HomeMy WebLinkAboutContract 49108 �'� olSECRETARY
A o OX/0
q FC`� N
CONTRACT OF SALE AND PURCHASE
(Sale by City of Fort Worth of Lake Worth Leased Lot)
& L 9 S CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into
by and between the CITY OF FORT WORTH, TEXAS, a Texas home rule municipal
corporation, acting by and through its duly authorized City Manager or Assistant City Manager
("Seller") and Lyndon Landers etux Cindy Landers ("Purchaser") as of Wti V 311 2017
("Effective Date").
RECITALS
1. Seller is the owner of the real property only (exclusive of improvements) located at 7509
Malaga Dr. (the Property"), as shown and more particularly described on the attached
Exhibit"A", incorporated herein for all purposes.
2. Seller and Purchaser (as successor-in-interest to original lessee) are parties to a ground
lease for the Property dated February 1, 1982 , as amended by a lease amendment dated
, 2017 (collectively, the "Lease Agreement").
3. The Lease Agreement provides Purchaser with an option to purchase ("Option"),
pursuant to Section 272.001(h) of the Local Government Code, and by execution of this
Contract, Purchaser hereby exercises the Option.
AGREEMENT
In consideration of the mutual covenants, representations, warranties and agreements
contained herein, and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Seller and Purchaser agree as follows:
Section 1. Agreement of Sale and Purchase.
(a) Seller agrees to sell and convey the Property to Purchaser, and Purchaser agrees to
purchase and accept the Property from Seller, for the purchase price (as defined below), subject
to the terms and conditions set forth in this Contract.
(b) Seller shall convey the Property to Purchaser AS-IS, as set forth in Section 5.
(c) In Seller's conveyance of the Property to Purchaser, the following rights and
interests shall be reserved to Seller (or have previously been reserved by Seller's predecessor in
title), and such reservation is hereby approved for all purposes: all right, title, and interest in and
to all oil, gas, and other minerals in and under the Property, if any.
OFFICIAL RECORD
Lake Worth Lease Property Sale-7509 Malaga Drive CITY SECRETARY
F .WORTHI TX Page 1 of 11
IV
IT
(d) 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. Purchaser hereby releases Seller, its officers,
agents and employees from any and all claim 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 Aviation Administration,
successor agency, or other governmental authority with jurisdiction over the matter.
(e) Seller shall retain the following easements and any easements retained by Seller
will be at no cost to Seller: all existing easements, whether of record or not, known or unknown.
(f) Pursuant to City of Fort Worth Code of Ordinances Section 35-3, Purchaser
agrees to connect to water and sanitary sewer lines if available prior to Closing, or, if not
available prior to Closing, as soon as practicable after such lines are made available. This
requirements shall survive Closing.
Section 2. Purchase Price.
The purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller in
cash at Closing (defined below), is Thirty Six Thousand and 00/100 ($36,000.00). Section
272.001(h) of the Local Government Code requires the Property to be sold for fair market value
of the land as determined by a certified appraiser, and pursuant to an appraisal obtained by
Lyndon and Cindy Landers dated February 3, 2017, Seller has determined that the Purchase
Price reflects the current fair market value of the Property.
Section 3. Title Commitment and Survey.
(a) Within fifteen (15) days after the Effective Date, Purchaser shall obtain at
Purchaser's sole cost and expense (i) a Commitment for Title Insurance and Title Policy ("Title
Commitment") from the Title Company of Purchaser's choice ("Title Company"), setting forth
the status of the title of the Property and showing all liens, claims, easements, rights-of-way,
reservations, restrictions, encroachments, tenancies, and any other encumbrances (collectively,
the "Encumbrances") and other matters, if any, relating to the Property; and (ii) a legible copy of
all documents referred to in the Title Commitment, including but not limited to, plats,
reservations, restrictions, and easements.
(b) Within twenty-five (25) days after the Effective Date, Purchaser may obtain, at
Purchaser's sole cost and expense, an updated survey ("Survey") consisting of a plat and field
notes describing the Property, prepared pursuant to a current on-the-ground staked survey
performed by a registered public surveyor or engineer satisfactory to Purchaser and Title
Company. The Survey shall (i) be certified to Purchaser, its successors and assigns, and Title
Company, (ii) reflect the actual dimensions of and the total number of square feet within the
Property, net of any portion thereof lying within a publicly dedicated roadway or a utility
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 2 of 11
easement, (iii) identify any rights-of-way, easements, or other Encumbrances by reference to
applicable recording data, and (iv) include the Surveyor's registered number and seal, and the
date of the Survey. The description of the Property prepared as a part of the Survey will be used
in all of the documents set forth in this Contract that requires a legal description of the Property.
(c) If the Title Commitment or Survey discloses any Encumbrances or other matters
that are not acceptable to Purchaser in Purchaser's sole discretion, then Purchaser shall give
Seller written notice thereof within five (5) days after receipt of the Title Commitment, Survey
and all documents referred to in the Title Commitment, specifying Purchaser's objections
("Objections"), if any. If Purchaser gives such notice to Seller, Seller may cure the Objections,
but shall be under no obligation to do so.
(d) If Purchaser gives notice of Objections and Seller does not cure the Objections,
cause the Title Commitment and Survey to be amended to give effect to matters that are cured,
and give Purchaser written notice thereof within the five (5) day period following receipt of the
notice from Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this
Contract by giving written notice thereof to Seller at any time after the expiration of such Cure
Period but prior to the expiration of the option period (as defined below), and, upon such
termination, neither parry hereto shall have any further rights or obligations; or (ii) to waive the
Objections and consummate the purchase of the Property subject to the Objections which shall
be deemed to be Permitted Encumbrances. Notwithstanding the foregoing sentence, if Seller has
commenced curing the Objections and is diligently prosecuting the same, as determined by
Purchaser in Purchaser's sole discretion, then Purchaser in Purchaser's sole discretion may extend
the Cure Period for an amount of time Purchaser deems necessary for Seller to cure the same.
PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT
PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 3(d) OR ANY
OTHER TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE
UNDER THE LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE
SUBJECT TO THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE
LEASE AGREEMENT.
Section 4. Review Reports. DELETED BY AGREEMENT OF THE PARTIES.
Section 5. Representations, Warranties, "AS IS"
(a) EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, PURCHASER
ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT
MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS
OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER
EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF,
AS, TO CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE,
QUALITY OR CONDITION OF THE PROPERTY INCLUDING, WITHOUT
LIMITATION, THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE
DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY
FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT
THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 3 of 11
OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF
ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER
OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY,
INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY, STATE OF
REPAIR OR LACK OF REPAIR OF THE PROPERTY, OR (H) ANY OTHER MATTER
WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT SELLER HAS
NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS REGARDING COMPLIANCE WITH ANY ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS,
ORDERS OF REQUIREMENTS, INCLUDING SOLID WASTE, AS DEFINED BY THE
U. S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R.,
PART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY, OF
ANY HAZARDOUS SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980,
AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER.
PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN
GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER IS
RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT
ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. AS A
MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, SELLER
AND PURCHASER AGREE THAT PURCHASER IS TAKING THE PROPERTY "AS
IS" WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS
NO WARRANTY BY SELLER THAT THE PROPERTY IS FIT FOR A PARTICULAR
PURPOSE. PURCHASER ACKNOWLEDGES THAT IT IS NOT RELYING UPON
ANY REPRESENTATIONS, STATEMENTS, ASSERTIONS OR NON-ASSERTIONS BY
THE SELLER WITH RESPECT TO THE PROPERTY CONDITION, BUT IS RELYING
SOLELY UPON ITS EXAMINATION OF THE PROPERTY. PURCHASER TAKES
THE PROPERTY UNDER THE EXPRESS UNDERSTANDING THERE ARE NO
EXPRESS OR IMPLIED WARRANTIES (EXCEPT FOR LIMITED WARRANTIES OF
TITLE SET FORTH IN THE CLOSING DOCUMENTS). UPON CONVEYANCE, AS
BETWEEN SELLER AND PURCHASER, THE RISK OF LIABILITY OR EXPENSE
FOR ENVIRONMENTAL PROBLEMS AFFECTING THE PROPERTY, EVEN IF
ARISING FROM EVENTS BEFORE CLOSING, WILL BE THE SOLE
RESPONSIBILITY OF PURCHASER, REGARDLESS OF WHETHER THE
ENVIRONMENTAL PROBLEMS WERE KNOWN OR UNKNOWN AT CLOSING.
