HomeMy WebLinkAboutResolution - 2021-R0091 - Economic Development Agreement with Westwind RealtyResolution No. 2021-R0091
Item No. 6.5.1
March 23, 2021
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute
for and on behalf of the City of Lubbock, an Economic Development Agreement for Wausau
Avenue street construction, by and between the City of Lubbock and Westwind Realty, L.P.,
and related documents. Said Agreement is attached hereto and incorporated in this resolution
as if fully set forth herein and shall be included in the minutes of the City Council.
Passed by the City Council on
ATTEST:
March 23, 2021
DANIEL M. POPE, MAYOR
Rebe ca Garza, City Secr at
APPROVED AS TO CONTENT:
JeslcEacYem, Assistant City Manager
I,0j uq
Assistant City Attorney
ccdocs/RES.Agrtnt- Wausau Avenue Construction
March 8, 2021
Resolution No. 2021-R0091
STATE OF TEXAS §
§ ECONOMIC DEVELOPMENT
§ AGREEMENT
COUNTY OF LUBBOCK §
This Economic Development Agreement ("Agreement") is made by and between the City of
Lubbock, Texas (the "City) and Westwind Realty, L.P. ("Developer"), acting by and through their respective
authorized officers and representatives.
RECITALS
WHEREAS Developer desires to develop, construct, operate, and maintain a medical center in
Lubbock, Texas near the Marsha Sharp Freeway and 82"d Street to provide improved access to health care
in the southwest metropolitan area; and
WHEREAS the City desires to encourage the development of readily accessible, quality health care
for the benefit of its citizens; and
WHEREAS the presence of the contemplated medical center will serve as an anchor for economic
development, and will stimulate other related and unrelated business and commerce in the area, which
in turn will create additional employment opportunities and generate tax revenue; and
WHEREAS existing infrastructure, including but not limited to Wausau Avenue, will not safely and
adequately accommodate the expected increase in activity associated with the medical center and the
resulting development surrounding it; and
WHEREAS City and Developer desire to apportion the costs of reconstructing Wausau Avenue
between Marsha Sharp Freeway and 82"d Street (the "Project") in a manner set forth herein; and
WHEREAS the City finds that the reconstruction of Wausau Avenue, and the sharing of costs
therefor, will further the public purposes and economic development goals of the City, and pursuant to
Chapter 380 of the TEXAS LOCAL GOVERNMENT CODE, further finds said activities to be a program in
furtherance of local economic development, business activity, and commercial activity.
NOW, THEREFORE, in consideration of the foregoing, and other valuable consideration, the
sufficiency and receipt of which are hereby acknowledged, the City and Developer (collectively, the
"Parties") agree as follows:
ECONOMIC DEVELOPMENT AGREEMENT— City of Lubbock/Westwind Realty, L.P. Page 1 of S
ARTICLE I
WASSAU AVENUE CONSTRUCTION AND PAVING PROJECT
The Parties agree that the City shall undertake all necessary preliminary activities to design the
Project and shall take, or cause to be taken, all of the activities set forth in the Opinion of Probable
Construction Cost ("OPCC) attached hereto as Exhibit "A" with respect to the Project, including preparing
right-of-way, asphalt removal, construction of curb and gutter, signalization, if any, signage, lighting, ADA
ramps, adjustment of manhole and valve boxes, and other customary road improvements.
ARTICLE II
CONSTRUCTION COST ALLOCATION
Developer shall tender to City, in a form acceptable to City, a portion of the costs directly
associated with the Project and set forth in the OPCC, in an amount not to exceed fifty percent (50%),
within twenty-one (21) days of presentment of written invoice to Developer. The Parties agree that the
maximum participation of Developer shall be in sum FOUR HUNDRED THOUSAND FIVE HUNDRED NINETY-
FOUR and 58/100 USD ($400,594.58).
ARTICLE III
REIMBURSEMENT AND GRANT
Upon completion of the Project and final satisfactory inspection, City shall grant to Developer, an
amount equal to all amounts invoiced and paid by Developer in Article II above, less and except an amount
equal to TWENTY-FIVE THOUSAND FIVE HUNDRED SIXTY-NINE and 87/100 USD ($25,569.87), which shall
constitute the agreed -upon separate cost to the City of construction design and oversight, payable by
Developer, and not apportioned between the Parties and subject to the grant hereunder.
ARTICLE IV
MISCELLANEOUS
4.1 Termination. This Agreement terminates upon the following:
(a) by written mutual agreement of all parties;
(b) by City, if Developer defaults or breaches any of the terms or conditions
of this Agreement and such default or breach is not timely cured;
ECONOMIC DEVELOPMENT AGREEMENT — City of Lubbock/Westwind Realty, L.P. Page 2 of 5
4.2 Default. In the event a party fails to comply with the terms of this Agreement and the
party fails to cure such failure within 30 days after written notice from the other party describing such
failure or if such failure cannot be cured within such 30 day period and the exercise of all due diligence,
then if a party fails to commence such cure within 30 day period or fails to continuously thereafter
diligently pursue the cure of such failure, the other party may pursue any remedy available at law or in
equity and any legal proceedings brought to enforce the terms of this Agreement, the prevailing party
may recover its reasonable and necessary attorney's fees from the nonprevailing party in accordance with
any means available at law or in equity.
4.3 Representations of the City. The City hereby represents and warrants that is has full
constitutional and lawful right, power and authority, under current applicable law, to execute and deliver
and perform the duties and obligations of this Agreement and all of the foregoing have been or will be
duly and validly authorized and approved by all necessary proceedings, findings and actions. Accordingly,
this Agreement constitutes the legal, valid and binding obligation of the City, enforceable in accordance
with its terms.
