HomeMy WebLinkAboutContract 52977 10/28/19
9:11 AM
Developer and Project Information Cover Sheet:
Developer Company Name: Saginaw 106,Ltd.
Address, State,Zip Code: 3045 Lackland Rd,Fort Worth,TX 76116
Phone&Email: 817-731-7595 dallen@lacklandholdings.com
Authorized Signatory,Title: Don Allen,Development Manager
Project Name and Brief Lasater Ranch,Phase 3
Description:
Project Location: Basswood Blvd at Montosa Trail
Plat Case Number: FR-17-054 Plat Name: Lasater Ranch Phase 3
Mapsco: 34V Council District: <CD#> City Project Number: 101341
CFA Number: 2017-202 DOE Number: <DOE#>
OFFICIAL RECORD
City of Fort Worth,Texas CITY SECRETARY
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.20 7 ®RTH ,�
CFA Official Release Date: 10.31.2016 TT
Page 1 of 10
CSC No.52977
ESCROW AGREEMENT TO REPLACE COMPLETION AGREEMENT
THIS ESCROW AGREEMENT(the"Agreement"),entered into as of this 25tn day of
October , 2019 , by and among Saginaw 106, Ltd.,A Texas Limited Partnership, by Windfall
Investments, Inc., its General Partner ("Developer"), the City f Fort Worth, a Texas municipal
corporation("Fort Worth")and Affiliated Bank,NA(`Escrow A�ent")is to witness the following:
WHEREAS, Developer and Fort Worth have enter d into a Coniinmfl7 y Facilities
Agreement for Lasater Ranch Phase 3 (CFA# 20.1:720 , City Project Number 101341 City
Secretary No. 50806) in the City of Fort Worth, Tarrant County,Texas(the "CFA");and
WHEREAS, the CFA provides that Developer shall s bmit to Fort Worth performance
bonds, cash deposits or other financial security acceptable fo Fort Worth (collectively, the
"Financial Security") for the purpose of guaranteeing satisfactory compliance by Developer with
all requirements,terms, and conditions of the CFA(the"CFA Obligations"); and
WHEREAS,the Developer previously executed a Comptetion Agreement(City Secretary
Contract No. 50806) as financial security guaranteeing satisfactory compliance with the CFA
Obligations for the project; and
WHEREAS,the Developer desires to replace the ComplItion Agreement with this Escrow
Agreement; and
WHEREAS, City staff have determined that the amount of this Escrow Agreement is
adequate financial security to guarantee satisfactory compliance by the Developer with the
remaining CFA 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 Escrow Agent, as an escrow agent,
in complete satisfaction of the obligation to submit the Financial Security to secure the
performance of the remaining CFA Obligations.
NOW THEREFORE, for and in consideration of these recitals, ten dollars ($10.00) and
other good and valuable consideration,the receipt, sufficiency and adequacy of which are hereby
acknowledged,the parties hereto hereby agree as follows:
SECTION 1. DEFINED TERMS.
For the purposes of this Agreement, unless the context otherwise clearly requires, the
following terms shall have the following meanings:
"Security Funds"shall mean the cash deposit of One Hundred Twenty Six Thousand Four
Hundred Seventy Nine Dollars and 69/100 ($ $126,479.69), which sum represents one
hundred twenty-five percent(125%) of the estimated Developer's cost of constructing the
remaining CFA Obligations (the"Estimated Developer's Cost").
City of Fort Worth,Texas OFFICIAL RECORD
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2 1CTT1Y SECRETARY
CFA Official Release Date: 10.31.2016 FT. WORTH,TX
Page 2 of 10
"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 of this Agreement.
SECTION 2. SECURITY FUNDS.
As financial security for the full and punctual performance of the remaining CFA
Obligations,Developer hereby pledges, assigns, and transfers to Fort Worth, and hereby grants to
Fort Worth a security interest in the 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) 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 the City of Fort Worth or Escrow Agent to, or transfer or in
any way affect or modify, any obligation of Developer with respect to the CFA Obligations or any
transaction involving or giving rise therefrom.
SECTION 3. PHYSICAL POSSESSION OF SECURITY FUNDS.
