HomeMy WebLinkAboutContract 29085 CITY SECRETARY
CONTRACT NO. 5
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agreement is made and entered into
by and between Ramey Avenue, L.P. ("Assignor") and KB Home Lone Star, L.P.
("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 6032 LUCAS
COURT, LOT 6, BLOCK 1, which is located in the Stop Six Neighborhood
Empowerment Zone, such Agreement dated May 15'2003 City Secretary Contract
Number 28738 ("Agreement").
B. Pursuant to that certain Special Warranty Deed, dated as of May 9, 2003, recorded
under Tarrant County Clerk's File No. D203167397, 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 %.e.a5 , 2003
("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 �, `ORTH, TEX.
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
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
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 Management
Company, Inc., its Gener artner
Name: r D. Sheffield
Title: resident
ASSIGNEE: KB Home Lone Star L.P.
Name: .+v ',,r2 C_jj ,PrsTJ,4tJ
Title: i rye ^�T
CITY OF FORT WORTH
Reid Rector
Assistant City Manager
ATTEST:
City S retary
contract Authorization
Date
APPROVE AS TO FORM AND LEGALITY:
Cynthia Gkrcia
Assistant City Attorney
M & C: C-19490
4
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 UN ER MY ,VIAND AND SEAL OF OFFICE this
Ll day of - �L(%+ 32003.
Notary Public in and for IJ
the State of Texas
000 KERRI BERKLEY
NOTARY PUBLIC
STATE OF TEXAS
My Conn.Exp.09-10-2003
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
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 AV_ SEAL OF OFFICE this
fi^ day of , 2003.
KATRINA A. �gURENCE
Notary Public in and for MY CO3,W5$KM W*ES
the State of Texas '` August 24, 2004
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City of Fort Worth, Texas
"Agar And council commu"icatio"
DATE REFERENCE NUMBER LOG NAME I 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-
• Pre-improvement Estimated Value of Land $2,082 per lot
• Total Pre-improvement Estimated Value $2,082 per lot
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City of Fort Worth, Texas
"agor And Council Communication
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
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 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