HomeMy WebLinkAboutContract 46679 CITY SECRETAW
CONTRACT NO.
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
EMPOWERMENT ZONE
923 E.Allen Avenue
This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between
the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized
under the laws of the State of Texas and acting by and through David Cooke, its duly authorized City
Manager, and Tarrant County Housing Partnership, owner of property located 923 E. Allen Avenue,
Block 22, Lot 574, Hyde Park Addition, an Addition to the City of Fort Worth, Tarrant County,
Texas, according to the Deed recorded in Volume 10068, Page 279, of the Deed 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 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 6,
2014 (Resolution No. 4319).
rr7
rn D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
C3 abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
M Code, as amended (the"Code").
E. On November 6, 2012, the Fort Worth City Council adopted Ordinance No. 20487
C= (the "Ordinance") re-establishing "Neighborhood Empowerment Reinvestment Zone No.4" City of
CA Fort Worth, Texas (the "Zone") and adopted Resolution No. 4143 re-establishing"Designation of the
Evans and Rosedale Area as a Neighborhood Empowerment Zone" (the "NEZ").
OFFICIAL RECORD
Page 1 of 11 CITY SECRETARY
NEZ Tax Abatement with Tarrant County Housing Partnership FT.WORTH,TX
Approved by M&C C-27086, November 18, 2014
e
F. Owner owns certain real property located entirely within the Zone and that is more
particularly described in Exhibit"I", attached hereto and hereby made a part of this Agreement for all
purposes (the "Premises").
G. Owner or its assigns plan to construct the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises(the"Project").
H. On October 20, 2014, Owner submitted an application for tax abatement to the City
concerning the Premises (the "Application"), attached hereto as Exhibit "2" and hereby made a part
of this Agreement for all purposes.
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 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 a single-family residence, of approximately 2,566 total 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) for at least $61,000.00. 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 undertaken 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 "3".
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NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086, November 18, 2014
1.2. Completion Date of Required Improvements.
Owner certifies that the Required Improvements will be completed within two years
from the date of Council approval. The abatement will automatically terminate two years after
Council approval if a building permit has not been pulled and a foundation has not been
poured, 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 Fort 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 sold so that it is continuously used as the primary residence of the Home
Buyer in accordance with the NEZ Incentives. In addition, Owner covenants that
throughout the Term, the Required Improvements shall be maintained for the purposes set
forth in this Agreement.
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 November 18, 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 l.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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NEZ Tax Abatement with Tarrant County Housing Partnership
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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 sold to a Home Buyer who will use the Required
Improvements as its primary residence and, unless sooner terminated as herein provided, shall
end on December 31 immediately preceding the fifth (5th)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 "3". 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 Term 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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NEZ Tax Abatement with Tarrant County Housing Partnership
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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 l 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 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
and/or 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 (i) after advising the City Council in an open meeting of Owner's
efforts and intent to cure, Owner shall have ninety (90) calendar days from the original date of
receipt of the written notice, or(ii) if Owner reasonably believes that Owner will require more
than ninety (90) days to cure the Event of Default, after advising the City Council in an open
meeting of Owner's efforts and intent to cure, such additional time, if any, as may be offered
by the City Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated Damages.
If an Event of Default which is defined in Section 4.1 has not been cured within the
time frame specifically allowed under Section 4.2, the City shall have the right to terminate
this Agreement immediately. Owner acknowledges and agrees that an uncured Event of
Default will (i) harm the City's economic development and redevelopment efforts on the
Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional
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NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086, November 18, 2014
administrative oversight and involvement by the City; and (iii) otherwise harm the City, and
Owner agrees that the amounts of actual damages therefrom 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
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 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 PRENHSES.
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 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 (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 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
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NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086,November 18, 2014
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.
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City: and Owner:
City of Fort Worth Housing& Economic Tarrant County Housing Partnership
Attn: City Manager's Office Development Dept. Attn: Donna VanNess
1000 Throckmorton Attn: Jay Chapa 3204 Collinsworth St.
Fort Worth, Texas 76102 1000 Throckmorton St. Fort Worth, Texas 76107
Fort Worth, Texas 76102
7. MIS CELL A.TEOUS.
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.
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.
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NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086, November 18, 2014
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 "Y', 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-27086 on November 18, 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.
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.
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NEZ Tax Abatement with Tarrant County Housing Partnership
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7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10 Headings Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
the City and Owner, their assigns and successors in interest, as to the matters contained
herein. Any prior or contemporaneous oral or written agreement is hereby declared null and
void to the extent in conflict with any provision of this Agreement. This Agreement shall
not be amended unless executed in writing by both parties and approved by the City
Council. This Agreement may be executed in multiple counterparts, each of which shall be
considered an original, but all of which shall constitute one instrument.
CITY OF FORT WORTH: TARRANT COUNTY HOUSING
PARTNERS IP
By: /�/Ly �h_- By:
Fernando Costa Don ss
Assistant City Manager sident, Tarrant my Housing Partnership
ATTEST- ®R)°
0070004-4.0
By: —I
O
a Kayser �. V g o
City Secretary ]�$�o0000
0
X
APPROVED AS TO FORM AND LEGALITY:
By. ',U
M Melinda Ramos
Sr. Assistant City Attorney OFFICIAL RECORD
CITY SECRETARY
M & C: C-27086 FT.WORTH,TX
Page 9 of 11
NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086,November 18, 2014
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 /5%lty of
12015.
Notary PubAc in d for
the State.e-f- exas
,;.a...;a• TRIKINYA L. JOHNSON
r� w =2 �= Notary Public,State of Texas
Notary's Printed ame -, :y- My Commission Expires
April 17, 2018
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Donna VanNess,
President of Tarrant County Housing Partnership, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me that she executed the same for the
purposes and consideration therein expressed, in the capacity therein stated.
i
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2015.
Notary Public in and f
the State o 1 exas `
Notary's Printed me
OFFICIAL RECORD
CITY SECRETARY
FT.WORTH, TX
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NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086, November 18, 2014
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Required Improvements description
Exhibit 4: Final Survey
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NEZ Tax Abatement with Tarrant County Housing Partnership
Approved by M&C C-27086,November 18, 2014
Exhibit 1
Property Legal Description
923 E. Allen Avenue, Block 22, Lot 574, Hyde Park Addition, an Addition to the City of Fort
Worth, Tarrant County, Texas, according to the Deed recorded in Volume 10068, Page 279, of the
Deed Records of Tarrant County, Texas.
Exhibit 2
FORT WORTIK Application No.
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 Citv Fort Worth
❑ Non Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement the
application fee is$25.00.For multifamily,commercial,industrial,community 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 52,000.00; 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 1 1x17 floor plan,site 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
❑ 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 February 5, 2014 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 OF THE DATE OF
APPLICATION.
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.
i
II. APPLICANT/AGENT INFORMATION
1. Applicant: 9,—Sh9 2. Contact Person: 6140gL
3. Address: ,3a o 6D I1Ld 6�C�L7Y-I-f/I (Alpr�y-h 'X
7
Street City State Zip
4. Phone no.: 1-7.Lta 4. 5pd,f 5. Fax No.: 17, q o�Y. 7 9
6. Email: ►
7. Agent(if any)
8. Address:
Street City State Zip
9. Phone no.: 10. Fax No.:
11. Email:
Revised July 23,2014 1
a �
FORT WORTS Application No.
PROJECT ELIGIBILITY
1. Please list the addresses and legal descriptions of the project and other properties your organization
owns in Fort Worth. Attach metes and bounds description if no address or legal description is
available. Attach a map showing the location of the project.
Table 1 Property Ownershi
Address Zip Code
Project Location Subdivision Name Lot No. Block No.
Other properties owned in the City of Fort Worth -continue on a separate sheet and attach if necessary.
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
• 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 Property 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
i
❑ ❑ ❑
❑ ❑ Li
❑ ❑ ❑ ❑ ❑
❑ ❑ ❑
1:1 1 IT-I Li ❑
(Please attach additional sheets or paper as needed.)
