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HomeMy WebLinkAboutContract 55601Secretary Contract # 55601 CONTRACT OF SALE AND PURCHASE (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 Mary Kathleen Rachele ("Purchaser") as of April 14, 2021 ("Effective Date"). RECITALS Seller is the owner of the real property only (exclusive of improvements) located at 9886 Lake Haven Circle (the Property"), as shown and more particularly described on the attached Exhibit "A", incoiporated herein for all purposes. 2. Seller and Pm•chaser (as successor-in-interest to original lessee) are parties to a ground lease for the Property dated February l, 1982, as amended by a lease amendment dated October 25, 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 In consideration of the mutual covenants, representations, wailanties 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. A�reement 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 reseived to Seller (or have previously been reserved by Seller's predecessor in title), and such resetvation is hereby approved for all putposes: all right, title, and interest in and 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 au•craft. Purchaser hereby releases Seller, its officers, agents and employees fiom Purchase Contract 9886 Lake Haven Circle �FFICIAL RECORD CITY SECRETARY FT. WORTH, TX any and all claim and liability resulting from the noise, vibration, fumes, dust fuel, electromagnetic 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. (� Pursuant to City of Fort Worth Code of Ordinances Section 35-3, Purchaser agrees to connect to water and 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 ptuchase price ("Purchase Price") for the Property, payable by Purchaser to Seller in cash at Closing (defined below), is Forty Five thousand and 00/100 dollars ($45,000.00). 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 Robert Omweri, dated January 10, 2019, Seller has deternuned that the Purchase Price reflects the current fair market value of the Property. Section 3. Title Commitment and Survey. (a) Within ten (10) 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, reseivations, 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 ten (10) 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 cun ent on-the-ground staked sutvey perfoi�rned by a registered public surveyor or engineer satisfactory to Purchaser and Title Company. The Survey shall (i) be certiiied 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 Suiveyor'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 9886 Lake Haven Circle pg. 2 (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 three (3) 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 deiined below), and, upon such termination, neither party hereto shall have any further rights or obligations; or (ii) to waive the Objections and consLurunate 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 TERIVIINATION RIGHT HERETN WILL BE A DEFAULT BY LESSEE UNDER THE LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO THE TERlVIINATION 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, WARR.ANTIES, 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, 117AI�tKFTABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF Purchase Contract 9886 Lake Haven Circle pg. 3 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, 5TATEMENTS, 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 EXPRE5S 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 H�tMi,ESS AND RELEASES SELLER FROM ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY Purchase Contract 9886 Lake Haven Circle pg. 4 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 TRAN5ACTION 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 PURCAASER 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 rislc, 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 Properry 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 Contin�encies. DELETED BY AGREEMENT OF THE PARTIES. Section 9. Closin�. (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 Apri122, 2021. 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 acicnowledged 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 i•ecord or not; containing (A) reservations pursuant to Section 1(c), (d) and (e); (B) the following statement as required by Local Govei�unent Code 272.001(h), Purchase Contract 9886 Lake Haven Circle pg. 5 "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. (2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be delivered to Seller through the Title Company a certified checic 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. A�ents. 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 given, (ii) delivered in person at the Closing (if that pai�ty is present at the Closing), (iii) placed in Purchase Contract 9886 Lake Haven Circle pg. 6 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 speci�ed below. (b) The address of Seller under this Contract is: City of Fort Worth Property Management Department Attn: Nita Shinsky 900 Monroe Street, Suite 400 Fort Worth, Texas 76102 With a copy to: City of Fort Worth City Attorney's Office Attn: Leann Guzman 200 Texas Street Fort Worth, Texas 76102 (c) The address of Purchaser under this Contract is: Mary Kathleen Rachele 9886 Lake Haven Circle Fort Worth, TX 76135 (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 consuinmate 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 perfoi7n Seller's obligations under this Contract, then Seller, as Seller's sole and exclusive remedy, shall have the right to teiminate 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 1N 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 9886 Lake Haven Circle pg. 7 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. Assi�ns. 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. Section 16. Time of the Essence. It is expressly agreed that time is of the essence with respect to this Contract. Section 17. Takin� Prior to Closin�. 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 perfortnable 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 Tai�ant County, Texas if venue is legally proper in that county. Section 21. Severabilitv. If any provision of this Contract is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had riever been contained herein. Section 22. Business Days. If the Closing or the day for perfortnance of any act required under this Cont�•act 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 counterpa.rts is to be deemed an original for all purposes, and all such counterparts shall, collectively, constitute one agreement, but, in making Purchase Contract 9886 Lake Haven Circle 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: CITY OF FORT WORTH, TEXAS Byf•na Burghdoff pr 17, 2021 11:59 CDT) Dana Burghdoff, Assistant City Manager Date: {17.)0.:21 ATTEST: Mary Kayser City Secretary M&C: L-15964 1295: NIA APPROVED AS TO LEGALITY AND FORM Matthew Murray, Assistant City Attorney CONTRACT MANAGER PURCHASER By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all perf01mance and reporting requirements. -;-l-t�,,,;£'.� t� Name: Nita Shinsky Title: Land Agent Purchase Contract 9886 Lake Haven Circle pg.9 . �y �''1,;;' Exhibit ��A�� � , �, ��'�"�� r�:i V��S�VR�!'►Ri C �"' , `� a s� �n�t'TRAGTNO, �o���� . �► ..� ,��' �`� 1 ' 4 '.`�C �'?i ,`-� -�,,��, , � 1c�,.� w+��:m�r x�s�ErtT� x���.sE �,����r.t�r Th�is L�KE WOR�'H RF,�IDF1V�'IAL LE}i6E AC�REEMFNT ("Lease") is ehtezed into by and between Robert Omweri("Tenant") �nd CIry o�Fort Worth, a Texas home rule munioipal corporation ("Landlord"). WHE�A�, Landlbid ente�'sd into a ground lease. ("Lease") �n Febivary 1. 1982 with.�; onnie ��. Stephens. Sr. an�l Mariqn M. Ste�h�s, #tie origfnal Tenant�uu$er t6� Lease Ag;eemet�t for prQperky loc�ed �� �988.6 iake �Ha'van .Cirole, 'wlfli A�legal_ desetiption mor� partrcU�arly �desari�ed as I�ot 111�,, B1oak 25 Lake Worfh Leases Addition Boit Worth Tarrant �ount� TX�(the "L�ase� Pr�nnise,�"), said Lease attachcd, tterete as Bxhibft `•`z�"; w�iER.��S; tfie I�,easew�s tei�'inated b� t�pex�tio�n o�IavG+ tt�nugh a baakrqpt�y p�roeee:din� by ihe pr�Vious bv,tnar pf t1i� imptovennents lo�ated qn the T.eased Premises; and �.Ei�REA$, the currant owt��' of tl�e improvements lqo�ted, on tke T.�aaseii Premis��S obt&in�r� the irimpiro�v�tnents �rough a purcha�e sulisequ�nt to the bankruptcy withbut ltnowledge that the ground leasa witbi the City hazl been �ermii��fed; . V�?HEREAS, the�parties desire to e�tter 'intb tliis. lease to prov.ide tlie Tercatit vrvith the l�gal rlght to ace�ss ttre ina�rovemerits o�w,ned by Tenant and to ocoup�+ the� Leased �P�em:ises; NQW TI�REF01tE,. in�considexa�ion of"th� mutual agreem,enis herel,u and pther good and valugbl� o.onsideration, •the pacties agree as follows: 1. Term. La�ii.lord Ieases to �'eiiatit ai�id Tenant �eases ffrom Lazadlord tlie I�eas.ed Prerr�is.es an the terms� and --., conditions set for�ti herein. The term� af the �.ease is sliall be for eighteen (18) month� f"L��se Terin"), Com�iencing .��—�� �'y� L�l �d expiring on � ��a--- ; 2021. 2. Gbn�fii��a:tion. T�nant shgll p�� rEnt to fhe City of Fart Worth �or the LeasEd Prem.ises iri tfie sum o£�g;40U.00 ("L�ase k'ee") £orsaxd rent payabla in 1.8 equai installxnen�,s of �3UO.U0 du� on tEi� f�st --•— •p��"�Ch i#ion�. Pay:tnent 7n �tvll must be;ni�d��to City of Fo�t V�orkh dn the� �rs�t qf aaCh �ionth, '�u�less: s�tcli 8ay is ou $ vV��eltehd Qr holiday b� whic& tlie bffioes bfthe Citj� of,�ort W6rth•are ,o�osed; i�n �vhtch aas� payment �tnus� be rnar�e tFie� follawfing busin�ss day, OIFFICIAI RECC�RD �97V SECRETARY �T. WOR�'H, Tx 3. Permitted Use. Tenarit shall Wse ttie Le$sed Premises for th� sole purpose o� Xesidential uses relat�d to the residential improvemenfs currentl� e�cisting on the Leased Premis�s at tha commencement of this Lease. 4. ��epira�ion of Y�ease. A. Any buildir�gs, impr.ovements, additions, alteratlons, and fIxtures (except furniture and t�ade �fixtur�s) �onstructed; pl�ced, nr maintained Qn ��y part of th� Lea,sed Pr�mises during the lease term are coin"sidered part� of .the teal prope�ty Qf the L'andloxd aud must rem�in ori the Leased Premises and become Lan�dlord's property when the Lease terminates. B. Except wh�n the Leas� fermina�es through � s�.le .of the Leaseii Premises to Tenant, `�enant shall. remove all personal property, furniture, macliin�ry, or equipment in, under, or on the Leased Premises befoxe the�terminat�on d�te. Be�bre the L,ease terminates, Tenant must repair any damage to any buildings or 'improvements on the T�eased Premis�s resulting from the removal. Any such items not removed by the lease termination date will become Landlord's property on that date, 5. Ownershin bf Impro�Vements. Upon expiration of this Lease through the closing of the sale o.f the Leased Premises under the Purchase and Sale Agreem�ent, Tenant shall retain aLl right, title, and znterest in the improvements op the Leased Premises; howe�ver, upon th� expiration of th�s Lease without a closing of the sale of the Le�sed Premises�under the Purchase �.nd Sale Agreement, �ll right, title, and interest in the improvennents on the Leased Pramises shall vest in Landlord without furthar pa,ynnent by Landlord to Tenaat for t�e improvements, and Tenant shall n.ot have any right to enter upon the Leased Premises. 6. Aeceatance of Leased Prefiises. Tenant covenants and agCees to accept tha �,eased Premis�s in their present condition, finds them suitable and in good condition for the purposes intended; and further agrees that it is thoroughly fami.liar With such condition by reason oia personal inspeotion and does not rely on any represen�ations by Landtord �s to th� co�►di#ion of the premises Qr their suitability for the purposes in,tended. 7. Inspe�tion bv Landlord. Upon not Iass than. 48 hours prior noti�e and iri a manner so as to not uz�reasbi�ably interfere with the use of the Leased Premis�s by Tenacit, Landlord or its authorLzEd �gen'ts may �nt�r qpon the L�ased Preri�xs�; �c5z' ahy �urpose bopn�.qte,d vvith #he p�r�orcti���e o� Laridlord or T�nant's obligations hereunder, In order to inspect the performance of Tenant'•s qbligatfb�►s uf�dei`th�s A�r�err�er�t; Qr ta inspeet �safety complian,�e pr ir� order tq deterniit�e cornplianc� viiith all appliCabl� la�vs. Iti �a�a of an enc�rgency or if necess�.ty t,� �nsure ths health, s�fet� antl we]`F�re o� t.h[e pub�lic, Lancilprd myay enter upon the Leased Pre:mi�ses at any titne and wifh�out notice, buk ln � inann�r sQ �s to tipt tli�r.easonably it�texfere with th� rights. Qf Teaant tQ the ve&sed Px�rnises. Thls shall not consf�tu#e � waiver by �,andlord of fhe per�ormance o�` its govert�mental functions and Te�arit �agreas th�t x� .#ha per•,fQxcnance of its goXemmental funotions, representa:tiyes of ft�e Ci�y of F6rt V�'oxth maq ent�r ontQ the Le�sed premises at any.time that ttiey'wauld othe�wase: be alleiwed. 8. AssiQn:xtt�n't. Tenan� m�y assign thts .A.�re�ement to an ind�yidual or individuals, upon priar wr�ftan approval tiy Landlord, which tila�+ b.e watkiheld for a�y r�asoi�. An.y attempti to assigr� without'appr.oval will be vof d, and any such attempt s�all �ause immediate ternnination of this A,greeznent. pr.ior to propar notiEe.being givan and �,r�rited by the City, Tenant must be current o�n all rent and impravencient tax�s owed� �� assigning tFiis �ease the assignee mit�t� expressly acGept; assurne, a�d agrea to �erfoi7ri all terms, .00nditions �rld limitations to be ke.