HomeMy WebLinkAboutContract 47822 CITY SEG RZETAIRW
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TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
200 Carroll Street
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between
the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized
under the laws of the State of Texas and acting by and through David Cooke, its duly authorized City
Manager, and 200 Carroll FW Investors, LLC, ("Owner") of property located at 200 Carroll Street,
Lots 8-10, Block 7, Weisenberger Addition, an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the Plat recorded in Volume 388A, Page 120, Plat Records, Tarrant County,
Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone if the municipality determines that the creation of the zone would
promote:
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a Neighborhood Empowerment Zone, stating that the City elects to be
eligible to participate in tax abatement and including guidelines and criteria governing tan abatement
agreements entered into between the City and various third parties, titled "Neighborhood
Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were readopted on May 19,
2015 (Resolution No. 4455).
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
Code, as amended (the"Code").
E. On December 7, 2010, the City Council adopted Ordinance No. 19466 ("Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 15R," City of Fort Worth, Texas
("Zone") and adopted Resolution No. 3950 establishing "Designation of Trinity Park Area as a
Neighborhood Empowerment Zone" ("NEZ"). This reinvestment zone was renewed on January 26,
2016,by the City Council and the adopted Ordinance No.220
OFFICIAL RECORD
CITY SECRETARY
g FT. WORTH, TX MAY p4 ftPae 1 of 13
NEZ Tax Abatement with 200 Carroll FW Inve , , 1 Street `,�F b rwor,
Approved by M&C C-27786,May 3, 2016 '`'�
F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit"I", attached hereto and hereby made a part of this Agreement for all
purposes (the "Premises").
G. Owner or its assigns plan to construct a two-story commercial building for office use,
more particularly described in Section 1.1 of this Agreement, on the Premises (the "Project").
H. On February 10, 2016, Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a part
of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives,
the Ordinance and other applicable laws, ordinances,rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement has been furnished in
the manner prescribed by the Code to the presiding officers of the governing bodies of each of the
taxing units in which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
An interior and exterior remodel of (i) an existing commercial building of
approximately 10,000 square feet in total; and (ii) having a construction cost upon completion
of$641,884.00 including site development costs but such minimum construction costs shall be
reduced by any construction cost saving (collectively, the "Required Improvements"). The
type, number and location of the Required Improvements are described in Exhibit"3". Tarrant
Appraisal District must appraise the property (improvements and land) at a minimum, within
10% of $641,884.00. Owner shall provide a copy of the final construction invoices to City
once the construction is complete; the construction invoices shall be a part of this Agreement
and shall be labeled Exhibit"4". Minor variations, and more substantial variations if approved
in writing by both of the parties to this Agreement, in the Required Improvements from the
description provided in the Application for Tax Abatement shall not constitute an Event of
Default, as defined in Section 4.1, provided that the conditions in the first sentence of this
Section 1.1 are met and the Required Improvements are used for the purposes and in the
manner described in Exhibit"Y'.
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
1.2. Construction Costs.
"Construction Costs" shall mean site development costs (including demolition and
environmental abatement), hard construction costs; contractor fees; engineering fees;
architectural fees; design and consulting fees; and development fee and permitting fees
expended by Owner directly in connection with construction of the Required Improvements.
The City recognizes that Owner will request bids and proposals from various contractors in
order to obtain the lowest reasonable price for the cost of the Required Improvements. In
the event that bids and proposals for the Required Improvements are below $641,884.00 in
Construction Costs for work substantially the same as that provided in Exhibit "3" and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its failure to
expend at least $641,884.00 in Construction Costs, with the understanding that the City's
staff will recommend, but cannot guarantee, approval of such amendment by the City
Council. The final site plan shall be in substantially the same form as the site plan submitted
and attached as Exhibit "3". Minor variations, and more substantial variations if approved
in writing by both parties to this Agreement, in the Required Improvements from the
description provided in the Application for Tax Abatement shall not constitute an Event of
Default, as defined in Section 4.1, provided that the conditions in the first sentence of this
Section 1.1 are met and the Required Improvements are used for the purposes and in the
manner described in Exhibit"3".
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required hnprovements by
May 3, 2018, (the "Completion Deadline"). The abatement will automatically terminate two
years after Council approval if the Required Improvements are not complete. The Required
Improvements shall be deemed complete upon the issuance of a final certificate of occupancy
for the Required Improvements by the Planning and Development Department. If the Owner
fails to expend at least Six Hundred Forty One Thousand, Eight Hundred Eighty Four Dollars
($641,884.00) in Construction Costs for the Required Improvements by the Completion
Deadline as provided in Section 1.1 of this agreement; the City shall have the right to
terminate this Agreement by providing written notice to the Owner without further obligation
to the Owner hereafter.
