HomeMy WebLinkAboutContract 33167 CITY SECRETARI( :
CONTRACT NO.
STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
5400 Fernander Drive
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 Dale A.
Fisseler, its duly authorized Assistant City Manager, and Arturo and Rocio Perez ("Owner"),
owner of property located at 5400 Fernander Drive, Block 11, Lots 11 & 12, Harlem Heights
Addition, in the City of Fort Worth, Tarrant County, Texas, and as shown on the Plat recorded in
Volume 005958, Page 0919,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 (NEZ) 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 NEZ, may enter into agreements abating municipal property taxes on
property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, stating that the City elects to be eligible to participate in
tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled "NEZ
Basic Incentives" ("NEZ Incentives"), these are readopted on October 4, 2005.
The October 4, 2005 NEZ Incentives are attached hereto as Exhibit"A" and hereby
made a part of this Agreement for all purposes.
, 'v L
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 April 2, 2002, the City Council adopted Ordinance No. 15061 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No.
Two,"City of Fort Worth,Texas (the "Zone").
F. Owner owns certain real property located entirely within the Ridglea/Como NEZ
and that is more particularly described in Exhibit `B", attached hereto and hereby
made a part of this Agreement for all purposes(the "Premises").
G. Owner or its assigns plan to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used as a single-family
residence that will be Owner occupied(the"Project").
H. On March 4, 2005, Owner submitted an application for NEZ incentives and for tax
abatement to the City concerning the contemplated use of the Premises (the
"Application"), attached hereto as Exhibit "C" and hereby made a part of this
Agreement for all purposes.
I. The City Council finds that 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, along with a copy
of 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.
Owner shall construct, or cause to be constructed, on and within the Premises
certain improvements consisting of a single-family residence (collectively, the
"Required Improvements"), (i) of at least 1850 square feet in size and built to the
specifications listed in Exhibit"D"and(ii) having an appraised value of at least$115,000
as determined by an independent appraiser (collectively the "Required Improvements").
Owner shall provide a survey of the completed home once.completed. The parties agree
that the final survey shall be a part of this Agreement and shall be labeled Exhibit E.
Minor variations and more substantial variations if approved in writing by both parties to
this Agreement before construction is undertaken, 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"D".
1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two
years from the issuance and receipt of the building permit, unless delayed because of force
majeure, in which case the two years shall be extended by the number of days comprising
the specific force majeure. For purposes of this Agreement, force majeure shall mean an
event beyond Owner's reasonable control, including, without limitation, delays caused by
adverse weather, delays in receipt of any required permits or approvals from any
governmental authority, or acts of God, fires determined by the City of Fort Worth in its
sole discretion, which shall not be unreasonably withheld, but shall not include construction
delays caused due to purely financial matters, such as, without limitation, delays in the
obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Premises and the Required Improvements shall be used
as the Owner's primary residence and in accordance with the NEZ Incentives. In
addition, Owner covenants that throughout the Term, the Required Improvements shall
be maintained for the purposes set forth in this Agreement.
2. ABATEMENT AMOUNTS,TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a 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 Premises, the Required Improvements, over their values
on January 1, 2006, the year in which both parties executed this Agreement. The
Abatement shall be 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, 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
2.3. Terms of Abatements.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which the Required Improvement is completed and, unless
sooner terminated as herein provided, shall end on December 31 immediately preceding
the fifth(5a')anniversary of the Beginning Date.
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. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of
$25.00.
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, at any
time during normal office hours throughout the Term 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. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable
term of this agreement. The City shall have the right to audit at the City's expense the
Required Improvement with respects to the specifications listed in Exhibit D. Owner must
provide documentation that Owner is using the Required Improvements as its primary
residence (collectively, the "Records") at any time during the Compliance Auditing Term
in order to determine compliance with this Agreement. 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 February 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.
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
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 USE THE PREMISES AS PRIMARY RESIDENCE
ONCE THE ABATEMENT BEGINS (iv) 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 ninety (90) calendar days from the date of receipt of this
written notice to fully cure or have cured the Event of Default. If Owner reasonably
a
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 one hundred eighty
(180) calendar days from the original date of receipt of the written notice, or(ii) if Owner
reasonably believes that Owner will require more than one hundred eighty (180) 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 Damalzes.
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 therefrom
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 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 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(currently, Section 33.01 of the Code).
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
party shall have any further rights or obligations hereunder.
f:.
4.5 Sexually oriented business & Liquor Stores or Package 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.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the
Required Improvements as its primary residence or the homeowner's mortgagee which City
Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner, however if
Owner sells the Premises and Required Improvements,this Abatement cannot be assigned to a new
owner of all or any portion of the Premises and/or Required Improvements without the prior
consent of the City Council, which consent shall not be unreasonably withheld 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 purchaser agrees in writing to assume all terms
and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey
any of its rights under this Agreement. Any attempted assignment without the City Council's prior
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.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, Owner shall have no
further obligations or duties under this agreement. In addition, upon assignment to any other
entity with the written consent of City Council, Owner shall have no further duty or
obligation under this agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE
EVENT OF A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF
THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF
THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER
OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE
AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND
EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR
BY HAND DELIVERY.
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 Arturo and Rocio Perez
Attn: Housing Department 5400 Fernander Dr.
1000 Throckmorton Fort Worth,Texas 76107
Fort Worth,TX 76102
And
Housing Department
Director
1000 Throckmorton
Fort Worth,Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to the 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 Plan 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"C", the body
of this Agreement shall control.
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.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor
and Council Communication No. C-20676 on April 26, 2005, 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 Recordation.
A certified copy of this Agreement in recordable form shall be recorded in the Deed
Records of Tarrant County,Texas.
7.10. 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.
7.11 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.
7.12. 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 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.
EXECUTED this of 20� b of Fort Worth
Y Y the City
Texas.
EXECUTED this. day of ,2005,by Arturo Perez.
EXECUTED this `,15y of , j 2005,by Rocio Perez.
CITY OF FORT WORTH: OWNER:
p
By: By: 12 kQ
Dale isseler Vt Arturo Perez
Assistant City Manager Owner
ATTEST: By: ctd ke��o7-
Rocio
Perez
Owner
y:_ 14,A,)
City Sicretary
APPROVED O F AND LEGALITY:
By:
Cynthia Garcia
Assistant City Attorney
M & C: C-20676
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler,
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 st
day of
2A.
• R .
No Public in and or
JONI R JACOB
the Stade of Tel fZ f : NOTARY PUBLIC
_l 11 {*Nth* State of Texas
05-27-2007
Comm. Exp.
Notary's Printed Name `"
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Arturo Perez, 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
20 5.
Notary Public in an f
the State of Tex
SARAH J.ODLE
MY COMMISSION EXPIRES
Notary's Printe '
November 5,2007
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Rocio Perez, 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.
_fjNEN ER MY HAND AND SEAL OF OFFICE this 1rda of
200
Notary Public in and f
the State of Texas
SARAH J.ODL�
MY EXPIRES
November
Notary's Printed Name �;; N
�� 5,2007
Exhibit A: NEZ Incentives
Exhibit B: Property Description
Exhibit C: Application: (NEZ) Incentives and Tax Abatement
Exhibit D: Project description including kind, number and location of the proposed
improvements.
Exhibit E: Final Survey
Exhibit A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a "...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."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall cavy its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement" means the full or partial exemption from City of Fort Worth ad valorem taxes on
eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in
appraised value (as reflected on the certified tax roll of the appropriate county appraisal district)
resulting from improvements begun after the execution of the tax abatement agreement.
Eligible properties must be located in the NEZ.
"Base Value"is the value of the property, excluding land, as determined by the Tarrant County
Appraisal District, during the year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec. 7-77, Article IV.
Minimum Building Standards Code of the Fort Worth City Code.
'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 and inventory).
