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HomeMy WebLinkAboutContract 57139 h PR J-)�X ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD crryor EMPOWERMENT ZONE CI1yS CCpE7q ,frr'y 4809 Miler 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 David Cooke, its duly authorized City Manager, and WAFA BUSINESS, LLC-MILLER AVE, ("Owner") of property located at 4809 Miler Avenue, Block 7, Lots 2 and 3, Couch Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorded in Volume 388-G, Page 3, Plat Records, Tarrant County. The City Council of the City of Fort Worth ("City CounciP') hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. On January 29, 2019 the Fort Worth City Council adopted Ordinance No. 23552 (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zones No.1R through 6R" City of Fort Worth, Texas (the "Zones") and adopted Resolution No. 5042 establishing "Designation of the Neighborhood Empowerment Zone Areas One through Six" (the "NEZ"). B. Owner owns certain real property located entirely within Zone 6R and that is more particularly described in Exhibit "l", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). C. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises(the"Project"). D. On July 7, 2021, 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. r E. The contemplated use of the Premises, the Required Improvements and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Ordinance and other applicable laws,ordinances, rules and regulations. F. Written notice that the City intends to enter into this Agreement, 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: OBI CIAL RECORD MY SECRETARY FT. WORTH,TX Page 1 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 L 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 an interior and exterior remodel of an existing commercial building of approximately 4,300 total square feet for use as an a Shopping Center with office, restaurant and retail space and having Construction Costs, excluding land, upon completion of $457,000.00 including site development costs (collectively, the "Required Improvements") but such Construction Costs shall be reduced by any construction cost savings. The type, number and details of the Required Improvements are described in Exhibit "3". After construction of the Required Improvements is complete Owner shall provide a copy of the final construction invoices to City. The invoices shall then be attached and made 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 Exhibit "3" 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"3". 1.2. Construction Costs. "Construction Costs" shall mean site development costs (including demolition and environmental abatement), hard construction costs; contractor fees; engineering fees; architectural fees; design and consulting fees; and development fee and permitting fees expended by Owner directly in connection with construction of the Required Improvements. The City recognizes that Owner will request bids and proposals from various contractors in order to obtain the lowest reasonable price for the cost of the Required Improvements. In the event that bids and proposals for the Required Improvements are below $457,000.00 in Construction Costs for work substantially the same as that provided in Exhibit "3" and otherwise described in this Agreement, the City will meet with Owner to negotiate in good faith an amendment to this Agreement so that Owner is not in default for its failure to expend at least $457,000.00 in Construction Costs, with the understanding that the City's staff will recommend, but cannot guarantee, approval of 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 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 1131' . 1.3. Completion Date of Required Improvements. Owner covenants to complete construction of all of the Required Improvements by January 11, 2024, (the "Completion Deadline"). The abatement will automatically terminate two years after Council approval if the Required Improvements are not complete. The Required Improvements shall be deemed complete upon the issuance of a final certificate of Page 2 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 occupancy for the Required Improvements by the Development Services Department. If the Owner fails to expend at least Four Hundred Fifty Seven Thousand Dollars ($457,000.00) in Construction Costs for the Required Improvements by the Completion Deadline as provided in Section 1.1 of this agreement; the City shall have the right to terminate this Agreement by providing written notice to the Owner without further obligation to the Owner hereafter. 1.4. Use of Premises. Owner covenants that the Required Improvements shall be constructed and the Premises shall be continuously used as a shopping center with office, restaurant and retail space, and in accordance with the description of the Project set forth in the Exhibit "Y. 