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HomeMy WebLinkAbout03-24-08 TC Agenda PacketTOWN OF WESTLAKE, TEXAS BOARD OF ALDERMEN PRE -BOARD MEETING AGENDA MARCH 24, 2008 WESTLAKE CIVIC CAMPUS - DINING HALL 2600 J. T. OTTINGER ROAD 5:00 P.M. 1. CALL TO ORDER 2. EXECUTIVE SESSION A. The Board will conduct a closed session under Texas Government Code section 551.074 to discuss personnel matters; specifically the Town Secretary's evaluation. B. The Board will conduct a closed session under Texas Government Code section 551.087 to discuss economic development negotiations. 3. RECONVENE MEETING. 4. DISCUSSION OF A SECOND WATER SOURCE. 5. REVIEW OF REGULAR AGENDA ITEMS. 6. ADJOURNMENT. ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, Westlake, Texas and the Westlake Civic Campus, 2600 J.T. Ottinger Road, Westlake, Texas, by Friday, March 21, 2008 by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. Kim Sutter, TRMC, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817 - 490 -5710 and reasonable accommodations will be made to assist you. TOWN OF WESTLAKE, TEXAS BOARD OF ALDERMEN REGULAR MEETING AGENDA March 24, 2008 WESTLAKE CIVIC CAMPUS -BOARD ROOM 2600 J. T. OTTINGER ROAD 7:00 p.m. 1. CALL TO ORDER. 2. CITIZENS' PRESENTATIONS: This is an opportunity for citizens to address the Board on any matter whether or not it is posted on the agenda. The Board cannot by law take action nor have any discussion or deliberations on any presentation made to the Board at this time concerning an item not listed on the agenda. Any item presented may be noticed on a future agenda for deliberation or action. 3. HEAR A REPORT FROM BOY SCOUT AND WESTLAKE RESIDENT HAYDEN ANDERSON REGARDING HIS EAGLE SCOUT PROJECT, ESTABLSHING THE TOWN TREE FARM, AND PRESENTATION OF A PROCLAMATION TO MR. ANDERSON. 4. HEAR A REPORT AND CONSIDER A RESOLUTION APPROVING THE TOWN 1 OF WESTLAKE ANNUAL AUDIT FOR FY 2006 -2007 PRESENTED BY PATILLO, BROWN AND HILL, L.L.P. 5. HEAR A REPORT FROM THE WESTLAKE ACADEMY FOUNDATION PRESIDENT. 6. CONDUCT A PUBLIC HEARING AND CONSIDER AN ORDINANCE DESIGNATING COMMERCIAL / INDUSTRIAL TAX ABATEMENT j� REINVESTMENT ZONE NO. THREE (3), IN THE TOWN OF WESTLAKE, TARRANT AND DENTON COUNTIES, TEXAS. 7. CONSIDER A RESOLUTION DESIGNATING A NEIGHBORHOOD 06,1� EMPOWERMENT ZONE, IN THE TOWN OF WESTLAKE, TARRANT AND DENTON COUNTIES, TEXAS. 8. CONSIDER A RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT WITH DELOITTE LLP FOR A LEARNING AND INNOVATION CENTER PURSUANT TO THE TOWN OF WESTLAKE ECONOMIC DEVELOPMENT POLICY AND TAX ABATEMENT POLICY. 9. CONSIDER A RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT WITH DELOITTE LLP AND ITS PROCUREMENT COMPANY FOR ESTABLISHMENT OF A PROCUREMENT COMPANY IN THE TOWN OF WESTLAKE PURSUANT TO THE TOWN OF WESTLAKE ECONOMIC DEVELOPMENT POLICY AND TAX ABATEMENT POLICY. 10. CONSENT AGENDA: All items listed below are considered routine by the Board of Aldermen and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. A. Review and approve minutes of the Board of Aldermen pre -board and regular meetings held on March 10, 2008. B. Review and approve any outstanding bills. 11. EXECUTIVE SESSION A. The Board will conduct a closed session under Texas Government Code section 551.074 to discuss personnel matters; specifically deliberations regarding the appointment of a Town Manager. 12. RECONVENE MEETING. 13. EXECUTIVE SESSION ACTION. 14. ADJOURNMENT. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, and Westlake Civic Campus, 2600 J.T. Ottinger Road, Westlake, Texas, by Friday, March 21, 2008, by 5 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. Kim Sutter, TRMC, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817- 490 -5710 and reasonable accommodations will be made to assist you. Town of Westlake Memo To: Honorable Mayor and Members of the Board of Aldermen From: Joe C. Hennig, Interim Town Manager Debbie Piper, Finance Director Subject: Meeting of March 24, 2008 Date: March 18, 2008 ITEM 4 w��'esoluf�c�w 7 Consider a Resolution approving the FY 2006/2007 annual audit from Pattillo, Brown & Hill, L.L.P. BACKGROUND We are pleased to announce that there were no "Management Letter" comments for the current year audit. The prior year's "Management Letter" contained comments related to opportunities for strengthening internal controls. Below are the prior year comments and actions: Prior year comments and actions: Statement on Auditing Standards No. 112: This was an informational comment only. This statement goes into affect for all fiscal year 2007 audits. It states that if material audit adjustments are prepared by the external auditors, these will be reported as "significant deficiencies ". Also if proper controls are not in place to reduce to a relatively low level the risk that misstatements caused by error or fraud in an amount that would be material in relation to the financial statements may occur and not be detected in a timely period by employees in the normal course of performing their assigned functions, a "material weakness" will be reported. The auditors have reviewed our controls and found them to be sound. There were only a few audit adjustments for the year ended September 30, 2007. The majority of these adjustments were proposed by Town personnel upon items found after the financials had been forwarded to the auditors, e.g. invoices to be posted as accounts payable. Certificate of Achievement for Excellence in Financial Reporting: This comment is the recommendation of the Town to participate in the Certificate Program. We plan to submit our Comprehensive Annual Financial Report for the Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ended September 30, 2007. Segregation of Duties: Internal controls are designed to safeguard assets and to assist in detecting losses from fraud or error. A fundamental concept in an effective system of internal control is the segregation of duties. Although the size of the Town's accounting staff prohibits complete adherence to this concept, we believe that practices could be implemented to improve existing internal control without impairing efficiency. With the addition of our new revenue /records clerk, the Finance Department is now able to more aptly segregate duties to safeguard our assets. As implemented in the previous years, we have included the Texas Student Housing audited information in our report. Because the Board of Aldermen may appoint and/or remove a director of the Texas Student Housing Board, it was determined that TSH should be considered a component unit of the Town. The information has been included in the financials and in the footnotes. It was also noted that the debt of TSH is not a liability of the Town. The inclusion of this information in the Town's audit will not affect any future bond ratings nor have a negative impact on the Town's overall debt ratio for the purpose of securing additional financing in the future. A T n," rvi r" ",%T. l TQ/xn Secretary's Office TOWN OF WESTLAKE RESOLUTION NO. 08 -17 APPROVING THE FISCAL YEAR 2006 /2007 ANNUAL AUDIT REPORT FROM PATTILLO, BROWN & HILL, L.L.P. WHEREAS, Section 103.001 of the Local Government Code requires that a municipality shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit; and WHEREAS, Section 103.002 of the Local Government Code requires that a municipality shall employ at its own expense a certified public accountant who is licensed in this state or a public accountant who holds a permit to practice from the Texas State Board of Public Accountancy to conduct the audit and to prepare the annual financial statements; and WHEREAS, the firm of Pattillo, Brown & Hill, L.L.P. was selected and approved by the Board of Aldermen on July 12, 2006 to perform the Town of Westlake's financial audit for the year ended September 30, 2007. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE: SECTION 1: That the Board of Aldermen does hereby approve the fiscal year 2006 /2007 annual audit report from Pattillo, Brown & Hill, L.L.P., attached as Exhibit «A„ SECTION 2: That this Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 24' DAY OF MARCH, 2008. ATTEST: Kim Sutter, TRMS, Town Secretary APPROVED AS TO FORM: L. Stanton Lowry, Town Attorney Scott Bradley, Mayor Joe C. Hennig, Interim Town Manager Town of Westlake Memo To: Honorable Mayor and Members of the Board of Aldermen From: Joe C. Hennig, Town Manager Subject: Regular Meeting of March 24, 2008 Date: March 19, 2008 ITEM 6) Conduct a Public Hearing and consider an Ordinance designating commercial/ industrial tax abatement Reinvestment Zone No. 3 in the Town of Westlake. 7) Consider a Resolution designating a Neighborhood Empowerment Zone (No. 2) In the Town of Westlake. 8) Consider a Resolution approving an Economic Development Agreement with Deloitte LLP for a learning and innovation center pursuant to the Town's Economic Development Policy and Tax Abatement Policy. 9) Consider a Resolution approving an Economic Development Agreement with Deloitte LLP and its Procurement Company ( the "ProCo ") for establishment of a procurement company in the Town of Westlake pursuant to the Town's Economic Development Policy and Tax Abatement Policy. BACKGROUND Becoming public for the first time tonight, this economic development agreement is in regard to a corporate facility that will provide state -of -the art training and professional development for Deloitte LLP personnel, estimated to host approximately 125,000 visitors a year. The proposed corporate campus known as the Deloitte Center for Leadership and Innovation (DCLI) will be considered Phase I and consist of approximately 750,000 gross square feet with 800 -1000 guest rooms, dining venues, multiple conference spaces, a ballroom, business center, recreational center, spa and fitness center. The total project cost is estimated at $200 -250 million with the construction costs estimated at $165 million for Phase I. This center is estimated to employ 100 Deloitte full time personnel with an additional 300 -400 contracted support personnel jobs. Important to note: Deloitte has also proposed as a part of this project the location of a procurement company (ProCo). The ProCo will purchase and sell items to other Texas Deloitte companies within the State thus increasing our sales tax revenue, not otherwise realized. This ProCo is estimated to generate an additional $500,000 in local sales tax receipts annually for Westlake, if it is created. Hotel Occupancy Tax will apply only to non - Deloitte personnel. The hotel tax has been estimated at $250,000 annually. Additional tax revenue could be realized for the sale of food and mixed beverage to non - Deloitte personnel but no estimates were noted. In addition, a proposed Data Recovery Center (DRC) has been approved by Deloitte as a Phase II project. This DRC has an estimated construction value of $30 million. Tax incentives from both Tarrant County and the State of Texas have been requested for this project. As with past incentive agreements within the Town, Deloitte has requested a 10 year abatement of advalorem property taxes with Phase I beginning at the time the facility is occupied. The agreement states that the Town would collect 25% of the advalorem taxes due and the remaining 75% would be abated. In addition, as an established precedent, the Town seeks to share sales tax dollars with Deloitte for sales from the construction related aspects of the project situs in Westlake. Under the agreement, Deloitte will be reimbursed 50% of the collected sales tax and the Town will keep 50% of the sales tax proceeds related to construction costs. The ProCo agreement specifies that the Town will keep 25% and Deloitte will be reimbursed an amount equal to 75% of the Town's total sales tax receipts. ITEM 6 relates to the creation of Reinvestment Zone No. Three in the Town of Westlake. This designation would allow tax abatement for commercial /industrial uses within the boundaries of Exhibit A, attached to the applicable Ordinance found in Tab 6. This abatement is necessary to attract major investment within the Reinvestment Zone that will be beneficial to the property and to the Town of Westlake. The Board approved Resolution 08 -16 on March 10, 2008, for a notice of intent relating to the establishment of a reinvestment zone and followed the required law for all notification purposes of the required Public Hearing. ITEM 7 relates to the creation of a Neighborhood Empowerment Zone in the Town of Westlake. This zone allows the Town to waive impact fees relating to development within the boundaries as noted in Exhibit A, attached to the applicable Resolution found in Tab 7. The waiving of impact fees within the designated boundary is also necessary to attract major investment within the Neighborhood Empowerment Zone that will be beneficial to the property and the Town. ITEM 8 relates to the economic development agreement specific to Deloitte LLP for the main project of the leadership and innovation center. It is attached for your review behind the applicable Resolution in Tab 8. In order to allow the adoption of this economic development agreement, state law requires that the Town adopt an Economic Development Incentive Policy. This Policy is in place and was most recently adopted by Resolution 06 -19 by the Board on May 8, 2006. ITEM 9 relates to the economic development agreement specific to the ProCo, subsidiary of Deloitte LLP. It is also attached for your review behind the applicable Resolution in Tab 9. FUNDING The situs sales tax revenues are estimated for the Phase I project to be $3 million, based on a construction cost of $165 million. None of these funds would have been realized absent the situs agreement with Deloitte. Since the Town has not adopted an advalorem property tax, no property tax revenues will be abated by the Town of Westlake. In addition, the Town does not collect impact fees, thus no impact fees will be waived. Additionally, sales tax revenues estimated to be received from the proposed procurement company are $500,000 annually. Phase II — Data Recovery Center has an estimated construction cost of $30 million with estimated sales tax revenues of $600,000. However, the start date for this phase has not been determined. A nnnll171r" n'%7_ r To n Secretary's Office TOWN OF WESTLAKE ORDINANCE NO. 589 AN ORDINANCE OF THE TOWN OF WESTLAKE, TEXAS, DESIGNATING COMMERCIAL /INDUSTRIAL TAX ABATEMENT REINVESTMENT ZONE NO. THREE (3), IN THE TOWN OF WESTLAKE, TARRANT AND DENTON COUNTIES, TEXAS; PROVIDING AN EFFECTIVE DATE; AND PROVIDING A SEVERABILITY CLAUSE. WHEREAS, the Board of Aldermen ( "Board ") of the Town of Westlake, Texas ( "Town "), desires to promote the development or redevelopment of a certain contiguous geographic area within its jurisdiction by the creation of a reinvestment zone ( "Zone ) for commercial /industrial tax abatement, as authorized by Chapter 312, Property Redevelopment and Tax Abatement Act, Texas Tax Code, Subchapter B, Sections 312.201 and 312.202, as amended (the "Code "); and WHEREAS, the Town has elected to become eligible to participate in tax abatement; and WHEREAS, a public hearing at a regularly scheduled meeting before the Board was held at 7:00 p.m. on the 24` day of March, 2008, such date being at least seven (7) days after the date of publication of the notice of such public hearing in a newspaper having general circulation in the Town as required by the Code; and WHEREAS, notice of the public hearing was delivered to the presiding officer of the governing body of each taxing unit located within the proposed reinvestment zone at least seven (7) days before the date of the public hearing; and WHEREAS, the Town at such hearing invited all interested persons, or their representatives, to appear and speak for or against the creation of the proposed reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory described in this ordinance should be included in such proposed reinvestment zone, and the concept of tax abatement; and WHEREAS, all interested persons spoke and the proponents of the reinvestment zone offered evidence, both oral and documentary, in favor of the creation of the proposed reinvestment zone and the proponents also submitted evidence as to the proposed improvements. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct and are incorporated herein in their entirety. SECTION 2. The Town, after conducting such hearings and having heard such evidence and testimony, has made the following findings and determinations based on the testimony and evidence presented to it: (a) That a public hearing on the designation of the reinvestment zone has been properly called, held and conducted and that notices of such hearings have been published as required by law and delivered to all taxing units located within the proposed reinvestment zone; (b) That the boundaries of the reinvestment zone should be the area as described in the metes and bounds description attached hereto and identified as Exhibit "A ", which are incorporated herein for all purposes and which area is within the taxing jurisdiction of the Town; (c) That the creation of the reinvestment zone for commercial /industrial tax abatement, with boundaries as described in Exhibit "A" attached hereto will result in benefits to the Town and to the land included in the Zone and to the Town after the expiration of any Tax Abatement Agreement entered into and the improvements sought within the Zone are feasible and practical; (d) That the reinvestment zone as defined in Exhibit "A" attached hereto meets the criteria for the creation of a reinvestment zone as set forth in the Code, as amended, in that it is reasonably likely as a result of the designation to contribute to the retention or expansion of primary employment or to attract major investment in the Zone that would be a benefit to the property and that would contribute to the economic development of the Town; and (e) That the reinvestment zone as defined in Exhibit "A" attached hereto meets the criteria for the creation of a reinvestment zone as set forth in the Town of Westlake Tax Abatement Policy, which Policy establishes guidelines and criteria governing tax abatement agreements by the Town and provide for the availability of tax abatement for both new facilities and structures and for the expansion or modernization of existing facilities and structures. SECTION 3. That pursuant to the Code, the Town hereby creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area described by the metes and bounds in Exhibit "A" attached hereto and such reinvestment zone is hereby designated and shall hereafter be designated as Reinvestment Zone No. Three (3), Town of Westlake, Texas. SECTION 4. That the Town shall deliver to the Texas Comptroller's Office prior to May 1, 2008, a general description of the reinvestment zone, including its size, the types of property located in it, its duration, and the guidelines and criteria established for the reinvestment zone under Section 312.002 of the Code, including subsequent amendments and modifications of the guidelines or criteria. SECTION 5. That the Zone shall take effect on the 24th day of March, 2008. SECTION 6. If any portion of this ordinance shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Board hereby determines that it would have adopted this ordinances without the invalid provision. PASSED AND APPROVED ON THIS 24" DAY OF MARCH, 2008. Scott Bradley, Mayor ATTEST: Kim Sutter, TRMC, Town Secretary Joe C. Hennig, Interim Town Manager APPROVED AS TO FORM: Stan Lowry, Town Attorney EXHIBIT "A' ORD NO. 589 LEGAL DESCRIPTION PROPOSED REINVESTMENT ZONE BEING a tract of land situated in the Jesse Gibson Survey, Abstract Number 592, the G. Hendricks Survey, Abstract Number 680, and the Jesse Sutton Abstract No. 1451 and the Chas Medlin Survey, Abstract Number 1958, Tarrant County, Texas, and being situated in the Jesse Sutton Abstract No. 1154 Denton County Texas and being a portion of that certain tract of land (Tract 2) as described by deed to AIL Investment, L.P., as recorded in Volume 13275, Page 542, County Records, Tarrant County, Texas, and a portion of those tracts of land (tracts 1 & 2) as described by deed to AIL Investment, L.P., as recorded in Volume 13883, Page 335, County Records, Tarrant County, Texas, and a portion of that certain tract of land described by deed to Lakeway Land, Ltd., as recorded in Volume 13978, Page 222, County records, Tarrant County, Texas, and being more particularly described by metes and bounds as follows: BEGINNING at a point in the north line of proposed Roanoke -Dove Road where it intersects the west line of said AIL Investment tract (Volume 13883, Page 335 tract 2); THENCE N 00 008' 56 "W, 664.08 feet; THENCE S89 059'38 "W, 23.21 feet; THENCE N 00 004'20 "E, 200.04 feet; THENCE S 89 °47'29 "W, 391.05 feet; THENCE N 00 009'35 "W, 461.81 feet; THENCE N 00 002'25 "W, 818.71 feet; THENCE N 43 012'43 "E, 127.27 feet to the beginning of a curve to the left; THENCE 320.00 feet along the arc of said curve, through a central angle of 37 °20'29 ", whose radius is 491.00 feet, the long chord of which bears N44° 49'54 "E, 314.37 feet; THENCE N 26 009'38 "E, 100.00 feet to the beginning of a curve to the right; THENCE 124.87 feet along the are of said curve, through a central angle of 12 °54'51 ", whose radius is 554.00 feet, the long chord of which bears N32 °37'03 "E, 124.60 feet; THENCE N 39 °04'28 "E, 195.82 feet; THENCE N 49 047'43 "W, 121.24 feet to the beginning of a curve to the right; THENCE 551.83 feet along the arc of said curve, through a central angle of 27 °15'27 ", whose radius is 1159.96 feet, the long chord of which bears N32'50'1 I "W, 546.64 feet; C &B Job No. 015007.102 ACF #2359 AGS March 18, 2008 j \job\ 015007102 \sur \wp \leg\reinvestmet Page 1 of 3 THENCE N 00 041'56 "W, 1439.38 feet; THENCE S 75 035'35 "E, 821.08 feet to the beginning of a curve to the right; THENCE 371.00 feet along the arc of said curve, through a central angle of 48 °18'39 ", whose radius is 440.00 feet, the long chord of which bears S51 °26' 16 "E, 360.11 feet; THENCE S 27 016'56 "E, 214.64 feet to the beginning of a curve to the left; THENCE 880.40 feet along the arc of said curve, through a central angle of 90 °04'39 ", whose radius is 560.00 feet, the long chord of which bears S72 °19'1 5"E, 792.49 feet; THENCE N 62 038'25 "E, 197.55 feet to the beginning of a curve to the left; THENCE 1075.06 feet along the arc of said curve, through a central angle of 54 °23'23 ", whose radius is 1132.50 feet, the long chord of which bears S59 °20'00 "E, 1035.15 feet; THENCE S 86°31'42 "E, 199.20 feet to the beginning of a curve to the left; THENCE 554.97 feet along the arc of said curve, through a central angle of 15 °16'08 ", whose radius is 2082.50 feet, the long chord of which bears N85 °50' 14 "E, 553.33 feet; THENCE N 78012'10"E, 800.32 feet; THENCE S 09 034'05 "E, 892.93 feet; THENCE S 16 042'32 "W, 1518.12 feet; THENCE S 00 053'35 "E, 573.79 feet; THENCE S 11 °28'06 "E, 564.14 feet; THENCE S 70 037'22 "W, 349.16 feet to the beginning of a curve to the right; THENCE 253.38 feet along the arc of said curve, through a central angle of 19 °21'24 ", whose radius is 750.00 feet, the long chord of which bears S80 °18'04 "W, 252.18 feet; THENCE S 89 058'46 "W, 1261.17 feet; THENCE 89 000'39 "W, 1253.71 feet; THENCE S 87 042'32 "W, 718.15 feet; THENCE S 88 040'26 "W, 272.28 feet to the POINT OF BEGINNING and containing 387.95 acres of land, more or less. C &B Job No. 015007.102 AGS j \job\ 015007102 \sur \wp \leg\reinvestmet ACF #2359 March 18, 2008 Page 2of3 THIS LEGAL DESCRIPTION IS FOR CONTRACT PURPOSES ONLY AND SHOULD NOT BE USED FOR THE CONVEYANCE OF REAL PROPERTY. C &B Job No. 0 15 007.102 AGS j \job\ 015007102 \sur \wp \leg\reinvestmet ACF #2359 March 18, 2008 Page 3 of') • 11 � /l \ `ti _` ,.- =z� "...gyp -•eT' T.� � � �% l', = -- -------------- '-- ^--•_ `y1t_ � �,. %'- - --� �� ,1.�.�✓' QID =_ __- - -___= r Proposed Q \ � Reinvestment -- Zone ' �� - - -- - - - -- ° a _ I ' M io q ai TOWN OF WESTLAKE RESOLUTION NO. 08 -19 APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT WITH DELOITTE LLP FOR A LEARNING AND INNOVATION CENTER PURSUANT TO THE TOWN OF WESTLAKE ECONOMIC DEVELOPMENT POLICY AND TAX ABATEMENT POLICY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, The Board of Aldermen adopted an Economic Development Incentive Policy by Resolution 06 -19 on May 8, 2006, and a commercial/industrial tax abatement reinvestment zone by Ordinance 589 on March 24, 2008; and WHEREAS, pursuant to Chapter 380 of the Texas Local Government Code the Board of Aldermen of the Town of Westlake, Texas (the "Board ") has adopted a program for granting public funds in the form of sales tax rebates to promote local economic development, and stimulate business and commercial activity in the Town of Westlake, Texas (the "Town "); and WHEREAS, pursuant to said policy and Chapter 380 of the Texas Local Government Code the Board finds the economic development incentive offered in the attached Agreement will promote the economic development and stimulate business and commercial activity in the Town. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That the Economic Development Agreement by and between the Town of Westlake, Texas, and Deloitte LLP attached hereto as Exhibit "A" and incorporated herein for all purposes is hereby approved; and further authorizes the Town Manager to execute the contract on behalf of the Town of Westlake, Texas. SECTION 2: That this Resolution shall take effect from and after its final date of passage, and it is accordingly so ordered. PASSED AND APPROVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, ON THIS 24th DAY OF MARCH, 2008. Scott Bradley, Mayor ATTEST: Kim Sutter, TRMC, Town Secretary Joe C. Hennig, Interim Town Manager APPROVED AS TO FORM: L. Stanton Lowry, Town Attorney ECONOMIC DEVELOPMENT AGREEMENT STATE OF TEXAS § COUNTIES OF DENTON AND TARRANT § This Economic Development Agreement ( "Agreement ") is made and entered into as of the day of , 2008 (the "Effective Date "), by and between the Town of Westlake, Texas ( "Town "), a municipal corporation of Denton and Tarrant Counties, Texas, and Deloitte LLP, a Delaware limited liability partnership ( "Deloitte LLP "), each acting by and through their respective authorized officers and representatives. WITNESSETH: WHEREAS, Deloitte LLP (or one of its Affiliates, as herein defined) is considering constructing certain facilities, including, but not by way of limitation, a learning and innovation center within the Town; and WHEREAS, the Town had adopted an Economic Development Policy ("Economic Development Policy') that includes a Tax Abatement Policy ("Tax Abatement Policy') by the passage of Resolution No. 06 -19 on the 8th day of May, 2006, which is attached hereto as "Exhibit A" and incorporated herein for all purposes; and WHEREAS, the Town is a duly created and validly existing Type A General Law Municipality, created under the laws of State of Texas, including particularly, but not by way of limitation, Chapter 51, Texas Local Government Code ( "LGC "); and WHEREAS, on the 24th day of March, 2008, the Board of Aldermen of the Town ('Board "), passed Ordinance No. 589, which is attached hereto as Exhibit "B" and incorporated herein for all purposes, establishing Reinvestment Zone No. 3, Town of Westlake, Texas ("Zone "), for commercial- industrial tax abatement as authorized by Chapter 312 of the Texas Tax Code ( "Tax Code "); and WHEREAS, on the 24th day of March, 2008, the Board passed Resolution No. 08 -18, which is attached hereto as Exhibit "C" and incorporated herein for all purposes, establishing Neighborhood Empowerment Zone No. 2, Town of Westlake, Texas ("Zone "), as authorized by Chapter 378 of the LGC; and WHEREAS, the Economic Development Policy and the Tax Abatement Policy constitute appropriate guidelines and criteria governing economic development agreements to be entered into by the Town as contemplated by Chapter 378 and Chapter 380 of the LGC and Chapter 312 of the Tax Code, providing for the availability of economic incentives for new facilities and structures; and WHEREAS, Deloitte LLP (or one of its Affiliates), as the owner of land located within the Town, intends to develop and construct one (1) or more buildings on the Land (as defined 1363744v.14 DEL255 /16000 herein), and the development and construction on such Land is expected significantly to enhance the economic and employment base of the Town; and WHEREAS, the Constitution and laws of the State of Texas, including, but not by way of limitation, Chapter 378 and Chapter 380 of the LGC, Chapter 312 of the Tax Code and the Texas Constitution, authorize the Town to enter into economic development agreements and tax abatement agreements with companies such as Deloitte LLP; and WHEREAS, the Board finds that the improvements proposed for the Land are feasible and practical and would be of benefit to the Town; and WHEREAS, the Board finds that the terms of this Agreement, the Project (herein defined) and the proposed Qualified Facilities (herein defined) meet the applicable guidelines and criteria heretofore adopted by the Board and contained in the Economic Development Policy and Tax Abatement Policy; and WHEREAS, in order to maintain and enhance the commercial and industrial economic and employment base of the Town and Tarrant County, the Board finds that it is in the best interest of the citizens of the Town to enter into this Agreement in accordance with the Economic Development Policy, the Tax Abatement Policy, the Tax Code and the LGC; and WHEREAS, a copy of this Agreement in its proposed form has been furnished by the Town, in the manner prescribed by the Tax Code, to the presiding officers of the governing bodies of each of the taxing units (other than the independent school districts) in which the Land is located; NOW, THEREFORE, the Town and Deloitte LLP, for good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, which consideration includes the attraction of major investment in the Zone and increased payroll that contributes to the economic development of the Town, the enhancement of the tax base in the Town and Tarrant County and the economic development and tax abatement incentives set forth therein below, as authorized by Chapter 378 and Chapter 380 of the LGC and Chapter 312 of the Tax Code, as amended, do hereby contract, covenant and agree as follows: Section 1. Definitions. Wherever used in this Agreement, the following capitalized terms shall have the meanings ascribed to them: "Affiliate" shall mean any entity that owns or controls, is owned or controlled by, or is under common ownership or control with, Deloitte LLP, or any entity the ownership of which is substantially the same as Deloitte LLP. "Board" shall mean the Board of Aldermen of the Town. "Direct Payment Permit" shall mean a permit granted by the State and authorized under 34 TAC Sec. 3.288 that allows for the tracking of all taxable transactions subject to sales and use tax pursuant to Chapter 321 of the Tax Code. -2- 1363744v.14 DEL255/16000 "First Use" shall mean the designation of the Town for use tax purposes as the situs for Ongoing Costs. "Force Majeure" shall mean any contingency or cause beyond the reasonable control of Deloitte LLP and its Affiliates, including, without limitation, acts of God or the public enemy, epidemic, war, riot, civil - commotion, insurrection, governmental or de facto governmental action (unless caused by acts or omissions of Deloitte LLP or its Affiliates), fire, explosions, floods, or strikes. "Hotel Occupancy Taxes" shall mean those hotel occupancy taxes authorized by Chapter 351 of the Tax Code (or any successor statute). "Jobs" shall mean all positions held by an employee, partner or principal of Deloitte LLP or any of its Affiliates, in which such employee, partner or principal works on a full -time basis for Deloitte LLP or any of its Affiliates and has an office in, or works primarily from, the Qualified Facilities. "Land" shall mean the parcel(s) of land which is more particularly described in "Exhibit C," attached hereto and incorporated herein for all purposes. "Minimum Threshold Eligibility Requirements" shall mean (i) the construction and maintenance of a minimum 750,000 gross square feet of total structures on the Land; (ii) the existence of at least one hundred (100) Jobs; and (iii) the expenditure of no less than $200,000,000 on Project Costs. "Ongoing Costs" shall mean all the respective costs incurred in connection with each building comprising the Qualified Facilities subsequent to the sales grant period described in Section 14.A hereof. "Phase" shall mean each portion of the Project, as developed in such order and containing such acreage as Deloitte LLP, in its sole discretion, may determine. "Phase I" shall mean a portion of the Project constructed on or before January 1, 2014, including, but not by way of limitation, a learning and innovation center, as the first Phase of the Proj ect. "Phase 11" shall mean a portion of the Project whose development begins after that of Phase 1. Phase II may be constructed on the Land or on another parcel(s) of land owned by Deloitte LLP or its Affiliates that is within the Town. Should Phase II be constructed on another such parcel(s) of land within the Town, such parcel(s) shall also be considered to be '*Land.'' "Procurement Company" shall mean a procurement company that Deloitte LLP has the right to establish which operates a business of purchasing and reselling items, including taxable items, within the State. "Project" shall mean the improvements, related infrastructure and/or modifications approved under the Town's Planned Development Regulations and to be constructed on the Land, or with respect to Phase II, on the Land or another parcel(s) of land owned by Deloitte -3- 1363744v.14 DEL255 /16000 LLP or its Affiliates within the Town, by or on behalf of Deloitte . LLP or its Affiliates. The Project includes the Qualified Facilities. "Project Costs" shall mean all costs incurred by Deloitte LLP or its Affiliates with respect to the acquisition, construction, reconstruction, improvement, and expansion, as the case may be, of the Project, whether paid or incurred prior to or after the date of this Agreement, including the cost of the acquisition of all land, rights -of -way, property rights, easements, and interests; the cost of all machinery and equipment, furniture, fixtures and other personal property; the cost of engineering and legal services; plans, specifications, surveys, and estimates of cost and of revenue; other expenses necessary or incident to determining the feasibility and practicability of acquiring, constructing, reconstructing, improving, and expanding the Project; and administrative expenses. "Qualified Facilities" shall mean the buildings and other structural components of the facility to be constructed by or on behalf of Deloitte LLP or its Affiliates as part of the Project; a single building which constitutes a part of the Qualified Facilities may be referred to as a "Qualified Facility." "Sales Tax Receipts" shall mean (1) the Town's receipts from the State from the collection of the Town's Sales and Use Tax attributable to the purchase of taxable items by Deloitte LLP or its Affiliates or its contractors and (2) the Town's receipts from the State attributable to the collection of Total Town Sales and Use Tax by the Procurement Company. The parties expressly acknowledge and agree that the sales and use tax receipts described herein are being used only as a measurement of the Town's payment of grants through the use of general funds. "State" shall mean the State of Texas and all taxing authorities thereof, incl_>>ding, without limitation, the Comptroller of Public Accounts of the State of Texas. "Total Town Sales and Use Taxes" shall mean the Town's Sales and Use Taxes plus the half percent (.5 %) 4B economic development sales tax authorized by art. 5190.6, Vernon's Texas Civil Statutes, Section 4B. and the half percent (.5 %) additional municipal sales and use tax (commonly known as the "sales tax for property tax relief') authorized by Section 321.507 of the Tax Code imposed by the Town (it being expressly understood that sales and use taxes are being used only as a measurement of the Town's grant of lawfully available funds to Deloitte LLP pursuant to Chapter 380 of the LGC). "Town's Sales and Use Taxes" shall mean the local sales and use tax imposed by the Town other than the half percent (.5 %) 4B economic development sales tax authorized by art. 5190.6, Vernon's Texas Civil Statutes, Section 4B. and the half percent (.5 %) additional municipal sales and use tax (commonly known as the "sales tax for property tax relief') authorized by Section 321.507 of the Tax Code imposed by the Town (it being expressly understood that sales and use taxes are being used only as a measurement of the Town's grant of lawfully available funds to Deloitte LLP pursuant to Chapter 380 of the LGC). me 1363744v.14 DEL255 /16000 "Use Payment Permit" shall mean a permit granted by the State that allows for the tracking of all taxable transactions subject to sales and use tax pursuant to Chapter 321 of the Tax Code. Section 2. General Provisions. A. The Qualified Facilities are not, and shall not be, an improvement project financed by tax increment bonds. B. The Land is not owned or leased by any member of the Board, any member of the Planning and Zoning Commission of the Town or any member of the governing body of taxing units with jurisdiction over the Land. C. This Agreement is intended to comply with the requirements of the LGC and the Tax Code and is authorized by the Texas Property Redevelopment and Tax Abatement Act of the Texas Tax Code, Chapter 312, by Chapter 378 and Chapter 380 of the LGC, by the Economic Development Policy, the Tax Abatement Policy and by the resolution of the Board authorizing execution of this Agreement. The Town represents that it has due authority to enter into this Agreement and to take actions under the relevant laws cited herein. Section 3. Term. Subject to Section 5 and Section IOB. hereof, this Agreement shall remain in full force and effect from its date of execution through April 1, 2018, when it shall renew for an additional ten -year period without any action by either party. Thereafter, on each ten (10) year anniversary of such date (each of April 1, 2018 and each ten -year anniversary of such date, a "Renewal Date "), this Agreement shall renew for successive ten (10) year terms without any action by either party; provided, however, that on any Renewal Date, either Deloitte LLP or the Town may elect to terminate this Agreement by providing the other party not less than thirty (30) days' written notice of termination, as further described in Section 5 of this Agreement. The term of this Agreement notwithstanding, the shorter time periods specified in Sections 7, 10 and 14 hereof shall control for the purposes specified in such sections. The tax abatements, grants and other economic development incentives granted hereby to Deloitte LLP for the Qualified Facilities and the Project shall continue for the duration of the specified term and, once all applicable conditions specified herein have been fulfilled, shall not be lost through Force Majeure events or other circumstances beyond the reasonable control of Deloitte LLP or its Affiliates, except to the extent otherwise specified in Sections 5 and 15 hereof. Section 4. Records and Inspections. A. Not later than February 15 of each year during the term of this Agreement, Deloitte LLP shall certify to the Town (i) the number of Jobs as of January 1 of such year, and (ii) if changed from the previous year, the aggregate number of gross square feet of office space contained in the Qualified Facilities as of January 1 of such year, as reasonably calculated by an architect retained by Deloitte LLP. -5- 1363744v. 14 DEL255 /16000 B. At all times throughout the term of this Agreement, the authorized representatives of the Town shall have reasonable access to the Qualified Facilities, during normal business hours and upon at least five (5) business days' prior written notice to Deloitte LLP, for the purpose of inspecting same to ensure that the Qualified Facilities are maintained in accordance with the specifications and conditions of this Agreement; provided, however, that Deloitte LLP or its representatives shall have the right to accompany the authorized representatives of the Town on any such inspection and that such inspection shall be conducted in a manner which complies with Deloitte LLP's security procedures and which is the least disruptive of the employees and business operations of Deloitte LLP and its Affiliates. C. Deloitte LLP shall also provide the Town, in a timely manner, reasonably satisfactory evidence of all sales taxes paid by Deloitte LLP or its Affiliates for which Deloitte LLP seeks a grant pursuant to Sections 14 and 15 below. Section 5. Breach and Remedy; Termination. A. The occurrence of the following conditions shall constitute an event of default ("Event of Default ") hereunder: (i) the Qualified Facilities for which Deloitte LLP or any of its Affiliates has received an abatement hereunder fail to satisfy the Minimum Threshold Eligibility Requirements at any time subsequent to January 1, 2014; or (ii) Deloitte LLP fails to comply with any of the material terms or conditions of this Agreement, and any such failure (hereinafter, a "breach ") specified in either clause (i) or (ii), above, remains uncured for ninety (90) days following Deloitte LLP's receipt of written notice (the "Breach Notice ") from the Town, delivered in accordance with Section 18 hereof, of the event and nature of such breach; provided, however, that if such breach is not reasonably susceptible of cure within such ninety (90) day period and Deloitte LLP has commenced and is continuing to pursue the cure of such breach, then after first advising the Town of such cure efforts, Deloitte LLP shall automatically receive an additional ninety (90) day period within which to cure such breach. The Town may authorize additional time to cure any such breach, but is not obligated to grant such additional time. Notwithstanding anything expressed or implied herein to the contrary, no Event of Default shall exist if the failure of Deloitte LLP to fully perform its obligations hereunder is the result of a Force Majeure event. Further time for cure of a breach by Deloitte LLP shall be extended by the reasonable time Deloitte LLP is delayed by a Force Majeure event. B. Upon the occurrence and during the continuation of any uncured Event of Default, the Town shall have the right to suspend the tax abatements and grants specified in Sections 10, 11, 14, 15 and 16 hereof, pursuant to a notice (the "Suspension Notice ") delivered in accordance with Section 18 hereof, and thereafter to receive from Deloitte LLP, as liquidated damages, a sum equal to (i) the amount of all ad valorem taxes which were assessed against the Qualified Facilities and which would have been paid to the Town by Deloitte LLP or its Affiliates but for this Agreement, for each year in which the Event of Default -6- 1363744v.14 DEL255 /16000 occurred and was continuing, without the benefit of abatement (after taking into account any applicable exemptions), and (ii) interest thereon charged at the rate of four and one -half percent (4.50 %) per year and calculated for the period commencing on the date such taxes would have been delinquent and continuing through the date of payment of such liquidated damages. The calculation of liquidated damages shall not include any penalties or late charges. Such liquidated damages shall be due and payable to the Town within thirty (30) days of the receipt by Deloitte LLP of the Suspension Notice. If the Town delivers a Suspension Notice pursuant to this Section 5, then Deloitte LLP shall thereafter have no right to receive the tax abatements and grants specified in Sections 10, 11, 14, 15 and 16 hereof unless and until Deloitte LLP has cured the breach or breaches specified in the Breach Notice. C. The remedies of Town provided herein are exclusive; all other remedies of Town including, without limitation, the remedy of specific performance or the right to seek any damages other than the liquidated damages specified above, being hereby waived. D. This Agreement shall terminate upon any one of the following: (a) On any Renewal Date, by either party, upon not less than thirty (30) days' written notice of termination to the other party; (b) By Deloitte LLP, immediately upon written notice to the Town, if the Town fails to pay any grant within the applicable time period provided under this Agreement; and (c) Immediately upon written notice from Deloitte LLP to the Town, upon any breach by the Town of its obligations under Section 15 with respect to Confidential Tax Information. Section 6. Sale, Assignment or Lease of Property. Deloitte LLP shall have the right, without the Town's consent, to transfer, convey or lease all or any portion of the Land, the Project or the Qualified Facilities to one or more of its Affiliates and, in connection therewith, to assign to such Affiliates all or any portion of Deloitte LLP's rights and obligations under this Agreement, provided that each assignee assumes the applicable terms and conditions of this Agreement. All other assignments of all or any portion of Deloitte LLP's rights and obligations under this Agreement shall require the prior approval of the Board. Deloitte LLP shall notify the Town pursuant to Section 18 of any proposed assignment requiring the Board's approval at least fifteen (15) days prior to the proposed effective date of such assignment. The approval of the Board of such assignment shall not be unreasonably withheld. -7- 1363744v. 14 DEL255 /16000 Section 7. Waiver of Fees. A. The Town agrees that it shall waive all of the fees related to the construction of buildings in the Zone, including Impact Fees (as such term is defined in Chapter 395 of the LGC) for Phase II. B. All fees assessed by Town against Deloitte LLP or its Affiliates for all phases of the Project other than Phase II shall be made in strict compliance with Chapter 378 and Chapter 395 of the LGC, as appropriate, and Deloitte LLP does not waive, and hereby expressly retains, all rights to challenge any such fee assessed by the Town. Section 8. Permitting Process. A. The Town agrees that any permit or application submitted in connection with the Qualified Facilities that requires action by the Town, including, but not limited to, applications for: (a) zoning; (b) site plan and plat approval; (c) building permits; (d) certificates of occupancy; and (e) water, sewer and/or drainage improvements or connections shall be entitled to priority and shall be reviewed and approved as expeditiously as possible. Section 9. Mutual Assistance. The Town hereby agrees to cooperate with Deloitte LLP and its Affiliates in filing, whether solely or in conjunction with other parties, appropriate applications with county, state or federal agencies for grants, loans or other economic, non - economic, and infrastructure cost assistance, to benefit the Project, if requested by Deloitte LLP. Section 10. Tax Abatement. A. The parties acknowledge that the Town does not currently levy ad valorem taxes against real or personal property within the Town, and the Town does not anticipate levying such taxes in the foreseeable future. However, as a material inducement to Deloitte LLP and its Affiliates to construct the Qualified Facilities, the Town hereby grants a tax abatement of seventy -five percent (75 %), such that Deloitte LLP and its Affiliates shall pay twenty -five percent (25 %), of all real and personal property ad valorem taxes which may hereafter be assessed by the Town and which may be abated under Ch. 312 of the Tax Code (or any successor statute) on each Qualified Facility constructed in the Project. -8- 1363744v. 14 DEL255 /16000 B. The term of the tax abatement for each Qualified Facility shall extend for a period of ten (10) years from the later of the date that ad valorem taxes are levied by the Town or the date of issuance of the initial certificate of occupancy for such Qualified Facility. Any tax abatement approved hereunder shall survive the termination of this Agreement and remain in force so long as Deloitte LLP complies with the Minimum Threshold Eligibility Requirements. Section 11. Grants. The Town recognizes that the abatement of future ad valorem taxes, as provided in Section 10, above, constitutes a material inducement to Deloitte LLP and its Affiliates to construct the Qualified Facilities. If the Town elects to levy ad valorem taxes against real or personal property within the Town and the tax abatement and grant provisions contained in Section 10 hereof are determined to be unenforceable or unlawful or are rendered unenforceable or unlawful by the passage of any federal or state law, Town shall make, and hereby makes, economic development grants to Deloitte LLP, such grants to equal the amount of the ad valorem taxes that otherwise would have been abated and rebated in accordance with Section 10 hereof and such grants shall remain in effect for the same period tax abatements would have been in effect pursuant to subsection 10.13 above. Section 12. Right of Protest. A. Deloitte LLP and its Affiliates shall have the right to protest, contest or litigate: (a) any assessment of the value of the Project by any appraisal district which appraises real or personal property on all or any part of the Project; and, (b) any tax imposed on the Project by any taxing authority. The tax abatement (or, if applicable, the grants) provided for herein shall be applied to the amount of taxes finally determined to be due as a result of any such protest, contest or litigation. B. Except as expressly provided, this Agreement shall not be construed to in any way modify Deloitte LLP's or any of its Affiliates' right to protest, contest or litigate any and all Impact Fees, ad valorem taxes or any other taxes, fees or charges which may be levied or assessed by the Town or any other entity on the Project or Deloitte LLP's or any of its Affiliates' operations at the Project. Notwithstanding the foregoing, in the absence of either a casualty to the Qualified Facilities or a reduction in average property value in the Town (as measured against the average property value in the Town as of the date of this Agreement) of 25% or greater, any protest of ad valorem taxes by Deloitte LLP or its Affiliates after the completion of Phase I resulting in an appraised value for the Qualified Facilities of less than $50,000,000 shall constitute an Event of Default. Section 13. Annual Application for Tax Exemption. It shall be the responsibility of Deloitte LLP, pursuant to Section 11.43 of the Tax Code, if any, to file an annual exemption application form with the chief appraiser for each appraisal district in which the Project has situs. -9- 1363744v.14 DEL255 /16000 Section 14. Chapter 380 Grant Based Upon Sales Taxes. A. Pursuant to the authority granted by Chapter 380 of the LGC, Deloitte LLP shall receive from the Town a grant in the amount equal to one hundred percent (100 %) of the Sales Tax Receipts pertaining to the Town's Sales and Use Taxes that were paid by Deloitte LLP, its Affiliates or their respective contractors within the applicable period described herein for any Project Costs, except with respect to those Project Costs incurred by the Procurement Company (defined below). The sales tax grant period created under this Section 14 shall commence on the execution of this Agreement and shall expire for each building that comprises any portion of the Qualified Facilities on the date that is sixty (60) months following the date the Town issues a building permit for the construction of such building. B. The sales tax grants made hereunder shall be paid solely from lawfully available funds that have been appropriated by the Town. The Town will ensure that the amount of funds appropriated is sufficient to ensure the payment of grants in the amount identified in subsection 14.A., above. Under no circumstances shall the Town's obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. C. Deloitte LLP shall use diligent and good faith efforts to manage all construction comprising or related to the Qualified Facilities to maximize, to the extent practicable and reasonable for Deloitte LLP, the amount of sales tax collection by the Town by having a point of sale in the Town in accordance with all applicable law. D. All grants referenced herein shall be paid quarterly to Deloitte LLP within sixty (60) days following the end of the calendar quarter in which the relevant Sales Tax Receipts were received by the Town. The amount to be granted shall be determined based on the relevant Sales Tax Receipts received by the Town pertaining to, or on behalf of, Deloitte LLP or its Affiliates. Section 15. Chapter 380 Grant Based Upon ProCo Incentive Agreement Revenues A. Pursuant to Texas law, Deloitte LLP shall have the right to establish the Procurement Company. Upon Deloitte LLP's request, the Town will enter into an economic development incentive agreement with the Procurement Company, in the form attached hereto as Exhibit "D" (the "ProCo Incentive Agreement "). Whereupon, pursuant to the terms of the ProCo Incentive Agreement, Deloitte LLP will use the Procurement Company (which is sited within the Town), to the extent practicable and reasonable, to make purchases for the operations of Deloitte LLP and its Affiliates within the State of Texas. Deloitte LLP and the Town agree that the failure by any third party to observe or comply with the terms of the ProCo Incentive Agreement shall not be attributable in any way to Deloitte LLP or the Town. -10- 1363744v.14 DEL255/16000 B. Pursuant to the authority granted by Chapter 380 of the LGC, the Town shall make a grant to Deloitte LLP, or, as Deloitte LLP may direct, to one of its Affiliates in an amount equal to 75% (excluding sales tax revenues from the half percent (.5 %) 4B economic development sales tax authorized by art. 5190.6, Vernon's Texas Civil Statutes, Section 413) of Total Town Sales and Use Taxes collected through the ProCo Incentive Agreement. The parties expressly acknowledge and agree that the sales and use taxes described herein are being used only as a measurement of the Town's payment of grants through the use of general funds. C. The sales tax grants made hereunder shall be paid solely from lawfully available funds that have been appropriated by the Town. The Town will ensure that the amount of funds appropriated is sufficient to ensure the payment of grants in the amount identified in subsection A., above. Under no circumstances shall the Town's obligations hereunder be deemed to create any debt within the meaning of anv constitutional or statutory prevrsron. Section 16. Chapter 380 Grant Based Upon Sales/Use Taxes for Ongoing Spend. A. In the event that the ProCo Incentive Agreement is not executed, Deloitte LLP shall have the right to seek to obtain a Direct Payment Permit, which would establish First Use within the Town. B. If Deloitte LLP obtains such a Direct Payment Permit, pursuant to the authority granted by Chapter 380 of the LGC, Deloitte LLP shall receive from the Town a grant in the amount equal to one hundred percent (100 %) of the Sales Tax Receipts pertaining to the Town's Sales and Use Taxes that were paid by Deloitte LLP or its Affiliates for any Ongoing Costs. tt JJ C. The sales /use tax grants made hereunder shall be paid solely from lawfully available funds that have been appropriated by the Town. The Town will ensure that the amount of funds appropriated is sufficient to ensure the payment of grants in the amount identified in subsection 16.B., above. Under no circumstances shall the Town's obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. D. If Deloitte LLP obtains such a Direct Payment Permit, Deloitte LLP shall use diligent and good faith efforts to manage all Ongoing Costs related to the Qualified Facilities to maximize, to the extent practicable and reasonable for Deloitte LLP, the amount of sales and use tax collection by the Town arising from establishing First Use in the Town in accordance with all applicable law. E. All grants referenced herein shall be paid quarterly to Deloitte LLP within sixty (60) days following the end of the calendar quarter in which the relevant sales tax receipts were received by the Town. The amount to be granted shall be determined based on the relevant Sales Tax Receipts received by the Town pertaining to the Project, by or on behalf of Deloitte LLP or its Affiliates. -11- 1363744v. 14 DEL255 /16000 Section 17. Chapter 380 Grant Based Upon Hotel Occupancy Taxes. A. Pursuant to the authority granted by Chapter 380 of the LGC, Deloitte LLP shall receive from the Town a grant in an amount equal to fifty percent (50 %) of the Town's Hotel Occupancy Taxes collected by Deloitte LLP or its Affiliates with respect to any of the Qualified Facilities. The grant period created under this Section 16 shall commence with the issuance of a certificate of occupancy for each Qualified Facility within the Project. B. The grants referenced herein shall be paid solely from lawfully available funds that have been appropriated by the Town. The Town will ensure that the amount of funds appropriated is sufficient to ensure the payment of grants in the amount identified in subsection 16.A., above. Under no circumstances shall the Town obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. C. All grants referenced herein shall be paid to Deloitte LLP within sixty (60) days of the end of each calendar quarter. The amount to be granted shall be determined based on receipts submitted by, or on behalf of, Deloitte LLP or its Affiliates to the State. Section 18. Notice. Any notice, demand, or other communication required to be given or to be served upon any party hereunder, shall be void and of no effect unless given in accordance with the provisions of this Section. All notices shall be in writing and shall be delivered personally or sent by overnight courier service, by certified or registered mail; postage pre -paid, or by facsimile transmission and shall be deemed received, in the case of personal delivery, when delivered, in the case of overnight courier service, on the next business day after delivery to such service, in the case of mailing, on the third day after mailing (or, if such day is a day on which deliveries of mail are not made, on the next succeeding day on which deliveries of mail are made) and, in the case of facsimile transmission, upon transmittal. All notices, demands and other communications shall be given to the parties hereto at the following addresses: Deloitte LLP: With Copies to: Office of General Counsel 1633 Broadway New York, New York 10019 Town: Joe Hennig -12- 1363744v.14 DEL255/16000 Interim Town Manager Town of Westlake 3 Village Circle, Suite 202 Westlake, Texas 76262 With copy to: L. Stanton Lowry Boyle & Lowry L.L.P. 4201 Wingren, Ste. 108 Irving, Texas 75062 Each party may change the address to which notice may be sent to that party by giving notice of such change to the other parties in accordance with the provisions of this Agreement. Section 19, Toxxm Authorization. This Agreement was authorized by resolution of the Board that was approved by the affirmative vote of a majority of the Board at its regularly scheduled Board meeting on the 24th day of March, 2008, authorizing the Town Manager to execute this Agreement on behalf of the Town. Town represents and warrants to Deloitte LLP that Town may lawfully perform its obligations under this Agreement. Section 20. Deloitte LLP Authorization. The individual executing this Agreement on behalf of Deloitte LLP represents to the Town that all appropriate and necessary action has been taken to authorize such individual to do so for and on behalf of the party for which his or her signature appears, that there are no other parties or entities required to execute this Agreement in order for the same to be an authorized and binding agreement, and that such authorization is valid and effective on the date hereof. Section 21. Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. Section 22. Estoppel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose, and each party agrees to promptly execute and deliver any estoppel certificate requested pursuant to this Section. The certificate, which will upon request be addressed to Deloitte LLP, or a lessee, purchaser or assignee of Deloitte LLP, shall include, but not necessarily be limited to, statements (qualified to the best knowledge of the party providing the estoppel) that this Agreement is in full force and effect without default (or if a default exists, the nature of such default and any curative action which should be undertaken to cure same), the remaining term of this Agreement, and -13- 1363744v.14 DEL255 /16000 such other matters reasonably requested by the party(ies) to receive the certificate. Any such certificate on behalf of the Town shall be executed by the Mayor of the Town. Section 23. Applicable Law. This Agreement shall be construed under the laws and court decisions of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. Section 24. Recordation of Agreement. A copy of this Agreement in recordable form may be recorded by either party in the Real Property Records of Tarrant County, Texas. Section 25. Entire Agreement. This Agreement constitutes the entire agreement between the parties regarding the subject matter contained herein, supersedes any prior understanding or written or oral tax abatement agreements or representations between the parties regarding the matters contained herein, and can be modified only by a written instrument subscribed to by both parties. This Agreement may be executed in multiple counterparts, each of which shall be considered an original for all purposes. Section 26. Successors and Assi Subject to the provisions of Section 6 hereof, this Agreement shall be binding on, and shall inure to the benefit of, the legal representatives, successors and assigns of the Town and Deloitte LLP. Section 27. Further Assurances. The Town and Deloitte LLP shall timely take all actions reasonably necessary and /or appropriate to carry out the terms and provisions of this Agreement, and to aid and assist each other in carrying out the terms and provisions of this Agreement to allow for the full development of the Project. (SIGNATURE PAGES FOLLOW) -14- 1363744v.14 DEL255/16000 EXECUTED to be effective as of the date first set forth above. ATTEST: Kim Sutter, TRMC, Town Secretary APPROVED AS TO FORM By: L. Stanton Lowry Town Attorney TOWN OF WESTLAKE, TEXAS, a municipal corporation By:_ Name: Title: Joe C. Hennig Interim Town Manager, DELOITTE LLP, a Delaware limited liability partnership By:_ Name: Title: Signature Page to Economic DeheloPment Agreement 1363744v.14 DEL255 /16000 STATE OF TEXAS § COUNTY § This instrument was acknowledged before me on , 2008, by Scott Bradley, the Mayor of the Town of Westlake, Texas, a municipal corporation, on behalf of said municipal corporation. STATE OF TEXAS COUNTY Notary Public in and for the State of Texas Printed /Typed Name of Notary My Commission Expires: This instrument was acknowledged before me on , 2008, by , in his/her capacity as a partner /principal of Deloitte LLP, on behalf of said partnership. Notary Public in and for the State of Texas Printed/Typed Name of Notary My Commission Expires: Notary Signature Page 1363744v.14 DEL255/16000 EXHIBIT W TOWN OF WESTLAKE RESOLUTION NO. 06-19 A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, ADOPTING AN ECONOMIC DEVELOPMENT INCENTIVE POLICY. WHEREAS, the Town of Westlake, Texas, relies upon the generation of Sales and Use Taxes for basic city operations; and WHEREAS, the Town of Westlake aggressively pursues sales tax producing enterprises that meet the Town's high development standards; and WHEREAS, Chapter 312 of the Texas Tax Code requires that guidelines and criteria be adopted by the Board of Aldermen before entering into any Economic Development Agreement that provides reimbursement of taxes; and WHEREAS, Chapter 380 of the Texas Local Govenunent Code allows the Board of Aldermen to create policies for economic development and any related grants or incentives. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERAIEN OF THE TOWN' OF WESTLAKE, TEXAS: SECTION 1: The above findings are hereby found to be true and correct and are incorporated herein in its entirety. SECTION 2: The Board of Aldermen of the To Am of Westlake, Texas, adopts the attached Exhibit A, Town of Westlake Economic Development Incentive Policy and directs the Town Manager to immediately submit an Economic Development Agreement to the Board of Aldermen consistent with the terms of this policy. PASSED AND APPROVED ON THIS 8th DAY OF MAY, 2006. ATTEST: e2-� ZA:ia� Scott Brad fey., Mayor Y Secretary n Dwinnell, To-Am PRO F RM: L. anton o o Attorney Trent O. Petty, A Manager EXHIBIT A RESO NO. 06 -19 Town of Westlake Economic Development Incentive Policy Section I. General Purpose and Objectives The Town of Westlake, Texas, ( "Town ") is committed to the promotion and retention of high quality development in all parts of the To Am as part of an overall effort to improve the quality of life for its residents. Since these objectives can be served, in part, by the expansion of its commercial business, retail, and mixed use base, the Town will, on a case -by -case basis, give consideration to providing tax abatements, economic development grants, loans, and other incentives (collectively referred to as "Incentives ") as may be allowed by law as stimulation for selected economic development within the community. It is the policy of the Town that consideration will be provided in accordance with the criteria set forth in this document. Nothing within this policy shall imply or suggest that the Town is under any obligation to provide Incentives to any applicant. All applicants ( "Applicants ") for any Incentives shall be considered on a case - by -case basis. Section II. Applicability This Economic Development Incentive Policy (the "Policy ") establishes guidelines and criteria for Incentives as allowed for by the provisions of Chapter 312 of the Texas Tax Code, and other economic grants, loans, or incentives as authorized by Chapter 380 of the Texas Local Government Code, the Development Corporation Act, Article 5190.6, Tex. Rev. Civ. Stat., Article III, Section 52 -a of the Texas Constitution, and other applicable laws. Any Incentive approved by the Town's Board of Aldermen (`Board of Aldermen ") pursuant to the Policy must be memorialized in an agreement to be executed and approved by the Town and applicant (the "Incentive Aereement"). Section III. Tax Abatement Criteria A. Any application for tax abatement shall be reviewed and approved or disapproved by the Board of Aldermen and, if applicable, consider the recommendations of the Westlake Development Corporation and /or the Westlake 4A Corporation. In general, the application NN,ill be considered based upon the following: • The `value added' to the community by the Applicant's proposed project, • The likelihood of the development of the proposed project without abatements; • The comparison of the use of abatements versus the use of other potential incentives. B. Specific considerations for approving tax abatement applications will be based upon the degree to which the proposed project: • Furthers the goals and objectives of the Town as expressed in the Town's Comprehensive Plan, Planned Development District Ordinances, and infrastructure plans; • Impacts the Town's costs and ability to provide municipal services; • Impacts the local environment, housing market, and available infrastructure; • Offers potential for long term payback in tax and/or other revenues for the Town's investment; • Potentially stimulates other desirable economic development within the Town. C. Term of the Abatement — A tax abatement may be granted for a maximum of ten years. The term of the abatement may be granted for a lesser number of years depending upon the anticipated `value added' to the Town. Section IV. Value of the Project The amount of the Incentive will be determined by the Board of Aldermen based upon the merits of the economic development project (the "Project "), including, but not limited to, the factors referenced in paragraph III. B. (above) and the following specific economic considerations: total capital investment; added employment; generation of other tax revenues. Incentives may be granted only for the additional value of eligible property improvements described in the Project and listed in the executed tax abatement agreement. Target thresholds are established as expected qualifying levels for abatement consideration as indicated in paragraphs A and B as follows: A. For New Businesses or Development - The Project must be reasonably expected to produce an added value of five million dollars ($5,000,000) in real and personal property improvements within the Town of Westlake; or to create a minimum of 200 full - time jobs, or to generate annual sales tax revenues to the Town of at least $100,000. B. For Expansion or Modernization of Existing Businesses or Development - The Project must be reasonably expected to produce an added value of two million dollars ($2,000.000) in real and personal property improvements within the Town, or to create a minimum of 100 full time jobs, or to generate additional annual sales tax revenues to the Town of at least $50.000. Section V. Inspection, Verification and Incentive Aloditication The terms of an Incentive Agreement shall include the Town's right to: 2 (a) require the submission of an annual certification of compliance for the property receiving an Incentive; (b) conduct an on -site inspection of the project in each year during the life of the Incentive to verify compliance with the terms of the Agreement and the Policy; and (c) reduce or eliminate the Incentive if the applicant has failed to comply with the requirements of the Incentive Agreement. Section VI. Evaluation Upon completion of the Project, the Town shall no less than annually evaluate each Project receiving an abatement to insure compliance with the terms of the agreement. Any incidents of non - compliance will be reported to all affected taxing units. Section VII. Severability and Limitation In the event that any section, clause, sentence, paragraph or any part of this Policy shall, for any reason, be adjudged by an), court of competent jurisdiction to be invalid, such invalidity shall not affect, impair, or invalidate the remainder of the guidelines and criteria in this Policy. Section VIII. Expiration and modification This Policy is effective upon the date of its adoption and will remain in force for two years, at which time Incentive Agreements created pursuant to its provisions will be reviewed by the Board of Aldermen to determine whether the objectives of the Policy are being achieved. Based upon that review, this Policy may be modified, renewed or eliminated. However, any Incentive Contracts created pursuant to this Policy will remain in effect according to their respective terms without regard to any change to this Policy unless mutually agreed by the parties. Section IX. Economic Development Grants, Loans, and Other Incentives A. Any application for economic development grants, loans, and other incentives shall be reviewed and approved or disapproved by the Board of Aldermen. In the review process. the Board of Aldermen vArill. if applicable, consider the recommendations of the Westlake Development Corporation and /or the Westlake 4A Corporation. Any such economic development grants, loans, and other incentives may come from any one or combination of the following: . • Grants or loans as authorized by Chapter 380 of the Texas Local Government Code; • The general Sales and Use taxes of the Town; • Sales and Use taxes collected pursuant to section 4A and /or 4B of Article 5190.6. Tex. Rev. Civ. Stat.; and /or 3 • Any other lawful source of revenue of the Town including, but not limited to, bond or other debt financing which further the purpose of economic development. B. To be eligible to apply and qualify for consideration of any grants, loans, and other incentives under this Section, the applicant must submit documentation, and enter into an Incentive Agreement, which indicates the specific details of the Project and compliance with the Policy. H:%BoyIe- LoN +n'J\'est Lake\mI- agreements''."I -agr econ de% inc pohc}.doc L, TOWN OF WESTLAKE NO. 08 -18 DESIGNATING A NEIGHBORHOOD EMPOWERMENT ZONE IN THE TOWN OF WESTLAKE, TARRANT AND DENTON COUNTIES, TEXAS; PROVIDING AN EFFECTIVE DATE; AND PROVIDING A SEVERABILITY CLAUSE. WHEREAS, the Board of Aldermen ( "Board ") of the Town of Westlake, Texas, ( "Town "), desires to promote and increase economic development in the Town, and the property described herein, pursuant to Chapter 378 of the Texas Local Government Code; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That the facts and recitations contained in the preamble of this resolution are hereby found and declared to be true and correct and are incorporated herein in their entirety. SECTION 2: That the Board of the Town hereby finds and determines that: (a) That the creation of a Neighborhood Empowerment Zone ( "Zone ") would promote an increase in economic development in the Zone; (b) The property to be contained within the Zone is described in attached Exhibit "A" and incorporated herein in its entirety; (c) That the creation of the Zone benefits and is for the public purpose of increasing public health, safety and welfare of the persons in the Town, and the creation of the Zone satisfies the requirements of Section 312.202 of the Texas Tax Code. SECTION 3: That pursuant to Chapter 378 of the Texas Local Government Code, the Town hereby creates the Zone in the earlier described Exhibit "A ", attached hereto and incorporated herein. SECTION 4: That the Zone shall take effect on the 24'h day of March, 2008. SECTION 5: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Board hereby determines that it would have adopted this Resolution without the invalid provision. PASSED AND APPROVED ON THIS 24TH DAY OF MARCH, 2008. Scott Bradley, Mayor ATTEST: Kim Sutter, TRMC, Town Secretary Joe C. Hennig, Interim Town Manager APPROVED AS TO FORM: Stan Lowry, Town Attorney 2 EXHIBIT "A" RESO NO. 08-18 LEGAL DESCRIPTION PROPOSED REINVESTMENT ZONE BEING a tract of land situated in the Jesse Gibson Survey, Abstract Number 592, the G. Hendricks Survey, Abstract Number 680, and the Jesse Sutton Abstract No. 1451 and the Chas Medlin Survey, Abstract Number 1958, Tarrant County, Texas, and being situated in the Jesse Sutton Abstract No. 1154 Denton County Texas and being a portion of that certain tract of land (Tract 2) as described by deed to AIL Investment, L.P., as recorded in Volume 13275, Page 542, County Records, Tarrant County, Texas, and a portion of those tracts of land (tracts 1 & 2) as described by deed to AIL Investment, L.P., as recorded in Volume 13883, Page 335, County Records, Tarrant County, Texas, and a portion of that certain tract of land described by deed to Lakeway Land, Ltd., as recorded in Volume 13978, Page 222, County records, Tarrant County, Texas, and being more particularly described by metes and bounds as follows: BEGINNING at a point in the north line of proposed Roanoke -Dove Road where it intersects the west line of said AIL Investment tract (Volume 13883, Page 335 tract 2); THENCE N 00 008' 56 "W, 664.08 feet; THENCE S89 059'38 "W, 23.21 feet; THENCE N 00 004'20 "E, 200.04 feet; THENCE S 89 047'29 "W, 391.05 feet; THENCE N 00 009'35 "W, 461.81 feet; THENCE N 00 002'25 "W, 818.71 feet; THENCE N 43012'43"E, 127.27 feet to the beginning of a curve to the left; THENCE 320.00 feet along the arc of said curve, through a central angle of 37 °20'29 ", whose radius is 491.00 feet, the long chord of which bears N44° 49'54 "E, 314.37 feet; THENCE N 26 009'38 "E, 100.00 feet to the beginning of a curve to the right; THENCE 124.87 feet along the arc of said curve, through a central angle of 12 °54'51 ", whose radius is 554.00 feet, the long chord of which bears N32 °37'03 "E, 124.60 feet; THENCE N 39 004'28 "E, 195.82 feet; THENCE N 49 047'43 "W, 121.24 feet to the beginning of a curve to the right; THENCE 551.83 feet along the arc of said curve, through a central angle of 27 °15'27 ", whose radius is 1159.96 feet, the long chord of which bears N32'50'1 I "W, 546.64 feet; C &B Job No. 015007.102 AGS j \job \015 007102 \sur \wp \leg\reinvestmet ACF #2359 March 18, 2008 Page 1 of 3 THENCE N 00 041'56 "W, 1439.38 feet; THENCE S 75 035'35 "E, 821.08 feet to the beginning of a curve to the right; THENCE 371.00 feet along the arc of said curve, through a central angle of 48 018'39 ", whose radius is 440.00 feet, the long chord of which bears S51'26'1 6"E, 360.11 feet; THENCE S 27 016'56 "E, 214.64 feet to the beginning of a curve to the left; THENCE 880.40 feet along the arc of said curve, through a central angle of 90 °04'39 ", whose radius is 560.00 feet, the long chord of which bears S72 °19' 15 "E, 792.49 feet; THENCE N 62 °38'25 "E, 197.55 feet to the beginning of a curve to the left; THENCE 1075.06 feet along the are of said curve, through a central angle of 54 °23'23 ", whose radius is 1132.50 feet, the long chord of which bears S59 °20'00 "E, 1035.15 feet; THENCE S 86031'42 "E, 199.20 feet to the beginning of a curve to the left; THENCE 554.97 feet along the arc of said curve, through a central angle of 15 °16'08 ", whose radius is 2082.50 feet, the long chord of which bears N85 °50' 14 "E, 553.33 feet; THENCE N 78012'1 0"E, 800.32 feet; THENCE S 09 034'05 "E, 892.93 feet; THENCE S 16 042'32 "W, 1518.12 feet; THENCE S 00 053'35 "E, 573.79 feet; THENCE S 11 °28'06 "E, 564.14 feet; THENCE S 70 °37'22 "W, 349.16 feet to the beginning of a curve to the right; THENCE 253.38 feet along the arc of said curve, through a central angle of 19 °21'24 ", whose radius is 750.00 feet, the long chord of which bears S80 °18'04 "W, 252.18 feet; THENCE S 89 058'46 "W, 1261.17 feet; THENCE 89 000'39 "W, 1253.71 feet; THENCE S 87 042'32 "W, 718.15 feet; THENCE S 88 040'26 "W, 272.28 feet to the POINT OF BEGINNING and containing 387.95 acres of land, more or less. C &B Job No. 015007.102 ACF #2359 AGS March 18, 2008 j\ job\ 015007102 \sur \wp \leg\reinvestmet Page 2 of 3 THIS LEGAL DESCRIPTION IS FOR CONTRACT PURPOSES ONLY AND SHOULD NOT BE USED FOR THE CONVEYANCE OF REAL PROPERTY. C &B Job No. 015007.102 ACF #2359 AGS March 18, 2008 j\ job\ 015007102 \sur \wp \leg\reinvestmet Page 3 of 3 v' r / Proposed / Q Reinvestment ' I . I zone ► \ �o � o o d r o �ww M1 TOWN OF WESTLAKE RESOLUTION NO. 08 -20 APPROVING AN ECONOMIC DEVELOPMENT AGREEMENT WITH DELOITTE LLP AND ITS PROCUREMENT COMPANY FOR ESTABLISHMENT OF A PROCUREMENT COMPANY ( "PROCO ") IN THE TOWN OF WESTLAKE PURSUANT TO THE TOWN OF WESTLAKE ECONOMIC DEVELOPMENT POLICY AND TAX ABATEMENT POLICY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, The Board of Aldermen adopted an Economic Development Incentive Policy by Resolution 06 -19 on May 8, 2006, and a commercial /industrial tax abatement reinvestment zone by Ordinance 589 on March 24, 2008; and WHEREAS, pursuant to Chapter 380 of the Texas Local Government Code the Board of Aldermen of the Town of Westlake, Texas (the "Board ") has adopted a program for granting public funds in the form of sales tax rebates to promote local economic development, and stimulate business and commercial activity in the Town of Westlake, Texas (the "Town "); and WHEREAS, pursuant to said policy and Chapter 380 of the Texas Local Government Code the Board finds the economic development incentive offered in the attached Agreement will promote the economic development and stimulate business and commercial activity in the Town. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That the Economic Development Agreement by and between the Town of Westlake, Texas, and Deloitte LLP and its Procurement Company attached hereto as Exhibit "A" and incorporated herein for all purposes is hereby approved; and further authorizes the Town Manager to execute the contract on behalf of the Town of Westlake, Texas. SECTION 2: That this Resolution shall take effect from and after its final date of passage, and it is accordingly so ordered. PASSED AND APPROVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, ON THIS 24th DAY OF MARCH, 2008. Scott Bradley, Mayor ATTEST: Kim Sutter, TRMC, Town Secretary Joe C. Hennig, Interim Town Manager APPROVED AS TO FORM: L. Stanton Lowry, Town Attorney STATE OF TEXAS § ECONOMIC DEVELOPMENT INCENTIVE § AGREEMENT COUNTY OF TARRANT § This Economic Development Incentive Agreement (this "Agreement ") dated March 2008, is made by and among the Town of Westlake, Texas (the "Town ") and , a Texas (the "Procurement Company ") and wholly owned subsidiary of Deloitte LLP, Delaware limited liability partnership ( "Deloitte LLP "), each acting by and through their respective authorized officers and representatives. WITNESSETH: WHEREAS, Deloitte LLP (or one of its Affiliates), as the owner of land located within the Town, intends to develop and construct one (1) or more buildings on land located within the Town, and the development and construction on such land is expected significantly to enhance the economic and employment base of the Town; and WHEREAS, in order to maintain and enhance the commercial and industrial economic and employment base of the Town and Tarrant County, the Board found that it was in the best interest of the citizens of the Town to enter into that certain Economic Development Agreement with Deloitte LLP dated March 24, 2008 (the "Economic Development Agreement "), pursuant to which the Town agreed to provide Deloitte LLP certain economic incentives in accordance with the Economic Development Policy, the Tax Abatement Policy, the Tax Code and the LGC (as such terms are defined in the Economic Incentive Agreement); and WHEREAS, the Town and Deloitte LLP agreed in the Economic Development Agreement that Deloitte LLP has the right to establish a Procurement Company; and WHEREAS, the Procurement Company is engaged in the business of purchasing and reselling taxable items; and WHEREAS, Deloitte LLP advised the Town that a contributing factor that would induce Deloitte LLP to locate its innovation and learning center within the Town would be an agreement by the Town to provide an economic development grant to the Procurement Company; and WHEREAS, the Town desires to attract new retail business to the Town that will generate additional sales tax revenue for the Town; and WHEREAS, the attraction of new retail business to the Town will promote economic development, stimulate commercial activity, generate additional sales tax and enhance the tax base and economic vitality of the Town; and WHEREAS, the Town has adopted programs for promoting economic development; and WHEREAS, the Town is authorized by Article III, Section 52 -a of the Texas Constitution, TEX. LOC. GOVT CODE §380.001 and the Development Corporation Act of 1979, Article 5190.6 of the TEX. REV. CIV. STAT. to provide economic development grants to promote local economic development and to stimulate business and commercial activity in the Town; and WHEREAS, the Town has determined that making an economic development grant to Deloitte LLP or one of its Affiliates in accordance with the terms and conditions set forth in this Agreement will further the objectives of the Town, benefit the Town and the Town's inhabitants and promote local economic development and stimulate business and commercial activity in the Town; NOW THEREFORE, in consideration of the foregoing and the premises, mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby covenant and agree as follows: ARTICLE I DEFINITIONS Section 1.01. For purposes of this Agreement, each of the following terms shall have the meaning set forth herein unless the context clearly indicates otherwise: "Affiliate" shall mean any entity that owns or controls, is owned or controlled by, or is under common ownership or control with, Deloitte LLP, or any entity the ownership of which is substantially the same as Deloitte LLP. "Commencement Date" shall mean April 1, 2008. " Deloitte LLP" shall mean Deloitte LLP or one of its Affiliates. "Effective Date" shall mean the last date on which all of the parties hereto have executed this Agreement. "Grant" shall mean periodic payments to the Procurement Company from lawfully available funds, in the amount set forth in Section 3.01. "Retail Center" shall mean the Procurement Company's local office in the Town at which the Procurement Company operates a business of purchasing and reselling Taxable Items in the Town. "Sales Tax Receipts" shall mean the Town's receipts from the State attributable to the collection of Total Town Sales and Use Tax by the Procurement Company. The parties expressly acknowledge and agree that the sales and use tax receipts described herein are being used only as a measurement of the Town's payment of grants through the use of general funds. "State" shall mean the State of Texas and all taxing authorities thereof, including, without limitation, the Comptroller of Public Accounts of the State of Texas. -2- 1376487v.1 DEL255 /16000 "Taxable Items" shall have the same meaning assigned by Chapter 151, TEX. TAX CODE, as amended. "Total Town Sales and Use Taxes" shall mean the Town's Sales and Use Taxes plus the half percent (.5 %) 4B economic development sales tax authorized by art. 5190.6, Vernon's Texas Civil Statutes, Section 4B. and the half percent (.5 %) additional municipal sales and use tax (commonly known as the "sales tax for property tax relief') authorized by Section 321.507 of the Tax Code imposed by the Town (it being expressly understood that sales and use taxes are being used only as a measurement of the Town's grant of lawfully available funds to Deloitte LLP pursuant to Chapter 380 of the LGC). "Town's Sales and Use Taxes" shall mean the local sales and use tax imposed by the Town other than the half percent (.5 %) 4B economic development sales tax authorized by art. 5190.6, Vernon's Texas Civil Statutes, Section 4B. and the half percent (.5 %) additional municipal sales and use tax (commonly known as the "sales tax for property tax relief') authorized by Section 321.507 of the Tax Code imposed by the Town (it being expressly understood that sales and use taxes are being used only as a measurement of the Town's grant of lawfully available funds to Deloitte LLP pursuant to Chapter 380 of the LGC). Capitalized terms not otherwise defined above shall have the meaning given such capitalized terms in this Agreement. ARTICLE II TERM Section 2.01. Term. The initial term of this Agreement shall begin on the Effective Date and continue through April 1, 2018, when it shall renew without any action by either party, and on each ten (10) year anniversary thereafter (each such date a "Renewal Date "), for successive ten (10) year terms; provided, however, that on any Renewal Date, either the Procurement Company or the Town may elect to terminate this Agreement by providing the other party not less than thirty (30) days' written notice of termination, as further described in Section 5 of this Agreement. Any reference to the "Term" of this Agreement shall include the initial term and any renewal terms, but shall mean the actual term during which this Agreement is in effect. ARTICLE III ECONOMIC DEVELOPMENT GRANT Section 3.01. Grant. During the Term, subject to the Procurement Company's continued satisfaction of all of its obligations under the terms and conditions of this Agreement, the Town agrees to provide Deloitte LLP with an economic development grant from lawfully available funds, payable as provided herein, in an amount equal to seventy -five percent (75 %) of the Sales Tax Receipts for each calendar quarter during the Term (each, a "Grant" and, collectively, the "Grants "). -3- 1376487v.1 DEL255 /16000 Section 3.02. Grant Funds. The Town shall not be required to pay any Grant until such time as the Town has received Sales Tax Receipts from the State relating to the calendar quarter for which such Grant payment is due. The Town will file all documentation required to be filed by it and make such requests to the State as necessary to obtain all Sales Tax Receipts in a timely manner and will not take any action that causes the State to delay remittance of Sales Tax Receipts for any calendar quarter during the Term. Section 3.03. Grant Payment. The Town shall, within sixty (60) days after the later to occur of. (i) receipt by the Town of Sales Tax Receipts from the State, and (ii) receipt of the sales and use tax information requested by the Town from the State pursuant to Section 4.01, pay to Deloitte LLP or one of its Affiliates, or as directed by Deloitte LLP such Affiliate(s), a Grant in an amount equal to seventy -fifty percent (75 %) of the Sales Tax Receipts for such calendar quarter. Notwithstanding the foregoing, if the Town fails to request the Procurement Company's sales and use tax information from the State within the time period set forth in Section 4.01, then in such case the Town shall pay the related Grant to Deloitte LLP or one of its Affiliates within sixty (60) days after receipt of the Sales Tax Receipts related to such Grant. Section 3.04. Amended Returns. In the event the Procurement Company files an amended sales and use tax return or report, or if additional sales and use tax is due and owing by the Procurement Company to the State, and, as a result, Sales Tax Receipts for a previous calendar quarter are increased, then the Grant payment due from the Town shall be increased accordingly for the calendar quarter immediately following the Town receiving Sales Tax Receipts from the State attributable to such increase. This Section 3.04 shall survive the termination of this Agreement. Section 3.05. Refunds. In the event the State determines that the Town erroneously received Sales Tax Receipts, or that the amount of sales and use tax paid to the Town exceeds the correct amount of sales and use tax owed to the Town, and, as a result, a previous Grant paid to Deloitte LLP exceeded the amount actually due to Deloitte LLP (calculated based on the State's determination) (any such excess amount being referred to herein as an "Excess Grant "), then Deloitte LLP shall, within thirty (30) days after receipt of a written notice from the Town specifying the amount of the Excess Grant, repay the amount of the Excess Grant to the Town. In lieu of repaying the amount of the Excess Grant to the Town, Deloitte LLP may instruct the Town in writing to reduce the amount of the Grant payment for the calendar quarter immediately following Deloitte LLP's receipt of the Town's written notice of the Excess Grant by the amount of the Excess Grant. In such case, the Town shall deliver a written notice to the Deloitte LLP acknowledging the amount of the Excess Grant that has been deducted from any Grant payment. As a condition precedent to Deloitte LLP's obligation to refund the amount of an Excess Grant to the Town or authorize the Town to reduce the Grant payment, Deloitte LLP shall have received a copy of the State's written determination, if any, or such other evidence to substantiate the amount of the Excess Grant as is acceptable to Deloitte LLP in its reasonable discretion. Should Deloitte LLP cause a refund to occur through its own action, Deloitte LLP will notify the Town immediately upon receiving the determination of the refund request from the State. -4- 1376487v.1 DEL255 /16000 ARTICLE IV PROCEDURES RELATING TO GRANTS Section 4.01. Town Request for Information from State. Within 10 days after each due date for payment of sales and use tax from the Procurement Company to the State (each a "Due Date "), the Town will request from the State all documentation relating to the Total Town Sales and Use Tax paid by the Procurement Company on such Due Date. Deloitte LLP shall provide the Town with a Waiver of Sales Tax Confidentiality, which authorizes the State to release to the Town sales and use tax information pertaining to the Procurement Company during the Term. Such documentation may include the following, if it has been filed by the Procurement Company with the State, and nothing in this Section 4.01 shall obligate Deloitte LLP or the Procurement Company to prepare or provide to the Town any documentation not required to be filed with the State: (a) Information regarding the amount of sales and use tax collected and paid to the State by the Procurement Company as a result of the sale of Taxable Items by the Procurement Company at the Retail Center; (b) A copy of all sales and use tax returns and reports, sales and use tax prepayment returns, direct payment permits and reports, including amended sales and use tax returns or reports, filed by the Procurement Company for the previous calendar quarter showing sales and use tax collected (including sales and use tax paid directly to the State pursuant to a direct payment certificate) by the Procurement Company for the sale of Taxable Items consummated at the Retail Center; (c) A copy of all direct payment and self - assessment returns, including amended returns, filed by the Procurement Company for the previous calendar quarter showing sales and use tax paid for the sale of Taxable Items by the Procurement Company consummated at the Retail Center; (d) A summary of the sales of Taxable Items by the Procurement Company consummated at the Retail Center which resulted in sales and use tax paid, and copies of receipts for those purchases, in the event that the Procurement Company is ineligible or unable to file direct payment or self - assessment returns for the previous calendar quarter; and (e) Information concerning any refund or credit received by the Procurement Company of sales or use tax paid or collected by the Procurement Company (including any sales and use tax paid directly to the State pursuant to a direct payment permit) which has previously been reported by the Procurement Company as sales and use tax paid or collected. Section 4.02. Confidentiality. The Town agrees to keep all information and documentation received from the State pursuant to this Section 4.02 (collectively, "Confidential Tax Information') confident. The Town will only provide access to the Confidential Tax Information to its employees on a "need -to- know" basis. The Town will use the Confidential Tax -5- 1376487v.1 DEL255 /16000 Information solely for the purposes of determining the amount of each calendar quarter's Grant and the amount of other Grants related to the Retail Center that are dependent on the Confidential Tax Information and for no other purpose, and the Town will not (and will cause any person to whom access to the Confidential Tax Information is granted not to), without the Deloitte LLP's prior written authorization, directly or indirectly, intentionally or inadvertently: (a) disclose to any other person, use or exploit the Confidential Tax Information (other than as expressly permitted above), (b) discuss Deloitte LLP or its affairs with any person other than Deloitte LLP's representatives, (c) copy, photograph, photocopy, reduce to writing or otherwise reproduce or duplicate the Confidential Tax Information or (d) take any other actions which would be detrimental to the Deloitte LLP. Deloitte LLP's Waiver of Sales Tax Confidentiality is solely for the limited purpose of allowing an appropriate set of Town officials to verify the amount of the Town's obligations under this Agreement. The Town's obligations under this Section 4.02 shall survive the termination of this Agreement. ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PARTIES Section 5.01. No Violation. The Town hereby represents and warrants to Deloitte LLP that neither its execution and performance of this Agreement, nor its consummation of the transactions contemplated hereby (including, without limitation, the payment of Grants under the terms and conditions hereof), will (a) conflict with, or result in a breach of, the terms, conditions or provisions of, or constitute a default under, any agreement, indenture or other instrument under which the Town is bound, or (b) violate or conflict with any judgment, decree, order, statute, rule or regulation of any court or any public, governmental or regulatory agency or body having jurisdiction over the Town or its properties, assets or conduct. Furthermore, the Town hereby agrees that any claim made by a third party against the Town with respect to Town Sales Tax received by, or payable to, the Town from the State (including, without limitation, Grants payable to Deloitte LLP hereunder) (other than claims from the State, which shall be handled under Section 3.05) shall be paid or resolved by the Town from funds other than those committed to be paid to Deloitte LLP as Grants hereunder. Section 5.02. Publicity and Disclosures. The parties covenant and agree that neither party shall make any press release or public disclosure, either written or oral, regarding the transactions contemplated by this Agreement without the prior knowledge and consent of the other party; provided, that the foregoing shall not prohibit any disclosure to attorneys, accountants, investment bankers or other agents of the parties assisting the parties in connection with the transactions contemplated by this Agreement. ARTICLE VI TERMINATION Section 6.01. Termination of this Agreement. This Agreement shall terminate upon any one of the following: -6- 1376487v.1 DEL255/16000 (a) On any Renewal Date on or after April 1, 2018, by either party, upon thirty (30) days' written notice to the other party; (b) By Deloitte LLP, immediately upon written notice to the Town, if the Town fails to pay any Grant within the applicable time period provided under this Agreement; and (c) Immediately upon written notice from Deloitte LLP to the Town, upon any breach by the Town of its obligations under Section 4.02 hereof with respect to Confidential Tax Information. Section 6.02. Effect of Termination. Upon a termination of this Agreement, the Town shall remit all Grants relating to Sales Tax Receipts for the sale of Taxable Items by the Procurement Company at the Retail Center sold prior to the effective date of such termination. The rights, responsibilities and liabilities of the Parties under this Agreement shall be extinguished upon the applicable effective date of termination of this Agreement, except for any obligations that accrue prior to such termination or as otherwise expressly provided herein. ARTICLE VII MISCELLANEOUS Section 7.01. Binding Agreement; Assignment. The terms and conditions of this Agreement are binding upon the successors and permitted assigns of the parties hereto. This Agreement may not be assigned without the express written consent of non - assigning party, except that Deloitte LLP may assign this Agreement to one of its Affiliates without obtaining the Town's consent. Section 7.02. No Joint Venture. It is acknowledged and agreed by the parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the parties. Neither party shall have any authority to act on behalf of the other party under any circumstances by virtue of this Agreement. Section 7.03. Authorization. Each party represents that it has full capacity and authority to grant all rights and assume all obligations that are granted and assumed under this Agreement. Section 7.04. Notice. Any notice required or permitted to be delivered hereunder shall be deemed received three (3) days thereafter sent by United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the party at the address set forth below (or such other address as such party may subsequently designate in writing) or on the day actually received if sent by courier or otherwise hand delivered. If intended for Town, to: Town Manager Town of Westlake 3 Village Circle, Suite 202 Westlake, Texas 76262 -7- 1376487v.1 DEL255 /16000 With a copy (which shall not constitute notice) to: Stan Lowry, Town Attorney Town of Westlake c/o Boyle & Lowry LLP 4201 Wingren, Suite 108 Irving „Texas 75062 If intended for Deloitte LLP: With a copy to: If intended for the Procurement Company: IM14 With a copy (which shall not constitute notice) to: Attn: With an additional copy (which shall not constitute notice) to: Attn: Section 7.05. Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter covered in this Agreement. There is no other collateral agreement, oral or written, between the parties that in any manner relates to the subject matter of this Agreement. Section 7.06. Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of Texas, without giving effect to any conflicts of law rule or principle that might result in the application of the laws of another jurisdiction. Subject to Section 7.11, venue for any disputes regarding this Agreement, the transactions contemplated hereby or the liabilities or obligations imposed hereunder shall be in any State District Court located in Tarrant County, Texas. Section 7.07. Amendment. This Agreement may be amended or modified only by a written instrument signed by all the parties hereto. -8- 1376487v.1 DEL255 /16000 Section 7.08. Legal Construction. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention of the parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision shall be added to this Agreement which is legal, valid and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. Section 7.09. Recitals. The recitals to this Agreement are incorporated herein. Section 7.10. Counterparts. This Agreement may be executed in counterparts. Each of the counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one and the same instrument. Section 7.11. Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the termination of this Agreement shall survive termination. [The next following pages are signature pages.] -9- 1376487v.1 DEL255 /16000 EXECUTED on this day of , 2008. TOWN OF WESTLAKE, TEXAS .0 Joe C. Hennig, Interim Town Manager ATTEST: IM Kim Sutter, TRMC, Town Secretary APPROVED AS TO FORl'& i L. Stanton Lowry, Town Attorney EXECUTED on this day of March, 2008. DELOITTE LLP, a Delaware limited liability partnership By: _ Name: Title: Signature Page to Economic Development Incentive Agreement 1376487v.1 DEL255 /16000 THE PROCUREMENT COMPANY'S ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF TARRANT This instrument was acknowledged before me on the day of 2008 by , being the of , a subsidiary of Deloitte LLP, a Delaware limited liability partnership, on behalf of said limited partnership. Notary Public, State of Texas [SEAL] 1376487v.1 DEL255!16000 Waiver of Sales Tax Confidentiality Date: I authorize the Comptroller of Public Accounts to release sales ,tax information pertaining to the taxpayer indicated below to the Town of Westlake, Texas. I understand that this waiver applies only to our place of business located in Westlake, Texas. Name of Taxpayer as Shown on Texas Sales Tax Permit Name Under Which Taxpayer is Doing Business (dba or Outlet Name) Taxpayer Mailing Address Physical Location of Business Permitted for Sales Tax in Westlake, Texas Texas Taxpayer ID Number Tax Outlet Number [TITLE], Authorized Signature Procurement Company, Telephone Number The authorized signature must be an owner, officer, director, partner, or agent authorized to sign a Texas Sales Tax Return. If you have any questions concerning this waiver of confidentiality, please contact the Texas Comptroller of Public Accounts at 800.531.5441. 1376487v.1 DEL255116000 EXHIBIT "A' TOWN OF WESTLAKE RESOLUTION NO. 06-19 A RESOLUTION OF THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS, ADOPTING AN ECONOMIC DEVELOPMENT INCENTIVE POLICY. WHEREAS, the Town of Westlake, Texas, relies upon the generation of Sales and Use Taxes for basic city operations; and WHEREAS, the Town of Westlake aggressively pursues sales tax producing enterprises that meet the Town's high development standards; and WHEREAS, Chapter 312 of the Texas Tax Code requires that guidelines and criteria be adopted by the Board of Aldermen before entering into any Economic Development Agreement that provides reimbursement of taxes; and WHEREAS, Chapter 380 of the Texas Local Government Code allows the Board of Aldermen to create policies for economic development and any related grants or incentives. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE TOWN OF WESTLAKE, TEXAS: SECTION l: The above findings are hereby found to be true and correct and are incorporated herein in its entirety. SECTION 2: The Board of Aldermen of the Town of Westlake, Texas, adopts the attached Exhibit A. Town of Westlake Economic Development Incentive Policy and directs the Town Manager to immediately submit an Economic Development Agreement to the Board of Aldermen consistent with the terms of this policy. PASSED AND APPROVED ON THIS 8th DAY OF MAY, 2006. ATTEST: X5�— zdt4e Scott Brad fey, Mayor ()'ain Dwinnell, T Secretary APPRO F RM: L. anton o o Attorney Trent O. Petty; Manager EXHIBIT A RESO NO. 06 -19 Toovn of Westlake Economic Development Incentive Policy Section I. General Purpose and Objectives The Town of Westlake, Texas, ( "Town ") is committed to the promotion and retention of high quality development in all parts of the Town as part of an overall effort to improve the quality of life for its residents. Since these objectives can be served, in part, by the expansion of its commercial business, retail, and mixed use base, the Town will, on a case -by -case basis, give consideration to providing tax abatements, economic development grants, loans, and other incentives (collectively referred to as "Incentives ") as may be allowed by law as stimulation for selected economic development within the community. It is the policy of the Town that consideration will be provided in accordance with the criteria set forth in this document. Nothing within this policy shall imply or suggest that the Town is under any obligation to provide Incentives to any applicant. All applicants ( "Applicants ") for any Incentives shall be considered on a case - by -case basis. Section II. Applicability This Economic Development Incentive Policy (the "Policy ") establishes guidelines and criteria for Incentives as allowed for by the provisions of Chapter 312 of the Texas Tax Code, and other economic grants, loans, or incentives as authorized by Chapter 380 of the Texas Local Government Code, the Development Corporation Act, Article 5190.6, Tex. Rev. Civ. Stat., Article III, Section 52 -a of the Texas Constitution, and other applicable laws. Any Incentive approved by the Town's Board of Aldermen ( "Board of Aldermen ") pursuant to the Policy must be memorialized in an agreement to be executed and approved by the Town and applicant (the "Incentive Agreement "). Section III. Tax Abatement Criteria A. Any application for tax abatement shall be reviewed and approved or disapproved by the Board of Aldermen and, if applicable, consider the recommendations of the Westlake Development Corporation and/or the Westlake 4A Corporation. In general, the application will be considered based upon the following: • The `value added' to the community by the Applicant's proposed project; • The likelihood of the development of the proposed project without abatements; • The comparison of the use of abatements versus the use of other potential incentives. B. Specific considerations for approving tax abatement applications will be based upon the degree to which the proposed project: • Furthers the goals and objectives of the Town as expressed in the Town's Comprehensive Plan, Planned Development District Ordinances, and infrastructure plans; • Impacts the Town's costs and ability to provide municipal services; • Impacts the local environment, housing market, and available infrastructure; • Offers potential for long term payback in tax and/or other revenues for the Town's investment; • Potentially stimulates other desirable economic development within the Town. C. Term of the Abatement — A tax abatement may be granted for a maximum of ten years. The term of the abatement may be granted for a lesser number of years depending upon the anticipated `value added' to the Town. Section IV. Value of the Project The amount of the Incentive will be determined by the Board of Aldermen based upon the merits of the economic development project (the "Project "), including, but not limited to, the factors referenced in paragraph III. B. (above) and the following specific economic considerations: • total capital investment; • added employment; • generation of other tax revenues. Incentives may be granted only for the additional value of eligible property improvements described in the Project and listed in the executed tax abatement agreement. Target thresholds are established as expected qualifying levels for abatement consideration as indicated in paragraphs A and B as follows: A. For New Businesses or Development - The Project must be reasonably expected to produce an added value of five million dollars ($5,000,000) in real and personal property improvements within the Town of Westlake; or to create a minimum of 200 full - time jobs, or to generate annual sales tax revenues to the Town of at least $100,000. B. For Expansion or Modernization of Existing Businesses or Development — The Project must be reasonably expected to produce an added value of two million dollars ($2,000,000) in real and personal property improvements within the Town, or to create a minimum of 100 full time jobs, or to generate additional annual sales tax revenues to the Town of at least $50,000. Section V. Inspection, Verification and Incentive Modification The terms of an Incentive Agreement shall include the Town's right to: 2 (a) require the submission of an annual certification of compliance for the property receiving an Incentive; (b) conduct an on -site inspection of the project in each year during the life of the Incentive to verify compliance with the terms of the Agreement and the Policy; and (c) reduce or eliminate the Incentive if the applicant has failed to comply with the requirements of the Incentive Agreement. Section VI. Evaluation Upon completion of the Project, the Town shall no less than annually evaluate each Project receiving an abatement to insure compliance with the terms of the agreement. Any incidents of non - compliance will be reported to all affected taxing units. Section VII. Severability and Limitation In the event that any section, clause, sentence, paragraph or any part of this Policy shall, for any reason, be adjudged by any court of competent jurisdiction to be invalid, such invalidity shall not affect, impair, or invalidate the remainder of the guidelines and criteria in this Policy. Section VIII. Expiration and Modification This Policy is effective upon the date of its adoption and will remain in force for two years, at which time Incentive Agreements created pursuant to its provisions will be reviewed by the Board of Aldermen to determine whether the objectives of the Policy are being achieved. Based upon that review, this Policy may be modified, renewed or eliminated. However, any Incentive Contracts created pursuant to this Policy will remain in effect according to their respective terms without regard to any change to this Policy unless mutually agreed by the parties. Section IX. Economic Development Grants, Loans, and Other Incentives A. Any application for economic development grants, loans, and other incentives shall be reviewed and approved or disapproved by the Board of Aldermen. In the review process, the Board of Aldermen will, if applicable, consider the recommendations of the Westlake Development Corporation and /or the Westlake 4A Corporation. Any such economic development grants, loans, and other incentives may come from any one or combination of the following: • Grants or loans as authorized by Chapter 380 of the Texas Local Government Code; • The general Sales and Use taxes of the Town; • Sales and Use taxes collected pursuant to section 4A and /or 4B of Article 5190.6, Tex. Rev. Civ. Stat.; and /or 3 • Any other lawful source of revenue of the Town including, but not limited to, bond or other debt financing which further the purpose of economic development. B. To be eligible to apply and qualify for consideration of any grants, loans, and other incentives under this Section, the applicant must submit documentation, and enter into an Incentive Agreement, which indicates the specific details of the Project and compliance with the Policy. HABoyle- Lowry'Nest Lake41- agreementsM -agr econ dev inc policy.doc TOWN OF WESTLAKE, TEXAS MINUTES OF THE TOWN OF WESTLAKE, TEXAS BOARD OF ALDERMEN PRE -BOARD MEETING March 10, 2008 PRESENT: Mayor Scott Bradley and Aldermen Larry Corson, Kevin Maynard, Don Redding, Pete Steger, and Bob Timmerman. ABSENT: None. STAFF PRESENT: Town Manager Joe Hennig, Town Attorney Stan Lowry, Town Secretary Kim Sutter, DPS Director Don Wilson, Facilities and Recreation Director Troy Meyer, Director of Planning and Development Eddie Edwards, and Executive Assistant Ginger Awtry. 1. CALL TO ORDER. Mayor Bradley called the pre -board meeting to order at 5:22 p.m. 2. EXECUTIVE SESSION. Mayor Bradley recessed the pre -board meeting of the Board of Aldermen at 5:23 p.m., as he read the following item to be discussed in executive session: A. The Board will conduct a closed session under Texas Government Code section 551.087 to discuss economic development negotiations. Mayor Bradley convened the executive session at 5:23 p.m. The executive session adjourned at 5:43 p.m. 3. RECONVENE MEETING. Mayor Bradley reconvened the regular meeting of the Board of Aldermen at 5:44 p.m. Town of Westlake Board of Aldermen page 2 of 2 Pre -Board Meeting March 10, 2008 4. DISCUSSION REGARDING OIL AND GAS DRILLING IN WESTLAKE. As follow -up to previous discussions, Planning and Development Director Edwards presented a map depicting the potential drilling sites if a setback of 600 and / or 1000 feet were desired by the Board. Alderman Timmerman expressed his concern with regard to radioactive waste from oil and gas drilling sites, and strongly encouraged the Board to consider the long term effects of radioactive contamination in and around drilling sites when establishing a setback. Alderman Timmerman added that the areas of contamination have been reported as far out as 300 feet from a drill site. Discussion ensued with regard to establishing the setbacks, monitoring and inspection of drill sites, and the need to address the clean up at a site, including radioactive waste, when drilling is complete. 5. DISCUSSION REGARDING A SECOND WATER SOURCE. This item was not discussed. 6. REVIEW OF REGULAR AGENDA ITEMS. This item was not discussed. 7. ADJOURNMENT. There being no further business to come before the Board, Mayor Bradley declared the pre - board meeting adjourned at 6:01 p.m. APPROVED BY THE BOARD OF ALDERMEN ON MARCH 24, 2008. Scott Bradley, Mayor ATTEST: Kim Sutter, TRMC, Town Secretary MINUTES OF THE TOWN OF WESTLAKE, TEXAS BOARD OF ALDERMEN REGULAR MEETING March 10, 2008 PRESENT: Mayor Scott Bradley and Aldermen Larry Corson, Kevin Maynard, Don Redding, Pete Steger, and Bob Timmerman. ABSENT: None. OTHERS PRESENT: Interim Town Manager Joe Hennig, Town Attorney Stan Lowry, Town Secretary Kim Sutter, DPS Director Don Wilson, Facilities and Recreation Director Troy Meyer, Planning and Development Director Eddie Edwards, and Executive Assistant Ginger Awtry. 1. CALL TO ORDER. Mayor Bradley called the meeting to order at 7:01 p.m. 2. CITIZENS' PRESENTATIONS. There was no one present wishing to address the Board. 3. HEAR A REPORT FROM THE FACILITIES AND RECREATION DIRECTOR CONCERNING PROPOSED PROJECTS FROM PARENT SUPPORT GROUPS. Facilities and Recreation Director Meyer addressed the Board concerning proposed projects at the Westlake Academy Campus: - Install football goals on soccer fields; - Create more storage space in teacher's lounge; - Utilize storage room on north end of gym; - Add picnic table in outside garden on north side of campus. - Install shades or tint over west and upper windows in the gym to address glare issue. Mr. Meyer advised that these items have been requested by a variety of parent groups and funding has been pledged through those groups. Town of Westlake Board of Aldermen Regular Meeting March 10, 2008 Page 2 of 5 Additionally, Mr. Meyer advised that a center column will be installed between the wooden doors on the building to address recurring problems with the current rod locking system. Interim Town Manager Hennig recognized Mr. Meyer for his service to the school and advised the Board that staff will continue to evaluate the suggestions brought forth by the parent groups and, if feasible, implement suggestions. Alderman Corson inquired if an office is the best use of the space in the gym. Facilities and Recreation Director Meyer responded that, because of the configuration of the space, he felt the space would be best used for storage. 4. CONDUCT A PUBLIC HEARING AND CONSIDER AN ORDINANCE APPROVING AN APPLICATION FOR AN AMENDMENT TO PLANNED DEVELOPMENT 1 (PD- 1) BY AMENDING ORDINANCE 202, WHICH CREATED THE ZONING DISTRICT FOR (PD -1), OWNED BY MAGUIRE PARTNERS - SOLANA LP, IN THE WESTLAKE /SOUTHLAKE ADDITION NO. l; ADDING ADDITIONAL ACREAGE TO PD -1, APPROXIMATELY 84.25 ACRES OF LAND IN THE C.M. THROOP SURVEY, ABSTRACT NO. 1510 AND THE W. MEDLIN SURVEY, ABSTRACT 1958, TARRANT COUNTY, TEXAS; AND APPROXIMATELY 85.91 ACRES OF LAND IN THE C. M. THROOP SURVEY, ABSTRACT NO. 1510, THE W. MEDLIN SURVEY, ABSTRACT NO. 1958, THE WILLIAM PEA SURVEY, ABSTRACT NO. 1246 AND THE JOSEPH HENRY SURVEY, ABSTRACT NO. 742, TARRANT COUNTY, TEXAS; GENERALLY LOCATED AT THE SOUTHEAST CORNER OF SH 114 AND PRECINCT LINE ROAD, OWNED BY MAGUIRE PARTNERS - SOLANA LAND LP. Interim Town Manager Hennig introduced the item. Mr. Hennig explained that it is the desire of the applicant to have the property (184.32 acres — currently zoned "O" Office) governed by the same regulations as the current PD -1. Additionally, Mr. Hennig advised the Board that the applicant is also requesting a change to the height restriction to permit a higher maximum building height of 735 MSL (currently 700 MSL). Mr. Hennig stated that the Planning and Zoning Commission approved the case unanimously on February 28, 2008, and heard no opposition to the case. Director of Planning and Development Edwards addressed the Board regarding the case. Mr. Edwards advised that the primary differences of the current "O" Office Park zoning and the "PD -1" zoning classification is 1) allowable floor area ratios; 2) allowable building height (due to changes in the elevation of the grade); and 3) allowable uses. Mayor Bradley opened the public hearing. Mr. Tom Allen, Partner, and Mr. Mike Silliman, Vice President of Leasing, of Maguire Partners, were present to address question regarding the case. Town of Westlake Board of Aldermen Regular Meeting March 10, 2008 Page 3 of 5 Alderman Corson expressed his concern with the allowable uses on the property should the zoning be changed from "O" Office Park to the "PD -1" Planned Development and inquired if the Board is comfortable with the allowable uses under "PD -1 ". Discussion ensued with regard to the allowable uses under the "O" Office Park zoning district and the "PD -1" allowable uses and the desire of the Board to manage the allowable uses. Mayor Bradley stated that it was never the intent of the Board to allow retail in the subject area. After lengthy discussion, it was the consensus of the Board to proceed with the case with the condition that only "O" Office Park zoning uses be permitted in the area 600 feet north of the north right of way line of Dove Road. Town Attorney Lowry stated that a section would be added to the ordinance as follows: "Provided, however, that the area depicted in Exhibit `B" shall only be allowed those uses in the "O" zoning district in the Town's Comprehensive Zoning Ordinance." There being no other requesting to speak, Mayor Bradley closed the public hearing. MOTION: Mayor Pro Tem Redding made a motion to adopt Ordinance No. 588, amending Ordinance No. 202, and providing that uses in the "O" Office Park zoning classification apply to the area 600 feet of the north right of way of Dove Road. Alderman Timmerman seconded the motion. The motion carried by a vote of 5 -0. 5. CONSIDER A RESOLUTION ACCEPTING THE DEDICATION OF RIGHT OF WAY (ROW) NECESSARY FOR THE EXPANSION OF FM 1938 FROM MAGUIRE PARTNERS - SOLANA LAND LP. Interim Town Manager Hennig introduced the item, and expressed his appreciation to Maguire Partners for their efforts, and more specifically as they relate to the FM 1938 expansion project. MOTION: Alderman Corson moved to approve Resolution 08 -15, accepting the dedication of right of way necessary for the expansion of FM 1938 from Maguire Partners - Solana Land LP. Alderman Steger seconded the motion. The motion carried by a vote of 5 -0. 6. CONSIDER A RESOLUTION RELATING TO THE GIVING OF NOTICE OF INTENTION TO CREATE A REINVESTMENT ZONE TO FINANCE IMPROVEMENTS WITHIN THE ZONE; AUTHORIZING AND DIRECTING OTHER ACTIONS PRELIMINARY TO THE CREATION OF THE PROPOSED REINVESTMENT ZONE; AND CONTAINING FINDINGS RELATING TO THE FOREGOING SUBJECT. Town of Westlake Board of Aldermen Regular Meeting March 10, 2008 Page 4 of 5 Interim Town Manager Joe Hennig introduced the item and advised that the formal creation of the reinvestment zone will come before the Board on March 24, 2008. MOTION: Alderman Corson made a motion to approve Resolution 08 -16, as presented. Mayor Pro Tem Redding seconded the motion. The motion carried by a vote of 5 -0. 7. HEAR A STATUS REPORT ON CONSTRUCTION OF ARTS AND SCIENCES CENTER BUILDING. Interim Town Manager Hennig introduced the item and advised that the due date for the request for qualifications (RFQ) is March 20, 2008. Mr. Hennig advised the Board that staff will contact the members of the building committee to set up a meeting and present a recommendation for March 31 or April 1, 2008. 8. CONSENT AGENDA. Mayor Bradley introduced the item and asked for a motion. A. Review and approve minutes of Board of Aldermen special meetings held on February 23, 2008; B. Review and approve minutes of the Board of Aldermen pre -board and regular meetings held on February 25, 2008; C. Review and approve any outstanding bills. MOTION: Alderman Steger made a motion to approve the consent agenda as presented. Alderman Corson seconded the motion. The motion carried by a vote of 5 -0. 9. EXECUTIVE SESSION Mayor Bradley recessed the regular meeting of the Board of Aldermen meeting at 8:10 p.m., as he read the following item to be discussed in executive session: A. The Board will conduct a closed session under Texas Government Code section 551.074 to discuss personnel matters, specifically to deliberate regarding the appointment of a Town Manager. Mayor Bradley convened the executive session at 8:14 p.m. The executive session adjourned at 8:59 p.m. 10. RECONVENE MEETING. Mayor Bradley reconvened the regular meeting of the Board of Aldermen at 9:00 p.m. Town of Westlake Board of Aldermen Page 5 of 5 Regular Meeting March 10, 2008 11. EXECUTIVE SESSION ACTION. No action was taken. 12. ADJOURNMENT. There being no further business, Mayor Bradley adjourned the meeting at 9:01 p.m. APPROVED BY THE BOARD OF ALDERMEN ON MARCH 24, 2008. Scott Bradley, Mayor ATTEST: Kim Sutter, TRMC, Town Secretary TOWN OF WESTLAKE Invoices Received: 03/03/08 thru 03/16/08 For Review by Board on 03/24/08 VENDOR 817 - 163 -1736 03012008 175.56 100 45315 11 T1 Internet Line for Town Offices AT &T 817 - 430 - 0941 -2 02292008 516.90 100 45305 11 Town Telephone Service 70% of Town's 50% allocation Banc of America Leasing 010199896 257.61 100 44302 11 100% Copier Lease DP3520 Admin Boyle & Lowry 1 12254 4,826.25 100 43310 11 Legal Fees - Town Period ending 02/25/08 Clarence West 1924 193.00 100 43305 11 Le al Fees - Telecom /ROW Coalition of Cities Diego's - Solana CR030508 100.42 100 46106 11 Purchase of hospitality items for 02/29/08, Mayor's Roundtable reception held at the Westlake History Museum Graham Associates 080228 660.00 1001 43215 1 11 Development activities: DRC meetings with Hillwood Joe Hennig 03032008 4,424.00 100 43335 11 Town Manager Services at 28% Northwest Metro port 3791 22.00 100 45830 11 Monthly Luncheon - Mayor Bradley Northwest Metro port 3792 22.00 100 45830 11 Monthly Luncheon - Joe Henni Office Depot 421283445 -001 64.34 100 46105 11 2 cases/copy paper Office Depot 421549447 -001 4.04 100 46105 1 11 Notebook Todd Wood ER091107 85.00 100 46190 11 Bereavement flowers for Leonard family (Re- issuing due to lost check #7769) Todd Wood ER091107 306.78 100 46106 11 Hospitality items (Re- issuing due to lost check #7769) Total Administration 11,657.90 Graham Associates 080228 2,040.00 100 46125 12 Mapping activities: Revision /update of Town website map Total Building 2,040.00 Alliance Regional News 02292008 53.33 100 45405 13 Public Ad: For PD -1 (Solana) Amendment to enlarge Northwest Metroport 3791 22.00 100 45830 13 Monthly Luncheon - Kim Sutter Total Town Secretary 75.33 Flower Mound Fire Dept. 2007MF/W01 1,500.00 100 43336 14 EMS Management Fee for FY2007 -2008 Home Depot 21749 7.59 100 44210 14 Funnel, splice tape & WD -40 Jackson Supply 022508 274.34 100 44209 14 Cleaning Supplies /Products for the Fire Station John H. Ansohn 2008CE/W01 2,376.00 100 43336 14 EMS Continuing Education fee for FY 2008 -2008 John H. Ansohn 2008MD/W01 1,500.00 100 43336 14 EMS Medical Direction fee for FY 2008 -2008 Matheson Tri -Gas 581488 82.90 100 46615 14 Medical Sup lies Praes Accountability Systems 651 6.75 100 46215 14 7/8 x 2 7/8 sin plus freight for Fire Station Rece t Pharmacy 221564 145.32 100 46615 14 Medical Supplies: 28 /tubes flexi set Rece t Pharmacy 221633 24.00 100 46615 14 Medical Supplies: 4 /Loraze am Rece t Pharmacy 221634 1 215.11 100 46615 14 Medical Supplies: various Rece t Pharmacy 222080 440.86 100 46615 14 Medical Supplies: various Roanoke Auto Supply 589351 23.18 100 46215 14 2 /Gal of oil Southeastern Emergency 233240 89.36 100 46615 14 Adult training, heartstart onsite toolkit, carbon fiber oxygen & child airway trainer Southeastern Emergency 233482 1,368.66 100 46615 14 Medical Supplies: Carbon Fiber oxygen & Child airway trainer Terminix 03102008 46.00 100 43337 14 Extermination Services - Fire Station Verizon 8173374722 03042008 119.11 100 45305 14 Fire Station Tele hone Total Fire Dept. 8,219.18 Page 1 of 4 3/19/2008 3:23 PM TOWN OF WESTLAKE Invoices Received: 03/03/08 thru 03/16/08 For Review by Board on 03/24/08 VENDOR NAME INVOICE • DEPI DESCRIPTION Accurint 1081941- 20080229 590.00 100 46165 15 Back round Searches Amanda DeGan ER030508 194.93 100 48525 15 Mileage for Training Clinic on 02/20/08 AT &T 817 - 163 - 2194 -1 03012008 231.12 100 45315 15 T1 Internet Line for Court Offices 100% AT &T 817 - 491 -8623 02292008 38.98 100 45305 15 Court - Alarm Line Bradley L. Bradley 03012008 2,541.66 1001 43330 15 Judge Services for the month of March 2008 ECI Video 0000035415 -1 98.00 100 46165 15 Audio Visual Repair Office Depot 42161194 -001 191.90 100 46105 15 Rubberbands, kleenex, copy paper, pens, labels & water bottles Total Court 3,886.59 Graham Associates 080228 770.00 100 43214 16 Drainage activities: Preparation of MS4 Stormwater Permit Application Total Public Works 770.00 ECI Video 0000035537 -1 493.00 100 45901 17 Audio Visual Repair Hadden Landscaping 27080 1,977.30 1001 43348 17 lFebruary Landscape Maintenance for Municipal Complex Hadden Landscaping 27169 87.50 100 43344 17 February irrigation inspection @ Dove Road & Triangle Hadden Landscaping 27170 22.36 100 43349 17 February Landscape Maintenance for Triangle /Dove Road (50% to HOA Hadden Landscaping 27401 1,977.30 100 43348 17 March Landscape Maintenance for Municipal Complex Hadden Landscaping 27489 87.50 100 43344 17 March irrigation inspection @ Dove Road & Triangle Humphrey & Assoc 65559 530.65 100 44218 17 1 Monthly service charge & material for lighting maintenance Humphrey & Assoc 65559 65.00 100 44213 17 Labor charge Identitec 000 - 208 -07 192.00 100 46190 17 Town Signs: Dir. Of Planning & Develop., Map room, Town Manager, Conf. A, Conf. B & Finance Dept. Identitec 947- 208 -63 285.00 100 46190 17 Signs: Dir. of HR & Admin. Service & 2 /service vehicles parking only Infassure 29407 405.00 100 44213 17 Data to floor plugs at Academy Lesco OF086520 681.94 100 43337 17 Fire ant treatment - campus Lesco 42CC5954 273.04 100 43348 1 17 lWeed control for Soccer field Lesco 49612EBC 133.04 100 43348 1 17 Weed control for Soccer field Louis Funderburg 006707 50.00 100 43348 17 Insecticide on playing fields Nextel 392123723 -040 105.50 100 45310 17 Mobile Phone charges for Troy Meyer 12/27/07 - 01/26/08 Nextel 392123723 -041 110.52 100 45310 17 Mobile Phone charges for Troy Meyer 01/27/08- 02/26/08 Office Depot 421283445 -001 48.54 100 46105 17 CD's with jewel cases SchoolDude.com S- 010062 1,246.13 100 43405 17 New software for work orders stem Summit Electric Supply 9000679880 67.62 100 44213 17 Lights for Gym TDlndustries 0000580623 2,100.54 100 43347 17 HVAC systems TDlndustries NTS1019806 2,781.50 100 44219 17 New damper & caps on boilers TDlndustries NTS1022996 435.90 100 45904 17 Installed new water cooler at school - Pod B Texas Turf grass Assoc. 0313200 65.00 100 46150 17 Regular 2008 Membership dues Triple R Locksmith 31037 24.00 100 44212 17 Keys made for cleaning services Total Facilities /Grounds 14,245.88 Office Depot 421283445 -001 11.22 100 46105 18 Air duster STW, Inc. 03112008 185.00 100 44310 18 Consulting services & system support Todd Wood ER031308 59.24 100 45830 18 SPHR Exam materials /HR reference book Todd Wood ER031308 10.10 100 45825 18 Mileage to /from Academy (pool car unavailable 03/07/08 & 03/10/08 Total Finance 265.56 Page 2 of 4 3/19/2008 3:23 PM TOWN OF WESTLAKE Invoices Received: 03/03/08 thru 03/16/08 For Review by Board on 03/24/08 VENDOR NAME INVOICE • DEP1 DESCRIPTION Hadden Landscaping 27079 1,220.83 100 43349 19 February Landscape Maintenance for Glenwyck Trail 50% to HOA Hadden Landscaping 27264 333.28 100 44306 19 Cemetery Maintenance Hadden Landscaping 27400 1,220.83 100 43349 19 March Landscape Maintenance for Glenwyck Park Trails 50% to HOA Hadden Landscaping 27490 22.36 100 43343 19 March Landscape Maintenance for Triangle/Dove Road 50% to HOA Hadden Landscaping 27500 269.00 1 100 43349 19 Mow, Weedeat, clean up back area of Park by back pond Total Parks /Recreation 3,066.30 Kaleidoscope 20080034 37.50 100 43405 20 Postini Filtering & Antivirus software Kaleidoscope 20080036 1,045.00 100 43267 20 Administrative support service Total IT 1,082.50 AT &T 817 - 430 - 0941 -1 02292008 738.42 199 13020 0 Due from WA - Telephone 50% Boyle & Lowry 4 12254 701.25 199 13020 0 Legal Fees - Academy Period ending 02/25/08 Jackson Supply 021208 505.20 199 13020 0 Cleaning Supplies /Products for the Academy: can liners, hand soap, multifold towels & tissue paper Jackson Supply 021208a 99.44 199 13020 0 Cleaning Supplies /Products for the Academy: Roll towel & center pull towel Jackson Supply 021408 396.00 199 13020 0 Cleaning Supplies /Products for the Academy: Rubbermaid 16 cubic foot truck Jackson Supply 022608 305.37 199 13060 0 Cleaning Supplies /Products for the Academy: Windex, roll towel, multifold towels & tissue paper Jackson Supply 022808 437.59 199 13060 0 Cleaning Supplies /Products for the Academy: can liners, multifold towel & tissue paper Jackson Supply 030308 84.42 199 13060 0 Cleanin Su lies /Products for the Academy: hand soap Jackson Supply 031108 172.23 199 13060 0 Cleaning Supplies /Products for the Academy: Dial complete, floor/carpet sweep, lobby dust pan & broom & floor sign Lowe's 27827 20.64 199 13020 0 Dowel rod for paper holder @ Academy Petty Cash 02272008 19.00 199 13020 0 6 /Dial Soap & 4 /Softsoa Total Academy Fund 3,479.56 AT &T 817 - 430 - 0941 -4 02292008 110.76 220 45305 11 Visitor Fund Telephone 15% of Town's 50% allocation AT &T 817 -491 -3450 02292008 77.05 220 43505 11 Internet line for Historical Board Museum Identitec 947 - 208 -64 150.00 220 44306 11 Sign: Roanoke I.O.O.F. Cemetery sign Joe Hennig 03032008 3,476.00 220 43335 11 Town Manager Services at 22% Judy Thomason PR031808 306.00 220 1 43335 11 1 Contract Labor - WHPS Reprographics 400292 19.91 220 44306 11 6sets/digital bond - cemetery Due from Visitor Fund 4,139.72 ,Boyle & Lowry 3 12254 1,361.25 410 16600 0 Legal Fees - Arts & Science Building Period ending 02/25/08 Due from Capital Projectsl 1,361.25 Page 3 of 4 3/19/2008 3:23 PM TOWN OF WESTLAKE Invoices Received: 03/03/08 thru 03/16/08 For Review by Board on 03/24/08 VENDOR 817 - 430 - 0941 -3 02292008 110.76 500 45305 16 Utility Fund Telephone 15% of Town's 50% allocation Chateau Home Builders 1- 4160 -2 183.81 500 20204 0 Utility Billing Refund for: 2207 Kingfisher Drive Chateau Home Builders 1- 5205 -1 688.53 500 20204 0 Utility Billing Refund for: 2006 Brazos Court City of Keller 002 - 2008200 -003 59,277.00 500 48810 16 FY 2008: Principal Payment - Keller Overhead Storage City of Keller 002- 2008200 -003 60,790.27 500 48811 16 FY 2008: Interest Payment - Keller Overhead Storage Data Prose 47881 215.43 500 44135 16 Utility Billing Processing for February Cycle Hillwood CR022908 1,116.50 500 48820 16 Debt Service - Hillwood area (February 2008 Hillwood CR022908 1,587.75 500 48821 16 Debt Service - Town area (February 2008 Jarrod Greenwood CR090407 64.99 5001 45310 1 16 Mobile Phone invoice period 07/26/07 thru 08/25/07 (Re- issuing due to lost check #7620 Joe Hennig 03032008 7,900.00 500 43335 16 Town Manager Services at 50% Petty Cash 03042008 15.00 500 44140 16 Water sample Petty Cash 03072008 5.00 500 45810 16 Car Wash for the Utility truck Petty Cash 03122008 35.00 500 44140 16 Water sample Rodgers Construction Co. 08 -6209 17,042.35 500 44123 16 Payment Application Number #1: West side pump station STW, Inc. 03112008 170.00 500 44310 16 Utility Billing: allow e-mail bill & work order printing problems Texas Excavation Safety 08 -1142 39.90 500 44220 16 Message fee for February 2008 - Line Locator Tri-County Electric 150 -501 03062008 2,710.09 500 46221 16 OF Electric Service - Pump Station at 1900 Hwy 377 S Trinity River Authority BB 770 13,563.00 500 44115 16 TRA Wastewater Treatment - Billing for the month of April 2008 Due from Utility 165,515.38 Grand Total 219,805.15 Page 4 of 4 3/19/2008 323 PM