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HomeMy WebLinkAboutContract 31055 CITY SECRETARY CONTRACT NO. 31 ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agreement is made and entered into by and between United Riverside Rebuilding Corporation ("Assignor") and Rosalene Wright& Robbie Wright, ("Assignee") and the City of Fort Worth, CCity") RECITALS A. United Riverside Rebuilding Corporation ("URRC") and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located 2720 East 12`h Street, Block 3, Lot 14, Martindale Addition ("Property") which is located in the Riverside Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth March 2, 2004 City Secretary Contract Number 30083 ("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. Pursuant to that certain Special Warranty Deed dated as of November 12, 2004, Assignor conveyed the Property to Rosalene Wright & Robbie Wright 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: 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 November 12, 2004, ("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 Assignor. Except as otherwise expressly set forth in this Assignment, Assignor will be discharged from any and all further obligations under '•t 1 the Agreement as of the Effective Date. Assignor must surrender the Property to the Assignee on or before 11:59 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 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 ASSIGNEE: Rosalene Wright & Robbie Wright 2720 East 12`x' Street Fort Worth, Texas 76111 ASSIGNOR: United Riverside Rebuilding Corporation 201 S. Sylvania Ave. 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. 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. ASSIGN AMLen kRbuilding Corporation Si iaz Name: K Title: cutive Director ASSIGNEE: Rosalene Wright& Robbie Wright PurchaseZ Si tune Name: Purchaser,.Sijznature Name •_ 3 CITY OF FORT WORTH DalVisseler V Acting Assistant City Manager ATTEST: City Secretary �3 A PRO AS ORM AND APPRO LEGALITY: Cynthia Garcia Assistant City Attorney M & C: C-19986 4 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Kelly Allen Gray, Executive Director of United Riverside Rebuilding Corporation, 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 United Riverside Rebuilding Corporation J)O-r EN UNDER MY HAND AND SEAL OF OFFICE this 149 day of A 2004. g6bb"'/—z I jj(kx tary Public in and for T the State of Texas z��"w PUQ`C CHRISTIRY•PUIBL CN NOTA STATE OF TEXAS My Comm.Exp.04-03-2008 �OF STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Rosalene Wright & Robbie Wright, 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 -day of 2004. tary Public in and for the State of Texas 201FpV Pue� CHRISTI L.WILSON STOATE OF TEXAS 1P Of My Comm.Exp.04-03.2008 �OF 6 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler, Acting 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 2004. f Notary Public in and for the State of Texas ; - HETTIE LA 14E M1Y CO"'MISSfaN EXPIRES Aq 26.2007 G _'rf l�.•;_—_� is�r .. J ,Jtl Lf LE�I - - - City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 3/2/2004 DATE: Tuesday, March 02, 2004 LOG NAME: 05RIVERSONE REFERENCE NO.: C-19986 SUBJECT: Approval of Tax Abatement Agreement with United Riverside Rebuilding Corporation for 2720 East 12th Street in the Riverside Neighborhood Empowerment Zone (NEZ) RECOMMENDATION: It is recommended that the City Council: 1. Approve a five-year Municipal Property Tax Abatement for a property located at 2720 East 12th Street owned by United Riverside Rebuilding Corporation URRC in the Riverside Neighborhood Empowerment Zone (NEZ); and 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the Agreement) with URRC are true and correct; and 3. Authorize the City Manager to enter into a Tax Abatement Agreement with URRC for 2720 East 12th Street in the Riverside NEZ in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: United Riverside Rebuilding Corporation (URRC), is the owner of the property at 2720 East 12th Street (Martindale Addition, Block 3, Lot 14). The property is located in the Riverside (NEZ), and Neighborhood Empowerment Reinvestment Zone (NERZ No. 11). URRC applied for a five-year municipal property tax abatement under the NEZ Basic Incentives (M&C G-13208R, M&C G-13580, M&C G-13662, and M&C C- 19551, as amended). The Housing Department 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 on the increased value of improvements to the qualified owner of any new home constructed within a Neighborhood Empowerment Zone. URRC will invest $76,969 to construct a single-family home in the Riverside NEZ. A description of the home to be constructed is attached as Exhibit "A." The Agreement is attached as Exhibit "B." Upon execution of the Agreement, the total assessed value of improvements used for calculating municipal property tax will be frozen for five years at the most recent pre-improvement value as defined by the Tarrant Appraisal District (TAD). The abatement only applies to the improvement value, not to the land. The term of the abatement shall begin on January 1 of the year following the calendar year in which the required improvement was completed, and unless sooner terminated, shall end on December 31 immediately preceding the fifth anniversary of the beginning date. In January 2004, TAD estimated the pre-improvement value of the property as follows: Pre-improvement TAD Value of Improvements $ 0.00 Pre-improvement Estimated Value of Land $ 0.00 Total Pre-improvement Estimated Value $ 0.00 Logname: 05RIVERSONE Page 1 of 2 The municipal property tax on the improved value of the home after its construction is estimated at $466 per year, for a total of $2,330 over the five year period. However, this estimate may be different from the actual tax abatement value which will be calculated based on the Tarrant Appraisal District appraised value of the property. The tax abatement agreement provides that the agreement may be assigned without subsequent City Council approval to URRC'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. This property is located in COUNCIL DISTRICT 8. 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) Originating Department Head: Jerome Walker (7537) Additional Information Contact: Jerome Walker (7537) Logname: 05RIVERSONE Page 2 of 2