�t and. performed by Tenant under this Lease. Q, Inde�uiAi�.v (a) TBI�TANT SHALL AND DO�� AGREE TO. INDENINIFY, P�OTECT,. I)E�END AND HOLD H�.RML$�S CI'�Y, �ITX'S OFF'ICERS, AGENTS, SERVANTS; AND �PLOY�ES (COT:LECTIVELY, "INDE11rINIT��S") FOR, FROM AND A�AINST AI�Y AND ,ALL CLAYMS, LTA.BILITIES, DAMt1GES, LOSSES. LIENS, CA�fJS�S O� ACTION, SI7ITS; NDGMENTS A,IVA EXPENSES, (INCLUDIN+G REAS�NABLE COi7R.T �QSTS, REASONABLL ATTaRNE�S' FEES AND �tEASONABLE C�STS OF TNVESTIC7t�TI0I�, �F ANY NATC7RE, KIN,D OR .DES�RIPTION TO TH$ ESCTEN'�' �AItIS�NC� OR .ALLECrED TO t�R:iS� BY R�A�ON 4F TNJU�tY TO OR 15EA'TI� OF ANX PE�t��N QR D�.MA.,GE TO Q� LOSS OF F'�.OP�RTY (1) RELATING 'T'O THE USE QR OCCUl�AIV�CY 0£ THL� LE.A�ED PREMTS�S B�' T'ENt�'�IT, IT� EIt�PLpYEES, A�L�'�� ANp TENA�IT� OR (�) BY REA�ON OF ANY OT�iLR CLAI11� �J�T�OEy� OF �s.�TI' PE�SQN OR P,A:�,TY O�C�SIONED 4R A'L.LEGED '�b T3� OCCAS�4NED B'� AI�II'� AGT O� bIv�ISSION QI� THE .P1�RT OF T�NAN"T OR ANY T'LN�NT, EIviPZOY��, D1ItECTbR, .OFFi�ER, �LRVANT, OR ��f�T�:2ACTQR OF T.�N.�,NT �QR (3) BY :ANI' B�EACH, 'V�OLATION OR. �NQN�'E�2FOR.�VIA.I�CE p.� ANY COV�NAi�'T 0� �TEN�AN'T I7NbE& TI�I� AGRE�MEN't' (COLLECTTVELX, "LIABILIT.IE�"), EXCE�T TO THS EX�ENT ,A.RiSIrjG OIJT OF OR RESL�I,TING F�QM THE NEGLIGE�TC� pR V�TLLFUL MI��O�I?I,JCT O� ,ANY �N�EMNI�.. TF �NY AGTION OR PROCE�DTIV'C�r �HAY�L BE SROII�'i�iT� BY� OR �A.(3AiNST .1�NY �ND�EMNIT.EL IN COIVNECTId�.V WITH ANI' SUC�T �LIABILITY �R CLAIl1�; TETt:ANT , p�T 1VOTIC.� F�QM CITY, SI3ALL DEFEnTD SUCH ACTION QR P�tOC�EEDI�iGx A.T TENAN`P'�. E�PF.�iSE, BY OR �QUG�T A`�'TORN�YS I�EA:�QI�',AB�.Y SATIS��A.CTaR.Y TO CTTY. THE PRqVI�IaNS .OF THI� FARAC,rR�PH �I�ALL APPLI'' TC� AL,L ACT�V�TIES OF TEN�NT WI�T3 RES�'ECT TO T�E USE .Al� bCCLJPANCY OF THE L�AS�D PRFMISES, Wi3E�ER OGC�CtRRING B�FORE OR A:FTER THE C�7MM�N�EMENT D,�TE O� T,HI.? LIGENSE TEI�iVI �3:ND B�FC�RE OR .AFTE� TH� TERh�IlNATIbN OF THIS AQREENI�IVT. THI� IND��IV.II�TIFICAfitON SHALL NQT BE LII�T�D TO DAIvlAGES, COMPL�'�ATION OR BLNEFrT51 PAYAHLE UNDER INSUR.AIVCE POLICIEB, WO�tKERS'� �011�ENSATTp�1 ACTS, D�SABILITY gENEFIT- AC�'S OR OTHER E1ViPLO�ES' BENEFT'T AG�TS. (b) IT I� AC`rR�ED WITH �Es�'ECT TO ANY LEGAL LIMITAT'IONS NOW OR HBREAFTER �N �FEE�T AND A��BeTTNG TI-� VALIDIT'Y QR ENFORCEABILTTY OF THE T1Vl�EMNIFICATTL�N fIBLIGA.T.�ON IJNDER T1�iI� SEC�'ION 9, SUCH L�pAL L,IMIT,A'I'�IQN$ AR� lV1AD� A. PART OF TT� INDLI�INIFICATION OBLIG=AZiQN .�1ND SHAL.L Q.PERATE TO AMB1yI� T'I� II�TDEMh1IFICATION O�LIGA'�TON TO THE 1VIIN�ML•JM EXTENT NEC�-SSARY TO BRiNG THE PROVISION INTb CONFORMITY WITH THE REQUIREMENTS. OF SUC�I LIMTTATiON�, AND AS SO �MOT7TFIEb, THE INDEMIVIFICA�'IDN OBLTGATION SHALL CONmINIJE I�1 FULL FORCE AND �FFECT. 10. Waiver of..Liab'ilitv. AI��, VEHICLFS AND ALL PER,SONAY. PROFETtTY WITHIN VEHICLES USING TI�E PRENIISES; WHE'�H�R �LTRSUANT TQ TFIIS AGI�E�ME�TT OR OTT�RWISE SHALL B;�� AT THE RIS�K QF TENAN`I' ONLY, ANI� N'O IND�M�iI`I`EE5 SH�kLL BE LIABLE FbRANY' LOSS OR THEFT ClF O� DAMA�E TO PT�OPERTY OF TBNANT,.ZTS EMPLO'YEES, AGEIVTS; PA'�0�1�, IN'V"ITEE,: OR TQ• OTHERS, REGARDL.ESS OF WHETHER SLiCI3 �'R�P���.TY IS EN'I'�USTED TO BItiiPLOI��� OF CITY 0� �t1C�i LO�S OR D.�MA,GE IS O.C�A�,�IONED HY CASU.ALTY, T��EF'I' �O$ A. NY OTI�lt eAiJSE OF WHATaQEVER NATURE, UNLESS D[JE ll�i WHOLE QYt IN� PART T`q TI-�� NEGLICrENCE QF ANY IIV]3L1VII�f�TE�. 11..Taices, Insuaraace, Utili�Yes. Tenant agrees to b� respo�xsible for the payment of�al� ufilitias that come dna. ar�d payable during th.e term Tenwt occupies the Le�sed Frerriises. .t�,dditionally, �'er���t agrees to p�y �11 t�Xes as they ��.oiiie d�te. Tena�t shall insure the Taeased �+cetnises iu a�i�ounts sufficienf tt� fulfill Its �obligations in this Lease�, and..shall p�y al� such fnsurance premiums as required so th��tf�eie �s no I�p$� insur�in�e, �.�. Liens and Mortsa �.s; Te�n�t s�a�� �iot perrnit any lease�i�1� ox other financang that may eincuinber Tenant'� rights under this Lease wit)�out�fizst obt�ining the .prior written eonsent�of Landlord. Tenant wll1 keep the Leased Premises :free and alear of all constxuotion, meehan�c's, mater��lman's, laborer's an¢ s�pplier's. l�ens, resulting from cansteu�tion �t�ne by Qr for Ter�an.Z. 'I�e interest of L�dlr�rd jri the Leased Feemises shall .ribt ba .suhject to l�iens for improvements znade by Tanant. Any llen �I�d . by any contra�tor, materialma�, labqr�r br �sup��ier performing work for �'enaqt �sl�a:ll atta�h only to Tenant's irite�est in fhe Leased Pre�i�ises. Tehan� a�rees to indemtfI£y, defend and hoid haeml�ss Landlord from atid agttinst any and all costs and lia�ilities (including attorneys' fees and.ex�aenses) a�d any and all co�pstr�ctidn, mechanic`S, ma:terialr�an's; �aboxer's c�z' suppli�r•'s liens �arisi�g out ��or pertai�ing to any improve�ents or �cotistiniotion dohe by Tenant. If .�ny eotl�t�uadon,. inechanic.'s, mat�ri.alman's, laborer's or sup�iiier'S lien is ever �la�med, £ixed or assert�d ag.ainst the Leased Pr�xtai�es in co�nection with any s►i�h T�nant work; Tei�ant shall, within 10 da.ys a�er receipt b.y Tenant of notice of �suah Iian, disoharge same as .a lian elther by payment or b�y �iosting of any bond as p'e�rmitt�d by law. �f Tanant s��ll fai� to discharge an.y such lien, whetli�t� valid or not, vvIthin 10 �ays af�ex receipt of notlFe �rom Landlord, Landlord shall have tha right, but not the. o.bligatlon, to discharge suck� llen on behalf of Tenant and :all costs and expenses lncurrad by Landlord associated with the diseharg� of tli� lie�a, incl�dit�g, wiltl�qut limitatio�; atto�neys' f�es, shali constitute Additcbnal Rent heretin�e�' �nd�sh�a11 b�.imm�,diately tiue .�nd pa�able by Tenant. ].3. Su�cessor.. In th� e�ent bf de�th of a� Tei��nt, Teu�t's sctcc�ssors .a,riri e�,tate. shall sucqe�d to Tgn�:nt'� ix�te#�st u�dei #hi�. Leas�, a�d tlios�. entitled by law or �ueGeed to t�e Tenarit's Pr[terest.in the Zease �hall ebnttntte to enjoy the. rights �and bene##Cs hereundar :o�the deceasecl Tenant. In the ev�nt tbiat ttie Tet�ant oz` his Assigrie� is adj�dicated �a bankrup� said� �e.as� rn.ay !ie assigried as prov�ded iri Section $�, and any Assignee:shal.� as�ume t��.du�ies andl�abilities a� set but. 14. Notice..�4,ny notice her.eunder tnust be in writing, Notica �epositect .or. sent by nationally recognized ov'ernigk�t courier sexV���, such as, bitt ziot li�ited to, F�de�ai EXgress, b� ��rtified tnail with r,eZuin cec�ipt requested. For pwtposes of notice, the address.es of the parfi`es shall, unless changed :as her�inaftsr pxoVid�t�, bc as fo�lbws: Ta Landlordc ��ty d� Fort Wbrth Lease Management Prope�.y �ana�et�iai�t Depattment 900 Monroe, Suite 4QQ Fort'VJarth,TX 'Ib102 Wit�t-aeopy. �oc , City Attorney �fiy- of �'ort V{�orkh 30p Texas Stre�t Fort� Wo.rth, `TX 7f:1U2 T�o Tenanf: R(ib.ert OmyVari. PO.BO� 6'10354 Da41as, TX, 7��67 �i!ith a copy� to: � SIGNATURES APPFAR Ohf FOLLO�VING PA�E It� witness whereof, the�parties hereto have caused #his�T�ease to be e�e4ut�d'�s th�:d&y atid year .first above�s�t tbi�h. I�ANDLORD: D.ate.,� �U�VT�A.G�T �OI�FZ.I�AIYCE �IA1�TA;GER By signin�, � acl�.oWl�dge th�t I a.m the per�on xespo�sible for the moriitoring and �administiration of this c.onixact, iixoluding ensyrin� al� p�rformance �and repurting requirements. '��v�N7�: �Q6�, -t.