HomeMy WebLinkAbout(0028) M&C 21-0575City of Fort Worth, Texas
Mayor and Council Communication
DATE: 08/17/21 M&C FILE NUMBER: M&C 21-0575
LOG NAME: 19NEZBERKELEYASSIGN3
SUBJECT
(CD 9) Authorize Execution of Consent to Assignment of City Secretary Contract No. 46559, a Tax Abatement Agreement with Crest Berkeley TIC
I, LLC, Crest Berkeley TIC II, LLC and Crest Berkeley TIC III, LLC, to CH Realty IX-Knightvest MF FW Berkeley Owner, LP
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Consent to Assignment of City Secretary Contract No. 46559, a Tax
Abatement Agreement between the City and Crest Berkeley TIC I, LLC, Crest Berkeley TIC II, LLC and Crest Berkeley TIC III, LLC, to CH Realty
IX-Knightvest MF FW Berkeley Owner, LP, in conjunction with the sale of the multi -family project located at 2521 Frazier Avenue in the
Berry/University Neighborhood Empowerment Zone.
DISCUSSION:
On February 4, 2014, the City Council approved a five-year Tax Abatement Agreement (Agreement) with Park Ridge Multi -Family L.P., assigned to
affiliate, Berkeley Apartments, Phase II (Company) related to the construction of a multi -family project with 310 residential units located at 2521
Frazier Avenue in the Berry/University Neighborhood Empowerment Zone Mayor and Council Communication (M&C C-26660), City Secretary
Contract No. 46559 as amended by City Secretary Contract No. 46559-CA1 and 26559-A1. On September 26, 2017, the City Council approved
an assignment of the Agreement to Crest Berkeley TIC I, LLC, Crest Berkeley TIC II, LLC, and Crest Berkeley TIC III, LLC (Crest Berkeley), Mayor
and Council Communication (M&C C-28394).
Crest Berkeley now wishes to sell the development to CH Realty IX-Knightvest MF FW Berkeley Owner, LP, (Purchaser). As part of the proposed
sale, Crest Berkeley has requested an assignment of the Agreement to the Purchaser, so that the Purchaser may continue to receive the tax
abatement for the remainder of the term of the Agreement. Under the Agreement, the Company is prohibited from assigning the Agreement to
another party without the City Council's consent. In order to facilitate the transaction, a Consent to Assignment Agreement between the City, the
Company and the Purchaser will be required.
All the required improvements have been constructed as set forth in the Agreement, and the Purchaser will be required to meet all ongoing
obligations under the Agreement. The City will continue to receive the public benefits resulting from development of this project.
The multi -family project is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION / CERTIFICATION:
The Director of Finance certifies that upon approval of the Consent to Assignment of the current Tax Abatement Agreement, a loss of an estimated
$627,488.44 in property tax revenue may occur over the two years left in the abatement period from 2022 to 2023. This reduction in revenue will be
incorporated into the City's long term financial forecast upon the Consent to Assignment of the Tax Abatement Agreement being officially granted.
Submitted for City Manager's Office by. Fernando Costa 6122
Originating Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316