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INSTALLATION OF A NATURAL GAS DISTRIBUTION SYSTEM I ~ ~ of AGREEMENT made and entered into effective this ~ay 1997, by and between the CITY OF CLEARWATER, a Fl municipal corporation, hereinafter referred to as "Company", and THE GRAND RESERVE AT PARK PLACE, LTD., a Delaware limited partnership, hereinafter referred to as "Developer". WIT N E SSE T H WHEREAS, Developer expects to build an apartment complex to be named The Grand Reserve at Park Place consisting of approximately 390 apartments to be built on Lots 2 and 3, Storz Ophthalmics, Inc. , Plat Book 109, Page 10, Pinellas County, Florida (hereinafter, the "Project"); and WHEREAS, Developer desires to arrange for the installation of a natural gas distribution system within the Project, and Company has agreed to install such system pursuant to the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Company and Developer hereby agree as follows: (1) Company agrees at its sole cost and expense to install a gas distribution system, including, without limitation, all necessary distribution lines, meters and ancillary distribution system facilities ( collectively, the "Gas Distribution System") terminating at the meter outlet spud, necessary to provide natural gas service to all apartments and amenities ln the Project as built. Company agrees that gas service will be available to each ee;~ /iI;r; __ /) ./../ i/ .1 U l/ c/... I":' . -j (;") I I housing unit at the earlier of: (i) twelve [12] months from the date hereof; or (ii) as and when each particular housing unit is completed and ready for occupancy, subj ect to delays caused by Developer or as a result of conditions described in Paragraph 10 of this Agreement. The Gas Distribution System shall remain the property of the Company at all times and Company shall have the sole responsibility at its sole cost and expense for the maintenance of such system. Service will be provided by the Company for as long as the Project is being operated by Developer, any successors or assigns. (2) In recognition of the investment made by Company in constructing the Gas Distribution System, Developer hereby agrees: (i) to install an energy efficient gas water heater (minimum size of thirty [30] gallon) and an energy efficient gas heating system ln each apartment unit; and (ii) to provide the necessary piping to permit installation of an energy efficient pilotless gas range in each apartment in the Project; and (iii) to install ventless gas fire places in selected apartment units. In addition, Developer agrees that each model apartment in the Project will be equipped with an energy efficient pilotless gas range. (3) Developer agrees that the costs of all gas consumed within the model apartment units only shall be the responsibility of Developer. All gas consumed by such appliances shall be billed by Company pursuant to Company's applicable rate schedule and paid for by Developer. Each apartment unit and the Project amenities (e.g., pool, clubhouse, BBQ grills, etc.) will be separately 2 I I metered and billed to the account's named customer. The gas meters shall be installed at grade level at locations selected by Developer and agreeable to Company conforming to applicable codes. (4) Company agrees to pay to Developer, upon initiation of gas service to an apartment unit, a "Builder Allowance 'I for each apartment unit based on the following schedule: APPLIANCE INSTALLED ALLOWANCE Energy Efficient Gas Water Heater $375.00 Energy Efficient Gas Heating System 125.00 Energy Efficient Gas Range 50.00 Maximum Allowance per Apartment Unit $550.00 Unless Developer notifies Company to make payment of the foregoing allowances to a person or persons other than Developer, all such allowances shall be paid by Company to Developer. (5) Developer agrees to clear grade to final elevation and designate all non-exclusive easements and/or rights-of-way, where portions of the Gas Distribution System are to be installed, and to provide plats of the Project to Company or, in the alternative, at Developer's discretion, provide a blanket easement, provided in the latter instance, the Developer may relocate utility lines at its expense. In either event, the use of said easement will not in any way interfere with Developer's use of the Project as a residential apartment complex. To the extent the Developer elects to grant a specific easement, the Developer will pay for all survey costs associated with the same. 3 I I (6) In the event Developer conveys any or all of the land upon which the Project is to be developed to other builders or developers, this Agreement shall be binding upon such successors or assigns. If such other builder (s) or developer (s) agree (s) to comply with the terms of this Agreement, as to the portion of the Project conveyed, Company shall look solely to such other builder (s) or developer (s) for the performance of all of the obligations imposed upon Developer under this Agreement, but otherwise Developer shall remain liable to Company under this Agreement for such portion of the Project. (7) Developer, at its sole cost and expense, shall install all interior gas piping, venting, etc. of any buildings or other facilities constructed with the intent that natural gas be used therein will conform to applicable codes and will be so sized as to satisfy existing requirements for the ultimate utilization of natural gas. (8) Nothing contained herein shall be construed as a joint venture, partnership or any other similar relationship between Company and Developer. (9) Neither Company nor Developer shall be liable to the other for any failure to perform pursuant to the terms and conditions of this Agreement to the extent such performance was ultimately prevented by an event of Force Majeure. The term "Force Majeure" shall mean acts of God, strikes, lockouts, or other industrial disturbances, acts of the public enemy, wars, blockades, insurrection, riots, epidemics, landslides, sinkholes, lightning, 4 I I industrial disturbances that affect all of Company's customers, earthquakes, fires, storms, flood, washouts, arrests and explosions, breakage or non--foreseeable accident to machinery or lines of pipe, and any other causes, whether of the kind herein enumerated or otherwise, not within the control of the party whose performance is affected and which, in each of the above cases, by the exercise of due diligence such party is unable to prevent or overcome; such term shall likewise include the ability of a party to acquire, or delays on the part of such party in acquiring at reasonable cost and by the exercise of reasonable diligence, servitudes, rights-of-way, grants, permits, permissions, licenses, materials or supplies which are required to enable such party to fulfill its obligations hereunder. The party whose performance is excused by an event of Force Majeure shall promptly notify the other party of such occurrence and its estimated duration, shall promptly remedy such Force Majeure if and to the extent reasonably possible and shall resume such performance as soon as possible; provided, however, that neither party shall be required to settle any labor dispute against its will. (10) This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto, and their respective successors and assigns, and no assignment shall relieve either party of such party's obligations hereunder without written consent of the other party. (11) This Agreement shall be subject to all applicable laws, rules, orders, permits and regulations of any federal, state or 5 I I local governmental authority having jurisdiction over the parties, their facilities, or the transactions contemplated. (12) This Agreement shall be interpreted and construed in accordance with the laws of the State of Florida. This Agreement is subordinate and inferior to any mortgage now or hereafter placed on the Project by the Developer or its successor in title. This Agreement is self-subordinating without the need for any further documentation; provided, however, upon request the Company will execute an appropriate subordination agreement. (13) In the event of litigation between the parties hereto arising out of or in connection with this Agreement, then the reasonable attorneys' fees and costs of the party prevailing in such litigation shall be paid by the other party. (14) Any and all notices, excluding billing, shall be sent by either party to the other pursuant to this Agreement shall be sent by either certified or registered mail, postage prepaid, return receipt requested, or by receipted overnight national delivery service (e.g., Federal Express) and shall, if not sooner received, be deemed received three (3) business days after deposit in the United States Mail, postage pre-paid, or one business day after receipt by any national delivery service, as aforesaid. All notices shall be addressed to each party at the following address, or such other address as either party may hereafter designate to the other party in writing: 6 I I If to Developer: The Grand Reserve at Park Place, Ltd. 1101 N. Lake Destiny Drive, #400 Maitland, Florida 32751 Attention: Christopher DelGuidice If to Company: City of Clearwater c/o Clearwater Gas System 2551 Drew Street, Suite 104 Clearwater, Florida 34625 Attention: Louis A. Forquhar with a COpy to: City of Clearwater City Attorneys Office P.O. Box 4748 Clearwater, Florida 33758-4748 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed by their respective duly authorized officers as of the date first above written. COMPANY: CITY OF CLEARWATER By: Name: Title: tY~e/# ~e~~h- City Manaqer Attest: By: Name: Title: Approved as to form and legal sufficiency. BY:~~ Name: John Carassas Title: Assistant City Attorney (signatures continue on next page) 7 . . ~ I Wltn~.&~~ ~ 5u'",LJ :)tlAuJ 8AU>{1JtAJ J.-t> I.S-I . Name: b .( .1\6"ftttJxA-- G:\DELGUIDI\PARKPLAC\CLEARWAT.AGR I DEVELOPER: THE GRAND RESERVE AT PARK PLACE, LTD. :::~n~~h Name: ~~I S,n(/~ tJ€LtJu/I l(~ Title: ?~~/~~r 8