HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2014-04RESOLUTION NO. FWLDC-2014-04
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorizing a Loan from Pinnacle Bank for Lancaster Corridor Redevelopment,
LLC for the Lancaster Mixed Use Project
WHEREAS, the Fort Worth Local Development Corporation ("Corporation") is
an active party to the development of a proposed mixed use development located along
Lancaster Avenue between Throckmorton Street and Jennings Street in order to promote
revitalization of the area and to benefit the citizens of Fort Worth by creating affordable
housing, retail, jobs and commercial opportunities in an area in need of revitalization;
WHEREAS, the current scope of the first phase of the development is the
construction of (i) a 150,000 square foot mixed -use development with approximately 120
residential units (including approximately 20% workforce housing), and approximately
25,000 square foot retail space, and (ii) a parking garage with approximately 450 spaces;
WHEREAS, on August 2, 2011, the Corporation approved the certificate of
formation of Lancaster Corridor Redevelopment, LLC for purposes of owning and
operating a portion of the development and the Corporation created the Lancaster
Corridor Redevelopment, LLC on November 4, 2011, for the purpose of ownership and
development of the project;
WHEREAS, on June 5, 2012, the Corporation approved the assignment of all
agreements related to the Lancaster project to the Lancaster Corridor Redevelopment,
LLC;
WHEREAS, Pinnacle Bank desires to purchase a portion of the ground floor of
the mixed use building for retail bank and office use, as well as provide financing for the
project.
NOW, THEREFORE, BE IT RESOLVED that the Corporation hereby authorizes a
loan from Pinnacle Bank for the Lancaster mixed -use project that includes the following
terms and conditions:
The amount of the loan shall be up to not exceed the lesser of (i) the costs to
construct and install tenant improvements necessary for the Leased Premises to be
used as a grocery store or (ii) $450,000.00 of such costs.
The term of the loan shall not exceed twenty (20) years.
The loan shall be interest -free.
RESOLUTION NO. FWLDC-2014-04
PAGE 2
• Oliver's will be required to repay the loan in annual installments in the greater
amount of (i) one hundred percent (100%) of the 380 Grant Payment received in
the same year or (ii) the following minimum amount:
o Years 1-2: $15,000.00
o Years 3-5: $20,000.00
o Years 6-20: $24,000.00
• The Corporation shall have a security interest in the 380 Grant Payments made to
Oliver's and to any equipment (non -fixtures) installed in the Leased Premises
whose costs are included as tenant improvements covered by the loan.
• Sundance West Partners, LP, which owns the Leased Premises, will serve as
guarantor of the loan, as follows:
o To pay any shortfall on the minimum annual installment due in a given
year of the loan term; and
o To repay the loan in full on an accelerated schedule in the event Oliver's
vacates the Leased Premises and the Leased Premises are not used and
operated as a comparable grocery store within twelve (12) months
following such vacation.
FURTHER RESOLVED, that the President or Vice President is hereby
authorized to execute and file a loan agreement between the Corporation and Oliver's,
Inc. and any other related and necessary documents, on terms and conditions acceptable
to and approved by the President and legal counsel for the Corporation; 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.
Adopted this 41h day of June, 2013.
B:
Dennis Shing et
Secretary