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RES 1365 05/13/2008 OF ``" < "'Wy�µµlllll Te x AS RESOLUTION NO. 1365 A RESOLUTION OF THE CITY OF CIBOLO, TEXAS, (CITY) AS REGARDS LAREDO I-35 NORTH, LTD., A TEXAS LIMITED PARTNERSHIP, ITS SUCCESSORS AND ASSIGNS (THE "OWNER"), ENTERING INTO A CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENT (THIS "AGREEMENT") RELATIVE TO 80.480 ACRES OF LAND LOCATED AT THE SOUTHWEST CORNER OF I-35 AND WIEDERSTEIN ROAD. WHEREAS, the City Council of the City has authorized certain economic development grants to the Owner in recognition of the positive economic benefits which will accrue to the City through the Owner's efforts to develop approximately 80 acres of land, the majority of which is located in the City of Cibolo, Guadalupe County, Texas, as more particularly described and/or depicted on the attached Exhibit "A" (the "Property"), as a retail project; WHEREAS, the CEDC desires to offer incentives to the Owner over a period of time which will enable the Owner to develop the Property as an integrated, planned development retail project ("Protect") in substantial conformity with the standards set forth in the Planned Development (PD) (herein defined) and agreed upon with the City of Cibolo and with an overall theme highlighting Cibolo's heritage and location on the Old Spanish Trail and showcasing the Project as the gateway to the City of Cibolo, as illustrated by the Project's name "Cibolo Crossing at Old Spanish Trail"; WHEREAS, the City believes that the development of the Property will contribute to the economic development of the City by increasing ad valorem taxes, generating sales tax and employment, and will also provide a mechanism for ensuring the quality and consistency of development standards for the Project; WHEREAS, the CEDC believes that the Project is suitable for certain infrastructure necessary to promote, expand and develop new business enterprises; and WHEREAS, in consideration of the mutual benefits described in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City of Cibolo and the Owner make such agreement, as allowed by the City of Cibolo, Texas and as authorized by Chapter 380, Texas Local Government Code. NOW, THEREFORE BE IT RESOLVED by the CITY COUNCIL OF THE CITY OF CIBOLO, TEXAS, THAT: SECTION 1. The City of Cibolo and its' agents are hereby authorized to execute all documents necessary to accomplish the purposes of this resolution. SECTION 2. This resolution shall be in full force and effect from and after its final adoption. APPROVED AND ADOPTED on this the 13th day of May,2008. f kq e ifer H an, ayor Attest: /0 Peggy Cimics, City Secretary EXHIBIT A CHAPTER 380 ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF CIBOLO, TEXAS AND LAREDO I-35 NORTH, LTD. OR ITS AFFILIATES This Chapter 380 Economic Development Agreement (this "Agreement") is entered into between Laredo I-35 North, Ltd., a Texas limited partnership, its successors and assigns (the "Owner"), The City of Cibolo, Texas, a home rule city (the "City"). The Owner and City may be referred to jointly herein as "the Parties" and individually as a"Party." RECITALS WHEREAS, the City Council of the City has authorized the City to make certain economic development grants to the Owner in recognition of the positive economic benefits which will accrue to the City through the Owner's efforts to develop approximately 80 acres of land, the majority of which is located in the City of Cibolo, Guadalupe County, Texas, as more particularly described and/or depicted on the attached Exhibit "A" (the "Property"), as a retail project; WHEREAS, the City desires to offer incentives to the Owner over a period of time which will enable the Owner to develop the Property as an integrated, planned development retail project ("Project") in substantial conformity with the standards set forth in the PD (hereinafter defined) and with an overall theme highlighting Cibolo's heritage and location on the Old Spanish Trail and showcasing the Project as the gateway to the City, as illustrated by the Project's name "Cibolo Crossing at Old Spanish Trail"; and WHEREAS, the City believes that the development of the Property will contribute to the economic development of the City by increasing ad valorem taxes, generating sales tax and employment, and will also provide a mechanism for ensuring the quality and consistency of development standards for the Project. NOW, THEREFORE, in consideration of the mutual benefits described in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Owner agree as follows: 1 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 1. Authority The City's execution of this Agreement is authorized by Chapter 380, Texas Local Government Code, and constitutes a valid and binding obligation of the City subject to the condition precedent that Owner completes development of the Project as specified herein. The Owner's execution and performance of this Agreement constitutes a valid and binding obligation of Owner if the Owner proceeds with the development of the Property. The City acknowledges that the Owner is acting in reliance upon the City's performance of its obligations under this Agreement in making its decision to commit substantial resources and money to develop the Property and Owner acknowledges that City is acting in reliance upon Owner's performance of its obligations under this Agreement in making its decision to commit substantial resources to this Project. 2. Definitions As used in this Agreement, the following words or phrases shall have the following meanings: 2.1 "Act of Default or Defauit" means failure to timely, fully, and completely comply with one or more requirements, obligations, duties, terms, conditions or warranties, as stated in this Agreement. City may accept substantial compliance in lieu of full compliance by waiving in writing such Act of Default. 2.2 "Actual Project Sales Tax" means the One Cent Sales Tax Revenue collected by the City, during each year, from all applicable retail stores, restaurants, and other business, located within the Project, a portion of which will be paid to Owner in the form of Chapter 380 Payments, as set forth in this Agreement. 2.3 Ad Valorem Tax Base Line Year" means the final approved taxable value of all the Project's unimproved real property by the Guadalupe Central Appraisal District for the year 2007 from which all increases in ad valorem taxable value shall by measured. 2.4 -"Ad Valorem Tax Effective Date" means January 1 st of the first calendar year following the City's issuance of Certificate of Occupancy for any building within the Project, as defined below. 2.5 "Ad Valorem Tax Revenues" means the amount of property taxes collected by the City on the Property, including any improvements, a portion of which will be paid to Owner in the form of Chapter 380 Payments, as defined below. 2 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 2.6 "Aggregate Hotel Tax" means the total annual amount of Hotel Tax Revenues collected by the City, resulting from the imposition of a hotel tax. 2.7 "Assessed Taxable Value" means ad valorem tax values set annually by the Cibolo Central Appraisal District for real property and improvements on the Property and does not include on-site business personal property. 2.8 "Architectural Upgrades" means the items more particularly described on Exhibit"B" attached hereto. 2.9 "CEDC" means the Cibolo Economic Development Corporation. 2.10 "Certificate of Occupancy" shall mean that final document issued by the City of Cibolo, Texas, entitled "Certificate of Occupancy", indicating that all applicable codes, regulations, and ordinances enforced by the City of Cibolo have been unconditionally, fully and completely complied with in all respects. A Certificate of Occupancy shall not include a certificate issued in error, mistake or misrepresentation of facts, nor any temporary or conditional document authorizing temporary or conditional occupancy. 2.11 "Chapter 380 Payment(s)" means the amount(s) paid by the City to the Owner under this Agreement. 2.12 "City of Cibolo or City" means the governing municipal corporation that is legally authorized to control the area that is within the city limits of the City of Cibolo, and the area that is within the City's ETJ and/or Guadalupe County, Texas. 2007. 2.13 "Code" means the Cibolo Code of Ordinances in effect on September 1, 2.14 "Designated Successors and Assigns" shall mean (i) an entity to which Owner assigns (in writing) all or a portion of its rights and obligations contained in this Agreement pursuant to Section 13.2, (ii) any entity which is the successor by merger or otherwise to all or substantially all of Owner's assets and liabilities including, but not limited to, any merger or acquisition pursuant to any public offering or reorganization to obtain financing and/or growth capital; or (iii) any entity which may have acquired all of the outstanding stock or partnership interest of Owner. 2.15 "Effective Date" means the date this Agreement has been signed by all Parties. 2.16 "Event of Bankruptcy or Insolvency" shall mean the dissolution or termination of a party's existence as a going business, insolvency, appointment of receiver for any part of such party's property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment 3 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against such party and such proceeding is not dismissed within ninety(90) days after the filing thereof. 2.17 "Force Majeure" means an� :.vent in which any Party shall be delayed, hindered in or prevented from the performance of any act required under this Agreement by reason of strikes, lockouts, labor troubles, inability to procure materials, failure of power, unavailability of any utility service, restrictive governmental laws or regulations, riots, insurrections, the act, the failure to act, or default of another Party or a material worsening of current conditions caused by acts of terrorism or war (whether or not declared), or severe weather occurring after the execution of this Agreement, which materially impair the Party's ability to perform any act required under this Agreement. 2.18 "Gross Leasable Space" means that space under roof and air conditioned and heated and ready for finish-out work for a selected occupant. 2.19 "Gross Taxable Sales" as defined by the Texas Tax Code and being the amount of taxable sales during a fiscal year. 2.20 "Hard Costs" means the actual costs of construction incurred by Owner for the Reimbursable Items (as hereinafter defined) reflected on Exhibit "C" attached hereto. 2.21 "Hotel Requirements" means an attraction that (i) is eligble to receive revenue from the municipal hotel occupancy tax pursuant to Section 351.101 of the Tax Code, (ii) is projected to draw at least fifty (50) visitors per year to the Project, and (iii) is approved at the sole discretion of the City Council. Examples of an attraction that may satisfy the Hotel Requirements, include, but are not limited to a museum, public/historical plaza, amphitheatre or botanical gardens. 2.22 "Hotel Tax Revenue" means the Aggregate Hotel Tax collected by the City, during each year, from all applicable hotels located within the Project, a portion of which will be paid to Owner in the form of Chapter 380 Payments, as set forth in this Agreement. 2.23 "Increased Ad Valorem Tax Revenues" means for any given calendar year the difference between (x) the Ad Valorem Tax Revenue minus (y) the ad valorem taxes that would have been collected by the City for that calendar year based on the Assessed Taxable Value on January 1, 2007. 2.24 "Insolvent" means failure to timely pay debts in the ordinary course of business or can not pay all debts when and as they become due, or is insolvent within the meaning of the federal bankruptcy law. 4 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 2.25 "Maximum Reimbursement Amount" means the actual Hard Costs and Soft Costs incurred by the Owner for construction of the Reimbursable Items; provided, however the sum of Hard Costs and Soft Costs shall not exceed a combined total of $15,220,769. The Parties hereby acknowledge and agree that the dollar amounts allocated to each line item and category shown on Exhibit "C" attached hereto are estimates only and Owner shall have the right to re-allocate the dollar amounts between the line items and categories so long as the Maximum Reimbursement Amount is not exceeded. Notwithstanding the above or anything to the contrary contained in this Agreement, the City hereby acknowledges and agrees that the Maximum Reimbursement Amount (i) may be increased pursuant to Sections 2.31 and 5.2 of this Agreement, and (ii) may be increased by up to $319,687.80 in the event that the actual Hard Costs and/or Soft Costs of the Public Improvements (as hereinafter defined and as referenced on Exhibit "C") (excluding the Offsite Wiederstein ROW Dedication) exceed $2,131,252.00. 2.26 "One Cent Sales Tax Revenue" means the total annual amount of sales tax revenues collected by the City resulting from the imposition of a one percent municipal sales tax, such as that presently in effect pursuant to Section 321.101(a) and Section 321.103, Texas Tax Code. 2.27 "Owner" means Laredo I-35 North, Ltd., a Texas limited partnership, incorporated and authorized to do business in the State of Texas. 2.28 Intentionally Deleted. 2.29 "Program" means the economic development program established by the City, as authorized by Chapter 380, Texas Local Government Code, to promote local economic development and stimulate business and commercial activity within the City. 2.30 "Project" means Owner's planned development of approximately 80 acres, more particularly described on Exhibit "A" attached hereto. The Project is identified as the "Cibolo Crossing at Old Spanish Trail" Project which (i) shall consist of an overall theme highlighting Cibolo's heritage and location on the Old Spanish Trail and showcasing the Project as a gateway to the City; and (ii) may be constructed in phases as set forth herein in Section 7A. 2.31 "Public Improvements" shall mean (i) the construction of the widening of Old Wiederstein Road (the "Old Wiederstein Expansion"), (ii) the construction of the deceleration lanes on I-35 (the "I--35 Decel Lanes"), and (iii) any signalizations and right- of-way dedications related to the foregoing, as each are more particularly described/depicted on Exhibit "D" attached hereto and made a part hereof,. Notwithstanding the above, if Owner is required to construct any offsite improvements (due to lack of capacity in or inability to tap into the CCMA Wastewater Line (herein so called) more particularly shown on Exhibit "D-1" attached hereto or for any other reason) ("Additional Offsite Wastewater Improvements"), in order to obtain wastewater 5 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc service to the Property, such Additional Offsite Wastewater Improvements shall be included in the definition of "Public Improvements" for purposes of this Agreement and the Maxiumum Reimbursement Amount shall be increased by the amount of the Hard Costs and Soft Costs of such Additional Offsite Wastewater Improvements. 2.32 "PD" means the Planned Unit Development for Cibolo Town Center at Old Spanish Trail dated of even date herewith. 2.33 "Reimbursable Items" means collectively (i) the Public Improvements; (ii) the Architectural Upgrades; (iii) any payments made by Developer on behalf of the City to the City of Schertz or CCMA in order to obtain wastewater capacity in the CCMA Wastewater Line for the Project; and (iv) Attorney's fees paid by Owner to City in accordance with Section 14.8. of this Agreement. 2.34 "Reimbursement Term" means, for purposes of sales tax reimbursements, a twenty (20) year period beginning on the first day of the first fiscal year after the City has received sales tax revenue from the Property and continuing for each consecutive year through the end of the 20th fiscal year. For purposes of ad valorem tax reimbursements, "Reimbursement Term" shall mean a twenty (20) year period beginning on January 1St of the first fiscal year after the City has received sales tax revenue from the Property and continuing for each consecutive year until December 31st following the end of the 20th fiscal year. 2.35 "Soft Costs" mean costs incurred by Owner for engineering, design, insurance, permits, project management (including contractor general conditions expenses), and all other costs associated with construction of the Reimbursable Items which are not included in the Hard Costs, as specifically detailed on Exhibit "C" attached hereto. 3. Term This Agreement will become enforceable upon the Effective Date and will terminate on the first to occur of. (a) the expiration of the Reimbursement Term; (b) upon receipt by the Owner of payments made by the City of the Maximum Reimbursement Amount; or (c) upon termination as provided for herein, whichever occurs first (the "Term"). In recognition of the fact that Chapter 380 Payments are, by necessity, calculated and paid after taxes have been levied by and paid to the City, the Term of this Agreement will be deemed extended until any Chapter 380 Payments relating to Actual Project Sales Tax and Increased Ad Valorem Tax Revenues attributable to the specified Term of the Agreement have been paid by the City to the Owner. Notwithstanding the above, the design criteria/development standards set forth in Section 4 of this Agreement shall be perpetual and shall not terminate pursuant to the provisions set forth above. 6 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 4. Development Standards The Project shall be designed and built generally in accordance with the PD. 5. Utility Service Commitment 5.1 The City guarantees that upon payment of impact fees the City will have appropriate capacity to provide wastewater service to the Property for at least 736.7 Equivalent Dwelling Units ("EDUs"). For purposes herein, 1 EDU shall be equivalent to 300 gallons per day of wastewater usage. If the City is unable or refuses to provide appropriate capacity to provide wastewater service to the Property such failure or refusal shall be considered an event of default under this Agreement 5.2 It is intended that wastewater service to the Property will be provide through the CCMA Wastewater Line and therefore neither Owner nor the City will be required to construct any offsite improvements to bring wastewater service to the Property. Notwithstanding the above, if Owner needs to construct any Additional Offsite Wastewater Improvements in order to obtain wastewater service to the Property (due to lack of capacity in or inability to tap into the CCMA Wastewater Line or for any other reason), Owner will have the right, but not the obligation, to construct such Additional Offsite Wastewater Improvements and receive reimbursement pursuant to the terms set forth in Section 2.31 above. Owner shall dilig ;ntly attempt to obtain all easements necessary for the construction of the Additional Offsite Wastewater Improvements, if needed, except that the City shall make available, at no cost to Owner, the right to use any rights of way or easements held by the City;provided, however, if Owner is unable to obtain any of the offsite easements necessary to construct the Additional Offsite Wastewater Improvements, or if existing easements and/or public right-of-way are not suitable for Owner to construct the Additional Offsite Wastewater Improvements, the City hereby agrees to initiate any necessary eminent domain proceedings to obtain such easements within thirty (30) days after receiving written request from Owner detailing its efforts to secure such easements and to diligently prosecute the same to completion so as to facilitate obtaining the easements in as prompt a manner as possible. Notwithstanding the above,the City shall not settle any eminent domain case or appeal without Owner's prior written approval in each instance, such approval not to be unreasonably withheld or delayed. Furthermore, subject to the reimbursement rights contained herein, Owner hereby agrees to pay for City's reasonable expenses associated with such eminent domain proceedings ("Eminent Domain Expenses"), including City staff time for oversight and project management; attorney's fees; survey fees and expenses; appraisal fees and expenses; and expert fees and expenses. Said Eminent Domain Expenses shall be paid to City within forty-five (45) days of Owner's receipt of an invoice for same. If Owner is required to expend any sums for such Eminent Domain Expenses, Owner shall be 7 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc allowed to increase the Maximum Reimbursement Amount by the amount of such Eminent Domain Expenses and such expenses shall thereafter become part of the Reimbursable Items. 6. City Performance Criteria 6.1 The City is obligated to pay to Owner an amount not to exceed the Maximum Reimbursement Amount from sources contemplated by this Agreement over a period not to exceed the Reimbursement Term, subject to the conditions precedent that Owner has timely and fully complied with all applicable terms and conditions contained in this Agreement. Further, City's obligation to pay Owner shall cease upon payment in full of the Maximum Reimbursement Amount, or the expiration of this Agreement after the Reimbursement Term, even if the Maximum Reimbursement Amount has not been paid, or termination of this Agreement by City as provided herein, whichever occurs first. 6.2 Ad Valorem Tax Increase Refund. City shall pay to Owner the applicable percentage, as shown below, of the Increased Ad Valorem Tax Revenues annually until (i) the Maximum Reimbursement Amount is paid to Owner from the sources contemplated by this Agreement, (ii) until the expiration of this Agreement after the Reimbursement Term, even if the Maximum Reimbursement Amount has not been paid or (iii) termination of this Agreement by City as provided herein, whichever occurs first, in accordance with the following schedule. Schedule 6.2: Percentages for Ad Valorem Tax Increase Refund Year(s) of City's Performance City's Time of Performance Term Requirements 1-2 City shall refund to Owner Yearly within sixty (60) days after 50% of the Increased Ad receipt of the Increased Ad Valorem Valorem Tax Revenues (i.e. Tax Revenues taxes resulting from increases of the Project's Assessed Taxable Value over and above the year 2007 Ad Valorem Tax Base Line Year value) 3 - 10 City shall refund to Owner Yearly within sixty (60) days after 70% of the Increased Ad receipt of the Increased Ad Valorem Valorem Tax Revenues (i.e. Tax Revenues taxes resulting from increases of the Project's Assessed Taxable Value over and above the year 2007 Ad Valorem Tax Base Line Year value) 11 - End of Term City shall refund to Owner Yearly within sixty (60) days after 8 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 50% of the Increased Ad receipt of the Increased Ad Valorem Valorem Tax Revenues (i.e. Tax Revenues taxes resulting from increases of the Project's Assessed Taxable Value over and above the year 2007 Ad Valorem Tax Base Line Year value) 6.3 Sales Tax Refund City shall pay to Owner the applicable percentage, as shown below, of the Actual Project Sales Tax within sixty (60) days of receipt by City until (a) the Maximum Reimbursement Amount is paid to Owner from the sources contemplated by this Agreement, (b) until the expiration of this Agreement after the Reimbursement Term, even if the Maximum Reimbursement Amount has not been paid or (c) the termination of this Agreement by City as provided herein, whichever occurs first, in accordance with the following schedule. City shall be required to issue only one (1) sales tax refund check er quarter(based on the City's fiscal ear)to Owner or Owner's designee. Schedule 6.3: Percentages for Sales Tax Refund Year(s)of City's Performance Requirements City's Time of Performance Term 1 - 2 Fifty percent (50%) of Actual Quarterly within sixty (60) days afte Project Sales Tax eceipt from the Texas Comptroller o ctual Sales Tax Collected by the City 3 - 10 Seventy percent (70%) of Actual uarterly within sixty (60) days afte Project Sales Tax eceipt from the Texas Comptroller o Actual Sales Tax Collected by the City 11 - End of Fifty percent (50%) of Actual Quarterly within sixty (60) days after Term Project Sales Tax eceipt from the Texas Comptroller o Actual Sales Tax Collected by the ity 6.4 Sales Tax Disclosure. Owner covenants and agrees to include as a condition or covenant filed as a deed restriction, language which requires Owner, its successors and assigns to sign, or cause to be signed, any documentation necessary to authorize the State Comptroller's Office to release and disclose to the City any and all sales tax information relating to any businesses generating sales and use tax within the Property, including, as necessary a form in materially the same form as that attached hereto as Exhibit "E"("Sales Tax Disclosure"). 9 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doe 6.5 Hotel Tax Refund. Upon construction of an attraction that satisfies the Hotel Requirements ("Attraction"), the City shall pay to Owner the applicable percentage, as shown below, of the Hotel Tax as collected by the Texas Comptroller to pay the Hard Costs and Soft Costs associated with the Attraction ("Attraction Costs"). The City acknowledges that the Attraction Costs are in addition to and not subject to the Maximum Reimbursement Amount. The City shall pay to Owner the applicable percentage, as shown below, of the Hotel Tax as collected by the Texas Comptroller within sixty (60) days of receipt by City until (a) the Attraction Costs are paid to Owner, (b) until the expiration of this Agreement after the Reimbursement Term, even if the Attraction Costs have not been paid or (c) the termination of this Agreement by City as provided herein, whichever occurs first, in accordance with the following schedule. City shall be required to issue only one (1) hotel tax refund check per quarter (based on the City's fiscal year)to Owner or Owner's designee. Schedule 6.5: Percentages for Hotel Tax Refund Year(s) of City's Performance Requirements City's Time of Performance Term 1 - 2 Fifty percent(50%) of the Hotel Tax Quarterly within sixty (60) days aft eceipt of Aggregate Hotel from th -Texas Comptroller 3 - 10 Seventy percent (70%) of the Hotel Quarterly within sixty (60) days after Tax receipt of Aggregate Hotel Tax from he Texas Comptroller 11 - End Fifty percent (50%) of the Hotel Tax Quarterly within sixty (60) days afte Reimbursement eceipt of Aggregate Hotel Tax from of Term he Texas Comptroller The City agrees that it shall impose a hotel tax within twelve (12) months from the date Developer delivers notice to the City evidencing that Developer has entered into a franchise agreement with a specific hotel chain to be located within the Project. 6.6 Audit. Owner shall, upon forty-five (45) days prior written notice to City and during normal business hours, but in any event not more than two (2) times per calendar year, have the right to audit and inspect City's records and books and all other relevant records related to each of the economic development considerations and incentives and performance requirements, as stated in this Agreement, but the confidentiality of such records and information shall be maintained by City unless disclosure of such records and information shall be required by a court order, a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney General. F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 7. Owner's Covenants, Warranties, Obligations and Duties 7.1 Owner makes the following covenants and warranties to City, and agrees to timely and fully perform the following obligations and duties. Any false or substantially misleading statement contained herein or failure to timely and fully perform as required in this Agreement shall be an Act of Default by Owner. Failure to comply with any one covenant or warranty shall constitute an Act of Default by Owner. 7.1.1 Owner is authorized to do business and is in good standing in the State of Texas and shall remain in good standing in the State of Texas during the Term of this Agreement. 7.1.2 The execution of this Agreement has been duly authorized by Owner's general partner, and the individual signing this Agreement is the manager of the general partner, empowered to execute such Agreement and bind the partnership, said authorization, signing and binding effect is not in contravention of any law, rule or regulation, or of the provisions of Owner's partnership agreement, or by-laws, or of any agreement or instrument to which Owner is a party or by which it may be bound, such authority to be evidenced by a partnership resolution, attached hereto at the time of execution. 7.1.3 No litigation or governmental proceeding is pending or, to the knowledge of Owner or Owner's officers, threatened against or affecting Owner that may result in any material adverse change in Owner's business, properties or operation. No consent, approval or authorization of or registration or declaration within any governmental authority is required in connection with the execution of this Agreement or the transactions contemplated hereby. 7.1.4 There are no bankruptcy proceedings or other proceedings currently pending or contemplated, and Owner has not been informed of any potential involuntary bankruptcy proceedings. 7.1.5 To its current, actual knowledge, Owner has acquired and maintained all necessary rights, licenses, permits and authority to carry on its business in Cibolo, Texas, and will continue to use its best efforts to maintain all necessary rights, licenses,permits and authority. 7.1.6 The funds herein granted shall be utilized solely for the purpose of constructing the Reimbursable Items shown on Exhibit"C". 7.1.7 Owner shall timely and fully comply with all of the terms and conditions of this Agreement. 11 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 7.1.8 Insurance. Throughout the term of this Agreement, Owner shall, at its expense, maintain in full force and effect, insurance in the types and amounts required by Code. 7.1.9 Employment of Undocumented Workers. During the term of this Agreement, the Owner agrees not to knowingly employ any undocumented workers and if convicted of a violation under 8 U.S.C. Section 1324a (f), Owner shall repay the amount of the reimbursements received by the Owner as of the date of such violation within 120 business days after the date the Owner is notified by the County of such violation, plus interest at the rate periodically announced by the Wall Street Journal as the prime or base commercial lending rate, or if the Wall Street Journal shall ever cease to exist or cease to announce a prime or base lending rate, then at the annual rate of interest from time to time announced by Citibank, N.A. (or by any other New York money center bank selected by the City) as its prime or base commercial lending rate, from the date of such notice until paid. 7A. Phasing of Project/CEDC Participation 7A.1 The Property may be developed in phases; provided, however, within thirty-six (36) months after the Effective Date, Developer agrees that either (i) 50,000 square feet of Gross Leaseable Space or(ii) improvements with a taxable value of at least Ten Million Dollars ($10,000,000.00) shall have been constructed within the Project (the "Initial Completion Items"). Owner acknowledges that Owner will not receive any Chapter 380 Payments until such time as the Initial Completion Items have been completed. 7A.2 The City hereby acknowledges that pursuant to the terms of that certain Performance Agreement between Owner and the CEDC ("Performance Agreement"), the CEDC is participating in a portion of the cost of the Project. 8. Suspension of Payments 8.1 City, under the following circumstances, and at its sole discretion, may suspend its obligations under this Agreement and all future payment obligations shall automatically cease: 8.1.1 In the Event of Bankruptcy or Insolvency on the part of Owner 8.1.2 Any Breach of this Agreement or Act of Default if not cured as provided for in Section 10.1. 9. 12 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FNAL).doc Reporting and Monitoring 9.1 Owner agrees to the following reporting and monitoring provisions, and failure to fully and timely comply with any one requirement shall constitute an Act of Default: 9.1.1 City shall, upon forty-five (45) days' prior written notice to Owner and during normal business hours, but in any event not more than two (2) times per calendar year, have the right to audit and inspect Owner's records and books and all other relevant records related to each of the economic development considerations and incentives and performance requirements, as stated in this Agreement, but the confidentiality of such records and information shall be maintained by City unless disclosure of such records and information shall be required by a court order, a lawfully issued subpoena, or at the direction of the Office of the Texas Attorney General. 10. Owner's Liability 10.1 Should Owner fail to timely or substantially comply with any one or more of the requirements, obligations, duties, terms, conditions or warranties of this Agreement such failure shall be an Act of Default by Owner and, if not cured and corrected within ninety (90) days after written notice to do so, City as its sole and exclusive remedies, may cease making any further economic payments pursuant to this Agreement, and shall have the right to draw down on any fiscal posted by Owner for any of the applicable Reimbursable Items through any agreement with the City (e.g. plat, site development permit, etc.). Owner shall not be liable to City for any alleged consequential damages. Notwithstanding the above, if such Act of Default is such a matter that cannot be cured by reasonably diligent efforts within ninety (90) days, then such occurrence shall not be an Act of Default so long as Owner promptly initiates and diligently and continuously attempts to cure the same, even if the same is not cured within said ninety (90) day period. 10.2 In the event of unforeseeable third party delays or Force Majeure and upon a reasonable showing by Owner that it has immediately and in good faith commenced and is diligently and continuously pursuing the correction, removal or abatement of such delays by using its diligent, good faith efforts, City may consent to and excuse any such delays, which consent and excuse shall not be unreasonably withheld. 10.3 Any delay for any amount of time by City in providing notice of Default to Owner shall in no event be deemed or constitute a waiver of such Default by City of any of its rights and remedies available in law or in equity. 13 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 10.4 Any waiver granted by City to Owner of an Act of Default shall not be deemed or constitute a waiver of any other existing or future Act of Default by Owner or of a subsequent Act of Default of the same act or event by Owner. 10.5 The City may at its option, offset any amounts due and payble under this Agreement against any debt (including taxes) lawfully due and owing to the City from the Owner, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise, and regardless of whethter of not the debt has been reduced to judgment by a court. 10.6 Should Owner be in default of this Agreement, as defined within this Agreement, City shall have all remedies as recited under Section 10.1. 11. City's Liability Limitations Should the City fail to timely or substantially comply with any one or more of the requirements, obligations, duties, terms, conditions or warranties of this Agreement, such failures shall be an Act of Default by City and City and shall have ninety (90) days to cure and remove the Default upon receipt of written notice to do so from Owner. Owner specifically agrees that City shall only be liable to Owner for the amount of the money grants it is required to convey to Owner, attorneys fees and costs of court and shall not be liable to Owner for any alleged or actual consequential damages. It is further specifically agreed that City shall only be required to pay the amounts solely out of its portion of the Actual Project Sales Tax, and the Increased Ad Valorem Tax Revenues on this Project. 12. Land Use 12.1 The Parties acknowledge that the Project envisions a development over a significant area that will be developed in phases, as more specifically described in Section 7A. 12.2 Owner agrees to comply with the Code, as amended or supplemented by this Agreement and the PD. 12.3 It shall be the duty and responsibility of the Owner to ensure that the Property and the buildings and improvements located within the Project are consistently maintained in good order and condition and state of repair in accordance with comparable mixed-use projects located in Central Texas, including, but not limited to, sweeping and removal of trash, litter and refuse, painting and striping of parking areas, repair and replacement of paving as necessary, maintenance of landscaped areas, community gathering areas, detention ponds, removal of accumulation of ice and snow from driveways and parking areas, and maintenance and repair of lighting fixtures and signs. 14 F:IGALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(F1NAL).doc The failure or refusal of Owner to fulfill or perform any of the obligations contained in this Section 12.3 shall constitute an event of default under this Agreement if such failure or refusal shall continue without correction for a period of thirty (30) days from and after written notice from City to Owner; provided, however if due to the nature of said obligation, the same could not be reasonably fulfilled or performed within said thirty-day period exercising due diligence, an event of default shall not be deemed to have occurred if Owner has been continuously, diligently pursuing the fulfillment or performance of the obligation and shall thereafter continuously and diligently proceed therewith until completion. With respect to any event of default under this Section 12.3, the City shall have, as its sole and exclusive remedy, the right, but not the obligation, after such notice and cure period to cure such default by the payment of money or the performance of some other action for the account of and at the expense of the defaulting Owner. To effectuate any such cure, City shall have the right to enter upon the Property (but not into any building) to perform any necessary work or furnish any necessary materials or services to cure the default of the defaulting Owner. In the event the City shall cure a default, the defaulting Owner shall reimburse City for all reasonable and out-of-pocket costs and expenses incurred in connection with the uncured condition and such curative action within thirty (30) days of receipt of demand, together with reasonable documentation supporting the costs incurred and/or expenditures made. 13. Responsibility Assignment 13.1 The provisions contained in this Agreement shall be the individual requirement of or benefit to (as the case may be) Owner and its Designated Successors and Assigns. Notwithstanding the above, if Owner sells only a portion of the Property to a third party (e.g. sale to an anchor tenant, pad user, etc. [herein referred to as a"Buyer"), the Buyer shall only be obligated to comply with the terms and conditions set forth in Section 4 herein and will not be deemed to have assumed the obligations (e.g. obligation to construct the Reimbursable Items) or have been granted the rights (e.g. right to receive Chapter 380 Payments) of the "Owner"under this Agreement. 13.2 If Owner sells all or substantially all of the Property to a Designated Successor or Assign, such Designated Successor or Assign shall assume all of the rights and obligations of "Owner" under this Agreement; provided however, Owner may expressly retain the right to receive Chapter 380 Payments. Upon such assignment by the Owner, Owner shall no longer be liable for the assigned rights and obligations and the City shall look solely to the Designated Successor or Assign for performance 13.3 To aid in determining the applicability of Sections 13.1 and 13.2 above, Owner shall designate in the deed (or other similar document of record) whether the purchasing entity is a Buyer or a Designated Successor or Assign. If no such designation is made, the purchasing entity shall be deemed a"Buyer". 15 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc 14. Miscellaneous Provisions 14.1 Changes in Law. If, during the Term of this Agreement, State law applicable to municipal sales taxes, ad valorem taxes or hotel taxes changes and, as a result, the Chapter 380 Payments differ from the amount which would have been paid to Owner under the laws in effect as of the Effective Date, then the City, in its sole discretion, may adjust the Chapter 380 Payments utilizing whatever discretionary taxes and revenues are legally available to the City to be allocated to the Chapter 380 Payments. The foregoing does not require the City to use funds from other sources and/or sources that are not within the City's discretion to allocate to the Project in order to achieve the same economic benefits to both Parties, which would have resulted if the law had not changed. 14.2 Complete Agreement/Amendment. This Agreement represents a complete agreement of the parties and supersedes all prior written and oral matters related to this Agreement. This Agreement may be canceled, changed, modified or amended, in whole or in part, only by the written and recorded agreement by the City and the then current owner of the Property. In the event that the Property shall be owned by more than one owner, then this Agreement may be canceled, changed, modified or amended, in whole or in part, only by the written and recorded agreement by the City and the owners of sixty percent (60%) of the land area of the Property; provided, however, that so long as Owner or its Designated Successors and Assigns have at least a ten percent (10%) ownership interest in the Property, it shall be required to join in any cancellation, change, amendment or modification of this Agreement. 14.3 Mutual Assistance/Good Faith. The City and the Owner each agree to act in good faith and to do all things reasonably necessary or appropriate to carry out the terms and provisions of this Agreement, and to aid and assist the other in carrying out such terms and provisions in order to put the other in the same condition contemplated by this Agreement, regardless of any changes in public policy, the law or taxes or assessments attributable to the Property. 14.4 Permitting. The Parties agree to cooperate with one another to facilitate the expeditious processing of permits, including zoning application(s), subdivision applications, development application(s) and building permit applications required for the Proj ect. 14.5 Representations and Warranties. The Parties represent and warrant to one another that the Program and this Agreement are within their authority, and that they are duly authorized and empowered to enter into this Agreement, unless otherwise ordered by a court of competent jurisdiction. 14.6 Release and Indemnification. THE CITY SHALL NOT BE LIABLE FOR ANY LOSS, DAMAGE, OR INJURY OF ANY KIND OR CHARACTER TO 16 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc ANY PERSON OR PROPERTY ARISING FROM THE ACTS OR OMMISSIONS OF THE OWNER PURSUANT TO THIS AGREEMENT. THE OWNER HEREBY WAIVES ALL CLAIMS AGAINST CITY, ITS OFFICERS, AGENTS AND EMPLOYEES (COLLECTIVELY REFERRED TO IN THIS SECTION AS "CITY" ) FOR DAMAGE TO ANY PROPERTY OR INJURY TO, OR DEATH OF, ANY PERSON ARISING AT ANY TIME AND FROM ANY CAUSE OTHER THAN THE SOLE NEGLIGENCE OR WILLFUL MISCONDUCT OF CITY. THE OWNER DOES HEREBY INDEMNIFY AND SAVE HARMLESS THE CITY FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, ATTORNEY'S FEES AND COSTS OF INVESTIGATION) AND ACTIONS OF ANY KIND BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY ARISING FROM THE OWNER'S BREACH OF ANY OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, OR BY REASON OF ANY ACT OR OMISSION ON THE PART OF THE OWNER, ITS OFFICERS, DIRECTORS, SERVANTS, AGENTS, EMPLOYEES, REPRESENTATIVES, SUBCONTRACTORS, LICENSEES, SUCCESSORS OR PERMITTED ASSIGNS IN THE PERFORMANCE OF THIS AGREEMENT (EXCEPT WHEN SUCH LIABILITY, CLAIMS, SUITS, COSTS, INJURIES, DEATHS OR DAMAGES ARISE FROM OR ARE ATTRIBUTED TO THE SOLE NEGLIGENCE OF THE CITY). IN THE EVENT OF JOINT OR CONCURRENT NEGLIGENCE OF BOTH THE CITY AND OWNER, THE RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE CITY AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. IF ANY ACTION OR PROCEEDING SHALL BE BROUGHT BY OR AGAINST CITY IN CONNECTION WITH ANY SUCH LIABILITY OR CLAIM, THE OWNER SHALL BE REQUIRED, ON NOTICE FROM CITY, TO DEFEND SUCH ACTION OR PROCEEDINGS AT THE OWNER'S EXPENSE, BY OR THROUGH ATTORNEY'S REASONABLY SATISFACTORY TO THE CITY. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. 14.7 Force Majeure. All obligations of Owner and City shall be subject to events of "force majeure" which shall mean any contingency or cause beyond the reasonable control of a party, as applicable, including, without limitations, acts of God or the public enemy, war, riot, civil commotion, insurrection, adverse weather, government or de facto governmental action or inaction (unless caused by negligence or omissions of such party), fires, explosions, floods, strikes, slowdowns or work stoppages, shortage of materials and labor. 14.8 Attorney's Fees. Upon execution of this Agreement by Owner and City and City Council's approval of same, Owner agrees to pay City's reasonable attorney's fees associated with the negotiaton of this Agreement. Said fees shall be paid to City 17 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc within forty-five (45) days of Owner's receipt of an invoice for same and shall be part of the Reimburseable Items. 14.9 Binding Effect. This Agreement will be binding on and inure to the benefit of the Parties and their respective successors and assigns. 14.10 Termination. If the Owner elects not to proceed with the development of the Project as contemplated by this Agreement, the Owner will notify the city in writing, and this Agreement and the obligations of all Parties will be deemed terminated and of no further force or effect as of the date of such notice, except those that expressly survive the termination hereof, if any. Notwithstanding the above, Owner agrees to reimburse City for all professional fees expended in the negotiation and preparation of this Agreement. 14.11 Notice. Any notice or other communication ("Notice") given under this Agrement must be in writing, and may be given: (i) by depositing the Notice in the United States Mail, postage paid, certified, and addressed to the Party to be notified with return receipt requested; (ii) by personal delivery of the Notice to the Party, or an agent of the Party; or (iii) by confirmed facsimile, provided that a copy of the Notice is also given in one of the manners specified in (i) or (ii). Notice deposited in the mail in the manner specified will be effective two (2) business days after deposit. Notice given in any other manner will be effective only if and when received by the Party to be notified. For the purposes of Notice, the addresses of the Parties will, until changed as provided below, be as follows: Owner: Laredo 1-35 North, Ltd. Attn: Marcus iMoreno 16818 Tuscany Stone, Suite 100 San Antonio, Texas 78258 Ph: (210)497-3385 Fax: (210)495-2587 With a copy to: Drenner& Golden Stuart Wolff, LLP Attn: Talley J. Williams 301 Congress Ave., Suite 1200 Austin, Texas 78701 Ph: (512) 404-2234 Fax: (512)404-2244 City: City of Cibolo Attn: City Manager 200 South Main Street Cibolo, Texas 78108 Ph: (210) 658-9900 Fax: (210) 658-1687 18 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreemcid v 15(FINAL).doc With a copy to: Charles Zech c/o Denton,Navarro, Rocha& Bernal, P.C. Attn: Charles E. Zech 2517 N. Main Avenue San Antonio, Texas 78212 Ph: (210) 227-3243 Fax: (210) 225-4481 All Parties may designate a different address at any time by giving Notice to the other Parties. 14.12 Interpretation. Each of the Parties have been represented by counsel of their choosing in the negotiation and preparation of this Agreement. In the event of any dispute regarding the interpretation of this Agreement, this Agreement will be interpreted fairly and reasonably and neither more strongly for or against any Party based on draftsmanship. 14.13 Relationship of the Parties. This Agreement will not be construed as establishing a partnership or joint venture,joint enterprise, express or implied agency, or employer-employee relationship between the parties. Neither the City nor their past, present or future officers, elected officials, employees or agents, assume any responsibility or liability to any third party in connection with the development of the Project or the design, construction or operation of any portion of the Project. 14.14 Applicable Law. This Agreement is made, and will be construed and interpreted, under the laws of the State of Texas and venue will lie in Guadalupe County, Texas. No Party to this Agreement waives or relinquishes any immunity or defense on behalf of itself, its officers, employees, agents or representatives as a result of the approval or execution of this Agreement. 14.15 Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws, it is the intention of the Parties that the remainder of this Agreement not be affected and it is also the intention of the Parties that, in lieu of each provision that is found to be illegal, invalid or unenforceable, a provision be added to this Agreement which is legal, valid or enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 14.16 Paragraph Headings. The paragraph headings contained in this Agreement are for convenience only and will in no way enlarge or limit the scope or meaning of the paragraphs. 14.17 No Third Party Beneficiaries. This Agreement is not intended to nor shall it be interpreted to confer any rights, privileges or causes of action upon any third party. 19 F:\GALO\FINAL 380&PERFORMANCE AGMTS\.380 Agreement v 15(FINAL).doc 14.18 Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which will be deemed an original, but all of which will constitute one and the same instrument. A facsimile signature will be deemed to be an original signature for all purposes. 14.19 Exhibits. The following exhibits are attached to and incorporated into this Agreement for all purposes. Exhibit"A": Property Description Exhibit `B": Architectural Upgrades Exhibit"C": Reimbursable Items Exhibit"D": Public Improvements Exhibit"D-1":CCMA Wastewater Line Exhibit`B": Agreement for Disclosure of Sales Tax Information [Signature Pages to Follow] After Recording, Return to: 16818 Tuscany Stone, Suite 100 San Antonio, Texas 78258 20 F:\GALO\FINAL 380&PERFORMANCE AGMTS\380 Agreement v 15(FINAL).doc EXECUTED to be effective as of the day of , 2008. OWNER: LAREDO I-35 NORTH, LTD., a Texas limited partnership By: ABG Enterprises, Ltd., a Texas limited partnership, its general partner By: Galo, Inc. a Texas corpora on, its general p By: 5&-N04 Name: Title: J1�5' Q Vl Date: _ g CITY: THE CITY OF CIBOLO, TEXAS, a Home-Rule Municipal Corporation By: Name: Title: Date: Approved As To Form and Content: ity Attorney Exhibit E AGREEMENT FOR DISCLOSURE OF CONFIDENTIAL TAX INFORMATION This agreement is entered into between the City of Cibolo, Texas (hereafter the "City") and (business name) (hereinafter the "taxpayer") for the purposes indicated herein. I, (title), and the duly authorized agent of (_business name ) , a vendor doing business at Name and Address of Facility do hereby stipulate and agree as follows: I hereby authorize the Texas Comptroller's Office to release and disclose any and all Sales and Use tax information relating to the operation of the above referenced taxpayer's business location to the City. I understand and agree that this release will be made by the Comptroller's Office to the City on an ongoing monthly basis beginning on the date this Agreement is executed. This Agreement waives any and all rights with respect to the parties regarding the confidentiality of tax information under Sections 111.006, 151.027, Tax Code, or other state law. The City agrees that it will use the tax information disclosed by the Comptroller pursuant to this Agreement solely and exclusively for the purposes of calculating payments to be made pursuant to a Ch. 380 Economic Development Agreement between the City and Laredo I-35 North, Ltd. dated effective , 2008. This Agreement is entered into in or with regard to property located in Cibolo, Guadalupe County, Texas and Texas law will apply to its interpretation and enforcement. SIGNED AND AGREED TO on this the day of , 2008. name name title title On Behalf of the "City" On behalf of the "Taxpayer" Texas Taxpayer Identification No. P Bury ___Partners E N G I N E E R I N G S O L U T I O N S 80.480 ACRES FN NO. 50672-02-1 (3, 505, 722 SQ. FT. ) DECEMBER 18, 2006 50672-02ti.DWG JOB NO. 50672-02 .92 FIELD NOTE DESCRIPTION OF A 80.480 ACRE TRACT OF LAND SITUATED IN THE JACOB DE CORDOVA SURVEY NO, 514, ABSTRACT NO. 117, AND JOHN SALADIN SURVEY NO. 404, ABSTRACT NO. 299, CITY OF CIBOLO, GUADALUPE COUNTY, TEXAS, AND BEING COMPRISED OF THE REMAINDER OF THAT CERTAIN 78. 79 ACRE TRACT OF LAND CONVEYED TO IRC JOINT VENTURE 35 NORTH, AND RECORDED IN VOLUME 654 , PAGE 715, AND THAT CERTAIN SAME 35. 906 ACRE TRACT OF LAND CONVEYED TO WILLIAM DEAN III (TRACT2) RECORDED IN VOLUME 654, PAGE 770, BOTH DOCUMENTS BEING RECORDED IN DEED RECORDS OF GUADALUPE COUNTY, TEXAS; SAID 80.480 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING, AT A FOUND TEXAS DEPARTMENT OF TRANSPORTATION CONCRETE MONUMENT MARKING THE SOUTHERLY END OF A CUT BACK CORNER AT THE INTERSECTION OF THE SOUTHWESTERLY RIGHT OF WAY LINE OF WIEDERSTEIN ROAD WITH THE SOUTHEASTERLY RIGHT OF WAY LINE OF INTERSTATE HIGHWAY 35 (VARIABLE ROW) ; THENCE, N 84056' 14 W, ALONG THE SAID CUT BACK LINE, A DISTANCE OF 61. 37 FEET TO A FOUND CONCRETE MONUMENT ON THE SOUTHWESTERLY LINE OF WIEDERSTEIN ROAD, MARKING THE MOST NORTH-NORTHEASTERLY CORNER OF HEREIN DESCRIBED TRACT; THENCE, ALONG THE SOUTHWESTERLY LINE OF WIEDERSTEIN ROAD, THE FOLLOWING COURSES; S 31011` 24" E, A DISTANCE OF 99.94 FEET TO A FOUND TEXAS DEPARTMENT OF TRANSPORTATION CONCRETE MONUMENT; S 57002' 23"E, A DISTANCE OF 56 .01 FEET TO A FOUND TEXAS DEPARTMENT OF TRANSPORTATION CONCRETE MONUMENT; S 31012' 45" E, A DISTANCE OF 966.23 FEET TO A FOUND % INCH IRON ROD, MARKING THE EASTERLY CORNER OF HEREIN DESCRIBED TRACT, AND THE NORTHERLY CORNER OF LANTANA SUBDIVISION UNIT 3 AS RECORDED IN BOOK 6, PAGE 691 PLAT RECORDS OF GUADALUPE COUNTY, TEXAS; THENCE, ALONG THE WESTERLY LINE OF SAID LANTANA SUBDIVISION UNIT 3, AND THE WESTERLY LINE OF LANTANA SUBDIVISION UNIT 2 AS RECORDED IN BOOK 6, PAGE 640 PLAT RECORDS OF GUADALUPE COUNTY, TEXAS, THE FOLLOWING COURSES; S 06°40' 54" W, A DISTANCE OF 403 .48 FEET TO A FOUND % INCH IRON ROD, FOR A CORNER OF HEREIN DESCRIBED TRACT; S 08042' 24"W, A DISTANCE OF 376. 84 FEET TO A SET % INCH IRON ROD WITH BPI CAP, FOR A CORNER OF HEREIN DESCRIBED TRACT; S 35008' 30" W, A DISTANCE OF 397 . 72 FEET TO A FOUND 'fz INCH IRON ROD, FOR A CORNER OF HEREIN DESCRIBED TRACT; S 43049' 39" W, A DISTANCE OF 397. 63 FEET TO A FOUND INCH IRON ROD, ON THE NORTHEASTERLY LINE OF THAT CERTAIN 160 ACRE TRACT CONVEYED TO EVELYN KRAMME RIPPS AS RECORDED IN VOLUME 261, PAGE 168 DEED RECORDS OF GUADALUPE COUNTY, TEXAS, FOR THE WESTERLY CORNER OF SAID LANTANA SUBDIVISION UNIT 2; THENCE, N 30001159 W, ALONG THE NORTHEASTERLY LINE OF SAID 160 ACRE TRACT, A DISTANCE OF 21. 71 FEET TO A FOUND % INCH IRON ROD FOR THE NORTHERLY CORNER OF SAID 160 ACRES, AND THE EASTERLY CORNER OF SAID ROBERT JOHN DEAN TRACT; THENCE, S 59023' 51 W, ALONG THE COMMON LINE OF SAID 160 ACRE TRACT AND SAID ROBERT JOHN DEAN TRACT, A DISTANCE OF 982 . 99 FEET TO A FOUND % INCH IRON ROD FOR THE SOUTHERLY CORNER OF SAID ROBERT JOHN DEAN TRACT.', SAME BEING THE EASTERLY CORNER OF THAT CERTAIN 35. 906 ACRE TRACT CONVEYED TO R.D.L. PROPERTIES AS RECORDED IN VOLUME 1258, PAGE 345 OFFICIAL RECORDS OF GUADALUPE COUNTY, TEXAS; THENCE, N 30036' 23 W, ALONG THE COMMON LINE OF SAID 35 . 906 ACRE TRACT AND SAID ROBERT JOHN DEAN TRACT, A DISTANCE OF 1433 . 06 FEET TO A FOUND CONCRETE MONUMENT ON THE SOUTHEASTERLY RIGHT OF WAY LINE OF INTERSTATE HIGHWAY 35 (VARIABLE ROW) , FOR THE WESTERLY CORNER OF SAID ROBERT JOHN DEAN TRACT; THENCE, ALONG THE SOUTHEASTERLY RIGHT OF WAY LINE OF INTERSTATE HIGHWAY 35 (VARIABLE ROW) , THE FOLLOWING COURSES; N 41046'45" E, A DISTANCE OF 92 . 93 FEET TO A CONCRETE MONUMENT FOR A CORNER OF HEREIN DESCRIBED TRACT; N 41045'24" E, A DISTANCE OF 508.44 FEET TO A FOUND CONCRETE MONUMENT FOR A CORNER OF HEREIN DESCRIBED TRACT; N 44019' 09 E, A DISTANCE OF 400.48 FEET TO A FOUND CONCRETE MONUMENT FOR A CORNER OF HEREIN DESCRIBED TRACT; N 46°40' 46 E, A DISTANCE OF 23 .56 FEET TO A FOUND CONCRETE MONUMENT FOR A CORNER OF HEREIN DESCRIBED TRACT; N 46030' 19 E, A DISTANCE OF 862. 08 FEET TO A FOUND CONCRETE MONUMENT FOR A CORNER OF HEREIN DESCRIBED TRACT; N 41046'26 E, A DISTANCE OF 317.33 FEET TO THE POINT OF BEGINNING, AND CONTAINING 80.480 ACRES OF LAND, MORE OR LESS. I, JAMES W. RUSSELL, A REGISTERED PROFESSIONAL LAND SURVEYOR, DO HEREBY CERTIFY THAT THE PROPERTY DESCRIBED HEREIN WAS DETERMINED BY A SURVEY MADE ON THE GROUND UNDER MY DIRECTION AND SUPERVISION. BURY & PART 2`EEAS*-W.�=ELL l� rz1/8 0 PARTNERS, INC. �� ENGINEERS AND SURVEYORS 922 ISOM ROAD, SUITE #100 R.P.L.S #4230 SAN ANTONIO, TEXAS 78216 STATE OF TEXAS ,LAMES ."RUSS L. .' ............. 230 , a Architectural Unetrades • Architectural Improvement Allowance ($10 ppr square foot for approximately 547,000 SF of buildable space) o Allowance will be used to upgrade buildings with some or all of the following architectural enhancements: ■ Awnings and shading devices at the facades ■ Natural stone,and/or brick accents to add visual interest ■ Improved massing of buildings and storefronts to create depth and improve the pedestrian experience ■ Varied paving materials and treatments at the walkways in front of the shop space ■ Benches and trash receptacles,that are architecturally interesting and pay homage to the"Old Spanish Trail'theme of Cibolo Crossing at Old Spanish Trail • Decorative Community Lighting o Decorative Street Lighting which adds to the sense of place to be created at Cibolo Town Center. Ripps- Kruessler extension shall be comprised of the following decorative lights ■ 4,330 LF of street, 1 light every 50' both sides of street @ $2,000/fixture o Bollard Lighting at areas of special interest and as a safety feature within the neighborhood retail o Recessed and Up Lighting/Flood lighting for decorative purposes • Lighting that enhances the architectural character • Lighting that enhances the Native Landscaping • Placemaking Dedications—Community Gathering Space o At least 2 acres of community gathering space will be included in the Project to promote the history of Cibolo o Space will utilize educational elements, placards,and architectural hard scape to create an inviting environment where visitors can relax in the shade and learn about the history of Cibolo and the Old Spanish Trail o This space may be utilized to promote the "Gateway to Cibolo" concept and include advertising and community interest boards to promote local events o This space may also be used to host community events • Repetitive Landscape Elements o Use of similar masonry,wrought iron,or themed hardscape elements(themed logos, and iconography) which reinforce the theme of the "Old Spanish Trail'will be repeated throughout the site. o Stone benches, raised landscape planters, which create spaces for the community to gather o Massing of landscape elements shall be placed at pedestrian nodes and areas of community interest o Use of plant material in repetition may be utilized to achieve the "sense of place" o Use of varied paving materials including but not limited to: ■ Stamped/stained/salted concrete ■ Stamped/colored asphalt ■ Stone or simulated stone pavers • Landscape and Open Space Buffers o Medians on roadways and select parking medians will be landscaped to include: ■ earthen berms ■ large rocks,and/or rock beds ■ native and drought tolerant plantings ■ large species trees o Earthen berms shall be utilized to: ■ Minimize traffic impact ■ Provide sound buffers ■ Provide visual interest • Superior Native Landscaping o A native planting palette has been provided the PUD o A plant and tree list has been designed to integrate drought tolerant and native plants within the site to provide a regional and themed experience • Community Monumentation o Two project identity signs are permitted on the site that ■ Serve as distinctive symbols for the project and as a gateway for Cibolo ■ Will be ground mounted but may include pylon extensions to achieve up to 50' in height provided the extensions include architectural enhancements ■ Have an iconic quality that sets forth an identifiable brand for the project o Signage described in the PUD ■ Will be consistent with the architectural character and themeing of the project ■ Include references to the theme of the Old Spanish Trail ■ Will coordinate with: • The design of the buildings • The size and scale of the buildings • Any master sign program approved by the City o Pedestrian sign kiosks may be located in the project to inform visitors of Cibolo's history and special events • Wayfinding Mechanisms o Themed signage in the site will create links: ■ To downtown Cibolo to promote tourism ■ Within the site for better circulation ■ Within the site to promote the Community Gathering space o Sidewalks: ■ Shall include brick and/or stone paving, scored/stained concrete,and/or integrally colored concrete ■ Located along public streets shall include street trees Cibolo Crossing �HMIT at Old Spanish Trail Reimbursable Items Total Funded Public Improvements Public Roadways Onsite ROW Dedication $ 1,225,000 Offsite Widen Old Wiederstein $ 144,252 Wiederstein ROW dedication $ 99,490 1-35 Frontage Rd. Decel Lanes $ 450,000 Signalization $ 312,000 Architectural Upgrades Community Monumentation/Downtown Draw Architectural Improvement Allowance $ 5,475,000 Decorative Community Lighting $ 346,400 Placemaking Dedications-Open Space $ 980,100 Repetitive Landscape Elements $ 1,393,746 Landscape and Open Space Buffers $ 1,020,000 Superior Native Landscaping $ 1,500,000 Community Monumentation $ 725,000 Wayfinding Mechanisms $ 1,549,781 Total Expenses* $ 15,220,769 *Maximum Reimbursement amount may be increased pursuant to express items set forth in the Chapter 380 Agreement V V O rza Y ! 0 o - m i I 1 3 It, JI L E fir', 5 = b Bury--Partners ROADWAY IMPROVEMENTS ENGINEERING SOLUTIONS 022 I..Rod,Bulk 100 =1 S."mom,Ts M16 CIBOLO CROSSING AT I^ TeL(!10)520-0000 Eu(21CAM-05a OLD SPANISH TRAIL ewwarlous-BA,ImCCopTr1Ee12005 CIBOLO,TX DATE: Jon-21-2008 SCALE: i--300' DRANK BY: KB PRO.ECT No.: 672-02.00 j W <, 4 to W Q W LU co � U Z1- 4 W Z<0 ZCL 0 V W — p W W m F=- U -6160 I z • m �'•� 7 EXISTING 8'CCMA WASTEWATER LINE---\\ ♦`♦t o goo zoo eco aoo =zoo' ■/■■/■■■■■��■■//■f■■■fMEff■�.ffff�tiff■ff r EXHIBIT Q - 0