HomeMy WebLinkAboutContract 45607 a
CITY SECRETARY -
CONTRACT NO,
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
5651 E. Lancaster
This TAX ABATEMENT AGREEMENT NT ("Agreement") is entered into by and between
the CITY of FORT WORTH TEXAS the "City"), a home rule municipal corporation organized
under the laws of the State of Texas and acting by and through T.M. Higgins, its duly authorized City
Manager, and MSRS Lancaster L.P., a Texas limited partnership, owner of property located at 5651
E. Lancaster, Tract 1, Lot 1-A., Brown Hat-wood Subdivision, in the City of Fort Worth, Tarrant
County, Texas, and as shown on the plat recorded in Volume 388-27, page 63, Tarrant County,
Teas.
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 3 of the Texas Local Government Code allows a municipality to create
neighborhood empowerment zone if the municipality determines that the creation of the zone would
promote:
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
tapes on property in the zone.
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C. on ,duly 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a Neighborhood Empowerment ,done,, stating that the City elects to be J
eligible to participate In tax
abatement and including guidelines and criteria governing tax abate ment
agreements entered into between the City and various third pat-ties, titled "Neighborhood I
Empowerment .done "NEZ .basic Incentives' "NEB Incentives"), these were readopted on May
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21 2013 (Resolution: To. 4209).
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DID, The NEZ Incentives contains appropriate guidelines and criteria g overning taxJ`
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax �
Code, as amended(the "C'ode's).
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Ea, on December,7 201 o the Fort Worth.City Council adopted ordinance go, 1 9461 the l
CD "Ordinance")nance") establishing "Neighborhood Empowerment Reinvestment Zone No. R" City of Fort �
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`North, Texas (the "Zone") and adopted Resolution No. 3945 establishing "Designation of the
Historic Handley Area as a Neighborhood Empowerment Zone's (the "NEE"). �
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Neighborhood Empowerment Zone Tax Abatement 0!,' 11"1
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F, owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit "2", attached hereto and hereby made a part of this Agreement for all
purposes (the "Premises").
G. owner or its assigns plan to redevelop/remodel an existing building, Required
Improvements, as defined in Section 1.1 of this Agreement, on the Premises (the "Project").
H. on February 25, 2014 owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "Y' and hereby made a part
of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terms of this Agreement are consistent with encouraging development of the
.Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives,
the ordinance and other applicable laws, ordinances,rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy
the eligibility criteria of the NEZ Incentives.
K. written notice that the City intends to enter into this Agreement, along with a copy of
this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of
the governing bodies of each of the taxing units in which the Premises is located.
NOW, THEREFORE, the City and owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of an interior and exterior remodel of(i) an existing 5200 square foot
building; and (ii) having a construction cost upon completion of$582,000.00 including site
development costs but such minimum construction costs shall be reduced by any construction
cost saving (collectively, the "Required Improvements"). The type, number and location of
the Required Improvements are described in Exhibit "4". Tarrant Appraisal District must
appraise the property (improvements and land) within 10% of $582,000.00. owner shall
provide a copy of the final construction invoices to City once the construction is complete,; the
construction invoices shall be a part of this Agreement and shall be labeled Exhibit"5". Minor
variations, and more substantial variations if approved in writing by both of the parties to this
Agreement, in the Required Improvements from the description provided in the Application
for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1,provided
that the conditions in the first sentence of this Section 1.1 are met and the Required
Improvements are used for the purposes and in the manner described in Exhibit"4".
