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Home My WebLink AboutCCmin2019-02-26ANNA CITYCOUNCIL MINUTES WORK SESSION February 26, 2019 The City Council of the City of Anna met in Work Session on the above date at Anna City Hall, located at 111 North Powell Parkway (Hwy 5), to consider the following items. 1. Call to Order, Roll Call and Establishment of Quorum Mayor Pike called the meeting to order at 6:30 p.m. Council Member's Toten and Reeves were absent. Chairperson Johnson called the Planning and Zoning Commission meeting to order at 6:30 p.m. Commissioner's Henke and Callaham were absent. 2. Discuss the National League of Cities Service Line Warranty Program which provides a voluntary insurance program to our residents to cover service lines, which may include water lines, sewer lines and in-house lines depending upon the options desired. Nationwide a water main breaks every two minutes. The same elements that cause those failures also exist on our residents' private lines: age of lines, deteriorating pipe material, freezing and thawing, ground shifting. This program provides an optional, proactive solution to a problem that is bound to strike our residents at some point in time. When private service lines break or leak, many homeowners call the city first and are often surprised and frustrated to learn that the city can't help. Educational marketing about homeowners' responsibility for service lines is a key component of the program. Studies show that most Americans do not have enough savings to cover an emergency repair cost that could be from hundreds to as much as $3,500 or more. I n addition, many can be overwhelmed by having to find a trustworthy contractor. This program provides affordable repair plans backed by vetted, local -area contractors, keeping dollars in the local economy. At no cost to the city, the Program offers affordable protection for in -home plumbing and external water and sewer lines that will cover the cost of repairing leaks, breaks and clogs. 3 4. The program features generous coverage amounts, and there is never a service fee or deductible. There are no annual or lifetime limits, just peace of mind for the homeowner. Contractors dispatched to the homeowner's residence undergo a rigorous background check before being accepted into the network. Contractors are local to the community to help keep money in the local economy. The National League of Cities (NLC) Service Line Warranty Program is debunking the myths by educating homeowners about their service line responsibilities while offering affordable options for emergency home repair coverage. More than 400,000 homeowners from 600+ partner cities, municipalities, utilities and associations across the country have saved over $64 million in service line repair costs with the NLC Service Line Warranty Program. Depending upon participation in the program, it can generate a rebate to the city based upon the options chosen. JOINT MEETING Presentation and Discussion with the Planning and Zoning Commission. Planning Director Maurice Schwanke reviewed the responsibilities and actions of the Planning and Zoning Commission. CLOSED SESSION (EXCEPTIONS) Under Tex. Gov't Code Chapter 551, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. Consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §5510071). b. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); city facilities; acquisition of easements c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code §551.087); possible incentive agreements with property developers; pending negotiations on development agreements. d. Deliberation regarding security devices or security audits. (Tex. Gov't Code §551.076 and §551.089). None. The Council further reserves the right to enter into executive session at any time throughout any duly noticed meeting under any applicable exception to the Open Meetings Act. 5. Consider/Discuss/Action on any items listed on any agenda —work session, regular meeting, or closed session —that is duly posted by the City of Anna for any City Council meeting occurring on the same date as the meeting noticed in this agenda. None. 6. Adjourn. There being no further business before the Council, we will consider this meeting adjourned at p.m. Mayor Pike adjourned the Council meeting at 7:06 p.m. Chairperson Johnson adjourned the Commissioner's meeting at 7:06 p.m. Mayor Nate Pike ATTEST: ( A.z� ijs �I -i City Secretary Carrie L. Smith h 12, 2019. 1. 2. 3. 4. ANNACITYCOUNCIL MINUTES REGULAR SESSION February 26, 2019 Call to Order/Roll Call and Establishment of Quorum Mayor Pike called the meeting to order at 7:11 p.m. Council Member Toten was absent. Invocation and Pledge of Allegiance. Mayor Pike led the invocation and pledge. Citizen Comments. Citizens are allowed three minutes to speak. The Council is unable to respond to or discuss any issues that are brought up during this section that are not on the agenda, other than to make statements of specific factual information in nquirresponse to a citizen's inquiry or to recite existing policy in response to the iy. Andy Michrina, Fulbourne Dr -spoke in favor of a dog park. He had his service dog, Cleo with him as well. Receive reports from Staff or the City Council about items of community interest. Items of community interest include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen (but not including a change in status of a person's public office or public employment); a reminder about an upcoming event organized or sponsored by the goveming body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the goveming body or an official or employee of the municipality; and announcements involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. a. North Texas Municipal Water District (NTMWD) annual system maintenance / temporary change in water disinfectant. (Joseph Johnson) Staff provided a briefing regarding annual system maintenance planned by North Texas Municipal Water District (NTMWD). The NTMWD will temporarily change the disinfectant in its water treatment process from March 4 through April 1, 2019. 5. Consent Items. These items consist of non -controversial or "housekeeping" items required by law. Items may be considered individually by any Council member making such request prior to a motion and vote on the Consent Items. a. Approve Council Meeting Minutes for February 121 2019. (Carrie Smith) MOTION: Council Member Miller moved to approve the consent agenda. Council Member Tutson seconded. Motion carried 6-0. 6. Presentation by City's Financial Advisory/Bond Council regarding Resolution Approving a Preliminary Private Placement Memorandum for the Sale of "City of Anna, Texas Special Assessment Revenue Bonds, Series 2019 for Villages of Hurricane Creek development. (Dana Thornhill) Financial Adviser Jim Sabonis gave the Council a presentation. Exhibit 6A 7. Consider/Discuss/Action on a Resolution Approving a Preliminary Private Placement Memorandum for the Sale of "City of Anna, Texas Special Assessment Revenue Bonds, Series 2019 (Hurricane Creek Public Improvement District Improvement Area #1 Project)" (Dana Thornhill) RESOLUTION APPROVING A PRELIMINARY PRIVATE PLACEMENT MEMORANDUM FOR THE SALE OF "CITY OF ANNA, TEXAS SPECIAL ASSESSMENT REVENUE BONDS, SERIES 2019 (HURRICANE CREEK PUBLIC IMPROVEMENT DISTRICT IMPROVEMENT AREA#1 PROJECT)" MOTION: Council Member Tutson moved to approve. Council Member Beazley seconded. Motion carried 6-0. 8. Consider/Discuss/Action on a Resolution Approving a Preliminary Private Placement Memorandum for the Sale of "City of Anna, Texas Special Assessment Revenue Bonds, Series 2019 (Hurricane Creek Public Improvement District Major Improvement Area Project)" (Dana Thornhill) RESOLUTION APPROVING A PRELIMINARY PRIVATE PLACEMENT MEMORANDUM FOR THE ASSESSMENT REVENUE , MOTION: Mayor Pike moved to approve. Council Member Tucson seconded. Motion carried 6-0. 9. Consider/Discuss/Action on a Resolution approving an Impact Fee Credit Agreement for the construction of an over sized water line in the Anna Town Square development. (Maurice Schwanke) Anna Crossing AMC, LTD. (Skorburg Company) has submitted an application for the construction of an over -sized water line within their development. This water line is eligible for water impact fee credits. The credits are for the over -size of a water line from 8-inch to 12-inch. The water line has already been constructed. This credit agreement was anticipated in the original 2012-12-12 Subdivision Improvement Agreement. These credit agreements are normally applied for prior to construction, however, this one was not. A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING A SUBDIVISION IMPROVEMENT AGREEMENT WITH ANNA CROSSING AMC, LTD. MOTION: Council Member Miller moved to approve. Council Member Bryan seconded. Motion carried 6-0. 10. A) Conduct a public hearing to consider public comments regarding an Ordinance amendment to the Subdivision Rules and Regulations concerning the minimum lot size that can be platted when being serviced by a septic system. (Maurice Schwanke) B) Consider/Discuss/Action on an Ordinance amendment to the Subdivision Rules and Regulations concerning the minimum lot size that can be platted when being serviced by a septic system. This proposed Ordinance revision would bring the platting of septic served lots (mostly in the ETJ) in line with Collin County standards. The City's current standard is five acres when septic is used while the County standard is one acre. The most common instance is when a parent has a large tract and they want to give their child a one acre tract to build a house on. Mayor Pike opened the public hearing at 8:06 p.m. Steve Duprees, Keller Williams spoke in favor. Mayor Pike closed the public hearing at 8:08 p.m. AN ORDINANCE OF THE CITY OF ANNA, TEXAS, AMENDING THE ANNA CITY CODE OF ORDINANCES BY AMENDING PART III -A (SUBDIVISION REGULATIONS); PROVIDING FOR SAVINGS, SEVERABILITY, AND REPEALING CLAUSES; PROVIDING FOR AN EFFECTIVE DATE; PROVIDING FOR A PENALTY CLAUSE NOT TO EXCEED $2000 OR THE HIGHEST PENALTYAMOUNT ALLOWED BYLAW, WHICHEVER IS LESS; AND PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF, MOTION: Council Member Tutson moved to approve. Council Member Miller seconded. Motion carried 6-0. 11. Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute and administrate two Inter -local Agreements between the Cities of Anna and an Alstyne, and the Cities of Anna and Howe in which Van Alstyne and Howe agree to transfer a portion of their respective contractual minimum take or pay water obligation with the Greater Texoma Utility Authority to the City of Anna in exchange for an agreed payment from Anna. (Joseph Johnson) As members of the Collin -Grayson Municipal Alliance (CGMA), the cities of Anna, Melissa, Van Alstyne, and Howe each have a minimum take or pay (MT/P) agreement with Greater Texoma Utility Authority (GTUA) for the purchase of a certain amount of treated surface water annually. For the 2018 Water Year the City of Anna exceeded its MT/P. The Cities of Van Alstyne and Howe used very little of their MT/P and have excess capacity available. When a city exceeds the MT/P amount during a water year, the water exceeding the MT/P is sold at a lower rate but the MT/P for the next year resets to the amount used during the previous water year. Water purchased for the MT/P amount for the following year is charged at the normal NTMWD customer rate which is increasing each year. This results in higher future costs. In order to minimize the increase in our MT/P for the 2019 Water Year, the City of Anna has the option to purchase a portion of the unused MT/P from the cities of /an Alstyne and Howe at a blended rate which is the average between the discounted excess water rate and the regular customer rate. This methodology allows the City to acquire the water at a cost exceeding the excess rate but less than the regular customer rate while lessening future costs by lowering the following water year's MT/P. This also benefits the selling city in that they are able to recoup a portion of their MT/P costs for water that they did not use. If approved, the Inter -local Agreements will authorize the purchase of 12,637,000 gallons from the City of Van Alstyne ($20,471.94) and 26,151,600 gallons from the City of Howe ($42,365.59) for a total cost of $62,837,53, A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE AND ADMINISTRATE TWO INTER -LOCAL AGREEMENTS BETWEEN THE CITIES OF ANNA AND VAN ALSTYNE, AND THE CITIES OF ANNA AND HOWE IN WHICH VAN ALSTYNE AND HOWE AGREE TO TRANSFER A PORTION OF THEIR RESPECTIVE CONTRACTUAL MINIMUM TAKE OR PAYWATER OBLIGATION WITH THE GREATER TEXOMA UTILITY AUTHORITY TO THE CITY OF ANNA IN EXCHANGE FOR AN AGREED PAYMENT FROM ANNA MOTION: Council Member Beazley moved to approve. Council Member Tutson seconded. Motion carried 6-0. 12. Consider/Discuss/Action regarding a Resolution authorizing the City Manager to execute a contract with Lee Lewis Construction, Inc. of Dallas, Texas for Construction Manager At Risk (CMAR) services for the construction of the proposed Municipal Complex Project. (Joseph Johnson) In preparation for construction of the proposed Municipal Complex, the City 13. previously issued a Request For Proposals for Construction Manager at Risk (CMAR) services. Six proposals were received, interviews were conducted, and a staff committee recommended Lee Lewis Construction, Inc. for the project. Following that process, Council approved a Resolution on January 22, 2019 authorizing the City Manager to negotiate a contract with Lee Lewis Construction, I nc. of Dallas, Texas. The City Manager has negotiated the terms of a contract with Lee Lewis Construction, Inc. Further, the terms have been reviewed and approved by the City Attorney. The Pre -construction Services Fee is $253000, the Construction Phase Services Fee is 2.2% of the construction budget, and the Not -to -Exceed General Conditions Costs is $1,019,023. Funds are available for the Project in the combination Tax and Revenue Certificates of Obligation Series 2018, said funds being assigned for this A RESOLUTION OF THE CITY OF ANNA, TEXAS APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT WITH LEE LEWIS CONSTRUCTION, INC. OF DALLAS, TEXAS FOR CONSTRUCTION MANAGER AT RISK SERVICES FOR THE CITY OF ANNA MUNICIPAL COMPLEX PROJECT, MOTION: Council Member Tutson moved to approve subject to General Conditions Section 8.2.4 being defined. Council Member Beazley seconded. Motion carried 5-1. Miller opposed. CLOSED SESSION (EXCEPTIONS) Under Tex. Gov't Code Chapter 559, the City Council may enter into closed session to discuss any items listed or referenced on this agenda under the following exceptions: a. Consult with legal counsel regarding pending or contemplated litigation and/or on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551 of the Government Code (Tex. Gov't Code §5510071). b. Discuss or deliberate the purchase, exchange, lease, or value of real property (Tex. Gov't Code §551.072); city facilities; acquisition of easements c. Discuss or deliberate Economic Development Negotiations: (1) To discuss or deliberate regarding commercial or financial information that the City has received from a business prospect that the City seeks to have locate, stay, or expand in or near the territory of the City of Anna and with which the City is conducting economic development negotiations; or (2) To deliberate the offer of a financial or other incentive to a business prospect described by subdivision (1). (Tex. Gov't Code §551.087); possible incentive agreements with property developers; pending negotiations on development agreements. d. Deliberation regarding security devices or security audits. (Tex. Gov't Code §551.076 and §551.089). MOTION: Council Member Bryan moved to enter closed session. Council Member Miller seconded. Motion carried 6-0. Mayor Pike recessed the meeting at 8:25 p.m. Mayor Pike reconvened the meeting at 10:03 p.m. 14. Consider/Discuss/Action on any items listed on the posted agenda or any closed session occurring during this meeting, as necessary None. 15. Adjourn. None. App�veyYon Pike ATTEST: City Secretary Carrie L. Smith 12, 2019. if FaLOW t)t9 � C,11 CITY OF ANNA SPEAKER SIGN -IN FOR WELCOME TO THE ANNA CITY COUNCIL MEETING! �I1I/ if - �S 7_ t.c.,r,A e6 H .,f « k ffV%^ • Those wishing to address the City Council are asked to complete this form` . Please -present the form and ten (10) copies of any written notes or handouts to the City Secretary prior to the Regular meeting. Groups wishing to address the same issue are encouraged to select a spokesperson. • The Presiding Officer will ask those wishing to address the City Council to do so at the appropriate time. Please approach the speaker's stand, state your name and address for the record, and discuss the specific agenda item or topic of interest. Please direct your comments only to the Presiding Officer. Note: With the exception of public hearings, the City is not required by law to allow for citizen comment. Please be courteous and refrain from language or behavior that is disorderly or disruptive to the conduct of City business. • Although the City Council cannot take specific action on Citizens' Comments on items not on the Regular Agenda due to legal requirements, the City Council may: 1. Have the item placed on a future agenda for action; 2. Refer the item to the full City Council or a subcommittee for further study; 3. Refer the item to staff for study or conclusion. We appreciate your interest in the community and hope you will visit again soon. 11 Name: r Date: Z l Address: for led City/State/Zip: %9/1/7a . 7x 773 CITIZENS' COMMENTS: This item is available for citizens to speak on any subject including items on the agenda that are not Public Hearing items. However, by State law, no action may be taken on the topic. The time limit is three minutes per speaker, not to exceed a total of fifteen minutes for all speakers. Note that the three -minute time limit applies to each speaker regardless of the number of items the speaker may choose to discuss. PLEASE PRO E THE TOPIC(S) YOU WILL DISCUSS UNDER THE "CITI ENS' COMMENT" ITEM: /� ee E'UBLIC HEARING Agenda Item # I wish to speak IN FAVOR of this item. 1 wish to speak IN OPPOSITION to this item. I do not wish to speak. Please record my SUPPORT OPPOSITION. Additional Comments: January 1 S, 2018 Council Speaker Sign -In Sheet p U) V/ C H Do3)� �ok=:�, PRELIMINARY SERVICE AND ASSESSMENT PLAN VERSION 4.0 2/7/19 Tableof Contents............................................................................................................................ 1 Introduction.................................................................................................................................... 2 SectionI: Definitions....................................................................................................................... 3 Section II: The District..................................................................................................................0 10 Section III: Authorized Improvements.......................................................................................... 10 SectionIV: Service Plan................................................................................................................. 12 Section V: Assessment Plan.......................................................................................................... 13 Section VI: Terms of the Assessments.......................................................................................... 17 Section VII: Assessment Roll......................................................................................................... 21 Section VIII: Additional Provisions................................................................................................ 21 Exhibits.......................................................................................................................................... 23 Exhibit A —District Map &Legal Description................................................................................ 24 Exhibit B — Improvement Area #1 Legal Description.................................................................... 26 Exhibit C — Major Improvement Area Legal Description.............................................................. 28 Exhibit D — Map of Improvement Area #1 & Major Improvement Area. 32 Exhibit E — Improvement Area #1 Assessment Roll...................................................................... 33 Exhibit F — Major Improvement Area Assessment Roll................................................................ 34 Exhibit G —Allocation of Authorized Improvements.................................................................... 35 ExhibitH —Service Plan................................................................................................................. 36 Exhibit I —Sources and Uses of Funds........................................................................................... 37 Exhibit J —Improvement Area #1 Estimated Annual Installments ............................................... 38 Exhibit K — Major Improvement Area Estimated Annual Installments ......................................... 39 Exhibit L — Lot Type 1 Estimated Annual Installments.................................................................. 40 Exhibit M — Lot Type 2 Estimated Annual Installments................................................................ 41 Exhibit N — Improvement Area #1 Allocation by Lot Type............................................................ 42 Exhibit 0 — Maps of Improvement Area #1 Improvements.......................................................... 43 Exhibit P — Maps of Major Improvements.................................................................................... 47 Exhibit Q—Allocation of Major Improvements............................................................................ 52 Exhibit R — Annual TIRZ Credit By Lot Type................................................................................... 53 HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 1 On November 13, 2018, the City of Anna (the "City") passed and approved Resolution No. 2018- 11-506 authorizing the establishment of the Hurricane Creek Public Improvement District (the "District") in accordance with Chapter 372, Texas Local Government Code, as amended (the "PID Act"), which authorization was effective upon publication as required by the PID Act. The purpose of the District is to finance the Actual Costs of Authorized Improvements that confer a special benefit on approximately 368.2 acres located within the City, as described by metes and bounds and depicted on Exhibit A. The District will be developed in three phases, the first phase containing 92.186 acres ("Improvement Area #1"), the second and third phases containing 276.014 acres ("Major Improvement Area"). Improvement Area #1 is legally described by metes and bounds on Exhibit B, and the Major Improvement Area is legally described by metes and bounds on Exhibit C. Improvement Area #1 and the Major Improvement Area are depicted on Exhibit D. The PID Act requires a service plan covering a period of at least five years and defining the annual indebtedness and projected cost of the Authorized Improvements (as updated, from time to time, a "Service Plan"). The Service Plan is contained in Section IV. The PID Act requires that the Service Plan include an assessment plan that assesses the Actual Costs of the Authorized Improvements against the District based on the special benefits conferred on the District by the Authorized Improvements (as updated, from time to time, an "Assessment Plan"). The Assessment Plan is contained in Section V. The PID Act requires an assessment roll that states the assessment against each parcel determined by the method chosen by the City Council of the City (the "City Council") (as updated from time to time and which may be in one or more parts, the "Assessment Roll"). The Assessment against each Parcel must be sufficient to pay the share of the Actual Costs of the Authorized Improvements apportioned to the Parcel and cannot exceed the special benefit conferred on the Parcel by such Authorized Improvements. The Assessment Roll for Improvement Area #1 is included as Exhibit E. The Assessment Roll for the Major Improvement Area is included as Exhibit F. Capitalized terms used in this Service and Assessment Plan (as amended from time to time, this "Service and Assessment Plan") shall have the meanings given to them in Section I unless otherwise defined in this Service and Assessment Plan or unless the context in which a term is used clearly requires a different meaning. Unless otherwise defined, a reference to a "Section" or an "Exhibit" shall be a reference to a Section of this Service and Assessment Plan or an Exhibit attached to and made a part of this Service and Assessment Plan for all purposes. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 2 SECTION• "Actual Costs" mean with respect to Authorized Improvements, the Owner's demonstrated, reasonable, allocable, and allowable costs of constructing such Authorized Improvements, as specified in a payment request in a form that has been reviewed and approved by the City. Actual Costs may include: (1) the costs incurred by or on behalf of the Owner (either directly or through affiliates) for the design, planning, financing, administration/management, acquisition, installation, construction and/or implementation of such Authorized Improvements; (2) the fees paid for obtaining permits, licenses, or other governmental approvals for such Authorized Improvements; (3) construction management fees equal to 4% of costs; (4) the costs incurred by or on behalf of the Owner for external professional costs, such as engineering, geotechnical, surveying, land planning, architectural landscapers, appraisals, legal, accounting, and similar professional services; (5) all labor, bonds, and materials, including equipment and fixtures, by contractors, builders, and materialmen in connection with the acquisition, construction, or implementation of the Authorized Improvements; (6) all related permitting and public approval expenses, architectural, engineering, and consulting fees, taxes, and governmental fees and charges. "Additional Interest" means the amount collected by application of the Additional Interest Rate. "Additional Interest Rate" means the 0.50% additional interest charged on Assessments pursuant to Section 372.018 of the PID Act. "Administrator" means an employee or designee of the City who shall have the responsibilities provided in this Service and Assessment Plan, the Indenture, or any other agreement or document approved by the City related to the duties and responsibilities of the administration of the District. The initial Administrator is P3Works, LLC. "Annual Collection Costs" mean the actual or budgeted costs and expenses related to the creation and operation of the District, the issuance and sale of PID Bonds, and the construction, operation, and maintenance of the Authorized Improvements, including, but not limited to, costs and expenses for: (1) the Administrator; (2) City staff, (3) legal counsel, engineers, accountants, financial advisors, and other consultants engaged by the City; (4) calculating, collecting, and maintaining records with respect to Assessments and Annual Installments; (5) preparing and maintaining records with respect to Assessment Rolls and Annual Service Plan Updates; (6) issuing, paying, and redeeming PID Bonds; (7) investing or depositing Assessments and Annual Installments; (8) complying with this Service and Assessment Plan and the PID Act with respect to the issuance and sale of PID Bonds, including continuing disclosure requirements; (9) the paying agent/registrar and Bond Trustee in connection with PID Bonds, including their respective legal counsel; and (10) administering the construction of the Authorized Improvements. Annual HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 3 Collection Costs collected but not expended in any year shall be carried forward and applied to reduce Annual Collection Costs for subsequent years. "Annual Installment" means the annual installment payment on the Assessment as calculated by the Administrator and approved by the City Council, that includes: (1) principal; (2) interest; (3) Annual Collection Costs; and (4) Additional Interest. "Annual Service Plan Update" means an update to the Service and Assessment Plan prepared no less frequently than annually by the Administrator and approved by the City Council. "Assessed Property" means any Parcel within the District against which an Assessment is levied. "Assessment" means an assessment levied against a Parcel within the District and imposed pursuant to an Assessment Ordinance and the provisions herein of this Service and Assessment Plan, as shown on an Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and in the PID Act. "Assessment Ordinance" means an ordinance adopted by the City Council in accordance with the PID Act that levies an Assessment. "Assessment Plan" assesses the Actual Costs of the Authorized Improvements against the District based on the special benefits conferred on the District by the Authorized Improvements, more specifically described in Section V. "Assessment Roll" means the Improvement Area #1 Assessment Roll, and/or the Major Improvement Area Assessment Roll, or any other Assessment Roll in an amendment or supplement to this Service and Assessment Plan. "Authorized Improvements" means improvements of which estimated costs are shown on Exhibit G, and described in Section III as authorized by Section 372.003 of the PID Act. "Bond Trustee" means a trustee (or successor trustee) under the applicable Indenture. "City" means the City of Anna, Texas. "City Council" means the governing body of the City. "County" means Collin County, Texas. "Delinquent Collection Costs" mean costs related to the foreclosure on Assessed Property and the costs of collection of delinquent Assessments, delinquent Annual Installments, or any other delinquent amounts due under this Service and Assessment Plan including penalties and reasonable attorney's fees actually paid, but excluding amounts representing interest and penalty interest. "District" means the Hurricane Creek Public Improvement District containing approximately 368.2 acres located within the City, and more specifically described in Exhibit A. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 4 "District Formation and Bond Issuance Costs" means the costs and expenses directly associated with forming the District and costs of issuing a particular series of PID Bonds, including but not limited to, issuer fees, attorney fees, financial advisory fees, consultant fees, appraisal fees, printing costs, publication costs, City costs, fees charged by the Texas Attorney General, and any other cost or expense directly associated with the issuance of PID Bonds, including debt service reserve fund, capitalized interest and underwriter's discount. "Improvement Area" means specifically defined and designated portions of the District that are developed in phases, including Improvement Area #1. "Improvement Area #1" means approximately 92.186 acres located within the District, as shown on Exhibit D and more specifically described in Exhibit B. "Improvement Area #1 Annual Installment" means the annual installment payment on the Improvement Area #1 Assessment as calculated by the Administrator and approved by the City Council, that includes: (1) principal; (2) interest; (3) Annual Collection Costs; and (4) Additional Interest. "Improvement Area #1 Assessed Property" means any Parcel within Improvement Area #1 against which an Improvement Area #1 Assessment is levied. "Improvement Area #1 Assessment" means an Assessment levied against a Parcel within Improvement Area #1 and imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on the Improvement Area #1 Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and in the PID Act. "Improvement Area #1 Assessment Roll" means the Assessment Roll for the Improvement Area #1 Assessed Property within the District, as updated, modified or amended from time to time in accordance with the procedures set forth herein and in the PID Act, including any Annual Service Plan Updates, The Improvement Area #1 Assessment Roll is included in this Service and Assessment Plan as Exhibit E. "Improvement Area #1 Bonds" means those certain "City of Anna, Texas Special Assessment Revenue Bonds, Series 2019 (Hurricane Creek Public Improvement District Improvement Area #1 Project)" that are secured by Improvement Area #1 Assessments. "Improvement Area #1 Improvements" means the Authorized Improvements which only benefit the Improvement Area #1 Assessed Property and are described in Section III.A hereto and shown on Exhibit O. "Improvement Area #1 Initial Parcel" means all property located within Improvement Area #1, which is more particularly described on Exhibit B, against which the entire Improvement Area #1 Assessment is levied as shown on the Improvement Area #1 Assessment Roll, attached hereto as Exhibit E. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 5 "Improvement Area #1 Projects" means collectively: (1) the pro rata portion of the Major Improvements allocable to Improvement Area #1; (2) the Improvement Area #1 Improvements; and (3) District Formation and Bond Issuance Costs. "Indenture" means an Indenture of Trust entered into in connection with the issuance of each series of PID Bonds, as amended from time to time, between the City and a Bond Trustee setting forth terms and conditions related to a series of PID Bonds. "Lot" means for any portion of the District for which a final subdivision plat has been recorded in the official public records of the County, a tract of land described by "lot" in such final and recorded subdivision plat. "Lot Type" means a classification of final building Lots with similar characteristics (e.g. commercial, light industrial, multi -family, single family residential, etc.), as determined by the Administrator and confirmed by the City Council. In the case of single family residential Lots, the Lot Type shall be further defined by classifying the residential Lots by the estimated final average home value of the Lot as of the date of the recorded subdivision plat as determined by the Administrator and confirmed by the City Council. "Lot Type 1" means a Lot in Improvement Area #1 designated as such on the Improvement Area #1 Assessment Roll, marketed to homebuilders as a 70' Lot. "Lot Type 2" means a Lot in Improvement Area #1 designated as such on the Improvement Area #1 Assessment Roll, marketed to homebuilders as an 80' Lot. "Major Improvement Area" means approximately 276.014 acres located within the District, and more specifically described in Exhibit C. "Major Improvement Area Annual Installment" means the annual installment payment on the Major Improvement Area Assessment as calculated by the Administrator and approved by the City Council, that includes: (1) principal; (2) interest; (3) Annual Collection Costs; and (4) Additional Interest. "Major Improvement Area Assessed Property" means any Parcel within the Major Improvement Area against which an Assessment is levied. "Major Improvement Area Assessment" means an assessment levied against a Parcel within the Major Improvement Area and imposed pursuant to an Assessment Ordinance and the provisions herein, as shown on the Major Improvement Area Assessment Roll, subject to reallocation upon the subdivision of such Parcel or reduction according to the provisions herein and in the PID Act. "Major Improvement Area Assessment Roll" means the Assessment Roll for the Major Improvement Area Assessed Property within the District, as updated, modified or amended from time to time in accordance with the procedures set forth herein and in the PID Act, including any HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 6 Annual Service Plan Updates, The Major Improvement Area Assessment Roll is included in this Service and Assessment Plan as Exhibit F. "Major Improvement Area Bonds" means those certain "City of Anna, Texas Special Assessment Revenue Bonds, Series 2019 (Hurricane Creek Public Improvement District Major Improvement Area Project)" that are secured by Major Improvement Area Assessments. "Major Improvement Area Initial Parcel" means the all property located within the Major Improvement Area, which is more particularly described by metes and bounds on Exhibit C, against which the entire Major Improvement Area Assessment is levied as shown on Major Improvement Area Assessment Roll attached hereto as Exhibit F. "Major Improvement Area Projects" means: (1) the pro rata portion of the Major Improvements allocable to the Major Improvement Area; and (2) District Formation and Bond Issuance Costs. "Major Improvements" means those Authorized Improvements that confer special benefit to all the Assessed Property within the District, and as further described in Section III.C. "Maximum Assessment" means (1) for each Lot designated as Lot Type 1 or Lot Type 2, an amount that will not exceed the amount shown on Exhibit N. In the event a final plat creates a new Lot Type that differs from what is shown on Exhibit N, this Service and Assessment Plan will be updated to reflect the new Lot Type, and the Maximum Assessment for the new Lot Type created by the revised plat shall be the highest practical amount that results in a total tax rate of $3.09 per $100 of estimated buildout value (after the TIRZ No. 2 Annual Credit Amount, as such term is defined in Section V.G.) for each new Lot Type, taking into consideration the tax rate of all taxing entities. The Maximum Assessment shall only be calculated upon the recording of a final plat in the official public records of the County; and (2) for each future Lot Type within the Major Improvement Area, the highest practical amount that results in a total tax rate of $3.09 per $100 of estimated buildout value (after TIRZ Annual Credit Amount) for each new Lot Type. The Maximum Assessment for each future Lot Type shall only be calculated upon the recording of a final plat with the County. "Non -Benefited Property" means Parcels within the boundaries of the District that accrue no special benefit from the Authorized Improvements. Property is idened as Non-Benefitted Property at the time the Assessments are (1) imposed or (2) reallocated pursuant to a subdivision of a Parcel that is not assessed. "Owner" means CADG Hurricane Creek, LLC, a Texas limited liability company, and any successor owner of property in the District or any portion thereof. "Parcel" or "Parcels" means a specific property within the District identified by either a tax map identification number assigned by the Collin Central Appraisal District for real property tax purpose, by metes and bounds description, or by lot and block number in a final subdivision plat HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 7 recorded in the official public records of the County, or by any other means determined by the City. "PID Act" means Chapter 372, Texas Local Government Code, as amended. "PID Bonds" means any bonds issued by the City in one or more series and secured in whole or in part by Assessments. "Prepayment" means the payment of all or a portion of an Assessment before the due date thereof. Amounts received at the time of a Prepayment which represent a payment of principal, interest, or penalties on a delinquent installment of an Assessment are not to be considered a Prepayment, but rather are to be treated as the payment of the regularly scheduled Assessment. "Prepayment Costs" means interest, including Additional Interest, and Annual Collection Costs to the date of Prepayment. "Service and Assessment Plan" means this Hurricane Creek Public Improvement District Service and Assessment Plan as amended from time to time. "Service Plan" covers a period of at least five years and defines the annual indebtedness and projected costs of the Authorized Improvements. "TIRZ No. 2" means Tax Increment Reinvestment Zone No. 2, City of Anna, Texas created by the City pursuant to TIRZ Creation Ordinance No. on March 12, 2019. "TIRZ" means a tax increment reinvestment zone created by the City for the benefit of each Improvement Area. "TIRZ Act" means Chapter 311, Texas Tax Code, as amended. "TIRZ Agreement" means an agreement between the City and the Developer relating to a TIRZ Annual Credit Amount. "TIRZ Annual Credit Amount" means, for each year, the amounts paid by the City from a TIRZ Fund to reduce an Annual Installment, which amount will be calculated pursuant to a TIRZ Agreement for each TIRZ, not to exceed the amount described in Section V.G.2. "TIRZ Creation Ordinance" means an ordinance adopted by the City Council creating a TIRZ and a TIRZ Fund. "TIRZ Final Plan" means a Final Project and Financing Plan for a TIRZ, adopted by the City Council in accordance with the TIRZ Act, as the same may be amended from time to time. "TIRZ Plan Ordinance" means an ordinance adopted by the City Council approving a TIRZ Final Plan and authorizing the use of TIRZ Revenues for project costs related to certain public HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 2 improvements under the TIRZ Act, as provided for in the TIRZ Final Plan. "TIRZ Fund" means the tax increment fund created pursuant to a TIRZ Creation Ordinance. "TIRZ Revenues" mean, for each year, the amounts which are deposited in the TIRZ Fund pursuant to the TIRZ Final Plan Ordinance, as described in the TIRZ Final Plan, and the TIRZ Agreement. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 9 SECTION II: THE DISTRICT The District includes approximately 368.200 contiguous acres located within the City, as more particularly described by metes and bounds on Exhibit A. Development of the District is anticipated to include approximately 654 single-family homes. Improvement Area #1 includes approximately 92.186 contiguous acres located within the City, as more particularly described by metes and bounds on Exhibit B. Development of Improvement Area #1 is anticipated to include approximately 215 single-family homes. The Major Improvement Area includes approximately 276.014 contiguous acres located within the City, as more particularly described by metes and bounds on Exhibit C. Development of the Major Improvement Area is anticipated to include approximately 439 single-family homes. SECTION III: AUTHORIZED IMPROVEMENTS The City Council, based on information provided by the Owner and its engineer and reviewed by the City staff and by third -party consultants retained by the City, has determined that the costs described below are costs of Authorized Improvements, as defined by the PID Act, that confer a special benefit on the Assessed Property. Allocation of the Authorized Improvements is shown on Exhibit G. A. Improvement Area #1 Improvements All Improvement Area #1 Improvements will be designed and constructed in accordance with City standards and specifications and will be owned and operated by the City. ■ Street Improvements Improvements including subgrade stabilization (including lime treatment and compaction), concrete and reinforcing steel for roadways, testing, handicapped ramps, and street lights. All related earthwork, excavation, erosion control, retaining walls, intersections, signage, lighting and re -vegetation of all disturbed areas within the right- of-way are included. The street improvements will provide street access to each Lot within Improvement Area #1. ■ Water Improvements Improvements including trench excavation and embedment, trench safety, PVC piping, manholes, service connections, testing, related earthwork, excavation, and erosion control all necessary appurtenances required to provide water service to each Lot within HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN so Improvement Area #1. ■ Sanitary Sewer Improvements Improvements including trench excavation and embedment, trench safety, PVC piping, manholes, service connections, testing, related earthwork, excavation, and erosion control all necessary appurtenances required to provide wastewater service to each Lot within Improvement Area #1. ■ Storm Drainage Improvements Improvements including earthen channels, swales, curb and drop inlets, RCP piping and boxes, headwalls, concrete flumes, rock rip rap, concrete outfalls, and testing as well as all related earthwork, excavation, and erosion control necessary to provide storm drainage for each Lot in Improvement Area #1. B. Major Improvements All Major Improvements will be designed and constructed in accordance with City standards and specifications and will be owned and operated by the City. ■ Street Improvements Improvements include construction of perimeter road and thoroughfare improvements, including related paving, drainage, curbs, gutters, sidewalks, retaining walls, signage, and traffic control devices. ■ Water Distribution System Improvements Improvements consist of construction and installation of water lines, mains, pipes, valves and appurtenances necessary for the water distribution system, as well as related testing, trench safety and erosion protection, necessary to service the District. ■ Sanitary Sewer Improvements Improvements consist of construction and installation of pipes, service lines, manholes, encasements and appurtenances necessary to provide sanitary sewer service to the District. ■ Storm Drainage Improvements Improvements consist of reinforced concrete pipes, reinforced concrete boxes, and multi - reinforced box culverts. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 11 C. District Formation and Bond Issuance Costs ■ Cost of Issuance Includes costs of issuing a particular series of PID Bonds, including but not limited to issuer fees, attorney fees, financial advisory fees, consultant fees, appraisal fees, printing costs, publication costs, City costs, fees charged by the Texas Attorney General, and any other cost or expense directly associated with the issuance of PID Bonds, including: ■ Debt Service Reserve Fund Equals the amount required under an Indenture in connection with the issuance of a particular series of PID Bonds. ■ Capitalized Interest Equals the amount required under an Indenture in connection with the issuance of a particular series of PID Bonds. ■ Underwriter's Discount Equals a percentage of the par amount of a particular series of PID Bonds plus a fee for underwriter's counsel. ■ District Formation Includes 15t year District administration reserves, costs and expenses directly associated with forming the District. SECTION IV: SERVICE PLAN The PID Act requires the Service Plan to cover a period of at least five years. The Service Plan is required to define the annual projected costs and indebtedness for the Authorized Improvements undertaken within the District during the five-year period. The Service Plan must be reviewed and updated, at least annually, and approved by the City Council. Exhibit H summarizes the Service Plan for the District. Exhibit I summarizes the sources and uses of funds required to construct the Authorized Improvements and pay the District Formation and Bond Issuance Costs. The sources and uses of funds shown on Exhibit I shall be updated each year in the Annual Service Plan Update to reflect any budget revisions and Actual Costs. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 12 SECTION V: ASSESSMENT PLAN The PID Act allows the City Council to apportion the costs of the Authorized Improvements to the Assessed Property based on the special benefit received from the Authorized Improvements. The PID Act provides that such costs may be apportioned: (1) equally per front foot or square foot; (2) according to the value of property as determined by the City Council, with or without regard to improvements constructed on the property; or (3) in any other manner approved by the City Council that results in imposing equal shares of such costs on property similarly benefited. The PID Act further provides that the governing body may establish by ordinance or order reasonable classifications and formulas for the apportionment of the cost between the municipality or the City and the area to be assessed and the methods of assessing the special benefits for various classes of improvements. The determination by the City Council of the assessment methodologies set forth below is the result of the discretionary exercise by the City Council of its legislative authority and governmental powers and is conclusive and binding on the Owner and all future owners and developers of the Assessed Property, A. Assessment Methodology for Improvement Area #1 The City Council, acting in its legislative capacity based on information provided by the Owner and its engineer and reviewed by the City staff and by third -party consultants retained by the City, has determined that the Improvement Area #1 Projects shall be allocated to the Improvement Area #1 Assessed Property by spreading the entire Improvement Area #1 Assessment across all Improvement Area #1 Assessed Property based on the ratio of the estimated build out value of each Parcel within Improvement Area #1 to the estimated build out value for all Parcels within Improvement Area #1. B. Assessment Methodology for the Major Improvement Area The City Council, acting in its legislative capacity based on information provided by the Owner and its engineer and reviewed by the City staff and by third -party consultants retained by the City, has determined that the Major Improvement Area Projects shall be allocated to the Major Improvement Area Assessed Property by spreading the entire Major Improvement Area Assessment across all Major Improvement Area Assessed Property based on the ratio of the estimated build out value of each Parcel within the Major Improvement Area to the estimated build out value for all Parcels within the Major Improvement Area. C. Assessments The Improvement Area #1 Assessment will be levied on the Improvement Area #1 Initial Parcel in the amount shown on the Improvement Area #1 Assessment Roll, attached hereto as Exhibit HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 13 E. The projected Improvement Area #1 Annual Installments are shown on Exhibit J. Upon subdivision ofthe Improvement Area #1 Initial Parcel bythe recording of a final plat in the official public records of the County, Improvement Area #1 Assessment will be reallocated pursuant to Section VI. The Major Improvement Area Assessment will be levied on the Major Improvement Area Initial Parcel in the amount shown on the Major Improvement Area Assessment Roll, attached hereto as Exhibit F. The projected Major Improvement Area Annual Installments are shown on Exhibit K. Upon subdivision of the Major Improvement Area Initial Parcel by the recording of a final plat in the official public records of the County, the Major Improvement Area Assessment will be reallocated pursuant to Section VI. Exhibit N shows the estimated Assessment and Annual Installment for each Lot Type within Improvement Area #1. The projected Assessment and Annual Installment shown on Exhibit N are preliminary and are subject to change based on the land uses contained within the final plat, but in no case will the Assessment for any Lot Type exceed the Maximum Assessment. D. Findings of Special Benefit The City Council, acting in its legislative capacity based on information provided by the Owner and its engineer and reviewed by the City staff and by third -party consultants retained by City, has found and determined: ■ Improvement Area #1 ■ The costs of the Improvement Area #1 Projects equal $8,543,171 as shown on Exhibit G; and ■ The Improvement Area #1 Assessed Property receives special benefit from the Improvement Area #1 Projects equal to or greater than the Actual Cost of the Improvement Area #1 Projects; and ■ The Improvement Area #1 Initial Parcel will be allocated 100% of the Improvement Area #1 Assessment levied for the Improvement Area #1 Projects, which equal $7,375,000 as shown on the Improvement Area #1 Assessment Roll attached hereto as Exhibit E; ■ The special benefit (>_ $8,543,171) received by the Improvement Area #1 Initial Parcel from the Improvement Area #1 Projects is equal to or greater than the amount of the Improvement Area #1 Assessment ($7,375,000) levied on the Improvement Area #1 Initial Parcel for the Improvement Area #1 Projects; and ■ At the time the City Council approved the Service and Assessment Plan, the Owner owned 100% of the Improvement Area #1 Initial Parcel. The Owner acknowledged HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 14 that the Improvement Area #1 Projects confer a special benefit on the Improvement Area #1 Initial Parcel and consented to the imposition of the Improvement Area #1 Assessment to pay for the Actual Costs associated therewith. The Owner ratified, confirmed, accepted, agreed to, and approved: (1) the determinations and findings by the City Council as to the special benefits described herein and the Assessment Ordinance; (2) the Service and Assessment Plan and the Assessment Ordinance, and (3) the levying of the Improvement Area #1 Assessment on the Improvement Area #1 Initial Parcel. ■ Major Improvement Area ■ The costs of the Major Improvement Area Projects equal $3,765,000, as shown on Exhibit G; and ■ The Major Improvement Area Assessed Property receives special benefit from the Major Improvement Area Projects equal to or greater than the Actual Cost of the Major Improvement Area Projects; and ■ The Major Improvement Area Initial Parcel will be allocated 100% of the Major Improvement Area Assessment levied for the Major Improvement Area Projects, which equal $3,765,000 as shown on the Major Improvement Area Assessment Roll attached hereto as Exhibit F; ■ The special benefit (>_ $3,765,000) received by the Major Improvement Area Initial Parcel from the Major Improvement Area Projects is greater than or equal to the amount of the Major Improvement Area Assessment ($3,765,000) levied on the Major Improvement Area Initial Parcel for the Major Improvement Area Projects; and ■ At the time the City Council approved the Service and Assessment Plan, the Owner owned 100% of the Major Improvement Area Initial Parcel. The Owner acknowledged that the Major Improvement Area Projects confer a special benefit on the Major Improvement Area Initial Parcel and consented to the imposition of the Major Improvement Area Assessments to pay for the Actual Costs associated therewith. The Owner has ratified, confirmed, accepted, agreed to, and approved: (1) the determinations and findings by the City Council as to the special benefits described herein and the Assessment Ordinance; (2) the Service and Assessment Plan and the Assessment Ordinance, and (3) the levying of Major Improvement Area Assessment on the Major Improvement Area Initial Parcel, HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 15 E. Annual Collection Costs The Annual Collection Costs shall be paid for by each Parcel pro rata based on the ratio of the amount of outstanding Assessment remaining on the Parcel to the total outstanding Assessment. The Annual Collection Costs shall be collected as part of and in the same manner as Annual Installments in the amounts shown on the Assessment Roll, which may be revised based on actual costs incurred in Annual Service Plan Updates. F. Additional Interest The interest rate on Assessments levied on the Assessed Property may exceed the interest rate on the PID Bonds by the Additional Interest Rate. Additional Interest shall be collected as part of each Annual Installment and shall be deposited into a reserve account and segregated from other funds of the City, pursuant to the Indenture. G. TIRZ No. 2 Annual Credit Amount In accordance with the TIRZ Final Plan Ordinance and the TIRZ Agreement for TIRZ No. 2, the City Council has agreed to use a portion of TIRZ Revenues generated from TIRZ No. 2 to reduce the Improvement Area #1 Annual Installment for all Improvement Area #1 Assessed Property (the "TIRZ No. 2 Annual Credit Amount") based on the desire of the City Council to maintain a competitive, composite ad valorem equivalent tax rate taking into consideration the tax rates of all applicable taxing units and the equivalent tax rate of the Improvement Area #1 Annual Installment based on assumed buildout values. 