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Home My WebLink AboutContract 45196-CACONSENT TO ASSIGNMENT OF CbTY ZCRETARV COM' rNO. y5)9lifCOI TAX ABATEMENT AGREEMENT (CITY SECRETARY CONTRACT NO. 45196) This CONSENT TO ASSIGNMENT O F CITY SECRETARY CONTRACT N O. 45196 ("Consent") 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 CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC ("Assignor or Owner"), and CCLG Partners, LLC ("Assignee"). The following introductory provisions are true and correct and from the basis of this Consent: A. On or about September 24, 2013, the City and CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 45196 (the "Agreement"). Under the Agreement, CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC agreed to construct a strip mall for retail and restaurant use (the "Required Improvements") on certain land in the City (the "Land") in return for a 5-year real property tax abatement on improvements located on the Land (the "Abatement"), all as more specifically set forth in the Agreement. The Abatement was granted pursuant to the City's Neighborhood Empowerment Zone Policy ("NEZ Policy"). B. Section 5 of the agreement allows an assignment to CCLG Partners, LLC or an Affiliate without the prior consent of the City Council. C. Assignor has sold its interest in the Land and Required Improvements to Assignee and to assign all right, title and interest in the Agreement to Assignee. 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. The City hereby consents to an assignment by Assignor to Assignee of all right, title and interest granted to Assignor by the Agreement, effective as of September 24, 2013, ("Effective Consent Date"). 2. The City consents to such assignment expressly upon the promise and covenant by Assignee, and Assignee hereby promises and covenants to the City that as of the Effective Consent Date Assignee will comply with all duties and obligations of Owner set forth in the Agreement. 1 Consent to Assignment of Tax Abatement Agreement #45196 , :711.7@rcrEiLE;;;„. 1 L\?b ) from CCLG Partners, LLC, as managing agent forb E 't'. Texas Reverse Exchange Holding Company, LLC to CCLG Partners' L i 1 .r, ) , it , Approved byM&C C-26479 on September 24, 2013 pp p RECEIV-- 3'4tO 1 3. Assignee understand and agrees that no act or omission of Assignor, whether on, before or after the Effective Consent Date, will serve to mitigate (i) any Abatement Amounts, Terms and Conditions set forth in Section 2 of the Agreement (ii) any Event of Default set forth in Section 4 of the Agreement. 4. Nothing in this Consent shall be deemed to grant Assignee any rights Agreement that are an addition to or greater than those of the Owner thereunder 5. All terms in this Consent that are capitalized but not defined shall have the assigned to them in the Agreement. under the meanings IN WITNESS WHEREOF, the parties have executed this Assignment as of the Effective Consent Date. CITY OF FORT WORTH Fernando Costa Assistant City Manager STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, 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 2014. tary Public in and for the State of Texas ` 'cA • t • • a• l'�� • t.0* .• - • w %«• °;0:.. SiMm- EVONIA DANIELS Notary Public, State of Texas My Commission Expires July 10, 2017 Consent to Assignment of Tax Abatement Agreement #45196 from CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC to CCLG Partners, LLC Approved by M&C C-26479 on September 24, 2013 2 APPROVED AS TO FORM AND LEGAL 1_ Melinda Ramos Sr. Assistant City Attorney M & C: C-26479 ASSIGNOR: CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC Name: ' Jeffrey A. Rattikin, President ASSIGNEE: CCLG Partners, LLC by Site Property Company, LLC, its Director Name: Lyavid D. Draper, Director STATE OF TEXAS § COUNTY OF TARRANT § Uri'? 4EcriQl-nor IT-3:170 171;z119 n BEFORE ME, the undersigned authority, on this day personally appeared Jeffrey A. Rattikin, President of Texas Reverse Exchange Holding Company, LLC, 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. GIVEN LMIDER MY HAND AND SEAL OF OFFICE this IA day of (')tcetnkx ,2013. kkittilk &(rilifriCtAi'L Notary Public in and for the State of Texas Consent to Assignment of Tax Abatement Agreement # 451_9‘r, from CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC to CCLG Partners, LLC Approved by M&C C-26479 on September 24, 201 3 3 1 ` ANY � i��i '� f ' :'''. WENDI EDDLEMAN - ,• MY COMMISSION EXPIRES ....•;.s May 24, 2015 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared David D. Draper, Director of Site Property Company, Director for CCLG Partners, LLC, 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. r GIVEN UNDER MY HAND AND SEAL OF OFFICE this �c,`,Q/r V `,Q/r , 2013. lAiMMALkJ Notary Public in and for the State of Texas c• L Consent to Assignment of Tax Abatement Agreement # 1451 9 6 from CCLG Partners, LLC, as managing agent for Texas Reverse Exchange Holding Company, LLC to CCLG Partners, LLC Approved by M&C C-26479 on September 24. 2013 4 M&C Review et Official site of the City of Fort Worth, Texas Crry COUNCIL AGENDA •. IIIY LL L • I .. Y•.•..L. Ito . •1.1111 • — COUNCIL ACTION: Approved on 9/24/2013 � 11 r.. l •...I rl • ... I. .1 •1.6JY u. r... • •.I EPP I. DATE: 9/24/2013 REFERENCE NO.: CODE: SUBJECT: C TYPE: C-26479 NON - CONSENT LOG NAME: 17NEZ301 WNORTHSIDE PUBLIC HEARING: NO Authorize Five Year Tax Abatement Agreement with Texas Reverse Exchange Holding Company, LLC, a Texas Limited Liability Company, as Exchange Accommodation Titleholder for CCLG Partners, LLC, a Texas Limited Liability Company, for the Construction of a Strip Mall for Retail and Restaurant Use at 301 W. Northside Drive and 1215 N. Houston Street in the Northside Neighborhood Empowerment Zone (COUNCIL DISTRICT 2) IUL . .l I I. J i.. II M. al.. Jl .f• JI I.. • .3. I I.V. •1 l l YL I.I.I I Ll •.. I I • •.. I! kt— RECOMMENDATION: It is recommended that the City Council authorize a five-year Tax Abatement Agreement with Texas Reverse Exchange Holding Company, LLC, a Texas Limited Liability Company, as Exchange Accomodation Titleholder for CCLG Partners, LLC, a Texas Limited Liability Company, for the Construction of a Strip Mall for Retail and Restaurant Use at 301 W. Northside Drive and 1215 N. Houston Street in the Northside Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Texas Reverse Exchange Holding Company, LLC, a Texas Limited Liability Company, as Exchange Accomodation Titleholder for CCLG Partners, LLC, a Texas Limited Liability Company (Property Owner), is the owner of the property described as Lots 16, 17 and 18, Block 60, North Fort Worth Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 63, Page 147, Deed Records, Tarrant County; Save and Except that a portion of Lot 16, Block 60 was conveyed to the City of Fort Worth by Deed recorded in Volume 3094, Page 47, Deed Records of Tarrant County, Texas, 301 W. Northside Drive and 1215 N. Houston Street, Fort Worth, Texas. The property is located within the Northside Neighborhood Empowerment Zone (NEZ) The Property Owner plans to invest an estimated amount of $675,000.00 to build a 4200 square foot strip mall with three spaces for restaurant and retail development (Project). The Housing and Economic Development Department reviewed the application and certified that the Project met the eligibility criteria to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and Basic Incentives includes a five-year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the N EZ. U pon execution of the Agreement, the total assessed value of the improvements used for calculating municipal property tax will be frozen for a period of five years starting January 2014. At this time Tarrant Appraisal District has the improvements on the property valued in the amount of $1,000.00. The owner has demolished the existing building on the property so the pre - improved value for tax abatement purposes will be $0.00. FoflT%YbiwJ http://apps.cfivnet.org/council packet/mc_review.asp?ID=18989&councildate=9/24/2013[09/24/2013 5:31:06 PM] M&C [Review The Municipal Property Tax Abatement on the improved value of the Project after construction is estimated in the amount of $5,771.25 per year for a total amount of $28,856.25 over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the Tarrant Appraisal District appraised value of the property. In the event of a sale of this property, the Tax Abatement Agreement may be assigned to an affiliate without the consent of the City Council or to a new owner with City Council approval, only if the new owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. This property is located in COUNCIL DISTRICT 2. FISCAL. INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations of City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manaaer's Office bv: Oriainatina Department Head: Additional Information Contact: ATTACHMENTS 301 W Northside-1215 N Houston Man.oW Elevation and Site Plan.odf Fernando Costa (6122) Cynthia Garcia (8187) Robert Sturns (8003) Sarah Odle (7316) http://apps.cfwnet.org/council_packet/mc review.asp?ID-18989&councildate=9/24/2013 [09/24/2013 5:31:06 PM]