HomeMy WebLinkAboutContract 29742 CITY SECRETARY
CONTRACT NO. � 3
FIRST AMENDMENT TO PURCHASE CONTRACT
This First Amendment to Purchase Contract ("First Amendment") is entered into by and between
the City of Fort Worth, a home-rule municipal corporation ("Seller"), and Fort Worth Southside
Development District,Inc. dba Fort Worth South,Inc., a Texas non-profit corporation, ("Purchaser").
RECITALS
A. Seller and Purchaser entered into a Purchase Contract (City Secretary Contract No. 28494) with
the effective date of March 27, 2003, regarding the purchase of approximately 406,166.80 square foot
tract of land described as Lot IA, Block 6R, Mistletoe Heights Addition to the City of Fort Worth,
Tarrant County, Texas and as shown on Exhibit"A"("Property").
B. Under the Purchase Contract, Purchaser is obligated to perform certain tasks in order to close on
the Property("Closing Contingencies").
C. Over the last year Purchaser has worked to fulfill the terms of the Contract, however, market
conditions, rezoning and site plan challenges have prompted the Purchaser to request that the time
allowed to perform all of the terms of the agreement be extended and to amend the zoning requirements.
D. During the extended period, the purchase price would continue to accrue interest at an annual rate
of 10%. The accrued interest will be added to the purchase price at closing.
E. Seller and Purchaser desire to amend the Purchase Agreement to extend the closing date to May
31,2004 and amend the zoning requirements.
AGREEMENT
In consideration of the mutual covenants contained in this First Amendment, Seller and Purchaser
agree to amend Section 7 of the Purchase Contract as follows:
Section 7 Closing ContinEencies.
1. Section 7(a) of the Purchase Contract is amended to provide that Closing must occur
no later than May 31,2004.
2. Section 7(a)(1) is amended to state the following:
"Purchaser having obtained all necessary municipal approvals for
rezoning of the Property to Planned Development/Specific Use for all
uses in MU-2 High Intensity Mixed Use, site plan required."
3. Section 7(c) is amended with the addition of the following:
"If Closing does not occur by May 31, 2004, then the Purchase Contract is
automatically terminated and Seller shall retain the initial Earnest Money,
the additional Earnest Money and all interest accrued on the Earnest Money
from October 1, 2003."
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Except as amended by this First Amendment, all of the terms and conditions of the Purchase
Contract are ratified and remain in full force and effect.
EXECUTED as of the 31"day of March,2004.
SELLER:
CITY OF FORT WnORTH ,'ontract Authorization,/
Reid Rector,Assistant City Manager =e
ATTEST- APPROVED AS TO FORM
. AND L LIT
Cvr.G City Secretary
sistant City Attorney
PURCHASER:
FORT WORTH SOUTHSIDE DEVELOPMENT DISTRICT, INC. DBA FORT WORTH SOUTH,
INC.,
a Texas -profit corporation
By: A)
Donald W. Scott, President
EXHIBIT "A"
Description of Property
Lot 1, Block 6-R, Mistletoe Heights Addition to the City of Fort Worth, Tarrant County, Texas,
according to the plat recorded in Volume 388-160, Page 42, Plat Records, Tarrant County,
Texas,
SAVE AND EXCEPT that portion conveyed to the State of Texas by deed recorded in
Volume 14173, Page 409, Deed Records, Tarrant County, Texas.
N ill
City of Fort Worth, Texas
Magor and Council Communication
COUNCIL ACTION: Approved on 3/23/2004
DATE: Tuesday, March 23, 2004
LOG NAME: 17SOUTHAMEND REFERENCE NO.: **C-19999
SUBJECT:
Authorization to Amend the Purchase Agreement and Authorize the Sale of City-Owned Property
located at the Northeast Corner of Forest Park Boulevard to Fort Worth South, Inc. In Accordance
with Section 272 of the Local Government Code
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to amend the Purchase Agreement (Contract No. 28494) to change the
zoning requirement and extend the option period to May 31, 2004; and,
2. Authorize the City Manager to execute an appropriate deed conveying the property to Fort Worth
South, Inc. and record the deed, if the terms of the option agreement as amended are satisfied.
DISCUSSION:
On March 18, 2003 (M&C L-13515), the City Council authorized the sale of 9.34 acres of property located at
the northeast corner of Forest Park Boulevard and Rosedale Street to Fort Worth South, Inc. Fort Worth
South, Inc. proposes to build a mixed-use development consisting of a hotel, retail, office, structured
parking, residential and a major anchor totaling 337,000 square feet—total project costs of over$27 million.
The Purchase Agreement (City Secretary Contract No. 28494) outlines conditions that must be performed
before Fort Worth South, Inc. can purchase the property. Over the last year, Fort Worth South, Inc. in a joint
venture with Trademark Property Company has worked to fulfill the terms of the option agreement.
However, market conditions, rezoning and site planning challenges necessitate the following amendments
to the zoning requirement and Option Period:
Zoning Change
Current Provision: Rezone the property to Planned Development/Special Use, Mixed Use — 2 with site plan
(PDSU- MU2)
Proposed Change: Rezone the property to Planned Development/Specific Use for all uses in MU-2 High
Density, Mixed-Use, site plan required
Option Period
Current Provision: Option period expires March 31, 2004
Proposed Change: Option period to be extended to May 31, 2004
All other provisions contained in the option agreement and (M&C L-13515) remains'the same. As stated in
the Purchase Agreement, the purchase price has been accruing interest at an annual rate of 10% since
October 1, 2003, and will continue until the date of closing. This accrued interest will be added to the
purchase price at closing. The proceeds from the sale will be deposited into the Capital Projects Reserve
Lom me: 17SOUTHAMEND Paue 1 of 2
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Fund.
This property is located in COUNCIL DISTRICT 8, MAPSCO 76K, Magnolia Village Neighborhood
Empowerment Zone.
FISCAL INFORMATIONICERTIFICATION:
The Finance Director certifies that Engineering Department, Real Property Management Division is
responsible for collection and deposit of funds from this sale.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 444552 03100001000 $2.030.834.00
Submitted for City Manager's Office b1c Reid Rector (6140)
Originating Department Head: Tom Higgins (6192)
Additional Information Contact: Christine Maguire (8187)
Lo2name: 17SOUTHAMEND PauP of