HomeMy WebLinkAboutIR 9347INFORMAL REPORT TO CITY COUNCIL MEMBERS
No. 9347
To the Mayor and Members of the City Council January 25, 2011
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• SUBJECT: AMENDMENT TO ECONOMIC DEVELOPMENT PROGRAM
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fell AGREEMENT CONTRACT NO. 36633 WITH CARLYLE /CYPRESS WEST 7T", LP
TO ALLOW COLLATERAL ASSIGNMENT TO LENDERS
On February 15, 2008, the City Council entered into an Economic Development Program
Agreement with Carlyle /Cypress West 7th, LP (Developer) for the development of the mixed -use
West 7th project located in the cultural district of the City.
In December of 2010, Developer approached the City regarding its intentions to pursue a loan to
continue the construction of the mixed -use development. Developer is requesting that the
Economic Development Program Agreement be amended to permit the Developer to assign the
agreement as security to the lender providing financing toward the development without prior
approval of the City Council. Developer would have to provide the City with copies of all loan
agreements, deeds of trust, and other documents between the Developer and the financial
institution.
Frequently, as security for the loan, certain agreements between the Developer and the lender
governing the loan require the Developer to assign to the lender all the Developer's rights,
interest in and to the Economic Development Program Agreement until such time as the
Developer has fully satisfied all duties and obligations under the loan documents. Therefore, a
Consent to Assignment would also be executed by the City, Developer and the lender to outline
the transfer of specific rights and interest and to provide that if the lender foreclosed on its interest
under the Economic Development Program Agreement, the lender would be bound by the duties
and obligations of Developer under that Agreement.
Staff will forward an M &C on February 1St Council agenda
authorize the execution of an amendment to the Economic
City Secretary Contract No. 36633 to allow the Developer ti
security to lenders.
Tom Higgins
Interim City Manager
ISSUED BY THE CITY MANAGER
for City Council consideration to
Development Program Agreement
assign the agreement as partial
FORT WORTH, TEXAS