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 Required Improvements over their values as determined by TAD in December 2021, and this amount is $155,407.00: 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, nor shall the abatement apply to mineral interests. Page 3 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 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 Required Improvements over its value in December 2021, up to a maximum of$685,500.00. In other words,by way of example only, if the increase in value of the Required Improvements over its value in November 2021, in a given year is $700,000.00, Owner's Abatement for that tax year shall be capped and calculated as if the appraised value of the Required Improvements for that year had only been$685,500.00. 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. 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 ("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 Page 4 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 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 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. Owner must also provide documentation of compliance to Tarrant Appraisal District (TAD) each year of the abatement by filling out and returning Tax Abatement Form 50- 116 from the TAD website no later than April 30th for each year Owner is requesting tax abatement. 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 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 Page 5 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 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 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 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. Notwithstanding anything herein to the contrary, damages due under this paragraph shall be the sole responsibility of Owner or its permitted assignee, as applicable. 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. Page 6of13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 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 PREMISES. Owner may assign this Agreement and all or any portion of the benefits provided hereunder to WAFA BUSINESS, LLC-MILLER AVE, or an Affiliate without the consent of the City, provided that (i) prior 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 name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and conditions of Owner under this Agreement. For purposes of this Agreement, an "Affiliate" means all entities, incorporated or otherwise, under common control with Owner, controlled by Owner or controlling Owner. For purposes of this definition, "control" means fifty percent (50%) or more of the ownership determined by either value or vote. Owner 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 Owner under this Agreement. Any attempted assignment without the City Council's prior written consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten (10) calendar days of receipt of written notice from the City to Owner. 6. NOTICES. All written notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand delivery: City: Owner: City of Fort Worth WAFA BUSINESS, LLC-MILLER AVE Attn: City Manager Attn: Mohammed Wafayee 200 Texas 7203 Rustic Rock Rd. Fort Worth, TX 76102 Arlington, TX 76001 and Neighborhood Services Department Attn: Director 200 Texas Fort Worth, TX 76102 Page 7 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 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"3",the body of this Agreement shall control. As of January 11, 2022, the City is unaware of any conflicts between this Agreement and the City's zoning ordinance or other ordinances or regulations. 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 Mayor and Council Communication No. 22-0011 on January 11, 2022, 2021, 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, 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. Page 8 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 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. (REMAINDER OF PAGE INTENTIONALLY BLANK) r Page 9 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 CITY OF FORT WORTH: WAFA BUSINESS,LLC-MILLER AVE A Texas limited liability company BY: Gk�--- By: Fernando Costa Name: Mohammad I. Wafayee Assistant City Manager Title: Manager ATTES By: a Ci Secretary ` Jannette Goodall APPROVED AS TO FORM AND LEGALITY: By: Melinda Ramos Sr. Assistant City Attorney M& C: 22-0011 OFNCIAL F RECORD ETARY TH, TX Page 10 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11,2022 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal corporation, that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Fort Worth and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of ,rbr 52022. Notary Public in and for SELENA ALA the State of Texas =� ;;,�°+'_Notary Public.State of Texas Comm. Expires 03-31.2024 Notary ID 132422528 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Mohammad I. Wafayee, Manager of WAFA BUSINESS, LLC-MILLER AVE, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, in the capacity therein stated and as the act and deed of WAFA BUSINESS, LLC-MILLER AVE. IVEN UNDER MY HAND AND SEAL OF OFFICE this day of 2022 Notar blic in and The State of Texas SAPAH J ODLE Notary ID#6215320 N� a My Commission Expires rfov��' November8, 2023 OFF FOCIAL RECORD rMY SECRETARY T WORTH,TX Page 11 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 Exhibit 1: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Project description Exhibit 4: Final Construction Invoices (to be attached after construction) Page 12 of 13 NEZ Tax Abatement with WAFA BUSINESS, LLC-MILLER AVE, 4809 Miler Avenue Approved by M&C 22-0011, January 11, 2022 Exhibit 1 Property Description 4809 Miler Avenue, Block 7, Lots 2 and 3, Couch Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat thereof recorded in Volume 388-G, Page 3, Plat Records, Tarrant County. Exhibit 2 ORT WORTH. Application# NZ21-01105 City of Fort Worth Neighborhood Empowerment Zone (NEZ) Application for Incentives Property r 1 Owner/Developer VIA--F—A ?