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HomeMy WebLinkAboutContract 36198 (2) . Ci i Y SECRETARv�I� CONTRACT NO. AGREEMENT CONCERNING CREATION AND OPERATION OF MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF PARKER COUNTY STATE OF TEXAS § COUNTY OF PARKER § This Agreement Concerning Creation and Operation of MorningStar Ranch Municipal Utility District No. 1 of Parker County (this "Agreement") is entered into by the City of Fort Worth, Texas, a home-rule municipal corporation situated in Tarrant, Denton, and Wise Counties, Texas (the "City"); WYA The Ranch at Mary's Creek, Ltd., a Texas limited partnership ("Owner"); and MorningStar Ranch Municipal Utility District No. 1 of Parker County, a municipal utility district to be created by the Texas Commission on Environmental Quality (the "TCEQ"), or the Texas Legislature, pursuant to Article XVI, Section 59, of the Texas Constitution and Chapters 49 and 54 of the Texas Water Code (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 380.316 acres in Parker County, Texas, as shown on Exhibit A and described in Exhibit B attached to this Agreement (the "Property"). The Property lies entirely within the City's extraterritorial jurisdiction ("ETJ"). B. Owner intends to submit a petition to the TCEQ for creation of a municipal utility district encompassing the Property. C. Owner intends to develop the Property as a mixed-use master-planned community to be known as "MorningStar Ranch", together with approximately 356.829 acres contiguous to the Property over which Owner intends to create MorningStar Ranch Municipal Utility District No. 2, and which is subject to separate agreements between Owner and the City (the "District Two Property"). D. Owner has submitted a petition to the City (the "Consent Petition") for consent to creation of a municipal utility district encompassing the Property(the "District"). E. On December 4, 2007, pursuant to the Consent Petition, the City Council of the City adopted Resolution No. 3560-12-2007 consenting to the creation of the District encompassing the Property by the TCEQ or, in the alternative, by the Texas Legislature and consenting to the District obtaining road powers by the action of the Texas Legislature or the TCEQ (the "Consent Resolution"), which Consent Resolution approved, and is sub-ject-to the. terms and conditions of this Agreement. ,l �,-,79 ARA��� 01 -31-08 A08 09�yjj, H, LI'1\7 MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 1 0163 91.00010:1041745.013 F. Owner has petitioned.the City requesting that certain commercial portions of the Property be annexed into the corporate limits of the City for the limited purpose of allowing the City to impose a sales and use tax.- G. The purposes of this Agreement are to set out the mutually agreeable terms and conditions relating to the creation and operation of the District. 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 the 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 "Agreement" means this Agreement Concerning Creation and Operation of MorningStar Ranch Municipal Utility District No. 1 of Parker County. "Assi nee" means a successor to Owner as defined in Section 13.10(b) of this Agreement. "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. "CFA Policy" means the City's "Policy for the Installation of Community Facilities" as amended March 20, 2001 (M & C G-13181) and as further amended from time to time as of the Filing Date, except any amendments from which the Property is exempt pursuant to Chapter 245 of the Local Government Code. "City" means the City of Fort Worth, Texas, a home rule municipality located in Tarrant, Wise, and Denton Counties. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 2 016391.00010:1041745.013 "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 Objection" means an objection by the City to a Bond issue as defined in Section 5.10 of this Agreement. "City Review Fees" means: (i) 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 (ii) 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 Petition" means the petition submitted by Owner or its predecessor in title to the City requesting the City's consent to the creation of the District. "Consent Resolution" means Resolution No. 3560-12-2007 adopted December 4, 2007, by the City Council approving this Agreement and containing the City's consent to the creation of the District. "Contractor" means a person or entity that constructs, alters or repairs Infrastructure required to serve the Property. "Development Agreement" means the Development Agreement for MomingStar Ranch governing the Property and the District Two Property approved by the City Council on December 4, 2007 (City Secretary Contract No. 36202, M & C-22562). "Development Director" means the Director of the City's Planning and Development Department. "District"means MorningStar Ranch Municipal Utility District No. 1 of Parker County. 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. "District Two Property" means approximately 356.829 acres in Parker County, Texas, contiguous to the Property, consisting of a 176.610-acre tract and a 180.219-acre tract, which are owned by Owner and proposed for inclusion in MorningStar Ranch Municipal Utility District No. 2 of Tarrant County. "Effective Date" means the date this Agreement is fully executed by the City and Owner. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 3 016391.00010:1041745.013 "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 24, 2006, the date on which the application for approval of preliminary plat PP-06-039 (which was approved by the City's Plan Commission on August 23, 2006) was submitted to the City. If PP-06-039 expires, "Filing Date" shall be deemed to be the same date as the Effective Date of the Development Agreement, subject to progress made toward completion of the Project. For purposes of this section, "Project" means the development of the Property in accordance with this Agreement. If no progress is made toward completion of the Project by January 29, 2013, 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 29, 2013. For purposes of this section, "progress"includes any one of the following: (a) an application for a final plat or plan is submitted to a regulatory agency, including without limitation the City; (b) a good-faith attempt is made to file with a regulatory agency, including without limitation the City, an application for a permit necessary to begin or continue towards completion of the Project; (c) costs have been incurred for developing the Project including, without limitation, costs associated with roadway, utility and other infrastructure facilities designed to serve, in whole or in part (but exclusive of land acquisition) in the aggregate amount of five percent of the most recent appraised market value of the Property; (d) fiscal security is posted with a regulatory agency, including without limitation the City, to ensure performance of an obligation required by such regulatory agency; or (e) utility connection fees or impact fees for the Project have been paid to a regulatory agency,including without limitation the City. "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 without limitation the design, location, construction, 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 Property is exempt pursuant to Chapter 245 of the local Government Code. "Groundwater System" means irrigation wells, drinking water wells, storage ponds, tanks,pump stations,distribution lines and meters designed and constructed to serve the Property with groundwater. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 4 016391.00010:1041745.013 "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, excluding the Groundwater System. 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 WYA The Ranch at Mary's Creek, Ltd., a Texas limited partnership, 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. "Property" means that certain 380.316-acre tract located in Parker County, Texas as shown on Exhibit A and described in Exhibit B. "Strategic Partnership Agreement" means the Strategic Partnership Agreement Between the City of Fort Worth, Texas and MorningStar Ranch Municipal Utility District No. 1 of Parker County attached hereto as Exhibit C. "Subdivision Regulations" means the City's Subdivision Ordinance No. 7234 and Plan Commission Rules and Regulations in effect on the Filing Date and including all amendments to the foregoing regulations that are adopted after the Filing Date, except any amendments from which the Property is exempt pursuant to Chapter 245 of the Local Government Code. "TCEO"` means the Texas Commission on Environmental Quality or its successor state agency. "Utility Agreement" means the Utility Agreement for MorningStar Ranch approved by the City Council on December 4, 2007 (City Secretary No. 36195, M & C-22562)relating to the provision of water -and wastewater service and the construction, ownership, operation and maintenance of water and wastewater infrastructure for the Property and the District Two Property. "Water Code"means the Texas Water Code. "Water Director"means the Director of the City's Water Department. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation. Page 5 016391.00010:1041745.013 ARTICLE III CITY CONSENTS In accordance with the terms of this Agreement, the City consents to (a) the creation of the District encompassing the Property by the TCEQ or the Texas Legislature consistent with the terms of this Agreement; (b) the District obtaining road powers by action of the TCEQ or the Texas Legislature; and (c)the calling and holding of an election within the District to confirm the creation of the District. ARTICLE IV EXECUTION OF AGREEMENTS 4.01 Documents 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. 4.02 Issuance of Bonds. 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 Property until the failure has been cured. 4.04 Strategic Partnership Agreement. By approval of this Agreement, 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 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: MomingStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 6 016391.00010:1041745.013 (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 harmful excesses of water in the District; (iv) construct, acquire, improve, maintain and operate macadamized, graveled, or paved roads and turnpikes and improvements in aid of such roads and turnpikes (subject to approval of road powers by action of the Texas Legislature or the TCEQ); (b) Establishment, operation, maintenance and construction of facilities for the provision of police, fire-fighting and other emergency services within the District; (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; (d) Payment of organization expenses, initial operation expenses, cost of issuance, interest during construction and capitalized interest; and (e) 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. 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 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 Bond Limit Amount. In consideration for the City's consent to the issuance of bonds for road projects pursuant to Section 5.02(a)(iv), the District agrees that the total amount of Bonds issued by the District for all purposes (excluding refunding Bonds) shall not exceed $60,000,000, less the amount of funds expended by the District pursuant to Sections 4.03(a), (b) and (c) of the Strategic Partnership Agreement for any of the authorized purposes listed in Section 5.02 (the "Bond Limit Amount") 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-t B -- Limit Amount in consideration for the City's consent to the issuance of bonds for roads. DistAft MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 7 016391.00010:1041745.013 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 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; (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 net present value savings equal to three percent (3%) or more of the principal amount of the refunded Bonds, 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; (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 estimate of taxable assessed valuation within the District according to the Parker County 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 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 for districts issuing bonds for water, sewer, drainage or road facilities in Parker County. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 8 0 l 6391.00010:1041745.013 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 or the Attorney General, whichever .occurs first, 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 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 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 sixty (60) 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 or the Attorney 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 Agreement, but shall expressly exclude Section 6.09. 5.10 Bond Objections. The City shall have a period of sixty (60) 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 60-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 Ja "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 are approved by the TCEQ and the 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, the Utility 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. MomingStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 9 016391.00010:1041745.013 5.11 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 requests additional information regarding such issuance of the Bonds, the District shall promptly provide such information at no cost to the City. 5.12 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 Bonds issued within fifteen (15) years after the District Confirmation Date without the City's written consent; and (ii) the landowner or developer waives all claims against the City for reimbursement of obligations not evidenced by Bonds issued within fifteen (15) years after the District Confirmation Date. 5.13 Use of Cost Reimbursements for Bond Debt Payments. If the District or Owner receives payment from any party 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 VI DESIGN, CONSTRUCTION, INSPECTION, DEDICATION, OPERATION AND MAINTENANCE 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; (c)the rules and regulations of the TCEQ; and (d) the Utility Agreement. 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. With respect to water Infrastructure and wastewater Infrastructure standards, in the event of any conflict between this Agreement and the Utility Agreement, the Utility Agreement shall control. 6.02 Plan Review: Payment of Fees; and Pre-Construction Conference. Construction of Infrastructure shall not commence until the plans and specifications have been reviewed and Morningstar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 10 016391.00010:1041745.013 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 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. 6.04 Reports; Inspections. The District, or Owner on behalf of the District, may employ a consulting engineer to oversee construction of the Infrastructure. City inspectors or third party inspectors pursuant to the City's third party 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 all inspection reports required by TCEQ in a form acceptable to TCEQ. The City, however, in no way guarantees that the Infrastructure will be constructed in a manner acceptable to TCEQ or that TCEQ will approve the issuance of Bonds by the District. 6.05 Contracts with Contractors. Owner shall incorporate the requirements of this Article VI into written construction contracts with all,Contractors who are not Owners. 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 Property as the City may determine necessary for the purpose of inspection and testing of Infrastructure. 6.07 Wastewater Service; Dedication of Wastewater Infrastructure and Easements to City. The District will dedicate all wastewater Infrastructure constructed by or on behalf of the District both inside and outside the Property, 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. Thereafter, the City will provide retail wastewater service to the Property. 6.08 Water Service; Dedication of Water Infrastructure and Easements to City. The District will dedicate all water Infrastructure constructed by or on behalf of the District, both inside and outside the Property, 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. Thereafter, the City will provide retail potable water service to the Property. The District will supply groundwater for irrigation. The Groundwater System shall remain the property of the District, except as otherwise provided by the Utility Agreement. 6.09 Operation and Maintenance of Infrastructure. The District shall cause all Infrastructure to be operated and maintained in accordance with the Utility Agreement,cxcepf' for water and wastewater infrastructure dedicated to the City pursuant to Section 6.07 and J�' ' MorningStar Ranch MUD No. 1 �G4a Final Agreement Concerning Creation and Operation Page 11 016391.00010:1041745.013 Section 6.08, which shall be operated and maintained by.the City in accordance with the Utility Agreement. 6.10 As-Built Drawings. The District shall deliver mylar as-built drawings for all Infrastructure to the City's Engineering Department within thirty(30) days after final inspection. 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 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. 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) retail residential water connections outside the District with the Water Director's written approval. ARTICLE IX CONVERSION, CONSOLIDATION, DIVISION OR ANNEXATION BY DISTRICT Without prior City Council approval, the District shall not(a) convert into another type of district; (b) consolidate with another district; (c) divide into two or more districts; (d) seek additional governmental powers beyond those described in Section 5.02; or (e) annex land. 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. 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 Property upon annexation. 10.02 Incorporation. 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 Property or any part thereof, or (b) sign, join in, associate with, or direct to be signed any petition seeking to MomingStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 12 016391.00010:1041745.013 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 District Confirmation Date, the District shall file in the real property records of Parker 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 10.05. 10.04 Annexation of Portions of Property. Owner and the District agree to cooperate with and assist the City in annexing one or more areas in the manner prescribed by law which does not result in the dissolution of the District, 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. The City agrees that such areas shall be located within right-of-way areas or along lot lines whenever possible. Notwithstanding the zoning designation approved for the annexed area, such area can be developed and used in accordance with the Development Agreement. 10.05 Full Purpose Annexation. The City will not annex the Property for full purposes any earlier than the first to occur of: (a) the dissolution of the District (other than as a result of annexation by the City); or (b)January 29, 2023, which is 15 years after the effective date of the Development Agreement. 10.06 Limited Purpose Annexation. The Parties agree that the City shall have the right to annex those portions of the Property that are intended for 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 forth in 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; provided, however, if the creation of the District has not been confirmed at an election conducted on or before June 1, 2010, this Agreement may be terminated by the City by providing Notice to Owner. ARTICLE XII BREACH,NOTICE AND REMEDIES 12.01 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. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 13 016391.00010:1041745.013 12.02 Cure of Breach. The breaching Party shall commence curing such breach within fourteen (14) calendar days after receipt of Notice of the breach and 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 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, 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 may 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 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 other than the District or 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. 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 MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 14 016391.00010:1041745.013 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 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: Development Director FAX: 817-392-7985 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: Engineering Director FAX: 817-871-7895 MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 15 016391.00010:1041745.013 To the District: MorningStar Ranch Municipal Utility District No. 1 of Parker County c/o: Coats Rose 5420 LBJ Freeway, Suite 1300 Dallas, Texas 75240 Attn: Timothy G. Green FAX: 972-982-8451 To Owner: WYA The Ranch at Mary's Creek, Ltd. 1122 Jackson Street Suite 616 Dallas, Texas 75202 Attn: Allen Jones FAX: 214-593-1196 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 City Consent 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. 13.04 Governing Law and Venue. THIS AGREEMENT MUST BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, AS THEY APPLY TO CONTRACTS PERFORMED WITHIN THE STATE OF TEXAS AND WITHOUT REGARD TO ANY CHOICE OF LAW RULES OR PRINCIPLES TO THE CONTRARY. THE PARTIES ACKNOWLEDGE THAT THIS AGREEMENT IS PERFORMABLE IN TARRANT COUNTY, TEXAS, AND HEREBY SUBMIT TO THE JURISDICTION OF THE COURTS OF TARRANT COUNTY, TEXAS, AND HEREBY AGREE THAT ANY SUCH COURT SHALL BE A PROPER FORUM FOR THE DETERMINATION OF ANY DISPUTE ARISING HEREUNDER. 13.05 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 trrgs-*ct 7 -- and that the individual executing this Agreement on behalf of the City has been authorized to do `,-',���) MorningStar Ranch MUD No. 1 to Final Agreement Concerning Creation and Operation Page 16 �� ,�,li 016391.00�11O,U4.1.74"13- so. Owner warrants that the execution of this Agreement is duly authorized in conformity with its articles of incorporation, bylaws, partnership agreement, or other applicable organizational documents and that the individual executing this Agreement on behalf of 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. 13.06 Entire Agreement; Severability. 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 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 severed provision which new provision shall, to the extent possible, accomplish the intent of the Parties evidenced by the severed provision. Without limiting the generality of the foregoing, (i) if it is determined that, as of the Effective Date, Owner does not own any portion of the Property, this Agreement shall remain in full force and effect with respect to all of the Property that Owner does then own, and (ii) if it is determined, as of the Effective Date, that any portion of the Property is not within the City's ETJ, this Agreement shall remain in full force and effect with respect to all of the Property that is then within the City's ETJ. If at any time after the Effective Date it is determined that any portion of the Property is no longer within the City's ETJ, this Agreement shall remain in full force and effect with respect to all of the Property that remains within the City's ETJ. 13.07 Changes in State or Federal Laws. If any state or federal law changes so as to make it impossible for any Party 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. 13.08 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 as the other Party may reasonably request to effectuate_ the terms of this Agreement. 13.09 Captions. Captions and headings used in this Agreement are for reference purposes only and shall not be deemed a part of the Agreement. 13.10 Assignment. (a) Neither the District nor the City may assign this Agreement without the written consent of the other Parties. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 17 016391.00010:1041745.013 (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 "Assignee") without the consent of the City, provided that the following conditions are satisfied: (i) if not the District, Assignee is a successor owner of all or any part of the Property or is a lender to Owner or a successor owner of all or any part of the Property; or (ii) if not the District, Assignee has a contractual right to be reimbursed for water, sewer, drainage, roads or other eligible expenses from District Bonds (or has a lien or other security interest in such reimbursements); and (iii) the assignment is in writing executed by Owner and Assignee in the form of assignment attached as Exhibit E; and (iv) 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 (v) A copy of the executed assignment is provided to all Parties within fifteen (15) days after execution. (c) Provided the foregoing conditions are satisfied, from and after the date the 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 Assignee, the Notice information required by this Agreement and 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 nonjudicial. This Agreement shall be binding upon and insure to the benefit of the Parties 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. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 18 016391.00010:1041745.013 13.11 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. 13.12 Interpretation. The Parties acknowledge that each party and, if it so chooses, its counsel have reviewed and revised this Agreement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. As used in this Agreement, the term "including" means "including without limitation" and the term "days" means calendar days, not business days. Wherever required by 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. 13.13 No Third Party Beneficiary. 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. 13.14 Reimbursement for City's Professional Fees. Owner will reimburse the City for reasonable attorneys fees incurred by the City in connection with negotiation of this Agreement, the Development Agreement, the Strategic Partnership Agreement, the Utility Agreement, and any other documents executed by Owner, the District, and the City in connection with the Property up to a maximum amount of$10,000. 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. 13.15 Recitals. The recitals contained in this Agreement: (a) are true and correct as of the Effective Date; (b) form the basis upon which the Parties negotiated and entered into this Agreement; (c) are legislative findings of the City Council, and (d) reflect the final intent of the Parties with regard to the subject matter of this Agreement. In the event it becomes necessary to interpret any provision of this Agreement, the intent of the Parties, as evidenced by the recitals, shall be taken into consideration and, to the maximum extent possible, given full effect. The Parties have relied upon the recitals as part of the consideration for entering into this Agreement and, but for the intent of the Parties reflected by the recitals, would not have entered into this Agreement. 13.16 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! MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 19 016391.00010:1041745.013 Exhibit A Map of the Property Exhibit B Legal Description of the Property Exhibit C Strategic Partnership Agreement Exhibit D Annexation Notice Exhibit E Assignment and Assumption Agreement 13.17 Conspicuous Provisions. 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. 13.18 Counterpart 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: CITY OF FORT WORTH rr nObe:rT !l, �rocG1�� '4'T;h� r0� By. ...� Marty Hend ' , City Secretar arc 66, Assistant City Manager Date: l 2 O 8' APPROVED AS TO FORM AND LEGALITY: Contract Authorization Assistant C' y Attorney ,..r� (Q Date��}. STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me, on theme day of , 20V, bc,T A,Ody Marc Ott, Assistant City Manager of the City of Fort Worth, Texas on behalf of said city. tl [SEAL] �� Q c J cx� Notary Public, State of Texas HETTIE LANE Printed Name: wry COMMiss!ON EXPIRES My Commission Expires:July 26,2011 ILE srN�� ,r�i5 f di 6MorningStar Ranch MUD No. 1 ��Final Agreement Concerning Creation and Operation Page 20 � � e WYA THE RANCH AT MARY'S CREEK, LTD. By: WYA The Ranch Holdings, LLC Its: Gen I Partner By: Name: /fit , Its: Y1/1Gc v9.✓ Date: _ I e j STATE OF TEVAS § COUNTY OF § This instrument was acknowledged before me, on the -1k day o 200* b YA The Ranch at Mary's Creek;, Ltd., by of WYA T'he anch Holdings, LLC, its teneral partner. [SEAL] — otary Public, State o Texas` SANDRA DENMAN ' Printed Name/ Notary Public,State of Texas My Commission Expires My Commission Expires: October 14, 2008 MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 21 016391.00010:1041745.013 Pursuant to Article IV hereof and following the District Confirmation Date, the District has executed the Agreement. MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF PARKER COUNTY By: President, Board of Directors Date: STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me, on the day of , 200_, by , President, Board of Directors of MorningStar Ranch Municipal Utility District No. 1 of Parker County, on behalf of said district. [SEAL] Notary Public, State of Texas Printed Name: My Commission Expires: iJL L MorningStar Ranch MUD No. 1 T Final Agreement Concerning Creation and Operation Page 22 016391.00010:1041745.013 Exhibit A Map of the Property MUD NO.2 MUD NO.1 MUD NO.2 MUD NO.1 O 3 Ga a, tia 20 MUD 1=380.316 AC aa �, MUD 2=356.829 AC Q w M M w MUD NO.2 MUD NO.1 OLD WEATHERFORD ROAD N MAP OF THE WE PROPERTY s Cwter Bwgy EXHIBIT JOB 11 014574 DATE: 8.27.07 DRAWN: JST DESIGNED: A DGN=q-\JoD\014367\cly\EXHIBITS\20070713 - H&L\CA - Exh A.sht CoDyrlpht02007 by Car*er& Burgess.Inc. ................................. ......._.._-.........---.._._........-._...-_...--.._.__..._--'--------...---------...-..-------._.._.--...--.-....._-.-. MorningStar Ranch MUD No. 1 Exhibit A to Final Agreement Concerning Creation and Operation Page 1 016391.00010:1041745.013 Exhibit B Legal Description of Property LEGAL DESCRIPTION MorningStar RANCH MUD No.1 BEING situated in the M.S.Teeter Survey,Abstract No.2070,the J.Morris Survey,Abstract No.927,the P.J.McClary Survey,Abstract No.907 and the W.Cagle Survey,Abstract No. 2373,Parker County,Texas and being a portion of that tract of land as described by deed to WYA THE RANCH AT MARY'S CREEK,LTD.and recorded in Book 2463,Page 618,Deed Records,Parker County,Texas,and being more particularly described by metes and bounds as follows: COMMENCING at a fence post found at the northeast comer of said WYA THE RANCH AT MARY'S CREEK,LTD.tract; THENCE along the easterly line of said WAY THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: S 00-22'37"W,354.77 feet to the POINT OF BEGINNING; S 00022'37"W, 1457.92 feet along the easterly line of said WYA THE RANCH AT MARY'S CREEK,LTD.tract to a fence post found; S 89.34'41"W,2076.82 feet continuing along said easterly line to a fence post found; S 00042'02'E,4816.76 feet continuing along said easterly line to a fence post found; THENCE along the southerly line of said WYA THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: N 68°49'42"W,339.65 feet to a fence post found; N 78011'08"W,384.05 feet to a fence post found; S 78046'55"W,295.49 feet to a fence post found; S 72037'24"W,627.49 feet to a fence post found; S 83049'48"W,239.95 feet; N 81-33'35'W,83.79 feet; N 62'10'16"W, 178.76 feet; N 81°40'3TV,529.57 feet to a fence post found; C&B Job No.014367.010.001.0447 J:\JOB\01457401\SUR\WP\LEG\4754—EXmudl.doc September 04,2007 Page 1 of 7 MorningStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning Creation and Operation Page 1 016391.00010:1041745.013 N 89026'43"W, 1437.01 feet to a TXDOT monument found,the southwest comer of said WYA THE RANCH AT MARY'S CREEK,LTD.tract; THENCE along the westerly line of said WYA THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: N 44045'58"W,71.58 feet to a TXDOT monument found; N 00032'56"W,562.53 feet; THENCE N 85048'15"E, 1514.69 feet; THENCE N 87009'53"E,46.34 feet; THENCE S 8602716"E,95.53 feet; THENCE S 78005'25"E,94.26 feet; THENCE S 70049'05"E, 106.81 feet; THENCE S 19059'58"W, 119.12 feet to the beginning of a curve to the left; THENCE with said curve to the left,an arc distance of 104.46 feet,through a central angle of 11°17'33"having a radius of 530.00 feet,the long chord of which bears S 1402l'11"W, 104.29 feet; THENCE S 08042'25"W,137.06 feet; THENCE S 81059'04"E,494.11 feet; THENCE N 47038'34"E, 190.28 feet; THENCE N 30003'08"E, 137.47 feet; THENCE N 05039'46"E,22.14 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left,an arc distance of 113.11 feet,through a central angle of 129036'59"having a radius of 50.00 feet,the long chord of which bears N 00026'49"E,90.49 feet to the beginning of a reverse curve to the right; THENCE with said reverse curve to the right,an arc distance of 14.10 feet,through a central angle of 16009'31"having a radius of 50.00 feet,the long chord of which bears N 56016'54"W, 14.05 feet; THENCE N 75023'58"E, 157.00 feet; C&B Job No.014367.010.001.0447 J:UOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 2 of 7 I MomingStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning Creation and Operation Page 2 016391.00010:1041745.013 THENCE N 83024'16"E,350.00 feet; THENCE N 06035'44"W, 110.00 feet; THENCE N 83024'16"E,15.00 feet; THENCE N 06035'44"W, 1400.02 feet; THENCE S 83024'51"W,55.99 feet; THENCE N 05040'55"W, 127.64 feet; THENCE N 65008'10"W,31.87 feet; THENCE N 65008'10"W,239.34 feet; THENCE S 65000'30"W, 131.35 feet; THENCE S 69016'09"W, 168.18 feet; THENCE N 24050'19"W, 1167.78 feet; THENCE S 65009'41"W,310.00 feet; THENCE N 24050'19"W,405.32 feet; THENCE N 16010'32"W, 171.96 feet; THENCE N 07053'29"W,230.10 feet; THENCE S 86017'21"W,96.81 feet; THENCE N 23002'17"W,84.57 feet; THENCE S 69039'33"W, 180.01 feet; THENCE S 57044'58"W,461.86 feet; THENCE S 70049'02"W,45.68 feet; THENCE S 71034'26"W,96.53 feet; THENCE S 87004'13"W,50.05 feet; THENCE N 89057'22"W, 198.26 feet to the beginning of a non-tangent curve to the left; C&B Job No.014367.010.001.0447 J:\1OB\01457401\SUR\WP\L.EG\4754_EXmudl.doc September 04,2007 Page 3 of 7 MorningStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning Creation and Operation Page 3 0163 91.00010:1041745.013 THENCE with said non-tangent curve to the left,an arc distance of 203.73 feet,through a central angle of 08°38'47"having a radius of 1350.00 feet,the long chord of which bears N 14°06'11"W,203.53 feet; THENCE N 18025'34"W,1160.38 feet to the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 48.09 feet,through a central angle of 01'37'15"having a radius of 1699.86 feet,the long chord of which bears N 17°35'43"W,48.09 feet; THENCE N 89050'00"E,545.85 feet; THENCE N 89050'00"E, 154.99 feet; THENCE N 89°29'09"E, 135.00 feet; THENCE N 76042'29"E,46.11 feet; THENCE N 89038'35"E, 133.71 feet; THENCE S 83040'51"E,42.67 feet; THENCE S 77004'10"E,42.67 feet; THENCE S 70026'11"E,42.95 feet; THENCE N 22014'49"E, 105.02 feet; THENCE S 67045'l l"E,301.10 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left,an arc distance of 113.92 feet,through a central angle of 130°32'26"having a radius of 50.00 feet,the long chord of which bears N 77009'43"E,90.83 feet; THENCE N 22014'49"E,97.79 feet; THENCE S 67045'11"E,330.00 feet; THENCE S 59023'48"E,173.98 feet; THENCE S 32050'28"E,139.36 feet; THENCE S 43024'57"E,90.41 feet; THENCE N 41°06'S6"E, 112.29 feet to the beginning of a non-tangent curve to the left; C&B Job No.014367.010.001.0447 J:UOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 4of7 MorningStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning Creation and Operation Page 4 016391.00010:1041745.013 THENCE with said non-tangent curve to the left,an arc distance of 94.00 feet,through a central angle of 107°42'58"having a radius of 50.00 feet,the long chord of which bears N 53029'31"E,80.76 feet; THENCE N 41006'56"E, 136.88 feet; THENCE N 48053'04"W, 181.67 feet; THENCE N 40042'12"E,204.56 feet; THENCE N 14037'03"E,225.51 feet; THENCE N 07017'50"E,60.49 feet; THENCE N 00000'00"E,545.00 feet; THENCE S 90000'00'T,750.00 feet; THENCE S 00000'00"W, 170.00 feet; THENCE S 90000'00"E,820.00 feet; THENCE S 63026'15"E,55.90 feet; THENCE S 78041'24"E, 152.97 feet; THENCE S 90000'00"E, 180.71 feet; THENCE S 37033'53"E, 129.89 feet to the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 36.14 feet,through a central angle of 41024'34"having a radius of 50.00 feet,the long chord of which bears S 16051'35"E,35.36 feet to the beginning of a reverse curve to the left; THENCE with said reverse curve to the left,an arc distance of 23.33 feet,through a central angle of 26044'00"having a radius of 50.00 feet,the long chord of which bears S 0903l'17"E, 23.12 feet; THENCE S 13041'36"W, 146.01 feet; THENCE S 25022'44"E, 111.32 feet; THENCE S 20050'19"W,25.00 feet; THENCE S 64033'52"E, 139.53 feet; C&B Job No.014367.010.001.0447 J:\JOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 5 of 7 vf.