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Home My WebLink AboutContract 36226 Ry Z 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 46, Block A Sierra Vista (1313 Sierra Estate Tr.) which is located in the Rolling Hills Neighborhood Empowerment Zone, such Agreement dated 13 06 City Secretary Contract Number 3 &,T i ("Agreement"). B. Pursuant to that certain Special Warranty Deed, dated as of May 25, 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 May 25, 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. o ��o 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 i 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., a Texas limited partnership By: Vertex In tments, Inc., a xas co oration, its General Partner By: a' Name: Deana Boaz Title: Vice President ASSIGNEE: HMH Lifestyles, L.P., a Texas limited partnership By: BNMJR, Inc., a Texas corporation, its General Partner By: Name: Michelle Reigle Title: Treasurer CITY OF FORT WORTH By: Dale Fisseler Assistant City Manager ATTEST: By: City Secretary APPROVED TO FORM AND LEGALITY: By: 15-11—Leann Guzman Assistant City Attorney M & C: C-21313 4�,l, � ' �� . "� ? a ULK, 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 UND R MY HAND AND SEAL OF OFFICE this"day of 2007. zzt� „ ANA L.BRI8EN0( l Notary Public,state of Texas Notary Public in and for v' *„ My Commission Expires the State of Texas March 07,2011 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 2,01, ay of , 2007. .. ""01 Cwe MINDI MORROW Notary Public,State of Texas My Commission Expires March 08,2009 Notary Public in and for the State of Texas STATE OF TEXAS X 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. GIVET:UNDER MY HAND AND SEAL OF OFFICE THIS L5� day of Inqv , 2007. \Ala 4 4. ��'.•P °'�:�:; MARIE RABEL Notary Public in and for '*1. * NOTARY PUBLIC sr . ' State of Texas the State of Texas Comm.Exp.06-23-2010 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 (M&C 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 rage L or l _ 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 8. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: 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