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HomeMy WebLinkAboutContract 33343-CA1 CITY SECRETARY CONTRACT NO. 333 3-C-N CONSENT TO ASSIGNMENT OF TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT (City Secretary Contract No.33343) This CONSENT TO ASSIGNMENT OF TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT ("Consent") is made and entered into by and between the BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER SEVEN, CITY OF FORT WORTH, TEXAS (the "Board"), an administrative body appointed in accordance with Chapter 311 of the Texas Tax Code to oversee the administration of Tax Increment Reinvestment Zone Number Seven, City of Fort Worth, Texas(the "TIF District"), a reinvestment zone designated by ordinance of the City of Fort Worth, Texas; the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipality organized under the laws of the State of Texas; PRESIDIO VISTA I, LTD., a Texas limited partnership ("Assignor"); LEGACY CAPITAL PARTNERS II, LTD., a Texas limited partnership ("Legacy Capital"); GRANITE LAND COMPANY, a California corporation ("Granite Land"); and GLC FORT WORTH,LLC, a Texas limited liability company("GLC"). The following introductory provisions are true and correct and form the basis of this Consent: A. The Board, the City, and Assignor previously entered into that certain Tax Increment Financing Development Agreement dated as of March 21, 2006, a public document on file in the City Secretary's Office as City Secretary Contract No. 33343 (the "Agreement"). Under the Agreement, the Board, the City, and Assignor agreed to a process for the financing of construction in phases of certain public improvements, namely the extension of North Tarrant Parkway between U.S. Highway 287 and Interstate Highway 35-W and certain interchanges between North Tarrant Parkway and U.S. Highway 287 (defined in the Agreement collectively as the "Public Improvements"),all as more specifically set forth in the Agreement. B. As of the date of this Consent, Phase IA of the Public Improvements, as defined in the Agreement, has been completed by Assignor. In accordance with Section 4.1 of the Agreement, Assignor was entitled to receive a reimbursement of all sums funded by Assignor for the City's share in the cost of Phase IA. The total Reimbursement Amount was$3,269,805.62,payable by the Board in installments calculated in accordance with the Agreement. To date, the Board has paid Assignor aggregate installments of $164,910.00 toward the Reimbursement Amount, leaving a remaining balance of$3,104,895.62 to be paid pursuant to the Agreement. C. Section 10 of the Agreement allows Assignor to assign the Agreement to another party or parties without the consent of the Board or the City provided that (i) Assignor has funded the total amounts that Assignor is required to fund under the Agreement and (ii) any assignees execute a written agreement with the City pursuant to which the assignees agree to be bound by all terms and conditions of the Agreement. Pagel of4 OFFICIAL RECORD Consent to Assignment of Tax Increment Financing Development Agreement CITY SECRETARY by Presidio Vista I,Ltd.to Legacy Capital Partners II,Ltd.,Grant Land Company,and GLC ort y T,X 1 1 -19- 1 Algl D. Assignor wishes to assign all right, title and interest in the Agreement to Legacy Capital, Granite Land, and GLC (collectively, the "Assignees") in the following proportions: 50% to Legacy Capital, 49% to Granite Land, and 1% to GLC. Although all phases of the Public Improvements have not been completed, the phase that Developer elected to fund in accordance with the process outlined in Section 3.1, Phase IA, has been fully completed. No other phase is required to be funded under the Agreement. Therefore, Assignor has the right to assign the Agreement as set forth in Section 10. NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,the Board, the City,Assignor, and Assignees agree as follows: 1. The Board and the City hereby consents to an assignment by Assignor to Assignees of all right, title and interest granted to Developer by the Agreement, in the following proportions: 50% to Legacy Capital, 49% to Granite Land, and 1% to GLC, effective as of the later of the date on which the Board, the City, Assignor, and Assignees have all executed this Consent or the effective date of the Assignment attached hereto as Exhibit "A" (the "Assignment"), which is hereby made a part of this Consent for all purposes("Effective Date"). 2. The Board and the City consent to the Assignment expressly upon the promise and covenant by Assignees, and Assignees hereby promise and covenant to the Board, that as of the Effective Date Assignees,jointly and severally, will be bound by the Agreement and will comply with all duties and obligations of Developer set forth in the Agreement. 3. By execution of this Consent, the City does not ratify or endorse any agreement or representation between Assignor and any of the Assignees; grant any of the Assignees any rights greater than those granted to Assignor under the Agreement; or consent to any amendment to the Agreement. 4. Assignees understand and agree that no act or omission of Assignor, whether before or after the Effective Date, will serve to mitigate any Event of Default set forth in Section 7 of the Agreement. 5. By execution of this Consent, the City does not waive any of its governmental powers or rights of sovereign immunity. The provisions and conditions of this Consent are solely for the benefit of the parties hereto, and are not intended to create any rights, contractual or otherwise, to any other person or entity. 6. All terms in this Consent that are capitalized but not defined shall have the meanings assigned to them in the Agreement. IN WITNESS WHEREOF, the undersigned have caused this Consent to be executed in multiples as of the last date indicated below: [SIGNATURES IMMEDIATELY FOLLOW ON NEXT TWO (2) PAGES] Page 2 of 4 Consent to Assignment of Tax Increment Financing Development Agreement by Presidio Vista I,Ltd.to Legacy Capital Partners II,Ltd.,Grant Land Company,and GLC Fort Worth,LLC BOARD OF ORS OF TAX INCREMENT INV ONE NU BER SEVEN, ITY O R ORTH, T AS: By: anny 3�carth Chair / Date: ( I CITY OF FORT WORTH: By: Attested by: Fernando Costa Assistant City Manager Date: 18111 Marty Hendrix, ity Secretary pab 0 000Qo . APPROVED AS TO FORM AND LEGALITY: �o opo 0004. 4+k�. Id Akio By: Peter Vaky Deputy City Attorney y PRESIDIO VISTA I, LTD., a Texas limited partnership: By: GLC Fort Worth, LLC, a Texas limited liability 7/r;7/z/: n s sole general partner: By: ,[��`---- Na e: Tit,e: Date: Mike McKernan DIRECTOR OF OPERATIONS GRANITE LAND COMPANY Page 3 of 4 OFFICIAL RECORD Consent to Assignment of Tax Increment Financing Development Agreement CITY SECRETARY by Presidio Vista I,Ltd.to Legacy Capital Partners II,Ltd.,Grant Land Company,and GLC Forl WollL LLC WORTH, TX LEGACY CAPITAL PARTNERS II,LTD., a Texas limited partnership: By: Legacy Capital Company II, a Texas corporation and its sole general partner: By:4 "L 6, Steven D. Saxon President Date: (D /- � / (.I GRANITE LAND COMPANY, a California corporation: By: 4Nae: Title: Date: DIRECTOR OF OPERATIONS GRANITE :-,1?;D COMPANY GLC FOR WO C, a Texas limited liability company: Na e: Ti e: Date: Mike McKernan DIREST-n^ OF OPERATIONS ^F.1, "'� COMPANY Page 4 of 4 OFFICIAL RECORD Consent to Assignment of Tax Increment Financing Development Agreement nn, 4CRETARY by Presidio Vista I,Ltd.to Legacy Capital Partners II,Ltd.,Grant Land Company,and GLC Fort Wort 1- FT. FT. WORTH, TX Exhibit"A" The Assignment Consent to Assignment of Tax Increment Financing Development Agreement by Presidio Vista I, Ltd.to Legacy Capital Partners II, Ltd., Grant Land Company, and GLC Fort Worth,LLC ASSIGNMENT OF TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT THIS ASSIGNMENT OF TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT (this "Agreement') is made as of the��`day of September, 2011, by and between PRESIDIO VISTA I, LTD., a Texas limited partnership ("Assignor"), and LEGACY CAPITAL PARTNERS 11, LTD., a Texas limited partnership, GRANITE LAND COMPANY, a California corporation and GLC FORT WORTH, LLC, a Texas limited liability company (each an "Assignee" and collectively, the "Assignees"). RECITALS: WHEREAS, Assignor, the Board of Directors of Tax Increment Reinvestment Zone Number Seven, City of Fort Worth (the "Board") and the City of Fort Worth entered into that certain Tax Increment Financing Development Agreement (the "TIFAgreenrent") regarding the Assignor's funding of certain Public Improvements in connection with a certain Development Site; WHEREAS, all terms beginning with an initial capital letter and not otherwise defined shall have the meaning ascribed to it in the TIF Agreement. WHEREAS, pursuant to the TIF Agreement, Assignor is entitled to reimbursement from the Board out of Available Development Site TIF Funds for Project Costs incurred by Assignor (the "Reimbursement Amount') in consideration of Assignor's funding of the Project Costs; WHEREAS, each of the Assignees owns a partnership interest in the Assignor; and WHEREAS, Assignor desires to assign the Reimbursement Amount, together with all other rights, titles and interests of Assignor in and to the TIF Agreement to the Assignees in proportion to their respective interests in the Assignor(the "Interests") as follows: Legacy Capital Partners II, Ltd. Fifty percent (50%) Granite Land Company Forty-Nine Percent (49%) GLC Fort Worth, LLC One percent (I%). NOW, THEREFORE, in consideration of distribution in kind of an asset of the partnership, Assignor hereby irrevocably assigns, transfers and sets over to the Assignees, pro rata in accordance with their respective Interests, the Reimbursement Amount, to be paid as and when due to Assignor under the TIF Agreement,together with all other rights,titles and interests in and to the TIF Agreement. 1. Assignees hereby accept the foregoing assignment and agree severally to be bound by all duties and obligations (if any remain) of Assignor under the TIF Agreement. 2. This Assignment shall be binding upon and shall inure to the benefit of Assignor, each Assignee and their respective successors and assigns. 3. This Assignment shall be governed by and construed in accordance with the laws of the State of Texas. 4. This Assignment may be executed in any number of counterparts, each of which so executed shall be deemed original; such counterparts shall together constitute but one agreement. [SIGNATURES FOLLOW ON NEXT PAGE] IN WITNESS WHEREOF, Assignor and Assignee have each executed this Assignment as of the date first above written. ASSIGNOR: PRESIDIO VISTA I, LTD., a Texas limited partnership By: GLC Fort Worth, LLC, a Texas limited liability company, its sole general partner By: Name: Mik ernan Title: fOH OF OPERATIONS GRANITE LAND eOMPANY ASSIGNEE: GLC FORT WORTH,LLC, a Texas limited liability company, its sole general partner By: Name: Mik ernan Title: GRANITE L,NN[) CQ M RA N Y ASSIGNEE: GRANITE LAND COMPANY, a California corporation BY. ` Name: e McKernall ECTOR OF OPERATIONS Title: rzRetiiTE I.AF;O COMPANY OMCI L RECORD CITY SECRETARY FT. WORTH, TX Page 2 ASSIGNEE: LEGACY CAPITAL PARTNERS II,LTD., a Texas limited partnership By: Legacy Capital Company II, a Texas corporation, its genera a ner By: ( �\VA -/k J;V�� Steven D. Saxon,President OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Page 3