HomeMy WebLinkAboutContract 30080 ITY, SECRE TIARY-,
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STATE OF TEXAS §
COUNTY OF TARRANT §
TAX ABATETNIENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
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 Reid Rector,
its duly authorized Assistant City Manager, and RIVER VIEW AT RIDGLEA L.P., a New York
limited partnership ("Owner"), acting by and through NAP RIDGLEA, LP, a Texas limited
partnership, Owner's general partner.
The City Council of the City of Fort Worth ("City Council") hereby finds, and the City
and Owner hereby agree, that the following statements are true and correct and constitute the basis
upon which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) if the municipality determines that the
creation of the zone would promote:
a. The creation of affordable housing, including manufactured housing in the
zone;
b. An increase in economic development in the zone;
c. An increase in the quality of social services, education, or public safety
provided to residents of the zone; or
d. The rehabilitation of affordable housing in the zone
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a i NEZ, may enter into agreements abating municipal property taxes on
property in the zone,
C. On July 31, 2001, the City adopted basic incentives for property owners who own
property located in a NEZ, stating that the City elects to be eligible to participate in
tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled ".NEZ
Basic Incentives" ("NEZ Incentives"), these are readopted on April 22, 2003 and
May 27, 2003, April 6, 2004 (G-14327) The May 27, 2003 NEZ Incentives are
attached hereto as Exhibit "A" and hereby made a part of this Agreement for all
purposes.
D. On April 22, 2003, the City Council adopted Resolution No. 2823, stating that the
City elects to be eligible to participate in tax abatement and in
and criteria governing tax abatement agreements entered into
Page I of 22
Draft 6.3.04
various third parties, entitled "Neighborhood Empowerment Zone Tax Abatement
Police and Basic Incentives" (the "Policy Statement"), which is attached hereto as
Exhibit"A" and hereby made a part of this Agreement for all purposes.
E. On April 6, 2004, the City Council adopted amendments to the NEZ Tax
Abatement Policy and Basic Incentives M&C G-14327
F. The NEZ Incentives contain appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter
312 of the Texas Tax Code, as amended (the "Code").
G. On April 2, 2002, the Fort Worth City Council adopted Resolution No.G-13580(the
"Resolution") and Ordinance 15061 establishing Ridglea/Como Area
"Neighborhood Empowerment Zone No. 2," City of Fort Worth, Texas (the
"Zone").
H. On June 8, 2004, the Fort Worth City Council adopted Ordinance
establishing "Neighborhood Empowerment Zone No. 18," City of Fort Worth,
Texas (the "Zone").
I. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "B", attached hereto and hereby made a part of this
Agreement for all purposes (the "Premises").
Owner or its assigns plans to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used as an apartment complex
(the "Project").
K. On January 9, 2004, Owner submitted an application for NEZ incentives and tax
abatement to the City concerning the contemplated use of the Premises (the
"Application"), attached hereto as Exhibit "C" and hereby made a part of this
Agreement for all purposes.
L. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging
development of the Zone in accordance with the purposes for its creation and are in
compliance with the Policy Statement, the Resolution and other applicable laws,
ordinances, rules and regulations.
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M. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
N. 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 are located.
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Draft 6.3.04
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 a multi-family apartment complex
and certain other improvements to the Premises on and within the Premises certain
improvements to the Premises that are described in Exhibit "D" and "E" (the "Required
Improvements") (i) at least 200,000 square feet in size; (ii) having an appraised value of at
least $11,000,000.00 as determined by an independent appraiser; and (iii)being
substantially completed by March 31, 2005, unless delayed because of Force Majeure (as
defined in Paragraph 1.2), in which case this deadline shall be extended by the number of
days comprising the specific Force Majeure; and constructed in compliance with the
architectural drawing attached as Exhibit"E".
Owner shall provide a copy of the final site plan to City once it is approved by the
Department of Development and the parties agree that such final site plan shall be a part of
this Agreement and shall be labeled Exhibit "H". The final site plan shall be in
substantially the same form as the preliminary site plan.
Owner has provided an architectural drawing of the faqade of the Required Improvements
to City. These are attached as Exhibit "E". Owner shall provide a copy of the final
architectural plans of the Required Improvements that shall be in conformance with the
drawing that has been provided to City. Once the plans are available, the plans shall be
attached as Exhibit "F"
Minor variations 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 (i) the conditions in the first sentence of this Section 1.1 are met,
(ii) the architectural plans that are provided to the city are in compliance with Exhibit "E";
(iii) the Required Improvements are constructed in compliance with exhibit "E" and (iv)
the Required Improvements are used for the purposes and in the constructed in the manner
described in Exhibit "D" and in a manner that is consistent with the general purposes of
encouraging development or redevelopment of the Zone. The failure to build the Required
Improvements in conformance with Exhibit "E" shall be an Event of Default as provided in
Section 4.
1.2. Completion Date of Required Improvements.
Owner covenants to substantially complete construction of all of the Required
Improvements on or before two years after the issuance of a building permit (the
"Completion Date"), unless delayed because of Force Majeure, in which case the 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
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Draft 6.3 04
including, without limitation, 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 in accordance with the description of the Project set
forth in the Exhibit "D". 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. ABATENTIENT AMOUNTS,TERMS AND CONDITIONS.
The City will grant to Owner annual property tax abatements on the Premises and
Required Improvements for a period of five (5) years, specifically provided in this Section
2 and subject to and in accordance with this Agreement (collectively, the "Abatement").
The actual amount of the Abatement granted under this Agreement shall be based upon the
increase in value of the Premises and Required Improvements over their respective values
for the 2004 tax year, which is the year in which this Agreement was entered into, and upon
attainment by Owner of certain benchmarks set forth in this Section 2 . 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.
Subject to the terms of this Agreement, during each year of the Term, the
Abatement granted hereunder may range up to a maximum of one hundred percent (100%)
of the increased value of the Premises and Required Improvements and shall be calculated
as stated in this Section. The actual amount of the Abatement granted under this
Agreement shall be based upon the increase in value of the Premises and Required
Improvements excluding inventory and supplies, over their values on January 1, 2004,
which Tarrant Appraisal District has determined to be $1,511,576.
The maximum percentage of Abatement available to Owner is as stated below.
Owner shall be eligible for all Abatement under this Section 2.1 if Owner meets all the
requirements set forth in Section 2.2. In addition, Owner may not offset a deficiency in
one subsection by exceeding its commitment in another subsection.
2.1.1. Abatement Based on Affordable Housing Units in the Zone for
the first five years of the Abatement Term.
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Draft 6.3.04
Owner shall receive 100 percent (100%) Abatement of the increase in
value of the Premises and Required Improvements over its value on January 1,
2004, for the first five years of the abatement term so long as Owner is in
compliance with Section 2.2.1.
2.2 COMPLIANCE DETERTAMNATION
2.2.1 Abatement Based on Affordable Housing Units for years One
through Five of the Abatement Term
For years one through five of the Abatement Tenn, Owner shall
receive one hundred percent (100%) of the amount of the Abatement
specified in Section 2.1.I if Owner sets aside twenty percent (20%) of total
units or forty-nine (49) units for families with incomes at or below 80% of
Area Family Median Income (AMFI) adjusted annually by the Housing and
Urban Development Department (HUD) and the rent for the forty-nine (49)
units does not exceed thirty percent (30%) of the families' total monthly
income. Such 49 units shall consist of the following categories: thirty-one
(31) one bedroom units, sixteen (16) two bedroom units and two (2) three
bed room units. In no event shall Owner unreasonably deny an 80% of
AMFI tenant's application. In the event that the set aside units fall below
the 20% set aside, Owner shall make its best effort to bring the 20% set
aside back into compliance within the time specified in Section 4 or it shall
be in default.
Determination of Compliance with the forty-nine (49) unit set aside
for families with incomes at or below 80% of median income requirements
shall be based on Owner's occupancy data on August I for year one through
five during the Compliance Auditing Term, as defined in Section 2.6. The
maximum percentage of abatement available to Owner under this Section
2.2.1 is one hundred percent(100%). Owner shall not be eligible for any of
the one hundred percent (100%) Abatement under this Section 2.2.1 unless
Owner meets the minimum requirements set for in the paragraph above.
2.3 Effect of Failure to Meet Section 2.2 Commitments.
For years one through five of the Tax Abatement Term, except where
specifically identified as an Event of Default, the failure to meet any or all of the
operational commitments on the Premises and set forth in Section 2.2.1 shall result
only in the cancellation of the 100% Abatement available to Owner for the year not
in compliance and shall not constitute an Event of Default as defined in Section 4.1
of this agreement or trigger the cure periods and remedies set forth in that Section 4.
