Bill Text: TX SB918 | 2013-2014 | 83rd Legislature | Enrolled
Bill Title: Relating to the sale by the Brazos River Authority and regulation of certain real property in the immediate vicinity of Possum Kingdom Lake.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2013-06-14 - Effective immediately [SB918 Detail]
Download: Texas-2013-SB918-Enrolled.html
S.B. No. 918 |
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relating to the sale by the Brazos River Authority and regulation of | ||
certain real property in the immediate vicinity of Possum Kingdom | ||
Lake. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subsection (a), Section 8502.0132, Special | ||
District Local Laws Code, is amended by amending Subdivisions (2) | ||
and (5) and adding Subdivision (2-a) to read as follows: | ||
(2) "Captive Property To Be Sold" means those portions | ||
of the following tracts of real property owned by the Authority at | ||
the Lake that as of May 27, 2009, were surrounded by the Lake and | ||
property owned by a single freeholder and [ |
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1000' contour line, but does not include any portion of the | ||
following tracts that was [ |
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was [ |
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27, 2009 [ |
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(A) two tracts of land totaling 2019.86 acres, | ||
more or less, in Palo Pinto County, Texas, described in Brazos River | ||
Authority Records as Tracts 8-1-93 and 9-3-9, as such Tracts are | ||
more particularly described in an Award of Commissioners entered | ||
June 28, 1940, in the County Court of Palo Pinto County, Texas, in | ||
Cause No. 2539, styled Brazos River Conservation and Reclamation | ||
District versus Orland R. Seaman, Et Al., as the same appears on | ||
file and of record in Volume 5, Pages 414 and 419, et seq., Civil | ||
Minutes of the County Court of Palo Pinto County, Texas; and | ||
(B) a 2278.3 acre tract of land, more or less, in | ||
Palo Pinto County, Texas, described in Brazos River Authority | ||
records as Tract 11-2-46, as such tract is more particularly | ||
described in deeds recorded at Book 181, Page 325, Book 182, Page | ||
339, Book 183, Page 12, and Book 183, Page 16, in Palo Pinto County | ||
Records, Palo Pinto County, Texas. | ||
(2-a) "Close" or "Closing" means the transfer of the | ||
Authority's interest in properties described in the Subsection | ||
(d)(1) or (m)(6) survey. | ||
(5) "Offeree" means any person to whom an offer to sell | ||
Captive Property To Be Sold is to be made under this section. To | ||
qualify as an Offeree, a person must own in fee simple as of May 27, | ||
2009, the real property adjacent to the Captive Property To Be Sold, | ||
and be able to provide an attorney's opinion or other satisfactory | ||
legal documentation that such Offeree meets the qualifications of | ||
an Offeree under this subdivision. | ||
SECTION 2. Section 8502.0132, Special District Local Laws | ||
Code, is amended by amending Subsection (b) and adding Subsections | ||
(d-1), (m), and (n) to read as follows: | ||
(b) Notwithstanding any other provision of this chapter, | ||
the Authority is directed to sell all Captive Property To Be Sold in | ||
accordance with the directives of this section, including the | ||
following: | ||
(1) Within 90 days of the effective date of the Act | ||
enacting this section, the Authority shall publish a list of the | ||
parcels at the Lake that qualify as Captive Property To Be Sold and | ||
an "Application Of Intent To Purchase" form for use by the Offerees | ||
as provided by this section. | ||
(2) Each listed parcel of Captive Property To Be Sold | ||
shall be offered for sale at its fair market value to the Offeree | ||
who owns any Adjacent Land that is adjacent to that specific parcel | ||
of Captive Property To Be Sold, and each Adjacent Land owner has the | ||
right (but not the obligation) to purchase the parcel in equal | ||
proportion among those wishing to acquire same. | ||
(3) Any Offeree who desires to purchase Captive | ||
Property To Be Sold must, within 180 days of the inclusion of that | ||
property on the published list of Captive Property To Be Sold under | ||
Subdivision (1), submit a completed Application Of Intent To | ||
Purchase form to the Authority. | ||
(4) If the Authority does not receive an Application | ||
Of Intent To Purchase from an Offeree within the required time, the | ||
Offeree shall be deemed to have waived any right to purchase the | ||
subject property under this section and the Authority shall have | ||
the right to retain or sell such property as directed by the board. | ||
(5) The Authority shall accept and process all | ||
Application Of Intent To Purchase forms in the order in which they | ||
are received. | ||
(6) Any sale of property under this section must be | ||
handled as if it were a private sale for fair market value under | ||
Section 49.226(a), Water Code. | ||
(7) The fair market value of the Captive Property To Be | ||
Sold must be determined as follows: | ||
(A) Within forty-five (45) days of the | ||
Authority's receipt of the Offeree's completed Application Of | ||
Intent To Purchase and an acceptable survey as provided by | ||
Subsection (d)(1), the Authority shall provide the Offeree with an | ||
appraisal of the fair market value of the Captive Property To Be | ||
Sold dated within one year of the date of the Authority's receipt of | ||
the Application Of Intent To Purchase (the "First Appraisal"). The | ||
Authority's appraiser must be an appraiser certified under Chapter | ||
1103, Occupations Code. Within fifteen (15) days of receipt of the | ||
First Appraisal, the Offeree shall notify the Authority in writing | ||
as to whether the Offeree agrees with or disputes the fair market | ||
value set forth in the First Appraisal. If the Offeree does not | ||
dispute the fair market value as determined by the First Appraisal | ||
within such 15-day time period, then the First Appraisal shall be | ||
final and binding on all parties to establish the fair market value | ||
for the Captive Property To Be Sold. | ||
(B) If the Offeree disputes the fair market value | ||
determined by the First Appraisal, the Offeree may withdraw its | ||
application to purchase the Captive Property To Be Sold or employ a | ||
disinterested appraiser certified under Chapter 1103, Occupations | ||
Code, to conduct a second appraisal of the fair market value of the | ||
Captive Property To Be Sold (the "Second Appraisal"). The Second | ||
Appraisal must be completed and sent to the Authority not later than | ||
the 45th day after the date the Offeree notifies the Authority that | ||
the Offeree disputes the First Appraisal. If the Authority does not | ||
receive the Second Appraisal within such 45-day time period, then | ||
the Offeree's Application Of Intent To Purchase will be deemed | ||
withdrawn. | ||
(C) Within fifteen (15) days of receipt of the | ||
Second Appraisal, the Authority shall notify the Prospective | ||
Purchaser in writing as to whether the Authority agrees with or | ||
disputes the fair market value determined by the Second Appraisal. | ||
If the Authority does not dispute the fair market value as | ||
determined by the Second Appraisal within this 15-day time period, | ||
then the Second Appraisal shall be final and binding on all parties | ||
to establish the purchase price for the Captive Property To Be Sold. | ||
If the Authority timely disputes the fair market value determined | ||
by the Second Appraisal, the two appraisers (or their designated | ||
agents) shall meet and attempt to reach an agreement on the fair | ||
market value of the Captive Property To Be Sold, such meeting to | ||
occur not later than the 30th day after the date the Authority | ||
notifies the Offeree that the Authority disputes the Second | ||
Appraisal. | ||
(D) If the two appraisers reach agreement on the | ||
fair market value, within 20 days after their meeting they shall | ||
issue a report of the agreed fair market value to the Authority and | ||
to the Offeree, and this agreed fair market value shall be final and | ||
binding on all parties to establish the purchase price. If the two | ||
appraisers fail to reach agreement on or before the 20th day after | ||
the date of the meeting, then not later than the 30th day after the | ||
date of the meeting the two appraisers shall appoint a | ||
disinterested third appraiser certified under Chapter 1103, | ||
Occupations Code, to reconcile the two previous appraisals (the | ||
"Third Appraisal"). The Third Appraisal must be completed on or | ||
before the 30th day after the date of the third appraiser's | ||
appointment, and the fair market value determined by the Third | ||
Appraisal is final and binding on all parties to establish the | ||
purchase price; provided, however, the final purchase price may not | ||
be more than the fair market value determined by the First Appraisal | ||
or less than the fair market value determined by the Second | ||
Appraisal. | ||
(E) The appraisal costs must be paid by the | ||
person who requests the appraisal, except that the Offeree and the | ||
Authority shall each pay one-half of the cost of the Third Appraisal | ||
if a Third Appraisal is necessary. If the Offeree fails to pay its | ||
share of the Third Appraisal, then the Offeree's Application Of | ||
Intent To Purchase will be deemed withdrawn. | ||
(F) The timelines established in the appraisal | ||
process set forth in this subdivision may be extended on joint | ||
agreement of Authority and Offeree. | ||
(8) Closing must occur not later than the first | ||
anniversary of the effective date of the Act of the 83rd | ||
Legislature, Regular Session, 2013, amending this subsection. | ||
(d-1) Not later than 15 business days after the delivery of | ||
an Offeree's survey to the Authority required under Subsection | ||
(d)(1) or (m)(6), the Authority shall notify the Offeree that the | ||
survey is acceptable or submit in writing to the Offeree a list | ||
detailing any error in the survey that the Authority believes | ||
requires correction. If required, the survey must be corrected at | ||
the earliest convenience of the surveyor and a corrected survey | ||
delivered to the Authority. The correction process repeats until | ||
both surveys are acceptable, at which time the timetable for the | ||
appraisal process in Subsection (b)(7)(A) begins for the properties | ||
described in the Subsection (d)(1) and (m)(6) surveys. So long as | ||
the Subsection (m)(6) survey is timely delivered to the Authority, | ||
if the surveys are not both accepted by the Authority within 180 | ||
days after the effective date of the Act enacting this subsection, | ||
then the closing deadline established by Subsection (b)(8) is | ||
extended on a day-for-day basis for each day after the 180th day | ||
until both surveys are accepted by the Authority. | ||
(m) Notwithstanding any provision of this section to the | ||
contrary, a sale under this section is subject to the following | ||
requirements: | ||
(1) If on the date Closing occurs the Project Land or | ||
any portion of the Project Land has been removed from the FERC | ||
License, the Captive Property To Be Sold must include all Project | ||
Land that would have otherwise qualified as Captive Property To Be | ||
Sold except for its status as Project Land. | ||
(2) If on the date Closing occurs the Project Land or | ||
any portion of the Project Land has not been removed from the FERC | ||
License, the Authority shall convey to the Offeree a residual | ||
interest in that portion of the Project Land that would have | ||
otherwise qualified as Captive Property To Be Sold except for its | ||
status as Project Land. The residual interest automatically vests | ||
on the date that: | ||
(A) the Federal Energy Regulatory Commission | ||
approves an amendment to the FERC License removing the Project Land | ||
from the boundaries under the FERC License so that the Project Land | ||
is no longer subject to regulation by the Federal Energy Regulatory | ||
Commission; or | ||
(B) the FERC License expires and is not renewed | ||
or extended, or is otherwise terminated, and thus the Project Land | ||
is no longer subject to regulation by the Federal Energy Regulatory | ||
Commission. | ||
(3) Notwithstanding Subdivision (2), if the residual | ||
interest described by Subdivision (2) has not vested on or before | ||
August 31, 2040, then the residual interest is terminated and of no | ||
further force and effect, and the Authority shall repay to the | ||
Offeree any amount originally paid for that residual interest on or | ||
before December 1, 2040. On satisfaction of a condition described | ||
by Subdivision (2)(A) or (B) before August 31, 2040, the residual | ||
interest conveyed under Subdivision (2) is automatically effective | ||
without necessity of further documentation. As of the date the | ||
conveyance is effective, the applicable portion of the Project Land | ||
is considered to be a part of the Captive Property To Be Sold | ||
conveyed under this section and the Offeree or then-current Owner | ||
of the applicable portion of the Captive Property To Be Sold is the | ||
beneficiary of the residual interest applicable to the portion of | ||
the Project Land adjacent to such Owner's land and considered to be | ||
a part of the Captive Property To Be Sold conveyed under this | ||
section. The residual interest immediately vests in the Offeree or | ||
then-current Owner of the adjacent Captive Property To Be Sold | ||
conveyed under this section without the necessity of any additional | ||
written conveyance. | ||
(4) In the event that a sale under this subsection does | ||
not include any portion of the Project Land, or only includes a | ||
residual interest in a portion or all of the Project Land, then the | ||
Authority shall at Closing, subject to the approval of the Federal | ||
Energy Regulatory Commission, grant the Offeree an easement, | ||
subject to the FERC License, for the use of that portion of the | ||
Project Land for which the Offeree has purchased a residual | ||
interest. The Authority shall retain ownership of that portion of | ||
the Project Land and exercise control over that portion of the | ||
Project Land consistent with the FERC License and this subsection. | ||
The easement granted to the Offeree is limited to uses permitted | ||
under the terms of the FERC License, the Authority's Shoreline | ||
Management Plan, and any other Authority rules and regulations that | ||
may be adopted from time to time. | ||
(5) An appraisal of the fair market value of the | ||
Project Land, whether the Project Land has been removed from the | ||
FERC License or not, must be determined as if the applicable Project | ||
Land is not subject to the FERC License, is not part of the Federal | ||
Energy Regulatory Commission project area, is not subject to any | ||
lease agreement, is available for immediate possession and use, and | ||
may be used for any lawful purpose. | ||
(6) For each parcel of Project Land that an eligible | ||
Offeree elects to purchase under Subdivision (1), or for each | ||
parcel of Project Land in which the Offeree purchases a residual | ||
interest under Subdivision (2), the Offeree shall, not later than | ||
the 90th day after the effective date of the Act enacting this | ||
subsection, provide to the Authority a survey and calculation of | ||
the area of the parcel prepared by a licensed state land surveyor or | ||
a registered professional land surveyor in accordance with this | ||
subsection. The survey is separate from any survey prepared under | ||
Subsection (d) of Captive Property To Be Sold. | ||
(n) On or before Closing, the Authority shall deliver | ||
completed and executed documentation necessary to transfer the | ||
property conveyed from the Authority to the Offeree, and the | ||
Offeree shall deliver the purchase price and closing costs and the | ||
countersignatures on all necessary documentation. Promptly after | ||
Closing, the Offeree shall record the documents required for | ||
transferring the property in the county records where the property | ||
is located. The closing documents and funds may be held in escrow | ||
at the election of the Authority or the Offeree until all documents | ||
have been fully executed and all required funds have been | ||
delivered. | ||
SECTION 3. Chapter 8502, Special District Local Laws Code, | ||
is amended by adding Section 8502.0133 to read as follows: | ||
Sec. 8502.0133. SALE OF AUTHORITY PROPERTY ON AND | ||
ASSOCIATED WITH COSTELLO ISLAND. (a) In this section: | ||
(1) "Boat landing" means a 0.841 acre tract of land, | ||
more or less, located above the 1000' contour line as defined in | ||
Subdivision (8), described in authority records as Tract Costello | ||
Island, situated in the A. J. Smith Survey, Abstract 393, Palo Pinto | ||
County, Texas, and being a part of a tract of land purchased by the | ||
Brazos River Conservation and Reclamation District from Mrs. Hugh | ||
C. Thomas, as recorded in Volume 182, Page 142, Deed Records of Palo | ||
Pinto County. The boat landing is located wholly within the FERC | ||
Project Area. | ||
(2) "Date of decommissioning" means the effective date | ||
of the surrender of the FERC License for the Morris Sheppard Dam | ||
Project No. 1490-052 under the Order Accepting the Surrender of the | ||
License (issued December 23, 2011), 137 FERC 62,252. | ||
(3) "Costello Island" means a 260 acre tract of land, | ||
more or less, located above the 1000' contour line as defined in | ||
Subdivision (8), described in authority records as Tract Costello | ||
Island, situated in the J.W. Bunton Survey, Abstract 52, Palo Pinto | ||
County, Texas, and being a part of that parcel that is located | ||
wholly within the boundary of the lake, and being a part of a tract | ||
of land acquired by the Brazos River Conservation and Reclamation | ||
District from E.P. Costello by Court Judgment dated July 21, 1943. | ||
The portions of Costello Island owned by the authority are located | ||
wholly within the FERC Project Area. | ||
(4) "Costello Island Property" means Costello Island | ||
and the boat landing, but does not include any portion of Costello | ||
Island owned in fee simple by a person other than the authority. | ||
(5) "Fair market value" means the price that the | ||
Costello Island Property would bring in an arms-length transaction | ||
when offered for sale by one who wishes, but is not obliged, to sell | ||
and when bought by one who is under no necessity of buying it. This | ||
value shall be determined as if the Costello Island Property were | ||
not subject to the FERC License, were not located within the FERC | ||
Project Area, were not subject to any lease agreement, were | ||
available for immediate possession and use, and could be used for | ||
any reasonable purpose, subject only to the restrictions in | ||
Subsection (e). | ||
(6) "FERC License" means the order of the Federal | ||
Energy Regulatory Commission issuing a license to the authority for | ||
project number 1490-003-Texas on September 8, 1989, as such license | ||
has been renewed, extended, or amended and may be further renewed, | ||
extended, or amended at any time and from time to time, and also | ||
including the amendment to the original FERC License, which | ||
amendment was issued on May 15, 1980, to the extent incorporated or | ||
referenced in the FERC License. | ||
(7) "FERC Project Area" means that portion of | ||
authority land that is subject to the FERC License before the date | ||
of decommissioning, as the land is identified and defined in the | ||
FERC License, as may be amended at any time and from time to time, | ||
and which FERC Project Area may move or change over time due to | ||
natural forces. | ||
(8) "Lake" means Possum Kingdom Lake located in Young, | ||
Palo Pinto, Stephens, and Jack Counties. The boundary of the lake | ||
is defined by the 1000' contour line, as that contour may meander | ||
and change over time with natural forces, including erosion and | ||
accretion. The "1000' contour line" means the line running along | ||
the periphery of the lake if the surface of the lake is at an | ||
elevation of 1000 feet above mean sea level, as measured from the | ||
top of the spillway crest gates of the Morris Sheppard Dam, as such | ||
line may move and shift from time to time due to natural forces. | ||
(9) "Offeree" means the individuals or corporation, | ||
other than the authority, owning a portion of Costello Island in fee | ||
simple. | ||
(b) After the date of decommissioning, the authority shall | ||
offer for sale to the offeree the Costello Island Property. The | ||
sale shall be: | ||
(1) for not less than the fair market value as | ||
determined under Subsection (c); and | ||
(2) contingent upon the termination of any leases | ||
encumbering all or any portion of the Costello Island Property at | ||
the time of sale. | ||
(c)(1) The fair market value of the Costello Island Property | ||
shall be determined as described in this subsection. | ||
(2) Not later than 45 days after the date the authority | ||
receives the offeree's completed application of intent to purchase | ||
and an acceptable survey as provided by Subsection (d)(1), the | ||
authority shall provide the offeree with an appraisal of the fair | ||
market value of the Costello Island Property. The authority may use | ||
an existing appraisal if it is dated not more than one year before | ||
the date the authority receives the application of intent to | ||
purchase. The authority's appraiser must be certified under | ||
Chapter 1103, Occupations Code. Not later than the 15th day after | ||
the date the offeree receives the first appraisal, the offeree | ||
shall notify the authority in writing as to whether the offeree | ||
agrees with or disputes the fair market value provided in the first | ||
appraisal. If the offeree does not dispute the fair market value as | ||
determined by the first appraisal before the expiration of the | ||
15-day period, the first appraisal is final and binding on all | ||
parties and establishes the fair market value for the Costello | ||
Island Property. | ||
(3) If the offeree disputes the fair market value | ||
determined by the first appraisal, the offeree may withdraw its | ||
application to purchase the Costello Island Property or may employ | ||
a disinterested appraiser certified under Chapter 1103, | ||
Occupations Code, to conduct a second appraisal of the fair market | ||
value of the Costello Island Property. The second appraisal must be | ||
completed and sent to the authority not later than the 45th day | ||
after the date the offeree notifies the authority that the offeree | ||
disputes the first appraisal. If the authority does not receive the | ||
second appraisal before the expiration of the 45-day period, the | ||
offeree's application of intent to purchase will be deemed | ||
withdrawn. | ||
(4) Not later than the 15th day after the date of | ||
receiving the second appraisal, the authority shall notify the | ||
offeree in writing as to whether the authority agrees with or | ||
disputes the fair market value determined by the second appraisal. | ||
If the authority does not dispute the fair market value as | ||
determined by the second appraisal before the expiration of the | ||
15-day period, the second appraisal is final and binding on all | ||
parties and establishes the purchase price for the Costello Island | ||
Property. If the authority timely disputes the fair market value | ||
determined by the second appraisal, the two appraisers, or their | ||
designated agents, shall meet and attempt to reach an agreement on | ||
the fair market value of the Costello Island Property. The meeting | ||
shall occur not later than the 30th day after the date the authority | ||
notifies the offeree that the authority disputes the second | ||
appraisal. | ||
(5) If the two appraisers reach an agreement on the | ||
fair market value, they shall issue a report, not later than the | ||
20th day after the date of their meeting, relating the agreed fair | ||
market value to the authority and to the offeree, and this agreed | ||
fair market value shall be final and binding on all parties and | ||
establishes the purchase price. If the two appraisers fail to reach | ||
an agreement on or before the 20th day after the date of the | ||
meeting, then, not later than the 30th day after the date of the | ||
meeting, the two appraisers shall appoint a disinterested third | ||
appraiser certified under Chapter 1103, Occupations Code, to | ||
reconcile the two previous appraisals in a third appraisal. The | ||
third appraisal must be completed on or before the 30th day after | ||
the date of the third appraiser's appointment, and the fair market | ||
value determined by the third appraisal is final and binding on all | ||
parties and establishes the purchase price; provided, however, that | ||
the final purchase price may not be more than the fair market value | ||
determined by the first appraisal or less than the fair market value | ||
determined by the second appraisal. | ||
(6) The appraisal costs shall be paid by the person who | ||
requests the appraisal, except that the offeree and the authority | ||
shall each pay one-half of the cost of the third appraisal if a | ||
third appraisal is necessary. If the offeree fails to pay its share | ||
of the third appraisal, the offeree's application of intent to | ||
purchase will be deemed withdrawn. | ||
(7) The timelines for the appraisal process under this | ||
subsection may be extended upon joint agreement of the authority | ||
and the offeree. | ||
(d) To purchase the Costello Island Property, the offeree | ||
must: | ||
(1) provide to the authority a survey of the Costello | ||
Island Property that is: | ||
(A) prepared by a licensed state land surveyor or | ||
a registered professional land surveyor; | ||
(B) dated not earlier than one year before the | ||
effective date of the Act enacting this section; and | ||
(C) acceptable to the authority and any title | ||
company providing title insurance for the offeree; and | ||
(2) pay all closing costs associated with the sale of | ||
the property. | ||
(e) For any property sold under this section: | ||
(1) the authority shall provide a special warranty | ||
deed that encompasses and includes all interests in the Costello | ||
Island Property held by the authority, subject only to: | ||
(A) the restrictions, covenants, and | ||
prohibitions contained in the deed of conveyance under which the | ||
authority originally acquired title to the property, including | ||
without limitation any releases of the authority for the | ||
inundation, overflowing, or flooding of the lake; | ||
(B) the restrictions, covenants, and | ||
prohibitions described in Section 8502.020(d); | ||
(C) all encumbrances and other matters filed of | ||
record in the public records of the county in which the property is | ||
located; | ||
(D) any other matters or conditions that are | ||
apparent on the ground or that would be reasonably disclosed or | ||
discovered by an inspection of the property; and | ||
(E) any other rules, regulations, or policies of | ||
the authority in effect as of January 1, 2013, prohibiting or | ||
limiting commercial, private, or other on-water facilities for new | ||
development, and as such rules, regulations, or policies may be | ||
amended, modified, or discontinued from time to time; and | ||
(2) the offeree shall release and agree to hold the | ||
authority harmless from, and the authority may not be held liable | ||
for, damages, claims, costs, injuries, or any other harm to any | ||
offeree or any other person or the Costello Island Property, or to | ||
any improvements on the property, caused by or arising from any | ||
temporary flooding of any portion of the Costello Island Property. | ||
(f) Any sale of the Costello Island Property under this | ||
section must allow the authority the right to enter onto the | ||
Costello Island Property and the lake and other bodies of water, if | ||
any, located within the Costello Island Property with essential | ||
equipment for all purposes reasonably necessary for the authority | ||
to fulfill its obligations as a river authority and any obligations | ||
set forth in the FERC License, state water rights, or other | ||
governmental regulations, or for any purpose that the authority | ||
considers necessary for public safety, health, and welfare. Any | ||
exercise by the authority of rights described by this subsection | ||
may be conducted only after written notice is given to the offeree | ||
at least 48 hours in advance of entry onto the property, except in | ||
the event of an emergency, in which case advance notice is not | ||
required, but the authority shall provide written notice as soon as | ||
practicable. The authority shall use reasonable efforts to avoid | ||
interfering with the offeree's use of the Costello Island Property | ||
and shall promptly repair any damage to the property caused by the | ||
authority's entrance. Any claim to governmental immunity on behalf | ||
of the authority is waived with respect to the recovery of any | ||
damage caused by the authority's breach of this subsection. | ||
(g) Chapters 232 and 272, Local Government Code, Section | ||
49.226, Water Code, and Section 8502.013 of this code do not apply | ||
to a sale of property under this section. | ||
(h) The authority may use proceeds from the sale of property | ||
under this section for any authority purpose. | ||
(i) The authority shall reserve its interest in all oil, | ||
gas, and other minerals in and under the property to be sold, or any | ||
portion thereof, to the extent the authority owns an interest in | ||
those minerals. | ||
(j) If the conveyance described by this section is not | ||
completed before the second anniversary of the effective date of | ||
this Act, this section shall no longer be effective and expires on | ||
the date of the second anniversary. | ||
(k) To the extent of any conflict with other laws of this | ||
state, this section prevails. | ||
SECTION 4. Section 8502.020, Special District Local Laws | ||
Code, is amended to read as follows: | ||
Sec. 8502.020. SALE OF AUTHORITY PROPERTY. | ||
(a) Definitions. In this section: | ||
(1) "Authority Land" means the FERC Project Area and | ||
all other real property owned by the Authority at the Lake as of the | ||
date before Closing, save and except for the Leased Tract. | ||
(2) "Buffer Zone" means that twenty-five or fifty foot | ||
