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City Council Meeting Agenda Packet 8-16-20221 CITY OF HUNTSVILLE, TEXAS Andy Brauninger, Mayor Bert Lyle, Position 1 At-Large Dee Howard Mullins, Position 2 At-Large Vicki McKenzie, Position 3 At-Large Pat Graham, Position 4 At-Large Daiquiri Beebe, Ward 1 Russell Humphrey, Mayor Pro Tem, Ward 2 Deloris Massey, Ward 3 Jon Strong, Ward 4 HUNTSVILLE CITY COUNCIL AGENDA TUESDAY, AUGUST 16, 2022 REGULAR SESSION 6:00 P.M. - City Council Chambers Huntsville City Hall, 1212 Avenue M, Huntsville, Texas, 77340 Persons with disabilities who plan to attend this meeting and may need auxiliary aids or services are requested to contact the City Secretary’s office (936.291.5413) two working days prior to the meeting for appropriate arrangements. MAIN SESSION (6:00 p.m.) CALL TO ORDER INVOCATION AND PLEDGES - U.S. Flag and Texas Flag: Honor the Texas Flag. I pledge allegiance to thee, Texas, one state, under God, one, and indivisible. 1. CONSENT AGENDA The presiding officer will call for public comments before action is taken on these items. (Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion by request of a member of Council.) a. Consider approving the Minutes from the August 2, 2022, Regular City Council Meeting. Kristy Doll, City Secretary b. Consider adoption of Ordinance 2022-23 to amend the budget for FY 21-22 and/or CIP Project budgets 2. STATUTORY AGENDA a. Discuss the Preliminary Service and Assessment Plan (PSAP) for Public Improvement District (PID) number 1, to be known as “The Reserves of Huntsville”, a 140-lot residential subdivision located in the 3400 block of State Highway 30 west. Kevin Byal, Director of Development Services b. Consider authorizing the City Manager to enter into a Development Agreement with CBA Strategic Fund II, LP., for the development of “The Reserves of Huntsville”, PID No. 1, a 140-lot residential subdivision located in the 3400 block of State Highway 30 west. Kevin Byal, Director of Development Services c. Consider approving Resolution 2022-23, a resolution creating "The Reserves of Huntsville" Public Improvement District (PID) in accordance with Chapter 372 of the Texas Local Government Code as amended, to create a public improvement district within the corporate limits of Huntsville. Kevin Byal, Director of Development Services Page 1 of 149 2 3. CITY COUNCIL/MAYOR/CITY MANAGER a. Consider directing the City Manager to initiate the process to rename two city streets in honor of James Patton and Linda Pease. Deandra (Dee) Mullins, Councilmember 4. REQUESTS FOR CITIZEN PARTICIPATION (An opportunity for citizens to be heard on any topic and for the City Council to participate in the discussion. No action will be taken.) a. Ian McPhail - Would like to address diversity and inclusion as a means of interesting college students to patronize local Huntsville businesses. Ian McPhail 5. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA 6. ITEMS OF COMMUNITY INTEREST ADJOURNMENT *If during the course of the meeting and discussion of any items covered by this notice, City Council determines that a Closed or Executive session of the Council is required, then such closed meeting will be held as authorized by Texas Government Code, Chapter 551, Section 551.071 – consultation with counsel on legal matters; 551.072 – deliberation regarding purchase, exchange, lease or value of real property; 551.073 – deliberation regarding a prospective gift; 551.074 – personnel matters regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; 551.076 – implementation of security personnel or devices; 551.087 – deliberation regarding economic development negotiation; Sec. 551.089 - deliberation regarding security devices or security audits; and/or other matters as authorized under the Texas Government Code. If a Closed or Executive session is held in accordance with the Texas Government Code as set out above, the City Council will reconvene in Open Session to take action, if necessary, on the items addressed during Executive Session. CERTIFICATE I, Kristy Doll, City Secretary, do hereby certify that the above notice was posted on the City Hall bulletin board, a place convenient and readily accessible to the general public at all times, and to the City’s website, www.HuntsvilleTX.gov, in compliance with Chapter 551, Texas Government Code. DATE OF POSTING: August 11, 2022 Kristy Doll TIME OF POSTING: 4:30 p.m. Kristy Doll, City Secretary TAKEN DOWN: Page 2 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 1.a. Agenda Item: Consider approving the Minutes from the August 2, 2022, Regular City Council Meeting. Initiating Department/Presenter: City Secretary Presenter: Kristy Doll, City Secretary Recommended Motion: Move to approve the Minutes from the August 2, 2022, Regular City Council Meeting. Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Kristy Doll Associated Information: 1. City Council Meeting Minutes August 2, 2022 Page 3 of 149 1 MINUTES FROM THE HUNTSVILLE CITY COUNCIL REGULAR MEETING HELD ON THE 2nd DAY OF AUGUST 2022, IN THE CITY HALL, LOCATED AT 1212 AVENUE M, IN THE CITY OF HUNTSVILLE, COUNTY OF WALKER, TEXAS, AT 6:00 P.M. The Council met in a joint workshop with the Planning Commission at the Huntsville Public Library located at 1219 13th Street. The Council met in a regular session with the following: COUNCILMEMBERS PRESENT: Mayor Brauninger, Mayor Pro Tem Humphrey, Councilmember Ward 1 Beebe, Councilmember At-Large Position 1 Lyle, Councilmember At- Large Position 2 Mullins, Councilmember Ward 3 Massey, Councilmember At-Large Position 3 McKenzie, Councilmember Ward 4 Strong, Councilmember At-Large Position 4 Graham COUNCILMEMBERS ABSENT: OFFICERS PRESENT: Aron Kulhavy, City Manager; Kristy Doll, City Secretary OFFICERS ABSENT: Leonard Schneider, City Attorney WORKSHOP (5:00 P.M.) a. Receive Consultant's recommendations on Development Districts Armon Irones, City Planner MAIN SESSION (6:00 p.m.) CALL TO ORDER (6:00 p.m.) Mayor Brauninger called the meeting to order at 6:00 p.m. INVOCATION AND PLEDGES - U.S. Flag and Texas Flag: Honor the Texas Flag. I pledge allegiance to thee, Texas, one state, under God, one, and indivisible. Councilmember McKenzie gave the invocation and pledges were led by Mayor Brauninger. PUBLIC HEARING a. Public Hearing to hear testimony concerning the consideration of a Conditional Use Permit Application for the creation of a Vehicle Maintenance Shop to be developed on property located at I-45 North Feeder Road on Walker County Property ID #34333. Mayor Brauninger opened the Public Hearing at 6:01 p.m. City Planner, Armon Irones, provided information on the Conditional Use Permit application for the creation of a vehicle maintenance shop to be developed on the property located at I-45 North Feeder Road on Walker County Property Id # 34333. Leslie Reel, with L Squared Engineering and Developer did a presentation on the Conditional Use Permit application, Page 4 of 149 2 Citizen comments in support of the Conditional Use Permit application: None Citizen comments in opposition of the Conditional Use Permit application: Thomas Leeper spoke in opposition with concerns. Mayor Brauninger closed the Public Hearing at 6:27 p.m. 1. CONSENT AGENDA The presiding officer will call for public comments before action is taken on these items. (Approval of Consent Agenda authorizes the City Manager to implement each item in accordance with staff recommendations. An item may be removed from the Consent Agenda and added to the Statutory Agenda for full discussion by request of a member of Council.) a. Consider approving the Minutes from the July 19, 2022, Regular City Council Meeting. Kristy Doll, City Secretary b. Consider adoption of Ordinance 2022-22 to amend the budget for FY 21-22 and/or CIP Project budgets. c. Consider authorizing the City Manager to enter into an agreement with LJA Engineering for professional engineering services for the CIP FY 21-22 Storm Sewer Replacement Projects. Kathlie Jeng-Bulloch, City Engineer Councilmember Daiquiri Beebe made a motion to approve the Consent Agenda items a, b, and c. The motion was seconded by Councilmember Pat Graham. The motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle, Deandra (Dee) Mullins; No – None. 2. STATUTORY AGENDA a. Consider approving a Conditional Use Permit Application for the creation of a Vehicle Maintenance Shop to be developed on property located at I-45 North Feeder Road on Walker County Property ID #34333. Armon Irones, City Planner Councilmember Daiquiri Beebe made a motion to approve a Conditional Use Permit Application 02-2022, allowing for the creation of a Vehicle Maintenance Shop to be developed on property located at I-45 Feeder Road on Walker County Property ID #34333, in accordance with the conditions of the draft letter of approval as recommended by the Planning Commission. The motion was seconded by Councilmember Vicki McKenzie. The motion passed 9-0. Yes: Andy Brauninger, Russell Humphrey, Daiquiri Beebe, VIcki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No: None b. FIRST READING Consider authorizing the City Manager to award and enter into a contract with Frost Construction for Construction Services on the redesigned Martin Luther King Jr. Community Center Renovation Project. Page 5 of 149 3 Rick Rudometkin, Deputy City Manager Penny Joiner, Director of Parks and Leisure Councilmember Vicki McKenzie made a motion to waive the second reading requirements and consider authorizing the City Manager to award and enter into a contract with Frost Construction for Construction Services on the redesigned Martin Luther King Jr. Community Center Renovation Project. The motion was seconded by Councilmember Pat Graham. The motion passed 9-0. Yes - Andy Brauninger, Russell Humphrey, Daiquiri Beebe, Vicki McKenzie, Deandra (Dee) Mullins, Deloris Massey, Jon Strong, Pat Graham, Bert Lyle; No: None c. Consider approval of announcing the City Council’s intention to adopt a tax rate in compliance with the Texas State’s Truth in Taxation laws; a rate not to exceed $0.3075 per $100 valuation for the City’s 2022 – 2023 Fiscal Year (Tax Year 2022). Steve Ritter, Finance Director Councilmember Daiquiri Beebe made a motion to approve the City Council’s intention to adopt a tax rate in compliance with the Texas State’s Truth in Taxation laws; a rate not to exceed $0.3075 per $100 valuation for the City’s 2022 – 2023 Fiscal Year (Tax Year 2022). The motion was seconded by Councilmember Pat Graham. The motion passed 9- 0. Roll call vote Yes: Pat Graham, Vicki McKenzie, Deandra (Dee) Howard Mullins, Bert Lyle, Jon Strong, Deloris Massey, Russell Humphrey, Daiquiri Beebe, Andy Brauninger; No - None 3. CITY COUNCIL/MAYOR/CITY MANAGER 4. REQUESTS FOR CITIZEN PARTICIPATION (An opportunity for citizens to be heard on any topic and for the City Council to participate in the discussion. No action will be taken.) a. Airianna Mckibbins - Reliable public transportation Ms. Mckibbins did not speak, she was not in attendance. 5. MEDIA INQUIRIES RELATED TO MATTERS ON THE AGENDA None 6. ITEMS OF COMMUNITY INTEREST Mayor and Council announced items of community interest. Aron Kulhavy, City Manager announced that Darryle Slaven, Assistant Police Chief, would serve as the Interim Police Chief until the new Chief is selected. Page 6 of 149 4 ADJOURNMENT Mayor Brauninger adjourned the meeting without objection at 6:45 p.m. WORKSHOP (Immediately following Regular Session) a. Receive a presentation on the FY 22-23 Capital Improvement Program Kathlie Jeng-Bulloch, City Engineer ATTEST: CITY OF HUNTSVILLE ____________________________ ________________________________ Kristy Doll, City Secretary Andy Brauninger, Mayor Page 7 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 1.b. Agenda Item: Consider adoption of Ordinance 2022-23 to amend the budget for FY 21-22 and/or CIP Project budgets Initiating Department/Presenter: Finance Presenter: Steve Ritter, Finance Director Recommended Motion: Move to adopt Ordinance 2022-23 to amend the budget for FY 21-22 and/or CIP Project budgets. Strategic Initiative: Goal #6 - Finance - Provide a sustainable, efficient and fiscally sound government through conservative fiscal practices and resource management. Discussion: Detailed explanation for the Budget Amendment is provided in the attachment, Exhibit A, to the Ordinance. The Budget Amendment was discussed with the Finance Committee at their August 2, 2022 meeting. Previous Council Action: Prior to this budget amendment Council had approved $2.62M of budget for construction for this project. At Council's August 2, 2022 meeting the construction contract for this project with Frost Construction in the amount of $3,081,395 was approved. Financial Implications: See the attached Ordinance and related Budget Amendment (Exhibit A) Approvals: Steve Ritter Rick Rudometkin Aron Kulhavy Kristy Doll Associated Information: 1. ORDINANCE 2022-23 - Budget Amendments 8.16.22 council meeting 2. UPDATED BA for 8-16-22 CM Page 8 of 149 ORDINANCE NO. 2022-23 AN ORDINANCE OF THE CITY OF HUNTSVILLE, TEXAS, AMENDING THE 2021- 2022 ANNUAL BUDGET AND CAPITAL IMPROVEMENTS PROJECTS (CIP) BUDGETS, ORDINANCE NO. 2021-27 TO AMEND ADOPTED EXPENDITURES OF THE BUDGET; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the 2021-2022 Annual Budget and CIP Budgets were adopted by Ordinance 2021-27 on September 21, 2021; WHEREAS, various unforeseen circumstances affecting the City have presented themselves during the course of the fiscal year; WHEREAS, the City Council considered the circumstances independently, deliberating appropriately on the associated revenues and expenditures and the overall impact on the general financial status of the City; WHEREAS, pursuant to the laws of the State of Texas and the City Charter of the City of Huntsville, Texas, the City Council has determined that it will be beneficial and advantageous to the citizens of the City of Huntsville to amend the annual budget for fiscal year 2021 – 2022 and the Capital Improvements Projects (CIP) budget as set forth herein; and WHEREAS, this ordinance combines the independent Council actions into one budget amendment document; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, that: Section 1. The findings set forth above are incorporated into the body of this ordinance. Section 2. The annual budget for fiscal year 2021 – 2022 is hereby amended to include the expenditures and revenues in Exhibit “A” and the Capital Improvements Projects budget is hereby amended to include the expenditures described in Exhibit “A” attached hereto and made a part of this ordinance as if set out verbatim herein. Section 3. All ordinances of the City in conflict with the provisions of this ordinance are hereby repealed, and all other ordinances of the City not in conflict with the provisions of this ordinance shall remain in full force and effect. Section 4. Should any section, portion, sentence, clause or phrase of this ordinance be declared unconstitutional or invalid for any reason, it shall not invalidate or impair the force or effect of any other section or portion of this ordinance. Section 5. The necessity for amending the budget for the fiscal year 2021 – 2022 and Capital Improvements Projects, as required by the laws of the State of Texas, requires that this ordinance shall take effect immediately from and after its passage, as the law in such cases provides. Section 6. This ordinance shall take effect immediately after its passage. PASSED AND APPROVED on this the 16th day of August 2022. THE CITY OF HUNTSVILLE, TEXAS __________________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: ____________________________ _____________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney Page 9 of 149 Budget Amendments FY 21-22 August 16, 2022 Council meeting Exhibit A Increase:General Fund - Transfer to CIP $600,000 Increase:General CIP - MLK Center CIP Project $600,000 Explanation: Construction bids were received and opened May 25th 2022. Four proposals were received and bids ranged from $5M to $6M dollars. Staff has worked with the project architect to reduce the scope of work to try to get within the projects existing Construction budget of approximately $2.62M with a not to exceed "council approved" amount of $3.2M. We were hopeful the cost was lower as this project is mostly a remodel and not new construction. (Additional building plans have already been prepared for future consideration). Frost Construction submitted a proposal of $3.53M. That is over the current approximate budget of $2.62M and over the not-to-exceed amount of $3.2M. Burditt and Frost worked through the final value engineering (VE) options and Frost Construction was able to reduce the total cost to $3,081,395. With this final cost, there is a need to come up with approximately $600,000 additional monies in order to have sufficient budget/funds to complete the project. Council approved the construction contract with Frost Construction at their August 2, 2022 meeting. This budget amendment provides for the needed funds and budget for the contract. Page 10 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 2.a. Agenda Item: Discuss the Preliminary Service and Assessment Plan (PSAP) for Public Improvement District (PID) number 1, to be known as “The Reserves of Huntsville”, a 140-lot residential subdivision located in the 3400 block of State Highway 30 west. Initiating Department/Presenter: Development Services Presenter: Kevin Byal, Director of Development Services Recommended Motion: This is a discussion item only. No action will be taken on the PSAP. When the final SAP is completed, a public hearing and action item will be presented. Strategic Initiative: Goal #4, Infrastructure - Ensure the quality of the City's utilities, transportation and physical structures so that the City’s core services can be provided in an effective and efficient manner. Discussion: This Preliminary Service and Assessment Plan (PSAP) is a required step in the creation of the Reserves of Huntsville Public Improvement District (PID) Number 1. DTA Public Finance, the city's PID administrator, prepared the PSAP in accordance with Chapter 372 of the Texas Local Government Code (TLGC) which requires that the PSAP must (i) cover a period of 5 years; (ii) define the annual indebtedness and the projected costs for improvements; and (iii) include a copy of the notice form required by Section 5.014, Property Code. The governing body of the municipality shall review and update the service plan annually for the purpose of determining the annual budget for improvements. The attached PSAP is the basic framework that will be implemented to guide the infrastructure finance component and subsequent assessment roll and anticipated annual installments for each property within the PID. Since market rates fluctuate frequently, the final Service and Assessment Plan (SAP) will be presented to the City Council once the financing bonds are ready to be issued and exact interest rates are known. The PASP states that it is anticipated each property owner will pay a PID rate of 1.1704 which would equate to an estimated $3,450 annual assessment on each lot. Previous Council Action: December 21, 2021 – City Council voted to approve the concept of creating a Public Improvement District for this specific project. February 1, 2022 – City Council approved resolution 2022-5 setting a public hearing date to solicit public input concerning the creation of Public Improvement District (PID) No. 1 for the Reserves of Huntsville. March 1, 2022 – City Council held a public hearing giving the public an opportunity to comment on the creation of the proposed PID. Financial Implications: There is no financial impact associated with this item. The financial impact of any action the Council considers will be included in the PID assessment. Page 11 of 149 Approvals: Kevin Byal Leonard Schneider Rick Rudometkin Aron Kulhavy Kristy Doll Associated Information: 1. DRAFT Preliminary Service Assessment Plan - The Reserves (8.5.2022) Page 12 of 149 Page 13 of 149 Page 14 of 149 Page 15 of 149 Page 16 of 149 Page 17 of 149 Page 18 of 149 Page 19 of 149 Page 20 of 149 Page 21 of 149 Page 22 of 149 Page 23 of 149 Page 24 of 149 Page 25 of 149 Page 26 of 149 Page 27 of 149 Page 28 of 149 Page 29 of 149 Page 30 of 149 Page 31 of 149 Page 32 of 149 Page 33 of 149 Page 34 of 149 Page 35 of 149 Page 36 of 149 Page 37 of 149 Page 38 of 149 Page 39 of 149 Page 40 of 149 Page 41 of 149 Page 42 of 149 Page 43 of 149 Page 44 of 149 Parcel ID Owner1 Total Lots Outstanding PID Assessment Principal 11372 PHD-HUNTSVILLE 34, L.P. 140 $6,200,000.00 Total 140 $6,200,000.00 1Ownership data according to Williamson CAD, as of July 29, 2022. Appendix A The Reserves Public Improvement District Assessment Roll Assessment by Parcel ID and Phase Page 45 of 149 Page 46 of 149 Texas Property Code Section 5.014(A) Notice (Required Before Contract Execution) NOTICE OF OBLIGTIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.005), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This Notice requirement does not apply to a transfer: 1) Under a court order or foreclosure; 2) By a trustee in bankruptcy; 3) To a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) By a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court-ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) By a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust; 6) From one co-owner to another co-owner of an undivided interest in the real property; 7) To or from a government entity; or, 8) Of only a mineral interest, leasehold interest, or security interest. The following notice shall be given to the prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchases, subject to certain exception, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchase and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. Page 47 of 149 Texas Property Code Section 5.014(A) Notice (Required Before Contract Execution) NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENT TO HUNTSVILLE, TEXAS THE RESERVES PUBLIC IMPROVEMENT DISTRICT CONCERNING THE FOLLOWING PROPERTY ________________________________________________________________________ ________________________________________________________________________ As the purchaser of the real property described above, you are obligated to pay assessments to Huntsville, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within The Reserves Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from Huntsville. The exact amount of each annual installment will be approved each year by Huntsville City Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from Huntsville. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. Page 48 of 149 Texas Property Code Section 5.014(A) Notice (Required Before Contract Execution) The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. Buyer (Print Name) Signature Date Buyer (Print Name) Signature The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. Seller (Print Name) Signature Date Seller (Print Name) Signature Date Page 49 of 149 Texas Property Code Section 5.0143 Notice (Required At Closing And Must Be Recorded In Walker County Deed Of Records) AFTER RECORDING RETURN TO: ___________________ ___________________ ___________________ ___________________ NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENT TO HUNTSVILLE, TEXAS THE RESERVES PUBLIC IMPROVEMENT DISTRICT CONCERNING THE FOLLOWING PROPERTY ________________________________________________________________________ ________________________________________________________________________ As the purchaser of the real property described above, you are obligated to pay assessments to Huntsville, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within The Reserves Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from Huntsville. The exact amount of each annual installment will be approved each year by Huntsville City Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from Huntsville. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. Page 50 of 149 Texas Property Code Section 5.0143 Notice (Required At Closing And Must Be Recorded In Walker County Deed Of Records) Buyer (Print Name) Signature Date Buyer (Print Name) Signature STATE OF TEXAS § § COUTNY OF ______________ § The foregoing instrument was acknowledged before me by ___________________ and __________________, known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this ______________, 20___ Notary Public, State of Texas Page 51 of 149 Texas Property Code Section 5.0143 Notice (Required At Closing And Must Be Recorded In Walker County Deed Of Records) The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. Seller (Print Name) Signature Date Seller (Print Name) Signature STATE OF TEXAS § § COUTNY OF ______________ § The foregoing instrument was acknowledged before me by ___________________ and __________________, known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this ______________, 20___ Notary Public, State of Texas Page 52 of 149 Page 53 of 149 H.E. McADAMS & SON SURVEYING, INC. Registered Professional Land Surveyors P.O. Box 5047, Huntsville, Texas 77342 TBPELS Firm No. 10194425 THE STATE OF TEXAS § COUNTY OF WALKER § I, Harold E. McAdams, Registered Professional Land Surveyor No. 2005, do hereby state that the following field notes represent a survey made on the ground of the following described tract or parcel of land located in Walker County, Texas. Coordinates, bearings, distances, and areas surveyed herein are Grid N.A.D. 1983 (1993), Texas Central Zone referenced to the City of Huntsville Mapping Control Network and is based on the position of Control Point 7187 having published coordinates of N= 10,256,115.190 feet, E= 3,786,890.283 feet, and G.P.S. observations. Distances herein may be converted to Geodetic Horizontal (surface) by dividing by a Combined Scale Factor of 0.99988. Being 33.22 acres of land, situated in the City of Huntsville, LEWIS COX LEAGUE, Abstract No. 13, Walker County, Texas, and being part of a called 33.49-acre tract described as 28.31 acre and 10.05-acre tracts save and except 3.74 acre and 1.13-acre tracts in a Deed from James B. Hall Trust to James L. Hall Trust, et al dated October 25, 2016, and recorded in Volume 1259, page 633, Official Public Records of Walker County, Texas, said 33.22 acres being more definitely described as follows: BEGINNING at the northwest comer of said Hall Trust 33.49 acres and the northeast comer of a called 251.78-acre tract (51% interest) described as Tract II in a Deed from Thomas Carroll Cole, Jr., et al to Thomas Carroll Cole, Jr. and Jan Carroll Cole dated April 16, 1987, and recorded in Volume 42, page 5, Official Public Records, same 251.78-acre tract being described as 49% interest in a Deed: from Margaret Thomason Cole to Thomas Carroll Cole, Jr. and Jan Carroll Cole dated April 23, 1987, and recorded in Volume 42, page 9, Official Public Records in a south line of a called 515-acre tract described in a Deed from Ed. H. Cunningham, et al to John Ireland, Governor of the State of Texas and his successors (now being T.D.C.J. Institutional Division "Wynne Farm") dated June 23, 1883, and recorded in Volume Y, page 181, Deed Records of Walker County, set a 5/8" iron rod Metes-and-Bounds Description of The Property Page 54 of 149 with yellow plastic cap stamped "H.E. McAdams RPLS 2005" having coordinates of N= 10,257,920.90 feet and E= 3,787,525.41 feet for comer from which a 3" diameter concrete monument found bears N O1 °24'48"W- 1.44 feet and a 4"x4" concrete monument stamped "TPL" found for a southwest comer of said the State of Texas 515 acres bears S 87°26'52" W- 1215.30 feet; THENCE N 87°26'52"E, with the common boundary of said Hall Trust 33.49 acre and State of Texas 515 acre tracts, at 782.26 feet pass the common comer of said 28.31 and I0.05 acre tracts, from the said point found a 3" diameter concrete monument S 01°39'E- 1.20 feet, continuing a total distance of 1107.25 feet to the northeast comer of said Hall Trust 33.49 acres and the northwest comer of a called 34.499-acre tract described in a Deed from Thomason Family Trust to Amstad Development, LLC dated June 14, 2018, and recorded in Volume 1331, page 683, Official Public Records, a point for comer from which found a 5/8" iron rod with plastic cap stamped "Johnson Incorporate" S 01°54'40" E- 0.79 feet and a concrete monument with broken top bears N 87°26'52" E- 1761.56 feet; THENCE S 01°54'40"E, with the common boundary of said Hall Trust 33.49 acre and Amstad Development 34.499 acre tracts, a distance of 1163.19 feet to their common comer and the northeast comer of a called 3.74-acre tract (out said 33.49 acres) awarded to the State of Texas described in an Agreed Judgment styled The State of Texas v James L. Hall Trustee, et al dated April 28, 2008, and recorded in Volume 873, page 74, Official Public Records in a northwest right- of-way line of State Highway No. 30, found a 3.5" diameter Texas Department of Transportation (hereinafter referred to as TXDOT) concrete monument with brass disc stamped "850+o2.40" for comer; THENCE S 76°19'15"W, with the southeast line of said Hall Trust and the northwest right- of-way line of State Highway 30, a distance of 326.22 feet to an angle point in said line, found a 3.5" diameter TXDOT concrete monument with brass disc stamped "846+86.00"; THENCE S 71°l 5'07"W, continuing with the southeast line of said Hall Trust and the northwest right-of-way line of State Highway 30, at 512.12 feet pass a 3.5" diameter TXDOT concrete monument with brass disc stamped "841+90.93" found for reference, continuing a total distance of 836.35 feet to the southwest corner of said Hall Trust 33.49 acres and the southeast corner of said Cole 251.78 acre tract, found a 3.5" diameter TXDOT concrete monument with brass disc stamped "838+68.58" for comer; THENCE N O1°24'48"W, with the common boundary of said Hall Trust and Cole tracts, a distance of 1459.64 feet to the POINT OF BEGINNING. Page 55 of 149 Page 56 of 149 DRAWING ISSUEDATEBY#SHEETPROJECT* COMMENT*PLANS NOT RELEASED FOR CONSTRUCTION UNLESS INDICATED ABOVEDRAWING INFORMATIONSCALETDLRDRAWNEITFIRM REGISTRATION NUMBER 112353307 W. DAVIS STREET #100CONROE, TEXAS 77304OFFICE:936-647-042021123 EVA STREET #200MONTGOMERY, TEXAS 77356WWW.L2ENGINEERING.COMCLIENT INFORMATIONBTR ADVISORS, LLCPAUL GARZA26207 PARK IVY LANEKATY, TX 77494PROJECT ADDRESS3400 SH 30HUNTSVILLE, TX 77340THE RESERVE AT HUNTSVILLE7/21/22RHM0FOR REVIEW ONLY10755**RHMJPTHIS DOCUMENT IS RELEASED FORTHE PURPOSE OF INTERIM REVIEWUNDER THE AUTHORITY OF:E. LEVI LOVE, PE #99340ORJONATHAN WHITE, PE #127058FOR REVIEW PURPOSES ONLYNOT FOR CONSTRUCTIONLOT FITMENT LAYOUT1" = 100' (24x36)1" = 200' (11x17)Page 57 of 149 Page 58 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 2.b. Agenda Item: Consider authorizing the City Manager to enter into a Development Agreement with CBA Strategic Fund II, LP., for the development of “The Reserves of Huntsville”, PID No. 1, a 140-lot residential subdivision located in the 3400 block of State Highway 30 west. Initiating Department/Presenter: Development Services Presenter: Kevin Byal, Director of Development Services Recommended Motion: Move to authorize the City Manager to enter into a Development Agreement with CBA Strategic Fund II, LP., for the development of “The Reserves of Huntsville”, PID No. 1, a 140-lot residential subdivision located in the 3400 block of State Highway 30 west. Strategic Initiative: Goal #4, Infrastructure - Ensure the quality of the City utilities, transportation and physical structures so that the City’s core services can be provided in an effective and efficient manner. Discussion: The developer plans to develop the property as a single-family residential development having approximately 140 single family home lots for sale with a minimum area of 5,750 square feet upon the execution of this Agreement. Various elements of the project, including but not limited to the subsequent issuance of PID Bonds for the payment of certain costs for the construction of public improvements and other associated costs to benefit the property, and the repayment to the Developer for any costs advanced for the construction and acquisition of certain public improvements to benefit the property are set forth in this Agreement. As part of the agreement, the developer will provide additional amenities above the minimum code requirements including 75% brick exterior, dog park, and park/landscaping improvements around the required detention area. The staff has been working with the developer and our PID consultant, DTA Public Finance, on the details of this development agreement in conjunction with the creation of the PID for several months. Previous Council Action: December 21, 2021 – City Council voted to approve the concept of creating a Public Improvement District for this specific project. February 1, 2022 – City Council approved resolution 2022-5 setting a public hearing date to solicit public input concerning the creation of Public Improvement District (PID) number 1 for the Reserves of Huntsville. March 1, 2022 – City Council held a public hearing giving the public an opportunity to comment on the creation of the proposed PID. Financial Implications: There is no financial impact associated with this item. The financial impact of any action the Council considers will be included in the PID assessment. Page 59 of 149 Approvals: Kevin Byal Leonard Schneider Rick Rudometkin Aron Kulhavy Kristy Doll Associated Information: 1. Development Agreement (for CC packet) DTA Page 60 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 1 RESERVES OF HUNTSVILLE DEVELOPMENT AGREEMENT This Development Agreement (this “Agreement”) is executed between PHD – Huntsville 34, L.P., a Texas limited partnership (“Developer”), which, as used herein, shall include the current owner of the Property and its successors and permitted assigns, and the CITY OF HUNTSVILLE, TEXAS, a home rule city (the “City”) (Developer and City being referred to individually as a “Party” and collectively as the “Parties”), to be effective on the Effective Date as defined in Section 2. RECITALS WHEREAS, certain terms used in these Recitals are defined in Section 2; and WHEREAS, Developer and the City are sometimes collectively referenced in this Agreement as “Parties” or, each individually, as a “Party”; and WHEREAS, the City is a home rule city located within Walker County (“County”); and WHEREAS, Developer owns the approximately 33.22 acres of real property, which property is described by metes and bounds on Exhibit “A” and depicted on Exhibit “B” (“Property”) and located in Walker County; and WHEREAS, the Property is located wholly within the city limits of the City; and WHEREAS, the City will be the retail provider of water and sewer service to the Property; and WHEREAS, Developer plans to develop the Property, as a single family residential development having approximately 140 single family home lots upon the execution of this Agreement, its acquisition of the Property, the subsequent issuance of PID Bonds for the payment of certain costs for the construction and acquisition of public improvements and other associated costs to benefit the Property, and the repayment to the Developer for any costs advanced for the construction and acquisition of certain public improvements to benefit the Property as set forth in this Agreement; and WHEREAS, Developer desires and intends to design, construct, install, and/or make financial contributions to certain on-site and/or off-site public improvements to serve the development of the Property (collectively, “Authorized Improvements”), which Authorized Improvements are generally identified in Exhibit “C” and will be further described in the Service and Assessment Plan (the “SAP”); and WHEREAS, Developer intends for the design, construction and installation of the Authorized Improvements to occur in a phased manner and to dedicate such Authorized Improvements to the City, as applicable, for use and maintenance, subject to the approval of the plans and inspection of the Authorized Improvements in accordance with this Agreement and the City Regulations, as hereinafter defined, and contingent upon the partial or total financing of such Authorized Improvements; and Page 61 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 2 WHEREAS, Developer and the City agree that the cost of the Authorized Improvements shall be funded from the aggregate principal amount of the PID Bonds not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000); and WHEREAS, to accomplish the high-quality development of the Property envisioned by the Parties and to provide financing for the Authorized Improvements, the City has determined it is necessary for the City to create a public improvement district (“PID”) pursuant to Chapter 372, Texas Local Government Code, as amended (“PID Act”); and WHEREAS, in consideration of Developer’s agreements and representations contained herein, the City intends to provide or approve alternative financing arrangements that will enable Developer, in accordance with the PID Act, to: (a) fund a specified portion of the costs of the Authorized Improvements using the proceeds of PID Bonds issued by the City; and/or (b) obtain reimbursement for a specified portion of the costs of the Authorized Improvements, the source of which reimbursement will be installment payments from Assessments on the Property, provided that such reimbursements shall be subordinate to the payment of PID Bonds and Administrative Expenses; and WHEREAS, notwithstanding the City funding a portion of the cost of the Authorized Improvements through the issuance of PID Bonds, Developer will be required to fund any shortfall; and WHEREAS, the City, subject to the consent and approval of the City Council, and in accordance with the terms of this Agreement and all legal requirements, intends to: (a) adopt a SAP; (b) adopt an Assessment Ordinance (to pay for a specified portion of the estimated cost of the Authorized Improvements and the costs associated with the administration of the PID and issuance of the PID Bonds); and (c) issue PID Bonds, in one or more series, for the purpose of financing a specified portion of the costs of the Authorized Improvements and related costs (including Administrative Expenses) and paying issuance costs and the cost of funding all reserves, accounts, and funds required by the applicable Bond Ordinance (including a capitalized interest account, a debt service reserve fund, and the project fund); and WHEREAS, the City, in its sole legislative discretion, may issue PID Bonds periodically up to a total maximum of Six Million Five Hundred Thousand Dollars ($6,500,000 to finance a specified portion of the costs of the Authorized Improvements and related costs (including Administrative Expenses) and to pay issuance costs and the cost of funding all reserves, accounts, and funds required by the applicable Bond Ordinance (including a capitalized interest account, a debt service reserve fund, and the project fund); and WHEREAS, prior to the sale of the first PID Bond issue: (a) the City Council shall have approved and adopted the PID Resolution, a SAP and an Assessment Ordinance (collectively, the “PID Documents”); (b) the City shall have reviewed and approved the Home Buyer Disclosure Program; (c) owners of the Property constituting all of the acreage in the PID shall have executed a Landowner Agreement; and (d) Developer shall have delivered a fully executed copy of the Landowner Agreement(s) to the City; and Page 62 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 3 WHEREAS, the City recognizes that financing of the Authorized Improvements confers a special benefit to the Property within the PID and recognizes further that the development will promote state and local economic development; stimulate business and commercial activity in the municipality; and WHEREAS, the Parties intend that the Property will be developed pursuant to the concept plan attached hereto as Exhibit “D” (“Concept Plan”); and WHEREAS, this Agreement shall constitute a “permit” under Chapter 245 of the Texas Local Government Code. WHEREAS, a memorandum of this Agreement will be recorded in the deed records of the County (so as to bind Developer and all future owners of the Property or any portion thereof), and will provide regulatory certainty during the term of this Agreement; and WHEREAS, Developer will manage the construction of Authorized improvements to serve the Property and the City shall have and exercise jurisdiction over the development of the Property as set forth in this Agreement and the Governing Regulations regarding the design, construction, installation, and inspection of water, wastewater, drainage, roadway, and other public infrastructure to serve the Property; and WHEREAS, nothing contained in this Agreement shall be construed as creating a contractual obligation that controls, waives, or supplants the City Council’s legislative discretion or functions with respect to any matters not specifically addressed in this Agreement; NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants contained herein, and for such other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: AGREEMENT SECTION 1 RECITALS The Recitals in this Agreement, cited above, are true and correct and establish the basis upon which the Parties enter into this Agreement. SECTION 2 DEFINITIONS Unless the context requires otherwise, the following terms shall have the meanings hereinafter set forth: Actual PID Bond Fee means the actual costs of the PID Bond Fee as calculated by the City’s financial advisor, as described in Subsection 6.5. Additional Interest means the incremental interest rate charged on the Assessments securing PID Page 63 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 4 Bonds in excess of the interest rate charged on the PID Bonds issued by the City, not to exceed 0.50% as authorized pursuant to the PID Act and further described in Section 7.4. Administrative Expenses means, and shall include, without limitation, expenses incurred by the City in the establishment, administration, and operation of the PID. Agreement means this Reserves of Huntsville Development Agreement. Assessment means a special assessment levied by the City on property within the PID pursuant to Chapter 372, Texas Local Government Code, pursuant to an Assessment Ordinance, to pay for a specific portion of the Budgeted Cost, which shall be Authorized Improvement Costs. Assessment Fund means the interest-bearing assessment fund account created by the City for the PID to which the assessment revenues will be deposited once collected. Assessment Ordinance means an ordinance adopted by the City Council which authorizes Assessments to be levied on the Property in accordance with the PID Act, the purpose of which shall be to pay for a specified portion of the costs of certain Authorized Improvements and interest thereon as set forth in the SAP as well as the costs associated with the issuance of the PID Bonds that provide a special benefit to the Property. Assessment Roll(s) means an Assessment Roll(s) attached to the SAP or any other Assessment Roll in an amendment or supplement to the SAP or in an annual update to the SAP, which shows the total amount of the Assessment against each parcel assessed under the SAP related to the Authorized Improvements. Authorized Improvements means water, sewer, drainage, and roadway infrastructure and other public facilities needed to serve and fully develop the Property, which shall be constructed or caused to be constructed by Developer by or on behalf of the City, including but not limited to the improvements listed in Exhibit “C.” Authorized Improvement Costs means the design, engineering, permits, fees, construction costs, construction management, and inspection costs of the Authorized Improvements, performance and maintenance bonds, bidding, support, administrative and inspection costs, as further detailed in Exhibit “C”. Bond Ordinance means an ordinance adopted by the City Council that authorizes and approves the issuance and sale of the PID Bonds by the City. Budgeted Cost(s) with respect to any given Authorized Improvement means the estimated cost of such improvement as set forth in Exhibit “C.” Build-Out means, for the District, that one hundred and forty (140) single-family homes expected to be developed within the District have received their certificates of occupancy from the City. The Developer shall notify the City if the final number of homes deviates from the initial projection. Page 64 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 5 Certification for Payment Form means a certificate which shall be submitted to the City no more frequently than monthly, and no less frequently than monthly if requested by the City, with all paid invoices, bills, and receipts for work completed on any of the Authorized Improvements, in the form of Exhibit “G” attached hereto. City means the City of Huntsville, home rule city located in Walker County, Texas. City Administrator means the City Manager of the City of Huntsville, Texas, or a person designated to act on behalf of that individual if the designation is in writing and signed by the current or acting City Manager. City Code means the Code of Ordinances, City of Huntsville, Texas. City Council means the City Council of the City of Huntsville, Texas. City Regulations means the City Code as defined herein, the City’s subdivision regulations, the City’s engineering design standards, all International Code Council-sanctioned and National codes, as amended and as adopted by the City, including but not limited to the International Building, Construction, Electrical, Energy Conservation, Fire, Fuel Gas, Mechanical, Plumbing, Residential and similar standard codes, and other policies duly adopted by the City and in effect on the Effective Date of this Agreement. Concept Plan means the Concept Plan agreed to by the Parties and that is depicted in Exhibit “D”. Cost Overruns means actual Authorized Improvement Costs that are more than the Budgeted Costs set forth in the SAP, as described in Subsection 6.2. Cost Underruns means actual Authorized Improvement Costs that are less than the Budgeted Costs set forth in the SAP, as described in Subsection 6.3. Developer means PHD-Huntsville 34, LP, a Texas limited partnership, and its successors and assigns, responsible for developing all or any portion of the Property in accordance with this Agreement. Development means the development on the Property that is the subject of this Agreement. Development Standards means those development standards applicable to the Property as agreed to by the Parties, as set forth in this Agreement. District means the Reserves of Huntsville Public Improvement District. Effective Date means the date on which the last of the Parties has executed this Agreement End Buyer means any developer, developer homebuilder, homebuilder, homeowner, tenant, user, or owner of a Fully Developed and Improved Lot. Page 65 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 6 Force Majeure means, and shall include without limitation, acts of God, strikes, lockouts, or other industrial disturbances, acts of a public enemy, acts or orders of any kind of the Government of the United States or the State of Texas, or any civil or military authority, insurrection, riots, epidemics, pandemics, quarantine, viral outbreaks, landslides, lightning, earthquake, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraint of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines or canals, partial or entire failure of water supply, or other acts, events, causes, or circumstances not within the reasonable control of the Party claiming such inability and that could not have been avoided by such Party with the exercise of good faith, due diligence, and reasonable care. Fully Developed and Improved Lot means any lot in the Property, regardless of proposed use, intended to be served by the Authorized Improvements and for which a final plat has been approved by the City and recorded in the Real Property Records of Walker County, Texas. HOA means a non-profit homeowners association created to have jurisdiction over the Property. Home Buyer Disclosure Program means the disclosure program, administered by the PID Administrator, as set forth in a document in the form of Exhibit “E”, which establishes a mechanism to disclose to each End Buyer the terms and conditions under which that End Buyer’s lot is burdened by the PID. Improvement Account of the Project Fund means that account as defined or described in any Indenture. Incremental Additional Interest refers to the incremental Additional Interest charged on the annual Assessments due on the assessed property owned by the Developer prior to the Build-Out and is based on an incremental rate difference between the 0.25% assessed, pursuant to Section 7.4, and the maximum authorized rate of 0.50%, as further described in Section 7.5. Indenture means a trust indenture by and between the City and a trustee bank under which the PID Bonds are secured, and funds disbursed. Landowner(s) means the Developer and any additional owners of the Property. Landowner Agreement means the agreement, as set forth in a document in the form of Exhibit “F” of an owner of the Property consenting to the form and terms of the PID Documents. Notice means any notice required or contemplated by this Agreement (or otherwise given in connection with this Agreement). Parties means, collectively, Developer and the City; Party, individually, means either Developer or the City. Page 66 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 7 Payment Certificate means the Certification for Payment Form, as generally set forth in Exhibit “G,” submitted by Developer to the City for approval of the reimbursement of Authorized Improvement Costs from PID Bond proceeds. PID means a public improvement district created by the City for the benefit of the Property pursuant to Chapter 372, Texas Local Government Code, as amended; in this instance and for purposes of this Agreement, the PID means the Reserves of Huntsville Public Improvement District. PID Act means Chapter 372, “Improvement Districts in Municipalities and Counties,” Texas Local Government Code, as amended. PID Administrator means a company, entity, employee, or designee of the City, who is experienced in public improvement districts and assessment administration and who shall have the responsibilities provided in the SAP, or any other agreement or document approved by the City, related to the duties and responsibilities for the administration of the PID. PID Bond Fee means that fee payable by Developer to the City as defined in Section 6.5. PID Bonds means those assessment revenue bonds issued by the City and secured by Assessments on property within the PID. PID Documents means the City Council-approved and adopted (a) PID Resolution; (b) SAP; and (c) Assessment Ordinance, as described in the Recitals to this Agreement. PID Resolution means the resolution adopted by the Council creating the PID pursuant to Section 372.010 of the PID Act and approving the advisability of the Authorized Improvements. Property means the real property described by metes and bounds on Exhibit “A” and depicted on Exhibit “B”, consisting of approximately 33.22 acres. Public Infrastructure means all water, sewer, drainage, and roadway and other public infrastructure necessary to serve the full development of the Property. Real Property Records of Walker County means the official land recordings of the Walker County Clerk’s Office. Service and Assessment Plan (or SAP) means the PID Service and Assessment Plan adopted by the City Council, and amended annually, if needed, by the City Council pursuant to the PID Act for the purpose of assessing allocated costs against property located within the boundaries of the PID and having terms, provisions and findings approved by the City, as required by this Agreement. Walker County means Walker County, Texas. THE DEVELOPMENT Page 67 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 8 3.1. Scope of Agreement. This Agreement establishes provisions for the apportionment, levying, and collection of Assessments on the Property within the PID, the construction of the Public Infrastructure, reimbursement, acquisition, ownership and maintenance of the Public Infrastructure, and the issuance of PID Bonds for the financing of the Public Infrastructure benefitting the property within the PID. 3.2. Project Overview – The Development. (a) The Developer will undertake or cause the undertaking of the design, development, construction, maintenance, management, use and operation of the Development, and will undertake the design, development and construction of the Public Infrastructure. The Development will consist of the following elements: (i) Approximately 140 single family home lots; (ii)Unless otherwise agreed by the Parties, all lots, shall contain a minimum of 5,750 square feet; (iii)Homes built within the Development shall consist of at least 75% brick exterior; (iv)Enhanced subdivision amenities, as shown in Exhibit H, will be constructed and maintained in perpetuity by the HOA. SECTION 4 PUBLIC IMPROVEMENT DISTRICT 4.1 Creation and Levy of Assessments by the City. The City shall use its best efforts to initiate and approve all necessary documents and ordinances required to effectuate this Agreement, to create the PID, to levy the Assessments, and to prepare and approve a preliminary SAP providing for the levy of the Assessments on the Property within the PID. Promptly following preparation and approval of a preliminary SAP reasonably acceptable to Developer and the City, and subject to the City Council making findings that the Authorized Improvements confer a special benefit on the Property, the City Council shall consider an Assessment Ordinance and final SAP. Developer shall develop the Property consistent with the terms of this Agreement. Nothing contained in this Agreement, however, shall be construed as creating a contractual obligation that controls, waives, or supplants the City Council’s legislative discretion or functions. 4.2 PID Application Review Fee: A non-refundable application review fee of $10,000 is required at the time a PID petition is filed. If the City decides it is in its best interest to establish a PID, a Development Agreement will be entered into with the Developer. The Development Agreement will allow the City to utilize the $10,000 deposit to pay for the City's costs for staff, including the City Attorney, City Engineer, and City Planner, and to reimburse third-party consultants, including but not limited to Bond Counsel, a Financial Advisor, a PID Administrator, a Trustee, an Underwriter, an Appraiser, and more. If such costs exceed the initial deposit, then Developer shall forward additional monies to the City sufficient to cover such costs. Page 68 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 9 4.3 Acceptance by Developer of Assessments and Recordation of Covenants Running with the Land. Concurrently with the levy of the Assessments, Developer shall approve and accept in writing the levy of the Assessment(s) on all land owned by Developer within the PID, shall approve and accept in writing the Home Buyer Disclosure Program, and shall cause to be recorded against the Property covenants running with the land that will bind any and all current and successor developers and owners of the Property to: (a) pay the Assessments, with applicable interest and penalties thereon, as and when due and payable hereunder and that the purchasers of such land take their title subject to, and expressly assume, the terms and provisions of such assessments and the liens created thereby; and (b) comply with the Home Buyer Disclosure Program. SECTION 5 AUTHORIZED IMPROVEMENTS 5.1 Authorized Improvements. Budgeted Costs, including those estimated expenses related to the Authorized Improvements, are subject to change and shall be updated by the City consistent with the SAP, as may be updated and amended, and the PID Act, and shall be included on each approved final plat(s) for the Property as each final plat for each phase of the Property is approved by the Planning Commission. Developer shall include an updated Exhibit “C” with each final plat application, which shall be submitted to the City Council for consideration and approval concurrently with the submission of each final plat. Upon approval by the City Council of an updated Exhibit C, this Agreement shall be deemed amended to include such approved updated Exhibit “C.” The Authorized Improvement Costs and the timetable for installation of the Authorized Improvements will be reviewed by the Parties in an annual update of the SAP adopted and approved by the City. 5.2 Construction, Ownership, and Transfer of Authorized Improvements. (a) Construction Plans. Developer, in accordance with its development schedule, shall prepare, or cause to be prepared, plans and specifications for each of the Authorized Improvements and have them submitted to the City for approval in accordance with this section. Any written City approval or denial must be based on compliance with applicable City Regulations. (b) Contract Award. The contracts for construction of Authorized Improvements shall be left in the name of Developer. Developer’s engineers shall prepare, or cause to be prepared, contract specifications and necessary related documents for the Authorized Improvements. Developer shall administer all contracts. The Budgeted Costs, which are estimated on Exhibit C, as realized, shall be paid from PID Bond proceeds or caused to be paid by Developer, or Developer’s assignee, and shall be reimbursed from the proceeds of the PID Bonds in accordance with the Indenture, or reimbursed by the collected Assessments levied pursuant to the terms of any reimbursement agreement. Until such Budgeted Costs, as realized, are paid in full by the City pursuant to the terms of this Agreement, the Indenture, or any reimbursement agreement, then unpaid monies owed by the City under any reimbursement agreement, or the Indenture shall bear interest as described therein. (c) Construction Standards and Inspection. The Authorized Improvements and all other Public Infrastructure required for the full development of the Property shall be constructed and Page 69 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 10 inspected in accordance with applicable state law, the City Regulations, the Development Standards, and other development requirements, including those imposed by the City and any other governing body or entity with jurisdiction over the Authorized Improvements. All applicable fees, including permit fees and inspection fees, shall be paid by Developer. All applicable permits and/or fees related to Authorized Improvements shall be eligible for funding by the PID. (d)The City will allow the construction of the proposed Public Infrastructure to commence once construction documents have been approved. The construction documents may be approved once they satisfy the City rules and regulations and will not be held up for the completion of the McGary Creek Lift Station or TXDOT approvals. Developer may commence construction for all Public Infrastructure (except tying into the City sewer main), at his own risk, prior to completion of the McGary Creek Lift Station and/or TXDOT approvals. The Public Infrastructure cannot be accepted by the City until TXDOT approval is provided to the City. (e) Competitive Bidding. This Agreement and construction of the Authorized Improvements are anticipated to be exempt from competitive bidding pursuant to Texas Local Government Code, Sections 252.022(a)(9) and 252.022(a)(11), based upon current cost estimates. In the event that the actual costs for the Authorized Improvements do not meet the parameters for exemption from the competitive bid requirement, then either competitive bidding or alternative delivery methods may be utilized by the City as allowed by law. (f) Easements, Right-of-Way. The Developer shall dedicate or convey by final plat or separate instrument, without cost to the City, all property rights (which may be an easement) necessary for the operation and maintenance of the Authorized Improvements, at the completion of the Authorized Improvements and acceptance by the City. (g) Ownership. All of the Authorized Improvements shall be owned by the City, upon acceptance of them by the City. Developer agrees to take any action reasonably required by the City to transfer or otherwise dedicate or ensure the dedication of easements and facilities for the Authorized Improvements to the City and the public. 5.3 Operation and Maintenance. (a) Upon inspection, approval, and acceptance of the Authorized Improvements or any portion thereof, the City shall maintain and operate the Authorized Improvements listed in Exhibit “C” or any accepted portion thereof. (b) The HOA shall maintain and operate the open spaces, trails, common areas, detention/retention ponds, right- of-way irrigation systems, right-of-way landscaping, screening walls, and any other common improvements or appurtenances in the benefited residential portions of the Property not maintained and operated by the City, provided that all Authorized Improvements maintained by the HOA shall be public improvements. 5.4 Administration of Construction of Public Infrastructure. The Parties agree that the Developer will be responsible to construct or cause the construction of the on-site and off-site storm, Page 70 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 11 roadway, water, and sewer infrastructure for the Property necessary to serve the Development and as listed in Exhibit “C.” 5.5 Water and Wastewater Service. (a) The City currently holds the CCNs for water and sewer service to the Property. The Property will be served by the City under the same terms as all other similarly situated customers located in the City. SECTION 6 PAYMENT OF AUTHORIZED IMPROVEMENTS AND DEVELOPMENT CHARGES 6.1 Improvement Account of the Project Fund. On the date of issuance of any PID Bonds, the City shall establish the Improvement Account of the Project Fund in accordance with the applicable Indenture. Any Improvement Account of the Project Fund shall be maintained as provided in the Indenture and shall not be commingled with any other funds of the City. Any Improvement Account of the Project Fund shall be administered and controlled (including signatory authority) by the City, or the trustee bank for the PID Bonds, and funds in the Improvement Account of the Project Fund shall be deposited and disbursed in accordance with the terms of the Indenture. In the event of any conflict between the terms of this Agreement and the terms of the Indenture relative to deposit and/or disbursement, the terms of the Indenture shall control. 6.2 Cost Overrun. If the total cost of an Authorized Improvement (or segment or section thereof) exceeds the total amount of the Budgeted Cost for that Authorized Improvement (or segment or section thereof) (a “Cost Overrun”), Developer shall be solely responsible for payment of the remainder of the costs of that Authorized Improvement (or segment or section thereof), except as provided in Section 6.3 below. 6.3 Cost Underrun. If, upon the completion of construction of an Authorized Improvement (or segment or section thereof) and payment or reimbursement for such Authorized Improvement, there are Cost Underruns, any remaining Budgeted Cost(s) may be available to pay Cost Overruns on any other Authorized Improvement with the approval of the City Administrator and provided that all Authorized Improvements as set forth in the SAP are undertaken at least in part. The elimination of a category of Authorized Improvements in the SAP will require an amendment to the SAP. Prior to completion of all the Authorized Improvements within an improvement category, as listed in the applicable SAP and the applicable PID phase, ten percent (10%) of funds available from an improvement category may be used as Cost Underruns and applied to another improvement category. If, upon completion of the Authorized Improvements in any improvement category, any funds remain in such category, those funds may be used to reimburse Developer for any qualifying costs of the Authorized Improvements that have not been paid. 6.4 Remainder of Funds in the Improvement Account of the Project Fund. If funds remain in the Improvement Account of the Project Fund after the completion of all Authorized Improvements and the payment of all Authorized Improvements Costs as provided for in the Indenture, then such funds shall thereafter be the exclusive property of the City and shall be used by the City as provided for in the SAP and the Indenture, or any other use applicable to the Property as provided by law. In the Page 71 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 12 event of any conflict between the terms of this Agreement and the terms of the Indenture relative to deposit and/or disbursement, the terms of the Indenture shall control. 6.5 Qualified Tax-Exempt Status. If in any calendar year (including 2022) the City issues PID Bonds that would constitute a bank-qualified debt issuance but for the issuance of the PID Bonds or other bonds supporting public improvements for non-City owned development projects, including either bonds authorized by the PID Act, then Developer shall pay to the City a fee (the “PID Bond Fee”) to compensate the City for the interest savings the City would have achieved had the debt issued by the City been bank-qualified; provided, however, that all other developers or owners directly benefitting from the City issuing debt are similarly burdened with an obligation to compensate the City. The City shall calculate the PID Bond Fee for all series of PID Bonds and notify Developer of the total amount due at least ten (10) business days prior to pricing the first series of PID Bonds. Developer agrees to pay the estimate of the PID Bond Fee to the City on the later of (a) five (5) business days prior to pricing of any series of PID Bonds or other City debt, or (b) five (5) business days after receiving Notice from the City of the estimated amount of the PID Bond Fee due to the City. The City shall not be required to price or sell any series of PID Bonds until Developer has paid the PID Bond Fee. Upon the City’s approval of the PID Bonds, the City’s financial advisor shall calculate the actual costs of the PID Bond Fee (the “Actual PID Bond Fee”). The City will, within five (5) business days, notify Developer of the Actual PID Bond Fee. In the event the Actual PID Bond Fee is less than the estimated PID Bond Fee, the City will refund to Developer the difference between the Actual PID Bond Fee and the estimated PID Bond Fee within ten (10) business days of the date of the City’s notice to Developer of the Actual PID Bond Fee. If the Actual PID Bond Fee is more than the estimated PID Bond Fee, Developer will pay to the City the difference between the Actual PID Bond Fee and the estimated PID Bond Fee within ten (10) business days of the date of the City’s notice to Developer of the Actual PID Bond Fee. If a developer or owner (including Developer, as applicable) has paid all or part of a PID Bond Fee estimate for any particular calendar year to the City, and a subsequent developer or owner (including Developer) pays a PID Bond Fee to the City applicable to the same calendar year, each such later developer or owner (including Developer) shall be reimbursed by the City as necessary so as to place all developers and owners who have paid the fee for the same calendar year in the required payment proportion. Said reimbursement(s) shall be made by the City within ten (10) business days after the City’s receipt of the estimated PID Bond Fee payment(s) unless otherwise agreed to by the Parties, including, as applicable, other developers or owners. The City will deposit all payments of a PID Bond Fee estimate received from a developer or owner (including Developer, as applicable) into a segregated account until such time as (1) the City transfers the funds to a capital improvement project fund in conjunction with issuing City debt; and/or (2) the City refunds a portion of the PID Bond Fee estimate consistent with the pro rata formula above within ten (10) business days of issuing Bonds or agreement is made as to a different payment date. On or before January 15th of the following calendar year, the final PID Bond Fee shall be calculated. By January 31st of such year, any funds in excess of the final PID Bond Fee that remain in such segregated account on December 31st of the preceding calendar year shall be refunded to the developers or owners (including Developer, as applicable) and any deficiencies in the estimated PID Bond Fee paid to the City by any developer or owner (including Developer, as applicable) shall be remitted to the City by the respective developer or owner (including Developer, as applicable). Said payments shall be made Page 72 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 13 within ten (10) business days after January 31st of that year unless otherwise agreed to by the Parties, including, as applicable, other developers or owners. 6.6 Payment Process for Authorized Improvements. (a) The City shall authorize the payment and/or reimbursement of the Authorized Improvement Costs from PID Bond proceeds. Developer shall submit for approval to the City a Certification for Payment Form (no more frequently than monthly, and no less frequently than monthly if requested by the City for Authorized Improvement Costs, including a completed segment, section, or portion of an Authorized Improvement. The Certification for Payment Form is set forth in Exhibit “G,” and may be modified by the Indenture or, if applicable, a reimbursement agreement. The City shall review the sufficiency of each Certification for Payment Form submission (each, a “Payment Certificate”) to ensure compliance with this Agreement, compliance with City Regulations, and compliance with the SAP. The City shall review each Payment Certificate within ten (10) business days of receipt thereof and upon approval, certify the Payment Certificate pursuant to the provisions of the Indenture or, if applicable, a reimbursement agreement, and payment shall be made to such contractor or Developer as applicable, pursuant to the terms of the Indenture or, if applicable, a reimbursement agreement provided that funds are available under the Indenture or such reimbursement agreement. If a Payment Certificate is approved only in part, the City shall specify the extent to which the Payment Certificate is approved and payment for such partially approved Payment Certificate shall be made to the contractor or Developer as applicable, pursuant to the terms of the Indenture or, if applicable, a reimbursement agreement, provided that funds are available under the Indenture or reimbursement agreement. (b) If the City requires additional documentation, or timely disapproves or questions the correctness or authenticity of the Payment Certificate, the City shall deliver a detailed notice to Developer within five (5) business days of receipt thereof; payment with respect to the disputed portion(s) of the Payment Certificate shall not be made until Developer and the City have jointly settled such dispute or additional information has been provided to the City’s reasonable satisfaction. 6.7 Development, Review. and Inspection Fees. Development of any portion of the Property shall be subject to payment to the City of the applicable fees according to the City’s Regulations, including without limitation fees relating to platting, zoning requests, permitting, and any other charges and fees not expressly exempted or altered by the terms of this Agreement. SECTION 7 PID FINANCING 7.1 General. The City intends to issue the PID Bonds solely for the purpose of financing the costs of the Authorized Improvements and related costs (including Administrative Expenses) and paying issuance costs and the cost of funding all reserves, accounts, and funds required by the applicable Bond Ordinance (including a capitalized interest account, a debt service reserve fund, and the project fund). The City and Developer have determined and hereby agree that the estimated maximum aggregate principal amount of PID Bonds will not exceed Six Million Five Hundred Thousand Dollars ($6,500,000). The City staff will, from time to time, submit to the City Council Page 73 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 14 agenda items to approve the issuance of the PID Bonds by the City in an amount up to, but not to exceed, the estimated maximum aggregate principal Bond amount of Six Million Five Hundred Thousand Dollars ($6,500,000). The City will not be liable for any amount of unbonded or unlevied public improvement costs. Any unbonded or unlevied public improvement costs cost shall be payable only from bonds or by the Developer. 7.2 Term of PID Bonds. The City agrees that the PID Bonds will have a term of thirty (30) years. 7.3 Lien-to-Value. The City shall implement the PID Bond issue on the basis of an overall lien-to-value ratio of thirty-three and one-third percent (33 1/3%). An overall “lien-to-value ratio” is defined as that product produced by dividing by the total assessment to be placed on the Property within the boundaries of an assessment area by the total fair market value of the Property contained within the boundaries of such assessment area. In the event that an overall 33 1/3% lien-to-value ratio cannot be achieved, the City shall escrow a portion of the PID Bonds not supported by the overall lien-to-value requirement until such time as the Developer can demonstrate, through an MAI appraisal, that the overall 33 1/3% lien-to-value requirement has been obtained, at which point, the escrowed PID Bond proceeds will be available to fund Authorized Improvement Costs or to reimburse the Developer as appropriate. In determining the fair market value of the Property, the Authorized Improvements which are to be constructed with PID Bond proceeds and/or other infrastructure for which performance bonds have been obtained, will be treated for valuation purposes as if they were completed as of the date of valuation. 7.4 Additional Interest. Prior to the Build-out, the City shall charge the Additional Interest on the Assessments annually at the rate of 0.25%. After the Build-Out, the City shall have the authority to charge the Additional Interest on the Assessments annually at a rate subject to its discretion pursuant to the PID Act, as amended. 7.5 Incremental Additional Interest. On or around September 1 of each year, the PID Administrator shall determine the Incremental Additional Interest on the Assessments due on the assessed property owned by the Developer at the rate of 0.25%, representing the incremental rate difference between the 0.25% assessed pursuant to Section 7.4 and the maximum rate of 0.50% authorized pursuant to the PID Act. The PID Administrator shall promptly notify the City and Developer of the amount of Incremental Additional Interest due for the upcoming year once it becomes available, and the Developer shall have 5 business days to contest the amount. Within the 5 business days after the end of contest period, the Developer shall deliver to the City an irrevocable letter of credit instrument, or a credit instrument acceptable to the City, in the amount equal to the Incremental Additional Interest. The obligation of Incremental Additional Interest shall terminate and the letters of credit or other credit instruments cancelled and/or returned to the Developer once the District reaches Build-Out. 7.6 Governing Authority of Indenture. Notwithstanding the foregoing, the Indenture shall govern the terms of Sections 7.4 and 7.5, as applicable. SECTION 8 Page 74 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 15 ZONING 8.1 Zoning of Property. The Parties agree that the Concept Plan, the Development Standards, and the applicable provisions of this Agreement memorialize the preliminary plan for development of the Property and the Property is already zoned for the proposed use. 8.2 Full Compliance with City Standards. (a) When not in conflict with the terms and conditions of this Agreement, including the Development Standards, the development of the Property shall be subject to all applicable City Regulations, including but not limited to the City’s subdivision regulations and engineering design standards in effect on the Effective Date. Developer shall be subject to those fees and charges due and payable to the City in connection with the development and construction of the Property, including but not limited to platting and zoning request fees, building permit fees, inspection fees, and capital recovery fees, as detailed in Section 6 of this Agreement and in effect on the Effective Date. (b) Development and use of the Property, including, without limitation, the construction, installation, maintenance, repair, and replacement of all buildings, improvements, and facilities of any kind whatsoever on and within the Property, shall comply with the Concept Plan, Development Standards, and applicable City Regulations. The City acknowledges and agrees that the Concept Plan may be revised and refined by Developer as Developer continues its investigation of and planning for the Property, provided that in no case shall the Concept Plan be revised or refined to contradict any of the requirements of this Agreement. When not in conflict with the Concept Plan and the Development Standards, all buildings, improvements, and facilities constructed on and within the Property shall comply with the City Regulations, and applications for building permits and construction plans shall be submitted to the City for review and approval prior to the commencement of construction of such structures. The City, or its authorized designated representative, shall be solely responsible for issuing building permits and certificates of occupancy for all structures. 8.3 Phasing. The Parties acknowledge and agree that the Property may be developed in phases. If deemed necessary, Developer may submit a replat for all or any portions of the Property. Any replat shall generally conform to the Concept Plan, the City’s development code and be subject to City approval. 8.4 Conflicts. In the event of any direct conflict between this Agreement and any City Regulations or other ordinance, rule, regulation, standard, policy, order, guideline, or other City- adopted or City- enforced requirement, applicable to construction of the Public Infrastructure, whether existing on the Effective Date or hereinafter adopted, this Agreement, including its exhibits, as applicable, shall control. 8.5 Vested Rights. This Agreement shall constitute a “permit” (as defined in Chapter 245 of the Texas Local Government Code) that is deemed filed with the City on the Effective Date. DEVELOPER WAIVES ALL CLAIMS THAT ANY OBLIGATION INCURRED BY OWNER SET OUT IN THIS AGREEMENT CONSTITUTES A “TAKING”, AN ILLEGAL EXACTION, OR INVERSE CONDEMNATION OF ALL OR ANY PORTION OF THE PROPERTY. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, DEVELOPER DOES NOT, BY ENTERING INTO THIS AGREEMENT, WAIVE (AND Page 75 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 16 DEVELOPER EXPRESSLY RESERVES) ANY RIGHTS AND CLAIMS THAT DEVELOPER MAY HAVE ARISING FROM ANY ACTION BY THE CITY AFTER THE EFFECTIVE DATE. THE CITY SHALL NOT BE REQUIRED TO DETERMINE ROUGH PROPORTIONALITY OR NECESSITY AS PROVIDED FOR IN SECTION 212.904 OF THE TEXAS LOCAL GOVERNMENT CODE FOR ANY DEDICATIONS OR IMPROVEMENTS REQUIRED UNDER THIS AGREEMENT, AS AMENDED OR OTHERWISE PROPOSED BY OWNER. 8.6 Other Applicable Regulations. Notwithstanding Developer’s adherence to the City Regulations and other development standards cited in this Agreement including the Development Standards, the Property will be subject to the development regulations described in this Section 8.6, as adopted, and amended from time to time, so long as such new regulations are uniformly applied throughout the City, with the exception only of non-comparable areas within the City such as, for example, historic districts: (a) Regulations for sexually oriented businesses and the sale of fireworks; (b) Regulations to prevent imminent destruction of property or injury to persons from flooding; (c) Regulations to prevent the imminent destruction of property or injury to persons if the regulations do not: (a) affect lot size, lot dimensions, lot coverage, building size, residential or commercial density, or the timing of a project; or; (d) Building regulations, construction standards, or other requirements (e) Landscape and fence regulations, but only to the extent that such landscape and fence regulations do not affect lot size, lot dimensions, lot coverage, building size, residential or commercial density, or the timing of the project; and (f) Sign regulations but only to the extent such regulations do not affect lot size, lot dimensions, lot coverage, building size, residential or commercial density, or the timing of the project. SECTION 9 OBLIGATIONS; EVENTS OF DEFAULT; REMEDIES 9.1 Obligations of Developer. Notwithstanding any other provisions herein, Developer’s rights and obligations hereunder shall apply only to that portion of the Property it owns or is developing and to the portion of the Authorized Improvements benefitting such portion of the Property. 9.2 Events of Default. No Party shall be in default under this Agreement until notice of the alleged failure of such Party to perform, the nature of which is reasonably detailed, has been given in writing; however, that Party shall be given a reasonable time to cure the alleged failure (such reasonable time to be determined based on the nature of the alleged failure, but, unless otherwise stated in this Agreement or agreed to in writing by the Parties, in no event more than thirty (30) days after written notice of the alleged failure has been received). Notwithstanding the foregoing, no Party Page 76 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 17 shall be in default under this Agreement if, within the applicable cure period, the Party in receipt of the notice begins performance and thereafter diligently and continuously pursues performance until the alleged failure has been cured. Notwithstanding the foregoing, however, a Party shall be in default of its obligation to make any payment required under this Agreement if such payment is not made within twenty (20) business days after it is due. 9.3 Remedies. If a Party is in default, any non-defaulting Party may, at its option and without prejudice to any other right or remedy under this Agreement, seek any relief available at law or in equity against such breaching Party (but not any other Party), including, but not limited to, an action under the Uniform Declaratory Judgment Act, or actions for specific performance, mandamus, or injunctive relief. NOTWITHSTANDING THE FOREGOING, HOWEVER, NO DEFAULT UNDER THIS AGREEMENT SHALL ENTITLE THE NON-DEFAULTING PARTY TO TERMINATE THIS AGREEMENT OR LIMIT THE TERM OF THIS AGREEMENT. SECTION 10 ASSIGNMENT; ENCUMBRANCE 10.1 Assignment. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties. This Agreement and the obligations, requirements, or covenants to develop the Property shall be able to be assigned, without the prior written consent of the City, to (a) any person or entity that is or will become an owner of any portion of the Property (an “Owner”); (b) any affiliate or related entity of Developer; or (c) any lienholder on the Property. This Agreement and the obligations, requirements, or covenants to develop the Property shall not be assigned by Developer to a non-affiliate or non-related entity of Developer, or to a non-Owner without the prior written consent of the City Manager, which consent shall not be unreasonably withheld if the assignee demonstrates financial ability to perform. Any receivables due under this Agreement or any reimbursement agreement may be assigned by Developer without the consent of, but upon written notice to, the City pursuant to Section 10.5 of this Agreement. An assignee shall be considered an Owner for the purposes of this Agreement. Each assignment shall be in writing executed by Developer and the assignee and shall obligate the assignee to be bound by this Agreement to the extent this Agreement applies or relates to the obligations, rights, title, or interests being assigned. No assignment by Developer shall release Developer from any liability that resulted from an act or omission by Developer that occurred prior to the effective date of the assignment unless the City approves the release in writing. A copy of each assignment shall be provided to all Parties. Developer shall maintain written records of all assignments made by Developer to assignees, including a copy of each executed assignment and, upon written request from any Party (which includes the City) or assignee, shall provide a copy of such records to the requesting person or entity, and this obligation shall survive the assigning Party’s sale, assignment, transfer, or other conveyance of any interest in this Agreement or the Property. Notice to the City of any assignment by Developer shall conform to Section 10.5, below. 10.2 Encumbrance by Developer and Assignees. Developer and its assignees have the right, from time to time, to collaterally assign, pledge, grant a lien or security interest in, or otherwise encumber any of their respective rights, title, or interest under this Agreement (a) for the benefit of their respective lenders without the consent of, but with prompt written notice to, the City, and (b) to Page 77 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 18 any other person or entity with the City Administrator’s prior written consent (which consent shall not be unreasonably withheld, conditioned, or delayed). If the City Administrator fails to provide Developer or assignee with a reasonable written objection to a collateral assignment request within thirty (30) days of the City Administrator receiving such request, the collateral assignment shall be automatically deemed approved by the City. The collateral assignment, pledge, grant of lien or security interest, or other encumbrance shall not, however, obligate any lender to perform any obligations or incur any liability under this Agreement unless the lender agrees in writing to perform such obligations or incur such liability. Provided the City has been given a copy of the documents creating the lender’s interest, including Notice information for the lender, then that lender shall have the right, but not the obligation, to cure any default under this Agreement and shall be given a reasonable time to do so in addition to the cure periods otherwise provided to the defaulting Party by this Agreement; and the City agrees to accept a cure, not to be unreasonably withheld, offered by the lender as if offered by the defaulting Party. A lender is not a party to this Agreement unless this Agreement is amended, with the consent of the lender, to add the lender as a Party. Notwithstanding the foregoing, however, this Agreement shall continue to bind the Property and shall survive any transfer, conveyance, or assignment occasioned by the exercise of foreclosure or other rights by a lender, whether judicial or non-judicial. Any purchaser from or successor owner through a lender of any portion of the Property shall be bound by this Agreement and shall not be entitled to the rights and benefits of this Agreement with respect to the acquired portion of the Property until all defaults under this Agreement with respect to the acquired portion of the Property have been cured. 10.3 Assignees as Parties. An assignee authorized in accordance with this Agreement, and for which notice of assignment has been provided in accordance with Section 10.5 of this Agreement shall be considered a “Party” for the purposes of this Agreement. With the exception of an End Buyer, any person or entity, upon becoming an owner of land within the PID or upon obtaining an ownership interest in any part of the Property, shall be deemed to be a “Developer” and have all of the obligations of Developer as set forth in this Agreement and all related documents to the extent of said ownership or ownership interest. 10.4 Third-Party Beneficiaries. Subject to Section 10.1 of this Agreement, this Agreement inures only to the benefit of, and may only be enforced by, the Parties. No other person or entity shall have any right, title, or interest under this Agreement or otherwise be deemed to be a third-party beneficiary of this Agreement. 10.5 Notice of Assignment. Subject to Section 10.1 of this Agreement, the following requirements shall apply in the event that Developer sells, assigns, transfers, or otherwise conveys the Property or any part thereof and/or any of its rights or benefits under this Agreement: (a) within 30 days after the effective date of any such sale, assignment, transfer, or other conveyance, Developer must provide written notice of same to the City; (b) said notice must describe the extent to which any rights or benefits under this Agreement will be sold, assigned, transferred, or otherwise conveyed; Page 78 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 19 (c) said notice must state the name, mailing address, telephone contact information, and, if known, email address, of the person(s) that will acquire any rights or benefits as a result of any such sale, assignment, transfer, or other conveyance; and (d) the notice must be signed by a duly authorized person representing the Developer. SECTION 11 RECORDATION AND ESTOPPEL CERTIFICATES 11.1 Binding Obligations. After the Property is acquired by Developer, this Agreement, and all amendments thereto and assignments hereof shall be recorded in the property records of Walker County, Texas. This Agreement binds and constitutes a covenant running with the Property and, upon the Effective Date, is binding upon Developer and the City, and forms a part of any other requirements for development within the Property. This Agreement, when recorded, shall binding upon the Parties and their successors and assigns as permitted by this Agreement and upon the Property provided, however, this Agreement shall not be binding upon, and shall not constitute any encumbrance to title as to, any End-Buyer except for the land use and development regulations that apply to specific lots. An End-Buyer shall not be considered an Owner or Developer. For purposes of this Agreement, the Parties agree: (a) the term “End- Buyer” means any tenant, user, occupant, or owner that is intended to be a final user, of a fully developed and improved lot and does not include a builder; (b) the term “fully developed and improved lot” means any lot, regardless of proposed use, for which a final plat has been approved by the City and recorded in the County's real property records; and (c) the term “land use and development regulations that apply to specific lots” means all of the Governing Regulations. 11.2 Estoppel Certificates. From time to time upon written request of Developer or any future owner, and upon payment to the City of a $100.00 fee plus all reasonable costs incurred by the City in providing the certificate described in this section, the City Administrator, or his/her designee will, in his official capacity and to his reasonable knowledge and belief, execute a written estoppel certificate identifying any obligations of an owner under this Agreement that is in default or with the giving of notice or passage of time, would be in default; and stating, to the extent true, that to the best knowledge and belief of the City, Owner is in compliance with its duties and obligations under this Agreement, except as expressly identified. The City is entitled to recover all of the City's out-of- pocket expenses for gathering the information required to sign the estoppel certificate, including professional and consulting fees and related expenses, and such expenses shall be paid prior to the City releasing the estoppel certificate. SECTION 12 GENERAL PROVISIONS 12.1 Initial Term, Extension. The initial term of this Agreement shall be for a period of twenty (20) years beginning on the Effective Date. The initial term shall automatically be extended by one ten (10) year term unless formal action is taken by either Party, in writing, not to extend the initial term, such action, and notification of such action, to be taken no later than thirty (30) days before the expiration of the initial term. 12.2 Public Infrastructure, Generally. Except as otherwise expressly provided for in this Agreement, Developer shall provide all Public Infrastructure as specified in this Agreement, Page 79 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 20 including streets, utilities, drainage, and all other required improvements, at no cost to the City except as provided herein, and in accordance with the City Regulations and the Development Standards, and as approved by the City’s engineer or his or her agent. Developer shall cause the installation of all Public Infrastructure within all applicable time frames in accordance with the City Regulations unless otherwise approved herein. The Developer shall provide engineering studies, plan/profile sheets, and other construction documents at the time of platting as required by the City Regulations. The City’s engineer or his or her agent must approve such plans before a final plat may be considered for approval. Construction of any portion of the Public Infrastructure shall not be initiated until a pre- construction conference that includes a City representative has been held regarding the proposed construction and the City has issued a written notice to proceed, which notice to proceed shall not be unreasonably withheld or delayed. No certificate of occupancy shall be issued until construction of all Public Infrastructure shown thereon shall have been constructed, and thereafter inspected, approved, and accepted by the City. 12.3 Maintenance Bond. For each construction contract for any part of the Public Infrastructure, Developer or Developer’s contractor must execute a maintenance bond in accordance with the applicable City Regulations that guarantees payment of the costs of any repairs which may become necessary to any part of the construction work performed in connection with the Public Infrastructure, arising from defective workmanship or materials used therein, for a full period of one (1) year from the date of final acceptance of the Public Infrastructure constructed under such contract. 12.4 Inspections, Acceptance of Public Infrastructure; Developer’s Remedy. (a) Inspections. Generally. The City shall have the right to inspect, at any time, the construction of all Public Infrastructure necessary to support the proposed Development, including water, sanitary sewer, drainage, streets, electrical, streetlights, and signs. (b) City Approval. The City’s inspections and related approvals shall not release Developer from its responsibility to adequately construct, or ensure the adequate construction of, the Authorized Improvements and Public Infrastructure in accordance with approved engineering plans, construction plans, and other approved plans related to development of the Property. Notwithstanding any provision of this Agreement, it shall not be a breach or violation of this Agreement if the City withholds building permits, certificates of occupancy, or City utility services as to a phase of the Development unless and until Developer has fully met its obligations to provide for the required Public Infrastructure necessary to such phase according to the approved engineering plans and City Regulations, and until such Public Infrastructure has been dedicated to and accepted by the City; provided, however, that the City may issue residential building permits for model homes prior to completion of such Public Infrastructure. Acceptance by the City shall not be unreasonably withheld. (c) Dedication and City Ownership of the Public Infrastructure. From and after the City’s inspection and acceptance of the Public Infrastructure and any other dedications required under this Agreement, such Public Infrastructure, improvements, and dedications shall be owned by the City. The Developer’s sole remedy for nonperformance of this Agreement by the City shall be to seek specific performance pursuant to the terms of this Agreement. Page 80 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 21 (d) Approval of Plats/Plans. Approval by the City, the City’s Engineer, or other City employee or representative of any plans, designs, or specifications submitted by Developer to the City pursuant to this Agreement, including the Development Standards, or pursuant to the City Regulations shall not constitute or be deemed to be a release of the responsibility and liability of Developer or its engineers, employees, officers, and/or agents for the adequacy, accuracy, and competency of their design and specifications. Further, any such approvals shall not be deemed to be an assumption of such responsibility and liability by the City for any defect in the design and specifications prepared by Developer or Developer’s engineers, or any engineer’s officers, agents, servants, or employees, it being the intent of the Parties that approval by the City’s engineer signifies the City’s approval on only the general design concept of the improvements to be constructed. 12.5 Insurance. Developer or its contractor(s) shall acquire and maintain, during the period of time when any of the Public Infrastructure is under construction (and until the Public Infrastructure has been fully and finally completed and accepted by the City): (a) workers compensation insurance in the amount required by law; and (b) commercial general liability insurance, including personal injury liability, premises operations liability, and contractual liability, covering, but not limited to, the liability assumed under any indemnification provisions of this Agreement, with limits of liability for bodily injury, death and property damage of not less than One Million Dollars ($1,000,000.00). Such insurance shall also cover any and all claims that might arise out of the Public Infrastructure construction contracts, whether by the Developer, a contractor, subcontractor, material man, or otherwise. Coverage must be on a “per occurrence” basis. All such insurance shall: (i) be issued by a carrier that is rated “A-1” or better by AM. Best’s Key Rating Guide and is licensed to do business in the State of Texas; and (ii) name the City as an additional insured and contain a waiver of subrogation endorsement in favor of the City. Upon the execution of Public Infrastructure construction contracts, Developer shall promptly provide to the City certificates of insurance evidencing such insurance coverage together with the declaration of such policies, along with the endorsement naming the City as an additional insured. Each such policy shall provide that, at least 30 days prior to the cancellation, non-renewal, or modification of the policy, the City shall receive written notice of such cancellation, non-renewal, or modification. 12.6 Indemnification and Hold Harmless. DEVELOPER (INCLUDING ANY SUCCESSOR OR ASSIGNEE THEREOF, INCLUDING, WITHOUT LIMITATION, A PURCHASER OF ANY PORTION OF THE PROPERTY) AGREES TO RELEASE, DEFEND, HOLD HARMLESS, AND INDEMNIFY THE CITY FROM AND AGAINST ALL THIRD- PARTY CLAIMS, SUITS, JUDGMENTS, DAMAGES, AND DEMANDS (TOGETHER, “CLAIMS”) AGAINST THE CITY, INCLUDING REASONABLE ATTORNEY’S FEES AND OTHER COSTS, ARISING OUT OF THE NEGLIGENCE OF DEVELOPER IN CONNECTION WITH THE DESIGN OR CONSTRUCTION OF ANY PUBLIC INFRASTRUCTURE, STRUCTURE, OR OTHER FACILITIES OR IMPROVEMENTS THAT ARE REQUIRED OR PERMITTED BY THE CITY REGULATIONS OR ANY OTHER GOVERNING REGULATIONS AND THAT ARE DEDICATED OR OTHERWISE CONVEYED TO THE CITY. 12.7 Private Improvements/Inspections. Houses, buildings, and other private improvements within the Property shall be constructed in accordance with the City Code. Houses and buildings within the Property will be inspected by authorized inspectors (in-house or third party), Page 81 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 22 specializing in testing, inspections and certifications hired by City, who will perform all inspections on such houses and buildings (including residential, commercial and government buildings). SECTION 13 ADDITIONAL PROVISIONS 13.1 Recitals. The recitals contained in this Agreement: (a) are true and correct as of the Effective Date; (b) form the basis upon which the Parties negotiated and entered into this Agreement; and (c) reflect the final intent of the Parties with regard to the subject matter of this Agreement. In the event it becomes necessary to interpret any provision of this Agreement, the intent of the Parties, as evidenced by the recitals, shall be taken into consideration and, to the maximum extent possible, given full effect. The Parties have relied upon the recitals as part of the consideration for entering into this Agreement and, but for the intent of the Parties reflected by the recitals, would not have entered into this Agreement. 13.2 Notices. Any notice, submittal, payment, or instrument required or permitted by this Agreement to be given or delivered to any Party shall be deemed to have been received when personally delivered or 72 hours following deposit of the same in any United States Post Office, registered or certified mail, postage prepaid, addressed as follows: To the City: City of Huntsville, Texas Attn: City Manager 1212 Avenue M Huntsville, Texas 77340 With a copy to: Leonard V. Schneider Liles Parker PLLC 2261 Northpark Drive, Suite 445 Kingwood, TX 77339 Page 82 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 23 To Developer: PHD-Huntsville 34, LP Attn: Mr. Paul Garza 26207 Park Ivy Lane Katy, Texas 77365 With a copy to: Timothy G. Green Coats Rose, P.C. 9 Greenway Plaza, Suite 1000 Houston, Texas 77046 Any Party may change its address or addresses for delivery of notice by delivering written notice of such change of address to the other Party. 13.3 Interpretation. The Parties acknowledge that each has been actively involved in negotiating this Agreement. Accordingly, the rule of construction that any ambiguities are to be resolved against the drafting Party will not apply to interpreting this Agreement. In the event of any dispute over the meaning or application of any provision of this Agreement, the provision will be interpreted fairly and reasonably and neither more strongly for nor against any Party, regardless of which Party originally drafted the provision. 13.4 Time. In this Agreement, time is of the essence and compliance with the times for performance herein is necessary and required. 13.5 Authority and Enforceability. The City represents and warrants that this Agreement has been approved by official action of the City Council in accordance with all applicable public notice requirements (including, but not limited to, notices required by the Texas Open Meetings Act) and that the individual executing this Agreement on behalf of the City has been and is duly authorized to do so. Developer represents and warrants that this Agreement has been approved by appropriate action of Developer, and that each individual executing this Agreement on behalf of Developer has been and is duly authorized to do so. Each Party respectively acknowledges and agrees that this Agreement is binding upon such Party and is enforceable against such Party, in accordance with its terms and conditions and to the extent provided by law. 13.6 Severability. This Agreement shall not be modified or amended except in writing signed by the Parties. If any provision of this Agreement is determined by a court of competent jurisdiction to be unenforceable for any reason, then: (a) such unenforceable provision shall be deleted from this Agreement; (b) the unenforceable provision shall, to the extent possible and upon mutual agreement of the Parties, be rewritten to be enforceable and to give effect to the intent of the Parties; and (c) the remainder of this Agreement shall remain in full force and effect and shall be interpreted to give effect to the intent of the Parties. 13.7 Applicable Law; Venue. This Agreement is entered into pursuant to and is to be construed and enforced in accordance with, the laws of the State of Texas, and all obligations of the Parties are performable in Walker County. Exclusive venue for any action related to, arising out of, or brought in connection with this Agreement shall be in the Walker County State District Court. Page 83 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 24 13.8 Non-Waiver. Any failure by a Party to insist upon strict performance by the other Party of any material provision of this Agreement shall not be deemed a waiver thereof, and the Party shall have the right at any time thereafter to insist upon strict performance of any and all provisions of this Agreement. No provision of this Agreement may be waived except in writing signed by the Party waiving such provision. Any waiver shall be limited to the specific purposes for which it is given. No waiver by any Party of any term or condition of this Agreement shall be deemed or construed to be a waiver of any other term or condition or subsequent waiver of the same term or condition. 13.9 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 13.10 Exhibits. The following exhibits are attached to this Agreement and are incorporated herein for all purposes: Exhibit A Metes-and-Bounds Description of the Property Exhibit B Depiction of the Property Exhibit C Authorized Improvements and Estimated Costs Exhibit D Concept Plan Exhibit E Home Buyer Disclosure Program Exhibit F Landowner Agreement (including attached Exhibits I, II, and III) Exhibit G Certification for Payment Form Exhibit H Enhanced Subdivision Amenities. 13.11 Force Majeure. Each Party shall use good faith, due diligence, and reasonable care in the performance of its respective obligations under this Agreement, and time shall be of the essence in such performance; however, in the event a Party is unable, due to Force Majeure, to perform its obligations under this Agreement, then the obligations affected by the Force Majeure shall be temporarily suspended. Within thirty (30) days after the occurrence of a Force Majeure, the Party claiming the right to temporarily suspend its performance shall give Notice to all Parties, including a detailed explanation of the Force Majeure and a description of the action that will be taken to remedy the Force Majeure and resume full performance at the earliest possible time. 13.12 Complete Agreement. This Agreement embodies the entire Agreement between the Parties and cannot be varied or terminated except as set forth in this Agreement, or by written agreement of the City and Developer expressly amending the terms of this Agreement. 13.13 Consideration. This Agreement is executed by the Parties without coercion or duress and for substantial consideration, the sufficiency of which is hereby acknowledged. 13.14 Further Documents. Each Party shall, upon request of the other Party, execute and deliver such further documents and perform such further acts as may reasonably be requested to effectuate the terms of this Agreement and achieve the intent of the Parties. 13.15 Employment of Undocumented Workers. During the term of this Agreement, Developer agrees not to knowingly employ any undocumented workers and if convicted of a violation under 8 U.S.C. Page 84 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 25 Section 1324a (f), Developer shall repay the amount of any Reimbursement Payment or other funds received by Developer from City from the date of this Agreement to the date of such violation within 120 days after the date Developer is notified by City of such violation, plus interest at the rate of 4% compounded annually from the date of violation until paid. Developer is not liable for a violation of this section by a subsidiary, affiliate, or franchisee of Developer or by a person with whom Developer contracts. 13.16 Boycott Israel. Developer verifies that the Developer (including any wholly owned subsidiary, majority-owned subsidiary, parent company, or affiliate of the Developer) does not Boycott Israel and agrees that during the term of this Agreement (Contract as applicable) will not Boycott Israel as that term is defined in Texas Government Code Section 808.001, as amended. 13.17 Verification Pursuant to Chapters 2252 and 2270 of the Texas Government Code. As of the Effective Date, the Developer represents that, to the extent this Agreement constitutes a “governmental contract” within the meaning of Section 2252.151 of the Texas Government Code, as amended, solely for purposes of compliance with Chapter 2252 of the Texas Government Code, and except to the extent otherwise required or permitted by or under applicable federal law, neither Developer nor any wholly owned subsidiary, majority-owned subsidiary, parent company or affiliate of the Owner is a company listed by the Texas Comptroller of Public Accounts under Sections 2270.0201 (as enacted by Acts 2017, 85th Leg., Ch. 96, Senate Bill 253) or 2252.153 of the Texas Government Code. 13.18 Form 1295 Certificate of Interested Parties. Prior to its execution of this Agreement, Developer agrees to file with the City pursuant to Texas Government Code '2252.908 a signed and completed Texas Ethics Commission ("TEC") Form 1295 and a certification of filing with TEC. [SIGNATURE PAGES FOLLOW, AND THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] Page 85 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 26 EXECUTED BY THE PARTIES TO BE EFFECTIVE ON THE EFFECTIVE DATE: CITY OF HUNTSVILLE, TEXAS By: Name: Title: Mayor Date: ATTEST: By: Name: Title: City Secretary Date: APPROVED AS TO FORM: Name: STATE OF TEXAS § § COUNTY OF WALKER § This instrument was acknowledged before me on the ____ day of ________________, 2022 by _________________________, the Mayor of the City of Huntsville, Texas, on behalf of the City. (SEAL) Notary Public, State of Texas Page 86 of 149 PHD Draft 8-3-22 017867.000001\4865-5999-6681.v8 Page 27 DEVELOPER: PHD-HUNTSVILLE 34, LP A Texas Limited Partnership By: CBA Strategic Fund II G.P. Its General Partner By: Name: Its: Date: STATE OF TEXAS § § COUNTY OF WALKER § This instrument was acknowledged before me on the day of , 2022 by , , of CBA Strategic Fund II G.P., general partner of PHD-Huntsville 34, LP, a Texas limited partnership and on behalf of such limited partnership. (SEAL) Notary Public, State of Texas Page 87 of 149 017867.000001\4865-5999-6681.v8 Page 28 Exhibit A Metes-and-Bounds Description of The Property H.E. McADAMS & SON SURVEYING, INC. Registered Professional Land Surveyors P.O. Box 5047, Huntsville, Texas 77342 TBPELS Firm No. 10194425 THE STATE OF TEXAS § COUNTY OF WALKER § I, Harold E. McAdams, Registered Professional Land Surveyor No. 2005, do hereby state that the following field notes represent a survey made on the ground of the following described tract or parcel of land located in Walker County, Texas. Coordinates, bearings, distances, and areas surveyed herein are Grid N.A.D. 1983 (1993), Texas Central Zone referenced to the City of Huntsville Mapping Control Network and is based on the position of Control Point 7187 having published coordinates of N= 10,256,115.190 feet, E= 3,786,890.283 feet, and G.P.S. observations. Distances herein may be converted to Geodetic Horizontal (surface) by dividing by a Combined Scale Factor of 0.99988. Being 33.22 acres of land, situated in the City of Huntsville, LEWIS COX LEAGUE, Abstract No. 13, Walker County, Texas, and being part of a called 33.49-acre tract described as 28.31 acre and 10.05-acre tracts save and except 3.74 acre and 1.13-acre tracts in a Deed from James B. Hall Trust to James L. Hall Trust, et al dated October 25, 2016, and recorded in Volume 1259, page 633, Official Public Records of Walker County, Texas, said 33.22 acres being more definitely described as follows: BEGINNING at the northwest comer of said Hall Trust 33.49 acres and the northeast comer of a called 251.78-acre tract (51% interest) described as Tract II in a Deed from Thomas Carroll Cole, Jr., et al to Thomas Carroll Cole, Jr. and Jan Carroll Cole dated April 16, 1987, and recorded in Volume 42, page 5, Official Public Records, same 251.78-acre tract being described as 49% interest in a Deed: from Margaret Thomason Cole to Thomas Carroll Cole, Jr. and Jan Carroll Cole dated April 23, 1987, and recorded in Volume 42, page 9, Official Public Records in a south line of a called 515-acre tract described in a Deed from Ed. H. Cunningham, et al to John Ireland, Governor of the State of Texas and his successors (now being T.D.C.J. Institutional Division "Wynne Farm") dated June 23, 1883, and recorded in Page 88 of 149 017867.000001\4865-5999-6681.v8 Page 29 Volume Y, page 181, Deed Records of Walker County, set a 5/8" iron rod with yellow plastic cap stamped "H.E. McAdams RPLS 2005" having coordinates of N= 10,257,920.90 feet and E= 3,787,525.41 feet for comer from which a 3" diameter concrete monument found bears N O1 °24'48"W- 1.44 feet and a 4"x4" concrete monument stamped "TPL" found for a southwest comer of said the State of Texas 515 acres bears S 87°26'52" W- 1215.30 feet; THENCE N 87°26'52"E, with the common boundary of said Hall Trust 33.49 acre and State of Texas 515 acre tracts, at 782.26 feet pass the common comer of said 28.31 and I0.05 acre tracts, from the said point found a 3" diameter concrete monument S 01°39'E- 1.20 feet, continuing a total distance of 1107.25 feet to the northeast comer of said Hall Trust 33.49 acres and the northwest comer of a called 34.499-acre tract described in a Deed from Thomason Family Trust to Amstad Development, LLC dated June 14, 2018, and recorded in Volume 1331, page 683, Official Public Records, a point for comer from which found a 5/8" iron rod with plastic cap stamped "Johnson Incorporate" S 01°54'40" E- 0.79 feet and a concrete monument with broken top bears N 87°26'52" E- 1761.56 feet; THENCE S 01°54'40"E, with the common boundary of said Hall Trust 33.49 acre and Amstad Development 34.499 acre tracts, a distance of 1163.19 feet to their common comer and the northeast comer of a called 3.74-acre tract (out said 33.49 acres) awarded to the State of Texas described in an Agreed Judgment styled The State of Texas v James L. Hall Trustee, et al dated April 28, 2008, and recorded in Volume 873, page 74, Official Public Records in a northwest right- of-way line of State Highway No. 30, found a 3.5" diameter Texas Department of Transportation (hereinafter referred to as TXDOT) concrete monument with brass disc stamped "850+o2.40" for comer; THENCE S 76°19'15"W, with the southeast line of said Hall Trust and the northwest right- of-way line of State Highway 30, a distance of 326.22 feet to an angle point in said line, found a 3.5" diameter TXDOT concrete monument with brass disc stamped "846+86.00"; THENCE S 71°l 5'07"W, continuing with the southeast line of said Hall Trust and the northwest right-of-way line of State Highway 30, at 512.12 feet pass a 3.5" diameter TXDOT concrete monument with brass disc stamped "841+90.93" found for reference, continuing a total distance of 836.35 feet to the southwest corner of said Hall Trust 33.49 acres and the southeast corner of said Cole 251.78 acre tract, found a 3.5" diameter TXDOT concrete monument with brass disc stamped "838+68.58" for comer; Page 89 of 149 017867.000001\4865-5999-6681.v8 Page 30 THENCE N O1°24'48"W, with the common boundary of said Hall Trust and Cole tracts, a distance of 1459.64 feet to the POINT OF BEGINNING. Page 90 of 149 017867.000001\4865-5999-6681.v8 Page 31 Exhibit B Depiction of the Property Page 91 of 149 017867.000001\4865-5999-6681.v8 Page 32 Exhibit C Estimated Costs and Authorized Improvement Costs Hard Costs Paving and Grading 1,175,727$ 1,175,727$ Earthwork (est. 80% eligible)571,440 457,152 Storm Drainage 487,425 487,425 Water Utility 570,900 570,900 Water Utility - Extension 199,100 199,100 Sanitary Utility 645,450 645,450 SWPPP 56,600 56,600 Miscellaneous 16,600 16,600 Dry Utilities 500,500 - Park & Play Pavilion - Amenity & Landscaping 1,230,710 1,230,710 Contingency (20% of hard costs)1,090,890 967,933 Subtotal 6,545,343$ 5,807,597$ Soft Costs Performance Bond 55,849$ -$ Maintenance Bond 18,616 - Engineering Services 312,680 312,680 Other Engineering and Professional Services 75,000 75,000 Landscape & Design 65,000 65,000 Project Management 523,628 232,304 Capitalized Interest on Loan 300,000 - Capital Placement Fee 37,500 - Loan and Closing Costs 250,000 - PID Formation Legal and Consulting 295,000 295,000 Subtotal 1,933,272$ 979,984$ Land Land Value of Park Area & Pond Area 1,245,750$ 450,000$ Subtotal 1,245,750$ 450,000$ Total 9,724,365$ 7,237,581$ Source: April 4, 2022 developer cost estimates (2022). Footnotes: (1) To the extent permitted by Texas Local Government Code. Preliminary estimates are in 2022 dollars and are likely to increase over time due to inflation. Assumes 100% of paving, grading, water, wastewater, storm drainage, amenity and landscaping, and 80% of earthwork is for publicly maintained improvements and eligible for PID financing. $2.8 million in City Lift Station costs to be financed by City. Description Total Estimated Costs Eligible Improvements For PID Financing (1) Page 92 of 149 017867.000001\4865-5999-6681.v8 Page 33 Exhibit D Concept Plan Page 93 of 149 017867.000001\4865-5999-6681.v8 Page 34 Exhibit E Home Buyer Disclosure Program The Developer (as defined in the Service and Assessment Plan) for the Reserves of Huntsville Public Improvement District (the “PID”) shall facilitate notice to prospective homebuyers in accordance with the following minimum requirements: 1. Record notice of the PID in the appropriate land records for the Property. 2. Require homebuilders to attach the Recorded Notice of the Authorization and Establishment of the PID and the final Assessment Roll for such Assessed Parcel (or if the Assessment Roll is not available for such Assessed Parcel, then a schedule showing the maximum 30-year payment for such Assessed Parcel) in an addendum to each residential homebuyer’s contract on brightly colored paper. 3. Collect a copy of the addendum signed by each buyer from homebuilders and provide to the City, upon City’s request. 4. Require signage indicating that the Property for sale is located in a special assessment district and require that such signage be located in conspicuous places in all model homes. 5. Prepare and provide to homebuilders an overview of the existence and effect of the PID for those homebuilders to include in each sales packet of information that it provides to prospective homebuyers. 6. Notify homebuilders who estimate monthly ownership costs of the requirement that they must include special assessments in estimated Property taxes. 7. Notify Settlement Companies through the homebuilders or cause the homebuilders to notify settlement companies that they are required to include special taxes on HUD 1 forms and include in total estimated taxes for the purpose of setting up tax escrows. 