HomeMy WebLinkAboutContract 45715 CITY SECRETAW
CONTRACT NO.
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
1500, 1502 c& 1504 E.Lancaster
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 City
Manager, and Paulos Properties, LLC, owner of property located at 1500, 1502 and 1504 E.
Lancaster, the N Pt; Lot 1, S Pt; Lot 1 and Lot 2, Block 93, Texas & Pacific Railway Addition, an
Addition to the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume
63, Page 107,Plat Records,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 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
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a Neighborhood Empowerment Zone, 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 "Neighborhood
Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"), these were readopted on May
21,2013 (Resolution No. 4209).
D. The NEZ Incentives contains 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"),
E. On November 6, 2012,the City Council adopted Ordinance No. 20487 ("Ordinance")
re-establishing the Evans & Rosedale area as "Neighborhood Empowerment Reinvestment Zone No.
4," City of Fort Worth, Texas ("Zone") and adopted Resolution No 4143 re-estal,ishi ig
"Designation of the Evans and Rosedale Area as a Neighborhood Empower ent Gone"Stle`
RE
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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 November 14, 2013 Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "3" and hereby made a part
of this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defuied 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.
I.I. 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 4700 square foot
building; and (ii) having a construction cost upon completion of$517,343.00 including site
development costs but such minimum construction costs shall be reduced by any constriction
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 $517,343.00. 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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1.2. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by
March 25, 2016 (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 Seventeen Thousand, Three Hundred Forty Three Dollars
($517,343.00) 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 an Office and Treatment Center for
Behavioral Health and in accordance with the description of the Project set forth in the
Exhibit "4". 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 TF.RIVIS 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 March 25, 2014, and this amount is $27,402.00, 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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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 March 25, 2014, including the Required Improvements, up to a maximum of
$776,014.50. In other words, by way of example only, if the increase in value of the Premises
over its value on March 25, 2014, including the Required Improvements, in a given year is
$780,000.00, 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$776,014.50.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement (the "Term") shall begin on January 1 of the year
following the calendar year in which a final certificate of occupancy is issued for the
Required Improvements ("Beginning Date") and, unless sooner terminated as herein
provided, shall end on December 31 immediately preceding the fifth (5th)
anniversary of the Beginning Date.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term 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
City to inspect the Premises and evaluate the Required Improvements to ensure compliance
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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 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 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 within the control of Owner required by this Section 3.3
shall constitute an Event of Default, as defined in Section. 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and
ruling. The actual percentage of the Abatement granted for a given year of the Term is
therefore based upon Owner's compliance with the terms and conditions of this Agreement
during the previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem
real property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises, become delinquent and
Owner does not timely and properly follow the legal procedures for protest and/or contest of
any such ad valorem real property or tangible personal property taxes or(iii) OWNER DOES
NOT COMPLY WITII CHAPTER7 AND APPENDIX B OF THE CODE OF
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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 (18 0) 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 irmnediately. Owner acknowledges and agrees that an uncured Event of
Default will (i) harm the City's economic development and redevelopment efforts on the
Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional
administrative oversight and involvement by the City; and (iii) otherwise harm the City, and
Owner agrees that the amounts of actual damages there from are speculative in nature and will
be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any
Event of Default, Owner shall not be eligible for the Abatement for the remaining Term and
Owner shall pay the City, as liquidated damages, all taxes that were abated in accordance with
this Agreement for each year when an Event of Default existed and which otherwise would
have been paid to the City in the absence of this Agreement. The City and Owner agree that
this amount is a reasonable approximation of actual damages that the City will incur as a result
of an uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by the
City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal
district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing
and paid to the City within sixty (60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within
sixty(60)days following the effective date of termination of this Agreement, Owner shall also
be liable for all penalties and interest on any outstanding amount at the statutory rate for
delinquent taxes, as determined by the Code at the time of the payment of such penalties and
interest.
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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 parry 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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City: Owner:
City of Fort Worth Paulos Properties, LLC
Attn: City Manager Attn: Flora Brewer
1000 Throckmorton 6708 Ashbrook Dr.
Fort Worth, TX 76102 Fort Worth, Texas 76132
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 March 25, 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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7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-26717 on March 25, 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, 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.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas
and applicable ordinances, rules, regulations, or policies of the City. Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
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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:
By:
By:
Fernando Costa Paulos Properties,LLC
Assistant City Manager ent,Flora Brewer
FOPp
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o�
'7� ,,..,-_,,,
ATT 1
By�ary
Kayser 4t XAS
City Secretary
APPROVED AS TO FORM AND LEGALITY:
4
e Ramos
Sr. Assistant City Attorney
M & C. C-26717
OFFICIAL RECORD
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2014.
..
Notary Public in and for e EMOA ."O,NGS
the State of Texas Ini n x
s Ia q
10, 20
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Flora Brewer, President
of Paulos Properties, 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 Paulos Properties LLC.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this ay of
2014.
No Pub rc in and for
The State of Texas
S A
MY COMMISSION EXPIRES
Noe 1 5,2015
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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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Exhibit"1"
Property Description
1500, 1502 and 1504 E. Lancaster, the N Pt; Lot 1, S Pt; Lot 1 and Lot 2, Block 93, Texas
&Pacific Railway Addition, an Addition to the City of Fort Worth,Tarrant County, Texas,
according to the Plat recorded in Volume 63, Page 107, Plat Records, Tarrant County,
Texas.
Exhibit 2
FoRTWORTH Application No. W7A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE(NEZ)PROGRAM
PROJECT CERTIFICATION APPLICATION
I. APPLICATION CHECK LIST - Please submit the following documentation:
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 project,with a$200.00 minimum and
not to exceed$2,000.00;For residential tax abatement applications:$100.00 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(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 11x17 floor plan,sit. a plan,and site elevation 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
rvf
LInL $gQyjred-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 SHOWN IN THE ABOVE CHECKLIST ARE SUBMITTED WITHIN 30 DAYS 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 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,OR YOU
WILL BE REQUIRED TO RE-APPLY FOR NEZ INCENTIVES.
IL APPLICANT/AGENT INFORMATION
1. Applicant: Paulos Properties,LLC 2. Contact Person: Flora Brewer
3. Address: 6708 Ashbrook Dr. Fort Worth, TX 76132-1140
Street City State Zip
4. Phone no.: 817-346-9112 5. Fax No.: 817-346-1932
6. Email: flora @lancasterlofts.com
7. Agent(if any) Neale Mansfield,Property Management
8. Address: 1316 E.Lancaster Ave,Ste B Fort Worth, TX 76132-1140
Street City State Zip
9. Phone no.: 817-744-8211 10. Fax No.: 817-410-5050
11. Email: neale@jccrewinc com
Revised July 22,2010 1
FORT W09D Application No.
PItOJECTELIGIBILM ect and other properties Your
1. Please list down the addresses and legal descriptions of the project
organization owns in Fort Wordy- Attach metes anted>be th spro description if no address or legal
org showing the lace
description is available. Attach a map
Table 1 Pro a Ownershi a escn hon
Zip Code Lot No. Block No.
Address
Subdivision Name
o'ect Location ee Attached
1502/1504 E.Lancaster 6102
e u
Ci of Fort Worth -continue on a separate sheet and attach if necessary-
Other properties owned in the �
ee Attached
2. For each property listed in Table 1,please check the boxes below to indicate if:
- there are taxes past due;or
• there are City liens;or ents principals) have been subject to a Building
- You (meaning the applicant, developer, associates, ag ' was demolished within the last five
Standards Commission's Order of Demolition where the Property
years.
Table 2 PropeM Taxes and Ci Liens City Liens on Property
Property Demolition Paving Order of
Address Taxes Weed Board-up/Open Liens Demolition
Due Liens
Stucture Liens Liens
NONE
(Please attach additional sheets of paper as needed•)
be eligib
If there are taxes due or liens against any property in the City of Fort Worth You ma`
for NEZ incentives
2
Revised July 22,2010
FORT WORT Application No.
3. Do you own other properties under other names? Yes[]No
If Yes,please specify Urban Race Street LP (see attached)
4. Does the proposed project conform with City of Fort Worth Zoning? XYes ❑No
If no, what steps are being taken to insure compliance?
