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HomeMy WebLinkAboutContract 34709CITY S�C�iEiARI( CONiRACT i�� . STATE OF TEXAS § COUNTY OF TARRANT § TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 1308 Montoya Lane This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal coiporation organized under the laws of the State of Texas and acting by and through Dale Fisseler, its duly authorized Assistant City Manager, and Sierra Vista, L.P. ("Owner"), a Texas Limited Partnership, Vertex Investments, Inc. General Partner, acting by and through Michael J. Mallicic, its duly authorized President. 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 conect and constitute the basis upon which the City and Owner have entered into this Agreement: A. Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empowerment Zone (NEZ) if the municipality determines that the creation of the zone would promote: 1. The creation of affordable housing, including manufactured housing in the zone; 2. An increase in economic development in the zone; 3. An increase in the quality of social services, education, or public safety provided to residents of the zone; or 4. The rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a NEZ, may enter into agreements abating municipal property taxes on property in the zone. C. On July 31, 2001, the City adopted basic incentives for property owners who own property located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and including guidelines and criteria governing tax abatement agreements entered into between the City and various third parties, titled "NEZ Basic Incentives" ("NEZ Incentives"), these are readopted on October 4, 2005 (M&C G-14947). The October 4, 2005 NEZ Incentives are attached hereto as Exhibit "A" hereby made a part of the Agreement for all purposes. c. _,, p"�,;- oirll l ! � i n. i ), V���7�,��u�� 1:�V���� � ��l' � �� �i �. " r ,' ?��,�,ii°�' � ?�Yj'ii��'� �� V IU � ��, , :�� •:;'a nl � ��d � 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 21, 2003, the Fort Worth City Council adopted Ordinance No. 15411 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 8," City of Fort Worth, Texas (the "Zone"). F. Owner owns certain real property located entirely within the Rolling Hills NEZ and that is more particularly described in Exhibit "B", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used for as a single-family residence to be that will be owner occupied. (the "Project"). H. On January 10, 2005, Owner submitted an application for NEZ incentives and an application for tax abatement to the City concerning the coniemplated use of the Premises (the "Application"), attached hereto as Exhibit "C" and hereby made a part of this Agreement for all purposes. I. The City CounciI finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Resolution and other applicable laws, ordinances, rules and regulations. J. The City Council finds that the terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Written notice that the CiTy intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the �Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contrract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Propertv Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain .improveinents consisting of a single-fannily residence (collectively, the "Required Tmprovements"), (i) of at least 1200 square feet of living space in size with 3 bedrooms and one and one-half baths, and (ii) having an appraised value of $80,000.00, as determined by an independent appraiser (collectively; the "Required� Improvements"). Owner shall provide a survey of the completed home showing Required Improvements before the home is sold. The parties agree that the final survey shall be a part of this Agreement and shall be labeled Exhibit E. Minor variations, and more substantial variations if approved in writing by both 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 Tmprovements are used for the purposes and in the manner described in Exhibit "D". 1.2. Comnletion Date of Required Improvements. Owner covenants to substantially complete construciion of all of the Required Improvements within two years from the issuance and receipt of the building permit, unless delayed because of force majeure, in which case the two years shall be extended by the number of days comprising the specific force majeure. For purposes of this Agreement, force majeure shall. mean an event beyond Owner's reasonable control, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmental authority, or acts of God, fires, 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 mattexs, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use oi Premises. Owner covenants that the Required Improvements shall be constructed and the Premises shall be sold so tl2at it is continuously used as the primary residence of the Home Buyer 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 Zorie. . 2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. � Subject to and in �ccordance with this Agreement, the City hereby grants to Owner a real property tax abatement on the Premises, the Required Improvements, as specifically provided in this Section 2("Abatement"). "Abatement" of real property taxes only includes City of Fort Worth-imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises and the Required Improvemenis over their values on January 1, 2006, 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 foota.ge reguirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abater.nent shall apply only to taxes on the increase in value of the Premises due to construction of tlie Required Tmprovements and shall not apply to taxes on the land. 2.3. Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which a Required Improvement is sold to a Home Buyer to be used as its primary residence ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5�') aruuversary of the Beginning Date. Upon the sale to a Home Buyer, City shall certify that the Required Improvements have been completed in satisfaciion of the terms of the agreement. However, the Compliance Auditing Term will begin on the date this agreement is executed and will end on the expiration fate of the Term. 2.4. Protests Over Appraisals or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. � 2.5. Abatement Apptication Fee. The City acknowledges receipt from Owner of the required Abatement application fee of $100.00 per single family house. The application fee shall not be credited or refunded to any party for any reason. 3. RECORDS, CERTIFICATION AND EVALUATION OF PROJECT. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any time during construction of the Required Improvements 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. Certi�cation. Owner shall certify annually to the City that it is in compliance with each applicable term of this agreement. The City shall have the right to audit at the City's expense the Requ'ired Improvement with respects to the specifications listed in Exhibit D. Owner must provide documenta.tion that Owner is using the Required Improvements as its primary residence (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make alI applicable Records available to the Ciiy on the Premises or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3. Provision of Information. On or before February 1 following the end of every year during the Compliance Auditing Term and if requested by the City, Owner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. Failure to provide all information within the control of Owner required by this Seciion 3.3 shall constitute an Event of Default, as deimed 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 percenta.ge of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percenta.ge 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. De�ned: Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner fails to construct the Reqtured 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) HOME BUYER DOES NOT USE THE PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS, (iv) HOME BUYER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an"Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City deiermines 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 Pavment of Liquidated Dama�es. 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 hartn 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 tfie� 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 amourit shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty (60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any. outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective date of the termination of this. Agreement; (ii) there shall be no recapture of any .taxes previously abated; and (iii) neither party shall have any further riglits or obligations hereunder. 4.5. Sexnally oriented Business & Liquor Stores or Package Stores. a. Owner understands and agrees the City has the right to terminaie tkus agreement if the Project contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Project contains or will contain a liquor store or package store. . 5. EFFECT OF SALE OF PREMISES. Except for an assignment to HIVII� Lifestyles, L.P., or any other builder or developer approved by the Housing Departrnent Director, or Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to, this Abatement cannot.be assigned without the prior consent of the City Council, which consent shall not be unreasonably withheld provided thai (i) the City Council finds that the proposed assignee is financially capable of ineeting. the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without. the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. 6. Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's_ mortgagee, Owner shall have no further obligations or duties under this agreement. In addition, upon assignment to any other entity with the written consent of City Council, Owner shall have no further duty or obligation under this agreement. IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN TAE EVENT OF A SALE OR ASSIGNMENT. THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other parry or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager 1000 Throckmorton St. Fort Worth, TX 76102 and Housing Department Attn: Jerome Walker 1000 Throckmorton Fort Worth, TX 76102 7. MISCELLANEOUS. 7.1. Bonds. Owner: Sierra Vista, L.P. Vertex Investments, General Partner 3715 Camp Bowie Blvd. Fort Worth, TX 76107 Tlie 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 Tmprovements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Plannuig 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 conf;rol. In tiie event of any coiiflict between the body of this Agreement and E�iibit "D", the body of this Agreement shall control. 7.4. Future A�qplication. A portion or all of the Premises andlor 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. Citv Council Authorization. This Agreement was authorized by the City Council through approval of Mayor and Council Communication No.C-21313 on February 21, 2006, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoqpel 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, sta.tements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standin�. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 7.9. Recordation. A certified copy of this Agreement in recordable form shall be recorded in the Deed Records of Tarrant County, Texas. , 7.10. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable, the validity, legality and enforceabiliiy of the remaining provisions shall not in any way be affected or impaired. 7.11. Headin�s Not Controllin�. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 7.12. Entiretv of A�reement. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the . entire understanding and agreement between the City and Owner, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. EXECUTED this day of �` U 200�►�by the City of Fort Worth, Texas. � � % EXECUTED this `" day of !' ,��-; `� �.�-� j , 2006, by Sierra Vista., L.P., Vertex Investments, Genera� Pa.rtner. ' CITY OF FORT WORTH: �_ _ -� _ �:" � `� By: : -�. � � �.� Dale Fisseler Assistant City Manager ATTEST: By: City Secretary APPROVED AS TO FORM AND LEGALITY: By: , eann Guzman Assistant City Attorney M & C: C-21313 �;�����;:�i:;� � �:���u��c ���i%,���: ���� � %`� s1� ��,"-., -, :�°��,�w. ����_ STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Dale Fisseler, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate Mayor and Council Communication 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 cansideration therein expressed and in the capacity therein stated. GIVE� ^UNDER MY HAND AND SEAL OF OFFICE this :�day of � iiX� , 2006. / � ����_������� ( �j,j�,� � �i�2���2� a�,t�t�'�l� A��n� ����E�Si_D 1�� Notary Public in and for �� ��-n °''G'�'r�v' �2<<�s�� ; i� A �� / ����� r�� �g� t�t�'_i the State of Texas °?�- `/J� /'� y,�U�-t"��� '`�i% li()n�i(�..`-�{ii.�l9f' �,j. 9 . � 1!'ai:a1°.'_a,4�,�� \�a>'�ra.ern-,.-�:; :c,-.:tzcY;�. �sa:-r.�.e-�ni:x4c�c,:'�-,.�.T,�.��i Notary's Printed Name � '�:i;'f ��'�'\,, J;�'�'y 1� 5 V V' r N'J ��pli j��;?� 11�� ��� `:�:`����:��, ����. STATE OF TEXAS § COUNTY OF TARR.ANT § �' BEFORE ME, the undersigned authority, on this day personally appeared Michael�. Mallick of Sierra Vista, L.P., a Texas Limited Partnership, Vertex Investments, General Partner, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of Sierra Vista., L.P., a Texas Limited Partnership, Vertex Investments, General Partner. G EN UNDER MY HAND " 11 , 2006. �'���-` - T � t -� - n'� C1%�,f � Notary Public in and for the State of Texas r \� -' ;f; : � �, ��v����.� . Notary's Printed Name � �� AND SEAL OF OFFICE this day of o,�.,RY Ppg� DEANNA BOAZ � ��'n Not4fy PUbIIC � State ot Texas �,�� p4�c�' MY Commission Explres August 27, 2pp� Exhibit A: NEZ Incentives Exhibit B: Property Description Exhibit C: Application: (NEZ) Incentives and Tax Abatement Exhibit D: Project description including kind, number and location of the proposed improvements. Exhibit E: Final Survey and Independent Appraisal E%Illblt nAn CITY OF FORT WORTH NEtGHBORHOOD 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: (2) the creation of affordable housing, including manufactured housing, in the zone; (3) an increase in economic development in the zone; (4) an increase in the quality of social services, education, or public safety provided to residents of the zone; or (5) 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 100% of the increase in appraised vaiue (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 October 4, 2005 "City of Fort Worth Tax Abatement Policy Statement" means the poficy 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 Cify 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. "Eligib/e Rehabilitation" Rehabilitation does NOT and/or supplies). includes only physical improvements to real property. Eligible include personal property (such as furniture, appliances, equipment, "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/lndustrial Development Project', "Community Facility Development Project'; "Mixed-Use Developmenf Project'; or a "Multi-family Development Project." "Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone Act, codified in Chapter 2303 of the Texas Government Code. Adopted October 4, 2005 2 III. MUNICIPAL PROPERTY TAX ABATEMENTS A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5 YEARS 1. For residential property purchased before NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following: a. Property is owner-occupied and the primary residence of the homeowner prior to the final NEZ designation. Homeowner shall provide proof of ownership by a warranty deed, affidavit of heirship, or a probated will, and shall show proof of primary residence by homestead exemption; and a. Property is rehabilitated after NEZ designation and City Council approval of the tax abatement. b. Homeowner must perForm Eligible Rehabilitation on the property after NEZ designation equal to or in excess of 30°/a of the Base Value of the property; and c. Property is not in a tax-delinquent status when the abatement application is submitted. 0. For residential property purchased after NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meefing the following: c. Property is constructed or rehabilitated after NEZ designation and City Council approval of fihe tax abatement; d. 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; e. 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 shalf provide the City information to support rehabilitation costs; f. Property is not in a tax-delinquent status when the abatement application is submitted; and g. Property is in conformance with the City of Fort Wo►th Zoning Ordinance. 3. For investor owned single family property, an investor shall be eligible to apply for a tax abatement by meeting the following: Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; 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; Property is not in a tax-delinquent status when the abatement application is submitted; and � Property is in conformance with the City of Fort Worth Zoning Ordinance. B. MULT[-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1. 100% Abatement for 5 vears. If an applicant applies for a tax abatement aareemer�t with a term of five vears or less, this section shall applv. Adopted October 4, 2005 3 Abatements for multi-family development projects for up to 5 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement upon completion, a newly constructed or rehabilitated 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 cosfs 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 Citv Ad Valorem taxes up to 10 vears If an applicant applies for a tax abatement aqreement with a term of more than five vears, this section shall apply. _ Abatements for multi-family development projects for up to 10 years are subject to Cify 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 throuqh 5 of the Tax Abatement Aqreement 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 shalf be set aside for Adopted October 4, 2005 4 persons at or below 80% of the median income as defined by the U.S. Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; and a. For a multi-family development project constructed after NEZ designation, the project must provide at least five (5) residential living units OR have a minimum Capital Investment of $200,000; or , b. For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000. Years 6 throuqh 10 of the Tax Abatement Aqreement 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 leasf five (5) residential living units OR have a minimum Capital Investment of $200,000; or 2. For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property. Such Eligible Rehabilitation costs must come from the rehabilitation of at least five (5) residential living units or a minimum Capital Investment of $200,000. b. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping; . 7. tenant selection plans; and 8. management plans. C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT PROJECTS LOCATED IN A NEZ Adopted October 4, 2005 5. 1. 100% Abatement of Citv Ad Valorem taxes for 5 vears if an applicant applies for a tax abatement aareement with a term of five vears or less, this section shall applv. 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 Citv Ad Valorem taxes up to 10 vears If an applicant appfies for a tax abatement a�reement with a term of more than five vears, 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 throuah 5 of the Tax Abatement Aqreement 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 October 4, 2005 6 Years 6 throuAh 10 of the Tax Abatement Aqreement Commercial, Industrial and Community Facilities Development projects shall be efigible 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 �' c. 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 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. 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 Citv Ad Valorem taxes for 5 vears If an applicant applies for a tax abatement agreement with a term of five vears or less, this section shall applv. 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 � �� `��_��,rr;,��il ":����'�.,1�'`'.l '�s�'���� Adopted October 4, 2005 7 ���'�� ��5��� �`1'�°�� pY `��;n`����W, ��i. 7 1� . `:/� (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 Citv Ad Valorem taxes up to 10 vears If an applicant applies for a tax abatement agreement with a term of more than five vears, this section shall applv. 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 throuqh 5 of the Tax Abatement Aareement 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 saies 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 throuqh 10 of the Tax Abatement Aqreement 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 lnvestment of $200,000; or for a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the Adopted October 4, 2005 8 property shall be at least 30% of the Base Value of the property, or $200,000, whichever is greater; and d. Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not limited to: � 1. utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; � 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3. property inspection; 4. commit to hire an agreed upon percentage of Fort Worth residents 5. commit to hire an agreed upon percentage of Central City residents 6. landscaping; 7. tenant selection plans; and 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: a. Not be delinquent in paying property taxes for any property owned by the owner/developer, except that an owner/developer may enter into a tax abatement agreement with the city of Fort Worth for a specific Project if: 1, the Project meeis 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 permii�ed under state law; and 4. the tax abatement shall provide that the agreement shall take effect after the delinquent taxes are paid in full b. Not have any City of Fort Worth liens filed against any property owned by the applicant property owner/developer. "Liens" include, buf are not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens. 4. Projects to be constructed on property to be purchased under a contract for deed are not eligible for tax abatements. Adopted October 4, 2005 9 5. Once a NEZ property owner of a residential property (including multi-family) in the NEZ satisfies the criteria set forth in Sections III.A, E.1. and E.2. and applies for an abatement, a property owner may enter into a tax abatement agreement with the City of Fort Worth. The tax abatement agreement shall automatically terminate if the property subject to the tax abatement agreement is in violation of the City of Fort Worth's Minimum Building Standards Code and the owner is convicted of such violation. 6. A tax abatement granted under the criteria set forth in Section III. can only be granted once for a property in a NEZ for a maximum term of as 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 III.B, C or D must: a. Satisfy the criteria set forth in Sections III.B, C or D, as applicable, and Sections I I I. E.1 E.2; and E3. and b. File an application with the Housing Department, as applicable; and c. The property owner musi enter into a tax abatement agreement with the City of Fort Worth. In addition to the other terms of agreement, the tax abatement agreement shall provide that the agreement shall automatically terminate if the owner receives one conviction of a violation of the City of Fort Worth's Minimum Building Standards Code regarding the property subject to the abatement agreement during the term of the tax abatement agreement; and d. If a property in the NEZ on which tax is being abated is sold, the new owner may enter into a tax abatement agreement on the property for the remaining term. 8. If the terms of the tax abatement agreement are not met, the City Council has the right to cancel or amend the abatement agreement. ln 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 inspecfion 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, fhe 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 1 st of every year during the life of the agreement, any individual or entity receiving a tax abatement from the City of Fort Worth shall Adopted October 4, 2005 10 F. � A. provide information and documentation which details the property owner's compliance with the terms of the respective agreement and shall certify that the owner is in compliance with each applicable term of the agreement. Failure to report this information and to provide the required certification by the above deadline shall result in cancellation of agreement and any taxes abated in the prior year being due and payable. 11. If a property in the NEZ on which tax is being abated is sold, the new owner may enter into a tax abatement agreement on the property for the remaining term. Any sale, assignment or lease of the property which is not permitted in the tax abatement agreement results in cancellation of the agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred. APPLICATION FEE 1. An application fee of $25.00 for all basic incentives, excluding tax abatements. 2. The application fee for residential tax abatements governed under Section III.A is $100. 3. The application fee for multi-family, commercial, industrial, communify 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, with a$200 minimum not to exceed $2,000. The Application Fee shall not be credited or refunded to any party for any reason. 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 appfication to the City; b. must not be delinquent in paying property taxes for any property owned by the owner/developer or applicant; Adopted October 4, 2005 11 c. must not have any City liens filed against any property owned by the applicant property owner/developer, including but not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens; and d. of a Project that will contain or contains a liquor store, package store or a sexually oriented business has received City Council's determination that the Project is eligible to apply for fee waivers. Approval of the application and waiver of the fees shall not be deemed to be approval of anv aspect of the Proiect. Before construction, the applicant must ensure that the proiect is located in the correct zoninq district. B. DEVELOPMENT FEES Once the Application for NEZ Incentives has been approved and certified by the City, the following fees for services perFormed bv the Citv of Fort Worth for Projects in the NEZ are waived for new construction projects or rehabilitation projects that expend at least 30% of the Base Value of the property on Eligible Rehabilitation costs: 1. All building permit related fees (including Plans Review and Inspections) 2. Plat application fee (including concept plan, preliminary plat, final plat, short form replat) 3. Board of Adjustment application fee 4. Demolition fee 5. Structure moving fee 6. Community Facilities Agreement (CFA) application fee 7. Zoning application fee 8. Street and utility easement vacation application fee 9. Ordinance Inspection Fees 10. Consent/Encroachment Agreement Application Fees Other development related fees not specified above will be considered for approval by City Council on a case-by-case basis. C. IMPACT FEES 1. Single family and multi-family residential development projects in the NEZ. Automatic 100% waiver of water and wastewater impact fees will be applied. 