HomeMy WebLinkAboutContract 16815 CITY SECRETARY
CONTRACT. 110..162a
AMENDMENT TO OPTION TO PURCHASE LAND
This Amendment to Option to Purchase Land (the
"Amendment") is entered into by and between the City of Fort
Worth, a municipal corporation, (herein "Fort Worth" ) , and
CentrePort Joint Venture, a joint venture (herein
"CentrePort") .
R E C I T A L S:
A. On June 5, 1980, the parties hereto entered into
that certain Option to Purchase Land (the "Original Option")
pursuant to which Fort Worth granted to CentrePort an option
for the purchase of certain real property then owned by Fort
Worth and located in Tarrant and Dallas Counties, Texas,
commonly known as the "Greater Southwest International
Airport" . The Original Option is recorded in Volume 6943,
Page 893 of the Deed Records, Tarrant County, Texas and in
Volume 80126, Page 0777 of the Deed Records of Dallas County,
Texas, to which reference is hereby made for all purposes.
B. On April 23, 1983, the Original Option was modified
as part of a Lease Termination Agreement (herein so called)
executed among Fort Worth, CentrePort and American Airlines,
Inc. , to which reference is hereby also made for all
purposes.
C. The parties hereto wish to further amend the
Original Option to extend the Option Period through June 5',
1998; to modify the schedule of Option Payments; to increase
the interest factor in the Original Option from seven and
one-half percent (7.50) to eight percent (80) ; and to provide
for Fort Worth's use of the proceeds of one of the Option
Payments for needed repairs' to a portion of Trinity
Boulevard.
NOW, THEREFORE, for and in consideration of the premises
and the mutual benefits to accrue to each of the parties
hereto, the parties have agreed and do hereby further amend
the Original Option as follows:
1. Unless expressly stated otherwise, all capitalized
terms used herein shall have the same meaning as ascribed to
them in the Original Option.
2. The Option Period referred to in Paragraph 1 of the
Original Option shall be extended for an additional six (6)
years to June 5, 1998.
3. Effective as of June 5, 1988 and forward, the
"seven and one-half percent (7.5%) per annum" rate of
increase in the Purchase Price referred to in the second
sentence of Paragraph 2 of the Original Option shall be
changed to "eight percent (8%) per annum" .
4.' Attached hereto as Exhibit "B" and incorporated
herein by reference is an amended schedule for the Purchase
Price on the Option Date and the Deferred Purchase Price on
each Option Anniversary Date thereafter during the Option
Period as extended hereby and using an eight percent (8%) per
annum rate of increase in the Purchase Price after June 5,
1988. This Exhibit "B" shall be substituted for Exhibit "B"
to the Original Option.
5. The parties hereto acknowledge that all Option
Payments are current through June 5, 1988. In order to keep
this Option in force, CentrePort shall make future Option
Payments to Fort Worth as follows:
(a) Contemporaneously with the execution of this
Amendment, CentrePort shall pay to Fort Worth the sum of
One Million Four Hundred Thirty Four Thousand One
Hundred Ninety Three and no/100 ($1,434, 193.00) .
(b) Commencing on June 5, 1989, and continuing on
each Option Anniversary Date thereafter through and
including June 5, 1997, CentrePort shall pay to Fort
Worth the sum of One Million Four Hundred Thirty Four
Thousand One Hundred Ninety Three and no/100
($1,434, 193.00) .
(c) On June 5, 1998, CentrePort shall pay to Fort
Worth the sum of Six Hundred Eleven Thousand Two Hundred
Twenty Four and no/100 Dollars ($611,224.00) .
This schedule of Option Payments shall be substituted for the
schedule of Option Payments set forth in Paragraph 3 of the
Original Option.
6. Effective as of June 5, 1988 and forward, the
"seven and one-half percent (7. 5%) discount factor" referred
to in the third sentence of Paragraph 4 of the Original
Option shall be changed to an "eight percent (8%) discount
factor" .
7. Effective as of June 5, 1988 and forward, the rate
of "seven and one-half percent (7.5%) per annum" used in
computing the increase in the amount of credit available to
apply toward the Deferred Purchase Price or the Deferred
Takedown Price referred to in the fifth sentence of Paragraph
4 of the Original Option shall be changed to "eight percent
(8%) per annum" .
8. Attached hereto as Exhibit "C" and incorporated
herein by reference is a revised schedule showing the
accumulation of credits available for application toward the
Deferred Purchase Price and/or the Deferred Takedown Price
over the extended Option Period, using the revised schedule
of Option Payments and using an increase factor of eight
percent (8%) per annum from and after June 5, 1988. This
Exhibit "C" shall be substituted for Exhibit "C" to the
Original Option.
9. Effective as of June 5, 1988 and forward, the rate
of "seven and one-half percent (7.5%) per annum" used to
arrive at the Deferred Takedown Price referred to in the
fourth sentence of Paragraph 5(a) (1) of the Original Option
shall be changed to "eight percent (8%) per annum" .
10. Effective as of June 5, 1988 and forward, the rate
of "seven and one-half percent (7.5%) per annum" used to
arrive at the Deferred Takedown Price referred to in the
i
fourth sentence of Paragraph 5(b) (1) of the Original Option
shall be changed to "eight percent (8%) per annum" .
11. The Option Payment of One Million Four Hundred
Thirty Four Thousand One Hundred Ninety Three and no/100
($1,434, 193.00) referred to in Paragraph 5(a) of this
Amendment shall be set aside by Fort Worth to pay for the
needed repairs to the portion of Trinity Boulevard east of
Highway 360 as it passes through the Property. The plans and
specifications for the repair work will be subject to the
mutual approval of CentrePort and Fort Worth and shall be
sufficient to bring that portion of Trinity Boulevard up to
the standard required for comparably constructed roadways
within the City of Fort Worth. Upon the mutual approval of
the plans and specifications, the repair work shall be
immediately placed out to bid and completed as soon as
possible. All costs of the repairs shall be paid by Fort
Worth.
12. Except as amended hereby, the Original Option as
previously modified by the Lease Termination Agreement shall
remain unchanged and in full force and effect.
This Amendment is made effective as of June 5, 1988.
CITY OF FORT WORTH, TEXAS
ATTEST:
ivG� - By:
City Secretary Bob Bolen, Mayor
Fort Worth, Texas
Approved as to Form ;TM NTURE
and Legality: ENT CO. , INC.
t ak y:
Fort Worth City Attorney ce President
ct Authorppization
STATE OF TEXAS § 1\-22- O�
§ Date
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, a Notary Public in
and for the State of Texas; on this day personally appeared
BOB BOLEN, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to
me that the same was the act of the City of Fort Worth and
that he executed the same as the act of said City of Fort
Worth for the purposes and consideration therein expressed
and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this �= day
of �=�1�A= A.D. 1988.
NO RY PUBLIC, STATE OF TEXAS
My c mm}ssion expires: r 's name printed:
STATE OF TEXAS §
§
COUNTY OF DALLAS §
BEFORE ME, the undersigned authority, a Notary Public in
and for the State of Texas, on this day personally appeared
L, $,t,o�., known to me to be the person whose name
is sub cribed to _the foregoing instrument, and acknowledged
to me that the same was the act of Centre Development Co. ,
Inc. , as Attorney-in-Fact for CENTREPORT JOINT VENTURE, a
Texas joint venture, and that he executed the same as the
act of said CENTREPORT JOINT VENTURE for the purposes and
consideration therein expressed and in the capacity therein
stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day
of le ce rrn.b ,(_ A.D. 19 8 8.
NOTARY PUBLIC, _S ATE OF TEXAS
My commission expires: Notary' s name printed:
r.......r...r-.s---
()0 ROBIN L. STEINER t�
S Notary Public. State of Texas tS
S ' a�a+ My Commission Expires 9.09$l
yr....-...-..i-...-..i-...-....--.1- ---'i
EXHIBIT "B"
SCHEDULE OF PURCHASE PRICE ON OPTION DATE AND
THE DEFERRED PURCHASE PRICE ON EACH OPTION ANNIVERSARY DATE
(Average for Total Project Based Upon 1,222 Acres)
Total Purchase Per Acre
Price Purchase Price
At Option Date: $ 14,820,000 $ 12, 128
End of Year After
Option Date: 1) $ 15,931,500 $ 13,037
2) 17, 126,363 14,015
3) 18,410,840 15,066
4) 19,791,653 16, 196
51 21,276,027 17,411
6) 22,871,729 18,717
7) 24,587, 108 20,120
8) 26,431, 141 21,629
9) 28,545,632 23,360
10) 30,829,283 25,229
11) 33,295,625 27,247
12) 35,959,276 29,427
13) 38,836,018 31,781
14) 41,942,899 34,323
15) 45,298,331 37,069
16) 48,.922, 197 40,035
17) 52,835,973 43,237
18) 57,062,851 46,696
EXHIBIT "C"
Accumulation of Credits Available for Application Toward
Deferred Purchase Price and/or Deferred Takedown Price.
The following schedule shows the Deferred Purchase
Price calculation if CentrePort desires to take down balance
of entire Property in any one year. This schedule is based
upon the assumption that the takedown is made at end of the
year and the credit was calculated prior to payment at the
end of the year being made. This schedule assumes a Purchase
Price of $14,820,000 at Option Date.
Net Amount Due
To Purchase Entire
Purchase Property at End of
Price Credit Year
End of
Year: 1) $ 15,931,500 $ 15,931,500
2) 17, 126,363 1,541,758 15,584,605
3) 18,410,840 3, 199, 147 15,211,693
4) 19,791,653 4,980,841 14,810,812
5) 21,276,027 6,896, 162 14,379,865
6) 22,871,729 8,955, 132 13,916,597
7) 24,587, 108 11, 168,524 13,418,584
8) 26,431, 141 13,547,921 12,883,220
9) 28,545,632 17,661,870 10,883,762
10) 30,829,283 20,550,928 10,278,355
11) 33,295,625 23,665,649 9,629,976
12) 35,959,276 27,023,677 8,935,599
13) 38,836,018 30,644,035 8, 191,983
14) 41,942,899 34,547,237 7,395,662
15) 45,298,331 38,755,402 6,542,929
16) 48,922, 197 43,292,380 5,629,817
17) 52,835,973 48, 183,886 4,652,087
18) 57,062,851 53,457,653 3,605, 198
The following schedule shows Amounts Paid to Date, Net
Amounts Due and Maximum Dollars Paid if CentrePort takes down
balance of entire Property in any one year. This Schedule C
is based upon the same assumptions as in the above schedule.
Amount Paid Maximum
To Date Net Due Amount Paid
End of
Year: 1) $ $ 15,931,500 $ 15,931,500
2) 1,434, 193 15,584,605 17,018,798
3) 2,868,386 15,211,693 18,080,079
4) 4,302,579 14,810,812 19, 113,391
5) 5,736,772 14,379,865 20, 116,637
6) 7, 170,965 13,916,597 21,087,562
7) 8,605, 158 13,418,584 22,023,742
8) 10,039,351 12,883,220 22,922,571
9) 11,473,544 10,883,762 22,357,306
10) 12,907,737 10,278,355 23, 186,092
11) 14,341,930 9,629,976 23,971,906
12) 15,776, 123 8,935,599 24,711,722
13) 17,210,316 8, 191,983 25,402,299
14) 18,644,509 7,395,662 26,040, 171
15) 20,078,702 6,542,929 26,621,631
16) 21,512,895 5,629,817 27, 142,712
17) 22,947,088 4,652,087 27,599, 175
18) 23,558,312 3,605, 198 27, 163,510
EXHIBIT "C"
City of' Fort Worth, exas
Mayor and Council Communication
DATE REFERENCE SUBJECT: AMENDMENT TO OPTION TO PAGE
NUMBER PURCHASE LAND BETWEEN CITY AND 2
11-22-88 C-11321
CENTREPORT JOINT VENTURE
Recommendation :
It is recommended that the City Council authorize the City Manager to sign an
Amendment to an Option to Purchase Land between the City and CentrePort Joint
Venture ( City Secretary Contract No . 11107) , such amendment to contain the
provisions set forth below.
Background :
On June 5 , 1980, the City, as Seller, and CentrePort Joint Venture, as
Purchaser, eKecuted an option to purchase land at the GSIA site . The
adjusted cash price at closing was $14, 775,541 . With the purchase price
escalating at 7.50% per year, the adjusted deferred purchase price at the end
of twelve years was calculated to be $26,517,054. The agreement provided for
an immediate option payment of $1,500,000, with annual contract payments
beginning in June of 1981. For the first nine years, the City is to receive
an annual contract payment of $1,434,193; for the last three years , the City
will receive annual contract payments of$4,181,306. The City also receives
an annual possession fee of $100 per acre of land not yet purchased . The
possession fee received by the City decreases as land is -taken down .
CentrePort has recently contacted the City Manager's office concerning the
deterioration of paving on Trinity Boulevard east of Highway 360 and adjacent
to the GSIA property. CentrePort states that the condition of Trinity
Boulevard has a negative impact on the marketing of the GSIA property. Cost
estimates for the repairs range from $800,000 to $1,300,000. Because of the
City' s lack of current funds to finance the repairs, CentrePort has suggested
that funds be made available through a restructuring and extension of the
Option Agreement . The proposed amendment to the agreement contains the
following provisions:
1. CentrePort Joint Venture wi I I make an accelerated option payment of
$1,434, 193. to be used by the City to pay for the needed repairs to
Trinity Boulevard . The City will bid out, supervise and complete the
work as soon as possible in accordance with City specifications.
2. The interest rate under the option agreement will be increased from
7-1/2% to 8%. This rate is used to determine the amount of the price
increase and the credits available against the purchase price, deferred
purchase price and deferred takedown price of the property. The option
period will be extended from its present expiration date of June 5, 1998.
The annual option payments of $1,434,193 will continue each June 5
through 1997 with a final payment on June 5, 1998 of $611,224.
DAZE REFERCNCE suiurCT: AMENDMENT TO OPTION TO PAGE
NLJV13ER PURCHASE LAND BETWEEN CITY AND 2 2
11-22-88—- C-11321 CENTREPORT JOINT VENTURE of
Under this proposal , funds would be available to repair Trinity Boulevard
without affecting the City's current budget and without any interruption of
the current annual option payments . The City Manager believes that this
proposal would be in the best interest of both the City and CentrePort , and
recommends its approval .
Financing :
The proposed amendment does riot require the appropriation of funds at this
time.
mmc#4
APPROVED BY
CITY COUNCIL
NOV 22 1988
City S40retmvs of the
Qitv of koxt wxtk TQxQ8
SUBMITTED FOR THE DISPOSITION BY COUNCIL: PROCESSED BY
CITY MANAGER'S
UFFICE BY: David Ivory APPROVED
ORIGINATING OTHER (DESCRIBE)
DEPARTMENT HEAD: Wade Adkins CITY SECRETARY
FOR ADDITIONAL INFORMATION
CONTACT: W. Adkins 7606 DATE