HomeMy WebLinkAboutContract 36231 -� s—Tm rr iy
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
HNIH 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 1517 Chama Drive
(Lot 26, Block B, sierra vista)which is located in the Rolling Hills
Neighborhood Empowerment Zone, such Agreement dated City
Secretary Contract Number. ("Agreement"),
B. Pursuant to that certain Special Warranty Deed, dated. as of
October 13, 2006, 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 HNdH 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 TTD EFORB, 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 October 13, 2006
("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.
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
seelang to enforce any provisions of the Agreement or 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 Throclanorton
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
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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. be 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.
ASSIDNOR: Sierra Vista,L.P.,?Jertex Investments, General Partner
Name:' Deanna Boaz
Title; vire Pres-i_dprit
ASSIGNEE:HMH Lifestyles,L.P.
Name: Nichelle Rei i
Title: TrengurPr
CITY OF FORT WORTH
Dale isseler
Assistant City Manager
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ATTEST:
C�a
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Leann Guzman
Assistant City Attorney
M& C: C-21313
1�11 j A L lE X�)D�
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale
Fisseler, Assistant City Manager of the CTI'Y OF FORT WORTH, a municipal
corporation, known to me to be 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 consideration therein expressed and is the capacity therein
stated.
GrVEIJ UNDER MY HAND AND SEAL OF OFFICE this &,day. of
200v j-
Notary Public in and for .¢ ANA L.BR6SENO
Notary Public,State of Texas
the State of Texas , My Commission Expire:
March 07,2011
5
STATE OF TEXAS §
COUNTY OF TAR.RANT §
BEFORE ME, the undersigned authority, on this day personally appeared Deanna Boaz,
Vice President of Sierra Vista, L.P., Vertex Investments, General Partner, known to
me to be the person whose name• is subscribed to the foregoing instnlment, and
acknowledged to me that he executed the same for the pinposes and consideration therein
dxpressed, in the capacity therein stated and as the act and deed of the Sierra.Vista, L-,P,,
Vertex Investments, General Partner,
GNEN UNDER MY HAND AND SEAL OF OFFICE this L3_day of
October 12006,
Notary Public, in and for
the State of .Texas
i ,,r;wty;•.:•. MINDI MORROW
Notary Public,State of Texas
i. My Commission Expires
March 08.2009
STATE OF TEXAS g
COUNTY OF TARRAM §
BEFORE ME. the undersigned authority, on this day personally, appealed
Michelle Rei•le, Treasurer of BMH Lifestyles L.P., a Texas • limited
partnersmp, known to me to be the person whose name is subscribed to the foregoing
instrument, and ackaowledged'to me that he 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this /3 day of
October •2006. '
Notary Public, in aiU for
the fate of Texas mom, z
..;c� OF TEO- '
��%� • p�RES••.: ��.��
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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
Page 2 of 2
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