HomeMy WebLinkAboutContract 31065 CITY ��
CONTRACT SECRETARY
NO.NO.
ASSIGNMENT OF TAX ABATEMENT AGREEMENT
This Assignment of Tax Abatement Agree is made and entered into by and between
Village Homes,LP ("Assignor")and Jack H.Summerford and R.Jane Summerford,("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 720 Arch
Adams Lane,Fort Worth,Texas 76107 also known as Lot 1R-17,Block 4,WILLIAM J.
BAILEY ADDITION,an Addition to the City of Fort Worth,Tarrant County,Texas,according
to the replat in Cabinet B,Slide 2672,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
29857("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 19,2004,Assignor
conveyed the Property to Jack H. Summerford and R. Jane Summerford and Assignee
acquired title to the real property,which is the subject of the Agreement.
AGREEMENT
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 Assigtunent 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 19,2004,2004
("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 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
ASSIGNEE:
JACK H. SUMMERFORD and R.JANE SUMMERFORD
720 Arch Adams Lane
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 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:Village Homes,L.P.
By: DH Management,Inc.,as General Partner
By: U
Michael Dike,President
Name: Michael Dike
A
• resident
erf and ane Su dack e d N R.Jane Summerford
CITY OF WRT WO T
I i �
Assistant City Manager
-m'
ATTEST:
n
City Secretary
7ED AS TO FORM AND LEGALITY:
CyntlVa Garcia
Assistant City Attorney
M&C: C-19987
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.
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G EN UNDERMY HAND AND SEAL OF OFFICE this 14 day of Ne�ern�er,2004.
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Notary Public in and for the State of Texas
HETTIE LADE
My COMMISS1014 EXPIRE&
JuIy 26.2007
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STATE OF TEXAS §
COUNTY OF TARRANT §
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 Y HAND AND SEAL OF OFFICE this day of November, 2004.
emy
J.N. SEWELLblic
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Nota b and for the State of Texas fJotary TE S�ATE OF TEXAS eanrn.5xp.0910912005
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Jack H. Summerford,
known to me to be the person whose name is subscribed to the foregoing instrument,and
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acknowledged to me that he executed the same for the purposes and consideration therein expressed,
in the capacity therein stated.
GIVEN UNDER AND SEAL OF OFFICE this 1 6fday of November,2004.
Notary Public ' f the State of Texas emy
=OF
No
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared R. Jane Summerford,
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 M OAND AND SEAL OF OFFICE this day of November,2004.
J H, SEWELL
Notary Publlc
Notary Pu m for the State of Texas i t STATE OF TEXAS
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Up.09/0912005
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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 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 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„
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: 05VILLAGE HOMES '
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: 05VILLAGE HOMES