HomeMy WebLinkAboutContract 36211 CITY SECRETARY
CONTRACT NO.
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agreement is made and entered into by and
between Sierra Vista, L.P., Vertex Investments, General Partner("Assignor") and HMH
Lifestyles, L.P., ("Assignee") and the City of Fort Worth, ("City")
RECITALS
A. Assignor and the City of Fort Worth, Texas (the "City") are parties to that certain
Tax Abatement Agreement ("Agreement") for Property Located Lot 20, Block D
Sierra Vista (2909 Nara Vista Trail) which is located in the Rolling Hills
Neighborhood Empowerment Zone, such Agreement dated 1 3/b (a City
Secretary Contract Number 34!7,2 ("Agreement").
B. Pursuant to that certain Special Warranty Deed, dated as of April 9, 2007,
recorded under Tarrant County Deed Records, Assignee acquired title to the real
property,which is the subject of the Agreement.
C. Section 5 of the Agreement permits Assignor to assign all of its rights under the
Agreement to HMH Lifestyles, L.P. without obtaining the prior consent of the
City Council.
D. In order to evidence the assignment referred to above, Assignor agrees to make
the conveyance to Assignee as herein set forth.
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 April 9,
2007 ("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.
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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
of 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
ASSIGNOR:
Sierra Vista, L.P.
Vertex Investments, General Partner
3715 Camp Bowie Blvd.
Fort Worth, TX 76107
ASSIGNEE:
HMH Lifestyles, L.P.
9001 Airport Freeway, Suite 400
North Richland Hills, TX 75180
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 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: Sierra Vista, L.P., By: Vertex Investments, Inc. , General Partner
By:
Name: Deana Boaz
r�,
Title: Vice President
ASSIGNEE: HMH Lifestyles, L.P., By: BNMJR, Inc., General Partner
By:
Name: Michelle Reigle
Title: Treasurer
CITY OF FORT WORTH
By: 6A--Ql
Dale Fisseler
Assistant City Manager
ATT
By:
T'�N 6k1t,
City Secretary
APPROVED AS TO FORM AND LEGALITY:
By: Cam
, Leann Guzman
Assistant City Attorney
M & C: C-21313
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.Affgl M
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 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 the
consideration therein expressed and in the capacity therein stated.
GIVE UNDE MY HAND AND SEAL OF OFFICE &X day of
2007.
ANA L.BRISENO
Notary Public,State of Texas
• ./�/ '�'7�!} Wry,Commission Expires
Notary Public in and for March 07,2011
the State of Texas
STATE OF TEXAS )(
COUNTY OF TARRANT )(
BEFORE ME, the undersigned authority, on this day personally appeared
Deanna Boaz, Vice President Vertex Investments, Inc., General Partner of Sierra
Vista, L.P., known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that she executed the same for the
purposes and consideration therein expressed, in the capacity therein stated and as
the act and deed of the Vertex Investments, Inc., General Partner of Sierra Vista,
L.P.,.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this_�day
of njU / , 2007,
` °"•, MINDI MORROW
.t�pv rasp
P ) Notary Public,State of Texas
My Commission Expires
Notary Public in and for '%'; March 08,2009
the State of Texas
STATE OF TEXAS )(
COUNTY OF TARRANT )(
BEFORE ME, the undersigned authority, on this day personally appeared
Michelle Reigle, Treasurer of BNMJR, Inc., General Partner of HMH Lifestyles
L.P., a Texas limited partnership, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that she
executed the same for the purposes and consideration therein expressed, in the
capacity therein stated and as the act and deed of the HMH Lifestyles, L.P., a
Texas limited partnership.
G VEi1.UNDER MY HAND AND SEAL OF OFFICE THIS _
day of & , 2007.
ZIGREWJ�///i//i
Notary Public in and for o'0
the State of Texas
SrArE of' :
1191�L�0�\a``w\,e
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/21/2006
DATE: Tuesday, February 21, 2006
LOG NAME: 05SIERRAVISTA REFERENCE NO.: C-21313
SUBJECT:
Approval of a Tax Abatement Agreement with Sierra Vista, L.P., a Texas Limited Partnership, and
HMH Lifestyles, L.P., a Texas Limited Partnership, Located in the Rolling Hills Neighborhood
Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Approve a five-year Municipal Property Tax Abatement for 235 properties listed in Exhibit "A" owned by
Sierra Vista, L.P., and located in the Rolling Hills Neighborhood Empowerment Zone (NEZ);
2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Sierra
Vista, L.P. and HMH Lifestyles, L.P., are true and correct; and
3. Authorize the City Manager to enter into a Tax Abatement Agreement with Sierra Vista, L.P. and HMH
Lifestyles, L.P. for the properties listed in Exhibit "A" in accordance with the NEZ Tax Abatement Policy and
Basic Incentives.
DISCUSSION:
Sierra Vista, L.P. and HMH Lifestyles, L.P., are the owners/developers of the 235 properties listed in Exhibit
"A". This real property is located in the Rolling Hills NEZ and Neighborhood Empowerment Reinvestment
Zone (NERZ No. 8). Sierra Vista, L.P. and HMH Lifestyles, L.P. have applied for a five-year municipal
property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (MSC G-14947), as
amended. The NEZ Program offers a five-year municipal property tax abatement on the increased value of
improvements to the qualified owner of any new construction within a NEZ. The Housing Department has
reviewed the application and certified that the property meets the eligibility criteria to receive NEZ municipal
property tax abatement.
Sierra Vista, L.P. and HMH Lifestyles, L.P. will invest a minimum of $20,000,000 to construct two hundred
and thirty two single-family homes in the Rolling Hills NEZ. In order for HMH Lifestyles, L.P. or any other
developer or builder approved by the Housing Department Director to qualify for the tax abatement, HMH
Lifestyles, L.P. or any other developer or builder approved by the Housing Department Director must
construct homes with a minimum of 1200 square feet of living space with at least three bedrooms and one
and one-half baths which will appraise for a minimum of $80,000.00. A more detailed description of the
homes to be constructed is attached as Exhibit "B". The Agreement is attached as Exhibit "C".
Upon execution of the tax abatement agreement, the total assessed value of each home used for
calculating municipal property tax will be frozen for a five-year period, starting on the date the home is sold
to a homebuyer to be used as a primary residence, at the pre-improvement value as defined by the Tarrant
Appraisal District (TAD) on January 1, 2006, as follows:
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 10/06/2007
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Pre-improvement TAD Value of Improvements -0-
Pre-improvement Estimated Value of Land $2025.00
Total Pre-improvement Estimated Value $2025.00
The municipal property tax on the improved value is estimated at $484.00 per house, per year, for a total of
$ 2,420.00 over the five-year period for each house. 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.
The tax abatement agreement provides that the agreement may be assigned without subsequent City
Council approval to Sierra Vista, L.P., HMH Lifestyles, L.P., or another builder or developer's first
mortgage, or to a homebuyer who will use the required improvements as his/her primary residence, or to
the homeowner's mortgagee. All other assignments must be approved by City Council. The agreement
also provides that the failure of the owner to send the City notification of the sale of the required
improvements and the executed assignment of the agreement with the new owner within 30 days of the
transfer of ownership of the required improvements shall result in the automatic termination of the
Agreement.
This property is located in Council District B.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/AccountlCenters FROM Fund/Account/Centers
Submitted for City Manager's Office b)E Dale Fisseler(6266)
Originating Department Head: Jerome Walker(7537)
Additional Information Contact: Sarah Odle (7316)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 10/06/2007