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HomeMy WebLinkAboutContract 32723 17Y SECRETARY L;UNTRACT NO . ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agree is made and entered into by and between Ridglea Place, L.P. ("Assignor") and Martin J..Walsh, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Ridglea Place, L.P. ("Ridglea") and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located at 3815 Westridge Ave., Fort Worth, Texas 76116 ("Property") which is located in the Ridglea Village and Como Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth November 18, 2003 City Secretary Contract Number 29900 ("Agreement"): B. Section 5 of the Agreement permits Assignor to assign all of its rights under the Agreement to Assignee, without obtaining the prior consent of the City Council.- C. ouncil:C. Pursuant to that certain Special Warranty Deed dated as of . J.une 22,. 2005.:., Assignor conveyed the Property to Martin J. Walsh and Assignee acquired title to the real property which is the subject of the Agreement. AGREEMENT NOW THEREFORE, in consideration of the mutual terns 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 June 22, 2005 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 Assip?nor. 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 1 l:59 p. in. 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 terns 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 ASSIGNEE.- Martin SSIGNEE:Martin I Walsh 3815 Wesfridge:Avenue Fort..Woith,.TX 76.116 ASSIGNOR: Boulevard Builders, LLC General Partner for Ridglea Place, LP 4809 Cole Avenue Suite 345 Dallas, Texas 75205 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 2 7UN-21-2005 15;14 ALAMO TITLE COMMERCIAL P.15 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: Ridglea Place, L.P. �J Name: Ike "v/- f r-ePl& Boulevard Builders, LLC General Partner for Ridglea Place. LP ASSIGNEE: Martin J. Walsh KA&—A I V. ame: Martin 4. Walsh CITY OF FORT WORTH C� Dale Fisseler Assistant City Manager ATTEST: City Secretary i 3 APPROVED 0 FORM AND LEGALITY. Cynthia Garcia Assistant City Attorney M & C: C-19864 L L , I.. STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler, 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. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2005. Notary Public in and for the State of Texas Y KATHY F.DURHAM MY COMMISSION EXPIRES January24,2009 5 T.IJN-21-2005 15 15 ALAMO TITLE COMMERCIAL P. 18 STATE OF TEXAS § COUNTY OF TARRANT § BORE ME, the undersigned authority, on this day personally appeared d Pe Manager of Boulevard Builders, LLC, General Partner for Ridglea Place, L.P., 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 Ridglea Place, L.P. GIVEN UNDER MY HAND AND SEAL OF OFFICE this CJS day of 2005. -k-L &Mta_� gp3XP. RA. KEERTHI KUMAR Notary Public in and for (•�C � NUary Public,SLte of Tons the State of Texas '$ { N}.CommlIV01 a0res0l•26.06 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Martin J. Walsh 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 puiposes and consideration therein expressed, in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this c>�--day of 1 � ) 2005. / r Notaryublic in and for the State of Texas ,�, _!� -JACK, iv1C#�tII [[ t Notar1 Pua5c l� �, ATE OF TEiCAZ Exp.07/3010-11 ���wxrxs ---tas-.s.7aessssa�.s>a n;x•1'j�i� M l City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 11/18/2003 DATE: Tuesday, November 18, 2003 LOG NAME: 05BLVD BUILDERS REFERENCE NO.: C-19864 SUBJECT: Approval of Tax Abatement Agreement with Ridglea Place, LP for 55 Real Estate Properties Located in the Ridglea Village/Como Neighborhood Empowerment Zone RECOMMENDATION: It is recommended that the City Council: 1. Approve a five-year Municipal Property Tax Abatement for each of 55 Real properties listed in Exhibit "A", owned by Ridglea Place, LP and located in the Ridglea Village/Como Neighborhood Empowerment Zone (NEZ) for the development of townhomes; and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Ridglea Place, LP are true and correct; and 3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Ridglea Place, LP for each of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: Ridglea Place, LP is the owner of the 55 properties listed in Exhibit "A". The real properties are located in the Ridglea Village/Como NEZ and Neighborhood Empowerment Reinvestment Zone No. 2. Ridglea Place, LP applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-13208R, M&C G-13580 and M&C G-13662, as amended). The Housing Department reviewed the application and certified that the properties meet the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentives offers a five-year municipal property tax abatement on the increased value of improvements to the qualified owner of any new home constructed within a NEZ. Ridglea Place, LP will invest, at a minimum, $6,215,000 to construct 55 town homes in the Ridglea/Como NEZ. In order for Ridglea Place, LP to qualify for the tax abatement, Ridglea Place, LP must construct the townhomes with a minimum of 1700 square feet that will appraise for $140,000. A more detailed description of the homes to be constructed is attached as Exhibit "B". The form of the Tax Abatement Agreement is attached as Exhibit "C". Upon execution of the agreement, the total assessed value of the home used for calculating municipal property tax will be frozen for a five-year period, starting on January 1, 2004, at the estimated pre- improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2003, for each one of the properties as follows: Pre-improvement TAD Value of Improvements $0 Pre-improvement Estimated Value of Land $17,040 Total Pre-improvement Estimated Value $17,040 Logname: 03HRS01 Page 1 of 2 The municipal property tax on the improved value of the homes is estimated at $684 per year on each property for a total of $188,100 over the five-year period for the 55 homes. However, this estimate may be different from the actual tax abatement value, which will be calculated based on the TAD appraised value of the property. Upon the sale of the home, the agreement will be assigned to the new owner, so long as the new owner meets all eligible criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. The Tax Abatement Agreement provides that the agreement may be assigned without subsequent City Council approval to Ridglea Place, LP's first mortgagee, or to a homeowner who will use the required improvements as his/her primary residence or the homeowner's mortgagee. All other assignments must be approved by the City Council. Ridglea Place, LP is located in COUNCIL DISTRICT 3. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by- Reid Rector (6140) Origin tin_q Department-Head: Jerome C Walker (7537) Additional Information_Contact; Jerome C Walker (7537) Elizee Michel (7336) Logname: 03HRS01 Page 2 of 2