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HomeMy WebLinkAboutContract 30412 CITY SECRETARY CONTRACT NO. COUNTY OF TARRANT § STATE OF TEXAS § OPTION TO PURCHASE AND PURCHASE AGREEMENT THIS OPTION to Purchase ("Option") dated AUcyMf , 2004 is between the City of Fort Worth, a home rule municipality, ("Seller"), actiW through Ma rc A. Ott its duly authorized Assistant City Manager andT{, ("Purchaser"). WHEREAS Seller is the owner of property within 5000 feet of Lake Worth; and WHEREAS Section 272.001 of the Texas Local Government Codes, Subsection (h), provides that a municipality with a population of 575,000 or less and owning land within 5,000 feet of the shoreline of a lake may sell the land to the person leasing the land for the fair market value of the land without the solicitation of bids; and WHEREAS Purchaser leases property from Seller, such Property more particularly described on Exhibit "A", attached hereto and incorporated herein by reference ("the Property"); and WHEREAS, Purchaser desires to purchase the Property from Seller and desires to obtain an option to purchase the Property; and WHEREAS the City Council of the City of Fort Worth has adopted a policy in which the property surrounding Lake Worth can only be sold when it is connected to the City of Fort Worth water or sewer system or when it is connected to a municipal water or sewer system; and WHEREAS, it is anticipated that it may take up to 10 years for the Property to be connected to the City of Fort Worth water or sewer system. NOW THEREFORE, the parties agree as follows: �— Grant of Option OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 1 of 26 February 3,2004 �� , 1� qq I For the consideration expressed in Paragraph 4 of this Contract, Seller hereby grants Purchaser, its successors and assigns the exclusive right to purchase the Property subject to the terms set forth in this Agreement. 2. Term/Termination A. So long as this Option Agreement is not terminated under Section 2.B., this Option shall expire on October 31, 2013, or one year after Purchaser receives a "Sewer Connection Notice" as defined in Paragraph 6, or one year after Purchaser gives a "Purchaser's Notice" as defined in Paragraph 6,whichever is sooner. IF PURCHASER DOES NOT RECEIVE A SEWER CONNECTION NOTICE AND HAS NOT GIVEN SELLER A PURCHASER'S NOTICE BY MAY 31, 2013, PURCHASER MUST EXERCISE HIS OPTION TO PURCHASE THE PROPERTY BY JUNE 30, 2013. IF PURCHASER FAILS TO PURCHASE THE PROPERTY BY JUNE 30, 2013, THIS OPTION SHALL AUTOMATICALLY TERMINATE AND PURCHASER SHALL NOT HAVE ANY RECOURSE AGAINST SELLER AND PURCHASER SHALL NOT BE ENTITLED TO ANY DAMAGES AGAINST SELLER. IF PURCHASER RECEIVES A SEWER CONNECTION NOTICE OR GIVES SELLER A PURCHASER'S NOTICE, PURCHASER MUST SATISFY ALL OF THE CONDITIONS SET FORTH IN PARAGRAPH 3 AND COMPLETE THE PURCHASE OF THE PROPERTY WITHIN ONE YEAR OF RECEIVING THE SEWER CONNECTION NOTICE OR GIVING PURCHASER'S NOTICE. IF PURCHASER FAILS TO SATISFY ALL OF THE CONDITIONS IN PARAGRAPH 3 AND FAILS TO COMPLETE THE PURCHASE OF THE PROPERTY WITHIN ONE YEAR OF RECEIVING THE SEWER CONNECTION NOTICE OR GIVING PURCHASER'S NOTICE, THIS OPTION SHALL AUTOMATICALLY TERMINATE AND PURCHASER SHALL NOT HAVE ANY RECOURSE AGAINST SELLER AND PURCHASER SHALL NOT BE ENTITLED TO ANY DAMAGES AGAINST SELLER. B. If the Purchaser's Lease on the Property is terminated as provided under the terms of the Lease Agreement, this Option shall automatically terminate and the Option Fee shall not be refunded. If this Option is terminated under this section, Purchaser shall OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 2 of 26 February 3,2004 not have any recourse against Seller and Purchaser shall not be entitled to any damages against Seller. 3. Conditions Necessary to Exercise A. If Purchaser receives a Sewer Connection Notice or gives Purchaser's Notice prior to September 30, 2013 and desires to exercise Purchaser's option to purchase the Property, Purchaser must satisfy all the following conditions: (1) if the system available for connection is a City of Fort Worth Sewer System or Seller sends a "Sewer Design Notice" to Purchaser, a Tap Fee and Impact Fee associated with connecting the Property to the City of Fort Worth Sewer System must be paid in full. The actual amount of the Tap Fee and the Impact Fee will be the amount set and approved by the Fort Worth City Council at the time the Option is exercised; (2) the Property must be connected to either the City of Fort Worth water system, or the City of Fort Worth sewer system, a municipal water system or a municipal sewer system; (3) all taxes on the Property are current and not in a delinquent status; (4) all payments or money due to the City of Fort Worth must be current and not in a delinquent status, "payments" and "money due" includes, but is not limited to lease payments, garbage fees and water and sewer fees; (5) all the liens on the Property securing any indebtedness to Seller must be paid and released; (6) the Property has been platted by the City of Fort Worth since 1990 and Purchaser has accepted the description of the Property as shown on the most recent recorded plat filed by the City of Fort Worth; and (7) the Property is not served by a septic tank or a drainage field off the Property. B. In order to exercise Purchaser's Option to purchase the Property, Purchaser must satisfy or be in compliance with the conditions set forth in Paragraph 3 A above within one year of receiving a Sewer Connection Notice from Seller or sending a Purchaser Notice to Seller. OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 3 of 25 February 3,2004 4. Option Fee In consideration of the granting of this Option, Purchaser shall pay Seller five hundred dollars within ninety days from the date this Option is sent to Purchaser by certified mail. The failure of Purchaser to pay the option fee by the date designated shall cause this agreement to immediately terminate. 5. Purchase Price of the Property A. In consideration of the payment of the option fee, in order to purchase the Property, the Purchase price shall be the fair market value of the Property as determined by an independent appraiser B. The year 2000 is the base year to determine the fair market value. The valuation from 2001 through 2013 shall increase at a compounded rate of 2% per year as shown on Exhibit "B". C. Fair market value of the Property for the base year as determined by an independent appraiser is as follows: Any land above the 601' contour line will be sold for $.65 per square foot. Any land below the 601' contour line and above the 594' contour line will be sold for $.35 per square foot. The contour lines will be based upon a plat filed by the City of Fort Worth as recorded in the Tarrant County Deed Records. D. The Option fee will be credited towards the purchase price. 6. Sewer Connection A. Seller shall give Purchaser written notice of its intent ("Sewer Design Notice") to begin the design of the sewer system that will serve the Property. In such Sewer Design Notice, Seller shall give Purchaser the opportunity to meet with the City of Fort Worth staff to review the location where the sewer system connection will be located. OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 4 of 26 February 3,2004 B. Once the Property can be connected to the City of Fort Worth or municipal sewer system, Seller shall send Purchaser written notice ("Sewer Connection Notice") specifying that it is the Sewer Connection Notice provided for in this agreement, the date of such notice and that the City of Fort Worth or municipal sewer system is available for Purchaser's connection. C. Once the property can be or is connected to a City of Fort Worth water system, a municipal water system or to a municipal sewer system supplied by a municipality other than the City of Fort Worth, Purchaser may send Seller written notice (Purchaser's Notice), specifying that it is the Purchaser's Notice provided for in this agreement, the date of such notice,the water or sewer system that the property is or can be connected to, and the municipality providing the water or sewer system that is available for Purchaser's connection or to which Purchaser had previously connected. If Purchaser's septic system incorporates a septic tank or drainage field that is not located on the Property, Purchaser cannot send Seller a Purchaser's Notice unless the property is connected to a City of Fort Worth or municipal sewer system. D. Sewer connection will be made to either a gravity city sewer (Type 1&2) or a low- pressure city sewer (Type 3) as shown on Exhibit "D". Type 1&2 gravity connections will be provided at the property line by the City. Purchaser will be responsible for installation of all plumbing from the house to the tap at the property line and abandonment of existing septic tanks in accordance with the City plumbing code. Type 3 sewer connections to a low-pressure system will be provided to the point of the grinder pump installation. The City will maintain the grinder pump and all plumbing between the grinder pump and the City main as part of the City sewer system. The Purchaser agrees to grant the City an easement in order to maintain the Grinder Pump system. Purchaser agrees to pay an additional fee for the maintenance of the Grinder Pump after the 5-year factory warranty on grinder pump expires. The Purchaser must install the necessary electrical connection, and plumbing from the house to the grinder pump location ("Purchaser Improvements") concurrent with the grinder pump installation by the City. Within 180 days of the grinder pump being installed, Purchaser shall abandon the existing septic tank(s). The grinder pump will not be installed until the Purchaser Improvements have been completed and approved by the City of Fort Worth. All private plumbing/electrical improvements must meet applicable City of Fort Worth codes. The Seller will pay for the grinder pump and the installation of the grinder pump if Purchaser makes all of Purchaser Improvements within one year of the Sewer OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 5 of 26 February 3,2004 f Connection Notice. PURCHASER ACKNOWLEDGES AND AGREES THAT IF THE PURCHASER DOES NOT MAKE THE PRIVATE IMPROVEMENTS WITHIN ONE YEAR OF THE SEWER CONNECTION NOTICE, THE SELLER SHALL NOT PAY FOR THE GRINDER PUMP OR PAY FOR THE INSTALLATION. E. Purchaser shall connect the Property to the sewer system and abandon all septic systems on the property within one year of receiving the Sewer Connection Notice. All costs of the installation and connection to the sewer system and the abandonment of the septic system shall be paid by Purchaser as outlined above in section 61). 7. Closing A. The closing of this transaction shall take place at the offices of a Title Company in Tarrant County at the earlier of: 1. Within one year of the date in which Seller sends the Sewer Connection Notice to Purchaser and Purchaser has satisfied all of the conditions set forth in Paragraph 3. In order to close, Purchaser must have satisfied all of the conditions set forth in Paragraph 3 "Conditions Necessary to Exercise" within one year of the Sewer Connection Notice being sent by Seller to Purchaser; or 2. Within one year of the date in which Purchaser sends Purchaser's Notice to Seller and Purchaser has satisfied all of the conditions set forth in Paragraph 3. In order to close, Purchaser must have satisfied all of the conditions set forth in Paragraph 3 "Conditions Necessary to Exercise" within one year of the Purchaser's Notice being sent by Purchaser to Seller; or 3. By October 31, 2013 if Seller does not send a Sewer Connection Notice to Purchaser by September 30, 2013 and Purchaser does not send a Purchaser's Notice to Seller prior to September 30, 2013 B. The Title Company will be selected by Purchaser. OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 6 of 26 February 3,2004 C. At Closing the following shall occur, each of which shall be a concurrent condition to the Closing: 1. Seller shall deliver to Purchaser a duly executed and acknowledged deed in a form sufficient to convey title to the Property to Purchaser, and the deed shall include an avigation easement and an easement for Purchaser's use of the lake, in the form attached hereto as Exhibit "C"; 2. Purchaser shall pay to Seller the Purchase Price by cashier check or wire transfer to a bank account of which Seller has notified Purchaser at least twenty-four hours prior to closing; and 3. Purchaser shall pay to Seller the Tap and Impact Fees required under Paragraph 3 and associated with connecting the Property to the City of Fort Worth Sewer System by cashier check or wire transfer to a bank account of which Seller has notified Purchaser at least twenty-four hours prior to closing. 8. Costs All closing costs, costs for a title policy and any other cost accrued or charged relating to the closing of this transaction shall be paid by Purchaser. 9. Termination A. If Purchaser fails to satisfy the conditions necessary to exercise the Option and exercise this Option Agreement within the time frame specified in this agreement, then the Option and the rights contained in this Agreement shall automatically and immediately terminate without notice to Purchaser. Purchaser acknowledges and agrees that Seller will execute and record such documents as it deems necessary to demonstrate such termination of this Agreement. B. If Purchaser fails to accept Seller's plat as required in Section 3(6), then the Option and the rights contained in this Agreement shall automatically and immediately terminate. Purchaser acknowledges and agrees that Seller will record such documents as it deems necessary to demonstrate such termination of this Agreement. OPTION TO PURCHASE AND PURCHASE AGREEMENT Fg�ef 26• February 3,2004 C. In the event that a taking or condemnation of the Leased Premises is sought by the City of Fort Worth and/or the Texas Department of Transportation, in whole or in part, this Option shall immediately terminate and the option fee will be refunded. D. So long as Purchaser's Lease is not terminated under the provisions of the Lease, Seller acknowledges that Purchaser's lease shall continue in full force and effect for the term of the Lease, and that the terms and provision of this Option do not modify, amend or in any manner affect the Lease or terms thereof. Purchaser acknowledges and agrees that in the event this Option terminates, Seller shall have the right to sell the Property, subject to all terms and provision of Purchaser's Lease, in any manner allowed under law. 10. Assignment of Option A. Purchaser may assign the Option and its rights under this Option Agreement on the condition that: 1. Assignee assumes all of the Purchaser's obligations under this Agreement in writing; 2. The Assignment is in conjunction with an Assignment of the Lease Agreement covering the property; and 3. The Assignment of the Lease Agreement is in accordance with the procedure and requirements provided in the Lease Agreement. B. Any assignment that does not satisfy all of the above conditions is null and void. 11. Notices Unless otherwise provided herein, any notice, tender or delivery to be given hereunder by either party to the other may be effected by personal delivery in writing or by certified mail, postage prepaid, return receipt requested, and shall be deemed received as of actual receipt. Mailed notices shall be addressed as set forth below, but each party may change his or her address by written notice in accordance with this Paragraph: OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 8 of 26 February 3,2004 to Sellers: City of Fort Worth Real Property 927 Taylor Fort Worth, Texas 76102 with a copy to: City of Fort Worth City Attorney's Office 1000 Throckinorton Fort Worth, Texas 76102 to Purchasers: 12. Entire Agreement This Agreement contains the entire agreement between the parties relating to the Option herein granted and the sales agreement. Any oral representation or modification concerning this Option and sales agreement shall be of no force and effect, excepting a subsequent modification in writing, signed by the parties. This agreement is separate from and does not modify the lease agreement. 13. Binding Effect This option granted herein shall bind and inure to the benefit of all the respective heirs, personal representatives, successors, and assigns of the parties hereto. 14. No Representations or Warranties OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 9 of 26 February 3,2004 NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR IN ANY EXHIBIT ATTACHED HERETO, IT IS UNDERSTOOD AND AGREED THAT THE PROPERTY IS BEING SOLD AND CONVEYED HEREUNDER "AS IS" WITH ANY AND ALL FAULTS AND LATENT AND PATENT DEFECTS AND WITHOUT ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY BY SELLER EXCEPT AS EXPRESSLY SET FORTH HEREIN. SELLER HAS NOT MADE AND DOES NOT MAKE AND HEREBY SPECIFICALLY DISCLAIMS (EXCEPT AS EXPRESSLY SET FORTH HEREIN) ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR CHARACTER WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTY (OTHER THAN SELLER'S SPECIAL WARRANTY OF TITLE CONTAINED IN THE WARRANTY DEED TO BE DELIVERED AT CLOSING), ITS CONDITION (INCLUDING WITHOUT LIMITATION ANY REPRESENTATION OR WARRANTY REGARDING QUALITY OF CONSTRUCTION, STATE OF REPAIR, WORKMANSHIP, MERCHANTABILITY, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE), ITS COMPLIANCE WITH ENVIRONMENTAL LAWS OR OTHER LAWS, AVAILABILITY OF ACCESS, INGRESS OR EGRESS, INCOME TO BE DERIVED THERE FROM OR EXPENSES TO BE INCURRED WITH RESPECT THERETO, THE OBLIGATIONS, RESPONSIBILITIES OR LIABILITIES OF THE OWNER THEREOF, OR ANY OTHER MATTER OR THING RELATING TO OR AFFECTING THE PROPERTY AND SELLER HEREBY DISCLAIMS AND RENOUNCES ANY OTHER REPRESENTATION OR WARRANTY. PURCHASER ACKNOWLEDGES AND AGREES THAT PURCHASER IS ENTERING INTO THIS AGREEMENT WITHOUT RELYING (EXCEPT AS EXPRESSLY SET FORTH HEREIN OR IN ANY EXHIBIT ATTACHED HERETO) UPON ANY SUCH REPRESENTATION, WARRANTY, STATEMENT OR OTHER ASSERTION, ORAL OR WRITTEN, MADE BY SELLER OR ANY REPRESENTATIVE OF SELLER OR ANY OTHER PERSON ACTING OR PURPORTING TO ACT FOR OR ON BEHALF OF SELLER WITH RESPECT TO THE PROPERTY BUT RATHER IS RELYING UPON ITS OWN EXAMINATION AND INSPECTION OF THE PROPERTY. PURCHASER HEREBY RELEASES AND FOREVER DISCHARGES SELLER FROM ANY AND ALL LIABILITY TO PURCHASER FOR CLAIMS, LOSSES, DAMAGES, COSTS, OR EXPENSES OF ANY KIND OR CHARACTER ARISING OUT OF OR RESULTING FROM CONDITIONS EXISTING ON THE PROPERTY PRIOR TO CLOSING. PURCHASER REPRESENTS THAT IT IS A KNOWLEDGEABLE PURCHASER OF REAL ESTATE AND THAT IT IS RELYING SOLELY ON ITS OWN EXPERTISE AND THAT OF ITS CONSULTANTS IN PURCHASING THE OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 10 of 26 February 3,2004 PROPERTY. THE TERMS AND CONDITIONS OF THIS PARAGRAPH SHALL EXPRESSLY SURVIVE THE CLOSING, SHALL NOT MERGE WITH THE PROVISIONS OF ANY CLOSING DOCUMENT AND SHALL BE INCORPORATED INTO THE SPECIAL WARRANTY DEED TO BE DELIVERED BY SELLER AT CLOSING. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT THE PROVISIONS OF THIS PARAGRAPH WERE A MATERIAL FACTOR IN THE DETERMINATION OF THE PURCHASE PRICE FOR THE PROPERTY. 15. Paragraph Headings The paragraph headings contained in this Agreement are for convenience only and shall in no way enlarge or limit the scope or meaning of the various and several paragraphs hereof. 16. Survival The parties agree that the duties and obligation contained in Paragraph 6 "Sewer Connection" and Paragraph 14 "No Representations or Warranties" shall survive the Closing of this Transaction. 17. Date of this Agreement The phrase "Effective Date" used herein shall mean the last date on which both Seller and Purchaser have executed this Agreement. 18. Venue and Governing Law If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Option on the Property, venue for such action shall lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. This Option shall be construed in accordance with the laws of the State of Texas. _ N OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 11 of 26 February 3,2004 19. Gender and Number Within this Agreement, words of any gender shall be held and construed to include any other gender, and words in the singular number shall be held and construed to include the plural and words in the plural number shall be held and construed to include the singular, unless the context otherwise requires. 20. Severability-Termination Upon a determination that any provision of this Agreement is unenforceable or invalid or upon any determination that the application of any provision of this Agreement to any person or circumstance is illegal or unenforceable, the Parties agree that this Agreement shall automatically terminate and neither party shall be liable to the other party for any claims or damages caused or resulting from the termination, however Seller agrees to return the Option Fee paid by Purchaser to Purchaser upon termination under this section. 21. Counterparts This Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had signed the same document. All such counterparts shall be construed together and shall constitute one instrument, but in making proof hereof it shall only be necessary to produce one such counterpart. 22. Force Majeure Not withstanding any provision to the contrary above, should Purchaser be unable to comply with any express or implied covenant of this Option, with any term or deadline to perform, with any requirement to give a notice or pay any amount of money due hereunder, after an effort made in good faith by Purchaser, for any cause beyond the reasonable control of Purchaser, the closing date shall be extended 180 days and Purchaser shall not be liable for damages for such non compliance or non payment, except that in any instance the obligation to pay rentals under the existing lease shall continue under the terms and conditions provided OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 12 of 26 February 3,2004 therein and all obligations shall continue under said lease as provided therein. IN NO EVENT SHALL THE CLOSING DATE BE EXTENDED PAST 180 DAYS, EXCEPT WITH THE APPROVAL OF THE CITY COUNCIL. IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date. SELLER: PURCHASER: CITY OF FORT WORTH Printed Namel Assi ant CA, Manager Date: Date: S T- Printed Name Date: j = OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 13 of 26 February 3,2004 APPROVED AS TO FORM: Assistant City Attorney ATTEST: [ -4q Contract author i zatioa q-M A t ' Date City Secretary ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF TARRANT § On this / day of _ _ 2004, the before undersigned, a Notary Public, duly commissioned, qualified and acting within and for the said County and State, appeared in person the within named /� c -T- to me personally known, who stated that he was an Assistant City Manager for the City of Fort Worth, Texas, and was duly authorized in his respective capacity to execute the foregoing instrument and acknowledged that he had so signed, executed and delivered said instrument for the consideration,uses and purposes therein mentioned and set forth. IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this day of #t c q Lt s I _' 2004. E07LY I E LANEISSION EXPIRES. NOt PUb11C 26,2007 Printed Name of Notary: -- My Commission Expires: OPTION TO PURCHASE AND PURCHASE AGREEMENT -Page 14-of 26 February 3,2004 ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared 2Z41 known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed. IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this('day of 2004. ePAW,f LISA A. SCOTFORD Notary Public STATE OF TEXAS AMy Cortin 1ml06�2007 Notary Public, State of T as ACKNOWLEDGMENT STATE OF TEXAS COUNTY OF TARRANT BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas, on this day personally appeared , known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that they executed the same for the purposes and consideration therein expressed. IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this day of 12004. Notary Public, State of Texas OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 15 of 26 February 3,2004 EXHIBIT "A" TO OPTION TO PURCHASE AND PURCHASE AGREEMENT Property Description The City will attach a copy of the most recent plat or replat that has been filed by the City since 1990 in the Tarrant County Courthouse. If the property has not been platted since 1990, the description used in the current lease will be used with the additional following language. "Seller intends to plat the Property before sale. If, at the time of platting there is a structure or any portion of a structure that is located on an adjoining leaseholder's property, the Property's boundary will be altered as to allow the adjoining leaseholder to maintain ownership of the structure. "Structure" is defined as a habitable structure, separate or affixed garage or carport, or in ground swimming pool. In addition, City may retain land for actual or planed public right-of- ways or for emergency ingress or egress easements. Purchaser hereby Waives, Releases and Folds Harmless the City of Fort Worth, its officers, employees and appointees from any claims, suits or damages resulting from the change of the Property's Boundary. Purchaser hereby agrees to cooperate with the Seller when the Seller is platting the Property and understands and agrees that Seller will make the final decision regarding the Property's Boundary and agrees that it will not file suit or make any claims regarding the changes to the Property's Boundary. OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 16 of 26 February 3,2004 Purchaser's Initials Seller's Initials OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 17 of 26 February 3,2004 EXHIBIT "B" OPTION TO PURCHASE AND PURCHASE AGREEMENT Annual Valuation Increase Year Above Below S/S.F. S/S.F. 2000 $0.65 $0.35 2001 $0.66 $0.36 2002 $0.68 $0.36 2003 $0.69 $0.37 2004 $0.70 $0.38 2005 $0.72 $0.39 2006 $0.73 $0.39 2007 $0.75 $0.40 2008 $0.76 $0.41 2009 $0.78 $0.42 2010 $0.79 $0.43 2011 $0.81 $0.44 2012 $0.82 $0.44 OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 18 of 26 February 3,2004 EXHIBIT "C" TO OPTION TO PURCHASE AND PURCHASE AGREEMENT Special Warranty Deed Form EXAMPLE OF SPECIAL WARRANTY DEED STATE OF TEXAS § § Know All Persons by These Presents: COUNTY OF TARRANT § Date: Grantor: CITY OF FORT WORTH Grantor's Mailing Address: 1000 Throckmorton Street Fort Worth, Tarrant County, Texas 76102 Grantee: Grantee's Mailing Address: Consideration:TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration. Property: Reservation from and Exceptions to Conveyance and Warranty: 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 and landing of aircraft. Grantee hereby releases the Grantor, its officers, agents and employees from any and all claims 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 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 OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 19 of 26 February 3, 2004 Aviation Administration, successor agency, or other governmental authority with jurisdiction over the matter. For Grantor and Grantor's, successors and assigns forever, a reservation of all oil, gas, and other minerals in and under and that may be produced from the Property. If the mineral estate is subject to existing production or an existing lease, this reservation includes the production, the lease, and all benefits from it. Grantor and Grantor's successor or assigns shall have any right to enter the Property in accordance with adopted City Ordinances governing gas and oil exploration and development. This conveyance is further subject to all restrictions, reservations, easements, prescriptions, right of way, maintenance or similar charges and any liens securing the payment thereof, declarations, covenants and conditions of record, if any, only to the extent they are presently in effect. Grantee acknowledges that Grantor has not made and does not make any representations as to the physical condition, or any other matter affecting or related to the property (other than warranties of title as provided and limited herein). Grantee expressly agrees that, to the maximum extent permitted by law, the property is conveyed "AS IS" and "WITH ALL FAULTS", and Grantor expressly disclaims, and Grantee acknowledges and accepts that Grantor has disclaimed, any and all representations, warranties or guaranties, of any kind, oral or written, express or implied (except as to title as hereafter provided and limited) concerning the property including without limitation the value, condition, merchantability, habitability, marketability, profitability, suitability or fitness for a particular use or purpose, of the property. Grantor expressly reserves out of the property conveyed in this instrument a perpetual flowage easement including the right to inundate, flood and overflow all of the property as shown on the recorded plat. Grantor shall not be liable for any damages resulting from the reasonable use of this easement. Further, Grantee shall not construct any structures and/or improvements beyond the established lake front property line, unless specifically permitted in the following paragraph. Any and all such permitted structures and/or improvements which extend into the flowage easement shall be constructed at a minimum finished floor elevation level of six hundred and one (601) feet. There is expressly granted unto Grantee an easement without warranty expressed or implied over the lands of the Grantor and the waters of Lake Worth, as they may be located from time to time, for water recreational purposes, for the purpose of ingress and egress to and from Lake Worth, and for the construction, maintenance and use of piers, docks and boat houses including the storage of boats, on the following described water and lands: OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 20 of 26 February 3, 2004 ti i y A) the lands enclosed on one side by the lakefront property line of Grantee, on a second side by the waters of Lake Worth, and on a third and fourth side by two lines, each beginning at opposite ends of Grantee's lakefront property line, and each being a projection of the side lot lines of each lot as shown on the Plat. (Hereinafter referred to as the "Access Easement".) (See Typical Water Use and Access Easement Exhibit A, attached hereto.); B) the waters of Lake Worth, except that such use shall be nonexclusive except for such piers and docks constructed thereon; C) the land lying under the waters of Lake Worth that are adjacent to the access easement, lying between two lines, each beginning at opposite ends of Grantee's lakefront property line, and each being a projection of the side lot lines of each lot as shown on the Plat. (See Typical Water Use and Access Easement Exhibit A, attached hereto.); D) All improvements, piers or structures on each easement must abut the lakefront property line of the property conveyed herein and cannot extend into the waters of Lake Worth for such distance as to deny access to said waters by adjoining land owners. Such improvements, piers or structures may extend to a point 100 feet from the lakefront property line into the waters of Lake Worth regardless of the depth of the water at the point, or to the point at which the elevation of the land lying under Lake Worth is not greater than 584 feet above mean sea level, but in no instance to extend further than 150 feet from the lakefront property line into the waters of Lake Worth. No construction beyond the above mentioned limits shall be considered without the prior written approval from the Director of Engineering for the City of Fort Worth. Variance shall be considered on a case by case basis. A Typical Water Use and Access Easement drawing is attached and incorporated to this Special Warranty Deed as Exhibit "A"; It is specifically understood that Grantor shall retain any and all interests in the above described water and lands subject to such water use and access easement, and does not intend to convey any of these interests to Grantee unless specifically granted hereto. Operation, Maintenance and Abandonment of Sanitary Sewer/Septic Systems Grantee shall be responsible for operating and maintaining individual septic systems, sewer lines and laterals on the property conveyed from the point of the City of Fort Worth sewer connection. Grantee shall connect to public sewer service when available and Grantee shall be responsible for all applicable connection fees. Further, Grantee shall be responsible for the proper abandonment of the septic system, sewer lines and laterals. The cost of such abandonment shall be the sole responsibility of Grantee. Grantee agrees to allow the Grantor access to the lot at reasonable times for the purpose of inspecting the operation of the septic system to verify compliance with applicable federal and state laws and statutes as well as the charter and ordinances of the City of Fort Worth. OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 21 of 26 February 3,2004 Grantee shall, at Grantee's expense, connect the water and sewer lines of the property to the water and sewer systems to be installed by Grantor to serve the property, when such water and sewer system is available for connection, including but not limited to paying tap fees and impact fees as required by City Ordinances. This conveyance is expressly made and accepted subject to all easements, restrictions, and other instruments properly of record. Nothing in this conveyance shall be construed as a waiver of the powers of Grantor to enact ordinances as a municipal corporation or as any reservation of the power in Grantor to vary the estates in land conveyed or reserved herein. Grantor, for the consideration and subject to the reservations from and exceptions to conveyance and warranty, grants, sells and conveys to Grantee the property, together with all and singular the rights and appurtenances thereto in any wise belonging, to have and hold it to Grantee, Grantee's heirs, executors, administrators, successors, and assigns forever. Grantor binds Grantor and Grantor's heirs, executors, administrators, and successors to warrant and forever defend all and singular the property to Grantee and Grantee's heirs, executors, administrators, successors and assigns against every person whomsoever lawfully claiming or to claim the same or any part thereof, except as to the reservations from and exceptions to conveyance and warranty, by, through and under it, but not otherwise. When the context requires, singular nouns and pronouns include the plural. IN WITNESS WHEREOF, Grantors have caused this instrument to be executed on this the day of 120 APPROVED AS TO FORM CITY OF FORT WORTH AND LEGALITY: Assistant City Attorney Assistant City Manager GRANTEE OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 22 of 26 February 3,2004 THE STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Marc A. Ott, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of the City of Fort Worth, a municipal corporation of Tarrant County, Texas, for the purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of 2003 THE STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on by GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of 72003 OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 23 of 26 February 3,2004 THE STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on by GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of 2003 Exhibit "A" to the Special Warranty Deed Typical Vat& Use and Access Easement 1 f 1 Any structure ( Waters in this area f of Watemay not deny Loke Worth Use I Use access to adjoining I Easement landowners 100' Normal I 150' �uoxium� Access I I Easement (Dist. Varies) Lakc{rant PCaA°rty lane Property Conveyed Public Right—of—Way of 26 Refer to Paragraph 'D' on Page 2 v Exhibit"D" Option to Purchase and Purchase Agreement Typical Sewer Installation and Responsibility Separation April 25,2003 Type 1 Typical Installation Gravity Plumbing to Gravity Main ..................I.,........I..... ........... City Right of Way- Existing Property LinePlumbing Existing Septic 1 AM �-r'�. Tank to be Li)!'I;':f .I' abandoned by Customer t End of City Work i i W ZN. lumbing Installedy Customer I City Sewer I Gravity Main OPTION TO PURCHASE. AND PURCHASE AGREEMENT Page 25 of 26 February 3,2004 Type 2 Typical Installation ..................................... Pump to Gravity Main City Right of Way- ' Property Line Electrical Connection Existing by Customer ;. Plumbing Existing Septic I � Tank to be Fir or Ir abandoned by Customer I _ Wiring ., /J b from cn Control / I/I d , Panel to i Pum / New�by I Service Force Main / I by Customer / I [G,a Sewer l End of City Woc New Pump ity Main by Customer Type 3 Typical Installation ............................... Grinder Pump to Force Main :..................... City Right of Customer Provided Existing Way-Property Electrical Connection Plumbing Line ... Existing Septic ■ `'r R c: Tank to be ■ . (;jj��l�j j�� abandoned by • I I IYII�mt�ptj Customer ■ i�III LL1�Nill1 ' I d Wiring ■ I from ■ Control ] � ■ F I Panel to" / -Pum / New Plumbing Installed) W 1 Service Force / By Customer • I I Main ■ - ■ — — „ — — — — — — _ _ _ _ � � � FEnd of City Work 11 �i ut•off )City Sewer I aive New Grinder Forla,�_ems_, mP OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 26 of 26 February 3,2004 City of Fort Worth, Texas "Ingoir And Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/19/02 L-13249 30OPTION 1 of 2 SUBJECT APPROVAL OF OPTION TO PURCHASE AND PURCHASE AGREEMENT CONTRACT TO FACILITATE THE DIRECT SALE OF LAKE WORTH LEASE PROPERTY RECOMMENDATION: It is recommended that the City Council authorize the City Manager to approve the Option to Purchase and Purchase Agreement contract, with the Lessees of the Lake Worth lease properties listed on Exhibit "A" to facilitate the direct sale of eligible Lake Worth lease properties. (See attached contract and Exhibit "A") DISCUSSION: On July 15, 2001, House Bill No. 1490 was signed into law and went into effect. This amendment to the Texas Local Government Code, Section 272.001(h), allows a municipality having a population of 575,000 or less and owning land within 5,000 feet of the shoreline of a lake, without notice or the solicitation of bids, to sell the land to the persons leasing the land for the fair market value of the land. In December 2001, City staff prepared an Informal Report to the City Council (Informal Report No. 8376 attached as Exhibit "B") which provided an update on the status of the sale of lease lots, and also recommended a four-year Lease Lot Sales Plan and a Water/Sewer Infrastructure Improvement Plan around Lake Worth. This sales plan includes 268 residential properties with an estimated market value of$4.7 million. In order to facilitate the direct sale of the residential Lake Worth lease properties, it is recommended that a sales option contract be executed with the Lessees for the properties eligible for sale. The sales option will allow the existing lessees to purchase their leased properties at today's fair market value adjusted annually upward by 2% per year until sold by the City in accordance with the recommended timeline outlined in Informal Report No. 8376. The properties eligible for this contract are listed on the attached Exhibit "A". The option fee provided in the contract is $500. Due to the proximity of the Joint Reserve Base/Naval Air Station, an avigation easement will be reserved on behalf of the public and incorporated into the Special Warranty Deed used to convey these properties. Proceeds From the sale of these City-owned Lake Worth lease properties will be deposited in a Lake Worth Infrastructure Fund Account in accordance with M&C G-12916 dated May 16, 2000. The proceeds are escrowed and designated for water and wastewater improvements within the area of the City of Fort Worth surrounding and adjoining Lake Worth. City of Fort Worth, Texas "Agar And Council Communication DATE REFERENCE NUMBERLOG NAME PAGE 2/19/02 L-13249 30OPTION 2 of 2 SUBJECT APPROVAL OF OPTION TO PURCHASE AND PURCHASE AGREEMENT CONTRACT TO FACILITATE THE DIRECT SALE OF LAKE WORTH LEASE PROPERTY FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Engineering Department, Real Property Services Division is responsible for the collection and deposit of funds from this sale. MG:n Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) PE45 444192 0601000 Mike Groomer 6140 Originating Department Head: Douglas Rademaker 6157 (from) APPROVED 02/19/02 Additional Information Contact: Douglas Rademaker 6157