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HomeMy WebLinkAboutResolution - 2002-R0077 - Interlocal Agreement - Lubbock Reese Redevelopment Authority - 02_28_2002Resolution No. 2002—R0077 February 28, 2002 Item No. 30 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the City Council of the City of Lubbock hereby authorizes for and on behalf of the City of Lubbock the assignment by Lubbock Reese Redevelopment Authority of the funds associated with and for the purpose of conducting marketing activities in the Interlocal Agreement dated September 24, 1998, by and between the City of Lubbock and Lubbock Reese Redevelopment Authority to Market Lubbock Economic Development Corporation. Said Assignment is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 28th day of February , 2002. WINDY SITTO14, MAYOR ATTEST: Garza, City APPROVED AS TO CONTENT: FU541:11,11YESE-ml. Deputy City Manager APPROVED AS TO FORM: C-AmY' Sxifis � -'"� r Assista#t � ttorney ALS:cp L:\CityattWmy\LRRA.res & ccdocs February 5, 2002 Resolution No. 2002—R0077 MULLIN HOARD BROWN LANGSTON CARR HUNT & JOY, L.L.P. DAVID MULLIN 'miThkNE-YS AT LAW STEJOHN M. L.B HOAROWN WELLS F_'�RGO CENTER JOHN M. BROWN DAVID R LANGSTON 1500 BROADWAY, SUITE 700 DONALD M. HUNT LUBBOCK, TEXAS 79401 JEFFREY E. RITTER 765-7491 DON D. SUNDERLAND (806) JOHN S. IRWIN FAX (806) 765-0553 LATRELLE BRIGHT JOV CHARLES R. WATSON, JR. JONATHAN S. MILLER MAILING ADDRESS: JOHNNY K. MERRITT P. O. BOX 2585 JOEL R. HOGUE LUBBOCK, TEXAS 79408-2585 JOHN G. TURNER III VINCENT E. NOWAK ROBERT R. BELL W.mullinhoard.com www.mullinhoard.com T. KEVIN NELSON MICHAEL D. HICKS WOLFPUCKETT January 29, 2002 Eric Williams Executive Director Lubbock Reese Redevelopment Authority P.O. Box 586 Reese AFB, Texas 79489 RE: Marketing Agreement between MLI and LRRA Dear Eric: SPECIAL COUNSEL WARLICK CARR JOHN MOZOLA, P.C. JIMMY ROSS LISA L. HAUGE MARK S. LOGSDON DAVID A.KELLY,JR. GUY COOKSEY J. DREW HOUGHTON• CLINT R. LATHAM LAWRENCE M. DOSS MICHAEL P. SPRINGER JANA G. CLIFF MICHAEL B. FRANKLIN "Licensed in Oklahoma only Enclosed please find three originals of the Marketing Agreement the Board approved at the last meeting. The requested changes, a required accounting of how the funds are spent and the return of unearned funds to LRRA if the contract is terminated, have been made. Please attach the necessary exhibits behind each exhibit cover page and then ask Delbert to execute these on behalf of LRRA. Upon execution please return them to me so that I can forward them to Market Lubbock for execution. Please call if you have any questions. Thank you for the opportunity to assist LRRA with this matter. MPS/dag Enclosures - as stated Amarillo Office: Amarillo National Plaza/Two 500 South Taylor, Suite 800 Amarillo, Texas 79101 (806)372-5050 Fax (806) 372-5086 RECEIVED JAN 3 0 2002 W:\WEST\Home\\VPDocs\6000\LetterslWilliarns013002.wpd Resolution No. 2002-R0077 February 28, 2002 Item No. 30 MARKETING AGREEMENT BETWEEN LUBBOCK REESE REDEVELOPMENT AUTHORITY AND MARKET LUBBOCK, INC. This Marketing Agreement ("Agreement") is made and entered into this date, by and between the Lubbock Reese Redevelopment Authority, a political subdivision of the State of Texas ("LRRA") and Market Lubbock, Inc., a Texas non-profit corporation ("MLI"). Recitals I. 1. LRRA is a political subdivision of the State of Texas formed for the purpose of developing and maintaining the former Reese Air Force Base located in Lubbock County, Texas. 2. LRRA is developing the former air base as a technology and research park known as the Reese Technology Center ("Reese Center"), and is responsible for administering the real and personal property within its boundaries which are more fully described in the Texas Local Government Code § 396.009 (the "Property"). 3. MLI is a Texas non-profit corporation organized by the City of Lubbock for the public purposes of development and diversification of the economy of the state, the elimination of unemployment or underemployment, the stimulation of agriculture innovation, the fostering of the growth of enterprises based upon agriculture, or the development or expansion of transportation or commerce in the State of Texas. This Agreement is executed as a part of the Economic Development Program of the City of Lubbock 4. In order to attract and maintain sophisticated and technologically innovative companies, LRRA has determined that it is in its best interest to enter into a Marketing Agreement with MLI in order to facilitate the leasing and/or sale of the Property at Reese Center. 5. The United States of America has either leased or conveyed certain parcels of the Property at Reese Center to LRRA, pursuant to a Lease in Furtherance of Conveyance ("LIFC") or the provisions of a No -Cost Economic Development Conveyance Agreement ("EDC"). 6. LRRA serves as the Local Reuse Authority under applicable federal Base Realignment and Base Closure Statutes ('BRAG'). 7. MLI is willing to enter into this Agreement on the terms and considerations set forth herein. NOW, THEREFORE, in consideration of the mutual consideration and promises more fully described herein, the parties do hereby agree as follows: 1. MLI agrees to assume all marketing and promotion activities related to the use and redevelopment of Reese Center in order to facilitate the leasing and/or sale of the Property. -1- In this regard, LRRA will provide MLI with a listing portfolio ("Listing Portfolio") of buildings available for lease as well as a description of all land and other facilities available for lease or sale at Reese Center. Such listing portfolio will include floor plans, statistical information, condition assessments of existing facilities, and applicable pricing and common area maintenance ("CAM)" fees related to the various properties contained in the listing, and a summary of available funds for new construction and modification or renovation of existing facilities. This Listing Portfolio is being delivered by LRRA to MLI simultaneously with the execution of this Agreement. In this regard, the following inventory of information is attached hereto and incorporated herein for all purposes: ♦ Exhibit "A" - Inventory of Buildings and Facilities; ♦ Exhibit "B" - Schedule of Common Area Maintenance fees; ♦ Exhibit "C" - Summary of Available funds for new construction and renovation and improvement of existing facilities; and ♦ Exhibit "D"- Condition assessment reports relating to buildings and facilities. If there are any changes in the Listing Portfolio or any of the Exhibits A-D, LRRA will, provide changed Exhibits or a changed Listing Portfolio within thirty (30) days of any such change. 2. As a part of the consideration for this Agreement, MLI shall receive all future monies received or to be received by LRRA or to which LRRA may be entitled to receive from and after the date of this Agreement, which are to be_ used solely for the purposes of the promotion of the Property for the purposes of sales, leases, or joint ventures of all or any portion of the Property. 3. The initial contract term of this Agreement begins on January 1, 2002, and continues at will until it is terminated by either party. This Agreement may be terminated by either party with thirty (30) days written notice of its intent to terminate the Agreement. Upon any such termination, any monies received by MLI not yet earned for services rendered by MLI under the terms of this Agreement will be refunded or paid to LRRA and an appropriate accounting given for such funds. 4. MLI will use its best, good faith efforts to solicit and secure satisfactory tenants and other end users for sale of the Property, or for ground or build -to -suit leases, or joint ventures of all or a portion of the Property. MLI will focus its efforts to promote Reese Center for research and development uses focusing on new technologies or for the purpose of advancing existing technologies. Potential manufacturing prospects will be those involved in telecommunications, biotechnology, food technology, medical device development and manufacturing, electronics and semiconductors manufacturers, pharmaceuticals, environmental engineering, software development, and other such science and technology applications. Any distribution prospects will be reviewed on a case -by -case basis but will generally be discouraged. -2- Existing manufacturing and distribution prospects already located and established in the Lubbock area will be discouraged from relocating to Reese Center if the relocation would lead to a significant loss of existing tax base to surrounding governmental entities, or in the event it is determined that such relocation is an attempt to avoid ad valorem or personal property taxes charged by other political subdivisions. 5. MLI will identify and actively recruit what MLI identifies as qualified prospects ("Qualified Prospects") for the Property. Based solely upon the information provided in Exhibits A-D of this Agreement, MLI may make proposals to Qualified Prospects for sales or leases of the Property. MLI will provide copies of such proposals to LRRA; provided, however, that as long as the terms of any proposal are consistent with those terms set forth in Exhibits A-D of this Agreement, no prior approval of LRRA shall be required for such proposals. MLI will submit all Qualified Prospects and proposals made to any Qualified Prospect to LRRA. MLI shall act as a facilitator for all transactions involving sales or leases of the Property, all ground or build -to -suit lease, and all joint ventures of all or any portion of the Property. MLI agrees in such matters to act in the best interest of LRRA, with actual negotiations of terms and conditions to be directed by management of LRRA, subject to final review and approval by the Board of Directors of LRRA, which final approval will not be unreasonably withheld, provided the terms and conditions of any proposal are substantially as set forth in Exhibits A-D of this Agreement. 6. MLI will use its best, good faith efforts to achieve the goals of this Agreement. However, LRRA acknowledges that MLI has been organized by the City of Lubbock and has as its mission to promote economic development in the region. As such, MLI must promote the entire Lubbock region for economic and industrial development, including manufacturing, distribution, regional/national services, regional/national headquarters locations, and other office/industrial users. MLI shall make every effort to promote Reese Center to a prospect which fits the described tenant or end user criteria contained in this Agreement, but LRRA must recognize that each prospect makes its own ultimate decision on site location and MLI will present all available options within the Lubbock region to the prospects MLI contacts or solicits. 7. LRRA currently has an Interlocal Agreement with the City of Lubbock for the City to provide it with marketing funds for use in promoting the redevelopment of Reese Center during fiscal years ending September 30, 2002 and September 30, 2003. LRRA agrees that it will transfer and assign to MLI all of its rights to receive such marketing funds from the City of Lubbock for these fiscal years under the current Interlocal Agreement with the City. However, it is specifically agreed that no funds from the City currently in the possession of LRRA will be transferred to MLI. Rather, such funds now in possession of LRRA will be retained and used in the development of Reese Center as deemed necessary by LRRA Board. 