HomeMy WebLinkAboutContract 50882-CA1 CONSENT TO ASSIGNMENT OF
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TAX ABATEMENT AGREEMENT
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_� This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT
N 0. Asa L("Consent") is made and entered into by and between the CITY OF FORT
WORTH ("City"), a home rule municipal corporation organized under the laws of the State of
Texas, and Scenic Race, LLC ("Assignor or Owner"), and PMA FW Presidio, LLC
("Assignee").
The following introductory provisions are true and correct and from the basis of this
Consent:
A. On or about April 10, 2018, the City and Scenic Race, LLC entered into that certain Tax
Ilbatement Agreement on file in the City Secretary's Office as City Secretary Contract No.
_50'oQ (the "Agreement"). Under the Agreement, Scenic Race, LLC agreed to construct a
138 residential unit multi-family apartment complex, (i) consisting of four (4) three (3)- story
apartment buildings with a mix of units (the "Required Improvements") on certain land in the
City (the "Land") in return for a 5-year real property tax abatement on improvements located on
the Land (the "Abatement"), all as more specifically set forth in the Agreement. The Abatement
was granted pursuant to the City's Neighborhood Empowerment Zone Policy ("NEZ Policy").
B. Assignor has sold its interest in the Land and Required Improvements to Assignee and to
assign all right, title and interest in the Agreement to Assignee.
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. The City hereby consents to an assignment by Assignor to Assignee of all right, title and
interest granted to Assignor by the Agreement, effective as of 2018,
("Effective Consent Date").
2. The City consents to such assignment expressly upon the promise and covenant by
Assignee, and Assignee hereby promises and covenants to the City that as of the
Effective Consent Date Assignee will comply with all duties and obligations of Owner
set forth in the Agreement.
3. Assignee understands and agrees that no act or omission of Assignor, whether on, before
or after the Effective Consent Date, will serve to mitigate (i) any Abatement Amounts,
Terms and Conditions set forth in Sections 2 and 3 of the Agreement (ii) any Event of
Default set forth in Section 4 of the Agreement.
OFFICIAL RECORD
CITY SECRETARY Consent to Assignment of Tax Abatement Agreement# Q$$
FT,WORTH,TX from Scenic Race, LLC to PMA FW Presidio, LLC
Approved by M&C C-28659 on April 10, 2018
1
4. Nothing in this Consent shall be deemed to grant Assignee any rights under the
Agreement that are an addition to or greater than those of the Owner thereunder.
5. All terms in this Consent that are capitalized but not defined shall have the meanings
assigned to them in the Agreement.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective
Consent Date.
CITY OF FORT WORTH
"
Fernando Costa
Assistant City Manager
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando
Costa, 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 9sYjday of
2018.
.�"""��� TRIKINYA L. JOHNSON
�' µY P�e%i
Notary Public,State of Texas
Notary bl' to and for =�•; p
z 9.. +� Comm. Expires 04-17-2022
the State of exas '��,;��,;;�� Notary ID 1238832.0
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ATTE T. Vim. O
Mays ty S cretary * OFFICIAL RECORD
aS CITY SECRETARY
FT.WORTH,TX
Consent to Assignment of Tax Abatement Agreement #ZCH8011
from Scenic Race, LLC to PMA FW Presidio, LLC
Approved by M&C C-28659 on April 10, 2018
2
APPROVED AS TO FORM AND LEGALITY:
(
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-28659
ASSIGNOR: Scenic Race, LLC
a Texas Limited Liability Company
By:
Name: Pretlow Riddick
Title: Manager
ASSIGNEE: PMA FW PRESIDIO,LLC
a Texas Limited Liab• • ompany
By:
Name: Peter Abera'=
Title: Manager
Consent to Assignment of Tax Abatement Agreement#,50
from Scenic Race, LLC to PMA FW Presidio, LLC
Approved by M&C C-28659 on April 10, 2018
3
STATE OF TEXAS §
COUNTY OF TENT §
DAIIA5
BEFORE ME, the undersigned authority, on this day personally appeared Pretlow Riddick,
Manager of Scenic Race, LLC, a Texas limited liability company, 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 Scenic Race, LLC.
GIVEN UNDER MY HAND AND SEAL: OF OFFICE this 2!4 day of
2018.
—
Jim, LAURA B KARLS
Notary Public in and for Notary Public
the State of Texas cl State of Texas
� � ID# 12H84924-6
Et My Comm.Exp.01 2020
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Peter Aberg, Manager of
PMA FW Presidio, LLC, a Texas limited liability company, 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 PMA FW Presidio, LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this _-L&S` day of
��►� 2018.
No ary Public in and for .�"�,"'r"" LAURI COX
the State of Texas ' Notary Public,state of texas
lot$ Comm.Expires 08-04.2019
oV;°,ra� Notary ID 129908484
Consent to Assignment of Tax Abatement Agreement# �
from Scenic Race, LLC to PMA FW Presidio, LLC
Approved by M&C C-28659 on April 10, 2018
4
Nl tReview
Official
CITY COUNCIL AGENDA FORTWORTII
COUNCIL ACTION: Approved on 4/10/2018
DATE: 4/10/2018 REFERENCE NO.: C-28659 LOG NAME: 19NEZPRESIDIO
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement-Agreemerd with Scenic Race,
LLC, and Assignment After Closing to PMA FW Presidio, LLC, to Construct a 138
Residential Unit Complex Located at the Corner of Oakhurst Scenic Drive and Race
Street in the Six Points Neighborhood Empowerment Zone and Permit Certain
Payments to the Fort Worth Housing Finance Corporation to Satisfy Affordable
Housing Requirements (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement with Scenic Race, LLC, and assignment after closing to PMA FW Presidio, LLC, to
construct a 138 residential unit complex located at the corner of Oakhurst Scenic Drive and Race
Street in the Six Points Neighborhood Empowerment Zone, in accordance with the Neighborhood
Empowerment Zone Tax Abatement Policy and Basic Incentives and permit certain payments to
the Fort Worth Housing Finance Corporation to satisfy affordable housing requirements.
DISCUSSION:
Scenic Race, LLC (Property Owner), is the owner of property located at Abstract 958, Tracts 19D,
26B, 27A, 27A1, 27B, 31A and 31 B, John Little Survey, and Block 1, Lots 16 through26, EA Self
Addition, an Addition to the City of Fort Worth, Tarrant County, Texas. The property is located
within the Six Points Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to sell the property to PMA FW Presidio, LLC who will invest an
estimated amount of$18,442,000.00 to construct a 138 residential unit complex (Project). The
Neighborhood Services Department reviewed the application and certified that the Project met the
eligibility criteria to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy
and Basic Incentives includes a five-year municipal property tax abatement on the increased value
of improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
A multi-family project located in a NEZ must satisfy one of the following for a five-year tax
abatement:
At least 10 percent of the total units constructed or rehabilitated shall be affordable (as defined by
the U.S. Department of Housing and Urban Development) and set aside to persons with incomes
at or below 80 percent of area median income based on family size and at least another 10
percent of the total units constructed or rehabilitated shall be affordable (as defined by the U.S.
Department of Housing and Urban Development) and set aside to persons with incomes at or
below 60 percent of area median income based on family size; or
If specifically permitted by the City Council, in its sole discretion and as specified in the Tax
Abatement Agreement, pay the Fort Worth Housing Finance Corporation an annual sum equal to
$200.00 for each rental residential unit located on the property which is subject to the tax
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=25732&councildate=4/10/2018[04/23/2018 11:09:20 AM]
M&C Review
abatement. The Fort Worth Housing Finance Corporation is a housing finance corporation
created pursuant to authorization by the City Council of the City of Fort Worth in accordance with
Chapter 394, Texas Local Government Code, to assist in the financing of the costs of residential
development and ownership for citizens of decent, safe and sanitary housing at affordable prices.
The developer is requesting the option to pay the Fort Worth Housing Finance Corporation the
annual sum in lieu of setting aside the affordable units and Staff recommends approval of this
request.
Upon execution of the Agreement, the total assessed value of the improvements used for
calculating municipal property tax will be frozen for a period of five years starting January 2020 at
the estimated pre-improvement value, as defined by the Tarrant Appraisal District (TAD) in 2018,
after demolition of the existing buildings so the pre-improvement value for tax abatement purposes
will be $0.00.
The Municipal Property Tax Abatement on the improved value of the Project after construction is
estimated in the amount of$148,459.00 per year for a total in the estimated amount of
$742,295.00 over the five-year period. However, this estimate may differ from the actual tax
abatement value, which will be calculated based on the Tarrant Appraisal District appraised value
of the property.
The Tax Abatement Agreement may be assigned to an affiliate of PMA FW Presidio, LLC, without
the consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner
meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION-
The Director of Finance certifies that upon approval of the above recommendations an estimated
$742,295.00 in property taxes will be abated over the five year period from 2020-2025. This
amount will be included in the City's five year financial forecast.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID I I ID I I Year (Chartfield 2)
Submitted for City Manager's Office by Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
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M&C Review
Form 1295 - PMA FW Presidio LLC ( 03).adf
Form 1295 Scenic Race LLC.pdf
Map for Council Presidio Project.pdf
Rend i'„rina.pdf
Site Plan with Landscapinci.adf
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CERTIFICATE OF INTERESTED PARTIES FORM 1295
1011
Complete Nos.1®4 and 6 if there are interested parties. OFFICE USE ONLY
Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING
1 Name of business entity Tiling form,and the city,state and country of the business entity's place Certificate Number:
of business. 2018-328081
PMA FW Presidio,LLC
Dallas,TX United States Date Filed:
2 Name of govemmental entity or state agency that is a party to the contract for which the form is 03/20/2018
being filed.
City of Fort Worth Date Ack wledg
3 Provide the identification number used by the governmental entity or state agency to track or identity the contract,and provide a
description of the services,goods,or other property to be provided under the contract
Tax Abatement
Apartment Development
Nature of interest
4
Name of Interested Party City,State,Country(place of business) (check applicable)
Controlling I Intermediary
5 Check only If there is NO Interested Party.
X
1.6 UNSWORN DECLARAT70N
My name is Pd-ir Mn , and my date of birth Is
My address I6 2924 Carlisle Street,#365 Dallas TX 75204 USA
(street) (CRY) (state) WD Coft) (wry)
I declare under penalty of perl►ey that the foregoing is true and correct.
Executed in Dallas County,state of on the ) day of MiM lJ 20 1$
(mom) (year)
Signature of authori d agent of c6ptracting business entity
Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.5523