�If1 i.. .isV�Jt.'L'i MorningStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning, Creation and Operation Page 5 016391.00010:1041,745.013 THENCE S 50027'56"E,51.97 feet; THENCE S 68011'35"E,123.38 feet; THENCE N 40014'35"E,80.41 feet; THENCE N 48030'03"E,90.00 feet; THENCE S 71°15'54"E,117.86 feet; THENCE S 63005'05"E, 143.02 feet; THENCE S 00000'00"W,264.84 feet; THENCE N 89036'00"E,119.30 feet; THENCE S 81003'37"E,51.32 feet; THENCE S 90000'00"E,120.00 feet; THENCE N 00000'00"E,340.00 feet; THENCE S 90000'00"E,170.00 feet; THENCE S 00000'00"W,19.64 feet; THENCE N 89036'00"E,541.14 feet; „ THENCE N 00000'00"E,750.02 feet; THENCE N 89036'00"E,73.55 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right,an arc distance of 43.25 feet,through a central angle of 49°33'56"having a radius of 50.00 feet,the long chord of which bears N 81010'36"E,41.92 feet; THENCE N 38052'39"E,65.14 feet; THENCE S 90000'00"E,121.22 feet to the POINT OF BEGINNING and containing 380.316 acres of land more or less. NOTE This document was prepared under 22TAC§663.21,does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property,except those C&B Job No.014367.010.001.0447 J:\JOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 6 of 7 MorningStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning Creation and Operation Page 6 0163 91.00010:104174 5.013 rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared. C&B Job No,014367.010.001.0447 J:UOB1014574011SUR1WPU.EG147$4_EXmudl.doc September 04,2007 Page 7of7 MorningStar Ranch MUD No. 1 Exhibit B to Final Agreement Concerning Creation and Operation Page 7 016391.00010:1041745.0 l 3 Exhibit C Strategic Partnership Agreement STRATEGIC PARTNERSHIP AGREEMENT BETWEEN THE CITY OF FORT WORTH, TEXAS AND MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF PARKER COUNTY STATE OF TEXAS § COUNTY OF PARKER § This Strategic Partnership Agreement (this "Agreement") is entered into by the City of Fort Worth, a home-rule municipal corporation situated in Tarrant, Denton and Wise Counties, Texas (the "City"), acting by and through its duly authorized Assistant City Manager, and MorningStar Ranch Municipal Utility District No. 1 of Parker County (the "District"), acting by and through its duly authorized Board of Directors, under the authority of Section 43.0751 of the Texas Local Government Code ("Local Government Code"). RECITALS A. Local Government Code, Section 43.0751 (the "Act"), authorizes the City and a municipal utility district to negotiate and enter into a strategic partnership agreement by mutual consent. B. This Agreement authorizes the City to annex certain tracts of land within the District that have been or may in the future be designated for commercial use for limited purposes for the purpose of collecting Sales and Use Tax Revenues within such commercial tracts and to annex all land within the District for full purposes on terms acceptable to the City and the District. C. Pursuant to this Agreement the City will pay to the District an amount equal to a portion of such Sales and Use Tax Revenues, which may be used to fund the installation and construction of Infrastructure and for other purposes in accordance with this Agreement. D. The District and the City acknowledge that this Agreement provides benefits to each party, including revenue, services and regulatory benefits. E. The District and the City acknowledge that this Agreement does not require the District to provide revenue to the City solely for the purpose of obtaining an agreement with the City to forgo annexation of the District. NOW THEREFORE, for and in consideration of the mutual agreements, covenants, and conditions contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are acknowledged, the District and the City agree as follows: Morningstar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 1 016391.00010:1041745.013 ARTICLE I FINDINGS A. The District is a conservation and reclamation district created by the Texas Commission on Environmental Quality ("TCEO") pursuant to Article XVI, Section 59, of the Texas Constitution, and Chapters 49 and 54 of the Texas Water Code. B. On December 4, 2007, the City Council adopted Resolution No. 3560-12-2007 consenting to the creation of the District (the "Consent Resolution") and approved that certain Agreement Concerning Creation and Operation of MorningStar Ranch Municipal Utility District No. 1 of Parker County (City Secretary Contract No. 36198, M & C-22562) (the "Consent Agreement"). C. The District encompasses approximately 380.316 acres, more or less, all of which are located within Parker 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"). D. WYA The Ranch at Mary's Creek, Ltd., a Texas limited partnership ("Owner"), has represented to the City and the District that it owns the Property. E. Owner and the City have entered into the Development Agreement for MorningStar Ranch (City Secretary Contract No. 36202, M& C-22562) governing the Property and the 356.829 acres encompassed by MorningStar Ranch Municipal Utility District No. 2 of Parker County ("District Two"), 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 3, consisting of approximately 10.841 acres, as shown on Exhibit C and described on Exhibit D attached to this Agreement. F. The City Council and Owner have entered into the Utility Agreement for MorningStar Ranch (City Secretary Contract No. 36195, M& C-22562) relating to the provision of water and wastewater service and the construction, ownership, operation and maintenance of water and wastewater infrastructure to serve the Property and the land included in District Two (the"Utility Agreement"). G. The City and the District desire to enter into this Agreement providing for limited purpose annexation of the portions of the Property within which commercial uses may occur for the purpose of collecting Sales and Use Tax Revenues within the annexed areas in accordance with Subsection (k) of the Act, and for the sharing of Sales and Use Tax Revenues between the City and the District. H. The District provided notice of two public hearings concerning the adoption of this Agreement and the proposed limited purpose annexation of the Original Commercial Property, as defined below, in accordance with the procedural requirements of the Act. I. The Board of Directors of the District conducted two public hearings regarding this Agreement and the proposed limited purpose annexation of the Original Commercial MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 2 016391.00010:104 l 745.013 i Property, at which members of the public who wished to present testimony or evidence regarding this Agreement and the proposed limited purpose annexation were given the opportunity to do so, in accordance with the procedural requirements of the Act on , 200�, at .m. at and on , 200_, at .m. at J. The Board of Directors of the District approved this Agreement on 200_, in open session at a meeting held in accordance with Chapter 551 of the Government Code. K. The City provided notice of two public hearings concerning the adoption of this Agreement and the proposed limited purpose annexation of the Original Commercial Property, in accordance with the procedural requirements of the Act. L. The City Council conducted two public hearings regarding this Agreement and the proposed limited purpose annexation of the Original Commercial Property, at which members of the public who wished to present testimony or evidence regarding this Agreement and the proposed limited purpose annexation were given the opportunity to do so, in accordance with the procedural requirements of the Act on , 200_, at .m., at the City Council Chambers and on , 200_, at .m., at the City Council Chambers. M. The City Council approved this Agreement on , 200_, in open session at a meeting held in accordance with Chapter 551 of the Government Code (M & C ), which approval occurred after the Board of Directors of the District approved this Agreement. N. All procedural requirements imposed by.law for the adoption of this Agreement have been met. O. Pursuant to the Consent Agreement and the Utility Agreement,.the District will construct or cause to be constructed, certain water and wastewater facilities within the boundaries of the Property and outside the boundaries of the Property as required to connect such facilities to the City's water and wastewater systems, all in accordance with City standards. The District shall dedicate such facilities to the City, which shall operate and maintain such facilities as part of the City's water and wastewater systems in accordance with the terms of the Utility Agreement. P. Pursuant to the Consent Agreement, the District will construct, operate, and maintain or cause to be maintained drainage and road systems within the District in accordance with City standards. Q. In accordance with the requirements of Subsection (p)(2) of the Act, this Agreement provides benefits to the City and the District, including revenue, services, and regulatory benefits which are reasonable and equitable with regard to the benefits provided to the other. MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 3 016391.00010:1041745.013 ARTICLE II DEFINITIONS Terms used in this Agreement shall have the following meanings: "Act" means the Texas Local Government Code, Section 43.0751, and any amendments thereto. "Additional Commercial Property" means any property within the District Boundaries designated for commercial use, other than the Original Commercial Property. "Agreement" means this Strategic Partnership Agreement between the City and the District. "Board"means the Board of Directors of the District. "Bond" means (a) any instrument, including a bond, note, certificate of participation, or other instrument evidencing a proportionate interest in payments, due to be paid by the District, or (b) any other type of obligation that (1) is issued or incurred by the District under the District's borrowing power, without regard to whether it is subject to annual appropriation, and (2) is represented by an instrument issued in bearer or registered form or is not represented by an instrument but the transfer of which is registered on books maintained for that purpose by or on behalf of the District. The term shall include obligations issued to refund outstanding bonds but shall not include reimbursement agreements entered into between the District and a developer of the Property or bond anticipation notes. "City" means the City of Fort Worth, Texas, a home rule municipality located in Tarrant, Wise, and Denton Counties. "City Council" means the City Council of the City. "City Secretary" means the City Secretary of the City. "City Manager" means the City Manager of the City. "City Share" means the City's share of Sales and Use Tax Revenues as defined by Section 4.02 of this Agreement. "Comptroller"means the Comptroller of Public Accounts of the State of Texas. "Consent Agreement" means the Agreement Concerning Creation and Operation of MornngStar Ranch Municipal Utility District No. 1 of Parker County, by and among the City, the District,. and Owner, which was approved by the City Council on December 4, 2007 (City Secretary Contract No. 36198, M & C-22562). "Development Agreement" means the Development Agreement for MorningStar Ranch, between the City and Owner, which was approved by the City Council on December 4, 2007 (City Secretary Contract No. 36202, M& C-22562). _. „ �J c, MorningStar Ranch MUD No. 1 ,vJ ?' Exhibit C to Final Agreement Concerning g0U Creation and Operation Page 4 � 0163 91.00010:1041745.013 "District"means the MorningStar Ranch Municipal Utility District No. 1 of Parker County. "District Boundaries" means boundaries of the District, consisting of the boundaries of the 380.316-acre tract as shown on Exhibit A and described on Exhibit B. "District Confirmation Date" means the date on which the Board of Directors of the District canvasses the results of the election held within the District confirming the creation of the District. "District Share" means the District's share of Sales and Use Tax Revenues as defined by Section 4.02 of this Agreement. "ETJ" means the extraterritorial jurisdiction of a city as defined by the Local Government Code, as amended, with the City's ETJ being an unincorporated area presently extending five miles from the City's corporate limits, excluding other incorporated municipalities and their respective ETJs. "Finance Director"means the Director of the City's Finance Department. "Government Code"means the Texas Government Code, as amended. "Infrastructure" means all water, wastewater, drainage, roadway and other infrastructure improvements installed or constructed to serve the Property, whether located within or outside the Property. "Limited Purpose Annexation Period" means the period commencing on the effective date of the limited purpose annexation of any Limited Purpose Property and ending upon the full purpose annexation or disannexation of such property. "Limited Purpose Property" means the property in the District that is annexed for limited purposes pursuant to this Agreement, including the Original Commercial Property and any Additional Commercial Property. "Local Government Code" means the Texas Local Government Code, as amended. "Notice" means notice as defined in Section 8.01 of this Agreement. "Original Commercial Property" means that certain 10.841-acre tract (Tract 3) designated for commercial use in the Development Agreement, as shown on Exhibit C and described on Exhibit D. "Owner" means WYA The Ranch at Mary's Creek, Ltd., a Texas limited partnership, its successors and assigns as permitted by Section 8.10 of this Agreement. "Party" means, individually, the City or the District, their successors and assigns as permitted by Section 8.10 of this Agreement. MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 5 016391.00010:1041745.013 "Property" means that certain 380.316-acre tract located in Parker 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. "Sales and Use Tax Account" means the account established pursuant to Section 4.03 in which the District deposits the District Share. "Tax Code" means the Texas Tax Code, as amended. "Utility Agreement" means the Utility Agreement for MorningStar Ranch executed by Owner and the City, and to be executed by the District and District Two after the District Confirmation Date (City Secretary Contract No. 36195, M & C-22562) relating to the provision of water and wastewater service and the construction, ownership, operation and maintenance of water and wastewater infrastructure for the Property and the land included in District Two. ARTICLE III ADOPTION OF AGREEMENT AND LIMITED-PURPOSE ANNEXATION OF ORIGINAL COMMERCIAL PROPERTY AND ADDITIONAL COMMERCIAL PROPERTY 3.01 Public Hearings. The District and the City acknowledge and agree that prior to the execution of this Agreement, the governing bodies of the District and the City have conducted public hearings for the purpose of considering the adoption of this Agreement and that such hearings were noticed and conducted in accordance with the terms of the Act, this Agreement, Chapter 551 of the Government Code, and the City's charter. 3.02 Effective Date. Pursuant to Subsection (c) of the Act, this Agreement is effective , the date of adoption of this Agreement by the City. 3.03 Filing in Property Records. The City shall file this Agreement in the Real Property Records of Parker County,.Texas. 3.04 Limited Purpose Annexation of Original Commercial Property. The District and the City agree that the City may annex all or any portion of the Original Commercial Property for the limited purpose of collecting Sales and -Use Tax Revenues within the Original Commercial Property pursuant to Subsection (k) of the Act. The District acknowledges that the 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 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 6 016391,00010:1041745.013 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 consents to the annexation of land connecting the Original Commercial Property or the Additional Commercial Property to the City limits. The City may annex property pursuant to this section for limited purposes as permitted by the Act. 3.07 Consent to Limited Purpose Annexation. The District on behalf of itself and all present and future Owners of land within the District Boundaries hereby requests that the City annex the Original Commercial Property and the Additional Commercial Property for limited purposes as provided in this Agreement. The District consents to such annexation and to the collection of Sales and Use Tax Revenues by the City within such Limited Purpose Property. Such consent shall bind the District and each Owner and Future Owner of land within the District Boundaries. ARTICLE IV TAXATION AND PROVISION OF SERVICES 4.01 Collection of Sales and Use Tax Revenues. The City may impose a sales and use tax within the Limited Purpose Property pursuant to Subsection(k) of the Act. The sales and use tax shall be imposed on all eligible commercial activities at the rate of one percent or other rate allowed under future amendments to Chapter 321 of the Tax Code and imposed by the City. Collection of the Sales and Use Tax Revenues shall take effect on the date described in Section 321.102 of the Tax Code. 4.02 Payment of Sales and Use Tax. In return for the benefits received by the City pursuant to this Agreement, the City shall pay to the District an amount equal to 50% of the Sales and Use Tax Revenues collected during the first nineteen (19) years of the Limited Purpose Annexation Period, and paid to the City as reflected in sales tax reports provided by the Comptroller to the City. Thereafter, the City shall pay to the District an amount equal to 25% of the Sales and Use Tax Revenues collected commencing on the first day of the twentieth (20th) year of the Limited Purpose Annexation Period, and paid to the City as reflected in the sales tax reports paid by the Comptroller to the City. All amounts payable to the District pursuant to this 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 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 7 016391.00010:1041745.013 from the Comptroller. Any payment of the District Share not made within such 30-day period shall bear interest calculated in accordance with Section 2251.025 of the Government Code. The City shall retain all Sales and Use Tax Revenues that do not constitute the District Share (the "City Share"). 4.03 District Use of Sales and Use Tax Revenues. The District shall deposit the District Share in a segregated interest-bearing account(the "Sales and Use Tax Account"). The District shall use funds in the Sales and Use Tax Account in the following order of priority: (a) Reimbursement for the construction or installation of Infrastructure; (b) Funding the construction or installation of Infrastructure; (c) Funding for any purpose for which the District may legally expend funds (including such items as District bond debt service, operational costs, and any contract tax obligations); provided, however, the District shall not fund any such. items if the District's ad valorem tax rate is, or with such funding of any such items would be, less than 90% of the City's ad valorem tax rate for the previous year; and (d) Purchasing and retiring any Bond after the tenth anniversary of its issuance. 4.04 City Use of Sales and Use Tax Revenues. The City may use the City Share for any lawful purpose; provided, however, it is the City's intent to use the additional 25% share of the Sales and Use Tax Revenues beginning on the first day of the twentieth (20t') 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 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 8 016391.00010:1041745.013 District's sole expense and may be performed at any time during the City's regular business hours on thirty (30) days Notice to the City. For purposes of any such audits, the City shall maintain and make available to the District's representatives all books, records, documents and other evidence of accounting procedures or practices in form sufficiently maintained to reflect the amount of Sales and Use Tax Revenues received by the City from the Limited Purpose Property. Notwithstanding the foregoing, however, if any audit conducted by the District reveals that the District Share has been underpaid by more than two percent (2%), the City shall reimburse the District for the reasonable cost of the audit. 4.09 District's Maintenance of Records and City's Audit Rights. The City may audit the Sales and Use Tax Account and the District's expenditures of the District Share to determine whether the expenditures have been made by the District in accordance with Section 4.03 of this Agreement. The District shall provide reasonable accommodations for the City to perform the audit. Any audit shall be made at the City's sole expense and may be performed at any time during the District's regular business hours on thirty (30) days Notice to the District. For purposes of any such audits, the District shall maintain and make available to the City's representatives all books, records, documents and other evidence of accounting procedures or practices in form sufficiently maintained to reflect deposits to the Sales and Use Tax Account and expenditures of the District Share. Notwithstanding the foregoing, however, if any audit conducted by the City reveals that the District has not used the District Share in accordance with Section 4.03, the District shall reimburse the City for the reasonable cost of the audit. Furthermore, if such breach is not cured as provided by Article VII, the City may withhold payments of future Sales and Use Tax Revenues in the amount of the improper expenditures. ARTICLE V FULL PURPOSE ANNEXATION 5.01 Full Purpose Annexation. In accordance with the terms of this Agreement and the Development Agreement, the City shall have the right, but not the obligation, to annex the Property (or a portion of the Property, to the extent permitted by law) for full purposes on or after the earlier to occur of: (a) dissolution of the District (other than as a result of annexation by the City); or (b) , which is fifteen (15) years after the Effective Date of the Development Agreement. Such authority is in addition to the authority to annex portions of the Property pursuant to Section 5.04. 5.02 Procedure for Full Purpose Annexation. The City and the District acknowledge that the Property is exempt from inclusion in the City's municipal annexation plan pursuant to Section 43.052(h)(3)(B) of the Local Government Code. The District hereby consents, on its behalf and on behalf of all current and future owners of land included within the District Boundaries, to full purpose annexation of the Property in accordance with the procedure for annexation of areas exempted from the municipal annexation plan contained in Chapter 43 of the Local Government Code, Subchapter C-1, or, if Subchapter C-1 is amended or repealed, in accordance with the most comparable annexation procedure. In the alternative, at City's election, the Property shall be deemed to be within the full-purpose boundary 11-mits of the City on the full purpose annexation conversion date in accordance with Section 43.07 5 L q, h� Local,,- 'CAR, MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning' 9 Creation and Operation Page 9 `-- 016391.00010:1041745.013 Government Code. The full purpose annexation conversion date shall be established by a resolution adopted by the City Council and shall be no earlier than the first to occur of the events described in Section 5.01. 