HomeMy WebLinkAboutContract 44521 (3)_ :y i, 'i
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NEGOTIATED SETTLEMENT AGREEMENT
This Settlement Agreement is between the City of Fort Worth, ("City") by its
authorized Assistant City Manager, and United Riverside Rebuilding Corporation
("LJRRC").
WHEREAS, in 2006 the City awarded federal funds to LTRRC for the acquisition
of lots and the construction of six homes to be sold to low and moderate income
families;
WHEREAS, IJRRC bought various lots with the federal funds and constructed
four single family homes;
WHEREAS, i1RRC sold one of the homes constructed to an ineligible buyet•, did
not provide the City with sufficient income documentation for the buyer of the second
constructed home and did not build homes on the remaining lots purchased with federal
funds. As a result, the City requested repayment of a portion of the federal funds
awarded to iJRRC;
WHEREAS, the City and i_TRRC agree that bona fide disputes and controversies
exist between the two parties;
WHEREAS, the City and URRC desire to compromise and settle any and all
claims and/or causes of action between the parties; and
WHEREAS, the City relied on I_7RRC's representations to
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Negotiated Settlement Ageement ��� C E I V E D J U N t���l��
NOW, THEREFORE, in consideration of the recitals set forth above, the mutual
promises and agreements made herein, and other valuable consideration, the receipt and
sufficiency of which is acknowledged, the City and URRC agree:
1. Mutual Release.
A. Release b,Y City: For and in consideration of the recitals set forth above
and the actions to be taken under the terms of this Settlement Agreement as described
below, the City does hereby RELEASE, ACQLTIT, and FOREVER DISCIIARGE
IJRRC's agents, servants, employees, executors, heirs, and assigns, and all persons,
natural or corporate, in privity with it or any of said persons from any and all claims,
demands, or causes of action of any kind whatsoever, at common law, statutory, or
otherwise, which the City has now, known or unknown, existing, directly or indirectly
attributable to the circumstances made the basis of the above entitled and numbered
lawsuit or in connection with the contracts with the City that are the subject of this
lawsuit, it being intended by the Settlement Agreement to RELEASE, ACQUIT, and
FOREVER DISCHARGE all claims of any kind which the City might have against the
UIZRC that may be directly or indirectly attributable to the circumstances made the basis
of this lawsuit or in connection with the contracts with the City that are the subject of this
lawsuit, whether asserted in this lawsuit or in connection with the City's contracts with
IJRRC that are the subject of this lawsuit.
Each party is responsible for its own
attorneys' fees, costs, and expenses.
B. Release by URRC: For and in consideration of the recitals set forth above
and the actions to be taken under the terms of this Settlement Agreement as described
Negotiated Settlement Agreement
Page 2 of 7
below, IJIZRC does hereby RELEASE, ACQUIT, and FOREVER DISCHARGE the
City's agents, servants, employees, executors, heirs, and assigns, and all persons, natural
or corporate, in privity with it or any of said persons from any and all claims, demands, or
causes of action of any kind whatsoever, at common law, statutory, or otherwise, which
I_JRRC has now, known or unknown, existing, directly or indirectly attributable to the
circumstances made the basis of this lawsuit or in connection with the contracts that are
the subject of this litigation, it being intended by the Settlement Agreement to
RELEASE, ACQUIT, and FOREVER DISCHARGE all claims of any kind which LJRRC
that may be directly or indirectly attributable to the circumstances made the basis of this
lawsuit or in connection with the contracts with the City that are the subject of this
lawsuit, whether asserted in this lawsuit or in connection with the contracts with the City
that are the subject of this lawsuit. Each party is responsible for its own attorneys' fees,
costs, and expenses.
2. Consideration.
For and in consideration of the recitals and releases set forth above and other
provisions set forth below:
a. IJRRC agrees to deed to the City eight (8) properties, herei�after referred to
as the "Settlement Properties", listed below by special warranty deed (in the form
of the attached "E�ibit A"), including the mineral interests as well as surface
rights for each of the Settlement Properties. The Settlement Properties shall be
conveyed to the City free and clear of all liens and encumbrances other than City
Negotiated Settlement Agreement Page 3 of 7
code liens. The addresses for the Settlement Properties to be conveyed by the
IJRRC to the City are:
1.
2.
3.
4.
5.
6.
7.
8.
2624 LaSalle
2628 La Salle
2700 La Salle
2708 La Salle
2720 La Salle
1209 E. Robert
2805 Ennis
3013 Finley
All such properties being located in the City of Fort Worth, Tarrant County,
Texas.
URRC represents to the City thati URRC owns no other real estate interests
other than the above listed property and 2612 Chenault Street.
b. The URRC agrees to convey 2612 Chenault to United Riverside
Neighborhood Organization to be used as a Community Garden. If the
neighborhood organization is unable or unwilling to accept ownership of the
property for any reason, the URRC agrees to convey 2612 Chenault to the City
under the same terms and conditions listed in Paragraph 1 above and this property
shall be considered a Settlement Property.
c. URRC agrees to pay the City $�_ 0 in lieu of deeding 3021 E.
4�' to the City. URRC represents that its total cash assets do not exceed the cash
amount agreed to be paid herein to the City of Fort Worth.
Negotiated Settlement Agreement Page 4 of 7
d. i1RRC agrees to not deed any of the Settlement Properties except as
provided under this Settlement Agreement. Specifically, IJRRC agrees that it will
not convey the Settlement Properties to anyone or any entity other than the City
except as provided in this Settlement Agreement.
e. IJRRC agrees that it has passed the appropriate resolution required under
Texas law to enter into this Settlement Agreement and to convey all of its interests
in the Settlement Properties. URRC asserts that it is fully empowered to enter into
this Settlement Agreement and to convey the Settlement Properties.
f. City agrees to draft all deeds and pay for any title insurance, filing and
recordation fees, and any other expenses associated with the transfer of the
properties.
3. Parties Bound.
This Settlement Agreement shall be binding upon and inure to the benefit of the
parties to this Settlement Agreement and their heirs, executives, administrators, legal
representatives, successors, and assignees.
4. Representations.
The City has relied on the representations of URRC to reach this settlement. The
parties agree that these representations survive this settlement agreement.
5. Tegas Law to Apply.
This Settlement Agreement shall be construed under, and in accordance with, the
laws of the State of Texas, and all obligations of the parties created by this Settlement
Negotiated Settlement Agreement
Page 5 of 7
Agreement are performable in Tarrant County, Texas.
6. Le�al Construction.
If any of the provisions contained in this Settlement Agreement shall for any
reason be held to be invalid, illegal, or unenforceable, the invalidity, illegality, or
unenforceability shall not affect any other provision of the Settlement Agreement, and
this Settlement Agreement shall be construed as if the invalid, illegal, or unenforceable
provision had not been included in the Settlement Agreement.
7. Amendment.
No amendment, modification, or alteration of the terms of this Settlement
Agreement shall be binding unless it is in writing, dated subsequent to the date of this
Settlement Agreement, and duly executed by the City and URRC.
Executed and effective on
County, Texas.
day of April, 2013, at Fort Worth, Tarrant
UNITED RIVERSIDE REBUILDING
CORPORATIO� �`
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STATE OF TEXAS
COUNTY OF TARRANT
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BEFORE ME, the undersigned authority, Notary Public in and for the State of
Texas, on this day personally appeared R^' �„a �x'n'+�N�, known to me to be the person
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Negotiated Settlement Agreement Page 6 of 7
whose name is subscribed to the foregoing instrument, and acknowledged to me that he
executed the same for the purposes and consideration therein expressed, and in the
capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this � day of �,�013.
Notary Public in and
THE CITY OF FORT WORTH
APPROVED AS FORM AND LEGALITY:
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Christopher B. Mosley
Senior Assistant City Attorney
Negotiated Settlement Agreement
of Texas
SARAHJ•ODLE
MY COMMISSION EXPIRES
November 5, 2015
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By: Fernando Costa, Assi�it City Manager
SPECIAL WARRANTY DEED
DATE: May , 2013
GRANTOR: United Riverside Rebuilding Corporation, Inc., being one and the same entity whose name was
erroneously shown as United Riverside Re-Building Corp. in Volume 16006, Page 349, recorded in the deed records
of Tairant County, Texas
GRANTEE: City of Fort Worth
CONSIDERATION: Ten Dollars and and other good and valuable consideration.
PROPERTY (including any improvements):
RESERVATIONS FROM CONVEYANCE: None
Grantor, for the Consideration stated herein, grants, sells, and conveys to Grantee the Property, together
with all and singular the rights and appurtenances thereto in any way belonging, to have and to hold it to Grantee
and Grantee's heirs, successors, and assigns farever. Grantor binds Grantor and Grantor's heiis and successors to
warrant and forever defend all and singular the Property to Grantee and Grantee's heirs, successors, and assigns
against every person whomsoever lawfully claiming or to claim the same or any part thereof when the claim is by,
through, or under Grantor but not otherwise.
When the context requires, singular nouns and pronouns include the plural.
GRANTOR:
United Riverside Rebuilding Corporation, Inc.
Phyllis Allen, Acting Chairman
THE STATE OF TEXAS
COUNTY OF TARRANT
Before me, the undersigned authority, on this day personally appeared Phyllis Allen, known to me to be the person
whose name is subscr•ibed to the foregoing instrument and that she acknowledged to me that the same is the act of
United Riverside Rebuilding Corporation, Inc. and that she executed the same as the Acting Chairman and for the
purposes and considerations expressed in the foregoing insh•ument.
GIVEN LJNDER MY HAND AND SEAL OF OFFICE, this day of May, 2013.
Notary Public
After Recording Please Send To:
City of Fort Worth
Real Property
Attn: Cynthia Garcia
1000 Throckmorton
Fort Worth, TX 76102
United Riverside EXHIBIT A
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GQUN�IL: A�T101�: ApproYet� As Am�endec�ar� 6/41201�• -' �
CONTINUED FROM A PREVIOUS WEEK
DATE:
CODE:
5/21 /2013
G
REFERENCE NO.: G-17899
TYPE:
NON-
CONSENT
LOG NAME:
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17URRC
SETTLEMENT
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SUBJECT: Authorize Settlement of Claims Against United Riverside Rebuilding Corporation,
Execution of a Settlement Agreement and Payment of Closing Casts in the Amount Not to
Exceed $10,000.00 (COUNCIL. DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Settlement Agreement for the purpose of settling any and all claims against
United Riverside Rebuilding Corporation;
2. Authorize the acceptance of up to eight parcels of real property, including mineral interests and the
acceptance of $1,091.52 in lieu of deeding 3021 East 4th Street to the City;
3. Authorize the acceptance and recording of appropriate instruments for the real property; and
4. Authorize the payment in the amount not to exceed $10,000.00 for closing costs and expenses for the
transfer of the properties from the United Riverside Corporation to the City.
DISCUSSION:
In 2006, the City of Fort Worth awarded federal funds to United Riverside Rebuilding Corporation (URRC)
for the acquisition of lots and the construction of six homes to be sold to low and moderate income
families. URRC bought various lots with the funds and constructed four single family homes. URRC sold
one of the homes constructed to an ineligible buyer, did not provide the City with sufficient income
documentation for the buyer of the second constructed home, and did not build homes on the remaining
lots purchased with federal funds. As a result, the City requested repayment of a portion of the federal
funds awarded to URRC.
In order to resolve all issues with the City, URRC has agreed to convey the following properties located in
Council District 8 to the City by special warranty deed, including the mineral interests on each property:
1. 2624 La Salle
2. 2628 La Salle
3. 2700 La Salle
4. 2708 La Salle
5. 2720 La Salle
6. 1209 East Robert
7. 2805 Ennis
URRC will pay the City $1,091.52 in lieu of deeding 3021 East 4th Street to the City. In addition, the URRC
will convey 2612 Chenault to United Riverside Neighborhood Organization to be used as a Community
Garden. If the neighborhood organization is unable to accept ownership, 2612 Chenault will be conveyed
to the City.
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The City will pay closing costs and expenses in the amount up to $10,000.00 for the transfer of the
� properties from the United Riverside Corporation to the City.
Staff recommends acceptance of the settlement Agreement. Once the properties have been conveyed to
the City, Staff recommends selling the properties in the next bid sale.
Staff is recommending that M&C G-17899 be amended 'to include 3013 Finley Street and ta: change: the'%
amount of repayment to $1,092:00 instead of $1,Q91.52:;
The properties are located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the operating budget, as
appropriated, of the General Fund
TO Fund/Account/Centers
FROM Fund/Account/Centers
3) GG01 539120 0176000 $10,000.00
Submitted for Citv Manager's Office b�
Oriqinatinq Department Head:
Additional Information Contact:
ATTACHMENTS
URRC - LaSalle and Ennis.pdf
URRC - Robert.pdf
Fernando Costa (6122)
Cynthia B. Garcia (8187)
Cynthia B. Garcia (8187)
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