HomeMy WebLinkAboutContract 33593-A1 CITY SECRE'T'ARY
CONTRACT N0. � f_ S
FIRST AMENDMENT TO AGREEMENT CONCERNING CREATION AND
OPERATION OF CITY OF FORT WORTH MUNICIPAL UTILITY DISTRICT NO. 2
OF TARRANT COUNTY
This First Amendment to Agreement Concerning Creation and Operation of City of Fort
Worth Municipal Utility District No. 2 of Tarrant County(this "First Amendment") is entered into
among the City of Fort Worth, Texas, a home-rule municipal corporation situated in Tarrant,
Denton, Johnson, Parker, and Wise Counties, Texas (the "CLAY'), acting by and through its duly
authorized Assistant City Manager; 351 Development LLC, a Texas limited liability company,
L. O. Haywire Investments, LP, a Texas limited partnership (collectively, "Owner"); and Live
Oak Creek Municipal Utility District No. 1 of Tarrant County, formerly known as City of Fort
Worth Municipal Utility District No. 2 of Tarrant County, a municipal utility district located
within Tarrant County, Texas, created pursuant to Article XVI, Section 59, of the Texas
Constitution, Chapters 49 and 54 of the Texas Water Code, and Chapter 8139, Special District
Local Laws Code (the "District") (collectively, the "Parties"), effective upon execution of this
First Amendment by all Parties (the "Effective Date").
RECITALS
WHEREAS, the City, W/J Haywire I LP and Fort Worth Municipal Utility District No. 2
of Tarrant County entered into that certain Agreement Concerning Creation and Operation of City
of Fort Worth Municipal Utility District No. 2 of Tarrant County effective August 21, 2006 (CSC
No. 33593) (the "Agreement"); and
WHEREAS, W/J Haywire I LP sold 133.138 acres of land in the District to L.O. Haywire,
LP and 23.711 acres of land in the District to 351 Development, LLC on or about December 19,
2016, all of which is undeveloped or in the process of being developed; and
WHEREAS, the remainder of the land in the District is owned by end-buyers of single-
family homes; and
WHEREAS, the development of the land within the District is now known as Live Oak
Creek; and
WHEREAS, the Parties wish to amend the Agreement to update certain information, to
extend deadlines concerning issuance of Bonds and reimbursement of developers by the District,
and to require the District to levy a specified ad valorem tax rate and establish a fund to assist the
City in absorbing the costs of the District upon annexation, of all land within the District and
dissolution of the District;
NOW, THEREFORE, in consideration of the premises, mutual promises, covenants,
obligations, and benefits herein contained, the City, Owner, and the District agree ' ows:
?_ 3
OFFICIAL RECO�tD . '
First Amendment to Creation Agreement—Page 1 CITY SECRETARY .` RECEIVE F
FT WORTH, TX OCT 1 2 2017
Y o��oHn���:� �
-— - , „;sFCRP_
1. The definition of"Development Agreement"is hereby changed to:
"Development Agreement" means the Development Agreement Between the City of Fort
Worth and W/J Haywire I LP for Haywire Ranch (CSC No. 33594), as amended by that
certain First Amendment to Development Agreement between the City and W/J Haywire
I LP between City and Owner effective (CSC No. ).
2. Section 5.05(e) is amended to read as follows:
No Bonds shall be issued having an issuance date after November 15, 2031, without the
City's written approval; and
3. Section 5.12(b) is amended to read as follows:
All agreements entered into by the District with landowners or developers for
reimbursement of costs incurred in connection with the District shall provide that: (i) the
District will not reimburse the landowner or developer for costs not evidenced by the
issuance of Bonds on or before November 15, 2031; and (ii) the landowner or developer
waives all claims against the City for reimbursement of obligations not evidenced by the
issuance of Bonds on or before November 15, 2031.
4. A new section 5.14, "District Tax Rate; Establishment of Fund" is added, to read as
follows:
Beginning January I, 2018 and each year thereafter, the District shall levy a total ad
valorem tax rate(including its debt service tax rate and maintenance and operation tax rate)
of no less than $1.00 per $100 valuation. Monies collected through such tax shall be used
to pay the debt service on the District's outstanding bonds, operating costs of the District,
any other legally allowable costs of the District, and to establish a fund to assist the City in
absorbing the costs of the District when it annexes all the land in the District and dissolves
the District.
5. Within 30 days after the Effective Date, the District shall file an amended Annexation
Notice in the form attached hereto as Exhibit A, in accordance with Section 11.03 of the
Agreement.
6. The Notice addresses in Section 14.01 for the District and Owner are replaced in. their
entirety as set out below and the address for the City is updated as follows:
To the City:
200 Texas Street
Fort Worth, TX 76102
First Amendment to Creation Agreement—Page 2
To the District:
Live Oak Creek Municipal Utility District No. 1 of Tarrant County
c/o Coats Rose
14755 Preston Road, Suite 600
Dallas, TX 75254
Attn: Mindy Koehne
To the Owner:
L. O. Haywire Investments, LP
2727 Routh Street
Dallas, TX 75201
351 Development LLC
2727 Routh Street
Dallas, TX 75201
7. Except as specifically amended in this First Amendment, the Agreement shall remain in
full force and effect in accordance with its original terms and conditions.
[The remainder of the page is intentionally left blank.]
First Amendment to Creation Agreement—Page 3
IN WITNESS WHEREOF, each Party has caused this First Amendment to be executed by
its undersigned duly authorized representative in multiple copies on the date or dates indicated
below.
ATTEST: CITY OF FORT WORTH
t _
S fi— T � B
Mary Kayser City Seer R � y Jay Chapa, Assistant City anager
U = te:
i
XAS
APPROVED AS TO FORNI AND
LEGALITY:
`Jma� 'N
Assistant City Attorney
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me, on the ay of &tkbI -J, 2017,
by Jay Chapa, Assistant City Manager of the City of Fort Worth, Texas on behalf of said city.
[S Notary Public, Sta�offeas
MARIA S.SANCHEZ
My Notary(D#2256490 �l
Expires December 19,2021 printed Name: f t k< � n��
P
ov 1 y�
My Commission Expires: I�-
OFFICIAL RECORD
CITY SECRETARY
First Amendment to Creation Agreement-Page 4 FT, WORTH, TX
351 DEVELOPMENT, LLC,
a Texas limited liability company
By:
Bob Ladd, Manager
Date: 2 % , r
STATE OF TEXAS §
COUNTY OF72,7;4,4,y §
This instrument was acknowledged before me, on the day of_ ��v C , 2017,
by Bob Ladd, Manager of 351 Development, LLC, a Texas limited liability co parry, on behalf
of said limited liability company.
otary P blic, State of Texas
[SEAL]
Printed Name:
n 2
My Commission Expires:
`•J1pw� MILDRED P A C H E C 0 (DOUGLAS)
Notary Public,state of Texas
sig= My commission Expires
+•`' July 03, 2018
OFFICIAL RECORD
First Amendment to Creation Agreement—Page 5 CITY SECRETARY
FT WORTH, TX
L.O. HAYWIRE INVESTMENTS L.P.,
a Texas limited liability partnership
By: L.O. Haywire Investments GP LLC,
a Texas limited liability company,
Gener ner
7 L—",-
By:
Bob Ladd, Manager
Date: G
STATE OF TLY AS §
COUNTY OF §
This instrument was acknowledged before me, on the day of L , 2017,
by Bob Ladd, Manager of L.O. Haywire Investments GP LLC, general partner L.O. Haywire
Investments L.P., a Texas limited partnership, on behalf of said liRuted p nership.
Notary Public, State of Texas
[SEAL] /
Printed Name: CJ ��
My Commission Expires: ` I , 3`"
iaa.P�'.,MILDRED PACHECO (DOUGLAS)
Notary Public, State of Texas
y My Commission Expires
July 03, 2018
OFFICIAL RECORD
First Amendment to Creation Agreement–Page 6CITy 3EC
FRETARy
7'. WORTH,TX
LIVE OAK CREEK MUNICIPAL UTILITY
DISTRICT NO. 1 OF TARRANT COUNTY
B y: L, L..
President, Board of Directors
Date: 7 1 -7
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me, on the Lej[U day of , 2017,
by �W rl(10f f 15 ,President, Board of Directors of (,l V L J�V-k CAJL�L Municipal Utility
District No. 1 of Tarrant County, on behalf of said district.
JJ,+flg!
>Q.SN11 y pU '''s, Notary Public, State of Texas
[SEAL] °o� Ud'C;••S'
N 'm= Printed Name: SQ �J I U e-
OF
' ?�! M Commission Expires: 2 O2
Ji+�9 Est1;A��
OFFICIAL RECORL)
CITY SECRETARY
" ItTH, 'I'�(
First Amendment to Creation Agreement-Page 7 T.
