HomeMy WebLinkAboutContract 44831 CITY SECRETARY '111X3
CONTRACT NOV
COMPLETION AGREEMENT
This Completion Agreement ("Agreement) is made, and entered into by
and among the City of Fort Worth "City"), and Hillwood Residential
Services, L .P., a Texas limited partnership ("Developer"), and Finance
Partners, LP ("Lender"), effective as olf June 28, 20113. The City, U11C.;
Developer and the Lender r are hereinafter collectively called the, "Parties".
WHEREAS, Hillwo d RLD, l.p.,, a Texas limited partnership
(",Borrower") owns that certain tract of real p oplerty that contains
approximately 20. 168 acres that is lo, ated in the City, the legal description
oaf which tract of real property is marked Exhibit "A" — legal Description,
attached hereto and incorporated Derain for all purposes (which tract of real.
property is hereinafter called the "Property"); and
WHEREAS, the Borrower intends to develop the Property as an addition
to the City through 1 l at FP 013-026 or FS n a and
WHEREAS, the Borrower has engaged the Developer to construct the
Community Facilities (hereinafter defined), and the Developer and the City
have entered into a Community Facilities Agreement relating to the
development of __Phase 4 of Creekwood Addition (hereinafter called the
"CFA"); and
WHEREAS, the City has required certain assurances, of the availability
of' funds to complete the streets, street signs and lights, and the water and
sewer utilities for the development of the :Property (herein collectively called
the "Community Facilities"), and
WHEREAS, in "order to provide such assurances as lave been required
by the City, the Le,nder has agreed to advance certain funds to the City for
Hard hosts (which term is hereinafter defined) subject to, and in accordance
with, the terms,, provisions and conditions of this Agreement and
WHEREAS, the Borrower has granted to the Lender as additional.
security for the loan (which term is hereinafter defined) a security interest in
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all plans and specifications for the development of the Property (h'ereinaf'ter
collec,tively called the ",Plans"); and
WHEREAS, the Parties desire to set forth the terms and conditions of
such accommodations as are described above.
NOW THEREFORE, for and in consideration of the benefits to be
derived from the mutual observance by the parties of the terms and conditions
hereof, and for and in consideration of Ten Dollar's ($ 10.00) and other good
and valuable consideration, the receipt, adequacy and sufficiency of which
arc hereby acknowledged, the Parties and Borrower agree as follows:
1 . Recitals. The foregoing, recitals are true, correct and corn to
and constitute the basis for this Agreement and they are incorporated into this
Agreement for all purposes.
2. The Com et on Amount. The City and the Developer agree that
the Hard Costs required to complete the Community Facilities in the
aggregate should not exceed the surn of Six Hundred Eighteen housand
Three Hundred Fort nine and 75/1001 Dollars ($618-.349.75), hereinafter
called the "Completion Amount". Notwithstanding the foregoing, it is
acknowledged that the actual costs of' completion of the Community Facilities
may vary as a result of gangs orders agreed to by the Parties, but such
variances for the purposes of this Agreement shall not affect the Completion
Amount as used herein.
3. Adiustments to the Completion Amo:unt. The Lender may from
time to time make advances to the Borrower foir the development of the
Property under the deve,lopment loan that leas been made by the Lender to the
Borrower for the purpose of financing the costs of" constructing the
Community Facilities for the Property (the "Loan"') subject to, and in
accordance with, the terms, conditions and provisions of the Loan Documents
(which term is hereinafter defined) evidencing and securing the Lo'an. Some
of those advances shall e for Hard Costs as splecified in the "Apipiroved
Budget"" relating to the Loan, a copy ofd" the hard coasts plo'rtioln of the
Approved Budget relating to the Community Facilities is marked Exhibit "B",
Page 2 of 14
attached hereto and 'incorporated herein for all purposes, with the Hard Costs
(which term is hereinafter defined) line items highlighted. The term "Hard
Costs" shall mean the actual costs o,f construction and installation of the
Community Facilities,. To the extent that advances, under the Loan are for the
payment of Hard Costs, the Completion Amount shall be deemed reduced,
dollar for dollar., The Lender may withhold statutory retainage from any
advances, under the Lean or pursuant to this Agreement. All such retainage
withheld to the extent it is attributable to Hard Costs shall also reduce the
Completion Amount dollar for dollar. All retainage withheld by the Lender
for Hard Gusts that are advanced to the City pursuant to this Agreement shall
be released to the City as provided in the Texas property Code upon
expiration of the statutory retainage period.
