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HomeMy WebLinkAboutContract 63434CSC No. 63434 CONTRACT OF SALE AND PURCHASE THIS CONTRACT OF SALE AND PURCHASE ("Contract") is made and entered into by and between the BILLY JACK MCGEE, JR. ("Purchaser"), an individual, and the CITY OF FORT WORTH ("Seller"), a home -rule municipal corporation of the State of Texas, acting by and through its duly authorized Assistant City Manager, as of the date on which this Contract is executed by the last to sign of Seller and Purchaser ("Effective Date"). RECITALS WHEREAS Seller is the owner of a certain property described as Lot 27, Block 5 of Hill -Crest Addition, an addition to the City of Fort Worth, Tarrant County, Texas as recorded in Volume 388, Page 17 of the Plat Records of Tarrant County, Texas and also known as 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 (Tarrant Appraisal District Account No. 01274597); and WHEREAS Section 253.014 of the Texas Local Government Code allows a municipality to sell its property by contracting with a broker, provided that the property is listed with a multiple -listing service for at least thirty (30) days and that the property is sold to the buyer who submits the highest cash offer; and WHEREAS the Seller contracted with Reflect Real Estate, LLC, a licensed broker, and, on or about November 30, 2024, the property located at 2221 Western Avenue was listed for $100,000.00; and WHEREAS the Purchaser submitted the highest cash offer in the amount of Two Hundred Fifty - Four Thousand Dollars and No/100 ($254,000.00). AGREEMENT In consideration of the mutual covenants in this Contract, Seller and Purchaser agree as follows: Section 1. Sale and Purchase. (a) Seller agrees to sell and convey to Purchaser and Purchaser agrees to purchase and accept from Seller, on and subject to the terms and conditions set forth in this Contract, the real property described as Lot 27, Block 5 of Hill -Crest Addition, an addition to the City of Fort Worth, Tarrant County, Texas as recorded in Volume 388, Page 17 of the Plat Records of Tarrant County, Texas and also known as 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 (Tarrant Appraisal District Account No. 01274597) (the "Land"), as more particularly described in Exhibit "A." attached hereto and incorporated herein for all purposes, together with all of Seller's rights, titles and interests, if any, in and to (i) all buildings, fixtures, structures and improvements thereon; (ii) any strips or gores between the Land and all abutting properties; (iii) any land lying in the bed of any street, road or access way, opened or proposed, in front of, at a side of or adjoining the Land, to the centerline of such street, road or access way; and (iv) all licenses, interests, and rights appurtenant to the Land. The Land and Items (i)-(iv) are collectively referred to as the "Property." (b) Seller shall convey the Property to Purchaser free and clear of all liens, claims, easements, rights -of -way, reservations, restrictions, encroachments, tenancies, and any other encumbrances (collectively, the "Encumbrances") except the Encumbrances appearing in the Title OFFICIAL RECORD Contract of Sale and Purchase CITY SECRETARY Page- 1 - of 31 2221 Western Avenue FT. WORTH, Tx Commitment and the Survey (hereinafter defined) that are not cured and that are subsequently waived pursuant to Section 3 ("Permitted Encumbrances"). (c) Notwithstanding anything to the contrary, Seller shall retain and reserve from the conveyance (and the Property does not include) for itself, and its successors and assigns, any and all interest in any and all oil, gas and other minerals (collectively "Minerals") in, on, or under the Land; provided, however, Seller shall waive and relinquish access to any use of the surface oftheProperty. The waiver of surface rights by Seller shall never be construed to prevent Seller, or Seller's heirs, successors or assigns, from developing or producing the Minerals in, on and under the Property by pooling or by directional drilling under the Property from well sites located on tracts outside the Property. Section 2. Earnest Monev, Purchase Price, and Independent Consideration. (a) Within five (5) calendar days after the Effective Date, Purchaser must deliver to the Title Company as escrow agent an Earnest Money deposit of Two Thousand Five Hundred Forty Dollars and No/100 ($2,540.00) in cash funds (the "Earnest Money"); however, upon Closing (as hereinafter defined), the Earnest Money shall be applied as a credit toward the Purchase Price (as hereinafter defined). All Earnest Money will be (i) refunded to Purchaser if Purchaser terminates the Contract prior to the expiration of the Option Period (hereinafter defined) or (ii) paid to Seller if Purchaser does not terminate and the Earnest Money is payable to Seller pursuant to Section 14(a) of this Contract. (b) The purchase price ("Purchase Price") for the Property, payable by Purchaser to Seller at Closing, is Two Hundred Fifty -Four Thousand Dollars and No/100 ($254,000.00) to be paid in cash at Closing. (c) Contemporaneously with the Effective Date hereof, Purchaser shall deliver to Seller a check in the amount of One Hundred and 00/ 100 Dollars ($100.00) ("Independent Consideration"), which amount the parties bargained for and agreed to as consideration for Seller's execution and delivery of this Contract. This Independent Consideration is in addition to and independent of any other consideration or payment provided in this Contract, is non-refundable and shall be retained by Seller notwithstanding any other provisions of this Contract. If the transaction set forth in this Contract closes, Purchaser shall receive a credit against the Purchase Price in the amount of the Independent Consideration. Section 3. Title Commitment and Survev. (a) Within ten (10) calendar days after the Effective Date, Purchaser shall obtain, at Purchaser's sole cost and expense, a Commitment for Title Insurance ("Title Commitment") from McKnight Title Company (the "Title Company"). The Title Commitment shall be effective as of a date which is on or after the Effective Date, showing Seller as the record title owner of the Land, and shall show all Encumbrances and other matters, if any, relating to the Property. The Title Company shall also deliver to Purchaser, contemporaneously with the Title Commitment, legible copies of all documents referred to in the Title Commitment, including but not limited to, plats, reservations, restrictions, and easements. (b) Purchaser may obtain a survey of the Property ("Survey") at Purchaser's sole cost and expense. If obtained by Purchaser, the description of the Property prepared as a part of the Survey will be used in all of the documents set forth in this Contract that require a legal description of the Property. Contract of Sale and Purchase Page - 2 - of 31 2221 Western Avenue (c) Purchaser shall have a period of time ("Title Review Period") commencing on the Effective Date and ending ten (10) calendar days after Purchaser's receipt of the Title Commitment in which to notify Seller in writing of any objections ("Objections") Purchaser has to any matters shown on the Title Commitment or the Survey. Purchaser will provide written notice of its Objections to Seller with a copy to the Title Company on or before the expiration of the current Title Review Period. (d) Seller shall have the option, but not the obligation, to remedy or remove all Objections (or agree irrevocably in writing to remedy or remove all such Objections at or prior to Closing) during the period of time (the "Cure Period") ending on the tenth (10"') business day after Seller's receipt of Purchaser' s notice of such Objections. Except to the extent that Seller cures, or agrees in writing to cure, such Objections during the Cure Period, Seller shall be deemed to have elected not to cure such matters. If Seller is, or is deemed to be, unable or unwilling to remedy or cause the removal of any Objections (or agree irrevocably to do so at or prior to Closing) within the Cure Period, then either (i) this Agreement may be terminated in its entirety by Purchaser by giving Seller written notice to such effect during the period of time (the "Termination Period") ending on the fifth (5th) business day following the end of the Cure Period, and the parties shall be released of further obligations under this Agreement; or (ii) any such Objections may be waived by or on behalf of Purchaser, with Purchaser to be deemed to have waived such Objections if notice of termination is not given within the Termination Period. Any title encumbrances or exceptions which are set forth in the Title Commitment or the Survey and to which Purchaser does not object within Title Review Period (or which are thereafter waived or deemed to be waived by Purchaser) shall be deemed to be permitted exceptions (the "Permitted Exceptions") to the status of Seller's title to the Property. (e) Any other provision herein to the contrary notwithstanding, (i) all exceptions disclosed in the Title Commitment (or any subsequent commitment) which arise on or after the Effective Date of this Agreement and are not attributable to actions by Purchaser, and which may be cured by the payment of money, and (ii) all Objections that Seller agrees in writing to cure at or prior to Closing (collectively, the "Mandatory Cure Items") shall be satisfied, cured or removed by Seller, at Seller's sole cost and expense, at or prior to Closing. Section 4. Due Diligence Documents. Within ten (10) calendar days after the Effective Date, Seller shall deliver to Purchaser for Purchaser's review, to the extent in Seller's possession or reasonable control, (i) any and all tests, studies, surveys, and investigations relating to the Property, including, without limitation, any soil tests, engineering reports or studies, and any Phase I or other environmental audits, reports or studies of the Property; (ii) any and all information regarding condemnation notice(s), proceedings and awards affecting the Property; (iii) any existing surveys of the Property (the "Due Diligence Material"). Section 5. Tests. During the Option Period (hereinafter defined) Purchaser, at Purchaser's sole cost and risk, shall have the right to go on to the Property to make inspections, surveys, test borings, soil analysis, and other tests, studies and surveys, including without limitation, environmental and engineering tests, borings, analysis, and studies ("Tests"). Any Tests shall be conducted at Purchaser's sole expense. At the conclusion of the Tests, Purchaser shall repair any damage caused to the Property by Purchaser or its agents, employees, representatives, consultants or contractors (collectively "Purchaser's Agents") in connection with Purchaser's Tests and the Property will be restored by Purchaser, at Purchaser's sole expense, to at least a similar condition as before the Tests were conducted. Purchaser shall keep the Property free and clear of any liens for any such Tests. Purchaser shall indemnify and hold Seller harmless from and against all losses, claims, costs, damages and liabilities arising out of or in connection with any entry upon the Property by Purchaser and Purchaser's Agents, and their respective agents, employees and contractors. Notwithstanding anything to the contrary in this Contract, Purchaser's obligation to repair damages to the Property Contract of Sale and Purchase Page - 3 - of 31 2221 Western Avenue and to indemnify Seller pursuant to this Section (collectively the "Surviving Obligations") will survive the termination of this Contract and shall survive Closing. In the event this transaction does not close for any reason whatsoever, the Purchaser shall release to Seller any and all independent studies or results of Tests obtained during the Option Period (as defined below). Section 6. Option Period. (a) Notwithstanding anything to the contrary contained in this Contract, until thirty (30) days after the Effective Date ("Option Period"), the following is a condition precedent to Purchaser's obligations under this Contract: Purchaser being satisfied in Purchaser's sole and absolute discretion that the Property is suitable for Purchaser's intended uses, including, without limitation, Purchaser being satisfied with the results of the Tests (defined in Section 5 above). (b) If Purchaser is not satisfied in Purchaser's sole and absolute discretion as to the condition precedent described in Section 6(a) above, Purchaser may give written notice thereof to Seller on or before the end of the Option Period, whereupon this Contract shall terminate. Upon such termination, the Contract will terminate, and neither party shall have any further rights or obligations under this Contract except the Surviving Obligations. (c) The provisions of this Section 6 control all other provisions of this Contract. Section 7. Closing Deadline. The closing ("Closing") of the sale of the Property by Seller to Purchaser shall occur through the office of the Title Company on or before thirty (30) calendar days after the expiration of the Option Period. Section 8. Closing. (a) At the Closing, all of the following shall occur, all of which are deemed concurrent conditions: (1) Seller shall deliver or cause to be delivered to Purchaser the following: (i) A Special Warranty Deed ("Deed"), in substantially the same form attached hereto as Exhibit "B". fully executed and acknowledged by Seller, conveying to Purchaser good and indefeasible fee simple title to the Property subject only to the Permitted Encumbrances, but containing a reservation of the mineral rights, the reservation of a permanent drainage facility easement, and subject to certain conditions and a repurchase right in favor of Seller; (ii) A Non -Foreign Person Affidavit, in form and substance reasonably satisfactory to Purchaser, fully executed and acknowledged by Seller, confirming that Seller is not a foreign person or entity within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended; (iii) Evidence of authority to consummate the sale of the Property as is contemplated in this Agreement or as Purchaser may reasonably request; and Contract of Sale and Purchase Page - 4 - of 31 2221 Western Avenue (iv) Any other instrument or document reasonably necessary for Title Company to issue the Owner Policy in accordance with Section 8(a)(3) below. (2) Purchaser, at Purchaser's sole cost and expense, shall deliver or cause to be delivered to Seller through the Title Company federally wired funds or a certified or cashier's check or such other means of funding acceptable to Seller, in an amount equal to the Purchase Price, adjusted for closing costs and prorations as provided in this Contract. (3) Title Company shall issue to Purchaser, at Purchaser's sole cost and expense, an Owner Policy of Title Insurance ("Owner Policy") issued by Title Company in the amount of the Purchase Price insuring that, after the completion of the Closing, Purchaser is the owner of indefeasible fee simple title to the Property, subject only to the Permitted Encumbrances, and the standard printed exceptions included in a Texas Standard Form Owner Policy of Title Insurance; provided, however, subject to the delivery to Title Company of a survey of the Property approved by the Title Company, and the payment of the appliable premium by Purchaser, the printed form survey exception shall be limited to "shortages in area," the printed form exception for restrictive covenants shall be deleted except for those restrictive covenants that are Permitted Encumbrances, there shall be no exception for rights of parties in possession, and the standard exception for taxes shall read: "Standby Fees and Taxes for the year of Closing and subsequent years, and subsequent assessments for prior years due to change in land usage or ownership, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year"; (4) Purchaser shall each pay all escrow fees charges by the Title Company. All recording fees and any other closing costs as set forth by the Title Company shall be paid the Purchaser. (b) Seller qualifies for exemption from ad valorem taxation for the Property, and no ad valorem taxation shall accrue after the date of Closing. Therefore, any ad valorem taxes assessed against the Property for the current year shall only be for the period of time the Property was owned by Purchaser. As soon as the amount of taxes and assessments on the Property for the current year is known, Purchaser shall be responsible for any and all taxes and assessments applicable to the Property on and after the date of Closing. The provisions of this Section 8(b) survive the Closing. (c) Upon completion of the Closing, Seller shall deliver possession of the Property to Purchaser, free and clear of all tenancies of every kind except those disclosed in the Permitted Encumbrances. Section 9. Seller's Representations. Seller hereby represents and warrants to Purchaser, as of the Effective Date and as of the Closing Date, except as otherwise disclosed in written notice from Seller to Purchaser at or prior to Closing, that: (a) Seller's Authority. This Contract has been duly authorized by requisite action and is enforceable against Seller in accordance with its terms; neither the execution and delivery of this Agreement nor the consummation of the sale provided for herein will constitute a violation or breach by Seller of any provision of any agreement or other Contract of Sale and Purchase Page- 5 - of 31 2221 Western Avenue instrument to which Seller is a party or to which Seller may be subject although not a party, or will result in or constitute a violation or breach of any judgment, order, writ, junction or decree issued against or binding upon Seller or the Property; (b) No Pending Proceedings. There is no action, suit, proceeding or claim affecting the Property or any portion thereof, or affecting Seller and relating to the ownership, operation, use or occupancy of the Property, pending or being prosecuted in any court or by or before any federal, state, county or municipal department, commission, board, bureau, or agency or other governmental entity and no such action, suit, proceeding or claim is threatened or asserted; (c) Seller is Not a Foreign Person. Seller is not a foreign person or entity as defined in Section 1445 of the Internal Revenue Code of 1986, as amended, and Purchaser is not obligated