HomeMy WebLinkAboutContract 43852 (2)CITY SECRETARYr
CONTRACT NO. I5XS2
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
1508 Washington Avenue
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 T.M. Higgins, its duly authorized Assistant City
Manager, and Glen and Ricci N. Mace ("Owners"), owners of property located at 1508 Washington
Avenue, Block 2, Lot 3, Loyd's Addition an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the plat recorded in Volume 106, Page 10, of the Plat Records of Tarrant County, Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner
hereby agree that the following statements are true and correct and constitute the basis upon which the
City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) if the municipality determines that the creation of
the zone would promote:
(1) The creation of affordable housing, including manufactured housing in the zone;
(2) An increase in economic development in the zone;
(3) An increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) The rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a
NEZ, may enter into agreements abating municipal property taxes on property in the zone.
C. On July 31, 2001, the City adopted basic incentives for property owners who own property
located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and
including guidelines and criteria governing tax abatement agreements entered into between
the City and various third parties, titled "NEZ Basic Incentives", these were readopted on
December 7, 2010 (Resolution No. 3943). The December 7, 2010 NEZ Incentives are
attached hereto as Exhibit "1" hereby made a part of the Agreement for all purposes.
D. The NEZ Incentives contain 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 ("Code").
E. On December 7, 2010, the City Council adopted Ordinance No. 19463 ("Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 5R," City of Fort Worth,
Texas ("Zone").
OFFICIAL RECORD
II CITY SECRETARY
� FT. WORTH, TX
1 1-06-1 2 PO4:35 IN
F. Owner owns certain real property located entirely within the Magnolia Village NEZ and that
is more particularly described in Exhibit "2", attached hereto and hereby made a part of this
Agreement for all purposes (the "Premises").
G. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1
of this Agreement, on the Premises to be used as a single-family residence that will be
Owner occupied.
H. On May 24, 2012, Owner submitted a complete application for NEZ incentives and for tax
abatement to the City concerning the contemplated use of the Premises (the "Application"),
attached hereto as Exhibit "3" and hereby made a part of this Agreement for all purposes.
The City Council finds that the contemplated use of the Premises, the Required
Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with
encouraging development of the Zone in accordance with the purposes for its creation and
are in compliance with the NEZ Incentives, the Ordinance and other applicable laws,
ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy the
eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement, along with a copy of this
Agreement, has been furnished in the manner prescribed by the Code to the presiding
officers of the governing bodies of each of the taxing units in which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set
forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed on and within the Premises certain
improvements consisting of a single-family residence, of at least 1785 square feet in size and built
to the specifications listed in Exhibit "4", and having a construction cost upon completion of
$170,000.00 but such minimum construction costs shall be reduced by any construction cost
saving (collectively the "Required Improvements"). Owner shall provide a survey of the home
upon completion of the Required Improvements The parties agree that the final survey shall be a
part of this Agreement and shall be labeled 14xhibit "5". Minor variations and more substantial
variations if approved in writing by both parties to this Agreement before construction is
undertaken in the Required Improvements from the description provided in the Application for
Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that
the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are
used for the purposes and in the manner described in Exhibit '4".
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 description of the Project set forth in the Exhibit "4". In addition, Owner
covenants that throughout the Term, the Required Improvements shall be operated and maintained
for the purposes set forth in this Agreement and in a manner that is consistent with the general
purposes of encouraging development or redevelopment of the Zone.
2. ABATEMENT AMOUNTS. TERMS AND CONDITIONS.
Subject to and in accordance with this Agreement the City hereby grants to Owner 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.
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 on June 19,
2012, the year in which both parties executed this Agreement.
If the square footage requirement and the appraised value of the Required Improvements
are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to receive
any Abatement under this Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the
Required Improvements and shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements. 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 sold to a Home Buyer ("Beginning Date")
and, unless sooner terminated as herein provided, shall end on December 31 immediately
preceding the fifth (5th) 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.
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 "4". 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 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 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
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.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in Owner, however if Owner sells the Premises and
Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the
Premises and/or Required Improvements without the prior consent of the City Council, which consent shall
not be unreasonably withheld provided that (i) the City Council finds that the proposed assignee is financially
capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in
writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise
assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City
Council's prior consent shall constitute grounds for teiuiination 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:
City of Fort Worth
Attn City Manager's Office
1000 Throckmorton
Fort Worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
and
Housing & Economic Development Dept.
Attn Jay Chapa, Director
1000 Throckmorton
Fort Worth, Texas 76102
Owners:
Glen and Ricci Mace
4225 Shadow Dr.
Fort Worth, Texas 76116
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-25744 on July 17, 2012, 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 Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or
City Council actions authorizing this Agreement, and Owner shall be entitled to intervene in any
such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinances, rules, regulations or policies of the City. Venue for any action under this
Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is
performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or
impaired.
7.10 Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents incorporated
herein by reference, contains the entire understanding and agreement between the City and Owner,
their assigns and successors in interest, as to the matters contained herein Any prior or
contemporaneous oral or written agreement is hereby declared null and 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
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]
EXECUTED this /�'��-day of
EXECUTED this VIt�ay of
CITY OF FORT WORTH:
By: 7?/fl4fl4‘:/
Fernando Costa
Assistant City Manager
ATTES
By:
Lcu-e.4*
, 2012, by the City of Fort Worth, Texas.
, 2012, by Glen and Ricci N. Mace.
OWNER:
By: C
Gien Mace
Owe =-
By: /di
Ricci I. Mace
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APPROVED AS TO FORM AND LEGALITY:
By:
ary Kays
City Secretary
Melinda Ramos
Assistant City Attorney
M & C: C-25744
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
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
A/0lein.6re , 2012.
w
rktinticd
otary Public in and for
the State of Texas
5}'swiA J�.v�F�s
Notary's Printed Name
•
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mu e■. i.
I■ u u • 1 . . m. .. 1 1
EVONIA DANIELS
MY COMMISSION EXPIRES
July 10,2013
.- -.r-ea•...r1 .it+v
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•
•
day of
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Glen Mace known to me to be
the person whose name is subscribed to the foregoing instrument, and acknowledged to me that hhe
executed the same for the purposes and consideration therein expressed, in the capacity therein stated.
tfC-
GIVEN UNDER MY HAND AND SEAL OF OFFICE this t1 day of
2012.
sec)a
Notary Public in and fo
the State of Texas
vo&Th • C34%€)
Notary's Printed Name
STATE OF TEXAS §
COUNTY OF TARRANT §
•
SARAH J. ODLE
MY COMMISSION EXPIRES
November 5, 2015
BEFORE ME, the undersigned authority, on this day personally appeared Ricci N. Mace known to me
to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that she
executed the same for the purposes and consideration therein expressed, in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this Vany of
,2,Q12.
a
Notary`lublic in and
the State of Texas
Notary's Printed Name " •
'
•Y
SARAH J. ODLE
MY COMMISSION EXPIRES
November 5, 2015
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Exhibit 1: NEZ Incentives
Exhibit 2: Property Description
Exhibit 3: Application: (NEZ) Incentives and Tax Abatement
Exhibit 4: Required Improvements description including kind, number and location of the proposed
improvements.
Exhibit 5: Final Survey
Exhibit 1
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
1. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a "...municipality determines that the creation
of the zone would promote:
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone."
The City by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement or Tax Abatement" means a full or partial exemption from City of Fort Worth ad
valorem taxes on eligible real and personal property located in a NEZ for a specified period on
the difference between (i) the amount of increase in the appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun
after the execution of a written Tax Abatement Agreement and (ii) the appraised value of such
real estate prior to execution of a written Tax Abatement Agreement (as reflected on the most
recent certified tax roll of the appropriate county appraisal district for the year prior to the date
on which the Tax Abatement Agreement was executed).
"Affordable Units" means affordable to persons earning less than 80% Area Median Family
Income (AMFI) as defined by U.S. Department of Housing and Urban Development (HUD) for
single family housing and under 60% AMFI as defined by HUD for rental and multi -family.
"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.
Adopted December 7, 2010 1
Exhibit 1
"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)
"City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council.
