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Home My WebLink AboutContract 47487-A1CITY SECRETARY Ff C� D")II -(TRACT NO. OCT , IV�� AMENDMENT NO. 1 TO C/7y�r�- 2018 TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A C17YS�C� Q �r8 NEIGHBORHOOD EMPOWERMENT ZONE (CITY SECRETARY CONTRACT NO. 47487) This AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE ("Amendment") 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 FW Bluff Apartments, L.P. ("Owner"). The following introductory provisions are true and correct and for the basis of this Amendment: A. As of January 12, 2016 the City and Owner entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 47487 (the "Agreement"). Under the Agreement, Owner agreed, to construct a 276 Unit Multi -Family Apartment Complex (the "Project", as more specifically defined in the Agreement) on certain real property located in the Six Points Neighborhood Empowerment Zone. In return, the City agreed to grant Owner a Municipal Tax Abatement as authorized by Chapter 378 of the Texas Local Government Code and outlined in the Agreement. B. Owner completed construction of all of the Required Improvements within thirty-six months from the date of Council approval as provided in section 1.3 of tb, agreement (the "Completion Date of Required Improvements"). The Required Improvements were deemed complete upon the issuance of a final certificate of occupancy for the Required Improvements by the Planning and Development Department. Owner did construct a 276 unit multi -family apartment complex consisting of nineteen three story apartment buildings with a mix of units and having Construction Costs, excluding land, upon completion of $30,300,000.00 for the Required Improvements by the Completion Deadline as provided in Section 1.1 and 1.2 of the agreement. C. The Agreement shall be amended to correct section 2.4 ("Terms"); and section 3.3. ("Provision of Information"). NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City and Owner hereby agree as follows: 1. Section 2.4 of the Agreement (Terms) is hereby amended to allow the Abatement Beginning Date to coincide with the first year of the Compliance Auditing Term. Both to begin January 1, 2018 and end December 31, 2022. 2. Section 3.3 of the Agreement (Provision of Information) is hereby amended to reflect the correct language: --I ®EEV1-'� Page 1 CITY SECRETARY Amendment No. 1 to CSC No. 47487 FT WORTH, TX Neighborhood Empowerment Zone Tax Abatement Agreement with FW Bluff Apartments, L.P. On or before March 1 following the end of every year, Owner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. This information shall include, but not be limited to, the following: 3.3.1. The number and dollar amounts of all the Construction Costs and subcontracts awarded on the Project. 3.3.2. Evidence of the Annual payment to the FWHFC of $200.00 for each rental residential unit located on the property, and compliance with the required ADA units . Owner shall supply any additional information requested by the City in its evaluation of Owner's compliance with each of the terms and conditions of this Agreement. Failure to provide all information required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3. All terms and conditions of the Agreement that are not expressly amended pursuant to this Amendment shall remain in full force and effect. EXECUTED as of the last date indicated below: CITY OF FORT WORTH: BY Fernando Costa Assistant City Manager FW BLUFF APARTMENTS, L.P. By: FW Bluff Apartments, LP, a Delaware Limited Partnership By: CD Oakhurst Apartments GP, LLC, a Delaware limited liability company, its managing/general partner By: V" V W. Pretlow Riddick Governing Person Date: /0�30�i8 Date: `6 — 30 — OFF AL RECORL, Page 2 ClT� SECREiARIC Amendment No. I to CSC No. 47487 FT. Wo Neighborhood Neighborhood Empowerment Zone Tax Abatement Agreement with FW Bluff Apartments, L.P. APPROVED AS TO FORM AND LEGALITY: By: Melinda Ramos Sr. Assistant City Attorney Approved by M&C C-28770 August 7, 2018 OF fi � :c Atte by: Mary J. kj*r,1cify Secratoy Page 3 Amendment No. 1 to CSC No. 47487 Neighborhood Empowerment Zone Tax Abatement Agreement with FW Bluff Apartments, L.P F FFICIAL RECORD ITY SECRETARY FT WORTH, TX I M&C Review • �• FORTWORTH Czar C:OUNCri- Arr-Nna N� COUNCIL ACTION: Approved on 8/7/2018 DATE: 8/7/2018 REFERENCE **C-28770 LOG NAME: 19NEZBLUFFSAMENDMENT NO.. CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Amendment to Tax Abatement Agreement (City Secretary Contract No. 47487) with FW Bluff Apartments, L.P., to Amend the Terms of the Abatement to Allow the Abatement Beginning Date to Coincide with the First Year of the Compliance Auditing Term (COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an Amendment to Tax Abatement Agreement (City Secretary Contract No. 47487) with FW Bluff Apartments, L.P., to amend the Terms of the Abatement to allow the Abatement Beginning Date to coincide with the Compliance Auditing Term. DISCUSSION: On January 12, 2016, the Fort Worth City Council authorized approval of a five-year tax abatement with FW Bluff Land, L.P., by Mayor and Council Communication (M&C C-27599). The City entered into the Abatement Agreement (City Secretary Contract Nos. 47487 & 47487-CA1) with subsequent assignment to FW Bluff Apartments, L.P. (Owner). The Terms of the Agreement include a Compliance Auditing Term which starts January 1 of the year following the year in which a final certificate of occupancy is issued for the Required Improvements. The Abatement Beginning Date starts January 1 of the year following the year that the Compliance Auditing Term begins. The Compliance Auditing Term generally gives the Owner time to lease set aside units which would be required in the Agreement. However, the Owner opted to pay an annual sum equal to $200.00 for each rental residential unit located on the Premises to the Fort Worth Housing Finance Corporation (FWHFC) and has requested the Compliance Auditing Term and Abatement Beginning Date to coincide. This would change the start of the abatement and the annual payment to the FWHFC to 2018. All other terms of the contract will remain the same. This project is located in Council District 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations an estimated $1,219,575.00 in property taxes will be abated over the five year period from 2018-2022. This amount will be included in the City's five year financial forecast. TO Fund Department Account Project Program Activity Budget Reference # I Amount ID I I ID I I I Year I (Chartfield 2) http://apps.cfwnet.org/council_packet/mc review.asp?ID=26058&councildate=8/7/2018[08/08/2018 11:35:28 AM] M&C -Review i FROM Fund Department Account Project Program Activity Budget Reference # Amount ID I I ID I I I Year I (Chartfield 2) • Originating Department Head: Additional Information Contact: ATTACHMENTS 1295 Executed.1df Bluff Site Map for M -C.- f. Fernando Costa (6122) Aubrey Thagard (8187) Sarah Odle (7316) http://apps.cfwnet.org/council_packettmc_review.asp?ID=26058&councildate=8/7/2018[08/08/2018 11:35:28 AM]