HomeMy WebLinkAboutIR 9054INFORMAL REPORT TO CITY COUNCIL MEMBERS
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To the Mayor and Members of the City Council
No. �054
May 26, 2009
Page 1 of 2
SUBJECT: Amendment to Tax Abatement Agreement with Bank One, N.A. to
Allow Assignment of Real Property Agreement to Future Property Owners
BACKGROUND:
On December 17, 2002, the City Council entered into a Tax Abatement Agreement with Bank
One, N.A. (now JPMorgan Chase Bank, N.A. or JPMC) for a facility located at 14800 Frye Road
(map on following page). The site is currently owned and operated by JPMC.
In April of 2009, JPMC approached the City about the JPMC's intention to sell the facility to an
investor and lease it back on a long-term basis. State Law requires tax abatement agreements to
be with property owners. In order to facilitate the transaction, an amendment to the existing tax
abatement agreement will be required to bifurcate the rights and obligations associated with the
real property from the rights and obligations associated with the business personal property in
order for the real property rights and obligations to be assigned to the new real property owner.
I JPMC also requested that the assignment associated with the pending transaction plus any future
transactions during the abatement period be allowed without the consent of the City. This would
, only be allowed under the following conditions:
1. JPMC or an affiliate maintains occupancy of the property and remains in
compliance with the terms of the existing agreement;
2. JPMC and future property owners agree to be bound to all obligations in the existing
agreement; and
3. The City must be notified in the event of a transaction.
All other terms and conditions of the agreement would remain in effect.
RECOMMENDATION:
Staff has prepared a contract amendment allowing for assignment of the real property rights and
obligations to subsequent owners of the real property subject to the three conditions. An M&C
authorizing the execution of such an amendment will be forthcoming.
A. F i e r
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
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May 26, 2009
Page 2 of 2
SUBJECT: Amendment to Tax Abatement Agreement with Bank One, N.A. to
Allow Assignment of Reai Property Agreement to Future Property Owners
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS