HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2014-03RESOLUTION NO. FWLDC-2014-03
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Approving a Loan with Southwest Bank for the
Acquisition of Southwest Municipal Courthouse at 3741 SW Loop 820
WHEREAS, on December 10, 2010, 3741 SW Loop 820, LLC ("LLC") entered
into an Agreement to Donate with the City of Fort Worth (City Secretary Contract No.
41234) under which the LLC donated approximately 2.043 acres of real property
(excluding improvements thereon) located at 3741 SW Loop 820, Fort Worth, Texas
("Property"), to the City of Fort Worth ("City");
WHEREAS, the Agreement to Donate also provided that the LLC enter into a
lease agreement ("Lease") with the City with respect to the improvements located on the
Property, which consists of a building of approximately 30,600 square feet ("Building"),
and the Lease was executed by both parties on December 10, 2010 (City Secretary
Contract No. 41235);
WHEREAS, on July 1, 2011, the ten year term of the Lease commenced, and will
expire on June 30, 2021, with an annual rent of $229,500.00, for a total rent of
$4,590,000.00 over the term ("Total Rent");
WHEREAS, the Agreement to Donate also provided that upon payment in full of
the Total Rent, the LLC will donate the Building to the City;
WHEREAS, in August 2011, the LLC entered into a loan agreement with
Southwest Bank ("Bank") for $3,300,000.00 for the Building and tenant improvements
thereto, which has a current outstanding balance of approximately $2,600,000.00 ("Loan
Agreement");
WHEREAS, on February 4, 2014, the Fort Worth Local Development
Corporation ("Corporation") passed a resolution to approve the acquisition of the
Building from the LLC and accept assignment of all related documents, including the
Loan Agreement; and
WHEREAS, subsequent to the resolution on February 4, 2014, Bank proposed a
new loan to the Corporation with better terms than the Loan Agreement, and the
Corporation desires to enter into the new loan.
RESOLUTION NO. FWLDC-2014-03
PAGE 2
NOW, THEREFORE, BE IT RESOLVED that the officers of the Corporation,
or any one of them, be and are hereby authorized to incur indebtedness on behalf of the
Corporation by borrowing from, or making other financing or credit accommodations
with Bank in connection with a proposed loan in the approximate amount of
$2,712,362.00 (the "Loan") in the aggregate to the Corporation (and any increases,
renewals, extensions and/or modifications thereof), upon such terms and conditions as
they in their sole discretion deem desirable. For such purpose, these persons are
authorized to make, execute, and deliver promissory notes, deeds of trust and other
obligations, and documents of all kinds (and amendments to and modifications including
increases, renewals and extension of any thereof) executed by the Corporation and to
assign and pledge as collateral security for any and all such loan agreements, promissory
notes, and other obligations, instruments, and documents of the Corporation to Bank now
or hereafter existing, any real or personal property of the Corporation.
RESOLVED FURTHER, that the actions of any one or more officers of the Corporation
in incurring indebtedness to Bank heretofore for the account of the Corporation in
executing any agreement or document relating thereto, in assigning or pledging any of the
Corporation's property for the payment thereof, or in doing any act authorized by these
Resolutions be and are hereby ratified, confirmed, and approved.
RESOLVED FURTHER, that the Loan and the documents which evidence the Loan
(collectively, the "Loan Documents") are authorized by the Texas Constitution and/or by
Texas statute including the Texas Local Government Code, and further that the Loan
Documents are intended to be and are subject to Subchapter 271.151 and 271.152 of
Texas Local Government Code.
RESOLVED FURTHER, that these Resolutions shall have the force of a continuing
agreement with Bank and shall be binding upon the Corporation until a Resolution
amending them shall have been duly and legally adopted and Bank shall have been
furnished a certified copy.
RESOLVED FURTHER, that the President of the Corporation is hereby directed to
certify to Bank a copy of these Resolutions.
Adopted this 6ch day of May, 2014.
Dennis S]
President