M E M O R A NDU M O F UND E RST A NDIN G B E T W E E N T H E. The T E X AS G E N E R A L L A ND O F F I C E G A L V EST O N C O UN T Y

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1 M E M O R A NDU M O F UND E RST A NDIN G B E T W E E N T H E T E X AS G E N E R A L L A ND O F F I C E A ND G A L V EST O N C O UN T Y G L O C O N T R A C T N O The T E X AS G E N E R A L L A ND O F F I C E G A L V EST O N C O UN T Y hereby enter into this Memorandum of Understanding Rollover Pass and the construction and maintenance of a public park and recreational facilities in Galveston County, Texas. W H E R E AS, Section of the Texas Natural Resources Code authorizes the Commissioner of the modification of a man-made pass between the Gulf of Mexico and an inland bay if certain conditions are met; and W H E R E AS, the Commissioner has determined that Rollover Pass in Galveston County, Texas, causes or contributes to significant erosion of the shoreline of the adjacent beach; and W H E R E AS, Rollover Pass is not a public navigational channel constructed or maintained by the federal government; and W H E R E AS, the GLO has received legislative appropriations for the purpose of closing Rollover Pass; and W H E R E AS, the Commissioner has developed, in consultation with the Parks and Wildlife Department and the County, a recreational amenities plan to mitigate the loss of public recreational opportunities resulting from the closure of Rollover Pass, which has been presented to the public and approved by the Commissioner; and W H E R E AS, the recreational amenities plan will include a new fishing pier extending into the Gulf of Mexico and landside public park facilities between the Gulf and SH 87 (collectively, W H E R E AS, the GLO and the County have also developed a public park plan, which will include new parkland and improvements between Rollover Bay and SH 87 (collectively, the W H E R E AS, the closure of Rollover Pass and construction and maintenance of the public park and recreational facilities will provide significant public benefits, including restoring the Rollover Pass area to historic natural conditions, preventing shoreline erosion and sedimentation of the Gulf Intracoastal Waterway, creating new recreational opportunities, parkland, and public facilities, and undoing adverse salinity impacts to the East Bay; and Page 1 of 4

2 W H E R E AS, the closure of Rollover Pass and the construction and maintenance of the public park and recreational facilities will serve a public use authorized by law; and W H E R E AS, acquiring ownership in fee simple of the land underlying and adjacent to Rollover Pass is necessary to effectuate its closure and to construct the public park and and W H E R E AS, the County has the statutory authority, including authority under the Texas Local Government Code, the Texas Government Code, and the Texas Property Code, to acquire the property necessary for the closure of Rollover Pass and the construction of the public park and recreational facilities; and W H E R E AS, the GLO and the County wish to enter into this MOU to memorialize their respective responsibilities regarding the closure of Rollover Pass, land acquisition, and the construction and maintenance of the public park and recreational facilities; N O W, T H E R E F O R E 1. L A ND A C Q UISI T I O N The County shall act in accordance with its authority to acquire fee simple ownership of all land necessary for the closure of Rollover Pass and for the construction of the Bayside Park and the Gulfside Recreational facilities. The GLO shall be solely responsible for the costs necessary to acquire the land, including any legal fees incurred by the County in acquiring the land; provided, however, that such costs shall not exceed the total amount set forth in the Project Cooperation Agreement (GLO Contract No ) between the Parties for Coastal Erosion Planning and Response Act (CEPRA) Project No Title to the land acquired by the County will vest in the County, subject to the public use and purpose for which the land is acquired. Notwithstanding this section, in no event will the County be responsible for any portion of the land acquisition costs. 2. G U L FSID E R E C R E A T I O N A L F A C I L I T I ES The GLO shall be solely responsible for the costs and work necessary to construct the Gulfside Recreational Facilities and shall commence construction as soon as practicable after the closure of Rollover Pass is completed. The GLO will own the fishing pier and associated structures and facilities. Prior to the beginning of operations, the Parties intend to enter into a long-term lease agreement granting the County the authority to operate and maintain the Gulfside Recreational Facilities, including the fishing pier owned by the GLO. A proposed non-binding summary of the key lease terms is attached hereto as Exhibit A. Subject to the negotiation, approval, and execution of a binding lease agreement between the Parties, the County shall be responsible for the operation and maintenance of the Gulfside Recreational Facilities in accordance with the terms and conditions set forth therein. performance under this section is conditioned on the completion of a binding lease Page 2 of 4