A drintPr'! OntflhP.r 4 mni 1 3
"City of Fort Worth Tax Abatement Policy Statement"means the policy adopted by City Council
on February 29, 2000.
"Commerciabindustrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project'is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
`Eligible Rehabilitation" includes only physical improvements to real property. Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
"Minimum Building Standards Code"is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)"and "Women Business Enterprise (WBE)"is a minority or
woman owned business that has received certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project' is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate multi-family residential living units on property that is (or meets the requirements to
be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance.
"Project" means a "Residential Project; "Commerciab1ndustrial Development
Project""Community Facility Development Project, "Mixed-Use Development Project" or a
"Multi-family Development Project."
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
Adopted October 4,2005 2
III. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5
YEARS
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
d. Property is not in a tax-delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property;
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the City of Fort Worth Zoning Ordinance.
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 years.
If an applicant applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
A rinnted Ortnher 4. 2005 3
Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitated mufti-family development project in a NEZ must satisfy
the following:
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
(a) For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of$200,000; or
(b) For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of$200,000.
2. 1%-100%Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements for multi-family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years 1 through 5 of the Tax Abatement Agreement
Multi-family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
Adopted October 4, 2005 4
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
a. For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of$200,000; or
b. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of$200,000.
Years 6 through 10 of the Tax Abatement Agreement
Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem
taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
1. For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of$200,000; or
2. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of$200,000.
b. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
8. management plans.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
Adopted October 4,2005 5
1. 100%Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing Department for such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or$75,000, whichever is greater.
2. 1%-100%Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Economic and Community Development Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years 1 through 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or$75,000, whichever is greater.
F , Lr Si '
Adopted October 4,2005 6i`' ,
Years 6 through 10 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1%-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital
Investment of$75,000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the
Base Value of the property, or $75,000, whichever is greater and meet
the requirements of subsection (c) below.
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100%Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
Abatements for Mixed-Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project in a NEZ must satisfy the
following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of$200,000; or
Adopted October 4, 2005 7
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the Base
Value of the property, or$200,000, whichever is greater.
2. 1%-100%Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing
Department for such abatement.
The applicant must apply for the tax abatement before construction or rehabilitation
is started and the application for the tax abatement must be approved by City
Council.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater.
Years 6 through 10 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 1-100% abatement of City ad
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of$200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
Adopted October 4, 2005 8
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater, and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for
an agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7. tenant selection plans; and
B. management plans.
E. ABATEMENT GUIDELINES
1. If a NEZ is located in a Tax Increment Financing District, City Council will determine
on a case-by-case basis if the tax abatement incentives in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section III.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth
3. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets NEZ tax abatement criteria; and
2. the applicant is not responsible for the tax delinquency for the Property;
and
3. the applicant enters into an agreement to pay off the taxes under the
guidelines permitted under state law; and
4. the tax abatement shall provide that the agreement shall take effect
after the delinquent taxes are paid in full
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for tax abatements.
Adopted October 4,2005 9
5. Once a NEZ property owner of a residential property (including multi-family) in the
NEZ satisfies the criteria set forth in Sections IIIA, E.1. and E.2. and applies for an
abatement, a property owner may enter into a tax abatement agreement with the City
of Fort Worth. The tax abatement agreement shall automatically terminate if the
property subject to the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation.
6. A tax abatement granted under the criteria set forth in Section III. can only be
granted once for a property in a NEZ for a maximum term of as specked in the
agreement. If a property on which tax is being abated is sold, the City will assign the
tax abatement agreement for the remaining term once the new owner submits an
application.
7. A property owner/developer of a multifamily development, commercial, industrial,
community facilities and mixed-use development project in the NEZ who desires a
tax abatement under Sections III.B, C or D must:
a. Satisfy the criteria set forth in Sections 111.6, C or D, as applicable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Housing Department, as applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
8. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
9. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
10. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
Adopted October 4, 2005 10
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required certification by the above deadline shall
result in cancellation of agreement and any taxes abated in the prior year being due
and payable.
11. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term. Any
sale, assignment or lease of the property which is not permitted in the tax abatement
agreement results in cancellation of the agreement and recapture of any taxes
abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
1. An application fee of$25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements govemed under Section III.A is
$100.
3. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects govemed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, with a $200
minimum not to exceed $2,000 . The application fee will be refunded upon issuance
of certificate of final occupancy and once the property owner enters into a tax
abatement agreement with the City. Otherwise, the Application Fee shall not be
credited or refunded to any party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers.
4. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
a. must submit an application to the City; -
Adovted October 4.2005 11 -- -- -- a
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
c. must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Proiect. Before construction, the applicant must
ensure that the proiect is located in the correct zoning district.
B. DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed by the City of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Base Value of the property on Eligible Rehabilitation costs:
1. All building permit related fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee
9. Ordinance Inspection Fees
10. Consent/Encroachment Agreement Application Fees
Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100%waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
Adopted October 4,2005 12
required. Applicant may request the additional amount of impact fee waiver
through the Housing Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered 'eligible" to apply for release of city liens under this Policy,the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth—however, once the NEZ Plan is submitted for the Woodhaven
NEZ, this will no longer be required.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
4. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E. for a Project, the property
owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer,
b. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
c. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer. °Liens" includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens; and
d. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to apply for release of City liens.
5. In order for a Rehabilitation Project to qualify for a release of city liens, the
owner/developer must spend Eligible Rehabilitation costs on the Property of at lease
30% of the Base Value of the Property.
6. Liens shall be released once the Project Improvements have been made to the
property.
7. Any liens filed after the initial certification of the property shall not be released.
B. WEED LIENS
The following are eligible to apply for release of weed liens:
1. Single unit owners performing rehabilitation on their properties. �li , y�,4 7
Adopted October 4,2005 13 -
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing new multi-family, commercial, industrial, mixed-use or
community facility development projects.
C. DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of$30,000 are subject to City Council approval.
D. BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
E. PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
VI. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Housing Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement' and pay the appropriate
application fee to the Economic Development Office. The application fee, review,
evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifying Development Projects.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS Ill. IV, AND V
1. The Housing Department will review the application for accuracy and
Adonted October 4,2005 14
completeness. Once the Housing Department determines that the application is
complete, the Housing Department will certify the property owner/developer's
eligibility to receive tax abatements and/or basic incentives based on the criteria set
forth in Section III., IV., and V. of this policy, as applicable. Once an applicant's
eligibility is certified, the Housing Department will inform appropriate departments
administering the incentives. An orientation meeting with City departments and the
applicant may be scheduled. The departments include:
a. Housing Department: property tax abatement for residential properties and multi-
family development projects, release of City liens.
b. Economic Development Office: property tax abatement for commercial,
industrial, community facilities or mixed-use development projects.
c. Development Department: development fee waivers.
d. Water Department: impact fee waivers.
e. Other appropriate departments, if applicable.
2. Once Development Department, Water Department, Economic Development Office,
and/or other appropriate department receive a certified application from the Housing
Department, each departmentloffice shall fill out a 'Verification of NEZ Incentives for
Certified NEZ Incentives Application' and return it to the Housing Department for
record keeping and tracking:
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing Department will evaluate a completed and certified application
based on:
(a)The_project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee.
Based upon the outcome of the evaluation, Housing Department may present
the application to the City Council's Economic Development Committee.
Should the Housing Department present the application to the Economic
Development Committee, the Committee will consider the application at an
open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
• -1 -3 !1_a_1L__ A 'IAAC 4r,
(b) Request modifications to the application. Housing Department staff will
discuss the suggested modifications with the applicant and then, if the
requested modifications are made, resubmit the modified application to
the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Economic Development Office will evaluate a completed and certified
application based on:
(a) The project's increase in the value of the tax bash.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (M/WBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee
Based upon the outcome of the evaluation, the Economic Development
Office may present the application to the City Council's Economic
Development Committee. Should the Economic Development Office present
the application to the Economic Development Committee, the Committee will
consider the application at an open meeting. The Committee may:
n
A--+-,I nnfe%kPr a '?W; 16
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to the application. Economic Development Office
staff will discuss the suggested modifications with the applicant and then,
if the requested modifications are made, resubmit the modified application
to the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3. Development Fee Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Development Department will review the certified applicant's
application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicant's application and make
appropriate recommendations to the City Council.
4. Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives.
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
5. Release of City Liens
For certified applications of release of City liens, the Housing Department will release
the appropriate liens.
VII. REFUND POLICY
In order for an owner/developer of a Project in a NEZ to receive a refund of development
fees or impact fees, the conditions set forth in the Refund of Development and Impact
Fee Policy, attached as Attachment"A", must be satisfied.
VIII. OTHER INCENTIVES
A. Plan reviews of proposed development projects in the NEZ will be expedited by the
Development Department.
B. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
1. Municipal sales tax refund
2. Homebuyers assistance
3. Gap financing
4. Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TIF)
10. Public Improvement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
IX. Public Notification
a. Subject to subsection (b), in order for an owner/developer to apply to receive any
incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives,
an owner/developer must meet with the following persons and organizations to
discuss the Project:
1. the Council Member for the District the Project is located; and
2. the neighborhood associations or community based organizations registered
with the city in the NEZ the Project is located.
b. Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City Council Member for the District the
Project is located and the neighborhood associations or community based
organizations registered with the city in the NEZ the Project is located; or
2. meeting with the City Council Member for the District the Project is located and
upon the owner/developer providing proof that the owner/developer attempted to
meet with the neighborhood associations and the community based
organizations registered with the city in the NEZ the Project is located and the
associations or organizations failed to arrange a meeting p
owner/developer within two weeks of initial contact. I i
c. The Public Notification Process listed in (a) and (b) above shall only apply to NEZs in
which the City Council has not approved a NEZ Strategic Plan. Once the a NEZ
Strategic Plan has been approved for the particular NEZ, no public notification shall be
required for NEZ Incentives so long as the Project meets the criteria outlined in the
relevant NEZ Strategic Plan.
X. Ineligible Projects
The following Projects or Businesses shall not be eligible for any incentives under the City' of
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
Atinnted Ortnher 4 ?005 19
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
Unless expressly excepted, this policy applies to all development and impact fees
waived by the City through the NEZ. -----
Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees foruag lified projects located in a
designated NEZ. The impact fees include only water and sewer impact fees, up to
$55,000 for commercial, industrial, mixed-use or community facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short foram
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letter from
the Housing Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent them from obtaining the qualification letter from the Housing Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ; or -- -- 4
Adopted October 4, 2005 20 __. -- --•- ----
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normally waived
through the NEZ must be filed within ninety days following the date that the fees were
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Housing Department for determination of the
eligibility for NEZ fee waivers, and
• submit a written request to the Department in which the fees were paid. Upon
receiving a confirmation from the Housing Department that the project meets all NEZ
fee waiver criteria, that Department shall process the request based on the
qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
c. City liens such as mowing, board-up, trash, demolition and paving liens.
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the
fees; or
b. The applicant does not meet the requirements for NEZ incentives at the time
he/she paid the fees; or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
Adopted October 4-2005 21
policy and other policies or regulations adopted by the City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
Adopted October 4,2005 22
Exhibit "B"
Property Description
5400 Fernander Drive
Block 11, Lots 11 & 12, Harlem Heights Addition, Second Filing,to the City of Fort
Worth, Tarrant County, Texas according to plat recorded in Volume 005958,Page 0919,
Deed Records, Tarrant County, Texas.
Exhibit C
FoRTFORTH
Application No. _
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM.
.PROJECT CERTIFICATION APPLICATION- FORM"A"FOR HOMEOWNERS
1. APPLICATION CHECK LIST
Please submit the followin-documentation:
i _ A completed application form
A list of all properties owned by the applicant,owner,developer,associates,principals, partners,and
Agents in Fort Worth
Application fee-cashier's check or money order payable to the City of Fort Worth(For tax abatement
applications only.For multifamily,commcrcial,industrial,commercial facilities,and mixed-use tax
abatement applications:0.5%of the total Capital Investment of the-project,not to exgeed$1,000.00;For
single family tat abatement applications: $25 per house) /J,a
LJ Proof of ownership,such as a warranty deed,affidavit of heirship,a a pr ated will OR e0idencelof site
control,such as option to buy(A registered warranty deed is required for tax abatement application.)
Title abstract of the propery(only if applying ror release of City Gens)
A completed set of development plans,project description and development budget or contractor's quote
Copy of Incorporation Papers noting all principals,partners,and agents
C�u
�( Met with the Council member and Neighborhood -o er Organizations representing the NEZ as outlined
in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6,2004.
t
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development �
Corporation(For projects located in Woodbaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL
REQUIRED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS
AFTER THE APPLICATION 1S RECEIVED.
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 30 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.
11. APPLICANT/AG ENT INFORMATION
1. Applicant: AMS 4- Roc_w �EM �L 2. Contact Person:
3. Address: 5A 1(, Var,"& EX ARF 'Fee_rk1Xry,_7�. 7G lol,
Street City State Zip
4. Phone no.: 90-5 71 - 1$31 5. Fax No.: f st!i�6 %n -t4$g -Z(,(>f-,
6. Email: l13
7. Agent(if any) C' iel'ot-
R, Address: -5'La3 ad GL�&� Dt G FatlwtlE `�� 7 Oj
Street Olty State Zip
9. Phone no.: inn -j l-f-S1D� IO. Fax No.: %1-)-q7t--2J cyn,
11. E-mail: .5
if you need further informs on or earification,please cont Jamie Warner at(817)392-7507 or
.arch Odle at(817)392-7316.
Revised September 20.2003 t
FOitT WORTH
Application No.
PROJECT EUG1 UTY
1. Please list down 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 an exhibit showing the location of the project.
Table 1 Pro Ownership
Add rens Zip Civil ine. r*ntion
(Pro ect Location) Code Subdivision Name Lot No_ Block No.
F b 1 a)
Q LJ 3D u
Other properties owned in the City of Fort Worth -continue on a separate sheet and attach if necessary. �BB(
s I'L 1 .6 76 1'D2 L AX-MJ l ,t- c[7—
S-42-'i-
z'i- AJ� , 11wo tZLW6Mz 13 f 114
z$ a 0 6 o wue 1 +ZL '-
F rJ 6 a Aal-en rc fJ
(Please attach additional sheets or paper as needed.)
2. For each properties listed in Table 1,please check the boxes below to indicate if:
• there are taxes due:or
• there are City liens; or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Coinmission's Order of Demolition where the property was demolished within the last five
years.
Table 2 Pru Taxes and Ci r Liens
Address Property City Liens on Property
Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens liens Demolition
El
ao re�ZURw pJ�(Z
El El
El
o RN ArA1 D�GZ
stir RN
��tzs DI
❑ ❑ 0 El
❑ ❑ ❑
(Please attach additional sheets of paper as needed.)
Revised Seotember 20,2004 2 r �L` �
FoRTWORTH
Application No.
3. Do you own other properties under other names? ❑ Yes ONO
If Yes,please specify
4. Does the proposed project conform with City of Fort Worth Zoning? %Yes ❑No
If no,what steps are being taken to insure compliance?
S. Pro fest Type: g ❑ ❑ ❑ ❑ ❑
Single Multi- Commercial Industrial Community Mixed-Use
Family Family Facilities
6. If your project is a commercial, industrial, or mixed-use project, please describe the types of
businesses that are being proposed:
7. Is this a new construction or rehab project?
IgNew Construction ❑Rehab
8. How much is the total development cost of your project?
9. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District(TAD)
assessed value of the structure during the year rehabilitation occurs? )<Yes ❑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.
10. How much is the total square footage of your project? 2 � p square feet
11. For a sinEle-family homeownership, mixed-use, or multi-family development proiect, please f out
the number of residential units based on income range of owners or renters in the following to le.
Table 3 Number of Residential Units and Income Range of Owners or Renters
:. :: umber of Units _: . :.:..: . .... Pet-tentage
>800/o of AMFI**
At or below 80%of AMFI
Trdi:UMts..
**AlvtFl.Area Median Familv Income. Please see attachment for income and housing payment guidelines.
12. Fora multifamily project to be qualified for tax abatement, at least 20% of total units shall
affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of Jit
requirement. ❑
13. For a commercial. industrial or community facilities proiect, indicate square footage of non-
residential space.
Commercial Industrial Community Facilities CAM)
square feet square feet square feet
Rerised September 20,2004 3
FORT WORTH
Application No.
PLEASE ANSWER QUESTIONS NO.14 TO NO. 16 ONLY 1F VOL] ARE APPLYING FOR TAX
ABATEMENT.
14. How much will be your Capital Investment's** 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 Capital Investment of the Project
Items Amount notes
Total::.
***Capital Investment includes only real property improvements such as nem facilities and structures,site improvements_ facility
expansion. and facility modemi=tion. 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
15. For a commercial industaef=owmuni facility or mixed-use ro%eet, how many employees will the
project generate? P Pty
16. For a mixed-use prof se indicate the percentage of a in the project in the following table.
Table 5 Percentage of Uses in a Mixed-Use Project l�
TYPe::" Square Footage j Percentage
Residential
Office
Eating
Entertainment
Retail sales
Service
Tot l .
Ill. INCENTIVES
1.What incentives are you applying for'
Municipal Property Tax Abatements
Must rovide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
Uq 5 years ❑ More than 5 years
Development Fee Waivers
All building permit related fees(including Plans Review and Inspections)
❑ Plat application fee(including concept plan, preliminary plat,final plat, short fOTM replat) 414
❑ Zoning application fee ❑ Board of Adjustment application fee
❑ Demolition fee ❑ Structure moving fee
❑ ('ommunity Facilities Agreement(CFA)application fee
❑ Street and utility easement vacation application fee
Impact Fee Waivers h
KImpact fee deter Size No.of meters?
Release of City Liens
❑ Weed liens ❑ Paving liens
❑ Board up/open stiucture liens ❑ Demolition liens
Revised September 20.2004 4
•. .- ..... C 0'7-f
FoRRTT WoR`TH
8 Application No. —
III. ACKNOWLEDGMENTS
I hereby certify that the information provided is true and accurate to the best of my knowledge. l hereby
acknowledge that l 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 1 am responsible in obtainitig required permits and inspections from the Cifi, 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 requested by the City.
Ir
(TYPED NAME) (AUTHORIZED ORIZED SIGNATURE) (DATE)
Please mail_or fnxAo9tr appGcatt-on to: _
City of Fart'Wrirth, Housing Department.
1(140 Throckmoiton Street,Fou-t ti�'o-tb,'1"czas'76102
(817)392-7335
Electronic version of this form is available by request. Please ca11817-392-7507 to request a copy. For more
infotrnation on t}ueNEZ Program;please visit our web site at www fortworthgov.orglhousing.
For Office Use Only
Application No. In which NEZ? Council District
Application Completed Date(Received Date): Conform with Zonin`? ❑Yes �o
Type? ❑SF ❑Multifamily ❑Commercial ❑Industrial ❑Community facilities ❑Mixed-Usc
Construction completion date? ❑ BeforeNEZ❑After NEZ OwnershipSite Control ❑Yes❑No
TAD Account No. Consistent with the NEZ plan? ❑Yes ❑No
Meet affordability test? ❑Yes ❑No Minimum Capital Investment? ❑Yes ❑No
Rehab at or higher than 3010? ❑ Yes ❑No Meet mixed-use definition? ❑ Yes ❑No
Tax current on this property? ❑ Yes ❑No Tax current on other properties? ❑Yes ❑No
City liens on this property? City liens on other properties?
• Weed liens ❑Yes ❑No • Weed liens ❑ Yes ❑No
• Board-up/open structure liens ❑ Yes ❑No • Board-up/open structure liens ❑ Yes ❑ No
• Demolition liens ❑ Yes ❑No • Demolition liens ❑ Yes ❑No
• Paving liens ❑ Yes ❑No - Pavine,liens ❑Yes ❑-No
• Order of demoli tion ❑ Yes ❑No - Order of demol ition ❑Yes ❑No
Certified? ❑Yes ❑No Certified by Date certification issued?
If not certified,reason
Referred to: ❑Economic Development __[]Housing ❑Develo ment ❑Water ❑Code ❑TPW
Revised September 20,2004 i
Exhibit "D"
Proiect Description
Single Family Residence
4 bedrooms
2 1/2 bathrooms
2 Car Garage
2284 total square feet
1850 square feet living area
Page 1 of 2
City of Fort Worth, Texas
` Mayor and Council Communication
COUNCIL ACTION: Approved on 4/26/2005
DATE: Tuesday, April 26, 2005
LOG NAME: 05PEREZ REFERENCE NO.: C-20676
SUBJECT:
Authorization to Enter into a Five Year Tax Abatement Agreement with Arturo and Rocio Perez,
for Property Located at 5400/5404 Fernander Drive in the Ridglea/Como Neighborhood
Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement (the
agreement) with Arturo and Rocio Perez are true and correct; and
2. Authorize the City Manager to enter into a five year Tax Abatement Agreement with Arturo and Rocio
Perez, for the property at 5400/5404 Fernander Drive in the Ridglea/Como Neighborhood Empowerment
Zone (NEZ) in accordance with the NEZ Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Arturo and Rocio Perez are the owners of the property at 5400/5404 Fernander Drive , (Harlem Hills
Addition; Block 11 Lot 11 &12) which is located in the Ridglea/Como Neighborhood Empowerment
Zone. Mr. & Mrs. Arturo and Rocio Perez have applied for a five-year municipal property tax abatement
under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-13208R, M&C G-13580, M&C G-
13662, M&C C-19551 and M&C G-14327), as amended. The NEZ Basic Incentives offers a five-year
municipal property tax abatement on the increased value of improvements to the qualified owner of any new
home constructed within a NEZ. The Housing Department has reviewed the application and certified that
the property meets the eligibility criteria to receive NEZ municipal property tax abatement.
The owner plans to invest a total of $115,000 to construct a single family home in the Ridglea/Como NEZ,
which will serve as the primary residence for Arturo and Rocio Perez. A project description is attached as
Exhibit "A" and a property description is attached as Exhibit "B." The Tax Abatement Agreement is attached
as Exhibit "C".
Upon execution of the Agreement, the total assessed value of the home used for calculating municipal
property tax will be frozen for a five-year period, starting on January 1, 2006, at the pre-improvement value
as defined by the Tarrant Appraisal District (TAD) on January 1, 2005 as follows:
Pre-construction TAD value of improvements $ 19,700
Pre-construction TAD value of land $ 5,000
Total pre-improvement estimated value $24,700
The municipal property tax on the improved value of the home after its construction is estimated
at $994.75, per year, for a total of $4,973.75 over the five-year period. However, this estimate may be
different from the actual tax abatement value, which will be calculated based on the TAD appraised value of
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/13/2006
Page 2 of 2
the property.
The tax'abatement agreement provides that the agreement may be assigned without subsequent City
Council approval to Arturo and Rocio Perez's first mortgage, or to a homebuyer who will use the required
improvements as his/her primary residence, or to the homeowner's mortgagee. All other assignments must
be approved by the City Council.
This property is located in COUNCIL DISTRICT 7.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office b Dale A. Fisseler (6266)
Originating Department Head: Jerome Walker (7520)
Additional Information Contact: Roy C. Lopez (7336)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 2/13/2006