Concurrently with the execution of this Agreement,Developer shall have delivered to and
deposited with Escrow Agent the Security Funds. The parties acknowledge and agree that Escrow
Agent shall be required to segregate the Security Funds from other funds held by Escrow Agent
for Developer in accordance with the normal practices of Escrow Agent acting as an escrow agent.
Escrow Agent shall return all funds on deposit representing or evidencing the Security Funds
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 CFA Obligations have
been fully performed. During such time as Escrow Agent has possession of the Security Funds,
Escrow Agent shall furnish to the City of Fort Worth (when requested by Fort Worth) written
acknowledgments signed by an officer of Escrow Agent detailing the amount of the Security
Funds. Fort Worth's rights in the Security Funds shall be superior to those of Escrow Agent's
notwithstanding any terms or understandings (written or otherwise) between Developer and
Escrow Agent.
SECTION 4. COVENANTS.
(a) Affirmative Covenants. So long as any of the CFA Obligations remain unperformed,
Developer covenants and agrees that Developer will:
(i) from time to time execute and deliver to Fort Worth all 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 Security Funds;
(ii) furnish Fort Worth with information which Fort Worth may reasonably request
concerning the Security Funds;
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 JLE
CFA Official Release Date: 10.31.2016
Page 3 of 10
(iii) notify Fort Worth of any claim, action, or proceeding affecting title to the
Security Funds or Fort Worth's security interest(s)therein; and
(iv) adjust the Security Funds to an amount equal to the actual contract price,
including revisions thereto, if the original Security Funds were based on an
engineer's estimate of costs.
(b) Negative Covenants. So long as any of the CFA Obligations remain unperformed,
Developer covenants and agrees that Developer will not:
(i) assign or transfer any rights of Developer in e Security Funds; or
(ii) create any Lien in the Security Funds,or any thereof, or permit the same to
be or become subject to any Lien except the secu
rity 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 for or performance of the CFA 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 all of the S cunty Funds. Escrow Agent is
hereby authorized to transfer the Security Funds 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 related to the CFA Obligations;
(ii) written notice of such Default has been given by Fort Worth to Developer and
Escrow Agent and such Default was not cuied within seven (7) days after
delivery of such notice; and
(iii) Fort Worth is entitled to have the Security Funds transferred in accordance with
the Agreement.
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 JLE
CFA Official Release Date: 10.31.2016
Page 4 of 10
(b) Notices.Any notice required or permitted to be given to any party hereto shall 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:
Saginaw 106,Ltd.
Attention: Don Allen
3045 Lackland Rd
Fort Worth , TX 6116
To: Escrow Agent:
Affiliated Bank, NA.
Attention: Lee Herron
500 Harwood Rd
Bedford , TX 76Q21
To: City of Fort Worth
City Of Fort Worth
Attn: City Treasurer
200 Texas Street
Fort Worth, TX 76102
With a copy to:
City of Fort Worth
Attn: CFA Administration
200 Texas Street
Fort Worth, TX 76102
Any party may change its address for notice by giving all other parties hereto notice to 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 shall 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.
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 ME
CFA Official Release Date: 10.31.2016
Page 5 of 10
Notwithstanding any contrary provision in this Agreement,Developer shall have the right,
at any time and from time to time, to obtain releases of all or any part of the Security Funds
(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 the Developer desires to obtain Released Collateral in exchange for a
contemporaneous substitution of an alternate Financial Security acceptable to Fort
Worth(as 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 the alternate Financial Security 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 Substituted Collateral shall be of sufficient amount(s)to cover all work which has
occurred 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 further consent of Fort Worth) to return to Develo er the original Security Funds in
Escrow Agent's possession that represent or evidence the Rele;sed Collateral or take such other
action with respect to the Released Collateral as Developer may request or direct. Developer shall
pay the expenses incurred by Escrow Agent In connection obtaining each such release and
substitution.
SECTION 9 PERIODIC WITHDRAWAL OF COLLATE
Notwithstanding any contrary provision in this Agreement, eveloper shall have the right to
periodic withdrawals of the Security Funds (hereinafter called the "Withdrawn Collateral"),upon
satisfaction of the following conditions:
(a) Developer shall provide the City of Fort Worth and hscrow Agent with written notice
(the "Withdrawal Notice") that Developer desires to obtain the Withdrawn Collateral
in any amount less than or equal to the then-comple d CFA Obligations as inspected
or accepted by Fort Worth; and
(b) the balance of the Security Funds after withdrawal f the Withdrawn Collateral is at
least equal to the estimated value of the CFA Obligations then remaining to be
performed (such remaining value is hereinafter called the "Estimated Cost to
Complete").
