HomeMy WebLinkAboutContract 55872Secretary Contract# 55872
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
Jack P. Riiey and Lois M. Rilev ("Purchaser") as of Apri126, 2021 ("Effective Date").
RECITALS
Seller is the owner of the real property only (exclusive of improvements) located at 8833
Heron Drive (the Property"), as shown and more particularly described on the attached
Exhibit "A", incorporated herein for all purposes. •
2. Selier and Purchaser (as successor-in-interest to original lessee) are parties to a ground
lease for the Property dated February l, 1982, as amended by a lease acknowledgement
dated October 19, 2020 (collectively, the "Lease Agreement").
3. The Lease Agreement provides Purchaser with an optian to purchase ("Option"), pursuant
to 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, warranties 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. Agreement of Sale and Purchase.
(a} Seller agrees to sell and convey the Property to Purchaser, and Purchaser agrees to
purchase and accept the Property from Seller, for the purchase price (as defined below), subject to
the terms and conditions set forth in this Contract.
(b} Seller shall convey the Property to Purchaser 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 reserved to Seller (or have previously been reserved by Seller's predecessor in
title), and such reservation is hereby approved for all purposes: 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 aircraft 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
Purchase Contract 8833 Heron Drive aFFICIAL RECORD
CITY SECRETARY
FT. VIlORTH, TX
and landing of aircraft. Purchaser hereby releases Seller, its officers, agents and employees from
any and all claim and liability resulting from the noise, vibratian, 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 taking 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 af record or not, known or unknown.
(f) Pursuant to City of Fort Worth Code of Ordinances Section 35-3, Purchaser agrees
to connect to water and sanitary sewer lines if available prior to Closing, or, if not available prior
to Closing, as soon as practicable after such lines are made available. This requirements shall
survive Closing.
SecHon 2. Purchase Price.
The purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller in
cash at Closing (defined below), is Sixty-Five Thousand and 00/100 dollars ($65,000). 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 certified appraiser, and pursuant to an appraisal obtained by the Citv
of Fort Worth, dated March 10, 2020, 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
Purchaser's sole cost and expense (i) a Commitment for Title Insurance and Title Policy ("Title
Commitmen#") from the Title Company of Purchaser's choice {"Title Company"), setting forth the
status of the title of the Properry and showing all liens, claims, easements, rights-of-way,
reservations, restrictions, encroachments, tenancies, and any other 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,
restrictions, and easements.
(b} Within twenty-five (25) days after the Effective Date, Purchaser may obtain, at
Purchaser's sole cost and expense, an updated survey ("Surve�') consisting of a plat and field
notes describing the Property, prepared pursuant to a current on-the-ground staked survey
performed by a registered public surveyor or engineer satisfactory to Purchaser and Title
Company. The Survey shall (i) be certified to Purchaser, its successors and assigns, and Title
Company, (ii) reflect the actual dimensions of and the total number of square feet within the
Property, net of any portion thereof lying within a publicly dedicated roadway or a utility easement,
(iii) identify any rights-of-way, easements, or other Encumbr�nces by reference to applicable
recording data, and (iv) include the Surveyor's registered number and seal, and the date of the
Purchase Contract 8833 Heron Drive
pg. 2
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 description of the Property.
(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 Purchaser 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 Seller does not cure the Objections,
cause the Title Commitment and Survey to be amended to give effect to matters that are cured,
and give Purchaser written notice thereof within the five (5} day period following receipt of the
notice fram Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this
Contract by giving written notice thereof to Seller at any time after the expiration of such Cure
Period but prior to the expiration of the option period (as defined below), and, upon such
termination, neither party hereto shall have any further rights or obligations; or (ii) to waive the
Objections and consummate the purchase of the Properly subject to the Objections which shall be
deemed ta be Permitted Encumbrances. Notwithstanding the foregoing sentence, if Seller has
commenced curing the Objections and is diligently prosecuting the same, as determined by
Purchaser in Purchaser's sole discretion, then Purchaser in Purchaser's sole discretion may extend
the Cure Period for an amount of time Purchaser deems necessary for Seller to cure the same.
PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT
PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 3(d) OR ANY OTHER
TERIVIINATION RIGHT HEREIN WII�L BE A DEFAULT BY LESSEE UNDER THE
LEASE AGREEMENT, AND PURCHASER/I.ESSEE 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 SPECIFICALLY NEGATE5 AND DISCLAIMS ANY REPRESENTATIONS,
WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF
ANY HIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED,
ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS, TO CONCERNING OR
WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE
PROPERTY INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND
GEOLOGY, (B) TAE 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 TAE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES
OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR
BODY, {E) THE HABITABILITY,
Purchase Contract 8833 Heron Drive
MERCHANTABILITY, M�tKETABILITY,
pg. 3
PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY,
(� THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF
ANY, INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY,
STATE OF REPAIIt OR LACK OF REPAIR OF THE PROPERTY, OR (I� ANY OTHER
MATTER WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT
SELLER AAS NOT MADE, DOES NOT MAI� 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, A5 DEFINED BY THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980, AS
AMENDED, AND REGULATIONS PROMULGATED THEREUNDER. PURCHASER
FURTFIER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE
OPPORTiTNITY 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 THIS 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
SELLER WITI3 RESPECT TO THE PROPERTY CONDITION, BUT IS RELYING
50LELY UPON ITS EXAMINATION OF THE PROPERTY. PURCHASER TAKES THE
PROPERTY UNDER THE EXPRESS UNDERSTANDING THERE ARE NO EXPRESS
OR IMPLIED WARRANTIES (EXCEPT FOR LIMITED WARRANTIES OF TITLE SET
FORTH IN TAE 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 N�R1Vii�ESS AND RELEASES SELLER FROM
LIABILITY FOR ENVIRONMENTAI,, 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 TAE TEXAS WATER CODE.
PURCHASER INDEMNIFIES, HOLDS H��LIVILESS AND RELEASES SELLER FROM
ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS
AFFECTING TI3E PROPERTY ARISING AS THE RESULT OF SELLER'S OWN
NEGLIGENCE OR THE NEGLIGENCE OF SELLER'S REPRESEN'�ATIVES, BUT
NOT ANY WILLFUL ACTS OR OMISSIONS OR GROSS NEGLIGENCE OF SELLER
OR SELLER'S REPRESENTATIVES. PURCFIASER INDEMNIFIES, HOLDS
Purchase Contract 8833 Heron Drive
pg. 4
HARMLESS AND RELEASES SELLER FROM ANY LIABILITY FOR
ENVIRUNMENTAL PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY
ART5ING 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 ENV�RONMENTAL
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 FUREGOING. 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 6. 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 �GREES TO INDEMNIFY AND DEFEND SELLER AND THE
PROPERTY FROM ANY LIENS AND CLAIMS RESULTING FROM SUCH TESTS. The
Property wiil 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 abtained during the Option Period.
Section 8. Closing Contin�encies. DELETED BY AGREEMENT OF THE PARTIES.
Section 9. Closin .
(a) The closing of the sale of the Property by Seller to Purchaser ("Closing") shall
occur thraugh the office of the Title Company no later than eighteen (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 known or unknown
Purchase Contract 8833 Heron Drive
pg. 5
easements, rights-of-way, and prescriptive rights, whether of record or not;
containing (A) reservations pursuant to Section 1(c), (d) and (e); (B) the
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 through the Title Company 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, all costs and expenses in connection
with Closing shall be paid or borne by Purchaser 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 all ad valorem and similar taxes and
assessments, if any, relating to the Property.
(c} Upon completion of the Closing, Seller shall deiiver possession of the Property to
Purchaser.
Section 10. Agents. Seller and Purchaser each represent and warrant to the other that it
has not engaged the services of any agent, broker, or other similar party in connection with this
transaction 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. DELE'TED BY AGREEMENT OF THE PARTIES.
Section 12. Notices.
Purchase Coniract 8833 Heron Drive
pg. 6
(a} Any notice under this Contract shall be in writing and shall be deemed to have been
served if (i) delivered in person to the address set forth below for the party to whom the notice is
given, (ii) delivered in person at the Closing (if that pariy is present at the Closing), (iii) placed in
the United States mail, reiurn 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 at the address specified below.
(b} 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
(c} The address of Purchaser under this Contract is:
Jack P. and Lois M. Rilev
8108 Woodvale Rd
Fort Worth, TX 76135
With a copy to:
City of Fort Worth
City Attorney's Ofrce
Attn: Leann Guzman
200 Texas Street
Fort Worth, Texas 76102
(d) From time to time either party may designate another address under this Contract
by giving the other party advance written notice of the change.
Section 13. Termination, Default, and Remedies.
(a} If Purchaser fails or refuses to consummate the purchase of the Property pursuant
to this Contract at the Closing for any reason other than termination of this Contract by Purchaser
pursuant to a right so to terminate expressly set forth in this Contract 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 ta terminate this Contract by giving written no�ice thereof to Purchaser prior to or
at the Closing, whereupon neither party hereto shall have any further rights or obligations.
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, PURCHASER
ACKNOWLEDGES THAT A TERNIINATION OF THIS CONTRACT PURSUANT TO
THE TERII�IINATION RIGHT IN THIS SECTION 13(a) OR ANY OTHER
TERNIINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE UNDER THE
LEASE AGREEMENT, AND PURCHASER/LESSEE �VILL THEN BE SUBJECT TO
THE TERMINATION RIGHT OF THE SELLER/LESSOR 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 perform any of Seller's other obligations hereunder either prior to or
at the Clasing 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
Purchase Cantract 8833 Heron Drive
pg. 7
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
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 contract between Seller and Purchaser, and no oral staiements 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. Assi ns. 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 16. Time of the Essence. It is expressly agreed that time is of the essence with
respect to this Contract.
Section 17. Taking Prior to Closin�. If, prior to Closing, the Property or any portion
thereof becomes subject to a taking by virlue of eminent domain, Purchaser may, in Purchaser's
sole discretion, either (i) tertninate this Contract, and neither party shall have any further rights or
obligations hereunder, or (ii) proceed with the Closing of the transaction with an adjustment in the
Purchase Price to reflect the net square footage of the Property after the taking.
Section 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 Contract are to be made in Tarrant County, Texas.
Section 20. Venue. Venue of any action brought under this Contract shall be in Tarrant
County, Texas if venue is legally proper in that county.
Section 21, Severabilitv. If any provision of this Contract is held to be invalid, illegal,
or unenforceable in any respect, such invalidity, illegality, ar 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 performance, as the case may be, shall be the
next following regulax business day.
Section 23. Multiple Counterparts. This Contract may be executed in any number of
identical counterparts. If so executed, each of such counterparts is to be deemed an original for all
Purchase Contract 8833 Heron Drive
pg. 8
purposes, and all such counterparts shall, collectively, constitute one agreement, but, in making
proof of this Contract, it shall not be necessary to produce or account for more than one such
counterpart.
This Contract is executed as of the Effective Date.
S�LLER: PURCHASER
CITY OF FORT WORTH, TEXAS JACK P. AND LOIS M. RILEY
Dqvra Bur�Hdoff
BV� Dana Burghdoff (`.iun 15, 20211246 CDT)
�
Dana Burghdoff, Assistant City Manager
Date:
AT'TEST:
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Mary Kayser
City Secretary
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CONTRACT MANAGER
By signing I acknowledge that I am the person responsible for the monitoring and administration
of this contract, including ensuring all performance and reporting requirements.
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Name: Nita Shinsky
Title: Land A1�ent
Purchase Contract 8833 Heron Drive
�FFICIAL RECORD
CITY SECRETARY
FT. VIlORTH, TX
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 Agent -
Date:
Phone 817.921.7393
Fax
Purchase Contract 8833 Heron Drive
pg. 10
Eghibit "A"
Property Description
Lot 24, Block 28, Lake Worth Leases Addition, Tarrant County, Texas and otherwise
known as 8833 Heron Drive, Fort Worth, Texas 76135.
. _ �iC�t �B�T q
LEASE AGREEMENT
TSE STATE QF TE%AS �
[1VOW ALL lY�IV SY TSESB PRESENTS:
CO�SIdTY OF TARRANT �
The Gl'ty of Fort Worth, I.essor, a homo-ruie muniapal cotporatioa situated ia Tarrant County, Texas, (haeinafter
sometimes referred to as "G5ty") sctiag herem by and through - iu duly authorized
City Manager, and T• - �-�p� �,� ,Lasee, hereby make aad arter iato the following lease agree-
ment. AOi�£3�,HY L. C.'ti3�7R�TE
For and im consideration of the prompt paymtnt by Lessee, w�hen due, of alI reats as herem providcd, and further
for and in cansideration of the fnll and timely performana by I,essee of all of Lasee's dutia and obligations in strict
eomptiance with the coveaants, condifions and agxmrnu haein contaiaed, City haeby demises and ]eas�s to Lessce,
and I.essx hercby acapts from GYty, the foUowing desaibed real property for t�e term and usa and subject to the
conditiaas set forth heaein:
i0`S' 24, SI�OCK 2$, T,�Y.? WORTF 7,EASR �.cFiRgFY
8833 Hexoa Drf.ve
. II. TERiK
Thetezm of tha lcase shaU bc Sc� years commmcin8 b'^'ar�sa��,—��g^ and ending
January 37_. 2n32 .
The �ty may offer five (5) year extensions to the term of the lease on each fifth anniversary of the lease. The I.essee
may refnse such extension by giving notice to the G1ty, in writmg, within sizty (6U) days afta rxeipt of notice of any
rxtrasion.
IIT. LESSEE'5 RIGHT'S AND OBLIGATi4NS
I,esm shall:
A. pay annual reat to the GSty o1' Fort Wor[h in the sum of S 37� - n� , said rrnt payable in 12 equal
installments, one such installment due on the fust of each month.
B. pay the rent due under this lease to the Assessor-Collector of Taxa for the GYty of Fort Worth, or othor office
daignated by the City.
C. pay rent for each ytar aftsr the first year in an atnount that shall be adjnsted by eighty percent (80%) of the
change in the annual average of the Consumer Price index U.S. City Average, "all items" index, all wban consumers
(CPF-Ln from the annual average fot tho previous calendar year, as published by the Bureau of Labor Statistics for the
United 5tates Deparbnent of I.abor, said adjustment to be comnuted hy dividiag the CPl-U for the most rxrnt year
by the CPI-U for thc immadiately preceding year, subti-acting one (i) from that quotiart, multiplying that rtsult by
eight-tenths (0.8), add'utg one (1) to that product, and multiplyiag that sum by Lhe rent for the previous year.
D. be able to use the leased land for residmtial and water rxnationat gurposcs, in compliance with applicable
zoaing ordinanas.
E. use and occupy the l�ased Jand, in compliancx with the laws of the United Stata of Ametica, the statutes of
the Siatc of Texas, and the Charter and Ordinances of the Gyry of Fort Worth, whethcr now in effect or hereinafcer
adopied so long as any hveinafter adopted ordiaance or charter provision is noi adopted solcly for the purpose of
limitiag the rights of Lessee and similarly situated T�ssoes.
F. accept the premisa in their praent condition as beiag suitable for alt pvrposa of this leas�.
G. be deem�d to be an independtnt tenaat in possession of the premises and raponsible to all parties for his aas
and omissions with regazd thcreto, and the City shall in ao way be responsible for any act or omission of thc Lessee.
Ii. indemnify, hold harmless and defend the City, its of�cers, agents, and employea, from and against any and
a11 ciaims for damages or injury, including doath, to persons or property arisiag aut of or incidrnt to the leasing or the
use aad occupancy of the leascd land by Lessce, his gaesu or iavitas.
T. indemnify, hold harmless and defend City from and against any and sIt mschanids and materialmea's liens or
any other &m, claiaa or charge imposed upon the leased land or rising as a result of any coaduct or activity by the
I,essec or anyone on his behalf.
3. DiOV1dC 8n[I mainfain S1itHble *�lrthylc ^,.�; ��,,,� �: :.�;o-d:.,;,3sat :.: �.s�, i r3y aaste, and excre`�a, in com-
pfianee wiih applicable sanitation laws and ord"maneGs. �
K. n�t drill or dig any a�]1 on the leased laad aithout the prior writtea spprovel of the City nor use the water
from such well until it has.beea testai.aad approved by th_ �ngroariaie su�or:wes.
L. noi commit, or eFlow to � coam:tted, any waste on tae premiscs, aor create or a11ow any nuisana to exist on
the premises.
M. not keep or pamit any enimals on the icased premises oYha than domesticated dogs and cats.
1V. LESSOR'S R1GH1'S AND OHi.IGATIONS
'Fhe GSty of Fort Worth shall:
A. annrove the saleRor assignmmt (hereinaftcr collatively assignment) of this ]ease or remaining term, provided
that:
1. all amonnts owed to the City hereunder and City ad valorem taxa are paid currrnt to the dato of such assign-
mcnt; and
1:27(3 i397
2. the assignment is evideaced in writing; and �
. 3. in said assignment the assignee expressly accepts, aunma, and agrees to perform all terms, conditions and
limiiations to be kept and performed by L.sssce under this lease; and
4, said writing is executed and acknowledged in recordable form; and
S, said assignment is submitted to the CYty at the CTty Manager's office or such other of�ce designated by the
City Manager.
Within 10 days of receipt of the assignmmi !he C�ty shall doternune whether ihe azsigiment is in compliance with
provisions A-1 through A-5 above and notify both parties to said assignment if the assignment does not comply with
those provisions. The City shall acImowledge compliana with ihe above provisions on the face of said assignment,
and assignment sha11 thm be recorded in t6e offia of the County Clerk of Tarrant County, Texas, at Lessee's ex-
ptnsa Compliance with the provisions set out above shall relieve the %essee from further liability under this lease.
B. have th� right to inapecK ihe leascd psemises for compliance with G�ty of Fort Worth Minimum Building Stan-
dards Code,Gl'ty Ordinance No. 8006,at the time of aay sale or transfer. ?hc GSty shall aotify the purchaser or assignee
in writing of any violations of said ordiaance within 10 days of the submission of a proposed azsignment to the City.
The purchaser or assignee shall r.ot be issued a certeficate of oa�e:pancy by tha r'ity u:ti] Lhe *equirements of such or-
dinance have been complied with.
C. shall not convey, sell, or transfer its interest in the leased land without a2Iowing the Lessee the opportunity to ac-
quire the leased land uriless the mnveyance, sale, or txansfer is to a governmental entity with the power to condemn
the property far the pwpose it is acquired. All transfers shall be subject to tfie compctitive biddiag laws of the State of
Texas and the ordinances and charter of the City of Fort Worth.
D. provide yearly statemenu of the rent due hereunder and in such statement specify the number of years romaining
in ihe term of this lease.
E. have the right to enier upon the above described property at reasonable times and under reasonable cir-
cumsiances for the purposes of euar �'�ning and iaspecting the lcased land to deteraune whether Lessee has �omplied
with his obligations hereunder. This provision shall not be coastrued to authoriu entry into raidences or other
buildings on the Ieased land except where such entry is specifically authorized by the provisions of this lease, the
statutes of the State of Texas, or the ordinances of the GSty of Fort Worth. '
F. warrant that Lessce will have quiet enjoyment and peaceful possession of the leased land, and that the City will
defend the Lessee in such quiet enjoyment and peaceful possession during the term of this lease.
G. The City Manager shall review this lease prior to each fifth anniversary and shall make recommendations to the
City Council regarding extensions.
V. LFSSOR'S OPTTONS
The City of Fort Worth may, in the event that Lessee shall give notice to tfie City that a financiai hardship exists in
tfie payment of reatais duc hereunder, the City Manager may waive any portion of that year's rent after consideration
uf said hardship. Less�e_shall have the right to present his request to the City Councit of Fort Worth should the City
Manager deny the request.
Any rents waived as a result of such hazds3rip and remaining unpaid shall canstitute a lien against the Lessee's im-
provements and such unpaid renu shall beaz interest at the current legal rate.
Lessee may:
VI. LE5SEE'S OPTIONS
A, sell, assign, or sublot this lease or remaining term thereof.
B. construct new structures and enlarge existing swctures on the leased land provided that such construction is in
accordance with all applicable CSty Codes aad Ordinances.
C. make alterations, remodel, and make improvements to existing structurts and the leased 1and, provided that
sach actions shall be in accordance with applicable CYty Codes and Ordinaaces.
D_ terminate this lease without reimbursement for Lasee's structures and im�rovemenu at any time by giving the
City 30 days notice of intention to terminate.
VII. EXPIRATTON OF LEASE
A. LT;.�a �pi:stio.-.,cf �he ierm of :his :erse Lhe G�ty sF�..:l p�y to �he Lessx aa aa±o�t eqL'� f0 !.�:� L�:en r�z:wet
vaIue of any structures or improvements heretofore made or erected on the leased premisrs, except that payments for
any new siructure and enlazgements to existing structures made or erected during the final 35 years of the iease term
wiIl be a pro rata amount based on the number of years th: stzuctuse or imnr.ovemenu ase ±� place or the ne�ber of
years remaining on the lease at the time said structvre or improvements were made, wh;chever is greater, times 2.86
percent, aever to exceed 100% of the mazket value of the aew structure and the rnlazgement to the existing structure.
B. Replacement of aU ox part of structures desuoyed in whole or in part by fre, explosion or act of God are deemed
structures or improvtmeats heretofore made or erccted on the leased premises.
C. T'he GSty shall pay the Lasce the mazket value of the structures and improvements as defined above upon
possession of the property. Acctptance of the amount offered by the City does aot forfeit Lessee's right to dispute the
amount paid, nor shall any acaptance constitute a waiver of any le¢al remeciv T.essee may have to determine market
vaiue. In ihe event ihat a court of competent jurisdiction determines that the aaiount paid to the Lessee by the C�ty is
in excess of market value of such structures or improvemeats, the I.essee shall gromptly refund such excess to the City.
2.
I2fl3 I3?�
VIII. TERr�IINATlON OF LEASE
.>. In the evcnt the Lessa:
1. is in arrears in the paymeut of the rents, or other amounts agreed to be paid under the terms of this lease; or
2. haz failed to perform any obligation undcr this lease, then the G�ty may give notice to the Lessce of termina-
tian of the lease by default, said notice to specify in detai] the defaults upon which the termination would be based. In
said notic� the CSty shall demand that actions be taken within 45 days to cure the default or defaulu upon which the
termination is based or the lease shall be terminated.
B. In the event of a default by Lessce, and said Lessee does not take acdon to cure the default within 45 days of the
notice from the City, the lease may be terminated and the City shall have no duty to reimburse the Lessee for struc-
tures or improvements to the leased land. Tbe Lasce shalI have the right to remove said structure, improvemenu, and
persoaal property within 90 days from the date of lease termination by defa�clt, and shail vacate the leased land at the
end af said 90 days. A1t such property not removed within 90 days shall become the proporty of the Gl'ty.
C. In the event rentals to be paid under the teims of this lease is not paid whrn due, an additional late penalty of
1.5�10 per month shall tie added ta the amount due.
D. Upoa terminadon of this lease or expiration of the term of this lease, I.essce shall be entitled and authorized to
removc from the premises all items of personai prooerty belonging to Lessee aot perm�neatiy afiued !o the realry and
aii structures and improvements for which �o reimbursement is made under the terms of this lease.
IX. MORTCAGES
A. So long as ao dofault exists under the terms of this lease, the Lessee or any Assignee may mortgage his leasehold
estafe and improvements situated thereon to secure a loan or loans of money actually made, or that will be made, or
any extension or renewal of the same. �
B. Sucb mortgage or deed of trust shalt be in every respect subject, substrvient and subordinate to all the conditions
and covenants of this Icase.
C. In the event of a defavlt that could resvlt in the termination of this lease without reimbursement to Lessee for the
improvcmenu and siructures on ttie leased land, the City shall give notice to the mortgagee as is required to be given to
thc Lessee, and said mortgagce shal] have the right to cure said default and/or perform the terms and conditions of
this lease.
b. A mortgagee or trustee under a deed of trust shal] have the same right and power to assign this lease, in conjunc-
tion with a irustee's sale or transfer to satisfy Lessee's obligation to a mortgagce, as does the Lessee under the terms of
this iease..
E. At aay time the C�ty is to pay the Lessee for structures or improvements on ihe leased land, the �ity shall give
notice to each mortgagee of that paymeni, and said mortgagee shall have the 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 only if the mortgagee has, in writing, informed the C5ty of its in-
terest and has supplied an address for said notice.
X. OFVNERSHIP OF II1IPROVEMENFS
�ill structures and improvemencs sicuated on the leased Iand when this le<�se s entered into aze, and snal; conrinue to
be, ihe property of ihe Le,see, and all improvements hereinafter made by the Lessee on the leased land shall be the
properry of the Lessee.
XI. SUCCESSORS IN INTEREST
A. In the event of the death of a Lessee, his successors and estate shall succced to his inierest under this lease, and
those entided by law to succeed to the Lessee's interest in the lease shall continue to enjoy the righu and benefits
hereundor of the deceased Lessee;
B. En the event that the Lessee or his Assignee is adjudicated a bankrupt, said lease may be assigned as p*ovided
above, and any Assig�ee shall assume the duties and liabilities az set out above.
RII. ''VENUE
Yanue of any attion brought hereunder shall lie ezciusively in Tarrant Couaty, Texas.
XIII. NOTICE
A. Any notice requ'ued tunder this lease, unless otherwise spec�ed, shall be given by depositing in the United States
Mazi as certified mail, postage prepaid, addressed to the:
l. Lessee's or Assignee's at the address shown on tlus lease unless said I.essce or Assignee has furnished to the
G�ty, in writing; instr.sctior.s to mail .^.o�ees to znothe: sdd:ess;
2. City Manager of the G�ty of Fort Wonh, GYty Hall, Fort Worth, Texas;
3. Mortgagee at the address suppIied to the C�ty in writing for the maiIing of such notice.
_ ._. _.
X.'V. CQNi;LiJSIOPi
This inmumeat repraents the entire agreement bttwoen ihe par[ies concerning the leasing of the leased land and
shatl be binding upon and shall be to the beneft of the parties hereto; their successors, assi�s, and legal represen-
Latives, and all prior Ipses, assignments, or agreements of any nature concerning the leased land or property situated
ihereon aze superscded by the terms of this lease.
EXECUTED at Fort Worth, Tarrant County, Texaz, this
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City Attorney
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CITY OF F012T WORTFi
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BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on tlus day personai!y
appeared �"7"I1 •/' . A�---� � _, known io me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he exscuted the�same as the act and deed of the
GYty of Fort Worth, a municipaI wrporation of Tanant County Texas, and as
thereof, and for the purposes and consideradon therein expressed and in the capacity therein stated. ����
GIVEN UN�E�R�`MY HAND AND SEAL OP OFFICE this �_ �yy of �Oi �
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�STATE OF TEXAS §
COi3NTY OF TA1tRANT §
BEFORE I�fE; the undersigned authority, a Notary Public in and for the State of Texas, on this day personally
appeaze3 ::", .. rumrine s�oroth L. Cr,+.�+r�rre ,known io me to be the person whose name is
subse�S},izd`fc the.�fc;regoing instrument, and acknowlalged to me that he exeeuted the same for the purposes and con-
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si�tion [hebciri-czpfessed.
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'..:. �:�'�''t�IVEN TJL�TDF3Z M��Y HAND AND SEAL OF OFFICE this 27th �ay ot,Tanuary , A.D.
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MY ��ssion Expires:_ �ebruazv 28, 1,985
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CRAi�s �IATH�PvY�, �Np AGENT
CiTY 0� F�FiT'�C�?t�
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10/13/2020
CITY COUNCIL AGENDA
M&C Review
Official site of the City oF Foit Worth, Texas
Fox� Wo��r�
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COUNCIL ACTION: Approved on 11/8/2016
DATE: 11/8/2016 REFERENCE NO.: L-15964 LOG NAME: 21LAKESALES
CODE: L TYPE: NON-CONSENT PUBL{C 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 Cantemporaneous 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 certified appraiser; and
2. Enter into a Lease Amendment, contemporaneously with the Cantract 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 expira#ion.
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. Multipie 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 io the option Agreement conditions.
Lessees of platted and un-platted residential City-owned Lake Wor�h Lease Addition properties are
requesting to purchase the leased land on which they have put improvsments. The current residential
leases expire in 2032 and per the lease terms the City is required ta purchase improvements at fair
market value at that time. The current residential Lake Worth Lease Addition lease terms do not
authorize the sale of the land to the current lessee or the extension of the lease.
This Mayor and Council Communication will provide for current lessees of residential City-owned lots
in the Lake Worth Lease Addition whose lots meet platting conditions, and who comply with the
conditions outlined below to be eligible to purchase their leased lot fram 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 � �z
10/13/2020 M&C Review
All revenue from the sale of the land wiil 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 af Finance certifies that Property Management Depariment will be responsible for the
collection and deposit of funds.
Fund Department Account Project Program I Activity I Budget I Reference #
ID ID Year (Chartfield 2'
Fund Department Account Project Program Activity BudgE
ID ID Year
Submitted for City Manager's Office by_ Jay Chapa (5804)
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
LAKEWORTH RESIDENTIAL LEASES 8x11.pdf
Steve Cooke (5134)
Lester England {8053)
Jean Petr (8367}
Reference
Amount
unt
apps.fortworthtexas.govtcouncil_packeUmc_review.asp?ID=22991 &councildate=11/8/2016 ��2