HomeMy WebLinkAboutContract 41231UECRETARY
JJr��l .� {(j„ r fl-� 4
C��• C7 V A G L� M0
C NTRACT OF SALE AND PURCHASE
(Sale by City of Fort Worth)
THIS CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into
by and between the CITY OF FORT WORTH, TEXAS, a home rule Municipal Corporation of
the State of Texas, acting by and through its duly authorized Assistant City Manager ("Seller")
and Cornerstone Assistance Network Housing Development Corporation, a Texas Nonprofit
Corporation, acting by and through its duly authorized President ("Purchaser"), as of the date on
which this Contract is executed by the last to sign of Seller and Purchaser ("Effective Date").
RECITALS
1. Seller, pursuant to M&C C-24287, executed a conditional commitment with Purchaser, a
certified Community Housing Development Organization, to expend $290,000.00 in
HOME Investment Partnerships Program Grant Funds for the development of three
single family houses in the Polytechnic neighborhood (the "Project");
2. Seller is the owner of an approximately .151 acre tract of land described as Lot 11,
Block 6 of the Englewood Heights Addition, Fort Worth, Tarrant County, Texas, and an
approximately .151 acre tract of land described as Lot 13, Block 6 of the Englewood
Heights Addition, Fort Worth, Tarrant County, Texas, together with any easements,
rights -of -way, licenses, interests, benefits, privileges and rights appurtenant thereto
(collectively, the "Property"), as shown and more particularly described on the attached
Exhibit "A", incorporated herein for all purposes.
3. Seller will convey the Property through direct sale in accordance with Section 272.001(g)
of the Texas Local Government Code; and
4. Seller finds that the terms and conditions of the sale of the Property effectuates and
maintains a public purpose.
AGREEMENT
In consideration of the mutual covenants, representations, warranties and agreements
contained herein, and for other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, Seller and Purchaser agree as follows:
Section 10 Agreement of Sale and Purchase.
(a) Seller agrees to sell and convey the Property to Purchaser, and Purchaser agrees to
purchase and accept the Property from Seller, for the purchase price (as defined below), subject
to the terms and conditions set forth in this Contract.
(b) Seller shall convey the Property to Purchaser free and clear--of-ail- -liens, claims;
easements, rights -of -way, reservations, restrictions, encroachments, tena0ees and anyypthes
CITY firt4Rririlpy
"�' Page 1 0 4;
F . ' ° i ,�r•
41)(
encumbrances (collectively, the "Encumbrances') except the Encumbrances appearing in the
Title Commitment (as defined below in Section 3) and the survey (as defined below) that are not
cured and that are subsequently waived pursuant to Section 3 ("Permitted Encumbrances") and
any express reservations described herein.
(c) In Seller's conveyance of the Property to Purchaser, the following rights and
interests shall be reserved to Seller (or have previously been reserved by Seller's predecessor in
title), and such reservation is hereby approved for al purposes:
(i) all right, title, and interest in and to all oil, gas, and other minerals in and
under the Property, if any; provided, however, Seller waives and conveys
to Purchaser the right of ingress and egress to and from the surface of the
Property relating to the portion of the mineral estate owned by Seller.
(ii) all right and interest in and to all underground water under the Property;
provided, however, the right to pump, produce, capture, or recover said
water may be exercised only in such a manner so as not to interfere with
use of the Property.
Section 2. Independent Contract Consideration, Purchase Price, and Earnest Money.
(a) Contemporaneously with the execution of this Contract, Purchaser hereby delivers
to Seller the amount of One Hundred and 00/100 Dollars ($100.00) ("Independent Contract
Consideration') which amount the parties bargained for and agreed to as consideration for
Seller's execution and delivery of this Contract. This Independent Contract Consideration is in
addition to and independent of any other consideration or payment provided for in this Contract,
is nonrefundable, and shall be retained by Seller notwithstanding any other provision of this
Contract.
(b) The purchase price ("Purchase Price") for the Property, payable by Purchaser to
Seller in cash at closing (defined below), is Ten Thousand and 00/100 Dollars ($10,000.00).
Seller has determined that the Purchase Price reflects the current fair market value of the
Property.
