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HomeMy WebLinkAboutContract 26702ciTY ����Er�tr ; f,r,- CONTRACT Np , O (� ESCROW/PLEDGE AGREEMENT THIS ESCR(�W/PLEDGE AGREEMENT (the "Agreement"), entered into as of �, _ a_�, 2001, by and among FJM PROPERTIES, LLC ("Developer"), the 'ity of Fdrt Worth, Texas, a municipal corporation of Tarrant County, Texas ("Fort Worth") and TODD W. TEW (Escrow Agent) is to witness the following: WHEREAS, Developer and Fort Worth have entered into a Community Facilities Agreement for Blocks 176 & 177 Summerfields Addition, an addition to the City of Fort Worth, Tarrant County, Texas (the "CFA"); and WHEREAS, the CFA provides that the Developer shall submit to Fort Worth performance and payment bonds, cash deposits or other security acceptable to Fort Worth (collectively, the "Intended Security") for the purpose of guaranteeing satisfactory compliance by Developer with all requirements, terms, and conditions of the CFA (collectively, the "Secured Obligations"); and WHEREAS, Developer and Fort Worth desire and agree that Developer be allowed to escrow and pledge cash deposits to Fort Worth, to be held by TODD W. TEW as Escrow Agent, in lieu of and in complete satisfaction of the obligation to submit the Intended Security to secure the performance of the Secured Obligations; NOW THEREFORE, for and in consideration of ($10.00) and other good and valuable consideration, the adequacy of which are hereby acknowledged and confessed, agree as follows: SECTION 1. DEFINED TERMS. the premises, ten dollars receipt, sufficiency, and the parties hereto hereby For the purposes of this Agreement, unless the context otherwise clearly requires, the following terms shall have the following meanings: "Initial Security Funds" shall mean the cash deposit of $ 465,185, which sum represents 125 percent of the estimated Developer's share of the cost of constructing the improvements identified in the CFA. The Developer's share of the total cost of such improvements shall hereinafter be called the "Estimated Developer's Cost". "Lien" shall mean any lien, security interest, charge, tax lien, pledge or encumbrance designed to secure the repayment of indebtedness or the satisfaction of any other obligation to a third party not a party to this Agreement. 1�I�I5f�i�'����.�'� �'�.��(0)�� �� �,� �,r �� ��Vc������� �, �� �;,�ll al �� "� �,� r} � ����� 'J��O I������'�I� Up a SECTION 2. PLEDGE. As security for the full and punctual performance of the Secured Obligations; Developer hereby pledges, assigns, and transfers to Fort Worth, and hereby grants to Fort Worth a security interest in, the Initial Security Funds and all rights and privileges pertaining thereto with the exception of the interest income to be derived therefrom, which interest income shall remain the property of Developer and shall be distributed by ESCROW AGENT in accordance with Developer's periodic instructions. (The Initial Security Funds and any substitution by Developer with a Payment and Performance Bond as permitted hereunder, are collectively referred to hereafter as the "Pledged Collateral"); TO HAVE AND TO HOLD the Pledged Collateral, together with all rights, titles, interests, privileges, and preferences appertaining to or incidental thereto unto Fort Worth subject, however, to the terms, covenants, and conditions hereinafter set forth. The security interest granted and the assignments made hereunder are made as security only and shall not subject Fort Worth or ESCROW AGENT to, or transfer or in any way affect or modify, any obligation of Developer with respect to any of the Pledged Collateral or any transaction involving or giving rise thereto. SECTION 3. PHYSICAL POSSESSION OF PLEDGED COLLATERAL. Concurrently with the execution of this Agreement, Developer shall have delivered to and deposited with ESCROW AGENT the Initial Security Funds representing or evidencing the Pledged Collateral. The parties acknowledge and agree that ESCROW AGENT shall be required to segregate the Pledged Collateral from other funds held by ESCROW AGENT for Developer in accordance