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HomeMy WebLinkAboutContract 45725-CA3Page 1 of 6 City Consent to Assignment of Economic Development Program Agreement Between the City of Fort Worth, FW Waterside Partners, LLC, and Georgetown Waterside, LLC CONSENT TO ASSIGNMENT OF ECONOMIC DEVELOPMENT PROGRAM AGREEMENT (CITY SECRETARY CONTRACT NO. 45725) THIS CONSENT TO ASSIGNMENT OF ECONOMIC DEVELOPMENT PROGRAM AGREEMENT (“Consent”) is made by and among FW Waterside Partners, LLC, a Delaware limited liability company (“Company”), the City of Fort Worth Texas, a home-rule municipality organized under the laws of the State of Texas (“City”), and Georgetown Waterside, LLC, a Delaware limited liability company ( “Assignee”). Company, City, and Assignee are hereinafter sometimes referred to individually as a "Party" and collectively as the "Parties." WHEREAS, the City and Trademark Property Company entered into that certain Economic Development Program Agreement (City Secretary Contract Number 45725) (as amended, the “EDPA”) dated effective as of July 1, 2014; WHEREAS, the City and Company entered into that certain Amendment No. 1 to Economic Development Program Agreement (City Secretary Contract Number 45725-A1) dated effective as of August 2, 2016; WHEREAS, the City and Company entered into that certain Amendment No. 2 to Economic Development Program Agreement (City Secretary Contract Number 45725-A2) dated effective as of April 12, 2017; WHEREAS, the City and Company entered into that certain Amendment No. 3 to the Economic Development Program Agreement (City Secretary Contract Number 45725-A3) dated effective as of December 11, 2018; WHEREAS, under the EDPA, the Company agreed to construct a mixed-use development on certain real property in the City in the vicinity of Bryant Irvin Road and Arborlawn Drive in stages at three potential levels of investment, all as set forth in the EDPA. In return, the City agreed to pay Company certain Program Grants, as more specifically provided for in the EDPA; WHEREAS, as of the Effective Date (as herein defined), Company has satisfied all terms and conditions for Level 2 Development set forth in the EDPA, resulting in an increase in the Program Cap equal to Eighteen Million Dollars ($18,000,000.00), gross. WHEREAS, Company desires to assign all of its rights and obligations under the EDPA to Assignee; WHEREAS, Company and Assignee intend to enter into a separate agreement pursuant to which Company has agreed to assign to Assignee and Assignee has agreed to assume from Company the rights and obligations of Company under the EDPA; and WHEREAS, pursuant to Section 10 of the EDPA, Company may not assign, transfer or otherwise convey any of its rights or obligations under the Agreement to any other person or entity without the consent of the City Council, which consent shall not be unreasonably withheld, conditioned on (i) the prior approval of the assignee and a finding by the City Council that the proposed assignee is financially capable of meeting the terms and conditions of the EDPA and (ii) prior execution by the proposed assignee of a written agreement with the City under which the proposed assignee agrees to assume and be bound by all covenants and obligations of Company under the EDPA. Accordingly, Company, Assignee, and City desire to enter into this Consent to confirm satisfaction of the conditions precedent to the City’s consent to the assignment of the EDPA from Company to Assignee. Page 2 of 6 City Consent to Assignment of Economic Development Program Agreement Between the City of Fort Worth, FW Waterside Partners, LLC, and Georgetown Waterside, LLC NOW THEREFORE for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1.The Parties agree that the recitals, which are incorporated herein by reference, set forth above are true and correct and form the basis upon which they are entering into this Consent. 2.Following the prior approval of the Assignee by the City Council and a finding by the City Council that the Assignee is financially capable of meeting the terms and conditions of the EDPA, the City hereby consents to the assignment by Company to Assignee of all right, title and interest granted to Company by the EDPA, subject to the terms and conditions of this Consent, effective on the date on which the City, Company, and Assignee have all executed this Consent (“Effective Date”). 