8. MLI agrees that it will use the marketing funds received pursuant to the Interlocal Agreement with the City of Lubbock exclusively for promotion of the lease and/or sale of the Property at Reese Center. MLI's marketing efforts shall include, but not be limited to, the scope of services described in Exhibit "E" of this Agreement, which is attached hereto and incorporated herein for all purposes. Additional activities shall include the production and distribution of appropriate advertisements in applicable industry and trade publications, regional and national -3- newspapers and magazines, and appropriate electronic media outlets. Upon termination of this Agreement, all promotional materials produced or generated by MLI relating to Reese Center will become the property of LRRA. During the term of this Agreement, MLI will also be responsible for maintaining the web page of LRRA, keeping the information current and keeping such web page active on the world wide web. Further, MLI may send representatives to appropriate economic development or industry trade shows. All advertisements and promotional materials require the prior approval of the Board of LRRA before proceeding, and such approval is at the sole discretion of LRRA Board, provided, however, that such approval will not be unreasonably withheld by LRRA. 9. During the term of this Agreement, MLI's main point of contact with LRRA Board of Directors will be the Chief Executive Officer for MLI. The Chief Executive Officer of MLI will be responsible for the development of all marketing and promotion activity related to Reese Center and for all personnel matters relating to such marketing. 10. The Chief Executive Officer of MLI, or his designated representative, shall report on all marketing and promotion activities related to this Agreement on at least a quarterly basis to LRRA Board of Directors. MLI will be given a copy of such report and will be allowed to have a representative present for the presentation of such report to LRRA Board of Directors. This report will include an accounting for all monies spent by MLI, pursuant to this Agreement. This accounting to be included in this activity report shall be prepared by MLI and need not be prepared by nor audited by independent or outside accountants. MLI will keep a listing of all contacts with prospects and will maintain a tracking system which identifies the name of the prospect, the person at the prospect responsible for negotiations of any lease or purchase, the MLI employee responsible for such prospect, the status of negotiations and discussions, the date of the most recent status change and the next action proposed to be taken. The parties acknowledge the confidential nature of such information and the fact that MLI is subject to the provisions of the Texas Open Records Act. While MLI will use its best efforts to maintain the confidentiality of such information, the parties recognize that MLI is subject to foregoing Act. 11. Currently, LRRA has in existence various lease, conveyance, or license agreements with the Air Force Base Conversion Agency ("AFBCA") which are consistent with federal BRAC statutes and regulations. These agreements provide that all tenants of LRRA property must have casualty and liability insurance coverage with both LRRA and AFBCA named as co -insureds. Furthermore, such agreements have specific requirements relating to excavation work performed anywhere on the property and require both LRRA and any tenant or other end user to obtain specific AFBCA approval to undertake any excavation or construction activities. MLI acknowledges that it has been advised of the existence of these type of agreements with the federal government as well as the existence of federal statutes and regulations which govern the reuse of BRAC facilities. MLI agrees that in any negotiations with prospective tenants or end users that it will advise them of the need to comply with and abide by terms of the existing AFBCA agreements and all applicable federal BRAC regulations and statutes. Both LRRA and MLI recognize that Reese Center contains areas affected by contaminated or hazardous substances which are currently the subject of remediation activities of the United States Department of Defense. A map of these areas is attached hereto as Exhibit "F" -4- and is incorporated herein for all purposes. MLI acknowledges that it has been advised by LRRA of the existence of these environmental concerns. While LRRA currently maintains environmental insurance coverage, neither LRRA nor MLI can provide assurances to any prospective tenant or end user on the impact of the existence of these contaminated areas nor warrant the extent of the coverage or effectiveness of the environmental insurance. Therefore, MLI agrees to inform all prospects of the existence of environmentally contaminated areas which are the subject of remediation activities. 12. If either party institutes legal action to enforce its rights under this Agreement, the prevailing party will be entitled to recover its reasonable attorneys' fees and other costs of suit incurred as a result of such action. 13. All building, ground and build -to -suit leases, or other such conveyance documents, and all modifications and extensions thereof, shall be prepared and approved and executed by LRRA. All preparation, approval and execution of such conveyance documents shall be in the sole discretion of LRRA and subject to the approval of its Board in all instances. 14. MLI will not be responsible for matters of a legal nature, including environmental matters, and will not be providing legal representation to or on behalf of LRRA regarding documentation and negotiation of leases or conveyance documents or environmental matters. LRRA agrees to engage such attorneys as are required in connection with any such documentation, negotiations and environmental matters. The choice to retain an attorney and the selection of that attorney shall be within the exclusive control of LRRA. 15. MLI agrees that it shall not assign any interest in this Agreement and shall not transfer any interest in the same, without the prior written consent of LRRA, which such consent by the Board of LRRA may be withheld, conditioned or denied in its sole discretion. 16. This Agreement is binding upon the parties hereto and their respective successors, successors in trust, and assigns. 17. This Agreement constitutes the entire agreement between LRRA and MLI and supercedes all prior discussions and agreements, if any. Any modifications or supplements to this Agreement will only be binding upon the parties if memorialized in writing, approved by their respective Board of Directors and executed by an authorized official of both LRRA and MLI. All provisions of this Agreement will be interpreted in accordance with the laws of the State of Texas. Furthermore, any liability that may arise as a consequence of the execution of this Agreement, or any activities undertaken pursuant to such Agreement, shall be the responsibility of LRRA or MLI, and shall not be the personal responsibility of any board member, officer or director of either LRRA or MLI, or any employee of LRRA or MLI. 18. Except as otherwise provided in this Agreement, all notices or other communications to either party as may be required by this Agreement shall be deemed given when made in writing and when delivered, or deposited in the United States Postal Service to the following individuals: -5- For LRRA: Eric Williams Executive Director Lubbock Reese Redevelopment Authority 9801 Reese Blvd., Suite 200 Lubbock, Texas 79416 (806) 885-3597 (806) 885-6003 facsimile For MLI: David Sharp Chief Executive Officer Market Lubbock.Inc. 1301 Broadway, Suite 200 Lubbock, Texas 79401 (806) 749-4500 (806) 749-4501 facsimile Entered into and agreed to this 28th day of February , 2002, to be effective January 1, 2002, as evidenced by the signatures of the authorized representatives below whose authority has been delegated to each by resolutions duly passed and approved by their respective Board of Directors. LUBBOCK REESE REDEVELOPMENT AUTHORITY By U,14Z� Delbert McDouga , President MARKET LUBBOCKINC. By_ Mike Field, Pr6siddnt Attachments: Exhibit "A" - Inventory of Buildings and Facilities Exhibit "B" - Schedule of Common Area Maintenance Fees Exhibit "C" - Schedule of