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HomeMy WebLinkAboutContract 55498.� ��� ��CRt��'l���" �����. �,� y r^.�f � J t��''c�ar� ��C.1'. � �� ,. �_, �.TAx ��ATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD ��� V EMPOWERIVIEI�IT ZONE UAh .. .. _v i :Y�F�gr��i'I�". - F .. �00� Parker Henderson Road This TAX ABATEMEl�TT AGREEME�iT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation arganized c�nder the laws of the Siate of Texas and actir�g by and through David Cooke, its du�y authorized City Manager, and Granite (Village Cree�C) LLC, ("Owner"} of property located at 5005 Parker Henderson Road, Abstract 104, Tract 4, MJ Brittain Survey, in the Ciiy of Fort Worth, Tarrant County, Texas as recorded in Volume 10128, Page 2303, Deed Records af Tarrant County. The City Council of the City oi Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. On January 29, �019 the Fort Worth City Counci� adopted Ordinance Na. �3��2 (the "Ordinance") establishing "Neighborhood Empowermeni Reinvestment Zones No.1R through GR" City of Fort Worth, Texas (the "Zones") and adopted Resolution No. 50�� establishing "Designation of the Neighborhood Empowerment Zone Areas One through Six" (the "NEZ"}. B. Owner owns certain real property located entirely within Zone 6R and thai is mare particuiarly described in Exhibit "1", attached hereto and hereby made a part of this Agreement for alI purposes (the "Premises"). C. Ownar or its assigns plan to construct the Required Improvements, as defined ir� Section 1.1 of this Agreement, on the Premises (ihe "Pra,�ect"). D. On October 20, 2020, Owner submitted an application for tax abatement to the City concerning the Premises (the "A�aplica�ion"), attached hereto as Exhibit "2" and hereby made a part of this Agreement for all purposes. E. The contemplated use of the Premises, the Required Improvements and the terms of tl�is Agreement are consistent with encouraging development oi the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Ordinance and oiher appficable laws, ordinances, ruies and regulations. F. Written notice that the City intends to enier 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 u��its in which the Premises is located NOW, THEREFORE, the City and Owner, for and in consideration af the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: Page 1 of 13 NEZ Tax Abatement with Granite {Village Creek) LLC, 5005 Parker Henderson �oa� Approved by M&C 21-0001, Febriaary 16, 2021 ��'��� ����Q ... .. �°� 1. OW1�iER'S COVE1vA1�TTS. 1.1. Real Pronertv Improvements. Owner shall construct, or cause to be construcced, on and within the Premises certain impravements consisting of an industrial building for the distribution of retaiI goods and light manufacturing; having Construction Costs, excluding land, upon completion of $19,842,000.oa inc�uding site development costs {collectively, the "Required Improvements") but such Construction Costs shaIl be reduced by ar�y construction cost sa�ings. The type, nramber and details of the Reyuired Improvements are described in E�ibit "3". After construction oithe Required Improvements is co�nplete Owner shall provide a copy of the fir,al construction invoices to City. The invoices shali then be attached and rnade a part af this Agreement and shall be Iabeled Exhibit "4". Minor variations, and more substantiat variations if approved in writing by both of the parties to this Agreement, in the Required Improvements from the description provided in Exhibit "3" shall not constitute an Event oi Default, as defined in Section 4.1, pravided that the conditions in the first sentence of this Section 1.l are met and the Required Improveme�ts are used for the purposes and in the manner desceibed in E�ibit "3". 1.�. Construction Costs. "Constructio� Costs" shall mean site develop�nent costs {including demolition and environmental abatement), hard canstruction costs; contractor fees; engineering fees; architecturat fees; design and consulting fees; and development fee and permitting fees expended by Owner directly in connection with canstruction of ihe Required Improvements. The City recognizes that Owner will request bids and proposals from varioUs contractors in arder ta abtain the lowest reasonable price for the cost of the Required Improvements. In ihe event that bids and proposals for the Required Improvements are below $19,842,000.04 in Construction Costs for work substantially the same as that provided in Exhibit "3" and otherwise described in this Agreement, the City wili meei with Owner to negotiate in good faith an arnendment to this Agreement so that Owner is not in default for its iailure to expend at least $19,8�2,000.00 in Construction Costs, with the understanding that the City's staff will recommend, but cannot guarantee, approval af such amendment by the City Council. The final site plan shall be in substantially the same form as the site plan submitted and attached as Exhibit "3". Minor variations, and more substantial variations if approved in writing by both parties to this Agreement, in the Reyuired Improvements from the description pro�ided in the Application for Tax Abatement shali not constitute an Event of Default, as defined in Section 4.1, provided that the conditiorts in the first sentence af this Section l.] are met and the Required Improvements are used for the purposes and in the manner described in Exhibit "3". 