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HomeMy WebLinkAboutContract 28494 PURCHASE CONTRACT CITY SECRETARY ('� CONTRACT NO. b THIS PURCHASE CONTRACT ("Contract") is made and entered into by and between the CITY OF FORT WORTH, TEXAS, acting by and through its duly authorized City Manager or Assistant City Manager ("Seller") and FORT WORTH SOUTHSIDE DEVELOPMENT DISTRICT, INC. dba FORT WORTH SOUTH, INC., a Texas non-profit corporation ("Purchaser") as of the date on which this Contract is executed by the last to sign of Seller and Purchaser("Effective Date"). RECITALS 1. Seller is the owner of the approximately 406,166.80 square foot tract of land described as Lot 1A, Block 6R, Mistletoe Heights Addition to the City of Fort Worth, Tarrant County, Texas which is situated at the northeast corner of Forest Park Boulevard and Rosedale Street in Fort Worth, Texas, together with any easements, rights-of-way, licenses, interests, and rights appurtenant thereto (collectively, the "Property"), as shown on the attached Exhibit"A". 2. Purchaser is a non-profit corporation organized to promote the social welfare, within the meaning of Internal Revenue Code Section 501(c)(4), of the people and businesses in the Southside Medical District area of Fort Worth, Texas, by promoting and assisting in the improvement of the economy, employment opportunities, and residential and business quality of life in that area. 3. The Property is located in Tax Increment Reinvestment Zone Number 4, City of Fort Worth, Texas. 4. Seller desires to sell the Property for fair market value for development as a mixed use project that will benefit the surrounding residents and businesses in particular and will benefit the citizens of Fort Worth in general. 5. Purchaser desires to acquire the Property for development as a mixed use project that will benefit the surrounding residents and businesses and will further serve the mission and goals of Purchaser. AGREEMENT In consideration of the mutual covenants in this Contract, Seller and Purchaser agree as follows: Section 1. Sale and Purchase. (a) Seller agrees to sell and convey the Property to Purchaser, and Purchaser agrees to purchase and accept the Property from Seller, for the Purchase Price (as defined below), subject to the terms and conditions set forth in this Contract. O RCS aid G?(�C�0° R ~d FI E�o (b) Seller shall convey the Property to Purchaser free and clear of all liens, claims, easements, rights-of-way, reservations, restrictions, encroachments, tenancies, and any other encumbrances (collectively, the "Encumbrances") except the Encumbrances appearing in the Title Commitment (as defined below in Section 3) that are not cured and that are subsequently waived pursuant to Section 3 below("Permitted Encumbrances"). Section 2. Purchase Price, Independent Contract Consideration, and Earnest Money. (a) The purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller in cash at Closing (defined below), is TWO MILLION THIRTY THOUSAND, EIGHT HUNDRED THIRTY-FOUR DOLLARS ($2,030,834.00), based upon the assumption that the net square footage of the Property is 406,166.80. "Net square footage" means all of the land within the surveyed boundaries of the Property, less any portion of the Property lying within a publicly dedicated roadway or a utility easement. If the Survey determines that the net square footage of the Property is more or less than 406,166.80, the Purchase Price shall be adjusted to equal $5.00 multiplied by the net square footage. Seller has determined that the Purchase Price reflects the current fair market value of the Property. (b) Contemporaneously with the execution of this Contract, Purchaser delivers to Seller a check in the amount of Fifty Dollars ($50.00) ("Independent Contract Consideration"), as independent consideration for Seller's execution, delivery, and performance of this Contract. This Independent Contract Consideration is in addition to and independent of any other consideration or payment provided for in this Contract, is nonrefundable, and shall be retained by Seller notwithstanding any other provision of this Contract. (c) Within five days after the execution and delivery of this Contract by Seller to Purchaser, Purchaser shall deliver to Title Company (as defined below in Section 3) a check payable to the order of Title Company or other means of funding reasonably satisfactory to Seller in the amount of 1% of the Purchase Price ("Earnest Money"). Title Company shall hold the Earnest Money in escrow and deliver it in accordance with the provisions of this