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HomeMy WebLinkAboutRES 95-304 RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to enter into a contract with Texas Commerce Shareholders Company to provide three lots for the construction of new homes in the Charlton-Pollard Neighborhood. The agreement is substantially in the form attached hereto as Exhibit "A". PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1995. - Mayor - CONTRACT THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, pursuant to the authority of Section 272 . 001(i) of Chapter 272 of the Texas Local Government Code, The City of Beaumont, Texas (the "City") is authorized to convey, without the solicitation of bids, certain lands acquired by the City with funds received for economic development purposes to a private, for-profit entity or a non-profit entity in carrying out the entity's contract with the City; and WHEREAS, by Resolution Number , passed by the City Council of the City on 1995, the City is authorized to enter into a contract with Texas Commerce Shareholders Company ("TCS") , a private, for-profit corporation, for the construction of new homes in the Charlton-Pollard Neighborhood for the purpose of providing decent, safe and sanitary housing for eligible families of the City; and WHEREAS, pursuant to said Section 272. 001(i) and the Resolution, the City and TCS desire to enter this Contract, whereby the City will provide to TCS three (3) lots in the Charlton-Pollard Neighborhood for the purpose of construction on such lots by an independent contractor selected by TCS (to whom TCS will convey the lots provided to it by the City pursuant to this Contract) of new homes, thereby assisting in the revitalization of the Charlton- Pollard Neighborhood through the construction of new housing units, the elimination of blighted areas of the City, and the generation of tax revenues for the City. For the purposes of this Contract, "new housing units" or "new residences" shall comply with the minimum standards set out on Exhibit "B" attached hereto and made a part hereof for all purposes. NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS: That for and in consideration of the mutual covenants, promises and agreements contained herein, the City, acting herein by and through Ray A. Riley, its duly authorized City Manager, and TCS, acting herein by and through Beverly McCaskill, its duly authorized Senior Vice President, do hereby covenant and agree as follows: KSALE\LAND\CITY.DLD-11-03-95 PAGE 1 EXHIBIT "A" 1. Subsequent to the City's conveyance of the lots to it, TCS, whose mailing address is c/o Texas Commerce Bank National Association, 510 Park Street, Beaumont, Texas 77701, Attention: Mr. David Roy, will convey the three (3) lots to an independent contractor selected by TCS for the actual construction of a new residence on each of such lots. The lots will be conveyed by TCS to the selected contractor (the "Contractor") without any consideration charged or received by TCS, other than such covenants as shall be imposed by TCS or by Texas Commerce Bank National Association (the "Bank") , which will provide the interim construction financing to the Contractor for the construction of the residences, respecting the construction and completion of the new residences on the lots and the sale of the completed residences to eligible individuals or families. 2 . The City agrees to convey the lots to TCS within ten (10) days after the execution of this Contract. The lots will be conveyed by the City to TCS without any consideration charged or received by the City, other that the covenants, promises and agreements on the part of TCS contained in this Contract. The City and TCS have established August 31, 1996 as the "target" date by which all three (3) new residences will be complete and ready for sale to eligible individuals or families and January 31, 1996 as the "target" date by which the first of the new residences will be complete and ready for sale to an eligible individual or family; and TCS agrees to use its best efforts to accomplish these goals. As used in this Par. 2, the term "Project Activities" means (with respect to any of the lots) (a) the issuance by the City of a building permit for the construction of a new residence on the lot, and (b) actual commencement of construction of residential improvements (such as the construction of a slab foundation) on the lot. If Project Activities have not commenced on at least one (1) of the lots by January 31, 1996, the City may, at its election, terminate this Contract by written notice given to TCS; and, upon the termination of this Contract, title to any of the lots on which Project Activities have not then commenced will be reconveyed to the City. Further, if Project Activities have not commenced on at least two (2) of the lots by February 29, 1996, the City may, at its election, terminate this Contract by written notice given to TCS; and, upon the termination of this Contract, title to any of the lots on which Project Activities have not then commenced will be reconveyed to the City. Finally, if Project Activities have not commenced on all three (3) of the lots by April 30, 1996, the City may, at its election, terminate this Contract by written notice given to TCS; and, upon the termination. of this Contract, title to any of the lots on which Project Activities have not then commenced will be reconveyed to the City. It is further agreed by and KSALE\LAND\CITY.DLD-11-03-95 PAGE 2 between the City and TCS that, except for any expenses specified herein to be paid by the City, any expenses related to, associated with or required for the performance of this Contract shall be paid by TCS or the Contractor, and not by the City. City and TCS agree that if the new residences are not complete and ready for sale to eligible individuals or families by August 31, 1996, City may terminate this Contract, by written notice of termination given to TCS, as to any or all of the lots on which there is not then a new residence completed and ready for sale to eligible individuals or families. As to any lot upon which City has exercised its option to terminate this Contract, as provided above, TCS shall be required to pay to City (within 30 days after receipt by TCS of City's written notice of termination) an amount equal to the aggregate of: (a) one-third (1/3rd) of City's acquisition cost for the three (3) lots; and (b) one-third (1/3rd) of City's cost of site preparation for the three (3) lots. City, at its sole option, may choose to extend the date for having the new residences complete and ready for sale beyond August 31, 1996 for any or all of the three (3) lots if significant progress is being made for completion of new residences thereon as of August 31, 1996. 3 . TCS (or, at its instruction, the Bank) and the City shall cooperate in monitoring the new construction, including, without limitation, the compliance thereof with applicable City codes, ordinances, rules and regulations; but neither TCS, City nor the Bank shall have any liability for (1) failure of TCS or the Contractor to commence construction on any of the lots by any of the applicable "deadlines" for commencement of Project Activities specified in Par. 2 above, (2) the Contractor' s failure to complete construction of any of the new residences by the "target" dates established in Par. 2 above, (3) any defects in Contractor's construction of any or all of the new residences, or (4) any injuries to persons or damage to property arising out of, or resulting from, the operations of the Contractor or its subcontractors, suppliers, agents or employees. TCS will, upon written request from the City, make (or cause to be made) available to the City during normal banking hours, at the Bank's banking house at 510 Park Street, Beaumont, Texas, records relating to the administration of the Contractor's construction of the residences on the lots. 4 . TCS and the Contractor shall operate as independent contractors, and not as officers, agents, servants or employees of the City. The City will not be in control of TCS or the Contractor, except to the extent necessary to enforce compliance with the terms and provisions of this Contract or to enforce compliance with the codes, ordinances, rules and regulations of the KSALE\LAND\CITY.DLD-11-03-95 PAGE 3 City applicable to the construction of the residences on the lots. Subject to the limitations on liability set forth in Par. 3 above, TCS and the Bank shall be solely responsible for the acts and omissions of their respective officers, directors, agents, servants, employees, contractors, licensees and invitees. 5. In consideration of the City's agreement to provide the lots to TCS pursuant to this Contract, TCS (subject to the limitations of liability of TCS and the Bank set forth in Par. 3 above) covenants and agrees to provide (through the Contractor's construction of residences on the lots) new housing built to City codes and held available for sale to eligible individuals or families of the City. 6. TCS covenants and agrees that it (or, at its instruction, the Bank) will use its best reasonable efforts to assure compliance by the Contractor with all applicable federal, State and local laws, including all ordinances, codes, rules and regulations of the City, as amended. TCS further agrees that it will fully comply (or cause full compliance) with the terms and conditions of this Contract under which the lots are provided to it by the City. 7 . The lots (which are described and identified in Exhibit "A" attached to and made a part of this Contract) will be conveyed by the City to TCS by special warranty deed, free of and unencumbered by any liens or encumbrances except for (1) normal and customary residential property restrictions common to the subdivision in which the lots are located, as previously recorded in the Real Property Records of Jefferson County, Texas, (2) platted or recorded utility easements on or affecting the lots, (3) standby fees, taxes and assessments for the current year and subsequent years, and (4) prior reservations, severances or conveyances of oil, gas and other minerals, as previously recorded in the Real Property Records of Jefferson County, Texas. All standby fees, taxes and assessments by any taxing authority for 1995 and prior years shall be paid by the City (if any are due) . The City shall provide to TCS, prior to the conveyance of the lots, a current survey of each of the lots prepared by a registered professional land surveyor. 8. The provisions of this Contract are severable, and if for any reason a clause, sentence, paragraph, or other part of this Contract shall be determined to be invalid or unenforceable by a KSALE\LAND\CITY.DLD-11-03-95 PAGE 4 court or a federal or state agency, board or commission having jurisdiction over the subject matter hereof, such invalidity or unenforceability shall not affect the other clauses, sentences, paragraphs or parts of this Contract which can be given legal effect without the invalid or unenforceable clause, sentence, paragraph or part of this Contract. 9. The failure of the City to insist upon performance of any term or provision of this Contract or to exercise any right herein conferred shall not be construed as a waiver or relinquishment to any extent of the City's right to assert or rely upon any such term or right on any future occasion. 10. This written instrument and the attachments or exhibits hereto constitute the entire agreement between the parties concerning the subject matter hereof, and any prior or contemporaneous oral or written agreements which purport to vary the terms hereof shall be void. IN WITNESS WHEREOF, the City and TCS have caused this Contract to be executed in multiple originals in Beaumont, Jefferson County, Texas, on this day of , 1995. THE CITY OF BEAUMONT By: Name: Ray A. Riley Title: City Manager ATTEST: By: Name: Rosemary Smith Title: City Clerk TEXAS COMMERCE SHAREHOLDERS COMPANY By: Name: Beverly McCaskill Title: Senior Vice President ATTEST: By: Name: Title: KSALE\LAND\CITY.DLD-11-03-95 PAGE 5 EXHIBIT "All (Legal Description of Lots to be Attached) RSALE\LAND\CITY.DLD-11-03-95 PAGE 6 EXHIBIT "Bn (Design Criteria to be Attached) KSALE\LAND\CITY.DLD-11-03-95 PAGE 7