with the normal practices of ESCROW AGENT as an Escrow Agent. ESCROW AGENT shall return a11 funds on deposit representing or evidencing the Pledged Collateral remaining in its possession to Developer (or take such other action as Developer may request or direct) immediately after receipt of written notice from Fort Worth that the Secured Obligations have been fully performed. During such time as ESCROW AGENT has possession of the Pledged Collateral, ESCROW AGENT sha11 furnish to Fort Worth (when requested by Fort Worth) written acknowledgments signed by an officer of ESCROW AGENT detailing the amount of the Pledged Collateral. SECTION 4. COVENANTS. (a) Affirmative Covenants. So long as any of the Secured Obligations remain unperformed, Developer covenants and agrees that Developer will: (i) from time to time execute . and deliver to Fort Worth a11 such assignments, certificates, supplemental writings, and other items and do all other acts or things as Fort Worth may reasonably request in order to evidence and perfect the security interest of Fort Worth in the Pledged Collateral: ' ���:�U�������.�G',� r'���uQD !' �L l�V� ���'; : G�' 4��"�G��1� ESCROW/PLEDGE AGREEMENT • PAGE 2 !``ij: C��r:��`?��a ����a D (ii) furnish Fort Worth with information which Fort Worth may reasonably request concerning the Pledged Collateral; and (iii) notify Fort Worth of any claim, action, or proceeding affecting title to the Pledged Collateral or Fort Worth's security interest therein. (iv) adjust the Pledged Collateral to an amount equal to the actual contract price, including revisions thereto. (b) Negative Covenants. So long as any of the Secured Obligations rema.in unperformed, Developer covenants and agrees that Developer will not: (i) assign or transfer any rights of Developer in the Pledged Collateral; or (ii) create an Lien in the Pledged Collateral, or any part thereof, or permit the same to be or become subject to any Lien except the security interest herein created in favor of Fort Worth. SECTION 5. EVENTS OF DEFAULT. Developer shall be in default under this Agreement only upon the happening of any of the following events (a "Default"): (a) default in the timely payment or performance of the Secured Obligations after written notice thereof has been given to Developer and ESCROW AGENT and such default is not cured within seven (7) days after such notice; (b) any affirmative or negative covenant is breached by Developer. SECTION 6. RIGHTS AND REMEDIES OF FORT WORTH UPON AND AFTER DEFAULT. (a) Remedy. Upon the occurrence of a Default, Fort Worth shall have the right to direct ESCROW AGENT to transfer to Fort Worth a11 of the Pledged Collateral. ESCROW AGENT is hereby authorized to transfer the Pledged Collateral immediately upon the receipt of a written statement purporting to be executed by an authorized representative of Fort Worth stating that: (i) a Default by Developer has occurred under the Blocks 176 & 177 Summerfields Addition Community Facilities Agreement executed in connection with this Escrow/Pledge Agreement; _�I �l_.=.�./-_1.r' �, I.� l� � c�� '���f�i��,� 0�=��� G �� JrC� li ���Y� r"��^ �%��SLi�1Ut�� PAGE 3 ESCROW/PLEDGE AGREEMENT �; 6� U c ,: ��,. r.� "A,;:� '=�?1i �' Gl( �'u'��f_���➢,����r�o (u) written notice of such Default has been given by Fort Worth to Developer and ESCROW AGENT and such Default was not cured within seven (7) days after such notice; and (iii) Fort Worth is entitled to have the Pledged Collateral transferred in accordance with the Agreement. (b) Notices. Any notice required or permitted to be given to any party hereto sha11 be given in writing, shall be personally delivered or mailed by prepaid certified or registered mail to such party at the address set forth below, and shall be effective when actually received. To Developer: FJM Properties, LLC 1223 N. Rock Road, Bldg. H2O0 Wichita, Kansas 67206 To Escrow A�;ent: Todd W. Tew, Attorney at Law 3220 W. Southlake Blvd., Suite C Southlake, Texas 76092 To Citv of Fort Worth: Attn: Raquel Velasquez City of Fort Worth Development Project Coordinator Department of Transportation and Public Works 1000 Throckmorton Fort Worth, TX 76102 ESCROW/PLEDGE AGREEMENT �_,.