HomeMy WebLinkAboutIR 10056 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10056
To the Mayor and Members of the City Council October 10, 2017
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s SUBJECT: BURNETT LOFTS GROUND LEASE WITH MANDATORY
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1675 IMPROVEMENTS AND PARKING EASEMENT
On October 28, 2014, the City of Fort Worth (City) entered into a Memorandum of Understanding
(MOU) with Catalyst Urban Development, LLC for the master planning and development of the
Lancaster Avenue corridor in downtown and to initiate execution of a development strategy for
property along Lancaster Avenue. This includes former right of way which came into the City's
possession through the reconfiguration of 1-30. The initial implementation of the development
strategy outlined in the MOU was to begin with a Phase One project located on the block bounded
by Lancaster Avenue, Cherry Street, Texas Street and Lamar Street (Project Site).
On July 1, 2015 (Res. 8-2015-2 as amended on November 2, 2016 by Res. 8-2017-2), the Board
of Tax Increment Reinvestment Zone Number Eight (TIF) authorized execution of a TIF Economic
Development Program Agreement with Catalyst Urban Development, LLC, (Developer) for the
construction of a $38 million, 254-unit multi-family, 6,000 square foot retail and 601 space garage
development (Project) located on the Project Site. The Project Site consists of both publicly and
privately owned property and includes approximately 161 ,007 square feet of land owned by the
City, with two vacant structures totaling approximately 32,249 square feet (City Property). An exhibit
of the City Property is attached to this IR.
The Project calls for the City to enter into a Ground Lease Agreement with the Developer that will,
upon completion of the Project and satisfaction of other Developer commitments, permit the
conveyance of the City Property to the Developer in exchange for a permanent 185 space parking
easement within the constructed parking garage (authorized under Texas Local Government Code
272.001 (b)(6)). The City Property has been appraised at $4,830,000.00 and the total cost of
development and maintenance expenses of the parking easement is estimated to be approximately
$4,947,498.00.
An M&C will be submitted for consideration at the October 17, 2017 City Council Meeting
authorizing the City to enter into the Ground Lease Agreement and thereby authorizing conveyance
of the City Property in exchange for the parking easement, and staff is recommending approval.
If you have any questions concerning this information, please contact Robert Sturns, Economic
Development Director at 817-212-2663 or robert.sturns@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
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