HomeMy WebLinkAboutContract 32432 "YA p
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STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
3825 Camp Bowie Blvd
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
Fisseler, its duly authorized Assistant City Manager, and , HCCO Camp Bowie, LLC, owner of
property located at 3825 Camp Bowie Blvd., Block 5, Lot 4 & 5, Hi Mount Addition, in the City
of Fort Worth, Tarrant County, Texas, and as shown on the Plat recorded in Volume 309, Page 52,
Plat Records, Tarrant County, Texas acting by and through Hayden Cutler, its duly authorized
representative,.
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 tax
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 17, 2005. The May 17, 2005 NEZ Incentives are attached hereto as Exhibit"A"
hereby made a part of the Agreement for all purposes.
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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 January 27, 2004, the Fort Worth City Council adopted Ordinance No. 15861
(the"Ordinance") establishing"Neighborhood Empowerment Reinvestment Zone No.14" City of
Fort Worth, Texas (the "Zone") and adopted Resolution No. 3043 establishing "Designation of
West 7th Street/University Drive Area as a Neighborhood Empowerment Zone" (the "NEZ"). On
August 23, 2005, the City Council adopted Ordinance No. 16553-08-2005 (the "Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 27 City of Fort Worth, Texas
(the" Zone")
F. Owner owns certain real property located entirely within the Zone 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 rehabilitate an office building,Required Improvements,
as defined in Section 1.1 of this Agreement,on the Premises (the"Project").
H. On June 14, 2005, Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "C" 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, along with a copy
of this Agreement, has been finnished 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 interior and exterior renovation, (i) of at least 5,280
square feet in size, and (ii) having a construction cost upon completion of $190,000
including side development costs but such minimum construction costs shall be reduced by
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any construction cost saving (collectively, the "Required Improvements"). The type,
number and location of the Required Improvements are described in Exhibit "D". Owner
shall provide a copy of the final site plan to City once it is approved by the Department of
Development and the parties agree that such final site plan shall be a part of this Agreement
and shall be labeled Exhibit "E". The final site plan shall be in substantially the same form
as the preliminary site plan. 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"D".
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements within one year from the issuance and receipt of the first building permit,
unless delayed because of force majeure, in which case the one-year 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, strikes, national disasters,
wars, riots and material or labor restrictions, and shortages as 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 Required Improvements shall be constructed and the
Premises shall be continuously used as a general office building and in accordance with
the description of the Project set forth in the Exhibit "D". 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.
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 Premises and the Required Improveme
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their values on January 1, 2005, and this amount is $166,109, 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 imposed by the
City of Fort Worth 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. 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
Premises over its value on January 1, 2005, including the Required Improvements, up to a
maximum of$534,163. In other words,by way of example only, if the increase in value of
the Premises over its value on January 1, 2005, including the Required Improvements, in a
given year is $550,000, Owner's Abatement for that tax year shall be capped and calculated
as if the appraised value of the Premises for that year had only been$534,163.
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 1 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
provided, shall end on December 31 immediately preceding the fifth (5'h) 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 $1,000. The
application fee shall not be credited or refunded to any parry for any reason.
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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 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. 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 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
terns 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 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.
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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? 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 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 Damages.
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 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
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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.
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.
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.
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.
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 HCCO Camp Bowie, LLC
Attn: City Manager Attn: John Cockerham
1000 Throckmorton 1320 S. University Drive Ste. 1015
Fort Worth, TX 76102 Fort Worth, TX 76107
and
Housing Department
Attn: Jerome Walker
1000 Throckmorton
Fort Worth, TX 76102
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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"D",
the body of this Agreement shall control. As of August 23, 2005, 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.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-20923 on August 23, 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.
8 R �'�W9 Uhl
7.7. Owner Standing.
Owner shall be deemed a proper and necessary parry 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.
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EXECUTED this day of , 2005, by the City of Fort Worth,
Texas.
a l
EXECUTED this ! day of J(? JA em Ij-e 2. , 2005,by Haydin Cutler.
CITY OF FORT WORTH:
By: By:
.all . Fisseler Hayd n Cut er
Assistant City Manager President
ATTEST: ATTEST:
By: By:
City Secretary
APPROVED TO FORM AND LEGALITY:
By:
Cynthia darcia
Assistant City Attorney
M & C: C-20923
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Dale A.
