Loading...
HomeMy WebLinkAboutAgenda CC 12.17.2021 SpecialN otice of M eeting of the Governing B ody of the C ity of Georgetown, Texas D ecember 1 7, 2 02 1 The Georgetown City Council will meet on December 17, 2021 at 4:00 P M at City Council Chambers, 510 W 9th Street, Georgetown, TX 78626 The City of Georgetown is committed to compliance with the Americans with Disabilities Act (AD A). If you require assistance in participating at a public meeting due to a disability, as defined under the AD A, reasonable assistance, adaptations, or accommodations will be provided upon request. P lease contact the City Secretary's Office, at least three (3) days prior to the scheduled meeting date, at (512) 930-3652 or City Hall at 808 Martin Luther King J r. Street, Georgetown, TX 78626 for additional information; TTY users route through Relay Texas at 711. Le gislative Re gular Age nda A Second Reading of an Ordinance of the City Council of the City of Georgetown approving the Redistricting of the City’s single-member Council Districts and establishing new district boundary lines based on the 2020 Census Data -- Skye Masson, City Attorney B Second Reading of an Ordinance to consider the designation of the Tax Increment Reinvestment Zone (TIR Z) Number Six (North Georgetown) under Chapter 311 of the Texas Code for approximately 224 acres of land in the City Limits, generally located on the west of IH35, north of the H W Y195 intersection and the adoption of a P reliminary P roject P lan and Financing P lan for the proposed TIRZ -- Michaela Dollar, Economic Development Director C Consideration of the TIF Zone #6 (North Georgetown TIRZ) Infrastructure Reimbursement Agreement between the City of Georgetown and J S AC Q/Georgetown, L P -- Michaela Dollar, Economic Development Director D Consideration of an economic development incentive agreement between Georgetown Transportation Enhancement Corporation (G TEC) and J S AC Q/Georgetown, L P -- Michaela Dollar, Economic Development Director Exe cutive Se ssion In compliance with the Open Meetings Act, Chapter 551, Government Code, Vernon's Texas Codes, Annotated, the items listed below will be discussed in closed session and are subject to action in the regular session. E Sec. 551.071: Consul tati on w i th Attorney Advice from attorney about pending or contemplated litigation and other matters on which the attorney has a duty to advise the City Council, including agenda items. Adjournme nt Ce rtificate of Posting I, R obyn Densmore, C ity S ecretary for the C ity of G eorgetown, Texas, do hereby c ertify that Page 1 of 170 this Notice of Meeting was pos ted at C ity Hall, 808 Martin Luther King Jr. S treet, G eorgetown, T X 78626, a plac e readily ac cessible to the general public as required by law, on the _____ day of _________________, 2021, at __________, and remained so pos ted for at leas t 72 c ontinuous hours prec eding the s cheduled time of said meeting. __________________________________ R obyn Dens more, C ity S ec retary Page 2 of 170 City of Georgetown, Texas City Council Special Meeting D ecember 17, 2021 S UBJEC T: Second Reading of an Ordinance of the City Co unc il o f the City of Geo rgeto wn approving the Redistricting of the City’s single-member Council Districts and establishing new district boundary lines base d on the 2 02 0 Census Data -- Skye Masson, City Attorney I T EM S UMMARY: The results of the 2020 fe de ral Census indicated that the City of Georgetown’s single-member co unc il districts are sufficiently out o f population balance to require redistricting in order to comply with the “one-person, o ne-vo te” (equal population) princ iple established by the U.S. Co nstitution. As a result the City o f Geo rgeto wn (the “City”) engaged the law firm of Bickerstaff Heath D e lgado Acosta L LP to act as the City’s redistricting c onsultant, including advising and assisting the City Council in preparatio n of a ne w redistricting plan in co mpliance with applicable requirements of state and federal law. On Octo ber 26, 2021, the City Council ado pted redistricting criteria to assist the City and the public in developing redistricting plans which comply with applicable fe de ral and state laws, and the ado pted redistricting criteria were applied in the development of the City’s new redistricting plan and also adopted redistricting guidelines regarding the submission of comments and proposed plans by the public, to ensure the ability of the City to timely receive and adequately consider them. Consistent with the criteria and guidelines establish by the City Council, the City Council meetings on November 9, 2021, on Nove mber 23, 20 21 , and on Decembe r 3, 20 21 and a public hearing held on December 1 4, 2021. The City provided notice to the public of each meeting and public hearing through meeting agendas posted in compliance with the Texas Open Meetings. On December 14, 2 02 1, the City Council will consider citizen oral te stimony and written comments, and reports from the City’s redistricting consultant regarding the appropriate reconfiguration of the council member districts, voted to approve Revised P lan C as the City’s redistricting plan. In adoption this Ordinanc e , the City Co unc il finds that the attached city council district redistricting plan is in the best interest of the citizens of the City, complies with the adopted redistricting criteria, and is believed to comply with all state and federal requirements. F I NANC I AL I MPAC T: N/A S UBMI T T ED BY: R LD for Skye Masson, City Attorney AT TAC HMENT S : Description O R D_2020 R edistricting Adoption_12.6.2021 Exhibit A- R edistricting O rdinance G eorgetown_P lanC Exhibit B- R edistricting O rdinance Page 3 of 170 _____________________________________________________________________________________________ Ordinance No. ___________________ Page 1 of 2 2021 Redistricting Date Approved: __________________ ORDINANCE ________________________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, APPROVING THE REDISTRICTING OF THE CITY'S SINGLE-MEMBER COUNCIL DISTRICTS AND ESTABLISHING NEW DISTRICT BOUNDARY LINES BASED ON 2020 CENSUS DATA FOR GEORGETOWN CITY COUNCIL ELECTIONS; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the results of the 2020 Federal Census have been considered and indicate t hat the City of Georgetown's single-member council districts are sufficiently out of population balance to require redistricting in order to comply with the "one-person, one-vote" (equal population) principle established by the U.S. Constitution; and , WHE REAS, the City of Georgetown (the "City") engaged the law firm of Bickerstaff Heath Delgado Acosta LLP to act as the City's redistricting consultant, including advising and assisting the City Council in preparation of a new redistricting plan in compliance with applicable requirements of state and federal law; and , WHEREAS, on October 26, 2021, the City Council adopted redistricting criteria to assist the City and the public in developing redistricting plans which comply with applicable federal and state laws, and the adopted redistricting criteria were applied in the development of the City's new redistricting plan: and , WHEREAS, on October 26, 2021, the City Council also adopted redistricting guidelines regarding the submission of comments and proposed plans by the public, to ensure the ability of the City to timely receive and adequately consider them; and , WHEREAS, during the redistricting process the City provided notice to the public of its proposed discussions and development of a redistricting plan through meeting agendas posted in compliance with the Texas Open Meetings Act, notices on the City's website, and publication of newspaper notices regarding public hearings; and , WHEREAS, the City Council has considered proposed redistricting plans at City Council meetings on November 9, 2021, on November 23, 2021, and on December 3, 2021 and a public hearing held on December 14, 2021, and has considered citizen oral testimony and written comments, and reports from the City's redistricting consultant regarding the appropriate reconfiguration of the council member districts; and , WHEREAS, the City Council finds that the attached city council district redistricting plan is in the best interest of the citizens of the City, complies with the adopted redistricting criteria, and is believed to comply with all state and federal requirements. Page 4 of 170 _____________________________________________________________________________________________ Ordinance No. ___________________ Page 2 of 2 2021 Redistricting Date Approved: __________________ NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS THAT : Section 1. The existing single-member council district boundary lines for the City of Georgetown are hereby amended, and the new districting pian depicted on the map attached hereto as Exhibit A , defining new districts, as such new districts are further described in the tables attached hereto as Exhibit B report ing populations and demographic statistics for each such new district, is hereby adopted and designated to define the City's seven (7) single-member council districts from and after the Effective Date; that Exhibits A and B are incorporated by reference in and made a part of this ORDINANCE, and shall be kept on file in the City Secretary's Office. Section 2. Pursuant to Section 2.01 of the Home Rule Charter of the City of Georgetown, Councilmembers will complete the terms of office to which they were elected if the changes to district boundaries in the new district plan cause their residences no longer to be within the districts from which they were elected. Upon completion of the terms to which they were elected prior to the adoption of the new district plan, Councilmembers must thereafter reside in the appropriate district to run for re-election to that place. Section 3. This ORDINANCE shall become effective on January 1, 2022 pursuant to the City Charter; and that thereafter all Georgetown City Council elections shall be held under and in accordance with the new single member council district districting plan here adopted by the City Council PASSED AND APPROVED on First Reading on the 14th day of December 2021. PASSED AND APPROVED on Second Reading on the 17th day of December 2021. CITY OF GEORGETOWN _______________________________ Josh Schroeder, Mayor ATTEST: ____________________________ Robyn Densmore, City Secretary APPROVED AS TO FORM: _____________________________ Skye Masson, City Attorney Page 5 of 170 Page 6 of 170 Persons Deviation Hispanic % of Total Population Non-Hispanic Anglo % of Total Population Black % of Total Population Asian % of Total Population Other % of Total Pop. Ideal Size Hispanic ANGLO Black Haw Pac. Isl.Asian HAW/ PAC % of Total Pop. Other Two or More Races AM Indian Native IND / NAT % TOT Pop. Two or More Races % Tot Pop District 9,5521 -0.02%41.92%43.18%8.05%2.60%0.32%9,554 4,004 4,125 769 248 17 0.18%31 338150.16%3.54% 9,6542 1.04%20.15%68.80%4.00%2.29%0.38%9,554 1,945 6,642 386 221 3 0.03%37 385350.36%3.99% 9,5513 -0.03%9.71%83.76%2.35%1.19%0.18%9,554 927 8,000 224 114 1 0.01%17 239300.31%2.50% 9,5224 -0.34%5.09%90.35%0.77%0.88%0.21%9,554 485 8,603 73 84 2 0.02%20 241140.15%2.53% 9,6545 1.04%16.07%74.85%2.76%1.84%0.40%9,554 1,551 7,226 266 178 8 0.08%39 357260.27%3.70% 9,4336 -1.27%27.67%59.11%6.96%1.31%0.39%9,554 2,610 5,576 657 124 12 0.13%37 379370.39%4.02% 9,5147 -0.42%30.28%54.21%5.83%3.97%0.66%9,554 2,881 5,158 555 378 10 0.11%63 445230.24%4.68% 66880 / 7 = 9554Ideal Size: 66,880Total Population: Some percentages may be subject to rounding errors.Overall Deviation: 66,880 14,403 21.54% 45,330 67.78% 2,930 4.38% 1,347 2.01% 180 0.27% 53 0.08% 244 0.36% 2,384 3.56% TOTAL: 2.31% Plan Name: City of Georgetown Council Districts - Plan C Revised Demographics Report - Detailed 2020 Census Total Population Plan Last Edited on: 12/2/2021 5:26:27 PM 12/3/2021 1:13:38 PMReport Date: Based on: 2020 Census Geography, 2020 PL94-171 Page: 1 Page 7 of 170 City of Georgetown, Texas City Council Special Meeting D ecember 17, 2021 S UBJEC T: Second Reading of an Ordinance to consider the designation of the Tax Increment Reinvestme nt Zone (TIR Z) Number Six (North Geo rge to wn) under Chapter 311 o f the Texas Co de for appro ximate ly 224 acres of land in the City Limits, generally located on the west o f IH35, north of the H W Y19 5 intersection and the adoptio n of a P reliminary P roject P lan and Financing P lan for the proposed TIR Z -- Michaela Dollar, Economic Development Director I T EM S UMMARY: An Ordinance of the City Council of the City of Georgetown, Texas, designating a certain area within the City of Georgetown, Williamson County, Texas, as Tax Increment Financing Reinvestment Zone Number Six (“North Georgetown TIRZ”); establishing the boundaries of such Zone; creating a Board of Directors for said Reinvestment Zone, and other matters related thereto; containing findings; providing a repealing clause; providing a severability clause; and providing an effective date. The Georgetown City Council desires to create Tax Increment Reinvestment Zone (TIR Z) #6, aka the North Georgetown TIRZ, consisting of approximately 224 acres of land generally located along IH35, north of the H W Y195 intersection, pursuant to the Tax Increment Financing Act, as codified in Chapter 311 of the Texas Tax Code, as amended (the “Act”). The purpose of the TIR Z creation is to finance public infrastructure needed to develop the site for industrial and commercial use in partnership with J ackson Shaw (the Developer). The land within the proposed TIRZ has been entitled for these uses as well as a portion for multi-family. Currently, the site does not have wastewater infrastructure in place, which has impeded the development of this site and the surrounding area. The TIR Z would aid in offsetting the cost of construction of a sanitary sewer interceptor along the Dry Berry Creek bed, as outlined in the City’s wastewater master plan. The line would be constructed by the Developer to City requirements and become city-owned public infrastructure upon completion and acceptance by the City. This line would connect with the Berry Creek Interceptor, which is a current City capital improvement project. The ultimate build of the infrastructure will allow for wastewater service for a large area of the City of Georgetown spanning from H W Y195 to IH35, including the proposed TIRZ. The estimated cost of the Dry Berry Creek interceptor line is approximately $10 million. The TIR Z will take effect at the adoption of the ordinance by City Council, which will set the base year at 2021 for the assessed valuation. The City will participate by contributing a portion of the incremental increase in real property ad valorem taxes following a 15-year contribution schedule that begins in 2024. The contribution schedule is 60% of the incremental tax increase in years 1-5, 55% of the incremental tax increase in years 2-10, and 50% of the incremental increase in years 11-15 with the last year of contribution being 2038. Following approval of a development agreement, the Developer will then be reimbursed for the expense of the public wastewater infrastructure construction utilizing annual payments from the TIR Z fund. The maximum amount of reimbursement is $8.5 million, or the end of the 15-year TIRZ period, whichever occurs first. The Developer must complete construction of the wastewater line and 400,000 square feet of industrial development prior to receiving reimbursement payments. The first 400,000 square feet of industrial development can be serviced by temporary septic until the wastewater extension is completed. All other development within the TIR Z must be serviced by the wastewater line. F I NANC I AL I MPAC T: Page 8 of 170 A maximum of $8,500,000, financed by the tax increment generated within the TIR Z boundaries S UBMI T T ED BY: Michaela Dollar, Economic Development Director AT TAC HMENT S : Description O rdinance & project and financ ing plan Exhibit 1 - Metes and Bounds of T I R Z Exhibit 2 - F eas ibility S tudy North G eorgetown T I R Z O rd 2nd R eading P resentation Page 9 of 170 Ordinance Number: 2021-____ Page 1 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached ORDINANCE NO. 2021-_____ An Ordinance of the City Council of the City of Georgetown, Texas, designating a certain area within the City of Georgetown, Williamson County, Texas, as Tax Increment Reinvestment Zone Number Six (“North Georgetown TIRZ”); establishing the boundaries of such Tax Increment Reinvestment Zone; creating a Board of Directors for said Tax Increment Reinvestment Zone, and other matters related thereto; containing findings; providing a repealing clause; providing a severability clause; and providing an effective date. Whereas, the City Council desires to promote the development or redevelopment of a certain geographic area within its jurisdiction by the designation of a tax increment reinvestment zone, as authorized by the Tax Increment Financing Act, Chapter 311, of the Texas Tax Code (the “Act”); and Whereas, in compliance with the Act, the City called a public hearing to receive comments on the creation of the proposed tax increment reinvestment zone and its benefits to the City and the property in the proposed tax increment reinvestment zone; and Whereas, in compliance with the Act, notice of the public hearing was published in a newspaper of general circulation in the City, such publication date being not later than seven (7) days prior to the date of the public hearing; and Whereas, such public hearing was convened at the time and place mentioned in the published notice, to-wit, on the 14th day of December 2021 at 6:30 p.m., at the City Council Chambers in the City Hall of the City of Georgetown, Texas, which hearing was then closed; and Whereas, the City, at such public hearing, invited any interested person, or the person's representative, to appear and speak for or against the creation of the proposed tax increment reinvestment zone, the boundaries of the proposed tax increment reinvestment zone, as described in Exhibit “A” attached hereto and as depicted in the map attached hereto as Exhibit “B”, whether all or part of the territory described in Exhibit “A” and as depicted in Exhibit “B” should be included in such proposed tax increment reinvestment zone, and for or against the concept of tax increment financing; and Whereas, all owners of property located within the proposed tax increment reinvestment zone were given the opportunity at such public hearing to protest the inclusion of their property in the proposed tax increment reinvestment zone; and Whereas, the City has prepared a preliminary project and reinvestment zone financing plan attached hereto as Exhibit “C”. Now, therefore, be it ordained by the City Council of the City of Georgetown, Texas, that: Section 1. The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct. Page 10 of 170 Ordinance Number: 2021-____ Page 2 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Section 2. The City Council, after conducting such public hearing and having heard such evidence and testimony has made the following findings and determinations based on the evidence and testimony presented to it: (a) That the public hearing on adoption of the tax increment reinvestment zone has been properly called, held, and conducted and that notice of such hearing has been published as required by law. (b) That creation of the proposed tax increment reinvestment zone with boundaries as described in Exhibit “A” and as depicted in Exhibit “B” will result in benefits to the city, its residents and property owners, in general, and to the property, residents and property owners in the proposed tax increment reinvestment zone. (c) That the proposed tax increment reinvestment zone, as defined in Exhibit “A” and as depicted in Exhibit “B”, meets the criteria for the creation of a tax increment reinvestment zone as set forth in the Act in that it is a geographic area located wholly within the corporate limits of the City and the area meets the criteria set forth in the Act for the designation as a tax increment reinvestment zone under Tax Code, Section 311.005. (d) That the total appraised value of all taxable real property in the proposed tax increment reinvestment zone according to the most recent appraisal roll of the City, together with the total appraised value of taxable real property in all other existing tax increment reinvestment zones within the City, according to the most recent appraisal roll of the City, does not exceed fifty percent (50%) of the current total taxable value of taxable real property in the City and in the industrial districts created by the City, if any. (e) That the proposed improvements in the proposed tax increment reinvestment zone will significantly enhance the value of all taxable real property in the proposed tax increment reinvestment zone and will be of general benefit to the City. (f) That the development or redevelopment of the property in the proposed tax increment reinvestment zone will not occur solely through private investment in the reasonably foreseeable future. (g) That not more than thirty percent (30%) of the property in the proposed tax increment reinvestment zone, excluding property that is publicly owned, is currently used for residential purposes. (h) That the proposed tax increment reinvestment zone is predominantly open or undeveloped and, because of obsolete platting, deterioration of structures or site improvements, or other factors, substantially impair or arrest the sound growth of the municipality or county. (i) That the proposed tax increment reinvestment zone substantially arrests or impairs the sound growth of the City, retards the provision of housing accommodations, or Page 11 of 170 Ordinance Number: 2021-____ Page 3 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use because of the presence of: (1) The predominance of defective or inadequate sidewalk or street layout; and (2) Faulty lot layout in relation to size, adequacy, accessibility, or usefulness. Section 3. The City hereby designates a tax increment reinvestment zone over the area described in Exhibit “A” attached hereto and as depicted in the map attached as Exhibit “B”, and such tax increment reinvestment zone shall hereafter be identified as “Reinvestment Zone Number Six, City of Georgetown, Texas” or “North Georgetown TIRZ” (hereinafter sometimes referred to herein as the “Reinvestment Zone”). Section 4. There is hereby established a board of directors for Reinvestment Zone, which shall consist of at least five (5) but not more than fifteen (15) members, unless more members are required to be appointed to satisfy the requirements of Section 311.009, Tax Code. The members of the Board of Directors of the Zone shall be appointed as follows: (a) The City shall be entitled to appoint a minimum of five (5) and a maximum of ten (10) members of the Board of Directors, except that if there are fewer than five (5) directors appointed by taxing units other than the City, the City Council may appoint more than ten (10) members as long as the total membership of the Board of Directors does not exceed fifteen (15) members. The City Council shall appoint its initial members to the Board of Directors within sixty (60) days after passage of this Ordinance. (b) Each taxing unit, other than the City, that levies taxes on real property in the Reinvestment Zone may appoint one member of the Board of Directors if the taxing unit has approved the payment of all or part of the tax increment produced by such taxing unit into the tax increment fund for the Reinvestment Zone. A taxing unit eligible to appoint a member to the Board of Directors may waive such right. If a taxing unit waives its right to appoint a member of the board, the City may appoint a member to the Board of Directors to such position. The governing body of each taxing unit, other than the City, eligible to appoint a member to the Board of Directors shall appoint such member within sixty (60) days after such taxing unit has entered into an agreement with the City for payment of all or part of the tax increment produced by such taxing unit into the tax increment fund for the Zone. Failure of such taxing unit to appoint a director within such sixty (60) day period shall be deemed a waiver of the right to appoint a director, and the City Council shall be entitled to appoint a person to such position. (c) A vacancy on the Board of Directors shall be filled as set forth in the Act. Positions one through three on the Board of Directors are reserved for the City. The remaining positions are reserved for other taxing units that levy real property taxes in the Reinvestment Zone and if the taxing unit has approved the payment of all or part of the tax increment produced by such taxing unit into the tax increment fund for Page 12 of 170 Ordinance Number: 2021-____ Page 4 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached the Reinvestment Zone. The City Council shall appoint additional member(s) to maintain a board of at least five (5) members. The directors appointed by taxing units other than the City shall be assigned a Board position in the order that the City receives the appointment. All members appointed to the Board of Directors shall meet eligibility requirements as set forth in the Act. (d) The terms of office for members of the Board of Directors shall be for two (2) years. Each year the City Council shall designate a member of the Board of Directors to serve as Chairperson of the Board of Directors. The Chairperson shall serve a term of office of one year that runs from January 1 through and including December 31 of the calendar year. The Board of Directors shall elect from its members a Vice- Chairperson and other officers, as it deems appropriate. (e) The Board of Directors shall make recommendations to the City Council concerning the administration of the Zone. It shall prepare and adopt a project plan and the reinvestment zone financing plan for the Reinvestment Zone and must submit such plans to the City Council for its approval. The City Council delegates to the Board of Directors all powers necessary to prepare and implement the project and the reinvestment zone financing plans for the Zone, including any required annual reports on the status of the Zone, all subject to the prior approval of the City Council. The Board of Directors may not enter into agreements to implement the project and reinvestment zone plan without the express authorization of the City Council. Section 5. The Zone shall take effect on adoption of this Ordinance, and the termination of the Zone shall occur on December 31, 2038 (with collection of 2038 tax increment in 2039) , or at an earlier time designated by subsequent ordinance of the City Council, or at such time subsequent to the issuance of any tax increment bonds, if any, that all project costs, tax increment bonds, notes or other obligations of the Reinvestment Zone, and the interest thereon, if any, have been paid in full. Section 6. The tax increment base for the Reinvestment Zone, which is the total taxable value of all taxable real property located in the Reinvestment Zone, is to be determined as of January 1, 2021, the year in which the Reinvestment Zone was designated as a tax increment reinvestment zone (the “Tax Increment Base”). Tax Increment Base means the total appraised value of all real property taxable by a taxing unit located in the Reinvestment Zone for the 2021 tax year. “Tax Increment” means the total amount of real property taxes levied and collected by a taxing unit for that year on the Captured Appraised Value of real property taxable by a taxing unit and located in the Reinvestment Zone. Captured Appraised Value means the total taxable value of all real property taxable by a taxing unit and located in the Reinvestment Zone for the year, less the Tax Increment Base of the taxing unit. For purposes of this Ordinance “taxing unit” means the City of Georgetown and any other political subdivision or special district that taxes real property within the Reinvestment Zone that enters into an agreement with the City for the payment of all or part of the tax increment produced by such other taxing unit into the Tax Increment Fund for the Zone. Page 13 of 170 Ordinance Number: 2021-____ Page 5 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Section 7. There is hereby created and established a Tax Increment Fund for the Reinvestment Zone which may be divided into such sub-accounts as may be required, into which all Tax Increments contributed by the City or other taxing unit, less any of the amounts not required to be paid into the Tax Increment Fund pursuant to the Act, are to be deposited. All Tax Increments as defined herein shall be deposited in the Tax Increment Fund. The Tax Increment Fund and any sub-accounts are to be maintained at the depository bank of the City and shall be secured in the manner prescribed by law for funds of the City. In addition, all revenues from the sale of any tax increment bonds, notes or certificates of obligation, hereafter issued by the City; revenues from the sale of any property acquired as part of the Reinvestment Zone financing plan; and any other revenues to be dedicated to and used in the Reinvestment Zone shall be deposited into the Tax Increment Fund or sub-account from which money will be disbursed to pay project costs for the Reinvestment Zone or to satisfy the claims of holders of tax increment bonds, notes or certificates of obligations issued for the Reinvestment Zone, or to satisfy other obligations authorized by the Act. Section 8. The City will participate in the Zone for a period of fifteen (15) years by contributing and depositing into the Tax Increment Fund sixty percent (60%) of the City’s tax increment from real property ad valorem taxes assessed and collected for tax years 2024 through and including 2028; fifty-five