(c)
Within five (5) days after the execution and delivery of this Contract by
Seller to Purchaser, Purchaser shall deliver to title company (as defined
below in) a check payable to the order of title company or other means of
funding reasonably satisfactory to Seller earnest money in the amount of
Five Hundred and 00/100 Dollars ($500.00) ("Earnest Money").
Purchaser s failure to deposit the Earnest Money as provided herein shall
entitle Seller to void this Contract. The Earnest Money shall secure
Purchaser's performance of its closing obligations stated in this Contract.
Title company shall hold the Earnest Money in escrow and deliver it in
accordance with the provisions of this Contract.
Section 3. Title Commitment and Survey.
Page 2 of 14
(a) Within thirty (30) days after the Effective Date, Purchaser may obtain at
Purchaser's sole cost and expense (i) a Commitment for Title Insurance and Title Policy ("Title
Commitment") from the Title Company of Purchaser's choice ("Title Company"), setting forth
the status of the title of the Property and showing all Encumbrances and other matters, if any,
relating to the Property and (ii) a legible copy of all documents referred to in the Title
Commitment, including but not limited to, plats, reservations, restrictions, and easements.
(b) Purchaser may, at its sole cost and expense obtain a survey ("Survey") of the
Property.
(c) If the Title Commitment discloses any Encumbrances or other matters that are not
acceptable to Purchaser in Purchaser's sole discretion, then Purchaser shall give Seller written
notice thereof within fifteen (15) days after receipt of the Title Commitment and all documents
referred to in the Title Commitment, specifying Purchaser's objections ("Objections' ), if any. If
Purchaser gives such notice to Seller, Seller shall use its best efforts to cure the Objections, but
shall be under no obligation to do so.
(d) If Purchaser gives notice of Objections and Seller does not cure the Objections,
cause the Title Commitment to be amended to give effect to matters that are cured, and give
Purchaser written notice thereof within the fifteen (15) day period following receipt of the notice
from Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this
Contract by giving written notice thereof to Seller at any time after the expiration of such Cure
P eriod but prior to the expiration of the option period (as defined below), and, upon such
termination, Purchaser shall be entitled to the return of the Earnest Money, and neither party
hereto shall have any further rights or obligations; or (ii) to waive the Objections and
consummate the purchase of the Property subject to the Objections which shall be deemed to be
P ermitted Encumbrances. Notwithstanding the foregoing sentence, if Seller has commenced
curing the Objections and is diligently prosecuting the same, as determined by Purchaser in
Purchaser's sole discretion, then Purchaser in Purchaser's sole discretion may extend the Cure
P eriod for an amount of time Purchaser deems necessary for Seller to cure the same.
Section 4. Review Reports. Seller shall deliver to Purchaser without recourse or
warranty any environmental or engineering reports and studies in Seller's possession concerning
the Property ("Reports") within five (5) days after the Effective Date.
Section 5. Representations, Warranties, "AS IS"
(a) EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, PURCHASER
ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT
MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY
REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS
OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER
EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF,
AS, TO CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE,
QUALITY OR CONDITION OF THE PROPERTY INCLUDING, WITHOUT
LIMITATION, THE WATER, SOIL AND GEOLOGY, (B) THE INCOME TO BE
DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY
Page 3 of 14
FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT
THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS
OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF
ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE
HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER
OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY,
INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY, STATE OF
REPAIR OR LACK OF REPAIR OF THE PROPERTY, OR (H) ANY OTHER MATTER
WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT SELLER HAS
NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS REGARDING COMPLIANCE WITH ANY ENVIRONMENTAL
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS,
ORDERS OF REQUIREMENTS, INCLUDING SOLID WASTE, AS DEFINED BY THE
U. S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R.,
PART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY, OF
ANY HAZARDOUS SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE
ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980,
AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER.
PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN
GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER IS
RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT
ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. AS A
MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, SELLER
AND PURCHASER AGREE THAT PURCHASER IS TAKING THE PROPERTY "AS
IS' WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS
NO WARRANTY BY SELLER THAT THE PROPERTY IS FIT FOR A PARTICULAR
PURPOSE. PURCHASER ACKNOWLEDGES THAT IT IS NOT RELYING UPON
ANY REPRESENTATIONS, STATEMENTS, ASSERTIONS OR NON -ASSERTIONS BY
THE SELLER WITH RESPECT TO THE PROPERTY CONDITION, BUT IS RELYING
SOLELY UPON. ITS EXAMINATION OF THE PROPERTY. PURCHASER TAKES
THE PROPERTY UNDER THE EXPRESS UNDERSTANDING THERE ARE NO
EXPRESS OR IMPLIED WARRANTIES (EXCEPT FOR LIMITED WARRANTIES OF
TITLE SET FORTH IN THE CLOSING DOCUMENTS). UPON CONVEYANCE, AS
BETWEEN SELLER AND PURCHASER, THE RISK OF LIABILITY OR EXPENSE
FOR ENVIRONMENTAL PROBLEMS AFFECTING THE PROPERTY, EVEN IF
ARISING FROM EVENTS BEFORE CLOSING, WILL BE THE SOLE
RESPONSIBILITY OF PURCHASER, REGARDLESS OF WHETHER THE
ENVIRONMENTAL PROBLEMS WERE KNOWN OR UNKNOWN AT CLOSING.
ONCE CLOSING HAS OCCURRED, PURCHASER INDEMNIFIES, HOLDS
HARMLESS AND RELEASES SELLER FROM LIABILITY FOR ENVIRONMENTAL
PROBLEMS AFFECTING THE PROPERTY, INCLUDING, BUT NOT LIMITED TO,
UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION
AND LIABILITY ACT ("CERCLA"), THE RESOURCE CONSERVATION AND
RECOVERY ACT (RCRA), THE TEXAS SOLID WASTE DISPOSAL ACT OR THE
TEXAS WATER CODE. PURCHASER INDEMNIFIES, HOLDS HARMLESS AND
RELEASES SELLER FROM ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS
Page 4 of 14
OR CONDITIONS AFFECTING THE PROPERTY ARISING AS THE RESULT OF
SELLER'S OWN NEGLIGENCE OR THE NEGLIGENCE OF SELLER'S
REPRESENTATIVES, BUT NOT ANY WILLFUL ACTS OR OMISSIONS OR GROSS
NEGLIGENCE OF SELLER OR SELLER'S REPRESENTATIVES. PURCHASER
INDEMNIFIES, HOLDS HARMLESS AND RELEASES SELLER FROM ANY
LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING
THE PROPERTY ARISING AS A RESULT OF THEORIES OF PRODUCTS
LIABILITY AND STRICT LIABILITY, OR UNDER NEW LAWS OR CHANGES TO
EXISTING LAWS ENACTED AFTER CONVEYANCE DATE THAT WOULD
OTHERWISE IMPOSE ON SELLER IN THIS TYPE OF TRANSACTION NEW
LIABILITIES FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING
THE PROPERTY. PROVISIONS OF THIS SECTION SHALL SURVIVE THE
CLOSING. IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE HAS
BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE
PROPERTY IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO
THE FOREGOING. PURCHASER ACKNOWLEDGES AND ACCEPTS ALL THE
TERMS AND PROVISIONS BY HIS ACCEPTANCE HEREOF.
b. The provisions of Section 5(a) shall be incorporated into the Deed.
c. The provisions of Section 5(a) shall survive the closing (as defined below).
Section 6. Option Period.
(a) Notwithstanding anything to the contrary contained in this Contract, until forty-
five (45) days after the Effective Date (` Option Penod"), the following is a condition precedent
to Purchaser's obligations under this Contract:
Purchaser being satisfied in Purchaser's sole and absolute discretion that the
Property is suitable for Purchaser's intended uses, including, without limitation,
Purchaser being satisfied with the results of the Tests (defined in Section 7
below).
(b) If Purchaser is not satisfied in Purchaser's sole and absolute discretion as to the
condition precedent described in Section 6(a) above Purchaser may give written notice thereof
to Seller on or before the end of the Option Period, whereupon this Contract shall terminate.
Upon such termination, Purchaser shall be entitled to the return of the Earnest Money and neither
party shall have any further rights or obligations under this Contract.
(c) If Purchaser does not terminate this Contract prior to the expiration of the Option
Period, then the Earnest Money shall become non-refundable to Purchaser except in the event of
Seller s default in the performance of Seller's obligations under this Contract, and Title
Company shall release the Earnest Money to Seller at any time thereafter upon request by Seller.
(d) The provisions of this Section 6 control all other provisions of this Contract.
Page 5 of 14
(e) The parties agree that the Option Period will not be extended upon expiration
without a written amendment signed by both parties.
Section 7. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right to
go on to the Property, including the Improvements, to make inspections, surveys, test borings,
soil analyses, and other tests, studies and surveys, including without limitation, environmental
and engineering tests, borings, analyses, site assessments, and studies ("Tests). Any Tests shall
be conducted at Purchaser's sole risk and expense, and Purchaser agrees to indemnify and defend
Seller and the Property from any liens and claims resulting from such Tests. The Property will
be restored by Purchaser to its original condition at Purchaser's sole expense following any site
work. In the event this transaction does not close for any reason whatsoever, the Purchaser shall
release to Seller any and all independent studies or results of Tests obtained during the Option
Period.
Section 8. Closing.
(a) The closing ("Closing") of the sale of the Property by Seller to Purchaser shall
occur through the office of the Title Company by April 29th, 2011. At the Closing, all of the
following shall occur, all of which are deemed concurrent conditions:
(1) Seller, at Seller's sole cost and expense, shall deliver or cause to be
delivered to Purchaser the following:
(i) A Special Warranty Deed ("Deed"), fully executed and
acknowledged by Seller, conveying to Purchaser good and indefeasible fee
simple title to the Property subject to existing easements rights -of -way,
and prescriptive rights, whether of record or not, with the precise form of
the Deed to be determined pursuant to Section 10 below;
(ii) Any other instrument or document necessary for Title Company to
issue the Owner Policy in accordance with Section 8(a)(3) below.
(2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to
be delivered to Seller through the Title Company federally wired funds or such
other means of funding acceptable to Seller, in an amount equal to the Purchase
Price, adjusted for closing costs and prorations.
Page 6 of 14
(3) The Title Company shall issue to Purchaser, at Purchaser's sole cost and
expense, a Texas Owner Policy of Title Insurance (' Owner Policy") issued by
Title Company in the amount of the Purchase Price insunng that, after the
completion of the Closing, Purchaser is the owner of indefeasible fee simple title
to the Property, subject only to the Permitted Encumbrances, and the standard
printed exceptions included in a Texas Standard Form Owner Policy of Title
Insurance; provided, however, the printed form survey exception shall be limited
to "shortages in area,' the printed form exception for restrictive covenants shall be
deleted except for those restrictive covenants that are Permitted Encumbrances,
there shall be no exception for rights of parties in possession, and the standard
exception for taxes shall read: "Standby Fees and Taxes for [the year of Closing]
and subsequent years, and subsequent assessments for prior years due to change
in land usage or ownership".
(4) The Earnest Money (including any Additional Earnest Money) shall be
applied to the Purchase Price at Closing.
(5)
Seller and Purchaser shall each pay their respective attorneys' fees.
(6) Except as otherwise provided herein, all costs and expenses in connection
with Closing shall be paid or borne by Purchaser including without limitation,
Title Company attorney and escrow or settlement fees, costs of tax certificates,
survey costs, and title insurance policy costs. .
(b) Ad valorem and similar taxes and assessments, if any, relating to the Property
shall be prorated between Seller and Purchaser as of the Closing, based on estimates of the
amount of taxes that will be due and payable on the Property during the calendar year in which
the Closing occurs. As soon as the amount of taxes and assessments on the Property for that year
is known, Seller and Purchaser shall readjust the amount of taxes to be paid by each party with
the result that Seller shall pay for any taxes and assessments applicable to the Property up to and
including the date of Closing, and Purchaser shall pay for those taxes and assessments applicable
to the Property after the Closing. The provisions of this Section 8(b) survive the Closing.
(c) Upon completion of the Closing, Seller shall deliver possession of the Property to
Purchaser free and clear of all tenancies of every kind.
(d) In no event shall the Closing occur before Seller and Purchaser have executed a
CHDO HOME contract and a CHDO operating contract.
Section 9. Agents. Seller and Purchaser each represent and warrant to the other that it
has not engaged the services of any agent, broker, or other similar party in connection with this
transaction.
Section 10 Closing Documents No later than fifteen (15) days prior to the Closing,
Seller shall deliver to Purchaser a copy of the Special Warranty Deed, which is subject to
Purchaser's reasonable right of approval.
Page 7 of 14
Section 11. Notices.
(a) Any notice under this Contract shall be in writing and shall be deemed to have
been served if (i) delivered in person to the address set forth below for the party to whom the
notice is given, (ii) delivered in person at the Closing (if that party is present at the Closing), (iii)
placed in the United States mail, return receipt requested, addressed to such party at the address
specified below, (iv) deposited into the custody of Federal Express Corporation to be sent by
FedEx Overnight Delivery or other reputable overnight carrier for next day delivery, addressed
to the party at the address specified below, or (v) telecopied to the party at the telecopy number
listed below, provided that the transmission is confirmed by telephone on the date of the
transmission.
(b) The address of Seller under this Contract is:
City of Fort Worth
1000 Throckmorton Street
Fort Worth, Texas 76102
With a copy to:
Leann Guzman
City Attorney's Office
Attention. Housing and Community Development Division City of Fort Worth
Ryan Haden 1000 Throckmorton
Telephone: 817-392-7329 Fort Worth, Texas 76102
Fax (817) 392-7328 (817) 392-8973
Fax (817) 392-8359
(c) The address of Purchaser under this Contract is:
Cornerstone Assistance Network Housing Development Corporation
3500 Noble Avenue
Fort Worth, Texas 76111
Telephone: (817) 632-6000 ext. 114
Fax (817) 632-6001
(d) From time to time either party may designate another address or telecopy number
under this Contract by giving the other party advance written notice of the change.
Section 12. Termination, Default, and Remedies.
(a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant
to this Contract at the Closing for any reason other than termination of this Contract by Purchaser
pursuant to a right so to terminate expressly set forth in this Contract or Seller's failure to
perform Seller's obligations under this Contract, then Seller, as Seller s sole and exclusive
remedy, shall have the right to terminate this Contract by giving written notice thereof to
Purchaser prior to or at the Closing, whereupon neither party hereto shall have any further rights
or obligations hereunder, and Title Company shall deliver the Earnest Money to Seller as
liquidated damages, free of any claims by Purchaser or any other person with respect thereto. It
is agreed that the Earnest Money to which the Seller is entitled hereunder is a reasonable forecast
of Just compensation for the harm that would be caused by Purchaser's breach and that the harm
that would be caused by such breach is one that is incapable or very difficult of accurate
Page 8 of 14
estimation, and that the payment of these sums upon such breach shall constitute full satisfaction
of Purchaser's obligations hereunder.
(b) If Seller fails or refuses to consummate the sale of the Property pursuant to this
Contract at Closing or fails to perform any of Seller's other obligations hereunder either prior to
or at the Closing for any reason other than the termination of this Contract by Seller pursuant to a
right so to terminate expressly set forth in this Contract or Purchaser's failure to perform
Purchaser's obligations under this Contract, then Purchaser shall have the right to terminate this
Contract by giving written notice thereof to Seller prior to or at the Closing whereupon the
Earnest Money shall be returned to Purchaser and neither party hereto shall have any further
rights or obligations hereunder.
(c) If either Seller or Purchaser becomes entitled to the Earnest Money upon
cancellation of this Contract in accordance with its terms, Purchaser and Seller covenant and
agree to deliver a letter of instruction to the Title Company directing disbursement of the Earnest
Money to the party entitled thereto.
Section 13. Entire Contract. This Contract (including the attached exhibits) contains the
entire contract between Seller and Purchaser, and no oral statements or prior written matter not
specifically incorporated herein is of any force and effect. No modifications are binding on
either party unless set forth in a document executed by that party.
Section 14. Assigns. This Contract inures to the benefit of and is binding on the parties
and their respective legal representatives, successors, and assigns. Any attempted assignment
shall be void.
Section 15. Time for Execution. If Purchaser has not executed and returned a fully
executed original of this Contract to Purchaser by 5:00 p.m., Fort Worth, Texas time on February
1st, 20l 1 the offer of this Contract shall be automatically revoked and terminated.
Section 16. Time of the Essence. It is expressly agreed that time is of the essence
with respect to this Contract.
Section 17. Takmg Prior to Closing. If, prior to Closing, the Property or any portion
thereof becomes subject to a taking by virtue of eminent domain, Purchaser may, in Purchaser's
sole discretion, either (i) terminate this Contract whereupon the Earnest Money shall be returned
to Purchaser, and neither party shall have any further rights or obligations hereunder, or (ii)
proceed with the Closing of the transaction with an adjustment in the Purchase Price to reflect
the net square footage of the Property after the taking.
Section 18. Governing Law. This Contract shall be governed by and construed in
accordance with the laws of the State of Texas.
Section 19. Performance of Contract. The obligations under the terms of the
Contract are performable in Tarrant County, Texas, and any and all payments under the terms of
the Contract are to be made in Tarrant County, Texas.
Page 9 of 14
Section 20. Venue. Venue of any action brought under this Contract shall be in Tarrant
County, Texas if venue is legally proper in that county.
Section 21. Severability. If any provision of this Contract is held to be invalid,
illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not
affect any other provision, and this Contract will be construed as if such invalid, illegal, or
unenforceable provision had never been contained herein.
Section 22. Business Days. If the Closing or the day for performance of any act
required under this Contract falls on a Saturday, Sunday, or legal holiday for the City of Fort
Worth or federal holiday, then the Closing or the day for such performance, as the case may be,
shall be the next following regular business day.
Section 23. Multiple Counterparts. This Contract may be executed in any number of
identical counterparts. If so executed, each of such counterparts is to be deemed an original for
all purposes, and all such counterparts shall, collectively constitute one agreement, but, in
making proof of this Contract, it shall not be necessary to produce or account for more than one
such counterpart. .
[SIGNATURES APPEAR ON THE FOLLOWING PAGE]
Page 10 of 14
This Contract is executed as of the Effective Date.
SELLER: CITY OF FORT WORTH, TEXAS
By
Date:
A�sistant City Manager
— io - o
Attest
Marty Hendrix 0wig 0
og
City Secretary d
M&C
Date: te 1 daft 1 1 O
DOE#
Approved as to Legality and Form
'AssiW 1/(47040A._
stant City Attorey
PURCHASER:
Cornerstone Assistance Network Housing Development
Corporation, a Texas Nonprofit Corporation
B
Name: PEI e /I_ Pos4
Title: D1rc4r
Date: ► l I3D I'o
OFFICIAL P7CORD
»STY SECRETARY
Page li1 'of 1
By its execution below, Title Company acknowledges receipt of the Earnest Money described in
this Contract and agrees to hold and deliver the same and perform its other duties pursuant to the
provisions of this Contract.
TITLE COMPANY:
By: Edward Lange
Name: Republic Title
Address: 3737 Hulen Street, Suite 100
Fort Worth, TX 76107
Phone: (817) 377-9090
Fax: (817) 377-9093
Date:
Page 12 of 14
EXHIBIT "A"
Description of Properties
SURVEY OF PROPERTY IS NEEDED
Lot 11, Block 6, ENGLEWOOD HEIGHTS ADDITION, and Addition to the City of Fort
Worth Tarrant County Texas, according to the plat recorded in Volume 310, Page 67, Plat
Records, Tarrant County, Texas.
And also,
Lot 13, Block 6, ENGLEWOOD HEIGHTS ADDITION, and Addition to the City of Fort
Worth, Tarrant County, Texas, according to the plat recorded in Volume 310, Page 67, Plat
Records, Tarrant County, Texas
M&C Review Page 1 of 3
CITY COUNCIL AGENDA
DATE:
CODE:
SUBJECT:
COUNCIL ACTION: Approved on 6/22/2010
6/22/2010 REFERENCE
NO.:
C TYPE:
C-24287
NON -
CONSENT
Official site of the City of Fort Worth, Texas
FORT WORT
LOG NAME: 17CORNERSTONE
PUBLIC
HEARING:
NO
Authorize a Change in Use and the Expenditure of $290,000.00 of HOME Investment
Partnerships Program Grant Funds to Cornerstone Assistance Network Housing
Development Corporation for the Development of Three Single Family Houses in the
Polytechnic Neighborhood, Authorize the Execution of a Conditional Commitment and
Contract and Authorize a Substantial Amendment to the 2008-2009 and 2009-2010 Action
Plans (COUNCIL DISTRICT 5)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize a Substantial Amendment to the City's 2008-2009 and 2009-2010 Action Plans;
2. Authorize the City Manager, or his designee, to substitute funding years in order to meet
commitment, disbursement and expenditure deadlines for grant funds from the United States
Department of Housing and Urban Development;
3. Authorize a change in use and expenditure of $290,000.00 in prior year's HOME Investment
Partnerships Program Grant funds to Cornerstone Assistance Network Housing Development
Corporation for the development of three single family houses in the Polytechnic neighborhood;
4. Authorize the City Manager, or his designee, to execute a conditional commitment with
Cornerstone Assistance Network Housing Development Corporation that conditions funding, among
other things, on satisfactory completion of HOME requirements;
5. Authorize the City Manager, or his designee, to execute a Contract and any necessary related
documents with the Cornerstone Assistance Network Housing Development Corporation for the
project for a one year term beginning on the date of execution of the Contract;
6. Authorize the City Manager, or his designee, to extend or renew the conditional commitment or the
Contract for up to six months if Cornerstone Assistance Network Housing Development Corporation
requests an extension and such extension is necessary for completion of the project; and
7. Authorize the City Manager, or his designee, to amend the conditional commitment or the Contract
if necessary to achieve project goals provided that the amendment is within the scope of the project
and in compliance with City policies and applicable laws and regulations governing the use of the
federal grant funds.
DISCUSSION:
On October 6, 2009 the City issued a Request for Proposals (RFP) for Community Housing
Development Organizations (CHDO) to award and expend up to $1,600,000 of HOME Investment
Partnerships Program Grant funds by May 1, 2012. On November 5 2009 the Cornerstone
Assistance Network Housing Development Corporation (Cornerstone) submitted a response
http://apps.cfwnet org/council_packet/mc_review.asp?ID=13575&councildate=6/22/2010 8/13/2010
M&C Review Page 2 of 3
requesting $290,000.00 of the available HOME funds to acquire three sites in the Polytechnic
neighborhood on which it proposed to construct single family houses. The request also included
funds for related CHDO operating expenses.
City staff reviewed all RFP submissions and recommended the award to Cornerstone of
$290,000.000 in HOME funds to the Community Development Council (CDC) at its meeting held on
June 9 2010 The CDC agreed with staffs funding recommendation for the project. Up to $50,000.00
of the HOME funds will be used for eligible CHDO operating expenses and $240,000 00 for eligible
construction and other development expenses
Cornerstone plans to develop three single family houses to be located in the 3200 block of Strong
Avenue that will be at a minimum, 1,200 square feet with three -bedrooms, two -baths and a garage.
The houses will be sold to individuals or families that earn 80 percent or Tess of Area Median Income
as determined by the United States Department of Housing and Urban Development (HUD). Buyers
must meet all HOME Program requirements including applying for and receiving at least $1,000.00 in
down payment and/or closing cost assistance from the City's Homebuyer Assistance Program and
occupying the house as their primary residence for five years
Staff recommends the following contract terms:
i. Construction must begin within six months of contract execution;
ii. Cornerstone's performance under the contract and use of the HOME funds will be secured by a
recorded Deed of Trust;
Houses must be sold to a HOME eligible buyer; and
iv. Proceeds from sale of houses to be used to construct an additional house for HOME eligible
buyer.
This expenditure of HOME funds is conditioned upon the following:
i. Satisfactory completion of the environmental review per CFR Part 58;
ii. Authorization to use grant funds from HUD; and
iii. Receipt of funding for the 2010-2011 HUD grant funding year.
City staff recommends the change in use and expenditure of $290 000.00 in prior year's HOME funds
for the project in order to benefit low and very low income citizens by providing them with affordable
housing. A public comment period on the change in use of these HOME funds was held from May 6,
2010, to June 5, 2010. Any comments are maintained by the Housing and Economic Development
Department in accordance with federal regulations.
This project is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the Grants Fund.
TO Fund/Account/Centers
GR76 539120 017206351XXX $50.000.00
GR76 539120 005206271XXX $240.000.00
FROM Fund/Account/Centers
GR76 539120 017206351030 $50,000.00
GR76 539120 005206271030 $240.000.00
Submitted for City Manager's Office by: Thomas Higgins (6192)
Originating Department Head: Jay Chapa (5804)
Additional Information Contact: Ryan Haden (7329)
http://apps.cfwnet.org/council_packet/mc review.asp?ID=13575&councildate=6/22/2010 8/13/2010