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HomeMy WebLinkAboutContract 39979CITV SECRETARY CONTRACT NO, CONTRACT OF SALE AND PURCHASE THIS CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into by and between the CITY OF FORT WORTH, a Texas municipal corporation, acting by and through its duly authorized Assistant City Manager ("Purchaser"), and Javier Vazquez ("Seller"), as of the date on which this Contract is executed by the last to sign of Seller and Purchaser ("Effective Date"). RECITALS 1. Seller is the owner of property legally known as Lot 1, Block 3, JARVIS HEIGHTS APARTMENTS, an Addition to the City of Fort Worth, Tarrant County, Texas according to plat recorded in Volume 3 8 8-103, Page 77, Deed Records of Tarrant County, Texas commonly known as 3617 Hardy Street, Fort Worth, Texas 76106, together with any easements, rights -of -way, licenses, interests, and rights appurtenant thereto (collectively, the "Property"). 2. Purchaser desires to purchase the Property, subject to the terms and conditions hereinafter set forth, including the right to terminate this Contract with no further obligation to Seller as provided herein. AGREEMENT In consideration of the mutual covenants in this Contract, Seller and Purchaser agree as follows: Section 1. Sale and Purchase. (a) Seller agrees to sell and convey the Property to Purchaser, and Purchaser agrees to purchase and accept the Property from Seller, for the purchase price (as defined below), subject to the terms and conditions set forth in this Contract. (b) Seller shall convey the Property to Purchaser free and clear of all liens, claims, easements, rights -of -way, reservations, restrictions, encroachments, tenancies, and any other encumbrances (collectively, the "Encumbrances") except the Encumbrances appearing in the Title Commitment and the survey (as defined below) that are not cured and that are subsequently waived pursuant to Section 3 ("Permitted Encumbrances"). (c) Seller shall convey all rights of title and interest in any water and surface rights in the Property. CITY SECRETARY t WORTH, TX Purchase from Vazquez Page 1 3617 Hardy St Rev 11/6/09 Section 2. Independent Contract Consideration and Purchase Price. (a) Contemporaneously with the execution of this Contract, Purchaser shall deliver to Seller a check in the amount of One Thousand and 00/100 Dollars ($1,000 00) ("Independent Contract Consideration") as independent consideration for Seller's execution, delivery and performance of this Contract and the further consideration of Seller granting to Purchaser the right to terminate this Contract during the Option Period (defined below in Section 6). This Independent Contract Consideration is in addition to and independent of any other consideration or payment provided for in this Contract, is non-refundable, and shall be retained by Seller notwithstanding any other provision of this Contract. In the event Purchaser purchases the Property, the Independent Contract Consideration shall be credited to the purchase price (as defined below). (b) The purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller at closing (as defined below), is One Hundred and Twenty Thousand and No/100's ($120,000.00). Section 3. Title Commitment and Survey. (a) Within ten (10) days after the Effective Date, Purchaser shall obtain at Purchaser's sole cost and expense (i) a Commitment for Title Insurance ("Title Commitment") from Alamo Title Company, Attn: Lavonne S. Keith 3500 Hulen Street, Fort Worth, TX 76107, Phone (817) 731-8715 Ext 1015, Fax (817) 731-0243 ("Title Company") setting forth the status of the title of the Property and showing all Encumbrances and other matters if any, relating to the Property; and (ii) a legible copy of all documents referred to in the Title Commitment, including but not limited to, plats, reservations, restrictions, and easements (b) On or before ten (10) days after the Effective Date, Purchaser may obtain, at Purchaser s sole cost and expense, an updated survey of the Property (the "Survey') at Purchaser's sole cost and expense. The Survey shall consist of a plat and field notes describing the Property prepared pursuant to a current on -the -ground staked survey performed by a registered public surveyor or engineer satisfactory to Purchaser and Title Company. The Survey shall (i) be certified to Purchaser, its successors and assigns, and Title Company, (ii) reflect the actual dimensions of and the total number of square feet within the Property net of any portion thereof lying within a publicly dedicated roadway or a utility easement, (iii) identify any rights - of -way, easements, or other Encumbrances by reference to applicable recording data, and (iv) include the Surveyor's registered number and seal and the date of the Survey. The description of the Property prepared as a part of the Survey will be used in all of the documents set forth in this Contract that require a legal description of the Property. (c) If the Title Commitment or Survey discloses any Encumbrances or other matters, which are not acceptable to Purchaser in Purchaser's sole discretion, then Purchaser shall give Seller written notice thereof within fifteen (15) days after receipt of the Title Commitment, Survey and all documents referred to in the Title Commitment, specifying Purchaser's objections Purchase from Vazquez Page 2 3617 Hardy St Rev 11/6/09 ("Objections") if any If Purchaser gives such notice to Seller, Seller shall use its best efforts to cure the Objections, but shall be under no obligation to do so. (d) If Purchaser gives notice of Objections and Seller does not cure the Objections, cause the Title Commitment and Survey to be amended to give effect to matters that are cured, and give Purchaser written notice thereof within the fifteen (5) day period following receipt of the notice of Objections from Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this Contract by giving written notice thereof to Seller at any time after the expiration of such Cure Period but prior to the expiration of the option period (as defined below in Section 6) and, upon such termination, neither party hereto shall have any further rights or obligations, or (ii) to waive the Objections and consummate the purchase of the Property subject to the Objections which shall be deemed to be Permitted Encumbrances. Notwithstanding the foregoing sentence, if Seller has commenced curing the Objections and is diligently prosecuting the same, as determined by Purchaser in Purchaser's sole discretion, then Purchaser in Purchaser's sole discretion may extend the Cure Period for an amount of time Purchaser deems necessary for Seller to cure the same. Section 4. Review Reports. Within five (5) days after the Effective Date, Seller shall deliver to Purchaser for Purchaser's review any and all environmental or engineering reports and studies in Seller's possession concerning the Property ("Reports"). Section 5. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right to go on to the Property, including the Improvements, to make inspections, surveys, test borings, soil analysis and other tests, studies and surveys including without limitation, environmental and engineering tests, borings, analysis, and studies ("Tests"). Any Tests shall be conducted at Purchaser's sole risk and expense. The Property will be restored by Purchaser to its original condition at Purchaser's sole expense following any site work. In the event this transaction does not close for any reason whatsoever, the Purchaser shall release to Seller any and all independent studies or results of Tests obtained during the option period (as defined below). Section 6. Option Period. (a) Notwithstanding anything to the contrary contained in this Contract, until Closing after the Effective Date ("Option Period"), the following is a condition precedent to Purchaser's obligations under this Contract. (1) Purchaser being satisfied in Purchaser's sole and absolute discretion that the Property is suitable for Purchaser s intended uses, including, without limitation, Purchaser being satisfied with the results of the Tests. (2) Satisfactory completion of environmental review and receipt by the City of Fort Worth of a release of funds from the United States Department of Housing and Urban Development under 24 CFR Part 58 for Purchaser's intended use of the Property. Purchase from Vazquez Page 3 3617 Hardy St Rev 11/6/09 (b) If Purchaser is not satisfied in Purchaser's sole and absolute discretion as to the condition precedent described in Section 6 (a) above, Purchaser may give written notice thereof to Seller on or before the end of the Option Period, whereupon this Contract shall terminate. Upon such termination, neither party shall have any further rights or obligations under this Contract. (c) If Purchaser gives notice of Contract termination to Seller under this Section, any harnest Money shall be returned to Purchaser. (d) The provisions of this Section 6 control all other provisions of this Contract. (e) The parties agree that the Option Period will not be extended upon expiration without a written amendment signed by both parties. Section 7. Closing Contingencies (a) The closing ("Closing") of the sale of the Property by Seller to Purchaser shall occur through the office of the Title Company in no more than fifteen (15) days after the satisfaction of the following contingencies to Closing ("Closing Contingencies '), but not later than March 3, 2010. The Closing Contingencies are as follows: Satisfactory completion of environmental review and receipt by the City of Fort Worth of a release of funds from the United States Department of Housing and Urban Development under 24 CFR Part 58 for Purchaser s intended use of the Property. (b) Purchaser agrees to pursue the approvals and agreements described in the Closing Contingencies above with reasonable diligence. Seller agrees to cooperate fully with Purchaser in connection with Purchaser's pursuit of the above approvals. (c) If any Closing Contingencies are not satisfied to Purchaser's satisfaction so that Purchaser is prepared to close on or before March 3, 2010, then Purchaser must terminate this Contract, and upon the termination, Seller shall retain the Fiarnest Money and any interest earned and neither party will have any further rights or obligations hereunder; however, the Closing may be extended if the Closing Contingencies are not satisfied if agreed to in writing by the parties. Section 8. Closing. Subject to Section (d) below, Closing shall occur on or after February 24, 2010 , but not later than March 3, 2010. (a) At the Closing, all of the following shall occur, all of which are deemed concurrent conditions: (1) Seller, at Seller's sole cost and expense, shall deliver or cause to be delivered to Purchaser the following: Purchase from Vazquez Page 4 3617 Hardy St Rev 11/6/09 (i) A General Warranty Deed ("Deed"), fully executed and acknowledged by Seller, conveying to Purchaser good and indefeasible fee simple title to the Property subject only to the Permitted Encumbrances, with the precise form of the Deed to be determined pursuant to Section 10 below; (ii) Any other instrument or document necessary for Title Company to issue the Owner Policy in accordance with Section 8(a) (3) below. (2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be delivered to Seller through the Title Company federally wired funds or a certified or cashier's check or such other means of funding acceptable to Seller, in an amount equal to the Purchase Price, adjusted for closing costs and prorations. (3) Title Company shall issue to Purchaser, at Purchaser's sole cost and expense, an Owner Policy of Title Insurance ("Owner Policy") issued by Title Company in the amount of the Purchase Price insuring that, after the completion of the Closing, Purchaser is the owner of indefeasible fee simple title to the Property, subject only to the Permitted Encumbrances, and the standard printed exceptions included in a Texas Standard Form Owner Policy of Title Insurance• provided, however, the printed form survey exception shall be limited to 'shortages in area," the printed form exception for restrictive covenants shall be deleted except for those restrictive covenants that are Permitted Encumbrances, there shall be no exception for rights of parties in possession, and the standard exception for taxes shall read: "Standby Fees and Taxes for the year of Closing and subsequent years, and subsequent assessments for prior years due to change in land usage or ownership". (4) Seller and Purchaser shall each pay their respective attorneys' fees. (5) Purchaser shall pay all closing costs including but not limited to escrow or settlement fees charged by the Title Company and all recording fees. (b) Ad valorem and similar taxes and assessments, if any, relating to the Property shall be prorated between Seller and Purchaser as of the Closing, based on estimates of the amount of taxes that will be due and payable on the Property during the calendar year in which the Closing occurs. As soon as the amount of taxes and assessments on the Property for that year is known, Seller and Purchaser shall readjust the amount of taxes to be paid by each party with the result that Seller shall pay for any taxes and assessments applicable to the Property up to and including the date of Closing, and Purchaser shall pay for those taxes and assessments applicable to the Property after the Closing. The provisions of this Section 8(b) survive the Closing. (c) Upon completion of the Closing, Seller shall deliver possession of the Property to Purchaser, free and clear of all tenancies of every kind. Purchase from Vazquez Page 5 3617 Hardy St Rev 11/6/09 3617 Hardy St (d) If Purchaser is not prepared to close on or before March 3, 2010, the Closing may be extended if agreed to in writing by the parties. Section 9. Agents. Seller and Purchaser each represent and warrant to the other that it has not engaged the services of any agent, broker, or other similar party in connection with this transaction other than Seller's agreement dated July 12 2009 with Yolanda Matos of Team Freedom Realty. Purchaser is not responsible for any real estate broker's fees or any other fees payable to Yolanda Matos, Broker, Team Freedom Realty TX. Section 10. Closing Documents. No later than fifteen (15) days prior to the Closing, Seller shall deliver to Purchaser a copy of the Deed, which is subject to Purchaser's reasonable right of approval. Section 11. Notices. (a) Any notice under this Contract shall be in writing and shall be deemed to have been served if (i) delivered in person to the address set forth below for the party to whom the notice is given, (ii) delivered in person at the Closing (if that party is present at the Closing), (iii) placed in the United States mail, return receipt requested addressed to such party at the address specified below, or (iv) deposited into the custody of Federal Express Corporation to be sent by Fedhx Overnight Delivery or other reputable overnight carrier for next day delivery, addressed to the party at the address specified below. (b) The address of Buyer under this Contract is: City of Fort Worth With a copy to: 1000 Throckmorton Street Fort Worth, Texas 76102 Attention: Laura B. Morales Chavez Housing & hconomic Development Department Real Property Services Division Telephone: 817-392-2311 Fax (817) 392-2431 (c) The address of Seller under this Contract is: Javier Vazquez 1319 Lyra Lane (Home Address) Arlington, TX 76013 (817) 496-8565 (Home Phone) Leann Guzman City of Fort Worth City Attorney's Office 1000 Throckmorton Fort Worth, Texas 76102 Telephone: (817)392-7600 Fax (817) 392-8359 (d) From time to time either party may designate another address or telecopy number under this Contract by giving the other party advance written notice of the change. Purchase from Vazquez Page 6 Rev 11/6/09 Section 12. Termination, Default, and Remedies. (a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant to this Contract at the Closing for any reason other than termination of this Contract by Purchaser pursuant to a right so to terminate expressly set forth in this Contact or Seller's failure to perform Seller's obligations under this Contract, then Seller, as Seller's sole and exclusive remedy, shall have the right to terminate this Contract by giving written notice thereof to Purchaser prior to or at the Closing, whereupon neither party hereto shall have any further rights or obligations hereunder. (b) If Seller fails or refuses to consummate the sale of the Property pursuant to this Contract at Closing or fails to perform any of Seller's other obligations hereunder either prior to or at the Closing for any reason other than the termination of this Contract by Seller pursuant to a right so to terminate expressly set forth in this Contract or Purchaser's failure to perform Purchaser's obligations under this Contract then Purchaser shall have the right to terminate this Contract by giving written notice thereof to Seller prior to or at the Closing and neither party hereto shall have any further rights or obligations hereunder. Section 13. Entire Contract. This Contract (including the attached Fixhibits) contains the entire contract between Seller and Purchaser, and no oral statements or prior written matter not specifically incorporated herein is of any force and effect. No modifications are bindmg on either party unless set forth in a document executed by that party. Section 14. Assigns. This Contract inures to the benefit of and is binding on the parties and their respective legal representatives, successors, and assigns. Neither party may assign its interest under this Contract without the prior written consent of the other party. Section 15. Time for Execution. If Seller has not executed and returned a fully executed copy of this Contract to Purchaser by 5 00 p.m., Fort Worth, Texas time on February 23, 2010, this Contract offer shall be null and void. Section 16. Taking Prior to Closing. If, prior to Closing, the Property or any portion thereof becomes subject to a taking by virtue of eminent domain, Purchaser may, in Purchaser's sole discretion, either (i) terminate this Contract and neither party shall have any further rights or obligations hereunder, or (ii) proceed with the Closing of the transaction with an adjustment in the Purchase Price to reflect the net square footage of the Property after the taking. Section 17. Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Texas. Section 18. Performance of Contract. The obligations under the terms of the Contract are performable in Tarrant County, Texas, and any and all payments under the terms of the Contract are to be made in Tarrant County, Texas. Purchase from Vazquez Page 7 3617 Hardy St Rev 11/6/09 Section 19. Venue. Venue of any action brought under this Contract shall be in Tarrant County, Texas if venue is legally proper in that County. Section 20 Severability. If any provision of this Contract is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. Section 21. Business Days. If the Closing or the day for performance of any act required under this Contract falls on a Saturday, Sunday, a legal holiday, or a day on which the City of Fort Worth is closed for public business, then the Closing or the day for such performance, as the case may be, shall be the next following regular business day. Section 22. Counterparts. This Contract may be executed in multiple counterparts, each of which will be deemed an original, but which together will constitute one instrument. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] Purchase from Vazquez Page 8 3617 Hardy St Rev 11/6/09 This Contract is EXECUTED as of the Effective Date. SELLER(S) JAVIER VAZQUEZ By: Javier Vazquez l 41 Date: 0 PURCHASER: CITY OF FORT WORTH By: 6,777E4.en:„4-el T. M. Higgins — Assisithatity Manager Date: z/z s/o APPROVED AS TO LEGALITY AND FORM i� 1 Assisi tant City Attorne Attetd by: Marty Hendrix, ity Sect!tr,4mo Ay*c,°° QOoI,labq b e Y. U ia ref g 1-0 ° Purchase from Vazquez 3617 Hardy St 001, ?.1, Cr d 0 0Ani 44% rex Ovre Dfle Contract Authorizatioa 2ZbiS Q i s OFFK ML. PECORD a!Tr,,'SECRETARY Li WORM Page 9 Rev 11/6/09 By its execution below, Title Company agrees to perform its other duties pursuant to the provisions of this Contract. TITLE COMPANY: By: (Lavonne S. Keith Title: Escrow Officer Name: Alamo Title Company 3500 Hulen Street Fort Worth, TX 76107 (817) 731-8715 Ext 1015 Lavonne.Keith(a,alamotitle.com Date: February 10, 2010 Purchase from Vazquez Page 10 3617 Hardy St Rev 11/6/09 Yt&C, Review • • CITY COUNCIL AGENDA DATE: CODE: SUBJECT: COUNCIL ACTION: Approved on 2/23/2010 2/23/2010 NO.: G G-16852 LOG NAME: NON- PUBLIC CONSENT HEARING: Authorize the Change in Use and Expenditure of $290,000.00 In Community Development Block Grant Funds for the Hardy Street Project; Authorize the Acquisition of 3601 Hardy Street from the Fort Worth Housing Finance Corporation for $75,500 00 and 3617 Hardy Street from Javier Vasquez for $120,000.00 Plus Estimated Closing. Costs of $8,000.00; and Authorize Substantial Amendment to the City's 2007-2008 and 2008-200S Action Plans (COUNCIL DISTRICT 2) Page t c Official site of the City of Fort Worth, T FoarWOW REFERENCE TYPE: 17HFC 3601/3617HARDY LAND PROJECT NO RECOMMENDATION: It is recommended that the City Council: 1 Authorize Substantial Amendment to the City's 2007-2008 and 2008-2009 action plans to change the use and add funding for the Handy Street Project; 2. Authorize the expenditure of $290,000.00 In Community Development Block Grant Funds for the Hardy Street Project including land acquisition, environmental site studies and demolition; 3. Authorize the acquisition of 3601 Hardy Street from the Fort Worth Housing Finance Corporation for $75,500 00 and 3617 Hardy Street from Javier Vasquez for $120,000.00 plus the payment of no more than $8,000 00 in closing costs for both acquisitions; and 4 Authorize the City Manager or his designee to execute and record the documents necessary to acquire the properties and to accept the conveyances. DISCUSSION: Staff proposes to develop a single-family infili housing project on approximately three acres located at the southwest comer of the intersection of Hardy Street and NE 36th Street. (See attached site plan) This infill housing development, to be known as the Hardy Street Project, will provide quality affordable, accessible housing in the Diamond Hill -Jarvis area for 21 low to moderate income families. The project site consists of a two parcels. The Board of the Fort Worth Housing Finance Corporation (HFC) agreed on November 3, 2009 to purchase the parcel located at 3801 Hardy Street from Jacques and Cindy Dao as part of its Infili Housing Development program. This property currently has an approximately 30,000 square foot abandoned nursing home on it that has been classified as a Category II structure by the Code Compliance Department This dilapidated structure is directly across the street from Diamond Hill -Jarvis High School and nearby Meacham Middle School and is frequently a target for gang graffiti and illegal dumping The second parcel located at 3617 Hardy Street is immediately to the north of and adjacent to the HFC parcel and is owned by Javier Vasquez. (See attached map.) In December 2009, this parcel became available and the City is currently negotiating with the property owner to purchase it. On February 2 2010, the HFC approved the sale of 3601 Hardy Street to the City so that Community Development Block Grant (CDBG) funds can be used to construct the required public infrastructure. The details of these acquisitions are as follows: Mi4i ; Review • • • Buyer City of Fort Worth City of Fort Worth Seller Fort Worth Housing Finance Corporation Javier Vasquez Physical Address 3601 Hardy Street 3817 Hardy Street TOTAL PURCHASE PRICE TOTAL CLOSING COSTS TOTAL ACQUISITION COSTS Legal Description Lot 2 Block 3 Jarvis Heights Apartments Addition, Tarrant County, Texas according to plat recording in Volume 388-103, Page 77, Deed Records of Tarrant County Lot 1, Block 3 Jarvis - Heights Addition,. Tarrant County, Texas according to plat recording in Volume 388-103, Page 77, Map Records of Tarrant County $195,000.00 $ 8.000.00 $203,500.00 Appraised Fair Market Value $75,500.00 $120,000.00 Page 2 c The City will pay closing costs of no more than $8,000.00 for both acquisitions. The remaining budget of $86,500 00 will be applied to development costs including environmental site studies and related environmental activities and a portion of the cost of the proposed demolition of the structure located on 3601 Hardy Street. Staff recommends the change in use and expenditure of $290,000.00 in CDBG funds for the Hardy Street Project. These CDBG funds were unused housing and project delivery funds Public comment periods conceming the change in use of these funds were held May 21, 2009 through June 22, 2009; November 7, 2009 through December 7, 2009; and December 21, 2009 through January 11, 2010. Any comments will be maintained by the Housing and Economic Dvelopment Department in accordance with federal regulations. This project is located in COUNCIL DISTRICT 2. Nithc Review • • • • • • FISCAL INFORMATION/CERT1FICATJQN: The Financial Management Services Director certifies that upon approval of the above recommendations, funds will be available in the current operating budget, as appropriated, of the Grants Fund. TO Fund/Account/Centere GR71 539120 005206270730 $145.000.00 GR78 539120 005208180740 $119.838.45 GR78 539120 005208180750 $25.181.55 FROM Fund/Accoust/Centere GR78 5XXXXX 005206180190 $119.838.45 GR78 5XXXXX 005206180200 $25.181,55 GR78 539120 00520627099Q $145.000,00 Page 3 Submitted for City Manager's Office by; Oar ginating Department Head; Additional Information Contactj Thomas Higgins (6192) Jay Chapa (5804) Cynthia Garda (8187) Dolores Garza (2639) ATTACHMENTS Hardy Street Project Map.ppt Hardy Street PROPOSED Site Plan 2009.01