percent (55%) of the City’s tax increment from real property ad valorem taxes assessed and collected for tax years for years 2029 through and including 2033; and fifty percent (50%) of the City's tax increment from real property ad valorem taxes assessed and collected for tax years 2034 through and including 2038. Section 9. All provisions of the ordinances of the City of Georgetown, in conflict with the provisions of this Ordinance be, and the same are hereby, repealed, and all other provisions of the ordinances of the City of Georgetown not in conflict with the provisions of this Ordinance shall remain in full force and effect. Section 10. Should any sentence, paragraph, subdivision, clause, phrase, or section of this Ordinance be adjudged or held to be unconstitutional, illegal, or invalid, the same shall not affect the validity of this Ordinance as a whole or a part or provision thereof other than the part thereof decided to be unconstitutional, illegal, or invalid. Section 11. The Mayor or City Manager is hereby authorized to execute any contracts or other agreements with any taxing units that elect to enter into an agreement with the City for payment of all or part of the tax increment produced by such other taxing unit into the Tax Increment Fund for the Reinvestment Zone. Section 12. This Ordinance shall take effect immediately from and after its passage and the publication of the caption, as the law and charter in such cases provide. APPROVED on First Reading on the ____ day of __________, 2021. APPROVED AND ADOPTED on Second Reading on the ____ day of __________, 2021. Page 14 of 170 Ordinance Number: 2021-____ Page 6 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached THE CITY OF GEORGETOWN: ATTEST: Josh Schroeder Robyn Densmore Mayor City Secretary APPROVED AS TO FORM: Skye Masson, City Attorney Page 15 of 170 Ordinance Number: 2021-____ Page 7 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Exhibit “A” Legal Description of the Zone FIELD NOTES FOR A 119.784 ACRE TRACT OF LAND: BEING A 119.784 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 119.784 ACRE TRACT, BEING ALL OF THAT CALLED 111.36 ACRE TRACT OF LAND KNOWN AS "TRACT I", THE REMAINING PORTION OF THAT CALLED 7.3 ACRE TRACT OF LAND KNOWN AS "TRACT II", AND ALL OF THAT CALLED 2.12 ACRE TRACT OF LAND KNOWN AS "TRACT III", RECORDED IN VOLUME 512, PAGE 71, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, AND BEING ALL OF THAT CALLED 3.05 ACRE TRACT OF LAND RECORDED IN VOLUME 545, PAGE 392, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, BEING THE SAME PROPERTY CONVEYED TO JASPER N. SUDDUTH AND WIFE, IDA P. SUDDUTH IN INSTRUMENT RECORDED IN VOLUME 512, PAGE 71 AND BEING ALL OF THE SAME PROPERTY CONVEYED TO DONALD HOYLE AND WIFE, PATSY S. HOYLE IN INSTRUMENT RECORDED IN VOLUME 545, PAGE 392; SAID 119.784 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1/2" iron rod located for the northwest corner of the remainder of said 7.3 acre tract, the northeast corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, being an angle point of that called 104.89 acre tract of land recorded in Document No. 2008016952, Official Public Records, Williamson County, Texas, said point being the northwest corner of the herein described tract of land; Thence, with the northwest lines of the remainder of said 7.3 acre tract, said 2.12 acre tract, and said 111.36 acre tract, the southeast lines of said 104.89 acre tract, the following two (2) courses and distances: 1. N 64° 22' 55" E, a distance of 197.60' (Record per Doc. No. 2008016952: N 65° 45' 36" E, a distance of 197.59'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. N 68° 12' 57" E, a distance of 1820.19' (Record per Doc. No. 2008016952: N 69° 36' 19" E, a distance of 1820.51'), to a 1" square iron pipe located for an angle point of said 111.36 acre tract, being the southeast corner of said 104.89 acre tract, the southwest corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; Page 16 of 170 Ordinance Number: 2021-____ Page 8 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached 3. Thence, with the northwest line of said 111.36 acre tract, the southeast line of said 72.32 acre tract, N 70° 40' 37" E, passing a 1" iron pipe located at a distance of 656.89', continuing a total distance of 659.38' (Record: N 74° 10' 00" E, a distance of 658.61')(Record per Vol. 886, Pg. 335: N 72° 57' 00" E, a distance of 658.13')(Record per Doc. No. 2006017468: N 70° 39' 41" E, a distance of 659.38'), to a 1/2" iron rod located in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the northeast corner of said 111.36 acre tract, said point being the northeast corner of the herein described tract of land; 4. Thence, with the northwest right-of-way line of Interstate Highway 35 Frontage Road, the southeast line of said 111.36 acre tract, S 13° 56' 20" W, passing a TxDOT concrete monument located at a distance of 543.58', a TxDOT concrete monument located at a distance of 1000.60', a TxDOT concrete monument located at a distance of 2001.10', continuing 100.54' for a total distance of 3645.82' (Record per Doc. No. 2006017468: S 13° 56' 29" W, a distance of 3646.70'), to a calculated point in a power pole in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the southeast corner of said 111.36 acre tract, said point being the southeast corner of the herein described tract of land; 5. Thence, departing the northwest right-of-way line of Interstate Highway 35 frontage road, with the southeast lines of said 111.36 acre tract, said 2.12 acre tract, and the remainder of said 7.3 acre tract, the northwest line of that called 1.249 acre tract of land known as "Second Tract", recorded in Volume 1732, Page 249, Deed Records, Williamson County, Texas, S 67° 42' 10" W, passing a 3/8" iron rod located at a distance of 0.42' for the northeast corner of said 1.249 acre tract, a 1/2" iron rod located at a distance of 994.53' for the northwest corner of said 1.249 acre tract, continuing 56.01' for a total distance of 1050.96' (Record per Vol. 1732, Pg. 249: S 71° 00' 00" W, a distance of 990.14'), to a calculated point in the center of Dry Berry Creek, being the southwest corner of the remainder of said 7.3 acre tract, the southeast corner of that called 45.00 acre tract of land recorded in Document No. 2004002927, Official Public Records, Williamson County, Texas, being in a northwest line of that called 71.997 acre tract of land recorded in Document No. 2008000666, Official Public Records, Williamson County, Texas, said point being the southwest corner of the herein described tract of land; Page 17 of 170 Ordinance Number: 2021-____ Page 9 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Thence, with the approximate center line of Dry Berry Creek, the following twelve (12) courses and distances: 6. N 18° 43' 13" W, a distance of 119.07', to a calculated point for an angle point of the herein described tract of land; 7. N 08° 20' 24" W, a distance of 77.91', to a calculated point for an angle point of the herein described tract of land; 8. N 06° 15' 48" E, a distance of 102.38', to a calculated point for an angle point of the herein described tract of land; 9. N 16° 24' 06" E, a distance of 224.02', to a calculated point for an angle point of the herein described tract of land; 10. N 07° 44' 03" E, a distance of 168.85', to a calculated point for an angle point of the herein described tract of land; 11. N 07° 06' 33" W, a distance of 204.47', to a calculated point for an angle point of the herein described tract of land; 12. N 11° 33' 16" W, a distance of 283.45', to a calculated point for an angle point of the herein described tract of land; 13. N 13° 30' 25" W, a distance of 113.69', to a calculated point for an angle point of the herein described tract of land; 14. N 19° 16' 42" W, a distance of 358.97', to a calculated point for an angle point of the herein described tract of land; 15. N 21° 52' 20" W, a distance of 91.57', to a calculated point for an angle point of the herein described tract of land; 16. N 32° 08' 36" W, a distance of 49.98', to a calculated point for an angle point of the herein described tract of land; 17. N 42° 07' 33" W, a distance of 44.61', to a calculated point in the center of Dry Berry Creek, being in a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, said point being an exterior corner of the herein described tract of land; Page 18 of 170 Ordinance Number: 2021-____ Page 10 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached 18. Thence, departing the center of Dry Berry Creek, with a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, N 62° 51' 22" E, passing a 1/2" iron rod located for reference at a distance of 30.81', continuing 52.06' for a total distance of 82.87', to a 1/2" iron rod located for an interior corner of the remainder of said 54.3 acre tract, the southeast corner of said 54.3 acre tract, said point being an interior corner of the herein described tract of land, Thence, with the southwest lines of the remainder of said 7.3 acre tract, the northeast lines of said 54.3 acre tract, the following fourteen (14) courses and distances: 19. N 21° 45' 16" W, a distance of 131.35' (Record per Doc. No. 2014088568: N 20° 22' 13" W, a distance of 131.35'), to a 60D nail located for an angle point of the herein described tract of land; 20. N 20° 31' 05" W, a distance of 60.86' (Record per Doc. No. 2014088568: N 19° 06' 55" W, a distance of 60.76'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 21. N 30° 43' 16" W, a distance of 11.06' (Record per Doc. No. 2014088568: N 29° 19' 54" W, a distance of 11.05'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 22. N 22° 54' 40" W, a distance of 104.20' (Record per Doc. No. 2014088568: N 21° 31' 18" W, a distance of 104.14'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 23. N 18° 03' 10" W, a distance of 130.05' (Record per Doc. No. 2014088568: N 16° 43' 03" W, a distance of 130.08'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 24. N 23° 12' 32" W, a distance of 100.95' (Record per Doc. No. 2014088568: N 21° 53' 07" W, a distance of 101.09'), to a 1/2" iron rod located for an angle point of the herein described tract of land; Page 19 of 170 Ordinance Number: 2021-____ Page 11 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached 25. N 20° 47' 10" W, a distance of 180.56' (Record per Doc. No. 2014088568: N 19° 26' 34" W, a distance of 180.48'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 26. N 22° 02' 53" W, a distance of 104.75' (Record per Doc. No. 2014088568: N 20° 35' 52" W, a distance of 104.99'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 27. N 26° 22' 25" W, a distance of 33.25' (Record per Doc. No. 2014088568: N 24° 55' 24" W, a distance of 33.32'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 28. N 08° 48' 02" W, a distance of 6.36' (Record per Doc. No. 2014088568: N 07° 21' 01" W, a distance of 6.37'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 29. N 20° 14' 35" W, a distance of 16.17' (Record per Doc. No. 2014088568: N 18° 49' 16" W, a distance of 16.18'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 30. N 20° 03' 30" W, a distance of 17.68' (Record per Doc. No. 2014088568: N 18° 38' 11" W, a distance of 17.69'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 31. N 20° 06' 15" W, a distance of 231.63' (Record per Doc. No. 2014088568: N 18° 40' 56" W, a distance of 231.73'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 32. N 19° 32' 43" W, a distance of 110.22' (Record per Doc. No. 2014088568: N 18° 07' 24" W, a distance of 110.27'), to the POINT OF BEGINNING containing 119.784 acres of land. Note: The basis of bearing was established using the Trimble VRS Network, NAD (83), Texas State Plane Coordinate System, Central Zone, 4203, US Survey Foot, Grid. A survey plat was prepared by a separate document. Page 20 of 170 Ordinance Number: 2021-____ Page 12 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached FIELD NOTES FOR A 104.884 ACRE TRACT OF LAND: BEING A 104.884 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT, BEING ALL OF THAT CALLED 104.89 ACRE TRACT OF LAND RECORDED IN DOCUMENT NO. 2020151834, OFFICIAL PUBLIC RECORDS, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1" square iron pipe located for the easternmost corner of said 104.89 acre tract, the southernmost corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, being an angle point of that called 111.36 acre tract of land known as "Tract 1", recorded in Volume 512, Page 71, Deed Records, Williamson County, Texas, said point being the easternmost corner of the herein described tract of land; Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 111.36 acre tract, the following two (2) courses and distances: 1. S 68° 12' 57" W, a distance of 1820.19' (Record: S 69° 36' 19" W, a distance of 1820.51'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. S 64° 22' 55" W, a distance of 197.60' (Record: S 65° 45' 36" W, a distance of 197.59'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, the westernmost corner of said 111.36 acre tract, the northernmost corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; Page 21 of 170 Ordinance Number: 2021-____ Page 13 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 54.3 acre tract, the following two (2) courses and distances: 3. S 69° 29' 55" W, a distance of 320.10' (Record: S 70° 51' 03" W, a distance of 319.99'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 4. S 69° 03' 58" W, a distance of 499.96' (Record: S 70° 29' 45" W, a distance of 500.56'), to a 1/2" iron rod located for the southernmost corner of said 104.89 acre tract, the easternmost corner of that called 33.63 acre tract of land recorded in Document No. 2004079454, Official Public Records, Williamson County, Texas, being an angle point of said 54.3 acre tract, said point being the southernmost corner of the herein described tract of land; 5. Thence, with the southwest line of said 104.89 acre tract, the northeast line of said 33.63 acre tract, N 21° 34' 01" W, a distance of 1625.97' (Record: N 20° 09' 53" W, a distance of 1624.84'), to a 1/2" iron rod located for the westernmost corner of said 104.89 acre tract, the northernmost corner of said 33.63 acre tract, being in a southeast line of that called 284.03 acre tract of land recorded in Volume 656, Page 620, Deed Records, Williamson County, Texas, said point being the westernmost corner of the herein described tract of land; 6. Thence, with a northwest line of said 104.89 acre tract, the southeast line of said 284.03 acre tract, N 69° 02' 47" E, a distance of 1795.12' (Record: N 70° 23' 23" E, a distance of 1795.28'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, an angle point of said 284.03 acre tract, an angle point of said 72.32 acre tract, said point being an angle point of the herein described tract of land; Thence, with the common boundary lines of said 104.89 acre tract and said 72.32 acre tract, the following three (3) courses and distances: 7. N 69° 38' 42" E, a distance of 1053.77' (Record: N 71° 03' 05" E, a distance of 1053.79'), to a 1" square iron pipe located for the northernmost corner of the herein described tract of land; Page 22 of 170 Ordinance Number: 2021-____ Page 14 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached 8. S 21° 18' 14" E, a distance of 554.64' (Record: S 19° 54' 18" E, a distance of 554.70'), to a 3/8" iron rod located for an angle point of the herein described tract of land; S 21° 04' 34" E, a distance of 1020.48' (Record: S 19° 42' 15" E, a distance 1020.54') to the POINT OF BEGINNING containing 104.884 acres of land Page 23 of 170 Ordinance Number: 2021-____ Page 15 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Exhibit “B” Depiction of Zone Page 24 of 170 Ordinance Number: 2021-____ Page 16 of 29 Description: __________ Case File Number: _____ Date Approved: __________ Exhibits _____ Attached Exhibit “C” Preliminary Project and Financing Plan North Georgetown Tax Increment Reinvestment Zone Preliminary Project Plan & Reinvestment Zone Financing Plan December 2021 Page 25 of 170 Ordinance Number: 2021-____ Page 17 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached Table of Contents I. Introduction A. Objectives B. TIF Financing C. Zone Description II. Project Plan A. Existing Uses and Conditions B. Proposed Uses and Conditions C. Municipal Ordinances and Agreements D. Non-Project Costs E. Relocation III. Financing Plan A. List of Estimated Project Costs B. Kind, Number, and Location of Proposed Public Improvements to be Financed by the TIRZ C. Economic Feasibility Study D. Estimated Bonded Indebtedness to be Incurred E. Time of Incurring Monetary Obligations F. Method of Financing/Sources of Revenue for Project Costs G. Current Appraised Value H. Estimated Captured Appraised Value I. Duration of the TIRZ IV. Board of Directors of the TIRZ V. List of Exhibits Page 26 of 170 Ordinance Number: 2021-____ Page 18 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached I. INTRODUCTION A. Objectives The Georgetown City Council desires to create Tax Increment Reinvestment Zone (TIRZ) #6, aka the North Georgetown TIRZ, consisting of approximately 224 acres of land generally located along IH35, north of the HWY195 intersection, pursuant to the Tax Increment Financing Act, as codified in Chapter 311 of the Texas Tax Code, as amended (the “Act”). The purpose of the TIRZ creation is to finance public infrastructure needed to develop the site for industrial and commercial use in partnership with Jackson Shaw (the Developer). The land within the proposed TIRZ has been entitled for these uses as well as a portion for multi-family. Currently, the site does not have wastewater infrastructure in place, which has impeded the development of this site and the surrounding area. The TIRZ would aid in offsetting the cost of construction of a sanitary sewer interceptor along the Dry Berry Creek bed, as outlined in the City’s wastewater master plan. The line would be constructed by the Developer to City requirements and become city-owned public infrastructure upon completion and acceptance by the City. This line would connect with the Berry Creek Interceptor, which is a current City capital improvement project. The ultimate build of the infrastructure will allow for wastewater service for a large area of the City of Georgetown spanning from HWY195 to IH35, including the proposed TIRZ. The estimated cost of the Dry Berry Creek interceptor line is approximately $10 million. The TIRZ will take effect at the adoption of the ordinance by City Council, which will set the base year at 2021 for the assessed valuation. The City will participate by contributing a portion of the incremental increase in real property ad valorem taxes following a 15-year contribution schedule that begins in 2024. The contribution schedule is 60% of the incremental tax increase in years 1-5, 55% of the incremental tax increase in years 2-10, and 50% of the incremental increase in years 11-15 with the last year of contribution being 2038. Following approval of a development agreement, the Developer will then be reimbursed for the expense of the public wastewater infrastructure construction utilizing annual payments from the TIRZ fund. The maximum amount of reimbursement is $8.5 million, or the end of the 15-year TIRZ period, whichever occurs first. The Developer must complete construction of the wastewater line and 400,000 square feet of industrial development prior to receiving reimbursement payments. The first 400,000 square feet of industrial Page 27 of 170 Ordinance Number: 2021-____ Page 19 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached development can be serviced by temporary septic until the wastewater extension is completed. All other development within the TIRZ must be serviced by the wastewater line. B. TIF Financing Tax Increment Financing (TIF) is a tool local government may use to finance public improvements within defined areas that have unique challenges or opportunities for economic development. A municipality may make an area eligible for tax increment financing by designating a reinvestment zone (TIRZ). Taxes on the appraised value of the zone in the year the zone was designated (the “base” year) continue flowing to the general funds of taxing units, but, for participating government units, all or part of the increased tax revenue due to greater real property values in the TIRZ flows to a tax increment financing fund (“TIF” or “TIRZ”) for a specified maximum term of years. Inclusion of a property in a TIF zone does not change the tax rate for any property. Tax rates in a TIF zone are the same as tax rates outside the zone and with the same set of taxing jurisdictions. Money flowing to the TIF/TIRZ is disbursed according to one or more development agreements. These are contracts between the City of Georgetown and a developer. A development agreement must accord with a TIF project plan and financing plan approved by the City Council after a recommendation by a Board of Directors as prescribed by the Act. The TIF fund may be used only as authorized by state law. Mere designation of a TIF zone is not an entitlement to future tax flow. Only if the City Council approves execution of a development agreement consistent with a TIF project plan and financing plan may cash flow from the TIF fund and then only in accord with terms of a development agreement. Page 28 of 170 Ordinance Number: 2021-____ Page 20 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached C. Zone Description The map below depicts the vicinity and boundaries of the proposed North Georgetown TIRZ. A metes and bounds description of all property located within the TIRZ is included as Exhibit 1 to this plan. Page 29 of 170 Ordinance Number: 2021-____ Page 21 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached II. PROJECT PLAN A. Existing Land Uses and Conditions The TIRZ property is approximately 224 acres and currently zoned High-Density Multi- Family (MF-2) a total of 18.874 acres, General Commercial (C-3) a total of 42.398 acres, and Industrial (IN) a total of 163.433 acres. Zoning of the property was approved at the October 26, 2021 council meeting. The property is undeveloped and predominately vacant. Page 30 of 170 Ordinance Number: 2021-____ Page 22 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached B. Proposed Land Uses and Conditions Proposed uses follow the zoning that is currently in place with approximately 1,700,000 square feet of industrial development, 392,000 square feet of commercial development, and 388 multi-family units. C. Municipal Ordinances and Agreements All property located within the TIRZ is within the corporate limits of the City of Georgetown and within the boundaries of Williamson County, Texas. It is entitled following the land use category restrictions in the City of Georgetown Unified Development Code, as of October 26, 2021. Page 31 of 170 Ordinance Number: 2021-____ Page 23 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached D. Non-Project Costs The non-project costs include the cost of all development located within the TIRZ boundary due to the TIRZ project being an off-site public wastewater improvement. Development within the TIRZ will be privately funded, and no tax increment reimbursement is expected. Non-project costs represent the expenditures estimated by the Developer necessary to complete the master plan for the site. Total real property capital investment is projected to be more than $246,000,000 by year 2026, based the developer’s estimate. E. Relocation No residential relocation will be required as part of the creation or development of the TIRZ. Page 32 of 170 Ordinance Number: 2021-____ Page 24 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached III. FINANCING PLAN A. List of Estimated Project Costs Including Administrative Expenses A breakout of the estimated costs associated with the construction of the Dry Berry Creak Interceptor wastewater line is show in the table below. In addition to the project costs, the City will also collect a one percent administration fee from the TIRZ, estimated at $850,000 over the 15-year term. Page 33 of 170 Ordinance Number: 2021-____ Page 25 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached B. Kind, Number, Location of Public Improvements to be Financed by the TIRZ The TIRZ will finance one off-site public infrastructure improvement project, named the Dry Berry Creek Interceptor (DBCI). For the TIRZ to have sanitary sewer service, over 12,000 linear feet of 36” sanitary sewer trunk line will need to be installed. This line will run along the Dry Berry Creek bed and connect to the Berry Creek Interceptor, a City-managed capital improvement project. A schematic of the line is in the graphic below. C. Economic Feasibility Study A market and economic feasibility study for the North Georgetown TIRZ was produced by Capital Market Research Group and is attached at Exhibit 2. Page 34 of 170 Ordinance Number: 2021-____ Page 26 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached D. Estimate of Bonded Indebtedness to be Incurred It is not anticipated that the City will issue debt to cover the costs of the related off-site public infrastructure improvements related to this project. The TIRZ/TIF will be reimbursement based only to the Developer. E. Time of Incurring Monetary Obligations The table below illustrates the estimated development schedule of the TIRZ site and the anticipated added value in years 2023 – 2026. The estimated contribution to the TIRZ fund each year is also shown. The calculations are based on the current real property tax rate and include an estimated inflation of 2% per year. Page 35 of 170 Ordinance Number: 2021-____ Page 27 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached F. Method of Financing/Sources of Revenue The City will establish a Tax Increment Fund (the “Fund”) for the TIRZ in the ordinance designating the TIRZ. In accordance with Section 311.013 of the Act, the City will apply into the fund a portion of the increment generated. The proposed financing plan anticipates the City will participate in the Zone by contributing a portion of the incremental increase in real property ad valorem taxes following a 15-year contribution schedule that begins in 2024. The contribution schedule is 60% of the incremental tax increase in years 1-5, 55% of the incremental tax increase in years 2-10, and 50% of the incremental increase in years 11-15 with the last year of contribution being 2038. The tax increments deposited into the Fund will be used to pay for the approved project costs in accordance with the development agreement approved by the City of Georgetown. G. Current Appraised Value The base value, from which the captured appraised value is calculated, is the total assessed taxable value of all property within the TIRZ on January 1, 2021, as shown in the rolls of the Williamson County Appraisal District. Tax Parcel Acreage Assessed Value R040489 1.92 $209,992 R040508 114.61 $11,786 R040488 102.91 $4,583 R040520 1.00 $45,898 R040496 2.80 $278,527 223.24 $550,786 Page 36 of 170 Ordinance Number: 2021-____ Page 28 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached H. Captured Appraised Value It is anticipated the taxable property values will increase approximately 2% every year. An estimate of the captured appraised value in each year of the projected life of the TIRZ is shown in the table below. I. Duration of the TIRZ The North Georgetown TIRZ is a 15-year TIRZ beginning January 1, 2024 and expiring December 31, 2038, unless sooner terminated as may be allowed by law. Page 37 of 170 Ordinance Number: 2021-____ Page 29 of 29 Description: __________ Case File Number: Date Approved: __________ Exhibits _____ Attached IV. BOARD OF DIRECTORS OF THE TIRZ The City Council will appoint the five-member board of Directors for the TIRZ to include: • Mayor • Councilmember District 5 • City Manager • Assistant City Manager – Finance & Community Services • Economic Development Director City staff will prepare (i) an Annual TIRZ Budget; (ii) an Annual Report of TIRZ activities; and (iii) an Annual Financial Statement prepared in accordance with Generally Accepted Accounting Principles for presentation to the City Council. V. LIST OF EXHIBITS • Exhibit 1 – Metes and Bounds of TIRZ • Exhibit 2 – Economic Feasibility Study Page 38 of 170 1 FIELD NOTES FOR A 119.784 ACRE TRACT OF LAND: BEING A 119.784 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 119.784 ACRE TRACT, BEING ALL OF THAT CALLED 111.36 ACRE TRACT OF LAND KNOWN AS "TRACT I ", THE REMAINING PORTION OF THAT CALLED 7.3 ACRE TRACT OF LAND KNOWN AS "TRACT II", AND ALL OF THAT CALLED 2.12 ACRE TRACT OF LAND KNOWN AS "TRACT III", RECORDED IN VOLUME 512, PAGE 71, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, AND BEING ALL OF THAT CALLED 3.05 ACRE TRACT OF LAND RECORDED IN VOLUME 545, PAGE 392, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, BEING THE SAME PROPERTY CONVEYED TO JASPER N. SUDDUTH AND WIFE, IDA P. SUDDUTH IN INSTRUMENT RECORDED IN VOLUME 512, PAGE 71 AND BEING ALL OF THE SAME PROPERTY CONVEYED TO DONALD HOYLE AND WIFE, PATSY S. HOYLE IN INSTRUMENT RECORDED IN VOLUME 545, PAGE 392; SAID 119.784 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1/2" iron rod located for the northwest corner of the remainder of said 7.3 acre tract, the northeast corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, being an angle point of that called 104.89 acre tract of land recorded in Document No. 2008016952, Official Public Records, Williamson County, Texas, said point being the northwest corner of the herein described tract of land; Thence, with the northwest lines of the remainder of said 7.3 acre tract, said 2.12 acre tract, and said 111.36 acre tract, the southeast lines of said 104.89 acre tract, the following two (2) courses and distances: 1. N 64° 22' 55" E, a distance of 197.60' (Record per Doc. No. 2008016952: N 65° 45' 36" E, a distance of 197.59'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. N 68° 12' 57" E, a distance of 1820.19' (Record per Doc. No. 2008016952: N 69° 36' 19" E, a distance of 1820.51'), to a 1" square iron pipe located for an angle point of said 111.36 acre tract, being the southeast corner of said 104.89 acre tract, the southwest corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; 3. Thence, with the northwest line of said 111.36 acre tract, the southeast line of said 72.32 acre tract, N 70° 40' 37" E, passing a 1" iron pipe located at a distance of 656.89', continuing a total distance of 659.38' (Record: N 74° 10' 00" E, a distance of 658.61')(Record per Vol. 886, Pg. 335: N 72° 57' 00" E, a distance of 658.13')(Record per Doc. No. 2006017468: N 70° 39' 41" E, a Page 39 of 170 2 distance of 659.38'), to a 1/2" iron rod located in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the northeast corner of said 111.36 acre tract, said point being the northeast corner of the herein described tract of land; 4. Thence, with the northwest right-of-way line of Interstate Highway 35 Frontage Road, the southeast line of said 111.36 acre tract, S 13° 56' 20" W, passing a TxDOT concrete monument located at a distance of 543.58', a TxDOT concrete monument located at a distance of 1000.60', a TxDOT concrete monument located at a distance of 2001.10', continuing 100.54' for a total distance of 3645.82' (Record per Doc. No. 2006017468: S 13° 56' 29" W, a distance of 3646.70'), to a calculated point in a power pole in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the southeast corner of said 111.36 acre tract, said point being the southeast corner of the herein described tract of land; 5. Thence, departing the northwest right-of-way line of Interstate Highway 35 frontage road, with the southeast lines of said 111.36 acre tract, said 2.12 acre tract, and the remainder of said 7.3 acre tract, the northwest line of that called 1.249 acre tract of land known as "Second Tract", recorded in Volume 1732, Page 249, Deed Records, Williamson County, Texas, S 67° 42' 10" W, passing a 3/8" iron rod located at a distance of 0.42' for the northeast corner of said 1.249 acre tract, a 1/2" iron rod located at a distance of 994.53' for the northwest corner of said 1.249 acre tract, continuing 56.01' for a total distance of 1050.96' (Record per Vol. 1732, Pg. 249: S 71° 00' 00" W, a distance of 990.14'), to a calculated point in the center of Dry Berry Creek, being the southwest corner of the remainder of said 7.3 acre tract, the southeast corner of that called 45.00 acre tract of land recorded in Document No. 2004002927, Official Public Records, Williamson County, Texas, being in a northwest line of that called 71.997 acre tract of land recorded in Document No. 2008000666, Official Public Records, Williamson County, Texas, said point being the southwest corner of the herein described tract of land; Thence, with the approximate center line of Dry Berry Creek, the following twelve (12) courses and distances: 6. N 18° 43' 13" W, a distance of 119.07', to a calculated point for an angle point of the herein described tract of land; Page 40 of 170 3 7. N 08° 20' 24" W, a distance of 77.91', to a calculated point for an angle point of the herein described tract of land; 8. N 06° 15' 48" E, a distance of 102.38', to a calculated point for an angle point of the herein described tract of land; 9. N 16° 24' 06" E, a distance of 224.02', to a calculated point for an angle point of the herein described tract of land; 10. N 07° 44' 03" E, a distance of 168.85', to a calculated point for an angle point of the herein described tract of land; 11. N 07° 06' 33" W, a distance of 204.47', to a calculated point for an angle point of the herein described tract of land; 12. N 11° 33' 16" W, a distance of 283.45', to a calculated point for an angle point of the herein described tract of land; 13. N 13° 30' 25" W, a distance of 113.69', to a calculated point for an angle point of the herein described tract of land; 14. N 19° 16' 42" W, a distance of 358.97', to a calculated point for an angle point of the herein described tract of land; 15. N 21° 52' 20" W, a distance of 91.57', to a calculated point for an angle point of the herein described tract of land; 16. N 32° 08' 36" W, a distance of 49.98', to a calculated point for an angle point of the herein described tract of land; 17. N 42° 07' 33" W, a distance of 44.61', to a calculated point in the center of Dry Berry Creek, being in a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, said point being an exterior corner of the herein described tract of land; 18. Thence, departing the center of Dry Berry Creek, with a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, N 62° 51' 22" E, passing a 1/2" iron rod located for reference at a distance of 30.81', continuing 52.06' for a total distance of 82.87', to a 1/2" iron rod located for an interior corner of the remainder of said 54.3 acre tract, the southeast corner of said 54.3 acre tract, said point being an interior corner of the herein described tract of land, Page 41 of 170 4 Thence, with the southwest lines of the remainder of said 7.3 acre tract, the northeast lines of said 54.3 acre tract, the following fourteen (14) courses and distances: 19. N 21° 45' 16" W, a distance of 131.35' (Record per Doc. No. 2014088568: N 20° 22' 13" W, a distance of 131.35'), to a 60D nail located for an angle point of the herein described tract of land; 20. N 20° 31' 05" W, a distance of 60.86' (Record per Doc. No. 2014088568: N 19° 06' 55" W, a distance of 60.76'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 21. N 30° 43' 16" W, a distance of 11.06' (Record per Doc. No. 2014088568: N 29° 19' 54" W, a distance of 11.05'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 22. N 22° 54' 40" W, a distance of 104.20' (Record per Doc. No. 2014088568: N 21° 31' 18" W, a distance of 104.14'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 23. N 18° 03' 10" W, a distance of 130.05' (Record per Doc. No. 2014088568: N 16° 43' 03" W, a distance of 130.08'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 24. N 23° 12' 32" W, a distance of 100.95' (Record per Doc. No. 2014088568: N 21° 53' 07" W, a distance of 101.09'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 25. N 20° 47' 10" W, a distance of 180.56' (Record per Doc. No. 2014088568: N 19° 26' 34" W, a distance of 180.48'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 26. N 22° 02' 53" W, a distance of 104.75' (Record per Doc. No. 2014088568: N 20° 35' 52" W, a distance of 104.99'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; Page 42 of 170 5 27. N 26° 22' 25" W, a distance of 33.25' (Record per Doc. No. 2014088568: N 24° 55' 24" W, a distance of 33.32'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 28. N 08° 48' 02" W, a distance of 6.36' (Record per Doc. No. 2014088568: N 07° 21' 01" W, a distance of 6.37'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 29. N 20° 14' 35" W, a distance of 16.17' (Record per Doc. No. 2014088568: N 18° 49' 16" W, a distance of 16.18'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 30. N 20° 03' 30" W, a distance of 17.68' (Record per Doc. No. 2014088568: N 18° 38' 11" W, a distance of 17.69'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 31. N 20° 06' 15" W, a distance of 231.63' (Record per Doc. No. 2014088568: N 18° 40' 56" W, a distance of 231.73'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 32. N 19° 32' 43" W, a distance of 110.22' (Record per Doc. No. 2014088568: N 18° 07' 24" W, a distance of 110.27'), to the POINT OF BEGINNING containing 119.784 acres of land. Note: The basis of bearing was established using the Trimble VRS Network, NAD (83), Texas State Plane Coordinate System, Central Zone, 4203, US Survey Foot, Grid. A survey plat was prepared by a separate document. Page 43 of 170 6 FIELD NOTES FOR A 104.884 ACRE TRACT OF LAND: BEING A 104.884 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT, BEING ALL OF THAT CALLED 104.89 ACRE TRACT OF LAND RECORDED IN DOCUMENT NO. 2020151834, OFFICIAL PUBLIC RECORDS, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1" square iron pipe located for the easternmost corner of said 104.89 acre tract, the southernmost corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, being an angle point of that called 111.36 acre tract of land known as "Tract 1", recorded in Volume 512, Page 71, Deed Records, Williamson County, Texas, said point being the easternmost corner of the herein described tract of land; Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 111.36 acre tract, the following two (2) courses and distances: 1. S 68° 12' 57" W, a distance of 1820.19' (Record: S 69° 36' 19" W, a distance of 1820.51'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. S 64° 22' 55" W, a distance of 197.60' (Record: S 65° 45' 36" W, a distance of 197.59'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, the westernmost corner of said 111.36 acre tract, the northernmost corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; Page 44 of 170 7 Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 54.3 acre tract, the following two (2) courses and distances: 3. S 69° 29' 55" W, a distance of 320.10' (Record: S 70° 51' 03" W, a distance of 319.99'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 4. S 69° 03' 58" W, a distance of 499.96' (Record: S 70° 29' 45" W, a distance of 500.56'), to a 1/2" iron rod located for the southernmost corner of said 104.89 acre tract, the easternmost corner of that called 33.63 acre tract of land recorded in Document No. 2004079454, Official Public Records, Williamson County, Texas, being an angle point of said 54.3 acre tract, said point being the southernmost corner of the herein described tract of land; 5. Thence, with the southwest line of said 104.89 acre tract, the northeast line of said 33.63 acre tract, N 21° 34' 01" W, a distance of 1625.97' (Record: N 20° 09' 53" W, a distance of 1624.84'), to a 1/2" iron rod located for the westernmost corner of said 104.89 acre tract, the northernmost corner of said 33.63 acre tract, being in a southeast line of that called 284.03 acre tract of land recorded in Volume 656, Page 620, Deed Records, Williamson County, Texas, said point being the westernmost corner of the herein described tract of land; 6. Thence, with a northwest line of said 104.89 acre tract, the southeast line of said 284.03 acre tract, N 69° 02' 47" E, a distance of 1795.12' (Record: N 70° 23' 23" E, a distance of 1795.28'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, an angle point of said 284.03 acre tract, an angle point of said 72.32 acre tract, said point being an angle point of the herein described tract of land; Thence, with the common boundary lines of said 104.89 acre tract and said 72.32 acre tract, the following three (3) courses and distances: 7. N 69° 38' 42" E, a distance of 1053.77' (Record: N 71° 03' 05" E, a distance of 1053.79'), to a 1" square iron pipe located for the northernmost corner of the herein described tract of land; Page 45 of 170 1 8. S 21° 18' 14" E, a distance of 554.64' (Record: S 19° 54' 18" E, a distance of 554.70'), to a 3/8" iron rod located for an angle point of the herein described tract of land; S 21° 04' 34" E, a distance of 1020.48' (Record: S 19° 42' 15" E, a distance 1020.54') to the POINT OF BEGINNING containing 104.884 acres of land Page 46 of 170 North Georgetown Business Park Economic Analysis for Potential TIRZ District Prepared for Ms. Laurie Brewer Assistant City Manager City of Georgetown 113 E. 8th Street Georgetown, Texas 78627 By Capitol Market Research, Inc. 1102 West Avenue, Suite 100 Austin, Texas 78701 On December 7, 2021 DR A F T Page 47 of 170 Industrial Sq. Ft.Multi-Family Units Retail Sq.Ft. 2021 0 0 0 2022 236,000 0 0 2023 0 0 25,000 2024 0 0 25,000 2025 50,000 0 25,000 2026 52,000 300 25,000 2027 56,000 0 25,000 2028 61,000 0 25,000 2029 65,000 0 0 2030 68,000 0 0 2031 79,000 0 0 2032 84,000 0 0 2033 89,000 0 0 2034 95,000 0 0 2035 100,000 0 0 2036 107,000 0 0 Total 1,142,000 300 150,000 Source: Capitol Market Research, December 2021 Development Summary.xls Summary of Absorption estimates by property type Table (1) Absorption Summary North Georgetown Business Park Year Absorption DR A F T Page 48 of 170 Land Use Category Taxable Value Square Footage Value Per Sq.Ft. Number of Units Value per Unit Industrial Space $41,273,584 502,345 $82.16 n.a.n.a. Apartments $369,592,735 2,135,606 $173.06 2,093 $176,585 Multi-tenant Retail $91,576,160 548,860 $166.85 n.a.n.a. development summary.xls Source: WCentral Appraisal District 2020 Taxable Values Sample of Existing Buildings in Georgetown Selected and compiled by Capitol Market Research, December 2021 Table (2) Average Building Value by Type Georgetown Market Area DR A F T Page 49 of 170 Year Industrial Absorption in SF Industrial Assessed Value Multi-Family Absorption in Units Multi-Family Assessed Value Retail Absorption in SF Retail Assessed Value Planned Development Value 2021 0 $0 0 $0 0 $0 $0 2022 236,000 $19,352,000 0 $0 0 $0 $19,352,000 2023 0 $0 0 $0 25,000 $4,175,000 $4,175,000 2024 0 $0 0 $0 25,000 $4,175,000 $4,175,000 2025 50,000 $4,100,000 0 $0 25,000 $4,175,000 $8,275,000 2026 52,000 $4,264,000 300 $52,975,500 25,000 $4,175,000 $61,414,500 2027 56,000 $4,592,000 0 $0 25,000 $4,175,000 $8,767,000 2028 61,000 $5,002,000 0 $0 25,000 $4,175,000 $9,177,000 2029 65,000 $5,330,000 0 $0 0 $0 $5,330,000 2030 68,000 $5,576,000 0 $0 0 $0 $5,576,000 2031 79,000 $6,478,000 0 $0 0 $0 $6,478,000 2032 84,000 $6,888,000 0 $0 0 $0 $6,888,000 2033 89,000 $7,298,000 0 $0 0 $0 $7,298,000 2034 95,000 $7,790,000 0 $0 0 $0 $7,790,000 2035 100,000 $8,200,000 0 $0 0 $0 $8,200,000 2036 107,000 $8,774,000 0 $0 0 $0 $8,774,000 Total 1,142,000 $93,644,000 300 $52,975,500 150,000 $25,050,000 $139,607,500 Source: Capitol Market Research, December 2021 Development Summary.xls Value Added by Property Type North Georgetown Business Park Table (3) DR A F T Page 50 of 170 Year GTWN Taxable Value (January 1) Planned Development Value GTWN Taxable Value (December 31) Inflated Value at (2.5%)TIRZ Tax Revenue 2021 $550,786 $0 $550,786 $564,556 $2,264 2022 $564,556 $19,352,000 $19,916,556 $20,414,470 $81,862 2023 $20,414,470 $4,175,000 $24,589,470 $25,204,206 $101,069 2024 $25,204,206 $4,175,000 $29,379,206 $30,113,686 $120,756 2025 $30,113,686 $8,275,000 $38,388,686 $39,348,404 $157,787 2026 $39,348,404 $61,414,500 $100,762,904 $103,281,976 $414,161 2027 $103,281,976 $8,767,000 $112,048,976 $114,850,201 $460,549 2028 $114,850,201 $9,177,000 $124,027,201 $127,127,881 $509,783 2029 $127,127,881 $5,330,000 $132,457,881 $135,769,328 $544,435 2030 $135,769,328 $5,576,000 $141,345,328 $144,878,961 $580,965 2031 $144,878,961 $6,478,000 $151,356,961 $155,140,885 $622,115 2032 $155,140,885 $6,888,000 $162,028,885 $166,079,607 $665,979 2033 $166,079,607 $7,298,000 $173,377,607 $177,712,047 $712,625 2034 $177,712,047 $7,790,000 $185,502,047 $190,139,598 $762,460 2035 $190,139,598 $8,200,000 $198,339,598 $203,298,088 $815,225 2036 $203,298,088 $8,774,000 $212,072,088 $217,373,890 $871,669 Total $1,634,474,679 $171,669,500 $1,806,144,179 $7,423,704 Source: Capitol Market Research, December 2021 Development Summary.xls Tax revenue assumes the current City of Georgetown tax rate of $0.4010 Table (4) Projected Tax Values 2021 - 2036 North Georgetown Business Park DR A F T Page 51 of 170 Map No.Name Address Developer Name Size Status 1 3033 Airport Road 3033 Airport Road Texas Outdoor Power 110,000 Approved 2 Blue Springs Business Park 2900 S US Hwy 183 Molto properties 604,064 Submitted 3 Chula Caliza Texas 195 Centric Commercial 203,125 Approved 4 Gateway 35 2550 North IH-35 Titan Development 1,133,530 Construction 5 Georgetown Logistics Park Aviation Drive Stonelake Capital 618,169 Approved 6 GTX Logistic Park 900 FM 972 Colliers International 3,434,782 Planned 7 Longhorn Junction Logistics Ctr SE Inner Loop Hilco Real Estate 447,000 Submitted 8 North Georgetown Business Pk 4811-4815 N IH-35 Jackson Shaw 1,540,260 Submitted 9 NorthPark35 101 Velocity Drive Titan Development 503,730 Construction 10 Woodgate Corporate Park 4045 Airport Road Cantera Real Estate Group 116,624 Construction Total Square Feet 8,711,284 Source: Capitol Market Research, Georgetown City Records and Developer Interviews, December 2021 compsites_ind_gtn_2021.xls Multi-Tenant Industrial Buildings in Development Table (5) Georgetown, Texas DR A F T Page 52 of 170 !( !( !( !(!( !( !( !( !(!( GEORGETOWNGEORGETOWN §¨¦35 ¬«130 C R 1 0 7 ¬«29 FM 972 WIL L I A M S D R NE I n n e r L o o p SE Inner Loo p ¬«1460 Airp o r t R d 9 8 7 6 5 4 3 2 1 10 Date: December 2021Path: C:\GIS\Projects\2021\The Triangle Georgetown\CompInd.mxd Georgetown Market Area:Planned Industrial ±0 0.35 0.7 Miles Key Project Name 1 3033 Airport Road 2 Blue Springs Business Park 3 Chula Caliza 4 Gateway 35 5 Georgetown Logistics Park 6 GTX Logistic Park 7 Longhorn Junction Logistics Ctr 8 North Georgetown Business Pk 9 NorthPark35 10 Woodgate Corporate Park !(Comparable Industrial DR A F T Page 53 of 170 Map No.Name Sq.Ft.First Bldg. Delivered 2021 2022 2023 2024 2025 Future 1 3033 Airport Road 110,000 tbd ...............110,000 2 Blue Springs Business Park 604,064 Mar-22 ...604,064 ............ 3 Chula Caliza 203,125 Aug-22 ...40,625 .........162,500 4 Gateway 35 1,133,530 Jun-22 ...294,250 .........839,280 5 Georgetown Logistics Park 618,169 Mar-23 ......495,450 ......122,719 6 GTX Logistic Park 3,434,782 tbd ...............3,434,782 7 Longhorn Junction Logistics Ctr 447,000 tbd ...............447,000 8 North Georgetown Business Pk 1,540,260 Sep-22 ...236,000 .........595,347 9 NorthPark35 503,730 Oct-21 331,030 172,700 ............ 10 Woodgate Corporate Park 116,624 Mar-22 ...116,624 ............ Total Square Feet 8,711,284 331,030 1,464,263 495,450 0 0 5,711,628 Source: Capitol Market Research, Georgetown City Records and Developer Interviews, December 2021 compsites_ind_gtn_2021.xls Table (6) Industrial Project Timing Georgetown, Texas DR A F T Page 54 of 170 MSA Annual Demand Market Area % Demand (Sq.Ft.) Additions (Sq.Ft.)Capture Rate Competitive Capture Rate Blended Capture Rate Absorption (Sq.Ft.) Cumulative Absorption (Sq.Ft.) 2021 2,368,000 11.2%265,216 331,030 17.7%30.0%23.8%63,229 63,229 2022 3,123,200 11.6%362,291 1,464,263 17.7%30.7%24.2%87,580 150,809 2023 2,179,200 12.0%261,504 495,450 17.7%31.3%24.5%64,087 214,897 2024 1,788,800 12.4%221,811 0 17.7%32.0%24.8%55,099 269,996 2025 1,539,200 12.8%197,018 0 17.7%32.7%25.2%49,597 319,593 2026 1,552,000 13.2%204,864 0 17.7%33.3%25.5%52,255 371,848 2027 1,587,200 13.6%215,859 216,000 17.7%34.0%25.8%55,779 427,627 2028 1,651,200 14.0%231,168 231,000 17.7%34.7%26.2%60,506 488,133 2029 1,705,600 14.4%245,606 246,000 17.7%35.3%26.5%65,104 553,237 2030 1,721,600 14.8%254,797 255,000 17.7%36.0%26.8%68,389 621,626 2031 1,907,200 15.2%289,894 290,000 17.7%36.7%27.2%78,776 700,402 2032 1,955,200 15.6%305,011 305,000 17.7%37.3%27.5%83,900 784,302 2033 2,000,000 16.0%320,000 320,000 17.7%38.0%27.8%89,090 873,392 2034 2,048,000 16.4%335,872 336,000 17.7%38.7%28.2%94,628 968,020 2035 2,096,000 16.8%352,128 352,000 17.7%39.3%28.5%100,382 1,068,402 2036 2,147,200 17.2%369,318 369,000 17.7%40.0%28.8%106,514 1,174,916 Total 4,432,358 5,210,743 26.5%1,174,916 Source: Capitol Market Research, Georgetown City Records and Developer Interviews, December 2021 compsites_ind_2020.xls Table (7) Industrial Demand Forecast Georgetown and North Georgetown Business Park Year SubjectMarket Area DR A F T Page 55 of 170 Subject Demand Cumulative Demand New Industrial Space Added Cumulative Industrial SF Added Cumulative Demand less SF Added 2021 63,229 63,229 0 0 63,229 2022 87,580 150,809 236,000 236,000 (85,191) 2023 64,087 214,897 0 236,000 (21,103) 2024 55,099 269,996 0 236,000 33,996 2025 49,597 319,593 50,000 286,000 33,593 2026 52,255 371,848 52,000 338,000 33,848 2027 55,779 427,627 56,000 394,000 33,627 2028 60,506 488,133 61,000 455,000 33,133 2029 65,104 553,237 65,000 520,000 33,237 2030 68,389 621,626 68,000 588,000 33,626 2031 78,776 700,402 79,000 667,000 33,402 2032 83,900 784,302 84,000 751,000 33,302 2033 89,090 873,392 89,000 840,000 33,392 2034 94,628 968,020 95,000 935,000 33,020 2035 100,382 1,068,402 100,000 1,035,000 33,402 2036 106,514 1,174,916 107,000 1,142,000 32,916 Total 1,174,916 1,142,000 Capitol Market Research, December 2021 compsites_ind_2020.xls Annual Demand is from Table (7). Build out estimated by CMR. Table (8) Industrial Absorption Forecast North Georgetown Business Park Year Subject DR A F T Page 56 of 170 Map No Project Address Units Developer Status Zoning 1 Allora North Georgetown 2815 N Austin Avenue 432 Trammel Crow Res.Construction C-3 2 Alta Austin Avenue 2601 N Austin Avenue 312 Wood Partners Construction MF-2 3 Alta Berry Creek 2201 SH 195 300 Wood Partners Submitted PUD 4 Arco and Pilare 2510 Bell Gin Road 350 KCG Development Approved PUD 5 Ascend Westinghouse 500 Westinghouse Rd.300 DHI Communities Construction PUD 6 Chapel Hill Apartments 401 Westinghouse Rd.324 Duke Companies Construction ETJ 7 Georgetown Heights (BFR)512 Northwood Drive 100 Wan Bridge Construction TF 8 Morgan Georgetown 5400 North Mays Street 336 Morgan Group Construction PUD 9 North Gtwn Business Park 4811-4815 N Ih-35 300 Jackson Shaw Planned MF-2 10 Residences at Stillwater (AH)1500 NE Inner Loop Rd 192 Pedcor Construction MF-2 11 Summit Lofts 1500 Rivery Blvd 256 TAC, Inc.Construction PUD 12 Vida Apartments (MI)2900 NE Inner Loop 124 BT Cobb Development Construction MF-1 13 Villas of Georgetown 516 Wolf Ranch Pkwy 288 Western Securities Approved C-3 14 Windmill Hill Apartments 1221 Westinghouse Rd.350 Mid-America Apts Construction MF-2 15 Wolf Ranch II 1845 W University Ave 321 McCann Realty Construction PUD Total Units 4,285 Source: Capitol Market Research, Review of City records, developer interviews, December 2021 compsite_apt_gtn_2021.xls Table (9) Multi-Family Projects in Development Georgetown Market Area DR A F T Page 57 of 170 !(!( !( !( !( !( !( !( !( !( !( !( !( !( !( GEORGETOWNGEORGETOWN ¬«130 C R 1 1 1 F M 1 4 6 0 C R 1 1 0 ¬«29 FM 972 F M 2 2 4 3 Lake Georgetown WIL L I A M S D R NE I n n e r L o o p ¬«1460 SE Inner Loo p Airp o r t R d 9 8 7 6 5 4 3 21 15 14 13 12 11 10 Date: December 2021Path: C:\GIS\Projects\2021\The Triangle Georgetown\MultiFamGTN.mxd Georgetown Market Area:Planned Apartments ±0 0.4 0.8 Miles Key Project Name 1 Allora North Georgetown 2 Alta Austin Avenue 3 Alta Berry Creek 4 Arco and Pilare 5 Ascend Westinghouse 6 Chapel Hill Apartments 7 Georgetown Heights 8 Morgan Georgetown 9 North Georgetown Business Pk 10 Residences at Stillwater 11 Summit Lofts 12 Vida Apartments 13 Villas of Georgetown 14 Windmill Hill Apartments 15 Wolf Ranch II !(Construction !(Planned DR A F T Page 58 of 170 Map No.Project Name First Unit Delivery Units Planned 2021 2022 2023 2024 2025 Future 1 Allora North Georgetown Sep-22 432 ...200 232 ......... 2 Alta Austin Avenue Feb-22 312 ...312 ............ 3 Alta Berry Creek Feb-23 300 ......300 ......... 4 Arco and Pilare Mar-23 350 ......300 50 ...... 5 Ascend Westinghouse Jan-23 300 ......300 ......... 6 Chapel Hill Apartments Mar-22 324 ...324 ............ 7 Georgetown Heights (BFR)Mar-22 100 ...100 ............ 8 Morgan Georgetown Oct-22 336 ...120 216 ......... 9 North Gtwn Business Park Jan-25 300 ............300 ... 10 Residences at Stillwater (AH)May-21 192 192 ............... 11 Summit Lofts Feb-22 256 ...256 ............ 12 Vida Apartments (MI)Oct-22 124 ...62 62 ......... 13 Villas of Georgetown Mar-23 288 ......288 ......... 14 Windmill Hill Apartments Feb-22 350 ...350 ............ 15 Wolf Ranch II Sep-22 321 ...160 161 ......... 4,285 192 1,884 1,859 50 300 0 592 640 692 747 805 400 (1,244)(1,167)697 ... Source: Capitol Market Research, Review of City records, developer interviews, December 2021 compsite_apt_gtn_2021.xls Annual Excess (shortage) of Demand: Table (10) Multi-Family Project Timing Georgetown Market Area Total New Units: Demand: DR A F T Page 59 of 170 Demand Additions Proportional Capture Rate Competitive Capture Rate Blended Capture Rate Subject Demand Cumulative Unit Demand 2021 393 192 7.0%15.0%11.0%43 43 2022 409 1,884 7.0%15.0%11.0%45 88 2023 427 1,859 7.0%15.0%11.0%47 135 2024 445 50 7.0%15.0%11.0%49 184 2025 465 0 7.0%15.0%11.0%51 235 2026 485 480 7.0%15.0%11.0%53 288 2027 505 510 7.0%15.0%11.0%56 344 2028 528 530 7.0%15.0%11.0%58 402 2029 551 550 7.0%15.0%11.0%61 463 2030 575 570 7.0%15.0%11.0%63 526 2031 599 600 7.0%15.0%11.0%66 592 2032 624 620 7.0%15.0%11.0%69 661 2033 650 650 7.0%15.0%11.0%72 733 2034 676 680 7.0%15.0%11.0%74 807 2035 703 700 7.0%15.0%11.0%77 884 2036 731 730 7.0%15.0%11.0%80 964 Total 8,765 10,605 11.0%964 Capitol Market Research, December 2021 compsite_apt_gtn_2021.xls Note: Market Area forecasted apartment demand from Table (9), supply based on currently under construction product listed in Table (10), approximating demand starting in 2024. Subject Capture Rate based on the percentage of mixed commercial land in subject as a percentage of similar land in five other mixed-use communities in the market area, and the Competitive Rate as established by CMR. Table (11) Multi-Family Housing Demand Forecast Market Area and Subject demand Year Market Area Subject DR A F T Page 60 of 170 Subject Demand Cumulative Demand New TIRZ Units Added Cumulative Units Added Cumulative Demand less Units Added 2021 43 43 0 0 43 2022 45 88 0 0 88 2023 47 135 0 0 135 2024 49 184 0 0 184 2025 51 235 0 0 235 2026 53 288 300 300 (12) 2027 56 344 0 300 44 2028 58 402 0 300 102 2029 61 463 0 300 163 2030 63 526 0 300 226 2031 66 592 0 300 292 2032 69 661 0 300 361 2033 72 733 0 300 433 2034 74 807 0 300 507 2035 77 884 0 300 584 2036 80 964 0 300 664 Total 964 300 Capitol Market Research, Decmber 2021 compsite_apt_gtn_2021.xls Annual Demand is from Table (11). The delivery schedule was estimated by CMR. Table (12) Multi- Family Housing Absorption Forecast North Georgetown Business park Year Subject DR A F T Page 61 of 170 Map No Name Address Developer / Broker Size Anchor Status 1 Bluebonnet Plaza 1310 West University Ave JLL 100,000 Academy Sports Construction 2 Cedar Breaks West 4600 Williams Dr Durham & Bassett 115,000 Chase Bank Construction 3 North Gtwn Business Park 4811-4815 N. IH-35 Jackson Shaw 150,000 tbd Planned 4 WestingHouse & A.W. Grimes 3900 FM 1460 Resolut RE 38,650 tbd Planned 5 Westinghouse Rd Corp Cntr 1200 Westinghouse Rd TIG Realtors 40,000 tbd Planned 6 Wolf Crossing 916 West University Dr.JLL 142,900 tbd Construction 7 Wolf Lakes Village 1010 West University Dr.Wolf Lakes LP 521,377 HEB Planned 8 Woodlake Crossing 4720 Williams Dr ORYX 21,183 tbd Construction Total Square Feet 1,129,110 Source: Capitol Market Research, City of Georgetown site plans, developer interviews, December 2021 compsite_retail.xls Table (13) Planned & Under Construction Retail Projects Georgetown Market Area DR A F T Page 62 of 170 !( !( !( !( !( !( !( !( GEORGETOWNGEORGETOWN §¨¦35 ¬«130 F M 1 4 3 1 C R 1 1 1 F M 1 4 6 0 C R 1 1 0 C R 1 0 7 ¬«29 F M 2 2 4 3 Lake Georgetown WIL L I A M S D R NE I n n e r L o o p SE Inner Loo p ¬«1460 Airp o r t R d 8 7 6 5 4 3 2 1 Date: December 2021Path: C:\GIS\Projects\2021\The Triangle Georgetown\CompRet.mxd Georgetown Market Area:Planned Retail ±0 0.4 0.8 Miles Key Project Name 1 Bluebonnet Plaza 2 Cedar Breaks West 3 North Gtwn Business Park 4 Westinghouse & A.W. Grimes 5 Westinghouse Rd Corp Cntr 6 Wolf Crossing 7 Wolf Lakes Village 8 Woodlake Crossing !(Planned Retail DR A F T Page 63 of 170 Map No.Name Size 2021 2022 2023 2024 Future 1 Bluebonnet Plaza 100,000 …..…..…..…..100,000 2 Cedar Breaks West 115,000 …..…..…..…..115,000 3 North Gtwn Business Park 150,000 …..…..…..…..150,000 4 WestingHouse & A.W. Grimes 38,650 …..…..…..…..38,650 5 Westinghouse Rd Corp Cntr 40,000 …..…..…..…..40,000 6 Wolf Crossing 142,900 …..32,000 …..…..110,900 7 Wolf Lakes Village 521,377 …..…..117,000 …..404,377 8 Woodlake Crossing 21,183 …..…..…..…..