HomeMy WebLinkAboutContract 49193 CITY SECRUARY
CONTRACT N0.
LEASE AMENDMENT
TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
This LEASE AMENDMENT TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
("Amendment")is entered into by and between Enchanted Holdings, LTD ("Tenant") and City of Fort
Worth, a Texas home rule municipal corporation("Landlord").
WHEREAS,Landlord entered into a ground lease("Lease")on March 30, 1982 with James E.Teser,etux,
Mary L. Rogers,the original lessee under the Lease Agreement for property located at 2250 W Loop 820
N, with a legal description more particularly described as Lots 34 & 34A Block 29, Lake Worth Leases
Addition,Fort Worth,Tarrant County, TX(the"Leased Premises"), said Lease attached hereto as Exhibit
"A";
WHEREAS, through assignment(s), the Lease is now between Landlord and Tenant for the Leased
Premises, and such Lease has a fifty year term ending on February 1,2032;
WHEREAS,pursuant to Section 272.001(h)of the Local Government Code,Landlord is authorized to sell
the property to the person leasing the land for the fair market value of the land as determined by a certified
appraiser;
WHEREAS, Landlord and Tenant desire to effect a sale of the Leased Premises from Landlord to Tenant
under Section 272.001(h) of the Local Government Code for the fair market value of the land, and,
contemporaneously with this Amendment, is entering into a Purchase and Sale Agreement for the purchase
of the Leased Premises by Tenant within eighteen (18) months of the execution of the Purchase and Sale
Agreement; and
WHEREAS, the existing Lease does not provide for terms of disposition of the Leased Premises in the
event of a sale or for the terms of the termination of the Lease in the event of a failure to purchase the
Leased Premises under the Purchase and Sale Agreement, and the parties desire to amend the Lease to
provide for such terms.
HEREFORE, in consideration of the mutual agreements herein and other good and valuable
lconsi t ,the parties agree as follows:
a �
REcEN :o N
0 2011
of V0A1 w01R+ A ��E O w ,RECORD
cnvcoirvwm cn ent-2250 N. Loop 820 eonf f
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6 n�"V R71JP 11 L11
1. Term. The term of the Lease is hereby amended to end upon the closing of the sale of the Leased
Premises under the Purchase and Sale Agreement, which shall occur within eighteen (18) months
after the Amendment Effective Date("Closing Deadline"). If the closing of the sale of the Leased
Premises has not occurred by the Closing Deadline,this Lease shall expire on the Closing Deadline.
2. Expiration of Lease. Section VII EXPIRATION OF LEASE is hereby deleted in its entirety and
replaced with the following:
"VII. EXPIRATION OF LEASE
A. Any buildings, improvements, additions, alterations, and fixtures (except furniture and
trade fixtures)constructed,placed,or maintained on any part of the Leased Premises during
the lease term are considered part of the real property of the Landlord and must remain on
the Leased Premises and become Landlord's property when the Lease terminates.
B. Before the Lease terminates, Tenant shall remove all personal property, furniture,
machinery,or equipment in,under,or on the Leased Premises.Before the Lease terminates,
Tenant must repair any damage to any buildings or improvements on the Leased Premises
resulting from the removal.Any such items not removed by the lease termination date will
become Landlord's property on that date."
3. Ownership of Improvements. Section X OWNERSHIP OF IMPROVEMENTS is hereby
amended by adding the following sentence at the end of the Section: "Upon expiration of this
Lease through the closing of the sale of the Leased Premises under the Purchase and Sale
Agreement, Tenant shall retain all right, title, and interest in the improvements on the Leased
Premises; however, upon the expiration of this Lease without a closing of the sale of the Leased
Premises under the Purchase and Sale Agreement, all right, title, and interest in the improvements
on the Leased Premises shall vest in Landlord without further payment by Landlord to Tenant for
the improvements, and Tenant shall not have any right to enter upon the Leased Premises."
4. Continued Terms and Provisions. All of the terms and provisions of the Lease between the
parties shall remain in full force and effect except as specifically amended herein.
Lease Amendment-2250 N. Loop 820
Executed to be effective as of the date this Amendment is notarized by the City
("Amendment Effective Date").
LANDLORD:
CITY OF FORT WORTH,TEXAS,
a Texas municipal corporation
By: 667777�
Jesus Chapa, Assistant City Manager
APPROVED AS TO FORM AND
LErALITY:
t,
tAssistant City Attey
M&C: L-15964
ATTEST:
qty ec etas a�
..........
•.
City of Fort Worth Contract Compliance
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.
(Z:::;*
Name of Employ e: ester Eng and
Title: Sr. Land Agent
Lease Amendment-2250 N. Loop 820
TENANT:
E1
Enchanted Holdings-,!
a Domestic Limited Partnership
by: Enchanted Holdings Management, LLC
its General Partner
by: George Galloway, Manager
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the j_ day o 2017, by Jesus
J. Chapa,Assistant City Manager of the City of Fort Worth, a Texas 4icipal corporation, on
behalf of that entity.
% MARIA S SANCHEZ
My Cc,mmission Expires
l� December 19, 2017 ZiL
Not y Public
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the day of 2017, by
:`o�.•,•„"e%4 LURER EUGENE GND
0.Y p�Z��
Notary Public,StateENofLATexas
ars na'
My Commission Expires
June 28, 2018 X5�547V-:%w lef
Notary Publiv-
Lease Amendment-2250 N. Loop 820
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M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA FOR ll
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
http://apps.cfwnet.org/council_packet/Mc_review.asp?ID=22991&councildate=11/8/2016 6/16/2017
M&C Review Page 2 of 2
amendment at which time the improvements would become property of the City.
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 8xll.pdf
http://apps.cfwnet.org/council_packet/mc review.asp?ID=22991&councildate=11/8/2016 6/16/2017