HomeMy WebLinkAboutContract 35603-A2 CITY SECRETARY
CONTRACT NO. L o - a
AMENDMENT NO. 2 TO
ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
(CITY SECRETARY CONTRACT NO. 35603)
This AMENDMENT NO. 2 TO ASSIGNMENT OF CITY SECRETARY
CONTRACT NO. 35603 ("Amendment") is made and entered into by and between the CITY
OF FORT WORTH ("City"), a home rule municipal corporation organized under the laws of
the State of Texas, and LANCASTER AVENUE, LTD. ("Developer"), a Texas limited
partnership acting by and through J. Waymon Levell, President of LT Real Estate Corporation, a
Texas corporation and Developer's sole general partner.
The City and Developer hereby agree that the following statements are true and correct
and constitute the basis upon which the City and Developer have entered into this Amendment:
A. Developer is the owner of certain real property in the City generally known as the
Oakland Shopping Center, located at 4217, 4233 and 4235 East Lancaster Avenue (the "Land"),
as more specifically described in Exhibit "A" of that certain Economic Development Program
Agreement between the City and Developer dated on or about August 3, 2007, a public
document on file in the City Secretary's Office as City Secretary Contract No. 35603 (the
"Agreement"). Improvements on the Land currently consist of an approximately 42,000 square
foot deteriorating commercial and retail shopping center (4217 and 4235 East Lancaster
Avenue), and an approximately 28,000 square foot vacant building site that was formerly a
Grandy's restaurant (4233 East Lancaster Avenue). The Land also includes a formerly 2,500
square foot building that has been demolished and cleared and a site adjacent to the commercial
and retail shopping center that was a former auto shop, all as more specifically depicted in
Exhibit "11-1", attached hereto and hereby made a part of this Amendment and the Agreement,
as amended, for all purposes. With the City's encouragement, Developer has proposed to
redevelop and upgrade the Land and all improvements on the Land, as more specifically set forth
in the Agreement (the "Required Improvements").
B. On November 8, 2006 the City nominated this project to the U.S. Department of
Housing and Urban Development ("HUD") for an Economic Development Initiative grant. On
or about December 28, 2006 HUD notified the City that this project had been selected to receive
$198,000 in grant funds pursuant to that certain Economic Development Initiative Grant No. 13-
06-SP-TX-1003 (the "EDI Grant Funds").
C. Under the Agreement, Developer agreed, among other things, to make the
Required Improvements in return for the City's payment to Developer of certain Program Grants
as authorized by Chapter 380 of the Texas Local Government Code and outlined in the
Agreement. The maximum amount of the Program Grants payable under the Agreement is based
on and equal to the amount of the EDI Grant Funds.
Page 1 of 3
Amendment No. 2 to CSC No. 35603 OFFICIAL RECORD
Economic Development Program Agreement with Lancaster Avenue, Ltd.
CITY SECRETARY
FT. WORTH, TX
D. The Agreement, as subsequently amended by that certain Amendment No. 1 to
Economic Development Program Agreement dated on or about December 29, 2008, a public
document on file in the City Secretary's Office as City Secretary Contract No. 35603-A1,
requires that the Completion Date (as defined in the Agreement) for the Required Improvements
must occur by December 31, 2009.
E. Developer has requested that the Completion Deadline be extended due to
unforeseen delays in constructing the Required Improvements. Due to the economic and other
public benefits that will accrue from completion of the Required Improvements, the City is
willing to amend the Agreement to accommodate Developer's request, provided that Developer
adheres to certain additional development requirements for the Land, as specified in this
Amendment.
NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the City and Developer agree as follows:
1. Section 2 of the Agreement (Definitions) is hereby amended as follows to change the
definitions of the following terms:
Completion Deadline means April 1, 2010, as extended because of Force
Majeure, in which case the April 1, 2010 date shall be extended by the number of
days comprising the specific Force Majeure, but in no event shall aggregate
events of Force Majeure cause the Completion Deadline to be extended past
December 20, 2011, which is the date as of which the EDI Grant Funds must be
expended in accordance with the Grant Agreement.
EDI Grant Improvements means the following improvements (all of
which constitute a portion of the Required Improvements): (i) reconstruction
(including roof replacement) of approximately 9,000 square feet of the east end of
the building at 4217 E. Lancaster, as depicted in Exhibits "B" and "B-1", for use
as retail space, or, at Developer's option, demolition of approximately 9,000
square feet of the east end of the building at 4217 E. Lancaster and construction of
a surface parking lot on such site; (ii) finish-out of the interior of approximately
5,000 square feet of that portion of the commercial and retail shopping center on
the Land situated between the spaces leased by Dollar Tree and CitiTrends for use
as retail space; (iii) construction of an approximately 5,000 square foot building
on the Out-Parcel Site, which building must have a final certificate of occupancy
in place by the Completion Deadline; (iv) demolition of approximately 2,500
square feet of the building located on the southeast corner of the Land for use as
parking or retail space; and (v) construction of a shell building on the site of the
former auto shop, as depicted in Exhibit"B-1", whose fagade is flush or even with
the fagade of the commercial and retail shopping center, substantially in
accordance with the elevation depicted in Exhibit "B-2", attached hereto and
hereby made a part of this Agreement for all purposes, the securing of all City
Page 2 of 3
Amendment No. 2 to CSC No. 35603
Economic Development Program Agreement with Lancaster Avenue, Ltd.
inspection permits that are required for such site and building, and the recording
of a new plat for such site that is acceptable to the City.
