HomeMy WebLinkAboutContract 48824CITY SECRETqI�Y' �sJ ��
CON7Rq�T N0.
COMPLETION AGREEMENT — LENDER FUNDED
This Completion Agreement ("Agreement) is made and entered into by and among the City
of Fort Worth ("City"), and Lackland Calmont, Ltd., a Texas Limited Liability Company
("Developer"), and Southwest Bank("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 36.736 �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 16-028 or FSN/A; and
WHEREAS, the Developer and the City have entered into a Community Facilities
Agreement relating to the development of Deer Meadows Addition, Phase 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 fiinds to the City for Hard Costs (which term is hereinafter
defined) subj ect 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 of Ten
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 1 of 15
''�FFICIAL R@CORD
�ITY 3ECRE7'ARY
�1'. V�+DRTH, TX
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. Recitals. 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 Com�letion 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 Two million;
sixty five( thousand, six hundred twenty one dollars and 40/0Q Dollars ($2,06�,621 .40),
hereinafter called the "Completion AmounY'. 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 Com�letion 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 BudgeY' 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 Develo�er. The Developer agrees to complete the
Improvements on or before the date for completion that is established in the Loan Documents plus
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 2 of 15
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 b,y the CitX. 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 Com�letion 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 15
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
fiinds 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 Ciry 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 15
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 A�reement. 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 15
and/or
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
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:
Lackland Calmont LTD-Attn: Don Allen
3045 Lackland Road
Fort Worth, TX 76116
Email:
(iii) Notice to the Lender shall be addressed and delivered as follows:
Southwest Bank-Attn: Alec Barry
2200 West 7th Street
Fort Worth, TX 76107'
Email:
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 15
C. Texas Law to A�lv. 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. Headin�s. 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 15
133, a distance of 523.99 feet to a 5/8-inch iron rod with cap stamped "SHIELD ENGINEERING"
set;
THENCE South 89°35'20" West, over and across said tract of land recorded in Vohime 17109,
Page 133, a distance of 317.94 feet to a 5/8-inch iron rod with cap stamped "SHIELD
ENGINEERING" set;
THENCE South 00°26'52" East, over and across said tract of land recorded in Volume 17109, Page
133, a distance of 15.00 feet to a 5/8-inch iron rod with cap stamped "SHIELD ENGINEERING"
set;
THENCE South 89°35'20" West, over and across said tract of land recorded in Volume 17109,
Page 133, a distance of 50.00 feet to a 5/8-inch iron rod with cap stamped "SHIELD
ENGINEERING" set in the common west line of said tract of land recorded in Volume 17109,
Page 133 and the aforementioned easterly right-of-way line of Stone Road;
THENCE North 00°26'S2" West, along said common line, a distance of 274.20 feet to a 5/8-inch
iron rod with cap stamped "SHIELD ENGINEERING" set for the common northwest corner of
said tract of land recorded in Volume 17109, Page 133 and the westernmost southwest corner of
the aforementioned TESCO tract from which a 1/2-inch iron rod found bears South 83°35'40" W,
a distance of 0.75 feet, a 5/8-inch iron rod found bears N 83°35'40" E, a distance of 1.71 feet and
a 5/8-inch iron rod for the common northwest corner of a tract of land described in a deed to
TESCO, as recorded in Volume 3539, Page 348, DRTCT and the northeast corner of a tract of land
described in a deed to TESCO, as recorded in Volume 3625, Page 321, DRTCT bears North
00°26'52" West, a distance of 300.00 feet;
THENCE North 89°42'49" East, along the common north line of said tract of land recorded in
Volume 17109, Page 133 and the south line of said TESCO tract, as recorded in Volume 5581,
Page 430, at 367.35 feet pass the common northeast corner of said tract of land recorded in Volume
17109, Page 133 and the northwest corner of the aforementioned tract of land recorded in Volume
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 13 of 15
17109, Page 159, continuing in all a distance of 2324.40 feet to a bent 1/2-inch iron rod found for
the northeast corner of said tract of land recorded in Volume 17109, Page 159, also being an inner
ell corner of said TESCO tract, recorded in Volume 5581, Page 430;
THENCE South 12°45'32" West, along the common east line of said tract of land recorded in
Volume 17109, Page 159 and a west line of said TESCO tract, as recorded in Volume 5581, Page
430, a distance of 824.82 feet to the POINT OF BEGINNING, and containing 36.736 acres, or
1,600,211 square feet of land, more or less.
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 14 of 15
EXHIB IT B
APPROVED BUDGET
Section I
Water
Sewer
Subtotal
Section II
Interior Streets
Storm Drains
Subtotal
5ection III
Street Lights
Sub-total
TOTAL
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 15 of 15
$411174.�0
$300623.00
$798967.45
$513234.0(?
$41622.95
$711797.00
$1312201.45
41622,95'
$2065621.40
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:
��i'�'�l��' !� _
.�?t'n a.�e-�sta '�r i, S� � �
Assistant City Manager
Date: � � — t �
Appr-ovecl ns to Form and Legality:
��/'i!� Li �r
. K•`c�+�- l4 • ►'u `'Gr+a.c�t:�
Assistant Ciry Attorney 3�r,, I�'
ATTEST:
Mary 7.�a�se
City Secretary
M&C: nJI�
Date:
�,w,. [Z4S � ��i�
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 8 of 15
DEVELOPER:
/,, ^ T
lf-'��� _-
I�Fame: Don Allen
Title: Secretary
Date:
LENDER:
/% ���.�
� `� -:�
Name: Alec Barry �
Title: President Southwest�nk-7th Street
,;;
%
OFFICIAL, RECOPt�
CIiY ��'CRETARI�
�'. lihP��l'Pp�� �'X
Tim H. Fleet, 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 Tim H. Fleet.
GUARANTOR
/ ,-. �%
B y: �`� '� L�l
Name: Tim H. Fleet
Title: President
OFFICI�iL. REC�R�
CITY ��C���ARY
�7".'WaRTN, TX
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 9 of 15
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 15
ATTACHMENT "1"
Changes to Standard Completion Agreement
DELETE THE SECOND PARAGRAPH IN SECTION 6., AND REPLACE WITH THE
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07.01.2015
Page 11 of 15
It •
All of that certain tract of land described in a deed to Inaugural Investments, Inc. as recorded in
Volume 17109, Page 159, Deed Records, Tarrant County, Texas (DRTCT) and a portion of that
certain tract of land described in a deed to Inaugural Investments, Inc. as recorded in Vohime
17109, Page 133, DRTCT, and being more particularly described by metes and bounds as follows:
BEGINNING at a 1/2-inch iron rod with plastic cap stamped "MOAK SURV INC" found for the
southeast corner of said tract recorded in Volume 17109, Page 159, also being the southernmost
southwest corner of a tract of land described in a deed to Texas Electric Service Company
(TESCO), as recorded in Volume 5581, Page 430, DRTCT, and also being in the north line of a
tract of land described in a deed to Jimmy Purselley and Joyce M. Purselley, as recorded in Volume
12167, Page 434, DRTCT;
THENCE South 89°35'20" West, along the common south line of said tract recorded in Volume
17109, Page 159 and the north line of said Purselley tract, at 1402.93 feet pass the common
northwest corner of said Purselley tract and the northeast corner of a tract of land described in a
deed to Rene Donato, et al, as recorded in Volume 8066, Page 573, DRTCT, continuing in all a
distance of 1766.91 feet to a 1/2-inch iron rod found for the common southwest corner of said tract
recorded in Volume 17109, Page 159, the southeast corner of the aforementioned tract of land
recorded in Volume 17109, Page 133, the northwest corner of said Donato tract, and the northeast
corner of a tract of land described in a deed to Mukhtar Anees, from which a bent 1/2-inch iron
rod found for the common southwest corner of said tract of land recorded in Volume 17109, Page
133 and the northwest corner of said Anees tract bears South 89°35'20" West, a distance of 369.04
feet, said iron rod also being in the easterly right-of-way line of Stone Road (a 65-foot right-of-
way) as dedicated per plat recorded in County Clerk's Filing No. D213097087, PRTCT;
THENCE North 00°34'OS" West, along the common west line of said tract of land recorded in
Volume 17109, Page 159 and the east line of said tract of land recorded in Volume 17109, Page
City of Fort Worth, Texas
Standard Completion Agreement — Lender-Funded
CFA Official Release Date: 07A1.2015
Page 12 of 15