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HomeMy WebLinkAboutItem 03 - Opryland (Gaylord)ITEM ! 3 .. MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER4// MEETING DATE: SEPTEMBER 4, 2001 SUBJECT: OPRYLAND AMENDMENTS TO REDEVELOPMENT, CONSTRUCTION DEVELOPMENT AN OPERATING & MAINTENANCE AGREEMENTS RECOMMENDATION: City Council to consider approval of amended Redevelopment, Construction Development, and Operating & Maintenance Agreements with Opryland Hotel -Texas, LP, and take any necessary action. BACKGROUND: The City initially approved the three agreements in 1999. The City Attorney has determined that TIF expenses programmed for improvements on the Hotel site can be incorporated into Opryland's construction contracts under Section 380 of the Texas Local Government Code. Combining the expenses into one set of contracts for both the public and non-public elements of onsite facilities will help streamline the construction process. The amended agreements provide the necessary modifications in order to comply with the Section 380 approach for on-site public work. Staff recommends approval. JSL/dsm 0:\agenda\090401 \OHG_AGMTS_AMEND.agm August 29, 2001 (2:43PM) REDEVELOPMENT AGREEMENT AMENDMENT # 1 (Redevelopment Site No. ) THIS REDEVELOPMENT AGREEMENT (this "Agreement"), is made and entered into as of the day of , 2001 by and between the CITY OF GRAPEVINE, TEXAS, a home rule municipality located in the counties of Tarrant, Dallas and Denton, Texas (the "City", and Opryland Hotel —Texas, Limited Partnership ("Developer"). (The City and Developer are sometimes hereinafter referred to individually as a "Party" and collectively as the "Parties".) RECITALS: A. The City has the authority to adopt tax increment financing pursuant to the Tax Increment Financing Act, V.T.C.A., Tax Code §§311.001 et seq., as amended (the "Act"), for areas within its jurisdiction designated by the City as reinvestment zones pursuant to the Act, and to implement other economic development or financing programs pursuant to Chapter 380 of the Local Government Code and other statutes and the City's home -rule powers. B. The City has authorized the preparation of a preliminary project plan and a preliminary reinvestment zone financing plan concerning the approximately 121.8 acre area legally described in Exhibit A-1 attached hereto and made a part hereof and depicted on Exhibit A-2 attached hereto and made a part hereof (the "Reinvestm6nt Zone"). C. In accordance with the Act, the City, after giving all notices required by law, conducted a public hearing with respect to the creation of a reinvestment zone and its benefits to the City and to property within the proposed reinvestment zone at a meeting of the Mayor and City Council held on December 8, 1998. D. On December 8, 1998, the City, after giving and publishing all notices required by law and after conducting all public hearings required by law and after making all presentations to, and conducting all meetings with, each taxing unit that levies taxes on real property in the Reinvestment Zone as required by the Act, adopted Ordinance No. 98-140, entitled "An Ordinance of the City Council of the City of Grapevine, Texas Designating a Certain Area as Tax Increment Financing Reinvestment Zone Number Two, City of Grapevine, Texas; Establishing a Board of Directors for such Reinvestment Zone and Other Matters Relating Thereto; Providing a Clause Relating to Severability; Declaring an Emergency and Providing an Effective Date," which ordinance, among other things, designated the property within Reinvestment Zone as the "Tax Increment Financing Reinvestment Zone Number Two, 8/6101 0:\STAN\GAYLORDWGREEMNT\DRAFTDEV6_REVI SION3_8-6-01 City of Grapevine, Texas"; and the City Council has approved a Redevelopment Agreement Between the City of Grapevine and Developer; Authorizing and Directing the Mayor to Execute Said Agreement on Behalf of the City; Declaring an Emergency and Providing an Effective Date," authorizing the City Mayor to execute and the City Secretary to attest this Agreement. E. In accordance with the Act, the Board of Directors of the Reinvestment Zone has prepared a project plan (the "Project Plan") and a reinvestment zone financing plan (the "Financing Plan"; the Project Plan and the Financing Plan are sometimes collectively referred to in this Agreement as the "Plans") and the City, in accordance with the Act and after making all findings required by the Act, have adopted, or will adopt, an ordinance approving the Plans. F. Developer is the contract purchaser and proposed developer of the approximately 52.25 acre parcel of real property within the City and within the Reinvestment Zone and generally located and bounded by Ruth Wall Street to the west and Corps of Engineers Property/Grapevine Lake on the north, east and south, and legally described in Exhibit B attached hereto (the "Property"), which Property shall also be known as Redevelopment Site No. 1 in the Reinvestment Zone. G. The Property is zoned "PCD" Planned Commerce Development under Ordinance No. 82-73, the Comprehensive Zoning Ordinance of the City, also known as Appendix "D" of the City's City Code, as currently amended and in the form existing as of the date hereof (the "Zoning Ordinance"). H. Developer currently intends to develop and improve all or a portion of the Property as a destination Hotel and Convention Center (generally referred to herein as the "Project") as described in Section 4.1 of this Agreement. 1. To facilitate the development of the Property, and subject to and in accordance with the terms of this Agreement and the limitations hereinafter stated, the City has agreed (i) to undertake to construct various Public Improvements (collectively, the "Public Improvements") and Section 380 Improvements (collectively the "Section 380 Improvements") listed in Exhibit C and to incur Project Costs (as defined in Section 5.1 (a)) in connection with such Public Improvements and Section 380 Improvements and pay for such Project Costs using the proceeds of the City Instrument (as hereinafter defined) or from the City's implementation of other development or financing programs authorized by statute or the home -rule powers of the City, and (ii) to use the proceeds of the City Instrument or from the City's implementation of other development or financing programs authorized by statute or the home -rule powers of the City to pay the costs of those eligible Project Costs that either or both the Developer and the City incurs as provided in Article VII of this Agreement in connection with the redevelopment (including, without limitation, demolition, site preparation, installation of utilities, construction of Public Improvements, Section 380 improvements,etc.), financing and use of the Property. 816/01 161 0:\STAN\GAYLORD\AGREEMN'RDRAFTDEV6-REVISION3-8-6-01 ll1 v,. J. This Agreement has been submitted to the City for consideration and review, and the City has taken all actions required to be taken prior to the execution of this Agreement in order to make the same binding upon the City according to the terms hereof. K. The City, after due and careful consideration, has concluded that the redevelopment of the Property as a portion of the Reinvestment Zone as provided for herein and in the Project Plan will further the growth of the City, facilitate the redevelopment of the entire Reinvestment Zone, improve the environment of the City, increase the assessed valuation of the real estate situated within the City, foster increased activity within the City, increase employment opportunities within the City, upgrade public infrastructure within the Reinvestment Zone, and otherwise be in the best interests of the City by furthering the health, safety, morals and welfare of its residents and taxpayers, and that entering into this Agreement is necessary and convenient to implement the Plans and achieve their purposes. L. The City is desirous of having Developer undertake the Project in order to serve the needs of the City and in order to produce increased tax revenues for the various taxing units authorized to levy taxes on real property within the Reinvestment Zone and the City and, in order to stimulate and induce the redevelopment of the Reinvestment Zone, the City has agreed to finance certain Project Costs, including through property tax increment revenues and through the issuance of the City Instrument, all in accordance with the terms and provisions of the Act and this Agreement. NOW, THEREFORE, in consideration of the foregoing and Of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties do hereby agree as follow: ARTICLE I. RECITALS PART OF AGREEMENT 1.1 Incorporation of Recitals. The representations, covenants and recitations set forth in the foregoing recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Article I. ARTICLE II MUTUAL ASSISTANCE 3 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 2.1 Cooperation. The parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications (and, in the City's case, the adoption of such ordinances and resolutions), as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out said terms, provisions and intent. Further, the City agrees (absent any uncured breach of the terms of this Agreement by Developer resulting in a default pursuant to Section 10.2 hereof) that it will not revoke or amend the ordinances adopted by the City relating to the Reinvestment Zone, the Plans and this Agreement without the prior written consent of Developer. The Parties shall cooperate fully with each other in seeking from any or all appropriate governmental bodies (whether federal, state, county or local) financial or other aid and assistance required or useful for the construction or improvement of property and facilities in and on the Property or for the provision of services to the Property, including, without limitation, grants and assistance for public transportation, roads and highways, water and sanitary sewage facilities and storm water disposal facilities. ARTICLE III EFFECTIVENESS OF AGREEMENT. 3.1 Effective Date. This Agreement shall become effective from and after its approval and execution by both parties. The City's obligations to construct the Public Improvements in accordance with Section 4.3 of this Agreement and to have constructed the Section 380 Improvements in accordance with Section 4.4 of this Agreement shall become effective and enforceable at such time as Developer delivers notice reasonably satisfactory to the City Manager and City Attorney as described yin Section 5.4 of this Agreement. Developer shall give such notice to the City on or before March 31, 2000, provided that, in the event that the United States Army Corps of Engineers has not issued final approval of the Project by February 1, 2000, such date shall be extended by 90 days. Such date may be further extended by mutual agreement of the Parties. The rights and obligations of Developer hereunder shall not be effective unless and until Developer (or its nominee) delivers the notice described in Section 5.4 of this Agreement. ARTICLE IV. REDEVELOPMENT AND USE OF THE PROPERTY; CONSTRUCTION OF THE PUBLIC IMPROVEMENTS AND CONSTRUCTION OF THE SECTION 380IMPROVEMENTS 4.1 The Project. Developer shall construct the Project in conceptual conformance with a Concept Plan to be provided to the City. Project shall consist of an approximately 1,500 room destination hotel and convention center complex with an El 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 enclosed atrium, a 400,000 SF Convention Center including meeting, exhibit and pre - IQ function facilities, and a Subterranean Parking Garage and a Surface Parking Lot in combination sufficient to support the hotel and convention center facilities. 4.2 Development Fees and Expenses. (a) Except for the water and sewer impact fees attributable to the development of the Property, the City does not now levy or assess and shall not, in the future, levy or assess any special taxes, fees, exactions, impositions, or assessments of any form against the Property, not heretofore levied and assessed that are not applicable to and apply to all other properties in the City equally and uniformly and in the same manner. Said water and sewer impact fees shall be due upon building permit application and shall be applied as follows: Hotel Fee applied to acreage of Hotel footprint - # acres x $ 27,282.79 / acre Commercial Fee applied to balance of site - # acres x $ 3,808.26 / acre (b) Building Permit Fees, including Building Inspection, for the Private Elements of the Project shall be fixed at $ 400,000.00. Developer, at his discretion, may submit payment for said fees in up to three installments payable over three years with no single installment payment being less than 33% of the fixed fee. Overtime expenses for Building Inspection and Building Department Services on Private Improvements of the Project shall be billed by the City to Developer on a monthly basis and shall be established by City payroll records for each pay period reflecting 1.5 times the sum of salaries plus benefits. Overtime expenses on Private Improvements of the Project shall be incurred for any Building Inspections or Building Department Services requested by the Developer that fall partially or in total outside of the normal work day of 7:30 AM to 4:30 PM, Monday through Friday, or any time on Saturdays, Sundays aihd City observed Holidays. Each contract for Private Improvements shall include the provision for reimbursement to the Developer by the contractor for all Building Inspection Overtime billed by the City to Developer. (c) Developer shall provide a project office for use by City Staff and Construction Inspectors during the construction of the Project at its sole cost. Project office shall accommodate the following: Two Building Inspectors One Third Party Construction Inspector One City Building Official One Building Plans Examiner One Fire Plans Examiner Two Large Plan Review Areas One Large Documents Storage Area 8/6/01 5 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 The office shall be furnished with furniture, office supplies, and shall include all necessary utilities including but not limited to water, wastewater, electricity, telephone, and data transfer facilities. 4.3 Public Improvements (a) Definition: Public Improvements are defined as those improvements to be designed, constructed and maintained solely by the City. The bridge shall be designed, constructed and maintained by the City with standard features similar to those on the new Pool Road Bridge over Big Bear Creek. Added architectural features to the bridge in excess of the features on the Pool Road Bridge that are requested by Developer shall be funded solely by Developer. The Improvements shall be constructed solely within City rights of way and easements, or on United States Army Corps of Engineers (COE) Fee Land and COE Flowage Easements under License Agreement between the City and the COE. Specific Elements of the Public Improvements are shown in Exhibit C to this agreement. (b) Design of Public Improvements. All Public Improvements shall be designed under contract with the Developer at Developer's sole cost and eligible for reimbursement from the fund, with the exception of added architectural features to the bridge which shall be designed by and construction funded solely by Developer. Expenses incurred by the Developer in the design of the Public Improvements shall be reimbursed from the Fund at the sole discretion of the City. The design of Public Improvements shall be jointly approved by the City and Developer. Approval of the design shall not be unreasonably withheld by Developer. (c) Public Improvements Funding I.Budge (i) 'Funding for Public Improvements shall be solely from the funds derived from the issuance of the City Instrument. A budget will be prepared by the City and Developer to estimate the cost of the Public Improvements and determine the balance of the Instrument Funds to be used in participation with the Developer in funding the Section 380 Improvements. (Exhibit D) The budget will include a Contingency of 10% of total project costs for unanticipated modifications to the Public Improvements. The budget for the Public Improvements shall be jointly approved by the City and Developer. Approval of the budget shall not be unreasonably withheld by Developer. (ii) Change Orders to the Public Improvement Contracts may be reviewed by Developer for comments but will be approved solely by the City in its normal operational process. Any increases in cost to the Public Improvement Contracts shall be funded from these designated Contingencies. Any increases in contract costs in excess of the available Contingency funds shall be approved by both the City and Developer. (iii) At the written request of the Developer and to expedite the development of the Public Improvements, Developer will engage design contracts for Public Improvements in advance of funding through the City Instrument. Upon 8/6/01 13-9 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 notification from Developer under Section 5.4 of intent to construct the Project, City shall fund the Public Improvements through the City Instrument and shall reimburse Developer for design expenses funded from Developers funds. (d) Construction of Public Improvements. All Public Improvements shall be constructed under contracts solely between the City and private contractors in accordance with all applicable State laws. Construction Management and Inspection for the Public Improvements shall be performed by the City Staff in the normal course of daily operations with assistance from Developer in performing the Construction Management duties. (e) Obligation to Construct Improvements The City's obligation to construct the Public Improvements in accordance with this Section 4.3 shall become effective and enforceable at such time as Developer delivers to the City the notice provided for in Section 5.4 of this Agreement. Upon delivery of such notice, the City agrees to commence construction of the Public Improvements. The City and Developer shall cooperate and coordinate their activities with respect to the commencement and construction of the Public Improvements and the Project so that the commencement and construction of the -Public Improvements shall occur at such times as are necessary to meet the construction time requirements of Developer for the Project. 4.4 Section 380 Improvements (a) Definition: Section 380 Improvements ("Section 380 Improvements") are defined as those improvements to be jointly owned by the City and Developer under the terms of an Operations and Maintenance Agreement to be entered into between City and Developer which will identify specific ownership limits and operations obligations in each facility. At a minimum, the specific limits of City ownership of each facility will be defined as the entire Parking Garage beneath the Convention Center and that portion of the Convention Center which falls upon COE Fee Land or Flowage Easement. The Section 380 Improvements will be designed by the Developer and constructed by the Developer's General Contractor in accordance with Section 380 of the Texas Local Government Code and other applicable State law. The bidding and contract documents shall be separated into Section 380 and Developer funded elements to facilitate the payment tracking process. Construction Management will be provided by Developer under the terms of Article VII of this Agreement. Developer will operate and maintain each facility in its entirety under the terms of an Operations and Maintenance Agreement. Specific Elements of the Section 380 Improvements are shown in Exhibit C to this agreement. (b) Design of Section 380 Improvements All Section 380 Improvements shall be designed at Developer's sole cost. Expenses incurred by the Developer in the design of the Section 380 Improvements may be reimbursable from the Fund at the sole discretion of the City upon the Developer's submittal of 8/6/01 7 0:\STAN\GAYLORD\AGREEMNT\DRAFfDEV6 REVISIONS 8-6-01 documentation acceptable to the City Attorney including but not limited to copies of the contracts and payment records. (c) Section 380 Improvements / Operations and Maintenance Agreements Prior to advertising Section 380 Improvements for, construction, the City and Developer shall enter into the Operations and Maintenance Agreement stipulating the details of the separation of ownership within the Section 380 Improvements, and stipulating the details of the Developers Management, Operation and Maintenance of the Section 380 Improvements, including a Lease fee of $ 1 per year. (d) Section 380 Improvements Funding I Budge (i) Funding for Section 380 Improvements shall be from proceeds from the City's Instrument and from Developer funds. The balance of the City Instrument's funds, after Public Improvements funding, shall be applied to the Section 380 Improvements. The City funding required for the North Surface Parking Lot, solely owned by the City, shall establish the final City ownership of the Convention Center with the condition that, at minimum, the City shall own that portion of the Convention Center that lies within COE Fee Land or COE Flowage Easements, regardless of final funding availability. (ii) A budget will be prepared by the City and Developer to estimate the cost of the Section 380 Improvements and determine the balance of the Instrument Funds to be used in participation with the Developer in funding the Section 380 Improvements. The budget will include a Contingency of 10% of total project costs for unanticipated modifications to the Section 380 Improvements. Any increases in cost to the Section 380 Improvements Contracts shall be funded from these designated Contingencies. The budget for the Section 380 Improvements shall be jointly approved by the City and Developer. Approval of the budget shall not be unreasonably withhdld by Developer or City. (iii) Change Orders to the Section 380 Improvements Contracts will be approved jointly by the City and Developer conditioned by the requirement that Developer shall review and submit recommendations to the City on proposed change orders within twenty (20) working days of receipt of proposed change order. (e) Construction of Section 380 Improvements. (i) All Section 380 Improvements shall be constructed under contracts between the Developer and its General Contractor in accordance with Section 380 of the Texas Local Government Code and all applicable State laws. The bidding and contract documents shall be separated into Section 380 and Developer funded elements to facilitate the payment process. (ii) The City's obligation to fund the construction of the Section 380 Improvements in accordance with this Section 4.4 shall become effective and enforceable at such time as Developer delivers to the City the notice provided for in 8/6/01 M O:XSTAN\GAYLORD\AGREEMNTlDRAFTDEV6-REVISION3-8-6-01 Section 5.4 of this Agreement and the funding provided for in Section 4.4 of this Agreement. Upon delivery of such notice and funds, the City agrees to fund the construction of the Section 380 Improvements. The City and Developer shall cooperate and coordinate their activities with respect to the commencement and construction of the Section 380 Improvements and the Project so that the commencement and construction of the Section 380 Improvements shall occur at such times as are necessary to meet the construction time requirements of Developer for the Project. The Parties agree to jointly prepare (and update, from time to time, as necessary) a construction schedule of the Section 380 Improvements in order to help implement the Parties' obligations pursuant to this Section 4.4. The Parties agree that they will jointly decide what items will be Section 380 Improvements funded as Project Costs and the costs of such items. The Developer further agrees to supply City with copies of the General Contractor's contract to be entered into by the Developer with respect to the Section 380 Improvements, as well as all change orders and requests therefor pursuant to such contracts prior to their approval by the Developer, all for City's review and approval. (iii) To the extent that any of the Section 380 Improvements to be constructed under the management of the Developer pursuant to Article VII of this Agreement are to be located in City owned rights -of way or in areas granted to the City for use by the COE, the City shall grant to Developer and its designees access thereto to enable the construction of such Section 380 Improvements. The costs to undertake or construct such Section 380 Improvements constitute some of the Project Costs Developer expects to incur in furtherance of the Project. The preliminary description of the matters included within such Section 380 Improvements is contained in the items listed in Exhibit C. As an agent of the City, Developer shall cause such Section 380 Improvements to be constructed in substantial accordance with the Plans approved by the City as set forth in subparagraph (iv) below. Those costs in connection with the design, engineering and construction of such Section 380 Improvements, which costs shall be deemed eligible Public Costs to the maximum extent permitted by law, may be paid to Developer from the Fund as set forth in Article V at the sole discretion of the City. (iv) The City and Developer shall jointly review and approve the construction plans for the Section 380 Improvements prior to the advertisement of the projects for bid and subsequent commencement of construction thereof. (v) The Parties acknowledge and agree that Exhibit C is intended solely to include the preliminary description of the Public Project Costs and Section 380 Project Costs that City is to fund; Exhibit C is not intended to be an exhaustive or exclusive list; provided, however, that City shall not fund more than $27,500,000.00 from the TIF as payment and reimbursement for all Public and Section 380 Project Costs that City incurs. The City and Developer agree and acknowledge that Developer may seek and receive payment and reimbursement in accordance with this Agreement, subject to City Attorney approval, for all eligible Project Costs Developer incurs, out of Instrument Proceeds and Tax Increment and other funds available under 8/6/01 9 0:\STAN\GAYLORD\AGREEMNT\DRAFfDEV6 REVISION3 8-6-01 this Agreement, subject only to the limitation on the maximum amount of payment and reimbursement set forth in the preceding sentence. Notwithstanding anything to the contrary contained in this Agreement, the City's obligation to fund Public and Section 380 Project Costs through direct disbursement and reimbursement to Developer shall not exceed $27,500,000-00. The City's obligation to fund Public and Section 380 Project Costs with the proceeds from the sale of the City Instrument shall not exceed $27,500,000-00, plus the cost of issuance, capitalized interest and necessary reserve funds in connection with the City Instrument. (f) Section 380 Improvements Construction Inspection: City shall engage the services of a Construction Inspector, subject to the reasonable approval of the Developer, to provide construction inspection services on the Section 380 Improvements. Costs incurred for said inspection shall be funded from the Fund. Overtime costs incurred for Construction Inspection on the Section 380 Improvements shall be reimbursed to the Fund by the respective contractor or contractors on the Section 380 Improvements, Provisions for this reimbursement requirement shall be included in all contracts for construction of the Improvements. 4.5 Developer's Rights in the Event of the City's Default on Public o Section 380 Improvements. In the event the City fails to complete the Public or Section 380 Improvements and defaults under this Agreement, then Developer, in addition to its rights under Section 10.2 of this Agreement, may compel the City to fund and complete the Public or Section 380 Improvements by mandamus, specific performance or mandatory permanent injunction. In the event the City's contractors default in the completion of the Public or Section 380 Improvements and the City fails to enforce the applicable statutory bonds, Developer shall be entitled to a novation of all the City's right, title and interest in and to the statutory performance, payment and maintenance bonds by which Developer will be substituted for the City with respect to all of the City's right, title and interest in and to such bonds. The City shall cause the surety issuing such bonds to name Developer as a dual obligee under such bonds. The City shall execute one or more conditional assignments, in form and substance reasonably acceptable to Developer, assigning to Developer, in the event the City fails to prosecute its rights under such bonds all of the City's right, title and interest to such bonds. ARTICLE V. PAYMENT AND REIMBURSEMENT OF ELIGIBLE PROJECT COST 5.1. Definitions of Project Costs, Tax -Increment, City Instrument and Instrument Proceeds. (a) For purposes of this Agreement, "Project Costs" shall mean and include all costs expended by the City in connection with the design and 8/6/01 10 0:\STAN\GAYLORD\AGREE MN-RDRAFTDEV6-REVISION3-8-6-01 construction of Public Improvements and Section 380 Improvements as permitted by 411 t, Section 311.002(1) of the Act as now or hereafter provided. (b) For purposes of this Agreement, "Tax Increment" shall mean one hundred percent (100%) of the amount determined pursuant to Section 311.012 of the Act for each taxing unit that levies taxes on real property in the Reinvestment Zone. (c) For purposes of the Agreement, "City Instrument" shall mean a debt instrument or other instruments to be issued and sold by the City in accordance with the Act or other applicable Texas law (and in accordance with a schedule of issuance agreed to by the Parties) in the aggregate principle amount necessary to produce Instrument Proceeds (as hereinafter defined) of not less than $ 27,500,000.00 and, if issued pursuant to the Act, having a term not to exceed the maximum term permitted by Section 311.015(1) of the Act. (d) For purposes of this Agreement, "Instrument Proceeds" shall mean all net proceeds, after deducting all issuance costs and any amounts for capitalized interest and interest reserves, received by the City in connection with the issuance and sale of the City Instrument. 5.2. Bonds. (a) The Parties acknowledge that the development and construction of Public and Section 380 Improvements in the Reinvestment Zone as provided in the Project Plan and this Agreement can only occur with the use of Instrument Proceeds which Instrument Proceeds, together with Tax Increment and other funds available under this Agreement, shall be used to pay for certain eligible Project Costs. (b) Upon delivery of the notice provided for in Section 5.4 of this Agreement, the City agrees to promptly commence the process to issue and sell the City Instrument. Notwithstanding anything to the contrary contained in this Agreement, the City shall not be obligated to issue and sell the City Instrument until Developer has delivered to the City the notice provided for in Section 5.4 of this Agreement. Upon delivery of the notice provided for in Section 5.4 of this Agreement, the City shall complete the process to issue and sell the City Instrument, and the City shall promptly issue and sell the City Instrument and shall hold and disburse the Instrument Proceeds as provided in this Agreement. The City shall use its best efforts to structure the City Instrument so that it is and remains exempt from taxation under the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder. The City Instrument and payment of eligible Project Costs shall be secured, in whole or in part, by the funds deposited, from time to time, in the Tax Increment Fund (the "Fund") created by the City pursuant to the Act, this Agreement and the ordinances adopted by the City relating to the Reinvestment Zone, which funds shall include the Tax Increment and interest earned on investment of monies within the Fund. The City pledges that it will deposit the entirety of such funds into the Fund. The amounts deposited in the Fund shall be disbursed in accordance with this Agreement, the City Instrument and any 8/6/01 11 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 trust indenture entered into, or bond ordinance adopted, in connection with the City Instrument (which trust indenture or bond ordinance shall not conflict with the provisions of this Agreement). The City agrees to provide Developer with copies of any proposed bond ordinance, trust indenture and preliminary official statement prior to the adoption of any bond ordinance in connection with the City Instrument. In addition, to the fullest extent permitted by law, the City agrees that (i) it will not, without the prior written consent of Developer, which consent may be withheld in its sole or absolute discretion, revoke or amend any ordinances or resolutions adopted by the City relating to the Reinvestment Zone or the City Instrument, (ii) it will not pledge or apply the Tax Increment or any other monies in the Fund to any other purpose or payment of any obligation of the City except for the City Instrument and obligations arising under this Agreement, (iii) it will not commingle the Tax Increment with any other funds of the City, (iv) it will not take any action or omit to take any action that will affect the continued existence of the Fund or the availability of the Tax Increment to pay the City Instrument and the other obligations under this Agreement, (v) it will take all actions and submit all documents in a timely manner in order to receive all Tax Increment, (vi) it will institute and pursue to a final order or judgement any bond validation action Or suit upon reasonable request by Developer, and (vii) it will direct the investment of the Tax Increment in accordance with Texas law applicable to investment of funds by municipalities. In addition, the City agrees that it will not refund the City Instrument in any manner that would change the obligations of Developer under this Agreement. The Parties agree that they will take all actions necessary, at no cost to Developer, to ensure that the interest payable on the City Instrument is and remains exempt from taxation under the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder. 5.3 Disbursement of Funds Fund Tracking and Method of Payment. (a) Monthly Pay Estimates on Public Improvements shall be processed solely by the City in the course of normal business operations. Monthly Pay Estimates on Section 380 Improvements shall be submitted by the Developer, in the role of Construction Manager, to the City for payment. Construction Manager shall complete its review of the Monthly Pay Estimates within ten (10) working days from receipt and forward its recommendation to the City for action. (b) City shall provide Project Budget and Expenditure / Fund Tracking on all Public and Section 380 Projects reflecting all payments issued by the City from the Fund and from Developer Funds. (c) In the event that the City is unable to provide the agreed to funding through the City Instrument and no alternative arrangements are agreed to by both parties then: 8/6/01 (i) costs incurred by the City shall be borne solely by the City, and 12 0:\STAN\GAYLO RD\AG REE MNT\DRAFTDEV6_REV I S I O N3_8-6-01 (ii) the Agreement shall terminate and the parties shall have no a further obligations to each other. 5.4 Notice of Developer Commitment to Project. Developer shall deliver notice to the City that Developer has committed to the Project in, a form satisfactory to the City Manager and City Attorney. Provided, however, that notwithstanding the forgoing to the contrary, and as except as set forth in Section 5.3 of this Agreement, in the event that Developer delivers the notice provided for in this Section 5.4, Developer shall indemnify and make whole the City for any outstanding bonded indebtedness or other expense of the City related to the Project for Public and Joint Improvements in the event the Project is not completed pursuant to a schedule mutually agreed upon by the City and Developer. 5.5. City Accounting. (a) The City shall maintain complete books and records showing deposits to and disbursements from the Fund of Tax Increment and Instrument Proceeds, which books and records shall be deemed complete if kept in accordance with generally accepted accounting principles as applied to Texas municipalities and in accordance with the provisions of the Act. Such books and records shall be available for examination by the duly authorized officers or agents of Developer during normal business hours upon request made not less than five (5) business days prior to the date of such examination. The City shall maintain such books and records throughout the term of this Agreement and for four (4) years thereafter, all subject to the requirements of the Act. (b) The City shall undertake an Independent Audit of all Instrument Funds and Eligible Expenses upon completion of the Public and Section 380 Projects. Cost for said Audit shall be considered an eligible expense under the TIF and shall be disbursed from the proceeds of the City Instrument. ARTICLE VI. JOINT MARKETING AGREEMENT City and Developer shall enter into a Convention Development and Marketing Agreement providing for joint marketing of the Project and the City. 8/6/01 ARTICLE VII. CONSTRUCTION MANAGEMENT 13 0:\STAN\GAYLORDWGREEMNT\DRAFiDEV6 REVISION3 8-6-01 7.1 Employment. City hereby employs the Developer to serve as Construction Manager to furnish supervisory and managerial services for all Section 380 Improvements. Developer hereby accepts said employment. Such projects shall be designed by Construction Manager at Construction Manager's sole cost with the City retaining review and approval rights. Developer will enter into Operation and Maintenance Agreements prepared by the City Attorney and Approved by the City Council for Section 380 projects prior to construction. City represents and warrants to Construction Manager that City is able to engage the Developer for personal services as described in V.T.C.A., Local Government Code §252.022(a)(4) for which competitive bidding is not required under any state statute or regulation including, but not limited to, Chapter 252 and 271 of the Texas Local Government Code or any comparable ordinance or regulation of City, and that City has full constitutional right and authority to engage a Construction Manager without advertising for bids or taking any actions other than adopting a resolution of City approving and authorizing the execution of this Agreement. 7.2 Definitions. In addition to any other terms defined herein, the following terms shall have the meanings ascribed to -them, unless the context clearly requires otherwise: (a) Approved Plans: the Public and Section 380 Improvements Plans submitted, or caused to be submitted by Construction Manager and approved by City. (b) Construction Schedule: the construction schedule for the construction of the Section 380 Improvements shall be jointly prepared and approved (and updated, from time to time, as necessary) by City and Construction Manager. (c) Project Engineers: the engineers engaged by Construction Manager in writing and ratified by City Council action as the engineers for the Section 380 Improvements. (d) Project Budget: the budget (including hard and soft costs) for construction of the Section 380 Improvements jointly prepared and approved by City and by Construction Manager in writing. Changes may be made to the Project Budget upon the mutual agreement of the Parties. Any such changes that do not increase the total cost of the Project Budget may be agreed to in writing by the City Manager on behalf of the City and Construction Manager's designated representative on behalf of Construction Manager. 7.3 Compensation. A construction management fee (the "Fee") in the amount of four percent (4%) of the total contract sum of all eligible engineering and construction contracts for the Public and Section 380 Improvements entered into on behalf of City or directly by City pursuant to this Agreement shall be paid to Construction Manager from the Fund for its services in connection with the development, construction and completion of the Public and Section 380 Improvements pursuant to this 8/6101 14 0:\STAN\GAYLORD\AGREEMNTIDRAFTDEV6-REVISION3-8-6-01 Agreement. The Fee shall be paid within thirty (30) days after receipt by City of an invoice with supporting documentation acceptable to the City Attorney for such Fee. 7.4 Services. The services of Construction Manager pursuant to this Agreement, for and in consideration of the Fee, shall be as follows: (a) Aid City in negotiations with the appropriate Project Engineer or Project Engineers in the general schematic layout of the Section 380 Improvements in accordance with the Approved Plans, and in the selection of the types of materials and equipment to be incorporated in the Work. Construction Manager shall cause the Section 380 Improvements Plans to be prepared and shall submit, or cause to be submitted, the Section 380 Improvements Plans to City for its review and approval. Except for the foregoing, nothing herein contained shall be deemed or construed as an obligation or an undertaking on the part of Construction Manager itself to furnish architectural or engineering services, it being expressly understood and agreed that all architectural and engineering services are being performed by the Project Engineers engaged by Construction Manager. (b) Provide preliminary evaluation of the Project Budget requirements, including preliminary estimates of the costs of construction. Advise on site use, selection of materials, building systems and equipment and methods of Project delivery. Provide recommendations on relative feasibility of construction methods, availability of materials and labor, time requirements for procurement, installation and construction, and factors related to cost including, but not limited to, costs of alternative designs or materials and possible economies. (c) Jointly with City, prepare and approve the Construction Schedule providing for the phasing of construction from commencement to completion, and periodically jointly update and approve the Construction Schedule. (d) Assist City in the bidding process for the Work; at City's request prepare bid analyses; and give advice and recommendations to City in the awarding of contracts for the performance of the Work. (e) Represent City in all matters requiring City's determination in its dealing with contractors, suppliers and others in the performance of the Work and all negotiations and communication between City and all contractors, suppliers and others shall be made through Construction Manager. (f) Record the progress of the Project, and advise City if it appears that the timetable for construction as set forth in the Construction Schedule may be materially exceeded, and make recommendations for corrective action. (g) Provide regular monitoring of the actual costs of construction; identify variances between actual costs and the Project Budget which will likely result, in Construction Manager's judgment, in a cost overrun; advise City if it appears that the 8/6/01 15 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-41 final costs of construction may exceed the Project Budget; and make recommendations for corrective action. (h) Determine in general that the Work of each contractor is being performed in accordance with contract requirements; endeavor to achieve satisfactory performance from the contractors in accordance with contract requirements; endeavor to guard City against defects and deficiencies in the Work; on behalf of City, reject Work which does not conform to contract requirements; and recommend courses of action to City when requirements of a contract are not being fulfilled, and the non-performing party will not take satisfactory corrective action. (i) Recommend necessary or desirable changes to City; review requests for changes; ensure that all structural, mechanical or electrical changes which are of such a material nature in Construction Manger's opinion as to require changes in the plans and specifications by the engineers of record, as the case may be, for the Project; if changes are agreed to by City and Construction Manager, prepare and forward to City change orders therefor for City's execution, which are in compliance with current applicable Texas statutes. City agrees to supply Construction Manager with copies of all change orders and requests therefor prior to their approval by City for Construction Manager's review and approval. Construction Manager agrees to review and provide comments on proposed change orders to City within ten (10) working days of receipt of same. 0) Review the safety programs developed by each contractor and coordinate the safety programs for the Project. (k) Maintain at the Project site or at its office, on a current basis: a record copy of all construction documents and contracts, including plans and specifications, change orders and other data and materials as would be required under sound construction management practices; and make all such records available to City and the appropriate Project Engineer or Project Engineers; at the completion of the Project, promptly deliver the originals of all pertinent construction documents and contracts to City (provided, however, the Construction Manager shall always be entitled to keep a set of duplicate originals or copies of all of the foregoing), and maintain all such records for a period of one (1) year. (1) Make provisions (including adequate notice to City to facilitate prompt payment) to secure for accrual to City, where available, trade discounts, rebates and refunds, and returns from the sale of surplus materials and equipment. (m) Provide administrative, management and related services as required to coordinate the work of the various contractors and workmen; provide sufficient organization, personnel and management to carry out the terms of the Agreement. 816/01 ON 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 (n) Perform such other services in connection with the Project as may y�raav;- be reasonably necessary to accomplish the foregoing, and as may be reasonably requested by City, and provide the facilities and services of its on-site personnel to the extent reasonably necessary and required to carry out Construction Manager's obligations under this Agreement. 7.5 Contracts. (a) The City finds that Developer has agreed to construct a 1,500 room or larger, major hotel project and a convention center containing at least 350,000 square feet and either owns or has a new lease on the project for at least 20 years and therefore, pursuant to the City Council Resolution 2001-29, has qualified for Expedited and Concurrent Bidding Procedures, said for its proposed Project which project is approved by this Agreement, to utilize said procedures, all of which are set out in City Council Resolution 2001-29, which Resolution is attached hereto, labeled Exhibit "E", and incorporated in the Body of this Agreement as if copied in its entirety. (b) As payments become due under such Section 380 Improvement contracts, Construction Manager shall notify City of the amount of such payments when due and City shall disburse, or cause to be disbursed, from the Fund to the Construction Manager the amount necessary to make such payment. City shall disburse, or cause to be disbursed, from the Fund to Construction Manager amounts equal to other eligible Project Costs that Construction Manager incurs as such Project Costs are incurred and funds are deposited into the Fund from the issuance of the City Instrument after Construction Manager has provided City with documentation of such expenditures reasonably satisfactory to City Attorney, including, but not limited to, copies of executed contracts, copies of past partial payments on such contracts, copies of past and current pay requests, and evidence that the work or Project Costs for which payment is requested has been completed. (c) Construction Manager shall not be (i) liable for the payment of any debts contracted by City in connection with the Section 380 Improvements, except to the extent of funds received by it for that purpose; (ii) responsible for construction means, methods, techniques and procedures employed by contractors in their performance; or (iii) liable or responsible for the failure of any contractor to carry out Work in accordance with its contract requirements or the negligence of any contractor in connection therewith. (d) Developer shall Indemnify and Hold Harmless the City of Grapevine from and against any and all claims, demands, damages, expenses, fines, penalties, suits, proceedings, actions and causes of any and every kind and nature, including reasonable attorneys' fees and court costs, arising or growing out of or in any way connected with the failure of the Developer or the Construction Manager to comply with (i) the provisions of the Redevelopment Agreement and the other related agreements, or (ii) the requirements of applicable law, with respect to contracts entered into for construction of the Section 380 Improvements. 8/6/01 17 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 7.6 On -Site Supervisors. Construction Manager will supervise the actual construction work in accordance with accepted industry practices. 7.7 Proiect Manager. Construction Manager agrees that it will provide for the Project the services of a duly qualified project manager, who . shall be required full time, to perform the services contemplated herein. The services of the project manager shall be provided to City without any additional fee. 7.8 Inspections. Construction Manager, in conjunction with the third party Construction Inspector and appropriate Building Department Personnel will inspect the Section 380 Improvements as the Work progresses and will keep City advised as to such progress and will give such general supervision and management as may be required to assure the construction and completion of the Section 380 Improvements in an efficient and workmanlike manner and in compliance with the Approved Plans and the building and other applicable laws and regulations of City. 7.9 Books and Records. Construction Manager will set up and maintain in its office at the site, at its own cost, a complete set of books for the construction of the Section 380 Improvements. Construction Manager shall at City's request make all said books as well as all other records pertaining to the Project available for City's inspection at the offices of Construction Manager. At the completion of the Project, City's City Manager (on behalf of City) and Construction Manager will jointly review and obtain an independent audit by a mutually agreed-upon outside auditor of the books and records for the construction of the Section 380 Improvements to confirm the reimbursable nature of expenditures made in connection with the Section 380 Improvements under this Agreement. 7.10 Insurance. (a) General: Except as otherwise specified in this Agreement, the Construction Manager and any subcontractors of any tier will be required at their own expense to maintain in effect at all times during the performance of the work insurance coverages with limits not less than those set forth below with insurers and under forms of policies satisfactory to the City of Grapevine. It shall be the responsibility of the Construction Manager and any subcontractors to maintain adequate insurance coverages and to assure that all subcontractors are adequately insured at all times. Failure of the Construction Manager and any subcontractors to maintain adequate coverage shall not relieve him of any contractual responsibility or obligation. (b) Certificate of Insurance: At the time of the execution of this Agreement and each subcontract, but in any event, prior to commencing work at the job site, the Construction Manager and his subcontractors shall furnish the City of Grapevine with certificates of insurance as evidence that the policies providing the required coverages and limits of insurance are in full force and effect. The certificates 816101 W.* 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 of insurance shall state the City and the United States Army Corps of Engineers (COE) as an additional insured where applicable. The certificates shall provide that any company issuing an insurance policy for the work under this contract shall provide not less than 30 -days advance notice in writing of cancellation, non -renewal, or material change in the policy of insurance. In addition, the Construction Manager shall immediately provide written notice to the City of Grapevine upon receipt of notice of cancellation of an insurance policy or a decision to terminate or alter any insurance policy. All certificates of insurance shall clearly state that all applicable requirements have been satisfied including certification that the policies are of the "occurrence" type. Certificates of insurance for Construction Manager and subcontractors -furnished insurance and notices of any cancellations, terminations, or alterations of such policies shall be mailed to Risk Management, City of Grapevine, P.O. Box 95104, Grapevine, TX 76099. (c) Worker's Compensation and Employers' Liability: This insurance shall protect the Construction Manager and his subcontractors and the additional insured against all claims under applicable state workers' compensation laws. The insured shall also be protected against claims for injury, disease, or death of employees which, for any reason, may not fall within the provision of a workers' compensation law. This policy shall include an all -states endorsement. The liability limits shall not be less than: Workers' Compensation Statutory Employers' Liability $5005000 (d) Rule 28 TAC 110.110: Rule 28 TAC 110.110 relating to REPORTING REQUIREMENTS FOR BUILDING OR CONSTRUCTION PROJECTS FOR GOVERNMENTAL ENTITIES; must be included in specifications for all building or construction contracts. (e) Comprehensive General Liability: This insurance shall be an occurrence type policy written in comprehensive form and shall protect the engineer and his subcontractors and the additional insureds against all claims arising from bodily injury sickness, disease or death of any person other than the Engineer's employees or damage to property of the City of Grapevine or others arising out of the act or omission of the engineer or his subcontractor or their agents, employees, or subcontractors. This policy shall also include protection against claims insured by usual personal injury liability coverage, a (protective liability) endorsement to insure the contractual liability, assumed by the Construction Manager and his subcontractors under the article entitled indemnification and completed operations, products liability, contractual liability, broad form property coverage, xcu, premises/operations, and independent contractors. 8/6/01 19 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 $ 1,000,000 per occurrence Property Damage $ 2,000,000 aggregate (f) Comprehensive Automobile Liability: This insurance shall be written in the comprehensive form and shall protect the provider, the Construction Manager and his subcontractors and the additional insured against all claims for injuries to members of the public and damage to property of others arising from the use of motor vehicles, and shall cover operation on and off the site of all motor vehicles licensed for highway use, whether they are owned, non -owned, or hired. The liability shall not be less than: Bodily Injury Property Damage $ 1,000,000 Combined Single Limit (g) Indemnification: For the consideration included in the bid price, Construction Manager and his subcontractors shall pay, indemnify, and save harmless the City, its agents, guests, consultants, (including the Engineer), officers, invitees, and employees, from all suits, actions, claims, demands, damages, losses, expenses, including attorney's fees, costs and judgements of every kind and description to which the City, its agents, guests, consultants (including the Engineer), officers, invitees, or employees may be subjected to by reason of injury to persons or death or property damage, resulting from or growing out of any act of commission, omission, negligence or fault of the Construction Manager and his subcontractors, their agents or employees, committed in connection with this contract, Construction Manager's performance hereof, or any work performed hereunder. Construction Manager and his subcontractors shall indemnify and save harmless the City, its agents, officers, or employees and consultants (including the Engineer), from and against all claims, demands, actions, suits, damages, losses, expenses, cots including attorney's fees, and judgements of every kind and description arising from, based upon, or growing out of the violation of any federal, state, county, or city law, bylaw, ordinance or regulation by the Construction Manager, its agents, trainees, invitees, servants, and employees. (h) Waiver of Subrogation: The Construction Manager and his subcontractors shall require their insurance carrier, with respect to all insurance policies, to waive all rights of subrogation against the City of Grapevine, its commissioners, partners, officials, directors, officers, agents, and employees and against all other contractors and subcontractors. 7.11 Indemnification and Hold Harmless.— Land under COE Jurisdiction Developer shall Indemnify and Hold Harmless the City of Grapevine and the United States Army Corps of Engineers from and against any and all claims, demands, damages, expenses, fines, penalties, suits, proceedings, actions and causes of any and every kind and nature, including reasonable attorneys' fees and court costs, arising or growing out of or in any way connected with Developers occupation of Section 380 8/6/01 20 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 Facilities, and will reimburse the City and COE on demand for any monies which City and COE is required to pay in connection with any claims or litigation arising out of Developer's occupation of Section 380 Facilities, and will assume the defense of any judicial action that might arise in connection with any of such matters ARTICLE Vill. AUTHORITY 8.1 Actions. The City covenants to Developer and agrees that upon application of Developer, the City will use its best efforts to the extent permitted by law to take such actions as may be required and necessary to process any amendments, variations, special use approvals and permit applications relating to the Zoning Ordinance and the City's other ordinances, codes and regulations, as may be necessary or proper in order to insure the development of the Property and the Project in accordance with the Project Plan, this Agreement and the Concept Plan and to enable the City to execute this Agreement and to carry out fully and perform the terms, covenants, agreements, duties and obligations on its pact to be kept and performed as provided by the terms and provisions hereof. 8.2. Powers. (a) The City hereby represents and warrants to Developer that the City has full constitutional and lawful right, power and authority, under currently applicable law, to execute and deliver and perform the terms and obligation of this Agreement, and all of the foregoing have been or will be duly and validly authorized and approved by all necessary City proceedings, findings and actions. Accordingly, this Agreement constitutes the legal, valid and binding obligation of the City, is enforceable in accordance with its terms and provisions and does not require the consent of any other governmental authority. (b) Developer hereby represents and warrants to the City that Developer has full lawful right, power and authority to execute and deliver and perform the terms and obligations of this Agreement and all of the foregoing have been or will be duly and validly authorized and approved by all necessary actions of Developer. Concurrently with Developer's execution of this Agreement, Developer has delivered to the City copies of the resolutions or other corporate actions authorizing the execution of this Agreement and evidencing the authority of the persons signing this Agreement on behalf of Developer to do so. Accordingly, this Agreement constitutes the legal, valid and binding obligation of Developer, and is enforceable in accordance with its terms and provisions. 8.3. Authorized Parties. Whenever under the provisions of this Agreement and other related documents and instruments or any supplemental agreements, any request, demand, approval, notice or consent of the City or Developer is required, or the City or Developer is required to agree or to take some action at the request of the other, a 8/6/01 21 0:\STAN\GAYLORD\AGREEMNnDRAFTDEV6 REVISION3 8-6-01 such request, demand, approval, notice or consent, or agreement shall be given for the City, unless otherwise provided herein, by the City Mayor or his designee and for Developer by any officer of Developer so authorized (and, in any event, the officers executing this Agreement are so authorized); and any Party shall be authorized to act on any such request, demand, approval, notice or consent, or agreement. ARTICLE IX. MUNICIPAL SALES AND USE TAX All construction contracts comprising the Project shall require that the respective contractor enter into a separated contract with the State of Texas for the purpose of Sales Tax Collection on eligible project costs in accordance with Texas Tax Code Secs. 151.056, 151.311 and 321.208. GENERAL PROVISIONS 10.1. Time of Essence. Time is of the essence of this Agreement. The Parties will make every reasonable effort to expedite the subject matters hereof and acknowledge that the successful performance of this Agreement requires their continued cooperation. All dates and time periods provided for in this Agreement shall be delayed during any pending or threatened litigation that would affect the ability to issue the City Instrument, acquire the Property or commence or continue with construction of the Public and Section 380 Improvements or the Project, for a time period equal to the duration of such litigation. 10.2. Default. (a) A Party shall be deemed in default under this Agreement (which shall be deemed a breach hereunder) if such Party fails to materially perform, observe or comply with any of its covenants, agreements or obligations hereunder or breaches or violates any of its representations contained in this Agreement. (b) Before any failure of any Party to this Agreement to perform its obligations under this Agreement shall be deemed to be a breach of this Agreement, the Party claiming such failure shall notify, in writing, the Party alleged to have failed to perform of the alleged failure and shall demand performance. No breach of this Agreement may be found to have occurred if performance has commenced to the reasonable satisfaction of the complaining Party within thirty (30) days of the receipt of such notice, subject, however, to the terms and provisions of Section 10.2(c). Upon a breach of this Agreement, the non -defaulting Party, in any court of competent jurisdiction, by an action or proceeding at law or in equity, may secure the specific 8/6/01 22 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 performance of the covenants and agreements herein contained, may be awarded damages for failure of performance, or both; provided, however, that notwithstanding the forgoing to the contrary and except as set forth in Section 5.3 of this Agreement, in the event that Developer delivers the notice provided for in Section 5.4 of this Agreement, Developer shall indemnify and make whole the City for any outstanding bonded indebtedness or other expense of the City related to the, Project for Public and Section 380 Improvements in the event the Project is not completed pursuant to a schedule mutually agreed upon by the City and Developer. Except as otherwise set forth herein, no action taken by a Party pursuant to the provisions of this Section 10.2 or pursuant to the provisions of any other Section of this Agreement shall be deemed to constitute an election of remedies and all remedies set forth in this Agreement shall be cumulative and non-exclusive of any other remedy either set forth herein or available to any Party at law or in equity. Each of the Parties shall have the affirmative obligation to mitigate its damages in the event of a default by the other Party. (c) Notwithstanding anything in this Agreement which is or may appear to be to the contrary, if the performance of any covenant or obligation to be performed hereunder by any Party is delayed as a result of circumstances which are beyond the reasonable control of such Party (which circumstances may include, without limitation, pending or threatened litigation, act of God, war, acts of civil disobedience, fire or other casualty, shortage of materials, adverse weather conditions (such as, by way of illustration and not limitation, severe rain storms or below freezing temperatures, or tornadoes, labor action, strikes or similar acts) the time for such performance shall be extended by the amount of time of such delay. The Party claiming delay of performance as a result of any of the foregoing "force majeure" events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than seven (7) days after the claiming Party becomes aware of the same, and if the claiming Party fails to so notify the other Party of the occurrence of a "force majeure" event causing such delay, the claiming Party shall not be entitled to avail itself of the provisions for the extension of performance contained in this Section 10.2c. (d) In addition to any other right or remedy available to Developer pursuant to this Agreement, in the event of a material breach by the City under this Agreement which continues for thirty (30) day after written notice to the City thereof and the City's failure to cure or diligently proceed to cure such breach to Developer's reasonable satisfaction, Developer shall have the right (but not the obligation), in its sole discretion, to exercise its right under the assignment(s) referenced in Section 4.5, to cause completion of construction of any improvement which the City is failing to timely undertake or complete and, to the maximum extent permitted by law, to use in connection therewith the proceeds of the City Instrument and any other funds available under this Agreement, and if Developer exercises such rights and undertakes or completes such construction, the City, upon receipt of notice therefor from Developer, shall fully reimburse Developer for all costs Developer incurs to undertake or complete such construction which have not then been paid for with the proceeds of the City Instrument and other funds available under this Agreement. 8/6101 23 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 sl >r 10.3 Amendment. This Agreement, and any exhibits attached hereto, may be amended only by the mutual agreement of the Parties evidenced by a written amendment, by the adoption of an ordinance or resolution of the City approving such written amendment, as provided by law, and by the execution of such written amendment by the Parties or their successors in interest. 10.4 Entire Agreement. This Agreement (including all Exhibits attached to this Agreement) sets forth all agreements, understandings and covenants between and among the Parties relative to the matters herein contained. This Agreement supercedes all prior agreements, negotiations and understandings, written and oral, and shall be deemed a full integration of the entire agreement of the Parties. 10.5 Severability. If any provision, covenant, agreement or portion of this Agreement, or its application to any person, entity or property, is held invalid, such invalidity shall not affect the application or validity of any other provisions, covenants, agreements or portions of this Agreement and, to that end, all provisions, covenants, agreements or portions of this Agreement are declared to be serverable. 10.6 Texas Law. This Agreement shall be construed in accordance with the laws of the State of Texas, and any actions concerning this Agreement shall be brought in either the Texas State District Courts of Tarrant County, Texas or the United States District Court for the Northern District of Texas. 10.7 Notice. Any notice to be given or served hereunder or under any document or instrument executed pursuant hereto shall be in writing and shall be (i) delivered personally, with a receipt requested therefor, or (ii) sent by telecopy facsimile; or (iii) sent by a nationally recognized overnight courier service; or (iv) delivered by United States registered or certified mail, return receipt requested, postage prepaid. All notices shall be addressed to the Parties at their respective addresses set forth below, and shall be effective (a) upon receipt or refusal if delivered personally or by telecopy facsimile; (b) one (1) business day after depositing with such an overnight courier service or (c) two (2) business days after deposit in the United States mails, if mailed. A Party may change its address for receipt of notices by service of a notice of such change in accordance with this Section 10.7. All notices by telecopy facsimile shall be subsequently confirmed by U.S. certified or registered mail, return receipt requested. If to the City: City of Grapevine 200 South. Main Street P. O. Box 95104 Grapevine, Texas 76099 Attn: City Manager Fax No.: (817) 410-3002 with a copy to: 8/6/01 M 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6 REVISION3 8-6-01 John F. Boyle, Jr. Boyle & Lowry, L.L.P. 4201 Wingren, Suite 108 Irving, Texas 75062-2763 Fax No.: 972-650-7105 If to Developer: Opryland Hotel, — Texas Limited Partnership 535 Marriott Drive Suite 600 Nashville, TN 37214 Attn: President Lodging Group With a copy to: Sherrard & Roe, P.L.C. 424 Church Street Suite 2000 Nashville, TN 37219 Attn: Kim A. Brown, Esq. 10.8. Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same agreement. 10.9. No Recordation. The Parties agree that this Agreement may not and shall not be recorded without the prior written consent of Developer. 10.10. Consent or Approval. Except as otherwise provided in this Agreement, whenever consent or approval of either Party is required, such consent or approval shall not be unreasonably withheld. 10.11. Term of Agreement. The term of this Agreement shall commence on the date first above written and shall continue until the date (the "Termination Date") which is the earlier of (x) the completion of the Project and the payment to Developer of all costs Developer has incurred for eligible Project Costs, and (y) December 31, 2002 unless otherwise extended by the Parties. 10.12. Interpretation. This Agreement has been jointly negotiated by the Parties and shall not be construed against a Party because that Party may have primarily assumed responsibility for the drafting of this Agreement. 10.13. Exhibits. All exhibits attached hereto are declared to be a part of this Agreement and are incorporated herein by this reference. 8/6/01 25 0:\STAN\GAYLORD\AGREEMNT\DRAFTDEV6-REVISION3-8-6-01 ti IN WITNESS WHEREOF, the City Council of the City of Grapevine, Texas, and the Board of Opryland Hotel — Texas Limited Partnership have authorized and caused this Redevelopment Agreement to be executed and delivered on this the day of ,2001. ATTEST: THE CITY OF GRAPEVINE, TEXAS BY: TITLE: OPRYLAND HOTEL —TEXAS LIMITED PARTNERSHIP By: Opryland Hospitality, Inc., General Partner By: _ Title: 816/01 26 0:\STAN\GAYLORD\AGREEMNT\DRAFrDEV6-REVISION3-8-6-01 i � EXHIBIT A-1 METES AND BOUNDS DESCRIPTION OF REINVESTMENT ZONE # 2 EXHIBIT A-2 DEPICTION OF METES AND BOUNDS DESCRIPTION OF REINVESTMENT ZONE # 2 EXHIBIT B METES AND BOUNDS DESCRIPTION OF REDEVELOPMENT SITE # 1 EXHIBIT C LIST OF PUBLIC IMPROVEMENTS & SECTION 380 IMPROVEMENTS EXHIBIT D PROJECT BUDGET OF PUBLIC IMPROVEMENTS AND SECTION 380 IMPROVEMENTS EXHIBIT E CITY COUNCIL RESOLUTION 2001-29 8/6/01 27 0:\STAN\GAYLORD\AGREEMNT\DRAF'DEV6_REV I S I O N 3_8-6-01 fs 4") DESCRIPTION OF TIF DISTRICT BOUNDARY BEING A 121.817 ACRE TRACT OF LAND SITUATED IN THE G.F. MARTIN SURVEY, A-1003, A. ANDERSON SURVEY, A-26, W.P. HERRING SURVEY, A-664, W.K. PAYNE SURVEY, A-1211, SAMUEL FREEMAN SURVEY, A-526, A.F. LEONARD SURVEY, A- 946, T. MAHAN SURVEY, A-1050, CITY OF GRAPEVINE, TARRANT COUNTY, TEXAS AND BEING ALL OF A 52.254 ACRE TRACT OF LAND DESCRIBED IN DEED TO BAJA DEVELOPMENT CORPORATION RECORDED IN VOLUME 11236, PAGE 937 OF THE DEED RECORDS OF TARRANT COUNTY, TEXAS (D.R.T.C.T.), ALL OF A 20.566 ACRE TRACT CONVEYED TO GRAPEVINE-COLLEYVILLE INDEPENDENT SCHOOL DISTRICT BY DEED RECORDED UNDER COUNTY CLERK'S FILE NO. D198190528 D.R.T.C.T., AND BEING A PORTION OF THE FOLLOWING TRACTS OF LAND: THE UNITED STATES OF AMERICA CORPS OF ENGINEERS TRACT NO. A -2A RECORDED IN VOLUME 2026, PAGE 163 D.R.T.C.T., A 28.6448 ACRE TRACT OF LAND CONVEYED TO R. TED ENLOE BY DEED RECORDED IN VOLUME 6948, PAGE 1618 D.R.T.C.T., THE RIGHT-OF-WAY OF STATE HIGHWAY NO. 26, A 29.896 ACRE TRACT CONVEYED TO ROBERT W. BRUNSON AND KATHLEEN A. BRUNSON BY DEED RECORDED IN VOLUME 11114, PAGE 1113 D.R.T.C.T., LOT 8, WATSON ADDITION AS RECORDED IN VOL. 388-9, PAGE 55 D.R.T.C.T, LOT 7, WATSON ADDITION CONVEYED TO JIMMY DEAN GREMMINGER BY DEED RECORDED UNDER COUNTY CLERK'S FILE NO. D 197177651 D.R.T.C.T., A 0.991 ACRES TRACT DESCRIBED IN AFFIDAVIT RECORDED UNDER COUNTY CLERK'S FILE NO. D198253252 D.R.T.C.T., A 463.63 SQUARE FOOT TRACT OF LAND CONVEYED TO THE STATE OF TEXAS BY DEED RECORDED UNDER COUNTY CLERK'S FILE NO. D197099180 D.R.T.C.T., TRACT 5 CONVEYED TO TRIMTY/TARRANT PARTNERS, LTD BY DEED RECORDy UNDER COUNTY CLERK'S FILE NO. DI 97128889 D.R.T.C.T., TURNER ROAD RIGHT- OF-WAY, LOT 1, BLOCK I COBBLESTONE VILLAGE ADDITION DESCRIBED IN DEED RECORDED IN VOLUME 0166, PAGE 51 D.R.T.C.T., TRACT 2 CONVEYED TO CATHERINE VERBURG BY DEED RECORDED IN VOLUME 11393, PAGE 0691, D.R.T.C.T., TRACT A CONVEYED TO CAPITOL CONCEPTS PROPERTIES 82-2 BY DEED RECORDED IN VOLUME 83016, PAGE 2529 D.R.T.C.T., WILDWOOD LANE, A 0.288 ACRE TRACT CONVEYED TO RICHARD E. WALTHER AND WIFE VIOLA E. WALTHER BY DEED RECORDED IN VOLUME 8287, PAGE 823 D.R.T.C.T., THE UNITED STATES OF AMERICA CORPS OF ENGINEERS TRACT NO. A-20 RECORDED IN VOLUME 2397, PAGE 121 D.R.T.C.T. AND THE UNITED STATES OF AMERICA CORPS OF ENGINEERS TRACT NO. A -22A RECORDED IN VOLUME 2296, PAGE 472 D.R.T.C.T.. BEARINGS ARE NAD -83 GRID, TEXAS NORTH CENTRAL ZONE, BASED ON GPS OBSERVATIONS OF THE CITY OF GRAPEVINE HORIZONTAL CONTROL MONUMENTS NO. 1, NO. 2, NO. 5 AND NO. 7. SAID 121.817 ACRE TRACT BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: PAGE I OF 7 1:\SLTR\98220901\SDATA\nF.FNS December 2, 1998 EXHIBIT A-1 BEGINNING AT CORPS MONUMENT W/ BRASS CAP STAMPED "A 54-1963" FOUND MARKING THE NORTHWESTERLY INTERIOR CORNER OF SAID 52.254 ACRE - TRACT, COMMON WITH AN EXTERIOR CORNER OF SAID CORPS TRACT NO. A -2A AND BEING ON THE APPROXIMATE WEST LINE OF THE SAID G.F. MARTIN SURVEY, COMMON WITH THE EAST LINE OF THE SAID SAMUEL FREEMAN SURVEY; THENCE WITH THE COMMON LINES OF SAID 52.254 ACRE TRACT AND SAID TRACT NO. A -2A THE FOLLOWING CALLS: N 00-29'53" W, A DISTANCE OF 574.09 FEET TO A POINT FOR CORNER; N 28-3 1'45" E, A DISTANCE OF 115.85 FEET TO A POINT FOR CORNER; N 76-37-11 " E, A DISTANCE OF 168.68 FEET TO A 1/2" IRON ROD FOUND; S 01 -26'40" E, A DISTANCE OF 468.47 FEET TO A CORPS MONUMENT W/PK NAIL FOUND; N 89-43'23" E, A DISTANCE OF 303.81 FEET TO A CORPS MONUMENT W/ BRASS CAP STAMPED "A 49-1963" FOUND; THENCE S 13 042'55" E, CROSSING SAID TRACT NO. A -2A, A DISTANCE OF 1399.88 FEET TO A CORPS MONUMENT W/ BRASS CAP STAMPED "A 46-1963" FOUND; THENCE CROSSING SAID CORPS TRACT NO. A -2A AND SAID 28.6448 ACRE TRACT THE FOLLOWING CALLS: S 01 °45'51" W, A DISTANCE OF 950.24 FEET TO A POINT FOR CORNER; S 36-54'57" E, A DISTANCE OF 655.56 FEET TO A POINT FOR CORNER; S 11 '47'23" W, A DISTANCE OF 128.35 FEET TO A POINT FOR CORNER; S 13 '24'58" E, A DISTANCE OF 537.43 FEET TO A POINT FOR CORNER; S 34-07'00" E, A DISTANCE OF 243.33 FEET TO A POINT FOR CORNER; ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 600.00 FEET, A DELTA ANGLE OF 34043'12", A LONG CHORD THAT BEARS S 17-56-33" E, A DISTANCE OF 358.05 FEET, AN ARC DISTANCE OF 363.59 FEET TO A POINT FOR CORNER; PAGE 2 OF 7 1:\SUR\9822090 I\SDATA\TIF.FNS December 2, 1998 S 00-34-55" E, A DISTANCE OF 221.43 FEET TO A POINT FOR CORNER, - di - b ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 550.00 FEET, A DELTA ANGLE OF 46°51'17", A LONG CHORD THAT BEARS S 24'00'34" E, A DISTANCE OF 437.34 FEET, AN ARC DISTANCE OF 449.77 FEET TO A POINT FOR CORNER; 1, S 47 °26'03" E, A DISTANCE OF 48.94 FEET TO A POINT FOR CORNER IN THE EXISTING RIGHT-OF-WAY OF STATE HIGHWAY NO. 26; THENCE ON OVER AND ACROSS SAID STATE HIGHWAY NO. 26 THE FOLLOWING CALLS: N 42-2 1'05" E, A DISTANCE OF 672.90 FEET TO A POINT FOR CORNER FROM WHICH A 1/2" CAPPED IRON ROD FOUND MARKED RLG BEARS N 37021'W 23.1 FEET; S 47'40'50" E, A DISTANCE OF 101.38 FEET TO A POINT FOR CORNER ON THE SOUTHEAST SIDE OF STATE HIGHWAY NO. 26; S 42-25-57" W, A DISTANCE OF 1391.77 FEET TO A POINT FOR CORNER ON THE SOUTHEAST SIDE OF STATE HIGHWAY NO. 26; N 47°39'07" W, A DISTANCE OF 99.41 FEET TO A POINT FOR CORNER FROM WHICH A 1/2"CAPPED IRON ROD FOUND MARKED RLG BEARS N 04032'W 31.6 FEET; N 42'21'05" E, A DISTANCE OF 618.81 FEET TO A POINT FOR CORNER; THENCE CROSSING SAID 28.6448 ACRE TRACT AND SAID CORPS TRACT NO. A -2A THE FOLLOWING CALLS: N 47025'37" W, A DISTANCE OF 49.31 FEET TO A POINT FOR CORNER; ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 650.00 FEET, A DELTA ANGLE OF 46051'14", A LONG CHORD THAT BEARS N 24'00'35" W, A DISTANCE OF 516.85 FEET, AN ARC DISTANCE OF 531.54 FEET TO A POINT FOR CORNER; N 00-34'56" W, A DISTANCE OF 221.43 FEET TO A POINT FOR CORNER; PAGE 3 OF 7 1:1S M9 822 090 1 �SDATAMFXNS December 2, 1998 ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 500.00 FEET, A DELTA ANGLE OF 34043'15", A LONG CHORD THAT BEARS N 17°5631" W, A DISTANCE OF 298.38 FEET, AN ARC DISTANCE OF 303.00 FEET TO A POINT FOR CORNER; N 34°48'02" W, A DISTANCE OF 220.63 FEET TO A POINT FOR CORNER; N 28°38'12" W, A DISTANCE OF 379.27 FEET TO A POINT FOR CORNER; N 41-59'57" W, A DISTANCE OF 744.79 FEET TO A POINT FOR CORNER; S 48°00'02" W, A DISTANCE OF 672.45 FEET TO A POINT FOR CORNER; THENCE S 00°31'49" E, ALSO CROSSING SAID 29.896 ACRE TRACT, A DISTANCE OF 3114.08 FEET A TO A POINT FOR CORNER IN STATE HIGHWAY NO. 26; THENCE ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 2149.19 FEET, A DELTA ANGLE OF 23 °43'36", A LONG CHORD THAT BEARS S 76°21'54" W, A DISTANCE OF 883.66 FEET, AN ARC DISTANCE OF 890.00 FEET TO A TO A POINT FOR CORNER IN STATE HIGHWAY NO. 26; THENCE S 89023'59" W, A DISTANCE OF 5295.16 FEET A TO A POINT FOR CORNER IN STATE HIGHWAY NO. 26; THENCE N 00°26'54" W, DEPARTING SAID HIGHWAY, A DISTANCE OF 347.33 FEET TO A "X" CUT FOUND MARKING AN INTERIOR CORNER OF SAID 20.566 ACRE SCHOOL DISTRICT TRACT; THENCE WITH THE PERIMETER OF SAID 20.566 ACRE SCHOOL DISTRICT TRACT THE FOLLOWING CALLS: N 89°37'45" W, COMMON WITH THE NORTH LINE OF LOT 1, BLOCK 1, DEAN/DAVIS ADDITION RECORDED IN CABINET A, SLIDE 1560 OF THE PLAT RECORDS OF TARRANT COUNTY, TEXAS (P.R.T.C.T.), A DISTANCE OF 162.71 FEET TO A 1/2" IRON ROD FOUND; S 00°28'17" E, CONTINUING WITH SAID LOT 1, A DISTANCE OF 32.93 FEET TO A "X" CUT FOUND; N 89°37'15" W, CONTINUING WITH SAID LOT 1 A DISTANCE OF 232.96 FEET TO A 3/4" IRON ROD FOUND; PAGE 4 OF 7 I:\S UR\9 8220901 \S DATA\TI F.FN S December 2, 1998 S 04-27'36" E, CONTINUING WITH SAID LOT I A DISTANCE OF 64.08 FEET TO A "X" CUT FOUND; N 56-50'58" W, COMMON WITH THE EASTERLY LINE OF THE W.C. LUCAS ADDITION AS RECORDED IN VOLUME 388-1, PAGE 81 P.R.T.C.T., A DISTANCE OF 223.21 FEET TO A 1/2" IRON ROD FOUND; I I N 00-47'04" W, CONTINUING WITH SAID LUCAS ADDITION, A DISTANCE OF 760.42 FEET TO A 5/8" IRON ROD FOUND IN SOUTH LINE OF HILLTOP DRIVE; N 89-17'22" E, ALONG HILLTOP DRIVE, A DISTANCE OF 50.00 FEET TO A 5/8" IRON ROD FOUND; N 00-47'46" W, ALONG HILLTOP DRIVE A DISTANCE OF 112.55 FEET TO A 1/2" IRON ROD FOUND; N 89-39'54" E, ALONG HILLTOP DRIVE A DISTANCE OF 100.03 FEET A TO A POINT FOR CORNER; N 00-58'54" W, ALONG HILLTOP DRIVE A DISTANCE OF 25.74 FEET A TO A POINT FOR CORNER IN THE SOUTH LINE OF GRAPEVINE HILLTOP APARTMENTS, LTD., AS RECORDED IN VOLUME 5319, PAGE 257 D.R.T.C.T.; N 89-11'14" E, A DISTANCE OF 569.27 FEET TO A P.K. NAIL FOUND MARKING THE MOST NORTHERLY NORTHEAST CORNER OF SAID SCHOOL DISTRICT 20.566 ACRE TRACT, COMMON WITH AN INTERIOR CORNER OF A 17.113 ACRE TRACT CONVEYED TO JOHN W. VILBIG, III BY DEED RECORDED IN VOLUME 5219, PAGE 277 D.R.T.C.T.; S 00-30'07" E, A DISTANCE OF 203.51 FEET A TO A POINT FOR CORNER, COMMON WITH THE SOUTHWEST CORNER OF A 0.954 ACRE TRACT CONVEYED TO MARY F. LABRECK BY DEED RECORDED IN VOLUME 4365, PAGE 732 D.R.T.C.T.; N 89-16'26" E, ALONG SOUTH LINE OF SAID 0.954 ACRE TRACT, A DISTANCE OF 211.83 FEET A TO A POINT FOR THE NORTHWEST CORNER OF LOT 1, BLOCK 1, THE STOREHOUSE ADDITION AS RECORDED IN VOLUME 388-153, PAGE 89 P.R.T.C.T.; S 00-40'10" E, ALONG THE WEST LINE OF SAID LOT 1, A DISTANCE OF 193.83 FEET A TO A POINT FOR CORNER; PAGE 5 OF 7 1:\SUR\98220901\SDATA\TlF.FNS December 2, 1998 S 89°41'05" E, ALONG THE SOUTH LINE OF SAID LOT 1, A DISTANCE OF 372.80 FEET TO A CAPPED IRON ROD FOUND MARKED AREA; S 00° 18'32" E, A DISTANCE OF 133.58 FEET TO A CAPPED IRON ROD MARKED LINDES FOUND MARKING THE NORTHEAST CORNER OF LOT 8, SAID WATSON ADDITION; , THENCE S 00020'27" E, DEPARTING SAID SCHOOL DISTRICT TRACT AND ALONG THE EAST LINE OF SAID LOT 8, A DISTANCE OF 280.99 FEET TO A CAPPED IRON ROD MARKED LINDES FOUND MARKING THE NORTHEAST CORNER OF LOT 7, WATSON ADDITION; THENCE S 00°22'21" E, ALONG THE EAST LINE OF SAID LOT 7 AND THE EAST LINE OF SAID 0.991 ACRE TRACT, A DISTANCE OF 170.83 FEET A TO A POINT FOR CORNER; THENCE S 88059'06" W, ALONG THE SOUTH LINE OF SAID 0.991 ACRE TRACT, COMMON WITH THE NORTH LINE OF LOT 1, BLOCK A, BILL MASSY FURNITURE CO., INC. ADDITION AS RECORDED IN VOLUME 388-158, PAGE 11 P.R.T.C.T., A DISTANCE OF 368.51 FEET TO A 5/8" IRON ROD FOUND MARKING THE SOUTHWEST CORNER OF SAID 0.991 ACRE TRACT AND BEING IN THE EAST LINE OF THE GROUP W CABLE ADDITION AS RECORDED IN VOLUME 399-205, PAGE 62 P.R.T.C.T.; THENCE N 00052'03" W, ALONG COMMON LINE OF SAID CABLE ADDITION AND SAID 0.991 ACRE TRACT, A DISTANCE OF 37.53 FEET TO A 1/2" IRON ROD FOUND MARKING A SOUTHEAST CORNER OF SAID SCHOOL DISTRICT TRACT; I THENCE S 89008'55" W, ALONG COMMON LINE OF SAID CABLE ADDITION AND SAID SCHOOL DISTRICT TRACT, A DISTANCE OF 302.64 FEET TO A 1/2" IRON ROD FOUND MARKING THE NORTHWEST CORNER OF SAID CABLE ADDITION AND BEING AN INTERIOR CORNER OF SAID SCHOOL DISTRICT TRACT; THENCE S 00027'52" E, ALONG THE WEST LINE OF SAID CABLE ADDITION, COMMON WITH AN EAST LINE OF SAID SCHOOL DISTRICT TRACT, A DISTANCE OF 325.97 FEET TO A POINT IN STATE HIGHWAY NO. 26; THENCE N 89023'59" E, A DISTANCE OF 5245.15 FEET TO A POINT IN STATE HIGHWAY NO. 26; THENCE ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 2148.19 FEET, A DELTA ANGLE OF 20049'45", A LONG CHORD THAT BEARS N 77°48'47" E, A DISTANCE OF 776.66 FEET, AN ARC DISTANCE OF 780.95 FEET TO A TO A POINT FOR CORNER IN STATE HIGHWAY NO. 26; PAGE 6 OF 7 I:\SUR\9822090 I \SDATA\TIF.FNS December 2, 1998 THENCE N 00°31'49" W, CROSSING SAID 463.63 SQUARE FOOT TRACT, SAID rs TRINITY/TARRANT PARTNERS, LTD. TRACT 5, TURNER ROAD, SAID LOT 1, BLOCK 1, COBBLESTONE VILLAGE ADDITION, SAID CATHERINE VERBURG TRACT 2, SAID WILDWOOD LANE, SAID 0.288 ACRE TRACT AND SAID CORPS TRACT NO. A-20, A DISTANCE OF 3720.54 FEET TO A POINT FOR CORNER; THENCE N 32008'40" W, A DISTANCE OF 145.44 FEET TO A 5/8" IRON ROD FOUND AT A POINT OF TANGENT IN THE SOUTHWESTERLY LINE OF SAID 52.254 ACRE TRACT; THENCE N 39032'14" W, WITH SAID SOUTHWESTERLY LINE, A DISTANCE OF 580.42 FEET TO A 5/8" IRON ROD FOUND FOR A WEST CORNER OF SAID 52.254 ACRE TRACT; THENCE N 03 03750" E, ALONG THE WEST LINE OF SAID 52.254 ACRE TRACT, A DISTANCE OF 309.48 FEET TO A POINT FOR CORNER; THENCE N 21019'56" W, CROSSING SAID CORPS TRACT NO. A -22A, A DISTANCE OF 259.51 FEET TO A POINT FOR CORNER; THENCE N 02 029'54" W, CROSSING SAID CORPS TRACT NO. A -22A, A DISTANCE OF 1156.92 FEET TO A POINT FOR CORNER; THENCE N 85 056'37" E, A DISTANCE OF 503.69 FEET TO THE POINT OF BEGINNING, AND CONTAINING 121.817 ACRES OF LAND, MORE OR LESS. DATE OF SURVEY: SEPTEMBER -NOVEMBER 1998 %C.SNI su- PAGE 7 OF 7 1:\SUR\98220901\SDATA\nF.FNS December 2, 1998 t>� I 3gt�, CALLED 20.54: ACRES CRM'EYK-COLLETWI.IE OCEPMNT SO4M DESTFjCT C.C. NO.- 0[9&90521 0R T C.T. W.C. LUCAS ADDITION PLAT RECORD VOL. 385-4 PG mi P.R.T.C.T. L49 Crw iDai I RAT }MTrypy�y L47 13.AT.L mt[ LAI _ m"O RAS AUIIES Aa« F. KS4 T LOT t-OAiGf. IT CA,.AlO A. I SACALS vt,clT-TT/cTciMAMT� I tPM LTD. 3 OXTLT. • _ Y ' 5 CATNtRVEABLM K M. L313. MOOS 6 N 76'37'11'E , CALLED aril ACRES LOT L.00s A atl WSxT . AOdiON 32 1AK1 I 103 L44 YAAT F'LtSQCA S0.. t3Ay M13i atitt�r.� T 1 Sz I �g g=I` i I i ( i i t e� 1 t g'Io SSI JE E�L CALLED SWE a cc -- O I 1 1 I I i L AV NT " wKw tcER cc NG- w"InST QATLT. uLLEn D.sS+oKT R.LLNN a soots t CC E. MA4T� TON OlLtGr. CITY d DRAPL1W ,-I C0. M TETA$ 9 COURSE TABLE LINE No. BEARING DISTANCE ttas�Ktttttt�t� COURSE TABLE LINE No. BEARING DISTANCE I CURVE No CA,.AlO A. I SACALS vt,clT-TT/cTciMAMT� I tPM LTD. 3 OXTLT. 4 5 CATNtRVEABLM K M. L313. MOOS 6 N 76'37'11'E 168.68' 32 1AK1 I S OI'26140'E 468.47' LAC�lt:S ! r,6 5 ltU _ r gq� TRACT A 11 ✓j] f4 y nAii lUK2 L i) �b �� 8 CA.R0. COiR.TS nvEATEs az•[ TAACi S tl 36 Y0..t�iLK.2S77 S 36'54'51'E ,% tE .. L51 ttas�Ktttttt�t� COURSE TABLE LINE No. BEARING DISTANCE I N 00'29'53'W 574.09' V0.. m+..Git3I OJLt Lt.S 30 2 N 28'31'45'E 85.85' 31 3 N 76'37'11'E 168.68' 32 4 S OI'26140'E 468.47' 33 5 N 89'43'23'E 303.81' 34 6 S 13'42'55'E 1399.88' 35 7 S 01'45'51'W 950.24' 36 8 S 36'54'51'E 655.56' 37 -9 S 11'47'23'W 128.35' 38 X 10 S 13'24'58'E S37.43'_.,._+,-.- 39 �T 8 S 34'07'00'E 243.33' I- 40 12 S 00'34'55'E 221.43'=gx 41 13 S 47'26'03'E 48.94' gats 42 14 N 42'21'05'E 672.90' 2" 43 15 S 47'40'50'E 101.38'_-= 44 16 S 42'25'57'W 1391.77' 7-h 45 17 N 47'39'07'W 99.41'46 18 N 42'21'05'E 618.81' iN 47 19 N 47'25'37'W 49.31' 48 20 N 00'34'56'W 221.43' 49 21 N 34'48'02'W 220.63' 1 50 22 N 28'38'12'W 379.27' 51 23 N 41'59'57'W 744.79' 52 24 S 48'00'02'W 672.45' I 53 25 S 00'31'49'E 384.08' 54 26 S 89'23'59'W 5295.16' I 55 27 N 00'26'54'W 347.33' 56 28 N 89'37'45'W 162.71' , 57 29 S 00'28'17'E 32.93' i 1 CURVE TABLE RADIUS ARC LENGTH DELTA 600.00' 363.59' , 34'43'12' 550.00' 449.77'; 46'51'17' 650.00' 531.54' 46' 51'14' 500.00' 303.00' ' 34'43'15' 2149.19' 890.00' 23'43'36' 2148,19' 780.95' 1 20'49'45' CKLEO 4J35 AUK tRACJ CALLED unt ACRES Muia E,SK i>EA awu - NOSCAT .Ll. It - - N'y�y�TT"��T'yyE,, .tG" It lTK pijy auOF FERTA" VCLi E.FKiNUI I I 6!1.71.7. Fa.aa VOL. pj%TRtLr. .aCALLED 44 AUK TRACT ' : ! �C, i [TR.tCT Mo. l•Ciil S0.. [1%..'C. iT[ M A TLtAtCYYTY'aurW I 6T. Y0.Ti TGR ,, I �. .-_L54Jr'6 �...�.. �.. �. LWO STATES OF YIEAKA • • ` COAs Or [IOEEAS 'Ta T 10..�T1�K0 / A 9•i S�A'i CPOI �N i' S'biT�niCt Mo 5724 T Rum WALL sT. '-_ CALLED PS.tSt ACRESi IITW LEEN LtTRMONtL-19 _ u (MLD STATES ? IEAS I za V0.. m+..Git3I OJLt Lt.S Cars Oi [TA.VtE/T3 i BRACT Nu l•TAt .. imj:,-,1.201 C4 N 89'37'15'W S 04'27'36'E N 561501581W N 00' 47'04'W N 89'17'22'E N 00'47'46'W N 89'39'54'E N 00'58'54'W N 8918141 S 00'30'07'E N 69'16'26'E S 00'40'10'E S 89'41'05'E S 00'18'32'E S 00'20'27'E S 00.22'21'E S 88'59106'W N 00'52'03'W S 891081551W S 00'2T'52'E N 89'23'59'E N 00'31'49'W N 32'08'40'W N 39'321141W N 03'37'50'E N 21'19'56'W N 02'29'54'E N 85'56'37'E CHORD 358.05' 437.34' 516.85' 298.38' 683.66' 776.66' PONT OF 9EGINNTNG _ BAJA DEYELOPEWNT CORP - \, CALLED 52.254 ACRE TRACT \ VOL. PC 0931 - .. '\ DJLT.C.T. T6 AREA t t2 "i -Arms i /•• tNttD STATES K AtAi p .O SWV� y FOL. TT1SL, M KT OJ f GT. tNTEO STATES OE AiEACA Cert O CN EAS VAACT -1-2Al S0.. MTS K KS OJT.i.Ct. L13 i \N� - a Tm [Ka CALLED Eta.[ AUK TRACT �� K� FDL. aTAt . KK i,�-.! i LT, wa��tars ot tiAAOi M. A-SAt VOL. 2PlC. 1G. RJ OAi i. 232.96' 64.08' 223.21' 760.42' 50.00' 112.55' 100.03' 25.74' 569.27' 203.51' 28.83' 193.83' 372.80' 133.58' 280.99' 170,83' 368.51' 37.53' 302.64' 325.97' 5245.15' 3720.54' 145.44' 580.42' 309.48' 259.51, 1156.92' 503.69' CHORD BEARING S 17'56'33'E S 24'00'34'E N 24'00'35'W N IT'56'31'W S 76' I'S4'W N 77'4'47'E S �LE,L EE+A n TWvET �. ��+Ei+Et I� X15 AST$f RAOT M. 2Z '" (��DW. TIF DISTRICT BOUNDARY EXHIBIT CITY OF GRAPEVINE • TARRANT COUNTY, TEXAS ..Ttt - EXHIB REINVESTMENT ZONE 149-71 L41 VOL 3 Lu� PATX-T.C.T. 1 ga'w` 'E ( 1 1 1 1 I I L47 CALLED 20.566 ACRES 1 GRAPEVINE-COLLEMLE WEPENDENT SCHOOL DISTRICT M C.C. N0.- Dt9Bt90S2t _ it 0DAYX.T. W.C. LUCAS ADDITION TRACT s 11 d PIAT RECORD VOL. SBC•I PO CI 1 PJt.TX-T. , Y • 1 �. L43 j D�tROCC:�_ L35 DRAPEV. i -I" L36 149-71 L41 VOL 3 Lu� PATX-T.C.T. 1 ga'w` 'E ( 1 1 1 1 I I L47 J ':LEO "J3 ACR.ES .Ja« DELTA 1 M Ai T.;"L 358.05' TRACT s 11 d I - 449.77' 46'51'17' , tuLED"'S1 ACRES BEARING L43 YMT I. L'aft" VO" .36L Kra LINE No. L44 DJLT.C.T. 1 N 00'29'53'W LOT L ROCK i It, STOWHOUSE AM 5 .ATSONAWT_ M0.. 311•f. PO. SS M0..31\-03. PQ PJLIX PAT,C.T. 2 AWT DEAN cRE1w,E11 OAt.C.T. CALLED 0.111 ACRES 31 RLLW1 LLW1N. SCRUCCS \ L SCAUOCS NNISM CC Ma: a042su" OAT.ET. N 76'37'11'E N J C5 CRY O ORAIKVNE TARRAM CONTT.TEKAS CALLEO L11 ACRES TRACT s TR04TT/TMRAJR PMt1fRS, LTO. tc Ra• OAT.1-TtT. CATHEAPC V"0-*' VOL1323. m 9 DAT C.T. CB J COURSE TABLE DELTA 1/d 1 swel 1 34'43'12' 358.05' TRACT s 11 d 550.00' CURVE No. RADIUS COURSE TABLE DELTA CHORD 1 COURSE TABLE 1 34'43'12' 358.05' 2 550.00' 449.77' 46'51'17' ri �Iitf LINE No. BEARING DISTANCE 46'51'14' LINE No. BEARING 500.00' 1 N 00'29'53'W 574.09' 5 30 N 89'37161W 23'43'36' 2 N 28'31'45'E 115.85' 780 95' 31 S 04'27'36'E 3 N 76'37'11'E 168.68' 1132 N 56'50'58'W 1 4 S 01'26'40'E 468.47' 33 N 00'47'04'W 5 N 89'43'23'E 303.81' 34 N 89'17'22'E 6 S 13'42'55'E 1399.88' 35 N 00'47'46'W 7 S 01'45'51'W 950.24' 36 N 89'39'54'E 8 S 36'54'57'E 655.56' 37 N 00'58'54'W 9 S II'47'23'W 128.35' 38 N 89'11'14'E _ 10 S 13'24'58'E 537.43',,,,, 39 S 00'30'07'E A°:'i°ra°,4 S 34'000'E6 243.33' 1. 40 N 89'16'26'E 12 S 00'34'55'E 221.43' 41 S 00'40'10'E 13 S 47'26'03'E 48.94' VPA" 42 S 89'41'05'E 14 N 42*21'051 672.90' !ig'}- 43 S 00'18'32'E 15 S 47'40'50'E 101.38'=�LLs 44 S 00'20'27'E 16 S 42'25'57'W 1391.77' < 45 S 00'22'21'E 17 N 47'39'07'W 99.41' "h 46 S 88'59'06'W 18 N 42'21'05'E 618.81' 1 47 N 00'52'03'W 19 N 47'25'3T'W 49.31' i 48 S 89'081551W 20 N 00'34'56'W 221.43' 49 S 00'27'52'E 21 N 34'48'02'W 220.63' 1 50 N 89'23'59'E 22 N 28'38'12'W 379.27' 51 N 00'31'49'W 23 N 41'59'5T4/ 744.79' 52 N 32'08'40'W 24 S 48'00'02'W ., 672.45' 1 53 N 39'32'14'W 25 S 00'31'49'E 3114.08' 54 N 03'37'50'E 26 S 89'23'59'W 5295.16' 1 55 N 21'19'56'1 27 N 00'26'54'W 347.33' i 56 N 02'29'54'E 28 N 89'37'45'W 162.71- 57 N 85'56'37'E 29 S 00'28'17'E 32.93' 1 CURVE TABLE CURVE No. RADIUS ARC LENGTH DELTA CHORD 1 600.00' 363.59' 34'43'12' 358.05' 2 550.00' 449.77' 46'51'17' 437.34' 3 650.00' 531.54' 46'51'14' 516.85' 4 500.00' 303.00' 34'43'15' 298.38' 5 2149.19' 890.00" 23'43'36' 883.66' 6 2148.19' 780 95' 1 20'49'45' 776 66' L51 RUTH WALL ST. -' -0 - : - � CALLED 1335 AM tRACTI I �$ _ GLLEO 021\ 1CAES RKIWaa,,ID L.AL TNEi1 aW (� ~'Y0. ROBERT lVM TL -T Mia BDNC 6M r TL U EO STATES OF AWRCA J Mbl.. 7QS. qiS 1 CONS OF ENGWERS ( .. 12tTE'P4R3MN ORT,O,T. -7 DATLT, RRACT Na A- CALLED Lt ACRE TRACT I I ! !/ 1 VOL ML M 412 OAT.L.T. A TEUS COS CpsMATgN L - MR•`oxT<Tcic I L54-/ L55 WTED STATES K AIERCA �••�••�••" '�. PONT OF tan a ENcxERs LTRAti Aq a-201 M0..S311 PG 41 �- A F l ORAgO SUq Y - SAMU .n�M NNtNG J igFENAN 5 RVET RUTH WALL ST. -' -0 - : - � CALLED 21.1]1 ACRES I �$ ROBERT .. BRIAf3pN RA7 N O�A<MSOM ;F E11TED STATES O< ASRIBCA 1 v 1 OAi.t.i. ya<< COWS OF E1.C.4ERS (TRADr No. a -2u ..K. PAYNfT SURVEY * i < VOL.20M M163 ABSiRAC NO. R1 pA,T.C.T. MRaL•A. �TO�EL\",'w Ici O.RT.CT. ..a-••-' 10 /1 fn 1 C4 2 . L13; 1 DISTANCE 232.96' 64.08' 223.21' 760.42' 50.00' 112.55' 100.03' 25.74' 569.27' 203.51' 211.83' 193.83' 372.80' 133.58' 280.99' 170.83' 368.51' 37.53' 302.64' 325.97' 5245.15' 3720.54' 145.44' 580.42' 309.48' 259.51' 1156.92' 503.69' CHORD BEARING S 17'56'33'E S 24'00'34'E N 24'00'35'W N 17'56'31'W S 7' '21'54'W N 77 48'47'E %.BTS1'RAti No. 14 �' A_r' RACT No_f. L1 S UEL FRCS N SUUaR EY BAJA DEVELOPEIENT CORP „� _ LT 'AB °stRiCi N t:T CALLED S2.2S4 ACRE TRACT VOL.Ir236.PC 093? - �.,` O.R.T.C.T. i 1 Ti AREA .121 BE�7%'AC�RES �' i• 1 LOOTED STATES RS OF A1[J1U p COO. E/CNEERs V (TRACT I A•EAJ VOL. 20M PC. 43 i OAT.C.T. 104110 STATES O< AYEpCA OWS V EMEJfER1 TTRAGT C 1-0. A•2 VOL. EDM S33 DAT _I. R TED DCOE CALL[MD MN/1 ACRE TRACT OL. D.R.t.CT. - &3?0W- .:_ - -- TIF DISTRICT BOUNDARY EXHIBIT CITY OF GRAPEVINE TARRANT COUNTY, TEXAS MRaL•A. �TO�EL\",'w Ici O.RT.CT. - &3?0W- .:_ - -- TIF DISTRICT BOUNDARY EXHIBIT CITY OF GRAPEVINE TARRANT COUNTY, TEXAS E y HI to C)rOj CO l / pZ�e � •%� ,p��� � f�.1'/ J itil�s•�1� j r-: REDEVELOPMENT ,�k p {• s a � i3 W nSITE •## • rn_ \ rca�� p0 � t•�� 'v :np�o \ all cv ti LnAll CI n N ^ Y CO IL to f ^ \ z w °tilt• �S Let, %dam •per• � u \� � °! h Ln rn 'tee i \ R .t tiZ <� l W V < Y c a 3 V35%\4 4 am nnn�� �U w ' 4C.JF.tjV ` oil o- z E 92 :mIT s � e a�! � � � !jr � @C ja Z—'�8t1 rih Vis= TC Tt +� T iiia 11 • !�' �� �� � '! j__ � III JH FN F-11 aFi! a s` =E xF�ppa _ x Ai R A t s it a�tZ !° 8�j A i� �! �� f•�� S: e� fp f—Ed= f y S S! f'� i'1 f d f�� S � l�11 � ��4�;=: a�FE •Z 4 �a a� x�ait -� =Z -y =Y" '�afia, xa, aa, R#:; c1�:� 2; A; A all a_ a_ Alt °t i Ai "U RBdt�tZalticg�� 8a Sgat�a 8aaai! aa�a�i! a! 8�z6a $x .«3kS�➢"a ca�5'Ah' :,k ;'x««x$« a:k*h«ka�kx y Y 4 Y Y\ Y Y Y Y Y y!!► y!!!\\►\! y! Y\ Y\ Y "dig 6�� �x&a��zaa`b��5ck�a s�RR'fs : : :.: « __ _ gcaazAx gxg�aaxa EXHIBIT Q LIST OF PUBLIC AND SECTION 380 IMPROVEMENT Public Improvements Roadways A, B, & C Bridge included in Roadway A Intersection Improvements, including traffic signals, at the Roadway A / SH 26 Intersection. Utility Facilities including water and wastewater lines, lift station, and associated facilities and appurtenances constructed in association with Roadways A, B & C.. Section 380 Improvements Mass Grading of the Hotel Site Roadway D, Excluding the Elevated Hotel Entry Drive Water and Wastewater Lines with Associated Appurtenances Constructed on Hotel Site including: 12" Water Line Looping the Site 8" Crossing Water Line Between Hotel & Support Bldg Fire Hydrants & Leads Fire Lines up to the Buildings Wastewater Lines & Manholes Serving the Site Public Parking Facilities consisting of : one (1) parking garage located beneath the Convention Center one (1) surface parking lot located north of the Hotel The Portion of the Convention Center that lies on Corps Land 0:\stan\gaylord\agreemnt\exhibitC—rev-8-6-01 I PROJECT BUDGET OF PUBLIC AND SECTION 380 IMPROVEMENTS PUBLIC IMPROVEMENTS Gaylord Trail with Bridge Roadway C 16" Water Line Ruth Wall Street Water and Wastewater Facilities Total SECTION 380 IMPROVEMENTS $ 7,241,533 $ 13,798,695 Parking Garage / Convention Center $ 14,087,367 North Parking Lot Water and Wastewater Lines Storm Drainage Lines Roadway D TOTALFUNDS TIF FUNDS ADDITIONAL FUNDS $ 27,886,062 $ 27,500,000 $ 386,062 0:\STAN\GAYLORD\AGREEMNT\EXHIBITD-REV8-6-01 RESOLUTION NO. 2001-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS ESTABLISHING COMPREHENSIVE POLICY STATEMENTS ON LOCAL ECONOMIC DEVELOPMENT AND BUSINESS INCENTIVES AND PROVIDING AN EFFECTIVE DATE I WHEREAS, Texas Local Government Code, Chapter 380 provides that a governing body of a municipality may establish and provide for the administration of one or more programs, including programs for the making of loans and grants of public money and providing personnel and services of the municipality, to promote state or local economic development and to stimulate business and commercial activity in the municipality; and WHEREAS, the Grapevine City Council wishes to establish an incentive program under Texas Local Government Code, Chapter 380 to provide a program that will encourage a company to locate within the' City and construct a "Destination Hotel and Convention Center"; and WHEREAS, guidelines for the new business incentives are outlined in Exhibit "A" attached; and WHEREAS, the incentives provide a procedure and method by which public improvements can be built utilizing expedited and concurrent bidding and construction procedures concurrently and simultaneously with construction of a "Destination Hotel and Convention Center". I NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That ail matters stated in the preamble are found to be true and correct and are herein incorporated into the body of this resolution as if copied in their entirety. Section 2. That the City Council hereby approves the Policy Statement on local economic development and business incentives attached hereto and labeled Exhibit "A". Section 3. That this resolution shall become effective immediately from and after its passage and approval by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 5th day of June, 2001. APPROVED: ell, William D. -Tate; Mayor ATTEST: C4 7) 4oC. �Brown� A��,sistant City Secretary APPROVED AS TO FORM: John F. Boyle, Jr.��� City Attorney RES. NO. 2001-29 2 EXHIBIT TO awl -y EXHIBIT A Page —L-- of.�. Chapter 380, Texas Local Government Code CITY OF GRAPEVINE POLICY STATEMNT ON LOCAL ECONOMIC DEVELOPMENT BUSINESS INCENTIVES FOR EXPEDITED AND CONCURRENT BIDDING AND CONSTRUCTION PROCEDURES The City of Grapevine is committed to the promotion of quality development and expansion of its existing business base. The City Council wishes to create an economic development policy program by creating incentives to remain competitive in the marketplace, as well as retain or increase high value inventories and acquire and install new equipment and other personal property in the City. Pursuant to this facet of the City's incentive package, the City of Grapevine will, on a case by case basis, give consideration to providing economic incentives to those corporate citizens meeting the guidelines contained in this document. It is the policy of the City of Grapevine that said consideration will be provided in accordance with the guidelines, criteria, and procedures outlined in this document. Nothing herein shall imply that the City is under any obligation to provide economic incentives to any requestor. Nothing herein shall prohibit the City Council from waiving or modifying the criteria to further the objectives of this policy. A. Threshold Requirements To Be Eligible for Expedited and Concurrent Bidding and C onstniction Procedures 1. Conditions and Requirements a) Any request for Expedited and Concurrent Bidding and Construction Procedure shall be reviewed by the City Council. All requests will be analyzed to determine the total revenue stream generated by the company, job creation, projected tourism, ad valorem, sales, liquor, franchise, and hotel taxes and cost of providing municipal services to the company's business. b) The threshold for consideration of granting Expedited and Concurrent Bidding and Constriction Procedure is an agreement to constrict a 1,500 room major project hotel and a convention center containing at least 350,000 square feet.(the Project, including both Public and Private improvements.) EXHIBIT TO 4---ea,�� r►. Page of c) The Applicant shall own the Project or have a new or renewable lease for a minimum of twenty (20) year term for a Project located in Grapevine. B. Basic Principles of Expedited and Concurrent Bidding and Constriction Procedures f In the event the applicant meets the threshold requirements and the City Council, solely at its discretion, approves the Project, the program, which shall be incorporated into an Agreement between Applicant and the City, shall include the following minimum requirements. 1. City shall review and approve all constriction plans, public and private, for compliance with appropriate City, State and Federal ordinances, resolutions, laws, and riles. 2. Applicant shall provide a construction schedule indicating the commencement and completion of the Project. 3. All contract documents between Applicant and its General Contractor for proposed Public Improvements shall be reviewed and approved by the City. 4. City shall review and be satisfied with insurance requirements which name City as additional insured and indemnities received from both the applicant and the general contractor. h 5. City shall review and approve amount of the bid for Public Improvements and the contract or contracts for the Public Improvements.. 6. City shall review and approve all bonding requirements, including performance, payment, and maintenance bonds or any proposed alternatives. City Attorney for City may request and receive a legal opinion from acceptable Texas counsel that the alternative form of insurance is customary and acceptable in the trade; that any alternative form of insurance in lieu of statutory Bonds are valid and provide at least the same protection for the City as the statutory performance, payment and maintenance bonds. 7. Both the City's regular Building Inspector and the City's special hotel/convention center Inspector shall review and approve all phases and aspects of constriction of the Public Improvements. 2 EXHIBIT iQ &&Do 9 ?a3e of 8. All requests for payment from the tax increment financing fund (TIF Funds) of the City and change orders shall be reviewed and approved by the City. 9. City shall be satisfied with the requirements i for as-builts, plans, lien releases and certifications as to payment of all subcontractors and materialmen as a condition for final payment for the Public Improvements. 10. City shall review the Project and be satisfied that all requirements of the contract documents have been satisfied as a condition for final payment and acceptance of the Project. 11. Applicant's general contractor and City shall meet on site on a regular basis to review constriction status of Project. 12. The parties shall develop an acceptable written procedure for communicating with Corps of Engineers. 13. City management, finance director and director of public works may impose additional reasonable requirements to be included within the Agreement to insure timely completion within the date of scheduled completion and within the budget. 3 CONSTRUCTION DEVELOPMENT AGREEMENT 61111011"AMENDMENT#1 THIS CONSTRUCTION DEVELOPMENT AGREEMENT (this "Agreement') is made as of , 2001 (the "Effective Date") by and between: (i) OPRYLAND HOTEL - TEXAS LIMITED PARTNERSHIP, a Delaware limited partnership ("Developer") and (ii) THE CITY OF GRAPEVINE, TEXAS (the "City"). The Developer and the City are referred to herein individually as a "Party" and collectively as the "Parties"), based upon the following Recitals. RECITALS: A. The Developer owns or leases certain parcels of real property containing approximately 53 acres of land located in the City of Grapevine, Texas, as more particularly described on Exhibit A attached hereto and made a part hereof (the "Project Parcel"). B. The Developer intends to construct upon the Project Parcel a 1,500 room destination convention center hotel with approximately 400,000 square feet of convention, meeting room and banquet facilities, parking facilities and related amenities (the "Project'). A conceptual site plan showing the proposed configuration of the Project and certain other improvements to be developed upon the Project Parcel is attached hereto and made a part hereof as Exhibit B (as the same may be modified from time to time, the "Site Plan"). C. In connection with the development of the Project, the City has agreed to cause to be constructed certain Infrastructure Improvements (defined below), including construction of certain roads, utility facilities, parking facilities, and landscaping upon the Project Parcel, all as more particularly set forth in this Agreement. NOW, THEREFORE, for and in consideration of the foregoing Recitals and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Parties hereto hereby agree as follows: Section 1. Recitals Incorporated. The Recitals set forth above are incorporated into this Agreement and shall be deemed terms and provisions hereof, the same as if fully set forth in this Section 1. Section 2. Certain Defined Terms. As used herein, the following terms shall have the respective meanings indicated below. "Affiliate" means, with respect to any Person: (i) a parent, spouse, child or sibling of such Person, or a trust, the primary beneficiary(ies) of which is such Person and/or the spouse, parents, siblings and/or children of such Person, and (ii) any other Person which controls, is controlled by or is under common control with the Person in question. "Applicable Laws" means all laws, ordinances, orders, rules, regulations, requirements or judicial decisions of any Governmental Authority which is at any time applicable to the Project Parcel or any of the Parties, including (without limitation) Environmental Laws. Such laws, ordinance, orders, rules, regulations shall include, without limitation, any of those which relate to zoning, land use, subdivision, public health, public 8/27/2001 11:56 AM o:\stan\gaylord\agreemnt\Construction_Development_Agmt_Rev_8-"1 safety, environmental protection, accessibility, the removal of architectural barriers and the existence or removal of any Hazardous Materials. "Bridge" means the bridge serving the main access road, Roadway A, for the Project, as depicted on the Site Plan. "Budget" means the proposed budget for the Infrastructure Improvements, a current copy of which is attached as Exhibit hereto, subject to modification from time to time by the Parties, with the Consent of the Parties and subject to Applicable Laws. "City" means the City of Grapevine, Texas, and all divisions, departments and agencies thereof. "Consent" means the prior written consent or approval of a Person to a thing or other action proposed by another Person, or the act of granting consent or approval to such thing or action, as the context may require. Reference to a requirement for the Consent of any Person shall require the commercially reasonable judgment of such Person and shall require that such Person shall not unreasonably withhold, delay or condition the Consent. "Costs" means all reasonable out-of-pocket costs, expenses, fees and charges incurred or paid by a Person in performing obligations or exercising rights hereunder. When either Parry (or its Affiliates) performs Work on behalf of another Party hereto and is entitled to reimbursement for such Work, the "Costs" subject to reimbursement shall also include a reasonable allocation of the overhead and administrative expenses of the Parry entitled to reimbursement. "County" means Tarrant County, Texas, and all divisions, departments and agencies thereof. "Designated Representative" means the individual(s) designated by each Party hereto, in writing, to represent such Parry in connection with all Consents, approvals and other discretionary matters under this Agreement. Until further notice from the Developer to the City, the Designated Representative(s) of the Developer shall be John Edwards and Pete Cesari. Until further notice from the City to the Developer, the Designated Representative(s) of the City shall be Scott Williams and Bruno Rumbelow. "Environmental Hazard" means the discovery in or upon the Project Parcel or any other applicable property of any Hazardous Material in violation of any Applicable Law, order or regulation. "Environmental Laws" means all current and future federal, state and local statutes, regulations, ordinances and rules relating to (1) the emission, discharge, release or threatened release of a Hazardous Material into the air, surface water, groundwater or land; (2) the manufacturing, processing, use, generation, treatment, storage, disposal, transportation, handling, removal, remediation or investigation of a Hazardous Material; or (3) the protection of human health, safety or the indoor or outdoor environmental, including without limitation, the Clean Air Act, the Federal Water Pollution Control Act, the Resource Conservation and Recovery Act, the Comprehensive Environmental Response, Compensation and Liability 8/27/2001 11:56 AM 2 o:\stan\gaylord\agreemnt\Construction_Development_Agmt_Rev_8-6-01 BM Act, the Occupational Safety and Health Act, all amendments thereto, all regulations ` promulgated thereunder, and their state, county and local statutory and regulatory counterparts. "Force Majeure" means strikes, condemnation, riots, insurrections, war, fire and other casualties, floods and acts of God, extraordinarily inclement weather not reasonably foreseeable by the Person responsible for a particular action, general unavailability of labor and/or materials, inability to obtain required Permits (except as a consequence of matters within the control of the Person responsible for a particular action) and other matters beyond the reasonable control of the Person responsible for a particular action; provided, however, that Force Majeure shall not include delays or interruptions resulting from the financial inability or lack of funds of the Person responsible for a particular action. Except as expressly provided herein to the contrary, whenever performance of any obligation or undertaking is required of any Party hereunder, then the time for performance as herein specified shall be extended by the time of the delay or interruption caused by Force Majeure; provided, however, that Force Majeure shall excuse performance of a particular undertaking or obligation arising hereunder only for so long as the Person responsible for such undertaking or performance is actually delayed by such Force Majeure and uses all commercially reasonable efforts to minimize the delay or interruption caused by such Force Majeure; and provided further that Force Majeure shall not excuse any Party from the prompt payment of any monies required by this or Agreement or extend the time for such payment. "Governmental Authority" means any federal, state, municipal or local "a governmental authority, agency or board or any division or agency thereof having jurisdiction over the Project Parcel or any aspect thereof, including (without limitation) the City, the County, the State, the U.S. Army Corps of Engineers and the Texas Natural Resources Conservation Commission. "Governmental Requirements" means those Applicable Laws which relate to the development, construction, occupancy or use of any portion of the Project Parcel or any other applicable property. "Hazardous Material" means any solid, liquid or gaseous substance, chemical, compound, project, by-product, waste or material that is or becomes regulated, defined or designated by any applicable federal, state or local governmental authority or by any Environmental Law as hazardous, extremely hazardous, imminently hazardous, dangerous or toxic, or as a pollutant or contaminant, and shall include, without limitation, asbestos, polychlorinated biphenyls, and oil, petroleum, petroleum products and petroleum by- products. Underground storage tanks that are regulated under any Environmental Laws also shall be deemed to be "Hazardous Materials" hereunder. "Infrastructure Improvements" means the publicly funded Infrastructure Improvements comprised of Public Improvements being constructed by the City and Section 380 Improvements being constructed by Developer as part of the Project, described in Exhibit D attached hereto. 8/27/2001 11:56 AM o:\stan\gaylord\agreemnt\Construction_Oevelopment Agmt_Rev_8-6-01 "Landscaping Improvements" means the customary seeding and sod installed by the City in connection with the Roadways, as set forth in Exhibit D hereto. "Parking Facilities" means the Convention Center parking garage, the north surface parking lot, and related facilities to be constructed by Developer as Section 380 Improvements, identified in Exhibit D, attached hereto. "Permits" means any and all permits, licenses, approvals, certificates of use and/or occupancy, authorizations, variances and consents of or from any Governmental Authority and required by Governmental Requirements. "Person" means any natural person, corporation, partnership, limited liability company, trust, firm, association or other recognized entity. "Plans and Specifications" means, with respect to any particular aspect of the Public Improvements Work and Section 380 Improvements Work, the plans and specifications for such Work, as approved by the Parties pursuant to this Agreement. "Project" means the construction and development of the hotel and convention center and related improvements on the Project Parcel as contemplated in this Agreement, including (without limitation) the Infrastructure Improvements Work. "Project Schedule" means the current updated Project Schedule for the Project, including the Public Improvements Work and Section 380 Improvements Work, as set forth in Exhibit E. "Public Improvements" means those Infrastructure Improvements bid, contracted for and constructed solely by the City in the course of normal operations, described in Exhibit D, attached hereto. "Public Improvements Work" means the Work and other undertakings to be performed by the City in constructing (or causing to be constructed) the Public Improvements in accordance with this Agreement. "Redevelopment Agreement" means the Redevelopment Agreement between the City and the Developer, dated as of 32001. "Roadways" means the roadways to be constructed upon the Project Parcel by the City, as generally depicted on the Site Plan and described in Exhibit D attached hereto, including the related drainage systems, roadway embankment, traffic signals, sidewalks, hike and bike trails, box culverts and related roadway lighting. "State" means the State of Texas and all divisions, departments and agencies thereof. 8/27/2001 11:56 AM o:\stan\gaylord\agreemnt\Construction_Development_Agmt_Rev_8-" I rd "Section 380 Improvements" means those Infrastructure Improvements authorized Mliffl as part of an Economic Development Program established by the City Council under Section 380 of the Texas Local Government Code, as described in Exhibit D, attached hereto. "Section 380 Improvements Work" means the Work and other undertakings to be performed by the Developer in constructing (or causing to be constructed) the Section 380 Improvements in accordance with this Agreement. "TIF Financing" means the proceeds of the Financing Plan undertaken by the City, pursuant to the Redevelopment Agreement between the City and the Developer, dated as of , 2002. "Utility Facilities" means the water and wastewater lines and associated facilities or appurtenances to be constructed and installed by the City as Public Improvements and by Developer as Section 380 Improvements, described in Exhibit D attached hereto. "Work" means any material construction, demolition, grading, installation of utilities and other physical appurtenances or other similar activities on or about the Project Parcel pursuant to this Agreement. Section 3. Infrastructure Improvements Work. The City shall perform, or cause to be performed the Public Improvements Work, in accordance with the Project Elements described in Exhibit D attached hereto, and other undertakings on and affecting the Project Parcel all in accordance with the approved Plans and substantially in accordance with the Project Schedule. The Developer shall perform, or cause to be performed the Section 380 Improvements Work, in accordance with the Project Elements described in Exhibit D attached hereto, and other undertakings on and affecting the Project Parcel all in accordance with the approved Plans and substantially in accordance with the Project Schedule. (a) Public Improvements. With respect to the Public Improvements to be completed by the City, the Work related to the Public Improvements shall be managed by the Developer, in accordance with Section 4. The City shall contract directly with the parties completing the Public Improvements. The City and the Developer shall be responsible for insuring completion of the Infrastructure Improvements, in accordance with the Budget and the Project Schedule. In the event that the City shall not have commenced construction of the Public Improvements in accordance with the Project Schedule or if the City commences the Public Improvements but thereafter fails to prosecute the completion thereof diligently, subject in each case to Force Majeure, then, to the extent Developer determines that the City's failure to prosecute the Work will result in a material delay in the Project Schedule, the Developer, following written notice to the City, shall have the right (but not the obligation) to enter upon the Project Parcel and to undertake such portions of the Public Improvements as determined by the Developer as necessary to complete the Public Improvements. In the event that the Developer shall so elect to undertake any portion of the Public Improvements, then the Developer shall provide at least thirty (30) days' prior written notice to the City of its intent to undertake the Public Improvements on the City's behalf and thereafter shall have the right to proceed with such Work unless the City, on or prior to expiration of said thirty (30) day 8/27/2001 11:56 AM o:\stan\gaylord\agreemnt\Construction—Development_Agmt—Rev-8-Mi period, shall commence or recommence (as the case may be) and thereafter continue the diligent prosecution of the completion of the Public Improvements in a manner reasonably satisfactory to the Developer to avoid a delay in the Project Schedule. Performance of the Public Improvements or any portion thereof by the Developer pursuant to this Section shall not relieve the City of its obligation to pay for such Work, and the City shall reimburse the Developer from the TIF Financing for all Costs so incurred by the Developer within ten (10) days of the Developer's demand (together with invoices or other reasonable supporting documentation). (b) Section 380 Improvements. With respect to completion of the Section 380 Improvements, the Developer shall be primarily responsible for managing the Work related to the Section 380 Improvements, pursuant to Section 4. The Contract and bid proposal for the Section 380 Improvements shall be coordinated directly through the Developer, subject to approval by the City and compliance with Applicable Laws. The Developer shall be responsible for scheduling the Work related to the Section 380 Improvements and managing the Work to insure completion of the Section 380 Improvements, in accordance with the Budget and the Project Schedule. The Developer and the City shall cooperate together, in good faith, to insure completion of the Section 380 Improvements, in accordance with the Project Schedule. Section 4. Construction Management. The Developer shall be the construction manager for the Project, including the Public Improvements Work and Section 380 Improvements Work. The Developer shall be compensated for such construction management services, in accordance with the terms of the Redevelopment Agreement. To the extent requested by the City, the Developer shall enter into a separate Construction Management Services Agreement. The Developer's obligations as the construction manager shall be to coordinate and oversee the general construction of the Project, including, without limitation, the Public Improvements Work and Section 380 Improvements Work. The City acknowledges that the Developer may contract with one or more professional companies to provide construction management support services. The Developer shall advise the City of any third parties that are providing construction management support services for the Developer. In no event shall the City have any obligation to pay any fees or expenses to such third parties. To the extent Developer engages such third parry services, Developer shall be responsible for costs and expenses paid to such third parties from the construction management fee paid to Developer, pursuant to the Redevelopment Agreement. Section 5. General Criteria for Performance of Work. All Work performed or required to be performed by or on behalf of the Parties pursuant to this Agreement shall be performed in a good and workmanlike manner and in compliance with all Applicable Laws and Governmental Requirements and in substantial conformity to the approved Plans and Specifications. All such Work will be performed in a manner consistent with the risk management standards and practices ordinarily observed by municipalities in the State and as contemplated by this Agreement. Except as expressly provided herein, the Party responsible for performing or causing the performance of any Work also shall be responsible for obtaining and maintaining all Permits that may be required for such Work, provided, however, each Parry shall cooperate and assist in the efforts to obtain such Permits, as may be reasonably requested by the Party responsible for same, including (without limitation) the prompt execution and delivery of any customary applications or other documents or information that may be reasonably required to obtain such Permit. Once commenced, any Work hereunder shall be diligently prosecuted to completion by the Party responsible for such Work, 8/27/2001 11:56 AM 6 o:\stan\gaylord\agreemnt\Construction_Development_Agmt_Rev_8-6-01 subject to Force Majeure. The responsibility of a Parry to perform any Work hereunder shall include �ry�,�' (without limitation), the obligations: (i) to perform all services and functions, including (without limitation) those specifically set forth herein, reasonably necessary or incidental to the construction and completion of such Work, (ii) to use all commercially reasonable efforts in the performance of such Work and to exercise professional competence with respect thereto, and (iii) to enter into any and all other agreements as such Party deems necessary for construction and completion of the Work; provided, however, notwithstanding the foregoing, no Party hereto shall have any right, power or authority to negotiate or execute any contracts or agreements or assume or create any liabilities or obligations on behalf of, or otherwise take any action binding upon any other Parry, except as expressly provided herein to the contrary. Subject to the terms hereof, the Parties shall cooperate (and cause their respective Affiliates to cooperate) in good faith to facilitate construction and completion of the Work and shall allow each other (and their respective contractors, consultants and agents) to have access to and inspect the performance of the Work, provided that such access and inspection shall not unreasonably interfere with or delay the performance of the Work. With respect to any and all Work performed hereunder, the Parties will provide to each other a list of the names and addresses of all Persons performing any of the Work on the Project Parcel, including contractors, subcontractors, suppliers, materialmen, engineers and architects, and all other information related thereto, as may be reasonably requested. (a) All Work performed under this Agreement by or on behalf of either Party shall be conducted in a manner that is intended to minimize interference with other development activities at the Project Parcel and shall be coordinated with the performance of the Work by the other Party so as to achieve the mutual goal of the timely completion of the ,. Public Improvements Work and Section 380 Improvements Work in accordance with the Project Schedule and at the Costs set forth in the Budget. Each Party shall inform the other promptly upon learning of any material deviation from the Budget. (b) The Public Improvements Work and Section 380 Improvements Work shall be scheduled and performed substantially in accordance with the Project Schedule and any phasing plan included as part of the Project Schedule, subject to Force Majeure, or as otherwise Consented to by the Parties. The Parties shall endeavor to keep each other well- informed with regard to the status of the Work performed hereunder, and any material delays in or deviations from the Project Schedule. A Party will not make or effect any material changes to the Project Schedule without obtaining the prior Consent of the other Party. (c) During performance of any Work pursuant to this Agreement, the Parties shall provide to each other, promptly upon receipt, copies of all formal notices received from any Governmental Authority having jurisdiction over the Project or from any insurance company insuring any aspect of the Project. (d) During performance of any Work pursuant to this Agreement, the Parties covenant and agree to maintain on-site, available for inspection and photocopying by each other, all Permits, contracts and plans and specifications for the Work performed hereunder. (e) Each Party, in connection with its efforts to obtain any material Permits required for the Work, shall allow the other Party to attend and monitor all formal meetings with the Governmental Authority(ies) having jurisdiction over such matters. Whether or not such other Party attends or monitors such meetings, the Parties shall endeavor to keep each 8/27/2001 11:66 AM 7 o:\stan\gaylord\agreemnt\Construction—Development_Agmt—Rev—M-01 other well informed of all formal meetings and other formal communications with Governmental Authorities having jurisdiction over the Work. (f) The Parties shall establish (by mutual Consent) and adhere to a schedule of periodic meetings to discuss and resolve issues pertaining to the Work performed hereunder, and each Party shall use all reasonable efforts to ensure that such meetings are attended by one or more of its Designated Representatives. (g) Developer acknowledges that all Work shall be subject to inspection and approval by the City, in accordance with its normal inspection procedures. The costs and expenses incurred in connection with such inspections shall be funded by the City from TIF Proceeds and the total costs related to the Project to be funded from the TIF Proceeds shall not exceed $250,000. Section 6. Preparation and Approval of Plans and Specifications.. The Public Improvements Work and Section 380 Improvements Work shall be completed substantially in accordance with the applicable Plans and Specifications, which shall be prepared, approved and modified in accordance with this Section. (a) Prior to commencing any Work hereunder, the Developer shall engage architects, engineers and other professionals as deemed necessary by the Developer to prepare preliminary plans, specifications and/or drawings for the applicable Work, in cooperation with the City and in accordance with mutually acceptable design and construction practices and in sufficient detail to allow a thorough and reasoned review thereof, and in compliance with the bid procedures required by Applicable Law (the "Preliminary Submission"). The Preliminary Submission prepared by or on behalf of the Developer shall be submitted to the City for review and comment. The City shall promptly review and approve or request additional information or changes with respect to the Plans and Specifications. With respect to Plans and Specifications completed for the Infrastructure Improvements, the general design, layout and location of the Infrastructure Improvements shall be subject to the final approval of the Developer. With respect to compliance with City specifications and requirements with respect to construction of the Roadways, the Bridge, or the related lighting, the City shall have final approval with respect to compliance with such specifications and regulations. With respect to Plans and Specifications completed for the Section 380 Improvements, the Developer shall have final approval with respect to all aspects of such Plans and Specifications, provided that the Developer shall consult with the City to insure compliance with all Applicable Laws and minimum City Standards. Upon final approval by the City and the Developer, as required by subsection 6(a), the Preliminary Submission shall be deemed the "Plans and Specifications" for the applicable portion of the Work. Developer and the City agree to cooperate, in good faith, to finalize and approve Plans and Specifications promptly to ensure completion of the Work within the timeframes set forth in the Project Schedule. (b) Once the Plans and Specifications are approved in accordance with this Agreement, no material changes shall be made thereto without the Consent of the Developer. If the City desires to modify any approved Plans and Specifications in any material respect, the City shall submit the proposed modification to the Developer for Consent. 8/27/2001 11:56 AM o:\stan\gaylord\agreemnt\Construction_Oevelopment_Agmt_Rev_M-01 (c) Once the Plans and Specifications for the Public Improvements are finalized and approved by the Developer, the Developer and the City shall cooperate to formulate bid packages for the Work, including pre -qualification standards and other procedures for the Section 380 Improvements to permit the Work related to the Public Improvements to be advertised for public bid by the City, in accordance with Applicable Law. Section 7. Cost of the Work. The Budget indicates the estimated Costs and, in specific instances, allocation of such Costs for particular aspects of the Public Improvements Work. The Budget is subject to change, subject to the public bid process for the Public Improvements Work. The Cost of the Public Improvements Work shall be paid from the TIF Financing in accordance with the Budget and Applicable Law. Section 8. Insurance. Each Party performing (or responsible for performing) any Work hereunder shall obtain and maintain (and shall cause any contractor or other entity performing such Work on behalf of such Party to obtain and maintain) policies of insurance covering the perils and in amounts which meet or exceed the minimum standards of the City for similar contracts, including coverage for Commercial General Liability, Automobile Liability, Workers' Compensation meeting Statutory limits mandated by applicable State and/or Federal Laws, Builders' Risk Insurance/Property Insurance on an all-risk policy form and insuring against the perils of fire and extended coverage and physical loss or damage including (without duplication of coverage) theft, vandalism, malicious mischief, collapse, debris removal and including contingent liability from Operation of Building Laws, Demolition and Increased Cost of Construction; in an amount equal to one hundred percent (100%) of the full replacement cost of the insured property. With respect to the Joint Improvements, the City and Developer agree that the insurance coverages during the construction period may be maintained through an owner -controlled insurance program implemented - by Developer, provided the coverages shall meet or exceed the minimum City requirements. All contractors, subcontractors and other third parties providing services in connection with the Project on behalf of the City (or the general contractor) shall maintain current certificates evidencing insurance coverages in compliance with the provisions of this Agreement or as otherwise approved by the Developer in writing. Prior to such entities commencing any work or providing any services at the Project, the City shall provide to the Developer's risk management representative a copy of such certificate which shall be in form and substance reasonably acceptable to the Developer. In addition, at least ten (10) days prior to expiration of any such coverages, the City shall cause replacement certificates to be supplied to Developer. All policies of Comprehensive General Liability, Automobile and Builders' Risk insurance required of any Party hereto, and each Parry's Umbrella/Excess Liability policy will name the other Party(ies), as their interests may appear, as additional named insureds with respect to all appropriate insurance coverages. All insurance provided for in this Section shall be obtained under valid and enforceable policies (the "Policies") issued by insurance companies licensed in the State of Texas (if applicable) and having a claims -paying rating of "A" or better and a financial class of "XV" or better as rated by AM Best Company, Inc. Not less than thirty (30) days prior to the expiration dates of the Policies, certified copies of the Policies marked "premium paid" or accompanied by reasonable evidence of payment of the premiums due thereunder shall be delivered by the Party required to obtain and maintain such Policies to each other Party; provided, however, that in the case of renewal Policies, the Party required to obtain same may furnish the other Parties with binders therefor to be followed by the original Policies when issued. Each Policy covering property damage shall be 8/27/2001 11:56 AM 9 o:\stan\gaylord\agreemnt\Construction_Development_Agmt_Rev_M-01 primary and non-contributory. All Policies shall contain clauses or endorsements to the effect that (i) no act or negligence of the insured Party or anyone acting for the insured Party, or failure to comply with the provisions of such Policy which might otherwise result in a forfeiture of the insurance of any part thereof, shall in any way effect the validity or enforceability of the insurance insofar as the other Parties are concerned; (ii) the Policy shall not be materially changed (other than to increase the coverage thereby) or cancelled without thirty (30) days' written notice to the other Parties and any other party named therein as an insured; (iii) the issuers thereof shall give written notice thereof to the named insureds if the Policy has not been renewed at least thirty (30) days prior to its expiration; (iv) the company issuing the Policy waives the right to subrogation to enforce claims or rights against any Parties named as insureds thereunder. The Parties agree to cooperate in good faith to establish a plan for risk management of all losses, whether insured or not, occurring on the Project Parcel in connection with or related to the construction of the Project. Specifically, but without limiting the generality of the foregoing, the parties shall notify each other and keep each other apprised of all claims and occurrences which reasonably could result in any liability or insured incident hereunder, and each Party shall cause its risk managers to consult on a regular basis with the other Party's risk management team to share information regarding any and all claims filed for losses occurring on the Project Parcel related in any way to the completion of the Project, whether such losses are the responsibility of the City or the City's agents, contractors or subcontractors, or Developer or its affiliates. Section 9. Indemnity. The City agrees to and does hereby indemnify, defend and hold the Developer, its affiliates, employees, representatives and agents, harmless to the extent authorized by law, of and from any and all losses, Costs, claims, damages, injury, expense or liability (including, without limitation, reasonable attorneys' fees and court costs and expenses) arising by reason of injury to or death of persons, damage to property or claims for liens for Work or labor performed, materials or supplies furnished arising out of or in connection with the performance of the Work undertaken or performed by or on behalf of the City. The Developer agrees to and does hereby indemnify, defend and hold the City, its employees, representatives and agents, harmless of and from any and all losses, Costs, claims, damages, injury, expense or liability (including, without limitation, reasonable attorneys' fees and court costs and expenses) arising by reason of injury to or death of persons, damage to property or claims for liens for Work or labor performed, materials or supplies furnished arising out of or in connection with the performance of the Work undertaken or performed by or on behalf of the Developer. Section 10. Mechanics' Liens. The City shall perform, or cause to be performed, the Public Improvement Work in a manner that will avoid the imposition of any mechanics' liens or other similar encumbrances ("Mechanics' Liens") on the Project Parcel, unless removed by bond or otherwise within thirty (30) days of the date the City receives notice of such lien (or such other reasonable time as shall be reasonably acceptable to the Developer). The Developer shall perform, or cause to be performed, the Section 380 Improvement Work in a manner that will avoid the imposition of any mechanics' liens or other similar encumbrances ("Mechanics' Liens") on the Project Parcel, unless removed by bond or otherwise within thirty (30) days of the date the Developer receives notice of such lien (or such other reasonable time as shall be reasonably acceptable to the City). Section 11. Access and Easements. 8/27/2001 11:56 AM 10 o:\sta n\gaylord\agreemnt\Construction_Development_Agmt_Rev_"-O 1 r (a) Access. During the term of this Agreement and subject to the terms hereof, the Developer shall provide the City and all contractors, agents and employees of the City and other Persons to the extent properly involved in the performance of the Public Improvements Work, with such access to, over and upon the affected portions of the Project Parcel as may be necessary or appropriate for the performance of the Public Improvements Work and as may be reasonably required to enable the City to perform the obligations required to be performed by it hereunder. (b) Temporary Construction Easements. The Developer hereby creates, grants and declares a temporary, non-exclusive easement to and in favor of the City, in, on, over, under and across the Project Parcel for the purpose of performing the Public Improvements Work and as shall be required or appropriate to enable the City to perform its obligations and exercise its rights hereunder, together with the right and license to access the applicable portions of the Project Parcel and to store materials and equipment thereon only within the areas designated by the Developer, subject, nevertheless, to the terms and provisions of this Agreement. The City agrees that in no event shall any materials or equipment be stored within any areas of the Project Parcel not designated as storage or staging areas by the Developer. The foregoing temporary non-exclusive easements shall automatically terminate with respect to the Project Parcel, at such time as the construction of the Work has been completed, provided that, in each case, the City shall have a reasonable time to demobilize and remove equipment from the easement areas. Section 12. City Interests; Public Rights of Way. The Parties acknowledge that, upon completion of Roadways A, B and C, such Roadways shall be dedicated to the City as public rights- of-way. In addition, the Parties acknowledge that the City has (or will be granted) an interest in the portions of the Project Parcel on which the Parking Facilities are located, pursuant to easements granted by the Developer to the City. The Parties agree to execute such documents as may be necessary to effectuate the dedication of Roadways A, B and C, to grant an easement for public access for ingress and egress over Roadway D, and to complete the transactions contemplated by this Agreement.. Section 13. Relationship of the Parties. The City and the Developer agree that, by virtue of this Agreement, they shall not be deemed to be partners, co -venturers or principal and agent. Section 14. Notice. Any notices or communications required or permitted to be given or made hereunder shall be deemed to be so given or made when in writing and delivered in person with evidence of receipt or sent by United States registered or certified mail, postage prepaid, or by overnight courier service, directed to the parties at the following addresses (in which event such notice shall be deemed effective only upon such delivery): If to the City: City of Grapevine 200 South Main Street Grapevine, Texas 76051 Attn: City Manager Fax No.: (817) 410-3002 8/27/2001 11:56 AM 11 o:\stan\gaylord\agreemnt\Construction—Development_Agmt—Rev—M-01 with a copy to: John F. Boyle, Jr. Boyle & Lowry, L.L.P. 4201 Wingren, Suite 108 Irving, Texas 75062-2763 Fax No.: (972) 650-7105 If to OHT: Opryland Hotel — Texas Limited Partnership c/o Gaylord Entertainment Company 535 Marriott Drive Suite 600 Nashville, TN 37214 Attn: Hospitality Group - President Fax No.: (615) 902-8398 with a copy to: Kim A. Brown, Esq. Sherrard & Roe, PLC 424 Church Street, Suite 2000 Nashville, TN 37219 Fax No. 615-742-4539 The addresses and addresses for the purpose of this Section may be changed by giving written notice of such change in the manner herein provided for giving notice. Unless and until such written notice of change is received, the last address and addresses stated by written notice, or provided herein if no such written notice of change has been received, shall be deemed to continue in effect for all purposes hereunder. Section 15. Entire Agreement; Exhibits. This Agreement contains the entire agreement between the parties hereto relative to of the Infrastructure Improvements. No variations, amendments, modifications or changes herein or hereof shall be binding upon any Party hereto unless set forth in a document duly executed by and/or on behalf of such Party. Each of the Parties hereto shall from time to time and at all times do all such other further acts as may reasonably be necessary in order to fully perform and effect the terms and intent hereof. The exhibits referenced herein and attached hereto are incorporated herein for all purposes, and this Agreement shall be interpreted and construed in light of such exhibits, including both the textual content and pictorial content thereof; provided, however, that nothing shall be implied or inferred by any matters that are described or depicted on any of the exhibits hereto, which matters exceed the intended scope of the subject exhibit as described in the text of this Agreement. Section 16. Authority of Parties. Each Party signing this Agreement represents and warrants that the execution, delivery and performance of this Agreement by it has been duly authorized by all requisite corporate or partnership actions and that this Agreement is binding upon it and is enforceable in accordance its terms. Section 17.Cooperation-Reasonableness. The Parties hereto covenant and agree that, in the event the same is necessary to fully implement the intent of this Agreement, each such Parry shall execute such further documents and perform such other acts as may be reasonably required therefor. 8/2712001 11:56 AM 12 o:\stan\gaylord\agreemnt\Construction_Development_Ag mt_Rev_8-" 1 1 „ Section 18. Interpretation; Severability. The Parties hereto acknowledge and agree that 1 each has been given the opportunity to review this Agreement with legal counsel independently, and/or has the requisite experience and sophistication to understand, interpret, and agree to the particular language of the provisions hereof. In the event of an ambiguity in or dispute regarding the interpretation of same, the interpretation of this Agreement shall not be resolved by any rule of interpretation providing for interpretation against the Party who causes the uncertainty to exist or against the draftsman. The unenforceability or invalidity of any provision of this Agreement shall not be deemed to affect the enforceability or validity of any other provision of this Agreement. Section 19. Assignment; Covenants Running with the Land. Subject to the terms hereof, the covenants, undertakings and easements arising hereunder are intended to be and shall be covenants running with the land with respect to the Project Parcel. Section 20. Attorneys' Fees. If any action, proceeding or other legal claim is brought by a Party against any other Party under this Agreement, the prevailing Party in such action, proceeding or claim shall be entitled to recover all reasonable costs and reasonable expenses including the actual reasonable fees of its attorneys incurred for protection, defense, consultation, or advice in such action or proceeding. In addition to the foregoing award of attorneys' fees to the prevailing Party, the prevailing Party in any action or proceeding on this Agreement shall be entitled to its reasonable attorneys' fees incurred in any post judgment proceedings to collect or enforce the judgment. This provision is separate and several and shall survive the merger of this Agreement into any judgment on this Agreement. Section 21. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Section 22. Amendment. This Agreement may be amended and/or supplemented only by a writing signed by the Parties. Notwithstanding the foregoing, the Parties agree to cooperate and to enter into such non -material and technical modifications of this Agreement as shall be required from time to time to be made as a result of matters arising in connection with the Project after the date hereof. 8/27/2001 11:56 AM 13 o:\stan\gaylord\agreemnt\Construction—Development_Agmt—Rev-8-M1 IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date and year first above written. 'I OPRYLAND HOTEL - TEXAS LIMITED PARTNERSHIP, a Texas limited partnership By: Opryland Hospitality, Inc., its managing general partner LOW Its: THE CITY OF GRAPEVINE, TEXAS, a Texas home rule municipality ATTEST: Linda Huff, City Secretary APPROVED AS TO FORM: John F. Boyle, Jr., City Attorney 8/2712001 11:56 AM o:\stan\gaylord\agreemnt\Construction_Development_Agmt_Rev_8-6-01 14 INDEX OF EXHIBITS TO CONSTRUCTION DEVELOPMENT AGREEMENT Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E 8/27/2001 11:56 AM Project Parcel Site Plan Budget Infrastructure Improvements Project Schedule o:\stan\gaylord\agreemnt\Construction_Development Agmt_Rev_8-6-01 15 3' / AAI i , fAAMK SCALE N FEET It ..w..• � 11 ��;�i� � i 4 W � � \ is i'`• t. \ R1 '� `•� LOCATION MAP OPRYLAND TEXAS CITY OF GRAPEVINE, TEXAS , x 1 Gor4ar Burgess Fishing Pier ( I 1;. y Parkin r--ZL-3 y X , r i V,\ t �� r '• 4 f, ; u f /Bib rr ily f J GAYLORD `,T rr:Tnr^t1 L ST � `e f JI c' I -uuwnmaommmmmo r s'4 M1 1 r EXHIBIT Bim:'- t lr � �'ti I ✓ A \ f l x ike /Bike r r Trail t-ka L ° , -r t ��v `�- ✓ i s \� a \\ \ I �\_. i/ may.♦/�7 ,� }' � / I t \ ' \ z l• :f COMPREHENSIVE DEVELOPMENT PLAN OPRYLAND TEXAS CITY OF GRAPEVINE �� tir,,,� e, a � � • I. K r � � ' t ^*�'' w j � • Ci Cotter Burgess y 2{Ylpr . •{MSM nr.l•.w PROJECT BUDGET OF i SECTION 380 IMPROVEMENTS PUBLIC IMPROVEMENTS Gaylord Trail with Bridge Roadway C 16" Water Line Ruth Wall Street Water and Wastewater Facilities Total SECTION 380 IMPROVEMENTS $ 7,241,533 $ 13,798,695 Parking Garage 1 Convention Center $ 14,087,367 North Parking Lot Water and Wastewater Lines Storm Drainage Lines Roadway D TOTAL FUNDS ADDITIONAL FUNDS $ 386,062 O:VSTAN\GAYLORD\AGREEMNnCD_EXHIBITC_REV 8-6-01 INFRASTRUCTURE IMPROVEMENTS Infrastructure Improvements means the following improvements designed and constructed in accordance with plans and specifications approved by the City of Grapevine: Public Improvements * Roadways A, B, & C • Bridge included in Roadway A • Intersection Improvements, including traffic signals, at the Roadway A / SH 26 Intersection. • Customary sodding, seeding and irrigation in construction areas to re- establish vegetation upon completion of construction. Utility Facilities including water and wastewater lines, lift station, and associated facilities and appurtenances constructed in association with Roadways A, B &C. Section 380 Improvements * Mass Grading of the Site * Roadway D Water and Wastewater Lines with Associated Appurtenances Constructed on Hotel Site including: 12" Water Line Looping the Site 8" Crossing Water Line Between Hotel & Support Bldg Fire Hydrants & Leads Fire Lines up to the Buildings 0:\stan\gaylord\agreemnt\cd—agmt—exhibitd—rev-8-6-01 EXHIBIT D INFRASTRUCTURE IMPROVEMENTS Infrastructure Improvements means the following improvements designed and constructed in accordance with plans and specifications approved by the City of Grapevine: Public Improvements * Roadways A, B, & C • Bridge included in Roadway A • Intersection Improvements, including traffic signals, at the Roadway A / SH 26 Intersection. • Customary sodding, seeding and irrigation in construction areas to re- establish vegetation upon completion of construction. Utility Facilities including water and wastewater lines, lift station, and associated facilities and appurtenances constructed in association with Roadways A, B &C. Section 380 Improvements * Mass Grading of the Site * Roadway D Water and Wastewater Lines with Associated Appurtenances Constructed on Hotel Site including: 12" Water Line Looping the Site 8" Crossing Water Line Between Hotel & Support Bldg Fire Hydrants & Leads Fire Lines up to the Buildings 0:\stan\gaylord\agreemnt\cd—agmt—exhibitd—rev-8-6-01 Wastewater Lines & Manholes Serving the Site • Public Parking Facilities consisting of: one (1) parking garage located beneath the Convention, Center one (1) surface parking lot located north of the Hotel Customary sodding, seeding and irrigation in construction areas to re- establish vegetation upon completion of construction. 0:\stan\gaylord\agreemnt\cd—agmt—exhibitd—rev_8-6-01 IR Bill.. ............ . ........... ............................« . ..... . ..... .. .. ............... ...... . . . . . . . . . . . . . -- . ............. ..... .............. . . . ... . ......... .............. . . . ... ........... ......... ................................. . . . .............. ---------------- .......... ..................... .. . . ....... . z > 0 M 33 r < CC cr x Z z z z a- (.1 > n m Z S z z LD J Z rq IX 'T 3, u 0 9 A2 0 0 :2 8 X, Ix 2 ! f 911 _.______..___._ _ .......__....__.._.»._.____.. .....__.._.._„... 3..... «.._. _—..........„.._._m......_.__„„ ..,,...__.._......_...... ..._........ _.............. 8 �. _..._...a....._........_ .............. « ......»..............__. g _.._.....,...._.... _.............._.._.... _ o ` Z�or i 7C S 2 WR n1.3 � o p w ........ ...... _._.... i3 .” ....._.._.....................n...�,. ................_....«. W wol ! -- _ . ».._.._._..._.. ._.. ........ ........a.. » . lz z � z a` < Y_ �i n Ile tt M1^ U. N .. _.gg • •, n Hill • � ^ � � Y 3 � Y $' k � Y Y 5 x �. • tL■1' 8 6 CC L • • j • C �. f 3 8 • �u j o j 3 'Y O 7++ �': _i = Q • 1 �1 • �' M u a + b > C �l 1 . E U? n �V > M 1 s C w '3” ,1 b • , C �1 1 � C : _ # Q � � ; MC O C• � O _ � � • � �: � O � y O � � C PM �yy IF 1 e Al tl�k 1 I b - a it �, • A It 1kt{k ■c it ♦ ♦ _ euW OPERATING AND MAINTENANCE AGREEMENT } AMENDMENT # 1 THIS OPERATING AND MAINTENANCE AGREEMENT (this "Agreement") is made and entered into as of this day of , 2001, by OPRYLAND HOTEL — TEXAS LIMITED PARTNERSHIP, a Texas limited partnership ("OHT"), and THE CITY OF GRAPEVINE, a Texas home rule municipality located in the counties of Tarrant, Dallas and Denton, Texas, and existing under the laws of the State of Texas (the "City"). (OHT and the City are sometimes hereinafter referred to individually as a "Party" and collectively as the "Parties".) RECITALS: A. OHT is developing an 1,500 room convention center hotel to be known as Opryland Hotel - Texas (the "Project") on property located in the City of Grapevine, Tarrant County, State of Texas generally described in Exhibit A attached hereto (the "Hotel Site"). B. A portion of the Hotel Site (the "Corps Property") is owned and/or leased by the City from the Corps, pursuant to Supplemental Agreement No. 4 To Lease No. DACW63-1-94-0552- Grapevine. Lake Texas (the "Corps Lease"), and has been (or will be) subleased by the City to OHT pursuant to a Hotel/Convention Center Sublease Agreement dated as of May 16, 2000, between the City, as sublessor, and OHT, as sublessee. C. In connection with the Project, OHT is developing on the Corps Property an approximately 400,000 square foot convention center and meeting facility to include a subterranean parking garage (the "Convention Center"), to be operated by OHT as part of the Project. D. Also, in connection with the Project, the City is constructing certain infrastructure improvements related to the Project, including construction of certain roads, the main bridge serving the Project, water and sewer lines, and certain other improvements, as described in Exhibit B attached hereto (the "Infrastructure Improvements"). E. OHT and the City desire to enter into this Agreement to provide for the allocation of operation and maintenance responsibilities for various improvements and systems contained within or related to the Development as specified in this Agreement. NOW, THEREFORE, in consideration of the foregoing and the sum of One Dollar ($1.00) in hand paid by each Party to the other, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Recitals Incorporated by Reference. The representations, covenants and recitations set forth in the foregoing recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Section 1. 2. Definitions. For purposes of this Agreement, capitalized terms not otherwise defined herein shall have the follow meanings: (a) "Affiliate" means, with respect to any Person: (i) a parent, spouse, child or sibling of such Person, or a trust, the primary beneficiary(ies) of which is such Person and/or the 8/27/2001 11:56 AM o:\stan\gaylord\agreemnt\o&nom agnu_rev_8-6-01 spouse, parents, siblings and/or children of such Person, and (ii) any other Person which controls, is controlled by or is under common control with the Person in question. (b) "Bridge" means the bridge serving the main access road, Roadway A, for the Project, as described in Exhibit B. (c) "Construction Development Agreement" means the Construction Development Agreement of even date herewith between the City and OHT. (d) "Convention Center" means the approximately 400,000 square foot convention and meeting center being developed by OHT as part of the Project, and includes the subterranean parking garage being developed as part of the Convention Center. (e) "Corps" means the United States Army Corps of Engineers. (f) "Corps Lease" means the Supplemental Agreement No. 4 to Lease No. DACW63-1-94-0552, Grapevine Lake, Texas, and the underlying agreements as described therein. (g) "Corps Property" means the property, as reflected in Exhibit attached hereto. (h) "Executive Course" means the 18 -hole executive course to be developed by OHT as part of the Project. (i) "Infrastructure Improvements" means the publicly funded Infrastructure Improvements comprised of Public Improvements being constructed by the City and Section 380 Improvements being constructed by OHT as part of the Project, as described in Exhibit B attached hereto. 0) "Loss" or "Losses" means all damages, awards, judgments, payments, diminutions in value and other losses, however suffered or characterized, all interest thereon, all costs and expenses of investigating any claim, lawsuit or arbitration and any appeal therefrom, all actual attorneys' fees incurred in connection therewith, whether or not such claim, lawsuit or arbitration is ultimately defeated and all amounts paid incident to any compromise or settlement of any such claim, lawsuit or arbitration. (k) "Maintenance Responsibilities Matrix" means the matrix attached hereto as Exhibit D and made a part hereof. (1) "Maintenance Items" means the categories of improvements and systems listed on the Maintenance Responsibilities Matrix, each of which individually is a "Maintenance Item". (m) "Parking Facilities" means the Convention Center parking garage, the north surface parking lot, and related facilities to be constructed by OHT as Section 380 Improvements, as identified in Exhibit B, attached hereto. 8/27/2001 11:56 AM o: \stan\gaylord\agreemnt\oRcm_agmt_rev_8-6-01 01 (n) "Project" means the 1,500 room convention center hotel and approximately � 400,000 square foot Convention Center and related parking garage and other amenities to be developed in connection with the Project. (o) "Public Improvements" means those Infrastructure Improvements bid, contracted for and constructed solely by the City in the course of normal operations, as described in Exhibit B, attached hereto. I (p) "Section 380 Improvements" means those Infrastructure Improvements authorized as part of an Economic Development Program established by the City Council under Section 380 of the Texas Local Government Code, as described in Exhibit B, attached hereto. in Exhibit B. (q) "Roadways" means the roadways to be constructed by the City as described (r) "Subleases" means the Sublease Agreements between the City and OHT covering the Project. (s) "Unrelated Parties" means any or all of the Texas Department of Transportation ("TxDOT"), Texas Utilities Electric Company ("TxU Electric"). (t) "Utility Facilities" means the water and wastewater lines and associated facilities or appurtenances to be constructed and installed by the City as Public Improvements and by OHT as Section 380 Improvements as described in Exhibit B attached hereto. 3. Operations. OHT shall be responsible for operation of the Convention Center. Subject to the provisions of Section 12 hereof, the Convention Center shall be operated as a destination convention and meeting center integrated as part of the overall Project. The City shall have no rights with respect to use of the Convention Center facilities, except as approved in advance by OHT. 4. Maintenance Obligations. (a) The Maintenance Responsibilities Matrix identifies the person or entity responsible for maintaining each of the Maintenance Items at various locations within and without the Development. (b) The City agrees to and shall maintain, or cause to be maintained, those Maintenance Items at the locations identified on the Maintenance Responsibilities Matrix, which are identified as the responsibility of the City. The City shall cause such maintenance to be performed to normal City standards for similar projects in order to provide for the safe and efficient operation of those Maintenance Items and in connection with the needs of the Development. The parties agree that any extraordinary maintenance of the aesthetic portions of the Bridge over and above normal and customary City maintenance of similar bridge structures shall be the responsibility of OHT. (c) OHT agrees to and shall maintain, or cause to be maintained, those Maintenance Items at the locations identified on the Maintenance Responsibilities Matrix, which are identified as the responsibility of OHT. OHT shall cause such maintenance to be performed to the standard customarily required at other comparable developments, in order to provide for the safe and 8/27/2001 11:56 AM 3 o:\sta n\gaylord\agreemn t\o&m_agmt_rev_8-6-01 In WITNESS WHEREOF, the Parties have duly executed this Agreement pursuant to all requisite authorizations as of the date first above written. OHT: OPRYLAND HOTEL - TEXAS LIMITED PARTNERSHIP, a Texas limited partnership By: Opryland Hospitality, Inc., its managing general partner Its: THE CITY: THE CITY OF GRAPEVINE, TEXAS, a Texas home rule municipality Its: ATTEST: Linda Huff, City Secretary APPROVED AS TO FORM: John F. Boyle, Jr., City Attorney 8/27/2001 11:56 AM o:\ scan\gayl ord\agreemntlo&m_a gmt_rev_8-6-01 'I 201603.07 50027-0009 8/27/2001 11:56 AM 9. ' Hotel ,Site (to be supplied) Infrastructure Improvements (to be supplied) 201603.07 50027-0009 8127/2001 11:56 AM 0 201603,07 50027-0009 8/27/2001 11:56 AM 1AMMI. 11" (to be supplied) Maintenance Responsibilities Matrix 201603.07 50027-0009 8/27/2001 11:56 AM Fishing Pier EXHIBIT A ` N Parking I ` N N COMPREHENSIVE DEVELOPMENT PLAN OPRYLAND TEXAS CITY OF GRAPEVINE I W.4• INFRASTRUCTURE IMPROVEMENTS Infrastructure Improvements means the following improvements designed and constructed in accordance with plans and specifications approved by the City of Grapevine: Public Improvements • Roadways A, B, & C • Intersection Improvements, including traffic signals, at the Roadway A/ SH 26 Intersection. • Customary sodding, seeding and irrigation in construction areas to re- establish vegetation upon completion of construction. • Utility Facilities including water and wastewater lines, lift station, and associated facilities and appurtenances constructed in association with Roadways A, B &C. Section 380 Improvements • Mass Grading of the Site 0 Roadway D 0 Water and Wastewater Lines with Associated Appurtenances Constructed on Hotel Site including: 12" Water Line Looping the Site 8" Crossing Water Line Between Hotel & Support Bldg Fire Hydrants & Leads Fire Lines up to the Buildings 0:\.stan\gaylord\agreemnt\om—agmt—exhibitb rev -8-6-01 0 Wastewater Lines & Manholes Serving the Site • Public Parking Facilities consisting of: one (1) parking garage located beneath the Conventiorl Center one (1) surface parking lot located north of the Hotel • Customary sodding, seeding and irrigation in construction areas to re- establish vegetation upon completion of construction. I 0:\stan\gaylord\agreemnt\om-agmt-exhibitb-,rev-8-6-01 FISHING PIER i , .T r' _ilk.•,..• •—? Ol j J j'f EXHIBIT C qQ L"PUBLIG 1 ` tt X �` BOAT , ) r DO t r � � V RAMP ;r ✓ k �, // %"( ,,r� 3 t4 J J } 1 r` 1 ti -'' 7 ""' tip AREA: 29.71 Ac. � I t- l�� e lw ' s i = ' '�- `1 _ � � ?i F 11��• t *. ;1 . , ,1 � ? 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I,rG�'_, ,k, i HOTEL K <`',� LEASE AREA OPRYLAND TEXAS , ,/, a , CITY OF GRAPEVINE r , cffrf*r \i ?k 1L�+.ss , r' ..' .f ` ,; a�A:7 ;'T.- c /•� r �P,' + 1�.--:jAtt,1••' f � r�/,� �?S �1 .�. �• y EXHIBIT D MAINTENANCE MATRIX MAINTENANCE ELEMENT CITY OF GRAPEVINE OHT TxDOT Tx—UTIL R Roadway A Paving x Drainage x Sidewalks x Striping x Signing x Hike and Bike Trail x 16" Water Line x Street Lighting x Landscaping x Irrigation x SH 26 Intersection Signals x Pavement x Striping x Signing x Landscaping SH 26 Median x Irrigation SH 26 Median x Landscaping Entrance Road x Irrigation Entrance Road x Bridge Structure x Pavement x Cart Trail x Hike & Bike Trail x Lighting x Striping x 0:\STAN\GAYLORD\AGREEMNTiMAINT-MATRIX -REV -8-6-01 AQ OPRYLAND -TE)(A%.f S MAINTENANCE ELEMENT CITY OF OHT TxDOT TxUTIL 1.1 JGRAPEVINE 1 Roadway B (Ruth Wall St) Paving X Drainage X Box Culvert X Sidewalks X Striping X Signing X Hike and Bike Trail X 16" Water Line X Street Lighting X Landscaping X Irrigation X Lift Station X Force Main X Wastewater Trunk - Hotel X Wastewater Trunk - Trencor X Roadway C Paving X Drainage X Sidewalks X Striping X Signing X Hike and Bike Trail X 16" Water Line X Street Lighting X Landscaping X Irrigation X 0:\STAN\GAYLORD\AGREEMN-F\MAINT-MATRIX-REV-8-6-01 MAINTENANCE ELEMENT CITY OF GRAPEVINE OHT TxDOT TxUTIL Convention Center X Parking Garage X North Parking Lot X Roadway D X Elevated Hotel Entry Drive X 12" Waterline X 8" Xing Waterline Between Hotel & Support Bldg X O:\STAN\GAYLORD\AGREEMNT\MAINT MATRIX REV 8-6-01