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HomeMy WebLinkAboutIR 10205 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 10205 To the Mayor and Members of the City Council December 4, 2018 Page 1 of 1 NL i7 Y SUBJECT: AMENDMENT TO ECONOMIC DEVELOPMENT PROGRAM rrn AGREEMENT WITH FW WATERSIDE PARTNERS LLC TO EXTEND THE COMPLETION DEADLINE FOR THE SECOND PHASE On March 4, 2014 (M&C C-26698), the City Council authorized execution of an Economic Development Program Agreement (Agreement) with Trademark Property Company or an affiliate related to a mixed-use project to be constructed on the west side of Bryant Irvin Road at Arborlawn Drive at the former site of the Lockheed Martin Recreation Area in southwest Fort Worth. The planned development was to be constructed in three phases, with the second phase to be completed by December 31 , 2018. City Secretary Contract No. 45725 provides that deadlines established by the Agreement may be extended on account of events that cause delays and that are not the fault of the performing party (identified in the Agreement as events of force majeure). On March 21 , 2017 (M&C C-28149), the City Council approved an amendment to change the completion deadline for the first phase of the development from March 19, 2017 to August 1 , 2017 as a result of inclement weather. The developer also waived any further claims for force majeure through the effective date of the amendment. However, that waiver only applied to Phase I. In February 2018, the developer notified the City by letter that various events of inclement weather occurring between January 1 , 2017 and February 28, 2018 impacted their Phase II development. The developer also cited unforeseen permitting delays, primarily associated with necessary reviews by the Army Corp. of Engineers, occurring between August 25, 2016 and April 31 , 2017. Both events of delay are constituted events of force majeure under the Agreement. The developer provided City staff with documentation to substantiate a total of a 204 day delay during that period. At that time, the developer was uncertain as to how much time would specifically be needed past the December 31 , 2018 deadline for Phase II completion, so the developer and City staff agreed to delay action until late 2018. In August 2018, the developer met with City staff to officially request the extension for Phase II and staff began efforts to substantiate the request. As a result of those efforts, City staff recommends that the Agreement be amended to change the completion deadline for the second phase of the development from December 31 , 2018 to June 15, 2019. Staff will place an M&C for City Council consideration on the December 11 , 2018 agenda. If you have any questions concerning this information, please contact Robert Sturns, Economic Development Director at 817-392-2663 or robert.sturns@fortworthtexas.gov. David Cooke City Manager ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS