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HomeMy WebLinkAboutORD 2020-35 - Dev. Agrmt Oaks at San GabrielORDINANCE NO. !Zv [.OJ5 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS APPROVING THE "SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT CONCERNING THE OAKS AT SAN GABRIEL SUBDIVISION," A SUBDIVISION IN WILLIAMSON COUNTY, TEXAS CONSISTING OF APPROXIMATELY 397.768 ACRES GENERALLY SITUATED NORTH OF SH 29 AND EAST OF THE CIMARRON HILLS SUBDIVISION; REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Oaks at San Gabriel, L.L.C., a Texas limited liability company ("Oaks"), is the developer of approximately 397.768 acres of land known locally as the Oaks at San Gabriel Subdivision (the "Property"). WHEREAS, on May 10, 2007, City of Georgetown, Texas ("City") and Oaks entered into that certain "Development Agreement Concerning the Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson County as Document No. 2007040907, and on December 4, 2007 entered into that certain "First Amendment to the Development Agreement Concerning the Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson county as Document No. 2008001039 (together, the "Development Agreement") WHEREAS, Oaks has applied for an amendment to the Development Agreement to, among other things, increase the number of residential lots that are allowed on the Property to 944, clarify the Open Space definitions and requirements, add architectural and masonry standards, and make other conforming changes. WHEREAS, the "Second Amendment to Development Agreement Concerning the Oaks at San Gabriel Subdivision" attached as Attachment 1 (the "Second Amendment") provides for the development of the Property and construction of public infrastructure and the City Council of the finds that it has the authority approve the Second Amendment pursuant to Section 212.172 of the Texas Local Government Code. Ordinance No. (OZ.() 5 Approving Second Amendment to the Development Agreement Concerning the Oaks at San Gabriel Subdivision Page 1 NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: Section 1. The meeting at which this Ordinance was approved was in all things conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551 in effect at the time of its adoption. Section 2. The facts and recitations contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are incorporated by reference herein and expressly made a part hereof, as if copied verbatim. The City Council hereby finds that this Ordinance complies with the Vision Statement of the City of Georgetown 2030 Comprehensive Plan. Section 3. The "Second Amendment to Development Agreement Concerning the Oaks at San Gabriel Subdivision," in substantially the form attached hereto as Attachment 1, is hereby approved by the City Council and incorporated into this Ordinance for all purposes by this reference. Section 4. If any provision of this Ordinance or application thereof to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are hereby declared to be severable. Section 5. The Mayor is hereby authorized to execute this Ordinance and the "Second Amendment to Development Agreement Concerning the Oaks at San Gabriel Subdivision" in substantially the form attached here to as Attachment 1, and the City Secretary to attest. The "Second Amendment to Development Agreement Concerning the Oaks at San Gabriel Subdivision" and this Ordinance shall become effective in accordance with the provisions of the Charter of the City of Georgetown. Attachments: Attachment 1— Second Amendment to Development Agreement Concerning the Oaks at San Gabriel Subdivision" including the following exhibits to the Second Amendment: Exhibit J — Preliminary Lot Layout Exhibit K — Architectural and Masonry Standards Exhibit L — Form of Intersection Signalization Fiscal Security — Letter of Credit Exhibit M — Form of Intersection Signalization Fiscal Security — Escrow Agreement Ordinance No. UU-35 Approving Second Amendment to the Development Agreement Concerning the Oaks at San Gabriel Subdivision Page 2 PASSED AND APPROVED ON FIRST READING ON THE I'l DAY OF APRIL 2020. PASSED AND APPROVED ON SECOND READING ON THE2� DAY OF APRIL 2020. ATTEST: Robyn Densmore, City Secretary APPROVED AS TO FORM: Charlie McNabb, City Attorney THE CITY OF GEORGETOWN: 4,,,& 614'r-- Dale Ross, Mayor Ordinance No. 5 Approving Second Amendment to the Development Agreement Concerning the Oaks at San Gabriel Subdivision Page 3 STATE OF TEXAS § SECOND AMENDMENT TO THE § DEVELOPMENT AGREEMENT COUNTY OF WILLIAMSON § CONCERNING THE § OAKS AT SAN GABRIEL SUBDIVISION CITY OF GEORGETOWN § THIS IS THE SECOND AMENDMENT TO THE DEVELOPMENT AGREEMENT CONCERNING THE OAKS AT SAN GABRIEL SUBDIVISION ("Second Amendment") by and between THE CITY OF GEORGETOWN, a Texas home -rule municipal corporation ("City"), and OAKS AT SAN GABRIEL, L.L.C., a Texas limited liability company ("Oaks"). WHEREAS, Oaks is the developer of that certain property described in Document Nos. 2007035434 and 2007035435 of the Official Records of Williamson County, consisting of approximately 397.768 acres of land (the "Property"); and WHEREAS, on May 10, 2007, City and Oaks entered into that certain "Development Agreement Concerning the Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson County as Document No. 2007040907, and on December 4, 2007 entered into that certain "First Amendment to the Development Agreement Concerning the Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson county as Document No. 2008001039 (together, the "Development Agreement"); and WHEREAS, on May 10, 2007, City and Oaks also entered into that certain "Offsite Utility Construction and Cost Reimbursement Agreement for Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson County as Document No. 2007040908, and on December 4, 2007 entered into that certain "First Amendment to the Offsite Utility Construction and Cost Reimbursement Agreement Concerning the Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson County as Document No. 2008001038, and on June 8, 2010 entered into that certain "Second Amendment to the Offsite Utility Construction and Cost Reimbursement Agreement Concerning the Oaks at San Gabriel Subdivision", recorded in the Official Records of Williamson County as Document No. 2010076610 (collectively, the "Offsite Utility Agreement"); and WHEREAS, on December 4, 2007, City and Oaks also entered into that certain "Consent Agreement", recorded in the Official Public Records of Williamson County as Document No. 2008090290, and on March 1, 2011 entered into that certain "First Amendment to Consent Agreement", recorded in the Official Records of Williamson County as Document No. 2011017941 (together, the "Consent Agreement'), pursuant to which Oaks caused West Williamson County Municipal Utility District No. 1 (the "District') to be created, the boundaries of which contain the Property; and WHEREAS, of even date herewith, City and Oaks are entering into that certain "Amended and Restated Offsite Utility Construction and Cost Reimbursement Agreement Concerning the Oaks at San Gabriel Subdivision" and City, Oaks and the District are entering into that certain "Second Amendment to Consent Agreement'; and (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 1 of 10 WHEREAS, Oaks has applied for an amendment to the Development Agreement to, among other things, increase the number of residential lots that are allowed on the Property to 944, clarify the Open Space definitions and requirements, add architectural and masonry standards, , and to make other changes conforming to the above -referenced amendments to the Offsite Utility Agreement and the Consent Agreement of even date herewith, as more particularly set forth herein. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual agreements set forth herein, and other good and valuable consideration, the receipt, adequacy, and sufficiency of which are all hereby acknowledged, City and Oaks hereby agree to amend the Development Agreement as follows: Article I. 1.0 Section 1.1 of the Development Agreement, pertaining to Defined Terms, is hereby amended and modified to incorporate the following: Section 1.1 Defined Terms. In addition to the terms defined elsewhere in Development Agreement and the Second Amendment, the following terms shall have the following respective meanings where they appear with their initial letters capitalized, unless otherwise more specifically provided to unless the context in which they appear otherwise requires: "Intersection Signalization Fiscal Security" means either an irrevocable letter of credit to be provided by Oaks in favor of the City having a payment amount specified in Section 4.7(d) of the Second Amendment, issued by an issuing bank meeting the City's minimum standards and being in form attached as Exhibit L to the Second Amendment and continuously remaining in place until drawn upon or released by the City under the terms and conditions of the Second Amendment; or a cash deposit received by the City from Oaks in the amount specified in Section 4.7(d) of the Second Amendment, which shall be deposited by the City in an escrow account pursuant to an agreement in the form attached as Exhibit M to the Second Amendment and remain in place until drawn upon or released by the City under the terms and conditions of the Second Amendment. "Residential Development Areas" means the areas of the Property designated as such on the Century Plan Amendment. "Warrant Study" means a study consistent with Texas Department of Transportation ("TxDOT') regulations to determine whether traffic conditions at the intersection of Vista Heights Drive and State Highway 29 meet any federal, state or local minimum standards or "warrants" for placement of traffic signalization improvements. (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 2 of 10 Article II. 2.0 The first sentence of Section 3.2 of the Development Agreement, pertaining to the Number of Residential Lots, is hereby deleted and replaced with the following: Section 3.2 Number of Residential Lots. The number of residential lots allowed on the Property shall not exceed NINE HUNDRED FORTY FOUR (944) and be consistent with the preliminary lot layout attached as Exhibit J, and shall be further restricted as follows: Article 11I. 3.0 Section 4.1(a) of the Development Agreement, pertaining to Zoning, is hereby deleted. Article IV. 4.0 Section 4.2(a) of the Development Agreement, pertaining to Open Space, is hereby amended and modified as follows: (a) Categories of Open Space. Open Space within the Project shall consist of the five (5) following categories: (4) Landscape Lots. This shall include areas designed with landscaping for beautification of the Project that are platted as lots identified for such purposes. These lots shall be conveyed to the homeowners association for the Project. (5) Pond Lots. This shall include areas designed with drainage and pond infrastructure to serve the Project that are platted as lots identified for such purposes. These lots shall be conveyed to the District. Article V. 5.0 Section 4.2(f) of the Development Agreement, pertaining to Transfer of Preserved Open Space, is hereby deleted. Article VI. 6.0 New Section 4.6 of the Development Agreement, pertaining to Architectural and Masonry Standards, is hereby incorporated as follows: Section 4.6 Architectural and Masonry Standards. The architectural and masonry standards applicable to the Residential Development Areas are set forth on new Exhibit K shall apply to the Property, and said standards shall be (W0935305.10}0aks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 3 of 10 incorporated into the restrictive covenants encumbering such Residential Development Areas (the "CCRs"). During the "Development Period" (as defined in the CCRs), in the event the City determines that a homebuilder has installed or constructed improvements on a residential lot within a Residential Development Area that are not in compliance with any of the standards set forth on Exhibil K, the City shall deliver written notice to Oaks identifying the specific deficiency (i.e., masonry requirements, masonry repetition, setbacks or plan repetition) and the street address of the subject residential lot within fifteen (15) days after identification of the noncompliance. Oaks shall deliver a written response to the City that either supplies documentation of compliance with the standard(s) set forth on Exhibit K to the City's reasonable satisfaction or states the corrective measures that Oaks will cause to occur to remedy the noncompliance and the reasonable time period within which such corrective measures will be completed. If Oaks should fail to timely respond to a written notice from the City as set forth above and/or, in instances of noncompliance, cause to be completed corrective actions within the reasonable time period provided to the City in such written response, the City may withhold the issuance of plumbing permits and other City authorizations within the phase of the Project in which the subject residential lot is located until such time the documentation is provided or corrective measures are completed. Article VII. 7.0 New Section 4.7 of the Development Agreement, pertaining to Traffic Signalization, is hereby incorporated as follows: Section 4.7. Traffic Si nalizatian. Oaks shall design and build, or cause to be designed and built, at no cost to the City, traffic signalization, intersection and roadway improvements at the intersection of Vista Heights Drive and State Highway 29 located in Williamson County, Texas (the "Intersection") as and when required by TxDOT, will deliver to the City or to TxDOT any security (bond or advance funding agreement) required by TxDOT or the City, as applicable, and will dedicate to TxDOT any right-of-way required by TxDOT, as follows: (a) The City acknowledges that Oaks performed a Warrant Study of the Intersection dated March 1, 2018 and transmitted a copy of same to the City prior to the Effective Date of the Second Amendment. (b) On or before 5:00 PM on the date this is one (1) year after the Effective Date of the Second Amendment, Oaks shall, at no cost to the City, deliver to the City a copy of an updated Warrant Study of the Intersection. (c) If the Warrant Study required under Section 4.7(b) of the Second Amendment indicates traffic signal improvements are not then required for the Intersection, Oaks shall update that Warrant Study once (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 4 of 10 every 365 days, until such time, if any, as a Warrant Study of the Intersection indicates traffic signalization improvements are "warranted" (i.e., determined by TxDOT to be necessary and required). (d) If a Warrant Study obtained under Section 4.7(b) or (c) indicates traffic signalization improvements are "warranted" at the Intersection, then within 60 days after the date of such Warrant Study, Oaks shall provide to the City an engineer's cost estimate approved by TxDOT of those traffic signalization improvements TxDOT requires Oaks to provide for the Intersection, along with Intersection Signalization Fiscal Security equal to the amount that is 110% of the amount set out in such cost estimate. (e) If a Warrant Study obtained under Section 4.7(b) or (c) indicates traffic signalization improvements are "warranted" at the Intersection but the required traffic signalization improvements are not constructed within 1 year after the date of the Intersection Signalization Fiscal Security held by the City, Oaks shall obtain and submit to the City an updated engineer's cost estimate of the traffic signalization improvements TxDOT requires Oaks to provide, and an updated Intersection Signalization Fiscal Security equal to the amount that is 110% of the amount set out in such updated cost estimate. This process shall continue annually until the required traffic signalization improvements are completed at the Intersection. (f) As between Oaks and the City, Oaks is responsible for paying the cost of and building or causing to be built the traffic signalization improvements at the Intersection required by TxDOT. (g) As an alternative to delivering Intersection Signalization Fiscal Security to the City as required under Section 4.7(d) or (e) after receipt of a Warrant Study that indicates construction of traffic signalization improvements at the Intersection is "warranted," Oaks may deliver to the City: (a) an engineer's cost estimate approved by TxDOT for the traffic signalization improvements TxDOT requires Oaks to provide; and (b) documentation that (y) TxDOT and Oaks have entered into a contract pursuant to which Oaks will perform or fund the design and construct the applicable traffic signalization improvements; and (z) Oaks has deposited with TxDOT all funds and/or fiscal security (if any) required under that contract. If Oaks delivers the items described in the prior sentence to the City after Oaks has posted Intersection Signalization Fiscal Security with the City under Section 4.7(d) or (e), the City will return the Intersection Signalization Fiscal Security to Oaks within 30 days thereafter. (h) At any time when a Warrant Study shows traffic signalization improvements at the Intersection are "warranted", but Oaks {W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 5 of 10 has not either completed same or delivered to the City the documentation required under Section 4.7(g), the City may give Oaks notice that if either such improvements are not completed or the documentation required under Section 4.7(g) is not delivered to the City within 90 days after the date of such notice, the City intends to use and/or draw on the Intersection Signalization Fiscal Security held by the City under Section 4.7(d) or (e) and use such sums to design and build the applicable traffic signalization improvements. Upon the City's completion of the applicable traffic signalization improvements the City will return any unused sums to Oaks. Article VIII. 8.0 The first sentence of Section 5.1 of the Development Agreement, pertaining to Annexation, is hereby deleted and replaced with the following: Section 5.1 Annexation. The City shall have the right, but not the obligation, to annex the Property or portions thereof prior to the expiration of the term of this Agreement if construction of all public infrastructure required under this Agreement and the Offsite Utility Construction and Cost Reimbursement Agreement for Oaks at San Gabriel Subdivision (as each may be amended from time to time) has been 90% completed and the West Williamson County Municipal Utility District No. 1 (the "District") has issued all of the bonds authorized under the Consent Agreement between Oaks and the City. Article IX. 9.0 Section 6.5(a) of the Development Agreement, pertaining to Water Service, is hereby deleted and replaced with the following: (a) Water services will be provided to the Property by the City. Article X. 10.0 First Amended Exhibit I of the Development Agreement is hereby deleted. Article VII of the Development Agreement, pertaining to the Municipal Utility District, is hereby deleted and replaced with the following: Municipal UtilityDistrict The Consent Agreement between Oaks and the City is related to the creation of the District on the Property. The purpose of the District will be to issue bonds an amount equivalent to the "Bond Limit Amount", as addressed in the Consent Agreement, for eligible expenses incurred by Oaks relating to water, wastewater, drainage and recreational facilities and fees; the creation and operation costs of the District; an amount equivalent to the City's "Master Development Fee," as addressed in the Consent Agreement; and interest costs related to this Project incurred by Oaks. (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 6 of 10 Arfirla X1 11.0 Section 9.7 of the Development Agreement, pertaining to Notice, is hereby deleted and replaced with the following: Section 9.7 Notice. All notices, requests or other communications required or permitted by this Agreement shall be in writing and shall be sent by (i) by overnight courier or hand delivery, or (ii) certified mail, postage prepaid, return receipt requested, and addressed to the parties at the following addresses: City: City of Georgetown Attn: Assistant City Manager 808 Martin Luther King Jr. St. Georgetown, Texas 78626 Phone: (512) 930-3652 with copies to: City of Georgetown City Attorney P.O. Box 409 Georgetown, Texas 78627 Phone: (512) 930-3652 Oaks: Oaks at San Gabriel, L.L.C. c/o Hearthstone, Inc. 24151 Ventura Boulevard Calabasas, California 91302 Attn: Steven C. Porath Phone: (818) 385-3697 with copies to: Oaks at San Gabriel, L.L.C. c/o Hearthstone, Inc. 24151 Ventura Boulevard Calabasas, California 91302 Attn: Todd Rosa Phone: (949) 954-1923 with copies to: Oaks at San Gabriel, L.L.C. c/o Harris & Straub, LLC 311 University Drive, Suite 101 Fort Worth, Texas 76107 Attn: James R. Harris Phone: (817) 332-0027 with copies to: Oaks at San Gabriel, L.L.C. c/o Harris & Straub, LLC 4408 Spicewood Springs Road (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 7 of 10 Austin, Texas 78759 Attn: Joseph W. Straub Phone: (512) 231-1555 with copies to: Armbrust & Brown, PLLC 100 Congress Avenue, Suite 1300 Austin, Texas 78701 Attn: Kevin M. Flahive Phone: (512) 435-2333 Article XII. 12.0 Miscellaneous: 12.1 Except as specifically amended herein, all provisions of the Development Agreement are hereby acknowledged and ratified by the parties hereto to be in full force and effect. 12.2 Unless defined differently herein or the context clearly requires otherwise, each capitalized term used in this Second Amendment shall have the meaning ascribed to such term in the Development Agreement. 12.3 This Second Amendment may be executed in several counterparts, each of which shall be deemed an original. The signatures to this Second Amendment may be executed on separate pages, and when attached to this Second Amendment shall constitute one (1) complete document. 12.4 The parties agree that this Second Amendment shall be recorded in the Real Property Records of Williamson County, Texas at the expense of Oaks. Exhibits to Second Amendment: Exhibit J — Preliminary Lot Layout Exhibit K — Architectural and Masonry Standards Exhibit L — Form of Intersection Signalization Fiscal Security — Letter of Credit Exhibit M — Form of Intersection Signalization Fiscal Security — Escrow Agreement [Signature Pages and Acknowledgements Follow] (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 8 of 10 CITY OF GEORGETOWN Dale Ross, Mayor ATTEST: By:, Robyn Densmore, City Secretary APPROVED AS TO FORM: Charlie McNabb, City Attorney OAKS AT SAN GABRIEL, L.L.C., a Texas limited liability company By: HEARTHSTONE, INC., a California corporation, d/b/a in Texas as Hearthstone Advisors, Inc., its Manager LN Steven C. Porath, Senior Vice President & General Counsel APPROVED AS TO FORM: By: Kevin M. Flahive, Attorney for Oaks at San Gabriel, L.L.C. [Acknowledgements Follow] IW0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 9 of 10 THE STATE OF CALIFORNIA § COUNTY OF LOS ANGELES § On 2020, before me, a Notary Public, personally appeared Steven C. Porath who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Notary Public [Seal] STATE OF TEXAS § § CORPORATE ACKNOWLEDGEMENT COUNTY OF WILLIAMSON § This instrument was acknowledged before me on this day of , 2020, by Dale Ross, a person known to me, in his capacity as Mayor of the City of Georgetown, Texas, a Texas home -rule municipal corporation, on behalf of said municipality. [SEAL] Notary Public, State of Texas (W0935305.10)Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Page 10 of 10 i FM 3405 338 PROJECT SITE I SEWARD i�wrnnH _ . � VGVRVCI VI C- :��� 5 0 MI1�5S SH 29 �� L ANDFR� ~ , R LOCATION MAP (NOT TO SCALE) PLATTED/CONSTRUCTED Phase SFR Lois Common Area Lots 1A 0 1 1B 79 4 2 62 0 3 20 0 4 0 1 5 85 3 7 52 1 8 70 3 9 65 2 10 80 2 14 79 1 15 85 2 16 4 0 TOTAL 681 20 FUTURE 6 63 1 11 57 TBD 12 40 TBD 13 103 TBD TOTAL 263 TBD PROJECT TOTAL SFR Lots Common Area Lots TOTAL 944 21+ BEE, OAKS AT SAN GABRIEL 101 W. LOUIS BL HENNA VD, SUITE 400 78728 PRELIMINARY LOT LAYOUT Ai79-040STIN, rxww.bg TEL: 572-878-Q4t)Q • www.6geinc.com TBPE Registration No. F-1046 "EXHIBIT J" EXHIBIT K ARCHITECTURAL AND MASONRY STANDARDS I. Masonry Requirements, Foundation Shield in . The exterior of each primary dwelling structure shall be at least sixty percent (60%) masonry construction. In addition to the preceding requirement, on all single-family lots ("Lots") that abut Vista Heights Drive (whether along the side or rear of the Lot), the exterior of each primary dwelling structure (both first and second levels) shall be one hundred percent (100%) masonry construction. Further, each exterior (both first and second levels) of a primary dwelling structure that faces a public or private right-of- way, including both exteriors on a corner Lot that face the public or private right-of-way, shall be of one hundred percent (100%) masonry construction. In the event of any question as to whether an exterior faces a public or private right-of-way or abuts Vista Heights Drive, the determination of the homeowners association's architectural review committee or similar authority ("Architectural Reviewer") shall be conclusive. Only brick, stucco and natural stone shall be considered masonry for purposes of this provision, and although stucco shall be considered masonry, stucco shall not be used to satisfy more than fifty percent (50%) of the masonry requirement for any primary dwelling. No masonry with gray color tones other than mortar will be permitted. The Architectural Reviewer, in the Architectural Reviewer's discretion, may approve the use of "decorative siding" (fibre -cement or equivalent material only): (i) on up to twenty percent (20%) of the front elevation of a two (2) story primary dwelling structure; or (ii) on front gables above plate line on a one (1) story primary dwelling structure. "Decorative siding" includes vertical board and batten, shakes, scallops and other decorative siding facades as may be approved by the Architectural Reviewer on a case by case basis in the Architectural Reviewer's discretion. In no event shall horizontal lap siding be approved as "decorative siding". All siding material shall be manufactured out of fibre -cement (e.g., Hardi-Plank or Cemplank) or an equivalent material approved by the Architectural Reviewer. Exposed portions of the foundation on each front elevation, and side elevation visible from any street, must be concealed by extending the exterior masonry to within at least twenty- four inches (24") of the finished grade; provided, however, if the exterior of the elevation adjacent to the exposed foundation is constructed of stucco, the Architectural Reviewer will have the authority to require the use of masonry, in a color approved in advance by the Architectural Reviewer, to conceal the exposed portion of the foundation. II. Plan and Elevation Repetition. The Architectural Reviewer may, in its sole and absolute discretion, deny a plan and elevation combination proposed for a particular Lot if a substantially similar plan and elevation combination exists on a Lot in close proximity to the Lot on which the plan and elevation combination is proposed. The Architectural Reviewer may adopt additional requirements concerning substantially similar plans and/or elevations constructed in proximity to each other. For Example: • Plan and elevation combination can be repeated every third Lot (example: Combination A, Combination B, Combination C, and Combination A). (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit K — Architectural and Masonry Standards Page 1 of 3 _ =A ■ Across the Street: Same plan and elevation combination cannot be placed on a Lot across the street or diagonal from any other plan and elevation combination (example above: Combination B). III. Brick Color and Masonry Stone Repetition. The Architectural Reviewer may, in its sole and absolute discretion, deny proposed brick or masonry for a particular Lot if substantially similar brick or masonry exists on a Lot in dose proximity to the Lot on which the brick or masonry is proposed. The Architectural Reviewer may adopt additional requirements concerning substantially similar brick or masonry constructed in proximity to each other. For Example: • Similar brick or masonry; can be repeated every third Lot (example: Plan A, Plan B, Plan C, and Plan A). ■ Across the Street: Same brick or masonry cannot be placed on a Lot across the street or diagonal from any other brick or masonry; (example above: Brick B). IV. Siting/Setbacks. The following setbacks shall apply to each Lot other than a corner Lot: • Front Lot line: 20 feet Rear Lot line: 10 feet Side Lot line: 6 feet The following setbacks shall apply to each comer Lot: • Front Lot line: 20 feet • Rear Lot line: 10 feet • Side Lot line: Side of Lot adjacent to, or facing the street: 15 feet ■ Side Lot line: Side of Lot adjacent to, or facing any other Lot: 6 feet • Comer lots that share a common side line with a landscape easement on the street side of the lot are only required to have a 6 foot setback from the landscape easement. (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit K — Architectural and Masonry Standards Page 2 of 3 In the event of a dispute as to whether a Lot is considered a corner lot hereunder, the determination of the Architectural Reviewer shall be final and conclusive. Notwithstanding any provision to the contrary herein, a covered porch shall be permitted to extend to a point no closer than ten feet (10') from the rear boundary line of a Lot. The Architectural Reviewer must approve the encroachment of any flatwork, i.e. driveway, porch, etc. over the side building setbacks. The Architectural Reviewer reserves the right to stipulate