HomeMy WebLinkAboutContract 24290 ' C [TY SEC-F-i-EFARY
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DEVELOPMENT-CORPORZAT?ON
September 29, l998
8|r� Bob Terrell
City MumuAcr
Ckvof Fort Worth
)000ThrookmortnuStreet
Fort Worth,Texas 76102
Re: Memorandum of Understanding between Hillwood Development Corporation ("Hillwood") and the
City of Fort Worth ('^Eod Worth") concerning the conditions to u LJnikbmm Wholesale Water
Contract for Water Services between the Town of Westlake("Westlake")and Fort Worth.
Dear Mr. Terrell:
This letter sets forth the 8cuonz| terms and conditions under which [ud Worth will eobr into u \9bo|osde
Water Contract with Westlake. These terms and conditions are set out below.
I Wholesale Water Contract. Fn/1 Worth will enter into u L6nifbnn Wholesale Water
Contract(the"Contract")with Wcg/ubc.
2Financial Obligations. Bi||rvood will fund the following capital costs which Fort Worth
has incurred or will incur in association with its obligation to provide water to YVcai|mkc
under the Contract (estimated to he $10,100,000). The financial obligations include the
following:
A. Prepayment of Impact Fees: A payment nf$2,O0O,0O8 will bc made to Fort Worth
by Hillwood upon execution of the Contract, which contract will be enter into on or
hcfhrc January |, 1999. This puymoui represents u prcpo}vnoot by Hill*xood of
future Impact Fees to be churuod under the terms of the Contract and in connection
with the development ofthe Circle TRancb. 8i)|p/ood or its assigns will o:ouivm a
credited for future impact fees due under the Contract.
B. Water Facility Cost: Forth Worth will make the necessary
improvements to its
water system to provide the additional capacity to service the Town of Westlake,
Fort Worth and 8d]wnmd will enter into a Capital Cost Contract (^^CCA^°) to fund
these coats. In addition to the $2,00,00paynient set out io 2A. above, the balance
of the cost($0,}O0,0OO)will he funded um follows-
Years | - 5 $290`805
Years 6-25 $645,374
"/wozu -16-3O $346,409
L36OOUun�rPo�h�u . �o/cr200 ~ FouV&'nk.�*u�7W7? 224bOOO ~ [ax (0i7) 224'6Jh0
Letter to Mr. Bob Terrell
Memorandum of Understanding—Uniform Wholesale Water Contract for Water Services
September Z8` l998 Page 2of2
If this letter accurately expresses our mutual understanding, please execute it in the spaces provided below.
Sincerely,
Ui||wood Development Corporation
Acknowledged and Agre d.
Ci/vof Fort Worth
By: Date
Approved as to F mUty:
Wade Adkins
City Attorney
D BY
Contract Author'[z,
Date
Capital Improvements to FW System
for Town of Westlake
Capital Cost Estimate: $10J00:1000
Pre-Paid Impact Fees: 2,000,000)
Balance: 8J0000
Two Financings:
1. YRS. 1-25 $4.05 mil. 6% = $298,885/yr.
2. YRS. 6-30 $4.695 mil.* g 6% = $346,489/yr.
(* $4.05 mil. escalated at 3% for 5 years.)
Payment Flow:
Pre-Paid Impact Fees $2,000,000 $ 211000i000
Payments Years 1-5 $ 298,885 1,494,425
Payments Years 6-25 $ 645,489 12,1909,780
Payments Years 26-30 $ 346,489 1,731445
Total Payments SMJ36,650