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HomeMy WebLinkAboutResolution 4829-08-2017 A Resolution NO. 4829-08-2017 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS CONSENTING TO THE ADDITION OF 13.745 ACRES OF LAND BY FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES; PROVIDING FOR SEVERABILITY AND DECLARING AN EFFECTIVE DATE. WHEREAS, pursuant to Section 49.301 of the Texas Water Code, as amended, Northstar Ranch, LLC (the "Landowner")has petitioned the City for the addition of approximately 13.745 acres of land(the "Pro a ") to the boundaries of Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties (the "District"); and WHEREAS, the Property is located within the extraterritorial jurisdiction of the City of Fort Worth, Texas(the"C V);and WHEREAS, the District has provided the City with a copy of the Landowner's petition for the addition of the Property to the District and requested that the City provide a consent resolution evidencing the City's consent to such addition of the Property to the District; and WHEREAS, the City Council finds that it is in the public interest to grant consent to the addition of the Property to the District,taking into consideration the public health, safety, and general welfare; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,TEXAS: Section 1. The City hereby consents to the addition of the Property to the District, in accordance with the Landowner's petition to the City for such addition. A copy of the Landowner's petition, including the legal description of the Property, is attached hereto and incorporated herein by reference as Exhibit"A". Section 2. The consent of the City to the addition of the Property to the District does not in any way release the Property from the extraterritorial jurisdiction of the City. Section 3. The terms and provisions of this Resolution shall be deemed to be severable and if the validity of any section, subsection, clause, or phrase of this Resolution should be declared to be invalid,the same shall not affect the validity of any other section, subsection, sentence,clause or phrase of this Resolution. Section 4. This Resolution shall take effect ii-nm on its passage. Adopted this 151 day of August, 2017. F RT 0 ATTES U By: onald P. Gonzales, Aist nt City Secretary ........... XAS oRTWoFRTH PETITION FOR CONSENT TO ANNEX LAND INTO FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES TO THE HONORABLE MAYOR AND CITY COUNCIL OF THE CITY OF FORTH WORTH, TEXAS: The undersigned, FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES (the "District"), and NORTHSTAR RANCH, LLC, a Texas limited liability company (the "Petitioner"), acting pursuant to the provisions of Chapter 49, Texas Water Code, particularly Section 49.301 of that Code, together with all amendments and additions thereto, respectfully petition the City Council of the City of FORT WORTH, TEXAS (the "City"), for its written consent to the annexation by the District of the 13.745 acre tract of land described by metes and bounds in Exhibit A (the "Land"), which is attached hereto and incorporated herein for all purposes. In support of this petition, the undersigned would show the following: I. The District is a municipal utility district duly created under the laws of the State of Texas on January 12, 2017. The District was created and organized under the terms and provisions of Article XVI, Section 59, of the Constitution of Texas, and is governed by the provisions of Chapters 49 and 54, Texas Water Code. II. The Petitioner holds fee simple title to the Land, as indicated by the certificate of ownership provided by the Denton Appraisal District. The Petitioner represents that there are no lienholders on the Land. III. The Land is situated wholly within Denton County, Texas. No part of the Land is within the limits of any incorporated city, town or village, and no part of the Land is within the extraterritorial jurisdiction (as such term is-defined m Local Gic ment -- Code Section 42.001 et sec:, as amended) of any city, town or village except the City. All of the Land may properly be annexed into the District. IV. The general nature of the work to be done within the Land is the construction, acquisition, maintenance and operation of a waterworks and sanitary sewer system, a drainage and storm sewer system and road facilities. 665322(003) V. There is, for the following reasons, a necessity for the above-described work. The Land, which will be developed for commercial and/or residential purposes, is urban in nature, is within the growing environs of the City, is in close proximity to populous and developed sections of Denton, Tarrant, and Wise Counties, and within the immediate future will experience a substantial and sustained residential and commercial growth. There is not now available within the Land an adequate waterworks and sanitary sewer system, an adequate drainage system, nor road facilities, and it is not presently economically feasible for the Land to provide for such systems and facilities itself. Because the health and welfare of the present and future inhabitants of the Land and of lands adjacent thereto require the construction, acquisition, maintenance and operation of an adequate waterworks and sanitary sewer system, a drainage and storm sewer system, and road facilities, a public necessity exists for the annexation of the Land into the District, to provide for the purchase, construction, extension, improvement, maintenance and operation of such waterworks and sanitary sewer system, such drainage and storm sewer system, and such road facilities, so as to promote the purity and sanitary condition of the State's waters and the public health and welfare of the community. VI. The undersigned estimate, from such information as they have at this time, that the cost of extending the District's facilities to serve the Land is $685,000.00. VII. The Petitioner and the District agree and hereby covenant that if the requested consent to the annexation of the Land to the District is given, the Petitioner and the District will adopt and abide by the conditions set forth in the Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1, among the City, Lackland Holdings, LLC and the District, attached hereto as Exhibit B and incorporated herein for all purposes. WHEREFORE, the undersigned respectfully pray that this petition be heard and granted in all respects and that the City give its written consent to the annexation of the Land into the District. [EXECUTION PAGES FOLLOW] -2- 665322(003) VIN - RESPECTFULLY SUBMITTED on this day of w__ � —.—,2017. FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES A1 . 0 � ' .-j L- '* By. Ak Name: S�On C((o(--K e 4 Title:. ...Ores%,d e_(1)- ATTEST: (SEAL) 98"11yy''� 'd 4kY yV* By: .�. V f • 'w ill = �• a :a Name: K� ao: Title: G Cr ��. THE STATE OF TEXAS § COUNTY OF I § nn � This instrument was acknowled ed before me on this day of �SIAn P. , 2017, by Sharp,, Eb( Ke++ , as —P f�__A-- , andKtm6 U M as �-ruc� � of the Board of Directors of FAR NORTH FORT WORTH MUNICIPAL UTIL DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES,a political subdivision of the State of Texas,on behalf of said political subdivision. Notary Public, State Vex4a (NOTARY SEAL) IN°.. MICHELLE JOY BRYAN My Notary ID#128330527 Expires July 16,2018 -3- 665322 NORTHSTAR RANCH, LLC, a Texas limited liability company By: Name: Title: �ec V'-&4 THE STATE OF TEXAS § § COUNTY OF TAr rc..r k § This instrument was acknowledged before me on this day of une_ , 2017, by T--Aon Ter. SeGre of NORTHSTAR RANCH, LLC, a Texas limited liability company, on"behalf of said limited liability company. TINA MICHELLE LEWIS i•:��F+�Notary Public, State of Texas ��9;�••••j�+vim Comm. Expires 06-16-2021 Notary ID 125179689 Notary Public, State of Texas (NOT Attachments: Exhibit A: Description of the Land Exhibit B: Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 After recording, return to: Allen Boone Humphries Robinson LLP, 3200 Southwest Freeway, Suite 2600,Houston,Texas 77027, Attn: Yvonne Onak. -4- 665322 EXHIBIT A Description of 13.745 Acres of Land BEING a 13.745 acre tract of land in the M.Ashton Survey,Abstract Number 1(Denton County) Denton County,Texas,and being a portion of that certain tract of land (Tract 1)described in deed to Northstar Ranch, LLC., recorded in Instrument Number D217014069 of County Records, Tarrant County,Texas and Instrument Number 2017-7539 of Real Property Records, Denton County,Texas and being more particularly described by metes and bounds as follows: BEGINNING at the northeast corner of said Tract 1 being the southeast corner of that tract of land described by deed to Mary Lou Livengood recorded Volume 109, Page 448 of said Real Property Records and being in the west line of that tract of land described by deed to Sendera Ranch A2A Development, LLC recorded in Instrument Number 2014-61437 of said Real Property Records; THENCE South 00"06'11"West, 1574.05 feet with the east line of said Tract 1; THENCE South 87°56'55"West,397.34 feet,departing the said east line,to the approximate county line of Denton and Wise counties; THENCE North 01°12'54"East, 1560.72 feet,with said common line,to the north line of said Tract 1; THENCE North 89"54'51" East,with said north line,to the POINT OF BEGINNING and containing 13.745 acres, more or less. G:\JOB\LHL14003_700_Acres\Sur\Legal\LHL14001_mudlA.docx Page 1 of 1 June 20,2017 Basis of Beoring is deed for Northstor,LLC in recorded in Instrument Number D217140069 of M County Records, Tarrant County, Texas. IS U Vq N P Mary Lou Livengood. Etat �. 1 Vol. 109. Pg.448 P 400 800 R.P.R.D.C. T. S890 54'51 "E GRAPHIC SCALE N FEET 589"54'S1'E 1724.50' r "Integral parts of this document" 366. 82 1.Description - 1 Page 2. Exhibit - 1 Page ti CD (Paint Of. Beginning In In 0-% \ Ph��,��tInv ,�A J 13.745 Sendera Ranch A2A s, Acres Development, LLC Inst.# 2014-61437 R.P.R.D.C. T. x W � a Q •-- NORTHSTAR RANCH. LLC s -F `— (Tract 1 l �, —_-� Inst.# p217140069 C.R.T.C.T. z `yT T63�P4�w�4 Inst.# 2017-7539 R.P.R.D.C.T. 0 NS *56155u W . h�� Tarrant Co. "This document was prepared under 22 TAC 663.21. 397- 34' `e". (Sendero Ranch does not reflect the results of an on the ground survey.and is not to be used to convey or establish s 1; f>rgst.#D209069795 interests in reatpfoty except those rW* and ,1 \t `\ eE R. T.C. T. per merest: implied or estobished by the creo6on or reconfiguration of the boundary of the pofiticalN �\ subdivision for which it *oil prepared.,* ��' �� tla4 '• zp Sendero RvncCt { "Prelimirlory, this document'ohal not be �`� 1n3 F,# D recorded for any purpose and shall not C.R.jr.C. T. be u*ed or viewed or relied Jpon as o finali4rvey document" 22 TAC 663.18C ��y�-(�^`` r Todd �4, Bridges, RPLS 4940. 3 , `1��rr w Dote, 6!21/2017 -`r^ 4. ' Y Exhibit of 13.745 Acres Situated In the M. Ashton �,��� N P E LOTO NJ Survey. Abstract Nufriber 1 , , LAND SOLUTIONS Denton County. Texas f*-LV JMPA AY,KWT9 0 J013 t1 LHL14001 ----'TD- MWRAYYN 6Y: GADd CHECKED BY: TARIDGES DATE:6-211-206 PAGEiq t of t FORT AVORiYi TEM, Y" PHAA1�•610-610 !3- res w -o.q .. __. ___ _. _. as ___. __._ CITY SECRUAW EXHIBIT B cit NTRACT NO.,. AGREEM'NT CONCERNING CREATION AND OPERA'T'ION OF FAR NORTH FORT WORTII MUNICIPAL UTILITY DISTRICT NO. 1 STATE OF TEXAS § COUNTIES OF TARRANT,DENTON § AND WISE § l � This Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 (this " reemed ) is entered into by the City of Fort Worth, Texas, a home-rule municipal corporation situated in Tarrant, Denton, Johnson, Parker and Wise Counties, Texas (the "City"), acting by and through its duty authorized Assistant City Manager; Lackland Holdings, LLC, (" )wners"); and Far North Fort Worth Municipal Utility District No. 1, a municipal utility district created pursuant to Article XVI, Section 59, of the Texas Constitution,, Chapters 49 and 54 of the Texas Water Code, located within Tarrant; Denton and Wise Counties (the "District"), which District,after the District Confirmation Date,will become a party to this Agreement. ARTICLE I RECITALS A. Owner has represented to the City that Owner is the owner of approximately 741.99 acres in Tarrant, Denton and Wise Counties, Texas, as shown on xh' fid„ and described in Exhibit I3 attached to this Agreement(the"Deye�tirhe "). The Development lies entirely within the City's extraterritorial jurisdiction ("EV"). Owner intends the Development to be a master-planned community depicted for informational purposes only on the attached Exhibit A. B. On December 3, 2015, Owner, or its predecessor in title, petitioned the City to obtain the City's consent to the creation of the.District of 741.99 acres within the Development(the"Co rt sLcnt Pon" . C. On December 3, 2015, Owner, or its predecessor in title, petitioned the City requesting that certain commercial portions of the Development be annexed into the corporate limits of the City for the limited purpose of allowing the City to impose a sales and use tax. D. The purposes of this Agreement are to set out the mutually agreeable terms and conditions relating to the creation and operation of.the District, which are the provisions under which the City has adopted its resolution consenting to the creation of the District consistent with Section 42.042 of: the Local Government Code and Section 54.016 of the Water Code. It is an essential element of the granting of the City's consent to the creation of the District that, after the District Confirmation Date, the District will approve and execute this Agreement and become a Party to it. Far North 700 acre MUD Consent Agreement clean version 120115.doe E. On tat ,2015, pursuant t _ t sent Petition,the City Council of the City adopted Resolution No. °{ ns�ti to the creation of the District (the "Consent Resolution"),which Consent Resolution approved, and is subject to,the terms and conditions of this Agreement. 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 "Agr tent" means this Agreement Concerning Creation. and Operation of liar North Fort Worth Municipal Utility District No. 1. "Assign ' means a successor to Owner as defined in Section 1.4.10(b) of this Agreement. "A orney Gen_=='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 shalt include obligations issued to refiind outstanding Bonds, but shall not include reimbursement agreeanents entered into between the District and a developer of the Development or bond anticipation notes. '$ond 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. "CEA:Palk " ►Weans the City's "Policy for the Iustaflation of Community Facilities" as amended March 20, 2001 (M&C G-13181)and in effect on the Effective Date, and any amendments approved ailer the Effective Date. "City"ineans the City of Fort Worth,Texas, a home rule municipality located in Tarrant, Wise,Johnson,Parker and Denton Counties. "City attorney"means the City Attorney of the City. 2 "tgitty "ode"means the Code of the City of Fort Worth. "City Council"means the City Council of the City. "Citanx "means the City Manager of the City. "City Obiection' means an objection by the City to a Bond issue as defined in Section 5.10 of this Agreement. "City Review Fees" means: (a) the 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 Se etary"means the City Secretary of the City. "Consent Petition" means the petition dated December 3, 2015, submitted by Owner or its predecessor in title to the City requesting the City's consent to the creation of the District and to the Road Projects. _ "Consent Resolution" means the Resolution No._adopted . . _ S 2015,by the City Council that approves this Agreement and contains the City's consent to the creation of the District in accordance with the District Legislation, including, but not limited to, consent for holding a confirmation election and undertaking the Road Projects. "fit tr Ifo ' means a person or entity that constructs, alters or repairs Infrastructure required to serve the Development. "Development"means that certain 741.99-acre tract located in Tarrant, Denton and Wise Counties,Texas as shown on Exhibit A and described in Exhibit B. Upon annexation of the Far North MUD Road Tract by the District in accordance with Article IX, the Development shall mean the 741.99-acre tract shown on Exhibit to and described in Exhibits B. "Development Agmrnvnt" means the Development Agreement Between the City of Fort Worth, Texas and Lackland Holdings, LLC, which the City and Owners agree to reasonably negotiate and enter into within 30 days of the District Confirmation Date. "Planning and evelotiment Director" means the Director of the City's Planning and Development Department. "District'means Far North Fort Worth Municipal Utility District No. 1,to be renamed in accordance with Article X of this Agreement,created in the Development. 3 "District Confirmation Date"means the date on which the Board canvasses the results of the election held within the District confirming the creation of the District. "ItlzgMye Date"means the date this Agreement is executed. "ETJ"means the extraterritorial jurisdiction of a city as defined by the Local Government Code, as amended, with the City's ETJ being an unincorporated area presently extending five miles from the City's corporate limits, excluding other incorporated municipalities and their respective ETJs. "Finance Director'means the Director of the City's Finance Department. "Goveming Retrtrlations" means the Subdivision Regulations and all City ordinances, regulations,policies, manuals and other requirements relating to Infrastructure, including without limitation the design, location, consimction, operation and maintenance thereof, that are applicable within the City's corporate limits on the Effective 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 Effective Date,except any amendments from which the Development is exempt pursuant to Chapter 245 ofthe Local Government Code. "Far North MUD' means the proposed master-planned community containing approximately 741..99 acres that may include residential, commercial and recreational uses as generally depicted for informational purposes only on Exhibit A. "Infrastructure" means all water,wastewater, drainage, roadway and other inh-astructure improvements installed or constructed to serve the Development, whether located within or outside the Development. "Infrastructure lnsp2gj:ton 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 Goyetxunent Code"means the Texas Local Government Code,as amended. "Notice"means notice as defined in Section 14.01 of this Agreement. `�+ npf means Lacktand Holdings,LLC, and its successors and Assignees as permitted by this Agreement. "Party" means, individually, the City, Owner, or the District, their successors and their Assignees as permitted by this Agreement. "AUC"means the Public Utility Commission. 4 I F "Road Projects" means the construction, acquisition, improvement, maintenance, and operation of all paved roads and turnpikes and improvements in aid of such roads and turnpikes located within the District and shown on any final plat approved by the City's Plan Commission for the Development. j "Strafe 'c Podnershin A r Ment" means the Strategic Partnership Agreement Between the City of Fort Worth, Texas and the Far North Fort Worth Municipal Utility District No. 1. "Subdivision Regulations" means the City's Subdivision Ordinance No. 7234, the Plan Commission Rules and Regulations in effect on the Effective Date and the CFA Policy, and all amendments thereto and future versions of such regulations. "TCEO"means the Texas Commission on Environmental Quality or its successor state agency. "Utility A Mnient" means the Utility Agreement of Far North Fort Worth Municipal Utility District No. 1, relating to the provision of water and wastewater service to the Development and the construction, ownership, operation and maintenance of water and wastewater Infrastructure both inside and outside the Development, which the City and the District agree to reasonably negotiate and enter into per the terms of Section 4.01 of this Agreement. "Water Code"means the Texas Water Code. "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) the creation of the District over the Development; (b) the District undertaking the Road Projects;and, (c)the calling and holding of an election within the District to confirm the creation of the District. ARTICLE IV EXECUTION OF AGREEMENTS i 4.01 DocumgD(s To Be Executed. Owner covenants and agrees to cause the District to approve, execute and deliver this Agreement and the Utility Agreement to the City within thirty(30)days after the District Confirmation Date and to approve, execute and deliver the Strategic Partnership Agreement to the City within ninety(90) days after the District Confirmation Date j i 5 t 4.02 issuance of Bond . if the District fails to approve, execute and deliver to the City any one or more of the agreements identified in Section 4.01 of this Agreement within the time frames required by Section 4.01 and such failure is not cured within fifteen (15) days after Notice from the City to Owner and the District, such failure shall constitute a material breach of this Agreement by Owner and shall entitle the City to prevent the issuance of Bonds until the failure has been cured. 4.03 Reimbursement. If Owner fails to cause the District to approve, execute and deliver to the City any one or more of the agreements identified in Section 4.01 of this Agreement within the time frames required by Section 4.01 and such failure is not cured within fifteen (15) days after Notice from the City to Owner and the District, then Owner shall not, from and after the date of such failure, enter into any agreements with the District or seek reimbursement from the District for any expenses incurred in connection with the District or development of the Development until the failure has been cured. 4.04 Strategic Partqetshi AgLeepent. By this Agreement and the Consent Resolution, the City has approved the form of the Strategic Partnership Agreement; however, pursuant to Section 43.0751(e) of the Local Government Code, the City Council is authorized to adopt the Strategic Partnership Agreement only after such agreement has been adopted by the Board. 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. 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: (i) provide a water supply for the District for municipal uses, domestic uses and commercial purposes; (ii) collect,transport,process,dispose of and control all domestic, industrial,or communal wastes whether in fluid,solid,or composite state; (iii) gather,conduct,divert and control local storm water or other local harruful excesses of water in the District;and 6 i j I _ (iv) undertake the Road Projects as set forth in Section 5.04. (b) Payment of organization expenses, initial operation expenses, cost of issuance, interest during construction and capitalized interest and any other k expenses authorized by Section 49.155,Texas Water Code;and (c) Refunding of any outstanding Bonds of the District for debt service savings; provided, however, any such refunding Bonds otherwise satisfy the requirements of this Agreement. 5.03 .Limitations on Bonds. Owner and the District acknowledge that but for this Agreement, pursuant to Section 54.016 of the Water Code, the City's consent to inclusion of the Development 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 oad ProjaqLs. Notwithstanding the restrictions otherwise permitted by Section 54.016 of the Water Code(as referenced in Section 5.03 of this Agreement),the City acknowledges that the District has the power to undertake the Road Projects in accordance with the powers granted to the District by TCEQ at the time of creation and Chapters 49 and 54, Texas Water Code, provided the City consents by ordinance or resolution, and that such City consent was granted by the Consent Resolution, subject to the terms of this Agreement. The City requires that the Road Projects must include: providing access for the Development to US 287, construction of two lanes of the roadway from US 287 to Sendera Ranch Blvd. at the time Owners can obtain 600 building permits,and two additional lanes to the roadway fi•om US 287 to Sendera Ranch Blvd. at the time Owners can obtain 1,000 building permits (as depicted on Exhibit C). This Agreement hereby authorizes and further consents to the District undertaking the Road Projects serving the District and to the issuance by the District of Bonds for the Road Projects; however, the District may issue Bonds only after the District becomes a Party to this Agreement. 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 an amount approved by the TCEQ and the Office of the Attorney General and which can he supported by a debt service tax rate not to exceed $1.00 per $100 valuation (the "Bond Limit Amou t) unless specifically approved by the City Council. Owner and the District acknowledge that the Bond Limit Amount is sufficient to accomplish the purposes of the District and that Owner and the District have voluntarily agreed to the Bond Limit Amount in consideration for the City's consent to 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. 5.05 Bond R!Nuircments. 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 7 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; (b) Interest rate that does not exceed 2% above the highest average interest rate reported by the Daily Bond Buyer in its weekly"20 Bond Index" during the one month period immediately preceding the date that the notice of the sale of such Bonds is given; (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; (d) Any refunding Bonds of the District must provide for a minimum of three percent (3%)present value savings and, fiurther, must provide that the latest maturity of the refunding Bonds may not extend beyond the latest maturity of the refunded Bonds unless approved by the City Council; (e) No Bonds shall be issued having an issuance date more than fifteen (15) years after the District Confirmation 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 estimates of taxable assessed valuation within the District according to the appraisal districts of Tarrant, Denton and Wise Counties. 5.06 Cdtiter ic4t of§. 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 Ewnomic F i ilit . Before submission of an application for approval of issuance of Bonds to the TCEQ, PUC 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 issued within the then-current economic feasibility guidelines established by the TCEQ or PUC for districts issuing bonds for water, sewer,drainage or road facilities in Tarrant, Denton and Wise Counties. 5.08 Notic e ofBand Issues. At least thirty (30) days before submission of an application for approval of issuance of Bonds to the TCEQ, PUC or the Attorney General, whichever occurs first, the District shall deliver to the City Secretary, City 8 Manager, and. Finance Director the certification required by Section 5.07 and Notice # r containing: (a)the amount of Bonds being proposed for issuance;(b)a description of the projects to be funded and/or the Bonds to be refunded by such Bonds; and (c) the proposed debt service and District tax rate after issuance of the Bonds. If the District is t not required to obtain TCEQ or PUC 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 sixty (60) days prior to issuance of Bonds, except refunding Bonds,by the District. 5.09 Cmpliance wi-b Agmments. At least thirty(30) days before submission of an application for approval of issuance of Bonds to the TCEQ, PUC or the Attorney i General, whichever occurs first,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, the Utility Agreement or the Strategic Partnership Agreement. Material provisions include, but are not limited to, Sections 4.01, 5.01, 5.02, 5.04, 5.05, 5.06, and 6.01 and Articles VII and IX of this E Agreement E. 5.10 Bond Objections. The City shall have a period of thirty (30) days after receiving the last of the certifications and Notices required by Sections 5.08 and 5.09 of this Agreement within which to object to the Bonds. If the City fails to object to a proposed Bond issue within such 30-day period,the City shall be deemed to have waived all objections. The only basis for an objection by the City to a proposed Bond issue shall be that the District is in default of a material provision of the Consent Resolution, this Agreement, the Utility Agreement, or the Strategic Partnership Agreement. If the City objects to a proposed Bond issue (a "City. Objection"), such objection (a) shall be in writing; (b)shall be given to the District; (c) shall be signed by the City Manager or the City Manager's designee; and (d) shall specifically identify the material provision(s) of the Consent Resolution, this Agreement, the Utility Agreement or the Strategic Partnership Agreement for which the District is in default. It shall not be a basis for a City Objection that the City disagrees with the District's financial advisor as to the financial feasibility of the Bonds so long as the proposed Bonds have received all i necessary approvals from the TCEQ, PUC or Attorney General. In the event a City Objection is timely given to the District (as required by this section) with respect to a specific Bond application, the City and the District shall cooperate to resolve the City Objection within a reasonable time,and the Bond application to which the City Objection applies shall be delayed until the City Objection has been cured or waived. Unless otherwise cured by written agreement of the Parties, a City Objection shall be deemed cured if(x)the District files a petition seeking declaratory judgment in state district court; (y)thirty(30)days before filing the petition the District gives the City Attorney and City Manager Notice of, and waives any objections to the City's right to intervene in, such a declaratory judgment action;and(z)the district court determines that the District is not in default with respect to any material provision of the Consent Resolution,this Agreement, or the Strategic Partnership Agreement or, alternatively, finds that if such a default had previously occurred, the default has been cured. A City Objection may be waived by the City at any time. 9 5,11 (a . of L. t t cn,nt . 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 requests additional information regarding such issuance of the Bonds, the District shall promptly provide such information at no cost to the City. 5.12 Rei bu cat A ee e (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 District Confirmation 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 afiter the District Confirmation Date. 5.13 Usc of Cost Reimbursements r d D#k ' , If the District or Owner receives payment from any Darty connecting to any Infrastructure constructed by Owner or the District, pursuant to a "per acre" or "per MGD" ordinance or similar regulation, the District or Owner, as applicable,shall use such payments in the following order of priority: (a) Reimbursement for the construction or installation of Infrastructure; (b) Funding the construction or installation of Infrastructure;and (c) Purchasing and retiring any Bond after the tenth anniversary of its issuance. ARTICLE)j DESIGN,CONSTRUCTION,INSPECTION, DEDICATION,OPERATION ANDMAINTENANCE OF DISTRICT FACILITIES 6.01 Infrastruci. rte_ 5 r s. 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, if any, of the TCEQ and PUC. In the event of any conflict between the Governing Regulations and the rules 10 and regulations of the District, the Governing Regulations shall control unless otherwise agreed in writing by the Planning and Development Director. 6.02 Plan ReviewY Payment of r :s: n 41Pre-Construction Canferdnce. Construction of Infrastructure shall not commence until the plans and specifications have been reviewed and approved by the City for compliance with the Governing Regulations; a pre-construction conference has been held by the Contractor, the District's engineer and representatives of the City's Department of Engineering; and the applicable City Review Fees have been paid. 6.03 Cornmunity Facilities Agreements. Construction of Infrastructure shall not commence until Owner has executed a Communities Facilities Agreement in accordance with the CFA Policy. 6.04 HpWrts; Inspecjjgps. The District, or Owner on behalf of the District, shall employ a consulting engineer who will, during the construction of Infrastructure, submit to the Board, PIJC and TCEQ's executive director detailed written reports showing whether the Infrastructure is being constructed in accordance with plans and specifications and the contractor is complying with ail contract documents. City inspectors or third party inspectors pursuant to the City's third parry inspection process shall inspect and test the infrastructure. The District, or Owner on behalf of the District, shall pay all Infrastructure Inspection Fees.The City shall use its best efforts to cooperate with the District's consulting engineer to prepare inspection reports in a form acceptable to TCEQ and PUC. City, however, in no way guarantees that the Infrastructure will be constructed in a manner acceptable to TCEQ/PUC or that TCEQ/PUC will approve the issuance of Bonds. 6.05 Contracts with Contractors. If a Contractor is not an Owner, then the Owner shall incorporate the requirements of this Article VI into a written construction contract with the Contractor. All contracts with such non-Owner Contractors shall provide that the City is a third-party beneficiary of, and may enforce the contracts against,the Contractor. 6.06 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 Development as the City may determine necessary for the purpose of inspection and testing of Infrastructure. 6.07 Dedication of Wpftr and w e Lnfra4metury.,and Easme-n-Uto Ci The District will dedicate all water and wastewater Infrastructure constructed by or on behalf of the District both inside and outside the District, together with all easements for such Infrastructure, to the City upon final inspection and acceptance of such Infrastructure by the City in accordance with the Utility.Agreement. 6.08 Operation and Maintenance of Infrastructaire. The District shall cause all Infrastructure to be operated and maintained in accordance with the Governing 11 Regulations, except for water and wastewater infrastructure dedicated to the City pursuant to Section 6.07 and the Utility Agreement, which shall be operated and maintained by the City. Upon acceptance of Infrastructure dedicated to the City, the City will operate and maintain the Infrastructure. if repairs to District road facilities are needed as a result of repair or maintenance of water or wastewater Infrastructure by the City, the District shall perform or shall cause to be performed such repairs at no cost to the City. 6.09 As-Built Drawines. The District shall deliver mylar as-built drawings for all.Infrastructure to the City's Transportation and Public Works Department within thirty (30)days after final inspection. ARTICLE VII REPORTING REQUIREMEN'T'S 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 I3irector within thirty (30) days after the District adopts the rate; (b) send a copy of each annual audit 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 federal agency. AR'T'ICLE VIu 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 often (10) retail residential water connections outside the District with the Water Director's written approval. ARTICLE IX CONVERSION,CONSOLIDATION, OR DIVISION BY DISTRICT The District shall not (a)convert into another type of district; (b)consolidate with another district; (c) divide into two or more new districts; or (d) seek additional governmental powers beyond those granted to the District by the TCEQ in the creation process without prior City Council approval. 12 ARTICLE X NAME CHANGE If the District initiates proceedings to change the name of the District, it shall do so in accordance with Section 49.071 of the Water Code or other applicable law. ARTICLE XI ANNEXATION OF DISTRICT BY CITY i 11.01 General Terms. The Parties acknowledge and agree that the Development lies wholly within the City's ETI; is not bordered by another city,town, or village;and is not currently included in the City's annexation plan. The Parties further acknowledge that the creation of the District, and the City's consent thereto, are for purposes that include promoting the orderly development and extension of City services to the Development upon annexation. 11.02 Incoi orati+ott. In furtherance of the purposes of this Agreement, the District and Owner, on behalf of themselves and their respective successors and Assignees, covenant and agree to the extent allowed by law that, except upon written consent of the City Council,neither the District nor Owner will: (a) seek or support any effort to incorporate the Development or any part thereof; or(b) sign,join in, associate with,or direct to be signed any petition seeking to incorporate any of the Development or seeking to include any of the Development within the boundaries of any other incorporated entity. 11.03 Notice. Within thirty(30) days after the District Confirmation Date, the District shall file in the real property records of Tarrant County: (a) a notice in the form required by Section 49,452 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 District subject to the limitations set forth in Section 11.05, 11.04 Annexatign of Portion of Development, Owner and the District agree to l cooperate with and assist the City in annexing one or more areas in the manner prescribed by law which does not result in the dissolution of the District, each of which may not exceed 525 feet in width at its widest point or such other width limitation subsequently imposed by law, as reasonably necessary for the City to connect areas to the City that are outside the District and that the City intends to annex. Notwithstanding the zoning designation approved for the annexed area, such area can be developed and used in accordance with the Development Agreement. 11.05 .Full Purpose Annexation. The City will not annex the Development for full purposes any earlier than the first to occur of(a) twenty(20)years after the Effective Date; (b)the dissolution of the District(other than as a result of annexation by the City); or(c)termination of the Development Agreement. i 13 11.06 Limited PuMM Annexati.U. "I71e Patties agree that the City shall have the right to annex those portions of the Development that are intended for retail development for the sole and limited purpose for the City to impose its sales and use tax within the boundaries of such retail areas, pursuant to Section 43.0751 of the Local Government Code. The terms and conditions upon which such limited purpose annexations may occur shall be set fnrth in the Strategic Partnership Agreement. ARTICLE XII TERM OF AGREEMENT 71iis Agreement shall be effective from the Effective Date and shall continue in effect until the District is annexed for frill purposes and dissolved by the City or until terminated in writing by mutual agreement of the City and the District; provided, however, if the creation of the District has not been confirmed at an election conducted on or before November 15, 2017, this Agreement may be terminated by the City by providing Notice to Owner. ARTICLE XIII BREACH,NOTICE AND REMEDIES 13.01 Notification of Breaeh. If either Party commiLS a breach of this Agreement, the non-breaching Patty shall give Notice to the breaching Party that describes the breach in reasonable detail. 13.02 Cure of Breach. The breaching Parry shall commence curing such breach within fourteen.(I4)calendar days atter the time the breaching Party receives such Notice and 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 14-day period, the non-breaching Party shall not bring any action so long as the breaching Patty 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. 13.03 Remedies for�3tch, If the breaching Patty 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 tenninate 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 XII of this Agreement). It is understood and agreed that 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 raider or related to this Agreement. 