HomeMy WebLinkAboutContract 51088-CA1 CITY SECRETARY
C3t"!TRACT NO.
CONSENT TO ASSIGNMENT OF
TAX ABATEMENT AGREEMENT
2ti (CITY SECRETARY CONTRACT NO. 51088)
This CONSENT TO ASSIGNMENT O F CITY SECRETARY C O N T R C T
N O. 51088 ("Consent") is made and entered into by and between the CITY OF VORT
WORTH ("City"), a home rule municipal corporation organized under the laws of the S ate of
Texas, and JCO Properties, LP ("Assignor or Owner"), and JCO Storage, L.L.C.
("Assignee").
The following introductory provisions are true and correct and from the basis of this
Consent:
A. On or about March 6, 2018, the City and JCO Properties, LP entered into that certain Tax
Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 1088
(the "Agreement"). Under the Agreement, JCO Properties, LP agreed to construct two
commercial buildings with approximately 104,000 total square feet for use as an interior and
exterior storage facility(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 La (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. Assignor has sold its interest in the Land and Required Improvements to Assignee ind to
assign all right, title and interest in the Agreement to Assignee.
NOW THEREFORE,in consideration of the mutual terms and conditions herein con ained
and other good and valuable consideration, the receipt and sufficiency of which are ereby
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 August 27,2018, ("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 Eff ctive
Consent Date Assignee will comply with all duties and obligations of Owner set f rth in
the Agreement.
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 Sections 2 and 3 of the Agreement(ii) any Event of Default set
forth in Section 4 of the Agreement.
Consent to Assignment of Tax Abatement Agreement#51 g g 088 ®FFOCo AL RECORD
from JCO Properties, LP to JCO Storage, L.L.C. CITY SECRETARY
Approved by M&C C-28600 on March 6, 2018
1 FT WORTH,TX
4. Nothing in this Consent shall be deemed to grant Assignee any rights under the Agr lement
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 meanings
assigned to them in the Agreement.
IN WITNESS WHEREOF,the parties have executed this Assignment as of the Effective C nsent
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 2osta,
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 instrumeld., and
acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TE S, 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 o?"( clay of
2021.
SELENA ALA
T. ,�,� P, Notary Public, State of Texas
Public in and for ;�;'y N= t a
1 Qr Comm. Expires 03 3 202
the State of Texas '��,;�;,`,�•�� Notary ID 132422528
� TQ71�v'-.
T ST: �. �'`
v
onald P. Gonzales,Act City Secretary `
' ...•.
I RECORD
REC
Consent to Assignment of Tax Abatement Agreement#51088 CITY OFFICIAL SECRETARY
from JCO Properties, LP to JCO Storage, L.L.C. WORTH,Approved by M&C C-28600 on March 6, 2018 X
2
APPROVED AS TO FORM AND LEGALITY:
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-28600
ASSIGNOR: JCO Properties,LP
a Texas limited partnership
By: JCO Management, LLC
A Texas limited liability company,
its general partn r
By:
J ourter, Director
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME,the undersigned authority,on this day personally appeared Jerry D. Courter,Director
of JCO Management, LLC, a Texas Limited Liability Company and General Partner of JCO
Properties, LP,known to me to be the person whose name is subscribed to the foregoing instn ment,
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 JCO Management,LLC, General
Partner of JCO Properties, LP.
GIV N UNDER MY HAND AND SEAL OF OFFICE this 3,� day of
21
I
r
Notary is in and or
the State of Texas ►PY SARAN J ODLE
i Notary ID#6215320
My Commission Expires
'F ov t November 8, 2023
OFFICIAL. RECORD
Consent to Assignment of Tax Abatement Agreement#51088 CI�TI� ECRETARIf
from JCO Properties, LP to JCO Storage, L.L.C. 1; 1AYORTFd TX
Approved by M&C C-28600 on March 6, 2018
3
ASSIGNF_.F_.: JCO STORAGE, L.L.C.
a Texas 'mited lia ' ty company
By:
t7. (fUrter, Manager
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME,the undersigned authority, on this day personally appeared Jerry D.Courter,Manager
of JCO Storage, L.L.C., a Texas limited liability company, 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 JCO Storage, L.L.C.
GIV N UNDER MY HAND AND SEAL OF OFFICE this y of
0
Notary lic in an o
the State of Texas is
sar:AN oo]Expires
Notary ID#62My Commission November 8,
Consent to Assignment of Tax Abatement Agreement#51088 OFFICIA4 RECORD
from JCO Properties, LP to JCO Storage, L.L.C. CITY SECRETARY
Approved by M&C C-28600 on March 6, 2018 FT. WORTH,7X
4
M&C Review
Official
CITY COUNCIL AGENDA FoRTWORT11
COUNCIL ACTION: Approved on 3/6/2018
DATE: 3/6/2018 REFERENCE NO.: **C-28600 LOG NAME: 195320WVICKERY
CODE: C TYPE: CONSENT PUBLIC HEARING: NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with JCO Properties,
L.P., for the Construction of Two Commercial Buildings for Use as an Interior and
Exterior Storage Facility Located at 5320 West Vickery Boulevard in the Como/Sunset
Heights Neighborhood Empowerment Zone (COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement
Agreement with JCO Properties, L.P., for the construction of two commercial buildings for use as
an interior and exterior storage facility located at 5320 West Vickery Boulevard in the
Como/Sunset Heights Neighborhood Empowerment Zone, in accordance with the Neighborhood
Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
JCO Properties, L.P., (Property Owner) is the owner of the property described as Lot 2, Block 1 R
Vickery Place Addition and Lots 2-10, Block 2, Harlem Hills, an addition in the City of Fort Worth,
Tarrant County, Texas according to the Plats recorded in Cabinet A, Slide 12059 and Volume
388-6, Page 122 of the Plat Records, Tarrant County, Texas at 5320 West Vickery Boulevard,
Fort Worth, Texas. The property is located within the Como/Sunset Heights Neighborhood
Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$4,405,000.00 to construct interior
and exterior storage facility consisting of two buildings with a combined total of approximately
104,000 square feet (Project). The Neighborhood Services Department reviewed the application
and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ
Municipal Property Tax Abatement. The NEZ 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 NEZ.
Upon 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, 2019 at
the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in
February 2018 for the property as follows:
Pre-Improvement TAD Value of Improvements F 0.00
Pre-Improvement Estimated Value of Land $270,921.00
Total Pre-Improvement Estimated Value I $270,921.00
The municipal property tax on the improved value of Project after construction is estimated in the
amount of$36,782.00 per year for a total amount of$183,909.00 over the five-year
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=25630&councildate=3/6/2018[05/24/2018 10:42:10 AM]
M&C Review
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.
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that 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 3.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations approximately
$183,909.00 in property taxes will be abated over the five-year period from 2019-2023. This
revenue loss will be incorporated into the City's five-year financial forecast.
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year I (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference # Amount
ID I ID I I Year I (Chart field 2)
Submitted for City Manager's Office bv: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
5320 W Vickery Maa.a
Form 1295 Certificate 5320 WVickerv.pdf
Site Plan and Elevations.pdf
http://apps.cfwnet.org/council_packettme review.asp?ID=25630&councildate=3/6/2018[05/24/2018 10:42:10 AM]
e
M&C Review
CITY Co >rraL AGENDA F{IRT I
,r
COUNCIL ACTION: Approved on 6/26/2018
DATE: 6/26/2018 REFERENCE NO.: C-28761 LOG NAME: 195230WVICKERY
CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO
SUBJECT: Authorize Amendment to Mayor and Council Communication C-28600 to Authorize
Execution of a Five-Year Tax Abatement Agreement with JCO Properties, L.P., for the
Construction of Two Commercial Buildings for Use as an Interior and Exterior Storage
Facility to Correct Location to 5230 and 5234 West Vickery Boulevard in the
Como/Sunset Heights Neighborhood Empowerment Zone (COUNCIL DISTRICT 3)
RECOMMENDATION:
It is recommended that the City Council authorize an amendment to Mayor and Council
Communication C-28600 to authorize the execution of a Five-Year Tax Abatement Agreement with
JCO Properties, L.P., for the construction of two commercial buildings for use as an interior and
exterior storage facility to correct location to 5230 & 5234 West Vickery Boulevard in the
Como/Sunset Heights Neighborhood Empowerment Zone, in accordance with the Neighborhood
Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
On March 6, 2018, City Council authorized execution of a Five-Year Tax Abatement Agreement
with JCO Properties, L.P., for the construction of two commercial buildings for use as an interior
and exterior storage facility. The property was incorrectly listed as 5320 West Vickery Boulevard,
Lot 2, Block 1 R Vickery Place Addition and Lots 2-10, Block 2, Harlem Hills, an addition in the City
of Fort Worth, Tarrant County, Texas according to the Plats recorded in Cabinet A, Slide 12059
and Volume 388-6, Page 122 of the Plat Records, Tarrant County, Texas.
The Fire Department Planning & Addressing Division has given an address assignment and
change to the buildings as 5230 & 5234 West Vickery Boulevard, Lot 2, Block 1 R, Vickery Place
Addition, an addition in the City of Fort Worth, Tarrant County, Texas according to the Plat
recorded in Cabinet A, Slide 12059 of the Plat Records, Tarrant County, Texas. The property is
located within the Como/Sunset Heights Neighborhood Empowerment Zone (NEZ).
JCO Properties, L.P., (Property Owner) plans to invest an estimated amount of$4,405,000.00 to
construct interior and exterior storage facility consisting of two buildings with a combined total of
approximately 104,000 square feet (Project). The Neighborhood Services Department reviewed
the application and certified that the Property Owner and Project met the eligibility criteria to
receive a NEZ Municipal Property Tax Abatement. The NEZ 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 NEZ.
Upon 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, 2019 at
the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in
February 2018 for the property as follows:
http://apps.cfwnet.org/council_packettmc_review.asp?ID=25994&councildate=6/26/2018[07/27/2018 11:05:55 AM]
M&C Review
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land $270,921.00
Total Pre-Improvement Estimated Value $270,921.00
The municipal property tax on the improved value of Project after construction is estimated in the
amount of$36,782.00 per year for a total amount of$183,909.00 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.
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that 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 3.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations approximately
$183,909.00 in property taxes will be abated over the five-year period from 2019-2023. This
revenue loss will be incorporated into the City's five-year financial forecast.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Sarah Odle (7316)
---------------
ATTACHMENTS -
5230 5234 W Vickery Map.pdf
Form 1295 Certificate 5230-5234 WVickery.pdf
Site Plan and Elevations.pdf
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=25994&councildate=6/26/2018[07/27/2018 11:05:55 AM]