HomeMy WebLinkAboutContract 58601City Secretary Contract #
58601
LEASE AMENDMENT
TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
This LEASE AMENDMENT TO LAKE WORTH RESIDENTIAL LEASE AGREEMENT
("Amendment") is entered into by and between Jon Fincher and Christa Fincher ("Tenant") and City of
Fort Worth, a Texas home rule municipal corporation ("Landlord")
WHEREAS, Landlord entered into a ground lease commencing on February 1, 1982 on ending on January
31, 2032 ("Lease") with W.R. Young, Jr, the original lessee under the Lease, for property located at 9504
Watercress Drive, Fort Worth, Texas 76135 and being more particularly described as Lot 2R, Block 21,
Lake Worth Leases, being a replat of Lots 2, 26, and 27, Block 21, Lake Worth Lease, an addition to the
City of Fort Worth, Tarrant County, Texas according to that plat recorded as document number
D222267694 and filed on November 10, 2022 in the Official Real Property Records of Tarrant County,
Texas (the "Leased Premises"), said Lease being attached hereto as Exhibit "A"; and
WHEREAS, through an assignment dated August 23, 2013, the Lease was assigned to Tenant; and
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;
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, are 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 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
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 RECORD
CITY SECRETARY
Amendment to Lake Worth Residential Lease Agreement FT. WORTH, Tx
9504 Watercress Drive
City Secretary Contract #
58601
1. 'Perm. 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 part of the 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
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 terms and provisions of the Lease between the
parties shall remain in full force and effect except as specifically amended herein.
Amendment to Lake Worth Residential Lease Agreement
9504 Watercress Drive
City Secretary Contract #
58601
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
b LU-0 cdr
By: Dana Burghd off( c13,20 18:57 CST)
Dana Burghdoff
Assistant City Manager
APPROVED AS TO FORM AND LEGALITY:
-A///"., "7
Matthew A. Murray
Assistant City Attorney
M&C: L-15964
1295: NIA
ATTEST:
Jannette S. Goodall
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.
Nita Shinsky (Dec 1 02218:41 CST)
Name of Employee: Nita Shinsky
Title: Land Agent
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Amendment to Lake Worth Residential Lease Agreement
9504 Watercress Drive
City Secretary Contract #
58601
TENANT:
By:
Jon Fincher
By:
Christa Fincher
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the 14th day of December 2022, by Dana
Burghdoff, Assistant City Manager of the City of Fort Worth, a Texas municipal corporation,
on behalf of that entity.
o,�p.RY/'Ge/ SELENA ALA
2 n Notary Public �Ot�ww7aL�.
* + STATE OF TEXAS Selena Ala (Dec 14, 2022 17:48 CST)
9�///���OFVVV�y Notary I.D. 132422528
My Comm. Exp. Mar. 31, 2024 Notary Public
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the day of , 2022 by Jon
Fincher.
Notary Public
STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on the day of , 2022 by Christa
Fincher.
Notary Public
Amendment to Lake Worth Residential Lease Agreement
9504 Watercress Drive
City Secretary Contract #
TENANT:
STATE OF TEXAS
COUNTY OF TARRANT
58601
This instrument was acknowledged before me on the day o c sit , 2022, by Dana
Burghdoff, Assistant City Manager of the City of Fort North, a Texas municipal corporation,
on behalf of that entity.
Notary Pub
STATE OF TEXAS § ,2 �!" ` RORN HUGHETT
§ ? MY Notary D # 12$48 I S
COUNTY OF TARRANT § ? '' Expires I, 2024
This instrument was acknowledged before me on the day of '.[[ Jkl -, 2022 by Jon
Fincher.
ris-z-1
Notary Pub is
STATE OF TEXAS ? "" ROEIN MUGHEif
fly Afotary 1D # 126483018
COUNTY OF TARRANT ". ' tp' SOres May 1, 2024
7
----------
This instrument was acknowledged before one on the day of2022 by Christa
Fincher.
Notary Pub is
Amendment to Lake Worth Residential Lease Agreement
9504 Watercress Drive
THE STATE OF TEXAS §
COUNTY OF TARRANT §
LEASE AGREEMENT
KNOW ALL MEN BY THESE PRESENTS:
The City of Fort Worth, Lessor, a home -rule municipal corporation situated in Tarrant County, Texas, (hereinafter
sometimes referred to as "City") acting herein by and through If* 00 MkTS CN , its duly authorized
'89 St
City Manager, and -W-L R.1 YOMM g dli g Lessee, hereby make and enter into the following lease agree-
ment,
1.
