R-2020-0182 - 7/9/2020RESOLUTION NO. R-2020-0182
WHEREAS, the City of Round Rock ("City") has previously entered into a Memorandum of
Understanding ("MOU") with ICU Medical, Inc. related to the proposed University Boulevard
roadway expansion project, and
WHEREAS, the City and ICU Medical, Inc. wish to amend the MOU, 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 the First
Amended Memorandum of Understanding between ICU Medical, Inc. and City of Round Rock, a copy
of same being attached hereto as Exhibit "A" and incorporated herein for all purposes.
The City Council hereby Ends 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 5 51, Texas Government Code, as amended.
RESOLVED this 9th day of July, 2020.
CRAIG I)4ORGATY,
City of Round Ro ,Texas
FMAWN WO
camUVV L
SARA L. WHITE, City Clerk
0112.20202, 00449203
EXHIBIT
FIR5T AMENDED MEMORANDUM OF UNDER5TANDING
This First Amended Memorandum of Understanding ("MOU ") is made by and between the City of Round
Rock, Texas (the "City") and ICU Medical, Inc., successor -in -interest to ICU Medical Fleet Services, LLC
(formerly known as HoSPI*ra Fleet Services, LLC), a Delaware corporation ("ICU Medical"), and is intended
to modify and replace in all things the previous MOU executed between the parties herein dated October
25, 2018e
RECITALS
WHEREAS, ICU Medical i*s a company with global operations that develops, manufactures, and
sells medical technologies used in vascular therapy, oncology, and critical care applications; and
WHEREAS, ICU Medical owns a parcel of land commonly referred to as 2820 Oakmont Drive,
Round Rock, Texas, as more particularly described on Exhibit "A" attached hereto (the "Property"); and
WHEREAS, ICU Medical conducts certain development, manufacturing, and logistics operations
on the Property; and
WHEREAS, the Ci`ty owns a parcel of land commonly referred to as 2800 Oakmont Drive, Round
Rock, Texas, as more particularly described on Exhibit "B" attached hereto (the "Adjacent Land"), which
is adjacent to the Property; and
11 1*
WHEREAS, the C19 ity is planning a development project (the " Project') in the area surrounding the
Property and the Adjacent Land; and
WHEREAS, in furtherance of the Project, the City desires to acquire an approximately one-half
(1/2) acre portion of the Property in exchange for an equal portion of the Adjacent Land (the "Exchange");
and
WHEREAS, in furtherance of the Project, the City and ICU Medical contemplate that City will
construct certain public roadway connection facility improvements between Oakmont Drive and the
adjacent retail shopping center, generally as shown i*n Exhibit "C" attached hereto ("Oakmont
Connection"); and
WHEREAS, the City is willing to reimburse ICU Medi*cal's costs of exploring and executing the
Exchange, and to otherwise pay for and cause completion of constructing the Oakmont Connection; and
WHEREAS, except as expressly provided herein, the parties acknowledge that the terms and
conditions listed herein are not legally binding against either party, but merely serve as a memorandum of
the current understanding of the parties;
NOW THEREFORE, the City and ICU Medical agree to work cooperatively and in good faith to
draft and approve future agreements and to consummate the Exchange in the manner set forth herein.
1
ARTICLE I
GENERAL SCOPE OF EXCHANGE AND CONSTRUCTION OF OAKMONT CONNECTION
1.01 The Exchange as currently contemplated would involve the City transferring to ICU
Medical an approximately one-half (1/2) acre portion of the Adjacent Land, and ICU Medical
simultaneously transferring to the City (1) an approximately one-half (1/2) acre portion of the Property, and
(2) an approximately 0.167 acre public utility easement across the Property, each as indicated I*n Exhibit
"D" attached hereto. The Exchange would be structured to minimize any negative Internal Revenue Service
tax impacts to ICU Medical, and more specifically to meet the requirements of a simultaneous exchange,
as described in Internal Revenue Code section 103 1, of the real property transferred by ICU Medical for
the real property received from the City.
