HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-06-2018RESOLUTION NO. FWLDC-06-2018
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorizing the Use of Funds of Proceeds front
Sale of 250 West Lancaster, Fort Worth, Texas for
Certain Economic Development Activities
WHEREAS, the Fort Worth Local Development Corporation ("Corporation") was an active
party to the development of the mixed use development located at 250 West Lancaster Avenue,
Fort Worth, Texas ("250 Lancaster") with the purpose of promoting revitalization of the area and
benefiting the citizens of Fort Worth by creating affordable housing, retail, jobs and commercial
opportunities in an area in need of revitalization;
WHEREAS, January 23, 2018, the Board of Trustees of Corporation approved a resolution to
authorize the sale of 250 Lancaster by its owner, Lancaster Corridor Redevelopment, LLC, of
which Corporation is the sole member, to Beachwold Partners, LP, and on August 9, 2018, the
sale of 250 Lancaster to Beachwold Partners, LP's sole asset entity, BW Lancaster LLC, was
closed and the property conveyed;
WHEREAS, the net proceeds from the sale of 250 Lancaster will be in an approximate amount
as set forth in the chart attached hereto as Exhibit "A"; and
WHEREAS, the Corporation desires to transfer the net proceeds from the sale of 250 Lancaster
from the Lancaster Corridor Redevelopment, LLC to the City of Fort Worth to fund (i) a new
Economic Development Specialist position focused on research, request for proposals and
incentive analysis, and urban redevelopment; (ii) marketing and research resources for efforts
such as, but not limited to, message development, target industry recruitment, trade shows, and
international opportunities; and (iii) incentives to compete with other communities to attract new
business and economic development to the City or to retain existing business via a new
Economic Development Incentive Fund ((i)-(iii) collectively, "Certain Economic Development
Activities").
NOW, THEREFORE, BE IT RESOLVED that the net proceeds from the sale of 250
Lancaster, as approximately set forth on the attached Exhibit "A", less the amount for payment
of capital gains tax, be transferred from the Lancaster Corridor Redevelopment, LLC to the City
of Fort Worth to fund Certain Economic Development Activities.
August, 2018.
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By sec retary 1 ��
EXHIBIT "A"
NET PROCEEDS
FROM SALE OF 250 LANCASTER
Sale Price
$
25,250,000
Purchase Credit Retail CAM, Taxes, and Repairs
$
85,000
Deposits Less Prorated August Income
$
10,801
2018 Property Taxes (Prorated)
$
368,547
Parking Garage Equipment
$
150,000
Loan Balance
$
16,629,357
Penalty Payment to Pinnacle Bank
$
405,608
Closing Costs
$
97,851
Marcus & Millichap (1.5%)
$
377,625
L2L Payment for Consulting Services
$
387,143
Repayment of Short-term LDC Loan
$
205,833
Required Reimbursement for City Land
$
2,000,000
Net Proceeds from Sale*
$
4,937,843
*Does not include capital gains tax in an approximate amount
of $1,036,947.00