S. Project ❑ ❑ ❑ ❑ ❑
Type: Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
❑OwwrOcmpW
/F-"— 1'roperty
6. Please describ//e the proposed residential or commercial project:
Gut and rehab 15 story bldg-for rental as office and behavioral health treatment center
7. If your project is a commercial,industrial,or mixed-use project,please describe the types of
businesses that are being proposed: Outpatient addiction services by MI AIR of Tarrant
County/CATS
8. Is this a new construction or rehab project? ❑New Construction
,oRehab
9. How much is the total development cost of your project? $400.000
10. Will the eligible rehabilitation work* equal to at least 30% of the Tarrant Appraisal District(TAD)
assessed value of the structure during the year rehabilitation occurs? A 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
TAD appraised value of the structure during the year rehabilitation occurs.
11. How much is the total square footage of your project? 4700 square feet
If applying k=tttz a bstempat please a=vvtrgaesttent►l_' I&Ifnut skip to pilrt IiII 146ntivow..,
12.For a single-family homeownershin, mixed-use. or multi-family development nrolec 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 Renters
Number of Units p
ercentagw
>80%of AMR**
At or below 800/6 of AMFI
TotdUnits..
**AMFI:Area Median Family Income. Please see attachment for income and housing payment guidelines.
13. For a multifamily nroigcto be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80% of AMFI.Check the box if you are requesting a waiver of this
requirement. ❑
14. For a commercial, industrial or communift facilities oroiect: indicate square footage of non-
residential space.
WRIM
Indnstna „<
_ a
4900 square feet square feet square feet
Revised July 22,2010 3
FORT WORT Application No.
15. now 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 Itemized Bud et of the Pro ect
„'. tructural En g assessment included
rchitecture,Eng,and Design 30,000
30,000 bestos abatement included
Demo and Environmental 60,000 New bitumen roof with insulation
Roof HVAC,plumbing,parking lot,16 offices,2 grp rms
utilities and finish out 280,000
Tolll ` ' ents,facility
" �m rovements such as new facilities and structures,acquisition costs and/orlany existing
—Capital Investment includes only real prop itY P
expansion, and facility modernization. Capital investment egui DOES nNOT o upplies oland en ory)•
improvements,or personal property(such as machinery,equipment,
�nnnV CO1nMLnlitV faCllitV
how many employees win the
1
16. FQ table.
project generate. project in the following
17. please indicate the percentage of an uses ur e p j
Table 5 Percentage of Uses in a Mixed -Use Project Or
y x
krf.
Tye`
Residential
Office
Eatin
Entertainment
Retail sales
Service
., E<
UL INCENTIVES - What incentives are you applying for?
•n- .�„Tax Abatement Slide__
Must p
rovidexinal Plat Cabinet and Slide for Tax Abatement Cabinet _______
_
ore than 5 years
5 years []Apartments(5 Plus units) Commercial
❑Residential owner occupied ❑Residential Rental Property ❑AP
Ree Waivers
ga .........t Including Plans Review and Inspections)
All building permit related fees
0 Plat application fee(including
concept plan,preliminary plat,final plat,short form replat)
Zoning application fee ❑ Board of Adjustment application fee
❑
Demolition fee F1 Structure moving fee
®
Community Facilities Agreement(CFA)application fee
❑ Street and utility easement vacation application fee
industrial,mixed-
um
fee
w o i metA s
lY4d4 =The maximn va Ant o mO
rt nrniec
use or mmmunity aility develnnma
F1 Transportation
(No.of meters
Water (M eter Size
®elogcn..f f ity i.iens ❑Demolition lien:
Weed liens
C]Paving liens ❑Board up/open structure liens
4
Revised July 22,2010
FORT WORT Application No.
III. ACKNOWLEDGMENTS
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.
719-0r-c- IOZSIZI-3
(PRINTED OR TYPED NAME) (AUTHORIZED SIGNATURE) (DATE)
Please mad or fax your application to
City of Fort Worth PhnWft and Development Department
I000 Throckmoilan std Fort Worth;Terns 76111 :
Td-.'(8M392-222X Fin(81 392-81IC".
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
For Office s nl
Application No. which NEZ? District
Application Completed Date(Received Date): Conform with Zoning? es ❑No
Type? ❑SF ❑Multifamily Commercial ❑jnd�Z ❑Community facilities ❑Mix Use
Construction completion date?
"�� Before NEZ After Ownershi /Site Control Yes No
TAD Account No.(�I1�31 A 1 A Consistent with the NEZ plan? res n No
Meet affordability test? FJ es [I No Minimum Capital Investment? I❑No
Rehab at or higher than 30%?
Vyy s ❑No Meetmixed-use definition? Q/ )❑No
Tax current on this property? s ❑No Tax current on other properties? [� ❑No
City liens on this property? City liens on other properties? �,�
• Weed liens El Yes [� o • Weed liens ❑ S(0"N-✓JNo
• Board-up/open structure liens ❑Yes o • Board-up/open structure liens ❑ ) o
• Demolition liens ❑Yes o • Demolition liens ❑ )(fio
• Paving liens ❑Yes • Paving liens ❑ S No
• Order of Ves on ❑Yes - Order of demolition ❑
Certified? ❑No Certified by Date certification issued?
If not certified,reason
Referred to: ❑Economic Development ❑Ho sing ❑Development ❑Water ❑Code ❑TPW
Revised July 22,2010 5
Exhibit 3
Project Description
Rehabilitation of a 4700 square foot commercial building. Consisting of the following:
• Interior Demolition
• Updating and installing new plumbing and electrical
• Remodeling interior with multiple offices and group meeting rooms,restrooms,break room,
storage, and reception and waiting area.
• New Flooring and Carpeting
• Stucco work to Exterior or Brick Repair and Replacement
• Roofing
• Reworking parking lot
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
e�yry� e
FO 1 t"�ORT11
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COUNCIL ACTION: Approved on 3125/2014
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CONTINUED FROM A PREVIOUS WEEK
DATE: 3/1812014 REFERENCE C-26717 LOG NAME: 17NEZ1500ELANCASTER
NO.:
NOW PUBLIC NO
CODE: C TYPE: CONSENT HEARING:
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Paulos Properties
LLC, to Redevelop an Existing Building into an Office and Treatment Center for
Behavioral Health on Property Located at 1500, 1502 and 1504 E. Lancaster Avenue in
the Evans and Rosedale Neighborhood Empowerment Zone (COUNCIL DISTRICT 8)
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RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement
Agreement with Paulos Properties LLC, to Redevelop an Existing Building into an Office and
Treatment Center for Behavioral Health on property located at 1500, 1502 and 1504 E. Lancaster
Avenue in the Evans and Rosedale Neighborhood Empowerment Zone, in accordance with the
Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
Paulos Properties LLC (Property Owner), is the owner of the properties described as the N Pt; Lot 1,
S Pt; Lot 1 and Lot 2, Block 93, Texas & Pacific Railway Addition, an Addition to the City of Fort
Worth, Tarrant County, Texas, according to the plat recorded in Volume 63, Page 107, Plat Records,
Tarrant County Texas, 1500, 1502 and 1504 E. Lancaster Avenue, Fort Worth, Texas. The property
is located within the Evans and Rosedale Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$517,343.00 to redevelop an existing
building into an office and treatment center for behavioral health (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 (TAD) in April 2013 for the
property as follows:
Pre-Improvement TAD Value of Improvements $ 27,402.00
Pre-Improvement Estimated Value of Land $40,623.00
Total Pre-Improvement Estimated Value $ 68,025.00
The Municipal Property Tax Abatement on the improved value of the Project after construction is
estimated in the amount of$4,423.28 per year for a total in the amount of$22,116.41 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 Tax Abatement Agreement may be assigned to an affiliate
without the consent of the City Council or to a new owner with City Council approval, only if the new
owner meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic
Incentives.
Page 1 of
` ~
This property is located in COUNCIL DISTRICT 8, KAmpocn77C.
FISCAL INFORIVIATIONICIERTIFICAT
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
TO Fund/Account/Centers FROM FundiAccount/Centers
Submitted for Cily Manager's office Fernando Costa (O122)
Jay Chmpa (58O4)
Originating Department Head: Cynthia Garcia (8187)
Additional Information Contact: Sarah Odle (7318)
ATTACHMENTS
1500-1502. E Lancaster Elevations.K)df
1500-1502..E Lancaster Floor Plans.pdf
1500-1504 E Lancaster Current Condition.Ddf
1500-1504 Site Plan-2.pdf
Maio 1500-1504 E. Langq��
Page 2 of