5.03 CONSENT TO ANNEXATION. OWNER AND ALL FUTURE OWNERS OF ALL OR ANY PORTION OF THE PROPERTY IRREVOCABLY AND UNCONDITIONALLY CONSENT TO THE FULL PURPOSE ANNEXATION OF THE PROPERTY INTO THE CORPORATE LIMITS OF THE CITY IN ACCORDANCE WITH THIS AGREEMENT AND WAIVE ALL OBJECTIONS AND PROTESTS TO SUCH ANNEXATION. THIS AGREEMENT SHALL SERVE AS THE PETITION OF OWNER AND ALL FUTURE OWNERS TO FULL PURPOSE ANNEXATION OF THE PROPERTY IN ACCORDANCE WITH THIS AGREEMENT. 5.04 Annexation of Portions of Property. The District agrees to cooperate with and assist the City in annexing one or more areas in the manner prescribed by law which does not result in the dissolution of the District, none of which may exceed 525 feet in width at its widest point or such other width limitation subsequently imposed by law, as reasonably necessary for the City to connect areas to the City that are outside the District and that the City intends to annex. The City consents and agrees that such areas shall be located within right-of-way areas or along lot lines whenever possible. Notwithstanding the zoning designation approved for the annexed area, such area may be developed and used in accordance with the Development Agreement. ARTICLE VI TERM This Agreement commences on the Effective Date and continues until the City annexes the Property for full purposes (subject to the provisions of the Development Agreement). The provisions of this Agreement relating to the collection of sales and use tax will automatically terminate with regard to any portion of the Limited Purpose Property upon disannexation or full purpose annexation of such property. ARTICLE VII BREACH,NOTICE AND REMEDIES 7.01 Notification of Breach. If either Party commits a breach of this Agreement, the non-breaching Party shall give Notice to the breaching Party that describes the breach in reasonable detail. 7.02 Cure of Breach. The breaching Party shall commence curing such breach within fourteen (14) calendar days after receipt of Notice of the breach and shall complete the cure within fourteen (14) calendar days from the date of commencement of the cure; however, if the breach is not reasonably susceptible to cure by the breaching Party within such fourteen (14) day period, the non-breaching Party shall not bring any action so long as the breaching Party has commenced to cure the default within such fourteen (14) day period and diligently completes the work within a reasonable time without unreasonable cessation of the work. MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 10 016391.00010:1041745.013 7.03 Remedies for Breach. If the breaching Party does not substantially cure such breach within the stated period of time, the non-breaching Party may, in its sole discretion, and without prejudice to any other right under this Agreement, law, or equity, seek any relief available at law or in equity, including, but not limited to, an action under the Uniform Declaratory Judgment Act, specific performance, mandamus and injunctive relief, provided, however, the non-breaching Party shall not be entitled to terminate this Agreement. The Parties specifically waive any right that they have or in the future may have to terminate this Agreement. Damages, if any, to which any non-breaching Party may be entitled shall be limited to actual damages and shall not include special or consequential damages. In addition, the prevailing party in any such action shall be entitled to reasonable attorney's fees and costs of litigation as determined in a final, non-appealable order in a court of competent jurisdiction. ARTICLE VIII ADDITIONAL PROVISIONS 8.01 Notice. Any notices, certifications, approvals, or other communications (a "Notice") required to be given by one Party to another under this Agreement shall be given in writing addressed to the Party to be notified at the address set forth below and shall be deemed given: (a) when the Notice is delivered in person to the person to whose attention the Notice is addressed; (b) when received if the Notice is deposited in the United States Mail, certified or registered mail, return receipt requested, postage prepaid; (c)when the Notice is delivered by Federal Express, UPS, or another nationally recognized courier service with evidence of delivery signed by any person at the delivery address; or (d) five business days after the Notice is sent by FAX (with electronic confirmation by the sending FAX machine) with a confirming copy sent by United States mail within 48 hours after the FAX is sent. If any date or period provided in this Agreement ends on a Saturday, Sunday, or legal holiday,the applicable period for calculating the notice shall be extended to the first business day following the Saturday, Sunday, or legal holiday. For the purpose of giving any Notice, the addresses of the Parties are set forth below. The Parties may change the information set forth below by sending Notice of such changes to the other Party as provided in this section. To the City: City of Fort Worth, Texas 1000 Throckmorton Street Fort Worth, Texas 76102 Attn: City Secretary FAX: 817-392-6196 City of Fort Worth, Texas 1000 Throckmorton Street Attn: City Manager Fort Worth, Texas 76102 Attn: City Manager FAX: 817-392-6134 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 11 016391.00010:1041745.013 City of Fort Worth, Texas 1000 Throckmorton Street Attn: Finance Director Fort Worth, Texas 76102 Attn: Finance Director FAX: 817-392-8966 To the District: MorningStar Ranch Municipal Utility District No. 1 of Parker County c/o: Coats Rose 5420 LBJ Freeway, Suite 1300 Dallas, TX 75240 Attn: Timothy G. Green FAX: 972-982-8451 8.02 Payments. The City shall forward payments of the District Share to the District at the address set out in Section 8.01 by regular U.S. Mail or other method of delivery mutually acceptable to the Parties. 8.03 No Waiver. Any failure by a Party to insist upon strict performance by the other Party of any provision of this Agreement shall not be deemed a waiver thereof, and the Party shall have the right at any time thereafter to insist upon strict performance of any and all of the provisions of this Agreement. No provision of this Agreement may be waived except by writing signed by the Party waiving such provision. Any waiver shall be limited to the specific purpose for which it is given. No waiver by any Party hereto of any term or condition of this Agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 8.04 Governing Law and Venue. This Agreement must be construed and enforced in accordance with the laws of the State of Texas, as they apply to contracts performed within the State of Texas and without regard to any choice of law rules or principles to the contrary. The Parties acknowledge that this Agreement is performable in Tarrant County, Texas and hereby submit to the jurisdiction of the courts of Tarrant County, Texas and agree that any such court shall be a proper forum for the determination of any dispute arising hereunder. 8.05 Authority to Execute. The City certifies, represents, and warrants that the execution of this Agreement is duly authorized and adopted in conformity with the City Charter and City ordinances. The District certifies, represents and warrants that the execution of this Agreement is duly authorized and adopted by the Board. 8.06 Entire Agreement; Severability. This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements, whether oral or written, covering the subject matter of this Agreement. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable for any reason, then (a) such unenforceable MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 12 0163 91.00010:1041745.013 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 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 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 13 0163 91.00010:1041745.013 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. ATTEST: CITY OF FORT WORTH By: Marty Hendrix, City Secretary Marc Ott,Assistant City Manager Date: APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me, on the day of , 200_, by Marc Ott, Assistant City Manager of the City of Fort Worth, Texas on behalf of said city. Notary Public, State of Texas [SEAL] Printed Name: My Commission Expires: MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning � Creation and Operation Page 14 U U 016 tT-T — MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF PARKER COUNTY By: Printed Name: President, Board of Directors Date: STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me, on the day of 200_,by , President, Board of Directors of MorningStar Ranch Municipal Utility District No. 1 of Parker County, on behalf of said district. Notary Public, State of Texas [SEAL] Printed Name: My Commission Expires: MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 15 016391.00010:1041745.013 Exhibit A Map of the Property MUD NO.2 MUD NO.1 MUD NO.2 MUD NO.1 9� O �o GO MUD 1=380.316 AC a MUD 2=356.829 AC N M M w MUD NO.2 MUD NO. 1 OLD WEATHERFORD ROAD N MAP OF THE w E PROPERTY S C=*w-Bwveas EXHIBIT _ JOB # 014574 DATE: 8.27.07 DRAWN: JST DESIGNED: DGN=q.\Joh\014367\civ\EXHIBITS\20070713 - H&L\CA - Exh A.sht Cooyrlph+02007 Dy Cor+er y Burgess,Inc. .._--------------------............_.._.._...'.....__..__...._..__..._..._....._-__...... -------__.. _.._......__------...._._------------.._..__-_ ......... MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 16 016391.00010:1041745.013 Exhibit B Legal Description of Property LEGAL DESCRIPTION MorningStar RANCH MUD No.1 BEING situated in the M.S.Teeter Survey,Abstract No.2070,the J.Moms Survey,Abstract No.927,the P.J.McClary Survey,Abstract No.907 and the W.Cagle Survey,Abstract No. 2373,Parker County,Texas and being a portion of that tract of land as described by deed to WYA THE RANCH AT MARY'S CREEK,LTD.and recorded in Book 2463,Page 618,Deed Records,Parker County,Texas,and being more particularly described by metes and bounds as follows: COMMENCING at a fence post found at the northeast comer of said WYA THE RANCH AT MARY'S CREEK,LTD.tract; THENCE along the easterly line of said WAY THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: S 00°22'37"W,354.77 feet to the POINT OF BEGINNING; S 00°22'37"W,1457.92 feet along the easterly line of said WYA THE RANCH AT MARY'S CREEK,LTD.tract to a fence post found; S 89`34'41"W,2076.82 feet continuing along said easterly line to a fence post found; S 00°42'02'T,4816.76 feet continuing along said easterly line to a fence post found; THENCE along the southerly line of said WYA THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: N 68°49'42"W,339.65 feet to a fence post found; i N 78°11'08"W,384.05 feet to a fence post found; S 78°46'55"W,295.49 feet to a fence post found; S 72°37'24"W,627.49 feet to a fence post found; S 83°49'48"W,239.95 feet; N 81°33'35"W,83.79 feet; N 62'10'16"W, 178.76 feet; N 81°40'37"W,529.57 feet to a fence post found; C&B Job No.014367.010.001.0447 J:UOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 1 of 7 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 17 016391.00010:1041745.013 N 89°26'43"W, 1437.01 feet to a TXDOT monument found,the southwest corner of said WYA THE RANCH AT MARY'S CREEK,LTD.tract; THENCE along the westerly line of said WYA THE RANCH AT MARY'S CREEK,LTD. tract,the following bearings and distances: N 44°45'58"W,71.58 feet to a TXDOT monument found; N 00032'56"W,562.53 feet; THENCE N 85048'15"E, 1514.69 feet; THENCE N 87009'53"E,46.34 feet; THENCE S 86027'16"E,95.53 feet; THENCE S 78005'25"E,94.26 feet; THENCE S 70049'05"E, 106.81 feet; THENCE S 19059'58"W,119.12 feet to the beginning of a curve to the left; THENCE with said curve to the left,an arc distance of 104.46 feet,through a central angle of 11017'33"having a radius of 530.00 feet,the long chord of which bears S 14°21'11"W, 104.29 feet; THENCE S 08042'25"W, 137.06 feet; THENCE S 81059'04"E,494.11 feet; THENCE N 47038'34"E,,190.28 feet; THENCE N 30003'08"E, 137.47 feet; THENCE N 05039'40"E,22.14 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left,an arc distance of 113.11 feet,through a central angle of 129036'59"having a radius of 50.00 feet,the long chord of which bears N 00026'49'B,90.49 feet to the beginning of a reverse curve to the right; THENCE with said reverse curve to the right,an arc distance of 14.10 feet,through a central angle of 16°09'31"having a radius of 50.00 feet,the long chord of which bears N 56°16'54"W, 14.05 feet; THENCE N 75023'58"E, 157.00 feet; C&B Job No.014367.010.001.0447 J:\JOB\01457401\SUR\WP\LEG\4754—EXmudl.doc September 04,2007 Page 2 of 7 I MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 18 016391.00010:1041745.013 THENCE N 83024'16"E,350.00 feet; THENCE N 06035'44"W, 110.00 feet; THENCE N 83024'16"E, 15.00 feet; THENCE N 06035'44"W, 1400.02 feet; THENCE S 83024'51"W,55.99 feet; THENCE N 05040'55"W, 127.64 feet; THENCE N 65008'10"W,31.87 feet; THENCE N 65008'10"W,239.34 feet; THENCE S 65000'30"W, 131.35 feet; THENCE S 69016'09"W, 168.18 feet; THENCE N 24050'19"W, 1167.78 feet; THENCE S 65009'41"W,310.00 feet; THENCE N 24'50'19"W,405.32 feet; THENCE N 16010'32"W, 171.96 feet; THENCE N 07053'29"W,230.10 feet; THENCE S 86'17'21"W,96.81 feet; THENCE N 23'02'1 TV,84.57 feet; THENCE S 69039'33"W, 180.01 feet; THENCE S 57044'58"W,461.86 feet; THENCE S 70049'02"W,45.68 feet; THENCE S 71034'26"W,96.53 feet; THENCE S 87004'13"W,50.05 feet; THENCE N 89057'22"W, 198.26 feet to the beginning of a non-tangent curve to the left; C&B Job No.014367.010.001.0447 J:\JOB\01457401\SLTR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 3 of 7 MomingStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 19 016391.00010:1041745.013 THENCE with said non-tangent curve to the left,an arc distance of 203.73 feet,through a central angle of 08°38'47"having a radius of 1350.00 feet,the long chord of which bears N 14006'11"W,203.53 feet; THENCE N 18025'34"W, 1160.38 feet to the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 48.09 feet,through a central angle of 01 037'15"having a radius of 1699.86 feet,the long chord of which bears N 17°35'43"W,48.09 feet; THENCE N 89050'00"E,545.85 feet; THENCE N 89050'00"E, 154.99 feet; THENCE N 89029'09"E, 135.00 feet; THENCE N 76042'29"E9 46.11 feet; THENCE N 89038935"E, 133.71 feet; THENCE S 83040951"E9 42.67 feet; THENCE S 77004'10"E,42.67 feet; THENCE S 70026'l l"E,42.95 feet; THENCE N 220 14'49"E, 105.02 feet; THENCE S 67045'11"E,301.10 feet to the beginning of a non-tangent curve to the left; THENCE with said non-tangent curve to the left,an arc distance of 113.92 feet,through a central angle of 130032'26"having a radius of 50.00 feet,the long chord of which bears N 77009943"E,90.83 feet; THENCE N 22014'499'E,97.79 feet; THENCE S 67045'11"E,330.00 feet; THENCE S 59023948"E, 173.98 feet; THENCE S 32050'28"E, 139.36 feet; THENCE S 43024957"E,90.41 feet; THENCE N 41°06'56"E,112.29 feet to the beginning of a non-tangent curve to the left; C&B Job No.014367.010.001.0447 J:\JOB\01457401\SUR\WP\LEG\4754—EXmudl.doc September 04,2007 Page 4 of 7 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 20 016391.00010:1041745.013 THENCE with said non-tangent curve to the left,an arc distance of 94.00 feet,through a central angle of 107°42'58"having a radius of 50.00 feet,the long chord of which bears N 53°29'31'T,80.76 feet; THENCE N 41°06'56"E,136.88 feet; THENCE N 48053'04"W, 181.67 feet; THENCE N 40°42'12'T,204.56 feet; THENCE N 14'37'03"E,225.51 feet; THENCE N 07017'50"E,60.49 feet; THENCE N 00°00'00"E,545.00 feet; THENCE S 90°00'00'T,750.00 feet; THENCE S 00000'00"W, 170.00 feet; THENCE S 90000'00'T,820.00 feet; THENCE S 63026'15"E,55.90 feet; THENCE S 78041'24"E, 152.97 feet; THENCE S 90000'00'T, 180.71 feet; I THENCE S 37033'53"E, 129.89 feet to the beginning of a curve to the right; THENCE with said curve to the right,an arc distance of 36.14 feet,through a central angle of 41°24'34"having a radius of 50.00 feet,the long chord of which bears S 16'51'35'T,35.36 feet to the beginning of a reverse curve to the left; THENCE with said reverse curve to the left,an arc distance of 23.33 feet,through a central angle of 26°44'00"having a radius of 50.00 feet,the long chord of which bears S 09°31'17"E, 23.12 feet; THENCE S 13°41'36"W, 146.01 feet; THENCE S 25°22'44"E, 111.32 feet; THENCE S 20°50'19"W,25.00 feet; THENCE S 64033'52"E,139.53 feet; C&3 Job No.014367.010.001.0447 J:VOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 5 of 7 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 21 016391.00010:1041745.013 THENCE S 50027'56"E,51.97 feet; THENCE S 6801 1'35"E,123.38 feet; THENCE N 40014'35"E,80.41 feet; THENCE N 48°30'03"E,90.00 feet; THENCE S 71015'54"E,117.86 feet; THENCE S 63005'05"E,143.02 feet; THENCE S 00000'00"W,264.84 feet; THENCE N 89036'00"E,119.30 feet; THENCE S 81"03'37"E,51.32 feet; THENCE S 90°00'00E,120.00 feet; THENCE N 00000'00'T,340.00 feet; THENCE S 90000'00"E,170.00 feet; THENCE S 00000'00"W,19.64 feet; THENCE N 89036'00"E,541.14 feet; THENCE N 00000'00"E,750.02 feet; THENCE N 89036'00 T,73.55 feet to the beginning of a non-tangent curve to the right; THENCE with said non-tangent curve to the right,an arc distance of 43.25 feet,through a central angle of 49°33'56"having a radius of 50.00 feet,the long chord of which bears N 81010'36"E,41.92 feet; THENCE N 38052'39'B,65.14 feet; THENCE S 90000'00"E,121.22 feet to the POINT OF BEGINNING and containing 380.316 acres of land more or less. NOTE This document was prepared under 22TAC§663.21,does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property,except those C&B Job No.014367.010.001.0447 J:UOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 6 of 7 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 22 016391.00010:1041745.013 rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared, i C&B Job No.014367.010.001.0447 J:VOB\01457401\SUR\WP\LEG\4754_EXmudl.doc September 04,2007 Page 7 of 7 MorningStar Ranch MUD No. 1 r Exhibit C to Final Agreement Concerning Creation and Operation Page 23 0163 91.00010:1041745.013 Exhibit C Map of Original Commercial Property MUD NO.2 MUD r. (� Go�o w N N M M w TRACT 3 MUD NO.1 OLD WEATHERFORD ROAD N ORIGINAL COMMERCIAL WE PROPERTY s cmew Binves,r EXHIBIT _ JOB # 014574 DATE: 8.27.07 DRAWN: J5T DESIGNED: I C DGN=g•\1oD\014367\civ\EXHIBITS\20070713 - H&L\SPA - Exh C3.3hT Copyright 02007 by Carter a Burgess,Inc. .................-----------.------ --- ...._-.-"--.__--....... _---.----.--------- ----- _....._. ..._....-__..-_._..._ ....... .._.... MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 24 016391.00010:104)745.013 Exhibit D Legal Description of Original Commercial Property EXHIBIT"D" LEGAL DESCRIPTION COMMERCIAL TRACT 3 10.841 ACRES BEING a tract of land situated in the P.J.McClary Survey,Abstract No.907,Parker County, Texas and being a portion of that tract of land as described by deed to WYA THE RANCH AT MARY'S CREEK,LTD.and recorded in Book 2463,Page 618,Deed records,Parker County, Texas,and being more particularly described by metes and bounds as follows: COMMENCING at a Texas Department of Transportation(TXDOT)monument found at the southerly southwest comer of said WYA THE RANCH AT MARY'S CREEK,LTD.pact; THENCE N 80°04'22"E, 117.62 feet to the POINT OF BEGINNING; THENCE N 00°02'38"E,605.67 feet; THENCE N 85°48'15"E,746.67 feet; THENCE S 00047'06"W,670.45 feet; THENCE N 89°12'54"W,736.02 feet to the POINT OF BEGINNING and containing 10.841 acres of land,more or less. NOTE This document was prepared for informational purposes only and does not reflect the results of an on the ground survey,and is not to be used to convey or establish interests in real property. C&B Job No.014574.010.001.0447 J:\1OB\01457401\SUR\WP\LEG\COMMERC3.DOC August 31,2007 Page 1 of 1 MorningStar Ranch MUD No. 1 Exhibit C to Final Agreement Concerning Creation and Operation Page 25 016391.00010:1041745.013 Exhibit D STATE OF TEXAS COUNTY OF PARKER NOTICE CONCERNING ANNEXATION AND SERVICES The real property described in Exhibit A attached hereto and incorporated herein is located in MorningStar Ranch Municipal Utility District No. 1 of Parker County (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 full purposes upon the earliest to occur of: (1) Dissolution of the District; or (2) . , 20_ . [insert date 15 years after effective date of Development Agreement] For additional information concerning potential annexation of the District, contact the City of Fort Worth Development Director. MORNINGSTAR RANCH MUNICIPAL UTILITY DISTRICT NO. 1 OF PARKER COUNTY By: Name printed: Title: MorningStar Ranch MUD No. 1 Exhibit D to Final Agreement Concerning Creation and Operation Page 1 016391.00010:1041745.013 STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me, on the day of , 200i, by , President, of the Board of Directors of MorningStar Ranch Municipal Utility District No. 1 of Parker County, on behalf of said District. Notary Public, State of Texas Printed Name: My Commission Expires: [SEAL] After recording, return to: City Attorney City of Fort Worth 1000 Throckmorton Fort Worth, Texas 76102 MorningStar Ranch MUD No. 1 Exhibit D to Final Agreement Concerning Creation and Operation Page 2 016391.00010:1041745.013 Exhibit E ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("Assignment") is made and entered into as of the day of , between a ("Assignor"), and , a ("Assignee") (Assignor and Assignee are hereinafter sometimes collectively referred to as the "Parties " and singularly as a"Party"). RECITALS: A. Assignor is the owner of the rights of Owner under that certain "Agreement Concerning Creation and Operation of City of MorningStar Ranch Municipal Utility District No. 1 of Parker County" (City Secretary Contract No. 36198, M & C-22562) (the "Agreement") effective as of , 2007, among WYA The Ranch at Mary's Creek, Ltd. ("Owner"), the City of Fort Worth, Texas (the "City"), and MorningStar Ranch Municipal Utility District No. 1 of Parker County (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 hereto (the"Transferred 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, THEREFORE, 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. Certain Defined Terms. Unless indicated otherwise herein, capitalized terms in this Assignment shall have the same meanings 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, and Assignor is hereby released from all such obligations and liabilities from and after the effective date of this Assignment; provided, however, this Assignment does not release Assignor from any liability 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. MomingStar Ranch MUD No. 1 Exhibit E to Final Agreement Concerning Creation and Operation Page 1 016391.00010:1041745.013 4. Governing Law. THIS ASSIGNMENT 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. 5. Counterpart/Facsimile Execution. This Assignment may be executed in multiple counterparts, each of which shall be deemed to be an original. 6. Notice to City. A copy of this Assignment shall be provided to the City within fifteen (15) days after execution. 7. Binding Effect. This Assignment shall be binding upon and shall inure to the benefit of Assignor and Assignees and their respective heirs, personal representative, successors, and assigns. EXECUTED as of the day and year first written above. ASSIGNOR: By: Printed Name: Title: ASSIGNEE: By: Printed Name: Title: MorningStar Ranch MUD No. 1 Exhibit E to Final Agreement Concerning Creation and Operation Page 2 016391.00010:1041745.013 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 MorningStar Ranch MUD No. 1 Exhibit E to Final Agreement Concerning Creation and Operation Page 3 016391.00010:1041745.013 Page 1 of 2 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 12/4/2007 - Resolution No. # 3560-12-2007 & 3561-12-2007 DATE: Tuesday, December 04, 2007 LOG NAME: 06MORNING STAR REFERENCE NO.: C-22562 SUBJECT: Authorize Execution of the Consent Resolutions, Development Agreements and Utility Agreement, and to Bring Forth the Strategic Partnership Agreements after the Formation of Each District for the Morning Star Ranch Municipal Utility District No. 1 and No. 2 RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager or a designee to bring forth the Strategic Partnership Agreements for each District after the formation of the Municipal Utility District; 2. Authorize the City Manager or a designee to execute: a. Development Agreements for each District between the City and WYA The Ranch at Mary's Creek, LTD., a Texas limited partnership of WYA The Ranch Holdings, LLC, its general partner ("Developer"); b. A Utility Agreement between the City and Developer; 3. Adopt resolutions consenting to the creation of Morning Star Municipal Utility Districts No. 1 and No. 2 of Parker County ("Districts"). DISCUSSION: WYA The Ranch at Mary's Creek, LTD., a Texas limited partnership of WYA The Ranch Holdings, LLC, its general partner, own and intend to develop approximately 737 acres in Fort Worth's extra-territorial jurisdiction in Parker County. They petitioned the City and were granted conditional consent on May 9, 2006, (M&C G-15195 and G-15196), to form two municipal utility districts in this development. The developer has made application to the Texas Commission on Environmental Quality to form these Districts. In addition, they will be seeking road powers during the 2009 Texas legislative session. The attached resolutions grant formal consent to the formation of the Districts and specifically grant to the Districts the authority to finance road projects. In addition, it grants the City Manager the authority to execute the "Agreement Concerning Creation and Operation of Morning Star Municipal Utility District No. 1" and "Agreement Concerning Creation and Operation of Morning Star Municipal Utility District No. 2" (the Consent Agreements). This is the contract between the developer, the District, and the City governing the issuance of bonds, the construction standards for infrastructure and the terms of future annexation. The other documents listed above, which are available for public inspection and copying in the City Secretary's Office, can be summarized as follows: The Development Agreements provide for the enforcement of municipal building codes and establishes land use and development regulations for the development. In addition, it imposes Special Regulations to govern design issues such as block lengths, street right-of-way and sidewalk widths. The development will http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/1/2008 Page 2 of 2 generally be in compliance with the development standards within the City limits. The Agreement also identifies enhancements beyond the City's regulations in terms of amenities, entry febtur,es and landscaping. The Utility Agreement relates to the provision of water and wastewater facilities and service to the development. Under this Agreement the City will acquire the water and sewer Certificates of Convenience and Necessity (CCN). The Owner agrees to install approximately 7,400 linear feet of 24-inch offsite water main as part of Phase 1 and approximately 16,900 linear feet of 24-inch offsite water main as part of Phase 2. Within the development, the Developer will install a parallel water system consisting of a potable water system and a non-potable irrigation system. Initially both systems will be served by wells within the development and operated by the District. Once Fort Worth water becomes available, the potable water system will convert to Fort Worth supplied water and the irrigation system will continue to be served by wells and operated by the district. Ultimately the plan is for the Water Department to acquire both systems and provide reuse water to serve the irrigation system in lieu of the wells. Future phases of the development will require conversion of a portion of the development to the Westside V pressure plane. The Developer is agreeing to contribute $600,000 toward the cost of the extension of the 20-inch Westside V water main, elevated storage tank and pump station. The Agreement also provides for retail wastewater service to be provided to the development by Fort Worth. The Developer will construct approximately 14,000 linear feet of 24-inch offsite sewer main to serve the development. The City will collect the maximum allowable water and waste water impact fees to cover the costs of providing service to the development. There is no City cost-participation in the installation of the offsite lines or in the acquisition of the potable water system, irrigation system or wastewater system from the District. The Strategic Partnership Agreements will authorize the City to annex acreage within the Development designated for commercial development for the limited purpose of imposing sales and use tax. These agreements will be presented to the City Council with the appropriate public hearings after the district is formally established by election. This Development will not require the expenditure of City funds or the collection of offsetting revenue for water services for several years. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that approval of these Agreements will have no immediate material effect on City funds. Any effect on expenditures and revenues will be budgeted in future fiscal years. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Dale Fisseler (6266) Originating Department Head: Fernando Costa (8042) Additional Information Contact: Susan Alanis (8180) http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/1/2008 K&L I GATES Kirkpatrick&Lockhart Prestao Gates Ellis up 301 Commerce Suite 3000 Fort worth,TX 76102-4136 1817.347.5270 www,klgates.com Marcella L.Olson February 14, 2008 Q 81 347.s299 marcellaolson@klgates.com Sarah Fullenwider Assistant City Attorney City of Fort Worth 1000 Throckmorton Street Fort Worth,Texas 76102 By e-mail Re: MorningStar Ranch Dear Sarah: Attached are the following pages for insertion in the documents approved by the City Council for Morningstar Ranch on December 18, 2007 (M & C C-22562) in order to insert dates based on the January 29,2007 effective date of the Development Agreement: 1, Pages 4 and 13 of the Agreement Concerning Creation and Operation of Morningstar Ranch Municipal Utility District No. 1 of Parker County(City Secretary Contract No. 36198)(revision of definition of"Filing Date" and Section 10.05); and 2. Pages 4 and 13 of the Agreement Concerning Creation and Operation of MorningStar Ranch Municipal Utility District No. 2 of Parker County (City Secretary Contract No. 36199)(revision of definition of"Filing Date" and Section 10.05); and 3. Page 5 of the Development Agreement Between the City of Fort Worth, Texas and WYA The Ranch at Mary's Creek, Ltd. for MorningStar Ranch (City Secretary Contract No. 36202) (revision of definition of"Filing Date") I will substitute these pages in the originally executed document in my possession. Please substitute these pages in the documents on file in the City Secretary's Office. I have spoken to Allison Gray concerning my client's obligation to file the Development Agreement in the Parker County property records, pursuant to Section 9.04 of the agreement. I will pick up Allison's originally executed Development Agreement, substitute the pages noted above, and file the document in the property records, with the original document to be returned to Allison after it is filed. DALLAS-1084147 vl 016391-00010 K&L I GATES February 14,2008 Page 2 Thanks for your help in wrapping up this matter. Very truly yours, Marcella Olson Attachments MOlpmk C: Chris Ross Allison Gray DALLAS-1084147 v l 016391-00410 incorporate any of the Property or seeking to include any of the Property wit ' the boundaries of any other incorporated entity. 10.03 Notice. Within thirty (30) days after the District Confi ation Date, the District shall file in the real property records of Parker County: (a) a not' a in the form required by Section 49.452 of the Water Code; and (b) a notice in the form f Exhibit D attached to this Agreement stating that the City has the authority to annex the strict subject to the limitations set forth in Section 10.05. 10.04 Annexation of Portions of Property. Ow r and the District agree to cooperate with and assist the City in annexing one or more areas n the manner prescribed by law which does not result in the dissolution of the District, each f which may not exceed 525 feet in width at its widest point or such other width limitation bsequently imposed by law, as reasonably necessary for the City to connect areas to the Cit that are outside the District and that the City intends to annex. The City agrees that such ar s shall be located within right-of-way areas or along lot lines whenever possible. Notwiths riding the zoning designation approved for the annexed area, such area can be develope and used in accordance with the Development Agreement. 10.05 Full P ose Annexation The City :11 )annex the Property for full purposes any earlier than the first to occur of. ) the dis 1 of the District (other than as a result of annexation by the City); or (b) , which is 15 years after the effective date of the Development Agreement. , 10.06 Limited Purpose nnexation. a Parties agree that the City shall have the right to annex those portions of the P operty that are intended for development for the sole and limited purpose for the City to impo�e 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 forth in 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; provided, however, if the creation of the District has not been confirmed at an election conducted on or before June 1, 2010, this Agreement may be terminated by the City by providing Notice to Owner. ARTICLE XII BREACH, NOTICE AND REMEDIES 12.0 f. 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. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 13 016391.00010:1041745.013 "ETJ" means the extraterritorial jurisdiction of a city as defined by the ocal Government Code, as amended, with the City's ETJ being an unincorporated area pre ently extending five miles from the City's corporate limits, excluding other incorporated nicipalities and their respective ETJs. "Filing Date" means July 24, 2006, the date on which th application for approval of preliminary plat PP-06-039 (which was approved by the City's P n Commission on August 23, 2006) was submitted to the City. If PP-06-039 expires, "Filing ate" shall be deemed to be the same date as the Effective Date of the Development Agreeme , subject to progress made toward completion of the Project. For purposes of this section, "Pr ect" means the development of the Property in accordance with this Agreement. If no progr s is made toward completion of the Project by , 2013/file the "Fill Date" shall be deemed to be the date the first permit application relatingPr sect is filed with the City after , 2013. For purps ction, "progress" includes any one of the following: (a) an application for a finallan is submitte o a regulatory agency, including without limitation the Cit -\ (b) a good-faith attempt is maith a reg 1 bry agency, including without limitation the City, an applicationmit nec s� to begin or continue towards completion of the Project; (c) costs have been incurred fong the Project including, without limitation, costs associated with roadway, uti ity and other infrastructure facilities designed to serve, in whole or in part (but exclusi e of land acquisition) in the aggregate amount of five percent of the most recent appra' ed market value of the Property; (d) fiscal security isIntenance with a regulatory agency, including without limitation the City,to ensure performn obligation required by such regulatory agency; or (e) utility connectior impact fees for the Project have been paid to a regulatory agency, inclhout limitation the City. "Finance Director" meairector of the City's Finance Department. "Governing Regulations all City ordinances, regulations, policies, manuals and other requirements relating tocture, including without limitation the design, location, construction, operation and ma thereof, that were applicable within the City's corporate limits on the Filing Date. Tte ' her, "Governing Regulations" includes all amendments to the foregoing requirements andnewrequirements relating to Infrastructure that are adopted or approved after the Filing D except any amendments from which the Property is exempt pursuant to Chapter 245 of the local Government Code. "Groundwater S st in" means irrigation wells, drinking water wells, storage ponds, tanks, pump stations, distri Lion lines and meters designed and constructed to serve the Property with groundwater. MorningStar Ranch MUD No. 1 Final Agreement Concerning Creation and Operation Page 4 016391.00010:1041745.013