HomeMy WebLinkAboutContract 34468-A2 CITY SECRETARY
STATE OF TEXAS § CONTRACT NO. `*�*�Oc
COUNTY OF TARRANT §
AMENDMENT NO. 2 TO CITY SECRETARY CONTRACT NO. 34468
TAX ABATEMENT AGREEMENT BETWEEN
CITY OF FORT WORTH AND LANCASTER AVENUE, LTD.
This AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 34468
("Amendment") is entered into by and between the CITY OF FORT WORTH (the "City"), a
home rule municipality organized under the laws of the State of Texas and acting by and through
Tom Higgins, its duly authorized Assistant City Manager, and LANCASTER AVENUE, LTD.
("Developer"), a Texas limited partnership acting by and through J. Waymon Levell, President
of LT Real Estate Corporation, a Texas corporation and Developer's sole general partner.
The City and Developer hereby agree that the following statements are true and correct
and constitute the basis upon which the City and Developer have entered into this Amendment:
A. The City and Developer previously entered into that certain Tax Abatement
Agreement on file in the City Secretary's Office as City Secretary Contract No. 34468, as
previously amended by that certain Amendment No. 1 to Tax Abatement Agreement on file in
the City Secretary's Office as City Secretary Contract No. 34468-A1 (the "Agreement"). The
Agreement requires Developer to expend at least $1,500,000.00 in Construction Costs to
renovate and redevelop a deteriorating commercial and retail shopping center (the "Required
Improvements") on the Land subject to Abatement, as specifically set forth in Exhibit "D" of
the Agreement. In return, Developer is eligible to receive a ten (10)-year Abatement on the Land
and any improvements located thereon, including the Required Improvements. The Agreement
requires that the Completion Date (as defined in the Agreement) for the Required Improvements
must occur by December 31, 2009 (the "Completion Deadline").
B. Developer has requested that the Completion Deadline be extended due to
unforeseen delays in constructing the Required Improvements. Due to the economic and other
public benefits that will accrue from completion of the Required Improvements, the City is
willing to amend the Agreement to accommodate Developer's request, provided that Developer
adheres to certain additional development and use requirements for the Land, as specified in this
Amendment.
C. This Amendment is authorized under § 312.208 of the Texas Tax Code because
(i)the provisions of this Amendment could have been included in the original Agreement and (ii)
this Amendment has been entered_into followin g the same procedure in which the Agreement
was approved and executed.
Page I
Amendment No. 2 to CSC No. 34468
Tax Abatement Agreement between City of Fort Worth and Lancaster Avenue,Ltd.
NOW, THEREFORE, the City and Developer, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. Exhibit "D-1" of the Agreement (Required Improvements) is hereby deleted in its
entirety and replaced with Exhibit "D-2", attached hereto and hereby made a part of this
Amendment and the Agreement for all purposes.
2. The second sentence of Section 1.2 of the Agreement (Completion of Required
Improvements) is hereby amended to read as follows:
Developer covenants and agrees that the Completion Date shall occur by April 1,
2010, unless delayed because of Force Majeure, in which case the April 1, 2010
date shall be extended by the number of days comprising the specific Force
Majeure (the "Completion Deadline").
3. The last sentence of Section 1.3 of the Agreement (Use of Land) is hereby amended to read
as follows:
As a condition precedent to Developer's right to receive any Abatement under this
Agreement, to the extent permitted by law Developer shall place, maintain and
enforce restrictive covenants excluding tattoo parlors, massage therapy businesses,
liquor and package stores, pawn shops and any other uses listed as unsupported
project types in the Oakland Corners Neighborhood Empowerment Zone Strategic
Plan, as set forth in Exhibit "E", attached hereto and hereby made a part of this
Agreement for all purposes.
4. Capitalized terms used but not identified in this Amendment shall have the same meanings
assigned to them in the Agreement.
5. Except as otherwise specifically amended in this Amendment, the Agreement shall remain
in full force and effect.
6. This Amendment contains the final written expression of the City and Developer with
respect to the subject matter hereof. This Amendment may be executed in multiple counterparts,
each of which shall be considered an original, but all of which shall constitute one instrument.
EXECUTED as of the last date indicated below:
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE]
Page 2
Amendment No. 2 to CSC No. 34468
Tax Abatement Agreement between City of Fort Worth and Lancaster Avenue,Ltd.
CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY:
By: C By:
Tom Higgins Peter Vaky
Assistant City Manager Assistant City Attorney
Date: Al/sX° M & C: C-23 999 12-15--D 9
ATTEST:
o°°°ooa000 Q
By:
City Secretary d o 0
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0000000 G1
LANCASTER AVENUE,LTD:
By: LT Real Estate Corporation,
a Texas corporation and its
sole general paAner. '
By:
C re ell
/Preside,/
Date:ah _
ATTEST:/
/Z
Page 3
Amendment No. 2 to CSC No. 34468
'Fax Abatement Agreement between City of Fort Worth and Lancaster Avenue,Ltd.
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Tom
Higgins, Assistant City Manager of the CITY OF FORT WORTH, a municipal
corporation organized under the laws of the State of Texas, known to me to be the person
and officer whose name is subscribed to the foregoing instrument, and acknowledged to me
that the same was the act of the CITY OF FORT WORTH, that he was duly authorized to
perform the same by appropriate resolution of the City Council of the City of Fort Worth
and that he executed the same as the act of the 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
JLI 2010.
MARIA S.SANCHEZ
Not y Public in and for MY COMMISSIQN EXPIRES
the State of Texas '';;,P ,'' December 14,2013
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared J.
Waymon Levell, President of LT Real Estate Corporation, the sole general partner of
LANCASTER AVENUE, LTD. known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as the act
and deed of LANCASTER AVENUE, LTD.
GIVEN ` UNDER MY HAND AND SEAL OF OFFICE this
day of , 2010.
Notary Public in and for
the State of Texas =DEBBIE BBS ic s 07-2011
Notary's Printed Name
Amendment No. 2 to CSC No. 34468
Tax Abatement Agreement between City of Fort Worth and Lancaster Avenue,Ltd.
Exhibit"D-2"
Required Improvements
The Required Improvements consists of the following:
i. Renovation of approximately 39,000 square feet of the Oakland Corners
Shopping Center located at 4217 E. Lancaster, the entirety of which must have at
least a temporary certificate of occupancy by the Completion Deadline.
2. Construction of a new commercial use building of approximately 5,000 square
feet on the Out-Parcel Site, the entirety of which must have a final certificate of
occupancy by the Completion Deadline.
3. Demolition and clearance of an existing 2,500 square foot building located at
4235 E. Lancaster.
4. Construction of a shell building on the site of the former auto shop, as depicted in
the map attached hereto, whose fagade is flush or even with the fagade of the
Oakland Corners Shopping Center at 4217 E. Lancaster, substantially in
accordance with the elevation attached hereto as Exhibit "D-2(a)", which is
hereby made a part of this Agreement for all purposes, the securing of all City
inspection permits for such site and building, and the recording of a new plat for
such site that is acceptable to the City.
The use of the Land must be consistent with current zoning classification applicable to
the Land and comply with Section 1.3 of this Agreement, including the placement of
deed restrictions regarding the prohibited uses set forth in Section 1.3.
Amendment No. 2 to CSC No. 34468
Tax Abatement Agreement between City of Fort Worth and Lancaster Avenue. Ltd.
Exhibit "E"
List of Prohibited Uses Classified as
Unsupported Project Types in the Oakland Corners
Neighborhood Empowerment Zone Strategic Plan
(in Addition to Any Other Prohibited Uses Specified by Section 1.3 of Agreement)
Amendment No. 2 to CSC No. 34468
Tax Abatement Agreement between City of Fort Worth and Lancaster Avenuc, Ltd.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/15/2009
DATE: Tuesday, December 15, 2009 REFERENCE NO.: C-23999
LOG NAME: 170AKLAND CORNERS EDI TA AMENDMENTS
SUBJECT:
Authorize Amendment No. 2 to City Secretary Contract Nos. 34468 and 35603,Tax Abatement and
Economic Development Program Agreements with Lancaster Avenue,Ltd., to Extend Deadlines Relating to
Redevelopment on the Northeast Corner of the 4200 Block of East Lancaster and Oakland Boulevard in the
Oakland Corners Urban Village
RECOMMENDATION:
It is recommended that the City Council authorize the City
Manager to execute Amendment No. 2 to City Secretary Contract
Nos. 34468 (Tax Abatement Agreement) and 35603 (Economic
Development Program Agreement)with Lancaster Avenue,Ltd., in
order to extend deadlines relating to the redevelopment and scope
of work schedule of individual buildings located at the northeast
corner of the 4200 Block of East Lancaster and Oakland Boulevard
in the Oakland Corners Urban Village.
DISCUSSION:
On August 29, 2006,the City Council authorized the execution of
City Secretary Contract No. 34468, a 10 year Tax Abatement
Agreement with Lancaster Avenue,Ltd., (Developer)for the
redevelopment of a 42,000 square foot shopping center located at
northeast corner of the 4200 block of East Lancaster Avenue and
Oakland Boulevard(the Project). On July 17, 2007,the City
Council authorized execution of City Secretary Contract No.
35603, an Economic Development Program Agreement with the
Developer for use of United States Department of Housing and
Urban Development(HUD)Economic Development Initiative
(EDI) grant funds of$198,000.00 for the Project. Both Agreements
provide that the Developer will invest at minimum, $1.5 million
into the renovation project of the 42,000 square foot Oakland
Shopping Center and cause new construction on the former
Grandy's out—parcel pad site of an approximately 3,500 square foot
building for commercial and/or retail located in the Project Area,
being the 4200 block of East Lancaster Avenue in the northeast
corner of the intersection of Lancaster Avenue and Oakland
Boulevard.
On December 16, 2008, because of unforeseen delays in obtaining
the Grandy' s outparcel and the downturn in economic market
conditions, the City Council authorized execution of City Secretary
Contract Nos. 34468—A 1 and 35603—A 1, which amended both
Agreements by extending the deadlines for completion of the
Project to December 31, 2009. Additionally,the scope of work was
expanded to include the possible demolition of a roughly 2,500
square foot dilapidated building located at the southeastern corner
of the project area.
To date, the Developer has invested more than$2.6 million and has
met approximately 22 percent of the tax abatement's
Minority/Women Business Enterprise(M/WBE)commitment and
is on track to fulfill the 25 percent commitment.
Due to the continued downturn of economic conditions and the
need to replat the former auto shop parcel located at the
northeastern corner of the shopping center which is currently in
process. The Developer does not expect to be able to complete the
Project by December 31,2009,and has requested that both the Tax
Abatement Agreement and Economic Development Program
Agreement be amended to extend the Project completion deadline
to April 1, 2010.
Since the Developer has invested approximately$2.6 million, 1.7
times the minimum, in required improvements and has completed
85 percent of the Project, staff is agreeable to this request,provided
that the Developer complies with the following:
1. On the former auto shop site cause the construction of a shell
building whose fagade is flush or even to the shopping center(see
attached elevation);
2. Record a new plat for the auto shop site; and
3. Utilize and maintain project types/uses described in the Oakland
Corners Neighborhood Empowerment Zone Strategic Plan(see
attachment) for the Project area and the former Grandy's parcel.
If the first and second contingencies described above are not
completed by April 1, 2010, and/or if the Neighborhood
Empowerment Zone Strategic Plan is not adhered to by the
Developer or its subsequent tenant/lessee, the Developer will be in
default and the City will have the right to terminate both
Agreements.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION:
The Financial Management Services Director certifies that this
action will have no material effect on City funds.
FUND CENTERS:
TO Fund/Account/Centers FROM Fund/Account/Centers
CERTIFICATIONS:
Submitted for City Manager's Office by: Thomas Higgins (6140)
Originating Department Head: Jay Chapa (7540)
Additional Information Contact: Dolores Garza (2639)
Cynthia Garcia (8187)
ATTACHMENTS
1. 170akland Corners NEZ Strategic Plan 1-6-09.12df
2. Oakland Corners MU-1 zoning,pnt
3. South Elevation.doc