4. Completion by the Develo er. The Developer agrees to
colmplete the Community Facilities on or before the date fog r completion that
is established in the Loan Documents plus thirty (3 ays (hereinafter called
the "Completion Date"), in accordance with the CFA, the Plans that are
approved by the Lender and the City and all documents evidencing or
securing the Loa,n (which documents are hereinafter collectively called the
"Loan Documents""). For the purposes of this Agreement, the development of
the Plrope,r,ty shall be deemed complete upon acceptance by the City of the
Community Facilities,. The City shall promptly, notify the Lender and the
Developer uplo,n such acceptance.
5. Completion b the C In the event that either: (A) the
development of the Property is not completed by the Completion Date for any
reason whatsoever, or (B) the Borrower is in default under the Loan, then the
Lender, at its sole option, may request the City to complete development. The
City may, at its sole option and at the cost and expense of the Developer,
within 10 days from receipt of Lender's request, notify Lender that it will
undertake to complete the Community Facilities and the City shall then
commence, pursue, and complete the Community Facilities in a reasonably
timely, diligent and workmanlike manner in accordance with the Plans,
Page 31 of 14
subject to the terms of this Agreement. The Lender and the Developer agree
that the City may use the Plans as necessary to complete the Community
Facilities.
If the City does not timely elect to complete the construction of the
Community Facilities or if the City does not pursue and/or complete the
Community Facilities in the manner required in the foregoing paragraph, then
the Lender may at its election terminate this Agreement, and/or at its option,
proceed to complete the Community Facilities, and/or foreclose on any of' its
collateral, and/or take any and all such action as may be provided under the
Loan Documents.
0
6. 'Advance of Completion Costs to the C1 ity and Delivery of Hard
Costs, Collateral to the t . In the event the Lender has requested the City
and the City has elected to complete, the Community Facilities, Lender shall
agree (within 10 days of the date that the City elected to complete and
provided Lender with written notice of such election) to advance to the City
the remaining undisbursed Hard Costs specified in the Approved Budget,
provided the City complies with advance disbursement procedures reasonably
required by Lender, including without limitation, delivering copies of'
invoices, lien waivers and bills paid affidavits from contractors performing
the Hard Costs work as a condition precedent for each advance.
The Dievelopler hereby authorizes and instructs the .ender to make the
transfer of any remaining undisbursed Hard Costs specified in the Approved
Budget to the City pursuant to the foregoing sentence if the City elects to
complete the Community Facilities.
In the event the cost to complete the Community Facilities exceeds the
moneys transferred to the City, City shall notify Lender and Developer in
writing of the need of additional funds. The additiona,l funds required to
complete the Community Facilities shall be delivered to the City by
Developer within 10 business days foillowing noitification to Lender and
Developer. Failure to deliver the additional funds shall relieve the City of
the obligation to complete the Community Facilities, in which event City's
Page 4
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sole remedy shall be to use the Hard Costs funds in its possession to pay the
contractor(s) all funds due it/them. Any remaining undisbursed Hard Costs
shall be returned to Lender within a reasonable time.
7. Completion bi the Lender. The Lender may, at its discretion,
but shall not be obligated to, undertake to complete the Community Facilities
if there is any default under any Loan Documents or this Agreement in lieu of
requesting the City to com,plete the Community Facilities. If the Lender
elects to, c,omplete the Community Facilities, any Hard Coists it explends shall,
doillar for dollar, reduce the Completion Amount.
8. Easements. In the event the City or the Lender undertakes the
completion of the Community Facilities, Borrower (arid to the extent
necessary the Lender) grants to the City and the Lender open access to the
Property and shall execute and deliver such temporary easements over and
across the entirety of the Property for the purpose of access and use for the
co iletion of the construction of the Community Facilities in accordance
with this Agreement. To the extent requested by the City and the Lender,
written temporary construction easements in form acceptable to the City and
the Lender shall be executed by Borrower and filed of record. Nothing in this
paragraph shall reduce any rights of the Lender or obligations of Borrower
under the Cohn Documents.