1.4. Use of Premises.
Owner covenants that the Required Improvements shall be redeveloped and the
Premises shall be continuously used for restaurant, retail and office use and in accordance
with the description of the Project set forth in Exhibit "3". In addition, Owner covenants
that throughout the Term, the Required Improvements shall be operated and maintained for
the purposes set forth in this Agreement and in a manner that is consistent with the general
purposes of encouraging development or redevelopment of the Zone.
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
2. ABATEMENT AMOUNTS TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2 ("Abatement"). Abatement of real property taxes only includes City of Fort Worth-
imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Required Improvements over their values as determined
by TAD in March 2016, and this amount is $359,600.00 the year in which this Agreement
was entered into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings, Owner
shall not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements and shall not apply to taxes on the land, nor
shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the Required
Improvements over its value in April 2016, up to a maximum of$962,826.00. In other words,
by way of example only, if the increase in value of the Required Improvements over its value
in April 2016, in a given year is $1,000,000.00, Owner's Abatement for that tax year shall be
capped and calculated as if the appraised value of the Required Improvements for that year
had only been$962,826.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement (the "Term") shall begin on January I of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements ("Beginning Date") and, unless sooner terminated as herein
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
provided, shall end on December 31 immediately preceding the fifth (5th) anniversary of the
Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for five
(5) years after termination("Compliance Auditing Term"), at any time during normal office
hours throughout the Tenn and the year following the Term and following reasonable notice
to Owner, the City shall have and Owner shall provide access to the Premises in order for the
City to inspect the Premises and evaluate the Required Improvements to ensure compliance
with the terms and conditions of this Agreement. Owner shall cooperate fully with the City
during any such inspection and/or evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of Owner that relate to the Project and Abatement terms and conditions
(collectively, the "Records") at any time during the Compliance Auditing Term in order to
determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to Owner. Owner shall make all applicable Records available to the
City on the Premises or at another location in the City following reasonable advance notice
by the City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before March 1 following the end of every year during the Compliance
Auditing Term and if requested by the City, Owner shall provide information and
documentation for the previous year that addresses Owner's compliance with each of the
terms and conditions of this Agreement for that calendar year. This information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
Failure to provide all information within the control of Owner required by this Section 3.3
shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
ruling. The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon Owner's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem
real property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and
Owner does not timely and properly follow the legal procedures for protest and/or contest of
any such ad valorem real property or tangible personal property taxes or (iii) OWNER DOES
NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF
ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
Owner shall have sixty (60) calendar days from the date of receipt of this written notice to
fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will
require additional time to cure the Event of Default, Owner shall promptly notify the City in
writing, in which case (i) after advising the City Council in an open meeting of Owner's
efforts and intent to cure, Owner shall have ninety (90) calendar days from the original date of
receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more
than ninety (90) days to cure the Event of Default, after advising the City Council in an open
meeting of Owner's efforts and intent to cure, such additional time, if any, as may be offered
by the City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damal4es.
If an Event of Default, which is defined in Section 4.1, has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate
this Agreement immediately. Owner acknowledges and agrees that an uncured Event of
Default will (i) harm the City's economic development and redevelopment efforts on the
Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional
administrative oversight and involvement by the City; and (iii) otherwise harm the City, and
Owner agrees that the amounts of actual damages there from are speculative in nature and will
be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any
Event of Default, Owner shall not be eligible for the Abatement for the remaining Term and
Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with
this Agreement for each year when an Event of Default existed and which otherwise would
have been paid to the City in the absence of this Agreement. The City and Owner agree that
this amount is a reasonable approximation of actual damages that the City will incur as a result
of an uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by the
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal
district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing
and paid to the City within sixty (60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within
sixty (60) days following the effective date of termination of this Agreement, Owner shall also
be liable for all penalties and interest on any outstanding amount at the statutory rate for
delinquent taxes, as determined by the Code at the time of the payment of such penalties and
interest. Notwithstanding anything herein to the contrary, damages due under this paragraph
shall be the sole responsibility of 200 Carroll FW Investors, LLC.
