HomeMy WebLinkAboutContract 30530 COUNTY OF TARRANT §
STATE OF TEXAS §
OPTION TO PURCHASE AND PURCHASE AGREEMENT
THIS OPTION to Purchase ("Option") dated ;,- /i A > 16 , 2004 is between the
City of Fort Worth, a home rule municipality, ("Sell e "), acting through Marc A. Ott its duly
authorized Assistant City Manager and �,`cJur f"IjZj;�("Purchaser").
WHEREAS Seller is the owner of property within 5000 feet of Lake Worth; and
WHEREAS Section 272.001 of the Texas Local Government Codes, Subsection (h),
provides that a municipality with a population of 575,000 or less and owning land within 5,000
feet of the shoreline of a lake may sell the land to the person leasing the land for the fair market
value of the land without the solicitation of bids; and
WHEREAS Purchaser leases property from Seller, such Property more particularly
described on Exhibit "A", attached hereto and incorporated herein by reference ("the Property");
and
WHEREAS, Purchaser desires to purchase the Property from Seller and desires to obtain
an option to purchase the Property; and
WHEREAS the City Council of the City of Fort Worth has adopted a policy in which the
property surrounding Lake Worth can only be sold when it is connected to the City of Fort Worth
water or sewer system or when it is connected to a municipal water or sewer system; and
WHEREAS, it is anticipated that it may take up to 10 years for the Property to be
connected to the City of Fort Worth water or sewer system.
NOW THEREFORE, the parties agree as follows:
Grant of Option
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 1 of 26
February 3,2004
1�249� 9
not have any recourse against Seller and Purchaser shall not be entitled to any damages
against Seller.
3.
Conditions Necessary to Exercise
A. If Purchaser receives a Sewer Connection Notice or gives Purchaser's Notice prior to
September 30, 2013 and desires to exercise Purchaser's option to purchase the Property,
Purchaser must satisfy all the following conditions:
(1) if the system available for connection is a City of Fort Worth Sewer System or Seller
sends a "Sewer Design Notice" to Purchaser, a Tap Fee and Impact Fee associated
with connecting the Property to the City of Fort Worth Sewer System must be paid in
full. The actual amount of the Tap Fee and the Impact Fee will be the amount set and
approved by the Fort Worth City Council at the time the Option is exercised;
(2) the Property must be connected to either the City of Fort Worth water system, or the
City of Fort Worth sewer system, a municipal water system or a municipal sewer
system;
(3) all taxes on the Property are current and not in a delinquent status;
(4) all payments or money due to the City of Fort Worth must be current and not in a
delinquent status, "payments" and "money due" includes, but is not limited to lease
payments, garbage fees and water and sewer fees;
(5) all the liens on the Property securing any indebtedness to Seller must be paid and
released;
(6) the Property has been platted by the City of Fort Worth since 1990 and Purchaser has
accepted the description of the Property as shown on the most recent recorded plat
filed by the City of Fort Worth; and
(7) the Property is not served by a septic tank or a drainage field off the Property.
B. In order to exercise Purchaser's Option to purchase the Property, Purchaser must satisfy or be
in compliance with the conditions set forth in Paragraph 3 A above within one year of
receiving a Sewer Connection Notice from Seller or sending a Purchaser Notice to Seller.
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 3 of 26
February 3,2004
B. Once the Property can be connected to the City of Fort Worth or municipal_sewer
system, Seller shall send Purchaser written notice ("Sewer Connection Notice")
specifying that it is the Sewer Connection Notice provided for in this agreement,
the date of such notice and that the City of Fort Worth or municipal sewer system
is available for Purchaser's connection.
C. Once the property can be or is connected to a City of Fort Worth water system, a
municipal water system or to a municipal sewer system supplied by a municipality
other than the City of Fort Worth, Purchaser may send Seller written notice
(Purchaser's Notice), specifying that it is the Purchaser's Notice provided for in
this agreement, the date of such notice, the water or sewer system that the property
is or can be connected to, and the municipality providing the water or sewer
system that is available for Purchaser's connection or to which Purchaser had
previously connected. If Purchaser's septic system incorporates a septic tank or
drainage field that is not located on the Property, Purchaser cannot send Seller a
Purchaser's Notice unless the property is connected to a City of Fort Worth or
municipal sewer system.
D. Sewer connection will be made to either a gravity city sewer (Type 1&2) or a low-
pressure city sewer (Type 3) as shown on Exhibit "D". Type 1&2 gravity
connections will be provided at the property line by the City. Purchaser will be
responsible for installation of all plumbing from the house to the tap at the
property line and abandonment of existing septic tanks in accordance with the
City plumbing code.
Type 3 sewer connections to a low-pressure system will be provided to the point
of the grinder pump installation. The City will maintain the grinder pump and all
plumbing between the grinder pump and the City main as part of the City sewer
system. The Purchaser agrees to grant the City an easement in order to maintain
the Grinder Pump system. Purchaser agrees to pay an additional fee for the
maintenance of the Grinder Pump after the 5-year factory warranty on grinder
pump expires. The Purchaser must install the necessary electrical connection, and
plumbing from the house to the grinder pump location ("Purchaser
Improvements") concurrent with the grinder pump installation by the City.
Within 180 days of the grinder pump being installed, Purchaser shall abandon the
existing septic tank(s).
The grinder pump will not be installed until the Purchaser Improvements have
been completed and approved by the City of Fort Worth. All private
plumbing/electrical improvements must meet applicable City of Fort Worth codes.
The Seller will pay for the grinder pump and the installation of the grinder pump
if Purchaser makes all of Purchaser Improvements within one year of the Sewer
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 5 of 26
February 3,2004
C. At Closing the following shall occur, each of which shall be a concurrent
condition to the Closing:
1. Seller shall deliver to Purchaser a duly executed and acknowledged deed
in a form sufficient to convey title to the Property to Purchaser, and the
deed shall include an avigation easement and an easement for Purchaser's
use of the lake, in the form attached hereto as Exhibit"C";
2. Purchaser shall pay to Seller the Purchase Price by cashier check or wire
transfer to a bank account of which Seller has notified Purchaser at least
twenty-four hours prior to closing; and
3. Purchaser shall pay to Seller the Tap and Impact Fees required under
Paragraph 3 and associated with connecting the Property to the City of
Fort Worth Sewer System by cashier check or wire transfer to a bank
account of which Seller has notified Purchaser at least twenty-four hours
prior to closing.
8.
Costs
All closing costs, costs for a title policy and any other cost accrued or charged relating to the
closing of this transaction shall be paid by Purchaser.
9.
Termination
A. If Purchaser fails to satisfy the conditions necessary to exercise the Option and
exercise this Option Agreement within the time frame specified in this agreement,
then the Option and the rights contained in this Agreement shall automatically and
immediately terminate without notice to Purchaser. Purchaser acknowledges and
agrees that Seller will execute and record such documents as it deems necessary to
demonstrate such termination of this Agreement.
B. If Purchaser fails to accept Seller's plat as required in Section 3(6), then the
Option and the rights contained in this Agreement shall automatically and
immediately terminate. Purchaser acknowledges and agrees that Seller will record
such documents as it deems necessary to demonstrate such termination of this
Agreement_
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 7 of 26
February 3,2004
to Sellers:
City of Fort Worth Real Property
927 Taylor
Fort Worth, Texas 76102
with a copy to:
City of Fort Worth
City Attorney's Office
1000 Throckmorton
Fort Worth, Texas 76102
to Purchasers:
0 %C-Aaed ✓;J<C '7
9222 Ade lbe,�rt-
12.
Entire Agreement
This Agreement contains the entire agreement between the parties relating to the Option herein
granted and the sales agreement. Any oral representation or modification concerning this Option
and sales agreement shall be of no force and effect, excepting a subsequent modification in
writing, signed by the parties. This agreement is separate from and does not modify the lease
agreement.
13.
Binding Effect
This option granted herein shall bind and inure to the benefit of all the respective heirs, personal
representatives, successors, and assigns of the parties hereto.
14.
No Representations or Warranties
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 9 of 26
February 3,2004 _i.
PROPERTY. THE TERMS AND CONDITIONS OF THIS PARAGRAPH SHALL
EXPRESSLY SURVIVE THE CLOSING, SHALL NOT MERGE WITH THE
PROVISIONS OF ANY CLOSING DOCUMENT AND SHALL BE INCORPORATED
INTO THE SPECIAL WARRANTY DEED TO BE DELIVERED BY SELLER AT
CLOSING. PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT THE
PROVISIONS OF THIS PARAGRAPH WERE A MATERIAL FACTOR IN THE
DETERMINATION OF THE PURCHASE PRICE FOR THE PROPERTY.
15.
Paragraph Headings
The paragraph headings contained in this Agreement are for convenience only and shall in no
way enlarge or limit the scope or meaning of the various and several paragraphs hereof.
16.
Survival
The parties agree that the duties and obligation contained in Paragraph 6 "Sewer Connection"
and Paragraph 14 "No Representations or Warranties" shall survive the Closing of this
Transaction.
17.
Date of this Agreement
The phrase "Effective Date" used herein shall mean the last date on which both Seller and
Purchaser have executed this Agreement.
18.
Venue and Governing Law
If any action, whether real or asserted, at law or in equity, arises on the basis of any provision of
this Option on the Property, venue for such action shall lie in state courts located in Tarrant
County, Texas or the United States District Court for the Northern District of Texas, Fort Worth
Division.
This Option shall be construed in accordance with the laws of the State of Texas.
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 11 of 26
February 3,2004 � ��'
L
2
therein and all obligations shall continue under said lease as provided therein. IN NO EVENT
SHALL THE CLOSING DATE BE EXTENDED PAST 180 DAYS, EXCEPT WITH THE
APPROVAL OF THE CITY COUNCIL.
IN WITNESS WHEREOF,this Agreement is executed as of the Effective Date.
SELLER: PURCHASER: ' �G�tN
CITY OF FORT WORTH Printed Name i c-Aaed JOAV-1 401n
ssistant it eager Date: O
Date: '0q—&-0q
Printed Name
Date:
OPTION TO PURCHASE AND PURCHASE AGREEMENT apof ��
February 3,2004 ��d U . MPH"'J".
ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared IU"�as L known to me to be the persons
whose names are subscribed to the foregoing instrument, and acknowledged to me that they
executed the same for the purposes and consideration therein expressed.
IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this r1 day of
Eet4 c^�a�e
52004.
PAMELA SUE CHAPPELL
*®� Notary Public
ti
STATE OF TEXAS
Notary Public, State of Texas
ACKNOWLEDGMENT
STATE OF TEXAS
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, a Notary Public in and for the State of Texas,
on this day personally appeared , known to me to be the persons
whose names are subscribed to the foregoing instrument, and acknowledged to me that they
executed the same for the purposes and consideration therein expressed.
IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this day of
, 2004.
------------
Notary Public, State of Texas < t ro'r-•= 'c-.
1�3SCSIIJv
OPTION TO PURCHASE AND PURCHASE AGREEMENTg '15'8 �6Cr�11•
February 3,2004
Purchaser's Initials Seller 's Initials
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 17 of 26
February 3,2004
EXHIBIT "C"
TO OPTION TO PURCHASE AND PURCHASE AGREEMENT
Special Warranty Deed Form
EXAMPLE OF
SPECIAL WARRANTY DEED
STATE OF TEXAS §
§ Know All Persons by These Presents:
COUNTY OF TARRANT §
Date:
Grantor: CITY OF FORT WORTH
Grantor's Mailing Address: 1000 Throckmorton Street
Fort Worth, Tarrant County, Texas 76102
Grantee:
Grantee's Mailing Address:
Consideration:TEN AND NO/100 DOLLARS ($10.00) and other good and valuable
consideration.
