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Minutes TC 11/25/2014MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Tuesday, November 25, 2014 at 6:00 P.M. Svore Municipal Building Boardroom The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Tuesday, November 25, 2014. The meeting was held within the boundaries of the Town and was open to the public. STATE OF TEXAS § COUNTY OF DENTON § TOWN COUNCIL MEMBERS PRESENT: C. Nick Sanders Mayor Greg Lamont Mayor Pro Tem, Place 5 Jim Parrow Council Member, Place 1 Garrett Reed Council Member, Place 2 Rhylan Rowe Council Member, Place 3 Tim Kurtz Council Member, Place 4 Philip Shoffner Council Member, Place 6 STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager Patricia Adams Town Attorney Tammy Ard Town Secretary April Reiling PIO/Marketing Manager Patrick Arata Police Chief Mayor Sanders announced the date of Tuesday, November 25, 2014 called the Town Council to order and announced a quorum at 6:03 p.m. The Invocation was offered by Council Member Parrow. The Pledges were led by Council Member Shoffner. CONVENE INTO JOINT SPECIAL SESSION - START TIME— 6:12 P.M. SPECIAL SESSION JOINT MEETING WITH ECONOMIC DEVELOPMENT CORPORATION 4B (EDC 4B) AND TIRZ NO. 1 BOARD ECONOMIC DEVELOPMENT CORPORATION (EDC) 4B MEMBERS PRESENT: Dave Brod Vice President Rebecca Shuman Director Sean Weaver Director Eric Jensen Director ECONOMIC DEVELOPMENT CORPORATION (EDC) 4B MEMBERS ABSENT: Gregory Wilson President Gerald Rapp Secretary/Treasurer November 25, 2014 Minutes Page 1 of 57 TAX INCREMENT REINVESTMENT ZONE (TIRZ) NO. 1 BOARD MEMBERS PRESENT: Dave Brod Chair Darryl Howard Board Member Jared King Board Member TAX INCREMENT REINVESTMENT ZONE (TIRZ) NO. 1 BOARD MEMBERS ABSENT: Adam Broyles Vice Chair Carolyn Simms Tarrant County Representative 1. Consider and take appropriate action to reaffirm the Incentive Term Sheet for Old Town Development, previously approved on March 24, 2014 and consider and take appropriate action regarding proposed amendments to the Term Sheet. Town Manager Mike Slye provided a broad overview of the previous action and introduced Old Town Development (OTD) representatives Chris Gordon and Justin Springfield. OTD is seeking to reaffirm the deal sheet from a previous opportunity for a different property in the same area (Trophy Wood). Justin Springfield and Chris Gordon owners of Old Town Development (OTD) provided an overview of OTD's commitments, history, future and provided a presentation and answered questions from Town Council, EDC4B and TIRZ No. 1. The property is currently under contract and the proposed deal would bring in two to three new destination restaurants to Trophy Club with a possible 2016 opening. The Town Council, EDC 4B Board and TIRZ Board reviewed the previous Term Sheet and suggested possible changes for an updated document. Attachment A — OTD Presentation Attachment 8 — Term Sheet (redlined) Attachment C — Executed Term Sheet COUNCIL RECESSED - 8:03 P.M. RECONVENE INTO REGULAR SESSION - START TIME — 8:18 P.M. TIRZ No. 1 Motion made by Board Member King, seconded by Board Member Howard to accept the term sheet as amended this evening. Motion carried unanimously. EDC 4B Motion made by Chairman Brod, seconded by Director Weaver to accept the term sheet as amended this evening. Motion carried unanimously. Town Council Motion made by Mayor Pro Tem Lamont, seconded by Council Member Reed, to accept the term sheet as amended this evening. Motion passed unanimously. Motion made by Board Member King seconded by Darryl Howard to adjourn. Motion carried unanimously. TIRZ No. 1 Board meeting adjourned at 9:14 p.m. Motion made by Director Sean Weaver seconded by Director Shuman to adjourn. November 25, 2014 Minutes Page 2 of 57 TOWN COUNCIL ADJOURNED JOINT SESSION AND RECONVENE INTO REGULAR SESSION — 9:16 P.M. CITIZEN PRESENTATIONS This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. You may speak up to four (4) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. Citizen Presentations was moved prior to the Joint Meeting Laura Bathgate, 11 Wentworth Court, property backs up to a property that raises chickens. It is a nuisance, odor, would like fowl turkey, peacocks and duck be included in the prohibited fowl. Please consider how you would want this if you lived near this. Susan Edstrom, 269 Oak Hill Drive provided an update regarding the 301" Anniversary celebration festivities Attachment D — 301" Anniversary Presentation CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 2. Consider and take appropriate action regarding the Minutes dated September 9, 2014. 3. Consider and take appropriate action regarding the Minutes October 28, 2014. 4. Consider and take appropriate action regarding an Ordinance of the Town repealing Ordinance 2014-09 and Ordinance No. 2014-19 creating and amending Tax Increment Reinvestment Zone No. Two, Town of Trophy Club, Texas (TIRZ No.2); and providing an effective date. 5. Consider and take appropriate action regarding a Resolution of the Town Council repealing Resolution No. 2014-08 appointing citizens to serve on the Board of Directors of Tax Increment Reinvestment Zone Number Two, Town of Trophy Club, Texas; and providing an effective date. 6. Consider and take appropriate action regarding the resignation of Town Secretary /RMO Tammy Ard. 7. Consider and take appropriate action to appoint Tammy Ard as the interim Town Secretary/RMO until a permanent Town Secretary/RMO is hired. Council Member Shoffner requested to remove agenda items 6 & 7. Motion made by Council Member Parrow, seconded by Mayor Pro Tem Lamont, to approve the Consent Agenda items 2, 3, 4 and 5. Motion passed unanimously. Main Motion Motion made by Council Member Shoffner, seconded by Council Member Rowe to accept the resignation of Town Secretary /RMO Tammy Ard terminate her employment agreement and not use Town Secretary /RMO Tammy Ard in the interim until a permanent Town Secretary/RMO is hired. November 25, 2014 Minutes Page 3 of 57 Substitute Motion Mayor Pro Tem Lamont seconded by Council Member Parrow accept the resignation of Town Secretary /RMO Tammy Ard terminate her employment agreement and use Town Secretary /RMO Tammy Ard in the interim until a permanent/temporary replacement Town Secretary/RMO is hired. Motion fails 2-5-0 with Mayor Pro Tem Lamont and Council Member Kurtz voting for and Council Member Parrow, Council Member Reed, Council Member Rowe, Council Member Shoffner and Mayor Sanders voting against. Main motion Motion carries 4-3-0 with Council Member Parrow, Council Member Reed, Council Member Rowe, and Council Member Shoffner voting for and Mayor Pro Tem Lamont, Mayor Sanders and Council