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HomeMy WebLinkAboutContract 47938 C1T Y SECRETAXY CONTRACT NO. COMPLETION AGREEMENT—LENDER FUNDED This Completion Agreement ("Agreement) is made and entered into by and among the City of Fort Worth ("City"), and a Texas *"t**W44* ("Developer"), and #*rsV0tYJ1kV1J?A'W("Lender"), effective as of the date subscribed by the City's City Manager or Assistant City Manager. The City, the Developer and the Lender are hereinafter collectively called the"Parties". WITNESSETH: WHEREAS, the Developer owns that certain tract of real property that contains approximately 11 acres that is located in the City, the legal description of which tract of real property is marked Exhibit "A" —Legal Description, attached hereto and incorporated herein for all purposes ("Property"); and WHEREAS, the Developer intends to develop the Property as an addition to the City through plat FP le-MR ' or FS� ; and WHEREAS, the Developer and the City have entered into a Community Facilities Agreement relating to the development of 1..". 1. .1. 00060 4("CFA"); and WHEREAS, the City has required certain assurances of the availability of funds to complete the water and sewer utilities, streets/paving, storm drain, street lights and street signs for the development of the Property("Improvements"), and WHEREAS, in order to provide such assurances as have been required by the City, the Lender has agreed to advance certain funds to the City for Hard Costs (which term is hereinafter defined) subject to, and in accordance with, the terms, provisions and conditions of this Agreement; and WHEREAS, the Developer has granted to the Lender as additional security for the Loan (which term is hereinafter defined) a security interest in all plans and specifications for the development of the Property (collectively, the "Plans"); and WHEREAS, the Parties desire to set forth the terms and conditions of such accommodations as are described above. NOW THEREFORE, for and in consideration of the benefits to be derived from the mutual observance by the Parties of the terms and conditions hereof, and for and in consideration City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date:07.01.2015 RECEWD Page 1 of 13 JUN 3 02016 of Ten Dollars ($10.00) and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged,the Parties agree as follows: 1. Mecitals. The foregoing recitals are true, correct and complete and constitute the basis for this Agreement and they are incorporated into this Agreement for all purposes. 2. The Completion Amount. The City and the Developer agree that the Hard Costs required to complete the Improvements in the aggregate should not exceed the sum of tiadasdenrahci 15fltla Dollars ($7 } 1 'I ;), hereinafter called the "Completion Amount". Notwithstanding the foregoing, it is acknowledged that the actual costs of completion of the Improvements may vary as a result of change orders agreed to by the Parties, but such variances for the purposes of this Agreement shall not affect the Completion Amount as used herein. 3. Adjustments to the Completion Amount. The Lender may from time to time make advances to the Developer for the development of the Property under the development loan that has been made by the Lender to the Developer for the purpose of financing the costs of constructing the Improvements for the Property (the "Loan") subject to, and in accordance with, the terms, conditions and provisions of the Loan Documents (which term is hereinafter defined) evidencing and securing the Loan. Some of those advances shall be for Hard Costs as specified in the "Approved Budget" relating to the Loan, a copy of which Approved Budget is marked Exhibit `B", attached hereto and incorporated herein for all purposes, with the Hard Costs line items highlighted. The term "Hard Costs" shall mean the actual costs of construction and installation of the Improvements. To the extent that advances under the Loan are for the payment of Hard Costs, the Completion Amount shall be deemed reduced, dollar for dollar. The Lender may withhold statutory retainage from any advances under the Loan or pursuant to this Agreement. All such retainage withheld, to the extent it is attributable to Hard Costs, shall also reduce the Completion Amount dollar for dollar. All retainage withheld by the Lender for Hard Costs that are advanced to the City pursuant to this Agreement shall be released to the City as provided in the Texas Property Code upon expiration of the statutory retainage period. 4. Completion by the Developer. The Developer agrees to complete the Improvements on or before the date for completion that is established in the Loan Documents City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date:07.01.2015 Page 2 of 13 plus thirty (30) days (the "Completion Date"), in accordance with the CFA, the Plans approved by the Lender and the City and all documents evidencing or securing the Loan (collectively, the "Loan Documents"). For the purposes of this Agreement, the development of the Property shall be deemed complete upon acceptance by the City of the Improvements. The City shall promptly notify the Lender and the Developer upon such acceptance. 5. Completion by the City. In the event that either: (A) the development of the Property is not completed by the Completion Date for any reason whatsoever, or (B) the Developer is in default under the Loan, then the Lender, at its sole option, may request the City to complete development. The City may, at its sole option and at the cost and expense of the Developer, within 10 days from receipt of Lender's request, notify Lender that it will undertake to complete the Improvements and the City shall then commence, pursue, and complete the Improvements in a reasonably timely, diligent and workmanlike manner in accordance with the Plans, subject to the terms of this Agreement. The Lender and the Developer agree that the City may use the Plans as necessary to complete the Improvements. If the City does not timely elect to complete the construction of the Improvements or if the Lender does not request the City to complete construction of the Improvements, then the Lender may at its election terminate this Agreement, or at its option, proceed to complete the Improvements, or foreclose on any of its collateral, or take any and all such action as may be provided under the Loan Documents. 6. Advance of Completion Costs to the City and Delivery of Hard Costs Collateral to the City. In the event the Lender has requested the City and the City has elected to complete the Improvements, Lender shall transfer to the City all remaining undisbursed Hard Costs specified in the Approved Budget within 10 days of the date that the City elected to complete and provided Lender with written notice of such election. The Developer hereby authorizes and instructs the Lender to make the transfer of any remaining undisbursed Hard Costs specified in the Approved Budget to the City within 10 days of notification that the City elects to complete the Improvements. In the event the cost to complete the Improvements exceeds the moneys transferred to the City, City shall notify Lender and Developer in writing of the need of additional funds. The City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 3 of 13 additional funds required to complete the Improvements shall be delivered to the City within 10 business days following notification to Lender and Developer. Failure to deliver the additional funds shall relieve the City of the obligation to complete the Improvements, in which event City shall use the Hard Costs funds in its possession to pay the contractor(s) all funds due it/them. Any remaining undisbursed Hard Costs shall be returned to Lender within a reasonable time. 7. Completion by the Lender. The Lender may, at its discretion, but shall not be obligated to, undertake to complete the Improvements if there is any default under any Loan Documents in lieu of requesting the City to complete the Improvements. If the Lender elects to complete the Improvements, any Hard Costs it expends shall, dollar for dollar, reduce the Completion Amount. 8. Easements. In the event the City or the Lender undertakes the completion of the Improvements, the Developer (and to the extent necessary the Lender) grants to the City and the Lender open access to the Property and shall execute and deliver such temporary easements over and across the entirety of the Property for the purpose of access and use for the completion of the construction of the Improvements in accordance with this Agreement. To the extent requested by the City and the Lender, written temporary construction easements in form acceptable to the City and the Lender shall be executed by the Developer and filed of record. Nothing in this paragraph shall reduce any rights of the Lender or obligations of the Developer under the Loan Documents. 9. Lender's Rights. Nothing in this Agreement shall affect any portion of the Lender's collateral for the Loan or limit or impair the Lender's right to foreclose the same or deal with the collateral as it elects in accordance with the Loan Documents. 10. Satisfaction of the City Requirements. The City agrees that the assurances and covenants contained in this Agreement satisfy all requirements of the City with respect to Developer's performance bond or other financial security in connection with the development of the Property and the completion of the Improvements that are contained in the CFA or in any other agreement relating thereto, and the City hereby accepts the assurances and covenants contained herein in lieu thereof. To the extent the CFA irreconcilably conflicts with this Agreement, the provisions of this Agreement shall control. City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 4 of 13 11. Termination. This Agreement shall terminate upon the earlier to occur of the following: (a) acceptance by the City of the Improvements; (b) mutual written agreement of all of the Parties; or (c) the reduction of the Completion Amount to zero. However, release of the plat shall be governed by paragraph 12 hereof and termination pursuant to (b) or (c) of this paragraph 11 shall not require the City to release the plat. 12. Final Plat. The Parties acknowledge and agree that the City shall hold the final plat of the Property until the Improvements are completed and accepted by the City and all Hard Costs contractors have been paid, less retainage. Upon acceptance by the City and receipt of evidence from the Developer showing that all Hard Costs contractors have been paid, including but not necessarily limited to lien waivers and bills paid affidavits, the City shall within a reasonable time file the final plat for the Property in the Plat Records of the county where the Property is located. The purpose of the City retaining the final plat of the Property as provided herein is to guarantee the Developer's obligations under the CFA are completed. 13. Construction Contracts. Developer agrees to include in each Construction contract that it enters into for the completion of the Improvements the following: a. A statement that the City is not holding any security to guarantee any payment for work performed on the Improvements; b. A statement that the Property is private property and that same may be subject to mechanic's and materialman's liens; c. A requirement that each contractor contracting with the Developer release the City from any claim that is related to the Property of the Improvements; and d. A requirement that each contractor contracting with the Developer include in each subcontract the statements contained in a.,b., and c. above. 14. Miscellaneous. A. Non-Assignment of Agreement. This Agreement may not be assigned by any of the Parties without the prior written consent of all the other Parties. B. Notice. Any notice required or permitted to be delivered under this Agreement shall be deemed received on actual receipt by the appropriate party at the following addresses: (i) Notice to the City shall be addressed and delivered as follows: City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 5 of 13 City of Fort Worth Planning and Development Department 1000 Throckmorton Street Fort Worth,Texas 76102 Attention: CFA Division Julie Westerman, Development Manager Email: Julie.Westerman@fortworthtexas.gov Confirmation Number: 817-392-2677 and/or Attention: CFA Division Email: cfa@fortworthtexas.gov Confirmation Number: 817-392-2025 With a copy thereof addressed and delivered as follows: Douglas W. Black Office of the City Attorney City of Fort Worth 1000 Throckmorton Street Fort Worth,Texas 76102 Confirmation Number: 817-392-7615 (ii) Notice to the Developer shall be addressed and delivered as follows: RandyLockhart Glen;Mills,LLC P.O.Box 9072,6, Southlake,Texas 7,64 .2 Email: i4�40*wt@6ft net (iii) Notice to the Lender shall be addressed and delivered as follows: Wendell Gamble, Senior Vice President Fikrst I gated Bank 1517 Centre Place,Denton,Texas 76205 Email: l e@fi�tutitedbank com A party may change its address for notice upon prior written notice to the other parties pursuant to the terms hereof. City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date:07.01.2015 Page 6 of 13 C. Texas Law to Apply. This Agreement shall be construed under and in accordance with the laws of the State of Texas. D. Parties Bound. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and assigns. E. Legal Construction. In case any one or more of the provisions contained in this Agreement shall for any reason is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. F. Prior Agreements Superseded. This Agreement constitutes the sole and only agreement of the Parties with respect to the subject matter hereof and supersedes any prior understandings or written or oral agreements among the Parties concerning the subject matter hereof; provided, however, that this Agreement shall not supersede, amend or modify any of the Loan Documents or any portion thereof. G. Amendment. This Agreement may only be amended by a written instrument executed by all of the Parties to his Agreement. H. Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 7 of 13 ACCORDINGLY,the City of Fort Worth, Developer and Lender have each caused this instrument to be executed in quadruplicate in each entity's respective name by its duly authorized signatories effective as of the date executed by the City's City Manager or his/her designee.: CITY OF FORT WORTH: DEVELOPER: _rFerTiando east Name " Assistant City Manager Title Sw Dater Date: Approved as to Form and Legality: LENDE Name Vi�eldelGanzble Assistant City Attorney 14U lite Title Senior V1ce Pref dM. ATTEST: �F0Rr� M J. ays City Secret ly M&C: rJ/A . Date: 'X Fes, tris A)h¢ City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date:07.01.2015 Page 8 of 13 G-J"il,s..MC, the Guarantor of the Development Loan, is executing this Completion Agreement for the sole purpose of acknowledging that advances that are made by the Lender pursuant to this Completion Agreement shall be deemed to be advances that are made under the Loan that shall be subject to and covered by the Loan Documents and the Guaranty Agreement that was executed by GUARANTOR By: Name: Title: Sete'Me City of Fort Worth,Texas Standard Completion Agreement-Lender-Funded CFA Official Release Date:07.01.2015 Page 9 of 13 List of Exhibits to the Completion Agreement Attachment 1 —Changes to the Standard Completion Agreement Exhibit B - Legal Description Exhibit C - Approved Budget City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 10 of 13 ATTACHMENT"1" Changes to Standard Completion Agreement "None" City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 11 of 13 EXHIBIT A LEGAL DESCRIPTION City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date: 07.01.2015 Page 12 of 13 METES&BOUNDS DESCRIPTION BEING A 11.153 ACRE TRACT OF LAND LOCATED IN THE BENJAMIN THOMAS SURVEY,ABSTRACT NO, 1497,IN THE CITY OF FORT WORTH,TARRANT COUNTY,TEXAS,BEING A PORTION OF A CALLED I 1.153 ACRE TRACT OF LAND AS DESCRIBED IN THE GENERAL WARRANTY DEED TO GMLB, LLC, A TEXAS LIMITED LIABILITY COMPANY, FILED FOR RECORD IN COUNTY CLERK'S INSTRUMENT NO. D211265845,OFFICIAL PUBLIC RECORDS,TARRANT COUNTY, TEXAS(OPRTCT),SAID 11.153 ACRE TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED BY METES&BOUNDS AS FOLLOWS: BEGINNING AT A 5/8 INCH CAPPED IRON ROD SET STAMPED"MYCOSKIE MCINNIS"FOR THE NORTHERNMOST CORNER OF SAID CALLED 11.153 ACRE TRACT OF LAND,SAME BEING ON THE SOUTHWEST LINE OF A CALLED 63.387 ACRE TRACT OF LAND (REMAINDER PORTION) AS DESCRIBED IN THE WARRANTY DEED TO B.N.M. PROPERTIES, A TEXAS LIMITED LIABILITY PARTNERSHIP, FILED FOR RECORD IN VOLUME 13998, PAGE 569, DEED RECORDS, TARRANT COUNTY, TEXAS (DRTCT), SAME ALSO BEING ON THE SOUTHEAST LINE OF LOT 613, VAN ZANDT FARMS, AN ADDITION TO THE CITY OF FORT WORTH, TARRANT COUNTY, TEXAS, ACCORDING TO THE PLAT RECORDED IN CABINET A, SLIDE 3934, PLAT RECORDS, TARRANT COUNTY, TEXAS (PRTCT), SAID POINT OF BEGINNING HAVING A NAD 83 - TEXAS COORDINATE SYSTEM POSITION (GRID) OF N:7008919.9 E:2308605.1 (BEARINGS & COORDINATE VALUES SHOWN HEREON ARE IN REFERENCE TO THE NAD 83-TEXAS COORDINATE SYSTEM-NORTH CENTRAL ZONE,4202,BASED ON GPS OBSERVATIONS UTILIZING THE LEICA GPS REFERENCE NETWORK); THENCE SOUTH 36 DEGREES 57 MINUTES 01 SECONDS EAST, ALONG A SOUTHWEST LINE OF SAID CALLED 63.387 REMAINDER TRACT, BEING COMMON WITH THE NORTHEAST LINE OF SAID CALLED 11.153 ACRE TRACT OF LAND, A DISTANCE OF 779.28 FEET,TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED"BEASLEY RPLS 4050",BEING THE NORTH CORNER OF LOT 56, BLOCK 3,GLEN MILLS VILLAGE, AN ADDITION TO THE CITY OF FORT WORTH, TARRANT COUNTY, TEXAS,ACCORDING TO THE PLAT RECORDED IN CABINET A,SLIDE 10103,PRTCT; THENCE SOUTHWESTERLY, DEPARTING SAID COMMON LINE, AND ALONG THE NORTHERLY LINE OF SAID GLEN MILLS VILLAGE,THE FOLLOWING CALLS: SOUTH 55 DEGREES 52 MINUTES 54 SECONDS WEST, A DISTANCE OF 200.34 FEET,TO A 5/8 INCH CAPPED IRON ROD FOUND STAMPED"PROLINE SURVEYING"; SOUTH 32 DEGREES 40 MINUTES 14 SECONDS WEST,AT A DISTANCE OF 10.4 FEET, PASSING A 5/8 INCH CAPPED IRON ROD FOUND STAMPED "PROLINE SURVEYING", AND CONTINUING IN ALL A TOTAL DISTANCE OF 189.93 FEET,TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED`BEASLEY RPLS 4050; NORTH 74 DEGREES 14 MINUTES 25 SECONDS WEST, A DISTANCE OF 105.90 FEET, TO A 1/2 INCH IRON ROD FOUND,BEING ON THE EAST RIGHT-OF-WAY LINE OF GLEN MILLS TRAIL,A 50.00'RIGHT-OF-WAY; NORTH 75 DEGREES 42 MINUTES 53 SECONDS WEST,A DISTANCE OF 50.01 FEET,TO A 1/2 INCH IRON ROD FOUND; NORTH 74 DEGREES 27 MINUTES 16 SECONDS WEST, A DISTANCE OF 120.46 FEET, TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED`BEASLEY RPLS 4050"; SOUTH 73 DEGREES 45 MINUTES 49 SECONDS WEST, A DISTANCE OF 102.33 FEET, TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED`BEASLEY RPLS 4050; SOUTH 83 DEGREES 29 MINUTES 23 SECONDS WEST,A DISTANCE OF 79.05 FEET,TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED `BEASLEY RPLS 4050", BEING THE NORTHEAST CORNER OF LOT 13, BLOCK 2, GLEN MILLS VILLAGE, AN ADDITION TO THE CITY OF FORT WORTH, TARRANT COUNTY, TEXAS, ACCORDING TO THE PLAT RECORDED IN CABINET A,SLIDE 8046,PRTCT; THENCE ALONG THE EASTERLY LINE OF SAID BLOCK 2,GLEN MILLS VILLAGE,THE FOLLOWING CALLS: NORTH 50 DEGREES 04 MINUTES 41 SECONDS WEST,A DISTANCE OF 68.85 FEET,TO A 5/8 INCH CAPPED IRON ROD SET STAMPED"MYCOSKIE MCINNIS'; NORTH 18 DEGREES 22 MINUTES 53 SECONDS WEST,A DISTANCE OF 150.00 FEET, TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED`BEASLEY RPLS 4050"; NORTH 01 DEGREES 04 MINUTES 15 SECONDS WEST,A DISTANCE OF 32.32 FEET,TO A 5/8 INCH CAPPED IRON ROD SET STAMPED"MYCOSKIE MCINNIS"; NORTH 41 DEGREES 36 MINUTES 49 SECONDS WEST,AT A DISTANCE OF 100.11 FEET,PASSING A 1/2 INCH CAPPED IRON ROD FOUND STAMPED`BEASLEY RPLS 4050"ON THE EAST RIGHT-OF-WAY LINE OF VISTAMILL TRAIL, A 50.00'RIGHT-OF-WAY,AND CONTINUING IN ALL A TOTAL DISTANCE OF 150.00 FEET,TO A 5/8 INCH CAPPED IRON ROD SET STAMPED"MYCOSKIE MCINNIS"; SOUTH 48 DEGREES 19 MINUTES 38 SECONDS WEST,A DISTANCE OF 10.43 FEET,TO A 5/8 INCH CAPPED IRON ROD SET STAMPED "MYCOSKIE MCINNIS", BEING AT THE BEGINNING OF A NON-TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 150.00 FEET; ALONG SAID CURVE TO THE LEFT,THROUGH A CENTRAL ANGLE OF 05 DEGREES 54 MINUTES 17 SECONDS,AN ARC LENGTH OF 15.46 FEET, AND HAVING A LONG CHORD WHICH BEARS SOUTH 45 DEGREES 15 MINUTES 46 Page 1 of 2 SECONDS WEST,A CHORD LENGTH OF 15.45 FEET,TO A 1/2 INCH CAPPED IRON ROD FOUND STAMPED"BEASLEY RPLS 4050"; NORTH 41 DEGREES 40 MINUTES 22 SECONDS WEST, A DISTANCE OF 100.83 FEET,TO A 5/8 INCH CAPPED IRON ROD SET STAMPED "MYCOSKIE MCINNIS", BEING ON THE SOUTHEAST LINE OF LOT 713, OF SAID VAN ZANDT FARMS, FROM WHICH A 1/2 INCH CAPPED IRON ROD FOUND STAMPED `BEASLEY RPLS 4050" FOR THE WESTERNMOST CORNER OF LOT 3,BLOCK 2,OF SAID GLEN MILLS VILLAGE(A-8046)BEARS SOUTH 48 DEGREES 20 MINUTES 56 SECONDS WEST,A DISTANCE OF 149.09 FEET; THENCE NORTH 48 DEGREES 20 MINUTES 56 SECONDS EAST,ALONG THE NORTHWEST LINE OF SAID CALLED 11.153 ACRE TRACT OF LAND,A DISTANCE OF 335.29 FEET,TO A 5/8 INCH IRON ROD FOUND FOR THE EASTERNMOST CORNER OF SAID LOT 713,S.ME BEING THE SOUTHERNMOST CORNER OF SAID LOT 613,VAN ZANDT FARMS,FROM WHICH A 1/2 INCH IRON ROD FOUND FOR THE WESTERNMOST NORTHWEST CORNER OF SAID LOT 6B BEARS NORTH 18 DEGREES 26 MINUTES 05 SECONDS WEST,A DISTANCE OF 232.04 FEET, THENCE NORTH 48 DEGREES 21 MINUTES 26 SECONDS EAST,CONTINUING ALONG SAID NORTHWEST LINE,A DISTANCE OF 373.03 FEET,TO THE POINT OF BEGINNING,AND CONTAINING 11.153 ACRES(485,808 SQUARE FEET)OF LAND,MORE OR LESS. Page 2 of 2 EXHIBIT B APPROVED BUDGET Section I Water $11444*90 Sewer $120940.50 Subtotal W.53453 Section 11 Interior Streets Storm Drains Subtotal $430419:15 115 Section Ill Street Lights $3914 30 Sub-total $ TOTAL $7040745 City of Fort Worth,Texas Standard Completion Agreement—Lender-Funded CFA Official Release Date:07.01.2015 Page 13 of 13