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Home My WebLink AboutContract 30502 CITY SECRET CONTRACT NO Y 56Q- ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agree is made and entered into by and between Ramey Avenue, L.P. ("Assignor") and KB Home Lone Star, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Assignor and the City of Fort Worth, Texas (the "City") are parties to that certain Tax Abatement Agreement ("Agreement") for Property Located 5932 MCKASKLE DRIVE, LOT 2, BLOCK 2, which is located in the Stop Six Neighborhood Empowerment Zone, such Agreement dated May 15, 2003 City Secretary Contract Number 28695 ("Agreement"). B. Pursuant to that certain Special Warranty Deed, dated as of aco`(, recorded under Tarrant County Clerk's File No. , Assignee acquired title to the real property which is the subject of the Agreement. C. Section 5 of the Agreement permits Assignor to assign all of its rights under the Agreement to KB Home Lone Star, L.P. without obtaining the prior consent of the City Council. D. In order to evidence the assignment referred to above, Assignor agrees to make the conveyance to Assignee as herein set forth. 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: 1. 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. 3. Effective Date. The effective date of this Assignment is , 204- ("Effective 04("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. `s"t Ile. 4. Release and Surrender of Assignor. Except as otherwise expressly set forth in this Assignment, Assignor will be discharged from any and all further obligations under 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 supercede any addresses for notices set forth in the Agreement. CITY OF FORT WORTH: City of Fort Worth Housing Department(NEZ) 1000 Throckmorton Fort Worth, Texas 76102 ASSIGNOR: Ramey Avenue, L.P. 9507 Granbury Highway Weatherford, TX 76087-5216 ASSIGNEE: KB Home Lone Star, L.P. 2711 LBJ Freeway#600 Dallas, TX 75075 2 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. Counterparts. 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 be not be binding until executed and delivered by all three parties. IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written. ASSIGNOR: Ramey Avenue, L.P. By: Sheffield Asset Management Company, Inc., its Ge Partner Name: Gary V. Sheffield Title: Pres ent ASSIGNEE: KB Home Lone Star L.P. k Name: Title: CITY OF FORT WORTH 'ju� G2 eid Rector Assistant City Manager ATTEST: fN\f'\" City Secretary contract Authorization 3 l� i zgL Date APPROVED AS TO FORM AND LEGALITY: Assistant City Attorney M & C: C-19490 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Assistant City Manager of the CITY OF FORT WOFIH, 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this � day of 2004. Notary Public in and for the State of Texas Ka�Fr� EL uAvcs-'1SH�� Myr 0)rs ./�.° T•ttoy 07 Z dna STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Gary D. Sheffield, President of Sheffield Asset Management Company, Inc., the General Partner of Ramey Avenue, L.P., 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 the Ramey Avenue, L.P., a Texas limited partnership. GIVEN UNDER MY HAND AND SEAL OF OFFICE this I(1 a day of , 2004 Notary Public in and r the State of Texas '0.•11111111 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Nv:d t6;sticg.N , preside.%,+ of KB Home Lone Star L.P., 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 the Ramey Avenue, L.P., a Texas limited partnership. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 5771 day of f?wST , 200Y! 4zt,4 Notary Public in and for . .....'pA tib,%y the State of Texas J City of Fort Worth, Texas "IN.Vor And council Communication DATE REFERENCE NUMBER LOG NAME PAGE 2/25/03 C-19490 05RAMEY 1 of 2 SUBJECT APPROVAL OF TAX ABATEMENT AGREEMENT WITH RAMEY AVENUE, L.P., A TEXAS LIMITED PARTNERSHIP, AND KB HOME LONE STAR, L.P., A TEXAS LIMITED PARTNERSHIP, FOR THE RAMEY PLACE ADDITION IN THE STOP SIX NEIGHBORHOOD EMPOWERMENT ZONE RECOMMENDATION: It is recommended that the City Council: 1. Approve the application of Ramey Avenue, L.P. and KB Home Lone Star, L.P. for a five-year Municipal Property Tax Abatement for the Ramey Place Addition in the Stop Six Neighborhood Empowerment Zone (NEZ); and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Ramey Avenue, L.P., a Texas Limited Partnership, and KB Home Lone Star, L.P., are true and correct; and 3. Authorize the City Manager to enter into a Tax Abatement Agreement with Ramey Avenue, L.P., and KB Home Lone Star, L.P., in accordance with the NEZ Basic Incentives. DISCUSSION: Ramey Avenue, L.P., a Texas Limited Partnership, and KB Home Lone Star, L.P., a Texas Limited Partnership, are the owner/developer of the Ramey Place Addition located off the 5900 block of Ramey Avenue and Cass Street in the Stop Six NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ No. 1). Ramey Avenue, L.P. and KB Home Lone Star, L.P. applied for a five-year municipal property tax abatement under the NEZ Basic Incentives (M&C G-13208R dated June 5, 2001, M&C G- 13580 dated April 2, 2002, and M&C G-13662 dated July 23, 2002, as amended). The Housing Department has reviewed the application and certified that the property meets the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentives offers a five-year municipal property tax abatement of the increased value of improvements to the owner of any new home constructed within a NEZ. KB Home Lone Star, L.P. will invest $6,200,000 to construct sixty (60) single-family homes, not including the model home, in the Ramey Place Addition. The addresses, types and site plan of the proposed development are attached to this report. Upon execution of the tax abatement agreement, the total assessed values of each home in -the Ramey Place Addition used for calculating municipal property tax will be frozen for a five-year period, starting on the date the home is sold to a homebuyer to be used as a primary residence, at the pre- improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, as follows: