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HomeMy WebLinkAboutResolution - 2019-R0062 - Mcdougal Land Company Master Developer Company - 02/25/2019Resolution No. 2019-R0062 Item No. 8.18 February 25, 2019 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 upon the unanimous recommendation of the Central Business District Tax Increment Reinvestment Zone Board of Directors, a Downtown Revitalization Master Developer Consultant Agreement by and between McDougal Land Company, LLC and the City of Lubbock, for the provision of Master Developer consultant services for Downtown Lubbock. Said Downtown Revitalization Master Developer Consultant Agreement is attached hereto and incorporated into 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 February 25, 2019 DANIEL M. POPE, MAYOR ATTEST: Rebe ca Garza, City Secr to APPROVED AS TO CONTENT: W. Jarr tt Atkinson, City Manager APPROVED AS TO FORM: lli Leisure, Assistant City Attorney ccdocs/ RES. Agreement — McDougal Land Company, LLC — Downtown Revitalization Master Developer Consultant Agreement February 13, 2019 Resolution No. 2019-R0062 DOWNTOWN REVITALIZATION MASTER DEVELOPER CONSULTANT AGREEMENT This Downtown Revitalization Master Developer Consultant Agreement (the "Agreement") is made by and between the City of Lubbock, a State of Texas home rule municipal corporation (the "City"), and the McDougal Land Company, L.C., an affiliate of the McDougal Companies (the "Consultant") on the recommendation of the City's Central Business District Tax Increment Reinvestment Zone Board of Directors (the "Board"), with the City and the Consultant (each a "Party," and collectively, the "Parties") acting by and through the Parties' duly authorized officers and officials, and with this Agreement becoming effective on the date of its execution by the Parties on March 1, 2019 (the "Effective Date"). RECITALS WHEREAS, on December 3, 2001, through Ordinance No. 2001-00091 the City Council of the City (the "Council") established the Central Business District Tax Increment Financing Reinvestment Zone (the "CBD TIF") and authorized the creation of the Board for the purpose of improving the value of taxable property in within the boundaries of the CBD TIF; and WHEREAS, in 2008, the Board commissioned the Downtown Revitalization Action Plan (the "Plan") which identified certain Downtown Lubbock development initiatives that the Board could implement in order to support the purpose of the CBD TIF; and WHEREAS, one of the development initiatives identified in the Plan was for the Board to engage the services of a Master Developer to be the primary point of contact for the Board and the City for any Downtown revitalization; and WHEREAS, on the recommendation of the Board, the Council engaged the Consultant to act as the Master Developer for the City and the Board to redevelop, market, and manage the redevelopment of Downtown, and the Consultant has provided such Master Developer services since January 1, 2009; and WHEREAS, on the recommendation of the Board, the City desires to continue to engage the services of the Consultant for Downtown revitalization according to the provisions of this Agreement; and NOW, THEREFORE, in consideration of the promises, mutual covenants, and agreements of the Parties hereto, the City and the Consultant do mutually agree as follows: AGREEMENT Section I — Recitals and Exhibits. The representations, covenants, and recitations set forth in the foregoing Recitals and in the attached Exhibits are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth herein. Section 2 — The Consultant's Responsibilities. A. The Consultant agrees to timely provide the services described in the Scope of Services attached to this Agreement as "Exhibit A" (the "Services"). If the Board determines that the Services are timely performed, then this Agreement may be extended and the Consultant may be engaged to perform additional services defined in the Scope of Services for the extended term of this Agreement (the "Extended Services"). Certain portions of the Services and the Extended Services may be provided by an agent for the Consultant, but the Consultant shall remain solely responsible for the full performance of all Services and Extended Services. B. As directed in "Exhibit A", the Consultant shall provide progress reports to the Board according to the procedure defined therein. Such progress reports shall be both oral and written, with the written reports being in the form substantially similar to the draft report attached to this Agreement as "ExhibitB". Section 3 — The City's Responsibilities. A. The City agrees to pay the Consultant for the Services and any Extended Services in accordance with Section 5 of this Agreement and the payment schedule attached hereto as "Exhibit C" (the "Payment Schedule"). Downtown Revitalization Master Developer Consultant Agreement (2019) Page I 1 B. The City agrees to make available certain City staff who may assist the Consultant in its performance of the Services and any Extended Services. Section 4 — Term, Termination, and Default. A. The term of this Agreement shall begin on the Effective Date and shall end on the earlier of the complete performance by the Consultant of all of the Services, or the expiration of one (1) calendar year from the Effective Date (the "Term"). B. If the Board determines through a majority vote that the Consultant has performed the Services within the Term, then the Board may extend this Agreement for an additional Three (3) calendar years (the "Extension") during which time the Consultant shall be responsible for the Extension Services defined in "Exhibit All. C. This Agreement may be terminated for convenience by the terminating Party giving one hundred twenty days (120) prior written notice of such termination to the other Party. In the event of such termination, the City shall pay the Consultant for all Services and Extension Services that have been completely performed by the Consultant prior to the termination date. D. In the event that the City determines that there has been a default under this Agreement by the Consultant, then, within ten (10) days of the determination of such default, the City shall provide written notice of such default to the Consultant. The City's written notice of default shall include the manner and timeframe within which the Consultant may cure such default. If the Consultant fails to cure the default within the manner and timeframe identified in the City's written notice of default, then this Agreement shall automatically terminate and the City shall pay the Consultant for all Services and Extension Services completely performed by the Consultant prior to the date of default and neither the City nor the Board shall have any obligation thereafter to the Consultant under this Agreement. Section 5 — Fees. A. As provided in the Payment Schedule, the City shall pay to the Consultant a sum not to exceed one hundred fifty thousand dollars ($150,000.00) for the performance of the Services during the Term (the "Term Fee"). The Term Fee shall be distributed monthly during the Term in twelve (12) equal payments of twelve thousand five hundred dollars ($12,500.00). The City's funding for the Term Fee shall be those funds specifically set aside and budgeted for the Consultant in the Board's budget. B. As provided in the Payment Schedule, the City shall pay the Consultant for the performance of the Extension Services during the Extension (the "Extension Fee") only if such Extension is granted by the Board. For the first (1st) year of the Extension, the Extension Fee shall be two percent (2%) of the growth in the certified value of taxable real property located within the CBD TIF during such Extension year. Such growth in value shall be determined by comparing the certified value of taxable real property within the CBD TIF during Tax Year 2018 with the certified value of taxable real property within the CBD TIF during Tax Year 2019. For the second (2nd) year of the Extension, the Extension Fee shall be two percent (2%) of the growth in the certified value of the taxable real property located within the CBD TIF during such Extension year. Such growth in value shall be measured by comparing the certified value of taxable real property within the CBD TIF during Tax Year 2019 with the certified value of taxable real property within the CBD TIF during Tax Year 2020. For the third (3`d) year of the Extension, the Extension Fee shall be two percent (2%) of the growth in the certified value of the taxable real property located within the CBD TIF during such Extension year. Such growth in value shall be measured by comparing the certified value of taxable real property within the CBD TIF during Tax Year 2020 with the certified value of taxable real property within the CBD TIF during Tax Year 2021.The Extension Fee for the first (1st), second (2°d), and third (3d) years of the Extension shall be distributed quarterly during the applicable year of the Extension in four (4) equal payments of one -quarter (1/4) of the Extension Fee for the applicable year of the Extension. The City's funding for the Term Fee shall be those funds specifically set aside and budgeted for the Consultant in the Board's budget. C. If the Extension Fee for the first (1 st), second (2nd), or third (3`d) year of the Extension should be three hundred fifty thousand dollars ($350,000.00) or more (the "Increased Extension Fee"), then such Increased Extension Fee shall be distributed over a two (2) year period in eight (8) equal payments of one -eighth (1/8) of such Increased Extension Fee. If this provision obligates the City to pay the Increased Extension Fee to the Downtown Revitalization Master Developer Consultant Agreement (2019) Page 12 Consultant beyond the length of the Extension, then the City's obligation to the Consultant under this Agreement shall only be related to the payment of the Increased Extension Fee contemplated in this provision, and unless otherwise indicated, no other provision of this Agreement shall be binding on the City. D. In the event that the CBD TIF does not generate an annual tax increment revenue as projected and assumed under this Agreement, then the Board, the City, and the Consultant agree to renegotiate the payment considered under this Agreement in an equitable manner. E. The City shall not be responsible for providing any funding to the Consultant beyond that funding which is identified herein. However, nothing prevents the Board from approving additional funds to be delivered to the Consultant for services performed or costs incurred by the Consultant that are necessary to the performance of this Agreement but which are not expressly described in this Agreement (the "Additional Fees"). Any Additional Fees approved by the Board shall be limited to those funds available for the Consultant in the Board's budget. In its request for any Additional Fees, the Consultant shall provide the Board with all applicable supporting documentation related to the Additional Fees and the Board shall not approve any request for Additional Fees by the Consultant without such supporting documentation. F. Nothing in this Agreement shall be construed to require the City or the Board to approve or make payments from any source of City funds other than the CBD TIF fund. The payments considered in this Section are based on the CBD TIF generating tax increment revenue as projected in the current CBD TIF Finance Plan. Section 6 — Insurance. The Consultant agrees to obtain, and to cause all of its agents to obtain, comprehensive liability insurance satisfactory to the City, including workers' compensation or a self-insurance plan in lieu thereof, which names the City and the Board as additional insureds, due to any damage, injury, or death attributed to the Consultant or its agents while performing the Services or Extension Services contemplated under this Agreement. Section 7 — Indemnity. A. TO THE EXTENT ALLOWED UNDER LAW, THE CONSULTANT SHALL INDEMNIFY AND HOLD HARMLESS, TO THE FULLEST EXTENT PERMITTED BY LAW, THE CITY, THE BOARD, AND THE CITY'S RESPECTIVE OFFICERS, EMPLOYEES, ELECTED OFFICIALS, AND AGENTS (COLLECTIVELY, THE "INDEMNITEES"), FROM AND AGAINST ANY AND ALL LOSSES, DAMAGES, CLAIMS, OR LIABILITIES, OF ANY KIND OR NATURE, WHICH ARISE DIRECTLY OR INDIRECTLY FROM, OR ARE RELATED TO, IN ANY WAY, MANNER, OR FORM TO, THE SERVICES CONTEMPLATED IN THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, LOSSES, DAMAGES, CLAIMS, OR LIABILITIES ARISING FROM, OR RELATED TO, IN ANY WAY, MANNER, OR FORM, THE ACT OR OMISSION OF THIRD PARTIES. THE CONSULTANT FURTHER COVENANTS AND AGREES TO DEFEND ANY SUITS OR ADMINISTRATIVE PROCEEDINGS BROUGHT AGAINST THE INDEMNITEES ON ACCOUNT OF ANY SUCH CLAIM, AND TO PAY OR RELEASE THE FULL AMOUNT OR OBLIGATION OF ANY SUCH CLAIM INCURRED BY, ACCRUING TO, OR IMPOSED ON THE INDEMNITEES, AS APPLICABLE, RESULTING FROM ANY SUCH SUITS, CLAIMS, OR ADMINISTRATIVE PROCEEDINGS. IN ADDITION, THE CONSULTANT SHALL PAY TO THE INDEMNITEES, AS APPLICABLE, ALL ATTORNEY'S FEES INCURRED BY SUCH PARTIES IN ENFORCING THE CONSULTANT'S INDEMNITY IN THIS SECTION. B. TO THE EXTENT ALLOWED UNDER LAW, THE INDEMNITEES SHALL NOT BE LIABLE FOR, FROM, OR AGAINST, AND THE CONSULTANT HEREBY RELEASES THE INDEMNITEES FOR, FROM, AND AGAINST, ANY LOSSES, DAMAGES, CLAIMS, OR LIABILITIES TO THE CONSULTANT, ON ANY THEORY OF LEGAL LIABILITY, INCLUDING, BUT NOT LIMITED TO, THE NEGLIGENCE, OF ANY TYPE OF DEGREE OR FAULT, OF THE INDEMNITEES ARISING FROM, OR RELATED TO, IN ANY WAY, MANNER, OR FORM, THE UNENFORCEABILITY OR VOIDANCE, FOR ANY REASON, OF ALL OR ANY PORTION OF, THIS AGREEMENT. C. THE INDEMNITY AND RELEASE PROVIDED HEREIN SHALL SURVIVE THE TERMINATION OR VOIDANCE OF THIS AGREEMENT. D. THE PARTIES EXPRESSLY ACKNOWLEDGE THAT THE CITY'S AUTHORITY TO INDEMNIFY AND HOLD HARMLESS ANY THIRD PARTY IS GOVERNED BY ARTICLE XI, SECTION 7 OF THE TEXAS CONSTITUTION AND ANY PROVISION WHICH PURPORTS TO REQUIRE INDEMNIFICATION BY THE CITY IS INVALID. Downtown Revitalization Master Developer Consultant Agreement (2019) Page 13 Section 8 — Authority to Bind. Each Party represents and warrants that it has full constitutional and lawful right, power, and authority, under currently applicable law, to execute, deliver, and perform the terms and obligations of this Agreement. Accordingly, this Agreement constitutes the legal valid and binding obligation of the Parties, is enforceable in accordance with its terms and provisions, and does not require the consent of any other entity. Section 9 — Notices. Any notice required by this Agreement shall be deemed to be properly served if deposited in the U.S. mail by certified letter, return receipt requested, addressed to the recipient at the recipient's address shown below, subject to the right of either Party to designate a different address by notice given in the manner just described. For City: City Manager City of Lubbock P.O. Box 2000 1625 13' Street Lubbock, Texas 79457 Section 10 — Venue and Applicable Law. For Consultant: Mr. Marc McDougal McDougal Land Company, L.C. 5001 W Loop 289 Lubbock, Texas 79414 This Agreement is subject to all present and future valid laws, orders, rules, ordinances, and regulations of the United States of America, the State of Texas, the Parties, and any other regulatory body having jurisdiction over this Agreement. This Agreement shall be construed and governed according to the laws of the State of Texas. The sole venue for any action, controversy, dispute, or claim arising under this Agreement shall be in a court of appropriate jurisdiction in Lubbock County, Texas exclusively. Section 11— Rights and Remedies Reserved. The City reserves the right to exercise any right or remedy available to it by law, contract, equity, or otherwise, including without limitation, the right to seek any and all forms of relief in a court of competent jurisdiction. Further, the City shall not be subject to any arbitration process prior to exercising its unrestricted right to seek judicial remedy. The remedies set forth herein are cumulative and not exclusive, and may be exercised concurrently. To the extent of any conflict between this provision and another provision in, or related to, this Agreement, the former shall control. Section 12 — Attorney's Fees. The Parties expressly agree that in the event of any litigation arising between the Parties that each Party shall be solely responsible for payment of its own attorneys and that neither Party shall be responsible for the other Parry's attorney fees, regardless of the outcome of the litigation. Section 13 — Legal Construction. In the event that 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 any other provision thereof and this Agreement shall be construed as if the invalid, illegal, or unenforceable provision had never been contained in this Agreement. Section 14 — Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. Section 15 — Successors and Assigns. The terms and conditions of this Agreement are binding on the successors and assigns of the Parties. Provided, however, this Agreement shall not be assigned by the Consultant without prior Board approval, with such approval not being unreasonably withheld. Downtown Revitalization blaster Developer Consultant Agreement (2019) Page 14 Section 16 — Entire Agreement. This Agreement embodies the complete agreement of the Parties, suspending all oral or written previous and contemporary agreements between the Parties relating to the matters contemplated in this Agreement, and except as otherwise provided herein cannot be modified without written agreement of the Parties to be attached to and made a part of this Agreement. Section 17 —Public Information. This Agreement is public information. To the extent, if any, that any provision of this Agreement is in conflict with Tex. Gov't. Code Ann. Chapter 552 et seq., as amended the same shall be of no force and effect. Section 18 — No Third -Party Beneficiaries. This Agreement is entered solely by and between, and may be enforced only by and among, the Parties. Except as set forth above, this Agreement shall not be deemed to create any rights in or obligations to any third parties. Section 19 — No Personal Liability. Nothing in this Agreement is construed as creating any personal liability on the part of any employee, officer, or agent of the City, the Board, or any other public entity that might be affected by this Agreement. Section 20 — No Joint Enterprise This Agreement is not intended to, and shall not be construed in any way to, create any joint enterprise between or among the Parties. Section 21— Sovereign Immunity Acknowledged and Retained THE PARTIES EXPRESSLY ACKNOWLEDGE AND AGREE THAT NO PROVISION OF THIS AGREEMENT IS IN ANY WAY INTENDED TO CONSTITUTE A WAIVER BY EITHER PARTY OF ANY IMMUNITIES FROM SUIT OR LIABILITY THAT EITHER PARTY MIGHT HAVE BY OPERATION OF LAW. THE CITY RETAINS ALL OF ITS GOVERNMENTAL IMMUNITIES. SIGNATURES This Agreement is executed by the Parties on February 25 , 2019. FOR: The City of Lubbock DANIEL M. POPE, MAYOR ATTEST: Aoolotz�e ))C e ca Garza, City Secre ry FOR: The McDougal Land Company, LC s AMC MCDOUGAL, MANAGER Downtown Revitalization Master Developer Consultant Agreement (2019) Page 15 APPROVED AS TO CONTENT: W. arrett A inson, City Manager APPROVED AS TO FORM: (&MZWL ilelli Leisure, Assistant City Attorney Downtown Revitalization Master Developer Consultant Agreement (2019) Page 16 Exhibit A: SCOPE OF SERVICES The Agreement contemplates two (2) performance periods within which the Consultant will be expected to timely perform certain services described in this Exhibit A. The first (I") performance period (the "Term") runs one (1) calendar year from the Effective Date of the Agreement. The services associated with the Term (the "Services") are listed below. If the Board determines through a majority vote that the Consultant has completely performed the Services within the Term, then the Board may approve the extension of this Agreement and allow a second (2n1) performance period that will run three (3) calendar years beginning at the end of the Term (the "Extension"). The services associated with the Extension (the "Extension Services") are listed below. For the Services and the Extension Services, the Consultant will be responsible for following the reporting schedule outlined below. The Services (to he completed within the Term) Master Developer Services: Provide for the Board all developer consultant services related to the "Master Developer" role for Downtown, including, but not limited to: a. working with Texas Tech and other institutions of higher education to maximize and increase the student population Downtown; b. promoting available Downtown properties with local, state, and national developers; c. securing development partners as necessary for Downtown residential, office, retail, and commercial development initiatives, including entertainment venues and restaurants; d. acquiring land and structures for redevelopment or demolition that the Board deems appropriate in order to promote the purposes of the Board's Project and Financing Plans, with the Board providing all costs associated with survey, appraisal, legal, property acquisition, and other costs; e. assisting developers interested in renovations of existing Downtown buildings, including advising property owners in resolving environmental issues, utility issues, and other City issues for developable Downtown property; f. providing consultant services as necessary to the City's staff, g. encouraging the increase in, and diversification of, Downtown housing stock to include senior housing, empty nesters, and multi -family housing (e.g. high -density housing, lofts, condominiums, and student housing); h. working with LEDA, Market Lubbock, Inc., the Chamber of Commerce, and similar entities to: (i.) encourage retail businesses offering unique and experience -based shopping concepts and ambiance to locate in Downtown; and, (ii.) support their marketing efforts for business recruitment, tourism, and community relations in order to attract local, regional, and national events to Downtown; i. assisting stakeholders to pursue opportunities for artists' live/work studio spaces within the Downtown Arts and Cultural District; j. working with City Planning staff to create an artist -in -residence program for Downtown; k. working to attract "Class A" office space for corporate headquarters and white-collar enterprise companies; 1. working with the Board to update the City's Downtown