HomeMy WebLinkAboutRES 011425-5.F - Shell Road MUD - First Amendment to Consent AgreementRESOLUTION NO. O (I 4 oZS -S. r
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS APPROVING THE FIRST AMENDMENT TO
THE CONSENT AGREEMENT BY AND BETWEEN THE CITY,
LENNAR HOMES OF TEXAS LAND AND CONSTRUCTION, LTD.;
AND THE SHELL ROAD MUNICIPAL UTILITY DISTRICT, MAKING
RELATED FINDINGS; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City, Green Builders, Inc., and the Shell Road Municipal Utility District
(the "District") entered into that certain Consent Agreement dated to be effective on
approval of the District and recorded in the Official Records of Williamson County,
Texas, as Document No. 2019042993 (the "Original Consent Agreement").
WHEREAS, an order authorizing creation of the District was issued by the Texas
Commission on Environmental Quality (the "TCE ") on October 14, 2019 authorizing
the creation of a municipal utility district over 317.080 acres of land located in the City of
Georgetown, Williamson County, Texas (the "Land").
WHEREAS, the District approved and joined the Original Consent Agreement on
January 24, 2020.
WHEREAS, per the order adopted by the Board of Directors of the District on November
9, 2020 and recorded as Document No. 2020141037 in the Official Public Records of
Williamson County, Texas, an election was held on November 3, 2020 confirming
creation of the District over the Land and authorizing the levy of taxes and issuance of
bonds by the District.
WHEREAS, by Assignment and Assumption Agreement dated September 13, 2021,
Green Builders, Inc. assigned its interest in the Original Consent Agreement and the
Parkland Agreement to Lennar Homes of Texas Land and Construction, Ltd., a Texas
limited partnership ("Developer"), and by Resolution No. 061323-5.G. dated June 13,
2023, the City Council consented to the assignments.
WHEREAS, Developer has requested an amendment to Section 5.04 of the Original
Consent Agreement to increase the Bond Limit Amount from $39,500,000 to
$54,940,000 to finance changes to the project relating to constructing a new wastewater
line that was not originally envisioned, along with related easement acquisition and
engineering costs, as well as unanticipated changes to the land plan necessitated by
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Shell Road MUD — First Amendment to Consent Agreement
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geographical features and drainage issues.
WHEREAS, the Developer's revised Finance Plan envisions the issuance of
$54,940,000 in 25-year term bonds via 5 separate bond series beginning in 2025 and
ending in 2029, and the City's Financial Advisor has determined that the revised Finance
Plan complies with the other terms and timetables of the Original Consent Agreement,
the City's MUD Policy, and the TCEQ's rules relating to economic feasibility for in -City
Texas municipal utility districts.
WHEREAS, as consideration for increasing the Bond Limit Amount, Developer has
agreed to increase the per unit amount of the Developer's Shell Road Expansion
Contribution from $1,650 per Dwelling Unit to $3,100 per Dwelling Unit with a
corresponding increase to the total amount of the contribution; to add a reporting
requirement for tracking the milestones in the Agreement, and to clarify that the amount
of any development and utility fees is the amount in effect at the time the fees are due to
be paid in the course of development, as those fees may increase from time to time during
the term of the Agreement.
WHEREAS, the City Council desires to approve the First Amendment to the Consent
Agreement in the form attached to this Resolution as Attachment 1.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
GEORGETOWN, TEXAS, THAT:
SECTION 1: The foregoing recitals are found to be true and correct and are incorporated
into this Resolution by this reference for all purposes.
SECTION 2: The City Council of the City of Georgetown, Texas hereby approves the First
Amendment to the Consent Agreement in the form attached to this Resolution as
Attachment 1.
SECTION 3: It is hereby officially found and determined that the meeting at which this Resolution
was considered was open to the public, and public notice of the time, place, and purpose of said
meeting was given, all as required by the Texas Open Meetings Act, Chapter 551, Texas
Government Code.
SECTION 4 The Mayor is hereby authorized to sign this Resolution and the First Amendment
attached to this Resolution as Attachment 1, and the City Secretary is authorized to attest. This
Resolution shall become on its passage.
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Shell Road MUD — First Amendment to Consent Agreement
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Attachments:
Attachment 1: First Amendment to Consent Agreement - Shell Road MUD.
RESOLVED this 411- day of 2025.
CITY OF GEORGETOWN, TEXAS
M
Attest:
By:
Robyn Densmore, City Secretary
Approved as to form:
By: `r-
Skye Masson, City Attorney
Resolution No. 0 I i L{ A-5 -5• F
Shell Road MUD - First Amendment to Consent Agreement
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FIRST AMENDMENT TO
CONSENT AGREEMENT
BY AND AMONG
THE CITY OF GEORGETOWN, TEXAS
AND
LENNAR HOMES OF
TEXAS LAND AND
CONSTRUCTION, LTD
AND
SHELL ROAD MUNICIPAL UTILITY DISTRICT
First Amendment to Consent Agreement Page 1 of 8
Shell Road MUD
FIRST AMENDMENT TO CONSENT AGREEMENT
THE STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
THIS FIRST AMENDMENT TO CONSENT AGREEMENT ("First Amendment") is
entered into by and among the City of Georgetown, Texas ("CLty" ), Lennar Homes of
Texas Land and Construction, Ltd., a Texas limited partnership ("Dez)el oJ)er"); and Shell
Road Municipal Utility District, a municipal utility district created pursuant to the
Original Consent Agreement under Chapters 49 and 54 of the Texas Water Code (
"District"), (each a "Party" and collectively "the Parties"), acting by and through their
respective duly authorized representatives.
RECITALS
WHEREAS, the City, Green Builders, Inc., and the District entered into that certain
Consent Agreement dated to be effective on approval of the District and recorded in the
Official Records of Williamson County, Texas, as Document No. 2019042993 (the
"Original Consent Agreement").
WHEREAS, an order authorizing creation of the District was issued by the Texas
Commission on Environmental Quality (the "TCEQ") on October 14, 2019 authorizing
the creation of a municipal utility district over 317.080 acres of land located in the City of
Georgetown, Williamson County, Texas owned by the Developer (the "Land").
WHEREAS, the District approved and joined the Original Consent Agreement on
January 24, 2020.
WHEREAS, per the order adopted by the Board of Directors of the District on
November 9, 2020 and recorded as Document No. 2020141037 in the Official Public
Records of Williamson County, Texas, an election was held on November 3, 2020
confirming creation of the District over the Land and authorizing the levy of taxes and
issuance of bonds by the District.
WHEREAS, by Assignment and Assumption Agreement dated September 13,
2021, Green Builders, Inc. assigned its interest in the Original Consent Agreement and
the Parkland Agreement to Developer, and by Resolution No. 061323-5.G. dated June 13,
2023, the City Council consented to the assignments.
WHEREAS, Developer has requested an amendment to Section 5.04 of the
First Amendment to Consent Agreement Page 2 of 8
Shell Road MUD
Original Consent Agreement to increase the Bond Limit Amount from $39,500,000 to
$54,940,000 to finance changes to the project relating to constructing a new wastewater
line that was not originally envisioned, along with related easement acquisition and
engineering costs, as well as unanticipated changes to the land plan necessitated by
geographical features and drainage issues.
WHEREAS, the Developer's revised Finance Plan envisions the issuance of
$54,940,000 in 25-year term bonds via 5 separate bond series beginning in 2025 and
ending in 2029, and the City's Financial Advisor has determined that the revised Finance
Plan complies with the other terms and timetables of the Original Consent Agreement,
the City's MUD Policy, and the TCEQ's rules relating to economic feasibility for in -City
Texas municipal utility districts.
WHEREAS, as consideration for increasing the Bond Limit Amount, Developer
has agreed to increase the per unit amount of the Developer's Shell Road Expansion
Contribution from $1,650 per Dwelling Unit to $3,100 per Dwelling Unit with a
corresponding increase to the total amount of the contribution; to add a reporting
requirement for tracking the milestones in the Agreement, and to clarify that the amount
of any development and utility fees is the amount in effect at the time the fees are due to
be paid in the course of development, as those fees may increase from time to time during
the term of the Agreement.
NOW THEREFORE, in consideration of the foregoing recitals and mutual
agreements set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are all hereby acknowledged, the Parties agree as follows:
AGREEMENT
1. Effect of Recitals. The foregoing Recitals are found to be true and correct and are
incorporated into this First Amendment for all purposes by this reference.
2. Amendments to Original Consent Agreement. The Original Consent Agreement
is hereby amended as follows:
a. Section 1.01 Definitions. The two definitions of "Developer's Shell Road
Expansion Contribution" and "Developer's Park Fes" in Section 101 of the Original
Consent Agreement are hereby deleted in their entirety and replaced with the following
two definitions:
Developer's Shell Road Expansion Contribution: means at least TWO MILLION
FIVE HUNDRED U.S. DOLLARS ($2,500,000) to be paid to the City
pursuant to Section 12.02 of this Agreement.
First Amendment to Consent Agreement Page 3 of 8
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Developer's Park Fees: means a minimum of five hundred thousand U.S.
DOLLARS ($500,000), which is the amount that Developer must expend
towards construction of the Parkland Improvements within the two three -
acre neighborhood parks on the Land. The term does not include park
dedication/development fees for multi -family development or design or
other non -construction costs, expenses, or fees.
b. Section 5.04. Subsection 5.04 of the Original Consent Agreement is hereby
deleted in its entirety and replaced with the following:
5.04 Amount of Bonds. In consideration of the City's consent to the
creation of the District, the District agrees that the total amount of Bonds
issued by the District for all purposes shall not exceed FIFTY FOUR
MILLION, NINE HUNDRED FORTY THOUSAND DOLLARS
($54,940,000) (the "Bond Limit Amount") for all purposes. City, Developer,
and the District acknowledge and agree that the Bond Limit Amount is
sufficient to accomplish the purposes of the District, and that Developer
and the District have voluntarily agreed to the Bond Limit Amount.
Improvements or facilities, if any, which exceed the Bond Limit Amount,
shall be dedicated to the District without reimbursement unless otherwise
approved by the City Council. The District must issue its Bonds for the
purpose of financing reimbursable expenses under Section 49.155 of the
Texas Water Code and for the purposes authorized in this Agreement prior
to or simultaneously with issuance of Bonds for any other purpose.
C. Section 7.04. New Section 7.04 "Annual Reports" is hereby added to the
Original Consent Agreement:
7.04 Annual Reports. Before February 1 of each calendar year, the
Developer shall submit a report to the City Manager that includes, for the
prior calendar year, the following information: (1) the total number of legal
lots on the Land for which plats have been recorded in the Official Public
Records of Williamson County, Texas; (2) the total number of Lots on the
land for which final plat applications have been submitted to the City and
remain pending; (3) the number of building permits issued for Structures
on the Land; (4) the number of water and wastewater connections made on
the Land; (5) a description of which requirements in this Agreement were
triggered in the previous calendar year; and (6) a description of how and
when the triggered requirements were satisfied.
d. Section 12.02. Section 12.02 of the Original Consent Agreement
First Amendment to Consent Agreement Page 4 of 8
Shell Road MUD
is hereby deleted in its entirety and replaced with the following:
12.02 Developer's Shell Road Expansion Contribution - Payment.
Developer shall: (i) pay a supplemental transportation fee of $3,100 per Dwelling
Unit (including single-family and multi -family units) to be paid to City at time of
building permit to satisfy the contribution for the costs to design and construct the
Shell Road Expansion; and (ii) shall without cost to the City dedicate and convey
the necessary right-of-way for the Shell Road Expansion. Any costs for the Shell
Road Expansion in excess of $2,500,000 shall be paid by the City.
e. Section 14.03 of the Original Consent Agreement is hereby deleted in its
entirety and replaced with the following:
14.03 Other Development and Utility Fees. Developer shall pay or
cause to be paid the City's usual and customary development and utility
connection fees (e.g., water and wastewater meter connect fees and
engineering and inspection fees. The amount of such development and
utility fees is the amount in effect at the time the fees are due to be paid in
the course of development and utility connection, as those fees may
increase from time to time during the term of the Agreement.
3. Defined Terms. Capitalized terms used in this First Amendment that are not
otherwise defined shall have the meanings set forth in the Original Consent Agreement.
4. Counterparts. This First Amendment may be executed in multiple
counterparts, each of which shall be deemed an original instrument, and all of which,
taken together, shall constitute one and the same instrument. The signature of any party
hereto to any counterpart hereof shall be deemed a signature to, and may be appended
to, any other counterpart hereof.
5. Effective Date. This First Amendment shall be effective on the latest date
accompanying the signature of the duly authorized representatives of the Parties
appearing below.
First Amendment to Consent Agreement Page 5 of 8
Shell Road MUD
6. Recording. This First Amendment will be recorded in the Official Records of
Williamson County, Texas by Developer at Developer's expense.
CITY: CITY OF GEORGETOWN, TEXAS
Schroeder, Mayor
ATTEST:
By: 4�
Robyn - ensmore, City Secretary
APPROVED AS TO FORM:
By: �—
Skye Mass n, City Attorney
STATE OF TEXAS §
COUNTY OF WILLIAMSON §
This instrument was acknowledged before me on the day o�Oe-rul
2024, by Josh Schroder, Mayor of the City of Georgetown, exas, a ity, on
behalf of the City.
KAREN FROST
(seal)S Notary Public, State of Texas
Comm. Expires 05-24-2028
Notary ID 10536084
'a, -! -
Notary Public, ' a to of Texas
First Amendment to Consent Agreement
Shell Road MUD
Page 6 of 8
DEVELOPER: LENNAR HOMES OF TEXAS LAND AND
CONSTRUCTION, LTD., a Texas limited partnership
By: U.S. Home Corporation, a Texas corporation
it's General Partner
By:
Printed Name: 1`�&7/Ne' ',14
Title: 4Ur7vove/ 7C-v
STATE OF TEXAS §
COUNTY OF TRAVIS §
This instrument was acknowledged before me on thelY day of
2024, by , Auryo.eaelo /f-6�hv1P'-of U.S.
Home Corporation, a Texas corporation and General Partner of Lennar Homes of Texas
Land and Construction, Ltd., a Texas limited partnership, on behalf of said limited
partnership .
,%%qY P"�i, NGA NGUYEN
4
U
(seal) =_ "Notary Public, State of Texas
a° mac` Comm. Expires 08-12-2027
%;��� Notary ID 128700324 y
No Notary P lic State o a land
First Amendment to Consent Agreement Page 7 of 8
Shell Road MUD
DISTRICT: SHELL ROAD MUNICIPAL UTILITY
DISTRICT, a Texas municipal utility district
By:
Printed Name: V( Arias SIb W e
Title: Board President
ATTEST:
By: .P
Printed Name: {i� �e 0'f
Title: Board Secretary
STATE OF TEXAS §
§
COUNTY OF WILLIAMSON §
This instrument was acknowledged before me on the L%rday of 71x.,LA�_
202,(Iby V my\t SSek %M f-- President of the Board of Directors of the Shell
Road Municipal Utility District, on behalf of said District.
LAUREN HUGHES NO ubli State of Texas
�`� ����• Notary 10 #126326368
' MY Commission Expires
�` November 16, 2027
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