Consideration of and action on authorization of a Facility Development Agreement by and between the City of Sugar Land, Texas and the University of Houston System, for construction of a shade structure at the Pumptrack for The Crown Festival Park.

On December 6, 2005, the Sugar Land 4B Corporation (SL4B) entered into a Ground Lease Agreement with the University of Houston System (UHSL) to lease a total of 52-acres of land owned by UHSL, on what is now known as The Crown Festival Park at Sugar Land. On September 19, 2012, the SL4B’s responsibilities, rights, and obligations under the Ground Lease were assigned to the City of Sugar Land (City) by Assignment of Ground Lease. The Ground Lease is for fifty years, with an option to extend the lease for five, ten-year terms.

Per the Ground Lease, a Facility Development Agreement must be entered into by the City and UHSL before construction of any facility on the festival site property and must contain, at a minimum, terms, and conditions that address the following issues:

• Architectural Approval and Development Standards;
• Cost Sharing;
• Lessor’s (UHSL) Use of Facility; and
• Construction Standards.

In early 2021, staff began conversations with UHSL about entering into a Facility Development Agreement for the creation of a Pumptrack and shade structure to meet the increasing demands of the biking community in Sugar Land, promote the health and outdoor lifestyle of Sugar Land residents, provide an additional amenity for UHSL students, attract regional visitors, and contribute to the vibrant local business economy. The Pumptrack Facility Development Agreement was finalized in April 2022, with the Pumptrack opening in March 2023. The City is now seeking to complete the shade structure which will further enhance the comfortability for the visitors using the Pumptrack.   

The Facility Development Agreement for the Pumptrack Shade Structure outlines the approval from UHSL based on the conceptual plan and the proposed location, agreeing that the City is responsible for all project costs for the shade structure and all costs specified under the Ground Lease.

Highlights from the Facility Development Agreement for the shade structure are as follows:

• UHSL must be notified before and following the completion of construction with signed, dated, and written certifications from the City and the City’s construction contractor.
• The expected life cycle of the shade structure is 20-25 years. The City is responsible for returning the property to its original state.
• All signage must be approved by UHSL via written approval.
• Any development agreements must require the engineering contractor, construction contractor, and any other contract or subcontractor to indemnify, defend and hold UHSL harmless.
• During the life of the shade structure, the City will maintain similar insurance that the City requires for other recreational facilities similar to this facility.
• The City shall manage, operate, maintain, repair, install, equip, and replace any aspect of the shade structure, the site, and or surrounding area, including the parking lot, in accordance with the Development Standards.
• The City shall conduct the operations of the shade structure so that it does not cause a nuisance or interfere with the higher educational purposes of UHSL.
• The City shall be responsible for the safety and security of the site, the shade structure, and the surrounding area.
• The UHSL name, logo, informal seal, or other symbols shall not be used without written consent from UHSL Chancellor or designee.
• The City has the right to rent or authorize the use of the shade structure for temporary events. If the City enters into a contract with a for-profit entity for the operation of the site and the City receives rent, the City shall share such fees with UHSL in accordance with the rent sharing stipulation found in the Ground Lease.

Staff recommends consideration of and action on approval of the Facility Development Agreement, as required by the Ground Lease Agreement between City of Sugar Land and the University of Houston System, for construction (design-build) of the shade structure at the Crown Festival Park at Sugar Land.