HomeMy WebLinkAboutContract 30471 C'RETARY
9�
NO.
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agreement is made and entered into
by and between KB Home Lone Star, L.P. ("Assignor") and Nicole A. Thomas,
("Assignee") and the City of Fort Worth, ("City")
RECITALS
A. Ramey Avenue L.P ("Ramey") and the City of Fort Worth, Texas (the "City")
entered into that certain Tax Abatement Agreement ("Agreement") for Property
Located 2620 Lucas Drive - Fort Worth, Texas 76119 aka Lot 6, Block 4 of
Ramey Place Addition ("Property") which is located in the Stop Six
Neighborhood Empowerment Zone, such Agreement approved by the City
Council of Fort Worth February 25, 2003, City Secretary Contract Number
n?,S ("Agreement"):
B. Pursuant to that certain Special Warranty Deed dated as of November 17, 2003,
recorded under Tarrant County Deed Records, Ramey conveyed the Property to
Assignor and Assignor acquired title to the Property which is the subject of the
Agreement:
C. Section 5 of the Agreement permits Ramey to assign all of its rights under the
Agreement to KB Home Lone Star, L.P. without obtaining the prior consent of the
City Council:
D. Ramey assigned the Agreement to KB Homes Assignor, such Agreement is dated
3 —$-014 City Secretary Contract Number 300 341
E. Pursuant to that certain Special Warranty Deed dated as of June 22, 2004,
recorded under Tarrant County Deed Records, Assignor conveyed the Property to
Nicole A. Thomas and Assignee acquired title to the real property which is the
subject of the Agreement.
F. Section 5 of the Agreement permits Assignor to assign all of its rights under the
Agreement to Assignee, without obtaining the prior consent of the City Council:
AGREEMENT
NOW THEREFORE, in consideration of the mutual terms and conditions herein
contained and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereby agree as follows:
1. Assigmnent. Assignor hereby ASSIGNS, TRANSFERS AND CONVEYS all
rights, duties, obligations, title and interest under the Agreement to Assi
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2. Acceptance. Assignee hereby accepts the Assignment granted herein, and assumes
all of Assignor's rights, duties and obligations arising under the Agreement.
3. Effective Date. The effective date of this Assignment is June 22, 2004 ("Effective
Date"). All rights, duties and obligations under the Agreement arising, accruing or
relating to the period before the Effective Date are allocated to Assignor and all
rights, duties and obligations arising, accruing or relating to the period thereafter
shall be allocated to Assignee.
4. Release and Surrender of Assignor.lor. Except as otherwise expressly set forth in this
Assignment, Assignor will be discharged from any and all further obligations under
the Agreement as of the Effective Date. Assignor must surrender the Property to
the Assignee on or before 11:59 p. in. on the date prior to the Effective Date in its
present condition. Assignor relinquishes any right to any improvements, fixtures or
equipment on the Property.
5. Representations. Assignor represents, warrants and covenants with Assignee that
as of the Effective Date, that Assignor is not in default under any of its obligations
contained in the Agreement.
6. City of Fort Worth's Consent. City of Fort Worth hereby consents to this
Assignment upon the terms and conditions set forth herein. Unless and until City of
Fort Worth has executed this Assignment, this Assignment is of no effect the
consent granted herein should not be construed as consent to any further assignment
except as provided in the Agreement. The failure or delay of City of Fort Worth in
seeking to enforce any provisions of the Agreement or this Assignment should not
be deemed a waiver of rights or remedies that City of Fort Worth may have, or a
waiver of any subsequent breach of the terms and provisions therein or herein
contained.
7. Notices. Any notice given by any party to another party hereto must be given in
the manner required under the Agreement. The addresses set forth below
supercede any addresses for notices set forth in the Agreement.
CITY OF FORT WORTH:
City of Fort Worth
Housing Department (NEZ)
1000 Throckmorton
Fort Worth, Texas 76102
2
. L
ASSIGNEE:
Nicole A Thomas
2620 Lucas Drive
Fort Worth, TX 76119
ASSIGNOR:
KB Home Lone Star, L.P.
2711 LBJ Freeway#600
Dallas, TX 75075
8. Successors. Except as herein otherwise provided, this Assignment will be binding
upon and inure to the benefit of the parties, and their respective heirs, executors,
administrators, successors and assigns.
9. Counterparts. This Assignment may be executed in multiple counterparts, each of
which, once executed, will be an original and fully-binding on the parties so
executing; and all such counterparts together constitute one and the same
agreement.
10. Binding Offer. This Assignment will be not be binding until executed and
delivered by all three parties.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the
date first above written.
ASSIGNOR: KB Home Lone Star, L.P.
Name: N vIb C H.e4sT7A Al
Title: ,06;:-a17-
ASS19NEE:
T!�
A Thomas
r�: .. '�Al ns ,
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CITY OF FORT WORTH
Assistant City Manager
ATTEST:
City Secretary
APPROVE AS TO FORM AND LEGALITY:
Assistant City Attorney
M& C: C-19490
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4
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
,Q J�_� , Assistant City Manager of the CITY OF FORT WORTH, a
municipal corporation, known to me to be the person and officer whose name is
subscribed to the foregoing instrument, and acknowledged to me that the same was the
act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was
duly authorized to perform the same by appropriate Mayor and Council Communication
of the City Council of the City of Fort Worth and that he executed the same as the act of
the said City for the purposes and consideration therein expressed and in the capacity
therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2004.� /
otary Public in and for
the State of Texas
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a exp ces
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
b9VI D C ftlel5r /V ; `SOe,vrof KB Home Lone Star L.P., a Texas
limited partnership, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as the act
and deed of the KB Home Lone Star, L.P. a Texas limited partnership.
1--TA'EN UNDER ;r�Y HA;r� AND SEAL OF OFFICE this
day of , 2004.
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Not is in and for
the State of exasp�
ro<� o�c TERRI if. ALLRED
(votary Public
State of Texas
OFt�+ Comm. Expires 05-20-2008
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Nicole
A Thomas known to me (or proved to me on the oath of ,
or through ) to be the person whose name is subscribed
to the foregoing instrument and acknowledged to me that she executed the same for the
purposes and consideration therein expressed.
GIVEN UNDER V41 x1' HAND AND SEAL OF OFFICE this
� days£>> - , 2004.
NotaPublic in an for
the State of Texas r,.�'^ KYLE BERTSCH
Notary Public
State of Texas
''�o� + Comm. Expires 11.01.2009
City of Fort Worth, Texas
"agor And 4:ouncit Communication
DATE REFERENCE NUMBER I LOG NAME PAGE
2/25/03 C-19490 05RAMEY 1 of 2
SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH RAMEY AVENUE, L.P., A
TEXAS LIMITED PARTNERSHIP, AND KB HOME LONE STAR, L.P., A TEXAS
LIMITED PARTNERSHIP, FOR THE RAMEY PLACE ADDITION IN THE STOP SIX
NEIGHBORHOOD EMPOWERMENT ZONE
RECOMMENDATION:
It is recommended that the City Council:
1. Approve the application of Ramey Avenue, L.P. and KB Home Lone Star, L.P. for a five-year
Municipal Property Tax Abatement for the Ramey Place Addition in the Stop Six Neighborhood
Empowerment Zone (NEZ); and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with
Ramey Avenue, L.P., a Texas Limited Partnership, and KB Home Lone Star, L.P., are true and
correct; and
3. Authorize the City Manager to enter into a Tax Abatement Agreement with Ramey Avenue, L.P.,
and KB Home Lone Star, L.P., in accordance with the NEZ Basic Incentives.
DISCUSSION:
Ramey Avenue, L.P., a Texas Limited Partnership, and KB Home Lone Star, L.P., a Texas Limited
Partnership, are the owner/developer of the Ramey Place Addition located off the 5900 block of Ramey
Avenue and Cass Street in the Stop Six NEZ and Neighborhood Empowerment Reinvestment Zone
(NERZ No. 1). Ramey Avenue, L.P. and KB Home Lone Star, L.P. applied for a five-year municipal
property tax abatement under the NEZ Basic Incentives (M&C G-13208R dated June 5, 2001, M&C G-
13580 dated April 2, 2002, and M&C G-13662 dated July 23, 2002, as amended). The Housing
Department has reviewed the application and certified that the property meets the eligibility criteria to
receive NEZ municipal property tax abatement. The NEZ Basic Incentives offers a five-year municipal
property tax abatement of the increased value of improvements to the owner of any new home
constructed within a NEZ.
KB Home Lone Star, L.P. will invest $6,200,000 to construct sixty (60) single-family homes, not
including the model home, in the Ramey Place Addition. The addresses, types and site plan of the
proposed development are attached to this report.
Upon execution of the tax abatement agreement, the total assessed values of each home in the Ramey
Place Addition used for calculating municipal property tax will be frozen for a five-year period, starting
on the date the home is sold to a homebuyer to be used as a primary residence, at the pre-
improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, as follows:
0 Pre-improvement TAD Value of Improvements -0-
City of Fort Worth, Texas
qvagor And Council Communication
DATE REFERENCE NUMBERLOG NAME PAGE
2/25/03 C-19490 05RAMEY 2 of 2
SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH RAMEY AVENUE, L.P., A
TEXAS LIMITED PARTNERSHIP, AND KB HOME LONE STAR, L.P., A TEXAS
LIMITED PARTNERSHIP, FOR THE RAMEY PLACE ADDITION IN THE STOP SIX
NEIGHBORHOOD EMPOWERMENT ZONE
• Pre-improvement Estimated Value of Land $2,082 per lot
• Total Pre-improvement Estimated Value $2,082 per lot
The municipal property tax on the improved value is estimated at $649 per house, per year, or a total of
$194,625 over the five-year period.
KB Home Lone Star, L.P. expects to complete construction on or before September 30, 2003, and sell
sixty (60) homes to new owners. Upon the sale of each home by KB Home Lone Star, L.P., the new
owner may assume relevant terms and conditions under this tax abatement agreement by entering into
a new tax abatement agreement with the City, if the new owner meets all eligible criteria as stated in
the NEZ Basic Incentives.
The tax abatement agreement shall provide that the agreement may be assigned to KB Home Lone
Star, L.P., KB Home Lone Star, L.P.'s affiliates or its first mortgagee, or to a homeowner who will use
the required improvements as its primary residence or the homeowner's mortgagee, and any other
assignment must be approved by the City Council.
The Ramey Place Addition is located in COUNCIL DISTRICT 5.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that the above action will have no material effect on City funds.
RR:k
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to)
Reid Rector 6140
Originating Department Head:
Jerome Walker 7537 (from) APPROVED 2/25/03
Additional Information Contact:
Jerome Walker 7537