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HomeMy WebLinkAboutContract 42803;ITYSECRETARY �U CONTRACT NO. z CONSTRUCTION LOAN AGREEMENT THIS CONSTRUCTION LOAN AGREEMENT (hereinafter referred to as the "Agreement") is made and entered into as of ,,.,2\(1\AN , 2012 by and between FWS REALTY, LTD., a Texas limited partnership ("Borrower"), whose address for notice hereunder is 3 825 Camp Bowie Boulevard, Fort Worth, Texas 76107, and the CITY OF FORT WORTH (hereinafter referred to as "City" or "Lender"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through Fernando Costa, its duly authorized Assistant City Manager, whose address for notice hereunder is Aviation Department, 4201 North Main Street, Suite 200, Fort Worth, Texas 76106-2749, in respect of a loan in the principal sum of SIX HUNDRED THOUSAND AND NO/100 DOLLARS ($600,000.00). WHEREAS, according to a 2005 economic impact analysis of Fort Worth Spinks Airport ("Spinks"), general aviation activity in the State of Texas results in thousands of jobs and billions of dollars in economic activity; and WHEREAS, Texas airports serve as the base of operation for diverse business groups and the gateway to industrial areas; and WHEREAS, the Texas tourism industry relies upon general and commercial aviation to transport visitors to and around the state; and WHEREAS, growth of its general aviation airports is important to the continued economic growth and vitality of the City of Fort Worth; and WHEREAS, Spinks is adjacent to Interstate Highway 35W and convenient to both tourist attractions and lodging and industrial and business areas; and WHEREAS, according to the 2005 economic impact analysis of Spinks, the direct and indirect financial impact of Spinks is approximately $9.3 million annually; and WHEREAS, over the last five years, the number of aircraft based at Spinks Airport has increased approximately twenty-five percent and the number of transient aircraft has increased approximately thirty percent; and WHEREAS, continued development of Spinks will lead to increased economic benefits for the City of Fort Worth; and WHEREAS, as recommended by the City's 2010 Comprehensive Plan, adopted by the City Council pursuant to Ordinance No. 19044-02-2010, and in accordance with Resolution No. 3 716-03 -2009, the City has established an economic development Program pursuant to which the City will, on a case -by -case basis, offer economic development incentives authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants of public money, as well as the provision of personnel and services of the City, to businesses and entities that the City determines will promote state or local economic development and stimulate business and commercial activity in the City in return for verifiable commitments from such 1141457 2 1 01 - I Al 0 01 I OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX • businesses or entities to cause specific employment and other public benefits to be made or invested in the City, as particularly determined by the City (the "380 Program') and WHEREAS, as part of the 380 Program, the City wishes to loan certain public funds to Borrower for construction of certain Improvements (as defined herein) at Spinks, as more specifically set forth in this Agreement, in return for the economic benefits that will accrue to the City as a result of the Improvements and the increased economic strength that the Improvements will provide to Spinks; and WHEREAS, this Agreement is authorized by Chapter 380 of the Texas Local Government Code; NOW, THEREFORE, the City and Borrower, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: ARTICLE 1 DEFINITIONS For purposes of this Agreement, the following terns shall have the meanings indicated: 1.1 Advance: The teen "Advance" shall mean a disbursement by Lender of any of the proceeds of the Loan and/or the Borrower's Deposit. 1.2 Affidavit of Borrower: The tern "Affidavit of Borrower" shall mean a sworn affidavit of Borrower (and such other parties as Lender may require) in form and substance satisfactory to Lender to the effect that all statements, invoices, bills, and other expenses incident to the construction of the Improvements incurred to a specified date, whether or not specified in the Approved Budget, have been paid in full, except for (a) amounts retained pursuant to any Construction Contract, and (b) items to be paid from the proceeds of an Advance then being requested or in another manner satisfactory to Lender. 1.3 Application for Advance: The term "Application for Advance" shall mean a written application (on a form approved by Lender) by Borrower (and such other parties as Lender may require) to Lender specifying by name current address, and amount with respect to all parties to whom Borrower is obligated for labor, materials, or services supplied for the construction of the Improvements and all other expenses incident to the Loan, the Property, and the construction of the Improvements, whether or not specified in the Approved Budget, requesting an Advance for the payment of such items, containing, if requested by Lender, an Affidavit of Borrower, accompanied by such schedules, affidavits, releases, waivers, statements, invoices, bills, and other documents as Lender may reasonably request. 1.4 Approved Budget: The teini "Approved Budget" shall mean a budget or cost itemization prepared by Borrower and approved by Lender in writing, specifying the cost by item of (a) all labor, materials, and services necessary for the construction of the Improvements in accordance with the Plans and all Governmental Requirements, and (b) all other expenses Construction Loan Agreement FWS Realty, Ltd. 2 anticipated by Borrower incident to the Loan, the Property, and the construction of Improvements. 1.5 Architect: The teini "Architect" shall mean the architect retained by Borrower for preparation of the Plans. 1.6 Borrower: The teini "Borrower" shall mean all parties named Borrower in the first paragraph of this Agreement 1.7 Borrower's Deposit: The teats "Borrower's Deposit" shall mean such cash sums as Lender may deem necessary, from time to time until all obligations under the Loan Documents have been satisfied, in addition to the Loan for the payment of the costs of labor, materials, and services required for the construction of the Improvements, interest owing or to become owing on the Loan from time to time, other costs and expenses specified in the Approved Budget, other costs and expenses required to be paid in connection with the construction of the Improvements in accordance with the Plans and any Governmental Requirements, and any other costs and expenses arising in connection with the leasing, operation, development and/or construction of the Property. 1.8 Construction Contracts: The term "Construction Contracts" shall mean any and all contracts, written or oral, between Borrower and the General Contractor, between Borrower and any other original contractor, between any of the foregoing and any subcontractor, and between any of the foregoing and any other person or entity relating in any way to the construction of the Improvements, including the performing of labor or the furnishing of standard or specially -fabricated materials in connection therewith. 1.9 Debtor Relief Laws The teini "Debtor Relief Laws" shall mean any applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, insolvency reorganization, or similar laws affecting the rights of remedies of creditors generally, as in effect from time to time 1.10 Intentionally Deleted. 1.11 Event of Default: The term "Event of Default" shall mean the occurrence of any one of the following: (a) the failure, refusal or neglect of Borrower to make due and punctual payment of the Note or of any other secured indebtedness or any portion thereof, as the same shall become due and payable, whether at maturity or when accelerated pursuant to any power to accelerate contained in the Note or contained herein and such failure continues for more than ten (10) days after written notice thereof shall have been given by Lender to Borrower; provided however, Lender is not obligated to provide more than three (3) such notices during any twelve (12) month period; or (b) the failure of Borrower timely and properly to observe, keep or perform any covenant, agreement, warranty or condition required herein or under any other Loan Document (as hereinafter defined), to be observed, kept or performed; or Construction Loan Agreement FWS Realty, Ltd. 3 (c) any material representation contained herein or in any other Loan Document or otherwise made by Borrower or any other person or entity to the Lender in connection with the Loan is knowingly false or misleading at the time such representation is made; or (d) Borrower becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the benefit of creditors, or admits in writing its inability to pay its debts as they become due; or (e) Borrower is generally not paying its debts as such debts become due; or (f) a receiver, trustee or custodian is appointed for, or takes possession of, all or substantially all of the assets of Borrower or any part of the Property, either in a proceeding brought by Borrower or in a proceeding brought against Borrower and such appointment is not discharged or such possession is not terminated within sixty (60) days after the effective date thereof or Borrower consents to or acquiesces in such appointment or possession; or (g) Borrower files a petition for relief under the United States Bankruptcy Code or any other present or future federal or state insolvency, bankruptcy or similar law (all of the foregoing hereinafter collectively called "applicable Bankruptcy Law') or an involuntary petition for relief is filed against Borrower under any applicable Bankruptcy Law and such involuntary petition is not dismissed within sixty (60) days after the filing thereof, or an order for relief naming Borrower is entered under any applicable Bankruptcy Law, or any composition, rearrangement, extension, reorganization or other relief of debtors now or hereafter existing is requested or consented to by Borrower; or (h) the Property or any part thereof is taken on execution or other process of law in any action against Borrower; or (i) Borrower fails to have discharged within a period of thirty (30) days any attachment, sequestration or similar writ levied upon any property of Borrower; or (j) Borrower fails to pay within thirty (30) days any final money judgment against Borrower; or (k) Borrower abandons all or a portion of the Property for a period of thirty (30) consecutive calendar days or (1) the holder of any lien or security interest on the Property (without hereby implying the consent of the Lender to the existence or creation of any such lien or security interest) declares a default thereunder or institutes foreclosure or other proceedings for the enforcement of its remedies thereunder; or Construction Loan Agieement FWS Realty, Ltd. 4 (m) without the prior written consent of the Lender, Borrower leases, assigns, transfers, conveys or otherwise disposes of all or any part of the Property or any interest therein, it being understood that the consent of Lender required hereunder may be refused by Lender in its sole discretion or may be predicated upon any terns, conditions and covenants deemed advisable or necessary in the sole discretion of Lender, including but not limited to the right to change the interest rate, date of maturity or payments of principal and/or interest on the Note, to require payment of any amount as additional consideration as a transfer fee or otherwise and to require assumption of the Note and the Deed of Trust; or (n) Borrower dissolves, liquidates, merges or consolidates or any interest in Borrower is sold, assigned, transferred, mortgaged, pledged, encumbered or otherwise disposed of, voluntarily or involuntarily, without the prior written consent of the Lender. 1.12 Financial Statements* The tern "Financial Statements" shall mean such balance sheets, profit and loss statements, reconciliations of capital and surplus, changes in financial condition, schedules of sources and applications of funds, operating statements with respect to the Property, and other financial information of Borrower as shall be required by Lender, from time to time, which statements, if required by Lender, shall be certified by an independent certified public accountant. 1.13 Financing Statements' The teiuu "Financing Statements" shall mean the Form UCC-1 financing statements securing the Loan to be filed with the appropriate offices for the perfection of a security interest in any of the Property. 1.14 General Contractor: The teiui "General Contractor" shall mean H.C. Construction, L L C or its assigns.. 1.15 Governmental Authority: The term "Governmental Authority" shall mean any and all courts, boards, agencies, commissions, offices or authorities of any nature whatsoever for any governmental unit (federal, state, county district, municipal, city or otherwise) whether now or hereinafter in existence exercising jurisdiction over Borrower or the Property. 1 16 Governmental Requirements: The term "Governmental Requirements" shall mean all applicable restrictive covenants, applicable health and environmental laws and regulations, zoning ordinances, building codes and all other applicable laws, statutes, ordinances, rules, regulations, orders and decrees of any Governmental Authority applicable to Borrower or the Property, including, but not limited to the Americans with Disabilities Act of 1990 (all of the foregoing hereinafter sometimes collectively called "Applicable Laws"). 1.17 Ground Lease: The term "Ground Lease" shall mean that certain Ground Lease Agreement with Mandatory hmprovements for Lease Site NW-3 entered into by and between Lender and Borrower of even date herewith concerning the Property and Improvements 1.18 Intentionally Deleted. Construction Loan Agreement FWS Realty, Ltd. 5 1.19 Improvements• The teen "Improvements" shall mean any and all buildings, structures, and other facilities now existing on the Property or constructed thereon subsequent to the date hereof. 1.20 Land: The tern "Land" shall mean the real estate located in the City of Fort Worth, Tarrant County Texas, as more particularly described in Exhibit ` A ' attached hereto and made a part hereof, all fixtures or other Improvements situated thereon, and all of Borrower's rights, titles and interests appurtenant thereto 1.21 Lender: The tern "Lender" shall mean the Lender named in the first paragraph of this Agreement. 1.22 Leases: The teiui "Leases" shall mean any and all leases, subleases, licenses, concessions or other agreements (written or oral, now or hereafter in effect) which grant a possessory interest in and to, or the right to use, the Property (hereinafter defined) together with all security and other deposits made in connection therewith and all other agreements, such as engineer's contracts, architect's contracts, utility contracts, maintenance agreements and service contracts, which in any way relate to the design, use occupancy, operation, maintenance, enjoyment or ownership of the Property; save and except the Ground Lease. 1.23 Legal Requirements' The term "Legal Requirements shall mean Borrower's Limited Partnership agreement 1.24 Loan: The teini "Loan" shall mean the Loan by Lender to Borrower, in the amount set forth in the first paragraph of this Agreement not to exceed, in the aggregate, the costs of labor, materials, and services supplied for the construction of the Improvements, specified in the Approved Budget, and all other expenses incident to the construction of the Property, all as specified in the Approved Budget. 1.25 Loan Documents: The term "Loan Documents" shall mean this Agreement, the Note, the Ground Lease, and any and all other documents now or hereafter executed by Borrower to evidence or secure the payment of the Loan or performance of the Obligations. 1.26 Intentionally Deleted. 1.27 Note: The tern "Note" shall mean the promissory note dated of even date herewith from Borrower payable to Lender in the amount of and evidencing the Loan. 1.28 Obligations: The term "Obligations" shall mean any and all of the covenants, warranties, representations and other obligations (other than to repay the Loan) made or undertaken by Borrower to Lender as set forth in the Loan Documents or the Ground Lease. 1.29 Plans: The tern "Plans" shall mean the final plans and specifications for the development and construction of the Improvements, to be prepared by the Architect, and all amendments and modifications thereof, a true and correct original counterpart of all of which shall be delivered to Lender. Construction Loan Agreement FWS Realty, Ltd. 6 1.30 Property: The teen "Property' shall mean the Land, Improvements, Ground Lease, and Leases, and all other property (real, personal or mixed) on which a lien or security interest is placed or granted to secure the repayment of the Loan. ARTICLE 2 BORROWER'S WARRANTIES AND REPRESENTATIONS Borrower hereby unconditionally warrants and represents unto Lender as follows: 2.1 Financial Statements: The Financial Statements heretofore furnished by Borrower to Lender are true and correct in all material respects, are complete as of the dates specified therein, have been prepared in accordance with generally accepted accounting principles for the cash method of accounting consistently applied and fully and accurately present the financial condition of the subject thereof. No matenal adverse change has occurred in the financial condition reflected therein since the dates of such Financial Statements 2.2 Litigation: There are no actions, suits or proceedings pending, or to the knowledge of Borrower threatened, against or affecting Borrower or the Property. No event has occurred (including specifically Borrower's execution of the Loan Documents and its consummation of the Loan represented thereby) which will violate be in conflict with, result in the breach of or constitute (with due notice of lapse of time, or both) a default under any Legal Requirement or result in the creation or imposition of any lien charge or encumbrance of any nature whatsoever on the Property other than the security interests created by or referred to in the Loan Documents. 2.3 Compliance With Local Requirements* Borrower has (or will have, prior to commencement of construction of the Improvements) (i) received all requisite building peinnits and approvals to the Plans, and (ii) in general, comphed with all Governmental Requirements required to be met prior to commencement of development or construction of the Improvements in accordance with the Plans. 2.4 Validity of Loan Documents: All action on Borrower's part requisite for the due authorization creation, issuance, execution and dehvery of the Loan Documents has been duly and effectively taken, and each such document constitutes a legal and binding obligation of, and is valid and enforceable against, Borrower in accordance with the teuns thereof, except as limited by Debtor Relief Laws. No basis presently exists for any claims against Lender under the Loan Documents and enforcement of the Loan Documents is subject to no defenses. ARTICLE 3 BORROWER'S COVENANTS AND ASSIGNMENTS OF CONSTRUCTION CONTRACTS AND PLANS Borrower hereby unconditionally covenants with Lender as follows: Construction Loan Agreement FWS Realty, Ltd. 7 3.1 Construction of Improvements: The development and construction of the Improvements will be commenced and completed by Borrower in accordance with the terms of the Ground Lease, will be prosecuted by Borrower with diligence and continuity to completion and will be completed by Borrower in a good and workmanlike manner in substantial accordance with the Plans and the other provisions of this Agreement, free and clear from all liens, or claims for liens. It is expressly understood and agreed that (a) development and construction of the Improvements shall not be commenced unless and until Borrower has furnished the Plans, as approved by all applicable Governmental Authorities, to Lender and afforded Lender the opportunity to accept same (which acceptance shall be evidenced, if at all, by Lender s inrtialmg same), (b) when the Plans have been furnished to Lender, no changes of a material nature will be made therein by, or be permitted to be made therein by, Borrower, Architect or any other person or entity without the prior written approval therefor of all requisite Governmental Authorities, prior compliance with all requisite Govermnental Requirements and prior acceptance (if the Lender so elects and the proposed changes are material in nature) by the Lender, and (c) in instances where Lender does accept the Plans (or any change therein), such acceptance shall not in any way be deemed to imply any warranty, representation or approval by Lender that such Improvements, if so developed and constructed, will be structurally sound or will have a market value of any particular magnitude. 3.2 Affirmative Covenants: At all times and in any reasonable manner during construction of the Improvements, Borrower will: (a) permit Lender and its representatives to enter upon the Land and onto the Improvements, to inspect the same and all materials to be used in the development and construction thereof and to examine all detailed Plans and shop drawings, (b) comply strictly with any and all Govermnental Requirements required to be complied with incidental to such development or construction, (c) deliver to Lender or its representatives immediately upon demand, counterparts and/or conditional assigmnents of any and all Construction Contracts, bills of sale, statements, conveyances, receipted vouchers or agreements of any nature under which Borrower claims title to any materials or supplies used or to be used in the development or construction of the Improvements, (d) utilize all advances to it by Lender for, and only for, payment of the costs itemized in Section 4 2 hereinbelow; and under no circumstances shall Borrower use, directly or indirectly, any portion of such advances for any other purpose, including specifically the defrayment of living expenses or the anticipation of profit to Borrower, (e) obtain, or require to be obtained, and maintain in full force and effect an owner's and contractor's liability insurance policy or policies (including workman's compensation insurance for the owner, contractor and subcontractor), all such insurance policies to be issued by such companies, in such amounts and on such Willis as Lender may approve, and Construction Loan Agreement FWS Realty, Ltd. 8 (f) if Lender shall request, furnish Lender with a current list of original contractors and subcontractors performing work on the hnprovements. 3.3 Negative Covenants: At no time during the term of the Loan shall Borrower: (a) use, maintain, operate or occupy, or allow the use, maintenance, operation or occupancy of, any portion of the Property for any purpose which violates any Governmental or Legal Requirement or in any manner which may be dangerous, unless safeguarded as required by law, or which may constitute a public or private nuisance, or which may make void, voidable or cancelable or increase the premium of any insurance then in force with respect thereto, (b) create or place, or permit to be created or placed, or through any act or failure to act, acquiesce in the placing of or allow to iemain any mortgage, lien, pledge, security interest, encumbrance or charge on, or other title retention agreement to (statutory, constitutional or contractual) the Property (or any portion thereof), or (c) lease, exchange assign convey, transfer possession of or otherwise dispose of the Property (or any portion thereof), unless approved in writing by Lender. 3.4 Correction of Defects or Departures: Borrower will, upon demand of Lender, correct any structural defect in the Improvements or any material departure from the Plans not accepted by Lender, it being understood and agreed that the advance of any Loan proceeds shall not constitute a waiver of Lender's right to require compliance with this Section 3 4 with respect to any such defects or departures. 3.5 Borrower's Deposit: If, in the good faith judgment of the Lender, it appears at any time or from time to time that the unadvanced Loan proceeds will be insufficient to complete the Improvements in accordance with the Plans and this Agreement, Borrower shall immediately deposit, or shall make arrangements satisfactory to Lender for the deposit of, with Lender the Borrower s Deposit. The Borrower's Deposit need not be segregated from any of Lender's other funds and shall be paid out by Lender before making any further advances on the Note. Borrower shall be entitled to reduce and draw down the amount of the Borrower's Deposit in an amount equal to any payment or payments made by Borrower for labor, materials and services included in calculating the initial amount of the Borrower's Deposit, with Lender s prior written consent, not to be unreasonably withheld. 3.6 Lender's Inspection Rights• Lender, through its officers, agents or employees, shall have the right at all reasonable times, at Borrower's expense: (a) To enter upon the Property and inspect the work of construction to determine that the same is in conformity with the Plans and all the requirements hereof; and (b) To examine, copy and make extracts of the books, records, accounting data and other documents, including, without limitation, all permits, licenses, consents Construction Loan Agreement FWS Realty, Ltd. 9 and approvals of all goverunental authorities having jurisdiction over Borrower, the Improvements or the Property or Borrower and all contractors and subcontractors supplying goods and/or services in connection with the work of constructing the Improvements. Such books, records and documents shall be made available to Lender promptly upon written demand therefor, and at the request of Lender, Borrower shall furnish Lender with convenient facilities for such purposes. All contracts let or amended by Borrower or its contractors after the date hereof relating to construction of the Improvements shall require agreement to the foregoing inspection rights, except where such rights have been waived by Lender, in writing. (c) It is expressly understood and agreed that Lender shall have no duty to supervise or to inspect the work of construction or any books and records and that any such inspection shall be for the sole purpose of preserving Lender's rights hereunder. Failure to inspect the work or any part thereof shall not constitute a waiver of any of the Lender's rights hereunder. Inspection not followed by notice of default shall not constitute a waiver of any default then existing nor shall it constitute an acknowledgement that there has been or will be compliance with the Plans or that the construction is free from defective materials or workmanship. 3.7 Lender Has No Obligation: Borrower shall be solely responsible for all aspects of Borrower's business and conduct in connection with the Property and Improvements, including, but not limited to: (a) The quality and suitability of the Plans; (b) Supervision of the work of construction; (c) The qualifications, financial condition and performance of all architects, engineers, contractors, subcontractors and material suppliers and consultants; (d) Confoii lance of the work of construction and the Improvements to the requirements of all applicable public and private restrictions and requirements and to the requirements of this Agreement; (e) The quality and suitability of all materials and workmanship; and (f) The accuracy of all requests for the disbursement of Loan proceeds and the proper application of disbursed Loan proceeds. Lender shall have no obligation to supervise, inspect or inform Borrower or any third party of any aspect of the work of construction of the Improvements or any other matter referred to above. Any inspection or review made by Lender shall be made for the purpose of determining whether or not the obligations of Borrower under this Agreement are being properly discharged, and neither Borrower nor any third party shall be entitled to rely upon any such inspection or review. Construction Loan Agreement FWS Realty, Ltd. 10 Lender owes no duty of care to Borrower or any third person to protect against or inform Borrower or any third person of the existence of negligent, faulty, inadequate or defective design or construction of the Improvements. 3.8 Assignment of Construction Contracts: As additional security for the payment of the Loan Borrower hereby transfers and assigns to Lender all of Borrower's rights and interests, but not its obligations in, under and to, the Construction Contracts upon the following terns and conditions: (a) Borrower represents and warrants that the copy of any Construction Contract furnished to Lender is a true and complete copy thereof and that Borrower's interest therein is not subject to any claim, setoff or encumbrance. (b) Neither this assignment nor any action by Lender shall constitute an assumption by Lender of any obligations under the Construction Contract, and Borrower shall continue to be liable for all obligations of Borrower thereunder; Borrower hereby agreeing to perform all of its obligations under the Construction Contract. Borrower agrees to indemnify and hold Lender harmless against and from any loss, cost, liability or expense (including, but not limited to, reasonable attorneys' fees) resulting from any failure of Borrower to so perform (c) Lender shall have the right at any time (but shall have no obligation) to take, in its name or in the name of Borrower, such action as Lender may at any time determine to be necessary or advisable to cure any default under the Construction Contract or to protect the rights of Borrower or Lender thereunder Lender shall incur no liability if any action so taken by it or in its behalf shall prove to be inadequate or invalid, and Borrower agrees to hold Lender free and harmless against and from any loss, cost, liability or expense (including, but not limited to, attorneys' fees) incurred in connection with any such action (d) Borrower hereby irrevocably constitutes and appoints Lender as Borrower s attorney -in -fact, in Borrower's name or in Lender's name, to enforce all rights of Borrower under the Construction Contracts. (e) Prior to any Event of Default, Borrower shall have the right to exercise its rights as owner under the Construction Contracts, provided that Borrower shall not cancel or amend the Construction Contracts or do, or suffer to be done, any act which would impair the security constituted by this assignment without the prior written consent of Lender. (0 This assignment shall inure to the benefit of Lender, its successors and assigns, any receiver in possession of the Property and any corporation formed by or on behalf of Lender which assumes Lender's rights and obligations under this Agreement Construction Loan Agreement FWS Realty, Ltd. 11 3.9 Assignment of Plans: As additional security for the payment of the Loan, Borrower hereby transfers and assigns to Lender all of the Borrower's right, title and interest in and to the Plans and hereby represents and warrants to and agrees with Lender as follows: (a) The schedule of the Plans delivered to Lender is a complete and accurate description of the Plans. (b) The Plans are complete and adequate for the construction of the Improvements, and there have been no modifications thereof except as described in such schedule. The Plans shall not be modified without the prior written consent of Lender, except for non-structural changes which do not change the cost of construction by more than 0.2 percent to any one (1) change or 0.5 percent, in the aggregate. (c) Lender may use the Plans for any purpose relating to the Improvements, including, but not limited to, inspections of construction and the completion of the Improvements. (d) Lender's acceptance of this assignment shall not constitute approval of the Plans by Lender Lender has no liability or obligation whatsoever in connection with the Plans and no responsibility for the adequacy thereof or for the construction of the Improvements contemplated by the Plans. Lender has no duty to inspect the Improvements, and if Lender should inspect the Improvements, Lender shall have no liability or obligation to Borrower arising out of such inspection No such inspection, nor any failure by Lender to make objections after any such inspection, shall constitute a representation by Lender that the Improvements are in accordance with the Plans or constitute a waiver of Lender s right thereafter to insist that the Improvements be constructed in accordance with the Plans. (e) This assignment shall inure to the benefit of Lender, its successors and assigns, including any purchaser upon foreclosure of the Property, any receiver in possession of the Property and any corporation formed by or on behalf of Lender which assumes Lender's rights and obligations under this Agreement 3.10 Environmental: Borrower will not cause or permit the Property or Borrower to be in violation of, or do anything or permit anything to be done which will subject the Property to any remedial obligations under any applicable federal or state environmental laws including without limitation CERCLA, RCRA, the Texas Water Code and the Texas Solid Waste Disposal Act, assuming disclosure to the applicable governrnental authorities of all relevant facts, conditions and circumstances, if any, pertaining to the Property and Borrower, and Borrower will promptly notify Lender in writing of any existing, pending or, to the best knowledge of Borrower, threatened investigation or inquiry by any governnental authority in connection with any applicable enviromnental laws. Borrower shall obtain any permits, licenses or similar authorizations to construct, occupy, operate or use any buildings, improvements, fixtures and equipment forming a part of the Property by reason of any applicable environmental laws. Borrower shall take all steps necessary to determine that no hazardous substances or solid waste are being disposed of or otherwise released on or to the Property. Borrower will not cause or Construction Loan Agreement FWS Realty, Ltd. 12 permit the disposal or other release of any hazardous substance or solid waste on or to the Property and covenants and agrees to keep or cause the Property to be kept free of any hazardous substance or solid waste and to relnediate any violation of any applicable federal, state or local enviromnental regulations of standards, including, if required, removal of any hazardous substance or solid waste (or if removal is prohibited by law to take whatever action is required by law) promptly upon discovery of such violation at its sole expense. Upon Lender's reasonable request, Borrower will provide at Borrower's sole expense an inspection or audit of the Property from an engineering or consulting firn approved by Lender indicating the presence or absence of hazardous substances and solid wastes on the Property. If Borrower fails to provide same after ten (10) days notice, Lender may order same, and Borrower grants to Lender and its agents employees, contractors and consultants access to the Property and a license (which is coupled with an interest and irrevocable) to perform inspections and tests. The cost of such inspections and tests shall be a demand obligation owing by Borrower to Lender and shall be subject to and covered by the provisions of Section 5 1 hereof'. 3.11 Intentionally Deleted. 3.12 Indemnification Regarding Environmental Matters: Borrower agrees to indemnify, defend, and hold Lender (for purposes of this paragraph, the term "Lender" shall include the directors, officers partners, council members, employees and agents of Lender) harmless from and against, and to reimburse Lender and the Trustee with respect to, any and all claims, demands, losses, damages (including consequential damages), liabilities, causes of action, judgments, penalties, costs and expenses (including attorney's fees and court costs) of any and every kind or character, known or unknown, fixed or contingent, imposed on, asserted against or incurred by Lender at any time and from time to time by reason of, in connection with or arising out of (a) the breach of any representation or warranty of Borrower as set forth herein regarding asbestos, material containing asbestos or applicable environmental laws, (b) the failure of Borrower to perfoini any obligation herein required to be performed by Borrower regarding asbestos, material containing asbestos or applicable environmental laws, (c) any violation on or before the Release Date (as hereinafter defined) and after the effective date of this Agreement of any applicable environmental law in effect on or before the Release Date, (d) the removal by or on behalf of Borrower of hazardous substances or solid wastes from the Property (or if removal is prohibited by law, the taking of whatever action is required by law), (e) the removal by or on behalf of Borrower of asbestos or material containing asbestos from the Property (or if removal is prohibited by law, the taking of whatever action is required by law including without limitation the implementation of any required operation and maintenance program), (f) any act, omission, event or circumstance existing or occurring on or prior to the Release Date and after the effective date of this Agreement (including without limitation the presence on the Property or release from the Property of hazardous substances or solid wastes disposed of or otherwise released on or prior to the Release Date and after the effective date of this Agreement), resulting from or in connection with the ownership, construction, occupancy, operation, use and/or maintenance of the Property by Borrower, regardless of whether the act, omission, event or circumstance constituted a violation of any applicable environmental law at the time of its existence or occurrence, and (g) any and all claims or proceeds (whether brought by private party or governmental agency) for bodily injury, property damage, abatement or remediation, environmental damage or impainnent or any other injury or damage resulting from or relating to Construction Loan Agreement FWS Realty, Ltd. 13 any hazardous substance or solid waste located upon or migrating into, from or through the Property after the effective date of this Agreement (whether or not any or all of the foregoing was caused by Borrower or its tenant or subtenant, , or any third party and whether or not the alleged liability is attributable to the handling, storage, generation, transportation or disposal of such substance or waste or the mere presence of such substance or waste on the Property). Without limitation the foregoing indemnities shall apply to each indemnified party with respect to claims, demands, losses, damages (including consequential damages), liabilities, causes of action, judgments, penalties, costs and expenses (including attonrey's fees and court costs) which in part are caused by or arise out of the negligence of such (and/or any other) indemnified party. However, such indemnities shall not apply to any indemnified party to the extent the subject of the indemnification is caused by or arises out of the gross negligence or willful misconduct of such indemnified party or the negligence of such indemnified party, if such negligence is the sole cause of the subject of such indemnification. The ` Release Date" as used herein shall mean the date on which the indebtedness and obligations secured hereby have been paid and perfonned in full; provided, if such payment or perfonnance is challenged, in bankruptcy proceedings or otherwise, the Release Date shall be deemed not to have occurred until such challenge is rejected, dismissed or withdrawn with prejudice. The foregoing indemnities shall not terminate upon the Release Date but will survive the Release Date. Any amount to be paid hereunder by Borrower to Lender shall be a demand obligation owing by Borrower to Lender and shall be subject to and covered by the provisions of Section 5 1 hereof. Nothing in this paragraph or in any other document evidencing, securing or relating to the indebtedness secured hereby shall limit or impair any rights or remedies of Lender against Borrower or any third party under applicable environmental laws, including without limitation any rights of contribution or indemnification available thereunder. 3.13. Employment. Borrower agrees to use commercially reasonable efforts at all times following issuance of a final certificate of occupancy for any Irnprovernents to cause four (4) Full-time Jobs to be provided on the Land (the ` Employment Goal"). Borrower agrees to supply Lender with a written report at least once each year during the tenn of the Note, both at a time and in a form reasonably acceptable to the City, that sets forth the number of Full-time jobs provided on the Land. For purposes of this Agreement ` Full-time Job" means a job held by one individual for at least forty (40) hours per week. If the Employment Goal is not met in any given year, Borrower shall state the reasons Borrower believes the goal was not met and what steps Borrower intends to take in good faith so that the Employment Goal may be met in the following year. Notwithstanding anything to the contrary herein, failure to attain the Employment Goal itself in any given year shall not constitute an event of default under this or any other Loan Document ARTICLE 4 LENDER'S COMMITMENT 4.1 Loan: Subject to the terms, provisions and conditions of this Agreement, Lender will make and Borrower will accept, in installments, a Loan in the aggregate amount of the principal sum of the Note it being understood that interest as called for in the Note shall be calculated only on sums actually advanced and only from the dates of such Advances. Construction Loan Agreement FWS Realty, Ltd. 14 4.2 Advances: Advances shall be made to Borrower on the principal amount of the Note at the times and otherwise in accordance with the Approved Budget. The Loan Advances shall be disbursed, at Lender's option, by Lender's check drawn upon Lender s disbursement account and delivered to Borrower, or by depositing the amount of the disbursement to Borrower's account in a bank approved by Lender, by direct or joint check payment to any and all persons entitled to payment for work performed on or materials delivered to or services performed in connection with the construction of the Improvements or the Loan, or by any other method the Lender shall from time to time elect. Notwithstanding the Approved Budget, the Advance as to which Borrower shall be entitled at any one time shall not exceed the cost of the materials, supplies and equipment purchased for the Improvements and stored on the Land, in a manner acceptable to Lender, plus the cost of all materials, supplies, equipment and labor actually incorporated into the Improvements, plus any other costs and fees which have been approved for payment by Lender and which are then due or will become due within thirty (30) days thereafter, minus the sum of all prior Advances. Under no circumstances shall any portion of any Advance be used for any purpose other than the payment of those costs and fees as Lender shall have approved as legitimately relating to the purchase price of the Land, the cost of development or construction of the Improvements and the payment of the Loan. For each Advance made to Borrower hereunder, and unless the Approved Budget provides otherwise, Lender shall retain a sum equal to ten percent (10%) thereof (or a greater percentage, if required by any Governrnental Requirement) so that until a period of thirty (30) days after completion of the Improvements (or such longer period, if required by any Governmental Requirement or if, during such longer period, a lien or claim could lawfully be filed against the Property by anyone perfonning work or services or furnishing materials or goods during the development or construction of the Improvements) Lender shall have in its possession a fund equal to ten percent (10%) of the total cost or value of the Improvements. 4.3 First Advance: Lender shall not be obligated to make the first Advance to Borrower unless and until: (a) Plans Construction Contracts, Architect's Certificate, Survey and Insurance Policies: Lender has received copies of: (i) the Plans and all Construction Contracts executed to date; (ii) a certificate from the Architect that the Plans have been approved by him or them and that the Construction Contracts are acceptable to him or them and satisfactorily provide for the development and construction of the Improvements; (iii) all authorizations and perurits which are presently procurable and required by any Legal Requirement for the development and construction and proposed use of the Improvements; and (iv) the policies or certificates of insurance required by the Loan Documents, accompanied by evidence of the payment of the premiums therefor. Construction Loan Agreement FWS Realty, Ltd. 15 (b) Loan Documents• The Loan Documents have been duly authorized and executed in accordance with applicable Legal Requirements and original counterparts thereof delivered to Lender, all prior to the commencement of development and construction of the Improvements, the placing of any materials or supplies on the Land, the making of any Construction Contract (written or oral) for any of the same or the perfonnance of any other act which could give rise to a lien claim equal or superior to the rights created by the Loan Documents. (c) Payment of Fees and Costs: Borrower pays to Lender, or any other person or party entitled thereto, all fees and costs then due and payable with reference to this Agreement and the subject hereof, including Lender's outside attorneys' fees for the negotiation and pieparation of this Agreement, the Note and the Ground Lease. 4.4 Subsequent Advances: Subject to the proviso contained in Section 4.3(a) hereinabove, Lender shall not be obligated to make any subsequent Advance to Borrower unless and until: (a) Application for Advance: Borrower and Architect shall have executed, or caused to be executed, and delivered to Lender an Application for Advance. (b) Architect's Certificate, Lien Waivers, Releases, and Certificates• Lender shall have received (i) certification from the Architect that, in his opinion, the development and construction of the Improvements therefore performed have been in substantial accordance with the Plans, (ii) at the request of Lender, lien waivers or releases from all contractors, subcontractors, laborers and materialmen employed or furnishing materials in connection with the development and construction of the Improvements, and (iii) such other certifications or evidence of cost and completion as Lender may reasonably request. (c) Borrower's Deposit: Borrower shall have satisfied, if then applicable, the provisions of Section 3 5 heremabove. 4.5 Any Advance. Notwithstanding anything to the contrary contained in or inferable from any of the above, Lender shall not be required to make any Advance hereunder if, at the time of the requested advance: (a) Default: Any Event of Default exists hereunder. (b) Advances Exceed Amount of Note: The requested Advance, plus the sum of the previous Advances or other sums disbursed by Lender under the Loan Documents, exceed the face amount of the Note. (c) Failure to Complete Improvements: In the good faith judgment of the Lender, the Improvements will not be completed in substantial accordance with the Plans and the other provisions of this Agreement and the Ground Lease, regardless of the cause of such failure so to complete. Construction Loan Agreement FWS Realty, Ltd. 16 (d) Available Funds Insufficient to Complete: In the good faith judgment of Lender, the sum of the unadvanced Loan proceeds plus other sums being held by Lender in escrow for Borrower are insufficient to complete the Improvements in substantial accordance with the Plans and this Agreement, unless and until the provisions of Section 3.5 hereinabove are satisfied. (e) Destruction of Property: The Property (or any portion thereof) is demolished or substantially destroyed. (f) Conditions of Sections 4.2, 4.3 or 4.4: Borrower is unable to satisfy any of the conditions set forth in Sections 4.2, 4.3 or 4.4 hereinabove. 4.6 Lender's Standing* All conditions precedent to Lender's obligation to make advances hereunder are imposed solely and exclusively for Lender's benefit No person or entity other than Lender shall have any standing to require satisfaction of such conditions or be entitled to assume that Lender will refuse to make advances absent strict compliance therewith, and any or all of such conditions may be freely waived (in whole or in part) by Lender at any time or times. ARTICLE 5 REMEDIES 5.1 Rights, Remedies and Recourses: Upon the happening of any Event of Default, Lender shall have in addition to any and all other rights, remedies and recourses available to it under any of the Loan Documents, including specifically the nght to declare immediately due and payable the advanced principal and accrued interest on the Note, the right (a) to take exclusive possession of the Property, (b) to use any funds of Borrower, including the Borrower's Deposit (if any) and any sums which may remain unadvanced hereunder to complete the Improvements (c) to make such changes in and revisions to the Plans as Lender may deem desirable, (d) to prosecute and defend all actions or proceedings relating to the construction of the Improvements, (e) to pay, settle or compromise all existing bills and claims which are or may be hens against the Property or may be necessary or desirable for the completion of the work or the clearance of title, (f) to execute, in Borrower's name, all applications, certificates and other instruments which may be required by any Construction Contract, (g) to do any and every act with respect to the development and construction of the Improvements which Borrower may do in its own behalf, and (h) to employ such contractor, subcontractors agents, attorneys, engineers, architects, accountants, watchmen and inspectors as Lender may deem desirable to accomplish any of the above purposes. For this purpose, Borrower hereby constitutes and appoints Lender its true and lawful attorney -in -fact with full power of substitution to take any and all of the above described action, which power of attorney shall be deemed to be coupled with an interest and shall be irrevocable. All sums expended by Lender for any of the above purposes shall be deemed to be Advances hereunder and shall be secured by the Loan Documents 5.2 Termination of Lender's Obligations* Upon the happening of any Event of Default, all obligations (if any) of Lender hereunder including specifically any obligation to advance funds hereunder, shall immediately cease and tenninate. Construction Loan Agreement FWS Realty, Ltd. 17 5.3 Acceleration: Notwithstanding anything herein to the contrary contained in or inferable from any provision hereof, upon the happening of an Event of Default the Loan shall immediately become due and payable in full without the necessity of any furthei action on the part of Lender, and Borrower expressly waives any requirement of notice of intention to accelerate or notice of such acceleration of the maturity of the Loan. ARTICLE 6 GENERAL TERMS AND CONDITIONS 6.1 Performance at Borrower's Expense: Any and all reasonable costs and expenses required to satisfy any provision of this Agreement, including, without limitation, attorneys', surveyors', accountants' engineers', architects and inspectors' fees shall be paid by Borrower. No portion of any such costs or expenses shall be, in any way and to any extent, credited against any portion of the Loan. 6.2 Further Assistances: All instruments and policies of insurance to be executed and/or delivered to Lender, and all proceedings to be taken in connection with this Agreement and the Loan provided for herein, and all persons or parties responsible in any way for the construction of the Improvements or any obligation to be performed hereunder, shall be subject to the acceptance of Lender, acting reasonably as to fonn, substance, coverage and identity. Immediately upon request of Lender, Borrower will execute, acknowledge and deliver to Lender such further instruments and do such further acts as Lender may deem necessary to carry out more effectively the purpose of this Agreement or to subject to the liens and security interests of the Loan Documents any property intended by the terms thereof to be covered thereby including specifically, but without limitation, any renewals, additions, substitutions, replacements, betterments or appurtenances to the Property. 6.3 No Waiver: Any failure by Lender to insist, or any election by Lender not to insist, upon Borrower's strict performance of any of the teams, provisions or conditions of the Loan Documents shall not be deemed to be a waiver of same or of any other tern, provision or condition thereof, and Lender shall have the right at any time thereafter to insist upon strict performance by Borrower of any and all of same. specifically, no advance by Lender of any Loan proceeds hereunder, absent Borrower's strict compliance with Article 4 hereinabove, shall in any way preclude Lender from thereafter declaring such failure to comply to be an Event of Default hereunder. 6.4 Modification• This Agreement may not be amended, waived, discharged or terminated orally, but only by an instrument executed by the party against whom enforcement of the amendment, waiver, discharge or termination is sought. 6.5 Applicable Law and Savings Clause: This Agreement has been executed under, and shall be construed and enforced in accordance with, the laws of the State of Texas, except as such laws are preempted by United States federal law. This Agreement and all of the Loan Documents are intended to be performed in accordance with, and only to the extent permitted by, all Applicable Laws and Legal Requirements. If any provision hereof or of any of the other Construction Loan Agreement FWS Realty, Ltd. 18 Loan Documents or the application thereof to any person or circumstance shall, for any reason and to any extent, be invalid or unenforceable neither the application of such provision to any other person or circumstance nor the remainder of the instrument in which such provision is contained shall be affected thereby, but rather, shall be enforced to the greatest extent permitted by law. It is the express intent of Borrower and Lender to at all times comply with the usury and other applicable laws now or hereafter governing the interest payable on the Note or the Loan evidenced thereby. If the applicable law is ever revised, repealed or judicially interpreted so as to render usurious any amount called for under the Note or under any of the Loan Documents, or contracted for, charged, taken, reserved or received with respect to the Loan evidenced by the Note, or if Lender's exercise of the option to accelerate the maturity of the Note, or if any prepayment by Borrower results in Borrower having paid any interest in excess of that permitted by law, then it is the express mtent of Borrower and Lender that all excess amounts theretofore collected by Lender be credited on the principal balance of the Note (or, if the Note and all of such other indebtedness have been paid in full refunded to Borrower), and the provisions of the Note and the Loan Documents immediately be deemed reformed and the amounts thereafter collectable hereunder and thereunder reduced without the necessity of the execution of any new document, so as to comply with the then applicable law but so as to permit the recovery of the fullest amount otherwise called for hereunder or thereunder. All sums paid, or agreed to be paid, by the Borrower for the use, forbearance , detention, taking, charging, receiving or reserving on the indebtedness of Borrower to Lender under the Note or the loan evidenced thereby shall, to the extent permitted by applicable law be amortized, prorated, allocated and spread throughout the full term of such indebtedness until payment in full so that the rate or amount of interest on account of such indebtedness does not exceed the usury ceiling from time to time in effect and applicable to the Loan evidenced by the Note for so long as debt is outstanding under the Loan. To the extent that Lender is relying on Texas law to determine the maximum rate ("Maximum Rate") payable on the Indebtedness, Lender will utilize the indicated rate ceiling from time to time in effect as provided in the Texas Finance Code Chapter 303. To the extent United States federal law permits Lender to contract for, charge or receive a greater amount of interest, Lender will rely on United States federal law instead of such article, for the purpose of determining the Maximum Rate. Additionally, to the extent permitted by applicable law now in effect, Lender may, at its option and from time to time, implement any other method of computing the Maximum Rate under such article, as amended, or under other applicable law by giving notice, if required, to Borrower as provided by applicable law now or hereafter in effect. In no event shall the provisions of Texas Finance Code Chapter 346 (which regulates certain revolving credit loan accounts and revolving triparty accounts) apply to the Loan. Notwithstanding anything to the contrary contained herein or in any of the other Loan Documents, it is not the intention of Lender to accelerate the maturity of any interest that has not accrued at the time of such acceleration or to collect unearned interest at the time of such acceleration. 6.6 Rights, Remedies and Recourses Cumulative: All rights, remedies and recourses afforded Lender in the Loan Documents or otherwise available at law or in equity, including specifically those granted by the Uniform Commercial Code in effect in Texas, (a) shall be deemed cumulative and concurrent, (b) may be pursued separately, successively or concurrently against Borrower, at the sole discretion of Lender, (c) may be exercised as often as the occasion therefor shall arise, it being understood by Borrower that the exercise, failure to exercise or election not to exercise any of the same shall in no event be construed as a waiver of same or of Construction Loan Agreement FWS Realty, Ltd. 19 any other right, remedy or recourse available to Lender, and (d) are intended to be, and shall be, non-exclusive. 6.7 Binding Effect: This Agreement shall be binding upon the parties hereto and their respective heirs, successors, legal representatives and assigns; provided, however, that Borrower may not assign, transfer or in any way hypothecate its interest in the Loan Documents or the Property (or any portion thereof) without Lender's prior written consent. 6.8 Notices: All notices or other communications required or permitted to be given pursuant to the provisions of this Agreement shall be in writing and shall be considered as properly given if mailed by first class United States mail, postage prepaid, registered or certified with return receipt requested, or by delivering same in person to the intended addressee or by prepaid telegram. Notice so mailed shall be effective upon three (3) business days after its deposit. Notice given in any other manner shall be effective only if and when received by the addressee. For purposes of notice, the addresses of the parties shall be as set forth in the opening recital of this Agreement; provided, however, that either party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving of thirty (30) days' notice to the other party in the manner set forth hereinabove. 6.9 Intentionally Deleted. 6.10 Intentionally Deleted. 6.11 Lender's Right to Perform the Obligations' If Borrower shall fail, refuse or neglect to make any payment of perform any act required by the Loan Documents, then Lender, after the expiration of any applicable notice and grace period, at any time thereafter, without notice to or demand upon Borrower and without waiving or releasing any other right, remedy or recourse Lender may have because of same, may make such payment or perform such act for the account of and at the expense of Borrower and shall have the right to enter the Land and Improvements for such purpose and to take all action with respect to the Property as it may deem desirable If Lender shall elect to pay any statement, invoice or tax bill, Lender may do so in reliance on any bill, statement or assessment procured from the appropriate Governmental Authority or company without inquiring into the accuracy or validity thereof. Similarly, in making any payments to protect the security intended to be created by the Loan Documents, Lender shall not be bound to inquire into the validity of any apparent or threatened adverse title, lien, encumbrance, claim or charge before making an advance for the purpose of preventing or removing the same. Borrower shall indemnify Lender for all losses, expenses, damage, claims and causes of action, including reasonable attorneys' fees, incurred or accruing by reason of any acts performed by Lender pursuant to the provisions of this Section 6.11 or by reason of any other provision in the Loan Documents. All sums paid by Lender pursuant to this Section 6.11, and all sums expended by Lender to which it shall be entitled to be indemnified, together with interest thereon at the maximum rate allowed by law from the date of such payment or expenditure, shall constitute advances on and additions to the Loan, shall be secured by the Loan Documents and shall be paid by Borrower to Lender upon demand. Construction Loan Agreement FWS Realty, Ltd. 20 6.12 No Third Party Beneficiary: This Agreement is for the sole benefit of Lender and Borrower and is not for the benefit of any third party. 6.13 Foiin and Substance: All documents, certificates, insurance policies, and other items required under this Agreement to be executed and/or delivered to Lender shall be in form and substance satisfactory to Lender. 6.14 Continuing Liability ' Borrower agrees to develop, construct and complete all of the Improvements pursuant to the Plans and to the satisfaction of all Governmental Authorities. If Borrower does not timely complete the Improvements as set out in the Ground Lease, or if the construction thereof is not satisfactory to Governmental Authorities having jurisdiction thereon, Lender shall have the option to complete the Improvements to the satisfaction of the Governmental Authorities. If Lender elects to construct and complete the Improvements of take such other action as may be necessary to obtain the approval of the Governmental Authorities for the constructions of the Improvements, Borrower promises to pay to Lender, in addition to any other amounts which may be owing under any of the Loan Documents all sums expended by Lender to complete the Improvements to the satisfaction of the Governmental Authorities, and such amounts owing to Lender shall be payable on demand and shall bear interest at the rates provided in the Note. In addition, if Lender shall advance any funds or honor any letter of credit which it may have issued, on behalf of Borrower, to any Governmental Authority to assure completion of the Improvements, Borrower shall pay to lender all amounts advanced by Lender or honored by Lender under such letters of credit, together with interest on such amount at the rates provided in the Note, when requested by Lender. The obligations of Borrower pursuant to this Section 6.14 are continuing obligations of the Borrower notwithstanding that Borrower may have paid the Note in full at the time such obligations may arise. 6.15 Intentionally Deleted. 6.16 APPLICABLE LAW: EXCEPT WHERE FEDERAL LAW IS APPLICABLE (INCLUDING, WITHOUT LIMITATION, ANY FEDERAL USURY CEILING OR OTHER FEDERAL LAW WHICH, FROM TIME TO TIME, IS APPLICABLE TO THE INDEBTEDNESS EVIDENCED BY THE NOTE AND WHICH PREEMPTS STATE USURY LAWS), THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS AND THE LAWS OF THE UNITED STATES APPLICABLE TO TRANSACTIONS IN SUCH STATE Construction Loan Agreement FWS Realty, Ltd. [SIGNATURE PAGES FOLLOW] 21 EXECUTED AND DELIVERED as of the date first recited. `2_1;3bck Contract Authorizatioa lb. \let aims ratite BORROWER: FWS REALTY LTD., A Texas limited partnership By: Harrison Realty Investments, LLC, A Texas limited liability company Its general partner By: / %L/V Naive: Haydn C%tler, Jr. Title: President Construction Loan Agreement FWS Realty, Ltd. - LENDER: THE CITY OF FORT WORTH, A home rule municipal corporation organized under the laws of the State of Texas By: Name: Fernando Costa Title: Assistant City Manager APPROVED AS TO FORM AND LEGALITY: By: l � Charlene Sanders, Assistant City Attorney City Secretary acee.t.tatstiats Ott9101" � �k�ht�io`�� a�ae OFFICIAL RORD CITY SECRETARY Ft WORTHS ADVANCE PROMISSORY NOTE (FIXED RATE) (this "Note") NAME AND ADDRESS OF BORROWER ("Borrower") FWS REALTY, LTD., a Texas limited partnership 3 825 Camp Bowie Boulevard Fort Worth, Texas 76107 U.S. $600,000.00 alt44401 , 2012 (the "Date") FOR VALUE RECEIVED, Borrower promises to pay to the order of the CITY OF FORT WORTH, a home rule municipal corporation organized under the laws of the State of Texas ("Lender") on or before the tenth anniversary of the Initial Payment Date (as defined below) (the "Maturity Date"), at its address of 4201 North Main Street, Suite 200, Fort Worth, Texas 76106-2749, or at such other location as Lender may designate, in immediately available funds, Six Hundred Thousand and no/100 UNITED STATES DOLLARS (U.S. $600,000.00) (the "Maximum Amount of Note") or the aggregate unpaid amount of all advances hereunder, whichever is less. Borrower will also pay interest on the unpaid principal balance outstanding from time to time at a rate per annum equal to the interest rate on 10-year United States Treasury Notes in effect on the date hereof plus one percent (1%) (the "Stated Rate"). Each advance must be at least TEN THOUSAND UNITED STATES DOLLARS (U.S.$10,000.00) unless the amount available for borrowing under this Note is less. This Note shall be payable in accordance with the attached Exhibit "A", "Loan and Payment Schedule" including 1 20 equal monthly installments of Three Thousand Three Hundred Fifteen and 5 8/ 100 Dollars ($3,315.58) principal and interest, amortized over twenty years, beginning on the first day of the month following the Occupancy Date (as such term is defined in that certain Fort Worth Spinks Airport Ground Lease Agreement with Mandatory Improvements (Lease Site NW-3) dated of even date herewith by and between Borrower and Lender (the "Ground Lease") (the "Initial Payment Date"), and continuing on the first day of each month thereafter until the tenth anniversary of the Occupancy Date when the remaining balance will be recalculated with the interest rate reset at a rate per annum equal to the interest rate on 10-year United States Treasury Notes in effect on the tenth anniversary date plus one percent (1%) and a new "Loan and Payment Schedule" will be created for the remaining 120 equal monthly installments of principal and interest, amortized over ten years until the twentieth anniversary of the Occupancy Date (the "Maturity Date"), when all unpaid principal and accrued and unpaid interest is finally due and payable. Interest on this Note is computed on a 3 65/3 66 day year. All past -due principal and interest on this Note will bear interest at a rate per annum equal to 18%. In addition to all principal and accrued interest on this Note, Borrower agrees to pay: (a) all reasonable costs and expenses incurred by Lender in collecting this Note through reorganization, bankruptcy or any other proceeding; and (b) reasonable attorneys' fees if and when this Note is placed in the hands of attorneys for collection. Borrower and Lender intend to conform strictly to applicable usury laws. Therefore, the total amount of interest (as defined under applicable law) contracted for, charged or collected under this Note will never exceed the highest lawful rate. If Lender contracts for, charges or receives any excess interest, it will be deemed a mistake. Lender will automatically reform the contract or charge to conform to applicable law, and if excess interest has been received, Lender will either refund the excess to Borrower or credit the excess on the unpaid principal amount of this Note. All amounts constituting interest will be spread throughout the full term of this Note in determining whether interest exceeds lawful amounts. Page 1 1279759_2 The unpaid principal balance of this Note at any time will be the total amounts advanced by Lender under the terms of a Construction Loan Agreement between Borrower and Lender of even date herewith, less the amount of all payments of principal. Absent manifest error, the records of Lender will be conclusive as to amounts owed Subject to the terms and conditions of this Note and the Loan Documents, Borrower may use all or any part of the credit provided for herein at any time before the maturity of this Note and may borrow and repay but not reborrow. There is no limitation on the number of advances made so long as the total amount advanced does not exceed the Maximum Amount of this Note. Borrower may at any time pay all or any part of this Note without the payment of any premium or fee. All payments may, at Bank's sole option, be applied to accrued interest, to principal, or to both. "Loan Document" means this Note, the Construction Loan Agreement, and any document or instrument evidencing, securing, guaranteeing or given in connection with this Note. "Obligations" means all principal, interest and other amounts which are or become owing under this Note or any other Loan Document. "Obligor" means Borrower and any guarantor, surety, co-signer, general partner or other person who may now or hereafter be obligated to pay all or any part of the Obligations Where appropriate, the masculine gender includes the feminine and the neuter and the singular number includes the plural number. Each of the following events or conditions is an "Event of Default:' (1) any Obligor fails to pay any of the Obligations when due and such failure continues for more than ten (10) days after written notice thereof shall have been given by Lender to Obligor; provided, however, Lender is not obligated to provide more than three (3) such notices during any twelve (12) month period; (2) any material warranty, representation or statement now or hereafter contained in or made in connection with any Loan Document was knowingly false or misleading when made; (3) any Obligor violates any covenant condition or agreement contained in any Loan Document; (4) any Obligor fails or refuses to submit fmancial information reasonably requested by Lender or to permit Lender to inspect its books and records on request; (5) any event of default occurs under any other Loan Document; (6) any Obligor dissolves; (7) a receiver, conservator or similar official is appointed for any Obligor or any Obligor's assets (8) any petition is filed by or against any Obligor under any bankruptcy, insolvency or similar law; (9) any Obligor makes an assignment for the benefit of creditors (10) a final judgment is entered against any Obligor and remains unsatisfied for 30 days after entry or any property of any Obligor is attached, garnished or otherwise made subject to legal process; (11) any material adverse change occurs in the business, assets, affairs or fmancial condition of any Obligor; or (12) Borrower is in default of any other obligation to or any other agreement with Lender specifically including but not limited to the Ground Lease. If any Event of Default occurs then Lender may do any or all of the following: (i) cease making advances hereunder; (ii) declare the Obligations to be immediately due and payable without notice of acceleration or of intention to accelerate, presentment and demand or protest or notice of any kind, all of which are hereby expressly waived; (iii) set off, in any order against the Obligations any debt owing by Lender to any Obligor; or (iv) exercise any and all other rights under any Loan Document, at law, in equity or otherwise, or (v) terminate the Borrower's nghts as lessee under the Ground Lease No waiver of any default is a waiver of any other default Lender's delay in exercising any right or power under any Loan Document is not a waiver of such right or power. Each Obligor severally waives notice, demand, presentment for payment, notice of nonpayment, notice of intent to accelerate, notice of acceleration, protest notice of protest, and the filing of suit and diligence in collecting this Note and all other demands and notices, and consents and agrees that its liabilities and obligations will not be released or discharged by any or all of the following, whether with or without notice to it or any other Obligor, and whether before or after the stated maturity hereof: (i) extensions of the time of payment; (ii) renewals; (iii) acceptances of partial payments; (iv) releases or substitutions of any collateral or any Obligor; or (v) failure, if any, to perfect or maintain perfection of any security interest or lien in any collateral Each Obligor agrees that acceptance of any partial payment will not constitute a waiver and that waiver of any default will not constitute waiver of any prior or subsequent default. Borrower represents and agrees that all advances evidenced by this Note are and will be for business, commercial, investment, agricultural or other similar purpose and not primarily for personal, family, or Page 2 1279759_2 household use and no advances will be used for the purpose of purchasing or carrying any margin stock as that term is defined in Regulation U of the Board of Governors of the Federal Reserve System (the "Board"). Texas Finance Code Chapter 346 shall not apply to this Note or to any advance evidenced by this Note. This Note is governed by Texas law. If any provision of this Note is illegal or unenforceable, that illegality or unenforceability will not affect the remaining provisions of this Note BORROWER AND LENDER AGREE THAT THIS NOTE WILL BE PERFORMED IN TARRANT COUNTY, TEXAS, AND THAT SUCH COUNTY IS PROPER VENUE FOR ANY ACTION OR PROCEEDING BROUGHT BY BORROWER OR LENDER, WHETHER IN CONTRACT, TORT, OR OTHERWISE ANY ACTION OR PROCEEDING AGAINST BORROWER MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT IN SUCH COUNTY TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW. TO THE EXTENT PERMITTED BY APPLICABLE LAW BORROWER HEREBY IRREVOCABLY (A) SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS, AND (B) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT OR THAT ANY SUCH COURT IS AN INCONVENIENT FORUM. BORROWER AGREES THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, AT ITS ADDRESS SPECIFIED ABOVE, OR AT SUCH ADDRESS WITHIN THE CONTINENTAL UNITED STATES BY THE GIVING OF THIRTY (30) DAYS' NOTICE OF SUCH CHANGE . LENDER MAY SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW AND MAY BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR WITH RESPECT TO ANY OF ITS PROPERTY IN COURTS IN OTHER PROPER JURISDICTIONS OR VENUES For purposes of this Note, any assignee or subsequent holder of this Note will be considered "Lender," and any successor to Borrower will be considered °°Borrower ' Borrower represents that it is duly organized and validly existing and in good standing under the laws of the state of its incorporation or organization; has full power to own its properties and to carry on its business as now conducted; is duly qualified to do business and is in good standing in each jurisdiction in which the nature of the business conducted by it makes such qualification desirable; and has not commenced any dissolution proceedings. Borrower agrees that Lender is not required to comply with Section 3.05(d) of the Texas Revised Partnership Act and agrees that Lender may proceed directly against one or more partners or their property without first seeking satisfaction from partnership property. Borrower represents that if it conducts business under an assumed business or professional name it has properly filed Assumed Name Certificate(s) in the office(s) required by Chapter 36 of the Texas Business and Commerce Code. The person signing below as Borrower represents that he has full requisite power and authority to execute and deliver this Note to Lender on behalf of the party for whom he signs and to bind such party to the telins and conditions of this Note and that this Note is enforceable against such party JURY TRIAL WAIVER. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, BORROWER AND LENDER HEREBY KNOWINGLY VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THAT BORROWER OR LENDER MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY IN CONNECTION WITH THIS NOTE OR THE OBLIGATIONS. BORROWER REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT LENDER WILL NOT, IN THE EVENT OF LITIGATION SEEK TO ENFORCE THIS RIGHT TO JURY TRIAL WAIVER. BORROWER ACKNOWLEDGES THAT LENDER HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS WAIVER. NO COURSE OF DEALING BETWEEN BORROWER AND LENDER, NO COURSE OF PERFORMANCE NO TRADE PRACTICES AND NO EXTRINSIC EVIDENCE OF ANY NATURE MAY BE USED TO CONTRADICT OR MODIFY ANY TERM OF THIS NOTE OR ANY OTHER LOAN DOCUMENT. Page 3 1279759_2 THIS NOTE AND THE OTHER WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN BORROWER AND LENDER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. IN WITNESS WHEREOF, Borrower has executed this Note effective as of the Date. BORROWER: FWS REALTY, LTD., A Texas limited partnership By: Harrison Realty Investments, LLC, A Texas limited liability company, its general partner By: di/ Name: Hays n Cutler, Jr. Title: President Page 4 OFFICIAL RECORD CITY SECRETARY I, '�'�.1279759_2 Fit WORTH, Exhibit "A" Loan principal amount Annual interest rate* Loan period in years Amortization period in years Base year of loan** Base month of loan Year Year 1 rst-x2 Me Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 'Yearly *hod Beginning Year Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10*** Balance -- $577,671 $554,672 $530,984. $506,585. $481,454. $455,568. $428,907. $401,445. $373,159. Loan and Payment Schedule -- FWS Realty Ltd. ginning Balance $600,000 $598,164 $596,324 $594,479 $592,630 $590,776 $588,918. $587,055. $585,187. $583,315. $581,439. $579,557. . 00 .42 . 31 . 66 .46 . 70 - 37 46 95 83 10 74 $600 000.00 2.960% 10 20 Year 1 Month 1 Payment $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 $3,315.58 nil Payment . 74 $39,786.96 . 73 $39,786.96 43 $39,786.96 36 - - $39,786.96 20 $39,786.96 98 $39,786.96 08 $39,786.96 19 - _ $39,786.96 31 - $39,786.96 Prindpal $22,999.01 $23,688.30 $24,399.07 $25,131.16 $25,885.22 $26,661.90 _ $27,461.89 $28,285.88 $29,134.59 Principal - - $1,835.58 $1,840.11 $1,844.65 $1,849.20 $1,853.76 $1,858.33 $1,862.91 $1,867.51 $1,872.12 $1,876.73 $1,881.36 $1,886.00 Interest $16,787.95 $16,098.66 $15,387.89 $14,655.80 $13,901,74 $13,125.06 $12,325.07 $11,501.08- $10,652.37 Annual loan payments Monthly payments Interest in first calendar year Interest over Initial 10-year term Remaining Principal after Initial 10-year term* ** Sum of all payments thru Year 10 Interest $1,480.00 $1,475.47 $1,470,93 $1,466.38 $1,461.82 $1,457.25 $1,452.67 $1,448.07 $1,443,46 $1,438.85 $1,434.22 $1,429.58 Cumulative Principal $45,327,27 $69,015.57 $93,414,64 $118,545.80 $144,431.02 $171,092.92 $198,554.81 $226,840.69 $255,975.28 Cumulative Principal $1,835 $3,675 $5,520 $7,369 $9,223. $11,081. $12,944. $14,812. $16,684.17 $18,560.90 $20,442.26 $22,328.26 - - - -- Cumulative Interest .58 - $1,480. . 69 _- . 34 . 54 30 54 05 Cumulative Interest $34,246 $50,345 $65,733 $80,389. $94,290. $107,415. $119,740. $131,241. $141,894. $2,955. $4,426. $5,892. $7,354. $8,811. $10,264. $11,712. $3,315.58 $17,458170 $141,894.32 $344,024.72 $397,869.60 Ending Balance 00 $598,164.42 47 -- $596,324.31 40 $594,479.66 78 $592,630.46 60 $590,776.70 85 $588,918.37 52 $587,055.46 59 - $585,187.95 $13,156.05 $14,594.90 $16,029.12 $17,458.70 Ending Balance .65 $554,672.73 . 31 $530,984.43 . 20 $506,585.36 00 $481,454.20 74 $455,568.98 80 $428,907.08 87_ $401,445.19 95--$373,159.31 32 - $344,024.72 ***As per the Advance Promissory Note, the remaining balance will be recalculated with the interest rate reset at a rate per annum equal to the interest rate on 10-year United States Treasury Notes in effect on the tenth anniversary plus one percent (1%) and a new 'Loan and Payment Schedule" will be created for the remaining 120 equal monthly installments of principal and interest, amortized over ten years until the twentieth anniversary of the Occupancy Date, when all unpaid principal and accrued and - unpaid interest is finally due and payable._ *Estimated Interest Rate **Estimated Start Date $583,315.83 $581,439.10 $579,557.74 $577,671.74 City of Fort Worth, Texas a or an • ouncil o unication COUNCIL ACTION: Approved on 1/10/2012 - Ordinance Nos 20037-01-2012 & 20038-01- 2012 and Resolution No. 4056-01-2012 DATE: Tuesday, January 10, 2012 LOG NAME: 55FWS NWTHREE SUBJECT: REFERENCE NO.: **C-25389 Authorize Execution of a Ground Lease Agreement with Mandatory Improvements with FWS Realty, Ltd., for 17,600 Square Feet of Ground Space Known as Lease Site NW-3, a Right of First Refusal on 31,327 Square Feet of Ground Space Known as Option D, a Construction Loan Agreement and Advance Promissory Note in the Amount of $600,000.00 at Fort Worth Spinks Airport, Adopt Appropriation Ordinances and Adopt Resolution Related to Payment of Associated Legal Fees (COUNCIL DISTRICT 8) RECOMMENDATION. It is recommended that the City Council: 1. Authorize execution of a Ground Lease Agreement with Mandatory Improvements with FWS Realty, Ltd., for 17,600 square feet of ground space known as Lease Site NW-3; 2. Authorize execution of a Right of First Refusal on 31,327 square feet of ground space known as Option D at Fort Worth Spinks Airport 3. Authorize execution of a Construction Loan Agreement and Advance Promissory Note in the amount of $600,000.00 to stimulate and encourage business development on Lease Site NW-3; 4. Authorize use of revenue derived from mineral leases on City -owned airports in the amount of $600,000.00 for the construction loan to FWS Realty, Ltd; 5. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $600,000.00 in the Airports Gas Lease Project Fund from available funds; 6. Authorize transfer of funds from the Airports Gas Lease Project Fund to the Municipal Airports Fund in the amount of $600,000.00; 7. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Municipal Airports Fund in the amount of $606,082.61, from available funds; and 8. Adopt the attached Resoltuion increasing the maximum amount by $6,082.61 to be paid to the law firm of Kelly, Hart & Hallman, P.C., for legal services related to the Loan Agreement and Promissory Note which a portion of the costs are subject to reimbursement by FWS Realty, Ltd. under the proposed Ground Lease Agreement. DISCUSSION: Staff has received a request from FWS Realty, Ltd., to lease approximately 17,600 square feet of ground Logname. 55FWS NWTHREE Page 1 of 3 space on the west side of Spinks Airport to construct a 14,000 square foot hangar. FWS Realty, Ltd. has also requested a Right of First Refusal (ROFR) on 31,327 square feet of ground space for future hangar development. To aid in the development of the mandatory improvements and as an economic incentive to stimulate and encourage business development on Lease Site NW-3, FWS Realty, Ltd., has been offered and has accepted a construction loan in the amount of $600,000 00. As recommended by the City's 2010 Comprehensive Plan, adopted by the City Council pursuant to Ordinance No. 19044-02-2010 and in accordance with Resolution No. 3716-03-2009, the City has established an economic development Program pursuant to which the City will on a case -by -case basis, offer economic development incentives authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants of public money to businesses and entities that the City determines will promote state or local economic development and stimulate business and commercial activity in the City in return for verifiable commitments from such businesses or entities. By the terms identified in the Advance Promissory Note, the interest rate will be the current 10 year U.S. Treasury Bill rate plus 1 percent and will reset every 10 years. The loan will be repaid using an amortization schedule of 20 years with payments of principal and interest made in equal monthly amounts. The loan repayment schedule will begin on the first day of the month following the Occupancy Date. Construction of the 14,000 square foot hangar shall begin within six months following the later of (a) receipt of written Federal Aviation Administration (FAA) Airspace Study approval on the design of same, (b) receipt of the City of Fort Worth Aviation Department s approval of plans as set forth in the lease and (c) issuance of a building permit with the completion and issuance of the Certificate of Occupancy to be no later than 12 months after construction commences. Rental rates are to begin on the date the first certificate of occupancy is issued. The initial term for Lease Site NW-3 and the ROFR shall commence on the date of its execution and expire on September 1, 2041, with two five-year options to renew. At a ground rate of $0.27 per square foot per year Lease Site NW-3 will generate estimated revenue of $4,752.00 per year or $396.00 per month. At a rate of $0.01 per square foot per year, the ROFR will generate estimated revenue of $313.27 per year or $26.11 per month. Rental rates shall be subject to an increase on October 1 of any given year to reflect the upward percentage change, if any, in the Consumer Price Index for the period since the last adjustment as described in the Schedule of Rates and Charges in effect at the time. All Agreement terms will be in accordance with established City and Aviation Department policies. By adoption of M&C G-16923 and Resolution No. 3882-05-2010, the City Council approved Andrew J. Rogers and the law firm Kelly, Hart and Hallman as legal counsel to assist the City of Fort Worth in drafting the necessary commercial construction loan documentation and authorized payment to Andrew J. Rogers and the law firm Kelly, Hart and Hallman for their services in an amount not to exceed $10,000.00. To date, Andrew J Rogers and the law firm Kelly, Hart and Hallman have billed the City $16,082.61 for their services and have been paid that amount. This action both approves the increase of the maximum amount to be paid and ratifies the payment of $6,082.61. The Ground Lease Agreement provides for partial reimbursement by FWS Realty, Ltd., of reasonable outside counsel fees, in an amount up to $12,500.00 related to the preparation and negotiation of the NW3 and related leases and the Chapter 380 Construction Loan Agreement and Advance Promissory Note. The property is located in COUNCIL DISTRICT 8. FISCAL INFORMATION / CERTIFICATION: Logname. 55FWS NWTHREE Page 2 of 3 adoption of the attached appropriation ordinances, funds will be available in the current capital budget, as appropriated, of the Airports Gas Lease Project Fund. The Aviation Department is responsible for the collection and deposit of funds due to the City. FUND CENTERS: TO Fund/Account/Centers 1)PE40 491052 0551201 2) PE40 491472 0551201 5)P240 446200 551929990100 5)P240 538040 551929990100 6)PE40 476240 0551002 7) PE40 539120 0551002 7) PE40 476240 0551002 $4, 752.00 $313.27 $600.000.00 $600.000.00 $600.000.00 $600.000.00 $600.000.00 CERTIFICATIONS: Submitted for City Manager's Office bv: Originating Department Head: Additional Information Contact: FROM Fund/Account/Centers 7) P240 7) PE40 9) PE40 538040 551929990100 539120 0551002 539120 0551201 Fernando Costa (6122) Kent Penney (5403) Jonnie Huitt (5409) ATTACHMENTS 1. 055FWS NWTHREE AVAIL FUNDS INQUIRY.rdf (CFW Internal) 2. 55FWS NWTHREE A012 REVISED (clean).doc (Public) 3. 55FWS NWTHREE PE40 REVISED A012 (clean) doc (Public) 4. Rogers Amend Resolution.doc (Public) $600,000.00 $600.000.00 $6.082.61 Logname: 55FWS NWTHREE Page 3 of 3