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HomeMy WebLinkAboutContract 32813 CITY SECRETARY JONTRACT NO. . COUNTY OF TARRANT § STATE OF TEXAS § OPTION TO PURCHASE AND PURCHASE AGREEMENT THIS OPTION to Purchase ("Option")dated , IM is between the City of Fort Worth, a home rule municipal'ty, ("Seller"), acting through Marc A. Ott its duly authorized Assistant City Manager and, gZA Xa if �� `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: 1. Grant of Option OPTION TO PURCHASE AND PURCHASE AGREEMENT February 3,2004 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 Pa �� � tal ' 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 a 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 6D. 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 Pa February 3,2004 ter 'j+ G Hn, � � , 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 parry may change his or her address by written notice in accordance with this Paragraph: 9PTION 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 Throckmorton Fort Worth, Texas 76102 to Purchasers: -- �P.K.(�t, e. huh 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 February 3,2004 �, � , As 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 T RASE AND PURCHASE AGREEMENT Page 10 of 26 February 3,l 0k 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. OPTION TO PURCHASE AND PURCHASE AGREEMENT Pag February 3,2004 �T �(�, c R. 'Wffml YEN, 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 3,20f 4 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 Name I!?.• cyl' 't I A '3' Assistant 6ty ager Date: Date: Printed Name Date: OW--r OPT URCHASE AND PURCHASE AGREEMENT Page rr r-7ebruai}y3, 04 .�a APPROVED AS TO FORM: Assistant City Attorney ATTEST: Contract A thorizatioA Date City Secretary ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF TARRANT § On this_��day of 7!I �r�s,r�Qa-,, ' , 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 2�Y- -4, Z" 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 � � UDS ;�88 . y M'y ET r�E Notary Public July _1014-FA,PIREa •-.1c7; Printed Name of Notary: My Commission Expires: OPTION TO PURCHASE AND PURCHASE AGREEMENT P e BQ February 3,2004 H� RECORD 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 TARRRANT § This instrument was acknowledged before me on by GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of 2003 OPTION TO PURCHASE AND PURCHASE AGREEMENT Pa e 2� 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 'Water Use and Access Easement 1 Any structure I Waters in this area of may not deny Lake Worth woter 1 access to adjoining I Use J Easement landowners 100' Normal t 150' �Maxium� I Access ' Easement (Dist. Varies) I Lakefront Properly One 1 Property Conveyed Public Right—of—Woy of 26 Refer to Parogroph 'D' on Poge 2 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 . City Right of Way- Existing Property Line Plumbing Existing Septic Tank to be I A abandoned by a Imo .[ Customer LEnd of City W9 i I � i New Plu�InledBy City Sewer' 1 l_Gravity Main l) OPTION TO PURCHASE AND PURCHASE AGREEMENT P ,q r- . , February 3,2004Ulm �vJb:. Type 2 Typical Installation .................................... Pump to Gravity Main............. E City Right of Way- Existin Property Line Electrical Connection g •. by Customer %.Plumbing Existing Septic tCTank to be abandoned by Customer WiringfromControljPanel toPumj New Plumbing Installed by Customer New Pump nd of City Work by Customer Type 3 Typical Installation Grinder Pump to Force Main City Right ofCustomer Provided Existing Way-Property ? Electrical Connection Plumbing Line Existing Septic ■ e: Tank to be ■ � ]_.=.^,q 'tom abandoned by ■ I , ... gall Customer ■ I iifil Y ■ I � {` Wiring ��• ■ ' from / • M Control '•, / Panel to / Pump x / New Plumbing Installed Service Force 1 By Customer I Main I / _ _ _ _ — _ _ _ _ _ _ End of City Work Off } 1 City Sewer I Shut- New Grinder Force Maln Valve Pump f OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 26 of 26 February 3,2004 a City of Fort Worth, Texas ovagor And Council Communication DATE REFERENCE NUMBER LOG NAMEPAGE 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 41.%varr and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/19/02 L-13249 300P"PION 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 I ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) PE45 444192 0601000 Mike Groomer 6140 Originating Department Read: Douglas Rademaker 6157 (from) APPROVED 02/19/02 Additional Information Contact: Douglas Rademaker 6157