HomeMy WebLinkAboutOrdinance 27552-03-2025Ordinance No. 27552-03-2025
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE PROPERTY MANAGEMENT DEPARTMENT
WITHIN THE GENERAL FUND, IN THE AMOUNT OF $3,450,000.00, FROM
AVAILABLE FISCAL YEAR 2024 ASSIGNED FUND BALANCE, FOR THE
PURPOSE OF FUNDING THE ACQUISITION OF A FEE SIMPLE INTEREST IN
APPROXIMATELY 6.84 ACRES OF LAND LOCATED AT 4550 VILLAGE
CREEK ROAD, FORT WORTH, TARRANT COUNTY, TEXAS 76119 1 IN
SETTLEMENT OF THE LAWSUIT ENTITLED ISF 4550 VILLAGE CREEK, LLC
V. CITY OF FORT WORTH, TEXAS, CAUSE NO. 4:24-CV-770 IN THE UNITED.
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS,
FORT WORTH DIVISION; PROVIDING FOR A SEVERABILITY CLAUSE;
MAKING THIS ORDINANCE CUMULATIVE OF PRIOR ORDINANCES;
REPEALING ALL ORDINANCES IN CONFLICT HEREWITH; AND
PROVIDING AN EFFECTIVE DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH , TEXAS:
SECTION
1.
That in addition to those amounts allocated to the various City departments for Fiscal Year 2024;-2025 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the
Property Management Department within the General Fund in the amount of $3,450,000.00, from available
Fiscal Year 2024 Assigned Fund Balance, for the purpose of funding the acquisition of a fee simple interest in
approximately 6.84 acres of land located at 4550 Village Creek Road, Fort Worth, Tarrant County,
Texas 76119 in settlement of the lawsuit entitled ISF 4550 Village Creek, LLC v. City of Fort Worth, Texas,
Cause No. 4:24-cv-770 in the United States District Court for the Northern District of Texas, Fort Worth
Division.
SECTION
2.
That should any portion, section or part of section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent j urisdiction, such decision, opinion or judgment shall in no way impair
the remaining portions, sections, or parts of sections of this ordinance, which said remaining prof`visions shall
be and remain in full force and effect.
SECTION
3.
That this ordinance shall be cumulative of Ordinance 27107-09-2024 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
Ordinance No. 27550-04-2025
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
ADOPTED AND EFFECTIVE: March 25, 2025
CITY SECRETARY
dannette S. Goodall
City Secretary
City of Fort Worth,
Mayor and
Texas
Council Communication
DATE: 03/25/25 M&C FILE NUMBER: M&C 25-0244
LOG NAME: 121SF 4550 VILLAGE CREEK SETTLEMENT
SUBJECT
(ALL) Authorize Settlement and Payment in the Amount of $3,405,000.00 as Full and Final Settlement of All Claims Related to the Lawsuit Entitled
ISF 4550 Village Creek, LLC v. City of Fort Worth, Texas, Cause No. 4:24-cv-770 in the United States District Court�for the Northern District of
Texas, Fort Worth Division, Including the Acquisition of a Fee Simple Interest in Approximately 6.84 Acres of Land Located at 4550 Village Creek
Road, Fort Worth, Tarrant County, Texas, 76119 from ISF 4550 Village Creek LLC, Pay Estimated Closing Costs in an Amount Up to
$50,000.00, Adopt Appropriation Ordinance, and Amend the Fiscal Year 2025 Adopted Budget
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize settlement and payment in the total amount of $3,405,000.00 to ISF 4550 Village Creek, LLC for full and final settlement of all
claims related to the lawsuit entitled ISF 4550 Village Creek, LLC v. City of Fort Worth, Texas, Cause No. 4:24-cv-770 in the United States
District Court for the Northern District of Texas, Fort Worth Division;
2. In conjunction with the settlement, authorize the acquisition of a fee simple interest in approximately 6.84 acres of land located at 4550
Village Creek Road, Fort Worth, Tarrant County, Texas, 76119 from ISF 4550 Village Creek LLC and pay estimated closing costs in an
amount up to $50,000.00; 1
3. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Property Management Department of
the General Fund in the amount of $3,450,000.00 from available Fiscal Year 2024 Assigned Fund Balance forl`the purpose of funding the
acquisition of a fee simple interest in approximately 6.84 acres of land located at 4550 Village Creek Road, Fort Worth, Tarrant County,
Texas 76119 in settlement of the lawsuit entitled ISF 4550 Village Creek, LLC v. City of Fort Worth, Texas, Cause No. 4:24-cv-770 in the
United States District Court for the Northern District of Texas, Fort Worth Division; and
4. Amend the Fiscal Year 2025 Adopted Budget.
DISCUSSION:
The City was sued in the lawsuit entitled ISF 4550 Village Creek, LLC v. City of Fort Worth, Texas, Cause No. 4:24-cv-770 in the United States
District Court for the Northern District of Texas, Fort Worth Division for alleged damages resulting from rezoning the properly. The parties have
agreed to fully and finally settle all matters through the City's purchase of the properly for $3,405,000.00 and closing costs.
As part of the Fiscal Year 2024 year-end process, the City Manager assigned $56,507,497.00 from the Fiscal Year 2024 fund balance to address
future capital shortfalls and library capital projects, as authorized by Mayor and Council (M&C) 25-0003. This assigned amount exceeds the
General Fund reserve requirements and is composed of the following sources: $9,472,519.00 from the sale of library property residuals,
$14,627,444.00 from capital project shortfalls funded by the remaining assigned fund balance from FY2023, $7,690,534.00 from FY2024
budgetary savings, and $24,717,000.00 from one-time interest earnings.
This action in the M&C will amend the Fiscal Year 2025 Adopted Budget, as approved in connection with Ordinance 27107-09-2024.
Approval of this M&C will reduce the Assigned Fund Balance for capital project as follows:
General Fund
Original
Amount
This M&C
Remaining
Balance
25-0003
FY2024 Assigned
($3,450,000.00)
Fund Balance -
$47,034,978.00
$43,584,978.00
Capital Project
FY2024 Assigned
Fund Balance -
$9,472,519.00
Library Capital
$0
$9,472,519.00
Projects
Total Remaining
Assigned Fund
$561507,497.00
i
Balance for
($3,450,000.00)
$53,057,497.00
Capital
i
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity. !
ISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that funds are currently available in the General Fund Fiscal Year 2024 Assigned Fund Balance and upon
approval of the above recommendation(s) and adoption of the attached appropriation ordinance(s), funds will be available in the Property
Management Department within the General Fund. Priar to an expenditure being incurred, the Property Management and the City Attorneys
Office has the responsibility of verifying the availability of funds.
Submitted for Cijy Mana ees Office b : ALL ACMs 6122
Originating_ Business Unit Head: Leann Guzman 8973
Additional Information Contact: Leann Guzman 8973