….. Total 1,129,110 0 32,000 117,000 0 958,927 Source: Capitol Market Research, City of Georgetown site plans, developer interviews, December 2021 compsite_retail.xls Table (14) Planned Retail Project Timing Georgetown Market Area DR A F T Page 64 of 170 Demand in Sq.Ft.Additions Proportional Capture Rate Competitive Capture Rate Blended Capture Rate Subject Demand Cumulative Unit Demand 2021 122,369 0 13.3%20.0%16.6%20,365 20,365 2022 125,333 32,000 13.3%20.0%16.6%20,858 41,223 2023 128,719 117,000 13.3%20.0%16.6%21,422 62,645 2024 132,093 0 13.3%20.0%16.6%21,983 84,628 2025 135,825 136,000 13.3%20.0%16.6%22,604 107,232 2026 139,433 139,000 13.3%20.0%16.6%23,205 130,437 2027 143,010 143,000 13.3%20.0%16.6%23,800 154,237 2028 146,872 147,000 13.3%20.0%16.6%24,443 178,680 2029 150,817 151,000 13.3%20.0%16.6%25,100 203,780 2030 154,733 155,000 13.3%20.0%16.6%25,751 229,531 2031 158,603 159,000 13.3%20.0%16.6%26,395 255,926 2032 162,438 162,000 13.3%20.0%16.6%27,034 282,960 2033 166,221 166,000 13.3%20.0%16.6%27,663 310,623 2034 169,725 170,000 13.3%20.0%16.6%28,246 338,869 2035 173,371 173,000 13.3%20.0%16.6%28,853 367,722 2036 177,166 177,000 13.3%20.0%16.6%29,485 397,207 Total 2,386,727 2,027,000 16.6%397,207 Capitol Market Research, December 2021 compsite_apt_gtn_2021.xls Table (15) Retail Demand Forecast Market Area and Subject Demand Year Market Area Subject DR A F T Page 65 of 170 Subject Demand Cumulative Demand New Retail Space Added Cumulative Industrial SF Added Cumulative Demand less SF Added 2021 20,365 20,365 0 0 20,365 2022 20,858 41,223 0 0 41,223 2023 21,422 62,645 25,000 25,000 37,645 2024 21,983 84,628 25,000 50,000 34,628 2025 22,604 107,232 25,000 75,000 32,232 2026 23,205 130,437 25,000 100,000 30,437 2027 23,800 154,237 25,000 125,000 29,237 2028 24,443 178,680 25,000 150,000 28,680 2029 25,100 203,780 0 150,000 53,780 2030 25,751 229,531 0 150,000 79,531 2031 26,395 255,926 0 150,000 105,926 2032 27,034 282,960 0 150,000 132,960 2033 27,663 310,623 0 150,000 160,623 2034 28,246 338,869 0 150,000 188,869 2035 28,853 367,722 0 150,000 217,722 2036 29,485 397,207 0 150,000 247,207 Total 397,207 150,000 Capitol Market Research, December 2021 compsites_ind_2020.xls Annual Demand is from Table (7). Build out estimated by CMR. Table (16) Retail Absorption Forecast North Georgetown Business Park Year Subject DR A F T Page 66 of 170 Building Name Street Address City County Completion Date Building Sq.Ft. Assessed Value Value per Sq.Ft. Tasus Corp 211 Tasus Way Georgetown Williamson 2005 95,810 $8,966,899 $93.59 Gtwn Industrial Park 6757 Airport Blvd.Georgetown Williamson 1983 157,620 $10,379,841 $65.85 Tx Electric COOP 100 Coop Way Georgetown Williamson 1998 133,326 $9,374,093 $70.31 Oakmont Center Sec 7 33 Cypress Blvd.Round Rock Williamson 2001 74,880 $8,813,014 $117.70 Oakmont Center Sec 7 29 Cypress Blvd.Round Rock Williamson 1999 40,709 $3,739,737 $91.87 502,345 41,273,584 $82.16 Community Name Street Address City Completion Date Total No. Units Building Sq.Ft. Assessed Value Value Per Unit Villages of Georgetown 1400 Westinghouse Rd.Georgetown 2017 410 354,066 $81,333,904 $198,375 Retreat at Wolf Ranch 2323 Wolf Ranch Pky Georgetown 2017 303 268,556 $49,000,000 $161,716 Bexley Wolf Ranch 2300 Wolf Ranch Pky Georgetown 2016 332 307,473 $53,165,000 $160,136 Carroll at Rivery Ranch 800 Wolf Ranch Georgetown 2018 360 495,688 $69,079,642 $191,888 Mansions 54 5401 N Mays St Georgetown 2020 418 467,100 $70,708,484 $169,159 Williamson at the Overlook 1 Gabriels Bluff Dr Georgetown 2020 270 242,723 $46,305,705 $171,503 2,093 2,135,606 $369,592,735 $176,585 Building Name Street Address City County Completion Date Building Sq.Ft. Assessed Value Value per Sq.Ft. The Summit at Rivery Park 1503 Rivery Blvd Georgetown Williamson 2017 66,000 $19,268,217 $291.94 Georgetown Crossing 901 S IH 35 Georgetown Williamson 2000 72,613 $10,163,192 $139.96 Oak Meadows Marketplace 5731 Williams Drive Georgetown Williamson 2018 77,050 $13,902,940 $180.44 Williamsburg Village 3010 WILLIAMS DR Georgetown Williamson 1990 106,610 $12,549,539 $117.71 Georgetown HEB 4500 WILLIAMS DR Georgetown Williamson 2001 109,569 $17,732,555 $161.84 Republic Square 900 N AUSTIN AVE Georgetown Williamson 1986 117,018 $17,959,717 $153.48 548,860 $91,576,160 $166.85 Values.xlxsSource: WCAD taxable values for 2021 Assessed Values by Property Type 2021 Table (17) Industrial Assessed Values Apartment Community Assessed Values Retail Assessed Values DR A F T Page 67 of 170 North Georgetown TIRZ Michaela Dollar December 17, 2021 Page 68 of 170 2 Caption Second reading of an ordinance to consider the designation of the Tax Increment Reinvestment Zone (TIRZ) Number Six (North Georgetown) under Chapter 311 of the Texas Code for approximately 224 acres of land in the City Limits, generally located on the west of IH35, north of the HWY195 intersection and the adoption of a Preliminary Project Plan and Financing Plan for the proposed TIRZ Page 69 of 170 3 Purpose of a TIRZ and TIF •Tax Increment Financing (TIF) is a tool local governments may use to finance public improvements in defined areas •Area must have unique challenges and/or opportunities for economic development, typically related to public infrastructure •Municipality makes an area eligible for increment financing by designating a tax increment reinvestment zone (TIRZ) •Zone is designated following a public hearing and adoption of an ordinance that includes a preliminary project plan and financing plan Page 70 of 170 4 How it Works •Adoption of an ordinance sets a “base year” for the assessed value of the property located within the TIRZ •Taxes on the appraised value of the base year continue to flow to the general funds of the taxing entities •All or a portion of the incremental increase in real property tax revenue due to great property values in the TIRZ is held in a tax increment financing fund •Money from the fund is then dispersed according to a developer agreement •Developer agreements must follow the approved project and financing plan included in the ordinance Page 71 of 170 5 North Georgetown TIRZ Location ~224 acres Page 72 of 170 6 Proposed Concept Commercial Frontage ~392K SF Multi- Family 388 Units Industrial Phase 1 ~400K SF Industrial Phase 2 & 3 ~1.3MM SF •Jackson Shaw is looking to develop property, beginning with Phase I in 2022 •Estimated assessed value increase of $246,700,000 Page 73 of 170 7 Proposed Concept Renderings Flex Industrial Rear-Load Concept Commercial Frontage Concept Page 74 of 170 8 TIRZ Financed Project •TIRZ will finance one off-site public infrastructure improvement project, the Dry Berry Creek Interceptor, to bring sanitary sewer service to the site •Over 12,000 linear feet of 36” sanitary sewer trunk line •Line will run along the Dry Berry Creek bed to connect with the Berry Creek Interceptor •Jackson Shaw will construct the line •Estimated cost of the project is approximately $10,000,000 Page 75 of 170 9 Proposed Financing Structure •Creation of a TIRZ with a 2021 “base year” •City of Georgetown will contribute to the fund based on a 15-year schedule, beginning in 2024 and ending in 2038 •Years 1-5 = 60% contribution •Years 6-10 = 55% contribution •Years 11-15 = 50% contribution •Jackson Shaw will be reimbursed from the TIRZ fund up to $8,500,000 for construction of the public infrastructure project Page 76 of 170 10 Estimated TIRZ Revenue Schedule *Assumes a 2% inflation per year Page 77 of 170 11 Proposed Board of Directors •The City Council will appoint the five-member board of Directors for the TIRZ to include: •Mayor •Councilmember District 5 •City Manager •Assistant City Manager –Finance & Community Services •Economic Development Director •City staff will prepare (i) an Annual TIRZ Budget; (ii) an Annual Report of TIRZ activities; and (iii) an Annual Financial Statement prepared in accordance with Generally Accepted Accounting Principles for presentation to the City Council. Page 78 of 170 12 Timeline •December 14, 2021 •Public Hearing •First Reading of the Ordinance •December 17, 2021 (Special Meeting) •Second Reading of the Ordinance •TIRZ Reimbursement Agreement •GTEC Agreement Page 79 of 170 13 Second Reading of Ordinance An Ordinance of the City Council of the City of Georgetown, Texas, designating a certain area within the City of Georgetown, Williamson County, Texas, as Tax Increment Financing Reinvestment Zone Number Six (“North Georgetown TIRZ”); establishing the boundaries of such Zone; creating a Board of Directors for said Reinvestment Zone, and other matters related thereto; containing findings; providing a repealing clause; providing a severability clause; and providing an effective date. Page 80 of 170 City of Georgetown, Texas City Council Special Meeting D ecember 17, 2021 S UBJEC T: Consideration of the TIF Zone #6 (North Georgetown TIRZ) Infrastructure Reimbursement Agreement between the City of Georgetown and J SACQ/Georgetown, LP -- Michaela Dollar, Economic Development Director I T EM S UMMARY: Developer J ackson Shaw (J SACQ) seeks to purchase and develop approximately 224 acres of property in Georgetown city limits, located north of the IH35 and H W Y195 intersection. The company plans to develop the land into a master- planned multi-use development that would consist of approximately 1.7 M M square feet of industrial development, 392,000 square feet of commercial development, and 388 multi-family units once fully built out. To develop the site, J ackson Shaw must construct a significant amount of public infrastructure improvements, including design and construction of over 12,000 linear feet of 36” sanitary sewer trunk line (the Dry Berry Creek Interceptor) to connect with the upcoming Berry Creek Interceptor capital improvement project. The project is estimated to cost $10,000,000. Staff has proposed the creation of the North Georgetown Tax Increment Reinvestment Zone (TIRZ) to utilize a Tax Increment Finance (TIF) fund to reimburse the cost of construction of the public sanitary sewer line. J ackson Shaw must complete construction of the line to City standards as well as 400,000 square feet of speculative industrial development that will be served by temporary septic. The developer must also invest a minimum of $24 M M in capital expenditures on- site and complete construction by J une 30, 2025. Following completion of the improvements, J ackson Shaw will be eligible to receive annual payments from the North Georgetown TIRZ fund to reimburse for the cost of the line. These payments will be based on the incremental increase in property tax contribution to the fund and will not exceed $8.5 M M total over the life of the 15-year TIR Z, which concludes at the end of tax year 2038. F I NANC I AL I MPAC T: A maximum of $8,500,000, financed by the tax increment generated within the TIR Z boundaries. S UBMI T T ED BY: Michaela Dollar, Economic Development Director AT TAC HMENT S : Description North G eorgetown T I R Z Inc entive Agreements P resentation G eorgetown – J S AC Q Infras tructure R eimbursement Agreement Page 81 of 170 North Georgetown TIRZ Development Incentive Agreements Michaela Dollar December 14, 2021 Page 82 of 170 2 Captions C.Consideration of the TIF Zone #6 (North Georgetown TIRZ) Infrastructure Reimbursement Agreement between the City of Georgetown and JSACQ / Georgetown, LP D.Consideration of an economic development incentive agreement between Georgetown Transportation Enhancement Corporation (GTEC) and JSACQ / Georgetown, LP Page 83 of 170 3 •Jackson Shaw (dba JSACQ / Georgetown, LC) is a Dallas-based developer that specializes in urban industrial and hospitality development. •They have recently developed over 9.5MM SF of industrial with more than 3MM SF currently under construction across Texas, Colorado, Florida, Arizona, Nevada, and Washington DC Company Profile Page 84 of 170 4 Project Location •Approximately 224 acres •Follows the boundaries of the new North Georgetown TIRZ Page 85 of 170 5 Proposed Concept Commercial Frontage ~392K SF Multi- Family 388 Units Industrial Phase 1 ~400K SF Industrial Phase 2 & 3 ~1.3MM SF •Jackson Shaw is looking to develop property, beginning with Phase I in 2022 •Estimated assessed value increase of $246,700,000 Page 86 of 170 6 Proposed Concept Renderings Flex Industrial Rear-Load Concept Commercial Frontage Concept Page 87 of 170 7 Dry Berry Creek Interceptor $10MM FM 972 (on OTP) $4.55MM Phase 1 Temporary Septic Proposed Infrastructure •Only Phase 1 (400K SF of industrial development) may use temporary septic •All other development must connect to the Dry Berry Creek Interceptor for waste water service Page 88 of 170 8 Dry Berry Creek Interceptor •Over 12,000 linear feet of 36” sanitary sewer trunk line •Line will run along the Dry Berry Creek bed to connect with the Berry Creek Interceptor •Jackson Shaw will construct the line with completion by June 30, 2025 •Estimated cost of the project is approximately $10,000,000 •TIRZ will reimburse up to $8,500,000 Page 89 of 170 9 FM 972 Extension •Proposed major arterial •135’ width w/ ROW •10’ sidewalk/bike path •Estimated construction cost of $4.55MM •Jackson Shaw will design and construct •Completion by March 1, 2025North Georgetown TIRZ Proposed 972 Alignment Page 90 of 170 10 Proposed Incentives Incentive Amount Temporary Septic allowed Only allowed on Phase 1 industrial until the Dry Berry Creek Interceptor is completed -- Infrastructure Reimbursement –FM 972 Paid from the GTEC Fund; applies to construction of public road FM 972 $4,600,000 Infrastructure Reimbursement –Dry Berry Creek Interceptor Paid from the North Georgetown TIRZ $8,500,000 Total Incentive Package $13,100,000 Jackson Shaw (JSACQ / Georgetown LC) must: •Complete construction of Phase I –400,000 square feet of speculative industrial development –by June 30, 2025 •Invest a minimum of $24,000,000 in capital expenditures Page 91 of 170 11 Questions and Discussion Page 92 of 170 12 Item C Consideration of the TIF Zone #6 (North Georgetown TIRZ) Infrastructure Reimbursement Agreement between the City of Georgetown and JSACQ / Georgetown, LP Page 93 of 170 13 Item D Consideration of an economic development incentive agreement between Georgetown Transportation Enhancement Corporation (GTEC) and JSACQ / Georgetown, LP Page 94 of 170 PAGE 1 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP STATE OF TEXAS § § COUNTY OF WILLIAMSON § TIF ZONE NUMBER SIX INFRASTRUCTURE REIMBURSEMENT AGREEMENT This Infrastructure Reimbursement Agreement (this “Agreement”) is made by and among the City of Georgetown, a Texas municipal corporation (the “City”), the Board of Directors of the City of Georgetown Tax Increment Financing Zone Number Six (the “Board”) and JSACQ / Georgetown, LP, a Texas limited partnership (“Company”), acting by and through their respective authorized officers or general partner. W I T N E S S E T H: WHEREAS, City has adopted an ordinance designating a certain geographical area as City of Georgetown Tax Increment Reinvestment Zone Number Six (the “Zone”) in accordance with the Tax Increment Financing Act, Tax Code, Chapter 311 (the “Act”) to promote development within the Zone through the use of tax increment financing; and WHEREAS, the Act authorizes the expenditure of funds derived within a tax increment financing reinvestment zone for the payment or reimbursement of expenditures made or estimated to be made and monetary obligations incurred or estimated to be incurred by the City that are listed in the project plan of the reinvestment zone which expenditures and monetary obligations constitute project costs as defined by the Act; and WHEREAS, Company owns or is under contract to purchase approximately 223 acres of land generally located near the intersection of State Highway 195 and Interstate 35, in Georgetown, Texas, further described in Exhibit “A” (the “Land”), which Land is located within the Zone; and WHEREAS, Company intends to construct and develop on the Land three (3) speculative industrial buildings of approximately 400,000 square feet of space, and at full build out of the development would contain approximately 2,000,000 square feet of industrial space; and WHEREAS, for the Land to have sanitary sewer service Company intends to design and construct approximately 12,000 linear feet of 36” sanitary sewer trunk line connecting the Land to the Dry Berry Creek Interceptor (hereinafter defined as the “Infrastructure”) in accordance with the Plans and Specifications (hereinafter defined); and WHEREAS, the Infrastructure will allow for the future development of over 1,000 additional acres to the north and west of Company’s proposed development and will allow for additional economic growth of the City; and WHEREAS, Company intends to make a Capital Investment (hereinafter defined) of at least Twenty-Four Million No/100 Dollars ($24,000,000.00) for the Project (hereinafter defined); and Page 95 of 170 PAGE 2 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP WHEREAS, the contemplated Project to be developed and constructed within the Zone as set forth herein are consistent with the project and financing plan of the Zone and with encouraging development within the Zone in accordance with the purposes for its creation and applicable laws; and WHEREAS, Company has advised City that a contributing factor that would induce Company to undertake the Project would be an agreement by the City to provide reimbursement from the Zone’s tax increment fund to Company to defray Eligible Costs (hereinafter defined); and WHEREAS, City has determined that allocating Zone tax increment to the reimbursement of Eligible Costs for the Infrastructure will further the objectives of the City, will benefit the City and the City’s inhabitants, and will promote local economic development and stimulate business and commercial activity in the City; NOW THEREFORE, in consideration of the foregoing, and on the terms and conditions hereinafter set forth, and other consideration the receipt and sufficiency of which are hereby acknowledged the Parties agree as follows: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Annual Payment Date” shall mean the date which is thirty (30) days after receipt of a Payment Request following June 1 of each calendar year during the term of this Agreement, except the first Annual Payment Date shall be thirty (30) days after receipt of the Payment Request following June 1 of the calendar year following the date of Completion of Construction of the Infrastructure. The last Annual Payment Date shall be thirty (30) days after receipt of a Payment Request following June 1, 2039, for the Reimbursement Payment that includes the 2038 Tax Increment for Eligible Costs. “Bankruptcy or Insolvency” shall mean the dissolution or termination of a Party’s existence as a going business, insolvency, appointment of receiver for any part of such Party’s property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against such Party and such proceeding is not dismissed within ninety (90) days after the filing thereof. “Board” shall mean the Board of Directors of the Zone. “Capital Investment” shall mean the total costs incurred and paid by Company for the design and construction of the Project. Page 96 of 170 PAGE 3 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP “Captured Appraised Value” shall mean the total taxable value of all real property taxable by a Taxing Unit and located in the Zone for the year less the Tax Increment Base of the Taxing Unit. “City” shall mean the City of Georgetown, Texas, acting by and through its City Manager. “Commencement of Construction” shall mean: (A) with respect to the Infrastructure that: (i) the Plans and Specifications have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for construction of the Infrastructure; and (ii) all necessary permits for the construction of the Infrastructure and Phase 1 Improvements pursuant to the Plans and Specifications have been issued by all the applicable governmental authorities; and (iii) clearing and/or grading of the Land has commenced; and (B) with respect to the Phase 1 Improvements that: (i) the plans have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for construction of the Phase 1 Improvements; (ii) all necessary permits for the construction of the Phase 1 Improvements pursuant to the plans have been issued by all the applicable governmental authorities; and (iii) clearing and/or grading of the Land has commenced for the Phase 1 Improvements. “Company” shall mean JSACQ / Georgetown, LP, a Texas limited partnership, its successors and permitted assigns. “Company Affiliate” shall mean any entity that is directly or indirectly controlled by or is under common control with Company. “Completion of Construction” shall mean: (A) with respect to the Infrastructure that: (i) substantial completion of the Infrastructure, or portion thereof, has occurred in accordance with the Plans and Specifications; (ii) City has conducted the final inspection and accepted the Infrastructure, or applicable portion thereof; and (B) with respect to the Phase 1 Improvements that: (i) substantial completion of the Phase 1 Improvements has occurred; and (ii) City has issued a certificate of occupancy for the occupancy of the Phase 1 Improvements. “Contractor” shall mean the contractor(s) or sub-contractor(s) selected by Company to construct the Infrastructure and Phase 1 Improvements. “Effective Date” shall mean the last date of execution hereof by all Parties. “Eligible Costs” shall mean the costs that are incurred and paid by Company for acquisition of Right-of-Way (hereinafter defined) located off-site of Phase 1 or other real property not owned by Company or an Company Affiliate for the Infrastructure and the design and construction of the Infrastructure, including but not limited to hard construction costs, engineering fees, permitting fees, testing fees, and construction Page 97 of 170 PAGE 4 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP management fees not to exceed three and one-half percent (3.5%) but not including interest, costs for on-site Right-of-Way located on Phase 1 or other real property owned by Company or Company Affiliate or financing costs. “Expiration Date” shall mean the earlier of the date of payment of the Maximum Reimbursement Amount the Parties and the date of termination of the Zone. “Force Majeure” shall mean any contingency or cause beyond the reasonable control of a Party including, without limitation, acts of God or the public enemy, war, riot, terrorism, civil commotion, insurrection, government or de facto governmental action, restrictions or interferences (unless caused by the intentional acts or omissions of the Party), fires, explosions, floods or other inclement weather, strikes, slowdowns or work stoppages, incidence of disease or other illness that reaches outbreak, epidemic, or pandemic proportions or similar causes that results in a reduction of labor force or work stoppage in order to comply with local, state, or national disaster orders, construction delays, shortages or unavailability of supplies, materials or labor, necessary condemnation proceedings, or any other circumstances which are reasonably beyond the control of the Party obligated or permitted under the terms of this Agreement to do or perform the same, regardless of whether any such circumstances are similar to any of those enumerated or not, the Party so obligated or permitted shall be excused from doing or performing the same during such period of delay, so that the time period applicable to such obligation or performance shall be extended for a period of time equal to the period such Party was delayed, provided the Party whose performance is delayed provides written notice to the other Party not later than fifteen (15) business days after the last day of the month of the occurrence of the event(s) or condition(s) causing the delay or the date the Party whose performance has been delayed becomes aware or should have reasonably known of the event, describing such event(s) and/or condition(s) and the date on which such event(s) and/or condition(s) occurred. “GEDCO” shall mean the Georgetown Economic Development Corporation, a Type A sales tax corporation. “GTEC” shall mean Georgetown Transportation Enhancement Corporation, a Type B sales tax corporation. “GTEC Economic Development Incentive Agreement shall mean that certain Economic Development Incentive Agreement by and between GTEC and Company related to the extension of FM 972. “Infrastructure” shall mean the design and construction of approximately 12,000 linear feet of 36” sanitary sewer trunk line connecting the Land to the Berry Dry Interceptor and related utilities as generally depicted in Exhibit “B” in accordance with the Plans and Specifications. “Land” shall mean the real property described in Exhibit “A”. Page 98 of 170 PAGE 5 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP “Maximum Reimbursement Amount” shall mean the cumulative payment of the Reimbursement Payments in the amount of the lesser of: (i) Eligible Costs actually incurred and paid by Company for the Infrastructure as verified by City; or (ii) the sum of Eight Million Five Hundred Thousand No/100 Dollars ($8,500,000.00). “Participation Agreement” shall mean an agreement between City and a Taxing Unit for the Taxing Unit to contribute Tax Increment to the Tax Increment Fund. “Party” means Company, Board or City. “Parties” means City, Board and Company, collectively. “Payment Request” shall mean a written request from the Company to City for an annual Reimbursement Payment accompanied by: (i) copies of invoices, bills, receipts and such other information as may be reasonably requested by City to document the costs incurred and paid by Company for Eligible Costs for the Infrastructure; and (ii) satisfactory written proof that all amounts owing to contractors and subcontractors for the Infrastructure have been paid in full evidenced by the customary affidavits executed by Company and/or its contractors. “Plans and Specifications” shall mean the plans and specifications prepared by the Project Engineer for the Infrastructure and/or Phase 1 Improvements, as approved by the City Manager, or designee. “Phase 1” shall mean that portion of the Land upon which the Phase 1 Improvements shall be constructed. “Phase 1 Improvements” shall mean three (3) speculative industrial buildings containing collectively approximately 400,000 square feet of space constructed on Phase 1, and other ancillary facilities such as reasonably required parking and landscaping more fully described in the submittals filed by Company with City, from time to time, to obtain a building permit(s). “Project” shall collectively mean the Phase 1 Improvements and the Infrastructure. “Project Plan” shall mean the final financing and project plan for the Zone, as amended. “Reimbursement Payment(s)” shall mean the annual payment to Company for Eligible Costs for the Infrastructure from the Tax Increment Fund beginning with the First Annual Payment Date. “Related Agreement” shall mean any written agreement (other than this Agreement) by and between: (i) City, GEDCO and/or GTEC and the Company, or a Company Affiliate; and (ii) the GTEC Economic Development Agreement. Page 99 of 170 PAGE 6 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP “Tax Increment” shall mean the total amount of property taxes assessed by a Taxing Unit for the year on the Captured Appraised Value of real property taxable by such Taxing Unit and located in the Zone. The amount of Tax Increment contributed by the Taxing Unit shall be limited to any maximum amount or other terms set forth in the respective Participation Agreement of such Taxing Unit or the ordinance creating Zone, in the case of City. “Tax Increment Base” shall mean the total taxable value of all real property taxable by a Taxing Unit and located in the Zone for the year in which the Zone was designated (2021). “Tax Increment Fund” shall mean the fund in which Tax Increment is deposited by City and any Taxing Unit for the Zone. “Taxable Value” shall mean the appraised value as certified by the appraisal district, or its successor, for a given year. “Taxing Unit” shall mean City and any taxing unit that taxes real property within the Zone and enters a Participation Agreement with City to contribute Tax Increment to the Tax Increment Fund. “Zone” shall mean City of Georgetown Tax Increment Financing Zone Number Six. “Zone Ordinance” shall mean the ordinance of City designating the Zone. Article II Term This Agreement shall begin on the Effective Date and shall continue until the Expiration Date, unless sooner terminated as provided herein. Article III Zone Project 3.1 Project Construction. (a) Construction Schedule. Company shall, subject to events of Force Majeure, cause Commencement of Construction of the Infrastructure and/or the Phase I Improvements Project to occur on or before June 30, 2023, and shall, subject to events of Force Majeure, cause Completion of Construction of the Project to occur on or before June 30, 2025. (b) Right-of-Way. Company shall, without additional cost to City and prior to Commencement of Construction of the Project, dedicate, or cause the owner of the necessary property to dedicate, by plat or convey by separate instrument, in form reasonably acceptable to Page 100 of 170 PAGE 7 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP City any right-of-way or easements necessary for the installation, construction, use, maintenance and repair of the Infrastructure (“Right-of-Way”). (c) Project Engineer. Company shall within ninety (90) days after the Effective Date, contract with one or more certified and licensed professional engineers (or firm) to prepare plans and specifications for the design and construction of the Infrastructure for the benefit of City. The professional engineer (or firm) selected by Company shall be approved in writing by City prior to any engineering services being provided by the selected engineer (the “Project Engineer”). Company’s contract with the Project Engineer shall provide that the Plans and Specifications for the Infrastructure are being prepared for the benefit of City and that City (its agents and contractors) may publish, reproduce, and use the Plans and Specifications for the Infrastructure. City shall have the sole right to approve or reject Company's selection of a project engineer and the cost of such services. This Agreement shall automatically terminate without further notice in the event City does not provide written approval of an engineer selected by Company for the design and construction of the Project. (d) Plans and Specifications Approval. Company shall cause the Project Engineer to submit the proposed plans and specifications for the Project to City for review and approval. City may require Company to cause the revision and/or modification of the proposed plans and specifications for the Project as often as is reasonably necessary. Company shall cause Project Engineer to revise and/or modify and submit revised or modified plans and specifications for the Infrastructure to City, as often as may be reasonably required by City. City shall have thirty (30) days following receipt of the submittal of proposed plans and specifications for the Infrastructure (including any revised or modified plans and specifications) to review and approve the proposed plans and specifications for the Project. If City does not approve the proposed plans and specifications for the Infrastructure (or revised or modified plans and specifications) within such 30-day period, the proposed plans and specifications shall be deemed disapproved. This process shall be followed until the earlier of: (i) the date City approves proposed plans and specifications for the Infrastructure; or (ii) the date which is sixty (60) days after the original submittal of the proposed plans and specifications for the Project to City. (e) Submission of Permit Applications. Prior to Commencement of Construction of the Project, Company shall make, or cause to be made, application for any necessary permits and approvals that are customarily required by City and any applicable governmental authorities to be issued for the construction of the Project. (f) Compliance. Company shall comply and cause its Contractor to comply with all local and state laws and regulations regarding the design and construction of the Infrastructure in accordance with the Plans and Specifications, including but not limited to, any applicable requirement relating to payment, performance, and maintenance bonds. (g) Project Inspection. City Engineer, or designee shall have the right to inspect the Infrastructure to determine whether the Infrastructure construction is in accordance with the requirements of Plans and Specifications, this Agreement as well as City standards, ordinances, and regulations pertaining to the construction of public improvements. Page 101 of 170 PAGE 8 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP (h) Pre-Construction Conference. Prior to Commencement of Construction of the Project, if required by City, shall cause the Contractor and the Project Engineer to hold a pre- construction conference with City-designated Engineering Inspector and the applicable private and public utility companies, as necessary. (i) Bonds. Company shall cause the Contractor to provide payment bonds and performance bonds for the construction of the Infrastructure to ensure completion thereof pursuant to Chapter 2253, Texas Government Code, as amended. Company shall cause the Contractor to provide maintenance bonds for the Infrastructure in favor of City in accordance with City requirements and regulations pertaining to maintenance bonds for public improvements. 3.2 Acceptance Procedures. City acceptance of the Infrastructure or portion thereof shall require: (i) Submittal of executed Company's affidavit that all payrolls, invoices for materials and equipment, and other liabilities connected with the Infrastructure work have been fully paid or otherwise satisfied; (ii) Submittal of executed Contractor's affidavit that all payrolls, invoices for materials and equipment, and other liabilities connected with the Infrastructure work have been fully paid or otherwise satisfied; (iii) Submittal of Consent of Surety; (iv) Submittal of one set of reproducible As-Built Record Drawings for the Infrastructure; (v) Delivery of a bill of sale conveying the Infrastructure, or portion thereof to City for which the Company has submitted a Payment Request; and (vi) Delivery of all assignable warranties or assignment of warranties for the Infrastructure, or portion thereof for which Company has submitted a Payment Request. 3.3 Access to Work and Inspections. City, and its representatives, shall always have access to the Project work from Commencement of Construction through Completion of Construction. The Company shall take whatever steps reasonably necessary to provide such access when requested. When reasonably requested by City based on substantiated need for confirmation, the Company shall perform or cause to be performed such testing as may be reasonably necessary or reasonably appropriate to ensure suitability of the jobsite or compliance with the Plans and Specifications. 3.4 Indemnification. CITY AND BOARD SHALL NOT BE LIABLE FOR ANY LOSS, DAMAGE, OR INJURY OF ANY KIND OR CHARACTER TO ANY PERSON OR PROPERTY ARISING FROM THE ACTS OR OMISSIONS OF COMPANY OR ITS CONTRACTOR PURSUANT TO THIS AGREEMENT. COMPANY HEREBY WAIVES ALL Page 102 of 170 PAGE 9 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP CLAIMS AGAINST CITY, THE BOARD, THEIR, OFFICERS, AGENTS AND EMPLOYEES (COLLECTIVELY REFERRED TO IN THIS SECTION AS “CITY”) FOR DAMAGE TO ANY PROPERTY OR INJURY TO, OR DEATH OF, ANY PERSON ARISING AT ANY TIME AND FROM ANY CAUSE OTHER THAN THE SOLE NEGLIGENCE, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT OF CITY. COMPANY DOES HEREBY INDEMNIFY, DEFEND AND SAVE HARMLESS CITY FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, ATTORNEYS’ FEES AND COSTS OF INVESTIGATION) AND ACTIONS OF ANY KIND BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY ARISING FROM COMPANY’S BREACH OF ANY OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, OR BY REASON OF ANY NEGLIGENT OR WILLFUL ACT OR OMISSION ON THE PART OF COMPANY, ITS OFFICERS, DIRECTORS, SERVANTS, AGENTS, EMPLOYEES, REPRESENTATIVES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, SUCCESSORS OR PERMITTED ASSIGNS IN THE PERFORMANCE OF THIS AGREEMENT (EXCEPT WHEN SUCH LIABILITY, CLAIMS, SUITS, COSTS, INJURIES, DEATHS OR DAMAGES ARISE FROM OR ARE ATTRIBUTED TO THE SOLE NEGLIGENCE, GROSS NEGLIGENCE OR WILLFUL ACT OF CITY. IN THE EVENT OF JOINT OR CONCURRENT NEGLIGENCE OF BOTH CITY AND COMPANY, THE RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO CITY AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND THEIR RESPECTIVE SUCCESSORS AND PERMITTED ASSIGNS AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. THE COMPANY’S OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY COMPANY UNDER THIS AGREEMENT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 3.5 Project Records and Audits. (a) Company shall keep, and cause the Contractor to keep, a complete and accurate record to document the performance of the Infrastructure work and to expedite any audit that might be conducted by City and/or its authorized representatives. Company shall maintain and cause the Contractor to maintain records sufficient to document that the payments provided pursuant to this Agreement were expended only for Eligible Costs for the Infrastructure that were incurred in accordance with all applicable state and local laws, rules, policies, and procedures, and in accordance with this Agreement. (b) Company shall maintain, and cause the Contractor to maintain all books, documents, papers, accounting records and other documentation relating to costs incurred under this Agreement; and Company shall make, and cause the Contractor to make such materials available to City for review and inspection during the term of this Agreement and for a period of Page 103 of 170 PAGE 10 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP two (2) years from the date of Completion of Construction of the Project, or until any pending litigation or claims are resolved, whichever is later. (c) Company shall provide and cause the Contractor, upon not less than 48 hours’ prior written notice, to provide City access to all Infrastructure records during normal business hours that are applicable to this Agreement for the purpose of making audits, examinations, excerpts, and transcriptions. 3.6 Assignment of Warranties. Company agrees to obtain and assign to City the assignable warranties from the Contractor and suppliers providing labor and/or materials in connection with the Infrastructure. Such warranties shall: (a) be at least standard industry warranties with respect to the Infrastructure; and (b) obligate the Contractor and suppliers to repair all defects in the Infrastructure for a period of two (2) years following Completion of Construction of the Infrastructure. 3.7 Casualty. Risk of loss due to casualty shall be borne by Company until Completion of Construction of the Infrastructure. Company shall carry, or cause to be carried as an Eligible Cost, insurance in amounts sufficient to restore any portion of the Infrastructure damaged by casualty to the same condition as existed immediately prior to such casualty. Company will, in any event, restore any portion of the Infrastructure damaged or destroyed by casualty as part of its obligation to construct the Infrastructure and the time granted by City for restoration shall be commensurate to the extent of the damage or destruction. 3.8 Insurance. Company shall obtain and maintain in full force and effect at its expense the policies of insurance and coverage identified in (a) and (d)] below and shall require its Contractor to obtain and maintain at their expense each of the policies of insurance and coverage identified in (a) through (e) below. Company shall require any company providing Engineering Services to obtain and maintain at their expense each of the policy of insurance and coverage identified in (f) below.: (a) Commercial General Liability Policy covering bodily injury, death and property damage, including the property of City, its directors, officers, employees and agents insuring against all claims, demands or actions relating to the Project work and services provided pursuant to this Agreement with minimum limits on a per project basis of not less than One Million No/100 Dollars ($1,000,000) combined single limit and Two Million No/100 Dollars ($2,000,000) aggregate, including products and completed operations coverage. This policy shall be primary to any policy or policies carried by or available to City. (b) Workers' Compensation/Employer's Liability Insurance Policy in full accordance with the statutory requirements of the State of Texas and shall include bodily injury, occupational illness, or disease coverage with minimum Employer’s Liability limits of not less than $500,000/$500,000/$500,000. (c) Automobile Liability Insurance Policy covering all operations of Company pursuant to this Agreement involving the use of motor vehicles, including all owned, non-owned Page 104 of 170 PAGE 11 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP and hired vehicles with minimum limits of not less than One Million No/100 Dollars ($1,000,000) combined single limit for bodily injury, death, and property damage liability. (d) Excess Liability Insurance Policy with a limit of not less than Ten Million No/100 Dollars ($10,000,000). Such insurance shall be in excess of the commercial general liability insurance, business auto liability insurance and employer’s liability insurance. This insurance will apply as primary insurance with respect to any other insurance or self-insurance programs maintained by City and shall be provided on a “following form basis”. Continuing commercial umbrella coverage, if any, shall include liability coverage for damage to the Contractor’s completed work. (e) Property/Builders Risk Insurance Policy with “all-risk” coverage on the entire Project construction value with replacement cost basis to include the interest of City, Company, the Contractor in the Project work, and materials in transit and stored off the Project site destined for incorporation. (f) Professional Liability Insurance (if applicable) with limit of not less than Two Million No/100 Dollars ($2,000,000) for all negligent acts, errors and omissions by the Project Engineer that arise out of the performance of this Agreement. (g) Waiver of Subrogation Rights. The Commercial General Liability, Worker’s Compensation, Business Auto and Excess Liability insurance required pursuant to this Agreement shall provide for waivers of all rights of subrogation against City. (h) Additional Insured Status. Except for Worker’s Compensation Insurance and any Professional Liability Insurance, all insurance required pursuant to this Agreement shall include and name City, its elected officials, officers, and employees as additional insureds. The Additional Insured status for City shall remain in force and effect for a minimum of two (2) years following abandonment or completion of the work and services provided pursuant to this Agreement and the termination of this Agreement. (i) Certificates of Insurance. Certificates of Insurance and policy endorsements for the required insurance shall be delivered to City prior to the commencement of any work or services under this Agreement and annually for a minimum of two (2) years following the Expiration Date or termination of this Agreement, abandonment, or completion of Project work. All required policies shall be endorsed to provide City with thirty (30) days advance notice of cancellation or material change in coverage. In the event the companies providing the required insurance are prohibited by law to provide any such specific endorsements regarding cancellation, non-renewal and/or material changes, the Company shall provide at least thirty (30) days prior written notice to City of any cancellation, non-renewal and/or material changes to any of the policies of insurance. (j) On every date of renewal of the required insurance policies, Company shall deliver to City (and cause the Contractor to deliver to City a Certificate of Insurance and policy endorsements to be issued evidencing the required insurance herein. In addition, Company shall, within ten (10) business days after written request, provide City with Certificates of Insurance Page 105 of 170 PAGE 12 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP and policy endorsements for the insurance required herein (which request may include copies of such policies). The delivery of the Certificates of Insurance and the policy endorsements (including copies of such insurance policies) to City is a condition precedent to the payment of any amounts due to Company by City. (k) Carriers. All policies of insurance required to be obtained by Company and its Contractor pursuant to this Agreement shall be maintained with insurance carriers that are satisfactory to City and lawfully authorized to issue insurance in the state of Texas for the types and amounts of insurance required herein. All insurance companies providing the required insurance shall be authorized to transact business in Texas and rated at least “A-VII” by AM Best or other equivalent rating service. All policies must be written on a primary basis, non- contributory with any other insurance coverage and/or self-insurance maintained by City. 3.9 City Construction of Infrastructure. (a) Notwithstanding anything to the contrary herein, if Company defaults in its obligations to cause the Commencement and Completion of Construction of the Infrastructure and such default is not cured after notice as provided herein City and/or the Board shall have the right, in their sole discretion, to construct the Infrastructure, or portion thereof, after prior notice to the Company as provided for herein. In such event City and/or Board elect to construct the Infrastructure, or portion thereof, all costs incurred by or paid by City and/or the Board therefore shall be reimbursed to City and/or Board through the Reimbursement Payments hereunder. 3.10 Traffic Impact Analysis. In connection with the GTEC Economic Development Agreement and provided Company does not have an uncured breach of this Agreement or a Related Agreement, City grants an exception/waiver of the requirement for Company to cause a traffic impact analysis to be conducted as required by 12.09 of the Unified Development Code for the Land. 3.11 Temporary On-Site Septic. Company shall, until Completion of Construction of the Infrastructure and connection to the Dry Berry Creek Interceptor, be allowed to construct, maintain and use a temporary on-site septic system on the industrial zone portion of the Land. Article IV Reimbursement Payments 4.1 Reimbursement Payments. (a) Subject to the Company’s continued satisfaction of all the terms and conditions of this Agreement, City agrees to reimburse Company for Eligible Costs for the Infrastructure solely from the Reimbursement Payments from the Tax Increment Fund as set forth herein. (b) City shall make Reimbursement Payments, not to exceed the Maximum Reimbursement Amount, to the Company for Eligible Costs for the Infrastructure on an annual basis within 30 days after receipt of a Payment Request following June 1 of each calendar year (the “Annual Payment Date”) beginning with the First Annual Payment Date; provided however Page 106 of 170 PAGE 13 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP the payment of the last Reimbursement Payment for Eligible Expenses for the Infrastructure from the 2038 Tax Increment shall survive the termination of the Zone, unless the Zone is terminated as result of a termination of this Agreement. (c) The amount of each annual Reimbursement Payment shall be the lesser of: (i) the amount of the Eligible Costs then eligible for payment pursuant to paragraph (b) of this Section 4.1 that have not been paid to Company; and (ii) the amount of available Tax Increment Funds after consideration of the Tax Increment Fund Priorities set forth in Section 4.2, below, not to exceed the Maximum Reimbursement Amount. If there are insufficient funds in the Tax Increment Fund for an annual Reimbursement Payment, the unreimbursed Eligible Costs are carried forward without interest, to succeeding Annual Payment Dates until reimbursement of the Eligible Costs for the Infrastructure has been made in full not to exceed the Maximum Reimbursement Amount, or termination of this Agreement or the Zone, whichever occurs first. (d) The Parties agree that the Reimbursement Payments shall be provided solely from funds from the Tax Increment Fund, and only to the extent that funds are available in the Tax Increment Fund. Company acknowledges and agrees that City is only obligated to reimburse Company for Eligible Costs to the extent that there are available funds from the Tax Increment Fund during the term of this Agreement. The obligation of City to pay Company the Eligible Costs is limited to the extent that there are funds in the Tax Increment Fund available during the term of this Agreement. (e) Company agrees to look solely to the Tax Increment Fund, not City general or other funds, for payment of the Reimbursement Payments to the extent monies in the Tax Increment Fund are available. Nothing in this Agreement shall be construed to obligate City to provide Reimbursement Payments from any other source of funds or to otherwise require City to pay Company for Eligible Costs in the event there are insufficient funds in the Tax Increment Fund to pay Eligible Costs or in the event the Zone terminates prior to payment in full of the Eligible Costs or payment of the Maximum Reimbursement Amount (provided City shall not adopt an ordinance providing for termination of Zone on a date earlier than December 31, 2038unless this Agreement has been terminated). Upon the termination of this Agreement or the Expiration Date, any Eligible Costs and Reimbursement Payments under this Agreement that remain un-reimbursed or that remains unpaid, due to lack of availability of Tax Increment Funds, or due to the failure of Company to satisfy any precondition of reimbursement under this Agreement, shall no longer be considered obligations of the Zone, and any obligation of City to provide Reimbursement Payments to Company for Eligible Costs shall automatically expire and terminate on such date. 4.2 Tax Increment Fund Priorities. (a) Except as otherwise provided herein, the funds deposited in the Tax Increment Fund shall be applied in the following order of priority: (i) amounts pledged or required for payment of outstanding bonds or City debt issued for the Zone projects, if any, for the payment of the obligations of this Agreement; (ii) the reasonable administrative costs of the Zone; (iii) the maintenance of a minimum balance of $10,000.00 in the Tax Increment Fund; prior to the last year of the Zone and Page 107 of 170 PAGE 14 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP (iv) Reimbursement Payments to the Company, or City pursuant to Section 3.9. (b) The use of Tax Increment contributed by any Taxing Unit other than City shall be subject to any rules, regulations, restrictions, and limitations set forth in the respective Participation Agreement for such Taxing Unit. 4.3 Current Revenue. The Reimbursement Payments to be provided herein shall be paid solely from lawful available funds in the Tax Increment Fund. Under no circumstances shall obligations of City and/or the Board hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. 4.4 Tax Protest. (a) In the event the Company or any owner or lessee of any real property and/or improvements within the Zone (“Protest Property”) timely and properly protests or contests (including any motion to correct the appraisal roll) the Taxable Value and/or the taxation of the Protest Property, or any portion thereof, with the applicable appraisal district (or its successor)(“Tax Protest”) the obligation of City and Board to provide the Reimbursement Payments from the Tax Increment Fund with respect to such Protest Property or portion thereof, for such tax year shall be postponed with regard to the amount of ad valorem taxes that are in dispute (based on the amount or portion of taxable value of the Protest Property in dispute) until a final determination has been made of such Tax Protest. In the event of a Tax Protest City shall send written notice to the Company of the amount of ad valorem taxes that are in dispute (based on the amount or portion of taxable value of the Protest Property in dispute). However in the event a Tax Protest results in a final determination that changes the appraised value and/or the Taxable Value of the Protest Property or the amount of ad valorem taxes assessed and due for the Protest Property, or portion thereof, after a Reimbursement Payment has been paid which includes Tax Increment for such Protest Property for such tax year, the Tax Increment Fund will be adjusted accordingly and the Reimbursement Payment with respect to such tax year shall be adjusted (increased or decreased as the case may be) accordingly on the date of payment of the next Annual Payment Date for a Reimbursement Payment, or within thirty (30) business days after such determination in the event no further Reimbursement Payments are due under the Agreement. In the event there are no further Reimbursement Payments due under this Agreement and Tax Increment with respect to such Protest Property is reduced Company, shall within thirty (30) days after written demand from City, reimburse City for such over payment of any such Reimbursement Payments. (b) Refunds. If City determines that the amount by which such Reimbursement Payment was less than the correct amount to which Company was entitled (together with such records, reports, and other information necessary to support such determination), City shall, within thirty (30) days, pay the adjustment to Company. 4.5 Third Party Ownership. No third-party purchaser of any portion of the Phase 1 Improvements or the Land shall be deemed an assignee under this Agreement or be entitled to receive any Reimbursement Payments directly from City hereunder without the execution of an assignment by Company to such third party, approved in writing by City. Nothing herein shall be construed to limit the ability of Company to pledge or collaterally assign rights to funds from Reimbursement Payments following receipt thereof from City. Notwithstanding anything to the Page 108 of 170 PAGE 15 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP contrary, City shall not be required to provide or direct any Reimbursement Payments to any third-party in the absence of an assignment approved by City. Article V Conditions to City Incentive Payments The obligation of City to pay each Reimbursement Payment shall be conditioned upon the continued compliance with and satisfaction of each of the terms and conditions of this Agreement by Company and each of the conditions set forth below at the time such annual Reimbursement Payment is due: (a) Good Standing. The Company shall not have an uncured breach or default of any term of this Agreement, or any Related Agreement. (b) Undocumented Workers. The Company has not been convicted of a violation under 8 U.S.C. Section 1324a (f). (c) Payment Request. Company shall, as a condition precedent to its eligibility to receive a Reimbursement Payment, have timely provided City with the applicable Payment Request on or before June 1 of the calendar year in which the Payment Request is made (d) Capital Investment. The Capital Investment shall be at least Twenty-Four Million No/100 Dollars ($24,000,000.00) as of the date of Completion of Construction of the Project. Company shall within thirty (30) days after the Completion of Construction of the Project provide City with copies of receipts and other records as City may reasonably request evidencing the required Capital Investment. (e) Compliance with the UDC. The Land and any improvements constructed thereon shall comply with the UDC standards for non-residential development, as well as design and materials for non-residential development for all building facades. (f) Master Plan. Company shall have prepared and submit to City a conceptual master plan for the Land which shall comply with the minimum design standards and other details as required by the zoning ordinance as of the Effective Date for the development of the Phase I Improvements. Article VI Termination 6.1 This Agreement shall terminate on the Expiration Date, or may be terminated earlier upon any one of the following: (a) by written agreement of the Parties; (b) upon written notice from either Party in the event the other Party breaches any of the terms or conditions of this Agreement or a Related Agreement and such breach is not cured within thirty (30) days after written notice thereof; (c) upon written notice from City if Company suffers an event of Bankruptcy or Insolvency; (d) upon written notice from City, if any Impositions owed to City or the State of Texas by Company shall become delinquent and shall remain delinquent for more Page 109 of 170 PAGE 16 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP than thirty (30) days after written notice of such delinquency from City to Company (provided, however Company retains the right to timely and properly protest and contest any such Impositions); or (e) upon written notice by either Party, if any subsequent Federal or State legislation or any decision of a court of competent jurisdiction declares or renders this Agreement invalid, illegal, or unenforceable. 6.2 City Remedies. In the event the Agreement is terminated by City pursuant to Section 6.1(b), (c), (d), or (e), City and Board shall be relieved of any further obligation to pay Reimbursement Payments to Company for Eligible Costs incurred by the Company prior to or after the date of termination. In the event the Agreement is terminated pursuant to Section 6.1(b) by City for an uncured default, City may also seek specific performance related to such uncured default, and/or actual damages incurred because of such uncured default. 6.3 Company Remedies. In the event of an uncured default of this Agreement Company may seek specific performance and/or actual damages incurred because of such uncured default. 6.4 Right of Offset. City may at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due and owing to City and/or GTEC from Company, regardless of whether the amount due arises pursuant to the terms of this Agreement, a Related Agreement, or otherwise, and regardless of whether the debt has been reduced to judgment by a court. Article VII Miscellaneous 7.1 Binding Agreement; Assignment. The terms and conditions of this Agreement are binding upon the successors and permitted assigns of the Parties hereto. This Agreement may not be assigned without the prior written consent of City, which consent shall not be unreasonably withheld, denied, or delayed. Company or any permitted assignee of the Company shall have the right to grant a security interest in this Agreement by collaterally assigning Company’s (or permitted assignee’s) rights under this Agreement to any lender which provides financing to the Company or its permitted assignee for all or part of the Infrastructure, and City agrees to execute and deliver any documents reasonably requested by any such lender to evidence and/or perfect its rights under this Agreement. At no time shall City be required to make any payments under this Agreement to any party other than Company or a party to whom this Agreement has been fully assigned and has agreed in writing to assume all liabilities and obligations of the Company set forth in this Agreement unless otherwise agreed to by City. 7.2 Limitation on Liability. It is understood and agreed between the Parties that Company and City, in satisfying the conditions of this Agreement, have acted independently, and assume no responsibilities or liabilities to third parties in connection with these actions. Page 110 of 170 PAGE 17 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP 7.3 No Joint Venture. It is acknowledged and agreed by the Parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the Parties. 7.4 Authorization. Each Party represents that it has full capacity and authority to grant all rights and assume all obligations that are granted and assumed under this Agreement. 7.5 Notice. Any notice required or permitted to be delivered hereunder shall be deemed received (i) three (3) days after deposit into the United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the Party at the address set forth below or (ii) on the day received if sent by courier or otherwise hand delivered. If intended for City or Board, to David Morgan, City Manager City of Georgetown 808 Martin Luther King, Jr. Street Georgetown, Texas 78626 With a copy to: Skye Masson, City Attorney City of Georgetown 808 Martin Luther King Jr. St. Georgetown, Texas 78626 If intended for Company, to: Attn: Grant E. Pearson Vice President, Development JSACQ / Georgetown, LP 4890 Alpha Road, Suite 100 Dallas, Texas 75244 With a copy to: JSACQ / Georgetown, LP Attn: John Stone Chief Financial Officer 4890 Alpha Road, Ste. 100 Dallas, Texas 75244 7.6 Entire Agreement. This Agreement is the entire agreement between the Parties with respect to the subject matter covered in this Agreement. There is no other collateral oral or written agreement between the Parties that in any manner relates to the subject matter of this Agreement, except as provided in any Exhibits attached hereto. 