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HomeMy WebLinkAboutContract 62077CSC No. 62077 MASTER DEVELOPMENT AGREEMENT This Master Development Agreement ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS, a home -rule municipality organized under the laws of the State of Texas ("City"), and GOLDENROD SERVICES, LLC, a Nebraska limited liability company ("Developer"). RECITALS A. Developer is a national real estate development company focused on projects in growing markets with the central United States and has participated in dozens of mixed -use projects and public -private partnerships. B. Developer and City desire for Developer to develop property located on two separate blocks, the first being located at the northwest corner of West Seventh Street and Foch Street ("Van Zandt Site") and the other being located at the northeast corner of University Drive and Bledsoe Street ("One University Site") (collectively, the "Sites"). C. At a minimum, the Developer will expend or caused to be expended at least $145 million in Total Construction Costs on the Van Zandt Site as follows: (i) 95,000 square feet of new office space; (ii) 10,000 square feet of new retail space; (iii) 226 new multi -family units; (iv) 500 space parking garage ("Van Zandt Garage"); and (v) certain other improvements that are necessary to physically and functionally serve and support the construction and operation of the Van Zandt Site ("Van Zandt Required Improvements"). D. At a minimum, the Developer will expend or caused to be expended at least $255 million in Total Construction Costs on the One University Site as follows: (i) 100,000 square feet of new office space; (ii) 10,000 square feet of new retail space; (iii) 240 new multi -family units; (iv) 175 room full -service hotel; (v) 744 space parking garage ("One University Garage"); and (vi) certain other improvements that are necessary to physically and functionally serve and support the construction and operation of the One University Site ("One University Required Improvements"). E. Upon Substantial Completion of the Van Zandt Required Improvements and One University Required Improvements (collectively, "Required Improvements"), respectively, the Developer, as declarant, will establish (or cause an Affiliate to establish) a condominium regime of ownership for the Van Zandt Garage ("Van Zandt Condo") and One University Garage ("One University Condo") (collectively, "Condominiums" and convey or ensure the conveyance of the Van Zandt Garage and One University Garage (collectively, "Parking Garages") to the City. F. Upon acquisition of each of the Parking Garages, the City will then enter into (i) an agreement with Developer to operate and maintain the One University Parking Garage in substantially the form attached hereto as Exhibit A attached hereto and (ii) an agreement with Developer to operate and maintain the Van Zandt Parking Garage in substantially the form attached hereto as Exhibit A attached hereto. G. City and Developer will enter into (i) an economic development program agreement in substantially the form attached hereto as Exhibit B attached hereto, that will, among other things, OFFICIAL RECORD MASTER DEVELOPMENT AGREEMENT CITY SECRETARY Page t of 15 FT. WORTH, TX provide for up to fifteen (15) annual grants to Developer in exchange for the construction of the One University Required Improvements and conveyance of the One University Parking Garage and (ii) an economic development program agreement in substantially the forin attached hereto as Exhibit B attached hereto, that will, among other things, provide for up to fifteen (15) annual grants to Developer in exchange for the construction of the Van Zandt Required Improvements and conveyance of the Van Zandt Parking Garage. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. INCORPORATION OF RECITALS. The Parties agree that the recitals set forth above are true and correct and form the basis upon which the Parties have entered into this Agreement. To the extent the terms of this Agreement conflict with the terms of any later -executed agreement executed between the Parties related to this Development, then the terms of the later -executed agreement will govern. 2. DEFINITIONS. In addition to terms defined in the body of this Agreement, the following terms have the definitions ascribed to them as follows: "380 Agreement" means an economic development program agreement authorized under Chapter 380 of the Texas Local Government Code and approved by the Fort Worth City Council to incentivize and facilitate the Development. "Affiliate" means all entities, incorporated or otherwise, under common control with, controlled by or controlling Developer. For purposes of this definition, "control" means more than fifty percent (50%) of the ownership determined by either value or vote. "Annual Grant" means the economic development program grant set forth in Section 5.13. "BEF Construction Spending Commitment" has the meaning ascribed to it in Section 3.A(iii). "Business Equity Firm(s)" ("BEF") has the meaning assigned to it in the City of Fort Worth's Business Equity Ordinance (Chapter 20, Article X of the City Code, as amended). "Certification Deadlines" has the meaning ascribed to it in the Section 5.A. "Condominiums" has the meaning ascribed to it in the Recitals. "Declaration" has the meaning ascribed to it in Section 4.A. MASTER DEVELOPMENT AGREEMENT Page 2 of 15 "Development" means the Development of the Sites as contemplated in this Agreement. "Event of Default" has the meaning ascribed to it in Section 7.A. and other sections of the Agreement where an event of default is cited. "Fair Market Value" has the meaning ascribed to in Section 4.13. "Force Majeure" means an event beyond the Parties' reasonable control, including, without limitation, acts of God, fires, strikes, national disasters, wars, riots, material or labor restrictions, delays caused by unforeseen structural issues, weather delays, epidemics, pandemics, governmental moratoriums, injunctions or other legal proceedings brought by third parties, unreasonable delays by the City in issuing any permits, consents or certificates of occupancy or conducting any inspections of or with respect to the Required Improvements, delays caused by unforeseen construction or site issues (which does not include delays due to purely financial matters involving the Developer, such as, without limitation, delays in obtaining adequate financing). "Hard Construction Costs" means the aggregate of the payments to the general contractor for the construction of the Required Improvement, including general contractor's and its subcontractors' direct costs and fees and general contractor's and its subcontractors' Soft Construction Costs. However, "Hard Construction Costs" excludes (i) utility infrastructure costs, and (ii) any "Hard Cost Contingency" under the general contractor construction contract to the extent not allocated to the general contractor as of the Completion Date. "O&M Agreement" has the meaning ascribed in Section 6.A. of this Agreement. "One University Certification Deadline" has the meaning ascribed to it in Section 5.A. "One University Completion Date" means the date as of which Substantial Completion of the One University Required Improvements has been achieved. "One University Completion Deadline" means June 30, 2028. "One University Condo" has the meaning ascribed to it in the Recitals. "One University Garage" has the meaning ascribed to it in the Recitals. "One University Site" has the meaning ascribed to it in the Recitals. "One University Required Improvements" has the meaning ascribed to it in the Recitals. "Parking Garages" has the meaning ascribed to it in the Recitals with such specifications that satisfy the requirements set forth in the 380 Agreement. MASTER DEVELOPMENT AGREEMENT Page 3 of 15 "Parking Garages Grant" means the economic development program grant set forth in Section 4.13. "Parking Garages Purchase Options" has the meaning ascribed to it in Section "Parking Garages Put Options" has the meaning ascribed to it in Section 4.13. "Parking Garages Purchase Price" has the meaning ascribed to in Section 4.B. "Party" or "Parties" means the Developer and City, or their successors and/or assigns under this Agreement, individually or collectively. "Program Grants" means the Parking Garages Grant and the Annual Grant, and such other economic development program grants credited or payable to the Developer per the terms of this Agreement, a 380 Agreement, or the O&M Agreement. "Program Grant Amount" means the amount of each of the Program Grants, individually or collectively, as the case may be. "Required Improvements" has the meaning ascribed to it in the Recitals "Required Improvements Completion Conditions" has the meaning ascribed to it in Section 5.A. "Soft Construction Costs" means all costs that do not involve the physical construction of the Required Improvements. "Sites" has the meaning ascribed to it in the Recitals. "Substantial Completion" means that a final or temporary certificate of occupancy has been issued for all of the applicable Required Improvements. "Total Construction Costs" means the aggregate of Hard Construction Costs, Soft Construction Costs, and all other costs expended for the Required Improvements including, without limitation, the following: engineering fees; architectural and design fees; real estate commissions; costs of third -party consultants, including attorneys and environmental consultants; developer fees; zoning fees; permit fees; marketing costs; insurance; taxes; financing costs, including loan fees and capitalized interest; and FF&E. "Van Zandt Certification Deadline" has the meaning ascribed to it in Section 5.A. "Van Zandt Completion Date" means the date as of which Substantial Completion of the Van Zandt Required Improvements has been achieved. "Van Zandt Completion Deadline" means June 30, 2027. "Van Zandt Condo" has the meaning ascribed to it in the Recitals. MASTER DEVELOPMENT AGREEMENT Page 4 of 15 "Van Zandt Garage" has the meaning ascribed to it in the Recitals. "Van Zandt Site" has the meaning ascribed to it in the Recitals. "Van Zandt Required Improvements" has the meaning ascribed to it in the Recitals. 3. DEVELOPMENT OF SITES A. Construction of the Required Improvements. (i) Van Zandt Site. On or before the Van Zandt Completion Deadline, Developer must (1) Substantially Complete the Van Zandt Required Improvements and (2) expend or cause to be expended at least $145,000,000 in Total Construction Costs for the Van Zandt Required Improvements, of which (i) at least $90,000,000 must be expended on Hard Construction Costs. (ii) One Universitv Site. On or before the One University Completion Deadline, Developer must (1) Substantially Complete the One University Required Improvements and (2) expend or cause to be expended at least $255,000,000 in Total Construction Costs for the Van Zandt Required Improvements, of which (i) at least $155,000,000 must be expended on Hard Construction Costs. (iii) Developer must expend or caused to be expended at least 15% of Hard and Soft Construction Costs with Business Equity Firms on the Van Zandt Site by the Van Zandt Completion Deadline and on the One University Site by the One University Completion Deadline, respectively ("BEF Construction Spending Commitment"). 4. CONVEYANCE OF PARKING GARAGES A. Convevance of Parking Garages. Within ninety (90) days following Substantial Completion of the Van Zandt Required Improvements and the One University Required Improvements, as applicable, Developer will create the Van Zandt Condominium and One University Condominium and convey or ensure the conveyance to the City of the Parking Garages. The Condominiums will be created in accordance with terms to be agreed to by the Parties, and any proposed Condominium Declaration ("Declaration(s)") must be submitted to the City for review and approval. B. Options to Purchase and Put. The conveyance documents for the Parking Garages will include, among other things, options to purchase in favor of the Developer and put options in favor of the City. (i) Options to Purchase. The Developer will have the right to purchase each of the Parking Garages after Substantial Completion of each of the respective Required Improvements ("Parldng Garages Purchase Options"). MASTER DEVELOPMENT AGREEMENT Page 5 of 15 (ii) Put Options. On or after the 15th year after Substantial Completion of each of the respective Parking Garages, the City will have the right to put each of the Parking Garages to Developer ("Parking Garages Put Options"). (iii) Purchase Price. 