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HomeMy WebLinkAboutContract 33343-CA2 ary=RETAW.M' 2 CONTRACT i,i0. 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; LEGACY CAPITAL PARTNERS II, LTD., a Texas limited partnership ("Assignor"), successor in interest to Presidio Vista I, LTD. 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 Presidio Vista I, Ltd. In accordance with Section 4.1 of the Agreement, Presidio Vista L Ltd.was entitled to receive a reimbursement of all sums funded for the City's share in the cost of Phase IA. The total Reimbursement Amount was $3,269,805.62 plus interest per the Agreement, payable by the Board in installments calculated in accordance with the Agreement. C. By Consent of the Board and the City,the Agreement was assigned by Presidio Vista I,Ltd., to Legacy Capital partners II Ltd (50%), Granite Land Company(49%) and GLC Fort Worth LLC (10/6), through a Consent to Assignment Agreement on file in the City Secretary's Office as City Secretary Contract No. 33343-CAI (the"First Assignment"). D. To date, the Board has paid Assignor aggregate installments of $485,918.00 toward the Reimbursement Amount, leaving a remaining principal balance of$3,104,895.62,plus interest 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 Page 1 of OFFICIAL RECORD 2016 Consent to Assignment of Tax Increment Financing Development Agreement by Legacy Capital Partners 11,Ltd.,to Aberg Family Tnist and SDS Legacy LLC CITY SECRETARY r � �'""3 FT, WORTH, TX 40 t e11-vlvl.w 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. D. Assignor wishes to assign its portion of all right,title and interest in the Agreement to Aberg Family Trust and SDS Legacy LLC (collectively, the "Assignees") in the following proportions: 50% to Aberg Family Trust and 50% to SDS Legacy LLC. 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 consent to an assignment by Assignor to Assignees of its portion of all right, title and interest granted to Developer by the Agreement, in the following proportions: 50%to Aberg Family Trust and 50%to SDS Legacy LLC, , 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"). In total, this causes assignment of the original agreement to be as follows: 25% Aberg Family Trust, 25% SDS Legacy LLC, 49%Granite Land Company, and 1%GLC Fort Worth LLC. 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. Page 2 of 5 2016 Consent to Assignment of Tax Increment Financing Development Agreement by Legacy Capital Partners II,Ltd.,to Aberg Family Trust and SDS Legacy LLC 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] BOARD OF DIRECTORS OF TAX INCREMENT REINVESTMENT ZONE NUMBER SEVEN, CITY OF FORT WORTH,TEXAS: By: Cary Moon Chair Date: q •l S �i CITY OF FORT WORTH: By: Jesus"Jay"Chapa Assistant City Manager Date: APPROVED AS TO FORM AND LEGALITY: B : /IoI L�6� Maleshia Far r Senior Assistant City Attorney 0• V 8� Mary J. se 11Ci SecretarY � 000 ` XASF Page 3 of 5 2016 Consent to Assignment of Tax Increment Financing Development Agreement by Legacy Capital Partners q Ltd.,to Aberg Family Tnist and SDS Legacy LLC OFFICIAL RECORD CITY SECRETARY FT, WORTH,TX ASSIGNOR: LEGACY CAPITAL PARTNERS II,LTD., a Texas limited partnership: By: Legacy Capital Company II, a Texas corporation and its sole general partner: By: _ 4L z 11',- r:�4,=- Steven D. Saxon President Date: S U, &, 2 ASSIGNEE: ABERG FAMILY ST dat 3/23/2004 By: Peter M.Aberg,T Date: (e Zo <G ASSIGNEE: SDS LEG Y LLC,a Tex s limited liability company By: Steven D. Saxon, Sole Member Page 4 of 5 2016 Consent to Assignment of Tax Increment Financing Development Agreement by Legacy Capital Partners II,Ltd.,to Aberg Family Trust and SDS Legacy LLC EXHIBIT"A" THE ASSIGNMENT Page 5 of 5 2016 Consent to Assignment of Tax Increment Financing Development Agreement by Legacy Capital Partners II,Ltd.,to Aberg Family Trost and SDS Legacy LLC ASSIGNMENT OF TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT THIS ASSIGNMENT OF TAX INCREMENT FINANCING DEVELOPMENT AGREEMENT (this "Agreement") is made as of the 30th day of June, 2015, by and between LEGACY CAPITAL PARTNERS II,LTD., a Texas limited partnership ("Assignor"), and ABERG FAMILY TRUST dated 3/23/2004, Peter Aberg & Susan Aberg, Trustees, and SDS LEGACY LLC, a Texas limited liability company(each an"Assignee"and collectively,the"Assignees"). RECITALS: WHEREAS, Presidio Vista I Ltd., the Board of Directors of Tax Increment Reinvestment Zone Number Seven,City of Fort Worth(the `Board'I and the City of Fort Worth entered into that certain Tax Increment Financing Development Agreement (the "TIF Agreement') regarding Presidio Vista I Ltd.'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, Presidion Vista 1 Ltd. 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 Presidio Vista I Ltd.'s funding of the Project Costs; WHEREAS, each of the Assignees owns a partnership interest in the Assignor, which has previously had its pro-rata interest assigned to it from Presidio Vista I Ltd.;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: Aberg Family Trust dated 3/23/2004 Fifty percent(50%) SDS Legacy LLC Fifty Percent(50%). 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. I. 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: LEGACY CAPITAL PARTNERS H,LTD., a Texas limited partnership By: Legacy Capital Company II, a Texas corporation, its sole general partner By: (�LZ t�-= 4Kt � Name: Steven D. Saxon Title: President ASSIGNEE: ABERG FAMILY TRUST dated 3/23/2004 r By: L Name: Peter M.Aberg C�-- Title:Trustee ASSIGNEE: SDS LEGACY LLC, a Texas limited liability company By: Name: Steven D. Saxon Title: Sole Member