Res 2023-070/approving the Memorandum of Understanding with Don Jackson Construction (DJC) for design and construction of a total of 55,100

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Rez- do,-)3 - CITY OF SAN MARCOS,TEXAS SAN MARCOS REGIONAL AIRPORT MEMORANDUM OF UNDERSTANDING RELATED TO THE DEVELOPMENT OF THE KILO DEVELOPMENT AREA PURSUANT TO A REQUEST FOR PROPOSALS This Memorandum of Understanding ("MOU") is effective this 10" day of April, 2023 ("Effective Date"),between the City of San Marcos,Texas("City")and Don Jackson Construction, Inc. ("DJC"or"Developer"), as follows: Statement of Understanding 1. Request for Proposal Process.DJC was the successful respondent for a Request for Proposal(RFP) for the Lease of Land at the San Marcos Regional Airport for Aeronautical Development issued on June 20, 2022. As such, the City and DJC desire to enter into an MOU outlining requirements related to build-to-suit hangar construction in the Kilo Development Area(KDA). 2. Demise. Pursuant to the RFP, DJC, as the successful respondent, will have exclusive ability to market and develop approximately 55,100 square feet of real property (the "Property") for aeronautical use as described in Exhibit A. 3. Feasibility Period.From and after the Effective Date,DJC shall have one hundred and eighty(180) days following the Effective Date("Feasibility Period")to evaluate the economic feasibility of the Project.If,prior to the expiration of the Feasibility Period,and after DJC's due diligence,Developer determines that market conditions are not suitable for DJC's intended use of the built-to-suit hangars and construction of said hangars in the KDA (the "Project"), DJC may terminate this Agreement by written notice to City,whereupon this Agreement shall become null and void and of no further force or effect, and the parties hereto shall have no further obligations to one another. Developer's due diligence shall include, but is not limited to, frequent public meetings regarding the Project and advertisement of the Project. 4. Development Fee. Beginning April 10, 2023, DJC will pay to City a fee equal to$0.40 per square foot per year for the entirety of the Property equal to$1,836.67 per month. Development Fee shall be due on or before the first day of each calendar month and should be considered past due if, after the fifth (5`") day of the month, the City has not received full payment either in person or by mail to 4400 Highway 21, San Marcos, Texas 78666. a. Fee Reduction. The Property square footage, and thereby the monthly Development Fee, will be reduced upon commencement of any future ground lease executed between the City of San Marcos and the purchaser of the build-to-suit facility. b. Late Fee. Payments not received by the fifth day of the month will be considered late a $15.00 per day late charge will be assessed. 5. Period of Performance. DJC will have ninety(90)days of approval of both the initial ground lease and associated permits or from the expiration of the Feasibility Period, whichever is later to begin construction of the build-to-suit hangars(the "Start Period").