Tax Code, firr(h&r finds and declares:

(1) That the proposed zone is a contiguous geographic area lQc4e-d wholly

within the corporate limits of the CITY OF P'FS1'fAS;

(2) That the total appraised value of taxable real property in the proposed zone

does not exceed liiteen percent of the total appraised value of taxable real

property in the City;

(3) That the proposed zone does not contain more than fifteen percent of the

total appraised value of real property taxable by 1-lidalgo County, the Ls.

Tolla Independent School District, tlie South Texas Independent School

District, the South Texas College District, and the Hidalgo County

Drainage District #1; and.

(4) That the development or redevelopment of the property in the proposed zone

will not occur solely through private investment in the reasonably foreseeable

future.

Section 2. Doinati4n of the Zone

That the City, acting under the provisions of. Chapter 311, Texas Tax Code,

including Section 311.005(a), does hereby designd.te as a reinvestment zone, and cre^

and. designate a reinvestment zone over, the area described in Exhibit "N' and depicted in

. the map attached hereto as Exhibit `B" to promote the redevelopment of the area. The

reinvestment zone shall hereafter be named for identification as Reinvestment Zone

Number One, CITY OF PERITAS, Texas, (the "Zone"). The City Council specifically

declares that the Zone is designated pursuant to Section 311,005(a)(1) and (2) of the

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1 -.1 1

'rexas Tax Code.

Section 3. Board of Directors

That there is hereby created a Board of Diir,ctors for the Zonc, vu'hich shall consist

of seven (7) members. Positions one through Five on the Board of Directors shall be

reserved for the City. Positions Six. and Seven shall. be reserved for other taAng units

levying taxes withiY-L the Zone, each of Whom may appoint one director. Any taxing unit

that appoints a director shall be assigned a Board position num.bOr in the order the City

receives the appointment. Failure of the County to appoiat a person to the Board of

Directors of the 7A)ne shall not be deemed a waiver of the CoMty's right to make an

appointment at a later date. Failure of any other taxing unit to appoint a director by June

15, 2005, shall be deemed a waiver of the right to appoint a director, and the City shall be

entitled to appoint persons to the position, which shall be Lilled as provided belc^w. If

more tllan two taxing units levying taxes within the Zone appoint a director, the number

of directors on the Board of Directors shall be increased by one for each taxing unit above

two that appoints a director to the board; provided, if more than four taxing units levying

taxes within the Zone appoint a director, the number of direotors on the Board of

Directors shall be increased by two for each taxing unit above four that appoints a

director to the board, provided, further., that the maximum number of directors shall not

exceed fifteen (15). The City shall be entitled to appoint a person to one position of each

of the two positions created as a result of more than four wdng units appointing directors,

wh.ich position shall be filled as provided below.

The Mayor is hereby authorized to nominate and appoint, subject to City Council

approval, the directors to Positions One, through Five of the Board of Directors, any

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position unfilled on Sune 15, 2005, and any City position created by the appointment of a

director by more than two taxinr units levying taxes within the Zone, subject to the

consent and approval of the City Council..

The directors appointed to odd-numbexed positions shall be appointed for two

year tems, beginning on the effective date of this Ordinance, while the directors

appointed to even-nu.xnbered positions shall be appointed to a one year term, beginning on

the effective date of this Ordinance.All subsequent appointments shall be for two-year

terms.The member of the Board of Directors appointed to Position One is hereby

designated to serve as the chair of the Board of Directors for a one-year term beginning

on the effective date of this Ordinftn.ce. Thereafter the Mayor sball annually nominate and

appoint, subject to City Council approval, a member to serve as chair for a term of one

year beginning on the anniversary of the effective date of this Ordinance.The City

Council authorizes the Board of Directors to elect from its members a vice-chairmen and

such other officers as the Board of Directors sees fit.

The Board of Directors shall make recommendations to the City Council

concerning the administration of the Zone. The Board of Directors shall prepare or cause

to be jx^eepared and adopt a project plan and a reinvestment zone financing plan for the

Zone as described in Section 311.011, Texas Tax Code, and shall submit such plans to

the City Council for its approval. The City hereby delegates to the Board of Directors all

powers necessary to prepare and implement the project plan and reinvestment zone

fit^^mcing plan,, subject to approval by the City Council, including the power to employ

any consultants or enter into any reimbursement agreements payable solely from the Tax

Increment Fund established pursuunt to Section. 6 of this Ordinance that may be

52

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reasonably necessary or convenient to assist the Board of Directors in the preparation of

the project plan and minvestment zone financing plan and in the issuance of tktx

increment obligations.

Section 4. Duration of tihe ^^ ►ne^

1. hat the Zone shall take effect immediately upon passage of the ordinance, for the

deposit of tax increments into the Tax Increment Fund established pursuant to Section 6

of this Ordinance, and termination of the operation of the Zone shall occur on December

31, 2034, or at an earlier time designated by subsequent ordinance, or at such time,

subsequent to the issuance, of tax increment bonds, if any, that all project costs, tax

increment bonds, notes and other obligations of the Zone, and the interest thereon, have

been paid in full.

Section 5. Tax IncrOM041

That pursuant to Section 311.012(c), Texas Tax Code, the Tax Increment Base Of

the City or any other taxing unit participating in the Zone for the Zone is the, total

appraised value of all real property taxable by the City or other taxing unit participating in

the Zone and located. in the Zone, determined as of January 1, 2004, the year in which the

Zone was designated as a reinvestment zone (the "Tax Increment Base").

Section 6. 'f'ax Xncrement Fuczd

That there is hereby created and established a Tax increment Fund for the Zone

which may be divided into subaccounts as authorized by subsequent ordinances. All Tax

53

1,In?J-4

Increments, as defined below, shall be deposited in the Tax Increment Fund. The Tax

Increment Fund and any suba.ccount shall be maintained at the depository bank of the City

and shall be secured in the manner prescribed by law for funds of Texas cities. The

anniial Tax increment shall equal the property taxes levied by the City and any other

taxing unit participating in the Zone for that year on the captured appraised value, as

defined by Chapter 311 of the Texas Tax Code, of real property located in Zone that is

taxable by the City or any other taxing unit participating in the Zone, less any amounts

that are to be allocated from the Tax increment pursuant to Chapter 311 of the Texas Tax

Code. All revenues from the sale of any tax increment bonds, notes or other obligations

hereafter issued for the benefit of the Zone by the City, if any; revenues from the sale of

property acquired as part of the project plan and reinvestment zone financing plan, if any;

and other revenues to be used in the Zone shall be deposited into the Tax Increment Fund.

Prior to the termination of the Zone, money shall be disbursed from the Tax Increment

Fund only to pay project costs, as defined by the Texas Tax Code, for the Zone, to satisfy

the claims of holders of tax increments bonds or notes issued for the Zone, or to pay

obligations incurred pursuant to agreements entered into to implement the project plan

and reinvestment zone financing plan and achieve their purpose pursuant to Section

311.014(b) of the Texas Tax Code.

Section 7. Scwerabilih'

If any provision, section, subsection, sentence, clause or phrase Of this OPdinan0e.

or the application of same to any person to set c'trcumstances, is for any reason held to be

unconstitutional,void or invalid, the validity of the remaining previsions of this

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Ordinance or their application to other persons or set of circumstances shall not be

affected thereby, it being the intent of the City Council in adopting this Ordinance that no

portion hereof or regulations connected herein shall become inoperative or fail by reason

of any unconstitutionality, voidness or invalidity of any portion hereof, and all provisions

of this Ordinance are declared severable for that purpose.

Section 8. Open 1E'Icgtgna9

it is hereby found, determined and declared that a sufficient wrxtteta notice of the

daw, hour, plaoe and subject of the meeting of the City Covncil at which this Ordinance

was adopted was posted at a place convenient and readily accessible at all times to the

general public at the City Hall of the City for the Time required by law preceding its

meeting, as required by the Open Meetings Law, Texas Government Code, ch. 551, and

that this meeting has been open to the public as requited by law at all times during which

this Ordinance and the subject matter hereof has been discussed, considered and formally

acted upon. The City Council further ratifies, approves and confirms such written notice

and the contents and posting thereof.

Sectioa 9. Notices

The contents of be notice of the public hearing, which hearing was held before

the City Council on Navember 3, 2004, and the publication of said notice, are hereby

ratzf-1,0d, and confttnn.ed,

PASSED AND ADOPTED this 1It' day of February, 2005.

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ft day of February, 2005.APPROVED this 1t

Mayor, Servando Ramirez

Cindy H=anclex, City Secrdary

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Penitas, TexasAn historical treasure with a great future

EXHIBIT

^

Revitalization Plan for the Diamond Avenue NeighborhoodApproved by the Penitas City CouncilJanuary 2, 2013

3 -

^^. _., .^ 4 . ..;:. _. ^. .. ^.... .. .. ..... .... . .. ..^^^._.. .... . ......_ ........ i;:.. .._:. ... ,^ :. .^..^^^ 57

Opening Statement

The City of Penitas is located off of FM 1427, 13 miles west of McAllen, Texas insouthwestern Hidalgo County. The City has been thought by many to be one of the oldest townsin the State of Texas. It was settled around the mid-1520s by a Catholic priest and five otherSpanish officers of the Panf lo de Narvaez expedition of 1520. The expedition was formed toarrest the conqueror of Mexico, Hernando Cortez, who was accused of treason against the Kingof Spain. The expedition failed after Narvaez and' his men were defeated in battle andimprisoned by Cortez. After been released, Narvaez and his men set off for Florida while FatherZamora and five men stayed behind and settled in Penitas. By 1850, Penitas had several rancheslocated within its boundaries and by 1904, the St. Louis, Brownville and Mexico Railways hadreached the town. The population of Penitas totaled approximately 100 people from 1925 to1948. During the 1950s, the population peaked to approximately 300 people before slowlydecreasing in the 1960s. By 1992, the town had an estimated population of 1,077. Today,Penitas is one of the fastest-growing cities in the Rio Grande Valley. Our population nearlyquadrupled between 2000 and 2010, as our City experiences unprecedented commercial growthand annexation. The total City area now includes approximately 3,100 acres of land. Attachedas Exhibit A is a map depicting the current boundary of the City of Penitas. Our goal is for thisgrowth to have a positive economic impact on our citizens, bringing prosperity and stability.

Background

Since 2004, the City has been working to improve its community by building andrepairing necessary infrastructure to encourage commercial and residential development andredevelopment activity. Lack of quality and available housing and retail centers have beendetrimental to those wanting to live and work in Penitas, and impedes the City's efforts to bringin businesses, shifting tax base from our city to surrounding communities.

In 2005, the City, the Hidalgo County Commission, La Joya ISD School District, theDrainage District, and several local and state leaders began working cooperatively, and aftermultiple public meetings, established the Penitas Tax Increment Reinvestment Zone #1 in thenorthern and eastern portion of the City. By, 2008, the City, County and TIRZ entered into anInterlocal Agreement covering the terms for the County's participation in the redevelopmentefforts within the Zone area. The purpose of the TIRZ is to provide financing for design andconstruction of streets, drainage facilities, sanitary sewer and water treatment facilities, and otherimprovements to encourage the development of single-family subdivisions and commercialbusiness. These efforts contributed to the location of a Walmart Supercenter within the TIRZ in2009.

Goals for Diamond Avenue Neiehborhood

In recent years, the City has been focusing on improving the Diamond AvenueNeighborhood. This is one of the oldest neighborhoods in Penitas, containing the EspanolaHeights subdivision, several scattered single family homes, the John K. Kennedy ElementarySchool, and a portion of the TIRZ area. It can be described as follows:

1

58

Bordered on the south by U.S. Highway 83 and the east by 23rd street; with thenorthern and western boundaries formed by the canal known as Irrigation DistrictNo. 6 (the "Neighborhood")

The Neighborhood is depicted on Exhibit B. It is bifurcated by Tom Gill Road. The portion ofthe Neighborhood to the east of Tom Gill Road is included in the TIRZ. The portion of theNeighborhood to the west of Tom Gill road is not. The City's vision for the Neighborhood wasshaped through a collaborative planning process. Input was received from residents and

businesses in the area, City staff and TIRZ representatives. This revitalization plan (this "Plan")reflects the common desire to revitalize the Neighborhood in a manner that leverages,compliments and overlaps the ongoing efforts in the TIRZ Zone.

Revitalization of this Neighborhood is important because:

â The natural drainage of this area goes from north to south causing flooding in theNeighborhood which has negatively impacted the Espanola Heights subdivision, theadditional scattered homes and future development in this area. Improvements to

Irrigation District No. 6, the drainage canal forming the north and west boundary of theNeighborhood, are essential to avoiding any future adverse impact on the existinghomeowners and will foster growth in this area. The need for drainage improvements inthis area has been the catalyst for targeting the Neighborhood for revitalization andcaused the City to focus, plan for and fund other revitalization efforts intended to

stimulate redevelopment in the Neighborhood.

â Streets in the Neighborhood are inadequate. It is imperative that certain streets beexpanded and improved to meet the needs of the Neighborhood and to make sure thetransportation flow serves the enhanced commercial and retail activity and growth within

this area.

â The Neighborhood is in the heart of an important growth area for the City but lackscertain key elements, including adequate housing and other public facilities. Additional

housing, specifically affordable rental housing, is needed in this area. The City of Penitasdoes not have any available affordable apartment units in its City. Therefore, those whoare looking for rental property often seek such housing in neighboring cities. Also, the

Neighborhood lacks public and recreational facilities that will stimulate new housingdevelopment activity desired in the area and that will ultimately support the growth ofretail and commercial businesses.

â The goals and initiatives of the TIRZ are complementary to, but not a substitute for, theimprovements needed in the Neighborhood.

â The John F. Kennedy Elementary School, in the Neighborhood, is academicallyrecognized but serving children who are mostly from economically disadvantaged

families and considered at-risk. Maintaining a healthy and stable environment aroundthis school is important to the educational development and performance of the currentand future students of the school.

2

59

â Other than the relatively new Walmart Supercenter, the Neighborhood lacks significantemployment opportunities.

Revitalization of the Neighborhood is ongoing. To enhance planning and communication ofobjectives, it is appropriate to set forth this Plan as a consolidation of prior efforts and a visionfor the future. The goal of this Plan is to provide the Neighborhood with improvements andincentives it needs to grow economically, prevent further deterioration of the existing singlefamily homes, encourage new housing activity, increase its tax base, and be a viable anddesirable place to live and work.

Plan Elements

The City's initiatives for improvement of the Neighborhood include:

Storm sewer and sanitary sewer improvements;

Drainage improvements;

Street expansion, lighting, and sidewalks;

Attracting housing including affordable rental housing; and

Encouraging additional commercial and retail development that is compatible with thecharacter of the Neighborhood.

Existing and planned activities associated with these initiatives in the Neighborhood include:

Storm sewer and sanitary sewer improvements were recently completed on DiamondAvenue, which runs east/west through the Neighborhood at an approximate cost of$200,000. Sanitary sewer improvements and a new lift station are in progress on LibertyBoulevard north of the John F. Kennedy Elementary School, with a total expected cost of$644,145. The sizing of these improvements are intended to benefit the revitalizationefforts in the Neighborhood. The City recently completed sanitary sewer, paving andcurb and gutter improvements to Espanola Drive to assist the Espanola Heightssubdivision. The City is also incorporating sidewalks, curb and gutter and street lightingalong this right of way. This work is ongoing and the City has budgeted to make a totalexpected capital investment for designing and constructing the improvements on andalong Espanola Drive of $525,625.

Drainage improvements are ongoing as a cooperative venture between our City, theCounty and several local and state agencies. This effort is a very expensive endeavor thatthe City has been involved in with Hidalgo County, the Irrigation District 6, and theGeneral Land Office through the Lower Rio Grande Valley Development Council(LRGVDC) to mitigate recurring flooding and drainage problems associated with theelevated canal acting as a dam for the flow of runoff from north to south. The drainage

3

60

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62

co PyRESOLUTION NO. 2013-001

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PENITAS, TEXASAPPROVING A REVITALIZATION PLAN FOR AN AREA LOCATED IN THE CITY OF

PENITAS

Whereas, the City of Penitas is experiencing rapid growth and is working diligently to plan forsuch growth through initiatives that, in part, focus on revitalizing existing neighborhoods of theCity.

Whereas, the City Council of the City of Penitas. Texas, desires to adopt a revitalization planthe "Plan") that focuses on improving the Diamond Avenue Neighborhood (the

"Neighborhood"). The Plan reflects and consolidates the City's ongoing efforts to strengthenand expand housing in the Neighborhood: and to induce redevelopment and new development ofretail and commercial activities in this targeted area of the City.

Whereas, it necessary and in the best interest of the City to designate the Neighborhood forcommunity revitalization.

NOW THEREFORE BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OFPENITAS, TEXAS:

Section 1. That the City Council hereby designates and targets for improvement an areadefined as the "Diamond Avenue Neighborhood". This is an older neighborhood, containing theEspanola Heights subdivision, and is bordered on the south by U.S. Highway 83 and the east by23rd street; with the northern and eastern boundaries formed by the canal known as IrrigationDistrict No. 6. 1

Section 2. That the City Council hereby approves and adopts the Plan for the Neighborhood.The goal of the Plan is to provide the Neighborhood with improvements and incentives it needsto grow economically, prevent further deterioration of the existing single family homes,encourage new housing activity, including affordable rental housing, increase its tax base, and bea viable and desirable place to live and work.

Section 3. That 'the City Council recognizes that one of the objectives of the Plan is toincentivize and encourage the development of quality affordable rental housing, and the Citysupports this effort. The City does not have any quality rental property to support its currentneeds and any future needs resulting from the ongoing revitalization efforts in the area.

Section 4. That the City Council hereby further recognizes that the Plan and the activities setforth in the Plan have been adopted and funded pursuant to a process that allowed for publicinput and comment, and that the funding and activities under the Plan have already commencedand the City has no reason to believe that all of the funding for the full implementation of thePlan will be unavailable.

63

Wayor Xarcos Ochoaafayor43-o-7em,Antonio 'Tony" Abres3r.

Commissioner-7 4 Tlores

I

Commissioner Tomas CedislloCommissioner,7esus.A. Avendano

Ur ffVTk CommfssionerAlex CGuajardoCity 912anagerN'oe 5f. Cavazos

City Secretary -Ana Cantu

***************************^*****************^**************************************************

January 2, 2013

Texas Grey Oaks, LLC, or its assignee9907 MoorberryHouston, Texas 77080Attn: Steve L•otlis, Manager

Re: Villages of Penitas, a proposed multifamily development

Dear Mr. Lollis,

In connection with your pre-application into the Texas Department of Housing and Community Affairs, we herebycertify that the Revitalization Plan for the Diamond Avenue Neighborhood was adopted by the City of Penitas. Theplan and the activities set forth in the Plan were adopted and funded pursuant to a required process that allowed forpublic input and comment. The funding and activities under the plan have already commenced, and the City of Penitashas no reason to believe that the overall funding for the full and timely implementation of the plan will be unavailable.

Please let us know if you have any questions or comments.

4'.O. Bo.-Y, 204 Tenitas, ^fX 78576 Thone- 956-581-3345 fFa.X^- 956-581-3346 E-mada.cantupenitas@yahoo.com

64

"I qflOn

.^.^^ .^

TEXAS COMMISSION ON ENVIRONMENTAL QUALITYP.O. Box 13087

Austin, Texas 78711-3087

PERMIT TO DISCHARGE WASTESunder provisions of

Section 402 of the Clean Water Actand Chapter 26 of the Texas Water Code

City of Penitas

whose mailing address is

P.O. Box 204Penitas, Texas 78576-0204

EXHIBIT

1YUm.J Mltivlli 1VV.

WQoo14884001[For TCEQ office use only - EPA I.D.No. TX01314911

This is a renewal that replaces TPDESPermit No. WQoo14884001 issuedOctober i7, 2008.

is authorized to treat and discharge wastes from the City of Penitas Wastewater Treatment Facility, SICCode 4952

located at 2300 Chihuahua Road, Penitas approximately 2,00o feet east of the intersection of 19thStreet and Military Road (1427) in Hidalgo County, Texas 78576

directly to the Rio Grande Below Falcon Reservoir in Segment No. 2302 of the Rio Grande Basin

only according with effluent limitations, monitoring requirements and other conditions set forth in thispermit, as well as the rules of the Texas Commission on Environmental Quality (TCEQ), the laws of theState of Texas, and other orders of the TCEQ. The issuance of this permit does not grant to thepermittee the right to use private or public property for conveyance of wastewater along the dischargeroute described. in this permit. This includes, but is not limited to, property belonging to any individual,partnership, corporation or other entity. Neither does this permit authorize any invasion of personalrights nor any violation of federal, state, or local. laws or regulations. It is the responsibility of thepermittee to acquire property rights as maybe necessary to use the discharge route.

This permit shall expire at midnight, September o1, 2oi5.

ISSUED DATE: February 1, 2013

e Commission

65

City of PenitasPlanning & Zoning i City Council Meeting

TuesdayNovember 8, 2011

6:00 P.M.

Minutes Pe-,Z/City Council Meeting

1. Call Meeting to Order and Determination of Quorum

EXHIBIT

Mayor Pro-Tem Tomas Cedillo called meeting at 6:00 p.m. Present were Patricia A. Cardenas,Jesus Avendano. Alderman Jose Gonzalez came in at 6:03p.m. Planning and ZoningCommittee: Chairman Roel Flores called meeting to order at 6:02 pm. Members present wereJerry Bell, Osiel Ramos, and Gregorio Gonzalez. Also present was City Clerk EsmeraldaMedina and City Administrator Noe Cavazos.

2. InvocationAlderman Jesus Avendano led invocation.

3. Certification of PostingCity Clerk Esmeralda Medina certified the agenda was posted 72 hours prior to the meeting.

4. Approval of MinutesMotion was made by Jerry Bell to approve minutes for Planning & Zoning Meeting held onJuly 20, 2011. Motion was second by Gregorio Gonzalez. Motion carried.

5. Citizen's Input and/or other discussionsNone

^..^.6. Discussion, consideration and appropriate action

A) L& Z. Motion was made by Gregorio Gonzalez to approve the Mil Encinos Planned UnitDevelopment. Motion was second by Osiel Ramos.City Council: Motion was made by Patricia A. Cardenas to approve the Mil EncinosPlanned Unit Development. Motion was second by Alderman Jesus Avendano. Motioncarried.

7. AdjournmentMotioa was made by Alderman Jose Gonzalez to adjourn meeting at 6:41p.m. Motion wassecond by Roel Flores. Motion carried.

ice 1-,V-Z,

tyray'ar Marcos och4a

ATTEST:

City Secretary, Ana Cantu

66

67

EXHIBIT,

RESOLUTION NO. 2013-004

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PENITAS, TEXAS

APPROVING FUNDING ASSISTANCE TO VILLAGES OF PENITAS, LI'

WHEREAS, Villages of Penitas, LP is proposing a development for affordable rental housing to

be located on approximately 10 acres out of Diamond Commercial Park Subdivision, Penitas.

Hidalgo County, Texas 78576. The name of the proposed development is Villages of Penitas

(the Development); and

WHEREAS, Villages of Penitas, LP intends to submit an application to the Texas Department of

Housing and Community Affairs (TDHCA) for 2013 Competitive Housing Tax Credits (HTC) to

construct the Development; and

WIIEREAS, pursuant to §11.9(d)(3)(B) of the Qualified Allocation Plan (QAP), the rules that

govern the allocation of the HTC by TDHCA, applicants applying for HTC who provide a firm

commitment for funds in. the form of a resolution from a Unit of General Local Government

(UGLG) may qualify for one (1) point in addition to those points awarded under §11.9(d)(3)(A)

of the QAP. The City of Penitas qualifies as a UGLG. The QAP requires that the commitment

be in the form of a resolution.

WHEREAS, Villages of Penitas, LP has applied for funding assistance from the City of Penitas;

and

WHEREAS, the City of Penitas supports the proposed development of Villages of Penitas and

Villages of Penitas, LP's request for funding assistance to support its HTC application to

TDHCA; and

NOW THEREFORE BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OFPENITAS, TEXAS:

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68

That City Council of the City of Penitas hereby adopts this resolution evidencing a commitment

of funds by the city to Villages of Penitas to the extent of the following amounts, which will be

funded or contributed by the city to the proposed development in the following ways:

(a) CDBG Disaster Funds (CDBG-DR) already committed to the city in the amount of

approximately $250,000, towards off site drainage improvement costs necessary to properly

drain Villages of Penitas to include, in part, installation of a 36" drainage pipe along Diamond

Avenue, Liberty Blvd., and US 83 and all necessary connections to the outfall drainage ditch

south of US 83; and

(b) An in-kind contribution by the city in the amount of $80,000 that will be used by the city

to acquire a tract of land to provide access to the Development Site and Diamond Avenue; and

(c) An in-kind contribution of CDBG funding in the amount of approximately $170,000

towards off site infrastructure and roadway expenses necessary to offset the cost to provide

access and utilities to the area for the benefit of the proposed development.

Further Resolved, that the funding assistance by the city to the proposed development will

comply with all requirements of the city in connection with the providing such funding

assistance and TDHCA in order to qualify for the maximum points under §11.9(d)(3) of the QAP

including the additional one (1) point for this commitment by resolution. All funding assistance

by the city as herein described is conditioned on an award of HTC by TDHCA to the proposed

development.

PASSED AND APROVED BY THE CITY COUNCIL OF THE CITY OF PENITAS, TEXASON THIS THE ^ day of February, 2013.

^ "I

h'I'Irk Ochoa, MayorCity oi Penitas

ATTEST:

aw, 0, C 'CZA^2=_Ana Cantu, City Secretary

2

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