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HomeMy WebLinkAboutRES 050923-5.L - PID Finance & ReimbursementRESOLUTION NO. b5bri Z3.6. L A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, ADOPTING THE PID FINANCING AND REIMBURSEMENT AGREEMENT FOR THE BLUFFVIEW PUBLIC IMPROVEMENT DISTRICT BETWEEN THE CITY OF GEORGETOWN AND LAMY 2243, Ltd.; ADOPTING THE PRELIMINARY SERVICE AND ASSESSMENT PLAN FOR THE BLUFFVIEW PID; REPEALING CONFLICTING RESOLUTIONS AND ORDINANCES; INCLUDING A SEVERABILITY CLAUSE; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, on March 22, 2022 the City Council adopted Resolution No. 032222-AA creating the Bluffview Public Improvement District (`Bluffview PID"). WHEREAS, on even date herewith, the City Council adopted a zoning ordinance creating a planned unit development for the Bluffview PID, and an ordinance approving the Development and Authorized Improvements Agreement pertaining to the Bluffview PID. WHEREAS, the City Council finds that adopting the attached PID Financing and Reimbursement Agreement for the Bluffview Public Improvement District between the City of Georgetown and Lamy 2243, Ltd., and adopting the Preliminary Service and Assessment Plan for the Bluffview Public Improvement District attached to that agreement, are necessary and desirable, and compliant with applicable State law, as set out herein. NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS: Section 1. The meeting at which this resolution was approved was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 2. The facts and recitations contained in the preamble of this resolution 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. Section 3. The PID Financing and Reimbursement Agreement for the Bluffview Public Improvement District between the City of Georgetown and Lamy 2243, Ltd., including all exhibits and attachments to that agreement, which are set forth in full in Attachment 1 to this Resolution, are hereby approved and adopted by the City Council. Section 4. All resolutions and ordinances that conflict with the provisions of this resolution are hereby repealed, and all other resolutions and ordinances of the City not in conflict with the provisions of this resolution shall remain in full force and effect. Section 5. If any provision of this resolution, or application thereof, to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or Resolution Number: 05CP�' , 2) — $. L Page I of 2 Subject: PID Financing and Reimbursement Agreement and PSAP (Bluffview PID) Date Approved: M \ , 'Ms application thereof, of this resolution, which can be given effect without the invalid provision or application, and to this end the provisions of this resolution are hereby declared to be severable. Section 6. The Mayor is hereby authorized to sign this resolution and the attached agreement, and the City Secretary to attest. This resolution shall become effective and be in fall force and effect immediately in accordance with the provisions of the City Charter of the City of Georgetown. Attachment 1: PID Financing and Reimbursement Agreement for the Bluffview Public Improvement District between the City of Georgetown and Lamy 2243, Ltd. (including all exhibits and attachments) PASSED AND APPROVED on the 91h day of May, 2023. ATTEST: OF GEORGETOWN: Robyn Den ore, ity Secretary Josh Schroeder,,Mayor APPROVED AS TO FORM: kye N sson, C4 Attorney Resolution Number: C6C 23 - 5. L- Page 2 of 2 Subject: PID Financing and Reimbursement Agreement and PSAP (Bluffview PID) Date Approved: KU-% q 1 U2-5 PID FINANCING AND REIMBURSEMENT AGREEMENT BLUFFVIEW PUBLIC IMPROVEMENT DISTRICT between THE CITY OF GEORGETOWN and LAMY 2243, Ltd. This PID Financing and Reimbursement Agreement (this "Agreement") is entered into by Lamy 2243, Ltd., a Texas limited partnership (the "Developer") and the City of Georgetown, Texas (the "City"), a Texas home rule municipality, and made to be effective on the latest date accompanying the signature lines below (the "Effective Date"). The Developer and the City are individually referred to as a "Party" and collectively as the "Parties." ARTICLE 1. RECITALS 1.01 WHEREAS, capitalized terms used in this Agreement, unless otherwise defined, shall have the meanings given to them in Article 3; 1.02 WHEREAS, the Developer is a Texas limited partnership; 1.03 WHEREAS, the City is a Texas home -rule municipality; 1.04 WHEREAS, on March 22, 2022, after notice and hearing in accordance with Chapter 372, Texas Local Government Code, as amended (the "PID Act"), the City Council passed and approved Resolution No. 032222-AA (the "PID Creation Resolution") authorizing the creation of the Bluffview Public Improvement District (the "PID" or the "District"), covering approximately 68.080 contiguous acres within the City's corporate limits, which land is described in the PID Creation Resolution (the "Properly'), and the PID became effective with the adoption of the PID Creation Resolution on March 22, 2022; 1.05 WHEREAS, on even date herewith, the City Council passed and approved Ordinance No. ZOZ?J _ 2% approving the Development and Authorized Improvements Agreement (the "Development and Authorized Improvements Agreement"); 1.06 WHEREAS, the Development and Authorized Improvements Agreement governs development of the land in the PID (and adjacent land not within the PID), and identifies the final Authorized Improvements to be designed, constructed, and installed by or at the direction of the Parties that confer a special benefit on the Assessed Property; 1.07 WHEREAS, it is intended that the Property will be developed as a mixed - residential development in accordance with Ordinance No. Z,023-2q(the "PUD Ordinance") approved by City Council on even date herewith; 1.08 WHEREAS, the PUD Ordinance establishes a PUD zoning district for the Property with base districts of Residential Single Family (RS) and Low Density Multi -family (MF- 1) (each as defined in the PUD Ordinance); 1.09 WHEREAS, the PSAP attached hereto as Exhibit "G" contains a draft of the estimated Actual Costs of the Authorized Improvements, and the SAP will set forth the estimated Actual Costs of the Authorized Improvements; 1.10 WHEREAS, the Assessed Property is being developed and financed in phases or Improvement Areas; 1.11 WHEREAS, this Agreement shall apply to all phases and no additional reimbursement agreement shall be required for future phases or Improvement Areas; 1.12 WHEREAS, the attached PSAP contains a draft of determinations and apportionments of the Actual Costs of the Authorized Improvements to the Assessed Property, and the SAP will determine and apportion the Actual Costs of the Authorized Improvements to the Assessed Property, which Actual Costs will represent the special benefit that the Authorized Improvements will confer upon the Assessed Property as required by the Act; 1.13 WHEREAS, the Assessment Ordinance will levy Assessments against the Assessed Property in the amounts set forth on the Assessment Roll to cover the Actual Costs of the Authorized Improvements; 1.14 WHEREAS, the PSAP provides an estimate of the Assessments, including the Annual Installments thereof, that will be due and payable as described in the PSAP; the final Assessments, including the Annual Installments thereof, will be due and payable as described in the SAP; 1.15 WHEREAS, Annual Installments shall be billed and collected by the City or its designee; 1.16 WHEREAS, Assessment Revenue from the collection of Assessments, including the Annual Installments thereof, shall be deposited (1) as provided in the applicable Indenture if PID Bonds secured by such Assessments are issued and outstanding, or (2) into the PID Reimbursement Fund if no such PID Bonds are issued or no PID Bonds remain outstanding; PAGE 2 1.17 WHEREAS, Bond Proceeds shall be deposited as provided in the applicable Indenture; 1.18 WHEREAS, the PID Project Fund shall only be used in the manner set forth in the applicable Indenture; and 1.19 WHEREAS, this Agreement is a "reimbursement agreement" authorized by Section 372.023(d)(1) of the Act. NOW THEREFORE, for and in consideration of the mutual obligations of the Parties set forth in this Agreement, the Parties agree as follows: ARTICLE 2. GENERAL 2.01 Effect of Recitals. The foregoing RECITALS: (1) are part of this Agreement for all purposes; (2) are true and correct; and (3) each Party has relied upon such Recitals in entering into this Agreement. 2.02 Related Documents. All resolutions and ordinances referenced in this Agreement (e.g., the PID Creation Resolution and the Assessment Ordinance), together with all other documents referenced in this Agreement (e.g., the PSAP (to be replaced by the SAP on its approval), the Development and Authorized Improvements Agreement, and each Indenture) (collectively, the "Related Documents"), are, or will be on their adoption and approval, incorporated as part of this Agreement for all purposes as if such resolutions, ordinances, and other documents were set forth in their entirety in or as exhibits to this Agreement. 2.03 References. Unless otherwise defined in Article 3 or elsewhere in this Agreement: (1) all references to "Sections" shall mean Sections of this Agreement; (2) all references to "exhibits" shall mean exhibits to this Agreement which are incorporated into this Agreement for all purposes; and (3) all references to "ordinances" or "resolutions" shall mean ordinances or resolutions adopted by the City Council. ARTICLE 3. DEFINITIONS 3.01 "Actual Costs" mean, with respect to Authorized Improvements, the actual costs paid or incurred by or on behalf of the Developer: (1) to plan, design, acquire, construct, install, and dedicate such improvements to the City; (2) to prepare plans, specifications (including bid packages), contracts, and as -built drawings; (3) to obtain zoning, licenses, plan approvals, permits, inspections, and other governmental approvals; (4) for third - party professional consulting services including but not limited to, engineering, PAGE surveying, geotechnical, land planning, architectural, landscaping, legal, accounting, and appraisals; (5) of labor, materials, equipment, fixtures, payment and performance bonds and other construction security, and insurance premiums; and (6) to implement, administer, and manage the above -described activities, including a 4% construction management fee. Actual Costs shall not include general contractor's fees in an amount that exceeds a percentage equal to the percentage of work completed or construction management fees in an amount that exceeds an amount equal to the construction management fee amortized in approximately equal monthly installments over the term of the applicable construction management contract. Amounts expended for costs described in subsection (3), (4), and (6) above shall be excluded from the amount upon which the general contractor and construction management fees are calculated. 3.02 "Actual Increased Costs" is defined in Section 6.11. 3.03 "Additional Costs" is defined in Section 6.11. 3.04 "Administrator" means the City or the person or independent firm designated by the City who shall have the responsibility provided in the SAP, the Indenture, or any other agreement or document approved by the City Council related to the duties and responsibility of the administration of the District. 3.05 "Agreement" means this document together with the PSAP (to be replaced with the SAP on its approval), Indentures, and all other Related Documents. 3.06 "Annual Collection Costs" means the actual or budgeted costs and expenses relating to collecting the Annual Installments, including, but not limited to, costs and expenses for: (1) the Administrator and City staff; (2) legal counsel, engineers, accountants, financial advisors, and other consultants engaged by the City; (3) calculating, collecting, and maintaining records with respect to Assessments and Annual Installments; (4) preparing and maintaining records with respect to Assessment Rolls and Annual Service Plan Updates; (5) issuing, paying, and redeeming PID Bonds, if issued; (6) investing or depositing Assessments and Annual Installments; (7) complying with the SAP and the PID Act with respect to the administration of the District, including continuing disclosure requirements; and (8) the paying agent/registrar and Trustee in connection with PID Bonds, if issued, including their respective legal counsel. Annual Collection Costs collected but not expended in any year shall be carried forward and applied to reduce Annual Collection Costs for subsequent years. 3.07 "Annual Installment" means the annual installment payment of an Assessment as calculated by the Administrator and approved by the City Council, that may include: (1) PAGE 4 principal; (2) interest; (3) Annual Collection Costs; and (4) Additional Interest, if applicable. 3.08 "Annual Service Plan Update" means an update to the SAP prepared no less frequently than annually by the Administrator and approved by the City Council, in accordance with the Act. 3.09 "ARplicable Laws" means the PID Act and all other laws or statutes, rules, or regulations of the State of Texas or the United States, as the same may be amended, by which the City and its powers, securities, operations, and procedures are, or may be, governed or from which its powers may be derived. The term also includes, without limitation, the Related Documents, the City's Code of Ordinances_ and Unified Development Code (as may be modified by the PUD Ordinance), and all other City or City -adopted or City -approved ordinances, resolutions, orders, codes, specifications, standards, policies, manuals, and other actions of the City pertaining to design, construction, and conditions for the City's acceptance of the Authorized Improvements for ownership and maintenance. 3.10 "Assessed Property" means any Parcel within the District that benefits from the Authorized Improvements and on which an Assessment is levied as shown on the Assessment Roll and includes any and all Parcels within the District other than Non- Benefitted Property. 3.11 "Assessment" or "Assessments" means an assessment levied against a Parcel and imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on the Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and in the PID Act. The Improvement Area #1 Assessments and the Improvement Area #2 Assessments shall all be considered Assessments. 3.12 "Assessment Ordinance" means an ordinance (whether one or more) to be adopted by the City Council in accordance with the PID Act that approves the SAP and levies the Assessment on all or a portion of the Assessed Property within the District, as shown on the Assessment Roll. 3.13 "Assessment Levy Request" is defined in Section 5.02. 3.14 "Assessment Revenue" means the revenues actually received by or on behalf of the City from the collection of Assessments, including Prepayments, Annual Installments and foreclosure proceeds. PAGE 5 3.15 "Assessment Roll" means the assessment roll for the Assessed Property within the District to be included in the SAP and as may be subsequently modified, or amended from time to time in accordance with the procedures set forth in the SAP and in the PID Act, including updates prepared in connection with the issuance of PID Bonds or in connection with any Annual Service Plan Update. 3.16 "Association Turnover Date" is defined in the Development and Authorized Improvements Agreement. 3.17 "Authorized Improvements" means the improvements authorized under Section 372.003 of the Act, as more specifically described in Section III of the PSAP, as may be subsequently modified or amended as provided in the SAP, which improvements shall be accepted for ownership by the City or for public use (e.g. public easement), including District Formation Expenses, First Year Annual Collection Costs, and Bond Issuance Costs (each as defined in the SAP), if PID Bonds are issued. The Parties acknowledge and agree that based on the anticipated phasing of the Property, the PSAP currently lists only Major Improvements and Improvement Area #1 Improvements; however, when Improvement Area #2 is developed, the Improvement Area #2 Improvements described in Exhibit "I", attached hereto, will be included in the definition of Authorized Improvements. 3.18 "Bond Improvement Account" means the subaccount within the Project Fund established by an Indenture relating to PID Bonds, including the Improvement Area #1 Bonds and the Improvement Area # 2 Bonds, into which Bond Proceeds are deposited to pay for the Actual Costs of the Authorized Improvements as described in the Indenture. 3.19 "Bond Issuance Request" means the written request made by Developer to the City to issue PID Bonds in good faith as evidenced by Developer's expenditure of necessary amounts for market studies, financial analysis, legal counsel, and other professional services and due diligence necessary to support the request. 3.20 `Bond Proceeds" means the proceeds derived from the issuance and sale of a series of PID Bonds that are deposited and made available to pay Actual Costs in accordance with the applicable Indenture. 3.21 `Buyer Disclosure Program" means the disclosure program as set forth in Exhibit "F" attached hereto, that establishes a mechanism to disclose to each Buyer, as that term is defined in Exhibit "F", the terms and conditions under which their land is burdened by the PID. PAGE 6 3.22 "Certificate for Payment" means a certificate (substantially in the form of Exhibit "B" or as otherwise approved by the Developer and the City Representative) executed by a representative of the Developer and approved by the City Representative, delivered to the City Representative (and/or, if applicable, to the trustee named in any applicable Indenture), specifying the work performed and the amount charged (including materials and labor costs) for Actual Costs of Authorized Improvements (or completed segments thereof), and requesting payment of such amount from the PID Project Fund or the PID Reimbursement Fund. Each certificate shall include supporting documentation in the standard form for City construction projects and evidence that the Authorized Improvements (or its completed segment) covered by the certificate have been inspected and accepted for ownership and maintenance by the City. 3.23 "Change Orders" is defined in Section 5.20. 3.24 "City" means the City of Georgetown, Texas. 3.25 "City Council" means the governing body of the City. 3.26 "City PID Policy" means the "Policy and Guidelines for Reimbursement Public Improvement Districts" adopted by the City Council on December 11, 2018. 3.27 "City l2resentative" means the person authorized by the City Council to undertake the actions referenced herein. As of the Effective Date, the City Representative is the Assistant City Manager. The City Manager may change the City Representative from time to time in the City Manager's sole discretion and shall promptly notify Developer of any such change. 3.28 "Closing Disbursement Request" means a request in the form of Exhibit "C" or as otherwise approved by the Parties. 3.29 "Complete" "Completed" or "Compl_eting" are defined in the Development and Authorized Improvements Agreement. 3.30 "Cost Overrun" is defined in Section 5.08. 3.31 "Cost Underrun" is defined in Section 5.19. 3.32 "Default" is defined in Section 6.08.01. 3.33 "Delinquent Collection Costs" mean, for an Assessed Property, interest, penalties, and other costs and expenses authorized by the PID Act that directly or indirectly relate PAGE 7 to the collection of delinquent Assessments, delinquent Annual Installments, or any other delinquent amounts due under this SAP, including costs and expenses to foreclose liens. 3.34 "Developer" is defined in the introductory paragraph of this Agreement. 3.35 "Developer Advances" means advances made by the Developer to pay Actual Costs. 3.36 "Developer Continuing Disclosure Agreement" means any Continuing Disclosure Agreement of Developer executed contemporaneously with the sale of PID Bonds. 3.37 "Developer Funded Improvements" means the improvements that are funded entirely by the Developer and are not eligible for repayment by Assessments or reimbursement with Bond Proceeds from the sale of PID Bonds; provided that, for the avoidance of doubt, such term does not include the improvements to be funded entirely by the Developer without reimbursement to the extent the amount of Authorized Improvements exceeds the amount of the Reimbursement Obligation and PID Bonds. 3.38 "Develolment and Authorized Improvements Agreement" is defined in Section 1.05. 3.39 "Effective Date" is defined in the introductory paragraph of this Agreement. 3.40 "Estimated Additional Costs" is defined in the Section 6.11. 3.41 "Estimated Buildout Value" means the estimated buildout value of an Assessed Property at the time Assessments are levied, and shall be determined by the Administrator and confirmed by the City Council by considering such factors as density, lot size, proximity to amenities, view premiums, location, market conditions, historical sales, builder contracts, discussions with homebuilders, reports from third party consultants, or any other information that may impact value. 3.42 "Failure" is defined in Section 6.08.01. 3.43 "HOA" means the Owners Association(s) required to be established by the Development and Authorized Improvements Agreement. 3.44 "Improvement Area #1" means the area consisting of approximately 44.3 acres shown in the attached Exhibit "A", which consists of that portion of the Property having the base zoning designation of SF-1 in the PUD Ordinance. 3.45 "Improvement Area #1 Assessment" means the Assessments levied against the Assessed Property in Improvement Area #1 for the Improvement Area #1 Improvements. PAGE 8 3.46 "Improvement Area #1 Bonds" means PID Bonds secured by the Improvement Area #1 Assessments. 3.47 "Improvement Area #1 Improvements" means the Authorized Improvements that solely benefit Improvement Area #1 and the pro rata share of the Actual Costs of the construction of, acquisition of, or reimbursement for the Major Improvements attributable to Improvement Area #1. 3.48 "Improvement Area #2" means the area consisting of approximately 22.6 acres shown in the attached Exhibit "A" which consists of that portion of the Property having a base zoning designation of MF-1 in the PUD Ordinance. 3.49 "Improvement Area #2 Assessment" means the Assessments levied against the Assessed Property in Improvement Area #2 for the Improvement Area #2 Improvements. 3.50 "Improvement Area #2 Bonds" means PID Bonds secured by the Improvement Area #2 Assessments. 3.51 "Improvement Area #2 Improvements" means the Authorized Improvements that solely benefit Improvement Area #2 and the pro rata share of the Actual Costs of the construction of, acquisition of, or reimbursement for the Major Improvements attributable to Improvement Area #2, as further described in Exhibit "I", attached hereto. 3.52 "Improvement Areas" means, collectively, Improvement Area #1 and Improvement Area #2. 3.53 "Indenture" means the applicable trust indenture pursuant to which PID Bonds are issued. 3.54 "Lot" means (1) for any portion of the District for which a subdivision plat has been recorded in the official public records of the County, a tract of land described as a "lot" in such subdivision plat, and (2) for any portion of the District for which a subdivision plat has not been recorded in the official public records of the County, a tract of land anticipated to be described as a "lot" in a final recorded subdivision plat as shown on a concept plan or preliminary plat. 3.55 "Lot Type" means a classification of final building Lots with similar characteristics (e.g. lot size, home product, buildout value, etc.), as determined by the Administrator and confirmed and approved by the City Council. In the case of single-family residential Lots, the Lot Type may be further defined by classifying the residential Lots by the Estimated Buildout Value of the Lot as calculated by the Administrator and confirmed and approved by the City Council. PAGE 9 3.56 "Major Improvements" mean improvements authorized by Section 372.003 of the PID Act that confer a special benefit to the Assessed Property within the District and are eligible to be repaid with Assessments. These improvements are specifically described in Section III.A of the PSAP and are shown on Exhibit I of the PSAP, as may be subsequently modified or amended as provided in the SAP. 3.57 "Maturity Date_" is the date one year after the last Annual Installment is collected. 3.58 "Minimum Value to Lien Ratio" means the estimated taxable assessed value of the final subdivided Lots in the PID as of the date of Developer's request for a PID Bond issuance divided by the dollar amount of the Assessment, which quotient must be at least four (i.e., the estimated assessed value to lien ratio is 4:1), taking into account all PID Bonds that would be outstanding after the issuance of the PID Bonds that are the subject of a Bond Issuance Request. In determining the estimated taxable assessed value of the property within the PID for purposes of calculating the Minimum Value to Lien Ratio, the Developer may use: (i) the sale price (as evidenced by executed real estate contracts provided to the City) of property within PID that has been sold and for which development on that property has begun; (ii) the sale price (as evidenced by executed _real estate contracts provided to the City) of property within the PID which has been sold but for which development has not begun; (iii) the Williamson Central Appraisal District's value of property within PID established by the last tax statement sent by the Williamson County Tax Assessor; (iv) the appraisal of each Assessed Property performed in accordance with the requirements of this Agreement or (v) any combination of (i) through (iv) without duplication. The City in its sole discretion may require such values to be supported by an appraisal of the applicable Parcels prepared by an appraiser selected by the City with all reasonable appraisal fees to be paid by the Developer. 3.59 "Non -Benefited ProperV' means Parcels within the boundaries of the District that accrue no special benefit from Authorized Improvements as determined by the City Council. 3.60 "Parcels " means a property within the boundaries of the District, identified by either a tax map identification number assigned by the Williamson Central Appraisal District for real property tax purposes, by metes and bounds description, by lot and block number in a final subdivision plat recorded in the official public records of the County, or by any other means as determined by the City Council. 3.61 "Par " and "Parties" are defined in the introductory paragraph of this Agreement. 3.62 "PID" is defined in Section 1.04. PAGE 10 3.63 "PID Act" is defined in Section 1.04. 3.64 "PID Administration Costs" means the City's initial costs incurred prior to PID Bond issuance in the establishment, administration, and operation of the PID (including but not limited to attorney fees, financial advisory fees, consultant fees, publication costs, and another cost or expense directly associated with the establishment, administration, and operation of the PID), plus such ongoing costs incurred by the City in administering the PID while the PID is in existence. 3.65 "PID Administration Fund" means the fund held by the City or the trustee named in any applicable Indenture, outside of the PID Trust Estate, into which shall be deposited, (a) the Prefunded PID Administration Amount; and (b) commencing one year after the first Assessment Revenues are received by the City, a portion of Assessment Revenues in amounts reasonably needed to pay the PID Administration Costs for the next one (1) year period, and such deposits of Assessment Revenues shall continue until the PID is terminated. Funds deposited in the PID Administration Fund are not in the PID Bond Security and are not available to pay debt service on the PID Bonds. 3.66 "PID Bonds" means any bonds issued in accordance with the PID Act, that are secured by Assessments. 3.67 "PID Bond Ordinance" means and refers to the ordinance or ordinances of the City Council that will authorize and approve the issuance and sale of the PID Bonds and provide for their security and payment, either under the terms of such ordinance or the Indenture related to the PID Bonds. 3.68 "PID Bond Security" means the funds that are to be pledged in or pursuant to the PID Bond Ordinance or the Indenture to the payment of the debt service requirements on the PID Bonds, consisting of the Assessments, including earnings and income derived from the investment or deposit of Assessment Revenues in the special funds or accounts created and established for the payment and security of the PID Bonds, unless such earnings are required to be deposited into a rebate fund for payment to the federal government. 3.69 "PID Creation Resolution" is defined in Section 1.04. 3.70 "PID Pledged Revenue Fund" means the fund, including all accounts created within such fund, established by the City under an Indenture (and segregated from all other funds of the City) into which the City deposits Assessment Revenue from the collection of Assessments, including Annual Installments thereof, securing PID Bonds issued and still outstanding under such Indenture. PAGE 11 3.71 "PID Project Fund" means the fund, including any accounts created within such fund, established by the City under an Indenture (and segregated from all other funds of the City) into which the City deposits a portion of the Bond Proceeds and any other funds authorized or required by such Indenture. 3.72 "PID Reimbursement Fund" means the fund established by the City under this Agreement (and segregated from all other funds of the City) into which the City deposits Assessment Revenue if not deposited into the PID Pledged Revenue Fund. 3.73 "PID Trust Estate" means a security interest in all of the moneys, rights and properties described in the grantings clauses of an Indenture securing the PID Bonds. 3.74 "Prefunded PID Administration Amount" means THIRTY-FIVE THOUSAND U.S. DOLLARS ($35,000.00), an amount estimated to cover the first year of PID Administration Costs to be paid by the Developer pursuant to Section 5.08 and deposited by the City into the PID Administration Fund. 3.75 "Prepayment" means the payment of all or a portion of an Assessment before the due date thereof. Amounts received at the time of a Prepayment which represent a payment of principal, interest, or penalties on a delinquent installment of Assessment are not to be considered a Prepayment, but rather are to be treated as a payment of the regularly scheduled Assessment. 3.76 "Properly" is defined in Section 1.04. 3.77 "PSAP" means the Bluffview Public Improvement District Preliminary Service and Assessment Plan attached as Exhibit "G". The PSAP will be replaced by the SAP on approval of the SAP. 3.78 "PUD Ordinance" is defined in Section 1.07. 3.79 TEO" is defined in the Section 6.11. 3.80 "Reimbursement Obligation" is defined in Section 5.09.01. 3.81 "Related Documents" is defined in Section 2.02. 3.82 "Required PID Improvements" is defined in the Development and Authorized Improvements Agreement. 3.83 "SAP" means the Bluffview Public Improvement District Service and Assessment Plan to be approved by the Assessment Ordinance, as the same may be updated or PAGE 12 amended by City Council action in accordance with the Act. The SAP shall be substantially in the same form as the PSAP attached hereto as Exhibit "G." 3.84 "Site Layout Plan" means the plan attached to this Agreement as Exhibit "E". 3.85 "Tax Certificate" is defined in Section 6.07.02. 3.86 "Transfer" and "Transferee" are defined in Section 6.10.01. ARTICLE 4. DEVELOPER OBLIGATIONS 4.01 Obligation to Fund and Complete Developer Funded Improvements. Developer shall Complete, or cause to be Completed, the Developer Funded Improvements at no cost to the City in accordance with the Applicable Laws and this Agreement. By its signature on this Agreement, the Developer certifies that prior to commencing construction of any of the Authorized Improvements, it will have sufficient funds to complete the Developer Funded Improvements and agrees to maintain sufficient funds for such purpose in the form of: (i) loan funds, (ii) funds available pursuant to a letter of credit, (iii) available cash, or (iv) any combination of (i) _ (iii) as required by the City. Developer further agrees that, if requested by the City, Developer shall provide evidence of same to the City. 4.02 Obligation to Complete Authorized Improvements. Developer shall Complete, or cause to be Completed, the Authorized Improvements at no cost to the City in accordance with the Applicable Laws and this Agreement. 4.03 Obligations Under the Development and Authorized Improvements Agreement. Developer shall Complete, or cause to be Completed, the Required PID Improvements at no cost to the City in accordance with the Applicable Laws and this Agreement. 4.04 Compliance with Applicable Laws. Development of the land within the PID must comply with applicable state and federal laws, rules, and regulations, and with the City's Code of Ordinances, Unified Development Code, and this Agreement (as may have been modified by the PUD Ordinance), but in the event of conflict, this Agreement shall control. 4.05 Indemnity. DEVELOPER COVENANTS AND AGREES TO FULLY INDEMNIFY AND HOLD HARMLESS CITY (AND THEIR ELECTED OFFICIALS, EMPLOYEES, OFFICERS, DIRECTORS, AND REPRESENTATIVES), INDIVIDUALLY AND COLLECTIVELY, FROM AND AGAINST ANY AND ALL PAGE 13 COSTS, CLAIMS, LIENS, DAMAGES, LOSSES, EXPENSES, FEES, FINES PENALTIES, PROCEEDINGS, ACTIONS, DEMANDS, CAUSES OF ACTION, LIABILITY AND SUITS OF ANY KIND AND NATURE BROUGHT BY ANY THIRD PARTY AND RELATING TO DEVELOPER'S CONSTRUCTION OF THE AUTHORIZED IMPROVEMENTS INCLUDING BUT NOT LIMITED TO, PERSONAL INJURY OR DEATH AND PROPERTY DAMAGE, MADE UPON CITY OR DIRECTLY OR INDIRECTLY ARISING OUT OF, RESULTING FROM OR RELATED TO DEVELOPER OR DEVELOPER'S CONTRACTORS' NEGLIGENCE, WILLFUL MISCONDUCT OR CRIMINAL CONDUCT IN ITS ACTIVITIES, INCLUDING ANY SUCH ACTS OR OMISSIONS OF DEVELOPER OR DEVELOPER'S CONTRACTORS, ANY AGENT, OFFICER, DIRECTOR, REPRESENTATIVE, EMPLOYEE, CONSULTANT OR SUBCONSULTANTS OF DEVELOPER OR DEVELOPER'S CONTRACTORS AND THEIR RESPECTIVE OFFICERS, AGENTS, EMPLOYEES, DIRECTORS AND REPRESENTATIVES, ALL WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO CITY, UNDER TEXAS LAW AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. THE PROVISIONS OF THIS INDEMNIFICATION ARE SOLELY FOR THE BENEFIT OF THE CITY AND ARE NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. DEVELOPER SHALL PROMPTLY ADVISE CITY IN WRITING OF ANY CLAIM OR DEMAND AGAINST CITY, RELATED TO OR ARISING OUT OF DEVELOPER OR DEVELOPER'S CONTRACTORS CONSTRUCTION ACTIVITIES UNDER THIS AGREEMENT AND SHALL SEE TO THE INVESTIGATION AND DEFENSE OF SUCH CLAIM OR DEMAND AT THE DEVELOPER'S COST TO THE EXTENT REQUIRED UNDER THE INDEMNITY IN THIS SECTION. CITY SHALL HAVE THE RIGHT, AT THEIR OPTION AND AT THEIR OWN EXPENSE, TO PARTICIPATE IN SUCH DEFENSE WITHOUT RELIEVING DEVELOPER OF ANY OF ITS OBLIGATIONS UNDER THIS PARAGRAPH. NOTWITHSTANDING ANYTHING TO THE CONTRARY, IF APPROVED IN WRITING IN ADVANCE BY THE CITY COUNCIL, DEVELOPER SHALL BE FULLY AND FINALLY RELEASED OF ITS INDEMNITY OBLIGATIONS UNDER THIS SECTION UPON ASSIGNMENT OF ALL, BUT NOT PART, OF ITS RIGHTS UNDER THIS AGREEMENT, AND UNDER THAT CIRCUMSTANCE THE CITY SHALL LOOK SOLELY TO THE DEVELOPER'S SUCCESSORS OR ASSIGNS OF RECORD (WHETHER ONE OR MORE) FOR INDEMNIFICATION. ARTICLE 5. FUNDING AUTHORIZED IMPROVEMENTS 5.01 Apportionment and Levy of Assessments. The City intends to levy Assessments on the Property over time in accordance herewith and with the SAP (as such plan is PAGE 14 amended from time to time). Assessments on any portion of the Property will bear a direct proportional relationship to and be less than or equal to the special benefit of the Authorized Improvements accruing to such portion of the Property. 5.02 Assessment Levy Request. 5.02.01 The Developer may provide written notice to the City requesting the levy of Assessments on one or both Improvement Areas (an "Assessment Levy Request"). The Assessment Levy Request must specify the amount of the PID Bonds that the Developer anticipates requesting and an approximate date that the Developer desires that PID Bonds be issued and be accompanied by any deliverables required by the City and the Administrator necessary for preparation of the SAP or any update thereto relating to such Improvement Area, including, but not limited to, receipt of an opinion of an engineer of the Developer's choice as to the probable cost for the Authorized Improvements to be reimbursed from the Assessments requested, legal descriptions for the Improvement Areas, and maps of Improvement Areas and location of Authorized Improvements. 5.02.02 The Parties contemplate that the initial Assessment Levy Request will be in an amount sufficient to pay the Actual Costs of the Improvement Area #1 Improvements and/or Improvement Area #2's pro-rata share of the Actual Costs of the Major Improvements; provided however, if the Improvement Area _ #2 Assessments herein described are levied concurrently with the Improvement Area #1 Assessments, then collection of the Improvement Area #2 Assessment shall be deferred in accordance with Section 5.03 below. Nothing in this Agreement shall prohibit the Developer from submitting an additional Assessment Levy Request to reimburse the Developer for any additional Actual Costs of the Improvement Area #2 Improvements not reimbursed by the initial Assessment Levy Request. 5.02.03 The Parties contemplate that (A) once it is determined whether (i) development of Improvement Area #2 will be for rental or ownership product and (ii) if the internal improvements within Improvement Area #2 will be public or private and (B) the Developer is ready to commence development within Improvement Area #2, the Developer may submit an Assessment Levy Request in an amount sufficient to pay the unreimbursed Actual Costs of the Improvement Area #2 Improvements. The chart attached hereto as Exhibit "H" illustrates the various options for how Improvement Area #2 could be developed and whether Improvement Area #2 Assessments would be qualified. 5.02.04 The City hereby acknowledges that the Developer has acted in reliance on the City's intention to levy Assessments as described herein. In recognition PAGE 15 thereof, the City shall use its best efforts to initiate and approve all necessary documents and ordinances required to effectuate this Agreement and to levy Assessments. The Developer acknowledges and agrees that the SAP must meet the requirements of Texas Local Government Code §§ 372.013 and 372.014 and be presented to the City Council for review and approval prior to a series of PID Bonds being issued. The SAP will be modified as required to comply with the requirements of the PID Act and the Texas Attorney General's Office. The Annual Installments of Assessments identified in the SAP shall be consistent with the terms for the issuance of PID Bonds as set forth in this Agreement. 5.02.05 It is contemplated that the City will issue one or more series of PID Bonds, to pay or reimburse the Developer for a portion of the Actual Costs of the Authorized Improvements. The Parties anticipate that the Actual Cost to construct the Authorized Improvements will be greater than the net proceeds of the PID Bonds or the Assessment Revenues available for reimbursement of the costs of the Authorized Improvements and the Developer shall be responsible for 100% of the costs of the difference. Nothing contained in this Agreement, however, shall be construed as creating a contractual obligation that controls, waives, or supplants the City Council's legislative discretion or functions. 5.02.06 At this time, it is contemplated that PID Bonds will be issued in the future and not issued concurrently with the City's levy of the Improvement Area #1 Assessments. As a result, the City and the Developer hereby agree that this Agreement shall serve as a "Reimbursement Agreement" in the amount of the Reimbursement Obligation specified in the PSAP, the SAP or any update thereto for each Improvement Area. At a later date, the Developer may provide a Bond Issuance Request to the City to finance such Reimbursement Obligation. 5.03 Deferral. If the City levies an Improvement Area #2 Assessment to reimburse the Developer for Improvement Area #2's pro-rata share of the Actual Costs for the Major Improvements concurrently with the Improvement Area #1 Assessments, after adoption of an Assessment Ordinance levying the herein described Improvement Area #2 Assessment, the City hereby agrees to defer collection of the Improvement Area #2 Assessment until the earlier of: (1) any limitation imposed by any Applicable Law; or (2) the Closing Date of Improvement Area #2 PID Bonds secured, in whole or in part, by the Improvement Area #2 Assessments. 5.04 Fund Deposits. Until PID Bonds are issued, the City shall bill, collect, and deposit into the PID Reimbursement Fund all Assessment Revenue consisting of: (1) revenue collected from the payment of Assessments (including Prepayments and amounts received from the foreclosure of liens but excluding costs and expenses related to PAGE 16 collection); and (2) revenue collected from the payment of Annual Installments (excluding Annual Collection Costs and Delinquent Collection Costs). Once PID Bonds are issued, the City shall bill, collect, and deposit all Assessment Revenue in the manner set forth in the applicable Indenture. Upon the issuance of PID Bonds, the Developer shall deposit any funds required by the Indenture in the manner set forth in the applicable Indenture. Annual Installments shall be billed and collected by the City (or by any person, entity, or governmental agency permitted by law) in the same manner and at the same time as City ad valorem taxes are billed and collected. Funds in the PID Project Fund shall only be used in accordance with the applicable Indenture. Funds in the PID Reimbursement Fund shall only be used to pay all or any portion of the Reimbursement Obligation in accordance with this Agreement. 5.05 Allocation of Assessments. Notwithstanding any other provision in this Agreement, the Actual Costs of Authorized Improvements allocable to each phase or Improvement Area shall be paid from the Assessment Revenue collected solely from Assessments levied on the property within such phase or Improvement Area benefitting from such Authorized Improvements. Notwithstanding the above, the Actual Costs of the Major Improvements shall be paid from the Assessment Revenue collected from Assessments levied on the property within both Improvement Area #1 and Improvement Area #2, such apportionment as estimated in the PSAP, and as will be provided in the SAP. 5.06 Collection of Assessments. The City will take and pursue all actions permissible under Applicable Laws to cause the Assessments to be collected and the liens related to such Assessments to be enforced continuously, in the manner and to the maximum extent permitted by the Applicable Laws, and, to the extent permitted by Applicable Laws, to cause no reduction, abatement or exemption in the Assessments for so long as any PID Bonds are outstanding or a Reimbursement Obligation remains outstanding. The City shall determine or cause to be determined, no later than February 15 of each year whether any Annual Installment is delinquent and if such delinquencies exist, the City will order and cause to be commenced as soon as practicable, and subject to any necessary action required by the City Council, any and all appropriate and legally permissible actions to obtain such Annual Installment, and any delinquent charges and interest thereon, including without limitation diligently prosecuting an action to foreclose the currently delinquent Annual Installment; provided, however, the City shall not be required under any circumstances to pay any delinquent Assessment or purchase or make payment for the purchase of the corresponding Assessed Property. 5.07 Maximum Annual Assessment. Notwithstanding anything in the PSAP or SAP to the contrary, the annual assessment to Parcel owners within the PID shall be no more PAGE 17 than the equivalent of a $0.55 per $100 tax rate, per the City PID Policy, on the Estimated Buildout Value of the Parcel or Lot Type as will be provided for in the SAP. 5.08 Payment of Actual Costs and PID Administration Costs. On or before the first Assessment is levied within the District, the Developer shall pay the Prefunded PID Administration Amount to the City, which the City shall deposit into the PID Administration Fund. In addition, from time to time on written request from the City, the Developer shall make additional Developer Advances to pay Actual Costs and, prior to PID Bond issuance, to reimburse the City for the City's costs incurred prior to PID Bond issuance in the establishment, administration, and operation of the PID (including but not limited to attorney fees, financial advisory fees, consultant fees, publication costs, and another cost or expense directly associated with the establishment, administration, and operation of the PID). The Developer shall also make Developer Advances to pay for any cost overrun (a "Cost Overrun") after applying cost savings. The Developer acknowledges and agrees that the lack of Bond Proceeds in the PID Project Fund and/or Assessment Revenues deposited to the PID Reimbursement Fund shall not diminish the Developer's obligations under this Agreement to construct or cause to be constructed the Authorized Improvements. The Developer agrees to pay the Actual Costs of the Authorized Improvements as will be set forth in the SAP, and agrees to maintain sufficient funds for such purpose in the form of: (i) loan funds, (ii) funds available pursuant to a letter of credit, (iii) available cash, or (iv) any combination of (i) — (iii) as reasonably required by the City. 5.09 Payment of Reimbursement Obligation. 5.09.01 The City agrees to pay to the Developer, and the Developer shall be entitled to receive payments from the City, until the Maturity Date, for an aggregate principal amount not to exceed FIFTEEN MILLION U.S. DOLLARS ($15,000,000) or so much thereof as from time to time remains outstanding (such outstanding amount of all City -approved Certificates for Payment, together with accrued interest as hereinafter described, is referred to collectively as the "Reimbursement Obligation"), with the amount for each payment request being shown on each Certificate for Payment (which amounts include only Actual Costs paid by or at the direction of the Developer) plus simple interest on the unpaid principal balance at the lesser rate of: (i) two percent (2%) above the highest average index rate for tax-exempt bonds reported in a daily or weekly bond index reported in the month before the date of determination (which is the date of the approval by the City of the Assessment Ordinance levying the Assessments from which the Reimbursement Obligation, or a portion thereof, shall be paid), or (ii) if PID Bonds are issued, the same interest rate on such PID Bonds. For purposes of PAGE 18 Sections 372.023(e)(1) and (e)(2) of the Act, the interest rate on any portion of the Reimbursement Obligation not to be paid from the proceeds of PID Bonds shall be calculated for each Certificate for Payment using the date that the Certificate for Payment is approved by the City as the date that the obligation to pay the Certificate for Payment is incurred. The City shall have no obligation to approve a Certificate for Payment for which any of the conditions to payment (described therein as the Developer's representations and warranties) have not been met. If any portion of the Reimbursement Obligation remains unpaid after the City has elected to sell PID Bonds for the purpose of paying a portion of the Reimbursement Obligation, the interest rate paid to the Developer on such unpaid Reimbursement Obligation shall be at the rates set forth in this Section 5.09. The method for determining the interest rate for the unpaid balance of the Reimbursement Obligation as set forth in this paragraph has been approved by the City Council and is authorized by and complies with the Act, including specifically subsections (e)(1) and (e)(2) of Section 372.023 of the Act. The obligation of the City to pay the Reimbursement Obligation is payable solely from the PID Reimbursement Fund or from net proceeds from the sale of the PID Bonds deposited in the PID Project Fund. No other City funds, revenue, taxes, income, or property shall be used even if the Reimbursement Obligation is not paid in full by the Maturity Date. Payments made from the PID Reimbursement Fund toward any outstanding Reimbursement Obligation, shall first be applied to unpaid interest on such Reimbursement Obligation owed to the Developer, and second to unpaid principal of the Reimbursement Obligation owed to the Developer. Each payment from the PID Reimbursement Fund shall be in accordance with this Agreement and shall be accompanied by an accounting that certifies the Reimbursement Obligation as of the date of the payment and that itemizes all deposits to and disbursements from the PID Reimbursement Fund since the last payment. All payments from net proceeds from the sale of PID Bonds deposited in the PID Project Fund shall be made in accordance with the applicable Indenture. If there is a dispute over the amount of any payment, the City shall nevertheless pay the undisputed amount, and the Parties shall use all reasonable efforts to resolve the disputed amount before the next payment is made; however, if the Parties are unable to resolve the disputed amount, then the City's determination of the disputed amount (as approved by the City Council) shall control. 5.10 Issuance of PID Bonds. 5.10.01 General. The City, in its sole, legislative discretion, may issue PID Bonds in accordance with the standards set forth in this Agreement and in the City PID Policy, in one or more series, when and if the City Council determines that the PAGE 19 requirements in this Agreement and the City PID Policy (except as otherwise allowed by Section 5.10.02) have been met by Developer or can be met at the time of issuance of the PID Bonds, including but not limited to the following: (i) the statutory requirements set forth in the PID Act have been satisfied; (ii) the City shall receive at the time of issuance an opinion of bond counsel selected by the City stating in effect that the PID Bonds are legal and valid under Texas law and that all preconditions to their issuance under State law have been satisfied; (iii) the City shall receive the approving opinion of the Attorney General of the State of Texas as required by the Act; (iv) the Minimum Value to Lien Ratio is met (regarding which, the City in its sole discretion may require such values to be supported by an appraisal of the applicable parcels prepared by an appraiser selected by the City with all reasonable appraisal fees to be paid by the Developer); and (v) it is financially feasible for the City to issue PID Bonds for the purposes of paying the Reimbursement Obligation. PID Bonds issued for such purpose will be secured by and paid solely as authorized by the applicable Indenture. Upon the issuance of PID Bonds for such purpose and for so long as PID Bonds remain outstanding, the Developer's right to receive payments each year in accordance with Section 5.09 shall be subordinate to the deposits required under the applicable Indenture related to any outstanding PID Bonds and the Developer shall be entitled to receive funds pursuant to the flow of funds provisions of such Indenture. The failure of the City to issue PID Bonds shall not constitute a Failure (defined herein) by the City or otherwise result in a Default (defined herein) by the City. The Developer shall not be relieved of its duty to construct or cause to be constructed such improvements even if there are insufficient funds in the PID Project Fund to pay the Actual Costs. This Agreement shall apply to all of the PID Bonds issued by the City whether in one or more series, and no additional reimbursement agreement shall be required for future series of PID Bonds. 5.10.02 Alternative PID Policy Compliance Terms. Section III.11 of the City PID Policy states that, "[i]f multi -family rental units are included within the proposed assessments, all of the multi -family PID assessments must be prepaid by the developer or builder, and such assessments and prepayment amounts thereof shall be excluded from any reimbursement to the developer, including from PID Bonds." However, the Parties agree that, if multi -family rental units are included within Improvement Area #2, Section III.11 of the City's PID Policy shall not apply, but in lieu thereof, the following restrictions, limitations, and conditions of this Section will apply: PID Bonds secured by the Improvement Area #2 Assessments shall not be issued unless and until (a) Developer has Completed construction of the Authorized Improvements in accordance with all terms and conditions of the Development and Authorized Improvement Agreement; (b) Developer has PAGE 20 provided the City with an executed letter of intent or contract for sale from a third - party developer or experienced third -party multi -family management entity stating that Improvement Area #2 will be developed only with multi -family rental units (and not single family units or non-residential development); (c) Developer has secured, or caused to be secured, all building permits needed for construction of multi -family residential units in Improvement Area #2; and (d) the requirements of Section 5.10.01 are met. The chart attached hereto as Exhibit "H" illustrates the various options for how Improvement Area #2 could be developed and whether the alternative PID Policy compliance terms stated in this Section 5.10.02 will apply. Notwithstanding anything to the contrary contained herein, it is hereby acknowledged and agreed that PID Bonds secured by the Improvement Area #2 Assessments may be issued regardless of whether multi -family rental units or for sale units are included within Improvement Area #2. 5.10.03 The City hereby acknowledges that the Developer has acted in reliance on the City's intention to issue PID Bonds. In recognition thereof, the City hereby agrees to use diligent, reasonable and good faith efforts, subject to meeting the requirements and conditions stated herein, the City PID Policy and State law, to commence the documentation for and the issuance of PID Bonds within four to six months after receiving a Bond Issuance Request from Developer. The City will consider the adoption of a PID Bond Ordinance, subject to meeting the requirements and conditions stated in this Agreement, the City PID Policy and State law, to reimburse the Developer for Actual Costs of those Authorized Improvements that are Complete at the time of the PID Bond issue less any amounts already reimbursed to Developer pursuant to this Agreement. 5.11 Denomination, Maturity, Interest, and Security for PID Bonds. 5.11.01 The PID Bonds shall be finally authorized by the City Council and shall be issued in the denominations, shall mature and be prepaid, shall bear interest, and shall be secured by and payable solely from the PID Bond Security, all to be as described and provided in the PID Bond Ordinance or Indenture, as applicable. 5.11.02 The final and adopted versions of the PID Bond Ordinance and the Indenture (and all documents incorporated or approved therein) shall contain provisions relating to the withdrawal, application, and uses of the proceeds of the PID Bonds when and as issued and delivered and otherwise contain such terms and provisions as are mutually approved by the City and the Developer and consistent with this Agreement. PAGE 21 5.12 Sale of PID Bonds. 5.12.01 Once approved for issuance, the PID Bonds shall be issued by the City and shall be marketed and sold as determined by the City with the cooperation and assistance of the Developer in all respects with respect to the preparation of marketing documents, such as preliminary and final official statements. The Developer agrees to provide such financial information as may be necessary for the issuance of the PID Bonds to comply with applicable securities laws and the provisions of Securities and Exchange Rule 15c2-12. 5.12.02 The aggregate principal amount of PID Bonds required to be issued hereunder shall not exceed an amount sufficient to fund: (i) the reimbursements for the Actual Costs of the Authorized Improvements; (ii) required reserves and capitalized interest (if any) during the period of construction and not more than twelve (12) months after the completion of construction of all Authorized Improvements covered by the PID Bond issue in question; (iii) the Reserve Fund and the Administrative Fund (as defined in the Indenture); and (iv) any costs of issuance for the PID Bonds. 5.12.03 The final maturity for each series of PID Bonds shall occur no later than twenty-five (25) years from the issuance date of said PID Bonds. 5.12.04 Any PID Bonds issued must include a Reserve Fund (as defined in the Indenture) funded from proceeds of such PID Bonds at the time of issuance. Refunding PID Bonds may satisfy this requirement in cases where an existing Reserve Fund is transferred to the refunding PID Bonds. All PID Bond Reserve Funds at the time of issuance shall be in an amount equal to the lesser of: (i) the maximum annual debt service on the PID Bonds; (ii) 10% of the PID Bond proceeds; or (iii) 125% of the average annual debt service on the PID Bonds. 5.12.05 The maximum aggregate par amount of all PID Bonds shall not exceed FIFTEEN MILLION U.S. DOLLARS ($15,000,000). 5.12.06 The City will (i) select the underwriter(s) for each series of PID Bonds; (ii) determine credit criteria; (iii) investor suitability; (iv) structure of each series of such bonds; and (v) the continuing disclosure requirements for each series of such bonds, each with input from the Developer, but in every instance the City shall make the final decision regarding all terms and matters related to the issuance and sale of PID Bonds. PAGE 22 5.12.07 Prior to the issuance of PID Bonds, Developer must be current on all taxes, Assessments, fees and not in default under this Agreement or any other agreement with the City, including information required from Developer for timely disclosures as required by any applicable continuing disclosure agreement. 5.13 Disbursements and Transfers. 5.13.01 The City and the Developer agree that, prior to a PID Bond issuance, and upon the presentation of evidence satisfactory to the City Representative, the City will pay from the Reimbursement Fund, approved amounts from the appropriate account to the City or the Developer, as applicable, which costs may include payment of costs incurred in the establishment, administration, and operation of the PID and any other eligible items expended by the Developer or the City. In order to receive disbursement, the Developer shall execute a Certificate for Payment to be delivered to the City no more often than once per calendar month. 5.13.02 The City and the Developer agree that from the proceeds of the PID Bonds, and upon the presentation of evidence satisfactory to the City Representative, the City will cause the trustee under the applicable Indenture to pay at closing of the PID Bonds approved amounts from the appropriate account to the City or the Developer, as applicable, which costs may include payment for costs of issuance of PID Bonds and payment of costs incurred in the establishment, administration, and operation of the PID and any other eligible items expended by the Developer and the City as of the time of the delivery of the PID Bonds as will be described in the SAP. In order to receive disbursement, the Developer shall execute a Closing Disbursement Request to be delivered to the City no fewer than fifteen (15) calendar days prior to the scheduled pricing date for the PID Bonds for payment in accordance with the provisions of the applicable Indenture. 5.13.03 In order to receive disbursements for Actual Costs of Authorized Improvements from the applicable fund under this Agreement and applicable Indenture relating to the applicable PID Bonds, the Developer shall execute a Certificate for Payment, no more frequently than once per calendar month, to be delivered to the City for payment in accordance with the provisions of the applicable Indenture relating to the applicable PID Bonds and this Agreement. Upon receipt of a Certificate for Payment (along with all accompanying documentation required by the City) from the Developer, the City shall conduct a review in order to confirm that such request is complete, to confirm that the work for which payment is requested was performed in accordance with all Applicable Laws and applicable plans therefore and with the terms of this Agreement and PAGE 23 any other agreement between the parties related to property in the PID, that the Authorized Improvement (or such segment thereof) has been inspected by the City and accepted by the City for ownership, operation, and maintenance, and to verify and approve the Actual Costs of such work specified in such certificate. The City shall also conduct such review as is required in its discretion to confirm the matters certified in the Certificate for Payment. 5.13.04 The Developer agrees to cooperate with the City in conducting each such review required to be made for the approval of a Certificate for Payment; and the Developer agrees to provide the City with such additional information and documentation as is reasonably necessary for the City to conclude each such review. 5.13.05 The Developer further agrees that sales tax will not be approved for payment under a Certificate for Payment. 5.13.06 Within fifteen (15) business days following receipt of any Certificate for Payment, the City shall either: (1) approve such certificate and, if PID Bonds have been issued, forward it to the trustee under the applicable Indenture for payment, or (2) provide the Developer with written notification of disapproval of all or part of such certificate, specifying the basis for any such disapproval. Any disputes shall be resolved as required by Section 5.09 herein. If within the fifteen (15) business day timeframe stated above, the City fails to either approve the Certificate for Payment or provide Developer with written notice in accordance with (2) above, the Certificate of Payment shall be deemed approved. If PID Bonds have been issued, the City shall deliver the approved or partially approved Certificate for Payment to the trustee under the applicable Indenture for payment no later than the sixteenth (161h) business day following receipt of the Certificate for Payment, and such trustee shall make the disbursements as quickly as practicable thereafter. 5.13.07 If proceeds from PID Bonds are still available after all the Authorized Improvements are Complete and accepted by the City, and Developer has been reimbursed for all unreimbursed Actual Costs incurred in connection therewith, the proceeds shall be utilized in accordance with the applicable Indenture. 5.14 Obligations Limited. The obligations of the City under this Agreement shall not, under any circumstances, give rise to or create a charge against the general credit or taxing power of the City or a debt or other obligation of the City payable from any source other than the PID Reimbursement Fund or the PID Project Fund. Unless approved by the City Council, no other City funds, revenues, taxes, property, or income of any kind PAGE 24 shall be used to pay: (1) the Actual Costs of the Authorized Improvements; (2) the Reimbursement Obligation even if the Reimbursement Obligation is not paid in full on or before the Maturity Date; or (3) debt service on any PID Bonds. None of the City or any of its elected or appointed officials or any of its officers, employees, consultants or representatives shall incur any liability hereunder to the Developer or any other party in their individual capacities by reason of this Agreement or their acts or omissions under this Agreement. 5.15 Obligation to Pay. Subject to the provisions of Section 5.09 and 5.14, if the Developer is (1) current on payment of all taxes, assessments and fees owed to the City, and (2) in then -current compliance with its obligations under (a) this Agreement, and (b) all Developer Continuing Disclosure Agreements (if PID Bonds are issued and remain outstanding); then, following the inspection and final acceptance by the City of the applicable Authorized Improvement (or segment thereof) for ownership, operation, and maintenance by the City of an Authorized Improvement (or segment thereof) for which Developer seeks reimbursement of the Actual Costs by submission of a Certificate for Payment or Closing Disbursement Request, the obligations of the City under this Agreement to pay disbursements (whether to the Developer or to any person designated by the Developer) identified in any approved Certificate for Payment or Closing Disbursement Request and to pay debt service on PID Bonds are unconditional AND NOT subject to any defenses or rights of offset except as may be provided in any Indenture. 5.16 City Delegation of Authority. All Authorized Improvements shall be constructed by or at the direction of the Developer in accordance with the plans and in accordance with this Agreement and all Applicable Laws. The Developer shall perform, or cause to be performed, all of its obligations and shall conduct, or cause to be conducted, all operations with respect to the construction of Authorized Improvements in a good, workmanlike and commercially reasonable manner, with the standard of diligence and care normally employed by duly qualified persons utilizing their commercially reasonable efforts in the performance of comparable work in accordance with all Applicable Laws, and generally accepted practices appropriate to the activities undertaken. The Developer has sole responsibility of ensuring that all Authorized Improvements are constructed in a good, workmanlike and commercially reasonable manner, with the standard of diligence and care normally employed by duly qualified persons utilizing their commercially reasonable efforts in the performance of comparable work in accordance with City ordinances, City codes, City regulations, and generally accepted practices appropriate to the activities undertaken. The Developer shall employ at all times adequate staff or consultants with the requisite experience necessary to administer and coordinate all work related to the design, engineering, acquisition, PAGE 25 construction and installation of all Authorized Improvements to be acquired and accepted by the City from the Developer. If any Authorized Improvements are or will be on land owned by the City, the City hereby grants to the Developer a license to enter upon such land for purposes related to construction (and maintenance pending acquisition and acceptance) of the Authorized Improvements. Inspection and acceptance by the City of Authorized Improvements will be in accordance with applicable City ordinances and regulations. 5.17 Security for Authorized Improvements. Prior to completion and conveyance to the City of any Authorized Improvements, the Developer shall cause to be provided to the City a maintenance bond in the amount required by the City's subdivision regulations for applicable Authorized Improvements, which maintenance bond shall be for a term of two years from the date of final acceptance by the City of the applicable Authorized Improvements for ownership, operation, and maintenance. Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, meeting at least the City's minimum acceptable rating established under the City's financial institution rating system then in effect, provided that legal counsel for the City has the right to reject any surety company regardless of such company's authorization to do business in Texas. Nothing in this Agreement shall be deemed to prohibit the Developer or the City from contesting in good faith the validity or amount of any mechanics or materialman's lien and/or judgment nor limit the remedies available to the Developer or the City with respect thereto so long as such delay in performance shall not subject the Authorized Improvements to foreclosure, forfeiture, or sale. In the event that any such lien and/or judgment with respect to the Authorized Improvements is contested, the Developer shall be required to post or cause the delivery of a surety bond or letter of credit, whichever is preferred by the City, in an amount reasonably determined by the City, not to exceed 120 percent of the disputed amount. 5.18 Ownership and Conveyance of Authorized Improvements. The Developer shall furnish to the City a preliminary title report for land related to the Authorized Improvements to be acquired and accepted by the City from the Developer and not previously dedicated or otherwise conveyed to the City. The report shall be made available for City review and approval at least twenty (20) business days prior to the scheduled transfer of title. The City shall approve the preliminary title report unless it reveals alien or encumbrance, or any other a matter which, in the sole judgment of the City, would materially affect the City's ownership, use and enjoyment of the Authorized Improvements. If the City objects to any preliminary title report, the City shall not be obligated to accept title to the applicable Authorized Improvements until the Developer has cured the objections to the satisfaction of the City. PAGE 26 5.19 Remaining Funds After Completion of an Authorized Improvement. Upon the entering into of final construction contracts for an Authorized Improvement, if the Actual Cost of such Authorized Improvement is less than the budgeted cost as will be shown an Exhibit to the SAP, as the same may be updated by the City, (a "Cost Underrun"), any remaining budgeted cost will be available to pay Cost Overruns on any other Authorized Improvement. Additionally, upon the final completion of an Authorized Improvement and payment of all outstanding invoices for such Authorized Improvement, any Cost Underrun will be available to pay Cost Overruns on any other Authorized Improvement. A City Representative shall promptly confirm to the Administrator that such remaining amounts are available to pay such Cost Overruns, and the Developer, the Administrator and the City Representative will agree how to use such moneys to secure the payment and performance of the work for other Authorized Improvements. Any Cost Underrun for any Authorized Improvement is available to pay Cost Overruns on any other Authorized Improvement and may be added to the amount approved for payment in any Certificate for Payment, as mutually agreed to by the Developer, the Administrator and the City Representative. 5.20 Contracts and Change Orders. The Developer shall be responsible for entering into all contracts and any supplemental agreements (herein referred to as "Change Orders") required for the construction of an Authorized Improvement. The Developer or its contractors may approve and implement any Change Orders even if such Change Order would increase the Actual Cost of an Authorized Improvement, but the Developer shall be solely responsible for payment of any Cost Overruns resulting from such Change Orders except to the extent amounts are available pursuant to Section 5.14. If any Change Order is for work that requires changes to be made by an engineer to the construction and design documents and plans previously approved by the City as Approved Plans, then such revisions made by an engineer must be submitted to the City for approval by the City's engineer prior to execution of the Change Order. ARTICLE 6. ADDITIONAL PROVISIONS 6.01 Term. The term of this Agreement shall begin on the Effective Date and shall continue until the earlier to occur of the Maturity Date or the date on which the Reimbursement Obligation is paid in full. 6.02 No Competitive Bidding. Construction of the Authorized Improvements shall not require competitive bidding pursuant to Section 252.022(a) (9) of the Texas Local Government Code, as amended. All plans and specifications, but not construction contracts, shall be reviewed and approved, in writing, by the City. PAGE 27 6.03 Independent Contractor. In performing this Agreement, the Developer is an independent contractor and not the agent or employee of the City. 6.04 Audit. The City Representative shall have the right, during normal business hours and upon five (5) business days' prior written notice to the Developer, to review all books and records of the Developer pertaining to costs and expenses incurred by the Developer with respect to any of the Authorized Improvements. For a period of two years after completion of the Authorized Improvements or after the expenditure of all Bond Proceeds, whichever is later, the Developer shall maintain proper books of record and account for the construction of the Authorized Improvements and all costs related thereto. Such accounting books shall be maintained in accordance with customary real estate accounting principles. The Developer shall have the right, during normal business hours, to review all records and accounts pertaining to the Assessments upon written request to the City. The City shall provide the Developer an opportunity to inspect such books and records relating to the Assessments during the City's regular business hours and on a mutually agreeable date no later than ten (10) business days after the City receives such written request. The City shall keep and maintain a proper and complete system of records and accounts pertaining to the Assessments for so long as PID Bonds remain outstanding or Reimbursement Obligation remains unpaid. 6.05 Developer's Right to Protest Ad Valorem Taxes. Nothing in this Agreement shall be construed to limit or restrict Developer's right to protest ad valorem taxes. The Developer's decision to protest ad valorem taxes on Assessed Property does not constitute a Default under this Agreement. 6.06 PID Administration and Collection of Assessments. If the City designates an Administrator who shall have the responsibilities provided in the SAP related to the duties and responsibilities of the administration of the PID, the City shall provide the Developer upon request with a copy of the agreement between the City and the Administrator. If the City contracts with a third -party for the collection of Annual Installments of the Assessments, the City shall provide the Developer with a copy of such agreement. Further notwithstanding anything to the contrary contained herein, the City covenants to use diligent, good faith efforts to contract with the Williamson County Tax Assessor -Collector for the collection of the Assessments such that the Assessments will be included on the ad valorem tax bill(s) for the Assessed Properties and will be collected as part of and in the same manner as ad valorem taxes. During the term of this Agreement, the City shall notify the Developer of any change of Administrator or third - party collection of the Assessments. 6.07 Representations and Warranties. PAGE 28 6.07.01 The Developer represents and warrants to the City that: (1) the Developer has the authority to enter into and perform its obligations under this Agreement; (2) the Developer has the financial resources, or the ability to obtain sufficient financial resources, to meet its obligations under this Agreement; (3) any information provided by the Developer for inclusion in a disclosure document for an issue of PID Bonds will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the circumstances under which they were made, not misleading; (4) the person executing this Agreement on behalf of the Developer has been duly authorized to do so; (5) this Agreement is binding upon the Developer in accordance with its terms; and (6) the execution of this Agreement and the performance by the Developer of its obligations under this Agreement do not constitute a breach or event of default by the Developer under any other agreement, instrument, or order to which the Developer is a party or by which the Developer is bound. 6.07.02 If in connection with the issuance of PID Bonds the City is required to deliver a certificate as to tax exemption (a "Tax Certificate") to satisfy requirements of the Internal Revenue Code, the Developer agrees to provide, or cause to be provided, such facts and estimates as the City reasonably considers necessary to enable it to execute and deliver its Tax Certificate. The Developer represents that such facts and estimates will be based on its reasonable expectations on the date of issuance of the PID Bonds and will be, to the knowledge of the officers of the Developer providing such facts and estimates, true, correct and complete as of such date. To the extent that it exercises control or direction over the use or investment of any proceeds from the sale of PID Bonds (including, but not limited to, the use of the Authorized Improvements), the Developer further agrees that it will not knowingly make, or permit to be made, any use or investment of such funds that would cause any of the covenants or agreements of the City contained in a Tax Certificate to be violated or that would otherwise have an adverse effect on the tax-exempt status of the interest payable on the PID Bonds for federal income tax purposes. 6.07.03 The City represents and warrants to the Developer that: (1) the City has the authority to enter into and perform its obligations under this Agreement; (2) the person executing this Agreement on behalf of the City has been duly authorized to do so; (3) this Agreement is binding upon the City in accordance with its terms; and (4) the execution of this Agreement and the performance by the City of its obligations under this Agreement do not constitute a breach or event of PAGE 29 default by the City under any other agreement, instrument, or order to which the City is a party or by which the City is bound. 6.08 Default/Remedies. 6.08.01 If either Party fails to materially perform, observe or comply with any of its covenants, agreements or obligations imposed on such Party by this Agreement (a "Failure") and such Failure is not cured after notice and the expiration of the cure periods provided in this Section, then such Failure shall constitute a "Default." If a Failure is monetary, the non -performing Party shall have ten (10) business days after receipt of written notice of the alleged Failure from the other Party within which to cure the Failure. If a Failure is non -monetary, the non -performing Party shall have thirty (30) calendar days after receipt of written notice from the other Party within which to cure the Failure; provided however, that the cure period for a non -monetary Failure may be extended as allowed under Section 6.08.05. 6.08.02 If the Developer is in Default, the City shall have available all remedies at law or in equity; including, without limitation, the right to withhold payments to Developer under this Agreement. In addition, if the Developer attempts to transfer its interests in this Agreement in violation of Section 6.10, the City, in its sole discretion, shall have the right to terminate this Agreement. 6.08.03 If the City is in Default, the Developer shall have available all remedies at law or in equity; provided, however, no Default by the City shall entitle the Developer to terminate this Agreement. 6.08.04 The City shall give notice of any alleged Failure by the Developer to each Transferee identified in any notice from the Developer, and such Transferees shall have the right, but not the obligation, to cure the alleged Failure within the same cure periods that are provided to the Developer. The election by a Transferee to cure a Failure by the Developer shall constitute a cure by the Developer but shall not obligate the Transferee to be bound by this Agreement unless the Transferee agrees in writing to be bound. 6.08.05 If the performance of a non -monetary covenant or obligation to be performed hereunder by any Party (i.e., not including a covenant or obligation to pay money) is delayed as a result of circumstances which are beyond the control of such Party (which circumstances may include, without limitation, acts of God, pandemics, war, acts of civil disobedience, widespread pestilence, fire or other casualty, shortage of materials, adverse weather conditions such as, by way of PAGE 30 illustration and not limitation, severe rain storms or tornadoes, labor action, strikes, changes in the law affecting the obligations of the Parties hereunder, or similar acts) ("Force Majeure"), the time for such performance shall be extended by the amount of time of the delay directly caused by and relating to such uncontrolled circumstances. The Party claiming delay of performance as a result of any of the foregoing Force Majeure events shall deliver written notice of the commencement of any such delay resulting from such force majeure event not later than three (3) calendar days after the claiming Party becomes aware of the same, unless prevented by such Force Majeure event from doing so, and if the claiming Party fails to so notify the other Party of the occurrence of a Force Majeure event causing such delay, the claiming Party shall not be entitled to avail itself of the provisions for the extension of time for performance contained in this Section. 6.09 Remedies Outside the Agreement. Nothing in this Agreement constitutes a waiver by the City of any remedy the City may have outside this Agreement against the Developer, any Transferee, or any other person or entity involved in the design, construction, or installation of the Authorized Improvements. The City shall not be deemed to waive any defenses or immunities, whether sovereign, governmental, legislative, qualified or otherwise, all such defenses and immunities being expressly retained. The obligations of the Developer hereunder shall be those of a party hereto and not as an owner of property in the PID. Nothing herein shall be construed as affecting the City's or the Developer's rights or duties to perform their respective obligations under other agreements, use regulations, or subdivision requirements relating to the development of property within the PID. 6.10 Transfers. 6.10.01 Except as prohibited by Section 6.10.02, the Developer has the right to convey, transfer, assign, mortgage, pledge, or otherwise encumber, in whole or in part without the consent of (but with notice to) the City, the Developer's right, title, or interest to payments under this Agreement (but not performance obligations) including, but not limited to, any right, title, or interest of the Developer in and to payments of the Reimbursement Obligation, whether such payments are from the PID Reimbursement Fund or from Bond Proceeds (any of the foregoing, a "Transfer," and the person or entity to whom the transfer is made, a "Transferee"); provided, however, no such conveyance, transfer, assignment, mortgage, pledge, or other encumbrance shall be made without prior written consent of the City if such conveyance, transfer, assignment, mortgage, pledge, or other encumbrance would result in (1) the payments contemplated hereunder being pledged to the payment of debt service on PAGE 31 public securities issued by any state of the United States or any political subdivision, and/or (2) the City being viewed as an "obligated person" within the meaning of Rule 15c2-12 of the United States Securities and Exchange Commission, and/or (3) the City being subjected to additional reporting or recordkeeping duties. Notwithstanding the foregoing, no Transfer shall be effective until notice of the Transfer is given to the City. The City may rely on notice of a Transfer received from the Developer without obligation to investigate or confirm the validity of the Transfer. The Developer waives all rights or claims against the City for any funds paid to a third party as a result of a Transfer for which the City received notice 6.10.02 Notwithstanding the generality of this Section 6.10.02, no Transfer is allowed if all or any part of Improvement Area #2 is developed with multifamily rental units. Any attempted Transfer in violation of this Section shall be deemed to be void and unlawful. 6.11 Qualified Tax -Exempt Status. In any calendar year in which PID Bonds are issued, the Developer agrees to pay the City additional costs ("Additional Costs") the City may incur in the issuance of City obligations (the "City Obligations") as described in this Section 6.11 if the City Obligations are deemed not to qualify for the designation of "qualified tax-exempt obligations" (" TEO") as defined in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, as a result of the issuance of PID Bonds by the City in any given year. The City agrees to deposit all funds for the payment of such Additional Costs received under this Section 6.11 into a segregated account of the City, and such funds shall remain separate and apart from all other funds and accounts of the City until December 31 of the calendar year in which the PID Bonds are issued, at which time the City is authorized to utilize such funds for any purpose permitted by law. Additionally, the City will provide the Developer on an annual basis no later than August 15th each year the projected amount of City Obligations to be issued in the upcoming year based on its annual budget process. In the event the City issues PID Bonds prior to the issuance of City Obligations, the City's Financial Advisor shall calculate the estimated Additional Costs based on the market conditions as they exist approximately thirty (30) calendar days prior to the date of the pricing of the PID Bonds (the "Estimated Additional Costs"), and the City shall provide a written invoice to the Developer. Unless otherwise agreed to in writing by the City, the Developer shall pay such Estimated Additional Costs to the City on or before the earlier of (i) ten (10) business days after the date of the City's invoice and (ii) five (5) business days prior to pricing the PID Bonds. The City shall not be required to price or sell any issue of PID Bonds until the Developer has paid to the City the Estimated Additional PAGE 32 Costs related to the PID Bonds then being issued. The Estimated Additional Costs are an estimate of the increased cost to the City to issue its City Obligations as non-QTEO. Upon the City's approval of the City Obligations, the City's Financial Advisor shall calculate the actual Additional Costs to the City of issuing its City Obligations as non-QTEO (the "Actual Increased Costs"). The City will, within five (5) business days of the issuance of the City Obligations, notify the Developer of the Actual Increased Costs. In the event the Actual Increased Costs are less than the Estimated Additional Costs, the City will refund to the Developer the difference between the Actual Increased Costs and the Estimated Additional Costs within ten (10) business days of the date of the City's notice to the Developer of the Actual Increased Costs. If the Actual Increased Costs are more than the Estimated Additional Costs, the Developer will pay to the City the difference between the Actual Increased Costs and the Estimated Additional Costs within ten (10) business days of the date of the City's notice to the Developer of the Actual Increased Costs. If the Developer does not pay the City the difference between the Actual Increased Costs and the Estimated Additional Costs within ten (10) business days of the date of the City's notice to the Developer of the Actual Increased Costs, the Developer shall not be reimbursed for any Developer Advances until such payment is made in full. In the event the City issues City Obligations prior to the issuance of PID Bonds, the City's Financial Advisor shall calculate the estimated Additional Costs based on the market conditions as they exist approximately twenty (20) days prior to the date of the pricing of the City Obligations (the "Estimated Additional City Obligation Costs"), and the City shall provide a written invoice to the Developer. The Developer shall pay such Estimated Additional City Obligation Costs to the City at least ten (10) days prior to pricing the City Obligations. If the Developer has not paid the Estimated Additional City Obligation Costs to the City by the required time, the City, at its option, may elect to designate such City Obligations as QTEO, and the City shall not be required to issue any PID Bonds in such calendar year. The Estimated Additional City Obligation Costs are an estimate of the increased cost to the City to issue its City Obligations as non-QTEO. Upon the City's approval of the City Obligations, the City's Financial Advisor shall calculate the actual Additional Costs to the City of issuing its City Obligations as non-QTEO (the "Actual Increased City Obligation Casts"). The City will, within five (5) business days of the issuance of the City Obligations, notify the Developer of the Actual Increased City Obligation Costs. In the event the Actual Increased City Obligation Costs are less than the Estimated Additional City Obligation Costs, the City will refund to the Developer the difference between the Actual Increased City Obligation Costs and the Estimated Additional City Obligation Costs within ten (10) business days of the date of the City's notice to the Developer of the Actual Increased City Obligation Costs. If the Actual Increased City Obligation Costs are more than the Estimated Additional City Obligation Costs, the Developer will pay to the City the difference between the Actual Increased City PAGE 33 Obligation Costs and the Estimated Additional City Obligation Costs within ten (10) business days of the date of the City's notice to the Developer of the Actual Increased City Obligation Costs. If the Developer does not pay the City the difference between the Actual Increased City Obligation Costs and the Estimated Additional City Obligation Costs within ten (10) business days of the date of the City's notice to the Developer of the Actual Increased City Obligation Costs, the Developer shall not be reimbursed for any Developer Advances until such payment is made in full. To the extent any developer(s) or owner(s) (including the Developer, as applicable) has (have) paid Additional Costs for any particular calendar year, any such Additional Costs paid subsequently by a developer or owner (including the Developer, as applicable) to the City applicable to the same calendar year shall be reimbursed by the City to the developer(s) or owner(s) (including the Developer, as applicable) as necessary so as to put all developers and owners so paying for the same calendar year in the proportion set forth in the next paragraph, said reimbursement to be made by the City within ten (10) business days after its receipt of such subsequent payments of such Additional Costs. The City shall charge Additional Costs attributable to any other developer or owner on whose behalf the City has issued debt in the same manner as described in this Section 6.11, and the Developer shall only be liable for its portion of the Additional Costs under this provision, and if any Additional Costs in excess of the Developer's portion had already been paid to the City under this provision, then such excess of Additional Costs shall be reimbursed to the Developer. The portion owed by the Developer shall be determined by dividing the total Bond Proceeds from any debt issued on behalf of the Developer in such calendar year by the total Bond Proceeds from any debt issued by the City for the benefit of all owners or developers (including the Developer) in such calendar year. If in any calendar year the City issues City Obligations or PID Bonds on its own account that exceed the amount that would otherwise qualify the City for the issuance of bank qualified debt, then no Additional Costs shall be due from the Developer in connection with such PID Bonds. The Additional Costs incurred with respect to such PID Bonds shall be allocated as described above, and if any Additional Costs had already been paid by the Developer to the City for such calendar year, then such excess of Additional Costs shall be reimbursed to the Developer within five (5) business days of the issuance of such City Obligations or PID Bonds, as applicable. Notwithstanding any provision in this Section 6.11 to the contrary, the Parties recognize and agree that the provisions of this Section 6.11 are intended to compensate the City in the event the issuance of PID Bonds prevents the City from issuing other obligations as QTEO and the City may, in its sole discretion, waive the applicability of this Section 6.11 PAGE 34 in any calendar year and such waiver does not impact the applicability of this Section 6.11 in future calendar years. 6.12 Estoppel Certificate. From time to time upon written request of the Developer, the City Manager will execute a written estoppel certificate (1) identifying any obligations of the Developer under this Agreement that are in default or, with the giving of notice or passage of time, would be in default; or (2) stating, if and to the extent true, that to the best knowledge and belief of the City, the Developer is in compliance with its duties and obligations under this Agreement. 6.13 Applicable Law; Venue. This Agreement is being executed and delivered and is intended to be performed in the State of Texas. Except to the extent that the laws of the United States may apply, the substantive laws of the State of Texas shall govern the interpretation and enforcement of this Agreement. In the event of a dispute involving this Agreement, venue shall lie in any court of competent jurisdiction in Williamson County, Texas. 6.14 Notice. Any notice referenced in this Agreement must be in writing and shall be deemed given at the addresses shown below: (1) when delivered by a nationally recognized delivery service such as FedEx or UPS with evidence of delivery signed by any person at the delivery address regardless of whether such person is the named addressee; or (2) 72 hours after deposited with the United States Postal Service, Certified Mail, Return Receipt Requested. To the City: City of Georgetown P.O. Box 409 Georgetown, Texas 78627 or 808 Martin Luther King Jr. St. Georgetown, Texas 78626 Attn: City Manager With a copy to: City of Georgetown P.O. Box 409 Georgetown, Texas 78627 Attn: City Attorney or 809 Martin Luther King Jr. St. Georgetown, Texas 78626 Attn: City Attorney PAGE 35 To the Developer: Lamy 2243 100 Congress Avenue, Suite 1450 Austin, TX 78701 Attn: Bennett Holcomb and to Cordova Real Estate Ventures 5515 Balcones Drive Austin, TX 78731 Attn: Chris Whitworth With a copy to: Metcalfe Wolff Stuart & Williams LLP 221 West 6th Street, Suite 1300 Austin, Texas 78701 Attn: Talley J. Williams Any Party may change its address by delivering notice of the change in accordance with this Section. 6.15 Conflicts; Amendment. In the event of any conflict between this Agreement and any other instrument, document, or agreement by which either Party is bound: (1) first, the provisions and intent of any applicable Indenture shall control, and (2) second, the provisions and intent of this Agreement shall control subject only to the terms of any applicable Indenture. This Agreement may only be amended by written agreement of the Parties. 6.16 Severability. If any provision of this Agreement is held invalid by any court, such holding shall not affect the validity of the remaining provisions. 6.17 Non -Waiver. The failure by a Party to insist upon the strict performance of any provision of this Agreement by the other Party, or the failure by a Party to exercise its rights upon a Default by the other Party, shall not constitute a waiver of such Party's right to insist and demand strict compliance by such other Party with the provisions of this Agreement. 6.18 Third Party Beneficiaries. Nothing in this Agreement is intended to or shall be construed to confer upon any person or entity other than the City, the Developer, and Transferees any rights under or by reason of this Agreement. All provisions of this Agreement shall be for the sole and exclusive benefit of the City, the Developer, and Transferees. PAGE 36 6.19 Counterparts. This Agreement may be executed in multiple counterparts, which, when taken together, shall be deemed one original. 6.20 Iran, Sudan, and Foreign Terrorist Organizations. The Developer represents that neither it nor any of its parent company, wholly- or majority -owned subsidiaries, and other affiliates is a company identified on a list prepared and maintained by the Texas Comptroller of Public Accounts under Section 2252.153 or Section 2270.0201, Texas Government Code, and posted on any of the following pages of such officer's internet website: https:Hcomptroller texas p-ov/purchasing,/docs/sudan-list.gdf, https:Hcomptroller.texas.gov/12urchasinp,/docs/iran-list.pd or https://comptroller.texas.gov/purchasing/docs/fto-list.pdf. The foregoing representation is made solely to comply with Section 2252.152, Texas Government Code, and to the extent such Section does not contravene applicable Federal or State law and excludes the Developer and each of its parent company, wholly- or majority -owned subsidiaries, and other affiliates, if any, that the United States government has affirmatively declared to be excluded from its federal sanctions regime relating to Sudan or Iran or any federal sanctions regime relating to a foreign terrorist organization. The Developer understands "affiliate" to mean any entity that controls, is controlled by, or is under common control with the Developer and exists to make a profit. 6.21 No Boycott of Israel. The Developer hereby verifies that it and its parent company, wholly- or majority -owned subsidiaries, and other affiliates, if any, do not boycott Israel and, to the extent this Agreement is a contract for goods or services, will not boycott Israel during the term of this Agreement. The foregoing verification is made solely to comply with Section 2271.002, Texas Government Code, and to the extent such Section does not contravene applicable Federal or State law. As used in the foregoing verification, "boycott Israel" means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli -controlled territory, but does not include an action made for ordinary business purposes. The Developer understands "affiliate" to mean an entity that controls, is controlled by, or is under common control with the Developer and exists to make a profit. 6.22 Anti -Boycott of Energy Companies. Pursuant to Section 2274.002 (as added by Senate Bill 13 in the 87th Texas Legislature, Regular Session), Texas Government Code, as amended, the Developer hereby verifies that it and its parent company, wholly- or PAGE 37 majority- owned subsidiaries, and other affiliates, if any, do not boycott energy companies and, will not boycott energy companies during the term of this Agreement. The foregoing verification is made solely to comply with Section 2274.002, Texas Government Code, as amended, to the extent Section 2274.002, Texas Government Code does not contravene applicable Texas or federal law. As used in the foregoing verification, "boycott energy companies" shall mean, without an ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company (A) engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel -based energy and does not commit or pledge to meet environmental standards beyond applicable federal and state law; or (B) does business with a company described by (A) above. The Developer understands "affiliate" to mean any entity that controls, is controlled by, or is under common control with the Developer within the meaning of SEC Rule 405, 17. C.F.R. § 230.405, and exists to make a profit. 6.23 Discrimination Against Firearm Entity or Trade Association. Pursuant to Section 2274.002 (as added by Senate Bill 19 in the 87th Texas Legislature, Regular Session), Texas Government Code, as amended, the Developer hereby verifies that it and its parent company, wholly- or majority- owned subsidiaries, and other affiliates, if any, (1) do not have a practice, policy, guidance or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. The foregoing verification is made solely to comply with Section 2274.002, Texas Government Code, as amended, to the extent Section 2274.002, Texas Government Code does not contravene applicable Texas or federal law. As used in the foregoing verification, "discriminate against a firearm entity or firearm trade association" (A) means, with respect to the entity or association, to (i) refuse to engage in the trade of any goods or services with the entity or association based solely on its status as a firearm entity or firearm trade association; (ii) refrain from continuing an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association; or (iii) terminate an existing business relationship with the entity or association based solely on its status as a firearm entity or firearm trade association; and (B) does not include: (i) the established policies of a merchant, retail seller, or platform that restrict or prohibit the listing or selling of ammunition, firearms, or firearm accessories; and (ii) a company's refusal to engage in the trade of any goods or services, decision to refrain from continuing an existing business relationship, or decision to PAGE 38 terminate an existing business relationship: (aa) to comply with federal, state, or local law, policy, or regulations or a directive by a regulatory agency; or (bb) for any traditional business reason that is specific to the customer or potential customer and not based solely on an entity's or association's status as a firearm entity or firearm trade association. The Developer understands "affiliate" to mean any entity that controls, is controlled by, or is under common control with the Developer within the meaning of SEC Rule 405,17. C.F.R. § 230.405, and exists to make a profit. 6.23 Texas Ethics Commission Form 1295 Certificate of Interested Parties. The Developer hereby verifies that it has submitted a disclosure of interested parties to the City pursuant to the requirements of Section 2252.908, Texas Government Code and Chapter 46 of the rules of the Texas Ethics Commission. 6.24 Employment of Undocumented Workers. During the term of this Agreement, and to the extent required under State law, the Developer agrees not to knowingly employ any undocumented workers and, if convicted of a violation under 8 U.S.C. Section 1324a (f), the Developer shall repay the taxes abated herein within 120 days after the date the Developer is notified by the City of such violation, plus interest at the rate of six percent (6%) compounded annually from the date of violation until paid. Pursuant to Section 2264.101 (c), Texas Government Code, a business is not liable for a violation of Chapter 2264 by a subsidiary, affiliate, or franchisee of the business, or by a person with whom the business contracts. 6.25 Sales and Use Tax Exemption. The Parties understand that, as municipally and publicly owned and acquired properties, all costs of materials, other properties and services used in constructing the Authorized Improvements to be acquired by the City are exempt under the current Tax Code from sales and use taxes levied by the State of Texas, or by any city, county, special district, or other political subdivision of the State, as set forth in Section 151.309 of Tax Code and 34 Tex. Admin. Code, sec. 3.291. Upon request of the Developer, and to the extent provided by law, the City will provide such certifications to the Developer and/or to suppliers and contractors as may be required to assure the exemptions claimed herein. The City and the Developer shall cooperate in structuring the construction contracts for the Authorized Improvements to comply with requirements (including those set forth in 34 Tex. Admin. Code, sec. 3.291) for exemption from sales and use taxes. 6.26 Homebuyer Disclosure Program. Developer shall implement and comply with the Homebuyer Disclosure Program attached hereto as Exhibit J". PAGE39 6.27 Exhibit List. The following exhibits are made part of this Agreement for all purposes as if set forth in full: Exhibit A Improvement Area #1 and Improvement Area #2 Boundaries Exhibit B Certificate for Payment Exhibit C Closing Disbursement Request Exhibit D Maintenance Agreement (in the Development and Authorized Improvements A ) Exhibit E Site Layout Plan Exhibit F Buyer Disclosure Program Exhibit G PSAP Exhibit H Chart Regarding Improvement Area #2 Development Exhibit I Improvement Area #2 Improvements [Execution pages follow.] PAGE 40 CITY: CITY OF GEORGETOWN, TEXAS ATTEST: By: - Robyn ensmore, City Secretary APPROVE S TO FORM: By: Skye Masson, City Attorney THE STATE OF TEXAS § § COUNTY OF WILLIAMSON § THIS PID Financing and Reimbursement Agreement for the Bluffview Public Improv meet District is acknowledged before me on this the day of 2023, by Josh Schroeder, Mayor of the City of Georgeto Texas, on behalf of the City of Georget , Texas. Notary Public, State of Texas E KAREN FROSTNotary ID # 1053608-4 My Commission Expires May 24, 2024 PAGE 41 DEVELOPER: LAMY 2243, LTD., a Texas limited partnership By: Bluffview 2021 GP, LLC, its General Partner By: Y Jeremy L. Sml 1, Manager THE STATE OF TEXAS COUNTY OF TRAVIS THIS PID Financing and Reimbursement Agreement for e t fv.ew Public A2021 em nt District is acknowledged before me on this the day of 2022, by Jeremy L. Smitheal, as manager of Bluffview P, LLC, a Texas limited liability company, general partner of Lamy 2243, Ltd., a Texas limited partnership, of behalf of thosv_�tities. Angela R olvera My Commission Expros • ` : � 04/2112025 10 No 6808733 otar Public, State of Texas PAGE 42 EXHIBIT A IMPROVEMENT AREA #1 and IMPROVEMENT AREA #2 EXHIBIT A - COVER PAGE fA- Area #1 #2 EXHIBIT FORM OF CERTIFICATE FOR PAYMENT The undersigned is an agent for Lamy 2243, Ltd., a Texas limited partnership (the "Develop") and requests the City of Georgetown, Texas (the "City') approve payment from the [Bond Improvement Account of the PID Project Fund] [PID Reimbursement Fund] in the amount of U.S. DOLLARS AND 00/100 ($ ) for labor, materials, fees, and/or other general costs related to the creation, acquisition, or construction of certain Authorized Improvements providing a special benefit to property within the Bluffview Public Improvement District. Unless otherwise defined, any capitalized terms used herein shall have the meanings ascribed to them in the PID Financing and Reimbursement Agreement between the Developer and the City. In connection with the above referenced payment request, the Developer represents and warrants to the City as follows: 1. The undersigned is a duly authorized officer of the Developer, is qualified to execute this Certificate for Payment on behalf of the Developer, and is knowledgeable as to the matters set forth herein. 2. The work described in Attachment 1 has been completed. 3. The payment requested for the below referenced Authorized Improvements has not been the subject of any prior payment request submitted for the same work to the City or, if previously requested, no disbursement was made with respect thereto. 4. The amount listed for the Actual Costs of the Authorized Improvements below is a true and accurate representation of the Actual Costs associated with the creation, acquisition, or construction of said Authorized Improvements, and such costs (i) are in compliance with the PID Financing and Reimbursement Agreement, and (ii) are consistent with the SAP. All information and documents in Developer's possession or under its control supporting the amount of Actual Costs claimed (the "Supporting Documentation") is included with this Certification of Payment. The Supporting Documentation is presented in Attachments 1-4 to this Certificate for Payment. Developer will provide additional Supporting Documentation to the City on request. BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE I 5. The Developer is in compliance with the terms and provisions of the PID Financing and Reimbursement Agreement, the SAP, and the Developer Continuing Disclosure Agreement. 6. The Developer has timely paid all ad valorem taxes and annual installments of Assessments it owes or an entity the Developer controls owes, located in the Bluffview Public Improvement District and has no outstanding delinquencies for such assessments. 7. All conditions set forth in the Indenture (as defined in the PID Financing and Reimbursement Agreement) for the payment hereby requested have been satisfied. 8. The Developer confirms that all work with respect to the Authorized Improvements referenced below (or its completed segment) has been completed, and the City has inspected such Authorized Improvement (or its completed segment) and on the City accepted same in writing for ownership by the City or for public use (e.g. public easement), and maintenance by the City, or the HOA (as applicable, pursuant to the Maintenance Agreement required by the Development and Authorized Improvements Agreement). 9. The Developer agrees to cooperate with the City in conducting its review of the requested payment and Supporting Documentation, and agrees to provide additional information and documentation as is reasonably necessary for the City to complete said review. 10. The Developer confirms that [based on the statements provided by the Trustee (as defined in the SAP)][based on all prior amounts paid to Developer from the PID Reimbursement Fund] as of the date of this Certificate for Payment and based on the percentage of completion of the Authorized Improvements as of the date of this Certificate for Payment as verified by the City payment of the amounts requested in this Certificate for Payment, taking into account all prior payments for the Authorized Improvements and the amount of work related to the Authorized Improvements remaining to be completed as of the date of this Certificate for Payment will not cause the amounts on deposit in [the PID Project Fund] [the PID Reimbursement Fund] to fall below the amount necessary to complete the remaining Authorized Improvements taking into account the amounts available to the Developer under its private loan, a line of credit and/or any other form acceptable to the City. BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 2 11. [THIS SECTION ONLY USED FOR DRAWS FROM BOND IMPROVEMENT ACCOUNT OF PROJECT FUND UNDER IMPROVEMENT AREA #1 BOND INDENTURE: With respect to PID Bonds for Improvement Area #1, no payments shall be made that cause the aggregate amount of payments, when taking into account all amounts previously paid from the Improvement Area #1 Bond Improvement Account of the Project Fund (as defined in the Bond Indenture for the Improvement Area #1 Bonds (the "Improvement Area #1 Bond Indenture"), to exceed DOLLARS AND 00/100 ($ ) (the "Authorized Amount"). The Developer confirms that the amounts requested under this Certificate for Payment when taking into account all payments previously made from the [Improvement Area #1 Bond Improvement Account] of the Project Fund shall not cause disbursements from the [Improvement Area #1 Bond Improvement Account] of the Project Fund to exceed the Authorized Amount.] 12. [THIS SECTION ONLY USED FOR DRAWS FROM BOND IMPROVEMENT ACCOUNT OF PROJECT FUND UNDER IMPROVEMENT AREA #2 BOND INDENTURE: With respect to PID Bonds for Improvement Area #2, no payments shall be made that cause the aggregate amount of payments, when taking into account all amounts previously paid from the Improvement Area #2 Bond Improvement Account of the Project Fund (as defined in the Bond Indenture for the Improvement Area #2 Bonds (the "Improvement Area #2 Bond Indenture"), to exceed DOLLARS AND 00/100 ($ ) (the "Authorized Amount"). The Developer confirms that the amounts requested under this Certificate for Payment when taking into account all payments previously made from the Improvement Area #1 Bond Improvement Account of the Project Fund shall not cause disbursements from the Improvement Area #2 Bond Improvement Account of the Project Fund to exceed the Authorized Amount.] 13. Payments requested are as follows: a. X amount to Person or Account Y for Z goods or services. b. Payment / Wire Instructions Attached hereto as Supporting Documentation (see Attachments 2 — 4) are invoices, cancelled checks, receipts, purchase orders, change orders, and similar instruments which support and validate the above requested payments. Also attached hereto are "bills paid„ affidavits and/or lien releases and supporting documentation in the standard form for City construction projects. BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 3 Pursuant to the PID Financing and Reimbursement Agreement, after receiving this payment request, the City has inspected the Authorized Improvements (or completed segment) and confirmed that said work has been completed in accordance with approved plans and all applicable governmental laws, rules, and regulations, and the City has accepted the Authorized Improvements (or completed segments) for ownership, operation, and maintenance. Required Attachments: Supporting Documentation (See Attachments 1-4) BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXMBIT B - PAGE 4 I hereby declare that the above representations and warranties and the Supporting Documentation provided are true and correct. LAMY 2243, LTD. a Texas limited partnership By: Bluffview 2021 GP Its: General Partner LIM Name: Title: Date: BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 5 Attachment I to Certificate for Payment Work Completed under this Certificate for Payment Description of Work Completed under Cost of Work Percentage of NA'ork this Certification for Payment Completed Completed BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 6 Attachment 2 to Certificate for Payment Bills Paid Affidavits or Waivers and Lender Waivers [Attach unconditional waivers and/or bills paid affidavits evidencing that all contractors and subcontractors that performed work described in Attachment 1 has been paid in full for all work completed through the date of the previous Certification for Payment] Attach lender consents or approvals] BLUFFVIEW PID FNANCING AND REIMBURSEMENT AGREEMENTEXHIBrr B - PAGE 7 Attachment 3 to Certificate for Payment Invoice Ledger, Invoices, Receipts, Worksheets INVOICE LEDGER Invoice Ledger Entity: LAMY 2243, LTD. Project: B&I'view Public Improvement District Certification of Payment Form No. Date Vendor Invoice # Invoice Amount Requested Amount Approved Amount Budget Sub- Category Budget Description Attach invoices, receipts, worksheets and other evidence of costs which are in sufficient detail to allow the City to verify the costs for which payment is requested] BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 8 Attachment 4 to Certificate for Payment JOINDER OF PROJECT ENGINEER TO CERTIFICATE FOR PAYMENT The undersigned Project Engineer joins this Certification for Payment solely for the purposes of certifying that the representations made by Lamy 2243, Ltd. in Paragraph 2 of the Certificate for Payment and the Supporting Documentation are true and correct in all material respects. By: Name: Title: Date: BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 9 APPROVAL OF REOUEST BY CITY The City is in receipt of the attached Certificate for Payment, acknowledges the Certificate for Payment, acknowledges that the Authorized Improvements (or a completed segment) covered by the Certificate for Payment have been inspected by the City, and finally accepted by the City for ownership, operation and maintenance, and otherwise finds the Certificate for Payment to be in order. After reviewing the Certificate for Payment, the City approves the Certificate for Payment [and shall include said payments in the City Certificate (as defined in the Indenture) submitted to the Trustee directing payments to be made from the applicable fund in accordance with the Indenture] [and approves direct payment to be made from the PID Reimbursement Fund] to the Developer or to any person designated by the Developer. CITY OF GEORGETOWN, TEXAS By: Name: Title: Date: BLUFFVIEW PID FINANCING AND REIMBURSEMENT AGREEMENTEXHIBIT B - PAGE 10 EXHIBIT C FORM OF CLOSING DISBURSEMENT REQUEST The undersigned is an agent for LAMY 2243, LTD., a Texas limited partnership (the "Developer") and requests the City of Georgetown, Texas (the "City") approve payment from the PID Project Fund in the amount of U.S. DOLLARS AND 00/100 ($ ) to be transferred from the applicable account of the PID Project Fund upon the delivery of the PID Bonds for costs incurred in the establishment, administration, and operation of the Bluffview Public Improvement District (the "District") and costs associated with the issuance of PID Bonds, as follows. Unless otherwise defined, any capitalized terms used herein shall have the meanings ascribed to them in the PID Financing and Reimbursement Agreement between the Developer and the City (the "Reimbursement Agreement"). In connection with the above referenced payment, the Developer represents and warrants to the City as follows: 1. The undersigned is a duly authorized officer of the Developer, is qualified to execute this Closing Disbursement Request on behalf of the Developer, and is knowledgeable as to the matters set forth herein. 2. The payment requested for the below referenced establishment, administration, and operation of the PID and/or costs of issuance of the PID Bonds at the time of the delivery of the PID Bonds have not been the subject of any prior payment request submitted to the City. 3. The amount listed for the below costs is a true and accurate representation of the Actual Costs associated with the establishment, administration and operation of the PID at the time of the delivery of the PID Bonds, and such costs are in compliance with the SAP. 4. The Developer is in compliance with the terms and provisions of the Reimbursement Agreement, the SAP, and the Developer Continuing Disclosure Agreement, and the Indenture. 5. All conditions set forth in the Indenture and the Reimbursement Agreement for the payment hereby requested have been satisfied. BLUFFVIEW PID CONSTRUCTION, FINANCING AND REIMBURSEMENT AGREEMENT EXHIBIT C -PAGE I 6. The Developer agrees to cooperate with the City in conducting its review of the requested payment and agrees to provide additional information and documentation as is reasonably necessary for the City to complete said review. 7. Payments requested hereunder shall be made as directed below: [Information regarding Payee, amount, and deposit instructions attached] I hereby declare that the above representations and warranties are true and correct. LAMY 2243, LTD. a Texas limited partnership By: Bluffview 2021 GP Its: General Partner By: Name: Title: Date: BLUFFVIEW PID CONSTRUCTION, FINANCING AND REIMBURSEMENT AGREEMENT EXHIBIT C - PAGE 2 APPROVAL OF REQUEST BY CITY The City is in receipt of the attached Closing Disbursement Request, acknowledges the Closing Disbursement Request, and finds the Closing Disbursement Request to be in order. After reviewing the Closing Disbursement Request, the City approves the Closing Disbursement Request and shall include said payments in the City Certificate submitted to the Trustee directing payments to be made from the applicable account under the Indenture upon delivery of the PID Bonds. CITY OF GEORGETOWN, TEXAS By: Name: Title: Date: BLUFFVIEW PID CONSTRUCTION, FINANCING AND REIMBURSEMENT AGREEMENT EXHIBIT C - PAGE 3 EXHIBIT D MAINTENANCE AGREEMENT EXHIBIT D -PAGE I MAINTENANCE AGREEMENT NAME OF OWNERS ASSOCIATION STATE OF TEXAS § COUNTY OF WILLIAMSON § This Maintenance Agreement (this "AZrev. ement") is made to be effective as of the Effective Date (defined below) by and between the CITY OF GEORGETOWN, TEXAS, a home -rule city located in Williamson County, Texas (the "C"), and ., a Texas non-profit corporation (the "Association"), (individually, a "Far " and collectively, the "Parties"), and is as follows: RECITALS WHEREAS, the Bluffview Subdivision is a subdivision development and public improvement district within the City's corporate limits known as the Bluffview Public Improvement District (the "District") authorized by Resolution No. 032222- AA passed and approved by the Georgetown City Council on March 22, 2022 (the "PID Creation Resolution"), and which became effective with the recordation of same in the Official Public Records of Williamson County, Texas as Document No. containing approximately 68.080 contiguous acres and having single- family and multi -family residential units; and WHEREAS, the Association is a nonprofit corporation having as its members all persons or entities becoming a holder of all or a portion of the fee simple interest (each, an "Owner") in any residential, final -platted subdivision lot shown on a recorded subdivision plat located in the District (each, a "Lot"), which membership in the Association is not severable from the ownership of the Lot, and created to, among other things, maintain [the 1) Private Open Space, 2) Pedestrian Linkages, Bluffview Drive Enhancements, 3) BNA Enhancements, 4) Southwest Bypass Screening Walls, 5) Drainage Easements, 6) all drainage, water quality, stormwater management ponds and other structures on the Developer Property, other than drainage improvements directly associated with public roadways within the District, and 7) any other Authorized Improvements located within an Enhanced Area Easement,] and otherwise administer the affairs of the Association in accordance with the terms of that certain "Development and Authorized Improvements Agreement" between the City of Georgetown, Texas, a Texas home -rule municipal corporation situated in Williamson County, Texas (the "City"), and Lamy 2243, Ltd., a Texas limited partnership (the "Developer"), and also executed by A.C. Weir Properties, Ltd., a Texas limited Page 1 of 13 partnership ("Weir") for certain purposes, dated effective 2023, (the "Development Agreement"), and the Declaration of Covenants, Conditions and Restrictions for the Bluffview Subdivision (or similarly titled document governing the development, improvement, and sale of land in the District) dated effective , and recorded under Document No. of the Official Public Records of Williamson County, Texas; and WHEREAS, the Association has the authority to levy Association Assessments against the Lots within the District to provide a permanent source of funding for the Association to pay for performing its responsibilities under this Agreement; and WHEREAS, pursuant to the Development Agreement, the Authorized Improvements located, or to be located, within the Enhanced Area Easements are be conveyed to the City, in trust for the public, and will be maintained by the Association; and WHEREAS, the Association acknowledges and agrees that the City has exclusive jurisdiction and control of the Enhanced Area Easements. NOW, THEREFORE, in consideration of the premises, in furtherance of the mutual benefits to be derived by the general public and the residents in the District and members of the Association, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the City and the Association agree as follows: 1. RECITALS AND AGREEMENT ADOPTED. The recitals set out above are true and correct and are hereby incorporated into this Agreement by this reference as though each were set out in full herein. In addition, the Development Agreement is incorporated into this Agreement as if it were set out in full. 2. DEFINITIONS. In addition to the terms defined in the Recitals to this Agreement, the following words, shall, when capitalized, have the following meanings when used in this Agreement: 2.1 "Association Assessments" means the assessments the Association impose for the purposes of, among other things, funding its obligations under this Agreement. 2.2 "Authorized Improvements" has the meaning given in the Development Agreement. Page 2 of 13 2.3 "Bluffview Drive Enhancements" has the meaning given in the Development Agreement. 2.4 Bluffview Natural Area" has the meaning given in the Development Agreement. 2.5 "BNA Enhancements" has the meaning given in the Development Agreement. 2.6 "Drainage Easements" has the meaning given in the Development Agreement. 2.7 Enhanced Area Easements" has the meaning given in the Development Agreement. 2.8 "Parkland" has the meaning given in the Development Agreement. 2.9 "Parkland Improvements" has the meaning given in the Development Agreement. ` 2.10 Pedestrian Linkages" has the meaning given in the Development Agreement. 2.11 "Private Open Space" has the meaning given in the Development Agreement. 2.12 "Southwest Bypass Screening Walls" has the meaning given in the Development Agreement. 3. GRANT OF LICENSE. The City hereby grants the Association, and its duly authorized agents, a license to enter the [Bluffview Natural Area and Enhanced Area Easements] for the purpose of performing, or causing to be performed, the maintenance responsibilities of the Association described in Section 4 of this Agreement. 4. MAINTENANCE, REPAIR, AND REPLACEMENT OBLIGATIONS. 4.1 The Association shall, at its sole cost and expense, perform or cause to be performed, all maintenance, repair, and replacement work for [Authorized Improvements located with the Enhanced Area Easements, the Bluffview Natural Area, and the Private Open Space] including, but not limited to, striping, painting and staining, paving, resurfacing, stonemasonry, regular irrigation, mowing, edging, trimming of shrubs and other plantings, weed and ant control, and irrigation system and trail maintenance and repair. The Association shall be solely responsible for such maintenance, repair, and replacement and the City shall have no obligations for same. 4.2 The Association shall, at its sole cost and expense, perform or cause to be performed, all maintenance, repair and replacement work related to the Drainage Easements including, but not limited to, regular mowing, clearing, and weed control, and keeping the areas free of all trash and debris. Page 3 of 13 4.3 If damages to public infrastructure occur as a result of poor or inadequate maintenance of same, the Association shall pay the City for full reimbursement of all reasonable costs the City incurs repairing damages to the public infrastructure. 4.4 Beginning after the Effective Date, between the dates December 1st and February 28th of the following year, and any time there is a possibility of freezing temperatures, the Association shall turn off the irrigation systems' timers and shall only operate the irrigation systems manually in order to prevent the icing of improved areas and equipment. 5. NO LIENS. The Association shall not cause, suffer or allow any liens to be placed on [the Bluffview Natural Area or any Enhanced Area Easement.] 6. ASSOCIATION ASSESSMENTS. 6.1 The Association shall levy Association Assessments in such amounts necessary to perform its responsibilities under this Agreement. 6.2 The Association shall also levy Association Assessments in amounts, as reasonably determined by the City, necessary to replace any [Authorized Improvements located within the Private Open Space, Bluffview Natural Area and Enhanced Area Easements] at the end of their useful life. 7. CITY RIGHTS AND RESPONSIBILITIES. 7.1 This Agreement is expressly subject and subordinate to the present and future right of the City, its successors, assigns, lessees, grantees, and licensees, to construct, install, establish, maintain, use, operate, and renew any public utility facilities, or franchised public utilities, on, over, or under the [Bluffview Natural Area and all Enhanced Area Easements]. 7.2 The City shall be responsible for maintaining the Parkland Improvements within the Parkland. 7.3 Nothing in this Agreement shall be construed to limit in any way the power of the City to alter or improve the [Bluffview Natural Area, Enhanced Area Easements, Parkland, Parkland Improvements, or any public Drainage Easements ]pursuant to official action by the City or its successors. The City shall endeavor to provide the Association with notice of proposed alternations or improvements, but shall be under no obligation to do so prior to commencement of work. 8. INSURANCE. Page 4 of 13 8.1 Prior to the commencement of any work under this Agreement, the Association shall furnish copies of all required endorsements and an original completed Certificate(s) of Insurance to the City's City Manager, which shall be clearly labeled with the legal name of the Association in the Description of Operations block of the Certificate. The Certificate(s) shall be completed by an agent and signed by a person authorized by that insurer to bind coverage on its behalf. The City will not accept Memorandum of Insurance or Binders as proof of insurance. The Certificate(s) or form must have the agent's signature, including the signer's company affiliation, title and phone number, and be mailed, with copies of all applicable endorsements, directly from the insurer's authorized representative to the City. Failure to obtain and maintain the required insurance shall constitute a material default of this Agreement. The City shall have no duty to perform under this Agreement until such Certificate and endorsements have been received and approved by the City's City Manager. No officer or employee, other than the City's City Manager, shall have authority to waive this requirement. 8.2 Notwithstanding the provisions of Section 8.3 below, the City reserves the right to review the insurance requirements of this Article during the effective period of this Agreement and any extension or renewal hereof and to modify insurance coverages and their limits when deemed necessary and prudent by the City's City Manager based upon changes in statutory law, court decisions, or circumstances surrounding this Agreement. In no instance will the City allow modification at the request of the Association whereupon the Citymay incur increased risk. 8.3 The Association's financial integrity is of interest to the City; therefore, subject to the Association's right to maintain reasonable deductibles in such amounts as are approved by the City, the Association shall obtain and maintain in full force and effect for the duration of this Agreement, and any extension hereof, at the Association's sole expense, insurance coverage written on an occurrence basis, by companies authorized and admitted to do business in the State of Texas and with an A.M. Best's rating of no less than A- (VII), in the following types and for an amount not less than the amount listed: Page 5 of 13 orkers' Compensation ployers' Liability mmercial General Liability Insurance lude coverage for the following: Premises operations Eb. Independent Contractors Products/completed operations Personal Injury Contractual Liability Ef. Environmental Impairment/Impact Sufficiently broad to cover disposal liability {g. Broad form property damage, to incluc Eire legal liability Automobile Liability vehicle on -owned vehicle ired Vehicles tutory 1,000,000 / $1,000,000 / $1,000,000 or Bodily Injury and Property >amage of $1,000,000 per ccurrence; $2,000,000 General ►ggregate, or its equivalent in Tmbrella or Excess Liability age .ombined Single Limit for Bodily ljury and Property Damage of 1,000,000 per occurrence *May be waived by the City Manager if not applicable to activities performed by the Association 8.4 The City shall be entitled, upon request and without expense, to receive copies of the policies, declaration page and all endorsements thereto as they apply to the limits required by the City, and may require the deletion, revision, or modification of particular policy terms, conditions, limitations or exclusions (except where policy provisions are established by law or regulation binding upon either of the parties hereto or the underwriter of any such policies) as may be required to comply with the terms of this Agreement. The Association shall be required to comply with any such requests and shall submit a copy of the replacement Certificate of insurance to the City at the address provided below within 30 days of the Page 6 of 13 requested change. The Association shall pay any costs incurred resulting from said changes. City of Georgetown Attn. City Manager P.O. Box 409 Georgetown, TX 78627 8.5 The Association agrees that with respect to the above required insurance, all insurance policies are to contain or be endorsed to contain the following provisions: 8.5.1 Name the City, its officers, officials, employees, volunteers, and elected representatives as additional insured's by endorsement, as respects operations and activities of, or on behalf of, the named insured performed under contract with the City, with the exception of the workers' compensation and professional liability policies; and 8.5.2 Provide for an endorsement that the "other insurance" clause shall not apply to the City when the City is an additional insured shown on the policy; and 8.5.3 Workers' compensation and employers' liability policies will provide a waiver of subrogation in favor of the City. 8.6 The Association agrees to give the City written notice of any suspension, cancellation, non -renewal or material change in coverage of any of the insurance policies required to be obtained and maintained by the Association under the terms of this Agreement. Within five (5) calendar days of a suspension, cancellation or non -renewal of coverage, the Association shall provide a replacement Certificate of Insurance and applicable endorsements to the City. The City shall have the option to suspend the Association's authorization and liability under this Agreement should there be a lapse in coverage at any time during this Agreement. Failure to provide and to maintain the required insurance shall constitute a material breach of this Agreement. 8.7 Nothing herein contained shall be construed as limiting in any way the extent to which the Association may be held responsible for payments of damages to persons or property resulting from the Association's performance of the work covered under this Agreement. Page 7 of 13 8.8 It is agreed that the Association's insurance shall be deemed primary and non- contributory with respect to any insurance or self-insurance carried by the City for liability arising out of operations under this Agreement. 8.9 It is understood and agreed that the insurance required is in addition to and separate from any other obligation contained in this Agreement. 9. INDEMNIFICATION. THE ASSOCIATION INDEMNIFIES THE CITY ONLY FOR CLAIMS ATTRIBUTED TO THE ASSOCIATION AND THE ASSOCIATION ASSUMES ENTIRE RESPONSIBILITY AND LIABILITY FOR ANY CLAIM OR ACTIONS BASED ON OR ARISING OUT OF INJURIES, INCLUDING DEATH, TO PERSONS OR DAMAGES TO OR DESTRUCTION OF PROPERTY, SUSTAINED OR ALLEGED TO HAVE BEEN SUSTAINED IN CONNECTION WITH OR TO HAVE ARISEN OUT OF OR INCIDENTAL TO THE PERFORMANCE OF THE MAINTENANCE SERVICES DESCRIBED IN PARAGRAPH 2.1 BY THE ASSOCIATION, ITS AGENTS AND EMPLOYEES, AND ITS SUBCONTRACTORS, THEIR AGENTS AND EMPLOYEES. 10. TERMINATION 10.1 Termination by the Association. This Agreement may not be terminated by the Association. 10.2 Termination by the City This Agreement may be terminated at any time by the City, if such termination is reasonably required by the public interest, after providing at least 30 days written notice to the Association. Circumstances under which the City may revoke this Agreement, pursuant to this subsection include, but are not limited to, the following: 10.2.1 Use of [the Bluffview Natural Area or an Enhanced Area Easement] becomes necessary for a public purpose; 10.2.2 Despite 30 days written notice, the Association fails to maintain or make necessary alterations to prevent deterioration of the aesthetic or functional integrity of items it is required to maintain, repair, and replace; or 10.2.3 The Association fails to comply with the terms and conditions of this Agreement, including but not limited to, the insurance requirements specified herein. Page 8 of 13 10.3 Once this Agreement has been terminated, the City will perform maintenance only as consistent with the level of maintenance of other such City improvements, if any. 11. ASSIGNMENT. The Association shall not assign, sublet, or transfer its interest in this Agreement without prior written consent of the City, which may be withheld for any reason. If such consent is granted, it shall then be the duty of the Association, its successors and assigns, to give prompt written notice to the City of any assignment or transfer of any of the Association's rights in this Agreement. 12. MISCELLANEOUS PROVISIONS. 12.1 Laws Observance. The Association shall not do, nor suffer to be done, anything on the Parkland during the term of this Agreement in violation of the laws of the United States, the State of Texas, or any of the ordinances of the City. 12.2 No Waiver. No waiver by the City of any default or breach of any covenant, condition, or stipulation herein contained shall be treated as a waiver of any subsequent default or breach of the same or any other covenant, condition, or stipulation hereof. 12.3 Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained herein. 12.4 Notice. Any notices required or appropriate under this Agreement shall be given in writing to the Association at the address shown below, and to the City at City of Georgetown, Attn. City Manager, P.O. Box 409, Georgetown, TX 78627. 12.5 Headings. The paragraph headings contained herein are for convenience of reference and are not intended to define, extend, or limit any provisions of this Agreement. 12.6 Jurisdiction and Venue. This Agreement will be interpreted according to the Constitution and laws of the State of Texas. Venue of any court action brought directly or indirectly by reason of this Agreement shall be in Williamson County, Texas. This Agreement is made and is to be performed in Williamson County, Texas, and is governed by the laws of the State of Texas. 12.7 Authorization. The signers of this Agreement each hereby represents that he or she has full authority to execute this Agreement on behalf of the Party for which he or she is acting. 12.8 Entire Agreement. This Agreement and any attached exhibits contain the final and entire agreement between the Parties hereto and contain all of the terms Page 9 of 13 and conditions agreed upon, and supersedes all other agreements, oral or otherwise, regarding the maintenance of the Parkland, none of which shall hereafter be deemed to exist or to bind the Parties hereto; it being the intent of the Parties that neither shall be bound by any term, condition, or representation not herein written. Page 10 of 13 EXECUTED to be effective as of the date of final signature below (the "I ffectivc Date"). THE ASSOCIATION: By: Name: Title: Address for Notice: THE STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me this 202_ by a Texas non-profit corporation on behalf of said corporation. day of President of B3 -: NOTARY PUBLIC, STATE OF TEXAS Page 11 of 13 THE CITY: City of Georgetown, Texas, a home -rule municipality Josh Schroeder, Mayor ATTEST: 32 Robyn Densmore, City Secretary APPROVED AS TO FORM: am Skye Masson, City Attorney THE STATE OF TEXAS § COUNTY OF WILLIAMSON § This instrument was acknowledged before me this day of 202_ by Josh Schroeder, Mayor of the City of Georgetown, Texas, a home -rule municipality, on behalf of the City of Georgetown, Texas. By: NOTARY PUBLIC, STATE OF TEXAS Page 12 of 13 ACKNOWLEDGEMENT OF DEVELOPER By the signature of its duly authorized representative appearing below, LAMY 2243, Ltd., a Texas limited partnership, acknowledges its obligations under Section "Maintenance Agreement, set forth in that certain "Development and Authorized Improvements Agreement," dated to be effective on , 2023 between LAMY 2243, Ltd. (as "Developer") and the City of Georgetown, Texas. LAMY 2243, LTD., a Texas limited partnership By: Bluffview 2021 GP, LLC, a Texas limited liability company, its General Partner By: Name: Title: STATE OF TEXAS § § COUNTY OF TRAVIS § This instrument was acknowledged before me on this the _ day of 2023, by of Bluffview 2021 GP, LLC, a Texas limited liability company, as General Partner of LAMY 2243, LTD., a Texas limited partnership, on behalf of said entities. (SEAL) Notary Public, State of Texas Page 13 of 13 EXHIBIT E SITE LAYOUT PLAN EXHIBIT E -PAGE I �. \ '_ \ �- �i EXHIBIT F BLUFFVIEW PUBLIC IMPROVEMENT DISTRICT LOT TYPE BUYER DISCLOSURE BUYER DISCLOSURE PROGRAM 1. A Builder' for an Assessed Property shall provide each residential homebuyer or purchaser of commercial property (the 'Buyer") with the "NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT" in accordance with the PID Act and in the form of the applicable buyer disclosure attached to the SAP as Exhibit L-1, Exhibit L-2 and Exhibit L-3. 2. A Builder for an Assessed Property shall provide evidence of compliance with 1 above, signed by such Buyer, to the City upon receipt of written request by the City which sets forth the City's mailing address and other contact information. 3. A Builder for an Assessed Property shall prominently display signage provided by the Developer or the PID Administrator in the Builder's model homes, if any, located within the Property. 4. If prepared and provided by the City and approved by Developer (such approval not to be unreasonably withheld), a Builder for an Assessed Property shall distribute informational brochures about the existence and effect of the District in prospective homebuyer sales packets. 5. A Builder shall include Assessments in estimated property taxes, if such Builder estimates monthly ownership costs for prospective homebuyers for an Assessed Property. 6. The Developer must post signage along the main entry/exits located at the boundaries of the District that identifies the area as a public improvement district. All signage shall be clearly visible to all motorists entering and exiting the District. ' 'Builder" means a commercial builder who is in the business of (a) constructing and/or selling residences to individual home buyers and/or (b) developing, constructing and /or selling commercial property to end users (e.g., multifamily, office). EXHIBIT F — PAGE 1 EXHIBIT G PRELIMINARY SERVICE AND ASSESSMENT PLAN EXHIBIT G - PAGE I Bluffview Public Improvement District PRELIMINARY SERVICE AND ASSESSMENT PLAN FEBRUARY 7, 2023 TABLE OF CONTENTS Tableof Contents.........................................................................................................................— 1 Introduction.................................................................................................................................... 2 SectionI: Definitions ............................ ......................................................................................... ..3 Section II: The District ..................................................................................... .............................. 10 Section III: Authorized Improvements.......................................................................................... 10 SectionIV: Service Plan................................................................................................................. 14 SectionV: Assessment Plan.......................................................................................................... 14 Section VI: Terms of the Assessments.......................................................................................... 17 SectionVII: Assessment Roll......................................................................................................... 23 Section Vill: Additional Provisions................................................................................................ 23 Listof Exhibits............................................................................................................................... 25 Exhibit A-1— District Legal Description......................................................................................... 26 Exhibit A-2 — Improvement Area #1 Legal Description................................................................. 30 Exhibit A-3 — Improvement Area #2 Legal Description................................................................. 31 Exhibit B— District Boundary Map................................................................................................ 32 ExhibitC—Authorized Improvements..........................................................................................33 Exhibit D — Service Plan — Five Year Plan...................................................................................... 34 Exhibit E — Service Plan — Sources and Uses................................................................................. 35 ExhibitF — Assessment Roll........................................................................................................... 36 Exhibit G — Improvement Area #1 Annual Installments............................................................... 37 Exhibit H — Maximum Assessment per Lot Type........................................................................... 38 Exhibit I — Maps of Authorized Improvements............................................................................. 39 Exhibit J — Lot Type Classification Map......................................................................................... 45 Exhibit K — Notice of PID Assessment Termination...................................................................... 46 Exhibit L-1— Lot Type 1 Buyer Disclosure..................................................................................... 49 Exhibit L-2 — Lot Type 2 Buyer Disclosure..................................................................................... 55 Exhibit L-3 — Lot Type 3 Buyer Disclosure..................................................................................... 61 BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 1 INTRODUCTION Capitalized terms used in this Service and Assessment Plan shall have the meanings given to them in Section I unless otherwise defined in this Service and Assessment Plan or unless the context in which a term is used clearly requires a different meaning. Unless otherwise defined, a reference to a "Section" or an "Exhibit" shall be a reference to a Section of this Service and Assessment Plan or an Exhibit attached to and made a part of this Service and Assessment Plan for all purposes. On March 22, 2022, the City passed and approved Resolution No. 032222-AA, authorizing the creation of the District in accordance with the PID Act, which authorization was effective upon publication as required by the PID Act. The purpose of the District is to finance the Actual Costs of the Authorized Improvements for the benefit of property within the District. The District contains approximately 68.080 acres within the corporate limits of the City, as described legally by metes and bounds on Exhibit A-1 and as depicted by the map on Exhibit B. The PID Act requires a service plan covering a period of at least five years and defining the annual indebtedness and projected cost of the Authorized Improvements. The Service Plan is contained in Section IV. The PID Act requires that the Service Plan include an assessment plan that assesses the Actual Costs of the Authorized Improvements against Assessed Property within the District based on the special benefits conferred on such property by the Authorized Improvements. The Assessment Plan is contained in Section V. The PID Act requires an Assessment Roll that states the Assessment against each Parcel determined by the method chosen by the City. The Assessment against each Assessed Property must be sufficient to pay the share of the Actual Costs apportioned to the Assessed Property and cannot exceed the special benefit conferred on the Assessed Property by the Authorized Improvements. The Assessment Roll is contained in Exhibit F. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 2 SECTION I: DEFINITIONS "Actual Costs" mean, with respect to Authorized Improvements, the actual costs paid or incurred by or on behalf of the Owner of the District: (1) to plan, design, acquire, construct, install, and dedicate such improvements to the City; (2) to prepare plans, specifications (including bid packages), contracts, and as -built drawings; (3) to obtain zoning, licenses, plan approvals, permits, inspections, and other governmental approvals; (4) for third -party professional consulting services including but not limited to, engineering, surveying, geotechnical, land planning, architectural, landscaping, legal, accounting, and appraisals; (5) of labor, materials, equipment, fixtures, payment and performance bonds and other construction security, and insurance premiums; and (6) to implement, administer, and manage the above -described activities, including a 4% construction management fee. Actual Costs shall not include general contractor's fees in an amount that exceeds a percentage equal to the percentage of work completed or construction management fees in an amount that exceeds an amount equal to the construction management fee amortized in approximately equal monthly installments over the term of the applicable construction management contract. Amounts expended for costs described in subsection (3), (4), and (6) above shall be excluded from the amount upon which the general contractor and construction management fees are calculated. "Additional Interest" means the amount collected by application of the Additional Interest Rate if PID Bonds are issued. "Additional Interest Rate" means the 0.50% additional interest rate charged on an Assessment as authorized by Section 372.018 of the PID Act. The Additional Interest Rate is not charged on Assessments securing the Reimbursement Obligation. "Administrator" means the City or the person or independent firm designated by the City who shall have the responsibility provided in this Service and Assessment Plan, the Indenture, or any other agreement or document approved by the City Council related to the duties and responsibility of the administration of the District. "Annual Collection Costs" means the actual or budgeted costs and expenses relating to collecting the Annual Installments, including, but not limited to, costs and expenses for: (1) the Administrator and City staff; (2) legal counsel, engineers, accountants, financial advisors, and other consultants engaged by the City; (3) calculating, collecting, and maintaining records with respect to Assessments and Annual Installments; (4) preparing and maintaining records with respect to Assessment Rolls and Annual Service Plan Updates; (5) paying, and redeeming PID Bonds, if issued; (6) investing or depositing Assessments and Annual Installments; (7) complying with this Service and Assessment Plan and the PID Act with respect to the administration of the BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 3 District, including continuing disclosure requirements; and (8) the paying agent/registrar and Trustee in connection with PID Bonds, if issued, including their respective legal counsel. Annual Collection Costs collected but not expended in any year shall be carried forward and applied to reduce Annual Collection Costs for subsequent years. "Annual Installment" means the annual installment payment of an Assessment as calculated by the Administrator and approved by the City Council, that may include: (1) principal; (2) interest; (3) Annual Collection Costs; and (4) Additional Interest, as applicable. "Annual Service Plan Update" means an update to this Service and Assessment Plan prepared no less frequently than annually by the Administrator and approved by the City Council, in accordance with the PID Act. "Assessed Property" means any Parcel within the District that benefits from the Authorized Improvements and on which an Assessment is levied as shown on the Assessment Roll and which includes any and all Parcels within the District other than Non -Benefited Property. "Assessment" means an assessment levied against a Parcel and imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on the Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and in the PID Act. "Assessment Ordinance" means the ordinance adopted by the City Council in accordance with the PID Act that approves the Service and Assessment Plan and levies the Assessment on all or a portion of the Assessed Property within the District, as shown on any Assessment Roll. "Assessment Plan" means the methodology employed to assess the Actual Costs of the Authorized Improvements against Assessed Property within the District based on the special benefits conferred on such property by the Authorized Improvements, as more specifically described in Section V. "Assessment Roll" means the assessment roll for the Assessed Property within the District and included in this Service and Assessment Plan as Exhibit F, as updated, modified, or amended from time to time in accordance with the procedures set forth herein and in the PID Act, including updates prepared in connection with the issuance of PID Bonds, if issued, or in connection with any Annual Service Plan Update. "Authorized Improvements" means Public Improvements authorized by Section 372.003 of the PID Act, including District Formation Expenses, First Year Annual Collections Costs (as described BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 4 in Section III (D) herein), and Bond Issuance Costs, if PID Bonds are issued, as more specifically described in Section Ill. "Bond Issuance Costs" mean the costs associated with issuing PID Bonds, if issued, including but not limited to attorney fees, financial advisoryfees, consultant fees, appraisal fees, printing costs, publication costs, City costs, capitalized interest, reserve fund requirements, underwriter discount, fees charged by the Texas Attorney General, and any other cost or expense directly associated with the issuance of PID Bonds, if bonds are issued. "City" means the City of Georgetown, Texas. "City Council" means the governing body of the City. "County" means Williamson County, Texas. "Creation Resolution" means Resolution No. 032222-AA, approved by the City Council on March 22, 2022, which authorized the creation of the District. "Delinquent Collection Costs" mean, for an Assessed Property, interest, penalties, and other costs and expenses authorized by the PID Act that directly or indirectly relate to the collection of delinquent Assessments, delinquent Annual Installments, or any other delinquent amounts due under this SAP, including costs and expenses to foreclose liens. "District" means the approximately 68.080 acres within the corporate limits of the City, as described legally by metes and bounds on Exhibit A-1 and as depicted by the map on Exhibit B. "District Formation Expenses" means costs incurred creating the District, including attorney fees, consultant fees, and other fees and expenses related to the formation of the District and the levy of Assessments. "Estimated Buildout Value" means the estimated buildout value of an Assessed Property at the time Assessments are levied, and shall be determined by the Administrator and confirmed by the City Council by considering such factors as density, lot size, proximity to amenities, view premiums, location, market conditions, historical sales, builder contracts, discussions with homebuilders, reports from third party consultants, or any other information that may impact value. "Improvement Area #1" means approximately 44.3 acres located within the District, as shown on Exhibit B and more specifically described in Exhibit A-2. "Improvement Area #1 Annual Installment" means the annual installment payment of the Improvement Area #1 Special Assessment as calculated by the Administrator and approved by BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 5 the City Council that may include: (1) principal, (2) interest, (3) Administrative Expenses, and (4) Additional Interest, if PID Bonds are issued. "Improvement Area #1 Assessed Property" means any Parcel within Improvement Area #1 against which an Improvement Area #1 Special Assessment is levied. "Improvement Area #1 Assessment Roll" means the assessment roll for the Improvement Area #1 Assessed Property within the District and included in this Service and Assessment Plan as Exhibit F, as updated, modified, or amended from time to time in accordance with the procedures set forth herein and in the PID Act, including updates prepared in connection with the issuance of PID Bonds or in connection with any Annual Service Plan Update. "Improvement Area #1 Improvements" mean Authorized Improvements which only benefit Improvement Area #1 Assessed Property as described in Section III and as shown on Exhibit I. "Improvement Area #1 Projects" mean the Improvement Area #1 Improvements and Improvement Area #1's allocable share of the Major Improvements. "Improvement Area #1 Special Assessment" means $4,225,000.00 in Assessments levied against Assessed Property within Improvement Area #1 and imposed pursuant to an Assessment Ordinance, as shown on the Improvement Area #1 Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and in the PID Act. "Improvement Area #1 Reimbursement Obligation" means an amount not to exceed $4,225,000.00 payable from Assessments to be paid to the Owner pursuant to the Reimbursement Agreement. "Improvement Area #2" means approximately 24.3 acres located within the District, as shown on Exhibit B and more specifically described in Exhibit A-3. "Improvement Area #2 Bonds" mean bonds issued to fund Improvement Area #2 Improvements (or a portion thereof) that are secured by Assessments levied on Assessed Property within Improvement Area #2. "Improvement Area #2 Improvements" mean those Authorized Improvements which will confer a special benefit solely on the related Improvement Area #2. "Indenture" means an Indenture of Trust entered into in connection with the issuance of PID Bonds, as amended or supplemented from time to time, between the City and the Trustee setting forth terms and conditions related to the PID Bonds, if issued. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 6 "Landowner Agreement" means that certain Landowner Agreement between the City and Owner dated , as may be further amended. "Lot" means (1) for any portion of the District for which a subdivision plat has been recorded in the official public records of the County, a tract of land described as a "lot" in such subdivision plat, and (2) for any portion of the District for which a subdivision plat has not been recorded in the official public records of the County, a tract of land anticipated to be described as a "lot" in a final recorded subdivision plat as shown on a concept plan or preliminary plat. "Lot Type" means a classification of final building Lots with similar characteristics (e.g. lot size, home product, buildout value, etc.), as determined by the Administrator and confirmed and approved by the City Council. In the case of single-family residential Lots, the Lot Type shall be further defined by classifying the residential Lots by the Estimated Buildout Value of the Lot as calculated by the Administrator and confirmed and approved by the City Council. "Lot Type 1" means a Lot designated as a 50' residential lot within Improvement Area #1 by the Owner, as shown on the map attached as Exhibit L-1. "Lot Type 2" means a Lot designated as a 60' residential lot within Improvement Area #1 by the Owner, as shown on the map attached as Exhibit L-2. "Lot Type 3" means a Lot designated as a 60' "Bluffs" residential lot within Improvement Area #1 by the Owner, as shown on the map attached as Exhibit L-2. "Major Improvements" mean improvements authorized by Section 372.003 of the PID Act that confer a special benefit to the Assessed Property within the District and are eligible to be repaid with Assessments. These improvements are specifically described in Section III.A and are shown on Exhibit I. "Maximum Assessment" means the amount shown for each Lot Type on Exhibit H. The Maximum Assessment shall be reduced annually by the principal portion of the Annual Installment. "Non -Benefited Property" means Parcels within the boundaries of the District that accrue no special benefit from Authorized Improvements as determined by the City Council. "Owner" means Lamy 2243 Ltd., and any successor owner of property within the District, or any portion thereof. "Owner Funded Improvements" mean the improvements that are funded entirely by the Owner and are not eligible for repayment by Assessments; provided that, for the avoidance of doubt, BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 7 such term does not include the improvements to be funded entirely by the Owner without reimbursement to the extent the amount of Authorized Improvements exceeds the amount of the Reimbursement Obligation. "Parcel(s)" means a property within the boundaries of the District, identified by either a tax map identification number assigned by the Williamson Central Appraisal District for real property tax purposes, by metes and bounds description, by lot and block number in a final subdivision plat recorded in the official public records of the County, or by any other means as determined by the City Council. "PID Act" means Chapter 372, Texas Local Government Code, as amended. "PID Bonds" mean any bonds issued in accordance with the PID Act, if applicable, that are secured by Assessments. "Prepayment" means the payment of all or a portion of an Assessment before the due date thereof. Amounts received at the time of a Prepayment which represent a payment of principal, interest, or penalties on a delinquent installment of Assessment are not to be considered a Prepayment, but rather are to be treated as a payment of the regularly scheduled Assessment. "Prepayment Costs" mean interest, including Additional Interest (if applicable), and Annual Collection Costs incurred up to the date of Prepayment. "Reimbursement Agreement" means the "PID Financing and Reimbursement Agreement Bluffview Public Improvement District" between the City and the Owner pursuant to which the City agrees to levy Assessments on an improvement area and all or a portion of such Assessments are paid to the Owner to reimburse the Actual Costs related to such Improvement Area. "Reimbursement Obligation" means an amount not to exceed $15,000,000 as provided in Section 2(c) of the Creation Resolution, to be paid to the Owner pursuant to the Reimbursement Agreement. "Service and Assessment Plan" or "SAP" means this Service and Assessment Plan as it may be modified, amended, supplemented, and updated from time to time. "Service Plan" covers a period of at least five years and defines the annual indebtedness and projected costs of the Authorized Improvements, more specifically described in Section IV. "Taken Property" shall have the meaning assigned to such term in Section VI.F. "Taking" shall have the meaning assigned to such term in Section VI.F. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 8 "Trigger Date" means, for each Parcel, the earlier of: (1) the date a final plat is filed and recorded in the real property records of the County which creates the Parcel, or (2) the date PID Bonds, if issued, secured by Assessments levied on the Parcel are issued. If the Trigger Date occurs on or before July 3111 of the then current year, then Assessments will be due the January 315t of the following year. If the Trigger Date occurs after July 315Y of the then current year, then the Assessments will be due on the second January 315Y following the Trigger Date. Collection of the Annual Installments will in no case occur later than the two-year anniversary date of the levy of Assessments on the Parcel. "Trustee" means the trustee (or successor trustee) under an Indenture. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 9 SECTION II: THE DISTRICT The District includes approximately 68.080 acres within the corporate limits of the City, as described legally by metes and bounds on Exhibit A-1 and as depicted by the map on Exhibit B. Development of the District is anticipated to include 105 single-family homes and 181 residential condominiums as well as associated rights -of -way, landscaping, and infrastructure necessary to provide roadways, drainage, and utilities to property within the District. Improvement Area #1 includes approximately 44.3 acres as more particularly described on Exhibit A-2 and depicted on Exhibit B. Development of Improvement Area #1 is anticipated to contain 105 single-family homes. It is anticipated there will be an additional Improvement Area #2 within the District. As the Improvement Area #2 is developed and in connection with the issuance of any Improvement Area #2 Bonds, or the levy of Assessments in Improvement Area #2 pursuant to a Reimbursement Agreement, this Service and Assessment Plan will be amended to update the Exhibits. A map of the property that will comprise the Improvement Area #2 is depicted on Exhibit B. SECTION III: AUTHORIZED IMPROVEMENTS The City, based on information provided by the Owner and its engineer and review by the City staff and by third -party consultants retained by the City, determined that the Authorized Improvements confer a special benefit on the Assessed Property. Major Improvements will be designed and constructed in accordance with City standards and will be owned and operated by the City once accepted unless specifically stated below. The budget for the Authorized Improvements, as well as the allocation of the Actual Costs of the Authorized Improvements, is shown on Exhibit C. A. Major Improvements • Street and Parkland Improvements The street improvements include clearing and grubbing, excavation/embankment, subgrade preparation, flexible base, Hot Mix Asphalt Concrete, curb and gutter, traffic control, concrete sidewalk/path/trail, trail low water crossing, sidewalk ramps, street marking and signs, saw cut and tie to existing pavement, and tree protection. In addition to the entrance road from FM 2234 to the Park Entry Drive , the Street and Parkland Improvements specifically include the following: o Parkland Entry Road — Includes the roadway to be constructed by the Owner in conformance with the UDC's standards for driveways, except as follows: (a) the BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 10 roadway shall be at least 24 feet wide (measured back of curb to back of curb); (b) the roadway shall have a maximum slope of 15%; (c) the roadway shall have curbs, but the type of curbing may vary (as long as the type is allowed by the UDC); (d) the roadway shall have a 5-foot wide concrete sidewalk on one side following the slope of the centerline of the Parkland Entry Road and which is required to comply with the ADA requirements for sidewalk slopes unless the sidewalk slope falls into an exception within the ADA and/or the regulations implementing the ADA codified at 28 C.F.R. Chs. 35 (title II) and 36 (title II); (e) the roadway shall include the Fire Truck Turnaround Easement. The Parkland Entry Road shall commence at the terminus of Bluffview Drive on the District and terminate at the Trailhead Parking Lot on the Additional Weir Parkland. o Parkland Entry Sign - includes a sign located at the head of the trailhead parking lot near the area where the Bluffview Trail begins, and which is 12 feet high and 12 feet wide, with letters stating "South San Gabriel River Trailhead" and consisting of native stone and metal. o Trailhead Parking Lot - includes a paved parking lot meeting the standards for parking lots in the UDC to be constructed by the Owner on the Additional Weir Parkland consisting of at least 13 vehicular parking spaces, inclusive of at least one handicapped parking space, situated at the terminus of the Parkland Entry Road. o Bluffview Trail - includes an eight -foot (8') wide concrete trail with potentially up to two low water crossings to be constructed by the Owner commencing at the Trailhead Parking Lot, crossing through the Parkland, and connecting to the San Gabriel Regional Trail Extension. • Water Water improvements include tie to existing 16" water line, trench safety, pressure reducing valve with box, water lines, gate valves, fire hydrants, valve casting adjustments, cast iron fittings, services, irrigation sleeves, air release valves, and automatic flush valve. ■ Wastewater Wastewater improvements includes an 18" wastewater line (shown as Wastewater Trunk Line in cost estimates) that will not only serve this project but future development to the west of Southwest Bypass. Other wastewater improvements include, 8" and 10" wastewater lines, trench safety, manholes, extra depth, raise manhole castings, bore with encasement, connect to existing line, and services. ■ Drainage The drainage includes storm sewer, trench safety, manholes, junction boxes, curb inlets, grate inlets, berms, berm/swale, channel, and headwall. The water quality/detention ponds are excluded from Public Improvements. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 11 ■ Permanent Restoration Permanent Restoration include hydro -mulch seeding and reinforced matting. • Temporary Erosion Controls Temporary Erosion Controls include stabilized construction entrance, silt fence rock bern and curb inlet protection. ■ Landscaping Includes rock wall, rock columns, entry monument and landscaping (trees/scrubs/sod/plantings), irrigation, electrical for irrigation, and landscape and landscape/monument lighting. Landscaping Improvements includes the Bluffview Natural Area (BNA) Enhancements which includes the following: "BNA Enhancements" shall mean all of the following: a. five foot (5') wide ADA-compliant concrete sidewalk looping the perimeter of the Bluffview Natural Area and connecting to the existing sidewalk in River Down Road and to the street constructed by the Owner along the east side of the District; b. three park benches; c. four parallel parking spaces on the street to be constructed by the Owner along the west side of the District adjacent to the Bluffview Natural Area, together with signage in a form and location approved by the City' Representative stating that the parking places are reserved for visitors to the Bluffview Natural Area; and d. a wrought iron or rod fence. • Soft Costs Includes 15% contingency, 12% engineering and surveying and 4% project management. B. Improvement Area #1 Improvements • Street and Parkland Improvements include clearing and grubbing, excavation/embankment, subgrade preparation, flexible base, Hot Mix Asphalt Concrete, curb and gutter, traffic control, streetlights, concrete sidewalk/path/trail, sidewalk ramps, street marking and signs, saw cut and tie to existing pavement, and tree protection. • Water Water improvements include tie to existing water line, trench safety, water lines, gate valves, fire hydrants, valve casting adjustments, cast iron fittings, services, and automatic flush valve. Water line to serve the commercial tracts have been excluded from the PID Improvements. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 12 ■ Wastewater Wastewater improvements include wastewater lines, trench safety, manholes, extra depth, raise manhole castings, bore with encasement, connection to existing line and services. ■ Drainage The drainage includes storm sewer, trench safety, manholes, junction boxes, curb inlets, grate inlets, berms, berm/swale, channel, and headwall. The water quality/detention ponds are excluded from PID Improvements, per City of Georgetown's request. ■ Permanent Restoration Permanent Restoration includes hydro -mulch seeding reinforced matting. ■ Temporary Erosion Controls Temporary Erosion Controls include stabilized construction entrance, silt fence rock berm and curb inlet protection. ■ Soft Costs Includes 15% contingency, 12% engineering and surveying and 4% project management assumptions. C. District Formation Expenses Costs incurred creating the District, including attorney fees, consultant fees, and other fees and expenses related to formation of the District and the levy of Assessments. D. Bond Issuance Costs ■ Debt Service Reserve Requirement Equals the amount required to fund a reserve under the Indenture in connection with the issuance of PID Bonds, if issued. This amount may be updated or revised at the time of issuance if PID Bonds are issued. ■ Capitalized Interest Equals the amount of capitalized interest available for payment of interest on PID Bonds, if issued, as reflected in the Indenture. This amount may be updated or revised at the time of issuance if PID Bonds are issued. ■ Underwriter's Discount Equals a percentage of the par amount of a particular series of PID Bonds, if issued, and includes a fee for underwriter's counsel. This amount may be updated or revised at the time of issuance if PID Bonds are issued. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 13 ■ Cost of Issuance Costs associated with issuing PID Bonds, if issued, including but not limited to attorney fees, financial advisory fees, consultant fees, appraisal fees, printing costs, publication costs, City costs, fees charged by the Texas Attorney General, and any other cost or expense directly associated with the issuance of PID Bonds. This amount may be updated or revised at the time of issuance if PID Bonds are issued. E. First Year Annual Collection Costs Estimated cost of the 15t year Annual Collection Costs. SECTION IV: SERVICE PLAN The PID Act requires the Service Plan to cover a period of at least five years. The Service Plan is required to define the projected costs and annual indebtedness for the Authorized Improvements undertaken within the District during the five-year period. The Service Plan shall be updated in each Annual Service Plan Update. Exhibit D summarizes the Service Plan for the District. PID Bonds may be issued by the City during the five-year period to pay all or a portion of the Improvement Area #1 Reimbursement Obligation owed under the Improvement Area #1 Reimbursement Agreement. If and when PID Bonds are issued, the PID Bonds will fund costs of issuance of the PID Bonds and other costs set forth in Section III above. Assessments may be collected in an amount sufficient to pay principal, interest, and Additional Interest on the PID Bonds, costs of issuance of the PID Bonds, and to fund the Debt Service Reserve Requirement, as defined in the applicable Indenture. Exhibit E summarizes the sources and uses of funds required to construct certain Authorized Improvements. If PID Bonds are issued, Exhibit E will be updated to show the amount required to fund the required reserves and issue the PID Bonds at the time the PID Bonds are issued. The sources and uses of funds shown on Exhibit E shall be updated in each Annual Service Plan Update. SECTION V: ASSESSMENT PLAN The PID Act requires the City to apportion the Actual Costs of the Authorized Improvements to the Assessed Property based on the special benefit received from the Authorized Improvements. The PID Act provides that such costs may be apportioned: (1) equally per front foot or square foot; (2) according to the value of property as determined by the City, with or without regard to improvements constructed on the property; or (3) in any other manner approved by the City that results in imposing equal shares of such costs on property similarly benefited. The PID Act further provides that the governing body may establish by ordinance or order reasonable classifications BLUFFVIEw PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 14 and formulas for the apportionment of the cost between the municipality and the area to be assessed and the methods of assessing the special benefits for various classes of improvements. This section of this Service and Assessment Plan describes the special benefit received by each Assessed Property within the District as a result of the Authorized Improvements and provides the basis and justification for the determination that this special benefit exceeds the amount of the Assessments levied on the Assessed Property for such Authorized Improvements. The determination by the City of the assessment methodologies set forth below is the result of the discretionary exercise by the City Council of its legislative authority and governmental powers and is conclusive and binding on the Owner and all future owners and developers of the Assessed Property. A. Assessment Methodology The City Council, acting in its legislative capacity based on information provided by the Owner and its engineer and reviewed by the City staff and by third -party consultants retained by the City, has determined that the costs of the Authorized Improvements shall be allocated as follows: ■ Major Improvements shall be allocated pro rata between the Improvement Area #1 Assessed Property and Improvement Area #2 based on Estimated Buildout Value, as shown on Exhibit C. • The Improvement Area #1 Improvements are allocated entirely to the Improvement Area #1 Assessed Property. • Bond Issuance Costs and First Year Annual Collection Costs shall be allocated entirely to the Assessed Property securing the applicable series of PID Bonds. When, and if, Improvement Area #2 is developed and the issuance of Improvement Area #2 Bonds are contemplated, this Service and Assessment Plan will be amended to determine the assessment methodology necessary to apply equal shares of Actual Costs of Improvement Area #2 Improvements on Assessed Property similarly benefited within that Improvement Area #2. B. Assessments Improvement Area #1 Assessments will be levied on the Improvement Area #1 Assessed Property as shown on the Improvement Area #1 Assessment Roll, attached hereto as Exhibit F. The projected Improvement Area #1 Annual Installments are shown on Exhibit G, subject to revisions made during any Annual Service Plan Update. The Maximum Assessment for each Lot Type is shown on Exhibit H. In no case will the Assessment for any Lot Type exceed the Maximum Assessment. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 15 When, and if, Improvement Area #2 is developed and the levy of Assessments on Improvement Area #2 is contemplated, this Service and Assessment Plan will be amended to determine the Assessment and Annual Installment associated with the costs of Improvement Area #2 Improvements on each Lot located within Improvement Area #2. The Assessment shall not exceed the benefit received by the Assessed Property. Prior to the Trigger Date for the collection of Annual Installments for a given Improvement Area #2 Parcel, the Annual Collection Costs shall be billed and collected in the same manner as Annual Installments in the amounts set forth in each Annual Service Plan Update. Following the Trigger Date for the collection of Annual Installments, the Annual Collection Costs shall be collected as part of and in the same manner as Annual Installments in the amounts shown on the Assessment Roll, which may be revised based on actual costs incurred in Annual Service Plan Updates. C. Findings of Special Benefit The City Council, acting in its legislative capacity based on information provided by the Owner and its engineer and reviewed by the City staff and by third -party consultants retained by the City, has found and determined: • The cost of Improvement Area #1 Projects and the applicable First Year Annual Collections costs and Bond Issuance Costs equals $7,206,217 as shown on Exhibit E; and • The Improvement Area #1 Assessed Property receives special benefit from Improvement Area #1 Projects and applicable share of First Year Annual Collections Costs and Bond Issuance Costs equal to or greater than the Actual Costs of the Improvement Area #1 Projects and applicable share of First Year Annual Collections Costs and Bond Issuance Costs; and • Improvement Area #1 Assessed Property will be allocated 100% of the Improvement Area #1 Assessments levied on the Improvement Area #1 Assessed Property for Improvement Area #1 Projects and the applicable First Year Annual Collection Costs and Bond Issuance Costs, which equal $4,225,000, as shown on the Improvement Area #1 Assessment Roll attached hereto as Exhibit F; and ■ The special benefit (>_ $7,206,217) received by the Improvement Area #1 Assessed Property from the Improvement Area #1 Projects and applicable First Year Annual Collection Costs and Bond Issuance Costs is greater than the amount of Assessments ($4,225,000) levied on the Improvement Area #1 Assessed Property for the Authorized Improvements; and ■ At the time the City Council approved the Assessment Ordinance, the Owner owned 100% of Improvement Area #1. In a Landowner Agreement with the City, the Owner acknowledged that the Improvement Area #1 Projects and applicable First Year Annual Collections Costs and Bond Issuance Costs confer a special benefit on BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 16 Improvement Area #1 Assessed Property and consented to the imposition of the Assessments to pay for the Actual Costs associated therewith. The Owner ratified, confirmed, accepted, agreed to, and approved (1) the determinations and findings by the City Council as to the special benefits described herein and in the Assessment Ordinance, (2) the Service and Assessment Plan and the Assessment Ordinance, and (3) the levying of the Assessments on the Improvement Area #1 Assessed Property. D. Annual Collection Costs The Annual Collection Costs shall be paid for on a pro rata basis by each Assessed Property based on the amount of outstanding Assessment remaining on the Assessed Property. Prior to the Trigger Date for the collection of Annual Installments for a given Parcel, the Annual Collection Costs shall be billed and collected in the same manner as Annual Installments in the amounts set forth in each Annual Service Plan Update. Following the Trigger Date for the collection of Annual Installments, the Annual Collection Costs shall be collected as part of and in the same manner as Annual Installments in the amounts shown on the Assessment Roll, which may be revised based on actual costs incurred in Annual Service Plan Updates. E. Additional Interest Additional Interest will not be collected as part of the Improvement Area #1 Reimbursement Obligation. If PID Bonds are issued, the interest rate on Assessments levied on the Assessed Property may exceed the interest rate on the PID Bonds by the Additional Interest Rate. If and when PID Bonds are issued, Additional Interest shall be collected as part of each Annual Installment and shall be deposited pursuant to the applicable Indenture. SECTION VI: TERMS OF THE ASSESSMENTS A. Reallocation of Assessments 1. Upon Division Prior to Recording of Subdivision Plat Upon the division of any Assessed Property (without the recording of subdivision plat), the Administrator shall reallocate the Assessment for the Assessed Property prior to the division among the newly divided Assessed Properties according to the following formula: A=Bx(C=D) Where the terms have the following meanings: A = the Assessment for the newly divided Assessed Property BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN i7 B = the Assessment for the Assessed Property prior to division C = the Estimated Buildout Value of the newly divided Assessed Property D = the sum of the Estimated Buildout Value for all the newly divided Assessed Properties The sum of the Assessments for all newly divided Assessed Properties shall equal the Assessment for the Assessed Property prior to subdivision. The calculation shall be made separately for each newly divided Assessed Property. The reallocation of an Assessment for an Assessed Property that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in the next Annual Service Plan Update and approved by the City Council. 2. Upon Subdivision by a Recorded Subdivision Plat Upon the subdivision of any Assessed Property based on a recorded subdivision plat, the Administrator shall reallocate the Assessment for the Assessed Property prior to the subdivision among the new subdivided Lots based on Estimated Buildout Value according to the following formula: A = [B x (C _ D)]/E Where the terms have the following meanings: A = the Assessment for the newly subdivided Lot B = the Assessment for the Parcel prior to subdivision C = the sum of the Estimated Buildout Value of all newly subdivided Lots with the same Lot Type D = the sum of the Estimated Buildout Value for all the newly subdivided Lots excluding Non -Benefited Property E= the number of Lots with the same Lot Type Prior to the recording of a subdivision plat, the Owner shall provide the City an Estimated Buildout Value as of the date of the recorded subdivision plat for each Lot created by the recorded subdivision plat. The sum of the Assessments for all newly subdivided Lots shall not exceed the Assessment for the portion of the Assessed Property subdivided prior to subdivision. The calculation shall be made separately for each newly subdivided Assessed Property. The reallocation of an Assessment for an Assessed Property that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in the next Annual Service Plan Update and approved by the City Council. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 18 3. Upon Consolidation If two or more Lots or Parcels are consolidated, the Administrator shall allocate the Assessments against the Lots or Parcels before the consolidation to the consolidated Lot or Parcel, which allocation shall be approved by the City Council in the next Annual Service Plan Update. The Assessment for any resulting Lot will not exceed the Maximum Assessment, shown on Exhibit H for the applicable Lot Type, and compliance may require a mandatory prepayment of Assessments pursuant to Section VI.B. B. True -up of Assessments if Maximum Assessment Exceeded Prior to the City approving a final subdivision plat, the Administrator will certify that such plat will not result in the Assessment per Lot for any Lot Type to exceed the Maximum Assessment. If the Administrator determines that the resulting Assessment per Lot for any Lot Type will exceed the Maximum Assessment, then (i) the Assessment applicable to each Lot Type exceeding the Maximum Assessment shall be reduced to the Maximum Assessment, and (ii) the person or entity filing the plat shall pay to the City the amount the Assessment was reduced, plus Prepayment Costs and Delinquent Collection Costs, prior to the City approving the final plat. The City's approval of a final subdivision plat without payment of such amounts does not eliminate the obligation of the person or entity filing the plat to pay the amounts referenced in (ii) in the immediately preceding sentence. C. Mandatory Prepayment of Assessments If Assessed Property is transferred to a person or entity that is exempt from payment of the Assessments, the owner transferring the Assessed Property shall pay to the City or the Administrator on behalf of the City the full amount of the outstanding Assessment, plus Prepayment Costs and Delinquent Collection Costs, if any, for such Assessed Property, prior to the transfer. If the owner of the Assessed Property causes the Assessed Property to become Non -Benefited Property, the owner causing the change in status shall pay the full amount of the outstanding Assessment, plus Prepayment Costs and Delinquent Collection Costs, if any, prior to the change in status. D. Reduction of Assessments If as a result of cost savings or Authorized Improvements not being constructed, the Actual Costs of completed Authorized Improvements are less than the Assessments, (i) in the event PID Bonds are not issued, the City Council shall reduce each Assessment on a pro-rata basis such that the sum of the resulting reduced Assessments for all Assessed Property equals the reduced Actual Costs, or (ii) in the event PID Bonds are issued, the Trustee shall apply amounts on deposit in the applicable account of the project fund, relating to the PID Bonds, that are not expected to be BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 19 used for purposes of the project fund to redeem outstanding PID Bonds, in accordance with the applicable Indenture. The Assessments shall not, however, be reduced to an amount less than the outstanding PID Bonds. The Administrator shall update (and submit to the City Council for review and approval as part of the next Annual Service Plan Update) the Assessment Roll and corresponding Annual Installments to reflect the reduced Assessments. E. Prepayment of Assessments The owner of any Assessed Property may pay, at any time, all or any part of an Assessment in accordance with the PID Act. If PID Bonds are issued, interest costs from the date of prepayment to the date of redemption of the applicable PID Bonds, if any, may be paid from a reserve established under the applicable Indenture. If an Annual Installment has been billed prior to the Prepayment, the Annual Installment shall be due and payable and shall be credited against the Prepayment. If an Assessment is pre -paid in full, with Prepayment Costs: (1) the Administrator shall cause the Assessment to be reduced to zero and the Assessment Roll to be revised accordingly; (2) the Administrator shall cause the revised Assessment Roll to be approved by the City Council as part of the next Annual Service Plan Update; (3) the obligation to pay the Assessment and corresponding Annual Installments shall terminate; and (4) the City shall provide the owner with a recordable "Notice of PID Assessment Termination," a form of which is attached as Exhibit K. If an Assessment is pre -paid in part, with Prepayment Costs: (1) the Administrator shall cause the Assessment to be reduced and the Assessment Roll revised accordingly; (2) the Administrator shall cause the revised Assessment Roll to be approved by the City Council as part of the next Annual Service Plan Update; and (3) the obligation to pay the Assessment and corresponding Annual Installments shall be reduced to the extent of the Prepayment made. F. Prepayment as a result of Eminent Domain Proceeding or Taking Subject to applicable law, if any portion of any Parcel of Assessed Property is taken from an owner as a result of eminent domain proceedings or if a transfer of any portion of any Parcel of Assessed Property is made to an entity with the authority to condemn all or a portion of the Assessed Property in lieu of or as a part of an eminent domain proceeding (a "Taking"), the portion of the Assessed Property that was taken or transferred (the "Taken Property") shall be reclassified as Non -Benefited Property. For the Assessed Property that is subject to the Taking as described in the preceding paragraph, the Assessment that was levied against the Assessed Property (when it was included in the Taken Property) prior to the Taking shall remain in force against the remaining Assessed Property (the Assessed Property less the Taken Property,) (the "Remaining Property"), following the BLUFFVIEw PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 20 reclassification of the Taken Property as Non -Benefited Property, subject to an adjustment of the Assessment applicable to the Remaining Property after any required Prepayment as set forth below. The owner of the Remaining Property will remain liable to pay in Annual Installments, or payable as otherwise provided by this Service and Assessment Plan, as updated, or the PID Act, the Assessment that remains due on the Remaining Property, subject to an adjustment in the Assessment applicable to the Remaining Property after any required Prepayment as set forth below. Notwithstanding the foregoing, if the Assessment that remains due on the Remaining Property exceeds the Maximum Assessment, the owner of the Remaining Property will be required to make a Prepayment in an amount necessary to ensure that the Assessment against the Remaining Property does not exceed the Maximum Assessment, in which case the Assessment applicable to the Remaining Property will be reduced by the amount of the partial Prepayment. If the City receives all or a portion of the eminent domain proceeds (or payment made in an agreed sale in lieu of condemnation), such amount shall be credited against the amount of prepayment, with any remainder credited against the assessment on the Remainder Property. In all instances the Assessment remaining on the Remaining Property shall not exceed the Maximum Assessment. By way of illustration, if an owner owns 100 acres of Assessed Property subject to a $100 Assessment and 10 acres is taken through a Taking, the 10 acres of Taken Property shall be reclassified as Non -Benefited Property and the remaining 90 acres of Remaining Property shall be subject to the $100 Assessment, (provided that this $100 Assessment does not exceed the Maximum Assessment on the Remaining Property). If the Administrator determines that the $100 Assessment reallocated to the Remaining Property would exceed the Maximum Assessment on the Remaining Property by $10, then the owner shall be required to pay $10 as a Prepayment of the Assessment against the Remaining Property and the Assessment on the Remaining Property shall be adjusted to be $90. Notwithstanding the previous paragraphs in this subsection (F), if the owner of the Taken Property notifies the City and the Administrator that the Taking prevents the Remaining Property from being developed for any use which could support the Estimated Buildout Value requirement, the owner shall, upon receipt of the compensation for the Taken Property, be required to prepay the amount of the Assessment required to buy down the outstanding Assessment to the Maximum Assessment on the Remaining Property to support the Estimated Buildout Value requirement. Said owner will remain liable to pay the Annual Installments on both the Taken Property and the Remaining Property until such time that such Assessment has been prepaid in full. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 21 Notwithstanding the previous paragraphs in this subsection (F), the Assessments shall not, however, be reduced to an amount less than the outstanding PID Bonds, if issued. G. Payment of Assessment in Annual Installments Assessments that are not paid in Lull shall be due and payable in Annual Installments. In no case will the Assessment for any Lot Type exceed the Maximum Assessment. Annual Installments are subject to adjustment in each Annual Service Plan Update. The Administrator shall prepare and submit to the City Council for its review and approval an Annual Service Plan Update to allow for the billing and collection of Annual Installments. Each Annual Service Plan Update shall include updated Assessment Rolls and updated calculations of Annual Installments. Annual Collection Costs shall be allocated pro rata among Assessed Properties for which the Assessments remain unpaid in proportion to the amount of the Annual Installments for the Assessed Property. Annual Installments shall be collected by the City in the same manner and at the same time as ad valorem taxes. Annual Installments shall be subject to the penalties, procedures, and foreclosure sale in case of delinquencies as set forth in the PID Act and in the same manner as ad valorem taxes for the City. The City Council may provide for other means of collecting Annual Installments. Assessments shall have the lien priority specified in the PID Act. For billing purposes only, until a plat has been recorded within the District, the Annual Installment will be billed to each property ID within the District based on the Williamson Central Appraisal District acreage. Sales of the Assessed Property for nonpayment of Annual Installments shall be subject to the lien for the remaining unpaid Annual Installments against the Assessed Property, and the Assessed Property may again be sold at a judicial foreclosure sale if the purchaser fails to timely pay the Annual Installments as they become due and payable. The City reserves the right to refund PID Bonds, if issued, in accordance with the PID Act, if such bonds are issued. In the event of a refunding, the Administrator shall recalculate the Annual Installments so that total Annual Installments will be sufficient to pay the refunding bonds, and the refunding bonds shall constitute "PID Bonds." Each Annual Installment of an Assessment, including interest on the unpaid principal of the Assessment, shall be updated annually. Each Annual Installment shall be due when billed and shall be delinquent if not paid prior to February 1 of the following year. Failure of an owner of Assessed Property to receive an invoice for an Annual Installment on the property tax bill or otherwise shall not relieve the owner of Assessed Property of the obligation to pay the Assessment. Assessments, or Annual Installments thereof, that are delinquent shall incur Delinquent Collection Costs. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 22 SECTION VII: ASSESSMENT ROLL The Assessment Roll is attached as Exhibit F. The Administrator shall prepare and submit to the City Council for review and approval, proposed revisions to the Assessment Roll and Annual Installments for each Parcel within the Assessed Property as part of each Annual Service Plan Update. SECTION Vill: ADDITIONAL PROVISIONS A. Calculation Errors If the owner of an Assessed Property claims that an error has been made in any calculation required by this Service and Assessment Plan, including, but not limited to, any calculation made as part of any Annual Service Plan Update, the sole and exclusive remedy of the owner of Assessed Property shall be to submit a written notice of error to the Administrator by December 11t of each year following City Council approval of the calculation; otherwise, the owner shall be deemed to have unconditionally approved and accepted the calculation. Upon receipt of a written notice of error from an owner the Administrator shall provide a written response to the City Council and the owner within 30 days of such referral. The City Council shall consider the owner's notice of error and the Administrator's response at a public meeting, and within 30 days after adjourning such meeting, the City Council shall make a final determination as to whether an error has been made. If the City Council determines that an error has been made, the City Council shall take such corrective action as is authorized by the PID Act, this Service and Assessment Plan, the applicable Assessment Ordinance, or the applicable Indenture, or is otherwise authorized by the discretionary power of the City Council. The determination by the City Council as to whether an error has been made, and any corrective action taken by the City Council, shall be final and binding on the owner and the Administrator. B. Amendments Amendments to this Service and Assessment Plan must be made by the City Council in accordance with the PID Act. To the extent permitted by the PID Act, this Service and Assessment Plan may be amended without notice to owners of the Assessed Property: (1) to correct mistakes and clerical errors; (2) to clarify ambiguities; and (3) to provide procedures to collect Assessments, Annual Installments, and other charges imposed by this Service and Assessment Plan. C. Administration and Interpretation The Administrator shall: (1) perform the obligations of the Administrator as set forth in this Service and Assessment Plan; (2) administer the District for and on behalf of and at the direction BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 23 of the City Council; and (3) interpret the provisions of this Service and Assessment Plan. Interpretations of this Service and Assessment Plan by the Administrator shall be in writing and shall be appealable to the City Council by owners of Assessed Property adversely affected by the interpretation. Appeals shall be decided by the City Council after providing an opportunity for all interested parties to be heard at a public meeting of the City Council. Decisions by the City Council shall be final and binding on the owners and developers and their successors and assigns. D. Severability If any provision of this Service and Assessment Plan is determined by a governmental agency or court to be unenforceable, the unenforceable provision shall be deleted and, to the maximum extent possible, shall be rewritten to be enforceable. Every effort shall be made to enforce the remaining provisions. E. Form of Buyer Disclosure Per Section 5.014 of the Texas Property Code, as amended, this Service and Assessment Plan, and any future Annual Service Plan Updates, shall include a form of the buyer disclosures for the District. The buyer disclosures are attached hereto as Exhibit L-1, Exhibit L-2 and Exhibit L-3. Within seven days of approval by the City Council, the City shall file and record in the real property records of the County the executed ordinance approving this Service and Assessment Plan, or any future Annual Service Plan Updates. The executed ordinance, including any attachments, approving this Service and Assessment Plan or any future Annual Service Plan Updates shall be filed and recorded in its entirety. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 24 LIST OF EXHIBITS Exhibit A-1 District Legal Description Exhibit A-2 Improvement Area #1 Legal Description Exhibit B District Boundary Map Exhibit C Authorized Improvements Exhibit D Service Plan — Five Year Plan Exhibit E Service Plan —Sources and Uses Exhibit F Assessment Roll Exhibit G Annual Installments Exhibit H Maximum Assessment per Lot Type Exhibit I Map of Authorized Improvements Exhibit J Lot Type Classification Map Exhibit K Notice of PID Assessment Termination Exhibit L-1 Lot Type 1— Buyer Disclosure Exhibit L-2 Lot Type 2 — Buyer Disclosure Exhibit L-3 Lot Type 3 — Buyer Disclosure BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 25 EXHIBIT A-1— DISTRICT LEGAL DESCRIPTION kULD NOTES ,0WACRE 'I'16tACT ALL THAT CERTAIN .PARCEL OR TRACT OF LAND OUT OF TYE JOSEPH 'ffTOMPSOd SURVEY, ABSTRACT _ N0. 608, WILLIAMSON COUNTY, TEXAS,- BF..INO A PORTION OF THOSE TRACTS OF LAND AS CON'VEM TO A.C. WEIR PROPERTIES, LTD. BY 8PECI.441 WARRANTY DEED RECORDED TN DOCLUENT NO. 2005090431 OF THE ()MC°IAL 2,UBLIC RECORDS OF WIL%IA14SON COUNTY, ' 1XAS, AND B-JNG MORE PARTICULARLY DESCRIBED 13Y Nffi-M AND BOUNDS AS FOLLOWS. COMMENCING for POINT OF REFERENCE at a W iron rod fond on the tx vrest night -of way line of F,M. Highway 2243 at the snutlewest cornier of the Resubciivisiun of Riverview Estates, a subdivision as recorded in C"et K, Slides 51-53 of the Plat Records of Widi=soa County, Texas, said irm tod found also being on the east line of the above des nbed A.C. Weir Properties, Ltd. Traci; Thence, With the nudhwcst right -of -Way line of F M. Highway 2243, S18106 WE a disWwc of 20,48 ,feet to a h� iron rod set with cap stamped TERRA FURLM i at the southeast comer of said A.C. Weir Properties, Ltd. Treat, and S59034a3211W a distance of 314.07 feelt to a 14" iron rod set with cap stamped TERRA FiRNIA for the most southerly southeast corner and Powr OF BEOTNNING of the herein described triad, TEMNCE, Wntinuing with the northwest right-of-way line of F.M, H.igftaray 2243, S59034'2"W a distme of 115.32 fcd to a lob' iron rod tot with cap staupod TERRA FLKMA far the moat southerly comer of this tact; THENCE, along a curve to the left an aarc distt = of 37.42 feet, having a rudius of 25.00 feet, and a chord which brags N16142102'E a distance of 34.02 feet to a W1 iron rod sit with cap stamped TERRA FIRMA at a point of tangency; SCE N26'1(Y27"W a distm-we of 253.55 feet to a %" iron rod set with cep stamped TERRA FIRMA for an .inside oorncr of this tract; T ENCE S63a4933"W a distawe of 170.91 feet to a W' irm rod let with clop staffed TERRA MMA at an angle point; BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 26 '111h,NCk3 559°19'55"'W a distance of 261.37 feet to a'Ia'" iron coal set taxnped with cV 9 TERRA FIRMA on the proposed east right-of-way line of he proposed State Highway No. 29 Bypass, from which a %" iron rod found with cap stumped "Diamond" bears S30°40'05"E a distanm of 257.86 feet; ONCE, with the proposed east right- way line of said proposed State Idighwvay Nn- 29 Bypass, the foL'owing foul (4) writs 1) N30040'05"W a distance of 406,16 feet to a %" ixon rod found with cap stamped `Diamond" at an angle point, 2) NW54'41'rW a distartae 9f 694.43 feat to a W' iron rod found with carp stamped "Diamond" at an angle point; 3) N40022'42"W a distance of 629.23 feet to a 'W iron rod found with cap stanPed "Diamond" at a. point of curvature of a clove to the right; and 4) Along said cure to tht right an arc distance of 168_91 ftxt, having a radius of 6870.00 feet, and a chord winch beats N24°52'26" W a distance of 368.87 feet to a '1a" iron rod get with cap stamped TERRA FIR14 A for the most westerly corner of this tract; TH EN4CE N2602569"E a distance of 1,134.86 feet to a YT iron rod set with cap starnped 'fE`I1vRA p'UUMA at an angle point:; T 1IENCE N01027'4VE paw a'A" iron rod set for reference with cap starnped TERRA FHUAA at; 826.03 ftwt, axtd contintung on for a total distance of 911.03 feet to a point at the approximate cenOufine of the SoA Sara Gabriel River for the northwest comes of this trxt *moiCE, with the approximate centcrlint of the Smith San Gabrcl River, N75°35'38"E a distance of 127.94 feet to a paint for the anordwast career Of this track THENCF, with the west lime of said Resnbdivision of Riverview Estates, the follorering twenty -flour (24) courses- 1) SI8°48'46"E, pass a %z'' iron rud foamd at a distance of 65.65 feet, and continuing on for a total distance of 90,35 fret tea a lrz" iron rod found at an angle point; 2) UV3437"E, pass a '/z" iron rod found at a distance of 71.61 feet, and ccmtauui.V on for a total distance of 493.07 feet to a %" iron rod found at an angle point; 3) S1993'44"U, a distance of 325.99 feet W a''A" iron rod gst with trap star npe d TERRA FalvtA at an angle point; 4) S14140'14' I; a distance of 77.23 feet to a 'ri" iron rod found at the most Westerly southwest corner of Lot 8, Block `6' of said Rcsubdivision of Rivervicnv Fstates for an interior corner of this trust; BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 27 5) N72''02'33" B a distance of 28.27 feet to a V3" iron rod set with coop startz* 'fERFA, FIRMA at an interior comer of said Lot 8, Block. V for are extezl4r cos for of this tract; 6) S30°3057"E a distance of 4631 feet to a %" iron rod sct with cap stamped TERRA rIFIV4A at an aerie point; 7) 32V59'57'E a distance of 70.29 feet to a 60D nail found on dw north fight -of- ay foot of River Down Road; 9) S19115'27"E a dismace of 49.97 feet to a'A" iron rod set on the south right-of-way line of River Down Road; 9) S20°23'07"B a distance of 161.74 feet to it Y:" ixon rod found at an angk point; 10) S l SV48'07" E a distance of 150.06 feet to a W iron nod foenad at an w1gle point; 11) S20°04' 17"E a distance of 127.72- feet to a W iron rod found at an angle paniti 12) S 19"01'36"E a distame, of 44,65 feet to et Yz" imn rocs rot at au ogle point; 13) S1+3°20'25"B a distance of 149.00 feet to a °A' ison rod found at an art& point; 14) S20111'22"E a distance of 150.99 feet to a Mi„ iron zvd set with cap stamped TERRA F7RMA at an angle point; 13) S2V23'2'1"E a distance of 151.07 feet to a %" iron rod found at an an& polm; 16) S21'59008"l a distance of 123.93 feet to a Ya" iron rod found at an angle point; 17) S21154124'E a distance of 133.89 feet to a Y" iron rod found on the north right-of-way lim of Sent free Drive; 18) S2 D'l"341f- a distame of 50.02 feet to a Ys' iron rod found on the south right-of-way line of Bent Tree Drive, 19) S21 "48'52"B a distance of 180.94 feet to a W" iron rod fecund at an ale point; 20) S2103 l'441% a distance of229.94 feet to a h" iron rod found at an angle point; 21) 82110YOT 1 a. distm= of 78.31 fcet to a V5" iron rod foamed at ma angle pojxa� 22) S 18'3047"E a distamv of 8.80 feet to a W' zr wd found at an angle point; 23) S19°5233"E. a diistwwo of 95.88 feet to a'/a" iron rend found at an ale point; and v - . - - _-_x BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 28 24) S 1 PSTOS" E a dL%Atux of 100." fftt W a /," icon rod set Wilk cap stamped I l ttx.4 FIRMA for an outside r:am r of the tract, from which a 'W ima rod found hears S 18452'1l� a dlstanGa of 60.0+4 THENCE S51YO5'WW a dswae Of 3117.75 rket to a K" Ltoa turd ad With 99P clamped 33;RRA FIRMA for so inside eorawr of t16 tract, TA54CE s15,45,55,E a 4aOaacc of JZ7,26 Feet to a `A" iran fad set math clap AMPW T8RRA FIR144A at a poW of cuMtcuc O(A =K to dw loft: THENCE along said wrve to the 1rs8 an ate Al mvo of 4M flaet, having a radius of 267,50 Eout, and a diord which hems S20'58'I 113 a dislawc of 4U3 %l to a K" iron tad set with cap sh mped TERRA F11t1t11A at a paint of tenzenCY: THENCE 336110,27,E a distance of 3UJ5 fmt to a 'W' irim rod sat with COP 31=Ped TERRA FIRMA at a point of eta emc of n cut" m dte THENCE along said curve to the left an are distance of 41.12 feet: having a radius of 25.00 &M and a chord which bean S73°I1158"E a distance of 3664 fret to the POINT OF BEQNNWU. and containing 68.080 acres of Lmd, mere or less. 1 HEREBY CERTIFY that theme noiea were PmPft-cd by Term Firma Land Sury ying from a survey nmdo on the ground on hnua y 24, 2013 under my supervision and are arue and corm d m the bast of my lrnowledga. Refinnoe Tetra Flams '+:n•ay. Project No. A497.001-01. •I r E�.si L onatitan O. Nobles Datc Registered Prof ssinnal Land SurvcyorNo, 5777 Client, Capiuli City Fatt"m mare- Matra 6, 2913 WO No-, 0A497-001-01MG1 FB-- mc2 639119 Fibs~ J:1Frojc 497-.-WI-01...0-090AC FNAac BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 29 EXHIBIT A-2 - IMPROVEMENT AREA #1 LEGAL DESCRIPTION [LEGAL DESCRIPTIONS WILL BE COMPLETED IN THE SUBDIVISION CONTRUCTION PLAN PROCESS AND ATTACHED TO THE SAP PRIOR TO SAP APPROVAL] BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 30 EXHIBIT A-3 - IMPROVEMENT AREA #2 LEGAL DESCRIPTION [LEGAL DESCRIPTIONS WILL BE COMPLETED IN THE SUBDIVISION CONTRUCTION PLAN PROCESS AND ATTACHED TO THE SAP PRIOR TO SAP APPROVAL] BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 31 EXHIBIT B - DISTRICT BOUNDARY MAP 2000 1000 10 20 00 —4uQ IN Ir-LL; I L TT U BLUFFVIEW LJA Engineering, Inc. 1A &-AIN 11 PtoW51'243):" APPENDIX A SL49 100 Fw. 517 439, P5 yes jll reams WJ5 RN F-13Ha I OF 1 N LOCATION MAP BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 32 EXHIBIT C — AUTHORIZED IMPROVEMENTS Total .. MW .. Major Improvements Street and Parkland $ 1,864,110 48.40% $ 902,200 51.60% $ 961,909 Water 372,048 48.40% 180,065 51.60% 191,983 Wastewater 770,285 48.40% 372,806 51.60% 397,479 Drainage 430,935 48.40% 208,566 51.60% 222,369 Permanent Restoration 123,950 48.40% 59,990 51.60% 63,960 Erosion Control 61,185 48.40% 29,613 51.60% 31,572 Landscape 936,000 48.40% 453,010 51.60% 482,990 Soft Costs [a] 1.113,139 48.40% 683,937 51.60% 729,201 $ 5,971,651 $ 2,890,187 $ 3,081,464 Improvement Area #1 Improvements Street and Parkland $ 1,010,445 100.00% $ 1,010,445 0.00% $ Water 396,300 100.00% 396,300 0.00% - Wastewater 509,145 100.00% 509,145 0.00% Drainage 730,021 100.00% 730,021 0.00% Permanent Restoration 44,750 100.00% 44,750 0.00% Erosion Control 28,790 100.00% 28,790 0.00% Soft Costs [a] 843,030 100.00% 843,030 0.00% $ 3,562,480 $ 3,562,480 $ Bond Issuance Costs Debt Service Reserve Fund $ 333,300 $ 333,300 $ Capitalized Interest - Underwriter Discount 126,750 126,750 Cost of Issuance 253,500 253,500 $ 713,550 $ 713,550 $ First Year Annual Collection Costs First year Annual Collection Costs $ 40,000 $ 40,000 $ $ 40,000 $ 40,000 $ - Total $ 10,287,682 $ 7,206,217 $ 3,081,464 Notes: a] Includes 4% Project Management, 12% engineering and surveying, and 15% contingency assumptions BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 33 0 0 0 rn O I, n -4 Lr m 00 �F M m N N m -vi qjl� lf�- V� lf� O O O 0) O - a --I N O 0) a) M m (M N qr N rn tfE [J? O O O O O N L(1 T 00 -:T N An V). ifl- 4A. tn O 00 O N V ' O1 N N C M ill� V)- 44- O t.D o r-I O w a ri N 'T m M to Do N n M 1 u: 00 a �o e-1 n M m �o 0 n m lj-� ij-�Ivi- 4A. vl� IIn- 0 0 0 0 0 O Ln Ln oc M Ln rn 00' o of I, Ln N � 10 N m rn Q)- Q� -tn I-V�- M t _ N c-I N M t a u a 3 EXHIBIT E - SERVICE PLAN - SOURCES AND USES Sources of Funds Improvement Area #1 Owner Advance [a] Improvement Area #1 Owner Contribution [b] Total Sources Uses of Funds $ $ $ 4,225,000 2,981,217 7,206,217 Major Improvements $ 2,890,187 Improvement Area #1 Improvements $ 3,562,480 $ 6,452,667 Improvement Area #1 Bond Issuance Costs Debt Service Reserve Fund [c] $ 333,300 Capitalized Interest [c] - Underwriter's Discount [c] 126,750 Cost of Issuance [c] 253,500 $ 713,550 District Formation Expenses District Formation Expenses $ - First Year Annual Collection Costs First Year Annual Collection Costs $ 40,000 $ 40,000 Total Uses $ 7,206,217 [a] Owner Advance to be repaid to the Owner pursuant to the terms of the Reimbursement Agreement. The amount shown is an estimate and subject to change if PID Bonds are issued. [b] Not subject to reimbursement to Owner. [c] The amounts shown for Bond Issuance Costs are estimates and are subject to change if PID Bonds are issued. [OWNER TO PROVIDE ESTIMATE OF DISTRICT FORMATION EXPENSES] BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 35 EXHIBIT F -ASSESSMENT ROLL Note: For billing purposes only, until a plat has been recorded within the Initial Parcel, the Annual Installment will be billed to each Tax Parcel within the Initial Parcel based on the acreage of the Tax Parcel as calculated by the Williamson Central Appraisal District. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 36 EXHIBIT G - IMPROVEMENT AREA #1 ANNUAL INSTALLMENTS I Year 1 $ 75,000.00 $ 253,500.00 $ 40,800.00 $ 369,300.00 Year 2 80,000.00 249,000.00 41,616.00 370,616.00 Year 3 85,000.00 244,200.00 42,448.32 371,648.32 Year 4 90,000.00 239,100.00 43,297.29 372,397.29 Year 5 95,000.00 233,700.00 44,163.23 372,863.23 Year 6 105,000.00 228,000.00 45,046.50 378,046.50 Year 7 110,000.00 221,700.00 45,947.43 377,647.43 Year 8 115,000.00 215,100.00 46,866.38 376,966.38 Year 9 125,000.00 208,200.00 47,803.70 381,003.70 Year 10 130,000.00 200,700.00 48,759.78 379,459.78 Year 11 140,000.00 192,900.00 49,734.97 382,634.97 Year 12 145,000.00 184,500.00 50,729.67 380,229.67 Year 13 155,000.00 175,800.00 51,744.27 382,544.27 Year 14 165,000.00 166,500.00 52,779.15 384,279.15 Year 15 175,000.00 156,600.00 53,834.73 385,434.73 Year 16 185,000.00 146,100.00 54,911.43 386,011.43 Year 17 195,000.00 135,000.00 56,009.66 386,009.66 Year 18 210,000.00 123,300.00 57,129.85 390,429.85 Year 19 220,000.00 110,700.00 58,272.45 388,972.45 Year 20 235,000.00 97,500.00 59,437.90 391,937.90 Year 21 245,000.00 83,400.00 60,626.65 389,026.65 Year 22 260,000.00 68,700.00 61,839.19 390,539.19 Year 23 280,000.00 53,100.00 63,075.97 396,175.97 Year 24 295,000.00 36,300.00 64,337.49 395,637.49 Year 25 310,000.00 18,600.00 65,624.24 394,224.24 Total $ 4,225,000.00 $ 4,042,200.00 $ 1,306,836.23 $ 9,574,036.23 [a] Interest is calculated at a 6.00% rate for illustrative purposes. [b] The Annual Installment due date for Year 1 will be determined by the Trigger Date as described in Section V.B. [c] Until the Trigger Date has been reached for a Parcel, only Annual Collection Cost will be collected. Note: The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 37 EXHIBIT H - MAXIMUM ASSESSMENT PER LOT TYPE 1 72 $ 2,635,135.14 $36,599.10 per Unit $ 0.5308 2 17 $ 746,621.62 $43,918.92 per Unit $ 0.5308 3 16 $ 843,243.24 $52,702.70 per Unit $ 0.5308 Total 105 $ 4,225,000.00 [a] City PID policy caps the estimated equivalent tax rate at $0.55 per $100 of assessed value. [b] Maximum Assessment per lot type is an estimate and subject to revision upon final plat and/or a PID Bond Issuance. BLUFFVIEW PID PRELIMINARY SERVICE AND ASSESSMENT PLAN 38 R UlildW 'U'ALNnooNommw AA31AJzlfll9 Ono it 18903 SiNWr3/Q8MI)Wd TTV'dMO IMNS - (DMN3dW YL,A.LNnoomosm rim wo LU z LLJ 2 11 LU pp II 19*4)(3 Sl7M3AOWMORWd TW"O ZiaHP-G)OCIredco ==— 1 ., —=. --. n 'fL',UN(lOONOSM im t f it �= � �� ;III' I �_ Lu ul 11) LU LLJ ti 18 '"E*4X3 Sl.NN8AOUM H3 1 YMB18M I �SIVM I -03W - 3 mm3oav -,(J.'AJ.Nnoo Nosvwnw w I P Al If N C mo*m s1N313AMId e831`Nnazsm, ZMM-34W. il Xl'.LLN OON081Wf , '-"r- 1 M31/l��fll6 1 t' � 11 t {04 e' I Iy -mmr.�:- C saxaenonawo nano Y .G JAOWdW xl'nwnOONOS�wmm�n "+ w + e - c M31AA=inl9 t ii a„ 1NUO10 ! UWZIAONdlll bllg(ld x-L'AiNnoo mosmirlmr, i. -6 Ln e EXHIBIT K - NOTICE OF PID ASSESSMENT TERMINATION 1 P3Works, LLC 9824 Huntington Square, Suite 100 North Richland Hills, TX 76182 [Date] Williamson County Clerk's Office Honorable [County Clerk Name] Williamson County Justice Center County Clerk 405 Martin Luther King, Jr. St. Georgetown, TX 78626 Re: City of Georgetown Lien Release documents for filing Dear Ms./Mr. [County Clerk Name], Enclosed is a lien release that the City of Georgetown is requesting to be filed in your office. Lien release for [insert legal description]. Recording Numbers: [Plat]. Please forward copies of the filed documents below: City of Georgetown Attn: [City Secretary] 808 Martin Luther King, Jr. St. Georgetown, TX 78626 Please contact me if you have any questions or need additional information. Sincerely, [Signature] Jon Snyder P: (817) 393-0353 admin@p3-works.com AFTER RECORDING RETURN TO: [City Secretary Name] 808 Martin Luther King, Jr. St. Georgetown, TX 78626 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENTTHAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. FULL RELEASE OF PUBLIC IMPROVEMENT DISTRICT LIEN STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF WILLIAMSON § THIS FULL RELEASE OF PUBLIC IMPROVEMENT DISTRICT LIEN (this "Full Release") is executed and delivered as of the Effective Date by the City of Georgetown, Texas. RECITALS WHEREAS, the governing body (hereinafter referred to as the "City Council") of the City of Georgetown, Texas (hereinafter referred to as the "City "), is authorized by Chapter 372, Texas Local Government Code, as amended (hereinafter referred to as the "Act"), to create public improvement districts within the corporate limits and extraterritorial jurisdiction of the City; and WHEREAS, on or about March 22, 2022, the City Council for the City, approved Resolution No. 032222-AA, creating the Bluffview Public Improvement District; and WHEREAS, the Bluffview Public Improvement District consists of approximately 68.59 contiguous acres located within the City; and WHEREAS, on or about the City Council, approved Ordinance No. (hereinafter referred to as the "Assessment Ordinance") approving a service and assessment plan and assessment roll for the Property within the Bluffview Public Improvement District; and WHEREAS, the Assessment Ordinance imposed an assessment in the amount of $ (hereinafter referred to as the "Lien Amount") for the following property: [legal description], a subdivision in Williamson County, Texas, according to the map or plat of record in Document/Instrument No. of the Plat Records of Williamson County, Texas (hereinafter referred to as the "Property"); and WHEREAS, the property owners of the Property have paid unto the City the Lien Amount. RELEASE NOW THEREFORE, the City, the owner and holder of the Lien, Instrument No. , in the Real Property Records of Williamson County, Texas, in the amount of the Lien Amount against the Property releases and discharges, and by these presents does hereby release and discharge, the above -described Property from said lien held by the undersigned securing said indebtedness. EXECUTED to be EFFECTIVE this the day of , 20_. CITY OF GEORGETOWN, TEXAS, By: [City Official Name], City Official Title ATTEST: [Secretary Name], City Secretary STATE OF TEXAS § COUNTY OF WILLIAMSON § This instrument was acknowledged before me on the day of , 20J by [City Official Name], City Official Title for the City of Georgetown, Texas, on behalf of said municipality. Notary Public, State of Texas EXHIBIT L-1— LOT TYPE 1 BUYER DISCLOSURE NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public 'improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.0035), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court -ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING' RETURN TO: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO GEORGETOWN, TEXAS CONCERNING THE FOLLOWING PROPERTY PROPERTY ADDRESS LOT TYPE 1 PRINCIPAL ASSESSMENT: $36,599.10 As the purchaser of the real property described above, you are obligated to pay assessments to Georgetown, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Bluffview Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Georgetown. The exact amount of each annual installment will be approved each year by the Georgetown City Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from the City of Georgetown. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. ' To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County when updating for the Current Information of Obligation to Pay Improvement District Assessment. [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: SIGNATURE OF PURCHASER DATE: SIGNATURE OF PURCHASER The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: SIGNATURE OF SELLER DATE: SIGNATURE OF SELLER] 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. DATE: SIGNATURE OF PURCHASER STATE OF TEXAS COUNTY OF WILLIAMSON DATE: SIGNATURE OF PURCHASER The foregoing instrument was acknowledged before me by _ and known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this . 20 . Notary Public, State of Texas]3 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. DATE: SIGNATURE OF SELLER STATE OF TEXAS § COUNTY OF WILLIAMSON § DATE: SIGNATURE OF SELLER The foregoing instrument was acknowledged before me by and , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this , 20_. Notary Public, State of Texas]' 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment ANNUAL INSTALLMENTS - LOT TYPE 1 Year 1 $ 649.69 $ 2,195.95 $ 353.43 $ 3,199.06 Year 2 693.00 2,156.96 360.50 3,210.46 Year 3 736.31 2,115.38 367.71 3,219.41 Year 4 779.63 2,071.21 375.06 3,225.89 Year 5 822.94 2,024.43 382.56 3,229.93 Year 6 909.56 1,975.05 390.22 3,274.83 Year 7 952.88 1,920.48 398.02 3,271.37 Year 8 996.19 1,863.31 405.98 3,265.47 Year 9 1,082.81 1,803.53 414.10 3,300.45 Year 10 1,126.13 1,738.57 422.38 3,287.07 Year 11 1,212.75 1,671.00 430.83 3,314.58 Year 12 1,256.06 1,598.23 439.45 3,293.74 Year 13 1,342.69 1,522.87 448.24 3,313.79 Year 14 1,429.31 1,442.31 457.20 3,328.82 Year 15 1,515.94 1,356.55 466.34 3,338.83 Year 16 1,602.56 1,265.59 475.67 3,343.83 Year 17 1,689.19 1,169.44 485.18 3,343.81 Year 18 1,819.13 1,068.09 494.89 3,382.10 Year 19 1,905.75 958.94 504.79 3,369.48 Year 20 21035.69 844.59 514.88 3,395.17 Year 21 21122.31 722.45 525.18 3,369.95 Year 22 2,252.25 595.11 535.68 3,383.05 Year 23 2,425.50 459.98 546.40 3,431.88 Year 24 2,555.44 314.45 557.32 3,427.21 Year 25 1 2,685.38 161.12 568.47 3,414.97 Total $ 36,599.10 $ 35,015.59 $ 11,320.48 $ 82,935.17 [a] Interest is calculated at a 6.00% rate for illustrative purposes. [b] The Annual Installment due date for Year 1 will be determined by the Trigger Date as described in Section V.B. [c] Until the Trigger Date has been reached for a Parcel, only Annual Collection Cost will be collected. Note: The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. EXHIBIT L-2 — LOT TYPE 2 BUYER DISCLOSURE I NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.0035), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court -ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING' RETURN TO: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO GEORGETOWN, TEXAS CONCERNING THE FOLLOWING PROPERTY PROPERTY ADDRESS LOT TYPE 2 PRINCIPAL ASSESSMENT: $43,918.92 As the purchaser of the real property described above, you are obligated to pay assessments to Georgetown, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Bluffview Public improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. - The exact amount of the assessment may be obtained from the City of Georgetown. The exact amount of each annual installment will be approved each year by the Georgetown City Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from the City of Georgetown. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County when updating for the Current Information of Obligation to Pay Improvement District Assessment. [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: SIGNATURE OF PURCHASER DATE: SIGNATURE OF PURCHASER The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: SIGNATURE OF SELLER DATE: SIGNATURE OF SELLER]Z 2 To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. DATE: SIGNATURE OF PURCHASER STATE OF TEXAS COUNTY OF WILLIAMSON DATE: SIGNATURE OF PURCHASER The foregoing instrument was acknowledged before me by and known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this .20 Notary Public, State of Texas] 3 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. DATE: SIGNATURE OF SELLER STATE OF TEXAS COUNTY OF WILLIAMSON DATE: SIGNATURE OF SELLER The foregoing instrument was acknowledged before me by and , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this _ , 20_, Notary Public, State of Texas]' 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment ANNUAL INSTALLMENTS - LOT TYPE 2 Annual InstalEm-ents Annual Collection Total Annual Due [b] Principal Interest [a] Costs installment [c] Year 1 $ 779.63 $ 2,635.14 $ 424.12 $ 3,838.88 Year 2 831.60 2,588.36 432.60 3,852.56 Year 3 883.58 2,538.46 441.25 3,863.29 Year 4 935.55 2,485.45 450.08 3,871.07 Year 5 987.53 2,429.31 459.08 3,875.92 Year 6 1,091.48 2,370.06 468.26 3,929.80 Year 7 1,143.45 2,304.57 477.62 3,925.65 Year 8 1,195.43 2,235.97 487.18 3,918.57 Year 9 1,299.38 2,164.24 496.92 3,960.54 Year 10 1,351.35 2,086.28 506.86 3,944.49 Year 11 1,455.30 2,005.20 517.00 3,977.49 Year 12 1,507.28 1,917.88 527.34 3,952.49 Year 13 1,611.23 1,827.44 537.88 3,976.55 Year 14 1,715.18 1,730.77 548.64 3,994.59 Year 15 1,819.13 1,627.86 559.61 4,006.60 Year 16 1,923.08 1,518.71 570.80 4,012.59 Year 17 2,027.03 1,403.33 582.22 4,012.57 Year 18 2,182.95 1,281.70 593.87 4,058.52 Year 19 2,286.90 1,150.73 605.74 4,043.37 Year 20 2,442.83 1,013.51 617.86 4,074.20 Year 21 2,546.78 866.94 630.21 4,043.94 Year 22 2,702.70 714.14 642.82 4,059.66 Year 23 2,910.60 551.98 655.68 4,118.25 Year 24 3,066.53 377.34 668.79 4,112.66 Year 25 3,222.45 193.35 682.16 4,097.97 Total $ 43,918.92 $ 42,018.71 $ 13,584.58 $ 99,522.21 [a] Interest is calculated at a 6.00% rate for illustrative purposes. [b] The Annual Installment due date for Year 1 will be determined by the Trigger Date as described in Section V.B. [c] Until the Trigger Date has been reached for a Parcel, only Annual Collection Cost will be collected. Note: The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. I EXHIBIT L-3 — LOT TYPE 3 BUYER DISCLOSURE I NOTICE OF OBLIGATIONS RELATED TO PUBLIC IMPROVEMENT DISTRICT A person who proposes to sell or otherwise convey real property that is located in a public improvement district established under Subchapter A, Chapter 372, Local Government Code (except for public improvement districts described under Section 372.0035), or Chapter 382, Local Government Code, shall first give to the purchaser of the property this written notice, signed by the seller. For the purposes of this notice, a contract for the purchase and sale of real property having a performance period of less than six months is considered a sale requiring the notice set forth below. This notice requirement does not apply to a transfer: 1) under a court order or foreclosure sale; 2) by a trustee in bankruptcy; 3) to a mortgagee by a mortgagor or successor in interest or to a beneficiary of a deed of trust by a trustor or successor in interest; 4) by a mortgagee or a beneficiary under a deed of trust who has acquired the land at a sale conducted under a power of sale under a deed of trust or a sale under a court -ordered foreclosure or has acquired the land by a deed in lieu of foreclosure; 5) by a fiduciary in the course of the administration of a decedent's estate, guardianship, conservatorship, or trust; 6) from one co-owner to another co-owner of an undivided interest in the real property; 7) to a spouse or a person in the lineal line of consanguinity of the seller; 8) to or from a governmental entity; or 9) of only a mineral interest, leasehold interest, or security interest The following notice shall be given to a prospective purchaser before the execution of a binding contract of purchase and sale, either separately or as an addendum or paragraph of a purchase contract. In the event a contract of purchase and sale is entered into without the seller having provided the required notice, the purchaser, subject to certain exceptions, is entitled to terminate the contract. A separate copy of this notice shall be executed by the seller and the purchaser and must be filed in the real property records of the county in which the property is located at the closing of the purchase and sale of the property. AFTER RECORDING' RETURN TO: NOTICE OF OBLIGATION TO PAY IMPROVEMENT DISTRICT ASSESSMENT TO GEORGETOWN, TEXAS CONCERNING THE FOLLOWING PROPERTY PROPERTY ADDRESS LOT TYPE 3 PRINCIPAL ASSESSMENT: $52,702.70 As the purchaser of the real property described above, you are obligated to pay assessments to Georgetown, Texas, for the costs of a portion of a public improvement or services project (the "Authorized Improvements") undertaken for the benefit of the property within Bluffview Public Improvement District (the "District") created under Subchapter A, Chapter 372, Local Government Code. AN ASSESSMENT HAS BEEN LEVIED AGAINST YOUR PROPERTY FOR THE AUTHORIZED IMPROVEMENTS, WHICH MAY BE PAID IN FULL AT ANY TIME. IF THE ASSESSMENT IS NOT PAID IN FULL, IT WILL BE DUE AND PAYABLE IN ANNUAL INSTALLMENTS THAT WILL VARY FROM YEAR TO YEAR DEPENDING ON THE AMOUNT OF INTEREST PAID, COLLECTION COSTS, ADMINISTRATIVE COSTS, AND DELINQUENCY COSTS. The exact amount of the assessment may be obtained from the City of Georgetown. The exact amount of each annual installment will be approved each year by the Georgetown City Council in the annual service plan update for the district. More information about the assessments, including the amounts and due dates, may be obtained from the City of Georgetown. Your failure to pay any assessment or any annual installment may result in penalties and interest being added to what you owe or in a lien on and the foreclosure of your property. To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County when updating for the Current Information of Obligation to Pay Improvement District Assessment. [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: SIGNATURE OF PURCHASER DATE: SIGNATURE OF PURCHASER The undersigned seller acknowledges providing this notice to the potential purchaser before the effective date of a binding contract for the purchase of the real property at the address described above. DATE: SIGNATURE OF SELLER DATE: SIGNATURE OF SELLER] z To be included in copy of the notice required by Section 5.014, Tex. Prop. Code, to be executed by seller in accordance with Section 5.014(a-1), Tex. Prop. Code. Signature Page to Initial Notice of Obligation to Pay Improvement District Assessment [The undersigned purchaser acknowledges receipt of this notice before the effective date of a binding contract for the purchase of the real property at the address described above. The undersigned purchaser acknowledged the receipt of this notice including the current information required by Section 5.0143, Texas Property Code, as amended. DATE: SIGNATURE OF PURCHASER STATE OF TEXAS COUNTY OF WILLIAMSON DATE: SIGNATURE OF PURCHASER The foregoing instrument was acknowledged before me by and , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this Notary Public, State of Texas]3 20 3 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County. Purchaser Signature Page to Final Notice with Current Information of Obligation to Pay Improvement District Assessment [The undersigned seller acknowledges providing a separate copy of the notice required by Section 5.014 of the Texas Property Code including the current information required by Section 5.0143, Texas Property Code, as amended, at the closing of the purchase of the real property at the address above. DATE: SIGNATURE OF SELLER STATE OF TEXAS COUNTY OF WILLIAMSON § DATE: SIGNATURE OF SELLER The foregoing instrument was acknowledged before me by and , known to me to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged to me that he or she executed the same for the purposes therein expressed. Given under my hand and seal of office on this , 20. Notary Public, State of Texas]' 4 To be included in separate copy of the notice required by Section 5.0143, Tex. Prop. Code, to be executed at the closing of the purchase and sale and to be recorded in the deed records of Williamson County. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment ANNUAL INSTALLMENTS - LOT TYPE 3 Installments Annual Collection Total Annual PrincipalAnnual Year 1 $ 935.55 $ 3,162.16 $ 508.94 $ 4,606.65 Year 2 997.92 3,106.03 519.12 4,623.07 Year 3 1,060.29 3,046.15 529.50 4,635.95 Year 4 1,122.66 2,982.54 540.09 4,645.29 Year 5 1,185.03 2,915.18 550.89 4,651.10 Year 6 1,309.77 2,844.07 561.91 4,715.76 Year 7 1,372.14 2,765.49 573.15 4,710.78 Year 8 1,434.51 2,683.16 584.61 4,702.28 Year 9 1,559.25 2,597.09 596.30 4,752.64 Year 10 1,621.62 2,503.53 608.23 4,733.39 Year 11 1,746.36 2,406.24 620.39 4,772.99 Year 12 1,808.73 2,301.46 632.80 4,742.99 Year 13 1,933.47 2,192.93 645.46 4,771.86 Year 14 2,058.21 2,076.92 658.37 4,793.50 Year 15 2,182.95 1,953.43 671.54 4,807.92 Year 16 2,307.69 1,822.45 684.97 4,815.11 Year 17 2,432.43 1,683.99 698.67 4,815.09 Year 18 2,619.54 1,538.05 712.64 4,870.23 Year 19 2,744.28 1,380.87 726.89 4,852.05 Year 20 2,931.39 1,216.22 741.43 4,889.04 Year 21 3,056.13 1,040.33 756.26 4,852.72 Year 22 3,243.24 856.96 771.38 4,871.59 Year 23 3,492.72 662.37 786.81 4,941.90 Year 24 3,679.83 452.81 802.55 4,935.19 Year 25 3,866.94 232.02 818.60 4,917.56 Total $ 52,702.70 $ 50,422.45 $ 16,301.49 $ 119,426.65 [a] Interest is calculated at a 6.00% rate for illustrative purposes. [b] The Annual Installment due date for Year 1 will be determined by the Trigger Date as described in Section V.B. [c] Until the Trigger Date has been reached for a Parcel, only Annual Collection Cost will be collected. Note: The figures shown above are estimates only and subject to change in Annual Service Plan Updates. Changes in Annual Collection Costs, reserve fund requirements, interest earnings, or other available offsets could increase or decrease the amounts shown. Annual Installment Schedule to Notice of Obligation to Pay Improvement District Assessment EXHIBIT H IMPROVEMENT AREA 2 (W Tract) — Development Scenarios Description of Improvement Area #2 Improvement Area #2 Alternative PID Policy Development Scenario Assessment (Major Assessment Requirements Improvements) (Improvements solely benefiting Improvement Area #2) For Sale Product- Applicable Applicable Non -Applicable Public Internal Improvements For Rent Product- Applicable Non applicable Applicable Private Internal Improvements For Sale Product— Applicable Non applicable Non -Applicable Private Internal Improvements For Rent Product — Applicable Applicable Applicable Public Internal Improvements EXHIBIT H—PAGE I Exhibit "I" Improvement Area #2 Improvements Street/Park Improvements: The street improvements include clearing and grubbing, excavation/embankment, subgrade preparation, flexible base, Hot Mix Asphalt Concrete, curb and gutter, traffic control, streetlights, concrete sidewalk/path/trail, sidewalk ramps, street marking and signs, saw cut and tie to existing pavement, and tree protection. Water Improvements: Water improvements include tie to existing water line, trench safety, water lines, gate valves, fire hydrants, valve casting adjustments, cast iron fittings, and services. Wastewater Improvements: Wastewater improvements includes wastewater lines, trench safety, manholes, extra depth, raise manhole castings, bore with encasement, connection to existing line, and services. Drainage Improvements: The drainage includes storm sewer, trench safety, manholes, junction boxes, curb inlets, grate inlets, berms, berm/swale, channel and headwall. The water quality/detention ponds are excluded from the definition of Authorized Improvements. Permanent Restoration: Permanent Restoration includes hydro -mulch seeding, sod, and reinforced matting. Temporary Erosion Controls Temporary Erosion Controls include stabilized construction entrance, silt fence rock EXMBiT i - PAGE 1 berm and curb inlet protection. Landscaping Common area landscaping (trees, shrubs, sod, irrigation), and a wall along Southwest Bypass. Soft Costs Includes 15% contingency, 12% engineering and surveying, and 4% project management. EXHIBIT I - PAGE 2