14 13.04 Governmental Powers, Waiver of lmmgu:nj. 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 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. ARTICLE XIV ADDITIONAL PROVISIONS 14.01 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 Parties as provided in this section. To o e City: l City of Fort Worth,Texas 1000 Throckmorton Street Fort Worth,Texas 76102 Attn: City Secretary FAX: 817-392-6196 R City of Fort Worth,Texas 1000 Throckmorton Street Fort Worth,Texas 76102 Attn: City Manager FAX: 817-392-6134 { 15 City of Fort Worth,Texas 1000 Throckmorton Street Fort Worth,Texas 76102 Attn: Planning and Development Director FAX: 817-392-8359 City of Fort Worth,Texas 1.000 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:Water Director FAX'. 817-392-8195 City of Fort Worth,Texas 1000 Throckmorton Street Fort Worth,Texas 76102 Attn: Transportation/Public Works Director FAX: 817-871-7895 To the District: Far North Fort Worth Municipal Utility District No. 1 c/o: Don Allen 3045 Lackland Road Font Worth,'Fexas 76116 FAX: 817-732-2291 "'o ww: Lackland Holdings 3045 Lackland Road Fort Worth,Texas 76116 16 14.02 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. 14.03 Cijy Coscat and Approval. In any provision of this Agreement that provides for the consent or approval of the City staff or City Council, such consent or approval may be withheld or conditioned by the staff or City Council at its sole discretion,except as provided in Section 5.10. 14.04 GGoverning Law and_Venue. THIS AGREEMENT MUST BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS,AS THEY APPLY TO CONTRACTS PERFORMED WITHIN THE STATE OF TEXAS AND WITHOUT REGARD TO ANY CHOICE OF LAW RULES OR PRINCIPLES TO THE CONTRARY. THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT IS PERFORMABLE IN TARRANT,DENTON AND WISE COUNTIES,TEXAS AND HEREBY SUBMIT TO THE JURISDICTION OF THE COURTS OF TARRANT,DENTON AND WISE COUNTIES,TEXAS,AND HEREBY AGREE THAT ANY SUCH COURTS SHALL BE A PROPER FORUM FOR THE DETERMINATION OF ANY DISPUTE ARISING HEREUNDER. 14.05 Authority to Execute. The City warrants that this Agreement has been approved by the City Council 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 City has been authorized to do so. Each Owner warrants that the execution of this Agreement is duly authorized in conformity with the articles of incorporation, bylaws, partnership agreement, or other applicable organizational documents of each Owner and that the individual executing this Agreement on behalf of each Owner 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. 14.06 Seyera ilk. The provisions of this Agreement are severable. If 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 ftom 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 17 f 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 severed provision which new provision shall,to the extent possible, accomplish the intent of the Parties as evidenced by the severed provision. 14.07 Chango W State or Fetlemal Laws. If any state or federal law changes so as to make it impossible for the City or the District to perform its obligations tinder 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. 14.08 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. 14.09 Captions. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of the Agreement. 14.10 Assigmrt ent. (a) Neither the District nor the City may assign this Agreement without the written consent of the other. Parties. (b) Owner has the right,from time to time,to assign this Agreement,in whole or in part, and including any obligation, right, title, or interest of Owner under this Agreement, to the District (after the District Confirmation .Date) and to any person or entity (an " si nee") without the consent of the City, provided that the following conditions are satisfied: (t) if not the District,Assignee is a successor owner of all or any part of the Development or is a. lender to a successor owner of all or any part of the Development; (2) if not the District, Assignee has a contractual right to be reimbursed for water, sewer,or drainage improvements and/or the Road Projects From District Bonds(or has a lien or other security interest in such reimbursements); (3) the assignment is in writing executed by Owner and Assignee in the form of assignment attached as Exhibit E; (4) Assignee expressly assumes in the assignment any assigned obligations and expressly agrees in the assignment to observe, perform, and be bound by this Agreement to the extent this Agreement relates to the obligations, rights,titles,or interests assigned; and (5) a copy of the executed assignment is provided to all Parties within fifteen (15) days after execution. Provided the foregoing conditions are satisfied, from and after the date(lie assignment is executed by Owner and Assignee, the City agrees to look solely to Assignee for the performance of all obligations assigned to Assignee and agrees that Owner shall be released from performing the assigned obligations and from any liability that results from the Assignee's failure to perform the assigned obligations. No assignment by Owner shall release Owner from any liability that resulted from an act or omission by Owner that occurred prior to the effective date of the assignment. Owner shall maintain written records of all assignments made by Owner (including, for each 18 i Assignee, the Notice information required by this Agreement, and including a copy of each executed assignment) and, upon written request from any Party or Assignee, shall provide a copy of such records to the requesting person or entity, It is specifically intended that this Agreement, and all terms, conditions and covenants herein, shall survive a transfer, conveyance, or assignment occasioned by the exercise of foreclosure of lien rights by a creditor or a Party, whether judicial or non judicial. This Agreement shall be binding upon and insure to the benefit of the Patties and their respective successors and Assignees. Notwithstanding the foregoing, however, Owner shall not have the right to assign this Agreement,or any right,title,or interest of Owner under this Agreement, until the District has become a Party. 14.11 Amendment. This Agreement may be amended only with the written consent of all Parties and with approval of the governing bodies of the City and the District. 14.12 InLeMrctation. 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 he 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 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. 14.13 No `third Party>3eneficiM. This Agreement is solely for the benefit of the Parties, and neither the City, the District nor Owner intends by any provision of this Agreement to create any rights in any third-party beneficiaries or to confer any benefit upon or enforceable rights under this Agreement or otherwise upon anyone other than the City,the District and Owner. 14.14 Reimbursement for City's Professional Fees. Owner will reimburse the City for reasonable attorneys fees incurred by the City in connection with negotiation and preparation of this Agreement, the Development Agreement, the Strategic Partnership Agreement, agreements concerning the provision of water and wastewater service to the Development, and any other documents executed by Owner, the District, and the City in connection with the Development up to a maximum amount of $50,000. Owner's obligation is limited to the actual, out-of-pocket costs and expenses paid to or owed to third-parties for services rendered prior to the approval of this Agreement by the City Council. Owner shall reimburse the City for such fees within thirty (30) days after this Agreement has been executed by the City and Owner and'the City has delivered to Owner an invoice for such fees setting forth in reasonable detail a description of the work performed, including identification of the attorney who performed the work, the date on which the work was performed,and the time spent on each date. 19 14.15 Inggrgoiation of Exhibits by,9eference. 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 Far North.Font Wath MUD No. 1 Exhibit B Legal Description of the Development Exhibit C Map of.Road Projects Exhibit D Annexation Notice Exhibit E Assignment and Assumption Agreement 14.16 Conspicuous PMyWons. The City, the District, and Owner 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. 14.17 Coutrter art Originals. This Agreement may be executed in multiple counterparts,each of which shall be deemed to be an original. IN WITNESS WHEREOF, each Party has caused this Agreement to be executed by its undersigned duly authorized representative in multiple copies on the date or dates indicated below. ATTEST: -f`' CITY OF FORT WORTH By2AH"44A- ar , `'y Secretary Fernando Costa,Assistant City Manager Date . . APPROVED AS TO FORM AN LEGALITY: � � FO � Assistant City Attorney LACKLAND HOLDINGS,LLC By: Its: _ IAfW r , _�.. Date: . 20 I q� E 3 E 5 P STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me,on thel jdey of MI&rCL 201),by �erdgt vio e- of the City of Fort Worth,Texas on behalf of said city, i f.SEAL] No Publid State of Texas Printed y Commission Expires: t V April 17 20?9 STATE OF TEXAS § COUNTY OF ' an A4 § This instrument was acknowledged befiare me,on the'&,day of . .� 201&by Lackland Holdings, LLC,by J>n C= A110% r Notary Public,Stateof-rem [SEAL] Printed Name: jYIi6A6^ My Commission)moues:^1 11 oil ,,, : M{A4AM►tEG{! lot tot � ctObw 4$ 2(114 21 Pursuant to Article IV hereof and following the District Confirmation Date, the District has executed the Agreement. FAIL NORTH FORT WORTH MUNICIPAL U'T'ILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES isi"dent!4, xar By: �. Vitt,Pof Directors Date: [{ T STATE OF TEXAS COUNTY OF TARRANT § This instrument was # lged before me, on the day of 2017, by + �kNje�t, Board of Directors of Far North F&t Worth Municipal U ' j District No.1 of Tarrant and Wise Counties,on behalf of said district, r pt!' 7e• M CHELLE JOY BRYAN My Ndwy ID 01203052y / ,*14.2413 1 ` r i Notary Public,S at of Tex [SEAL] Printed Name: l At llG �_� My Commission Expires: L- Exhibits A and B P e t v All � �� � �' I �� IsP��J �a a •}y � ,!�1111�� .: �� +• � I if ,! a aaJ3al J �d iiFaJljlE`�I Fit ��Idl�����[i?6 �7lI! 1Jl��iJ11J7�1 ri AWWWIWI I ifs• �� ���� � •'�• d� "eta �.t�,�_ L.a I Of If i i y 4 L Exhibits A and B `1jtJI� ) : i 1� r i r t� ililf Iit !t! fir' t t►i I�F Iii EJ+� Bek i � :�� '��� ss. ��t`;� � ! .� 11 �j l +, t! ( 77711111]t +j { � � �. k•„ �VVY 91 D Eti ' tr 1� z p Y y�`d y` n•i� •j r � -( + <.- •4. oma"' , Z F- { 1 i w1` ) ��: I�[k{ Road Piojocts 'k R ILI to s� ON z�K'�•' L 2�;w �� S �i nUn � t v;. ;tp 3 R 1m fi ol yy 4 a T5 ,5v am C1 ¢ � e 1'A mw i'7 " �' r, v >v p " ?T p l flIll.• �tiy't r � #.. � ,; " s � r; Exhibit D STATE OF TEXAS COUNTY OF TARRANT NOTICE CONCERNING ANNEXATION AND SERVICES The real property described in Exhibit A attached hereto and incorporated herein is located in Far North Fort Worth Municipal Utility 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. The City of.Fort Worth may annex the District for fill purposes upon the earliest to occur of (1) Dissolution of the District;or (2) .2030 For additional information concerning potential annexation of the District, contact the City of Fort Worth Planning and Development Director. FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICI'NO. I or. Norco ptirded.. 26 s STATE OF TEXAS § § COUNTY OF_ ._ _.._. _. § This instrument was acknowledged before me,on the_day of 20___, by President, Board of Directors of on behalf of said district. Notary Public,State of Texas [SEAL] Printed Name: My Commission Expires: After recording,return to: Planning and Development Director City of Fort Worth 1000 Throckmorton Fort Worth,TX.76102 27 Exhibit A (Notice) 28 Exhibit F ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment') is made and entered into as of the day of. , between a (.�Axsiattot,� and , a ("Assi (Assignor and Assignee are hereinafter sometimes collectively referred to as the"Parties"and singularly as a"Party'). 1 RECITALS: i A. Assignor is the owner of the rights of the Owner under that certain "Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1" (City Secretary Contract No. _ --_...a M & C - } (the "A q a ')effective as of among , a as"Owner",the City of Fort Worth, Texas, as the City, and the Far North Fort Worth Municipal Utility District No. 1,as the District, relating to the creation and operation of the District,to the extent that the Agreement covers, affects, and relates to the lands described on Exhibit A attached to and made a part hereof of this j Assignment for all purposes(the"Tr„asferred Premises"). B. Assignor desires to assign certain of its rights under the Agreement as it relates to the Transferred Premises to Assignee, and Assignee desires to acquire such rights, on and subject to the terms and conditions of this Assignment. NOW,THF,REFORE, in consideration of the premises,the mutual covenants and obligations set forth herein, and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the Parties hereby agree and act as follows: 1. edair pefined Terms. Unless indicated otherwise herein, capitalized terms in this Assignment shall have the same respective meanings as are ascribed to them in the Agreement. 2. Assignment. Subject to all of the terms and conditions of this Assignment, Assignor hereby assigns all [or describe specifically assigned rights if partial] of its rights under the Agreement, insofar as the Agreement covers, affects, and relates to the Transferred Premises. 3. Assumption. Assignee hereby assumes all obligations of Assignor and any liability that may result from acts or omissions by Assignee under the Agreement as it relates to the Transferred Premises that may arise or accrue from and after the effective date of this Assignment. This Assignment does not release Assignor from any liability 29 that resulted from an act or omission by Assignor that occurred prior to the effective date of this Assignment unless the City approves the release in writing. 4. Goyernine Law. TYIIS ASSIGNMENT MUST BE CONSTRUCb AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS,AS THEY APPLY TO CONTRAC'T'S PERFORMED WITHIN 'rim. STATE OF TEXAS AND WITHOUT RE,CARD TO ANY CHOICE OF LAW RULES OR PRINCIPLES TO THE CONTRARY. 5. Countergart/Facsimiie Execution, This Assignment has been prepared in multiple counterparts,each of which shall constitute an original hereof, and the execution of any one of such counterparts by any signatory shall have the same force and effect and shall be binding upon such signatory to the same extent as if the same counterpart were executed by all of the signatories. Facsimile copies of signatures may be appended hereto with the same force and effect as legally delivered original signatures. 6. Notice _+ !jX. A copy of this Assignment shall be provided to the City within fifteen(15)days after execution. 7. Sinding Effect. This Assignment shall be binding upon and shall inure to the benefit of Assignor and Assignees and their respective heirs,personal representatives, successors, and assigns. EXECUTED as of the day and year first above written. ASSIGNOR: C 1 Printed name: Title: .~..��._ ASSIGNEE: ( i By:__ Printed name: 30 i STATE OF TEXAS § COUNTY OF § SWORN TO AND SUBSCRIBED before me on the day of 20_,by Notary Public,State of Texas STATE OF TEXAS § COUNTY OF § SWORN TO AND SUBSCRIBED before me on the day of 20___,by Notary Public,State of Texas [Add Acknowledgments] 31 Exhibit A (Trans&rred Premises) CERTIFICATE THE STATE OF TEXAS § COUNTIES OF TARRANT AND WISE § I, the undersigned Secretary of the Board of Directors of FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES, do hereby certify that the attached and foregoing is a true and correct copy of the Petition For Consent To Annex Land Into FAR NORTH FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 1 OF TARRANT AND WISE COUNTIES that was filed with the Board of Directors of the District on this 27th day of June, 2017. WITNESS MY HAND AND SEAL OF SAID DISTRICT on this 27th day of June, 2017. Dift ��,� `I•• ' : FAR NORTH FORT WORTH MUD NO. 1 OF �J;�• +••; TARRANT AND WISE COUNTIES Se etary, of Directors (SEAL) 665322 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved As Amended on 8/15/2017 - Resolution 4829-08-2017 DATE: Tuesday, August 15, 2017 REFERENCE NO.: **L-16059 LOG NAME: 0665030 FAR NORTH FW MUD #1 ANNEXATION AND AGREEMENTS SUBJECT: Adopt Resolution Consenting to the Addition of 13.745 Acres of Land to Far North Fort Worth Municipal Utility District No. 1 and Authorize Execution of Utility and Infrastructure Agreement, Development Agreement and First Amendment to Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 (ADJACENT to COUNCIL DISTRICT 7) RECOMMENDATION: It is recommended that the City Council: 1. Adopt the attached resolution consenting to annexation of 13.745 acres of land by Far North Fort Worth Municipal Utility District No. 1; and 2. Authorize the City Manager or a designee to execute the following agreements among the City of Fort Worth, Northstar Ranch, LLC, and Far North Fort Worth Municipal Utility District No. 1 and take any actions to carry out such Agreements: Development Agreement; Utility and Infrastructure Agreement; and First Amendment to Agreement Concerning Creation and Operation of Far North Worth Municipal Utility District No. 1. DISCUSSION: On December 15, 2015, the City Council adopted Resolution No. 4554-12-2015 granting consent to creation of a 733.648-acre municipal utility district to be known as Far North Fort Worth Municipal Utility District No. 1 of Tarrant and Wise Counties (District). The City Council with City Secretary Contract No. 47559 also authorized execution of Agreement Concerning Creation and Operation of Far North Fort Worth Municipal Utility District No. 1 among the City of Fort Worth and Lackland Holdings, LLC, (Creation and Operation Agreement). The Creation and Operation Agreement required the District to enter into a Utility Agreement and the owner of land within the District to enter into a Development Agreement with the City after creation and confirmation of the District. During the process for creation of the District by the Texas Commission on Environmental Quality, it was determined that Denton County records reflect that approximately 13.745 acres of land proposed to be included in the District were not in Denton County. The City Council adopted Resolution No. 4652-06-2916 on June 28, 2016 revising Resolution No. 4554-12-2015 to adjust the boundaries of the District by deleting the 13.745 acres (Exhibit A). The City Council also approved an amendment to the Creation and Operation Agreement to reflect the reduction of the land area in the District. Such amendment has not been finalized and signed by the parties and the District is now requesting to re-annex the 13.745 acre tract. The District was created by order of the Texas Commission on Environmental Quality dated January 20, 2017 encompassing 719.903 acres. The adoption of the attached resolution will serve as the City's consent to the annexation of the aforementioned 13.745-acre tract by the District, resulting in a 733.648- Logname: 0665030 FAR NORTH FW MUD #1 ANNEXATION AND AGREEMENTS Page I of 3 acre district as originally consented to by the City Council. The District was granted road powers by the Texas Legislature by House Bill 4331 on May 20, 2017 to implement the roadway construction as agreed upon in the Utility and Infrastructure Agreement. Owner and District shall complete two lanes of Northstar Parkway from U.S. 81/287 to Sendera Ranch Boulevard before the City issues a building permit for the 600th single-family residence within the development. Owner and District shall complete the remaining two lanes of Northstar Parkway from US 18/287 to Sendera Ranch Boulevard before the City issues a building permit for the 1,000th single-family residence within the development. If the phased construction of the property significantly deviates from the approved preliminary plat, then the Transportation and Public Works Department may require the Owner to update the Traffic Impact Analysis and may require additional mitigation and/or amendment to the construction deadlines to accommodate the additional traffic impacts caused by the proposed deviations. In accordance with the Creation and Operation Agreement, the District and Northstar Ranch LLC, an affiliate of Lackland Holdings, LLC, and the current owner of all land within the District, have negotiated the Utility and Infrastructure Agreement and the Development Agreement with the City. The Development Agreement provides standards for development of the land within the District, as authorized by Section 212.172 of the Texas Local Government Code. The Utility and Infrastructure Agreement sets out utility fees and standards for design and construction of water, sewer and drainage infrastructure and roads to serve land within the District. The First Amendment to the Creation and Operation Agreement corrects the acreage and name of the District and extends certain dates for issuance of bonds by the District and annexation by the City of land within the District, in order to be consistent with the Development Agreement. As a condition to consenting to the annexation of additional property and requested amendments to the Creation and Operation Agreement, the current owner and the District agreed that the District shall levy a total ad valorem tax rate (including its debt service tax rate and maintenance and operation tax rate) of no less than $1.00 per $100.00 assessed valuation through the life of the District. This requirement will be reflected in the amended Creation and Operation Agreement of the District as well as the Development and Utility Agreements as applicable. The City will receive the revenue generated from the tax surplus upon annexation. The Strategic Partnership Agreement for limited-purpose annexation will come forward for the City Council's consideration once the statutorily required public hearings have been scheduled. The property is located in the City's extraterritorial jurisdiction adjacent to COUNCIL DISTRICT 7. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of the resolution and Agreements will have no immediate material effect on City funds. Any effect on expenditures and revenues will be budgeted in future fiscal years. FUND IDENTIFIERS (FIDs): TO Fundi Department ccoun Project Program ctivity Budget Reference # moun ID ID Year (ChartPield 2) FROM __ j Fund' Department ccoun Project Program ctivity Budget Reference # moun ID ID Year tfield 2) CERTIFICATIONS: Submitted for City Manager's Office by: Fernando Costa (6122) Logname: 0665030 FAR NORTH FW MUD 41 ANNEXATION AND AGREEMENTS Page 2 of 3 Originating Department Head: Randle Harwood (6101) Additional Information Contact: Mary Elliott (7844) Logname: 0665030 FAR NORTH FW MUD 41 ANNEXATION AND AGREEMENTS Page 3 of 3 Far North Fort Worth Municipal Utility District No. 1 Exhibit A Addition of Approx. 13.745 Acres NewFairvieuv 4 e urora afi, Rhome y� "r` cw� Denton N Newark , EAGLE A y Ha S1 el ti Tarrant w I z J t' 0l i call w4ky, w w t87 , C p ] r r .T o CANYON 7,` T x RANCHO CANYON � '�� �, z' O L7 Far North FW MUD No. 1tO . r .*. 1 .q . �.. .. .M rJ { ` r �s y ��� s � x R "•"r3. 9 1 FORT WORTH. L--�County Boundaries -Municinal Litility Distr' N Fort Worth ETJ O Far North Fort WorthL Planning&Development Department MUD No.1 750 1,500 3,000 Feet 07191201' I t I t I -• COPYRIGHT LA CRY IS FORT NORTH UNAUTHORIZED GRAPHICAL ROUEN ISA VIOLATION OF Adjacent City APPLICABLE CAWS.THIS DATA IS TO ENBE USED FOR A PRODUCED REPRESENTATION ONLY Subject Property THEACCURACY IS REGIS BE TAKEN/USED AS OATHPRODUCEDFOR ENGINEERING FO 1 p y 1:24.D00 PURPOSES OR BYA REGISTERED PROFESSIONAL LAND SURVEYOR.THE CRY OF FORT WORTH _ -(approx.13.745 acres) ASSUMES NO RESPONSIBILITY FOR THE ACCURACY OF SAID DATA.