HomeMy WebLinkAboutContract 36676-CA1 CITY SECRETARY
CONTRACT NO.,
CONSENT TO ASSIGNMENT OF
TAX ABATEMENT AGREEMENT
(CITY SECRETARY CONTRACT NO. 36676)
This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT
NO. 36676 ("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 H.A. SHABAN ("Assignor or Owner"), and SHABAN REAL ESTATE
HOLDINGS,LLC ("Assignee").
The following introductory provisions are true and correct and from the basis of this
Consent:
A. On or about December 11, 2007, the City and H.A. Shaban entered into that certain Tax
Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No.
36676 (the "Agreement"). Under the Agreement, H.A. Shaban agreed to construct a retail
shopping center (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. The Required Improvements were completed as required by the Agreement and the
Abatement is currently in effect pursuant to and in accordance with the Agreement.
C. 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. The Agreement stipulates that the
Agreement may not be assigned to a third party purchaser of the Required Improvements without
the consent of the City Council.
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:
l. 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 July 16, 2013, ("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.
Consent to Assignment of Tax Abatement Agreement#36 .9FFICIAL RECORD
R E C E I V E 0 !1€rye from H.A. Shahan to Shahan Real Estate Holdings, LLC CITY SECRETARY
Approved by M&C C-26335 on July 16, 2013 FT.WORTH, TX
1 i
3. Assignee understand 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 Section 2 of the Agreement (ii) any Event of Default
set forth in Section 4 of the Agreement.
4. Nothing in this Consent shall be deemed to grant Assignee any rights under the
Agreement that are additional 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.
C1--- -- ---T WURTH
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 day of
2013.,
Votary Public in and for o a.P'. EVONIA DANIELS
the State of Texas TO"4�� 3N �_ Notary Public,state f
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Consent to Assignment of Tax Abatement Agreement#36676
from H.A. Shaban to Shaban Real Estate Holdings, LLC. CITY SECRETARY
Approved by M&C C-26335 on July 16, 2013 FT.WORTH, TX
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APPROVED AS TO FORM AND LEGALITY:
% '�N I 0�[JAIO� �
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-26335
ASSIGNOR: H.A. Shaban
ASSIGNEE: Shaban Real Estate Holdi , LLC
l
Name'— H.A. Shaban, Director
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared H.A. Shaban, 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.
IVEN D MY HAND AND SEAL OF OFFICE this of
13.
NotaTy-15ublic in and
the State of Texas
SARMJ.OME
i* y` MY COMMISSION EXPIRES
, November 5,2015
Consent to Assignment of Tax Abatement Agreement#36676
from H.A. Shaban to Shaban Real Estate Holdings, LLC.
Approved by M&C C-26335 on July 16, 2013
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Official site of the City of Fort Worth,Texas
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COUNCIL ACTION: Approved on 7/1612013
DATE: 7/16/2013 REFERENCE NO.: **C-26335 LOG NAME: 17NEZSHABAN
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Consent to Assignment of Tax Abatement Agreement, City Secretary Contract
No. 36676, by H.A. Shaban for the Construction of a Retail Shopping Center Located at
5923 Donnelly Avenue in the Ridglea Village/Como Neighborhood Empowerment Zone to
Shaban Real Estate Holdings, LLC, and Authorize Execution of Related Assignment
Agreement(COUNCIL DISTRICT 7)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize consent to the assignment by H.A. Shaban of his or her rights, duties and obligations
under his or her Tax Abatement Agreement, City Secretary Contract No. 36676, for the construction
of a retail shopping center located at 5923 Donnelly Avenue in the Ridglea Village/Como
Neighborhood Empowerment Zone to Shaban Real Estate Holdings, LLC; and
2. Authorize the City Manager to execute an Assignment Agreement with Shaban Real Estate
Holdings, LLC.
DISCUSSION:
On December 11, 2007, (M&C C-22580 and City Secretary Contract No. 36676)the City Council
granted the execution of a Tax Abatement Agreement with H.A. Shaban for the property located at
5923 Donnelly Avenue in the Ridglea Village/Como Neighborhood Empowerment Zone (NEZ)for the
construction of a retail shopping center which was completed, as specified, in the Abatement
Agreement.
The Tax Abatement Agreement prohibits H.A. Shaban from assigning his or her rights under the
Agreement to a third party unless the City Council approves the assignment. Ownership has
changed to the affiliate of Shaban Real Estate Holdings, LLC, owned by H.A. Shaban.
Staff recommends approval of the assignment.
The property is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO F u nd/Accou nt/C enters FROM Fund/Account/Centers
Submitted for City Manager's Office by: Fernando Costa (6122)
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Originating Department Head: Cynthia Garcia (8187)
Robert Sturns (8003)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
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