HomeMy WebLinkAboutContract 54040 ji Ix1ia9. V ,
FORT WORTH,
RECENED
JUN 17 2020
mOFFpRT"Iff, NEIGHBORHOOD EMPOWERMENT ZONE
cttyt RETay TAX ABATEMENT AGREEMENT
New construction sale to single-family-owner
217 Paradise Street
This TAX ABATEMENT AGREEMENT ("Agreement")is entered into by and between the CITY
OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of
the State of Texas and acting by and through David Cooke, its duly authorized City Manager, in accordance
with the authority granted under Chapter 378 of the Texas Local Government Code, and Housing Channel,
("Owner") owners of property located at 217 Paradise Street, Lot 5, Block 27, Riverside Addition, an
addition to the City of Fort Worth, Tarrant County, Texas, according to the Map or Plat thereof recorded
in/under Volume 63, Page 97,Map/Plat Records, Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council")hereby finds and the City and Owner
hereby agree that the following statements are true and correct and constitute the basis upon which the City
and Owner have entered into this Agreement:
A. On January 29, 2019 the Fort Worth City Council adopted Ordinance No. 23552 (the
"Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.111 through 6R" City
of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing "Designation of the
Neighborhood Empowerment Zone Areas One through Six"(the"NEZ").
B. Owner owns certain real property located entirely within the Zone and that is more particularly
described in Exhibit"I", attached hereto and hereby made a part of this Agreement for all purposes (the
"Premises").
C. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of
this Agreement, on the Premises (the"Project").
D. On June 4, 2019, Owner submitted an application for tax abatement to the City concerning
the Premises (the "Application"), attached hereto as Exhibit"2"and hereby made a part of this Agreement
for all purposes.
E. The contemplated use of the Premises, the Required Improvements and the terms of this
Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its
creation and are in compliance with the NEZ Incentives,the Ordinance and other applicable laws,ordinances,
rules and regulations.
F. Written notice that the City intends to enter into this Agreement, has been furnished in the
manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in
which the Premises is located.
Page 1
ETX,
NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
M&C C-29182 Annroved:June 25.2019
NOW, THEREFORE,the City and Owner, for and in consideration of the terms and conditions set
forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of a single-family residence, of approximately 1,436 square feet in size and
built to the specifications listed in Exhibit "311, (collectively the "Required Improvements"). Minor
variations and more substantial variations if approved in writing by both parties to this Agreement
before construction is undertaken in the Required Improvements from the description provided in
the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1,
provided that the conditions in the first sentence of this Section 1.1 are met and the Required
Improvements are used for the purposes and in the manner described in Section 1.3.
1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two years from the
date of Council approval.The abatement will automatically terminate two years after Council approval
if a building permit has not been pulled and a foundation has not been poured,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 as determined by the City of Fort Worth in its sole discretion,which shall
not be unreasonably withheld,including,without limitation,delays caused by adverse weather,delays
in receipt of any required permits or approvals from any governmental authority, acts of God, or fires.
Force majeure shall not include construction delays caused due to purely financial matters, such as,
without limitation, delays in the obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the Premises
shall be sold so that it is continuously used as the primary residence of the Home Buyer in
accordance with the NEZ Incentives. In addition, Owner covenants that throughout the Term, the
Required Improvements shall be maintained for the purposes set forth in this Agreement.
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property
tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Improvements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from other taxing
entities.
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NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
M&C C-29182 Annroved:June 25.2019
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 due to the Required Improvements, over its value as determined
by Tarrant Appraisal District in June 2019, and this amount is $0.00.
If the square footage requirement of the Required Improvements are less than as provided in
Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this
Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the Required
Improvements up to a maximum of$203,964.00 and shall apply only to taxes on the increase in
value of the Premises due to construction of the Required Improvements. In other words, by way of
example only, if the increase in value of the Required Improvements over its value in June 2019, in
a given year is $205,000.00, Owner's Abatement for that tax year shall be capped and calculated as
if the appraised value of the Required Improvements for that year had only been $203,964.00. The
Abatement shall not apply to taxes on the land,nor shall the abatement apply to mineral interests.
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 the Required Improvement is completed and 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(5t') anniversary of the Beginning Date.
2.4 Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments of the
Premises and/or improvements thereon.
2.5. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Application fee of$100.00. The
application fee shall not be credited or refunded to Owner or its assigns for any reason.
3. RECORDS,AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any time during
normal office hours throughout the Term and the year following the Term and following reasonable
notice to Owner, the City shall have and Owner shall provide access to the Premises in order for the
City to inspect the Premises and evaluate the Required Improvements to ensure compliance with the
terms and conditions of this Agreement. Owner shall cooperate fully with the City during any such
inspection and/or evaluation.
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NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
M&C C-291 R2 Annroved-June 25.2019
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable term of
this Agreement. The City shall have the right to audit at the City's expense the Required Improvement
with respects to the specifications listed in Exhibit "3". Owner must provide documentation that
Owner is using the Required Improvements as its Primary residence (collectively, the "Records") at
any time during the Compliance Auditing Term in order to determine compliance with this
Agreement. Owner shall make all applicable Records available to the City on the Premises or at
another location in the City following reasonable advance notice by the City and shall otherwise
cooperate fully with the City during any audit.
3.3 Provision of Information.
On or before March 1 following the end of every year during the Compliance Auditing Term
and at any other time if requested by the City, Owner shall provide information and documentation
for the previous year that addresses Owner's compliance with each of the terms and conditions of this
Agreement for that calendar year.
Failure to provide all information within the control of Owner required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term,the City shall make
a decision and rule on the actual annual percentage of Abatement available to Owner for the following
year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the
Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the
terms and conditions of this Agreement during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i) Owner
fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real property
taxes with respect to the Premises or the Required Improvements, 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; (iii) OWNER DOES NOT USE THE PREMISES AS
PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv) OWNER DOES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCES OF
THE CITY OF FORT WORTH(collectively, each an "Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall
have sixty(60) calendar days from the date of receipt of this written notice to fully cure or have cured
the Event of Default. If Owner reasonably believes that Owner will require additional time to cure
the Event of Default, Owner shall promptly notify the City in writing, in which case (i) after advising
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NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
M&C C-29192 Annroved:June 25.2019
the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have ninety
(90) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably
believes that Owner will require more than ninety(90)days to cure the Event of Default,after advising
the City Council in an open meeting of Owner's efforts and intent to cure,such additional time,if any,
as may be offered by the City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default which is defined in Section 4.1 has not been cured within the time frame
specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement
immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the
City's economic development and redevelopment efforts on the Premises and in the vicinity of the
Premises; (ii) require unplanned and expensive additional administrative oversight and involvement
by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages
therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon
termination of this Agreement for any Event of Default, Owner shall pay the City, as liquidated
damages; all taxes that were abated in accordance with this Agreement for each year when an Event
of Default existed and which otherwise would have been paid to the City in the absence of this
Agreement. The City and Owner agree that this amount is a reasonable approximation of actual
damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is
intended to provide the City with compensation for actual damages and is not a penalty. This amount
may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal
by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due,
owing and paid to the City within sixty (60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within sixty(60)
days following the effective date of termination of this Agreement, Owner shall also be liable for all
penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as
determined by the Code at the time of the payment of such penalties and interest (currently, Section
33.01 of the Code).
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Premises or the
anticipated Required Improvements are no longer appropriate or feasible,or that a higher or better use
is preferable, the City and Owner may terminate this Agreement in a written format that is signed by
both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective
date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously
abated; and(iii)neither party shall have any further rights or obligations hereunder.
4.5 Sexually oriented business &Liquor Stores or Package Stores.
a. Owner understands and agrees that the City has the right to terminate this agreement if
the Required Improvements 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 Required Improvements contains or will contain a
liquor store or package store.
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NE Tax Abatement Agreement-Housing Channel
217 Paradise Street
Mg>C'.C'.-291 R2 Annrnverl.Tune 25.2019
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required
Improvements as its Primary residence or the homeowner's mortgagee which City Council hereby agrees to,
this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or Required
Improvements without the prior consent of the City Council, which consent shall not be unreasonably
withheld provided that(i)the City Council finds that the proposed assignee is financially capable of meeting
the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all
terns and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any
of its rights under this Agreement. Any attempted assignment without the City Council's prior consent shall
constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10)
calendar days of receipt of written notice from the City to Owner.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its Primary residence or the homeowner's mortgagee, Owner shall have no further
obligations or duties under this Agreement. In addition, upon assignment to any other entity with the
written consent of City Council,Owner shall have no further duty or obligation under this Agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT OF
A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE
REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS
AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF
OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC
TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT
MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the following, or
such other party or address as either party designates in writing,by certified mail,postage prepaid,or by hand
delivery:
City: Owner:
City of Fort Worth Housing Channel
Attn: City Manager 4200 S. Freeway, Suite 307
200 Texas Street Fort Worth, Texas 76115
Fort Worth, Texas 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, Texas 76102
Page 6
NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
M9,C`C'.-791 R2 Annrnved- Time 95 2(119
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This Agreement is
subject to the rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the City Planning or Zoning
Commission or any member of the governing body of any taxing units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City ordinances or
regulations, and this Agreement, such ordinances or regulations shall control. In the event of any
conflict between the body of this Agreement and Exhibit"3",the body of this Agreement shall control.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for complete
or partial exemption from ad valorem taxes as a result of existing law or future legislation. This
Agreement shall not be construed as evidence that such exemptions do not apply to the Premises
and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and Council
Communication No. C-29182 on June 25, 2019, which, among other things, authorized the City
Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long as the
certificate is requested in connection with a bona fide business purpose. The certificate, if requested,
will be addressed to the Owner, and shall include, but not necessarily be limited to, statements that
this Agreement is in full force and effect without default (or if an Event of Default exists, the nature
of the Event of Default and curative action taken and/or necessary to effect a cure),the remaining term
of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters
reasonably requested by the party or parties to receive the certificates.
7.7. Owner Standin>7.
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.
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NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
MRrC..C..-291 R2 Annrnved•hme 95.2019
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules, regulations or policies of the City. Venue for any action under this
Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is
performable in Tarrant County,Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid,illegal or unenforceable,the validity,
legality and enforceability of the remaining provisions shall not in any way be affected or impaired.
7.10 HeadinLs Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein by reference, contains the entire understanding and agreement between the City and Owner,
their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and 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.
[SIGNATURES FOLLOW ON NEXT PAGE]
Page 8
NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
Mk..0 C-291 R2 Annroved-June 25.2019
CITY OF FORT WORTH: OWNER:
By: By:
Fernando Costa D ess,D or
Assistant City Manager
ATTEST:' �; pa
By:
Mary Kays : '
City Secretary ,,;._,
APPROVED AS TO FORM AND LEGALITY:
B4y:
,�
Melinda Ramos
Sr. Assistant City Attorney
M&C: C-29182
Date Approved: June 25, 2019
Page 9
NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
M&C C-291 R2 Annroved-June 25.2019
STATE OF TEXAS §
COUNTY OFARRANT §
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
QiII,r,A- , 2010
101M A . /JM;A
• MARIA S,SANCMEZ
Notiry Public in and for My Notary ID#2256490
the State of Texas Expires December 19,2021
STATE OF TEXAS §
COUNTY OFARRANT §
BEFORE ME,the undersigned authority, on this day personally appeared Donna VanNess,
Director of Housing Channel, known to me to be the person whose name is subscribed to the
foregoing instrument, and acknowledged to me that he executed the same for the purposes and
consideration therein expressed, in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
) 2019.
CONSTANCE DENISE WILLIAMS
Notary Public in and for
the State of Texas m. � My Notary ID#130835514
Expires September 23,2020
UFFK(;�'�L L«i � ti 'r
i
Page 10 �
NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
MRK C..-791 R? Annrnved- nine 7S 2r119
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description
Page 11
NEZ Tax Abatement Agreement-Housing Channel
217 Paradise Street
MRr.C:G291 R2 Annmved-June 25.2019
Exhibit 1
Property Description
217 Paradise Street, Lot 5,Block 27, Riverside Addition, an addition to the City of Fort Worth,
Tarrant County, Texas, according to the Map or Plat thereof recorded in/under Volume 63, Page
97, Map/Plat Records, Tarrant County, Texas.
Exhibit 2
FORTIVORTs1_
City of Fort Worth
Neighborhood Empowerment Zone (NEZ) Application for Incentives
ila
Property
Owner/Developer Housing Channel
Last First IV.L
Address: 4200 S Freeway, Ste 307 Fort Worth TX 76115
Street Address City State zip
Owner Phone: 817-924-5091 Owner Email:
Contact: VanNess Donna
(If different) ,Last First 11/LL
Phone: 817-924-5091 Email: donna@housingchannel.org
.44
NEZ certifications are project and owner specific.Please describe your project:
New Single Family Residential Construction
Project Type
x❑ ❑ ❑ ❑ ❑ ❑
Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
Project Address: 217 PARADISE ST
Street Address
Legal Description: 5 27 RIVERSIDE ADDITION
Lot Block Addition
YES NO YES NO
New Construction/Addition: 0 ❑ Remodel/Rehab: ❑ LE I
Total New Sq.Ft. 2125 Incl.garage Total Development Cost: 147,266.00
YES NO
Will the NEZ certified property be occupied by the property owner? ❑
If you selected No,please specify if this property will be Sold or used as a Rental: Will be Sold
If your project is a Mixed Use project,please list all specific uses that are being proposed:
YES NO
Do you wish to apply for a Municipal Property Tax abatement for this project? Q ❑
If the above answer is yes,please contact the City of Fort Worth Neighborhood Services Department at
(817)392-7316 or visit ltttp:Hfortworthtexas.govineiehborhoods NFZ/for additional information. All tax abatements
must be presented to the Fort Worth City Council for a vote.Tax Abatements are processed after NEZ certification.
YES NO
Do you wish to apply for a release of certain City liens? x❑ R
Weed,Paving, Demolition and Board Up/Open Structure liens may be released
Revised 211119 VR-80
0RT NOIRTfi.
City of Fort North
Neighborhood Empowerment Zone (NEZ) Application for Incentives
YES NO
Does the specified project conform to City of Fort Worth Zoning Regulations? ❑ ❑
YES NO
Will a Zoning Change application be necessary for this project? ❑ ❑
Current Zoning: Proposed Zoning:
Signature of Zoning Staff: Date:
PLEASE INITIAL NEXT TO EACH STATEMENT
I understand that my application will not be processed if it is incomplete.I agree to provide any additional
i ormation for determining eligibility as requested by the City.If the additional information is not submitted within
30 days,the application will be denied and application fees paid will not be reimbursed.
1 hereby certify that the information provided is true and accurate to the best of my knowledge.
I hereby acknowledge that I have read the NEZ Incentives,which governs the granting of tax abatements,
e waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any
a t of the project. 1 understand that I am responsible for obtaining required permits and inspections from the
i and in ensuring the project is located in the correct zoning district.
I understand that if there are taxes due or liens against any property I own in the City of Fort Worth I may
of be eligible for NEZ incentives.
I understand that I must pay all associated fees at the time of project application and/or permit submittal if
I i to submit permits prior to determination of NEZ eligibility.This includes setting up an escrow account with
e City. I understand that some permits may not be issued while NEZ eligibility is being established. Example:
Applications that are requesting Tax Abatement
Donna VanNess 7' 5/29/19
Printed Name of Property ig ature roperty Date
Owner/Developer Owner/Developer
Revised 2J1119 VR-SO
PORTWORTH
City of Fort Worth
Neighborhood Empowerment Zone (NEZ)Application for Incentives
Please submit your completed application in person to:
City of Fort Worth Planning and Development Department
200 Texas Street,Fort Worth,Texas 76102
To apply online: https://accela,forhvorthtexas.gov/citizenaccess/
For more information on the NEZ Program Incentives,please visit our web site
at http:/!fortwortlntexas.gov/iieighborhoods:N EZ./or contact our office at(817)392-2222
or nez.devnezprograjn@fortworthtexas.gov
For more information on Tax Abatements,see the above website or contact the
Neighborhood Services Department at(817)392-7316.
YES NO
Project certified for NEZ Basic Incentives: ❑ ❑ Certified By/Date:
If not certified, reason for denial:
Revised 211119 VRSO
Exhibit 3
Proiect Description
New Construction of a single family residence
• 1,436 square feet living space
• One story
• 3 bedroom, 2 bath
• Covered Patio
• Living room
• Kitchen/Dining Room
• Attached 2 Car Garage
• Hardy Board Siding Exterior
M&C Review
Official
CITY COUNCIL AGENDA FORTTWORTI.1
COUNCIL ACTION: Approved on 6/25/2019
DATE: 6/25/2019 REFERENCE C-29182 LOG NAME: 19NEZHOUSINGCHANNEL
NO..
CODE: C TYPE: NOW PUBLIC NO
CONSENT HEARING:
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with the Housing
Channel, for the Construction of five Low-Income Single Family Homes in the United
Riverside Neighborhood and Neighborhood Empowerment Zone Area Four (COUNCIL
DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement with Housing Channel, for the construction of five low-income single family homes
in the United Riverside Neighborhood and Neighborhood Empowerment Zone Area Four, in
accordance with the Neighborhood Empowerment Zone Program Basic Incentives and Tax
Abatement Policy.
DISCUSSION:
On June 4, 2019, (M&C C-29138) the City Council authorized the change in use and expenditure of
additional HOME Investment Partnerships Program grant funds in the amount of$95,356.00 for a
total contract amount of$402,500.00 in the form of a subordinate forgivable loan to Housing
Channel, a certified Community Housing Developer Organization, for the development of up to five
houses for the Riverside Single Family Infill Development located in the United Riverside
Neighborhood and in Neighborhood Empowerment Zone (NEZ) Area Four. Housing Channel
will construct five low-income single family homes, each with an approximate value of$153,400.00
and 1,500 square feet. See attached. The homes will be sold to low-income buyers as a primary
residence.
The Neighborhood Services Department reviewed the application and certified that the property
owner and Project met the eligibility criteria to receive a Neighborhood Empowerment Zone (NEZ)
Municipal Property Tax Abatement. The NEZ Basic Incentives includes a five-year Municipal
Property Tax Abatement on the increased value of improvements to the qualified owner of any new
construction or rehabilitation within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements will be subject to
the tax abatement for a period of five years starting January 2020 or thereafter depending on the
completion of each home.
The municipal property tax on the improved value of each home after construction is estimated in
the amount of$1,204.19 per year for a total amount of$6,020.95 per home over the five-year
period. However, this estimate may differ from the actual tax abatement value, which will be
calculated based on the Tarrant Appraisal District appraised value of each property.
In the event of a sale of the properties, the NEZ Tax Abatement Agreement may be assigned to a
file:///chisilon/...OZone/Tax%20Abatement%20Agreements/NEZ%20Area%204/Housing%20Channel/Approved%20M&C%20C-29182.html[7/1 5/2019 4:24:37 PM]
M&C Review
new owner's first mortgagee or a new homeowner as their primary residence. All other
assignments must be approved by the City Council.
The properties are located in COUNCIL DISTRICT 8.
FISCAL INFORMATIONICERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above
recommendations an estimated $6,020.95 per home in property taxes will be abated over the five
year period starting January 2020 or thereafter depending on the completion of each home. This
amount will be included in the City's five year financial forecast.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year (Chartfield 2)
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Sonia Singleton (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
217 Paradise-1003 Baurline and 2614 LaSalle Plans.pdf
2612 and 2712 LaSalle_Plans.pdf
Housing Channel Map for Council.pdf
Properties For Abatement.pdf
file:///chisilon/...OZone/Tax%20Abatement%20Agreements/NEZ%20Area%204/Housing%20Channel/Approved%20M&C%20C-29182.html[7/15/2019 4:24:37 PM]
Housing Channel
Properties for NEZ Abatement
Street Address Block Lot Addition
South
Half of
Lots 1 &
1003 Baurline Street 2 Garland's Subdivision
2612 LaSalle Street 2 4 Martindale Addition
2614 LaSalle Street 2 5 Martindale Addition
2712 LaSalle Street 2 12 Martindale Addition
217 Paradise Street 27 5 Riverside Addition