1.02 The Exchange would require modifications to ICU Medi'cal's current use of the Property
(the "Modifications"), including but not limited to reconfiguration of ICU Medi*cal's loading dock and
parking lot, structural modifications to ICU Medi'cal's warehouse, and construction of the Oakmont
Connection. These improvements will be made to portions of the Property that will be retained by ICU
Medical.
1.03 The final terms of the Exchange would be set forth i*n a definitive land agreement to be
executed by the parties'. with relevant real property transfer instruments to be recorded (collectively, the
"Transfer Documents").
1.04 The parties intend to evaluate and execute the Exchange I*n three phases:
Phase I: Exploratory Phase
Phase II: ConstructIs
ion Phase
Phase III: Transfer Phase
ARTICLE II
ICU MEDICAL INTENTIONS
2*01 During Phase I, ICU Medical intends to explore the costs and feasibility of the
Modifications and the Exchange, including engaging design and engineering experts.
2.02 During Phase II, ICU Medical intends to undertake construction of the Modifications.
2.03 During Phase III, ICU Medical intends to execute the Transfer Documents.
ARTICLE IlI
CITY INTENTIONS
3.01 In consideration of ICU Medical performing as set forth in Article II above, the City intends
to reimburse ICU Medical for its costs of exploring and constructing the Modifications, and for negotiating
and executing the Transfer Documents. For the absence of doubt,, funds received by ICU Medical for
performing as set forth in Article II above are not consideration for the Property, but with respect to the
Modifications are partial compensation for potential cost of cure damage to the remainder property of ICU
Medical resulting from the Project.
2
3.02 To induce ICU Medical to undertake the activities of Phase I, the City will commit to
reimburse ICU Medical for its costs of Phase I, not to exceed Three Hundred One Thousand Dollars
($301,0 00000). City intends to be solely responsible for completion of any signed and sealed design plans
for the Oakmont Connection which shall be sufficient for construction bidding annd letting according to any
applicable rules and requirequirementsof the City's Transportation Department for roadway improvement
40
projects.
3.03 Following Phase I, the parties will work together i*n good faith to establish a scope and
budget for ICU Medical's reimbursable costs of Phase II and Phase III.
3.02 During Phase II, the City intends to construct the Oakmont Connection, and shall undertake
and cause a replat of Oakmont Centre Section 2 in order to reconfigure the Lots to confirm to the Exchange.
3.04 During Phase III, the City intends to execute the Transfer Documents.
3*05 To the extent the Transfer results i*n negative (a) state or local rollback or special
assessment taxes, or (b) Internal Revenue Service tax consequences, to ICU Medical for the taxable year
of the Modifications and/or the Transfer Documents and which directly results from execution of the
Modifications and/or the Transfer Documents, the City intends to reimburse ICU Medical such costs.
106 The City will waive any and all fees for the development and construction of the
Modifications, for any required replat of the Exchange Property, and consummation of the Exchange,
including but not limited to: site and construction permit fees, water and wastewater impact fees, and road
impact fees. The City will also expedite the review and approval of required permits.
107 The City intends to secure all necessary or appropriate approvals from local and state
governing bodies and regulators, including fulfilling statutory notice requirements.
ARTICLE IV
LEGAL EFFECT OF MOU
4e0l This MOU is intended to provide an outline of the current understanding of the parties
hereto, and, except for Section 3.02 herein, 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 actions by the parties.
Executed and effective this day of , 2020.
signature page fo 11ows]
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Exhibit A
The Property
LOT 1, BLOCK A. OAKMONT CENTRE, SECTION TWO, ACCORDING TO MAP OR PLAT
THEREOF RECORDED IN CABINET F. SLIDE 174, OF THE PLAT RECORDS OF WILLIAMSON
COUNTY, TEXAS.
5
Exhibit B
The Adjacent Land
LOT 2, BLOCK A., OAKMONT CENTRE, SECTION TWO, ACCORDING TO MAP OR PLAT
THEREOF RECORDED IN CABINET F SLIDE 174, OF THE PLAT RECORDS OF WILLIAMSON
COUNTY, TEXAS.
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Exhibit C
The Oakmont Connection
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