HomeMy WebLinkAboutRES 23-288RESOLUTION NO, 23-288
BE IT RESOLVED BY THE CITY COUNCIL
OF THE CITY OF BEAUMONT:
THAT the City Manager be and he is hereby authorized to enter into an agreement with
Beaumont AG, LP for economic development incentives to include; building fee waivers (not
including tap and meter fees) and expedited permit review; under the Neighborhood Empowerment
Zone Program for the development of an apartment complex at 4390 W. Cardinal Drive.
The n-teeting at which this resolution was approved was in all things conducted in strict
compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551.
PASSED BY THE CITY COUNCIL of the City of B
2023.
this the I Oth day of October,
- Mayor Roy West
DocuS[gn Fnvotope 10:5BC623BA-Flu3-444C-AD39-2FBD97951367
RICII W1Y11 oPPo117 UNITY
111114111100(
T ` E ` x ' " - 0 CITY OF BEAUMONT
APPLICATION FOR NEIGHBORHOOD
EMPOWERMENT ZONE DEVELOPMENT INCENTIVES
The purpose of this application is to present to the City of Beaumont a reasonably
comprehensive outline of the project for which the incentives are requested, Please
review the Neighborhood Empowerment Zone guidelines carefiilly before completing
this application. If additional space is needed, separate sheets may be attached.
Types of incentives that you are seeking:
x Building Fee Waivers
x Expedited Permit Review
Lien Waiver's
Tax Abatement
DESCRIPTION OF PROJECT
1. Legal name and address of applicant:
Beaumont AG, LP; 9 Greenway Plaza, Suite 1250, Houston, Texas 77046
2. Type of organization (Corporation, Ltd. Partnership, etc.):
Partnership
3. Date organization formed:
Beaumont AG, LP request to form the entity was submitted on September 13,
2023 and is under review with the Secretary of State.
4. Address and telephone number of headquarters location:
9 Greenway Plaza, Suite 1250, Houston, Texas 77046; 409-724-0020
5. State(s) in which business is registered:
Texas
6. Other locations of this business (names of cities):
NIA
7. Is business current with all taxes?
Beaumont AG, LP is a newly formed entity with no taxes to report at this time
8. Name, address, and telephone number of principal officers:
Christopher A. Akbari, Manager; 9 Greenway Plaza, Suite 1250, Houston,
Texas 77046; 832-941-5343; rtpr )s <Diic�3p.co:lr
9. Name, address & phone number of designated contact Berson:
Keimy Baugh, Vice President; 9 Greenway Plaza, Suite 1250, Houston,
Texas 77046; 832-941-5351; gi-P.ctAll
10. Type of business to be conducted and goods or services to be produced or provided:
Proposed new construction of 61 unit elevator served multifamily residential
development project age -restricted (554-)
11. Location of project (street address):
4390 West Cardinal Drive, Beaumont, Jefferson County, Texas 77705
12. Legal (lot, block & subdivision) description of the project (Attach plat of property):
Full legal description and survey attached
13. Identify and describe the kind, number and location of all improvements to the
physical property and discuss the development schedule of the proposed improvements.
Please see Exhibit A site plan and description
14. What infrastructure construction will be required to serve the proposed project? What
is the estimated cost of this construction? Underground water, storm sewer, and sanitary
sewer: $495,000 and Driveway, parking, and walk paving: $478,000
15. Estimated construction commencement date:
November 30, 2023
16. Estimated construction completion date:
November 30, 2024
17. Estimated date for project to be operational:
December 1, 2024
18. City liens requested to be released:
None
EMPLOYMENT IMPACT (fox- Noun -residential Projects)
19. What is the estimated number of permanent full-time new jobs that will be created?
Approximately 2 full-time jobs
20. What percentage of employees do you anticipate will be residents living in:
(a) the Neighborhood Empowerment Zone — There is a possibility for 100%
(b) City of Beaumont — 100%
(c) Jefferson County -.. 100%
(d) Outside Jefferson County
2
Docu5ign Envelope 1D: 5EC623EA-Fi63.444C-AD"-2FBD97951367
21. How many new, temporary and part-time jobs will be created in Beaumont?
Anticipate approximately 40 new temporary jobs.
22. What types of jobs will be created?
Full Time Jobs: Property Manager, Property Maintenance
Temporary Jobs: Construction Supervisor, Construction Project Manager,
subcontractors laborers
23. What will be the total project annual payroll of the newly created jobs?
Approximately $80,000 for the Permanent Full Time Jobs.
24. Will specialized training be required? If so, what type?
Yes, CAM - Certified Apartment Manager & CAMT Certified Maintenance
Technician
FISCAL IMPACT
25. Is there an anticipated cost to the City of Beaumont for providing municipal services
to the proposed project?
No, this project does not anticipate any costs to the City for iunicipal services.
COMMUNITY IMPACT
28, Do you anticipate the proposed project having a substantial impact on the local
residential, commercial or retail market?
No, we do not foresee any impact on the local residential, commercial or retail
market.
29. Will rezoning and platting/rcplatting be required?
No rezoning/platting/replattirlg will not be require([.
It is understood that the information provided herein is based on estimates and
projections, but that such estimates and projections have been f illy investigated and are
made in good faith as to their accuracy. It is further understood that any information
provided herein that is actual and not estimated is represented to be true and correct. Any
information herein, which is misrepresented as true and correct or for which there is no
good faitll basis, may result in the denial of consideration for or termination of incentive
agreement.
�oCuBlq�:ed by:
s 617 U0�L�2F940A.,,
� lgl]aCll l e
9/27/2023 1 3:51 Pik CDT
Date
3
DocuSlgn Envelope ID; 5EC623EA-FI63-444C-AD39.2FSD97951367
If you lave any questions about this application please call the Community Development
Department at (409) 880-3762,
CITY OF BEAUMONT STAFF RECOMMENDATION(S) AND/OR COMMENT(S):
(To be completed by City of Beaumont Staff Only)
2. Recommendation:
Approve
Disapprove
Comments:
4
Exhibit A
Site Plan and Description
Abiding Grace is a proposed new construction of a 61 unit elevator served
multifamily residential development project. Construction is planned to
begin November 30, 2023 and complete by December 1., 2024 for a twelve
month construction time frame. Please see attached site plan for the
planned improvements to the site,
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DoeuSicgn Envelope ID: 5EC623EA-F163.4440-AD39-2FSD97959367
Survey and Legal Description
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DocuSrgn Envoiopo 1D. 6EC323EA-FI03.444C-AD39-2FBD379513t37
BEING 8,012 (Called 8,011) acres of land out of and a part of Tracts 5-A and 6-A, Partition Map No. 1,
McFaddin Trust, City of Beaumont, recorded In Volume 7, Page 132, Map Records, Jefferson County,
Texas and part of an abandoned right of way known as Street No. 4, recorded in Volume 1149, Page 623,
Deed Records, Jefferson County, Texas, being the same tract of land described in a deed to ITEX Partners
Holdings, LLC recorded in File No. 2016011026, Official Public Records, Jefferson County, Texas; said
8.012 acre tract being more fully described by metes and bounds as follows, to wit;
Note: Bearings, coordinates, distances and acreage are based on the Texas Coordinate System of 1983,
South Central Zone, US Survey Feet, and are referenced to SmartNet, North America.
BEGINNING at a 1" steel pipe found for the Southeast corner of a (Called 1.300) acre tract of land
described in a deed to Tiger's Lalr, LP, recorded In File No, 2002019216, Official Public Records, Jefferson
County, Texas on the Northerly right of way line of a dedicated road named U.S. Highway 69, 96, 287
(a.k.a. Cardinal Drive or Loop 251); said 1" steel pipe being the Southwest corner of the herein described
tract; having a Texas Coordinate of N: 13958664.05, E; 3509059.34;
THENCE, North 02 deg,, 44 min., 47 sec., West, (Called North 02 deg., 45 min., 03 sec., West) on the East
line of the (Called 1,300) acre tract, a distance of 391.12 (Called 391,10') to a %" steel rod, capped and
marked "SOUTEX", found for the Northwest corner of the herein described tract; from which a Y:" steel
rod, capped and marked "FAUST", found for the Northeast corner of the (Called 1.300) acre bears North
02 deg., 40 min., 25 sec., West, a distance of 61.10';
THENCE, North 86 deg., 49 min,, 56 sec., East (Called North 86 deg., 49 min., 40 sec., East) a distance of
727.46' (Called 727.40') to a W'steel rod, capped and marked "SOUTEX", found on the West line of a
(Called 13,020) acre tract of land described In a deed to Beaumont Gracelake Townhomes, LP, recorded
In File No, 2010036210, Official Public Records, Jefferson County, Texas;
THENCE, South 03 deg., 19 min., 1.5 sec., East (Called South 03 deg., 20 min., 02 sec., East) on the West
line of the (Called 13.020) acre tract, a distance of 1.85.61' to a Y2" steel rod, capped and marked
"SOUTEX", set for the Southwest corner of the (Called 13,020) acre tract and the Northwest corner of a
(Called 7.802) acre tract of land described In a deed to Antioch Missionary Baptist Church of Beaumont,
Texas, recorded in File No, 2010033836, Official Public Records, Jefferson County, Texas;
THENCE, South 03 deg.,18 min., 44 sec., East (Called South 03 deg., 19 min., 31 sec,, East) on the West
line of the (Called 7.802) acre tract, a distance of 379.88' (Called 379.82') to a %" steel rod, capped and
marked "SOUTEX", found for the Southwest corner of the (Called 7.802) acre tract on the North right of
way line of said Cardinal Drive;
DoouSlgn Envelope ID: 6ECO23EA-FI63.444C-AD39.2FBD97961367
THENCE, North 79 deg., 45 min., 54 sec., West (Called North 79 deg., 46 min., 24 sec., West) on the
Northerly right of way line of said Cardinal Drive, a distance of 752,28' (Called 752.29') to the POINT OF
BEGINNING and containing 8,012 acres of land, more or less.
131071 IWITH 01111ORTU ITY
T • E • X - A • S
City of Beaumont
Neighborhood Empowerment Zone
Incentive Policy
Program Goals:
It is the City of Beaumont's goal to promote development within its Neighborhood
Empowerment Zones in an effort to improve the local economy and enhance the quality
of life for its citizens. Insofar as these goals are served by enhancing the value of the local
tax base and increasing economic opportunities, the City of Beaumont will give
consideration to providing the following incentives for development within
Neighborhood Ennpowerment Zones.
Definitions:
A. Abatement: full or partial exemption for ad valorem taxes of eligible properties in a
reinvestment zone designated as such for economic development purposes.
B. Agreement: a contractual agreement between a property owner and a taxing
jurisdiction for the purpose of a tax abatement.
C. Base Year Value: the assessed value of either the applicant's real property and
improvements located in a designated reinvestment zone on January 1 of the year prior to
the execution of the agreement plus the agreed upon value of any property improvements
made after January 1 of that year but before the execution of the agreement, and/or the
assessed value of any tangible personal property located on the owner's real property on
January 1 of the year prior to the abatement period covered by the agreement.
D. Facility: property improvements completed or in the process of construction which
together comprise an integral whole.
E. Incremental Value: the amount of assessed value of the project that is in addition to the
Base Year Value of applicant's real property at their prior location.
F. Neighborhood Empowerment Zone: is an area designated as such for the purpose of
providing economic incentives, including a tax abatement, as authorized by the City of
Beaumont in accordance with Texas Local Government Code Annotated Section 378 as
amended.
