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HomeMy WebLinkAboutContract 33239 CITY SECRETARY CONTRACT NO. ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agreement is made and entered into by and between United Riverside Rebuilding Corporation ("Assignor") and Core and Annette Telford, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. United Riverside Rebuilding Corporation and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located at 2928 Ennis Avenue ("Property") which is located in the Riverside Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth September 23, 2003, City Secretary Contract Number 29202 ("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 November 30, 2005, recorded under Tarrant County Deed Records, Assignor conveyed the Property to Core and Annette Telford 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 November 30, 2005("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. in. 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 r equired u nder t he A greement. T he a ddresses s et f orth b elow s upercede 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: 0pre and A net Tej#" 29-28.Exams„A.vxue Fort Wbith, Texas 76111 ASSIGNOR: United Riverside Rebuilding Corporation 201 S. Sylvania Fort Worth, Texas 76111 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. ASSIGN gUni ' er ide R uilding Corporation Si aName: elGra Title: Eeecutivebirector ASSIGNEE: Core and Annette Telfor Signature- Name: i ature•Name: Core Telford Si atur . Name. Jtte'�4Mfbre tiJ ` J 3 CITY OF FORT WORTH Dale Fisseler Assistant City Manager ATTEST: City Secretary APPROVED AS 0 FORM AND LEGALITY: 77 9 1 Cynthia Garcia Assistant City Attorney M & C: C- P9 -7 2— "Cl PCC,) - Sj 4 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. 70 GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2006. ------------ E-(pqPq JONI R JACOBS Notary ublic in and TARY PUBLIC the State of Texas A, State of Texas f Comm. Exp. 05-27-2007 5 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Kelly Allen Gray, Executive Director of United Riverside Rebuilding Corporation, 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 United Riverside Rebuilding Corporation GIVEN UNDER MY HAND AND SEAL OF OFFICE this :, day of 2005. cke'�— Notary Public in and for .� the State of Texas i = "•" ELENA ANN CORRALES is=_�' Notary Public,State of Texas f My commission Exp.05-28-2009 5 28 2009 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Core and Annette Telford, purchaser, 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 34)day of ' 2005. Notary Public in and for the State of Texas } ELENA ANN CORRALES Notary Public,State of Texas • ; •�My Commission Exp.05.28-2009 4 ,1TV City of Fort Worth, Texas 41 .10600 And Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 9/23/03 C-19762 05RIVERSTA 1 of 3 SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH THE UNITED RIVERSIDE REBUILDING CORPORATION FOR PROPERTIES LOCATED IN THE RIVERSIDE NEIGHBORHOOD EMPOWERMENT ZONE AT 613 SOUTH JUDKINS STREET, 120 PARADISE STREET, AND 2928 ENNIS AVENUE RECOMMENDATION: It is recommended that the City Council 1. Approve the application of United Riverside Rebuilding Corporation (URRC), owner of properties located at 613 South Judkins Street, 120 Paradise Street, and 2928 Ennis Avenue for a five-year Municipal Property Tax Abatement for the above mentioned property in the Riverside Neighborhood Empowerment Zone (NEZ); and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the Agreement) with the URRC are true and correct; and 3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with the URRC for each property in the Riverside NEZ in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: URRC is the owner of the property at 613 South Judkins Street (Riverside Addition, Block 81, Lot 4), 120 Paradise Street (Riverside Addition, Block 1, Lot 11 R), and 2928 Ennis Avenue (Adams Heirs Sub- division, Lot A-3). The properties are located in the Riverside NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ No. 11). URRC applied for a five-year municipal property tax abatement under the NEZ Basic Incentives (M&C G-13208R, M&C G-13580, and M&C G-13662, 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 on the increased value of improvements to the qualified owner of any new home constructed within a NEZ. URRC will invest $208,600.00 to construct three single-family homes in the Riverside NEZ. A description of the homes to be constructed is attached as Exhibit A. The form of the agreement is attached as Exhibit B. 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 pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, as follows: City of Fort Worth, Texas MDayor and Council communienflon DATE REFERENCE NUMBER LOG NAME PAGE 9/23/03 C-19762 05RIVERSTA 2 of 3 SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH THE UNITED RIVERSIDE REBUILDING CORPORATION FOR PROPERTIES LOCATED IN THE RIVERSIDE NEIGHBORHOOD EMPOWERMENT ZONE AT 613 SOUTH JUDKINS STREET, 120 PARADISE STREET, AND 2928 ENNIS AVENUE 613 South Judkins Street Pre-improvement TAD Value of Improvements $ 0 Pre-improvement Estimated Value of Land $2,000 Total Pre-improvement Estimated Value $2,000 120 Paradise Street Pre-improvement TAD Value of Improvements $ 0 Pre-improvement Estimated Value of Land $2,500 Total Pre-improvement Estimated Value $2,500 2928 Ennis Avenue Pre-improvement TAD Value of Improvements $ 0 Pre-improvement Estimated Value of Land $ 0 Total Pre-improvement Estimated Value $ 0 The municipal property tax on the improved value of the homes is estimated at $442 per year on the property located at 613 South Judkins Street, $439 per year on the property located at 120 Paradise Street, and $484 per year on the property located at 2928 Ennis Avenue for a total of $6,825 over the five-year period. 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 Basic Incentives. The tax abatement agreement provides that the agreement may be assigned without subsequent City Council approval to URRC's affiliates or its 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. City of Fort Worth, Texas 4"afor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 9/23/03 C-19762 05RIVERSTA 3 of 3 SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH THE UNITED RIVERSIDE REBUILDING CORPORATION FOR PROPERTIES LOCATED IN THE RIVERSIDE NEIGHBORHOOD EMPOWERMENT ZONE AT 613 SOUTH JUDKINS STREET, 120 PARADISE STREET, AND 2928 ENNIS AVENUE FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this 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 09/23/03 Additional Information Contact: Chris Anderson 7331