2. All terms in this Amendment that are capitalized but not defined shall have the meanings
assigned to them in the Agreement, as previously amended.
3. All terms and conditions of the Agreement, as previously amended, that are not expressly
amended pursuant to this Amendment shall remain in full force and effect.
EXECUTED in multiples as of the last date indicated below, but to be effective as of
December 15, 2009:
CITY OF FORT WORTH: LANCASTER AVENUE,LTD:
By:LT Real Estate Corporation, a Texas
corporation and its sole general partner:
By. By. 0—A�
Tom HigginsWaymo evell
Assistant City Manager /Presiden
Date: d Date: '� _-2/rte—
ATTEST: ATTEST: 1
00
By:
Marty Hendrix ��o 0,4
City Secretary V160 g�
o °
°°o 00°° a
APPROVED AS TO FORM AND GSoa
4
By:
Peter Vaky
Assistant City Attorney
M&C: C-23999 12-15-09
Page 3 of 3 OFFICIAL RECORD
Amendment No. 2 to CSC No. 35603
Economic Development Program Agreement with Lancaster Avenue, Ltd. CITY SECRETARY
FT. WORTH, TX
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/15/2009
DATE: Tuesday, December 15, 2009 REFERENCE NO.: C-23999
LOG NAME: 170AKLAND CORNERS EDI TA AMENDMENTS
SUBJECT:
Authorize Amendment No. 2 to City Secretary Contract Nos. 34468 and 35603,Tax Abatement and
Economic Development Program Agreements with Lancaster Avenue, Ltd., to Extend Deadlines Relating to
Redevelopment on the Northeast Corner of the 4200 Block of East Lancaster and Oakland Boulevard in the
Oakland Corners Urban Village
RECOMMENDATION:
It is recommended that the City Council authorize the City
Manager to execute Amendment No. 2 to City Secretary Contract
Nos. 34468 (Tax Abatement Agreement) and 35603 (Economic
Development Program Agreement) with Lancaster Avenue, Ltd., in
order to extend deadlines relating to the redevelopment and scope
of work schedule of individual buildings located at the northeast
corner of the 4200 Block of East Lancaster and Oakland Boulevard
in the Oakland Corners Urban Village.
DISCUSSION:
On August 29, 2006,the City Council authorized the execution of
City Secretary Contract No. 34468, a 10 year Tax Abatement
Agreement with Lancaster Avenue, Ltd., (Developer) for the
redevelopment of a 42,000 square foot shopping center located at
northeast corner of the 4200 block of East Lancaster Avenue and
Oakland Boulevard (the Project). On July 17, 2007,the City
Council authorized execution of City Secretary Contract No.
35603, an Economic Development Program Agreement with the
Developer for use of United States Department of Housing and
Urban Development(HUD)Economic Development Initiative
(EDI) grant funds of$198,000.00 for the Project. Both Agreements
provide that the Developer will invest at minimum, $1.5 million
into the renovation project of the 42,000 square foot Oakland
Shopping Center and cause new construction on the former
Grandy's out—parcel pad site of an approximately 3,500 square foot
building for commercial and/or retail located in the Project Area,
being the 4200 block of East Lancaster Avenue in the northeast
corner of the intersection of Lancaster Avenue and Oakland
Boulevard.
On December 16, 2008, because of unforeseen delays in obtaining
the Grandy' s outparcel and the downturn in economic market
conditions,the City Council authorized execution of City Secretary
Contract Nos. 34468—A 1 and 35603—A 1, which amended both
Agreements by extending the deadlines for completion of the
Project to December 31, 2009. Additionally, the scope of work was
expanded to include the possible demolition of a roughly 2,500
square foot dilapidated building located at the southeastern corner
of the project area.
To date, the Developer has invested more than $2.6 million and has
met approximately 22 percent of the tax abatement's
Minority/Women Business Enterprise (M/WBE)commitment and
is on track to fulfill the 25 percent commitment.
Due to the continued downturn of economic conditions and the
need to replat the former auto shop parcel located at the
northeastern corner of the shopping center which is currently in
process. The Developer does not expect to be able to complete the
Project by December 31, 2009, and has requested that both the Tax
Abatement Agreement and Economic Development Program
Agreement be amended to extend the Project completion deadline
to April 1, 2010.
Since the Developer has invested approximately $2.6 million, 1.7
times the minimum, in required improvements and has completed
85 percent of the Project, staff is agreeable to this request, provided
that the Developer complies with the following:
1. On the former auto shop site cause the construction of a shell
building whose fagade is flush or even to the shopping center(see
attached elevation);
2. Record a new plat for the auto shop site; and
3. Utilize and maintain project types/uses described in the Oakland
Corners Neighborhood Empowerment Zone Strategic Plan(see
attachment) for the Project area and the former Grandy's parcel.
If the first and second contingencies described above are not
completed by April 1, 2010, and/or if the Neighborhood
Empowerment Zone Strategic Plan is not adhered to by the
Developer or its subsequent tenant/lessee, the Developer will be in
default and the City will have the right to terminate both
Agreements.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION:
The Financial Management Services Director certifies that this
action will have no material effect on City funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: Thomas Higgins (6140)
Originating Department Head: Jay Chapa (7540)
Additional Information Contact: Dolores Garza (2639)
Cynthia Garcia (8187)
ATTACHMENTS
1. 17Oakland Corners NEZ Strategic Plan 1-6-09.12df
2. Oakland Corners MU-1 zoning,pDt
3. South Elevation.doc