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Neighborhood Empowerment Zone Tax Abatement
MSRS Lancaster LP, M&C C-2675.9
1.2. Completion Date of Reguired Impy,ovements.
Owner covenants to complete construction of all of the Required Improvements by
April 8, 201 (the "Completion Deadline"). The Required Improvements shall be deemed
complete upon the issuance of a final certificate of occupancy for the Required Improvements
by the Planning and Development Department. Provided however, if the Owner fails to
complete construction of the Required Improvements by the Completion Deadline or fails to
expend at least Five Hundred Eighty Two Thousand Dollars ($582,000.00 in Construction
Costs for the Required Improvements by the Completion Deadline as provided in Section 1.1
of this agreement; the City shall have the right to terminate this Agreement by providing
written notice to the Owner without further obligation to the Owner hereafter.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be rehabilitated/remodeled
and the Premises shall be continuously used as a Medical, Dental and Chiropractic Center
and in accordance with the description of the Prof ect set forth in the Exhibit 'W'. 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.
20 ABATEMENT AMOUNTS, TIERMS AND CONDITIONS.
Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2 ("'Abatement"). "Abatement" of real property taxes only includes City of Fort Worth-
imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Premises and the Required Improvements over their
values on April 8. 2014, and this amount is $578,816.00, the year in which this Agreement
was entered into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that
such minimum construction costs shall be reduced by construction cost savings, Owner,
shall not be eligible to receive any Abatement under this Agreement.
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Neighborhood Empowerment Zone Tax Abatement
M&C C-26759
MSRS Lancaster LP,
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements and shall not apply to taxes on the land, nor
shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the Premises
over its value on April 8, 2014, including the Required Improvements, up to a maximum of
$873,000.00. In other words, by way of example only, if the increase in value of the Premises
over its value on April 8, 2014, including the Required Improvements, in a given year is
$907,000.00, owner's Abatement for that tax year shall be capped and calculated as if the
appraised value of the Premises for that year had only been$873,000.00.
2.4. Protests over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements ("Beginning Date") and, unless sooner terminated as herein
provided, shall end on December 31 immediately preceding the fifth (51h)
anniversary of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS AUDITS AND EVALUATION OF PROJECT,
3.1. Inspection of Pre ices.
Between the execution date of this Agreement and the last day of the Term and for five
(5) years after termination ("Compliance Auditing Term"), at any time during normal office
hours throughout the Term and the year following the Term and following reasonable notice
to owner, the City shall have and owner shall provide access to the Premises in order for the
Ci ty to inspect the Premises and evaluate the Required Improvements to ensure compliance
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MSRS Lancaster LP, M&C C-26759
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with the terms and conditions of this Agreement. owner shall cooperate fully with the City
during any such inspection and/or evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of owner that relate to the Project and Abatement terms and conditions
(collectively, the "Records") at any time during the Compliance Auditing Term in order to
determine compliance with this Agreement and to calculate the correct percentage of
Abatement available to owner. owner shall mare all applicable Records available to the
City on the Premises or at another location in the City following reasonable advance notice
by the City and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before March 1 following the end of every year during the Compliance
Auditing Term and if requested by the City, owner shall provide information and
documentation for the previous year that addresses owner's compliance with each of the
terms and conditions of this Agreement for that calendar year. This information shall
include, but not be limited to, the number and dollar amounts of all construction contracts
and subcontracts awarded on the Project.
Failure to provide all information ivithin the control of owner required by this Section 3.3
shrill constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Terra, the City
shall male a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Terra and shall notify owner of such decision and
ruling. The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon owner's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
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4.1. Defined.
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Unless otherwise specified herein, Owner shall be in default of this Agreement if(1)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem
real property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and
Owner does not timely and properly follow the legal procedures for protest and/or contest of £.
any such ad valorem real property or tangible personal property taxes or (iii) Ow1WR DOES
NOT COMPLY WITH CHAPTER? AND APPENDIX B OF THE CODE OF
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MSRS Lancaster LP, M&C C-26759
ORDINANCE of THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
Owner shall have ninety (60) calendar days from the date of receipt of this written notice to
fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will
require additional time to cure the Event of Default, Owner shall promptly notify the City in
writing, in which case (i) after advising the City Council in an open meeting of Owner's
efforts and intent to cure, Owner shall have one hundred eighty (180) calendar days from the
original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner
will require more than one hundred 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, which is defined in Section 4.1, has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate
this Agreement immediately. Owner acknowledges and agrees that an uncured Event of
Default will (1) harm the City's economic development and redevelopment efforts on the
Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional
administrative oversight and involvement by the City; and (iii) otherwise harm the City, and
Owner agrees that the amounts of actual damages there from are speculative in nature and will
be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any
Event of Default, Owner shall not be eligible for the Abatement for the remaining Term and
Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with
this Agreement for each year when an Event of Default existed and which otherwise would
have been paid to the City in the absence of this Agreement. The City and Owner agree that
this amount is a reasonable approximation of actual damages that the City will incur as a result
of an uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by the
City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal
district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing
and paid to the City within sixty (60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within
sixty (60) days following the effective date of termination of this Agreement, Owner shall also
be liable for all penalties and interest on any outstanding amount at the statutory rate for
delinquent taxes, as determined by the Code at the time of the payment of such penalties and
interest.
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MSRS Lancaster LP, M&C C--26759
4.4. Termination at will.
If the City and Owner mutually determine that the development or use of the
Premises or the anticipated Required Improvements are no longer appropriate or feasible, or
that a higher or better use is preferable, the City and owner may terminate this Agreement in
a written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii) there
shall be no recapture of any taxes previously abated; and (iii) neither party shall have any
further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package Stores.
a. owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Company may assign this Agreement and all or any portion of the benefits provided
hereunder to an Affiliate without the consent of the City, provided that (i) prior to or
contemporaneously with the effectiveness of such assignment, Company provides the City with
written notice of such assignment, which notice shall include the name of the Affiliate and a contact
name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and
conditions of Company under this Agreement. For purposes of this Agreement, an "Affiliate"
means all entities, incorporated or otherwise, under common control with Company, controlled by
Company or controlling Company. For purposes of this definition, "control" means fifty percent
(50%) or more of the ownership determined by either value or vote. Company may not otherwise
assign this Agreement or any of the benefits provided hereunder to another party without the
consent of the City Council, which consent shall not unreasonably be withheld or delayed, provided
that (i) the City Council finds that the proposed assignee is financially capable of meeting the terms
and conditions of this Agreement and (ii) the proposed assignee agrees in writing to assume all
terms and conditions of Company under this Agreement. Any attempted assignment without the
City Council's prior written consent 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.
In no event shall the abatement term be extended in the event of a subsequent sale or
assignment.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
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Neighborhood Empowerment Zone Tax Abatement
MSRS Lancaster LP, M&C C-26759
city. Owner.
City of Fort Worth MSRS Lancaster LP
Attn: City Manager Attn.- Ramin S iro o sian
1000 Throckmorton PO Box 701359
Fort Worth, Tx 76102 Dallas, Texas 75370
and
Housing and Economic Development Department
Attn: Jay Chapa
1000 Throckmorton
Fort Worth,, Tx 76102
7, MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations,, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit"4",the body of
this Agreement shall control. As of April 8, 2014, the City is unaware of any conflicts
between this Agreement and the City's zoning ordinance or other ordinances or regulations.
7.4.
Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
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Neighborhood Empowerment Zone Tax Abatement
MSRS Lancaster LP, M&C C-26759
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-26759 on April 8, 2014, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
7.5. 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.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions, or City Council actions authorizing this Agreement and owner shall be entitled
to intervene in any such litigation.
7.5. venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas
and applicable ordinances, rules, regulations, or policies of the City. venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County, Texas.
7.9. S everabilt .
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
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not be deemed a part of this Agreement.