Page 5 of 22
Draft 6.3 04
2.4. 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 on January 1, 2004, including the Required
Improvements, up to a maximum of $16,500,600. In other words, by way of
example only, if the increase in value of the Premises, including" the Required
Improvements, in a given year is $30,000,000, Owner's Abatement for that tax year
shall be capped and calculated as if the increase in value of the Premises for that
year had only been $16,500,000,
2.5. 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.
2.6. Compliance AuditinLy Term.
January I of the year following the year in which a final certificate of
occupancy is issued for the Required Improvements will constitute the start of
auditing for compliance of this Agreement ("Compliance Auditing Term").
Taxes will not be abated during the first year of the Compliance Auditing Term.
The term of the Abatement benefit (the "Term") shall begin on January I of the
year following the year that the Compliance Auditing Term begins (the
"Abatement Beginning Date"). Unless sooner terminated as herein provided, the
Term and the Compliance Auditing Term shall end on the December 31st
immediately preceding their respective fifth (5th) anniversaries. Information for the
last Compliance Auditing Term shall be submitted as indicated in Section 3.3.
2.7. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement
application fee of one-half of one percent (.510) of Project's estimated cost, not to
exceed $1,000. If Owner diligently begins or causes to begin construction of the
Required Improvements on the Premises within one (1) year from the date of the
Application, this application fee shall be credited or refunded In full to Owner.
Otherwise, the application fee shall not be credited or refunded to any party for any
reason,
3. RECORDS, AUDITS AND EVALUATION OF PROTECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term,
I
at any time during normal office hours throughout the Term and.hear
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the Term and following reasonable notice to Owner, the City shall havb WIICT
Page 6 of 22
Draft 6.3.04
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. Notwithstanding the foregoing, any
representative of City must be escorted by Owner's personnel and no such
inspection/evaluation shall unreasonably interfere with Owner's operations.
3.2. Audits.
The City shall have the fight to audit 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 Tenn in order to
determine compliance with this Agreement and to calculate the correct percentage
of Abatement,available to Owner. The City shall provide Owner notice of any such
audit at least forty-eight hours in advance of the audit. Owner shall make all
Records available to the City on the Premises or at another location in the City
following reasonable advance notice to the City and shall otherwise cooperate fully
with the City during any audit.
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3.3. Provision of Information.
On or before February 1 following the end every year during the
Compliance Auditing Tenn, 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 following:
3.3.1. The number and dollar amounts of all construction contracts and
subcontracts awarded on the Project, specifying the number and dollar
amounts spent with contractors that are MfWBE certified Lake Como
contractors; and
3.3.2. The total number of employees holding Full-time Jobs and who worked on
the Premises; the number of such employees who resided within the
corporate limits of the City and the number of such employees who resided
in Lake Como areas, all as of August I of the preceding calendar year,
together with reasonable documentation regarding the residency of such
employees;
3.3.3. The total number of employees holding Full-time Jobs during construction
of the Required Improvements who resided in Lake Como areas, all as of
August I of the preceding calendar year, together with reasonable
documentation regarding the residency of such employees;
3.3.4. The number of units occupied by families with income at or below 80% of
(AWI) and the rents for those units; and
Draft 6.3 04 Page 7 of 22
3.3.5.
Owner shall supply any additional information requested by the City in its
evaluation of Owner's compliance with each of the terms and conditions of this
Agreement. Failure to provide all information 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 I of each year during the Compliance Auditing Tenn,
the City shall make a decision and rule on the actual annual percentage of
Abatement available to Owner for the following year of the Tenn based on reports
filed by Owner pursuant to Section 3.3 hereof and/or the City's audit of the Records
and any inspections of the Premises and/or the Required Improvements and shall
notify Owner in writing of such decision and ruling. If Owner reasonably disagrees
with the City's decision and ruling, Owner shall notify the City in writing within
fourteen (14) calendar days of receipt. In this event, Owner, at Owner's sole cost
and expense, may request an independent third party who is reasonably acceptable
to the City to verify the findings of the City within not more than thirty (30)
calendar days following receipt of Owner's notice to the City, and if any
discrepancies are found, the City, Owner and the independent third party shall
cooperate with one another to resolve the discrepancy. If resolution cannot be
achieved, the matter may be taken to the City Council for consideration in an open
public meeting at which both City staff and Owner's representatives will be given
an opportunity to comment. The ruling and determination by the City Council shall
be final. The actual percentage of the Abatement granted for a given year of the
Tenn is therefore based upon Owner's compliance with the terms and conditions of
this Agreement during the previous year of the Compliance Auditing Tenn.
4. EVENTS OF DEFAULT.
4.1. Defined.
Owner shall be in default of this Agreement if (i) any of the covenants set forth in
any portion of this Agreement are not met; or (ii) Owner fails to build the Required
Improvements in conformance with Exhibit "E"; or (iii) 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) subject to Section 2.2 of
this Agreement, owner breaches any of the other terms or conditions of this Agreement
(collectively, each an "Event of Default").
4.2. -Notice to Cure.
Draft 6.3.04 Page 8 of 22
Subject to Section 6. 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 ninety (90) 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 eighty (180)
calendar days from the original date of receipt of the written notice, or 00 if'Owner
reasonably believes that Owner will require more than one hundred eighty (180) 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 has not been cured within the time frame specifically allowed
under Section 4.2, the City shall have the right to terminate this Agreement immediately.
Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's
economic development and redevelopment efforts on the Premises and in the vicinity of the
Premises; (ii) require unplanned and expensive additional administrative oversight and
involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the
amounts of actual damages there from are speculative in nature and will be difficult or
impossible to ascertain. Therefore, upon termination of this Agreement for any Event of
Default, Owner shall pay the City, as liquidated damages, all taxes that were abated in
accordance with this Agreement for each year when an Event of Default existed and which
otherwise would have been paid to the City in the absence of this Agreement. The City and
Owner agree that this amount is a reasonable approximation of actual damages that the City
will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to
provide the City with compensation for actual damages and is not a penalty. This amount
may be recovered by the City through adjustments made to Owner's ad valorem property
tax appraisal by the appraisal district that has jurisdiction over the Premises and over any
taxable tangible personal property located thereon. 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 Code at the time of
the payment of such penalties and interest (currently, Section 33.01' of the Code),
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the
Premises or construction of the 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. Irt,-this—eyg�nj,-(i) i f the Term
has commenced, the Term shall expire as of the effective dat e of the,tcrtanation of this
Draft 6.3 04 Page 9 of 22
Agreement; (ii) there shall be no recapture of any taxes previously abated; and (iii) neither
party shall have any further rights or obligations hereunder.
5. INDEMNIFICATION.
Owner understands and agrees that the City is not sponsoring the Project or creating any
kind of partnership or joint venture with Owner with regard to the Project, including, but not
limited to, the construction of the Required Improvements. It is expressly understood and agreed
that Owner shall operate as an independent contractor as to all aspects of the Project, and not as
an agent or representative the City. OWNER, AT OWNER'S OWN EXPENSE, SHALL
INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO THE
INDEMNIFIED PARTIES HEREIN) AND HOLD HARMLESS THE CITY, ITS
OFFICERS, AGENTS, SERVANTS, EMPLOYEES AND CONTRACTORS, FROM AND
AGAINST ANY CLAIM, LAWSUIT OR OTHER ACTION FOR DAMAGES OF ANY KIND,
INCLUDING, BUT NOT LIMITED To, PROPERTY LOSS, PROPERTY DAMAGE
ANDIOR PERSONAL INJURY OF ANY KIND, INCLUDING DEATH, TO ANY AND ALL
PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, To THE
EXTENT(i) CAUSED BY THE NEGLIGENT OR WILLFUL A CT(S) OR OMISSION(S) OF
OWNER, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS
ANDIOR SUBCONTRACTORS, AND (ii) ARISING OUT OF, OCCASIONED BY OR
RELATED TO THE PROJECT OR THE CONSTRUCTION OF THE REQUIRED
IMPROVEMENTS OR ANY OTHER PERFORMANCE OF THIS AGREEMENT.
6. EFFECT OF SALE OF PREMISES AND/OR REQUIRED IMPROVEMENTS.
The Abatement granted hereunder shall vest only in Owner and cannot be assigned to a
new owner of all or any portion of the Premises and/or Required Improvements and/or tangible
personal property on the Premises without the prior consent of the City Council, which consent
shall not be unreasonably withheld provided that (i) the City Council finds that the proposed
assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the
proposed assignee agrees in writing to assume all terms and conditions of Owner under this
Agreement. Owner may not otherwise assign, lease or convey any of its rights under this
Agreement. Any attempted assignment without the City Council's prior consent shall constitute
grounds for termination of this Agreement and the Abatement granted hereunder following ten (10)
calendar days of receipt of written notice from the City to Owner.
7. 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 River View at Ridglea, L.P.
Attn: City Manager c/o North America Partners Devell)
p
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Draft 6.3.04
1000 Throckmorton Partners, Ltd.
Fort Worth,TX 76102 1985 Forest Lane
Garland, TX 75042
with copies to:
the City Attorney and Owens, Clary& Aiken, L.L.P.
Economic/Community Development
1 700 N. Pearl Street, Suite 1600
Director at the same address Dallas, Texas 75201
Attn: Leon G. Scroggins, H, Esq.
Robert L. Owens, Esq.
8. MISCELLANEOUS.
8.1. 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.
8.2. 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 Plan or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
8.3. 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 "C", the body
of this Agreement shall control.
8.4. 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.
8.5. Owner Standing.
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Draft 6.3.04
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,
91 1 1
resolutions or City Council actions authorizing this Agreement, and Owner shall be entitled
to intervene in any such litigation.
8.6. 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.
8.7. Recordation.
Owner shall cause a certified copy of this Agreement in recordable form to be
recorded in the Deed Records of Tarrant County, Texas and shall be responsible for all
costs of such recordation.
8.8. 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.
8.9. 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.
8.10. 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.
8.11. Amendment.
This Agreement may be amended only by the written agreement of the City and
Owner.
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Draft 6.3.04
8.12. Additional Goals
8.12.1 Owner agrees to attempt to meet the following jobs creation goals:
z:1 Z:� Z:7
1. Owner agrees to attempt to award construction contracts to Lake
Como NMBE contractors totaling $477,000 during the construction
of the Required Improvements; and 1
2. Owner agrees to attempt to provide 10 construction jobs to Lake Como
Residents during the construction of the Required Improvements as
recruited through a neighborhood based job fair; and
3. Owner agrees to attempt to provide two of the six permanent jobs
created to Lake Como Residents.
8.12.2. Owner agrees to work with a support committee consisting of
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representatives of Lake Como, Historic Camp Bowie and the City of Fort
Worth to achieve the goals listed in 8.12.1.
8.12.3 So long as Owner meets the conditions in Section 2, the abatement granted
under this agreement shall not be affected by Owner's failure to meet the
goals listed in 8.12.1.
8.12.4 For the purposes of this agreement, the "Lake Como Area" is defined as
that area designated by Council Resolution 2823 as the Ridglea/Como
Neighborhood Empowerment Zone, except the area west of Bryant Irvin
Road.
IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed
as of the later date below:
[SIGNATURES FOLLOW ON NEXT PAGE]
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Draft 6.3.04
EXECUTED this
Worth,Texas. _ day of JAgA f 2004, by the City of Fort
EXECUTED this --LO day of 2004, by River View at
Ridglea, L.P.
CITY OF FORT WORTH:
1-A
Reid Rector '
Assistant City Manager
ATTEST:
A
By: -
City Secretary
APPROVED TO FORM AND LEGALITY:
By:.
Cynthia arcia
Assistant City Attorney
M & C:-
Page 14 of 22
Draft 6.3.04
OWNER:
RIVER VIEW AT RIDGLEA, L.P.,
a New York limited partnership
By: NAP Ridglea, LP,
a Texas limited partnership,
its General Partner
By: NAP Ridglea GP,LLC,
a Texas limited liability company,
its General Partner
By: f
M-anager
Page 15 of 22
Draft 6.3.04
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Reid Rector,
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 /011 day of
, 2004.
ROSELLA BARNES
NOTARy PU13LIC
Notary Public in and for stet e of Texas
omrmExp.03-311-2005
the State of Texas
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
Manager of NAP Ridglea GP, LLC, a Texas limited liability company, General Partner of NAP
Ridglea, LP, a Texas limited partnership, General Partner of River View at Ridglea, L.P., a New
York limited partnership, 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 River View at Rid-lea.
LP.
GI UNDER MY HAND AND SEAL OF OFFICE this day
of 2004.
r'T
-a-7121
Notary Public in and for
ary Public
the State of Texas
EX
OF T AS
105
Exhibit A: NEZ Incentives
Exhibit B: Legal description of real property
Exhibit C: Application for NEZ Incentives and tax abatement
Exhibit D: Project description including kind, number and location of the proposed
improvements.
Exhibit E: Architectural Drawing
Exhibit E: Architectural Plans
,. ..,,....S' a
Exhibit A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
1. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) when a "...municipality determines that the creation
of the zone would promote:
(1) the creation of affordable housing, including manufactured housing, in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
11. DEFINITIONS
"Abatement" means the full or partial exemption from City of Fort Worth ad valorem taxes on
eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in
appraised value (as reflected on the certified tax roll of the appropriate county appraisal district)
resulting from improvements ments begun after the execution of the tax abatement agreement.
Eligible properties must be located in the NEZ.
"Base Value" is the value of the property, excluding land, as determined by the Tarrant County
Appraisal District, during the year rehabilitation occurs.
"Building Standards Commission" is the commission created under Sec, 7-77, Article IV,
Minimum Building Standards Code of the Fort Worth City Code.
"Capital Investment" includes only real property improvements such as new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment
does NOT include land acquisition costs and/or any existing improvements, or personal property
(such as machinery, equipment, and/or supplies and inventory),
Adopted April 6, 2004 1
"City of Fort Worth Tax Abatement Policy Statement"means the policy adopted by City Council
on February 29, 2000.
"CommerciallIndustrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project"is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of
Fort Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to real property. Eligible
Rehabilitation does NOT include personal property (such as furniture, appliances, equipment,
and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
"Minimum Building Standards Code" is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)"and 'Women Business Enterprise (WBE)"is a minority or
woman owned business that has received certification as either a certified MBE or certified
WBE by either the North Texas Regional Certification Agency (NTRCA) or the Texas
Department of Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the
total gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets
the requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning
Ordinance.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate multi-family residential living units on property that is (or meets the requirements to
be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning Ordinance.
"Project" means a "Residential Project", "CommerciallIndustrial Development
Project,","C"'ornmunity Facility Development Project", 'Mixed-Use Development Project" or a
"Multi-family Development Projects"
"Reinvestment Zone" is an area designated as such by the City of Fort Worth in accordance
with the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas
Tax Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone
Act, codified in Chapter.2303 of the Texas Government Code,
Adopted April 6, 2004 2 ------
Ill. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5
YEARS
1. For residential property purchased before NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is owner-occupied and the primary residence of the homeowner prior to
the final NEZ designation. Homeowner shall provide proof of ownership by a
warranty deed, affidavit of heirship, or a probated will, and shall show proof of
primary residence by homestead exemption; and
b. Property is rehabilitated after NEZ designation and City Council approval of the
tax abatement.
c. Homeowner must perform Eligible Rehabilitation on the property after NEZ
designation equal to or in excess of 30% of the Base Value of the property; and
d. Property is not in a tax-delinquent status when the abatement application is
submitted.
2. For residential property purchased after NEZ designation, a homeowner shall be
eligible to apply for a tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement;
b. Property is owner-occupied and is the primary residence of the homeowner.
Homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property. The seller or
owner shall provide the City information to support rehabilitation costs;
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
e. Property is in conformance with the City of Fort Worth Zoning Ordinance.
3. For investor owned single family property, an investor shall be eligible to apply for a
tax abatement by meeting the following:
a. Property is constructed or rehabilitated after NEZ designation and City Council
approval of the tax abatement:
b. For rehabilitated property, Eligible Rehabilitation costs on the property shall be
equal to or in excess of 30% of the Base Value of the property;
c. Property is not in a tax-delinquent status when the abatement application is
submitted; and
d. Property is in conformance with the City of Fort Worth Zoning Ordinance.
B. MULTI-FAMILY,DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 9years.
If an s !;cant a lies for a tax abatement a reement with a til'.1.11 NiVi
less,. this section shall anal .
Adopted April 6, 2004
Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement upon completion, a newly
constructed or rehabilitated multi-family development project in a NEZ must satisfy
the following:
At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
(a) For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of$200,000; or
(b) For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of$200,000.
2 1%-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply.
Abatements for multi-family development projects for up to 10 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years I through 5 of the Tax Abatement Agreement
Multi-family projects shall be eligible for 100% abatement of City ad valorem taxes
for years one through five of the Tax Abatement Agreement upon the satisfaction of
the following:
At least twenty percent (20%) of the total units constructed or rehabilitated shafl
be affordable 'as defined by the U. S. Department of r,Housing and Urban
Development) r
ent) to persons with incomes at or below eighty pcenf.'_(8-G11/G-T-'5f` area
median income based on family size and such units all, be, set ,aside for
Adopted Apnil 6, 2004 4
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
a. For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of$200,000; or
b. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of$200,000.
Years 6 through 10 of the Tax Abatement Agreement
Multi-family projects shall be eligible for a 1%-100% abatement of City ad valorem
taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following:
a. At least twenty percent (20%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development) to persons with incomes at or below eighty percent (80%) of area
median income based on family size and such units shall be set aside for
persons at or below 80% of the median income as defined by the U.S.
Department of Housing and Urban Development. City Council may waive or
reduce the 20% affordability requirement on a case-by-case basis; and
1. For a multi-family development project constructed after NEZ designation, the
project must provide at least five (5) residential living units OR have a
minimum Capital Investment of$200,000; or
2. For a rehabilitation project, the property must be rehabilitated after NEZ
designation. Eligible Rehabilitation costs on the property shall be at least
30% of the Base Value of the property. Such Eligible Rehabilitation costs
must come from the rehabilitation of at least five (5) residential living units or
a minimum Capital Investment of$200,000.
b. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1. utilization of Fort Worth companies for an agreed upon percentage of the total
costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for an
agreed upon percentage of the total costs for construction contracts,
3, property inspection,
4, commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
6. landscaping;
7, tenant selection plans-, and
& management plans.
Ca COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
Adopted April 6, 2004 5
1 100% Abatement of City Ad Valorem taxes for 5 years
If an applicant applies for a tax abatement agreement with a term of five years or
less, this section shall apply.
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may
apply with the Housing Department for such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, a newly constructed or
rehabilitated commercial/industrial and community facilities development project in a
NEZ must satisfy the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000, whichever is greater.
2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall apply,
Abatements, agreements for a Commercial, Industrial and Community Facilities
Development projects for up to 10 years are subject to City Council approval. The
applicant may apply with the Economic and Community Development Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
Years 1 through 5 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 100% abatement of City ad valorem taxes for the first five years of the
Tax Abatement Agreement upon the satisfaction of the following,
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital Investment of
$75,000; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation, Eligible
Rehabilitation costs on the property shall be at least 30% of the Base Value of
the property, or $75,000, whichever is greater.
Adopted April 6, 2004 6
Years 6 through 10 of the Tax Abatement Agreement
Commercial, Industrial and Community Facilities Development projects shall be
eligible for 1%-100% abatement of City ad valorem taxes for years six through ten of
the Tax Abatement Agreement upon the satisfaction of the following:
a. A commercial, industrial or a community facilities development project
constructed after NEZ designation must have a minimum Capital
Investment of $75,000 and must meet the requirements of subsection (c)
below ; or
b. For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the
Base Value of the property, or $75,000, whichever is greater and meet
the requirements of subsection (c) below,
c. Any other terms as City Council of the City of Fort Worth deems
appropriate, including, but not limited to:
1. . utilization of Fort Worth companies for an agreed upon percentage of
the total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises
for an agreed upon percentage of the total costs for construction
contracts;
3. commit to hire an agreed upon percentage of Fort Worth residents;
4. commit to hire an agreed upon percentage of Central City residents;
and
5. landscaping.
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 Vears
If an applicant applies for a tax abatement agreement with a term of five Vears or
less, this section shall apply.
Abatements for Mixed-Use Development Projects for up to 5 years are subject to
City Council approval. The applicant may apply with the Housing Department for
such abatement.
The applicant must apply for the tax abatement and be approved by City Council
before construction or rehabilitation is started.
In order to be eligible for a property tax abatement, upon completion, a newly
constructed or rehabilitated mixed-use development project In a NEZ must satisfy the
following'.
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project,
and
(1) A mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of$200,000; or
Adopted April 6, 2004 7
(2) For a rehabilitation project, it must be rehabilitated after NEZ designation.
Eligible Rehabilitation costs on the property shall be at least 30% of the Base
Value of the property, or $200,000, whichever is greater.
2. 1%-100% Abatement of City Ad Valorem taxes up to 10 years
If an applicant applies for a tax abatement agreement with a term of more than five
years, this section shall appIV.
Abatements agreements for a Mixed Use Development projects for up to 10 years
are subject to City Council approval. The applicant may apply with the Housing
Department for such abatement.
The applicant must apply for the tax abatement before construction or rehabilitation
is started and the application for the tax abatement must be approved by City
Council.
Years 1 through 5 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 100% abatement of City ad
valorem taxes for the first five years of the Tax Abatement Agreement upon the
satisfaction of the following:
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
and
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation, Eligible Rehabilitation costs on the
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater.
Years 6 through 10 of the Tax Abatement Agreement
Mixed Use Development projects shall be eligible for 1-100% abatement of City ad
valorem taxes for years six through ten of the Tax Abatement Agreement upon the
satisfaction of the following-.
a. Residential uses in the project constitute 20 percent or more of the total Gross
Floor Area of the project; and
b. Office, eating and entertainment, and/or retail sales and service uses in the
project constitute 10 percent or more of the total Gross Floor Area of the project;
c. A new mixed-use development project constructed after NEZ designation must
have a minimum Capital Investment of $200,000; or for a rehabilitation project, it
must be rehabilitated after NEZ designation, Eligible Rehabilitation costs on the
Adopted April 6, 2004 8
property shall be at least 30% of the Base Value of the property, or $200,000,
whichever is greater-, and
d. Any other terms as City Council of the City of Fort Worth deems appropriate,
including, but not limited to:
1, utilization of Fort Worth companies for an agreed upon percentage of the
total costs for construction contracts;
2. utilization of certified minority and women owned business enterprises for
an agreed upon percentage of the total costs for construction contracts;
3. property inspection;
4. commit to hire an agreed upon percentage of Fort Worth residents
5. commit to hire an agreed upon percentage of Central City residents
& landscaping;
7. tenant selection plans; and
8. management plans.
E. ABATEMENT GUIDELINES
1. If a NEZ is located in a Tax Increment Financing District, City Council will determine
on a case-by-case basis if the tax abatement incentives in Section III will be offered
to eligible Projects. Eligible Projects must meet all eligibility requirements specified
in Section 111.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a tax abatement under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth
3. In order to be eligible to apply for a tax abatement, the property owner/developer
must:
a. Not be delinquent in paying property taxes for any property owned by the
owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
1. the Project meets',N'EZ tax abatement criteria; and
2. the applicant is not responsible for the tax delinquency for the Property; and
3. the applicant enters into an agreement to pay off the taxes under the guidelines
permitted under state law; and
4, the tax abatement shall provide that the agreement shall take -effect after the
delinquent taxes are paid in fall
b. Not have any City of Fort Worth liens filed against any property owned by the
applicant property owner/developer. "Liens" include, but are not limited to, weed
liens, demolition liens, board-up/open structure liens and paving liens.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for tax abatements.
5. Once a NEZ property owner of a residential property (including mules
NEZ satisfies the criteria set forth in Sections IIIA E.1. and E. . and i e -f,
s or,,'ap
Adopted April 6, 2004 9
abatement, a property owner may enter into a tax abatement agreement with the City
of Fort Worth. The tax abatement agreement shall automatically terminate if the
property subject to the tax abatement agreement is in violation of the City of Fort
Worth's Minimum Building Standards Code and the owner is convicted of such
violation.
6. A tax abatement granted under the criteria set forth in Section 111. can only be
granted once for a property in a NEZ for a maximum term of as specified in the
agreement. If a property on which tax is being abated is sold, the City will assign the
tax abatement agreement for the remaining term once the new owner submits an
application.
