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HomeMy WebLinkAboutResolution 2000-115 amendments to bajada I and canyon pass development agreements F. ~ RODRIGUEZ, RECOP. DER RECORDED BY: DSC DEPUTX RECORDER 1212 ROOE SMARA TOWN OF MARANA ATTN: TOWN CLERK 13251 N L0N ADAMS RD MARANA AZ 85653 DOCKET: 11411 PAGE: 289 NO. OF PAGES: 27 SEQUENCE: 20002070082 10/25/2000 RES 09:58 MAIL AMOUNT PAID $ 19.00 MARANA RESOLUTION NO. 2000-115 A RESOLUTION Of THE MAYOR AND TOWN COUNCIL OF THE TOWN OF MARANA, ARIZONA, DECLARING AND ADOPTING AMENDMENTS TO THE BAJADA, PHASE I AND CANYON PASS DEVELOPMENT AGREEMENTS BETWEEN THE TOWN OF MARANA AND COTTONWOOD PROPERTIES INC. WHEREAS, the Town of Marana, has the authority to modify and/or amend existing development agreements pursuant to A.R.S. § 9-500.05(C); and WHEREAS, the Town of Marana and the predecessor in interest in title of Trust 7804 and Trust 7805 have executed a Pre-Annexation Development Agreement recorded in Docket 9211 at Page 369 in the office of the Pima County Recorder known as the "Bajada Agreement;" and WHEREAS, the Town of Marana and the predecessor in interest in title of Trust 7804 and Trust 7805 have executed an Amended and Restated Development Agreement and Intergovernmental Agreement recorded in Docket 9969 at Page 1923 in the office of the Pima County Recorder known as the "Phase I Agreement;" and WHEREAS, the Town of Marana and the predecessor in interest in title of Trust 7804 and Trust 7805 have executed a Pre-Annexation Development Agreement recorded in Docket 8776 at Page 2249 in the office of the Pima County Recorder known as the "Canyon, Pass Agreement;" and WHEREAS, The Bajada, Phase I and Canyon Pass Agreements shall be collectively referred to herein as the "Development Agreements;" and WHEREAS, Cottonwood Properties Inc. is the intended master developer of the majority of the property described and depicted in the Development Agreements; and WHEREAS, Trust 7804 and Trust 7805 are the current owners of the majority of the property depicted in the Development Agreements; and WHEREAS, the Town of Marana believes that the development of the property depicted in the Development Agreements in accordance with the amended Development Agreement, attached as Exhibit "A"and incorporated herein by reference, will directly benefit the Town of Marana and its residents through augmentation of revenues and the development of commercial and recreational facilities; and IPAGES OF THIS DOCUMENT MAY NOT REPRODUCE WELL Oil FILM. Pima County Re¢order's Office Marana Resolution No. 2000-115 Page 1 of 2 O WHEREAS, the Mayor and Council of the Town of Marana has determined that amendments to the Bajada, Phase I and Canyon Pass Development Agreements are in the best interest of the residents of Marana. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Town of Marana, Arizona, as follows: Section 1: That the amendments to the Bajada, Phase I and Canyon Pass Development Agreements, as attached hereto, be adopted. Section 2: All ordinances, resolutions, or motions and parts of ordinances, resolutions, or motions of the Council in conflict with the provisions of this Resolution are hereby repealed, effective as of the effective date of this Resolution. Section 3: If any section, subsection, sentence, clause, phrase or portion of this Resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions hereof. PASSED AND ADOPTED by the Mayor and Council of the Town of Marana, Arizona, this 24t~ day of October, 2000. ATTEST: ON Mayci~I~DB/BY SUTT , JR. 1J.(Hoct~uli, a I Attbr.~e~ and not personally i ! Marana Resolution No. 2000-115 Page 2 of 2 i i 4 i I 9 i Attachment 2 Local Examples of Resort Hotel Economic Incentives Resort City # Rooms Ritz Carlton Rancho Vistoso Oro Valley 300 Marriott Desert Ridge Phoenix 950 Westin Kierland Phoenix 750 Marriott at. Starr Pass Pima County 575 Economic Incentives l%ofRevenuesforl0 years $800,000 $6,150,000 $4,850,000 l%ofRevenuesfor20 years 0 o~ EXHIBIT A AMENDMENT TO DEVELOPMENT AGREEMENTS AMENDMENT TO DEVELOPMENT AGREEMENTS (Bajada, Phase 1 and Canyon Pass) (Amending Documents Recorded in Docket 9211 at page 369, Docket 9969 at Page 1923 and Docket 8776 at Page 2249) This Amendment (the "Amendment") is made as of ,2000, by and among the Town of Marana; an Arizona municipal corporation (the "Town"), Cottonwood Properties, Inc., an Arizona corporation ("Cottonwood"), Lawyers Title of Arizona, Inc., an Arizona corporation, as Trustee under Trust No. 7804-T ("Trust 7804") and Lawyers Title of Arizona, an Arizona corporation, as Trustee under Trust No. 7805-T ("Trust 7805"). RECITALS: A. The Town and the predecessor in title of Trust 7804 and Trust 7805 have executed a Pre-Annexation Development Agreement recorded in Docket 9211 at Page 369 in the office of the Pima County Recorder (as amended by an Amendment to Pre-Annexation Agreement) which documents shall be referred to collectively herein as the "Bajada Agreement". B. The Town and the predecessors in title of Trust 7804 and Trust 7805 have executed an Amended and Restated Development