3.The City consents to such assignment expressly upon the promise and covenant by Assignee, and Assignee hereby promises and covenants to the City, that Assignee, regardless of whether, at the time of execution hereof by Assignee, there have been, or will later be, other agreements executed between Assignee and Company related to this assignment,, will comply with and assume all duties and obligations of Company set forth in the EDPA arising on and after the Effective Date. Company shall comply with and be liable for performance of all duties and obligations of Company arising prior to the Effective Date. 4.Notwithstanding anything to the contrary herein, Assignee understands and agrees that no act or omission of Company, whether before or after the Effective Date, will serve to mitigate any event of default set forth in Section 6 of the EDPA or elsewhere therein, or any failure to meet any or all of the numerical, and other, commitments for real property improvements, construction spending, employment and supply and service spending as set forth in Section 4 of the EDPA. 5.By executing this consent, the City does not ratify or endorse any agreement or representation between Company and Assignee; grant Assignee any right greater than those granted to Company under the EDPA; or consent to any amendment to the EDPA other than Amendment No. 1, Amendment No. 2, and Amendment No. 3 to Economic Development Program Agreement previously entered into by City and Company. 6.The EDPA is in full force and effect and except for Amendment No. 1, Amendment No. 2, and Amendment No. 3 to Economic Development Program Agreement previously entered into by City and Company, has not been modified, supplemented, or amended unless specifically set forth herein. 7.As of the date of execution of this Consent by the City, to the knowledge of the City, there exists no factual circumstance or condition which, with notice or the lapse of time, or both, would give rise to any obligation of any party to the EDPA which, if not satisfied, will constitute and event of default on the part of either the City or Company. 8.The Parties agrees that each party to this assignment shall be entitled to rely upon the statements of the other parties set forth in this Consent. 9.This Consent may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall be constitute one instrument. 10.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 Page 3 of 6 City Consent to Assignment of Economic Development Program Agreement Between the City of Fort Worth, FW Waterside Partners, LLC, and Georgetown Waterside, LLC facsimile transmission) of an original signature, or signatures electronically inserted via software such as Adobe Sign or DocuSign. 11.Any notice given by any Party to another Party must be in writing and shall be effective upon receipt when (i) sent by U.S. mail with property postage, certified mail return receipt requested or by a nationally recognized overnight delivery service, and (ii) addressed to the other Party at the address set out below or at such other address as the receiving Party designates by proper notice to the sending Party. City Economic Development Department 100 Fort Worth Trail Fort Worth TX 76102 Attention: Director With a copy to: City of Fort Worth 100 Fort Worth Trail Fort Worth TX 76102 Attention: City Attorney Company FW Waterside Partners, LLC 1701 River Run, Suite 500 Fort Worth, Texas 76107 Attention: Kevin Kessinger Assignee Georgetown Waterside, LLC c/o The Georgetown Company, LLC 500 Park Avenue, 10th Floor New York, New York 10022 Attention: Jonathan Schmerin 12. Capitalized terms not otherwise defined herein shall have the meaning set forth in the EDPA; (Signatures appear on the following pages) Page 4 of 6 City Consent to Assignment of Economic Development Program Agreement Between the City of Fort Worth, FW Waterside Partners, LLC, and Georgetown Waterside, LLC EXECUTED as of the Effective Date. COMPANY: FW WATERSIDE PARTNERS LLC, a Delaware limited liability company, By: Trademark Waterside, L.P., a Texas limited partnership its managing member By: TW Genpar, LLC, a Texas limited liability company, its general partner By: Kevin Kessinger, President Page 5 of 6 City Consent to Assignment of Economic Development Program Agreement Between the City of Fort Worth, FW Waterside Partners, LLC, and Georgetown Waterside, LLC ASSIGNEE: GEORGETOWN WATERSIDE, LLC, a Delaware limited liability company By: ___________________________________ Adam Flatto, Authorized Signatory Page 6 of 6 City Consent to Assignment of Economic Development Program Agreement Between the City of Fort Worth, FW Waterside Partners, LLC, and Georgetown Waterside, LLC