G. Real Property: area of land defined by legal description as being owned by the person
applying for a tax abatement, including any improvements thereto, which is to be
improved and valued for property tax purposes, and which is to be included in the
Neighborhood Empowerment Zone.
H. Substantial Investment: a project deemed as an eligible facility under this policy, that
exceeds $5,000,000 in capital investment.
Program Policy:
It is the policy of the City of Beaumont that consideration will be provided in accordance
with the guidelines, criteria and procedures outlined in this document. This policy applies
to the owners of real property. Project consideration will include the potential impact of
the reinvestment project on the immediate and surrounding area.
A. Authorized Facility: Neighborhood Empowerment Zone Incentives may be granted
within a Neighborhood Empowerment Zone for new construction or renovation of single-
family uses for investments of $50,000 or greater and may be granted for all other uses
for investment of $75,000 or greater.
B, Eligible Property: Neighborhood Empowerment Zone Incentives may be granted for
new construction or renovation of owner -occupied single-family homes, office, retail,
hotel and meetinj facilities, restaurant and multi -family residential facilities within a
Neighborhood Empowerment Zone, designated by the City Council of the City of
Beaumont, Texas.
C. No incentives shall be granted for development resulting from the relocation of an
eligible facility from one area of the city to within the Neighborhood Empowerment
Zone, excepting projects considered "Substantial Investments," as defined herein.
Procedural Guidelines:
Any person, partnership, organization, corporation or other entity desiring that the City of
Beaumont consider providing Neighborhood Empowerment Zone incentives shall be
required to comply with the following procedural guidelines. No representations made
herein considered binding unless and until approved by the City of Beaumont City
Council.
Preliminary Application:
Applicants shalt submit a completed "Application for Neighborhood Empowerment Zone
Development Incentives" form for consideration of incentives to the Community
Development Department of the City of Beaumont, 901 Main Street, Beaumont, Texas
77701.
2
Consideration of the Application:
A, The City Manager will consider requests for incentives in accordance with these
policies, pursuant to Chapter 378 of the Texas Local Government Code, Additional
information may be requested as needed.
B, The City Council may eater• into an agreement that outlines the terms and conditions
between the City and the applicant, and governs the provision of the incentives.
Inspection of the Project:
During the term of such agreement, the City of Beaumont will have the right to inspect
the project facility during regular business hour's to ensure compliance with the
agreement and accuracy of the owner certification.
Recapture:
If a project is not connpleted as specified, or if the terms of the incentive agreement are
not met, the City has the right to cancel or amend the incentive agreement and all
previously waived fees and abated taxes shall become due to the City and liens may be
reattached.
Effect of Sale, assignment or lease of property:
No incentive rights may be sold or assigned without the approval of the City Council,
Any sale, assignment or lease of the property may result in execution of the recapture
provision, as outlined above.
Types of Incentives Available:
Building Fee Waivers
The Building Construction Fee Waiver Program affords property owners an exemption
from planning and building fees associated with new construction or renovation and
occupancy of eligible facilities within the target area.
Expedited Permit Reviews:
In order to facilitate redevelopment within the Neighborhood Empowerment Zones, the
Community Development Departrnnent is committed to assisting applicants through the
planning and permit review process as quickly as possible.
Lien Waivers
In order to render properties with Neighborhood Empowerment Zones more marketable,
the Lien Waiver Program affords property owners a release of liens attached to properties
as the result of demolitions or expenditures associated with cutting high grass. Release of
such liens would only be allowed in conjunction with new construction or renovation of
eligible facilities within the target area.
Construction Tax Abatement
The Construction Tax Abatement Program is an economic development tool designed to
provide incentives for the new construction or renovation of single-family homes, office,
retail, restaurant and multi -family residential facilities within a Neighborhood
Empowerment Zone. The Construction Tax Abatement Program is intended to contribute
to area development by attracting additional capital and human investment to the area as
well as additional residents to support economic development activities within the area.
Value of Abatements: authorized facilities may be granted a municipal tax abatement on
all or a portion of the increased taxable value of eligible property over the base year value
for a period not to exceed three (3) years, except as outlined below.
Tax Abatement Program Guidelines:
The eligibility requirements are as follows:
Investment
Municipal Tax Abatement
Schedule
$50,000 & tip for residential uses and
100%; or 100% of the incremental value for Substantial
lit Year
$75,000 & up for all other uses
Investments relocating within the City_
�$50,000 & up for residential uses and
100%; or 100% of the incremental value for Substantial
2 Year
$75,000 & up for all other use
Investments relocating within the City_
$50,000 & up for residential uses and
100%; or 100% of the incremental value for Substantial
3r Year
$75,000 & up for all other uses
Investments relocating within the City.
$5,000,000 or more for any eligible
100% for new investments and the incremental value for
I
01 Year
use
Substantial Investments relocating within the City.
$5,000,000 or more for any eligible
100% for new investments and the in value for
use
Substantial investments relocating within the City.
StyYear
$5,000,000 or more for any eligible
100% for new investments and the incremental value for
tt,
6 Year
use
Substantial investments relocating within the City.
($5,000,000 or more for any eligible
1100% for new investments and the incremental value for
7ch� Year
use
Substantial Investments relocating within the City.
4
Abatement Program Considerations:
A. The final valuation determined by the Jefferson County Appraisal District will be used
to determine the actual yearly tax abatement exemption.
B. The tax abater-ient shall be granted only to the owner of the property.
C. No tax abatement exemption shall be effective until the applicant has met all of the
eligibility requirements contained in the guidelines and policies, state law, and City of
Beaumont codes.
D. There shall be no retroactive tax abatement exemptions -- all tax abatement
exemptions become effective only on or after the date the City Council approves the tax
abatement agreement.
B. The applicant shall agree to hold the City of Beaumont, its agents, employees and
public officials harmless and pay all attorneys' fecs that are generated by any dispute
regarding the tax abatement agreement.
F. Personal and or real property identified before the period covered by the abatement
agreement will not be eligible for abatement.
5
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
hone -rule city and municipal corporation of Jefferson County, Texas, acting herein by
and through its City Manager, hereinafter referred to as "City," and ITEX PARTNERS
HOLDINGS, LLC, 3735 Honeywood Trail, Port Arthur, Texas, hereinafter referred to as
"Property Owner;" collectively as the "Parties."
WITNESSETH:
WHEREAS, On the tenth day of October, 2023, the City Council of the City of
Beaumont, Texas, passed Ordinance No. , establishing the boundaries of
Empowerment Zone Number Two, for building permit fees to be waived, excluding tap
and meter fees, and expedited permit reviews as authorized by Chapter 378 of the Texas
Local Govermi-ient Code, et seq, as amended, hereinafter referred to as "Statute,"
WHEREAS, in order to maintain and/or enhance the local economy and/or
provide quality, affordable housing, in accordance with said Ordinance and Statute, the
City, and the Property Owner, do mutually agree as follows:
1. The property, known as the "Premises" to be the subject of this Agreement
shall be the property at 4390 W. Cardinal Drive, Beaumont, Texas and described as part
of Tracts 5-A and 6-A, Partition Map No. 1, McFaddin Trust, and part of an abandoned
right-of-way, City of Beaumont, Jefferson County, Texas.
2. The Property Owner shall cause to be developed an apartment complex
intended to house and accommodate individuals over the age of 55, known herein as the
"Project," on the Premises and shall not have a construction cost less than $75,000,00 and
shall be completed not later than January 1, 2025, subject to delays caused by force
majeure or by factors beyond Property Owner's or Business Owner's reasonable control.
3. The Property Owner agrees to pursue these improvements as good and
valuable consideration of this Agreement.