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 1,41Y HAND AND SEAL OF OFFICE this 30-1 day of
12005
Notary Pu is 1n and for
the tate of Texas
r. ur-Karn
Notary's 4rinted Name
KATHY F.DURHAM
-*'W" MY COMMISSION EXPIRES
i,tir' January 24,2009
11
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Haydin Cutler, 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
S� -rZ /m 6 e k . 52005.
k-� Q CA"LJOJ
Not tWy>o RITA A.blit in and for ��� SINGLETON
The State of Texas NOTARY PUBLIC
STATE OF TEXAS
of��Py MY Comm.Expires'12-15-2008
Notary's Printed Name
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 Site Plan
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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 carry 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 1000 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) .
Adopted May 17, 2005 1
EXHIBIT A
"City of Fort Worth Tax Abatement Policy Statement" means the policy
adopted by City Council on February 29, 2000.
"Commercial/Industrial 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" , "Commercial/Industrial
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.
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Adopted May 17, 2005 2
EXHIBIT A
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.
Adopted May 17, 2005 3
EXHIBIT A
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 multi-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 May 17, 2005 4
EXHIBIT A
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 throu-qh 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.
Adopted May 17, 2005 5 n
EXHIBIT A
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES 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 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.
Adopted May 17, 2005 6
EXHIBIT A
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 May 17, 2005 7
EXHIBIT A
(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 May 17, 2005 8
EXHIBIT A
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
8. 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:
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
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.
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
A isl>�l U
r,
Adopted May 17, 2005 9 e " ' � �!s l•
EXHIBIT A
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 specified 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 111.6, C or D must:
Satisfy the criteria set forth in Sections 111.6, C or D, as applicable, and Sections
III.E.1 E.2; and E3. and
File an application with the Housing Department, as applicable; and
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
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
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
Adopted May 17, 2005 10
EXHIBIT A
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. The application fee for residential tax abatements governed under Section III.A is
$25.
2. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, not to
exceed $1,000. 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
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;
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
Adopted May 17, 2005 11
EXHIBIT A
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 Project. Before construction, the applicant must
ensure that the project 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
Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT FEES
Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
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
required. Applicant may 'request the additional amount of impact fee waiver
through the Housing Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
Adopted May 17, 2005 12
EXHIBIT A
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.
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.
B. WEED LIENS
The following are eligible to apply for release of weed 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 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.
I �i'r„1',c;•�i� �i�Q�
Adopted May 17, 2005 13
EXHIBIT A
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 III. IV, AND V
1. The Housing Department will review the application for accuracy and
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.
Adopted May 17, 2005 14
EXHIBIT A
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 department/office 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) T
he 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
(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
Adopted May 17, 2005 15
EXHIBIT A
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
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, 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:
(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.
Adopted May 17, 2005 16
EXHIBIT A
(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
I --]
N t1°�(
Adopted May 17, 2005 17
EXHIBIT A
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 with the owner/developer within two weeks of initial contact.
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
Adopted May 17, 2005 18
EXHIBIT A
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES OLICY
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 for qualified 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 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.
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
c. The owner and/or developer has put funds in an escrow account with a City Deparmmzent
while awaiting a decision from the City Council about his/her project; or ;;2';;C"
�I;;; �9'-��;^0,1
d. City Council authorizes a City Department to issue a refund to the owner/develop ,�S
n �1C
V� LII�A'1
Imo, cn
J 'y J,`J .U �l
Adopted May 17, 2005 19
EXHIBIT A
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 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 May 17, 2005 20
EXHIBIT B
Property Description
3825 Camp Bowie Blvd.
3825 Camp Bowie Blvd.; Block 5, Lots 4& 5, Hi Mount Addition; in the City of Fort Worth,
Tarrant County, Texas, and as shown on the Plat recorded in Volume 309, Page 52, Plat Records,
Tarrant County, Texas.
Jun 10 05 06s26p Haydn Cutler Campany 617 335 5045
EXHIBIT C
ORT WORT ��,q
Application No.
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ)PROGRAM
PROJECT CERTIFICATION APPLICATION- FORM"C" FOR DEVELOPMENT PROJECTS
I. APPLICATION CHECK LIST
Plcaseobmit the following documentation:
�
completed application farm
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,commercial,industrial,commercial facilities,and mixed-use tax
abaument applications:0.5%of the total Capital Investment of the project,not to exceed$1,000.00;For
single family tax abatement applications:$25 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 completed set of development plans,project description an4 development budget or contractor's quote
❑ Met with the Councilmember and Neighborhood&other Organizations represen m the NEZ as outlined
in the Public Notice requirement of the NEI.Policy and Guidelines revised April 6,2004.
Copy of Incorporation Papers noting all principab''partners,and agents
EJSupport letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL. NOT RE PROCESSED FOR CERTIFICATION UNTIL Aid.
