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HomeMy WebLinkAboutContract 31375 CITY SECRETARYr-� CONTRACT NO_ ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agreement is made and entered into by and between KB Home Lone Star, L.P. ("Assignor") and Maria G. Juarez & David Juarez, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Ramey Avenue L.P ("Ramey") and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located 6028 McKaskle Drive — Fort Worth, Texas, Lot 18, Block 2, Ramey Place Addition ("Property") which is located in the Stop Six Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth February 25, 2003, City Secretary Contract Number 28696 ("Agreement"): B. Pursuant to that certain Special Warranty Deed dated as of May 23, 2004, recorded under Tarrant County Deed Records, Ramey conveyed the Property to Assignor and Assignor acquired title to the Property which is the subject of the Agreement: C. Section 5 of the Agreement permits Ramey to assign all of its rights under the Agreement to KB Home Lone Star, L.P. without obtaining the prior consent of the City Council. D. Ramey assigned the Agreement to KB Homes Assignor, such Agreement is dated February 25, 2003, City Secretary Contract Number 29078. E. Pursuant to that certain Special Warranty Deed dated as of May 10, 2004, recorded under Tarrant County Deed Records, Assignor conveyed the Property to Maria G. Juarez and David Juarez and Assignee acquired title to the real property which is the subject of the Agreement. F. 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: AGREEMENT 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. Assivnment. Assignor hereby ASSIGNS, TRANSFERS AND CONVEYS all rights,duties, obligations, title and interest under the Agreement to Assignee. 0_1-�13-05PCll 07 'HCVD 2. Acceptance. Assignee hereby accepts the Assignment 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 May 10, 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 supersede 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 I ASSIGNEE: Maria G Juarez and David Juarez 6028 McKaskle Drive Fort Worth, TX 76119 ASSIGNOR: KB Home Lone Star, L.P. 2711 LBJ Freeway#600 Dallas, TX 75075 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: KB Home Lone Star, L.P. k1 Name: gyAQ e .5-17.VAI Title: X1be=&7— ASSIGNEE: 77Z a,-ck Maria G Juarez av�hijarez r ' CITY OF FORT WORTH Dale �sseler Assistant City Manager ATTEST: City Secretary APPRO FORM AND LEGALITY: Assistant City Attorney M & C: C-19490 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE MEthe undersigned authority, on this day personally appeared J (issr(er A 1 n r Assistant City Manager of the CITY OF FORT WORTH, a municipal co ration, 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 Au day of 1200,4-5- Notary 200,4-5-Notary Public in and for ; KATHY F.DURHAM the State of Texas ' = MY COMMISSION EXPIRES January 24,2009 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared AW,Q d 60?&7 " of KB Home Lone Star L.P., a Texas limited partnership, 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 the I<B Home Lone Star, L.P. a Texas limited partnership. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 0��"i day of , 2004. 1(s TERRI K.ALLRED ttau" Pu lic in and for Notary Public thef Texas State of Texas Comm. Expires 05-20-2008 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Maria G Juarez known to me (orroved to me on the oath of — , or through '.rbr f S 6CA—d,, ) to be the person whose name is subscribed to the foregoing instrument and acknowledged to me that she executed the same for the Purposes and consideration therein expressed. GIVEN UNDER MY HAND AND SEAL OF OFFICE this /O day of 2004. cl Notary Public in and for MPP MICHAEL R. BUCKNER the State of Texasc NOTARY PUBLIC STATE OF TEXAS N'le OF +Py My Comm.Exp.06-22-2004 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared David Juarez, 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 MY HAND AND SEAL OF OFFICE this day of e7� , 2004. Notar ublic in and for to of Texas =e�M�P�4� TERRI K. ALLRED Notary Public ^. State of Texas Comm. Expires 05-20-2008 V�JFV�f:� 17�:Y:4 'r City of Fort Worth, Texas "agar and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/25/03 C-19490 1 05RAMEY 1 of 2 SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH RAMEY AVENUE, L.P., A TEXAS LIMITED PARTNERSHIP, AND KB HOME LONE STAR, L.P., A TEXAS LIMITED PARTNERSHIP, FOR THE RAMEY PLACE ADDITION IN THE STOP SIX NEIGHBORHOOD EMPOWERMENT ZONE RECOMMENDATION: It is recommended that the City Council.- 1. ouncil:1. Approve the application of Ramey Avenue, L.P. and KB Home Lone Star, L.P. for a five-year Municipal Property Tax Abatement for the Ramey Place Addition in the Stop Six Neighborhood Empowerment Zone (NEZ); and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Ramey Avenue, L.P., a Texas Limited Partnership, and KB Home Lone Star, L.P., are true and correct; and 3. Authorize the City Manager to enter into a Tax Abatement Agreement with Ramey Avenue, L.P., and KB Home Lone Star, L.P., in accordance with the NEZ Basic Incentives. DISCUSSION: Ramey Avenue, L.P., a Texas Limited Partnership, and KB Home Lone Star, L.P., a Texas Limited Partnership, are the owner/developer of the Ramey Place Addition located off the 5900 block of Ramey Avenue and Cass Street in the Stop Six NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ No. 1). Ramey Avenue, L.P. and KB Home Lone Star, L.P. applied for a five-year municipal property tax abatement under the NEZ Basic Incentives (M&C G-13208R dated June 5, 2001, M&C G- 13580 dated April 2, 2002, and M&C G-13662 dated July 23, 2002, as amended). The Housing Department has reviewed the application and certified that the property meets the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentives offers a five-year municipal property tax abatement of the increased value of improvements to the owner of any new home constructed within a NEZ. KB Home Lone Star, L.P. will invest $6,200,000 to construct sixty (60) single-family homes, not including the model home, in the Ramey Place Addition. The addresses, types and site plan of the proposed development are attached to this report. Upon execution of the tax abatement agreement, the total assessed values of each home in the Ramey Place Addition used for calculating municipal property tax will be frozen for a five-year period, starting on the date the home is sold to a homebuyer to be used as a primary residence, at the pre- improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, as follows: City of Fort Worth, Texas "C1.40yr And Council commu"ientio" DATE REFERENCE NUMBER LOG NAME PAGE 2/25/03 C-19490 05RAMEY 2 of 2 SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH RAMEY AVENUE, L.P., A TEXAS LIMITED PARTNERSHIP, AND KB HOME LONE STAR, L.P., A TEXAS LIMITED PARTNERSHIP, FOR THE RAMEY PLACE ADDITION IN THE STOP SIX NEIGHBORHOOD EMPOWERMENT ZONE • Pre-improvement TAD Value of Improvements -0- Pre-improvement Estimated Value of Land $2,082 per lot • Total Pre-improvement Estimated Value $2,082 per lot The municipal property tax on the improved value is estimated at $649 per house, per year, or a total of $194,625 over the five-year period. KB Home Lone Star, L.P. expects to complete construction on or before September 30, 2003, and sell sixty (60) homes to new owners. Upon the sale of each home by KB Home Lone Star, L.P., the new owner may assume relevant terms and conditions under this tax abatement agreement by entering into a new tax abatement agreement with the City, if the new owner meets all eligible criteria as stated in the NEZ Basic Incentives. The tax abatement agreement shall provide that the agreement may be assigned to KB Home Lone Star, L.P., KB Home Lone Star, L.P.'s affiliates or its first mortgagee, or to a homeowner who will use the required improvements as its primary residence or the homeowner's mortgagee, and any other assignment must be approved by the City Council. The Ramey Place Addition is located in COUNCIL DISTRICT 5. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that the above action will have no material effect on City funds. RR:k Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) Reid Rector 6140 Originating Department Head: Jerome Walker 7537 (from) APPROVED 2/25/03 Additional Information Contact: Jerome Walker 7537