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HomeMy WebLinkAboutContract 43968CRY SECNrI'AItY CONTRACT Esc;.ij'/I Lo% OPTION TO PURCHASE TAX FORECLOSED PROPERTY THIS OPTION TO PURCHASE ("Option") is between The City of Fort Worth, Texas, a home rule municipality, acting on its own behalf and as trustee on behalf of the State of Texas, Tarrant County, Tarrant County Water Control and Improvement District No. 1, Tarrant County Hospital District, Tarrant County Education District, Tarrant County Right of Way District and Birdville Independent School District, ("Seller"), acting by and through its duly authorized Assistant City Manager, Fernando Costa, and Carson Street Garden of Eden Neighborhood Association, Inc. ("Purchaser"). RECITALS A. Seller is the owner of a certain tract of real property, which is more particularly described as follows: 1.95 acres, more or less, out of the J.A. Akers Survey, Abstract 24 and the H.P. Tuggle Survey, Abstract 1513, save and except 0.146 acres contained in a street right of way, being more particularly described in Volume 9457, Page 1655, Deed Records of Tarrant County, Texas. Tarrant County Appraisal District Account Nos. 03721825 and 04208463 (the "Property"). B. Purchaser desires to purchase the Property. C. Seller has agreed to grant to Purchaser an option to purchase the Property. AGREEMENT In consideration of the mutual covenants and other consideration in this Option, Seller and Purchaser agree as follows: 1. Option Amount. In consideration of ONE HUNDRED AND NO/ 100 DOLLARS ($100.00) (the "Option Fee"), Seller grants to Purchaser the exclusive right and option to purchase the Property, SUBJECT, HOWEVER, to the terms and conditions hereinafter set forth. 2. Option Period. This Option shall expire on December 31, 2012. 3. Purchase Price. a. Direct Sale. The purchase price owed to Seller for the Property shall be $30,091.55 ("Purchase Price"). Additionally, Purchaser shall be responsible for any post -judgment taxes owed to Tarrant County. The post judgment tax amount due as of January 2013 is $22,424.58. The post judgment tax amount increases one percent each month, so the actual amount owed at Closing will be higher. SPALETin hn .R7(_)12{11ffi� i 1 2— 1 2-1 2 PO4 : `I5 IN i b. Texas Tax Code, Section 34.05(1). Notwithstanding Section 3(a) of this Option, if Seller is able to obtain the consent of all taxing entities to sell the Property under the provisions of Section 34.050) of the Texas Tax Code on or before the date of Closing, then the Purchase Price will be $44,006.00 and all post judgment taxes will be released by the Tarrant County Tax Assessor/Collector, subject to any other changes in the Texas Tax Code prior to Closing If Seller is unable to obtain the consent of all taxing entities by Closing, then Purchaser will be responsible for payment of the Purchase Price and post judgment taxes as described in Section 3(a) above. 4. Exercise of Option and Closing. a. Exercise of Option. Purchaser may exercise this Option at any time on or before December 31, 2012 by delivering (i) written notice of its intent to exercise the option, and (ii) a cashier's check or money order made payable to the City of Fort Worth in the amount of $10,000 ("Earnest Money"). Both items (i) and (ii) should be mailed to Seller at the address listed in Section 6 of this Option. b. Closing. Closing will occur no later than March 31, 2013 ("Closing"). If this Option is exercised and the Property sold in accordance with the teens hereof, then the Option Fee and Earnest Money shall apply to the Purchase Price. The sale of the property shall be via Tax Resale Deed Without Warranty, and the sale shall be "as -is, where -is ' with Purchaser assuming all liability for hens, taxes and other encumbrances to title. 5. Conditions to Sale. Notwithstanding anything stated in this Option, Purchaser's right to purchase the Property is conditioned on the following• a. Purchaser must deliver (i) a written description of Purchaser's intended use of or development plans for the Property, and (ii) proof that Purchaser has financing available to complete such plans. b. Seller must be satisfied in its sole discretion with Purchaser's intended use of or development plans for the Property, and with Purchaser's ability to finance such development. c. The sale of the Property must be approved by the Fort Worth City Council. If any of the conditions above are not met on or before December 31, 2012, this Option shall expire and Purchaser shall have no further rights regarding the Property and Seller shall have no further obligation to Purchaser. The Option Fee will be retained by changes hereof shall be binding on any party hereto unless set forth in a document executed by such parties or a duly authorized agent, officer or representative hereof. 8. Succession. This Option shall inure to the benefit of and be binding on the parties hereto and their respective successors and assigns. Purchaser shall not assign this Option or any rights or obligations hereunder to any third party without the prior written consent of Seller. 9. Governing Law and Venue. This Option shall be governed by and construed in accordance with the laws of the state of Texas. Venue of any action brought under this Option shall be in Tarrant County, Texas if venue is legally proper in that county. 10. Performance of Agreement The obligations under the terms of this Option are performable in Tarrant County, Texas. 11. Severability In case any one or more of the provisions contained in this Option shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof, and this Option shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 12. No Partnership. The terms, provisions and agreements set forth in this Option are not intended to create a partnership or any other kind of joint venture, and neither party hereto is hereby authorized or appointed to act as the agent or representative of the other in any respect. [SIGNATURES APPEAR ON FOLLOWING PAGE] Seller, and shall not be refundable. Any Earnest Money will be returned to Purchaser. This Section 5 supersedes any other statement, section or clause of this Option. 