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HomeMy WebLinkAboutContract 58835City Secretary Contract No. CONTRACT OF SALE AND PURCHASE (Sale by City of Fort Worth of Lake Worth Leased Lot) 58835 THIS CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into by and between the CITY OF FORT WORTH ("Seller"), a Texas home rule municipal corporation acting by and through its duly authorized City Manager or Assistant City Manager, and LAZARO REYES, JR. ("Purchaser") as of the date on which this Contract is Executed by the last to sign of Seller and Purchaser ("Effective Date"). RECITALS 1. Seller is the owner of the real property only (exclusive of improvements) known as Lot 17, Block 15, Lake Worth Leases, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat recorded on July 2, 2004 as document number D204206497 in the Official Real Property Records of Tarrant County, Texas and also known as 7321 Love Circle, Fort Worth, Texas 76135 (the "Property"), as shown and more particularly described on the attached Exhibit "A", incorporated herein for all purposes. 2. Seller and Purchaser (as successor -in -interest to original lessee) are parties to a Lease Agreement, as amended, for the Property dated January 27, 1982, and recorded in the Official Real Property Records of Tarrant County, Texas as Document number D206175000 on June 9, 2006 (the "Lease Agreement"). 3. The Lease Agreement provides Purchaser with an option to purchase the Property ("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, warranties and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Seller and Purchaser agree as follows: Section 1. Agreement of Sale and Purchase. (a) Seller agrees to sell and convey the Property to Purchaser, and Purchaser agrees to purchase and accept the Property from Seller, for the purchase price (as defined below), subject to the terms and conditions set forth in this Contract. (b) Seller shall convey the Property to Purchaser AS -IS, as set forth in Section 5. (c) In Seller's conveyance of the Property to Purchaser, the following rights and interests shall be reserved to Seller (or have previously been reserved by Seller's predecessor in OFFICIAL RECORD Contract of Sale and Purchase - Larazo Reyes, Jr. CITY SECRETARY 7321 Love Circle FT. WORTH, TX pg. 1 title), and such reservation is hereby approved for all purposes: 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 aircraft. Purchaser hereby releases Seller, its officers, agents and employees from 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, and any easement necessary for the continued operation and maintenance of any existing public infrastructure on the Property. (f) 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 purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller in cash at Closing (defined below), is Forty Thousand Dollars and 00/100 ($40,000.00). 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 Lazaro Reyes, Jr. dated November 11, 2022, Seller has determined that the Purchase Price reflects the current fair market value of the Property. Section 3. Title Commitment and Survey. (a) Within fifteen (15) days after the Effective Date, Purchaser shall obtain at Purchaser's sole cost and expense (i) a Commitment for Title Insurance and Title Policy ("Title Commitment") from the Title Company of Purchaser's choice ("Title Company"), setting forth the status of the title of the Property and showing all liens, claims, easements, rights -of -way, reservations, restrictions, encroachments, tenancies, and any other encumbrances (collectively, the "Encumbrances") and other matters, if any, relating to the Property; and (ii) a legible copy of all documents referred to in the Title Commitment, including but not limited to, plats, reservations, restrictions, and easements. (b) Within twenty-five (25) days after the Effective Date, Purchaser may obtain, at Purchaser's sole cost and expense, an updated survey ("Survey") consisting of a plat and field Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 2 notes describing the Property, prepared pursuant to a current on -the -ground staked survey performed by a registered public surveyor or engineer satisfactory to Purchaser and Title Company. The Survey shall (i) be certified to Purchaser, its successors and assigns, and Title Company, (ii) reflect the actual dimensions of and the total number of square feet within the Property, net of any portion thereof lying within a publicly dedicated roadway or a utility easement, (iii) identify any rights -of -way, easements, or other Encumbrances by reference to applicable recording data, and (iv) include the Surveyor's registered number and seal, and the date of the Survey. The description of the Property prepared as a part of the Survey will be used in all of the documents set forth in this Contract that requires a legal description of the Property. (c) If the Title Commitment or Survey discloses any Encumbrances or other matters that are not acceptable to Purchaser in Purchaser's sole discretion, then Purchaser shall give Seller written notice thereof within five (5) days after receipt of the Title Commitment, Survey and all documents referred to in the Title Commitment, specifying Purchaser's objections ("Objections"), if any. If Purchaser gives such notice to Seller, Seller may cure the Objections, but shall be under no obligation to do so. (d) If Purchaser gives notice of Objections and Seller does not cure the Objections, cause the Title Commitment and Survey to be amended to give effect to matters that are cured, and give Purchaser written notice thereof within the five (5) day period following receipt of the notice from Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this Contract by giving written notice thereof to Seller at any time after the expiration of such Cure Period, and, upon such termination, neither party hereto shall have any further rights or obligations; or (ii) to waive the Objections and consummate the purchase of the Property subject to the Objections which shall be deemed to be Permitted Encumbrances. Notwithstanding the foregoing sentence, if Seller has commenced curing the Objections and is diligently prosecuting the same, as determined by Purchaser in Purchaser's sole discretion, then Purchaser in Purchaser's sole discretion may extend the Cure Period for an amount of time Purchaser deems necessary for Seller to cure the same. PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 3(d) OR ANY OTHER TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE UNDER THE LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE LEASE AGREEMENT. Section 4. Review Reports. DELETED BY AGREEMENT OF THE PARTIES. Section 5. Representations, Warranties, "AS IS" (a) EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, PURCHASER ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT OR FUTURE, OF, AS, TO CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 3 GEOLOGY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT THEREON, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY, (G) THE MANNER, QUALITY, STATE OF REPAIR OR LACK OF REPAIR OF THE PROPERTY, OR (H) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY, AND SPECIFICALLY, THAT SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS REGARDING COMPLIANCE WITH ANY ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OF REQUIREMENTS, INCLUDING SOLID WASTE, AS DEFINED BY THE U. S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, OR THE DISPOSAL OR EXISTENCE IN OR ON THE PROPERTY, OF ANY HAZARDOUS SUBSTANCE, AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980, AS AMENDED, AND REGULATIONS PROMULGATED THEREUNDER. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT THE PROPERTY, PURCHASER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER. AS A MATERIAL PART OF THE CONSIDERATION FOR THIS AGREEMENT, SELLER AND PURCHASER AGREE THAT PURCHASER IS TAKING THE PROPERTY "AS IS" WITH ANY AND ALL LATENT AND PATENT DEFECTS AND THAT THERE IS NO WARRANTY BY SELLER THAT THE PROPERTY IS FIT FOR A PARTICULAR PURPOSE. PURCHASER ACKNOWLEDGES THAT IT IS NOT RELYING UPON ANY REPRESENTATIONS, STATEMENTS, ASSERTIONS OR NON -ASSERTIONS BY THE SELLER WITH RESPECT TO THE PROPERTY CONDITION, BUT IS RELYING SOLELY UPON ITS EXAMINATION OF THE PROPERTY. PURCHASER TAKES THE PROPERTY UNDER THE EXPRESS UNDERSTANDING THERE ARE NO EXPRESS OR IMPLIED WARRANTIES (EXCEPT FOR LIMITED WARRANTIES OF TITLE SET FORTH IN THE CLOSING DOCUMENTS). UPON CONVEYANCE, AS BETWEEN SELLER AND PURCHASER, THE RISK OF LIABILITY OR EXPENSE FOR ENVIRONMENTAL PROBLEMS AFFECTING THE PROPERTY, EVEN IF ARISING FROM EVENTS BEFORE CLOSING, WILL BE THE SOLE RESPONSIBILITY OF PURCHASER, REGARDLESS OF WHETHER THE ENVIRONMENTAL PROBLEMS WERE KNOWN OR UNKNOWN AT CLOSING. ONCE CLOSING HAS OCCURRED, PURCHASER INDEMNIFIES, HOLDS HARMLESS AND RELEASES SELLER FROM LIABILITY FOR ENVIRONMENTAL PROBLEMS AFFECTING THE PROPERTY, INCLUDING, BUT NOT LIMITED TO, UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT ("CERCLA"), THE RESOURCE CONSERVATION AND RECOVERY ACT (RCRA), THE TEXAS SOLID WASTE DISPOSAL ACT OR THE TEXAS WATER CODE. Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 4 PURCHASER INDEMNIFIES, HOLDS HARMLESS AND RELEASES SELLER FROM ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY ARISING AS THE RESULT OF SELLER'S OWN NEGLIGENCE OR THE NEGLIGENCE OF SELLER'S REPRESENTATIVES, BUT NOT ANY WILLFUL ACTS OR OMISSIONS OR GROSS NEGLIGENCE OF SELLER OR SELLER'S REPRESENTATIVES. PURCHASER INDEMNIFIES, HOLDS HARMLESS AND RELEASES SELLER FROM ANY LIABILITY FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY ARISING AS A RESULT OF THEORIES OF PRODUCTS LIABILITY AND STRICT LIABILITY, OR UNDER NEW LAWS OR CHANGES TO EXISTING LAWS ENACTED AFTER CONVEYANCE DATE THAT WOULD OTHERWISE IMPOSE ON SELLER IN THIS TYPE OF TRANSACTION NEW LIABILITIES FOR ENVIRONMENTAL PROBLEMS OR CONDITIONS AFFECTING THE PROPERTY. PROVISIONS OF THIS SECTION SHALL SURVIVE THE CLOSING. IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE HAS BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROPERTY IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO THE FOREGOING. PURCHASER ACKNOWLEDGES AND ACCEPTS ALL THE TERMS AND PROVISIONS BY HIS ACCEPTANCE HEREOF. b. The provisions of Section 5(a) shall be incorporated into the Deed. C. The provisions of Section 5(a) shall survive the Closing. Section 6. Option Period. DELETED BY AGREEMENT OF THE PARTIES Section 7. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right to make inspections, surveys, test borings, soil analyses, and other tests, studies and surveys, including without limitation, environmental and engineering tests, borings, analyses, site assessments, and studies ("Tests). Any Tests shall be conducted at Purchaser's sole risk and expense, and PURCHASER AGREES TO INDEMNIFY AND DEFEND SELLER AND THE PROPERTY FROM ANY LIENS AND CLAIMS RESULTING FROM SUCH TESTS. The Property will be restored by Purchaser to its original condition at Purchaser's sole expense following any site work. Purchaser shall release to Seller any and all independent studies or results of Tests obtained before Closing. Section 8. Closing Contingencies. DELETED BY AGREEMENT OF THE PARTIES. Section 9. Closing. (a) The closing of the sale of the Property by Seller to Purchaser ("Closing") shall occur through the office of the Title Company no later than eighteen (18) months after the Effective Date. At the Closing, all of the following shall occur, all of which are deemed concurrent conditions: Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 5 (1) Seller, at Purchaser's sole cost and expense, shall deliver or cause to be delivered to Purchaser the following: (i) A Special Warranty Deed ("Deed"), fully executed and acknowledged by Seller; conveying to Purchaser good