M&C Review


COUNCIL ACTION:  Approved on 8/15/2017 

DATE: 8/15/2017 REFERENCE NO.: **L-16061 LOG NAME: 25ROW/EASEMENT TRACT
CODE: L TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT:  

Ratify Purchase and Sale Agreement with Event Facilities Fort Worth, Inc., for Acquisition of Right-of-Way and of an Easement for Utilities Totaling 0.039 Acres Along the Eastern Frontage of Montgomery Street for the Montgomery Street Project in Exchange for a Reduction in Outstanding Consideration for City Secretary Contract No. 45622-EX (COUNCIL DISTRICT 9)


RECOMMENDATION:

It is recommended that the City Council ratify the execution of a Purchase and Sale Agreement with Event Facilities Fort Worth, Inc., for acquisition of (i) 0.030 acres of fee property for right-of-way located along the eastern frontage of Montgomery Street at the southwest corner of Trail Drive and (ii) a 20' x20' electrical easement and right-of-way located on approximately 0.009 acres of property located adjacent to the eastern frontage of Montgomery Street for the Montgomery Street Project, in exchange for a reduction of $94,667.70 in outstanding consideration for City Secretary Contract No. 45622-EX.

 
DISCUSSION:

The 2014 bond-funded project known as Montgomery Street from I-30 to Camp Bowie Boulevard consists of an existing arterial scheduled to be reconstructed in coordination with the Dickie's Arena and parking garage project.

For the Montgomery Street project, the City of Fort Worth (City) needs to acquire from Event Facilities Fort Worth, Inc. (EFFW) the following property interests:
  

Tract

Size

Location

Purpose

Appraised Value

ROW Tract (fee)

0.030 acres

Eastern Frontage of Montgomery at the southwest corner of Trail Drive

Right-of-way and Right Turn Lane

$74,924.16

Easement Tract

20'x20' on approximately 0.009 acres

Adjacent to the eastern frontage of Montgomery Street

Electrical Easement

$19,743.54

TOTAL:    $94,667.70

EFFW is a support organization to the Southwestern Exposition and Livestock Show (SWELS), and by extension, supports agricultural and livestock events at the Will Rogers Memorial Center (WRMC) owned by the City.

As consideration for the right-of-way and easement, EFFW will convey the property interests to the City in exchange for a reduction to the outstanding Partial Consideration owed to the City by EFFW under a previous Exchange Contract, as described below.

On May 21, 2014, the City of Fort Worth and EFFW entered into an Exchange Contract (CSC No. 45622-EX) for the exchange of property (Exchange Contract), with the City conveying to EFFW a remainder tract from a parcel acquired for the Chisholm Trail Parkway project (City Tract) and EFFW agreeing to pay the costs of the City to acquire a tract of land on Bryce Avenue near Montgomery Street to be incorporated into use for WRMC (Bryce Tract).

Because the value of the City Tract was greater than the value of the Bryce Tract, additional consideration was owed by EFFW to City in the amount of $397,544.00 (Partial Consideration).  City Council approved in M&C L-15678 for the City to enter into a license agreement with EFFW for storage purposes, and the City would receive a license fee credit from EFFW in the amount of the Partial Consideration.  However, a license agreement was not entered into by the parties and therefore the Partial Consideration remains outstanding.

The City and EFFW agree that the fair market value of the ROW Tract is valued at $74,924.16 and the fair market value of the Easement Tract is valued $19,743.54.  Following the conveyance of the property interests to the City, the outstanding Partial Consideration shall be reduced so that the remaining Partial Consideration owed shall be $302,886.30, less the City's closing costs (escrow fees and recording costs) related to the transaction contemplated by the Purchase and Sale Contract.

Due to the timing of the Montgomery Street Project and the coinciding City Council summer break, the parties have executed the agreement and Staff now requests that the City Council ratify the execution of this Purchase and Sale Contract and all terms and conditions therein.

 
FISCAL INFORMATION/CERTIFICATION:

The Director of Finance certifies that the Public Events Department is responsible for the collection of funds due to the City under this contract and that approval of the above recommendations will result in a credit being provided by EFFW.

TO
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

FROM
    Fund Department
ID
Account Project
ID
Program Activity Budget
Year
Reference #
(Chartfield 2)
Amount

Submitted for City Manager's Office by:
Susan Alanis (8180)
Originating Department Head:
Kirk Slaughter (2501)
Additional Information Contact:
Kirk Slaughter (2501)

 
 
ATTACHMENTS
  Form 1295 Certificate-Purchase Sale Contract EXECUTED.pdf
  Sale and Purchase Events Facilities Fort Worth Inc .pdf