91. Lender's Riahts. Nothing in this Agreement shall affect any
portion, of the Lender's collateral for the Loan or limit o,r impair the Lender"s
right to foreclose the same or deal with the collateral as it elects, in
accordance with the Loan Documents.
10. Satistaction olf the.,....City Reguirements. The City agrees that the
assurances and covenants contained in this Agreement s,at i s fy all
requirements of the City with respect to payment and performance bonds or
other requirements for security in connection with the development of the
Property and the completion of the Community Facilities that are contained in
the CFA or in any other agreement relating thereto, and the City hereby
accepts the assurances and covenants contained herein in lieu thereof. T'o the
Page -5 of 1,4
extent the CAA irreconcilably conflicts with this Agreement, the provisions
of this Agreement shall control.
11 . Termination. This Agreement shall terminate upon the earlier to
occur of the following.- (a) acceptance by the City of the Community
Facilities; (b) mutual written agreement of all of the Parties-, or (c) the
reduction of' the Completion Amount to zero. However, release of the plat
shall be governed by paragraph 12 hereof and termination pursuant to (b) or
(c) of this paragraph I I shall not require the City to release the plat.
12. Final Plat. The Parties and Borrower acknowl.edge and agree
that the City shall hold the final plat of the Property until the Community
Facilities are completed and accepted by tie City and all Hard Costs,
contractors have been paid'., less retainage, the holding of the final plat as
described herein and the agreements, of Lender in Section 6 hereof being the
City's sole and exclusive remedies for a default ley the Developer or Lender
under this Agreement). Upon acceptance by the City and receipt of evidence
from the Developer or Lender showing that all, Hard Costs, contractors have
been paid, 'including but not necessarily limited to lien waivers and bills paid
affidavits, the City shall within a reasonable time file the final plat for the
Property in the Plat Records of the county where the Property is located. The
purpose of the City retaining the final plat of the Property as provided herein
is to guarantee the Developer's ob,ligations, under the CFA are completed.
1 3. Construction Contracts'. Developer agrees to include in each
Construction contract that it enters into for the completion of the Community
Facilities the following:
a. A statement that the City is not holding any security to guarantee any
payment for work performed o�n th,e Community Facilities';
b. A statement that the Property is private property and that same may
be subject to mechanic's, and mate rialman's liens;
c. A requirement that each contractor contracting with the Developer
release the City from any payment claim that is related to the Property,
unless the City elects to complete the Community Facilities, pursuant to
Page 6 of 14
Sections 5 and 6 above and retains such contractor as the contractor to
continue performing the Hard Costs work; and
d. A requirement that each contractor contracting with the Developer
include in each subcontract the staternents contained in a., b., land c.
above.
4. Miscellaneous.,
A. Non-Assignment of Apreement. This Agreer .LL ent may not ✓ assigned
by any of the Parties without the prior written consent of all the other
Parties.
B. No tic e. Any notice required or permitted to be delivered under this
Agreement shall be deemed received on actual receipt by the
appropriate party at the following addresses:
(i) Notice to the City shall be addressed and delivered as follows:
City of Fort Worth
Planning and Development Department
1000 Throckmortoln Street
Fort Wo:rth, Texas 76102
Attention-, CFA Division
David Schroeder,, Development Manager
I
Email- David.Schroeder @fort worthgov.,org
Confirmation Number: 8117-392-l2239
and/or
Attention.- CFA Division
Jana Knight, Administrative Assistant
Email: Jana.Knight@fortworthgov.org
Confirmation Number-, 817-392-2025
With a copy thereof addressed and delivered as follows:
Douglas W. Black
Office olf the City Attorney
City of Fort Worth
10010, Throickmorton Street
Fort Worth, Texas 76, 102
Page 7 of 14
Confirmation Number-, 817-3192-76:017
(i i) Notice to the Developer or Borrower shall be addressed and
delivered as follows.-
Hillwoold Residential Services or Hillwood RLD,, LP
30190 dive Street, Suite 300
Diallas, Texas 75219
Email.- Angie.Mastrocola@Hillwoold.colm
(iii) Notice to the Lender shall be addressed and delivered as fellows.-
Finance Partners, LP
3090 Olive Street, Suite 3,00
Dallas, Texas 75219
Email: Tom.MasongHillwood.core
A party may change its address for notice upon prior written notice to, the
ether parties pursuant to the terms hereof.
C. Texas Law to Apply. This Agreement shall be construed under and in
accordance with the laws, of the State of Texas.
D. Parties Bound,. This Agreement shall be binding upon and inure to the
benefit of the Parties, and their respective legal representatives,,
successors and assigns.
E. Legal Construction. In case any one or more of the previsions
contained in this Agreement shall for any reason is held to be invalid,
illegal, or unenforceable in any respect, such invalidity, illegality,,, or
unenfoirceability shall not affect any other prolvis,ion of this Agreement,
and this Agreement shall be construed as if such invalid, illegal, car
unenforceable provision had never been contained in this Agreement.
F. Prior Awreements Superseded. This Agreement constitutes the sole
and only agreement of the Parties with respect to the subject matter
hereof and supersedes any prior understandings or written or oral
Page 8 of 14
agreements among the Parties, co,ncerning the subject matter hereof;
provided, however, that this Agreement shall not supersede, amend or
modify any of the Loan Documents or any portion thereof.
G. Amendment. This Agreement may only be amended by a written
instrument executed by all of the Parties to his Agreement.
H. ea in The headings that are used in this Agreement are used for
reference and convenience purposes e and do not constitute
substantive matters to be considered in construing the terms and
provisions of this, Agreement.
(REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)
Page 9 of 14
Executed IN QUADRUPLICATE by the Parties hereto.-
CITY OF FORT WORTH.- DEVELOPER:
HILI..,WOOD RESIDENTIAL SERVICES1 L.P.,
a,Texas limited partnership
By-- Hillwood Services GPI, LLC,
a Texas limited liability,company,
its eneral part, er
v
Fernando Costa N ine: 3 64-1 6L,
NJ
Assistant City Manager T tle:\$t -Vpl V
Date: -Date-.,...........
APPROVED AS TO FORM: LENDER:
Finance Partners, LP,
a Texas limited partnership
By: Finance Partners GP, LLC,
Douglas, W. Black a Texas, limited liability company
Ass, start City Attorney its general rtner
4.0
koel�
Marne: M. Thomas Mason
Title- Executive Vice President
ATTEST.-
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BORROWER:
Mary J. K Hillwood RLD, L.P.,
City Secretroy a Texas limited partnership
M&,C. By Hillwood Operating, L.P.,
Date a Texas limited partnership!,
Its general partner
By: Hillwood Services GP, LLC,,
a Texas limited liability company,
its g, 6-1 pa er
BY:
N"arn FTelck ?OA66L,,
Title:
OFFICIAL RECORD
T R
Page 10 of 14 CITY SECRETARY
IV TX
no WORTH:
Jinance Partners', LP, t,he "'Lender" of the Development Loan, is
ex,ecuting this Completion Agreement for the sole purpose of acknowledging
that advances that are made by the Lender pursuant to this Completion
Agreement shall be deemed to be advances that are made under, the Loan that
shall be subject to and covered by the Loan Documents.
Hillwood RLD, L.P. is execufing this Completion Agreement for the
sole purpose of acknowledging and agreeing to the provisions of Borrower in
Section 8 and Section 12 of this Completion Agreement.
LIST OF EXHIBITS TO THE COMPLETION AGREEMENT
EXHIBIT A - LEGAL DESCRIPTION
EXHIBIT B - APPROVED BUDGET
Page I I of 14
DESCRIPTION OF 20.168 ACRES OF LAND
BEING A TRACT OF LAND SITUATED IN TIDE J.P. ALFORD, SURVEY, ABSTRACT
NUMBER 53, AND THE H. ROBERTSON SURVEY1 ABSTRACTNUMBER 1798, BOTH
OF TAIL. NT COUNTY, TEXAS, AND BEING A PORTION OF THAI'TRACT OF LAND
CONVEYED TO HILLWOOD RLD, L.P. BY DEED RECORDED IN VOLUME 16002,
PAGE 3 131 COUNTY RECORDS, TAR RANT COUNTY, TEXAS AND BEING MORE
PARTICULARLY DESCRIBED AS FOLLOWS.-
BEGINNING THE NORTHWEST CORNER OF LOT 1,. BLOCK 16, CREEKWOOD
ADDITION, PHASE 2., AN ADDITION TO THE CITY OF FORT WORTH RECORDED IN
CABINET A, SLIDE 9989, PLAT RECORDS, TARR-ANT COUNTY, TEXAS AND BEING
IN THE EAST LINE OF LOT 54X, BLOCK 27, CREEKWOOD ADDITION, PHASE 3, AN
ADDITION TO THE CITY OF FORT WORTH RECORDED IN CABIN Al SLIDE 115071
SAID PLAT RECORDS,
THENCE N 00001'56"Wl 291.87 FEET;
THENCE N 00`13'0 1"El 190.99 FEET WITH SAID EAST LINE TO THE NORTH RIGHT-
OF-WAY LINE OF FALL WOOD TRAIL (A 50' RIGHT-OF-WAY) AND,THE BEGINNING
01F A NONJANGENT CURVE TO THE RIGHT;
THENCE WITH SAID RIGH-I."-OF-WAY LINE AND SAID NON-TANGENT CURVE TO
THE GHT, AN ARC DISTANCE OF 143.012 FEET, THROUGH A CENTRAL ANGLE OF'
81056'38". HAVING, A RADIUS OF 100.00 FEET, THE LONG CHORD OF WHICH BEARS
N 40"45"18"W7 131.141
THENCE N 00'13'0 1"E, 20.00 FEET WITH SAID RIGHT_O F-WAY LINE TO THE NORTH
LINE OF SAID HILLWOOD RLD,, L.P. TRACT AND BEING IN THE SOUTH LINE OF
THAT TRACT OF LAND, DESCRIBED TO C-85 1'" L.L.C. AND, M-857513MR., L.L.C.
AS RECORDED IN VOLUME 14821,1 PAGE 161 COUNTY RECORDS, TA. NT
COUNTY, TEXAS;
THENCE S 8904659"El 2129.42 FEET WITH SAID CO'MMO,N LINE TO THE NORTH
LINE OF SAID CREEKWOOD ADDITION, PHASE 2;
THENCE WITH THE NORTH LINE OF SAID CREEKWOOD ADDITION, PHASE 2 THE
FOLLOWIN(i` BEARINGS AND DISTANCES;
S 69449'42"W7 625.19 FEET;
S 0001 "3 ""W, 142.44 FEET-
S 64413"32"" , 189.22 FEETTO THE EAST RIGHT-OF-WAY LINE OF ASH
MEADOW DRIVE (A 501 RIGHT-OF-WAY);
Peloton Job No. 1,0_HWR002
Creekwood April 23,20,13
G:\COMMON\PROJECTS\CREEKWOOD\PHASE 4\ENGINEERINGTINAL-AMENDED
PLATS CREEK WOOD4-PLAT—LEG20130419.DOCX Page 1 of2
N 89043"30"Wi 50-00 FEET TO THE WEST RIGHT-OF-WAY LINE OF SAID ASH
MEADOW DRIVE,
S 000 163 1"W' 20.70, FEET WITH SAID 'BEST RIGHT-OF-WAY UN E;
S 86030'50"W`7 88.65 FEET DEPARTING SAID RIGHT-OF-WAY LINE,-
S 75001'58"W17 72.,08 FEET,
67043" 6 T-
S 0 "Wil 72.08 FEEI
S 63 "3 ""W, 68.618 FEET,
S 61"10'18"Wi 56.25 FEET,-
S, 700312'19"Wi 56.,52 FEETI
S 82'06'45"W 56.56 FEET"-
N 89043'30"W1l 178.15 FEET;
S 75004'52"W7 62.17 FEET;
N 89043'310"Wi 180.00 FEET;
N 78034'111"W1 66.25 FEET;
N 89043'30"Wi 65.00 FEET;
N 84057"41""W, 60.2,1 FEET';
THENCE N 8904330"W1 185.00 FEET TO THE POINT OF BEGINNING AND
CONTAINING 878496, SQUARE FEET OR 20.168 ACRES OF LAND MORE OR LESS.
THIS DESCRIPTION IS FOR INFORMATIONAL PURPOSES ONLY
Peloton Job No. I 0HWR002
Creekwood April 231,2013
G-\COMMON'\PRO.IECTS\CR.EEKWOOD,\,PHASE 4\ENGINEERINIG\lIN"AL-AMENDE,D
P I..ATS\C REEK WOOD4-PLAT'-LEG20130419.D ,CX Page 2 of 2
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