HomeMy WebLinkAboutContract 45606 CITY SIEC LA!
CONTRAN
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
1700 Lipscomb Street
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the
CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under
the laws of the State of Texas and acting by and through T.M. Higgins, its duly authorized Assistant City
Manager, and Richard Warren Thomas, III ("Owner"), owner of property located at 1700 Lipscomb
Street Block H, Lot 12, Bellevue Hill Addition an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the plat recorded in Volume 106, Page 39, of the Plat Records of Tarrant County,
Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner
hereby agree that the following statements are true and correct and constitute the basis upon which the
City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
Neighborhood Empowerment Zone (NEZ) 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
NE Z,may enter into agreements abating municipal property taxes on property in the zone.
C. On July 3 1, 2001, the City adopted basic incentives for property owners who own property
located in a NEZ, stating that the City elects to be eligible to participate in tax abatement and
including guidelines and criteria governing tax abatement agreements entered into between
the City and various third parties, titled "NEZ Basic Incentives", these were readopted on
May 21,2013 (Resolution No. 4,209).
Coll",
"117 D. The NEZ Incentives contain appropriate guidelines and criteria governing tax abatement
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agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
C1 Code, as amended ("Code").
E, On December 7. 2010, the City Council adopted ordinance No. 19463 ("Ordinance")
establishing"Neighborhood Empowern-lent Reinvestment Zone No. 5R,"City of Fort Worth,
Texas ("Zone").
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NEE Tax Abatement with Richard Warren Thomas
1700 Lipscomb Street M&C C-26746
Page I of 12
F, owner owns certain real property located entirely within the Magnolia Village NEZ and that
is more particularly described in Exhibit "I", attached hereto and hereby made a part of this
Agreement for all purposes (the "Premises").
O. owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1
of this Agreement, on the Premises to be used as a single-family residence that will be
Owner occupied.
H. on June 20, 2013, owner submitted a complete application for NEZ incentives and for tax
abatement to the City concerning the contemplated use of the Premises (the "Application"),
attached hereto as Exhibit"2" and hereby made a part of this Agreement for all purposes.
I. The City Council finds that the contemplated use of the Premises, the Required
Improvements, as defined in Section 1.l, 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 a single-family residence, of at least 2300 square feet in size and built
to the specifications listed in Exhibit "3" (collectively the "Required Improvements"). Tarrant
Appraisal District must appraise the property (improvements and land) within 10% of
$ owner shall provide a survey of the home upon completion of the Required
Improvements. The parties agree that the final survey shall be a part of this Agreement and shall
be labeled Exhibit"4". Minor variations and more substantial variations if approved in writing by
both parties to this Agreement before construction is undertal�en 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"T'.
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1700 Lipscomb Street M&C C-26746
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1.2. Completion Date of Re aired Improvements.
Owner certifies that the Required Improvements will be completed within two years from the
issuance and receipt of the building permit, unless delayed because of force majeure, in which case
the two years shall be extended by the number of days comprising the specific force majeure. For
purposes of this Agreement, force majeure shall mean an event beyond owner's reasonable control
as determined by the City of Foil Worth in its sole discretion., which shall not be unreasonably
withheld, including, without limitation, delays caused by adverse weather, delays in receipt of any
required permits or approvals from any governmental authority, acts of God, or fires. Force majeure
shall not include construction delays caused due to purely financial matters, such as, without
limitation, delays in the obtaining of adequate financing.
1.3. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the Premises
shall be continuously used as the owner's primary residence in accordance with the description of
the Project set forth in the Exhibit "Y'. In addition, owner covenants that throughout the Term,
the Required Improvements shall be operated and maintained for the purposes set forth in this
Agreement and in a manner that is consistent with the general purposes of encouraging
development or redevelopment of the ,Zone.
2. ABATEMENT AMOUNTS TERMS AND CONDITIONS,
Subject to and in accordance with this Agreement, the City hereby grants to owner a real property
tax abatement of City of Fort Worth imposed taxes on the Premises for the Required Improvements, as
specifically provided in this Section 2 ("Abatement"). Abatement does not include 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 due to the Required Improvements, over its value on January 1,
2014, the year in which both parties executed this Agreement.
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, Owner shall not be eligible to receive
any Abatement under this Agreement.
2.2 Increase in Value.
The Abatement shall be 100% of the increase in value from the construction of the
Required Improvements and shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements. The Abatement shall not apply to taxes on the
land, nor shall the abatement apply to mineral interests.
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2.3. Term of Abatement.
The term of the Abatement ("Term") shall begin on January 1 of the year following the
calendar year in which the Required Improvement is completed and a final inspection is approved
("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31
immediately preceding the fifth (Sth) anniversary of the Beginning Date.
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. Abatement Application Fee.
The City acknowledges receipt from owner of the required Application fee of $100.00.
The application fee shall not be credited or refunded to owner or its assigns for any reason.
3. RECORDS,AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term, at any time
during normal office hours throughout the Term and the year following the Term and following
reasonable notice to owner, the City shall have and owner shall provide access to the Premises in
order for the City to inspect the Premises and evaluate the Required Improvements to ensure
compliance with the terms and conditions of this Agreement. owner shall cooperate fully with the
City during any such inspection and/or evaluation.
3.2. Certification.
Owner shall certify annually to the City that it is in compliance with each applicable term of
this Agreement. The City shall have the right to audit at the City's expense the Required
Improvement with respects to the specifications listed in Exhibit "Y'. Owner must provide
documentation that owner is using the Required Improvements as its primary residence
(collectively,the "Records") at any time during the Compliance Auditing Teem in order to determine
compliance with this Agreement. Owner shall make all applicable Records available to the City on
the Premises or at another location in the City following reasonable advance notice by the City and
shall otherwise cooperate fully with the City during any audit.
3.3 Provision of Information.
On or before March 1 following the end of every year during the Compliance Auditing Term
and at any other time 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.
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Failure to provide all information within the control of owner required by this Section
3.3 shall constitute an Event of Default, as defined in Section 4.1.
3.4 Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City shall
mare a decision and rule on the actual annual percentage of Abatement available to Owner for the
following year of the Teem and shall notify Owner of such decision and ruling. The actual
percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's
compliance with the terms and conditions of this Agreement during the previous year of the
Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(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 Required Improvements, 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 anchor contest of any such ad
valorem real property or tangible personal property taxes; (iii) OWNER DOES NOT USE THE
PREMISES AS PRIMARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv)
OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE
OF ORDINANCES OF THE CITY OF FORT WORTH (collectively, each an "Event of
Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the City
shall provide a written notice to Owner that describes the nature of the Event of Default. owner
shall have sixty (60) calendar days from the date of receipt of this written notice to fully cure or
have cured the Event of Default. If Owner reasonably believes that Owner will require additional
time to cure the Event of Default, Owner shall promptly notify the City in writing, in which case
(1) after advising the City Council in an open meeting of owner's efforts and intent to cure, Owner
shall have ninety (90) calendar days from the original date of receipt of the written notice, or (i1) if
Owner reasonably believes that Owner will require more than ninety (90) days to cure the Event of
Default, after advising the City Council in an open meeting of owner's efforts and intent to cure,
such additional time, if any, as may be offered by the City Council in its sole discretion.
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4.3. Termination for Event of Default and Payment of Liquidated Dama es.
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
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 (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 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 Tenn 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 & Li or Stores or Package Stores.
a. owner understands and agrees that the City has the right to terminate this
agreement if the Required Improvements 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 Required Improvements contains or will
contain a liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Except for an assignment to owner's first mortgagee or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to,
the Abatement granted hereunder shall vest only in owner; however if owner sells the Premises and
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1700 Lipscomb Street M&C C-26746
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Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the
Premises and/or Required Improvements without the prior consent of the City Council, which consent shall
not be unreasonably withheld provided that(1)the City Council finds that the proposed assignee is financially
capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser 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.
Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required
Improvements as its primary residence or the homeowner's mortgagee, owner shall have no further
obligations or duties under this Agreement. In. addition, upon assignment to any other entity with the
written consent of City Council, owner shall have no further duty or obligation under this
Agreement.
IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT
OF A SALE OR ASSIGNMENT.
THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE
REQUIRED IMPROVEMENTS AND ExECUTION OF THE ASSIGNMENT OF THIS
AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF
OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC
TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT
MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY.
5. 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: and owner:
City of Fort worth Housing&Economic Development Dept. Richard Warren Thomas
Attn: City Manager's Office Attn: Jay Chapa, Director 2207 Park Hill Dr.
1000 Throckmorton 1000 Throckmorton Fort worth, Texas 76110
Fort worth, Texas 76102 Foil worth, Texas 76102
7. MISCELLANEOUS.
7.1. Bonds
The Required Improvements will not be financed by tax increment bonds. This Agreement
is subject to the rights of holders of outstanding bonds of the City.
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7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the City Planning or Zoning
Commission or any member of the governing body of any taxing units in the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City ordinances or
regulations, and this Agreement, such ordinances or regulations shall control. In the event of any
conflict between the body of this Agreement and Exhibit "2", the body of this Agreement shall
control.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not apply
to the Premises and/or Required Improvements.
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval of Mayor and
Council Communication No. C-25745 on April 1, 2014, which, among other things authorized the
City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long as the
certificate is requested in connection with a bona fide business purpose. The certificate, if requested,
will be addressed to the Owner, and 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.
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7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas and
applicable ordinance,,,,,., 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. Severab"
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the
0 0, 0
validity, legality and enforceability of the remaining provisions shall not in any way be affected or
impaired.
7.10 Headings Nast Controlli
Headings and titles used in this Agreement are for reference purposes only and shall not be
deemed a part of this Agreement.
7,11. Enfiorejy of Agreement.
This Agreement, 'Including any exhibits attached hereto and any documents, incorporated
herein by reference, contains the entire understanding and agreement between the City and Owner,
their assigns and successors in interest, as to the matters contained herein. Any prior or
contemporaneous oral or written agreement is hereby declared null and void to the extent in
conflict with any provision of this Agreement. This Agreement shall not be amended unless
executed in writing by both parties and approved by the City. Council. This Agreement may be
executed in multiple counterparts, each of which shall be considered an original, but all of which
shall constitute one instrument.
CITY OF FORT WORTH,., OWNS
B
Y. yo
Fernando Costa Richard Warren oma.s, Ill, Owner
Assistant City Manager
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By: 0 ;Q
ar Kayser 0
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City Secretary 01>0 0,000P
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OFFICIAL REQ 0.) D
NE Z Tax Abatement with Richard Warren Thomas CA t` SECRETAI, RY
1700 Lipscomb Street M&C C-26746 Fl!"r,41NOoRTNI TIC
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APPROVED AS TO FORM AND LEGALITY.-
By.
Melinda Ramos
Assistant City Attorney
M & C. C-26746
STATE OF TEXAS §
COUNTYOFTARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant
City Manager of the CITY OF FORT WORTH, a municipal corporation, Imown to me to be the person and
officer whose name is subscribed to the foregoing instrument, and aelmowledged to me that the same was
the act of the said CITY OF FORT WORTH, TEYAS, a municipal corporation, that he was duly authorized
to perform the same by appropriate resolution of the City Council of the City ofFort 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.
AND H Ar-
GIVEN UNDER MY AND SEAL OF OFFICE this day of
2014."ko "1011,111
Notary Public in and for ROSELLA BARNES
10
MY COMMISSION EXPIRES
the State of Texas March 31„2017
"of iiW" a
04,00im,II is
Notary's Printed Name
NEZ Tax Abatement with Richard WaiTen Thomas
1700 Lipscomb Street M&C C-26746
Page 1 0 of 12
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Richard Warren Thomas, III
Imown to me to be the person whose name is subscribed to the foregoing instrument, and aclmowledged to
me that she executed the same for the purposes and consideration therein expressed, in the capacity therein
stated.
VEN UNDER MY HAND AND SEAL OF OFFICE this ay of
20
fij_4
Notary Pu- is in and for�
1 1 A
the State of Texas
SARAHj.ODLE
EXPIRE
'PIREE])
OMMISSION S
MY G i5
November 5,20%
Notary's Printed Name
NEB Tax Abatement with Richard Warren Thomas,
1700 Lipscomb Street M C-26746
Page 11 of 12
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description including kind, number and location of the proposed
improvements.
Exhibit 4: Final Survey
............ ...... .... ..... ....... ............ ...................... ....................... ............... ...... ........... ..................... ...... . .... ..... .................... ....... .... ..... ...... ............ ................................. ..... .................. ............... ...
NEZ Tax Abatement with Richard warren Thomas
1700 Lipscomb Street M&C C--26746
Page 12 of 12
Exhibit "1"
Property Description
1700 Lipscomb Street, Block H, Lot 12, Bellevue Hill Addition an Addition to the City
of Fort Worth, Tarrant County, Texas, according to the plat recorded in volume 106,
Page 39, of the Plat Records of Tarrant County, Texas.
Exhibit 2
FoRTWORTH Appbcafion NO.
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE(NEZ)PROGRAM
PROJECT CERTIFICATION APPLICATION
I. APPLICATION CHECK L S'T' - Please submit the foltowing documentation:
❑ A completed application form axtncrs,and agents
❑ A list of all properties owned by the appli nt,owner,developed associ�,principals,P
in the City Fort Worth
Non Refundable Application fee—For all Basic lnecntives applications excluding ung Tax Abatement the
a lication fee is S25.00.For rnul ti f rnily,commercial,industrlal,commercial facilrt�es,and mixed-Use tax
pP
abatement applications;0.5%of the total Capital Investment of the project,with a$200.00 minimum and
not to exceed$2,000.00;For residential tax abatement applications:S 1 00.00 per house.
Proof of ownership,such,as a warranty deed,awidavit of heirship,or a probated will OR evidence of site
❑ P� warranty deed is required for tax abatement application.)
control,such as option to buy�A registered arts ty �
❑ Title abstract of the property(only if apptying for release of City lions)
❑ A reduced I lx 17 floor plan,site plan,and site e[evation with
a written detailed project description that includes a construction time line
❑ A detailed line item budget showing the cost breakdown for the project
❑ Copy of Incorporation Papers noting all principals,partners,and agents if applicable
❑ Reguired-Meet with the Councilrnember and Neighborhood&other Organizations representing the NEZ
as outlined in the Public Notice requirement of the NEB Policy and Guidelines revised April 6,2004 or
followed guidelines ot'NEZ Strategic glen if a Strategic Plan is in place for the speclrie NEZ.
❑ Support letter from Woodhaven Neighborhood Association and Woodhaven Community Development
Corporation(For projects located is Woodhaven NFZ only)
INCOMPLETE APPLICATIONS 'SILL NOT BE PROCESSED FOR CERTIFICATION UNTIL ALL REQUIRED
DOCUMENTS SHOWN IN THE ABOVE CIrECKLIST ARE SUBMIT?' D WITHIN 30 BAYS AFTER THE
APPLICATION IS RECEIVED,
YOU MUST APPLY FOR TAX ABATEMENT BEFORE ANY BUILDING PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IMPROVEMENTS ARE MAIZE TO YOUR PROPERTY. IT TAKES 60 TO 90
BUSMSS DAYS TO COMPLETE THE TASK ABATEMENT AGREEMENT APPROVAL PROCESS AFTER THE
ISSUANCE OF NEZ CERTIFICATION DEPENDING ON THE COMPLEXM OF YOUR. PROJECT. ALL
BUILDING PERMITS MUST BE PULLED WITHIN THE XI MONTH PERIOD THAT CERTIFICATION WAS
APPUMM OR WITHIN THE 12 MONTH PERIOD THAT THE TAX ABATEMENT WAS APPROVVD,OR YOU
NIVILL BE.REQUIRED TO RE-APPLY FOR NEZ INCENTIVES.
11. APPLICANT f AGENT INFORMATION
x
• AkA4� on. r
_ �� Contact Far$
1. APpltt� �
3. Address: VoLrk g df- 7611
.
Street City state Zip
4. Phone no.: 5. Fax No.t +�� — �7
6. Email: It vu - � s �'v`
! �
7, Agent(i f a nY� man
S. Address:
street - pity Mate Zip
9, Phone no.,
Q-,
I I. Email: Mm) AD
RcAsed July 1Z 2011 1
5
5
I
i
i
FoRTWORTH Appicad on Not
t
PROJECT ELIGIBILITY
1, Plexe list, down the addresses and legal descriptions of the project mad other properties your
organization owns in Fort Worth: Attach metes and bounds description if no address or legal
deuription is available. Attach a map showing the location of the project.
Table 1 Pro]perty Owne hip
1 R
Address Zip bode
P`no'ect Location Subdivision Names Lot No. Block No.
[ether properties owned in the City of Fart Worth --continue on a sepskmte sheet and si'ttach tt'neeGessary.
Z. For each property listed in Table 1,please cheek 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 Commissions Order of Demolition where the property was dcmoiished within the last five
gears.
Tablet Property Taxes and City Liens
Property City Liens on Property
Address Taxes Weed Board-up/Open 0maliflon Paving Order of
Due Liens Sturture Uens Liens Liens Demolition
U U D U
EJ- El ' El
....... El El . .......
11 L1 D El
El El
El L1 0
El -0 Li 11
Li 0 L1
El
CPlease attach additional sheets of paper as needod.)
If there are taxes due or lieens against any property in the City of Fort Wortb you nta- not be eligible
for NEZ incentives
Revised July 11,2011
oRT WORT Application N6.
3. Do you own other properties under other uames? ❑Yes EjeNlo
If YM pleme specify
4. Dow the proposed projcci conform with City of Fort worth Zaiaing? 21yes El No
If no,what steps are beingAken to insure compliance?
S. Project ❑ ❑ ❑ El ❑
I)Tf; Sin Ie family Multi-Family Commercial Industrial Community Facilities Mixed-toss
VOWwtrOccvp1td
El Rentxl Propert3' # tLc 670&
!i, Please describe the pro set residential or commercial project:
�i
7. If your project is a comjmerciai,industrial,or m' ed-use project,please describe the types of
businesses that are being proposed.;
8, Is this a new construction or rehab pro,�ect? 6g4ew Construction [J Rehab
9, How muc h is the total development cas of your project? Coo
10.10. Will the eligible rehabilitation work' equal to at let 34111° of the Tarrant Appraisal/District(`AD)
assessed value of the structure during the year rehabilitation occurs? OYes ❑No
*Eligible rehabilitation includes only physical improvements to real property. It does NOT inelude:
Front yard fencing consisting of chairtwlink or solid material construction;personal property such as fumiture,
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 rch.abilitation occum,
11. How much is the total square footage of your project.? square feet
*1f Sapp lying for__tai abatement pie a answer a6est bns.12--=1 .If' 'ot; ki '46put ]Incentives
-. ::.
12.Lor.a single-farnily single-family homeownership, mixed-use, or multi-family-development ro'ec please fill out
the number of residential units based on income muge of owners or renters in the following table,
Table 3 Number of Residential Units and Income Range of owners flr Renters
N mber of LTnN' : .- .: : :Percerttag�e
Income.Ran&e =
>80%of AMFI**
At or below 80%ofAMFI
Total knits ry -.. c�• ,
ir
lk*AWL,Area Median Family Income, Please see attachment for income and housing payment guidelines,
13.For a mu�ily to he qualified for tax abatement, at Ieast 20% of total units shall be
affordable to families at or below 80%of AMFL Check the box if you are requesting a waiver of this
requirement.
14. For it commerclaL industrial or communift facilities Jim`eCt indicate square footage of non-
residential space.
• :481
r --;_ r -�i-.•i r.;r=:!aJ .i.: ,�•f. �•..r'z.•:.`.i — -•1�_ c f r,i- •.r ,r_ •r
Comm �"�. ,s::,. `fnc� - •' .. - +vinu t
Y, -
square feet squaw feet sgnare feet
Revised July 12,2011 3
F
FORT WORT
App icetbnNo,
IS.How much wiH be your Capital Investment***on the project?Please use the fallowing table to provide
the detaaih anti amount of your Capital Investment(Attached additional sheets if necessary), t
Table 4 Itemized.Budget of the Project
items : Amount
0
Total -
***Capita(Investment includes only real property improvements such as now facilities and structures,site improvements,facility
expansion, and facility modernization. Capital Investment DOES NOT include lard acquisition costs andlor any existing
improvements,or personal property(such as machinery,equipments and/or supplies or inventory),
Ih. For a commercial industrial communLq facility or mixed-use prWec how many eraployem will the
project generate'
17. For a mixed-use.,P.ro'eet,please indicate the percentage+if all use in thie pro,eet is the follawing tal le.
Table 5 Percentage of Uses in a fixed-Use Project
Typi.- Square FoiAnge .' 'ercentage
Residential
Office
lEatin
Entertainment
Retail sales
Service
Toud
1H. INCENTrVES = what incentives are you applying for?
Munici at Property Tax Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
�years ❑More than 5 years
E� esidential owner occupied OResidential Rental Property ❑Apartments(5 plus units) Ll Commercial
Development Fee Wa1'yer:5
All building permit related fees(including Plans Review and Inspections)
Plat application fee(including concept plan preliminary plat,final plat,snort form replat)
❑ Zoning application fee [l Board of'Adjustment application fee
L2 Demolition fee El Structure moving fee
�Communl`ty Facilities Agreement(CFA)application fee
Street and utility easement vacation application fee
1myact Fee'waivers -The maximum watLarlwastefater impact fee waiver arnount for a commercial,industrial,Mixed-
use,or communo facility development project is equivalent to the watertwastewater�tpacf fee of two�-inr�h rr�ters
tt
g-'Water (Deter Sue (No.of meters cans o fi
[ � p rti an
Release of City Liens
0 Weed liens [l Paving liens ❑Board up/open structum liens
❑Demolition liens
5
Revised July i 2,2011 4
FoRTWoRTH A Pl3 kation N o.
111, ACKNOWLEDGMENTS
I hereby certify that tho 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,fcc
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 ternnination of incentives at the
discretion of the City.
I understmd that the approval of fee waivers and other incentives shal l not be deemed to be approval of any aspect of
the pFO'ect, I understand that I am responsible in obtaining xrquired permits and inspections from the City and in
ensuring the project is bated in the correct zoning district
X enders-Wd that my application will not be processed if it is incomplete. I a provide any additional
infQnnation for determining eligibility as requested by the City.
�r 0
(FRINTED OR TYPED NAME) (AU QED 5I ATURE) (DATE)
Please mail or fax your application to:
-City of Fort worth Planning and Development Department _
.A600 T'krockrdorton gtrteti Fok Worth,Te 76102
t? .32 2 Fait:(817)392-8116.
Electronic version of this fonn is available on our website. For more information on the?FEZ Program,please visit
our web site at www:Xortworthgov.org/planningaanddevelopment
For Office Us#Cynly
Application No. In which NEZ? f Council-District
.Application Completed Date(Received Date): Conform with Zoning? es ❑Nc
Type?0 SF ❑Multifamily ❑Commercial El Industrial El Corhmunity facilities ❑Mixed-1 se
Construction completion date? El Before NEZ After NEZ Ownership/Site Control [Ke'_
s❑No
TAD Account No. Consistent with the NEZ plan? Yes ❑No =
Fleet-affordability test? Yes ❑No Minimum Capital Investment's Yes ❑No
Rehab at or higher than 30%? Yes ❑No Meet mixed-use definition? Yes ❑No
Tax current on this property? Yes ❑No Tax current on other properties? Ycs El No
City liens on this property? City liens on otber properties?
* 'weed liens ❑Yes No o weed liens ❑Yes No
a Board-uplopean structure liens ❑Yes No * Board-up/apen structure liens ❑Yes Na
■ Demolition liens ❑Yes No a Demolition-liens El Yes No
•paving liens ❑Yes No • Paving,liens ❑'des No
* Ordcr of dcm 'ion ❑ s o • Order of demolition Yes
Certified? Yes El No Certified b .Date certification issued?
If not certified,reason
Referred t .
• [:]Economic Development []Housing []Development ❑water 0Cod e El TPW
Revised July 17,2011 3
Exhibit "Y'
Project Description
Single Family Residence
4 Bedrooms
3 Bathrooms
Dining Room
Living Room
Front Covered wrap Around Porch
2 Second Floor Balcony's
Approximately 2300 square feet
Detached Garage
z
x
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in
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ITY OUNCIL"'_
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COUNCIL ACTION.- roved on 4/11
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DATE: 4/1/20 14 REFERENCE C-26746 LOG N 1 NEZ1 0OLI P COM E
C C, TYPE: NOW, PUBLIC
NO,
CONSENT THIN :
SUBJECT: Authorize Execution of a Five-Fear Tax Abatement Agreement with Richard) Warren
Thomas, III for the construction of a single-Family Dwelling at 1700 Lipscomb street in the
Magnolia Tillage Neighborhood Empowerment Zone (COUNCIL DISTRICT 9
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rCl�r/✓„✓i7f�tG7��/r%/dGi✓%1i7//!✓iu/ir�luki„ i✓.,/�/C1Cuirr✓✓i�u/f�/urn„ fC/�rC/i"u/r�/ %,,r%/lllf/,l
RECOMMENDATION:
It is recommended that the City Council authorize the execution, of a five-year Tax Abatement
Agreement with Richard Warren Thomas,, III for the construction of a single-family dwelling at 17
Lipscomb street in the Magnolia Village Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment,Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Richard Warren Thomas, Ill (Property owner), is the owner of the property described as Block E, Lot
1, Bellevue Mill Addition, an Addition to the City of Fort'Forth, Tarrant County, Texas, according to
the plat recorded inVolume 106, Page 39, of the Plat Records of Tarrant County, Texas, at 17010
Lipscomb street, Fort Worth, Texas. The property is located within the Magnolia Tillage
Neighborhood Empowerment gone (NEZ) and the Fairmount/southside Historic District. on
September g, 2013, the Historic and Cultural Landmarks Commission approved a Certificate of
Appropriateness for the construction of a single-family residential structure and detached garage at
1700 Lipscomb street.
The Property owner plans to invest an estimated amount of$234,0001.00 to construct an
approximately 2,3001 square foot single-family residence (Project). The Project will be used as the
owner's primary residence.
The Housing and Economic Development Department reviewed the application and certified that the
Property owner and Project mat the eligibility criteria to receive a I” E Z"Municipal Property Tax.
Abatement. The NEB: 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 y ppraisal District (TAD) on March 20, 2014, for the
value, as defined b the Tarrant�
property as follows:
Pre-Improlvement TAD Value of Improvements $ o.00
Pre-Improvement Estimated Value of Land 30,000.00
Total Pre-Improvement Estimated Value 309000.00
The municipal property tax on the improved value of'Project after construction is estimated in the
amount of$2,000.70 per year for a total amount of$10,003.50 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.
In the event of a sale of this property, the NEZ Tax Abatement Agreement may be assigned to a new
Page 1 oft
owner's first mortgagee or a new homeowner as their primary residence. All other assignments must
he"'approved by the City Council.
This property is located in COUNCIL DISTRICT 9, Mapsco 76R.
,FISCAL INFORIVIATIONXERTIFICATION.-
The Financial Management Services Director certifies that this action will not increase the total
appropriations, of City funds.
TO Fund/Account/Centers FROM Fund/Accoun,t/Centers,
Submitted for City Manager's Offic Fernando Costa (61 22)
.0rig'Inating Department Head: Cynthia Garcia (81 87)
Jay Chapa (5�804)
Addiftl'onall Information Cqntact: Sarah Odle (7316)
ATTACHMENTS
1'700 Ljpscornb Street Map�.pdf
Elevation and Floor Plans,.pdf
Page 2 of'2