HomeMy WebLinkAboutPR 13404 EMPOWERMENT ZONEI~TER MEMO TO: Mayor, City Council & City Manager From: Mark T. Sokolow, City Attorney ~ ~ Subject: P. R. No. 13404; Council Meeting January 31, 2006 Date: January 27, 2006 Attached is P. R. No. 13404 establishing a Neighborhood Empowerment Zone under Chapter 378 of the Local Government Code and approving an Incentive Agreement with Legacy Senior Housing of Port Arthur, LP. MTS:ts Attachment cc: VIA FACSIMILE (972) 224-6098 LEGACY SENIOR HOUSING OF PORT ARTHUR, LP z. 13404 .memo P. R. No. 13404 01/25/06 - ts RESOLUTION NO. A RESOLUTION ESTABLISHING A NEIGHBORHOOD EMPOWERMENT ZONE UNDER CHAPTER 378 OF THE LOCAL GOVERNMENT CODE AND APPROVING AN INCENTIVE AGREEMENT WITH LEGACY SENIOR HOUSING OF PORT ARTHUR, LP WHEREAS, the City is authorized under Chapter 378 (Neighborhood Empowerment Zone) of the Local Government Code to create a Neighborhood Empowerment Zone if the City determines that the zone would promote, (1) the creation of affordable housing, (2) an increase in economic development, (3) an increase in the quality of social services, education, or public safety provided to residents in the zone, or (4) the rehabilitation of affordable housing in the zone; and WHEREAS, the City must make certain determinations pertaining to such zone; and, WHEREAS, the City Council desires to approve an incentive agreement for an approximately 12.207 acre tract as denoted in Exhibit "A". NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council of the City of Port Arthur does hereby find and make determinations as follows: z.pr13404 a) That the creation of the zone would promote an increase in economic development in the zone. b) That the creation of the zone benefits and is for the purpose of increasing the public health, safety, and welfare of the persons in the municipality. c) That the creation of the zone satisfies the requirements of Section 312.202 of the Tax Code in that it will likely contribute to the retention or expansion of primary employment or attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City. Section 3. That the boundaries of the Port Arthur Neighborhood Empowerment Zone shall be shown in Exhibit "A". Section 4. That the City Manager is herein authorized to execute the incentive agreement with Legacy Senior Housing of Port Arthur, LP in substantially the same form as describe in Exhibit Section 5. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. RF_2%D, ADOPTED AND APPROVED on this __ day of , A.D., 2006, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor ; z.pr13404 City Council ; ; NOES: OSCAR ORTIZ, MAYOR ATTEST: EVANGELINE GREEN, CITY SECRETARY APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY APPROVED FOR ADMINISTRATION: STEVE FITZGIBBONS, CITY MANAGER z.pr13404 EXHIBIT "A" TO THE RESOLUTION z.pr13404 EXHIBIT "B" TO THE RESOLUTION z.pr13404 INCENTIVE AGREEMENT BETWEEN THE CITY OF PORT ARTHUR AND LEGACY SENIOR HOUSING OF PORT ARTHUR, LP This Incentive Agreement (this "Agreement") is entered into as of February 1, 2006 (the "Effective Date") by and between the City of Port Arthur (the "City"), a Texas municipal corporation of the County of Jefferson and State of Texas, and Legacy Senior Housing of Port Arthur, LP. Article 1. General Provisions 1.01. This Agreement is authorized and governed by (i) Chapter 378 (Neighborhood Empowerment Zone) of the Texas Local Government Code, Sections 378.001 through 378.004 and (ii) Chapter 380 (Miscellaneous Provisions Relating to Municipal Planning and Development) of the Texas Local Government Code, Sections 380.001 through 380.003. 1.02. Legacy Senior Housing of Port Arthur, LP, owns or is negotiating a contract to purchase an approximate 12.07 acre tract (the "Property") in the City of Port Arthur, Jefferson County, Texas described on Exhibit "A" attached hereto and made a part hereof. The Property is situated within the City as a Neighborhood Empowerment Zone, pursuant to Resolution enacted on , 2006. Legacy Senior Housing of Port Arthur, LP, proposes to construct an apartment complex as described in the December 20, 2005 and January 17, 2006 letters of Legacy Senior Housing of Port Arthur attached as Exhibits "B" and "C", which the City has found will contribute to an increase in economic development in the Zone. 1.03. The Property is not part of an improvement project financed with tax increment bonds. 1.04. The Property is not owned or leased by any member of the Port Arthur City Council or any member of the City Planning and Zoning Commission. Article 2. Incentive 2.01. AS an incentive for the construction of the apartment complex in the Zone, the City agrees to pay to Legacy Senior Housing of Port Arthur, LP, the lesser of $38,000 per year or .38 per cent of the increased taxable value on the property caused by the construction, for the time period commencing on January 1st of the year that the apartment complex has received its certificate of occupancy and for ten years thereafter. 