HomeMy WebLinkAboutContract 34291 CITY SECRETARY I
CONTRACT NO. '
AMENDMENT NO. 1 TO
COMMUNITY FACILITIES AGREEMENT
This AMENDMENT NO. 1 TO COMMUNITY FACILITIES AGREEMENT
("Amendment") is made and entered into by and between the CITY OF FORT
WORTH ("City"), a home rule municipal corporation organized under the laws of the
State of Texas, and PRESIDIO VISTA I, LTD ("Developer"), a Texas limited
partnership.
RECITALS
A. On or about August 21, 2006, the City and Developer entered into that
certain Community Facilities Agreement (the "Agreement") pursuant to which
Developer agreed to fund and construct certain public improvements (defined in the
Agreement as the "Community Facilities") to the Presidio Vista Addition, an addition to
the City of Fort Worth, Texas (the "Development Site"), including construction of a
portion of North Tarrant Parkway and associated improvements, and to fund the
acquisition of certain real property needed for the Community Facilities project, all as
more specifically set forth in the Agreement. The Agreement is a public document on
file in the City Secretary's Office as City Secretary Contract No. 33886.
B. The Agreement requires Developer to provide financial security to the
City in conformance with the City's Policy for the Installation of Community Facilities
(the "Policy") to ensure completion of the Community Facilities. The Policy allows
Developer the option of depositing 125% of the cost of the Community Facilities project
into an escrow account pursuant to an Escrow Pledge Agreement between the City and
Developer, but does not allow any reduction to the escrow account deposit, through
periodic draws or otherwise, until the Community Facilities have been completed.
C. Developer has requested that the City make an exception to the Policy for
this particular Community Facilities project to allow Developer to make periodic draws
on an escrow account established pursuant to an Escrow Pledge Agreement between the
City and Developer for purposes of satisfying Developer's financial security obligations
under the Agreement. Because the Development Site is located within a tax increment
reinvestment zone (Tax Increment Reinvestment Zone Number Seven, City of Fort
Worth, Texas) and comprises a portion of an area that the City Council has found will not
develop solely through private investment in the foreseeable future without public
assistance and incentives (Ordinance No. 15774), the City is willing to consent to
Developer's request in this specific instance, with the understanding that such consent
shall not be deemed as an amendment to the Policy or as a precedent for future
Community Facilities Agreements to which the City is a party.
Page 1 � ff�v�?!� hai
Amendment No. 1 to Community Facilities Agreement
between City of Fort Worth and Presidio Vista I,Ltd.
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the City and Developer agree as follows:
AGREEMENT
1. The City Council hereby finds, and the City and Developer hereby agree, that the
recitals set forth above are true and correct and form the basis upon which the City has
entered into this Amendment.
2. The Agreement is hereby amended to add the following sentence to the end of
Section I.C:
Notwithstanding anything to the contrary in the Policy or this Agreement,
if Developer elects to provide financial security pursuant to an Escrow
Pledge Agreement between the City and Developer, as permitted by the
Policy, under which Developer initially deposits cash in an amount equal
to 125% of the estimated cost of the Community Facilities into an escrow
account established in accordance with such Escrow Pledge Agreement,
the City and Developer may agree to allow Developer to make timely
withdrawals from such escrow account in an amount equal to construction
work completed, as approved and verified by the Director of the
department having jurisdiction over the work,plus 25%of such amount.
3. This Amendment contains the entire understanding and agreement between the
City and Developer as to the matters specifically contained herein. All terms and
conditions of the Agreement that are not directly amended by this Amendment shall
remain in full force and effect. Capitalized terms used, but not defined, in this
Amendment shall have the meanings assigned to them by the Agreement.
EXECUTED to take effect on the later date indicated below:
Approval Recommended:
Transportation and Public Works Department:
By: �C
✓
R bert Goode, P.E.
Director
Page 2
Amendment No. I to Community Facilities Agreement �Cc, 111 IR,E DD
between City of Fort Worth and Presidio Vista I,Ltd. o /,
CITY OF FORT WORTH: PRESIDIO VISTA I, LTD.,
a Texas limited partnership:
By:GLC FORT WORTH, LLC, a Texas
limited liability company and its
sole general partner
By. By:
Marc Ott Scott D. Wolcott
Assistant City Manager Managing Member
Date: ll—1 y'o(o Date:
APPROVED AS TO FORM AND LEGALITY:
By:
Peter Vaky
Assistant City Attorney
M&C: C^2/7,79 10-2q-0 6
Attesterll B-✓•
n .
Marty HerrdrLx
City Secretary
Page 3 JI�f 11I*�L�!
Amendment No. I to Community Facilities Agreement
between City of Fort Worth and Presidio Vista I,Ltd.
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 10/24/2006
DATE: Tuesday, October 24, 2006
LOG NAME: 20PRESIDIOVISTA REFERENCE NO.: C-21799
SUBJECT:
Authorize Amendment to City Secretary Contract No. 33886, Community Facilities Agreement with
Presidio Vista I, Ltd. for Construction of Portion of North Tarrant Parkway and Associated Public
Improvements
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an amendment to City
Secretary Contract No. 33886, a Community Facilities Agreement (CFA) between the City and Presidio
Vista I, Ltd. (Developer) for construction of a portion of North Tarrant Parkway and associated public
improvements (the Project), allowing Developer to provide financial security to the City through an Escrow
Pledge Agreement that allows Developer to make periodic withdrawals as portions of the Project are
completed.
DISCUSSION:
The City and Developer previously entered into City Secretary Contract No. 33886, a CFA for construction
of a portion of North Tarrant Parkway and associated public improvements. The estimated cost of the
Project is $4,069,958.44. Developer's share of the cost of the Project is $1,356,652.82 and the City's share
is $2,713,305.62. However, Developer will fund the entire cost of the Project and will be reimbursed for the
City's share of the cost of the Project solely from tax increment that is generated by property owned by
Developer immediately to the north of the Project site, as provided by a Tax Increment Financing
Development Agreement (City Secretary Contract No. 33343) between Developer, the City and the Board
of Directors of Tax Increment Reinvestment Zone Number Seven, City of Fort Worth, Texas (North Tarrant
Parkway TIF). In other words, no City general funds will be used for this Project; however, future North
Tarrant Parkway TIF revenues are anticipated to materialize to reimburse Developer for the City's share of
the Project, and Developer's ability to obtain full reimbursement for the City's share of the Project is
dependent on the success of Developer's improvement of its own property.
The CFA requires Developer to provide the City with financial security in order to ensure that the Project will
be completed once it is undertaken. One form of financial security allowed by the CFA Policy approved by
the City Council is a cash deposit of 125 percent of the Project cost into an escrow account established
pursuant to an Escrow Pledge Agreement between the City and Developer. In accordance with an
amendment to the CFA Policy approved by the City Council on November 1, 2005 (M&C G-14998), the
CFA Policy prohibits a developer from making withdrawals from the escrow account in order to pay its
contractors as portions of a project are completed. Rather, the entire deposit must stay in the account until
the project is completed, requiring the Developer to, in essence, "double fund" the project. Prior to this
amendment, each time a developer constructing a street wanted to make a withdrawal from the escrow
account on account of partial project completion, City inspectors were required to inspect the portion of the
street project that had been completed, thus necessitating multiple inspection visits to a single project. In
the wake of recurring premature street failures that were brought to the City Council's attention, it was
determined that the elimination of the periodic withdrawal process would afford City inspectors more time to
devote to individual street projects to ensure that streets were constructed to the City's specifications.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 1/24/2007
Page 2 of 2
Developer has requested that the City Council make an exception to the CFA Policy for this Project to allow
periodic withdrawals from the escrow account and that the CFA be amended to permit this
arrangement. Because the area in question is in a TIF and is an area that the City Council has previously
determined will not develop in the foreseeable future without public assistance (Ordinance No. 15774), City
staff recommends that the City Council consent to this request, with the specific understanding that this
arrangement will in no way constitute an amendment to the CFA Policy or be interpreted as establishing
any kind of precedent.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office b Marc Ott (8476)
Originating Department Head: Robert Goode (7804)
Mark Rauscher (2446)
Additional Information Contact: Peter Vaky (7601)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 1/24/2007