to withhold any portion of the Sales Price for the benefit of the Internal Revenue Service; (d) No Insolvency Proceedings. No attachment, execution, assignment for the benefit of creditors, receivership, conservatorship or voluntary or involuntary proceedings in bankruptcy or pursuant to any other debtor relief laws is contemplated or has been filed by or against Seller or the Property, nor is any such action pending by or against Seller or the Property; (e) Contract Obligations. To the best of Seller's actual knowledge, except as otherwise disclosed in the Title Commitment or disclosed to Purchaser during the Option Period, no lease, contract or agreement exists relating to the Property or any portion thereof which is not terminable at will or upon not more than 30 days' prior notice except tenant leases; (f) No Competing Rights. No person, firm or entity, other than Purchaser, has any right to purchase, lease or otherwise acquire or possess the Property or any part thereof; (g) No Regulatory Violations. Seller has not received written notice that the Property is in breach of any law, ordinance or regulation, or any order of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality wherever located, including, without limitation, those relating to environmental matters and hazardous waste, and no claim, action, suit or proceeding is pending, nor has Seller received written notice of any additional inquiry or investigation, threatened against or affecting Seller or affecting the Property, at law or in equity, or before or by any federal, state, municipal or other governmental department, commission, board, bureau, agency or entity wherever located, with respect to the Property or the Seller's present use and operation of the Property; and (h) No Hazardous Materials. To Seller's actual knowledge, without inquiry or investigation, except as disclosed by the Due Diligence Material: (i) all required federal, state and local permits concerning or related to environmental protection and regulation for the Property have been secured and are current; (ii) Seller is and has been in full compliance with such environmental permits and other requirements regarding environmental protection under applicable federal, state or local laws, regulations or ordinances; (iii) there is no pending action against Seller under any environmental law, regulation or ordinance and Seller has not received written notice Contract of Sale and Purchase Page - 6 - of 31 2221 Western Avenue of any such action or possible action; (iv) there is not now, nor has there been in the past, any release of hazardous substances on, over, at, from, into or onto any facility at the Property, as such terms are understood under the Comprehensive Environmental Response, Compensation and Liability Act; and (v) Seller does not have actual knowledge of any environmental condition, situation or incident on, at or concerning the Property that could reasonably be expected to give rise to an action or to liability under any law, rule, ordinance or common law theory governing environmental protection. PURCHASER IS RELYING ON PURCHASER'S OWN DUE DILIGENCE INVESTIGATION IN MAKING ITS DECISION TO PURCHASE THE PROPERTY AND HAS NOT RELIED ON ANY REPRESENTATIONS OR WARRANTIES OF SELLER OR ANYONE ACTING ON BEHALF OF SELLER, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS CONTRACT. EXCEPT AS SET FORTH IN THE DEED AND IN THIS CONTRACT, THE PROPERTY IS BEING SOLD "AS IS" AND WITHOUT ANY REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, EXCEPT AS EXPRESSLY PROVIDED IN THIS CONTRACT, SELLER MAKES NO REPRESENTATION OR WARRANTY AS TO WHETHER THE PROPERTY IS IN VIOLATION OF ANY CITY, STATE OR FEDERAL LAWS, RULES, CODES, ORDERS, REGULATIONS OR ORDINANCES (COLLECTIVELY CALLED "LAWS"), INCLUDING, WITHOUT LIMITATION, ANY LAWS RELATING TO THE ENVIRONMENTAL CONDITION OF THE PROPERTY. THIS PROVISION SHALL SURVIVE THE CLOSING AND SHALL BE INCLUDED IN THE DEED. Section 10. Seller's Covenants. (a) Updating of Information. Seller acknowledges that Purchaser will rely upon the Due Diligence Material delivered by Seller and other materials delivered by Seller to Purchaser hereunder to satisfy itself with respect to the condition and operation of the Property, and Seller agrees that, if Seller discovers that the information contained in any of the materials delivered to Purchaser hereunder is inaccurate or misleading in any respect, then Seller shall promptly notify Purchaser of such changes and supplement such materials. Otherwise, Seller provides no warranty as to the accuracy or completeness of the Due Diligence Material. (b) Prohibited Activities. During the term of this Contract, Seller shall not, without the prior written consent of Purchaser, which consent Purchaser shall have no obligation to grant and which consent, if granted, may be conditioned in such manner as Purchaser shall deem appropriate in the sole discretion of Purchaser: (i) grant any licenses, easements or other uses affecting any portions of the Property; (ii) permit any mechanic's or materialman's lien to attach to any portion of the Property; (iii) place or permit to be placed on, or remove or permit to be removed from, the Property any trees, buildings, structures or other improvements of any kind; or (iv) excavate or permit the excavation of the Property or any portion thereof. (c) Cooperation in Permitting Activities. During the term of this Contract, Seller will cooperate with Purchaser in such manner and at such times as Purchaser may reasonably request in obtaining subdivision, zoning or rezoning, site plan development, building permit and other approvals required for Purchaser's proposed use, including without limitation, signing such applications for such approvals and other instruments as may be required Contract of Sale and Purchase Page - 7 - of 31 2221 Western Avenue or authorizing Purchaser to sign such applications or instruments as Seller's agent or both. Purchaser shall bear the costs and expenses of obtaining all such approvals, including reasonable attorneys' fees that Seller may incur in connection with reviewing such applications and instruments, and Seller shall bear no cost or incur any liability in connection with such cooperation. Section 11. Broker. Seller and Purchaser each represents to the other that it has had no dealings, negotiations, or consultations with any broker, representative, employee, agent or other intermediary in connection with the sale of the Property, other than REFLECT Real Estate ("Seller's Broker"). Seller shall pay a commission to Seller's Broker pursuant to a separate written agreement between Seller and Seller's Broker. Section 12. Closing Documents. No later three (3) business days prior to the Closing, Seller shall deliver to Purchaser copies of the closing documents described in Section 8(a)(i) for Purchaser's review. Section 13. Notices. (a) Any notice under this Contract shall be in writing and shall be deemed to have been served if (i) delivered in person to the address set forth below for the party to whom the notice is given, (ii) delivered in person at the Closing (if that party is present at the Closing), (iii) placed in the United States mail, return receipt requested, addressed to such party at the address specified below, or (iv) deposited into the custody of Federal Express Corporation to be sent by Fed Ex Overnight Delivery or other reputable overnight carrier for next day delivery, addressed to the party at the address specified below. (b) The address of Purchaser under this Contract is: Billy Jack McGee, Jr. 2225 Western Avenue Fort Worth, TX 76107 (c) The address of Seller under this Contract is: City of Fort Worth Property Management Department 100 Fort Worth Trail, IOth Floor Fort Worth, Texas 76102 Attn: Andrea McIntosh Telephone: 817-3 92-625 3 With a copy to: City Attorney's Office 100 Fort Worth Trail Fort Worth, Texas 76102 Telephone 817-392-7600 (d) From time to time either party may designate another address or fax number under this Contract by giving the other party advance written notice of the change. Contract of Sale and Purchase Page - 8 - of 31 2221 Western Avenue Section 14. Termination, Default, and Remedies. (a) If Purchaser fails or refuses to consummate the purchase of the Property pursuant to this Contract at the Closing for any reason other than termination of this Contract by Purchaser pursuant to a right so to terminate expressly set forth in this Contract or Seller's failure to perform Seller's obligations under this Contract, then Seller, as Seller's sole and exclusive remedy (except as provided below), shall have the right to terminate this Contract by giving written notice thereof to Purchaser prior to or at the Closing, and receive the Earnest Money as full liquidated damages (and not as a penalty) for Purchaser's failure to consummate the purchase, whereupon neither party hereto shall have any further rights or obligations hereunder (b) If (1) Seller fails or refuses to timely consummate the sale of the Property pursuant to this Contract at Closing, (2) at the Closing any of Seller's representations, warranties or covenants contained herein is not true or has been breached or modified, or (3) Seller fails to perform any of Seller' s other obligations hereunder either prior to or at the Closing for any reason other than the termination of this Contract by Seller pursuant to a right so to terminate expressly set forth in this Contract or Purchaser' s failure to perform Purchaser's obligations under this Contract, then Purchaser shall have the right to: (i) terminate this Contract by giving written notice thereof to Seller prior to or at the Closing and receive a refund of the Earnest Money, and neither party hereto shall have any further rights or obligations hereunder, except the Surviving Obligations; (ii) waive, prior to or at the Closing, the applicable objection or condition and proceed to close the transaction contemplated hereby in accordance with the remaining terms hereof; or (iii) enforce specific performance of Seller's obligations under this Agreement. Section 15. Survival of Obligations. To the extent necessary to carry out the terms and provisions hereof, the terms, conditions, warranties, representations, obligations and rights set forth herein shall not be deemed terminated at the time of the Closing, nor shall they merge into the various documents executed and delivered at the time of the Closing. All representations and warranties by Seller in this Agreement shall survive Closing for a period of two (2) months after Closing (the "Survival Period"). Unless Purchaser discovers the breach of any such representation or warranty on a date (the "Discovery Date") prior to the end of the Survival Period and gives Seller written notice (the "Breach Notice") of the breach within thirty (30) days after the Discovery Date, no alleged breach of any such representation or warranty may form the basis of an action by Purchaser against Seller for breach of any such representation or warranty. Any such action must be brought within one (1) month after the Discovery Date, provided that a Breach Notice has been timely given in accordance with the immediately preceding sentence. Section 16. Entire Contract. This Contract (including the attached Exhibits) contains the entire contract between Seller and Purchaser, and no oral statements or prior written matter not specifically incorporated herein is of any force and effect. No modifications are binding on either party unless set forth in a document executed by that party. Section 17. Assigns. This Contract inures to the benefit of and is binding on the parties and their respective legal representatives, successors, and assigns. Neither party may assign its interest under this Contract without the prior written consent of the other party. Contract of Sale and Purchase Page - 9 - of 31 2221 Western Avenue Section 18. Taking Prior to Closing. If, prior to Closing, the Property or any portion thereof becomes subject to a taking by virtue of eminent domain, Purchaser may, in Purchaser's sole discretion, either (i) terminate this Contract and neither party shall have any further rights or obligations hereunder, or (ii) proceed with the Closing of the transaction with an adjustment in the Purchase Price to reflect the net square footage of the Property after the taking. Section 19. Governing Law. This Contract shall be governed by and construed in accordance with the laws of the State of Texas. Section 20. Performance of Contract. The obligations under the terms of the Contract are performable in Tarrant County, Texas, and any and all payments under the termsof the Contract are to be made in Tarrant County, Texas. Section 21. Venue. Venue of any action brought under this Contract shall be in Tarrant County, Texas if venue is legally proper in that County. Section 22. Severability, Execution. If any provision of this Contract is held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect any other provision, and this Contract will be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. A signature sent on this Contract by facsimile or PDF/e- mail shall constitute an original signature for all purposes. Section 23. Business Days/Effective Date. If the Closing or the day for performance of any act required under this Contract falls on a Saturday, Sunday, or legal holiday, then the Closing or the day f or such performance, as the case may be, shall be the next following regular business day. Section 24. Counteruarts. This Contract may be executed in multiple counterparts, each of which will be deemed an original, but which together will constitute one instrument. Section 25. Terminologv. The captions beside the section numbers of this Contract are for reference only and do not modify or affect this Contract in any manner. Wherever required by the context, any gender includes any other gender, the singular includes the plural, and the plural includes the singular. Section 26. Construction. The parties acknowledge that each party and its counsel have reviewed and revised this Contract and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party is not to be employed in the interpretation of this Contract or any amendments or exhibits to it. Section 27. Attornev's Fees. If any action at law or in equity is necessary to enforce or interpret the terms of this Contract, the prevailing party or parties are entitled to reasonable attorneys' fees, costs and necessary disbursements in addition to any other relief to which such party or parties may be entitled. [signature page follows] Contract of Sale and Purchase Page -10 - of 31 2221 Western Avenue This Contract is EXECUTED as of the Effective Date. SELLER: CITY OF FORT WORTH, TEXAS By: op^� Jesica McEachem, Assistant City Manager Date: 06/12/2025 PURCHASER: Billy Jack McGee, Jr Billy Jack McGee, Jr (Jun 10, 2025 12:23 CDT) Date: 06/10/2025 b F FORTS°a Ito �10 ATTEST: oo °� a(Ilnb�°,E�ooSapo Jannette S. Goodall City Secretary M&C: 25-0359 Date: April 22, 2025 APPROVED AS TO LEGALITY AND FORM: Le ie Punt (Jun 11, 202510:34 CDT) Leslie Hunt Senior Assistant City Attorney 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. Andrea McIntosh, Land Agent Property Management Department — Real Estate Division OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Contract of Sale and Purchase Page - 11 -of 31 2221 Western Avenue By its execution below, Title Company agrees to perform its other duties pursuant to the provisions of this Contract. TITLE COMPANY: McKnight Title Company By: Name: Title: Date: Contract of Sale and Purchase Page -12 - of 31 2221 Western Avenue Exhibit A The Land Lot 27, Block 5 of Hill -Crest Addition, an addition to the City of Fort Worth, Tarrant County, Texas as recorded in Volume 388, Page 17 of the Plat Records of Tarrant County, Texas and also known as 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 (Tarrant Appraisal District Account No. 01274597) Contract of Sale and Purchase Page -13 - of 31 2221 Western Avenue Exhibit B Form of Special Warrantv Deed SPECIAL WARRANTY DEED STATE OF TEXAS § KNOW ALL PERSONS BY THESE PRESENTS: COUNTY OF TARRANT § THAT, subject to the conditions and limitations set forth below (the "Conditions"), the CITY OF FORT WORTH, a home -rule municipal corporation of the State of Texas ("Grantor"), whose address for the purposes hereof is 100 Fort Worth Trail, Fort Worth, Texas 76102, Attn: City Manager, for and in consideration of the furtherance of Grantor's public purposes and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, has GRANTED, BARGAINED, SOLD and CONVEYED and by these presents does GRANT, BARGAIN, SELL and CONVEY unto BILLY JACK MCGEE, JR, an individual ("Grantee"), whose address for the purposes hereof is 2225 Western Avenue, Fort Worth, Texas 76107, those certain tracts or parcels of land located in Tarrant County, Texas, and being more particularly described and depicted in Exhibit "A," attached hereto and incorporated herein by this reference for all purposes, together with all and singular the improvements, buildings, structures and fixtures located thereon or attached thereto (all of such land, improvements and property are collectively referred to herein as the "Propertv"); provided, however, that this conveyance is made and accepted subject to ad valorem taxes for the current year and all those certain easements, covenants, restrictions and other matters of record in Tarrant County, Texas, on the date hereof, to the extent the same are valid and subsisting and affect the Property (the "Permitted Exceptions"). This Deed and the conveyance hereinabove set forth is executed by Grantor and accepted by Grantee subject to a reservation of minerals by Grantor as hereinafter set forth in this paragraph. Grantor hereby reserves and excepts out of this Deed and the conveyance hereinabove set forth all of Grantor's existing interest in and to any and all oil, gas and other minerals on, in or under the Property (the "Reserved Interest"). The Reserved Interest in and to the minerals shall (a) participate, in its proportionate share, in any and all payments due under any oil, gas and mineral leases covering the Property, including, without limitation, payments of bonus, royalty, delay rentals and shut-in royalties, and (b) be subject to the terms, provisions and conditions of any presently existing oil, gas and mineral leases now or hereafter covering the Property or any portion thereof. Notwithstanding participation of the Reserved Interest in any payments due under any oil, gas and mineral lease, Grantor waives all right of ingress and egress upon the surface of the Property and further waives all right which Grantor may now or hereafter have to use the surface of the Property in connection with any operations for the exploration or production of oil, gas or other minerals. Nothing herein contained shall ever be construed to prevent the Grantor, or Grantor's successors, or assigns, from developing or producing the oil, gas and other minerals in and under the Property by pooling or by directional drilling under the Property from well sites located on tracts outside the Property, provided that any such pooling or directional drilling under the Property does not conflict with the Conditions contained herein. Grantee acknowledges that Grantee has independently and personally inspected the Property. The Property is hereby conveyed to and accepted by Grantee in its present condition, "AS IS," WITH ALL FAULTS, AND WITHOUT ANY WARRANTY WHATSOEVER, EXPRESS OR IMPLIED. Notwithstanding anything contained herein to the contrary, it is understood and agreed that Grantor and Grantor's agents or employees have never made and are not now making, and they specifically disclaim, any warranties, representations or guaranties of any kind or character, express or implied, oral or written, Contract of Sale and Purchase Page -14 - of 31 2221 Western Avenue with respect to the Property, including, but not limited to, warranties, representations or guaranties as to (a) matters of title (other than Grantor's warranty of title set forth herein), (b) environmental matters relating to the Property or any portion thereof, including, without limitation, the presence of hazardous materials in, on, under or in the vicinity of the Property, (c) geological conditions, including, without limitation, subsidence, subsurface conditions, water table, underground water reservoirs, limitations regarding the withdrawal of water, and geologic faults and the resulting damage of past and/or future faulting, (d) the extent to which the Property or any portion thereof is affected by any stream (surface or underground), body of water, wetlands, flood prone area, flood plain, floodway or special flood hazard, (e) drainage, (f) soil conditions, including the existence of instability, past soil repairs, soil additions or conditions of soil fill, or susceptibility to landslides, or the sufficiency of any undershoring, (g) the presence of endangered species or any environmentally sensitive or protected areas, (h) zoning or building entitlements to which the Property or any portion thereof may be subject, (i) the availability of any utilities to the Property or any portion thereof including, without limitation, water, sewage, gas and electric, 0) usages of adjoining property, (k) access to the Property or any portion thereof, (1) the value, compliance with the plans and specifications, size, location, age, use, design, quality, description, suitability, structural integrity, operation, title to, or physical or financial condition of the Property or any portion thereof, or any income, expenses, charges, liens, encumbrances, rights or claims on or affecting or pertaining to the Property or any part thereof, (m) the condition or use of the Property or compliance of the Property with any or all federal, state or local ordinances, rules, regulations or laws, building, fire or zoning ordinances, codes or other similar laws, (n) the existence or non-existence of underground storage tanks, surface impoundments, or landfills, (o) any other matter affecting the stability and integrity of the Property, (p) the potential for further development of the Property, (q) the merchantability of the Property or fitness of the Property for any particular purpose, (r) the truth, accuracy or completeness of any diligence items provided by Grantor, (s) tax consequences, or (t) any other matter or thing with respect to the Property. GRANTOR MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND TO GRANTEE, INCLUDING, WITHOUT LIMITATION, THE PHYSICAL CONDITION OF THE PROPERTY, OR THEIR SUITABILITY FOR ANY PARTICULAR PURPOSE OR OF MERCHANTABILITY, AND GRANTEE IS RELYING ON ITS INVESTIGATIONS OF THE PROPERTY IN DETERMINING WHETHER TO ACQUIRE IT. THE PROVISIONS OF THIS PARAGRAPH ARE A MATERIAL PART OF THE CONSIDERATION FOR GRANTOR EXECUTING THIS SPECIAL WARRANTY DEED AND SHALL SURVIVE CLOSING. TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging unto Grantee, its successors and assigns forever, subject to the Conditions (as hereafter defined); and Grantor does hereby bind itself, its successors and assigns to WARRANT AND FOREVER DEFEND all and singular the title to the Property unto Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the Property or any part thereof, by, through or under Grantor, but not otherwise; subject, however, to the Permitted Exceptions, and the Conditions. This conveyance is made subject, however, to the following additional conditions and limitations (collectively, the "Conditions"): (i) Grantee shall commence, or cause to be commenced: (a) the new construction of a single family residential structure or elevation of the existing residential structure on each lot included within the Property; or (b) the demolition of the existing residential structure and the establishment of open, greenspace on each lot included within the Property (the "Project") in accordance with that certain set of plans and specifications entitled Arlington Heights Design Standards and Guidelines for Redevelopment prepared by the City of Fort Worth's Stormwater Management Division (the "Design Standards and Guidelines"), Contract of Sale and Purchase Page -15 - of 31 2221 Western Avenue attached hereto as Exhibit "C," or, in accordance with any changes to the Design Standards and Guidelines that may be approved in writing by Grantor. Grantee shall commence the Project upon purchase of the property, and shall diligently and continuously pursue completion, or cause the completion, of the Project so that the single-family residential structures can be habitable as soon as practicable thereafter but in no event later than forty- eight (48) months from the date that this Special Warranty Deed is recorded in the Official Real Property Records of Tarrant County, Texas; or, alternatively, Grantee shall commence, or cause to be commenced, the demolition of the existing residential structure and the establishment of open, greenspace no later than twenty-four (24) months from the date that this Special Warranty Deed is recorded in the Official Real Property Records of Tarrant County, Texas; and (ii) Grantee shall ensure that the Project is completed in accordance with all applicable federal, state, and local laws, statutes, ordinances, codes, and regulations, including the City of Fort Worth's Historic Preservation Ordinance; and (iii) Grantee shall obtain, at no cost to Grantor, all permits, approvals, map revisions, and other authorizations from all applicable governmental authorities and agencies as may be necessary or appropriate for the completion of the Project; and (iv) Until the completion of the Project, Grantor shall have the right to enter upon the Property, at reasonable times and with reasonable notice, for the purpose of inspecting the Property to ensure compliance with the Conditions; and (v) Until the completion of the Project, Grantee shall, no less than once every six months, submit a report to Grantor documenting the progress of the Project and Grantee's adherence to the Conditions; and (vi) Grantee shall ensure that any subsequent conveyance or lease of the Property from Grantee references and incorporates the Conditions contained herein and includes a notice, in accordance with the form attached hereto as Exhibit "D," that the Property is located in an area that, even though not located in a FEMA identified floodplain, has been subject to recurring flooding in the past, should be considered flood -prone, and remains at risk of severe flooding that may cause damage to structures, vehicles, landscaping, fencing, and other improvements. (vii) Grantee shall ensure that any residential structure constructed or redeveloped on the Property is elevated at least two (2) feet above the 100-year non-FEMA base flood elevation and constructed or redeveloped in accordance with the Design Standards and Guidelines. (viii) Grantee shall maintain or replace any existing fencing on the Property in the same type, style, material, location, alignment, and overland flow hydraulic characteristics. (ix) Grantee shall not grade the Property in any manner that would create or intensity flooding on neighboring properties. Contract of Sale and Purchase Page - 16 - of 31 2221 Western Avenue (x) If (a) Grantee fails to cause completion of the Project so that the single-family residential structures can be habitable on or before the date specified in the above Conditions or such other date agreed to by Grantor and Grantee in writing; or (b) Grantee fails to demolish the existing residential structure and the