1.3. Completion Date of Required Improvements. Owner covenants to complete construction af all of the Reauired Improvements within two years from the date of Council approval of the tax abatement. The abatement will automatically terminate two years after Council appraval if a building permit has not been pulled and a foundation has not been poured, unless delayed because af force rnajeure, in which case the two-years shall be exte�ided �y the n�mber of days comprisin� the specific Page 2 of 13 NEZ Tax Abatement with Granite {Village Creek) LLC, 5045 Parker Henderson Road Approved by M&C 2 I-000 i, February 16, 2021 force majeure. For purposes of this Agreemeni, force majeure shaIl mean an event beyond Owner's reasonable contro�, including, withaut limitation, delays caused by adverse weather, deiays in receipt af 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 shorta�es as determined by the City of Fort Worth in its sole discretion, which sha11 not be unreasonably withheld, but shall not include construction delays caus�d due to purely financial matters, such as, withouE limitation, delays in the obtaining of adequate financin�. 1.4. Use of Premises. Owner covenants that the Reyuired Improvements shall be constr�►cted and the Premises shal� be continuously used as an industrial building for the distribution of retail �oods and light manuiacturing and in accordance with the description of the Project set forih in the Exhibit "3". In addition, Owner covenar�ts that throughout the Ternn, the Required Improvements shall be operated and maintained for the purposes set forth in ihis Agreement and in a manner that is consistent with the general purposes of encoura�ing development ar redeveloprnent of the Zone. 2. ABATEMENT AMOUNTS, TERMS A1�TD CONDITIONS. Subject ta and in accordance with this Agreement, the City hereby grants to Owner real property tax abatement on the Premises, the Required linprovements, as specifically provided in this Section 2(�iAbatemenY'}. Abatement of real property taxes only includes City of Fort Worth- imposed taxes and not taxes from ather 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 Required Improvements over t�eir values as determined by TAD in December 2020, and this amount is $0.00: One Hundred percent {100%} of the increase in value from the construction of the Required Improvements. If the square footage requirement and ihe appraised value of the Required Improvements are Iess than as provided in Section L1 of this Agreement, except that such minimum constractinn costs shali �e reduced by construction cost savin�,s, Owner s�all not be eligible to receive any Abatement under this Agreement. 2.2. Increase in Vatue. 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 fiaxes on the land, nor shall the abatemettt apply to mineral inierests. Page 3 of 13 NEZ Tax Abatement with Granite (Village Creek) LLC, 5005 Parker Henderson Road Approved by M&C 21-0OQI, February 16, 2021 2.3. Abatement Limitatian. Notwithstanding anything that may be interpreted to the contrary in this Agree�nent, Owner's Abatement in any given year shall be based on the increase in value of the Required Improvements over its va�ue in December 2020, up to a maximum of $29,7b3,000.00. ln oiher words, by way of example only, if the increase in value of the Required Improvements over its value in December 2020, in a given year is $30,Oa0,000.QU, Owner's Abatement for that tax year shail be capped and calculated as if the appraised value of the Required Irnprovements for that year had only been $29,763,000.00. 2.4. Protests Over_Apprai_sa�s or Assessments. Owner shall have the right to �ratest and contest any or all appraisals or assessmer�ts of the Premises and/or improvements ihereon. �..�. Term. The term of the Abatement (the "Term") shall begin on January 1 oi fihe year following the calendar year in which a�ina1 certificate of occupancy is issued for the Required Improvements {"Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5`h) anniversary of the Beginning Date. 2.6. Abatement Anplication Fee. The City acknowledges receipt from Owner of the required Abatement application fee of one half of one percent {.5%) af Project's estimated cost, not to exceed $2,Od0. The application fee shall noi be credited or refunded to any party for any reason. 