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Home My WebLink AboutContract 2972 I CITY SECRETARY, CONTRACT NO . -n--Q. - ASSIGNMENT OF TAX ABATEMENT AGPEEMUff 0 4 A 10 :5 3 R C V D This Assignment of Tax Abatement Agree is made and entered into by and between Ramey Avenue, L.P. ("Assignor") and KB Home Lone Star, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Assignor and the City of Fort Worth, Texas (the "City") are parties to that certain Tax Abatement Agreement ("Agreement") for Property Located 5901 MCKASKLE DRIVE, LOT 16, BLOCK 3, which is located in the Stop Six Neighborhood Empowerment Zone, such Agreement dated May 15' 2003 City Secretary Contract Number 28702 ("Agreement"). B. Pursuant to that certain Special Warranty Deed, dated as of July 18, 2003, recorded under Tarrant County Clerk's File No. 16-.,� a033aSa�09 Assignee acquired title to the real property which is the subject of the Agreement. C. Section 5 of the Agreement permits Assignor 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. In order to evidence the assignment referred to above, Assignor agrees to make the conveyance to Assignee as herein set forth. 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. 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 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 March 1 >Qon 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. 1 4. Release and Surrender of Assianor. 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 ASSIGNOR: Ramey Avenue, L.P. 9507 Granbury Highway Weatherford, TX 76087-5216 ASSIGNEE: KB Home Lone Star, L.P. 2711 LBJ Freeway#600 Dallas,TX 75075 2 �. f 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: Ramey Avenue, L.P. By: Sheffield Asset Manage t Company, Inc., its al art er Name: G D. S effield Title: P sident ASSIGNEE: KB Home Lone Star L.P. Name: Title CITY OF FORT WORTH A)U. r Reid Rector 11 Assistant City Manager Contract Authorization ATTEST: Gate I A k' City ecretary 3 APPROV D AST _O FORM AND LEGALITY: nth' Garcia Assistant City Attorney M & C: C-19490 Ile 4 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Reid Rector, 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 qday of 2002' Notary Public in and for the State of Texas f f HETTIE LANE My COMMISSION EXPIRES July 26,2007 Cal v �ITv C-;' Mp I" STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Gary D. Sheffield, President of Sheffield Asset Management Company, Inc., the General Partner of Ramey Avenue, 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 Ramey Avenue, L.P., a Texas limited partnership. GIVEN UNDER MY HA AND SEAL OF OFFICE this day of 200X.4 Notary Public in and for/ the State of Texas ►xrr MARIA JARAMILLO Notary Public ' * STATE OF TEXAS �� g MY Comm.Exp.03/31/2007 STATE OF TEXAS § COUNTY OF TAT § IAa Q't5 m BEFORE ME, the undersigned authority, on this day personally appeared bgv/,6 C'#ASrAAl, PkCs,,bg AT 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 Ramey Avenue, L.P., a Texas limited partnership. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of `�77�tc , 200)rc/ Not ublic in and f r the Sta of Texa a; ^�:* TERRI K.ALLRED Notary public,State of'I exas •� My Commission Expires ,A ;:'• May 20,2004 6 City of Fort Worth, Texas "elgor And council Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/25/03 C-19490 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. 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: • Pre-improvement TAD Value of Improvements -0- City of Fort Worth, Texas 4vel'yor And Council communication DATE REFERENCE NUMBER LOG NAMEPAGE 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 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. RRA Submitted for City Manager's FUND I 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