HomeMy WebLinkAboutResolution 3882-05-2010A Resolution
NO 3882-05-2010
AUTHORIZING PAYMENT OF UP TO $10,000 00 FOR LEGAL SERVICES
PROVIDED BY J ANDREW ROGERS AND THE LAW FIRM OF KELLY HART
AND HALLMAN LLP, RELATED TO A COMMERCIAL CONSTRUCTION LOAN
TO FWS REALTY, LTD
WHEREAS, the City of Fort Worth would extend a commercial construction loan
to FWS Realty Ltd for the development of an approximately 14 420 square foot hangar
on 17 600 square feet of real property located at Fort Worth Spinks Airport and
WHEREAS because special legal expertise is required in the field of commercial
construction loan documentation and
WHEREAS J Andrew Rogers of the law firm Kelly Hart and Hallman LLP has
extensive expertise in drafting commercial construction loan documentation and has
agreed to assist the City m this matter
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS
1 That the City Attorney is hereby authorized to retain J Andrew Rogers and the law
firm of Kelly Hart and Hallman LLP as outside counsel pursuant to Chapter VI Section
3 of the City Charter to assist the City Attorney on legal issues related to a lease and
construction loan to FWS Realty Ltd and
2 That as far as practicable the compensation to be paid to J Andrew Rogers and the
law firm of Kelly Hart and Hallman LLP is hereby fixed in an amount not to exceed
$10 000 00
Adopted this 18th day of May 2010
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Marty Hendrix City Sec~re`ary
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APPROVED
CITY COUNCIL
MAY 18 2010
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City of Fort Worth, Texas
ORT WORT
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INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9211
To the Mayor and Members of the City Council March 23, 2010
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a SUBJECT AVIATION FUND LOANS
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The Aviation Department has determined with the assistance of the City Attorney's office and
Finance Department, that it is possible to make loans from the available Aviation monies for
buildings at the City's airports as well as to other City funds The Aviation Department operates
with three different funds which maintain a fund balance These funds are as follows:
o Municipal Airports Fund (PE40) used for operations of the Aviation Department. Average
Fund Balance of $960 000 00
o Gas Weil Projects Fund (P240) used for capital projects and one-time expenses as approved
by City Council Approximate Fund Balance $14 000 000 00
o Aviation Permanent Fund (T125 & T126) invested and interest earned for capital projects and
one-time expenses as approved by City Council Approximate Fund Balance
$17 800 000 00
In order to determine if these funds could be used on an interim basis for other city or airport
projects, the Aviation Department, City Attorney's Office and Finance Department have reviewed
applicable Federal Aviation Administration policies and State law Based upon this review it has
been determined that loans may be made from these Aviation Department Project' and
Permanent' funds if the money is repaid with interest. The types of projects may include facilities
built on airport properties and loans to other city funds.
Projects currently under consideration include: loans to land lease tenants for buildings to be built
on airport property- loans to the Storm Water Fund for advance funding for projects; loans to the
General Fund for Fire facilities and equipment at Station 42 (Spinks). Please note the loans for
buildings on airport property are for buildings that will at the end of the land lease, become City
property in accordance with State law and Federal policy
These loans would be paid back to the applicable aviation fund with interest as stipulated by
Federal Aviation Administration policy The interest rate being considered would be the 10-year
Treasury Bill rate plus 1 % which would then adjust every 10 years for the specific loan. This rate
is currently 3 63% which would set the loan interest at 4 63%.
The Aviation Department has provided notice to the Federal Aviation Administration that the City
intends to do these types of loans. For questions or additional information please contact Kent
Penney Airport Systems Director at 817 392.5403
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City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved. on 5(18/20.10 -Res. No. 3882-05-2010 _.
DATE. Tuesday May 1 S 2010
LOG NAME 12H{RE ROGERS FOR FWS
REFERENCE NO *G-16923
SUBJECT
Approve a Resolution Retaining J Related to S nks A~port ImprovemenKs for a Construction LoanPo FWS
Outside Counsel on Legal Issues p
Realty Ltd for a Fee Not to Exceed $10 000 00
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RECOMMENDATION
It is recommended that the City Council
1 Retain J Andrew Rogers and the law firm of Kelly Hart and Hallman LLP as outside counsel pursuant
to Chapter VI Section 3 of the City Charter to assist the City Attorney on legal issues related to a lease
and a construction loan and documentation to FWS Realty Ltd and
2. Adopt the attached resolution fixing in advance as far as practicable that the amount of compensation
to be paid to J Andrew Rogers and the law firm of Kelly Hart and Hallman LLP for their services will not
exceed $10 000 00
DISCUSSION
FWS Realty Ltd has been a teaminal bu Iding hangartspape ka d1 ra p area nowulutil zed bytcorporate
development of an executiv
flights, military operations and private pilots.
The Aviation Department has received a request from FWS Realty Ltd (FWS) to lease 17 600 square
feet of real property for the development of an approximately 14 420 square foot hangar to be utilized as
an aircraft storage facility
The Aviation Department recognizes the improvement this development would bring to the west side of
Spinks Airport and would like to extend a $600 000 00 construction loan to FWS Realty Ltd to aid in the
development. Informal Report No 9211 attached hereto provides-the background on the construction
loan Therefore it is recommended that the City Council authorize retaining J Andrew Rogers and the
Law Firm of Kelly Hart and Hallman LLP to assist the City Attorney on legal issues related to a
construction loan to FWS Realty Ltd
FISCAL INFORMATION /CERTIFICATION
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated of the Municipal Airport Fund
FUND CENTERS
TO Fund/Account/Centers
Logname: 12HIRE ROGERS FOR FWS
FROM FundlAccountlCenters
Page 1 of 2
PE40 539120 0551000
$10,000.00
CERTIFICATIONS
Submitted for City Manager's Office b~
Originating Department Head.
Additional Information Contact:
Fernando Costa (6122)
David Yett (7623)
Kent Penney (5403)
Charlene Sanders (7611)
Jonnie Huitt (5409)
Logname• 12HIRE ROGERS FOR FWS Page 2 of 2