REQUIRED DOCU.MINTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS
AFTER THE APPLICATION IS RECEIVED.
YOU MUST APPLY FOR TAX ABATEME,IiT BEFORE ANY BUILDING PERIWrS ARE ISSUED FOR
YOUR PROPRRTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT
TAKES 30 TO 90 BUSINESS DAYS TO COMPLETE THE TAX- ABATEMENT AGREEMENT
APPROVAL PROCFWS AFTER THE ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE
COMPLEXITY OF YOUR PROJECT.
IL APPLICANT/AGENT INFORMATION
1. Applicant: HCCO Camp Bowie, LLC 2. Contact Person: John Cockerham
3. Address: 1320 S. University Dr. 01075, Fort Worth, TX 76107
Street City State Zip
4. Phoneno.: (817) 336-2425 5, Fox No.: (817) 335-5045
6. Email: f cockerham@haydricut1gr_com _,
7. Agent(if any)
S. Address:
Street City State Zip
9. Phone no.: 10. Fax No.:
11. Email:
If you need further informatiou or clarification,please contact Jamie Warner at(817)392-7507 or
U 0 ;,"'✓�� I(ti y u�L'
Jun 10 05 06s23p Haydn Cutler Company 817 335 5045 p. 2
�Xffi��T FORTWORTH
Application No. (0(_
PROJECT ELIGIBILITY
1. Flom 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 b available. Attach an exhibit showing the location of the project.
Table 1 Property Ownership
Address Zip T.agsl D rinflnn
ro ect I,acatiott Code Subdivision Name _ Lot No. Block No.
3825-3829 Camp Bowie 76107 Hi Mount & 5 5
Other properties owned in the City of Bort Worth -continue on a separate sheet and attach If necessary.
(Please attach additional sheets of 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, assoaiales, 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 ProTaxes and City Liens
Address Property City Liens on Property
Taxes Weed Soard-up/Open Demolition Paving Order of
Due Liens Stucture Lieos liens Liens Demoiition
None Qf the ro tie
sub ect to any of Li
these El
EJ Li
Li
El
a
(Please attach addilionol sheets of paper as needed.)
Jun 10 05 06:24p Haydn Cutler Company 817 335 5045 p.4
6XN'3,T G
ORTWORT
Application No. -96 YC - OLI&
3. Do you own other properties ander other names? ®Yea❑No
if Yes,please specify $ee Attached Listing
4. Does the proposed project conform with City of Fort Worth'Caning? ®Yes ❑No
If no,what steps are being taken to insure compliance?
5. Project Type: ❑ ❑ 0 0 ❑ ❑
,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:
Real Estate and GEneral Office use
7. Is this a new construction or rehab project?
[;New Construction ®Rehab
8. How mach is the total development cost of your project? t 1.90,000
9.' Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District(TAD)
ss
aessed value of the structure during the year rehabilitation occurs? Yes ❑No
" Eligible rehabilitation includes only physical improvements to real property. It does NOT include 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'! 5,280 square feet
11.Icor a single family homeownership, mixed-use,or-m tt lti-family development project,please fill out the
number of residential units based on incoine range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Ran a of Owners or Renters
>80%of AMFI*
At or below 805'o of AMFI
'*AMFI:Area Median Family income. Please see attachment for income and housing payment guidelines,
12. For a multifamily project to be quallfled for tax abatement, at least 209A of total units shall be
affordable to families'at or below 80% of AMFI. Check the box if you are requesting a waiver of this
requirement. ❑
13. For--a commercial, industrial or communilX fAcilities project indicate square footage of nuiv
residential space.
Commercial Industrial Community Facilities
5,2§0 square feet _0_ square feet -0- square feet
PLEASE ANSWER QUESTIONS NO.14 TO NO. 16 ONLY IF YOU ARE APPLYING FOR TAX
ABATEMENT.
Jun 10 05 M 24lo Haydn Cutler Company 817 335 5045 p.G
ORT WORT
Application No, 4,�_
14.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 Ca ital Investment of the Pro'Oct
I
1 _
*'*Capital Investment includes only real property improvements such as new facilities and structures,site improvements,facility
expansion, and facility moderalzation. Capital investment DOES NOT include land acquisition costs and/or any existing
improvements,or personal properly(such as maehinary,equipment,and/or supplies or inventory).
15.For a commergial,industrial, community facility or mixed-use prosect, how many employees will the
project generate?1_
16. For a mixed-use,project.please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a Mixed-Use Project
MEN
Residential _
Office
Eating
Entertainment _
Retail sales _ �—
Service w
111. INCENTIVES
1.What incentives an you applying Torr!
Municipal Property To Abatements VQL 309 PAGE 52
Must provide dual Plat Cabinet and Slide for Tax Abatement Cabinet Slide
5 years ❑ More than 5 years
Development Fee Waivers
[� All building permit related fees(including Pians Review and Inspections)
Plat application foe(including concept plan,prcluninary plrit,Dnal plat,short fonn replat)
®
Board of Adjustment application fee
(� Demolition fee
❑ Structure moving fee
n Community Facilities Agreement(CFA)application fee
❑ Zoning application fes
❑ Street and utility easement vacation application fee
Impact Fee Waivers
❑ Impact fee Meter Size No.of meters?
Release of City Liens
n Weed liens ❑ Paving liens
Jun 10 05 06:25p Haydn Cutler Company 817 335 5045 p.7
5X14,13rT �'-
ORTWORT
Application No.
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 NP.Z Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application cr 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 pennits and inspections from the City and in
ensuring the project is located in the correct zoning district.
I understand that my application will not he processed if it is incomplete. 1 agree to provide any additional
information for determining eligibility as requested by the City.
JohI3 CoC arham manaigar, LL. ��.., _ 6/9/05
(TYPED NAME) At1THOIUMD SIGNAT M.) (DATE)
Electronic version of this form is available by request Please call 817-3924507 to request a copy.For more
information on the NEZ Program,please visit our web site at www.fortworthgoy.org/housing.
For Office Ume Only
Application No. - -,0CP&I In which NEZ7 Council District
Application Completed Date(Received Date): j35 - Conform with Zoning? [Z Yes ❑No
Type? ❑SF ❑Multifamily [A Commercial ❑Industrial ❑Community facilities 0 Mixed-Use
Construction completion date? ❑Before NEZ AfterNEZ Ownership/Site Control ❑Yea❑No
TAD Account No, pi W-9&a. Consistent with the NEZ plan? ®Yes ❑No
Meet affordability test? ❑Yes ❑No Minimum Capital investment? 52 Yes ❑No
Rehab at or higher than 30%? ®Yes ❑No Meet mixed-use dcfinition? ❑Yes ❑No
Tax current on this property? ®Yes ❑No Tax current on other properties? ®Yes ❑No
City licas on this property? City liens on other properties?
• Weed liens ❑Yes ®No • Weed liens ❑Yes ®No
• Board-up/open structure Gens ❑Yes R No a Board-up/open structure liens ❑Yes ®No
■ Demolition liens ❑Yes R No • Demolition liens ❑Yes ®No
■ Paving liens ❑Yes ®No • Paving liens ❑Yes ®No
• Order of demolition ❑Yes rg No • Order of demolition ❑Yes C'No
Certified? (9 Yes ❑No Certified by Date certification issued? to-At-'05
If not certified,reason
Referred to: Economic Development ❑Housui []Development ❑Water ❑Code C]TPW
Jun 10 05 06t26p Haydn Cutler Company 817 335 5045 p.8
�XFf�P,i C
ORT�ORT
Application No. _6f
ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES
Family Size 80% of Median Income* Maximum Housing Payment Affordable for
Individuals or Families
at 80% of Median Income
1 $35,100 $877
2 $40,150 $1,003
3 $45,150 $1,128
4 $50,150 $1,253
5 $54,150 $1,353
6 $58,200 $1,455
7 $62,200 $1,555
8 $66,200 $1,655
*Source:2004 Fort Worth-Arlington PMSA HUD Income Guidelines
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Jun 10 05 06:24p HaSdn Cutler Company 817 335 5045 p.5
