HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2019-03RESOLUTION NO. FWHFC-2019-03
FORT WORTH HOUSING FINANCE CORPORATION
A RESOLUTION RATIFYING CONTRACT FOR THE SALE OF 904 E.
WEATHERFORD STREET TO STONEHAWK CAPITAL PARTNERS, LLC, OR AN
AFFILIATED ENTITY
WHEREAS, the City Council of the City of Fort Worth ("City") has adopted
development and revitalization of the City's neighborhoods and affordable housing stock as a
strategic goal, and City citizens and the City Council have determined that quality accessible
affordable housing is needed for moderate, low and very low income City citizens;
WHEREAS, the City Council created the Fort Worth Housing Finance Corporation (the
"Corporation") in 1979 pursuant to the Texas Housing Finance Corporations Act, Chapter 394
of the Texas Local Government Code, to facilitate neighborhood revitalization and housing
initiatives in the City, including but not limited to issuing tax exempt bonds, developing,
rehabilitating and promoting housing, and assisting low to moderate income City citizens in
acquiring quality, accessible, affordable housing through lending and construction activities;
WHEREAS, the Corporation is the owner of approximately 2.619 acres of land, more or
less, located in downtown Fort Worth, commonly known as 904 E. Weatherford Street (the
"Property");
WHEREAS, the Board of Directors of the Corporation (the "Board") approved the
purchase of the Property from the Fort Worth Transportation Authority to develop affordable
housing in downtown Fort Worth, and approved entering into a contract with the City to use
$2,200,000.00 of the City's Community Development Block Grant ("CDBG") funds in the form
of a deferred forgivable loan for the purchase (Resolution No. FWHFC-2015-06 and City
Secretary Contract No. 47953, the "CDBG Contract"). The Corporation purchased the Property
on July 18, 2016, and executed a note and a deed of trust in favor of the City securing the
Corporation's performance of the CDBG requirements for the use of the CDBG funds;
WHEREAS, the Corporation made several attempts to develop affordable housing on the
Property, but no project was financially feasible;
WHEREAS, the Corporation no longer intends to develop affordable housing on the
Property, and CDBG regulations require the Corporation to sell the Property for fair market
value and return the original amount of CDBG funds to the City along with any additional net
sales proceeds as CDBG funds were used for the purchase of real property;
WHEREAS, the Corporation hired an appraiser to determine the fair market value of the
Property, which was determined to be $2,852,000.00, and desires to sell the Property;
RESOLUTION NO. FWHFC-2019-03
PAGE 2
WHEREAS, StoneHawk Capital Partners, LLC, is desirous of purchasing the Property to
develop affordable multifamily housing in downtown Fort Worth and submitted ark offer to
purchase at fair market value in the form of a fully executed Contract for Sale and Purchase of
Real Property on August 12, 2019 with an expiration date of August 15, 2019 for the offer;
WHEREAS, Fernando Costa, General Manager of the Corporation, executed the
Contract for SalevandPurchase of Real Property, contingent on Board approval, before the offer
expired;
WHEREAS, the CDBG Contract will be terminated upon the return to the City of the net
proceeds from the sale of the Property and the federal requirements for the use of the CDBG
funds will no longer apply to the Property; and
WHEREAS, the Board desires to approve the sale of the Property to StoneHawk Capital
Partners, LLC, or an affiliated entity for fair market value and the termination of the CDBG
Contract with the City.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE FORT WORTH HOUSING FINANCE CORPORATION:
1. THAT the Board approves the sale of 2.619 acres of land, more or less, commonly
known as 904 E. Weatherford Street (the "Property") to StoneHawk Capital Partners,
LLC, or an affiliated entity, for $2,852,000.000 and authorizes the payment by the
Corporation of common and customary closing costs related to the sale.
2. THAT the Board ratifies the execution and delivery of the Contract for Sale and Purchase
of Real Property by Fernando Costa, General Manager of the Corporation, and such
action is hereby in each and every respect authorized, adopted, confirmed and ratified as
a valid action of the Corporation, effective as of the date such action was taken.
3. THAT the Board approves the execution and delivery of the deed, the closing statement,
and any other related documents necessary to complete the sale of the Property.
4. THAT Fernando Costa, General Manager of the Corporation, or Sonia Singleton,
Assistant General Manager of the Corporation, or their duly appointed successors, are
each authorized to execute and deliver the deed and the closing statement for and on
behalf of the Corporation along with any related documents necessary to sell the
Property.
5. THAT the Board approves the payment of the net proceeds from the sale of the Property
to the City of Fort Worth in fulfillment of the requirements of the CDBG regulations and
the subsequent termination of the CDBG Contract.
THAT this Resolution takes effect on the date of its adoption.
RESOLUTION NO. FWHFC-2019-03
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AND IT IS SO RESOLVED.
Adopted August 27, 2019.
FORT WORTH HOUSING FINANCE CORPORATION
IN
Gray, President