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HomeMy WebLinkAboutContract 31376 CITY 02-23-05P01 : 07 RCVD CONTRACT NO Y�I�� ASSIGNMENT OF TAX ABATEMENT AGREEMENT (Ramey Avenue) This Assignment of Tax Abatement Agreement is made and entered into by and between KB Home Lone Star, L.P. ("Assignor") and Aisha T. Brown, ("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 Properly Located 2621 Divers Court, Fort Worth, Texas 76119 aka Lot 9, Block 4, of 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 -,.2 2 "13 1, ("Agreement"): B. Pursuant to that certain Special Warranty Deed dated as of 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. Ram y ass'gned the Agreement to KB Homes Assignor, such Agreement is dated City Secretary Contract Number 3 0 E. Pursuant to that certain Special Warranty Deed dated as of October.27, 2004 recorded under Tarrant County Deed Records, Assignor conveyed the Property to Aisha T. Brown 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 terns 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. � v CITY OF FORT WORTH �I� FisSefer Assistant City Manager ATTEST: f�� L:h' f. City Secretary I ROV AS TO FORM AND LEGALITY: Cynthia arcia Assistant City Attorney M & C: C-19490 �Ue .�✓U•.�fL� ��,Lo 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this�Uday of 20051/..5, v e' `vKATHY F.DURHAM Notary Public i and for =*: '= MY COMMISSION EXPIRES January 24,2009 the State of Texas '- ;r SR't 5 CIT :SLID STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared of KB Home Lone Star L.P., a Texas limited partnershi , known to me to be the erson 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 KB Home Lone Star, L.P. a Texas limited partnership. GIV N UNDER MY HAND AND SEAL OF OFFICE this day of © , 2004. *.. VALLI J. BAUGHMAN Notary Public and fo ' Notary Public,State of Texas the State of Texas My Commission Expires April 14, 2007 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Aisha T Brown known to me (or proved to me on the oath of or through bte-kSe-- ) 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 ,2-7 tL day of , 2004. I&Ad � ?o�„�.P„ MICHAEL R.BUCKNER Notary Public in and for NOTARY PUBLIC the State of Texas d STATE OF TEXAS �''�of t My t'amm.Exp.6-22-2008 City of Fort Worth, Texas ly Agor And Council Communication DATE REFERENCE NUMBER LOG NAMEPAGE 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: City of Fort Worth, Texas "Agar And Council Communication DATE REFERENCE NUMBER I 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- 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