CITY OF FORT WORTH: By: ___________________________ William Johnson Assistant City Manager Date: ___________________________ APPROVAL RECOMMENDED: By: ______________________________ Robert Sturns Director, Economic Development ATTEST: By: ______________________________ Jannette Goodall City Secretary 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 Hennig Strategic Development Coordinator APPROVED AS TO FORM AND LEGALITY: By: ______________________________ Lawrence C. Collister Senior Assistant City Attorney CONTRACT AUTHORIZATION: M&C: C-26698 (March 4, 2014); C-27774 (June 21, 2016); C-28149 (March 21, 2017; C-28965 (December 11, 2018); M&C 25-0106 (February 11, 2025) Form 1295: 2016-44841; 2017-166042; 2018- 426179; 2025-1257456; 2025-1256634 2/12/25, 8:57 AM CITY COUNCIL AGENDA Create New From This M8�C DATE: 2/11/2025 REFERENCE **M&C 25- NO.: 0106 F� RT �'�0 R71 � -��- LOG NAME: 17WATERSIDEASSIGNMENT CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (CD 3) Authorize Execution of a Consent to Assignment of City Secretary Contract Number 45725, as Amended, an Economic Development Program Agreement with FW Waterside Partners LLC, to Allow Assignment of the Agreement to Georgetown Waterside, LLC or an Affiliate RECOMMENDATION: It is recommended that the City Council authorize the execution of a consent to assignment of City Secretary Contract No. 45725, as amended, an Economic Development Program Agreement with FW Waterside Partners LLC, to allow an assignment of the agreement to Georgetown Waterside, LLC or an affiliate. DISCUSSION: The purpose of this Mayor and Council (M&C) Communication is to authorize a Consent to Assignment of City Secretary Contract (CSC) No. 45725, as amended, an Economic Development Program Agreement (Agreement), to allow an assignment from FW Waterside Partners LLC (Assignor) to Georgetown Waterside, LLC or an affiliate (Assignees) The City and the Assignor are currently parties to the Agreement, under which the City agreed to pay the Assignor certain economic development program grants in return for the Assignor's construction of the mixed-use development at Bryant Irvin Road and Arbolawn Drive. (M&C Nos. C-26698, C-27774, C-28149, C-28965). The amount of each annual grant is capped at 80 percent for the first five grants, 75 percent for the second five grants, and 70 percent for the final five grants of increased real and personal property taxes as well as sales taxes attributable to the site. In addition, the aggregate amount of grants that Trademark can receive over the 15-year period is dependent on whether Trademark meets one of three possible levels of investment and construction defined in the agreement. On October 10, 2014, Trademark Property, LLC assigned all of its rights and obligations under the Agreement to the Assignor. The Assignor now desires to assign their rights and obligations under the Agreement to Georgetown Waterside, LLC. The City has also previously consented to assignments of this Agreement for security purposes to JPMorgan Chase Bank, N.A. (CSC 45725-CA2). The Assignors met all obligations required by the Agreement, and the Assignee will be required to meet all ongoing obligations of under the Agreement. The City will continue to receive the public benefits resulting from the development of this project. Any future assignment of the Agreement by the Assignee would have to be approved by City Council, unless otherwise agreed to in the Agreement. There are up to nine (9) grant years remaining under the agreement. Staff represents that the Assignee is financially capable of ineeting the terms and conditions of the Agreement, and City Council finds for the same. Staff recommends approving the Consent to Assignment of the Agreement. The Waterside development is located in COUNCIL DISTRICT 3. FISCAL INFORMATION/CERTIFICATION: M&C Review apps.cfwnet.org/council_packet/mc_review.asp?ID=32970&councildate=2/11 /2025 1 /2 2/12/25, 8:57 AM M&C Review The Director of Finance certifies that approval of this agreement will have no material effect on the Fiscal Year 2025 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. TO �Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year Chartfield 2 Submitted for City Manager's Office by_ Originating Department Head: Additional Information Contact: ATTACHMENTS 2968 001.pdf (CFW Internal) Form 1295 Certificate 101311606.pdf (CFW Internal) William Johnson (5806) Robert Sturns (2663) Robert Sturns (2663) apps.cfwnet.org/council_packet/mc_review.asp?ID=32970&councildate=2/11 /2025 2/2