1. If the Developer or City exercises either of their respective options set forth above, then the purchase price for each of the Parking Garages will equal the sum of subsections (a) and (b) below ("Parking Garages Purchase Price"): (a) The greater of (i) the fair market value of the applicable Parking Garages or (ii) $100. Fair market value will be determined by an appraisal from an independent third -party appraiser obtained by the City and approved by Developer ("Fair Market Value"). (i) Any difference between the Fair Market Value and $100 will be credited or paid to Developer by City as a separate, standalone economic development program grant ("Parking Garages Grant"), such that Developer's out-of-pocket cost for each of the Parking Garages is a maximum of $100, plus the amount set forth below in Section 4(13)(iii)(1)(b). In the event that Fair Market Value of each of the Parking Garages is less than $100, the City will not owe such difference to Developer. (b) The difference between the (i) total amount of Annual Grants paid by the City and (ii) eighty-five percent (85%) of the combined incremental revenues from the City's ad valorem taxes and 1 % City sales tax from the Site on which the individual Parking Garages are located up to the year in which the City conveys the applicable Parking Garage pursuant to the Parking Garages Purchase Options and the Parking Garages Put Options. If the sum difference between (i) and (ii) is a positive amount, then the resulting balance will be added to the Parking Garages Purchase Price and will not be included as part of the Parking Garages Grant. However, if the sum difference between (i) and (ii) is a negative amount, then the resulting number will not be included in the Parking Garages Purchase Price. (i) For purposes of calculating the incremental tax revenues from the Sites, the base year will be 2023. MASTER DEVELOPMENT AGREEMENT Page 6 of 15 ANNUAL GRANTS. A. Completion Conditions. (i) Van Zandt. No later than one hundred twenty (120) days from the date the City receives from Developer a final and complete notice of Substantial Completion of the Van Zandt Required Improvements ("Van Zandt Certification Deadline"), the City will issue Developer a certificate to certify whether the Developer has (a) Substantially Completed all of the Van Zandt Required Improvements; (b) met the applicable BEF Construction Spending Commitment; (c) created the Van Zandt Condo through the adoption of one or more Declarations; and (d) met all other applicable terms and conditions set forth in any related agreements between the Parties, including, without limitations, the 380 Agreement (collectively, "Van Zandt Required Improvements Completion Conditions"). (ii) One University. No later than one hundred twenty (120) days from the date the City receives from Developer a final and complete notice of Substantial Completion of the One University Required Improvements ("One University Certification Deadline"), the City will issue Developer a certificate to certify whether the Developer has (a) Substantially Completed all of the One University Required Improvements; (b) met the applicable BEF Construction Spending Commitment; (c) created the One University Condo through the adoption of one or more Declarations; and (d) met all other applicable terms and conditions set forth in any related agreements between the Parties, including, without limitations, the 380 Agreement (collectively, "One University Required Improvements Completion Conditions"). B. Annual Grants. If the Developer has met all of the Van Zandt Required Improvements Completion Conditions in a timely manner, then the Developer will be entitled to receive fifteen (15) Annual Grants of $745,125.00 each for a total amount not to exceed $11,176,881.00. If the Developer has met all of the One University Required Improvements Completion Conditions in a timely manner, then the Developer will be entitled to receive fifteen (15) Annual Grants of $1,310,392.00 each for a total amount not to exceed $19,655,894.00. The first year in which the Developer will be eligible to receive an Annual Grant is the 2027 tax year. (i) If the Developer fails to meet the BEF Construction Spending Commitment, this will not be a default under this Agreement or the 380 Agreement, but the Annual Grant will be reduced by an aggregate of ten percent (10%). 6. OPERATIONS AND MAINTENANCE AGREEEMNT. A. Operations and Maintenance Agreement. Contemporaneously with the conveyance of each of the applicable Parking Garages, the City and Developer will enter into an Operations and Maintenance Agreement for each of the Parking Garages, as applicable ("O&M Agreement"). MASTER DEVELOPMENT AGREEMENT Page 7 of 15 (i) Term. The term of the O&M Agreement will be coterminous with the 380 Agreement. (ii) Fees. City will not be obligated, at any time, to pay Developer any fees or payments with respect to the O&M Agreement. However, the Developer will pay the City an annual amount equal to 50% of any net parking revenues. (iii) Parkine Garages. The Developer will be responsible for any and all costs and activities associated with the maintenance and operation of the Parking Garages. (iv) Spaces. The spaces within the Parking Garages allocated to the office component must be available for use by the public during non -business hours, with the understanding that Developer may charge an hourly parking fee. 7. DEFAULTS: REMEDIES. TERMINATION. A. Events of Default. Except as may be agreed to otherwise in this Agreement or a related Agreement for the Required Improvements (including, but not limited to, 380 Agreements and O&M Agreement), a Party will be in default if any of the following events ("Event of Default") occurs: (i) The failure on the part of the Party to pay an amount when due and owing under this Agreement and the continuation of such failure for thirty (30) days after written notice has been provided in accordance with this Agreement; and (ii) Any other breach of any covenant or provision of this Agreement for which the non -breaching Party has given written notice and for which the breaching Party has, within 30 days of such notice, not either (i) effected a cure or (ii) commenced to remove or cure such breach and is diligently pursuing same. B. Termination Risht in Favor of Developer. In the event Developer (a) elects not to move forward with one or both of the Developments contemplated herein as a result of (i) issues discovered after the date hereof with respect to the feasibility of the Development on the Sites, (ii) costs of the Required Improvements, or (iii) Developer's failure to obtain necessary financing for the Development(s) and Developer notifies the City in writing of its decision to not move forward with one or both of the Developments, then Developer will have the option, in its reasonable discretion, to terminate, or partially terminate as to the Development that Developer elects not to move forward, this Agreement and all other agreements arising from this Agreement, without the payment of a fee or penalty and without the expectation that Developer will be entitled to any remuneration from the City for any costs or expenses incurred by Developer related in any way to the Development, the same being specifically waived and released by the Developer. 8. MISCELLANEOUS. A. During the term of this Agreement and the 380 Agreement, Developer will not actively solicit for relocation to the Sites any office tenant that is then located within the corporate boundaries of the City of Fort Worth. This excludes instances of direct inquiry to MASTER DEVELOPMENT AGREEMENT Page 8 of 15 Developer by such tenants and any referral of such tenants to Developer by outside agencies or other organizations. Developer will employ a good faith effort to promote for lease its available office space to prospective tenants that are located outside of the corporate boundaries of the City of Fort Worth. B. During the term of this Agreement and the 380 Agreement, Developer will not lease any retail space to a freestanding bar or nightclub (defined as a facility selling only alcohol beverages). This commitment will not apply to any other form of alcohol service or bar that is physically located within or operated in direct association with any hotel or restaurant that is located on the Sites. 9. ASSIGNMENT OF AGREEMENT. A. Developer may not sell, assign, transfer, or otherwise convey any of its rights or obligations under this Agreement, either in whole or in part, prior to the One University Completion Date or Van Zandt Completion Date, as applicable, except to an Affiliate of Developer; provided, however. Developer may collaterally assign this Agreement to any mortgagee. B. After the One University Completion Date or Van Zandt Completion Date, as applicable, Developer may assign, transfer, or otherwise convey any of its rights or obligations under this Agreement, either in whole or in part, to any entity that acquires all or a portion of the Sites without the consent of the City; for all other assignments, the consent of City is required, such consent not to be unreasonably withheld, conditioned or delayed. C. Notwithstanding anything to the contrary, any assignment expressly requiring City's consent will require the execution of a consent to assignment between Developer, its assignee, and City, which consent will not be unreasonably withheld, conditioned or delayed. Such consent may be granted administratively by City. 10. NOTICES. All written notices called for or required by this Agreement must be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, electronic transmittal or by hand delivery: City: City of Fort Worth Attn: City Manager 200 Texas Street Fort Worth, TX 76102 Developer: Goldenrod Services, LLC Attn: Zachary Wiegert 14606 Branch Street, Suite 100 Omaha, NE 68154 MASTER DEVELOPMENT AGREEMENT Page 9 of 15 with copies to: with copies to: City Attorney at the same address Goldenrod Companies Attn: Kendra Ringenberg 14606 Branch Street, Suite 100 Omaha, NE 68154 and the following: City of Fort Worth Attn: Director Economic Development Department 1150 South Freeway 7550 Fort Worth, TX 76104 11. GENERAL. A. Rule of Construction. The City and Developer acknowledge that each has reviewed and revised this Agreement and agree that the normal rules of construction to the effect that any ambiguities are to be resolved against the drafting party will not be employed in the interpretation of this Agreement or any amendments or exhibits hereto. B. Authority. Each person executing this Agreement, by execution hereof, represents and warrants that he or she is fully authorized to do so, and that no further action or consent on the part of the party for whom he or she is acting is required to the effectiveness and enforceability of this Agreement against such party following such execution. C. Counterparts. This Agreement may be executed in any number of counterparts, each of which will for all purposes be deemed to be an original, and all of which are identical. D. Applicable Law, Place of Performance. THIS AGREEMENT WILL BE CONSTRUED UNDER AND IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. ALL OF THE OBLIGATIONS CONTAINED HEREIN ARE PERFORMABLE IN TARRANT COUNTY, TEXAS. E. Venue. Venue of any action brought under this Agreement will be in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas, Fort Worth Division. F. Entire Agreement. This Agreement constitutes the entire agreement between the City and Developer as to the specific matters contained herein, and there are no other covenants, agreements, promises, terms, provisions, conditions, undertakings, or understandings, either oral or written, between them other than those set forth in this Agreement, the 380 Agreement or any applicable agreement related to the Development between the Parties. No subsequent alteration, amendment, change, deletion or addition to this Agreement shall be binding upon the City and Developer unless in writing and signed by both the City and Developer. MASTER DEVELOPMENT AGREEMENT Page 10 of 15 G. Readings. The headings, captions, numbering system, etc, are inserted only as a matter of convenience and may under no circumstances be considered in interpreting the provisions of this Agreement. H. Binding Effect. All of the provisions of this Agreement are hereby made binding upon the successors, legal representatives, and assigns of both parties hereto. I. Severabilitv. If any clause or provision of this Agreement is or becomes illegal, invalid or unenforceable because of present or future laws or any rule or regulation of any governmental body or entity, the intention of the parties hereto is that the remaining parts of this Agreement shall not be affected thereby. J. Governmental Powers. By execution of this Agreement, the City does not waive any of its governmental powers or immunities. K. Third Partv Beneficiaries. Nothing contained in this Agreement will be construed so as to confer upon any other party the rights of a third -party beneficiary except rights contained herein for the benefit of any mortgagee of the Development. L. Compliance with Laws, Ordinances, Rules, and Regulations. This Agreement will be subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended. M. No Waiver. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder will not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. N. Interpretation. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement must be interpreted fairly and reasonably, and neither more strongly for or against any party, regardless of the actual drafter of this Agreement. O. Electronic Signatures. This Agreement may be executed by electronic signature, which will be considered as an original signature for all purposes and have the same force and effect as an original signature. For these purposes, "electronic signature" means electronically scanned and transmitted versions (e.g. via pdf file or facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign. P. Prohibition on Bovcottina Energv Companies. Developer acknowledges that, in accordance with Chapter 2276 of the Texas Government Code, the City is prohibited from entering into a contract for goods or services that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the company that it: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of the contract. To the extent that Chapter 2276 of the Government Code is applicable to this Agreement, by signing this Agreement, Developer certifies that Developer's signature provides written verification to the MASTER DEVELOPMENT AGREEMENT Page ll of 15 City that Developer: (1) does not boycott energy companies; and (2) will not boycott energy companies during the term of this Agreement. Q. Prohibition on Discrimination Against Firearm and Ammunition Industries. Developer acknowledges that except as otherwise provided by Chapter 2274 of the Texas Government Code, the City is prohibited from entering into a contract for goods or services that has a value of $100,000 or more that is to be paid wholly or partly from public funds of the City with a company with 10 or more full-time employees unless the contract contains a written verification from the Developer that it: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate during the term of the contract against a firearm entity or firearm trade association. To the extent that Chapter 2274 of the Government Code is applicable to this Agreement, by signing this Agreement, Developer certifies that Contractor's signature provides written verification to the City that Developer: (1) does not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association; and (2) will not discriminate against a firearm entity or firearm trade association during the term of this Agreement. R. No Bovcott of Israel. If Developer has fewer than 10 employees or this Agreement is for less than $100,000, this section does not apply. Developer acknowledges that in accordance with Chapter 2271 of the Texas Government Code, the City is prohibited from entering into a contract with a Developer for goods or services unless the contract contains a written verification from the Developer that it: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the contract. The terms "boycott Israel" and "company" has the meanings ascribed to those terms in Section 2271 of the Texas Government Code. By signing this Agreement, Developer certifies that Developer's signature provides written verification to the City that Developer: (1) does not boycott Israel; and (2) will not boycott Israel during the term of the Agreement. [The remainder of this page is intentionally left blank; signature pages to follow.] MASTER DEVELOPMENT AGREEMENT Page 12 of 15 IN WITNESS HEREOF, the parties hereto have executed this Agreement to be effective as of the date of the last signature of the parties. City of Fort Worth: By: William Johnson (O t3,202410:19CDT) William Johnson Assistant City Manager Date: Oct 3, 2024 Goldenrod Services, LLC, A Nebraska limited liabili company N . Za har� A. Wiegert / Date_ Ao B 11 Ix I� W 1 FOR CITY OF FORT WORTH INTERNAL PROCESSES: Approval Recommended: Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting By:RobeAug 28, 202417:30 CDT) requirements. Name: Robert Sturns Title: Director, Economic Development 'M—4-11/--+�y By. Michael Hen nig/AjIg 28, 203417:02 CDT) Approved as to Form and Legality: Name: Michael Hennig Title: Manager, Economic Development c��i 9 .d 40naLy Bye City Secretary: pFFoRt��dd Od Name: Tyler F. Wallach Title: Assistant City Attorney p°d * nE�o Aq dQa45.Ogo'` John Strong, in place of Tyler By. n Contract Authorization: Name: Jannette Goodall M&C: 23-0857 (October 17, 2023) Title: City Secretary Form 1295:2023-1071900 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX MASTER DEVELOPMENT AGREEMENT Page 13 of 15 Exhibit B Form of 380 Grant Agreement MASTER DEVELOPMENT AGREEMENT Page 15 of 15 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT This Economic Development Program Agreement ("Agreement") is entered into by and between the City of Fort Worth ("City"), a home rule municipality organized under the laws of the State of Texas, and Goldenrod Services, LLC, a Nebraska limited liability company or an Affiliate ("Developer"). RECITALS 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 Agreement: A. Developer is a national real estate development company focused on projects in growing markets with the central United States and has participated in dozens of mixed -use projects and public -private partnerships. B. Developer intends to develop the northwest corner of West Seventh Street and Foch Street ("Van Zandt Site"), as more specifically described in Exhibit "A". C. At a minimum, the Developer will expend or caused to be expended at least $145 million in Construction Costs on the Van Zandt Site as follows: (i) 95,000 square feet of new office space; (ii) 10,000 square feet of new retail space; (iii) 226 new multi -family units; (iv) 500 space parking garage ("Van Zandt Garage"); and (v) certain other improvements that are necessary to physically and functionally serve and support the construction and operation of the Van Zandt Site ("Required Improvements"). D. Upon Substantial Completion of the Required Improvements, Developer, as declarant, will establish (or cause an Affiliate to establish) a condominium regime of ownership for the Van Zandt Garage ("Condominium") to the City. E. The Required Improvements and Developer's operations thereon will benefit the City by increasing the scope of an important commercial operation in the City with significant opportunities for employment and tax base growth. F. As recommended by the City's 2023 Comprehensive Plan, adopted by the City Council pursuant to Ordinance No. 26050-03-2023 ("Comprehensive Plan"), and in accordance with the City of Fort Worth's Economic Development Program Policy ("Policy"), the City has established an economic development program pursuant to which the City will, on a case -by -case basis, offer economic incentives authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants of public money, as well as the provision of personnel and services of the City, to businesses and entities that the City Council determines will promote state or local economic development and stimulate business and commercial activity in the City in return for verifiable commitments from such businesses or entities to cause specific employment and other public benefits to be made or invested in the City ("3 80 Program"). EDPA between City of Font Worth and Goldenrod Services 1 of 13 G. The feasibility of the proposed Required Improvements described herein is contingent on Developer's receipt of the Program Grants, as provided in this Agreement. H. The development and use of the Required Improvements will benefit and stimulate the local economy and that the 380 Program is an appropriate means to achieve this project. I. The potential economic benefits that will accrue to the City are consistent with the City's economic development objectives, as outlined in the Comprehensive Plan. J. This Agreement is authorized by Chapter 380 of the Texas Local Goverrnnent Code. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. Incorporation of Recitals. The City Council has found, and the City and Developer hereby agree, that the recitals set forth above are -true and correct and form the basis upon which the parties have entered into this Agreement. 2. Definitions. In addition to other terms defined in the body of this Agreement, the following terms will have the definitions ascribed to them as follows: 380 Program has the meaning ascribed to it in the Recitals. Affiliate means all entities, incorporated or otherwise, under common control with, controlled by or controlling the Developer. For purposes of this definition, "control" means more than fifty percent (50%) of the ownership determined by either value or vote. Business Eauitv Firm (`BEF") has the meaning assigned to it in the City of Fort Worth's Business Equity Ordinance (Chapter 20, Article X of the City Code), as amended. Completion Date means the date as of which all of the Required Improvements have been completed and all occupiable space within the Required Improvements has received a temporary or permanent certificate of occupancy. Completion Deadline means June 30, 2027. Comptroller means the Texas Comptroller for Public Accounts. Construction Costs means the aggregate of Hard Construction Costs and the following costs directly expended for the Required Improvements: engineering fees; architectural and design fees; real estate commissions; costs of third -party consultants, including attorneys and environmental consultants; developer fees; zoning fees; insurance and taxes directly related to the EDPA between City of Fort Worth and Goldenrod Services 2 of 13 construction of the Required Improvements; and financing costs, including capitalized interest and FF&E. For removal of doubt, property acquisition costs do not constitute "Construction Costs." Director means the director of the City's Economic Development Department or that person's authorized designee. Hard Construction Costs means the aggregate of the payments to the general contractor for the construction of the Required Improvements, including general contractor's and its subcontractors' direct costs and fees and general contractor's and its subcontractors' Soft Construction Costs. However, "Hard Construction Costs" excludes (i) utility infrastructure costs, and (ii) any "Hard Cost Contingency" under the general contractor construction contract to the extent not allocated to the general contractor as of the Completion Date. Program Can means eleven million one hundred seventy-six thousand eight hundred eighty-one dollars and 00/100 ($11,176,881.00), which is the aggregate amount of Program Grants that the City is obligated to pay under this Agreement Program Grants means the annual economic development grants in the amount of seven hundred forty-five thousand, one hundred twenty-five dollars and 00/100 ($745,125.00) paid by the City to Developer in accordance with this Agreement and as part of the 380 Program. Second Operatina Year means the twelve-month period starting on the first June 1 following the date in which the Completion Date occurred (for illustration purposes only, (i) if the Completion Date occurs on May 15, 2027, then the Second Operating Year would be June 1, 2027 to May 31, 2028 and if the Completion Date occurs on June 15, 2027, then the Second Operating Year would be June 1, 2028 to May 31, 2029). Twelve -Month Period means the period between January 1 of a given year and December 31 of the following year. 3. Term. This Agreement will be effective as of , which is the date on which the City Council approved this Agreement ("Effective Date"), and, unless terminated earlier pursuant to and in accordance with this Agreement, will expire on the date as of which the City has paid all Program Grants required hereunder "Term"). 4. Developer Obligations and Commitments. a. Use of Development Site. From the Completion Date until expiration of the Term of this Agreement, Developer must maintain the Van Zandt Site in a form and of a use generally consistent with and satisfying the minimum commitments of the Required Improvements. b. Required Improvements. By the Completion Date, Developer must expend or cause to be expended at least one hundred forty-five million dollars and 00/100 ($145,000,000.00) in Hard Construction Costs on the Required Improvements for the Van EDPA between City of Fort Worth and Goldenrod Services 3 of 13 Zandt Site. The Completion Date must occur on or before the Completion Deadline (collectively, "Real Property Commitment"). C. BEF Commitment. On or before the Completion Date, Developer must expend or cause to be expended at least fifteen percent (15%) of all Construction Costs for the Required Improvements with BEFs, regardless of the total amount of such Construction Costs (`BEF Construction Spending Commitment"). d. Reports. i. Ouarterly Reports. From the Effective Date until the Completion Date, Developer must provide the Director with a calendar -year, quarterly report in a form reasonably acceptable to the Director that specifically outlines (i) the then - current aggregate Construction Costs expended for the Required Improvements; and (ii) the then -current aggregate Construction Costs expended with BEFs for the Required Improvements. I Final Construction Report. Within sixty (60) calendar days following the Completion Date, in order for the City to assess whether the Real Property Commitment and the applicable BEF Construction Spending Commitment have been met, Developer must provide the Director with a report in a form reasonably acceptable to the Director that specifically outlines (i) the total Construction Costs expended or caused to be expended for the Required Improvements as of the Completion Date and (ii) the total Construction Costs expended or caused to be expended with BEFs for the Required Improvements as of the Completion Date, together with supporting invoices and other documents necessary to demonstrate that such amounts were actually paid, including, without limitation, final lien waivers signed by the general contractor for the Required Improvements. iii. Performance by Affiliates. The City will accept performance of any obligations set forth in this Section by an Affiliate of Developer, with the understanding that Developer will be responsible for preparing and providing all reports required hereunder, including the assembly of and access by the City to any data or information of an Affiliate that is reflected in any such report. iv. Additional Information. Developer agrees to provide the City with any additional information that the Director may reasonably require to ascertain Developer's compliance with this Agreement and to assist the City in properly calculating Program Grants payable in accordance with this Agreement. e. At no time during the term of the Agreement shall any Officer or employee of Developer actively solicit for relocation to the Van Zandt Site any office tenant that is then located within the corporate boundaries of the City of Fort Worth. For avoidance of doubt, this requirement shall exclude instances of direct inquiry to Developer by such tenants and shall exclude any referral of such tenants to Developer by outside agencies or EDPA between City of Fort Worth and Goldenrod Services 4 of 13 other organizations. Developer will employ a good faith effort to promote for lease its available office space to prospective tenants that are located outside of the City of Fort Worth. Although the City may, on a case by case basis and at its sole discretion, consider offering separate incentives to a prospective tenant to secure their relocation to Fort Worth, at no time will any such incentives be based on the incremental property or sales taxes generated by the Required Improvements. f. Inspections of Van Zandt Site. Subject to the right of any tenants or occupants of the improvements on the Van Zandt Site, at any time during Developer's normal business hours throughout the Tenn and following reasonable advance notice to Developer (but no more frequently than two times per calendar year), the City will have the right to inspect and evaluate the Van Zandt Site and any improvements thereon, including the Required Improvements, and Developer must provide reasonable access to the same, in order for the City to monitor compliance with the terms and conditions of this Agreement. Developer will reasonably cooperate with the City during any such inspection and evaluation. Notwithstanding the foregoing, Developer will have the right to require that any representative of the City be escorted by a representative or security personnel of Developer during any such inspection and evaluation. g. Audits. The City will have the right, at its expense, to audit (i) the financial and business records of Developer or any Affiliate that directly relate to Construction Costs expended for the Required Improvements for a period of three (3) years after the Completion Date and (ii) any other documents necessary to evaluate Developer's compliance with this Agreement or with the commitments set forth in this Agreement during the Term of this Agreement and for a period of three (3) years thereafter (collectively "Records"). Developer must make all Records available to the City on the Van Zandt Site or at another location in the City with reasonable advance notice that is acceptable to both parties. Developer will otherwise reasonably cooperate with the City during any audit assuming that reasonable advance notice acceptable to both parties has been provided. This section will survive the expiration or early termination of this Agreement. 5. Certificate of Completion. Within ninety (90) calendar days following receipt by the City of the final construction spending report for the Required Improvements and assessment by the City of the information contained therein, if the City is able to verify attainment of the Real Property Commitment, the Director will issue Developer a certificate stating the amount of Construction Costs expended for the Required Improvements and the amount of Construction Costs expended specifically with BEFs ("Certificate of Completion"). The Certificate of Completion will serve as the basis for determining the extent to which the BEFs Construction Spending Commitment was met. 6. Prop -ram Grants. a. Generallv. EDPA between City of Fort Worth and Goldenrod Services 5 of 13 i. As more specifically set forth herein, if the Developer meets the Real Property Commitment in a timely manner, Developer will be entitled to receive fifteen (15) annual Program Grants, payment of which will begin in the Second Operating Year. ii. Notwithstanding anything to the contrary herein, aggregate program grants payable under this Agreement will be subject to and will not exceed the applicable Program Cap. 1. Van Zandt Garage Grant. If Developer exercises its option to purchase the Van Zandt Garage contained in a separate Purchase and Sale Agreement between the parties and there is a difference between the fair market value of the Van Zandt Garage and $100, such difference will be credited or paid to Developer by City as an economic development program grant ("Van Zandt Garage Grant"). The Van Zandt Garage Grant will not count toward the Program Cap. b. Non-apnronriation of Funds. In the event no funds or insufficient funds are appropriated by City in any fiscal period for any payments due hereunder, City will notify Vendor of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds have been appropriated. C. Program Can. If, in any Program Year, the amount of the Program Grant calculated in accordance with this Agreement would cause aggregate Program Grants paid by the City to exceed the Program Cap, the amount of the Program Grant payable in that Program Year will be limited to equal only the difference between the aggregate amount of all Program Grants previously paid and the Program Cap amount, in which case, upon payment of such Program Grant, this Agreement will expire automatically. d. Deadline for Pavments and Source of Funds. i. The first Program Grant payable hereunder will be paid by the City on or before first day of the Second Operating Year. ii. Each subsequent annual Program Grant payment will be made by the City to Developer on or before June 1 of the year in which such payment is due. iii. It is understood and agreed that all Program Grants paid pursuant to this Agreement will come from currently available general revenues of the City and not directly from ad valorem taxes on the Van Zandt Site or improvements thereon that are received by the City. EDPA between City of Fort Worth and Goldenrod Services 6 of 13 iv. Developer understands and agrees that any revenues of the City other than those dedicated for payment of a given annual Program Grant pursuant to and in accordance with this Agreement may be used by the City for any lawful purpose that the City deems necessary in the carrying out of its business as a home - rule municipality and will not serve as the basis for calculating the amount of any future Program Grant or other obligation to Developer. 7, Default, Termination, and Failure by Developer to Meet Deadlines and Commitments. a. Failure to Meet Real Property Commitment. Notwithstanding anything to the contrary herein, the City will have the right to terminate this Agreement upon provision of written notice to Developer, without further obligation to Developer hereunder, if the Real Property Commitment has not been met. Upon written notice, Developer will have 90 days after receipt of written notice from the City to meet the obligations under the Real Property Commitment, as applicable, or this Agreement will be terminated. b. Failure to Meet BEF Construction SDendina Commitment. If the Developer fails to meet the BEF Construction Spending Commitment such failure does not give the City the right to terminate this Agreement, but, rather, will only cause a reduction proportionate to the percentage by which the Developer failed to meet the BEF Construction Spending Commitment; provided, however, such proportionate reduction of the 380 Grant payments shall be capped at ten percent (10%) of the annual Program Grant in the aggregate. C. Failure to Use Van Zandt Site for the Proiect. If Developer fails to maintain the Van Zandt Site in a form and of a use generally consistent with and satisfying the minimum commitments of the Required Improvements for more than thirty (30) consecutive calendar days at any time during the Term of this Agreement for any reason (other than on account of Developer's temporary displacement caused by a casualty to such location and resulting ongoing repairs or restoration to that location necessitated by such casualty), Developer will be in default under this Agreement and the City will have the right to terminate this Agreement following provision of notice and opportunity to cure in accordance with Section. d. Failure to Submit ReDorts. If Developer fails to submit any report required by and in accordance with this Agreement, the City's obligation to pay any Program Grants at the time, if any, will be suspended until Developer has provided all required reports; provided, however, that if any report required hereunder is delinquent by more than one (1) year, the City will have the right to terminate this Agreement following provision of notice and opportunity to cure in accordance with this Section. e. General Breach. Unless stated elsewhere in this Agreement, Developer will be in default under this Agreement if Developer breaches any term or condition of this Agreement. In the event that such breach remains uncured after thirty (30) calendar days following receipt of written notice from the City referencing this Agreement (or, if EDPA between City of Fort Worth and Goldenrod Services 7 of 13 Developer has diligently and continuously attempted to cure following receipt of such written notice but reasonably requires more than thirty (30) calendar days to cure, then such additional amount of time as is reasonably necessary to effect cure, as determined by both parties mutually and in good faith), the City will have the right to terminate this Agreement immediately by providing written notice to Developer. f. Knowing Emblovrnent of Undocumented Workers. i. Developer acknowledges that the City is required to comply with Chapter 2264 of the Texas Government Code, enacted by House Bill 1196 (80th Texas Legislature), which relates to restrictions on the use of certain public subsidies. Developer hereby certifies thatDeveloper, and any branches, divisions, or departments of Developer, does not and will not knowingly employ an undocumented worker, as that term is defined by Section 2264.001(4) of the Texas Government Code. In the event that Developer, or any branch, division, or department of Developer, is convicted of a violation under 8 U.S.C. Section 1324a(fl (relating to federal criminal penalties and injunctions for a pattern or practice of employing unauthorized aliens): I . if such conviction occurs during the Term of this Agreement, this Agreement will terminate contemporaneously upon such conviction (subject to any appellate rights that may lawfully be available to and exercised by Developer), and Developer must repay, within one hundred twenty (120) calendar days following receipt of written demand from the City, the aggregate amount of the Program Grants received by Developer hereunder, if any, plus Simple Interest at a rate of four percent (4016) per annum; or 2. if such conviction occurs after expiration or termination of this Agreement based on conduct that occurred during the term of this Agreement, subject to any appellate rights that may lawfully be available to and exercised by Developer, Developer must repay, within one hundred twenty (120) calendar days following receipt of written demand from the City, the aggregate amount of the Program Grants received by Developer hereunder, if any, plus Simple Interest at a rate of four percent (4%) per annum. ii. For the purposes of this Section 8.6, "Simple Interest" is defined as a rate of interest applied only to an original value, in this case the aggregate amount of Jobs Grants paid hereunder. This rate of interest can be applied each year, but will only apply to the aggregate amount of Program Grants paid hereunder and is not applied to interest calculated. For example, if the aggregate amount of the Program Grants paid hereunder is $10,000 and such amount is required to be paid back with four percent (4%) interest five years later, the total amount would be $10,000 + [5 x ($10,000 x 0.04)], which is $12,000. This Section 8.6 does not apply to convictions of any subsidiary or affiliate entity of Developer, by any EDPA between City of Fort Worth and Goldenrod Services 8 of 13 franchisees of Developer, or by a person or entity with whom Developer contracts. Notwithstanding anything to the contrary herein, this Section 8.6 will survive the expiration or termination of this Agreement. 8. Independent Contractor. It is expressly understood and agreed that Developer will operate as an independent contractor in each and every respect hereunder and not as an agent, representative or employee of the City. Developer will have the exclusive right to control all details and day-to-day operations relative to the Required Improvements and the Van Zandt Site and any improvements thereon and will be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, licensees and invitees. Developer acknowledges that the doctrine of respondeat superior will not apply as between the City and Developer, its officers, agents, servants, employees, contractors, subcontractors, licensees, and invitees. Developer further agrees that nothing in this Agreement will be construed as the creation of a partnership or joint enterprise between the City and Developer. 9. INDEMNIFICATION.' DEVELOPER, AT NO COST TO THE CITY, AGREES TO DEFEND, INDEMNIFY, AND HOLD THE CITY, ITS OFFICERS, AGENTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES, HARMLESS AGAINST ANYAND ALL CLAIMS, LAWSUITS, ACTIONS, COSTS AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO DEVELOPER'S BUSINESS AND ANY RESULTING LOST PROFITS) AND PERSONAL INJURY, INCLUDING, BUT NOT LIMITED TO, DEATH, THAT MAY RELATE TO, ARISE OUT OF OR BE OCCASIONED BY (i) DEVELOPER'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCONDUCT OF DEVELOPER, ITS OFFICERS, AGENTS, ASSOCIATES, EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR SUBCONTRACTORS, RELATED TO THE VAN ZANDT SITE, OR ANY IMPROVEMENTS THEREON, INCLUDING THEREQUIRED IMPROVEMENTS, OR ANY OTHER NEGLIGENTACT OR OMISSION OF THE DEVELOPER THAT IS RELATED TO THE PERFORMANCE OF THIS AGREEMENT. THE DEVELOPER HAS NO INDEMNIFICATION OBLIGATION BEYOND THAT WHICH IS SET FORTH IN CATEGORIES (i) AND (ii) ABOVE. BY WAY OF EXAMPLE, THE DEVELOPER HAS NO DUTY TO INDEMNIFY THE CITY, ITS OFFICERS, AGENTS, SERVANTS, REPRESENTATIVES OR EMPLOYEES FOR ANY NEGLIGENTACT OR OMISSION OR INTENTIONAL MISCONDUCT OF THE CITY, ITS OFFICERS, AGENTS, SERVANTS, REPRESENTATIVE, OR EMPLOYEES. 10. Notices. All written notices called for or required by this Agreement must be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, electronic transmittal or by hand delivery: City: Developer: City of Fort Worth Goldenrod Services, LLC Attn: City Manager Attn: Zachary A. Wiegert EDPA between City of Fort Worth and Goldenrod Services 9 of 13 200 Texas Street Fort Worth, TX 76102 with copies to: the City Attorney at the same address and the following: City of Fort Worth Attn: Director Economic Development Department 1150 South Freeway Fort Worth, TX 76104 14606 Branch Street, Suite 100 Omaha, NE 68154 with copies to: Goldenrod Companies Attn: Kendra J. Ringenberg 14606 Branch Street, Suite 100 Omaha, NE 68154 kringenberg(& goldenrodcompanies. com 11. Assignment and Successor. Developer may, at any time assign, transfer, or otherwise convey any of its rights or obligations under this Agreement to an Affiliate without the approval of the City so long as Developer and the Affiliate first execute an agreement under which the Affiliate agrees to assume and be bound by all covenants and obligations of Developer under this Agreement and a copy of such agreement is provided to the City. Otherwise, Developer may not assign, transfer or otherwise convey any of its rights or obligations under this Agreement to any other person or entity without the prior consent of the City Council, which consent will not be unreasonably withheld, conditioned on (i) the prior approval of the assignee or successor and a finding by the City Council that the proposed assignee or successor is financially capable of meeting the terms and conditions of this Agreement and (ii) prior execution by the proposed assignee or successor of a written agreement with the City under which the proposed assignee or successor agrees to assume and be bound by all covenants and obligations of Developer under this Agreement. Any attempted assignment without the City Council's prior consent will constitute grounds for termination of this Agreement following ten (10) calendar days of receipt of written notice from the City to Developer. Any lawful assignee or successor in interest of Developer of all rights under this Agreement will be deemed "Developer" for all purposes under this Agreement. Notwithstanding anything herein to the contrary, Developer may collaterally assign this Agreement to a mortgagee and, at the request of the Developer, the City agrees to execute a consent to such collateral assignment in a form and substance reasonably acceptable to the City. 12. Compliance with Laws, Ordinances, Rules, and Regulations. This Agreement will be subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended. 13. Governmental Powers. It is understood that by execution of this Agreement, the City does not waive or surrender any of its governmental powers or immunities. 14. No Waiver. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder will not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. EDPA between City of Fort Worth and Goldenrod Services 10 of 13 15. Venue and Choice of Law. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action will lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas — Fort Worth Division. This Agreement will be construed in accordance with the laws of the State of Texas. 16, No Third-Partv Rights. The provisions and conditions of this Agreement are solely for the benefit of the City and Developer, and any lawful assign or successor of Developer, and are not intended to create any rights, contractual or otherwise, to any other person or entity. 17. Interpretation. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement must be interpreted fairly and reasonably, and neither more strongly for or against any party, regardless of the actual drafter of this Agreement. 18. Captions. Captions and headings used in this Agreement are for reference purposes only and will not be deemed a part of this Agreement. 19. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired. 20. Entirety of Agreement. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Developer, and any lawful assign and successor of Developer, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. Notwithstanding anything to the contrary herein, this Agreement may not be. amended unless executed in writing by both parties and approved by the City Council of the City in an open meeting held in accordance with Chapter 551 of the Texas Government Code. 21, Counterparts. This Agreement may be executed in multiple counterparts, each of which will be considered an original, but all of which will constitute one instrument. 22. Electronic Signatures. This Agreement may be executed by electronic signature, which will be considered as an original signature for all purposes and have the same force and effect as an original signature. For these purposes, "electronic signature" means electronically scanned and transmitted versions (e.g. via pdf file or facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign. EDPA between City of Fort Worth and Goldenrod Services 1.1 of 13 EXECUTED as of the last date indicated below: City: By: William Johnson (Olt 3, 202410:19 CDT) Name: William Johnson Title: Assistant City Manager Date: Oct 3, 2024 Developer: Goldenrod Services, LLC By: Nai Date: FOR CITY OF FORT WORTH INTERNAL PROCESSES: Approval Recommended: By: Robert Stu ms (Aug 28,202417:30 CDT) Name: Robert Sturns Title: Director, Economic Development Department Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: Michl Henni g A 28,20 7:02 CDT) ae Approved as to Form and Legality: Name: Michael Hennig Title: Fconomic nevelopmPnt ManagaL By: ? S Name: John B. Strong Title: Senior Assistant City Attorney Contract Authorization: M&C: NA City Secretary: By: Name: Janette S. Goodall Title: City Secretary EDPA between City of Fort Worth and Goldenrod Services 12 of 13 EXHIBIT "A" Description and Map Depictinu the Van Zandt Site EDPA between City of Fort Worth and Goldenrod Services Page 13 of 13 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT This Economic Development Program Agreement ("Agreement") is entered into by and between the City of Fort Worth ("City"), a home rule municipality organized under the laws of the State of Texas, and Goldenrod Services, LLC, a Nebraska limited liability company or an Affiliate ("Developer"). RECITALS 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 Agreement: A. Developer is a national real estate development company focused on projects in growing markets with the central United States and has participated in dozens of mixed -use projects and public -private partnerships. B. Developer intends to develop the northeast corner of University Drive and Bledsoe Street ("One University Site"), as more specifically described in Exhibit "A". C. At a minimum, the Developer will expend or caused to be expended at least $255 million in Construction Costs on the One University Site as follows: (i)100,000 square feet of new office space; (ii) 10,000 square feet of new retail space; (iii) 240 new multi -family units; (iv) 175 room full -service hotel; (v) 744 space parking garage ("One University Garage"); and (vi) certain other improvements that are necessary to physically and functionally serve and support the construction and operation of the One University Site ("Required Improvements"). D. Upon Substantial Completion of the Required Improvements, Developer, as declarant, will establish (or cause an Affiliate to establish) a condominium regime of ownership for the One University Garage ("Condominium") to the City. E. The Required Improvements and Developer's operations thereon will benefit the City by increasing the scope of an important commercial operation in the City with significant opportunities for employment and tax base growth. F. As recommended by the City's 2023 Comprehensive Plan, adopted by the City Council pursuant to Ordinance No. 26050-03-2023 ("Comprehensive Plan"), and in accordance with the City of Fort Worth's Economic Development Program Policy ("Policy"), the City has established an economic development program pursuant to which the City will, on a case -by -case basis, offer economic incentives authorized by Chapter 380 of the Texas Local Government Code that include monetary loans and grants of public money, as well as the provision of personnel and services of the City, to businesses and entities that the City Council determines will promote state or local economic development and stimulate business and commercial activity in the City in return for verifiable commitments from such businesses or entities to cause specific employment and other public benefits to be made or invested in the City ("380 Program"). EDPA between City of Fort Worth and Goldenrod Services 1 of 13 G. The feasibility of the proposed Required Improvements described herein is contingent on Developer's receipt of the Program Grants, a provided in this Agreement. H. The development and use of the Required Improvements will benefit and stimulate the local economy and that the 380 Program is an appropriate means to achieve this project. I. The potential economic benefits that will accrue to the City are consistent with the City's economic development objectives, as outlined in the Comprehensive Plan. J. This Agreement is authorized by Chapter 380 of the Texas Local Government Code. NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. Incorporation of Recitals. The City Council has found, and the City and Developer hereby agree, that the recitals set forth above are true and correct and form the basis upon which the parties have entered into this Agreement. 2. Definitions. In addition to other terms defined in the body of this Agreement, the following terms will have the definitions ascribed to them as follows: 380 Program has the meaning ascribed to it in the Recitals. Affiliate means all entities, incorporated or otherwise, under common control with, controlled by or controlling the Developer. For purposes of this definition, "control" means more than fifty percent (50%) of the ownership determined by either value or vote. Business Equity Firm (`BEF") has the meaning assigned to it in the City of Fort Worth's Business Equity Ordinance (Chapter 20, Article X of the City Code), as amended. Completion Date means the date as of which all of the Required Improvements have been completed and all occupiable space within the Required Improvements has received a temporary or permanent certificate of occupancy. Completion Deadline means June 30, 2028. Comptroller means the Texas Comptroller for Public Accounts. Construction Costs means the aggregate of Hard Construction Costs and the following costs directly expended for the Required Improvements: engineering fees; architectural and design fees; real estate commissions; costs of third -party consultants, including attorneys and environmental consultants; developer fees; zoning fees; insurance and taxes directly related to the EDPA between City of Fort Worth and Goldenrod Services 2 of 13 construction of the Required Improvements; and financing costs, including capitalized interest and FF&E. For removal of doubt, property acquisition costs do not constitute "Construction Costs." Director means the director of the City's Economic Development Department or that person's authorized designee. Hard Construction Costs means the aggregate of the payments to the general contractor for the construction of the Required Improvements, including general contractor's and its subcontractors' direct costs and fees and general contractor's and its subcontractors' Soft Construction Costs. However, "Hard Construction Costs" excludes (i) utility infrastructure costs, and (ii) any "Hard Cost Contingency" under the general contractor construction contract to the extent not allocated to the general contractor as of the Completion Date. Program Cab means nineteen million six hundred fifty-five thousand eight hundred ninety- four dollars and 001100 ($19,655,894.00), which is the aggregate amount of Program Grants that the City is obligated to pay under this Agreement Program Grants means the annual economic development grants in the amount of one million three hundred ten thousand, three hundred ninety-two dollars and 00/100 ($1,310,392.00) paid by the City to Developer in accordance with this Agreement and as part of the 380 Program, Second Operating Year means the twelve-month period starting on the first June 1 following the date in which the Completion Date occurred (for illustration purposes only, (i) if the Completion Date occurs on May 15, 2028, then the Second Operating Year would be June 1, 2028 to May 31, 2029 and if the Completion Date occurs on June 15, 2028, then the Second Operating Year would be June 1, 2029 to May 31, 2030). Twelve -Month Period means the period between January 1 of a given year and December 31 of the following year. 3. Term. This Agreement will be effective as of , which is the date on which the City Council approved this Agreement ("Effective Date"), and, unless terminated earlier pursuant to and in accordance with this Agreement, will expire on the date as of which the City has paid all Program Grants required hereunder "Term"). 4. Developer Obligations and Commitments. a. Use of Development Site. From the Completion Date until expiration of the Term of this Agreement, Developer must maintain the One University Site for in a form and of a use generally consistent with and satisfying the minimum commitments of the Required Improvements. b. Required Improvements: By the Completion Date, Developer must expend or cause to be expended at least one hundred forty-five million dollars and 00/100 ($145,000,000.00) in Hard Construction Costs on the Required Improvements for the One EDPA between City of Fort Worth and Goldenrod Services 3 of 13 University Site. The Completion Date must occur on or before the Completion Deadline (collectively, "Real Property Commitment"). C. BEF Commitment. On or before the Completion Date, Developer must expend or cause to be expended at least fifteen percent (15%) of all Construction Costs for the Required Improvements with BEFs, regardless of the total amount of such Construction Costs (`BEF Construction Spending Commitment"). d. Reports. i. Ouarterly Reports. From the Effective Date until the Completion Date, Developer must provide the Director with a calendar -year, quarterly report in a form reasonably acceptable to the Director that specifically outlines (i) the then - current aggregate Construction Costs expended for the Required Irprovements; and (ii) the then -current aggregate Construction Costs expended with BEFs for the Required Improvements. ii. Final Construction Report. Within sixty (60) calendar days following the Completion Date, in order for the City to assess whether the Real Property Commitment and the applicable BEF Construction Spending Commitment have been met, Developer must provide the Director with a report in a form reasonably acceptable to the Director that specifically outlines (i)-the total Construction Costs expended or caused to be expended for the Required Improvements as of the Completion Date and (ii) the total Construction Costs expended or caused to be expended with BEFs for the Required Improvements as of the Completion Date, together with supporting invoices and other documents necessary to demonstrate that such amounts were actually paid, including, without limitation, final lien waivers signed by the general contractor for the Required Improvements. iii. Performance by Affiliates. The City will accept performance of any obligations set forth in this Section by an Affiliate of Developer, with the understanding that Developer will be responsible for preparing and providing all reports required hereunder, including the assembly of and access by the City to any data or information of an Affiliate that is reflected in any such report. iv. Additional Information. Developer agrees to provide the City with any additional information that the Director may reasonably require to ascertain Developer's compliance with this Agreement and to assist the City in properly calculating Program Grants payable in accordance with this Agreement. e. At no time during the term of the Agreement shall any Officer or employee of Developer actively solicit for relocation to the One University Site any office tenant that is then located within the corporate boundaries of the City of Fort Worth. For avoidance of doubt, this requirement shall exclude instances of direct inquiry to Developer by such tenants and shall exclude any referral of such tenants to Developer by outside agencies or EDPA between City of Fort Worth and Goldenrod Services 4 of 13 other organizations. Developer will employ a good faith effort to promote for lease its available office space to prospective tenants that are located outside of the City of Fort Worth. Although the City may, on a case by case basis and at its sole discretion, consider offering separate incentives to a prospective tenant to secure their relocation to Fort Worth, at no time will any such incentives be based on the incremental property or sales taxes generated by the Required Improvements. f. Inspections of One Universitv Site. Subject to the right of any tenants or occupants of the improvements on the One University Site (including, without limitation, the guests of the hotel, at any time during Developer's normal business hours throughout the Term and following reasonable advance notice to Developer (but no more frequently than two times per calendar year), the City will have the right to inspect and evaluate the One University Site and any improvements thereon, including the Required Improvements, and Developer must provide reasonable access to the same, in order for the City to monitor compliance with the terms and conditions of this Agreement. Developer will reasonably cooperate with the City during any such inspection and evaluation. Notwithstanding the foregoing, Developer will have the right to require that any representative of the City be escorted by a representative or security personnel of Developer during any such inspection and evaluation. g. Audits. The City will have the right, at its expense, to audit (i) the financial and business records of Developer or any Affiliate that directly relate to Construction Costs expended for the Required Improvements for a period of three (3) years after the Completion Date and (ii) any other documents necessary to evaluate Developer's compliance with this Agreement or with the commitments set forth in this Agreement during the Term of this Agreement and for a period of three (3) years thereafter (collectively "Records"). Developer must make all Records available to the City on the One University Site or at another location in the City with reasonable advance notice that is acceptable to both parties. Developer will otherwise reasonably cooperate with the City during any audit assuming that reasonable advance notice acceptable to both parties has been provided. This section will survive the expiration or early termination of this Agreement. 5. Certificate of Completion. Within ninety (90) calendar days following receipt by the City of the final construction spending report for the Required Improvements and assessment by the City of the information contained therein, if the City is able to verify attainment of the Real Property Commitment, the Director will issue Developer a certificate stating the amount of Construction Costs expended for the Required Improvements and the amount of Construction Costs expended specifically with BEFs ("Certificate of Completion"). The Certificate of Completion will serve as the basis for determining the extent to which the BEFs Construction Spending Commitment was met. 6. Proaram Grants. a. Generallv. EDPA between City of Fort Worth and Goldenrod Services 5 of 13 i. As more specifically set forth herein, if the Developer meets the Real Property Commitment in a timely manner, Developer will be entitled to receive fifteen (15) annual Program Grants, payment of which will begin in the Second Operating Year. ii. Notwithstanding anything to the contrary herein, aggregate program grants payable under this Agreement will be subject to and will not exceed the applicable Program Cap. 1. One Universitv Garage Grant. If Developer exercises its option to purchase the One University Garage contained in a separate Purchase and Sale Agreement between the parties and there is a difference between the fair market value of the One University Garage and $100, such difference will be credited or paid to Developer by City as an economic development program grant ("One University Garage Grant"). The One University Garage Grant will not count toward the Program Cap. b. Non -appropriation of Funds. In the event no fiends or insufficient funds are appropriated by City in any fiscal period for any payments due hereunder, City will notify Vendor of such occurrence and this Agreement shall terminate on the last day of the fiscal period for which appropriations were received without penalty or expense to City of any kind whatsoever, except as to the portions of the payments herein agreed upon for which funds have been appropriated. C. Program Cab. If, in any Program Year, the amount of the Program Grant calculated in accordance with this Agreement would cause aggregate Program Grants paid by the City to exceed the Program Cap, the amount of the Program Grant payable in that Program Year will be limited to equal only the difference between the aggregate amount of all Program Grants previously paid and the Program Cap amount, in which case, upon payment of such Program Grant, this Agreement will expire automatically. d. Deadline for Pavments and Source of Funds. i. The first Program Grant payable hereunder will be paid by the City on or before first day of the Second Operating Year. ii. Each subsequent annual Program Grant payment will be made by the City to Developer on or before June 1 of the year in which such payment is due. iii. It is understood and agreed that all Program Grants paid pursuant to this Agreement will come from currently available general revenues of the City and not directly from ad valorem taxes on the One University Site or improvements thereon that are received by the City. EDPA between City of Fort Worth and Goldenrod Services 6 of 13 iv. Developer understands and agrees that any revenues of the City other than those dedicated for payment of a given annual Program Grant pursuant to and in accordance with this Agreement may be used by the City for any lawful purpose that the City deems necessary in the carrying out of its business as a home - rule municipality and will not serve as the basis for calculating the amount of any future Program Grant or other obligation to Developer. 7. Default, Termination, and Failure by Developer to Meet Deadlines and Commitments. a. Failure to Meet Real Probertv Commitment. Notwithstanding anything to the contrary herein, the City will have the right to terminate this Agreement upon provision of written notice to Developer, without further obligation to Developer hereunder, if the Real Property Commitment has not been met. Upon written notice, Developer will have 90 days after receipt of written notice from the City to meet the obligations under the Real Property Commitment, as applicable, or this Agreement will be terminated. b. Failure to Meet BEF Construction Sbendina Commitment. If the Developer fails to meet the BEF Construction Spending Commitment such failure does not give the City the right to terminate this Agreement, but, rather, will only cause a reduction proportionate to the percentage by which the Developer failed to meet the BEF Construction Spending Commitment; provided, however, such proportionate reduction of the 380 Grant payments shall be capped at ten percent (10%) of the annual Program Grant in the aggregate. C. Failure to Use One University Site for the Proiect. If Developer fails to maintain the One University Site in a form and of a use generally consistent with and satisfying the minimum commitments of the Required Improvements for more than thirty (30) consecutive calendar days at any time during the Term of this Agreement for any reason (other than on account of Developer's temporary displacement caused by a casualty to such location and resulting ongoing repairs or restoration to that location necessitated by such casualty), Developer will be in default under this Agreement and the City will have the right to terminate this Agreement following provision of notice and opportunity to cure in accordance with Section. d. Failure to Submit Reports. Developer fails to submit any report required by and in accordance with this Agreement, the City's obligation to pay any Program Grants at the time, if any, will be suspended until Developer has provided all required reports; provided, however, that if any report required hereunder is delinquent by more than one (1) year, the City will have the right to terminate this Agreement following provision of notice and opportunity to cure in accordance with this Section. e. General Breach. Unless stated elsewhere in this Agreement, Developer will be in default under this Agreement if Developer breaches any term or condition of this Agreement. In the event that such breach remains uncured after thirty (30) calendar days following receipt of written notice from the City referencing this Agreement (or, if EDPA between City of Fort Worth and Goldenrod Services 7 of 13 Developer has diligently and continuously attempted to cure following receipt of such written notice but reasonably requires more than thirty (30) calendar days to cure, then such additional amount of time as is reasonably necessary to effect cure, as determined by both parties mutually and in good faith), the City will have the right to terminate this Agreement immediately by providing written notice to Developer. f. Knowing Emalovment of Undocumented Workers. i. Developer acknowledges that the City is required to comply with Chapter 2264 of the Texas Government Code, enacted by House Bill 1196 (80th Texas Legislature), which relates to restrictions on the use of certain public subsidies. Developer hereby certifies thatDeveloper, and any branches, divisions, or departments of Developer, does not and will not knowingly employ an undocumented worker, as that term is defined by Section 2264.00](4) of the Texas Government Code. In the event that Developer, or any branch, division, or department of Developer, is convicted of a violation under 8 U.S.C. Section 1324a(f) (relating to federal criminal penalties and injunctions for a pattern or practice of employing unauthorized aliens): 1. if such conviction occurs during the Term of this Agreement, this Agreement will terminate contemporaneously upon such conviction (subject to any appellate rights that may lawfully be available to and exercised by Developer), and Developer must repay, within one hundred twenty (120) calendar days following receipt of written demand from the City, the aggregate amount of the Program Grants received by Developer hereunder, if any, plus Simple Interest at a rate of four percent (4016) per annum; or 2. if such conviction occurs after expiration or termination of this Agreement based on conduct that occurred during the term of this Agreement, subject to any appellate rights that may lawfully be available to and exercised by Developer, Developer must repay, within one hundred twenty (120) calendar days following receipt of written demand from the City, the aggregate amount of the Program Grants received by Developer hereunder, if any, plus Simple Interest at a rate of four percent (4%) per annum. ii. For the purposes of this Section 8.6, "Simple Interest" is defined as a rate of interest applied only to an original value, in this case the aggregate amount of Jobs Grants paid hereunder. This rate of interest can be applied each year, but will only apply to the aggregate amount of Program Grants paid hereunder and is not applied to interest calculated. For example, if the aggregate amount of the Program Grants paid hereunder is $10,000 and such amount is required to be paid back with four percent (4%) interest five years later, the total amount would be $10,000 + [5 x ($10,000 x 0.044)], which is $12,000. This Section 8.6 does not apply to convictions of any subsidiary or affiliate entity of Developer, by any EDPA between City of Fort Worth and Goldenrod Services 8 of 13 franchisees of Developer, or by a person or entity with whom Developer contracts. Notwithstanding anything to the contrary herein, this Section 8.6 will survive the expiration or termination of this Agreement. 8, Independent Contractor. It is expressly understood and agreed that Developer will operate as an independent contractor in each and every respect hereunder and not as an agent, representative or employee of the City. Developer will have the exclusive right to control all details and day-to-day operations relative to the Required Improvements and the One University Site and any improvements thereon and will be solely responsible for the acts and omissions of its officers, agents, servants, employees, contractors, subcontractors, licensees and invitees. Developer acknowledges that the doctrine of respondeat superior will not apply as between the City and Developer, its officers, agents, servants, employees, contractors, subcontractors, licensees, and invitees. Developer further agrees that nothing in this Agreement will be construed as the creation of a partnership or joint enterprise between the City and Developer. 9. INDEMNIFICATION. DEVELOPER, AT NO COST TO THE CITY, AGREES TO DEFEND, INDEMNIFY, AND HOLD THE CITY, ITS OFFICERS, AGENTS, SERVANTS, REPRESENTATIVES, AND EMPLOYEES, HARMLESS A GAINSTANYAND ALL CLAIMS, LAWSUITS, ACTIONS, COSTS AND EXPENSES OF ANY KIND, INCLUDING, BUT NOT LIMITED TO, THOSE FOR PROPERTY DAMAGE OR LOSS (INCLUDING ALLEGED DAMAGE OR LOSS TO DEVELOPER'S BUSINESS AND ANY RESULTING LOST PROFITS) AND PERSONAL INJURY, INCLUDING, BUT NOT LIMITED TO, DEATH, THAT MAY RELATE TO, ARISE OUT OF OR BE OCCASIONED BY (i) DEVELOPER'S BREACH OF ANY OF THE TERMS OR PROVISIONS OF THIS AGREEMENT OR (ii) ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCONDUCT OF DEVELOPER, ITS OFFICERS, AGENTS, ASSOCIATES, EMPLOYEES, CONTRACTORS (OTHER THAN THE CITY) OR SUBCONTRACTORS, RELATED TO THE ONE UNIVERSITY SITE, OR ANY IMPROVEMENTS THEREON, INCLUDING THE REQUIRED IMPROVEMENTS, OR ANY OTHER NEGLIGENTACT OR OMISSION OF THE DEVELOPER THAT IS RELATED TO THE PERFORMANCE OF THIS AGREEMENT. THE DEVELOPER HAS NO INDEMNIFICATION OBLIGATION BEYOND THAT WHICH IS SET FORTH IN CATEGORIES (i) AND (ii) ABOVE. BY WAY OF EXAMPLE, THE DEVELOPER HAS NO DUTY TO INDEMNIFY THE CITY, ITS OFFICERS, AGENTS, SERVANTS, REPRESENTA7IVES OR EMPLOYEES FOR ANY NEGLIGENT ACT OR OMISSION OR INTENTIONAL MISCONDUCT OF THE CITY, ITS OFFICERS, AGENTS, SERVANTS, REPRESENTATIVE, OR EMPLOYEES. 10. Notices. All written notices called for or required by this Agreement must be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, electronic transmittal or by hand delivery: City: Developer: City of Fort Worth Goldenrod Services, LLC Attn: City Manager Attn: Zachary A. Wiegert EDPA between City of Fort Worth and Goldenrod Services 9 of 13 200 Texas Street Fort Worth, TX 76102 with copies to: the City Attorney at the same address and the following: City of Fort Worth Attn: Director Economic Development Department 1150 South Freeway Fort Worth, TX 76104 14606 Branch Street, Suite 100 Omaha, NE 68154 with copies to: Goldenrod Companies Attn: Kendra J. Ringenberg 14606 Branch Street, Suite 100 Omaha, NE 68154 kringenberiz a,,goldenrodcompanies.com 11. Assignment and Successor. Developer may, at any time assign, transfer, or otherwise convey any of its rights or obligations under this Agreement to an Affiliate without the approval of the City so long as Developer and the Affiliate first execute an agreement under which the Affiliate agrees to assume and be bound by all covenants and obligations of Developer under this Agreement and a copy of such agreement is provided to the City. Otherwise, Developer may not assign, transfer or otherwise convey any of its rights or obligations under this Agreement to any other person or entity without the prior consent of the City Council, which consent will not be unreasonably withheld, conditioned on (i) the prior approval of the assignee or successor and a finding by the City Council that the proposed assignee or successor is financially capable of meeting the terms and conditions of this Agreement and (ii) prior execution by the proposed assignee or successor of a written agreement with the City under which the proposed assignee or successor agrees to assume and be bound by all covenants and obligations of Developer under this Agreement. Any attempted assignment without the City Council's prior consent will constitute grounds for termination of this Agreement following ten (10) calendar days of receipt of written notice from the City to Developer. Any lawful assignee or successor in interest of Developer of all rights under this Agreement will be deemed "Developer" for all purposes under this Agreement. Notwithstanding anything herein to the contrary, Developer may collaterally assign this Agreement to a mortgagee and, at the request of the Developer, the City agrees to execute a consent to such collateral assignment in a form and substance reasonably acceptable to the City. 12. Compliance with Laws, Ordinances, Rules, and Regulations. This Agreement will be subject to all applicable federal, state and local laws, ordinances, rules and regulations, including, but not limited to, all provisions of the City's Charter and ordinances, as amended. 13. Governmental Powers. It is understood that by execution of this Agreement, the City does not waive or surrender any of its governmental powers or immunities. 14. No Waiver. The failure of either party to insist upon the performance of any term or provision of this Agreement or to exercise any right granted hereunder will not constitute a waiver of that party's right to insist upon appropriate performance or to assert any such right on any future occasion. EDPA between City of Fort Worth and Goldenrod Services 10 of 13 15. Venue and Choice of Law. If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of this Agreement, venue for such action will lie in state courts located in Tarrant County, Texas or the United States District Court for the Northern District of Texas — Fort Worth Division. This Agreement will be construed in accordance with the laws of the State of Texas. 16. No Third-Partv Rights. The provisions and conditions of this Agreement are solely for the benefit of the City and Developer, and any lawful assign or successor of Developer, and are not intended to create any rights, contractual or otherwise, to any other person or entity. 17. Interpretation. In the event of any dispute over the meaning or application of any provision of this Agreement, this Agreement must be interpreted fairly and reasonably, and neither more strongly for or against any party, regardless of the actual drafter of this Agreement. 18. Captions. Captions and headings used in this Agreement are for reference purposes only and will not be deemed a part of this Agreement. 19. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired. 20. Entirety of Agreement. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Developer, and any lawful assign and successor of Developer, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. Notwithstanding anything to the contrary herein, this Agreement may not be amended unless executed in writing by both parties and approved by the City Council of the City in an open meeting held in accordance with Chapter 551 of the Texas Government Code. 21. Counterparts. This Agreement may be executed in multiple counterparts, each of which will be considered an original, but all of which will constitute one instrument. 22. Electronic Signatures. This Agreement may be executed by electronic signature, which will be considered as an original signature for all purposes and have the same force and effect as an original signature. For these purposes, "electronic signature" means electronically scanned and transmitted versions (e.g. via pdf file or facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign. EDPA between City of Fort Worth and Goldenrod Services 11 of 13 EXECUTED as of the last date indicated below: City: By: William Johnson (0 t 3, 202410:19 CDT) Name: William Johnson Title: Assistant City Manager Date: Oct 3, 2024 Developer: Goldenrod Services, LL By: : - - - - V . Wiegert / Date: FOR CITY OF FORT WORTH INTERNAL PROCESSES: Approval Recommended: By: Robert Sturns (Aug 28, 202417:30 CDT) Name: Robert Sturns Title: Director, Economic Development Department Approved as to Form and Legality By: r Name: John B. Strong Title: Senior Assistant City Attorney Contract Authorization: M&C: !NA Contract Compliance Manager: By signing I acknowledge that I am the person responsible for the monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: Michael Henni g 28, 20 7:02 CDT) Name: Michael Hennig Title: Economic Economic fl����ln -ant Manager City Secretary: By: Name: Janette S. Goodall Title: City Secretary EDPA between City of Fort Worth and Goldenrod Services 12 of 13 EXHIBIT "A" Descriotion and Man Depicting the One Universitv Site MORTM STREET ;ZIP wlxmt -'ar 7.07- Li LT StVWE3 LT LT LM I R IT LT. Ct' elvut: Fr. '." aid uj 7 I > effi U I Au IT I Ll LT I IT,,- I LT LT LT 4 ------- ------- ------- — -- --"WaV — Wa- AI. xuaws BLEDSOE STREET 81 0 z EDPA between City of Fort Worth and Gotdenrod Services Page 13 of 13 Discussion I f Certifications I1 Attachments i1 Authoa & Reviewers I [ summary (This is a read only summary view of the M&C) City of Fort Worth, Texas Mayor and Council Communication DATE: 10117123 LOG NAME: 17GOLDENRODEDPA CONSENT: Non -Consent (CD 9) Authorize Execution of an Economic Development Program Agreement with Goldenrod Services, LLC, or an Affiliate, for the Construction of an Approximate 740,000 Square Foot Mixed -Use Development Generally Located at the Northwest Comer of West Seventh Street and Foch Street and at the Northeast Comer of University Drive and Bledsoe Street RECOMMENPAJION• It is recommended that the City Council: 1. Authorize execution of an Economic Development Program Agreement with Goldenrod Services, LLC, or an Affiliate, for the construction of two separate mixed -use developments totalling approximately 740,000 square feet; 2. Find that the terms and conditions of the Economic Development Program Agreement, as outlined herein, constitute a custom -designed Economic Development Program, as recommended by the most recently -adopted Comprehensive Plan and authorized by Chapter 380 of the Texas Local Government Code; and 3. Authorize the execution of other related agreements as may be necessary to facilitate the project in accordance with all authorized terms. nlsCl issinN•. The purpose of this Mayor and Council Communication (M&C) is to approve certain agreements necessary to facilitate a proposed development by Goldenrod Services, LLC (Developer). Developer is a national real estate development company focused on projects in growing markets within the Central United States and has participated in dozens of mixed -use projects and public -private partnerships. Developer now wishes to develop property that is located on two separate blocks, the first being located at the northwest comer of West Seventh Street and Foch Street (the Van Zandt) and the other being located at the northeast comer of University Drive and Bledsoe Street (One University) (collectively the Project Site). Developer proposes to develop the Project Site as an approximate $400 million walkable mixed -use development consisting of approximately 740,000 square feet of new construction in at least three (3) structures of at least eight (8) stories to be comprised of new office space, retail space, a 175 key hotel, and 466 units of multi -family (Project) . Pnllnner r.nmmitmant, To support the Project, Developer and City staff propose to enter into an Economic Development Program Agreement (EDPA). As part of the proposed EDPA, Developer would commit to completing the Project in accordance with the following minimums: Jhe_YaiZandt Minimum 95,000 square feet of new office space Minimum 10,000 square feet of new retail space Minimum 226 new multi -family units Minimum 500 space parking garage (Van Zandt Parking Garage) Minimum Total Development Costs of $145,000,000.00 Minimum $90,000,000.00 Hard Construction Costs All portions of the Van Zandt that are intended to be occupied must have a temporary or final Certificate of Occupancy by December 31, 2026 (Van Zandt Completion Deadline). O ne_ UniversitY. • Minimum 100,000 square feet of new office space • Minimum 10,000 square feet of new retail space • Minimum 240 new multi -family units • Minimum 175 key hotel • Minimum 800 space parking garage (the One University Parking Garage) (together with the Van Zandt Parking Garage, the Parking Garages) • Minimum Total Development Costs of $255,000,000.00 • Minimum $155,000,000.00 Hard Construction Costs • All portions of One University that are intended to be occupied must have a temporary orfinal Certificate of Occupancy by December 31, 2027 (the One University Completion Deadline and together with the Van Zandt Completion Deadline, the Completion Deadlines). utmzaunn _0f.Business_Egydy.£icros...