�,:._..—,--�_�___�. � . „ � �;��'��� U'��G�:�!� �c`���1))��G �^ T,r <�� ^ `�r`ll�r%lyl �; � U �1 C ���"`�o�� � �!a � ` �` 'r�^" IL y� 1 � '\` ,.� �.��. r rii'\,�"aV,fiq..__I�'���� PAGE 4 Any party may change its address for notice by giving all other parties hereto notice of such change in the manner set forth in this Section no later than ten (10) days before the effective date of such new address. SECTION 7. EXCLUSIVE RIGHTS AND REMEDIES. If the Developer fails to perform its obligations under the CFA, Fort Worth's sole and exclusive remedy sha11 be to complete the obligations of Developer at Developer's expense. In furtherance of such sole and exclusive remedy, Fort Worth is entitled to exercise its rights as set forth in Section 6 hereof. SECTION 8. SUBSTITUTION OF COLLATERAL. Notwithstanding any contrary provision in this Agreement, Developer shall have the right (without the consent of Fort Worth), at any time and from time to time, to obtain releases of all or any part of the Pledged Collateral (hereinafter called the "Released Collateral") upon satisfaction of the following conditions: (a) Developer shall provide Fort Worth and ESCROW AGENT written notice (the "Substitution Notice") that Developer desires to obtain Released Collateral (as specified and described in such notice) in exchange for a contemporaneous substitution of a Payment and Performance Bond (as also specified and described in the Substitution Notice); and (b) Developer shall pledge to, or obtain for the benefit of, Fort Worth, and deliver to Fort Worth a Payment and Performance Bond from a surety acceptable to Fort Worth (the "Substituted Collateral") which Substituted Collateral shall in the aggregate be at least equal to the Estimated Developer's Cost; and (c) Said Payment and Performance Bonds sha11 be accompanied by a written commitment from the surety that such Performance and Payment Bonds sha11 cover all work which has occuned prior to the substitution of Collateral provided for in this Section. Upon satisfaction of the above-specified conditions, ESCROW AGENT shall be authorized (without the consent of Fort Worth) to return to Developer the original Intended Security Funds in ESCROW AGENT's possession that represent or evidence the Released Collateral or take such other action with respect to the Released Collateral as Developer may request or direct. Developer shall pay the expenses incuned by ESCROW AGENT in connection with obtaining each such release and substitution. ESCROW/PLEDGE AGREEMENT —�:v��� ;����G��;�_�; G_���� ;�i°� c� � <<�-ii� �,, r,��,;:;;,�(�i��o�,� � u u ll c: a,-. �.���. f j':,� `� 71'il ��.�,� Cl, �,':`�..i������� � �51 PAGE 5 SECTION 9. PERIODIC WITHDRAWAL OF COLLATERAL Notwithstanding any contrary provision in this Agreement, Developer shall have the right to periodic withdrawals of the Pledged Collateral (hereina.fter called "Withdrawn Collateral"), upon satisfaction of the following conditions: (a) Developer shall provide Fort Worth and ESCROW AGENT with written notice (the "Withdrawal Notice"} that Developer desires to obtain the Withdrawn Collateral; and (b) the balance of the Pledged Collateral after withdrawal of the Withdrawn Collateral is at least equal to the estimated value of the Secured Obligations then remaining to be performed (such remaining value is hereinafter called the "Estimated Cost to Complete"). The Withdrawal Notice sha11 include a description of the Withdrawn Collateral and Developer's calculation of the Estimated Cost to complete. Upon receipt of the Withdrawal Notice, Fort Worth sha11 have seven (7) calendar days to notify Developer of Fort Worth's objection to Developer's calculation of the Estimated Cost to Complete by providing Developer with Fort Worth's calculation of the Estimated Cost to Complete. The grounds for any objection are limited solely to a good faith deternunation by Fort Worth that the balance of the Pledged Collateral is insufficient to cover the Estimated Cost to Complete. , If Fort Worth fails to timely notify Developer and ESCROW AGENT of any objection, the Developer's calculation shall be deemed to have been accepted and approved by Fort Worth and ESCROW AGENT is authorized to release the Withdrawn Collateral requested by Developer without delay. In the event a written objection is timely filed by Fort Worth and Fort Worth's calculation is within a range of five percent (5%) of Developer's Estimated Cost to Complete, then Developer sha11 be allowed to withdraw the amount corresponding to Fort Worth's calculation of the Estimated Cost to Complete. If Fort Worth's calculation of the Estimated Cost to Complete is outside a range of five percent (5%) of Developers' Estimated Cost to Complete, then Fort Worth and Developer, through a designated representative, will reconcile the calculations and jointly approve an Estimated Cost to Complete and advise ESCROW AGENT to disburse the amount originally submitted by Developer, less any amounts necessary to ensure that the balance of the Pledged collateral equals the Estimated Cost to Complete as jointly determined by Fort Worth and Developer. If after the expiration of two (2) years from the date of this Agreement either (i) none of the Secured Obligations have been performed; r�,.,,��„�„ „ or �':.�'':�'I�i'':; �G=�',C� r''��G(�) °'� (ii) the term of the CFA has not been e�ended by Fort Forth, 1��;1`��� C�(��;� C����/,��'� � f i � y?r�� U tCJ�� then in either event, Fort Worth shall be entitled to receive the Pledged l�� �ie,�'' ':���'���' F�-- ��-)� - specified in Section 6 and construct the improvements contemplated in the CFA. ESCROW/PLEDGE AGREEMENT PAGE 6 SECTION 10. NON-ASSIGNABILITY OF FORT WORTH'S RIGHTS. The rights, powers, and interest held by Fort Worth hereunder in and to the Pledged Collateral may not be transferred or assigned by Fort Worth in whole or in part. Any attempted transfer or assignment shall be absolutely void and shall entitle Developer to a release of all Pledged Collateral. SECTION 11. NO WAIVER. No waiver by Fort Worth of any Default shall be deemed to be a waiver of any other subsequent Default. No delay or omission by Fort Worth in exercising any right or power hereunder shall impair any such rights or power or be construed as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude other or further exercise thereof. SECTION 12. BINDING EFFECT. This Agreement shall be binding on the parties, their successors and assigns. No provision of this Agreement may be amended, waived, or modified except pursuant to a written instrument executed by Fort Worth, ESCROW AGENT and Developer. SECTION 13. CHOICE OF LAW. This agreement is to be construed and interpreted in accordance with the laws of the State of Texas. SECTION 14. COLINTERPARTS. This Agreement may be executed in any number of multiple counterparts and by different parties on separate counterparts, all of which when taken together shall constitute one and the same agreement. SECTION 15. ESCROW AGENT INDEMNITY. Developer hereby agrees to release, hold harmless, and indemnify ESCROW AGENT (and its directors, officers, employees, agents and representatives) from and against all claims, damages, expenses, costs, suits and other liability of any kind whatsoever that arise out of or are directly or indirectly related to the performance by ESCROW AGENT ; _ ._._._. _.__._«�._�,.� , ��=��;�-���;,� �� � r��r��,r��, ,. . U-�.; ��.=�.s �_ s,. ��� I, �j �I ��' �"L�� �J[ �/s' �;°� ; ii;r pllr-..,�,';���� (��,( �ii �.�„.,i: ;�.�, �.,. ����:� �,� �� - � � LSG���o ESCROW/PLEDGE AGREEMENT PAGE 7 of its duties hereunder except for the gross negligence or willful misconduct of ESCROW AGENT or its directors, officers, employees, agents or representatives. Date: �2v�y �,� ��r k���� bSGs Title: Assistant City Manager Todd W. Tew, Attorney at Law By: Title: ���+ti�YA-T �✓ Date: �{/Sf�O/ ��� -3�9-93 oa APPROVED: /�� CITY OF FORT WORTH �Y CITY ATTORNEY By: �J Date: / �/`� � � / r� � � Ji�� % /� �-�J Eontract Authaxi.x��,i�� i� bate ;�''[�i�u'� ���,!�L U�'��'���D f;: �? �' ���''�: G� ��; �� ESCROW/PLEDGE AGREEMENT PAGE 8 �� C�L����;_;��� �i��Sa , �