HomeMy WebLinkAboutContract 31741 CITY SECRETARY
MEMORANDUM OF OPTION CONTRACT NO.
STATE OF TEXAS §
§ KNOW ALL MEN BY THESE PRESENTS THAT:
COUNTY OF TARRANT §
This MEMORANDUM OF OPTION is made and entered into as of the _Z7 day of
April, 2005, by and between THE CITY OF FORT WORTH, a municipal corporation organized
and existing under the laws of the State of Texas ("City"), and OMNI FORT WORTH
PARTNERSHIP, L.P., a Delaware limited partnership("Omni").
WITNESSETH
Pursuant to that certain Option Agreement (the "Option Agreement"), dated as of
April 27, 2005, by and between City and Omni, City has granted to Omni the option to lease all
or a portion of the retail space within the parking garage to be constructed upon that certain tract
or parcel of land (the "PropertX") which is described on Exhibit "A" attached hereto and
incorporated herein by reference for all purposes.
The Option expires upon the earlier of certain dates set forth in the Option Agreement.
This Memorandum of Option is executed pursuant to the provisions of the Option
Agreement, and is not intended to vary or supersede the terms and conditions of the Option
Agreement. In the event any conflict exists between this Memorandum of Option and the Option
Agreement, the provisions of the Option Agreement shall control.
The Option Agreement and the obligations of City thereunder are hereby intended to run
with the Property and will be binding upon City and each and every subsequent owner, tenant,
subtenant, licensee, manager, and occupant of all or a portion of the Property,but only during the
term of such party's ownership, tenancy, license, management or occupancy of the Property, for
which such party will remain liable and will be binding upon and inure to the benefit of Omni. It
is expressly understood and agreed that acceptance of title to all or a portion of the Property will
automatically, and without further acknowledgement or conformation from the owner constitute
such owner's assumption of the obligations of City under the Option Agreement.
[The remainder of this page has been intentionally left blank.]
Memorandum of Option—Page l
CITY:
Approved as to form: CITY OF FOR W
By: 71
City Attorney 61C-2 0 6/7 3-2 9-05 City+aV 0
ATTEST:
ch�&
City Secretary
STATE OF TEXAS §
COUNTY OF TARRANT §
I, S A ap'L, a Notary Public for the County and State aforesaid, certify
that Joe Paniagua personally came before me this day and acknowledged that he is the Assistant
City Manager of the CITY OF FORT WORTH, a municipal corporation organized and existing
under the laws of the State of Texas, and that he, as such Assistant City Manager, being
authorized to do so, executed the foregoing instrument on behalf of said municipal corporation.
WITNESS my hand and official stamp or seal, this I day of April, 2005.
----------- mfti
(SEA =+E�'r"y"`` ': BETTY J.TANNER
MY COMMISSION EXPIRES
March 31,M Lary Pub c, to of Texas
My C
Memorandum of Option—Page 2
OMNI:
OMNI FORT WORTH PARTNERSHIP, L.P.,
a Delaware limited partnership
By: Omni Fort Worth GP Corporation,
a Delaware corporation,
its general partner
By:
Nam Scott Johnson
Title: Vice President
STATE OF TEXAS §
COUNTY OF TARRANT §
I, , a Notary Public for the County and State aforesaid, certify
that Scott JohnsAn personally came before me this day and acknowledged that he is the Vice
President of Omni Forth Worth GP Corporation, a Delaware corporation, the general partner of
OMNI FORT WORTH PARTNERSHIP, L.P., a Delaware limited partnership, and as such Vice
President, being authorized to do so, executed the foregoing instrument on behalf of said
corporation and limited partnership.
SWI ial stamp or seal this Itlay of April, 2005.
BETTY J.TANNER
N '= Wy coMMISSION EXPIRES
(SEAMarch 31,zoos
Notary Publi , Sta of Texas
My Commission Expires:
Memorandum of Option—Page 3
Exhibit "A"
to
Memorandum of Option
LEGAL DESCRIPTION
A portion of:
Section 7, TARRANT COUNTY CONVENTION CENTER, an addition to the
City of Fort Worth, Tarrant County, Texas, according to plat thereof recorded in
Volume 388-59, Page 14, Plat Records of Tarrant County, Texas.
EXHIBIT"A",Legal Description—Page 1
Dallas_1\4138741\1
42379-1 4/11/2005
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/29/2005
CONTINUED FROM A PREVIOUS WEEK
DATE: Thursday, March 24, 2005
LOG NAME: 170MNI RETAIL REFERENCE NO.: C-20617
SUBJECT:
Authorize Execution of Option Agreement to Enter into Retail Lease Agreement with Omni Fort
Worth Partnership, L.P. for Portions of City Parking Garage Constructed on Block 7, Tarrant County
Convention Center Addition
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute the attached Option
Agreement to enter into Retail Lease Agreement with Omni Fort Worth Partnership, L.P. for ground level
retail and commercial space within a City-owned parking garage to be constructed on Block 7, Tarrant
County Convention Center Addition.
DISCUSSION:
The City intends to construct a parking garage on a portion of Block 7, Tarrant County Convention Center
Addition. This property is located directly to the west of the Fort Worth Convention Center, south of the
SBC building located on Houston Street and will be north of the Omni Fort Worth Hotel. Approximately
10,000 to 15,000 square feet of retail, restaurant or commercial space (the Retail Space) will be constructed
on the ground level of the garage, subject to final architectural and design specifications approved by the
City Council.
In order to ensure that the Retail Space complements the needs of the hotel and the Fort Worth Convention
Center, the City proposes to grant Omni Fort Worth Partnership, L.P. (Omni) an option to lease all or any
portion of the Retail Space at fair market rent established annually by an appraiser in accordance the City's
standard appraisal procedures with periodic adjustments based on the Consumer Price Index
changes. The term of each such lease will be 10 years, with five (5) consecutive options to renew the lease
for subsequent terms of 10 years each.
The Retail Space will be delivered to Omni in a shell condition, with no construction allowance payable to
Omni. Omni will then sub-lease portions of the Retail Space to various tenants in accordance with a sub-
lease and finish-out acceptable to the City.
The Fort Worth City Parking Garage will be located in Council District 9.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no direct and immediate impact on City funds.
Loename: 170MNi RETAIL PA QP. 1 of
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office bv: Dale Fisseler (6140)
Joe Paniagua (6191)
Originating Department Head: Tom Higgins (7692)
Additional Information Contact: Peter Vaky (7601)
T.nonsme° 170MNT RFTATT