��1�'�� �obert Omweri , l6 . :Date:l0/.16/2019 CTTY U�' �'.C1 x'GVOR,T�H By; �By: �.�vin:C�'; � . Interim Assistant City Tvianager � .. N e: Ricky Salazar � �'itle: St. Land Agent Daie: lV���'2��� AkPRO D AS TO k'ORM AND LE(�ALITY: �y. Learin Guzman S.epibr Assistant City Attomey Date: �U 12-3 / l q . ATT��T: By� .ary K yse City Secretary Date; UVG �6�� Form 1�95: Cantract Authorization• M�C: ��ti� � 10�15� I�1 ; �--... .,� 5 .. 's'�'y �U' _� 1 � y ,7�yE �'���'��� J''I��/ • n__ � CIFFICBAL ItE��RD Ci7Y �ECRETARY �T. WUR7H, T'X STATE OF 'T,E�AS � CQUNTY QF TA�tR.A'NT � B�F�S� ME, th� uridersigned authorityi personall3� app�ared K�v� �C'iun. Irite�im Assistant Ci M�nager; knnwta �o r�e to be the pexsqn �n�i of�icer whose .�ame is subscribed to th� fbregb�n,g Ag��.ement, and �:clatovvl�dged to m� fki�t fhe s�zne v��s th� a�t pf tl�e City of Fart Wot:th, a�,o�e-�u1e co�ppr.atior�, and that ��/she e�tecutec� the clocume.nt •as t�e �aat af said carpor�tion �5r the purpose� and c�nsider�tion e�pressed therein arid in the �apacaty �ted, GIV$N UI�llER MY HANJD .AND SEAL �F OFFIC� this o�. S�� day of I( / �d��,] , 20� . � _.4,a'1ei� �IA�tIA.3, SANCHEZ �,{�� '��'`:� My Nol�ry 10 �'2�56490 ' ,�?� Explres Qecemh�r �IS; 2�2� No Public .,:�o� „ . �STATE O� T��AS § COUNTY OF TAR.R:ANT § SEFORE 1V�, �he�undexsign�d authority, personally appeared .Robert Omweri; lrnown Yo. m:e to be the p�rson whose n�tne. is .s.ubscribed to the forego�ng LOase; at�d acicnowledged to me that fhe sa�ne was his act, and that he executed the document for the purposes and consideration expressed tfierein. � Q�N UNDER MY H�TD- A3� $EAL OF OTFICE this � da.y of �G�'o��f ,20�� —� o{ . ,� RICARDQ SALA�AR II ft ,�# Notary Pubito-Sta� ofTexa$ Notsry ID #128185792 ''`� Commisslon E�. F�B. 2b, 2022 . �� No.tary Public t�FF9CPA9. �E��Q�� CB'�"X SECRE'�qRY � oJVORYFI, i� --�--�------�--_ 10117/�p19 City of Fort Worth - Fllb #; M&C 1&0239 Sign In Home Le�islation Calendar CPty Counc(I Departments �� �hare fl R 1 1� AYe� � 61 D�#ails �ftep.o►t$ �ii2 #: M8iG 19=02�� Ver�lon: 1 Naltne: T�pe: Land Cotisertt �tatus: RasSed �il� ereaked: �.0�10/2ai.�: In �co�frql�� ELT1'`�QUN.eIL �n �g�nd�: iQ[1S/2R1� Fir��[ �c�fo�t: ib/15/201� Authp.rize �xecution of a Groun� Lease with Robert Omw;e�j for �ty L.and Un�e:r �RestderlCial litle: Ir�lpr4vements Own�d by Rob�rC (�muveri at �886 L.ake yave►t, Fo.rt Wor,th, Texas in the Arr�dutit of �300 per N(6nth. (GC�UNCYL f�'1�STRICT' 7) �ktfiaehnlents: 1. M8iC 54=0239,. �, 9886 Lake Haven Site Nfa�� Histary (1) Text 1.record C�rowp Export Date Ver, "Ac'tion By Actlon �.0�15/�019 • 1 Ci,I.Y COUN�IL, Approved Result Adlo.n Qetails Meetillg Details ' Video Action details Meeting..details N�t.aVailable i , ' � i i j � i hitps;/ffartWorthgov.legletar.�cbmlL•egislBtlonD&ialCaspx710�4.16�9�78GU1f5=1 b07C68F,dF7B�-d��8B�9B4-7040DFd905F9 1/1 Clty of Fort Workh, Texas Mayor an� Council Communica�tion DATE: 10/15/1.9 M&Q FILE NUMBER: M$�C 19-p239 LOG NAIVIE; 21 9886 LAKE HAVEN LEASE SUBJEC7 Authorjze ExQcution of a Groun� Lease with Ro6ert Omwerl•for Cfty Land Under Residential Improvements Owned by Robe�t Omweri at 9886 Lake Havetl, Fort Worth, Tex�s (n the Amount of $30d per Monlh, (COUNCIL DISTRi�T'n ���Iu_�� ►' ' --� �� It f� recommeqded iH�f the Cfty Coundf aUthorize Ut8 execution of � lease agreemerit wixh Robert OmWeri for City property'locafed at 888G Lake Ha�en, Fort Worth, Texas 76108 on which Is located a residential home owned by Roberf Omweri at a monthly rent of $30Q. DISCi1S810N: Ori May 2, 2018, tha Cityof Fort Warth received notice that the original lease between fhe G(ty and the Lessee nf �ha City-owned property at 9886 Lake HaVen Was tetm(nated by operation of law as a te�ult of a 6ankruptcy p�oeeeding invblvirig ihe prevloug owner ofthe residential (mproVements located at 9886 Lake Haven. Robert Omweri purchased the improvements at a sale resulting from the bankruptcy without knowledge that the ground lease with the Gity had be.en terrninated; As a re�uft, Mr. omweri has no long-term legal rightto access.the.larid on which his tmprovements are located. To resalve th.e legal access Issues reSulUng from the sale of the fmprovements due to the bankrypkcy, Staff recommends that ihe Clty enter (nto an tieighteen month leas� at� current market value t� provrde Mr, Omweri w(th access and the a6ility to ocCupy the house on Cfty properiy. Mr. Omweri wlll be eligibl�'to purchase the leased land in accordance w(th curr.eht Lake Worth Sales Program approved by Council on Novem6er 8, 201fi Zfv(&G L-15964): No renewals or extensions are provid�d for in this lease. • The Lease TQrms are as follows� � Term Length: Elghteen (1 Q) month term. • Base rent: PHmary term is $�00 p�r mohth 7his agreement is expected to contribute lease revenues of approxtmately �5,400.00 for the eighteen month term to th� Generel Fund, Lake Worih Leases. � This property IS located in COUtVCiL DISTRICT 7. A Form 1295 is not required be'cause: This M&C does not request approvel Qf a contractwith a bu§iness entity. FISCAL INFORMATION / CERTIF�CATION: Ttie Dir2ctor of Finance cert(fle� that the Propeity Managem�nt DApartmen� is Fesponslble f6r the�collection and deposlt of lease reVenues dtie. under the terms of thls� lease. Submitted for Ciky Manager"s Offfce �: Kevl� Gu�tn 2015 Orfginating Buslriess Unit Head: RogerVenables 6334 Jean Petr 8967 Additiorial Informatlon Contact: Ricky Salaz�r 8053 10/13/2020 CITY COUNCIL AGENDA Official site of the City of Fort Worth, Texas FoR�� COUNCIL ACTION: Approved on 11/8/2016 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. 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 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. M&C Review apps.fortworthtexas.gov/council_packeUmc_review.asp? ID=22991 &councildate=11 /8/2016 1 /2 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. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that Property Management Department will be responsible for the collection and deposit of funds. Fund Department Account Project Program Activity Budget Reference # ID ID Year (Chartfield 2 Fund Department Account Project Program Activity Budget Reference ID ID Year (Chartfield Submitted for City Manager's Office by_ Originating Department Head: Jay Chapa (5804) Steve Cooke (5134) Amount ount Additional Information Contact: Lester England (8053) Jean Petr (8367) ATTACHMENTS LAKEWORTH RESIDENTIAL LEASES 8x11.pdf apps.fortworthtexas.gov/council_packeUmc_review.asp?ID=22991 &councildate=11 /8/2016 2/2