additional building or Improvement setbacks attributable to any Lot. The Architectural Reviewer further reserves the right to grant variances to the setbacks set forth herein in accordance with the terms hereof, as determined in the sole and absolute discretion of the Architectural Reviewer; provided, however, the Architectural Reviewer shall not a grant a variance for any Lot that permits the construction of a garage thereon, the front fagade of which is located less than twenty feet (20') from the front boundary line of such Lot. (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit K — Architectural and Masonry Standards Page 3 of 3 EXHIBIT L FORM OF INTERSECTION SIGNALIZATION FISCAL SECURITY — LETTER OF CREDIT Irrevocable Letter of Credit Issuance Date: Irrevocable Letter of Credit No. Beneficiary: City of Georgetown, a Texas home rule municipality Attn: Assistant City Manager 808 Martin Luther King Jr. St. Georgetown, Texas 78626 Owner/Applicant: Oaks at San Gabriel, L.L.C. c/o Hearthstone, Inc. 24151 Ventura Boulevard Calabasas, California 91302 Stated Amoun Issuer: Name Address I Address 2 City, State, Zip Code Phone Fax Expiration Date:, U.S. DOLLARS 20 at 4:00 P.M. Central Standard Time. At the request and account of OWNER/APPLICANT, ISSUER hereby opens in favor of BENEFICIARY our Irrevocable Letter of Credit for the STATED AMOUNT available by BENEFICIARY'S draft at sight drawn on ISSUER purportedly signed by either BENEFICIARY'S City Manager or Assistant City Manager. This Letter of Credit authorizes BENEFICIARY to draw on ISSUER in amounts which in the aggregate shall not exceed the STATED AMOUNT, which represents the required amount of the traffic signal fiscal security for the Vista Heights Drive and State Highway 29 Intersection (as described in that certain "Second Amendment to Development Concerning the Oaks at San Gabriel Subdivision" between OWNER/APPLICANT and BENEFICIARY dated to be effective on , (the "AGREEMENT")) pertaining to design and construction of the Vista Heights Drive and State Highway 29 Intersection. (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit L - Form of Intersection Signalization Fiscal Security — Letter of Credit Page 1 of 4 Funds under this Irrevocable Letter of Credit shall be made available to the BENEFICIARY on receipt by the ISSUER of a Sight Draft in the form attached to this Letter of Credit as "Annex A", accompanied by the original of this Letter of Credit, and a Certificate in the form attached to this Letter of Credit as "Annex B" dated and signed by a purported authorized representative of the BENEFICIARY, with such signature acknowledged, stating that the BENEFICIARY is entitled to draw under this Letter of Credit. No further substantiation of the claim(s) shall be required. ISSUER shall be entitled to accept a sight draft and certificate describe above under the terms of this Letter of Credit from the City Manager or the Assistant City Manager of the BENEFICIARY, with such signature acknowledged, without any obligation or duty to verify the authority or identity of the person presenting the sight draft or certificate. Partial drawings are permitted only per the terms of the AGREEMENT, but not more frequently than once per month. Upon receipt of one or more Sight Drafts described above, Issuer shall disburse the funds to the City of Georgetown, Texas, Attn: Assistant City Manager, 808 Martin Luther King Jr. St., Georgetown, Texas 78626 , in the amount stated in the Sight Draft. Such demand(s) will be honored if presented in person or by facsimile transmission on or before 4:00 o'clock pm Central Standard Time before the expiration date of this irrevocable letter of credit. If demand is presented before 10:00 a.m. Central Standard Time, funds must be received before 2:00 p.m. Central Standard Time the same day. If demand is presented after 10:00 a.m. Central Standard Time, funds must be received before 2:00 p.m. Central Standard Time the next business day. Funds may be received by wire transfer. This Irrevocable Letter of Credit shall be governed by the laws of the State of Texas and venue for any disputes shall be in Williamson County, Texas. Issuer shall provide written notification to the City of Georgetown, Texas, Attn: Assistant City Manager, 808 Martin Luther King Jr. St., Georgetown, Texas 78626, at least forty-five (45) calendar days prior to the expiration of this Irrevocable Letter of Credit as advice of the pending expiration. It is a condition of this Irrevocable Letter of Credit that it shall be deemed automatically extended without amendment for a period of one (1) year from the present or any future Expiration Date. ISSUER: (Authorized Signature) By: Name: Title: (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit L - Form of Intersection Signalization Fiscal Security — Letter of Credit Page 2 of 4 ANNEX A TO TRAFFIC SIGNAL FISCAL SECURITY DRAW CERTIFICATE DATE: TO: Issuer: Name Address I Address 2 City, State, Zip Code Phone Fax REF. NO. FROM: Beneficiary: City of Georgetown, a Texas home rule municipality Attn: Assistant City Manager 808 Martin Luther King Jr. St. Georgetown, Texas 78626 AT SIGHT, PAY TO THE ORDER OF THE CITY OF GEORGETOWN, TEXAS, U.S. DOLLARS ($ ) drawn under (name of issuer) Irrevocable Standby Letter of Credit No. dated 20 BENEFICIARY STATE OF TEXAS § COUNTY OF WILLIAMSON § CITY OF GEORGETOWN, TEXAS (Authorized Signature) By: Name: Title: This instrument was acknowledged before me on the 20 by , Texas, a home -rule city, on behalf of the City. (seal) _ day of , of the City of Georgetown, Notary Public Signature (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit L - Form of Intersection Signalization Fiscal Security — Letter of Credit Page 3 of 4 ANNEX B TO TRAFFIC SIGNAL FISCAL SECURITY DRAW CERTIFICATE DATE: TO: Issuer: Name Address I Address 2 City, State, Zip Code Phone Fax Ladies and Gentlemen: LETTER OF CREDIT. NO. FROM: Beneficiary: City of Georgetown, a Texas home rule municipality Attn: Assistant City Manager 808 Martin Luther King Jr. St. Georgetown, Texas 78626 The undersigned, as authorized representative of Beneficiary herby certifies to you with reference to Letter of Credit No. that (check applicable): ❑ The Letter of Credit will expire in 45 days and is not being renewed or replaced; or ❑ Owner/Applicant has defaulted on its obligations under the AGREEMENT pertaining to Vista Heights Drive and State Highway 29 Intersection (described in the AGREEMENT); or ❑ The Completion of the Vista Heights Drive and State Highway 29 Intersection (as described in the AGREEMENT) has occurred. STATE OF TEXAS § COUNTY OF WILLIAMSON § This instrument was acknowledged before me on the 20_ by , Texas, a home -rule city, on behalf of the City. (seal) day of , of the City of Georgetown, Notary Public Signature (W0935305.101 Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit L - Form of Intersection Signalization Fiscal Security — Letter of Credit Page 4 of 4 Exhibit M FORM OF INTERSECTION SIGNALIZATION FISCAL SECURITY — ESCROW AGREEMENT ESCROW AGREEMENT [Traffic Signalization, Intersection & Roadway Improvements] The parties to this Escrow Agreement (this "Agreement"), dated effective as of , 202_ (the "Effective Date"), are OAKS AT SAN GABRIEL, L.L.C., a Texas limited liability company ("Oaks"), and THE CITY OF GEORGETOWN, a Texas home -rule municipal corporation (the "City"). RECITALS: A. Pursuant to the "Oaks at San Gabriel Traffic Impact Analysis" prepared for the City by Alliance Transportation Group, Inc., as updated on November 17, 2007 (the "TIA"), Oaks is obligated to fund the design, permitting and construction of traffic signalization, intersection and roadway improvements at the intersection of Vista Heights Drive and State Highway 29 in Williamson County, Texas (the "Improvements"), once the Texas Department of Transportation ("TxDOT") has determined that the traffic generated by the Oaks at San Gabriel Subdivision necessitates the construction of such Improvements (i.e., such Improvements are "warranted"). B. Pursuant to the "Second Amendment to the Development Agreement Concerning the Oaks at San Gabriel Subdivision" entered into by and between Oaks and the City on , 2020 and recorded under Document No. in the Official Public Records of Williamson County, Texas (as it may be further amended from time to time, the "Second Amendment"), within sixty (60) days after TxDOT has determined that the Improvements are "warranted", Oaks shall: (i) provide to the City an engineer's cost estimate of the Improvements approved by TxDOT; and (ii) either (a) deposit fiscal security with the City in an amount equal to 110% of the amount set out in such cost estimate in the form of either a letter of credit or cash pursuant to an escrow agreement, or (b) deliver to the City documentation that (1) TxDOT and Oaks have entered into a contract pursuant to which Oaks will perform or fund the design and construction of the Improvements, and (2) Oaks has deposited with TxDOT all funds and/or fiscal security (if any) required under that contract. C. Pursuant the Warranty Study (as defined in the Second Amendment) dated effective 202_, TxDOT has determined that the Improvements are now "warranted". D. The engineer's cost estimate of the Improvements obtained by Oaks and approved by TxDOT provides that the estimated cost of the Improvements is $ (the "Initial Estimated Cost"). E. Oaks has elected to deposit cash with the City in an amount equal to 110% of the Initial Estimated Cost, which is $ (as such amount may be adjusted pursuant (W0935305.101 Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit M - Form of Intersection Signalization Fiscal Security — Escrow Agreement Pagel of 5 to Paragraph 4 below, the "Cash Security"), to be held in escrow as fiscal security for the completion of the Improvements in accordance with this Agreement. AGREEMENTS: IN CONSIDERATION of the mutual covenants set forth in this Agreement, the parties agree as follows: 1. Recitals Incorporated. The above Recitals and the Second Amendment, and all defined terms therein, are incorporated into this Agreement for all purposes. 2. Construction ol'_ lmprovements. Oaks covenants to cause the Improvements to be designed, permitted and constructed, at Oaks' expense, and to obtain the acceptance of the Improvements by TxDOT on or before the date that is 1 year after the Effective Date. The plans and specifications for the Improvements as finally approved by TxDOT are referred to in this Agreement as the "Approved Construction Plans". 3. Deposit of Cash Security. The Cash Security must be held by the City in an interest -bearing account in compliance with the City's investment policies. All interest earned on the Cash Security will be considered a part of the Cash Security. 4. Adjustment of Cash Security. If, upon the date that is 1 year after the Effective Date, and on or before the anniversary of such date each year thereafter during the term of this Agreement, Oaks has not yet caused the completion of the Improvements and TxDOT's acceptance of the Improvements in accordance with this Agreement, Oaks is required under the Second Amendment to obtain and submit to the City an updated engineer's cost estimate of the Improvements (each, an "Updated Cost Estimate"). Within 30 days after the City's approval of each Updated Cost Estimate, the parties shall cause the amount of the Cash Security held in escrow in accordance with this Agreement to be adjusted to an amount equal to 110% of the Updated Cost Estimate. 5. Release of Cash Security. The Cash Security will be released to Oaks and this Agreement will terminate upon the earlier to occur of. (a) Oaks' causing the completion of the Improvements in accordance with the Approved Construction Plans and satisfaction of all TxDOT requirements to cause TxDOT's acceptance of the Improvements for ownership, operation and maintenance, and provision of documentation of same to the City; or (b) Oaks' delivery to the City of documentation that (i) TxDOT and Oaks have entered into a contract pursuant to which Oaks will perform or fund the design and construction of the Improvements, and (ii) Oaks has deposited with TxDOT all funds and/or fiscal security (if any) required under that contract. 6. City's Use of Cash Security. If at any time during the term of this Agreement, Oaks has not caused the completion of the Improvements and TxDOT's acceptance of the Improvements in accordance with this Agreement, the City may give written notice to Oaks of such failure. If Oaks then fails to cause the completion of the Improvements and TxDOT's acceptance of the Improvements within 90 days after the date of such notice, the City may draw upon and use the Cash Security to cause the completion of the Improvements and TxDOT's (W0935305.10) Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit M - Form of Intersection Signalization Fiscal Security — Escrow Agreement Page 2 of 5 acceptance of the Improvements. Any portion of the Cash Security which is not used by the City to cause the completion of the Improvements and TxDOT's acceptance of the Improvements, will be released to Oaks within 30 days after TxDOT's acceptance of the Improvements, whereupon this Agreement will terminate. 7. Remedies. Should a party hereto fail to perform an obligation hereunder in accordance with the terms, provisions and conditions of this Agreement ("Failing Party"), then the other party ("Affected Party") may provide written notice of such failure to the Failing Party and the Failing Party shall thereupon have 10 days to cure such failure. If such failure has not been cured after the expiration of such 10-days period, then the Affected Party may elect, within 30 days after the expiration of the 10-day cure period, to (i) institute suit for specific performance against the Failing Party to compel performance of the obligation, and the costs of compelling performance (including, without limitation, reasonable attorneys' fees and expenses) shall be reimbursable to the prevailing Affected Party in such litigation; or (ii) pursue the recovery of any and all actual (but not speculative, consequential or punitive) damages suffered by the Affected Party as a result of the Failing Party's breach of its obligations hereunder (including reasonable attorneys' fees and expenses). 8. Assignability. The benefits and burdens of this Agreement are binding on and inure to the benefit the City and its successors and assigns, and on the Oaks, its successors and assigns. 9. Notice. Any notice required or permitted by this Agreement must be in writing and is deemed delivered when personally delivered or three (3) days after it is deposited with the U.S. Postal Service, postage prepaid, certified with return receipt requested, and addressed as follows: If to Oaks: Oaks at San Gabriel, L.L.C. c/o Hearthstone, Inc. 24151 Ventura Boulevard Calabasas, California 91302 Attn: Steven C. Porath Phone: (818) 385-3697 with copies to: Oaks at San Gabriel, L.L.C. c/o Hearthstone, Inc. 24151 Ventura Boulevard Calabasas, California 91302 Attn: Todd Rosa Phone: (949) 954-1923 Oaks at San Gabriel, L.L.C. c/o Harris & Straub, LLC 311 University Drive, Suite 101 Fort Worth, Texas 76107 Attn: James R. Harris Phone: (817) 332-0027 (W0935305.101 Oaks at San Gabriel (Rothe]] Tract) Second Amendment to Development Agreement Exhibit M - Form of Intersection Signalization Fiscal Security — Escrow Agreement Page 3 of 5 Oaks at San Gabriel, L.L.C. c/o Harris & Straub, LLC 4408 Spicewood Springs Road Austin, Texas 78759 Attn: Joseph W. Straub Phone: (512) 231-1555 Armbrust & Brown, PLLC 100 Congress Avenue, Suite 1300 Austin, Texas 78701 Attn: Kevin M. Flahive Phone: (512) 435-2333 If to the City: City of Georgetown Attn: Assistant City Manager 808 Martin Luther King Jr. St. Georgetown, Texas 78626 Phone: (512) 930-3652 with copy to: City of Georgetown City Attorney P.O. Box 409 Georgetown, Texas 78627 Phone: (512) 930-3652 The parties may, from time to time, change their respective addresses for purposes of notice listed above. A party's change of address is effective when notice of the change is provided to the other party in accordance with this Paragraph. 10. Governing Law and Venue. Notwithstanding any conflict of laws provisions, the parties agree that the terms and provisions of this Agreement will be governed by and construed in accordance with the laws of the State of Texas and the United States of America from time to time in effect, and that Williamson County, Texas will be the proper place of venue for any suit under this Agreement. 11. Amendment. Any oral representations or modifications concerning this Agreement have no force or effect unless there is a subsequent written modification executed by duly authorized representatives of both parties. 12. CounteMa_rts. This Agreement may be executed in several counterparts, each of which shall be deemed an original. The signatures to this Agreement may be executed on separate pages, and when attached to this Agreement shall constitute one (1) complete document. [SIGNATURE PAGE FOLLOWS] (W0935305.101 Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit M - Form of Intersection Signalization Fiscal Security — Escrow Agreement Page 4 of 5 Executed by the parties to be effective as of the Effective Date. CITY OF GEORGETOWN By: Dale Ross, Mayor ATTEST: By: Robyn Densmore, City Secretary APPROVED AS TO FORM: By: Charlie McNabb, City Attorney OAKS AT SAN GABRIEL, L.L.C., a Texas limited liability company By: HEARTHSTONE, INC., a California corporation, d/b/a in Texas as Hearthstone Advisors, Inc., its Manager Steven C. Porath, Senior Vice President & General Counsel APPROVED AS TO FORM: Kevin M. Flahive, Attorney for Oaks at San Gabriel, L.L.C. (W0935305.10} Oaks at San Gabriel (Rothell Tract) Second Amendment to Development Agreement Exhibit M - Form of Intersection Signalization Fiscal Security — Escrow Agreement Page 5 of 5