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HomeMy WebLinkAboutContract 38825-CA1 CITY SlEq!ETAR* CONTRACT N0. CONSENT TO ASSIGNMENT OF TAX ABATEMENT AGREEMENT (CITY SECRETARY CONTRACT NO. 38825) This CONSENT TO ASSIGNMENT OF CITY SECRETARY CONTRACT N O. 38825 ("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 HEMPHILL JOINT VENTURE ("Assignor or Owner"), and SE/AM PROPERTIES,L.P. ("Assignee"). The following introductory provisions are true and correct and from the basis of this Consent: A. On or about June 16, 2009, the City and Hemphill Joint Venture entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 38825 (the "Agreement"). Under the Agreement, Hemphill Joint Venture agreed to rehabilitate a building for retail/office use (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. The Required Improvements were completed as required by the Agreement and the Abatement is currently in effect pursuant to and in accordance with the Agreement. C. 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. The Agreement stipulates that the Agreement may not be assigned to a third party purchaser of the Required Improvements without the consent of the City Council. 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 September 24, 2013, ("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. Consent to Assignment of Tax Abatement Agreement#3882 OFFICIAL RECORD from Hemphill Joint Venture to SE/AM Properties, L.P.. C1TV',SECRVARY HCEIV OCI' 4 0 20'IS Approved by M&C C-26456 on September 24, 2013 F*'t, WORTH, ED , 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 Section 2 of the Agreement (ii) any Event of Default set forth in Section 4 of the Agreement. 4. Nothing in this Consent shall be deemed to grant Assignee any rights under the Agreement that are additional 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 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 be 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 be executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. EN UNDER MY HAND AND SEAL OF OFFICE this day of 2013. EVONIA DANIELS of lexas Notary Public in and for t)otay Put)ustote h$v CommiWon ExpOes the State of Texas V l Juy 10, 2017 4- 1*0 0*000UQ00i ATTEST: o 0 0 a a 0 0 0 0 A 0 Se 0, 0 000 0) 00 0000 0 kY OFFICIAL RECORD Consent to Assignment of Tax Abatement Agreement#388 .r,,.,ITY SECRE1111"ARY" from Hemphill Joint Venture to SE/AM Properties, L.P.. , FT WOR"MI TX Approved by M&C C-26456 on September 24, 2013 2 APPROVED AS TO FORM AND LEGALITY: Melinda Ramos Sr. Assistant City Attorney M & C: C-26456 ASSIGNOR: Jake Jordan. Investments, LLC a Texas limited liability camp ny andeneral partner of Hemphill Joint Venture By: e Jor Manager ASSIGNEE: SEJ and AMJ Holdings, L.L.C., general partner of SE/AM Properties, L.P. VVBy: Jil � . ding Mrtager STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Jake Jordan, 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. EN, UNDER MY HAND AND SEAL OF OFFICE this day of 20J-3.; ,An, Notary Public in and for CECILIO VILLALTA the State of Texas M1'COOMSSW ExOres ,�h K W117.2017 Consent to Assignment of Tax Abatement Agreement#38825 from Hemphill Joint Venture to SE/AM Properties, L.P.. Approved by M&C C-26456 on September 24, 2013 3 STATE OF TEXAS § COUNTY OF TARRA.NT § BEFORE ME, the undersigned authority, on this day personally appeared Jill T. Jing, 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. Nom,, UNDER MY HAND AND SEAL OF OFFICE this day of A 16�01 12013. rotary Public in and for MUG VkLALTA the State of Texas M►c jw Evims a *117.20 t? Consent to Assignment of Tax Abatement Agreement #38825 from Hemphill Joint Venture to SE/AM Properties, L.P.. Approved by M&C C-26456 on September 24, 2013 4 %//' wo /vi%, i //, �f/,/ ,,,1,%..rr,..,G ar////�//Gl r.,,11/�l✓ , ,;rl�, ii 1�:..a, ,rfrr�//ii�,,i�,,,r//l�,a(i �� � ,/c�� �r ��T 1/�l/,,, ����rl 1::� / �,%���� Or mi m i0000ami m im.�mmmuuuuuuuuuuuuumuuuumwwmivaawaonoiowoor umi �n�i b m DATE: 9/24/2013 REFERENCE .*C-26456 LOG NAME: 17NEZSEMINARYASSIGN NO.: CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Consent to Assignment of Tax Abatement Agreement, City Secretary Contract No. 38825, by Hemphill Joint Venture for the Rehabilitation of a Building for Retail/Office Space Located at 117 West Seminary Drive in the Hemphill/Berry Neighborhood Empowerment Zone to SE/AM Properties, L.P., and Authorize Execution of Related Assignment Agreement(COUNCIL DISTRICT 9) RECOMMENDATION: It is recommended that the City Council: 1. Authorize the consent to the assignment by Hemphill Joint Venture, of their rights, duties and obligations under its Tax Abatement Agreement, City Secretary Contract No. 38825, for the rehabilitation of a building for retail/office space located at 117 West Seminary Drive in the Hemphill/Berry Neighborhood Empowerment Zone to SE/AM Properties, L.P.; and 2. Authorize the City Manager to execute an Assignment Agreement with SE/AM Properties, L.P. DISCUSSION: On June 16, 2009, (M&C C-23591 and City Secretary Contract No. 38825)the City Council granted the execution of a Tax Abatement Agreement with Hemphill Joint Venture for the property located at 117 West Seminary in the Hemphill/Berry Neighborhood Empowerment Zone(NEZ)for the rehabilitation of an office/retail building which was completed as specified in the Tax Abatement Agreement. The Tax Abatement Agreement prohibits Hemphill Joint Venture from assigning their rights under the Agreement to a third party unless the City Council approves the assignment. Ownership has changed to the main tenant; a dental office owned by SE/AM Properties, L.P. Staff recommends approval of the assignment. The property is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations of City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Cynthia Garcia (8187) Robert Stums (8003) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS 117 W Seminary Drive.pdf Pagel of 1