HomeMy WebLinkAboutContract 38643This 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 c rtain
Tax Abatement Agreement ("Agreement") for Property Located I!= _k-Ot
1345 Sierra Estate Trail ?vhich is located in the Rolling Hills 8)
Neighborhood Empowerment Zone, such Agreement dated «®o,$ City '7
Secretary Contract Number ."Agreement").
B. Pur uant to that certain Special Warranty Deed, dated as of
-6 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 refereed 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
("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.
OFFICIAL RECAR
CITY �CRETA�;`
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 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:
HMH 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 fuliy�bmdmg 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 aU 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
1 LLll.. .� 1VJ14.iV11�
ASSIGNEE: HMH Lifestyles, L.P.
Name:. Tim Kei __
Title:
CITY OF FORT Vi�ORTH
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 fatly -binding on the parties so
executing; and all such counterparts together constitute one and the same
agreement.
10. Binding Offer. This Assignment will be nat be binding until executed and
delivered by all three parties.
IN WITNESS WI�REOF, 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: H\MH Lifestyles, L.P.
r
r ~
Name' Tim Keith
Title: CFO
CITY OF FONT WORTH
City Manager
3
ATTEST:
City Secretary
APPROVED AS TO FORM AND LEGALITY:
Assistant City Attorney
M & C: C-21313
0
WO R 9-'J-
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Ta
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
2009.
Notary ublic in and for
the St to of Texas
MARIA S. SANCMEZ
NOTARY PUBLIC
STATE OF TEXAS
My Comm. Exp. 12-14-2009
5
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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
Ida 200?j
otary Public in and for ,,,,pyp��� MINDI MORROW
"' °%= ry Public, State c' Texas
the State of Texas :N My Comm
fission Expires
' �,,_ March 08, 2009
1U N ry yUy Ili j•
3EFORE ME,undersign
on this day personally appeared
Tim KeitYt CFO o Lifestyles L.P., a Texas Iirnited
partnership, known to me to be the son whose name is subscribed to the foregoing
instrument, and acknowledged to e that he executed the same for the purposes and
consideration therein expresse in the capacity therein stated and as the act and deed of
the HMH Lifestyles, L.P., exas limited partnership.
CIVEN�ER iV1Y 1IE1ND AND SEAL OF OFFICE this day of
2007
Notary Public in and for
the State of Texas
6
BEFORE Iv1E, the undersigned authority, on this day personally appeared De $oa4j,
President of Sierra Vista, L.P., Vertex Investments, General Partner, tan to me to be
the person whose name is subscribed to the foregoing instrumen d acknowledged to
me that he executed the same for the purposes and considera ' therein expressed, in the
capacity therein stated and as the act and deed 000�e Sierra Vista, L.P., Vertex
Investments, General Partner.
GNEN UNDER MY FCI�NLLLLLLL�/AND SEAL OF OFFICE this day of
Notary Public in and for
the State of Texas
BEFORE ME, the undersigned authority, on this day personally appeared
Tim Keith _, CFO of H1VIH 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.
G1VEN UNDER N.IY
,,•L�. , zao 8
Notary Public in and for
the State of Texas
AND SEAL OF OFFICE this 1 f day of
:•,pPY°°e<,•; MARIE RABEI.
:o o,
_' NOTARY PUBLIC
*' State of Texas
'y .
too
�9TE2;.�'• Comm. Exp. 06_23-2010
M&C Review
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DATE:
CODE:
2/21 /2006
C
COUNCIL ACTION: Approved on 2/21/2006
REFERENCE NO.: C-21313
TYPE:
NON -
CONSENT
LOG NAME:
PUBLIC
HEARING:
Official ite of file Cih/ of Fort �"1or�th, Texas
u r
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 afive-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
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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
Jays 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
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Submitted for City Manager's Office bv:
Originating Department Head.
Additional Information Contact:
ATTACHMENTS
Final iA Agreement for_M&C.doc
Dale Fisseler (6266)
Jerome Walker (7537)
Sarah Odle (7316)
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