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HomeMy WebLinkAboutContract 41925 (2)CITY SECRETARY CONTRACT NO. � IqM- CONTRACT OF SALE AND PURCHASE 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 City Manager or Assistant City Manager ("Purchaser") and Belinda Atherton, ("Seller") as of the date on which this Contract is executed by the last to sign of Seller and Purchaser ("Effective Date"). RECITALS 1. Seller is the owner of a tract of land out of the Scott, M William Survey, Abstract 1957 Tracts 1 A & 1 A6 & Abstract 1776 Tract 1, Tarrant County, Texas, commonly known as 589 Harmon Road, Fort Worth, Texas, together with any easements, rights -of -way,' licenses, interests, and rights appurtenant thereto (collectively, the "Property"). 2. Purchaser is a municipal corporation that desires to acquire the Property for public use. 3. Seller desires to sell the Property for fair market value for public use, which will benefit the citizens of the City of Fort Worth in general. AGREEMENT In consideration of the mutual covenants in this Contract, Seller and Purchaser agree as follows: Section 1. 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 all liens, claims, easements, rights -of -way, reservations, restrictions, encroachments, tenancies, and any other encumbrances (collectively, the "Encumbrances") except the Encumbrances appearing in the Title Commitment and the survey (as defined below) that are not cured and that are subsequently waived pursuant to Section 3 ("Permitted Encumbrances"). (c) Seller shall retain the rights to an interest in anT' mineral rights. The Deed (defined below) will contain a surface waiver aace table to Purchaser in its sole discretion. FICIAL RECORD CITY SECRETARY WORTrily'` Section 2. Independent Contract Consideration, Earnest Monet/ and Purchase Price. 1 (a) Contemporaneously with the execution of this Contract, Purchaser delivers to Seller a check in the amount of Five Hundred Dollars and 00/100 Dollars ($500.00) ("Independent Contract Consideration") as independent consideration for Seller's execution, delivery and performance 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 non-refundable, and shall be retained by Seller notwithstanding any other provision of this Contract; however, upon Closing (as hereinafter defined), the Independent Contract Consideration shall be applied as a credit toward the Purchase Price (as hereinafter defined). Theprice("Purchase Price")for the P���Na able Pur�ser to (b) purchase Property, by Seller at closing (as defined below), is FIVE HUNDRED TW£NT-PIPTY THOUSAND and 00/100 DOLLARS ($525,000.00). Seller has determined that the Purchase Price reflects the current fair market value of the Property. (c) Within 10 days of the Effective Date, Purchaser shall deliver to Lavonne S. Keith, Alamo Title Company, 2900 South Hulen, Ste. 30, Fort Worth, TX, 76109, Direct (817) 921- 1215 ("Title Company") a check or wire in the amount of One Thousand Dollars and 00/100 Dollars ($1,000.00) ("Earnest Money"). At Closing, the Earnest Money shall be applied as a credit toward the Purchase Price. Section 3. Title Commitment and Survey. (a) Within thirty (30) days after the Effective Date, Purchaser shall obtain at Seller's sole cost and expense (i) a Commitment for Title Insurance ("Title Commitment") from the 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) Within 10 days of the Effective Date, Seller will provide Purchaser with all surveys of the Property in Seller's possession. If Seller does not have a survey of the property satisfactory to Purchaser, in Purchaser's sole discretion, then Purchaser will have a new survey completed on or before Closing at Purchaser's sole cost. The description of the Property included in the survey chosen by Purchaser (the "Survey") will be used in all of the documents set forth in this Contract that require a legal description of the Property. (c) If the Title Commitment or Survey discloses any Encumbrances or other matters, which 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, Survey 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 and Survey to be amended to give effect to matters that are cured, 2 and give Purchaser written notice thereof within the fifteen (15) day period following receipt of the notice of Objections 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 Period but prior to the expiration of the option period (as defined below in Section 6) and, upon such termination, 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 Permitted 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 Period for an amount of time Purchaser deems necessary for Seller to cure the same. Section 4. Review Reports. Within five (5) days after the Effective Date, Seller shall deliver to Purchaser for Purchaser's review any and all environmental or engineering reports and studies in Seller's possession concerning the Property ("Reports"). Section 5. 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 analysis, and other tests, studies and surveys, including without limitation, environmental and engineering tests, borings, analysis, and studies ("Tests"). Any Tests shall be conducted at Purchaser's sole risk and expense, and Purchaser agrees to y-.n« defend Seller and th 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 (as defined below). Section 6. Option Period. (a) Notwithstanding anything to the contrary contained in this Contract, until one hundred and twenty (120) days after the Effective Date ("Option Period"), 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 5 above). (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, neither party shall have any further rights or obligations under this Contract. (c) If Purchaser gives notice of Contract termination to Seller under this Section, any Earnest Money shall be returned to Purchaser. 3 (d) The provisions of this Section 6 control all other provisions of this Contract. (e) The parties agree that the Option Period will not be extended upon expiration without a written amendment signed by both parties. Section 7. Closing Contingencies (a) The closing ("Closing") of the sale of the Property by Seller to Purchaser shall occur through the office of the Title Company in no more than (15) days after the satisfaction of the following contingencies to Closing ("Closing Contingencies"), but not later than August 31, 2011. The Closing Contingencies are as follows: (1) Any easements conveyed to the City will be at no cost to the City; and (2) The transaction must be approved by the Fort Worth City Council at a City council meeting. (b) Purchaser agrees to pursue the approvals and agreements described in the Closing Contingencies above with reasonable diligence. Seller agrees to cooperate fully with Purchaser in connection with Purchaser's pursuit of the above approvals. (c) If any Closing Contingencies are not satisfied to Purchaser's satisfaction so that Purchaser is prepared to close on or before August 31, 2011, then Purchaser must terminate this Contract, and upon the termination, Seller shall retain the Earnest Money and any interest earned and neither party will have any further rights or obligations hereunder; however, the Closing may be extended if the Closing Contingencies are not satisfied if agreed to in writing by the parties. Section 8. Closing Subject to Section (d) below, Closing shall occur no later than August 31, 2011. (a) 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: 4ceirx\ (i) A Warranty Deed ("Deed"), fully executed and acknowledged by Seller, conveying to Purchaser good and indefeasible fee simple title to the Property subject only to the Permitted Encumbrances, 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. 4 (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 a certified or cashier's check or such other means of funding acceptable to Seller, in an amount equal to the Purchase Price, adjusted for closing costs and prorations (3) Title Company shall issue to Purchaser, at Purchaser s sole cost and expense an Owner Policy of Title Insurance ("Owner Policy") issued by Title Company in the amount of the Purchase Price insuring 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) Seller and Purchaser shall each pay their respective attorneys' fees; (5) Seller shall pay all recording fees and any other closing costs as set forth by the Title Company. (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) If Purchaser is not prepared to close on or before August 31, 2011, the Closing may be extended if agreed to in writing by the parties. Section 9. Agents. Seller has engaged C21 Alliance Properties to serve as its agent or broker, and Seller shall be solely responsible for the payment of any fees, expenses, or other costs owed to such party. 5 Section 10. Closing Documents. No later than two (2) days prior to the Closing, Seller shall deliver to Purchaser a copy of the General Warranty Deed, which is subject to Purchaser's reasonable right of approval. 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, or (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. (c) (b) The address of Purchaser under this Contract is: City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Attention: Robin Bentley Real Property Services Division Telephone: 817-392-7315 The address of Seller under this Contract is: ,j� 5 �s old �i -��- /,t)nhtin . /7 7 Telephone: With a copy to: Leann D. Guzman City Attorney's Office City of Fort Worth 1000 Throckmorton Fort Worth, Texas 76102 Telephone: (817) 392-7600 (d) From time to time either party may designate another address under this Contract by giving the other party advance written notice of the change. 6 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. (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 .and neither party hereto shall have any further rights or obligations hereunder. 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. Neither party may assign its interest under this Contract without the prior written consent of the other party. Section 15. Taking 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 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 16. Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Texas. Section 17. 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. Section 18. Venue. Venue of any action brought under this Contract shall be in Tarrant County, Texas if venue is legally proper in that County. Section 19. Severabilitv. 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 7 other provision, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein Section 20. 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, then the Closing or the day for such performance, as the case may be, shall be the next following regular business day Section 21. Counterparts. This Contract may be executed in multiple counterparts, each of which will be deemed an original but which together will constitute one instrument [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 8 Thisas of the Effective Date. Contract is EXECUTED SELLER: BELINDA AT ERTON Name: Date: OLALT U • PURCHASER: WORTH, CITY OF FORTTEXAS By: Su an, is Assistant City Manager r �a ` ` ix Citykary "'Marty Hendrix, Seere.,�� 1V� &C L- H S Date: (0( 1;, • vilottiszir, g o site la ipso 0 so ot 1 `r 0 0 Zio �dtzt 000000 tt 444 rEn5440. APPROVED AS TO LEGALITY AND FORM (AV, /(171/1, A ssistant City Attorne l • OFFICIAL RECORD CITY SECRETARY FT, WORTH, TX • itsother duties pursuant to the Company agrees to perform By its execution below, Title C p y provisions of this Contract. TITLE COMPANY: By: Name: Title: Lin`J �. Date: `) OFFICIAL RECORD CITY SECRETARY IFT. WORTH, TX City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/7/2011 — Ordinance Nos.19714-06-2011 & 19715-06-2011 DATE: Tuesday, June 07, 2011 LOG NAME: 17589 HARMON ,SUBJECT. REFERENCE NO.: **L-15193 Authorize the Acquisition of One Single —Family Residential Propeity Located at 589 Harmon Road, Tarrant County, Texas, in the Amount of $525 000.00 for the Fort Worth Alliance Airport Noise Compatibility Program and Adopt Appropriation Ordinances (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the use of revenue derived from mineral leases on City —owned airports in the amount of $535,000.00 for costs associated with acquiring 589 Harmon Road; 2. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the amount of $535,000.00 in the Airports Gas Lease Project Fund from available funds; 3. Authorize the transfer of funds from the Airports Gas Lease Project Fund to the Municipal Airports Fund in the amount of $535,000.00; 4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Municipal Airports Fund in the amount of $535,000.00, from available funds; 5. Authorize the acquisition of a single family residence located at 589 Harmon Road in Tarrant County, Texas, from Belinda Atherton for the Fort Worth Alliance Airport Noise Compatibility Program and find that the price offered in the amount of $525,000.00 is just compensation plus estimated closing costs of $10 000.00 for a total acquisition cost of $535,000.00; and 6. Authorize the acceptance and recording of appropriate instruments. DISCUSSION: This acquisition is required to comply with the Federal Aviation Regulations (FAR) Part 150 Noise Study for Alliance Airport. The City Council approved a Noise Compatibility Program on March 2, 2010 (M&C G-16863) which was subsequently accepted by the Federal Aviation Administration on December 6, 2010. This Noise Compatibility Program identified this property for acquisition. The acquisition amount is based on an independent appraisal. This property is located south of Alliance Airport and is a voluntary sale. The land will be cleared of the residential improvements and will then be marketed and sold while retaining the necessary aviation rights. This purchase is eligible to be made with Federal Aviation Administration Noise Grant funds; however due to time constraints the Aviation Department is utilizing mineral lease funds for the purchase and will seek reimbursement of expenses from the FAA once Noise Grant funds are awarded. A request was made by City Council on March 8 2011 (M&C G-17277) for these grant funds The project expenses are eligible even if the grant is awarded after the costs are incurred. This property is located in COUNCIL DISTRICT 2, Mapsco 7T. FISCAL INFORMATION: The Financial Management Services Director certifies that upon approval of the above recommendations and adoption of the attached appropriation ordinance funds will be available in the current operating budget, as appropriated of the Municipal Aiiports Fund FUND CENTERS: TO Fund/Account/Centers 2)P240 446200 551929990100 2)P240 538040 551929990100 3) PE40 476240 0551002 4)PE40 541100 0551002 4)PE40 476240 0551002 FROM Fund/Account/Centers $535.000.00 3)P240 538040 551929990100 $535.000.00 4) PE40 541100 0551002 $535.000.00 $535.000.00 $535.000.00 CERTIFICATIONS: Submitted for City Manager's Office by: : Originating Department Head: Additional Information Contact: ATTACHMENTS Susan Alanis (8180) Jesus Chapa (5804) Cynthia Garcia (8187) Robin Bentley (7315) 1. 17 589 HARMON Rec2.doc 2. 17 589 HARMON Rec4.doc 3. Available Funds Airports Gas Lease Project Fund 052411.pdf 4.P240-539120-551929990100.doc 5. PE40-5ZZZZZ-05510ZZ.doc $535.000.00 $535.000.00