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Home My WebLink AboutContract 50882-A1 f ITY SECRETARY n AMENDMENT NO. 1 TO TAX ABATE LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 'V�� FEB 16 2022 crry0Fr0RT (CITY SECRETARY CONTRACT NO. 50882) Myron* 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 PMA FW Presidio, LLC ("Owner"). The following introductory provisions are true and correct and for the basis of this Amendment: A. As of April 14, 2018 the City and Owner entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 50882 (the "Agreement") with subsequent assignment to PMA FW Presidio, LLC dated July 9, 2018, CSC No. 50882-CAL Under the Agreement, Owner agreed, to construct a 138 Unit Multi-Family Apartment Complex(the"Project",as more specifically defined in the Agreement)on certain real property located in the 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 within thirty-six months from the date of Council approval as provided in section 1.3 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 13 8 unit multi-family apartment complex consisting of four three story apartment buildings with a mix of units and having Construction Costs, excluding land,upon completion of $18,442,000.00 for the Required Improvements by the Completion Deadline as provided in Section 1.1 and 1.2 of the agreement. C. The Agreement shall be amended to correct section 2.4 ("Terms"); and section 3.3. ("Provision of Information"). NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged,the City and Owner hereby agree as follows: 1. Section 2.4 of the Agreement (Terms) 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, 2022 and end December 31, 2026. 2. Section 3.3 of the Agreement (Provision of Information) is hereby amended to reiWCE u correct language: OFRCIAL RECORD Page 1 MY SECRETARY Amendment No. 1 to CSC No.50882 Neighborhood Empowerment Zone Tax Abatement Agreement with PMA FW Presidio,LLC � h o WORTH, T h, On or before March 1 following the end of every year, Owner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. This information shall include,but not be limited to,the following: 3.3.1. The number and dollar amounts of all the Construction Costs and subcontracts awarded on the Project. 3.3.2. Evidence of the Annual payment to the FWHFC of$200.00 for each rental residential unit located on the property, and compliance with the required ADA units . Owner shall supply any additional information requested by the City in its evaluation of Owner's compliance with each of the terms and conditions of this Agreement. Failure to provide all information required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3. 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: PMA FWD IO,LLC By: _---- By: Fernando Costa Peter Aberg Assistant City Manager Manager Date: 2�6/2°2Z Date: OFFICIAL RECORD CITY SECRETARY Page 2 FT. WORTH,TX Amendment No. 1 to CSC No.50882 Neighborhood Empowerment Zone Tax Abatement Agreement with PMA FW Presidio,LLC APPROVED AS TO FORM AND LEGALITY: By: Melinda Ramos Sr. Assistant City Attorney Approved by M&C 21-0783 October 12, 2021 abyo nek , City Sec Goodall OFFICIAL RECORD CCTV SECRETARIV Page 3 Amendment No. 1 to CSC No.50882 Neighborhood Empowerment Zone Tax Abatement Agreement with PMA FW Presidio,LLC 0 V .a r� O f m � I a E 4-. 0 � a I d Ll' Af .0 Q� 1� d Z I � C t CV I�Q�o] ryry d c N Er a �4 C V7 p S I LL M&C Review CITY COUNCIL AGENDA FoRTWOR7H Create New From This M&C DATE: 10/12/2021 REFERENCE M&C 21-0783 LOG NAME: 19PRESIDIOAMEND NO.. NOW PUBLIC CODE: C TYPE: CONSENT HEARING: NO SUBJECT: (CD 9) Authorize Amendment to Tax Abatement Agreement (City Secretary Contract No. 50882) with PMA FW Presidio, 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 RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute an Amendment to Tax Abatement Agreement (City Secretary Contract No. 50882) with PMA FW Presidio, LLC, to amend the Terms of the Abatement to allow the Abatement Beginning Date to coincide with the Compliance Auditing Term. DISCUSSION: On April 10, 2018, the Fort Worth City Council authorized approval of a five-year tax abatement with Scenic Race, LLC, by Mayor and Council Communication (M&C C-28659). The City of Fort Worth entered into the Tax Abatement Agreement (Agreement) (City Secretary Contract Nos. 50882 & 50882-CA1) with subsequent assignment to PMA FW Presidio, 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. 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 2022. 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 Tax Abatement Amendment, a loss of an estimated $628,014.30 in property tax revenue may occur over the five year period. This reduction in revenue will be incorporated into the long term financial forecast upon the Tax Abatement being officially granted. TO Fund Department Account Project Program Activity Budget Reference# Amount ID I ID I I I Year I (Chartfield 2) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=29331&councildate=10/12/2021[1/19/2022 1:17:58 PM] M&C Review FROM Fund Department Account Project Program Activity Budget Reference# Amount ID I I ID I I Year I (Chartfield 2) Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Victor Turner(8187) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS Form 1295-PMA FW Presidio LLC (003)rit (CFW Internal) Map for Council Presidio Proiect.pddf (Public) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=29331&councildate=10/12/2021[1/19/2022 1:17:58 PM]