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HomeMy WebLinkAbout1997-2286 - Ordinance - 12/11/1997ORDINANCE NO. 2286 AN ORDINANCE DESIGNATING THE JONES BUTLER ROAD - LUTHER STREET WEST - MELROSE APARTMENT TRACT AREA IN COLLEGE STATION TEXAS AS REINVESTMENT ZONE NO. 4, CITY OF COLLEGE STATION TEXAS ENUMERATING THE QUALIFYING CRITERIA, ADOPTING A PRELIMINARY DEVELOPMENT AND FINANCING PLAN, ESTABLISHING A BOARD OF DIRECTORS FOR SUCH ZONE, AND OTHER MATTERS RELATING THERETO; PROVIDING FOR A SEVERABILITY CLAUSE AND AN OPEN MEETINGS CLAUSE. WHEREAS, the City of College Station gave notice on the 3rd day of October, 1997, to the taxing units, College Station Independent School District and Brazos County, of its intent to consider the implementation of a tax increment financing district, a reinvestment zone, in the area of the Jones-Butler - Luther St. West area; and provided more than sixty (60) days notice of a meeting to be held on December 11, 1997 at the City of College Station. WHEREAS, the College Station City staff met with designat.ed representatives.from the C,.ollege Station Independent School District and Brazos County and these meetings took place to mscuss the implementation of Reinvestment Zone No. 4; WHEREAS, on November 17, 1997, City staff made a formal presentation to the College Station Independent School District Board of Trustees concerning the Reinvestment Zone. WHEREAS, the Board of Trustees previously approved participation in the Reinvestment Zone; WHEREAS, on December 1, 1997, notice of a public hearing to be held on December 11, 1997 was published in the Bryan-College Station Eagle, said notice being attached hereto as Exhibit WHEREAS, a public hearing was held before the College Station City Council on the 1 lth day of December, 1997, at 7:00 p.m. at the regular meeting of the Council; WHEREAS, upon such public hearing being convened, there was presented proof and evidence that notice of such hearing had been published and had been mailed as described above; WHEREAS, the City Council at such hearing invited any interested person to appear and contend for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory, which is described by metes and bounds description attached hereto as Exhibit "C" and depicted in the diagram attached to the Preliminary Project and Finance Plan, should be included in such proposed reinvestment zone, the concept of tax increment financing, and the creation of a board of directors for the proposed reinvestment zone; WHEREAS, all owners of property located within the proposed reinvestment zone and all other taxing units and other interested persons were given the opportunity at such public hearing to protest the creation of the proposed reinvestment zone or the inclusion of their property in such reinvestment zone; WHEREAS, the City staff presented the preliminary financing and development plan for the proposed reinvestment zone attached hereto as Exhibit "B" and; WHEREAS, the proponents of the reinvestment zone offered evidence, both oral and documentary, in favor of the foregoing matters relating to the creation of the reinvestment zone; jc~c:kiecl l~-inx~.4 doc 12/18/97 ORDINANCE NO. 2286 Page 2 NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of College Station, Texas, that: The facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. Il. The City, after conducting such hearing and having heard such evidence and testimony and considering the preliminary project and financing plan, has made the following findings and determination, based upon the evidence and testimony presented to it: A. That the public hearing on adoption of the reinvestment zone has been properly called and held and conducted, and that notice of such hearing has been published as required by law and mailed to all taxing units overlapping the territory inside the proposed reinvestment zone. Do That the City has jurisdiction to hold and conduct this public hearing on the creation of the proposed reinvestment zone pursuant to the Tax Increment Financing Act. That creation of the proposed zone with boundaries as described in Exhibit "C" will result in benefits to the City, its residents and property owners, and to the property, residents and property owners in the reinvestment zone. That the reinvestment zone as described in Exhibit "C" meets the criteria for the creation of a reinvestment Zone as set forth in the Texas Tax Increment Financing Act (Chapter 311 et. seq., TEX. TAX CODE ANN. [Vernon 1997]) in that: (1) It is a contiguous geographic area located wholly within the corporate limits of the City. (2) As required by the Act, not more than ten percent (10%) of the property in the zone is used for residential purposes. (3) The total appraised value of al I taxable real property in the Zone according to the most recent appraisal rolls of the City, tog~her with the total appraised value of the taxable real property and al 1 other tayang existing reinvestment zones within the City, according to the most recent appraisal rolls of the City, does not exceed fii~een percent (15%) of the current total appraised value of the taxable reai property in the City. (4) Improvements in the reinvestment zone will enhance significantly the value of all taxable real property in the reinvestment zone. (s) That a preliminary project plan and a financing plan have been developed and are attached hereto as Exhibit "B". Such preliminary project and financing plans would be the basis for the master plan for the final financing and development jc~c:~decl I k, minvst4.doe 12/18/97 ORDINANCE NO. 2286 Page 3 (6) (7) plans for the reinvestment zone and shall assist the staff and board of directors in implementing a successful reinvestment zone. On January 23, 1997, Integroup, Inc. petitioned the City Council of College Station that the area described in Exhibit "C' be designated as a Reinvestment Zone and the City Council entered into a development agreement with/ntegroup, Inc. through which agreement the City agreed to establish and designate the Reinvestment Zone. A copy of the agreement is included in the attached Preliminary Project and Financing Plan. Integroup, Inc. is the property owner of more than fifty percent (50%) of the appraised value of the property in the proposed Reinvestment Zone. That unpaved streets in the area are inadequate for development of the area. Therefore, Reinvestment Zone No. 4 is hereby established pursuant to Section 311.005 (a) (1) (B) oftbe Tax Increment Financing Act. (s) That the following Council Members were present and considered the ordinance on December 11, 1997: lynn Mrll h~ney; Larry Mariott Steve Esmond David Hickson Hubbard Kennady~ Mayor Pro Tem Dick Birdwell Swiki Anderson III. That the City hereby creates a reinvestment zone over the area described by the metes and bounds description in Exhibit "C" attached hereto and such reinvestment zone shall be based on the preliminary project and financing plans. This zone shall hereat'~er be identified as Reinvestment Zone No. 4, City of College Station, Texas (the "Zone"). The Board of Directors for the Zone shall consist of five (5) member directors. The City Council of the City of College Station shall appoint three (3) members who shall meet the eligibility requirements as set forth in the Act to serve on the Board of Directors. The School District shall appoint one (I) member who shall meet the eligibility, requirements set forth in the Act to serve on the Board of Directors. The Brazos County Conumssloners Court shall appoint one (1) member who shall meet the eligibility requirements as set forth in the Act to serve as a member of the Board of Directors. The School District member, the Brazos County Commissioners Court member and one (1) member appointed by the City of College Station, shall serve an initial two (2) year term while the other two (2) appointed by the City of College Station shall serve initial je~c:~leel l~v~.4.doc 1~2/1g~)7 ORDINANCE NO. 2286 Page 4 one (1) year terms. Ail subsequent appointments will be made for two (2) staggered terms or until a successor director may be appointed thereafter. The City Council shall designate one (1) member to serve as Chairman of the Board of Directors for the year ending December 31, 1998, and each year thereat~er, and authorizes the Board to elect from its members a Vice-Chairman and other officers as it sees fit. The Board shall retain all powers provided it in the Act. The Board of Directors shall make recommendations to the City Council concerning the administration of the Zone and shall prepare and cause to be prepared and adopt a Project Plan based upon the preliminary Financing and Development Plans for the Zone and must submit such plans to the City Council for its approval. The City hereby delegates to the Board of Directors all powers necessary to prepare and implement such Project Plan, subject to approval by the City Council, including the power to direct the staff and employ consultants to assist in the preparation of the Project Plan and in the issuance of tax increment obligations. That operation of the Zone shall commence on January 1, 1998, and that termination of the operation of the Zone shall occur on December 31, 2002, or at a time designated by subsequent ordinance or at such time subsequent to the issuance of tax increment bonds as all project costs and tax increment bonds, and the interest thereon, have been paid in full or upon the payment of all costs set forth in the Development Agreement executed by the City of College Station, Texas, and Integroup Inc. on the 28th of January, 1997,. That the tax increment base for the Zone, which is the total appraised value of all taxable real property in the reinvestment zone, is to be determined as of January 1, 1998, the year in which the Zone was designated as a reinvestment zone. That there is hereby created and established a Tax Increment Fund for the Zone which may be divided into such sub-accounts as may be authorized by subsequent ordinances into which ali tax increments are to be deposited. The Tax Increment Fund and any sub-accounts are to be maintained at the depository bank of the City and shall be secured in the manner prescribed by law for Texas cities. The tax increments shall equal the amount of property taxes levied for a year on the captured and appraised value, that is, the amount by which the current appraised value of all taxable real property located in the Zone exceeds its tax increment base less any other funds which are to be allocated from the tax increments pursuant to the Act. All revenues from the sale of any tax increment finance bonds and notes bereal~er issued by the City may be deposited into such fund or sub-account from which money will be disbursed to pay project costs for the Zone or to satisfy the claims of holders of tax increment bonds or notes issued for the Zone. j¢~decl I ~inv~4.doc 12/18/97 ORDIN~S,2~ICE NO. 2286 Page s VIII. That if any section, paragraph, clause, or provision of this ordinance shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause or provision shall not affect any of the remaining provisions of this ordinance. IX. That it is hereby found, determined and declared that a sufficient written notice of the date, hour, place and subject of the meeting of the City Council of the City of College Station at which this ordinance was adopted was posted at a place convenient and readily accessible at all times to the general public at the City Hall of the City of College Station for the time required by law preceding this meeting, as required by the Open Meetings Act, and that this meeting has been open to the public as required by law, at all times during which this ordinance and the subject matter hereon has been presented, discussed, considered and finally acted upon. The City Council of the City of College Station further ratifies, approves and confirms such written notice and the contents and posting thereof. That the contents of the notice of public hearing, which hearing was held before the City Council of the City of College Station on December 11, 1997, and the publication of said notice, is hereby ratified, approved and confirmed. PASSED and APPROVED on this the 1 lth day of December, 1997. APPROVED: LYN'N McILHANEY, Mayo[k' ATTEST: j¢~c:kiocl 1 ~invst4.doc 12/18/97 EXttlB I T - A (Legal Notice as it appeared in the Bryan-College Station Eagle Monday, December 1, 1997) The Bryan-College Station Eagle Monday, December 1, 1997 NOTICE OF PUBLIC HEARING The College Stahon C~ty Councd wdl nold a public heanng to cons~cler an ordi- nance des~gnal~ng approxi- mately 52 3 acres of the Melrose Subd~ws*on Plat, and adlacenf Jones Bullet and West Luther hghts-of- ways, generally located at Ihe mtersecl~on of Jones- Butler Roa~l and West Lu- Iher Street in College Sta- bon, as Remvestment Zone ;It4 lot a Tax Increment F,- nanc~ng D~slnct as prowded , m the Tax Increment F~nanc- img Act, This pubhc heanng will d~scuss the creabon of the zone and ds benehts Io Ihe mumc~pahty and olher matters relaled thereto At the heanng an interested person may speak for or agmnst the creabon ol Ihe zone, ds boundaries, or the concept of lax sncrement h- nancmg The heanng w~ll be held at the City Councd Chamber al College Stabon Cdy Hall, at 1101 Texas Avenue, College Stabon, Texas at 7:00 p m on Thursday, December 11, 1997 Any request lot s~gn inter- pret,ye services Ior the hear- lng Impaired must be made 48 hours before the meeting To make arrangements call (409) 764-3547 or (TDD) 1- 800-735-2989 For adddional inlormation, please contact Gustavo Ro- man. Staff Planner, City of College Statmn Develop- ment Services at (409)764. 357O 12-1-97. 12-2-97 EXHIBIT - B TAX INCREMENT FINANCING REINVESTMENT ZONE No. 4 City of College Station MELROSE PROJECT Preliminary Project Plan Preliminary Financing Plan City of College Station October, 1997 TABLE OF CONTENTS INTRODUCTION .............................................................................................. 03 Eligible Project Costs ................................................................................. 03 Project Summa~ ....................................................................................... 04 S~ ........................................................................................... 05 Water/Wastcwater ......................................................................... 05 Area Description ....................................................................................... 0:5 Figure ! - Location Map ................................................................ 06 PRELIMINARY PROJECT PLAN ................................................................... 07 Area Property Conditions ........................................................................... 07 Current Uses of Real Property ................................................................... 07 Table I - Land Use ................................................................................... 07 Proposed Improvements .............................................................................. 07 Comprehensive Plan/Zon~ ....................................................................... 08 PRELIMINARY FINANCING PLAN ................................................................ 09 Project Ideatity .......................................................................................... 09 ~ Project Costs ............................................................................. 09 Economic Feasibility ................................................................................. 09 Assessed Value ............................................................................. 09 Table 2 - Comparable Assessed Value .......................................... 10 Table 2A - Property Comparison .................................................. 10 Taxing Units ................................................................................ 10 Captured Value & Increment Proje~on ........................................ 11 Table 3 - Captured Value-Projection ............................................. 11 Tax lncrom~nt Bonds ................................................................... 12 FINANCIAL STRUCTURE .............................................................................. 12 Project Duration ....................................................................................... 12 Table 4 - TIF Participation Schedule ........................................................ 13 Minimum Required Projoc-t Value ............................................................. 13 Appendix A - Description of Reinvestment Zone ................................................... 14 -Tract 1 Description ................................................................... 15 - Tract 2 Description ................................................................... 20 - Tract 3 Description ................................................................... 20 Appendix B - Property Ownership ........................................................................ 21 Plan ......................................................................................................... 22 Listing ..................................................................................................... 23 Appendix C - Cost Estimate ................................................................................. 24 Appendix D - Proposed Project Plan ..................................................................... 26 Phaso 1 Proposed Plan ............................................................................. 27 Phase 2 Proposed Plan ............................................................................. 28 Appendix E - Development Agreement ................................................................. 29 2 TAX INCREMENT FINANCING REINVESTMENT ZONE No. 4 CITY OF COLLEGE STATION MELROSE PROJECT Introduction: The concept of Tax Increment Financing in the State of Texas is authorized under the Texas Tax Increment Financing Act. This act allows the governing body of a municipality to designate, by ordinance, a contiguous geographic area in its jurisdiction as a reinvestment zone. Simply stated, TIF is a method of funding public investments in an area by "capturing" all or a portion of increased tax revenues resulting from increased ad- valorem property values in the district and placing the revenue generated from these captured taxes into a special fund. This fund can then be used to finance expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by the municipality as well as the costs of public works or public improvements in the zone, plus other costs incidental to those expenditures and obligations as permitted under the law. This is particularly attractive to city governments since other taxing authorities, such as counties or school districts may be asked to contribute to the fund, and that fund is ordinarily under the control of the municipality. Eligible Project Costs: Project costs that are eligible for financing under the Tax Increment Financing Act include: (A) capital costs, including the actual costs of the acquisition and construction of public works, public improvements, new buildings, structures, and fixtures; the actual costs of the acquisition, demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures; and the actual costs of acquisition of land and equipment and the clearing and grading of land; (B) fmano'mg costs, including all interest paid to holders of evidences of indebtedness or other obligations issued to pay for project costs and any premiums paid over the principal amount of obligations because of the redemption of the obligations before maturity; (C) real property assembly costs; (D) professional service costs, including those incurred for architectural, planning, engineering, and legal advice and services; (E) imputed administrative costs, including reasonable charges for the time spent by employees of the municipality in connection with the implementation of a project plan; (F) relocation costs; (G) organizational costs, including the costs of conducting environmental impact studies or other studies, the cost of publicizing the creation of the zone, and the cost of implementing the project plan for the zone; (II) interest before and during construction and for one year a~r completion of construction, whether or not capitalized; (I) cost of operating the reinvestment zone and project facilities; (~) the amount of any contributions made by the municipality from general revenue for the implementation of the project plan; and (K) payments made at the discretion of the governing body of tho municipality that the municipality finds necessary or convenient to the creation of the zone or to the implementation of the project plan for the zone. Project Summary.: INTERGROUP Inc. has proposed to develop an approximately 40.2 acre multi-family project out of the proposed 52.3 acre Melrose Subdivision Plat, which is located at the intersection of Jones-Butler Road and West Luther Street in College Station, Texas. The existing area infrastructure, particularly the streets, water, and wastewater services, are inadequate for the proposed type and density of residential development. While the City of College Station has a Capital Improvement Plan for upgrading such infrastructure, higher priority streets and utilities will require the immediate use of our Capital Improvement Plan funds. Typically, but not in all cases, development has pa/d the costs for such improvements when development occurs prior to improvements through C]P projects. These improvements are determined through engineering studies of the surrounding area and the effects of the pwposed development on these areas. It is not the City's policy to subsidize development in any way except to provide oversize participation to elements of the infrastructure so that any future development in the vicinity will have access to adequate services. The Reinvestment Zone will consist of three tracts (see Figure 1). Tract 1 consists of the property owned by the developer upon which will be constructed the proposed Melrose Project Site. Tract 2 consists of the right-of-way of Luther Street west from the right-of-way of Marion Pugh Drive to the right-of-way of State Highway F.M. 2818. Tract 3 consists of the right-of-way of Jones-Butler Road from the right-of-way of Holleman Drive West to the right- of-way of Luther Street West. A preliminary study of the area has found that this area qualifies under the Texas Tax Increment Financing Act by 1) being a predominantly open area and 2) the effected property owners have requested that the area be designated a Reinvestment Zone for Tax Increment Financing (TIF District). Infrastructure: Both Jones-Butler and Luther Streets are unimproved gravel roads at this time. The City's current thoroughfare plan calls for Southwest Parkway to extend through the center of the prope~j as a minor arterial (56 ft. Street, 80 ft ROW) and for Jones-Butler to be upgraded to a collector street (38 ft. Street, 60 ft. ROW). In the proposed thoroughfare plan now being considered, Southwest Parkway and Jones-Butler have switched their street classifications such that Southwest Parkway is shown as a collector and Jones-Butler as a minor arterial that will eventually extend through to George Bush Drive. It is also the City's policy to require developers to extend water and wastewater utilities through ~heir sites so that ~he next adjoining property has access to the system without disturbing ~he existing property's improvements. In ~his case, sewer service to the Melrose Apartments site is to be provided from the south side of the development. Since there are at least two ou~parcel lots encompassed by the development, sewer service to the lots would effectively be cut off if sewer lines and easements were not provided through the site. ~n the case of water service, a 12" line is needed, so increasing the line to 16" is an acceptable oversize participation project. City/CSISD TIF Participation The City can consider $200,000 in oversize participation in infrastructure improvements in 1998 with TIF funded reimbursements for infrastructure development limited to $50,000 per year for three years for a total participation of S3S0,000. The College Station Independent School District will participate in the Tax Increment Finance District with a maximum total contribution of $350,000 to be paid over a term not to exceed ~hree years. The total participation by the City of College Station and the College Station Independent School District is $700,000 over 3 years. The Developer will construct all of the offsite and oversize improvements at its own cost and be reimbursed pursuant to the time tables set in the Development Agreement (Appendix E). Area Description: The area under consideration as a tax increment reinvestment zone is described (metes and bounds) in Appendix A. This area can generally be defined as the area bounded by and including the respective rights-of-ways of Jones-Butler Road on the north-east, West Luther Street to the north-west, and the Walden Pond Apa~iments to the south-east. The bounctaries of the Zone are reflected in Figure 1. Property ownership according to the records of the Brazos County Appraisal District as of September 15, 1997 is shown in Appendix B. $IT~ ~LLA~ PRELIMINARY PROJECT PLAN: The Texas Tax Increment Financing Act requires that a project plan be prepared by the Reinvestment Zone Board of Directors. The Project Plan must include 1) a map showing existing conditions, 2) uses of real property in the Zone, 3) proposed improvements and 4) proposed changes in city codes and master plans. A preliminary project plan, including the information required for the final project plan, has been established and is below. Area Property. Conditions: An on-site inspection of the area was conducted to document the current conditions of real property and structures in the area. Building conditions were evaluated and graded on the following basis: · Excellent - No visible need of repair or improvement; · Good - Appears to be structurally sound with visible need of minor repairs; · Poor - Structure has visible need of major repairs; · Dilapidated - Structure has visible serious defects, repair or improvement does not appear structurally or economically feasible. Two seriously dilapidated structures are found on the property which have serious visible defects and are structurally unsound and need to be demolished. No other structures are present in the proposed reinvestment zone. Current Uses of Real Property.: The proposed Reinvestment Zone is predominantly open. An analysis of land use within the zone indicates that 100% of the area is open and undeveloped. Two dilapidated structures are present in the zone. Land use in the Zone is given in Table 1. TABLE 1 Existing L~nd Use Residential 0 % Undeveloped/Vacant 100 % Institutional 0 % Commercial 0 % Proposed Improvements: The cost estimates associated with all improvements are given in Appendix C. A schematic master plan for the Zone is reflected in Appendix D. 7 Comprehensive Plan/Zoning: The improvements recommended in the Melrose Project are in accordance with the Comprehensive Plan for the City of College Station. On luly 11, 1996, the City of College Station City Council approved the rezoning of the six designated tracts to an R-5 Apartment/Medium Density Category. This district provides land for development of apartment and condominium units at medium densities. This district may serve as a transitional zone between residential areas and non-residential areas. This R-5 zoning is contingent on the developer, INTERGROUP Inc., entering into a Development Agreement with the City of College Station to: · Upgrade Luther Street to Marion Pugh; · Upgrade Jones-Butler Road from Holleman to Luther; · Make any necessary downstream sewer improvements with cost participation to be negotiated; · Take access from both Southwest Parkway and Luther; and, · Limit density ofthe project to 660 units. Without all five of these conditions being met, the rezoning of the property is not effective and the property cannot be developed in the manner being proposed. The executed Development Agreement can be found in Appendix E. PRELIMINARY FINANCING PLAN: The Tax Increment Financing Plan for Reinvestment Zone No. 5, City of College Station, identifies the project to be accomplished and the monetary relationships which accompany the project for funding and ultimately paying for the improvement. ,Project Identity: The Melrose Reinvestment Zone has been proposed as set forth in the project plan. The proposed development will be a new 480 unit apartment complex to be completed in two phases in the area of Luther Street and lones-Butler Road in the City of College Station, Texas. A proposed plan of the project can be found in Appendix D. Estimated Proiect Costs: The estimated project construction costs are summarized as follows: · Melrose Apartments Project* · Capital Projects and infrastructure development* · Total: $31,000,000 $ 1,503,500 $32,503,500 * Preliminary project costs were provided by the developer. Actual engineer's estimates will be submitted as part of plan review and oversize participation requests. Economic Feasibility.: The City of College Station is aware that the Melrose Reinvestment Zone is eligible for the creation of a tax increment financing district and is economically feasible as presented. This area, as documented in the Project Plan section, is currently undeveloped and vacant. A. Assessed Value Real estate taxes are based on the assessed value of real property, hence the term ad-valorem (according to value) tax. Table 3 assumes an expected assessed value of the Melrose Apartments Project of approximately $27,690,000 as of January 1, 1999. This value is based on the values assessed by the Brazes County Appraisal District for comparable recently completed multi-family developments within the City of College Station (see Table 2). The calculated value is based on an average per dwelling unit assessment of $57,700 or approximately $46.50 per heated square foot of living area. The higher than average per unit cost is due to the increased number of larger, 4 bedroom units in the Melrose property than in the comparable ones. The average Melrose Apartment unit is 39% larger (based on heated square footage) than the average size of the comparable properties (see Table 2-A). As of January 1, 1998, the expected "base year" value is $171,440. Commons ^pts. TABLE 2' Corn arable Assessed Values 1995 266 192 : ,,~ ,,., ' ~ $39 3'~ Sto, t56,050 $38,180 7,83__..~_4 $48.3'/ -- $ $,118,170 $42,282 $46 44 [~~ERAGE VALUE ~ * Assumptions · The subiect property is compared to similar properties fl~at have been constcucted recently Data for generally comparable properties is used, and comparisons are made to demonstrate a probable value at which the subiect property would be assessed if constructed as proposed · These averages include all amenities including, but not limited to, the building areas, land value, clubhouse, pool, spa, paving, tennis courts, and volleyball courts · Comparable properly assessed ad-valorem tax values are based on the 1997 Brazos County Appraisal District Tax Rolls CO. Llnivcrsi Commons Arbors at W ~ TABLE 2-A. ? ~- ,~:~.~,-.,,:,,, '~? ~:AR~~'~' 25'/,833 167,834 143,871 266 192 172 969 874 836 + 8.51% - 2.19% - 6.33% College Station Independent School District · 'City of College Station · Brazos County · TOTAL TAX RATE There are three taxing units which are the potential sources for calculating the annual captured value and tax increment. These units and their respective (97-98) tax rates per one hundred dollars of valuation are as follows: $1.7400 $0.4293 $0.4178 $2.5871 l0 All (100%) of the City of College Station ad-valorem taxes, approximately 50% of the CSISD taxes as per their agreement with the developer, and 0% of the Brazos County ad valorem tax rates are to be recaptured for this tax increment zone. The tax rate utilized in this analysis will be as follows: · College Station Independent School District · City of College Station · Brazos County · TOTAL CAPTURED TAX RATE $1.7400 x -50% -- $0.8000 $0.4293 x 100% = $0.4293 $0.4178 x 0% = $0.0000 $1.2293 In the above assessed and captured value analysis, no change in the overall tax rate of any of the three units was considered. However, a likely change in the current $2.5871 overall tax rate (or $1 2293 "capture rate") per one-hundred dollars of valuation would change the tax increment for that and subsequent years. C. .Captured Value & Increment Proiection The expected "base year" value as well as the estimated January 1, 1999 Brazos County Appraisal District Real Property Ad-Valorem assessed value and the tax increment projections for the TIF District is shown in Table 3. This table assumes no increase in value annually from the base year, and a $1,691,430 cumulative captured tax increment over the 5 (five) year period. TABLE 3' * Captured Value and Tax Increment Proiection 1998 (base) 171,440 $0 $ 4,435 $0 1999 2000 2001 2002 2OO3 $27,690~000 I $27,690~000 ! $27,690,000 $27,690~000 ** Assumptions: · $27,518,560I $27,518,560 $27,518,560 $27,518,560 $27,518,560 $706,368 $706,368 $706,368 $706,368 $706,368 $338~286 $338,286 $338,286 $338~286 $ 338,286 $ 676,572 $1~014~858 $1~353,144 $1.691,430. Captured Tax Scenario uses 100% the proposed (97-98) City of College Station ad-valorem tax rate, approximately 50% of the current (97-98) CSISD ad-valorem tax rate, and 0% of the Brazos County ad valorem tax rates. ($1.2293/$100 appraised value.) Scenario uses a $27,690,000 assessed ad-valorem project completed by January 1, 1999 ($31,000,000 estimated construction costs-as per developer). Scenario uses no annual property tax or ad-valorem growth factor Il special fund. The City of College Station has decided that the issuance of bonds is not necessary for the creation of this Tax Increment Finance District. FINANCIAL STRUCTURE: The above economic analysis sets forth the financing for the Zone's proposed TIF funded project. In summary, the following is the recommended financial structure for the Financial Plan. $1~503~500 Project Cost (as per developer) Funding City Funds Oversize Participation $ 200,000 TIF Revenues $ 150,000 CSISD Revenues $ 350,000 Total Tax Entity Funding $ 700~000 INTERGROUP Inc. Funds $ 803,500 Project Cost $1~503~500 The City will participate in oversize participation of $200,000 in 1998 and a Tax Increment Finance Program, refunding a maximum of $50,000 per year for 3 years for a total participation of $$$0~000. The College Station Independent School District will participate in the Tax Increment Financing Rebate Program with a maximum total contribution of $350~000 to be paid for a term not to exceed three years. Brazos County will not participate in this Tax Increment Financing District. The developer, INTERGROUP Inc., will be responsible for the remaining balance. Pro, iect Duration: The project duration will be for up to 5 years. The CSISD will participate for a term not to exceed three years. During this period, the Zone will have collected tax increment funds in excess of the annual amortization schedule. The total participation by the entities participating will be $700,000 (Table 4). 12 TABLE 4 Tax Increment Financint~ Participation Schedule .Minimum Required Project Value: For this TIF District to be financially feasible, given the estimated infrastructure project costs, current tax rate, expected taxing entity (City and School District) participation, and a 5 year projection, the minimum assessed value of the Melrose Apartments has to be $11,388,600 ($19.12/sf or $23,73 l/dwelling uni0. This is approximately 41.13% of the expected ad-valorem value of $27,690,000. 13 EXHIBIT - C APPENDIX A DESCRIPTION OF REINVESTMENT ZONE 14 Description Proposed Melrose Project Reinvestment Zone-Tract I DESCRIPTION OF AN APPROXIMA~LY 52.285 ACRE TRACT OF LAND OUT OF THE CRAWFORD BURNET LEAGUE, ABSTRACT NO 7 SITUATED IN TI-IE CITY OF COLLEGE STATION, BRAZOS COUNTY, TEXAS, BE1NG ALL OF THAT CERTAIN 14.946 ACRE TRACT CONVEYED TO KIOWA, LTD. BY DEED RECORDED IN VOLUME 500, PAGE 890 OF THE DEED RECORDS OF BRAZOS COUNTY, TEXAS, ALL OF THAT CERTAIN 21.930 ACRE TRACT CONVEYED TO CAYUSE LIMITED BY DEED RECORDED IN VOLUME 333, PAGE 766 OF SAID DEED RECORDS, ALL OF THAT CERTAIN 5.941 ACRE TRACT (TRACT ONE) CONVEYED TO SAID PAUL WOODS BY' DEED RECORDED IN VOLUME 390, PAGE 696 OF SAID DEED RECORDS, ALL OF THAT CEKTAIN 5.96g ACRE TRACT (TRACT TWO) CONVEYED TO PAUL WOODS BY DEED RECORDED IN VOLUME 390, PAGE 696 OF SAID DEED RECORDS, AND ALL OF THAT CERTAIN 3.500 ACRE TRACT OF LAND CONVEYED TO RAY A. WALKER, TRUSTEE IN DEED RECORDED IN VOLUME 1536, PAGE 280 OF SAID DEED RECORDS, SAID 52.285 ACRE TRACT BEING MORE PARTICULARLY DESCKIBED BY METES AND BOUNDS AS FOLLOWS BEGINNING at a 3/8 tnch iron rod found m the southeasterly right-of-way line of Luther Street (right of way varies), same being the most northerly corner of sam 3.500 acre tract conveyed to Ray d. Walker, Trustee, being also the most westerly corner of said 21.93 acre tract conveyed to Cayuse Limited; THENCE, along the southeasterly right-of-way line of Luther Street, same being the northwesterly line of said 21.93 acre tract, N44 °14 '20 "E, for a distance of 498. 32feet to a 1/2 inch iron rod found being the most westerly comer of a 0.25 acre tract conveyed to Annie May Hughes and Mabel Ciemons recorded in Volume 82, Page 589 of said Deed Records, being also an angle point in the westerly line of said 21.93 acre tract; THENCE, leaving the southeasterly right-of-way line of Luther Street, along the southwesterly line of said 0.25 acre tract, S47°56'44"E, fora distance of l l 3.31feet to a 1/2 inch iron rod found being the most southerly comer of said 0.25 acre tract, being an angle point in the aforementioned northwesterly line of saM 21.93 acre tract; THENCE, in part with the southeasterly line of said O. 25 acre tract conveyed to Annie May Hughes and Mabel Clemons, and in part with the southeasterly line of a O. 25 acre tract conveyed to Lela McCoy by deed recorded in Volume 82, Page 226 of said deed records, being also the northwesterly line of said 21.93 acre tract, N42 °45 '02 "E, for a distance of 250.51feet to a 1/2 inch iron rod found in the southwesterly line of a 1.5 acre tract of land conveyed to Ned Peterson and wife, Etta Peterson by deed recorded in Volume ! 37, Page 634 of said Deed Records. same being the most easterly comer of said [5 0.25 acre tract conveyed to Lela McCoy, and also being an attgle point itt the northwesterly of said 21.93 acre tract; THENCE, continuing along the northwesterly line of said 21.9:1 acre tract, same being the southwesterly line and southeasterly line of said 1.5 acre tract, respectively, the following two (2) courses and distances: 1) S45 °40 '01 "E, for a distance of 235.51 feet to a 1/2 iron rod found for an angle point; 2) N40 °51 '58"E, for a distance of 213.27 feet to a 1.2 inch iron rod found on an angle point in the southwesterly line of said 14. 946 acre tract conveyed to Kiowa, Ltd, being ttte most easterly cor,er of said 1.5 acre tract, and also being the most northerly cortter of said 21.93 acre tract; THENCE, along the southwesterly fine of said 14.946 acre tract, being the northeasterly line of said 1.5 acre tract, N44°10 '38"W, for a distance of 332.37 feet to a 1/2 inch iron rod found in the southeasterly right-of-way line of Luther Street being the westerly comer of said 14.946 acre tract; THENCE, along the southeasterly right-of-way line of Luther Street, same being the northwesterly Hne of said 14. 946 acre tract the following three (3,) courses and distances: 1} N44°07 '43 "E, for a distance of 39&28 feet to a 1/2 inch iron rod found for an angle point; 2) ~V44°I8'OO"E, passing at a distance of 462.98 feet a point from which a 1/2 iron rod found being the apparent westerly comer of a utility easement conveyed to the City of College Station by deed recorded in Volume 1187, page 689 of said Deed Records, bears $43 °02 '59 "E a distance of 0.51 feet, and continuing for a total distance of 477.98 feet to a 1/2 inch iron rod found being the most westerly comer of an access road (unrecorded) according to said 14. 946 acre tract deed; 3) 3f44°45 'O8"E, for a distance of 26.08 feet to a 1/2 inch iron road found in the southwesterly right-of-way line of Jones-Butler Road (right of way varies), same being the most northerly comer of said 14.946 acre tract, for the most northerly comer hereof; THENCE, along the southwesterly right-of-way line of Jones-Butler Road, same being the northeasterly line of said 14.946 acre tract, $42°57'30"E, for a distance of 726.13 feet to a 1/2 inch iron road found being the most easterly comer of said 14.946 acre tract, being an angle point in the westerly right-of-way line of Jones-Butler Road, for the most easterly comer hereof and from which a 1/2 inch iron rod found in the northerly line of Jones-Butler Road bears 1f42 O02'49"E, a distance of 40.08feet; 16 THENCE, along the southeasterly line of satd 14. 946 acre tract, being also the right-of- way line of Jones-Butler Road, S44 °00 '56 "W, for a distance of 24.88 feet to a 1/2" iron rod set for att angle point; THENCE, continuing with said southeasterly line, in part with said right-of-way line and in part with the northwesterly line of Woodway Pillage, Section Two, a subdivision according to the plat thereof recorded in Volume 525, page 645 of said Deed Records, S44°29 'I6"W, passing at a distance of 15.05 feet a 1/2 inch iron rod found being an attgle point in the southwesterly right-of-way line of Jones-Butler Road, same being the most northerly corner of said Woodway Village, Section Two Subdivision, and continuing for a total distance 182.30feet to a 1/2 htch iron rod set in the southeasterly line of said 14.946 acre tract, being also the northeasterly corner of said Reserve Tract of Parkway View ~4ddition, and from which a 1/2 inch tron rod set for the most southerly corner of said 14.946 acre tract, same being the most easterly corner of satd 21.93 acre tract bears S44 °29 '16"Wa &stance of 668. 31feet; TItENCE, leaving the southeasterly line of said 14.946 acre tract, with the northeasterly line of the Reserve Tract of said Parkway View ,4ddition, same being the southwesterly line of said Woodway View l/illage-Section Two, the following 10 (ten) courses and distances: 0 With the arc of a curve to the left havtng a radius of 859. 05 feet, a central attgle of 40°51 '45", att arc length of 612.66 feet and a chord which bears S24°03 '24"W, for a distance of 599. 76feet to a 1/2 inch iron rod set for a point of reverse curve to the right; 2} With the arc of said reverse curve to the right having a radius of 20.00 feet, a central angle of i01 °56'17", an arc length of 35.58feet and a chord which bears S54°35'41"W, for a distance of 31.07feet to a 1/2 inch iron rod set for an angle point; 3) S08°48'52"E, for a distance of 65.59feet to a 1/2 inch iron rod found for the beginning of a non-tangent curve to the right; 4} With the arc of said non-tangent curve to the right having a ra_d_ius of 20.00 feet, a central angle of 71 °59 '01 ", an arc length of 25.13 feet and a chord which bears $39°06'38"E, for a distance of 23.51feet to a cut "X" in concrete set for a point of reverse curve to the left; 5) With the arc of said reverse curve to the left having a radius of 859.05 feet, a central angle of 02 °19 '20", an arc length of 34.82 feet, and a chord which bears $04"29'29"E, for a distance of 34.81 feet to a 1/2 inch iron rod found for an angle point; 17 6) S05 °27 '41 "E, for a distance of 109. 94feet to a 1/2 inch iron rod found for att attgle point; 7} With the arc of non-tangent curve to the right having a radius of 75. OO feet, a central angle of 38 °31 '10'; an arc length of 50. 42 feet and a chord which bears S13 °43 '54"W, for a distance of 49. 48feet to a cut "X" in concrete set for a point of compound curve; 8} With the arc of said compound curve to the right having a radius of 20. OO feet, a central angle of 98 °44 '40 ". an arc length of 3,l. 47feet and a chord which bears S82°21'48"W, for a distance of 30.36feet to a 1/2 inch iron rod found for an angle point; 9) S42°11 'IO"W, for a distance of 19.89feet to a 1/2 inch iron rod set for an angle point; 10) S47 °44 '17 "E, for a distance of 32. 97feet to a cut "X" in concrete found for an angle point; THENCE, leaving the southwesterly line of said Woodway Village-Section Two, along the common line of Lot 5, Block "1" and said Reserve Tract of Parkway View ,4ddition, S42°16'20"W, for a distance of l19.49 feet to a 1/2 inch iron rod found, being the westerly corner of said Lot 5, same being an angle point in the southerly line of said Reserve Tract; THENCE, along the southwesterly line of sam Lot 5, same being the southerly line of said Reserve Tract, S47°46'52"E, for a distance of 13. 46feet to a 1/2 inch iron rod set being the most northerly corner of the northeasterly right-of-way line of Southwest Parkway (70' right-of-way) dedicated as Tract #3 and Tract #2 by the Final Plat of Walden Pond Townhomes, a subdivision according to the plat thereof recorded in Volume 669, Page 661 of said Deed Records, for an angle point; THENCE, in part with the southerly line of said Reserve Tract, in part with the easterly line said 21.93 acre tract, in part with the southeasterly lines of said Tract One and Tract Two conveyed to Paul Woods, and also in part with the northwesterly right-of-way line of said Tract #3 and Tract #2 of Walden Pond Townhomes Subdivision, in txtrt with the northwesterly line of Lot I of said Walden Pond Townhomes Subdivision and in part with the northwesterly line of a tract of land conveyed to Harry Gorzycki and wife, Violet Gorzycki, by deed recorded in Volume 81, Page 186 of said deed records, S43°38'17"Y~, passing at a distance of 34. 67 feet a 1/2 inch iron rod found for an easterly corner of said 21.93 acre tract, same being the most southerly corner of said Reserve Tract, from which a 1/2 inch iron rod being an ell corner of said 21.93 acre tract, being also the most westerly corner of said Reserve Tract, bears N47°48'OO"F~, a distance of 499.64 feet, again passing at a distance of 885.35 feet a 1/2 inch iron rod found being the most southerly corner of said 21.93 acre tract, same being the most easterly corner of said 18 5. 941 acre tract (Tract OhO conveyed to Paul Woods, and continuing for a total distance of 1324. 76feet to a 1/2 inch iron rod found being the most southerly corner of said 5.968 acre tract (Tract Two) conveyed to Paul Woods, same being the most easterly corner of a 6.21 acre tract of land conveyed to Travis L. Vtriiliams, Sr., and wife, Helen Jean I, gilliarns by deed recorded in Volume 433, Page 42, and from which a 5/8 inch iron rod found being the most southerly corner of said 6.21 acre tract, bears S43°28'43"W, a distance of 227.54 feet; THENCE, along the southeasterly line of said 5.968 acre tract (Tract Two), in part with the northeasterly line of said 6. 21 acre tract and in part with the northeasterly line of a 1 acre tract conveyed to Marion C. Williams and wife, Janice Williams by deed recorded in Volume 999, Page 138 of said Deed Records, N45 °45 '51 "W;, passing at a distance of 564.35feet a point from which a 1/2 inch iron rod found on the apparent most easterly corner of said 1 acre tract, bears, N44°48'55"E, a distance of 0.31 feet and from said point a 1/2 inch iron rod found being the most southerly comer of said I acre tract bears S44°48 '55"I~r a distance of 69.81 feet, and continuing for a total of 1186.28 feet to 1/2 tach iron rod found in the southeasterly right-of-way line of Luther Street, same being the most northerly of said I acre tract, also being the most westerly corner of said 5. 968 acre tract, and the westernmost corner hereof,' THENCE, along the southeasterly rtght-of-way line of Luther Street, same the nortlm,esterly lines of said 5.968 acre tract ( Tract Two) and said 5.941 acre tract (Tract One) conveyed to Paul Woods, N44°45 '39"E, passing at a distance of 438.92 feet a 1/2 inch iron rod found the most northerly comer of said Tract One, same being the most westerly comer of said 3.500 acre tract conveyed to Ray A. Walker, Trustee, and continuing for a total distance of 624.27 feet to the POINT OF BEGINNING, containing an area of 52.285 acres of land, more or less, within these metes and bounds. JOHN T. BILNOSKI , A REGIS1F..RED PROFESSIONAL LAND SURVEYOR, DID HEREBY CERTIFY THAT THE PROPERTY DESCRIBED HEREIN WAS DEI~_..RMINED BY A SURVEY MADE ON THE GROUND UNDER HIS DIRECTION AND SUPERVISION. JOHN 11. BII. aVOSKI, R.P.L.S. NO. 4998 STATE OF TEXAS BURY& PIITMAN,, INC. ENGINEERS- SURVEYORS 3345 BEE CA VEX ROAD SUITE 200 AUSTIN,, TF_,J(AS 78746 19 Description Proposed Melrose Project Reinvestment Zone-Tract 2 The fight-of-way of Luther Street West from the right-of-way of Marion Pugh Drive to the right of way of FM 2818. Description Proposed Melrose Project Reinvestment Zone-Tract 3 The fight-of-way of Jones-Butler Road from the right-of-way of Holleman Drive West to the right-of-way of Luther Street West. 2O APPENDIX B PROPERTY OWNERSHIP 21 PROPERTY OWNERSHIP PLAN ,/ ./ TP.~C T Il · '~P' TIT~CT 14 ,~' TRACT 22 APPENDIX C COST ESTIMATES 24 Capital Improvement Preliminary Cost Estimate -Melrose TIF District- Item Amount Roadway · Luther (inc. ROVO $ 883,250 · Jones Butler $ 360,000 Water · Offsite $ 50,250 · Onsite(inc. OP) $ 184,600 Wastewater · Ext. To 2818 $ 8,500 · Additional Ext. $ 16,900 TOTAL $1~503~500 *Note: All costs are preliminary estimates provided by the developer. Actual Engineer's estimates will be submitted as part of plan review and oversize participation requests. 25 MELROSE APARTMENTS PROPOSED PHASE 1 27 MELROSE APARTMENTS PROPOSED PHASE 2 28 APPENDIX E DEVELOPMENT AGREEMENT 29 DEVELOPMENT AGREEMENT This Agreement is entered into this the~'~l~ day of ~ , 1{)97, by and between the CITY OF COLLEGE STATION, TEXAS, a Texas Home-Rule Municipal ~ration (hereinatter refen'ed to as the "City"), and INTEGROUP, INC., a Florida Corporation, (herainatter referred to as "Developer"). WHEREAS, Developer is or will be the owner of an a tract of land depicted and described on the plat attached hereto as Exhibit "A" (hereinalter referred to as "Pmpe[ty'); and WHEREAS, on July 11, 1996, the City Council rezoned the pmpe[ty with conditions that would be incorporated into a development agreement; and WHEREAS, the conditions imposed on the rezoning require mad improvements, sewer improvements and density limitations on the development; and NOW THEREFORE, for and in consideration of the recitations above, and in consideration of the promises and covenants herein expressed, the pa[ties hereby agree and covenant as follows: 1. Developer will make certain off-site and oversize improvements necessary to support the proposed development of not more than 500 apartment dwelling units. Offsite and oversize improvements to water, wastewater and streets to be constructed by Developer are set forth in the plans and specifications incorporated herein by reference. City and Developer acknowledge that estimated costs are estimates only and the obligation of the parties are based on the scope of work set fo[th in the plans and specifications. 2. City will pay $200,000.00 to Developer for off-site and oversize infrastructure improvements upon completion and acceptance of said improvements by City and provided that (i) Developer has constructed the improvements in accordance with all plans, specifications and City ordinances; and (ii) the cost or' such improvements equals or exceeds $200,000.00. 3. To the extent permitted by law and upon compliance with all applicable legal, procedural and regulatory requirements, City will establish a Tax Increment Financing District (hereinafter referred to as 'TIF District') pursuant to Chapter 311 of the Texas Tax Cede, as amended. The Reinvestment Zone will consist of the property owned by developer upon which will be constructed all of the proposed Melrose Project Site. The Reinvestment Zone will also include all street rights-of-way and utility easements necessary to construct the improvements described in the plans and specifications. 4. Subject to the requirements established in paragraph 3 hereinabove and the adoption of approved financing and project plans as defined in Section 311.002 of the Tax Increment Financing Act, City will pay Developer, solely out of tax revenues generated by the Reinvestment Zone, $50,000.00, per year for a total not to exceed $150,000.00.The refund payments from the TIF District are made to Developer in consideration for construction of the off-site and oversize improvements described in the plans and spefications that will benefit the community as well as the Melrose project. City and Developer expressly agree and understand that that in the event that the TIF Distdct produces revenues that are insufficient to reimburse Developer as anticipated in this agreement within the five-year term of the TIF District, City shall not be obligated to pay Developer for any deficiency. In no case will any refund payment for any one year exceed the lesser of (a) $50,000 or (13) City's Tax Increment revenues from the Page 1 of 4 lah~.'lgroupVegaN'ndegr, doc 1/28~ 7 Reinvestment Zone for that year. City agrees to create the TIF District for a Deriod of five years from the effective date of the Reinvestment Zone 5. Developer. at its cost, will furnish to City. all metes and bounds or other legal descriptions necessary to describe the boundaries of the Reinvestment Zone described in paragraph 3 above. 6. Developer has submitted plans and specifications to City for the improvements and those plans and specifications have been approved by the City. Said plans and specifications are incorporated herein by reference as if set out in full herein. Developer will construct all of the offsite and oversize improvements at its own cost and expense and be reimbursed pursuant to paragraphs 2 and 4 hereinabove. 7. INDEMNIFICATION: Developer agrees to and shall, for a five year period from the date of approval and acceptance of the improvements dedicated to the City, indemnify, hold harmless, and defend the City, its officers, agents, and employees, from and against any and all claims, losses, damages, causes of action, suits and liability of every kind, including all expenses of litigation, court costs, and attorney's fees, for injury to or death of any person, or for damage to any property, or for breach of contract, arising out of or in connection with this Agreement, the work to be performed hereunder, and the properties designated during site and offsite construction, regardless of whether such injuries, death, damages, or breach are caused in whole or in part by the negligence of the City. 8. RELEASE: Developer, its successors-in-interest and assigns hereby release, relinquish and discharge the City, its agents, officers, and employees from all claims, demands, and causes of action of every kind and character, including the cost of defense thereof, for any loss of or damage to property (whether property of either of the parties hereto, their employees, or of third parties) that is caused by or alleged to be caused by, arising out of, or in connection with this development agreement. This release shall apply regardless of whether said claims, demands, and causes of action are covered in whole or in part by insurance and regardless of whether such loss, or damage was caused in whole or in part by the negligence of the City. 9. It is understood that this Agreement shall be governed by, and construed and enforced in accordance with, and subject to, the laws of the State of Texas. The parties agree that performance of this Agreement shall take place in Brazos County, Texas, and that venue shall lie in the court of competent jurisdiction in Brazos County, Texas. 10. The parties agree that they have read the terms of this Agreement and familiarized themselves with the requirements hereunder and agree that they understand their ~ghts and r?.sponsibilities hereunder. 11. It is undemtood and agreed that this Agreement shall be binding upon and shall inure to the benef',t of the parties and their respective heirs, lessees, representatives, successom, and assigns. 12. It is understood that this Agreement contains the entire agreement between the parties and supersedes and all prior agreements, arrangements, or understandings between the parties relating to the subject matter. No oral undemtandings, statements, promises or inducements contrary to the terms of this Agreement exist. This Agreement cannot be changed or terminated unless in writing and agreed lo by both leh~o:~roupVegalVnelagr, doc 1/'28/97 Page 2 of 4 13. The parties executing this Agreement state that they are each authorized to sign on behalf of their respective corporations. Developer shall provide proof of his authorization to enter into this Agreement as owner or from the owner of the property. 14. Time. Time is of the essence. Unless othen~ise specified, all references to 'days' shall mean and mt'er to calendar days. Business days shall exclude all Saturdays, Sundays and Texas legal banking holidays. in the event the date for performance of any obligation hereunder shall fall on a Saturday, Sunday or Texas legal banking holiday, then that obligation shall be performable the next following regular business day. 15. Sevembility. If any of the terms and conditions hereof shall for any mason be held to be invalid, illegal, or unenforceable in any respect, such validity, illegality, or unenforceabllity shall not affect any other of the terms and conditions hereof and the terms and conditions hereof shall themalter be construed as if such invalid, illegal, or unenforceable terms and conditions had never been contained herein. 16 Counterparts. This agreement may be executed in any number of identical counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all counterparts hereof taken together shall constitute but a single instrument. 17. Presumption Concerning Interpretation. This Agreement shall not be construed mom strictly against one party than against the other merely by virtue of the fact that it may have been prepared by counsel for one of the parties, it be recognized that all of the parties to this Agreement have contributed substantially and materially to the preparation of this Agreement. 18. Further Assurances. In connection with this Agreement as well as all transactions contemplated by this Agreement, each signatory party hereto agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions, and conditions of this Agreement in all such transactions. 19. Recitals. Any recitals in this Agreement are represented by parties hereto to be accurate, and constitute a part of the substantive agreement. Dated this the ~'~'J~ day of ~ , 1997. INTEGR(~~ ~ CITY OF COLLEGE STATION ~ F.~ BLE~fLEY~'President LYNNr~clLHANEY, Mayor Page :~ of 4 ATTEST: CONNIE HOOKS, City Secretary ,~E'C~E K. NOEl City Manager AP~O~ ROXANNE NEMCIK, Acting City Attorney APPROVED A~lZ'o FINANCING: STATE OF TEXAS ) ) ACKNOWLEDGMENT COUNTY OF BRAZOS ) This instrument was acknowledged on the ,~~ day of ~. 1997 by LYNN MclM-IANEY. in her capacity as Mayor of the City of College Sti~on, Texas/a Texas Home Rule Municipality, on behalf of said municipality. USAA. HUGHES ........ i: ......... I1. Notary Public in and for U the State of Texas , of INTEGROUP, INC., STATE OF ,,~',/'0~£ c~c~- ) ) COUNTY OF ~,cY'C~f ) This instrument was acknowledged on the ~ day of ~ b~ Ro~ald F. Buckley aS President ' a Flodda Corporation, on behalf of said corporation. ACKNOWLEDGMENT KAREN M. PEROUE Notary Publi~ State of Flodda My Comm. expires Sept. 19, 1999 Comm. No, CC 496662 Notary Public in~..t'or, . the State of ~_~__~_~.~.~.~__ lahlo.'IgmupVegaltmelagr, doc 1/2&'97 Page 4 of 4 EXHIBIT "A "