4. In the event that the Project and improvements for which a waiver of building
permit fees has been granted are not completed in accordance with this Agreement, then
this Agreement shall be subject to termination and all delinquent fees which otherwise
would have been paid to the City without the benefit of a waiver will become a debt to
the City and shall be due, owing and paid to the City within sixty (60) days of any such
event. In the event that the Property Owner defaults in the terms and conditions of this
Agreement, the City shall give the Property Owner written notice of such default and if
the Property Owner has not cured such default within thirty (30) days of said written
notice, this Agreement may be terminated by the City. Notices shall be in writing and
shall be delivered by personal delivery or certified mail addressed as follows:
Kenny Baugh
Beaumont AG, LP
9 Greenway Plaza, Suite 1250
Houston, Texas 77046
Christopher A. Akbari
ITEX PARTNERS HOLDINGS, LLC
3735 Honeywood Trail
Port Arthur, Texas 77642
5. In the event that the City should fail to timely or substantially comply with any
one or more of the requirements, obligations, duties, terms, conditions, or warranties of
this Agreement, such failures shall be an Act of Default by the City and the City shall
have ninety (90) days to cure and remove the Default upon receipt of written notice to do
so from the Property Owner. The Property Owner specifically agree that the City shall
only be liable to the Property Owner for the amount of waivers, outlined herein,
attorney's fees, and costs of court, shall not be liable to the Property Owner for any
alleged consequential damages. The Property Owner hereby waives any rights or
W
remedies available to it at law or in equity. Notices shall be in writing and shall be
delivered by personal delivery or certified mail addressed as follows:
Kenneth R. Williams, City Manager
City of Beaumont
801 Main, Smite 201
Beaumont, TX 77701
6. The terms and conditions of this Agreement are binding upon the successors
and assignees of all parties hereto. Other than assignment to Beaumont AG, LP,
hereinafter referred to as "Business Owner,", this Agreement cannot be assigned by the
Property Owner or Business Owner to anyone or any entity which is not an affiliate of
Business Owner, unless written permission is first granted by the City, which permission
shall be in the sole discretion of the City. Any assignment occurring within the scope of
this Agreement transfers all rights, responsibilities, and obligations heretofore granted to
Property Owner to the assignee, and the assignee shall, for purposes of this Agreement,
be then known as "Property Owner."
7. THE PROPERTY OWNER AGREES TO HOLD THE CITY
HARMLESS FROM ANY AND ALL KINDS OF CLAIMS, LOSSES, DAMAGES,
INJURIES (INCLUDING DEATH), SUITS, OR JUDGEMENTS INVOLVING
THE CITY AND RELATING TO SUCH IMPROVEMENTS.
8. The City shall have reasonable right to inspect the Premises and Project during
regular daylight hours to ensure that the improvements are made according to the terms
of this Agreement. In addition, the Property Owner agrees to provide records and
documentation to the City, sufficient to verify improvements and employment data in
order to ensure performance under this Agreement. f
9. Exemption from planning and building fees associated with new construction,
though not including water tap fees, shall be made as part of this Agreement.
10, In addition, the City and the Property Owner agree to cooperate with one
another to facilitate the expeditious processing of permits, including zoning applications
(s), subdivision applications, plat approvals, development application(s), and building
permit applications required for the completion of the project, in accordance with State
Statutes and City Ordinances.
11, The City and the Property Owner each agree to act in good faith and to do all
things reasonably necessary or appropriate to carry out the terms and provisions of this
Agreement, and to aid and assist the other in carrying out such terms and provisions in
order to put the other in the same condition contemplated by this Agreement,
12, If the Property Owner elects not to proceed with the development of the
project as contemplated by this Agreement, the Property Owner will notify all Parties in
writing and the obligations of either the Property Owner and the City will be deemed
terminated and of no further force or effect as of the date of such notice, except those that
expressly survive the termination hereof, if any,
13. Nothing in this Agreement is intended to create or establish a joint venture
between the Parties.
14. This Agrecment was authorized by resolution of the City Council at its
meeting on the , authorizing the City Manager to execute the
Agreement on behalf of the City.
15. This shall constitute a valid and binding agreement between the City and the
Property Owner when executed on behalf of said parties, for the abatement of City ad
valorem taxes in accordance therewith. This document and any documents referenced
herein shall represent the entirety of the Agreement between the Parties. Any
amendments, addendums, or material changes shall be in writing and require the consent
and approval of all Parties.
The Agreement is performable in Jefferson County, Texas, witness our hands
This day of ,
CITY OF BEAUMONT
4
By:
ATTEST:
Tina Broussard
City Clerk
PROPERTY OWNERS
Kenneth R. Williams
City Manager
51
ITEX PARTNERS HOLDINGS, LLC
By: The ITEX Group Management, LLC,
Manager
By: Chfistopher Akbari, Manager
ATTEST:
5
STATE OF TEXAS
COUNTY OF JEFFERSON
AGREEMENT
This Agreement is entered into by and between the City of Beaumont, Texas, a
home -rule city and municipal corporation of Jefferson County, Texas, acting herein by
and through its City Manager, hereinafter referred to as "City," and ITEX PARTNERS
HOLDINGS, LLC, 3735 Honeywood Trail, Port Arthur, Texas, hereinafter referred to as
"Property Owner;" collectively as the "Parties."
WITNESSETH:
WHEREAS, On the tenth day of October, 2023, the City Council of the City of
Beaumont, Texas, passed4k4i4a4aG&No,q �!&stablishing the boundaries of
Empowerment Zone Number Two, for building permit fees to be waived, excluding tap
and meter fees, and expedited permit reviews as authorized by Chapter 378 of the Texas
Local Government Code, ct seq, as amended, hereinafter referred to as "Statute,"
WHEREAS, in order to maintain and/or enhance the local economy and/or
provide duality, affordable housing, in accordance with said Ordinance and Statute, the
City, and the Property Owner, do mutually agree as follows:
1. The property, known as the "Premises" to be the subject of this Agreement
shall be the property at 4390 W. Cardinal Drive, Beaumont, Texas and described as part
of Tracts 5-A and 6-A, Partition Map No. 1, McFaddin Trust, and part of an abandoned
right-of-way, City of Beaumont, Jefferson County, Texas.
2, The Property Owner shall cause to be developed an apartment complex
intended to house and accommodate individuals over the age of 55, known herein as the
"Project," on the Premises and shall not have a construction cost less than $75,000,00 and
shall be completed not later than January 1, 2025, subject to delays caused by force
majeure or by factors beyond Property Owner's or Business Owner's reasonable control.
3. The Property Owner agrees to pursue these improvements as good and
valuable consideration of this Agreement.
4. In the event that the Project and improvements for which a waiver of building
permit fees has been granted are not completed in accordance with this Agreement, then -
this Agreen-ient shall be subject to termination and all delinquent fees which otherwise
would have been paid to the City without the benefit of a waiver will become a debt to
the City and shall be due, owing and paid to the City within sixty (60) days of any such
event. In the event that the Property Owner defaults in the terms and conditions of this
Agreen-tent, the City shall give the Property Owner written notice of such default and if
the Property Owner has not cured such default within thirty (30) days of said written
notice, this Agreement may be terminated by the City. Notices shall be in writing and
shall be delivered by personal delivery or certified mail addressed as follows;
Kenny Baugh
Beaumont AG, LP
9 Greenway Plaza, Suite 1250
Houston, Texas 77046
Christopher A. Akbari
ITEX PARTNERS HOLDINGS, LLC
3735 Honeywood Trail
Port Arthur, Texas 77642
5. In the event that the City should fail to timely or substantially comply with any
one or more of the requirements, obligations, duties, terms, conditions, or warranties of
this Agreement, such failures shall be an Act of Default by the City and the City shall
have ninety (90) days to cure and remove the Default upon receipt of written notice to do
so from the Property Owner, The Property Owner specifically agree that the City shall
only be liable to the Property Owner for the amount of waivers, outlined herein,
attorney's fees, and costs of court, shall not be liable to the Property Owner for any
alleged consequential damages. The Property Owner hereby waives any rights or
2
remedies available to it at law or in equity, Notices shall be in writing and shall be
delivered by personal delivery or certified nail addressed as follows;
Kenneth R, Williams, City Manager
City Or Beaumont
801 Main, Suite 201
Beaumont, TX 77701
6. The terms and conditions of this Agreement are binding upon the successors
and assignees of all parties hereto, Other than assignment to Beaumont AG, LP,
thereinafter referred to as `Business Owner," this Agreement cannot be assigned by the
Property Owner or Business Owner to anyone or any entity which is not an affiliate of
Business Owner, unless written permission is first granted by the City, which permission
shall be in the sole discretion of the City, Any assignment occurring within the scope of
this Agreement transfers all rights, responsibilities, and obligations heretofore granted to
Property Owner to the assignee, and the assignee shall, for piirposes of this Agreement,
be then known as "Property Owner,"
7. THE PROPERTY OWNER AGREES TO HOLD THE CITY
HARMLESS FROM ANY AND ALL KINDS OF CLAIMS, LOSSES, DAMAGES,
INJURIES (INCLUDING DEATH), SUITS, OR JUDGEMENTS INVOLVING
THE CITY AND RELATING TO SUCH IMPROVEMENTS.
8, The City shall have reasonable right to inspect the Premises and Project during
regular daylight hours to ensure that the improvements are made according to the terins
of this Agreement, In addition, the Property Owner agrees to provide records and
documentation to the City, sufficient to verify iiprovements and employment data in
order to ensure performance under this Agreenent,
9. Exemption from planning and building fees associated with new construction,
though not including water tap fees, shall be made as part of this Agreement.
10, In addition, the City and the Property Owner agree to cooperate with one
another to facilitate the expeditious processing of permits, including zoning applications
(s), subdivision applications, plat approvals, development application(s), and building
permit applications required for the completion of the project, in accordance with State
Statutes and City Ordinances,
11. The City and the Property Owner each agree to act in good faith and to do all
things reasonably necessary or appropriate to carry out the terms and provisions of this
Agreement, and to aid and assist the other in carrying out such terms and provisions in
order to put the other in the same condition contemplated by this Agreement.
12. If the Property Owner elects not to proceed with the development of the
project as contemplated by this Agreement, the Property Owner will Notify all Parties in
writing and the obligations of either the Property Owner and the City will be deemed
terminated and of no further- force or effect as of the date of such notice, except those that
expressly survive the termination hereof, if any.
13. Nothing in this Agreement is intended to create or establish a joint venture
between the Parties.
14. This Agreement was authorized by resolution of the City Council at its
meeting on the f /0, 9Od3, authorizing the City Manager to execute the
Agreement on behalf of the City.
15. This shall constitute a valid and binding agreement between the City and the
Property Owner when executed on behalf of said patties, for the abated-ent of City ad
valorem taxes in accordance therewith. This document and any doetunents referenced
herein shall represent the entirety of the Agreement between the Parties. Any
amendments, addendums, or material changes shall be in writing and require the consent
and approval of all Parties.
The Agreement is performable in Jefferson County, Texas, witness our hands
This IT day of ()golf. , 2023,
CITY Or BEAUMONT
M
By:
ATTEST;
a -A, v M61A�
Tina Broussard
City Clerlc
PROPERTY OWNERS
Kenneth R. Williams
City Manager
TTEX PARTNERS HOLDINGS, LLC
By; The TTEX Group Management, LLC,
Manager
By; Christopher Akbari, Manager
ATTEST: