HomeMy WebLinkAboutContract 55862Secretary Contract # 55862
CONTRACT OF SALE AND PURCHASE
(Sale by City of Fort Worth of Lake Worth Leased Lot)
THIS CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into
by and between the CITY OF FORT WORTH, TEXAS, a Texas home rule municipal corporation,
acting by and through its duly authorized City Manager or Assistant City Manager ("Seller") and
Kevin B. James and Rebecca M. James ("Purchaser") as of March 25, 2021 ("Effective Date").
RECITALS
Seller is the owner of the real property only (exclusive of improvements) located at 7364
Love Circle (the Propeifiy"), as shown and more pat�ticularly descz-ibed on the attached
Exhibit "A", incotporated herein far all purposes.
2. Seller and Purchaser (as successor-in-interest to original lessee) are parties to a ground
lease for the Property dated February 1, 1982, as amended by a lease amendment dated
Janualy 19, 2021 (collectively, the "Lease Agreement").
3. The Lease Agreement provides Purchaser with an option to purchase ("Option"), pursuant
io Section 272.001(h) of the Local Government Code, and by execution of this Contract,
Purchaser hereby exercises the Option.
AGREEMENT
In consideration of the mutual covenants, representations, wat7anties and agreements
contained herein, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, Seller and Purchaser agree as follows:
Section 1. A�reement of Sale and Purchase.
(a) Seller agrees to sell and convey the Property ta 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 Cont�act.
(b} Seller shall convey the Properiy to Purchaser AS-IS, as set forth in Section 5.
(c) In Seller's conveyance of the Property to Purchaser, the following rights and
interests shall be r•eserved to Seller (or have previously been reserved by Seller's predecessor in
title), and such reseivation is hereby approved for all putposes: all right, title, and interest in and
to all oil, gas, and other minerals in and under the Property, if any.
(d) An avigation easement is reserved on behalf of the public for free and unobstructed
passage of airci•aft over the subject property in the navigable airspace above the minimum altitudes
of flight prescribed by federal regulations, including airspace needed to ensure safety in the takeoff
and landing of aircraft. Purchaser hereby releases Seller, its officers, agents and employees from
Purchase Contract 7364 Love Cir OFFICIAL REC�RD
CITY SECRETARY
FT. WORTH, TX
any and all claim and liability resulting from the noise, vibration, fumes, dust fuel, electromagnetic
interference and lubricant particles and all other effects, whether such claims are for injury or death
to person or persons or damages to or talcing of property, arising out of or in connection with the
use of this easement, when such use is in compliance with the regulations and guidelines of the
Federal Aviation Administration, successor agency, or other governmental authority with
jurisdiction over the matter.
(e) Seller shall retain the following easements and any easements retained by Seller
will be at no cost to Seller: all existing easements, whether of record or not, known or unknown.
(�} Pursuant to City of Fort Worth Code of Ordinances Section 35-3, Purchaser agrees
to connect to watex and sanitaiy sewer lines if available priar to Closing, or, if not available prior
to Closing, as soon as practicable after such lines are made available. This requirements shall
survive Closing. -
Section 2. Purchase Price.
The purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller in
cash at Closing (deiined below), is One Hundred Sixty Thousand and 00/100 dollars ($160,000).
Section 272.001(h) of the Local Government Code requires the Property to be sold for fair market
value of the land as determined by a certi�ed appraiser, and pursuant to an appraisal obtained by
Alamo Title Insurance for Kevin and Rebecca James, dated February 23, 2021, Seller has
determined that the Purchase Price reflects the current fair market value of the Property.
Section 3. Title Commitment and Survev.
(a) Within fifteen (15) days after the Effective Date, Purchaser shall obtain at
Ptu�chaser's sole cost and expense (i) a Commitment for Title Insurance and Title Policy ("Title
Commitment") from the Title Company of Purchaser's choice ("Title Company"), setting forth the
status of the title of the Property and showing all liens, claims, easements, rights-of-way,
reservations, restrictions, encroachments, tenancies, and any ather encumbrances (collectively, the
"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,
reshictions, and easements.
(b} Within twenty-five (25) days after the Effeciive Date, Purchaser may obtain, at
Purchaser's sole cost and expense, an updated survey ("Survey") consisting of a plat and field
notes describing the Property, prepared pursuant to a current on-the-ground staked survey
perfotmed by a registered public surveyor or engineer satisfactory to Purchaser and Title
Company. The Suivey shall (i) be certi�ed 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 mimber 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 requires a legal desci-iption of the Properly.
Purchase Contrac[ 7364 Love Cir
pg. 2
(c) If the Title Commitment or Survey discloses any Encumbrances or other matters
that are not acceptable to Purchaser in Purchaser's sole discretion, then Purchaser shall give Seller
written notice thereof within five (5) days after receipt of the Title Commitment, Survey and all
documents referred to in the Title Commitment, specifying Purchaser's objections ("Objections"),
if any. If Pzu•chaser gives such notice to Seller, Seller may cure the Objections, but shall be under
no obligation to do so.
(d} If Purchaser gives notice of Objections and Seiler 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 five (5} day period following receipt of the
notice fram Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this
Con�raci 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 deimed below), and, upon such
termination, neither party hereto shall have any further rights or obligations; or (ii) to waive the
Objections and consuinmate 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 deternuned 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.
PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT
PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 3(d) OR ANY OTHER
TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE UNDER THE
LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO
THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE LEASE
AGREEMENT.
Section 4. Review Reports. DELETED BY AGREEMENT OF THE PARTIES.
Section 5. Representations, Warranties, "AS IS"
(a) EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, PURCHASER
ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT
MAKE AND SPECIFTCALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF
ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED,
ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS, TO CONCERNING OR
WITH RE5PECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE
PROPERTY INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND
GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE
SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES
WHICH PURCHASER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR
BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES
OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR
BODY, (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY,
PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY,
(F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF
Purchase Contract 7364 Love Cir
pg. 3
ANY, INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY,
STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY, OR (H) ANY OTHER
MATTER WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT
SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS REGARDING COMPLIANCE WITH ANY ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS,
ORDERS OF REQUIREMENTS, INCLUDING SOLID WASTE, AS DEFINED BY THE
U. S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R.,
PART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY, OF ANY
HAZARDOUS SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980, AS
AMENDED, AND REGULATIONS PROMULGATED THEREUNDER. PURCHASER
FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE
OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER IS RELYING SOLELY
ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. AS A MATERIAL
PART OF THE CONSIDERATION FOR THI5 AGREEMENT, SELLER AND
PURCHASER AGREE THAT PURCHASER IS TAKING THE PROPERTY "AS IS"
WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS NO
WARRANTY BY SELLER THAT THE PROPERTY IS FIT FOR A PARTICULAR
PURPOSE. PURCHASER ACKNOWLEDGES THAT IT IS NOT RELYING UPON ANY
REPRESENTATIONS, STATEMENTS, ASSERTIONS OR NON-ASSERTIONS BY THE
SELLE�2 WITH RESPECT TO THE PROPERTY COND'ITION, BUT IS RELYING
SOLELY UPON ITS EXAMINATION OF THE PROPERTY. PURCHASER TAKES THE
PROPERTY UNDER THE EXPRESS UNDERSTANDING THERE ARE NO EXPRESS
OR IMPLIED WARRANTIES (EXCEPT FOR LINIITED WARRANTIES OF TITLE SET
FORTH IN THE CLOSING DOCUMENTS). UPON CONVEYANCE, AS BETWEEN
SELLER AND PURCHASER, THE RISK OF LIABILITY OR EXPENSE FOR
ENVIRONMENTAL PROBLEMS AFFECTING THE PROPERTY, EVEN IF ARISING
FROM EVENTS BEFORE CLOSING, WILL BE THE SOLE RESPONSIBILITY OF
PURCHASER, REGARDLESS OF WHETHER THE ENVIRONMENTAL PROBLEMS
WERE KNOWN OR UNKNOWN AT CLOSING. ONCE CLOSING HAS OCCURRED,
PURCHASER INDEMNIFIES, HOLDS HARMLESS AND RELEASES SELLER FROM
LIABILITY FOR ENVIRONMENTAL PROBLEMS AFFECTING THE PROPERTY,
INCLUDING, BUT NOT LIMITED TO, UNDER THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT
("CERCLA"), THE RESOURCE CONSERVATION AND RECOVERY ACT (RCRA),
THE TEXAS SOLID WASTE DISPOSAL ACT OR THE TEXAS WATER CODE.
PURCHASER INDEMNIFIES, HOLDS HARlVII�ESS AND RELEASES SELLER FROM
ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS
AFFECTING THE PROPERTY ARISING AS THE RESULT OF SELLER'S OWN
NEGLIGENCE OR THE NEGLIGENCE OF SELLER'S REPRESENTATIVES, BUT
NOT ANY WILLFUL ACTS OR OMISSIONS OR GROSS NEGLIGENCE OF SELLER
OR SELLER'S REPRESENTATIVES. PURCHASER INDEMNIFIES, HOLDS
HARMLESS AND RELEASE5 SELLER FROM ANY LIABILITY FOR
ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY
Purchase Contract 7364 Love Cir
pg. 4
ARISING AS A RESULT OF THEORIES OF PRODUCTS LIABILITY AND STRICT
LIABILITY, OR UNDER NEW LAWS OR CHANGES TO EXISTING LAWS ENACTED
AFTER CONVEYANCE DATE THAT WOULD OTHERWISE IMPOSE ON SELLER IN
THIS TYPE OF TRANSACTION NEW LIABILITIES FOR ENVIRONMENTAL
PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY. PROVISIONS OF THIS
SECTION SHALL SURVIVE THE CLOSING. IT IS UNDERSTOOD AND AGREED
THAT THE PURCHASE PRICE HAS BEEN ADJUSTED BY PRIOR NEGOTIATION TO
REFLECT THAT ALL OF THE PROPERTY IS SOLD BY SELLER AND PURCHASED
BY PURCHASER SUBJECT TO THE FOREGOING. PURCHASER ACKNOWLEDGES
AND ACCEPTS ALL THE TERMS AND PROVISIONS BY HIS ACCEPTANCE
HEREOF.
b. The provisions of Section 5(a) shall be incorporated into the Deed.
c. The provisions of Section 5(a) shall survive the Closing.
Section b. Option Period. DELETED BY AGREEMENT OF THE PARTIES
Section 7. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right to
make inspections, surveys, test borings, soil analyses, and other tests, studies and surveys,
including without limitation, environmental and engineering tests, borings, analyses, site
assessments, and studies ("Tests). Any 'Tests shall be conducted at Purchaser's sole risk and
expense, and PURCHASER AGREES TO INDEMNIFY AND DEFEND SELLER AND THE
PROPERTY FROM ANY LIENS AND CLAIM5 RESULTING FROM SUCH TESTS. The
Property will be restored by Purchaser to its original condition at Purchaser's sole expense
following any site work. Purchaser shall release to Seller any and all independent studies or results
of Tests ob#ained during the Option Period.
Section $. Closing Contin�encies. DELETED BY AGREEMENT OF THE PARTIES.
Section 9. Closin .
(a} The closing of the sale of the Property by Selier to Purchaser ("Closing") shall
occur through the office of the Title Company no later than eigkteen (18) months after the Effective
Date. At the Closing, all of the following shall occur, all of which are deemed concurrent
conditions:
(1) Seller, at Purchaser's sole cost and expense, shall deliver or cause to be
delivered to Purchaser the following:
(i) A Special Warranty Deed {"Deed"), fully executed and
acknowledged by Seller; conveying to Purchaser good and indefeasible fee
simple title to the Property subject to existing lcnown or unknown
easements, rights-of-way, and prescriptive rights, whether of record or not;
containing (A) reseivations pwsuant to Section 1(c), (d) and (e); (B) the
Purchase Contract 7364 Love Cir
pg. 5
following statement as required by Local Government Code 272.001(h),
"To protect the public health, safety, or welfare and to ensure an adequate
municipal water supply, the Property sold by the City of Fort Worth under
Local Government Code 272.001(h) is not eligible for and the owner is not
entitled to the exemption provided by Section 11.142(a), Water Code;" and
(C) the language required in Section 5, with the precise form of the Deed to
be determined pursuant to Section 11 below;
(ii) Any other instrument or document necessary for Title Company to
issue the Owner Policy in accordance with Section 9(a) (3) below.
(2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be
delivered to Seller thz•ough the Title Connpany a certified check or such other means
of funding acceptable to Seller, in an amount equal to the Purchase Price, plus any
rent due and owing under the Lease Agreement.
(3) The Title Company shall issue to Purchaser, at Purchaser's sole cost and
expense, a Texas 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.
(4) Seller and Purchaser shall each pay their respective attorneys' fees.
(5) Except as otherwise provided herein, aIl costs and expenses in connection
with Closing shall be paid or borne by Ptu•chaser including without limitation, Title
Company attorney and escrow or settlement fees, costs of tax certificates, survey
costs, and title insurance policy costs.
(6) Purchaser shall be responsible for alI ad valorem and similar taxes and
assessments, if any, relating to the Property.
(c} Upon completion of the Closing, Seller shall deliver possession of the Properiy to
Pw�chaser.
Section 10. Agents. Seller and Purchaser each represent and warrant to the other that it
has nai engaged the services of any agent, broker, or other similar party in connection with this
n�ansactian except the following: NA. PURCHASER SHALL BE SOLELY
RESPONSIBLE FOR AND SHALL INDEMNIFY SELLER FROM PAYMENT OF ANY
BROKERAGE FEES OR COMMISSIONS.
Section 11. Closing Documents. DELETED BY AGREEMENT OF THE PARTIES.
Section 12. Notices.
(a) Any notice under this Contract shall be in writing and shall be deemed to have been
seived if {i) delivered in person to the address set forth below for the party to whom the notice is
Purchase Contract 7364 Love Cu-
pg. 6
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 FedEx
Overnight Delivery or other reputable overnight carrier for next day delivery, addressed to the
party ai the address specified below.