�,o s i tX,55 U..-c-, Ave, Address: �2 0� �V-5'1"i t; �L'�, ROAD ArJtf14�11)+ `� -7 C0 i Street Address City t State Zip Phone: C?"" r Email: �/ y lt�!l i'S Q_y Q Y)Q Q L66) Contact: { c P1 i I �. ))er 1z (If different) Last First rM.L Phone: V�b ll- 7-90-9 7 5+ Email: E)CA!i �. �"�r atJ� ° aI M. e e r, ;;y;'-,re.,,a.'u}f�—;yfi7,,,,r.�•�L NEZ certifications are project and owner specific.Please describe your project: Existing car wash with bays will be remodeled into a Commerical building with 5 tenants Project Type ❑ ❑ ❑ ❑ ❑ Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use 'Please be advised if theproject address is zoned as a designated historical prope►V(HC)and yourproject consists of new constracdon or exterior renovadons,approval of your project Is required prior to NEZ application submittal, Written approval fi oni the Historic and CultardlLandn:arlis Contntission(NCLO must be attached to the NEZ application. For questions or furilter Information concerns((: historic rojecis,please'contact the HCLC at(817) 92-8000* Project Address: 400�( i I, VG �:�c' 04k. Street Address Legal Description: ., 6 -3 t V�'1." nD t`'r'I Lot T Block Addition f YES NO YES NO N�ew�Construction/Addition: ❑ Remodel/Rehab: ❑ ❑ Total Now-Sq.Ft. 4, �U� Total Development Cost: For a single family project,will the NEZ certified property be occupied by YES NO the property owner as a primary residence? ❑ ❑ If you selected No,please specify If this property will be sold to a homeowner as a primary residence or used as rental property. If your project is Commercla r Minced Use project,please list /Jall `spell ses tl;at are being proposed: fie- 1"1'.•�`"�a �. e.i� i YES NO Do you wish to apply for a Municipal Property Tax abatement for this project? ,� ❑ If the above answer is yes,please contact the City of Tort Worth Neighborhood Services Department at(817)392.7316 or visit http://fortworthtexas.govhyeiahborlioods/NEZ/for additional information.Tax Abatements are processed after NEZ project certification and must go before the City Council for a vote.House Sill 3143 tools effect on September 1,2019,which requires at least 30 days advance notice be given of the tax abatement.Due to compliance with RB 3143,the minimum time to process a tax abatement to be on the City Council agenda for vote is 12 to 14 weeks after the date of certification. Applicants reasesdng tdx abatement may not submit for a building permit until the abatement has beer:approved by the City Council and the applicant has signed a contract._ Rovised 10110110 80 FORT WORTH. I# Application# NZ21-oleos City of Fort Wortlt Ncigltborhood Enipowerment Zone (NEZ) Application for Incentives YUS NO Do you n•Ish to apply for a release of NEZ Policy eligible City liens? ❑ X Weed,Paving,Demolition and Board Ilp/Open Structure liens may he released for qualifying projects. YES NO Will a Zoning Change application be necessary for this project? (� �j� ❑ � Current Zoning: \, E— II Use"i I � , Signature of 7nming Staff.- vtpv n Date; 1 PLE SE 'I A H ST TEI1 ENT I understand that my APPItcationuill no be processed if it iS Incomplete.i agree to provide any additional information for determining eligibility as requested by the City.If the additional information Is not submitted within 30 days,the application will be denied and application toes paid will not be reimbursed. L2 I het'eby cerdf),thin the information•provided is tn►e and accurate to The best of lily knowledge. /I'1 u J I hereby cenity that till documents and Information required by the Application Subnidttal Checklist is attached. r `...,1 I hereby acknowledge that I have road the NEZ Basic Incentives and Tax Abatement Policy,which governs the granting or tax abatements,ice waivers and release of City liens,and that any VIOLA PION of the terms of the N L•'Z Basic lnccntivcs Or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. JLL W 1 understand that the approval of fee.waivers and other incentives shall not be deemed to be approval of ally aspect o rite project, I understand thut I all,responsible for obtaining required permits and inspections from the City and in ensuring the p o'ect is tocatcd in the correct zoning district. I understand that if there are taxes due or liens against any property I own In the City of'Fort Worth 1 may not be eligible I)'or NRZ ineetttives, �-("UE herahy certify that the project plans submitted with this application meet the V UZ desi listed below or meet •c c� 'c Pia �rl a i) r•• •Ill. 11/Ib .c bn guideline requirements as orrr/brat/a,,t�„ F7 t,uhyrr c, [understand that if thu project plans