Res 2021-123/ratifying a Developer Participation Agreement with SML Owner I, LLC for the City to participate in the cost of replacing a section of a water main in the vicinity of the Lofts I and II Apartments

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DEVELOPER PARTICIPATION AGREEMENT This agreement (the "Agreement") is entered into effective July 6, 2021 (the "Effective Date") by and between the City of San Marcos, a Texas municipal corporation (the "City"), and SML Owner I, LLC a Delaware limited liability company (the "Developer"). I. RECITALS 1.1 Section 212.071 of the Texas Local Government Code authorizes the City to participate with a developer of a subdivision or land in the cost to construct public improvements. 1.2 The Developer is developing a tract of land known as San Marcos Lofts Phase 1 and 2 in San Marcos, Hays County, Texas with two mid -rise buildings and parking garage located at 141 W. Hopkins (Permit number: 2019-28322) and 205 W. San Antonio St. (Permit number: 2019-28324; each a "Building", and collectively the "Development"). The Developer is obligated under applicable ordinances to construct and dedicate certain public improvements necessary to support the Development pursuant to the Public Improvement Construction Plans (the "PICP Plans") for San Marcos Lofts 1 and 2, Permit No. 2019-28248 (the "PICP Work") dated as of June 25, 2019. 1.3 The City's engineers, on May 17, 2021, determined that there is a public need to install a new water line (the "New Water Line") in the area of the Developer's ongoing PICP Work. The City wishes to install the New Water Line before the Developer completes the PICP Work and paves the surface of the area above the New Water Line to avoid future damage to public surface improvements dedicated to the City by Developer that would result if the City installed the New Water Line after such other public improvements were completed. Installing the New Water Line while the PICP Work is being completed is also more cost effective as Owner's Contractors (defined below) are already mobilized. Therefore, the City wishes to contract with the Developer to provide for the construction and allocation of costs for the New Water Line. The PICP Work and the New Water Line are, collectively, the "Improvements." H. AGREEMENT In consideration of the mutual benefits to and obligations of the parties under this Agreement, the parties agree to the following terms and conditions: 2.1 Design and Construction of Improvements 2.1.1 Construction. The Developer has contracted with Alshab Construction Group ("ACG") as its general contractor and AVB Construction ("AVB") as its construction manager (collectively, the "Owner's Contractors") to complete the construction of the Improvements in accordance with the PICP Plans. The City has approved the scope of work prepared by ACG's subcontractor, Allied Underground ("Allied"), dated as of May 24, 2021 (attached as Exhibit A) to construct the New Water Line, and the City will inspect the installation of the New Water Line as construction 123138865.3