1. The Improvement Area #1 Annual Installment for a Parcel shall be calculated from the previous tax year's TIRZ Revenues then on deposit in the TIRZ Fund for TIRZ No. 2 (i.e., TIRZ Revenues collected in 2019 shall be applied as the TIRZ No. 2 Annual Credit Amount applicable to Improvement Area #1 Annual Installments to be collected in 2020), but in no event shall the TIRZ No. 2 Annual Credit Amount exceed the amounts shown in Section V.G.2 as calculated on Exhibit R for each Parcel. 2. The TIRZ No. 2 Annual Credit Amount available to reduce the Improvement Area #1 Annual Installment for a Parcel is calculated for each Lot Type within Improvement Area #1, as shown on Exhibit R. The TIRZ No. 2 Annual Credit Amount is calculated so that the average Improvement Area #1 Annual Installment minus the TIRZ No. 2 Annual Credit Amount for each Lot Type does not produce an equivalent tax rate which exceeds the competitive, composite ad valorem equivalent tax rate ($3.09 per $100 of assessed value) taking into consideration the tax rates of all applicable taxing units and the equivalent tax rate of the Improvement Area #1 Annual Installments based on assumed buildout values at the time the City Council approves the Assessment Ordinance for Improvement Area #1. The TIRZ No. 2 HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 16 Annual Credit Amount for Lot Type 1 and Lot Type 2 will be calculated pursuant to the TIRZ Agreement for TIRZ No. 2, but in no event will the TIRZ No. 2 Annual Credit Amount for Lot Type 1 and Lot Type 2 exceed the amounts shown below: aI Maximum TIRZ No. 2 Annual Credit Amount for Lot Type 1: $1,173 b. Maximum TIRZ No. 2 Annual Credit Amount for Lot Type I 3. If the debt service on issued and outstanding Improvement Area #1 Bonds is reduced as the result of an economic refunding of those Improvement Area #1 Bonds, the Prepayment of Improvement Area #1 Assessments, or the redemption of Improvement Area #1 Bonds, then there would be a corresponding reduction in the Improvement Area #1 Assessment and the Improvement Area #1 Annual Installment; in which case the TIRZ No. 2 Annual Credit Amount will be recalculated according to Section V.G.2 above. In such case, the reduced Improvement Area #1 Assessment and Improvement Area #1 Annual Installment, as shown on the Improvement Area #1 Assessment Roll, shall be reflected in the next Annual Service Plan Update and approved by City Council. SECTION VI: TERMS OF THE ASSESSMENTS A. Reallocation of Assessments 1. Upon Division Prior to Recording of Subdivision Plat Upon the division of any Assessed Property (without the recording of subdivision plat), the Administrator shall reallocate the Assessment for the Assessed Property prior to the division among the newly divided Assessed Properties according to the following formula: A=Bx(C=D) Where the terms have the following meanings: A = the Assessment for the newly divided Assessed Property B = the Assessment for the Assessed Property prior to division C = the estimated buildout value of the newly divided Assessed Property D = the sum of the estimated buildout value for all of the newly divided Assessed Properties The calculation of the buildout value of an Assessed Property shall be performed by the Administrator and confirmed by the City Council based on information from the Owner, homebuilders, market studies, appraisals, official public records of the County, and any other relevant information regarding the Assessed Property. The calculation as confirmed by the City Council shall be conclusive. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 17 The sum of the Assessments for all newly divided Assessed Properties shall equal the Assessment for the Assessed Property prior to subdivision. The calculation shall be made separately for each newly divided Assessed Property. The reallocation of an Assessment for an Assessed Property that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in the next Annual Service Plan Update and approved by the City Council. 2. Upon Subdivision by a Recorded Subdivision Plat Upon the subdivision of any Assessed Property based on a recorded subdivision plat, the Administrator shall reallocate the Assessment for the Assessed Property prior to the subdivision among the new subdivided Lots based on buildout value according to the following formula: Where the terms have the following meanings: A = the Assessment for the newly subdivided Lot B = the Assessment for the Parcel prior to subdivision C = the sum of the estimated average buildout value of all newly subdivided Lots with same Lot Type D = the sum of the estimated average buildout value for all of the newly subdivided Lots excluding Non-Benefitted Property E= the number of Lots with same Lot Type Prior to the recording of a subdivision plat, the Owner shall provide the City an estimated buildout value as of the date of the recorded subdivision plat for each Lot created by the recorded subdivision plat considering factors such as density, lot size, proximity to amenities, view premiums, location, market conditions, historical sales, discussions with homebuilders, and any other factors that may impact value. The calculation of the estimated average buildout value for a Lot shall be performed by the Administrator and confirmed by the City Council based on information provided by the Owner, homebuilders, third party consultants, and/or the official public records of the County regarding the Lot. The sum of the Assessments for all newly subdivided Lots shall not exceed the Assessment for the portion of the Assessed Property subdivided prior to subdivision. The calculation shall be made separately for each newly subdivided Assessed Property. The reallocation of an Assessment for an Assessed Property that is a homestead under Texas law may not exceed the Assessment prior to the reallocation. Any reallocation pursuant to this section shall be reflected in the next Annual Service Plan Update and approved by the City Council. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 18 3. upon Consolidation If two or more Lots or Parcels are consolidated, the Administrator shall allocate the Assessments against the Lots or Parcels before the consolidation to the consolidated Lot or Parcel, which allocation shall be reflected in the next Annual Service Plan Update and approved by the City Council. B. Mandatory Prepayment of Assessments 1. Transfer to exempt person or entity If the Assessed Property is transferred to a person or entity that is exempt from payment of the Assessment, the owner transferring the Assessed Property shall pay to the City the full amount of the Assessment, plus Prepayment Costs and Delinquent Collection Costs, prior to the transfer. If the owner of the Assessed Property causes the Assessed Property to become Non -Benefited Property, the owner causing the change in status shall pay to the City the full amount of the Assessment, plus Prepayment Costs and Delinquent Collection Costs, prior to the change in status. 2. Maximum Assessment exceeded at plat Prior to the City approving a final subdivision plat, the Administrator will certify that such plat will not result in the Assessment per Lot for any Lot Type to exceed the Maximum Assessment. If the Administrator determines that the resulting Assessment per Lot for any Lot Type will exceed the Maximum Assessment, then (i) the Assessment applicable to each Lot Type shall each be reduced to the Maximum Assessment, and (ii) the person or entity filing the plat shall pay to the City the amount the Assessment was reduced, plus Prepayment Costs and Delinquent Collection Costs, prior to the City approving the final plat. C. Reduction of Assessments If as a result of cost savings or an Authorized Improvement not being constructed, the Actual Costs of completed Authorized Improvements are less than the Assessments, the City Council shall reduce each Assessment on a pro-rata basis such that the sum of the resulting reduced Assessments for all Assessed Properties equals the reduced Actual Costs. Excess PID Bond proceeds shall be applied to redeem outstanding PID Bonds. The Assessments shall not, however, be reduced to an amount less than the outstanding PID Bonds. The Administrator shall update (and submit to the City Council for review and approval as part of the next Annual Service Plan Update) the Assessment Roll and corresponding Annual Installments to reflect the reduced Assessments. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 19 D. Prepayment of Assessments The owner of the Assessed Property may pay, at any time, all or any part of an Assessment in accordance with the PID Act, Prepayment Costs, if any, may be paid from the Additional Interest. If an Annual Installment has been billed prior to the Prepayment, the Annual Installment shall be due and payable and shall be credited against the Prepayment. If an Assessment is paid in full, with interest: (1) the Administrator shall cause the Assessment to be reduced to zero and the Assessment Roll to be revised accordingly; (2) the Administrator shall cause the revised Assessment Roll to be approved by the City Council as part of the next Annual Service Plan Update; (3) the obligation to pay the Assessment and corresponding Annual Installments shall terminate; and (4) the City shall provide the owner with a recordable "Notice of PID Assessment Termination." If an Assessment is paid in part, with interest: (1) the Administrator shall cause the Assessment to be reduced and the Assessment Roll revised accordingly; (2) the Administrator shall cause the revised Assessment Roll to be approved by the City Council as part of the next Annual Service Plan Update; and (3) the obligation to pay the Assessment and corresponding Annual Installments shall be reduced. E. Payment of Assessment in Annual Installments Exhibit J shows the estimated Annual Installments for Improvement Area #1, and Exhibit K shows the estimated Annual Installments for the Major Improvement Area. Assessments that are not paid in full shall be due and payable in Annual Installments. Annual Installments are subject to adjustment in each Annual Service Plan Update. If any Parcel shown on the Assessment Roll is assigned multiple tax identification numbers, the Annual Installment shall be allocated pro rata based on the acreage of the property as shown by Collin Central Appraisal District for each tax identification number. The Administrator shall prepare and submit to the City Council for its review and approval an Annual Service Plan Update to allow for the billing and collection of Annual Installments. Each Annual Service Plan Update shall include updated Assessment Rolls and updated calculations of Annual Installments. The Annual Collection Costs shall be paid for by each Parcel pro rata based on the ratio of the amount of outstanding Assessment remaining on the Parcel to the total outstanding Assessment. Annual Installments shall be reduced by the Annual Credit Amount and any credits applied under an applicable Indenture, such as capitalized interest, interest earnings on account balances, and any other funds available to the Bond Trustee for such purposes. Annual Installments shall be collected by the City in the same manner and at the same time as ad valorem taxes. Annual Installments shall be subject to the penalties, procedures, and foreclosure sale in case of delinquencies as set forth in the PID Act and in the same manner as ad HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 20 valorem taxes for the City. The City Council may provide for other means of collecting Annual Installments. Assessments shall have the lien priority specified in the PID Act. Sales of the Assessed Property for nonpayment of Annual Installments shall be subject to the lien for the remaining unpaid Annual Installments against the Assessed Property, and the Assessed Property may again be sold at a judicial foreclosure sale if the purchaser fails to timely pay the non -delinquent Annual Installments as they become due and payable. The City reserves the right to refund PID Bonds in accordance with the PID Act. In the event of a refunding, the Administrator shall recalculate the Annual Installments so that total Annual Installments will be sufficient to pay the refunding bonds, and the refunding bonds shall constitute "PID Bonds." Each Annual Installment of an Assessment, including interest on the unpaid principal of the Assessment, shall be updated annually. Each Annual Installment shall be due when billed and shall be delinquent if not paid prior to February 1 of the following year. The initial Annual Installments relating to the PID Bonds shall be due when billed and shall be delinquent if not paid prior to February 1, 2020. SECTION VII: ASSESSMENT ROLL The Improvement Area #1 Assessment Roll is attached as Exhibit E. The Administrator shall prepare, and submit to the City Council for review and approval, proposed revisions to the Improvement Area #1 Assessment Roll and Improvement Area #1 Annual Installments for each Parcel as part of each Annual Service Plan Update. The Major Improvement Area Assessment Roll is attached as Exhibit F. The Administrator shall prepare, and submit to the City Council for review and approval, proposed revisions to the Major Improvement Area Assessment Roll and Major Improvement Area Annual Installments for each Parcel as part of each Annual Service Plan Update, SECTION VIII: ADDITIONAL PROVISIONS A. Calculation Errors If the owner of a Parcel claims that an error has been made in any calculation required by this Service and Assessment Plan, including, but not limited to, any calculation made as part of any Annual Service Plan Update, the owner's sole and exclusive remedy shall be to submit a written notice of error to the Administrator by December 11t of each year following City Council approval of the calculation; otherwise, the owner shall be deemed to have unconditionally approved and HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 21 accepted the calculation. Upon receipt of a written notice of error from an owner the Administrator shall provide a written response to the City Council and the owner within 30 days of such referral. The City Council shall consider the owner's notice of error and the Administrator's response at a public hearing, and within 30 days after closing such hearing, the City Council shall make a final determination as to whether an error has been made. If the City Council determines that an error has been made, the City Council shall take such corrective action as is authorized by the PID Act, this Service and Assessment Plan, the Assessment Ordinance, the Indenture, or is otherwise authorized by the discretionary power of the City Council. The determination by the City Council as to whether an error has been made, and any corrective action taken by the City Council, shall be final and binding on the owner and the Administrator. B. Amendments Amendments to this Service and Assessment Plan must be made by the City Council in accordance with the PID Act. To the extent permitted by the PID Act, this Service and Assessment Plan may be amended without notice to owners of the Assessed Property: (1) to correct mistakes and clerical errors; (2) to clarify ambiguities; and (3) to provide procedures to collect Assessments, Annual Installments, and other charges imposed by this Service and Assessment Plan. C. Administration and Interpretation The Administrator shall: (1) perform the obligations of the Administrator as set forth in this Service and Assessment Plan; (2) administer the District for and on behalf of and at the direction of the City Council; and (3) interpret the provisions of this Service and Assessment Plan. Interpretations of this Service and Assessment Plan by the Administrator shall be in writing and shall be appealable to the City Council by owners or developers adversely affected by the interpretation. Appeals shall be decided by the City Council after holding a public hearing at which all interested parties have an opportunity to be heard. Decisions by the City Council shall be final and binding on the owners and developers and their successors and assigns. D. Severability If any provision of this Service and Assessment Plan is determined by a governmental agency or court to be unenforceable, the unenforceable provision shall be deleted and, to the maximum extent possible, shall be rewritten to be enforceable. Every effort shall be made to enforce the remaining provisions. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 22 EXHIBITS The following Exhibits are attached to and made a part of this Service and Assessment Plan for all purposes: Exhibit A District Map &Legal Description Exhibit B Improvement Area #1 Legal Description Exhibit C Major Improvement Area Legal Description Exhibit D Map of Improvement Area #1 and Major Improvement Area Exhibit E Improvement Area #1 Assessment Roll Exhibit F Major Improvement Area Assessment Roll Exhibit G Allocation of Authorized Improvements Exhibit H Service Plan Exhibit I Sources and Uses of Funds Exhibit J Improvement Area #1 Annual Installments Exhibit K Major Improvement Area Annual Installments Exhibit L Lot Type 1 Annual Installments Exhibit M Lot Type 2 Annual Installments Exhibit N Improvement Area #1 Allocation by Lot Type Exhibit O Map(s) of Improvement Area #1 Improvements Exhibit P Map(s) of Major Improvements Exhibit Q Allocation of Major Improvements Exhibit R Annual TIRZ Credit by Lot Type HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 23 :r# 307 EXHIBIT A - DISTRICT MAP & LEGAL DESCRIPTION N 09°F2.'FF`F. 46M34 N23`i18'2T'W fi7_bT' 14"126,76101 105016, l;��I PELC�Tc�N �' ��a• toivr�ret N8fl°11'00'E 794,06' 59D`0Q'00'G, EXHIBIT A - DEP SDO' 10'ST'14+ 232,18' i f#7' N89"5S`12'E`�'b,'1 a84.31i' ft■59■97,09 a9, SWO6'39E R■70040' 55,96, ■20lx39' D■16`48'41" MOST 17141•w CD=204.65 P> , S 1542'02'%i, 121M$ in D=10°4V41' CBmS7`17'41' Y CLA020c ■11RAI'WCB�3`39 COO Cw116.3 R=700.03 Lti3`t 9'2■1011i9' CW'W 15'78'W U n CD■101�? av R=700.00' n M630,61' DW3`25'52" C'4R'40": i CD=518S19A0 F1■400.Dt7 S43°31'37'1V,310.13' ■25,b1' D■P,'02'48` C8=S43°40'02'W Cp=1a,41 SUU°5641t'E 2+&5.617' ...yzy! O�1 OF PROP VILLAGES �� HURRICANE CREEK 507.LYi' v HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 24 BEING all that certain tract of land situated In then Joseph fJoI Survey, Abstract Number 105, the John Coffman Survey, Abstract Number 197 the J. M. Kineade Survey, Abstract Number 509 ). W. Mitchel Survey, Abstract Number 565 the W. Rattan Survey, Abstract Number 752 and the T. Rattan Survey, Abstract Number 795, Collin �ourty, 1 exas and being all of a Called Lb1.41 acre tract as described by deed to Villages of Hurricane Creek, LP recorded in Volume 5430, Page 9864 of Countyy Records, Collin County, Texas and being part of a called 114.252 acre of land described by deed to Dan Collins, et al recorded in Valuate 5257, Page 4877 of said County Records and being more particularly described by metes and bounds as follows; BEGINNING at the southeast Corner of said 262.41 acre tract, in the west line of said 114.252 acre tract; THENCE 5 89`54'24"W, 2G$7.84 feet, THENCE N 00"04027"W, 387.21 feet; THENCE N 89°58'14"W, 849,21 feet; THENCE N 03033'44"E, 1188,00feet, THENCE N 88026'26"W, 365,15 feet; THENCE N 23`08027"W, 67.47 feet; THENCE N 02`48'15"E, 1930.31feet; THENCE N 89'52'55"E, 465.63 f'et; THENCE N 89015'32"E, 742.56 feet; THENCE S 900WOWE, 1755.97 feet to the northeast torrtcr of sald 262.41 acre tract of land and being the northwest corner of said 114,252 acre tract; THENCE N 89011'00"E, 794,06 feet; THENCE S OO`10'S7"1N, 212.18 feet; THENCE N 89056'12"E, 1184.36feet, THENCE S 01`06039"E, 55.96 feet to the beginning of a curie to the right; THENCE with Bald curve to the rlght, nn arc dietance of 20S.39 Feet, through a central angle of 16'48'41", having a radius of 700,00 feet, the long chord which bears S 0M7'41"W, 204,65 feet; THENCE 515`42'02"W, 121.60 feet; THENCE with said curve to the left, an arc distance of 205.39 feet, through a central ankle of 16`48'41", having a radius of 700,00 feet, the long chord which bears S O7 17'41"W, 204.65 feet; THENCE S 01006'39"E, 201,55 feet; THENCE with said curve to the right, an arc distance of 116,43 feet, through a central angle of 09431'48", having a radius of 699.99 feet, the long chord which bears S 03"33'15"W, 116.30feet; THENCE S 08025'09"W, 393,86 feet; 7NFNCF with calel rurvo to I lip loft, an arr rllstanra r,f ini ;4 foul thrrxigh a rontral angle of 08'19'23", having a radius of 700,03 feet, the long chord which bears 5 04'15'28"W 101.60 feet, THENCE 5 016`05'44"W, 1035.62 feet; THENCE with said curve to the right, an arc distance of 530.61 feet, through a central ankle of 43`25'S2", having a radius of 700.00 feet, the long chord which bears S 21 4V40"W, 519400 feet; THENCE 5 43431'37"W, 241.38 feet; THENCE with said curve to the right, an arc distance of 25,41 feet, through a central angle of OO102'49", having a radius of 400.00 feet, the long chord which bears 5 430002"W, 25.41 feet; THENCE N 89"44'50"W4 655406 feet; THENCE: 5 0005f'il"E, 265.80 feet to the Paint of Beginning and containing 'l fr,e737,378 square feet or 368.2 acres of land more or less. EXHIBIT Al - N1ETE� ANQ BQUNQS �i'I� �E LOTC�IV VILLAs�E� C� I III iANO :G LU TIGN'+ HURRICANE CREEK v�,or� ,umr�. u". s, norc.ss�m, w,ia u •; HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 25 EXHIBIT B - IMPROVEMENT AREA #1 LEGAL DESCRIPTION LEGAL DESCRIPTION BEND a tract of l;uid sihtated in the Jcreph Boyle Strn�y, Abstract NruuUer 105, ti�t.8. �1ttua 5iuvey, Abstract Mtmber 752, T. Rattan Stuvey, Abstract Number 7S2, acid the J. Coff=i Survey, Abstract Niunber 197, Collin Cotmty, Texas and being part of that tract of land described in deed to CADG Hturicatle Creek, LLC. recorded in Instnuneent Munber 20150529000631020 of the Official Public Records of Collin Comity, Texas and being ruore particularly described as follows: BEGII�'NIItiG at a Sr8" iron rod found for the nortl�east corner of a remainder tract `�UBIi Parhiers. LTD recorded iu%ohune 4292, Page 27 of staid Official Public Records and the eastemmost southeast corner of said CADG Hturicaae Creek, LLC tract; THENCE S S8'S8'?7" ltL',1910.f+3 feet tivitlt the scsttth line of said CADG tract to a 5+'8" iron rod 1�ith plastic cap stangtied'PELOTON` set; THENCE departing said south line of the CADG Hturicane Creek, LLC tract. N 00°15`27E, 421,11 feet to a 5i S" iron rod nth plastic cap stamped "PELOTON' set; HE N 46' 18'49" E, 320.76 feet to a Mal iron rod vAth plastic cap stamped "PELOTON' set: THENCE N 43°41'I 1" U 120.00 feet to a:A" iron rod xA2th plastic cap stamped "PELOTOV" set; THENCE S460l8'49" �G', 117.06 feet to a S+'8" iron rod vith pisastic cap stamped "PELOTON" set; THENCE N143°41'11" 1l', 50.00 feet to a 5,�" iron rod ��,ith plastic rap stamped "PELOTON" set; THENCE �146'' 18'49" E,145.00 feet to a 51Y" iron rod i4ith plastic can stamped "PELOTORr' set; THENCE Ni 43'=11'11" w,120.00 feet to a A" ironrod with plastic cap stamped "PELOTON" set; THENCE N 461 1T49" E, 570.00 feet to a 5r2" iron rod vith plastic cap stamped "PELOTON' set: THENCE N 43041411" W 170.00 feet to a 517" iron rod with plastic cap stamped `PELOTON' set; THENCE N 46' 18'49" E, 2.17 feet to a SJS" iron rod ,%ith plastic cap stiuuped "PELOTON' set to the Ue_ ,� ,, 19 of a ctuve to the right; THENCE, nitlr said ctuve to the right, an arc distance of 47.91 feet, through a central angle of 05"54'131* , ha`-iug a radius of 465 A0 feet, the long chord bears N 49° 15'S6" E, 47.89 feet to a S+'8" iron rod i�ith plastic cap stamped "PELOTON' set; THENCE N 43 041111" tit, 163:73 feet to a 517 iron rod with plastic cap statnpecl "PELOTON' set; THENCE N 46° 1 S'49" E, 25923 feet to a 51" iron rod v,ith plastic cap stamped `'PELOTOPvr' let; THENCE �N189' 1307" E, 74L 15 feet to a 518" iron rod i,atli pi=ashc cap staqxd "FEW TON' set; THEINTCE S 23° 12'S8" E, 16.58 feet to a 5i 3" imn rod nith plastic cap stamped `-PELOTON' set; THENCE 4�189'feet to a St'8" on rod vith plastic cap stamped "PELOTON" set; HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 26 THENCE N 59°2633" E,195.37 fee# to a 54 iron rod with plastic cap stamped "PELO IONset;. THENCE N 89°13}07" E, 731.48 fleet to a IV iron rod with plastic cap stamped "PELOTON" set: THENCE S 0004653" E, 284.46 feet to a 513" iron rod with plastic cap stamped "PELOTON" set; THENCE N 89"13' 07" E, 525.00 feet to a 5.'r iron rod with plastic cap stamped "PELOTON" set; THENCE S 00°4653" E, 460.00 feet to a 5.A" iron rod vith plastic cap stamped "PELOTON" set THENCE S 89°13W" W,174.00 feet to a 54" iron rod with plastic cap stamped "PELOTON' set; THENCE S 41 °32'35" W7138.83 feet to a 5r8" iron rod %%ith plastic cap stamped "PELOTON" set; THENCE S 03°5649" W, 63.28 feet to a 5/8" iron rod with plastic cap stamped `PELOTON" set; THENCE S 20°4(Y36" VG, 64.06 feet to a 5/8" iron nod with plastic cap stamped "PELOTON' set; THENCE S 34031132" UG, 64.92 feet to a 518" iron rod with plastic cap stamped "PELOTON' set; THENCE S 56112T24" W, 66.49 feet to a 5/8" iron rod with plastic cap stamped "PEIOTONa set; THENCE S 55° 11109" W, 70.72 feet to a 51r iron rod ti),th plastic cap stamped "PELOTON" set; THENCE S 3300712" E, 131.90 feet to a M" iron rod tirith plastic cap stamped "PELOTON" set; TI3FNCE S 3601647" E, 50.00 feet to a 51T' iron rod xxith plastic cap stamped ' PELOTON' set; THENCE S 53°43'13" W 1.72 feet to a 5,'8" iron rod with plastic cap stamped PELOTON' set; THENCE S 36° 1647" E,163.61 feet to a 54" iron rod with plastic cap stamped "PELOTON" set in the east line of said CADG Hurricane Creek, LLC. Tract at the beginning of a em le to the right; THENCE with said tlutire to the right. an arc didance of 61.57 feet, throttei an angle of 45°42'21", having a radit� of 700.00 feet, and a long chord which bears S 56¢44'35" W, 61.55 feet to a Sa'8"iron and with plastic cap stamped' PELOTON' set THENCE S 5904M" W, 294.65 feet to a 5f$'° iron rod withplastic cap stamped "PELOTONN' .set; THENCE S 8902112" W, 424.50 feet to a 518" iron rod with plastic cap stamped "PELOTON' sett THENCE S 419P 1V E, 184.67 feet to the POINT` OF BEGNNING and crontaining 4,015,625 sTmie feet or 92.186 acres of land, mare or less. HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 27 EXHIBIT C - MAJOR IMPROVEMENT AREA LEGAL DESCRIPTION BEING a tract of land situated in the Joseph Boyle Survey, Abstract Number 105, W.S. Rattan Survey, Abstract Number 752, T. Rattan Survey, Abstract Number 782, and the J. Coffman Survey, Abstract Number 197, Collin County, Texas and being part of that tract of land described in deed to CADG Hurricane Creek, LLC, recorded in Instrument Number 20150529000631020 of the Official Public Records of Collin County, Texas and being more particularly described as follows: BEGINNING at the southernmost southeast corner of said CADG Hurricane Creek, LLC tract; THENCE S 89°54'24"W, 2,687.84 feet; THENCE N 00°04'27"W, 387.21 feet; THENCE N 89°58' 14"W, 849.21 feet; THENCE N 03°33'44"E, 1,188.00 feet; THENCE N 88°26'26"W, 365.15 feet; THENCE N 23°08'27"W, 67.47 feet; THENCE N 02°48' 15"E, 1,930.31 feet; THENCE N 89°52'S5"E, 465.63 feet; THENCE N 89°15'32"E, 742.56 feet; THENCE S 90000'0055E, 1,755.97 feet; THENCE N 89011'0035E, 794.06 feet; THENCE S 00010'S7"W, 232.18 feet; THENCE N 89°56' 12"E, 1184.36 feet; THENCE S 01006'39"E, 55.96 feet to the beginning of a curve to the right; THENCE with said curve to the right, an are distance of 205.39 feet, through a central angle of 16°48'41", having a radius of 700.00 feet, the long chord which bears S 07°17'41"W, 204.65 feet; THENCE S 15042'02"W, 121.60 feet to the beginning of a curve to the left; THENCE with said curve to the left, an arc distance of 205.39 feet, through a central angle of HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 28 16°4841 having a radius of 700.00 feet, the long chord which bears S 07°1 / 41W, 204.65 feet; THENCE S O1°0639E, 201.55 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance %J 116.43 feet, through a central angle of 09031'48", having a radius of 699.99 feet, the long chord which bears S 03°39' 15"W, 116.30 feet; THENCE S 08°25'09"W, 393.86 feet to the beginning of a curve to the left; THENCE with said curve to the left, an arc distance of 101.69 feet, through a central angle of 08019'23", having a radius of 700.03 feet, the long chord which bears S 04°15'28"W5 101.60 feet; THENCE S 00°OS'44"W, 1035.62 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance of 530.61 feet, through a central angle of 43025'52", having a radius of 700.00 feet, the long chord which bears S 21048'40"W, 518.00 feet; THENCE S 43°31'37"W, 241.38 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance of 25.41 feet, through a central angle of 00°0248 having a radius of 400.00 feet, the long chord which bears S 43°40'02"W, 25.41 feet, THENCE N 89°445S055W, 655.06 feet; THENCE S 00°56' 1155E, 265.80 feet to the Point of Beginning and containing 16,037,378 square feet or 368.2 acres of all more or less. SAVE AND EXCEPT BEING a tract of land situated in the Joseph Boyle Survey, Abstract Number 105, W.S. Rattan Survey, Abstract Number 752, T. Rattan Survey, Abstract Number 782, and the J. Coffman Survey, Abstract Number 197, Collin County, Texas and being part of that tract of land described in deed to CADG Hurricane Creek, LLC, recorded in Instrument Number 20150529000631020 of the Official Public Records of Collin County, Texas and being more particularly described as follows: BEGINNING at the southernmost southeast corner of said CADG Hurricane Creek, LLC tract; THENCE S 88058'27" W, 1,910.63 feet; THENCE N 00015'27" E, 421.11 feet; HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 29 THENCE N 46°1849 E, 320.76 feet; THENCE N 43°4111 W, 120.00 feet; THENCE S46° 18'49" W, 117.06 feet; THENCE N 43°41'11" W, 50.00 feet; THENCE N 46°18'49" E, 145.00 feet; THENCE N 43°41'11" W, 120.00 feet; THENCE N 46°18'49" E, 570.00 feet; THENCE N 43°41'11" W, 170.00 feet; THENCE N 46° 18'49" E, 2.17 feet to the beginning of a curve to the right; THENCE, with said curve to the right, an arc distance of 47.91 feet, through a central angle of 05054'13", having a radius of 465.00 feet, the long chord bears N 49°15'56" E, 47.89 feet; THENCE N 43°41'11" W, 163.78 feet; THENCE N 46°18'49" E, 259.23 feet; THENCE N 89°13'07" E, 741.15 feet; THENCE S 23 ° 12'S8" E, 16.5 8 feet; THENCE N 89013107" E, 140.84 feet; THENCE N 59026133" E, 195.37 feet; THENCE N 89013'07" E, 731.48 feet; THENCE S 00°46'S3" E, 284.46 feet; THENCE N 89013'07" E, 525.00 feet; THENCE S 00046'53" E, 460.00 feet; THENCE S 89013'07" W, 170.00 feet; THENCE S 01032'35" W, 138.83 feet; THENCE S 03056'49" W, 63.28 feet; HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 30 THENCE S 20°40'36" W, 64.06 feet; THENCE S 34031'32" W, 64.92 feet; THENCE S 56°29'24" W, 66.49 feet; THENCE S 55°11'09" W, 70.72 feet; THENCE S 33°07'12" E, 131.90 feet; THENCE S 36°16'47" E, 50.00 feet; THENCE S 53°43'13" W, 1.72 feet; THENCE S 36°16'47" E, 163.61 feet to the beginning of a curve to the right; THENCE with said curve to the right, an arc distance of 61.57 feet, tlu•ough an angle of 05002'21", having a radius of 700.00 feet, and a long chord which bears S 56°44'35" W, 61.55 feet; THENCE S 59°O1'02" W, 294.65 feet; THENCE S 89°21'12" W, 420.50 feet; THENCE S O1°31'10" E, 184.67 feet to the POINT OF BEGINNING and containing 4,015,625 square feet or 92.186 acres of land, more or less. "This document was prepared under 22 TAC 663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared." HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 31 EXHIBIT D - MAP OF IMPROVEMENT AREA #1 & MAJOR IMPROVEMENT AREA Ih1f'RC14Efr1EPITAREA Nl htAJ4R A1F'R�]VEh1Ea�FTrtiREA I'!11 PELOTON KANY lotpurloNi ..-�n.CW7Rp!SZ F!(�IIv,{[.,i�y(h71✓4i1}H'� VILLAGES QF HURRICANE CREEK r n 7Ir, 1CCI1 CPAPH/^ � c HURRICANE CREEK PRELIMINARY SERVICE AND ASSESSMENT PLAN 32 44 a, o. 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