(b}
(c)
The address of Seller under this Contract is:
City of Fort Worth
Property Management Department
Attn: Nita Shinsky
900 Monroe Street, Suite 400
Fort Worth, Texas 76102
The address of Purchaser under this Contract is:
Kevin B. and Rebecca M. James
7365 Love Circle
Fort Worth, TX 76135
With a copy to:
City of Fort Worth
City Attorney's Of�ce
Attn: Leann Guzman
200 Texas Street
Fort Worth, Tezas 76102
(d) From time to time either party may designate another address under this Cont�act
by giving the other party advance written notice of ihe change.
Section 13. Termination, Default, and Remedies.
(a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant
to this Cont�act 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 Cantract 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 natice thereof to Purchaser prior to or
at the Closing, whereupon neither party hereta shall have any fiu-ther rights or obligations.
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, PURCHASER
ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT PURSUANT TO
THE TERMINATION RIGHT IN THIS SECTION 13(a) OR ANY OTHER
TERiVIINATION RIGHT HEREIN WILL BE A DEFAULT BY LE5SEE UNDER THE
LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO
THE TERMINATION RIGHT OF THE SELLER/I.ESSOR IN THE LEASE
AGREEMENT.
(b) If Seller fails or refuses to consummate the sale of the Property pursuant to this
Contract at Closing or fails to perfotm 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. A termination by
Purchase Contract 7364 Love Cir
pg. 7
Purchaser of this Contract due to Seller's default will not result in a default under the Lease
Agreement.
Section 14. Entire Contract. This Contract (including the attached exhibits) contains the
entire cantract 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 binding on either
party unless set forth in a document executed by that party.
Section 15. Assigns. This Contract inures to the benefit of and is binding on the parties
and their respective legal representatives, successors, and assigns. Any assignment must be
approved by City of Fort Worth and this Contract cannot be assigned less than 60 days prior to the
scheduled Closing.
Section Ib. Time of the Essence. It is expressly agreed that time is of the essence with
respect to this Contract.
Section 17. Takin� 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.
5ection 18. Governing'Law. This Contract shall be governed by and construed in
accordance with the laws of the State of Texas.
Section 19. 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 Cont�act are to be made in Tan•ant County, Texas.
Section 20. Venue. Venue of any action brought under this Cont�act shall be in Tarrant
County, Texas if venue is legally proper in that county.
Section 21. 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 22. Business Days. If the Closing or the day for performance of any act required
under this Contract falls on a Saturday, Sunday, or legal holiday for the City of Fort Worth or
federal holiday, then the Closing or the day for such perfoimance, as the case may be, shall be the
next following regular business day.
Section 23. Multiple Counterparts. This Contract may be executed in any number of
identical counteiparts. If so executed, each of such counterparts is to be deemed an original for all
purposes, and all such counterparts shall, collectively, constitute one agreement, but, in making
Purchase Contract 7364 Love Cir
pg. 8
proof of this Contract, it shall not be necessary to produce or account for more ,than one suchcounterpart.
This Contract is executed as of the Effective Date.
SELLER:
CITY OF FORT WORTH, TEXAS
Dana uu1,:4q{f By;oan, eurihdoffprw,2021 u:50 CDT)
Dana Burghdo� Assistant City Manager
ATTEST:
Mary Kayser City SecretaryM&C: L-15964 1295: NIA
APPROVED AS TO LEGALITY AND FORM
Assistant City Attorney
CONTRACT MANAGER
PURCHASER
Kevin B. James and Rebecca M. James
-,f--;lrub-'-'-"' .f w=>-C.-.>,�_.L--��-----�-=-----==----/ �caM.Jam�
By signing I acknowledge that I am the person responsible for the monito1ing and administrationof this contract, including ensuring all performance and reporting requirements.
Name: Nita ShinskyTitle: Land Agent
Purchase Contract 7364 Love Cir
pg.9
By its execution below, Title Company acknowledges receipt of this Contract and agrees to hold
and deliver the same and perform its duties pursuant to the provisions of this Contract.
TITLE COMPANY:
By: Alamo Title
Name: Lavonne Keith
Title: Escrow A�ent
Date:
Phone 817.921.7393
Fax
Purchase Contract 7364 Love Cir
pg, 10
Exhibit "A"
Property Description
Lot 5, Block 15, Lake Worth Leases Addition, Tarrant County, Texas and otherwise
known as 7364 Love Circle, Fort Worth, Texas 76135.
. - f�(s • . Surrr T /1o5s6 cM5
� ' � ,�- � (� LEASE AGREEMENT � CleiKs �'�e �o. s23 6 3�
T'HE STATE OF TEXAS � ;�' �?._ i�. I.J
uvow ua, � BY �s� �sEi�ris:_:;'.T'' 'i E�AS
aOUNTX OF TARRANT �
8`� �.FR l ts E:i'� IG� �►2
• T'hc City of Fort Worth, I.essor, a homanile municipal corporatioa cihiated '}p TarranE Gctunty'%fifx�, (hereinafter
sometima referred to as •�Gyry•�) uting herein by and through �� 1 r'-.. `" `' �`" �n�
"v��.� •��'-- �jts duly suthorized
City Manager, and 310RA it: COOK I,essee, hereby make and mter mto the following lease agrec-
mrnt. �•_• _.....__._-e_---
�.: �- .,.___ ....
f.
For and in consideration of the prompt payment by Lessee, Mhen due, of kll rents as herein provided, and further
for and Ia consideration of the full and timely performana by L�essee of all of Lasa's duties and obligadons in strict
oompliana with the coveaants, conditions and agroements herein contained. Gyty hereby demisa nnd leases ro I.essee,
and Lessee her�by aaxpts from City, the following desctibed real properiy for the term aad uses and subject to the
canc3itions td forih 6erein: �
IAT 5, BLqCiC 15. LAKE WORTR LEA5E SURQEY
AKA 7364 Love Circle
The icrm of the lease sba11 be 50 n� �� Tebruary i� 19F12
3smiary 31� 2032 Y�'s ����g and ending
The City may offer five (5) year extensions to the term of the lease on each fifth siu�iversary of the lease. The Lasee
may refuse such extension by giving aotice to the City, in writing, within suty {6(}) days after reaipt of notice of any
eatension.
IIl. LF55EE'S RIGH75 AND OBLIGATION3
Lessee shall:
A. pay annual rent to the C3ty of Fort Worth in the sum of S 3�6 •�� , said rent payable in 12 equal
insta!lments, one such installment due on the fust of �ach month.
B. pay the rent due under this lease to the Assasor-Collector of Taxes for the C�ty of Fort Worth, or other office
designated by the City.
C. pay rent for each year after the %rst year in an amount that stiall be adjusted by eighty percent (80%) of the
change in the annual average of uhe Consumer Price Index U.S. City Average, "all items" index, all urban consumers
(CPI-U} from the annua] average fot the previous calendaz year, a3 published by the Bureau of I.abor Statistics for the
Uniied States Department of Labor, said adjustment to be computed by dividing the CPI-U for ihe most recent year
by the CPI-U for the immediately preceding y�ar, subtracting one (1) from that quotient, multiplying that result by
eight-Lenths (0.8), adding one (1) to that product, and muldplying that sum by the rent Cor the previous year.
D. be able to use the leased land for raidendal and water recreational purposes, in compliance with applicable
wning ordinances.
E. uu and occupy the leased land, in compliance with the laws of the Unittd States of America, the statutes of
the State of Texaz, and the Charter and Ordinances of the CSty of Fort Worth, whether now in effect or bereinafter
adopttd so long as any haeinafter adopted ordinance or charter provision is not adopted solely for the purpose of
limiGng Ne rights of I.essee aad similazly situated I.essees.
F. acapt the premises in their present condition as being suitable for all pw�posa of tlus lease.
G. be deemed to be an inde�iendent tenant in possession of the premisa and responsible to all parties for his acts
and omissions with regard thereto, and the City shall in no way be responsible for any act or omission of the L.essee.
H. indemnify, hold harmless end defend the Cyty, its offivers, agents, and employees, from and against any and
al[ claims for damages or injury, including death, to persons or property arising aut of or incident to the leasing or the
use and occupancy of the leased land by Lessoe, bis guats or invitas.
I. indemn3fy, hold harmless and defend City from and against any and sIl mxhanic'a and materialmen's liens or
any othsr lirn, ciaim or chazge imposed upon the leased land or rising as a result of any conduM or activity by the
Lasse or anyone on his behalf.
3. providc and maintain suita�le maLh�: s and. ��ns fer tt� dispo�sl of Er..s�, irody waste, and excreta, in com-
pIiance with applicable sanitation laws and ordinaaas. <
K. not drill or dig any well on the leased land wi(hout the prior written spproval of the Gtity nor use the water
from such well until it h9s ban tested and approved by the appropriate authorities.
L. not commit, or allow w be oommitted, any wasUe on the premises, nor create or allow any nuisance to exist on
ihe premisa.
M. not. keep or peru�it aay animals on the leased premises other than domaticated dogs aud cats.
IV. LESSOR'S RIGATS AND OBLIGATiONS
Tfie Cit,y of Fort Worth ahall:
A. apprbve We sale, or auignment (hereiaafter coIIectivdy usignmcnt) of this lea�e or nmaining term, prov: '.;f
that. •
1. �ll emounts owed to tb� City hereunder and City ad valorem taxes are paid current to the date of such assign-
ment; and •
2. the assignment is evidenced in writing; and
. 3. in said assi�ment the assigna eapressly accepts, assumes, and agrees to perform all terms, conditions and
limitations to be kept and performed by Lessce under this lease; and
4, said writing is executed and acknowledged in recordable form; and
S. said assignment is submitted to the City at the Cyty Manager's office or such other office designated by the
City Manager.
Within 10 days of receipt of the assignment the CSty shall determine wheiher the assignment is in compliance with
provisions A-1 through A-5 above and notify both parties to said assignment if the assignment dces not comply with
those provisions. The City shall acknowledge compliance with the above provisions on the face of said assignment,
and assignment shall then be recorded in the office of the County Clerk of Tsrrant County, Texas, at Lessee's ex-
pense. Compliance with the provisions set out above ehall relieve the I.essee from further liability under this ]ease.
B. have the right to inspect the leased premises for complianca with City of Fart Worth Minimum Building Stan-
dards Code,City Ordinance No. 8006,at the time of any sale or traasfer. The City shall notify the purchaser or assignee
in writing of any violations of said ordinance within 10 days oi the submission of a proposed assignment to the City.
The purchaser or assignee shall not be issued a certificate of occupancy by the City until the requirements of sueh or-
dinance have been complied with.
C. shall not convey, sell, or transfer its interest in the leased land without altowing the I.essee the opportunity to ac-
guire the leascd land untess the conveyance, sale, or transfer is to a governmenta] entity with the power to condemn
the property for the purpose it is acquired. All transfers shall be subject to the competitive bidding laws of the State of
Tezas and the ordinanecs and chartor of the City of Pon Worth.
D. provide yearly statements of the rent due hereunder and in such statement specify the number of years remaining
in the ferm of this lease.
E. have the right to entcr upon the above described property at reasonable times and under reasonable cir-
cumstances for the purposes of examining and inspecting the leased land to determine whether Lessee has complied
with his obligations hereunder. This provision shall not be construed to euthorize entry into residences or other
bu'stdings on the leased land except where such entry is specifically suthorized by the provisions of this lease, the
statutes of the State of Texas, or the ordinances of the City of Fort Worth. '
F. warrant that Lessee will have quiet enjoyment and peaceful possossion of the leased land, and that the City will
defend the Lessee in such quiet enjoyment and peaccful possession during the term of this lease.
G. The City Manager shall review this lease prior to each �fth anniversary and shall make recommendations to the
Cyty Counci! regarding extensions.
V. LFSSOR'S OPTTONS
" The City of Fort Worth may, in the event that Lessee shall give notice to the Cify that a financia] hardship exists in
the payment of rentals due hereunder, the City Manager may waive any portion of that year's rent after consideration
of said hazdship: �Lessce shall have the right to present his request to the City Council of Fort Worth should the City
Manager deny the request.
Any rents waived as a result of such hazdship and remaining unpaid shall canstitute a lien against the Lessee's im-
provemonts and such unpaid rents shall bear interest at the current legal rate.
Lessee may:
VI. LESSEE'S OPTIONS
A. sell, assign, or sublet this lease or remaining term thereof.
B. construct new structures and enlarge existing structures on the leased land provided that such construction is in
accordance with all applicable City Codes and Ordinances.
C. make alterations, remodel, and make improvements to existing structures. and the leased land, provided that
such aciions shall be in accordance with applicable City Codes and Ordinances.
D. terminate this leasc withont reimbursement for Lessee's structures and improvemcnts at any time by giving the
City 30 days notice of intention to terminate.
VII. EXPIRAT70N OF LEASE
A. I3p¢n expirztion of :he.term oi this lease tha Cit:� st;all pay to the Less-_e s.n amoa�t equal to the then market
value of any structures or improvements heretofore madc or erected on the leased premises, except that payments for
any ntw structure and enlazgements to existing structures made or etected during the �na135 years of the lease term
will be a pro rata amount based on the number of years the structure or improvements are in place or the number of
years remaining on the lease at the time said structure or improvements were made, whichever is greater, times 2.86
petctnt, never to exceed 100% of the market value of the new structure and the enlazgement to the existing structure.
B. Tteplacement of all or part of structures destroyed in whole or in part by fire, explosion or act of God are deemed
structures or improvements heretofore made or erected on the leased premises.
C. The City shall pay the Lessee the mazket value of the structures and improvements as defined above upon
possession of the property. Acceptance of the amount offered by the City does noi forfeit Lessee's right to dispute the
amount paid, nor_shall any acceptance constitute a waiver of any, le�al reme�iv i.essee may have to determin? market
value. In the ovent that a court of competent jurisdiction determina that the amount paid to the Lessee by the City is
in excess of market value oF subh structures or improvements, the Lessee shap promptiy refund such excess to the City.
2.
�
VID. TERMINATION OF LEASE
�
A. In the event the I.essee:
' 1. is in arrears in We payment of thc rcnts, or other amouats agreed to be paid under the terms of this lease; or
2, has failed to perform any obligation under this lease, then the G�ty may give notice to the Lessee of termina-
tion of the lease by default, said nodce to specify in detail the defauits upon which the termination would be based. In
said notice the City shall demand that actions be taken within 45 days to cure the default or defauits upon which the
termination is based or the lease shall be terminated.
B. In the event of a default by Lessee, and said Las�e does not take action to cure the default within 45 days of the
notice from the City, the lease may be tertninated and the City shall have no duty to reimburse the I,essee for struc-
• tures or improvements to the leased land.l'he I,essee shall have the right to remove said structure, improvements, and
personal property within 90 days from the date of lease tetmination by default, and shall vacate the leased land at the
end of said 90 days. All such property not removed within 90 days shall become the property of the City.
' C. In th� event rentals to be paid under the terms of this lease is not paid when due, an addidonal late penalty of
1.5% per month shall be added to the amount due.
D. Upon termination of this lease or expiration of the term of this lease, Lasee shall be entitled and authorized to
rtmove from the premises all items of personal property belonging to Lessee aot permanently afiuced to the realty and
sll siruciures and improvements for which no reimbursament is made under the terms of this lease.
IX. MORTGAGES
A. So long as no default exists under the terms of this lease, the Lessee or any Assignee may mortgage his leasehold
tstate and improvements situated thereon to secure a loan or loans of monty actually made, or that will be made, or
any e�ctension or renewal of the same.
B. Such mortgage or deed of trust shall be in every respect subject, subservient and subordinate to all the conditions
and covenants of this lease.
C. In the event of a default that could result in the termination of this lease without reimbursement to Lessee for the
improvements and structures on the leased land, the City shall give notice to the mortgagee as is required to be given to
the Lessee, and said mortgagee shall have the right to cure said default and/or perform the terms and conditions of
this lease.
D. A mortgagee or trustee under a deed of trust shall have the same right and power to assign this lease, in conjunc-
tion with a trustee's sale or iransfer to satisfy Lessee's obligation to a mortgagee, as does the Lessee under the terms of
this lease.
E. At any time the City is to pay the Lessee fot structures or improvements on the leased land, the City shall give
natice to each mortgagee of that payment, and said mortgagee shall have ihe right to receive payment for any
outstanding obligation secured by mortgage or deed of trust on the leasehold and improvements.
F. The City shall be required to give such notice onty if the mortgagee has, in writing, informed the City of its in-
taest and has supp!ied an address for said notice.
X. OWNERSHIP OF IMPROVEMENTS
All atructures and improvements situated on the leased land when this lease is entered into are, and shall continue to
be, Yhe property of the Lessee, and all improvements hereinafter made by the Lessee on the leased land shall be the
progerty of the Lessee.
JLI. SUCCESSORS 1N INTEREST
A. In the event of the death of a Lessee, his successors and estate shall suceeed to his interest under this lease, and
thost entitled by law to succced to the Lessee's interest in the lease shall cantinuc to enjoy the rights and benefits
herennder of the deceased Lessee;
B. In the event that the Lessee or his Assignee is adjudicated a bankrupt, said lease may be assigned as provided
above, and any Assignee shall asswne the duties and liabilities as set aut abave.
XIT. VENIJE
Yenue of any action brought hereunder stiall lie exclusivoly in Tarranf County, Texas.
XIII. NOTICE
A. Any notice required under this lease, unless otherwise specified, shaII be given by deposi�in3 in the United 5t�te;
Mail as certi�ed mail, postage prepaid, addressed to the: '
1. I.essee's or Assignee's at the address shown on this lease unless said Lessee or As�igime has furnished to the ,
City, in writing, instruttions to ina:! netices to a_noth:r.a�3res;; . �. '
2. City Manager of the Ciiy of Foi-t VJorth; City Hall, Fort_ Worth, Texas; � �
3. Mortgagee at the address supplied to the City in writing for the mailing of such notice.
XtV. CONCLUSION
This instrument represents the entite agreement between the parties conceming th� leasing of the teased land and
shall be binding upon and shall be to the benefit of the parties hereto, their successors, assigns, and legal represen-
tatives, and all prior leases, assignments, or agraments of any nature concerning the leased land or property situated
thereon aie superseded by the terms of this lease.
EXECUTED at Fort Worth, Tarrant County, Texas, this 19th day of
Febxuar� .198._82. �
s
h1y.Commission Excirer. in - a a- 0�'�
•STATE OF TEXAS §
COiJNTY OF TARRANT §
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• CITY OF FORT WORTH .
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EEFORE ME, the undersigned authority, a Notary Public in and for the Sia'te of Texas; on this day personally
$ppeared - �` ' ' " ' " `'�"j2 • C %%��t�, � ; �Cnown to me to be the person whose name is
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G�ty of Fort VVoi-t�i, a iiiunicipal 'coiporation of Tarrant County Texas, and'as�.:� �
thtreof, and.for.the purposes arid consideration therein eapressed and iri the capacity' tlierein tated. `'
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GIVEN UNDER IvIY HAND AND SEAL OF OFFICE ihis � day o , A.D.
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10/13/2020
CITY COUNCIL AGENDA
M&C Review
Official site of the City of Foit Worth, Texas
FpR� �r��
COUNCIL ACTION: Approved on 1118i2016
DATE: 11/8/2016 REFERENCE NO.: L-15964 LOG NAME: 21LAKESALES
CODE: L TYPE: NON-CONSENT PUBLiC HEARING: NO
SUBJECT: Authorize Contract for Sale with Current Residential Lessees of City-Owned Lake Worth
Lease Addition Lots for Fair Market Value and Authorize Contemporaneous Lease
Amendment to Provide for a Shorter Term and the Disposition of Improvements Upon
Expiration (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager or his designee to:
1. Enter into a Contract for Sale with current residential lessees of City fee-owned Lake Worth Lease
Addition platted residential lots for a sales price that is fair market value as determined by an
appraisal by a cerkified appraiser; and
2. Enter into a Lease Amendment, contemporaneously with the Contract for Sale, with current
residential lessees of City fee-owned Lake Worth Lease Addition lots to amend the lease to provide
for a shorter term and the disposition of the improvements upon expiration.
DISCUSSION:
In 2000, the City of Fort Worth mailed letters to Lake Worth Lease Addition lessees of record offering
an option to purchase the land if the leased lot met the specified conditions of (1) their lot(s) being
platted and (2) connection to either municipal water or sewer. Multiple lots could not be platted at that
time and the lessees of those properties were never offered the option to purchase due to
deficiencies associated with the property which caused non-compliance with platting requirements.
Additionally, some of the lessees on properties that met the conditions of the City's offer for the option
to purchase did not enter into the Purchase Option Agreement with the City or lost the option due to
not adhering ta the option Agreement conditions.
Lessees of platted and un-platted residential City-owned Lake Worth Lease Addition properties are
requesting to purchase the leased land on which they have put improvements. The current residential
leases expire in 2032 and per the lease terms the City is required fo purchase improvements at fair
market value at that time. The current residential Lake Worth Lease Addition lease terms do not
authorize the sa[e of the land to the current lessee or the extension af the lease.
This Mayor and Council Communication will provide for current lessees of residential City-owned lots
in the Lake Wo�th Lease Addition whose lots meet platting conditions, and who comply with the
conditions outlined below to be eligible to purchase their leased lot from the City at the fair market
value determined at time of the purchase.
Conditions of Purchase:
Property must be platted at the expense of the lessee.
Lessee must hire an approved appraiser to obtain a fair market value appraisal of the land to be
conveyed.
Lessee must execute a Lease Amendment that provides for a lease termination date that is the
earlier of (i) closing on the purchase of the property or (ii) 18 months after the date of the
amendment at which time the improvements would become property of the City.
Lessee must execute a Purchase and Sale Agreement contemporaneously with the Lease
Amendment requiring a closing date of no more than 18 months from the date of execution.
apps.fortworthtexas.govtcouncil_packeUmc_review.asp? ID=22991 &councildate=11 /8/2016 � �2
10/13/2020 M&C Review
All revenue from the sale of the land will be deposited in the Lake Worth Trust Fund to be used for
capital projects around the lake as approved by the Property Management Director.
This property is located in the COUNCIL DISTRICT 7, Mapsco 44, 45, 46, 58 and 59.
This M&C does not request approval of a contract with a business entity. However, if the 1295 form is
required, it will be provided by the lessee at the time of contract execution.
FISCAL INFORMATION/CERTIFICATION:
The Director of �inance certifies that Property Management Department will be responsible for the
collection and deposit of funds.
Fund De artment Account Pro ect Pro ram
p J J
ID ID _
Fund Department Account Proj�
ID ID
� Submitted for City Manager's Office by_
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
LAKEWORTH RESIDENTIAL LEASES 8x11.pdf
Budget Reference # Amount
Year (Chartfield 2)
Budget iteference # Amount
Year (Chartfield 2)
Jay Chapa (58Q4)
Steve Cooke (5'[ 34)
Lester England (8053)
Jean Petr (8367)
apps.fortworthtexas.govtcouncil�ackeUmc_review.asp?ID=22991 &councildate=ll /8/2016 2�2