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HomeMy WebLinkAboutContract 36899-CA2 CITY SECRET/ CONTRACTNO. LIAR 14 2016 CITY OF:FORT�VORTII ASSIGNMENT OF TAX ABATEMENT AGREEMENT CITY SECRUARY This Assignment of Tax Abatement Agreement is made and entered into by and between CTMGT Waterview Estates FL-1, LLC, ("CTMGT"), ("Assignor") and Impression Homes, L.L.C., ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Waterview Estates, L.P., Pars Investment, Inc., General Partner("Waterview") and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located at 5612 Thunder Bay Drive; Lot 13; Block 2; Waterfront at Enchanted Bay; an Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat recorded and filed in Cabinet A; Slide No. 11723, Plat Records, Tarrant County, Texas ("Property") which is located in the Lake Arlington Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth November 6, 2007, City Secretary Contract Number 36899 ("Agreement"): B. Section 5 of the Agreement permits Waterview to assign all of its rights under the Agreement to CTMGT, without obtaining the prior consent of the City Council: C. Waterview assigned the Agreement to CTMGT, Assignor, such Agreement is dated September 27, 2013, City Secretary Contract Number 36899-CAL D. Pursuant to that certain Special Warranty Deed dated as of Januaryc*42014 recorded under Tarrant County Deed Records, Assignor conveyed the Property to Impression Homes, L.L.C. and Assignee acquired title to the real property, which is the subject of the Agreement. E. 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. 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 January&Jk20l& ("Effective Date"). All rights, duties and obligations under the Agreement arising, accruing or relating to the period before the Effective Date are allocated to Assig UFFICIWaEC®R® Assignment of Tax Abatement Contract#36899-CAI from S6ETARY CTMGT Waterview Estates FL-1, LLC to Impression Homes, 1 L FT.WO,RTHITX 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 Neighborhood Services Department(NEZ) 1000 Throckmorton Fort Worth, Texas 76102 - ASSIGNOR: ASSIGNEE: CTMGT Waterview Estates,FL-1, LLC Impression Homes,L.L.C. 3901 Airport Freeway, Suite 200 P.O. Box 92726 Bedford, TX 76021 Southlake, Texas 76092 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. Assignment of Tax Abatement Contract#36899-CA1 ftom CTMGT Waterview Estates FL-1, LLC to Impression Homes, LLC 2 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. CITY OFF FORT 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 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 �N�kday of 201/. TRIKINYA L. JOHNSON Notary P 11C In _ Notary Public,81019 of Texas y Or �i ?�- My Commission Expires "'•';' }�' April 17, 2018 the State of Texas --„ ®� FO��._ AATTT: Mary K se ty ecretary APPROVED AS TO FORM AND LEG I1` a Melinda Ramos Sr. Assistant City Attorney M & C: C-22514 OFFMAL 2,ECOR® (W)r 3N,P R I l{ARV Assignment of Tax Abatement Contract#36899-CA1 from CTMGT Waterview Estates FL-1, LLC to Impression Homes, LLC 3 ASSIGNOR:CTMGT Waterview states FL-1,LLC Name: Mehrdad Moavedi Title: Managing Member STATE OF TEXAS § COUNTY OF NT BEFORE ME,tAhe un ersigned authority,on this day personally appeared Mehrdad Moayedi, Managing Member of CTMGT Waterview Estates FL-1, L.L.C. 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 CTMGT Waterview Estates FL-1,L.L.C. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2016. °" P LAURA L.WAYLAND Notary Public in and for Notary ID# 1656942 the State of Texas My Commission Expires y July 14,2016 SES FE OF tEi'' ASSIGNEE:Impression Homes,L.L.C. - Name: Bruce Heikkinen Title: Managing Member STATE OF TEXAS § COUNTY OF TARRA § BEFORE ME, the ersigned authority, on this day personally appeared Bruce Heikkinen, Managing Member f Impression Homes,L.L.C. known to me to be the person whose name is subscribed to t foregoing instrument,and acknowledged to me that he executed the same for the purposes d consideration therein expressed,in the capacity therein stated. GIV UNDER MY HAND AND SEAL OF OFFICE this ^ day of ,2016. Notar,4 Public in and for the to of Texas Assignment of Tax Abatement Contract#36899-CA1 from CTMGT Waterview Estates FL-1,LLC to Impression Homes,LLC 4 ASSIGNOR: CTMGT Waterview Estates FL-1, LLC Name: Mehrdad Moayedi Title: Mana ing Member STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersi ed authority, on this day personally appeared Mehrdad Moayedi, Managing Member of TMGT Waterview Estates FL-1, L.L.C. known to me to be the person whose nam s subscribed to the foregoing instrument, and acknowledged to me that he executed the ame for the purposes and consideration therein expressed, in the capacity therein stated d as the act and deed of CTMGT Waterview Estates FL-1, L.L.C. G EN UNDER MY HAND AND SEAL OF OFFICE this day of 2016. pa ry Public in and for t State of Texas ASSI E: I ressi n mes, L.L.C. Name: Bruce Heikkinen Title: Manning Member STATE OF TEXAS § _ COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Bruce Heikkinen, Managing Member of Impression Homes, L.L.C. 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. GI N UNDER MY HAND AND SEAL OF OFFICE this day of 2016. Notary Public in and for G KRI KE18 the State of Texas )MY ID 0 12313828 COM E*AM 19,2017 _ Assignment of Tax Abatement Contract#36899-CAI from CTMGT Waterview Estates FL-1, LLC to Impression Homes, LLC 4 M&C Review Page 1 of 3 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA FOR » COUNCIL ACTION: Approved As Amended on 11/6/2007 DATE: 11/6/2007 REFERENCE C-22514 LOG NAME: 05ENCHANTEDBAY NO.. NON- PUBLIC CODE: C TYPE: CONSENT HEARING: NO SUBJECT: Authorize Execution of a Five Year Tax Abatement Agreement with Waterview Estates, L.P., a Texas Limited Partnership, and Woodhaven Homes, L.P., a Texas Limited Partnership, Located in the Lake Arlington Neighborhood Empowerment Zone RECOMMENDATION: It is recommended that the City Council: 1. Authorize the City Manager to enter into a five year Tax Abatement Agreement with Waterview Estates, L.P., a Texas Limited Partnership, and Woodhaven Homes, L.P., a Texas Limited Partnership, located in the Lake Arlington Neighborhood Empowerment Zone; and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Waterview Estates, L.P., and Woodhaven Homes, L.P., are true and correct. DISCUSSION: Waterview Estates, L.P., and Woodhaven Homes, L.P., are the owners/developers of the 118 properties listed in Exhibit "A". This real property is located in the Lake Arlington NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ No. 16). Waterview Estates, L.P. and Woodhaven Homes, L.P. have applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-14947), as amended. The NEZ Program offers a five-year municipal property tax abatement on the increased value of improvements to the qualified owner of any new construction within a NEZ. The Housing Department has reviewed the application and certified that the property meets the eligibility criteria to receive NEZ municipal property tax abatement. Waterview Estates, L.P., and Woodhaven Homes, L.P., will invest a minimum of$15,200,000.00 to construct 118 single-family homes in the Lake Arlington NEZ. In order for Woodhaven Homes, L.P., or any other developer or builder approved by the City Manager or his designee to qualify for the tax abatement, they must construct homes with a minimum of 1200 square feet of living space with at least three bedrooms, one and one-half baths and 70% mortared brick which will appraise for a minimum of$100,000.00. A more detailed description of the homes to be constructed and sample drawings are attached as Exhibit"B". The Agreement is attached as Exhibit"C". http://apps.cfwnet.org/council_packet/mc_review.asp?ID=8145&councildate=11/6/2007 3/15/2016 M&C Review Page 2 of 3 Upon execution of the tax abatement agreement, the total assessed value of each home 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, 2007, as follows: Pre-improvement TAD Value of Improvements $ 0.00 Pre-improvement Estimated Value of Land $2,025.00 Total Pre-improvement Estimated Value $ 2025.00 The municipal property tax on the improved value is estimated at $550.00 per house, per year, for a total of $2,750.00 over the five-year period for each house. 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. The tax abatement agreement provides that the agreement may be assigned without subsequent City Council approval to Woodhaven Homes, L.P., or another builder approved by the City Manager or his designee or the developer's first mortgage, or to a homebuyer who will use the required improvements as his/her primary residence, or to the homeowner's mortgagee. All other assignments must be approved by City Council. The agreement also provides that the failure of the owner to send the City notification of the sale of the required improvements and the executed assignment of the agreement with the new owner within 30 days of the transfer of ownership of the required improvements shall result in the automatic termination of the Agreement. This property is located in COUNCIL DISTRICT 5. 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: Dale Fisseler (6140) Originating Department Head: Jerome Walker (7537) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS Continued Exhibit B for M&C.Pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=8145&councildate=11/6/2007 3/15/2016 M&C Review Page 3 of 3 Exhibit A for M&C.xls Exhibit B for M&C.doc Final TA Agreement for M&C.doc Location Map for M&C.pdf http://apps.cfwnet.org/council_packet/mc_review.asp?ID=8145&councildate=11/6/2007 3/15/2016