Available Funds Exhibit "D" - Condition Assessment Reports Exhibit "E" - Scope of Services Exhibit "F" - Map of Areas Affected -6- Resolution No. 2002-R0077 EXHIBIT "A" INVENTORY OF BUILDINTGS AND FACILITIES EXHIBrr "A" Resolution No. 2002—R0077 Reese Technology Center A Master -Planned Research & Business Park EXECUTIVE SPACE SUMMARY 1/28/2002 TEXAS TECH (17 BLOGS) - PUBLIC BENEFIT TRANSFER - 151 LEASE - 2 SOUTH PLAINS COLLEGE - ALL PUBLIC BENEFIT TRANSFER - 6 E 105 Building #5 25,642 820 Building #3 26,701 900 Building #1 15,396 920 Building #2 31,600 955 Building #4 4,278 1160 Building #6 17,760 NNIFNINWE't 1 -1 m WWO 0 via W, a 5mm W, � ADVANCED DNA TECHNOLOGIES - LEASE - 1 12381 Lab Offices 6,4721 tf , ,, m 1, SUPERIOR MARKETING - LEASE - I ................... Page 1 of 5 76 LPD Academy 24,324 3109 Storage 545 3110 Storage 150 b _ e S.P.A.G. - LAW ENFORCEMENT DIVISION - LEASE -1 E i <r Q 5001 Law Enforcement Classrooms 7,323 Lease (2,453) s s � x GTE (PHONE) - LEASE -1 20 GTE 6,644 LRRA-LEASE-3 50 LRRA Shop 7,600 Maintenance 74 Lubbock Fire Dept / SPEMS 15,663 Right of Entry 800 LRRA Administration / AFBCA 25,497 Administration (8,000 sf - 1 st Floor Available) mwmx��'� x � ASLAN- LEASE -2 61 Manufacturing Plant 10,928 70 Storage / Offices 5,8051 Partial — Offices Only PNB (BANK) - LEASE -1 440 Bank 1,998 Page 2 of 5 SUPACHILL- LEASE -2 S.P A G - PUBLIC BENEFIT TRANSFER - 2 - FIRING RANGE (WEST OF AIRFIELD] m _... A. ft A 3100 Storage 1,000 Public Benefit Transfer 3104 Storage 1,828 Public Benefit Transfer PIMNY DESIGN LEASING / BROKERS - LRRA PROPERTY - 5 BLDGS RIGHT OF ENTRY - 1 YEAR e 89 Storage 6,951 Short Term Right of Entry 92 Hangar 24,080 Short Term Right of Entry 96 Storage 2,296 Short Term Right of Entry 102 Storage 5,898 Short Term Right of Entry 1111 lOffices 2,411 Short Term Right of Entry AVAILABLE FOR LEASE - 2002 - 31 BLDGS. 7 Workshop 3,032 11 Offices 4,156 15 Offices 10,376 36 Offices / Computer Area 8,507 51 Storage Warehouse 6,750 52 Storage Warehouse 70,726 59 Storage Warehouse 26,187 60 Hangar 6,750 70 Hangar 20,000 79 Special Events Offices 6,947 82 Hangar 55,318 89 Storage 6,951 92 Hangar / Storage 24,080 123 Special Events / Theater 9,507 Seats 250 210 LPD / Special Events - Gym 22,660 220 4th Corp / Dorms 28,788 Use for Reserve Training 230 Offices / Labs 23,912 310 Office / Classrooms 12,701 315 Restaurant or Offices 14,080 340 Offices / Lab 4,992 Pending Lease 341 Offices / Lab 6,953 430 Courtyard Restaurant 14,555 500 SPAG - Law Enforcement Classrooms 4,870 SPAG - First Right of Refusal 535 Research 44,814 Temporary Right of Entry - 25,000 sf / Hollands) 537 Office / Research 37,570 540 Auto Shop 6.185 Lease Pending City Street Department Page 3 of 5 AVAILABLE FOR LEASE - 2002 - 31 BLDGS CONTINUED OHM - PUBLIC BENEFIT TRANSFER -1 DEMOLITION - 82 BUILDINGS 3 Water Pump Station 750 21 Bowling Center 12,683 32 Animal Clinic 1,860 40 Test Cell 300 41 POL Fuel Stand 100 44 Vehicle Servicing Rack 100 45 Liquid Fuels Trco 440 47 Lox Storage 160 71 Electric Utility Vault 2,219 83 Water Pump Station 1,471 84 Shack 440 88 Flight Branch 660 97 Paint Barn 160 98 Hazmat Storage 296 99 Water Supply 180 103 Parts Storage 440 110 Control Tower 2,239 153 Storage 368 170 Shack 811 213 Storage 240 214 Bath House 1,626 Pool 215 Pool 4,000 251 Hazardous Storage 368 252 Hazardous Storage 1,327 270 Shack / Storage 916 320 Dormitory 29,780 420 Dormitory 28,788 421 Quality Training 4,824 470 Shack 916 507 Storage 144 541 Warehouse 9,421 Pending Lease - TTU Storage 542 Warehouse 9,266 Pending Lease - TTU Storage 550 Hazmat Storage 112 570 Shack 939 650 Carwash N/A 731 Latrine 216 770 Shack 969 780 Fuels Pump Station 198 792 Hush House 1061 Sold for Parts Page 4 of 5 RMI*IiqkgLolm •, 1Rib ro: 870 Shack 969 946 Latrine 216 970 Shack 916 1030 Dormitory 16,902 1066 Pool 3,300 1067 Bath House 2,000 1070 Shack 916 1140 Dormitory 17,269 1145 Dormitory 15,380 1150 Temporary Lodging Facility 10,616 1170 Shack 979 11731 