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R-85-761 - 9/12/1985sdalini46- 0 .fi 1044m4r edipciamentirbie MARK WHITE GOVERNOR September 26, 1985 Dear Mr. Hazske: RRV:cl Enclosure GOVERNOR'S SMALL BUSINESS REVITALIZATION PROGRAM Mr. Jack Hazske, City Manager City of Round Rock 214 E.Main St. Round Rock, Texas 78664 AUSTIN, TEXAS 78711 Enclosed is the original Economic Development application submitted to the Texas Department of Community Affairs. Two copies were submitted to TDCA by the deadline of September 16 and two more were sent on to Marty Shelton for transmittal to the appropriate Council of Government for their review. If you have any questions on the application or the process, please do not hesitate to call me. I will keep you informed of what is happening during the review process and I wish the City of Round Rock the best of luck. Sin erely, Rosa Rios - Valdez SBR Program Manager P. 0. Box 12728 • 410 East 5th Street • (512) 472-5059 "A joint program of the Governor's Office, the Texas Economic Development Commission and the Texas Department of Community Affairs" MIKE ROBINSON Mayor MIKE HEIUGENSTEIN Mayor Pro-tem COUNCIL MEMBERS GRAHAM HOWELL PETE CORREA RONNIE JEAN CHARLES CULPEPPER TRUDY L LEE JACK A HARZKE City Manager DON WOLF City Attorney DAN R. McNery Municipal Judge THE CITY OF ROUND ROCK 214 E. Main St. • AC 512. 255.3512 • Round Rock, Texas 78884 "000D LIVING WITH A PROUD HERITAGE" I Dear Mr. Quintanilla: September 12, 1985 Rafael Quintanilla, Executive Director Texas Department of Community Affairs 8317 Cross Park Drive P.O. Box 13166, Capital Station Austin, TX 78711 Submitted herewith is a grant application in the amount of $500,000.00 to the Texas Economic Development Project Fund. The City Council and staff of Round Rock whole — heartedly support this application and hope you will consider it favorably. Sincerely, MR /nd enclosure R Mike Robinson Mayor TABLE OF CONTENTS PART I - COVERSHEET 424 /ASSURANCES & CERTIFICATIONS TAB A Cover Sheet - Form 424 1 Assurances 3 Certifications 6 PART II - PROJECT APPROVAL INFORMATION TAB B PART III - PROJECT NARRATIVE TAB C Project Narrative /Needs Assessment Form 21 Project Summary 22 National Program Objective(s) Addresseed 25 Description of Project Activities 32 Economic Development Allocation 33 Minority Employment /Contracting 34 Project Implementation Schedule 39 Administrative Plan 40 PART IV - ATTACHMENTS TAB D Local Resolution 46 Notices of Public Hearing 49 Fair Housing Activities 52 Letter of Job Commitment 61 Letter of Financial Commitment 63 Financial Information 71 COVER SHEET - FORM 4211 TCDP ASSISTANCE L APN• CANT APPLE. CATION a. MUY /CR 1. ,TA7Z APPUCA. DON forme. FIE° 1.009301 TT" L Of ❑ P OUPPUNTION ACTION ❑ N?UCA710N 04 MI- ❑ TMTIf1TJITION Of INTENT (Opt) ❑ wow OF mom ACti • DATE .n F 1 ;S .Sou. I 1. Dm r..... ..31335 4. A331CMA 19 [..a.. ,ate 4. LEGAL APPLCANT /REGIMENT A A9Rllra lose t City of Round Rock LonaalawaR 1 City of Round Rock A muvF.o. a t 214 E.Main St. S. Mgt 1 Round Rock . c .y 1 Williamson I. lido I Ta Texas E• APwa: 78 664 , k Hk • D..0. Pm.. (Na.. Ji k 2 Hall r k gZ City Manager • golonlimm N..) 5 55 i6 9. Slat. Vendor IeentItlullon No. L Pte .. MtfY31R I I I � I I( J DRAT • an. an. C.4 .9) • TITLE p I i 7. TITLE AND DESCRIPTION OF APPUCAN s PROJECT City of Round Rock application to assist Round Rock Partners on a downtown office /retail complex. ' L TYPE OF A -Seal. [ -fut.. 3(00,0 Eu " APPLICANT /RECIPIENT R - fan mood y Moan A[Y.v y F ie i.o 000.u"ea' 1.d.tal.. B-OlM (Ap.oifvl: / F ..c 3 p f pr i ei;I w 9kdkt RM..oves,:"•- 101m .R 9. TYPE OF ASSISTANCE A-9rk gent 0410.4 ,. 11- 4044.4-' 0.nl [ -034, sm.., 01o.n pooh. 4r. -1.1 Er ] 10. AREA OF PROJECT IMPACT ((Ne sm .F alti., ....t4 SW.. .es.) City of Round Rock y 11. ESTIMATED NUM. BEM OF PERSONS SENEFITINO 128 12. TYPE OF APPLICATION Mlw 0.4,4353, [- A14m.natloa ,_,,n.,,i D-0o.u.e.tl.n !rater .yyres.:el. truer (MA 13. PROPOSED 7LENDING 14. CONGRESSIO041. DISTRICTS OF: 23. TYPE OF CNANGE (For 140 or IFS) Increela - Decr.111 f-0tGar (Ay.cJY): �9 W 0 X 0.0. ,.... Omni as N/A • ROW/ R .Do 1. APPUCANT 1. PROJECT • APPLICANT .00 L STAR 500,000 .00 1L 09OJECT START DATE Y w....A 4. 1985 1 1 1 S 17. PMOJEC4 OUMTION 1 0 YeaLL. C -0nullrtiea 4. IACAL •00 Rester .POP-.- Prat. 1010.4.) H� • omRER 1,315,000.M 9 1 .81 5.000 .03 21. pTI 4 000 ATT00 roar ...5 Soo FEDERAL AGENCY M. 19 R5 9 16 19. EXISTING FEDERAL IDENTIFICATION NUMBER I. TOTAL 20. PIDERAL AGENCY TO RECEIVE REQUEST (Noss, City, SSW. SIP .43) Texas Department of Community Affairs 21. REMARKS ADDED a Yet 0 No NM d F 5l a. T. Om b 1 M PP Moal.dd. oad Mild. dm I. ow ....,...ti../...B..0.. " N. ma maNat. IM M.A.° km oe. doh .Maenad M Um 093 -113[ Mb d EM y NMUt 194 ter .-!loot Mill ...at7 00 O. ruched assonant N Os MOM use 1 ala..d. • If requlr.o 07 Tona, CIvII Statutes Article 10110 or 44 3(320 No r,. - Rre Li this application was sdbmltted. our,uant to Instructions therein, •D . ,.Ad to 170,09,lai. Cl.arin9nou,.s and all response, are ••clacned. O) ❑ ❑ co ❑ ❑ (1) ❑ ❑ 4. ;ma NM NU :TTLE • LISRANA 2����,, Mike Robinson, Mayor 71A y Z/ O - ."__ ”4 . . DATE SICAL^ 01 :. ,• 333c3.1 A v SA. .)5()CT YAMS Texts Department of Community Affair. 07. APPt.3l. J„e 0003333 a. RECEIVED 19 2L ORGANIZATIONAL UNIT I Texas Community Development Program 27. ADMINISTRATIVE OFFICE CATION 20. IDETNTIfIm -COP CATI APPUON 2 !. ADDRESS Box 13186, Austin. Tom 78711 D 10. TCDP GRANT IDENTIFICATION 21. ACTION TAKEN W ri 0 a AMMO 0 R 31)00013 H i 0 • MIMED POE AYE20MD(T i p 4. DOORED e. mown: 11. FUNDING Few .,en)A 4. 13. ACTION DATER. '19 34. r_r se.e1 4, 8TAMTINO DATE 19 • MUM. 3 .00 1. APPLICANT .00 30. CONTACT FOR ADDITIONAL TION IN... and M4ywn. INFORAI4. numb..) 31. Year .wu 4r ENDING DATE 19 .. STAR .00 d. LOUL .00 • 37. REMARKS ADDED ❑ Yo ONe . DRAG J)0 rTom Tom E oo 3i. FEDERAL AGENCY A-90 ACTION ocammin 1494 meaty m .mw le des miler arww.a, of M 1. " 003 004,. M R W /... r Y Wag um1. , a (EDERAL 4 [ s .1. � A'CIAL PART I COVER SHEET -- FORM 424 Form Approved MB No 25060043 STANDARD FORM 424 PAGE 1 (10-71) P,.wnJ.d M GJA. F.Lr.1 M....rm0t 04.o4., 74-7 SECTION IV- REMARKS fPk.e rrA7str ,Arproper u... owwhr/ro% Sntiws L f! r f!!.(/wham' 4.H Mr. Jack Harzke City Manager City of Round Rock Phone: 255 -3612 Mr. Sam Huey Asst. City Manager City of Round Rock Phone: 255 -3612 10. Project will impact a designated blighted area located in downtown Round Rock. 11. Jobs impact reflect 58 construction and landscape positions; 60 new jobs to be created by office and retail tenants, and 10 job retentions. 16. Construction will start 30 days after contract is awarded. ASSURANCES ASSURANCES The applicant hereby enures and certifies that he will comply with the r9 lstions, policies, guidelines and r*quiremahb, Including Offs of Management and Budget Ckculen Noe 0,17, A•95, and A•102, as they reins to to application, sseptwha ad use of Federal funds for this ledereReenined project Also, the appiie411 g ive mu-no rd weblrs with ntpect to the r ant Mat: 1. 11 poises Ill autherky to apply for the Fwd. and to conducting inspection to Inman compliance with then risen and construct the proposed facilities; Net a mole• spadfistwru by the contractor. tlot, motion or similar action has been duly adopted or B. ft will cause work on the project to be commenced with Palled as en official at 01 to applicant's preming body. In a rssonable time *her receipt of notification from the eNhor1ziry the filing 01 the application. Incl dire all under. apposing Fedral agency Nat herds here been approved sardine and awurance contained therein, and directing and that the project w111 be prosecuted to completion with and 'Sharking We penon Identified r the official rupee nuwsebla diligence. eentethe of the applicnt to an In nbrrheeuon with the 10. It will not depose of or *cumber lu tide or other tpplkalion and to provide such additional Information r interests M the site and facilities during the period of Fed• my be requkd. oral interest w while the Go rivn*lt holds bone! which. 2. h wile comply with the provision el: Executive Order ern Is the longer. 11206, relating to evaluation of Rood !surds, cud Exaar i1. It will comply with Tide VI of the Civil Rights Act of the Order 11266, relating to the prevention, control, and 1964 ( ►.1„ 96 and In accordance with Title VI of that ehesenent of water pollution AR no person in Ps United Stites shell, on the ground of 7. I1a411 have efficient lands avatlabk to mart the nor- ran, color, or netronl origin, be excluded from psrticipe Federal then of the cost la construction projects. Suffi. yon in be denied the benefits of, or be othenwlse subjected chant funds will be available w construction is cam' to discrimination under any pro7am or activity for which *Ind n sumo effective apention and maintenance of the the applicant receives Federal financial entttncce end will ' yeasty for the purposes constructed. kmnediably take any messes necessary to effectuate this 4. h wet obtain approval by the appropriate Federal agreement If any nal property or strums thereon Is wo- e/mot of the final working dmrings and specifcetion be sided or Snood with the aid of Federal hernial mit fore the project is *dvenised or plaid on the market for terra extended to the Applicant. this assurance cell obit Wedding: tat it *Hl construct the project, or mute It to be t1b the Applicant or in the case 01 any tram/01 01 w1ch contracted, to fast completion in axordens with the property, any transfers, for the period during which is appliunion and approved plan end 'metric/dons; the It nal property or structure is used for 1 purpose for which will admit to the appropriate Floral agency for prior ape- the Federal Irnnciel mistaro k extended or for another ewe thence that alter the cab of the project use of purpos involving the provision of similar services or bees 'pace, or functional tryout: that it will not enter Into a 9e contrtction cantraetlt) for the project or urderoke other 12. 11 will establish efegue ds to prohibit employee' from ctIltin until the condition of the construction grant pro using their positions fora purpose that k or give the w gusts) has been met. , poems of being motivated by a desire for private gain for 1L It will prork% and maintain compeamt and adequate themselves or others, paniculerly those with whom they adducerst engineering supervision ad inspection x1 the here family, business, or other tea instruction site to Saxe the the completed work con- 13. It will comply with the requirements or Title 11 and tonne with the approved plan and epecIficeion: that it Title 111 of the Uniform Ralocation Anthem* and Rsl will fumkh proves reports and wide other Information es Property Acquisition Act of 1970 (►.L 91416) which the Felon! voter agency may require. provides for fair and equitable treatment of person die t 1t vin operate and maintain the facility In aaondana gamed as a noun of FedanI and federally mind pep with the minimum standards r any be requked c pee I ' by the applleabla Fedwel. Sub and local 'packs 14. It will comply with all ruqulr*menb knposed by the tor the meinsenane and tdpwation of ad" hellitiaa Federal grantor agency soncwning special requtnmenb of 7. h win the w' ghee e venter pansy and the Comptroller Gar la. peogram nquinmenb. cud other adminiotra eve re- te a NouM. coy autmsked onmeentetive amm t aed the quiremenb approvd in 'cadence with Office of Menges .W.1 to aaaenIne aH meads, books. poPwt, a dxvmnb mot end Budget Circular No. A•102. related to the grant 15. It will comply with the provilons of the Hatch Act l it will require the bc9hy to be desired to comply with which limit the political .cushy of employee. Is "American Standard Specification for Making Build- 16. It will comply with the minimum wept and maximum Inc end Facilities Anaadbls m. old debit by. to ►hysl boon provision of the Federal Fair Labor Standards Act, 0fly 14ndkppsd," Number A117.1.1961, s modifrd 141 es they apply to hospital and durational Institution em- CFR 10117.703). The applicant will be nepondbb for pbyees of Sub and local g vemmenta -3- ASSURANCES CONTINUED 17. It will insure that the facilities under its ownership, lease or supervision which shall be utilized in the accomplishment of the project are not listed on the Environmental Protection Agency's (EPA) list of Violating Facilities and that it will notify the Federal grantor agency of the receipt of any communication from the Director of the EPA Office of Federal Activities indicating that a facility to be utilized dA in the project is under consideration.for listing by th 18. It will comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection ct f 3l, 1973, Public Law 93 -234, 87 Stat. 975,.app tect December 1976. Section 102(a) requires, on and after March 2, 1975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any Federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. The phase "Federal financial asisstance" includes any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any other form of direct or indirect Federal assistance. 19. It will assist the Federal grantor agency in its compliance with Section 106 of the National Historic Preservation Act of 1966 as amended (16 U.S.C. 470), Executive Order 11593, and the Archeological and Historic Preservation Act of 1966 (16 U.S.C. 469a et seq.) by (a) consulting with the State Historic Preservation Officer on the conduct of investigations, as necessary, to identify properties listed in or eligible for inclusion in the National Register of Historic 8008 that e activity, and notifying effects 36 Federal 36 CFR Part 800..8) ) by th grantor agency of the existence of any such properties, and by (b) complying with all requirements established by the Federal grantor agency'to avoid or mitigate adverse effects upon such properties. 20. (a) "It will comply with Texas Civil Statutes, Article 5996a, by insuring that no officer, employee, or member of the applicant's governing body or of the applicant's contractor shall vote or confirm the employment of any person related within the second degree by affinity or third degree by consanguinity to any member of the govern- ing body or to any other officer. or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employ- ment of a person who shall have been continuously employed for a period of two years prior to the election or appointment of the officer, employee, or governing body member related to such person in the prohibited degree." (b) "It will insure that all information collected, assembled or maintained by the applicant relative to this project shall be avail- able to the public during normal business hours in compliance with Texas Civil Statutes, Article 6252 -17a, unless otherwise expressly provided by law." (c) which requires all regular, special, or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution." "It will comply with Texas Civil Statutes, Article 6252 -17, CERTIFICATIONS CER11F1CA1ION 1, __Mike.Robinson_____ _ 1111.1 Mayor_ C ty_of Round Rock /Williamson ClIY /COUNTY CERTIFY, WITH RESPECT TO THE EXPENDITURE OF TEXAS COMMUNITY DEVELOPMENT PROGRAM BY THE City o£ Round Rock /Williamson , THAI: CI1Y /COUNTY (1) If WILL MINIMIZE DISPLACEMENT OF PERSONS AS A RESULT OF ACTIVITIES ASSISTED WITH SUCH 1CDP FUNDS. (2) 1HE PROGRAM WILL BE CONDUCTED AND ADMINISTERED IN CONFORMITY WITH PUBLIC LAW 88 -352 AND PUBLIC LAW 90 -284, AND THAT IT WILL AFFIRMATIVELY FURTHER FAIR HOUSING: AS SPECIFIED BY THE TEXAS DEPARTMENT OF COMMUNITY AFFAIRS. (3) 11 WILL PROVIDE FOR OPPORTUNITIES FOR CIIILEN PARTICIPATION, HEARINGS AND ACCESS TO INFORMATION WITH RESPECT 10 11S COMMUNITY DEVELOPMENT PROGRAMS AS SPECIFIED BY THE DEPARIMENI. (4) IT WILL NOT ATTEMPT TO RECOVER ANY CAPITAL COSTS OF PUBLIC IMPROVEMENTS ASSISTED IN WHOLE OR IN PART WIIH TCDP FUNDS BY ASSESSING ANY AMOUNT AGAINST PROPERTIES OWNED AND OCCUPIED BY PERSONS OF LOW AND MODERATE INCOME, INCLUDING ANY FEE CHARGED OR ASSESSMENT MADE AS A CONDITION OF OBTAINING ACCESS TO SUCH PUBLIC IMPROVEMENTS UNLESS (A) TCDP FUNDS ARE USED TO PAY THE PROPORTION OF SUCH FEE OR ASSESSMENT THAT RELATED 10 THE CAPITAL COSTS OF SUCH PUBLIC IMPROVEMENTS THAT ARE FINANCED FROM REVENUE SOURCES OTHER THAN TCDP FUNDS: OR (B) FOR PURPOSES OF ASSESSING ANY AMOUNT AGAINST PROPERTIES OWNED AND OCCUPIED BY PERSONS OF LOW AND MODERATE INCOME WHO ARE NO1 PERSONS OF VERY LOW INCOME, THE UNIT OF GENERAL LOCAL. GOVERNMENT CERTIFIES THAT 11 LACKS SUFFICIENT TCDP FUNDS 10 COMPLY WITH THE REQUIREMENTS OF CLAUSE (A). SIGNATURE 2 DAIL Item 1. oe�is assistance request require State, local, regional, or other priority rating? Yes No Item 3. Does this assistance request require clearinghouse review per Executive Order 12372, and as provided for in Articles 1011m and 4413(32a), Vernon's Civil Statutes. Yes - No N/A Item 4. Does..this assistance request require ipSta.te, regional or other planning' approval? Yes No_ PART II - SECTION A PROJECT APPROVAL INFORMATION Name of Governing Body: Priority Rating Item 2. Does t is assistance request require Name of Agency or Board: State, or local advisory clearance? TCDP Regional Review Committee (NOTE: Regional Review Committee review is optional) Yes )■ No (Attach Documentation) (Attach Comments) Capital Area Planning Council Name of Approving Agency Date: Item 5. Is the proposed project covered by an Check One: State approved comprehensive plan? Local X Regional Yes. No Location of Plan: City of Round Rock Round Rock Frontiers: A Development Guide Item 6. Wi the assistance requested serve or be located on a Federal installation? Yes No X Item 7. Will the assistance requested have any negative impact(s) or effect(s) on the environment? Yes No 1 ( Item 8. Will the assistance requested cause Number of: the displacement of individuals, Individuals: families, businesses, or farms? Families: Businesses Yes No Farms Item 9. Is there other related financial assistance on this project (previous, pending, or anticipated) Yes No Item 10. . Is the project in a designated flood hazard area? Yes No Item 11. Did the; applicant contact other'state or,federal,,funding sources prior to ,making application for TCDP funds? UDAG SBA If yes, what was the outCOme? An Inducement Resolution for Industrial Revenue Bond finance has been secured. If no, why was contact not made? —B— Name of Federal Installation: Location of Federal Land: Percent of Project: Note: All applicants funded will have to comply with federal regulations regarding environmental clearance before funds are released. Private financing for $1,315,000 from a lending institution is anticipated. FmliA OtherR3's 1. SITES AND IMPROVEMENTS 1001requrred X Attached as exhibits Applicard intends 10 acquue the site (hough' Eminent domain Negotiated purchase X Other means (specdyy�Land transfer land ¢wan 1. TITLE OR OTHER INTEREST IN THE SITE IS OR WILL BE VESTED IN. Applicant. Agency or institution operating the facility. X Other, (specify) Round Rock Partners 3. INDICATE WHETHER APPLICANT OPERATOR HAS: X • Fee simple title Leasehoki mlerest Otter (specify) L. IF APPLICANT 'OPERATOR HAS LEASEHOLD INTEREST. GIVE THE FOLLOWING INFORMATION: a. Length d lease m other estate interest end number of years to run b. Is lease renewable Yes No „ c. Current appraised value 01 lard S r d. Annual rental rate 5 5. ATTACH AN OPINION FROM ACCEPTABLE TITLE COUNSEL DESCRIBING THE INTEREST APPLICANT'OPERATOR HAS IN THE SITE AND CERTIFYING THAT THE ESTATE OR INTEREST IS LEGAL AND VALID. 5. WHERE APPLICABLE. ATTACH SITE SURVEY, SOIL INVESTIGATION REPORTS *NO COPIES OF LAND APPRAISALS. 7. WHERE APPLICABLE, ATTACH CERTIFICATION FROM ARCHITECT ON THE FEASIBILITY OF IMPROVING EXISTING SITE TOPOGRAPHY. B. ATTACH PLOT PLAN 9. CONSTRUCTION SCHEDULE ESTIMATES' N01 required X Being peparen ' Attached as exhibits Pe:tentage oI completion o1 drawings and specificalions'at application date' . Schematics X ,,.. 1 . .Preliminary , e Final . 10. TARGET DATES FOR -r, Bid Advedisemenl ._ November 1985 . .._ _ Contract Award December 1985 ' Consliuction Completion _ August_ .1986 - .v Occupaky September 1986 11f+DE5CRIPTION OF FACILITY , Not requrred' ° ° -- X ^' 'v‘ Attached as exhibits Drawings - Attach any drawings which will assist m describing the protect. Specifications - Attach copies of completed outline specification. (II drawings and spec licaliOns have not been fully completed, please attach copies or working drawings That have been completed.) INSTRUCTION PART II — SECTION B NOTE 11E5E5 04 1411 04[11 54 slur -9- • 14 00 1•a110C1100a ••1 0.505■101. Mr. Mike Robinson, Mayor Members of the City Council Round Rock, Texas ROUND ROCK PARTNERS 9417 Great Hills Trail #2026 Austin, Texas 78759 (512)343 - 1274 September 11, 1985 Re: Application for Economic Development Grant Dear Mayor and Members of the Round Rock City Council: As you know Round Rock Partners has proposed a mixed -use development for the downtown area. Although our development will be located in a designated blighted area, we feel confident that a development such as ours, coupled with the City's efforts and foresight, will re- create a viable and vibrant central business district that has been lacking in Round Rock to date. Although the Mayor and Council are to be commended for the growth experienced within the City, the City on the whole has suffered from urban sprawl and has left the downtown area impoverished and in a delapadated state. Our proposed development is projected to create several new jobs both in the construction stage and after project completion date. We envision approximately 58 construction jobs to be filled as soon as the ground is broken. When completed, we project 70 jobs to be created with 60 of these jobs being filled by low to moderate income groups who will work as shop assistants, waitpersons or clerical staff within the project. Due to the innovative nature of this development we view our project as the catalist to propell other area property owners and investors to rehabilitate existing structures or construct new facilities that will in total create a new central business district that will project the thoughtful yet progressive style of Round Rock. -10- As innovative as our project is we are confident of its long -term success, however, we are concerned about its short -term financial goals. Based upon cost and cash flow projections, should we use Industrial Revenue Bonds the rate of return on costs will be less than 3% during the first 3 to 5 years of the project. Therefore, we strongly urge the City to apply for an Economic Development Grant in the amount of $500,000 to be applied to this project. These grant monies will increase the rate of return dramatically and thereby provide the incentive that Round Rock Partners needs to move forward with the project. Thank you for your time and consideration in this matter. Respectively, Mart Shelton Round Rock Partners / ||T ||| I- | |||U /|/LLL s /U |U AMMON �� : � ����. '__ coma _..��~~ � .� 4 1 , S ews718 TONK WA SPRINGS s O 0 .,- SR ADOWBROOK GREL HIL PAM EL HEI IT JSHY EEK PITH Cy, t2 L _J RO D GAT GEyILLE TIT EST ILLSI AIN N. Greater Austin INCH EQUALS . , /in NILES . 1904 EDITION 0 1982 Continental Map Inc STATE OF TEXAS RESOLUTION CONCERNING MEMORANDUM OF AGREEMENT WITH ROUND ROCK PARTNERS ON CITY HALL COMPLEX COUNTY OF WILLIAMSON WHEREAS, the need for additional space for the operations of the City of Round Rock is critical and such needs will continue to grow as the City expands in future years; and WHEREAS, Round Rock Partners has proposed to provide said space on advantageous terms and conditions to satisfy the future needs of the City of Round Rock; and WHEREAS, said arrangement will allow the City to avoid issuing bonds or go into debt to construct said space; and WHEREAS, said parties now desire to document their agreement concerning the development of a City Hall complex; and 4 WHEREAS, said ,agreement includes the eventual construction of 4 buildings and a parking garage in downtown Round Rock; and WHEREAS, the goal to be accomplished by both parties can best be done by the exchange of certain land owned by the City with land owned by Round Rock Partners; WHEREAS, said exchange will be accompanied with a simultaneous execution by the City of a lease of office space in the first building to be constructed by Round Rock Partners to be built on the land acquired from the City; and WHEREAS, said transaction will also include the option in the City to lease additional facilities and purchase certain of the aforementioned facilities at a fixed price; and WHEREAS, the general terms of said agreement between the parties are as described on the attached Memorandum of Agreement; NOW THEREFORE, BE IT RESOLVED BY THE CITY OF ROUND ROCK, TEXAS THAT: 1. The City of Round Rock hereby agrees in principle to the terms of an agreement with Round Rock Partners, the details of said agreement to be as described in the Memorandum of Agreement attached hereto. 2. The Mayor of the City of Round Rock, Texas is hereby authorized to execute said Memorandum of Agreement pursuant to the terms of this Resolution. 3. The terms and conditions of the Lease Agreement between the City of Round Rock and Round Rock Partners are still to be negotiated and said lease and other final documents will be executed at a later date, however the City hereby agrees to proceed with the transaction as described herein. 4. That the City Secretary is hereby directed to file a copy of this Resolution in the permanent records of her office. -15- 1985. ATTEST: APPROVED this dotes day of E LAND, City Secretary -16- 6 • 1 MIKE ROBTNSON, Mayor City of Round Rock, Texas 1 -k -1 MEMORANDUM OF AGREEMENT This Memorandum of Agreement is entered into on this day of , 1985, by and between the Cty of Round R ck, Texas, a municipal corporation ( "City ") and Round Rock Partners, a Colorado General Partnership composed of Paul R. Cronk and Charles Schreiner Nelson, general partners ( "Partners "). This document is intended to outline and document the basis of certain agreements reached by the parties hereto. It is understood and agreed that a more formal written document, specifically as it relates to certain leases and a land exchange to be executed by the parties, will follow at a later date. The parties hereto now agree as follows: 1. The City now owns lots 13 through 19 of Block 10 of the City of Round Rock. Partners now owns Lots 1 through 5 of said Block 10. The City also has an option to purchase' Lot 6 through 10 of said Block 10. Upon execution of the lease contemplated herein, City will proceed to acquire legal title to said Lots 6 through 10. 2. Upon consummation of all transactions contemplated hereunder, the City will exchange Lots 17, 18 and 19 to Partners in exchange for Lots 1 through 5, inclusive. Lots 17, 18 and 19 have an area of approximately 11,250 square feet, and Lots 1 through 5, inclusive have an area of approximately 16,875 square feet. 3. The City and Partners will cooperate to immediately vacate approximately the easterly 210 feet of the alley of said Block 10. Upon vacation, adjoining property owners will own said property to the center line of the alley. 4. Simultaneous with said exchange, all land then owned by City in Block 10 will be leased to Partners for a period to coincide with the life of the bonds or other financing on the project plus five years at a lease rate of $10.00 per year. If City ever fails to renew any of its leases upon said property, said ground lease to Partners shall revert to a 99 year lease from the date of the original ground lease. City shall have the right to continue to use all structures currently existing on said Block 10 until such time as said structures are to be demolished as described on the proposed development schedule (see Appendix A) . 5. It is the intent of both City and Partners that the entire Block 10 (with the exception of the Nelson Hardware Building already existing) be developed by Round Rock Partners according to the schedule described on Appendix A. Said plan provides for the building of 4 buildings, being 3 office /retail buildings of 2 to 3 stories, and a city council chamber, as well as a parking garage with drive -up facilities for payment of city bills and assessments. The intent of development is to provide for an orderly and timely expansion of space for the City as well as providing space for retail merchants and professional offices in the downtown area. 6. A Council subcommittee shall be allowed input into the overall design of the complex, and will be given final design approval, which approval will not be unreasonably withheld. Said complex shall be designed and built in a quality manner and in keeping with the historic nature of downtown Round Rock and its existing buildings, but at the lowest reasonable cost. The size of all buildings on the aforementioned property will be compatible with the proposed site plan attached hereto as Appendix B. -171- 7. City agrees to cooperate with Partners on all zoning and building code matters necessary to effectuate this agreement. 8. Subject to final negotiation of the parties as to the exact terms, City will sign a lease on Building A (see the attached description of buildings designated Appendix B). Such agreement will also include City's agreement to pay its proportionate share of debt service on common area facilities and on the parking garage. Said proportionate share will be calculated based upon the rentable space obligated to the City by lease and the rentable space built and leasable by Partners in the open market. Said lease by the City will have a base net rental equal to the debt service attributable to the square feet rented to the City. In addition to said base rent, the City will pay its proportionate share of all building, garage, and common area operating expenses including, but not limited to, charges for utilities, maintenance, insurance, and management. The lease to be executed by the City on Building A will be for a one year term; however, it is the understanding of the parties hereto that City intend such lease to continue for a minimum of ten (10) years. 9. Simultaneous with the execution of this lease, City and Partners will execute an option granting City the option to acquire Building A and proportionate share of parking garage and common areas at any time after final construction and occupancy. Such property may be acquired at a price equal to the then outstanding debt attributable to Building A and proportionate share of the parking garage and common areas. 10. (a) Building C, as shown on the attached Appendix, may likewise be acquired by City under option for a price equal to the then outstanding debt attributable to Building C. Based upon the completed space studies, it is expected that such property will be leased by the City in 1990. It is the present intent of the parties that Building C will be constructed immediately upon vacation of the existing City Hall Annex. It is hoped that said completion of Building C will be in early 1987. Because said Building C can be acquired by the City at any time for the outstanding debt, plus proportionate share of parking garage and common areas, Partners cannot take the risk of constructing and leasing said building prior to the City's expansion unless and until Partners is thoroughly satisfied the building can be timely leased in the open market prior to City's eventual occupancy. If Partners determines to construct Building C prior to the execution of a lease with City and /or acquisition by City, Partners may do so. In such event Partners will be liable for any debt on Building C and the proportionate share for common area and parking garage, but any profits generated out of that Building by Partners will belong to Partners. (b) If the City needs the expansion space of Building C prior to Partners willingness to construct, and if City desires to lease rather than acquire, City may choose to commence the development of that property. Should City choose Partners to develop Building C, Partners would be entitled to a development fee. In such event City agrees to lease the entire building and bear its proportionate share of debt service on the common area and parking garage and thereby acquire the opportunity to rent unused space to other tenants. Should City master lease Building C from Partners, any space subleased by City shall be at market rate as determined by the parties hereto or by an independent appraiser. Partners agrees to assist the City if requested to lease any excess space, and Partners will be paid a leasing fee for this service; however, City shall receive all profits generated by said sublease agreements. -18- (c) In order to protect the interest of City, should City not be satisfied with the performance of Partners in development of this property, City may choose another developer to construct Building C. If City chooses to use another developer, City must deliver written notice to Partners that the work of Partners is not satisfactory within 2 months after the completion of Building A or prior to Partners commencing the construction of Building C. Said notice shall state in detail the reasons why such work was not satisfactory. If said notice is not delivered within said time period, the option of City to use another developer for Building C will be waived. If City does exercise said option to use another developer, the ground lease to the extent it covers the building foot print for Building C, as shown on Appendix B, will be terminated immediately. Any costs incurred by Partners and attributable to such Building C will be reimbursed by City immediately upon said ground lease termination. City agrees that, if built by another developer, Building C shall be built in conformance with the original plans and specifications, and that quality workmanship will be used throughout said building. City shall be liable for the debt service of Building C and the appropriate proportionate share of common area and parking garage. 