7. A property owner/developer of a multifamily development, commercial, industrial,
community facilities and mixed-use development project in the NEZ who desires a
tax abatement under Sections III.B, C or D must:
a. Satisfy the criteria set forth in Sections 111.13, C or D, as applicable, and Sections
III.E.1 E.2; and E3. and
b. File an application with the Housing Department, as applicable; and
c. The property owner must enter into a tax abatement agreement with the City of
Fort Worth. In addition to the other terms of agreement, the tax abatement
agreement shall provide that the agreement shall automatically terminate if the
owner receives one conviction of a violation of the City of Fort Worth's Minimum
Building Standards Code regarding the property subject to the abatement
agreement during the term of the tax abatement agreement; and
d. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term.
8. If the terms of the tax abatement agreement are not met, the City Council has the
right to cancel or amend the abatement agreement. In the event of cancellation, the
recapture of abated taxes shall be limited to the year(s) in which the default occurred
or continued.
9. The terms of the agreement shall include the City of Fort Worth's right to: (1) review
and verify the applicant's financial statements in each year during the life of the
agreement prior to granting a tax abatement in any given year, (2) conduct an on site
inspection of the project in each year during the life of the abatement to verify
compliance with the terms of the tax abatement agreement, (3) terminate the
agreement if the Project contains or will contain a sexually oriented business (4
terminate the agreement, as determined in City's sole discretion, if the Project
contains or will contain a liquor store or package store,
10. Upon completion of construction of the facilities, the City shall no less than annually
evaluate each project receiving abatement to insure compliance with the terms of the
agreement. Any incidents of non-compliance will be reported to the City Council,
On or before February 1st of every year during the life of the agreement, any
individual or entity receiving a tax abatement from the City of Fort Worth shall
provide information and documentation which details the property owner's
compliance with the terms of the respective agreement and shall certify that the
Adopted April 6, 2994 10
owner is in compliance with each applicable term of the agreement. Failure to report
this information and to provide the required certification by the above deadline shall
result in cancellation of agreement and any taxes abated in the prior year being due
and payable,
11. If a property in the NEZ on which tax is being abated is sold, the new owner may
enter into a tax abatement agreement on the property for the remaining term. Any
sale, assignment or lease of the property which is not permitted in the tax abatement
agreement results in cancellation of the agreement and recapture of any taxes
abated after the date on which an unspecified assignment occurred.
F. APPLICATION FEE
1. The application fee for residential tax abatements governed under Section III.A is
$25.
2. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D., is one-
half of one percent (0.5%) of the proposed Project's Capital Investment, not to
exceed $1,000. The application fee will be refunded upon issuance of certificate of
final occupancy and once the property owner enters into a tax abatement agreement
with the City. Otherwise, the Application Fee shall not be credited or refunded to any
party for any reason.
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth,
1 Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers.
4. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer,
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
c, must not have any City liens filed against any property owned by the applicant
property owner developer, including but not 'limited to, weed liens, demolition
liens, board-up/open structure liens and paving liens; and
Adopted April 6, 2004 11
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to be
approval of any aspect of the Project. Before construction, the applicant must
ensure that the project is located in the correct zoning district.
B. DEVELOPMENT FEES
Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed by the City of Fort Worth for Projects in the NEZ
are waived for new construction projects or rehabilitation projects that expend at least
30% of the Base Value of the property on Eligible Rehabilitation costs:
1. All building permit related fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee
Other development related fees not specified above will be considered for approval by
City Council on a case-by-case basis.
C. IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter, then City Council approval is
required. Applicant may request the additional amount of impact fee waiver
through the Housing Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
Adopted April 6, 2004 12
1. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to apply for a fee
waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for release of city liens under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth.
1 Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
4. In order for a property owner/developer to be eligible to apply for a release of city
liens contained in Section V.B., C., D., and E. for a Project, the property
owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
b. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5) years;
c. must not have any City of Fort Worth liens filed against any other property owned
by the applicant property owner/developer. "Liens" includes, but is not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens; and
d. of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to apply for release of City liens.
5. In order for a Rehabilitation Project to qualify for a release of city liens, the
owner/developer must spend Eligible Rehabilitation costs on the Property of at lease
30% of the Base Value of the Property.
B. WEED LIENS
The following are eligible to apply for release of weed liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3, Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties,
4. Developers constructing new multi-family, commercial, industrial, mixed-use or
community facility development projects.
C. DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval,
D. BOARD-UP/OPEN STRUCTURE LIENS
Adopted April 6, 2004 13
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
E. PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use,
or community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or
community facility projects.
V1. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections 111, IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Housing Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the Economic Development Office. The application fee, review,
evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy
Statement for Qualifying Development Projects.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS 111. IV, AND V
1. The Housing Department will review the application for accuracy and
completeness. Once the Housing Department determines that the application is
complete, the Housing Department will certify the property owner/developer's
eligibility to receive tax abatements and/or basic incentives based on the criteria set
forth in Section III_ IV., and V. of this policy, as applicable. Once an applicant's
eligibility is certified, the Housing Department will inform appropriate departments
administering the incentives. An orientation meeting with City departments and the
applicant may be scheduled. The departments include:
a. Housing Department: property tax abatement for residential properties and multi-
family development projects, release of City liens.
b. Economic Development Office, property tax abatement for commercial,
industrial, community facilities or mixed-use development projects.
c. Development Department, development fee waivers.
d, Water Department* impact fee waivers,
Adopted April 6, 2004 14
e. Other appropriate departments, if applicable.
2. Once Development Department, Water Department, Economic Development Office,
and/or other appropriate department receive a certified application from the Housing
Department, each departmentloffice shall fill out a "Verification of NEZ Incentives for
Certified NEZ Incentives Application" and return it to the Housing Department for
record keeping and tracking.
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties and Multi-family Development
Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified multi-family development project application for
more than five years of tax abatement:
(1) The Housing Department will evaluate a completed and certified application
based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women Owned Business Enterprises (MNVBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee.
Based upon the outcome of the evaluation, Housing Department may present
the application to the City Council's Economic Development Committee.
Should the Housing Department present the application to the Economic
Development Committee, the Committee will consider the application at an
open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to the application. Housing Department staff will
discuss the suggested modifications with the applicant and then, if the
requested modifications are made, resubmit the modified application to
the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement
application or 'Lax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
Adopted April 6, 2004 15
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January I of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
2. Property Tax Abatement for Commercial, Industrial, Community Facilities, and
Mixed-Use Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax
abatement agreement with the applicant.
b. For a completed and certified application for more than five years of tax
abatement:
(1) The Economic Development Office will evaluate a completed and certified
application based on:
(a) The project's increase in the value of the tax base.
(b) Costs to the City (such as infrastructure participation, etc.).
(c) Percent of construction contracts committed to:
(i) Fort Worth based firms, and
(ii) Minority and Women owned Business Enterprises (MNVBEs).
(d) Other items which the City and the applicant may negotiate.
(2) Consideration by Council Committee
Based upon the outcome of the evaluation, the Economic Development
Office may present the application to the City Council's Economic
Development Committee. Should the Economic Development Office present
the application to the Economic Development Committee, the Committee will
consider the application at an open meeting. The Committee may:
(a) Approve the application. Staff will then incorporate the application into a
tax abatement agreement which will be sent to the City Council with the
Committee's recommendation to approve the agreement; or
(b) Request modifications to the application, Economic Development Office
staff will discuss the suggested modifications with the applicant and then,
if the requested modifications are made, resubmit the modified application
to the Committee for consideration; or
(c) Deny the application. The applicant may appeal the Committee's finding
by requesting the City Council to: (a) disregard the Committee's finding
and (b) instruct city staff to incorporate the application into a tax
abatement agreement for future consideration by the City Council.
(3) Consideration by the City Council
The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abaternent
Adopted April 6, 2004 1 6
application or tax abatement agreement. The City of Fort Worth is under no
obligation to provide tax abatement in any amount or value to any applicant.
c. Effective Date for Approved Agreements
All tax abatements approved by the City Council will become effective on
January I of the year following the year in which a Certificate of Occupancy (CO)
is issued for the qualifying development project (unless otherwise specified in the
tax abatement agreement). Unless otherwise specified in the agreement, taxes
levied during the construction of the project shall be due and payable.
3. Development Fee Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Development Department will review the certified applicant's
application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council
approval, City staff will review the certified applicant's application and make
appropriate recommendations to the City Council.
4. Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application
and grant appropriate incentives.
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
5. Release of City Liens
For certified applications of release of City liens, the Housing Department will release
the appropriate liens.
VII. REFUND POLICY
In order for an owner/developer of a Project in a NEZ to receive a refund of development
fees or impact fees, the conditions set forth in the Refund of Development and Impact
Fee Policy, attached as Attachment "A", must be satisfied.
