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City Secretary Contract#
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54888
CONTRACT OF SALE AND PURCHASE j
(Sale by City of Fort Worth of Lake Worth Leased Lot)
THIS CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into
by and between the CITY OF FORT WORTH,TEXAS,a Texas home rule municipal corporation,
acting by and through its duly authorized City Manager or Assistant City Manager ("Seller") and
James and Charlotte Finley ("Purchaser") as of March 24, 2020 ("Effective Date").
RECITALS
1. Seller is the owner of the real property only (exclusive of improvements) located at 6638
Cahoba Drive (the Property"), as shown and more particularly described on the attached
Exhibit"A", incorporated herein for all purposes.
2. Seller and Purchaser (as successor-in-interest to original lessee) are parties to a ground
lease for the Property dated February 1, 1982, as amended by a lease amendment dated
July 9,2019 (collectively,the"Lease Agreement").
3. The Lease Agreement provides Purchaser with an option to purchase("Option"),pursuant
to Section 272.001(h) of the Local Government Code, and by execution of this Contract,
Purchaser hereby exercises the Option.
AGREEMENT j
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 1. 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 AS-IS, as set forth in Section 5.
(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 all purposes: all right,title, and interest in and j
to all oil, gas, and other minerals in and under the Property, if any.
(d) An avigation easement is reserved on behalf of the public for free and unobstructed
passage of aircraft over the subject property in the navigable airspace above the minimum altitudes
of flight prescribed by federal regulations, including airspace needed to ensure safety in the takeoff
and landing of aircraft. Purchaser hereby releases Seller, its officers, agents and employees from
Purchase Contract 6638 Cahoba Drive OFFICIAL RECORD
pg. 1
CITY SECRETARY
FT.WORTH, TX
an and all claim and liability resulting from the noise vibration fumes dust fuel electromagnetic
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interference and lubricant particles and all other effects,whether such claims are for injury or death
to person or persons or damages to or taking of property, arising out of or in connection with the
use of this easement, when such use is in compliance with the regulations and guidelines of the
Federal Aviation Administration, successor agency, or other governmental authority with
jurisdiction over the matter.
(e) Seller shall retain the following easements and any easements retained by Seller
will be at no cost to Seller: all existing easements, whether of record or not, known or unknown.
(f) Pursuant to City of Fort Worth Code of Ordinances Section 35-3,Purchaser agrees
to connect to water arid sanitary sewer lines if available prior to Closing, or, if not available prior
to Closing, as soon as practicable after such lines are made available. This requirements shall
survive Closing.
Section 2. Purchase Price.
The purchase price ("Purchase Price") for the Property,payable by Purchaser to Seller in
cash at Closing(defined below), is Thirty thousand and 00/100 dollars
Section 272.001(h) of the Local Government Code requires the Property to be sold for fair market
value of the land as determined by a certified appraiser, and pursuant to an appraisal obtained by
James and Charlotte Finley, dated June 10, 2019, Seller has determined that the Purchase Price j
reflects the current fair market value of the Property.
Section 3. Title Commitment and Survey.
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(a) Within fifteen (15) days after the Effective Date, Purchaser shall 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 liens, claims, easements, rights-of-way, i
reservations,restrictions,encroachments,tenancies,and any other encumbrances (collectively,the
"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 twenty-five (25) days after the Effective Date, Purchaser may obtain, at
Purchaser's sole cost and expense, an updated survey ("Survey") consisting of a plat and field
notes describing the Property, prepared pursuant to a current on-the-ground staked survey
performed by a registered public surveyor or engineer satisfactory to Purchaser and Title
Company. The Survey shall (i) be certified to Purchaser, its successors and assigns, and Title
Company, (ii) reflect the actual dimensions of and the total number of square feet within the
Property,net of any portion thereof lying within a publicly dedicated roadway or a utility easement,
(iii) identify any rights-of-way, easements, or other Encumbrances by reference to applicable
recording data, and (iv) include the Surveyor's registered number and seal, and the date of the
Survey. The description of the Property prepared as a part of the Survey will be used in all of the
documents set forth in this Contract that requires a legal description of the Property.
Purchase Contract 6638 Cahoba Drive
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(c) If the Title Commitment or Survey 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 five (5) 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 may 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,
and give Purchaser written notice thereof within the five (5) 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
Period but prior to the expiration of the option period (as defined below), 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.
PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT
PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 3(d) OR ANY OTHER
TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE UNDER THE
LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO I
THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE LEASE
AGREEMENT.
Section 4. Review Reports. DELETED BY AGREEMENT OF THE PARTIES.
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 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
Purchase Contract 6638 Cahoba Drive
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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 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
Purchase Contract 6638 Cahoba Drive
pg.4
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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.
Section 6. Option Period. DELETED BY AGREEMENT OF THE PARTIES
Section 7. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right 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. Purchaser shall release to Seller any and all independent studies or results
of Tests obtained during the Option Period.
Section 8. Closing Contingencies. DELETED BY AGREEMENT OF THE PARTIES.
Section 9. Closing.
(a) The closing of the sale of the Property by Seller to Purchaser ("Closing") shall
occur through the office of the Title Company no later than eighteen(18)months after the Effective
Date. At the Closing, all of the following shall occur, all of which are deemed concurrent
conditions:
(1) Seller, at Purchaser'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 known or unknown
easements, rights-of-way, and prescriptive rights, whether of record or not;
containing (A) reservations pursuant to Section 1(c), (d) and (e); (B) the
Purchase Contract 6638 Cahoba Drive
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following statement as required by Local Government Code 272.001(h),
"To protect the public health, safety, or welfare and to ensure an adequate
municipal water supply,the Property sold by the City of Fort Worth under
Local Government Code 272.001(h) is not eligible for and the owner is not
entitled to the exemption provided by Section 11.142(a),Water Code;"and
(C)the language required in Section 5,with the precise form of the Deed to
be determined pursuant to Section 11 below;
(ii) Any other instrument or document necessary for Title Company to
issue the Owner Policy in accordance with Section 9(a) (3) below.
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(2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be
delivered to Seller through the Title Company a certified check or such other means
of funding acceptable to Seller, in an amount equal to the Purchase Price, plus any
rent due and owing under the Lease Agreement.
(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 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.
(4) Seller and Purchaser shall each pay their respective attorneys'fees.
(5) 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.
(6) Purchaser shall be responsible for all ad valorem and similar taxes and
assessments, if any, relating to the Property.
(c) Upon completion of the Closing, Seller shall deliver possession of the Property to
Purchaser.
Section 10. 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 except the following: NA. PURCHASER SHALL BE SOLELY
RESPONSIBLE FOR AND SHALL INDEMNIFY SELLER FROM PAYMENT OF ANY
BROKERAGE FEES OR COMMISSIONS.
Section 11. Closing Documents_. DELETED BY AGREEMENT OF THE PARTIES.
Section 12. 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
Purchase Contract 6638 Cahoba Drive
pg. 6
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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.
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(b) The address of Seller under this Contract is:
City of Fort Worth With a copy to:
Property Management Department City of Fort Worth
Attn: Nita Shinsky City Attorney's Office
900 Monroe Street,Suite 400 Attn: Leann Guzman
Fort Worth,Texas 76102 200 Texas Street
Fort Worth,Texas 76102
(c) The address of Purchaser under this Contract is:
_James and Charlotte Finle
1308 Lake Street
Fort Worth, TX 76102
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(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.
Section 13. 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.
NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, PURCHASER
ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT PURSUANT TO
THE TERMINATION RIGHT IN THIS SECTION 13(a) OR ANY OTHER
TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE UNDER THE
LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO
THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE LEASE
AGREEMENT.
(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. A termination by
Purchase Contract 6638 Cahoba Drive
Pg.7
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Contract by giving written notice thereof to Seller prior to or at the Closing. A termination by
Purchaser of this Contract due to Seller's default will not result in a default under the Lease
Agreement.
Section 14. 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 15. Assigns. This Contract inures to the benefit of and is binding on the parties
and their respective legal representatives, successors, and assigns. Any assignment must be
approved by City of Fort Worth and this Contract cannot be assigned less than 60 days prior to the
scheduled Closing. j
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Section 16. Time of the Essence. It is expressly agreed that time is of the essence with
respect to this Contract.
Section 17. 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 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.
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
Purchase Contract 6638 Cahoba Drive
pg. 8
proof of this Contract, it shall not be necessary to produce or account for more than one such
counterpart.
This Contract is executed as of the Effective Date.
SELLER: PURCFASFR
CITY OF FORT WORTH,TEXAS Ja an arlot a Finley
Dana&_(tzL oAC
B ypana Burghdoff ov 17,20201102 CST) _- _ B :
Ke*in ff, Assistant City Manager Jame Fin
DA*40, HDDFF- -
Date:
C otte inlet'
ATTEST:
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Pvo o=d
CA oo0 0o*1
Mary Kayser �daa�A00000
City Secretary
M&C: L-15964
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APPROVED AS TO LEGALITY AND FORM
✓�Gt�w��t2�
Assistant City Attorney
CONTRACT MANAGER
By signing I acknowledge that I am the person responsible for the monitoring and administration
of this contract, including ensuring all performance and reporting requirements.
Name: Nita Shinsk
Title: Land Agent
Purchase Contract 6638 Cahoba Drive
pg. 9
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By its execution below, Title Company acknowledges receipt of this Contract and agrees to hold
and deliver the same and perform its duties pursuant to the provisions of this Contract.
TITLE COMPANY:
ICI
By: HLAvAo —T—rrLe
Name: LvwaANE.
Title: LSceow RGE..rr
Date: I I l i01a0.ao
Phone chQ tam
Fax �►�.3�-0. t.131
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Purchase Contract 6638 Cahoba Drive
pg. 10
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Exhibit"A"
Property Description
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Lot 33R, Block 2, Lake Worth Leases Addition, Tarrant County, Texas and otherwise
known as 6638 Cahoba Drive.
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Exhibit"A"
LEASE AGREEMENT
THE STATE OF TEXAS
KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF TARRANT
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The City of Fort Worth,Lessor,a home rule municipal corporation situated in Tarrant County,Tetras,(hereinafter
sometimes referred to as"City")acting herein by and through. -its duly authorized ;
City Msaager,and Lossce,hereby make and enter into the following lease agree-
ment.
I.
For and in consideration of the prompt payment by Lessee,when due,of all rents as herein provided,and further
for and In consideration of the full and timely performance by Lessee of all of Lessee's duties and obligations in strict
compliance with the covenants,conditions and agreements herein contained,City hereby demises and leases to Lessee,
and Lessee hereby accepts from City,the following described real property for the term and uses and subject to the
conditions set forth herein:
LOT•33, DLOCK 2, LW WORTH LEASE SURVZY
AKA 6638 Cahoba Drive
B.TERM
The term of the lease shall be 50 ya commencing Fabruarq I, 1982 and ending
January 31, 2032
The City may offer five(5)year extensions to the term of the lease on each fifth anniversary of the lease.The Lessee
may refuse such extension by giving notice to the City,in writing,within sixty(60)days after receipt of notice of any
extension.
III.LESSEE'S RIGHTS AND OBLIGATIONS
Lessee shall:
A. pay annual rent to the City of Fort Worth in the sum of S 188.00 ,said rent payable in 12 equal
installments,one such installment due on the rust of each month.
B. pay the rent due under this lease to the Assessor-Collector of Taxes for the City of Fort Worth,or other office
designated by the City.
C. pay rent for each year after the first year in an amount that shall be adjusted by eighty percent(80%)of the
change in the annual average of the Consumer Price Index U.S.City Average,"all items"index,all urban consumers
(CPI-U)from the annual average for the previous calendar year,as published by the Bureau of Labor Statistics for the
United States Department of Labor,said adjustment to be computed by dividing the CPI-U for the most recent year
by the CPI-U for the immediately preceding year,subtracting one(1)from that quotient,multiplying that result by
eight-tenths(0.8),adding one(1)to that product,and multiplying that sum by the rent for the previous year.
D. be able to use the leased land for residential and water recreational purposes,in compliance with applicable
zoning ordinances.
E. use and occupy the leased land,In compliance with the laws of the United States of America,the statutes of
the State of Texas,and the Charter and Ordinances of the City of Fort Worth,whether now in effect or hereinafter
adopted so long as any hereinafter adopted ordinance or charter provision is not adopted solely for the purpose of
limiting the rights of Lessee and similarly situated Lessors.
F. accept the premises in their present condition as being suitable for all purposes of this lease.
0. be deemed to be an independent tenant in possession of the premises and responsible to all parties for his acts
and omissions with regard thereto,and the City shall in no way be responsible for any act or omission of the Lessee.
H. indemnify,hold harmless and defend the City,Its officers,agents,and employees,from and against any and
aU claims for damages or injury,including death,to persons or property arising out of or incident to the leasing or the
use and occupancy of the leased land by Lessee,his guests or invitees. j
1. indemnify,hold harmless and defend City from and against any and all mechanic's and materialmen's Hens or
any other Hen,claim or charge imposed upon the leased land or rising as a result of any conduct or activity by the
Lessee or anyone on his behalf.
1. provide and maintain suitable methnds*und mein for the disposal of trash,bW- y waste,and excreta,in corn-
pUance with applicable sanitation laws and.ordinanoes.
K. not drill or dig any well on the leased land without the prior written approval of the City nor use the water
from such well until it has been tested and approved by the appropriate authorities.
L. not commit,or allow to be committed,any waste on the premLus,nor create or allow any nuisance to exist on
the premises.
M. not keep or permit any animas on the leased premises other than domesticated dogs and cats.
IV.(LESSOR'S RIGHTS AND OBLIGATIONS
The City of Fort Worth shall:
A.approve the sale,or a.«i,�tment(hereinafter collectively assignment)of this lease or remaining term,provided
that:
l.W amounts owed to the City hereunder and City ad valorem taxes are paid current to the date of such assign-
ment;and
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2, the assignment Is evidenced In writing;and
3. In said assignment the assignee expressly accepts,assumes,and agrees to perform all terms,conditions and
limitations to be kept and performed by Lessee under this lease;and
4. said writing is executed and:acknowledged in recordablaform;and
5. said assignment is submitted to the City at the City Manager's office or such other office designated by the
City Manager.
Within 10 days of recelpt of the assignment the City shall determine whether the assignment Is in compliance with
provisions A-1 through A 5 above and notify both parties to said assignment if the assignment does not comply with
those provisions.The City shall acknowledge compliance with the above provisions on the face of said assignment,
and assignment shall then be recorded in the office of the County Clerk of Tarrant County,Texas,at Lessee's ex-
pense.Compliance with the provisions set out above shall relieve the Lessee from further liability under this lease.
B. have the right to inspect the leased premises for compliance with City of Fort Worth Minimum Building Stan-
dards Code,City Ordinance No.8006,at the time of any sale or transfer.The City shall notify the purchaser or assignee
in writing of any violations of said ordinance within 10 days of the submission of a proposed assignment to the City.
The purchaser or assignee shall not be issued a certificate of occupancy by the City until the requirements of such or-
dinance have been complied with.
C. shall not convey,sell,or transfer Its interest in the leased land without allowing the Lessee the opportunity to ac-
quire the leased land unless the conveyance,sale,or transfer is to a governmental entity with the power to condemn
the property for the purpose it is acquired.All transfers shall be subject to the competitive bidding laws of the State of
Texas and the ordinances and charter of the City of Fort Worth.
D. provide yearly statements of the rent due hereunder and in such statement specify the number of years remaining
In the term of this lease.
B. have the right to enter upon the above described property at reasonable times and under reasonable cir-
cumstances for the purposes of examining and inspecting the leased land to determine whether Lessee has complied
with his obligations hereunder. This provision shall not be construed to authorize entry into residences or other
buildings on the leased land except where such entry is specifically authorized by the provisions of this lease, the
statutes of the State of Texas,or the ordinances of the City of Fort Worth.
F. warrant that Lessee will have quiet enjoyment and peaceful possession of the leased land,and that the City will
defend the Lessee In such quiet enjoyment and peaceful possession during the term of this lease.
G. The City Manager shall review this lease prior to each fifth anniversary and shall make recommendations to the
City Council regarding extensions.
V.LESSOR'S OPTIONS
The City of Fort Worth may,in the event that Lessee shall give notice to the City that a financial hardship exists in
the payment of rentals due hereunder,the City Manager may waive any portion of that year's rent after consideration j
of said hardship.Lessee shall have the right to present his request to the City Council of Fort Worth should the City
Manager deny the request.
Any rents waived as a result of such hardship and remaining unpaid shall constitute a lien against the Lessee's im-
provements and such unpaid rents shall bear interest at the current legal rate.
VI.LESSEE'S OPTIONS
Lessee may:
A, sell,assign,or sublet this lease or remaining term thereof.
B. construct new structures and enlarge existing structures on the leased land provided that such construction is in
accordance with all applicable City Codes and Ordinances.
C. make alterations,remodel, and make improvements to existing structures and the leased land,provided that
such actions shall be in accordance with applicable City Codes and Ordinances.
D. terminate this lease without reimbursement for Lessee's structures and improvements at any time by giving the
City 30 days notice of intention to terminate.
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VII.EXPIRATION OF LEASE
A. Upuu expitatl.)&of the term of tWs ieasC the'=L shall pay to tut Lessee an amount equal to the then market
value of any structures or improvements heretofore made or erected on the leased premises,except that payments for
any new structure and enlargements to existing structures made or erected during the final 35 years of the lease term
will be a pro rate amount based on the number of years the structure or f nproveMents are in place or the number of
years remaining on the lease at the time said structure or Improvements were made,whichever is greater,times 2.86
percent,never to exceed 100%of the market value of the new structure and the enlargement to the existing structure.
B. Replacement of all or.part of structures destroyed in whole or in part by fire,explosion or'act of God are deemed
structures or improvements heretofore made or erected on the leased premises.
C. The City shall pay the Lessee the market value of the structures and improvements as defined above upon
possession of the property.Acceptance of the amount offered by the City does not forfeit Lessee's right to dispute the
amount paid,nor shall any acceptance constitute a waiver of any le ml remedv T.essee may have to determine market
value.In the event that a court of competent jurisdiction determines that the amount paid to the Lessee by the City is
in excess of market value of such structures or Improvements,the Lessee shall promptly refund such excess to the City.
2.
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VIII.TERMINATION OF LEASE
A. In the event the Lessee:
1. h In arrears in the payment of the rents,or other amounts agreed to be paid under the terms of this lease;or
2. has failed to perform any obligation under this itme,then the City may give notice to the Lessee of termina-
tion of the lease by default,said notice to specify in detail the defaults upon which the termination would be based.In
said notice the City shall demand that actions be taken within 45 days to cure the default or defaults upon which the
termination is based or the lease shall be terminated.
B. In the event of a default by Lessee,and said Lessee does not take action to cure the default within 45 days of the
notice from the City,the lease may be terminated and the City shall have no duty to reimburse the Lessee for struc-
tures or improvements to the leased land.The Lessee shall have the right to remove said structure,improvements,and
personal property within 90 days from the date of lease termination by default,and shall vacate the leased land at the
end of said 90 days.All such property not removed within 90 days shall become the property of the City.
C. In the event rentals to be paid trader the terms of this lease is not paid when due,an additional late penalty of
1.5%per month shall be added to the amount due.
D. Upon termination of this lease or expiration of the term of this lease,Lessee shall be entitled and authorized to
remove from the premises all items of personal property belonging to Lessee not permanently affixed to the realty and
all structures and improvements for which no reimbursement is made under the terms of this lease.
MIX.MORTGAGES
A. So long as no default exists under the terms of this lease,the Lessee or any Assignee may mortgage his leasehold
estate and improvements situated thereon to secure a loan or loans of money actually made,or that will be made,or
any extension or renewal of the same.
B. Such mortgage or deed of trust shall be in every respect subject,subservient and subordinate to all the conditions
and covenants of this lease.
C. In the event of a default that could result in the termination of this lease without reimbursement to Lessee for the
improvements and structures on the leased land,the City shall give notice to the mortgagee as Is required to be given to
the Lessee,and said mortgagee shall have the right to cure said default and/or perform the terms and conditions of
this lease.
D. A mortgagee or trustee under a deed of trust shall have the same right and power to assign this lease,in conjunc-
tion with a trustee's sale or transfer to satisfy Lessee's obligation to a mortgagee,as does the Lessee under the terms of
this lease.
E. At any time the City is to pay the Lessee for structures or improvements on the leased land,the-City shall give
notice to each mortgagee of that payment, and said mortgagee shall have the right to receive payment for any
outstanding obligation secured by mortgage or deed of trust on the leasehold and improvements.
F. The City shall be required to give such notice only if the mortgagee has,in writing,informed the City of its in-
terest and has supplied an address for said notice.
X.OWNERSHIP OF IMPROVEMENTS
All structures and improvements situated on the leased land when this lease is entered into are,and shall continue to
be,the property of the Lessee,and all improvements hereinafter made by the Lessee on the leased land shall be the
property of the Lessee.
XI.SUCCESSORS IN INTEREST
A. In.the event of the death of a Lessee,his successors and estate shall succeed to his interest under this lease,and
those entitled by law to succeed to the Lessee's interest in the lease shall continue to enjoy the rights and benefits
hereunder of the deceased Lessee;
B. In the event that the Lessee or his Assignee is adjudicated a bankrupt,said lease may be assigned as provided
above,and any Assignee shall assume the duties and liabilities as set out above.
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XII.VENUE
Venue of any action brought hereunder shall lie exclusively in Tarrant County,Texas.
XIII.NOTICE
A. Any notice required under this lease;unless otherwise specified,shall be given by depositing in the United States
Mail as certified mail,postage prepaid,addressed to the:
1. Lessee's or Assignee's at the address shown on this lease unless said Lessee or Assignee has furnished to the
City,in writing,instructions to mail notices to another,address;. .
- --Z C tf y Manager of the City of Fort Worth,LYty Hall,Fort Worth,Texas;
3. Mortgagee at the address supplied to the City in writing for the mailing of such notice.
XIV.CONCLUSION
This instrument represents the entire agreement between the parties concerning the leasing of the leased land and
shall be binding upon and shall be to the benefit of the parties hereto,their successors,assigns,and legal represen-
tatives,and all prior leases,assignments,or agreements of any nature concerning the leased land or property situated
thereon are superseded by the terms of this lease.
EXECUTED at Fort Worth,Tarrant County,Texas,this day of
3.
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ATTEST: CITY OF FORT WORTH
Citywtl�
By
APPROVED A TO FOIZ�i 7j, i
City Attorney Lessee Na an J. Can 11
STATE OF TEXAS §
COUNTY OF TARRANT§_
BEFORE ME,the undersigned authority,a Notary Public in and for the State of Texas,on this day personally
appeared `37? 1C.
t yl2n ,known to me to be the person whose name is
subscrfbed to the foregoing instrument,and acknowledged to me that he executed the same as the act and deed of the
City of Fort Worth,a municipal corporation of Tarrant County Texas,and as
thereof,and for the purposes and consideration therein expressed and in the capacity therein ted.
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GIVEN UNDER MY HAND AND SEAL OF OFFICE this - 1� day of
A.D.,198-4. II
4AJ.4%
Notary Public in and for
the State of Texas
I
My Commission Expires:
-STATE OF TEXAS §
COUNTY OF TARRANT§
BEFORE ME,the undersigned authority,a Notary Public in and for the S of Tex on this day
a y personally
appeared t:ariau J. Cantrell ,kno to me to be t e person whose name is
subscribed to the foregoing instrument,and acknowledged to me that he ex ted the same r the purposes and con-
sideration therein expressed.
GIVEN UNDER MY BAND AND SEAL OF OFFICE this 5- y of Jan ua A.D.
1982 '
I
Notary Public in and for
the State of Texas
i
My Commission Expires., November. 30, 1904
4.
City Secretary Contract#
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LEASE AMENDMENT
TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
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This LEASE AMENDMENT TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
("Amendment") is entered into by and between James and Charlotte Finley ("Tenant") and City of Fort
Worth, a Texas home rule municipal corporation("Landlord").
WHEREAS, Landlord entered into a ground lease ("Lease") on February 1, 1982 with the original lessee
I
under the Lease Agreement for property located at 6638 Cahoba Drive, with a legal description more
particularly described as Lot 33R Block 2 Lake Worth Leases Addition,Fort Worth,Tarrant County,TX
(the"Leased Premises"), said Lease attached hereto as Exhibit"A";
WHEREAS, through assignment(s), the Lease is now between Landlord and Tenant for the Leased
Premises,and such Lease has a fifty year term ending on January 31,20329
WHEREAS, pursuant to Section 272.001(h)of the Local Government Code,Landlord is authorized to sell
the property to the person leasing the land for the fair market value of the land as determined by a certified
appraiser;
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WHEREAS, Landlord and Tenant desire to effect a sale of the Leased Premises from Landlord to Tenant
under Section 272.001(h) of the Local Government Code for the fair market value of the land, and,
contemporaneously with this Amendment, is entering into a Purchase and Sale Agreement for the purchase
of the Leased Premises by Tenant within eighteen (18) months of the execution of the Purchase and Sale
Agreement; and
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WHEREAS, the existing Lease does not provide for terms of disposition of the Leased Premises in the
event of a sale or for the terms of the termination of the Lease in the event-of a failure to purchase the
Leased Premises under the Purchase and Sale Agreement, and the parties desire to amend the Lease to
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provide for such terms.
NOW THEREFORE, in consideration of the mutual agreements herein and other good and valuable 1
consideration,the parties agree as follows:
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1. Term. The term of the Lease is hereby amended to end upon the closing of the sale of the Leased
Premises under the Purchase and Sale Agreement, which shall occur within eighteen(18)months
after the Amendment Effective Date("Closing Deadline"). If the closing of the sale of the Leased
Premises has not occurred by the Closing Deadline,this Lease shall expire on the Closing Deadline.
2. Expiration of Lease. Section VII EXPIRATION OF LEASE is hereby deleted in its entirety and
replaced with the following:
"VII.EXPIRATION OF LEASE j
A. Any buildings, improvements, additions, alterations, and fixtures (except furniture and
trade fixtures)constructed,placed,or maintained on any part ofthe Leased Premises during
the lease term are considered part of the real property of the Landlord and must remain on
the Leased Premises and become Landlord's property when the Lease terminates.
B. Before the Lease terminates, Tenant shall remove all personal property, furniture,
machinery,or equipment in,under,or on the Leased Premises.Before the Lease terminates,
Tenant must repair any damage to any buildings or improvements on the Leased Premises
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resulting from the removal.Any such items not removed by the lease termination date will
become Landlord's property on that date."
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3. Ownership of Improvements. Section X OWNERSHIP OF IMPROVEMENTS is hereby
amended by adding the following sentence at the end of the Section: "Upon expiration of this
Lease through the closing of the sale of the Leased Premises under the Purchase and Sale
Agreement, Tenant shall retain all right, title, and interest in the improvements on the Leased
Premises; however, upon the expiration of this Lease without a closing of the sale of the Leased
Premises under the Purchase and Sale Agreement, all right,title, and interest in the improvements
on the Leased Premises shall vest in Landlord without further payment by Landlord to Tenant for
the improvements, and Tenant shall not have any right to enter upon the Leased Premises."
4. Continued Terms and Provisions. All of the terms and provisions of the Lease between the
parties shall remain in full force and effect except as specifically amended herein.
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Executed to be effective as of the date this Amendment is notarized by the City
("Amendment Effective Date").
LANDLORD:
CITY OF FORT WORTH,TEXAS,
a Texas municipal corporation
Dana BUrghdoAc
By: Dana Buighdoff(Kov17,202013:02C57)
K-&�mn,Assistant City Manager
'LAMA E;.,V-QA7oFF'
APPROVED AS TO FORM AND
LEGALITY:
Assistant City Attorney
M&C: L-15964
1295:N/A
ATTEST:
City Secretary
City of Fort Worth Contract Compliance Manager:
By signing I acknowledge that I am the person responsible
for the monitoring and administration of this contract,
including ensuring all performance and reporting requirements.
Name of Employee: ita Shinsk
Title: Land A eng t
TEN T: AMKs FINLEY AND CHARLOTTE FINLEY
�J t
Printe N e: J`,es and Charlotte Finley
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STATE OF TEXAS §
§
COUNTY OF TARRANT § j
I>Ohr-AA
This instrument was acknowledged before me on the 17 day of November 2020, bye-
`�ara gar,r-F
Assistant City Manager of the City of Fort Worth, a Texas municipal corporation, on
behalf of that entity.
i
yMl,,, SELENA ALA
Notary Public, State of Texas
Comm. Expires 03-31-2024
S
Notary ID 132422528 elena Ala 17,202013:17 CST)
�nnn ` I
Notary Public
STATE OF TEXAS
COUNTY OF TARRANT §
before me on they ►day of mWr,2020 b James .
This instrument was acknowledged _ y Al oVe Y
Finley, on behalf of that entity.
i
wun,
'A;MM", SHANNON THOMPSON
`0 :�c Notary Public,State of Texas y� 07—
Comm. Expires 08.16-2021 �
�: of Notary Public
."o lilt � Notary ID 129526994 y
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the K+'" day of NDvexbW , 2020, by
Charlotte Finley, on behalf of that entity.
i
�' 11111la,, SHANNON THOMPSON
;o��" U°e Notary Public,State of Texas jh
=�+. ! Comm.Expires 08-16-2021
�i�F0i1`�``� Notary ID 129626994 Notary Public
�111M
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10/13/2020 M&C Review
Official site of the City of Fort Worth,Texas
RTWORTH
CITY COUNCIL AGENDA FO�",, ,,,��
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COUNCIL ACTION: Approved on 11/8/2016
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DATE: 11/8/2016 REFERENCE NO.: L-15964 LOG NAME: 21LAKESALES
CODE: L TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT: Authorize Contract for Sale with Current Residential Lessees of City-Owned Lake Worth
Lease Addition Lots for Fair Market Value and Authorize Contemporaneous Lease
Amendment to Provide for a Shorter Term and the Disposition of Improvements Upon
Expiration (COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager or his designee to:
1. Enter into a Contract for Sale with current residential lessees of City fee-owned Lake Worth Lease
Addition platted residential lots for a sales price that is fair market value as determined by an
appraisal by a certified appraiser; and
2. Enter into a Lease Amendment, contemporaneously with the Contract for Sale, with current
residential lessees of City fee-owned Lake Worth Lease Addition lots to amend the lease to provide
for a shorter term and the disposition of the improvements upon expiration.
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DISCUSSION:
In 2000, the City of Fort Worth mailed letters to Lake Worth Lease Addition lessees of record offering
an option to purchase the land if the leased lot met the specified conditions of(1)their lot(s) being
platted and (2) connection to either municipal water or sewer. Multiple lots could not be platted at that
time and the lessees of those properties were never offered the option to purchase due to
deficiencies associated with the property which caused non-compliance with platting requirements.
Additionally, some of the lessees on properties that met the conditions of the City's offer for the option
to purchase did not enter into the Purchase Option Agreement with the City or lost the option due to
not adhering to the option Agreement conditions.
Lessees of platted and un-platted residential City-owned Lake Worth Lease Addition properties are
requesting to purchase the leased land on which they have put improvements. The current residential
leases expire in 2032 and per the lease terms the City is required to purchase improvements at fair
market value at that time. The current residential Lake Worth Lease Addition lease terms do not
authorize the sale of the land to the current lessee or the extension of the lease.
This Mayor and Council Communication will provide for current lessees of residential City-owned lots
in the Lake Worth Lease Addition whose lots meet platting conditions, and who comply with the
conditions outlined below to be eligible to purchase their leased lot from the City at the fair market j
value determined at time of the purchase.
Conditions of Purchase:
Property must be platted at the expense of the lessee.
Lessee must hire an approved appraiser to obtain a fair market value appraisal of the land to be
conveyed.
Lessee must execute a Lease Amendment that provides for a lease termination date that Is the
earlier of (i) closing on the purchase of the property or (Ii) 18 months after the date of the
amendment at which time the Improvements would become property of the City.
Lessee must execute a Purchase and Sale Agreement contemporaneously with the Lease
Amendment requiring a closing date of no more than 18 months from the date of execution.
nnne fnrfwnrfhfevnc nnv/rnnnril nnrkaf/mr. rPvlaw_acn?III=22991&cnunoiidale=11/8/2016 1/2
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10/13/2020 M&C Review
All revenue from the sale of the land will be deposited in the Lake Worth Trust Fund to be used for
capital projects around the lake as approved by the Property Management Director.
This property is located in the COUNCIL DISTRICT 7, Mapsco 44, 45, 46, 58 and 59.
This M&C does not request approval of a contract with a business entity. However, if the 1295 form is
required, it will be provided by the lessee at the time of contract execution.
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FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that Property Management Department will be responsible for the
collection and deposit of funds.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
Submitted for City Manager's Office by: Jay Chapa (5804)
Originating Department Head: Steve Cooke (5134)
o Lester England (8053)
Additional Contact:
Jean Petr (8367)
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ATTACHMENTS
LAKEWORTH RESIDENTIAL LEASES 8x11.pdf
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anos.fortworthtexas.00v/councll aacket/mc review.asq?ID=22991&counclidate=11/8/2016 2/2