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HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-08-2018RESOLUTION NO. FWLDC-08-2018 FORT WORTH LOCAL DEVELOPMENT CORPORATION RESOLUTION OF THE BOARD OF TRUSTEES Authorizing the Sale of the Blue Mound Road Industrial Complex to CHMlndustries, Inc. and Anchor Fabrication, LLC for a Combined Amount of Not Less Than $11.0 Million WHEREAS, the Fort Worth Local Development Corporation ("Corporation") is the owner of an approximately 50.4 acre industrial complex with addresses of 4600 Blue Mound Road, Fort Worth, Texas ("4600 Blue Mound"), 4700 Blue Mound Road, Fort Worth, Texas ("4700 Blue Mound"), 1035 Meacham Boulevard, Fort Worth, Texas ("1035 Meacham"), 1381 Meacham Boulevard, For Worth, Texas ("1381 Meacham"), and 1401 Meacham Boulevard, Fort Worth, Texas ("1401 Meacham"), all as more particularly described on Exhibit A attached hereto (collectively, the "Property"); WHEREAS, prior to ownership by Corporation, the Property was purchased and improved with the proceeds of industrial revenue bonds issued by the Fort Worth Industrial Development, Inc., a non-profit corporation established by the Fort Worth Chamber of Commerce in 1966 ("FWID"), for the purpose of inducing the Fruehauf Trailer Corporation to locate a trailer manufacturing plant on the property; WHEREAS, FWID held title to the property and leased the Property and improvements to Fruehauf, with the lease payments being used to pay off the bonds; in order to make interest on the bonds tax-exempt under the laws at the time, the bond indenture provided that the Property would be transferred to the City of Fort Worth upon payment of the bond debt; the bonds were retired in 1996 and property was conveyed to the City of Fort Worth, who subsequently conveyed the Property to the Corporation for liability and other reasons in July 1999; WHEREAS, all buildings on the Property are fully leased, and 5.8 acres of vacant land not under lease; WHEREAS, CHM Industries, Inc. ("CHM"), the tenant of 4700 Blue Mound, executed a lease with Corporation on June 23, 2016, which lease contained an option to purchase 4700 Blue Mound Road, as approved by Corporation in Resolution No. FWLDC-2016-04, and CHM has executed its option to purchase; WHEREAS, CHM has also offered to purchase 1035 Meacham and 1381 Meacham, currently leased by A&R Logistics, Inc., and a portion of 4600 Blue Mound Road currently leased by Integerys Transportation Fuels LLC dba Trillium CNG ("Trillium") (collectively, Trillium's portion of 4600 Blue Mound Road, 1035 Meacham, and 1381 Meacham are referred to herein as the "CHM Sale Properties"); and WHEREAS, Anchor Fabrication, Inc. ("Anchor") executed a lease with the Corporation effective December 4, 2015 and has offered to purchase their leased portion of 4600 Blue Mound, and 1401 Meacham, currently leased by L&W Supply Corporation (collectively, Anchor's portion of 4600 Blue Mound and 1401 Meacham are referred to herein as the "Anchor Sale Properties"). RESOLUTION NO. FWLDC-08-2018 PAGE 2 NOW, THEREFORE, BE IT RESOLVED that, the sale of the CHM Sale Properties by Corporation to CHM in an approximate amount of $4,300,000.00 is hereby authorized; FURTHER RESOLVED that, the sale of the Anchor Sale Properties by Corporation to Anchor in an approximate amount of $6,820,000.00 is hereby authorized; FURTHER RESOLVED that notwithstanding the approximate sales prices set forth herein, in no event shall the total sales price for the Property be less than $11,000,000.00; FURTHER RESOLVED that Corporation shall retain the mineral rights in all Property to the extent the Corporation owns the mineral rights; FURTHER RESOLVED, that the leases with Trillium and A&R Logistics, Inc. be assigned to CHM effective upon the closing of the transfer of the CHM Sale Properties to CHM; FURTHER RESOLVED, that the lease with L&W Supply Corporation be assigned to Anchor effective upon the closing of the transfer of the Anchor Sale Properties to Anchor; FURTHER RESOLVED, that any incidental closing costs or costs for closing contingencies for the two sales are hereby authorized in a total amount not to exceed $575,000.00; FURTHER RESOLVED, that the agreement with Texas Commercial Management for property management of the Property be terminated effective on or before the date of the closing of the transfer of the CHM Sale Properties to CHM and the Anchor Sale Properties to Anchor; FURTHER RESOLVED, that any authorized signatory for the Corporation is authorized to execute any and all documents on behalf of the Corporation that are necessary to effect (i) the sale of the CHM Sale Properties and the Anchor Sale Properties, (ii) the closing contingencies, and (iii) all other actions authorized by this Resolution; and FURTHER RESOLVED, that the Secretary or any Assistant Secretary of the Corporation is hereby authorized and directed to certify the adoption of this Resolution. AdoptedY 1� y.ofS ., this 25 a September, 2018. ,i By. �Secretary