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the
Premises or the anticipated Required Improvements are no longer appropriate or feasible, or
that a higher or better use is preferable, the City and Owner may terminate this Agreement in
a written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii) there
shall be no recapture of any taxes previously abated; and (iii) neither parry shall have any
further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Packal4e Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Owner may assign this Agreement and all or any portion of the benefits provided hereunder
to 200 Carroll FW Investors, LLC, or an Affiliate without the consent of the City, provided that (i)
prior to or contemporaneously with the effectiveness of such assignment, Owner provides the City
with written notice of such assignment, which notice shall include the name of the Affiliate and a
contact name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all
terms and conditions of Owner under this Agreement. For purposes of this Agreement, an
"Affiliate" means all entities, incorporated or otherwise, under common control with Owner,
controlled by Owner or controlling Owner. For purposes of this definition, "control" means fifty
percent (50%) or more of the ownership determined by either value or vote. Owner may not
otherwise assign this Agreement or any of the benefits provided hereunder to another party without
the consent of the City Council, which consent shall not unreasonably be withheld or delayed,
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 assignee agrees in writing to
assume all terms and conditions of Owner under this Agreement. Any attempted assignment
without the City Council's prior written 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.
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City: Owner:
City of Fort Worth Susan S. Gruppi
Attn: City Manager Managing Member
1000 Throckmorton 200 Carroll FW Investors, LLC
Fort Worth, TX 76102 200 Carroll Street
Fort Worth, Texas 76107
and
Neighborhood Services Department
Attn: Director
1000 Throckmorton
Fort Worth, TX 76102
7. MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit"3", the body of
this Agreement shall control. As of April 19, 2016, the City is unaware of any conflicts
between this Agreement and the City's zoning ordinance or other ordinances or regulations.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-27687 on April 19, 2016, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so
long as the certificate is requested in connection with a bona fide business purpose. The
certificate, which if requested will be addressed to the Owner, shall include, but not
necessarily be limited to, statements that this Agreement is in full force and effect without
default (or if an Event of Default exists, the nature of the Event of Default and curative
action taken and/or necessary to effect a cure), the remaining term of this Agreement, the
levels and remaining term of the Abatement in effect, and such other matters reasonably
requested by the party or parties to receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions, or City Council actions authorizing this Agreement and Owner shall be entitled
to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas
and applicable ordinances, rules, regulations, or policies of the City. Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
the City and Owner, their assigns and successors in interest, as to the matters contained
herein. Any prior or contemporaneous oral or written agreement is hereby declared null and
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
void to the extent in conflict with any provision of this Agreement. This Agreement shall
not be amended unless executed in writing by both parties and approved by the City
Council. This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
(REMAINDER OF PAGE INTENTIONALLY BLANK)
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
200 Carroll FW Investors, LLC
a Texas limited liability company
By: WS Vacek Investment LP,
A Texas limited partnership, its sole
member
By: M2G Vacek Investment LLC
A Texas limited liability company,
City of Fort Worth Its General rtner
J `
By: By:
Fernando Costa Susan S. Gruppi
Assistant City Manager Managing Member
ATTEST- �
1=t
By:LA'U'�Srll-
-o
City Secretary 'a
APPROVED AS TO FORM AND LEGALITY:`'
Melinda Ramos
Sr. Assistant City Attorney
M& C: C-27687
OFFICIAL RECO
CITY SECRETARY
FT.WORTIH�711,S
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
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 26� day of
2016.
Notary Public i and fo `�O,PP (/e(,,, TRIKINYA L JOHNSO o
V P ��i
the State Of Texas :Notary Public, State of Texas
Comm. Expires 04-17-2019
Notary ID 1238832 0
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Susan S. Gruppi,
Managing Member of M2G Vacek Investment,LLC, General Partner for WS Vacek Investment LP,
sole member of 200 Carroll FW Investors, LLC, 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 and as the act and deed
of 200 Carroll FW Investors, LLC.
GI EN UNDER MY HAND AND SEAL OF OFFICE this a�ay of
20
SARAH J. ODLE
Notary Public in f r ;:; o:Notary Public.State of Texas
P; Comm. Explres 1 1-05-2019
The State of Texa Z
�,,,,���,,,. Notary ID 6215320
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NEZ Tax Abatement with 200 Carroll FW Investors,LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
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NEZ Tax Abatement with 200 Carroll FW Investors, LLC, 200 Carroll Street
Approved by M&C C-27786, May 3, 2016
Exhibit 1
Property Legal Description
200 Carroll Street, Lots 8-10, Block 7, Weisenberger Addition, an Addition to the City of
Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 388A, Page
120,Plat Records, Tarrant County, Texas.
Exhibit
FORT WORTH �� - DbQ�
Application No. L
'CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
I. APPLICATION CHECK LIST - Please submit the following documentation:
A completed application form
A list of all properties owned by the applicant,owner,developer,associates,principals,partners,and agents
in the Cltv Fort Worth
Non Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00.For multifamily,commercial,industrial, community facilities,and mixed-use tax
abatement applications:0.5%of the total Capital Investment of the project,with a$200.00 minimum and
not to exceed$2,000.00;For residential tax abatement applications: $100.00 per house.
Proof of ownership,such as a warranty deed, affidavit of heirship, or a probated will OR evidence of site
control,such as option to buy(A registered warranty deed is required for tax abatement application.)
❑ Title abstract of the property(only if applying for release of City liens)
A reduced 11x17 floor plan,site plan,and site elevation with a written detailed project description that
includes a construction time line
A detailed line item budget showing the cost breakdown for the project
Copy of Incorporation Papers noting all principals,partners,and agents if applicable
❑ Required-Meet with the Councilmember and Neighborhood&other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised February 5, 2014 or
followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS OF THE DATE OF
APPLICATION.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED,OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED, OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NEZ INCENTIVES.
II. APPLICANT/AGENT INFORMATION
I,1'G
1. Applicant: U0 (A"-0w FV '�WfS C 2 Contact Person:
3. Address: 2-00 CA"t -t'
Street City State Zip 1
4. Phone no.: 21-1. Oj( Z�, nit S� f 5. Fax No.: r----
6. Email: go nwol N"1 DV4
7. Agent(if any) QIYPA A I WAV)
S. Address: V'0 o VW
Street City State Zip
9. Phone no.: 10. Fax No.:
11. Email: (J�1Md11 1 Vi �yo'-2 t y' GDyy�
Revised July 23,2014 1
FORTWQRTH Application No. JV21 J abs 3
PROJECT ELIGIBILITY
1. Please list the addresses and legal descriptions of the project and other properties your organization
owns in Fort Worth. Attach metes and bounds description if no address or legal description is
available, Attach a map showing the location of the project.
Table 1 Property Ownershi
Address Zip Code Lt-yr escrintion
Project Location Subdivision Name Lot No. Block No.
o 101 was - o -�
101�1 I w 6v, l1- �b
2- u s [a - (M 12
Other properties own d in the City of Fort Worth -con ' ue on a separate sheet and attach if necessary.
2. For each property listed in Table 1,please check the boxes below to indicate if:
• there are taxes past due; or
• there are City liens; or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
Table 2 Property Taxes and CityLiens
Property City Liens on Property
Address Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
❑ ❑ ❑ ❑ ❑ El
❑ 110 El ❑
❑ ❑ ❑
El El F1
❑ ❑ El 1:1
❑ ❑
(Please attach additional sheets of paper as needed.)
If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible
for NEZ incentives
Revised July 23,2014 2
FORT WORTH Application No,
3. Do you own other properties under other names? Yes EJNo +,,,, t�v
If Yes,please specify`1 4 �/V *la/pd6li/W�- 0� (AAA ( AS �
4. Does the proposed project co form with City of Fort Worth Zoning? XYes ❑No
If no,what steps are being taken to insure compliance?
I -
5. Project ❑ ❑ ( ❑ ❑
Type: Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
❑ Owner Occupied
Rental Property
i
6. Please describe the proposed residential or commercial eyA60 OV aV10 VA e)V,
tl✓� C� roject: S
7. If your project is a commercial,industria ,or mixed-use project,please describe the types of
businesses that are being proposed: �[e� , 8Vl C u I
8. Is this a new construction or rehab project? ❑New Construction ,Rehab
9. How much is the total development cost of your project?
10. Will the eligible rehabilitation work* be equal to at least 30% of the Tarrant Appraisal District '
(TAD)assessed value of the structure during the year rehabilitation occurs? KYes ❑No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material construction;personal property such as furniture,
appliances, equipment,and/or supplies. Total eligible rehabilitation costs shall equal to or exceed 30%of the
TAD appraised value of the structure during the year rehabilitation occurs.
11. How much is the total square footage of your project? I Oilsquare feet
I
* If applying for a tax abatement please answer questions 12—16. If not skip to part III Incentives j
12.For a single-family homeownership, mixed-use, or multi-family develo2ment project, please fill out j
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Range of Owners or Renters
Number of Units Percentage
Income Range E
>80%of AMFI**
At or below 80%of AMFI
17 Total Units
**AMFI:Area Median Family Income. Please see attachment for income and housing payment guidelines.
13. For a multifamily proiect to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80% of AMF11. Check the box if you are requesting a waiver of this
requirement. ❑
14. For a commercial, industrial or community facilities proiect, indicate square footage of non-
residential space,
Commercial Industrial Community Facilities
— 6 square feet square feet square feet
I
E
Revised July 23,2014 3 i
FORT WORTH Application No. -Z_[ o b
15. How much will be your Capital Investment*** on the project? Please use the following table to provide
the details and amount of your Capital Investment (Attached additional sheets if necessary).
Table 4 Itemized Bud et of the Pro ect rw'-e
Items Amount Notes
Total
***Capital Investment includes only real property improvements such as new facilities and structures,site improvements, facility
expansion, and facility modernization. Capital Investment DOES NOT include land acquisition costs and/or any existing
improvements,or personal property(such as machinery,equipment,and/or supplies or inventory).
16. For a commercial, industrial, community facility or mixed-use project, how many employees will the
project generate?
17. Fora mixed-useeroiiect,please indicate the percentage of all uses in the project in the following table.
Table S Percentage of Uses in a Mixed-Use Project
Type Square Footage Percentage
Residential
Office
-Eating
Entertainment
Retail sales
Service
Total
III. INCENTIVES - What incentives are you applying for?
Municipal Properly Tax Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
A5 years ❑More than 5 years
❑Residential owner occupied ❑Residential Rental Property ❑Apartments(5 plus units) illcommercial
Development Fee Waivers
M All building permit related fees (including Plans Review and Inspections)
❑ Plat application fee(including concept plan,preliminary plat, final plat, short form replat)
❑ Zoning application fee ❑ Board of Adjustment application fee
0 Demolition fee ❑ Structure moving fee
❑ Community Facilities Agreement(CFA)application fee
❑ Street and utility easement vacation application fee
Impact Fee Waivers -The maximum water/wastewater impact fee waiver amount for a commercial, industrial, mixed-
use, or community facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters
❑ Water (Meter Size �� (No, of meters ❑Transportation
Release of City Liens
❑ Weed liens ❑Paving liens ❑Board up/open structure liens ❑Demolition liens
Revised July 23,2014 4
FORTWORTK Application No. Z --0bb3L.p
III. ACKNOWLEDGMENTS
I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby
acknowledge that I have received a copy of NEZ Basic Incentives,which governs the granting of tax abatements, fee
waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible in obtaining required permits and inspections from the City and in
ensuring the project is located in the correct zoning district.
I understand that my application will not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requeste the Ci
Sins AVI l
(PRINTED OR TYPED NAME) (AUTHORIZED GNATURE) (DATE)
Please mail or fax your application to:
City of Fort Worth Planning and Development Department
1000 Throckmorton Street,Fort Worth,Texas 76102
Tel: (817)392-2222 Fax: (817)392-8116
Electronic version of this form is available on our website. For more information on the NEZ Program,please visit
our web site at www.fortworthgov.org/planninganddevelopment
For OfficeU e Only
Application No. which NEZ? (�t'. Y Council District
Application Completed Date(Received Date): (.� Conform with Zoning? Yves ❑No
Type? ❑ SF E]Multifamily (a'Commereial E]Industrial ❑Community facilities E]Mixed-Use
Construction completion date? ❑Before NEZ 'After NEZ Ownership/Site Control [ Yes ElNo
TAD Account No. D33'I _� 6 q Consistent with the NEZ plan? EgIfes E]No
Meet affordability test? Dyes [:]No Minimum Capital Investment? E;Yes LlNo
Rehab at or higher than 30%? ED Ves [INo Meet mixed-use definition? ElYes [:]No
Tax current on this property? ❑''('es ❑No Tax current on other properties? EJ E]No
City liens on this property? City liens on other properties?
