HomeMy WebLinkAboutContract 34468-A1 CONTRACT NO,. l
STATE OF TEXAS §
COUNTY OF TARRANT §
AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 34468
TAX ABATEMENT AGREEMENT BETWEEN
CITY OF FORT WORTH AND LANCASTER AVENUE, LTD.
This AMENDMENT NO. 1 TO CITY SECRETARY CONTRACT NO. 34468
("Amendment") is entered into by and between the CITY OF FORT WORTH (the "City"), a
home rule municipality organized under the laws of the State of Texas and acting by and through
Tom Higgins, its duly authorized Assistant City Manager, and LANCASTER AVENUE, LTD.
("Developer"), a Texas limited partnership acting by and through J. Waymon Levell, President
of LT Real Estate Corporation, a Texas corporation and Developer's sole general partner.
The City and Developer hereby agree that the following statements are,true and correct
and constitute the basis upon which the City and Developer have entered into this Amendment:
A. The City and Developer previously entered into that certain Tax Abatement
Agreement on file in the City Secretary's Office as City Secretary Contract No. 34468 (the
"Agreement"). The Agreement requires Developer to expend at least $1,500,000.00 in
Construction Costs to renovate and redevelop a deteriorating commercial and retail shopping
center (the "Required Improvements") on the Land subject to Abatement, as specifically set
forth in Exhibit "D" of the Agreement. In return, Developer is eligible to receive a ten (10)-year
Abatement on the Land and any improvements located thereon, including the Required
Improvements. The Agreement requires that the Completion Date (as defined in the Agreement)
for the Required Improvements must occur by December 31, 2008 (the "Completion
Deadline").
B. Developer has requested that the Completion Deadline be extended due to
unforeseen delays in constructing the Required Improvements. Developer has also requested
that additional improvements be included as part of the Required Improvements that Developer
is obligated to construct. Due to the economic and other public benefits that will accrue from
completion of the Required Improvements, the City is willing to amend the Agreement to
accommodate Developer's requests.
C. This Amendment is authorized under § 312.208 of the Texas Tax Code because
(i) the provisions of this Amendment could have been included in the original Agreement and (ii)
this Amendment has been entered into following the same procedure in which the Agreement
was approved and executed.
NOW, THEREFORE, the City and Developer, for and in consideration of the terms and
conditions set forth herein. do hereby contract. covenant and agree as follows:
Page I r-t.-
Tax Abatement Agreement between
City of Fort Worth and Lancaster Avenue. Ltd.
r
1. Exhibit "D" of the Agreement (Required Improvements) is hereby deleted in its entirety
and replaced with Exhibit "D-111, attached hereto and hereby made a part of this Amendment
and the Agreement for all purposes.
2. The second sentence of Section 1.2 of the Agreement (Completion of Required
Improvements) is hereby amended to read as follows:
Developer covenants and agrees that the Completion Date shall occur by
December 31, 2009, unless delayed because of Force Majeure, in which case the
December 31, 2009 date shall be extended by the number of days comprising the
specific Force Majeure (the "Completion Deadline").
3. Capitalized terms used but not identified in this Amendment shall have the same meanings
assigned to them in the Agreement.
4. Except as otherwise specifically amended in this Amendment, the Agreement shall remain
in full force and effect.
5. This Amendment contains the final written expression of the City and Developer with
respect to the subject matter hereof. This Amendment may be executed in multiple counterparts,
each of which shall be considered an original, but all of which shall constitute one instrument.
EXECUTED as of the last date indicated below:
[SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE]
CITY OF FORT WORTH: APPROVED AS TO FORM AND LEGALITY:
By: J By:
Tom Higgins Peter Vaky
Assistant City Manager Assistant City Attorney
Date: �Z�Z9�og M & C: C-2325 IZ-l6 -� �
ATTEST:
By:
City Secretary
Page 2
Tax Abatement Agreement between
City of Fort Worth and Lancaster Avenue, Ltd.
LANCASTER AVENUE,LTD:
By: LT Real Estate Corporation,
a Texas corporation and its
sole enera p ner:
By:
a Leve 1
Preside
:J
t
Date C
ATTEST:
By: iA-
Page 3
Tax Abatement Agreement between
City of Fort Worth and Lancaster Avenue, Ltd.
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Tom
Higgins, Assistant City Manager of the CITY OF FORT WORTH, a municipal
corporation organized under the laws of the State of Texas, known to me to be the person
and officer whose name is subscribed to the foregoing instrument, and acknowledged to me
that the same was the act of the CITY OF FORT WORTH, that he was duly authorized to
perform the same by appropriate resolution of the City Council of the City of Fort Worth
and that he executed the same as the act of the CITY OF FORT WORTH for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 36 t4 day of
2008.
Notary Public in and for ROSEUq BARNES
* " MY COMMISSION EXPIRES
the State of Texas March 31 2009
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared J.
Waymon Levell, President of LT Real Estate Corporation, the sole general partner of
LANCASTER AVENUE, LTD. known to me to be the person whose name is subscribed
to the foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as the act
and deed of LANCASTER AVENUE, LTD.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this
day of 2008.
Notary Public in and for
the State of Texas =DE:BBIE OBBS(VSN lic rae 607-2011
Notary's Printed Name
Amen dment No. I to CSC No. 34468
Exhibit D-1
Required Improvements
The Required Improvements consists of the renovation of approximately 42,000 square
feet of retail space including the construction of a new commercial use on the site of a
former Grandy's restaurant. The use will be consistent with current zoning classification.
See attached map.
A Temporary Certificate of Occupancy issued by the City of Fort Worth will act as the
required proof of completion for the following Required Improvements.
1. Renovation of approximately 39,000 square feet of the Oakland Corners
Shopping Center located at 4217 E. Lancaster.
2. Construction of a new commercial use of approximately 3,500 square feet on the
former Grandy's site located at 4233 E. Lancaster.
3. At Developer's option, the Required Improvements may also include the
demolition of an existing 2,500 square foot Laundromat building located at 4235
E. Lancaster.
Oakland Corners
Oakland
Corners
Oakland Shopping Center
4217 E. Lancaster
Approximately 39,000 Square Feet
j
Laundromat
Grandy's Out-Parcel 4235 E. Lancaster
4233 E. Lancaster Approximately 2,500 Square Feet
Approximately 3,500 Square Feet
TE
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Pagel of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 12/16/2008
DATE: Tuesday, December 16, 2008
LOG NAME: 170AKCORNERSAMD REFERENCE NO.: C-23254
SUBJECT:
Authorize Amendment to City Secretary Contract No. 34468, a Tax Abatement Agreement with
Lancaster Avenue, Ltd., Relating to Redevelopment of Individual Buildings within the 4200 Block of
East Lancaster in the Oakland Corners Urban Village
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to execute an amendment to City
Secretary Contract No. 34468, a Tax Abatement Agreement with Lancaster Avenue, Ltd., for the
redevelopment of individual buildings within the 4200 block of East Lancaster at the northeast intersection
of Oakland Boulevard and East Lancaster Avenue in the Oakland Corners Urban Village.
DISCUSSION:
On August 29, 2006, the City Council authorized the execution of a ten year Tax Abatement Agreement
(Agreement) with Lancaster Avenue, Ltd., (Developer) for the redevelopment of a 42,000 square foot
shopping center located at the 4200 block of East Lancaster (M&C C-21645; City Secretary Contract No.
34468). The Agreement provides that the Developer will invest $1.5 million into the renovation of the 42,000
square foot Oakland Shopping Center located at the 4200 block of East Lancaster. In addition, the
Agreement provides that the Developer will cause the construction on the former Grandy's out-parcel pad
site of an approximately 3,500 square foot building for commercial and/or retail (Commercial Improvement)
use as evidenced by a temporary Certificate of Occupancy no later than December 31, 2008.
Due to unforeseen delays in obtaining the former Grandy's out-parcel and the downturn of economic market
conditions the required improvements will not be completed by December 31, 2008. To date, the Developer
has invested approximately $1.5 million in the redevelopment project. Therefore, staff recommends the
following two amendments to the Agreement:
1. Extend the completion deadline to December 31, 2009; and
2. Accept a revised scope of work for the Commercial Improvements to include the demolition, if necessary,
of a dilapidated 2,500 square foot building on the site and an increase in size of the aggregate Commercial
Improvements from 3,500 to 5,500 square feet.
If a temporary Certificate of Occupancy is not issued by December 31, 2009, the Developer will not be
entitled to the tax abatement benefit and the Agreement will terminate.
This project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 12/30/2008
Page 2 of 2
The Financial Management Services Director certifies that this action will have no material effect on City
funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Tom Higgins (6192)
Originating Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Information Contact: Dolores Garza (2639)
http://apps.cfwnet.org/council_packet/Reports/mc_print.asp 12/30/2008