2.02. The total funds to be paid by the City shall not exceed $380,000. z. legacy_re fund agreement 2.03. The City will annually pay the amounts as delineated in Section 2.02 to Legacy Senior Housing of Port Arthur, LP, thereof during the Incentive Period within thirty (30) days after receipt of the portion from the taxes paid by Legacy Senior Housing of Port Arthur, LP. 2.04. The City will either pay or waive all City of Port Arthur building permit fees and tap fees to be charged to Legacy Senior Housing of Port Arthur, LP, for the apartment complex. Nevertheless, Legacy Senior Housing of Port Arthur, L?, is responsible to pay for all construction costs, which includes, but is not limited to, the cost to tap into the City's water and sewer system and to pay for all meters and related equipment. The building permit fees and tap fees are estimated at approximately $65,000 based on the preliminary estimate by Legacy's engineer. 2.05. Notwithstanding anything to the contrary contained herein, (i) the completion of the apartment complex with the receipt of a certificate of occupancy pursuant to local, state, and federal regulations and with the dimensions and amenities as substantially described in Exhibits "B" and "C", (ii) the payment of all taxes and utility bills by Legacy Senior Housing of Port Arthur, L? to the City of Port Arthur, and (iii) the maintenance of the facility to local, state and federal requirements are essential obligations of Legacy Senior Housing of Port Arthur, L?, which they have agreed to perform. Article 3. Effect of Sale and Assignment 3.01. Legacy Senior Housing of Port Arthur, LP shall have the right, with City's consent, which will not be unreasonably withheld, to transfer or assign this Agreement to a financially solvent Affiliate or any other solvent business that will occupy the apartment complex for the purpose of operating an apartment complex as a senior development. Article 4. Independent Contractor/Indemnity 4.01. In executing this Agreement and in performing their respective obligations hereunder, the City and Legacy Senior Housing of Port Arthur, LP are acting independently and not in any form of partnership or joint venture. The City assumes no responsibilities or liabilities to any third parties in connection with this Agreement. Article 5. Documentation 5.01. Legacy Senior Housing of Port Arthur, LP will provide documentation to the City as to the specification for the construction, the name of the contractors, the date that construction is commenced and the date construction is completed, and when they pay all local taxes. Legacy Senior Housing of Port Arthur, LP will not be z. legacy_refund agreement 2 paid any funds by the City if they are in arrears in any taxes, utility bills or other charges to the City, and the City can terminate this contract if Legacy fails to pay its taxes, utility bills or other charges, or if Legacy Senior Housing of Port Arthur, LP fails to maintain the property. Article 6. Notice 6.01. Ail notices required or permitted by this Agreement will be delivered either (a) by certified mail, postage prepaid, effective five days after mailing, or (b) by hand delivery or by a nationally recognized overnight courier, in either case effective upon delivery, in all cases addressed as follows (or to such other address as a party may specify to the other party by notice delivered in accordance with the terms hereof): TO LEGACY SENIOR HOUSING OF PORT ARTHUR, LP: LEGACY SENIOR HOUSING OF PORTARTHUR, LP ATTN: Mr. Huelon Harrison 2650 Cedar Crest Blvd. Dallas, Texas 75203 TO THE CITY: CITY OF PORT ARTHD-R ATTN: City Manager 444 4th Street P. O. Box 1089 Port Arthur, TX 77641 Article 7. Miscellaneous 7.01. This Agreement was approved by the City Council of the City of Port Arthur at its meeting by Resolution No. on ,2006. 7.02. If any section, subsection, paragraph, sentence, phrase, or word of this Agreement is held invalid for any reason, the balance of this Agreement will remain in effect and will be read as if the parties intended at all times not to include the invalid section, subsection, paragraph, sentence, phrase, or word. 7.03. This Agreement will be construed under the laws of the State of Texas. 7.04. This Agreement may be executed by the parties in multiple counterparts, all of which counterparts when taken together constituting one Agreement. z. legacy_re fund agreement Article 8. Termination Clauses 8.01. This Agreement can be terminated by the City of Port Arthur if Legacy Senior Housing of Port Arthur, LP does not own the property described in Exhibit "A" by December 1, 2006, does not complete the construction by December 1, 2008, does not maintain the property pursuant to local, state, and federal regulations, does not pay the city its utility bills and taxes, and does not comply with any terms of this agreement. Furthermore, the apartment complex and improvements shall be taxable. 