Agreement and Inter- Governmental Agreement recorded in Docket 9969 at Page 1923 in the 6ffice of the Pima County Recorder (as amended by a First Amendment, Second Amendment and Third Amendment) which documents shall be referred to collectively herein as the "Phase I Agreement". C. The Town and the predecessor in title of Trust 7804 and Trust 7805 have executed a Pre-Annexation Development Agreement recorded in Docket 8776 at Page 2249 (as amended by an Amendment to Pre-Annexation Development Agreement) which documents shall be referred to collectively herein as the "Canyon Pass Agreement". D. The Baj ada Agreement, the Phase 1 Agreement and the Canyon Pass Agreement shall be referred to collectively herein as the "Development Agreements". E. Trust 7804 and Trust 7805 are the current owners of a majority of the property described and depicted in the Development Agreements (exclusive of the District 1 Property described in the Phase 1 Agreement) and are the assignees of the Developer's rights and obligations under the Development Agreements pursuant to the Assignment and Assumption of Ancillary Contracts recorded in Docket 10437 at Page 1728 in the Office of the Pima County Recorder. Cottonwood is the intended master developer of the majority of the property described and depicted in' the Development Agreements (exclusive of the District 1 Property described in the Phase 1 Agreement) and all references to the "Developer" herein refer to Cottonwood and/or such other developer(s), if any, as the case may be, to whom Trust 7804 and Trust 7805 hereafter assign all or a portion of their rights and obligations under the Development Agreements in accordance with the provisions of the Development Agreements. F. The parties hereto desire to amend and restate portions of the Development Agreements. NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto state, confirm and agree as follows: AGREEMENT 1. Definitions. "Bajada Agreement" shall have the meaning set forth in Recital A above. "Benchmark Date" shall mean that certain date by which the Town has first received Resort Sales Tax of at least One Million Dollars ($1,000,000) during the immediately prior twelve (12) month or less period; upon achieving the Benchmark Date, the Town and the Developer shall confirm such date in writing for the convenience of measuring certain other time periods set forth herein. "Biological Opinion" shall mean a biological opinion issued by the United States Fish & Wildlife Service with respect to Dove Mountain in form and content approved in writing by the Developer. "Calculation Year" shall mean the one (1) year period between the Benchmark Date and the first anniversary thereof, and each subsequent one (1) year period fi:om armiversary to anniversary of the Benchmark Date for a term of twenty (20) years from the Benchmark Date. "Canyon Pass Agreement" shall have the meaning set forth in Recital C above. "Comparable Cities" shall mean Tucson, Phoenix and Scottsdale. "Construction Premium" shall mean the extra one percent (1%) sales tax on the construction industry adopted pursuant to Marana Ordinance No. 98.02. "Convention Visitors Bureau Costs" shall mean payments made by the Town to the Convention Visitors Bureau on account of the Resort Hotel, to provide to the Resort Hotel operator the benefits associated with membership. "Deed of Trust" shall mean that certain standard form Deed of Trust (in form and content mutually approved by the Town and the Developer) which shall encumber in first lien 2 position the real property described on the attached Exhibit C and depicted on the attached Exhibit D. "Developer" shall have the meaning set forth in Recital E above. "Development Agreements" shall have the meaning set forth in Recital D above. "Dove Mountain" shall mean all of the land area subject to the Dove Mountain Specific Plan excepting, however, the District 1 Property described in the Phase 1 Agreement. "Dove Mountain Specific Plan" shall mean the comprehensive amendment to the RedHawk Specific Plan adopted pursuant to Marana Ordinance 2000.04. "Habitat Preservation Agreement" shall mean that certain Habitat Preservation Agreement to be executed by the U.S. Fish & Wildlife Service and the Town whereby the Town shall agre~ to preserve and manage the Tortolita Park Preserve for the benefit of the pygmy owl and other wildlife, while allowing recreational, hiking, biking and equestrian opportunities. "Net Revenue" shall mean the Resort Sales Tax and Resort Construction Tax received by the Town during a Calculation Year, less the Town's expenditures for Preserve Costs and Convention Visitors Bureau Costs during such Calculation Year. "New CFD" shall mean a duly established communities facilities district approved by the Developer and the Town and encompassing a land area within the "Property" as such term is defined in the Bajada Agreement. "New CFD Costs" shall mean all costs, expenses, fees and reserves arising out of or related to the creation, establishment and initial bond funding of the New CFD, together with all interest payments made by