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RESOLUTION NO.2020-121R <br />AN RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN <br />MARCOS, TEXAS AUTHORIZING THE EXECUTION OF A GROUND <br />LEASE AND ACQUISITION AGREEMENT BETWEEN THE CITY AND <br />HUNT SAN MARCOS DEVELOPMENT, LLC FOR THE CITY'S NEW <br />PUBLIC SERVICES CENTER; ESTABLISHING A FACILITY <br />PURCHASE PRICE UNDER THE GROUND LEASE IN AN AMOUNT NOT <br />TO EXCEED $44,400,000.00; APPROVING AND AUTHORIZING THE <br />EXECUTION OF AMENDMENT ONE TO THE EXCLUSIVE <br />NEGOTIATING AGREEMENT (ENA) WITH HUNT SAN MARCOS <br />DEVELOPMENT, LLC TO, AMONG OTHER THINGS, PROVIDE FOR <br />$62,409 OF ADDITIONAL PRE -DEVELOPMENT SERVICES FOR A NEW <br />TOTAL AMOUNT PAYABLE UNDER THE ENA OF $1,562,409.00; <br />AUTHORIZING OTHER MATTERS IN CONNECTION THEREWITH; <br />AND DECLARING AN EFFECTIVE DATE. <br />RECITALS: <br />1. In 2008, the City of San Marcos, Texas (the City) merged three departments, <br />Water/Wastewater, Public Works, and San Marcos Electric Utility, into one department, known as <br />Public Services. <br />2. Even before this merger, the City recognized these departments had grown beyond <br />the ability of the existing facilities to house them in a safe, effective, and cost-efficient work space. <br />3. After a multi-year study that included a comprehensive facility assessment to <br />document the then -current and forecasted needs of the merged Public Services department into a <br />consolidated facility, the City initiated a competitive process under Chapter 2269, as amended, <br />Texas Government Code (the Selection Process) to identify and select the most qualified provider <br />to deliver a facility of specified characteristics pursuant to the "design -build" method of technical <br />project delivery. <br />4. At the conclusion of this Selection Process, at the recommendation of City <br />administration (who was advised by third party consultants), the Council selected Hunt <br />Companies, Inc. (Hunt) to deliver a consolidated public works facility to house the Public Services <br />department, which facility shall, upon completion, consist of eight functional areas totaling <br />approximately 140,000 gross square feet and onsite surface parking for approximately 700 vehicles <br />(the Facility) built on City -owned land (such City -owned land, the Parcel), developed in <br />accordance with the technical requirements included in and made a part of the Selection Process. <br />5. On December 3, 2019, the City entered into an Exclusive Negotiating Agreement <br />(the ENA) with Hunt San Marcos Development, LLC (the Lessee), a wholly-owned Hunt - <br />subsidiary created specifically for the purpose of developing the Facility, which agreement <br />specified the terms and provisions by which the Lessee would conduct preliminary development <br />