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HomeMy WebLinkAboutContract 62663-CA1city Secretary Loa6 O -0 A 1 Contract No ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agreement is made and entered into by and between CD & CP Real Estate I, LLC ("Assignor") and Gilberto Duran and Sonia Altamirano, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. CD & CP Real Estate 1, LLC and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located 148 Cottonwood Street, Block 2, Lot 1, W.H. Meyers Addition, an Addition to the City of Fort Worth, Tarrant County Texas, according to the plat thereof recorded in Volume 1337, Page 115, Plat Records, Tarrant County, Texas. ("Property") which is located in Neighborhood Empowerment Zone Four, such Agreement approved by the City Council of Fort Worth December 10, 2024, City Secretary Contract Number 62663 ("Agreement"): B. Section 5 of the Agreement permits Assignor to assign all of its rights under the Agreement to a home buyer, without obtaining the prior consent of the City Council: C. Pursuant to that certain Special Warranty Deed dated as of June 20, 2025, recorded under Tarrant County Deed Records, Assignor conveyed the Property to Gilberto Duran and Sonia Altamirano and Assignee acquired title to the real property which is the subject of the Agreement. AGREEMENT 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: Assignment. Assignor hereby ASSIGNS, TRANSFERS AND CONVEYS all rights, duties, obligations, title and interest under the Agreement to Assignee. 2. Acceptance. Assignee hereby accepts the Assignment granted herein, and assumes all of Assignor's rights, duties and obligations arising under the Agreement. Effective Date. The effective date of this Assignment is June 20, 2025, ("Effective Date"). All rights, duties and obligations under the Agreement arising, accruing or relating to the period before the Effective Date are allocated to Assignor and all rights, duties and obligations arising, accruing or relating to the period thereafter shall be allocated to Assignee. 4. Release and Surrender of Assiunor. Except as otherwise expressly set forth in this Assignment, Assignor will be discharged from any and all further, obligations 'un ec�r I ooFPCIAL R.FCDRD Assignment of Tax Abatement Contract # 62663 c.cCRETA►RY From CD & CP Real Estate I, LLC to Gilberto Duran and Sonia Altamirano 1 a , TX v,]ORTH, the Agreement as of the Effective Date. Assignor must surrender the Property to the Assignee on or before 11:59 p. m. on the date prior to the Effective Date in its present condition. Assignor relinquishes any right to any improvements, fixtures or equipment on the Property. 5. Representations. Assignor represents, warrants and covenants with Assignee that as of the Effective Date, that Assignor is not in default under any of its obligations contained in the Agreement. 6. City of Fort Worth's Consent. City of Fort Worth hereby consents to this Assignment upon the terms and conditions set forth herein. Unless and until City of Fort Worth has executed this Assignment, this Assignment is of no effect the consent granted herein should not be construed as consent to any further assignment except as provided in the Agreement. The failure or delay of City of Fort Worth in seeking to enforce any provisions of the Agreement or this Assignment should not be deemed a waiver of rights or remedies that City of Fort Worth may have, or a waiver of any subsequent breach of the terms and provisions therein or herein contained. 7. Notices. Any notice given by any party to another party hereto must be given in the manner required under the Agreement. The addresses set forth below supersede any addresses for notices set forth in the Agreement. CITY OF FORT WORTH: City of Fort Worth Neighborhood Services Department NEZ Program 100 Fort Worth Trail Fort Worth, Texas 76102 ASSIGNOR: CD & CP Real Estate I, LLC 1133 Oak Glen Cir. Fort Worth, TX 76114 ASSIGNEE: Gilberto Duran and Sonia Altamirano 148 Cottonwood Street Fort Worth, TX 76111 8. Successors. Except as herein otherwise provided, this Assignment will be binding upon and inure to the benefit of the parties, and their respective heirs, executors, administrators, successors and assigns. 9. Counter carts. This Assignment may be executed in multiple counterparts, each of which, once executed, will be an original and fully -binding on the parties so executing; and all such counterparts together constitute one and the same agreement. 10. Binding Offer. This Assignment will not be binding until executed and delivered by all three parties. Assignment of Tax Abatement Contract # 62663 From CD & CP Real Estate I, LLC to Gilberto Duran and Sonia Altamirano 2 IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written. ASSIGNOR: CD & CP Real Estate 1, LLC Warne: I' inda Zamor4Nember CD & CP Real Estate I, LLC STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Linda Zamora, Member of CD &CP Real Estate I, LLC, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this a n°�day of 1� , 2025. Ck,- Notary Public in and the State of Texas STATE OF TEXAS § COUNTY OF TARRANT § ARELYAGUIRRE My Notary 0 # 131ti9 W Eow kqW 27, 2= BEFORE ME, the undersigned authority, on this day personally appeared Gilberto Duran, 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this a na day of i l � k'-A , 2025. Notary Pu lic in and f the State of Texas ARELYAGUIRRE fty MY NOWY ID 0131ti9 M N,-, SO, EXNAuquet 27, 2026 Assignment of Tax Abatement Contract # 62663 From CD & CP Real Estate 1, LLC to Gilberto Duran and Sonia Altamirano 3 City of Fort Worth, Texas Mayor and Council Communication DATE: 12/10/24 M&C FILE NUMBER: M&C 24-1159 LOG NAME: 19NEZ148COTTONWOOD SUBJECT (CD 11) Authorize Execution of a Five -Year Tax Abatement Agreement with CD & CP Real Estate I, LLC for the Construction of a Single -Family Dwelling of Approximately 2,699 Square Feet and Having a Cost of at Least $209,500.00 on Property Located at 148 Cottonwood Street, in the Riverside Alliance Area and within Neighborhood Empowerment Zone Area Four and Neighborhood Empowerment Reinvestment Zone No. 4R RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of a five-year Tax Abatement Agreement with CD & CP Real Estate I, LLC for the construction of a single-family dwelling of approximately 2,699 square feet and having a cost of at least $209,500.00 on property located at 148 Cottonwood Street, in the Riverside Alliance area and within Neighborhood Empowerment Zone Area Four and Neighborhood Empowerment Reinvestment Zone No. 4R; and 2. Find that the terms of, and the property subject to, the Tax Abatement Agreement meet the criteria and guidelines set forth in the Neighborhood Empowerment Zone Program Basic Incentives and Tax Abatement Policy. DISCUSSION: CD & CP Real Estate I, LLC, (Property Owners), are the owners of the property described as Lot 3, Block 2, W. J. Meyers Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat Thereof Record recorded in Volume 1337, Page 115, Plat Records, Tarrant County, Texas, located at 148 Cottonwood Street, Fort Worth, Texas, (the Property). The Property is located in the Riverside Alliance area and within Neighborhood Empowerment Zone, (NEZ) Area Four. The Property Owners plan to invest an estimated amount of $209,500.00 to construct a single-family residence of approximately 2,699 square feet, (Project) on the Property. The Project will be sold to a homeowner to be used as a primary residence. The Neighborhood Services Department reviewed the application and certified that the Property Owners and Project meet the eligibility criteria to receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the increased value of improvements to the qualified owners of any new construction or rehabilitation within the NEZ. Residential owner -occupied tax abatements are capped at the annual median home value as reported by the National Association of Realtors for Tarrant County. This value is updated annually and is currently $380,220.00. Upon execution of the Tax Abatement Agreement (Agreement), the total assessed value of the improvements used for calculating municipal property tax will be frozen for a period of five years starting January 2025 at the estimated pre -improvement value as defined by the Tarrant Appraisal District, (TAD) in October 2024, after the demolition of the existing structure for the property as follows: Pre -Improvement TAD Value of Improvements $ 0.00I Pre -Improvement Estimated Value of Land $33,750.00 Total Pre -Improvement Estimated Value $33,750.00I The municipal property tax on the improved value of the Project after construction is estimated in the amount of $1,408.89 per year, for a total amount of $7,044.45 over the five-year period. However, this estimate may differ from the actual tax abatement value, which will be calculated based on the TAD appraised value of the property up to the capped value. In the event of a sale of this Property, the Agreement may be assigned to a new owner's first mortgage or a new owner as a primary residence. All other assignments must be approved by the City Council. This property is located in COUNCIL DISTRICT 11 FISCAL INFORMATION / CERTIFICATION:. The Director of Finance certifies that upon final approval of the Tax Abatement Agreement, a loss of an estimated $7,044.45 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. Submitted for Citv Manaaer's Office bv: Jesica McEachern 5804 Oriainatina Business Unit Head: Kacey Bess 8187 Additional Information Contact: Sarah Odle 7316 MC 241159 Version: 1 Type: Award of Contract - Report of CM Title: (CD 11) Authorize Execution of a Five -Year Tax Abatement Agreement with CD & CP Real Estate I, LLC for the Construction of a Single -Family Dwelling of Approximately 2,699 Square Feet and Having a Cost of at Least $209,500.00 on Property Located at 148 Cottonwood Street, in the Riverside Alliance Area and within Neighborhood Empowerment Zone Area Four and Neighborhood Empowerment Reinvestment Zone No. 4R Mover: Jeanette Martinez Seconder: Macy Hill Result: Agenda note: Minutes note: Action: Approved Action text: Council Member Martinez made a motion, seconded by Council Member Hill, that M&C 24-1159 be Votes (0:0) ASSIGNEE: Gilberto Duran 1 Name: Gilberto Duran BEFORE ME, the undersigned authority, on this day personally appeared Sonia Altamirano, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the purposes and consideration therein expressed, in the capacity therein stated. GIVEN UNDER r �Y IIAND 2025. Notary Pu is in and fo the State of Texas ASSIGNEE: Sonia Altamirano -awo;y� Name: Sonia Altamirano CITY OF FORT WORTH Dana Burgh ff Assistant Ci Ma g r ATT ST: andette Goodall City Secretary AND SEAL OF OFFICE this _��day of MELYAGUIRRE M�yNottsy ID # 1316MM S Eowhq*2T,2026 eePWI n� ° F0,4 ° aV° 020 P$ °y� 3�/ P °°° 00 YAl aa.�00000 b OFFICIAL RECORD CITE! SECRETARY FT WORTH, TX � Assignment of Tax Abatement Contract # 62663 From CD & CP Real Estate I, LLC to Gilberto Duran and Sonia Altamirano 4 APPROVED AS TO FORM AND LEGALITY: Christopher Austria Sr. Assistant City Attorney M & C: 24-1158 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Dana Burghdoff, 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 she 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of (J l 12025. Notary Public `rf a d for the State of Te Victoria Esqulel • My CornmIssion 5/12/2029 Expires Notary 10135515177 Assignment of Tax Abatement Contract # 62663 From CD & CP Real Estate I, LLC to Gilberto Duran and Sonia Altamirano 5