Member Kurtz voting against. Mayor Sanders rules agenda item #7 out of order since this was handled in agenda item #6. After advice from Town Attorney relating to the need to designate an acting Town Secretary, Council member Rowe moved to reconsider the previous motion in agenda item #6 seconded by Council Member Reed. Main Motion brought back Motion made by Council Member Shoffner, seconded by Council Member Rowe to accept the resignation of Town Secretary /RMO Tammy Ard terminate her employment agreement and not use Town Secretary /RMO Tammy Ard in the interim until a permanent Town Secretary/RMO is hired. Substitute motion Motion made by Mayor Sanders, seconded by Mayor Pro Tem Lamont to accept the resignation of Town Secretary /RMO Tammy Ard and continue her current terms of employment until such time that a permanent/temporary replacement Town Secretary/RMO is obtained. Motion carries 6-1-0 with Mayor Sanders, Mayor Pro Tem Lamont, Council Member Rowe, Council Member Reed, Council Member Kurtz and Council Member Parrow voting for and Council Member Shoffner voting against. Mayor Sanders called the Town Council back into Joint Session with the EDC4B Board and the TIRZ Board at 8:54 P.M. (refer back to agenda item #1) Chairman Brod called the EDC4B Board back into Joint Session at 8:54 P.M. Chairman Brod called the TIRZ No. 1 Board back into Joint Session at 8:54 P.M ADJOURN JOINT SESSION AND RECONVENE INTO REGULAR SESSION — 9:16 P.M. REGULAR SESSION 8. Update and discussion regarding capping and removing well equipment on six gas well sites. Matt Jones, Senior Planner provided an update and answered questions regarding the Vantage Energy well capping and removing the well equipment on six (6) gas well sites and seventeen (17) well holes. The sites are currently zoned residential and the ordinance states that the sites must be restored back to there pre -drilling condition within 60 days as practical as possible. Vantage has agreed to seed those properties in the spring. A suggestion was made to hold a citizen meeting regarding the walls to gather feedback regarding what residents would like to see happen with the walls (stay up or come down). Dennis Sheridan, 1 Hillcrest Court, addressed the council regarding well sites versus the wells. No action taken, discussion only. November 25, 2014 Minutes Page 4 of 57 Consider and take appropriate action regarding a Resolution of the Town repealing Resolution No. 2014-04 appointing citizens to serve on the Board of Directors of Reinvestment Zone No One, Town of Trophy Club, Texas, and adopting this Resolution reaffirming existing appointments and appointing a member of the Board of Directors of Reinvestment Zone No. One, to serve as Chairperson for the Board, designating a term of service; and providing an effective date. Moved this item prior to agenda item #8. Main motion Motion made by Mayor Pro Tem Lamont, seconded by Council Member Reed, to approve Resolution 2014-44 to appoint David Brod as Chair ofTIRZ No. 1, reaffirm Carol Sims to expire 2015, Darryl Howard to expire 2016, Jared King to expire 2015, and not reaffirming Adam. Substitute motion Motion made by Mayor Sanders to approve Resolution 2014-44 appoint David Brod as Chair and reaffirm all other appointments. Substitute motion failed for lack of a second. Amended motion Motion made by Council Member Rowe to approve Resolution 2014-44 appoint David Brod as Chair, and reaffirm all other appointments including Adam Broyles term expiring 2016 requesting the Town Manager to request his intentions regarding recusing himself and report back to council. Substitute motion failed for lack of a second. Motion made by Mayor Sanders and seconded by Mayor Pro Tem Lamont to refer this item to a future agenda. Motion passed unanimously. 10. Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club providing for increased prior and current service annuities (repeating or ad hoc) under the act governing the Texas Municipal Retirement System ("TMRS") for retirees and beneficiaries of deceased retirees of the Town of Trophy Club, and establishing an effective date for the ordinance. Attachment E — Executed Ordinance 2014-40 Motion made by Mayor Pro Tem Lamont, seconded by Council Member Rowe, adopting Ordinance 2014-40 providing for 30% participation rate of an annual CPI adjustment on a repeating basis with an effective date of January 1, 2015. Motion carried 6-1-0 with Council Member Parrow, Council Member Reed, Council Member Rowe, Mayor Sanders, Mayor Pro Tem Lamont and Council Member Kurtz, voting for and Council Member Shoffner voting against. 11. Consider and take appropriate action to reschedule the date for the December Town Council regular session meeting to December 9, 2014 and schedule a special called meeting to review site plans for joint Town Hall and Police facility with GSBS Architects. Motion made by Council Member Reed, seconded by Council Member Rowe, to have the regular Town Council meeting on Tuesday, December 9, 2014 and a special session meeting with GSBS on Thursday, December 18, 2014. Motion passed unanimously. November 25, 2014 Minutes Page 5 of 57 12. Consider and take appropriate action concerning the purchase and implementation of Active Net software to be used by the Parks and Recreation Department; and authorizing the Mayor or his designee to execute all necessary documents. Motion made by Mayor Sanders, seconded by Mayor Pro Tem Lamont, to approve the purchase of Active Net software as proposed with the partial funding coming from the Trophy Club Park funds. Motion passed unanimously. 13. Consider and take appropriate action regarding the appointment of a hiring committee for a new Town Secretary/RMO. Council provided input and reviewed a Job Description for the Town Secretary/RMO position. Original Motion Motion made by Mayor Sanders, seconded by Council Member Parrow, to approve appointing Mayor Sanders, Council Member Shoffner and Town Manager Slye a hiring committee for to a new Town Secretary/RMO. Amended motion Motion made by Council Member Rowe and seconded by Council Member Reed appointing Mayor Sanders, Council Member Shoffner, Town Manager Slye and Council Member Rowe to a hiring committee for a new Town Secretary/RMO. Motion passed unanimously. Original Motion Motion passed unanimously. 14. Consider and take appropriate action regarding an Ordinance of the Town amending various sections of Article I, "Animals" of Chapter II, "Animal Control' of the Code of Ordinances, to adopt regulations regarding the keeping of Fowl within the corporate limits of the Town; providing for regulations relative to enclosures, setbacks for coops, nuisances and other related matters; providing a penalty for violations; and providing an effective date. Item moved after agenda item 49 Susan Edstrom, 269 Oak Hill Drive requesting this item be sent back to the Animal Shelter Advisory Board for review and recommendation. Original Motion Motion made by Mayor Pro Tem Lamont, seconded by Council Member Parrow, to refer this item to the Animal Shelter Advisory Board for review and recommendation for Council consideration. Amended motion Motion made by Council Member Shoffner, seconded by Council Member Rowe to refer this item to the Animal Shelter Advisory Board for review and recommendation and review of chapter two animal control in the code of ordinances. Motion passed unanimously. Original motion Motion passed unanimously. November 25, 2014 Minutes Page 6 of 57 Council indicated that a possible Workshop between the Council and Animal Shelter Advisory Board would be helpful. 15. Town Council Liaison Updates; discussion of same: • Parks & Recreation Board - November 17th Council Liaison - Council Member Shaffner 16. Town Manager Slye's update regarding the following; discussion and provide input regarding same. • Transportation Update — Indian Creek Project — 114 • Human Resources Update — Human Resources — Director of Finance • Parks & Recreation — Christmas Celebration, December 6th • Crosswalk Safety Improvements • Food Drive for Roanoke Food Pantry Town Manager Slye updated the Council and addressed questions; no action taken, update only. 17. Items for Future Agendas. This item allows Council to request the placement of items on upcoming agendas when the topic of discussion requires research and review that cannot be accomplished in the time frame between regular Council meetings. However, a Council Member may request that an item be placed on the next regularly scheduled meeting without first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter requirements. No changes were made to the list. EXECUTIVE SESSION 18. Pursuant to Texas Government Code, Annotated, Subchapter 551, Council will convene into closed executive session as authorized by Section 551.072 Deliberations about Real Property to deliberate the purchase, exchange, lease, or value of real property if deliberation in an open meeting would have a detrimental effect on the position of the governmental body in negotiations with a third person: (1) Potential sites for the location of a new Police and Town Hall Facility and related negotiations CONVENE INTO EXECUTIVE SESSION—START TIME -10:45 P.M. RECONVENE INTO REGULAR SESSION—START TIME -11:03 P.M. RECONVENE INTO REGULAR SESSION 19. Consider and take appropriate action regarding the Executive Session. No action taken. November 25, 2014 Minutes Page 7 of 57 ADJOURN rft'Yion made by Council IMerrioer Kurtz, seconded by Council Member Parrow, to adjourn. Motion carried ianaAously. Meeting adjourne�at 11:04 p.m. Van1J/Ard, Ton Secretary Down of Troph lub, Texas Nog" nbg�,�[71;�VIIn,y ute5 C. Nick Sanders, Mayor Town of Trophy Club, Texas PageO(0513 ATTACHMENT A OTD Presentation November 25, 2014 Minutes Page 9 of 57 1I I M CA 4J � 4.� O CA pto Q U_ o -- to -- -- 4-0 rn V CA CA "d I I I I I I I I W CCA CA ci v CA y CA CA 4-0 CA to ct "0O CA C w .� as j- ;� r/s � • ^' r�is � •r0, ~ •� CA W O v � O GA O CA to � CA 4-j CA Ct W bA4. CA ^" CA p 4-0 O C 4-0 � C CA CA ci •� W W aA c ci CA ci ° 4. PLO bA � C' 4-0 4.0 CA CA C� A ee N to °' o CACA li CA C 0. CA � A � P -I !—I �/ A V� Qn O z OI CA I T�� V1 I CA O I I I I 5� CA •O � 4-0 1I I M 4J � O pto Q U_ o -- to -- -- rn "d I I I I I I I I bA to ct w ct O � 4-j Ct W � � W W W aA PLO bA � A ee N to cl,� �/ M !—I P -I !—I �/ F�-•I V� ct z OI I T�� V1 I I O I I I I 5� 1I I M U O H m -I"- 0 Ir- T- N N 0 ,=E IL, 0 0 0 00 t 55 1! 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U 0 cn 4-1 .CL > ❑ CU U) C N L p r cu ta J c 0 0 • F --- z W 0 LU W z 0 0 W U) LUJ W 0 ❑ W H 0 G) CL LL a) E ca 0. -014 0 CU E cu CD - w -6--o L.. 4 0 U) U 0 z J CL' cu L • _0 cu cli ; -0 Q Q- O 0 >, Qi 0 . d (3) + 4-0 co cu 6c*- cu c -0 t E 0 En cu T x > cu 0 0 `—W 00 cu C!) r— W U) � U) — > O •� CU _ Z CO 0 Q W cu 0 U a 0 rcu 0 W cu U 0 Ce � • cu cu coo J CL = CL Z a) 3 � LU C) 0 C Jz ❑ J cu c © c > C:W _Cu W J - < z 0 • CL r t00/ �..+► • CL • *I L� (A All 0 L Vol, LL R- 0 f� x 7D 0 1� N u U) 7 C 0 N L N N E 0 0 z Fo N �--I ELOLO 4) .iy ,�I o o 0 00N PLO 00 m X �(1)[7C)[ ] � r -I T o t -i V s --i o DL 0 M o C L *I L� (A All 0 L Vol, LL R- 0 f� x 7D 0 1� N u U) 7 C 0 N L N N E 0 0 z ATTACHMENT B Term Sheet (redlined) November 25, 2014 Minutes Page 29 of 57 TERM SHEET FOR A PUBLIC-PRIVATE PARTNERSHIP Between THE TOWN OF TROPHY CLUB, TEXAS ("TOWN"), TAX INCREMENT FINANCING DISTRICT #1 (TIRZ #1) THE TROPHY CLUB ECONOMIC DEVELOPMENT CORPORATION 4B ("EDC") And OLD TOWN DEVELOPMENT, LLC ("OTD") or as assigns 1. Background: Old Town Development, LLC ("OTD") or as assignstTlB seeks to purchase an approximately 3.37 4 acre tract of land generally located in the Trophy Wood Plaza project comprised of Lots 1, 2 & 3 (the "Property"). OTDown betwee proposes to construct development consisting of 3-4 restaurants which will generate ad valorem and sales tax revenue to the Town. 2. Proposed Development and Obligations: OTD proposes to develop the Property in accordance with PD -5425 and all other Town ordinances and to timely comply with each of the following development standards for the project (the "Development"): a. Purchase approximately 3.379-5-.4 acres at 1496,797-,045 SF to develop 3-4 high quality restaurants as specified below. b. For incentive purposes, the price per acre for the land shall not exceed $7.25/ft for a maximum total purchase price of $1,705T0'72�64,278.25 c. Make all public and private improvements which shall exceed $2,5 ;800,000 appraised value in accordance with the time frames set forth below. d. Each restaurant must sign, at minimum, a lease with a 10 year initial term. e. Provide nt two (2) executed restaurant leases -s and obtain a Gei4 ifieate ~r n,.,.,,paney f ,. beth within twenty-four24) months of the date of the executed Tow appFoval 4the f4~^' Trophy Club Developerls Agreement and obtain.. two ','~����~a ~�Certificates of Occupancy within thirty-six 361 months of executed Twv evpl' ~f t efina4– Trophy Club Developer Agreement. f OTD shall provide two (2) separate restaurant quarterly gross sales to the Town within ten (10) days following the end of each quarter, and shall end upon date of termination of the Developer Agreement. g. Comply with all other requirements set forth below. 3. Estimated Appraised Value, Job Creation, and Gross Sales Generation: The eventual Estimated Appraised Value and Gross Sales production of the Proposed Development is anticipated to be at least $12.8 Million per year within 5 years of receiving their first two Certificates of Occupancy. The estimated property tax and sales tax generation to the Town is estimated to be $250,000 per year within 5 years of receiving both of their first two Certificates of Occupancy. **No guarantees, just an outline ofprojections * * November 25, 2014 Minutes Page 30 of 57 EDC Obligations: Pursuant to a Chapter 380 sales tax reimbursement agreement, the EDC will designate a portion of their annual budget to pay OTD's lender an amount not to exceed $1,4064,278.25(purchase price excluding interest) upon OTD's compliance with all conditions set forth in this section. EDC shall have the rights and remedies set forth below, and all payments shall be contingent upon OTD's compliance with each of the following conditions: 4. a. Payment Terms by EDC and Certificate of Occupancy Deadline. Upon OTD's closing on the purchase of the Property and execution of a Developer's Agreement, EDC shall pay OTD's lender OTT' ^r OT-D's'ende-r---monthly payments in the amount of $11,731.081111 ,z 731.08, for a period of twenty-four (24) months with a total payment not to exceed $4493.140,773 to OTD's lender annually OF a . eFiea of twenty (20) yea -Fs, which amount is the equivalent of principallg and interest for the property purchased by OTD during the twenty- four (24) month period. am,,,�t to exceed $1,705,374 A73,0364z278.�5 pttfehase pfiee fer . If at the end of the twenty-four (24)month period, OTD has failed to obtain two (2) Geffifiea4es of Qeetipangyexecuted leases, then Town's obligations thereafter shall terminate and EDC shall have the rights set forth in Section 4.b (below), unless the parties agree to an extension of time. Further, -if OTD fails to obtain a two 2) Certificates of Occupancy for each of the two (2) separate restaurant sites within thirty-six —(36) months after the execution of the Developer Agreement, all obligations of EDC thefeaftef hereunder shall terminate, unless the parties agree to an extension, and EDC shall have the rights set forth in Sections 4.b and 4.f (below). All time periods to obtain Certificates of Occupancy begin on the date upon which when the Developer Agreement is executed by the last party signingtgreement. ptie� If at the end of the initial twenty-four (24) month beriod. OTD has comblied with its obligations under this Section, EDC shall make monthly payments through the end of the thirty-six 36) month period. If at the end of the thirty-six (36) month period, OTD has complied with all obligations, EDC will continue with payments to the _,_ OTD's lender pursuant to the Developer Agreement for a period of seven (7) additional years at a into est fate not e?w-e a November 25, 2014 Minutes Page 31 of 57 x(54 percent (5 %). If EDC has exercised its right to ' she€spurchase the Property_ pursuant to Section 4.b (below) , then EDC shall continue making payments to heklefOTD's lender on its own behalf and OTD shall not be a party or beneficiary thereof, but shall comply with all of its obligations as set forth under Section 4.b (below). b. EDC/Town's Right to Purchase. -The right of EDC and/or Town Te� rht to purchase or require transfer of the Property shall be available at the end of the twenty four (24) month period -and again at the end of the thirty-six (36) month period if OTD fails to comply with the requirements of Section 4.a (above). OTD and Town, and Te- F DC, at the sole discretion e€of the To Town and EDC, shall structure the bank financing agreement(s) and Developers Agreement for the Property such that Town or EDC has the right to step into OTD's shoes as the purchaser of the Property and/or OTD is required to transfer title to the Property oto the EDC or Town if "on EDC's p.,ymefft of $STT 281, OTD has failed to comply with its obligations under Section 4.a (above). obtain Vv,o (2) r -e -Ft rieates of n,.,.",,ney f ,. twe se Fate-rest,,,,a fft sites. All payments made by EDC Tewrrto OTD shall be paid directly to OTD's lendert for satisfaction of OTD's loan to purchase the Property. c. Prepayment by EDC. The EDC has the right to pay the total principalie amount to OTD's lender at any time during the agreement term without penalty, as well as make additional i3t4twipleprincipal payments without penalty. POT -E. e wa}t t d. Discretionary Sale by OTD. The Town or EDC shall have the Right of First Refusal if OTD desires to sell the Property with or without infrastructure improvements at any time during the term of the Developer Agreement and until such time as �"�eetwo (2)=:(j)a restaurants have received Certificate of Occupancies. At which point as OTD complies with all of its obligations under Section 4.a (above)d4itieaa1 , neither Town nor EDC will no !Onger- has have a right of First Refusal, and -should OTD desire to sell the Property, the Town, EDC, and TIRZ #1 shall have the right to reasonably approve any and all future purchasers of the Propegy1he during the term of the Developer Agreement. Upon approval by Town, EDC and TIRZ #1 of the proposed purchaser of the Property, Developer Agreement shall be fully transferrable „p^„ EDC apps ,^' of ptffehaserto the approved purchaser. Refusal . mst be withit reaset Town, EDC and TIRZ#1 approval shall not be unreasonably withheld. November 25, 2014 Minutes Page 32 of 57 e. Lien Status. The EDC shall ahold 2nd 4�'Llien status, however any such lien status of To EDC will be subordinate to lenders position on all phases of development until ^mall required ^milestones as -set forth in �.M'11' 11 lo oil I mi - M97- Jim - f. Termination of Developer Agreement. In addition to the rights and remedies provided to Town and EDC pursuant to Section 4.a and 4.b above for the failure of OTD to comply with the requirements of those Sections, Tthe Developer Agreement wI�-shall terminate, unless the parties agree to an extension of time, with no further obligation or payment of any kind- by Town or EDC to OTD lender, if upon expiration of thirty-six 36) months after the date of Tewti r,,,,, ei appf ra execution of the Developer Agreement (defined above) h �, OTD has failed to timely comply with every term of the Developer Agreement and/or has failed to obtain at least three -(-3)two 2 Certificates of Occupancy for twotlfee (2-3) separaterestaurant sites within thirty-six- (36) months after execution of the Developer Agreement. At which point, provisions IeeaWset forth in -w4h�R-Section 4.b (above) is enacted. — If OTD complies with Sections 4.a, 4.b, 4.c, and 4.d (above), the EDC obligation to OTD shall terminate at the conclusion of a term not to exceed ten (10) years from the date of the executed Developers Agreement by both parties or payment in full of initial pfjp:§�jeprincipal of $1,064,278.25 ( excluding interest), whichever occurs first. notwithstandiniz the Town's rights pursuant to Section 4.c (above). g. Dissolution or Bankruptcy of OTD. If OTD ceases to exist or files for bankruptcy, the EDC shall be excused from making any future payments to OTD's lender, and all agreements shall terminate as allowed by law. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. November 25, 2014 Minutes Page 33 of 57 bah. Force Majeure. OTD may request additional time for compliance of its obligations hereunder based upon good cause for force majeure or other causes of delay as determined acceptable by }Town, EDC and TIRZ #1. 4.5.TIRZ #1 Obligations: ire-TIRZ #1 (the "TIRZ") shall reimburse OTD's lender eligible expenses contingent upon the following conditions: a. Incentive Amount, Term and Public Improvements. OTD shall be eligible for up to $1,000-599,x,000 (excluding interest) for eligible public improvements including, but not limited to, curb and gutter, concrete parking, site lighting, landscaping, public utilities, permit fees, sidewalks, site preparation, engineering and interest carry. OTD shall submit to Town staff proposed public improvements for approval with appropriate bid and invoice documentation. Town staff must approve proposed improvements prior to payment. Additionally, OTD shall comply with all applicable Town development regulations. The TIRZ shall pay to OTD's lender -a percentage rate not to exceed sixty (60) percent of total increment revenue generated from the entire TIRZ #1 for twenty (20) years, or until such time as a maximum amount of $1,000,000 (excluding interest), whichever occurs first. The TIRZ has the right to pay the total principal amount to OTD's lender at any time during the term of the Developer A -agreement without penalty, as well as to make additional principal payments as determined in the sole discretion of TIRZ #1 without prepayment penalty. b. TIRZ First Priority. OTD shall lhave "first priority" of revenue and payment from TIRZ at a percentage rate not to exceed sixty (-'�360-73) ep rcent% of total increment revenue generated from the entire TIRZ#. c. Payment Terms by TIRZ and Certificate of Occupancy Deadlines. TIRZ reimbursement shall occur monthly on a date agreed upon by the parties and as set forth by Section 5.c. No TIRZ payment shall be made to OTD's lender -until such time as a Certificates of Occupancy for two (2) separate restaurants have been obtained by OTD and payment will only be made if both Certificates of Occupancy are issued within twefAy fetifthirty-six (3614) months following the date of T&v. T apps:E) �' execution of the Developer's Agreement by both parties. of Obligation v4th !���36� menths of the date E)f date of Town appf:Ewal- Developef's Agfeeffietit. The Agreement will terminate with no obligation to TIRZ ifx�rty-six€ew (3614) months have passed from the date of execution of -the Developers Agreement and a Certificate of Occupancy for two (2) separate restaurants hass not been issued. Likewise,TIRZ shall November 25, 2014 Minutes Page 34 of 57 WWI 1. Lump Sum Payment. Upon issuance of a Certificate of Occupancy for two (2) separate restaurant sites within thirty-six (36-24) months of the executed Developer Agreement, OTD's lender shall be entitled to a $400,000 payment from the Town as part of the total $1,000,000 TIRZ incentive. The TIRZ shall repay the Town $400,000 from 40% of the total increment revenue generated by the TIRZ, including interest if desired by the Town. The Town shall share "first priority" of revenue and payment with OTD at the designated percentage rates. 2. Performance Payment Reductions. During years 6-20 after the date of the execution of the Developers Agreement, if a restaurant is vacant for a period of twelve (12) months + one (1) day without either one or a combination of the following occurrences: Letter Of Intent, Building Permit, or Certificate of Occupancy, the TIRZ payment shall be reduced by the total proportional contribution to the TIRZ (ad valorem & sales tax) y the former restaurant's highest incremental value generated. For Example, if the restaurant generated $10,000 to the TIRZ and the total TIRZ payment due to OTD was $20,000, then the $20,000 payment would be reduced by $10,000 until Building Permits are filed for new restaurant. Section 5.c.2 is not applicable offee-the $1,000,000 (ewitidin-4 ifftef:est) is paid in ftill to OTD. STEPHEN Sho--�" t4isJ"once the payment is made under Section 5.a or $1,000,000. d_ Termination of Developer Agreement. The Developer Agreement wi44shall terminate with no further payment of any kind by TIRZ to OTD's lender, if at the expiration of thirty-six (36) months after the date of execution of the Developer Agreement by both parties, OTD has failed to timely comply with every term of the Developer Agreement and/or has failed to obtain at least thfeetwo (2) Certificates of Occupancy for twee -two (2{3) separate restaurant sites within thirty-six (36) months after execution of the Developer Agreement. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. e. Dissolution or Bankruutcv of OTD. If OTD ceases to exist or files for bankruptcy, the TIRZ shall be excused from making any future payments to OTD's lender, and all agreements shall terminate as allowed by law. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. November 25, 2014 Minutes Page 35 of 57 1. Lump Sum Payment. Upon issuance of a Certificate of Occupancy for two (2) separate restaurant sites within thirty-six (36-24) months of the executed Developer Agreement, OTD's lender shall be entitled to a $400,000 payment from the Town as part of the total $1,000,000 TIRZ incentive. The TIRZ shall repay the Town $400,000 from 40% of the total increment revenue generated by the TIRZ, including interest if desired by the Town. The Town shall share "first priority" of revenue and payment with OTD at the designated percentage rates. 2. Performance Payment Reductions. During years 6-20 after the date of the execution of the Developers Agreement, if a restaurant is vacant for a period of twelve (12) months + one (1) day without either one or a combination of the following occurrences: Letter Of Intent, Building Permit, or Certificate of Occupancy, the TIRZ payment shall be reduced by the total proportional contribution to the TIRZ (ad valorem & sales tax) y the former restaurant's highest incremental value generated. For Example, if the restaurant generated $10,000 to the TIRZ and the total TIRZ payment due to OTD was $20,000, then the $20,000 payment would be reduced by $10,000 until Building Permits are filed for new restaurant. Section 5.c.2 is not applicable offee-the $1,000,000 (ewitidin-4 ifftef:est) is paid in ftill to OTD. STEPHEN Sho--�" t4isJ"once the payment is made under Section 5.a or $1,000,000. d_ Termination of Developer Agreement. The Developer Agreement wi44shall terminate with no further payment of any kind by TIRZ to OTD's lender, if at the expiration of thirty-six (36) months after the date of execution of the Developer Agreement by both parties, OTD has failed to timely comply with every term of the Developer Agreement and/or has failed to obtain at least thfeetwo (2) Certificates of Occupancy for twee -two (2{3) separate restaurant sites within thirty-six (36) months after execution of the Developer Agreement. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. e. Dissolution or Bankruutcv of OTD. If OTD ceases to exist or files for bankruptcy, the TIRZ shall be excused from making any future payments to OTD's lender, and all agreements shall terminate as allowed by law. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. November 25, 2014 Minutes Page 35 of 57 ATTEST: Mayor, Nick Sanders Town of Trophy Club, Texas Vice President, David Brod EDC -4B, Town of Trophy Club, Texas Chair, David Brod TIRZ #1, Town of Trophy Club, Texas APPROVED AS TO FORM: Town Secretary, Tammy Ard Town Attorney, Patricia A. Adams Town of Trophy Club, Texas Town of Trophy Club, Texas Chris Gordon Justin S Old Town Development, LLC or as assigns Old Town Development, LLC or as assigns November 25, 2014 Minutes Page 36 of 57 i November 25, 2014 Minutes Page 37 of 57 . . . . ......... .... n n . ■ a all I Ozz = .. i November 25, 2014 Minutes Page 37 of 57 ATTACHMENT C Executed Term Sheet November 25, 2014 Minutes Page 38 of 57 TERM SHEET FOR A PUBLIC-PRIVATE PARTNERSHIP Between THE TOWN OF TROPHY CLUB, TEXAS ("TOWN"), TAX INCREMENT FINANCING DISTRICT #1 (TIRZ #1) THE TROPHY CLUB ECONOMIC DEVELOPMENT CORPORATION 4B ("EDC") And OLD TOWN DEVELOPMENT, LLC ("OTD") or as assigns 1. Background: Old Town Development, LLC ("OTD") or as assigns seeks to purchase an approximately 3.37 acre tract of land generally located in the Trophy Wood Plaza project comprised of Lots 1, 2 & 3 (the "Property"). OTD proposes to construct development consisting of two (2) restaurants which will generate ad valorem and sales tax revenue to the Town. 2. Proposed Development and Obligations: OTD proposes to develop the Property in accordance with PD -25 and all other Town ordinances and to timely comply with each of the following development standards for the project (the "Development"): a. Purchase approximately 3.37 acres at 146,797 SF to develop two (2) high quality restaurants as specified below. b. For incentive purposes, the price per acre for the land shall not exceed $7.25/ft for a maximum total purchase price of $1,064,278.25. c. Make all public and private improvements which shall exceed $2,500,000 appraised value in accordance with the time frames set forth below. d. Each restaurant must sign, at minimum, a lease with a 10 year initial term. e. Provide two (2) executed restaurant leases within twenty-four (24) months of the date of the executed Trophy Club Developer Agreement and obtain two (2) Certificates of Occupancy within thirty-six (36) months of executed Trophy Club Developer Agreement. f. OTD shall provide two (2) separate restaurant quarterly gross sales to the Town within ten (10) days following the end of each quarter, if OTD is able to obtain reports from tenants, and shall end upon date of termination of the Developer Agreement. g. Comply with all other requirements set forth below. 3. Estimated Appraised Value, Job Creation, and Gross Sales Generation: The eventual Estimated Appraised Value and Gross Sales production of the Proposed Development is anticipated to be at least $12.8 Million per year within 5 years of receiving their first two Certificates of Occupancy. The estimated property tax and sales tax generation to the Town is estimated to be $250,000 per year within 5 years of receiving both of their first two Certificates of Occupancy. "No guarantees, just an outline ofprojections" 4. EDC Obligations: Pursuant to a Chapter 380 sales tax reimbursement agreement, the EDC will designate a portion of their annual budget to pay OTD's lender an amount not November 25, 2014 Minutes Page 39 of 57 to exceed $1,064,278.25 (purchase price excluding interest) upon OTD's compliance with all conditions set forth in this section. EDC shall have the rights and remedies set forth below, and all payments shall be contingent upon OTD's compliance with each of the following conditions: a. Payment Terms by EDC and Certificate of Occupancy Deadline. Upon OTD's closing on the purchase of the Property and execution of a Developer's Agreement, EDC shall pay OTD's lender monthly payments in the amount of $11,731.08, for a period of twenty-four (24) months with a total payment not to exceed $140,773 to OTD's lender annually which amount is the equivalent of principal and interest for the property purchased. If at the end of the twenty-four (24) month period, OTD has failed to obtain two (2) executed restaurant leases, then Town's obligations thereafter shall terminate and EDC shall have the rights set forth in Section 4.b (below), unless the parties agree to an extension of time. Further, if OTD fails to obtain two (2) Certificates of Occupancy for each of the two (2) separate restaurant sites within thirty-six (36) months after the execution of the Developer Agreement, all obligations of EDC hereunder shall terminate, unless the parties agree to an extension, and EDC shall have the rights set forth in Sections 4.b and 4.f (below). All time periods to obtain Certificates of Occupancy begin on the date upon which the Developer Agreement is executed by the last party signing the Agreement. If at the end of the initial twenty-four (24) month period, OTD has complied with its obligations under this Section, EDC shall make monthly payments through the end of the thirty-six (36) month period. If at the end of the thirty-six (36) month period, OTD has complied with all obligations, EDC will continue with payments to the OTD's lender pursuant to the Developer Agreement for a period of seven (7) additional years. If EDC has exercised its right to purchase the Property pursuant to Section 4.b (below), then EDC shall continue making payments to OTD's lender on its own behalf and OTD shall not be a party or beneficiary thereof, but shall comply with all of its obligations as set forth under Section 4.b (below). b. EDC/Town's Right to Purchase. The right of EDC and/or Town to purchase or require transfer of the Property