and indefeasible fee simple title to the Property subject to existing known or unknown easements, rights -of -way, and prescriptive rights, whether of record or not; containing (A) reservations pursuant to Section 1(c), (d) and (e); (B) the following statement as required by Local Government Code 272.001(h), "To protect the public health, safety, or welfare and to ensure an adequate municipal water supply, the Property sold by the City of Fort Worth under Local Government Code 272.001(h) is not eligible for and the owner is not entitled to the exemption provided by Section 11.142(a), Water Code;" and (C) the language required in Section 5, with the precise form of the Deed to be determined pursuant to Section 11 below; (ii) Any other instrument or document necessary for Title Company to issue the Owner Policy in accordance with Section 9(a) (3) below. (2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be delivered to Seller through the Title Company a certified check or such other means of funding acceptable to Seller, in an amount equal to the Purchase Price, plus any rent due and owing under the Lease Agreement. (3) The Title Company shall issue to Purchaser, at Purchaser's sole cost and expense, a Texas Owner Policy of Title Insurance ("Owner Policy") issued by Title Company in the amount of the Purchase Price insuring that, after the completion of the Closing, Purchaser is the owner of indefeasible fee simple title to the Property, subject only to the Permitted. (4) Seller and Purchaser shall each pay their respective attorneys' fees. (5) Except as otherwise provided herein, all costs and expenses in connection with Closing shall be paid or borne by Purchaser including without limitation, Title Company attorney and escrow or settlement fees, costs of tax certificates, survey costs, and title insurance policy costs. (6) Purchaser shall be responsible for all ad valorem and similar taxes and assessments, if any, relating to the Property. (c) Upon completion of the Closing, Seller shall deliver possession of the Property to Purchaser. Section 10. Agents. Seller and Purchaser each represent and warrant to the other that it has not engaged the services of any agent, broker, or other similar party in connection with this transaction except the following: NA. PURCHASER SHALL BE SOLELY RESPONSIBLE Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 6 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 parry to whom the notice is given, (ii) delivered in person at the Closing (if that party is present at the Closing), (iii) placed in the United States mail, return receipt requested, addressed to such parry at the address specified below, or (iv) deposited into the custody of Federal Express Corporation to be sent by FedEx Overnight Delivery or other reputable overnight carrier for next day delivery, addressed to the party at the address specified below. (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 (c) The address of Purchaser under this Contract is: Lazaro Reyes, Jr. 7321 Love Circle Fort Worth, Texas 76135 With a copy to: City of Fort Worth City Attorney's Office Attn: Matthew A. Murray 200 Texas Street Fort Worth, Texas 76102 (d) From time to time either party may designate another address under this Contract by giving the other parry advance written notice of the change. Section 13. Termination, Default, and Remedies. (a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant to this Contract at the Closing for any reason other than termination of this Contract by Purchaser pursuant to a right so to terminate expressly set forth in this Contract or Seller's failure to perform Seller's obligations under this Contract, then Seller, as Seller's sole and exclusive remedy, shall have the right to terminate this Contract by giving written notice thereof to Purchaser prior to or at the Closing, whereupon neither party hereto shall have any further rights or obligations. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, PURCHASER ACKNOWLEDGES THAT A TERMINATION OF THIS CONTRACT PURSUANT TO THE TERMINATION RIGHT IN THIS SECTION 13(a) OR ANY OTHER TERMINATION RIGHT HEREIN WILL BE A DEFAULT BY LESSEE UNDER THE LEASE AGREEMENT, AND PURCHASER/LESSEE WILL THEN BE SUBJECT TO Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 7 THE TERMINATION RIGHT OF THE SELLER/LESSOR IN THE LEASE AGREEMENT. (b) If Seller fails or refuses to consummate the sale of the Property pursuant to this Contract at Closing or fails to perform any of Seller's other obligations hereunder either prior to or at the Closing for any reason other than the termination of this Contract by Seller pursuant to a right so to terminate expressly set forth in this Contract or Purchaser's failure to perform Purchaser's obligations under this Contract, then Purchaser shall have the right to terminate this Contract by giving written notice thereof to Seller prior to or at the Closing. A termination by Purchaser of this Contract due to Seller's default will not result in a default under the Lease Agreement. Section 14. Entire Contract. This Contract (including the attached exhibits) contains the entire contract between Seller and Purchaser, and no oral statements or prior written matter not specifically incorporated herein is of any force and effect. No modifications are binding on either party unless set forth in a document executed by that party. Section 15. Assigns. This Contract inures to the benefit of and is binding on the parties and their respective legal representatives, successors, and assigns. Any assignment must be approved by City of Fort Worth and this Contract cannot be assigned less than 60 days prior to the scheduled Closing. Section 16. Time of the Essence. It is expressly agreed that time is of the essence with respect to this Contract. Section 17. Taking Prior to Closing. If, prior to Closing, the Property or any portion thereof becomes subject to a taking by virtue of eminent domain, Purchaser may, in Purchaser's sole discretion, either (i) terminate this Contract, and neither party shall have any further rights or obligations hereunder, or (ii) proceed with the Closing of the transaction with an adjustment in the Purchase Price to reflect the net square footage of the Property after the taking. Section 18. Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Texas. Section 19. Performance of Contract. The obligations under the terms of the Contract are performable in Tarrant County, Texas, and any and all payments under the terms of the Contract are to be made in Tarrant County, Texas. Section 20. Venue. Venue of any action brought under this Contract shall be in Tarrant County, Texas if venue is legally proper in that county. Section 21. Severability. If any provision of this Contract is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 8 Section 22. Business Days. If the Closing or the day for performance of any act required under this Contract falls on a Saturday, Sunday, or legal holiday for the City of Fort Worth or federal holiday, then the Closing or the day for such performance, as the case may be, shall be the next following regular business day. Section 23. Multiple Counterparts. This Contract may be executed in any number of identical counterparts. if so executed, each of such counterparts is to be deemed an original for all purposes, and all such counterparts shall, collectively, constitute one agreement, but, in making 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 By: Dana Burghdoff (Feb 7, 202 9:12 CST) Dana Burghdoff, Assistant City Manager Date: ATTEST: Jannette S. Goodall City Secretary M&C: L-15964 1295: Not Required APPROVED AS TO LEGALITY AND FORM Matthew A. Murray, Assistant City Attorney PURCHASER LAZARO REYES, JR. yo �e_y By: Lazaro Reyes Jr. 1.2 CONTRACT MANAGER By signing I acknowledge that I am the person responsible for the monitoring and administration ofthis scontract, including ensuring all performance and reporting requirements. Name: Nita Shinsky Title: Land Agent OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract for Sale and Purchase — Lazaro Reyes, Jr. - 7321 Love Circle PS. 9 By its execution below, Title Company acknowledges receipt of this Contract and agrees to hold and deliver the same and perform its duties pursuant to the provisions of this Contract. TITLE COMPANY: Alamo Title By: Name: Lavonne Keith Title: Escrow Agent Email: Lavonne.Keith@AlamoTitle.com Phone (817) 921-7393 Contract of Sale and Purchase - Larazo Reyes, Jr. 7321 Love Circle pg. 10 Exhibit "A" Property Description Lot 17, Block 15, Lake Worth Leases, an addition to the City of Fort Worth, Tarrant County, Texas according to the plat recorded on July 2, 2004 as document number D204206497 in the Official Real Property Records of Tarrant County, Texas and also known as 7321 Love Circle, Fort Worth, Texas 76135 -uglssu Bons jo 21Ep aqi of l O.= pred an saxel uraa0leput, :1aam n ps S31D puu Iapunaaaq S3[� aql o; pamo sltmoma llB [ :1Eg1 papinoad.°uua; Bulaletual so asEal s6gl3o (3n2muBlsse Slangagqw Ia;lealaiaq) 3aaamgrsse so'a[es 211 anolddt y :hugs quoAA uOd JO S413 aq.L SNOLI.V91'ISO QNV SM91H S,HOSM -Al •sled pue sgop PQle0gsamop:usq;.aag3o sasltaaad Paseal aql uo sltunas Sus iltaaad Io daax ioa -W •saslmaad aq3 uo lslxa of aoutsmn Sue More s0 alta.t3 Ion 'sasltaaad atq uo alsem Sus `paluarmoo oq of mole io 'ilana0a ton '•I sal3uogine alsqudoadde aq3 Sq PanolddE pull palsal uaaq stq it piun llam Bons aroa; IalEM aq; Qsrt SOQ ,Sjr� Qrq r0 leAoa�+d$ irauu.� a0"d art+ ^n••3' aE a^' M A„z ''Fk, Ou •saoaualpao pull sMtl aolitllues algtollddE gips aouEgd aroo ul 't;aaoxa put `a;sem Spoq'gsea3 30 [esodsrp aq3 Io3 steam pas spotpm a[gElms ureiumuz puu apinold ;[tgaq kq uo auoSas Io aossaZ aqi Sq Silnllot Io lanpuoo Sus 3o 1[psaa a se Bmsu 10Pue[ PQ�I oqj uodn POW= aling3 io m►E[a 'uag Iaglo Aug so snarl s,uauzltua;Eat pus s,aluegoazu He pus Niue asaleBE pus mol; Si[D pua;ap pun ssalmleq Pioq 'S;lamapul 'I '" •saailnul so slsan8 slq 'aassa7 Sq pusl pam[ aqi 3o Soutdn000 pun asn aql so BUTsta[ agl of 1a2plQul ao;o lno Bulsus Suadoad ao suosaad of 'gwap 8u[pn[aut `Slnftrl Io saBEazup Io3 stululo Up put Sue lsuleBu Pue uiolj 'sa*Aoldura puro's L,zgu 'sia-,y;o sil 'Sllo aq; pua;ap pus ssa[uLmq P[oq `S;IutuaPul 'H aassaZ aqi JO uolssruto Io in ,fus ao; aiglsuodsal aq Sum ou m augs kilo aql pue'oialagl paEBaa ql►M suolssnuo pus sloe slq -1 qj sat Hum a[glsuodsaa pug saslurald otp jo.uolssassod ut luuml luopuadapul ue aq of pauraap aq H aseal s. p 3o sasodind [Ie Io; algtlms gtgaq st uoglpuoa luasaid Ilagl ul sasluzaad aq3 ldamu •3 saassaZ palsnils Sla pips pus aassa-1 3o slggu aql gullnm[ ;o asodind aqi ao; Slolos paidope 1oa sl uolslnoid Iaimga Io aauuulp10 paldopu Ia13Evlataq Sut su 8uol os paldope -mirulaiaq io Pa;;a ul Mou IaglagM `tDI01A 1103 JO Silo aql jo saoueulpap puE Iauegz) aql put sLma j jo aieis alp 3o saln;tls aql 'EouaurV JO sOMIS PQ3lufl QTjo sMEI aqi g3rm apusgdmoo ur 'puEl pasea[ aqi Sdn000 pat asn •g saoutalplo gvluoz algmgddu gllM 33uerlduro3 al 'sasodmd luuotl==a aalEM Pue [Egaaplsal ao3 PUel PaSrai aq1 asn o1 algt aq (I ItaC snolnaad agl Io; luau aql Aq ums )LIED BuIS[dp[ntu pne `lonpold;8gl 01 (I) auo BalpPe '(8'0) sglua3 lggra Sq 1[nsai;ug3 BurSldl;lnm'laagonb lEq; Lao1; (l) Quo BugoEaigns 'mf. 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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 Account Project Program Activity Budget Reference # Amount ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # ID ID Year (Chartfield 2 Submitted for City Manager's Office by_ Jay Chapa (5804) Originating Department Head: Steve Cooke (5134) Additional Information Contact: Lester England (8053) Jean Petr (8367) ATTACHMENTS LAKEWORTH RESIDENTIAL LEASES 8x11.pdf Amount apps.fortworthtexas.gov/council_packet/mc_review.asp?ID=22991 &counciIdate=11/8/2016 2/2