7.11. Entirely of Agreement.
F
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
F=
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Neighborhood Empowerment Zone Tax Abatement
u
MSRS Lancaster LP M&C C-25759
5-'.
the City and Owner, their assigns and successors in interest,, as to the matters contained
herein. Any prior or contemporaneous oral or written agreement is hereby declared null and
void to the extent in conflict with any provision of this Agreement. This Agreement shall
not be amended unless executed in writing by both parties and approved by the City
Council. This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one 'instrument.
CITY OF FORT WORTH:
y. By:-MSRS Lancaster L.P.
Fernando Costa a Texas Limited Partnership
Assistant City Manager
By: MS RS Lancaster GP LLC
Its general partner
By.
Ramin Siroosian
Member
ATT S6— !F)2 ot
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Bye
,,,,,?,Mary Kayser
ozxq
City Secretary
46�
APPROVED AS TO FORM AND LEGALITY:
rd
By:
Melinda Ramos
Sr. Assistant City Attorney
M & C: C-26759
Page 10 of 12 '111h,
Neighborhood Empowerment Zone Tax Abatement
MSRS Lancaster LP', M&C C-26759
STATE TEXAS
COUNTYOFTARRANT §
BEFORE I'VE, the undersigned ut •*t , on this day personally appeare ernando Costa,
.Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, Imown to me to
he 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, T'EXAS,, 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 xpr ss and in the capacity therein stated.
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IVEI UNDER Y HAND N SEAL F OFFICE this ��I�� �
day of
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12014.
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Notary ublic in and for
ROSES BARNES
y M'= MY COMMISSION EXPIRES
the State of Texas March 31,2017
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Notary's Printed Name
STATE TEXAS
COUNTY OF TARRANT
BEFORE ME, the undersigned authority, on this day personally appeared Ram in Sirooslan,
Member of 1 SRS Lancaster LP, known to me to he 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 MSRS
Lancaster LP, MSRS Lancaster GP LL C.
IVEN DER MY HAND AND SEAL OF OFFICE this day of
00
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Notai y ublie in and f i
The State of Texas ,.
My COMMISSION EXPIRES
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ovembe r 5j 2015
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OF
Notary's Printed Name
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Neighborhood Empowerment Zone Tai Abatement
SRS Lancaster LP, M&C C-26759
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description including kind, number, and details of the proposed
improvements.
Exhibit 4: Final Construction Invoices
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MSRS Lancaster LP, M&C C--26759
Exhibit"1"
Property Description
5651 E. Lancaster, Tract 1, Lot 1--A, Brown Harwood Subdivision, in the City of Fort
Worth, Tarrant County, Texas, and as shown on the Plat recorded in volume 385-27, Page
63, Tarrant County, Texas.
Exhibit 2
FORTWORTH Application No,
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) PROGRAM
PROJECT CERTIFICATION APPLICATION
I. , PPLICATION CHECK LIST � Please submit the following documentatiow
A completed application form
A. list of all properties owned by the applicant,owner,developer,associates,principals,partners,and agents
in the City Fort Worth
[� Non Refundable Application fee--For all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00.For multifamily,commercial,industrial,commercial facilities,and mixed-use tax
abatement applications:0.5%of the total Capital Investment of the pro,ect,with a$200.00 minimum and
not to exceed$ ,000,00;For residential tax abatement applications;$100.00 per house.
V/100� Proof of ownership,such as a warranty deed,affidavit of heirship,or a probated will OR evidence of site
control,such as option to buy(A registered warranty deed is required for tax abatement application.)
❑ Title abstract of the property(only if applying for release of City liens)
A reduced 11 x1 7 floor plan,site Ian,and site elevation with -+PPP
a written deta�e praj t de ipti n that inclu cre s a construction time tine
A detailed line item budget showing the cost breakdown for the project
Copy of Incorporation Papers noting all principals,partners,and agents if applicable
❑ Required-Meet with the Councilmember and Neighborhood&other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Guidelines revised April 6,2004 or
followed guidelines of NEZ Strategic Plan if a Strategic Plan is in place for the specific NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located in Woodhaven NEZ only)
INCOMPLETE APPLICATIONS WILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHO'R'N IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS AFTER THE
APPLICATION IS RECEIVE,D.
