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HomeMy WebLinkAboutContract 29113 CITY SECRETARY / CONTRACT NO. I St. Clair Newbern, III State Bar No. 1494100 U.S. BANKRUPTCY COURT LAW OFFICES OFNORTHERN DISTRICT OF TEXAS ST. CLAIR NEWBERN, 111, P.C. ENTERED 1701 River Run Road, Suite 1000 Fort Worth, Texas 76107 TAWANA C. MARSHALL, CLERK Telephone: (817) 870-2647 THE DATE OF ENTRY IS Facsimile: (817) 335-8658 ON THE COURT'S DOCKET ATTORNEYS FOR DEBTORS 5293.10(eykcs IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF TEXAS FORT WORTH DIVISION IN RE: ) IN PROCEEDINGS UNDER SCOTT RUSSELL DAVIDSON } d/b/a SCOTT DAVIDSON INTEREST ) d/b/a ANTIQUE EXCHANGE ) CHAPTER 11 MARTHA ANN DAVIDSON ) SSN 099-16-9709 ) JOINTLY ADMINISTERED UNDER DEBTORS ) CASE NO. 498-42080-BJH-11 ORDER APPROVING MOTION TO COMPROMISE AND SETTLE CLAIMS OF CITY OF FORT WORTH On this day came on for consideration the Debtors'Motion to Compromise and Settle Claims of City of Fort Worth(the"Motion"), and the Court,having been advised that no Objections to the relief sought in the Motion have been filed, and having reviewed the Motion, and being of the ORDER APPROVING MOTION TO COMPROMISE&SETTLE CLAIMS OF CITY OF FORT WORTH-Page 1 KAChapter 11\Davidson,Scott\General Admin\order.mtncomp&settle.cityoffw.wpd yq ;. Sk opinion that the Motion should be granted, good cause having been shown for approval of the Agreement reached between the Debtors and the City of Fort Worth,therefore IT IS ORDERED that the Motion to Compromise and Settle Claims of City of Fort Worth is approved and the Debtors be and they are hereby authorized to consummate the Settlement reached with the City of Fort Worth, as set forth in the Agreement attached hereto as Exhibit"A". SIGNED BARBARA J. HOUSER, UNITED STATES BANKRUPTCY JUDGE ORDER APPROVING MOTION TO COMPROMISE&SETTLE CLAIMS OF CITY OF FORT WORTH-Page 2 K:\Chapter i Mavidson,Scott\General Admin\order.mtncomp&settle.cityoffw.wpd AGREEMENT BETWEEN THE CITY OF FORT WORTH, TEXAS AND SCOTT AND MARTHA DAVIDSON Whereas, Scott Davidson and Martha Davidson are Debtors in a Chapter 11 proceeding pending in the U.S. Bankruptcy Court for the Northern District of Texas, Jointly Administered in Case No. 498-42080-BJH-11, and Whereas, the City of Fort Worth (the "City") prior to and during the commencement of the Chapter 11 proceedings asserted claims against the Davidson for, among others,taxes, fines, penalties, and citations, and Whereas, the Davidsons have asserted claims against the City of Fort Worth for wrongful destruction of the Davidson's property and for over valuation of the properties owned by the Davidsons, and Whereas, the Davidsons have represented to the City that all taxes due and owing to the City for 2002 have been paid; and Whereas, the City of Fort Worth and the Davidsons desire to settle all such claims that each has against the other as of the approval of this Agreement by the City of Fort Worth, and the United States Bankruptcy Court,which ever occurs last, Therefore, the parties agree as follows: 1. The Davidson agree to pay to the City of Fort Worth an amount of$200,000.00 as full and final settlement for the total amount of taxes due and owing to the City of Fort Worth as of December 31, 2001 in connection with the properties located in the corporate city limits and taxing jurisdiction of the City of Fort Worth, which properties are more fully described on the attached Exhibit "1". To the extent that the Davidsons own other properties not listed or disclosed on Exhibit"1",the City retains the right to collect any delinquent ad valorem taxes on such undisclosed properties by any and all means and methods available to the City by law. 2. The Davidson agree to pay an initial lump sum payment towards the amount in Paragraph 1 above in the amount of$ 150,000.00 within 30 days of the approval of this Agreement by the City of Fort Worth, and the United States Bankruptcy Court, which ever occurs last. Upon approval of this Agreement by the City of Fort Worth, counsel for Davidsons shall, within ten (10) days of such approval file a motion to approve Agreement with the bankruptcy court and shall set the motion for hearing at the earliest practicable date. EX IT Q 3. Scott and Martha Davidson agree to pay the remaining amount of$50,000.00 within twelve months from the signing of this Agreement. No interest will be due on said $50,000.00 should this remainder be paid within four months of the signing of this Agreement. Otherwise any unpaid balance shall bear interest from the date of approval of this Agreement at the rate of 7%per annum. 4. Scott and Martha Davidson agree to dismiss with prejudice all lawsuits currently pending against the City of Fort Worth, including, but not limited to, the lawsuit entitled Scott Davidson v. The City of Fort Worth, Cause number 98-78992-3 that is currently pending in Tarrant Count Court at Law Number 3. Scott and Martha Davidson also agree to release any previously filed claim now pending against the City including but not limited to the demolition of a house at 911 NW 28 Street. 5. The Davidson agree to bring each of the properties that had "rehab liens" on them, which properties are more fully identified on Exhibit "2" up to minimum building standards by the times set forth in the Schedule which is attached hereto as Exhibit "3" subject to Paragraph 10 of this Agreement. Additional substandard properties are described in Exhibit 3 and shall be brought to minimum building standards as described in this Agreement and as set forth in Exhibit 3. 6. The City agrees to dismiss all City of Fort Worth minimum building standard citations against Scott or Martha Davidson pending on the date of this Agreement in the Fort Worth Municipal Court. 7. The City of Fort Worth agrees to release all "rehab liens" on Scott and Martha Davidson properties in the City of Fort Worth, including, but not limited to each of the properties identified on Exhibit "2", contemporaneously with the payment of the initial $150,000.00. 8. The City of Fort Worth agrees to release all City `weed liens" and "board-up liens" on any of the properties owned by Scott Davidson and/or Martha Davidson. These liens shall be released contemporaneously with the payment of the initial $150,000.00. This shall include liens for City services up to the date of this Agreement. 9. All properties listed in Exhibit 1 except properties listed in Exhibit 4 shall be released from tax delinquent status contemporaneously with the payment of the initial $150,000.00. Payments, when made on the outstanding $50,000 as described in Paragraph 3 of this Agreement may be designated for specific properties, which will result in any liens held by the City of Fort Worth being released contemporaneously with payment. To the extent the Davidson own properties not listed or disclosed on "Exhibit 1" such undisclosed properties shall not be released from tax delinquent status and the City shall be free to collect any and all delinquent taxes by any means available at law. Furthermore, to the extent that there are properties listed or disclosed on "Exhibit 1" for which the 2002 Ad Valorem taxes have not been paid as asserted by the Davidsons, then, and in such event, those properties for which the 2002 Ad Valorem are still due and owing are not released from the tax delinquent status and the City shall be free to collect any and all delinquent taxes by any means available at law. 10. The legal department agrees to propose a policy change to the Fort Worth City Council that would allow owners of inner-city properties being rehabilitated to postpone final approval of the fixtures inside of the property until no more than 72 hours after the lease or sale of the property provided that all other interior and exterior work is completed, inspected and approved by all appropriate City of FortWorth departments. This proposal shall be calendared to be presented to the Fort Worth City Council within six months after approval of this Agreement by the Bankruptcy Court. During said six-month period, the City of Fort Worth will treat properties listed in Exhibit 5 owned by Scott Davidson or Martha Davidson as if the policy described above had already been implemented. If the policy as described above is rejected by the City then at that time all properties listed in Exhibit 5 shall be subject to the current permitting policies. 11. In the event of the default of this Agreement or in the event that any taxes not covered by this agreement are not paid, the obligations of Scott Davidson and/or Martha Davidson to the,City shall be collected through the terms of the Bankruptcy Court order as it applies to the other local taxing entities, or any other means available to the City in law or equity including and without limitation, suing on delinquent sums, obtaining a judgment for such amount, and seeking to foreclose on such judgment. 12. All releases contemplated by this Agreement, including the dismissal with prejudice and release of the "rehab" and all other liens shall be exchanged on the occasion of the delivery of the payment that is contemplated in Paragraph 3 above. 13. The parties agree to execute such other agreements as may be necessary to implement the terms of this agreement. 14. This agreement is subject to approval of the U.S. Bankruptcy Court. A-,OLA J� ~ � S tt Davidson Martha Davidson St. Clair ewbern, III topher B. Mosley State Bar No. 1494100 State Bar No. 00789505 1701 River Run Road, Suite 1000 1000 Throckmorton Street Fort Worth, Texas 76107 Fort Worth,Texas 76102 AssistC' a er City OU 0 ATTESTED BY Contract Authorization Date I .LI��� 321 Ada 325 Ada Ave 328 Ada Ave 418 Ada Ave 731 Ada 813 S Adams 809 Alandale 549 Alexander 117 Andrew 600 Anglin 1123 E Annie 03 E Arlington 1612 Amold 236 Asbury Ave 814 Ave E 37 Ave E 625 Ave G 009 Ave H 608 Ave I 010 Ave J 12 Ave K 837 Ave L 720 Ave M 11 Baltimore 312 Bandy Ave 625 Bendry 1420 E Bessie 115 Evans 308 Famsworth Ave 029 Greenview 302 Grover 044 S Hampshire 05 Hanger 1. 128 Hawlett 808 Hollis 1 S Hughes Ave 1719SHughes 516 Kilpatrick 05 Lanola Ct 305 Lea Place 1621 Lindse 817 Mari old Mcpheason Rd \ cpheason Rd f 3 Tarr. c-t s V2 r edr- R Mcpheason Rd 4104 Mobedy St 208 Mobedy St 1205 Bradley 805 Bratcher 009 Bri ht 684 Burchill Road 861 Burchill Road 325 Tarrant 326 Burton 532 Burton 113 Callender Dr 124 Carey St. 329 Carruthers Drive 779 Castleman 2. 3. 5405 Cox St 7433 Darien 7452 Darien 5412 David Strickland 5701 David Strickland 3855 Donalee 4413 Eastover 1300 Elmwood 5154 Erath 4712 Norris 5617 Norris 5300 Odell 3501 Richardson Ct. E 3537 E Rosedale 6920 Sandstone 7028 Sand brook 5133 Sears 5220 Shackleford 5220 Shackleford 5224 Shackleford 1823 6 Ave 11832 Stella 13000 Strong 2604 Stuart 3701 Stuart 6009 Sundown 1 Sunny Lane 1104 E Arlington 4240 Asbury 2704 Ash Crescent 1517 Ave E 3417 Ave G 5109 E Berry 3641 Bright 2909 Canberra Court 3700 Castleman 4. 3609 Childress 424 Christine 1113 E Davis 07 S Ed ewood Te rr. 1500 E Ed ewood Terr 725 Erath 617 Forbes 127 Goddard 129 Goddard 131 Goddard 3245 Hardeman St 704 Hardeman St 3804 Howard St 333 Jana 1404 E Jefferson 3712 Knox 1275 E Magnolia 1276 E Magnolia 725 Millet Ave 212 Moberi 2812 Sydney 405 Truman 911 NW28 1616 Washington 900 S Wesleyan 3104 S Wesleyan 812 Wilbar er 3836 Wilbarger 012 Wiseman 3233 Montague 944 E Momin side 507 Nolan 721 Nolan 08 Parkdale S 1122 E Powell 409 Reed 5. 6. 3604 Griggs 1200 E. Powell 4425 Ovid 6421 Ave. Ct. 3616 Ave. K 3754 Donalee 1237 E. Elmwood 3504 E. Rosedale 2800 Thannisch 1637 Long Ave. 7500 Mars 4425 Ovid Dr. 3005 Loving Avenue Fort Worth 3411 Crenshaw Avenue Fort Worth 3156 Ray Simon Drive Fort Worth 2809 Stuart Drive Fort Worth 5101 Cantrell Street, Fort Worth 2915 Crenshaw, Fort Worth 5550 Norris Stree Fort Worth 4220 Emerson, Fort Worth 5553 Cottey Street Fort Worth 1908 Avenue B Fort Worth 1969 Lipscomb, Fort Worth 6504 Ava Court,Fort Worth 2421 Stuart Drive Fort Worth 2729 Travis Avenue, Fort Worth 5600 Lester Granger Drive Fort Worth 2732 Avenue E Fort Worth 1340 East Richmond Avenue Fort Worth 2706 Vogt Stree Fort Worth 3520 Thannisch Avenue Fort Worth 1009 Parkdale Street Fort Worth J 2817 South Wesleyan Drive Fort Worth 2912 Crenshaw Avenue Fort Worth 4724 Willie Street Fort Worth 4136 Avenue J Fort Worth 4020 East Berry Street Fort Worth 3709 Ada Avenue Fort Worth 728 McCurdyStreet Fort Worth 4425 - 4429 Ovid Drive Fort Worth 2325 Wallace Street Fort Worth 4024 Howard Street Fort Worth 3620 Avenue N Fort Worth 3319 Avenue L Fort Worth 4337 Avenue M Fort Worth 3612 Hardeman Stree Fort Worth 1700 East Morningside Drive Fort Worth 2905 Westhill Road Fort Worth 1732 Stalcup Road,Fort Worth 2308 Vaughn Boulevar Fort Worth 3607 North Harding Street Fort Worth 3012 Honeysuckle,Fort Worth 3004 Rodeo Street Fort Worth 5021 Tulane Avenue Fort Worth 3701 Forbes Fort Worth 3317 Bright,Fort Worth 4109 Wiman, Fort Worth 3617 San Rose Fort Worth 6405 Ava CourtFort Worth 4504 Rutan Street Fort Worth 3716 Wilbar er Street,Fort Worth 6329 Griggs Street Fort Worth 5001 Pamela Drive Fort Worth 2323 Rosen Street Fort Worth 1709 Wallace Street Fort Worth 3412 East Berry Stree Fort Worth 1409 Langston Street 3701 Griggs Avenue 3340 Grayson Street 917 South Hughes Street 2100 Avenue C Fort Worth 4100 Dowdell Fort Worth 4237 Crenshaw Avenue Fort Worth 1716 Stalcup Road Fort Worth 3213 Rufus, Fort Worth 5304 North Hampshire, Fort Worth 1212 Schieffer, Fort Worth 2662 Thannischm Fort Worth 1913 Daniel Street Fort Worth 1133 East Leuda Street Fort Worth 3640 South Little'ohn Avenue Fort Worth 1509 Northeast 34 Street Fort Worth 720 McCurdyStreet Fort Worth 901 West Dickson Street Fort Worth 3241 New York Fort Worth 4421 Fitzhugh Avenue Fort Worth 600 Ravine Fort Worth 3425 Avenue L Fort Worth 1928 - 30 South Henderson,Fort Worth 3631 Avenue J Fort Worth 320YAvenue L Fort Worth 2908 Northwest 20n,Fort Worth 2724 Avenue G Fort Worth 5600 Lester Granger,Fort Worth 2908 Avenue G Fort Worth 5129 Ramey, Fort Worth 4608 Talhnan,Fort Worth 5700 Houghton,Fort Worth 7844 Ella Young,Fort Worth 1275 East Magnolia, Fort Worth 4413 Eastover Fort Worth 908- 910 Parkdale Fort Worth 5062 Reed,Fort Worth 3124 Bright,Fort Worth 3010 Avenue J Fort Worth 1832 Stella, Fort Worth 3532 Burton Fort Worth 3312 Avenue J Fort Worth 1840 Carver Fort Worth 7124 Craig,Fort Worth 1627 East Davis Fort Worth 917 East Elmwood Avenue Fort Worth 2301 Evans Fort Worth 5100 Flamingo, Fort Worth 1009 Hawthorne Fort Worth 1013 Hawthorne Fort Worth 864 East Jessamine,Fort Worth 1016-18 East Leuda, Fort Worth 4908 Littlepage, Fort Worth 4256 Ramey, Fort Worth 1335 East Richmond, Fort Worth 2421 Stark Fort Worth 13411 Strong, Fort Worth 5824 VvUttlesey,Fort Worth 3908 Wilbaz er Fort Worth 9105 Alanbrooke CourtFort Worth 9109 Alanbrooke CourtFort Worth 1121 East Arlington, Fort Worth 2605 Brinkely, Fort Worth 1909 Bolingbroke Place, Fort Worth 3832 Bryan, Fort Worth 1011-13 East Cannon Fort Worth 1015-17 East Cannon Fort Worth 3812 Coftn, Fort Worth 2024 Danner Fort Worth 937 East Davis Fort Worth 5432 Elgin, Fort Worth 1216-18 Elva Warren Fort Worth 1908 Fairmont Fort Worth 5533 Fernander,Fort Worth 1921 Grande, Fort Worth 1733 Greenfield,Fort Worth 837 East Harvey,Fort Worth 2709 South Jennings,Fort Worth 3304 Lakeland Fort Worth 1336 East Magnolia,Fort Worth 1917 West Morphy, Fort Worth 1014 East Myrtle, Fort Worth 1262 East Richmond Fort Worth 3206 Rosen Fort Worth 2708-10 StuartFort Worth 8104 Tanner Fort Worth 14.14 East Terrell Fort Worth 2815 Thannisch Fort Worth 3708 Waldorf Fort Worth EXHIBIT 2 HOUSES WITH REHAB LOANS 3321 Ada $9,000.00 4608 Avenue I $8,000.00 3009 Avenue H $8,000.00 3325 Ada $9,000.00 3418 Ada $8,000.00 1300 Elmwood $15,000.00 2812 Sydney $5,000.00 3326 Burton $5,000.00 5154 Erath $5,000.00 2625 Avenue G $5,000.00 811 East Baltimore $5,000.00 1420 East Bessie $5,000.00 3000 Strong $5,000.00 3504 East Rosedale $5,000.00 2800 Thannisch $6,500.00 3616 Avenue K $8,000.00 EXHIBIT 3 Substandard rehab lien properties must be repaired by the following dates: 1420 E. Bessie 12/31/03 4601 Avenue I 12/31/03 The following properties are also substandard and must be repaired by the following dates: 903 E. Arlington 12/31/03 2115 Evans Ave. 12/31/03 EXHIBIT 4 Address 3612 Arnold $2,669.70 3302 Grover $1,997.51 5044 S. Hampshire $1,390.09 2808 Hollis $2,180.20 901 S.Hughes $1,634.76 1719 S.Hughes $2,190.99 5516 Kilpatrick $3,037.73 405 Lanola $3,142.28 3817 Marigold $4,069.63 3420 Collin $2,771.61 7433 Darien $2,685.63 7452 Darien $2,376.06 5617 Norris $3,861.06 5300 Odell $2,956.58 3501 Richardson Ct. E $3,179.17 6920 Sandstone $2,881.91 1823 6`h Ave. $3,859.52 3701 Stuart $3,120.82 EXMTT 5 1. 3325 Ada 2. 3009 Ave H 3. 4608 Ave I 4. 1420 E. Bessie 5. 3326 Burton/3325 Tarrant 7. 811 E. Baltimore )9-24-n3 p ,3:3?- 1 �! MEMO To: Gloria Pearson City Secretary From: Christopher Mosley Date: September 24, 2003 Re: M & C Reference Number 1-13554 The enclosures are copies of the settlement agreement for the Scott Davidson bankruptcy matter and a bankruptcy court order approving the agreement. The original documents are filed with the bankruptcy court, but these copies are true and correct copies of the originals. Please file these documents with your records. Should you need any more information, please contact me at 7603. City of Fort Worth, Texas "Agar And Council Communication DATE REFERENCE NUMBERLOG NAME PAGE 5/13/03 **L-13554 12DAVIDSON 1 of 1 SUBJECT BANKRUPTCY SETTLEMENT FOR DELINQUENT TAXES RECOMMENDATION: It is recommended that the City Council authorize the City Manager's Office and the City Attorney's Office to execute agreements that will settle claims between Scott Davidson and the City. DISCUSSION: Scott and Martha Davidson have owned 213 properties in Fort Worth that are subject to their Chapter 11 bankruptcy case. The City has asserted claims against the Davidson's for the delinquency of taxes on the properties in the amount of $192,408.13 and the Davidsons have defaulted on sixteen (16) City of Fort Worth rehab loans that they obtained for some of these properties. There are weed and board- up liens on these properties and eight (8) citations are pending in Municipal Court that pertain to the properties. The Davidson's have asserted one claim and filed one lawsuit (Scott Davidson v. The City of Fort Worth, Cause number 98-78992-3) against the City for wrongfully demolishing two of their properties. In an effort to settle all disputes, a settlement is being proposed that would allow the Davidson's to pay the City $200,000 and release the claim and the lawsuit against the City in exchange for the dismissal of pending citations, the release of weed and board-up liens and rehab liens, and removal of the tax delinquency status for 213 properties. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the Engineering Department, Real Property Services Division is responsible for the collection of funds due to the City under this agreement. RZ:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) GG01 122379 0000000 $200,000.00 Richard Zavala 6183 Originating Department Head: David Yett 7623 (from) APPROVED 05/13/03 Additional Information Contact: Christopher B. Mosley 7603