R-08-12-18-7D2 - 12/18/2008RESOLUTION NO. R -08-12-18-7D2
WHEREAS, the City of Round Rock and Waterstone Development
wish to enter into a Memorandum of Understanding to outline the
mutual intent and understanding of the parties regarding the
proposed City Hall Policy Center, Now Therefore
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS,
That the Mayor is hereby authorized and directed to execute on
behalf of the City a Memorandum of Understanding with Waterstone
Development, a copy of same being attached hereto as Exhibit "A" and
incorporated herein.
The City Council hereby finds and declares that written notice
of the date, hour, place and subject of the meeting at which this
Resolution was adopted was posted and that such meeting was open to
the public as required by law at all times during which this
Resolution and the subject matter hereof were discussed, considered
and formally acted upon, all as required by the Open Meetings Act,
Chapter 551, Texas Government Code, as amended.
RESOLVED this 18th day of December, 2008.
ALAN MCGRAW, Mayor
City of Round Rock, Texas
ATTEST:
21ANtAr (Alca5
SARA L. WHITE, City Secretary
0:\WDOX\RESOLUTI\R81218D2.DOC/rmc
MEMORANDUM OF UNDERSTANDING REGARDING
THE PROPOSED CONSTRUCTION OF THE
ROUND ROCK CITY HALL POLICY CENTER
This Memorandum of Understanding Regarding the Proposed Construction of the Round
Rock City Hall Policy Center ("MOU") is executed by the City of Round Rock ("City") and
Waterstone Development ("WSD") a Texas limited partnership (collectively referred to as "the
Parties") for the purpose of outlining the Parties' mutual intent and understanding with respect to
negotiating one or more agreements whereby the City and WSD will construct the Round Rock
City Hall Policy Center ("City Hall"). Accordingly, the Parties set forth their intent and
understandings as follows:
Recitals
Whereas, the City intends to construct a new City Hall on property it owns near the
intersection of Brown St. and Florence St. in Round Rock, Texas; and
Whereas, while the City has funds available for the construction of approximately
20,000 square feet of building area and associated parking, it is anticipated that the City's need
for additional space will increase during the future; and
Whereas, WSD is a business venture created to finance, construct, occupy, and/or invest
in office and retail property in Round Rock; and
Whereas, WSD has presented a preliminary proposal to the City whereby the City will
own, and WSD will finance, construct, and/or occupy an additional 40,000 square feet of
building area in conjunction with the City Hall; and
Whereas, in order to facilitate the expeditious development of the City Hall, the Parties
desire to outline their respective duties and responsibilities in this MOU; and
Whereas, the Parties recognize that future agreements formalizing the terms set out in
this MOU must be drafted and approved by the City Council and WSD; and
Whereas, the parties acknowledge that the terms and conditions listed herein are not
legally binding against either Party, but merely serve as an outline of the current understanding
of the duties and responsibilities of each Party;
Now Therefore, City and WSD agree to work cooperatively and in good faith to
negotiate future agreements and to develop the City Hall in the manner set forth herein.
00150738.DOC
:1
EXHIBIT
"An
ARTICLE I
General Scope of City Hall
1.01 At this time, it is anticipated that the City Hall will include:
a) approximately 20,000 square feet of office and public space for use as the City
Council Chambers, City offices, meeting space, and public space,
b) approximately 40,000 square feet of additional office and retail space; and
c) adequate parking.
ARTICLE II.
Plans for the City Hall
2.01 City has begun preliminary efforts to design the City Hall. City agrees to continue its
design efforts for the City Hall and to obtain preliminary cost estimates and preliminary designs
for the City Hall. City agrees to keep the WSD fully informed of the cost and design efforts and
to consider WSD's input with respect to such cost and design efforts.
2.02 In anticipation of the possibility of entering into one or more agreements with WSD as
set forth herein, the City agrees to instruct its architects to include an additional 40,000 square
feet of office and retail space into the preliminary design of the City Hall.
2.03 WSD will be responsible for the additional costs associated with the design of the
additional 40,000 square feet of office and retail space and associated parking.
ARTICLE III
Financing and/or Payment for Improvements
3.01 The City acknowledges that it has approximately $7,000,000.00 in voter approved bond
funds to expend on the City Hall. It is expected that this sum of money will fund approximately
20,000 square feet of building area and associated parking. Without obligating WSD, WSD
nevertheless acknowledges that it would be willing to consider funding the cost of the additional
40,000 square feet of office and retail space and associated parking. The parties currently
anticipate that the total cost of the City Hall will be approximately $18,000,000.00.
ARTICLE IV
Timetable
4.01 The Parties intend, and agree to utilize their best efforts to:
a) Complete the financing plan for the City Hall by June 1, 2009;
b) Cause construction of the City Hall to begin by September 1, 2009; and
c) Cause final completion of the City Hall to occur by October 10, 2010.
2
ARTICLE V.
Miscellaneous Provisions
5.01 Good Faith Negotiations. The Parties each understand and acknowledge that this MOU
does not obligate either party in any way. However, each party pledges to continue to negotiate
in good faith to accomplish the mutual goals and interests set forth herein.
5.02 Outline of Terms. The Parties each understand and acknowledge that the terms and
provisions contained herein are only an outline of the terms of the agreements contemplated
herein and the final agreements will contain terms and provisions not covered herein. This MOU
is not intended to legally bind the Parties to the terms and conditions stated herein. The Parties
however, agree that the terms and conditions stated herein are reasonable and provide an outline
for future negotiations and actions by the respective Parties.
Executed this 18th day of December, 2008.