Property:
Reservation from and Exceptions to Conveyance and Warranty:
An avigation easement is reserved on behalf of the public for free and unobstructed
passage of aircraft over the subject property in the navigable airspace above the minimum
altitudes of flight prescribed by federal regulations, including airspace needed to ensure
safety in the takeoff and landing of aircraft. Grantee hereby releases the Grantor, its
officers, agents and employees from any and all claims and liability resulting from the
noise, vibration, fumes, dust fuel, electromagnetic interference and lubricant particles and
all other effects, whether such claims are for injury or death to person or persons or
damages to or taking of property, arising out of or in connection with the use of this
easement, when such use is in compliance with the regulations and guidelines of the Federal
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 19 of 26
February 3,2004
A) the lands enclosed on one side by the lakefront property line of Grantee, on a second side
by the waters of Lake Worth, and on a third and fourth side by two lines, each beginning
at opposite ends of Grantee's lakefront property line, and each being a projection of the
side lot lines of each lot as shown on the Plat. (Hereinafter referred to as the "Access
Easement".) (See Typical Water Use and Access Easement Exhibit A, attached hereto.);
B) the waters of Lake Worth, except that such use shall be nonexclusive except for such
piers and docks constructed thereon;
C) the land lying under the waters of Lake Worth that are adjacent to the access easement,
lying between two lines, each beginning at opposite ends of Grantee's lakefront property
line, and each being a projection of the side lot lines of each lot as shown on the Plat.
(See Typical Water Use and Access Easement Exhibit A, attached hereto.);
D) All improvements, piers or structures on each easement must abut the lakefront property
line of the property conveyed herein and cannot extend into the waters of Lake Worth for
such distance as to deny access to said waters by adjoining land owners. Such
improvements, piers or structures may extend to a point 100 feet from the lakefront
property line into the waters of Lake Worth regardless of the depth of the water at the
point, or to the point at which the elevation of the land lying under Lake Worth is not
greater than 584 feet above mean sea level, but in no instance to extend further than 150
feet from the lakefront property line into the waters of Lake Worth. No construction
beyond the above mentioned limits shall be considered without the prior written approval
from the Director of Engineering for the City of Fort Worth. Variance shall be considered
on a case by case basis. A Typical Water Use and Access Easement drawing is attached
and incorporated to this Special Warranty Deed as Exhibit "A";
It is specifically understood that Grantor shall retain any and all interests in the above described
water and lands subject to such water use and access easement, and does not intend to convey
any of these interests to Grantee unless specifically granted hereto.
Operation, Maintenance and Abandonment of Sanitary Sewer/ Septic Systems
Grantee shall be responsible for operating and maintaining individual septic systems, sewer lines
and laterals on the property conveyed from the point of the City of Fort Worth sewer connection.
Grantee shall connect to public sewer service when available and Grantee shall be responsible for
all applicable connection fees. Further, Grantee shall be responsible for the proper abandonment
of the septic system, sewer lines and laterals. The cost of such abandonment shall be the sole
responsibility of Grantee. Grantee agrees to allow the Grantor access to the lot at reasonable
times for the purpose of inspecting the operation of the septic system to verify compliance with
applicable federal and state laws and statutes as well as the charter and ordinances of the City of
Fort Worth.
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page A of 26
February 3,2004
THE STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Marc A. Ott,
known to me to be the person and officer whose name is subscribed to the foregoing instrument,
and acknowledged to me that he executed the same as the act and deed of the City of Fort Worth,
a municipal corporation of Tarrant County, Texas, for the purposes and consideration therein
expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
12003
THE STATE OF TEXAS §
COUNTY OF TARRANT §
This instrument was acknowledged before me on by
GIVEN UNDER MY HAND AND SEAL OF OFFICE, this day of
2003
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 23 of 26
February 3,2004
Exhibit"D"
Option to Purchase and Purchase Agreement
Typical Sewer Installation and Responsibility Separation
April 25,2003
Type 1 Typical Installation
Gravity Plumbing to Gravity Main
.. ............
City Right of Way- Existing
Property Line :...Plum ing
Existing Septic
Tank to be
• '( �a abandoned by
1 ,.. Customer
AW
OD. ,
I '�
New Plum=lnlldBy C
I
1
OPTION TO PURCHASE AND PURCHASE AGREEMENT Page 25 of 26
February 3,2004
City of Fort Worth, Texas
Imeagor And Council Communication
DATE REFERENCE NUMBER I LOG NAME PAGE
2/19/02 L-13249 30OPTION 1 of 2
SUBJECT APPROVAL OF OPTION TO PURCHASE AND PURCHASE AGREEMENT CONTRACT
TO FACILITATE THE DIRECT SALE OF LAKE WORTH LEASE PROPERTY
RECOMMENDATION:
It is recommended that the City Council authorize the City Manager to approve the Option to Purchase
and Purchase Agreement contract, with the Lessees of the Lake Worth lease properties listed on
Exhibit "A" to facilitate the direct sale of eligible Lake Worth lease properties. (See attached contract
and Exhibit "A")
DISCUSSION:
On July 15, 2001, House Bill No. 1490 was signed into law and went into effect. This amendment to
the Texas Local Government Code, Section 272.001(h), allows a municipality having a population of
575,000 or less and owning land within 5,000 feet of the shoreline of a lake, without notice or the
solicitation of bids, to sell the land to the persons leasing the land for the fair market value of the land.
In December 2001, City staff prepared an Informal Report to the City Council (Informal Report No. 8376
attached as Exhibit "B") which provided an update on the status of the sale of lease lots, and also
recommended a four-year Lease Lot Sales Plan and a Water/Sewer Infrastructure Improvement Plan
around Lake Worth. This sales plan includes 268 residential properties with an estimated market value
of $4.7 million.
In order to facilitate the direct sale of the residential Lake Worth lease properties, it is recommended
that a sales option contract be executed with the Lessees for the properties eligible for sale. The sales
option will allow the existing lessees to purchase their leased properties at today's fair market value
adjusted annually upward by 2% per year until sold by the City in accordance with the recommended
timeline outlined in Informal Report No. 8376.
The properties eligible for this contract are listed on the attached Exhibit "A". The option fee provided in
the contract is $500.
Due to the proximity of the Joint Reserve Base/Naval Air Station, an avigation easement will be
reserved on behalf of the public and incorporated into the Special Warranty Deed used to convey these
properties.
Proceeds from the sale of these City-owned Lake Worth lease properties will be deposited in a Lake
Worth Infrastructure Fund Account in accordance with M&C G-12916 dated May 16, 2000. The
proceeds are escrowed and designated for water and wastewater improvements within the area of the
City of Fort Worth surrounding and adjoining Lake Worth.
City of Fort Worth, Texas
"ager And Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
2/19/02 L-13249 1 30OPTION 2 of 2
SUBJECT APPROVAL OF OPTION TO PURCHASE AND PURCHASE AGREEMENT CONTRACT
TO FACILITATE THE DIRECT SALE OF LAKE WORTH LEASE PROPERTY
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the Engineering Department, Real Property Services Division is
responsible for the collection and deposit of funds from this sale.
MG:n
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
PE45 444192 0601000
Mike Groomer 6140
Originating Department Head:
Douglas Rademaker 6157 (from) APPROVED 02/19/02
Additional Information Contact:
Douglas Rademaker 6157