11. Building D will be built and leased to the City upon City exercising its option for Building D to be constructed. It is the present intent of the parties that Building D will be completed by March, 1987. The City will also have an option to purchase Building D identical to that for Building C and Building A along with its appropriate share of the parking garage and common areas. 12. Financing of the project will be arranged by Partners. Because City's lease payments are based upon the debt service payments on the buildings, City shall have the right of approval of any financing which will provide for an interest rate of greater than 9 1/2 %, and any term shorter than a ten year term amortized over 25 years. It is presently anticipated that such financing will be by method of industrial revenue bonds, and the user of those funds will be the Partners. 13. City shall be entitled to purchase from Partners Buildings A, C, and /or D plus the appropriate proportionate' share of the parking garage and common areas at any time. It is stipulated and agreed that the purchase price for said buildings shall be the then outstanding debt on the facility and said proportionate debt on common facilities. 14. City shall be given the first right to purchase Building B. The exact terms of said preferential right to purchase shall be determined by the parties at the time of execution of the lease described herein; however, City shall not be given longer than 90 days to exercise any preferential right to purchase after notification by Partners. 15. Any future expansion of the parking garage to be constructed pursuant to this agreement, shall be made by the City at the City's expense. It is agreed that the parking garage will be designed so that expansion will be structurally possible. 16. It is understood by the parties hereto that any space acquired, leased, or constructed by City may be leased by City to non -city tenants; however, City hereby agrees that any leasing of said City leased space to non -city tenants shall be at fair market value as determined by the parties hereto at the time of lease between City and -19- non -city tenants. If any dispute arises between City and Partners as to said market value, it shall be as determined by independent appraisal. 17. This agreement shall be executed by Partners on or before ten (10) days after execution by City. If not so executed, this agreement of City shall terminate. ATTEST: EXECUTED this acv end, E LAND, City Secretary 3 day of 4 YT , 1985. MIKE ROBINSON, Mayor City of Round Rock, Texas EXECUTED this day of ;.14 , 1985. ROUND ROCK PARTNERS BY: PAUL R. CRONK, General Partner PROJECT NARRATIVE /NEEDS ASSESSMENT FORM 1. Briefly describe the serious and basic housing needs: Affordable Housing is not available for most of our elderly and minority population. A large segment of our existing housing stock is in need of substantial rehabilitation. 2. Briefly describe and document the serious and basic economic development needs: High land and development costs make it difficult for small businesses to start in the area. PART III CITY OF ROiN ROCK (App scant) A. PROJECT NARRATIVE NEEDS ASSESSMENT FORM State of Texas Texas Community Development Program 3. Briefly describe the serious and basic public facilities needs: Although water and wastewater service is available to most of the community, adequate fire flows in the older section of town do not meet required standards. Lack,of curb's and gutters also contribute to localized drainage problems. 4. Briefly describe the other 'serious and basic needs: Low priced day care facilities are not available for low income working parents. A community center large enough to house city wide events is not available. NEEDS DETERMINED BY: 1) PUBLIC HEARING o 2) COMMUNITY SURVEY o 3) EXISTING STUDIES ffi 4) OTHER 0 — DATE OF ASSESSMENT: September 9, 1985 PROJECT SUMMARY Community Needs Assessment PROJECT SUMMARY The City of Round Rock is a rapidly growing central Texas community that has been recently experiencing a doubling of its population every five years. As a result of the city's new population expansion, Round Rock has been able to service new development areas. However, the older sections of downtown are lacking adequate fire water flows, curbs and gutters and a large segment of the City's existing housing stock needs substantial rehabilitation. Commercial development in the City of Round Rock has occurred most recently along Interstate Highway 35. With -in the last four years, the downtown commercial district experienced some improvements in building restorations and facade renovations. Yet the need exists for more varied commercial development that will allow for a mixed use of retail shops and professional offices to revitalize the inner city and encourage downtown customer activity. Economic development of our inner city has been a priority of Council and the City supports the use of industrial revenue bonds to serve as incentives for a downtown revitalization effort. Round Rock, because of its proximity to Austin, has attracted major employers into its ETJ. These successful industry locations have had their economic set backs in that just a few months ago, Applied Micro Memories dismissed 125 local residents. B J. Hughs, another major Round Rock employer experienced temporary lay -offs of several employees due to production out backs. Westinghouse, in efforts to retain its present work force, is offering an extended work week to its employees to prevent lay -offs. Round Rock officials and Chamber of Commerce leaders recognize that the economic growth of its major employers has stagnated and in some cases declined. This issue requires local leaders to be just as concerned if not more concerned with the expansion needs of its smaller businesses and the development of a downtown revitalization effort that will foster opportunities to smaller local merchants. The only viable solution to this need is one which has been offered by Round Rock Partners in its proposed plan to build a commercial office /retail complex. _22_ Protect Description Round Rock Partners, a Colorado General Partnership consisting of Paul R. Cronk and Charles Schreiner Nelson individually, propose to design and develop a retail and professional office building to be located in downtown Round Rock, Texas on the southeast corner of Main Street and Sheppard Street. This building will be referred to in renderings and legal documents as Building B. Building B will contain approximately 17,550 square feet and will be a two story structure. The first floor consists of approximately 8,775 square feet and will be designed for retail use. The developers are encouraging several small shop owners to lease this bottom space in order to promote pedestrian traffic to the building and in turn the downtown area. The second floor will contain about 8,775 square feet and will house professionals such as attorneys, accountants and consultants. The building will have an elevator and energy - efficient systems. The exterior of the building will be designed to compliment the historic nature of downtown Round Rock and landscaping shall include park benches to accommodate employees and patrons who prefer lunching or reading outdoors. We are projecting the building will contain enough space to hosue about 70 people including the store assistants, florists, clerical workers, bookkeepers and professionals. The parking structure that will be constructed on the southwest portion of the block will provide the necessary parking for the tenants and customers. Building B will be one of four separate buildings to be built on the block bounded by Main Street, Bagdad Street, Sheppard Street and Lampases Street. The three other buildings are to be oonstructed to accommodate the City of Round Rock's several expanding departments and City Council Chambers. The cost of Building B and its proportionate share of the parking garage and common area landscaping is projected to be approximately $1,800,000. Due to the present condition of the downtown sector of Round Rock the developers do not perceive the rental market to be above $10.75 per square foot per annum net of all operating costs. This reduces the cash flow to only about $5,200 after a vacancy factor of 5% and debt service costs. (Developers are using Industrial Revenue Bond financing to be coordinated by MBank Corporation). The developers believe that the magnitude of the entire project, of which this building is an intricate part, will promote the stability -23- and viability of the downtown central business district and will turn a once blighted area into a very vibrant city core. However, during its infancy the project will be financially vulnerable. This vulnerability will probably last until the lease terms are renegotiated in years 3 through 5. It is therefore requested that grant monies in the amount of $500,000 be available for use by Round Rock Partners through the City of Round Rock in order to somewhat restructure the debt service coverage and allow the building to generate enough cash flow during the early years to successfully achieve economic stability which will in turn provide stability to a presently quivering downtown district. Financing Structure Round Rock Partners are seeking $500,000 in grant money; $15,000 to be used by the City of Round Rock in administration of the grant and $485,000 to be loaned by the City of Round Rock to Round Rock Partners at an interest rate of 5% per annum, amortized over a period of 30 years with principal and interest payments delivered monthly from Round Rock Partners to the City after a one year deferment in any repayment thereof in order to help the cash flow of Round Rock Partners during the construction phase of the project. Due to the optimism on behalf of Round Rock Partners that the project will be successful after a period of 5 - 7 years, the loan will have a balloon clause whereby the entire outstanding principal balance and any and all accrued interest thereon shall be due and payable on the tenth anniversary from the execution date of the note. This will allow the City of Round Rock to re- invest these monies into another worthy project that will enhance the City in total and provide necessary jobs within the region. Round Rock Partners and MBank Corporation are coordinating the financing on the balance of funds needed (approximately $1,315,000) to complete the project. The loan term is expected to be 30 years with a balloon in 10 years. The interest rate on the Industrial Revenue Bonds is anticipated to fall between 8 -9 %. The net operating income generated by the project is estimated to be $180,504 after operating expenses and a 5% vacancy allowance. The debt service is $175,206 on IRB's totaling $1,800,000 with a 9% interest rate, 30 year amortized life. This would only leave $5,300 cash flow during the first few years of the project. This amount does not represent a very wide margin for any errors or unforseen circumstances. However, should the developers receive the benefit of the Economic Development Grant at the above represented interest rate and term, the cash flow of the project would increase to roughly $20,955 per year during the first 3 -5 years due to the variance in interest rates. This amount could be considered an adequate cushion should the project need an additional cash injection for any unanticipated occurranee. -24- NATIONAL PROGRAM OBJECTIVE(S) ADDRESSED C. NATIONAL PROGRAM OBJECTIVE(S) ADDRESSED Each activity proposed must address one or more of the three national program objectives outlined in Title I of the Housing and Community Development Act of 1974, as amended. These are: - Principally benefit persons of low /moderate income (i.e., 51 percent of the persons benefitting from the project must be of low and moderate income as defined for the Section 8 housing program.) Section 8 income limits are provided as Appendix IV to this application package. - Prevent or eliminate slum and blight conditions. To qualify the applicant must designate a slum or blighted area as defined by local law and where there exists a substantial number of deteriorating or dilapidated buildings or improvements throughout the area, identify the specific conditions that contribute to slum and blight, and the activities in the application must address the specific conditions identified. - Address other community development needs of particular urgency. The applicant must provide documentation from the Texas Department of Health that the activity is designed to alleviate an existing condition that represents a "serious and immediate threat to the health and welfare of the community which is of recent origin or which recently became urgent." The applicant must also certify that they do not have sufficient local resources to address the problem and that other resources are not available. For each national objective under which the proposed activity qualifies, check the appropriate box and provide the information in that section. /7 Principally benefits low and moderate income persons. Was this determined on direct benefit, or income /condition eligibility? (See Appendices II and IV for determining basis for counting beneficiaries.) Divert genpfit_ Ii direct benefit, how many persons will be employed? Are these • documented letter(s) of commitment from the private firm(s)? This project will allow the retention of 10 existing employees. Also, 60 new jobs will be created with an additional construction impact of 58 jobs. Yes, a jobs commitment letter from Round Rock Partners is attached. If low /moderate income benefits were based on income /condition eligibility, how was income eligibility or condition eligibility of persons benefitting from the activity determined? Also, was it based on HUD Section 8 Income Limits for your county or SMSA? (For examples of income /condition eligibility for Economic Development Projects: existing and /or proposed wage scales, the company's hiring plan, etc., see Appendix IV.) Income eligibility for persons to be hired was based on full time employment times estimated hourly wage for job title. See Item 6, p. 27. Will the local program guidelines for implementation of the requested activity, if funded, include policies to ensure that only income /condition (see Appendix II for definition) eligible persons are the principal beneficiaries of the proposed activity? Yes LW Prevents or eliminates slum and blight conditions. Does the applicant have a local law /ordinance which defines slum and blight conditions? v„ Date of passage? 10/1//82 Has the applicant shown the boundaries of the defined slum and blighted areas on the attached map? Yes What conditions have been identified as contributing to the slum and blighted conditions? Please see the above - mentioned resolution. A:! Addresses other community development needs of a particular urgency. Has the applicant supplied a letter from the Texas Department of Health documenting the urgent need? When was the condition identified or when was the condition determined to be critical? Month? Year? On what basis has the applicant determined that the need cannot be addressed with local funds? Which other potential funding sources have been contacted concerning possible recaurces to resolve this problem? Wha' is the status of each request? -26- -27- RESOLUTION NO. Mp(//`„ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS, MAKING FINDINGS THAT A GEOGRAPHICAL AREA OF THE CITY OF ROUND ROCK IS A BLIGHTED OR ECONOMICALLY DEPRESSED AREA FOR THE PURPOSE OF FINANCING OF PROJECTS FOR COMMERCIAL USES UNDER THE DEVELOPMENT CORPORATION ACT OF 1979 (ARTICLE 5190.6) AS AMENDED: SUCH GEOGRAPHICAL AREA DEFINED IN EXHIBIT "A" AS A REINVESTMENT ZONE; REQUESTING THE TEXAS INDUSTRIAL COMMISSION TO APPROVE COMMER- CIAL PROJECTS WITHIN SUCH DEPRESSED AREAS; DESCRIBING THE TYPE OF PROJECTS FOR COMMERCIAL USES DESIRED AND AUTHORIZED BY THE CITY OF ROUND ROCK; AND REPRESENTING THAT CITY COUNCIL WILL REVIEW ALL PROJECT DESCRIPTIONS. WHEREAS, the City Council of the City of Round Rock gave due and proper notice of public hearing pursuant to Article 5190.6, as amended, Vernon's Civil Statutes (the "Act ") and the Regulations (the "Regulations ") of the Texas Industrial Commission, to be held on this date for the purpose of designating certain areas of the City as a Reinvestment Zone (the "Blighted Areas" or "Economically Depressed Areas ") under and for the purposes of the Act and the Regulations; and WHEREAS, the City Council has found that notice was properly given and published as required by the Act and the Regulations, that the public hearing was held on this date in accordance with law, that the public was given the oppor- tunity to be and was heard on the proposal submitted, and that the City Council has given due and proper regard to the testimony presented; and WHEREAS, while considerable residential - related activi- ties have been undertaken in the area during the past ten years, few programs have been available to provide leverage or incentive for commercial development. This is clearly not in conformance with the City Council's long -range plan for the area which indicates a balanced community with commer- cial, retail, light industrial and residential elements; and WHEREAS, the City Council has found and determined that the City of Round Rock's economic base depends in substantial , 2g part on manufacturing and industrial activities, and commer- cial and tourist activities, and that by virtue of the conditions recited, th'e City of Round Rock is experiencing a need for an increased tax base, increased commercial activi- ties and a need for jobs of a character suitable for its unemployed population, that the provisions of the Act and Regulations will assist the City of Round Rock in achieving these objectives in the Reinvestment Zone and the City as a whole, and that the availability of financing of projects for commercial uses under the Act and the Regulations will contribute significantly to the alleviation of the blighted conditions found to exist in the City of Round Rock; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS (1) That the determinations and findings recited and declared in the preambles to this Resolution are hereby restated, repeated and incorporated herein as the current, proper and lawful findings of the City Council; (2) That the area within. the corporate limits of the City of Round Rock is hereby designated as a Blighted Area under and for the purposes of the Act and the Regulations; (3) That the City Council request the Texas Industrial Commission to approve commercial projects for financing under the Act and the Regulations within the Blighted Areas of the following types, to -wit: (a) Major Office complexes. (b) Commercial facilities. (c) Convention and related facilities. (d) Hotel /Motel and related facilities. (e) Any other commercial activities contributing to revitalization and providing services to neighborhood residents located within and adjacent to redevelopment areas. (4) That the City Council of the City of Round Rock represents that it will review all project descriptions for approval of specific' projects for commercial uses and in order to determine whether such projects are consistent with the City's objectives for redevelopment and rehabilitation of the Blighted Areas designated herein; (5)• This Resolution shall take effect immediately from and after its adoption. RESOLVED this /4 day of ATTEST: J NNE LAND, C‘ Secretary -29- LARR TONN, May .r 82 EXHIBIT A ROUND ROCK SCALE 1 "= O.7MILES 168 Will the local program guidelines for implementation of the requested activity, if funded, include policies to ensure that only income /condition (see Appendix II for definition) eligible persons are the principal beneficiaries of the proposed activity? Yes LW Prevents or eliminates slum and blight conditions. Does the applicant have a local law /ordinance which defines slum and blight conditions? Date of passage? ,n /li, /g, Has the applicant shown the boundaries of the defined slum and blighted areas on the attached map? Yes What conditions have been identified as contributing to the slum and blighted conditions? Addresses other community development needs of a particular urgency. Has the applicant supplied a letter from the Texas Department of Health documenting the urgent need? When was the condition identified or when was the condition determined to be critical? Month? Year? On what basis has the applicant determined that the need cannot be addressed with local funds? .Which other potential funding sources have been contacted concerning possible resources to resolve this problem? What is the status --of each request? DESCRIPTION OF PROJECT ACTIVITIES Round Rock Partners 1. Activity Title: 0f € € -I -i1_comp1 Activity Number: 00001 2. COBG funds requested for this activity: $500 000 3. Total number of jobs created and /or retained 70 (60 created /10 retained) 4a. Total number of new and /or retained jobs that will be provided to low and moderate income individuals 70 ' 4b. lotal percent of new and /or retained jobs that will be provided to low and moderate income individuals 1007 5. Cost per job ._$5,928 ($485,000 loan amount i 70 jobs) 6. Ratio of private and /or public sector funds to CDBG funds q 7.1 j 1,800,000:$485,000) 1. Detailed Activity Description (If necessary, include additional pages to address items 7a, 7b, 7c, 7d, and 7e.) Construction of an Office /Retail Complex in a downtown distressed area 8. Potential Environmental Problems None Attach One Form For Each Activity (including privately financed activities) State of Texas City of Round Rock lexas Community Development Program (Applicant) ECONOMIC DEVELOPMLNI ALLUCA110N Activity Description Form 1 9. Identify other funds that will be committed this activity during the 24 , grant ,period. F (See Part IV• Attachments and Appendix :V :for specific requirements arrd of, commitment for economic. development project. A. Federal Amount Sourc $ 69,300 JTP2� 40 slots) B. State $ 485,000 State ED C. Local $ D. Program Income this COBG Grant $ 15,000 State ED Administratic E. Private $1,295,000 IRE - Private F. Other $ 20,000 Equity (See Appendices I1 & IV for definitions.) (If TCOP funds are being loaned to for - profit firms, see Appendix VI.) - 1 Page of 1 ECONOMIC DEVELOPMENT ALLOCATION State of Texas City of Round Rock Texas Community Development Program (Applicant) ECONOMIC DEVELOPMENT ALLOCATION Employment Projections Form 1. Name, address and telephone number of the person responsible for tracking this project (e.g., Private Industry Council, or other training and referral agency). Mr. Jack Harske - City Manager Mr. Sam Huey - Asst. City Manager 2. Name of firm Round Rock Partners (Attach additional sheets if more than one firm is involved.) 3. Address 9417 Great Hills Trail 412026, Austin, Texas 78759 4. Telephone (512)346 -6129 5. Contact Person Mr Pail ern.* nr Mr Marty 4h P1rnn 6. Please describe the new positions this activity will create as a result of CDBG assistance. Job Title C Construction Skilled M of Jobs Projected Date Skill Level Full Time Part Time Rate of Pay of Hire A. Clerical Skilled -28 4 $5 /hr. August '86 B. Retail Asst.. Semi - skilled 22 5 $5 /hr. August '86 58 $4- 10 /hr. December '85 D. Maintenance Entry 2 8 $5 /hr. August '86 E. c : 7.` of recruiting and hiring' the targeted income group Round Rock Partners propose to include a clause in the tenant lease form that states the availability of the jobs training program and recommend that tenants contact the local repre SPntativP of the program for information Ms. Claudia Romeo of the Williamson Co. 'Community JTPA will rovide assistance in jobs training programs. 8. Method of meeting ot national objectives Revitalizing the downtwon area will have a ripple effect on the entire blighted area. - In terms of rehabilitating the the property owners upgrade to match the current market effect the construction jobs will sustain for a period of years. With the upgraded properties there will be increased demand for long -term jobs for new businesses in an area that had been depressed. MINORITY EMPLOYMENT /CONTRACTING MANAGEMENT • L MINORITY NON - MINORITY 18 PROFESSIONAL —6 23 fit 63 CLERICAL TOTAL EMPLOYMENT 9 F. MINORITY EMPI.OYMENI to receive points related to minority hiring efforts, each applicant must complete the following table and Form EE0-4 even if the answer is "None." Minority Employment Place the number of current employees for each category in the appropriate row and column. Minority employees are defined as Blacks, Hispanics, Asians, Pacific Islanders, American Indians or Alaskan Natives. Employees are defined as permanent employees who work an average of 20 hours or more per week. For determining the population base for minority employment, use population figures for the applying jurisdiction. LOCAL EMPLOYMENT [OPULATION OF JURISDICTION 4,912 T The EEO -4 Form is made a part of the FCDP application for the purposes of determining the level of local effort in the employment of minorities by the local government. It is also ranged by income to show if'there are weaknesses in promotion and/or compensation policies. This form must be completed by every applicant under the Economic Development Project Fund. In order to provide for consistency among the applicants, the information furnished here must have been applicable within twelve (12) months of the application deadline. If the locality has furnished an updated copy of this form to the federal Office of General Revenue Sharing within the last 12 months, this form may be provided to 10CA. If, however, this is not the case, the locality must complete a new form reflecting current municipal /county employment. A blank form is attached. -34= EQUAL EMPLOYMENT OPPORTUNITY COMMISSION STATE AND LOCAL GOVERNMENT INFORMATION (EEO -4) • EXCLUDE SCHOOL SYSTEMS AND EDUCATIONAL INSTITUTIONS APPROVED BE oMs '01°000' MAIL COMPLETED FORM TO. Texas Department of Community Affairs P.O. Box 13166, Capital Station • Austin, TX 78711 A. TYPE OF GOVERNMENT (Check one box only) DI. State ❑ 2. County ® 3. City ❑ X. Township ❑ 5. Special district ❑ 6. Other (Specify) B. IDENTIFICATION 1. NAME OF POLITICAL JURISDICTION (If same as lobel, skie to Item C) City of Round Rock (FOC USE ONLY A 2. Address • Number and Street • CITY /TOWN Round Rock COUNTY Williamson STATE /ZIP Tx. B C. FUNCTION (Check one box to Indicate the foncttonle) for which this form le being submitted. Date ahou d be reported for cog deportmsnts and agencies In your government covered by the functlon(e) indicated. 11 you cannot supply the data for every agency wttNn Ehs howdahs). please attach a fbt showing name and address of agencies whoa data are not Included.) • 1. FINANCIAL ADMINISTRATION. T. asp.,Me, ros b1rulp and ceeectbn.'bode.tklp. patched.. central occountIng and stmt. fleant. admire.eratbe coaled en by • POotoPEO eudaar's Or canprronees .hike and - GENERAL CONTROL. • Wen ...ally pedorm.d by beards a l supra. visors or commisdena.•cmlral odmimttraMo offices and aptncl0.. ,. central persmnd it planning opsncles, WI pd,clel alike. ard,r .. • adplo/en D.dp... meals, rme., babll.. etc) ••• •• a, HbuTH. Proc.. el enAlk hod* woke*. asrideno0 Ord*, *Ong rte..... (.e/ end Ronny knpesel.•a. mental MIA..k.b.l rehash tkn ..e.k., sec • V. HOUSING. Cede •enlercem.na, low rent .public housing. fair Musing ordinance_ enforcement: hoosIng ba.elderly.. hwtbp n. Mblldotbn, rent cannel. — sir. 1 ]. STREETS AND NIDNWAYS: • MakNlanceureroolr, constr. ,,, e d administration N%.veeec alley.. 'Ode.... toads. high : -r5 • and Widnes. - an 1O: CO...MUNITT - DEVELOPMENT. na,. Ia0 zoning land dewlap , men4 1p.n .pet.. bwplkatbru Pre.eraadah S. PUNIC WELFARE. Meintelonce al hem.. and enter m.dNtbn. ler the needy; administration of public au 1000i. (Ha.p.I.Ie end " " sanatoriums should be reported es Item 7.) II. CORRECTIONS. J., reformatories. detention ham.., h.lhwy bout. prisons. parole and probation ettleMe.. 12. UTILITIES AND TRANSPORTATION. Include. we r .0P1Y. .(.an, power, eronW. pas. c.o.. water tron.0onehon and terrnmal.. 1. POLICE PROTECTION W11.s 01 o police deport.nent..0.41P., conoobIere. < office. • . Intl,dl se.Mkol and clock.; employee. ..90(04 In poke eterlee.. IS SANITATION AND SEWAGE. Strew cl.enlnp. garbage and tehM cdlecdon and dnpetal. Prayl.len. molders.. and eae•adm el sanitary end storm sewer Systems and ...Re A.. dents 5. FIRE PROTECTION. Wide. of the uniformed Me 1,.,. end derkal employee.. (R•port cony forest fir• pnatenion ec11.I0e. as Item e ) l.. EMPLOYMENT SECURITY E. NATURAL RESOURCES. Aorscohere 'erector. fetes In. pro ..mien. knout.. drainage, Reed control. etc. end PARKS AND RECREATION Prevision, maboone.e and ...on. el parka, ployaroad., s.Amm.np pools, audlrorl.mn. muse..., marina., toe, ac. I S. OTHER Isp.ul..n Pep.,.,,) Economic Developmen application to develop a revolving loan fund. First recepient: Round Rock Partners • 1. HOSPITALS AND SANATORIUMS Ope•etion and maintenenc• . InHda,an. for ...h.. male., core. A)'YNNUIX IX . FFOC PORM1 w. 0C1.e0 -35- PAGE 1 D. EMPLOYMENT DATA AS OF JUNE 30 (Do not include elected /appointed officials. Blanks will be counted as zero) 1 FULL TIME EMPLOYEES (Temporary employees not included) :^ m0 u ANNUAL SALARY an Mouton& 000 MALE FEMALE TOTAL NON•HISPANIC ORIGIN HISPANN D ASIAN OR PACIFIC ISLANDER E AMERICAN INDIAN NON.HISPANIC ORIGIN HISPANIC 1 ASIAN OR PACIFIC ISLANDER J AMERICAN INDIAN OR ALASKAN NATIVE IC /COLUMNS% ` B K ) A WHILE B BLACK C OR ALASKAN NA1NE F WHILE G 8LACR H 3 c u 1 = o 0 < , 1.5 01.5.9 7 6 0.9.9 3 10.0.12.9 4, 13.0.15.9 2 1 1 5 16.019.9 3 2 1 6 20.0.74.9 7 4 1 2 7. 25.0.32.9 4 3 1 B. 33.0 PLUS 4 4 SIVNOISS310bd 9, 0.1 5.9 10 6 0.9 9 11 10017.9 12 130159 13 160199 14. 200749 2 2 15, 250379 1 1 16. 330PLUS 1 1 SW1311 031 17 0159 18 6099 19 100179 20. 13 0.15 9 8 7 1 71. 160199 2 2 77 200249 1 1 23 25032.9 1 1 24. 330 PLUS PROTECTIVE SERVICE 25. 0 1.5 9 76 6099 27. 10 0.12 9 4 4 28. 130159 71 18 7 - 1 29. 160199 15 13- 1 1 30 , 20,021,9 7 6 1 31' 250329 32. 330 PLUS PARA. PROFESSIONALS 33 0 159 - - - 34 6099 2 2 35 10 0179 1 1 36 130159 3 3 37 160199 39 200249 79. 75 0 37 9 40. 33 0 PLUS OFFICE/ CLERICAL 41. 0159 42 6099 3 2 1 43. 10 0.17 9 20 18 7 14 130159 4 9 1 45. 160199 1 1 46. 70074 9 47 250379 18.5 330 PLUS ' FORM CODE NO: floc Poem Ib. 061 b -36- D. EMPLOYMENT DATA AS OF JUNE 30 (Cont.) (Do not include elected /appointed officials. Blanks will be counted as zero) 5. FULL TIME EMPLOYEES (Temporary employees not Included) S3N16D31VJ ROF ANNUAL SALARY II. I9eu1on4 0001 TOTAL C (MUAW5) 1 8 K 1) A MALE FEMALE NON.HISPANIC ORIGIN HISPANK D AS OR PACIFIC ISLANDER E AMERICAN INDIAN ALASKAN NATIVE F NON - HISPANIC ORIGIN HISPANIC 1• ASIAN OR PACIFIC ISLANDER J AA1111(AN INDIAN ALASKAN NAIVE K WHITE 8 BLACK C WHITE G BLACK H SKILLED CRAFT A9. 0.1.5 9 50. 6.0.9.9 51 10.0.12.9 1 1 52. 13.0.15.9 4 2 2 53. 16.049.9 1 1 54 20.0.24.9 55 25.042.9 56. 33.0 PLUS 3DNYN3ININW /3 57. 0.1.5.9 58. 6.0.9.9 93 19 4 5 9 59. 10.0 -12.9 99 19 4 6 60 13.0.15.9 7 6 1 61. 16.0.19.9 4 3 1 62. 20.0.24.9 63. 2S 0.37.9 64 E 330 PLUS 65. TOTAL FULL TIM (LINES 1 -MI 181 2. OTHER THAN FULL TIME EMPLOYEES (Include temporary employees) 66. OFFICIALS / ADMIN. 67. PROFESSIONALS 66. TECHNICIANS 69. PROTECTIVE SERV. 70. PARAPROFESSIONAL • 71. OFFICE / CLERICAL 4 1 2 I 1 72. SKILLED CRAFT 1 73. SERV. /MAINE. 29 13 2 - 13 1 74. TOTAL OTHER THAN PULL (LIH! 66-73) .33 1 - - 3. NEW HIRES DURING FISCAL YEAR - Permanent full time only ' JULY 1 • JUNE 30 75. OFFICIALS / ADMIN. 76. PROFESSIONALS • 77. TECHNICIANS 78. PROTECTIVE SERV. 79. PARAPROFESSIONAL 80. OFFICE / CLERICAL 81. SKILLED CRAFT 82. SERV. / MAINT. 87. TOTAL NEW HIRES (LINES 75.87) E A. FORM CODE NO: -37- rv4J REMARKS (List National Crime Information Center (NCIC) numbers ' assigned to any Criminal Justice Agencies whose data are included in this report ) * ** INCLUDE LIST OF AGENCIES IN THIS FUNCTION * ** • CERTIFICATION. I certify that the information given in this report is correct and true to the best of my knowledge and was reported in accordance with accompanying instruc- tions. (Willfully false statements on this report are punishable by low, U.S. Code, Title 18, Section 1001.) NAME OF PERSON TO CONTACT REGARDING THIS FORM Linda Gunther ' TITLE Personnel /Payroll Clerk ADDRESS (Number and Street, City, Stole, Zip Code) • City of Round Rock 214 E. Main St. Round Rock, Tx 78664 TELEPHONE NUMBER AREA CODE 512/255 -3612 DATE TYPED NAME / TITLE OF AUTHORIZED OFFICIAL Sam Huey, Finance Director S NAT . fail.' ' FORM CODE NO: 1100 FOWL I M, OCT, 60 -38- PROJECT IMPLEMENTATION SCHEDULE ACTIVITY I 2 10 11 12 13 14 16 16 17 20 21 22 23 24 .. Environmental Review !. Street improvements A) Engineering Design/ plans and specification: B) Hiring of temporary force account crews C) Construction D) Final inspection S. Commercial /retail dev. A) Land /site preparatio B) Arch. /engin. design/ plans and specific. C) Execution of loan loan contract D) Finalization of privlte financing E) Private bid adver./ solicitation & award F) Construction G) Final inspection . General administration s c n, n, n, n, ; s/ s/ s s 1� A x x nl x !1 • x x 6 x x K x x h, x x S c' s/c x et x eI z 1 hl k �I x M A hl S !N S o - i I TABLE l: PROJECT IMPLEMENTATION s = start c = complete CONTRACT EXECUTION DATE I November 15, 1985 CONTRACT ENDING DATE November 15, 1986 ADMINISTRATIVE PLAN N. ADMLNISTRAIIVL PLAN APPLICATION PREPARAIION INFORMAIION -- Name of preparer: ML_aam Huey,_Asst__Cit1 Manager /Rosa Rios— Valdez, SBR Address: 214 B. Main St. Coordinator, 472 - 5059 - Round— RoGk,- Tx-,__ 78664 Telephone:512 /255 -3612 PREVIOUS TDCA CONTRACI PERFORMANCE - -- Does the applicant have any unresolved audit or compliance findings related Lo any project funded in whole or in part by the Texas Department of Conenunity Affairs? Yes _ No If yes, briefly describe the status of the finding in the space below. CONTRACT MANAGEMENI INFORMATION -- To ensure sound program management, provide the following staffing and audit information. A. List the person(s) that will be responsible for general administration of this project, if funded. If unknown, indicate whether you will be hiring or contracting for this function. Indicate funds to be used for this activity - -��� Local 1CDP Unknown — it is anticipated that Mr. Huey's assistant will be designated this responsibility. D. Provide the name of the person who will be responsible for financial management of the project (e.y. bookkeeping, paying bills), if known. Mr. Sam Huey Asst. City Manager City of Round Rock —40— C. For public facilities activities, indicate whether you currently employ an engineer or whether you are planning to contract for this service. N/A D. What is the anticipated date for beginning construction of the proposed activity? (List separate dates, if appropriate, if privately financed construction and public facilities activities are included in the same application) E. List any other type(s) of professional services for which the local government may contract related to the implementation of the proposed project, including any loan servicing by private financial institutions. A. Legal for Land Swap $2,000 . . B. Legal for Loan Document 1,000 C. Independent Audit ' 3,000 F. Will the public facilities activities be accomplished: with force account labor? by contract? N/A combination of the above? C. For privately financed activities, will the construction /rehabilitation /installation be carried out using the company's existing employees? Nn Dy competitive bid? Yes _ H. What type of audit i• anticipated to close out the project, if funded? Independent audit? Municipal audit? _ December, 1985 Also, provide the following information related to the local government's fiscal year. Beginning date: October 1 Ending date: September 30 �1- . STATE OF TEXAS ACTIVITY BUDGET SUMMARY 1. City of Round Rock - CDBG Program 2. Date Prepared: 9-10 -85 (Applicant) 3. For State Use Only Grant Agreement Number 4• ACTIVITY NAME AND NUMBER a. STATE CDBG b. OTHER FEDERAL c. OTHER ..STATE d. LOCAL e PROGRAM INCOME THIS GRANT f.PROGRAM INCOME CLOSED GRANT g. PRIVATE h. TOTAL BUDGET Administration 485,000 15,000 • 1,315,00C • 1,800,000 15,000 5. TOTAL PROGRAM a. 500,000' b. c. d. e. f. g. 1,315,000 h, 1,815,000 6. TOTAL PROJECTED QUARTERLY EXPENDITURES (STATE CDBG ONLY) lst.Qtr. 2nd Qtr 3rd Qtr. 4th Qtr. 1 ",350 5th Qtr. 1;350 6th Qtr. .4;350 7th Qtr. 900 8th Qtr. 9th Qtr. 10th Qtr 489050' ]:,050• 1, 350 Note: Submit one form for entire application. S Activity Budget and Schedule STATE OF TEXAS 2. Activity Number: • 4. Date Prepared: 9/10/85 1.City of Round Rock CDBG PROGRAM 3. Activity Name: 5. For State Use Only Grant Application Number (Applicant) 6. BUDGET Total Budget Personnel Services Sup Materials Services/ Utilities d. Contracts e. Travel Capkal Outlays Ind#ect Costs (Loans) 185,000 State CDBG Federal Other State Local Program Income (this grant) Program 500,000 ° "• .- 15,000 Income (closed grant) Private TOTAL ,; d 1,315,000 ' 1 419 1,815,000 15,000 1,800,00C MO 7. Projected Quarterly Expenditures (State CDBG Only) 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 5th Qtr. 6th Qtr. 7th Qtr. 8th Qtr. 9th Qtr. 10th Qtr 48,500 8. Milestones • -- 1. Architectural /engineering 2. Site re ara 3. Construction tion 4. Construction complete /tenant fin. 12120195 ) 1 I 1 9 120185 19120185 1 bn IA= 1 1 1 I I I I I 1 2 3 3 3 ' " �� 9. Employment Schedules Tenants begin to recruit and " hire -- - / - - -- -- - / - - -- - -/ 1t one form for each activity. GENERAL ADMINISTRATIVE ACTIVITY STATE OF TEXAS _ 1 2. Date Prepared: 9 -10 -85 C ity of un„n Ro k CDBG Program (Applicant) 3. For State Use Only Grant Agreement Number 4. BUDGET Total Budget Personnel Services Supplies/ Materials Services/ Utilities Contracts Travel Capital Outlays Indirect Costs Loans a. State CDBG b. Federal c. Other State d. Local e. Progran Income (this grant) 15,000 8,200 180 360 6,000 100 160 - • f. Prograin Income (closed grant) g. Private h. TOTAL 15,000 8,200 180 360 6,000 100 160 5. Projected Quarterly Expenditures (Stale CDBG Only) 1st Qtr. 2nd Qtr. 3rd Qtr. 4th Qtr. 5th Qtr. 6th Qtr. 7th Qtr. 8th Qtr. 9th Qtr. 10th Qtr 4,350 1,350 1,350 . _., 1,350 1,350 4,350 900 6. Milestones a. Contract w /developer & City drawn up b. . Aucli La d t pur€ase is Jfinalized c 12120185 1 I 1 1 J 1 J 1 3 130 187 5 120 187 1 1 I I I I .3 p c d. Contract close out 7. Audit expenses $ 3,000,000 d ote: Submit one form for entir;a zpplication. USES 1. Land 2. Construction 3. Machinery & Ecuipient 4. Working Capital 5. Developient Costs 6. Or Sul-Total 7. Program Addnistration Sib -Total 8. General . . Administration 9. Planning ' Activities - TOTAL State CMG SOURCES AM USES CF Flnr�s E =45= SOURCES Private Lender(s) O ther Total PLEASE NOTE: All sources oust be doaaented by letter of commitment or interest. Costs Already Incurred Costs to be Incurred Costs Already ' Incurred Costs to be Incurred Costs Already Incurred ed Costs to be Incurred 185,00C 185,000 485,000 20,000 1,110,000 1,615,0C 485,000 20,000 1,295,000 1,800,0C 15,000 15,0C 500,000 20,000 1,295,000 1,815,0C 500,000 ' 20,000 1,295,000 1,815,00 USES 1. Land 2. Construction 3. Machinery & Ecuipient 4. Working Capital 5. Developient Costs 6. Or Sul-Total 7. Program Addnistration Sib -Total 8. General . . Administration 9. Planning ' Activities - TOTAL State CMG SOURCES AM USES CF Flnr�s E =45= SOURCES Private Lender(s) O ther Total PLEASE NOTE: All sources oust be doaaented by letter of commitment or interest. LOCAL RESOLUTION WHEREAS, the State of Texas has funds avajlable for_Economic Development projects; and -- WHEREAS, the Council desires to submit an application for a grant for building improvements in the downtown area to the Texas Department of Community Affairs' 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 an application to the Texas Depa of Community Affairs __ for building improvements in the downtown area. RESOLVED this 12th day of September, 1985. EST: iANNE LAND, City Secretary RESOLUTION NO. [ -46- MIKE ROBINSON, Mayor City of Round Rock, Texas CITY OF ROUND ROCK, TEXAS CITY COUNCIL MEETING THURSDAY, SEPTEMBER 12, 1985, 6:00 P.M. CITY COUNCIL CHAMBER 216 EAST MAIN STREET COUNCE MPMBERR Mike Robinson, Mayor Mike Heiligenstein, Mayor Pro-tem Graham Howell Pete Correa Ronnie Jean Charles Culpepper Trudy L. Lee AGENDA 1. CALL WORK SESSION TO ORDER - 6:00 P.M. 2. ROLL CALL 3. WORK SESSION: A. Consider a report concerning the proposed 1984 -1985 budget amendments. B. Consider discussion of a proposed drainage policy revision. C. Council Comments. D. City Manager's Report. 4. EXECUTIVE SESSION: A. Executive Session as authorized by Article 6252 -17 Section 2, Subsection (3), Vernon's Texas Civil Statutes - Discussion relating to pending litigation, personnel matters and land acq 5. CALL REGULAR SESSION TO ORDER - 7:00 P.M. 6. ROLL CALL 7. APPROVAL OF MINUTES: Regular Meeting of August 22, 1985; Special Called Meeting of August 30, 1985 and Special Called Meeting of September 5, 1985. 8. CITIZENS WM<KUNICATIONS: A. Round Rock Community Hospital - Banner Request. B. Heart of Round rock Merchants Association - Street Closing. C. Round Rock Housing Authority - Annual Report. 9. BOND ORDERS: A. Consider a resolution approving the prospectus and authorizing its distribution for the sale of $12, 150,000 General Obligation Tax Bonds. B. Consider a resolution authorizing the Mayor to enter into an agreement with First City Bank of Austin as the Paying Agent /Registrar bank for the above - mentioned General Obligation Bonds in the amount of $12,150,000. • C. Consider approving a letter allowing First Southwest Company to bid on the upcoming bond sale of $12,150,000 in General Obligation Tax Bonds. 10. APPOINTMENTS: A. Consider appointments to the Development Review Board. 11. PUBLIC HEARINGS: A. Consider public testimony concerning the proposed 1985 -86 Budget. B. Consider public testimony concerning the request to rezone the Ehling Tract from R - (Low Density Residential) to C -1 (Commercial). C. Consider public testimony concerning an Economic Development Administration Grant Application. 12. RESOLUTIONS & PRCCLANArIONS: A. Consider a proclamation proclaiming September 17, 1985 as the International Day of Peace. B. Consider bids and a resolution authorizing the Mayor to purchase a standby generator for the new Police Station. C. Consider bids and a resolution authorizing the Mayor to purchase an Electronic Card Reader for the new Police Station. D. Consider bids and a resolution authorizing the Mayor to purchase two gasoline storage tanks and dispensers for the new Police Station. E. Consider a resolution authorizing the submittal of an Economic Development Administration Grant. F. Consider bids and resolution authorizing the Mayor to enter into an agreement with J. L. Myers Company for the Water Wells Project. -47- AGENDA September 12, 1985 Page 2 13. DISBURSEMENTS: A. Consider various payments to Haynie & Kal]inan, Inc. B. Consider payment to Bay Maintenance Co., Inc. for the 1984 CIP Water and Wastewater Improvements. C. Consider payment to Bryan Construction Co., for the Regional Wastewater Treatment Facility. D. Consider payment to Bay Maintenance Co., Inc. for the Chandler Creek Interceptor Phase Two. E. Consider payment to Advance Tank - Texas, Inc. for the Vista Heights Standpipe Northeast Round Rock Water System Improvements. F. Consider payment to Austin Engineering Co., Inc., for the Downtown Renovation and East Main Street Improvements. G. Consider payment to Clearwater Constructors, Inc., for the Chisholm Trail Street & Drainage Improvements. H. Consider payment to Hilgers & Watkins for the City Hall Complex Project. I. Consider payment to Martha Waitkas for the City Hall Complex Project. J. Consider payment to Talon Roofing for the City Hall Annex Roof Improvements. K. Consider payment to Hayden Concrete for the curb and gutter project behind City Hall. L. Consider payment to Bel -tex Construction for the new Police Station. M. Consider payment to William F. Guyton and Associates for water well exploration work. N. Consider payment to Espy Huston for easement work on the Brushy Creek Interceptor Project. O. Consider payment to Espy Huston for easement work on McNeil Road and West Anderson Street. P. Consider payment to Jalco Construction for the Chandler Creek Interceptor Project. Q. Consider payment to Austin Curb Inc., for various drainage projects. 14. ORDINANCES: A. Consider an ordinance amending the Traffic Code. (Second Reading) B. Consider an ordinance amending the Traffic Code. (Second Reading) C. Consider an ordinance adopting the 1985 version of the Building Codes. (Second Reading) D. Consider an ordinance adopting the 1985 - 1986 Budget. (First Reading) E. Consider an ordinance amending the 1984 - 1985 Budget. (First Reading) F. Consider an ordinance amending the Zoning Ordinance by rezoning the Ehling Tract from R -6 (Low Density Residential) to C -1 (Commercial). (First Reading) G. Consider an ordinance amending the Traffic Code for "No Thru Truck" signs and 25 mph speed limit on Chisholm Trail. (First Reading) H. Consider an ordinance suspending development activity in the South Round Rock Roadway Study Area. (First Reading) I. Consider an ordinance consenting to the sale of park property by the Old Settler's Association to Trammel Crow. (First Reading) 15. OLD BUSINESS: A. Status Report on Lake Creek Flood Control. B. Consider accepance of subdivision inprovemetns in Greenslopes, Section Ten. 16. NEW BUSINESS 17. ADJOURNMENT CERTIFICATE I certify that the above notice of regular City Council meeting was posted on the bulletin board at the City Hall of the City Round Rock, Texas, on the 9th day of September, 1985, at 5:00 P.M. -48- 2 A 1 In n 1 r bnd _ LAND,City cretary NOTICE OF PUBLIC HEARING -- - t 4 ■ ',PUBLIC NOTICE c TO THE CITIZENS OF ROUND ROCK: Notice is hereby given that the Round Rock City Council will hold public hearings relative to an Economic Development Grant for the Downtown 1 Building Project on Thursday. f! September 5th. 1985 at 8 00 AM. and 1l, _ Thursday, September 1215,1985 817:00 P M. Citizens are encouraged 10 attend. ' POSTED this 30th day of August; 1985. JOANNE LAND City Secretary Pub. Dates — September 2, 1985; September 5, 1985; September 9,1985; September 12, 1985. -49- PUB. DATES: September 2, 1985 September 5, 1985 September 9, 1985 September 12, 1985 PUBLIC NOTICE TO THE CITIZENS OF ROUND ROCK: Notice is hereby given that the Round Rock City Council will hold public hearings relative to an Economic Development Grant for the Downtown Building Project on Thursday, September 5th, 1985 at 8:00 A.M. and Thursday, September 12th, 1985 at 7:00 P.M. Citizens are encouraged to attend. POSTED this 30th day of August, 1985. -50- JOANNE LAND, City Secretary 2. ROLL CALL 4. ADJOURNMENT CITY OF ROUND ROCK, TEXAS SPECIAL CALLED CITY COUNCIL MEETING THURSDAY, SEPTEMBER 5, 1485, 8:00 A.M. CITY COUNCIL CHAMBER 216 EAST MAIN STREET COUNCILMEMBERS Mike Robinson, Mayor Mike Heiligenstein, Mayor Pro -tem Graham Howell Pete Correa Ronnie Jean Charles Culpepper Trudy L. Lee AGENDA , 1. CALL SPECIAL CALLED MEETING TO ORDER - 8:00 A.M. CERTIFICATE 3. PUBLIC HEARINGS: A. Consider public testimony concerning a proposed Economic Development Grant for the Downtown Building Project. I certify that the above notice of Special Called City Council Meeting was posted on the bulletin board at the City Hall of the City of Round Rock, Texas, on the 30th day of August, 1985 at 5:00 P.M. - LAND, City Secretary FAIR HOUSING ACTIVITIES TEXAS, ORDINANCE NO. 97,c ,c AN ORDINANCE AMENDING CHAPTER 1, CODE OF ORDI- NANCES, CITY OF ROUND ROCK TO ADD A NEW SECTION 31 TO PROHIBIT DISCRIMINATION IN HOUSING; DEFINING CERTAIN TERMS; PROHIBITING DISCRIMINATION IN THE SALE OR RENTAL OF HOUSING, PROHIBITING DISCRIM- INATION IN THE FINANCING OF HOUSING; PROHIBITING DISCRIMINATION IN THE PROVISION OF BROKERAGE SERVICES; PROVIDING FOR EXEMPTIONS AND EXCLUSIONS; PROVIDING FOR A FAIR HOUSING ADMINISTRATOR; PROVIDING FOR THE RECEIPT AND INVESTIGATION OF COMPLAINTS ALLEGING DISCRIMINATION IN HOUSING; PROVIDING FOR COOPERATION WITH THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT; PROVIDING