website and to provide information for submitting articles in local and regional media outlets; and in. encouraging office and retail development in a mixed -use capacity. Downtown PID: Establish a Downtown Public Improvement District (the "PID") by the end of the Term. The Consultant will be the responsible party to create all statutorily required documents related to the PID (the Petition, the Service and Assessment Plan, etc.). The Consultant will also be responsible for organizing and leading all meetings necessary to garner sufficient Downtown property owner support of the PID so that the Council will be presented with a Petition that satisfies the requirements of Chapter 372 of the Texas Local Government Code. If any additional material is reasonably necessary to be created in order to promote the PID, then the Consultant will be responsible for such material. Downtown Revitalization Master Developer Consultant Agreement (2019) Page 17 Downtown Master Plan: By the end of the Term, and at the Board's expense, the Consultant will be required to present to the Board a Master Plan for Downtown Lubbock that will be created by a nationally recognized planning, architecture, or economic development firm. At a minimum, the Master Plan should include the following items: 1. An infrastructure inventory and map that identifies all public and private utilities and utility infrastructure that is or will be located above and below ground in Downtown. 2. A parks and greenspace plan and map that indicates where urban parks and greenspace should be located Downtown, and a timeline for installation for those parks and greenspaces. This greenspace plan should address the design standards that should be applied to the public right-of-way (streets, sidewalks, and all related public areas) throughout Downtown. 3. A parking plan for Downtown that identifies all current public and private parking in Downtown and lays out a plan and map that identifies how Downtown parking will be addressed within five (5) years. 4. A reassessment of the 2008 Downtown Revitalization Plan's implementation plan for the suggested development projects highlighted in that Plan. Since several of the projects highlighted in the 2008 Plan have been completed or initiated, the 2019 Master Plan should provide suggestions for additional catalytic projects for Downtown and an implementation plan for both the 2008 and 2019 projects. 5. The 2019 Master Plan should address all documents, plans, studies, ordinances, codes, and all related material that relates to development Downtown. Such material includes the City's 2040 Comprehensive Plan, the City's Code of Ordinances, the 1999 Design Standards for the Central Business District, the Downtown Public Improvement Design Standards, the study provided to the City through the AIA's Sustainability Design Assessment Team, the Imagine Lubbock plan, any Tax Increment Financing and Public Improvement District requirements related to Downtown, and other traffic, engineering, parks, arts district, and similar studies that relate to Downtown. The Extension Services (to be completed within the Extension) If the Board finds that the Consultant has completed the Services within the Term, then the Board may extend the Agreement for three (3) years, during which time, the Consultant shall complete the following: Master Developer Services: The Consultant shall continue to provide lead development consultant services for the Board in the same manner as it provided during the Term. However, within ten (10) days of the Board granting an Extension to this Agreement, the Board shall create a timeline for the provision of the Extension Services that is guided by the Downtown Master Plan, identifies Downtown development benchmarks, and prioritizes tasks to be accomplished by the Consultant through the Extension Services. If the Downtown Master Plan calls for development initiatives not included in the Services, then the Extension Services shall augment the Master Developer Services with the new development initiatives. If the Downtown Master Plan calls for the elimination of some of the Master Developer Services, then the Extension Services should be adjusted accordingly. Reporting (to be provided durins the Term and the Extension) The Consultant will be required to present to the Board at its regular meetings a detailed accounting of the time and activity spent by the Consultant towards satisfying the Services during the Term and the Extension Services during the Extension, if such Extension is granted by the Board. Additionally, the Consultant shall be required to submit a written report of such activity, with the form of such written report being the same as or substantially similar to the Services Progress Reporting Form that is attached to the Agreement as "Exhibit B". In the case where the required reporting might affect the confidentiality of any party to a potential development project, the Board may use its Executive Session authority to allow the Consultant to provide confidential updates to the Board. Downtown Revitalization Master Developer Consultant Agreement (2019) Page 18 Exhibit B: SERVICES PROGRESS REPORTING FORM Downtown Revitalization Master Developer Consultant Agreement (2019) Page 19 CBD TIF Master Developer Agreement Deliverables Progress Reporting Form Reporting Period: Master Developer Services Description: Include reference(s) from the "Master Developer Services" list (items a-m) in Exhibit A of the Agreement. (Ex. Met with Texas Tech on potential downtown housing project. Downtown PID (Ex Met with property owner "x" to discuss petition. Downtown Master Plan Deliverables a,b,g, and 1. Date: 91151181 Time: 1-5 hrs) Date: 101161181 Time: 0.5 hrs) Downtown Revitalization Master Developer Consultant Agreement (2019) Page 110 Exhibit C: PAYMENT SCHEDULE Term Fee (Year One) Unless otherwise directed by the Parties, on the first (1st) business day following a month of performance under the Agreement, the City shall issue a payment of twelve thousand five hundred dollars ($12,500) to the Consultant according to the following schedule: April 1, 2019 May 1, 2019 June 3, 2019 July 1, 2019 August 1, 2019 September 2, 2019 October 1, 2019 November 1, 2019 December 2, 2019 January 1, 2020 February 3, 2020 March 2, 2020 Extension Fee (Years Two throueh Four) The City shall pay the Consultant for the performance of the Extension Services during the Extension (the "Extension Fee") only if such Extension is granted by the Board. For the first (0) year of the Extension, the Extension Fee shall be two percent (2%) of the growth in the certified value of taxable real property located within the CBD TIF during such Extension year. Such growth in value shall be determined by comparing the certified value of taxable real property within the CBD TIF during Tax Year 2018 with the certified value of taxable real property within the CBD TIF during Tax Year 2019. For the second (2°d) year of the Extension, the Extension Fee shall be two percent (2%) of the growth in the certified value of the taxable real property located within the CBD TIF during such Extension year. Such growth in value shall be measured by comparing the certified value of taxable real property within the CBD TIF during Tax Year 2019 with the certified value of taxable real property within the CBD TIF during Tax Year 2020. For the third (3rd) year of the Extension, the Extension Fee shall be two percent (2%) of the growth in the certified value of the taxable real property located within the CBD TIF during such Extension year. Such growth in value shall be measured by comparing the certified value of taxable real property within the CBD TIF during Tax Year 2020 with the certified value of taxable real property within the CBD TIF during Tax Year 2021.The Extension Fee for the first (1st), second (2°d), and third (3`d) years of the Extension shall be distributed quarterly during the applicable year of the Extension in four (4) equal payments of one -quarter (1/4) of the Extension Fee for the applicable year of the Extension. The City's funding for the Term Fee shall be those funds specifically set aside and budgeted for the Consultant in the Board's budget. If the Extension Fee for the first (1st), second (2" d), or third (3`d) year of the Extension should be three hundred fifty thousand dollars ($350,000.00) or more (the "Increased Extension Fee"), then such Increased Extension Fee shall be distributed over a two (2) year period in eight (8) equal payments of one -eighth (1/8) of such Increased Extension Fee. If this provision obligates the City to pay the Increased Extension Fee to the Consultant beyond the length of the Extension, then the City's obligation to the Consultant under this Agreement shall only be related to the payment of the Increased Extension Fee contemplated in this provision, and unless otherwise indicated, no other provision of this Agreement shall be binding on the City. Downtown Revitalization Master Developer Consultant Agreement (2019) Page 111