establish open, greenspace on or before the date specified in the above Conditions or such other date agreed to by Grantor and Grantee in writing; or (c) following completion of the Project, the Property is not maintained in accordance with the Conditions, then any such event shall be considered an Event of Default. Grantor may give written notice to Grantee of any Event of Default, and, if such Event of Default is not cured within ninety (90) days of written notice from Grantor, Grantee agrees that Grantor shall have an option and first right of refusal to purchase the Property from Grantee for Ten Dollars ($10.00) ("Repurchase Right"). The Repurchase Right and interest is expressly reserved by Grantor from the conveyance set forth herein. Grantor shall have the right to exercise its Repurchase Right by delivering written notice to Grantee at any time following the expiration of the 90-day cure period described in this paragraph and, within sixty (60) days of such written notice, Grantee will convey the Property to Grantor for Ten Dollars ($10.00). Grantee assumes, and agrees that Grantor shall have no liability or obligation to pay, taxes for the remainder of the year after the Effective Date of this conveyance to Grantee and subsequent years in respect of the Property, unless and until Grantor exercises the Repurchase Right to purchase the Property from Grantee and the repurchase deed is delivered by Grantee to Grantor. The Repurchase Right and all other rights retained or reserved by Grantor in this Special Warranty Deed shall be the property of and shall inure to the benefit of Grantor, its successors and assigns, and are not appurtenant to any tract of real property owned by Grantor. This document may be executed in multiple counterparts, each of which will be deemed an original, but which together will constitute one instrument. When the context requires, singular nouns and pronouns include the plural. EXECUTED to be effective as of this day of , 2025 [SIGNATURE PAGE FOLLOWS] Contract of Sale and Purchase Page -17 - of 31 2221 Western Avenue GRANTOR: THE CITY OF FORT WORTH By: Name: Jesica McEachern Title: Assistant City Manager Attest: Jannette S. Goodall City Secretary M&C: 25-0359 Date: April 22, 2025 APPROVED AS TO LEGALITY AND FORM (Acknowledgment) THE STATE OF TEXAS § COUNTY OF TARRANT § This instrument was acknowledged before me on this the date of , 2025 by Jesica McEachern, Assistant City Manager of the City of Fort Worth, a Texas home -rule municipal corporation on behalf of said City of Fort Worth. Notary Public, State of Texas Printed Name: My Commission Expires: Contract of Sale and Purchase Page -18 - of 31 2221 Western Avenue GRANTEE: BILLY JACK MCGEE, JR (Acknowledgment) THE STATE OF TEXAS § COUNTY OF TARRANT § This instrument was ACKNOWLEDGED before me on , 2025 by Billy Jack McGee, Jr., on behalf of said individual. Notary Public, State of Texas Printed Name: My Commission Expires: AFTER RECORDING RETURN TO: CITY OF FORT WORTH c/o Property Management Dept. 100 Fort Worth Trail, 10t' Floor Fort Worth, Texas 76102 Contract of Sale and Purchase Page - 19 - of 31 2221 Western Avenue EXHIBIT "A" TO SPECIAL WARRANTY DEED THE PROPERTY Lot 27, Block 5 of Hill -Crest Addition, an addition to the City of Fort Worth, Tarrant County, Texas as recorded in Volume 388, Page 17 of the Plat Records of Tarrant County, Texas and also known as 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 (Tarrant Appraisal District Account No. 01274597) Contract of Sale and Purchase Page - 20 - of 31 2221 Western Avenue EXHIBIT "B" TO SPECIAL WARRANTY DEED DESIGN STANDARDS AND GUIDELINES Arlington Heights Design Standards and Guidelines for Redevelopment The City of Fort Worth is ready to guide the buyers on permitting, review, and approval of their redevelopment plans. This document provides the path for successful redevelopment and outlines the redevelopment requirements that will be required after the properties are purchased. Development of the properties must comply with all applicable federal, state, and local laws, statutes, ordinances, codes, and regulations and all applicable City development, criteria, review, and permitting procedures. Given the uniqueness of the proposed development, some important aspects of the development review process are listed below: • A pre -development meeting with the City is required to be held before moving forward with the development to ensure both the buyer and City are all on the same page regarding permitting and review based on the conditions, standards and guidelines in the Arlington Heights Design Standards and Guidelines for Redevelopment. • A concept plan, or site plan, and lot grading plan showing existing and proposed grades must be submitted for review and approval. Lot grading plans shall be sealed by a professional engineer licensed by the State of Texas. • Upon completion of the development or redevelopment activity, an as -built survey shall be submitted by the buyer in order to show conformance with the approved plans. The as -built plan shall be sealed by a professional engineer or land surveyor licensed by the State of Texas. • Due to the flood prone nature of the area and to mitigate the risk of adverse impacts to nearby properties from the project: o Engineering evaluations must be performed to show that the development will not increase flood risk to surrounding properties and structures. Before any demolition, development, or redevelopment activity occurs, a completed City Flood Risk Area (CFRA) certificate prepared and sealed by a professional engineer licensed by the State of Texas must be provided; o Lot grading cannot significantly change from existing conditions; o Existing site conditions, grades, elevations, and overland flow characteristics shall be maintained in order to avoid aggravating flooding or drainage issues; and o Any additional impervious cover to the overall development footprint must be mitigated. All requests for permits, plans, and study review must be submitted and paid for following the current Fort Worth development review and approval process. Required documentation shall be submitted with initial building permit applications. If the proposed use of the property would not require any building permit applications, then all required documents shall be submitted as part of a floodplain development permit instead. No demolition, grading, or construction shall be performed until after the required documents are reviewed and approved. Contract of Sale and Purchase Page - 21 - of 31 2221 Western Avenue Each existing home or redeveloped home must be elevated at least two feet above the 100-year non-FEMA base flood elevation. Elevation Certificates will be required for each of the completed homes to show the lowest floor and any equipment serving the homes (such as air conditioners) are elevated at least two feet above the 100-year non-FEMA base flood elevation. The Elevation Certificate must be completed using the latest FEMA Elevation Certificate form by a registered public land surveyor or professional engineer and submitted within sixty (60) days after completion of construction. If currently discussed updates to the permitting process take effect, the buyer will pay $2,000.00 to the City through the development permitting process and the City will obtain the Elevation Certificate and provide a copy of the certificate to the buyer upon completion. If the permitting process updates have not taken effect, the buyer will obtain their own development certificate and submit to the City. To ensure existing conditions will be maintained in the future, no re -platting of the Properties will be considered. Past engineering studies and models of the area are available upon request by emailing: SDSaTortWorthTexas. Gov FENCING Existing side and rear yard fencing must remain in place or be reconstructed in the same location, alignment, type, style, material, and hydraulic characteristics. Fencing may be relocated to more accurately reflect the existing property boundaries. DESIGN PRINCIPLES OF NEW CONSTRUCTION The properties should be redeveloped in accordance with the prevailing architectural style and residential nature of the surrounding historic community. The following design principles will be followed: Zoning - maintain current zoning of A5/Single Family. No taller than two stories or a maximum of thirty- five (35) feet. No duplexes, urban residential or apartments. o Note: If the buyer chooses to elevate the existing duplex structure at 2201/2203 Western Avenue, that home may remain as a duplex. If the duplex is demolished and rebuilt, it will be required to be a single-family home. Setbacks - no zero -lot line development. As much as possible, observe existing front, rear and side yard building setbacks. The City may consider flexibility on front yard setbacks for porches and steps. o Align porch and front facing walls of structure with adjacent historic structures or use the average setback of structures on the block. Scale - follow established scale of existing historic homes along the block face (for example, no McMansions). o The overall scale of new construction must be consistent with that of adjacent structures. In residential areas, the height and scale of new construction should generally not exceed that of adjacent structures by more than one story with no home being taller than two stories. Facades - Brick, wood or fiber/cement board only, to be consistent with character of the traditional neighborhood. Garages/driveways - locate garages or carports at rear of lots to reflect traditional placement of accessory structures within the neighborhood; no front facing garages or garage doors. No carports or large parking aprons in front of home. Contract of Sale and Purchase Page - 22 - of 31 2221 Western Avenue Windows - maintain traditional fenestration window patterns and details; avoid the two-dimensional appearance of low-cost windows. Materials for new windows may be wood, vinyl clad, or pre -finished aluminum in appropriate colors. Roofs - maintain established roofline patterns, forms, and materials. o Roof pitch, form, and orientations shall be consistent with those predominantly found on the block. o No metal roofs RECORDING OF HISTORIC STRUCTURES For historic mitigation purposes, the City is required to record the condition of the seven historically significant houses (all properties except 2205 Western Avenue) before any work is undertaken by the owner. The City's Historic Preservation Officer (HPO) will review each buyer's development plans to determine which houses will need to be recorded prior to work being undertaken, considering the buyer's plans. The HPO will coordinate with the property owner to determine whether structures will need to be recorded prior to work being undertaken. If recording is required by the HPO, the property owner must allow the City's Historic Preservation Officer at least two (2) days to access the properties and take photographs of the exteriors of the structures. The property owner must coordinate with the HPO to determine whether additional historic documentation is required due to changes in the elevation or demolition of the structures. If the property owner proposes to elevate a structure in compliance with Secretary of Interior (SOI) Standards for the Treatment of Historic Properties, the property owner must submit to the HPO accurate drawings to scale, depicting both the property as it currently exists and the property after the proposed alteration. If a house is to be demolished, or elevated without following SOI standards, this documentation will not be required. Elevation to SOI standards is not a requirement for the redevelopment. For structures proposed to be elevated to SOI Standards, the property owner must, after the completion of construction, allow the HPO at least two (2) days to access the property to verify that the work met the approved scope for the City's historic mitigation documentation purposes. EXISTING STORM DRAIN SYSTEM An existing storm drain pipe cuts between and across several of the properties (please see map below). The City will reserve a 30-foot-wide drainage easement over the existing drainage pipe via the conveying deed. Encroachments into the drainage easement will be allowed for existing structures within the easement with the exception of the garages in the back of 2216 Carleton and 2220 Carleton. These garages must be demolished within one (1) year of closing. All encroachments within the easement will require an Encroachment Agreement in accordance with City ordinance. RESPONSIBILITY FOR DAMAGE Any portion of the public right-of-way, City -owned property, or other privately -owned property that are in any way disturbed or damaged by the redevelopment shall promptly be restored by the property owner at their cost and expense and in a manner approved by the City to as good or better a condition as such property was in immediately prior to the disturbance or damage. The property owner shall diligently commence such restoration within thirty (30) calendar days following the date that the property owner first becomes aware of the disturbance or damage. CONDITIONS OF FUTURE SALE The successful buyers may sell the properties they purchase, however, the Conditions provided by the Contract of Sale and Purchase Page - 23 - of 31 2221 Western Avenue Arlington Heights Design Standards and Guidelines for Redevelopment and included in the deed will "run with the land" and be binding on subsequent owners. The City intends to release the Conditions upon successful redevelopment of the properties in accordance with these design standards and guidelines, except for the following requirements which will be documented and remain in the deed: • Elevation of future habitable structure finished floor elevations at least two feet above the 100-year non-FEMA base flood elevation; • Maintenance of existing (or reconstructed) fencing of the same type, style, material, location, alignment, and overland flow hydraulic characteristics; • Maintenance of existing lot grading without significant changes and without changing overland flow hydraulic characteristics; and • Provision of a flood risk notice to future buyers and renters. Before any house may be occupied, the property owner must obtain all applicable City permits, including a final inspection, and written confirmation from the City's Development Services Department that the redeveloped property is in substantial conformance with these design standards and guidelines. TIMEFRAMES FOR REDEVELOPMENT The following timeframes for redevelopment are as follows: • Each property owner will have four (4) years to either elevate the existing home and make it habitable or two (2) years to demolish and restore the property to greenspace; • If a property is restored to greenspace, there is no deadline to later redevelop the lot; • The property owners of 2216 Carleton and 2220 Carleton must demolish the back garages within one (1) year of closing. Existing Structure Finished Floor Elevations and Base Flood Elevations (BFE) Difference Minimum Between Finished Floor Minimum Elevation Required Needed Based Finished TAD Property Structure of Home Year Constructed Current First Base Flood on BFE Floor Account Address Floor Elevation Elevation Elevation & (2 feet above Current BFE) Finished Floor Elevation On pier beams 2201 / 2203 Slab additions in rear 1274643 Western Ave for laundry/mud 1932 661.47 663.60 665.60 rooms 4.13 1274635 2205 Western Ave Slab on grade 2012 662.27 663.51 665.51 3.24 1274406 2212 Carleton Ave On pier beams 1925 659.54 660.75 662.75 3.21 On pier beams 1274414 2216 Carleton Ave Slab addition 1934 658.77 660.70 662.70 sunroom 3.93 1274422 2220 Carleton Ave On pier beams 1942 658.97 660.63 662.63 3.66 1274597 2221 Western Ave On pier beams 1923 661.57 663.47 665.47 3.9 1274430 2224 Carleton Ave On pier beams 1934 659.4 660.59 662.59 3.19 Portion of home is on pier beams and 1274449 2300 Carleton Ave portion is slab on 1927 658.07 660.55 662.55 grade 4.48 Contract of Sale and Purchase Page - 24 - of 31 2221 Western Avenue Notes: 1. The finished floor of new and elevated homes and any equipment serving the home must be at least two (2) feet above the 100-year non-FEMA base flood elevation. 2. Existing accessory buildings such as garages and sheds are not required to be retrofitted, unless significantly modified, and can remain within the base flood elevation understanding that they will be likely to flood with the exception of a. The garage/accessory dwelling unit at the back of 2300 Carleton must be elevated at least two (2) feet above the 100-year non-FEMA Base Flood Elevation or demolished (Surveyed Finished Floor Elevation data is not available for this accessory structure). b. The garages at the back of 2216 Carleton and 2220 Carleton must be demolished within one (1) year of closing. 3. Future or significantly modified accessory buildings, such as garages and sheds, must be water resistant (usually concrete and no sheetrock) up at least two (2) feet above the 100-year non-FEMA base flood elevation to prevent damage to the walls when flooded. 4. All electrical and mechanical equipment must be at least two (2) feet above the 100-year non- FEMA base flood elevation. 5. Flood vents are required in walls and/or garage doors to allow for the flow of floodwater. 