8. Include notice of the PID in the homeowner association documents in conspicuous bold font. The Developer shall regularly monitor the implementation of this disclosure program and shall take appropriate action to require these notices to be provided when one of them discovers that any requirement is not being complied with. Page 94 of 149 017867.000001\4865-5999-6681.v8 Page 35 Exhibit F Landowner Agreement (including attached Exhibits I, II, and III) LANDOWNER AGREEMENT This LANDOWNER AGREEMENT (the “Agreement”) is entered into by the City of Huntsville (the “City”), a home rule city, and , a Texas (the “Landowner”). RECITALS: WHEREAS, Landowner owns the Assessed Parcels described by a metes-and-bounds description attached as Exhibit I to this Agreement, which is incorporated herein for all purposes, and which Assessed Parcels comprise all of the non-exempt, privately-owned land described in Exhibit I (the “Landowner Parcel”), which is within the Reserves of Huntsville Public Improvement District (the “District”) in the City; and WHEREAS, the City Council has adopted an assessment ordinance for the Authorized Improvements (including all exhibits and attachments thereto, the “Assessment Ordinance”) and the SAP, which is included as Exhibit “A” to the Assessment Ordinance (the “SAP”) and which is incorporated herein for all purposes, and, further, the City Council has levied an assessment on each Assessed Parcel in the District (as identified in the SAP) that will be pledged to pay for certain infrastructure improvements and to pay the costs of constructing the Authorized Improvements that will benefit the Assessed Property (as defined in the SAP); and WHEREAS, the Covenants, Conditions and Restrictions attached to this Agreement as Exhibit II, which is incorporated herein for all purposes, include the statutory notification required by Texas Property Code, Section 5.014, as amended, to be provided to the purchaser by the seller of residential property located in a public improvement district established under Chapter 372 of the Texas Local Government Code, as amended (the “PID Act”). NOW, THEREFORE, for and in consideration of the mutual promises, covenants, obligations and benefits hereinafter set forth, the City and Landowner hereby contract, covenant, and agree as follows: DEFINITIONS; AFFIRMATION OF RECITALS Definitions. Capitalized terms used but not defined herein (including each exhibit hereto) shall have the meanings ascribed to them in the SAP. Affirmation of Recitals. The findings set forth in the Recitals of this Agreement are hereby incorporated as the official findings of the City Council. Page 95 of 149 017867.000001\4865-5999-6681.v8 Page 36 I. AGREEMENTS OF LANDOWNER Affirmation and Acceptance of Agreements and Findings of Benefit. Landowner hereby ratifies, confirms, accepts, agrees to, and approves: (i) the creation and boundaries of the District, and the boundaries of the Landowner’s Parcel which are located within the District, all as shown on Exhibit I, and the location and development of the Authorized Improvements on the Landowner Parcel and on the property within the District; (ii) the determinations and findings as to the benefits by the City Council in the SAP and the Assessment Ordinance; and (iii) the Assessment Ordinance and the SAP. B. Acceptance and Approval of Assessments and Lien on Property. Landowner consents to, agrees to, acknowledges, and accepts the following: (i) each Assessment levied by the PID on the Landowner’s Parcel within the District, as shown on the assessment roll attached as Appendix _ to the SAP (the “Assessment Roll”); (ii) the Authorized Improvements specially benefit the District, and the Landowner’s Parcel, in an amount in excess of the Assessment levied on the Landowner’s Parcel within the District, as such Assessment is shown on the Assessment Roll; (iii) each Assessment is final, conclusive, and binding upon Landowner and any subsequent owner of the Landowner’s Parcel, regardless of whether such landowner may be required to prepay a portion of, or the entirety of, such Assessment upon the occurrence of a mandatory prepayment event as provided in the SAP; (iv) the obligation to pay the Assessment levied on the Landowner’s Parcel owned by a landowner when due and in the amount required by and stated in the SAP and the Assessment Ordinance; (v) each Assessment or reassessment, with interest, the expense of collection, and reasonable attorney’s fees, if incurred, is a first and prior lien against the Landowner’s Parcel, superior to all other liens and monetary claims except liens or monetary claims for state, county, school district, or municipal ad valorem taxes, and is a personal liability of and charge against the owner of the Landowner’s Parcel regardless of whether such owner is named; (vi) the Assessment lien on the Landowner’s Parcel is a lien and covenant that runs with the land and is effective from the date of the Assessment Ordinance and continues Page 96 of 149 017867.000001\4865-5999-6681.v8 Page 37 until the Assessment is paid and may be enforced by the governing body of the City in the same manner that an ad valorem tax lien against real property may be enforced by the City; Page 97 of 149 017867.000001\4865-5999-6681.v8 Page 38 (vii) delinquent installments of the Assessment shall incur and accrue interest, penalties, and attorney’s fees as provided in the PID Act; (viii) the owner of a Landowner’s Parcel may pay at any time the entire Assessment, with interest that has accrued on the Assessment, on any parcel in the Landowner’s Parcel; (ix) the Annual Installments of the Assessments (as defined in the SAP and Assessment Roll) may be adjusted, decreased and extended; and, the assessed parties shall be obligated to pay their respective revised amounts of the annual installments, when due, and without the necessity of further action, assessments or reassessments by the City, the same as though they were expressly set forth herein; and (x) Landowner has received, or hereby waives, all notices required to be provided to it under Texas law, including the PID Act, prior to the Effective Date (defined herein). C. Mandatory Prepayment of Assessments. Landowner agrees and acknowledges that Landowner or subsequent landowners may have an obligation to prepay an Assessment upon the occurrence of a mandatory prepayment event, at the sole discretion of the City and as provided in the Service and Assessment Plan, as amended or updated. D. Notice of Assessments. Landowner further agrees as follows: (i) the Covenants, Conditions and Restrictions attached hereto as Exhibit II shall be terms, conditions and provisions running with the Landowner’s Parcel and shall be recorded (the contents of which shall be consistent with the Assessment Ordinance and the SAP as reasonably determined by the City) in the records of the County Clerk of Walker County, as a lien and encumbrance against such Landowner’s Parcel, and Landowner hereby authorizes the City to so record such documents against the Landowner’s Parcel owned by Landowner; (ii) reference to the Covenants, Conditions and Restrictions attached hereto as Exhibit II shall be included on all recordable subdivision plats and such plats shall be recorded in the real property records of Walker County, Texas; (iii) in the event of any subdivision, sale, transfer or other conveyance by Landowner of the right, title or interest of Landowner in the Landowner’s Parcel or any part thereof, the Landowner’s Parcel, or any such part thereof, shall continue to be bound by all of the terms, conditions and provisions of such Covenants, Conditions and Restrictions and any purchaser, transferee or other subsequent owner shall take such Landowner’s Parcel subject to all of the terms, conditions and provisions of such Covenants, Conditions and Restrictions; and Page 98 of 149 017867.000001\4865-5999-6681.v8 Page 39 (iv) Landowner shall comply with and shall contractually obligate (and promptly provide written evidence of such contractual provisions to the City) any party who purchases any Landowner’s Parcel owned by Landowner, or any portion thereof, for the purpose of constructing residential properties that are eligible for “homestead” designations under State law, to comply with, the Homebuyer Education Program described on Exhibit III to this Agreement. Such compliance obligation shall terminate as to each Lot (as defined in the SAP) if, and when, (i) a final certificate of occupancy for a residential unit on such Lot is issued by the City, and (ii) there is a sale of a Lot to an individual homebuyer, it being the intent of the undersigned that the Homebuyer Education Program shall apply only to a commercial builder who is in the business of constructing and/or selling residences to individual home buyers (a “Builder”) but not to subsequent sales of such residence and Lot by an individual home buyer after the initial sale by a Builder. Notwithstanding the provisions of this Section, upon Landowner’s request and the City’s consent, in the City’s sole and absolute discretion, the Covenants, Conditions and Restrictions may be included with other written restrictions running with the land on property within the District, provided they contain all the material provisions and provide the same material notice to prospective property owners as does the document attached as Exhibit II II. OWNERSHIP AND CONSTRUCTION OF AUTHORIZED IMPROVEMENTS A. Ownership and Transfer of Authorized Improvements. Landowner acknowledges that all of the Authorized Improvements and the land (or easements, as applicable) needed therefor shall be owned by the City as constructed and/or conveyed to the City and Landowner will execute such conveyances and/or dedications of public rights of way and easements as may be reasonably required to evidence such ownership, as generally described on the current plats of the property within the District. B. Grant of Easement and License, Construction of Authorized Improvements. (i) Any subsequent owner of the Landowner’s Parcel shall, upon the request of the City or Developer, grant and convey to the City or Developer and its contractors, materialmen and workmen a temporary license and/or easement, as appropriate, to construct the Authorized Improvements on the property within the District, to stage on the property within the District construction trailers, building materials and equipment to be used in connection with such construction of the Authorized Improvements, and to provide for passage and use over and across parts of the property within the District as shall be reasonably necessary during the construction of the Authorized Improvements. Any subsequent owner of the Landowner’s Parcel may require that each contractor constructing the Authorized Improvements cause such owner of the Landowner’s Parcel to be indemnified and/or named as an additional insured under liability insurance reasonably acceptable to such owner of the Landowner’s Parcel. The right to use and enjoy any easement and license provided above shall continue until the construction of the Authorized Improvements is complete; provided, however, any such license or easement shall Page 99 of 149 017867.000001\4865-5999-6681.v8 Page 40 automatically terminate upon the recording of the final plat for the Landowner’s Parcel in the real property records of Walker County, Texas. Page 100 of 149 017867.000001\4865-5999-6681.v8 Page 41 (ii) Landowner hereby agrees that any right or condition imposed by the Improvement Agreement, or other agreement, with respect to the Assessment has been satisfied, and that Landowner shall not have any rights or remedies against the City under the Improvement Agreement, or under any law or principles of equity concerning the Assessments, with respect to the formation of the District, approval of the SAP, and/or the City’s levy and collection of the Assessments. III. COVENANTS AND WARRANTIES; MISCELLANEOUS A. Special Covenants and Warranties of Landowner. Landowner represents and warrants to the City as follows: (i) Landowner is duly organized, validly existing and as applicable, in good standing under the laws of the state of its organization and has the full right, power and authority to enter into this Agreement, and to perform all the obligations required to be performed by Landowner hereunder. (ii) This Agreement has been duly and validly executed and delivered by, and on behalf of, Landowner and, assuming the due authorization, execution, and delivery thereof by and on behalf of the City and Landowner, constitutes a valid, binding and enforceable obligation of such party enforceable in accordance with its terms. This representation and warranty is qualified to the extent the enforceability of this Agreement may be limited by applicable bankruptcy, insolvency, moratorium, reorganization or other similar laws of general application affecting the rights of creditors in general. (iii) `Neither the execution and delivery hereof, nor the taking of any actions contemplated hereby, will conflict with or result in a breach of any of the provisions of, or constitute a default, event of default or event creating a right of acceleration, termination or cancellation of any obligation under, any instrument, note, mortgage, contract, judgment, order, award, decree or other agreement or restriction to which Landowner is a party, or by which Landowner or the Landowner’s Parcel is otherwise bound. (iv) Landowner is, subject to all matters of record in the Walker County, Texas Real Property Records, the sole owner of the Landowner’s Parcel. (v) The Landowner’s Parcel owned by Landowner is not subject to, or encumbered by, any covenant, lien, encumbrance or agreement which would prohibit (i) the creation of the District, (ii) the levy of the Assessments, or (iii) the construction of the Authorized Improvements on those portions of the property within the District which are to be owned by the City, as generally described on the current plats of the property within the District (or, if subject to any such prohibition, the approval or consent of all necessary parties thereto has been obtained). Page 101 of 149 017867.000001\4865-5999-6681.v8 Page 42 (vi) Landowner covenants and agrees to execute any and all documents necessary, appropriate or incidental to the purposes of this Agreement, as long as such documents are consistent with this Agreement and do not create additional liability of any type to, or reduce the rights of, such Landowner by virtue of execution thereof. B. Waiver of Claims Concerning Authorized Improvements. Landowner, with full knowledge of the provisions, and the rights thereof pursuant to such provisions, of applicable law, waives any claims against the City and its successors, assigns and agents, pertaining to the installation of the Authorized Improvements. C. Notices. Any notice or other communication to be given to the City or Landowner under this Agreement shall be given by delivering the same in writing to: To the City: City of Huntsville Attn: , City Manager Huntsville, Texas With a copy to: To the Developer: With a copy to: Any notice sent under this Agreement (except as otherwise expressly required) shall be written and mailed or sent by electronic or facsimile transmission confirmed by mailing written confirmation at substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of the recipient at the address set forth herein. Each recipient may change its address by written notice in accordance with this Section. Any communication addressed and mailed in accordance with this provision shall be deemed to be given when so mailed, any notice so sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is acknowledged or otherwise validly confirmed, Page 102 of 149 017867.000001\4865-5999-6681.v8 Page 43 and any communication so delivered in person shall be deemed to be given when receipted for, or actually received by, the addressee. Page 103 of 149 017867.000001\4865-5999-6681.v8 Page 44 D. Parties in Interest. This Agreement is made solely for the benefit of the City and Landowner and is not assignable, except, in the case of Landowner, in connection with the sale or disposition of all or substantially all of the parcels which constitute the Landowner’s Parcel. However, the Parties expressly agree and acknowledge that the City, Landowner, each current owner of any parcel which constitutes the Landowner’s Parcel, and the holders of or trustee for any bonds secured by PID Assessment revenues of the City or any part thereof to finance the costs of the Authorized Improvements, are express beneficiaries of this Agreement and shall be entitled to pursue any and all remedies at law or in equity to enforce the obligations of the Parties hereto. This Agreement shall be recorded in the real property records of Walker County, Texas. E. Amendments. This Agreement may be amended only by written instrument executed by the City and Landowner. No termination or amendment shall be effective until a written instrument setting forth the terms thereof has been executed by the then-current owners of the property within the District and recorded in the Real Property Records of Walker County, Texas. F. Effective Date. This Agreement shall become and be effective upon the date of final execution by the latter of the City and Landowner (the “Effective Date”) and shall be valid and enforceable on said date and thereafter. G. Estoppels. Within 10 days after written request from a Party, the other Party shall provide a written certification, indicating whether this Agreement remains in effect as to the Landowner’s Parcel, and whether any party is then in default hereunder. H. Termination. This Agreement shall terminate and be of no further force and effect as to the Landowner’s Parcel upon payment in full of the Assessment(s) against such Landowner’s Parcel. [Signature pages to follow] Page 104 of 149 017867.000001\4865-5999-6681.v8 Page 45 EXECUTED by the City and Landowner on the respective dates stated below. Date: CITY OF HUNTSVILLE, TEXAS By: Mayor STATE OF TEXAS § § COUNTY OF WALKER § This instrument was acknowledged before me on the day of , 20 , by , Mayor of the City of Huntsville, Texas on behalf of said City. Notary Public, State of Texas (SEAL) Name printed or typed: Commission Expires: [Signature Page Landowner Agreement] Page 105 of 149 017867.000001\4865-5999-6681.v8 Page 46 LANDOWNER Date: DEVELOPER: By: Name: Its: Date: STATE OF TEXAS § § COUNTY OF WALKER § This instrument was acknowledged before me on the day of , 2022 by , _ , of , on behalf of such . (SEAL) Notary Public, State of Texas [Signature Page Landowner Agreement] Page 106 of 149 017867.000001\4865-5999-6681.v8 Page 40 LANDOWNER AGREEMENT - EXHIBIT I METES AND BOUNDS DESCRIPTION OF LANDOWNER’S PROPERTY H.E. McADAMS & SON SURVEYING, INC. Registered Professional Land Surveyors P.O. Box 5047, Huntsville, Texas 77342 TBPELS Firm No. 10194425 THE STATE OF TEXAS § COUNTY OF WALKER § I, Harold E. McAdams, Registered Professional Land Surveyor No. 2005, do hereby state that the following field notes represent a survey made on the ground of the following described tract or parcel of land located in Walker County, Texas. Coordinates, bearings, distances, and areas surveyed herein are Grid N.A.D. 1983 (1993), Texas Central Zone referenced to the City of Huntsville Mapping Control Network and is based on the position of Control Point 7187 having published coordinates of N= 10,256,115.190 feet, E= 3,786,890.283 feet, and G.P.S. observations. Distances herein may be converted to Geodetic Horizontal (surface) by dividing by a Combined Scale Factor of 0.99988. Being 33.22 acres of land, situated in the City of Huntsville, LEWIS COX LEAGUE, Abstract No. 13, Walker County, Texas, and being part of a called 33.49-acre tract described as 28.31 acre and 10.05-acre tracts save and except 3.74 acre and 1.13-acre tracts in a Deed from James B. Hall Trust to James L. Hall Trust, et al dated October 25, 2016, and recorded in Volume 1259, page 633, Official Public Records of Walker County, Texas, said 33.22 acres being more definitely described as follows: BEGINNING at the northwest comer of said Hall Trust 33.49 acres and the northeast comer of a called 251.78-acre tract (51% interest) described as Tract II in a Deed from Thomas Carroll Cole, Jr., et al to Thomas Carroll Cole, Jr. and Jan Carroll Cole dated Page 107 of 149 017867.000001\4865-5999-6681.v8 Page 41 April 16, 1987, and recorded in Volume 42, page 5, Official Public Records, same 251.78-acre tract being described as 49% interest in a Deed: from Margaret Thomason Cole to Thomas Carroll Cole, Jr. and Jan Carroll Cole dated April 23, 1987, and recorded in Volume 42, page 9, Official Public Records in a south line of a called 515- acre tract described in a Deed from Ed. H. Cunningham, et al to John Ireland, Governor of the State of Texas and his successors (now being T.D.C.J. Institutional Division "Wynne Farm") dated June 23, 1883, and recorded in Volume Y, page 181, Deed Records of Walker County, set a 5/8" iron rod with yellow plastic cap stamped "H.E. McAdams RPLS 2005" having coordinates of N= 10,257,920.90 feet and E= 3,787,525.41 feet for comer from which a 3" diameter concrete monument found bears N O1 °24'48"W- 1.44 feet and a 4"x4" concrete monument stamped "TPL" found for a southwest comer of said the State of Texas 515 acres bears S 87°26'52" W- 1215.30 feet; THENCE N 87°26'52"E, with the common boundary of said Hall Trust 33.49 acre and State of Texas 515 acre tracts, at 782.26 feet pass the common comer of said 28.31 and I0.05 acre tracts, from the said point found a 3" diameter concrete monument S 01°39'E- 1.20 feet, continuing a total distance of 1107.25 feet to the northeast comer of said Hall Trust 33.49 acres and the northwest comer of a called 34.499-acre tract described in a Deed from Thomason Family Trust to Amstad Development, LLC dated June 14, 2018, and recorded in Volume 1331, page 683, Official Public Records, a point for comer from which found a 5/8" iron rod with plastic cap stamped "Johnson Incorporate" S 01°54'40" E- 0.79 feet and a concrete monument with broken top bears N 87°26'52" E- 1761.56 feet; THENCE S 01°54'40"E, with the common boundary of said Hall Trust 33.49 acre and Amstad Development 34.499 acre tracts, a distance of 1163.19 feet to their common comer and the northeast comer of a called 3.74-acre tract (out said 33.49 acres) awarded to the State of Texas described in an Agreed Judgment styled The State of Texas v James L. Hall Trustee, et al dated April 28, 2008, and recorded in Volume 873, page 74, Official Public Records in a northwest right- of-way line of State Highway No. 30, found a 3.5" diameter Texas Department of Transportation (hereinafter referred to as TXDOT) concrete monument with brass disc stamped "850+o2.40" for comer; THENCE S 76°19'15"W, with the southeast line of said Hall Page 108 of 149 017867.000001\4865-5999-6681.v8 Page 42 Trust and the northwest right- of-way line of State Highway 30, a distance of 326.22 feet to an angle point in said line, found a 3.5" diameter TXDOT concrete monument with brass disc stamped "846+86.00"; THENCE S 71°l 5'07"W, continuing with the southeast line of said Hall Trust and the northwest right-of-way line of State Highway 30, at 512.12 feet pass a 3.5" diameter TXDOT concrete monument with brass disc stamped "841+90.93" found for reference, continuing a total distance of 836.35 feet to the southwest corner of said Hall Trust 33.49 acres and the southeast corner of said Cole 251.78 acre tract, found a 3.5" diameter TXDOT concrete monument with brass disc stamped "838+68.58" for comer; THENCE N O1°24'48"W, with the common boundary of said Hall Trust and Cole tracts, a distance of 1459.64 feet to the POINT OF BEGINNING. Page 109 of 149 017867.000001\4865-5999-6681.v8 Page 43 LANDOWNER AGREEMENT - EXHIBIT II DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS This DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS (as it may be amended from time to time, this “Declaration”) is made as of by , a Texas (the “Landowner”). RECITALS: A. Landowner holds record title to that portion of the real property located in Walker County, Texas, which is described in the attached Exhibit I (the “Landowner’s Parcel”). B. The City Council of the City of Huntsville (the “City Council”), upon a petition requesting the establishment of a public improvement district covering the property within the District to be known as the Reserves of Huntsville Public Improvement District (the “District”), submitted by the then current owners of 100% of the appraised value of the taxable real property and 100% of the area of all taxable real property within the area requested to be included in the District created such District, in accordance with the Public Improvement District Assessment Act, Chapter 372, Texas Local Government Code, as amended (the “PID Act”). C. The City Council has adopted an assessment ordinance to levy assessments for certain public improvements (including all exhibits and attachments thereto, the “Assessment Ordinance”) and the SAP included as an exhibit to the Assessment Ordinance (as amended from time to time, the “SAP”), and has levied the assessments (as amended from time to time, the “Assessments”) on property in the District. D. The statutory notification required by Texas Property Code, Section 5.014, as amended, to be provided to the purchaser by the seller of residential property that is located in a public improvement district established under Chapter 372 of the Texas Local Government Code, as amended is incorporated into these Covenants, Conditions and Restrictions. DECLARATIONS: NOW, THEREFORE, Landowner hereby declares that the Landowner’s Parcel is and shall be subject to, and hereby imposes on the Landowner’s Parcel, the following covenants, conditions and restrictions: 1. Acceptance and Approval of Assessments and Lien on Property: (a) Landowner accepts each Assessment levied on the Landowner’s Parcel owned by such Landowner. (b) The Assessment (including any reassessment, the expense of collection, and reasonable attorney’s fees, if incurred) is (a) a first and prior lien (the “Assessment Lien”) against the property assessed, superior to all other liens or claims except for Page 110 of 149 017867.000001\4865-5999-6681.v8 Page 44 liens or claims for state, county, school district or municipality ad valorem property taxes whether now or hereafter payable, and (b) a personal liability of and charge against the owners of the property to the extent of their ownership regardless of whether the owners are named. The Assessment Lien is effective from the date of the Assessment Ordinance until the Assessments are paid and may be enforced by the City in the same manner as an ad valorem property tax levied against real property that may be enforced by the City. The owner of any assessed property may pay, at any time, the entire Assessment levied against any such property. Foreclosure of an ad valorem property tax lien on property within the District will not extinguish the Assessment or any unpaid but not yet due annual installments of the Assessment and will not accelerate the due date for any unpaid and not yet due annual installments of the Assessment. It is the clear intention of all parties to these Declarations of Covenants, Conditions and Restrictions, that the Assessments, including any annual installments of the Assessments (as such annual installments may be adjusted, decreased, or extended), are covenants that run with the Landowner’s Parcel and specifically bind Landowner, and its successors and assigns. In the event of delinquency in the payment of any annual installment of the Assessment, the City is empowered to order institution of an action in district court to foreclose the related Assessment Lien, to enforce personal liability against the owner of the real property for the Assessment, or both. In such action the real property subject to the delinquent Assessment may be sold at judicial foreclosure sale for the amount of such delinquent property taxes and Assessment, plus penalties, interest and costs of collection. 2. Landowner or any subsequent owner of the Landowner’s Parcel waives: (a) any and all defects, irregularities, illegalities or deficiencies in the proceedings establishing the District and levying and collecting the Assessments or the annual installments of the Assessments; (b) any and all notices and time periods provided by the PID Act including, but not limited to, notice of the establishment of the District and notice of public hearings regarding the levy of Assessments by the City Council concerning the Assessments; (c) any and all defects, irregularities, illegalities or deficiencies in, or in the adoption of, the Assessment Ordinance by the City Council; (d) any and all actions and defenses against the adoption or amendment of the SAP, the City’s finding of a ‘special benefit’ pursuant to the PID Act and the SAP, and the levy of the Assessments; and Page 111 of 149 017867.000001\4865-5999-6681.v8 Page 45 (e) any right to object to the legality of any of the Assessments or the SAP or to any of the previous proceedings connected therewith which occurred prior to, or upon, the City Council’s levy of the Assessments. 3. Amendments: This Declaration may be terminated or amended only by a document duly executed and acknowledged by the then-current owner(s) of the Landowner’s Parcel and the City. No such termination or amendment shall be effective until a written instrument setting forth the terms thereof has been executed by the parties by whom approval is required as set forth above and recorded in the real Property Records of Walker County, Texas. 4. Third Party Beneficiary: The City is a third-party beneficiary to this Declaration and may enforce the terms hereof. 5. Notice to Subsequent Purchasers: Upon the sale of a dwelling unit within the District, the purchaser of such property shall be provided a written notice that reads substantially similar to the following: TEXAS PROPERTY CODE SECTION 5.014 NOTICE OF OBLIGATION TO PAY PUBLIC IMPROVEMENT DISTRICT ASSESSMENT TO THE CITY OF HUNTSVILLE, WALKER COUNTY, TEXAS CONCERNING THE PROPERTY AT [Street Address]. As the purchaser of this parcel of real property, you are obligated to pay an assessment to the City of Huntsville, Texas, for improvement projects undertaken by a public improvement district under Chapter 372 of the Texas Local Government Code, as amended. The assessment may be due in periodic installments. The amount of the assessment against your property may be paid in full at any time together with interest to the date of payment. If you do not pay the assessment in full, it will be due and payable in annual installments (including interest and collection costs). More information concerning the amount of the assessment and the due dates of that assessment may be obtained from the City of Huntsville, Huntsville, Texas . Your failure to pay the assessment or the annual installments could result in a lien and in the foreclosure of your property. Signature of Purchaser(s) Date: The seller shall deliver this notice to the purchaser before the effective date of an executory contract binding the purchaser to purchase the property. The notice may be given separately, as part of the contract during negotiations, or as part of any other notice the seller delivers to the purchaser. If the notice is included as part of the executory contract or another notice, the title of the notice prescribed by this section, the references to the street address and date in the notice, and the purchaser’s signature on the notice may be omitted. [Signature Page to Follow] Page 112 of 149 017867.000001\4865-5999-6681.v8 Page 46 EXECUTED by the undersigned on the date set forth below to be effective as of the date first above written. LANDOWNER By: Name Its: STATE OF TEXAS § § COUNTY OF § This instrument was acknowledged before me on the day of , 20 , by in his capacity as of , known to be the person whose name is subscribed to the foregoing instrument, and that he executed the same on behalf of and as the of ._ (SEAL) Notary Public, State of Texas Page 113 of 149 017867.000001\4865-5999-6681.v8 Page 47 LANDOWNER AGREEMENT - EXHIBIT III HOMEBUYER EDUCATION PROGRAM As used in this Exhibit III, the recorded Notice of the Authorization and Establishment of the Reserves of Huntsville Public Improvement District and the Declaration of Covenants, Conditions and Restrictions in Exhibit II of this Agreement are referred to as the “Recorded Notices.” 1. Any Landowner, who is a Builder, shall attach the Recorded Notices and the final Assessment Roll for such Assessed Parcel (or if the Assessment Roll is not available for such Assessed Parcel, then a schedule showing the maximum 30 year payment for such Assessed Parcel) as an addendum to any residential homebuyer’s contract. 2. Any Landowner, who is a Builder, shall provide evidence of compliance with No. 1 above, signed by such residential homebuyer, to the City. 3. Any Landowner, who is a Builder, shall prominently display signage in its model homes, if any, substantially in the form of the Recorded Notices. 4. , Any Landowner, who is a Builder, shall distribute informational brochures about the existence and effect of the District in prospective homebuyer sales packets. 5. Any Landowner, who is a Builder, shall include Assessments in estimated property taxes, if such Builder estimates monthly ownership costs for prospective homebuyers. Page 114 of 149 017867.000001\4865-5999-6681.v8 Page 46 Exhibit G Certification for Payment Form The undersigned is an agent for , a Texas (the “Developer”), and requests payment from the of the Project Fund (as defined in the Indenture) from the City of Huntsville, Texas (the “City”), or Trustee (as defined in the Indenture) in the amount of $ for costs incurred in the establishment, administration, and operation of the Reserves of Huntsville Public Improvement District (the “District”) and for labor, materials, fees, and/or other general costs related to the creation, acquisition, or construction of certain Authorized Improvements related to the District. Unless otherwise defined, any capitalized terms used herein shall have the meanings ascribed to them in the Indenture. In connection to the above referenced payment, the Developer represents and warrants to the City as follows: 1. The undersigned is a duly authorized officer of the Developer, is qualified to execute this payment request form on behalf of the Developer and is knowledgeable as to the matters set forth herein. 2. The payment requested for the below referenced Authorized Improvement(s) has not been the subject of any prior payment request submitted for the same work to the City or, if previously requested, no disbursement was made with respect thereto. 3. The amount listed for the Authorized Improvement(s) below is a true and accurate representation of the Actual Costs associated with the creation, acquisition, or construction of said Authorized Improvement(s); and such costs: (i) are in compliance with the Bond Indenture; and (ii) are consistent with the SAP. 4. The Developer is in compliance with the terms and provisions of the Development Agreement, the Indenture, and the SAP. 5. All conditions set forth in the Bond Indenture for the payment hereby requested have been satisfied. 6. The work with respect to the Authorized Improvement(s) referenced below (or their completed segment, section or portion thereof) has been completed and the City may begin inspection of the Authorized Improvement(s). 7. The Developer agrees to cooperate with the City in conducting its review of the requested payment and agrees to provide additional information and documentation as is reasonably necessary for the City to complete said review. Payments requested are as follows: a. X amount to Person or Account Y for Z goods or services. Page 115 of 149 017867.000001\4865-5999-6681.v8 Page 47 b. Etc. Page 116 of 149 017867.000001\4865-5999-6681.v8 Page 48 As required by the Indenture, the Actual Costs for the Authorized Improvement(s) shall be paid as follows: Authorized Improvement:Amount to be paid from the Project Fund Total Cost of Authorized Improvement Attached hereto, are receipts, purchase orders, Change Orders, and similar instruments which support and validate the above requested payments. Pursuant to the Reserves of Huntsville Development Agreement, after receiving this payment request, the City is authorized to inspect the Authorized Improvement (or completed, section or portion thereof segment) and confirm that said work has been completed in accordance with all applicable governmental laws, rules, and Plans. I hereby declare that the above representations and warranties are true and correct. By: Name: Its: Date: Page 117 of 149 017867.000001\4865-5999-6681.v8 APPROVAL OF REQUEST BY CITY The undersigned is in receipt of the attached Certification for Payment. After reviewing the Certification for Payment, the Certification for Payment is approved in the amount of $ , and the Trustee is directed to disburse the requested payment in said amount from the Account of the Projected Fund, in accordance with the Certification for Payment. The City’s approval of the Certification for Payment shall not have the effect of estopping or preventing the undersigned from asserting claims under the Indenture, the SAP, any other agreement between the parties or that there is a defect in the Authorized Improvement. CITY OF HUNTSVILLE, TEXAS By: Name: Title: Date:___________________ Page 118 of 149 017867.000001\4865-5999-6681.v8 Exhibit H Enhanced Subdivision Amenities Page 119 of 149 017867.000001\4865-5999-6681.v8 Page 120 of 149 017867.000001\4865-5999-6681.v8 Page 121 of 149 017867.000001\4865-5999-6681.v8 Page 122 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 2.c. Agenda Item: Consider approving Resolution 2022-23, a resolution creating "The Reserves of Huntsville" Public Improvement District (PID) in accordance with Chapter 372 of the Texas Local Government Code as amended, to create a public improvement district within the corporate limits of Huntsville. Initiating Department/Presenter: Development Services Presenter: Kevin Byal, Director of Development Services Recommended Motion: Move to approve Resolution 2022-23, a resolution creating "The Reserves of Huntsville" Public Improvement District (PID) in accordance with Chapter 372 of the Texas Local Government Code as amended, to create a public improvement district within the corporate limits of Huntsville. Strategic Initiative: Goal #4, Infrastructure - Ensure the quality of the City utilities, transportation and physical structures so that the City’s core services can be provided in an effective and efficient manner. Discussion: At the December 21, 2021 council meeting, a presentation was given introducing the concept of Public Improvement Districts (PIDs) as a financing mechanism to construct infrastructure in new subdivisions. After receiving the information, the council voted to approve the concept. Subsequently, the developer proceeded with the necessary steps, in accordance with Chapter 372 of the Texas Local Government Code (TLGC), to begin implementing the process of creating the Reserves of Huntsville Public Improvement District. The required steps included the submission of a petition by the developer to create the PID followed by a resolution to set the date for a public hearing to give the public the opportunity to comment on the creation of the PID and then holding that public hearing. At the April 19, 2022 Council meeting, City Council authorized the City Manager to enter into a contract with DTA Public Finance to represent the city in the administration of this and future PIDs. Over the past several months, staff have worked with the developer and DTA to ensure that all statutory elements of TLGC, chapter 372 have been met, as well as ensuring the interests of the city and future residents of the PID are protected. Once the PID is created and the development agreement is executed, bonds may be issued to provide a portion of the funds for infrastructure construction which include, but are not limited to, street and roadway improvements, sidewalks, water, sewer, and drainage to serve the subdivision. Other allowed costs related to improvement of parks and open space, together with any ancillary structures, features or amenities such as trails, playgrounds, walkways, lighting and any similar items located therein are Page 123 of 149 eligible. Additionally, the costs of establishing, administering and operating the District will be included. A Service and Assessment Plan (SAP) will establish reimbursement of the bonds through an annual assessment that is placed on each lot in the PID boundaries to retire the bonds in 30 years. Previous Council Action: December 21, 2021 – City Council voted to approve the concept of creating a Public Improvement District for this specific project. February 1, 2022 – City Council approved resolution 2022-5 setting a public hearing date to solicit public input concerning the creation of Public Improvement District (PID) No. 1 for the Reserves of Huntsville. March 1, 2022 – City Council held a public hearing giving the public an opportunity to comment on the creation of the proposed PID. Financial Implications: There is no financial impact associated with this item. The financial impact of any action the Council considers will be included in the PID assessment. Approvals: Kevin Byal Leonard Schneider Rick Rudometkin Aron Kulhavy Kristy Doll Associated Information: 1. Resolution 2022-23 Creation PID (Reserve of Huntsville) (1) 2. Area Map 3. Huntsville Fiscal Impact Letter 8.5.22 Page 124 of 149 017867.000001\4889-4651-0636.v1 RESOLUTION 2022-23 CREATING THE RESERVES OF HUNTSVILLE PUBLIC IMPROVEMENT DISTRICT IN ACCORDANCE WITH CHAPTER 372 OF THE TEXAS LOCAL GOVERNMENT CODE; PROVIDING FOR FILING WITH COUNTY CLERK; PROVIDING FOR RELATED MATTERS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, The City of Huntsville, Texas (the "City"), is authorized by Chapter 372 of the Texas Local Government Code, as amended (the "Act"), to create a public improvement district within its corporate limits and extraterritorial jurisdiction; and WHEREAS, on January 17, 2022, James L. Hall, as Trustee of the James L. Hall, Trust; Janice C. McCaffety, as Trustee of the Janice C. McCaffety Trust; and Grace E. Scelsi, as Trustee of the Grace E. Scelsi Trust, (collectively, the "Petitioner") filed with the City Secretary for Huntsville, Texas a petition (the "Petition") requesting the establishment of the Reserves of Huntsville Public Improvement District (the “District”), encompassing the approximately 33.22 acres located within the corporate limits of the City and more particularly described by the map and metes and bounds in Exhibit “A” (the “Property”), attached hereto and incorporated herein for all purposes; and WHEREAS, the City Council (“Council”) has investigated and determined that the facts contained in the Petition are true and correct; and WHEREAS, after publishing notice in a newspaper of general circulation in the City and mailing notice of the hearing to the owners of the Property, all as required by and in conformity with the Act, the Council conducted a public hearing on the advisability of the improvements and services on February 1, 2022. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS: Section 1. The findings set forth in the recitals of this Resolution are hereby found to be true and correct. Section 2. The Petition submitted to the City by the Petitioner was filed with the City Secretary and complies with Section 372.005 of the Act. Section 3. Pursuant to the requirements of the Act, including, without limitation, Sections 372.006 and 372.009, the City Council, after considering the Petition and the evidence and testimony presented at the public hearing on March 1, 2022, hereby finds and declares: (a) Advisability of the Authorized Improvements. It is advisable to create the District to provide the Authorized Improvements (as described below). The Authorized Improvements are feasible and desirable and will promote the interests of the City and will confer a special benefit on the Property. (b) General Nature of the Authorized Improvements. The general nature of the public improvements (collectively, the “Authorized Improvements”) may include: (i) design, construction and other allowed costs related to street and roadway improvements, including related sidewalks, drainage, utility relocation, signalization, landscaping, lighting, signage, off-street parking and right-of-way; (ii) design, construction and other allowed costs related to improvement of parks and open space, together with any ancillary structures, features or amenities such as trails, playgrounds, walkways, lighting and any similar items located therein; (iii) design, construction and other allowed costs related to sidewalks and landscaping and hardscaping, fountains, lighting and signage; (iv) design, construction and other allowed costs related to gas, water, wastewater and drainage (including detention) improvements and facilities; (v) design, Page 125 of 149 017867.000001\4889-4651-0636.v1 construction and other allowed costs related to projects similar to those listed in subsections (i) - (iv) above authorized by the Act, including similar off-site projects that provide a benefit to the property within the District; (vi) special supplemental services for improvement and promotion of the district; (vii) payment of costs associated with operating and maintaining the public improvements listed in subparagraphs (i) - (v) above; and (viii) payment of costs associated with developing and financing the public improvements listed in subparagraphs (i) - (v) above, and costs of establishing, administering and operating the District. These Authorized Improvements shall promote the interests of the City and confer a special benefit upon the Property. (b) Estimated Cost of the Authorized Improvements. The estimated cost to design, acquire, and construct the Authorized Improvements, together with bond issuance costs, eligible legal and financial fees, eligible credit enhancement costs and eligible costs incurred in the establishment administration and operation of the District, is $6,500,000. The City will pay none of the costs of the proposed improvements from funds other than such assessments. (c) Boundaries of the District. The District is to include approximately 33.22 acres of land, as described by the map and metes and bounds in Exhibit “A” attached hereto. (d) Method of Assessment. The City shall levy assessments on each parcel within the District in a manner that results in imposing equal shares of the costs on property similarly benefited. All assessments may be paid in full at any time (including interest and principal), and certain assessments may be paid in annual installments (including interest and principal). If an assessment is allowed to be paid in installments, then the installments must be paid in amounts necessary to meet annual costs for those Authorized Improvements financed by the assessment and must continue for a period necessary to retire the indebtedness of those Authorized Improvements (including interest). (e) Management of the District. The District shall be managed by the City, with the assistance of a consultant, who shall, from time to time, advise the City regarding certain operations of the District. (f) Advisory Board. The District shall be managed without the creation of an advisory body. Section 4. The Reserves of Huntsville Public Improvement District is hereby authorized and created as a public improvement district under the Act and in accordance with the findings of the City Council as to the advisability of the Authorized Improvements contained in this Resolution, the nature and the estimated costs of the Authorized Improvements, the boundaries of the District, the method of assessment, and the apportionment of costs as described herein; and the conclusion that the District is needed to fund such Authorized Improvements. Section 5. Notice of this Resolution authorizing the District shall be given by filing a copy of this Resolution with the County Clerk of Walker County, Texas. Section 6. This Resolution shall take effect immediately, as required by law. [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY] Page 126 of 149 017867.000001\4889-4651-0636.v1 PASSED, APPROVED AND ADOPTED on this ____ day of August, 2022 by the City Council of Huntsville, Texas. CITY OF HUNTSVILLE, TEXAS By: ______________________________ Andy Brauninger, Mayor ATTEST: APPROVED AS TO FORM: ________________________________ ________________________________ Kristy Doll, City Secretary Leonard Schneider, City Attorney Page 127 of 149 017867.000001\4889-4651-0636.v1 EXHIBIT “A” Page 128 of 149 017867.000001\4889-4651-0636.v1 Page 129 of 149 017867.000001\4889-4651-0636.v1 Page 130 of 149 CITY OF HUNTSVILLE, TXENGINEERING DEPARTMENT / GIS DIVISION 8 CREATED DATE: 11/29/2021 3400 SH 30 WestHuntsville GIS Division 1 in = 1,000 ft 0 0.2 0.40.1 mi On 8.5 x 11 inch Print On Any Print Size Service Layer Credits: City of Huntsville GIS Division The City of Huntsville, Texas or its employees gives NO warranty, expressed or implied, as to the accuracy, reliability, or completeness of these data. See full GIS Data Disclaimer at: www.huntsvilletx.gov/gis Page 131 of 149 3101 BEE CAVES ROAD CENTRE II BUILDING SUITE 306 AUSTIN, TX 78746 TEL (855) 970-0003 www.launch-dfa.com Arizona | California | Florida | Idaho | Nevada | New Mexico | North Carolina | Texas | Utah | Washington VIA ELECTRONIC MAIL August 5, 2022 Mr. Paul Garza PHD-Huntsville 34, L.P 26207 Park Ivy Lane Katy, TX 77494 Dear Mr. Garza: Per your request, we have prepared an estimate of the anticipated property tax revenues to be generated over the next thirty-year period by The Reserves of Huntsville for each respective taxing jurisdictions. Please feel free to call with any questions. Best, Carter Froelich Managing Principal Page 132 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Taxing District Total Estimated Property Taxes (1)(2)Present Value (3) Huntsville City 4,864,124$ 2,236,865$ Huntsville ISD 16,765,804$ 7,710,090$ Walker County 7,591,196$ 3,490,964$ Walker County Hospital District 1,796,958$ 826,367$ Total 31,018,081$ 14,264,285$ Footnotes: (1)Assumes static property tax rates over the analysis period. See Table I for further details. (3) Discounted at 5%. (2)Figures assume 140 total single family units priced at $295,000. Purchase price and assessed valuation inflated at 2% per annum. Analysis assumes that 70 homes will be sold per year. SeeTable II for further details. Estimate - Actual results may vary Page 133 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table I 2021-2022 Property Tax Rates Taxing District Tax Rate (1) Huntsville City 0.3075 Huntsville ISD 1.0599 Walker County 0.4799 Walker County Hospital District 0.1136 Total 1.9609 Footnotes: (1)Per Walker County Assessor's Office. Estimate - Actual results may vary 5 Page 134 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description Total Present Value (4)2023 2024 2025 Home Absorption (1)140 70 70 - Cumulative Homes 140 70 140 140 Average Home Price (1)(2)295,000$ 300,900$ 306,918$ New Assessed Valuation 41,713,000$ 20,650,000$ 21,063,000$ -$ Tax Rolled Assessed Valuation (3)41,713,000$ 5,162,500$ 15,590,750$ 15,694,000$ Inflation on Existing Assessed Valuation (2)30,198,349$ -$ 103,250$ 417,130$ Cumulative Tax Rolled Assessed Valuation 71,911,349$ 5,162,500$ 20,856,500$ 36,967,630$ Huntsville City 4,864,124$ 2,236,865$ 15,875$ 64,134$ 113,675$ Huntsville ISD 16,765,804$ 7,710,090$ 54,717$ 221,058$ 391,820$ Walker County 7,591,196$ 3,490,964$ 24,775$ 100,090$ 177,408$ Walker County Hospital District 1,796,958$ 826,367$ 5,865$ 23,693$ 41,995$ Total 31,018,081$ 14,264,285$ 101,231$ 408,975$ 724,898$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. (4)Discounted at 5% Estimate - Actual results may vary 6 Page 135 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description 