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
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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:
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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 ;
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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
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EXHIBIT "A"
TO THE RESOLUTION
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EXHIBIT "B"
TO THE RESOLUTION
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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.
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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
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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.
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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
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EXHIBIT "A"
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EXHIBIT
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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"
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£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.