Executed November 25, 2015

SANCTUARY AGREEMENTS

1. Billie Hanks, Jr.

2. Hanks-Cabiness Trust

3. BHHC Christian Development, LLC

4. BHHC Christian Development I, LLC

5. BHHC Christian Development II, LLC

6. BHHC Christian Development III, LLC

7. Heidi Hanks Waters

8. Heather Hanks McGready

9. Old World BBD, Inc.

10. Sanctuary Salado Investment II, LLC

LAND OWNERS

• Approximately 297 acres (276 in ETJ and 21 in Village limits)

• Master planned, mixed-use community offering a variety of housing products, commercial development, and recreational and entertainment amenities

• Details found in Master Development Agreement exhibits

PROJECT OVERVIEW

• Wastewater Treatment Permit

• Land for Wastewater Treatment Plant

• Annexation

• Influence on Land Use & Development Standards

• Application of standard Building Codes

• Additional Property for Property Taxes

• Additional Property for Sales Taxes

• Expansion of Retail Base for Tourism

• Trails (open to public use with regulations)

PROJECT BENEFITS

• Donation Agreement– with Special Warranty Deed

• Wastewater Services Agreement

• Master Development Agreement

• Chapter 380 Economic Marketing Agreement

• Tourism Marketing Agreement

* Documents are being held in Escrow until Annexation is complete and the Planned Development District Ordinance has been adopted.

*CONTRACTS

• Land donation agreement between Owners, Village, & Salado Utility Company

• Includes 6 acres for wastewater treatment plant site

DONATION AGREEMENT

• Agreement between Village and Sanctuary Development Company, LLC for the Village to provide retail wastewater services to future customers in Sanctuary

• Agreement contingent upon 1) donation of 6 acres of land for WWTP; 2) transfer of existing Water Quality Permit to Village; 3) development of the property; 4) Chapter 380 Agreement

• Developer (and its successors and assigns) shall have the right to receive upon request and for a term extending from the Effective Date until fifteen (15) years from the date of recordation of the last Subdivision Plat for the Property, treated wastewater effluent for beneficial reuse within the Property in an amount equal to the quantity of wastewater generated within the Property but not to exceed 200,000 gpd of treated wastewater effluent. No charge for wastewater effluent for reuse.

WASTEWATER SERVICES AGREEMENT

• Describes the regulations and land uses for Sanctuary

• Includes concept diagrams and development standards

• Phased development

MASTER DEVELOPMENT AGREEMENT

Commercial

LAND USE

Sanctuary Land Uses (as per Master Development Agreement)

Commercial-Entertainment

Commercial-Hotel

Commercial-Office

Commercial-Recreational Facilities and Community Hall

Commercial-Retail

Parks, Pavilions, Shelters

Residential-Multi-Family

Residential-Single Family

• Village provides economic development property tax grant to Project Owners to stimulate business and commercial activity in the Village

• Base taxes (2015 rate) = 100% to Village

• Taxes increases above 2015 base rate:– Commercial = 50%/50% for 15 years from each Certificate of Occupancy– Residential = 50%/50% for 15 years from each tract date of Plat

• Property tax grant only applies to Operation and Maintenance, not for Debt Service Tax Rate

• Rollback grants-periodic economic development grants in amount equal to 100% of Rollback Taxes to offset a portion of the Owner’s cost of development of the land

CHAPTER 380 AGREEMENT

• Agreement between Village and Owners to increase travel-related taxable sales in the Salado marketing area

• Hotel tax reimbursement program that gives back 50% of hotel occupancy tax collected in the designated marketing area for 15 years from each Certificate of Occupancy. 3 properties are planned.

• Funding may be used for: – advertising, promotional programs promoting visitor attractions, the arts,

entertainment opportunities, historical sites, recreational facilities, and points of interest to attract tourists and convention delegates to the area

• Annual Budget and Program must be approved by the Village BOA

TOURISM MARKETING AGREEMENT

• Annexation– Petitions were accepted on 12/10/2015– 2 Public hearings will be held in January– Adoption of annexation ordinance

2/11/2015

• Zoning– Planned Development District (PDD)

adopted once annexation complete– Adoption of PDD is concurrent with

annexation timeline

• Wastewater permit transfer

• Formation of Public Improvement District (PID)

NEXT STEPS

SANCTUARY AGREEMENTSPresented December 14, 2015

Town Hall Meeting

by the Village of Salado