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HomeMy WebLinkAboutPACKET SEP 11 1984 A G E N D A REGULAR SESSION OF THE CITY COUNCIL SEPTEMBER 11, 1984 CITY COUNCIL CHAMBERS 1:15 P.M. * Invocation. * Pledge of Allegiance. * Roll call . * Proclamations. * Consent Agenda. I. An ordinance regulating the consumption, sale and possession of alcoholic beverages in parks. 2. A resolution authorizing final payment for the Tyrrell Park Recrea- tion Building renovations. Other business. Hear citizens. Recess. RECONVENE FOR WORK SESSION. i 1. September 7, 1984 Council Letter 733 Honorable Mayor and Members of City Council Subject: Alcoholic Beverages in Parks The ordinance concerning sale, consumption and possession of alcoholic bever- ages in parks was amended in both June and October of 1983. Unfortunately, the October amendment which dealt with beer sales at the Henry Homberg Golf Course erroneously excluded the Riverfront Park x e ceptions which were in- cluded in the June amendment. The most recently-passed amendment is the one which prevails and, as a re- sult, the exception for Riverfront Park is not part of the Code of Ordinances for the City. The specific language for the exception is included in the paragraph under Section I of the Ordinance attached to this Council Letter. In order to rectify this oversight, the ordinance herein proposed conbines all the exceptions approved by Council for the sale, consumption and posses- sion of alcoholic beverages in parks. It is recommended that this ordinance be adopted. Karl Nollenberger City Manager I - AGENDA ITFA NO ORDINANCE NO. ENTITLED AN ORDINANCE AMENDING CHAPTER 20, SECTION 20-10(H) OF THE CODE OF ORDINANCES OF THE CITY OF BEAUMONT TO ALLOW THE SALE, CONSUMPTION AND POSSESSION OF ALCOHOLIC BEVERAGES IN RIVERFRONT PARK ; PROVIDING FOR SEVERABILITY; PROVIDING FOR REPEAL AND PROVIDING A PENALTY. BE IT ORDAINED BY THE CITY OF BEAUMONT: Section 1 . That Chapter 20, Section 20-10( h) of the Code of Ordinances of -- the City of Beaumont be, and the same is hereby , amended to read as follows: Section 20-10( h) . No person shall sell, consume or possess any alcoholic beverage within any park of the City. The prohibition against sale, consumption and possession of alcoholic beverages shall not apply in the following areas: a) inside the Harvest Club; b) inside the YMBL Building; c) inside the Coliseum or the fenced area surrounding the Coliseum; d) within Riverfront Park so long as the sale is to, and possession and consumption is by , persons who are attending functions which are sponsored by groups or organizations and which are held in conjunction with the rental and use of facilities in the civic center complex. The prohibition against the consumption and possession of alcoholic beverages at Fair Park shall not apply inside any permanent building except concession stands. n The prohibition against the sale of alcoholic beverages shall not apply to the sale of beer within the club house of the Henry Homberg Golf Course at Tyrrell Park. The prohibition against consumption and possession of alcoholic beverages shall not apply to the possession and consumption of beer in Tyrrell Park. Section 2. That if any section, subsection, sentence, clause or phrase of this ordinance, or the application of same to a particular set of persons or circumstances, should for any reason be held to be invalid , such invalidity shall not affect the remaining portions of this ordinance, and to such end the various portions and provisions of this ordinance are declared to be severable. Section 3. That all ordinances or parts of ordinances in conflict herewith are repealed to the extent of the conflict only. Section 4 . That any person who violates any provision of this ordinance shall, upon conviction, be punished as provided in Section 1-8 of the Code of Ordinances of Beaumont, Texas. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 19 Mayor - 2 - 2. September 7, 1984 Council Letter 738 Honorable Mayor and Members of City Council Subject: Final Payment for Tyrrell Park Recreation Center Renovation A resolution authorizing final payments to S & S Enterprises, Inc. and to White Budd VanNess Partnership is requested. The completed project has been inspected by the City staff and the National Park Service staff. Total construction cost was $195,337. 5. The project was one of four funded by the City's 1983 Urban Parks (UPARR) grant. Major renovations to the building included a new roof, repair of exposed structural roof members, partial replacement of roof decking, handicapped accessibility provisions, repair of sidewalks, and construction of a moisture barrier system to stabilize the foundation. Without this work, the building would probably have had to have been demolished within a few years. The amount of $9,766.89 will be paid to S & S Enterprises , Inc. , the general contractor for the Tyrrell Park Recreation Building Renovation. The White Budd VanNess Partnership will receive the sum of $1,698.70. Total amount of both payments is $11,465.59. The staff will continue to seek additional grants and donations to further fund restoration of this building. It is recommended that this resolution be approved. I U11 Karl Nollenberger City Manager D NO- al. R E S O L U T I O N WHEREAS, the City of Beaumont awarded a contract to S & S 95 3,3 Enterprises, Inc. in the amount of $3799,513.75 including change .orders for renovation of the Tyrrell Park Recreation Building; and, WHEREAS, the project has been completed in accordance with the plans and specifications; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT renovation of the Tyrrell Park Recreation Building is hereby accepted by the City of Beaumont and that the City Manager be, and he is hereby , authorized to make final payment to S & S Enterprises, Inc. in the amount of $9,766.89. BE IT FURTHER RESOLVED THAT the City Manager be, and he is hereby , authorized to make payment to the White Budd VanNess Partnership in the amount of $1 ,698.70. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1984. - Mayor - CONSENT AGENDA SEPTEMBER 11, 1984 * Approval of Minutes. a. An ordinance amending the 1984 budget and approving the Convention and Visitors Bureau budget for 1985. b. A resolution authorizing purchase of a pneumatic valve operator. c. A resolution making committee appointments. d. A resolution authorizing execution of a contract with the Ansul Company. e. A resolution authorizing purchase of a copier. a. September 7, 1984 Council Letter 737 Honorable Mayor and Members of City Council Subject: Ordinance Amending 1984 Budget and 1985 Budget for Convention and Visitors Bureau The ordinance which appears on the September 11th City Council agenda would approve an amended 1984 budget and the new 1985 budget for the Convention and Visitors Bureau. The amended 1984 budget would give the City staff authority to make payment to the CVB based upon the actual collections of hotel/motel tax. At the same time, we felt it was appropriate to approve the 1985 budget for $375,000 for the CVB which is included in the proposed budget document. It is recommended that City Council approve the ordinance as read. L,/,'k 4a� Karl Nollenberger City Manager September 7, 1984 Council Letter 732 Honorable Mayor and Members of City Council Subject: Committee Appointments This resolution would make three new appointments and one reappointment on nominations by Councilmember Weisbach. Katherine B. Doyle and Ruth Ruilmann would fill new positions on the Clean Community Commission. Their terms would expire September 30, 1986. Elta Williams would be appointed to replace R. E. Bistline on the Community De- velopment Block Grant Citizens Advisory Committee. Mrs. Williams' term would expire May 31, 1986. Bill Hale would be reappointed to the Transit Advisory Committee for a term expiring June 30, 1986. It is recommended that this resolution be approved. Karl Nollenberger City Manager 1Q Y d� LIN R E S O L U T I O N WHEREAS, on August 27, 1984 bids were received for the purchase of one ( 1 ) pneumatic valve operator; and, WHEREAS, Tools Unlimited of Webster, Texas submitted a bid in the amount of $3 ,184 ; and, WHEREAS, the City Council is of the opinion that the bid submitted by Tools Unlimited is the lowest and best bid and should be accepted; _ NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by Tools Unlimited in the amount of $3 ,184 for the purchase of one ( 1 ) pneumatic valve operator is hereby accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1984. - Mayor - r C. September 7, 1984 Council Letter 732 Honorable Mayor and Members of City Council Subject: Committee Appointments This resolution would make three new appointments and one reappointment on nominations by Councilmember Weisbach, Katherine B. Doyle and Ruth Ruilmann would fill new positions on the Clean Com- munity Commission. Their terms would expire September 30, 1986. Elta Williams would be appointed to replace R. E. Bistline, whose term has expired. Mrs. Williams' term would expire May 31, 1986. Bill Hale would be reappointed to the Transit Advisory Committee for a term expiring June 30, 1986. It is recommended that this resolution be approved. Karl Nollenberger City Manager � r R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the following appointments and reappointments be made: Expiration Appointments Reappointments Commission of Terms Katherine B . Doyle Clean Community 9/30/86 Ruth Ruilman Clean Community 9/30/86 Elta Williams CDBG Citizens 5/31/86 Bill Hale Transit Advisory 6/30/86 PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1984. Mayor - d. September 7, 1984 Council Letter 736 Honorable Mayor and Members of City Council Subject: Ansul Fire Extinguisher School Contract The annual Ansul Fire Extinguisher School has been scheduled for March 7th and 8th; 11th and 12th; 14th and 15th; and 18th and 19th of 1985, at the Beaumont Fire Department Training Center. The contract with the Ansul Company of Marinette, Wisconsin, for the 1985 school is basically the same as that of prior years. The agreement allows the Ansul Company to use the Training Center and facilities for the annual fire training school . The purpose of the Ansul Fire Extinguisher School is to provide training in first aid fire extinguishment for firefighting personnel from throughout the United States. The school is an excellent opportunity to acquire "hands-on" fire training. A variety of simulated fire hazards are utilized to provide students with experience in fighting several types of fires that may be encountered if a fire emergency occurs. The cost of the rental of the Fire Training grounds is $5,200 for the eight- day school . In addition, the Ansul School affords economic benefits to the commi!nity by the various out-of-town participants, as well as visiting company personnel and instructors. The contract has been reviewed by the City Attorney's office. Early approval by Council of the contract is needed to assure proper schedul- ing. It is recommended that this resolution be approved. Karl Nollenberger City Manager r � A f IGF, �,I . DA ff NO R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby , authorized to execute an agreement between the City of Beaumont and Wormald U. S. , Inc. in the form attached hereto as Exhibit "A" for use of the Beaumont Fire Department Traning Center. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1984. - Mayor - e. September 7, 1984 Council Letter 735 Honorable Mayor and Members of City Council Subject: Purchase of Copier Informal bids were received for a copier for the Sanitation Division. Bids received are as follows: Office Development Systems, Inc. $1,850.00 Global Services, Inc. 2,495.10 Xerox Corporation 3,795.00 Monroe Systems for Business 2,050.00 National Copy Products, Inc. 2,495.00 Savin Corporation 2,631.00 Funds are available within the Sanitation Division's budget for this purchase. It is recommended that the bid of Office Development Systems; in the amount of $1,850, be approved. Karl Nollenberger City Manager xR -I LIN R E S O L U T I O N WHEREAS, bids were received for the purchase of a copier for the Sanitation Department; and, WHEREAS, Office Development Systems of Beaumont, Texas submitted a bid in the amount of $1 ,850; and, WHEREAS, the City Council is of the opinion that the bid submitted by Office Development Systems is the lowest and best bid and should be accepted; _ NOW, THEREFORE, BE IT RESOLVED BY 'rHE CITY COUNCIL OF 'THE CITY OF BEAUMONT: THAT the bid of Office Development Systems in the amount of $1 ,850 for the purchase of a copier for the Sanitation Department is hereby accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day of 1984. - Mayor - WORK SESSION AGENDA SEPTEMBER 11, 1984 CITY COUNCIL CHAMBERS 1. Discussion of parking lot construction at Park and Crockett Streets. 2. Discussion of budget. W/S September 7, 1984 1. Council Letter 731 Honorable Mayor and Members of City Council Subject: Parking Lot at Park and Crockett Streets The construction of the Liberty-Laurel Phase I (Crockett Connector) Project will result in the loss of 70 on-street parking spaces. Because of the loss of these parking spaces and the interest in economic development of this area, it is proposed that a parking lot be developed in conjunction with this street project. The attached site plan shows a suggested parking lay-out. The es- timated cost of constructing these facilities is $280,000, as noted below: Construction $202,400 Landscaping, lighting, etc. 43,400 Contingencies 34,200 Total $280,000 The land for this project was recently acquired as part of the Crockett Con- nector Project at a cost of $101,800. Funds for this project are available in the Transportation Improvement Program (Liberty-Laurel Phase I) . This site was identified for use as a small park in the 1973 Central Business District Development Plan, prepared by Gruen Associates. The design shown in the site plan will provide many of the visual and aesthetic benefits that would have resulted from a small park, while providing 50 needed parking spaces and better access for pedestrians. The staffs of the Planning and Urban Transportation Departments have been working several months on the development of this proposal . We look forward to discussion it with you in Work Session. Karl Nollenberger City Manager Crockett Connector °� Orleans street ° 3' Retal ning 14all' Materials ♦. S1 <.' ` �` ' stopping blocks t"f a F ,�� .t r,•` t,,. ,r it J, ° sidewalk trim/brick �:�4 � '� �j '� :.�- y^' �^�i✓� ° sidewalk attem/sle In block _ berm outside / � ;, \ /�; � ° retaining walls/brick Inside 6 ber outside o l�"' vko� �> Parking Lod parking lot surface/pebble rock finish / staining Wall �r3<. _ ` S'i`d ✓✓ / Existing eundings Olt Park Street /> ?� north T f I f _ELI I J r J \ Existing Buildings 3�0 40 80 so scale 1":40'-0" PARKING LOT MASTER PLAN Elevation Typical 3' Retalning Wail crockett connector/park street t prepared by the planning department, city of beaumont,texas march 1984 * A G E N D A BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION SEPTEMBER 11, 1984 - 4:30 P.M. I . Approval of minutes of the BIDC meeting held: August 28, 1984 TI. First Amendment to the Beaumont Industrial Development Corporation's first amendment to the Regulations for Receiving and Approving Applications for Financial Participation and Development III. A presentation on the Beaumont Hotel to be made by Robert Parsons VI . An inducement resolution for the issuance of bonds Beaumont Retirement Hotel MINUTES OF THE EMERGENCY MEETING OF THE BOARD OF DIRECTORS OF THE BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION The Board Directors of the Beaumont Industrial Development Corporation met at 4:30 P.M. August 28, 1984 in the third floor conference room, City Hall , Beaumont, Texas. Mayor William E. Neild, Audwin Samuel , David Wayne Moore, Nell Weisbach, Mike Brumley, Joe Deshotel and Wayne Turner were present constituting a quorum. Also present were Scot Sheldon, Counsel to the Urban Group, Lane Nichols, City Attorney. INDUCEMENT RESOLUTION Scot Sheldon relayed information to the board of directors conveyed to him ,in a telephone conversation with Robert Parsons of the Urban Group. He assured the directors, "low and moderate income tenants can be retained if the project is financed with industrial revenue bonds and a;written assurance can be supplied. Also, there are 140 existing tenants in the Beaumont Hotel . Chris Mayo of the Beaumont Housing Authority has a waiting list of 300 seniors in Beaumont for this type of housing. After rehabilitation of this hotel , occupancy could increase 100% from 140 existing tenants to 185 tenants, meeting part of the need for low income housing for seniors in Beaumont. " Beaumont Industrial Development Corporation August 28, 1984 Page 2 In a motion made by Joe Deshotel and seconded by Mayor Neild the board of directors unanimously approved the inducement resolution. Wayne Turner reiterated, "this inducement resolution is no guarantee bonds will be issued to the Urban Group for this project if it is found the project will not benefit the senior citizens and the City of Beaumont. " After learning from Scot Sheldon the earlier August 31, 1984 closing date was not imperative to the success of this deal Joe Deshotel rescinded his motion to approve the inducement resolution. The other directors agreed with him and rescinded their votes until Robert Parsons the director could make a presentation on the project to City Council . William E. Neild, President Joseph Deshotel , Secretary BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION FIRST AMENDMENT TO THE REGULATIONS FOR RECEIVING AND APPROVING APPLICATION FOR FINANCIAL PARTICIPATION AND DEVELOPMENT PROJECTS. WHEREAS, the Beaumont Industrial Development Corporation has heretofore adopted regulations for receiving and approving applications for financial participation in development projects; and, WHEREAS, the Board of Directors of the Beaumont Industrial Development Corporation desires to amend those regulations to change the definition of "closing fee" to read as follows: Closing fee--a fee of one percent ( 1% ) of the principal amount of bonds issued, but not less than Two Thousand Five Hundred Dollars ( $2 ,500) , payable to the corporation by an applicant upon delivery of bonds. Approved by the Beaumont Industrial Development Corporation this the day of 1984. President ATTEST : Secretary S E P `� � SUMMARY We are asking the Beaumont Industrial Development Corporation to review a request by the Urban group for $1,400,000 in IRB's to reh.abi:litate the Beaumont Hotel . This project is proposed by the Urban Group. They are requesting $1,400,000 in IRB's to acquire and rehabilitate the Beaumont Hotel . This hotel currently a senior citizens congregate facility located at 625 Orleans street has 185 rooms. It provides low and moderate income seniors with furnished rooms, two daily meals, maid services, recreational services and a social director. Proponents of this project will continue to lease rooms on a short- term basis to low and moderate income seniors. In addition to 28 existing jobs, 5 to 10 new jobs will be created. Before issuing an inducement resolution to rehabilitate the Beaumont Hotel we are requesting the Beaumont Industrial Development Board to review this project. MOORE, LANDREY, GARTH & JONES ATTORNEYS AT LAW LIBERTY-PEARL COMPLEX SUITE 1900 288 LIBERTY BEAUMONT, TEXAS 77701 JACK M. MOORE PHONE 409/B35-3891 RAY M. MOORE FLOYD A. LANDREY TYRRELL L. GARTH BRACK JONES, JR. p THOMAS G. KING August 28, 1984 SCOT E. SHELDON THOMAS E. KONILISZY Ms. Melody R. Greene CDBG Planner City of Beaumont P. 0. Box 3827 Beaumont, Texas 77704 RE: Beaumont Industrial Development Corporation $1,400,000 Industrial Development Revenue Bonds, Series 1984 (New Beaumont Hotel Project) Dear Melody: Enclosed as per our telephone conversation of this morning, please find one (1) copy of Resolution Prescribing the Form and Substance of an Agreement to Issue Bonds; Authorizing the Execution of such Agreement; and Containing Other Provisions Relating to the Subject Bonds and Agreement to Issue Bonds, with exhibits containing a description of the Project, which I would thank you to include on the agenda for the September 11, 1984, Board of Directors' meeting of the Beaumont Industrial Development Corporation. As we discussed, Mr. Robert E. Parsons, Partner of The Urban Group, a California limited partnership which will be the User of the Bond proceeds, will be present at the meeting to discuss the Project and answer any questions relating thereto. Should you have any questions concerning the enclosed documents, or if I can be of further assistance, please let me know. Otherwise, thanks again for your assistance. Very truly yours, MO LANDREY ARTH JONES cot E. e SES/sw Enclosures cc: Mr. Robert E. Parsons, Partner The Urban Group 1715 State Street Santa Barbara, CA 93101 G I,o� 3 ,© �,,,�' , AGREEMENT TO ISSUE BONDS THIS AGREEMENT TO ISSUE BONDS, entered into as of the day of September, 1984, by and between BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION (the "Issuer") , created pursuant to the Development Corporation Act of 1979, Article 5190.6, Vernon's Annotated Texas Civil Statutes (the "Act") , and The Urban Group, a California limited partnership (the "User") , for the purpose of carrying out the public purposes set forth in the Act, including the promotion and development of commercial enterprises within an Economically Depressed Area, within the meaning of the Act, and to promote and encourage employment and the public welfare therein; WITNESSETH: WHEREAS, the Mayor and the City Council of the City of Beaumont, Texas (the "Governing Body" and the "Unit," respectively), have authorized and approved the creation of the Issuer to act on behalf of the Unit within the Economically Depressed Area, located within the _ boundaries of the Unit, for the public purpose of furthering on behalf of the Unit the promotion of commercial development and expansion of the Economically Depressed Area and to promote and encourage employment and the public welfare; and WHEREAS, the Issuer is authorized by the Act to acquire, construct, improve, maintain, equip, and furnish and lease to or sell projects consisting of land, buildings, equipment, facilities and improvements (one or more) , as defined in the Act, found by the Issuer to be required or suitable for the commercial development and expansion and for use by commercial enterprises and in the furtherance of the public purposes of the Act, and which are located within an Economically Depressed Area, within the meaning of the Act, and the Issuer is further authorized to issue its bonds for the purpose of paying all or part of the costs of a project; and WHEREAS, the User desires to acquire, construct and rehabilitate a facility (the "Project") , more particularly described in Exhibit A attached hereto, within the Unit, which Project is suitable for the promotion of commercial development and expansion of an Economically Depressed Area, the promotion of employment in the Unit, and for the use 'by commercial enterprises; and WHEREAS, pursuant to the Act, the Issuer is authorized to issue the bonds hereinafter described, which bonds shall never constitute an indebtedness or pledge of the faith and credit of the State of Texas (the "State"), of the Unit, or of any other political corporation, subdivision or agency of the State within the meaning of any State constitutional or statutory provision, shall never be paid in whole or in part out of any funds raised or to be raised by taxation or out of any other funds of the Unit, and shall never be paid in whole or in part out of any funds of the Issuer, except those derived from or in connection with the sale or lease of the Project or the loan of funds to finance the Project; and WHEREAS, to promote and encourage employment and the public welfare, the Issuer is agreeable to issuing, at the request of the User, one or more series of the Issuer's industrial development revenue bonds (the "Bonds") for the purpose of paying all or part of the costs of acquiring, constructing and rehabilitating the Project, or for the purpose of loaning the proceeds to the User in order to provide temporary or permanent financing of all or part of the costs of acquiring, constructing and rehabilitating the Project, and the Issuer and the User deem it desirable and proper that this Agreement to Issue Bonds constitute a formal record of such agreement and understanding in order that the User may proceed with or provide for the acquisition, construction and rehabilitation of the Project; and WHEREAS, the User has evidenced a desire to cooperate with the Issuer in the acquisition, construction and rehabilitation of the Project and for the Issuer to authorize and issue the Bonds in the aggregate principal amount not to exceed $2,000,000.00, to provide the funds to defray all or part of the costs of the acquisition, construction and rehabilitation of the Project; and WHEREAS, the proceeds of the Bonds shall be loaned by the Issuer, pursuant to a loan agreement, to the User in order to provide temporary and permanent financing of all or part of the costs of the Project, and the loan payments therefor will be sufficient to pay the principal of and any premium and interest on the Bonds; and WHEREAS, it is the desire of the Issuer that the acquisition, construction and rehabilitation of the Project occur at the earliest possible time so as to promote and encourage employment and the public welfare within the Unit; and WHEREAS, it is intended that this Agreement to Issue Bonds shall constitute "some other similar official action" toward the issuance of the Bonds, within the meaning of Section 1.103-8(a)(5) of the Treasury Regulations issued pursuant to Section 103(b) of the Internal Revenue Code of 1954, as amended (the "Code"); NOW, THEREFORE, in consideration of the premises and other good and valuable consideration and of the mutual benefits, covenants and agreements herein expressed, the Issuer and the User agree as follows: 1. The User shall commence with the acquisition, construction and rehabilitation of the Project, which Project will be in furtherance of the public purposes of the Issuer and the Unit as aforesaid, and the User will provide, or cause to be provided, at its expense, the necessary interim financing to expedite the commencement of the acquisition, construction and rehabilitation of the Project. 2 On or prior to the issuance of the Bonds, the User will enter into a loan agreement on an installment payment basis (the "Loan Agreement") with the Issuer under which the Issuer will make a loan to the User for the purpose of providing temporary and/or permanent financing of all or part of the costs of the Project, and the User will make installment loan payments sufficient to pay the principal of and any premium and interest on such series of Bonds. The Bonds shall never constitute an indebtedness or pledge of the faith and credit of the State, the Unit, or any other political corporation, subdivision or agency of the State within the meaning of any State constitutional or statutory provision, and the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation or any other funds of the Unit, and shall be payable from the funds of the Issuer derived from or in connection with the sale or lease of the Project or the loan of the proceeds of the Bonds. 2. Upon receipt of a ruling from the Internal Revenue Service (or the opinion of bond counsel acceptable to the Issuer) that interest paid on the Bonds is exempt from federal income taxation, the Issuer hereby agrees to issue, pursuant to the terms of the Act, its tax exempt industrial development revenue bonds styled, "Beaumont Industrial Development Corporation Industrial Development Revenue Bonds, Series 1984 (New Beaumont Hotel Project) ," in the original principal amount not to exceed $2,000,000.00, maturing in such amounts and at such times, bearing interest at the rates, payable on the dates and having such optional and mandatory redemption features and prices as are approved in writing by the User. The Corporation will deliver the Bonds to Security Pacific National Bank (the "Underwriter") or other purchaser or underwriter designated by the User and will cooperate to the fullest extent in facilitating the sale, issuance and delivery of the Bonds. 3. The Issuer and the User agree that the Bonds may be issued either at one time or in several series from time to time as the User shall request in writing; provided, however, that the parties agree that the Bonds will be issued in an aggregate principal amount not to exceed the amount which is the subject of a ruling or rulings or opinion or opinions as aforesaid. A request in writing for issuance of one or more series of Bonds shall not affect the obligation hereunder of the Issuer to issue the remaining Bonds as written requests therefor are received. It is further agreed that the proceeds of the Bonds or portions thereof, whether or not issued in a series, shall not be invested so as to have the Bonds or a portion thereof constitute arbitrage bonds within the meaning of Section 103(c) of the Code and applicable regulations promulgated pursuant thereto. 4. The payment of the principal of and any premium and interest on the Bonds shall be made solely from monies realized from the sale or lease of the Project or from monies realized from the loan of the proceeds of the Bonds to finance all or part of the costs of the Project. 3 S. The costs of the Project (the "Project Costs") may include any cost of acquiring, constructing, rehabilitating, reconstructing, improving or expanding the Project. Without limiting the generality of the foregoing, the Project Costs shall specifically include the cost of the acquisition of all land, right-of-way, property rights, easements and interests, the cost of all machinery and equipment, financing charges, interest prior to and during construction and for one year after completion of construction, whether or not capitalized, necessary reserve funds, costs of estimates and of engineering and legal services, plans, specifications, surveys, estimates of cost and revenue, other expenses necessary or incident to determining the feasibility and practicability of acquiring, constructing, rehabilitating, reconstructing, improving and expanding the Project, administrative expenses and such other expenses as may be necessary or incident to the acquisition, construction, reconstruction, rehabilitation, improvement and expansion of the Project, the placing of the Project in operation and all incidental expenses, costs and charges relating to the Project not enumerated above. The parties agree, upon request, to provide or to cause to be provided to each other any data or information which may be reasonably required to verify any of the Project Costs enumerated in this paragraph. The User agrees that it will be responsible for and pay any Project Costs incurred prior to issuance of the Bonds and will pay all Project Costs which are not or cannot be paid or reimbursed from the proceeds of the Bonds. 6. The User agrees that it will at all times indemnify, defend and hold harmless the Issuer, the Board of Directors of the Issuer, the Unit, the Mayor and the City Council of the City of Beaumont, Texas, and any of the officers, directors, employees, agents, servants and any other party acting for or on behalf of the Issuer or the Unit (such parties being hereinafter referred to as the "Indemnified Parties") against any and all losses, costs, damages, expenses and liabilities (collectively, the "Losses") of whatsoever nature (including, but not limited to, attorneys' fees, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) directly or indirectly resulting from, arising out of or relating to one or more Claims (as hereinafter defined) , even if such Losses or Claims, or both, directly or indirectly result from, arise out of or relate to, or are asserted to have resulted from, arisen out of or be related to, in whole or in part, one or more negligent acts or 'omissions of the Indemnified Parties in connection with the issuance of the Bonds or in connection with the Project. The term "Claims" as used herein, shall mean all claims, lawsuits, causes of action and other legal actions and proceedings of whatsoever nature, including, but not limited to, claims, lawsuits, causes of action and other legal actions and proceedings involving bodily or personal injury or death of any person or damage to any property (including, but not limit to, persons employed by the Issuer, the Unit, the User or any other person and all property owned or claimed by the Issuer, the Unit, the User, any affiliate of the User or any other 4 person) or involving damages relating to the issuance, offering, sale or delivery of the bonds brought against any Indemnified Party or to which any Indemnified Party is a party, even if groundless, false or fraudulent, directly or indirectly resulting from, arising out of or relating to the issuance, offering, sale or delivery of the Bonds or the design, construction, installation, operation, use, condition, occupancy, maintenance or ownership of the Project or any part thereof. The obligations of the User shall apply to all Losses or Claims, or both, that result from, arise out of or are related to any event, occurrence, condition or relationship prior to termination of this Agreement to Issue Bonds, whether such Losses or Claims, or both, are asserted prior to termination of this Agreement to Issue Bonds or thereafter. None of the Indemnified Parties shall be liable to the User for, and the User hereby releases each of them from all liability to the User for, all injuries, damages or destruction of all or any part or parts of any property owned or claimed by the User that directly or indirectly result from, arise out of or relate to the design, construction, operation, use, condition, occupancy, maintenance or ownership of the Project or any part thereof, even if such injuries, damages or destruction directly or indirectly result from, arise out of or relate to, in whole or in part, one or more negligent acts or omissions of the Indemnified Parties in connection with the issuance of the Bonds or in connection with the Project. Each Indemnified Party, as appropriate, shall reimburse the User for payments made by the User to the extent of any proceeds, net of all expenses of collection, actually received by them from any insurance with respect to the Loss sustained. Each Indemnified Party, as appropriate, shall have the duty to claim any such insurance proceeds and the Indemnified Party, as appropriate, shall assign its respective rights to such proceeds, to the extent of such required reimbursement, to the User. In case any action shall be brought, or to the knowledge of any Indemnified Party threatened, against any of them in respect of which indemnity may be sought against the User, the Indemnified Party shall promptly notify the User in writing and the User shall have the right to assume the investigation and defense thereof, including the employment of counsel approved by the Indemnified Party and the payment of all expenses. The Indemnified Party shall have the right to employ separate counsel in any such action and to participate in the investigation and defense thereof, and the fees and expenses of such counsel shall be paid by the User as and when incurred by the Indemnified Party; provided that the User shall not, in connection with any one action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of more than one separate firm of attorneys for the Indemnified Party, which firm shall be designated in writing by said Indemnified Party. The Indemnified Party, as a condition of such indemnity, shall use its best efforts to cooperate with the User in the defense of any such action or claim. The User shall not be liable for any settlement of any such action without its consent, but if any such action is settled with the 5 consent of the User, or if there shall be entered final judgment for the plaintiff in such action, the User agrees to indemnify and hold harmless the Indemnified Party from and against any Loss by reason of such settlement or judgment. The provisions of this paragraph shall survive the expiration or termination of this Agreement to Issue Bonds. 7. The User agrees to pay as part of the Project Costs any cost of the Issuer which is payable under any management agreement with the Unit or is otherwise incidental to administration of the Bonds, including but not limited to any annual charges computed at rates per annum which are agreeable to the User and are not in excess of the maximum allowed by law on the principal amount of the outstanding Bonds of each series issued pursuant to this Agreement to Issue Bonds, said annual charge to be due and payable on each anniversary date of the Bonds; provided, however, that the fee payable pursuant to this Section 7 may, at the option of the User, be made in a single payment from the proceeds of each series of Bonds in an amount equal to the total of all such annual charges (computed upon the assumption that Bonds of such series will mature, unless redeemed pursuant to any mandatory sinking fund redemption requirements, on the dates and in the amounts set forth in the resolutions(s) or indenture(s) of trust authorizing issuance of the series of Bonds) discounted to present value at discount rate(s) equal to the interest rate(s) on such outstanding Bonds; provided, further, that said fee shall be in addition to all other amounts payable by the Issuer for costs incurred by the Issuer incident to administration of the Bonds pursuant to any such management agreement. 8. If within, three (3) years from the date hereof (or such later date as shall be mutually satisfactory to the Issuer and the User) the Issuer and the User shall not have agreed to mutually acceptable terms for the Bonds and the sale and delivery thereof and mutually acceptable terms and conditions of the Project, the User agrees that it will pay the Issuer for all unpaid Project Costs which the Issuer shall have incurred and this Agreement to Issue Bonds shall thereupon terminate. In the event that the User elects, prior to any such termination, not to proceed with the issuance of the Bonds for any reason, it shall so notify the Issuer in writing, and shall promptly pay to the Issuer all Project Costs incurred by the Issuer prior to such notification, and if payment is so made, the User's obligations under Paragraph 5 above shall terminate from and after the date of such notification. 9. The User may, without the consent of the Issuer, transfer or assign all or any part of this Agreement to Issue Bonds, or transfer or assign any or all of its rights and delegate any or all of its duties hereunder to any third person, but no such transfer, assignment or delegation shall, without the written consent and approval of the Issuer, relieve the User of its liability for payment of Project Costs under Paragraphs 5, 7 and 8 hereof or indemnification under Paragraph 6 hereof. 6 10. As a condition precedent to the issuance of the Bonds, the Issuer shall receive an opinion from qualified bond counsel approved by the Issuer, that all prerequisites to the issuance of the Bonds have been fully satisfied, including, but not limited to, the execution of all appropriate agreements, trust indentures, collateral assignments, mortgages, elections, guaranty agreements and other matters which, in the opinion of bond counsel, are necessary for the Issuer to legally issue the Bonds in conformity with the requirements of the Act and the Code. 11. This Agreement to Issue Bonds and the accompanying authorizing resolution shall be deemed and construed as a resolution authorizing the issuance of the Bonds and other similar official action of the Issuer, acting by and through its Board of Directors, toward the issuance of the Bonds as herein contemplated. IN WITNESS WHEREOF, Beaumont Industrial Development Corporation, acting pursuant to a resolution of its Board of Directors, and The Urban Group, a California limited partnership, have caused this Agreement to Issue Bonds to be executed and attested by their duly authorized officers or representatives as of the date and year first above written. BEAUMONT INDUSTRIAL DEVELOPMENT ATTEST: CORPORATION By Secretary President THE URBAN GROUP, a California limited partnership BY: Alyce A. Parsons ITS: Managing Partner BY: Richard W. Sanders ITS: Managing Partner 7 EXHIBIT A DESCRIPTION OF PROJECT PROPOSED BY THE URBAN GROUP TO BE FINANCED BY BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION The Project to be financed consists of the acquisition, construction and rehabilitation of a retirement hotel containing in the aggregate at least 100,000 square feet. The Project is to be located on a tract of land situated at 625 Orleans Street, Beaumont, Texas. The legal description of the Project is attached hereto as Exhibit A-1. The Project is generally described as follows: 1. Acquisition of the existing 100,000 square foot retirement hotel and rehabilitation and construction of same pursuant to plans and specifications provided by an architect of the User's choice, to be approved by the Issuer and the Trustee. 2. Development of the balance of the tract into parking area, landscaping, and related amenities. 3. Necessary and adequate equipment, furnishings, and fixtures to be installed within the buildings. 4. The estimated total cost of the Project will not exceed $2,000,000. 5. It is estimated that the Project will provide for the creation of 5 to 10 new jobs within the Economically Depressed Area. 8 t t RESOLUTION PRESCRIBING THE FORM AND SUBSTANCE OF AN AGREEMENT TO ISSUE BONDS; AUTHORIZING THE EXECUTION OF SUCH AGREEMENT; AND CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT BONDS WHEREAS, BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION (the "Issuer") is authorized by the Development Corporation Act of 1979, Article 5190.6, Vernon's Annotated Texas Civil Statutes (the "Act") to issue revenue bonds for the purpose of financing the costs of projects consisting of land, buildings, equipment, facilities and improvements (one or more) found by the Board of Directors (the "Board") of the Issuer to be required or suitable for the promotion of commercial development and expansion and for use by commercial enterprises and in the furtherance of the public purposes of the Act, and which are located within an "Economically Depressed Area," within the meaning of the Act; and WHEREAS, the Issuer now desires to authorize, issue and sell its tax exempt industrial development revenue bonds, to the extent authorized by law, to provide funds to defray all or part of the costs of acquiring, constructing and rehabilitating a certain commercial facility, to be acquired, constructed and rehabilitated by or to be leased or sold to The Urban Group, a California limited partnership, (the "User") but the Issuer anticipates that the acquisition, construction and rehabilitation of such facilities may commence prior to the final sale and delivery of such bonds; and WHEREAS, the User and the Issuer desire that the Issuer adopt a bond resolution with respect to the bonds or take some other similar official action toward the issuance of such bonds prior to the commencement of acquisition, construction or rehabilitation of such facilities; and WHEREAS, the City of Beaumont, Texas (the "Unit"), has authorized and approved creation of the Issuer to act on its behalf to further certain public purposes of the Unit and has approved or will approve the attached Agreement to Issue Bonds between the Issuer and the User; and WHEREAS, in order to finance the Project (as hereinafter defined) , the Issuer proposes to issue its tax exempt industrial development revenue bonds styled, "Beaumont Industrial Development Corporation Industrial Development Revenue Bonds, Series 1984 (New Beaumont Hotel Project) ," (the "Bonds"); NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF BEAUMONT INDUSTRIAL DEVELOPMENT CORPORATION, THAT: Section 1. The Issuer hereby authorizes and agrees that it will issue and sell the Bonds from time to time, in one or more series, pursuant to the provisions of Texas law in a principal amount sufficient to pay all or part of the costs of acquiring, constructing and rehabilitating the project (the "Project") described in Exhibit A to the Agreement to Issue Bonds, attached hereto and fully incorporated into this Resolution by reference as though set forth verbatim herein, together with all costs of authorization, sale and issuance of the Bonds. Section 2. The Bonds in an aggregate principal amount not to exceed $2,000,000.00 are authorized to be issued, pursuant to this Resolution and the Agreement to Issue Bonds attached hereto, for the purpose of paying the costs of acquiring, constructing, rehabilitating, reconstructing, improving, expanding, equipping or furnishing the Project. Section 3. The Issuer shall enter into a loan agreement with the User providing for the financing of all or part of the costs of the Project, as more fully described in the Agreement to Issue Bonds. The Bonds shall be issued and funded pursuant to a trust indenture to be prepared by bond counsel, in the manner set forth in the attached Agreement to Issue Bonds. Section 4. The Board hereby finds, determines and declares that (i) the Project is required and suitable for promotion of commercial development and expansion, the promotion of employment and for use by commercial enterprises within an Economically Depressed Area, within the meaning of the Act, (ii) the User has the business experience, financial resources and responsibility to provide reasonable assurance that the Bonds and the interest thereon to be paid from, or by reason of, payments made by the User under the lease, sale or loan agreement will be paid as the same become due, and (iii) the Project is in furtherance of the public purpose of the promotion and development of new and expanded commercial enterprises within an Economically Depressed Area and to promote and encourage employment and the public welfare. Section 5. The Agreement to Issue Bonds by and between the Issuer and the User, in substance and in form substantially as shown in the attachment hereto, is hereby approved, and the President and the Secretary of the Issuer are hereby authorized to execute and attest such Agreement for and on behalf of the Issuer. Section 6. This Resolution, together with the Agreement to Issue Bonds, shall be deemed and construed as a "resolution authorizing the issuance of the aforesaid Bonds or some other similar official action toward the issuance of the Bonds", within the meaning of 26 C.F.R. Section 1.103-8(a) (5) . Section 7. Security Pacific National Bank is hereby authorized and approved to act as underwriter (the "Underwriter") of the Bonds. Section 8. The President or any Vice President of the Issuer is hereby specifically authorized: (i) to approve, execute, change or amend the loan agreement, trust indenture, deed of trust and security agreement, collateral assignment and security agreement, bond form, 2 '� rr and any and all other closing documents authorized by this Resolution or the Agreement to Issue Bonds attached hereto as shall be deemed necessary or appropriate for the sale, issuance and delivery of the Bonds and not contrary to the general tenor hereof or thereof, and (ii) to take all necessary and reasonable actions, pursuant to the advice of bond counsel and in conformity with the Act, to effectuate the issuance of the Bonds and to take all action necessary or desirable in conformity with the Act to finance the Project and for carrying out, giving effect to, and consummating the transactions contemplated by the Bonds, this Resolution, the Agreement to Issue Bonds attached hereto, and the documents referenced herein and therein, including, without limitation, the execution and delivery of all closing documents, referred to hereinabove, in connection with the issuance of the Bonds. Section 9. Allied Merchants Bank or other financial institution having trust powers and acceptable to the Issuer is hereby authorized and approved to act as Trustee under the trust indenture, thereby serving as Registrar and Paying Agent under said trust indenture. Section 10. After any of the Bonds are issued, this Resolution (together with any subsequent resolutions pertaining to the issuance of the Bonds) shall be and remain irrepealable until the Bonds and all interest thereon shall have been fully paid or provisions for payment made pursuant to the trust indenture. Section 11. If any section, paragraph, clause or provision of this Resolution or the Agreement to Issue Bonds attached hereto and incorporated herein by reference shall 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 Resolution. PASSED AND APPROVED this the day of September, 1984. Directors of Beaumont Industrial Development Corporation 3 CALENDAR * Monday, September 10 - City Hall 9:00 A.M. - Meeting * 10:00 A.M. - City Hall Meet w/ Jeanelle Keel , Program for Human Services * 10:30 A.M. - City Hall Meet w/ Patrick Wallace * 1:30 P.M. Meeting - * 4:00-6:00 P.M. - 8th Floor Gray Library Reception honoring Dr. & Mrs. Dennis McCabe; Dr. & Mrs. Charles Turco; Dr. & Mrs. John Idoux; Dr. & Mrs. Roy Sullivan (Dr. David Geddes) * Tuesday, September 11 - 7:30 A.M. - Breakfast 12:00 Noon - City Hall Budget Session 1:15 P.M. - Council Chambers Council Meeting, followed by Work Session Wednesday; "September 12 - Council Chambers 2:00 P.M. - Board of Adjustment Public Hearing * MAYOR r CALENDAR Page 2 * Thursday, September 13 - Beaumont Plaza Holiday Inn 8:30 A.M. - Read Proclamation - 8th Annual State School Musical Festival (Martin Woodard - MHMR) * 9:30 A.M. - City Hall Meeting 4:00 P.M. - Board Room, Beaumont Public Library Library Commission Meeting 6:30 P.M. - Hospitality Hour - Plum Tree Restaurant; 7:30 P.M. - Dinner U.S. Highway 59 S. TML Region 16 Meeting, hosted by City of Livingston * Saturday, September 15 - 5:OD P.M. BBQ preceding Lamar Football Game (YMBL/Cardinal Club) * Sunday, September 16 - Redeemer Lutheran Church; 4330 Crow Road 3:00 P.M. - Celebration Worship Service 4:30 P.M. - Anniversary Dinner 25th Anniversary Celebration (Rev. W.H.B. Fehl , Jr.) Monday, 'September 17 - Council Chambers 3:45 P.M. - Joint Planning & Zoning Public Hearing (COUNCIL QUORUM REQUIRED) * MAYOR