2. Commercial, industrial, mixed-use, or community facility development projects in the N EZ. 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 impaci 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. Adopted October 4, 2005 12 V. RELEASE OF CITY LIENS A. ELIGIBLE RECIPIENTS/PROPERTIES 1. City Council shall determine on a case-by-case basis whether a Project that will contain or contains a liquor store or package store is eligible to apply for a fee waiver. 2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order to be considered "eligible" to apply for release of city liens under this Policy, the Woodhaven Community Development Corporation and the Woodhaven Neighborhood Association must have submitted a letter of support for the Project to the City of Fort Worth—however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer be required. 3. Projects to be constructed on property to be purchased under a contract for deed are not eligible for any release of City Liens. 4. In order for a property owneNdeveloper 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 fast five (5) years; c. must not have any City of Fort Worth liens filed against any other property owned by the applicant property owner/developer. "Liens" includes, but is not limited to, weed liens, demolition liens, board-up/open structure liens and paving liens; and d. of a Project that contains or will contain a liquor store, package store or a sexually oriented business has received City Council's determination the Project is eligible to apply for release of City liens. 5. In order for a Rehabilitation Project to qualify for a release of city liens, the owner/developer must spend Eligible Rehabilitation costs on the Property of at lease 30% of the Base Value of the Property. 6. Liens shall be released once the Project Improvements have been made to the property. 7. Any liens filed after the initial certification of the property shall not be released. B. WEED LIENS The following are eligible to apply for release of weed liens: 1. Single unit owners performing rehabilitation on their properties. 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. Adopted October 4, 2005 13 4. Developers constructing new multi-family, commercial, industrial, mixed-use or community facility development projects. C. DEMOLITION L1ENS Builders or developers developing or rehabilitating a property for a Project are eligible to apply for release of demolition liens for up to $30,000. Releases of demolition liens in excess of $30,000 are subject to City Council approval. D. BOARD-UP/OPEN STRUCTURE LIENS The following are eligible to apply for release of board-up/open structure liens: 1. Single unit owners perForming rehabilitation on their properties. 2. Builders or developers constructing new single family homes on vacant lots. 3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use, or community facility properties. 4. Developers constructing multi-family, commercial, industrial, mixed-use, or community facility projects. E. PAVING LIENS The following are eligible to apply for refease 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 II1. 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 Adopted-October 4, 2005 14 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. a. Development Department: development fee waivers. b. Water Department: impact fee waivers. c. 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. A. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS 1. Property Tax Abatement for Residential Properties and Multi-family Development Projects a. For a completed and certified application for no more than five years of tax abatement, with Council approval, the City Manager shall execute a tax abatement agreement with the applicant. b. For a completed and certified multi-family development project application for more than five years of tax abatement: (1) The Housing Department will evaluate a completed and certified application based on: (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation, etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women Owned Business Enterprises (M/WBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee. Based upon the outcome of the evaluation, Housing Department may present the application to the City Council's Economic Development Committee. Should the Housing Department present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may: (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (b) Request modifications to the application. Housing Department staff will discuss the suggested modifications with the applicant and then, if the Adopted October 4, 2005 15 requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Council The City Council retains sole authority to approve or deny any tax abatement agreement and is under no obligation to approve any tax abatement application or tax abatement agreement. The City of Fort Worth is under no obligation to provide tax abatement in any amount or value to any applicant. a. 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. 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 evaluaiion, 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 Devefopment 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 Adopted October 4, 2005 16 (b) Request modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made, resubmit the modified application to the Committee for consideration; or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to: (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Councif 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. 1. Release of City Liens For certi�ed 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. Adopted October 4, 2005 17 VIII. OTHER INCENTIVES A. Plan reviews of proposed development projects in the NEZ will be expedited by the Development Department. B. The City Council may add the following incentives to a NEZ in the Resolution adopting the NEZ: 1. Municipal sales tax refund 2. Homebuyers assistance 3. Gap financing 4. Land assembly 5. Conveyance of tax foreclosure properties 6. Infrastructure improvements 7. Support for Low Income Housing Tax Credit (LIHTC) applications 8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density bonus, parking exemption 9. Tax Increment Financing (TIF) 10. Public Improvement District (PID) 11. Tax-exempt bond financing 12. New Model Blocks 13. Loan guarantees 14. Equity investments 15. Other incentives that will effectuate the intent and purposes of NEZ. IX. Public Notification a. Subject to subsection (b), in order for an owner/developer to apply to receive any incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives, an owner/developer must meet with the following persons and organizations to discuss the Project: 1. the Council Member for the District the Project is located; and 2. the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located. b. Subsection (a) shall be satisfied upon: 1. the owner/developer meeting with the City Council Member for the District the Project is located and the neighborhood associations or community based organizations registered with the city in the NEZ the Project is located; or 2. meeting with the City Council Member for the District the Project is located and upon the owner/developer providing proof that the owner/developer attempted to meet with the neighborhood associations and the community based organizations registered with the city in the NEZ the Project is located and the associations or organizafiions failed to arrange a meeting with the owner/developer within two weeks of initial contact. c. The Public Notification Process listed in (a) and (b) above shall only apply to NEZs in which the City Council_ has not approved a NEZ Strategic Plan. Once the a NEZ Strategic Plan has been approved for the particular NEZ, no public notification shall be Adopted Octobex 4, 2005 18 required for NEZ Incentives so long as the Project meets the criteria outlined in the relevant NEZ Strategic Plan. X. Ineliqible Proiects 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 ;�;,.;� ;_.� ; � r; (r,,, ,� v "�f����,���`! ii�s�l�!r � Adopted October 4, 2005 19 ���f l��'� ����J �B� t�:��''�i�n U�i`� :,J � ATTACHMENT A REFUND OF DEVELOPMENT AND IMPACT FEES POLICY Purpose This refund policy is for the purpose of establishing the conditions under which the City may refund development and impact fees, normally waived through the Neighborhood Empowerment Zone (NEZ). Applicabiliiy 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 uag lified projects located in a designated NEZ. The impact fees include only water and sewer impact fees, up to $55,000 for commercial, industrial, mixed-use or community facilities projects. The development fees that can be waived through the NEZ include: 1. All building permit fees (including Plans Review and Inspections) 2. Plat application fee (including concept plan, preliminary plat, final plat, short 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 designaied NEZ; or Adopted October 4, 2005 20 c. The owner and/or developer has put funds in an escrow account with a City Department while awaiting a decision from the City Council about his/her project; or d. City Council authorizes a City Department to issue a refund to the owner/developer. Refund Charge A refund charge will be assessed to help defray administration cost associated with the processing of refund check. The charge shall be 20% of the amount of the refund. This charge will be automatically deducted from the total refund amount. Statute of Limitafiions 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 con#rol. 1n the event of any conflict befinreen this Adopted October 4, 2005 2 � policy and other policies or regulations adopted by the City Department issuing the refund, such department poficies or regulations shall control. The City reserves the right to deny any or all request for refunds. Adopted October 4, 2005 z2 Exhibit B Property Legal Description 1308 Montoya Lane, Block A, Lot 68, Sierra Vista Addition in the City of Fort Worth, Tarrant County, Texas, and as shown on the Plat recorded in Cabinet A, Slide No. 10693, Plat Records of Tarrant County, Texas. FORT �VORTH Eghibit "C" Application No. CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM PROJECT CERTIFICATION APPLICATION - FORM "C" FOR DEVELOPMENT PROJECTS I. APPLICATION CHECK LIST Please submit the following documentation: ❑ A completed application form ❑ A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and agents in 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 abatement 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 warraniy 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 and development budget or contractor's quote Met with the Councilmember and Neighborhood & other Organizations representing the NEZ as ouflined in the Public Notice requirement of the NEZ Policy and Guidelines revised Apri16, 2004. Copy of Incorporation Papers noting all principals, partners, and agents ❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Developrr►ent Corporation (For projects located in Woodhaven NEZ only) INCOMPLETE APPLICATIONS WII,L NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIItED DOCUMENTS SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITffiN 30 DAYS AFTER THE APPLICATION TS RECEIVED. YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUII,DING PERMITS ARE ISSUED FOR YOUR PROPERTY AND BEFORE ANY IlVIPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAK�S 30 TO 90 BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. II. APPLICANT / AGENT INFORMATION 1. Applicant: 3. Address: 4. Phone no.: 6. Email: 7. Agent (if any) 8. Address: 9. Phone no.: 11. Email: Sierra Vista, L.P. 3715 Camp Bowie Blvd. Street 817-763-0700 2. Contact Person: Deanna Boaz Fort Worth TX 76107 City State Zip 5. Fax No.: 817-763-9155 dboaz(�a,mallick�roun.com and michaelna,malliciceroup.com N/A Street City State Zip 10. Fax No.: If you need further information or clariiication, please contact Jamie Warner at (817) 392-7507 or Sarah Odle at (817) 392-7316. Revised Sentember 20. 2004 FORT WORTH PROJECT ELIGIBILITY Application No. 1. Please list down the addresses and legal descriptions of the project and other properties your organization owns in Fort Worth. Attach metes and bounds description if no address or legal description is available. Attach an eghibit showing the location of the project. Table 1 Pro er Ownershi Address Zip Project Location) Code Subdivision Name Lot No. Block No. See attached Final Plat Other properties owned in the City of Fort 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 boges below to indicate if: • there are taxes due; or • there are City liens; or • You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building Standards Comrnission's Order of Demolition where the property was demolished within the last five years. Table 2 Pro er Taxes and Ci Liens Address Property City Liens on Property Taxes Weed Board-up/Open Demolition Paving Order of Due Liens Stucture Liens Liens Liens Demolition N/A ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ ❑ (Please attach additional sheets of paper as needed.) Revicer� Sentemher 20_ 2(l�4 � FORT WORTH 3. Do you own other properties under other names? If Yes, please specify Vertex Asset Partners, L.P. Application No. X Yes ❑ No 4. Does the proposed project conform with City of Fort Worth Zoning? Tf no, what steps are being taken to insure compliance? 5. Project Type: X Single Family ❑ Multi- Family ❑ ❑ Commercial Industrial X Yes ❑ No ❑ ❑ Community Mixed-Use Facilities 6. If your project is a commercial, industrial, or mixed-use project, please describe the types of businesses that are being proposed: 7. Is this a new construction or rehab project? X New Construction ❑ Rehab 8. How much is the total development cost of your project? 232 SF residences starting at $80,000.00 9. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD) assessed value of the structure during the year rehabilitation occurs? ❑ Yes ❑ No * Eligible rehabilitation includes only physical improvements to real property. It does NOT include personal property such as fiuniture, 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? Minimum 1,200 —see square feet attached 11. For a single familv homeownership, mixed-use, or multi-familv development proiect, please fill out the number of residential units based on income range of owners or renters in the following table. Number of Residential U�nn�� ��� Income of Owners or Renters **AMFI: Area Median Family Income. Please see attachment for income and housing payment guidelines. 12. For a mnItifamilv nroiect to be qualified for tax abatement, at least 20% 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 communitv facilities proiect, indicate square footage of non- residential space. Commercial Industrial Community Facilities square feet square feet PLEASE ANSWER QUESTIONS N0.14 TO NO. 16 ONLY IF YOU ARE A,BATEMENT. ��, �'��''����,��, i��, RevisPA SPntemher 2(1 �nna i FORT WORTH Application No. 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). ***Capital Investment includes only real property improvements such as new facilities and sfructures, site improvements, facility expansion, and facility modernization. Capital Investment DOES NOT include land acquisirion costs and/or any existi.ng improvements, or personal properfy (such as machinery, equipment, and/or supplies or inventory). 15. For a commercial, industrial, communitv facilitv or mixed-use proiect, how many employees will the project generate? 16. For a mixed-use uroiect, please indicate the percentage of all uses in the project in the following table. Table 5 Percentage of Uses in a Mixed-Use Residential Office Entertainment Retail sales Se�tvice III. INCENTIVES 1. What incentives are you applying for? Municival Pronerty Tax Abatements Must provide Final Plat Cabinet and Slide for Tag Abatement X 5 years ❑ More than 5 years Cabinet A Slide 10693, 10694 Develonment Fee Waivers ❑ All building permit related fees (including Plans Review and Inspections) ■ ■ ■ ■ ■ ■ ■ Plat application fee (including concept plan, preliminary plat, final plat, short fornn replat) Board of Adjustment application fee Demolition fee Structure moving fee Community Facilities Agreement (CFA) application fee Zoning application fee Street and utility easement vacation application fee Imnact Fee Waivers ❑ Impact fee Release of Citv Liens ❑ Weed liens ❑ Board up/open structure liens Meter Size Revised September 20, 2004 4 No. of ineters? ❑ Paving liens ❑ Demolition liens FORT WORTH 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 NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. I understand that the approval of fee waivers and other incenrives shall not be deemed to be approval of any aspect of the project. I understand that I am responsible in obtaining required permits and inspections from the City and in ensuring the project is located in the correct zoning district. I understand that my application wi11 not be processed if it is incomplete. I agree to provide any additional information for determining eligibility as requested by the City. Deanna Boaz (TYPED NAME) (AUTHORIZED SI(�J?VATURE) Elecixonic version of this form is available by request. Please ca11817�392-7507 to request a copy. For more information on the NEZ Program, please visit our web site at www.fortworthgov.org/housing. For Office Use Only Application No. In which NEZ? Council District Application Completed Date (Received Date): Conform with Zoning? ❑ Yes [f No Type? ❑ SF ❑ Multifamily ❑ Commercial ❑ Industrial ❑ Community facilities ❑ Mixed-Use Construction completion date? ❑ Before NEZ ❑ After NEZ Ownership/Site Control ❑ Yes � No TAD Account No. Meet affordability test4 Rehab at or higher than 30%? Tax current on this property? City liens on this property? • Weed liens ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes ❑ No ❑ Yes • Board-up/open structure liens ❑ Yes • Demolition liens ❑ Yes • Paving liens ❑ Yes • Order of demolition ❑ Yes Certified? ❑ Yes ❑ No Certified by If not certified, reason Referred to: ❑ No ❑ No ❑ No ❑ No ❑ No Revised September 20, 2004 5 Consistent with the NEZ plan? ❑ Yes ❑ No Minimum Capital Investment? ❑ Yes ❑ No Meet mixed-use definition? ❑ Yes ❑ No Tax current on other properties? ❑ Yes ❑ No City liens on other properties? • Weed liens • Board-up/open structure liens • Demolihon liens • Paving liens • Order of demolition Date certification issued? ater ❑ Yes ❑ Yes ❑ Yes ❑ Yes ❑ Yes ❑ No ❑ No ❑ No ❑ No ❑ No Exhibit "D" Proiect Descriution Single Family Residence Minimum 1 c�ar 200 square foot garage behind the front building face of the residenfial structure Minimum 3 bedrooms Minimum 1 1/2 bathrooms A selection of floor plans Minimum 1200 square feet living space . Landscape requirements: Front and side yards will be sodded and all lots will have a minimum of 2 trees. �e-rv sECR�°���' . -. �� - �A�Z C()f�T��T NO. � ASSIGNMENT OF TAX ABATEMENT AGREEMENT This Assignment of Tax Abatement Agreement is made and entered into by and between HMH Lifestyles, L.P., ("Assignor") and Dorothy Bonner, ("Assignee") and the City of Fort Worth, ("City") RECITALS A. Sierra Vista L.P ("Sierra") and the City of Fort Worth, Texas (the "City") entered into that certain Tax Abatement Agreement ("Agreement") for Property Located 1308 Montoya Ln, Block A, Lot 68, Sierra Vista Addition ("Property") which is located in the Rolling Hills Neighborhood Empowerment Zone, such Agreement approved by the City Council of Fort Worth February 21, 2006, City Secretary Contract Number 34709 ("Agreement"): B. Pursuant to that certain Special Warranty Deed dated as of 10/14/2008 recorded under Tarrant County Deed Records, Sierra conveyed the Property to Assignor and Assignor acquired title to the Propei-ty which is the subject of the Agreement: C. Section 5 of the Agreement permits Sierra to assign all of its rights under the Agreement to HMH Lifestyles, L.P., without obtaining the prior consent of the City Council: D. Siena assigned the Agreement to HMH Lifestyles, L.P. Assignor; such Agreement is dated 10/14/2008 City Secretary Contract Number 38629. E. Pursuant to that certain Special Warranty Deed dated as of 2/02/2009, recorded under Tarrant County Deed Records, Assignor conveyed the Property to Dorothy Bonner and Assignee acquired title to the real property which is the subject of the Agreement. F. Section 5 of the Agreement permits Assignor to assign all of its rights under the Agreement to Assignee, without obtaining the prior consent of the City Council: AGREEMENT NOW THEREFORE, in consideration of the mutual terms and conditions herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acicnowledged, the parties hereby agree as follows: 1. Assi�ent. Assignor hereby ASSIGNS, TRANSFERS AND CONVEYS all rights, duties, obligations, title and interest under the Agreement to Assignee. .;i�;,�: ,. :. , +�t:i:�RD �#'�'� ������'A�tY ;�`�� �� �.��.�,�� TX 1 - - , � � _�_�� � 2. Acceptance. Assignee hereby accepts the Assignment granted herein, and assumes all of Assignor's rights, duties and obligations arising under the Agreement. 3. Effective Date. The effective date of this Assignment is 2/02/2009 ("Effective Date"). All rights, duties and obligations under the Agreement arising, accruing or relating to the period befare the Effective Date are allocated to Assignor and all rights, duties and obligations arising, accruing or relating to the period thereafter shall be allocated to Assignee. 4. Release and Sun•ender of Assi�or. Except as otherwise expressly set forth in this Assignment, Assignor will be discharged from any and all further obligations under the Agreement as of the Effective Date. Assignor must surrender the Property to the Assignee on or before 11:59 p. m. on the date prior to the Effective Date in its present condition. Assignor relinquishes any right to any improvements, fixtures or equipment on the Property. 5. Representations. Assignor represents, warrants and covenants with Assignee that as of the Effective Date, that Assignor is not in default under any of its obligations contained in the Agreement. 6. City of Fort Worth's Consent. City of Fort Worth hereby consents to this Assignment upon the terms and conditions set forth herein. Unless and until City of Fort Worth has executed this Assignment, this Assignment is of no effect the consent granted herein should not be construed as consent to any further assignment except as provided in the Agreement. The failure or delay of City of Fort Worth in seelcing to enforce any provisions of the Agreement or this Assignment should not be deemed a waiver of rights or remedies that City of Fort Worth may have, or a waiver of any subsequent breach of the terms and provisions therein or herein contained. 7. Notices. Any notice given by any party to another party hereto must be given in the manner required under the Agreement. The addresses set forth below supercede any addresses for notices set forth in the Agreement. CITY OF FORT WORTH: City of Fort Worth Housing and Economic Development Department NEZ Program 1000 Throcicmorton Fort Worth, Texas 76102 ASSIGNEE: Dorothy Bonner 1308 Montoya Ln Fort Worth, Texas 76119 � ASSIGNOR: HMH Lifestyles, L.P. 9001 Airport Freeway, Suite 400 North Richland Hills, TX 75180 8. Successors. Except as herein otherwise provided, this Assignment will be binding upon and inure to the benefit of the parties, and their respective heirs, executors, administrators, successors and assigns. 9. Counterparts. This Assignment may be executed in multiple counteiparts, each of which, once executed, will be an original and fully-binding on the parties so executing; and all such counterparts together constitute one and the same agreement. 10. Binding Offer. This Assignment will be not be binding until executed and delivered by all three pai•ties. IN WITNESS WHEREOF, the parties have executed this Assignment as of the date first above written. ASSIGNOR: HMH Lifestyles, L.P. .. -^-1 u�,' _ '7 Name: Title: � . � ASSIGNEE: Dorothy Bonner , �� ,� �� ;�.,L,( %� Name: orothy Bonner 3 � - . . . _ . _ . . ..-.. _ �A �/ g� � 'i�i�u'i�:Il�a��1� �'���.`�,riiiq\Y � �ITY SE��'�`iARY ? �T. W�"�`��, TX , +_ _ -- -- ----�--�- CITY OF FORT WORTH C�� Fernando Costa Assistant City Manager ATTEST: � City Secretary, ;v�C,�V� t \�1�h��►1� APPROVED AS TO FORM AND LEGALITY: �.;�, __. : �-1}1u� C�arlene Sand� Assistant City Attorney M& C: G21313 2� 2� �'�i��' AFFi�:�;�,�. ;��,;�;'=�,:��9 ��.lil( ���;:�:�:''r.�G�Y 4 �� ���,��:�'�b, �'�% STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Fort Worth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this �� day of �D �� (� , 2011. f �L��y otary Public in and for the State of Texas " � � � � � G /tl/ I-� -�/�?/l// �L�S Notary's Printed Name v � EVONIA Q�ANItLS :���'� " �<�: hil' COMhiISSION EXPIRES =, ;.,��.:� �,a�y �p, 2013 :,,: • �;: �-;�,; �•� ' �,�;�.,_��:..�::;�my».R�--.�=.: AFFE�I�;:_ -:.:�:-.;<����� CITY ���������"��iY �T.1M���'"��}��� TX STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared °� ',.,; � , r;-, .� `. i of HMH Lifestyles, L.P., a Texas limited partnership, known to me to be th person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of the HMH Lifestyles, L.P. a Texas limited pat•tnership. GIVEN LTNDER MY HAND AND SEAL OF OFFICE this �> day of ����; l � �% l , 2011. / -�-�'t,� � � � ) � ; ' i � , '` Notaryt �ublic in and for ,,,��,,, � the State of Texas �' `o`4pYPp9(` JILL BARFIELD � : 'c Notary Public, State of Texas � = �.�rc; My Commission Expires "�•+lfoF�E:.-'' March 25, 2012 '�"„������� STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Dorothy Bonner, 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 LTNDER MY HAND AND SEAL OF OFFICE this / day of ( ,f.�h.c �,i/ n �011... Notary`�ublic in and the State of Texas y�.�,��'� MY COMM 9S ON�Dxp�RFS �''�,p,,;E*'° November5, 2011 ;i���6v�k4�� ��G��a�►LI : �;ITY S�EC������ 6 � �'9'.lA101t�'�,'fX i - Electronicaily Recorded Official Public Records I'i � ---- - � - --- i '� : STNT/10811712f260/'T15..� ""'" • NOTTCE OF G'OZ+IFFDh'IT REMO'VE OR S'I'•RXKE iNSTRUMEN�' Ti�AT` FTLED FOR RLrC01� Li� Suzanne Henderson Tarrant County Texas 2009 Feb 11 11:07 AM Fee: $ 20.00 Submitter: LANDATA D209036464 2 Pages RTGFTI'S: IF YOLJ ARE A NATLJRAL PERSON, YOU MA�C ALL OF TAE FOLLOWINGSI�IFORMATION i'ROM ANY ETtS AN 1N`1'E12B5'I' IN REAL PROPERTY BEFORE IT TS ►LIG RECORDS: YOUR SOCIAL SECURITYNUMBEIt OR ,�' YO[TR T�RIVER'S T.,ICENSE NTJMBBR 'WARRANTY'D�1��.•'�"I�`H FiILS�' AND S�COIYD'�'END�12'S LIEN Date: February 2, 2009 � Grantor: HMH Lifestyles, L.P. - Grantor's Mail3ng Address (including,county)::90b1�Aiiport Freeway,Suite 400, North Rlchland iiills, Tarrant County, 'CX 761SO Granue: Dorothy Bonner, a singlc wpma"n':, '- Grrantea's Mailing Address (including coun�):1•5081,b7onmya Latte, Fort Worth, Tarrant County, TJf 76119 Considaration: TEN ANll NO/TDO DbLLARS and� other good and valnabJe ConsIdaration and the further consideration of u note dated of even date tEtpC'is•in th0 principal amount ofSeveaty Thousand Ona Hundred Seventy Six and No/1�Oth Aoila� ($70,176.00) and is exeented bj�.6raptee,p'pyable to tha o�er ofNTFN, Inc. The note is securcd in part by a vendor's lien re[ained in favor ofNTFNyTna ih this dosd and by a deed of trust of evan date herewith, &om Crrantee to C}eorga M_ Shunks, Ir., 17ustee. � And for [he furWer consiJeratioa of the eic�'cuti n atid del3very by Grantee oF a note dnted of even da[e tha[ is in the principal amount of Nmeteen lbousand Nioe F3lindred Ninety N�`e�,aod No/1001b Dollars ($19,999.00), puyable to Clty of Fort VJorth, Teacus, as therein provided, and��.p'roviding fqr�acceieratlon of mah�rify upon default nnd attorney feas, and further providing that should default be made in the paymenGof t�ia firs[ described note above, or in tmy of the covenanTs of the Deed of Trust securing the same, the ➢ndebtodnass,evidencsed by tha second described note shall, at the opdon of fha holder thereof, at once become due and paygble, spid nnte being sacwed by a subordinate Vendor's Lien heireby axpressly re[sineJ and reserved npon the property }i�reiri_desoflbed`and conveyad, and being ndditionally secured by n subordinate Deed of'I7ust of even date herewith to Vicki S.`C3anske; 'n'�utea. Property (including aay improvemants): Lot 68, iu.BYncK Q';'of STEXtRA VIS'I'A, an addition to the Cfty of Fort Worth, Tarrant County, Teaas, pecordiug to. tLe �tap''�oc Plat theraoF recorded in CabinatA, Slides 10693 8c 10694, Plat Recards, Tarrant Covnty,.'�cicas: '; •i . ��-r :,"' . •,.;= . ... Reservetions &om and Exeeprions to Convayanca and V✓�rretltyy'"This.,convcyance is given and accepted subject to pny and all restrictions, reservaHons, covenants, eonditions, ri$hts;oC w�y, easemenfs, municipal and other governmental zoning laws, re�tlatIons and ordtnauees, If any, of record3n said �opnty, affeattng Lhe herein descdbed property. ' .. „ i•.. . . Grantor, for the conslderation and subject to�die rese�vations from•a�t�1 erdeptipfis to conveyanca and warranty, grants, sells, and conveys to Grantee the proparty, together with all nnd singular'the.rights and appurtertances thereto in any wise helonging, to have and hold it to Orantee,'Graiifee's heirs, executar'a, �dmfnistrators, successors, or assigns forever. Grantor b3nds Grantor and drunror's heirs, executors, sdministrators, aitYl�suceLssOrs io warl'ant and forevar defend all and s3ngular tiie property to Grantee qnd.Grautee's heire, e�cecvwrs,�admiqiStratorsj_saccessors, and assigns, against every person wfiomsoaver lawfulty ulaiming or to �cla'un the sama o� �iY •part the�eof, axcept as to tha reservations ffou� and excaptions [o ccnveyenee and warranty. ' Thara is hereby reserved unto C3mntor, thcir he'us and assig�s ali of Crrantofs ,iriterGat i� ttie oil, gas and othar minerals in and under and that mwy be produccd &om the above property, by whatevei' tr�ethqd prqduced or extracted, together with the right of ingress end egress at al[ times for the-purposa of mining, driHing; exploring, opernting and developing said lands for oil, gas and other minorals and removing the same therefrom. - 17�e Vendor's X.iens and Superior 'Pitle herein refiined are hereby transfarred, assigned,,�ol NTFN, Tnc., it succassors and assigns. I S n�� Grantor and Grantee also ucknowledge the rete�t�omb'f;�` escond, suborc2inare and sepA�tC Grantor heraby transfers the same to CITY OF FQAT WORTFI, hareinafter called "SECOND-LIEN• which liea sccures, Gran[ee's certuiu other note dY even date to SECOND LIEN' BENEFTCIAR`Y $19,999.00, baing further considerution paid to Grantor, as mora particularly describad in deed of. herawhh to VIGKI S, QANSKE, TRUSTEE, Buh it 5s e�cpressly agreed and stIpulated Wa[ [ha vandor' tltle are retaineci in favor of the PIItST-LIEN BEIVENF[CIAItY and S5C0'ND-LIEN Bh'NBFTCIE against tha above desesibed properEy, premises and Improvaments, until each of the above respectivo according to its ternu, when lhis deed shall become absblute. � - Granfae assumas paymeat oE alI taxesfar current artd svbsequent ycars. Whan the contex[ requires, singular nouns'anA pr.onouns include tha plural. cOnveyedto �r's•�ien, nnd L°FICIqRY", v`wnount of of eVeii`dafe'::� F[1VIIi I,IP'EBTYLES, L.P. BY� ____v��a �� wis % Asslstant Secretary Its• ��y •,. ��; STAC ELL F �Y S�pry E](PIRES �`�.�',�i'' 7d, 2010 i.:iY .. .. STATE OF TEXAS § �J § COUNTY OF ��GG�r�1` § � �r. ;� � ;:, : _z�::.. ��.; n i�'instrum nt w clmowledged befoie. me on the � day of � 2009 by lp.fiu%� , the ���. of I•IMH Lifestyles, L.P., on alf of said limited parmership. j ` ),t' � >% � V Notary Public, State� exas -" . u� . After Recording, Retur•ri to;' ��+ �"''- STACEY 6Eu. � � Dorothy BonneY� ` � ��� ;�- MY COMMISSION EXPIRES ����[}�+, ... �� � � �'�;,i�;' PebNary 14, 2010 e..i ,. LJ .-, ,�� 3 F�i�`"a`T n ��' - ...� �G � � ��t,� # D,�.. ; � .:�°., � ��,.� . :e , ....... . � �'t . -- . �r _ :3 J .� � '• ., . ''ti,...� � ti':l , �! i i �f. . j , , A+ i _G I. . ''�Z: R Exhibit "A" 1. 1401 Gallina Trail 25 Lot E Block 2. 1402 Gallina Trail 75 Lot A Block 3. 1404 Gallina Trail 76 Lot A Block 4. 1405 Gallina Trail 24 Lot E Block 5. 1408 Gallina Trail 77 Lot A Block 6. 1409 Gallina Trail 23 Lot E Block 7. 1412 Gallina Trail 78 Lot A Block 8. 1413 Gallina Trail 22 Lot E Block 9. 1416 Gallina Trail 79 Lot A Block 10. 1417 Gallina Trail 21 Lot E Block 11. 1420 Gallina Trail 80 Lot A Block 12. 1421 Gallina Trail 20 Lot E Block 13. 1424 Gallina Trail 81 Lot A Block 14. 1425 Gallina Trail 19 Lot E Block 15. 1428 Gallina Trail 82 Lot A Block 16. 1429 Gallina Trail 18 Lot E Block 17. 1432 Gallina Trail 83 Lot A Block 18. 1433 Gallina Trail 17 Lot E Block 19. 1436 Gallina Trail 84 Lot A Block 20. 1437 Gallina Trail 16 Lot E Block 21. 1440 Gallina Trail 85 Lot A Block 22. 1441 Gallina Trail 15 Lot E Block 23. 1444 Gallina Trail 86 Lot A Block 24. 1445 Gallina Trail 14 Lot E Block 25. 1448 Gallina Trail 87 Lot A Block 26. 1449 Gallina Trail 13 Lot E Block 27. 1300 Monto a Lane 66 Lot A Block 28. 1304 Monto a Lane 67 Lot A Block 29. 1308 Monto a Lane 68 Lot A Block 30. 1400 Monto a Lane 1 Lot E Block 31. 1404 Monto a Lane 2 Lot E Block 32. 1408 Montoya Lane 3 Lot E Block 33. 1412 Montoya Lane 4 Lot E Block 34. 1416 Montoya Lane 5 Lot E Block 35. 1420 Monto a Lane 6 Lot E Block 36. 1424 Montoya Lane 7 Lot E Block 37. 1425 Monto a Lane 10 Lot F Block 38. 1428 Monto a Lane 8 Lot E Block 39. 1429 Monto a Lane 11 Lot F Block 40. 1432 Monto a Lane 9 Lot E Block 41. 1433 Monto a Lane 12 Lot F Block 42. 1436 Monto a Lane 10 Lot E Block 43. 1437 Monto a Lane 13 Lot F Block 44. 1440 Monto a Lane 11 Lot E Block 45. 1441 Monto a Lane 14 Lot F Block 46. 1444 Monto a Lane 12 Lot E Block 47. 1445 Monto a Lane 15 Lot F Block 48. 2900 Las Cruces Dr 1 Lot D Block 49. 2901 Las Cruces Dr 1 Lot F Block 50. 2905 Las Cruces Dr 2 Lot F Block 51. 2908 Las Cruces Dr 2 Lot D Block 52. 2909 Las Cruces Dr 3 Lot F Block 53. 2912 Las Cruces Dr 3 Lot D Block 54. 2913 Las Cruces Dr 4 Lot F Block 55. 2916 Las Cruces Dr 4 Lot D Block 56. 2917 Las Cruces Dr 5 Lot F Block 57. 2920 Las Cruces Dr 5 Lot D Block 58. 2921 Las Cruces Dr 6 Lot F Block 59. 2924 Las Cruces Dr 6 Lot D Block 60. 2925 Las Cruces Dr 7 Lot F Block 61. 2928 Las Cruces Dr 7 Lot D Block 62. 2929 Las Cruces Dr 8 Lot F Block 63. 2932 Las Cruces Dr 8 Lot D Block 64. 2933 Las Cruces Dr 9 Lot F Block 65. 2936 Las Cruces Dr 9 Lot D Block 66. 2940 Las Cruces Dr 10 Lot D Block 67. 2944 Las Cruces Dr 11 Lot D Block 68. 2900 Nara Vista Trail 22 Lot C Block 69. 2901 Nara Vista Trail 22 Lot D Block 70. 2905 Nara Vista Trail 21 Lot D Block 71. 2908 Nara Vista Trail 21 Lot C Block 72. 2909 Nara Vista Trail 20 Lot D Block 73. 2912 Nara Vista Trail 20 Lot C Block 74. 2913 Nara Vista Trail 19 Lot D Block 75. 2916 Nara Vista Trail 19 Lot C Block 76. 2917 Nara Vista Trail 18 Lot D Block 77. 2920 Nara Vista Trail 18 Lot C Block 78. 2921 Nara Vista Trail 17 Lot D Block 79. 2924 Nara Vista Trail 17 Lot C Block 80. 2925 Nara Vista Trail 16 Lot D Block 81. 2928 Nara Vista Trail 16 Lot C Block 82. 2929 Nara Vista Trail 15 Lot D Block 83. 2932 Nara Vista Trail 15 Lot C Block 84. 2933 Nara Vista Trail 14 Lot D Block 85. 2936 Nara Vista Trail 14 Lot C Block 86. 2937 Nara Vista Trail 13 Lot D Block 87. 2940 Nara Vista Trail 13 Lot C Block 88. 2941 Nara Vista Trail 12 Lot D Block 89. 3000 Nara Vista Trail 69 Lot A B�ock 90. 3004 Nara Vista Trail 70 Lot A Block 91. 3008 Nara Vista Trail 71 Lot A Block 92. 3012 Nara Vista Trail 72 Lot A Block 93. 3016 Nara Vista Trail 73 Lot A Block 94. 3020 Nara Vista Trail 74 Lot A Block 95. 1500 Chama Drive 12 Lot G Block 96. 1501 Chama Drive 22 Lot F Block 97. 1505 Chama Drive 23 Lot F Block 98. 1509 Chama Drive 24 Lot F Block 99. 1512 Chama Drive 11 Lot G Block 100. 1513 Chama Drive 25 Lot F Block 101. 1516 Chama Drive 10 Lot G Block 102. 1517 Chama Drive 26 Lot F Block 103. 1520 Chama Drive Lot G Block 104. 1521 Chama Drive 7 Lot F Block 105. 1524 Chama Drive Lot G Block 106. 1525 Chama Drive 8 Lot F Block 107. 1528 Chama Drive Lot G Block 108. 1529 Chama Drive 9 Lot F Block 109. 1532 Chama Drive Lot G Block 110. 1533 Chama Drive 0 Lot F Block 111. 1536 Chama Drive Lot G Block 112. 1540 Chama Drive Lot F Block 113. 1541 Chama Drive 1 Lot F Block 114. 1544 Chama Drive Lot G Block 115. 1548 Chama Drive Lot G Block 116. 1552 Chama Drive 1 Lot G Block 117. 2900 Pima Lane 0 Lot A Block 118. 2901 Pima Lane 1 Lot C Block 119. 2904 Pima Lane 1 Lot A Block 120. 2908 Pima Lane 2 Lot A Block 121. 2909 Pima Lane Lot C Block 122. 2912 Pima Lane 3 Lot A Block 123. 2913 Pima Lane Lot C Block 124. 2916 Pima Lane 4 Lot A Block 125. 2917 Pima Lane Lot C Block 126. 2920 Pima Lane 5 Lot A Block 127. 2921 Pima Lane Lot C Block 128. 2924 Pima Lane 6 Lot A Block 129. 2925 Pima Lane Lot C Block 130. 2928 Pima Lane 7 Lot A Block 131. 2929 Pima Lane Lot C Block 132. 2932 Pima Lane 8 Lot A Block 133. 2933 Pima Lane Lot C Block 134. 2936 Pima Lane 9 Lot A Block 135. 2937 Pima Lane Lot C Block 136. 2940 Pima Lane 0 Lot A Block 137. 2941 Pima Lane 10 Lot C Block 138. 2944 Pima Lane 61 Lot A Block 139. 2945 Pima Lane 11 Lot C Block 140. 2948 Pima Lane 62 Lot A Block 141. 2949 Pima Lane 12 Lot C Block 142. 2952 Pima Lane 63 Lot A Block 143. 2956 Pima Lane 64 Lot A Block 144. 2960 Pima Lane 65 Lot A Block 145. 1300 Glen Garden Dr 1 Lot A Block 146. 1304 Glen Garden Dr 2 Lot A Block 147. 1308 Glen Garden Dr 3 Lot A Block 148. 1312 Glen Garden Dr 4 Lot A Block 149. 1316 Glen Garden Dr 5 Lot A Block 150. 1320 Glen Garden Dr 6 Lot A Block 151. 1324 Glen Garden Dr 7 Lot A Block 152. 1328 Glen Garden Dr 8 Lot A Block 153. 1332 Glen Garden Dr 9 Lot A Block 154. 1336 Glen Garden Dr 10 Lot A Block 155. 1340 Glen Garden Dr 11Lot A Block 156. 1344 Glen Garden Dr 12 Lot A Block 157. 1348 Glen Garden Dr 13 Lot A Block 158. 1400 Glen Garden Dr 14 Lot A Block 159. 1404 Glen Garden Dr 15 Lot A Block 160. 1408 Glen Garden Dr 16 Lot A Block 161. 1412 Glen Garden Dr 17 Lot A Block 162. 1416 Glen Garden Dr 18 Lot A Block 163. 1420 Glen Garden Dr 19 Lot A Block 164. 1424 Glen Garden Dr 20 Lot A Block 165. 1428 Glen Garden Dr 21 Lot A Block 166. 1432 Glen Garden Dr 22 Lot A Block 167. 1436 Glen Garden Dr 23 Lot A Block 168. 1500 Glen Garden Dr 8 Lot B Block 169. 1504 Glen Garden Dr 7 Lot B Block 170. 1508 Glen Garden Dr 6 Lot B Block 171. 1512 Glen Garden Dr 5 Lot B Block 172. 1516 Glen Garden Dr 4 Lot B Block 173. 1520 Glen Garden Dr 3 Lot B Block 174. 1524 Glen Garden Dr 2 Lot B Block 175. 1528 Glen Garden Dr 1 Lot B Block 176. 3000 Yuma Drive 21 Lot F Block 177. 3004Yuma Drive 20 Lot F Block 178. 3008 Yuma Drive 19 Lot F Block 179. 3012 Yuma Drive 18 Lot F Block 180. 3016 Yuma Drive 17 Lot F Block 181. 3020 Yuma Drive 16 Lot F Block 182. 1301 Sierra Estate Tr 49 Lot A Block 183. 1305 Sierra Estate Tr 48 Lot A Block 184. 1309 Sierra Estate Tr 47 Lot A Block 185. 1313 Sierral Estate Tr 46 Lot A Block 186. 1317 Sierra Estate Tr 45 Lot A Block 187. 1321 Sierra Estate Tr 44 Lot A Block 188. 1325 Sierra Estate Tr 43 Lot A Block 189. 1329 Sierra Estate Tr 42 Lot A Block 190. 1333 Sierra Estate Tr 41 Lot A Block 191. 1337 Sierra Estate Tr 40 Lot A Block 192. 1341 Sierra Estate Tr 39 Lot A Block 193. 1345 Sierra Estate Tr 38 Lot A Block 194. 1349 Sierra Estate Tr 37 Lot A Block 195. 1353 Sierral Estate Tr 36 Lot A Block 196. 1357 Sierra Estate Tr 35 Lot A Block 197. 1401 Sierra Estate Tr 34 Lot A Block 198. 1405 Sierra Estate Tr 33 Lot A Block 199. 1409 Sierra Estate Tr 32 Lot A Block 200. 1413 Sierra Estate Tr 31 Lot A Block 201. 1416 Sierra Estate Tr 46 Lot F Block 202. 1417 Sierra Estate Tr 30 Lot A Block 203. 1420 Sierra Estate Tr 45 Lot F Block 204. 1421 Sierra Estate Tr 29 Lot A Block 205. 1424 Sierra Estate Tr 44 Lot F Block 206. 1425 Sierra Estate Tr 28 Lot A Block 207. 1428 Sierra Estate Tr 43 Lot F Block 208. 1429 Sierra Estate Tr 27 Lot A Block 209. 1432 Sierra Estate Tr 42 Lot F Block 210. 1433 Sierra Estate Tr 26 Lot A Block 211. 1436 Sierra Estate Tr 41 Lot F Block 212. 1437 Sierra Estate Tr 25 Lot A Block 213. 1440 Sierra Estate Tr 40 Lot F Block 214. 1441 Sierra Estate Tr 24 Lot A Block 215. 1444 Sierra Estate Tr 39 Lot F Block 216. 1500 Sierra Estate Tr 38 Lot F Block 217. 1501 Sierra Estate Tr 9 Lot B Block 218. 1504 Sierra Estate Tr 37 Lot F Block 219. 1508 Sierra Estate Tr 36 Lot F Block 220. 1509 Sierra Estate Tr 10 Lot B Block 221. 1512 Sierra Estate Tr 35 Lot F Block 222. 1513 Sierra Estate Tr 11 Lot B Block 223. 1516 Sierra Estate Tr 34 Lot F Block 224. 1517 Sierra Estate Tr 12 Lot B Block 225. 1520 Sierra Estate Tr 33 Lot F Block 226. 1521 Sierra Estate Tr 13 Lot B Block 227. 1524 Sierra Estate Tr 32 Lot F Block 228. 1525 Sierra Estate Tr 14 Lot B Block 229. 1529 Sierra Estate Tr 15Lot B Block 230. 1533 Sierra Estate Tr 16 Lot B Block 231. 1537 Sierra Estate Tr 17 Lot B Block 232. 1541 Sierra Estate Tr 18 Lot B Block 233. 1545 Sierra Estate Tr 19 Lot B Block 234. 1549 Sierra Estate Tr 20 Lot B Block 235. 1553 Sierra Estate Tr 21 Lot B Block M&C R�view CITY C�lJNCIL AGENDA DATE: CODE: COUNCIL ACTION: Approved on 2/21/2006 2/21/2006 REFERENCE NO.: C-21313 C TYPE: NON- CONSENT LOG NAME: PUBLIC HEARING: Page 1 of 3 Official site of the City of Fort Worth, Texas FflRT��'ORTf� _�``"'�� 05SIERRAVISTA NO SUBJECT: Approval of a Tax Abatement Agreement with Sierra Vista, L.P., a Texas Limited Partnership, and HMH Lifestyles, L.P., a Texas Limited Partnership, Located in the Rolling Hills Neighborhood Empowerment Zone RECOMMENDATION: It is recommended that the City Council: 1. Approve a five-year Municipal Property Tax Abatement for 235 properties listed in Exhibit "A" owned by Sierra Vista, L.P., and located in the Rolling Hills Neighborhood Empowerment Zone (NEZ); 2. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with Sierra Vista, L.P. and HMH Lifestyles, L.P., are true and correct; and 3. Authorize the City Manager to enter into a Tax Abatement Agreement with Sierra Vista, L.P. and HMH Lifestyles, L.P. for the properties listed in Exhibit "A" in accordance with the NEZ Tax Abatement Policy and Basic Incentives. DISCUSSION: Sierra Vista, L.P. and HMH Lifestyles, L.P., are the owners/developers of the 235 properties listed in Exhibit "A". This real property is located in the Rolling Hills NEZ and Neighborhood Empowerment Reinvestment Zone (NERZ No. 8). Sierra Vista, L.P. and HMH Lifestyles, L.P. have applied for a five-year municipal property tax abatement under the NEZ Tax Abatement Policy and Basic Incentives (M&C G-14947), as amended. The NEZ Program offers a five-year municipal property tax abatement on the increased value of improvements to the qualified owner of any new construction within a NEZ. The Housing Department has reviewed the application and certified that the property meets the eligibility criteria to receive NEZ municipal property tax abatement. Sierra Vista, L.P. and HMH Lifestyles, L.P. will invest a minimum of $20,000,000 to construct two hundred and thirty two single-family homes in the Rolling Hills NEZ. In order for HMH Lifestyles, L.P. or any other developer or builder approved by the Housing Department Director to qualify for the tax abatement, HMH Lifestyles, L.P. or any other developer or builder approved by the Housing Department Director must construct homes with a minimum of 1200 square feet of living space with at least three bedrooms and one and one-half baths which will appraise for a minimum of $80,000.00. http://apps. cfwnet. org/council�acket/mc_review. asp?ID=53 3 5&councildate=2/21 /2006 03/27/2009 M&C Review A more detailed description of the homes to b� constructed is attached as Exhibit "B". The Agreement is attached as Exhibit "C". Page 2 of 3 Upon execution of the tax abatement agreement, the total assessed value of each home used for calculating municipal property tax will be frozen for a five-year period, starting on the date the home is sold to a homebuyer to be used as a primary residence, at the pre-improvement value as defined by the Tarrant Appraisal District (TAD) on January 1, 2006, as follows: Pre-improvement TAD Value of Improvements Pre-improvement Estimated Value of Land Total Pre-improvement Estimated Value � 2025.00 $2025.00 The municipal property tax on the improved value is estimated at $484.00 per house, per year, for a total of $ 2,420.00 over the five-year period for each house. However, this estimate may be different from the actual tax abatement value, which will be calculated based on the TAD appraised value of the property. The tax abatement agreement provides that the agreement may be assigned without subsequent City Council approval to Sierra Vista, L.P., HMH Lifestyles, L.P., or another builder or developer's first mortgage, or to a homebuyer who will use the required improvements as his/her primary residence, or to the homeowner's mortgagee. All other assignments must be approved by City Council. The agreement also provides that the failure of the owner to send the City notification of the sale of the required improvements and the executed assignment of the agreement with the new owner within 30 days of the transfer of ownership of the required improvements shall result in the automatic termination of the Agreement. This property is located in Council District 8. FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that this action will have no material effect on City funds. TO Fund/Account/Centers Submitted for City Manager's Office bv: Originating Department Head: Additional Information Contact: FROM Fund/Account/Centers Dale Fisseler (6266) Jerome Walker (7537) Sarah Odle (7316) http://apps.cfwnet.org/council�acket/mc_review.asp?ID=5335&councildate=2/21/2006 03/27/2009 M&C Review ATTACHMENTS Final TA Agreement for M&C.doc Page 3 of 3 http://apps.cfwnet.org/council�acket/mc_review.asp?ID=5335&councildate=2/21/2006 03/27/2009