strip of land measured landward horizontally from the 1000' contour | ||
line that is included in the FERC Project Area as defined in the | ||
FERC License. | ||
(3) "Close" or "Closing" means the date on which the | ||
Authority transfers its interest in the Leased Tract, in whole or in | ||
part, to a Purchaser. There may be multiple closing dates if the | ||
Leased Tract is sold in portions. | ||
(4) "Commercial Leased Land" means all or any [ |
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portion of the Initial Commercial Leased Land and the Remaining | ||
Commercial Leased Land [ |
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(5) "Consumer Price Index" means the consumer price | ||
index for Housing, Dallas-Fort Worth, TX area, Series Id: | ||
CUURA316SAH, CUUSA316SAH, Base Period: 1982-84 = 100, as published | ||
by the Bureau of Labor Statistics of the United States Department of | ||
Labor, or its equivalent substitute should this series be | ||
discontinued. | ||
(6) "Contract" means the Authority entering into a | ||
purchase and sale agreement with a Purchaser for the transfer of the | ||
Authority's interest in the Initial Leased Tract or the Remaining | ||
Leased Tract, in whole or in part. | ||
(7) "Driveways" means those certain private gravel | ||
and/or paved driveways that connect a Road or other street or | ||
thoroughfare to an individual Leased Tract or any improvements | ||
thereon; Driveways also includes those shared or common Driveways | ||
that serve more than one Leaseholder or individual Leased Tract. | ||
(8) "Environmental Laws" means the Comprehensive | ||
Environmental Response, Compensation and Liability Act of 1980, the | ||
Toxic Substances Control Act, the Clean Water Act, the Resource | ||
Conservation and Recovery Act and any other similar federal, state | ||
or local law, rule or regulation respecting the environment or | ||
Hazardous Materials, together with all rules and regulations | ||
promulgated thereunder and all present or future amendments | ||
thereto. | ||
(9) "FERC License" means the order of the Federal | ||
Energy Regulatory Commission issuing a license to the Authority for | ||
project number 1490-003-Texas on September 8, 1989, as such license | ||
has been renewed, extended, or amended and may be further renewed, | ||
extended, or amended at any time and from time to time, and also | ||
including the Amendment to the original FERC License, which | ||
amendment was issued on May 15, 1980, to the extent incorporated or | ||
referenced in the FERC License. | ||
(10) "FERC Project Area" means that portion of | ||
Authority Land [ |
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before the Date of Decommissioning, as identified and defined in | ||
the FERC License, as may be amended at any time and from time to | ||
time, and which FERC Project Area may move or change over time due | ||
to natural forces. | ||
(11) "Ground Lease" means each of those certain | ||
residential and/or commercial ground leases between the Authority | ||
and a Leaseholder, and the respective heirs, successors, and | ||
assigns. | ||
(12) "Hazardous Materials" means underground storage | ||
tanks, petroleum and petroleum products, asbestos, PCB's, | ||
urea-formaldehyde and any hazardous or toxic substances, | ||
pollutants, contaminants, wastes, or materials as defined under any | ||
Environmental Laws. | ||
(13) "Lake" means Possum Kingdom Lake located in | ||
Young, Palo Pinto, Stephens, and Jack Counties. The boundary of | ||
the Lake is defined by the 1000' contour line, as that contour may | ||
meander and change over time with natural forces, including erosion | ||
and accretion. The "1000' contour line" means the line running | ||
along the periphery of the Lake if the surface of the Lake is at an | ||
elevation of 1000 feet above mean sea level, as measured from the | ||
top of the spillway crest gates of the Morris Sheppard Dam, as such | ||
line may move and shift from time to time due to natural forces. | ||
(14) "Leased Tract" or "Tract" means all or any | ||
portion of the Initial Leased Tract or the Remaining Leased Tract | ||
[ |
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Owner and whether or not subject to a lease or Ground Lease or owned | ||
in fee simple. | ||
(15) "Leaseholder" means a person or entity that has a | ||
residential lease or a commercial lease with the Authority, | ||
including the Leaseholder's heirs, successors, and assigns. | ||
(16) "Lienholder" means any mortgagee under a | ||
mortgage, or a trustee or beneficiary under a deed of trust, | ||
constituting a lien on any portion of the Leased Tract. | ||
(17) "Owner" means the record holder of fee simple | ||
title to any portion of the Leased Tract sold pursuant to this | ||
section, including its heirs, personal representatives, | ||
successors, and assigns. This term does not include a Purchaser | ||
who acquires the Leased Tract from the Authority in accordance with | ||
Subsection (b). | ||
(18) "Property" means the Leased Tract and the | ||
Authority Land. | ||
(19) "Purchaser" means any person or entity, including | ||
its successors in interest, heirs, or assigns, that acquires the | ||
Leased Tract (or any portion thereof) from the Authority in | ||
accordance with Subsection (b). This term does not include those | ||
Leaseholders that acquire individual Leased Tracts from the | ||
Purchaser in accordance with Subsection (b). | ||
(20) "Ranch" means that certain subdivision of record | ||
in Palo Pinto County, Texas, according to the map or plat of record | ||
in Volume 7, Page 71, Plat Records of Palo Pinto County, Texas, as | ||
it may be amended or modified from time to time, which subdivision | ||
includes a portion of the Leased Tract and a portion of the | ||
Authority Land. | ||
(21) "Ranch Agreement" means that certain agreement by | ||
and among the Authority, The Ranch on Possum Kingdom, L.P., and Hill | ||
Country Harbor Village, L.P., effective as of August 1, 1997, and | ||
dated December 12, 1997. | ||
(22) "Ranch Declarations" means that certain | ||
Declaration of Covenants, Conditions and Restrictions for The Ranch | ||
on Possum Kingdom Palo Pinto County, Texas, dated December 8, 1997, | ||
as recorded in Volume 944, Page 403, Official Public Records of Palo | ||
Pinto County, Texas. | ||
(23) "Residential Leased Land" means all or any [ |
||
portion of the Initial Residential Leased Land and the Remaining | ||
Residential Leased Land [ |
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(24) "Restrictions" means the easements, covenants, | ||
restrictions, liens, encumbrances, and requirements contained in | ||
the Declaration of Restrictive Covenants, Easements, and | ||
Conditions to be recorded by the Authority as set forth in | ||
Subsection (d), as amended from time to time. | ||
(25) "Roads" means those paved or gravel streets, | ||
roads, and thoroughfares owned and maintained by the Authority that | ||
are located in Stephens, Jack, Young, or Palo Pinto County and that | ||
provide access, ingress, and egress to and from the Leased Tract, | ||
the Lake, and/or Authority Land; provided, however, that the | ||
definition of Roads, as used herein, does not include: | ||
(A) Driveways; | ||
(B) paved or gravel roads located wholly within | ||
Authority public use areas; | ||
(C) paved or gravel roads located within gated | ||
Authority operations areas; and | ||
(D) paved or gravel roads located wholly within | ||
an individual tract that is part of the Commercial Leased Land, | ||
which roads only serve that individual commercial Tract. | ||
(26) "Shoreline Management Plan" means that certain | ||
Possum Kingdom Shoreline Management Plan and Customer Guide, | ||
adopted May 22, 2006, and amended July 31, 2006, and as may be | ||
revised and/or further amended by the Authority at any time and from | ||
time to time. | ||
(27) "Undeveloped Strips" means all or any portion of | ||
the Initial Undeveloped Strips and the Remaining Undeveloped Strips | ||
[ |
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(28) "Amendments to the Restrictions" means the | ||
amendments to the Restrictions under Subsection (d). | ||
(29) "Date of Decommissioning" means the effective | ||
date of the surrender of the FERC License for the Morris Sheppard | ||
Dam Project No. 1490-052 under the Order Accepting the Surrender of | ||
the License (issued December 23, 2011), 137 FERC 62,252. | ||
(30) "Initial Commercial Leased Land" means the | ||
portion of the Initial Leased Tract located wholly outside the FERC | ||
Project Area that is leased for commercial purposes as of the date | ||
the Restrictions are recorded in the applicable county records. | ||
(31) "Initial Leased Tract" means all or any portion | ||
of the Initial Commercial Leased Land, the Initial Residential | ||
Leased Land, and the Initial Undeveloped Strips, whether owned by | ||
the Authority, Purchaser, or Owner and whether or not subject to a | ||
lease or Ground Lease or owned in fee simple. | ||
(32) "Initial Residential Leased Land" means the | ||
portion of the Initial Leased Tract located outside the FERC | ||
Project Area that is leased only for single-family residential | ||
purposes as of the date the Restrictions are recorded in the | ||
applicable county records. The term does not include land that is | ||
subject to a commercial lease that may be subleased for residential | ||
purposes. | ||
(33) "Initial Undeveloped Strips" means small strips | ||
of unleased land located between individual lots in the Initial | ||
Leased Tract and small parcels of land between the Initial Leased | ||
Tract and Roads that the Authority determines in its sole | ||
discretion to include in a sale of all or any portion of the Initial | ||
Leased Tract. | ||
(34) "Remaining Commercial Leased Land" means the | ||
portion of the Remaining Leased Tract that is located wholly or | ||
partly within the FERC Project Area as of the date preceding the | ||
Date of Decommissioning and that is leased for commercial purposes | ||
as of the date the Amendments to the Restrictions are recorded in | ||
the applicable county records. The term does not include a special | ||
use lease, hangar lease, grass lease, hunting lease, or mineral | ||
lease, any other lease for noncommercial purposes, or any portion | ||
of the Initial Commercial Leased Land. | ||
(35) "Remaining Leased Tract" means all or any portion | ||
of the Remaining Commercial Leased Land, the Remaining Residential | ||
Leased Land, and the Remaining Undeveloped Strips, whether owned by | ||
the Authority, Purchaser, or Owner and whether or not subject to a | ||
lease or Ground Lease or owned in fee simple. | ||
(36) "Remaining Residential Leased Land" means the | ||
portion of the Remaining Leased Tract that is located wholly within | ||
the FERC Project Area as of the date preceding the Date of | ||
Decommissioning and that is leased only for single-family | ||
residential purposes as of the date the Amendments to the | ||
Restrictions are recorded in the applicable county records. The | ||
term does not include land that is subject to a commercial lease | ||
that may be subleased for residential purposes. The term does not | ||
include a special use lease, hangar lease, grass lease, hunting | ||
lease, or mineral lease, any other lease for nonresidential | ||
purposes, or any portion of the Initial Residential Leased Land. | ||
The term does not include a lease of land in the Buffer Zone that is | ||
subject to a residual interest that will automatically vest on the | ||
Date of Decommissioning or other expiration or termination of the | ||
FERC License. | ||
(37) "Remaining Undeveloped Strips" means small | ||
strips of unleased land located between individual lots in the | ||
Remaining Leased Tract and small parcels of land between the | ||
Remaining Leased Tract and Roads that the Authority determines in | ||
its sole discretion to include in a sale of all or any portion of the | ||
Remaining Leased Tract. | ||
(b) Sale to Purchaser. Prior to January 1, 2011, the | ||
Authority may sell the Initial Leased Tract in whole or in part, to | ||
a Purchaser in accordance with applicable law, this subsection, and | ||
Subsections (d), (e), (f), (g), (h), and (i). For a period of two | ||
years after the Date of Decommissioning, the Authority may sell the | ||
Remaining Leased Tract in whole or in part, to a Purchaser in | ||
accordance with applicable law, this subsection, and Subsections | ||
(d), (e), (f), (g), (h), and (i). Any sale of the Initial Leased | ||
Tract or the Remaining Leased Tract to a Purchaser under this | ||
subsection shall be subject to the following: | ||
(1) Each Leaseholder shall have the opportunity to buy | ||
such Leaseholder's individual portion of the Leased Tract from the | ||
Purchaser or to continue leasing the applicable portion of the | ||
Leased Tract from the Purchaser in accordance with the following | ||
purchase or lease options. The Purchaser shall: | ||
(A) Permit the Leaseholder to purchase such | ||
Leaseholder's individual Leased Tract in cash or through lender | ||
financing for 90% of land only assessed value without any | ||
exemptions (as determined by the appraisal district) for the year | ||
2008 if the tract is part of the Initial Leased Tract, or for the | ||
year 2012 if the tract is part of the Remaining Leased Tract, such | ||
options [ |
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Subdivision (2) and for a period of at least one year from Closing. | ||
(B) Permit the Leaseholder to purchase for the | ||
percent of assessed value only as set forth in Paragraph (A) such | ||
Leaseholder's individual portion of the Leased Tract via seller | ||
financing, with a down payment of ten percent (10%) and an interest | ||
rate of six percent (6%), with a 30-year amortization, such seller | ||
financing option to be available at Closing as set forth in | ||
Subdivision (2) and for a period of at least one year from Closing | ||
to the Leaseholder of any portion of the Commercial Leased Tract and | ||
to the Leaseholder of any portion of the Residential Leased Tract to | ||
the extent the Leaseholder of any portion of the Residential Leased | ||
Tract qualifies for financing under the Dodd-Frank Wall Street | ||
Reform and Consumer Protection Act (Pub. L. No. 111-203) and any | ||
related regulations. The Leaseholder [ |
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charged any origination fees or points by the Purchaser [ |
||
as a part of the closing costs involved in the seller financing | ||
option. | ||
(C) Offer a new 99-year lease at a rental rate of | ||
6% of the land only assessed value without any exemptions (as | ||
determined by the appraisal district) for the year 2008 if the tract | ||
is part of the Initial Leased Tract, or the 2012 land only assessed | ||
value without any exemptions if the tract is part of the Remaining | ||
Leased Tract, with annual Consumer Price Index increases or | ||
decreases, such options [ |
||
least one year from Closing. The 99-year lease will include an | ||
option for the Leaseholder to purchase the applicable portion of | ||
the Leased Tract at the land only assessed value without any | ||
exemptions (as determined by the appraisal district) at the time of | ||
purchase (but not less than the 2008 land only assessed value | ||
without any exemptions if the tract is part of the Initial Leased | ||
Tract, or the 2012 land only assessed value without any exemptions | ||
if the tract is part of the Remaining Leased Tract). | ||
(D) Offer a new 20-year lease with a rental rate | ||
as determined by the current Authority lease rate methodology or | ||
other lease rate structure as set forth in the Ground Lease as | ||
applicable (and including increases and adjustments to such rates) | ||
with annual Consumer Price Index increases or decreases, to | ||
Leaseholders who are over the age of 65 and who receive an ad | ||
valorem tax exemption under Section 11.13, Tax Code, for a | ||
structure on the Leaseholder's individual Leased Tract, such option | ||
to be available for a period of at least one year from the date of | ||
Closing. The Leaseholder must have received the ad valorem tax | ||
exemption for a structure on the Leaseholder's individual Leased | ||
Tract by January 1, 2009, if the tract is part of the Initial Leased | ||
Tract or January 1, 2013, if the tract is part of the Remaining | ||
Leased Tract. The 20-year lease will include an option for the | ||
Leaseholder to purchase the applicable portion of the Leased Tract | ||
at the land only assessed value without any exemptions (as | ||
determined by the appraisal district) at the time of purchase (but | ||
not less than the 2008 land only assessed value without any | ||
exemptions if the tract is part of the Initial Leased Tract or the | ||
2012 land only assessed value without any exemptions if the tract is | ||
part of the Remaining Leased Tract). | ||
(E) Ratify the existing Ground Lease of any | ||
Leaseholder who does not timely exercise one of the foregoing | ||
options, such ratification to include: | ||
(i) adoption of the current Authority lease | ||
rate methodology or other lease rate structure as set forth in the | ||
Ground Lease, as applicable (and including increases and | ||
adjustments to such rates) for a period of 8 years from Closing; | ||
(ii) an option permitting the Leaseholder | ||
to purchase such Leaseholder's individual portion of the Leased | ||
Tract for the land only assessed value without any exemptions (as | ||
determined by the appraisal district) at the time of purchase, or | ||
for the year 2008 if the tract is part of the Initial Leased Tract, | ||
or for the year 2012 if the tract is part of the Remaining Leased | ||
Tract, whichever is greater, for a period of 8 years from Closing; | ||
and | ||
(iii) an agreement to extend Ground Leases | ||
as necessary to allow for this full 8-year purchase option period. | ||
Nothing in this subsection shall preclude the Purchaser from | ||
offering additional purchase or lease options to the Leaseholders, | ||
provided any additional options are made available to all similarly | ||
situated Leaseholders on an equal basis. | ||
(2) A Leaseholder who desires to buy such | ||
Leaseholder's individual Leased Tract from the Purchaser pursuant | ||
to the option set forth in either Subdivision (1)(A) or (B) | ||
concurrently with the Purchaser's Closing must exercise the desired | ||
option as follows: | ||
(A) notify the Authority and Purchaser in writing | ||
within 90 days after the effective date of the Contract between the | ||
Authority and Purchaser of Leaseholder's intent to purchase the | ||
applicable Leased Tract; | ||
(B) Leaseholder and Purchaser will enter into a | ||
purchase and sale agreement in substantially the form as agreed to | ||
between the Authority and Purchaser, which form will be attached to | ||
the Contract, and which individual purchase and sale agreements | ||
will be ratified by Purchaser at the Closing; the purchase and sale | ||
agreement shall contain, at a minimum, the following terms and | ||
conditions: | ||
(i) the purchase price for the individual | ||
Leased Tract in accordance with the applicable purchase option; | ||
(ii) earnest money in the amount of $1,000 | ||
to be delivered to the title company agreed to by Leaseholder and | ||
Purchaser and approved by the Authority along with the executed | ||
purchase and sale agreement; | ||
(iii) the Leaseholder's obligation to | ||
provide a survey as set forth in this subsection and a title | ||
commitment from the agreed upon title company; | ||
(iv) a 60-day period commencing on the date | ||
of the purchase and sale agreement for the Leaseholder to obtain | ||
financing (if exercising its option pursuant to Subdivision (1)(A) | ||
above); | ||
(v) the Leaseholder must notify Purchaser | ||
of any objections to any items on the title commitment and/or survey | ||
within fifteen (15) days after receipt of same, but in no event less | ||
than 45 days prior to the anticipated date of Closing, provided | ||
however that neither the Purchaser nor the Authority shall have any | ||
obligation to cure any such items or to incur any expenses in curing | ||
any items, except that Purchaser and/or the Authority, as | ||
applicable, shall use good faith efforts to address and/or remove | ||
those requirements or exceptions shown on Schedule C of the title | ||
commitment that are applicable to or created by the Purchaser | ||
and/or Authority, as applicable, and, notwithstanding the | ||
foregoing, neither the Purchaser nor the Authority shall have any | ||
obligation to cure any exceptions on the attached Schedule C | ||
regarding legal right of access to or from the applicable Leased | ||
Tract; | ||
(vi) Leaseholder is purchasing the | ||
applicable individual Leased Tract in its "as-is" condition and | ||
Purchaser shall have no obligation to make any improvements or | ||
modifications thereto, nor will Purchaser make any representations | ||
or warranties as to the condition or use of the applicable Leased | ||
Tract; | ||
(vii) Purchaser shall not be responsible | ||
for any broker fees or commissions due to any broker or agent | ||
engaged or claiming to have been engaged by Leaseholder for the | ||
purchase and sale of the applicable Leased Tract; | ||
(viii) Purchaser shall be responsible for | ||
costs related to the release of any existing liens placed on the | ||
applicable portion of the Leased Tract by Purchaser, including | ||
prepayment penalties and recording fees, release of Purchaser's | ||
loan liability to the extent applicable to the individual Leased | ||
Tract, tax statements or certificates, preparation of the deed, and | ||
one-half of any escrow fee; | ||
(ix) Leaseholder shall be responsible for | ||
any costs associated with a loan or financing for the applicable | ||
portion of the Leased Tract, including, without limitation, loan | ||
origination, discount, buy-down, and commitment fees, appraisal | ||
fees, loan application fees, credit reports, preparation of loan | ||
documents, loan-related inspection fees, and interest on the notes | ||
from the date of disbursement to date of first monthly payment; the | ||
cost of the survey; recording fees; copies of easements and | ||
restrictions; mortgagee title policy with endorsements required by | ||
lender, if any; one-half of any escrow fee; any prepaid items, | ||
including without limitation, insurance premiums and reserves and | ||
taxes; underwriting fee; and any title policy (including | ||
endorsements) obtained by Leaseholder; | ||
(x) Taxes will be prorated as of the date of | ||
Closing; if taxes are not paid as of the date of Closing, then | ||
Leaseholder shall be responsible for the payment of taxes; and | ||
(xi) the agreement between Leaseholder and | ||
Purchaser shall be contingent on Closing occurring within the | ||
timeframes set forth in this subsection. | ||
(C) Leaseholder shall deliver to Authority and | ||
Purchaser no less than forty-five days prior to Closing, at the | ||
Leaseholder's expense, an accurate survey of the individual Leased | ||
Tract (including any Undeveloped Strips being included in such | ||
Leased Tract), which survey is acceptable to the Authority and | ||
Purchaser. To be acceptable to the Authority and Purchaser, the | ||
survey must: | ||
(i) be acceptable to the title company | ||
selected by the Purchaser and Leaseholder and approved by the | ||
Authority for purposes of issuing any policy of title insurance on | ||
the applicable portion of the Leased Tract; | ||
(ii) be prepared by a licensed state land | ||
surveyor or a registered professional land surveyor acceptable to | ||
the Authority; | ||
(iii) include the boundary of the | ||
Leaseholder's Leased Tract and any Undeveloped Strips being | ||
conveyed, which boundaries must be consistent with the master | ||
survey prepared on behalf of the Authority in conjunction with the | ||
sale of the Leased Tract to the Purchaser; | ||
(iv) include all improvements on the Leased | ||
Tract and indicate any encroachments across the applicable boundary | ||
lines [ |
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must provide evidence that any such encroachments across boundary | ||
lines, including encroachments onto Authority Land, [ |
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(either by removal of such encroachment or by written agreement | ||
between the affected parties permitting such encroachment to | ||
continue) prior to the survey being deemed acceptable; and | ||
(v) be reviewed and approved by the | ||
Authority and Purchaser; the Authority, Purchaser, and their | ||
representatives or agents may perform an inspection of the | ||
applicable Leased Tract to verify the accuracy of the survey | ||
[ |
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(D) On or before Closing, the purchase and sale | ||
agreement between the Leaseholder and Purchaser and any earnest | ||
money that may be required pursuant to such agreement shall be | ||
timely delivered to a title company or escrow agent acceptable to | ||
the Authority and agreed to by Leaseholder and Purchaser in such | ||
agreement; | ||
(E) On or before Closing, Purchaser and | ||
Leaseholder shall complete all documentation necessary to | ||
effectuate transfer of the applicable Leased Tract from the | ||
Purchaser to the Leaseholder and deliver such completed and | ||
executed documents to the applicable escrow agent; and | ||
(F) Promptly after Closing, the deed and any | ||
other applicable documents effectuating transfer of such Leased | ||
Tract to the Leaseholder shall be recorded in the county records | ||
where the Leased Tract is located promptly after such escrow agent | ||
receives written notice from the Authority or title company or | ||
escrow agent facilitating the Closing of the Leased Tract from the | ||
Authority to Purchaser that such Closing has been completed and the | ||
necessary documents have been recorded pursuant to such Closing. | ||
In no event shall the deed or any other documents transferring the | ||
applicable portion of the Leased Tract to the Leaseholder be | ||
recorded prior to Closing. | ||
(3) Closing shall occur no later than December 31, | ||
2010, for the Initial Leased Tract and not later than two years | ||
after the Date of Decommissioning for the Remaining Leased Tract. | ||
The Authority shall post on its website no later than thirty days | ||
after entering into a Contract for sale with Purchaser the | ||
effective date of such Contract and the anticipated date of | ||
Closing, which date shall be at least six (6) months from the | ||
effective date of the Contract. Any changes to the anticipated date | ||
of Closing shall also be posted on the Authority's website. These | ||
dates shall be used to establish the time periods provided in | ||
Subdivision (2). | ||
(c) Sale to Leaseholders. This subsection shall only apply | ||
to, and be effective for, those portions of the Remaining Leased | ||
Tract (if any) for which Closing has not occurred on or before the | ||
second anniversary of the Date of Decommissioning [ |
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of this subsection shall be the second anniversary of the Date of | ||
Decommissioning [ |
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subsection, the Authority shall suspend any applicable sale efforts | ||
under Subsection (b) for a period of two years beginning on the | ||
effective date of this subsection and initiate a tract by tract sale | ||
of the Remaining Leased Tract to the then-current Leaseholders as | ||
follows: | ||
(1) For a period of two years beginning on the | ||
effective date of this subsection and in accordance with the | ||
procedures set forth in this subsection, and subject to Subsections | ||
(d), (e), (f), (g), (h), and (i), the Authority shall provide | ||
Leaseholders the opportunity to purchase their individual portion | ||
of the Remaining Leased Tract [ |
||
Leaseholders shall have until the expiration of such two-year | ||
period to submit a completed application of intent to purchase | ||
their individual Remaining Leased Tracts as provided by Subdivision | ||
(4). | ||
(2) The Authority shall determine if, and how, any | ||
Remaining Undeveloped Strips will be divided between adjacent | ||
Leaseholders and incorporated into any individual Remaining Leased | ||
Tract; provided, however, Leaseholders shall not be required to | ||
accept any such Remaining Undeveloped Strips. | ||
(3) On or before the effective date of this | ||
subsection, the Authority shall make available to the Leaseholders | ||
a form for an application of intent to purchase the Leaseholder's | ||
individual Remaining Leased Tract. Such application shall be | ||
deemed a contract subject to the provisions set out herein. The | ||
application of intent shall provide the Leaseholder a 30-day | ||
feasibility period beginning on the date such application is | ||
submitted in which the Leaseholder can determine the feasibility of | ||
purchasing the applicable individual Remaining Leased Tract, | ||
including the ability of such Leaseholder to obtain financing for | ||
such purchase. | ||
(4) A Leaseholder who desires to purchase such | ||
Leaseholder's individual Remaining Leased Tract must submit a | ||
completed application to the Authority on or before the second | ||
anniversary of the effective date of this subsection [ |
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following: | ||
(A) Leaseholder delivers to the Authority an | ||
executed application of intent to purchase with all required | ||
information included in the application; | ||
(B) Leaseholder delivers an earnest money | ||
deposit, in good funds acceptable to the title company or escrow | ||
agent selected by the Authority, in the amount of $1,000 to such | ||
title company or escrow agent, which earnest money shall be | ||
nonrefundable after the expiration of the feasibility period except | ||
in the event closing does not occur due to the fault of the | ||
Authority; | ||
(C) any and all rent and other fees or amounts due | ||
to the Authority pursuant to such Leaseholder's Ground Lease have | ||
been paid and there are no amounts then outstanding which are past | ||
due; | ||
(D) Leaseholder has delivered to the Authority a | ||
survey that is acceptable to the Authority of the applicable | ||
Remaining Leased Tract (and any Remaining Undeveloped Strips being | ||
included in such Remaining Leased Tract). To be acceptable to the | ||
Authority, the survey must: | ||
(i) be acceptable to the title company | ||
selected by the Authority for purposes of issuing any policy of | ||
title insurance on the applicable portion of the Remaining Leased | ||
Tract; | ||
(ii) be prepared by a licensed state land | ||
surveyor or a registered professional land surveyor acceptable to | ||
the Authority; | ||
(iii) include the boundary of the | ||
Leaseholder's Remaining Leased Tract and any Remaining Undeveloped | ||
Strips being conveyed, which boundaries must be consistent with the | ||
master survey of the Remaining Leased Tract prepared on behalf of | ||
the Authority; | ||
(iv) include all improvements on the | ||
Remaining Leased Tract and indicate any encroachments across the | ||
applicable boundary lines, including encroachments onto Authority | ||
Land [ |
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must provide evidence that any such encroachments across boundary | ||
lines [ |
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by the Leaseholder (either by removal of such encroachment or by | ||
written agreement between the affected parties permitting such | ||
encroachment to continue) prior to the survey being deemed | ||
acceptable; and | ||
(v) be reviewed and approved by the | ||
Authority; the Authority or its representatives or agents may | ||
perform an inspection of the individual Remaining Leased Tract to | ||
verify the accuracy of the survey [ |
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thereon. | ||
(E) Leaseholder has delivered to the Authority a | ||
title commitment and, if requested by the Authority, any exception | ||
documents referenced therein, prepared by the applicable title | ||
company or escrow agent selected by the Authority; and | ||
(F) Leaseholder has delivered to the Authority | ||
written evidence from Leaseholder's lender or financial | ||
institution that Leaseholder has the financing or funds available, | ||
as applicable, to complete the purchase of Leaseholder's Remaining | ||
Leased Tract. | ||
(5) Completed applications that are timely delivered | ||
will be accepted and processed by the Authority in the order in | ||
which they are received; except that the Authority shall give | ||
preference in processing applications to Leaseholders who receive | ||
an ad valorem tax exemption under Section 11.13, Tax Code, for a | ||
structure on the Leaseholder's Remaining Leased Tract. | ||
(6) An individual Remaining [ |
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under this subsection shall be sold for 90% of the land only | ||
assessed value without any exemptions, as determined by the | ||
appraisal district, for the year in which the Leaseholder's | ||
application of intent to purchase is submitted to the Authority, or | ||
for the year 2012 [ |
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(7) The Leaseholder purchasing such Leaseholder's | ||
Remaining Leased Tract is responsible for: | ||
(A) timely paying all rent and other fees or | ||
amounts due to the Authority pursuant to such Leaseholder's Ground | ||
Lease through the date of closing on the Leaseholder's portion of | ||
the Remaining Leased Tract; | ||
(B) obtaining and delivering to the Authority a | ||
survey of the applicable Remaining Leased Tract in accordance with | ||
Subdivision (4)(D) and curing any encroachments shown thereon, all | ||
at Leaseholder's expense; | ||
(C) obtaining and delivering to the Authority, at | ||
such Leaseholder's expense, a title commitment in accordance with | ||
Subdivision (4)(E); the Authority may, but shall have no obligation | ||
to, cure any objections that Leaseholder may have to the | ||
exceptions, covenants, easements, reservations or any other items | ||
reflected on the title commitment; provided, however, that the | ||
Authority shall use good faith efforts to address and/or remove | ||
those requirements or exceptions shown on Schedule C of the title | ||
commitment that are applicable to or created by the Authority, and, | ||
notwithstanding the foregoing, the Authority shall have no | ||
obligation to cure any exceptions on the attached Schedule C | ||
regarding legal right of access to or from the applicable Remaining | ||
Leased Tract; | ||
(D) delivering to the applicable title company or | ||
escrow agent on or before closing on the Leaseholder's Remaining | ||
Leased Tract, in good funds, the purchase price and all reasonable, | ||
normal, customary, and documented costs associated with the | ||
transfer of the individual Remaining Leased Tract to the | ||
Leaseholder including, without limitation, all escrow fees, | ||
recording fees, taxes on the land after the date of such closing, | ||
document preparation fees, the cost of any Title Policy (including | ||
any endorsements thereon) obtained by Leaseholder, and any costs | ||
associated with removing any liens on the applicable Remaining | ||
Leased Tract; and | ||
(E) timely delivering to the escrow agent any | ||
notices, statements, affidavits, or other documents required by the | ||
application, escrow agent, or at law to effectuate the transfer of | ||
the applicable Remaining Leased Tract to the Leaseholder. | ||
(8) For those completed applications of intent to | ||
purchase timely delivered to the Authority under this subsection, | ||
the purchase must be completed no later than the expiration of 30 | ||
months after the effective date of this subsection [ |
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For any individual Remaining Leased Tract [ |
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closing has not occurred by such date, the application shall be | ||
deemed terminated. The Authority shall not accept any applications | ||
of intent to purchase after the second anniversary of the effective | ||
date of this subsection [ |
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of intent to purchase that are delivered to the Authority prior to | ||
such date but that are not "complete" as of such date in accordance | ||
with Subdivision (4) shall be rejected by the Authority. | ||
Leaseholders submitting an application of intent to purchase their | ||
individual Remaining Leased Tracts are responsible for ensuring | ||
that such application is deemed "complete" on or before the second | ||
anniversary of the effective date of this subsection [ |
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(9) Any Ground Lease that would otherwise expire shall | ||
be automatically extended as necessary for one year terms to permit | ||
such Leaseholder the full two-year period to deliver such | ||
application of intent to purchase such Leaseholder's individual | ||
Remaining Leased Tract and to complete such transaction no later | ||
than the expiration of 30 months after the effective date of this | ||
subsection [ |
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(10) The Owner of a Remaining Leased Tract sold under | ||
this subsection shall pay the Authority any reasonable fees set by | ||
the Authority for any services the Owner accepts from the | ||
Authority. However, the Owner of a Remaining Leased Tract is under | ||
no obligation to accept services from the Authority. | ||
(11) Any Remaining Leased Tract subject to the Ranch | ||
Agreement shall only be subject to sale under this subsection if the | ||
Authority is released from its obligations under the Ranch | ||
Agreement relating to such Remaining Leased Tract. | ||
(12) The following laws do not apply to sale of an | ||
individual Remaining Leased Tract under this subsection: | ||
(A) Chapter 272, Local Government Code; | ||
(B) Section 49.226, Water Code; and | ||
(C) Section 8502.013 of this code. | ||
(13) A provision that applies to the Leaseholder of an | ||
individual Remaining [ |
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any subsequent Owner of the individual Remaining Leased Tract. | ||
(14) At closing on the individual Remaining Leased | ||
Tract, the Leaseholder shall pay any indebtedness secured by a lien | ||
on the Leaseholder's leasehold estate (including the applicable | ||
portion of the Buffer Zone that is[ |
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part of the leasehold estate [ |
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the leasehold estate in the Remaining Leased Tract permitting the | ||
Leaseholder to grant a purchase money lien on the fee simple estate | ||
in the Remaining Leased Tract. | ||
(15) At the closing of the applicable Remaining Leased | ||
Tract, the Authority will deliver a special warranty deed. | ||
(16) For any portion of the Remaining Leased Tract | ||
that has not been sold pursuant to this subsection on or before the | ||
expiration of 30 months after the effective date of this subsection | ||
[ |
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the Remaining Leased Tract pursuant to terms and conditions | ||
determined by such Board. | ||
(d) Restrictions on Property [ |
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is [ |
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Restrictions recorded in Palo Pinto, Stephens, Young, and Jack | ||
Counties, as amended from time to time. After the Date of | ||
Decommissioning and before the date the Remaining Leased Tract is | ||
conveyed under Subsection (b) or (c), the Authority, without | ||
requiring the consent of any Owner, shall further amend the | ||
Restrictions and record the Amendments to the Restrictions in the | ||
records of each applicable county, which amendments must (i) add | ||
the Remaining Commercial Leased Land as part of the Commercial | ||
Leased Land in the Restrictions; (ii) add the Remaining Residential | ||
Leased Land as part of the Residential Leased Land in the | ||
Restrictions; (iii) add the Remaining Undeveloped Strips as part of | ||
the Undeveloped Strips in the Restrictions; (iv) add the Remaining | ||
Leased Tract as part of the Leased Tract; and (v) otherwise amend | ||
the Restrictions to be substantively in accordance with the | ||
following[ |
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[ |
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(2) Each Owner, Purchaser, and Leaseholder shall agree | ||
to not block, restrict, or otherwise prohibit access over, through, | ||
or across any Road and further agrees that such Roads or portion | ||
thereof shall remain open for use by the Authority, other Owners or | ||
Purchasers, lessees of any portion of the Property (including | ||
Leaseholders) and the general public. Except for (i) those | ||
portions of the Property that are accessible by water only as of the | ||
effective date of the Restrictions, and/or (ii) restrictions of | ||
access existing as of the effective date of the Restrictions (e.g., | ||
access to and from public roads that requires traversing real | ||
property not owned by the Authority, Owners, or Purchasers | ||
hereunder), and/or (iii) the covenants and restrictions of the | ||
Ranch Declarations (to the extent applicable to the Roads) or other | ||
restrictive covenants existing prior to the date the Restrictions | ||
are recorded of record, no Owner, Purchaser, or Leaseholder shall | ||
be permitted to block, restrict, or otherwise prohibit access on, | ||
over, or across the Roads. | ||
(3) The Driveways are not part of the Roads and shall | ||
be maintained by the Owner, Purchaser, or Leaseholder of the | ||
applicable Driveways. No Owner, Purchaser, or Leaseholder shall | ||
obstruct, prevent, or otherwise restrict access on, over or across | ||
any portion of a common Driveway by any such other Owner, Purchaser, | ||
or Leaseholder, or their guests or invitees, whose portion of the | ||
Property is served by such common Driveway. Owners, Purchasers, | ||
and/or Leaseholders whose portion of the Property is served by a | ||
common Driveway shall at all times have a nonexclusive right of | ||
ingress and egress over and across such common Driveway to access | ||
their portion of the Property. | ||
(4) All grants and dedications of easements, | ||
rights-of-way, restrictions, and related rights affecting the | ||
Leased Tract, made prior to the Leased Tract becoming subject to the | ||
Restrictions and any Amendments to the Restrictions that are of | ||
record, or visible or apparent, shall be incorporated into such | ||
Restrictions by reference and made a part of the Restrictions for | ||
all purposes as if fully set forth therein and shall be construed as | ||
being adopted in each and every contract, deed, or conveyance | ||
executed or to be executed by or on behalf of the Authority | ||
conveying any part of the Leased Tract. The foregoing adoption of | ||
such easements includes, without limitation, any and all written | ||
easements or agreements, whether or not recorded, between the | ||
Authority and any other party for the installation, maintenance, | ||
repair, or replacement of utility lines located on, above, over, | ||
under, or beneath the Property. | ||
(5) The Authority shall reserve for itself and its | ||
successors, assigns, and designees the nonexclusive right and | ||
easement, but not the obligation, to enter upon the Property, the | ||
Lake and other bodies of water, if any, located within the Property | ||
(a) to install, keep, maintain, and replace pumps in order to obtain | ||
water for the irrigation of any portion of the Authority Land, (b) | ||
to construct, maintain, replace, and repair any wall, dam, or other | ||
structure retaining water therein, (c) to access, construct, | ||
maintain, replace, and repair any measurement stations, monuments, | ||
or other similar improvements, (d) to remove trash and other | ||
debris, and (e) to fulfill the Authority's obligations as a river | ||
authority and any obligations set forth in [ |
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state water rights[ |
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Authority and its designees shall have an access easement through, | ||
over, and across any portion of the Leased Tract to the extent | ||
reasonably necessary to exercise the rights and responsibilities | ||
under this subdivision; provided, however, that (i) the Authority | ||
shall provide written notice at least 48 hours in advance of such | ||
entry to the Purchaser or Owner of such portion of the Leased Tract | ||
(except in the event of an emergency, in which case advance notice | ||
shall not be required, but the Authority shall provide such written | ||
notice as soon as practicable thereafter); (ii) the Authority shall | ||
promptly repair any damage to the portion of the Leased Tract caused | ||
by the Authority's entrance onto such Owner's or Purchaser's portion | ||
of the Leased Tract; and (iii) the Authority shall use reasonable | ||
efforts to avoid interfering with the Owner's or Purchaser's use of | ||
the portion of the Leased Tract. | ||
(6) The Authority shall reserve for itself and its | ||
successors, assigns, and designees a perpetual right, power, | ||
privilege, and easement to occasionally overflow, flood, and | ||
submerge that portion of the Property located at or below the | ||
elevation contour of 1015' above mean sea level in connection with | ||
the Authority's operation and maintenance of the Lake. The | ||
Authority shall have no liability to any Owner, Purchaser, | ||
Leaseholder, or any other person for any damages, claims, costs, | ||
injuries, or liabilities to any person or the Property or any | ||
improvements thereon that are caused by or arise from any act or | ||
omission by the Authority in connection with the foregoing right | ||
and easement. | ||
(7) Additional land may be included in the Property or | ||
Leased Tract at any time by the Authority, as long as the Authority | ||
owns any portion of the Property, by recording an amendment to these | ||
Restrictions in each of the counties in which the Property is | ||
located. Upon such additions, the Restrictions shall apply to the | ||
added land and the rights, privileges, duties, and liabilities of | ||
the Owners or Purchasers subject to the Restrictions shall be the | ||
same with respect to the added land as with respect to the Property | ||
originally covered by the Restrictions. As additional lands are | ||
added hereto, the Authority shall, with respect to said land, | ||
record amendments that may incorporate the Restrictions therein by | ||
reference and that may supplement or modify the Restrictions with | ||
such additional covenants, restrictions, and conditions that may be | ||
appropriate for those added lands. | ||
(8) The Restrictions may not be modified in any | ||
respect whatsoever or terminated, in whole or in part, except with | ||
the consent of (i) the Owners or Purchasers of at least sixty | ||
percent (60%) of the individual lots that comprise the Residential | ||
Leased Land and Commercial Leased Land, and (ii) the Owners or | ||
Purchasers of at least sixty percent (60%) of the land area of the | ||
Authority Land, and (iii) the Authority, for so long as the | ||
Authority has any interest in the Property, whether as an Owner or | ||
[ |
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foregoing, the Authority, without the joinder of any other party, | ||
shall have the absolute right to make minor changes or amendments to | ||
the Restrictions to correct or clarify errors, omissions, mistakes, | ||
or ambiguities contained therein. No amendment shall be effective | ||
until such amendment has been recorded in the Official Public | ||
Records of each of the counties in which the Property is located. | ||
(9) No improvements (except as specifically set forth | ||
in Subdivision (11)) shall be constructed or located on the Leased | ||
Tract within twenty-five feet (25') landward measured horizontally | ||
from the 1000' contour line of the Lake, a meander line that changes | ||
over time due to natural forces, such as erosion and accretion; | ||
provided, however, this restriction shall not include improvements | ||
inside this setback that are existing at the time the Restrictions | ||
are filed that [ |
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Authority[ |
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addition, no improvements on the Leased Tract (or any portion | ||
thereof) shall be constructed or located within five feet (5') of | ||
any other boundary line (i.e., the side and back boundary lines), | ||
other than fences; provided, however, this restriction shall not | ||
include improvements located within this 5' setback that are | ||
existing at the time the Restrictions are filed and that have been | ||
approved in writing by the Authority. | ||
[ |
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(11) Erosion control improvements (such as retaining | ||
walls, rip rap, etc.) and landscape planting may not be constructed | ||
or located [ |
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contour line without the prior written approval of the Authority. | ||
Such improvements shall be subject to the terms and conditions set | ||
forth in the Restrictions[ |
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the Authority's regulations, including without limitation, the | ||
Shoreline Management Plan. | ||
(12) No Owner, Purchaser, or Leaseholder shall have | ||
the right to place, or permit to be placed, any advertisements, | ||
private notices, signs, or billboards on the Residential Leased | ||
Land [ |
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residential property may be placed on the Residential Leased Land | ||
at the reasonable discretion of the Owner, Purchaser, and/or | ||
Leaseholder of that portion of the Residential Leased Land. | ||
(13) No activities shall be conducted on the Leased | ||
Tract and no improvements constructed on the Leased Tract that are | ||
or might be unsafe or hazardous to any person or property. | ||
(14) No Owner, Purchaser, Leaseholder, or occupant of | ||
any portion of the Leased Tract shall use or permit the use, | ||
handling, generation, storage, release, disposal, or | ||
transportation of Hazardous Materials on, about, or under the | ||
Leased Tract except for such quantities that are routinely utilized | ||
in connection with residential use (for all portions of the Leased | ||
Tract except the Commercial Leased Land) or for commercial uses | ||
that are in compliance with the Restrictions (for the Commercial | ||
Leased Land), and that are stored, used, and disposed of in | ||
compliance with all Environmental Laws. Each Owner, Purchaser, and | ||
Leaseholder shall indemnify, defend, protect, and save the | ||
Authority, its successors and assigns, trustees, directors, | ||
employees, and officers and each other Owner, Purchaser, and | ||
Leaseholder, harmless from and against, and shall reimburse such | ||
indemnified parties for, all liabilities, obligations, losses, | ||
claims, damages, fines, penalties, costs, charges, judgments, and | ||
expenses, including, without limitation, reasonable attorneys' | ||
fees and expenses that may be imposed upon or incurred or paid by or | ||
asserted against such indemnified parties by reason of or in | ||
connection with such Owner's, Purchaser's, or Leaseholder's failure | ||
to comply with this subdivision. | ||
(15) No Owner or Purchaser shall conduct, or permit to | ||
be conducted, any activity on the Leased Tract that is improper, | ||
immoral, noxious, annoying, creates a nuisance, or is otherwise | ||
objectionable to other Owners or Purchasers or incompatible with | ||
the recreational use of the Lake and the Authority Land [ |
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(16) The Residential Leased Land (and any Undeveloped | ||
Strips that are conveyed to an Owner or Purchaser as part of the | ||
Residential Leased Land pursuant to Subsection (b) or (c)) shall be | ||
improved and used solely for single-family residential use, | ||
inclusive of a garage, fencing, and other such related improvements | ||
as are necessary or customarily incident to normal residential use | ||
and enjoyment and for no other use. No portion of the Residential | ||
Leased Land (and any Undeveloped Strips that are conveyed to an | ||
Owner or Purchaser as part of the Residential Leased Land pursuant | ||
to Subsection (b) or (c)) shall be used for manufacturing, | ||
industrial, business, commercial, institutional, or other | ||
nonresidential purpose, save and except as set forth in Subdivision | ||
(17). Notwithstanding the foregoing, Owners, Purchasers, and/or | ||
Leaseholders shall be permitted to conduct a "garage sale" on their | ||
respective portion of the Residential Leased Land (and any | ||
Undeveloped Strips that are conveyed to an Owner or Purchaser as | ||
part of the Residential Leased Land pursuant to either Subsection | ||
(b) or (c)) not more than one time per calendar year. | ||
(17) No professional, business, or commercial | ||
activity to which the general public is invited shall be conducted | ||
on the Residential Leased Land (and any Undeveloped Strips that are | ||
conveyed to an Owner or Purchaser as part of the Residential Leased | ||
Land pursuant to Subsection (b) or (c)); except an Owner, | ||
Purchaser, Leaseholder, or occupant of a residence may conduct | ||
business activities within a residence so long as: (a) the | ||
existence or operation of the business activity is not apparent or | ||
detectable by sight, sound, or smell from outside the residence; | ||
(b) the business activity conforms to all zoning requirements; (c) | ||
the business activity does not involve door-to-door solicitation of | ||
residents, lessees, Leaseholders, Owners, or Purchasers within the | ||
Property; (d) the business does not generate a level of vehicular or | ||
pedestrian traffic or a number of vehicles parked within the | ||
Property that is noticeably greater than that which is typical of | ||
residences in which no business activity is being conducted; and | ||
(e) the business activity is consistent with the residential | ||
character of the Residential Leased Land and does not constitute a | ||
nuisance, or a hazardous or offensive use, or threaten the security | ||
or safety of other residents, lessees, Owners, Purchasers, or | ||
Leaseholders of the Property. The terms "business" and "trade", as | ||
used in this provision, shall be construed to have their ordinary, | ||
generally accepted meanings and shall include, without limitation, | ||
any occupation, work, or activity undertaken on an ongoing basis | ||
that involves the provision of goods or services to persons other | ||
than the provider's family and for which the provider receives a | ||
fee, compensation, or other form of consideration, regardless of | ||
whether: (x) such activity is engaged in full or part-time; (y) such | ||
activity is intended to or does generate a profit; or (z) a license | ||
is required. Leasing of a residence shall not be considered a | ||
business or trade within the meaning of this subsection. This | ||
subdivision shall not apply to any activity conducted by the | ||
Authority. | ||
(18) Except as may be otherwise provided in the | ||
Restrictions and any Amendments to the Restrictions, Commercial | ||
Leased Land (and any Undeveloped Strips that are conveyed to an | ||
Owner or Purchaser as part of the Commercial Leased Land pursuant to | ||
Subsection (b) or (c)) may be improved and used for any lawful | ||
commercial purpose, including without limitation, nonprofit | ||
organizations or governmental or quasi-governmental agencies. | ||
(19) No portion of the Leased Tract may be used for the | ||
commercial testing or development of wind power, or to produce, | ||
lease, store, and/or transmit electrical power generated thereby | ||
for commercial or resale purposes. | ||
(20) Each Owner or Purchaser shall keep, or cause to be | ||
kept, all improvements located on its respective portion of the | ||
Leased Tract maintained in good condition and repair, clean and | ||
free of rubbish and other hazards, and otherwise in full accordance | ||
with the Restrictions and all governmental rules, regulations, | ||
codes, and zoning requirements. Such maintenance shall include, | ||
but not be limited to, the following: regular and timely removal of | ||
all litter, garbage, trash, and waste; regular lawn mowing; tree, | ||
shrub, and plant pruning and trimming; watering of landscaped | ||
areas; weed control; pest control; maintaining exterior lighting | ||
and mechanical facilities in good working order; keeping walks and | ||
driveways clean and in good repair; and the repairing and | ||
repainting of the exterior improvements visible to neighboring | ||
properties and/or public view. | ||
(21) In the event of any damage to or destruction of | ||
any building or improvement on any portion of the Leased Tract from | ||
any cause whatsoever, the Owner, Purchaser, or Leaseholder upon | ||
whose portion of the Leased Tract the casualty occurred shall, at | ||
such Owner's, Purchaser's, or Leaseholder's sole option, either (i) | ||
repair, restore, or rebuild and complete the same with reasonable | ||
diligence, (ii) clear the affected area of all hazardous or | ||
dangerous debris and structures and lawfully dispose of same within | ||
one year from the date of casualty, or (iii) effectuate any | ||
combination of clauses (i) and (ii) of this subdivision as such | ||
Owner, Purchaser, or Leaseholder may deem reasonably | ||
appropriate. Notwithstanding the foregoing, in the event the | ||
Owner, Purchaser, or Leaseholder elects to rebuild buildings or | ||
improvements that were located within [ |
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the 1000' contour line that were approved in accordance with | ||
Subdivision (9), such buildings or improvements shall be rebuilt in | ||
accordance with Subdivision (24). | ||
(22) The Texas Commission on Environmental Quality has | ||
adopted rules governing on-site sewage facilities (also called | ||
septic systems). The Authority is the commission's authorized | ||
agent for the septic system licensing program, including the | ||
enforcement of the commission's septic system rules and regulations | ||
for the Property. The Authority, as the agent for the commission, | ||
shall have the authority to access the Property for the purpose of | ||
issuing such licenses, inspecting such septic systems, and | ||
enforcing any and all rules and regulations related thereto. Each | ||
Owner, Purchaser, and Leaseholder agrees to comply with all | ||
sanitary regulations and the licensing process adopted by the | ||
commission and enforced by the Authority, as its agent, from time to | ||
time. | ||
(23) The Owner or Purchaser shall be responsible, at | ||
such Owner's or Purchaser's expense, for providing for the | ||
collection, removal, and disposal of all solid waste on the Leased | ||
Tract; or the Owner or Purchaser of any portion of the Leased Tract | ||
shall be responsible for ensuring that the Leaseholders provide for | ||
such collection, removal, and disposal of all solid waste on the | ||
applicable portion of the Leased Tract. In the event the Ranch | ||
fails to provide for the collection, removal, and disposal of all | ||
solid waste related to the Ranch, the Owner or Purchaser shall be | ||
responsible for providing for the same. | ||
(24) [ |
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[ |
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may repair, alter, or rebuild improvements located above the 1000' | ||
contour line [ |
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landward measured horizontally from the 1000' contour line, and/or | ||
improvements located within the 5' boundary setback, which | ||
improvements were previously approved in accordance with | ||
Subdivision (9). Such repairs, alterations, or rebuilding may | ||
extend such improvements outside the previously existing footprint | ||
towards the side boundaries and back boundary of the applicable | ||
Leased Tract, but such improvements may not be extended towards the | ||
shoreline or encroach closer to the 1000' contour line of the Lake | ||
than the existing or previously existing improvements. | ||
(25) The Authority shall reserve its rights, title, | ||
and interest in all oil, gas, and other minerals in and under any | ||
and all Property, including the Leased Tract. | ||
(26) No land located at or below the 1000' contour line | ||
[ |
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occupied, except in such manner as shall have been approved by the | ||
Authority [ |
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retaining walls, or any other structures or facilities shall be | ||
built, installed, or maintained in, on, or over the waters of the | ||
Lake [ |
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Authority. All such structures or facilities shall be subject to | ||
all rules and regulations applicable to the Lake [ |
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time. Owner, Purchaser, and/or the Leaseholder shall be | ||
responsible for any fees or annual charges assessed by the | ||
Authority [ |
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such permit or improvements and shall be responsible for ensuring | ||
that any such improvements are consistent with the [ |
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Shoreline Management Plan[ |
||
applicable to the Property [ |
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shall not, at any time, permit any liens to encumber the Authority | ||
Land [ |
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(27) No use of the Lake or other bodies of water within | ||
the Property, if any, shall be made except in accordance with the | ||
[ |
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regulations, and any other rules and regulations that may be | ||
promulgated by the [ |
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such use shall be subject to the Authority's [ |
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not be responsible for any loss, damage, or injury to any person or | ||
property arising out of the authorized or unauthorized use of the | ||
Lake or other bodies of water within or adjacent to the Property. | ||
(28) The Authority may use and regulate the Lake or | ||
other bodies of water within the Property for the irrigation of the | ||
Authority Land, or for any other purpose deemed appropriate by the | ||
Authority, subject to the rights and authority of any [ |
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jurisdiction of such areas, and subject to the water rights granted | ||
(or which may be granted) to the Authority by the State of | ||
Texas. The Authority's rights under this subdivision shall be | ||
superior to any rights of any Owner, Purchaser, or | ||
Leaseholder. This subdivision shall not be construed to limit or | ||
restrict the rights and authority of any [ |
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jurisdiction of the Property. | ||
(29) Owners or Purchasers must obtain written | ||
permission from the Authority in accordance with the Authority's | ||
regulations to use or divert water from the Lake on any portion of | ||
the Leased Tract for domestic or commercial purposes. | ||
(30) No Owner, Purchaser, or Leaseholder shall be | ||
permitted to divert or alter the natural drainage of the terrain or | ||
clear vegetation on any portion of the Property in such a manner | ||
that would cause unnatural erosion or silting of the Lake. | ||
(31) Owners, Purchasers, and Leaseholders shall take | ||
all reasonable precautions to ensure that all use of and activities | ||
on the Leased Tract [ |
||
limitation, the construction, operation, and maintenance of any | ||
improvements on the Leased Tract[ |
||
in a manner that [ |
||
will protect the scenic, recreational, and environmental values of | ||
the Lake. The Authority[ |
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|
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proposed construction that impacts the [ |
||
lakebed, and Owner, Purchaser, and Leaseholder shall comply with | ||
the approval process as may be established by the Authority [ |
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[ |
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(33) The Owner, Purchaser, and Leaseholder of any | ||
portion of the Property [ |
||
following rules and regulations, as applicable: | ||
(A) [ |
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|
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[ |
||
|
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|
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[ |
||
Governance for Brazos River Authority Lakes and Associated Lands," | ||
as published on the Authority's Internet website and as those | ||
regulations may be amended from time to time; and | ||
(B) [ |
||
the Authority regarding conduct on and use of the Lake [ |
||
|
||
(34) By Texas statute, the Authority is empowered to | ||
adopt and has adopted certain regulations governing conduct on and | ||
use of the Property [ |
||
Owners, Purchasers, Leaseholders, and persons using the Leased | ||
Tract with such Owners' or Purchasers' consent shall abide by all | ||
such rules and regulations adopted from time to time by the | ||
Authority and any future revisions and amendments thereto. | ||
(35) Owners, Purchasers, and Leaseholders of that | ||
portion of the Leased Tract that is part of the Ranch shall comply | ||
with the terms and conditions of the Ranch Agreement and the | ||
covenants and restrictions set forth in the Ranch Declarations, to | ||
the extent applicable to such portion of the Leased Tract. As to | ||
that portion of the Property that is part of the Ranch, the Ranch | ||
Declarations shall control in the event of any conflict between the | ||
covenants, restrictions, and conditions set forth in the Ranch | ||
Declarations and the Restrictions. Owners, Purchasers, and | ||
Leaseholders of a portion of the Leased Tract that is part of any | ||
other subdivision shall comply with the terms and conditions of the | ||
covenants and restrictions governing the subdivision that apply to | ||
the portion of the Leased Tract. Any portion of the Property that | ||
is part of the subdivision is governed by the restrictions and | ||
covenants governing the subdivision which shall control in the | ||
event of a conflict between the covenants, restrictions, and | ||
conditions governing the subdivision and the Restrictions and | ||
Amendments to the Restrictions. | ||
(36) In order to maintain the quality of the Lake's | ||
water, the stability of the shoreline, and of the environment in the | ||
Lake's vicinity, each Owner, Purchaser, and Leaseholder of all or | ||
any portion of the Leased Tract agrees to: | ||
(A) comply with any local, state, or federal laws | ||
related to water quality or the environment, including laws | ||
governing toxic wastes and hazardous substances; | ||
(B) if the Owner's or Purchaser's private on-site | ||
sewerage facility is not licensed by the Texas Commission on | ||
Environmental Quality (or any successor to such Commission) then | ||
the Owner, Purchaser, or Leaseholder shall connect to and use, at | ||
the Owner's, Purchaser's, or Leaseholder's expense, as applicable, | ||
any wastewater treatment system or service that becomes available | ||
to the Owner's or Purchaser's portion of the Leased Tract, not later | ||
than twelve (12) months after the system or service becomes | ||
available to such portion of the Leased Tract and thereafter | ||
discontinue use of any private on-site sewerage facility; and if, | ||
at any time after a wastewater treatment system or service becomes | ||
available to the Owner's or Purchaser's portion of the Leased Tract, | ||
the Owner's or Purchaser's private on-site sewerage facility | ||
(whether licensed or not) requires either replacement or an | ||
alteration or change in the on-site sewerage facility resulting in | ||
(i) an increase in the volume of permitted flow, (ii) a change in | ||
the nature of permitted influent, (iii) a change from the planning | ||
materials approved by the permitting authority, (iv) a change in | ||
construction, and/or (v) an increase, lengthening, or expansion of | ||
the treatment or disposal system, then such Owner or Purchaser | ||
shall promptly connect to and use, at the Owner's, Purchaser's, or | ||
Leaseholder's expense, as applicable, such wastewater treatment | ||
system or service and thereafter discontinue use of any private | ||
on-site sewerage facility. Notwithstanding the foregoing, in the | ||
event a property owners association or municipality requires the | ||
Owners or Purchasers of the portion of the Leased Tract that is | ||
included in such association or municipality to connect to a | ||
wastewater system or service, then such association or municipality | ||
rules shall control; | ||
(C) obtain written consent of the Authority prior | ||
to diverting or pumping water from the Lake or any body of water | ||
within or adjacent to the Property, constructing or erecting any | ||
embankment or retaining wall, or commencing any dredging activity; | ||
and | ||
(D) pay to the Authority any reasonable fee | ||
related thereto (e.g., water usage, recreational user, dredging, or | ||
retaining wall fees) as may be adopted from time to time by the | ||
Authority. | ||
(37) Each Owner or Purchaser of all or any portion of | ||
the Leased Tract agrees and acknowledges that the water level in the | ||
Lake varies and that the Authority is not responsible for | ||
maintaining the Lake at any certain level or above or below any | ||
certain level. | ||
(38) The Authority is not responsible or liable for | ||
any personal injury or damage to any Owner, Purchaser, Leaseholder, | ||
the Leased Tract, the Property, or any improvements caused by any | ||
increase or decrease in the water level (even if such increase or | ||
decrease is due to modifications of the Morris Sheppard (Possum | ||
Kingdom) Dam or other actions or omissions of the Authority) or | ||
caused by natural flooding. | ||
(39) The Authority shall reserve the right of ingress | ||
and egress for the Authority and any person authorized by the | ||
Authority, including an agent of the Authority or employees, over | ||
and across the Leased Tract and any and all on-water facilities | ||
whether located within the Leased Tract or Authority Land [ |
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|
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including, without limitation, the construction, maintenance, | ||
repair, and/or replacements of any roads, drainage facilities, and | ||
power, water, wastewater, and other utility mains and lines that | ||
the Authority considers necessary or beneficial and for public | ||
safety, health, and welfare purposes; provided however, that: | ||
(A) the Authority shall provide written notice at | ||
least 48 hours in advance of such entry to the Purchaser or Owner of | ||
such portion of the Leased Tract (except in the event of an | ||
emergency, in which case advance notice shall not be required, but | ||
the Authority shall provide such written notice as soon as | ||
practicable thereafter), which notice shall state with reasonable | ||
specificity the purpose for such entry; | ||
(B) the Authority shall promptly repair any | ||
damage to the portion of the Leased Tract caused by the Authority's | ||
entrance onto such Owner's or Purchaser's portion of the Leased | ||
Tract; and | ||
(C) the Authority shall use reasonable efforts to | ||
avoid interfering with the Owner's or Purchaser's use of the portion | ||
of the Leased Tract. | ||
(40) Each Owner, Purchaser, and Leaseholder shall | ||
comply strictly with the Restrictions, as the same may be amended | ||
from time to time. Failure to comply with the Restrictions shall | ||
constitute a violation of the Restrictions, and shall give rise to a | ||
cause of action to recover sums due for damages or injunctive relief | ||
or both, maintainable by the Authority or other Owners or | ||
Purchaser; provided however, no Owner, Purchaser, Leaseholder, or | ||
other person shall have any right of action against the Authority | ||
arising under the Restrictions. | ||
(41) The Authority shall make no warranty or | ||
representation as to the present or future validity or | ||
enforceability of any such restrictive covenants, terms, or | ||
provisions. Any Owner, Purchaser, or Leaseholder acquiring or | ||
leasing, as applicable, any portion of the Property in reliance on | ||
one or more of the Restrictions shall assume all risks of the | ||
validity and enforceability thereof and, by acquiring such portion | ||
of the Property, agrees to hold the Authority harmless therefrom. | ||
(42) If the Owner, Purchaser, or Leaseholder of any | ||
portion of the Leased Tracts or on-water facilities related thereto | ||
(including retaining walls) shall fail to comply with the | ||
requirements of the Restrictions, then the Authority shall have the | ||
right, but not the obligation, following thirty (30) days prior | ||
written notice to such defaulting person [ |
||
defaulting person's [ |
||
if such failure to comply results in a public health, safety, or | ||
welfare concern) and/or such defaulting person's [ |
||
facility and cure such breach, the cost of which shall be reimbursed | ||
by such defaulting person [ |
||
such unpaid amounts, together with interest thereon (at the rate of | ||
six percent (6%) per annum) and the costs of collection (if any), | ||
shall be charged as a continuing lien against such defaulting | ||
person's [ |
||
subordinate to the lien of any third-party deed of trust previously | ||
recorded against such defaulting person's [ |
||
Leased Tract. | ||
(43) A person shall be deemed to be in default of the | ||
Restrictions only upon the expiration of thirty (30) days (ten (10) | ||
days in the event of failure to pay money) from receipt of written | ||
notice from the Authority or other Owner or Purchaser specifying | ||
the particulars in which such person has failed to perform the | ||
obligations of the Restrictions unless such person, prior to the | ||
expiration of said thirty (30) days (ten (10) days in the event of | ||
failure to pay money), has rectified the particulars specified in | ||
said notice of default. However, such person shall not be deemed to | ||
be in default if such failure (except a failure to pay money) cannot | ||
be rectified within said thirty (30) day period and such person | ||
commences the cure of such default within such thirty (30) day | ||
period and thereafter is continuously using good faith and its best | ||
efforts to rectify the particulars specified in the notice of | ||
default. | ||
(44) The Authority shall have the right, but not the | ||
obligation, to enforce all of the provisions of the Restrictions. | ||
Any Owner or Purchaser shall have the right to enforce all of the | ||
provisions of the Restrictions against any other Owner, Purchaser, | ||
or Leaseholder, but not against the Authority. Such right of | ||
enforcement shall include the right to sue for both damages for, and | ||
injunctive relief against, the breach of any such provision. | ||
Furthermore, the Authority shall have the right, when appropriate | ||
in its sole judgment and discretion, to claim or impose a lien upon | ||
any portion of the Leased Tract, or improvement constructed | ||
thereon, in order to enforce any right or effect compliance with the | ||
Restrictions. | ||
(45) The failure of a person (including the Authority | ||
or any Owner or Purchaser) to insist upon strict performance of any | ||
of the Restrictions shall not be deemed a waiver of any rights or | ||
remedies that said person may have, and shall not be deemed a waiver | ||
of any subsequent breach or default in the performance of any of the | ||
Restrictions by the same or any other person. | ||
(46) The Authority shall not be liable to any Owner, | ||
Purchaser, or Leaseholder, or to any other person for any loss, | ||
damage, or injury arising out of or in any way connected with the | ||
performance or nonperformance of the Authority's rights, | ||
obligations, or privileges under the Restrictions. Without | ||
limiting the foregoing, the Authority shall not be liable to any | ||
Owner, Purchaser, or Leaseholder due to the construction of any | ||
improvements within the Property. | ||
(47) Each of the Restrictions on the Leased Tract | ||
shall be a burden on each portion of the Leased Tract, shall be | ||
appurtenant to and for the benefit of the other portions of the | ||
Property, other portions of the Leased Tract, and each part | ||
thereof, and shall run with the land. | ||
(48) The Restrictions shall inure to the benefit of | ||
and be binding upon the Owners or Purchasers, their heirs, | ||
successors, assigns, and personal representatives, and upon any | ||
person acquiring all or any portion of the Leased Tract, or any | ||
interest therein, whether by operation of law or otherwise. | ||
Notwithstanding the foregoing, if any Owner or Purchaser sells or | ||
transfers all or any portion of such Owner's or Purchaser's interest | ||
in all or any portion of the Leased Tract, such Owner or Purchaser | ||
shall, upon the sale and conveyance of title, be released and | ||
discharged from all of its obligations as Owner or Purchaser in | ||
connection with the property sold by it arising under the | ||
Restrictions after the sale and conveyance of title but shall | ||
remain liable for all obligations arising under the Restrictions | ||
prior to the sale and conveyance of title. The new Owner or | ||
Purchaser of all or any such portion of the Leased Tract, | ||
(including, without limitation, any Owner (or Lienholder) who | ||
acquires its interest by foreclosure, trustee's sale or otherwise) | ||
shall be liable for all obligations arising under the Restrictions | ||
with respect to such portion of the Leased Tract on and/or after the | ||
date of sale and conveyance of title. The Authority may assign, in | ||
whole or in part, any of its privileges, exemptions, rights, and | ||
obligations (if any) under the Restrictions to any other person and | ||
may permit the participation, in whole or in part, by any other | ||
person in any of its privileges, exemptions, rights, and | ||
obligations (if any) hereunder. | ||
(49) Except as provided in this subsection, the term | ||
of the Restrictions shall be for a period of fifty (50) years from | ||
the date such Restrictions are executed by the | ||
Authority. Notwithstanding the foregoing, upon the expiration of | ||
such period, the term of the Restrictions shall automatically renew | ||
for successive periods of five (5) years each unless, at least | ||
ninety (90) days prior to the date of expiration of any period then | ||
in effect, (i) the Owners or Purchasers of at least sixty percent | ||
(60%) of the individual lots that comprise the Residential Leased | ||
Land and the Commercial Leased Land, (ii) the Owners or Purchasers | ||
of at least sixty percent (60%) of the land area of the Authority | ||
Land, and (iii) the Authority, for so long as the Authority has any | ||
interest in the Property, whether as an Owner or [ |
||
|
||
office of the recorder of the counties in which the Property is | ||
located a written termination notice, in which event, the | ||
Restrictions shall automatically expire at the end of the period | ||
then in effect. | ||
(50) Any subdivision by an Owner of the Owner's portion | ||
of the Leased Tract is subject to all applicable laws, rules, | ||
regulations, codes, and ordinances, including any applicable | ||
platting requirements, and any rules and restrictions relating to | ||
on-site sewage facilities. | ||
(e) Buffer Zone. Notwithstanding any provision in this | ||
subsection to the contrary, a sale under Subsection (b) or (c) shall | ||
be subject to the following: | ||
(1) The Remaining [ |
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|
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Tract being conveyed under Subsection (b) or (c) shall include the | ||
applicable [ |
||
provided, however, the Purchaser and/or Owner, as applicable, shall | ||
grant the Authority access to the Buffer Zone [ |
||
and Lake to allow the Authority to fulfill its obligations as a | ||
River Authority and any obligations set forth in [ |
||
|
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(2) At [ |
||
Leased Tract [ |
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|
||
located within the Buffer Zone and is a part of the FERC Project | ||
Area, and therefore the Authority shall provide such Purchaser | ||
and/or Owner, as applicable, a residual interest in that portion of | ||
the Buffer Zone adjacent to the Initial Leased Tract and covered by | ||
the applicable residential Ground Lease, such residual interest to | ||
automatically vest upon satisfaction of one [ |
||
following conditions: | ||
(A) the Federal Energy Regulatory Commission | ||
approves an amendment to the FERC License removing the Buffer Zone | ||
from the boundaries prescribed by the FERC License such that the | ||
Buffer Zone is no longer subject to regulation by the Federal Energy | ||
Regulatory Commission; [ |
||
(B) the FERC License expires (and is not renewed | ||
or extended) or is otherwise terminated and thus the Buffer Zone is | ||
no longer subject to regulation by the Federal Energy Regulatory | ||
Commission; or | ||
(C) the Date of Decommissioning occurs. | ||
(3) Notwithstanding the foregoing, if such residual | ||
interest has not vested on or before August 31, 2040, then such | ||
residual interest shall be terminated and of no further force and | ||
effect. Upon satisfaction of one [ |
||
conditions prior to August 31, 2040, this conveyance shall be | ||
automatically effective without necessity of further | ||
documentation. From and after the date such conveyance becomes | ||
effective, the Buffer Zone shall be considered to be a part of the | ||
Initial Leased Tract conveyed under Subsection (b) [ |
||
Purchaser or then current Owner of the applicable Initial Leased | ||
Tract shall be the beneficiary of the residual interest created | ||
herein, but only as to the portion of the Buffer Zone located | ||
adjacent to the Purchaser's or Owner's property and all right, | ||
title, and interest in such adjacent portion of the Buffer Zone as | ||
measured by extending the boundary lines on both sides of the | ||
applicable portion of the Initial Leased Tract in a straight line | ||
across the Buffer Zone to the then current 1000' contour line of the | ||
Lake, or, if such portion cannot reasonably be measured as set forth | ||
above, then as otherwise determined by the Purchaser and approved | ||
by the Authority. Such residual interest shall immediately vest in | ||
the Purchaser or then-current Owner of such adjacent portion of the | ||
Initial Leased Tract without the necessity of any additional | ||
written conveyance. | ||
(4) Until the residual interest in the Buffer Zone | ||
vests in the Purchaser or then-current Owner of the adjacent | ||
portion of the Initial Leased Tract as set forth in Subdivision (3), | ||
[ |
||
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|
||
Buffer Zone shall remain subject to the terms and conditions of the | ||
residential Ground Lease in effect between the Leaseholder and the | ||
Authority at the time Closing occurs under Subsection (b) [ |
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Authority under such Ground Lease for the Buffer Zone. At such time | ||
as the applicable Ground Lease expires or is otherwise terminated, | ||
the Authority may, subject to approval of the Federal Energy | ||
Regulatory Commission, grant the Purchaser or the then-current | ||
Owner of the adjacent tract (as determined pursuant to the method | ||
set forth in Subdivision (2)(B)), an easement for use of such | ||
portion of the Buffer Zone, which easement shall be subject to the | ||
FERC License. The Authority shall retain ownership of such portion | ||
of the Buffer Zone and exercise control over such portion of the | ||
Buffer Zone consistent with the FERC License and this subsection. | ||
The easement granted to such Owner shall be limited to uses | ||
permitted under the terms of the FERC License and the Authority's | ||
Shoreline Management Plan, and any other Authority rules and | ||
regulations as may be adopted from time to time. | ||
(f) Purchase Price. For purposes of determining the | ||
purchase price and/or lease rate pursuant to the options set forth | ||
in Subsection (b)(1) or the purchase price in Subsection (c), in the | ||
event the appraisal district does not provide an assessed value for | ||
the applicable portion of the Leased Tract for the applicable year, | ||
then the land only assessed value without any exemptions for the | ||
applicable portion of the Leased Tract shall be calculated based on | ||
the assessed value per square foot of comparable lots with similar | ||
physical characteristics in the applicable county or adjoining | ||
counties, as determined by the Authority. | ||
(g) Roads. Authority or Purchaser, whichever is | ||
applicable, shall transfer its interest in the Roads to the | ||
applicable county in which the Roads, or any portion thereof, are | ||
situated as follows: | ||
(1) All Roads located in Stephens County | ||
(approximately three miles of Roads) shall be transferred to | ||
Stephens County on or before December 31, 2011. | ||
(2) All Roads located in Palo Pinto County | ||
(approximately forty-six miles of Roads) shall be transferred to | ||
Palo Pinto County in twenty percent increments of the total mileage | ||
per year for five consecutive years. The first twenty percent | ||
increment shall be transferred on or before December 31, 2011, and | ||
each remaining twenty percent increment shall be transferred on or | ||
before December 31 of each subsequent year, but not before January 1 | ||
of such year unless approved by an order or resolution of the Palo | ||
Pinto County Commissioners Court, with the final twenty percent | ||
increment being transferred on or before December 31, 2015, but not | ||
before January 1, 2015, unless approved by an order or resolution of | ||
the Palo Pinto County Commissioners Court. | ||
(3) Authority or Purchaser, whichever is applicable, | ||
in consultation with the Palo Pinto County Commissioner or | ||
Commissioners who have jurisdiction over the Leased Tract, shall | ||
determine which Roads or portions thereof shall be transferred each | ||
year. | ||
(4) The transfer of any portion of the Roads located | ||
within the FERC Project Area shall be in accordance with the FERC | ||
License and may be in the form of a grant of a right-of-way or | ||
easement, unless otherwise authorized by the Federal Energy | ||
Regulatory Commission. | ||
(5) Beginning on the date of transfer, the Authority | ||
or Purchaser, whichever is applicable, shall no longer have any | ||
obligations regarding such Roads. The Roads shall be transferred | ||
in their "as-is" condition and neither the Authority nor the | ||
Purchaser shall have any obligation to ensure that the Roads, or any | ||
portion thereof, comply with the standards in effect at the time of | ||
transfer in the applicable county for like roads currently | ||
maintained by that county. | ||
(6) Concurrently with the transfer in each year of a | ||
portion of the Roads, the Authority or Purchaser, as applicable, | ||
shall transfer to Palo Pinto County the amount, rounded to the | ||
nearest dollar, computed by multiplying $200,000 by a fraction the | ||
numerator of which is the number of miles of Roads located in and | ||
transferred to Palo Pinto County in that year and the denominator of | ||
which is the total number of miles of Roads located in and | ||
transferred or to be transferred to Palo Pinto County. For every | ||
other county in which a portion of the Roads is located, the | ||
Authority or Purchaser, as applicable, shall transfer an amount | ||
equal to (A) the per mile road payment (as defined below) multiplied | ||
by (B) the number of miles of the Roads located in such county. As | ||
used in this subdivision, "per mile road payment" means the amount, | ||
rounded to the nearest dollar, computed by dividing $200,000 by the | ||
total number of miles of Roads located in and transferred or to be | ||
transferred to Palo Pinto County pursuant to this subsection. | ||
(7) Notwithstanding any provision in this subsection | ||
to the contrary, the Authority or Purchaser, as applicable, shall | ||
retain ownership of any portion of a Road that is inaccessible to | ||
the public. For purposes of this subdivision, a portion of the Road | ||
is considered inaccessible to the public if, as of the effective | ||
date of the Act enacting this section, the public can only access | ||
such portion of the Road by crossing property not owned by the | ||
Authority or Purchaser, as applicable, and not subject to an | ||
easement or other ownership interest that allows the public to | ||
cross such property without restriction. If a retained portion of a | ||
Road subsequently becomes accessible to the public, the Authority | ||
or Purchaser, as applicable, shall transfer such retained portion, | ||
including any interest the Authority or Purchaser has in any | ||
additional Road constructed or acquired by the Authority or | ||
Purchaser in order to make the retained portion of the Road | ||
accessible to the public, to the applicable county in accordance | ||
with the process set forth in this subsection, or in the event such | ||
portion of the Road becomes accessible to the public after December | ||
31, 2015, within one (1) year of such retained portion of the Road | ||
becoming accessible. | ||
(h) Platting. A sale of the Leased Tract under this section | ||
shall not be subject to Chapter 232, Local Government Code, or any | ||
other platting requirement. | ||
(i) Mineral Interests. The Authority shall reserve its | ||
interest in all oil, gas, and other minerals in and under the Leased | ||
Tract (or any portion thereof) sold under this section. | ||
(j) Expiration of Requirement to Sell. The requirement that | ||
the Authority conduct a sale of the Remaining Leased Tract under | ||
Subsection (b) or (c) expires on December 31, 2016, if the FERC | ||
License is not terminated by decommissioning or otherwise. | ||
SECTION 5. Subsection (h), Section 8502.0132, Special | ||
District Local Laws Code, is repealed. | ||
SECTION 6. If the provisions of Section 8502.0132 or | ||
8502.020, Special District Local Laws Code, as amended by this Act, | ||
or Section 8502.0133, Special District Local Laws Code, as added by | ||
this Act, conflict with any other provision of Chapter 8502 of that | ||
code, then the provisions of Section 8502.0132, 8502.0133, or | ||
8502.020, as applicable, prevail. | ||
SECTION 7. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2013. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 918 passed the Senate on | ||
March 21, 2013, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 23, 2013, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 918 passed the House, with | ||
amendment, on May 20, 2013, by the following vote: Yeas 147, | ||
Nays 0, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |