HomeMy WebLinkAboutContract 30496 ' CITY SECRETARY
CONTRACT NO.
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agree is made and entered into by and
between Leonel Garcia and wife, Janie Garcia Development ("Assignor") and Frederick
R. Krause and wife Jennifer P. Krause, ("Assignee") and the City of Fort Worth,
("City")
RECITALS
A. Leonel Garcia and wife, Janie Garcia and the City of Fort Worth, Texas (the
"City") entered into that certain Tax Abatement Agreement ("Agreement") for
Property Located 1325 6th Avenue ("Property") which is located in the Ridglea
Village and Como Neighborhood Empowerment Zone, such Agreement approved
by the City Council of Fort Worth February 3, 2004 City Secretary Contract
Number 29548 ("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 Warranty Warranty Deed dated as of June 21, 2004,
.. ......... ..
recorded under Tarrant County Deed Records, Instrument Number
Assignor conveyed the Property to Frederick R. Krause
and wife, Jennifer P. Krause 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.
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3. Effective Date. The effective date of this Assignment is Jun -2L, 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.
i
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
ASSIGNEE:
1` �'- hick�. Krause anti Jennifer P. Krause
I Avenue
I North,Texas. 76104
ASSIGNOR:
Leonel Garcia and wife, Janie Garcia
5905 Tiffany Court
Arlington, Texas 76016
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.
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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: Lenonel Garcia and wife Janie Garcia
s gnature
a"(4a "�a/
IGNEE: Frederick R. Krau e and Jennifer P.r�Krause
Frederick R. Krause and Jennifer P. Krau ,
Name:
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CITY OF FORT WORTH
Assistant City Manager
ATTEST:
City Secretary
APPROVED TO FORM AND LEGALITY:
Assistant City Attorney
M & C: C- /995
STATE OF TEXAS §
COUNTY OF TARRANT §
RFORE PIE, the undersigned authority, on this day personally appeared
-!�)S-J rt , 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 _day of
12004,
V�
Notary Public in and for
the State of Texas
""" KAREN EDWARDS FISHER
c°a:� P'•`- Public,state of Texas
Notary Commission Expires
= MY Comm
LA A7 2008
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Leonel Garcia
and wife, Janie Garcia known to me to be the person whose name is subscribed to the
foregoing instnunent, 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. nn
IVEN UNDER MY HAND AND SEAL OF OFFICE this C C day of
' 2004.
Notary Pub ' and for DONNA J. DUNAWAY
the State of Te °�° NOTARY PUBLIC
of +'y STATE OF TEXAS
MY Comm.Exp, 11-04.2007
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
' Frederick R. Krause and Jennifer P. Krause, 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.
GIVEN rDER MY HAND AND SEAL OF OFFICE this;�L?day of
' 2004.
� DONNA J. DUNAWAY
taryo ;�7
ublic in anr e NOTARY PUBLIC
the State of Texas ,, STATE OF TEXAS
''•of�+ My Comm.EXP.11-04-2007
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/3/2004
DATE: Tuesday, February 03, 2004
LOG NAME: 05GARCIA REFERENCE NO.: C-19955
SUBJECT:
Approval of Tax Abatement Agreement with Leonel Garcia and Janie Garcia, for a Property
Located in the Magnolia Village Neighborhood Empowerment Zone at 1325 6th Avenue
RECOMMENDATION:
It is recommended that the City Council:
1. Approve a five-year Municipal Property Tax Abatement for a property located at 1325 6th Avenue
owned by Leonel Garcia and Janie Garcia in the Magnolia Village Neighborhood Empowerment Zone
(NEZ); and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
Agreement) with Leonel Garcia and Janie Garcia are true and correct; and
3. Authorize the City Manager to enter into a Tax Abatement Agreement with Leonel Garcia and Janie
Garcia for 1325 6th Avenue in the Magnolia Village NEZ in accordance with the NEZ Tax Abatement Policy
and Basic Incentives.
DISCUSSION:
Leonel Garcia and Janie Garcia are the owners of the property at 1325 6th Avenue (Johnson Subdivision,
Block 1, Lot 26). The property is located in the Magnolia Village NEZ and Neighborhood Empowerment
Reinvestment Zone (NERZ No. 5). Leonel Garcia and Janie Garcia applied for a five-year municipal
property tax abatement under the NEZ Basic Incentives (M&C G-13208R, M&C G-13580, M&C G-13662,
and M&C C-19551, as amended). The Housing Department 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 on the increased value of improvements to
the qualified owner of any new home constructed within a NEZ.
Leonel Garcia and Janie Garcia will invest $100,000.00 to construct a single-family home in the Magnolia
Village NEZ. The property is also located in the Fairmount Southside Historic District. The Historic and
Cultural Landmarks Commission approved the construction plan at its meeting on November 10, 2003. A
description of the home to be constructed is attached as Exhibit "A." The Agreement is attached as Exhibit
11B
Upon execution of the Agreement, the total assessed value of improvements used for calculating municipal
property tax will be frozen for five years at the most recent pre-improvement value as defined by the Tarrant
Appraisal District (TAD). The abatement only applies to the improvement value, not to the land. The term
of the abatement shall begin on January 1 of the year following the calendar year in which the required
improvement was completed, and unless sooner terminated, shall end on December 31 immediately
preceding the fifth anniversary of the beginning date. In January 2004, TAD estimated the pre-improvement
value of the property as follows:
Logname: 05GARCIA Pagel of 2
Pre-improvement TAD Value of Improvements $ 0.00
Pre-improvement Estimated Value of Land $8,000.00
Total Pre-improvement Estimated Value $8,000.00
The municipal property tax on the improved value of the home after its construction is estimated at $605.50
per year, for a total of$3,027.50 over the five year period. However, this estimate may be different from the
actual tax abatement value which will be calculated based on the Tarrant Appraisal District appraised value
of the property.
The tax abatement agreement provides that the agreement may be assigned without subsequent City
Council approval to Leonel Garcia and Janie Garcia'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.
This property is located in COUNCIL DISTRICT 9.
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 Walker (7537)
Additional Information Contact: Jerome Walker (7537)
Sarah Odle (7316)
Logname: 05GARCIA Page 2 of 2