006929.000001\4824-7848-3791.v 1
Exhibit A
STATE OF TEXAS
COUNTY OF TARRANT
NOTICE CONCERNING ANNEXATION AND SERVICES
The real property described in Exhibit A attached hereto and incorporated herein is located
in Live Oak Creek Municipal Utility District No. 1 of Tarrant County, formerly known as City of
Fort Worth Municipal Utility District No. 2 of Tarrant County (the "District"). The District is
located wholly within the extraterritorial jurisdiction of the City of Fort Worth. The City of Fort
Worth does not impose property taxes within the District and is not required by state law to provide
police protection, fire protection, road maintenance or any other municipal services to the District.
The City of Fort Worth may annex the District for full purposes upon the earlier to occur
o£
(1) Dissolution of the District; or
(2) November 15, 2031.
For additional information concerning potential annexation of the District, contact the City of Fort
Worth Planning and Development Director.
LIVE OAK CREEK MUNICIPAL UTILITY
DISTRICT NO. i OF TA,�RANT COUNTY
By: -,�/''
President, Board of Director
OFFICIAL RECORD
CI'T'Y SECRETARY
FT- WORFH£ TX
Exhibit A to First Amendment to Creation Agreement— Page 1
006929.000001\4824-7848-3791.v 1
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me, on the ]%day of , 2017,
by_ Q I Mjgrt� President, Board of Directors of Live Oak Creek Municipal Utility District
No. 1 of Tarrant County, on behalf of said district.
�ia`a�tgttttttatie�,�a
era SMITy M0 Notary Public, State of Texas
Printed Name: Mel)SGS SM; M L, ICA- L)
of Io�y My Commission Expires: L?-2-5- 20-20
A'•.,2115?.,":'Q ��
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OFFICIAL RECORD
Exhibit A to First Amendment to Creation Agreement-Page 2 CITE` SECRETARY
Ft. WORTH, 11'X
006929.000001\4824-7848-3791.v1
Exhibit A
BEING all that tract of land in Tarrant Count}, Texas, being all of 'lie J.T. ALLEN
SURVEV, Abstract \o. 67, and a portion of the C.E. NEWMAN SLRVEY, Abstract
NO. 1183, the W.K. GA_'vDY SURVEY, Abstract No. 1890, the P.A .
SCHODEVERLTING S[.`RVEY, Abstract 1`0. 1398, the C.E.P.I. MFG COMPANTY
SURVEY, Abstract leo. 382, the T. & N.O. R.R. COMPANY SURVEY, Abstract leo.
1366, and The S.B. 110PKLN-S SURVEY, Abstract No. 672, and being a portion of the
738.20 acre Tract of land conveved to OBIS P_ LEONARD, JR., R.W. LEONARD,
14ZARGERY A\ HODGES, and N•1.ARTHA JANE AtiTHO 7', by the deed recorded
in Volume 4897, Paee 237 of the Deed Records of Tarrant Country, Texas, and being
further described as follows:
BEGIN- ING at a P.K. nail set at the Southwest corner of the aforesaid 738.20 acre Tract
of land said point Iying in the approximate center line of White Settlement Road, and also
being the Southeast corner of the Tract of land conveyed to J.J. DEAR I G A2'�TD BETSY
JO DEARI'vG BRO,sVDER by the deed recorded in,Volume 5317, Page 475 of the Deed
Records of Tarrant County, Texas, and ROBERT DEARti`G 13RO�VDER by the deed
recorded in Volume 14336, Page 556 of the Deed Records of Ta: ant County, Texas;
Tl:NCE Borth 00 decrees 00 minutes 45 seconds gest, at 25.00 feet, passing a five-
eighths inch iron rod found in the North right-of-way line of l'Y'hite Settlement Road, in
all 47 03.06 feet, along the west boundary line of said 738.20 acre Tract of land and, the
East boundary line of the aforesaid J.J DEARLNG, BETSY JO DEARING, and ROBERT
DE.ARL'NG BROVV?�ER TRACT to a one-half inch iron rod set for corner,
THENCE North 89 devees 59 minutes 15 seconds East, 163.32 fetit, departing the \Fest
boundary line of said 738.20 acre T ract to a one-half inch iron rod set for comer,
THEN-CE North 69 degrees 31 minutes 20 seconds East, 120.00 feet to a one-half inch
iron rod set for corner lying in a curve to the left;
THENCE Southeasterly, 733.50 feet, along said curve to the left having a radius of
2230.00 feet, center angle of IS degrees 50 minutes 45 seconds, chord bearing South 29
degrees 54 minutes 03 seconds East, 7')O. feet to a one-half inch iron rod set at the end
of said curve;
THF.NCF South 39 degrees 19 minutes 25 seconds East; 1034.09 feet to a one-half inch
iron rod set for corner;
TIIE_'C I' North 50 degrees 40 minutes 35 seconds East, 132.28 feet to a three-fourths
inch iron rod hound at the inner L. corner of the East boundary Line of the aforesaid
7,8.20 acre Tract, said point beim the Southwest corner of the Tract of land conveved to
JACK G. WILKINSON and EL\:A WILKLNSON b�, the deeds recorded in Volume
5368, Page 5-4, and Parc 547, Volume 5399, Page 91, and Pa-,,e 94 of the Deeds
Recorded in Ta ant Count-, Texas and to BRUC.i 1 ,__K SOti and CARUI.Y't
WILKINSON FIERER recorded in Volume 7800,Page 2290 and Page 2293 of the Deed
Rc--cords of Tarrant County, Texas.
THENCE North S9 degrees 53 minutes 04 seconds East, 1850.88 feet along the Northerly
boundary line of said -1138.20 acre Tract and the South boundary line of the aforesaid
JACK G. WILKINSON AND ELNA WILKINSON, and BRUCE 1j.'1"LKIN'SON AND
CAROLYN WILKINSON F 1 R.ER Tract to a one-inch iron pipe found at an angle point
in the East boundary line of tare aforesaid 738.20 acre T,:act of land; said point being the
Northwest corner of the Tract of land conveyed to WESTPOINT INVESTORS
LINMJl7]»D PARTNERSHIP recorded in the Deed Records of Tarrant County, .Texas
under County Clerk's file number D204187877,
THENCE South 00 degrees 29 minutes 40 seconds East, 3058.94 feet along the West
boundary line of said WESTPOINT TENVESTORS LLkUTED PAR NERSHIP and the
East boundary line of the aforesaid 738.20 acre Tract of land to afire-eighths inch iron
rod found at the most Easterly Southeast corner of the aforesaid 738.20 acre Tract of
land, and an angle point in the aforesaid WESTPOLNT INVESTORS LEMITED
PART\ _RSHIP Tract;
TTIENCE South 89 degrees 37 minutes 12 seconds West, 2036.40 feet along the
'_northerly boundary line of the aforesaid WESTPOEN7 INVESTORS LEMITED
PARTN-RSH.P Tract, and the North boundary line of a Tract of land conveyed to
GENF A. T=IOMPSON according to the deed recorded inVolume 6429,Pave 104 of the
Doed Records of Tarrant County, Texas, and the North boundary line of a Tract of land
conveyed to ROBERT DEAN JOHNSON according to the deed recorded in. Volume
14336, Page 514 and 515, Volume 14208,Page 33, and Volume 14221,Page 114 of the
Deeds Records of Tarrant County, Texas and the North boundary line of the Tract of
land conveyed to HAROLD V. JOHNSON,, III,recorded in the Deed Records of Tarrant
County, Texas, under County Clerk's file number D203289978, to a one-half inch iron
rod set at the Northwest corner of the aforesaid HAROLD V. JOHNSON, III, Tract. Said
point being an angle point in the boundary line of the aforesaid 738.20 acre Tract of land;
THENCE South 00 degrees 28 minutes 56 seconds East, 638.10 feet along the West
boundary line of the aforesaid HAROLD V. JOHNSON, 111, Tract and the East boundary
line of said 738.20 acre Tract to a P.K. nail set in the approximate center line of the `
aforesaid 'NEte Settlement Road from which a five-elt liths inch iron rod found lies
North 00 degrees 28 minutes 56 seconds West,25.00 feet-,
THENC F Nor-11 75 degrees 57 minutes 38 seconds West, 1280.87 z along the
approximate center Iine of ^.Mite Settlement.Road and the Southerly boundary line ofthe
aforesaid 738?0 acre Traci of land to Ti PLACE OF 13-G1'�`NING and containing
11,520,896 square feet or_264.483 acres of lard.
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 9/12/2017
DATE: Tuesday, September 12, 2017 REFERENCE NO.: **L-16074
LOG NAME: 06AMEND LIVE OAK RANCH MUD DEVELOPMENT &CREATION AGREEMENTS
SUBJECT:
Authorize Execution of First Amendment to Development Agreement for Live Oak Ranch and First
Amendment to Agreement Concerning Creation and Operation of Fort Worth Municipal Utility District No. 2
of Tarrant County so as to Extend the Terms of These Agreements to November 15, 2031 (ETJ NEAR
COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager or a designee to execute the following
agreements and take any actions to carry out such agreements:
1. First Amendment to Development Agreement for Live Oak Ranch; and
2. First Amendment to Agreement Concerning Creation and Operation of Fort Worth Municipal Utility
District No. 2 of Tarrant County.
DISCUSSION:
Fort Worth Municipal Utility District No. 2 of Tarrant County (District) encompasses 265.02 acres of land
on White Settlement Road in Fort Worth's extraterritorial jurisdiction. The District was created by special
act of the Texas Legislature in 2005. The City Council adopted Resolution No. 3359-05-2996 consenting
to creation of the District on May 30, 2006, consistent with legislation creating the district. The City
Council also approved the Agreement Concerning Creation and Operation of City of Fort Worth Municipal
Utility District No. 2 of Tarrant County City Secretary Contract(CSC No. 33593) and Development
Agreement Between the City of Fort Worth, Texas and W/J Haywire I LP, for Haywire Ranch, Phase 1
(CSC No. 33594).
Approximately 230 homes have been completed or are under construction within the District. The
remaining developable land has been purchased from W/J Haywire I LP by 351 Development, LLC, and
L.O. Haywire Investments LP. The development is now known as Live Oak Ranch.
The 2006 Agreements established November 15, 2021 for the District to issue bonds for reimbursement of
infrastructure costs. The District and the current owners have asked the City to extend the deadline to
issue bonds and the term of the Development Agreement to November 15, 2031. Such extensions are
consistent with extensions approved by the City Council for other districts in the City's extraterritorial
jurisdiction. At the City's request, the District has agreed to levy an ad valorem tax rate of not less than
$1.00 per$100.00 valuation, which funds will be used to pay District expenses and to establish a fund to
assist the City in absorbing the costs of the District when the City annexes all land in the District and
dissolves the District.
The property is located in the City's extraterritorial jurisdiction adjacent to COUNCIL DISTRICT 3.
FISCAL INFORMATION /CERTIFICATION:
The Director of Finance certifies that approval of the resolution and agreements will have no immediate
material effect on City funds. Any effect on expenditures and revenues will be budgeted in future fiscal
years.
FUND IDENTIFIERS (FIDS):
TO
Fund Department ccount Project Program Activity Budget Reference# mount
ID ID Year (Chartfield 2)
Logname: 06AMEND LIVE OAK RANCH MUD DEVELOPMENT CREATION AGREEMENTS Page 1 of 2
FROM
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Randle Harwood (6101)
Additional Information Contact: Mary Elliott (7844)
Logname: 06AMEND LIVE OAK RANCH MUD DEVELOPMENT CREATION AGREEMENTS Page 2 of 2
Live Oak Creek Ranch No. 1
Municipal Utility District - Approximately 265.02 Acres
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'T E SET T�EMENT
Live Oak Creek Ranch No. 1 Adjacent Cities
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Special Districts County Boundaries Planning&Development Department ��R
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812412017
Fort Worth City Limit(Full Purpose) 1:12,000
Fort Worth City Limit(Limited Purpose) COPYRIGHT 2017 CITY OF FORT WORTH UNAUTHORIZED REPRO-
DUCTION IS A VIOLATION OF APPLICABLE LAWS. THIS DATA IS TO
Fort Worth ETJ 0 250 500 1,000 Feet BE USED FOR A GRAPHICAL REPRESENTATION ONLY. THE AC-
CURACY IS NOT TO BE TAKEN/USED AS DATA PRODUCED FOR
ENGINEERING PURPOSES OR BY A REGISTERED PROFESSIONAL
LAND SURVEYOR. THE CITY OF FORT WORTH ASSUMES NO RE-
SPONSIBILITY FOR THE ACCURACY OF SAID DATA.