Res 2018-172/amending and restating the Trace Public Improvement District Financing Agreement

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(c) The City and the Owner shall cooperate in structuring the construction contracts for the Public Improvements to comply with requirements (including those set forth in Texas Tax Code Section 151.309) for exemption from sales and use taxes. Section 3.06. Exemption from Public Bidding It is agreed that the PID will be exempt from any public bidding or other purchasing and procurement policies pursuant to Texas Local Government Code Section 252,022(a)(9) which states that a project is exempt from such policies if"paving drainage, street widening, and other public improvements, or related matters, if at least one-third of the cost is to be paid by or through special assessments levied on property that will benefit from the improvements." ARTICLE IV. PAYMENT FOR PUBLIC IMPROVEMENTS Section 4.01. Overall Requirements (a) The City shall not be obligated to provide funds for any Public Improvement except from the proceeds of the Major Improvement PID Bonds or from Special Assessments as provided in Section 2.03(6)above;provided however,the City and the Owner have executed that certain Developer Participation Agreement dated as of May 15, 2018 in which the City has agreed to reimburse the Owner for certain wastewater infrastructure costs. The City makes no warranty, either express or implied, that Special Assessments or the proceeds of the Major Improvement PID Bonds available for the payment of the Actual Cost of the Public Improvements to be constructed for or acquired by the City will be sufficient for the construction or acquisition of all of those particular Public Improvements. The Parties anticipate that the Actual Cost to construct the Public Improvements may be greater than the proceeds of the Major Improvement PID Bonds or from Special Assessments available for Public Improvements and any shortfalls will be funded by the Owner, subject to Section 2.03(6). (b) Upon written acceptance of a Public Improvement, and subject to any applicable maintenance-bond period,the City shall be responsible for all operation and maintenance of such Public Improvements, including all costs thereof and relating thereto except for such Public Improvements conveyed to the City by easement, and which will be maintained by an Owner's Association. (c) The Public Improvements are intended to be constructed pursuant to the Amended Reimbursement Agreement and paid for by the Owner prior to the issuance of Major Improvement PID Bonds intended to fund such Public Improvements. Such funding of the Public Improvements will be governed by the Amended Reimbursement Agreement and Section 4.02 of this Agreement. Section 4.02. Payments for Completed Public Improvements The costs of all Public Improvements will be initially financed through the Amended Reimbursement Agreement. Pursuant to the terms of the Amended Reimbursement Agreement the Owner shall convey, and the City shall acquire, any given Public Improvement for the Actual 9