6Xl-l13T C
3825 Camp Bowie Blvd
Fort Worth,TX 76107
PROPOSED CAPITAL INVESTMENT
Interior Demolition&Removal 6,600
Asbestos Remediation 4,000
Roofing/Skylights 30,980
11VAC 4,500
Exterior Remodel&Refurbishment 17,520
Re-glazing 71500
Interior Partitioning,Wall Treatments 36,500
Interior Doors, Hardware,Glazing 6,000
Flooring 26,400
Lighting,Electrical 13,200
Telecom 2,250
Plumbing 22,500
Other 7.050
TOTAL 190,000
'1 �p
EXHIBIT D
Project Description
3825 Camp Bowie Blvd.
Rehabilitation
One story, General Office Complex, 5,280 square feet
Interior Demolition and Removal
Asbestos Remediation
Roofing/skylights
HVAC
Exterior Remodel &Refurbishment
Window Reglazing
Interior Partitioning, wall Treatments
Flooring
Lighting, Electrical
Telecom
Plumbing
Interior Doors, hardware, Glazing
Other
Page 1 of 2
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 8/23/2005 - Ordinance No. 16553-08-2005
DATE: Tuesday, August 23, 2005
LOG NAME: 05HCUTLER2 REFERENCE NO.: C-20923
SUBJECT:
Adopt Ordinance to Designate Fort Worth Neighborhood Empowerment Reinvestment Zone
Number 27 and Authorize Entering Tax Abatement Agreement with HCCO Camp Bowie, LLC, for
Property Located at 3825 Camp Bowie Boulevard in the West 7th Street/University Neighborhood
Empowerment Zone
RECOMMENDATION:
It is recommended that the City Council:
1. Hold a public hearing concerning the designation of .5165 acres of land as described in Exhibit"A" as
Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) Number 27;
2. Adopt attached ordinance to designate the area as FWNERZ Number 27 pursuant to the Texas
Property Redevelopment and Tax Abatement Act, Tax Code, Chapter 312;
3. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with HCCO
Camp Bowie, LLC are true and correct;
4. Approve a five-year Municipal Property Tax Abatement for a property located at 3825 Camp Bowie
Boulevard in the West 7th Street/University Neighborhood Empowerment Zone (NEZ) owned by HCCO
Camp Bowie, LLC; and
5. Authorize the City Manager to enter into the Tax Abatement Agreement with HCCO Camp Bowie, LLC
for the property located at 3825 Camp Bowie Boulevard in the West 7th Street/University NEZ in
accordance with the NEZ Tax Abatement Policy and NEZ Basic Incentives, as amended.
DISCUSSION:
Chapter 378 of the Texas Local Government Code provides that a municipality can offer an abatement of
municipal property taxes for properties located in a Neighborhood Empowerment Zone.
HCCO Camp Bowie, LLC is the owner of the property located at 3825 Camp Bowie Boulevard. The
property is located in the West 7th/University NEZ. HCCO Camp Bowie, LLC has applied for a five-year
municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentive (M&C G-
14802, as amended). The Housing Department reviewed the application and certified that the property
meets the eligibility criteria to receive NEZ municipal property tax abatement. The NEZ Basic Incentive
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. HCCO Camp Bowie, LLC will
invest, at a minimum, $190,000 to expand a professional office. The project is described in Exhibit "B".
City staff recommends that City Council designate the .5165 acres of land (3825 Camp Bowie Boulevard)
and more particularly described in the attached Ordinance as FWNERZ Number 27, so that the City can
enter into a tax abatement agreement under the guidelines set forth in the Tax Code and the NEZ Tax
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 10/13/2005
Page 2 of 2
Abatement Policy and Basic Incentive. The form of the tax abatement agreement is attached as Exhibit "C"
TAX ABATEMENT TERMS
Upon execution of the agreement, the total assessed value of the improvement used for calculating
municipal property tax will be frozen for a period of five years, starting on January 1, 2006, at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2005, for the
property as follows:
Pre-improvement TAD Value of Improvements $166,109.00
Pre-improvement Estimated Value of Land $225,000.00
Total Pre-improvement Estimated Value $391,109.00
The municipal property tax on the improved value of the property is estimated at $493.05 per year for a total
of $2,465.25 over a five-year period. However, this estimate may differ from the actual tax abatement
value, which will be calculated based on the TAD appraisal value of the property.
In the event of a sale of the property, the agreement may be assigned, with City Council approval, to the
new owner(s), so long as the new owner(s) meets all of the eligibility criteria as stated in the NEZ Tax
Abatement Policy and Basic Incentives.
As required by Chapter 312 of the Texas Tax Code, a public hearing must be conducted regarding the
creation of the Zone. Notice of this hearing was (1) delivered to the governing body of each affected taxing
unit and (2) published in a newspaper of general circulation at least seven days prior to this hearing.
The proposed area meets the criteria for the designation of a reinvestment zone contained in Chapter 312
of the Tax Code. As a result of the designation, the area will contribute to the retention or expansion of
primary employment and attract major investment in the zone that would be a benefit to the property and
contribute to the economic development of the municipality. Further, future improvements in the zone will
benefit the City, after any Tax Abatement Agreements that may be entered into have expired.
The proposed FWNERZ Number 27 expires after five years and may be renewed for periods not to exceed
five years.
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 by: Dale Fisseler (6140)
Originating Department Head: Jerome Walker (7537)
Additional Information Contact: Jerome Walker (7537)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 10/13/2005