• Weed liens F1Yes MNo • Weed liens ElYes No
• Board-up/open structure liens ❑YesNo • Board-up/open structure liens F-1Yes No
• Demolition liens ❑ Yes No • Demolition liens El Yes No
• Paving liens
El No • Paving liens El No
• Order of demolition F1 Yes No • Order of demolition ❑Yes No
Certified? ('Yes ❑No Certified by t)f�Aa_VAc, Date certification issued? {p
If not certified,reason
Referred to: ❑Economic Development ❑Housing ❑Development ❑Water ❑Code ❑TPW
Revised duly 23,2014 5
Exhibit 3
Project Description
Renovation of an approximately 10,000 square foot commercial building. Renovation to
include the following:
• Exterior Remodel
• HVAC for non-HVAC Spaces & Upgrades
• Parking Lot Upgrade
• New Roof
• Executive Office Suite Interior Remodel
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
M&C Review Page 1 of 2
Official site of the City of Fort Worth,Texas
FORTWORT11
COUNCIL ACTION: Approved on 5/3/2016
DATE: 5/3/2016 REFERENCE NO.: C-27706 LOG NAME: 19NS NEZ200CARROLL
CODE: C TYPE: NOW PUBLIC CONSENT HEARING:
NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with 200 Carroll FW
Investors, LLC, to Redevelop an Existing Commercial Building for Retail, Office and
Restaurant Use Located at 200 Carroll Street in the Trinity Park Neighborhood
Empowerment Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement with 200 Carroll FW Investors, LLC, to redevelop an existing commercial building for
retail, office and restaurant use located at 200 Carroll Street in the Trinity Park Neighborhood
Empowerment Zone.
DISCUSSION:
200 Carroll FW Investors, LLC (Property Owner) is the owner of the property described as Lots 8-10,
Block 7, Weisenberger Addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the Plat recorded in Volume 388A, Page 120, Plat Records, Tarrant County Texas, 200
Carroll Street Fort Worth, Texas. The property is located within the Trinity Park Neighborhood
Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$641,884.00 to redevelop an existing
commercial building for retail, office and restaurant use (Project). The Neighborhood Services
Department reviewed the application and certified that the Project met the eligibility criteria to receive
a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and Basic Incentives includes
a five-year municipal property tax abatement on the increased value of improvements to the qualified
owner of any new construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2017 at the estimated
pre-improvement value, as defined by the Tarrant Appraisal District (TAD) in April 2016, for the
property as follows:
Pre-Improvement TAD Value of Improvements $359,600.00
Pre-Improvement Estimated Value of Land �$ 170,400.00
Total Pre-improvement Estimated Value $530,000.00
The Municipal Property Tax Abatement on the improved value of the Project after construction is
estimated in the amount of$5,488.00 per year for a total in the amount of$27,441.00 over the five-year
period. However, this estimate may differ from the actual tax abatement value, which will be calculated
based on the Tarrant Appraisal District appraised value of the property.
The Tax Abatement Agreement may be assigned to an affiliate of the Property Owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner meets
all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
http://apps.efwnet.org/council_packet/mc_review.asp?ID=22251&councildate=5/3/2016 05/17/2016
CERTIFICATE OF INTERESTED PARTIES C.,
FORM 1,295
1of1
Complete Nos.1-4 and 6 if.there are Interested parties. OFFICE USE ONLY
Complete lues-1,2,3,5,And 6 it there are no interested parties. CERTIFICATION OF FILING
i Name of business entity filing form,and the clty,state and country❑f the business enfny's place Certificate Number:
of business. 2016-36764
200 Carroll FW Investors LLC
Fort Worth,TX United States nate Filed.
2 Name of governmental entity or state agency that s a party to the contract for which the form is 0411212016
being filed.
City of Fort Worth bate Acc n ledge ;
s Provide the Identification number used by the governmental entity or state agency to track or identify the ct,and pr❑vide a
description or the goods or oetvices to be provided under the contract, on
N/A
Renovation Agreement
a
Name of interested Party C ty,State,Country Nature of interest(check applicable)
_ ry(place qt business) app )
Controlling Intermediary
City of For[Watth Fort.Worth,TX United States
• X
I
7171
5 Check only if there is NO interested Party.
6 AFFiDAV1T
M• " - i swear,or aff under p
CttYSTgt SgCLiVAfJ ty enury,that the above disclosure is true and correct,
My
011m Mission Expires
+�O:,v` July 23,.2017
AFFIX NOTARYSTAMP/SEAL ABOVE signature of authorJzed gent of contracting business entity
sworn f o�and subscribed before me,by the Said
20 'to Genify which,witness
MY hand and seal ofo(f'jce,
this the,
day o �
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ignature of offtoer administering oath
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Arovided$ name ofotdceradm
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Version V,t,0.645