HomeMy WebLinkAboutContract 45196-CA2 ary=MARY
COWRACT NO._�hErAt�74-
CONSENT TO ASSIGNMENT OF
TAX ABAJ'EMENT AGREEMENT
(CITY SECRETARY CONTRACT NO. 451.9+ -CAI)l
This CONSENT TO ASSIGNMENT 0 F CITY SECRETARY C 0 N T R A C T
N 0. 45196-CAI ("Consent") is made and entered into by and between the CITY OF FORT
WORTH ("City"), a horne rule municipal corporation organized under the laws of the State of
Texas'. and CCLG Partners, LLC ("Assignor or Owner"), and 301 West Northside, LLC
("Assignee").
The following introductory provisions are true and correct and from the basis of this
Consent-.
A. On or about September 24, 2013, the City and Texas Reverse Exchange Holding
Company, LLC entered into that certain Tax Abatement Agreement on file in the City
Secretary's Office as City Secretary Contract No. 45196 (the "Agreement"). Under the
Agreement, Texas Reverse Exchange 1--lolding Company, LLC agreed to construct a strip mall
for retail and restaurant use (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 rnore specifically set forth in the Agreement. The Abatement was
granted pursuant to the City's Neighborhood Einpowerinent one Policy ("NEZ Policy").
B. Section 5 of the agreement allows an assigi-ianent to CCLG Partners or an Affiliate
without the prior consent of the City Council.
C. On September 24, 2013, CCLCJ Partners, LLC, as managing agent for Texas Reverse
Exchange I folding Company, LLC, sold its interest in the Land and Required Improvements and
assigned all right, title and interest in the Agreement to CCLG Partners, LLC. City Secretary
Contract No. 45196-CAL
D. 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 lierein
contained and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the pat-ties hereby agree as follows:
I The City hereby consents to an assignment by Assignor to Assignee of all right, title and
t�
interest granted to Assignor by the Agreement, effective as of October 8, 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 9 451 )6*WjAL RECORD
from CCLG Partners, LLC to 301 West Northside' Ll C y
- -CRY SECRETARY
Approved by M&C C-26479 on September 24, 201 1 r
RECENED MAR 14 2014, 1 �7. WORTNj TX
..........................................
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 (1) 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 tinder the
Agreement that are an addition to or greater than those of the Owner thereunder.
5. Ail 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 FOR'"I' 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 FOIST 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 saki CITY OF FORT WORTH, TEXAS, a
municipal corporation, that lie 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
2014.
—VA
DA.M.m:
Notar/Public in and for RFILIWER
M Y COMMISSION EXPIRE
the State of Texas
Foblliajy2,2019
Consent to Assignment of'Fax Abatement Agreement # 45196-CA I
from CCLG Partners, LLC to 301 West Northside, LLC
Approved by M C-26479 on September 24, 2013
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APPROVED AS TO FORM AND LEGALITY:
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-26479
ASSIGNOR: C'CLG Partners, LLC by
Site Pro y Company, LLC, its Director
Nan-e: avid D. Draper, Director
ASSIGNEE: 301 West Northside, LLC
Nan c: Dav' D. Draper, Managing Partner
STATE OF TEXAS §
C:O(.TNTY OF TARRANT
BEI,'ORE ME, th.e Undersigned authority, on this day personally appeared David D. Draper,
Director of Site Property Company, Director for (..,CI:,G Partners, LLC, Known to nee 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.
GIVEN UNDER MY HAND ANl:_) �r��' `l� �fy/,,,,,(-)FFJCE this day of
r J r.. G vC''�•• r
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Notary Public in and for — - �feor 1%�P
the State of Texas
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Consent to Assignment of Tax Abatement Agreement 4 451,96 PffICIAL RECORD
from C'CLG Partners, LLC to 301 West Northside, LLC CITY SECRETARY
Approved by M&C C-26479 on September 24, 2013 FT. WORTH,TX
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared David D. Draper,
Managing Partner of 301 West Northside, LLC, 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 exp►•cssed, in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
Mw" 2014.
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\ky poe�.'
Notary Public in and for
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the State of`Texas
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74-20
Consent to Assignment of-I'ax Abatement Agreement 9 45196-CA I
from CCLG Partners., LLC to 301 West Northside, LLC
Approved by M&(-' C-26479 on September 24, 2013
4
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COUNCIL ACTION: Approved can 9/2412013
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DATE: 9/24/2013 REFERENCE C-26479 LOG NAME: 17NEZ301 WNORTHSIDE
NO.:
CODE: C TYPE: NON- PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Five Year Tax Abatement Agreement with Texas Reverse Exchange Holding
Company, LLC, a Texas Limited Liability Company, as Exchange Accommodation
Titleholder for CCLG Partners, LLC, a. Texas Limited Liability Company„ for the
Construction of a Strip Mall for Retail and Restaurant Use at 301 W. Northside Drive and
1215 N. Houston Street in the Northside Neighborhood Empowerment Zone (COUNCIL
DISTRICT 2)
RECOMMENDATION:
It is recommended that the City Council authorize a five-year Tax Abatement Agreement with Texas
Reverse Exchange Holding Company, LLC„ a Texas Limited Liability Company, as Exchange
Accomodation Titleholder for CCLG Partners, LLC, a Texas Limited Liability Company, for the
Construction of a Strip Mall for Retail and Restaurant Use at 301 W. Northside Drive and 1215 N.
Houston Street in the Northside Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment Zone Tax Abatement Policy and 'Basic Incentives.
DISCUSSION:
Texas Reverse Exchange Holding Company, LLC, a Texas Limited Liability Company, as Exchange
Accomodation Titleholder for CCLG Partners, LLC, a Texas Limited Liability Company (Property
Owner), is the owner of the property described as Lots 1'6, 17 and 18, Block 60, North Fort Worth
Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded
in `volume 63, Page 147, Deed Records, Tarrant County; Save and Except that a portion of Lot 16,
Block 60 was conveyed to the City of Fort Worth by Deed recorded in Volume 3094, Page 47, Deed
Records of Tarrant County, Texas, 301 W. Northside Drive and 1215 N. Houston Street, Fort Worth,
Texas. The property is located within the Northside Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$675„000.00 to build a 4200 square foot
strip mall with three spaces for restaurant and retail development (Project). The Housing and
Economic Development 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.
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 2014. At this time,
Tarrant Appraisal District has the improvements on the property valued in the amount of
$1,000.00. The owner has demolished the existing building on the property so the pre-improved
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$5,771.25 per year for a total amount of$28,856.25 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.
In the event of a sale of this property, the Tax Abatement Agreement may be assigned to an affiliate
Page 1 of 2
without the consent of the City Councilor to a new owner with City Council approval,, only if 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 2.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
TO Fund/AccounVCenters FROM Fund/Account/Centers;
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Cynthia Garcia (8187)
Robert Sturns (8003)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
301 W Northside-1 215 N Houston Map.pdf
Elevation and Site P'lan.pd
Page 2 of 2
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