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Home My WebLink AboutContract 38639ASSIGNMENT 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 1409 Sierra Estate Trail (Sierra Vista sub.) ,vhich is located in the Rolling Hills Neighborhood Empowerment Zone, such Agreement dated - -O City � Secretary Contract Number �3 "Agreemen�� t"). r B. Pursuant to that certain Special Warranty Deed, dated as of January 22, 2008 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 I ghts, 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. D Effective Date. The effective date of this Assignment is _ - 200 ("Effective Date"). All rights, duties and obligations under the Agreement ans' g, 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. r�- OFFICIAL RECORD CITY SECRETARY WAfter"I TX 7 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. R_epresentatons. 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 ASSIGNOR: Sierra Vista, L.P. Vertex Investments, General Partner 3715 Camp Bowie Blvd. Fort Worth, TX 76107 ASSIGNEE: 11MH Lifestyles, L.P. 9001 Airport Freeway, Suite 400 North Richland Hills, TX 75180 2 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. ASSIGNOR: Sierra Vista, L.P., Vertex Investments, General Partner ASSIGNEE: Hlvg-I Lifestyles, L.P. Name: : Treasurer CITY OF FORT WORTH T.M. Higgins ��- Assistant City Manager 3 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. l0. 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: Sierra Vista, L.P., Vertex Investments, General Partner Name: Title: ASSIGNEE: HIvII� Lifestyles, L.P. Name: Mi rhPl 1 P Title: Treasurcr CITY OF FORT WORTH Manager APPROVED AS TO FORM AND LEGALITY: Charlene Sanders Assistant City Attorney M & C: C-21313 t�FFICIAL �tECpRD CITY SECRETARY T. WORTH, TX STATE OF I EXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared T.M. 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. the 5 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Deanna Boaz, President of Sierra Vista, L.P., Vertex Investments, General Partner, 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 the Sierra Vista, L.P., Vertex Investments, General Partner. Notary Public in and for the State of Texas STATE ®F TEXAS § COUNTY OF I ARRANT § 200 HAND AND SEAL OF OFFICE thisay of �G MINDI MORROW Notary rUunC, State of Texas My Commission Expires March 08, 2009 BEFORE ME, the undersigned authority, on thi ersonally appeared Michelle Reigle Treasurer of HMH L'4 es L.P., a Texas limited partnership, known to me to be the person wh name is subscribed to the foregoing instrument, and acknowledged to me that executed the same for the purposes and consideration therein expressed, in the pacify therein stated and as the act and deed of the HMH Lifestyles, L.P., a Tex fed partnership. GIVEN UNDE HAND AND SEAL OF OFFICE this day of , 2007 Notary Public in and for the State of Texas C STATE Uiv TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Deanna Boaz, President of Sierra Vista, L.P., Vertex Investments, General Partner, known a to be the person whose name is subscribed to the foregoing instrument, an owledged to me that he executed the same for the purposes and consideration rein expressed, in the capacity there' stated and as the act and deed of tb ;terra Vista, L.P., Vertex Investments, General Partner. GIVEN UNDER MY HAND A� SEAL OF OFFICE this day of . 2007 / Notary Public in and the State of Texas STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Michelle Reigle Treasurer. of BMH 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 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 0 / �0 A A n . 200 r� in and for the State of Texas AND SEAL OF OFFICE this z��ay of �..tiP�;y��b;,.• M�RI� RAI3�L •_°`• c ' NOTARY PUBLIC * State of Texas * `o,` 2010 : gTEOFs� Comm. Exp. 0&23- M&C Review Page I of 3 DATE: CODE: 2/21 /2006 C COUNCIL ACTION: Approved on 2/21/2006 REFERENCE NO., C-21313 LOG NAME. TYPE: NON- PUBLIC CONSENT HEARING. Offscia[ site of the City of Fort forth, Fexas 05SIERRAVISTA NO 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 afive-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 http://apps. cfwnet.org/council�acket/mc_review.asp?ID=533 5&councildate=2/21 /2006 6/1 /2009 M&C Review Page 2 of 3 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: Pre -improvement TAD Value of Improvements Pre -improvement Estimated Value of Land Total Pre -improvement Estimated Value -0- 2025.00 $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 http://apps.cfwnet.org/council�acket/mc review.asp?ID=5335&councildate=2/21/2006 6/1/2009 M&C Review Page 3 of 3 Submitted for City Manager's Office b� Originating Department Head: Additional Information Contact: ATTACHMENTS Final TA Agreement for M&C.doc Dale Fisseler (6266) Jerome Walker (7537) Sarah Odle (7316) http://apps.cfwnet.org/council�acket/mc review.asp?ID=5335&councildate=2/2U2006 6/ 1 /2009