8.02. If the events delineated in Section 8.01 occurs, the City of Port Arthur shall give Legacy Senior Housing of Port Arthur, LP ten (10) days written notice thereof. 8.03. The funds made available herein are subject as to the City's annual budget cycle. SIGNED and AGREED to on the day of , 2006. CITY OF PORT ARTHUR, a Texas Municipal Corporation (the "City") BY: Name: Stephen Fitzgibbons Title: City Manager SIGNED and AGREED to on the day of , 2006. LEGACY SENIOR HOUSING OF PORT ARTHUR, LP BY: Name: Huelon Harrison Title: President z. legacy_refund agreement EXHIBIT "A" z.legacy_refund agreement EXHIBIT z .legacy_refund agreement LEGACY SENIOR HOUSING OF PORT ARTHUR Huelon A. Harrison December 20, 2005 CERTIFIED MAIL RECEIPT Legacypa2006~aol.com 7099 3220 0001 0439 9884 214-450-8200 Mark Sokolow City Attorney 0[~ ~ ? 2005 444 4th St Port Arthur, TX 77640 Dear Mark Sokolow: Pursuant to Section 50.8(d)(3)(B)(ii) through (ix) and/or 50.9(h)(8)(A)(ii)(II-IX) of the 2006 Qualified Allocation Plan, this letter serves as notice that Legacy Senior Housing of Port Arthur, L.P. is making an application for Housing Tax Credits with the Texas Department of Housing and Community Affairs for the Legacy Senior Housing of Port Arthur to be located near the intersection of 9th Avenue and Jimmy Johnson Blvd. This new development is an apartment community serving elderly households. Approximately 140 units will be constructed of which 10% will be for tenants with approximate incomes less than 30% of the area's median income (AMI), 86% will be for tenants with approximate incomes less than 60% of the area's median income, and 4% of the units will be at market rate rents. The total restricted income percentage of the Development is 96%. For single occupants at 30% AMI their income levels will be $10,250 or less; for double occupants at 30% AMI their incomes will be $13,200 or less. The number of units and proposed rents (less utility allowances) for the subject property's tax credit units at 30% AMI: 7 - 1 Bedroom Units 1 Bath for $222/month 7 - 2 Bedroom Units 1 Bath for $270/month For single occupants at 60% AMI their income levels will be $20,520 or less, for double occupants at 60% AMI their incomes will be $26,400 or less. The number of units and proposed rents (less utility allowances) for the subject property's tax credit units at 60% AMI are: 60 1 Bedroom Units 1 Bath for $496/month 60 - 2 Bedroom Units 1 Bath for $600/month The development will also offer market rate units not restricted as to income. The number of units and proposed rents for the subject property's market rate (not-tax credit program) units are: 3 - 1 Bedroom Units 1 Bath for $600/month 3 - 2 Bedroom Units 1 Bath for $700/month Page 2 Mark Sokolow December 20, 2005 If awarded credits, this development would be ready for occupancy by approximately November 2007. For more information on this notice, please contact Legacy Senior Housing of Port Arthur at 2560 Cedar Crest Blvd, Texas 75203, phone number 214-450-8200. For information, see www.tdhca.state.tx.us. Sincerely, Legacy Resource Group EXHIBIT "C" z.legacy_refund agreement £egacy Resource Group January 17, 2006 Mayor Oscar Ortiz and City Council of Port Arthur 444 4th Street Port Arthur, Texas 77640 RE: Support for Legacy Senior Housing of Port Arthur Dear Mayor and Councilmembers: Enclosed for your review and consideration is information relative to a seniors development being proposed for construction within your jurisdiction. We have examined various geographical areas where a project of this magnitude could benefit its citizens and its economy. We consider Port Arthur a prime choice and benefactor for this type of development. This project will not only enhance the quality of life for its tenants, it will compliment the surrounding neighborhood, create jobs, and could stimulate continued development throughout the region. By taking advantage of various state housing programs, we can provide quality housing, social services, and lifestyle at an affordable rate. We are building a community and preserving the legacy. We would appreciate your consideration and support of this most important project for the seniors of Port Arthur. We would like to further discuss the upcoming process and how we, as a team, can work together to make this development a success. If you have any questions, please feel free to contact me via cell at 214-450-8200 or at my office at 214-941-6885. Sincerely, mson Tel214.941.6885 * Fax214.943.8836 * www. legacyresourcegroup.com Legacy Senior Housing of Port Arthur City of Port Arthur Jefferson County, Texas DEVELOPMENT PROFILE A. DEVELOPMENT DESCRIPTION: Legacy Senior Housing is a proposed 126-unit senior independent-living affordable housing community to be located west of Ninth Ave. along Lake Arthur Dr. in the City of Port Arthur, Texas. The development will consist of 8 single-story buildings and one three-story building with a 6,040 sq. ft. Community/Leasing Office/Fitness Center. The development will have the following unit mix: 1 Bedroom/1 Bath 63 [ Units 2 Bedroom/1 Bath 63 Units Total 126 Units The proposed rents for the units are estimated as: 1-Bedroom Llunit 60 $431 $540 2-Bedroom LI unit 60 $516 $630 I-Bedroom MR Unit 3 $540 $540 2-Bedroom MR Unit 3 $630 $630 *LI units are those restricted for seniors with incomes below average median income. MR units are those restricted for seniors with incomes at or above average median income. + Legacy Senior Housing has set aside approximately 85% of its 126 units at rant levels affordable to residents earning 60% or less of the Area Median Income (AMI) and approximately 10% of the units at rent levels affordable to residents earning 50% of the AMI. Therefore, the average rent per month is less than the maximum affordability level for those earning 60% or less of the AMI, which is anticipated to be below market in the subject area sub-market. The proposed Senior Community will have a perimeter fence throughout the development with controlled access gates to the community. The proposed site is a 12.2+/- acre tract of land in the City of Port Arthur. Legacy Senior Housing's density will be approximately 11 units per acre. Legacy Senior Housing DEVELOPMENT PROFILE PAGE2 B. DEVELOPMENT AMENITIES: Clubhouse · Commissary · Social Meeting Room · Activity Center · Fitness Center · Kitchen · Business Center · Fireplace · Health Center · SocialServices · Beauty Salon · Media Room ° Banking Center On -Site · BBQ Grill Areas · Perimeter Fence & · Private Phone & Security · Cable system Limited Access Gates System · Pool · Mail Kiosk · Walking Trail Appliance Packages · Frost Free Refrigerator · Metal Insulated Entry · Free Standing 30" Range · Ice Maker Door & Oven · Disposal · Ceiling Fans · Full-sizeWasher/Dryer · Dishwasher Connections Finishes · Tile Entry · 9 Foot Ceilings · Ceiling Fans · Wall to Wall Carpeting · Mini-Blinds Rooms · Linen Closets · Walk-in Closets (Master · Panty · Balcony only) Electric · All Electric appliances · Individual Hot Water · Individually metered · Energy Efficient HVAC Tanks Parldng 126 parking spaces within the driveways. Energ~ Saving Amenities · R-30 Attic Insulation · Insulated Metal Entry · HVAC Unit with 13 · R-18 Wall Insulation Door SEER rating Leg~ySe~orHousing DEVELOPMENTPROFILE PAGE3 · Dual-Paned Windows · Ceiling Fans in all bedrooms and living areas. Miscellaneous Life Safety Considerations: · Full-view peephole, deadbolt lock at each steel entry door and electric smoke detectors · Security fence/limited access system Landscaping: · Good quality, ground cover and lush landscaping with sprinkler system C. CONSTRUCTION The (8) single story buildings & (1) three story building, with a 6040 square foot Community service center within the Community and on site support services will be built to City of Port Arthur specifications code and a minimum of 75% masonry, 25% siding and pitched roofs. Units will be equipped with frost-free refrigerator; 30" free standing stove/oven, dishwasher disposal, water heater, and energy efficient HVAC and washer/dryer connections. All units will be totally electric and individually metered. Special units and parking areas will be designated for handicapped parking and visitors. D. DEVELOPMENT TEAM The Developer of Legacy Senior Housing is Legacy Senior Housing Development LP, a Texas Corporation. Integrated Construction and Development, an experienced affordable and multi-family General Contractor in the state of Texas, will be the lead General Contractor with assistance by KRR Construction, Inc.; both are Dallas based construction companies. Integrity Management will be the management company selected by Owner. Architet~ura Inc., an experienced premier Architectural designer of similar properties, is currently providing the architectural drawings for Legacy Senior Housing. E. FINANCING Financing for this community will be via Tax Credits through Texas Department of Housing and Community Affairs. Legacy Senior Housing DEVELOPMENT PROFILE PAGE 4 SECTION II: DEVELOPMENT SUMMARY LEGACY SENIOR HOUSING, PORT ARTHUR, TEXAS Project Development Summary , Senior Housing West of Ninth Ave. along Lake Arthur Dr. ' of Port Arthur, Jefferson C~as Senior Housin Develo merit LP. +/- 126 units & (1) T~uilding Architettura, Inc. Diki~ Attached are photographs of a project similar to the proposed Legacy Senior Housing of Port Arthur development. These are photos of the Villas of Bear Creek located in North Richland Hills, Texas. The team that completed the Villas of Bear Creek is principally the same team proposed for the Port Arthur development.