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HomeMy WebLinkAboutContract 44519-A1 CITY SE;CRETARV CONTRACT NO. AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE (CITY SECRETARY CONTRACT NO. 44519) This AMENDMENT NO. 1 TO TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE ("Amendment") is made and entered into by and between the CITY OF FORT WORTH ("City"), a home rule municipal corporation organized under the laws of the State of Texas, and Axel Alvarez-Tostado ("Owner"). The following introductory provisions are true and correct and for the basis of this Amendment: A. As of May 7, 2013 the City and Owner entered into that certain Tax Abatement Agreement on file in the City Secretary's Office as City Secretary Contract No. 44519 (the "Agreement"). Under the Agreement, Owner agreed, to construct single family residence (the "Project", as more specifically defined in the Agreement) on certain real property located in the Polytechnic/Wesleyan Neighborhood Empowerment Zone. In return, the City agreed to grant Owner a Municipal Tax Abatement as authorized by Chapter 378 of the Texas Local Government Code and outlined in the Agreement. B. Owner completed construction of all of the Required Improvements within two years from the date of Council approval as provided in section 1.2 of the agreement (the "Completion Date"). The Required Improvements were deemed complete upon the issuance of a final inspection for the Required Improvements by the Planning and M Development Department. Owner did construct a single family residence of at least 1,300 C-) M square feet in size and Tarrant Appraisal District appraised the property within 10% of M $49,600.00 for the Required Improvements by the Completion Deadline as provided in co Section 1.1 of the agreement. 3 At C. The Agreement shall be amended to correct section 1.3 ("Use of Premises"); and 00 section 5. ("Effect of Sale of Premises"). N tJ7 NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the City and Owner hereby agree as follows: 1. Section 1.3 of the Agreement (Use of Premises) is hereby amended to reflect the correct use of the Premises and the Required Improvements: The actual use of the Premises and the Required Improvements shall be used as rental property. OFFICIAL RECORD Page 1 CITY SECRETARY Amendment No. l to CSC No.44519 FTS VVORTN9 TX Neighborhood Empowerment Zone Tax Abatement Agreement with Axel Alvarez-Tostado 2. Section 5 of the Agreement (Effect of Sale of Premises) is hereby amended to reflect the correct language: Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required Improvements as rental property or the homeowner's mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required Improvements as rental property or the homeowner's mortgagee, Owner shall have no further obligations or duties under this Agreement. In addition, upon assignment to any other entity with the written consent of City Council, Owner shall have no further duty or obligation under this Agreement. 3. All terms and conditions of the Agreement that are not expressly amended pursuant to this Amendment shall remain in full force and effect. EXECUTED as of the last date indicated below: CITY OF FORT WORTH: AXEL ALVA Z-TOSTADO By: By: Fernando Costa Axel-Alvarez- ostado Assistant City Manager , Date: .S/6/� - Date: `�r — I H � ' S J FOFFICIAL RECORD CRETARY RTH, TX Page 2 Amendment No. 1 to CSC No.44519 ` Neighborhood Empowerment Zone Tax Abatement Agreement with Axel Alvarez-Tostado APPROVED AS TO FORM AND LEGALITY: 00 01D�_,o By: o� Melinda Ramos V$ 0—! Sr. Assistant City Attorney AtlyeSted by. ,$° _ �OOoocoo o°°° Approved by M&C C-27186 Maty J. Kayser, a FXA§ STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, 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 resolution 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 2015. Notary PubRc infor =o,�a'°°ery TRIKINYA L, JOHNSON the State of Tex ^; 1 Notary Public.Stole of Texas My Commission Expires April 17, 2018 STATE OF TEXAS § COUNTY OF TARRANT § i BEFORE ME, the undersigned authority, on this day personally appeared Axel Alvarez-Tostado, 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. IVEN DER MY HAND AND SEAL OF OFFICE this /�d of 320 Notary Pub 1c in and for IVB. SARAH J.ODLE the State of Texas ,` MY COMMISSION EXPIRES MW "' �r,� ''' N0V85'20'S Page 3 Amendment No. 1 to CSC No.44519 Neighborhood Empowerment Zone Tax Abatement Agreement with Axel Alvarez-Tostado M&C.evs w Page 1 of 1 Official site of the City of Fort Worth,Texas CITY COUNCIL AGENDA Fo TH COUNCIL ACTION: Approved on 2/17/2015 DATE: 2/17/2015 REFERENCE **C-27186 LOG NAME: 17AMEND2915AVEC NO.. CODE: C TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: Authorize Execution of Amendment to Neighborhood Empowerment Zone Tax Abatement Agreement with Axel Alvarez-Tostado, City Secretary Contract No. 44519, to Change the Use From Primary Residence to Rental Property Located at 2915 Ave C in the Polytechnic/Wesleyan Neighborhood Empowerment Zone (COUNCIL DISTRICT 8) RECOMMENDATION: It is recommended that the City Council authorize execution of amendment to Neighborhood Empowerment Zone (NEZ) Tax Abatement Agreement with Axel Alvarez-Tostado, City Secretary Contract No. 44519, to change the use from primary residence to rental property located at 2915 Ave C in the Polytechnic/Wesleyan NEZ. DISCUSSION: On May 7, 2013, (City Secretary Contract No. 44519, M&C C-26237) the City Council authorized execution of a NEZ Tax Abatement Agreement (Agreement) with Axel Alvarez-Tostado for the construction of an approximately 1,300 square foot single family residence (Project). In error, Staff presented the Project to be used as the owners primary residence when the intended use was rental property. Staff recommends amending the Agreement to change the use of the residence to rental property, reflecting the owner's original request. This project is located in COUNCIL DISTRICT 8, Mapsco 78K. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will have no material effect on the City's current year budget. The tax abatement approved in M&C C-26237 will result in the loss of revenue amounting to approximately $2,120.40 over the five-year period. TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Jay Chapa (5804) Cynthia Garcia (8187) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS 2915 Ave C Map.pdf http://apps.cfwnet.org/council_packet/mc—review.asp?ID=20775&council date=2/17/2015 04/30/2015