Liquid Oxygen Plant 439 1220 Dormitory 17,269 1225 Dormitory 17,269 1234 Training Tower 728 1250 Latrine 216 2001 Sewage Treatment 991 2002 Storage 1,800 2003 Entomology 1,270 2004 Storage 572 2005 Hazardous Storage 2,714 2008 Waste Treatment Pump 196 2020 Gatehouse 121 2026 Latrine 47 2104 DRMO 4,000 2105 Water Pump House 168 2107 Storage 3,280 2108 Hazardous Storage 384 2110 Hazardous Storage 403 3011 Latrine 460 3015 Day Care 7,680 3016 Shed 100 3018 Recreation Storage 480 3113 Runway Supervision Unit 472 3114 Runway Supervision Unit 472 3116 Runway Supervision Unit 472 3118 Runway Supervision Unit 472 31191 Radio Transmitter / Receiver 81 3120 Shed 196 3122 Vortac / Tacan 900 3130 Generator House 186 6570 Shack 969 �.��',{, *'�� a:.� � ^ �' I — ' h" ! �<.. , Jf — ,�,. '`vs�,_ , SSE • �`�',�ea, . �t�' �; SUMMARY 30 Public Benefit Transfer - (CAM Fees Only - No Lease Income) 16 Leased - (3 are LRRA Buildings- No Lease Income) 82 Demo 31 Available Currently - (All require various levels of repair / renovation / some pending leases) 158 TOTAL BUILDINGS Page 5 of 5 Resolution No. 2002-R0077 EXHIBIT "B" SCHEDULE OF COMMON AREA MAINTENANCE FEES Resolution No. 2002-R0077 EXHIBIT "B" LUBBOCK REESE REDEVELOPMENT AUTHORITY CAM FEE SCHEDULE (COMMON AREA MAINTENANCE) FY 2002 REVISED 01/30/02 TOTAL SQ. FT. LEASED / PBT (01/30/02) 532,279 / SF CAM TOTAL COST / SF $1.52 / SF Resolution No. 2002-R0077 EXHIBIT "C" SCHEDULE OF AVAILABLE FUNDS EXHIBIT "C" Resolution No. 2002—R0077 Lubbock Reese Redevelopment Authority FY 00-02 Combining Budget Cash Flow Analysis October 2001 Through September 2002 General OEA Marketing Caretaker '01= 02 Fund Fund Fund Fund Total Beginning Cash $ 414,014 $ 32,399 $ 273,938 $ 734,558 $ 1,454,908 Beginning Investments $ 1,395,335 $ 473,655 $ 1,868,990 Add: Net Income from $ - Operations $ 15,750 $ - $ 48,250 $ - $ 64,000 Non -cash Expenses $ 55,069 $ 4,155 $ 59,224 Collections on Housing $ 1,000,000 $ 11000,000 Increase in Accounts Payable $ 2,400 $ 1,500 $ (8,700) $ (4,800) Decrease in Interfund Payables $ 9,698 Less: Capital Equipment $ (15,750) $ (48,250) $ (64,000) EDA Grant Match $ (693,300) $ (693,300) AFBCA Cash Advance $ (734,558) $ (734,558) Increase in Accounts Receivable (1) $ (19,315) $ 14,070 $ (5,245) Decrease in Accrued Liabilities $ (5,380) $ 3,823 $ (15,068) $ (16,625) Ending Cash $ 2,154,202 $ 27,018 $ 757,071 $ 0 $ 2,928,594 (1) Increase in accounts receivable in General Fund due to increase in CAM fees in FY 2002 Resolution No. 2002-R0077 EXHIBIT "D" CONDITION ASSESSMENT REPORTS EXHIBIT "ID" Resolution No. 2002-R0077 6-Cr, Reese Technology Center A Master -Planned Research & Business Park POTENTIAL LEASE SPACE 1 /28/2002 NOTE: Upgrades paid through Reimbursable Lease Program r - 7 Radar! Communication 3,032 $1.52 $2.00 - $3.00 $10,672.64 - $13,704.64 $30,320.00 11 Post Office 4,156 $1.52 $2.00 - $3.00 $14,629.12 - $18,785.12 $41,560.00 15 Library 10,376 $1.52 $2.00 - $3.00 $36,523.52 - $46,899.52 $103,760.00 36 Data Automation 8,507 $1.52 1 $3.00 - $4.00 $38,451.64 - $46,958.64 $85,070.00 51 Engine Hanger 6,750 $1.52 $1.00 - $2.00 $17,010.00 - $23,760.00 $67,500.00 52 Engine Hanger 70,726 $1.52 $1,00 - $2.00 $178,229.52 $248,955.52 $707,260.00 59 Aircraft Fab Hanger 26,187 $1.52 $1.00 $2.00 $65,991.24 - $92,178.24 $261,870.00 60 Fuel Sys. Hanger 6,750 $1.52 $1.00 $2.00 $17,010.00 $23,760.00 $67,500.00 " 70 Aircraft Hanger 20,000 $1.52 $1.00 - $2.00 $50,400.00 - $70,400.00 $200,000.00 79 Base Operations 6,947 $1.52 $3.00 - $4.00 $31,400.44 - $38,347.44 $69,470.00 82 Hangar 55,318 $1.52 $2.00 - $3.00 $194,719.36 $250,037.36 $55,000.00 89 NDI Lab 6,951 $1.52 $2,00 - $3.00 $24,467.52 $31,418.52 $69,510.00 92 T-37 Hanger 24,080 $1.52 $1.00 - $2.00 $60,681.60 - $84,761.60 $240,800.00 123 Theater 9,507 $1.52 $2.00 - $3.00 $33,464.64 $42,971.64 $95,070.00 210 Gymnasium 22,660 $1.52 $2.00 - $3.00 $79,763.20 - $102,423.20 $226,600.00 220 Airman's Dorm 28,788 $1.52 $1.00 $2.00 $72,545.76 $101,333.76 $287,880.00 230 Headquarters Bldg. 23,912 $1.52 $2.00 - $3.00 $84,170.24 - $108,082.24 $239,120.00 310 Family Center 12,701 $1.52 $2.00 - $3.00 $44,707.52 $57,408.52 $127,010.00 315 Enlisted Club 14,080 $1.52 $2.OD - $3.00 $49,561.60 $63,641.60 $140,800.00 340 Arts and Crafts 4,992 $1.52 $2.00 - $3.00 $17,571.84 - $22,563.84 $49,920.00 341 Child Care Center 6,953 $1.52 $2.00 $3.00 $24,474.56 - $31,427.56 $69,530.00 430 Caprock Cafe 14,555 $1.52 $3.00 - $4.00 $65,788.60 $80,343.60 $145,550.00 500 Security Building 7,323 $1.52 $2.00 - $3.00 $25,776.96 - $33,099.96 $73,230.00 535 Commissary 44,814 $1.52 $2.00 - $3.00 $157,745.28 $202,559.28 $448,140.00 537 Base Exchange 37,570 $1.52 $2.00 - $3.00 $132,246.40 - $169,816.40 $375,700.00 540 Auto Hobby Shop 6,185 $1.52 $2.00 - $3.00 $21,771,20 - $27,956.20 $61,850.00 541 Warehouse 9,421 $1.52 $1.00 - $2.00 $23,740.92 - $33,161.92 $94,210.00 542 Warehouse 9,266 $1.52 $1.00 - $2.00 $23,350,32 - $32,616.32 $92,660.00 1130 Officers Club 22,381 $1.52 $2.00 - $3.00 $78,781A2 - $101,162.12 $223,810.00 1180 T-1 Hanger 47,440 $1.52 $1.00 $2.00 $119,548.80 - $166,988.80 $474,400.00 1300 Hospital 60,628 $1.52 $2.00 - $3.00 $213,410.56 - $274,038.56 $606,280.00 0 NOTE: Building #70 - 5,850 SF is office space leased by Asian. ***NOTE: All buildings are in need of some repair. Amount of repair to each building will vary. Resolution No. 2002-R0077 EXHIBIT "E" SCOPE OF SERVICES SCOPE OF SERVICES The anticipated scope of services to be provided by MLI is expected to include, but is not limited to, the following: A) Initiate and establish contact with prospective users/buyers/investors, including MLI's current prospects, to determine their capacity and desire for available buildings or land. Qualifying characteristics will include the size of the company by employee count, dollar value of company, financial strength of company, ability of company to use existing structures, and potential to capitalize on emerging technologies as developed at Reese Center. B) Upon direct referral of specific contacts from LRRA, respond to inquiries and proceed with proposals consistent with information provided in Exhibits A-D of the Agreement. C) Arrange meetings and tours with prospects in coordination with management of LRRA. D) Submit preliminary proposal to potential users/buyers/investors. Subject to Section 4 of the Agreement, LRRA reserves the right to review proposals before they are submitted to prospects. E) Follow up on submittals. F) Conduct inspection and review of project and properties with users/buyers/investors. G) Prepare and submit quarterly status reports to LRRA. H) Qualify Prospects: ♦ Business plan and job creation potential ♦ Experience ♦ Motives ♦ Timing ♦ Financial Capability Due diligence must be conducted by the prospective tenant or user and not by MLI or the LRRA on behalf of the prospective tenant or user unless specifically disclosed and agreed to in writing by all parties. All proposals to prospects will include such disclosure. Resolution No. 2002-R0077 EXHIBIT "F" LIST OF AREAS AFFECTED NORTHWEST RUBBLE AREA NORTH RUNWAYS SSA SMALL ARMS FIRING RANGE KE i` t r; J ^1 / Z 0 H FORMERLY ACTIVE FTA _ SOUTHWEST NDFILL —,. I' AREA AND _DG. 43 OV EXHIBIT "F" OLD FTA 2 —TOWER AREA (SOIL) TOWER AREA SSA L___ C.E. PAINT SHOP TRENCH BLDG. 555 OWS 2120 PICNIC LAKE UPPER SITE a INDUSTRIAL DRAIN 2110/ LINE (PICNIC LAKE/ 2114 GOLF COURSE LAKE) pqN T �4np GOLF N N BpV ND COURSE $ S,gNTq F y GREENS LANDFILL 4 GOLF COURSE LAKE GOLF COURSE PERIMETER ROAD SSA , GREENS HURLWOOD ACQUISITION HURLWOOD ACQUISITION LANDFILL (GROUNDWATER) II LANDFILL (SOIL) N O R T H LEGEND FIRS 2 (RES) DEED BENZENE UNRESTRICTED RECORDATION CONTAMINATION 0 FUTURE USE AREAS > 5 ug/L AREAS RRS 2 (IND) DEED RECORDATION TCE CONTAMINATION a AREAS > 5 ug/L RRS 3 DEED o i000 zoao s000 m n�. %_# L o % i 1%_#14 �. AREAS AREAS �Liu SCALE IN FEET�Li SCALE IN FEET a Reese AF8 Land Use Restriction/Institutional Control Areas