VIII. OTHER INCENTIVES
A, Plan reviews of proposed development projects in the NEZ will be expedited by the
Development Department,
B. The City Council may add the following incentives to a NEZ in the Resolution adopting
the NEZ:
1, Municipal sales tax refund
2. Homebuvers assistance
3. Gap financing
Adopted April 6, 2004 17
4: Land assembly
5. Conveyance of tax foreclosure properties
6. Infrastructure improvements
7. Support for Low Income Housing Tax Credit (LIHTC) applications
8. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
9. Tax Increment Financing (TIF)
10. Public Improvement District (PID)
11. Tax-exempt bond financing
12. New Model Blocks
13. Loan guarantees
14. Equity investments
15. Other incentives that will effectuate the intent and purposes of NEZ.
1X Public Notification
a. Subject to subsection (b), in order for an owner/developer to apply to receive any incentives
provided for under the NEZ Tax Abatement Policy and Basic Incentives, an
owner/developer must meet with the following persons and organizations to discuss the
Project:
1. the Council Member for the District the Project is located; and
2. the neighborhood associations or community based organizations registered with the
city in the NEZ the Project is located.
b. Subsection (a) shall be satisfied upon:
1. the owner/developer meeting with the City Council Member for the District the Project
is located and the neighborhood associations or community based organizations
registered with the city in the NEZ the Project is located; or
2. meetina, with the Citv Council Member for the District the Project is located and upon
the owner/developer providing proof that the owner/developer attempted to meet with
the neighborhood associations and the community based organizations registered with
the city in the NEZ the Project is located and the associations or organizations failed to
arrange a meeting with the owner/developer within two weeks of initial contact.
X. Ineligible Projects
The following Projects or Businesses shall not be eligible for any incentives under the City' of
Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives:
I. Sexually Oriented Businesses
2. Non-residential mobile structures
Adopted April 6, 2004 18
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES OLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City may
refund development and impact fees, normally waived through the Neighborhood Empowerment
Zone (NIEZ).
Applicability
Unless expressly excepted, this policy applies to all development and impact fees waived by the
City through the NEZ.
Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are authorized to
waive impact and development fees for qualified projects located in a designated NEZ. The
impact fees include only water and sewer impact fees, up to $55,000 for commercial, industrial,
mixed-use or community facilities projects. The development fees that can be 'waived through
the NEZ include:
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan,preliminary plat, final plat, short form replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letter from the
Housing Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control prevent
them from obtaining the qualification letter from the Housing Department.
A property owner and/or developer may qualify for a refund if the proposed development project
meets all criteria to receive a fee waiver under the NEZ Tax Abatement and Basic Incentives
Policy and:
a. The owner andlor developer was not made aware of the NEZ incentives at the time the
fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in a
designated NEZ; or
c. The ov,,ner and,/or developer has put funds in an escrow account with a City Department
while waiting a decision from the City Council about hisser project; or
d. City Council authorizes a City Department to issue a refund to the owner/developer.
Adopted April 6, 2004 19
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing Of refund check. The charge shall be 20% of the amount of the refund. This charge
will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normally waived through the
NEZ must be filed within ninety days following the date that the fees were paid. An applicant
who does not submit a refund request within 90 days of the transaction shall not qualify for a
refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Housing Department for determination of the eligibility for
NEZ fee waivers, and
• submit a written request to the Department in which the fees were paid. Upon receiving a
confirmation from the Housing Department that the project meets all NEZ fee waiver criteria,
that Department shall process the request based on the qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
c. City liens such as mowing, board-up, trash, demolition and paving liens.
C�
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the fees; or
b. The applicant does not meet the requirements for NEZ incentives at the time he/she paid
the fees; or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy, such
ordinances or regulations shall control. In the event of any conflict between this policy and other
policies or regulations adopted by the City Department issuing the refund, such department
policies or regulations shall control. The City reserves the right to deny any or all request for
refunds.
Adopted April 6, 2004 20
EXHIBIT B
Property (Legal) Description
3700 Westridge Avenue Ridgeway Manors Addition No. 3, Block AR
The property under consideration for tax abatement contains a 7.786 acre tract of land and is
described below:
Situated in the S.H. McEntire Survey, Abstract NO. 1006, Tarrant County, Texas, said tract
being part of Block A-R, Ridgeway Manors No. 3, Inc, an addition to the City of Fort Worth,
Texas according to the plat thereof recorded in Cabinet A, Slide 7061 of the Plat Records of
Tarrant County, Texas; said 7.786 acre tract being more particularly described as follows:
BEGINNING, at a V2-inch iron rod with "Pacheco Koch" cap set at the southeast comer of said
Block A-R; said point being at an angle point in the west right-of-way line of Bryant Irvin
Road North (a variable width right-of-way); said point being in the north line of Ridgeway
Manors No. I, Inc, an addition to the City of Fort Worth, Texas according to the plat recorded
in Volume 388-G, Page 126 of said Plat Records of Tarrant County, Texas; said point also
being Due West, a distance of 20.00 feet from the northeast comer of said Ridgeway Manors
No. 1, Inc. addition;
THENCE, Due West, departing the said west line of Bryant Irvin Road North and along the
said north line of Ridgeway Manors No. 1, Inc., a distance of 285.02 feet to a 1/2-inch iron rod
with "DAA" cap found at southeast comer of Ridglea Place, addition to the City of Fort Worth,
Texas according to the plat recorded in Cabinet A, Slide 8638 of said Plat Records of Tarrant
County, Texas;
THENCE, departing the said north line of Ridgeway Manors No. 1, Inc. and along the east line
and the north line of said Ridglea Place, the following five calls:
Due North, a distance of 209.58 feet to a V2-inch iron rod with "DAA" cap found at an
angle point;
North 45 degrees, 00 minutes, 00 seconds West, a distance of 115.14 feet to a V2-inch
iron rod with "DAA" cap found at an angle point;
Due West, a distance of 18.10 feet to a V2-inch iron rod with "DAA" cap found at an
angle point'.
Due North, a distance of 235.00 feet to a 1/2-inch iron rod with "DAA" cap found at the
northeast comer of Lot 1, Block 2R of said Ridglea Place;
Due West, a distance of 310.00 feet to a V2-inch iron rod with "DAA" cap found in the
east right-of-way line of Westridge Avenue (a variable width right-of-way); said point
being the northwest comer of said Lot 1, Bloch 2R; said point also being the beginning
1 9
of a non-tangent carve to the right whose center bears South 76 degrees, 13 minutes, 38
seconds East, a distance of 1563.30 feet from said point;
Page I of 3
THENCE, northerly along the said east line of said Westridge Avenue and along said non-
tangent curve to the right, through a central angle of 00 degrees, 46 minutes, 56 seconds, an arc
distance of 21.34 feet,, on a chord bearing and distance of North 14 degrees, 09 minutes, 50
seconds East, 21.34 feet, to a V2-inch iron rod with "Pacheco Koch" cap set an the end of said
curve from which point a 1/2-inch iron rod found bears North 35 degrees, 09 minutes East, 0.6
feet;
THENCE, North 14 degrees, 38 minutes, 00 seconds East, continuing along the said east line
of Westridge Avenue, a distance of 254.85 feet to a 1/2-inch iron rod with "DAA" cap found at
the northwest comer of said Block A-R; said point being the intersection of the said east line of
said Westridge Avenue with the south right-of-way line of Milbum Street (a 50 foot wide right-
of-way); said point also being the beginning of a non-tangent curve to the left whose center
bears North 14 degrees, 38 minutes, 00 seconds East, a distance of 464.63 feet from said point;
THENCE, easterly along the said south line of Milbum. Avenue and along the north line of said
Block A-R, the following seven (7) calls:
In an easterly direction, along said non-tangent curve to the left, through a central angle
of 14 degrees, 38 minutes, 00 seconds, an arc distance of 118.67 feet, on a chord bearing
and distance of South 82 degrees, 41 minutes, 00 seconds East, 118.34 feet, to a 1/2-inch
iron rod with "DAA" cap found at the end of said curve;
Due East, a distance of 161.55 feet to a 1/2-inch iron rod with "DAA" cap found at the
beginning of a tangent curve to the right;
In an easterly direction, along said tangent curve to the right, having a radius of 66.00
feet, through a central angle of 09 degrees, 19 minutes, 27 seconds, an arc distance of
10.74 feet, on a chord bearing and distance of South 85 degrees, 20 minutes, 16 seconds
East, 10.73 feet, to a V2-inch iron rod with "Pacheco Koch" cap set at the end of said
curve;
South 85 degrees, 20 minutes, 16 seconds East, a distance of 105.66 feet to a 1/2-inch iron
rod with "DAA" cap found at an angle point;
South 83 degrees, 55 minutes, 00 seconds East, a distance of 85.32 feet to a 12-inch iron
rod with "Pacheco Koch" cap set at the beginning of a tangent curve to the left;
In an easterly direction, along said tangent curve to the left, having a radius of 625.00
Z:�
feet, through a central angle of 04 deg r ees, 26 minutes, 00 seconds. an arc distance of
48,36 feet, on a chord bearing and distance of South 86 degrees, 08 minutes, 00 seconds
East, 48.35 feet, to 1/2-inch iron rod with "DAA" cap found at the end of said curve-,
Page 2 of 3
South 88 degrees, 21 minutes, 00 seconds East, a distance of 96.96 feet to a V2-inch iron
rod with "Pacheco Koch" cap set at the northeast comer of said Block A-R; said point
being at the intersection of said south line of Milburn Street with said west line of Bryant
Irvin Road North (an 80 foot right-of-way at this point);
THENCE, Due South, departing the said south line of Milburn Street and along the said west
zn
line of Bryant Irvin Road North, a distance of 753.64 feet to the POINT OF BEGINNING;
Page 3 of 3
FoRT WO T R ff EXHIBIT (-
Application No,
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION-APPLICATION
FORNI C FOR DEVELOPMENT PROJECTS
APPLICATION CHECK LIST
Please submit the following documentation:
-A completed application form
❑ A list of all properties owned by the applicant in Fort Worth
Application fee — cashier's check or money order(For tax abatement applications only.
For multifamily, commercial, industrial, commercial facilities, and mixed-use tax
abatement applications: 0.5% of the total Capital Investment of the project, not to exceed
$1,000.00; For single family tax abatement applications: $25 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
Title abstract of the property (optional)
For Rehabilitation Proiects Only:
❑ A completed set of Rehabilitation (Remodel) Plan and a list of eligible rehabilitation
costs*. (for applications of tax abatements and development fee waivers for rehab
projects only)
Eligible rehabilitation includes only physical improvements to real property. It does NOT include personal
Property such as furniture, appliances, equipment, and/or supplies. Total eligible rehabilitation costs shall equal
to or exceed 30% of the Tarrant Appraisal District (TAD) appraised value of the structure during the year
rehabilitation occurs.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERIMITS ARE ISSUED FOR
YOUR PROPERTY.
IL APPLICANT AGENT INFORMATION
I. Applicant:
Contact
3. Address:
--------7rX
City ity State Zip
4. Phone no.:
5. Fax No.:
6, Email:
7. Agent (if any)
S. Address:
Street City State Zip
9. Phone no.: 10. Fax No.:
I I. Email:
It you need further information or clarification, please contact Jamie Warner at (817) 392-7507 or
Elizee Michel at(817)392-7336.
Exhibit D
PROJECT DESCRIPTION
Two hundred and forty-four(244) unit, apartment complex:
Eleven 3-story buildings containing a mix of the following units:
40 One-bedroom(604 s.f.) 32 Two-bedroom (1008 s.f.) 11 three-bedroom (1299 s.f.)
29 One-bedroom (680 s.f.) 21 Two-bedroom(1096 s.f.)
32 One-bedroom (714 s.f.) 28 Two-bedroom (1140 s.f.)
21 One-bedroom (756 s.f.) 1 Two-bedroom (1128 s.f.)
29 One-bedroom (852 s.f.)
Features
Nine-foot ceilings
Crown molding
Ceiling fans in the living area and each bedroom
Kitchen appliances
High speed Internet and cable hook-ups in each unit
Washer and dryer connections
Exterior: modular masonry and stucco
Clubhouse with business center, library, covered porches, pool with exterior fireplace, fitness center
laundry room, and maintenance room
Four hundred and twelve concrete parking spaces consisting of garages (45), carports (22), and
open spaces (345)
Wrought iron fencing
Heavy landscaping along Bryant Irvin both for visual effect and noise buffers
Page l0fl
Garcia Cynthia B ~-
From: pierce [dpieroe@pie/cearchihnctuoeoet]
Sent Thursday, June 1U. 2OO42:O1PyW
To: Gorcia, Cynthia B.
Subject: riven/mwothdg|eeelevation
Cynthia.
The revised elevation we presented indicated brick veneer(reddish in color)where we had previously indicated stone on
the street facades of buildings.
VVe added column details at the balconies, keystones on window trim, additional shutters, limited areas of siding, and e
minimum of two chimneys per building on street facades.
The roof planes were further segmented from the original design.
David M. Pierce, A|A
Principal
Pierce Architecture LLC
1520 Elm Street
Suite 204
Da||an, Texas 75201
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Page 1 of 3
City of Fort Worth, Texas
Mayor and Council Communication
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COUNCIL ACTION: Approved As Amended on 6/812004 - See Attachment ; Ordinance No.
15993
DATE: Tuesday, June 08, 2004
LOG NAME: 05NRTHAMPT REFERENCE NO.: G-14379
SUBJECT:
Public Hearing for Designation of Fort Worth Neighborhood Empowerment Reinvestment Zone No.
18 and Tax Abatement Agreement with River View at Ridglea, L.P. and Related Findings of Fact by
the City Council
RECOMMENDATION:
It is recommended that the City Council:
1. Hold a public hearing concerning the designation of 7.786 acres of vacant land, as described in
Appendix A, as Fort Worth Neighborhood Empowerment Reinvestment Zone (FWNERZ) No. 18; and
2. Adopt the attached ordinance which designates FWNERZ No. 18 pursuant to the Texas Property
Redevelopment and Tax Abatement Act, Tax Code, Chapter 312; and
3. Find that the statements set forth in the recitals of the attached Tax Abatement Agreement with River
View at Ridglea, L.P. are true and correct; and
4. Authorize the City Manager to enter into the attached Tax Abatement Agreement with River View at
Ridglea, L.P. in accordance with the Neighborhood Empowerment Zone Basic Incentives, as amended.
DISCUSSION:
I. Public Hearing and Ordinance on Neighborhood Empowwerment Reinvestment Zone Designation
One of the incentives a municipality can provide in a Neighborhood Empowerment Zone (NEZ), according
to Chapter 378 of the Texas Local Government Code, is an abatement of municipal property taxes for
properties in the NEZ. It is proposed that the subject property described in Appendix A is be designated as
FWNERZ No, 18 so the City can enter into a tax abatement agreement under the guidelines set forth in the
Tax Code.
A public hearing is required by the Texas Property Redevelopment and Tax Abatement Act (the Act). Notice
of today's public hearing was (1) delivered to the governing body of each affected taxing unit, and (2)
published in the newspaper at least seven days prior to this meeting. The Act requires the property
receiving a tax abatement to be located in a reinvestment or enterprise zone.
The proposed area meets the criteria for the designation of a reinvestment zone. As a result of the
designation, the area will contribute to the retention or expansion of primary employment and attract major
investment in the zone that would be a benefit to the property and contribute to the economic development
of the municipality, Further, future improvements in the zone would be a benefit to the City after any Tax
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Page 2 of 3
Abatement Agreements that may be entered into have expired.The proposed FWNERZ No. 18 expires after
five years and may be renewed for periods not to exceed five years.
11. Tax Agreement with River View at Ridglea, L.P.
The property subject to abatement in the attached Tax Abatement Agreement with River View at Ridglea,
L.P. is located in west Fort Worth in the Ridglea Village/Como NEZ. This property is located in
Neighborhood Empowerment Zone No. 2 and is proposed to be designated as Fort Worth Neighborhood
Empowerment Reinvestment Zone No. 18. This reinvestment zone is located in Council District 3.
Project
River View at Ridglea, L.P. is proposing to construct a 244-unit multi-family apartment complex on the
7.786-acre site. Forty-nine of the units will be set aside for persons at or below 80% area median income
(AMI). The total investment is estimated at $17,000,000, and the construction cost, which will be the basis
of the tax abatement, at$12,720,000.
TAX ABATEMENT TERMS
The tax abatement is structured as follows:
Amount and Limitation of Abatement
The actual amount of the abatement granted under the agreement shall be based upon the value of the
improvements constructed on the subject site, but will not include the value of the site itself. The abatement
in any given year shall be based on the increase in value of the required improvements up to a maximum of
$16,500,000. The estimated amount of the abatement over the 10 year term is $1,093,251.
Duration of Abatement
The tax abatement will be in effect for ten years. The developer will be eligible to receive 100% abatement
on the eligible basis for the first five years, and receive tax abatement on the eligible basis for years six
through ten up to a rate of 100% dependent upon meeting specific performance measures.
Commitments and Reduction of Basis for Years one to five
The information below indicates the developer's commitment under the agreement and the corresponding
reduction to the abatement if the commitment is not met during years one through five.
Minimum Investment Default
20% set-aside (loss of abatement for each year not in compliance) 100%
Commitments and Proportionate Reduction for Years six to ten
The information below indicates the developer's commitment under the agreement and the corresponding
reduction to the abatement during years six through ten.
0 30% of Total Construction to Fort Worth Businesses 0-20%
0 251 of Total Construction to Fort Worth M/WBE Contractors 0-20%
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15% of the 25% of the construction cost to Lake Como M/WBE 0-10%
10 construction jobs for Lake Como residents 10%
$65,000 in annual Fort Worth based service contracts 0-5%
Landscaping, tenant selection, management plan and passing of yearly inspection by *10%
20% set-aside for affordable housing 0-20%
Six permanent jobs, three to Fort Worth of which two shall be from the Lake Como area *0-
5%
*Audit yearly from year one but assess penalties during years six through ten.
The project proposes to create 500 construction jobs (at least 10 for Lake Como residents) and at least six
permanent jobs (three jobs for Fort Worth residents, two of which are to be from the Lake Como area),
invest more than $17,000,000 in Fort Worth, contract $3,816,000 with Fort Worth contractors, and contract
$3,180,000.00 with M/WBE firms.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that no expenditure of City funds is associated with the approval of this
agreement.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by Reid Rector(6140)
Originating Department Head: Jerome Walker(7537)
Additional Information Contact: Jerome Walker(7537)
http://www.cfWnet.or,g/council packet/Report s/mc printasp 6/12/2004
FORT WORTH
III. PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other properties your
organization owns in Fort Worth. Attach metes and bounds description if no address or
legal description is available. Attach an exhibit showing the location of the project.
Table I Pro erty Owners hi
Address Zip Legal Description
Code I Subdivision Lot No. Block No.
(Project Location)
R',v Q T 1 cif` t In l I to _ t ❑
(Please attach additional sheets of paper as needed.)
2. For each properties listed in Table 1, please check the boxes below to indicate if:
• there are taxes due; or
• there are City liens; or
• you have been subject to a Building Standards Commission's Order of Demolition where the
property was demolished within the last five years.
Table 2 Property Taxes and Ci Liens
Address Property City Liens on Property
Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
I�Ivlqr ,vlew OJ ❑ ❑ ❑ ❑
F-1 Li I F� I F-1
El F-1
F] 1 [1 ❑ F-1 ❑ 1 0
❑ El
El
Li
........................... ---
_j
(Please attach additional sheets of paper as neede11)
3. Do you own other properties under other names? ❑ Yes [;—, 'o
if Yes, please specify
4. Does the proposed project conform with City of Fort Worth Zoning! No
If no, what steps are being taken to insure compliance?
5. Project Type: El
S;ngl e vlulti- Commercial Industrial Communirv, Mixed-Use
Family family Facflaies
41
FORT WORTH
6. Is this a new construction or rehab project?
ZN1ew Construction ❑Rehab
7. Pnat is the status of your project?
Planning Stage ❑Under Construction ❑Completed
8. If your project has been completed, when was it completed)
9. How much is the total development cost of your project?
��� t�
4! Ji I
10. Will the rehabilitation work* equal to at least 30% of the Tarrant Appraisal District
(TAD) assessed value of the structure during the year rehabilitation occurred?
F-1 Yes [_J No
*Only physical improvements to real property is eligible. DO NOT include personal property such as
furniture, appliances, equipment,and/or supplies.
11. How much is the total square footage I of your project? square feet
12. For a single family homeownership, mixed-use, or multi-family,development-project, 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 Ran e of Owners or Renters
At or below 80% of AMFI
1.Area Median Family income. Please see attachment for income and housing payment guidelines.
13. For a multifamily project to be qualified for tax abatement, at least 20%of total units shall
be affordable to families at or below 80%of ANWI. Check the box if you are requesting a
-waiver of this requirement. ❑
14. for a commercial, industrial or community facilities 11[2iect, indicate square footage of
non-residential space.
Commercial Industrial Community Facilities
square feet 'y 1'n square I-_7 suare ft __& square feet
PLEASE ANSWER QUESTIONS NO.10 TO NO. 12 ONLY IF YOU ARE APPLVING
FOR A TAX ABATEMENT.
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 Ca ital Investment of the Pro'e t
L
----------
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FORT WORTH
"Capital Investment includes only real property improvements such as new facilities and,structures, site
improvements, facility expansion, and facility modernization. Capital Investment DOES NOT include
land acquisition costs and,or any existing improvements, or personal property (such as machinery,
equipment, and/or supplies or inventory).
16. For a commercial, industrial, community facility or mixed-use project, how many
employees will the project generate?
17. For a mixed:use rcje�ct, please indicate the percentage of all uses in the project in the
following table.
Table 5 Percentage of Uses in a Mixed Use Project
pg�
R
R Nod.- _ercen
Residential -2,4241, RZI-1
Office
Eating
Entertainment
Retail sales
Service
dte IV V -Ji
�j p P7
owi=77
IV. INCENTIVES
1.What incentives are you applying for?
Municipal Property Tax Abatements
❑ 5 years
2"More than 5 years
Development Fee Waivers
All building permit related fees(including Plans Review and Inspections)
Plat application fee(including concept plan,preliminary plat, final plat, short form,replat)
Board of Adjustment application fee
Demolition fee
Structure moving fee
Community Facilities Agreement(CFA)application fee
Zoning application fee
Street and utility easement
Impact Fee Waivers
�z T mpact fee waiver
Meter Size, How many meters? -T
Release of City Liens
Weed liens
L 17
vl'
Board up/orp-en stnucture fiens,
'` De olition leas
j Paving liens
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SORT WORTH
V. ACKNO),VLEDG.N1FNTS
I hereby certi6' 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 agree to provide any additional info n for determining eligibility as requested by the City.
260
(TYPED NAME) (RUTH RI SIGNAT (DATE)
. ..........I .......
"S
Electronic version of this form is available by request. Please call 817-392-7507 to request a copy. For more
information on the NEZ Program,please visit our web site at www.fortworthgov.org/housing.
For Office Use Ounli
Application No. In which NEZ? AV I Council District
Application Completed Date (teeived Date): Conform with Zoning? D Yes EJNo
Type? ❑ SF X Multifamily 0 Commercial Industrial 0 Community facilities 0 Mixed-Use
Construction completion date? El Before NEZ After NEZ Ownership/Site Control 0 Yes ❑No
TAD Account No. 07uff&'�/_ Consistent with the NEZ plan? X Yes F]No
Meet affordability test? Yes Q No Minimum Capital Investment? 19 Yes No
Rehab at or higher than 30%? Yes No Meet mixed-use definition? D Yes No
Tax current on this property? j Yes ]No Tax current on other properties? X1 Yes No
City liens on this property? City liens on other properties?
• A,"eed liens Yes 1%N, 0 • Weed liens L' Yes IX:1 No
• Board-upiopen structure liens Yes Xr !Nr 0 * Board-up/open structure 'liens Yes X No
• Demolition liens Yes 9, No * Demolition liens Yes X!l No
• Paving liens IrEi Yes EX No • Paving liens Yes
X No
• Order of demolition El Yes LY No * Order of demolition Yes X
Certified? % Yes LNo Certified by Date certification issued?
If not
_71Developt-11
Refie�-,ed to. XlEcornon- r
ic Develop nie �t X Howusing ent Xwater �&'IC o d e 'gril"Fpw
Revised April 15,2003
4
t.
FORT WORTH
ATTACHMENT INCOME AND HOUSING PAYMENT GUIDELINES
Family Size 80%of Median Income* Maximum Housing Payment Affordable
for Individuals or Families at 80%of
Median Income
1 $34,350, $859
2 $39,250 $981
3 $44,150 $1,104
4 $49,050 $1,226
5 $52,900 $1,323
6 $56,900 $1,423
7 $60,800 $1,520
8 $64,750 $1,619
*Source: 2002 Fort Worth-Arlington PMSA HUD Income Guideline
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