7.7 Governing Law. The Agreement shall be governed by the laws of the State of Texas; and venue for any action concerning this Agreement shall be in the State District Court of Williamson County, Texas. The Parties agree to submit to the personal and subject matter jurisdiction of said court. 7.8 Amendment. This Agreement may only be amended by a written agreement executed by all Parties. 7.9 Legal Construction. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention of the Parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision shall be added to this Agreement which is legal, valid and Page 111 of 170 PAGE 18 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 7.10 Recitals. The recitals to this Agreement are incorporated herein. 7.11 Counterparts. This Agreement may be executed in counterparts. Each of the counterparts shall be deemed an original instrument, but all the counterparts shall constitute one and the same instrument. 7.12 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 7.13 Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the Parties, as well as any rights and benefits of the Parties, expressly pertaining to a period of time following the termination of this Agreement shall survive termination. 7.14 Employment of Undocumented Workers. During the term of this Agreement Company agrees not to knowingly employ any undocumented workers and if convicted of a violation under 8 U.S.C. Section 1324a (f), the Company shall repay the amount of any Reimbursement Payment or other funds received by Company from City from the date of this Agreement to the date of such violation within 120 days after the date Company is notified by City of such violation, plus interest at the rate of 4% compounded annually from the date of violation until paid. Company is not liable for a violation of this section by a subsidiary, affiliate, or franchisee of Company or by a person with whom Company contracts. 7.15 Boycott Israel; Boycott Energy Companies; and of Discrimination against Firearm Entities and Firearm Trade Associations. (a) Company verifies that it does not Boycott Israel and agrees that during the term of the Agreement will not Boycott Israel as that term is defined in Texas Government Code Section 808.001, as amended. (b) Company verifies that it does not Boycott Energy Companies and agrees that during the term of this Agreement will not Boycott Energy Companies as that term is defined in Texas Government Code Section 809.001, as amended. (c) Company verifies that it does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association as those terms are defined in Texas Government Code Section 2274.001, as amended; and (ii) will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. (d) This section does not apply if Company is a sole proprietor, a non-profit entity, or a governmental entity; and only applies if: (i) Company has ten (10) or more fulltime employees and (ii) this Agreement has a value of $100,000.00 or more to be paid under the terms of this Agreement. Page 112 of 170 PAGE 19 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP 7.16 Conditions Precedent. This Agreement is expressly subject to, and the obligations of the Parties are conditioned upon (i) the GTEC Economic Development Agreement is fully executed and (ii) the City Council approving by ordinance a final Zone project plan and financing plan that includes the funding for the Infrastructure provided by this Agreement after the approval of the project plan and financing plan by the Board. (Signature page to follow) Page 113 of 170 PAGE 20 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP EXECUTED on this _______ day of ____________________, 2021. CITY OF GEORGETOWN, TEXAS By: ______________________________________ Josh Schroeder, Mayor APPROVED AS TO FORM: By: Skye Masson, City Attorney EXECUTED on this _______ day of ____________________, 2021. BOARD OF DIRECTORS, CITY OF GEORGETOWN TAX INCREMENT REINVESTMENT ZONE NUMBER SIX By: President EXECUTED the _________ day of ____________________, 2018. JSACQ / GEORGETOWN, LP, a Texas limited partnership By: JSC / Georgetown GP, LLC, a Texas limited liability company, its general partner By: Name: Title: Page 114 of 170 PAGE 21 INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP Page 115 of 170 PAGE 1 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP Exhibit “A” Legal Description of the Land North Georgetown TIRZ #6 Preliminary Project & Financing Plan Exhibit 1 – Metes & Bounds Description of Property FIELD NOTES FOR A 119.784 ACRE TRACT OF LAND: BEING A 119.784 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 119.784 ACRE TRACT, BEING ALL OF THAT CALLED 111.36 ACRE TRACT OF LAND KNOWN AS "TRACT I", THE REMAINING PORTION OF THAT CALLED 7.3 ACRE TRACT OF LAND KNOWN AS "TRACT II", AND ALL OF THAT CALLED 2.12 ACRE TRACT OF LAND KNOWN AS "TRACT III", RECORDED IN VOLUME 512, PAGE 71, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, AND BEING ALL OF THAT CALLED 3.05 ACRE TRACT OF LAND RECORDED IN VOLUME 545, PAGE 392, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, BEING THE SAME PROPERTY CONVEYED TO JASPER N. SUDDUTH AND WIFE, IDA P. SUDDUTH IN INSTRUMENT RECORDED IN VOLUME 512, PAGE 71 AND BEING ALL OF THE SAME PROPERTY CONVEYED TO DONALD HOYLE AND WIFE, PATSY S. HOYLE IN INSTRUMENT RECORDED IN VOLUME 545, PAGE 392; SAID 119.784 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1/2" iron rod located for the northwest corner of the remainder of said 7.3 acre tract, the northeast corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, being an angle point of that called 104.89 acre tract of land recorded in Document No. 2008016952, Official Public Records, Williamson County, Texas, said point being the northwest corner of the herein described tract of land; Thence, with the northwest lines of the remainder of said 7.3 acre tract, said 2.12 acre tract, and said 111.36 acre tract, the southeast lines of said 104.89 acre tract, the following two (2) courses and distances: 1. N 64° 22' 55" E, a distance of 197.60' (Record per Doc. No. 2008016952: N 65° 45' 36" E, a distance of 197.59'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. N 68° 12' 57" E, a distance of 1820.19' (Record per Doc. No. 2008016952: N 69° 36' 19" E, a distance of 1820.51'), to a 1" square iron pipe located for an angle point of said 111.36 acre tract, being the southeast corner of said Page 116 of 170 PAGE 2 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP 104.89 acre tract, the southwest corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; 3. Thence, with the northwest line of said 111.36 acre tract, the southeast line of said 72.32 acre tract, N 70° 40' 37" E, passing a 1" iron pipe located at a distance of 656.89', continuing a total distance of 659.38' (Record: N 74° 10' 00" E, a distance of 658.61')(Record per Vol. 886, Pg. 335: N 72° 57' 00" E, a distance of 658.13')(Record per Doc. No. 2006017468: N 70° 39' 41" E, a distance of 659.38'), to a 1/2" iron rod located in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the northeast corner of said 111.36 acre tract, said point being the northeast corner of the herein described tract of land; 4. Thence, with the northwest right-of-way line of Interstate Highway 35 Frontage Road, the southeast line of said 111.36 acre tract, S 13° 56' 20" W, passing a TxDOT concrete monument located at a distance of 543.58', a TxDOT concrete monument located at a distance of 1000.60', a TxDOT concrete monument located at a distance of 2001.10', continuing 100.54' for a total distance of 3645.82' (Record per Doc. No. 2006017468: S 13° 56' 29" W, a distance of 3646.70'), to a calculated point in a power pole in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the southeast corner of said 111.36 acre tract, said point being the southeast corner of the herein described tract of land; 5. Thence, departing the northwest right-of-way line of Interstate Highway 35 frontage road, with the southeast lines of said 111.36 acre tract, said 2.12 acre tract, and the remainder of said 7.3 acre tract, the northwest line of that called 1.249 acre tract of land known as "Second Tract", recorded in Volume 1732, Page 249, Deed Records, Williamson County, Texas, S 67° 42' 10" W, passing a 3/8" iron rod located at a distance of 0.42' for the northeast corner of said 1.249 acre tract, a 1/2" iron rod located at a distance of 994.53' for the northwest corner of said 1.249 acre tract, continuing 56.01' for a total distance of 1050.96' (Record per Vol. 1732, Pg. 249: S 71° 00' 00" W, a distance of 990.14'), to a calculated point in the center of Dry Berry Creek, being the southwest corner of the remainder of said 7.3 acre tract, the southeast corner of that called 45.00 acre tract of land recorded in Document No. 2004002927, Official Public Records, Williamson County, Page 117 of 170 PAGE 3 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP Texas, being in a northwest line of that called 71.997 acre tract of land recorded in Document No. 2008000666, Official Public Records, Williamson County, Texas, said point being the southwest corner of the herein described tract of land; Thence, with the approximate center line of Dry Berry Creek, the following twelve (12) courses and distances: 6. N 18° 43' 13" W, a distance of 119.07', to a calculated point for an angle point of the herein described tract of land; 7. N 08° 20' 24" W, a distance of 77.91', to a calculated point for an angle point of the herein described tract of land; 8. N 06° 15' 48" E, a distance of 102.38', to a calculated point for an angle point of the herein described tract of land; 9. N 16° 24' 06" E, a distance of 224.02', to a calculated point for an angle point of the herein described tract of land; 10. N 07° 44' 03" E, a distance of 168.85', to a calculated point for an angle point of the herein described tract of land; 11. N 07° 06' 33" W, a distance of 204.47', to a calculated point for an angle point of the herein described tract of land; 12. N 11° 33' 16" W, a distance of 283.45', to a calculated point for an angle point of the herein described tract of land; 13. N 13° 30' 25" W, a distance of 113.69', to a calculated point for an angle point of the herein described tract of land; 14. N 19° 16' 42" W, a distance of 358.97', to a calculated point for an angle point of the herein described tract of land; 15. N 21° 52' 20" W, a distance of 91.57', to a calculated point for an angle point of the herein described tract of land; 16. N 32° 08' 36" W, a distance of 49.98', to a calculated point for an angle point of the herein described tract of land; Page 118 of 170 PAGE 4 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP 17. N 42° 07' 33" W, a distance of 44.61', to a calculated point in the center of Dry Berry Creek, being in a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, said point being an exterior corner of the herein described tract of land; 18. Thence, departing the center of Dry Berry Creek, with a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, N 62° 51' 22" E, passing a 1/2" iron rod located for reference at a distance of 30.81', continuing 52.06' for a total distance of 82.87', to a 1/2" iron rod located for an interior corner of the remainder of said 54.3 acre tract, the southeast corner of said 54.3 acre tract, said point being an interior corner of the herein described tract of land, Thence, with the southwest lines of the remainder of said 7.3 acre tract, the northeast lines of said 54.3 acre tract, the following fourteen (14) courses and distances: 19. N 21° 45' 16" W, a distance of 131.35' (Record per Doc. No. 2014088568: N 20° 22' 13" W, a distance of 131.35'), to a 60D nail located for an angle point of the herein described tract of land; 20. N 20° 31' 05" W, a distance of 60.86' (Record per Doc. No. 2014088568: N 19° 06' 55" W, a distance of 60.76'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 21. N 30° 43' 16" W, a distance of 11.06' (Record per Doc. No. 2014088568: N 29° 19' 54" W, a distance of 11.05'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 22. N 22° 54' 40" W, a distance of 104.20' (Record per Doc. No. 2014088568: N 21° 31' 18" W, a distance of 104.14'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 23. N 18° 03' 10" W, a distance of 130.05' (Record per Doc. No. 2014088568: N 16° 43' 03" W, a distance of 130.08'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; Page 119 of 170 PAGE 5 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP 24. N 23° 12' 32" W, a distance of 100.95' (Record per Doc. No. 2014088568: N 21° 53' 07" W, a distance of 101.09'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 25. N 20° 47' 10" W, a distance of 180.56' (Record per Doc. No. 2014088568: N 19° 26' 34" W, a distance of 180.48'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 26. N 22° 02' 53" W, a distance of 104.75' (Record per Doc. No. 2014088568: N 20° 35' 52" W, a distance of 104.99'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 27. N 26° 22' 25" W, a distance of 33.25' (Record per Doc. No. 2014088568: N 24° 55' 24" W, a distance of 33.32'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 28. N 08° 48' 02" W, a distance of 6.36' (Record per Doc. No. 2014088568: N 07° 21' 01" W, a distance of 6.37'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 29. N 20° 14' 35" W, a distance of 16.17' (Record per Doc. No. 2014088568: N 18° 49' 16" W, a distance of 16.18'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 30. N 20° 03' 30" W, a distance of 17.68' (Record per Doc. No. 2014088568: N 18° 38' 11" W, a distance of 17.69'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 31. N 20° 06' 15" W, a distance of 231.63' (Record per Doc. No. 2014088568: N 18° 40' 56" W, a distance of 231.73'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 32. N 19° 32' 43" W, a distance of 110.22' (Record per Doc. No. 2014088568: N 18° 07' 24" W, a distance of 110.27'), to the POINT OF BEGINNING containing 119.784 acres of land. Page 120 of 170 PAGE 6 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP Note: The basis of bearing was established using the Trimble VRS Network, NAD (83), Texas State Plane Coordinate System, Central Zone, 4203, US Survey Foot, Grid. A survey plat was prepared by a separate document. Page 121 of 170 PAGE 7 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP FIELD NOTES FOR A 104.884 ACRE TRACT OF LAND: BEING A 104.884 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT, BEING ALL OF THAT CALLED 104.89 ACRE TRACT OF LAND RECORDED IN DOCUMENT NO. 2020151834, OFFICIAL PUBLIC RECORDS, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1" square iron pipe located for the easternmost corner of said 104.89 acre tract, the southernmost corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, being an angle point of that called 111.36 acre tract of land known as "Tract 1", recorded in Volume 512, Page 71, Deed Records, Williamson County, Texas, said point being the easternmost corner of the herein described tract of land; Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 111.36 acre tract, the following two (2) courses and distances: 1. S 68° 12' 57" W, a distance of 1820.19' (Record: S 69° 36' 19" W, a distance of 1820.51'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. S 64° 22' 55" W, a distance of 197.60' (Record: S 65° 45' 36" W, a distance of 197.59'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, the westernmost corner of said 111.36 acre tract, the northernmost corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; Page 122 of 170 PAGE 8 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 54.3 acre tract, the following two (2) courses and distances: 3. S 69° 29' 55" W, a distance of 320.10' (Record: S 70° 51' 03" W, a distance of 319.99'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 4. S 69° 03' 58" W, a distance of 499.96' (Record: S 70° 29' 45" W, a distance of 500.56'), to a 1/2" iron rod located for the southernmost corner of said 104.89 acre tract, the easternmost corner of that called 33.63 acre tract of land recorded in Document No. 2004079454, Official Public Records, Williamson County, Texas, being an angle point of said 54.3 acre tract, said point being the southernmost corner of the herein described tract of land; 5. Thence, with the southwest line of said 104.89 acre tract, the northeast line of said 33.63 acre tract, N 21° 34' 01" W, a distance of 1625.97' (Record: N 20° 09' 53" W, a distance of 1624.84'), to a 1/2" iron rod located for the westernmost corner of said 104.89 acre tract, the northernmost corner of said 33.63 acre tract, being in a southeast line of that called 284.03 acre tract of land recorded in Volume 656, Page 620, Deed Records, Williamson County, Texas, said point being the westernmost corner of the herein described tract of land; 6. Thence, with a northwest line of said 104.89 acre tract, the southeast line of said 284.03 acre tract, N 69° 02' 47" E, a distance of 1795.12' (Record: N 70° 23' 23" E, a distance of 1795.28'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, an angle point of said 284.03 acre tract, an angle point of said 72.32 acre tract, said point being an angle point of the herein described tract of land; Thence, with the common boundary lines of said 104.89 acre tract and said 72.32 acre tract, the following three (3) courses and distances: 7. N 69° 38' 42" E, a distance of 1053.77' (Record: N 71° 03' 05" E, a distance of 1053.79'), to a 1" square iron pipe located for the northernmost corner of the herein described tract of land; Page 123 of 170 PAGE 9 EXHIBIT “A” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP 8. S 21° 18' 14" E, a distance of 554.64' (Record: S 19° 54' 18" E, a distance of 554.70'), to a 3/8" iron rod located for an angle point of the herein described tract of land; S 21° 04' 34" E, a distance of 1020.48' (Record: S 19° 42' 15" E, a distance 1020.54') to the POINT OF BEGINNING containing 104.884 acres of land Page 124 of 170 Exhibit “B” Depiction of Infrastructure SOLO PAGE EXHIBIT “B” TO INFRASTRUCTURE REIMBURSEMENT AGREEMENT TIF ZONE NUMBER SIX (TM 125883) CITY OF GEORGETOWN AND JSACQ / GEORGETOWN, LP Page 125 of 170 City of Georgetown, Texas City Council Special Meeting D ecember 17, 2021 S UBJEC T: Consideration of an economic development incentive agreement between Georgetown Transportation Enhancement Corporation (G TE C) and J SACQ/Georgetown, LP -- Michaela Dollar, Economic Development Director I T EM S UMMARY: Developer J ackson Shaw (J SACQ) seeks to purchase and develop approximately 224 acres of property in Georgetown city limits, located north of the IH35 and H W Y195 intersection. The company plans to develop the land into a master- planned multi-use development that would consist of approximately 1.7 M M square feet of industrial development, 392,000 square feet of commercial development, and 388 multi-family units once fully built out. To develop the site, J ackson Shaw must construct a significant amount of public infrastructure improvements, including design and construction public road FM 972. The road, which is classified as a major arterial in the City’s Overall Transportation P lan, will cost approximately $4,550,000. Staff proposes to reimburse J ackson Shaw up to $4,600,000 for the cost of design and construction of the FM 972 road extension from the Georgetown Transportation Enhancement Corporation (G TEC) Type B Sales Tax Fund. J ackson Shaw must complete construction of the road to City standards as well as 400,000 square feet of speculative industrial development. The developer must also invest a minimum of $24 M M in capital expenditures on-site and complete construction by March 1, 2025. F I NANC I AL I MPAC T: A maximum of $4,600,000 from the Georgetown Transportation Enhancement Corporation (G TE C) Type B Sales Tax Fund. S UBMI T T ED BY: Michaela Dollar, Economic Development Director AT TAC HMENT S : Description North G eorgetown T I R Z Inc entive Agreements P resentation G T EC – JS AC Q Ec onomic Development Inc entive Agreement Page 126 of 170 North Georgetown TIRZ Development Incentive Agreements Michaela Dollar December 14, 2021 Page 127 of 170 2 Captions C.Consideration of the TIF Zone #6 (North Georgetown TIRZ) Infrastructure Reimbursement Agreement between the City of Georgetown and JSACQ / Georgetown, LP D.Consideration of an economic development incentive agreement between Georgetown Transportation Enhancement Corporation (GTEC) and JSACQ / Georgetown, LP Page 128 of 170 3 •Jackson Shaw (dba JSACQ / Georgetown, LC) is a Dallas-based developer that specializes in urban industrial and hospitality development. •They have recently developed over 9.5MM SF of industrial with more than 3MM SF currently under construction across Texas, Colorado, Florida, Arizona, Nevada, and Washington DC Company Profile Page 129 of 170 4 Project Location •Approximately 224 acres •Follows the boundaries of the new North Georgetown TIRZ Page 130 of 170 5 Proposed Concept Commercial Frontage ~392K SF Multi- Family 388 Units Industrial Phase 1 ~400K SF Industrial Phase 2 & 3 ~1.3MM SF •Jackson Shaw is looking to develop property, beginning with Phase I in 2022 •Estimated assessed value increase of $246,700,000 Page 131 of 170 6 Proposed Concept Renderings Flex Industrial Rear-Load Concept Commercial Frontage Concept Page 132 of 170 7 Dry Berry Creek Interceptor $10MM FM 972 (on OTP) $4.55MM Phase 1 Temporary Septic Proposed Infrastructure •Only Phase 1 (400K SF of industrial development) may use temporary septic •All other development must connect to the Dry Berry Creek Interceptor for waste water service Page 133 of 170 8 Dry Berry Creek Interceptor •Over 12,000 linear feet of 36” sanitary sewer trunk line •Line will run along the Dry Berry Creek bed to connect with the Berry Creek Interceptor •Jackson Shaw will construct the line with completion by June 30, 2025 •Estimated cost of the project is approximately $10,000,000 •TIRZ will reimburse up to $8,500,000 Page 134 of 170 9 FM 972 Extension •Proposed major arterial •135’ width w/ ROW •10’ sidewalk/bike path •Estimated construction cost of $4.55MM •Jackson Shaw will design and construct •Completion by March 1, 2025North Georgetown TIRZ Proposed 972 Alignment Page 135 of 170 10 Proposed Incentives Incentive Amount Temporary Septic allowed Only allowed on Phase 1 industrial until the Dry Berry Creek Interceptor is completed -- Infrastructure Reimbursement –FM 972 Paid from the GTEC Fund; applies to construction of public road FM 972 $4,600,000 Infrastructure Reimbursement –Dry Berry Creek Interceptor Paid from the North Georgetown TIRZ $8,500,000 Total Incentive Package $13,100,000 Jackson Shaw (JSACQ / Georgetown LC) must: •Complete construction of Phase I –400,000 square feet of speculative industrial development –by June 30, 2025 •Invest a minimum of $24,000,000 in capital expenditures Page 136 of 170 11 Questions and Discussion Page 137 of 170 12 Item C Consideration of the TIF Zone #6 (North Georgetown TIRZ) Infrastructure Reimbursement Agreement between the City of Georgetown and JSACQ / Georgetown, LP Page 138 of 170 13 Item D Consideration of an economic development incentive agreement between Georgetown Transportation Enhancement Corporation (GTEC) and JSACQ / Georgetown, LP Page 139 of 170 PAGE 1 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) STATE OF TEXAS § § COUNTY OF WILLIAMSON § ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT This Economic Development Incentive Agreement (“Agreement”) is made by and between the Georgetown Transportation Enhancement Corporation, a Type B sales tax corporation (“GTEC”) and JSACQ / Georgetown, LP a Texas limited partnership (“Company”) (GTEC and Company each a “Party” and collectively the “Parties”), acting by and through their respective authorized representatives. W I T N E S S E T H: WHEREAS, Company owns or is under contract to purchase approximately 223 acres of land generally located near the intersection State Highway 195 and Interstate 35, in Georgetown, Texas, further described in Exhibit “A” (the “Land”); and WHEREAS, the Company intends to construct and develop on the Land three (3) speculative industrial buildings of approximately 400,000 square feet of space, and at full build out of the development would contain approximately 2,000,000 square feet of industrial space; and WHEREAS, Company intends to design and construct an extension of Farm-to-Market Road 972, a major arterial, west of where it currently terminates at the Interstate 35 frontage road to the northern border of the Land to provide additional connectivity to Interstate 35 and access to the Company’s proposed development (the “Infrastructure”) in accordance with the Plans and Specifications (hereinafter defined).; and WHEREAS, Company intends to make a Capital Investment (hereinafter defined) of at least Twenty-Four Million Dollars ($24,000,000.00) for Phase 1 Improvements (hereinafter defined); and WHEREAS, Company has advised GTEC that a contributing factor that would induce Company to undertake the design and construction of the Project (hereinafter defined) would be an agreement by GTEC to provide an economic development grant to Company to offset the costs for the design and construction of the Infrastructure; and WHEREAS, GTEC has adopted programs for promoting economic development; and WHEREAS, the Development Corporation Act, Chapter 501-505 of the Texas Local Government Code (the “Act”) authorizes GTEC to provide economic development grants that are expenditures found by the board of directors of GTEC to be required or suitable for infrastructure necessary to promote new or expanded industrial business enterprises; and WHEREAS, the board of directors of GTEC has determined that the Grant (hereinafter defined) related to the design and construction of the Infrastructure to be made hereunder is Page 140 of 170 PAGE 2 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) required or suitable for infrastructure suitable for new or expanded industrial business enterprises and constitutes a “project”, as that term is defined in the Act; and WHEREAS, GTEC has determined that providing the Grant to Company in accordance with this Agreement will further the objectives of GTEC, will benefit the City and the City’s inhabitants and will promote local economic development and stimulate business and commercial activity in the City; NOW THEREFORE, in consideration of the foregoing, and other consideration the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Bankruptcy or Insolvency” shall mean the dissolution or termination of Company’s existence, insolvency, employment of receiver for any part of Company’s property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment for the benefit of creditors or the commencement of any proceedings under any bankruptcy or insolvency laws by or against Company and such proceedings are not dismissed within ninety (90) days after the filing thereof. “Capital Investment” shall mean the total capitalized cost incurred and paid by Company for the design and construction of the Project. “City” shall mean the City of Georgetown, Texas. “City Tax Increment Reimbursement Agreement” shall mean that certain Tax Increment Zone Number 6 infrastructure reimbursement agreement by and between the City and Company dated approximate herewith. “Commencement of Construction” shall mean: (A) with respect to the Infrastructure that: (i) the Plans and Specifications have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for construction of the Infrastructure; and (ii) all necessary permits for the construction of the Infrastructure pursuant to the Plans and Specifications have been issued by all the applicable governmental authorities; and (iii) clearing and/or grading of the Land has commenced; and (B) with respect to the Phase 1 Improvements that: (i) the plans have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for construction of the Phase 1 Improvements; (ii) all necessary permits for the construction of the Phase 1 Improvements pursuant to the plans have been issued by all the applicable governmental authorities; and (iii) clearing and/or grading of the Land has commenced for the Phase 1 Improvements. Page 141 of 170 PAGE 3 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) “Company” shall mean JSACQ / Georgetown, LP, a Texas limited partnership. “Company Affiliate” shall mean any entity that is directly or indirectly controlled by or is under common control with Company. “Completion of Construction” shall mean: (A) with respect to the Infrastructure that: (i) substantial completion of the Infrastructure, or portion thereof, has occurred in accordance with the Plans and Specifications; (ii) the City has conducted the final inspection and accepted the Infrastructure, or applicable portion thereof; and (B) with respect to the Phase 1 Improvements that: (i) substantial completion of the Phase 1 Improvements has occurred; and (ii) the City has issued a certificate of occupancy for the occupancy of the Phase 1 Improvements. “Contractor” shall mean a contractor(s) or sub-contractor(s) selected by the Company to construct the Infrastructure. “Effective Date” shall mean the last date of execution hereof as set forth in the signature pages herein below. “Eligible Costs” shall mean the costs that are incurred and paid by Company for acquisition of Right-of-Way (hereinafter defined) located off-site of Phase 1 or other real property not owned by Company or an Company Affiliate for the Infrastructure and the design and construction of the Infrastructure, including but not limited to hard construction costs, engineering fees, permitting fees, testing fees, and construction management fees not to exceed three and one-half percent (3.5%) but not including interest, costs for on-site Right-of-Way located on Phase 1 or other real property owned by Company or Company Affiliate, or financing costs. “Engineering Services” shall mean the engineering services undertaken by the Project Engineer for the Plans and Specifications. “Expiration Date” shall mean the date the Parties have fully satisfied their respective obligations herein, unless sooner terminated as provided herein. “Force Majeure” shall mean any contingency or cause beyond the reasonable control of a Party including, without limitation, acts of God or the public enemy, war, riot, terrorism, civil commotion, insurrection, government or de facto governmental action, restrictions or interferences (unless caused by the intentional acts or omissions of the Party), fires, explosions, floods or other inclement weather, strikes, slowdowns or work stoppages, incidence of disease or other illness that reaches outbreak, epidemic, or pandemic proportions or similar causes that results in a reduction of labor force or work stoppage in order to comply with local, state, or national disaster orders, construction delays, shortages or unavailability of supplies, materials or labor, necessary condemnation proceedings, or any other circumstances which are reasonably beyond the control of the Party obligated or permitted under the terms of this Agreement to do or perform the same, regardless of whether any such circumstances are similar to any of those enumerated or not, the Party so obligated or permitted shall be excused from doing or performing the same during such period of delay, so that the time period applicable to such obligation or performance shall be Page 142 of 170 PAGE 4 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) extended for a period of time equal to the period such Party was delayed, provided the Party whose performance is delayed provides written notice to the other Party not later than fifteen (15) business days after the last day of the month of the occurrence of the event(s) or condition(s) causing the delay or the date the Party whose performance has been delayed becomes aware or should have reasonably known of the event, describing such event(s) and/or condition(s) and the date on which such event(s) and/or condition(s) occurred or began. “GEDCO” shall mean the Georgetown Economic Development Corporation, a Type A sales tax corporation. “GTEC” shall mean Georgetown Transportation Enhancement Corporation, a Type B sales tax corporation. “Grant” shall mean an economic development grant not to exceed the Maximum Grant Amount to be paid to Company to offset the Eligible Costs incurred and paid by Company for the design and construction of the Infrastructure, to be paid in installments as set forth herein. “Impositions” shall mean all taxes, assessments, use and occupancy taxes, charges, excises, license, and permit fees, and other charges by public or governmental authority, general and special, ordinary, and extraordinary, foreseen, and unforeseen, which are or may be assessed, charged, levied, or imposed by any public or governmental authority on Company with respect to any property or any business owned by Company within the City. “Infrastructure” shall mean the design and construction of an extension of Farm-to-Market Road 972, a major arterial, west of where it currently terminates at the Interstate 35 frontage road to the northern border of the Land as set forth in the Plans and Specifications and as generally described in Exhibit “B”. “Land” shall mean the real property described in Exhibit “A”. “Maximum Grant Amount” shall mean the lesser of: (i) Eligible Costs actually incurred and paid by Company for the Infrastructure as verified by GTEC; or (ii) the sum of Four Million Six Hundred Thousand Dollars ($4,600,000.00). “Payment Request” shall mean a written request from Company to GTEC, which request shall include an application for an installment payment of the Grant, a progress report, an itemized statement specifying the Eligible Costs for the Infrastructure that have been incurred and paid to date and supporting copies of invoices from the Contractor and copies of all payments made to Contractor to document the Eligible Costs incurred and paid by Company for the Infrastructure, and such other information, as may reasonably be requested by GTEC evidencing the Eligible Costs incurred and paid by the Company for Infrastructure and evidencing the Capital Investment. “Phase 1” shall mean that portion of the Land upon which the Phase 1 Improvements and the Infrastructure shall be constructed. Page 143 of 170 PAGE 5 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) “Phase 1 Improvements” shall mean three (3) speculative industrial buildings containing approximately 400,000 square feet of space constructed on Phase 1, and other ancillary facilities such as reasonably required parking and landscaping more fully described in the submittals filed by Company with the City, from time to time, to obtain a building permit(s). “Plans and Specifications” shall mean the plans and specifications prepared by the Project Engineer for the Infrastructure as approved in writing by the City Manager, or designee. “Project” shall collectively mean the Phase 1 Improvements and the Infrastructure. “Project Engineer” shall mean the certified professional engineer selected by the Company and approved in writing by the City Manager, or designee, to provide the Engineering Services. “Related Agreement” shall mean: (i) any agreement (other than this Agreement) by and between: (i) the City, GEDCO and/or GTEC, and Company or a Company Affiliate; and (ii) the City Tax Increment Reimbursement Agreement. Article II Term The term of this Agreement shall begin on the Effective Date and continue until the Expiration Date, unless sooner terminated as provided herein. Article III Project 3.1 Construction of the Project and Phase 1 Improvements. (a) Construction Schedule. Company shall, subject to events of Force Majeure, cause Commencement of Construction of the Project to occur on or before March 1, 2023, and shall, subject to events of Force Majeure, cause Completion of Construction of the Project and the Infrastructure to occur within twenty-four (24) months thereafter. (b) Right-of-Way. Company shall, without additional cost to the City and prior to Commencement of Construction of the Project, dedicate, or cause the owner of the necessary property to dedicate, by plat or convey by separate instrument, in form reasonably acceptable to the City any right-of-way or easements necessary for the installation, construction, use, maintenance and repair of the Infrastructure (“Right-of-Way”). (c) Project Engineer. Company shall within ninety (90) days after the Effective Date, contract with one or more certified and licensed professional engineers (or firm) to prepare plans and specifications for the design and construction of the Infrastructure for the benefit of City. The professional engineer (or firm) selected by Company shall be approved in writing by City prior to any engineering services being provided by the selected engineer (the “Project Engineer”). Company’s contract with the Project Engineer shall provide that the Plans and Specifications for Page 144 of 170 PAGE 6 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) the Infrastructure are being prepared for the benefit of City and that City (its agents and contractors) may publish, reproduce, and use the Plans and Specifications for the Infrastructure. Company’s contract with the Project Engineer shall include a cost allocation of the cost of services for the utilities portion of the Infrastructure and for the costs for the design of the roadway portion of the Infrastructure. City shall have the sole right to approve or reject Company's selection of a project engineer and the cost of such services. This Agreement shall automatically terminate without further notice in the event City does not provide written approval of an engineer selected by Company for the design and construction of the Project. (d) Plans and Specifications Approval. Company shall cause the Project Engineer to submit the proposed plans and specifications for the Infrastructure to City for review and approval. City may require Company to cause the revision and/or modification of the proposed plans and specifications for the Project as often as is reasonably necessary. Company shall cause Project Engineer to revise and/or modify and submit revised or modified plans and specifications for the Infrastructure to City, as often as may be reasonably required by City. The City shall have thirty (30) days following receipt of the submittal of proposed plans and specifications for the Infrastructure (including any revised or modified plans and specifications) to review and approve the proposed plans and specifications for the Infrastructure. If City does not approve or provide comments the proposed plans and specifications for the Infrastructure (or revised or modified plans and specifications) within such 30-day period, the proposed plans and specifications shall be deemed disapproved. This process shall be followed until the earlier of: (i) the date the City approves proposed plans and specifications for the Infrastructure; or (ii) the date which is sixty (60) days after the original submittal of the proposed plans and specifications for the Project to the City. (e) Submission of Permit Applications. Prior to Commencement of Construction of the Project, Company shall make, or cause to be made, application for any necessary permits and approvals that are customarily required by City and any applicable governmental authorities to be issued for the construction of the Project. (f) Compliance. Company shall comply and cause its Contractor to comply with all local and state laws and regulations regarding the design and construction of the Infrastructure in accordance with the Plans and Specifications, including but not limited to, any applicable requirement relating to payment, performance, and maintenance bonds. (g) Project Inspection. City Engineer, or designee shall have the right to inspect the Infrastructure to determine whether the Infrastructure construction is in accordance with the requirements of Plans and Specifications, this Agreement as well as City standards, ordinances, and regulations pertaining to the construction of public improvements. (h) Pre-Construction Conference. Prior to Commencement of Construction of the Project, if required by City, shall cause the Contractor and the Project Engineer to hold a pre- construction conference with the City-designated Engineering Inspector and the applicable private and public utility companies, as necessary. Page 145 of 170 PAGE 7 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) (i) Bonds. Company shall cause the Contractor to provide payment bonds and performance bonds for the construction of the Infrastructure to ensure completion thereof pursuant to Chapter 2253, Texas Government Code, as amended. Company shall cause the Contractor to provide maintenance bonds for the Infrastructure in favor of City in accordance with City requirements and regulations pertaining to maintenance bonds for public improvements. 3.2 Acceptance Procedures. City acceptance of the Infrastructure or portion thereof shall require: (i) Submittal of executed Company's affidavit that all payrolls, invoices for materials and equipment, and other liabilities connected with the Infrastructure work have been fully paid or otherwise satisfied; (ii) Submittal of executed Contractor's affidavit that all payrolls, invoices for materials and equipment, and other liabilities connected with the Infrastructure work have been fully paid or otherwise satisfied; (iii) Submittal of Consent of Surety; (iv) Submittal of one set of reproducible As-Built Record Drawings for the Infrastructure; (v) Delivery of a bill of sale conveying the Infrastructure, or portion thereof to the City for which the Company has submitted a Payment Request; and (vi) Delivery of all assignable warranties or assignment of warranties for the Infrastructure, or portion thereof for which Company has submitted a Payment Request. 3.3 Access to Work and Inspections. City, and its representatives, shall have access to the Project work at all times from Commencement of Construction through Completion of Construction. The Company shall take whatever steps reasonably necessary to provide such access when requested. When reasonably requested by the City based on substantiated need for confirmation, the Company shall perform or cause to be performed such testing as may be reasonably necessary or reasonably appropriate to ensure suitability of the jobsite or compliance with the Plans and Specifications. 3.4 Indemnification. GTEC SHALL NOT BE LIABLE FOR ANY LOSS, DAMAGE, OR INJURY OF ANY KIND OR CHARACTER TO ANY PERSON OR PROPERTY ARISING FROM THE ACTS OR OMISSIONS OF COMPANY OR ITS CONTRACTOR PURSUANT TO THIS AGREEMENT. COMPANY HEREBY WAIVES ALL CLAIMS AGAINST GTEC, ITS BOARD, OFFICERS, AGENTS AND EMPLOYEES (COLLECTIVELY REFERRED TO IN THIS SECTION AS “GTEC”) FOR DAMAGE TO ANY PROPERTY OR INJURY TO, OR DEATH OF, ANY PERSON ARISING AT ANY TIME AND FROM ANY CAUSE OTHER THAN THE SOLE NEGLIGENCE, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT OF GTEC. COMPANY DOES HEREBY INDEMNIFY, DEFEND AND SAVE HARMLESS GTEC Page 146 of 170 PAGE 8 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, ATTORNEYS’ FEES AND COSTS OF INVESTIGATION) AND ACTIONS OF ANY KIND BY REASON OF INJURY TO OR DEATH OF ANY PERSON OR DAMAGE TO OR LOSS OF PROPERTY ARISING FROM COMPANY’S BREACH OF ANY OF THE TERMS AND CONDITIONS OF THIS AGREEMENT, OR BY REASON OF ANY NEGLIGENT OR WILLFUL ACT OR OMISSION ON THE PART OF COMPANY, ITS OFFICERS, DIRECTORS, SERVANTS, AGENTS, EMPLOYEES, REPRESENTATIVES, CONTRACTORS, SUBCONTRACTORS, LICENSEES, SUCCESSORS OR PERMITTED ASSIGNS IN THE PERFORMANCE OF THIS AGREEMENT (EXCEPT WHEN SUCH LIABILITY, CLAIMS, SUITS, COSTS, INJURIES, DEATHS OR DAMAGES ARISE FROM OR ARE ATTRIBUTED TO THE SOLE NEGLIGENCE, GROSS NEGLIGENCE OR WILLFUL ACT OF THE GTEC). IN THE EVENT OF JOINT OR CONCURRENT NEGLIGENCE OF BOTH GTEC AND COMPANY, THE RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO GTEC AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND THEIR RESPECTIVE SUCCESSORS AND PERMITTED ASSIGNS AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. THE COMPANY’S OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY COMPANY UNDER THIS AGREEMENT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. 3.5 Project Records and Audits. (a) Company shall keep, and cause the Contractor to keep, a complete and accurate record to document the performance of the Infrastructure work and to expedite any audit that might be conducted by GTEC and/or its authorized representatives. Company shall maintain and cause the Contractor to maintain records sufficient to document that Grant funds provided pursuant to this Agreement were expended only for Eligible Costs for the Infrastructure that were incurred in accordance with all applicable state and local laws, rules, policies, and procedures, and in accordance with this Agreement. (b) Company shall maintain, and cause the Contractor to maintain all books, documents, papers, accounting records and other documentation relating to costs incurred under this Agreement; and Company shall make, and cause the Contractor to make such materials available to GTEC for review and inspection during the term of this Agreement and for a period of two (2) years from the date of Completion of Construction of the Project, or until any pending litigation or claims are resolved, whichever is later. (c) Company shall provide and cause the Contractor, upon not less than 48 hours’ prior written notice, to provide GTEC access to all Infrastructure records during normal business hours Page 147 of 170 PAGE 9 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) that are applicable to this Agreement for the purpose of making audits, examinations, excerpts, and transcriptions. 3.6 Assignment of Warranties. Company agrees to obtain and assign to the City the assignable warranties from the Contractor and suppliers providing labor and/or materials in connection with the Infrastructure. Such warranties shall: (a) be at least standard industry warranties with respect to the Infrastructure; and (b) obligate the Contractor and suppliers to repair all defects in the Infrastructure for a period of two (2) years following Completion of Construction of the Infrastructure. 3.7 Casualty. Risk of loss due to casualty shall be borne by Company until Completion of Construction of the Infrastructure. Company shall carry, or cause to be carried as an Eligible Cost, insurance in amounts sufficient to restore any portion of the Infrastructure damaged by casualty to the same condition as existed immediately prior to such casualty. Company will, in any event, until Completion of Construction of the Infrastructure, restore any portion of the Infrastructure damaged or destroyed by casualty as part of its obligation to construct the Infrastructure and the time granted by the City for restoration shall be commensurate to the extent of the damage or destruction. 3.8 Insurance. Company shall obtain and maintain in full force and effect at its expense the policies of insurance and coverage identified in (a) and (d) below and shall require its Contractor to obtain and maintain at their expense each of the policies of insurance and coverage identified in (a) through (e) below. Company shall require any company providing Engineering Services to obtain and maintain at their expense each of the policy of insurance and coverage identified in (f) below. (a) Commercial General Liability Policy covering bodily injury, death and property damage, including the property of GTEC, its directors, officers, employees and agents insuring against all claims, demands or actions relating to the Project work and services provided pursuant to this Agreement with minimum limits on a per project basis of not less than One Million Dollars ($1,000,000) combined single limit and Two Million Dollars ($2,000,000) aggregate, including products and completed operations coverage. This policy shall be primary to any policy or policies carried by or available to GTEC. (b) Workers' Compensation/Employer's Liability Insurance Policy in full accordance with the statutory requirements of the State of Texas and shall include bodily injury, occupational illness, or disease coverage with minimum Employer’s Liability limits of not less than $500,000/$500,000/$500,000. (c) Automobile Liability Insurance Policy covering all operations of Company pursuant to this Agreement involving the use of motor vehicles, including all owned, non-owned and hired vehicles with minimum limits of not less than One Million Dollars ($1,000,000) combined single limit for bodily injury, death, and property damage liability. Page 148 of 170 PAGE 10 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) (d) Excess Liability Insurance Policy with a limit of not less than Ten Million Dollars ($10,000,000). Such insurance shall be in excess of the commercial general liability insurance, business auto liability insurance and employer’s liability insurance. This insurance will apply as primary insurance with respect to any other insurance or self-insurance programs maintained by GTEC and shall be provided on a “following form basis”. Continuing commercial umbrella coverage, if any, shall include liability coverage for damage to the Contractor’s completed work. (e) Property/Builders Risk Insurance Policy with “all-risk” coverage on the entire Project construction value with replacement cost basis to include the interest of GTEC, Company, the Contractor in the Project work and materials in transit and stored off the Project site destined for incorporation. (f) Professional Liability Insurance (if applicable) with limit of not less than Two Million Dollars ($2,000,000) for all negligent acts, errors and omissions by the Project Engineer that arise out of the performance of this Agreement. (g) Waiver of Subrogation Rights. The Commercial General Liability, Worker’s Compensation, Business Auto and Excess Liability insurance required pursuant to this Agreement shall provide for waivers of all rights of subrogation against GTEC. (h) Additional Insured Status. With the exception of Worker’s Compensation Insurance and any Professional Liability Insurance, all insurance required pursuant to this Agreement shall include and name GTEC, its board, officers, and employees as additional insureds. The Additional Insured status for GTEC shall remain in force and effect for a minimum of two (2) years following abandonment or completion of the work and services provided pursuant to this Agreement and the termination of this Agreement. (i) Certificates of Insurance. Certificates of Insurance and policy endorsements for the required insurance shall be delivered to GTEC prior to the commencement of any work or services under this Agreement and annually for a minimum of two (2) years following the Expiration Date or termination of this Agreement, abandonment, or completion of Project work. All required policies shall be endorsed to provide GTEC with thirty (30) days advance notice of cancellation or material change in coverage. In the event the companies providing the required insurance are prohibited by law to provide any such specific endorsements regarding cancellation, non-renewal and/or material changes, the Company shall provide at least thirty (30) days prior written notice to GTEC of any cancellation, non-renewal and/or material changes to any of the policies of insurance. (j) On every date of renewal of the required insurance policies, Company shall deliver to GTEC (and cause the Contractor to deliver to GTEC a Certificate of Insurance and policy endorsements to be issued evidencing the required insurance herein. In addition, Company shall, within ten (10) business days after written request, provide GTEC with Certificates of Insurance and policy endorsements for the insurance required herein (which request may include copies of such policies). The delivery of the Certificates of Insurance and the policy endorsements (including copies of such insurance policies) to GTEC is a condition precedent to the payment of any amounts due to Company by GTEC. Page 149 of 170 PAGE 11 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) (k) Carriers. All policies of insurance required to be obtained by Company and its Contractor pursuant to this Agreement shall be maintained with insurance carriers that are satisfactory to GTEC and lawfully authorized to issue insurance in the state of Texas for the types and amounts of insurance required herein. All insurance companies providing the required insurance shall be authorized to transact business in Texas and rated at least “A-VII” by AM Best or other equivalent rating service. All policies must be written on a primary basis, non-contributory with any other insurance coverage and/or self-insurance maintained by GTEC. 3.10 Grant. (a) Subject to the continued satisfaction of all the terms and conditions of this Agreement by Company and Article V hereof, GTEC agrees to provide the Grant to Company to be paid in four (4) installments as set forth herein. (b) First Installment of the Grant. The first installment of the Grant shall be an amount equal to the lesser of: (i) the costs incurred and paid by Company for one hundred percent (100%) completion of the Plans and Specifications, as reasonably determined by the City Engineer, which verification shall not be unreasonably withheld, conditioned or delayed, or (ii) Twenty-Five percent (25%) of the Maximum Grant Amount not to exceed the Maximum Grant Amount (the “First Installment”). The First Installment shall be paid by GTEC to Company not later than thirty (30) days after receipt of a Payment Request following: (i) achieving 100% completion of the Plans and Specifications, and (ii) the delivery of the approved Plans and Specifications to the City. GETC (or the City Engineer) shall provide Company written notice when the City has determined that 100% Completion has been achieved. Company shall submit the Payment Request for the First Installment not later than ninety (90) days after achieving 100% completion of the Plans and Specifications: and (ii) the delivery of the approved Plans and Specifications to the City. Failure of the Company to submit the Payment Request for the First Installment as set forth in this Section 3.10(b) shall result in forfeiture of the payment of the First Installment. (c) Second Installment of the Grant. The second installment of the Grant shall be an amount equal to the lesser of: (i) the amount of the Eligible Costs incurred and paid by Company for twenty-five percent (25%) completion of the Infrastructure as reasonably determined by the City Engineer (25% Completion) which verification shall not be unreasonably withheld, conditioned or delayed; or (ii) Twenty-Five percent (25%) of the Maximum Grant Amount less the amount reimbursed by the First Installment, not to exceed the Maximum Grant Amount (the “Second Installment”). The Second Installment shall be paid by GTEC to Company not later than thirty (30) days after receipt of a Payment Request following: (i) achieving 25% Completion. GETC (or the City Engineer) shall provide Company written notice when the City has determined that 25% Completion has been achieved. Company shall submit the Payment Request for the Second Installment no earlier than thirty (30) days, but not later than ninety (90) days after achieving 25% Completion. Failure of the Company to submit the Payment Request for the Second Installment as set forth in this Section 3.10(c) shall result in forfeiture of the payment of the Second Installment. Page 150 of 170 PAGE 12 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) (d) Third Installment of the Grant. The third installment of the Grant shall be an amount equal to the lesser of: (i) the amount of the Eligible Costs incurred and paid by Company for fifty percent (50%) completion of the Infrastructure as reasonably determined by the City Engineer (50% Completion) which verification shall not be unreasonably withheld, conditioned or delayed; or (ii) Twenty-Five percent (25%) of the Maximum Grant Amount less the amount reimbursed by the First and Second Installments not to exceed the Maximum Grant Amount (the “Third Installment”). The Third Installment shall be paid by GTEC to Company not later than thirty (30) days after receipt of a Payment Request following achieving 50% Completion. GETC (or the City Engineer) shall provide Company written notice when the City has determined that 50% Completion has been achieved. Company shall submit the Payment Request for the Third Installment no earlier than thirty (30) days, but not later than ninety (90) days after achieving 50% Completion. Failure of the Company to submit the Payment Request for the Third Installment as set forth in this Section 3.10(d) shall result in forfeiture of the payment of the Third Installment. (e) Fourth Installment of the Grant. The fourth installment of the Grant shall be an amount equal to the lesser of: (i) the amount of the Eligible Costs incurred and paid by Company for one hundred percent (100%) completion of the Infrastructure as reasonably determined by the City Engineer (100% Completion) which verification shall not be unreasonably withheld, conditioned or delayed; or (ii) Twenty-Five percent (25%) of the Maximum Grant Amount less the amount reimbursed by the First, Second and Third Installments not to exceed the Maximum Grant Amount (the “Fourth Installment”). The Fourth Installment shall be paid by GTEC to Company not later than thirty (30) days after receipt of a Payment Request following achieving 100% Completion. GETC (or the City Engineer) shall provide Company written notice when the City has determined that 100% Completion has been achieved. Company shall submit the Payment Request for the Fourth Installment not later than ninety (90) days after achieving 100% Completion. Failure of the Company to submit the Payment Request for the Fourth Installment as set forth in this Section 3.10(e) shall result in forfeiture of the payment of the Fourth Installment. (f) In no case shall the cumulative payments of the installments of the Grant exceed the Maximum Grant Amount. (g) Company shall be responsible for payment of all work performed for the Infrastructure in excess of the amount of the Maximum Grant Amount. (h) GTEC will review each Payment Request and the supporting records and the Infrastructure work to determine whether the quantity and quality of the Infrastructure work is as represented in the Request for Payment and is as required by the Plans and Specifications. (i) Company warrants that upon submittal of each Payment Request that all Infrastructure work for which the Payment Request is submitted shall be free and clear of liens, claims, security interest or other encumbrances in favor of Company or any other person or entity whatsoever. (j) No payment of the Grant or any installment thereof, nor any use or occupancy of Infrastructure by GTEC and/or City, shall be interpreted to constitute an acceptance of any Page 151 of 170 PAGE 13 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) Infrastructure work not constructed in accordance with the Plans and Specifications. Company warrants that upon submittal of a Payment Request that the application for payment, all Infrastructure work for which the progress payments has been received from GTEC shall be free and clear of liens, claims, security interest or other encumbrances in favor of Company or any other person or entity whatsoever. Company shall promptly pay, or cause the Contractor to pay, any sub-contractor(s) performing work on the Infrastructure and upon request by GTEC provide proof to GTEC that such sub-contractor(s) have been paid. (k) No payment of the Grant, or installment thereof, nor any use or occupancy of Infrastructure by GTEC and/or City, shall be interpreted to constitute an acceptance of any Infrastructure work not constructed in strict accordance with the Plans and Specifications. (l) GTEC may decline to make payment of an installment of the Grant, may withhold funds, and, if necessary, may demand the return of some or all the amounts of the installments of the Grant previously paid to Company, to protect GTEC and/or City from loss in the event: (1) Defective Infrastructure work not remedied by Company or, in the reasonable opinion of City, not likely to be remedied by the Company; (2) Substantiated claims of third parties against GTEC and/or City or their property with respect to the Infrastructure costs related to the construction thereof and such claims arising prior to acceptance of the Infrastructure by the City; (3) Failure by Company to pay Contractor or others under contract with Company with respect to the Infrastructure in a prompt and proper fashion, excluding such instances of non-payment as allowed pursuant to the terms of contract between Company and Contractor; (4) Evidence that the balance of the Infrastructure work cannot be completed in accordance with this Agreement; (5) Evidence that the Infrastructure work will not be completed in the time set forth in Section 3.1(a), but subject to Force Majeure and any permissible delay set forth in this Agreement; (6) Persistent failure to carry out the Infrastructure work in accordance with this Agreement; and (7) Damage to GTEC and/or City or a third party to whom GTEC and/or City is, or may be, liable and that is the responsibility of Company under this Agreement. 3.11 Current Revenue. The Grant made hereunder shall be paid solely from lawful available funds, which have been appropriated by GTEC. Under no circumstances shall the obligations of GTEC hereunder be deemed to create any debt within the meaning of any Page 152 of 170 PAGE 14 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) constitutional or statutory provision. Consequently, notwithstanding any other provision of this Agreement, GTEC shall have no obligation or liability to pay the Grant except as allowed by law. 3.12 Grant Limitations. GTEC shall not be obligated to pay any commercial bank, lender or similar institution for any loan or credit agreement made by Company. None of the obligations of GTEC under this Agreement shall be pledged or otherwise encumbered in favor of any commercial lender and/or similar financial institution. Article IV Conditions to Economic Development Grant The obligation of GTEC to pay the Grant and any installments thereof to Company shall be conditioned upon the compliance and satisfaction by Company of the terms and conditions of this Agreement and each of the conditions set forth in this Article; provided that failure to meet a condition shall not prevent the payment of an installment of the Grant prior to the specified deadline for satisfaction of the condition. 4.1 Good Standing. As a condition of payment of the Grant, or any installment thereof, Company shall not have an uncured breach or default of this Agreement or a Related Agreement. 4.2 Payment Request. Company shall, as a condition precedent to the payment of the Grant or any installment thereof, timely provide GTEC with the applicable Payment Request. 4.3 Schedule of Capital Investment and Jobs. The Capital Investment shall be at least Twenty-Four Million Dollars ($24,000,000.00) as of the date of Completion of Construction of the Project. Company shall within thirty (30) days after the Completion of Construction of the Project provide GTEC with copies of receipts and other records as GTEC may reasonably request evidencing the required Capital Investment. No minimum number or jobs is required to be created or retained by Company. 4.4 Compliance with the UDC. The Land and any improvements constructed thereon shall comply with the UDC standards for non-residential development, as well as design and materials for non-residential development for all building facades. 4.6 Master Plan. Company shall have prepared and submit to the City a conceptual master plan for the Land which shall comply with the minimum design standards and other details as required by the zoning ordinance as of the Effective Date for the development of the Phase I Improvements. 4.7 Construction of the Project. Company shall, subject to events of Force Majeure, cause Commencement of Construction of the Project to occur on or before March 1, 2023, and shall, subject to events of Force Majeure, cause Completion of Construction of the Project and the Infrastructure to occur within twenty-four (24) months thereafter. Page 153 of 170 PAGE 15 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) Article V Termination 5.1 This Agreement shall terminate upon any one or more of the following: (a) by written agreement of the Parties; (b) Expiration Date; (c) upon written notice by either Party in the event the other Party breaches any of the terms or conditions of this Agreement or a Related Agreement and such breach is not cured within thirty (30) days after written notice thereof; (d) upon written notice by GTEC, if Company suffers an event of Bankruptcy or Insolvency; (e) upon written notice by GTEC, if any Impositions owed to GTEC and/or City or the State of Texas by Company shall become delinquent and the delinquency has not been resolved within thirty (30) days after written notice is delivered pursuant to this Agreement (provided, however, Company retains the right to timely and properly protest and contest any such Impositions); (f) upon written notice by either Party, if any subsequent Federal or State legislation or any decision of a court of competent jurisdiction declares or renders this Agreement invalid, illegal, or unenforceable; and (g) upon written notice by Company, at any time prior to Commencement of Construction. 5.2 In the event this Agreement is terminated by GTEC pursuant to Section 5.1(c), (d), (e), or (f), for an uncured breach by Company GTEC’s sole remedy shall be as provided by this Section 5.2. GTEC may withhold such actual costs incurred and such amounts from the Grant for work not completed by Company, or portions of the Project not accepted by GTEC, as determined by the Project Engineer, and verified by GTEC, as of the date of termination. In the event the actual costs for Completion of Construction of the remainder of the Infrastructure exceed the Maximum Grant Amount, Company shall thereafter be liable for such excess costs (“Termination Cost”) which Company shall immediately pay to GTEC upon GTEC’s demand, plus interest at the rate periodically announced by the Wall Street Journal as the prime or base commercial lending rate, or if the Wall Street Journal shall ever cease to exist or cease to announce a prime or base lending rate, then at the annual rate of interest from time to time announced by Citibank, N.A. (or by any other New York money center bank selected by GTEC) as its prime or base commercial lending rate, which shall accrue from the date the demand is made until paid in full. 5.3 Termination by Company. In the event this Agreement is terminated by Company pursuant to Section 5.1(c) for an uncured breach by GTEC, Company's sole remedy shall be: (i) Page 154 of 170 PAGE 16 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) the payment for Eligible Costs incurred and paid by Company for the design and construction of the Infrastructure work that has been completed and accepted by the City which has not previously been offset by prior Grant payments by GTEC to Company; and (ii) and the retention of the amount of the installments of the Grant previously paid by GTEC to Company, as of the date of such termination not to exceed the Maximum Grant Amount; and Company shall have no further rights or obligations hereunder. 5.4 Offsets. GTEC may, at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due to GTEC and/or City from Company, regardless of whether the amount due arises pursuant to the terms of this Agreement, a Related Agreement or otherwise, and regardless of whether the debt due GTEC and/or City has been reduced to judgment by a court. Article VI Miscellaneous 6.1 Binding Agreement; Assignment. This Agreement shall be binding upon and inure to the benefit of the heirs, successors, affiliates, administrators, executors, and permitted assigns of the respective Parties. This Agreement may not be assigned without the prior written consent of GTEC, which consent shall not be unreasonably withheld, conditioned, or delayed. 6.2 Limitation on Liability. It is acknowledged and agreed by the Parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the Parties. It is understood and agreed among the Parties that the Parties, in satisfying the conditions of this Agreement, have acted independently, and GTEC assumes no responsibilities or liabilities to third parties in connection with these actions. 6.3 Authorization. Each Party represents that it has full capacity and authority to grant all rights and assume all obligations that are granted and assumed under this Agreement. The undersigned officers and/or agents of the Parties are the properly authorized officials and have the necessary authority to execute this Agreement on behalf of the Parties. 6.4 Notice. Any notice required or permitted to be delivered hereunder shall be deemed received (i) three (3) days after deposit in United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the Party at the address set forth below, or such other address as is designated by the applicable Party from time to time, or (ii) on the day received if sent by courier or otherwise hand delivered. Page 155 of 170 PAGE 17 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) If intended for GTEC, to: President Georgetown Transportation Enhancement Corporation City of Georgetown 300-1 Industrial Avenue Georgetown, Texas 78626 If intended for the City, to: David Morgan, City Manager City of Georgetown 808 Martin Luther King Jr. St. Georgetown, Texas 78626 With a copy to: Skye Masson, City Attorney City of Georgetown 808 Martin Luther King Jr. St. Georgetown, Texas 78626 If intended for Company, to: JSACQ / Georgetown, LP Attn: Grant E. Pearson, Vice President 825 Town & Country Ln. Suite 1200 Houston, Texas 77024 With a copy to: JSACQ / Georgetown, LP Attn: John Stone Chief Financial Officer 4890 Alpha Road, Ste. 100 Dallas, Texas 75244 6.5 Entire Agreement. This Agreement is the entire Agreement between the Parties with respect to the subject matter covered in this Agreement. There is no other collateral oral or written Agreement between the Parties that in any manner relates to the subject matter of this Agreement, except as provided in any Exhibits attached hereto. 6.6 Governing Law. This Agreement shall be governed by the laws of the State of Texas, and venue for any action concerning this Agreement shall be in the State District Court of Williamson County, Texas. The Parties agree to submit to the personal and subject matter jurisdiction of said Court. 6.7 Amendment. This Agreement may be amended by the mutual written agreement of the Parties. 6.8 Legal Construction. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention of the Parties that in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision be added to this Agreement which is legal, valid and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 6.9 Recitals. The recitals to this Agreement are incorporated herein. Page 156 of 170 PAGE 18 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) 6.10 Counterparts. This Agreement may be executed in counterparts. Each of the counterparts shall be deemed an original instrument, but all the counterparts shall constitute one and the same instrument. 6.11 Exhibits. Any exhibits to this Agreement are incorporated herein by reference for the purposes wherever reference is made to the same. 6.12 Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the Parties, as well as any rights and benefits of the Parties, pertaining to a period of time following the termination of this Agreement shall survive termination. 6.13 Employment of Undocumented Workers. During the term of this Agreement, Company agrees not to knowingly employ any undocumented workers and, if convicted of a violation under 8 U.S.C. Section 1324a (f), Company shall repay the amount of the Grant and any other funds received by Company from GTEC as of the date of such violation within 120 days after the date Company is notified by GTEC of such violation, plus interest at the rate of four percent (4%) compounded annually from the date of violation until paid. Company is not liable for a violation of this section by a subsidiary, affiliate, or franchisee of Company or by a person with whom Company contracts. 6.14 Boycott Israel; Boycott Energy Companies; and Prohibition of Discrimination against Firearm Entities and Firearm Trade Associations. (a) Company verifies that it does not Boycott Israel and agrees that during the term of the Agreement will not Boycott Israel as that term is defined in Texas Government Code Section 808.001, as amended. (b) Company verifies that it does not Boycott Energy Companies and agrees that during the term of this Agreement will not Boycott Energy Companies as that term is defined in Texas Government Code Section 809.001, as amended. (c) Company verifies that it does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association as those terms are defined in Texas Government Code Section 2274.001, as amended; and (ii) will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. (d) This section does not apply if Company is a sole proprietor, a non-profit entity, or a governmental entity; and only applies if: (i) Company has ten (10) or more fulltime employees and (ii) this Agreement has a value of $100,000.00 or more to be paid under the terms of this Agreement. 6.15 Conditions Precedent. This Agreement is expressly subject to, and the obligations of the Parties are conditioned upon (i) GTEC obtaining authority to undertake the obligations Page 157 of 170 PAGE 19 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) herein as an authorized project under the Act, sixty (60) days after public hearing and notice thereof; and (ii) City Tax Increment Reimbursement Agreement is fully executed. [Signature Page to Follow] Page 158 of 170 PAGE 20 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) EXECUTED on this ______ day of ___________________, 2021. GEORGETOWN TRANSPORTATION ENHANCEMENT CORPORATION By: John Marler, President EXECUTED on this _____ day of ____________________, 2021. JSACQ / GEORGETOWN, LP, a Texas limited partnership By: JSC / Georgetown GP, LLC, a Texas limited liability company, its general partner By: Name: Title: Page 159 of 170 PAGE 21 ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) CERTIFICATION OF CITY COUNCIL APPROVAL I hereby certify that the foregoing Economic Development Incentive Agreement of the Georgetown Transportation Enhancement Corporation and the Project described therein was approved by the City Council of the City of Georgetown, Texas, on the _____ day of ____________________, 2021. THE CITY OF GEORGETOWN, TEXAS A Texas home-rule municipality By: _________________________________ Josh Schroeder, Mayor By: _________________________________ Robyn Densmore, City Secretary APPROVED AS TO FORM: By: _________________________________ Skye Masson, City Attorney Page 160 of 170 PAGE 1 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) EXHIBIT “A” Description of the Land North Georgetown TIRZ #6 Preliminary Project & Financing Plan Exhibit 1 – Metes & Bounds Description of Property FIELD NOTES FOR A 119.784 ACRE TRACT OF LAND: BEING A 119.784 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 119.784 ACRE TRACT, BEING ALL OF THAT CALLED 111.36 ACRE TRACT OF LAND KNOWN AS "TRACT I", THE REMAINING PORTION OF THAT CALLED 7.3 ACRE TRACT OF LAND KNOWN AS "TRACT II", AND ALL OF THAT CALLED 2.12 ACRE TRACT OF LAND KNOWN AS "TRACT III", RECORDED IN VOLUME 512, PAGE 71, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, AND BEING ALL OF THAT CALLED 3.05 ACRE TRACT OF LAND RECORDED IN VOLUME 545, PAGE 392, DEED RECORDS, WILLIAMSON COUNTY, TEXAS, BEING THE SAME PROPERTY CONVEYED TO JASPER N. SUDDUTH AND WIFE, IDA P. SUDDUTH IN INSTRUMENT RECORDED IN VOLUME 512, PAGE 71 AND BEING ALL OF THE SAME PROPERTY CONVEYED TO DONALD HOYLE AND WIFE, PATSY S. HOYLE IN INSTRUMENT RECORDED IN VOLUME 545, PAGE 392; SAID 119.784 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1/2" iron rod located for the northwest corner of the remainder of said 7.3 acre tract, the northeast corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, being an angle point of that called 104.89 acre tract of land recorded in Document No. 2008016952, Official Public Records, Williamson County, Texas, said point being the northwest corner of the herein described tract of land; Thence, with the northwest lines of the remainder of said 7.3 acre tract, said 2.12 acre tract, and said 111.36 acre tract, the southeast lines of said 104.89 acre tract, the following two (2) courses and distances: 1. N 64° 22' 55" E, a distance of 197.60' (Record per Doc. No. 2008016952: N 65° 45' 36" E, a distance of 197.59'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. N 68° 12' 57" E, a distance of 1820.19' (Record per Doc. No. 2008016952: N 69° 36' 19" E, a distance of 1820.51'), to a 1" square iron pipe located for an Page 161 of 170 PAGE 2 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) angle point of said 111.36 acre tract, being the southeast corner of said 104.89 acre tract, the southwest corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; 3. Thence, with the northwest line of said 111.36 acre tract, the southeast line of said 72.32 acre tract, N 70° 40' 37" E, passing a 1" iron pipe located at a distance of 656.89', continuing a total distance of 659.38' (Record: N 74° 10' 00" E, a distance of 658.61')(Record per Vol. 886, Pg. 335: N 72° 57' 00" E, a distance of 658.13')(Record per Doc. No. 2006017468: N 70° 39' 41" E, a distance of 659.38'), to a 1/2" iron rod located in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the northeast corner of said 111.36 acre tract, said point being the northeast corner of the herein described tract of land; 4. Thence, with the northwest right-of-way line of Interstate Highway 35 Frontage Road, the southeast line of said 111.36 acre tract, S 13° 56' 20" W, passing a TxDOT concrete monument located at a distance of 543.58', a TxDOT concrete monument located at a distance of 1000.60', a TxDOT concrete monument located at a distance of 2001.10', continuing 100.54' for a total distance of 3645.82' (Record per Doc. No. 2006017468: S 13° 56' 29" W, a distance of 3646.70'), to a calculated point in a power pole in the northwest right-of-way line of Interstate Highway 35 Frontage Road as shown in Document No. 2006017468, Official Public Records, Williamson County, Texas, being the southeast corner of said 111.36 acre tract, said point being the southeast corner of the herein described tract of land; 5. Thence, departing the northwest right-of-way line of Interstate Highway 35 frontage road, with the southeast lines of said 111.36 acre tract, said 2.12 acre tract, and the remainder of said 7.3 acre tract, the northwest line of that called 1.249 acre tract of land known as "Second Tract", recorded in Volume 1732, Page 249, Deed Records, Williamson County, Texas, S 67° 42' 10" W, passing a 3/8" iron rod located at a distance of 0.42' for the northeast corner of said 1.249 acre tract, a 1/2" iron rod located at a distance of 994.53' for the northwest corner of said 1.249 acre tract, continuing 56.01' for a total distance of 1050.96' (Record per Vol. 1732, Pg. 249: S 71° 00' 00" W, a distance of 990.14'), to a calculated point in the center of Dry Berry Creek, being the southwest corner of the remainder of said 7.3 acre tract, the southeast corner of that called 45.00 acre tract of land recorded in Page 162 of 170 PAGE 3 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) Document No. 2004002927, Official Public Records, Williamson County, Texas, being in a northwest line of that called 71.997 acre tract of land recorded in Document No. 2008000666, Official Public Records, Williamson County, Texas, said point being the southwest corner of the herein described tract of land; Thence, with the approximate center line of Dry Berry Creek, the following twelve (12) courses and distances: 6. N 18° 43' 13" W, a distance of 119.07', to a calculated point for an angle point of the herein described tract of land; 7. N 08° 20' 24" W, a distance of 77.91', to a calculated point for an angle point of the herein described tract of land; 8. N 06° 15' 48" E, a distance of 102.38', to a calculated point for an angle point of the herein described tract of land; 9. N 16° 24' 06" E, a distance of 224.02', to a calculated point for an angle point of the herein described tract of land; 10. N 07° 44' 03" E, a distance of 168.85', to a calculated point for an angle point of the herein described tract of land; 11. N 07° 06' 33" W, a distance of 204.47', to a calculated point for an angle point of the herein described tract of land; 12. N 11° 33' 16" W, a distance of 283.45', to a calculated point for an angle point of the herein described tract of land; 13. N 13° 30' 25" W, a distance of 113.69', to a calculated point for an angle point of the herein described tract of land; 14. N 19° 16' 42" W, a distance of 358.97', to a calculated point for an angle point of the herein described tract of land; 15. N 21° 52' 20" W, a distance of 91.57', to a calculated point for an angle point of the herein described tract of land; Page 163 of 170 PAGE 4 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) 16. N 32° 08' 36" W, a distance of 49.98', to a calculated point for an angle point of the herein described tract of land; 17. N 42° 07' 33" W, a distance of 44.61', to a calculated point in the center of Dry Berry Creek, being in a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, said point being an exterior corner of the herein described tract of land; 18. Thence, departing the center of Dry Berry Creek, with a northwest line of the remainder of said 7.3 acre tract, a southeast line of said 54.3 acre tract, N 62° 51' 22" E, passing a 1/2" iron rod located for reference at a distance of 30.81', continuing 52.06' for a total distance of 82.87', to a 1/2" iron rod located for an interior corner of the remainder of said 54.3 acre tract, the southeast corner of said 54.3 acre tract, said point being an interior corner of the herein described tract of land, Thence, with the southwest lines of the remainder of said 7.3 acre tract, the northeast lines of said 54.3 acre tract, the following fourteen (14) courses and distances: 19. N 21° 45' 16" W, a distance of 131.35' (Record per Doc. No. 2014088568: N 20° 22' 13" W, a distance of 131.35'), to a 60D nail located for an angle point of the herein described tract of land; 20. N 20° 31' 05" W, a distance of 60.86' (Record per Doc. No. 2014088568: N 19° 06' 55" W, a distance of 60.76'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 21. N 30° 43' 16" W, a distance of 11.06' (Record per Doc. No. 2014088568: N 29° 19' 54" W, a distance of 11.05'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 22. N 22° 54' 40" W, a distance of 104.20' (Record per Doc. No. 2014088568: N 21° 31' 18" W, a distance of 104.14'), to a 1/2" iron rod located for an angle point of the herein described tract of land; Page 164 of 170 PAGE 5 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) 23. N 18° 03' 10" W, a distance of 130.05' (Record per Doc. No. 2014088568: N 16° 43' 03" W, a distance of 130.08'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 24. N 23° 12' 32" W, a distance of 100.95' (Record per Doc. No. 2014088568: N 21° 53' 07" W, a distance of 101.09'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 25. N 20° 47' 10" W, a distance of 180.56' (Record per Doc. No. 2014088568: N 19° 26' 34" W, a distance of 180.48'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 26. N 22° 02' 53" W, a distance of 104.75' (Record per Doc. No. 2014088568: N 20° 35' 52" W, a distance of 104.99'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 27. N 26° 22' 25" W, a distance of 33.25' (Record per Doc. No. 2014088568: N 24° 55' 24" W, a distance of 33.32'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 28. N 08° 48' 02" W, a distance of 6.36' (Record per Doc. No. 2014088568: N 07° 21' 01" W, a distance of 6.37'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 29. N 20° 14' 35" W, a distance of 16.17' (Record per Doc. No. 2014088568: N 18° 49' 16" W, a distance of 16.18'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 30. N 20° 03' 30" W, a distance of 17.68' (Record per Doc. No. 2014088568: N 18° 38' 11" W, a distance of 17.69'), to a 1/2" iron rod with a blue "QUICK INC RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 31. N 20° 06' 15" W, a distance of 231.63' (Record per Doc. No. 2014088568: N 18° 40' 56" W, a distance of 231.73'), to a 1/2" iron rod with a blue "QUICK INC Page 165 of 170 PAGE 6 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) RPLS 6447" plastic cap set for an angle point of the herein described tract of land; 32. N 19° 32' 43" W, a distance of 110.22' (Record per Doc. No. 2014088568: N 18° 07' 24" W, a distance of 110.27'), to the POINT OF BEGINNING containing 119.784 acres of land. Note: The basis of bearing was established using the Trimble VRS Network, NAD (83), Texas State Plane Coordinate System, Central Zone, 4203, US Survey Foot, Grid. A survey plat was prepared by a separate document. Page 166 of 170 PAGE 7 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) FIELD NOTES FOR A 104.884 ACRE TRACT OF LAND: BEING A 104.884 ACRE TRACT OF LAND, LOCATED IN THE WILLIAM ROBERTS SURVEY, ABSTRACT NO. 524, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT, BEING ALL OF THAT CALLED 104.89 ACRE TRACT OF LAND RECORDED IN DOCUMENT NO. 2020151834, OFFICIAL PUBLIC RECORDS, WILLIAMSON COUNTY, TEXAS; SAID 104.884 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: BEGINNING at a 1" square iron pipe located for the easternmost corner of said 104.89 acre tract, the southernmost corner of that called 72.32 acre tract of land recorded in Volume 886, Page 335, Deed Records, Williamson County, Texas, being an angle point of that called 111.36 acre tract of land known as "Tract 1", recorded in Volume 512, Page 71, Deed Records, Williamson County, Texas, said point being the easternmost corner of the herein described tract of land; Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 111.36 acre tract, the following two (2) courses and distances: 1. S 68° 12' 57" W, a distance of 1820.19' (Record: S 69° 36' 19" W, a distance of 1820.51'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 2. S 64° 22' 55" W, a distance of 197.60' (Record: S 65° 45' 36" W, a distance of 197.59'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, the westernmost corner of said 111.36 acre tract, the northernmost corner of that called 54.3 acre tract of land recorded in Document No. 2014088568, Official Public Records, Williamson County, Texas, said point being an angle point of the herein described tract of land; Page 167 of 170 PAGE 8 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) Thence, with the southeast lines of said 104.89 acre tract, the northwest lines of said 54.3 acre tract, the following two (2) courses and distances: 3. S 69° 29' 55" W, a distance of 320.10' (Record: S 70° 51' 03" W, a distance of 319.99'), to a 1/2" iron rod located for an angle point of the herein described tract of land; 4. S 69° 03' 58" W, a distance of 499.96' (Record: S 70° 29' 45" W, a distance of 500.56'), to a 1/2" iron rod located for the southernmost corner of said 104.89 acre tract, the easternmost corner of that called 33.63 acre tract of land recorded in Document No. 2004079454, Official Public Records, Williamson County, Texas, being an angle point of said 54.3 acre tract, said point being the southernmost corner of the herein described tract of land; 5. Thence, with the southwest line of said 104.89 acre tract, the northeast line of said 33.63 acre tract, N 21° 34' 01" W, a distance of 1625.97' (Record: N 20° 09' 53" W, a distance of 1624.84'), to a 1/2" iron rod located for the westernmost corner of said 104.89 acre tract, the northernmost corner of said 33.63 acre tract, being in a southeast line of that called 284.03 acre tract of land recorded in Volume 656, Page 620, Deed Records, Williamson County, Texas, said point being the westernmost corner of the herein described tract of land; 6. Thence, with a northwest line of said 104.89 acre tract, the southeast line of said 284.03 acre tract, N 69° 02' 47" E, a distance of 1795.12' (Record: N 70° 23' 23" E, a distance of 1795.28'), to a 1/2" iron rod located for an angle point of said 104.89 acre tract, an angle point of said 284.03 acre tract, an angle point of said 72.32 acre tract, said point being an angle point of the herein described tract of land; Thence, with the common boundary lines of said 104.89 acre tract and said 72.32 acre tract, the following three (3) courses and distances: 7. N 69° 38' 42" E, a distance of 1053.77' (Record: N 71° 03' 05" E, a distance of 1053.79'), to a 1" square iron pipe located for the northernmost corner of the herein described tract of land; Page 168 of 170 PAGE 9 EXHIBIT “A” TO ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) 8. S 21° 18' 14" E, a distance of 554.64' (Record: S 19° 54' 18" E, a distance of 554.70'), to a 3/8" iron rod located for an angle point of the herein described tract of land; S 21° 04' 34" E, a distance of 1020.48' (Record: S 19° 42' 15" E, a distance 1020.54') to the POINT OF BEGINNING containing 104.884 acres of land Page 169 of 170 EXHIBIT “B” Description of Infrastructure SOLO PAGE EXHIBIT “B” ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT GTEC AND JSACQ / GEORGETOWN, LP (TM 125893) Page 170 of 170