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HomeMy WebLinkAboutContract 31065 CITY �� CONTRACT SECRETARY NO.NO. ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agree is made and entered into by and between Village Homes,LP ("Assignor")and Jack H.Summerford and R.Jane Summerford,("Assignee") and the City of Fort Worth,("City") RECITALS A. Village Homes,LP("Village")and the City of Fort Worth,Texas(the"City")entered into that certain Tax Abatement Agreement("Agreement")for Property Located 720 Arch Adams Lane,Fort Worth,Texas 76107 also known as Lot 1R-17,Block 4,WILLIAM J. BAILEY ADDITION,an Addition to the City of Fort Worth,Tarrant County,Texas,according to the replat in Cabinet B,Slide 2672,Plat Records;Tarrant County,Texas("Property")which is located in the West 7'h and University Neighborhood Empowerment Zone,such Agreement approved by the City Council of Fort Worth March 2,2004 City Secretary Contract Number 29857("Agreement"): B. 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: C. Pursuant to that certain Special Warranty Deed dated as of November 19,2004,Assignor conveyed the Property to Jack H. Summerford and R. Jane Summerford and Assignee acquired title to the real property,which is the subject of the Agreement. AGREEMENT 1. Assignment. Assignor hereby ASSIGNS,TRANSFERS AND CONVEYS all rights,duties, obligations,title and interest under the Agreement to Assignee. 2. Acceptance. Assignee hereby accepts the Assigtunent 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 November 19,2004,2004 ("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. 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.m.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 ASSIGNEE: JACK H. SUMMERFORD and R.JANE SUMMERFORD 720 Arch Adams Lane Fort Worth,Texas 76107 ASSIGNOR: Village Homes,LP 6300 Ridglea PI##218 Fort Worth,Texas 76116 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:Village Homes,L.P. By: DH Management,Inc.,as General Partner By: U Michael Dike,President Name: Michael Dike A • resident erf and ane Su dack e d N R.Jane Summerford CITY OF WRT WO T I i � Assistant City Manager -m' ATTEST: n City Secretary 7ED AS TO FORM AND LEGALITY: CyntlVa Garcia Assistant City Attorney M&C: C-19987 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler, Acting 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. pi nece.wk-✓ G EN UNDERMY HAND AND SEAL OF OFFICE this 14 day of Ne�ern�er,2004. 4�� Notary Public in and for the State of Texas HETTIE LADE My COMMISS1014 EXPIRE& JuIy 26.2007 -SPP STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME,the undersigned authority,on this day personally appeared Dike, President of DH Management,Inc.,as General Partner for Village Homes,L.P.,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 Village Homes,LP GIVEN UNDER Y HAND AND SEAL OF OFFICE this day of November, 2004. emy J.N. SEWELLblic bli Nota b and for the State of Texas fJotary TE S�ATE OF TEXAS eanrn.5xp.0910912005 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Jack H. Summerford, known to me to be the person whose name is subscribed to the foregoing instrument,and R.C acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated. GIVEN UNDER AND SEAL OF OFFICE this 1 6fday of November,2004. Notary Public ' f the State of Texas emy =OF No STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared R. Jane Summerford, 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. GIVEN UNDER M OAND AND SEAL OF OFFICE this day of November,2004. J H, SEWELL Notary Publlc Notary Pu m for the State of Texas i t STATE OF TEXAS ?r `' a MyComm. Up.09/0912005 �F City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/2/2004 DATE: Tuesday, March 02, 2004 LOG NAME: 05VILLAGE HOMES REFERENCE NO.: C-19987 SUBJECT: Approval of Tax Abatement Agreement with Village Homes for Eleven Real Estate Properties Located in the West 7th Street/University Drive Neighborhood Empowerment Zone RECOMMENDATION: It is recommended that the City Council: 1. Approve a five-year Municipal Property Tax Abatement for each of eleven real properties listed in Exhibit "A", owned by Village Homes and located in the West 7th Street/University Drive Neighborhood Empowerment Zone (NEZ) for the development of townhomes; and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Village Homes are true and correct; and 3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Village Homes for each of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: Village Homes is the owner of the eleven properties listed in Exhibit "A". The real properties are located in the West 7th Street/University Drive NEZ and Neighborhood Empowerment Reinvestment Zone No. 14. Village Homes applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-13208R, M&C G-13580 and M&C G-13662, as amended). The Housing Department reviewed the application and certified that the properties meet the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Program offers a five-year municipal property tax abatement on the increased value of improvements to the qualified owner of any new home constructed within a NEZ. Village Homes will invest, at a minimum, $2,152,000 to construct eleven town homes in the West 7th Street/University Drive NEZ. In order for Village Homes to qualify for the tax abatement, Village Homes must construct the townhomes with a minimum of 2000 square feet that will appraise for $295,000 for 2 story town homes, and $320,000 for 3 story town homes. A more detailed description of the homes to be constructed is attached as Exhibit "B". The form of the Tax Abatement Agreement is attached as Exhibit ,C„ Upon execution of the agreement, the total assessed value of the home used for calculating municipal property tax will be frozen for a five-year period, starting on January 1, 2005, at the estimated pre- improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2004, for each one of the properties as follows: Pre-improvement TAD Value of Improvements $ 0 Pre-improvement Estimated Value of Land $10,909 Total Pre-improvement Estimated Value $10,909 Logname: 05VILLAGE HOMES ' The municipal property tax on the improved value of the homes is estimated at $1786 per year on each 2 story unit and $1937 per year on each 3 story unit for a total of $102,005 over the five-year period for the eleven homes. However, this estimate may be different from the actual tax abatement value, which will be calculated based on the TAD appraised value of the property. Upon the sale of the home, the agreement will be assigned to the new owner, so long as the new owner meets all eligible criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. The Tax Abatement Agreement provides that the agreement may be assigned without subsequent City Council approval to Village Homes first mortgagee, or to a homeowner who will use the required improvements as his/her primary residence or the homeowner's mortgagee. All other assignments must be approved by the City Council. The properties are located in COUNCIL DISTRICT 7. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by- Reid Rector (6140) Originating Department Head: Jerome Walker (7537) Additional Information Contact: Sarah Odle (7316) Logname: 05VILLAGE HOMES