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MADE TO YOUR PROPERTY, IT 'TAKES 60 TO 90
BUSINESS DAYS TO COMPLETE THE TAX ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXITY OF YOUR PROJECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE 12 MONTH PERIOD THAT CERTIFICATION WAS
APPROVED,OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVED,€ R YOU
WILL BE REQUIRED TO RE4PPLY FOR NEZ INCENTIVES.
111, APPLICANT 1 AGENT INFORMATION
Iw Agpls canrt, 2. Contact Person; l' � i•�--
Applicant:
3. Address:
Street City State Zip
4. Phone no.: z1 W-5,7.9'3X_1 5. Fax No.: -- �
6. Email: 66�1,
o 6 ba t,
7. Agent Qif any)
$, Address: - ' €
Street City State Zip
9. Phone no.: 7�5;, 10. Fax No,:
11, Email: �.-gA-1eR'41 YA C�;^Cb(yl
Revised July f 2,201 I 1
f
FORTWORTH Application No.
PROJECT ELIGIBILITY
1. Please list down the addresses and legal descriptions of the project and other properties your
organization owns in Fort Worth. Attach metes and bounds description if no address or legal
description is avaYlalrle. Attach a reap showing the location of the project.
Table 1 Propery Ownership
Address Zip Code Lem 08rriptinn
(Project Location Subdivision Name Lot No. Block No.
IderW
..................
Other properties owned in the City of Fort worth -continue on a separate sheet and attach of necessary..
2. For each property list in Table 1,please check the boxes below to indicate if:
• there are taxes past due;or
+ there are City liens;or
• You (meaning the applicant, developer, associates, agents, principals) have been subject to a Building
Standards Commission's Order of Demolition where the property was demolished within the last five
years.
Table 2 Proper Taxes and City Liens
Property City Liens on Property
Address Taxes Weed Board-up/Open Demolition Paving Order of
Due Liens Stucture Liens Liens Liens Demolition
-.7i ................
❑ ❑
El ❑
\\\A/ ❑ El-
V\ El El -D 1 1:1
El 11 Li El 1:1 -El-
El El El El El
El El- El 0 ❑
El L1 ❑ ❑ 11
(Please attach additional sheets of paper as needed.)
If there are taxes due or liens against any property in the City of Fort worth you mgy not be eligible
for NEZ incentives
Revised July 12,2011 2
i
FoRTWORTH Appkation No,
3, Do you own other properties under other names? ❑Yes No
If Yes,please specify
4. Ides the proposed project conform with City of Fort worth Zoning? Yes [:1 No
If no,what steps are being taken to insure compliance?
5. Project ❑ ❑ ❑ ❑ ❑
Type: Single Family M!alti-Family Commercial Industrial Community facilities Muted-Ise
Owner Occupied
Ren[il Property
60 Please describe the proposed residential or commercial project:
11 7. If your project is a commercial,industrial,or mixed- a project,pie se de cribe th types of �--
r' t-,
businesses that are being proposed.
$. Is this a new construction or rehab project? ❑New Construction 41ehab
9. How much is the total development cost of your project? ��....
10. Will the eligible rehabilitation work* equal to at least 30% of the Tarran Appraisal District(TAB])
assessed valve of the structure during the year rehabilitation occurs? Yes ❑No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT include:
Front yard fencing consisting of chain-link or solid material construction;personal property such as furniture,
appliances,equipment,and/or supplies.Total eligible rehabilitation costs shall equal to or exceed 30%of the
TAIL appraised value of the structure during the year rehabilitation occurs.
11.How much is the total square footage of your project? square feet
y i':4iY.°.i' ;'i,,�,i. ii��x l.�i; ::;1_r :J=;• ,.0,:=ti,,`, �i�r.iiti' Zr-.Y='e-;'+'f::-a r',}'iy..'''`,:.; !' e.'aJ�l ,••' �[. a.
en
'.ti i a :;Il[lee tee
�r
Xf:a l
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•!. •.r` .ri'rtZ`� ::I.�VL-r�r'. r.t�-t- .Z=-'.t•- i2... S�j-.i=.. '•� r a a t-.-;. •sue E� a is•� •t'
r`. k _Y•1 �•)✓ I��.1!�..•�., I 1-•. 1 w h �I-.7-' \r•
12.For a single-family homeownership, mixed-use, or multi-fami!X develo ment prokc t, please fill out
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Range of Owners or Reuters
• 4,, .'i' .�1'�1-• - •�iy rw �,i^if t: .! - 4. r•i
i.i' ,�`•�4x41`Y"v.•fl�l'•�ISl:i•1'L!• _�- 1 .1-'i3 •i' •r - ` tY..
• r'�3 '.r.^• '•'r:' • �4F •� nl 1 S •r1'-4• RP
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.. _ s•i• `'�'-�•4' ,1- -'r:. .Y•'' _ .s rr Er,'.•'i.ii='t 1_•.I -'r;- ,s •.s ..
i ,
r= r. !
pp 'i` -r
} 80%of AMFZ**
At or below 80%of AWI
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i' C;-,� t»_' .'=_.,,t• '�`• (.i
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-•Tts-'.:L:?•_:,' ° :•I..- .s •;,• 4}. l.1f+:t•:•'~ 'rt riY n;a.r.li w,.L }lri.,.ati:.. � .s •, 4:r -i.�':i'+.
.•.i: �.S-r'i• �.4_ ,c •r.,r .n='�.;nt (' •,;-' -;•.�•r�•c';il:-'�r•'�`,{,,',.-- ',� ! •f t•� t.+ sr.. :'.r,:t'-• `K
**AWf: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 AWL Check the box if you are requesting a waiver of this
requirement. ,1:1
14, For a commercial industrial or community facilities ro`ect, indicate square footage of non-
residential space.
�... ._
1' - i• 7� �� �
' - ' ii•� - ib f:' _ t .S t,.• Z�S'r �r�,q'.R• .•:
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'�'r�i: ',Y'-` �, ,7: '� '1 F'�: •L'Vx3•./�'� .i?� '-ls`f� .t-n1'•�'•�.'-'�. z•..•3•~--' F:�.�''_ .k�-. ,l� s: ar-_ ��,�Jl�.� ;�'l�' ,[r+,T•'�'•: � 4- •L'�-S".
riV) . IT.. ,s+•�;...',, -•;c L. w iZ•.:
'�„f;tin',._ i;,�� �..t••!�.'-'r �S•-by �:; .,4':!a'�[r' •'? '1 r-. „;,ti=,[ -:
_ ��•y�.y �. `y� �y rti-.-f:s• ir•. n a � '.' t ��� �� � is r. -.yy.ti
`•��1�lAJlJ Ia�i.,�e..y ��:�'�.-:f��_;ti�•r:t. tF} rr 1: • 1r4L�-'���' �:: ���..'•s -},r�`';':.• �.��L'' iice�[. fk� � 1��[r�` _,�ter, 3 ,��.
-__ .ti�� :{';rE:`:J�•-I h'.:1_�+a�;i f�..;,:f]r.r;-.r '•��- :1?]� .t,',::r�Le'- .•Y.tit '-rS:•;.r. _ .Y; }t. ;�:.-+J irj'!�i• .t:••xi�. w.,,.#J;.f i, t.�.
square feet square feet
square f eet
16 `�• � �,�
Revised July 12,2011 3
1
I
FORTWORTH Application No,
k
F
r
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).
Itemized Budget of the Pro'ect
'fable� _
amount :;; : otes: .
IL
Total w t t !•
***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 communi facili or rni�ted-use roiect, how many employees will the
project generate? ` -�-
17, For a mixed-use P ro'ect,please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a fixed Use Project
Te.• :' F i i:••': ' Ida rat a �. _ ,R0rce�nt ge. ,l :
Residential
Off-tee
Eating
Entertainment
Retail sales
Service
T4 al
HIM INCENTIVES - what incentives are you applying for?
Municipal Pro er Tax Abatements
Must p ovide Final flat Cabinet and Slide for Tax,Abatement Cabinet Slide
5 years ❑More than 5 years
EIResident'lal owner occupied DResidential Rental Property [:]Apartments(5 plus units) Sommercia.l
Developyhent 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)
Zoning application fee ❑ Board of Adjustment application fee
Demolition fee ❑ Structure moving fee
Community Facilities Agreement(CFA)application fee
Street and utility casement vacation application fee
impact Fee Waivers -The maximum water/wastewater impact fee waiver amount for a commercial, industrial,mixed-
use,or community facility development project is equivalent to the water/wastewater impact fee of two 6-inch maters
Water Meter Size o.of meters - ---- ❑Transportation
Release of Ott Liens
[� weed liens ❑Paving liens ❑Board up/open structure liens El Demolition liens
Revised July 12,20l 1 4
FoRTWORTH Application No.
III. A CKNOWLED GMEN`S
I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby
acknowledge that I have received a copy of NEZ Basic Incentives,which governs the granting of tax abatements,fee
waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or
MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the
discretion of the City,
I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of
the project. I understand that I am responsible in obtaining required permits and inspections from the City and in
ensuring the project is located in the correct zoning district,, _
I Understand that my application will not be processed if it is incomplete. I agree to provide any additional
information for determining eligibility as requested by the City.
10) ��I
(PRINTED OR TYPED MANE) (AUTHORIZED SIGNA'I` (DATIE)
:•�.��}E .7S•F�.r..�� F•%-i y.•r.�..�._�t,r•�:•,f��� .k.:r.'ti'.•jz:T r ��r r r`::
_ :ice. L-~•.++•
1 +r-
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=.R NI• ••r.• .• :Y.
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e y .y - i. .✓.1 .
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roe o
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`'y.. .r., .�..>����`•. � -� •��•.-.��itil '� r ��: t..T t• �.4 �l..4. :5�.- .n
-._.� �yi.1�..1.+..��~••x F.�•,�r�.'--.�.y. 'fit r.Y"•Y-S t_.,1 \� - �� i�r ��,��J .�'-i-. •-.. ���-r ��. t. �I ��•. �_t.F•'" �- +'r•.
Electronic version of this form is available on our website. For more information on the NEZ Program,please visit
our web site at www.fortworthgov.org/planninganddevelopment
Fo Office so OnI
r+ F
Application No, � In which NEB? Council District
Application Completed Date(Received Date): - onfarm with Zoning? Yes ONo
f
Type? ❑SF ❑Multifamily Commercial ❑Industrial ❑C4mm rnity facilities [� ixed�-Use
Construction completion date? Before NEZ❑After NEZ Ownership/Site Control ❑Yes❑No
TAD Account No. 01(05 M:A Consistent with the NEZ plan? ID Yes []No
Meet affordability test? Yes [:]No -- Minimum Capital Investment? Yes ❑No 1
Rehab at or higher than 30%? Yes [:]No Meet mixed-use definition? Yes El No
Tax eurrent on this property? Yes ❑No Tax current on other properties? Yes ❑No
I
City l i ens on this property? City liens on other properties?
■ weed dens El Yes No • weed liens Yes No
a Board-up/open structure liens El Yes No • Board-up/open structure liens ❑Yes No
* Demolition liens El Yes No a Demolition liens ❑Yes No
a Paving liens ❑Yes No + Pawing liens []Yes No
* Order of d4olition EI Yes * Order of demolition ❑Yes a
Certified? `es EJ No Certified by Date certification issued? Y -�
if not certifi ,reason
Referred to: DEconomic Development []Housing DDevelopment [:]Water []Code [ITPW
Revised July 12'2011 5
Exhibit 3
Pro'ect Des eri tion
Rehabilitation of a 5200 square foot Commercial building. Consisting of the following:
• Updating and installing new plumbing and electrical
• Remodeling interior with multiple exam and treatment rooms, additional restrooms,reception
and waiting area.
• Replacing Flooring
• Elevation and Stucco work to Exterior
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
FORTWORTII
CITY
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COUNCIL C T I O : Approved on 4/8/2014
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DATE: 4/8/2014 REFERENCE C-26759 LOG NAME: 17NEZ56551 ELArNC:,ASTE .
NO.:
® NON- PUBLIC No
CODE: ` CONSENT HEARING:
SUBJECT: ,Authorize Execution of a Five-Year Tax Abatement Agreement with MSRS Lancaster LP,
to Redevelop an Existing Building Into a Medical, Dental and chiropractic Center on
Property Located at 5651 East Lancaster Avenue in the Historic Handley Neighborhood
Empowerment Zone (COUNCIL DISTRICT 5
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CO ►TION:
It is recommended that the City Council authorize the execution of a Five--Year Tax Abatement
Agreement with MSRS Lancaster LP, to redevelop an existing building into a medical, dental and
chiropractic center on property located at 5 51 East Lancaster Avenue in the Historic Handley
Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment?one Tax
Abatement Policy and Basic Incentives.:
PISCUSSION:
MSRS Lancaster LP (Property Owner), is the owner of the property described as Tract 1, Lot 1-A,
Brown Harwood ,Subdivision, to the City of Fort''Forth, Tarrant county, Texas, according to the plat
recorded in '"Volume 388-27, Page 63, Creed Records, Tarrant County Texas, 5651 East Lancaster
Avenue, Fort Forth, Texas. The property is located within the Historic Handley Neighborhood
Empowerment Zone NE? .
The Property owner plans to invest an estimated amount of$582,000.00 to redevelop an existing
building into a medical, dental and chiropractic center (Project),. The Housing and Economic
Development Department reviewed the application and certified that the Project met the eligibility
criteria; to receive a Municipal Property Tax Abatement. The NEZ Tax Abatement Policy and Basic
Incentives includes a five-year municipal property tax abatement on the increased value of
improvements to the qualified owner of any new construction or rehabilitation within the NEZ.
Upon execution of the,Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2015 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TACK) in March 2014 for the
property as follows:
Pre-Improvement TACK Value of Improvements $578)816.00
Pre-I m provement Estimated Value of Land $206,828.00
Total Pre-Improvement Estimated Value $7851644.00
The municipal property tax abatement on the improved value of the Project after construction is
estimated in the amount of$4,976.10 per year for a total in the amount of$24,880.50 over the five-
year period
However, this estimate may differ from the actual tax abatement value, which will be calculated based
on the Tarrant Appraisal District appraised value of the property.
The Tax Abatement.Agreement may be assigned to an affiliate of the Property owner without the
consent of the city council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with city council approval and provided that the new owner meets
all of the eligibility criteria as Mated in the NE?Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 5, Mapsco 79G..
i
Page 1 of
ip
FISCAL INFORMATIONXERTIFICATION:
The Financial Management Services Director certifies that this, action will not increase the total
appropriations of City funds.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for Cifty Manager's Office by: Fernando Costa (6122)
Originafing Department Head: Jay Chapa (5804)
Cynthia Garcia (8187)
Additional Inform atolon Contact:., Sarah Odle (7316)
ATTACHMENTS
5651 E Lancaster MAP.pI
5651 E. Lancaster Current Coed.p_
5651 E. Lancaster Elevations-Flolor arid' Site Plan.pdf
Page 2 oft