HomeMy WebLinkAboutContract 57134-CA1 1 1
CONSENT TO ASSIGNMENT OF � C�SECRETARY
TAX ABATEMENT AGREEMENTZlL OA
(CITY SECRETARY CONTRACT NO. 57134)
This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT
NO. 57134 ("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 Jackson-Shaw/46Ranch, LLC ("Assignor or Owner"), and TREA JS South Fort
Worth Industrial Portfolio,LLC ("Assignee")
The following introductory provisions are true and correct and from the basis of this
Consent:
A. On or about February 15, 2021, the City and Jackson-Shaw/46Ranch, LLC entered into
that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary
Contract No. 57134 (the "Agreement"). Under the Agreement, Jackson-Shaw/46Ranch, LLC
agreed to construct an industrial building for the distribution of retail goods and light
manufacturing,consisting of approximately 158,750 square feet(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. 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 August 9,20222 ("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.
3. Assignee understands 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#57134 L REC®RD
from Jackson-Shaw/46Ranch, LLC to TREA JS South Fort Worth Industrial Portfolio. LL;
693 E'D Approved by M&C 22-0567 on August 9, 2022 ECRETARY
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4. Nothing in this Consent shall be deemed to grant Assignee any rights under the 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 deemed shall have the meanings
assigned to them in the Agreement.
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.
G N UNDER MY HAND AND SEAL OF OFFICE this f 6y of
92022.
W—in"
MARIA S SANCHEZ
Not Public in and for Notary ID#2256490
the State of Texas " My Commission Expires
y
December 19, 2025
a"
ATTEST:
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Vett
ecretary e Goodall
Consent to Assignment of Tax Abatement Agreement#57134 OFFICIAL RECORD
from Jackson-Shaw/46Ranch, LLC to TREA JS South Fort Worth Industrial Po bWkERETARY
Approved by M&C 22-0567 on August 9, 2022 FT. WORTH,TX
2
APPROVED AS TO FORM AND LEGALITY:
]B. Strong�'
VIN Sr. Assistant City Attorney
M&C: 22-0567
ASSIGNOR: Jackson-Shaw/46Ranch,LLC
a Texas limited liability company
By: AIT Capital Management,LLC
a Texas limited liability company,its Manager
By:
Name: JA
Title: vice atswwz?
ASSIGNEE: TREA JS South Fort Worth Industrial Portfolio,LLC
a Delaware limited liabili company
By: .
Name: Y LE p'f'-ih2 -F
Title: +,rhsw It r w-m
OFFICIAL RECORD
Consent to Assignment of Tax Abatement Agreement#57134 CITY SECRETARY
from Jackson-Shaw/46Ranch, LLC to TREA JS South Fort Worth Industrial Portf lic��,I} RTM, �T�
Approved by M&C 22-0567 on August 9, 2022
3
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STATE OF TEXAS §
COUNTY OF DALLAS §
BEFORE ME,the undersigned authority, on this day personally appeared ,7"oJ>,n �;bte ,
V of Jackson-Shaw/46Ranch, LLC, a Texas limited partnership, 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 Jackson-Shaw/46Ranch,LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this x day of
2022.
Notary Public in and for
the State of Texas HOLLI GRIER
•a�°'•a • public,State of Texas
°> k,oRlotorV
Comm.Eapir$G 0,Wt-2025
�OdE8890��
STATE OF TEXAS §
COUNTY OF DALLAS §BEFORE ME, t el dersigned authority, on this day personally appeared K I,
1
Qi
of TREA JS South Fort Worth Industrial Portfolio, LLC, a Delaware
limited liability co y,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 TREA JS South Fort
Worth Industrial Portfolio,LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this V, day of
2022.
Notary Public in an�f for aap&v°�eL WTHEW HUGHES DO®SON VI
g P notary ID#133236,130
the State of Texas �4Q My Commission Expires
09¢� July 27, 2025
OFFICIAL, RECORD
CITY SECRETARY
Consent to Assignment of Tax Abatement Agreement#57134 of TH, TX
from Jackson-Shaw/46Ranch, LLC to TREA JS South Fort Worth Industrial Po folio,ft
Approved by M&C 22-0567 on August 9, 2022
4
MC 220567 Version: 1
1)'"%i Award of Contract Consent
dE (CD 8) Authorize Execution of Consent to Assignment of City Secretary Contract Nos. 57134,
57140 and 57156, Tax Abatement Agreements with Jackson-Shaw/46Ranch, LLC to TREA IS
South Fort Worth Industrial Portfolio, LLC for Property Located at 6501 Oak Grove Road
Mover: Seconder:
Result:
Agenda note:
Minutes note:
Action: Approved
Action text: Approved.
City of Fort Worth,Texas
Mayor and Council Communication
DATE: 08/09/22 M&C FILE NUMBER: M&C 22-0567
LOG NAME: 1946RANCHASSIGN
SUBJECT
(CD 8)Authorize Execution of Consent to Assignment of City Secretary Contract Nos,57134,57140 and 57156,Tax Abatement Agreements with
Jackson-Shaw/46Ranch, LLC to TREA JS South Fort Worth Industrial Portfolio, LLC for Property Located at 6501 Oak Grove Road
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Consent to Assignment of Tax Abatement Agreements,(City Secretary
Contract Nos. 57134,57140 and 57156)between the City of Fort Worth and Jackson-Shaw/46Ranch, LLC to TREA JS South Fort Worth
Industrial Portfolio, LLC, in conjunction with the sale of the industrial project located at 6037,6101 and 1701 Campus Drive in Neighborhood
Empowerment Zone Area Six.
DISCUSSION:
On September 20,2020,the City Council approved a five-year Tax Abatement Agreement(Agreement)with Jackson-Shaw/46Ranch,
LLC(Company)related to the construction of three industrial buildings for the distribution of retail goods and light manufacturing located at 6037,
6101 and 1701 Campus Drive in Neighborhood Empowerment Zone Area Six(Mayor and Council Communication 20-0619) City Secretary
Contract Nos.57134,57140 and 57156.The original address on the contracts was 6501 Oak Grove Road.The property was re-platted and new
addresses were assigned for each building by the Fire Department.
The Company now wishes to sell the development to TREA JS South Fort Worth Industrial Portfolio, LLC (Purchaser). 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 of the Tax Abatement Agreement between the City,the Company and the Purchaser will be required.
The Company has constructed all the required improvements,as set forth in the Agreement,and the Purchaser will be required to meet all ongoing
obligations of the Company under the Agreement.The City will continue to receive the public benefits resulting from development of this project.
The industrial project is located in COUNCIL DISTRICT 8.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the Consent to Assignment of the current Tax Abatement Agreements,a loss of an
estimated$951,146.10 in property tax revenue may occur over the next five year period.This reduction in revenue will be incorporated into the
City's long term financial forecast upon the Consent to Assignment of the Tax Abatement Agreements being officially granted.
Submitted for City Manager's Office by: Fernando Costa 6122
Originatina Business Unit Head: Victor Turner 8187
Additional Information Contact: Sarah Odle 7316