Loading...
HomeMy WebLinkAboutContract 50170-ES1 Developer and Project Information Cover Sheet: Developer Company Name: PB Ventana 1,LLC Address, State,Zip Code: 4145 Travis St., Suite 202,Dallas,TX 75204 Phone&Email: 214-954-7008,tavlor aPpmbinv.com Authorized Signatory,Title: Taylor Baird,Manager Project Name and Brief Ventana Phase 2 Description: Project Location: SW quadrant of Aledo and FM 2871 Plat Case Number: FP17-071 Plat Name: Ventana Phase 2 Mapsco: 86N Council District: 3 City Project Number: 101127 CFA Number: 2017-110 DOE Number: None OFFICIAL RECORD City of Fort Worth,Texas CITY SECRETARY Escrow Pledge Agreement to replace Completion Agreement FT. WORTH,TX CPA Official Release Date: 10.31.2016 Page 1 of 10 ESCROW AGREEMENT 50170-ES1 THIS ESCROW AGREEMENT(the"Agreement"),entered into as of this 12th day of December , 2018 , by and among PB Ventana 1 LLC , ("Developer"), the City of Fort Worth, a Texas municipal corporation ("Fort Worth") and Ciera Bank("Escrow Agent") is to witness the following: WHEREAS, Developer and Fort Worth have entered into a Community Facilities Agreement for Ventana Phase 2, City Project Number 2017-110,) in the City of Fort Worth, Tarrant County, Texas (the "CFA"); and WHEREAS, the CFA provides that Developer shall submit to Fort Worth performance bonds, cash deposits or other financial security acceptable to Fort Worth (collectively, the "Financial Security") for the purpose of guaranteeing satisfactory compliance by Developer with all requirements,terms, and conditions of the CFA (the "CFA Obligations"); and WHEREAS,the Developer previously executed a Completion Agreement(City Secretary Contract No. 50170 as financial security for the project; and WHEREAS,the Developer desires to replace the Completion Agreement with this Escrow Agreement; and WHEREAS, City staff has determined that the amount of this Escrow Agreement is adequate financial security to guarantee satisfactory compliance by the Developer with the remaining CFA Obligations; and WHEREAS, Developer and Fort Worth desire and agree that Developer be allowed to escrow and pledge cash deposits to Fort Worth, to be held by Escrow Agent, as an escrow agent, in complete satisfaction of the obligation to submit the Financial Security to secure the performance of the CFA Obligations. NOW THEREFORE, for and in consideration of these recitals, ten dollars ($10.00) and other good and valuable consideration,the receipt, sufficiency and adequacy of which are hereby acknowledged,the parties hereto hereby agree as follows: SECTION 1. DEFINED TERMS. For the purposes of this Agreement, unless the context otherwise clearly requires, the following terms shall have the following meanings: "Security Funds" shall mean the cash deposit of seven hundred thirty-might thousand one hundred twenty-five and 19/100 Dollars($738,125.19)which sum represents one hundred twenty-five percent (125%) of the estimated Developer's cost of constructing the remaining CFA Obligations (the"Estimated Developer's Cost"). City of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement OFFICIAL.RECORD CFA Official Release Date: 10.31.2016 CITY SECRETARY Page 2 of 10 FT.WORTH,TX "Lien" shall mean any lien, security interest, charge, tax lien, pledge or encumbrance designed to secure the repayment of indebtedness or the satisfaction of any other obligation to a third party not a party of this Agreement. SECTION 2. SECURITY FUNDS. As financial security for the full and punctual performance of the remaining CFA Obligations,Developer hereby pledges,assigns, and transfers to Fort Worth, and hereby grants to Fort Worth a security interest in the Security Funds and all rights and privileges pertaining thereto with the exception of the interest income to be derived therefrom (which interest income shall remain the property of Developer and shall be distributed by Escrow Agent in accordance with Developer's periodic instructions) subject, however, to the terms, covenants, and conditions hereinafter set forth. The security interest granted and the assignments made hereunder are made as security only and shall not subject the City of Fort Worth or Escrow Agent to, or transfer or in any way affect or modify,any obligation of Developer with respect to the CFA Obligations or any transaction involving or giving rise therefrom. SECTION 3. PHYSICAL POSSESSION OF SECURITY FUNDS. Concurrently with the execution of this Agreement, Developer shall have delivered to and deposited with Escrow Agent the Security Funds. The parties acknowledge and agree that Escrow Agent shall be required to segregate the Security Funds from other funds held by Escrow Agent for Developer in accordance with the normal practices of Escrow Agent acting as an escrow agent. Escrow Agent shall return all funds on deposit representing or evidencing the Security Funds remaining in its possession to Developer (or take such other action as Developer may request or direct) immediately after receipt of written notice from Fort Worth that the CFA Obligations have been fully performed. During such time as Escrow Agent has possession of the Security Funds, Escrow Agent shall furnish to the City of Fort Worth (when requested by Fort Worth) written acknowledgments signed by an officer of Escrow Agent detailing the amount of the Security Funds. Fort Worth's rights in the Security Funds shall be superior to those of Escrow Agent's notwithstanding any terms or understandings (written or otherwise) between Developer and Escrow Agent. SECTION 4. COVENANTS. (a) Affirmative Covenants. So long as any of the CFA Obligations remain unperformed, Developer covenants and agrees that Developer will: (i) from time to time execute and deliver to Fort Worth all such assignments, certificates, supplemental writings, and other items and do all other acts or things as Fort Worth may reasonably request in order to evidence and perfect the security interest of Fort Worth in the Security Funds; (ii) furnish Fort Worth with information which Fort Worth may reasonably request concerning the Security Funds; City of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement CFA Official Release Date: 10.31.2016 Page 3 of 10 (iii) notify Fort Worth of any claim, action, or proceeding affecting title to the Security Funds or Fort Worth's security interest(s)therein; and (iv) adjust the Security Funds to an amount equal to the actual contract price, including revisions thereto, if the original Security Funds were based on an engineer's estimate of costs. (b) Negative Covenants. So long as any of the CFA Obligations remain unperformed, Developer covenants and agrees that Developer will not: (i) assign or transfer any rights of Developer in the Security Funds; or (ii) Create any Lien in the Security Funds, or any part thereof, or permit the same to be or become subject to any Lien except the security interest herein created in favor of Fort Worth. SECTION 5. EVENTS OF DEFAULT. Developer shall be in default under this Agreement only upon the happening of any of the following events(a"Default"): (a) default in the timely payment for or performance of the CFA Obligations after written notice thereof has been given to Developer and Escrow Agent and such default is not cured within seven(7)days after such notice; (b) any affirmative or negative covenant is breached by Developer. SECTION 6. RIGHTS AND REMEDIES OF FORT WORTH UPON AND AFTER DEFAULT. (a) Remedy. Upon the occurrence of a Default, Fort Worth shall have the right to direct Escrow Agent to transfer to Fort Worth all of the Security Funds. Escrow Agent is hereby authorized to transfer the Security Funds immediately upon the receipt of a written statement purporting to be executed by an authorized representative of Fort Worth stating that: (i) a Default by Developer has occurred related to the CFA Obligations; (ii) written notice of such Default has been given by Fort Worth to Developer and Escrow Agent and such Default was not cured within seven (7) days after delivery of such notice; and (iii) Fort Worth is entitled to have the Security Funds transferred in accordance with the Agreement. City of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement CFA Official Release Date: 10.31.2016 Page 4 of 10 (b) Notices.Any notice required or permitted to be given to any party hereto shall be given in writing, shall be personally delivered or mailed by prepaid certified or registered mail to such party at the address set forth below, and shall be effective when actually received. To Developer:PB Ventana 1, LLC Attention: Taylor Baird 4145 Travis, Street, Suite 202 Dallas, TX 75204 To: Escrow Agent: Ciera Bank Attention: Justin Cowart 1501 Summit Avenue Fort Worth,TX 76102 To: City of Fort Worth City Of Fort Worth Attn: City Treasurer 200 Texas Street Fort Worth, TX 76102 With a copy to: City of Fort Worth Attn: CFA/Development Coordination Office 200 Texas Street Fort Worth, TX 76102 Any party may change its address for notice by giving all other parties hereto notice to such change in the manner set forth in this Section no later than ten (10)days before the effective date of such new address. SECTION 7. EXCLUSIVE RIGHTS AND REMEDIES. If the Developer fails to perform its obligations under the CFA, Fort Worth's sole and exclusive remedy shall be to complete the obligations of Developer at Developer's expense. In furtherance of such sole and exclusive remedy, Fort Worth is entitled to exercise its rights as set forth in Section 6 hereof. SECTION 8. SUBSTITUTION OF COLLATERAL. Cid}'of Fort Worth,Texas Esdrow Pledge Agreement to replace Completion Agreement CF Official Release Date: 10.31.2016 Pa0ee5of10 Notwithstanding any contrary provision in this Agreement,Developer shall have the right, at any time and from time to time, to obtain releases of all or any part of the Security Funds (hereinafter called the "Released Collateral") upon satisfaction of the following conditions: (a)Developer shall provide Fort Worth and Escrow Agent written notice(the"Substitution Notice") that the Developer desires to obtain Released Collateral in exchange for a contemporaneous substitution of an alternate Financial Security acceptable to Fort Worth (as specified and described in the Substitution Notice); and (b) Developer shall pledge to, or obtain for the benefit of Fort Worth, and deliver to Fort Worth the alternate Financial Security acceptable to Fort Worth (the "Substituted Collateral") which Substituted Collateral shall in the aggregate be at least equal to the Estimated Developer's Cost; and (c) Said Substituted Collateral shall be of sufficient amount(s)to cover all work which has occurred prior to the substitution of collateral provided for in this Section. Upon satisfaction of the above-specified conditions, Escrow Agent shall be authorized (without the further consent of Fort Worth) to return to Developer the original Security Funds in Escrow Agent's possession that represent or evidence the Released Collateral or take such other action with respect to the Released Collateral as Developer may request or direct. Developer shall pay the expenses incurred by Escrow Agent In connection with obtaining each such release and substitution. SECTION 9 PERIODIC WITHDRAWAL OF COLLATERAL. Notwithstanding any contrary provision in this Agreement, Developer shall have the right to periodic withdrawals of the Security Funds (hereinafter called the "Withdrawn Collateral"), upon satisfaction of the following conditions: (a) Developer shall provide the City of Fort Worth and Escrow Agent with written notice (the "Withdrawal Notice") that Developer desires to obtain the Withdrawn Collateral in any amount less than or equal to the then-completed CFA Obligations as inspected or accepted by Fort Worth; and (b) the balance of the Security Funds after withdrawal of the Withdrawn Collateral is at least equal to the estimated value of the CFA Obligations then remaining to be performed (such remaining value is hereinafter called the "Estimated Cost to Complete"). The Withdrawal Notice shall include a description of the Withdrawn Collateral and Developer's calculation of the Estimated Cost to Complete.Upon receipt of the Withdrawal Notice,Fort Worth shall have seven (7) calendar days to notify Developer of Fort Worth's objection to Developer's calculation of the Estimated Cost to complete by providing Developer with Fort Worth's calculation of the Estimated Cost to Complete.The grounds for any objection are limited solely to a good faith determination by Fort Worth that the balance of the Security Funds is insufficient to City of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement CFA Official Release Date: 10.31.2016 Page 6 of 10 cover the Estimated Cost to Complete. If Fort Worth fails to timely notify Developer and Escrow Agent of any objection, then Developer's calculation shall be deemed to have been accepted and approved by the City of Fort Worth and Escrow Agent is authorized to release the Withdrawn Collateral requested by Developer without delay. In the event a written objection is timely filed by Fort Worth and Fort Worth's calculation is within a range of five percent (5%) of Developer's Estimated Cost to Complete, then Developer shall be allowed to withdraw the amount corresponding to Fort Worth's calculation of the Estimated Cost to Complete. If Fort Worth's calculation of the Estimated Cost to Complete is outside a range of five percent (5%) of Developer's Estimated Cost to Complete, then Fort Worth and Developer, through a designated representative, will reconcile the calculations and jointly approve an Estimated Cost to Complete and advise Escrow Agent to disburse the amount as jointly determined. If after the expiration of two (2) years from the date of this Agreement either: (i) none of the CFA Obligations have been performed;or (ii) there has been partial performance but the term of the CFA has not been extended by Fort Worth; then in either event, the City of Fort Worth shall be entitled to receive the Security Funds as specified in Section 6 and construct the improvements contemplated in the CFA. SECTION 10. NON-ACCESSIBILITY OF FORT WORTH'S RIGHTS. The rights,powers,and interests held by Fort Worth hereunder in and to the Security Funds may not be transferred or assigned by Fort Worth in whole or in part. Any attempted transfer or assignment shall be absolutely void and shall entitle Developer to a release of all Security Funds. SECTION 11. NO WAIVER. No waiver by Fort Worth of any Default shall be deemed to be a waiver of any other subsequent Default. No delay or omission by Fort Worth in exercising any right or power hereunder shall impair any such right or power or be construed as a waiver thereof, nor shall any single or partial exercise of any such right or power preclude other or further exercise thereof. SECTION 12. BINDING EFFECT. This Agreement shall be binding on the parties,their successors and assigns.No provision of this Agreement may be amended, waived, or modified except pursuant to a written instrument executed by Fort Worth, Escrow Agent and Developer. SECTION 13. CHOICE OF LAW. This Agreement is to be construed and interpreted in accordance with the laws of the State of Texas. Cit of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement CF k Official Release Date: 10.31.2016 Page 7 of 10 SECTION 14. COUNTERPARTS. This Agreement may be executed in any number of multiple counterparts and by different parties on separate counterparts,all of which when taken together shall constitute one and the same agreement. SECTION 15. INDEMNITY. Developer hereby agrees to release,hold harmless,and indemnify Escrow Agent(and its directors, officers, employees, agents and representatives) from and against all claims, damages, expenses, costs, suits and other liability of any kind whatsoever that arise out of or are directly or indirectly related to the performance by Escrow Agent of its duties hereunder except for the gross negligence or willful misconduct of Escrow Agent or its directors, officers, employees, agents or representatives and Developer hereby agrees to release, hold harmless,and indemnify Fort Worth (and its respective directors,officers,employees,agents and representatives) from and against all claims, damages, expenses, costs, suits and other liability of any kind whatsoever that arise out of or are directly or indirectly related to any actions or inaction by Fort Worth with respect to this Agreement. SECTION 16. PAYMENT OF ESCROW FEES Developer will be responsible for the payment of all fees to Escrow Agent associated with this Agreement. REMAINDER OF THIS PAGE INTENTIONALLY BLANK City of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement CFA Official Release Date: 10.31.2016 Page 8 of 10 ACCORDINGLY,the City of Fort Worth,Developer and Escrow Agent have each caused this instrument to be executed in quadruplicate in each entity's respective name by its duly authorized signatories effective as of the date executed by the City Manager or his/her designee. CITY OF FORT WORTH DEVELOPER PB Ventana 1, LLC By: PB Ventana Manager, LLC Jesus J.Chapa(Dec 11,2018) Jesus J. Chapa K.Taylor rrd(Dec6,2018) Assistant City Manager Dec 11, 2018 Name: Taylor Baird Date: Title: Manager Approved at to Form &Legality: Date: Dec 6,2018 Kicliard A NoCracgon ESCROW AGENT Richard A.McCracken(Dec 11,2018) Ciera Bank N.A. Richard A. McCracken Assistant City Attorney M&C No. N/A 7ustuz Co�vsts-f Date: Justin Cowart(Dec 10,2018) Form 1295: N•/A Name: Justin Cowart Title: Executive Vice President ATTEST: F R 7 y Date: Dec 10,2018 A Mary J. ayser(Dec 11, 18) 1,,,, •��` Contract Compliance Manager: Mary J.Kayser CJ *1 By signing, I acknowledge that I am the City Secretary * person responsible for the monitoring and 7E administration of this contract, including ensuring all performance and reporting rei r)ts. Evelyn Robe (Dec 10,2019t Janie Morales Title: Development Manager � OFNUAL RECURD Ci of Fort Worth,Texas CITY SECRETARY Esow � Pledge Agreement to replace Completion Agreement CF Official Release Date: 10.31.2016 � ®R�H��� Page 9of10 - ATTACHMENT "1" Changes to Standard Agreement Escrow Pledge Agreement The Following Recitals were added to the Agreement: WHEREAS, the Developer previously executed a Completion Agreement (City Secretary Contract No. 50170) as financial security for the project;and WHEREAS,the Developer desires to replace the Completion Agreement with this Escrow Agreement; and WHEREAS, City staff has determined that the amount of this Escrow Agreement is adequate financial security to guarantee satisfactory compliance by the Developer with the remaining CFA Obligations; and The definition of"Security Funds" in Section 1 of the Agreement is revised to read as follows: "Security Funds" shall mean the cash deposit of seven hundred thirty-eight thousand one hundred twenty-five and 19/100 dollars ($ 738,125.19 which sum represents one hundred twenty-five percent (125%) of the estimated Developer's cost of constructing the remaining CFA Obligations (the"Estimated Developer's Cost"). Section 2,"Security Funds"is revised to read as follows: SECTION 2. SECURITY FUNDS. As financial security for the full and punctual performance of the remaining CFA Obligations, Developer hereby pledges, assigns, and transfers to Fort Worth, and hereby grants to Fort Worth a security interest in the Security Funds and all rights and privileges pertaining thereto with the exception of the interest income to be derived therefrom(which interest income shall remain the property of Developer and shall be distributed by Escrow Agent in accordance with Developer's periodic instructions)subject,however,to the terms, covenants, and conditions hereinafter set forth. The security interest granted and the assignments made hereunder are made as security only and shall not subject the City of Fort Worth or Escrow Agent to, or transfer or in any way affect or modify, any obligation of Developer with respect to the CFA Obligations or any transaction involving or giving rise therefrom. City of Fort Worth,Texas Escrow Pledge Agreement to replace Completion Agreement CFA Official Release Date: 10.31.2016 Page 9 of 10