6. Notices. a. Any notice required or permitted to be given hereunder by one party to the other shall be in writing and the same shall be given and shall be deemed to have been served and given if delivered in person to the address set forth herein below for the party to whom the notice is given, or placed in the United States mail, return receipt requested, addressed to such party at the address hereinafter specified. b. The address of Seller for all purposes under this Option and for all notices hereunder shall be: The City of Fort Worth Housing and Economic Development Department 1000 Throckmorton Fort Worth, Texas 76102 Attn: Robin Bentley With a copy to: City Attorney's Office 1000 Throckmorton Fort Worth, Texas 76102 Attn.* Leann D. Guzman c. The address of Purchaser for all purposes under this Option and for all notices hereunder shall be: Carson Street Garden of Eden Neighborhood Association, Inc. 1412 Carson Street Fort Worth Texas 76117 Attn: Brenda Sanders -Wise d. From time to time any party may designate another address within the forty-eight (48) contiguous states of the United States of America for all purposes of this Option by giving the other party not less than thirty (30) days' advance written notice of such change of address in accordance with the provisions hereof. 7. Entire Agreement 1 his Option contains the entire agreement between Seller and Purchaser, and no oral statements or prior written matter not specifically incorporated herein shall be of any force and effect. No variation, modification, or EXECUTED by Seller and Purchaser to be effective as of the date the last party executes this Option. Seller: CITY OF FORT WORTH, a Texas municipal corporation, on its own behalf and as trustee for the State of Texas, Tarrant County, Tarrant County Water Control and Improvement District No. 1, Tarrant County Hospital District, Tarrant County Education District, Tarrant County Right of Way District, and Birdville Independent School District, all named as plaintiffs in Cause No. L-10960-93 of the 23 6tn Judicial District Court in Tarrant County By: Name: Fernando Costa Title: Assistant City Manager Date: ,(2.4i /it Approved as to Legality and Form: ssistant City Purchaser: orney, r. to/04A-- mac Z. -/5/4 CARSON STREET GARDEN OF EDEN NEIGHBORHOOD ASSOCIATION, INC. By: Name: Brenda Sanders -Wise Title: Treasurer -Founder Date: //- 2 ,,} FFICilz L WEc nRo D`►7J117[�G��G�,1 M&C Review Page 1 of 2 dfflc al to ofthe :Cty of Fort Worth, Texas COUNCIL ACTION: Approved on.10/23/2012 CONTINUED FROM A PREVIOUS WEEK DATE: 10/9/2012 REFERENCE NO.: L-15444 LOG NAME: NON -CONSENT PUBLIC HEARING: SUBJECT: Authorize Direct Sale of a Tax -Foreclosed Property Located at 1312 Carson Street to the Garden of Eden Neighborhood Association in the Amount of $30,091.55, in Accordance with Section 34.05 of the Texas Tax Code for Use as a Community Garden (COUNCIL DISTRICT 4) CODE- L TYPE: 171312 CARSON ST NO RECOMMENDATION: It is recommended that the City Council: 1 Authorize the direct sale of a tax -foreclosed property located at 1312 Carson Street to the Garden of Eden Neighborhood Association in the amount of $30 091 55, in accordance with Section 34.05 of the Texas Tax Code for use as a community garden; 2. Authorize the execution of option to purchase; and 3. Authorize the execution and recording of the appropriate instruments conveying the property to complete the sale. DISCUSSION: The City of Fort Worth (City) received the below referenced property through a Constable Sale after a tax -foreclosure suit. The City is authorized to conduct a direct sale of tax -foreclosed property to a buyer for the lesser of the market value specified in the judgment or the tax judgment amount plus any accrued post judgment taxes. A written Request to Purchase the property located at 1312 Carson Street was received from the Garden of Eden Neighborhood Association for use as a community garden. Staff recommends selling the property located at 1312 Carson Street for a purchase price in the amount of $30,091.55. The Buyer will also be responsible for payment in the amount of $22,163.15 in any post judgment taxes owed to Tarrant County. If prior to closing, Staff is able to obtain the consent of all taxing jurisdictions to sell the property for the Tarrant County Appraisal District value then the purchase price will be in the amount of $44,006.00 and no post judgement taxes will be owed. Staff recomends selling this property to the Garden of Eden Neighborhood Association which will be responsible for all closing costs for this transaction, as well as any post judgment taxes, penalties and interest which may accrue before closing. The Planning and Development Department has reviewed the current zoning of this property, which is A-5, and determined that the zoning classification of the property is compatible with respect to the existing land use, the existing land uses of the surrounding neighborhood and future land use designations indicated by the Comprehensive Plan. http://apps.cfwnet.org/counciljacket/mc review.asp?ID=17432&councildate=10/23/2012 12/14/2012 M&C Review Page 2 of 2 !ADDRESS 'LEGAL DESCRIPTION 1312 Carson Street Tuggle, Henry P Survey A 1514 Tr 1 C .67 acres Akers John Survey A 24 Tr 6E 1.06 acres This property is located in COUNCIL DISTRICT 4, Mapsco 65J. PRICE $30,091.55 FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that the Housing and Economic Development Department is responsible for the collection and deposit of funds due to the City. TO Fund/Account/Centers FROM Fund/Account/Centers GG01 240126 0000000 $30.091.55 Submitted for City Manager's Office by: Originating Department Head: Additional Information Contact: ATTACHMENTS 1312 Carson Mao.odf Fernando Costa (6122) Jay Chapa (5804) Cynthia Garcia (8187) Ryan Ramphul (7369) • http://apps.cfwnet org/council_packet/mc review.asp?ID=17432&councildate=10/23/2012 12/14/2012