3. RECORDS. AUDITS AND EVALUATION OF PROJECT. 3.1. Inspection af Prem�ses. Between the execution date of this Agreement and the last day of the Term {"Campliance Auditing Term"), afi any time during normal office hours throughout the Term and the year followin� 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 campliance 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 sha�l have the right to audit at the City's expense ihe financial and business records of Owner that relate to the Project and Abatement teims and conditions {collectiveiy, the "Recards") at any time during the Compliance Auditing Term in order ta determine compliance with this Agreement and ta calculate the correct percentage of Abatement available io Owner. Owner shall make all applicable Recards available to tl�e Page 4 of 13 NEZ Tax Abaiement with Granite (Village Creek} LLC, S4QS Parker Henderson Raad Approved by M&C 21-0001, February 1 b, 2021 City on the Premises or at another Iocation 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 l following the end of every year during the Carnpliance Auditing Term and if requested by the City, Ovvner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of tl�is Agreement For that calendar year. This information shall include, but not be Iimited to, the number and dollar amounts of all construction contracts and subcontracts awarded on the Project. Owner must also provide documentation of compliance ta Tarrant Appraisal District (TAD) each year of the abatement by filling out and returning Tax Abatenaent Form 50- 116 from the TAD website no iater than April 30th for each year Owner is requesting tax abatement. Failure to provide all infvrmation within the control of Owner �equired by this Section 3.3 shall constitute an Event ofDefautt, as de�ned in Section 4.1. 3.4. Determination of Comqliance. On or before August 1 of each year during the Compliance Auditing Term, the City shall make a decision and rale on the actual annual percentage of Abatement available to Owner far the following year of the Term and shail notify Owner of such decision and rulin�. The actual percentage of the Abatement granted for a given year of the Term is therefore based upan Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auaiting Term. 4. EVENTS OF DEFAULT. 4.1. Defned. Unless otherwise specified herein, Owner shall be in default of ihis 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, ar its ad valorem taxes with respect to the tangible personal property lacated on the Premises, become delinyuent and 4wner does nat timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes ar(iii) OWI�TER D4ES NOT COIVIPLY WITH CHAPTER i AI�D APPElvDIX S OF THE CODE OF ORDINAl�iCE OF THE CITY OF FORT WORTH (collectively, each an ��Event of Default"). 4.�. i�iotice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a w�•itten notice to Owner that describes the nature of the Event of Default. Page5of13 NEZ Tax Abatement with Granite (Village Creek) LLC, 5005 Parker Hendersan Road Approved by M&C 21-0001, February 16, 2421 Owner shall have sixty (60} calendar days from the date oi receipt of this written notice to fully cure or have cured the Event of Deiault. If Owner reasonably believes that Owner will require additional time to cure the Event of Default, Owner shall promptly notify the Ciry in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and inteni 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 Deiault, after advising the City Council in an open meeting of Owner's efforts and intent ta cure, such additional tixne, if any, as may be oifered by the City Cauncil in its sole discretian. 4.3. Ternnination far Event of Default and Pavment of Liquidated Da�a�es. ]f an Event of Default, which is defined in Section 4.1, has not been cured within the time frarne speci�cally allowed under Section 4.2, the City shall have the right to terminaie tlais 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) reyuire unp�anned and expensive additional administrative oversight and involvemenfi by the City; and {iii) otherwise harm the City, and Owner agrees that the amounts of actual damages there from are speculativ� in nature and will be difficu�t or impossi�le to ascertain. Therefore, upon termination of this Agreement for any Ev�nt of Default, Owner shall not be eligible for the Abatement for the remaining Term and Owner shail pay the City, as liquidat�d damages, all iaxes that were abated in accordance with this A�reement for each year when an Event oi Defauii existed and which otherwise would have been paid to the City in tlie absence of this Agreement. The City and Owner agree ihat this amount is a reasonable approximation of actual damages that the City will incur as a result of an ur�cured Event of Default and that this Sectian �4.3 is intended to provide the City with compensation �or actual damages and is not a penalty. This amount may be recavered 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 arnount shall be due, owing and paid to the City within sixty (GO) days %llowing the effective date of termination of this Agreement. In the event thai all or any por�ion of this amount is not paid to the City within sixry (64) days following the effective date of termination of this Agreement, Owner shal� also be liab�e for all penalties and interest on any outstanding amount at the siatutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest. Notwithstanding anything herein to the contrary, damages due under this paragraph st�all be the sole responsibility of O�wner ar its permitted assignee, as app�icable. 4.4. Terminatian at Will. If the City and Owner mutually deterrriine 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 preferabte, the Ciry 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 Terrri shall expire as of the effective date of the termination of this Agree�nent; (ii) there shall be no recapture of any taxes previousiy abated; and (iii} neither party shall have any further rights or obligations hereunder. Page 6 of 13 NEZ Tax Abatement with Granite (Village Creek) LLC, 5005 Parker Henderson Road Approved by M&C 21-0001, February 16, 2Q21 4.�. Sexuallv oriented Business & Liquor Stares aw Package Stores. a. Owner understands and agrees the City has the right to tecminate this a�reement if the Project conta�ns or will contain a sexually ariented business. b. Owr�er understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Project cantains or will contain a liquar store or package store. �. EFFECT OF SALE OF PREMISES. Owner may assign this A�ree�nent and all or any portian af the benefits provided hereunder to Granite {Village Creek) LLC, or an Affiliate without the consent of the City, provided that (i) priar to or contemporaneously with the effectiveness of such assignment, Owner provides the City with written notice of such assignment, wHich notice shall include the name of the Affiliate and a contact nam�, address and telephone nurnber, and (ii) the Affiliate agrees in writing to assume all terms and conditians of Owner under this Agreement. For purposes of this Agreernent, an "Affiliate" means all entities, incorporated or otherwise, under common control with Owner, controlled by Owner or controlIing Owner. For purposes of this definition, "control" rneans fifty percent (SO%) or more of the ownership determined by either value or vote. Owner may not otherwise assign this Agreement or any of the benefts provided hereunder to another party without the consent af the City Council, which consent shall not unreasonably be withheid or delayed, provided that (i) the City Council finds that the proposed assignee is fi��ancially capable of ineeting the terms and conditions of this Agreement and (ii) the proposed assignee agrees in writing ta assume all terms and conditions of Owner under this Agreement. Any attempted assig�ament without the City Council's priar written consent shall constitute grounds for termination of this Agreement and the Abatement granted hereund�r following ten (10) calendar days of receipt af written natice from the Ctty to Owner. 5. NOTICES. All written notices called for or required by this Agreement shall be addressed to the folIowing, or such other party or address as either party designates in writtng, by certified mail, postage prepaid, or by hand delivery: City: City of Fort Worth Attn: City Manager 200 Texas Fort Worth, TX 76102 and Neighborhood Services Department Attn: Director 200 Texas Fort Worth, TX 76].02 Owner: Granite (Village Creek) LLC 3 T 02 Oak Lawn Avenue, Suite 544 Dallas, Texas 75219 Page 7 of 13 NEZ Tax Abatement with Granite (Village Creek) LLC, 5005 Parker Hendersott Road Approved by M&C 21-OOO l, February 16, 2021 '�. MYSCELLANEOUS. 7.L Bonds. The Required Improvements wiil not be financed by ta� increment bonds. This Agreement is subject to rights of holders of outstand'zng bonds af the City. '7.2. Conilicts of Interest. Neither the Premises nor any of the Requir�d Improvements covered by this Agreement ar� owned or leased by any member of the Czty Council, any member of the City Planning ox Zoning Commission or any member of the governing body of any ta�ing units in ihe Zone. 7.3. Canflicts Retween Documents. In the event af any conflict between the City's zoning ardinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulatians shall control. In the event of any conflict between the body of this Agreement and Exhibit "3", the body of this Agreement sha�l control. As of Febxuary ]6, 2021, the City is unaware of any conflicfis between t11is Agreement and the City's zon�ng oxdinance or other ordinances or regulations. '7.4. Future Applica�ion. A portion or a1I of the Pxexnises and/or Required Irnprovements may be eligible for complete or partial exemption from ad valorezx� i�es as a result of existing law or future Iegislation. This Agreement shall noi be construed as evzdence that such exemptions do not apply to the Pxez�nises and/or Required Improvements. 7.5. City CounciI Authoriza�ian. This Agreement was author�zed by #�13.e City Council thraugh approval Mayor and Council Coz�munication No. 21-0001 on �'ebruary 23, 2021, which, among other things, auihorized the City M�nager to execute this Agreement on behal� of tk�e City. 7.6. EstopueI Certificate. Any party hereto may request an estoppel certificate from another par�y hereto so long as the certificate is reque�ted in connection with a bona �de business purpose. The certificate, which if requested wi11 be addressed to the Owner, shall iz�c�ude, but not necessarily be limited to, statements �hat this Agr��ment is in full force and effect withauf de�aulf (or if an Event of Default exists, ihe nafure of the Event of Defaul� and curative action taken and/or necessary to effect a cure}, the rezx�aining term of this Agreement, the levels and remaining term of the Abate�nent in effect, and such ather matters reasonably requested by the party ox partzes ta receive the certificates. Page 8 of 13 NEZ Ta� Abatement with Granite {Vi�lage Creek) LLC, 5005 Parker Henderson Road A�proved bv M&C 21-0001, February 16, 2021 7.7. Owner Standing. Owner shaIl be deemed a proper and necessary party in any litigation questioning or challen�ing the validity of this Agreement or any of the underlying laws, ordinances, resolutions, or City Council actions authorizing this Agreement and Owner sha11 be entitled to intervene in any such litigation. 7.�. Ve�ue and Jurisdiction. This Agreement shali be construed in accordance with the laws o� the State of Texas and applicable ordinances, ruies, regulations, or policies of the Ciry. Venue for any action under this Agreemeni shall lie in the State District Court of Tarrant County, Texas. This A�reement is performable in Tarrant County, Texas. 7.9. Severabilitv. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the �alidity, iegality and enforceability of the remaining provisions shall not in any way be affected or impaired. '�.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 incorporafied herein by refere��ce, 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 conteinporaneous oral or written agreemen# is hereby declared null and void to the extent in conflict with any provision of' this Agreemeni. This Agreeroent 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 canstitute one instrument. (REMAINDER OF PAGE INTENTIONALLY BLANK) Page 9 of ]3 NEZ Tax Abatement wit� Granite (Village Creek) LLC, 5405 Parker Henderson Road Approved by M&C 21-0001, February lf, 2021 CITY OF FORT WORTH: By: -,�._-.� ' - Fernando Costa Assistant City Manager _�,�,,� ���`��3.�� ��y��y � , � � ATTE • �}����j ' �� � :`�°� .� Y �y�% • �� : � l � fJ I �p � �� ���y k'� �B � � � }� :r' -�, a`.t #A!� ' S� , ity Secretary � _ . � ; . APPROVED AS T� FORM AND LEGALITY: r; � � , -���' �, sy'.�1 I - � Melinda Ramos � Sr. Assistant City Attorney M & C: 21-0001 STATE OF TEXAS § COUIiITY OF TARRANT § GRANITE {V�LLAGE CREEK) LLC A Delaware �imited liability company By: vt� Na e Tit e: �� � � f �� � < < /: r / !�� �l , f�/ i'.__i � ,/_ BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistar�t City Manager of the CITY OF FORT WORTH, a municipal corporatian, knawn to me to be the person and offcer whose name is subscribed to the foregoing instrument, and acknow�edged 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 oi the City af �'ort Warth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in fihe capacity therein stated. GIVEN UNDER MY HAND �.�(.;C�!'��. , 2021. J �� �. otary Public in and or the State of Texas Npta� �t 7exas r�, t-3t•202k� � 422528 ��'����� ������ ,���`� ������i����� �.�s �'F� Page 10 of 13 NEZ Tax Abatement with Granite (Village Creek) LLC, 5005 Parker Henderson Road Approved by M&C 21-0001, February 16, 2021 AND SEAL OF OFFICE this '� day of STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on this day personally appeared �J � ���` , �'jV � of Granite {Village Creek) LLC, krtown to me to be the p rso�e name is subscribed to the foregoing instrument, and acknowiedged to me that he executed the same far the purposes and consideration therein expressed, in the capacity therein stated and as the ac# and deed of Granite (Village Creek) LLC. GIVEN UNDER MY HAND 1�� y C�- , 2021. � C��v1/L��.-� Notary Public in and for The State of Texas AND SEAL OF OFFICE this �� day of , - � __�� ~ ,.—� ALI JOHNSON ' + �.IVotary Public, StAte of %x�s "=���'� "�" Corr�m. Exp€res fl4-D4-2p21 .'�.���`, � , ,, ,a Notery tD 13107269-4 - �. STATE OF TEXAS § COUNTY OF DALLAS § BEFORE ME, the undersigned authority, on ihis day personally appeared �.P��,^� ��f b+r-�S j� S� YlnavtO�.c�✓� of Granite (Village Creek} LLC, known to me ta be the person whose na�ne is subscribed to t e foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of Granite (Village Creek) LLC. GIVEN UNDER MY HAND V�arC.I�-- , 2021. " `"� \ ( Notary Public i and far The State of Texas AND SEAL OF OFFICE this �� day of — ���"ir;,�'� �---_ —ALl JOHNSON � .�� • .Le ��i �a°� �: Notary Publio, Stat� ot Texas � ;.�'���= �= Cornm. �xpires Q4-p4-2D23 ''•%�°;,,�'` ►rot��y Ea �3�a�zss-a � ,�....�.._�__�_ - , 5�����,���. �������, : ��� ���;������Q �� ���`�'' „T,� Page I 1 of 13 NEZ Tax Abatement with Graniie (Village Creek) LLC, 5005 Par�Cer Henderson Road Approved by M&C 21-0001, February 16, 2021 Exhibit i : Property Description Exhibit 2: Application: (NEZ) Jncentives and Tax Abatement Exhibit 3: Project description Exhibit 4: Final Construction Invoices (to i�e attached after construction) Page 12 of 13 NEZ Tax Abatement with Granite (Village Creek) LLC, SOOS Parker Henderson Road Approved by M&C 2 i-0001, February 16, 202 i Exhibit Z Pronertv Description SQOS Parkej• Henderson Road, Abstract 104, Tract 4, MJ Brittain Survey, in the City of Fort Wor�h, Tarrant County, Texas as recorded in Volume 10128, Page 2303, Deed Records of Tarrant County. Exhibit 2 FORT'�ORTH. � Application# tV L�V� V�� City of Fart �orth Neighborhoad Empawertnent Zone (NEZj Application for Incentives _____ . .� � . � - --________.� �roperty Granite (VilJage Creek) LLC c/o Jon Sorg Owr�erlDeveloper Lasi Address: 3l 02 Oak Lawn A Street Address Phnne: Contact: (If dif,'f'erent) Phone: First Suite 54D Dallas _ __... _. Cii}, M.I. TX 75214 ��lale Zip 469-965-3350 _ �ma��� �isor�granitereit.cam Dve Rabert C. Last Fi� st M.I. 4b9.&77.�4I65 ���iI: ��ob,�rlwoadhave�de�elopment.com NEZ eertifications are project and owner speci�c. Please describe your project:a 605,441 square fooi cross-dock industrial Uuildin T far 1i�ht manufacturin� and lo�isfics uses. ^ Prpject Type ❑ ❑ ❑ X❑ ❑ ❑ Single Family Multi- Farnify Commercial ]ndustrial Community Facilities Mixed-Use *Please be a[fvised ififiepraject uddress is zo7led as a�fesigrta�srllristaricel property (HC) aftd your project cnrrsisls af �1e� consrructfon ar extertor renovdlrons, approvul oj'}�aurprojeet is requiredpriar ta NE,Z application subl�ritla! Wrlttett ar�r�rovul �rom llre Historic a�td Cul�ural Landnrarks Co�rnnissiorr (HCLC) rrrrrst be attached to the NEZ annliratian. FaP ques�ians or jurtlrer iiaforvnatlon coiteerning liislorir prafects, �rlease cant�rcl tfre HCLC at (81 �'J 39.2-8Q00* Project Address: 5005 Parker Henderson Road Sireet ,4ddress Legal Description: MJ Brittain Surve}�, Abstract No. 104, CiT3� of Fort Worth, Tarrant County, Texas Tract 1 and Trac# 2 Lo1 BIock Additra� YES NO YES NO I�tew Construc#inn / AdcEition: � ❑ Remodel / Rehab: ❑ ❑ Tatal Naw Sg. F#. bQS,�I�lI Total Develapment Cos#: 20,b98.060 For a single fan�ily pro,�ect, will t�he NEZ certi�ed properfy 6e oceu�ied by YES the pro�erty owner as a prirnary residence? ❑ NO ❑ If you selec#ed No, please specffy if tE�is property will be sold fo a homeowner as a primary residence or osed as rent'al property. If your pro,jeet is a Commerc�al or Mixad Use �roject, please list a11 speci�c uses that are being pro}�osed: V4�rareho�s�-�ht_tl�im�f.���ring, distrib�ation anc� fQgistics ---- YES NO Da yoa wish to apply for a Munecipa� Properfy Tax abatemsnt for this projeet? X� ❑ Iffhe ab�ve answer is yes, please contact the City of Fort Warth Neighbor#�ood Services Department at (&17) 392-7316 or visithitp:l/fori�vorfhtexas.�ov/neikhborhaodslNEZJ for additional information. Tax Abatements are �rocessed aftcr 1VEZ projact certifcatlon and must go bet'pre the City Couneit for a �ote. Hause Bil� 3143 took effect on September 1, 2UI9, which reyuires at least 30 days advance notice be given of ihe t-ax abatement. Due io eompliance with HB 31�3, the rninimum #ime ta �rocess a tax abateme�t to be on tite City Counci[ agenda for vo#e is I2 to 14 �veeks after the date of certification. �nnlicanis re��itestin.�.� tax abatement n�at� not subttrit �or a builr��n� pertnil until the qhrrfement_itas beerr a�prnved 6r� the Ci1�� Corr,rci! and tlte an�ricant lias sf��ned a coMtrRct. RaviSetl 1U118l16 SO � �'o�r �oRT � Application# d � ��b �" � � � � � City of Fort �orth IVeighborhood Empowerm�nt Zane (NEZ} AppIication for Incentives YES NO Do you �vish io apply far a rele�se of N�Z Poliey eligible City liens? ❑� Weed, Paving, Demnlition and Baard Up / Open Structure liens may be released for qi�alifying projec#s, --- -_._..__ _...__ _ . . oo - •s — YES NO Witl a Zoning Changa appIication be necessary for this project? ❑ � Currenf Zoning: Propose Iise: �� �+'�!� � � ������� Signatt�re ofZoniug S#aff: _.._._...--_-- . _ Date: _� � � �� - ---- -- -- � . � � � PLEAS� IMTIAL 1�EXT Ta EACH STATEMEI�T �� I understand that my applicatton will not be processed if it is incomplete. I agree to provide any additianal inforraaatio�s far de#ermining eligibility as requested by the City. lfthe additionai infarmation is nat submitted within 30 days, fhe applic�tion will be denied and applica#ion fees paid will not be reimbi�rsed. � I hereby certify thai ihe information provided is tr��e and accurate fa t�ae Uest of my knowledge. I heraby certify that all documents and infonnation rey�iired by the Applica#ion Submittal Checklist is attaohed. I hereby acknowledge that I ha�e read the NEZ $asic Incentir+es and Tax Abafement Policy, which govems #he granting tax abateme�ts, fee waivers and release of City liens, and that any V�OLATI�N of the terrns of the NEZ Basic Ir�centives or MISRE�RESENTATT�N shall canstitute grae�nds far rejeclion nf an applicatian or #erraination of incentives at the discretian of tiie City. � 1 understand that the appro�+aI of fee waivers and other incenfives sha11 nof be deemed to be approva� of any aspect of the pra�cef. I unde�•stand that I am responsible far obtaining required perrnrts and inspections iraztt the City a�d in ensuring t)ie project is located in the correct za»ing district. �I understand tha# if there are taxes due or liens against sny property � awn in the City of Fork Worth I may not be ligi ]e for NEZ incenfives. I herehy certify tha# the project plans submitted with il�is appIication meet the NEZ design guideline requirements as ' ed belnw or meet SYrcrte�ic Plarr �uidelirres 1'ar the Berr'Vhidl/hlasott Hei,��hts. Oakland Cnrrrer:s. and .Sl�� Six a�-eas as ozrtlir�ed an fhe NEZiveb��a.cye. i understand that if the project plans do nat �neet these design requirements, all parmits wilE be put on hold pending correetio�. If I choose to relinquish my NEZ certificatian instead of ineeting the design reguirements, paym�ent %r all fees waived by the City up to that point wsll be due immediately and the building p�rn�it w71 ��ot be issued ur�ti! . payment is made, a.No rt3eta] buildi�igs axcept for ind��striai prnjects. b.A1f new eonstrUction projects must cvntain 70%a �nasonry prodtict c. Exceptions to the masonry praduct will be made at the City's disc�•etion far design district averlays (where appJicable) and approved planned deve�opment prnjects. d.Compliance witl� NE2 desigr► guideiines for Council adopted NEZ St��ategic Plans (Bec•ryhill/Mason Heigt�ts, Oakland Corners $nd Stop Six) is req�ired for certi�cation. e.Attached garages �or new sin�le family homes may not extend more than 4 feet past the front building wall, 1 u��d�rstand that 1 rnusf pay aii assaciated fees at the time of project a�plication and]or permit submittal if I wish to � b if pern�its prior to deterinination oiNEZ eiigibility. This includes setting up an escrow account with the City. I understand that some permits may nof b'e issued while N�Z eligiUilit is being established. ample: Appiications that are requesting Tax A bafement. �t�t��i �_t����, I ruG_ _ F I��� /��aa � Name of (��'N► �'�... � vilf � C�i2e_�•� l�t-G ftevisad ifU16119 SO �afure of Pr erty Owne�lDeve uer ! ��w 7%• ���r' �"�� � �'S Exhibit 3 Proiect Descwiption • IndUstrial warehouse consfsting of approximaiely 605,441 square %et on 36.371 acres. • Warehouse shall be a 36' cIear, cross-dock facility with #wo {2) storefront entrfes, l l4 dock doors and four (4) drive-in ramps. • Warehouse storefronts shall be aluminum with insuiated glass. • Warehouse roof shall be a mechanically fastened 60-mil TPO o Construction shall be Type lI-B Construction of concrete load-bearin� walls with structural steel joists and deck supported by interior columns. 3/221202'I Cityof �ort WortF� - File #: M&C 21-0001 ,���#�f� ;� t Home Legislation Calendar Details Reports File #; Ty�e: File �reated� On agenda; Ti�e: Aitachments: Fiis#ory {2) 2 recards Date 4 1/12/20Z1 2�23/2021 City CounciE Departments i�i i.� l[!��_�.;fiar�� !_.��� i,.. _�,I�rts I M&C 21-QOOi Version: 1 Name: Award of Contract - Report of CM Status: Passed �-/�/��2� �n control: C1TY COUNCTL 2/26/2021 �inat action: 2/23/202i {CD 5) Authorize Executian of a Five-Year Tax Abaternent Agreement with Gl�anite Village Creek, 11C, for the Construction of an Industrial Warehouse Building with a Total of Approximately 6a5,441 Square Fee� for the Disi�ibution of R�tail Goods and Light Manufa�uring, having a Cost of at Least �19,842,000.00 or� Property Located at �005 Parker F�lenderson Road in Neighborhood Empowerment Zone and Reinvestment Zone Six {Continued from a Pre�ious Meeting) 1. M&C 21-000�., 2. Map fo. Counci! 5005 Parker i-�enderson.pd ,r 3. Pians for Counc;i.pdf TexE Group Export Ver. Action By 1 CITY COUNCIL 1 C1TY COUNCIL Action Continued Appraved Result Action Details Meeting Details Video Action de��ls Meeting details Not available Action details Meeting details ���'� Vi'deo i https:llfortv�rorthgoulegisiar.comlLeg i slationDetai I.aspX?�D �4745577&GU ID=808BFOB&A95B-442C-908�78AD 078966D D 'f19 City of Fort Worth, I�ayor and DATE, 0111212'f Texas Council Gommu�ica�ion M&C FILE NUMSER: M&C 21-Q001 LOG I�AM�: 'f9N�Z5005PARKERMENDERSON SUBJECT {CD 5) Authorize Execution of a Five-Yea� Tax Abatement AgreeTnent wifh Granite Villaga Creek, LLC, for ihe Construc#ion af an lndustrial Warehouse �uilding with a Total of Approximately 605,444 Square Feet for the Distribuiion of Retail Goods and Light Manufacturing, ha�ing a Gost of at Least $19,842,ODOAO on Property Located ai 5005 Parker Hendersan Road in iVeighborhooc! �mpowerment Zone and Reinvestm�nt Zone Six (Continued from a Pre�ious Meefing) RL�COMMENDATION: It is recammended that the City Council autharize ihe executian of a five-year i"ax Abatement Agreement with Granite Village Creek, LLC, for the consfruc#ion of an industrial wareF�ouse building with a tota� of approximately 605,441 square feet for the distribution of retail goods and light manufacturing, having a cost of at least $19,842,000.00 on proper[y �ocated at 5005 Parker Henderson Road in Neighbarhood Empowerment Zon� and Reinvestment Zone Six, in accordance wifh tF�e Neigh�orhood �mpowerment Zone Tax Abatement Policy and Basic �ncentives. DISCUSSION: Granite Viliage Creek, L.�.0 (ProperEy Owner} is the owner of the properLy described as Abstract 104, Tract 4 MJ BrittaEn Survey, in the Cify of Fort Wo�h, Tarrant County, Texas, as recorded in Volume 10128, Page 2303, Deed Records of Tarrant County, Texas at 5005 Parker Fier�derson Road, Fort Worth, Texas. The properky is iocated ir� Naighborhood Empowerment Zone �NEZ) Area Six. The Property Owner plans to invest an estimated amounf of $19,842,000.00 to construct an indusirial builc�ing for the distributian of retail goods and IigF�t manufacturing with a total of approximafely 605,441 square feef (f'roject). The Neighborhood Services Department reviewed the ap�lication and certified that the Property Owner and Project met the e�igibility criteria to receive a NEZ Municipaf Property Tax Abatement. 7he NEZ Basic Incentives includ�s a five-year Municipal Properly Tax Abatement on the increased vaiue of improvemenfs to the qualified owner of any new construction or rehabiEitation within the NEZ. Upon execution of the Tax Abatement Agreement (Agreement), the total assessed value of th� impro�ements used for calculating municipal praperty tax wifl be froz�n for a period of five years starting January 2022 at the estimated pre-improvement value as defined by the Tarrant Appraisal C]istrict (TAD) in November 2020 the property as fol�ows: Pre-]mprovement 7'AD Value of fmprovements $ OAO Pre-Impro�ement �sfimated Vafue of Land $575.700.00 Toial Pre-lmprovement Estimateci Value $Si5,700.�0 The municipal properiy tax on the improved value of Project af#er construction is estimated in th� amount of $148,318.95 per year for a#otal amoun# of $74� ,594.75 over the five-year period. However, this estimate may differ from t�e actual tax abaterrtenf vafue, which wil] be calcuiated bas�d on the 7Ab appraised value of the property. The Agreement may be assigned to an affiliate of the Property Owner without formal consent af the City Council. lf the property is so�d ta a new owner, other fhan an afFiliate, the Agreement may be assigned onfy with City CouncEl appro�al and provided that the new owner meets all of the eligibi�ity criteria as stated in the NEZ Tax Abatem�nt Policy and Basic incentives. This praperty is locafed in COUNCIL D15TRICT 5. FISCAL INFORMA'�ION 1 CERTIF1CAi'IOH; The Director of Finance cerkEfies that upon final approval of the Tax Abatement Agreement, a Ioss of an estimated $7�41,594.7� in property tax revenue may occur over the next five year period. This reduction in revenue will be incorporated into the long term financial forecast upon the Tax Abafement being officially granted. S�bmitted for Cit Mana er's Office h: Fernando Costa 6'E22 Originating Business Unit Head: VictorTumer $187 Additional Information Conkact: Sarah Odle 7316