the New CFD to its bondholders in connection with the initial bond funding of the New CFD. "Other Public Facilities" shall mean the public utilities, trails and trailhead parking which serve the Resort Hotel and/or the public as depicted on the attached Exhibit B and which are constructed pursuant to contracts bid and awarded in compliance with any applicable public bidding and contract award requirements. "Other Public Facilities Costs" shall mean all costs and expenses incurred by the Developer and/or a New CFD for the design and offsite and onsite construction of the Other Public Facilities, together with any unreimbursed New CFD Costs. "Phase 1 Agreement" shall have the meaning set forth in Recital B above. "Preserve Costs" shall mean all payments due by the Town under the Preserve Lease (including any amount bid at the public auction) as well as all direct costs and expenses incurred by the Town or paid to third parties to manage the Tortolita Park Preserve in accordance with the Habitat Preservation Agreement. i i 4 1 I 2 ? Preserve Lease shall mean that certmn 99 year lease to be executed by the Arizona State Land Department as landlord in favor of the Town as tenant for the Tortolita Park Preserve if the Town is the successful bidder at public auction. "Qualified Expenses" shall mean (i) the Other Public Facilities Costs, (ii) the Transportation Facilities Costs, (iii) any Preserve Costs paid by the Developer or its affiliates prior to the Town commencing such payments, and (iv) any consultant costs or other third party costs paid by the Developer to obtain the approval of, or satisfy the requirements of, a biological opinion issued by the U.S. Fish & Wildlife Service with respect to Dove Mountain or portions thereof and which allows for the development of the Resort Hotel. "Resort Construction Tax" shall mean all transaction privilege and sales taxes or charges (however denominated or labeled) which are received by the Town with respect to the construction of the Resort Hotel, the Transportation Facilities and the Other Public Facilities (but excluding .any Resort Sales Tax as described below). "Resort Hotel" shall mean the resort hotel facility to be located within Dove Mountain to include over 400 rooms, golf facilities and clubhouse, restaurants, meeting rooms, spa areas, ancillary retail facilities and time share facility. "Resort Sales Tax" shall mean all transaction privilege, sales, room and/or bed taxes or charges (however denominated or labeled) which are received by the Town from or with respect to the Resort Hotel and its operations, including but not limited to taxes or charges which arise out of, or are established with respect to, room charges, food and beverage sales, retail sales and sales or charges at golf facilities with respect to which a tee time or reservation agreement exists with the Resort Hotel (but excluding any Resort Construction Tax as described above). "Tortolita Park Preserve" shall mean that certain approximately 2,400 acres depicted on the attached Exhibit A. "Transportation Facilities" shall mean the public roads depicted on the attached Exhibit B and any public utilities located within or adjacent to the right-of-way for the public roads depicted on the attached Exhibit B and which are constructed pursuant to contracts bid and awarded in compliance with any applicable public bidding and contract award requirements. Transportatton Facthtxes Costs shall mean all costs and expenses incurred by the Developer and/or a New CFD for the design and construction of the Transportation Facilities, and any unreimbursed New CFD Costs. 2. Public Purposes. The parties hereto recoguize and acknowledge that the development of the property within Dove Mountain (including but not limited to development of the Resort Hotel) and the resulting augmentation of revenues and commercial and/or recreational activities upon and about Dove Mountain will directly benefit the Town and its residents. The parties hereto further acknowledge that such development makes it necessary or desirable that the Transportation Facilities and Other Public Facilities be constructed and the Preserve Lease and Habitat Preservation Agreement be established. The Town has found that the development of the property within Dove Mountain pursuant to the Dove Mountain Specific Plan and the Development Agreements as 4 t 1 0 4 amended hereby has resulted and will result in benefits to the public health, welfare and safety of the Town and its residents by (i) providing well planned development with appropriate open space and recreational areas, (ii) increasing tax and other revenues to the Town based on businesses and improvements to be constructed on the property within Dove Mountain, (iii) creating jobs through the construction and operation of new businesses to be located within Dove Mountain, (iv) providing for new public facilities as described herein, and (v) otherwise generally enhancing the Town for the benefit and economic welfare of its residents, and for these reasons the Town will take the actions described herein and will establish a funding mechanism and shall make the payments and reimbursements as described herein. 3 Preservation Lease. If the Developer requests the Town to bid at the public auction, then the Town shall bid at the public auction for the right to be the tenant under the Preserve Lease. The Town shall bid an amount equal to the minimum allowed bid and such additional amount (if any) approved by the Developer and the Town at the time of the auction. 4. ' Habitat Preservation Agreement. In the event that the Town is the successful bidder at the public auction for the Preserve Lease, then on or before execution of the Preserve Lease, the Town will also execute a Habitat Preservation Agreement with the U.S. Fish & Wildlife Service in form and content approved by the Town, the U.S. Fish & Wildlife Service and the Developer. 5. Payment of Preserve Costs. The Preserve Costs will be paid by the Developer until the Benchmark Date; fi:om and after the Benchmark Date, all Preserve Costs will be paid by the Town for the remaining term of the Preserve Lease. Upon achieving the Benchmark Date, the Town shall promptly reimburse the Developer for all Preserve Costs paid by the Developer during or on account of the twelve (12) month period immediately prior to the Benchmark Date (with the balance of any Preserve Costs previously paid by the Developer to be reimbursed pursuant to paragraph 8 hereof). 6. Security for Developer Payments. As security for the obligation of the Developer to initially pay the Preserve Costs, upon the Town's execution of the Preserve Lease and Habitat Preservation Agreement, the Developer shall cause the Deed of Trust to be executed and delivered to the Town for recording. 7. Resort Construction Tax. Commencing when the Resort Construction Tax is first received by the Town and extending for a period of twenty (20) years thereafter, the Town shall reimburse and pay to the Developer or the New CFD, as the case may be, within thirty (30) days of invoice fi.om the Developer, (but no more often than quarterly) an amount equal to the Transportation Facilities Costs, provided that such reimbursement amount shall not exceed two- thirds (2/3) of the cumulative amount of the Resort Construction Tax received by the Town. 8. Resort Sales Tax. Within thirty (30) days after the end of any Calculation Year in which the Town receives Net Revenue of at least One Million Dollars ($1,000,000), the Town shall reimburse and pay to the Developer or the New CFD, as the case may be, an amount equal to all Qualified Expenses, provided, however, that (i) such reimbursement amount for any Calculation Year shall not exceed twenty percent (20%) of the Resort Sales Tax for such Calculation Year, and (ii) no such reimbursement of Qualified Expenses pursuant to this paragraph 8 shall cause the Net Revenue to be retained by the Town for such Calculation Year to be less than One Million Dollars ($1,000,000). 9. Convention Visitors Bureau. The Convention Visitors Bureau serves the community by securing and booking convention activities for the lodging industry. The Town shall timely pay the Convention Visitors Bureau Costs. 10. Construction Premium. Commencing upon the date, if ever, that the Town shall increase the Construction Premium, and extending until twenty (20) years after the Benchmark Date, the Town shall reimburse and pay to the Developer or the New CFD, as the case may be, an amount equal to any unreimbursed Transportation Facilities Costs and then an amount equal to all costs incurred by the Developer and/or the New CFD, as the case may be, for the costs of designing or constructing any public road or unreimbursed Other Public Facilities within the Town, provided, however, that the aggregate of the reimbursements under this paragraph shall not exceed the additional .Construction Premium collected by the Town with respect to construction activity within Dove Mountain as a result of so increasing the Construction Premium. 11. Resort Bed Tax. The current rate for so called "bed taxes" within the Town and the Comparable Cities are as follows: Tucson (4% plus $1.00 per night), Phoenix (3%), Scottsdale (3%) and the Town (3%). The parties hereto recognize and acknowledge that the Resort Hotel will be competing in a statewide and a regional marketplace. The Town recognizes the importance of not placing the Resort Hotel at a competitive disadvantage with hotels in any of the Comparable Cities by increasing bed taxes in excess of the average in the Comparable Cities as such competitive disadvantage could result in a reduction of the economic benefits enjoyed by the Town and its residents (by way of tax revenues, employment opportunities and otherwise) from the operation of the Resort Hotel. Therefore, if the Town shall increase the bed tax, however denominated or labeled, (or other similar taxes that impact the Resort Hotel to a greater degree than the general community) at any time within twenty (20) years following the date the Resort Hotel first opens for business to a rate in excess of the average rate for the Comparable Cities, then an amount equal to the taxes collected from the Resort Hotel in excess of such average rate shall be paid fo the owner of the Resort Hotel upon receipt by the Town to enable the owner of the Resort Hotel to maintain its competitive position in the marketplace by increasing advertising to draw more visitors to the Town, enhancing the hotel facility, developing additional public infrastructure and otherwise. The State of Arizona or Pima County may in the future levy taxes to fund the Convention Visitors Bureau that are not levied on a uniform basis in the Town and the Comparable Cities. In the event of such levies, the portion that funds the Convention Visitors Bureau in any jurisdiction shall be added to the bed tax in that jurisdiction prior to calculating the average rate set forth above. Additionally, in determining the average rate for purposes set forth above when there is a per night amount within a jurisdiction, then the percentage rate for that jurisdiction shall be calculated by taking the total bed tax revenue in the preceding calendar year and dividing same by the total room revenue in the preceding calendar year. 12. Calculation of Resort Hotel Permit Fees. The Town shall calculate permit fees for the Resort Hotel based on the methodology and estimated construction costs in the latest edition of the Uniform Building Code, as adopted by the Town from time to time. 6 13. New CFD. The Town shall cooperate with the Developer to form the New CFD(s) to construct the Transportation Facilities and the Other Public Facilities. To the extent that a New CFD does not fund the design and construction of certain of the Transportation Facilities or the Other Public Facilities, then the Town will pay the reimbursements due hereunder directly to the Developer or its assigns and then to the New CFD. 14. Public Bidding Requirement. Reimbursements with respect to Transportation Facilities, Other Public Facilities, or other public roads or improvements provided for herein shall only be payable to the New CFD or the Developer as provided herein if the contracts for construction are bid and awarded in compliance with any applicable public bidding and contract award requirements. 15. Vested Development and Land Use Rights. The Development Agreements as amended hereby establish legally protected and vested rights for the development and use of land in Dove Mountain in a manner which is consistent with the Dove Mountain Specific Plan and the Development Agreements as amended hereby. The parties hereto acknowledge that Trust 7804, Trust 7805, Cottonwood and other owners of property within Dove Mountain have received building permits, proceeded with substantial development, expended substantial sums, incurred substantial liabilities and otherwise relied in good faith upon the Development Agreements and the Dove Mountain Specific Plan (and its predecessors); the Town hereby reaffinns its commitment to allow Trust 7804, Trust 7805, Cottonwood and other owners of property within Dove Mountain to develop in accordance with, and otherwise rely upon the enforceability of, the Dove Mountain Specific Plan, the Development Agreements and any plans heretofore or hereafter approved by the Town with respect to the Resort Hotel. Such vested development and land use rights have been established with respect to Dove Mountain by common law, contract and statutory authority (including but not limited to ARS §9-500.05 and ARS §9-500.11 ), and such rights ensure reasonable certainty, stability and fairness to the Developer and the owners of Dove Mountain. 16. Amendment of Baiada Agreement. The parties hereto acknowledge that the "Property" described in the Bajada Agreement has been annexed and the "Concgptual Master Plan" described in the Bajada Agreement has been implemented, amended and superseded by the Dove Mountain Specific Plan. Paragraph 4 of the Pre-Annexation Development Agreement recorded in Docket 9211 at Page 369 and paragraph 1 of the Amendment to Pre-Annexation Development Agreement recorded in Docket 10626 at Page 628 are hereby superseded and replaced in their entirety by the provisions of this Amendment. The provisions of this Amendment shall be deemed to amend the B ajada Agreement and all remaining terms of the Bajada Agreement not inconsistent with the provisions hereof shall remain in full force and effect. 17. Amendment of Canyon Pass Am'eement. The parties hereto acknowledge that the "Property" described in the Canyon Pass Agreement has been annexed and the "Conceptual Master Plan" described in the Canyon Pas Agreement has been implemented, amended and superseded by the Dove Mountain Specific Plan. Paragraph 3 of the Pre-Annexation Development Agreement recorded in Docket 8776 at Page 2249 and paragraph 1 of the Amendment to Pre-Aunexation Development Agreement recorded in Docket 10626 at Page 636 are hereby superseded and replaced in their entirety by the provisions of this Amendment. The provisions of this Amendment shall be deemed to amend the Canyon Pass Agreement and all remaining terms of the Canyon Pass Agreement not inconsistent with the provisions hereof shall remain in full rome and effect. 4 i 18. Amendment of Phase 1 Agreement. The parties hereto acknowledge that the "Specific Plan" described in the Phase 1 Agreement has been amended and superseded by the Dove Mountain Specific Plan. Paragraph 6.9 of the Amendment and Restated Development Agreement and Intergovernmental Agreement recorded in Docket 9969 at Page 1923 and paragraph 1 of the Third Amendment to the Amended and Restated Pre-Annexation Development Agreement and Intergovernmental Agreement recorded in Docket 10626 at Page 620 are hereby superseded and replaced in their entirety by the provisions of this Amendment. The provisions of this Amendment shall be deemed to amend the Phase 1 Agreement and all remaining terms of the Phase 1 Agreement not inconsistent with the provisions hereof shall remain in full force and effect. 19. Tracking Assistance. The Developer shall timely provide the Town from time to time with a list of all tax paying persons and entities (and shall otherwise provide the Town with such information as the Town may reasonably request) to be used in the calculation of any payments due hereunder. 20.' Miscellaneous. In the event of litigation to enforce the terms of this Agreement, the prevailing party shall be entitled to receive its reasonable attorneys' fees and costs of suit. Time is hereby made of the essence of this Agreement. The wording of this Agreement has been arrived at by negotiation between the parties, and, in the event of any ambiguity, this Agreement shall not be construed in favor of or against any party hereto on account of such party having prepared any draft or final version hereof. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and assigns. In the event any tax payment or reimbursement due and used in the calculation of any payment hereunder is adjusted or changed due to error, overpayment, underpayment or miscalculation, and as a result thereof any payment previously made hereundet: is too high or too Iow, then the Town and the Developer or the New CFD, as the case may be, shall promptly remit (or credit) to the other such amounts as are necessary to correct the underpayment or overpayment of sums due hereunder. This Agreement provides for reimbursements payable by the Town for certain costs and expenses and provides various mechanisms for the calculation and payment of such reimbursements; in no event shall the Developer or the New CFD, as the case may be, ever be reimbursed by the Town more than once for the same cost or expense. This Agreement constitutes the entire agreement between the parties and the parties expressly acknowledge that there are no other agreements or understandings in regard to this transaction other than as set forth herein or contained within other written agreements referred to herein. The recitals set forth herein are true and correct in all material respects and are incorporated herein by reference. O 8 No payment or reimbursement hereunder shall be deemed to be an assignment or pledge of tax revenue. Except as specifically set forth herein, nothing herein shall be deemed to obligate the Town, the Developer or any owner of the Property to complete all or any part of the development of the Property. If any party is required pursuant to this Agreement to give its prior written approval, consent or permission, such approval, consent or permission shall not be unreasonably delayed or withheld. Each party hereto shall from time to time execute and deliver such further instruments as the other party or its counsel may reasonably request to effectuate the intent of this Agreement, including, but not limited to, documents necessary for compliance with the laws, ordinances, rules or regulati.ons of any applicable governmental authorities. The waiver by either party of any breach of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, condition or covenant contained herein. If any provision or any portion of any provision of this Agreement or the application of any such provision or any portion thereof shall be held invalid or unenfomeable, the remaining portion of such provision and the remaining provisions of this Agreement, or the application of such provision or portion of such provision, shall not be affected thereby. This Agreement shall be construed in accordance with the laws of the State of Arizona. In the event of any dispute hereunder, exclusive jurisdiction and venue shall exist only in Pima County, Arizona. Captions and headings as set forth herein are for reference purpbses only and shall not be used in construing this Agreement. IN WITNESS WHEREOF the parties executed this Agreement the day and year written above. ATTEST: THE TOWN OF MARANA, an Arizona municipal corporation Bobby Sutton, Jr., Mayor i 1 4 i I 9 APPROVED AS TO FORM AND AUTHORITY: The foregoing Amendment has been reviewed by the undersigned attorney who has determined that it is in proper form and within the power and authority granted under the laws of the State of Arizona to the Town of Marana. Daniel J. Hochuli, Town Attorney APPROVAL BY DEVELOPER: COTTONWOOD PROPERTiES, 1NC., an Arizona corporation, TRUST 7804: LAWYERS TITLE OF ARIZONA, INC., an Arizona corporation, as Trustee under Trust No. 7804-T only, and not in its corporate capacity By: Its: By: Its: TRUST 7805: LAWYERS TITLE OF ARIZONA, INC., an Arizona corporation, as Trustee under Trust No. 7805-T only, and not in its corporate capacity agreement\139\101900 By: Its: 1 10 Exhibit A Exhibit B Exhibit C Exhibit D EXHIBITS Depiction of Tortolita Park Preserve Depiction of Other Public Facilities and Transportation Facilities Legal description of property encumbered by Deed of Trust Depiction of property encumbered by Deed of Trust 11 Approximate Scale 1' = 3 Miles WestLand Resources Inc. EXHIBIT A LOCATION MAP FOR TORTOLITA PRESERVE 2399-ACRES Preliminary Cost Estimate Resort Hotel Infrastructure and Environmental Costs Dove Mountain Blvd: 1/2 of existing CFD #2 Dove Mtn Blvd Extension (From existing end to resort road) Engineering and Inspection Grading Drainage Piping & Walls Box Culverts Paving & Curbs Potable Water (16") Reclaimed Water (12") Sewer Dry Utilities Landscaping & Irrigation Walking Trail: (8' wide) Sub-Total Dove Mountain Blvd: Quantity Unit Unit Cost Total Cost Rounded Cos 1 Is $712,791 $712,791 1,959,257 $ $0 $195,926 4,800 L.F. $35 $168,000 6 EA. $13,650 $81,900 2 EA. $233,607 $467,213 4,800 bF. $80 $384,000 4,800 L.F. $37 $178,176 4,800 L.F. $27 $131,808 N/A $0 4,800 LF. $49 $236,160 4,800 L.F. $65 $312,000 4,800 LF. Included LF. $449 $2,155,183 $2,200,000 Resort Roads: (2 Lane w/o Median) Engineering and Inspection Grading Drainage Piping & Walls Paving & Curbs Potable Water (12") Sewer Dry Utilities Landscaping & Irrigation Walking Trail: (8' wide) Subtotal (from end of Dove Mtn. Blvd., PH 3 to south PL of resort site) 1,664,276 $ $0 $166,428 6,475 LF. $19 $121,406 10 EA. $13,650 $136,500 6,475 L.F. $63 $410,515 6,475 L.F. $27 $177,804 6,475 L.F. $30 $194,250 6,475 bF. $49 $318,570 6,475 bF. $41 $268,324 6,475 L.F. $6 $36,908 $283 $1,830,704 $1,800,000 Public Utilities outside of resort parcel Engineering and Inspection Sewer (8") (Loop rd to PL) Off site sewer Water Booster Sta. (Zone E to F) Off site reclaimed water Relocate reclaimed water tank Reimburse City oversizing for reclaimed water Potable water through HH Subtotal Public Trails and Trailhead Design and Inspection Preserve boundry to north end of resort site Off Site Preserve Trail Trail Head Restroom Trail Head Parking 3,740,900 $ $0 $374,090 4,150 L.F. $30 $124,500 1LS $2,500,000 $2,500,000 1 EA. $300,000 $300,000 10,560 L.F. $40 $422,400 1LS $100,000 $100,000 1LS $70,000 $70,000 5,600 L.F. $40 $224,000 $4,114,990 668,000 $ $0 $66,800 10,800 L.F. $6 $61,560 26,400 L.F. $8 $150,480 I EA $50,000 $50,000 52,500 SF $2 $105,000 $4,100,000 i i 4 i EXHIBIT B - Page 1 Off Site Wild Burro Trail Subtotal 52,800 bF. $6 $300,960 $734,8OO $700,000 Environmental Preservation Tortolita Preserve payments prior to opening of resort 3 yr Tortolita Preserve maint prior to opening of resort 3 yr State Land Dept processing fee 432,000 % One time mitigation Fee 1 Is Processing of Environmental Permits 1 Is Subtotal $432,000 $1,296,000 $18,000 $54,000 $0 $12,960 $100,000 $100,000 $250,000 $250,000 $1,712,960 $1,700,000 Total $10,548,637 $10,500,000 Assumptions 1) This is a preliminary cost estimate. Actual costs and quantitiies may be modified based on final plans. 2) This cost estimate assumes that three years of costs related to the Preserve will be reimbursed. 3) Additional expenses such as CFD start up costs and bond holder interest expense will be incurred to construct the foregoing public infrastructure. EXHIBIT B - Page 2 Dove Mountain Resort Hotel Public Infrastructure and Environmental Costs Preliminary Cost Estimate Transportation Facilities Dove Mountain Boulevard Resort Roads Other Public Facilities Public Utilities outside of resort parcel Public Trails and Trailhead Total Total Cost $2,200,000 $1,800,000 $4,000,000 $4,100,000 $700,000 $4,800,000 Environmental Preservation Total $1,700,000 $10,500,OO0 Assumptions 1) This is a preliminary cost estimate. Actual costs and quantitiies may be modified based on final plans. 2) This cost estimate assumes that three years of costs related to the Preserve will be reimbursed. 3) Additional expenses such as CFD star[ up costs and bond holder interest expense will be incurred to construct the foregoing public infrastructure. ! 4 EXHIBIT B - Page 3 EXHIBIT "C" LEGAL DESCRIPTION PROPERTY ENCUMBERED BY DEED OF TRUST OPW Project No, 96013-602 All of those portions of Sections 15, 16, 21, and 22 of Township 11 South, Range 12 East, G&SRBM, Pima County, Arizona, more particularly described as follows: BEGINNING at the West Quarter corner of Section 21,'being a found scribed rock from which the East Quarter of said Section 21 bears South 89° 48' 34" East at 5276.90 feet; Thence North 00° 01' 56" East, along the West line of the Northwest Quarter of Section 21, a distance of 2634.58 feet to the Northwest comer of Section 21 being a found scribed rock; . Thence North 00° 00, 49" East, along the West line of the Southwest Quarter of Section 16, a distance of 800.79 feet; Thence North 45° 00' 00" East, 1594.41 feet; Thence North, 1015.18 feet; Thence North 30° 00' 00" East, 800.00 feet; Thence South 30° 00' 00" East, 745.00 feet; Thence North 60° 00' 00" East, 1206.70 feet; Thence East, 700.00 feet; Thence South 30° 00' 00" West, 850.00 feet; Thence South 60° 00' 00" East, 250.00 feet; Thence North 60° 00' 00" East, 1300.00 feet; Thence South 30° 00' 00" East, 800.00 feet; Thence East, 325.86 feet to a point On the East line of Section 16 from which the East Quarter corner bears South 00° 14' 16" East, at a distance of 79.35 feet; Thence continuing East, 229.27 feet; Thence North 60° 00' 00" East, 900.00 feet; Page 1 of 5 Thence North, 273.90 feet; Thence North 45° 00' 00" West, 521.85 feet; Thence N°rth 30° 00' 00" East, 1179.16 feet; Thence South 30° 00' 00" East, 400.00 feet; Thence East, 2534.54 feet; Thence South 30° 00' 00" West, 1469.06 feet; Thence South 45° 00' 00" West, 805.54 feet; Thence North 87° 39' 58" West, 319.60 feet; Thence South 21~ 22! 36" West, 175.33 feet; Thence South 45° 00' 52" West, 102.05 feet; Thence South 60~ 08' 12" West, 190.81 feet; Thence South 52° 17' 56" West, 176.12 feet; Thence South 33~ 23' 07" West, 142.72 feet; Thence South 77° 23' 43" West, 438.67 feet to a point of curvature; Thence Westerly along said curve to the left, having a radius of 530.00 feet and a central angle of 17~ 59' 54", an arc distance of 166.49 feet to a point of tangency; Thence South 84~ 36' 23" West, 374.33 feet to a point of curvature; Thence Westerly along said curve to the fight, having a radius of 1660.00 feet and a central angle of 08° 27' 36", an arc distance of 245.11 feet to a point of tangency; Thence North 86° 56' 01" West, 364~88 feet to a point of curvature; Thence Southwesterly along said curve to the left, having a radius of 830.00 feet and a central angle of 111° 32' 41", an arc distance of 1615.86 feet to a point; Thence'North 88° 05' 20" West on a non-tangent line, 537.29 feet; Thence South 78° 09' 26" West, 215.20 feet; Page 2 of 5 Thence South 37° 42' 27" West, 176.90 feet; Thence South 89° 43' 26" West, 488.63 feet; Thence SOuth 78° 36' 01" West, Thence South 56° 43' 37" West, Thence South 25° 54' 09" West, Thence South 10° 53' 26" East, Thence South 57° 57' 24" East, Thence North 86° 59' 31" East, Thence North 68° 15' 01" East, Thence North 46° 08' 09" East, 33O.O6 feet; 664.37 feet; 172.83 feet; 135.72 feet; 235.98 feet; 684.01 feet; 121.74 feet; 166.20 feet; Thence North 83° 28' 56" East, 517.57 feet; Thence North 72° 25' 43" East, 299.84 feet; Thence North 68° 17' 06" East, 407.30 feet; Thence North 64° 26' 20" East, 30.09 feet; Thence North 39° 15' 28" East, 134.36 feet; Thence South 18° 28' 42" East, 231.03 feet to a point of curvature; Thence Southeasterly along said curve to the left, having a radius of 1720.00 feet and a central angle of 28° 41° 22", an am distance of 861.25 feet to a point of tangency Thence South 47° 10' 04" East, 272.87 feet to a point of curvature; Thence Southeasterly along said cUrve to the right, having a radius of 1020.00 fet and a central angle of 04° 04' 33", and am distance of 72.56 feet to a point of tangency; Thence South 76° 42' 51" West, 212.39 feet; Thence South 44° 50' 23" West, 536.73 feet; Thence South 78° 44' 01" West, 187.91 feet; Page 3 of 5 Thence South 67° 31' 03" West, 520.05 feet; Thence South 50° 43' 35" West, 91.69 feet; Thence South 29° 06' 11" West, 265.62 feet; Thence South 20° 32' 17" East, 206.40 feet; Tehnce South 78° 56' 57" East, 251.60 feet; Thence South 64° 11' 32" East, 274.10 feet; Thence South 75° 29' 35" East, 510.32 feet; Tehnce South 68° 04' 07" East, 261.81 feet; Thence South 83° 09! 12" East, 544.61 feet; Thence South 45° 44' 09" East, 232.27 feet; Thence South 57° 02' 44,, East, 509.90 feet; Thence South 47° 30' 09" East, 29.94 feet; Thence South 22° 27' 10" West, 271.13 feet; Thence South 86° 35' 09" West, 225.14 feet; Tehnce South 62° 40' 43" West, 120.11 feet; Thence South 35° 50' 52" West, 702.39 feet; Thence South 02° 04' 48" West, 132.69 feet; Thence South 42° 52' 51" East, 169.38 feet; Thence North 89° 59' 44" East, 749.04 feet; Thence South 22° 57' 51" East, 142.52 feet; Thence South 50° 05' 29" East, 146.45 feet; Thence South 00° 02' 35" West, 29.73 feet; Thence North 89° 57' 25" West, 1535.67 feet to a point on the East line of the Southeast Page 4 of 5 Quarter of said Section 21; Thence North 00° 05' 36" West along said East line, 1318.42 feet to the East Quarter comer of said Section 21; Thence North 89° 48' 34" West along the South line of the Northeast Quarter of said Section 21, a distance of 2639.44 feet to the Southwest comer of said Northeast Quarter; Thence continuing North 89° 48' 34" West along the South lin. e of the Northwest Quarter of said Section 21, a distance of 2637.46 feet to the TRUE POINT OF BEGINNING; Said parcel containing 762.89 acres. REL:Ib October 20, 2000 96013\600\legals\deedoffrust. lgl i 4 i i -9 Page 5 of 5 Itl ! i 1 ! 0