HomeMy WebLinkAboutPR 13827: ONE SOUTHWOODinteroffice
MEMORANDUM
To: Mayor, City Council, and City Manager
From: Mark T. Sokolow, City Attorney /~ ~-~_~
Date: October 6, 2006
Subject: P. R. No. 13827; Council Meeting October 10, 2006
Attached is P. R. 13827 concerning One Southwood Crossing,
LP.
MTS:gt
Attachment
cc: Ike Akbari
z.pr13827_mano
K.T. "Ik~" Akbarl
October 3, 2006
Via Fax (409) 982-6743
Mr. St~ve Fitzgibbons
City Manager
City of Port Arthur
P. O. Box 1089
Port Arthur, Texas 77642
Re: One Southwood Crossing
Port Arthur, Texas
Dear Mr. Fitzgibbons:
I appreciate your time to discuss the real estate tax exemption for One Southwood
Crossing. The general partner of One Southwood Crossing is an entity of the Port Arthur Housing
Authority that was established to provide affordable housing.
As I brought to your attention, our estimate for property taxes based on our application was
approximately $70,000.00 annually. Out of that we calculated approximately $20,000.00 would
be the City's share of taxes.
In order to help the affordability of this project we believe a pilot agreement with the City
to pay $15,000.00 with an additional $10,000.00 payment based on availability of net cash flow
would definitely be of help to this project. Under this pilot agreement we would request the City
to pass a resolution (copy of which has been given to the City Attorney) approving this action.
Also, under this revised resolution the City would not be obligated to waive any permit or
connection fees. We believe this agreement would help the City recover over 100% of the taxes.
K. T. Akbari
KTMgb
C: Mr. Mark Soldow, City Attorney (Via Fax (409) 983-8124
EO. Box 1363, Nederland, TX 77627 * 2901 Turtle Creek Drive Suite 106, Port Arthur, TX 77642
(409) 724-0020, Ext. 115 · Fax: (409) 721-6603
P. R. No. 13827
MTS 10/06/06
RESOLUTION CONCERNING
ONE SOUTItV~OOD CROSSING, LP
WHEREAS, the governing body of the City of Port Arthur (the "Unit") has been apprised
of the award for low income housing tax credits (the "Application") received by One Southwood
Crossing, LP (the "Owner") from the Texas Department of Housing and Community Affairs
("TDHCA");
WHEREAS, the Owner shall be a multi-family affordable housing complex to be known as
Southwood Crossing Apartments Phase lI (the "Development");
WHEREAS, the Housing Authority of the City of Pon Arthur (the "HAPA") is a body public
corporate and recognized as a properly created governmental instrumentality created by the Unit;
WHEREAS, the general partner of the Owner is a subsidiary of the HAPA;
WHEREAS, any land owned and operated by the HAPA qualifies for a governmental
exemption from ad valorem taxes;
WHEREAS, this Unit has acknowledged and approved the construction of the Development
within one linear mile of Southwood Crossing, LP, an affordable housing complex which received
an award of tax credits within the last three year period;
WHEREAS, the Unit has committed to participate in the Development through in-kind or
cash payments in an amount not to exceed $296,000; and
WHERAS, the Unit desires to assign its commitment to HAPA to satisfy any obligations of
the local political subdivision of funds for the Development.
THEREFORE, BE IT RESOLVED THAT:
Section 1. The Unit hereby assigns to the HAPA its commitment to provide funds to the
Development and authorizes that said funds shall satisfy any obligation of funds from the Unit to
the Development.
Section 2. The Unit acknowledges that the Development shall be owned by Owner
whose general panner is a subsidiary of HAPA and therefore qualifies for an exemption of ad
valorem taxes as long as HAPA or its subsidiary is the general partner or owner of the Development.
Section 3. That this Resolution is contingent on HAPA and One Southwood Crossing LP
agreeing to pay to the City of Pon Arthur $15,000 per year by March 1st of each year as to the prior
year's taxes that would have been due on the property if it had remained on the tax rolls as well as an
additional $10,000 per year based on the availability of net cash flow.
853969_l_One_Southwood_Crossing_Resolution
Section 4. That the first payment shall be due on March 1, 2008 and the payments shall
continue until March 1, 2023.
Section 5. That One Southwood Crossing LP and HAPA shall sign this Resolution
agreeing to the terms hereof.
Section 6. That a copy of the caption of this Resolution shall be spread upon the Minutes
of the City Council.
PASSED this day of ,2006.
Oscar O~tiz, Mayor
ATTEST:
Evangeline Green, City Secretary
Approved as to Form:
Mark T. Sokolow, City Attorney
Approved for Administration
Stephen Fitzgibbons, City Manager
Agreed to:
Housing Authority of the City of Port Arthur
One Southwood Crossing LP
853969_ 1 _One_Southwood_Crossing_Resolution