HomeMy WebLinkAboutContract 32755 CITY SECRETARY
CONTRACT NO.
3-2 L�
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agree is made and entered into by and
between Village Homes, LP ("Assignor") and Ralph W. Manning and Krista N.
Manning,("Assignee")and the City of Fort Worth,("City")
RECITALS
A. Village Homes, LP ("Village") and the City of Fort Worth, Texas (the "City")
entered into that certain Tax Abatement Agreement ("Agreement") for Property
Located 3313 West 6th Street,Fort Worth,Texas 76107 also known as Lot 1R-6,
Block 4, William J. Bailey Addition, an Addition to the City of Fort Worth,
Tarrant County,Texas, according to the plat recorded in Cabinet B, Slide 2742,
Plat Records,Tarrant County,Texas, ("Property")which is located in the West 7`h
and University Neighborhood Empowerment Zone, such Agreement approved by
the City Council of Fort Worth March 2, 2004 City Secretary Contract Number
29854("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 May 6, 2005,
Assignor conveyed the Property to Ralph W.Manning and Krista N.Manning 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 May 6, 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 Assignor. Except as otherwise expressly set forth in this
Assib unent,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. 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.
S. 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. Citv 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 Assignor ,
it
if�o .-:✓l:�7tp Y dL'e
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:
RALPH W.MANNING and KRISTA N.MANNING
3313 West 6`"Street,Fort Worth,Texas 76107
ASSIGNOR:
Village Homes,LP
6300 Ridglea PI#218
Fort Worth,Texas 76116
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 Ionil executed and
delivered by all three parties.
IN WITNESS WHEREOF, the parties have executed this Assignment as of the
date first above written.
ASSIGNOR:Village Homes,L.P.
By: DH Management,Inc.,as General Partner
By: �A'u F
Michael Dike,President
Name: Michael Dike
Title: President
ASS I,E/:Ralph W.Manning and Krista N. in
W `
Name:Ralph W.Manning Na e: Krista N.Manning
F ti'
CITY OF FORT WORTH
Dale Fisseler
Assistant City Manager
ATTEST:
City 9cretary
APPROV;;STO FORM AND LEGALITY:
Cynthia Warcia
Assistant City Attorney
M&C:C-29854
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale
Fisseler, A4et 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 1177&day of
2005,
t1 { 1*1 KATHY F.DURHAM
Notary Pub c in and for the State of Texas
MY OOMMISSION EXPIRES
5= January 24,2009
STATE OF TEXAS §
COUNTY OF TARRANT §
rnI Chad
BEFORE ME, the undersigned authority, on this day personally appeared Dike,
President of DH Management,Inc.,as General Partner for Village Homes,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 Village Homes,LP
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of May,
2005
��xnrr J.H. 5EN'FLL
f Notary PuWic
Notary ]i nd for the State of Texas + STATE OF TEXAS
g
+ham My C—ww Exp.09/09/2005
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Ralph W.
Manning, 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 May,
2005.
J.H. SEWELL
Notary P orand for the State of Texas + Notary STA pF T le
M1- 4
E:p.09ity;2005
Cyd Op I�.
4
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Krista N.
Manning, 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 May,
2005.
Notary Pu 'c i or the State of Texas
5A H :
%taryP'qblla
OF.,��,� ark OF
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 3/2/2004
DATE: Tuesday, March 02, 2004
LOG NAME: 05VILLAGE HOMES REFERENCE NO.: C-19987
SUBJECT:
Approval of Tax Abatement Agreement with Village Homes for Eleven Real Estate Properties
Located in the West 7th Street/University Drive Neighborhood Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Approve a five-year Municipal Property Tax Abatement for each of eleven real properties listed in
Exhibit "A", owned by Village Homes and located in the West 7th Street/University Drive 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 Village
Homes are true and correct; and
3. Authorize the City Manager to enter into a separate Tax Abatement Agreement with Village Homes for
each of the properties listed on Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic
Incentives.
DISCUSSION:
Village Homes is the owner of the eleven properties listed in Exhibit "A". The real properties are located in
the West 7th Street/University Drive NEZ and Neighborhood Empowerment Reinvestment Zone No.
14. Village Homes 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 MBC 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 Program 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. Village Homes will invest, at a minimum, $2,152,000 to construct eleven town homes in the
West 7th Street/University Drive NEZ. In order for Village Homes to qualify for the tax abatement, Village
Homes must construct the townhomes with a minimum of 2000 square feet that will appraise for $295,000
for 2 story town homes, and $320,000 for 3 story town homes. 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,I
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, 2005, at the estimated pre-
improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2004, for each one of
the properties as follows:
Pre-improvement TAD Value of Improvements $ 0
Pre-improvement Estimated Value of Land $10,909
Total Pre-improvement Estimated Value $10,909
Logname: 03HRS01 Page 1 of 2
The municipal property tax on the improved value of the homes is estimated at $1786 per year on each 2
story unit and $1937 per year on each 3 story unit for a total of $102,005 over the five-year period for the
eleven 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 Village Homes 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.
The properties are located in COUNCIL DISTRICT 7.
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: Sarah Odle (7316)
Logname: 03HRS01 Page 2 of 2