If there are taxes due or liens against any property in the City of Fort Worth you may not be eligible
for NEZ incentives
Revised July 23,2014 2
FORT WORTH Application No.
i
3. Do you own other properties under other names? ❑ Yes Q No li
If Yes, please specify
4. Does the proposed project conform with City of Fort Worth Zoning? ET Yes ❑No
If no, what steps are being taken to insure compliance? ;
5. Project ❑ ❑ ❑ ❑ ❑
Type: Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use
Owner Occupied
❑ Rental Properly
1 y
6. Pl se describe the proposed resid ial or commercial projecti +e Q.1/ J
7. If your pr oje is a comm cial, industrial,or mixed-use oject,please descri a the types of
businesses that are being proposed: r1, Gi
L
8. Is this a new construction or rehab project? [ New Construction ❑Rehab
9. How much is the total development cost of your project? /, o� t2, 0
10. Will the eligible rehabilitation work* be equal to at least 30% of the Tarrant Appraisal District
(TAD)assessed value 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
TAD appraised value of the structure during the year rehabilitation occurs.
11. How much is the total square footage of your project? �,rQ , 1 �"'3 square feet P� J�
* If applying for a tax abatement please answer questions 12—16. If not skip to part III Incentives
12.For a single-family homeownership, mixed-use, or multi-family development project, please fill out
the number of residential units based on income range of owners or renters in the following table.
f
Table 3 Number of Residential Units and Income Range of Owners or Renters
Number of Units Percentage
Income Range
>80%of AMFI**
At or below 80%of AMFI b '00
Total Units Z60
**AMFI:Area Median Family income. Please see attachment for income and housing payment guidelines.
13. For a multifamily�roiect to 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 community facilities aroiect, indicate square footage of non-
residential space.
Commercial Industrial Community Facilities
square feet square feet square feet
Revised July 23,2014 3
i
FORT WORT
Application No.
15. How much will be your Capital Investment*** on the project? Please use the following table to provide
the details and amount of your Capital Investment(Attached additional sheets if necessary).
Table 4 Itemized Budget of the Project
Items Amount Notes
Total
***Capital Investment includes only real property improvements such as new facilities and structures,site improvements,facility
expansion, and facility modernization. Capital Investment DOES NOT include land acquisition costs and/or any existing
improvements,or personal property(such as machinery,equipment,and/or supplies or inventory).
16. For a commercial, industrial, community facility or mixed-use project, how many employees will the
project generate?
17. For a mixed-use project,please indicate the percentage of all uses in the project in the following table.
Table 5 Percentage of Uses in a Mixed-Use Project
Type Square Footage Percentage
Residential
Office
Eating '
Entertainment
Retail sales
Service
Total
III. INCENTIVES - What incentives are you applying for?
Municipal Property Tax Abatements
Must provide Final Plat Cabinet and Slide for Tax Abatement Cabinet 54_$1i
pir 5 years ❑ More than 5 years
[Residential owner occupied ❑Residential Rental Property ❑Apartments(5 plus units) ❑Commercial
Development Fee Waivers
dAll 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 easement vacation application fee
Impact Fee Waivers -The maximum water/wastewater impact fee waiver amount for a commercial,industrial, mixed-
use,7water
munity facility development project is equivalent to the water/wastewater impact fee of two 6-inch meters
(Meter Size 3AL ) (No.of meters �� ❑Transportation
Release of City Liens
Weed liens ❑ Paving liens ❑ Board up/open structure liens ❑ Demolition liens
Revised July 23,2014 4
FORTWORTH Application No.
III. ACKNOWLEDGMENTS l
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.
Z)Wa aLl
(PRINTED OR TYPED NAME) GNATURE) (DAT )
Please mail or fax your application to:
City of Fort Worth Planning and Development Department
1000 Throckmorton Street,Fort Worth,Texas 76102
Tel: (817)392-2222 Fax: (817)392-8116
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 Use Only
Application No. In which NEZ? Council District
Application Completed Date(Received Date): Conform with Zoning? ❑Yes []No
Type? ❑SF ❑ Multifamily ❑Commercial ❑Industrial ❑Community facilities ❑Mixed-Use
Construction completion date? ❑ Before NEZ❑After NEZ Ownership/Site Control ❑ Yes❑No
TAD Account No. Consistent with the NEZ plan? ❑ Yes ❑No
Meet affordability test? ❑Yes ❑No Minimum Capital Investment? ❑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? ❑ Yes ❑No
City liens on this property? City liens on other properties?
• Weed liens ❑Yes ❑No • Weed liens ❑ Yes ❑No
• Board-up/open structure liens ❑Yes ❑No • Board-up/open structure liens ❑Yes ❑No
• Demolition liens ❑Yes ❑No • Demolition liens ❑Yes ❑No
• Paving liens ❑ Yes ❑No • Paving liens ❑ Yes ❑No
• Order of demolition ❑Yes ❑No • Order of demolition ❑Yes ❑No
Certified? ❑Yes ❑No Certified by Date certification issued?
If not certified,reason
Referred to: ❑Economic Development 01-lousing ❑Development ❑Water ❑Code ❑TPW
Revised July 23,2014 5
Exhibit 3
Project Description
Single Family Residence
Hardi Board Siding
3 Bedrooms
2 Baths
Laundry Room
Living Room/Dining Room Combination
1535 Square Feet Air Conditioned
Covered Porch
Single Car Garage
Exhibit 4
Final Survey
To be submitted after construction.
M&C Review Pagel of 2
Official site of the City of Fort Worth,Texas
CITY COUNCILAGENDA FORTIV'ORTTH_
COUNCIL ACTION: Approved on 11/18/2014
DATE: 11/18/2014 REFERENCE NO.: C-27086 LOG NAME: 17NEZTCHP
CODE: C TYPE: NON-CONSENT PUBLIC NO
NO
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Tarrant County
Housing Partnership, Inc., for the Construction of Ten Low-Income Single Family Homes in
the Evans and Rosedale Neighborhood Empowerment Zone (COUNCIL DISTRICT 8)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a five-year Tax Abatement
Agreement with Tarrant County Housing Partnership, Inc., for the construction of ten low-income
single family homes in the Evans and Rosedale Neighborhood Empowerment Zone, in accordance
with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives.
DISCUSSION:
On June 3, 2014, (M&C L-15686) the City Council authorized the direct sale of 12 tax-foreclosed
properties to Tarrant County Housing Partnership, Inc. (TCHP), for the development of low-income
housing. TCHP plans to invest an estimated amount of$1,270,000.00 to construct ten low-income
single family homes of approximately 2,300 to 2,500 square feet each. The homes will be sold to
low-income buyers as a primary residence.
The Housing and Economic Development Department reviewed the application and certified that the
property owner and Project met the eligibility criteria to receive a Neighborhood Empowerment Zone
(NEZ) Municipal Property Tax Abatement. The NEZ 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 will be subject to the
tax abatement for a period of five years starting January 2015.
The municipal property tax on the improved value of each home after construction is estimated in the
amount of$1,085.85 per year for a total amount of$5,429.25 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
owner's first mortgagee or a new homeowner as their primary residence. All other assignments must
be approved by the City Council.
The properties are located in COUNCIL DISTRICT 8, Mapsco 77P, 77Q and 77U.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that this action will not increase the total
appropriations of City funds.
M&C Review Page 2 of 2
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Jesus Chapa (5804)
Cynthia Garcia (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
Elevations and Floor Plans.pdf
List of Properties For Abatement.pdf
TCHP Map.pdf
Tarrant County Housing Partnership, Inc.
Properties for NEZ Abatement
Street Address Block Lot Addition
923 E. Allen Avenue 22 574 Hyde Park
1116 E. Allen Avenue 42 1177 Hyde Park
1203 E. Allen Avenue 44 1244 Hyde Park
1113 E. Baltimore Avenue 39 22 Southland
1004 E. Harvey Avenue 35 2 Southland
1005 E. Harvey Avenue 36 35 Southland
1121 E. Harvey Avenue 36 20 Southland
945 E.Jessamine Street 31 19 Southland
1205 E.Jessamine Street 5 29 Vickery Southeast
1325 E. Jessamine Street 8 21 Vickery Southeast