Loading...
HomeMy WebLinkAboutContract 43210CITYSECRETARY/i„ CONTRACT NO. msess:12_1__Vas-60 COMPLETION AGREEMENT This Completion Agreement ("Agreement) is made and entered into by and among the City of Fort Worth ("City"), and Texas Star Cove, L.P., a Texas Limited Partnership("Developer"), and Texas Capital Bank, N.A. ("Lender"), effective as of , 2012. The City, the Developer and the Lender are hereinafter collectively called the "Parties". WITNESSETH: WHEREAS, the Developer owns that certain tract of real property that contains approximately 17.7 acres that is located in the City, the legal description of which tract of real property is marked Exhibit "A" — Legal Description, attached hereto and incorporated herein for all purposes (which tract of real property is hereinafter called the "Property"); and WHEREAS, the Developer intends to develop the Property as an addition to the City through plat FP-O 11-043; and WHEREAS, the Developer and the City have entered into a Community Facilities Agreement relating to the development of Texstar Cove Addition and known as City Project No. 01822 (hereinafter called the "CFA"); and WHEREAS, the City has required certain assurances of the availability of funds to complete the streets, street signs and lights, and the water and sewer utilities for the development of the Property (herein collectively called the "Community Facilities"), and WHEREAS, in order to provide such assurances as have been required by the City, the Lender has agreed to advance certain funds to the City for Hard Costs (which term is hereinafter defined) subject to, and in accordance with, the terms, provisions and conditions of this Agreement; and WHEREAS, the Developer has granted to the Lender as additional security for the Loan (which term is hereinafter defined) a security interest in all plans and specifications for the development of the Property (hereinafter collectively called the "Plans"); and WHEREAS, the Parties desire to set forth the terms and conditions of such accommodations as are described above. 05-11-12 PO4:49 IN OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX NOW THEREFORE, for and in consideration of the benefits to be derived from the mutual observance by the parties of the terms and conditions hereof, and for and in consideration of Ten Dollars ($10.00) and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the Parties agree as follows: 1. Recitals. The foregoing recitals are true, correct and complete and constitute the basis for this Agreement and they are incorporated into this Agreement for all purposes. 2. The Completion Amount The City and the Developer agree that the Hard Costs required to complete the Community Facilities in the aggregate should not exceed the sum of Four Hundred Ninety -Five Thousand Nine Hundred Seventy -Four Dollars and Two Cents ($495,974.02), hereinafter called the "Completion Amount". Notwithstanding the foregoing, it is acknowledged that the actual costs of completion of the Community Facilities may vary as a result of change orders agreed to by the Parties, but such variances for the purposes of this Agreement shall not affect the Completion Amount as used herein. 3. Adjustments to the Completion Amount. The Lender may from time to time make advances to the Developer for the development of the Property under the development loan that has been made by the Lender to the Developer for the purpose of financing the costs of constructing the Community Facilities for the Property (the "Loan") subject to, and in accordance with, the terms, conditions and provisions of the Loan Documents (which term is hereinafter defined) evidencing and securing the Loan Some of those advances shall be for Hard Costs as specified in the "Approved Budget" relating to the Loan, a copy of which Approved Budget is marked Exhibit "B", attached hereto and incorporated herein for all purposes, with the Hard Costs (which term is hereinafter defined) line items highlighted. The term "Hard Costs" shall mean the actual costs of construction and installation of the Community Facilities. To the extent that advances under the Loan are for the payment of Hard Costs, the Completion Amount shall be COMPLETION AGREEMENT Page 2 of 12 deemed reduced, dollar for dollar. The Lender may withhold statutory retainage from any advances under the Loan or pursuant to this Agreement. All such retainage withheld, to the extent it is attributable to Hard Costs, shall also reduce the Completion Amount dollar for dollar. All retainage withheld by the Lender for Hard Costs that are advanced to the City pursuant to this Agreement shall be released to the City as provided in the Texas Property Code upon expiration of the statutory retainage period. 4. Completion by the Developer. The Developer agrees to complete the Community Facilities on or before the date for completion that is established in the Loan Documents plus thirty (30) days (hereinafter called the "Completion Date"), in accordance with the CFA, the Plans that are approved by the Lender and the City and all documents evidencing or securing the Loan (which documents are hereinafter collectively called the "Loan Documents"). For the purposes of this Agreement, the development of the Property shall be deemed complete upon acceptance by the City of the Community Facilities. The City shall promptly notify the Lender and the Developer upon such acceptance. 5. Completion by the City. In the event that either: (A) the development of the Property is not completed by the Completion Date for any reason whatsoever, or (B) the Developer is in default under the Loan, then the Lender, at its sole option, may request the City to complete development The City may, at its sole option and at the cost and expense of the Developer, within 10 days from receipt of Lender's request, notify Lender that it will undertake to complete the Community Facilities and the City shall then commence, pursue, and complete the Community Facilities in a reasonably timely diligent and workmanlike manner in accordance with the Plans, subject to the terms of this Agreement. The Lender and the Developer agree that the City may use the Plans as necessary to complete the Community Facilities. If the City does not timely elect to complete the construction of the Community Facilities, then the Lender may at its election terminate this COMPLETION AGREEMENT Page 3 of 12 Agreement, or at its option proceed to complete the Community Facilities, or foreclose on any of its collateral, or take any and all such action as may be provided under the Loan Documents. 6. Advance of Completion Costs to the City and Delivery of Hard Costs Collateral to the City. In the event the Lender has requested the City and the City has elected to complete the Community Facilities, Lender shall transfer to the City all remaining undisbursed Hard Costs specified in the Approved Budget within 10 days of the date that the City elected to complete and provided Lender with written notice of such election. The Developer hereby authorizes and instructs the Lender to make the transfer of any remaining undisbursed Hard Costs specified in the Approved Budget to the City within 10 days of notification that the City elects to complete the Community Facilities. In the event the cost to complete the Community Facilities exceeds the moneys transferred to the City, City shall notify Lender and Developer in writing of the need of additional funds. The additional funds required to complete the Community Facilities shall be delivered to the City within 10 business days following notification to Lender and Developer. Failure to deliver the additional funds shall relieve the City of the obligation to complete the Community Facilities, in which event City shall use the Hard Costs funds in its possession to pay the contractor(s) all funds due it/them. Any remaining undisbursed Hard Costs shall be returned to Lender within a reasonable time. 7. Completion by the Lender. The Lender may, at its discretion, but shall not be obligated to, undertake to complete the Community Facilities if there is any default under any Loan Documents in lieu of requesting the City to complete the Community Facilities. If the Lender elects to complete the Community Facilities, any Hard Costs it expends shall, dollar for dollar, reduce the Completion Amount. 8. Easements. In the event the City or the Lender undertakes the completion of the Community Facilities, the Developer (and to the extent COMPLETION AGREEMENT Page 4 of 12 necessary the Lender) grants to the City and the Lender open access to the Property and shall execute and deliver such temporary easements over and across the entirety of the Property for the purpose of access and use for the completion of the construction of the Community Facilities in accordance with this Agreement. To the extent requested by the City and the Lender written temporary construction easements in form acceptable to the City and the Lender shall be executed by the Developer and filed of record. Nothing in this paragraph shall reduce any rights of the Lender or obligations of the Developer under the Loan Documents. 9. Lender's Rights. Nothing in this Agreement shall affect any portion of the Lender's collateral for the Loan or limit or impair the Lender's right to foreclose the same or deal with the collateral as it elects in accordance with the Loan Documents. 10. Satisfaction of the City Requirements. The City agrees that the assurances and covenants contained in this Agreement satisfy all requirements of the City with respect to payment and performance bonds or other requirements for security in connection with the development of the Property and the completion of the Community Facilities that are contained in the CFA or in any other agreement relating thereto, and the City hereby accepts the assurances and covenants contained herein in lieu thereof. To the extent the CFA irreconcilably conflicts with this Agreement, the provisions of this Agreement shall control. 11. Termination. This Agreement shall terminate upon the earlier to occur of the following: (a) acceptance by the City of the Community Facilities; (b) mutual written agreement of all of the Parties; or (c) the reduction of the Completion Amount to zero. However, release of the plat shall be governed by paragraph 12 hereof and termination pursuant to (b) or (c) of this paragraph 11 shall not require the City to release the plat. 12. Final Plat. The Parties acknowledge and agree that the City shall hold the final plat of the Property until the Community Facilities are completed and accepted by the City and all Hard Costs contractors have been COMPLETION AGREEMENT Page 5 of 12 paid, less retainage. Upon acceptance by the City and receipt of evidence from the Developer showing that all Hard Costs contractors have been paid, including but not necessarily limited to lien waivers and bills paid affidavits, the City shall within a reasonable time file the final plat for the Property in the Plat Records of the county where the Property is located. The purpose of the City retaining the final plat of the Property as provided herein is to guarantee the Developer's obligations under the CFA are completed. 13. Construction Contracts. Developer agrees to include in each Construction contract that it enters into for the completion of the Community Facilities the following: a. A statement that the City is not holding any security to guarantee any payment for work performed on the Community Facilities• b. A statement that the Property is private property and that same may be subject to mechanic's and materialman's liens; c. A requirement that each contractor contracting with the Developer release the City from any claim that is related to the Property; and d. A requirement that each contractor contracting with the Developer include in each subcontract the statements contained in a., b., and c. above. 14. Miscellaneous. A. Non-AssiEnment of Agreement. This Agreement may not be assigned by any of the Parties without the prior written consent of all the other Parties. B. Notice. Any notice required or permitted to be delivered under this Agreement shall be deemed received on actual receipt by the appropriate party at the following addresses: (i) Notice to the City shall be addressed and delivered as follows: City of Fort Worth Planning and Development Department 1000 Throckmorton Street Fort Worth, Texas 76102 COMPLETION AGREEMENT Page 6 of 12 and/or Attention: CFA Division David Schroeder, Development Manager Email: David.Schroeder@fortwoithgov.org Confirmation Number: 817-392-2239 Attention: CFA Division Jana Knight, Administrative Assistant