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CONTRACT NO. P
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agree is made and entered into by
and between Village Homes, LP ("Assignor") and Charles P. Pate ("Assignee") and
the City of Fort Worth, ("City")
RECITALS
A. Village Homes, LP ("Village") and the City of Fort Worth, Texas (the "City")
entered into that certain Tax Abatement Agreement ("Agreement") for
Property Located at 3305 West 6th Street, Fort Worth, Texas 76107
("Property") which is located in the West 7t and University Neighborhood
Empowerment Zone, such Agreement approved by the City Council of Fort
Worth March 2, 2005 City Secretary Contract Number 29861
("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 3,/4s-Assignor
conveyed the Property to Charles P. Pate , 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 �1/,Yl-r("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.
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:
Charles P. Pate
3305 West 6th Street, Fort Worth, Texas 76107
ASSIGNOR:
Village Homes, LP
6300 Ridglea PI #218
Fort Worth, Texas 76116
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.
IQI e,.L•E�-1..
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: Village Homes, LP
(
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Name: Michael Dike
Title: President
ASSIGN E:
Charles P. Pate
CITY FORT W THS
Dale Fisseler
Assistant City Manager
ATTEST:
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City Secretary
APPR- ED S TO FORM AND LEGALITY:
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Assistant City Attorney
M & C: C-19987
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
Dale Fisseler, 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
2005.
f KATHY F.DURHAM
Notary Publi in and for _. MY COMMISSION EXPIRES
the State of Texas r �'
4 CITY
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Michael
Dike, President of Village Homes, LP, 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 Village Homes, LP
GIVEN UNDER MY HAND AND SEAL OF OFFICE this / 7 day of
92005.
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Notary Public in �nd for RY
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the State of Texas
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Charles
P. Pate, 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 UNDER MY HAND AND SEAL OF OFFICE this day of
—52005.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/212004
DATE: Tuesday, March 02, 2004
LOG NAME: 05VILLAGE HOMES REFERENCE NO.: C-19987
SUBJECT:
Approval of Tax Abatement Agreement with Village Homes for Eleven Real Estate Properties
Located in the West 7th Street/University Drive Neighborhood Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Approve a five-year Municipal Property Tax Abatement for each of eleven real properties listed in
Exhibit "A", owned by Village Homes and located in the West 7th Street/University Drive Neighborhood
Empowerment Zone (NEZ) for the development of townhomes; and
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Village
Homes are true and correct; and
3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Village Homes for
each of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic
Incentives.
DISCUSSION:
Village Homes is the owner of the eleven properties listed in Exhibit"A". The real properties are located in
the West 7th StreetfUniversity Drive NEZ and Neighborhood Empowerment Reinvestment Zone No.
14. Village Homes 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 Program offers a five-year municipal properly tax
abatement on the increased value of improvements to the qualified owner of any new home constructed
within a NEZ. Village Homes will invest, at a minimum, $2,152,000 to construct eleven town homes in the
West 7th Street/University Drive NEZ. In order for Village Homes to qualify for the tax abatement, Village
Homes must construct the townhomes with a minimum of 2000 square feet that will appraise for $295,000
for 2 story town homes, and $320,000 for 3 story town homes. A more detailed description of the homes to
be constructed is attached as Exhibit "B". The form of the Tax Abatement Agreement is attached as Exhibit
lice
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, 2005, at the estimated pre-
improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2004, for each one of
the properties as follows:
Pre-improvement TAD Value of Improvements $ 0
Pre-improvement Estimated Value of Land $10,909
Total Pre-improvement Estimated Value $10,909
Logname: 05VILLAGE HOMES _
The municipal property tax on the improved value of the homes is estimated at $1786 per year on each 2
story unit and $1937 per year on each 3 story unit for a total of$102,005 over the five-year period for the
eleven homes. 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. 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 Village Homes 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.
The properties are located in COUNCIL DISTRICT 7.
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 b Reid Rector (6140)
Originating Department Head: Jerome Walker(7537)
Additional Information Contact: Sarah Odle (7316)
Losnarne: 05V1T.T.AC'T1P.T40MPQ