2026 2027 2028 2029 2030 Home Absorption (1)----- Cumulative Homes 140 140 140 140 140 Average Home Price (1)(2)313,056$ 319,317$ 325,704$ 332,218$ 338,862$ New Assessed Valuation -$ -$ -$ -$ -$ Tax Rolled Assessed Valuation (3)5,265,750$ -$ -$ -$ -$ Inflation on Existing Assessed Valuation (2)739,353$ 859,455$ 876,644$ 894,177$ 912,060$ Cumulative Tax Rolled Assessed Valuation 42,972,733$ 43,832,187$ 44,708,831$ 45,603,008$ 46,515,068$ Huntsville City 132,141$ 134,784$ 137,480$ 140,229$ 143,034$ Huntsville ISD 455,468$ 464,577$ 473,869$ 483,346$ 493,013$ Walker County 206,226$ 210,351$ 214,558$ 218,849$ 223,226$ Walker County Hospital District 48,817$ 49,793$ 50,789$ 51,805$ 52,841$ Total 842,652$ 859,505$ 876,695$ 894,229$ 912,114$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. (4)Discounted at 5% Estimate - Actual results may vary 7 Page 136 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description 2031 2032 2033 2034 2035 Home Absorption (1)----- Cumulative Homes 140 140 140 140 140 Average Home Price (1)(2)345,640$ 352,552$ 359,603$ 366,795$ 374,131$ New Assessed Valuation -$ -$ -$ -$ -$ Tax Rolled Assessed Valuation (3)-$ -$ -$ -$ -$ Inflation on Existing Assessed Valuation (2)930,301$ 948,907$ 967,886$ 987,243$ 1,006,988$ Cumulative Tax Rolled Assessed Valuation 47,445,369$ 48,394,277$ 49,362,162$ 50,349,405$ 51,356,393$ Huntsville City 145,895$ 148,812$ 151,789$ 154,824$ 157,921$ Huntsville ISD 502,873$ 512,931$ 523,190$ 533,653$ 544,326$ Walker County 227,690$ 232,244$ 236,889$ 241,627$ 246,459$ Walker County Hospital District 53,898$ 54,976$ 56,075$ 57,197$ 58,341$ Total 930,356$ 948,963$ 967,943$ 987,301$ 1,007,048$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. (4)Discounted at 5% Estimate - Actual results may vary 8 Page 137 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description 2036 2037 2038 2039 2040 Home Absorption (1)----- Cumulative Homes 140 140 140 140 140 Average Home Price (1)(2)381,614$ 389,246$ 397,031$ 404,972$ 413,071$ New Assessed Valuation -$ -$ -$ -$ -$ Tax Rolled Assessed Valuation (3)-$ -$ -$ -$ -$ Inflation on Existing Assessed Valuation (2)1,027,128$ 1,047,670$ 1,068,624$ 1,089,996$ 1,111,796$ Cumulative Tax Rolled Assessed Valuation 52,383,521$ 53,431,192$ 54,499,816$ 55,589,812$ 56,701,608$ Huntsville City 161,079$ 164,301$ 167,587$ 170,939$ 174,357$ Huntsville ISD 555,213$ 566,317$ 577,644$ 589,196$ 600,980$ Walker County 251,389$ 256,416$ 261,545$ 266,776$ 272,111$ Walker County Hospital District 59,508$ 60,698$ 61,912$ 63,150$ 64,413$ Total 1,027,188$ 1,047,732$ 1,068,687$ 1,090,061$ 1,111,862$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. (4)Discounted at 5% Estimate - Actual results may vary 9 Page 138 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description 2041 2042 2043 2044 2045 Home Absorption (1)----- Cumulative Homes 140 140 140 140 140 Average Home Price (1)(2)421,333$ 429,759$ 438,354$ 447,122$ 456,064$ New Assessed Valuation -$ -$ -$ -$ -$ Tax Rolled Assessed Valuation (3)-$ -$ -$ -$ -$ Inflation on Existing Assessed Valuation (2)1,134,032$ 1,156,713$ 1,179,847$ 1,203,444$ 1,227,513$ Cumulative Tax Rolled Assessed Valuation 57,835,640$ 58,992,353$ 60,172,200$ 61,375,644$ 62,603,157$ Huntsville City 177,845$ 181,401$ 185,030$ 188,730$ 192,505$ Huntsville ISD 613,000$ 625,260$ 637,765$ 650,520$ 663,531$ Walker County 277,553$ 283,104$ 288,766$ 294,542$ 300,433$ Walker County Hospital District 65,701$ 67,015$ 68,356$ 69,723$ 71,117$ Total 1,134,099$ 1,156,781$ 1,179,917$ 1,203,515$ 1,227,585$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. (4)Discounted at 5% Estimate - Actual results may vary 10 Page 139 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description 2046 2047 2048 2049 2050 Home Absorption (1)----- Cumulative Homes 140 140 140 140 140 Average Home Price (1)(2)465,185$ 474,489$ 483,979$ 493,658$ 503,532$ New Assessed Valuation -$ -$ -$ -$ -$ Tax Rolled Assessed Valuation (3)-$ -$ -$ -$ -$ Inflation on Existing Assessed Valuation (2)1,252,063$ 1,277,104$ 1,302,646$ 1,328,699$ 1,355,273$ Cumulative Tax Rolled Assessed Valuation 63,855,220$ 65,132,325$ 66,434,971$ 67,763,670$ 69,118,944$ Huntsville City 196,355$ 200,282$ 204,288$ 208,373$ 212,541$ Huntsville ISD 676,801$ 690,338$ 704,144$ 718,227$ 732,592$ Walker County 306,441$ 312,570$ 318,821$ 325,198$ 331,702$ Walker County Hospital District 72,540$ 73,990$ 75,470$ 76,980$ 78,519$ Total 1,252,137$ 1,277,180$ 1,302,723$ 1,328,778$ 1,355,353$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. (4)Discounted at 5% Estimate - Actual results may vary 11 Page 140 of 149 PHD-Huntsville 34, L.P The Reserves of Huntsville Estimated 30 Year Property Tax Collections Table II 30 Year Property Tax Collections & Assessed Valuation Build-Up Description 2051 2052 Home Absorption (1)-- Cumulative Homes 140 140 Average Home Price (1)(2)513,602$ 523,874$ New Assessed Valuation -$ -$ Tax Rolled Assessed Valuation (3)-$ -$ Inflation on Existing Assessed Valuation (2)1,382,379$ 1,410,026$ Cumulative Tax Rolled Assessed Valuation 70,501,323$ 71,911,349$ Huntsville City 216,792$ 221,127$ Huntsville ISD 747,244$ 762,188$ Walker County 338,336$ 345,103$ Walker County Hospital District 80,090$ 81,691$ Total 1,382,460$ 1,410,110$ Footnotes: (1)Developer estimate. (2)Home sales price and existing assessed valuation assumes a 2% inflation rate. (4)Discounted at 5% (3)For purposes of estimating the assessed valuation increases related to the sales of new homes we have assumed that 25% of the applicable year's sales are placed on the tax rolls in the year of sale; 50% of the year's home sales are placed on the tax roll in year 2 and the remaining 25% are placed on the tax rolls in year 3. Estimate - Actual results may vary 12 Page 141 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 3.a. Agenda Item: Consider directing the City Manager to initiate the process to rename two city streets in honor of James Patton and Linda Pease. Initiating Department/Presenter: City Council Presenter: Deandra (Dee) Mullins, Councilmember Pat Graham, Councilmember Ward 4 Bert Lyle, Councilmember At-Large Position 1 Recommended Motion: Move to direct the City Manager to initiate the process to rename two city streets in honor of James Patton and Linda Pease. Strategic Initiative: Goal #5, Resource Development - Enhance the quality of life for citizens, businesses and visitors by leveraging the human and fiscal resources available to the community. Discussion: In honor of the contributions of James Patton and Linda Pease to the Huntsville community, this request is to initiate the process to rename portions of two City Streets. In addition to the short bio below about Mr. Patton, an article with information about Ms. Pease's contributions is attached. James Patton was a native of Huntsville/Walker County. He attended Huntsville High School and Sam Houston State University. Mr. Patton is known for his 32 years of service as the County Clerk of Walker County and his brilliant memory of the ancestorial history of everyone he ran into. Following his retirement from the county, Mr. Patton was the chairman of the Walker County Historical Commission for 27 years and was the Director of the Gibbs-Powell House for many years. James was pivotal in the planning of General Sam Houston's Birthday Celebration, where individuals who were not from Texas could be ceremonially baptized to become Texans. Mr. Patton never knew a stranger and was loved by everyone. His love for everyone represents the true meaning of “Home Sweet Huntsville.” The 1400 block of 12th Street, located between Avenues N and O, would be renamed in honor of Mr. Patton. There are no properties currently with addresses affected by this proposed change. The 1000 block of Avenue O, located between 10th and 11th Streets and running beside the Wynne Home, would be renamed for Ms. Pease. There are two properties that would be affected by the proposed change. A map of the proposed changes is attached to this item. In order to rename a city street, policy requires that City Council adopt an ordinance providing for the change after a public hearing on the matter. Written notice will be provided to all real property owners as indicated by the Appraisal District on the streets in question notifying them of the hearing. Should this item be approved, staff will schedule the required public hearing, provide the required notices, and Page 142 of 149 prepare an ordinance for Council consideration at a future meeting. Previous Council Action: Council has taken no action on this item. Financial Implications: There are minimal costs associated with the pubic hearing and the possible future installation of street signs associated with this item that can be absorbed within the respective departmental operating budgets. Approvals: Rick Rudometkin Aron Kulhavy Kristy Doll Associated Information: 1. Do You Know_ Linda Pease _ Postcards Magazine 2. Pease-Patton street rename exhibit Page 143 of 149 8/11/22, 11:57 AM Do You Know? Linda Pease | Postcards Magazine https://www.postcardslive.com/do-you-know-linda-pease/3/9 arts destination, enriching the community and its citizens of all ages. Tell us about growing up in a small Texas town. I grew up on a farm in De Leon, Texas, in a tiny house with only three rooms.  At rst, we didn’t have running water, bathrooms, or electricity in the house, but shortly after I went to school, we were able to get electricity. My mother was a fabulous cook, and even though we had little space, we had lots of company and guests.  That was a fun part of growing up, because I could bring friends over for dinner all the time.  My father was brilliant with math and puzzles, despite not having nished high school.  He was a farmer— we had cattle and peanuts.  My grandparents lived not too far away. My grandfather drove the “school bus,” which was really just a modied pickup truck.  I remember my father walking me to the bus and lifting me into the back in the morning.  In the afternoon, he would catch me when I would jump from the bed of the truck into his arms. I was very involved in school activities.  I was active in Future Homemakers of America, played basketball, baseball, and volleyball, and was active in the Spanish Club and cheerleading.  It was a good life growing up. How did a person from a three-room house end up enrolling at SMU? I was fortunate to receive scholarships.  I was able to major in English and become certied to teach. (https://i0.wp.com/www.postcardslive.com/makeover/wp -content/uploads/2014/12/Linda_Wynne_Home.jpg? ssl=1)Teaching became an important part of your future, and so did art.  When did you become interested in art? I’m not entirely sure. Art came along gradually, through school and being exposed to limited but diverse ne arts.  In high school, our school took a eld trip to see Pygmalion, and that was an amazing experience.  I chose SMU, in part because I wanted to be able to do things that were available in the city.  I wanted to go to the ballet, and the opera, and the symphony.  But if I go back to my rst ne-arts related memory, and a very loose interpretation of ne art, I can remember my rst performance when I was six.  The performance was “A Christmas Dream,” and my lines were: “I had a funny dream indeed / I dreamed I was a centipede / For a Christmas Dream, that can’t be beat / because there were socks for all my feet.” (laughs) I guess I can’t be clear about what started my love for arts, but I’ve always loved them at some level. Speaking of love, tell us about meeting Ralph. Some friends suggested we meet, and so we all had dinner together. I won’t say it was love at rst sight, but I had a sense that this was a very important meeting. After three weeks, he asked me to marry him, and I said yes.  I think that scared him, because the next day we went on a date, and he saw an old, grumpy looking couple.  He said, “Do you think they’re married?”  I said, “Are you regretting asking me to marry you?” I could see he was doubting things, so I told him it was okay, we’d just start over—but the next time he asked, there was no going back!  A few months later he asked again, and we were married shortly thereafter. After Ralph and Linda married, they started a family, adding two sons, John and Jim.  They taught school, volunteered with Cub Scouts, and Ralph continued his education, which brought him to Texas A&M for his Ph.D. in English. Shortly thereafter, Ralph decided to take a job at SHSU—and the two moved to Huntsville in 1972. What did you do when you arrived in Huntsville? Privacy - Terms Related Stories Texas Talent: Dave Ward (https://www.postcardslive.com/texas- talent-dave-ward/) Gotta Get Away? Marshall: The Wonderland of Lights (https://www.postcardslive.com/gotta-get- away-marshall-the-wonderland-of-lights/) Gina Adams (https://www.postcardslive.com/author/ginaadams/) • December 1, 2014 Next Up HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT Page 144 of 149 8/11/22, 11:57 AM Do You Know? Linda Pease | Postcards Magazine https://www.postcardslive.com/do-you-know-linda-pease/4/9 Well, in addition to being busy with family things, I volunteered at the COME Center.  I began working for the City of Huntsville in 1975.  I originally worked outreach at the library, taking reading materials and programs to low-income areas. I soon took over the HEAP program, and I worked for Gene Pipes, who was then Director of Recreation.  I began by relying heavily on volunteers, and SHSU’s Criminal Justice department helped considerably; I was able, over time, to hire a part-time worker. I’ve heard about the amazing growth of the program under your stewardship, from about 200 kids to 1,200 or more after you took over. Well, the growth was close to that. (https://i0.wp.com/www.postcardslive.com/makeover/wp -content/uploads/2014/12/DYK-Linda-with-Group.jpg? ssl=1)After doing HEAP for more than a decade, you transitioned to a greater focus on downtown and art- related projects.  Tell us about that. Eventually the schools took over HEAP.  The HEAP program offered art classes, and the idea was those programs might be expanded with an arts commission. I called Harley and Marge Rex, and they took me to Austin. We learned how to set up a commission, and our mission was to distribute money to arts- related projects across the community.  Dr. Daryl Patrick, for example, got money to preserve photos of historic Huntsville, and many other good projects were completed. Not long after, you were able to work on a transformative project involving internationally-renowned artist Richard Haas. The arts commission got the idea of commissioning a mural, and we had recently seen the trompe l’oeill works he had done in the DFW area, particularly the Chisholm Trail Mural.  We brought him to Huntsville, spent a lot of time working with downtown property and business owners, ensuring that we were preserving the historic nature of the downtown area, and began trying to raise funds.  The Meadows Foundation gave us some much-needed start-up funds, and city council also provided funds, and we were off. (https://i0.wp.com/www.postcardslive.com/makeover/wp -content/uploads/2014/12/DYK-Linda-Speaking.jpg? ssl=1)Before that project, what was the state of downtown? There were 17 vacant shops in the nine-block downtown area.  Haas ended up doing 14 major works in the Huntsville downtown, and his artists did additional work on buildings. Within a few years of the project’s completion, there were only two vacant shops. Haas’ artwork graces major U.S. and international cities (including Fort Worth, New York City, Chicago, Munich, Boston, St. Louis, Portland, Miami, Pittsburgh, Washington D.C., Phoenix, and Philadelphia), but the largest concentration of his artwork resides in downtown Huntsville, Texas. The work is a product of Haas’ artistry and skill, but also a product of Pease’s perseverance and skill in dealing with people. The downtown project was a massive undertaking, needing arts commission approval, city council approval, funds from grant-giving foundations, authorization by business and property owners, as well as a busy artist.  Do you think that’s a skill you have, bringing people together for a larger good? Privacy - Terms Related Stories Texas Talent: Dave Ward (https://www.postcardslive.com/texas- talent-dave-ward/) Gotta Get Away? Marshall: The Wonderland of Lights (https://www.postcardslive.com/gotta-get- away-marshall-the-wonderland-of-lights/) Gina Adams (https://www.postcardslive.com/author/ginaadams/) • December 1, 2014 Next Up HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT Page 145 of 149 8/11/22, 11:57 AM Do You Know? Linda Pease | Postcards Magazine https://www.postcardslive.com/do-you-know-linda-pease/5/9 I think art brings people together.  Perhaps there is something deep within my nature that wants that to happen.  I like people, and I want people to come together—perhaps I am drawn to art because of that.  I believe in Christ’s teaching of love and forgiveness, and I try to follow those teachings. I am blessed with energy and enthusiasm, and I don’t know why.  It’s a gift, because I cannot make myself feel that way. (https://i0.wp.com/www.postcardslive.com/makeover/wp -content/uploads/2014/12/Linda_Pease_Snow_8.jpg? ssl=1)How did the Wynne Home become a city property and the site of your oce? The Wynne family, particularly Samuella Wynne Palmer, showed interest in donating the home to the city for a cultural center. Again, we relied heavily on the Meadows Foundation. They helped us learn from the community, and they helped guide us in how to bring a historic structure into use as a cultural center. The Powell Foundation was the rst to provide a grant, and they are a bellwether for giving to the arts in Houston.  Many other grant-giving institutions followed, and the community rallied with funds and sweat-equity as well. It ocially opened in 2006. It’s been open for eight years, how many classes have been offered here? About 40 classes per year for eight years, so more than 300. (https://i0.wp.com/www.postcardslive.com/makeover/wp -content/uploads/2014/12/Linda_Pease_Snow.jpg? ssl=1)How many pieces of art are currently in the Wynne Home? Probably around 100 or more, and that includes some internationally renowned artists such as Jesus Moroles, Charles Pebworth, and Stanley Lea, as well as many local artists. It takes a lot of volunteer and community support to make this happen.  I have a part-time staff member (Jessica Rodriguez), we utilize the SHSU Political Science internship program, and we’ve had more than 14,000 volunteer hours donated this year alone. Earlier you mentioned Christ and bringing people together. The last few years, the Wynne Home has been part of a holiday home tour in Huntsville.  How did that start? It grew out of the efforts of the Walker County Heritage Foundation, which not only helped restore the Joshua Houston, Jr. home, but also began tours revolving around the theme of “growing up in Huntsville.”  Over time, we began decorating in a holiday theme, and then joined the Gibbs-Powell Home in providing tours at Christmas time, and the number of homes grew from there. (https://i0.wp.com/www.postcardslive.com/makeover/wp -content/uploads/2014/12/DSC_0317.jpg?ssl=1)Part of Huntsville was recently designated a “Cultural District,” one of the rst districts so designated.  Tell us about that. The selection occurred in 2009.  It is an 88-block area that incorporates parts of the Eastham-Thomason Park, the Wynne Home, many historic homes in the Avenues, the Sam Houston Memorial Museum, SHSU art galleries, John Smither’s Crazywood Art Gallery, the historic downtown, the Gibbs-Powell Home, the Adickes Foundation, and many of Dan Phillips’ homes.  Huntsville has so many arts and cultural venues, and it’s quite an honor to have the Texas Commission on the Arts recognize the community. Privacy - Terms Related Stories Texas Talent: Dave Ward (https://www.postcardslive.com/texas- talent-dave-ward/) Gotta Get Away? Marshall: The Wonderland of Lights (https://www.postcardslive.com/gotta-get- away-marshall-the-wonderland-of-lights/) Gina Adams (https://www.postcardslive.com/author/ginaadams/) • December 1, 2014 Next Up HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT Page 146 of 149 8/11/22, 11:57 AM Do You Know? Linda Pease | Postcards Magazine https://www.postcardslive.com/do-you-know-linda-pease/6/9 We haven’t spoken much of Ralph, but many people know his work at the University, his love of Shakespeare and lm, or his “volunteer work” at the Wynne Home.  What do you think the public doesn’t know about Ralph? I don’t know if people know he was a Marine. Do they know he draws a cartoon for you each morning at breakfast? I bet they don’t!  Tonight, for example, we are taking some friends for dinner, both of whom have worked as pastors.  This morning, Ralph drew me as a somewhat frazzled character, with a thought balloon asking, “Oh, dinner with two preachers.  Which one do we ask to pray over dinner?”  In addition to making me laugh, his cartoons also capture a certain personality about people, and I think he should have an art show featuring these caricatures one day. How do you think art can benet a community? I think it beauties the community, provides public spaces that can unify the community, and can help brand the community.  I think various pieces serve in diverse ways.  The Adickes statue of Sam Houston, for example, has certainly worked to help brand the community as the home of Sam Houston and SHSU.  Others are site-specic, such as the athlete reaching to catch the ball in a stylized way at the ballpark. Taken together, I think the community’s art enhances the existing beauty of the area and uplifts the spirit. (https://i0.wp.com/www.postcardslive.com/makeover/wp-content/uploads/2014/12/DYK-Linda-at- Table.jpg?ssl=1)Ralph Pease is in the middle of his 43rd year as a Professor at SHSU, making him one of the ve longest-serving employees with the university.  Linda is in her 40th year with the City of Huntsville, making her the longest-serving employee with the City.  Prior to the 1970s, Huntsville boasted no piece of truly public art.  Since the 1970s, more than two dozen public artworks have been installed, and public spaces or buildings such as The Wynne Home and SHSU have added hundreds of pieces of art for the public to enjoy. According to Mayor Mac Woodward, “Linda Pease has devoted her career to promoting the youth, arts, and quality of life in Huntsville.  Her efforts have transformed the community, culminating with the vibrant art scene Huntsville boasts today, as well as the city’s recent designation as a Cultural District, one of the rst seven districts identied by the Texas Commission on the Arts.” Tags:2014 (https://www.postcardslive.com/tag/2014/)Piney Woods (https://www.postcardslive.com/tag/pw/) PREVIOUS ARTICLE Do You Know? Harding Boeker (https://www.postcardslive.com/do-you-know-harding-boeker/) NEXT ARTICLE Privacy - Terms Related Stories Texas Talent: Dave Ward (https://www.postcardslive.com/texas- talent-dave-ward/) Gotta Get Away? Marshall: The Wonderland of Lights (https://www.postcardslive.com/gotta-get- away-marshall-the-wonderland-of-lights/) Gina Adams (https://www.postcardslive.com/author/ginaadams/) • December 1, 2014 Next Up HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT HOME SHARE PICS & MORE FAVORITES PHOTO CONTEST MAGAZINE ARCHIVES ADVERTISE WITH US! CALENDAR FAQ CONTACT Page 147 of 149 CITY SERVICE CENTER448 STATE HIGHWAY 75HUNTSVILLE, TX, 77320Map Created At:www.huntsvilletx.gov/gis CITY OF HUNTSVILLE, TXENGINEERING DEPARTMENT / GIS DIVISION800.02 0.040.01 mi CREATED DATE: 8/10/2022 Coordinate System: NAD 1983 StatePlane Texas Central FIPS 4203 Feet On Any Print Size 1 in = 200 ft On 8.5 x 11 inch Print Service Layer Credits: Pease/Patton Streets Huntsville GIS Division The City of Huntsville, Texas or its employees gives NO warranty, expressed or implied, as to the accuracy, reliability, or completeness of these data. See the full GIS Data Disclaimer at: www.huntsvilletx.gov/438/City-Maps Page 148 of 149 CITY COUNCIL AGENDA 8/16/2022 Agenda Item Number: 4.a. Agenda Item: Ian McPhail - Would like to address diversity and inclusion as a means of interesting college students to patronize local Huntsville businesses. Initiating Department/Presenter: City Secretary Presenter: Ian McPhail Recommended Motion: None Strategic Initiative: Discussion: Previous Council Action: Financial Implications: Approvals: Kristy Doll Associated Information: Page 149 of 149