FOR EDUCA- TION AND PUBLIC INFORMATION; PROVIDING A PENALTY; AND PROVIDING A SEVERABILITY CLAUSE. BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK, I. That Chapter 1, Code of Ordinances, City of Round Rock, Texas is hereby amended by adding Section 31, which shall read as follows: SECTION 31: FAIR HOUSING A. Definitions. For the purposes of this section the following terms, phrases, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words and their derivations shall have the meanings given herein. When not inconsistent with the context, words so used in the present tense include the future, words in the masculine gender include the feminine, words in the plural number include the singular, - ;and words in the singular include the plural. (1) "Discriminatory housing practice" means an act that is unlawful under paragraphs B., C., or D. of this Section. (2) "Dwelling" means any building, structure or portion thereof which is occupied as, or designed and intended for occupancy as a residence by one or more families or any vacant land which is offered for sale or lease for the construction or location thereon of any such building, ;.structure or portion thereof. -52- (3) "Family" includes a single individual. (4) "Person" includes one or more individuals, corpora- tions, partnerships, associations, labor organizations, legal representatives, mutual companies, joint stock companies, trusts, unincorporated organizations, trustees, fiduciaries, and any other organization or entity of whatever character. (5) "To rent" includes to lease, to sublease, to let, and otherwise to grant for a consideration the right to occupy premises not owned by the occupant. B. Discrimination in the Sale or Rental of Housing. (1) Except as exempted by Paragraph E., it shall be unlawful for any person to: (a) Refuse to sell or rent, after the making of a bona fide offer, or to refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny, a dwelling to any person because of race, color, sex, religion, or national origin; (b) Discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, color, sex, religion or national origin; (c) Make, print, publish, or cause to be made, printed or published any notice, statement or advertisement regarding the sale or rental of a dwelling that indicates any prefer- ence, limitation or discrimination based on race, color, sex, religion or national origin, or an intention to make any such preference, limitation or discrimination; (d) Represent to any person because of race, color, sex, religion or national origin that any dwelling is not avail- able for inspection, sale or rental when such dwelling is in fact so available; r `r (e) For profit or with the hope or expectation of profit, induce or attempt to induce any person to sell or rent any dwelling by representations regarding the entry or prospective entry into the neighborhood of any person or persons of a particular race, color, 'sex, religion or national origin. (f) For profit or with the hope or expectation of profit to influence or attempt to influence, by any words, acts, or failure to act, any seller, purchase, landlord or tenant of ' a dwelling so as to promote the maintenance of racially segregated housing or so as to retard, obstruct, or discourage racially integrated housing. C. Discrimination in the Financing of Housing. It shall be unlawful for any bank, savings and loan association, insurance company or other corporation, associa- tion, firm or enterprise whose business consists in whole or in part of the making of commercial or residential real estate loans, to deny a loan or other financial assistance to a person applying therefor for the purpose of purchasing, construction, improving, repairing or maintaining a dwelling; or to discriminate against any such person the fixing of the amount, interest rate, brokerage points, duration, or the terms or conditions of such loan or other financial assis- tance, because of the race, color, sex, religion or national origin of the present or prospective owners, lessees, tenants, or occupants of the dwelling or dwellings for which such loan or other financial assistance is to be made or given. D. Discrimination in the Provision of Brokerage Services. It shall be unlawful for any person to deny access to or membership or participation in any multiple listing service, real estate brokers' organization or other service, organiza- tion or facility relating to the business of selling or renting dwellings, or to discriminate in the terms or condi- tions of such access, membership or particular on account of race, color, sex, religion or national origin. E. Exemptions and Exclusions. (1) There shall be exempted from. the application of Paragraphs B., C., and D. hereof all transactions involving: (a) The rental of units in dwellings containing living quarters occupied or intended to be occupied by no more than four families living independently of each other if the owner actually maintains and occupies one of such units as his residence; (b) The rental of a single room in a dwelling containing living quarters occupied or intended to be occupied by no more than one family if the person offering such room for rental actually maintains and occupies the remainder of such dwelling as his residence and not more than four such rooms are offered. (c) The sale or rental of any single house by a private individual who owns such house, provided that: i. The sale or rental is made without the use in any manner of the sales or rental facilities or the sales or rental services of any real estate broker, agent or salesman, or of such facilities or services of any person in the business of selling or renting dwellings or of any employee or agent of any such._ broker, agent, salesman or person; ii. The sale is made without the publication, posting, or mailing of any advertisement or written notice in violation of Paragraph B.(1)(c) of this Section (this shall not prohibit the use of attorneys, escrow agents, abstractors, title companies, or other such professional assistance as necessary to perfect or transfer of title); and iii. The owner does not own more than three single family houses at the time of the sale, or iv. The owner does not own any interest in, nor is there owned or reserved on his behalf, under any express or voluntary agreement, title to or any right to all or any portion of the proceeds from the sale or rental of more than three such single family houses at one time. v. If the owner does not reside in the house at the time of sale or was not the most recent resident of such house prior to the sale, the exemption granted by this sub - section shall apply only with respect to one such sale within any twenty -four month period. (2) Nothing in this Section shall prohibit a religious organization, association, or society or any non - profit institution or organization operated, supervised, or controlled by or in conjunction with a religious association, or society from limiting the sale, rental or occupancy of dwellings which it owns or operates for other than a commer- cial purpose to persons of the same religion, or from giving preference to such persons, unless membership in such religion is restricted on account of race, color, sex, or national origin. (3) Nothing in this Section shall bar any person from owning and operating a housing accomodation in which a room or rooms are leased, subleased or rented only to persons of the same sex, when such housing accomodation contains common lavatory, kitchen or similar facilities available for the use of all persons occupying such housing accomodation. F. Fair Housing Administrator. The City Manager shall appoint a Fair Housing Admin- istrator (hereinafter referred to as "Administrator "), who shall have the responsibility for implementing this ordi- nance. The Administrator may delegate his authority to other city employees under his direction. G. Complaints. (1) Only the person who claims to have been injured by a discriminatory housing practice or who believes he will be irrevocably injured by a discriminatory housing practice that has occurred or is occurring (hereafter referred to as "person aggrieved ") may file a complaint with the Adminis- trator. Such complaints shall be in writing and shall identify the person alleged to have committed or alleged to be committing a discriminatory housing practice and shall state the facts upon which the allegations of a discrimina- tory housing practice are based. The Administrator shall prepare complaint forms and furnish them to any person, upon request. (2) If at any time the Administrator shall receive or discover credible evidence and shall have probable cause to believe that any person or persons have committed or are committing a discriminatory housing practice as to which no complaint has been filed, the Administrator may prepare and file a complaint upon his own motion and in his own name and such complaint shall thereafter be treated in the same manner as a complaint filed by a person aggrieved. (3) The Administrator shall receive and accept notifica- tion and referral complaints from the U.S. Attorney General and the Secretary of Housing and Urban Development pursuant to the provisions of Title VIII, Fair Housing Act of 1968, Public Law 90 -284, and shall treat such complaints hereunder in the same manner as complaints filed pursuant to paragraph (1) of this Paragraph G. (4) All complaints shall be filed within 60 days following the occurrence of an alleged discriminatory housing practice. Upon the filing or referral of any complaint, the Administrator shall provide notice of the complaint by furnishing a copy of such complaint to the person or persons named therein who allegedly committed or were threatening to commit an alleged discriminatory housing practice. The accused may file an answer to the complaint within fifteen (15) days of receipt of the written complaint. (5) All complaints and answers shall be subscribed and sworn to before an officer authorized to administer oaths. H. Investigation. (1) Upon the filing or referral of a complaint as provided above, the Administrator shall cause to be made a prompt and full investigation of the matter stated in the complaint. (2) During or after the investigation, but subsequent to the mailing of the notice of complaint, The Administrator shall, if it appears that a discriminatory housing practice has occurred or is threatening to occur, attempt by informal endeavors to effect conciliation, including voluntary discon- tinuance of the discriminatory housing practice and adequate assurance of future voluntary compliance with the provisions of this Section. (3) Upon completion of the investigation and informal en- deavors at conciliation by the Administrator, but within thirty (30) days of the filing of the complaint with the Administrator, if the efforts of the Administrator to secure voluntary compliance have been unsuccessful, and if the Administrator has made a determination that a discriminatory housing practice has in fact occurred, the Administrator shall recommend to the City Attorney that such violation be prosecuted in the Municipal Court of the City of Round Rock. With such recommendation, the Administrator shall refer his entire file to the City Attorney. The City Attorney shall, within thirty (30) days after such referral make a deter- mination as to whether to proceed with prosecution of such complaint in Municipal Court. I. Cumulative Legal Effect. This ordinance is cumulative in its legal effect and is not in lieu of any and all other legal remedies which the person aggrieved may pursue. J. Unlawful Intimidation. It shall be unlawful for any person to harass, threaten, harm, damage or otherwise penalize any individual, group or business because he or they have complied with the provisions of this Section, because he or they have exercised his or their rights under this Section, or enjoyed the benefits of this Section, or because he or they have made a charge, testified or assisted in any manner in any investigation, or in any proceeding hereunder or have made any report to the Administrator. K. Cooperation with Secretary of Housing and Urban Development. The Administrator and the City Attorney are authorized to cooperate with the Secretary for Housing and Urban Develop- ment and the U.S. Attorney General pursuant to the provisions of the Title VIII, Fair Housing Act of 1968, Public Law 90 -284, and may render such service to the Secretary as they shall deem appropriate to further the policies of the Section. L. Education and Public Information. In order to further the objectives of this ordinance, the Administrator may conduct educational and public informa- tion programs. M. Penalty. Any person, firm, or corporation violating any provision of this ordinance shall be guilty of a misdemeanor, and upon conviction, shall be fined a sum not to exceed Two Hundred Dollars ($200.00) for each violation. Each day a violation continues after passage of seventy -five days from date -of the filing of the initial complaint with the Administrator shall constitute a separate and distinct offense. Any person, firm, or corporation violating any provision of this Section may be enjoined by a suit filed by the City in a court of competent jurisdiction, and this remedy is in addition to any other penalty provision. II. A. If any provision, section, sub - section, sentence, clause or phrase of this ordinance, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void or invalid (or for any reason unenforceable), the validity of the remaining portions of this ordinance or their application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council of the City of Round Rock in adopting and of the Mayor in approving this ordinance, that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitu- tionality or invalidity of any other portion, provision or regulation, and to this end all provisions of this ordinance are declared to be severable. B. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. (Mark through the following alternative that is not appli- cable) Alternative 1. By motion duly made, seconded and passed with an affirma- tive vote of all the Council members present, the requirement for reading this ordinance on two separate days was dispensed with. READ, PASSED, and ADOPTED on first reading this day of , 19 Alternative 2. TN READ and APPROVED on first reading this the day of Oct., , 19402. READ, APPROVED and ADOPTED on second reading this the c(d rN day of Oct , 19 ATTEST: L' L. TONN, Mayor City of Round Rock, Texas LETTER OF JOB COMMITMENT Appendix IV Attachment to Letter of Job Commitments State of Texas City of Round Rock Texas Community Development Program (Applicant) Please attach this information to letter of job commitments. 1. Total numbers of jobs. 70 2. Number of jobs at or below the low and moderate income difinitions. (See Attached HUD Section 8 income limits for your county) 70 3. Number of jobs above pay scale to be committed to low /moderate income persons. ' _ 60 4. Method used to arrive at number of jobs committed. The development firm will require tenants to submit hiring plans that reflect annual wages. 5. Mechanisms the applicant will use to assure the commitment is fulfilled. The City will request quarterly reports from the developer that reflect the tenant workforce and jobs created /retained. Signature of tuthc.ized Off1Cia -61- RAWLEIGH S. ELLIOT Executive Director Marty Shelton Round Rock Partners 9417 Great Hills Trail #2026 Austin, Texas 78759 Dear Mr. Shelton: EMPLOYMENT RESOURCES "Bringing People and Jobs Together" P.O. Box 740 Georgetown, TX 78627 512/863 -6561 September 11, 1985 CLAUDIA A. ROMERO eropnm Mecior Employment Resources, acting on behalf of the Rural Capital Area Private Industry Council, wishes to express our support of your proposed project in downtown Round Rock. Job Training Partnership Act services are provided by this organization in Williamson County, Employment Resources has funds available to contract with businesses that would occupy the proposed building(s). We would anticipate contracting for On- The -Job Training (OJT) in a minimum of 10% of the 60 projected entry level clerical and retail positions. In addition to jobs available at completion of the project, Employment Resources will set aside training funds for use during the construction phase to provide OJT for a minimum of 10% of those entry level workers needed. It is our understanding that Round Rock Partners is making a full commitment to make potential business and retail tenants aware of the services provided through the Job Training Partnership Act, and to encourage these tenants to avail themselves of JTPA On -The -Job Training benefits. Employment Resources will provide information regarding JTPA services to potential tenants as may be needed to enable full occupancy of the building(s). Such services include substantial employer tax credits and savings on training new employees, as well as listing, advertising and screening all applicants for job openings of new business establishments. We are pleased that your organization is cognizant of the benefits of JTPA and that you are seeking these services in order to fully serve the Round Rock community, employers and potential employees. I encourage the funding of this project on behalf of our JTPA clients, employers and residents of Williamson County. Sincerely, Egn Claudia Romero Program Director �--- A SERVICE OF WILLIAMSON- BURNET COUNTY OPPORTUNITIES, INC. -62- LETTER OF FINANCIAL COMMITMENT 5:i MBankCapital Markets A Una of MBank Dallas Joseph R. Herrera, III Banking Officer Public Finance August 22, 1985 Mr. Paul R. Cronk President Albion Property Corporation 1860 Blake Street, Suite 500 Denver, Colorado 80202 RE: Dear Mr. Cronk: THE ROUND ROCK INDUSTRIAL DEVELOPMENT CORPORATION $6,500,000 (EST.) ROUND ROCK CITY HALL COMPLEX ROUND ROCK PARTNERS PROJECT In connection with the above referenced bond issue, please be advised that MCORP, through either MBank Capital Markets, a unit of MBank Dallas, N.A. or MBank Austin, N.A., will perform the 'following professional services for the Round Rock Partners Project: 1. We will direct and coordinate through MBank Capital Markets, the entire program of financing in preparation of the issuance and sale of the above mentioned securities through a private placement of the securities with institutional and sophisticated /accredited investors with proceeds from the sale of bonds to fund the Round Rock City Hall Complex or; 2. We will direct and coordinate the entire program of financing in preparation of a direct purchase of the above mentioned securities to be held within the investment portfolio of MBank Austin, N.A. or any other designated bank within the MCORP holding corporation. Please be advised the final terms and conditions of the above referenced issue are yet to be determined and will be subject to proper legal documentation and credit approval. Ri e .114/1r tf ly submitted, Herrera III cc: Mr. Marty Shelton Albion Property Corporation P.O.Box 200267 9417 Great Hills Trails # 2026 Austin, Texas 78759 MBank Capital Markets P 0 Box 225415, Dallas, Texas 75265 214 698 6000 —63— RESOLUTION CONCERNING ISSUANCE OF BONDS TO FINANCE A PROJECT FOR ROUND ROCK PARTNERS WHEREAS, the City of Round Rock, Texas (the "Unit "), has, pursuant to the Development Corporation Act of 1979, Article 5190.6, Vernon's Texas Civil Statutes, as amended (the "Act "), approved and created the Round Rock Industrial Development Corporation, a non - profit corporation (the "Issuer "); and WHEREAS, the Issuer, on behalf of the Unit is empowered to finance the cost of projects to promote and develop commercial, industrial and manufacturing enterprises to promote and encourage employment, the public health and the public welfare by the issue of obligations of the Issuer, which projects will be inside the Unit's boundaries; and WHEREAS, Round Rock Partners, a Texas partnership (the "User ") has filed an application, dated June , 1985, which is incorporated herein by reference for all purposes (the "Application "), requesting that the Issuer finance a project described in the Application (the "Project "), within the boundaries of the Unit, and, further, that the Issuer adopt this Resolution with respect to the acquisition, construction, and installation of the Project; and WHEREAS, on June 10, 1982, the City Council of the Unit passed, approved and adopted that certain "Resolution of the -64- City Council Designating One or More Eligible Blighted Areas; Making the Findings Required by the Rules of the Texas Industrial Commission; and Containing Other Matter Relating to the Subject" (the "EBA Resolution "); and . WHEREAS, the Project is located within a blighted area as designated by the EBA JResolution and will assist in alleviation of the blighted condition; and WHEREAS, the User has advised the Issuer that a contributing factor which would further induce the Issuer to proceed with providing for the acquisition and construction of the Project would be a commitment and agreement by the Issuer to issue industrial development revenue bonds pursuant to the Act (the "Bonds ") to finance and pay for the Project; and WHEREAS, in view of rising construction costs and the necessity of compliance with administrative regulations, it is considered essential that construction of the Project be completed at the earliest practicable date but, at the same time, the User wishes to begin construction of the Project after satisfactory assurances from the Issuer that the proceeds of the sale of the Bonds, or other obligations, of the Issuer in an amount necessary to pay the costs of the Project will be made available to finance the Project; and WHEREAS, the Issuer finds, intends, and declares that this Resolution shall constitute its official binding commitment, subject to the terms hereof, to issue Bonds, or other obligations, pursuant to the Act in an amount prescribed by the User now contemplated to be $10,000,000 and to expend the proceeds thereof to acquire, construct, and install the Project and to pay all expenses and costs of the Issuer in connection with the issuance of the Bonds; and WHEREAS, the Issuer finds, considers, and declares that the issuance and sale of the Bonds in the amount and for the purpose hereinabove set forth will be appropriate and •consistent with the objectives of the Act, and that the adoption of this Resolution is and constitutes and is intended as (i) an inducement to the Issuer to proceed with providing for the acquisition and construction of the Project and (ii) the taking of affirmative official action by the Issuer, acting by and through its Board of Directors, towards the issuance of the Bonds within the meaning of federal income tax law with respect to interest on the Bonds to finance certain facilities to be financed by the issuance of exempt small issue bonds or exempt facilities, including`Treas. Regs. §1.103- 8(a)(5) and §1.103 -10. THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE ROUND ROCK INDUSTRIAL DEVELOPMENT CORPORATION THAT: Section 1. Subject to the terms hereof, the Issuer agrees that it will: (a) Issue the Bonds, and if the User and the Issuer agree, other evidences of indebtedness providing temporary financing of the project which will be issued after the date hereof and be refunded by the Bonds pursuant to the Act, or any other Texas legislation•heretofore or hereafter enacted which may provide a suitable method of financing in addition to or in substitution for the Act. (b) Cooperate with the User with respect to the issuance of the Bonds, and, if arrangements therefore satisfactory to the User and the Issuer can be made, the Issuer will take such action and authorize the execution of such documents and will take such further action as may be necessary or advisable for the authorization, execution, and delivery of any contracts or agreements deemed necessary or desirable by the User or the Issuer in connection with the issuance of the Bonds (collectively, the "Contracts "), providing among other things for payment of the principal of, interest on, redemption premiums, paying agents' charges, and Trustee's fees, if any, on the Bonds; payment of fees and charges of the Issuer and the Unit; acquisition, construction, and improvements of the Project; payment of fines and penalties; and use, operation,. and maintenance of the Project(and the execution of any appropriate and necessary guaranty agreements), all as shall be authorized, required, or permitted by law and as shall be authorized, required, or permitted by law and as shall be mutually satisfactory to the Issuer, the Unit, and the User. (c) If the proceeds from the sale of the Bonds are insufficient, take such actions and execute such documents as may be necessary to permit the issuance from time to time in the future of additional bonds on agreed terms which shall be set forth therein, whether on a parity with other series of bonds or otherwise, for the purpose of paying the costs of completing the acquisition, construction, and installation of the Project, as requested by the User and within then applicable limitations. (d) Take or cause to be taken such other actions as may be required to implement the aforesaid undertakings or as it may deem appropriate in pursuance thereof. The Bonds shall specifically provide that neither the credit nor the taxing power of the State,of Texas, the Unit, nor any political subdivision or agency of the State of JTexas or the Unit is pledged to the payment of the principal of, premium, if any, or interest on the Bonds. Section 2. It is understood by the Issuer and the Unit, and the User has represented to the Issuer, that in consideration of this Resolution and by filing the Application, and subject to the terms and conditions hereof, the User has• agreed that: (a) Prior to or contemporaneously with the sale of the Bonds in one or more series or issues from time to time as the Issuer and the User shall hereafter agree to in writing, the User will enter into the Contracts with the Issuer under the terms of which the User will obligate itself to pay to the Issuer (or to a Trustee, as the case may be) sums sufficient in the aggregate to pay the principal of, interest on, redemptiun premiums, paying agents' fees, and Trustee's fees, if any, on -5- the Bonds, as and when the same become due and payable, with such contract to contain the provisions described in Section I hereof and such other provisions as may be required or permitted by law and to be mutually acceptable to the Issuer and the User. (b) The User will (1) pay all Project costs which are not or cannot be paid or reimbursed from the proceeds of the Bonds issued to provide funds to finance the Project; and (2) at all times, indemnify and hold harmless the Issuer and the Unit against all losses, costs, damages, expenses, and liabilities of whatever nature (including but not limited to attorneys' fees, litigation and court costs, amounts paid in settlement, and amounts paid to discharge judgments) directly or indirectly resulting from, arising out of or related to the Application, this Resolution, the Project, or the issuance, offering, sale, or delivery of the Bonds or other evidence of indebtedness issued to provide funds to finance the Project, or the design, construction, installation, operation, use, occupancy, maintenance, or ownership of the Project. Section 3. It is understood by the Issuer that all commitments of the Issuer and the User with respect to the Project and the Bonds are subject to the condition that the Bonds shall have been issued no later than two years from the date of adoption hereof, or such other date as shall I'u mutually satisfactory to the Issuer and the User. Section 4. It is recognized and agreed by the Issuer that the User may exercise its rights and perform its obligations with respect to the financing of the Project either through (i) itself in its own name; (ii) any of its wholly owned subsidiaries; '(iii) any "related person" as defined in Section 103(b)(6)(C) of the Internal Revenue Code of 1954, as amended; or (iv) any legal successor thereof, respectively, subject to approval of the Issuer's bond counsel and, provided that suitable guaranties necessary or convenient for the marketability of Bonds shall be furnished, if required by the Issuer, and all references to the User shall be deemed to include the User acting directly through itself or any such approved entities. Section 5. The adoption of this Resolution, as requested in the Application, shall be deemed to constitute the acceptance of the User's proposal that it be further induced to proceed with providing the Project and the Application and this Resolution shall constitute an agreement between the Issuer and the User effective on the date of this Resolution is adopted, and this Resolution is affirmative of official action taken by the Issuer towards the issuance of the Bonds. PASSED AND APPROVED this 3rd day of July, 1985. ROUND ROCK INDUSTRIAL DEVELOPMENT CORPORATION By: ATTEST: 0929P FINANCIAL INFORMATION 1. Gross Rents 2. Less: Vacancy 5% 3. Add: Misc Income (parking) 4. Gross Operating Income Notes: ROUND ROCK PARTNERS Office /Retail Complex Projected Cash Flow w/o State ED 1st Year 2nd Year Ord Year 252,720 252,720 252,720 252,720 <12,636> <12,636> <12,636> <12,636> 3.600 3.600 3.600 3.600 243,684 243,684 243,684 243,684 5. Less: Expenses <63,180> <63,180> <63,180> <63,180> 6. Net Operating Income 180,504 180,504 180,504 180,504 7. Less: Debt Service <175.206> <159.549> <159.549> <159.549> Net Cash Return 5,298 20,955 20,955 20,955 Rate of Return based on 10% capitalization income stream: Without State ED 5,298 @10% = 52,980 - 1,800,000 = 2.2% ROI With State ED 20,955 @10% = 209,550 - 1,800,000 = 11.6% ROI The State ED affords the developer a much better ROI. Without the Slate ED the project does not provide the developer the incentive to proceed with the project. 1. Rents for years 1 through 3 remain the same as tenants will sign 3 year leases. -71- Cash and Certificates of Deposit Notes and Other Receivables (Note 1) CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 ASSETS Investments: Marketable Securities (Note 2) 2,817,215 Securities Partnership, Market Value 1,140,909 Other Securities (Note 3) 6,464,662 Real Estate and Ranches (Note 4) 32,488,700 Real Estate Partnerships (Note 5) 22,070,500 Other Partnerships (Note 6) 2,466,000 Royalty and Working Interests (Note 7) 1,236,599 Other 559,785 Automobiles, Furniture and Equipment 632,670 Prepaid Expenses 1,059,701 Future Interest (Note 7) 18,688,000 Residence and Improvements (Estimated Current Value) 1,500,000 Personal Assets 378,67q Total Assets X93.365.414 LIABILITIES AND NET WORTH Margin Accounts and Other Liabilities $ 1,273,716 Notes Payable (Note 8) 30,827,526 Estimated income taxes on the differences between the estimated current value of assets and the estimated current amounts of liabilities and their tax bases (Note 9) $ 225,686 1,636,308 12,717,515 Commitments and Contingencies (Note 10) Total Liabilities 44,818,757 NET WORTH 48,546 Total Liabilities and Net Worth S9i.365.1114 ( • Witness. "� Charles Schreiner Nelson CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 _72_ CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 NOTE 1 - NOTES AND OTHER RECEIVABLES Scobey Moving & Storage, Inc. $ 400,000 NAFP, Inc. 110,000 Exxcel Corporation 50,000 Pletz & Associates 569,025 306/35 Joint Venture 306,327 Other 200,956 $ 1,616,108 NOTE 2 - MARKETABLE SECURITIES AT MARKET VALUE American General Corp. - 5,000 Shs $ 261,250 Arvin Industries - 6,600 Shs 129,525 Cullen Frost - 18,120 Shs 443,940 Diamond Shamrock - 10,000 Shs 177,500 Farm & Home Savings - 25,000 Shs 640,625 First City Bancorp - 10,000 Shs 146,250 Mobil Corp. - 7,500 Shs 204,375 San Juan Basin Royalty Trust - 5,000 Shs 228,750 Southwest Airlines - 5,000 Shs 110,000 Southwest Forest - 50,000 Shs 56,000 Transco Exploration - 5,000 Shs 111,875 Other 307,125 NOTE 3 - OTHER SECURITIES Scobey Moving & Storage, Inc., estimated value Lockwood National Bank, cost Other $ 2,817,215 $ 6,260,800 100,000 103.862 $ 6,464,662 CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 NOTE 4 - REAL ESTATE AND RANCHES Blake Street Terrace, office building, Denver, Colorado, cost $16,000,000 11 Acres, Selma, Texas, appraised value 850,000 Divot, Texas Farm, 318 Acres, estimated value 379,200 Farmland, Clark County, Kentucky, es- timated value 101,100 Farmland, Harlon County, Kentucky, in- come value (three times annual income) 183,000 Land, East Baton Rouge Parish, Louisiana, estimated value 300,000 Land and warehouse, San Antonio, Texas, (33.3% undivided interest) contract value 218,300 Land and warehouse, Austin, Texas, con- tract value 2,250,000 Little Paint Creek Ranch, 10,726 Acres, Junction, Texas, appraised value 9,125,000 Oso Pardo Ranch, Colorado (10 %), estimated value 367,000 Quail Crossing Farm, 971 Acres, Hondo, Texas, estimated value 1,500,000 Two Resort lots, Austin, Texas, cost 200,000 18.75% undivided interest in 216.5 Acres, San Marcos, Texas, appraised value 915,000 12.5% undivided interest in 200 Acres, Wimberly, Texas, appraised value 100,000 Other 100 NOTE 5 - REAL ESTATE PARTNERSHIPS Colonial Terrace Apartments (50 %), Princeton, Texas, estimated value Dabney Joint Ventures (appraised values, unless under contract as indicated): No. XI (50 %) - 92 Acres, Grand Prairie, Texas $32,488,700 $ 150,000 2,905,000 CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 NOTE 5 - REAL ESTATE PARTNERSHIPS (Continued) No. XIII (60%) - 221 Acres, McKinney, Texas, contract value $ 1,817,500 No. XIV (60%) - 76 Acres, Benbrook, Texas 2,940,000 No. XV (25%) - 86 Acres, Grand Prairie, Texas 500,000 No. XVI (60%) - 21.5 Acres, S.W. Fort Worth, Texas, contract value 1,365,000 No. XVII (60%) - 1,567 Acres, W. Fort Worth, Texas 7,800,000 5000 Montrose II -IV, Ltd., (28.29%), Houston, Texas, cost 168,000 Kingswood Estate Joint Venture (75%), 159 Acres, N. Richland Hills, Texas, appraised value 300,000 Memorial Plaza (50%) - 17 Acres, Denver, Colorado, cost 534,000 Maiden Lane, Ltd., (.22%) New York, cost 230,000 Nelson - Dunnam Lakeway Property (50 %), Austin, Texas, estimated value 100,000 Pletz and Associates - Perrin Oaks Shopping Plaza (50%), San Antonio, Texas, appraised value 800,000 Potranco Road Joint Venture (8.75%) - 72 Acres, San Antonio, Texas, estimated value 373,000 Redland Road Joint Venture (25%) - 114 Acres, San Antonio, Texas, appraised value 656,000 Schreiner Center, Ltd. (9.O%), Kerrville, Texas, cost 120,000 Sharpstown Center Associates, (.65%) - Houston, Texas, cost 240,000 •306/35 Joint Venture (62.5%) - 47 Acres, New Braunfels, Texas, cost 125,000 Zocalo Courtyard office building (35 %) - San Antonio, Texas, estimated value 525,000 Others, cost 422,000 $22,070.500 NOTE 6 - OTHER PARTNERSHIPS CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 Partnership interest consists of the follow- ing (value based on reserves, appraisals, and estimates): Brazos Farm C.S.A. Partners, Ltd. Dilley Partnership EPC 1979, Ltd. EPC 1980, Ltd. Estoril 1982 -A, Ltd. Espy Energy 82 -A, Ltd. Exxcell, R & D, Ltd. Fotostop Tulsa, Ltd. Genentech Clinical Partners II Hutchins- Kubela Redevelopment .Prospect Nelson -Wyatt Investments North Angelina Partnership Platt Prospect Rotan Hosle Energy Fund SLM, Ltd. III Senergy 1982 -A, Ltd. Senergy 1983 -A, Ltd. Senergy 1983 -B, Ltd. Senergy 1984 -A, Ltd. Starr County Other NOTE 7 - ROYALTY, WORKING AND FUTURE INTERESTS The estimated current value of these interest was determined by Charles Schreiner Nelson as • two and a •half (2 1/2) times the 1984 annualized production income from oil and gas. The future interests are nonforfeitable rights to receive future sums of income and /or assets through certain trusts. $ 73,000 20,000 53,000 47,000 375,000 13,000 96,000 63,000 60,000 62,000 30,000 500,000 51,000 77,000 102,000 60,000 80,000 375,000 37,000 75,000 83,000 114,000 $ 2,466,000 CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 NOTE 8 - NOTES PAYABLE Alamo National Bank, prime plus 1% interest paid semi- annual payments until March, 1986 (guarantee of $637,500), secured by second lien in 216.5 Acres in San Marcos $ 318,750 American Mortgage Company, 11%, due in monthly payments until 1990, mortgage on Austin Warehouse 1,338,120 Charles Schreiner Bank, prime interest plus 1% paid quarterly, due December, 1985, secured by 11 acres in Selma, Texas 392,000 Charles Schreiner Bank, prime plus 1% interest paid quarterly, due August, 1985, second lien in 47 acres in New Braunfels, Texas (306/35 Joint Venture) 300,000 Federal Land Bank of Texas, 11.5% (variable), due in annual installments through January 1, 2020, secured by Little Paint Creek Ranch 4,404,218 First City Bank - Houston, prime interest paid quarterly, due December, 1985, secured by Lockwood common stock 100,000 Frost National Bank, open line of credit, prime (unsecured) 5,000,000 Gill Savings Association, 10% interest, paid monthly, due December, 1988, secured by Blake Street Terrace office building, Denver, Colorado (non- recourse) 16,000,000 Haegelin Heirs, four (4) notes at 10 %, due in annual payments until 1993, mortgage on Quail Crossing Farm 599,843 Callie Ingram, 11% note due in semi - annual payments until March, 1990, secured by 216.5 - acres 'i±n San Marcos, Texas 162,711 Republic Bank - San Antonio, prime plus 1/2% interest paid quarterly, due August, 1985 500,000 San Jacinto Savings of-Beaumont, Texas, 11.875 %, due in monthly payments until 1992, mortgage on Lakeway Lot 81,141 San Antonio Savings Association, 10.75%, due 1009, mortgage on residence 406,758 • MOTE 8 - NOTES PAYABLE (Continued) Winter Garden P.C.A., 12.10% interest paid annually, due August, 1994, secured by Divot Farm Notes pledged by partnership interest: Exxcell R & D, Ltd. IRC Partnerships 5000 Montrose II -IV, Ltd. Maiden Lane, Ltd. Oso Pardo Ranch Sharpstown Center Associates Other Notes NOTE q - ESTIMATED INCOME TAXES The estimated current amounts of liabilities at December 31, 1984, equaled their tax bases. Estimated income taxes have been provided on the excess of the estimated current value of assets over their tax bases as if the estimated current values of the assets had been realized on the statement date, using applicable tax laws and regulations. The provision will probably differ from the amounts of income taxes that eventually might be paid because those amounts are determined by the timing and the method of disposal of realization and the tax laws and regulations in effect at the time of disposal of realization. POTE 10 - COMMITMENTS AND CONTINGENCIES Commitments and contingencies consist of the following loan guarantees (over and above the notes payable listed in Note 8): Lender and Pavable To: First State Savings, San Antonio Gill Savings Associa- tion, San Antonio, Texas InterFirst Bank, San Antonio, Texas CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 For: Pletz & Associates - Perrin Oaks Plaza, San Antonio, Texas Dabney Joint Venture No. XV - 86 Acres in Grand Prairie, Texas Redland Road Joint Ven- ture - 114 Acres in San Antonio, Texas $ 207,000 131,250 113,228 56,000 179,439 255,147 171,334 110,587 $30,827,926 Amount $ 300,000 6,000,000 4,687,500 Lender and Payable To: Frost National Bank, San Antonio, Texas Cullen Frost Bank of Dallas, N.A. Frost National Bank, San Antonio, Texas Frost National Bank, San Antonio, Texas Frost National Bank, San Antonio, Texas Farmer's Home Admini- stration - Sherman, Texas Republic Bank, San Antonio, Texas Various Various CHARLES SCHREINER NELSON FINANCIAL STATEMENT December 31, 1984 NOTE 10 - COMMITMENTS AND CONTINGENCIES (Continued) For: Kingswood Estate Joint Venture - 141 Acres in N. Richland Hills, Texas 54 Acres in Keller, Texas Dabney Joint Venture No. XIV - 76 Acres in Ben - brook, Texas Shadowridge Apartments of Sulphur Springs, Texas Waterford Apartments of Whitewright, Texas Colonial Terrace Apartments of •Princeton, Texas Zocalo Courtyard Joint Venture Scobey Moving & Storage, Inc. Memorial Plaza Partners - 15 Acres - Denver, Colorado Amount $ 1,683,468 756,071 4,375,000 1,248,000 1,040,000 1,020,000 500,000 2,024,891 1,632,000 $,25,766,410 BIRTHPLACE: BIRTH DATE: MARITAL STATUS: EDUCATION: MILITARY: 11EEliHE CHARLES SCHREINER NELSON 420 Wiltshire San Antonio, Texas 78209 Phones: 512 - 822 -5057 - Home 512 - 828 -8393 - Business New York, New York September 10, 1937 Married Wife: Shawn Adele Carpenter Nelson Son: Charles Schreiner Nelson, Jr. Daughter: Shawnee Carpenter Nelson Texas Military Institute and University of Texas B.B.A. 1960 U.S. Army - Quartermaster Corps. First Lieutenant 1960 - 1962 CURRENT Frost National Bank Director PROFESSIONAL San Antonio Savings Assoc. Director AFFILIATIONS: Goodwill Industries Director Independent Petroleum Assoc. Member International Assoc. of Member Refrigerated Warehouses (IARW) National Moving & Storage Member American Warehousemen's Member Association Southwest Warehouse & Member Trans. Association PAST San Antonio Chamber of PROFESSIONAL Commerce AFFILIATIONS: American Cancer Society - Bexar County San Antonio Movers & Warehousemen Texas Beta Student Aid Fund of Austin Page 1 November, 1984 Director Director & Past President Past President Director PAST PROFESSIONAL AFFILIATIONS- (Continued) HONORS AND CERTIFICATES: EMPLOYMENT HISTORY: $ANK REFERENCES: PERSONAL REFERENCES: Allied Van Lines Associated Warehouses, Inc. San Antonio Zoological Society San Antonio Central Index Alamo Area Boy Scouts of America Texas Society for Blindness United Way of. San Antonio American Cancer Society - Bexar County ' San Antonio Goodwill In- dustries San Antonio Jaycees Out- standing Young Man -1969 Scobey Moving & Storage Scobey Moving & Storage Scobey Moving & Storage (1962 - Present) C. Linden Sledge Chairman of the Board Frost National Bank San Antonio, Texas 78296 W. W. McAllister, III President San Antonio Savings Association San Antonio, Texas 78296 Dan Webster Cox & Smith 600 NBC Building San Antonio, Texas 78205 Phone: 512 - 226 -7000 Sol Schwartz - C.P.A. 6243 IH -10, Suite #800 San Antonio, Texas 78201 Phone: 512- 737 -2001 Harry Affleck Affleck & Co. 900 Isom Road Page 2 Director Past President Director Director Special Gifts Chairman Director Director Appreciation Cert. & Plaqu Appreciation Cert. & Plaqu Plaque Asst. General Manager President & Ger. Manager Chairman of the Board, C.E.O. & President PERSONAL REFERENCES. (Continued) John Korbell - Vice President Rotan Hosle, Inc. 100 NBC Building San Antonio, Texas 78205 Phone: 512 - 220 -3812 Page 3 PAUL R. CRONK FINANCIAL STATEMENT SEPTEMBER 10, 1985 PAUL R. CRONK STATEMENT OF FINANCIAL CONDITION SEPTEMBER 10, 1985 Assets Cash $ 110,000 Income Tax Refunds Receivable (Note 2) 14,000 Investments Albion Property Corporation (Note 3) 2,173,700 Sundance, Inc. (Note 4) 50,000 Jollyville Partners (Note 5) 400,000 Round Rock Partners (Note 6) 200,000 Real Estate Condominium, Vail, Colorado (Note 7) 67,500 Condominium, Denver, Colorado (Note 8) 80,000 Cash value of life insurance (Note 9) Personal and Household (Note 10) 100,000 Total Assets $ 3,195,200 Liabilities Income taxes - current year balance (Note 2) Interest -free demand notes payable to Albion Property Corporation (Note 11) Prime plus 1% installment note payable to savings and loan (Note 12) Mortgages payable (Note 13) Contingent liabilities (Note 14) Total Liabilities Estimated income taxes on the excess of the estimated current values of assets over their tax basis (Note 15) Net Worth Date Date l frog $ 249,600 148,600 101,900 500,100 624,500 2,070,600 Total Liabilities And Net Worth $ 3,195,200 The notes are an integral part of this financial statement. The undersigned hereby represents that the above financial statement of Paul R. Cronk as of September 10, 1985 was compiled in accordance with generally accepted accounting principals. Paul R. Cronk authorizes any inquiries deemed necessary to verify this financial statement and to determine Paul R. Cronk's credit worthiness. Attest Signed "� PAUL R. CRONK NOTES TO THE FINANCIAL STATEMENT SEPTEMBER 10, 1985 Note 5. Jollyville Partners is a 50% general partnership interest. The Partnership's underlying asset is undeveloped land located on Jollyville Road in Austin, Texas. The estimated current value of the partnership interest is based on the equity value of the and which is estimated by Paul R. Cronk to be $800,000.00. Note 6. Round Rock Partners is a 50% general partnership interest. The Partnership owns property located in Round Rock Texas which it intends to develop for lease to the City of Round Rock. The estimated current value of the partnership interest is based on the underlying equity value of the land which is estimated by Paul R. Cronk to be $400,000.00. Note 7. An undivided one - fourth interest in a residential condominium located at 741 Stone Creek Drive, Eagle -Vail, Colorado. The estimated current value of $67,500.00 is based on Paul R. Cronk's estimate of the equity value of the interest. Note 8. A residential condominium which is used as a rental property. The condominium is located at 1105 York Street Denver, Colorado. The estimated current value of $80,000.00 is based on the cost of the property which was recently purchased. Note 9. Paul R. Cronk is the insured and Albion Property Corporation and J. Harriet Cronk are each 50% beneficiaries of a $2,000,000.00 policy with Midland Life Insurance Company. Paul R. Cronk is the insured and J. Harriet Cronk is the beneficiary of a $100,000.00 policy with Surety Life Insurance Company. Neither of these policies has a current cash surrender value. Note 10. The current value of personal and household items is based on Paul R. Cronk's estimate. Note 11. Wages of $20,000.00 per month are applied as payment on the notes. Note 12. Second Trust Deed Note payable to Empire Savings & Loan dated March 26, 1985, in the original amount of $150,000.00. Payable in installments until March 1, 1995 at which time the entire unpaid balance matures. Interest accrues at (1) prime for the first 5 years, (2) prime plus 1% for years 6 and 7, (3) prime plus 2% for years 8 and 9 and (4) prime plus 3 % for year 10. Notwithstanding the above, the interest rate shall never be less than 10% per annum and current monthly installments are at the minimum of $1,372.11 per month. Page 2 PAUL R. CRONK NOTES TO THE FINANCIAL STATEMENT SEPTEMBER 10, 1985 Secured by property owned by Albion Property Corporation located at 269 -299 Fillmore Street and 2826 -2830 East Third Avenue, Denver, Colorado. Albion Property Corporation is making the note payments for the benefit of Paul R. Cronk. Such payments increase the notes payable to Albion. Payments on the Albion notes are set forth in Note 11 above. Note 13. The terms of mortgages payable are as follows: One- fourth share of First Interstate Mortgage Company 5 year note at 14.375% dated March 12, 1981 payable in monthly installments. Secured by an undivided interest in condominium property located at 741 Stone Creek Drive, Eagle -Vail, Colorado. $ 41,900.00 World Savings 12.885% Note payable in 356 monthly installments of $658.96. Secured by condominium located at 1105 York Street, Unit 18, Denver, Colorado. Total Mortgages Note 14. Paul R. Cronk is contingently liable as guarantor of a $134,500.00 working capital note payable to Market National Bank by Romney Corporation. Paul owns 60% of the common stock of Romney Corporation. The Corporation has no equity value at July 19, 1985. He is also a joint guarantor on $1,612,400.00 of notes payable to United Bank of Denver,' Victorio Realty Group and First Bank of Villa Italia in connection with Memorial Plaza Partners, a real estate joint venture between Albion Property Corporation (50 %) and Charles Schreiner Nelson (50 %). Note 15. Estimated income taxes on the excess of the current value of assets over their tax basis have been provided at capital gain rates on pretax net worth as follows: Page 3 60,000.00 $101,900.00 . Taxable income Pretax net worth $2,695,100 Add tax gain on Alamo Plaza Services, Ltd. 986,765 Total gains 3,681,865 Capital gain exclusion 2,209,119 Taxable gains 1,472,746 Net operating loss deduction 618,400 Regular tax Alternative minimum tax Tax on current value PAUL R. CRONK NOTES TO THE FINANCIAL STATEMENT SEPTEMBER 10, 1985 Page 4 $ 854,346 445,525 179,025 $ 624,550 P.O. BOX 2910 AUSTIN, TX 78769 512. 475 -2192 September 10, 1985 Round Rock Partners c/o Marty Shelton 9417 Great Hills Trail Suite 2026 Austin, TX 78759 Dear Mr. Shelton: RANDALL H RILE State Represent-[ ive RHR /jc Texas `House 9f kepreserttatives RANDALL H. RILEY STATE REPRESENTATIVE DISTRICT 52 el I have been advised that Care i o u n the process of working to obtain an Economic,Development:Grant. This is such a worth- while project to be= in in since it benefits both the city as%well ea/he, ' „1k with thi o kee 1^ X1191 i.,J' ?P The ; -of Roundt Rock "is'' groowirig--_ lwe = ee �n- order_toobe a ble1tp7up s f ast ; pa`ce*,nd =to rea11y a nw��-� Nap.- ww�l4 1 - rI n,14 ,.. r. u. I I downtown d eve l o pm ent projects. I; - ± r � tIIf. r I,',hopeayou wi1T conties - nuto o£ your progress regarding this / ,1 will be glad to a whateve_ a y s , T "an � d ' a : 1 Y t COMMITTEES: STATE AFFAIRS BUSINESS AND COMMERCE ro 1