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HomeMy WebLinkAboutContract 44003 (2)CITY SECRETARY CONT CT NO. ...u,s7 v COMPLETION AGREEMENT This Completion Agreement ("Agreement) is made and entered into by and among the City of Fort Worth ("City"), and _CTMGT Valley Ridge, LLC_, a Texas Limited Liability Company ("Developer"), and United Development Funding IV ("Lender"), effective as of December 20, 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 approximately38.092 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 FPO12-010_ or FS wj P ; and WHEREAS, the Developer and the City have entered into a Community Facilities Agreement relating to the development of Valley Ridge Phase 2 (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 12-27-12 P03:54 IN )G , "fGfR,L-3 iTMCCM ©tf17 i 3 IFINI ARN Min N7M11111, 'Ur WHEREAS, the Parties desire to set forth the terms and conditions of such accommodations as are described above. 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 One Million Two Hundred Ninety Eight Thousand Eight Three and Five Cents Dollars ($1,298,083.05), 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 Page 2 of 12 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 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. Page 3 of 12 If the City does not timely elect to complete the construction of the Community Facilities, then the Lender may at its election terminate this 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. Page 4 of 12 8. Easements. In the event the City or the Lender undertakes the completion of the Community Facilities, the Developer (and to the extent 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. Page 5 of 12 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 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 -Assignment 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: Page 6 of 12 and/or City of Fort Worth Planning and Development Department 1000 Throckmorton Stieet Fott Worth, Texas 76102 Attention: CFA Division David Schroeder, Development Manager Email: David.Schroeder@fortworthgov.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 Fott 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: CTMGT Valley Ridge, LLC Attn: Chase Rowan 1221 N. IH-35E Suite 200 Carrollton, Texas 75006 (iii) Notice to the Lender shall be addressed and delivered as follows: United Development Funding IV Attn: Tyson Walter 1301 Municipal Way, Suite 100 Grapevine, TX 76051 Page 7 of 12 Email: twalter 2i umth.com 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) Page 8 of 12 Executed IN QUADRUPLICATE by the Parties hereto: CITY OF FORT WORTH: treodessa ‘i••—• Fernando Costa Assistant City Manager Date: /1/2/4,2 APPROVED AS TO FORM: Douglas W. Black Assistant City Attorney ATTEST: iceit ? ry J. Kayser City Secretary M&C: Date: DEVELOPER: CTMGT ValleyRidge, LLC By: Centamtar Ten -as, LLC its Manager Name: Title: Date: f(9 LENDER: United Development Funding IV N Title: GoO • Peon9 ausets) ,�,► tc911,01:* ? to Vbl,/"EXESA, United Development Funding IV, 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 CTMGT Valley Ridge, LLC. Page 9 of 12 OFFICIAL RECORD CITY SE ``iiiizttiAii V Ft WORTH TM, LIST OF EXHIBITS TO THE COMPLETION AGREEMENT EXHIBIT A - LEGAL DESCRIPTION EXHIBIT B - APPROVED BUDGET Page 10 of 12 EXHIBIT A Page 11 of 12 38.092 ACRF TRACT FII-LI) NOTES BETN(i a 38.092 acre tract of land situated in the Walter I louston Survey. ,\bstract No. 746. Tarrant (Taunt)°, 1 exas and being part of 38.147 acre tract of land described in deed to C"I MGT Valley Ridge. LI_C., as recorded in Instrument D212055269. Deed Records (arrant County. Texas. said 38.092 acre tract being more particularly described by metes and bounds as follows: BEGINNNG at a 5/8-inch iron rod with cap stamped "G&W' found for the southeast comer of said 38.147 acre tract and the southwest corner of Saratoga. Phase 2. an addition to the City of Fort Worth. as recorded in Cabinet A. Slide 10652. Plat Records. Tarrant County. Texas. said corner being in the north boundary line of The Villages of Woodland Springs West. Phase VI-5. an addition to the City of Fort Worth. as recorded in Cabinet A. Slide 10815 of said Plat Records: THENCE South 89 degrees 57 minutes 26 seconds West. with the common boundary line of said 38.147 acre tract. said Phase VI-5 and The Villages of Woodland Springs West. Phase V-8, an addition to the City of Fort Worth. as recorded in Cabinet A. Slide 11974 of said Plat Records a distance of 1290.89 feet to a 1/2-inch iron rod with yellow cap stamped ' RPLS 3963" set for the most southerly southwest corner of said 38.147 acre tract: THENCE. North 00 degrees 19 minutes 58 seconds Fast, with a west boundary line of said 138.147 acre tract, a distance of 258.07 feet to 1/2-inch iron rod with yellow cap stamped "RPLS 3963' set for an ell corner of said 18.147 acre tract: THENCE North 89 degrees 40 minutes 15 seconds West. with a south boundary line of said 38.147 acre tract, a distance of 117.26 feet to a 1/2-inch iron rod with yellow cap stamped "RPLS 3963' set for the southeast comer of a 0.056 acre tract: THENCE Northwesterly and Westerly. with the easterly and north boundary lines of said 0.056 acre tract. the following courses: North 17 degrees 17 minutes 45 seconds West, a distance of 10.38 feet to a 1/2-inch iron rod with yellow cap stamped "RPLS 3963' set for corner: North 14 degrees 34 minutes 30 seconds West. a distance of 10.46 feet to a i/2-inch iron rod with yellow cap stamped "RPLS 3963' set for corner: North 89 degrees 40 minutes 15 seconds West. a distance of 118.69 feet to a 1'2-inch iron rod with yellow cap stamped "RPLS 3963" set for the northwest corner of said 0.056 acre tract, said corner being in the west boundary line of said 38.147 acre tract and in the easterly right-of-way line of North Riverside Drive. a variable is idth right-of-way: TIIENCE North 00 degrees 05 minutes 53 seconds West, with the West boundary line of said 38.147 acre tract. a distance of 857.07 feet to a 1/2-inch iron rod with } ellow cap stamped 'RPLS 3963 ' set for the northwest corner of said 38.147 acre tract and the southwest corner of Valley Ridge. an addition to the Cite of Fort WW'orth. as recorded in Cabinet A, Slide 12157 irf said Plat Records: TIIE.NC'I= Easterly. with the common boundary lines of said 38.147 acre tract and said Valley Ridgc. the follo\yina cx urses and distances: East. a distance of 181..7 feet to a 1/2-inch iron rod with vellow cap stamped "RPI,S 3963" set for corner: South. a distance of 10.00 feet to a I /2-inch iron rod with yellow cap stamped "RPLS 3963" set for corner from \\hick a 1/2-inch iron rod found bears South 57 degrees 57 minutes 08 seconds East. a distance of 0.29 feet: East_ a distance of 638.48 feet to a 1/2-inch iron rod with yellow cap stamped 'RPLS 3963-- set for corner from which a 1/2-inch iron rod found bears South 35 degrees 55 minutes 26 seconds East, a distance of 0.23 feet: South 79 degrees 43 minutes 59 seconds East. a distance of 131.20 feet to a 1 / 2-inch iron rod found for corner: North 79 degrees 33 minutes 29 seconds Fast a distance of 50.00 feet a 1/2-inch iron rod with vellow cap stamped ' RPLS 3963' set for the beginning of a non -tangent curve to the left haying a radius of 225.00 feet whose chord bears North 15 degrees 34 minutes 31 seconds West. a distance of 40.57 feet: Northwesterly. with said curse to the left. through a central angle of 10 degrees 20 minutes 41 seconds_ an arc distance of 40.62 feet to a I ,'2-inch iron rod with \ ello\y cap stamped RPLS 3963' set for the end of said curve: South 79 degrees 43 minutes 59 seconds East.. a distance of 147.18 feet to a 1/2-inch iron rod found for corner: North 89 degrees 53 minutes 15 seconds East. a distance of 398.36 feet to a 1/2-inch iron rod with yellow cap stamped "RPLS 3963" set for We northeast comer of said 38.147 acre tract. said corner bein4g in the west boundary line of the aforementioned Saratoga. Phase 2: THENCE South 00 degrees 06 minutes 45 seconds East with We common boundary line of said 38.147 acre tract and said Saratoga. Phase 2. a distance 1124.84 feet to We POIN f OF BEGINrNING AND CONTAINING 1.659.275 tiquare feet or 38.092 acres of' land. EXHIBIT B Page 12 of 12 Cost Summary Sheet Project Name: Valley Ridge Phase 2 CFA No.: 2012-072 DOE No.: 6841 An Engineer's Estimate of Probable Cost is acceptable. However, the construction contract price will ultimately determine the amount of CFA fees and financial guarantee. The bid price and any additional CFA payments will be required prior to scheduling a pre -construction meeting. An itemized estimate corresponding to each project specific exhibit is required to support the following information. Items Developer's Cost A. Water and Sewer Construction 1. Water Construction 2. Sewer Construction Water and Sewer Construction Total B. TPW Construction 1. Street 2. Storm Drain 3. Street Lights Installed by Developer TPW Construction Cost Total Total Construction Cost (excluding the fees): Construction Fees: C. Water/Sewer Inspection Fee (2%) D. Water/Sewer Material Testing Fee (2%) Sub -Total for Water Construction Fees E TPW Inspection Fee (4%) F. TPW Material Testing (2%) G. Street Light Inspsection Cost H. Street Signs Installation Cost Sub -Total for TPW Construction Fees Total Construction Fees: Financial Guarantee Options, choose one Bond = 100% Completion Agreement = 100% / Holds Plat (Cash Escrow Water/Sanitary Sewer= 125% (Cash Escrow Paving/Storm Drain = 125% Letter of Credit = 125% w/2yr expiration period 137,187.90 250,105.10 387,293.00 747,493.65 121,296.40 42,000.00 910,790.05 1,298,083.05 7,745.86 7,745.86 15,491.72 34,751.60 17,375.80 1,680.00 53,807.40 69,299.12 Amount 1,298,083.05 1,298,083.05 484,116.25 1,138,487.56 1,622,603.81 Choice (ck one)