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HomeMy WebLinkAboutContract 29699 L CITY SECRETARY CONTRACT NO. ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agree is made and entered into by and between Courtney Homes, Inc. ("Assignor") and Said I. Muhammed etux Zakiyah Scott, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Courtney Homes, Inc. ("Courtney") and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located 5316 Fernander Drive, Fort Worth("Property") which is located in the Ridglea Village and Como Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth October 7, 2003 City Secretary Contract Number 29246 ("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 '�.-� recorded under Tarrant County Deed Records, Instrument Number Assignor conveyed the Property to Said I. Muhammed etux Zakiyah Scott and Assignee acquired title to the real property which is the subject of the Agreement. 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 -v '' 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. [FT.FFIC U! RECORD CRY WEIEPUY 03-22-04PO4 : 01 RCVD t 4. Release and Surrender of Assigmor. 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: Said 1. Muhammed etux Zakiyah Scott 3 fi VIM= " r a ve 76107 ASSIGNOR: Courtney Homes, Inc. 5203 Shadow Glen Drive Grapevine, Texas 76051 8. Successors. Except as herein otherwise provided, this Assignment will be binding upon and inure to the benefit of the parties, and their respectiverT�e- rs;-executers,..__. administrators, successors and assigns. 2 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: Courtney Homes, Inc. st e Name: Sherry Saylor Title: President ASSIGNEE:lurhasr ............................ Sipatures: Names: Said I. Muhammed etux Zakiyah Scott 3 CITY OF FORT WORTH Reid Rector Assistant City Manager ATTEST: 1 4y",".4) ai9 City cretary APPROV 1)AS TO FORM AND LEGALITY: Cynthia darcia Assistant City Attorney M& C oat 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 °"O nday of 2004. F•P�«»PU`•. . e ROSELLA BARNES Notary Public in and fore°� `f`= NOTARY PUBLIC the State of Texas *1i*= State of Texas � µ Pf Comm.Exp. 03-31-2005 NIUt% 5 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Sherry Saylor, President of Courtney Homes, Inc., 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 Courtney Homes, Inc. p� GIVEN UNDER MY HAND AND SEAL OF OFFICE this o�,c,.��'ay of 2004. Noforry Public in and for the State of Texas k„111 KAREN R.BURTON FAY CO4"1AISSION EXPIRES May 14,2005 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Said 1. Muhammed etux Zakiyah Scott, gti *known to me to be the persons whose names are subscribed to the foregoing instrument, and acknowledged to me that s/he executed the same for the purposes and consideration therein expressed, in the capacity therein stated. GIVEN UND R MY HAND AND SEAL OF OFFICE thisa y of 2004. Not Public in and for the State of Texas L142005 ON 6 City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 10/7/2003 DATE: Tuesday, October 07, 2003 LOG NAME: 05SAYLORTAAG1 REFERENCE NO.: C-19807 SUBJECT: Approval of Tax Abatement Agreement with Courtney Homes, Inc. for 7 Real Properties Located in the Ridglea Village/Como Neighborhood Empowerment Zone RECOMMENDATION: It is recommended that the City Council: 1. Approve a five-year Municipal Property Tax Abatement for 7 Real properties listed in Exhibit "A", owned by Courtney Homes, Inc. and located in the Ridglea Village/Como Neighborhood Empowerment Zone (NEZ); and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Courtney Homes, Inc. are true and correct; and 3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Courtney Homes, Inc. for each one of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: Courtney Homes, Inc. is the owner of the 7 properties listed in Exhibit "A". The real properties are located in the Ridglea Village/Como NEZ and Neighborhood Empowerment Reinvestment Zone No. 2. Courtney Homes, Inc. 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 Basic Incentives 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. Courtney Homes, Inc. will invest, at a minimum, $504,000 to construct 7 single-family homes in the Ridglea/Como NEZ. A 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, 2004, at the estimated pre- improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, for each one of the properties as follows: Pre-improvement TAD Value of Improvements $0 Pre-improvement Estimated Value of Land $2,500 Total Pre-improvement Estimated Value $2,500 The municipal property tax on the improved value of the homes is estimated at $484 per year on each property for a total of $16,940 over the five-year period for the 7 homes. However, this estimate may be Logname: 05SAYLORTAAGI Page 1 of 2 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 Courtney Homes, Inc.'s 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. 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 C. Walker (7537) Additional Information Contact: Jerome C. Walker (7537) Elizee Michel (7336) Logname: 05 SAYLORTAAG 1 Page 2 of 2