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HomeMy WebLinkAboutContract 42665-A1 CITY S _0 CONTRACT NO. STATE OF TEXAS § COUNTY OF TAR RANT § AMENDMENT NO. I TO CITY SECRETARY CONTRACT NO. 42665 TAX ABATEMENT AGREEMENT BETWEEN CITY OF FORT WORTH AND LANCASTER PROPERTIES, LLC This, AMENDMENT NO. I TO CITY SECRETARY CONTRACT NO 42,665 ("Amendment") is entered 'Into by and between the CITY OF FORT WORTH (the "City"), a home rule, municipality organized under the laws of'the State of Texas, and LANCASTER PROPERTIES, LLB C (''Company""), a Texas limited liability company. The City and Company hereby agree that the following statements are true and correct and constitute the basis upon which the City and Company have entered into this Amendment: A, The City and Company previously entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 42665 (the "Agreement"). Under the Agreement, the City agreed to abate certain ad valorem real property taxes on 'improvements proposed to be constructed on property owned by Company (identified in Exhibit "A"' of the Agreement and defined as the "Land") in return for Company's commitment to construct an apartment complex on that property consisting of at least 315 units, as more specifically outlined in the Agreement (the "Required Improvements:"). B,. The Agreement requires that Company complete all Required, Improvements by March 31, 2 13. Due to a higher-than-expected water table on the Land, Company had to implement design, engineering and construction spewications for the 'Required Improvements that caused delays in the construction schedule. As a result, Company has requested that the City consent to an extension of the deadline for completion of the Required Improvements until October 31, 20113. 6 C. The Agreement also requires that at least ten percent (10%) of all the apartment units be reserved exclusively for lease as affordable housing units, as more s *f peci ically set forth in the Agreement, and that at least eight (8) of these units, must be fully handicap accessible. In order to reflect the originally negotiated intent 0 parties,, City staff and Company agree that this Agreement should be ame�nde,ter D that at least eight (8) of the apartment units, will be fully handicap accessible, RECORD (3) of these units reserved for lease as,affordable housing units. CITY'SECRETARY' Page I FTm,WORTH,1rX Amendment No., I to CSC No.42,665 Tax Abatement Agreement between City of Fort Worth and Lancaster Properties, Lt.0 .......... D, This Amendment is authorized under § 312.208, of the Texas Tax Code because (i) 'the provisi ons of this Amendment could have been included in the original Agreement and (1`0 this Amendment has been entered into frill wing the same procedure it which the Agreement was approved and executed. NOW THEREFORE, the City and Company, for mid yin consideration of the terms and conditions set forth herein,, do hereby contract, covenant and agree as fo�llows.- 1, The second sentence of Section 1.2 of the Agreement (Completion Date of Required Improvements) is hereby amended to read as follows-, "'The Completion Date must occur on or before October 31, 2013 (the "Completion Deadline")." 2* Section 1.4 of the Agreement (Affordabile/Accessible Housing Set Acme) is hereby amended to read as follows: 1.4. Affordable/Accessible Housing.Set-Aside. From and at all times after the Completion Date, (i), at least ten percent (10%) of all Apartment Units, regardless of the total number of such Apartment Units within the Required Improvements and regardless of the owner of record of any such Apartment Units, shall be reserved exclusivel elusively for lease to qualifying households whose adjusted 'incomes do not exceed the United States Department of Housing and Urban Development's ("HUD") then-current eighty percent (80%) 'income limits for the art Worth Arlington, TX HUD Metro FMR Area at rents that do, not exceed thirty percent (30%) of such adjusted *incomes the "Affordable Housing 'Units"); (11) at least eight (8) Apartment Units shall be fully handicap accessible- and (111), at least three (3), of the Apartment Units that are fully handicap accessible shall also be Affordable Housing Units (collectively, the "Affordable/Accessible Housing Requirement Company will cooperate with the City's 1-lousing and Economic Development Department in reasonably publicizing the availability of the Affordable Housing Units. For Company's, reference, HUD's 8,0%1 income limits, for the Fort Worth-Arl ington, TX HUD Metro FMR area and an example of the calculation of rent limits biased on such income limits, are published annually by HUD (see www.hu,d.gov and www.hud user.o,rg). 3. Section 3.3.6 of the Agreement (Annual Affordable/Acces,sible Housing Report) is hereby amended to read as follows: Page 2 Amendment No. I to CSC No.42665 'Fax Abatement Agreement between C"ity of 1"'ort Worth and Lancaster Properties,LLC ioNrywpp 3.3.6. Annual Affordable/Accessible using Report, On or before February I following the end of each year of the Compliance Auditing Term, in order to determine whether, Company complied with the Affordable/Accessible Housing Requirement in the previous calendar year, Company will provide the Director with a report in a form reasonably acceptable to the City that sets forth (0 the total number of Apartment Units, within the Required Improvements; (ii) -the total number of Apartment, Units that are fully, handicap accessible; (fil) the total number of' Affordable Housing Units; (iv) the total number of Affordable Housing Units that are fully handicap accessible; (v) the number of Apartment Units that were under lease at any time durin g, the previous calendar year; (vi) the number of Apartment Units that are ffilly handicap accessible and that were under lease at any time during the previous calendar year; (vii) the number of Affordable Housing Units,that were under lease at any time during the previous calendar year- (viii) the number of Affordable Housing Units that are fully handicap accessible and that were under lease at any time during the previous calendar year- and (ix) for each Affordable Housing Unit that was under lease at any time during the pre vious calendar year, sufficient documentation for the City to assess the adjusted income of the tenant leasing such Affordable Housing Unit and the amount of monthly rent paid by that tenant. 4. Capitalized terms used but not identified in this Amendment shall have the same meanings assigned to them ire the Agreement. 56 'Except as otherwise specifically amended in this Amendment, the Agreement shall remain in full force and effect. 6. This Amendment contains the final written expression of the City and Company withh respect to the subject matter hereof. This Amendment may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EX-ECUTED as of the last,date 'Indicated below: [SIGNATURES IMMEDIATELY FOLLOW ON NEXT PAGE] Page 3 Amendment No. I to CSC No.,42665 Tax Abatement Agreement,between City of Fort Worth and Lancaster Properties,I.I. ' CITY OF' F'O,RT WORTH-. A C7 By,: By*- A� 1ZLIL- /. Fernando Costa Name- leo,-) Assistant City Manager Title.- CY , *(3 000 004t Date: 20w� 5/a Date: 0 0 N." 0 'IV 0 0 APPROVED AS TO FORM AND LEGALITY: 0, 0000000 AIL S eneBy* Peter Vaky Deputy City Attorney M&C 2 M 2 2, 2, STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authon*ty, on this day personally appeared Fernando Costa,, Assistant City Manager of the CITY 01F FORT WORTH, a municipality organi*zed under the laws of the State of'Texas, 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 CITY OF FORT WORTH, that he was duly authorized to per�form the and that he executed the same as,the act of the CITY OF FORT WORTH for the purposes,and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2013. Ael otaryv Public in end EVONIA S t State DANIEL of Texas Nly 0 OMMIS$10N EXPIRES July 10,2013 Notary's Printed Name oi:FwAL REcORD Page 4 CITY SECRETARY IM 1, Amendment No. I to CSC No.426615 F,T,WORTHs, Tax Abatement Agreement between City of Fort,Worth and Lancaster Properties,L,L.0 LANCASTER PROPERTIES, LLC a Texan limited fia 0i c pany r y` � Name.- tv 0 01� Title.- oil A Date.- ATTEST: By: STATE C0 1UN Y Off: al��*eared Jame I I oti Of ,,14= i�/A STER PROPERTIES, LLC'', known to me o t.e person and officer whose name is subscribed to the foregoing instrument,, and acknowledged to me that the same was his act and that s/he e execute . the same as the act e: :1 LANCASTER PERTIES LLC for the purposes and consideration therein expressed and in the capacity therein, stated. vEN MY HAND AND SEAL OF OFFICE this day of ,2 the State of my iss Expires ,0 m OF 01.40111 April NotarAs Printed Name :(:OIRD 4L RF Of CIO (;,Ty SFCIRETARY w Page 5 Amendment No. I to CSC No.42665, C For,)NORT"I 1rX Tax Abatement Agreement between City of Fort Worth and Lancaster Properties,LLC M&C Review Official site of the City of For,ti Wo�rthi,Te.,xas 1 FoRTWO "AN RADII', 5 tx(ffffoiwi�1w,"""", iivk A 11 Ill, lull 1101 11,11 11 REFERENCE I ANCASTER APTSAMEND1 DATE.- 8/21/2012 r% **C-�2�5,789 1.0'(3 'N"AlVIE.* 1'7T'AL-1-N NV.. CODE: C, T'Y P E: Cu"NSENT PUBLIC N UJO HEARING: SUBJECT: Authorize Execution, of Amendment No. 1 to Tax Abatement Agreement with Lancaster Properties,, LLC, to Cit%, Secretary Contract No. 42^065 for Extending t-he Completion I Y Deadline and Amending Certain Provisions Related to the Affordable/Accessible� Housing Requirement (COUINCI'L DISTRICT 9) RECOMMENDATION: it is recommended that the City Council authorize the execution of Amendment No. 1 to the Tax, Abatement Agreement with Lancaster Properties, LLC, to City Secretary Contract No. 42665 for extending the completion deadline and a,me�ndiing certain provisions related to the Affordabl!e/Accessible Housing Requ�irem�ent in the Agreement. Dl_$,,CU5SION: On September 27, 2011, (M&C C-25196) ,the City Council ap�proved a Five­Year Tax Abatement Agreement with Lancaster Properties,, LLC,, an affiliate of Locap Holdings, LLC, related tothe construction of a 315-unit multi-fam�ily apartment complex located on West Lancaster Avenue and Currie Street. The Agreement is a public document on file as City Secretary Contract No. 42665. Per the Agreement, Lancaster Properties, LLC, must complete the project by March 31 1, �2�01 3. The complex must also maintain ten, percent of the total units as quality, accessible, affordable housing. All ten percent must be rentable by tenants earning no more than eighty percent of the Area Median Income (AMI). The multi-family development must have eight fully handicap- accessible units. Due to a higher than expected water table, the developer had to, redesign and upgrade the drainage system�, under-the garage. In addition, all piers and concrete moorings needed to be c,ased and waterproofed. As a result of these modifications, Lancaster Properties, LLC, has approached Housing and Economic Development Department Staff to request an extension, of the completion deadline from, March 31, 2013 to October 31, 2013 and to revise lanig�uage in the Agreement regarding the number of fully handicap accessible units. As currently stated in the Agreement, aU handicap accessible units must meet the affordability requirements. The intent of the parties was to have eight fully handicap accessible uni'ts, but not all being affordable housing that meets,the Area Median Income (AM,I) Guidelines. Lancaster Properties, LLC, is building all eight units as handicap access,ible and is designating three of those units as affordable. Staff is agreeable to this change. All other terms: of the Agreement�will' remain unchanged. E1S_QAL INEQRMATIQ,N/CER11_EIQAI1QN: The Financ,ia,l Management Services, Director,certifies that this action will have no material effect on City funds. ht,tp://www.fortworthgov.org/councit—packet/mc--'revie!w.asp?'ID=l7257&councildate=8/21/2012[08/22/2012 4:08-16 PM] ........................................ M&C Review TQ F.,u!!!j:Mc!QQuntjCen,terS_ FIROK,F ,5ijb—m*tted I Zity-Manageea Qff icgi bv Fernando Costa (6122) Qc1g,joating Qeoartment Head; Jay Ch (5804) Additimal lnfQrmatl*Qn !QQntact Robert Sturns, (8003) Marguerite Allen (2235) AjTA!Q-EjKEN—TS R Exbi ginvg X atment Zog ZQ bilt Ap http://www.fortwo rthgov.org/councl 1__packet/m c—rev iew.asp'?ID=1725 7&councildate---8/21/2012[08/22/2012 41-0 :1 PM I .................. ............ ........... ............ ...........