HomeMy WebLinkAboutContract 33575-A3 CITY SECRETARY
CONTRACT NO. --
AMENDMENT NO. 3 TO
COMMUNITY FACILITIES AGREEMENT
This AMENDMENT NO. 3 TO COMMUNITY FACILITIES AGREEMENT
("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 WATERVIEW ESTATES, L.P. ("Developer").
RECITALS
A. The City and Developer have entered into that certain Community
Facilities Agreement, as previously amended by that certain Amendment No. 1 to
Community Facilities Agreement and Amendment No. 2 to Community Facilities
Agreement (collectively, the "CFA"), pursuant to which Developer will construct certain
drainage improvements, defined in the CFA collectively as the "Public Improvements",
as part of a new single-family residential development known as the "Waterfront at
Enchanted Bay." The CFA is a public document on file in the City Secretary's Office as
City Secretary Contract Nos. 33575, 37280 and 37280-A2.
B. Pursuant to and in accordance with the CFA, Developer agreed to pay all
costs of the Public Improvements and the City agreed to reimburse Developer for such
costs. not to exceed $439,571.61. The CFA provides that the amount of this
reimbursement is subject to payment in installments and reduction if, among other things,
Developer fails to construct at least one hundred fifty (150) single-family residences by
the Completion Date, as defined in Section I.D of the CFA, and that the CFA will
automatically terminate if at least one hundred fifty (150) single-family residences have
not been completed by June 2, 2011.
C. Due to unforeseen economic circumstances since the CFA was originally
executed in 2006, Developer's construction schedule for the single-family residences has
been delayed. As a result, Developer has requested that the City amend the CFA to
extend the date of automatic termination of the CFA for failure of Developer to
Substantially Complete at least one hundred fifty (150) single-family residences from
June 2, 2011 to December 31, 2014. The City is willing to comply with Developer's
request solely pursuant to and in accordance with this Amendment.
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the City and Developer agree as follows:
AGREEMENT OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
Page l
Amendment No. 3 to Community Facilities Agreement
between City of Fort Worth and Waterview Estates,L.P.
1. The City and Developer hereby agree that the recitals set forth above are true and
correct and form the basis upon which the City has entered into this Amendment.
2. The CFA is hereby amended to delete the last sentence of Section I.D and to
replace it with the following sentence:
Thereafter, the City shall pay periodic installments of 10% of the
City Participation Amount within thirty (30) calendar days
following the date as of which an additional 15 (fifteen) Private
Improvements have been Substantially Completed; provided,
however, that this Agreement shall automatically terminate and
the City shall have no further obligation to Developer, regardless
of whether Developer has received the full City Participation
Amount, if at least one hundred fifty (I50) Private Improvements
have not been Substantially Completed by December 31, 2014.
3. This Amendment contains the entire understanding and agreement between the
City and Developer as to the matters specifically contained herein. All terms and
conditions of the CFA that are not directly amended by this Amendment shall remain in
full force and effect. Capitalized terms used, but not defined, in this Amendment shall
have the meanings assigned to them in the CFA.
EXECUTED to be effective as of the later date below:
Approval Recommended:
Transportation and Public Works
Department:
By:
William Ve cest
Director
Page 2
Amendment No.3 to Community Facilities Agreement
between City of Fort Worth and Waterview Estates.L.P.
CITY OF FORT WORTH: WATERVIEW ESTATES, L.P.,
a Texas limited partnership:
By: Pars Investments, Inc., a
Texas corporation and its general
partner:
By: By:
Fernando Costa Mehrdad Moayedi
Assistant City Manager President
Date: /.a�8/p Date:
APPROVED AS TO FORM AND LEGALITY:
e. J LAURA WAYLAND
commission E Aires e
By: July 14, 2012 i
]Peter Vaky
Assistant City Attorney
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OFFICIAL RECORD
Page 3 CITY SECRETARY
Amendment No.3 to Community Facilities Agreement FT. WORTH, TX
between City of Fort Worth and Waterview Estates,L.P,
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 11/16/2010
DATE: Tuesday,November 16,2010 REFERENCE NO.: **C-24591
LOG NAME: 17WEBAMEND3
SUBJECT:
Authorize Execution of Amendment No. 3 to City Secretary Contract No. 33575,an Enhanced Community
Facilities Agreement with Waterview Estates,L.P.,for Extension of the Project Deadline to December 31,
2014(COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute Amendment No. 3 to City
Secretary Contract No. 33575,an Enhanced Community Facilities Agreement with Waterview Estates,L.P.,
for extension of the project deadline to December 31,2014.
DISCUSSION:
On March 21, 2006, the City Council authorized the execution of an Enhanced Community Facilities
Agreement (ECFA) with Waterview Estates, L.P., pursuant to which Waterview Estates, L.P. (Developer)
agreed to the installation of storm drainage facilities for the development of Waterfront at Enchanted Bay
residential development in east Fort Worth (M&C C-21358). Under the ECFA, Developer would be
reimbursed for the costs of these public improvements on a sliding scale,equal to 10 percent of the costs for
every 15 single—family homes constructed by Developer. Full reimbursement, therefore, would not be
received unless 150 single—family homes were constructed. The ECFA would expire on June 2,2008.
Due to unforseen delays in constructing the development,the Developer twice requested an extension of the
ECFA's expiration date. On June 10,2008,the City Council authorized execution of Amendment No. 1 to the
ECFA extending the expiration date from June 2, 2008 to June 2, 2011, with a requirement that at least 60
homes be completed by June 2, 2009 (M&C C-22842). On March 10, 2009 (M&C C-23391), the City
Council authorized the City Manager to execute Amendment No. 2 to delete the requirement that at least 60
homes be completed by June 2, 2009. All other terms of the agreement remained intact, including the
continuing right of the City to terminate the CFA if 150 single—family homes were not substantially
completed by June 2,2011.
In October of 2010, Developer approached the City to request an additional extension of the completion
deadline in order to meet agreement commitments. The economic downtown has had a negative impact on
the ability to complete the project within the required time frame. The original home builder on the project
filed for bankruptcy as a result of the slow down in home sales. Additionally the development suffered from
the frequent theft of construction materials once the project slow down occurred. These issues have created
an obstacle for the developer in securing a new home builder for the project. Consequently,the developer is
considering gating off the subdivision and making the streets private in order to make the development more
secure. This option is currently being discussed with existing homeowners. The time extension being
requested is to allow this process to be completed so that a new builder can be secured.
The Developer has built thirty—one homes and is preparing to aggressively initiate the new building program
to finish Phase One of the development. The request calls for an amendment to the ECFA to extend the
completion deadline to December 31, 2014. All other terms and conditions of the agreement would remain in
effect. This new schedule would require approximately thirty—six houses a year to be completed in order to
receive the full ECFA funding.
This project is located in COUNCIL DISTRICT 5.
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: Susan Alanis (8180)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Robert Sturns (8003)
ATTACHMENTS
1. Enchanted Bay CFA Amendment#3.doc