For and in consideration of the prompt payment by Lessee, when due, of all rents as herein provided, and further
for and in consideration of the full and timely performance by Lessee ofall of Lessee's duties and obligations in strict
compliance with the covenants, conditions and agreements herein contained, City hereby demises and leases to Lessee,
and Lessee hereby accepts from City, the following described real property for the term and uses and subject to the
conditions set forth herein: (Subject to P.DDENDUM attached hereto)
LOT 2S BLOCK ZI l;,tUM Wouni SEAS$ 171{iaAKA wa
11. TERM
The terns of the lease shall be 50 years commencing Plaiotat°tir ii V82 and ending
Jangary.31s`Z)32,
The City may offer five (S) 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 564.00 said rent payable in 12 equal
installments, one such installment due on the first 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 (8Q%) 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 complianco 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 adapted ordinance or charter provision is not adopted solely for the purpose of
limiting the rights of Lessee and similarly situated Lessees.
F. accept the premises in their present condition as being suitable for all purposes of this lease.
G. 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 shah 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
all 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.
L indemnify, hold harmless and defend City from and against any and all mechanic's and materialmen's liens or
any other lien, 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.
J. provide and maintain suitable methods and means for the disf osal of trash, body waste, and excreta, in com-
pliance with applicable sanitation laws and ordinances.
K. not drill or dig any well on the leased land without the prior xTitten 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 premises, nor create or allow any nuisance to exist on
the premises.
M. not keep or permit any animals on the leased premises other than domesticated dogs and cats.
V, ":.S CWS RIGHTS AND OSLIGkTIONS
The City of Fort Worth shall:
A. approve the sale, or assignment (hereinafter collectively assignment) of this lease or remaining term, provided
that.
1. all amounts owed to the City hereunder and City ad valorem taxes are paid current to the date of such assign-
rnent-, and
137 1933
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 cinder this lease; and
4. said writing is executed and acknowledged in recordable form; 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 receipt of the aIssigttmcnt 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,
acid 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 stet 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 pr, 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 its the leased 1 and 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
An the term of this lease. , .
E. 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 recitals due hereunder, the City Manager may waive any portion of that year's rent after consideration
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.
VL .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. mane alterations, remodel, and male 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 anti improvements at any time by giving the
City 30 days notice of intention to termini, z,
VII. LXPIRATION OF LEASE
A. Upon expiration of (lie term of this tease the City shall pay to the Lcssec 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 rats amount based on the number of years the structure or improvements are in place or the number of
years remaining an 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 pars 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 shah pay the Lessee the market value of the structures and improvements as defined above upon
possMsion of the property. Acceptance of thcamount offered by the Ciry does not, rorfeit Lessee's right to dispute the
amount paid, nor shall any acceptance constitute a waiver of any legal remedy.Lessce 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. 10187 1934
b
VIIL TERMINATION OF SSE
A. In the event the Lessee:
1. is 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 lease, then the City may give notice to the Lessee of termina-
tion of the least 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 iaketi 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 go days shall become the property of the City,
C. In the event retrials to be paid under tt:e 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.
iD-. 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. ,
IX. 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 actuaIly made, or that will bp made, or
any extension or renewal of the same.
0. Such mortgage or deed of trust shall be in every respect subject, subservient and subordinate to all the conditions
and covenants of this Iease-
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 Ieastd 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 [case, in conjunc-
tion H%itha.trustee"s sale or transfer to satisfy Lessee's obligation to a mortgagee, as does bit Lessee,undcr 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 deal 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 can the leased land when this least is entered into are, and shall continue to
be, the property of the i.essee, 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 Assignec shall assume the duties and liabilities as set out above.
X . VENUE
Venue of any action brought hereunder shall lit exclusively in Tarrant County, Texas.
XM. 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. L&ssec'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;
2. City Manager of the City of Fort Worth, City Hall, Fort Worth, Texas;
3: Mortgdgee at the address auppiitd to the City iu. writing fox the mailing of aces nclfcc.
XTV. 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, assignmtnts, or agreements of any nature concerning the leased land or property situated
thereon are superseded by the terms of this lase.
EXECUTED at Fora Virorth, Tarrant County, Texas, this _day of
3.
T
10187 1935
ATTEST. YCITT-YOF%.IW RTH
5 etary '-
APPROVED AS TO FORM AND LEGALITY,
pW *iAttorney Lessee Re Yo=u# 4r
STATE OF TEXAS §
COUNTY OF TARRANi' §
BEFORE ME, the undersigned. authority, a Notary Public in and for the State of Texas, on this day personaU,
appeared ^. L �`l ti n i 'j%�r1_-a ..--.-- -,known to me to be the person whose name i!
subscribed to the foregoing instrument, and acknowledged to me that he executed the same as the act and deed of thF
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 therei rated.
-tom
GIVEN UNDER MY HAND AND SEAT. OF OFFICE this � day of
Notary Public in and for
the State of Texas
BEFORE ME, the undersigned authority, a rotary Public in and for the State of Texas, on this day personally
appeared We- Rs multi, JR. ,known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and con-
sideration therein expressed.
GIVEN UNDER .MY HAND AND SEAL OF OFFICE this 2-6th day of H= A.D.
Notary Public in and for E-Imer Butlor
the State of Texas
my Cotrintisma.n Expires. Nomber 30 195
0
A D D E N" U M T O L E A S E A G R W- M E N TLM 29 BLOCK Z
THE STATE OF TEXAS
COUNTY OF TAY.RANT
I
KNOW ALL MEN BY THESE PRESENTS:
Paragraph IV of the foregoing Tease Agreement is amended to include, in addition to all
of the provisions contained therein, the following supplemental and additional provision:
H_ Have the right to terminate this Lease as to the portion of the leased land which is
nearest to the water and which is separated from the remainder of the leased land by
ikTRR UW , a public roadway. Such portion of the
leased land (hereinafter waterfront land), is shown on Exhibit 'A', which is attached hereto
and incorporated herein. lessor may terminate the Lease to the waterfront portion of the
leased land on any anniversary date of this Lease after February 1, 1992, by giving thirty
(30) days written notice.
Lessor shall pay to Lessee the market value of any structures and improvements located
on the waterfront land when the Lease is terminated, except for water wells, septic tanks, or
other sewage disposal devices.
For any water well, septic tank, or other sewage disposal device, the City shall pays the
higher of either market value of those improvements or the cost to relocate those improvements
onto the remaining portion of the leased land, or as an alternative to such payment, connect,
at the City's expense, the water and/or sewage facilities of the structures on the remaining
portion of leased ,land to an existing system for those services.
At the time the Lease is terminated as to the waterfront land the annual rent upon the
remaining portion of leased land shall be 60 % of the rent on the entire leased land for the
previous year.
Acceptance of any 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 legal remedy Lessee may
have to determine market value or replacement value. In the event that a court of competent
jurisdiction determines that the amount paid to Lessee by the City is in excess of market
value, the Lessee shall promptly refund any excess to the City.
EXECUTED at Fort Worth, Tarrant County, Texas this 26 bay of May , 1982,
ATTES
TXY Secretary
AFFF.OVED AS TO FORM AND LEG4LITY:
PGity kt-torney
STATE OF TEXAS
COUNTY OF TARRANT Z
CITYO , (2
By
Less we Xv,19Ang, Jr.
is
BEFORE ME, the undersigned authority, on this day personally appeared ✓,zs,
known to me to be the person whose name is subscribed to the foregoing instru-
ment, 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 cap ity -erein stated.
GIVE14 UNDER IY BAND AND SEAL OF OFFICE this to day of , A.D..1982.
My Commission Expires.
- _ Notar ub1ic in and for Tarrant County, Texas
STATE OF TEXAS X
COUNTY OF TACRANT �
BEFORE ME, the undersigned authority,on this day personally appeared
V. R YOUNG j dR , known to me to be the person(s) whose name is
subscribed ro the foregoing instrument, and acknowledged to me that he/they executed the same
far the purposes and consideration therein expressed,
GIVEN UNDER MY HAND AND SEAL OF OPPICE this 26thday of YAW A.D. 19 �
I:)rCommission Expires.
-- 'Joywber A, 1900 Notary Public in and for Tarrant County, Texas
[0187 1937
m
- µ.ALA-a+lt2A SJJ[viY A• �FJ6
A<- N, Cf-�ldt �L�vRY A�Hs
i
e
i�
10/13/2020
M&C Review
CITY COUNCIL AGENDA
COUNCIL ACTION: Approved on 11/8/2016
Official site of the City of Fort Worth, Texas
Fo H
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.
apps.fortworthtexas.gov/cou nciI_packet/mc_review.asp? I D=22991 &counci Idate=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 I Department
ID
FROM
Fund Department
ID
Account Project Program Activity Budget Reference # Amount
ID Year (Chartfield 2)
Account Project Program Activity Budget Reference # Amount
ID Year (Chartfield 2)
Submitted for City Manager's Office by_
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
LAKEWORTH RESIDENTIAL LEASES 8x11.pdf
Jay Chapa (5804)
Steve Cooke (5134)
Lester England (8053)
Jean Petr (8367)
apps.fortworthtexas.gov/council_packet/mc_review.asp?ID=22991 &counciIdate=11/8/2016 2/2