3 agreement as described. The Gulfside Recreational Facilities are described on the renderings attached hereto as Exhibit B. 3. B A YSID E PA R K The GLO shall be responsible for the costs of the park improvements, engineering and design, grant administration, permitting, and construction oversight necessary to build the Bayside Park described on the renderings in Exhibit B; provided, however, that if such costs exceed the total amount set forth in the Community Development Block Grant Disaster Recovery program (CDBG-DR) Round 2.3 Grant Agreement (GLO Contract No ) for the Bayside Park, the GLO may terminate this MOU. The County shall be responsible for all costs and work other than design and construction costs associated with building the Bayside Park, including any procurement and contracting for construction services. The County, which will own the parkland and all improvements, shall be solely responsible for operating and maintaining the Bayside Park. Notwithstanding this section, in no event will the County be responsible for any portion of the park construction costs. 4. PUB L I C I N F O R M A T I O N To the extent allowed by law, all press and other public inquiries made regarding activities related to the closure of Rollover Pass shall be coordinated between the GLO and the County and handled in accordance with the Public Information Act, Chapter 552 of the Texas Government Code. 5. N O D E B T This MOU shall not be construed as creating any debt on behalf of the State of Texas and/or the GLO in violation of Texas Constitution, Article III, Section 49. It is expressly acknowledged that all obligations of the GLO hereunder are subject to the availability of funds and that this MOU may be terminated if such funds become unavailable. 6. SO V E R E I G N I M M UNI T Y Nothing in this MOU shall be construed as a waiver of sovereign immunity by the GLO, the State of Texas, or the County. 7. PR OPE R A U T H O RI T Y This MOU is entered into pursuant to the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code. Each Party hereto represents and warrants that the person executing this MOU on its behalf has full power and authority to bind the respective entities to the terms and conditions of this MOU. 8. C O UN T E RPA R TS This MOU may be executed in any number of counterparts, each of which shall be an original, and all such counterparts shall together constitute but one and the same MOU. Page 3 of 4

4 9. E F F E C T I V E D A T E This MOU is effective on the date last signed, and shall terminate on the second specifying a termination date at least thirty (30) days subsequent to the date of such notification, or extended by mutual written agreement. 10. A M E ND M E N TS Any material revision of the terms and conditions of this MOU shall be by written agreement of the Parties. SI G N A T UR E PA G E F O L L O WS Page 4 of 4

5 SI G N A T UR E PA G E F O R M O U B E T W E E N T H E T E X AS G E N E R A L L A ND O F F I C E A ND G A L V EST O N C O UN T Y G L O C O N T R A C T N O T E X AS G E N E R A L L A ND O F F I C E G A L V EST O N C O UN T Y Anne L. Idsal, Chief Clerk/ Deputy Land Commissioner Date of execution: Mark A. Henry County Judge Date of execution: O G C Attest: D EPDIR SRD EPDIR SRD EPDIR D EPG C G C

6 Exhibit A PROPOSED NON-BINDING SUMMARY OF LEASE TERMS GULFSIDE RECREATIONAL FACILITIES GALVESTON COUNTY, TEXAS Proposed Document: Leased Premises: Purpose: Term: Consideration: Operation & Maintenance: User Fees: Insurance: Extraordinary Damage: Long-term lease agreement between the State of Texas and Galveston County. State-owned fishing pier extending into the Gulf of Mexico, and ancillary structures and facilities located on Bolivar Peninsula, Galveston County, Texas. A full legal description will be provided in the lease agreement, including any State-owned submerged land included in the leased Premises. Operation and maintenance of the Premises, including the fishing pier, pavilion building (including the visitor center, restrooms, and bait shop), parking lot, dune crossing, and concession areas. Initial term of 30 years, commencing upon operations, with the option to renew for a term of 20 years. Ten dollars and other good and valuable consideration. The County will keep and maintain the Premises in good condition and repair. As set forth in the final operations and maintenance plan, the County responsibilities will include daily operation of the fishing pier and other facilities on the Premises, short-term and long-term maintenance and repair activities, and management, staffing, and security. During the term of the lease, all user fees, concession fees, or other revenues derived by the County from the fishing pier and other facilities on the Premises will be dedicated and used exclusively to costs and expenses to operate, maintain, repair, staff, and manage the Gulfside Recreational Facilities and/or the Bayside Park. The County will require any private-party vendor to maintain appropriate liability insurance coverage for the Premises. The County will also maintain windstorm insurance coverage for the pavilion building and the structures on the fishing pier. In the event that a hurricane or storm damages or destroys over 50% of the fishing pier or another facility on the Premises, the Texas General Land Office will seek funding for the repair/replacement of such facilities, including applying to receive public assistance funds from the Federal Emergency Management Authority (FEMA) if there is damage to eligible facilities caused by an emergency or disaster. This Summary is not a contract. It is merely a non- intent to negotiate the terms of a contract, which, if fully integrated in writing and properly approved and signed on behalf of both parties, would constitute a contract.

7 Conceptual Design Exhibit B