ONCE CLOSING HAS OCCURRED, PURCHASER INDEMNIFIES, HOLDS
HARMLESS AND RELEASES SELLER FROM LIABILITY FOR ENVIRONMENTAL
PROBLEMS AFFECTING THE PROPERTY, INCLUDING, BUT NOT LIMITED TO,
UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION
AND LIABILITY ACT ("CERCLA"), THE RESOURCE CONSERVATION AND
RECOVERY ACT (RCRA), THE TEXAS SOLID WASTE DISPOSAL ACT OR THE
TEXAS WATER CODE. PURCHASER INDEMNIFIES, HOLDS HARMLESS AND
RELEASES SELLER FROM ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS
OR CONDITIONS AFFECTING THE PROPERTY ARISING AS THE RESULT OF
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 4 of 11
SELLER'S OWN NEGLIGENCE OR THE NEGLIGENCE OF SELLER'S
REPRESENTATIVES, BUT NOT ANY WILLFUL ACTS OR OMISSIONS OR GROSS
NEGLIGENCE OF SELLER OR SELLER'S REPRESENTATIVES. PURCHASER
INDEMNIFIES, HOLDS HARMLESS AND RELEASES SELLER FROM ANY
LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING
THE PROPERTY ARISING AS A RESULT OF THEORIES OF PRODUCTS
LIABILITY AND STRICT LIABILITY, OR UNDER NEW LAWS OR CHANGES TO
EXISTING LAWS ENACTED AFTER CONVEYANCE DATE THAT WOULD
OTHERWISE IMPOSE ON SELLER IN THIS TYPE OF TRANSACTION NEW
LIABILITIES FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING
THE PROPERTY. PROVISIONS OF THIS SECTION SHALL SURVIVE THE
CLOSING. IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE HAS
BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE
PROPERTY IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO
THE FOREGOING. PURCHASER ACKNOWLEDGES AND ACCEPTS ALL THE
TERMS AND PROVISIONS BY HIS ACCEPTANCE HEREOF.
b. The provisions of Section 5(a) shall be incorporated into the Deed.
C. The provisions of Section 5(a) shall survive the Closing.
Section 6. Option Period. DELETED BY AGREEMENT OF THE PARTIES
Section 7. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right to
make inspections, surveys, test borings, soil analyses, and other tests, studies and surveys,
including without limitation, environmental and engineering tests, borings, analyses, site
assessments, and studies ("Tests). Any Tests shall be conducted at Purchaser's sole risk and
expense, and PURCHASER AGREES TO INDEMNIFY AND DEFEND SELLER AND
THE PROPERTY FROM ANY LIENS AND CLAIMS RESULTING FROM SUCH
TESTS. The Property will be restored by Purchaser to its original condition at Purchaser's sole
expense following any site work. Purchaser shall release to Seller any and all independent
studies or results of Tests obtained during the Option Period.
Section 8. Closing Contingencies. DELETED BY AGREEMENT OF THE PARTIES.
Section 9. Closing.
(a) The closing of the sale of the Property by Seller to Purchaser ("Closing") shall
occur through the office of the Title Company no later than eighteen (18) months after the
Effective Date. At the Closing, all of the following shall occur, all of which are deemed
concurrent conditions:
(1) Seller, at Purchaser's sole cost and expense, shall deliver or cause to be
delivered to Purchaser the following:
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 5 of 11
(i) A Special Warranty Deed ("Deed"), fully executed and
acknowledged by Seller; conveying to Purchaser good and indefeasible
fee simple title to the Property subject to existing known or unknown
easements, rights-of-way, and prescriptive rights, whether of record or not;
containing (A) reservations pursuant to Section 1(c), (d) and (e); (B) the
following statement as required by Local Government Code 272.001(h),
"To protect the public health, safety, or welfare and to ensure an adequate
municipal water supply, the Property sold by the City of Fort Worth under
Local Government Code 272.001(h) is not eligible for and the owner is
not entitled to the exemption provided by Section 11.142(a), Water Code;"
and (C) the language required in Section 5, with the precise form of the
Deed to be determined pursuant to Section 11 below;
(ii) Any other instrument or document necessary for Title Company to
issue the Owner Policy in accordance with Section 9(a) (3)below.
(2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to
be delivered to Seller through the Title Company a certified check or such other
means of funding acceptable to Seller, in an amount equal to the Purchase Price,
plus any rent due and owing under the Lease Agreement.
(3) The Title Company shall issue to Purchaser, at Purchaser's sole cost and
expense, a Texas Owner Policy of Title Insurance ("Owner Policy") issued by
Title Company in the amount of the Purchase Price insuring that, after the
completion of the Closing, Purchaser is the owner of indefeasible fee simple title
to the Property, subject only to the Permitted.
(4) Seller and Purchaser shall each pay their respective attorneys' fees.
(5) Except as otherwise provided herein, all costs and expenses in connection
with Closing shall be paid or borne by Purchaser including without limitation,
Title Company attorney and escrow or settlement fees, costs of tax certificates,
survey costs, and title insurance policy costs.
(6) Purchaser shall be responsible for all ad valorem and similar taxes and
assessments, if any, relating to the Property.
(c) Upon completion of the Closing, Seller shall deliver possession of the Property to
Purchaser.
Section 10. Agents. Seller and Purchaser each represent and warrant to the other that it
has not engaged the services of any agent, broker, or other similar party in connection with this
transaction except the following: N/A. PURCHASER SHALL BE SOLELY
RESPONSIBLE FOR AND SHALL INDEMNIFY SELLER FROM PAYMENT OF ANY
BROKERAGE FEES OR COMMISSIONS.
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 6 of 11
Section 11. Closing Documents. DELETED BY AGREEMENT OF THE PARTIES.
Section 12. Notices.
(a) Any notice under this Contract shall be in writing and shall be deemed to have
been served if (i) delivered in person to the address set forth below for the party to whom the
notice is given, (ii) delivered in person at the Closing (if that party is present at the Closing), (iii)
placed in the United States mail, return receipt requested, addressed to such party at the address
specified below, or (iv) deposited into the custody of Federal Express Corporation to be sent by
FedEx Overnight Delivery or other reputable overnight carrier for next day delivery, addressed
to the party at the address specified below.
(b) The address of Seller under this Contract is:
City of Fort Worth With a copy to:
Property Management Department City of Fort Worth
Attn: Lester England, Sr. Land Agent City Attorney's Office
200 Texas Street Attn: Leann Guzman
Fort Worth, Texas 76102 200 Texas Street
Fort Worth, Texas 76102
(c) The address of Purchaser under this Contract is:
Lyndon Landers etux Cindy Landers
7509 Malaga Dr
Fort Worth, TX 76135
(d) From time to time either party may designate another address under this Contract
by giving the other party advance written notice of the change.
Section 13. Termination, Default, and Remedies.
(a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant
to this Contract at the Closing for any reason other than termination of this Contract by Purchaser
pursuant to a right so to terminate expressly set forth in this Contract or Seller's failure to
perform Seller's obligations under this Contract, then Seller, as Seller's sole and exclusive
remedy, shall have the right to terminate this Contract by giving written notice thereof to
Purchaser prior to or at the Closing, whereupon neither party hereto shall have any further rights
or obligations. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY,
PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT
PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 13(a) OR ANY
OTHER TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE
UNDER THE LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE
SUBJECT TO THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE
LEASE AGREEMENT.
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 7 of 11
(b) If Seller fails or refuses to consummate the sale of the Property pursuant to this
Contract at Closing or fails to perform any of Seller's other obligations hereunder either prior to
or at the Closing for any reason other than the termination of this Contract by Seller pursuant to a
right so to terminate expressly set forth in this Contract or Purchaser's failure to perform
Purchaser's obligations under this Contract, then Purchaser shall have the right to terminate this
Contract by giving written notice thereof to Seller prior to or at the Closing. A termination by
Purchaser of this Contract due to Seller's default will not result in a default under the
Lease Agreement.
Section 14. Entire Contract. This Contract (including the attached exhibits) contains the
entire contract between Seller and Purchaser, and no oral statements or prior written matter not
specifically incorporated herein is of any force and effect. No modifications are binding on
either party unless set forth in a document executed by that parry.
Section 15. Assigns. This Contract inures to the benefit of and is binding on the parties
and their respective legal representatives, successors, and assigns. Any assignment must be
approved by City of Fort Worth and this Contract cannot be assigned less than 60 days prior to
the scheduled Closing.
Section 16. Time of the Essence. It is expressly agreed that time is of the essence
with respect to this Contract.
Section 17. Taking Prior to Closing. If, prior to Closing, the Property or any portion
thereof becomes subject to a taking by virtue of eminent domain, Purchaser may, in Purchaser's
sole discretion, either (i) terminate this Contract, and neither party shall have any further rights
or obligations hereunder, or(ii)proceed with the Closing of the transaction with an adjustment in
the Purchase Price to reflect the net square footage of the Property after the taking.
Section 18. Governing Law. This Contract shall be governed by and construed in
accordance with the laws of the State of Texas.
Section 19. Performance of Contract. The obligations under the terms of the
Contract are performable in Tarrant County, Texas, and any and all payments under the terms of
the Contract are to be made in Tarrant County, Texas.
Section 20. Venue. Venue of any action brought under this Contract shall be in Tarrant
County, Texas if venue is legally proper in that county.
Section 21. Severability. If any provision of this Contract is held to be invalid,
illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not
affect any other provision, and this Contract will be construed as if such invalid, illegal, or
unenforceable provision had never been contained herein.
Section 22. Business Days. If the Closing or the day for performance of any act
required under this Contract falls on a Saturday, Sunday, or legal holiday for the City of Fort
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 8 of 11
Worth or federal holiday, then the Closing or the day for such performance, as the case may be,
shall be the next following regular business day.
Section 23. Multiple Counterparts. This Contract may be executed in any number of
identical counterparts. If so executed, each of such counterparts is to be deemed an original for
all purposes, and all such counterparts shall, collectively, constitute one agreement, but, in
making proof of this Contract, it shall not be necessary to produce or account for more than one
such counterpart.
This Contract is executed as of the Effective Date.
SELLER: PURCHASER
CITY OF FORT WORTH, TEXAS
Loww�
�&rAssis ant City Manager—Jesus J. Chapa
Lyndon Landers
ATTEST:
FORT Cindy nders
O. •.O
Mary Kays
City Secretary j
M&C: L-15964
1295: f
APPROVED AS TO LEGALITY A
ssistant City Atto y
CONTRACT MANAGER
By signing I acknowledge that I am the person responsible for the monitoring and administration
of this contract, including ensuring all performance and reporting requirements.
Name: Lester n and
Title: Sr. Land Agent
OFFICIAL.RECORD
CITY SECRETARY
Lake Worth Lease Property Sale-7509 Malaga Drive WORTH,TX
Page 9 of 11
By its execution below, Title Company acknowledges receipt of this Contract and agrees to hold
and deliver the same and perform its duties pursuant to the provisions of this Contract.
TITLE COMPANY:
By:
Name:
Title:
Date:
Phone
Fax
Lake Worth Lease Property Sale-7509 Malaga Drive
Page 10 of 11
Exhibit "A"
Property Description
Lot 30 A&B, Block 7, Lake Worth Lease Addition, Fort Worth, Tarrant County, Texas
aka 7509 Malaga Drive.
M&C Review Page 1 of 2
Offlc'al site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FORTII
COUNCIL ACTION: Approved on 11/8/2016
DATE: 11/8/2016 REFERENCE NO.: L-15964 LOG NAME: 21 LAKESALES
CODE: L TYPE: NON-CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Contract for Sale with Current Residential Lessees of City-Owned Lake Worth
Lease Addition Lots for Fair Market Value and Authorize Contemporaneous Lease
Amendment to Provide for a Shorter Term and the Disposition of Improvements Upon
Expiration (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager or his designee to:
1. Enter into a Contract for Sale with current residential lessees of City fee-owned Lake Worth Lease
Addition platted residential lots for a sales price that is fair market value as determined by an
appraisal by a certified appraiser; and
2. Enter into a Lease Amendment, contemporaneously with the Contract for Sale, with current
residential lessees of City fee-owned Lake Worth Lease Addition lots to amend the lease to provide
for a shorter term and the disposition of the improvements upon expiration.
DISCUSSION:
In 2000, the City of Fort Worth mailed letters to Lake Worth Lease Addition lessees of record offering
an option to purchase the land if the leased lot met the specified conditions of(1) their lot(s) being
platted and (2) connection to either municipal water or sewer. Multiple lots could not be platted at that
time and the lessees of those properties were never offered the option to purchase due to
deficiencies associated with the property which caused non-compliance with platting requirements.
Additionally, some of the lessees on properties that met the conditions of the City's offer for the option
to purchase did not enter into the Purchase Option Agreement with the City or lost the option due to
not adhering to the option Agreement conditions.
Lessees of platted and un-platted residential City-owned Lake Worth Lease Addition properties are
requesting to purchase the leased land on which they have put improvements. The current residential
leases expire in 2032 and per the lease terms the City is required to purchase improvements at fair
market value at that time. The current residential Lake Worth Lease Addition lease terms do not
authorize the sale of the land to the current lessee or the extension of the lease.
This Mayor and Council Communication will provide for current lessees of residential City-owned lots
in the Lake Worth Lease Addition whose lots meet platting conditions, and who comply with the
conditions outlined below to be eligible to purchase their leased lot from the City at the fair market
value determined at time of the purchase.
Conditions of Purchase:
• Property must be platted at the expense of the lessee.
• Lessee must hire an approved appraiser to obtain a fair market value appraisal of the land to be
conveyed.
• Lessee must execute a Lease Amendment that provides for a lease termination date that is the
earlier of (i) closing on the purchase of the property or (ii) 18 months after the date of the
amendment at which time the improvements would become property of the City.
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=22991&councildate=11/8/2016 6/2/2017
M&C Review Page 2 of 2
• Lessee must execute a Purchase and Sale Agreement contemporaneously with the Lease
Amendment requiring a closing date of no more than 18 months from the date of execution.
All revenue from the sale of the land will be deposited in the Lake Worth Trust Fund to be used for
capital projects around the lake as approved by the Property Management Director.
This property is located in the COUNCIL DISTRICT 7, Mapsco 44, 45, 46, 58 and 59.
This M&C does not request approval of a contract with a business entity. However, if the 1295 form is
required, it will be provided by the lessee at the time of contract execution.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that Property Management Department will be responsible for the
collection and deposit of funds.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Steve Cooke (5134)
Additional Information Contact: Lester England (8053)
Jean Petr (8367)
ATTACHMENTS
LAKEWORTH RESIDENTIAL LEASES 8x11.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=22991&councildate=11/8/2016 6/2/2017