HomeMy WebLinkAboutContract 55868CSC N o. 55868
LEASE AMENDMENT
TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
This LEASE AMENDMENT TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
("Amendment") is entered into by and between George and Theresa Galloway ("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 Col. James D.
Wilmeth, the original lessee under the Lease Agreement for property located at 8501 Heron Dr, with a legal
description more particularly described as Lot 39, 39A, 41, 42, and Tract D, Block 29, Lake Worth Leases
Addition, Fort Worth, Tarrant County, TX (the "Leased Premises"), said Lease attached hereto as E�ibit
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WHEREAS, through assignment(s), the Lease is now between Landlord and Tenant for the Leased
Premises, and such Lease has a fifry year term ending on January 31, 2032;
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 deternuned by a certified
appraiser;
WHEREAS, Landlord and Tenant desire to effect a sale of the Leased Premises fi•om 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
WHEREAS, the existing Lease does not provide for terms of disposition of the Leased Premises in the
event of a sale or for the tei�ns 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
provide for such terms.
NOW THEREFORE, in consideration of the mutual agreements herein and other good and valuable
consideration, the parties agree as follows:
OFFICIAL REC�RD
CITY SECRETARY
FT. WORTH, TX
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
A. Any buildings, improvements, additions, alterations, and fixtures (except furniture and
trade fixtures) constructed, placed, or maintained on any pairt of the Leased Premises during
the lease teim 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 tei�rninates.
B. Before the Lease ternunates, 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
resulting from the removal. Any such items not removed by the lease termination date will
become Landlord's property on that date."
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 teims and provisions of the Lease between the
parties shall remain in full force and effect except as specifically amended herein.
Executed to be effective as of the date this Amendment 1s notarized by the City ("Amendment Effective Date"). LANDLORD:
CITY OF FORT WORTH, TEXAS, a Texas municipal corporation By: Dana Burghdoff, Assistant City Manager APPROVED AS TO FORM AND LEGALITY: �ta,,,, �a,)' Matthew Murray, Assistant City Attorney M&C: L-15964 1295: NIAATTEST: �9� City Secreta1y 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 pe1formance and reporting requirements. Name of Employee: Nita Shinsky Title: Land Agent TENANT:
George Gallo ,ay{Jun 15,2021 ll:OSCDTl P1inted Name: George Galloway Printed Name: Theresa Galloway
STATE OF TEXAS
COUNTY OF TARRANT
.
This instrument was acknowledged before me on the lOth day of �une 2021 � 2021, by
Dana BurEhdoff, assistant city mana�er of the City of Fort Worth, a Texas municipal
corporation, on behalf of that entity.
;�PRYP�e SELENA ALA
_ ��� Nbtary Public
* � � STATE QF TEXAS
�'i. �-y No#ary I.D: 132422528
9�oF� My Comm. Exp. Mar. 37, 2024
STATE OF TEXAS
COUNTY OF TARRANT
.
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Selena AI� 0,� :17 CDT)
Notary Public
This instrument was acknowledged before me on the
2021, by Geor�e Galloway.
STATE OF TEXAS
COUNTY OF TARRANT
.
Notaiy Public
This instrument was acknowledged before me on the
2021, by Theresa Galloway.
Notaiy Public
day of
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'� � LEASE AGREEMENT ExH i B►r A
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TF1E STATE OF TEXAS §
§ KNOW ALL h1EN� BX THESE�PRESENTS:
�GaOUNT.Y-�OF'TARRANT § ,
The Gyry of Fort Worth, I,essor, a homc-rulc muniCipal cotporation�situated in Tarrant County, Tcxas; (hcrcinaf(cr
sometimes refe�red to as "City") acdng hcrcin by and through , its duly authorized
Cicy Managcr, and ,Lessce, hercby makc and entcr into thc following I�asc agrce-
ment.
Fon and in considera�ion'of the prompt paymcnt by Lesscc, when due, of all rcnts as herein provided, and iurthcr
for and ia consideration of thrfull and timelyperformance by Lcuee of all of Lessec's dutics and obligations in s�rict
compliana with•the covenants, conditions and agreements hcrein contained, City hercby dcmises and Icases to Lessee,
and l.essa hereby accepts from Gl'ty, the following described real property for the term and uscs and subject to the
condirioas stt forth hercin:
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ll. TERM
7i►e term of the lesse shall be 50 years commencing �*+ +�r .*�1, 3�8? — and cnding
Twmur� 3\ 2 32
The Gyty may offer five (S) year extensions to the term of the Iease on each fifch annivcrsary of thc lease. The:Lessca
may refuse such rxeension by giving notice to the City, in writing, witliin sixly�(60) dayrafter� rcceipt of noticc of any
txtauioa.
III. TsESSEE'S �RIGHTS AND OBL[CATIONS
1,essee shall: �
A,, pay annual reat to the City of Fort Worth in the sum of 5914:�Z` , ssid rent payable in 12 equal
inscallmen�s, one such insiallment dua on the �rst of each month:
B. pay the rent due undtr this lease to thc A;sessor=Collector ot Taxcs for the City ot Fort •�Vorih, ar other office
daignated hy the @ity.
C. .pay rent for each year after the first yearin an amount that shaU bc adjusted by eighty�perccnt (80%)�of•thc
change in the annual average of the ConsumcrPrice lndex U.S. City Average, "all'items" index; all urban consumers
(CP7-ln from the annual average forthc previous calendar year, as publishcd by the Bureau of Labor Statisdcs for thc
Uniltd Stata Departmznt of Labor, said adjustmcnt tobe computed by dividing the CP1-U for the most reccnc year
by the CAI-U for tht immediately praceding year, subtracting one (1) from that quotiant, multiplying that result 6y
eight-tenths (0,8), adding ont (1) tothat product, and' multiplying thae sum by thc rent for the prcvious ycar.
D: bt able to use the leased land' for residential and waitr recrcational purposcs, in compliancc with applicablc
zoning ordinances.
E. use and occupy the leased land, in eompliance with the laws.of thc Unitcd'Statcsof Amcrica, thc statutes of
the State of'fexas, and �he Chaner and Ordinanccs of thc City of Fort Worth, whether now. in effect or herainafccr
adopted so long as any hereinaf�er adopted ordinence or charier�provision is not adopted sokly for thc purpose oP
limiting the rights ot Lessee and similarly situated Lesstes.
F. accept the premises in their present condition as bCing Suitablc for all purposas.o6 this lease.
G. be deemed �o be an independcnt tenant in possession of the premises and responsible to all partics for his acts
and omissions with regard therelo, and the City shell in no way be responsible fan�any. act or omission of thc Lcssea
H. indemnify, hold harmless and defend the City, its officers, agcnts, and employets, From and against any and
all claims for damages or injury, including death, to persons or property arisins out of or incident to thc leasing or the
use and occupancy of the leased land by Lessee, his guests or invitees.
I. indemnify, hold harmlass and defcnd City from and aBainst any and all mechanic's and ma�crielmcn's liens or
any other lian, claim or rharge impostd upon the itased land or tising as a rosult of any conduct or activity by lhc
Lessec or anyone on nis behalt.
J. provide and maintain suitable me�hods and means tor the disposal ot trash, body wastc, and'oxcreca, in cnm-
pliantt with applicablasenitation laws and ordinances. .
K. not drill or dig any well on the leased iand �without thrprior written approval of the Ciry� nor use the water
from such wcll un tii nas becn tesied and apProved by the appropriatc authoricics.
L. not commit, ar allow to'be eommitted, any waste qn the premises, nor create or allow any nuisance [n cxist on
the premises.
M. not�ktcp or permit any animals on tha leased premiscs othtr than domesticaled dogs-and cats.
IV. liFS50R'S RIGHTS AND OBLiCAT10NS
Tht Gity:•ot Fort Wonh shsll;
A. approvt thr;ale, or assignment (hereinafter collectivcly assignmonq of this lease or remaining term, provided
chat�
1. all amounis owcd to thaCity hereundcr and Gity ad valorem iaxes are paid currcnl to the 8ete of such nssigm
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2, tha assignment is cvidenced in writing; and
3. in said assignment thc assigntt expresslgaccepts, assumes, mnd agrecs to perfocm all tcrms, conditions and
limi[ations to be kept and performed by�Lessee undarthis leasc; and
4. said wriiing is executed and acknowledged in•rtcordable torm; and
S. said assignment is submittcd to the City al the Gily ManaBcr's office or such othcr otficc design�tcd by the
City�Managcr.
Within 10 days of reccipt of Ihe aa3ignment tho City shall determina whcthcr ihc nssignmcnt is in complianca wilh
provisions A-I throu�h A-5 above and notiFy both hartics to said assiBnment if the assignmcnt dots no� comply wiih
those provisions. The City shall acknowleiige compliunce witl� thc above provisians on ihc tace of said assignmcnt,
and assignment shall then be recordcd in thc office of lhc County�Clork of Tarrant County, Texas, a� Lcsser's•ex-
pense. 6ampliance with thc p�ovistons set out abovrshall rclicvc thc Lcssee from furlher liability undcr this lease.
B. have the right to inspect the leasrdpremises for compliancc with City of Forl Worth"Minimum Suilding Stan-
dards Code,�ity Ordinance No. 8006,at the timc of any sale or trensfer. Thc City shall noti(y thc purchaser or assignze
in writing oC any �iolalions of said ordinancc within IO days of the submission of a,proposcd assignment to the Gity:
'The pprehaser o� assi6na sh�ll not be issued�a ccrtificate of occupancy by ihe City undl the requiremcnts of such ur-
dinnna have been complicd with:
C. shall not ennvey, sel�, or transftr its interest in th� leased land without allowing Ihe Lessee tht opportunity to �c-
quirc the leaaed land unlas the comcyance,;ale, or'transfcr is to a�govtrnmental entity with the power to condcmn
the propecty tor the purpose it is acquircd. All transters shall be subject to ihe compctitivc bidding (nws ot the Statc of
Ttsas and the ordinances and charter of the Gity of Fort Worth.
D. prnvide yearly statemcnts of thc rc�t due hercundcr and in such statcment spccify �he number of years rcmaining
in the tertn of this Icasc. '
E. ha�e the right to rnter upon thc above dacribed property �l reasonablc times 8nd under reasonablc cir-
cumstances for the purposes of axamining and inspecting thc leased land to dctcrminc whcther L•essee haa complied
with his obligations hcreunder. This provision shall not be construed to puthorize tntry into residenccs or othcr
buildinrs on the leased land exccpt whcre such entry is specifically authorizcd by the provisions of this leasc, the
statuta of the 5tata af Texas, or th� ardinances of the Cl�y of Fort Worth. �
F, uarrant tha[ Lesserwill have quict enjoymcnt and pcaceful possession o( the leased land, and that the City will
defend the Lasee in such quiet enjoyment and peaceful possusion during the term of thi�s lease.
G. Tht Ciiy Manager shall revitw chis Icase prior to each fitth annivecsary.and shall makc recommendations to the
Ctity Council reguding eatensions. I
V. LESSOR'8 OETIONS
The City ot Fan Wonh may; ia�he event that Lessec shall give noticc to the City that u financial hardship oxuts in
the paymenti ot centals due hereunder, the City Manager may waive any portion of Ihat yca� s rcnt aftcr considcration
of said hardship. Lasee shall havc tha right to prcunt his requcst to the City Couneil of F i rt 1Vorth should thaCity
Maneger deny the request.
Any renu waived �c a resulE of such hardship and remaining unpaid shnll constituta a lien agains[ tlie Lessee's im-
provemenu and such unpaid rents shall bear interat at the current legal rate.
VL L1�SSEE'S OPTION5
Lasee may:
A. sell, assign, or sublet this lease or remaining term thereof. .
B, construct new structures and enlarge exis�ing siructura on the leased land provided thet such consvuCdon is in
accordance with all applicable City Codes and Ordinances.
' C. �nake aleerations, remodel, and make improvcmonts ta existing structurts and thr leased l�nd, provided that
I such actions shall be in accardance with applicable City Codes and Ordinances,
D. terminate this ltase without reimbucscmcnt for-Lcssee's strucwres and improvamcnts at any time by giving thc
City 30 days notice of inlention to terminate.
Vll. EXPIRATION OF LEASE
_ f,; -��„ �,�,��{iun u%iiic lorm uf iiiis iousc ii�c��iry �iiwl �,ay 1u ihc i:cssce un amouuc cqu�i ro cna ti�cn maricc[
value of any structures or improvemcnts heretotore madc or erected on the leased premiscs, except that paymcnts tor
any new structurc and enlar8cmcnu to existin8 structures madt or erecttd during the Gnat 33 years of thc leas� tcrm
will be s pro rata amount based on tha number of years the strucwrc or improvemcnts are in place or the numbec of
ycars remaining on thc lea.ia at lhe time said strucrore or improvcments wcrc madc, whichcvcr is grcattr, iimes 2.$6
perctnt, never to exceed 100�'ro oP the market value of the ncw structure and the tnlargemcnt to the exlsling struccurt.
B. Replactmcnt of all or pan ot strucwres dcstroyed in whole or in part by fire, explosion or act of Ood art dtemed
structurcs or improvemrnts herctofore made orerected on the leased premisa.
C. The City shall pay the l.essee tNe market valut ot thc structures and improvcments as defined above upon
pouession o[ the property. Accepiance of the amoun[ offtred by tha City does noi fartcit Lessee's right to dispute the
amount paid, nor shall any acceptance cons8tute a waiver of nny legal remedy Lesset may have to deierminr market
vatue. In the evcnt thet a coun of competent jurisdiccion determines that ihe amount paid to thr Lessec by tha City is
in excas of market value oi such struc�ures or improvements, the Lessec ahall prompdy rafund such excess ro thc Citg.
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V11I: TERMINATION OFL'EASE
A, ln the�event the Lessee:
l. is in arrrars iq the paymeni of the rents, or other amounts aBrecd labt paid undcr the tcrms of this leasc; or
2. has failed to perform any obligation under this Itase; then the -Gity may givc notice to the�Lessee of cermina-
don of the lease by default, said nouco ta speciry in dctailthe defaults upon which the termination would be based. In
said notia the City shall demsnd that aations be taken within 45 days to curc thc dcfault or defaults upon which the
cermination 3s based or the laase shall be tarminuted.
B. In the event df a detault by Lessee, and said�LeSsee does not take action to curo che dcfault within 45 dayS of thc
notice from the Ciey, the Irase may be tcrminatcd and the Ciry shall have no duty to reimbursc thc Lessee for struc-
wrcs or improvements to the ltascd Innd. Thr Lcssec shali hava thc right'to removc said slructurc, improvemcnls, and
personalpropeny within 90 deys from thc datc of leasc tcrminalion by dcfault, and sh�ll vacate thc leascd land at the
cnd of said 40 days. All such property not removed within 90 days shall btcomc thc properly of th� Ciiy.
C. !n the event rentals to be paid undtnthc t�rms of this lease is not-paid when due, an additional Iatc pcnalry of
1:59'o per month shall be added'to thc amount duc.
D: UPon terminadon of this lease orexpiretion of the tcrm of this lcasc, Lessee shall be cntiNcd and authorized td
remove from the premises al4itcros of ptrsonal properlybclonging to�Lessae not permanently affixed Co the realcy and
all structura and improvements for which no "reimbursement is�madc under tha terms oG this leasc.
IX. MORTGAGES
1! A. So long as no default exists undcr thc terms of this leasc, the�Ltssee or any Assigncc may mortgagc his Icaschold
cstatt and improvements situated thercon to secure a loan or loans of moncy�actually madc, or that will bc made, or
any ex;ension or renewal af the samc.
B. Such u►ortgage or deed of trusi shalf bc in evcry respcct subject, subscrvicnt and subordinatc to all the condicions
and covenants of this lease.
C. In the cvent of a default that could result in thc termination of this lease withoui rcimburscmcnt to Lessec for thc
improvements and structures on the leaaed Ipnd, thc City shall give notice to thc mortgagec as is rtquire� [o bc given to
che Lasee, and said monga8ee shaU havc Ihe right to cure said default and/or perform the terms and conditions of
this lease.
b. A mortgagee or trustce undcr a dzed of trust shall have the samc right and powcr to assign this Icase; in cpnjunc-
tion with a trustee's sale or transfcr to satisfy�Lessee's obligation ro a mortgagce, as does the Lcsscaundar thc terins of
tltis lease.
E. At any time the City is to pay thc Lessec For structures or improvemcnts on the Icascd land, tht City,shall 6ive
�I noticr to each mortgagec of that payment, and said mortgagcc shall have the right to rcceive �pnymcnt for any
� outstanding obligation secured by mortgagc ordeed ot trust on the lcaschold and improvcmcnts.
�; F, The City shall be required to give such noticc only if thc mortgagec hns, in.writing, informed thc�Giry of i�s im
terest and has suppiied an address ior said naticc.
X. OWNERSHIP'OF IMPROVEMENTS
A11 �crutturu and improvemcnts si�uatcd on the Icased land whcn this lcasc is cntered into arc, and sliall continue to
be, the propeny of the Lasee, and all improvcmcnts�hcreinaftcr madc�by the Lesseaon the leased ]and shall bcthc
property of the Laste.
X1.SUCGFSSORSdN�INTEREST
p. in [he event oF the dcath of a Lessce, his sucaessors•and estate shall succced to his interest under �his lease, and
those tntided by law to succeed to the Lessee's inlerest in the lease shall continue to enjoy thc rigbts and benefits
hereunde� of the deceased �Leuce;
B. ln the evmt chat the Lessce or his Assigntc is adjudicatcd a bankrupt, said lcasc may. be nssigned as pro�•ided
above, and any Assignee shall assume thc duti�s and liabilitics as set out a6ove.
x[i. v�r�u�.
Venue of any.action brought hereundershall lie exclusivcly in Tarrant County; Taxas. �
Xlll. NOTICE ' '
A. Any notice required under this Icase, unless othcrwise speciCed; shall be given by dcpasiting 3n the United States
Mail as certifitd mail, pbscage prepaid, addressed to the:
1. Lasee's or Assignce'sat thc address shown on ihis lease unless said �Lessce or Assignec has furnishcd to thc
City, in writing, instructions to mail notices to anothcr address; ,
2. City Manager of thc City. of Fort Worth, City Hall, Fort Worth, Taxas;
3. Mortgagee at the addtes3 supplied to the C�iry;in wdting for the�mailing of such ndtice.
X1V. CONCLUSION
This instrument represents the entirc agrccmm� betwccn the parites concerning the leasing of the Icasad land and
shall be binding upon and shall be to the beneCt of thy parties harcto, theiF successor3, asslgns, and legal rtprescn-
tatives, and all prior leases, aasfgnments, or agreements of any nature concerning the leased land or properly situeted
thereon are.supersedcd by the terms of this lcase.
EXECUTED at Fnrt Worth, Tarrant County, Texas, this � day oP
,198_. .
3.
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the 4�ndersigned'euthority, a Nota�y Public.irrand for thc Statc of Tcxas, on this day,personelly
ap�� `�•, ('- `"7�InA"'Q.,-- ', knowrrio me to bc the porson whosc namc is
subsrribed to thc torc�oing instrumcnt, anti acknowlecigcd to mc that he axaCutcd ihe same as tfieac[ and deed of the
City ot Fon \Vorth; a municipal corporation of Tarrant County�Texas, and as �� � �
thtreof, and tor the purposas and considcration therein cxpres3ed and in the capaci�y.thcrci stated.
G1YEN UNDER MY HAND AND 5�AL OF OFFICE �his � 9. day of -_ ,
A:D.�198�.
S'CATE OF TEXAS §
COUNi'Y UF TARRANT §
exas on this day personally
� mc to bc t c person whose namt is
thc samz or the purposcs and con.
of
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CITY�OF'FORT� WORTH '
By . �+'"/,j. �t �2C0 `. _ -
A.D:
'�',,'s.� ';,y. '+. • Notary Rublic in and for
.';,_� ti� ,� thc Statc oF Texas
.',�:<_, '.,...
My Gummiss��n EafireSs:+ _Hovambar 90, 1984
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/I�t:J�/1� rf ). �/�A"l.tLc..�
Notary �Public in and� for
thc Statc oF 7'oxas
BEFORE ME, the undersigned authority, a Notary�Public in and for the St<
appw� r+i�r Ts,,,.,e-n ws7anrh ,kno ��
subsaibed to the fore�oing instrumcnt, and aeknowledgcd to me that he c uted
' sideration therein expressed.
G1VEN UNDER MY HAND AND SEAL dF OFFICE this _ i
198:?..;
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„ , ,, • , Return Recorde�i+Documeqts�to:
� 5usamTeddor, AJinlnl�traiivc TcctmFcinu
Cily of Nort �Vorlh /IteAI Yroperty
• � 927 Toylor Strcef, Forl WOrlh TX 7GI01
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