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HomeMy WebLinkAboutContract 38623,t forth in this gations undei'�ECAR� NTRACT NO ASSIGNMENT OF TAX ABATEMENT AGREEMENT • This Assignment of Tax Abatement Agreement is made and entered into by and between S&M Building Corporation ("Assignor") and Alan R. Shorter and David A. Fenley, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. S&M Building Corporation and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located at 5851 Oak Hollow Court; Block 21, Lot 5; Woodhaven Country Club Estates ("Property") which is located in the Woodhaven Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth 08/21/2007, City Secretary Contract Number 35756 ("Agreement"): B. Section 5 of the Agreement permits Assignor to assign all of its rights under the Agreement to Assignee, without obtaining the prior consent of the City Council: C. Pursuant to that certain Special Warranty Deed dated as of January 31, 2008 , recorded under Tarrant County Deed Records, Assignor conveyed the Property to Alan R. Shorter and David A Fenley and Assignee acquired title to the real property, which is the subject of the Agreement. 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 January Pq 2008 ("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 sf Assignment, Assignor will be discharged from any and all further obl: 05-27-09 PO4: the Agreement as of the Effective Date. Assignor must surrender the Property to the Assignee on or before 11:59 p. in. 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 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 Throckmorton Fort Worth, Texas 76102 ASSIGNEE: Alan R. Shorter and David A. Fenley 5851 Oak Hollow Court Fort Worth, Texas 76112 ASSIGNOR: S&M Building Corporation 9001 Airport Freeway #400 N. Richland Hills, TX 76180 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. 2 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. ASSIGNOR: S&M Building iv ame:v r i Title: /'R5 d ASSIGNEE: Alan R. Shorter and David A. Fenley Name: �A4v/b A. FWaEy 3 CITY OF FORT WORTH T.M. Higgins Assistant City Manager ATTEST: APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney M & C: C-22331 �t��1GiAL REGARD CITY �CRETARY FT. WORTH, TX 0 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared la Higgins, Assistant City Manager of the CITY 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 in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2099. " 2a,PA°P�A<,,, MARIA S. SANGHEZ Not y Public m and or U NOTARY PUBLIC the State of Texas STATE OF TEXAS My Comm. Exp. 12-14-2009 5 STATE OF TEXAS Is COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared O. N. Mitchell, Jr., President of S & M Building Corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged 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 Courtney Homes, Inc. GIVEN UNDER MY HAND AND SEAL OF OFFICE this .0 day of Notary Public in and for the State of Texas STATE OF TEXAS § COUNTY OF TARRANT § �pY PV ----- `.0 Lisa A Davis My Commission Lxpices •—.+� 04/14/2009 BEFORE ME, the undersigned authority, on this day personally appeared Alan R. Shorter and David A. Fenley known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated. Notary the Sty( GIVEN UNDER MY HAND AND SEAL OF OFFICE this I day of T. BEESaN Mary PuDNc, State of Texas My Commission Expires 05/16/2009 C� M&C Review Page 1 of 2 Official site of the City of Fort Worth, Texas COUNCIL ACTION: Approved on 8/21/2007 DATE: 8/21/2007 REFERENCE NO.: C-22331 LOG NAME: 0558510AK CODE: C TYPE: NON -CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Five -Year Tax Abatement Agreement with S&M Building Corporation for Property Located at 5851 Oak Hollow Court in the Woodhaven Neighborhood Empowerment Zone RECOMMENDATION: It is recommended that the City Council: 1. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the Agreement) with S&M Building Corporation are true and correct; and 2. Authorize the City Manager to enter into afive-year Tax Abatement Agreement with S&M Building Corporation for the property at 5851 Oak Hollow Court in the Woodhaven Neighborhood Empowerment Zone (NEZ) in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: S&M Building Corporation is the owner of the property at 5851 Oak Hollow Court (Block 21, Lot 5, Woodhaven Country Club Estates, Fifth Filing), which is located in the Woodhaven NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ No. 10). S&M Building Corporation has applied for afive-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (Resolution No. 3487, 05-2007). The NEZ Basic Incentives offers afive-year municipal property tax abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation 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. The owner plans to invest a minimum of $140,000 to construct a single family home in the Woodhaven NEZ. A description of the home to be constructed and drawings are attached as Exhibit "A." The Tax Abatement Agreement is attached as Exhibit "B." Upon execution of the Agreement, the total assessed value of the home used for calculating municipal property tax will be frozen for afive-year period, starting on January 1, 2008, at the pre - improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2007 as follows: Pre -improved TAD value of improvements $ 0.00 Pre -improved TAD value of land $30,500.00 http://apps.cfwnet.org/council�acket/mc review.asp?ID=8143&councildate=8/21/2007 03/27/2009 M&(',:Review Total pre -improvement estimated value $ 30500.00 Page 2 of 2 The municipal property tax on the improved value of the home after its construction is estimated at $843.00, per year, for a total of $4,215.00 over the five-year period. 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 S&M Building Corporation's first mortgagee, or to a homebuyer who will use the required improvements as his/her primary residence, or to that homebuyer's mortgagee. All other assignments must be approved by the City Council. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/AccountlCenters Submitted for City Manager's Office b� Originating Department Head: Additional Information Contact: ATTACHMENTS Continued Exhibit A.pdf Final TA Agreement with Attachments.doc Map.pdf FROM Fund/Account/Centers Dale Fisseler (6140) Jerome Walker (7537) Sarah Odle (7316) http://apps.cfwnet.org/council�acket/mc_review.asp?ID=8143&councildate=8/21/2007 03/27/2009