The Withdrawal Notice shall 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
shall 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 determination by Fort Worth that the balance of the Security Funds is insufficient to
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 ME
CFA Official Release Date: 10.31.2016
Page 6 of 10
cover the Estimated Cost to Complete. If Fort Worth fails to timely notify Developer and Escrow
Agent of any objection, then Developer's calculation shall be deemed to have been accepted and
approved by the City of 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 shall 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
Developer's 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 as jointly determined.
If after the expiration of two (2) years from the date of this Agreement either:
(i) none of the CFA Obligations have been performed; or
(ii) there has been partial performance but the term of the CFA has not been extended
by Fort Worth; then
in either event, the City of Fort Worth shall be entitled to receive the Security Funds as specified
in Section 6 and construct the improvements contemplated in the CFA.
SECTION 10. NON-ACCESSIBILITY OF FORT WORTH'S RIGHTS.
The rights,powers,and interests held by Fort Worth hereunder in and to the Security Funds
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 Security Funds.
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 right 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.
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 ME
CFA Official Release Date: 10.31.2016
Page 7 of 10
SECTION 14. COUNTERPARTS.
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. 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 of its duties hereunder
except for the gross negligence or willful misconduct of Escrow Agent or its directors,
officers, employees, agents or representatives and Developer hereby agrees to release, hold
harmless,and indemnify Fort Worth(and its respective 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 any
actions or inaction by Fort Worth with respect to this Agreement.
SECTION 16. PAYMENT OF ESCROW FEES
Developer will be responsible for the payment of all fees to Escrow Agent associated with
this Agreement.
REMAINDER OF THIS PAGE INTENTIONALLY BLANK
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 JLE
CFA Official Release Date: 10.31.2016
Page 8 of 10
ACCORDINGLY,the City of Fort Worth,Developer and Escrow Agent have each caused
this instrument to be executed in quadruplicate in each entity's respective name by its duly
authorized signatories effective as of the date executed by the City Manager or his/her designee.
CITY OF FORT WORTH DEVELOPER
Saginaw 106,LTD.,a Texas Limited Partnership
iJY/J� by Windfall Investments,Inc.,its General Partner
�y,`/l
Dana Burghdoff 0 25,2019
Dana Burghdoff bay
Interim Assistant City Manager Don Men(Oct 22,2019)
Oct 25 2019 Name: Don Allen
Date: I Title: Development Manager
Approved at to Form &Legality: Date: Oct 22,2019
A;-,/__ X, &Ll' ESCROW AGENT
Richard A.McCracken(Oct 23,2019) Affiliated Bank,NA.
Richard A. McCracken
Assistant City Attorney
M&C No. N/A sae Iferron
Date: Lee Herron(Oct 23,2019
Form 1295 Name: Lee Herron
Title: Senior Vice President
ATTEST: �."'�`�~'•� �,.
Date:Oct 23,2019
��-�•: ••.vim
`•13 ` Contract Compliance Manager
Mary J.Kayser(Oct 27,2019)
Mary J. Kayser ,:* By signing I acknowledge that I am the
City Secretary person responsible for the monitoring and
xAs administration of this contract, including
ensuring all performance and reporting
requirements.
Evelyn Robei (Oct 1 23,20191
Janie Morales
Development Manager
City of Fort Worth,Texas OFFICIAL RECORD
Escrow Pledge Agreement to Replace Completion Agreement Revised ObWgMETARY
CFA Official Release Date: 10.31.2016
Page 9 of 10 FT. WORTH,TX
ATTACHMENT "1"
Changes to Standard Agreement
Escrow Pledge Agreement to Replace Completion Agreement
None.
City of Fort Worth,Texas
Escrow Pledge Agreement to Replace Completion Agreement Revised 09.07.2017 JLE
CFA Official Release Date: 10.31.2016
Page 9 of 10