Email: Jana.Knight@fortworthgov.org Confirmation Number: 817-392-2025 With a copy thereof addressed and delivered as follows: Douglas W. Black Office of the City Attorney City of Foit Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Confirmation Number: 817-392-7607 (ii) Notice to the Developer shall be addressed and delivered as follows: Texas Star Cove, L P Attn• Robert J. Betancur 218 W. Wall St. Grapevine, TX 76051 (iii) Notice to the Lender shall be addressed and delivered as follows: Texas Capital Bank, N.A., Attn: Jerry Schillaci 4424 W. Sam Houston Pkwy, Ste. 460 Houston, TX 77041 Email: ferry.schillaci@texascapitalbank.com COMPLETION AGREEMENT Page 7 of 12 A party may change its address for notice upon prior written notice to the other parties pursuant to the terms hereof. C. Texas Law to Apply. This Agreement shall be construed under and in accordance with the laws of the State of Texas. D. Parties Bound This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and assigns E Legal Construction In case any one or more of the provisions contained in this Agreement shall for any reason is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. F. Prior Agreements Superseded. This Agreement constitutes the sole and only agreement of the Parties with respect to the subject matter hereof and supersedes any prior understandings or written or oral agreements among the Parties concerning the subject matter hereof; provided, however, that this Agreement shall not supersede, amend or modify any of the Loan Documents or any portion thereof. G. Amendment. This Agreement may only be amended by a written instrument executed by all of the Parties to his Agreement. H. Headings. The headings that are used in this Agreement are used for reference and convenience purposes only and do not constitute substantive matters to be considered in construing the terms and provisions of this Agreement. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK) COMPLETION AGREEMENT Page 8 of 12 Executed IN QUADRUPLET by the Parties hereto: , the "Guarantor" of the Development Loan, is executing this Completion Agreement for the sole purpose of acknowledging that advances that are made by the Lender pursuant to this Completion Agreement shall be deemed to be advances that are made under the Loan that shall be subject to and covered by the Loan Documents and the Guaranty Agreement that was executed by DEVELOPER Texas Star Cove, L.P. By: Star Cove LLC Its ge► = al partner By: Title: �s uc. rc row" App��oved by City Manager's Office Fernando Costa Assistant City Manager ATTEST ary J. City Secri�tary M&C NoDate: 1 • LENDER Texas Capital Bank, N.A. r�sati�.p�r- � . mil �s.�Name: �p.e__r e .� � �-- Tit 1 e : SSG'ce PrBSitlant By: —7K,, r arscOatietsitrilth AZ> CORI. am%s prt • 0p000po UO J Ihe pry o COMPLETION AGREEMENT Page 9 of 12 firma 0 o 4•12 °Poocmoo° � ��1111U'areX � �b Approved as to Form & Legality Douglas W. B ack Assistant City Attorney OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX LIST OF EXHIBITS TO THE COMPLETION AGREEMENT EXHIBIT A - LEGAL DESCRIPTION EXHIBIT B - APPROVED BUDGET COMPLETION AGREEMENT Page 10 of 12 EXHIBIT A LEGAL DESCRIPTION OF 17.676 ACRES OF LAND KNOW ALL MEN BY THESE PRESENTS THAT TEXAS STAR COVE, L.P. IS THE OWNER OF THE FOLLOWING DESCRIBED PROPERTY TO WIT: BEING A 17.676 ACRE TRACT OF LAND SITUATED IN THE G.W. COUCH SURVEY, ABSTRACT NO. 278, IN THE CITY OF FORT WORTH TARRANT COUNTY, TEXAS, AND BEING A PORTION OF A CALLED 17.70 ACRE TRACT OF LAND DESCRIBED IN A SPECIAL WARRANTY DEED TO TEXAS STAR COVE L.P., AS RECORDED IN COUNTY CLERK S FILE NO. D211156921, OFFICIAL PUBLIC RECORDS, TARRANT COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF LOT 1, BLOCK A OF THEDALLAS AUTO AUCTION PARKING ADDITION, AN ADDITION TO THE CITY OF FORT WORTH, AS RECORDED IN CABINET A, SLIDE 8181, PLAT RECORDS, TARRANT COUNTY, TEXAS AND THE NORTHEAST CORNER OF A TRACT OF LAND CONVEYED TO MIDWAY INDUSTRIAL TRUST, BY DEED RECORDED IN DOCUMENT NO D199008713 OFFICIAL PUBLIC RECORDS TARRANT COUNTY TEXAS, SAID POINT BEING ON THE SOUTH RIGHT-OF-WAY LINE OF TRINITY BOULEVARD (A VARIABLE WIDTH RIGHT-OF-WAY) THENCE, SOUTH 00 DEGREES 07 MINUTES 01 SECONDS EAST ALONG THE WEST LINE OF SAID LOT 1 BLOCK A AND THE COMMON EAST LINES OF SAID MIDWAY INDUSTRIAL TRUST TRACT, AND A TRACT OF LAND CONVEYED TO ROSS H. SMITH, AS RECORDED IN VOLUME 9759, PAGE 528, DEED RECORDS TARRANT COUNTY, TEXAS A DISTANCE OF 758.31 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED `JACOBS" SETFOR THE POINT OF BEGINNING AND THE NORTHEAST CORNER OF SAID 17.70ACRE TRACT, AND THE COMMON SOUTHEAST CORNER OF SAID ROSS H SMITH TRACT• THENCE, SOUTH 00 DEGREES 07 MINUTES 01 SECONDS EAST, ALONG THE EAST LINE OF SAID 17 70 ACRE TRACT AND THE COMMON WEST LINE OF SAID LOT 1, BLOCK A, PASSING AT A DISTANCE OF 394.13 FEET, THE SOUTHWEST CORNER OF SAID LOT 1, BLOCK A AND THE NORTHWEST CORNER OF A CALLED 13,191 SQUARE FOOT TRACT OF LAND CONVEYED AS "TRACT 2" TO THE CITY OF EULESS, AS RECORDED IN VOLUME 14051,PAGE 567 OFFICIAL PUBLIC RECORDS, TARRANT COUNTY TEXAS, CONTINUING ALONG THE EAST LINE OF SAID 17.70 ACRE TRACT AND THE COMMON WEST LINE OF SAID TRACT 2 IN ALL A TOTAL DISTANCE OF 419 13 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED "JACOBS" SET FOR THE SOUTHEAST CORNER OF SAID 17 70 ACRE TRACT AND THE SOUTHWEST CORNER OF SAID TRACT 2, SAID POINT ALSO BEING ON THE NORTH LINE OF A TRACT OF LAND CONVEYED TO THE CITY OF EULESS, AS RECORDED IN VOLUME 11966 PAGE 1137, OFFICIAL PUBLIC RECORDS, TARRANT COUNTY, TEXAS, FROM WHICH A 1/2 INCH IRON ROD FOUND BEARS SOUTH 27 DEGREES 21 MINUTES 05 SECONDS EAST, A DISTANCE OF 1 44 FEET; Page 1 of 3 EXHIBIT A THENCE, SOUTH 89 DEGREES 36 MINUTES 58 SECONDS WEST, ALONG THE SOUTH LINE OF SAID 17.70 ACRE TRACT AND THE COMMON NORTH LINE OF SAID CITY OF EULESS TRACT, A DISTANCE OF 933.62 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED "JACOBS' SET FOR THESOUTHWEST CORNER OF SAID 17.70 ACRE TRACT; THENCE, NORTH 40 DEGREES 41 MINUTES 46 SECONDS WEST, ALONG THE WEST LINE OF SAID 17 70 ACRE TRACT A DISTANCE OF 477 68 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED "JACOBS" SET; THENCE, DEPARTING THE WEST LINE OF SAID 17.70 ACRE TRACT NORTH 29DEGREES 55 MINUTES 55 SECONDS WEST, A DISTANCE OF 105.00 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED ` JACOBS" SET, SAID POINT ALSO BEING ON THE SOUTH RIGHT-OF-WAY LINE OF SAID TRINITY BOULEVARD AND THE NORTHERLY LINE OF SAID 17.70 ACRE TRACT THENCE, ALONG THE NORTH LINE OF SAID 17.70 ACRE TRACT AND THE COMMON SOUTH RIGHT-OF-WAY LINE OF SAID TRINITY BOULEVARD, THE FOLLOWING COURSES AND DISTANCES NORTH 60 DEGREES 36 MINUTES 58 SECONDS EAST, A DISTANCE OF 104.82 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED 'JACOBS" SET FOR CORNER; NORTH 71 DEGREES 07 MINUTES 50 SECONDS EAST, A DISTANCE OF66.73 FEET TO A 1/2 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED `PATE" FOUND FOR CORNER; NORTH 60 DEGREES 36 MINUTES 58 SECONDS EAST, A DISTANCE OF411.04 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED 'JACOBS" SET FOR CORNER; NORTH 60 DEGREES 38 MINUTES 58 SECONDS EAST, A DISTANCE OF48 28 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED 'JACOBS" SET FOR CORNER; NORTH 63 DEGREES 28 MINUTES 42 SECONDS EAST, A DISTANCE OF65.70 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED 'JACOBS" SET FOR CORNER; NORTH 60 DEGREES 36 MINUTES 58 SECONDS EAST, A DISTANCE OF190.18 FEET TO A 5/8 INCH IRON ROD WITH A YELLOW PLASTIC CAP STAMPED 'JACOBS" SET FOR THE NORTHEAST CORNER OF SAID 17.70ACRE TRACT THENCE, SOUTH 49 DEGREES 03 MINUTES 41 SECONDS EAST, ALONG THE NORTHEAST LINE OF SAID 17.7068 ACRE TRACT AND A COMMON SOUTHWEST LINE OF AFOREMENTIONED ROSS H. SMITH TRACT, A DISTANCE OF 684.91 FEET TO THE POINT OF BEGINNING, AND CONTAINING 17.676 ACRES OF LAND, MORE OR LESS. Page 2 of 3 EXHIBIT A REFERENCE BEARING IS THE EAST LINE OF THE TRACT OF LAND CONVEYED TO TEXAS STAR COVE L.P. AS RECORDED IN COUNTY CLERK'S FILE NO. D211156921, OFFICIAL PUBLIC RECORDS TARRANT COUNTY TEXAS PLAT RECORDS, TARRANT COUNTY, TEXAS. JACOBS 777 MAIN STREET FORT WORTH TEXAS 76102 Page 3 of 3 EXHIBIT B COST LIST Section I Water $222,645.85 Sewer $172,417.40 Sub -total $395,063.25 Section II Interior Streets Storm Drains Sub -total Section III Street Lights Sub -total Section IV N/A Street Signs $19 737.87 $81 172 90 $100,910.77 N/A $0 N/A TOTAL $495,974.02 COMPLETION AGREEMENT Page 12 of 12