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HomeMy WebLinkAboutContract 45072 (2)CITY SECRETARY 4s01 coNrwacr ao. TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 3500 S Jennings 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 City Manager, and B.J. Masters, Manager of Matrix H&S Realty, LLC, ("Owner") of property located at 3500 S. Jennings Avenue, Lot 11R, Block 5, South Fort Worth Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 388-184, Page 17, Plat Records, Tarrant County Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. Chapter 378 of the Texas Local Government Code allows a municipality to create a neighborhood empowerment zone if the municipality determines that the creation of the zone would promote: (1) the creation of affordable housing, including manufactured housing in the zone; (2) an increase in economic development in the zone; (3) an increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) the rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a neighborhood empowerment zone may enter into agreements abating municipal property taxes on property in the zone. C. On July 31, 2001, the City 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 May 21, 2013 (Resolution No. 4209). D. The NEZ Incentives contains appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended (the "Code"). E. On December 7, 2010, the City Council adopted Ordinance No. 19462 ("Ordinance") establishing the Hemphill/Berry area as "Neighborhood Empowerment Reinvestment Zone No. 7R," City of Fort Worth, Texas ("Zone"). orfaticilii_v__J art SELTREITAIRY Page 1 of 12 no trir VI, 'TN NEZ Tax Abatement with Matrix H&S Realty, LLC RECEIVED NOV 01. 2013 Approved by M&C C-26380, August 6, 2013 F. Owner owns certain real property located entirely within the Zone and that is more particularly described in Exhibit "1". attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. On January 7, 2013 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. Owner or its assigns plans to make improvements to the Premises in a serious of phases over time. The first construction phase subject to this Agreement is a 16,800 square foot building further described below.. H. Owner or its assigns plan to construct a Painting and Assembly building as part of its first phase of construction, more particularly described in Section 1.1 of this Agreement, on the Premises (the "Project") and further described on the exhibits as "Phase 1". I. The contemplated use of the Premises, the Painting and Assembly building (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 NF4Z 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 Painting & Assembly building, designated as Phase 1 on the attached exhibits; and having a construction cost upon completion of $1 870,993.00 but such minimum construction costs shall be reduced by any construction cost saving (collectively, the ' Required Improvements"). The kind and type of construction are more particularly described in Exhibit "3". Tarrant Appraisal District must appraise the property (improvements and land) within 10% of $1,870,993.00 for Phase 1. Owner shall provide a copy of the final construction invoices to City once the construction is complete; the construction invoices shall be a part of this Agreement and shall be labeled Exhibit "4". Minor variations, and more substantial variations if approved in writing by both of the parties to this Agreement, in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Page 2 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 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 "3". 1.2. Completion Date of Required Improvements. Owner covenants to substantially complete construction of all of the Required Improvements within two years from the date of Council approval of the tax abatement. 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, including, without limitation, delays caused by adverse weather, delays in receipt of any required permits or approvals from any governmental authority or acts of God, fires, strikes, national disasters wars, riots and material or labor restrictions, and shortages as determined by the City of Fort Worth in its sole discretion, which shall not be unreasonably withheld, but shall not include construction delays caused due to purely financial matters, such as without limitation, delays in the obtaining of adequate financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and the Premises shall be continuously used as a Paint and Assembly building and in accordance with the description of the Project set forth in the Exhibit "3 ' In addition, Owner covenants that throughout the Term, the Required Improvements shall be operated and maintained for the purposes set forth in this Agreement and in a manner that is consistent with the general purposes of encouraging development or redevelopment of the Zone. 2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner real property tax abatement on the Premises, the Required Improvements, as specifically provided in this Section 2 ("Abatement"). Abatement of real property taxes only includes City of Fort Worth -imposed taxes and not taxes from other taxing entities. 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises and the Required Improvements over their values as determined by TAD on July 10, 2013, minus the value of the building that was demolished by the Owner prior to the execution of this Agreement. For the purposes of this Agreement the amount is $469,260.00 the year in which this Agreement was entered into: Page 3 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 One Hundred percent (100%) of the increase in value from the construction of the Required Improvements. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, except that such minimum construction costs shall be reduced by construction cost savings, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2. Increase in Value. The abatement shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements and shall not apply to taxes on the land. 2.3. Abatement Limitation. Notwithstanding anything that may be interpreted to the contrary in this Agreement, Owner's Abatement in any given year shall be based on the increase in value of the Premises over its value as determined by TAD on July 10, 2013, after demolition including the Required Improvements, up to a maximum of $2,806,489.50. In other words, by way of example only if the increase in value of the Premises over its value on January 1, 2013, including the Required Improvements, in a given year is $2,900,000.00, Owner's Abatement for that tax year shall be capped and calculated as if the appraised value of the Premises for that year had only been $2 806 489 50. 2.4. Protests Over Appraisals or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.5. Term. The term of the Abatement (the "Term") shall begin on January 1 of the year following the calendar year in which a final certificate of occupancy is issued for the Required Improvements ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5th) anniversary of the Beginning Date. 2.6. Abatement Application Fee. The City acknowledges receipt from Owner of the required Abatement application fee of one half of one percent (5%) of Project's estimated cost, not to exceed $2,000. The application fee shall not be credited or refunded to any party for any reason. Page 4 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 3. RECORDS, AUDITS AND EVALUATION OF PROJECT. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term and for five (5) years after termination ("Compliance Auditing Term"), at any time during normal office hours throughout the Term and the year following the Term and following reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in order for the City to inspect the Premises and evaluate the Required Improvements to ensure compliance with the terms and conditions of this Agreement Owner shall cooperate fully with the City during any such inspection and/or evaluation. 3.2. Audits. The City shall have the right to audit at the City's expense the financial and business records of Owner that relate to the Project and Abatement terms and conditions (collectively, the "Records') at any time during the Compliance Auditing Term in order to determine compliance with this Agreement and to calculate the correct percentage of Abatement available to Owner. Owner shall make all applicable Records available to the City on the Premises or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3. Provision of Information. On or before April 1 following the end of every year during the Compliance Auditing Term and if requested by the City, Owner shall provide information and documentation for the previous year that addresses Owner s compliance with each of the terms and conditions of this Agreement for that calendar year. This information shall include, but not be limited to, the number and dollar amounts of all construction contracts and subcontracts awarded on the Project. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event of Default, as defined in Section 4.1. 3.4. Determination of Compliance. On or before August 1 of each year during the Compliance Auditing Term, the City shall make a decision and rule on the actual annual percentage of Abatement available to Owner for the following year of the Teirn 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. Page 5 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 4. EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement if (i) Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real property taxes with respect to the Premises or the Project, or its ad valorem taxes with respect to the tangible personal property located on the Premises become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes or (iii) OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCE OF THE CITY OF FORT WORTH (collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall have 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 one hundred twenty (120) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more than one hundred twenty (120) 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 Damaiies. 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 m nature and will be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall not be eligible for the Abatement for the remaining Term and Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with this Agreement for each year when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to provide the City with compensation for actual damages and Page 6of12 N -4,Z Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 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. 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible, or that a higher or better use is preferable, the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has commenced, the Term shall expire as of the effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii) neither party shall have any further rights or obligations hereunder. 4.5. Sexually oriented Business & Liquor Stores or Package Stores. a. Owner understands and agrees the City has the right to terminate this agreement if the Project contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City s sole discretion if the Project contains or will contain a liquor store or package store. 5. EFFECT OF SALE OF PRENIISES. Company may assign this Agreement and all or any portion of the benefits provided hereunder to an Affiliate without the consent of the City, provided that (i) prior to or contemporaneously with the effectiveness of such assignment, Company provides the City with written notice of such assignment which notice shall include the name of the Affiliate and a contact name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and conditions of Company under this Agreement. For purposes of this Agreement, an ` Affiliate" means all entities, incorporated or otherwise, under common control with Company controlled by Company or controlling Company. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Company may not otherwise assign this Agreement or any of the benefits provided hereunder to another party without the consent of the City Council, which consent shall not unreasonably be withheld or delayed, 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 assignee agrees in writing to assume all terms and conditions of Company under this Agreement. Any attempted assignment without the City Council's prior written consent Page7of12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. 6. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager 1000 Throckmorton Street Fort Worth, TX 76102 Owner* Matrix H&S Realty, LLC BJ Masters, Manager 3521 Hemphill Street Fort Worth, Texas 76110 and Housing & Economic Development Department Attn Jay Chapa, Director 1000 Throckmorton Street Fort Worth, TX 76102 7. MISCELLANEOUS. 7.1. Bonds. The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to rights of holders of outstanding bonds of the City. 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning or Zoning Commission or any member of the governing body of any taxing units in the Zone. 7.3. Conflicts Between Documents. In the event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control In the event of any conflict between the body of this Agreement and Exhibit ` 2' , the body of this Agreement shall control. As of August 6, 2013, the City is unaware of Page 8of12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 any conflicts between this Agreement and the City's zoning ordinance or other ordinances or regulations. 7.4. Future Annlication. A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future legislation. This Agreement shall not be construed as evidence that such exemptions do not apply to the Premises and/or Required Improvements. 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval Mayor and Council Communication No. C-26380 on August 6, 2013, which among other things authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estonnel Certificate. Any party hereto may request an estoppel certificate from another party hereto so long as the certificate is requested in connection with a bona fide business purpose. The certificate, which if requested will be addressed to the Owner, shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists, the nature of the Event of Default and curative action taken and/or necessary to effect a cure), the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions, or City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such litigation. 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances rules regulations, or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County Texas. 7.9. Severabilitv. 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. Page 9 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 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. CITY OF FORT WORTH: :74414/Mt44 Fernando Costa Assistant City Manager • APPROVED AS TO FORM AND LEG ‘ ) , -. ) . AAA,LsiL 1 idel Melinda Ramos Assistant City Attorney M & C: C-26380 By: B.J. asters, Manager rix H&S Realty LLC Page 10 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 ©PTV WW:©S `t RY � EF . 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. G VEN UNDER MY HAND AND SEAL OF OFFICE this Jr day of , 2013. 40-1 otary Public in and for th - State of Texa 0 Notary's Printed Name STATE OF TEXAS § COUNTY OF TARRANT § 1 1 II IL J op 11. 1 EVONIA DANIELS Notary Public, State of Texas My Commission Expires July 10, 2017 "-.1 1111_ 1.._I _ • BEFORE ME, the undersigned authority, on this day personally appeared B.J. Masters, Manager of Matrix H&S Realty LLC, 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, and in the capacity therein stated for Matrix H&S Realty, LLC. GIVEN UNDER MY HAND AND SEAL OF OFFICE this l day of 0(4170 b_eA., .2013. Octdaluot Notary Publi n and for The State of Texas i \An Le k_ MoriAlocook Notary's Print�d Na� (SYt* MARCY LEIGH WOODWARD Notary Public, State of Texas :n_seMy Commission Expires ;tio•�,��`�� April 23, 2015 Page 11 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 Vi 1 Exhibit 1: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Phase I Project description including kind, number, and location of the proposed improvements. Exhibit 4: Final Construction Invoices Page 12 of 12 NEZ Tax Abatement with Matrix H&S Realty, LLC Approved by M&C C-26380, August 6, 2013 Exhibit 1 Property Legal Description 3500 S. Jennings Avenue, Lot 11R, Block 5, South Fort Worth Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 388- 184, Page 17, Plat Records Tarrant County Texas FORT WORTH 1. I n n n Exhibit 2 Application No. NZ1 3-00007 CITY OF FORT WORTH NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM PROJECT CERTIFICATION APPLICATION APPLICATION CHECK LIST - Please submit the following documentation: A completed application form A list of all properties owned by the applicant, owner, developer, associates, principals, partners, and agents in the Cttti 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 ficilities, and mixL,d-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 11 xl7 floor plan, site plan, and site elevation with a written detailed project description that includes a construction time line 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 THE 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 THE 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. II. APPLICANT / AGENT INFORMATION 1. Applicant: 3. Address: 4. Phone no.: 6. Email: 7. Agent (if any) 8. Address: 9. Phone no.: 11. Email: Revised July 22, 2010 Hayes & Stolz Industrial Mfg. 2. Contact Person: B.J. Masters, President 3521 Hemphill Street Fort Worth, TX 76110 Street City State Zip 817-926-3391 5. Fax No.: 817 926-4133 blmast@hayes-stolz.com Terry M. Harden Architects, Inc. (Terry M. Harden, RA, RID) 6850 Manhattan. Fort Worth, Texas 76120 Street City State Zip 817-446-1484 10. Fax No.: 817-429-1455 terry@terryharden.com 1 Table 2 FORT WORTH PROJECT ELIGIBILITY Application No. 1. Please list down the addresses and legal descriptions of the project and organization owns in Fort Worth. Attach metes and bounds description description is available. Attach a map showing the location of the project. Table 1 Property Ownership Address Zip Code (Protect Location) 3500 South Jennings Avenue Other properties owned in 3529 Hemphill Street 3517 Hemphill Street 3511 Hemphill Street 3501 Hemphill Street 3601 Hemphill Street 76110 1 Subdivision Name South Fort Worth Addition • other properties your if no address or legal Lot No. Block No. 11R 5 the City of Fort Worth - continue on a separate sheet and attach if necessary. 76110 76110 76110 76110 76110 South Fort Worth Addition South Fort Worth Addition South Fort Worth Addition South fort Worth Addition South Fort Worth Addition 10 5 4 1 1 5 5 5 5 5 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 hens; 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. Property Taxes and City Liens Property 1 City Liens on Property Address Taxes Weed Board-up/Open Demolition Paving Order of Due Liens Stucture Liens Liens Liens Demolition ■ u (Please attach additional sheets of paper as needed.) u n C u n C u n n u C u ❑ Li ❑ I u u ■ I ■ n Li u u n LJ u u 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 22, 2010 2 FORT WORTH 3. Do you own other properties under other names? Yes No If Yes, please specify Yes - All properties are owned by Matrix H&S Realty LLC 4. Does the proposed project conform with City of Fort Worth Zoning? 5. If no, what steps are being taken to insure compliance? Project Type: n Single Family I�1 Owner Occupied Rental Properly Multi- Family I Commercial Industrial Application No. 1N1 Yes 1 ( No Common ty Facilities n Mixed -Use s 6. Please describe the proposed residential or commercial project. EXPANSION OF PAINTING OPERATIONS REPLACEMENT OF BUILDINGS AND UTILITIES; REPLACEMENT OF SANITARY SEWER, ALLEY AND SOUTH JENNINGS PAVEMENT. 7. If your project is a commercial, industrial, or mixed -use project, please describe the types of businesses that are being proposed: SAME AS ITEM 6 ABOVE 8. Is this a new construction or rehab project? ❑ New Construction 0 Rehab 9. How much is the total development cost of your project? swim UP TO POSSIBLY SOW for entire project 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 rehabilitation occurs? Yes No *Eligible rehabilitation includes only physical improvements to real property. It does NOT inc ude: Front yard fencing consisting of chain -link or solid material construction; personal property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal to or exceed 30% of the TAD appraised value of the structure during the year rehabilitation occurs. 11. How much is the total square footage of your project? 16,800 SF - PHASE 1 square feet * If applying for a tax abatement please answer questions 12 16. If not skip to part III Incentives 12. For a single-family homeownership, mixed -use, or multi -family development proiect, 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 of Units Percentage Income Range > 80% of AMFI** At or below 80% of AMFI Total Units **AMFI: Area Median Family Income. Please see attachment for income and housing payment guidelines. 13. For a multifamily protect to be qualified for tax abatement, at least 20% of total units shall be affordable to families at or below 80% of AMFI. Check the box if you are requesting a waiver of this requirement. n 14. For a commercial, industrial or community facilities proiect. indicate square footage of non- residential space. Commercial Industrial Community Facilities square feet 16,800 Revised July 22, 2010 3 square feet square feet FORT WORTH 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 Phase 1 - Painting Expansion $1.9 m Immediate need; paint equipment not included 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 md/or any existing improvements, or personal property (such as machinery, equipment, and/or supplies or inventory). 16. For a commercial, industrial, community facility or mixed -use project, how many employees will the project generate? ,s-,one, 17. For a mixed -use project, please indicate the percentage of all uses in the project in the following table. Table 5 Percentage of Uses in a Mixed -Use Project Type Square Footage Percentage Residential Office Eating Entertainment Retail sales Service Total III. INCENTIVES - What incentives are you applying for? Municipal Property Tax Abatements Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide III 5 years rl More than 5 years ❑Residential owner occupied ❑Residential Rental Property a Apartments (5 plus units) ❑ Commercial Development Fee Waivers All building permit related fees (including Plans Review and Inspections) Plat application fee (includinL concept plan, preliminary plat, final plat, short form replat) Zoning application fee ■ Board of Adjustment application fee n ■ n Demolition fee Lf Structure 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 community facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters xj Water (Meter Size l (No. of meters ) n Transportation Release of City Liens Weed liens C Paving hens ❑ Board up/open structure liens ❑ Demolition liens Revised July 22, 2010 4 FORT WORTH Application No. III. ACKNOWLEDGMENTS I hereby certify that the information provided is true and accurate to the best of my knowledge I hereby acknowledge that I have received a copy of NEZ Basic Incentives, which governs the granting of tax abatements, fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. I understand that the approval of fee waivers and other 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. B.J. Masters, President (PRINTED OR TYPED NAME) (HXUTHORIZED SIGNATURE) Please mail or fax your application to: City of Fort Worth Planning and Development Department 1000 Throckmorton Street, Fort Worth, Texas 76102 Tel: (817) 392-2222 Fax: (817) 392-8116 0/-07-73 (DATE) Electronic version 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 Us?&rrunci1 y Application No. ��� "Clin which NEZ? Q (i District Application Completed Date (Received Date): Confofin with Zoning? ❑ Yes No Type? E SF ❑ Multifamily 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? Y s E No Certified by If not certified, reason Referred to: (Economic Development [Housing Commercial Before NEZ 069 Yes Yes • Yes Yes Yes Yes n Yes U No n No ❑ No Revised July 22, 2010 f No o No o Industrial (J Community facilities (_J Mixed -Use After NEZ Ownership/Site Control L Yes L( No -1-31,0 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 liens • Paving hens • Order of demolition Date certification issued? El n Yes El Yes ❑ Yes f —) Yes Development nWater (Code F1TPW U No nNo UNo n No Family Size 1 2 3 4 5 6 7 8 ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES 80% of Median Income* $38,300 $43,750 $49,200 $54,650 $59,050 $63,400 $67,800 $72,150 Maximum Housing Payment Affordable for Individuals or Families at 80% of Median Income *Source: 2010 Fort Worth -Arlington PMSA HUD Income Guidelines S957.50 $1,093.75 $1,230.00 $1,366.25 $1,476.25 $1,585.00 $1,695.00 $1,803.75 • Exhibit 3 Phase I - Protect Description Construction of a new 16,800 SF pre-engineered metal building with a 30-foot eave height; and 3/12 pitched roof. The building will be fully protected with a fire alarm and dry -pipe fire suppression system. A new 6-inch reinforced concrete slab installed over a fully reconditioned pad of 8-feet (6-mil poly on 12-inch select fill over 7-feet of soil) with 8-inch carton forms under all grade beams The reinforced concrete grade beams will be constructed on reinforced concrete drilled piers into bedrock. • New 5-ton and 10-ton Bridge cranes in paint and assembly building. • New paint booths, scissor lift and conveyor and exhaust system for equipment. • Location of project is the southeast corner of the 2.755 acre location of 3500 S. Jennings Avenue, Lot 11R, Block 5, South Fort Worth Addition NCH WATER LINE D' wan WO EXISTING 10-INCH WATER LINE ' Im CD 0• fO icn CD to = 1 Ix 42' ID rnm Xt 4,0 Im CD Set I'• 5.N I n EXISTING i-INCH WATER LINE I II 8-INCH FIRE LINE 4..._ xC 101'-8• L-------------- 20' ALLEY HEMPHILL STREET (80' RIGHT-OF-WAY) NOOD00'00'W 500.00' — — — — — b SOOD00'00•E 500.00' NOOD00'00•W 706.00' II II I II I II I SOOD00'00•E 708.00' South Jennings 274'J' EXISTING 10-INCH WATER LINE — _p Iz m 0 0 0 0 to 0 m IA 0 20' ALLEY 1 \NN 0 0 St• e. z 0 • co m10 v 0 1 z S O V/ 0I II o m D mi .0-106-.1 '31Y3S M&C Review e I 0 o exas OUNCIL `>GENDA FORT WORTI� COUNCI ACTION: Approved on 81612013 DATE: 8/6/2013 REFERENCE NO.: CODE: C TYPE: SUBJECT: C-26380 NON - CONSENT LOG NAME: 17NEZ3500SJENNINGS PUBLIC HEARING: NO Authorize Five -Year Tax Abatement Agreement with Matrix H&S Realty LLC, for the Construction of a Paint and Assembly Plant Building at 3500 S. Jennings Avenue in the Hemphill/Berry Neighborhood Empowerment Zone (COUNCIL DISTRICT 9) • RECOMMENDATION: It is recommended that the City Council authorize a five-year Tax Abatement Agreement with Matrix H&S Realty, LLC for the construction of a Paint and Assembly Plant building at 3500 S. Jennings Avenue in the Hemphill/Berry Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Matrix H&S Realty, LLC (Property Owner), is the owner of the property described as Lot 11 R, Block 5, South Fort Worth Addition, an Addition to the City of Fort Worth, Tarrant County Texas, according to the Plat recorded in Volume 388-184, Page 17, Plat Records, Tarrant County Texas, 3500 S. Jennings Avenue, Fort Worth, Texas, 76110. The property is located within the Hemphill/Berry Neighborhood Empowerment Zone (NEZ). The Property Owner is planning a multi -phase remodel and expansion of the property. Phase I is to invest an estimated amount of $1,870,993.00 to build a new 16,800 square foot Paint and Assembly Plant (Project). The Housing and Economic Development Department reviewed the application and certified that the Project met the eligibility criteria to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and 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 2014. At this time, Tarrant Appraisal District has the improvements on the property which includes several buildings valued in the amount of $578,039.00. The owner has demolished the existing building on the property so the pre -improved value for tax abatement purposes will be in the amount of $469,260.00. The Municipal Property Tax Abatement on the improved value of the Project after construction is estimated in the amount of $15,996.99 per year for a total amount of $79,984.95 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. In the event of a sale of this property, the Tax Abatement Agreement may be assigned to an affiliate without the consent of the City Council or to a new owner with City Council approval, only http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18131 &councildate=8/6/2013 [10/26/2013 2:18:26 PM] M&C Review if the new owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives. This property is located in COUNCIL DISTRICT 9. FISCAL INFORMATION/CERTIFICATION: The Financial Management Services Director certifies that this action will not increase the total appropriations of City funds. TO Fund/Account/Centers Submitted for City Manaaer's Office bvv Originatina Denartment Headt Additional Information Contact: ATTACHMENTS 3500 S Jenninas-Man for Council.odf Elevations -Floor Plan and Master Plan.odf FROM Fund/Account/Centers Fernando Costa (6122) Cynthia Garcia (8187) Robert Sturns (8003) Sarah Odle (7316) http://apps.cfwnet.org/council_packet/mc_review.asp?ID=18131&councildate-8/6/2013[10/26/2013 2:18:26 PM]