Contract. The Title Company shall invest the Earnest Money in an interest bearing account through a bank or other financial institution selected by Purchaser (hereafter, all references in this Contract to Earnest Money include the amount deposited by Purchaser with the Title Company pursuant to this Section 2(c) together with all interest accrued thereon). Section 3. Title Commitment and Survey. (a) Within thirty (30) days after the Effective Date, Purchaser shall obtain, at Purchaser's sole cost and expense (i) an Owner's Commitment for Title Insurance ("Title Commitment") from Alamo Title Company, 3500 Hulen Street, Fort Worth, TX 76107-6898 ("Title Company"), setting forth the status of the title of the Property and showing all Encumbrances and other matters, if any, relating to the Property; and (ii) a legible copy of all documents referred to in the Title Commitment, including but not limited to, plats, reservations, restrictions, and easements. (b) Within ten (10) days after the Effective Date of this Contract, Seller shall provide to Purchaser a copy of any survey of the Property in Seller's possession. Within forty-five (45) days after the Effective Date, Purchaser may obtain, at Purchaser's sole cost and expense, an - 2 - updated survey ("Survey") consisting of a plat and field notes describing the Property, prepared pursuant to a current on-the-ground staked survey performed by a registered public surveyor or engineer satisfactory to Purchaser and Title Company. The Survey shall (i) be certified to Purchaser, its successors and assigns, and Title Company, (ii) reflect the actual dimensions of and the total number of square feet within the Property, net of any portion thereof lying within a publicly dedicated roadway or a utility easement, (iii) identify any rights-of-way, easements, or other Encumbrances by reference to applicable recording data, and (iv) include the Surveyor's registered number and seal, the date of the Survey, and the following narrative certificate: The undersigned certifies to Fort Worth South, Inc. and to Alamo Title Company that (x) this Survey was made upon the ground of the property reflected hereon on [date of survey], (xx) the description contained hereon and the location of all rights-of-way, easements, set-back lines, improvements and encroachments which are either visible or are of record in Tarrant County, Texas are accurately reflected hereon (including, without limitation, all matters set forth in title commitment #02-1012022 issued by Alamo Title Company dated September 19, 2002, (xxx) the property reflected hereon has access to and from a publicly dedicated roadway as shown hereon, (xxxx) no part of the property lies within a 100 year flood plain as defined by the U.S. Department of Housing and Urban Development pursuant to the Flood Disaster Act of 1973, as amended, or by any other governmental agency or authority, (xxxxx) except as shown hereon there are no easements, set-back lines, encroachments, or improvements and (xxxxxx) this survey was conducted in accordance with the standards for a Category 1A, Urban, Condition II survey as specified by the latest edition of the Manual of Practice for Land Surveying in Texas. The description of the Property prepared as a part of the Survey will be used in all of the documents set forth in this Contract that require a description of the Property. (c) If the Title Commitment or Survey discloses any Encumbrances or other matters which are not acceptable to Purchaser in Purchaser's sole discretion, then Purchaser shall give Seller written notice thereof within fifteen (15) days after receipt of the Title Commitment, Survey and all documents referred to in the Title Commitment, specifying Purchaser's objections ("Objections"), if any. If Purchaser gives such notice to Seller, Seller shall use its best efforts to cure the Objections, but shall be under no obligation to do so. (d) If Purchaser gives notice of Objections and Seller does not cure the Objections, cause the Title Commitment and Survey to be amended to give effect to matters that are cured, and give Purchaser written notice thereof within the fifteen (15) day period following receipt of the notice from Purchaser ("Cure Period"), Purchaser shall have the right either (i) to terminate this Contract by giving written notice thereof to Seller at any time after the expiration of such Cure Period but prior to the expiration of the Option Period, and, upon such termination, Purchaser shall be entitled to the return of the Earnest Money, and neither party hereto shall have any further rights or obligations, or (ii) to waive the Objections and consummate the purchase of the Property subject to the Objections which shall be deemed to be Permitted Encumbrances. Notwithstanding the foregoing sentence, if Seller has commenced curing the Objections and is diligently prosecuting the same, as determined by Purchaser in Purchaser's sole discretion, then - 3 - Purchaser in Purchaser's sole discretion may extend the Cure Period for an amount of time Purchaser deems necessary for Seller to cure the same. Section 4. Review Reports. Within twenty (20) days after the Effective Date, Seller shall deliver to Purchaser for Purchaser's review any environmental reports and studies in Seller's possession concerning the Property ("Reports") that were conducted during or after the demolition of the former improvements on the Property. Section 5. Option Period. (a) Notwithstanding anything to the contrary contained in this Contract, until ninety (90) days after the Effective Date ("Option Period"), the following is a condition precedent to Purchaser's obligations under this Contract: Purchaser being satisfied in Purchaser's sole and absolute discretion that the Property is suitable for Purchaser's intended uses, including, without limitation, Purchaser being satisfied with the results of the Tests (defined in Section 6 below). (b) If Purchaser is not satisfied in Purchaser's sole and absolute discretion as to the condition precedent described in Section 5(a) above, Purchaser may give written notice thereof to Seller on or before the end of the Option Period, whereupon this Contract shall terminate. Upon such termination, Purchaser shall be entitled to the return of the Earnest Money, and neither party shall have any further rights or obligations under this Contract. (c) If Purchaser does not terminate this Contract prior to the expiration of the Option Period, then the Earnest Money shall become non-refundable to Purchaser except in the event of Seller's default in the performance of Seller's obligations under this Contract, and Title Company shall release the Earnest Money to Seller at any time thereafter upon request by Seller. (d) The provisions of this Section 5 control all other provisions of this Contract. Section 6. Tests. Purchaser, at Purchaser's sole cost and risk, shall have the right to go on to the Property, including the Improvements, to make inspections, surveys, test borings, soil analyses, and other tests, studies and surveys, including without limitation, environmental tests, borings, analyses, and studies ("Tests"). Purchaser shall provide Seller with a copy of any written reports related to Tests of the physical condition of the Property that Purchaser and its consultants conduct on the Property. If the sale of the Property is not consummated pursuant to this Contract, Purchaser shall restore the surface of the Property to as near as practicable the condition existing prior to any entry by Purchaser. Section 7. Closing Continzencies. (a) The closing ("Closing") of the sale of the Property by Seller to Purchaser shall occur through the office of the Title Company on or before thirty (30) days after the satisfaction of the following contingencies to Closing ("Closing Contingencies"), but not later than March 31, 2004. The Closing Contingencies are as follows: -4 - (1) Purchaser having obtained all necessary municipal approvals for rezoning of the Property to Planned Development Special Use - Mixed Use —2 with site plan(PDSU -MU-2); (2) Purchaser having obtained all necessary approvals for the Property to be designated as a Neighborhood Empowerment Zone by the City of Fort Worth; (3) Purchaser having obtained all necessary approvals of a replat of the Property, together with the adjacent property owned by Valentin Gracia, MD (Lots 2A, 2B, and 4A, Block 1, McAnulty & Nesbitt Subdivision to the City of Fort Worth, Tarrant County, Texas), to include the possible vacation of public streets and rights-of-way within the perimeter of the Property; (4) Purchaser and Seller having agreed upon the location of a sanitary sewer easement to be dedicated to Seller, at no cost to Seller, located on or adjacent to the Property; (5) Purchaser and Seller having agreed upon either a slope easement along the northwest boundary of the Property or a retaining wall system in lieu of a slope easement; (6) Purchaser having obtained sufficient commitments from projected users of the Property so as to make the mixed use project plan feasible; and (7) In compliance with Section 272.001 of the Texas Local Government Code, Purchaser shall include the development of the Property under a project plan adopted by the Seller for the reinvestment zone. (b) Purchaser agrees to pursue the approvals and agreements described in the Closing Contingencies above with reasonable diligence. Seller agrees to cooperate fully with Purchaser in connection with Purchaser's pursuit of the above approvals. If Purchaser determines that construction, improvement, or extension of Jerome Street or any other public street within the Property is required for Purchaser's development, Purchaser agrees that Purchaser will not request an enhanced Community Facilities Agreement from Seller; however, Purchaser may pursue a standard Community Facilities Agreement with Seller. _ (c) If these Closing Contingencies are not satisfied to Purchaser's satisfaction so that Purchaser is prepared to close on or before September 30, 2003, then Purchaser must either (1) terminate this Contract, and upon the termination, Seller shall retain the Earnest Money and any interest earned and neither party will have any further rights or obligations hereunder, or (2) extend the period for Closing until on or before March 31, 2004. To extend the period for Closing, Purchaser must give Seller written notice of the extension on or before September 30, 2003 and must deposit with Title Company an additional 1% of the Purchase Price ("Additional Earnest Money") which shall become non-refundable to Purchaser except in the event of Seller's default in the performance of Seller's obligations under this Contract. At Seller's request, Title Company shall release the Additional Earnest Money to Seller. Furthermore, beginning October 1, 2003 and continuing until the date of Closing, the Purchase Price shall accrue interest at an annual rate of 10%, with this accrued interest to be added to the Purchase Price at Closing. If the - 5 - Closing occurs, the Earnest Money and the Additional Earnest Money will be applied to the Purchase Price. If the Closing does not occur for any reason other than an event of Seller's default in the performance of Seller's obligations under this Contract, then Seller shall retain the initial Earnest Money, the Additional Earnest Money, and all interest accrued on Earnest Money from October 1, 2003 until the date this Contract is terminated. Section S. Closing. (a) At the Closing, all of the following shall occur, all of which are deemed concurrent conditions: (1) Seller, at Seller's sole cost and expense, shall deliver or cause to be delivered to Purchaser the following: (i) a Special Warranty Deed ("Deed"), fully executed and acknowledged by Seller, conveying to Purchaser good and indefeasible fee simple title to the Property subject only to the Permitted Encumbrances, with the precise form of the Deed to be determined pursuant to Section 10 below; (ii) Any other instrument or document necessary for Title Company to issue the Owner Policy in accordance with Section 8(a)(3)below. (2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be delivered to Seller through the Title Company federally wired funds or a certified or cashier's check or such other means of funding acceptable to Seller, in an amount equal to the Purchase Price, adjusted for closing costs and prorations. (3) Title Company shall issue to Purchaser, at Purchaser's sole cost and expense, an Owner Policy of Title Insurance ("Owner Policy") issued by Title Company in the amount of the Purchase Price insuring that, after the completion of the Closing, Purchaser is the owner of indefeasible fee simple title to the Property, subject only to the Permitted Encumbrances, and the standard printed exceptions included in a Texas Standard Form Owner Policy of Title Insurance; provided, however, the printed form survey exception shall be limited to "shortages in area," the printed form exception for restrictive covenants shall be deleted except for those restrictive covenants that are Permitted Encumbrances, there shall be no exception for rights of parties in possession, and the standard exception for taxes shall read: "Standby Fees and Taxes for [the year of Closing] and subsequent years, and subsequent assessments for prior years due to change in land usage or ownership"; (4) The Earnest Money (including any Additional Earnest Money) shall be applied to the Purchase Price at Closing. (5) Seller and Purchaser shall each pay their respective attorneys' fees and Purchaser shall be responsible for all of the escrow and recording fees. - 6 - i i I (b) Ad valorem and similar taxes and assessments, if any, relating to the Property shall be prorated between Seller and Purchaser as of the Closing Date, based on estimates of the amount of taxes that will be due and payable on the Property during the calendar year in which the Closing occurs. As soon as the amount of taxes and assessments on the Property for that year is known, Seller and Purchaser shall readjust the amount of taxes to be paid by each party with the result that Seller shall pay for any taxes and assessments applicable to the Property up to and including the date of Closing, and Purchaser shall pay for those taxes and assessments applicable to the Property after the Closing. The provisions of this Section 8(b) survive the Closing. (c) Upon completion of the Closing, Seller shall deliver possession of the Property to Purchaser, free and clear of all tenancies of every kind. Section 9. Agents. Seller and Purchaser each represent and warrant to the other that it has not engaged the services of any agent, broker, or other similar party in connection with this transaction. Section 10. Closing Documents. No later than fifteen (15) days prior to the Closing Date, Seller shall deliver to Purchaser a copy of the Deed, which is subject to Purchaser's reasonable right of approval. Section 11. Notices. (a) Any notice under this Contract shall be in writing and shall be deemed to have been served if(i) delivered in person to the address set forth below for the party to whom the notice is given, (ii) delivered in person at the Closing (if that party is present at the Closing), (iii) placed in the United States mail, return receipt requested, addressed to such party at the address specified below, (iv) deposited into the custody of Federal Express Corporation to be sent by FedEx Overnight Delivery or other reputable overnight carrier for next day delivery, addressed to the party at the address specified below, or (v) telecopied to the party at the telecopy number listed below, provided that the transmission is confirmed by telephone on the date of the transmission. (b) The address of Seller under this Contract is: City of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Attention: Tom Higgins Telephone: 817-871-6192 (c) The address of Purchaser under this Contract is: Fort Worth Southside Development District, Inc. 1606 Mistletoe Boulevard Fort Worth, Texas 76104 Attention: Donald W. Scott, President Telephone: (817) 923-1649 Teeecopy: (817) 923-1658 - 7- (d) From time to time either party may designate another address or telecopy number under this Contract by giving the other party advance written notice of the change. Section 12. Termination,Default, and Remedies. (a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant to this Contract at the Closing for any reason other than termination of this Contract by Purchaser pursuant to a right so to terminate expressly set forth in this Contract or Seller's failure to perform Seller's obligations under this Contract, then Seller, as Seller's sole and exclusive remedy, shall have the right to terminate this Contract by giving written notice thereof to Purchaser prior to or at the Closing, whereupon neither party hereto shall have any further rights or obligations hereunder, and Title Company shall deliver the Earnest Money, the Additional Earnest Money, and the interest accrued on the Purchase Price (as set forth in Section 7(c) above) to Seller as liquidated damages, free of any claims by Purchaser or any other person with respect thereto. It is agreed that the Earnest Money, Additional Earnest Money, and the interest on the Purchase Price to which the Seller is entitled hereunder is a reasonable forecast of just compensation for the harm that would be caused by Purchaser's breach and that the harm that would be caused by such breach is one that is incapable or very difficult of accurate estimation, and that the payment of these sums upon such breach shall constitute full satisfaction of Purchaser's obligations hereunder. (b) If Seller fails or refuses to consummate the sale of the Property pursuant to this Contract at Closing or fails to perform any of Seller's other obligations hereunder either prior to or at the Closing for any reason other than the termination of this Contract by Seller pursuant to a right so to terminate expressly set forth in this Contract or Purchaser's failure to perform Purchaser's obligations under this Contract, then Purchaser shall have the right (i) to enforce specific performance of Seller's obligations under this Contract, (ii) to terminate this Contract by giving written notice thereof to Seller prior to or at the Closing whereupon the Earnest Money shall be returned to Purchaser and neither party hereto shall have any further rights or obligations hereunder, or (iii) to exercise any other right or remedy Purchaser may have at law or in equity by reason of such default, including but not limited to, the recovery of attorneys' fees incurred by Purchaser in connection therewith. (c) If either Seller or Purchaser becomes entitled to the Earnest Money upon cancellation of this Contract in accordance with its terms, Purchaser and Seller covenant and agree to deliver a letter of instruction to the Title Company directing disbursement of the Earnest Money to the party entitled thereto. Section 13. Entire Contract. This Contract (including the attached exhibits) contains the entire contract between Seller and Purchaser, and no oral statements or prior written matter not specifically incorporated herein is of any force and effect. No modifications are binding on either parry unless set forth in a document executed by that party. Section 14. Assigns. This Contract inures to the benefit of and is binding on the parties and their respective legal representatives, successors, and assigns. Neither party may assign its interest under this Contract without the prior consent of the other party. - 8 - Section 15. Time for Execution. If Seller has not executed and returned a fully executed copy of this Contract to Purchaser by 5:00 p.m., Fort Worth, Texas time on March 31, 2003, this Contract shall be null and void. Section 16. Time of the Essence. Time is of the essence under this Contract. Section 17. Taking Prior to Closing. If, prior to Closing, the Property or any portion thereof becomes subject to a taking by virtue of eminent domain, Purchaser may, in Purchaser's sole discretion, either (i) terminate this Contract whereupon the Earnest Money shall be returned to Purchaser, and neither party shall have any further rights or obligations hereunder, or (ii) proceed with the Closing of the transaction with an adjustment in the Purchase Price to reflect the net square footage of the Property after the taking. Section 18. Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Texas. Section 19. Performance of Contract. The obligations under the terms of the Contract are performable in Tarrant County, Texas, and any and all payments under the terms of the Contract are to be made in Tarrant County, Texas. Section 20. Venue. Venue of any action brought under this Contract shall be in Tarrant County, Texas if venue is legally proper in that county. Section 21. Severability. If any provision of this Contract is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. Section 22. Business Days. If the Closing date or the day for performance of any act required under this Contract falls on a Saturday, Sunday, or legal holiday, then the Closing date or the day for such performance, as the case may be, shall be the next following regular business day. Section 23. Counterparts. This Contract may be executed in multiple counterparts, each of which will be deemed an original, but which together will constitute one instrument. - 9 - This Contract is executed as of the Effective Date. SELLER: CITY OF FORT WORTH By: Name: f e/o R1 acrooc Title: A s s-•. C f TV da;13. Date: 3 Z 7 0. d; - 0515 — A t contract huthorization 1 ,1 163 Date -- — � Gloria Pear n City Secre ty Approved a to Legality and Form AssistarifCity Attorney PURCHASER: FORT WORTH SOUTHSIDE DEVELOPMENT DISTRICT, INC. dba FORT WORTH SOUTH,INC. By: a) onald W. Scott, President Date: 3-CZ( °-©.5 By its execution below, Title Company acknowledges receipt of the Earnest Money described in this Contract and agrees to hold and deliver the same and perform its other duties pursuant to the provisions of this Contract. TITLE COMPANY: ALAMO TITLE COMPANY By: Name: Title: Date: 5 FRINAL Gt ON@ - 1 o - Off KCAI'[� ARY r"It WC01 11 "IX EXHIBIT "A" Description of Property Lot 1, Block 6-R, Mistletoe Heights Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded in Volume 388-160, Page 42, Plat Records, Tarrant County, Texas, SAVE AND EXCEPT that portion conveyed to the State of Texas by deed recorded in Volume 14173, Page 409, Deed Records, Tarrant County, Texas. FW SOUTH--PUR...RTY 3-25-03.DOC City of Fort Worth, Texas "agor and Council DATE REFERENCE NUMBER LOG NAME PAGE 3/18/03 **L-13515 17SOUTH 1 of 2 SUBJECT AUTHORIZE THE SALE OF CITY-OWNED PROPERTY TO FORT WORTH SOUTH, INC. IN ACCORDANCE WITH SECTION 272 OF THE TEXAS LOCAL GOVERNMENT CODE RECOMMENDATION: It is recommended that the City Council 1. Authorize the City Manager to execute an option agreement to sell property located at the northeast corner of Forest Park Boulevard and Rosedale Street to Fort Worth South, Inc. in accordance with Chapter 272 of the Texas Local Government Code; and 2. Authorize the City Manager to execute an appropriate deed conveying the property to Fort Worth South, Inc. and record the deed, if the terms of the option agreement are satisfied. DISCUSSION: The City owns approximately 9.324 acres of property located at the northeast corner of Forest Park Boulevard and Rosedale Street. In 1997, the Southside Tax Increment Finance (TIF) District No. 4 approved a plan to redevelop the district. The plan includes the,redevelopment of this property as a high priority for the Southside TIF. Fort Worth, Inc., whose mission is to implement the TIF project plan, has submitted a development proposal for the property. The proposal calls for a mixed-use development consisting of a hotel, retail, office, structured parking, residential and a major anchor totaling 337,000 square feet, with total project costs of over $27 million. The development will also accommodate a minimum 25 foot permanent sanitary sewer easement, at no cost to the .City, for the relocation of sanitary sewer main C1 C4B at a location satisfactory to the City. To facilitate construction of this line, the developer will make available an additional 25 foot wide temporary construction easement. Additional conditions of the sale are outlined in the option agreement as follows: • Purchase price: If the developer closes on or before September 30, 2003, the developer will pay the City the fair market value of$5.00 a square foot. There are approximately 406,166.8 square feet; therefore,,the purchase price would be $2,030,834. Should the developer not close on or before September 30, 2003, the purchase price of the property shall increase by an interest rate of 10% per annum calculated from October 1, 2003, through the closing date. If closing does not occur before the expiration of the option agreement, the developer forfeits the right to close and shall pay the City an amount equal to 10% interest on the purchase price calculated from October 1, 2003, through March 31, 2004; and • Option fee: The developer shall pay the City an option fee of 1% of the purchase price ($20,308.34) due upon execution of the agreement. The 1% option fee becomes nonrefundable 90 days after execution of the agreement. If the developer closes on or before September 30, 2003; the 1% option fee shall be applied to the purchase price. If the developer does not close on or before September 30, 2003, the developer agrees to pay the City an additional 1% for a total option fee of 2% of the purchase price ($40,616.68). The 2% option fee is nonrefundable, but will be applied to the purchase price if closing occurs before the expiration of the option agreement; and City of.Fort Worth, Texas agor and Council COMM U171*CaPon DATE REFERENCE NUMBER LOG.NAME PAGE 3/18/03 **L-13515 17SOUTH 2 of 2 SUBJECT AUTHORIZE THE SALE OF CITY-OWNED PROPERTY TO FORT WORTH SOUTH, INC. IN ACCORDANCE WITH SECTION 272 OF THE TEXAS LOCAL GOVERNMENT CODE • Rezoning the property to "Planned Development/Special Use-Mixed-Use 2 with site plan"; and • Replat the property and vacate internal public streets and rights-of-way, as needed; and If needed, improve and extend Jerome Street at no cost to the City; and Dedicate right-of-way and construct internal streets, as needed, to serve the development at no cost to the City; and a Convey a sanitary sewer easement and a slope easement, or have one conveyed that meets the satisfaction of the City, at no cost to the City; and Amend; or have amended the Southside TIF project and, if appropriate, finance plan to include the project. The City will apply all applicable incentives as allowable under the Neighborhood Empowerment Zone designation for the Magnolia Village area. The proceeds from this sale will be deposited into the Capital Projects Reserve Fund. This property is located in COUNCIL DISTRICT 8, Mapsco 76K, Magnolia Village Neighborhood Empowerment Zone. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Engineering Department, Real Property Services Division, is responsible for the collection and deposit of funds from this sale. RR:k Submitted for City Manager's FUND ACCOUNT CENTER I AMOUNT CITY SECRETARY Office by: (to)' GC10 444552 013010001000 $2,030,834.00 Reid Rector 6140 Originating Department Head: Tom Higgins 6192 (from) APPROVED 3/18/03 Additional Information Contact: Ardina Washington 8003