4.4 Representations of the Developer. Developer hereby represents and warrants that
Developer has full power to execute and deliver and perform the terms, duties, and obligations of this
Agreement and all of the foregoing has been duly and validly authorized by all necessary proceedings. This
Agreement constitutes the legal, valid and binding obligations of Developer, enforceable in accordance
with its terms.
4.5 Binding Agreement. The terms and conditions of this Agreement are binding upon the
successors and assigns of all parties hereto.
4.6 Limitation on Liability; Indemnification. It is understood and agreed by the parties that
Developer, in the development of the medical center herein referenced, and satisfying the conditions of
this Agreement, is acting independently, and the City assumes no responsibilities or liabilities to third
parties in connection with these actions or the Project. DEVELOPER AGREES TO PROTECT, DEFEND,
INDEMNIFY AND HOLD HARMLESS THE CITY, ITS ELECTED OFFICIALS, EMPLOYEES, AGENTS,
REPRESENTATIVES, AND CONTRACTORS FROM AND AGAINST ANY AND ALL CLAIMS, CAUSES OF ACTION,
LIABILITIES, DAMAGES, OR RESULTING ATTORNEY FEES ARISING FROM OR OTHERWISE RESULTING FROM
ECONOMIC DEVELOPMENT AGREEMENT — City of Lubbock/Westwind Realty, L.P. Page 3 of 5
THE ACTIVITIES UNDERTAKEN BY THE CITY AND THE DEVELOPER PURSUANT TO THIS AGREEMENT, OR
FROM THIRD PARTIES ASSERTING SAID CLAIMS OR DAMAGES IN CONNECTION WITH THE CITY'S
ACTIVITIES HEREUNDER.
4.7 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 any partnership or joint venture among the parties.
The City, its past, present and future officers, elected officials, employees and agents do not assume any
responsibilities or liabilities to any third party in connection with the development of the medical center,
or the design, construction or operation of any attendant or surrounding business commercial activities.
4.8 Assignment. Developer, its legal representatives or successors in interest shall not assign,
mortgage, pledge, encumber or otherwise transfer this Agreement or any part hereof, or the interest of
Developer under this Agreement, without obtaining the prior written consent of City, which shall not be
unreasonably withheld or delayed.
4.9 Notice. Any notice required or permitted to be delivered hereunder shall be upon receipt
sent by United States mail, postage prepaid, certified mail, return receipt requested, addressed to the
party at the address set forth below, by facsimile or by courier or other hand delivery.
If intended for the City:
Attn: City Manager
City of Lubbock
1314 Avenue K, 11th Floor
Lubbock, TX 79401
806-775-2016
806-775-2051 FAX
If intended for the Developer:
Attn: Randy Hickle
Board Chair
Westwind Realty, L.P.
2804 North Loop 289
Lubbock, TX 79415
806-741-4404
FAX
ECONOMIC DEVELOPMENT AGREEMENT — City of Lubbock/Westwind Realty, L.P. Page 4 of 5
4.10 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.
4.11 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 Lubbock County,
Texas.
4.12 Amendment. This Agreement may be amended only by the mutual written agreement of
the Parties.
4.13 Legal Construction. In the event any one or more of the provisions contained in the
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 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.
4.14 Recitals. The recitals to this Agreement are incorporated herein.
EXECUTED on this 23rd day of
CITY 01 LUBBOC
DANIEL M. POPE, MA R
ATTEST:
(0 dip't I & / C
Rebe ca Garza, City Secreta U
March 2021.
Westwind Realty, L.P.
Randy Hickle
Board Chair
ATTEST:
Name, Office
ECONOMIC DEVELOPMENT AGREEMENT— City of Lubbock/Westwind Realty, L.P. Page 5 of 5
Wausau Avenue Total OPCC
ITEM
DESCRIPTION
7QTy (+/-)
U/M
UNIT COST
I EXTENDED COST
General
1
]STORM
MOBILIZATION
11
LS
$ 20,000.00
1 $ 20,000.00
2
WATER POLLUTION PREVENTION PLAN
11
LS
$ 5,000.00
$ 5,000.00
ROADWAY
3
PREPARING OF RIGHT-OF-WAY
22.5
STA
$ 1,000.00
$ 22,500.00
4
ASPHALT REMOVAL
354.0
SY
$ 25.00
$ 8,850.00
5
24" COL TYPE A CURB AND GUTTER
3782.0
LF
$ 23.00
$ 86,986.00
6
2" HMAC COL TYPE C WITH 8" FLEXBASE AND 12"
COMPACTED SUBGRADE
12508.7
SY
$ 38.00
$ 475,329.33
7
6" CONCRETE VALLEY GUTTER AND FILLET
303.6
SY
$ 65.00
$ 19,731.11
8
6" CONCRETE ALLEY RETURNS AND DRIVEWAYS
373.3
SY
$ 65.00
$ 24,266.67
9
ADA RAMPS
8.0
EA
$ 1,500.001
$ 12,000.00
10
IMANHOLE AND VALVE BOXE ADJUSTMENTS
8.0
EA
$ 900.00
$ 7,200.00
SUBTOTAL $ 6819863.11
CONTINGENCY 10% $ 68,186.31
SUBTOTAL $ 7509049.42
ENGINEERING FEES FOR DESIGN AND FOR WEST HALF
6.0%
$ 20,455.89
TESTING AND INSPECTION FEE WEST HALF
1.5%
$ 5,113.97
ESTIMATED PROJECT TOTAL $ 775,619.29