shall be available at the end of the twenty four (24) month period and again at the end of the thirty-six (36) month period if OTD fails to comply with the requirements of Section 4.a (above). OTD and Town, and EDC, at the sole discretion of the Town and EDC, shall structure the bank financing agreement(s) and Developer Agreement for the Property such that Town or EDC has the right to step into OTD's shoes as the purchaser of the Property and/or OTD is required to transfer title to the Property to the EDC or Town if OTD has failed to comply with its obligations under Section 4.a (above). All payments made by EDC to OTD shall be paid directly to OTD's lender for satisfaction of OTD's loan to purchase the Property. November 25, 2014 Minutes Page 40 of 57 c. Prepayment by EDC. The EDC has the right to pay the total principal amount to OTD's lender at any time during the agreement term without penalty, as well as make additional principal payments without penalty. d. Discretionary Sale by OTD. The Town or EDC shall have the Right of First Refusal if OTD desires to sell the Property with or without infrastructure improvements at any time during the term of the Developer Agreement and until such time as two (2) restaurants have received Certificate of Occupancies. At which point as OTD complies with all of its obligations under Section 4.a (above), neither Town nor EDC will have a right of First Refusal, and should OTD desire to sell the Property, the Town, EDC, and TIRZ #1 shall have the right to reasonably approve any and all future purchasers of the Property during the term of the Developer Agreement. Upon approval by Town, EDC and TIRZ 41 of the proposed purchaser of the Property, Developer Agreement shall be fully transferrable to the approved purchaser. Town, EDC and TIRZ#1 approval shall not be unreasonably withheld. e. Lien Status. The EDC shall hold 2nd lien status, however any such lien status of EDC will be subordinate to lenders position on all phases of development until all required milestones as set forth in Section 4.a (above) and in the Developer Agreement have been met by OTD. E Termination of Developer Agreement. In addition to the rights and remedies provided to Town and EDC pursuant to Section 4.a and 4.b above for the failure of OTD to comply with the requirements of those Sections, the Developer Agreement shall terminate, unless the parties agree to an extension of time, with no further obligation or payment of any kind by Town or EDC to OTD's lender, if upon expiration twenty-four (24) months OTD has failed to provide two (2) separate executed restaurant leases, and if upon the expiration of thirty-six (36) months after the date of execution of the Developer Agreement (defined above), OTD has failed to timely comply with every term of the Developer Agreement or OTD has failed to obtain at least two (2) Certificates of Occupancy for two (2) separate restaurant sites within thirty-six (36) months after execution of the Developer Agreement. At which point, provisions set forth in Section 4.b (above) is enacted. If OTD complies with Sections 4.a, 4.b, 4.c, and 4.d (above), the EDC obligation to OTD shall terminate at the conclusion of a term not to exceed ten (10) years from the date of the executed Developers Agreement by both parties or payment in full of initial principal of $1,064,278.25 (excluding interest), whichever occurs first, notwithstanding the Town's rights pursuant to Section 4.c (above). g. Dissolution or Bankruptcy of OTD. If OTD ceases to exist or files for bankruptcy, the EDC shall be excused from making any future payments to OTD's lender, and all agreements shall terminate as allowed by law. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. November 25, 2014 Minutes Page 41 of 57 h. Force Majeure. OTD may request additional time for compliance of its obligations hereunder based upon good cause for force majeure or other causes of delay as determined acceptable by Town, EDC and TIRZ #1. 5. TIRZ #1 Obligations: TIRZ #1 (the "TIRZ") shall reimburse OTD's lender eligible expenses contingent upon the following conditions: a. Incentive Amount, Term and Public Improvements. OTD shall be eligible for up to $1,000,000 (excluding interest) for eligible public improvements including, but not limited to, curb and gutter, concrete parking, site lighting, landscaping, public utilities, permit fees, sidewalks, site preparation, engineering and interest carry. OTD shall submit to Town staff proposed public improvements for approval with appropriate bid and invoice documentation. Town staff must approve proposed improvements prior to payment. Additionally, OTD shall comply with all applicable Town development regulations. The TIRZ shall pay to OTD's lender a percentage rate not to exceed sixty (60) percent of total increment revenue generated from the entire TIRZ #1 for twenty (20) years, or until such time as a maximum amount of $1,000,000 (excluding interest), whichever occurs first. The TIRZ has the right to pay the total principal amount to OTD's lender at any time during the term of the Developer Agreement without penalty, as well as to make additional principal payments as determined in the sole discretion of TIRZ #I without prepayment penalty. b. TIRZ First Priority. OTD shall have "first priority" of revenue and payment from TIRZ at a percentage rate not to exceed sixty (60) percent of total increment revenue generated from the entire TIRZ. c. Payment Terms by TIRZ and Certificate of Occupancy Deadlines. TIRZ reimbursement shall occur monthly on a date agreed upon by the parties and as set forth by Section 5.c. No TIRZ payment shall be made to OTD's lender until such time as a Certificate of Occupancy for two (2) separate restaurants have been obtained by OTD and payment will only be made if both Certificates of Occupancy are issued within thirty-six (36) months following the date of execution of the Developer's Agreement by both parties. The Agreement will terminate with no obligation to TIRZ if thirty-six (36) months have passed from the date of execution of the Developer Agreement and Certificates of Occupancy for two (2) separate restaurants have not been issued. 1. Lump Sum Payment. Upon issuance of a Certificate of Occupancy for two (2) separate restaurant sites within thirty-six (36) months of the executed Developer Agreement, OTD's lender shall be entitled to a $400,000 payment from the Town as part of the total $1,000,000 TIRZ incentive. The TIRZ shall repay the Town $400,000 from 40% of the total increment revenue generated by the TIRZ, including interest if desired by the Town. The Town November 25, 2014 Minutes Page 42 of 57 shall share "first priority" of revenue and payment with OTD at the designated percentage rates. 2. Performance Payment Reductions. During years 6-20 after the date of the execution of the Developer Agreement, if a restaurant is vacant for a period of twelve (12) months + one (1) day without either one or a combination of the following occurrences: Letter Of Intent, Building Permit, or Certificate of Occupancy, the TIRZ payment shall be reduced by the total proportional contribution to the TIRZ (ad valorem & sales tax) by the former restaurant's highest incremental value generated. For Example, if the restaurant generated $10,000 to the TIRZ and the total TIRZ payment due to OTD was $20,000, then the $20,000 payment would be reduced by $10,000 until Building Permits are filed for new restaurant. Section 5.c.2 is not applicable once the payment is made under Section 5.a or $1,000,000. d. Termination of Developer Agreement. The Developer Agreement shall terminate with no further payment of any kind by TIRZ to OTD's lender, if at the expiration of thirty-six (36) months after the date of execution of the Developer Agreement by both parties, OTD has failed to timely comply with every term of the Developer Agreement and/or has failed to obtain at least two (2) Certificates of Occupancy for two (2) separate restaurant sites within thirty-six (36) months after execution of the Developer Agreement. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. e. Dissolution or Bankruptcy of OTD. If OTD ceases to exist or files for bankruptcy, the TIRZ shall be excused from making any future payments to OTD's lender, and all agreements shall terminate as allowed by law. Notwithstanding the foregoing, Town's rights pursuant to Section 4.b (above), shall survive termination of the Developer's Agreement. . Mayor, Nick Sanders Town of Trophy Club, Texas Vice Presiderit, Da i6 Bro4 EDC -4B, Town of Trophy Club, Texas November 25, 2014 Minutes Page 43 of 57 O- y r, Chair, D vid B o TIRZ #1, Town of Trophy Club, Texas of Trophy Club, LLC or as assigns November 25, 2014 Minutes APPROVED AS TO FORM: 'PdJK,,-IJ Town Attorney, Patricia A. Adams Town of Trophy Club, Texas Ju in Sp ' gfiel Old Development, LLC or as assigns Page 44 of 57 ATTACHMENT D 30th Anniversary Presentation November 25, 2014 Minutes Page 45 of 57 I- LO 0 0 v N m n CD N L N N E N 0 Z W LO } LO 0 L U o o > O IWO 0 o U U O O Ln U -" O 4-p p4� "0O Q 4- 4-� O U N'- -0 O O O cE •� .>_ O 0-0 O 3p (D-0 U CD N L N U 0 0 0 t 0 0 LO LO 0 0 00 v N O O � •� O O �_ n1 �i�/ ,MOO � O p • O O O � N L,-� O US) O)O:5� LO LoCN O � o��}°gyp N JQ o� o o} 6) c o o O o E �U o o o 0 0 0 t 0 0 LO LO 0 0 rn v -0.0� N m U) 0 Z) c v 0 N L N N E N 0 Z r - O U U �.L 0 n� W JQ a� a� U I LU F- V) co W '/ 0 7 k I- LO 0 0 0 LO m 0) m n r m o G E a Vi E W f 41 r i m , u t Lu c b _ c cn • ` y may} (•, � � 0 f6 [rS IG 2 8 F 0 CL I- LO 0 0 0 LO m 0) m n Ji D U 0 L n - W ii a� U i 0 0 co W U Q H 0 J CO cr o LU LL di wA tee, I- LO 0 0 m 0) m n N 7 C v 0 N L N N E m 0 z tj LU F- V) 0 I- LO 0 0 N LO N O) m n 0 D 0 O Q O JQ J 0 I- LO 0 0 Cl) LO m 0) m n CD N L N N E N O z ATTACHMENT E Executed Ordinance 2014-40 November 25, 2014 Minutes Page 55 of 57 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2014-40 AN ORDINANCE OF THE TOWN OF TROPHY CLUB PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM ("TMRS") FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE TOWN OF TROPHY CLUB, AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE. WHEREAS, The Town Council has determined it appropriate to take action to adjust the amount of annuity increase provided as a part of its employee retirement system; and WHEREAS, having reviewed options provided under the TMRS retirement program, the Town Council has determined it necessary and appropriate to adopt this Ordinance. NOW THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Increase in Retirement Annuities. (a) On the terms and conditions set out in Sections 854.203 and 853.404 of Subtitle G of Title 8, Government Code, as amended (hereinafter referred to as the "TMRS Act"), the Town hereby elects to allow and to provide for payment of the increases below stated in monthly benefits payable by the System to retired employees and to beneficiaries of deceased employees of the Town under current service annuities and prior service annuities arising from service by such employees to the Town. An annuity increased under this section replaces any annuity or increased annuity previously granted to the same person. (b) The amount of the annuity increase under this section is computed as the sum of the prior service and current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by 30% of the percentage change in Consumer Price Index for All Urban Consumers, from December of the year immediately preceding the effective date of the person's retirement to the December that is 13 months before the effective date of the increase under this Section. (c) An increase in an annuity that was reduced because of an option selection is reducible in the same proportion and in the same manner that the original annuity was reduced. (d) If a computation hereunder does not result in an increase in the amount of an annuity, the amount of the annuity will not be changed hereunder. (e) The amount by which an increase under this Section exceeds all previously granted increases to an annuitant is an obligation of the Town and of its account in the Benefit Accumulation Fund of the System. Dates of Increases. The initial increase in retirement annuities hereunder shall be effective on January 1, 2015, subject to approval by the Board of Trustees of the System. An increase in retirement annuities shall be made hereunder on January 1 of each subsequent year until this ordinance ceases to be in effect under subsection (e) of Section 853.404 of the TMRS Act, provided that, as to such subsequent year, the actuary for the System has made the determination set forth in subsection (d) of Section 853.404 of the TMRS Act, and provided further that, as to such subsequent year, the City has an ordinance in effect that provides for a simultaneous increase in updated service credits as that term is used in the TMRS Act. ORD 2014-40 Page 1 of 2 November 25, 2014 Minutes Page 56 of 57 EFFECTIVE DATE. This Ordinance shall take effect on November 25, 2014, and it is accordingly so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 25th day of November, 2014. TP C Q �r ATTEST: i T�fnmy Ard, T wn Secretary T n of Trop y Club, Texas ORD 2014-40 C. Nick San ers, Mayor Town of Trophy Club, Texas APPROVED AS TO FORM: T Patricia A. Adams, own Attorney Town of Trophy Club, Texas Page 2 of 2 November 25, 2014 Minutes Page 57 of 57