(Bfilll...l=copadYJ.ro11covement5)^ Developer must expend or cause to be expended 15% of all construction costs (Hard and Soft) for the Project as defined in Chapter 20, Article X of the City Code. Failure to meet this commitment will not constitute a default, but the value of Grant eligibility will be reduced by 10%. Addi and Develoner.Commitments Developer commits that at no time during the term of the EDPA shall any Officer or employee of Developer actively solicit for relocation to the Project any office tenant that is then located within the corporate boundaries of the City of Fort Worth. This excludes instances of direct inquiry to Developer by such tenants and shall exclude any referral of such tenants to Developer by outside agencies or other organizations. Developer will employ a good faith effort to promote for lease its available office space to prospective tenants that are located outside of the City of Fort Worth. Developer commits that it will not, at any time during the term of the EDPA, lease any retail space to a freestanding bar or nightclub (defined as a facility selling only alcohol beverages). This commitment will not apply to any other form of alcohol service or bar that is physically located within or operated in direct association with any hotel or restaurant that is located within the Project. Upon completion of the Project, Developer will convey ownership of the Parking Garages to the Central City Local Government Corporation (CCLGC) at no cost to the CCLGC g t y.EPPA.Cammitments: In return for development of the Project, the City would provide up to fifteen (15) annual grants equal to $2,055,517.00 (Grants) for a total amount not to exceed $30,832,755.00 (Program Cap). Any net difference between (i) the Grants and (ii) 85% ofthe Project's incremental City ad valorem taxes and 1% City sales tax revenues from the Project Site will be added to the purchase price payable by Developer to CCLGC upon exercising the Purchase Option as described below. Additional Aareements: To facilitate the Project, CCLGC (with Board approval), and Developer will enter into the following agreements: Oneration and Maintenance Aareement Subject to Board approval, CCLGC and Developer will enter into one or more operation and maintenance agreements (collectively, the O&M Agreement) for the use, operation, and maintenance of the Parking Garages, subject to certain conditions and including an assignment of the City's options to purchase the parking garage facility and the Property. The following rights and conditions will apply the O&M Agreement: • CCLGC will have no obligation at any time to pay Developer any fee or service payment with respect to the O&M Agreement. • Developer will be responsible for all costs and activities associated with the maintenance and operation of the Parking Garages. • The spaces allocated to the office component of each of the Van Zandt and One University minimum will be required to be made available for use by the public during non -business hours, with the understanding that Developer may charge an hourly parking fee (Parking Revenue). • After payment of all costs associated with the maintenance, operation and programming of the Garage, Developer will pay to CCLGC annually an amount equal to 50% of any Parking Revenue collected for the term of the O&M Agreement. Qption Agreement • Either separately or as part of the O&M Agreement, CCLGC and Developer will enter into an Option Agreement for the Parking Garages providing a purchase option (Purchase Option) and a put option (Put Option) to Developer and CCLGC respectively. Any difference between the market price of the Parking Garages and the purchase price required under either of the Purchase Option and the Put Option will constitute a one-time Economic Development Program Grant which will be facilitated by the City through the EDPA. The grants provided under this agreement will be built into the City's long-term financial forecast with a maximum grant award of $30,832,755.00. This project is located in COUNCIL DISTRICT 9. FISCAL INFORMATION / CERTIFICATION: The Director of Finance certifies that approval of this agreement will have no material effect on the Fiscal Year 2024 Budget. While no current year impact is anticipated from this action, any effect on expenditures and revenues will be budgeted in future Fiscal Years and will be included in the long-term financial forecast. Submitted for City anager's Office byj William Johnson 5806 Oriainatina Business Unit Head: Robert Stums 2663 Additional Information Contact: Michael Hennig 6024 M&C Code contract to M&C Type O Consent OO Non -Consent M&C Business Unit zconomlc Development O Purchasing M&C M&C Logname 17 GOLDENRODEDPA M&C Subject 8 Source I - (CD 9) Authorize Execution of an Economic Development Program Agreement with Goldenrod Services, LLC, or an Affiliate, for ' the Construction of an Approximate 740,000 Square Foot Mixed -Use Development Generally Located at the Northwest Corner of West Seventh Street and Foch Street and at the Northeast Corner of University Drive and Bledsoe Street Council Date to/17/zs Approval Deadline: 5:00 pm on 09/28/23 O Information Technology Related O Includes Any Federal, State, Interlocal or Grant Funding 8 O Public Hearing ❑ Financial Impact to Another Business Unit Certificate of Interested Parties , Contract Requiring Form 1295 O Form 1295 NOT Required Special Instructions Discussion 9 Source - I - - The purpose of this Mayor and Council Communication (M&C) is to approve certain agreements necessary to facilitate a proposed development by Goldenrod Services, LLC (Developer). Developer is a national real estate development company focused on projects in growing markets within the Central United States and has participated in dozens of mixed -use projects and public -private partnerships. Developer now wishes to develop property that is located on two separate blocks, the first being located at the northwest corner of West Seventh Street and Foch Street (the Van Zandt) and the other being located at the northeast corner of University Drive and Bledsoe Street (One University) (collectively the Project Site). Developer proposes to develop the Project Site as an approximate $400 million walkable mixed -use development consisting of approximately 740,000 square feet of new construction in at least three (3) structures of at least eight (8) stories to be comprised of new office space, retail space, a 175 key hotel, and 466 units of multi -family (Project). Develoner Commitments: To support the Project, Developer and City staff propose to enter into an Economic Development Program Agreement (EDPA). As part of the proposed EDPA, Developer would commit to completing the Project in accordance with the following minimums: The Van Zandt • Minimum 95,000 square feet of new office space • Minimum 10,000 square feel of new retail space • Mimmum 226 new mufti -family units • Minimum 500 space parking garage (Van Zandt Parking Garage) • Minimum Total Development Costs of $145,000,000.00 Submitted for City Manager's Office by I (Name Phone Extensionl 1M11iam Johnson 5806 Originating Business Unit Head I Name Phone Extension I Robert Stums 26fi3 Additional Information Contact I (Name Phone Extensionl Michael Hennig 6024 To have the default values on this page updated contact the City Secretary's Office at extension 6081. Attachments Attachment Form 1295.pdf View Hennig, Michael Attachment Type For Use By Form 1295 CFW Internal 230914_Goldenrod_LocationMap.pdf View Hennig, Michael M.P/pi.t Public Document Add Row for New Attachment Original Creator of M&C Employee Name Hennig, Mchael Employee Title Email Phone Business Unit 17 Economic Development Department Employees with Author Authority on this M&C Authors Primary Author Hennig, Michael Approval Notifications Notify the following when any approval is completed for this M&C: IB 4,,� Yes i i� Yes ii Economw Developm (817) 392-6024 Econom Comm Dev-Development Generate PDF Copy of M&C M&C 17GOLDENRODEDPA.pdf View Download Remove 9/14/2023 7:56 PM Henmg, Michael M&C 17GOLDENRODEDPA.pdf View Download Remove 911512023 1,24 PM Jones -Newlin, Stephanie J M&C 17GOLDENRODEDPA.pdf View Download Remove 9/18/2023 10:26 AM Gao, Zoe M&C 17GOLDENRODEDPA.pdf View Download Remove 9/18/20232:51 PM Fernandez, On M&C 17GOLDENRODEDPA.pdf View Download Remove 911912023 4:22 PM Hennig, Michael M&C 17GOLDENRODEDPA.pdf Yj= Download Remove 9/19/20234:27 PM Slums, Robert M&C 17GOLDENRODEDPA.pdf View Download Remove 9/19/20234:37 PM Ibarra, Alma B M&C 17GOLDENRODEDPA.pdf View Download Remove 911912023 4:59 PM Shannon, Mitzy M&C 17GOLDENRODEDPA.pdf View Download Remove 920/2023 8:43 AM Kirk, Steven B M&C 17GOLDENRODEDPA.pdf View Download Remove 9202023 2:24 PM Perry, Catherine M&C 17GOLDENRODEDPA.pdf View Download Remove 921202311 44AM Stums, Robert M&C 17GOLDENRODEDPA.pdf View Download Remove 9212023 2:16 PM Johnson, William M Participants Completed Status Result Comments Initiator Hennig, Michael 19/142023 7:56 PM Completed Author Collaboration 9/14/2023 7:56 PM LHennig, Michael 19/1920234:22 PM (Completed Collaboration Complete- Route for Approval Review 9/14/2023 7:56 PM Janes -Newlin, StephanieJ 9/152023 1:24 PM Completed Submit Review Gao, Zoe 9/18202310:26 AM Completed Oi Submit Review Fernandez, On 9/1820232:51 PM Completed Submit Review Pohler, Ryan M 9/1920234:22 PM Cancelled [Cancelled Due to Condition: Collaboration Complete] Wallach, Tyler 9/1920234,22 PM Cancelled [Cancelled Due to Condition: Collaboration Complete] Send Review Completion Email 9/18/2023 8:26 AM Jones -Newlin, StephanieJ 19/1820238:26 AM Notified Send Review Completion Email 9/18/2023 10:36 AM Gao, Zoe 9/182023 10:36 AM Notified Send Review Completion Email 9/18/2023 3:08 PM Fernandez, On 9/182023 3:08 PM Notified Initial Director Approval 9/19/2023 4:22 PM Sturns, Robert 9/1920234:27 PM Completed VO Approve MWBE Approval 9/19/2023 4.27 PM Ibarn, Alma B 19/1920234:37 PM Completed Approve Budget Coordinator 9/19/2023 4:37 PM Shannon, Mitzy 1 9/19/2023 4:59 PM (Completed &Assignments Completed Budget Approval 9/19/2023 4:59 PM Kirk, Steven B 1 9/202023 8:43 AM Completed J Final Budget Approval No budget impact CFO Fiscal Certification 9/20/2023 8:43 AM Perry, Catherine 19/202023 2:24 PM Completed Approve Final Director Approval 9/20/2023 2:24 PM Sturns, Robert 19/212023 11:44AM Completed pf Approve ACM Approval 9/21/2023 11A4 AM Johnson, William M 19/212023 2:16 PM Completed pf Approve Legal Approval 9/21/2023 2.16 PM Wallach, Tyler I - I Active O Send this M&C to the deletion pending state Current Routing Step: Legal Approval 8/28/24, 4:30 PM M&C Review CITY COUNCIL AGENDA Official site of the City of Fort Worth, Texas F "11 Fi Create New From This M&C DATE: 8/27/2024 REFERENCE **M&C 24- LOG NAME: 17GOLDENRODEDPAAMEND1 NO.: 0732 CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 9) Amend Mayor and Council Communication 23-0857 Authorizing an Economic Development Program Agreement and Other Related Agreements with Goldenrod Services, LLC, or an Affiliate, for the Construction of Two Mixed -Use Developments Generally Located at the Northwest Corner of West Seventh Street and Foch Street and at the Northeast Corner of University Drive and Bledsoe Street, to Separate the Agreement into Two Different Agreements with Goldenrod Services, LLC or Affiliated Entities RECOMMENDATION: It is recommended that the City Council amend Mayor and Council Communication 23-0857 authorizing an Economic Development Program Agreement and other related agreements with Goldenrod Services, LLC, or an Affiliate, for the construction of two mixed -use developments generally located at the northwest corner of West Seventh Street and Foch Street and at the northeast corner of University Drive and Bledsoe Street, to separate the agreement into two different agreements with Goldenrod Services, LLC or Affiliated Entities. DISCUSSION: On October 17, 2023, City Council adopted Mayor and Council Communication (M&C) 23-0857 authorizing the following agreements (Agreements) with Goldenrod Services, LLC, or an Affiliate (Developer): 1. An Economic Development Program Agreement (EDPA) for the Construction of the Development; 2. Acceptance of Two Parking Garages with Purchase Options; 3. One or More Agreement with Goldenrod for the Operation and Maintenance of the Two Parking Garages; and 4. Other Related Agreements as May be Necessary to Facilitate the Project in Accordance with the Authorized Terms The purpose of the Agreements is to support the development of the Project Site (which consists of two separate but nearby properties) as a minimum $400 million walkable mixed -use development consisting of 740,000 square feet of new construction in at least three (3) structures of at least eight (8) stories to be comprised of new office space, retail space, a 175-key hotel, two parking garages, and 466 units of multi -family (Project). The EDPA, as approved, was contemplated to be a single agreement addressing both properties located within the Project Site as one overall combined project that would be developed and owned by the same developer for the duration of the Agreements. It is still Developer's intent to construct both properties on the Project Site consistent with the requirements approved by the City Council under M&C 23-0857. However, anticipating the potential future need to assign the EDPA agreement associated with one or both properties to a future owner or lender that may not necessarily be the same entitiy as that of the other property, Developer is requesting that the singular EDPA be permited to be executed as two separate (but still interrelated) EDPA agreements in order to facilitate this scenario. No changes are proposed for the Developer commitments with respect to either property and failure to deliver either or both properties as part of the Project will result in penalties that could include a reduction or forfeiture of any incentives authorized under the Agreements. apps.cfwnet.org/council_packet/mc_review.asp?ID=32438&councildate=8/27/2024 1 /2 8/28/24, 4:30 PM M&C Review Under the separate EDPA agreements and subject to key project deliverables and other performance requirements, Developer will be entitled to receive fifteen (15) annual grants in amounts that are generally proportional to the investment value of each of the two properties that are associated with the Project. More specifically, this would result, in the case of the Van Zandt, in annual grants equal to $745,125.00 each for a total amount not to exceed $11,176,881.00 and, in the case of One University, annual grants will be equal to $1,310,392.00 each for a total amount not to exceed $19,655,894.00. The sum of these amounts are equal to the overall amounts authorized under M&C 23-0857. Staff is recommending an amendment to M&C 23-0689 to allow for the Agreement to reflect these changes. This project is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of this recommendation will have no material effect on City funds. TO Fund ' Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project ID I ID Submitted for City Manager's Office by_ Originating Department Head: Additional Information Contact: ATTACHMENTS Form 1295.pdf (CFW Internal) M&C 17GOLDENRODEDPA.pdf (Public) Program I Activity I Budget Reference # Amount Year (Chartfield 2) William Johnson (5806) Robert Sturns (2663) Michael Hennig (6024) apps.cfwnet.org/council_packet/mc_review.asp?ID=32438&councildate=8/27/2024 2/2