"Commercial/Industrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project" is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to real property. Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
'Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214
"Minority Business Enterprise (MBE)" and "Women Business Enterprise (WBE)" is a minority or
woman owned business that has received certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed -Use Development Project" is a development project which proposes to construct or
rehabilitate mixed -use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed -use as described by the City of Fort Worth Zoning
Ordinance.
"Multi -family Development Project' is a development project which proposes to construct or
rehabilitate multi -family residential living units on property that is (or meets the requirements to
be) zoned multi -family or mixed use as defined by the City of Fort Worth Zoning Ordinance
"New Construction" is a newly constructed improvement requiring a permanent foundation. This
excludes accessory structures such as sheds and incidental out buildings.
"Primary Residence" is the residence that has a Homestead Exemption on file with Tarrant
County Appraisal District
Adopted December 7, 2010 2
Exhibit 1
"Project" means a "Residential Project", "Commercial/Industrial Development
Project ; "Community Facility Development Project', "Mixed -Use Development Project'; or a
"Multi -family Development Project."
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter 2303 of the Texas Government Code.
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 exemptions and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement;
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
d. Property is not in a tax -delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner -occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs
d. Property is not in a tax -delinquent status when the abatement application is
submitted; and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the followings
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. For rehabilitated property Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property;
Adopted December 7, 2010 3
Exhibit 1
c. Property is not in a tax -delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the City of Fort Worth Zoning Ordinance.
B MULTI -FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 vears.
If an applicant applies for a tax abatement agreement with a term of five vears or
Tess, this section shall apply.
Abatements for multi -family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
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 $200,0000 or
(b) For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200 000.
2. 1 %-100% Abatement of 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 apply.
Abatements for multi -family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
Adopted December 7, 2010 4
Exhibit 1
Years 1 throuah 5 of the Tax Abatement Agreement
Multi -family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
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 throuah 10 of the Tax Abatement Agreement
Multi -family projects shall be eligible for a 1 %-100% abatement of City ad valorem
taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall be
affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case -by -case basis; and
1. For a multi -family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of $200,000• or
2. For a rehabilitation project the property must be rehabilitated after NEZ
designation Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of $200 000.
b. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
Adopted December 7, 2010 5
Exhibit 1
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
1. 100% Abatement of City 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 apply.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing and Economic Development Department for such abatement.
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.
1 %-100% Abatement of Citv Ad Valorem taxes up to 10 vears
If an applicant applies for a tax abatement aareement 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 Housing and Economic Development Department for
such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000 whichever is greater.
Adopted December 7, 2010 6
Exhibit 1
Years 6 through 10 of the Tax Abatement Aareement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1 %-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital
Investment of $75,000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the
Base Value of the property, or $75,000, whichever is greater and meet
the requirements of subsection (c) below.
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED -USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of 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 apply.
Abatements for Mixed -Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing and Economic
Development Department for such abatement.
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
followings
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
(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.
Adopted December 7, 2010
Exhibit 1
2. 1 %-100% Abatement of City Ad Valorem taxes UD to 10 vears
If an applicant applies for a tax abatement aareement with a term of more than five
vears. this section shall apply.
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing and
Economic Development Department for such abatement.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
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
A new mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000• or for a rehabilitation project, it
must be rehabilitated after NEZ designation Eligible Rehabilitation costs on the
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater.
Years 6 through 10 of the Tax Abatement Aareement
Mixed Use Development projects shall be eligible for 1-100% abatement of City ad
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new mixed -use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000• or for a rehabilitation project it
must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the
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;
Adopted December 7, 2010 8
Exhibit 1
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. A tax abatement shall not be granted for any development project in which a
building permit application, excluding grading and/or demolition, has been filed with
the City's Planning and Development Department. In addition, the City will not abate
taxes on the value of real or personal property for any period of time prior to the year
of execution of a Tax Abatement Agreement with the City
3. 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
4. Tax Abatements for a new construction project will automatically terminate two
years after Council approval of the tax abatement if a building permit has not been
pulled and a foundation has not been poured.
5. Tax Abatements for a rehabilitation project will automatically terminate two years
after Council approval of the tax abatement if the project is not complete
6. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets NEZ tax abatement criteria; and
2. the applicant is not responsible for the tax delinquency for the Property; and
3. the applicant enters into an agreement to pay off the taxes under the
guidelines permitted under state law; and
4. the tax abatement shall provide that the agreement shall take effect after the
delinquent taxes are paid in full
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
Adopted December 7, 2010 9
Exhibit 1
Projects to be constructed on property to be purchased under a contract for deed
are not eligible for tax abatements.
8. 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.
9 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 may assign the tax abatement
agreement for the remaining term once the new owner submits an application so long
as the new owner complies with all of the terms of the tax abatement agreement 8 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
III E 1 E 2; and E3 and
b. File an application with the Housing and Economic Development Department, as
applicable and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
10. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
11. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store.
12. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council.
Adopted December 7, 2010 10
Exhibit 1
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
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.
13. If a property in the NEZ on which tax is being abated is sold, the new owner may
e nter 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 automatic cancellation of the agreement and recapture of any
taxes abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
1. An application fee of $25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section III.A is
$100.
3. The application fee for multi -family, commercial, industrial, community facilities and
mixed -use development projects governed under Sections III.B., C and D , is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, with a $200
minimum not to exceed $2,000 The Application Fee shall not be credited or
refunded to any party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case -by -case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible' to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth —however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will
n o longer be required.3. Projects to be constructed on property to be purchased
u nder a contract for deed are not eligible for development fee waivers.
4. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project the property owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
Adopted December 7, 2010 11
Exhibit 1
c. must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Project Before construction. the applicant must
ensure that the project is located in the correct zonina district.
B DEVELOPMENT FEES
1. Once the Application for NEZ Incentives has been approved and certified by the City the
following fees for services performed by the City of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Base Value of the property on Eligible Rehabilitation costs:
a) All Building Permit related Fees (including Plans Review and Inspections) except as
stated in IV B. 2. below
b) Plat Application Fee (including Concept Plan, Preliminary Plat, Final Plat, Short Form
Replat)
c) Board of Adjustment Application Fee
d) Demolition fee
e) Structure Moving Fee
f) Community Facilities Agreement (CFA) Application Fee
g) Zoning Application Fee
h) Street and Utility Easement Vacation Application Fee
i) Ordinance Inspection Fees
j) Consent/Encroachment Agreement Application Fees
k) Transportation Impact Fees
I) Urban Forestry Application Fees
m) Sign Permit Fees
2. Neighborhood Empowerment Zone Fees not waived or reduced as noted in Chapter 7 of
the Fort Worth Code include:
a.) Investigation Fees
b.) Plan Revision Fees
c.) Change of Record Fees
d.) Inspection outside of normal business hours Reinspection Fee
e.) Building Permits where work has not commenced will be charged
3. 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.
Adopted December 7, 2010 12
Exhibit 1
2. Commercial, industrial, mixed -use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed -use or
community facility development project.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
required Applicant may request the additional amount of impact fee waiver
through the Planning and Development Department.
RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. Project must be located in a NEZ.
2. 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 receive a release of
City liens
3. 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.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
5. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E for a Project, the property
owner/developer
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
c. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
d. 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
e. 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 receive a release of City liens.
6. 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.
Adopted December 7, 2010 13
Exhibit 1
7. Liens shall be released once the Project Improvements have been made to the
property.
8. 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.
4. Developers constructing new multi -family, commercial, industrial, mixed -use or
community facility development projects.
C. DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval
D. BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi -family, commercial, industrial, mixed -use,
or community facility properties.
4. Developers constructing multi -family, commercial, industrial, mixed -use, or
community facility projects.
E. PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant Tots.
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
Adopted December 7, 2010 14
Exhibit 1
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 Planning and Development 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 Housing and Economic Development Department. The
application fee, review, evaluation and approval will be governed by City of Fort
Worth Tax Abatement Policy Statement for Qualifying Development Projects.
3. All NEZ certifications for incentives will expire after five years.
4. NEZ benefits will continue for certified projects (18) eighteen months after a NEZ is
terminated or the NEZ boundary changed.
B CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V
1. The Planning and Development Department will review the application for accuracy
and completeness. A complete application must include proof that:
1. The Project is located in a NEZ;
2. The Public Notification Process has been completed as stated in section IX;
3. The project is in compliance with the adopted NEZ plan; and
4. The Council Member for the district in which the project is located has approved the
project.
Once the Planning and Development Department determines that the application is
complete, the Planning and Development Department will certify the property
owner/developer's eligibility to receive tax abatements and/or basic incentives based on
the criteria set forth in Section III., IV. and V. of this policy as applicable. Once an
applicant's eligibility is certified the Planning and Development 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 and Economic Development Department: property tax abatement for
residential properties and multi -family development projects, release of City liens
b. Housing and Economic Development Department property tax abatement for
commercial, industrial, community facilities or mixed -use development projects
c. Planning and Development Department: development fee waivers and release of
City liens.
d. Water Department. impact fee waivers.
e. Other appropriate departments, if applicable.
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties and Multi -family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval the City Manager shall execute a tax
abatement agreement with the applicant.
Adopted December 7, 2010 15
Exhibit 1
b. For a completed and certified multi -family development project application for
more than five years of tax abatement:
(1) The Housing and Economic Development 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.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant
c Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed -Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Housing and Economic Development 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 tom
(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 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
Adopted December 7, 2010 16
Exhibit 1
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 Planning and Development Department will review the certified
applicant's application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicant's application and make
appropriate recommendations to the City Council.
4. Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives.
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council
5. Release of City Liens
For certified applications of release of City liens, the Housing and Economic
Development Department will release the appropriate liens on NEZ tax abatement
applicants. The Planning & Development Department will release liens on NEZ basic
incentives applicants.
VII. REFUND POLICY
In order for an owner/developer of a Project in a NEZ to receive a refund of development
fees or impact fees the conditions set forth in the Refund of Development and Impact
Fee Policy, attached as Attachment "A' , must be satisfied.
VIII. OTHER INCENTIVES
A. Plan reviews of proposed development projects in the NEZ will be expedited by the
Planning and Development Department
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
Adopted December 7, 2010 17
Exhibit 1
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 that are within 300 feet of the proposed Project. The
measurement of the distance between the proposed project and Neighborhood
Associations or Community Based Organizations shall be along the property
lines of the street fronts and from front door to front door, and in direct line
across the intersections.
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 that are within 300 feet of the proposed
Project; 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 within 300 feet of where the proposed
Project is located and the associations or organizations failed to arrange a
meeting with the owner/developer within two weeks of initial contact.
X Ineligible 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
Adopted December 7, 2010 18
Exhibit 1
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
P urpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
U nless expressly accepted, this policy applies to all development and impact fees
waived by the City through the NEZ.
U nder the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects located in a
designated NEZ. The impact fees include only water and sewer impact fees, up to
$55,000 for commercial, industrial, mixed -use or community facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3 Board of Adjustment application fee
4 Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7 Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letter from
the Planning and Development 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 Planning and Development
Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZ Tax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ; or
Adopted December 7, 2010 19
Exhibit 1
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund. This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request action or proceeding concerning the refund of fees normally waived
through the NEZ must be filed within ninety days following the date that the fees were
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Planning and Development 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 Planning and Development Department that the
project meets all NEZ fee waiver criteria, that Department shall process the request
based on the qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program, and
b. Taxes and special assessments; and
c. City liens such as mowing, board -up, trash, demolition and paving liens.
An applicant shall not qualify for any refund if:
a The applicant was made aware of the NEZ incentives before he/she pays the
fees; or
b. The applicant does not meet the requirements for NEZ incentives at the time
he/she paid the fees, or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
Adopted December 7, 2010 20
Exhibit 1
policy and other policies or regulations adopted by the City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
Adopted December 7, 2010 21
Exhibit "2"
Property Description
1508 Washington Avenue Block 2, Lot 3, Loyd's Addition an Addition to the City of Fort Worth, Tarrant
County, Texas, according to the plat recorded in Volume 106, Page 10, of the Plat Records of Tarrant
County, Texas
Exhibit 3
FORT WORTH
Application No.
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
APPLICATION CHECK LIST - Please submit the following documentation:
t A completed application form
0 A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and agents
in the City Fort Worth
❑ Non Refundable Application fee — For all Basic Incentives applications excluding Tax Abatement the
application fee is $25.00. For multifamily, commercial, industrial commercial facilities, and mixed -use tax
abatement applications. 0.5% of the total Capital Investment of the project, with a $200.00 minimum and
not to exceed $2,000.00; For residential tax abatement applications $100.00 per house.
Proof of ownership, such as a warranty deed, affidavit of heirship, or a probated will OR evidence of site
control, such as option to buy (A registered warranty deed is required for tax abatement application.)
Title abstract of the property (only if applying for release of City liens)
❑ A reduced 1 lx17 floor plan, site plan, and site elevation with
a written detailed project description that includes a construction time line
0 A detailed line item budget showing the cost breakdown for the project
❑ Copy of Incorporation Papers noting all principals, partners, and agents if applicable
❑ Required - Meet with the Councilmember and Neighborhood & other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6, 2004 or
followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation (For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL. ALL REQUIRED
DOCUMENTS SHOWN IN 1'HE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLICATION IS RECEIVED.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT ALL
BUILDING PERMITS MUST BE PULLED WITHIN Ilit; 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED, OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED, OR YOU
WILL BE REQUIRED TO RE -APPLY FOR NEZ INCENTIVES.
IL APPLICANT / AGENT INFOR.IVIATION
1. Applicant:
3. Address:
4. Phone no.:
6. Email:
7. Agent (if any)
8. Address:
9. Phone no.:
11. Email:
124atJ MACE 2. Contact Person: O
gzzS Sirrnhd3# PE- Pr 4) f -Tic -7tri/Ito
Street City State Zip
57c fib* 228i 5. FaxNo.:
'tomaceearif'.nm"
Street
City
10. Fax No.:
Revised July 12, 2011 1
State Zip
FORT WORTH
Application No.
PROJECT ELIGIBILITY
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 a map showing the location of the project.
Table 1 Property Ownership
Address Zip Code 1.egal 11 ceriptinl►
(Project Location) Subdivision Name 1 Lot No. Block No.
is -or AJ»smodcrid 116(04 Loyos AtAt l,j 3 7.41.
Other properties owned in the City of Fort Worth - continue on a separate sheet and attach if necessary.
4 22f lli*sow. t04G(& 14 K6
ICof wr1 H/w4tei
t6Io
2. For each property listed in Table 1, please check the boxes below to indicate if:
• there are taxes past due; or
• there are City liens; or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission s Order of Demolition where the property was demolished within the last five
years
Table 2 Property Taxes and City Liens
Property
Address Taxes
Due
Ci
n
■
❑
City Liens on Property
Weed Board-up/Open Demolition
Liens Stucture Liens Liens
■
■
❑ ❑
❑ ❑
❑ I ❑
❑ I ❑
❑ I ❑
(Please attach additional sheets of paper as needed.)
■
u
■
■
u
n
❑
■
■
Pavmg
Liens
Order of
Demolition
u ❑
n
❑
■
❑
El CI
❑ u
n n
❑ ❑
I ❑ I ❑
u
n
u
n
■
If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible
for NEZ incentives
Revised July 12, 2011 2
3. Do you own other properties under other names? U Yes ❑v"No
If Yes, please specify
4. Does the proposed project conform with City of Fort Worth Zoning?
5.
If no, what steps are bein
Project
Type:
taken to insure compliance?
Single Family
Multi- Family
■
Commercial
Industrial
11 Owner Occupied
❑ Rental Property
6. Please describe the proposed residential or commercial project:
Application No.
f
Yes Li No
Community Facilities
n
Mixed -Use
7. If your project is a commercial, industrial, or mixed -use project, please describe the types of
businesses that are being proposed: f
8. Is this a new construction or rehab project? 2/New Construction ❑ Rehab
9. How much is the total development cost of your project? _$ /1 o 7 000
10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District (TAD)
assessed value of the structure during the year rehabihtation occurs? ❑ Yes No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT inc ude:
Front yard fencuig consisting of chain -link or solid material construction, personal property such as furniture,
appliances, equipment, and/or supplies Total eligible rehabilitation costs shall equal to or exceed 30% of the
TAD appraised value of the structure during the year rehabilitation occurs
11, How much is the total square footage of your project? 1, 1S square feet
* If applying for a tax abatement please answer questions 12 16. If not skip to part III Incentives
12. For a single-familv homeownership, mixed -use, or multi -family development protect, please fill out
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Range of Owners or Renters
Number ofUints Percentage
Income Range.
> 80% of AMFI**
At or below 80% of AMFI / f O%
Total Units.:
**AMFI: Area Median Family Income. Please see attachment for income and housing payment guidelines.
13. For a multifamily project to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80% of AMFI Cheek the box if you are requesting a waiver of this
requirement. ❑
14. For a commercial. industrial or community facilities project. indicate square footage of non-
residential space.
Commerciah,_:.. Industrial;> CointnunityFacilities ";..
square feet
square feet
Revised July 12, 2011 3
square feet
FORT WORT
Application No.
15. How much will be your Capital Investment*** on the project? Please use the following table to provide
the details and amount of your Capital Investment (Attached additional sheets if necessary).
Table 4 Itemized Budget of the Project
Items : Amount Notes.
Total
***Capital investment includes only real property improvements such as new facilities and structures, site improvements, facility
expansion, and facility modernization. Capital Investment DOES NOT include land acquisition costs and/orany existing
improvements, or personal pioperry (such as machinery, equipment, and/or supplies or inventory).
16. For a commercial. industrial. community facility or mixed -use uroiect, how many employees will the
project generate? N /.(
17. For a mixed -use nroiecte, please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a Mixed -Use Project
Type.. Square Footage Percentage
Residential t l t' C e
Office
Eating
Entertainment
Retail sales
Service
Total
III. INCENTIVES - What incentives are you applying for?
Municinal Pronertv Tax Abatements
Must pr$ride Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
5 years El More than 5 years
(Residential owner occupied Residential Rental Property Apartments (5 plus units) ❑ Commercial
Development Fee Waivers
All building permit related fees (including Plans Review and Inspections)
Plat application fee (includin concept plan, preliminary plat, final plat, short form replat)
oning application fee [Board of Adjustment application fee
emolition fee
tructure moving fee
Community Facilities Agreement (CFA) application fee
Street and utility easement vacation application fee
Impact Fee Waivers - The maximum water/wastewater impact fee waiver amount for a commercial, industrial, mixed -
use, or co unity facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters
Water (Meter Size
Release of City Liens
Weed liens
(No. of meters
)
aving hens Board up/open structure liens
Revised Tilly 12, 2011 4
Transportation
emolition liens
1
FORT WORTH
Application No.
III. ACKNOWLEDGMENTS
1 hereby certify that the information provided is true and accurate to the best of my knowledge I hereby
acknowledge that I have received a copy of NEZ Basic Incentives, which governs the granting of tax abatements, fee
waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City.
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible in obtaining required permits and inspections from the City and in
ensuring the project is located in the correct zoning district.
I understand that my application will not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requested by the City.
4451 I
(PRINTED OR TYPED NAME)
r
arTIORIZFD SIGNATURE)
d14/11?2y2dit12--
(DATE)
Pleasanton or fax your., appiication to: _.
City of Fort Worth Planning. and Development Departnient
t000'Throckmorton Street; Fort'Worth, Texas16102. -
Tel: (817) 392-2222 Fax: (817) 392-8116
Electronicversion of this form is available on our website. For more information on the NEZ Program, please visit
our web site at www.fortworthgov.org/planninganddevelopment
For Office Use Only
Application No. In which NEZ? Council District
Application Completed Date (Received Date): Conform with Zoning? Yes ❑No
Type? ■ SF ❑ Multifamily ❑ Commercial ❑ Industrial 0 Community facilities ❑ Mixed -Use
Construction completion date?
TAD Account No.
Meet affordability test?
Rehab at or higher than 30%?
Tax current on this property?
City liens on this property?
• Weed liens
• Board-up/open structure liens
• Demolition liens
• Paving liens
• Order of demolition
Certified? ❑ Yes [
If not certified, reason
Referred to:
•
Before NEZ ❑ After NEZ Ownership/Site Control ■ Yes ❑ No
_J Yes
❑ Yes
r] Yes
■
Yes
n Yes
❑ Yes
Li Yes
E Yes
No Certified by
•
No
No
No
LJ No
❑ No
No
■
(J No
[� No
Economic Development (JHousing
Revised July 12, 2011
■
Consistent with the NEZ plan?
Minimum Capital Investment?
Meet mixed -use definition?
Tax current on other properties?
City liens on other properties?
• Weed liens
• Board-up/open structure liens
• Demolition hens
• Paving hens
• Order of demolition
Date certification issued?
Development UWater UCode
5
❑ Yes
Yes
Yes
Yes
•
■
•
■
Yes
Yes
Yes
Yes
Yes
LJ No
r]No
No
No
U No
❑ No
No
No
No
■
TPW
Project Description
Single Family Residence
3 Bedrooms
2 Bathrooms
Fireplace
Dining Room
Living Room
Study
Covered Porch
Rear Deck
Approximately 1785 square feet
Detached 1 Car Garage
Exhibit "4"
i3ff c al s to fthe ply 4f Fort Worth Texas
DATE
7/17/2012
CODE: C
SUBJECT:
COUNCIL ACTION: Approved on 7/17/2012
REFERENCE
NO.:
TYPE:
C-25744 LOG NAME: 17NEZ1508WASHINGTON
NON- PUBLIC
CONSENT HEARING:
Authorize Five -Year Tax Abatement Agreement with Glen and Ricci N. Mace for Property
Located at 1508 Washington Avenue in the Magnolia Village Neighborhood Empowerment
Zone (COUNCIL DISTRICT 9)
NO
RECOMMENDATION:
It is recommended that the City Council authorize a five-year Tax Abatement Agreement with Glen
and Ricci N. Mace for the property at 1508 Washington Avenue in the Magnolia Village Neighborhood
Empowerment Zone in accordance with the Neighborhood Empowerment Zone Tax Abatement
Policy and Basic Incentives.
DISCUSSION:
Glen and Ricci N. Mace (Property Owners) are the owners of the property described as Block 2, Lot
3, Loyd's Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the plat
recorded in Volume 106, Page 10, of the Plat Records of Tarrant County, Texas, at 1508 Washington
Avenue, Fort Worth, Texas. The property is located within the Magnolia Village Neighborhood
Empowerment Zone (NEZ) and the Fairmount/Southside Historic District. On May 17, 2012, the
Historic and Cultural Landmarks Commission approved a Certificate of Appropriateness for the
construction of a single family residential structure at 1508 Washington Avenue.
The Property Owners plan to invest an estimated $170,000.00 to construct an approximately 1,785
square foot single family residence (Project). The Project will be sold as a primary residence.
The Housing and Economic Development Department reviewed the application and certified that the
property owner and Project met the eligibility criteria to receive a 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 used for calculating
municipal property tax will be frozen for a period of five years starting January 2013 at the estimated
pre -improvement value as defined by the Tarrant Appraisal District (TAD) on June 19 2012, for the
property as follows:
Pre -Improvement TAD Value of Improvements $ 0.00
Pre -Improvement Estimated Value of Land $30,000.00
Total Pre -Improvement Estimated Value $30,000.00
The municipal property tax on the improved value of Project after construction is estimated at
$1,453.50 per year for a total amount of $7 267.50 over the five-year period. However, this estimate
may differ from the actual tax abatement value, which will be calculated based on the Tarrant
Appraisal District appraised value of the property.
Page 1 of 2
In the event of a sale of this property, the NEZ Tax Abatement Agreement may be assigned to a new
owner's first mortgagee or a new homeowner as their primary residence All other assignments must
be approved by the City Council.
This property is located in COUNCIL DISTRICT 9.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will have no material effect on
City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
1508Washinciton NEZMaosforCouncil.pdf
4 of 5 - East and North Elevations.pdf
5 of 5 - West and South Elevations.pdf
Fernando Costa (6122)
Jay Chapa (5804)
Cynthia Garcia (8187)
Sarah Odle (7316)
Page 2 of 2