6. The attached garage at 2205 Western does not have to be elevated but the garage has to be retrofitted to be water resistant (usually concrete and no sheetrock) at least two (2) ft above the 100-year non- FEMA base flood elevation to prevent damage to the walls when flooded. Also, all electrical and mechanical equipment must be at least two (2) feet above the 100-year non-FEMA base flood elevation. In addition, flood vents are required in the walls and/or garage doors to allow for the flow of floodwater. Additional Information PROPERTY CONDITION Photos and information regarding each individual property and house can be found in previous appraisals. Contact the broker for copies of these documents. Additionally, as a result of water supply line leaks within the houses of 2212 Carleton and 2221 Western, mold was found to be present upon a routine inspection of the houses. As a means of addressing the mold issue, an assessment report was conducted by Industrial Hygiene and Safety Technology, Inc. (IHST) on November 30, 2022 to better understand the extent of mold and the steps necessary for remediation. Based on the assessment and findings from IHST's inspection and assessment it was determined that the 2221 Western location was due to a leaky water supply line and only impacted a small surface area. IHST's recommendation was for the water to be turned off; and, because the house was not occupied, they deemed the minor mold contamination posed no severe threat. However, if the house were to be occupied, the mold contamination would be required to be remediated in accordance with standard mold remediation protocol. The report is available upon request. As for 2212 Carleton, the mold contamination was determined to affect a larger area. However, because the house was not occupied, IHST's recommendation was the same. That is, the recommendation was to turn off the water as a temporary measure; however, if the house were to be occupied, then the mold contamination would be required to be remediated in accordance with standard mold remediation protocol. The report is available upon request. Contract of Sale and Purchase Page - 25 - of 31 2221 Western Avenue FLOOD INSURANCE Both government -backed (National Flood insurance Program (NFIP)) and private flood insurance are available for these structures. The properties are NOT located within a FEMA mapped 100-year floodplain, however non-FEMA flood risk, called City Flood Risk Area, has been identified and mapped by the City on these properties. The City is requiring Elevation Certificates for each of these homes, once elevated, showing the homes and any equipment serving the homes (such as air conditioners) are elevated at least two (2) feet above the non- FEMA 100-year base flood elevation. Elevation Certificates can be used by the property owner and future property owners to help justify lower flood insurance premiums. Once elevated at least two (2) feet above the 100-year base flood elevation, flood insurance is expected to be cheaper for the structures; however, it is recommended that the property owners speak with insurance agents prior to purchase to understand potential flood insurance premiums. HISTORIC EXEMPTION There is a possibility that elevation of the existing structures could qualify for local historic designation (with the exception of the newer home at 2205 Western) and the ability to have City ad valorem property taxes frozen for ten (10) years. For more information about this possibility, please contact the City's Historic Preservation Officer, Lorelei Willett, at Lorelei.Willett@FortWorthTexas.Gov or 817-392-8015. Contract of Sale and Purchase Page - 26 - of 31 2221 Western Avenue Proiect Area Map Subject Property, 100-Year Non-FEMA Flood Risk Area Inundation Mapping, and Existing Storm Drain Alignment The property is NOT located in a FEMA Floodplain; however, it is located in a City identified and mapped, Non-FEMA Flood Risk Area called a City Flood Risk Area (CFRA). Estimated Flood Depths for a 100-Year Event A 100 year even[ has a 26% chance of occurring over a 30 year mortgage Greenspace Contract of Sale and Purchase Page - 27 - of 31 2221 Western Avenue DrainaEe Pipe and DrainaEe Easement Map Contract of Sale and Purchase Page - 28 - of 31 2221 Western Avenue For reference, see example photos of good new construction that fits the neighborhood's historic character Contract of Sale and Purchase Page - 29 - of 31 2221 Western Avenue Contract of Sale and Purchase Page - 30 - of 31 2221 Western Avenue EXHIBIT "C" TO SPECIAL WARRANTY DEED FLOOD RISK NOTICE The property located at 2221 Western Avenue, although not located in a FEMA identified floodplain, has been subject to recurring flooding in the past. The property should be considered flood -prone and remains at risk of severe flooding that may cause damage to structures, vehicles, landscaping, fencing, and other improvements. The following photograph shows the June 27, 2016 flooding which impacted the Western & Carleton area of Arlington Heights. This specific photo shows flooding at 2209/2211 Western and 2213 Western. The frequency of the storm was estimated to have a 4% chance of happening in a given year and is also known as a 25-year event. Examples of the flooding in the area are readily available on YouTube and other online sources. Flooding information can also be requested from the City of Fort Worth. Contract of Sale and Purchase Page - 31 - of 31 2221 Western Avenue M&C Review Page 1 of 2 A CITY COUNCIL AGEND Create New From This M&C DATE: 4/22/2025 REFERENCE NO.: **M&C 25- 0359 CODE: L TYPE: CONSENT Official site of the City of Fort Worth, Texas FORT WORTH '*41v LOG NAME: 21 CFO SALE OF 2221 WESTERN AVE PUBLIC NO HEARING: SUBJECT: (CD 7) Authorize the Direct Sale of City Fee -Owned Property Located at 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 to Billy Jack McGee, Jr. in the Amount of $254,000.00 in Accordance with Section 253.014 of the Texas Local Government Code RECOMMENDATION: It is recommended that the City Council: Authorize the direct sale of City fee -owned property located at 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 to Billy Jack McGee, Jr. in the Amount of $254,000.00 in accordance with Section 253.014 of the Texas Local Government Code; and Authorize the City Manager or his designee to execute the purchase and sale agreement and record the appropriate instruments conveying the property to complete the sale. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize the conveyance of approximately 0.1893 acres of land, including any structures, situated in the Hillcrest Addition, Block 5, Lot 27, and located at 2221 Western Avenue, Fort Worth, Tarrant County, Texas 76107 (Tarrant Appraisal District Account No. 01274597) (the Property) to Billy Jack McGee, Jr. (the Buyer). The Property was acquired by the City in 2020 through M&C No. 20-0415 in connection with the Central Arlington Heights Voluntary Acquisition Project (City Project No. 101262), which was initiated to mitigate flood risk to the neighborhood and relieve residents in the most flood -prone homes from ongoing exposure to flood damages. The Property is now recommended for sale after considering feedback received from the community during engagement meetings. Section 253.014 of the Texas Local Government Code allows a municipality to sell City -owned property by contracting with a broker, provided that the property is listed with a multiple -listing service for at least thirty (30) days and that the property is sold to the buyer who submits the highest cash offer. The City contracted with REFLECT Real Estate, a licensed broker, on November 7, 2024. On November 30, 2024, the Property was listed with a multiple -listing service for $100,000.00 with bidding open for ninety (90) days. The City also published notice of its intention to sell the Property in the Fort Worth Star -Telegram and for at least four weeks on the City's Property Management Real Property Sales webpage. The Property is being sold subject to redevelopment following specific design standards and guidelines for redevelopment, which are attached to this M&C for reference. These guidelines require the existing home to be elevated at least two (2) feet above the 100-year non-FEMA base flood elevation or if the existing home is demolished, any new home built has to be built at least two (2) feet above the 100- year non-FEMA base flood elevation. The guidelines also outline requirements associated with maintaining existing grading and fencing, providing flood risk notice to future buyers and renters, and architectural style specifications. Additionally, the guidelines establish timeframes for the redevelopment activity to happen and give the City the ability to buy the Property back, if guidelines are not met. If necessary, the City may reserve a drainage easement for existing or future stormwater infrastructure. http://apps.cfwnet.org/council_packet/mc review.asp?ID=33222&councildate=4/22/2025 6/9/2025 M&C Review Page 2 of 2 The City reviewed multiple offers and recommends accepting the Buyer's offer of $254,000.00, which was the highest cash offer. The Buyer will also be responsible for all closing costs. Upon closing, the proceeds from the sale of the Property will be allocated for future Stormwater Capital Projects. The property is located in COUNCIL DISTRICT 7. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations and sale of the property, funds will be deposited into the Stormwater Capital Projects Fund. The Property Management Department (and Financial Management Services) is responsible for the collection and deposit of funds due to the City. TO Fund Department Account Project Program Activity Budget Reference # Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference # I Amount ID ID I Year (Chartfield 2) Submitted for Citv Manager's Office bv: Valerie Washington (6199) Originating Department Head: Marilyn Marvin (7708) Lauren Prieur (6035) Additional Information Contact: Jennifer Dyke (2714) ATTACHMENTS CAH Redevelopment Guidelines.pdf (Public) FID Table 222lWesternAve.2025.xlsx (CFW Internal) M&C Map 2221 WesternAve.pdf (Public) http://apps.cfwnet.org/council_packet/mc review.asp?ID=33222&councildate=4/22/2025 6/9/2025