do oar arced these design requirements.all permits will be r" r Slr� S'� n-ens r Put on hood pending aivccby ti If 1 choose to relinquish ntY NCZ certification instaad of moetinu rho design requirements. Payment for 811111008 waived by the City up to that point will be dais itntnedlately and the building permit will not be issued until Payment is made. A.No metal bullclings except for htdustrial projects.b•All new construction projects must contain 70%masonry product u.Exceptions io the masonry product will be,made nt the City's discrotion for design district overly and approved planned dovclopntont projects.d•Gomplianoc with NEZ design )s(where applicable) s requincs 1'or Council adopted N6Z Stttuet�ic Plana i[ierryhill+Vinson Hci�, Oakland Corners and Slop Six)is recruited for Colication. c,Attached garages for new single family homes tray not extend more than 4 feet its, I understand that I trust pay all associated Coos at the tithe o past the front building tv;tll. din permits prior to deterrnininlott of NEZ eligibility.This includes setting up nn escrow accoun t tint SOftte permits stay not be 1Rsucti vh116 T 7,eligi ili y is bcinb esta�l shed Fria tttion and/or permit submittal if! witih to Abntentent. a ` t with the City.I understand f /i e Y)2��-, Ll.(� 'rltl0. ' pplieutiot�that are requesting Tax PHI led Name of Property < Uwner/De' Selo eta Slgnahn'e of rupet•iy 1 Utvner/De 'elo Ter I)tlte RevReU fOlIB/18$0 Exhibit 3 Project Description Full interior and exterior remodel. Interior: -Demo the interior including removing existing plumbing and electrical. -Divide building into 5 individual lease spaces each with a restroom and storage closet. -Install new plumbing, HVAC and electrical for entire building. Exterior: -Repair exterior damage and remove garage style doors and boarding. -Install exterior glass doors and windows for each space. -Replace exterior with stone and brick and paint exterior. City of Fort Worth, Texas Mayor and council Communication DATE: 01/11/22 M&C FILE NUMBER: M&C 22-0011 LOG NAME: 19NEZ4809MILLERAVE SUBJECT (CD 5)Authorize Execution of a Five-Year Tax Abatement Agreement with WAFA Business,LLC-Miller Ave for the Rehabilitation of a Car Wash for Use as a Shopping Center with Office,Retail and Restaurant Space,with a Total of Approximately 4,300 Square Feet, Having a Cost of at Least$457,000.00 on Property Located at 4809 Miller Avenue in Neighborhood Empowerment Zone and Reinvestment Zone Area Six RECOMMENDATION: It is recommended that the City Council: 1. Authorize the execution of a Five-Year Tax Abatement Agreement with WAFA Business, LLC-Miller Ave for the rehabilitation of a car wash for use as a shopping center with office,retail and restaurant space,with a total of approximately 4,300 square feet,having a cost of at least$457,000.00 on property located at 4809 Miller Avenue in Neighborhood Empowerment Zone and Reinvestment Zone Area Six;and 2. Find that the terms of,and the property subject to,the Tax Abatement Agreement meet the criteria and guidelines set forth in Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: WAFA Business, LLC-Miller Ave(Property Owner)is the owner of the property described as Block 7, Lots 2 and 3,J.T.Couch Addition,an addition to the City of Fort Worth,Tarrant County,Texas according to the plat recorded in Volume 388-G,Page 3, Plat Records,Tarrant County, Texas at 4809 Miller Avenue,Fort Worth,Texas.The property is located within the Echo Heights neighborhood and Neighborhood Empowerment Zone Area Six(NEZ). The Property Owner plans to invest an estimated amount of$457,000.00 for the rehabilitation of a car wash into an approximately 4,300 square foot shopping center with office,retail and restaurant space(Project).The Neighborhood Services 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 include 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 2022 at the estimated pre-improvement value,as defined by the Tarrant Appraisal District(TAD)in 2021,as follows: Pre-Improvement TAD Value of Improvements $155,407.00 Pre-Improvement Estimated Value of Land $21,545.00 Total Pre-Improvement Estimated Value L$176,952.00 The municipal property tax on the improved value of the Project after completion is estimated to be$3,347.53 per year for a total amount of $16,737.65 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. The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the consent of the City Council.If the property is sold to a new owner,other than an affiliate,the Agreement may be assigned only with City Council approval and provided that 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 5. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the Tax Abatement Agreement,a loss of an estimated$16,737.65 in property tax revenue may occur over the five-year period.This reduction in revenue will be incorporated into the long term financial forecast upon the Tax Abatement being officially granted. Submitted for City Manager's Office bv: Fernando Costa 6122 Originating Business unit Head• Victor Turner 8187 Additional Information Contact: Sarah Odle 7316 •• g — lot � o two ow m % �g w �a z�A � �B m i ai i w � I a i a r a' o a — a � p� N O Im