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Home My WebLink AboutContract 48635-A1 i CITY SECRETARY (-'—`0 'TRACT NO, �3 AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A R�C�iV202� NEIGHBORHOOD EMPOWERMENT ZONE CSpA� (CITY SECRETARY CONTRACT NO. 48635) C This AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE ("Amendment") is made and entered into by and between the CITY OF FORT WORTH ("City"), a home rule municipal corporation organized under the laws of the State of Texas, and Criterion Race Street I,LLC("Owner"). The following introductory provisions are true and correct and for the basis of this Amendment: A. As of August 2, 2016 the City and Owner entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 48635 (the "Agreement"). Under the Agreement, Owner agreed, to construct a minimum of 151,000 square feet of development as evidenced by a temporary or permanent certificate of occupancy consisting of(a)a minimum of 138,000 square feet ofresidential rental space containing at least 152 dwelling units (the "Apartments") comprising at least twenty percent(20%) of the total Gross Floor Area; and (b) a minitnum of 13,800 square feet of office, restaurant, entertainment, retail sales and service uses,and/or live/work space(the"Retail Spaces");and(c)a multi-level parking garage to accommodate the apartment residents and retail customers, (the "Project", as more specifically defined in the Agreement)on certain real property located in the former Six Points Neighborhood Empowerment Zone. In return, the City agreed to grant Owner a Municipal Tax Abatement as authorized by Chapter 378 of the Texas Local Government Code and outlined in the Agreement. B. Owner completed construction of all of the Required Improvements by December 31,2019, as provided in section 2.3 of the agreement (the "Completion Date of Required Improvements"). The Required Improvements were deemed complete upon the issuance of a final certificate of occupancy for the Required Improvements by the Planning and Development Department. Owner did construct a minimum of 151,000 square feet of development as evidenced by a temporary or permanent certificate of occupancy consisting of(a)a minimum of 138,000 square feet of residential rental space containing at least 152 dwelling units (the "Apartments") comprising at least twenty percent (20%) of the total Gross Floor Area; and (b) a minimum of 13,800 square feet of office, restaurant,entertainment,retail sales and service uses,and/or live/work space(the"Retail Spaces"); and (c) a multi-level parking garage to accommodate the apartment residents and retail customers, having Construction Costs upon completion of at least$20,000,000(the"Required hmprovements") by the Completion Deadline as provided in Section 2.2 and 2.3 of the agreement. C. The Agreement shall be amended to correct section 1 ("Definitions");and section 4. ("Tax Abatement"). NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,the City and Owner hereby agree as follows: Page 1 Amendment No.1 to CSC No.48635 Neighborhood Empowerment Zone Tax Abatement Agreement with Criterion Race Street I,LLC r u 1. Section 4 of the Agreement (Tax Abatement) is hereby amended to allow the Abatement Beginning Date to coincide with the first year of the Compliance Auditing Term. Both to begin January 1,2020 and end December 31,2029. 2. All terms and conditions of the Agreement that are not expressly amended pursuant to this Amendment shall remain in full force and effect. EXECUTED as of the last date indicated below: CITY OF FORT WORTH: By:��.,...r.� C.+L----- Date: !v1/fi12ozo Fernando Costa Assistant City Manager CRITERION RACE STREET I,LLC By: CPC RS Investors, LLC, a Delaware limited liability company, its Member By: CPC-T Race Street, LLC, a Delaware limited liability company, its Managing Member By: CPC-T, L.P., a Delaware limited partnership, its Member By: CPC GP,LL�C/,�a D�jli ite liability company, its General Partner By: Name: W. Title: Date: to Y, APPR VED AS TO FO ND LEGALITY: ` y Melinda Ramos AtS by: Sr. Assistant City Attorney Approved by M&C 19-0148 M� J. a , city Secretary October 15,2019 Page 2 Amendment No. l to CSC No.48635 Neighborhood Empowerment Zone Tax Abatement Agreement with Criterion Race Street 1,LLC OFFOCOAL RECORD! CITY SECRETARY FT. WORTH,ii is M&C Review Official CITY COUNCIL AGENDA FORT DATE: 9/10/2019 REFERENCE M&C 19- LOG 19RACESTREETPROJECTAMENDMENT NO.: 0148 NAME: CODE: C TYPE: NON- PUBLIC NO CONSENT HEARING: SUBJECT: Authorize Amendment to Neighborhood Empowerment Zone Tax Abatement Agreement (City Secretary Contract No. 48635) with 2925 Race, LLC, to Amend the Terms of the Abatement to Allow the Abatement Beginning Date to Coincide with the First Year of the Compliance Auditing Term (COUNCIL DISTRICT 9) (Continued from a Previous Week) RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an Amendment to Tax Abatement Agreement (City Secretary Contract No. 48635) with 2925 Race, LLC, to amend the Terms of the Abatement to allow the Abatement Beginning Date to coincide with the Compliance Auditing Term. DISCUSSION: On August 2, 2016, the Fort Worth City Council authorized approval of a ten-year tax abatement with 2925 Race LLC through the Neighborhood Empowerment Zone Program, by Mayor and Council Communication (M&C C-27846). The City entered into the Abatement Agreement (City Secretary Contract Nos. 48635 &48635-CA1) with subsequent assignment to Criterion Race Street I, LLC (Owner). The Terms of the Agreement include a Compliance Auditing Term which starts January 1 of the year following the year in which a final certificate of occupancy is issued for the Required Improvements. The Abatement Beginning Date starts January 1 of the year following the year that the Compliance Auditing Term begins.Since the final certificate of occupancy was issued in 2019, compliance with the current contract would have the Compliance Auditing Term start January 1, 2020 and the Tax Abatement would start January 1, 2021. The Compliance Auditing Term generally gives the Owner time to lease set aside units which would be required in the Agreement. However, the Owner opted to pay an annual sum equal to $200.00 for each rental residential unit located on the Premises to the Fort Worth Housing Finance Corporation (FWHFC) and has requested the Compliance Auditing Term and Abatement Beginning Date to coincide. This would change the start of the abatement and the annual payment to the FWHFC to January 1, 2020. All other terms of the contract will remain the same. This project is located in Council District 9. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations an estimated $1,971,530.00 in property taxes will be abated over the ten year period from 2020-2029. This amount will be included in the City's ten year financial forecast. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) FROM i http://apps.cftvnet.org/council_packet/me review.asp?ID=27297&councildate=9/10/2019[6/10/2020 5:07:25 PM] M&C Review Fund I Department I Account I Project Program Activity I Budget I Reference# I Amount ID ID Year (Chartfield 2) Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Sonia Singleton (8187) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS Race Street Project Map-2.pdf http://apps.cAvnet.org/council_packet/mc review.asp?ID=27297&councildate=9/10/2019[6/10/2020 5:07:25 PM]