such breach is not cured as provided by Article VII, the City may withhold payments of future Sales and Use Tax Revenues in the amount of the improper expenditures. ARTICLE V FULL PURPOSE ANNEXATION 5.01 Full Purpose Annexation. In accordance with the terms of this Agreement and the Development Agreement, the City shall have the right, but not the obligation, to annex the Property (or a portion of the Property, to the extent permitted oses on or ct (other than as a result of annexation by by law) for full purp after the earlier to occur of: (a) dissolution of the District the City); or (b) January 25, 2026, which is fifteen (15) years after the Effective Date of the Development Agreement. 5.02 Procedure for Full Purpose Annexation. The City and the District acknowledge that the Property is exempt from inclusion in the City's municipal annexation plan pursuant to Section 43.052(h)(3)(B) of the Local Government Code. The District hereby consents, on its behalf and on behalf of all current and future owners of land included within the District Boundaries, to full purpose annexation of the Property in accordance with the provisions of this Agreement and the procedure for annexation of areas exempted from the municipal annexation plan contained in Chapter 43 of the Local Government Code, Subchapter C-1, or, if Subchapter C-1 is amended or repealed, in accordance with the most comparable annexation procedure. In the alternative, at City's election, the Property shall be deemed to be within the full-purpose boundary limits of the City on the full purpose annexation conversion date in accordance with Section 43.0751 of the Local Govennnent Code. The full purpose annexation conversion date shall be established by a resolution adopted by the City Council and shall be no earlier than the first to occur of the events described in Section 5.01. ARTICLE VI TERM This Agreement commences on the Effective Date and continues until the City annexes the Property for full purposes (subject to the provisions of the Development Agreement). The provisions of this Agreement relating to the collection of sales and use tax will automatically terminate with regard to any portion of the Limited Purpose Property upon disannexation or full Purpose annexation of such property. Strategic Partnership Agreement— Brookfield Page 9 97322 a ARTICLE VII BREACH, NOTICE AND REMEDIES 7.01 Notification of Breach. If either Party commits a breach of this Agreement, the non-breaching Party shall give Notice to the breaching Party that describes the breach in reasonable detail. 7.02 Cure of Breach. The breaching Party shall commence curing such breach within fourteen (14) calendar days after receipt of Notice of the breach and shall complete the cure within fourteen (14) calendar days from the date of commencement of the cure; however, if the breach is not reasonably susceptible to cure by the breaching Party within such fourteen (14) day period, the non-breaching Party shall not bring any action so long as the breaching Party has commenced to cure the default within such fourteen (14) day period and diligently completes the work within a reasonable time without unreasonable cessation of the work. 7.03 Remedies for Breach. If the breaching Party does not substantially cure such breach within the stated period of time, the non-breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, law, or equity, seek any relief available at law or in equity, including, but not limited to, an action under the Uniform Declaratory Judgment Act, specific performance, mandamus and injunctive relief, provided, however, the non-breaching Party shall not be entitled to terminate this Agreement. The Parties specifically waive any right that they have or in the future may have to terminate this Agreement. Damages, if any, to which any non-breaching Party may be entitled shall be limited to actual damages and shall not include special or consequential damages. In addition, the prevailing party in any such action shall be entitled to reasonable attorney's fees and costs of litigation as determined in a final, non-appealable order in a court of competent jurisdiction. ARTICLE VIII ADDITIONAL PROVISIONS 8.01 Notice. Any notices, certifications, approvals, or other communications (a "Notice") required to be given by one Party to another under this Agreement shall be given in writing addressed to the Party to be notified at the address set forth below and shall be deemed given: (a) when the Notice is delivered in person to the person to whose attention the Notice is addressed; (b) when received if the Notice is deposited in the United States Mail, certified or registered mail, return receipt requested, postage prepaid; (c) when the Notice is delivered by Federal Express, UPS, or another nationally recognized courier service with evidence of delivery signed by any person at the delivery address; or (d) five business days after the Notice is sent by FAX (with electronic confirmation by the sending FAX machine) with a confirming copy sent by United States mail within 48 hours after the FAX is sent. If any date or period provided in this Agreement ends on a Saturday, Sunday, or legal holiday, the applicable period for calculating the notice shall be extended to the first business day following the Saturday, Sunday, or legal holiday. For the purpose of giving any Notice, the addresses of the Parties are set forth below. The Parties may change the information set forth below by sending Notice of such changes to the other Party as provided in this section. Strate_,ic Partnership Agreement Brookfield Page 10 9732 2 t r F To the City: City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: City Secretary FAX: 817-392-6196 City of Fort Worth, Texas 1000 Throckmorton Street Attn: City Manager Fort Worth, Texas 76102 Attn: City Manager FAX: 817-392-6134 City of Fort Worth, Texas 1000 Throckmorton Street Attn: Finance Director Fort Worth, Texas 76102 Attn: Finance Director FAX: 817-392-8966 To the District: South Denton County Water Control and Improvement District No. 1 c/o: Crawford & Jordan, LLP 19 Briar Hollow Lane Suite 245 Houston, Texas 77027 Attn: Chris Jordan FAX: 214-981-9071 8.02 Payments. The City shall forward payments of the District Share to the District at the address set out in Section 8.01 by regular U.S. Mail or other method of delivery mutually acceptable to the Parties. 8.03 No Waiver. Any failure by a Party to insist upon strict performance by the other Party of any provision of this Agreement shall not be deemed a waiver thereof, and the Party shall have the right at any time thereafter to insist upon strict performance of any and all of the provisions of this Agreement. No provision of this Agreement may be waived except by writing signed by the Party waiving such provision. Any waiver shall be limited to the specific purpose for which it is given. No waiver by any Party hereto of any term or condition of this Agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. Strate�ic Nailnership A-reement— Brookfield Page I I y ;>2 8.04 Governing Law and Venue. THIS AGREEMENT MUST BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, AS THEY APPLY TO CONTRACTS PERFORMED WITHIN THE STATE OF TEXAS AND WITHOUT REGARD TO ANY CHOICE OF LAW RULES OR PRINCIPLES TO THE CONTRARY. THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT IS PERFORMABLE IN DENTON COUNTY, TEXAS AND HEREBY SUBMIT TO THE JURISDICTION OF THE COURTS OF DENTON COUNTY, TEXAS AND AGREE THAT ANY SUCH COURT SHALL BE A PROPER FORUM FOR THE DETERMINATION OF ANY DISPUTE ARISING HEREUNDER. 8.05 Authority to Execute. The City warrants that this Agreement has been approved by the City Council in accordance with the City Charter and City Ordinances and all applicable public meeting and public notice requirements (including, but not limited to, notices required by the Texas Open Meetings Act) and that the individual executing this Agreement on behalf of the City has been authorized to do so. 8.06 Entire Agreement.• $eve_ rability. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, whether oral or written, covering the subject matter of this Agreement. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable for any reason, then (a) such unenforceable provision shall be deleted from this Agreement; (b) the unenforceable provision shall, to the extent possible, be rewritten to be enforceable and to give effect to the intent of the Parties; and (c) the remainder of this Agreement shall remain in full force and effect and shall be interpreted to give effect to the intent of the Parties. 8.07 Changes in State or Federal Laws. If any state or federal law changes so as to make it impossible for the City or the District to perform its obligations under this Agreement, the parties will cooperate to amend this Agreement in such a manner that is most consistent with the original intent of this Agreement as legally possible. 8.08 Additional Documents and Acts. The Parties agree that at any time after execution of this Agreement, they will, upon request of the other Party, execute and/or exchange any other documents necessary to effectuate the terms of this Agreement and perform any further acts as the other Party may reasonably request to effectuate the terms of this Agreement. 8.09 Captions. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 8.10 Assignability Successors and Assigns. This Agreement shall not be assignable without the other Party's written consent. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective representatives, successors, and assigns. 8.11 Amendment. This Agreement may be amended only by written agreement with approval of the governing bodies of the City and the District. 8.12 Interpretation. The Parties acknowledge that each party and, if it so chooses, its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of' this Agreement or any amendments or exhibits hereto. As used in this Strate-ic Partnership Agreement - Brookfield Page 12 9732 2 Agreement, the term "including" means "including without limitation" and the term "days" means calendar days, not business days. Wherever required by the context, the singular shall include the plural, and the plural shall include the singular. Each defined term herein may be used in its singular or plural form whether or not so defined. 8.13 No Third-Party Beneficiaries. This Agreement is solely for the benefit of the City and the District, and neither the City nor the District intends by any provision of this Agreement to create any rights in any third-party beneficiaries or to confer any benefit or enforceable rights under this Agreement or otherwise upon anyone other than the City and the District. 8.14 Governmental Powers. By execution of this Agreement, neither the City nor the District waives or surrenders any of its respective governmental powers, immunities or rights, except as specifically waived pursuant to this section. The City and the District mutually waive their governmental immunity from suit and liability only as to any action brought by a Party to pursue the remedies available under this Agreement and only to the extent necessary to pursue such remedies. Nothing in this section shall waive any claims, defenses or immunities that the City or the District has with respect to suits against the City or the District by persons or entities not a party to this Agreement. Nothing in this Agreement is intended to delegate or impair the performance by the City of its governmental functions, and the City waives any claim or defense that any provision of this Agreement is unenforceable on the grounds that it constitutes an impermissible delegation or impairment of the City's performance of its governmental functions. 8.15 Incorporation of Exhibits by Reference. All exhibits attached to this Agreement are incorporated into this Agreement by reference for the purposes set forth herein, as follows: Exhibit A Map of the Property Exhibit B Legal Description of the Property Exhibit C Map of Original Commercial Property Exhibit D Legal Description of Original Commercial Property 8.16 Conspicuous Provisions. The City and the District acknowledge that the provisions of this Agreement set out in bold, capitals (or any combination thereof) satisfy the requirements for the express negligence rule and/or are conspicuous. 8.17 Counterpart Originals. This Agreement may be executed in multiple counterparts, each of which shall be deemed to be an original. Strategic Partnership Agreement — Brookfield Page 13 97322 ATTEST: CITY OF FORT WORTH By: Marty Hendrix,-City Date: Assistant City Manager APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me, on the day of 20_, by , Assistant City Manager of the City of Fort Worth, Tex said city. as on behalf of Notary Public, State of Texas [SEAL) Printed Name: My Commission Expires: Strategic Partnership Agreement —Brookfield Page 14 9732 2 SOUTH DENTON COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 1 By: President, Board of Directors Date: STATE OF TEXAS § COUNTY OF § by This instrument was acknowledged before me, on the_ day of 20 , President, Board of Directors of South Denton County Water Control and Improvement District No. 1, on behalf of said district. Notary Public, State of Texas Printed Name: My Commission Expires: [SEAL] Strategic Partnership Aoreement _ Brookfield Page I 9732 2 Exhibit A Map of the Property s i ' Bo i t L li ". OUN Y"I INF R,`1. ,._•"S -._ /. z / r M. J 2 I - 9 r Strategic Partnership Agreement E3roExhibit A — Page I Afield 97322 Exhibit B Legal Description of Property BEING a tract of land located in the WILLIAM C. HALLMARK SURVEY, ABSTRACT NO. 518, Denton County, Texas and being all of a tract of land described as Tract 1 and 2 in Deed to Brookfield Acquisitions, L.P., recorded in Document Number 2007-45036, Deed Records, Denton County, Texas and being more particularly described as follows: BEGINNING at a concrete monument with a 1/2 inch iron rod found in the North right-of-way line of State Highway No. 114, a 100 foot right-of-way, at the Southeast corner of said Tract 2; THENCE North 89 degrees 31 minutes 05 seconds West, along said North right-of-way line, a distance of 1,026.70 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set at the Southeast corner of a tract of land described in Deed to Willow Bend 114, recorded in Document Number 2005-8893, Deed Records, Denton County, Texas; THENCE North 00 degrees 19 minutes 46 seconds East, a distance of 2,518.47 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "5439" found at the Northeast corner of Lot 13, Block A of WILLOW SPRINGS SUBDIVISION, an Addition to Denton County, Texas according to the Plat thereof recorded in Cabinet D, Page 317, Plat Records, Denton County, Texas; THENCE South 89 degrees 59 minutes 13 seconds West, along the North line of said Lot 13, a distance of 13.26 feet to a I inch iron rod found at the Southeast corner of a tract of land described in Deed to Robert B. Logan, recorded in Volume 515, Page 92, Deed Records, Denton County, Texas; THENCE North 00 degrees 14 minutes 58 seconds East, a distance of 1,563.70 feet to a 3/8 inch iron rod found at the Northwest corner of said Tract 1; THENCE South 89 degrees 28 minutes 37 seconds East, a distance of 3,160.54 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at the Northeast corner of said Tract 1; THENCE South 00 degrees 15 minutes 25 seconds East, a distance of 2,753.84 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at the most Easterly Southeast corner of said Tract 1; THENCE North 89 degrees 36 minutes 34 seconds West, a distance of 2,150.81 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at an inner ell corner of said Tract 1; THENCE South 00 degrees 08 minutes 43 seconds West, a distance of 1,322.76 feet to the POINT OF BEGINNING and containing 231.579 acres of land, more or less. Exhibit B - Page I Strategic Partnership Agreement Brookfield 9732 2 Exhibit C Map of Original Commercial Property ILIn , J` gm fit 7 1 r � OI k i• . 1 • � y r • r,r k . . 1 �i�' f,fib g rMF�Yk'�7Y�.i 4h� t{A}y 4a S�Is 1i r bq •7 � 3 � n¢ r0; "t"7�nppe r Sr�yFd �yy'G4 i � !'4 1 i c i.1 •ed aiyY - a f) P .- ic Strate is Partnership q� 1=xhibit C— Pa,,e 1 p , reement - Brookfield 9732.2 Exhibit D Legal Description of Original Commercial Property TRACT 1 5.486 ACRES BEING a tract of land located in the WILLIAM C. HALLMARK SURVEY, ABSTRACT NO. 518, Denton County, Texas and being part of a tract of land described as Tract 2 in Deed to Brookfield Acquisitions, L.P., recorded in Document Number 2007-45036, Deed Records, Denton County, Texas and being more particularly described as follows: BEGINNING at a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set in the North right-of-way line of State Highway No. 114, a 100 foot right-of-way, at the Southwest corner of said Tract 2, said point being North 89 degrees 31 minutes 05 seconds West, a distance of 1,026.70 feet from a concrete monument found at the Southeast corner of said Tract 2 THENCE North 00 degrees 19 minutes 46 seconds East, along the West line of said Tract 2, a distance of 686.80 feet to a point for corner; THENCE South 57 degrees 04 minutes 50 seconds East, leaving said West line, a distance of 417.13 feet to a point for corner; THENCE North 70 degrees 37 minutes 46 seconds East, a distance of 56.90 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE South 10 degrees 30 minutes 54 seconds East, a distance of 97.38 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE South 79 degrees 29 minutes 06 seconds West, a distance of 10.00 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE South 10 degrees 30 minutes 54 seconds East, a distance of 84.56 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner at the beginning of a curve to the right having a central angle of 10 degrees 59 minutes 49 seconds, a radius of 420.00 feet and a chord bearing and distance of South 05 degrees 00 minutes 59 seconds East, 80.49 feet; THENCE Southerly, along said curve to the right, an arc distance of 80.61 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE South 00 degrees 28 minutes 55 seconds West, a distance of 21 1.75 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE South 45 degrees 28 minutes 55 seconds West, a distance of 14.14 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner in the North right-of-way line of said State Highway No. 1 14 Strategic Partnership Agreement - Brookfield Exhibit D - Page 1 9732 2 THENCE North 89 degrees 31 minutes 05 seconds West, along said North right-of-way line, a distance of 426.33 feet to the POINT OF BEGINNING and containing 5.486 acres of land, more or less. TRACT 2 5.825 ACRES BEING a tract of land located in the WILLIAM C. HALLMARK SURVEY, ABSTRACT NO. 518, Denton County, Texas and being part of a tract of land described as Tract 1 and 2 in Deed to Brookfield Acquisitions, L.P., recorded in Document Number 2007-45036, Deed Records, Denton County, Texas and being more particularly described as follows: BEGINNING at a concrete monument found in the North right-of-way line of State Highway No. 114, a 100 foot right-of=way, at the Southeast corner of said Tract 2, said point being South 89 degrees 31 minutes 05 seconds East, a distance of 1,026.70 feet from a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set at the Southwest corner of said Tract 2; THENCE North 89 degrees 31 minutes 05 seconds West, along said North right-of-way line, a distance of 500.37 feet to a 60D set for corner; THENCE North 44 degrees 31 minutes 05 seconds West, leaving said North right-of-way line, a distance of 14.14 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE North 00 degrees 28 minutes 55 seconds East, a distance of 211.75 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner at the beginning of a curve to the left having a central angle of 10 degrees 59 minutes 49 seconds, a radius of 500.00 feet and a chord bearing and distance of North 05 degrees 00 minutes 59 seconds West, 95.82 feet; THENCE Northerly, along said curve to the left, an arc distance of 95.97 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE North 10 degrees 30 minutes 54 seconds West, a distance of 84.56 feet to a point for corner; THENCE South 79 degrees 29 minutes 06 seconds West, a distance of 10.00 feet to a point for corner; THENCE North 10 degrees 30 minutes 54 seconds West, a distance of 106.72 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE North 70 degrees 37 minutes 46 seconds East, a distance of 1 16.17 Leet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; Strategic Partnership Agreement- Brookfield Exhibit D - Page 2 9732.2 LL THENCE North 88 degrees 03 minutes 48 seconds East, a distance of 89.87 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set for corner; THENCE South 65 degrees 01 minutes 18 seconds East, a distance of 400.62 feet to a 1/2 inch iron rod with a yellow plastic cap stamped DAA set for corner in the East line of said Tract 1; THENCE South 00 degrees 08 minutes 43 seconds West, passing the Northeast corner of said Tract 2 at a distance of 6.97 feet and continuing for a total distance of 380.14 feet to the POINT OF BEGINNING and containing 5.825 acres of land, more or less. Strate-ic Partnership A-reement - Brookfield Exhibit D- Page 3 9732.2 Exhibit D Annexation Notice STATE OF TEXAS § COUNTY OF DENTON § NOTICE CONCERNING ANNEXATION AND SERVICES The real property described in Exhibit A attached hereto and incorporated herein is located in South Denton County Water Control and Improvement District No. 1 (the "District"). The District is located wholly within the extraterritorial jurisdiction of the City of Fort Worth. The City does not impose property taxes within the District and is not required by state law to provide police protection, fire protection, road maintenance or any other municipal services to the District. of: The City of Fort Worth may annex the District for full purposes upon the earliest to occur (1) Dissolution of the District; or (2) January 25, 2026. For additional information concerning potential annexation of the District, contact the City of Fort Worth Planning and Development Director. SOUTH DENTON COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 1 By: Name printed: Title: Exhibit D - Paoe I A�rerment Cuncernin�� Operation 9730 4 STATE OF TEXAS S s COUNTY OF § This instrument was acknowledged before me, on the_ day of by , President, Board of Directors of South Denton Count Water C 20 Improvement District No. 1, on behalf of said district. y ontrol and Notary Public, State of Texas Printed Name: My Commission Expires: [SEAL] After recording, return to: Water Director City of Fort Worth 1000 Throckmorton Fort Worth, TX 76102 Exhibit D— Page 2 A-reement Cunrernin,) o � Aeration 9730 4 Exhibit A BEING a tract of land located in the WILLIAM C. HALLMARK SURVEY, ABSTRACT NO. 518, Denton County, Texas and being all of a tract of land described as Tract 1 and 2 in Deed to Brookfield Acquisitions, L.P., recorded in Document Number 2007-45036, Deed Records, Denton County, Texas and being more particularly described as follows: BEGINNING at a concrete monument with a 1/2 inch iron rod found in the North right-of-way line of State Highway No, 114, a 100 foot right-of--way, at the Southeast corner of said Tract 2; THENCE North 89 degrees 31 minutes 05 seconds West, along said North right-of-way line, a distance of 1,026.70 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "DAA" set at the Southeast corner of a tract of land described in Deed to Willow Bend 114, recorded in Document Number 2005- 8893, Deed Records, Denton County, Texas; THENCE North 00 degrees 19 minutes 46 seconds East, a distance of 2,518.47 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "5439" found at the Northeast corner of Lot 13, Block A of WILLOW SPRINGS SUBDIVISION, an Addition to Denton County, Texas according to the Plat thereof recorded in Cabinet D, Page 317, Plat Records, Denton County, Texas; THENCE South 89 degrees 59 minutes 13 seconds West, along the North line of said Lot 13, a distance of 13.26 feet to a 1 inch iron rod found at the Southeast corner of a tract of land described in Deed to Robert B. Logan, recorded in Volume 515, Page 92, Deed Records, Denton County, Texas; THENCE North 00 degrees 14 minutes 58 seconds East, a distance of 1,563.70 feet to a 3/8 inch iron rod found at the Northwest corner of said Tract 1; THENCE South 89 degrees 28 minutes 37 seconds East, a distance of 3,160.54 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at the Northeast corner of said Tract 1; THENCE South 00 degrees 15 minutes 25 seconds East, a distance of 2,753.84 feet to a 1/2 inch iron rod with a yellow plastic cap stamped "EC&D" found at the most Easterly Southeast corner of said Tract 1; THENCE North 89 degrees 36 minutes 34 seconds West, a distance of 2,150.81 feet to a 1/2 Inch Iron rod with a yellow plastic cap stamped "EC&D" found at an inner ell corner of said Tract 1; THENCE South 00 degrees 08 minutes 43 seconds West, a distance of 1,322.76 feet to the POINT OF BEGINNING and containing 231.579 acres of land, more or less. Lxhibit D- Pare 3 Agreement Concerning Operation 9730 4 M&C Review • Page 1 of Official site of the City of Fort Worth,Texa: CITY COUNCIL AGENDA FORT WORTH �r COUNCIL ACTION: Approved on 1/25/2011 DATE: 1/25/2011 REFERENCE NO.: C-24720 LOG NAME: 60BROOKFIELD CODE. C TYPE: NOW PUBLIC CONSENT HEARING: NO SUBJECT: Authorize the Execution of the Strategic Partnership Agreement, Development Agreement, Agreement Concerning Operation of South Denton County Water Control and Improvement District No. 1 and Agreements Concerning Water and Wastewater Utility Service for the Brookfield Development Located Contiguous to State Highway 114 in the Extraterritorial Jurisdiction of the City of Fort Worth RECOMMENDATION: It is recommended that the City Council authorize the City Manager or a designee to execute the following agreements: 1. Strategic Partnership Agreement between the City and South Denton County Water Control Improvement District No. 1; and 2. Development Agreement between the City and Brookfield Acquisitions, L.P.; 3. Agreement Concerning Operation of the District between the City and the South Denton County Water Control and Improvement District No. 1 4. Water and Wastewater Utility Service Agreement between the City, South Denton County Water Control and Improvement District No. 1, Brookfield Acquisition L.P., and Aqua Utilities, Inc.; 5. Wholesale Water Service Agreement between the City and Aqua Utilities, Inc.; 6. Buy-Out Option Contract between the City, Aqua Utilities, Inc., Brookfield Acquisition L.P., South Denton County Water Control and Improvement District No. 1 7. Wholesale Wastewater Service Agreement between the City and Aqua Utilities, Inc. DISCUSSION: Brookfield owns and intends to develop approximately 231 acres in Fort Worth's extraterritorial jurisdiction as a mixed use development (the Development). The property fronts on State Highway 114 and is in Aqua Utilities, Inc.'s, water certificate of convenience and necessity (CCN). The property is in South Denton County Water Control and Improvement District (District) created by order of the Texas Commission on Environmental Quality dated April 19, 2007. The City Council consented to creation of the District by adoption of Resolution No.3157-01-2005 on January 4, 2005. The District and Brookfield have requested the City to consent to the issuance of bonds by the District to fund roads to serve the Development and have asked the City to provide water service to the Development in order to provide fire protection for residents. As consideration for approval of the documents listed above, Brookfield will extend 4.3 miles of 24-inch and 30-inch off-site water mains and 4.7 miles of 24 inch off-site sewer mains to connect the Development to the City's water and wastewater systems. The facilities will be constructed to City standards and will be over-sized at ttp://apps.cfwnet.org/council_packet/mc—review.asp?ID=1462lAzvn,inn; , -)C/-In, , M&C Review Page 2 of 2 Brookfield's expense, to serve other proposed developments in the area, subject to reimbursement pursuant to City policies. The Development will also be subject to City land use and development regulations. The documents, which are available for public inspection and copying in the City Secretary's Office, can be summarized as follows: The Strategic Partnership Agreement authorizes the City to annex property within the Development designated for retail development for the limited purpose of imposing sales and use tax. The agreement provides that the City and the District will divide the sales tax proceeds equally for the first 19 years. The City's share will increase to 75 percent commencing in year 20. The Development Agreement provides for the enforcement of municipal building codes and establishes land use and development regulations for the Development. The Agreement Concerning Operation of the District establishes conditions for operation of the District, including conditions on issuance of bonds and requirements to provide information concerning the District to the City. The four remaining agreements identified as items 4 through 7 above relate to utility service for the Development. Aqua Utilities, Inc., (Aqua Utilities) will provide the retail water and wastewater service to customers within the Development. Aqua Utilities will provide wholesale water and wastewater agreement for the first 190 residences constructed in the Development. Commencing with the 191 st residence constructed, the City will sell treated water service and wastewater service to Aqua Utilities on a wholesale basis. The City has the option to purchase the water and wastewater facilities in the Development from Aqua Utilities for$10, and to obtain the CCN for the Development and become the retail water and wastewater provider for the Development at any time after 17 years after the Development is connected to Fort Worth's water system. The Infrastructure and Transportation Committee received a presentation concerning the Development on October 12, 2010 and recommended approval of the documents. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: S. Frank Crumb (8207) Additional Information Contact: Paul Bounds (8567) ATTACHMENTS 60Brookfield WCID-FWSD_ITC-10-7-2010.pt http://apps.cfwnet.org/council_packet/mc_review.asp?ID=14623&counciIdate=1/25/2011 8/15/2011