CITY OF ROUND ROCK, TEXAS
By:
Alan McGraw, Mayor
WATERSTONE DEVELOPMENT
By:
Bob Wunsch, its
3
DATE: December 11, 2008
SUBJECT: City Council Meeting — December 18, 2008
ITEM: 7D2. Consider a resolution authorizing the Mayor to execute a Memorandum
of Understanding with Waterstone Development for the City Hall Policy
Center.
Department:
Staff Person:
Justification:
Administration
Jim Nuse, P.E., City Manager
This memorandum of understanding establishes a relationship between the City of Round Rock
and Waterstone Development for the design, construction and operation of the City Hall Policy
Center.
Funding:
Cost: $7,845,000
Source of funds: 2001 GO Bond
Outside Resources: Waterstone Development
Background Information:
Based on informal feedback from the City Council during the programming phase of the City
Hall Policy Center, City staff entered into discussions with Waterstone Development about how
the new policy center might be expanded and enhanced through a public private partnership.
Current funding is sufficient for a facility similar in size and appearance to the McConico
Building. Informal discussions between Council and Staff have made it apparent that there is a
desire to construct the policy center to a higher standard that sets the policy center apart from
the other buildings in the Municipal Office Complex.
Public Comment: N/A
EXECUTED
DOCUMENT
FOLLOWS
MEMORANDUM OF UNDERSTANDING REGARDING
THE PROPOSED CONSTRUCTION OF THE
ROUND ROCK CITY HALL POLICY CENTER
This Memorandum of Understanding Regarding the Proposed Construction of the Round
Rock City Hall Policy Center ("MOU") is executed by the City of Round Rock ("City") and
Waterstone Development ("WSD") a Texas limited partnership (collectively referred to as "the
Parties") for the purpose of outlining the Parties' mutual intent and understanding with respect to
negotiating one or more agreements whereby the City and WSD will construct the Round Rock
City Hall Policy Center ("City Hall"). Accordingly, the Parties set forth their intent and
understandings as follows:
Recitals
Whereas, the City intends to construct a new City Hall on property it owns near the
intersection of Brown St. and Florence St. in Round Rock, Texas; and
Whereas, while the City has funds available for the construction of approximately
20,000 square feet of building area and associated parking, it is anticipated that the City's need
for additional space will increase during the future; and
Whereas, WSD is a business venture created to finance, construct, occupy, and/or invest
in office and retail property in Round Rock; and
Whereas, WSD has presented a preliminary proposal to the City whereby the City will
own, and WSD will finance, construct, and/or occupy an additional 40,000 square feet of
building area in conjunction with the City Hall; and
Whereas, in order to facilitate the expeditious development of the City Hall, the Parties
desire to outline their respective duties and responsibilities in this MOU; and
Whereas, the Parties recognize that future agreements formalizing the terms set out in
this MOU must be drafted and approved by the City Council and WSD; and
Whereas, the parties acknowledge that the terms and conditions listed herein are not
legally binding against either Party, but merely serve as an outline of the current understanding
of the duties and responsibilities of each Party;
Now Therefore, City and WSD agree to work cooperatively and in good faith to
negotiate future agreements and to develop the City Hall in the manner set forth herein.
00150738.DOC
ARTICLE I
General Scope of City Hall
1.01 At this time, it is anticipated that the City Hall will include:
a) approximately 20,000 square feet of office and public space for use as the City
Council Chambers, City offices, meeting space, and public space,
b) approximately 40,000 square feet of additional office and retail space; and
c) adequate parking.
ARTICLE II.
Plans for the City Hall
2.01 City has begun preliminary efforts to design the City Hall. City agrees to continue its
design efforts for the City Hall and to obtain preliminary cost estimates and preliminary designs
for the City Hall. City agrees to keep the WSD fully informed of the cost and design efforts and
to consider WSD's input with respect to such cost and design efforts.
2.02 In anticipation of the possibility of entering into one or more agreements with WSD as
set forth herein, the City agrees to instruct its architects to include an additional 40,000 square
feet of office and retail space into the preliminary design of the City Hall.
2.03 WSD will be responsible for the additional costs associated with the design of the
additional 40,000 square feet of office and retail space and associated parking.
ARTICLE III
Financing and/or Payment for Improvements
3.01 The City acknowledges that it has approximately $7,000,000.00 in voter approved bond
funds to expend on the City Hall. It is expected that this sum of money will fund approximately
20,000 square feet of building area and associated parking. Without obligating WSD, WSD
nevertheless acknowledges that it would be willing to consider funding the cost of the additional
40,000 square feet of office and retail space and associated parking. The
parties currently
anticipate that the total cost of the City Hall will be approximately $18,000,000.00.
ARTICLE IV
Timetable
4.01 The Parties intend, and agree to utilize their best efforts to:
a) Complete the financing plan for the City Hall by June 1, 2009;
b) Cause construction of the City Hall to begin by September 1, 2009; and
c) Cause final completion of the City Hall to occur by October 10, 2010.
2
ARTICLE V.
Miscellaneous Provisions
5.01 Good Faith Negotiations. The Parties each understand and acknowledge that this MOU
does not obligate either party in any way. However, each party pledges to continue to negotiate
in good faith to accomplish the mutual goals and interests set forth herein.
5.02 Outline of Terms. The Parties each understand and acknowledge that the terms and
provisions contained herein are only an outline of the terms of the agreements contemplated
herein and the final agreements will contain terms and provisions not covered herein. This MOU
is not intended to legally bind the Parties to the terms and conditions stated herein. The Parties
however, agree that the terms and conditions stated herein are reasonable and provide an outline
for future negotiations and actions by the respective Parties.
Executed this 18th day of December, 2008.
CITY OF ROUND ROCK, TEXAS
By:
Alan McGraw, Mayor
WATERSTONE DEVELOPMENT
By:
3
7
Bob Wunsch, its � rs;e (-at