HomeMy WebLinkAboutContract 46743 CITY SECRETARY i 1
CONTRACT NO. LkO 4:
TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A
NEIGHBORHOOD EMPOWERMENT ZONE
2735 and 2737 Purington 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 James Jacobson, owner of property located at 2735
and 2737 Purington Avenue; Lots 19 & 20, Block 47, Sycamore Heights Addition an Addition to
the City of Fort Worth, Tarrant County, Texas, according to the Plat recorded in Volume 309, Page
11, 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 6, 2014 (Resolution No. 4319).
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 April 22, 2014, the Fort Worth City Council adopted Ordinance No. 18196 (the
M "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No.36" City of
cFort Worth, Texas (the "Zone") and adopted Resolution No.4317 establishing "Designation of
M the Oakland Corners Area as a Neighborhood Empowerment Zone" (the "N
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F. Owner owns certain real property located entirely within the 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").
G. Owner or its assigns plans to rehabilitate the Required Improvements, as defined in
Section 1.1 of this Agreement, on the Premises to be used as an apartment complex (the
"Project").
H. On May 15, 2014 Owner submitted an application for NEZ incentives and tax
abatement to the City concerning the contemplated use of the Premises (the "Application"),
attached hereto as Exhibit "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 Policy
Statement, the Resolution 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.
An interior and exterior remodel of certain improvements (i) consisting of two
apartment buildings, two-stories each, one building with four units and one building with
three units (ii) having a construction cost upon completion of $231,680.00 including site
development costs but such construction costs shall be reduced by any construction cost
saving (collectively, the "Required Improvements"). The type, number and details of the
Required Improvements are described in Exhibit "3". Tarrant Appraisal District must
appraise the property (improvements and land) within 10% of $231,680.00. 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 "4".
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"3".
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1.2. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by
May 6, 2017, (the "Completion Deadline"). The abatement will automatically terminate
two years after Council approval if the Required Improvements are not complete. 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. If the Owner fails to expend at least Two Hundred Thirty One Thousand, Six
Hundred Eighty Dollars ($231,680.00) 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 redeveloped and the
Premises shall be continuously used as multi-family apartments and in accordance with
the description of the Project set forth in the Exhibit "3". 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.
1.4. Property Maintenance.
Owner covenant to ensure high quality management and maintenance of the
Premises for the duration of the abatement, that each building in the development is
suitable for occupancy, taking into account local health, safety, and building codes, and
that Owner will comply with all building codes requirements imposed by the state or
local government unit responsible for making building code inspections. If a violation
report or notice is issued by the governmental unit, the Owner must provide to City either
a statement summarizing the violation report or notice or a copy of the violation report or
notice, and in addition, the Owner must state whether the violation has been corrected.
Failure to maintain property as described above will constitute an Event of Default and
Tax Abatement will be terminated.
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 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.
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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, the Required Improvements, over their
values on April 12, 2015, and this amount is $136,600.00, the year in which this
Agreement was entered into, and certain guidelines set forth in this Section 2. 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.
2.1.1. Abatement Based on Construction Expenses, 10% Affordable
Housing Units.
Owner shall receive a 100 percent (%) Abatement for 5 years on the
improvement value, not including the value of the land, if Owner meets all of the
following requirements:
2.1.2.1 Spends at least $231,680.00 on construction costs of the Required
Improvements to both buildings (including, but not limited to, site development
costs) and;
2.1.2.2 Set aside ten percent (10%) of the total units or one (1) unit,
consisting of a two bedroom apartment for families with income at or below 80%
of Area Family Median Income (AMFI) adjusted annually by the Housing and
Urban Development Department (HUD). and the rent for the one (1) unit does not
exceed thirty percent (30%) of the families' total monthly income. In addition, the
unit shall be compliant with the Americans with Disability Act (ADA). In no
event shall Owner unreasonably deny an 80% of AMFI tenant's application. In
the event that the set aside units fall below the 10% set aside, Owner shall make
its best effort to bring the 10% set aside back into compliance within the time
specified in section 4 or it shall be in default.
Determination of compliance with the one (1) unit set aside for families
with income at or below 80% of median income requirements of this Section 2.1.2
shall be based on Owner's occupancy data on August 1 of each year during the
Compliance Auditing Term, as defined in Section 2.5.
The maximum percentage of Abatement available to Owner under this
Section 2.1. is 100 percent (100%). Owner shall not be eligible for any of the
Abatement under this Section 2.1. unless Owner meets all the requirements set
forth in all four subsections in the paragraphs above. In addition, if the total
construction costs of the Required Improvements are less than as provided in
Section 1.1 of this Agreement, Owner will be ineligible to receive the Abatement
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under this Section 2.1.2.1, but an Event of Default, as defined and addressed in
Section 4, shall also occur.
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, including the Required Improvements but excluding value attributed to the land,
up to a maximum of $350,000.00 on both buildings. In other words, by way of example
only, if the increase in value of the Premises, including the Required Improvements, in a
given year is $400,000.00 on both buildings, Owner's Abatement for that tax year shall be
capped and calculated as if the increase in value of the Premises for that year had only been
$350,000.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or
assessments of the Premises and/or improvements thereon.
2.5. Terms.
January 1 of the year following the year in which a final certificate of occupancy is
issued for the Required Improvements will constitute the start of auditing for compliance of
this Agreement ("Compliance Auditing Term"). Taxes will not be abated during the first
year of the Compliance Auditing Term. The term of the Abatement benefit (the "Term")
shall begin on January 1 of the year following the year that the Compliance Auditing Term
begins (the "Abatement Beginning Date"). Unless sooner terminated as herein provided,
the Term and the Compliance Auditing Term shall end on the December 31 st immediately
preceding their respective fifth (5th) anniversaries. Information for the last Compliance
Auditing Term shall be submitted as indicated in Section 3.3.
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application
fee 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, 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
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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. Audits.
The City shall have the right to audit the financial and business records of Owner
that relate to the Project and Abatement terms and conditions (collectively, the "Records")
at any time during the Compliance Auditing Term in order to determine compliance with
this Agreement. Owner shall make all 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 February 1 following the end every year during the Compliance
Auditing Term, Owner shall provide information and documentation for the previous year
that addresses Owner's compliance with each of the terms and conditions of this
Agreement for that calendar year. This information shall include, but not be limited to, the
following:
3.3.1. The number of units occupied by families with income at or below 80% of
(AMFI) and the rents for those units.
Owner shall supply any additional information requested by the City in its
evaluation of Owner's compliance with each of the terms and conditions of this
Agreement. Failure to provide all information required by this Section 3.3 shall
constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 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.
Owner shall be in default of this Agreement if(i) any of the covenants set forth in
Section 1 and 2 of this Agreement are not met; or (ii) ad valorem real property taxes with
respect to the Premises or the Project, or its ad valorem taxes with respect to the tangible
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personal property located on the Premises, become delinquent and Owner does not timely
and properly follow the legal procedures for protest and/or contest of any such ad valorem
real property or tangible personal property taxes; or (iii) subject to Section 2.1 of this
Agreement, Owner breaches any of the other terms or conditions of this Agreement
(collectively, each an "Event of Default").
4.2. Notice to Cure.
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 (90) calendar days from the date of receipt of this written
notice to fully cure or have cured the Event of Default. If Owner reasonably believes that
Owner will require additional time to cure the Event of Default, Owner shall promptly
notify the City in writing, in which case (i) after advising the City Council in an open
meeting of Owner's efforts and intent to cure, Owner shall have one hundred eighty (180)
calendar days from the original date of receipt of the written notice, or (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 has not been cured within the time frame specifically allowed
under Section 4.2, the City shall have the right to terminate this Agreement immediately.
Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's
economic development and redevelopment efforts on the Premises and in the vicinity of the
Premises; (ii) require unplanned and expensive additional administrative oversight and
involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the
amounts of actual damages 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).
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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
party shall have any further rights or obligations hereunder.
4.5 Sexually Oriented Business & Liquor Stores or Packalle Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement, without cause, 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, without cause, as determined in City's sole discretion if the Project contains
or will contain a liquor store or package store.
5. INDEMNIFICATION.
Owner understands and agrees that the City is not sponsoring the Project or creating any
kind of partnership or joint venture with Owner with regard to the Project, including, but not
limited to, the construction of the Required Improvements. It is expressly understood and agreed
that Owner shall operate as an independent contractor as to all aspects of the Project, and not as
an agent or representative the City. OWNER, AT OWNER'S OWN EXPENSE, SHALL
INDEMNIFY, DEFEND (WITH COUNSEL REASONABLY ACCEPTABLE TO THE
INDEMNIFIED PARTIES HEREIN) AND HOLD HARMLESS THE CITY, ITS
OFFICERS, AGENTS, SERVANTS, EMPLOYEES AND CONTRACTORS, FROM AND
AGAINST ANY CLAIM, LAWSUIT OR OTHER ACTION FOR DAMAGES OFANY KIND,
INCLUDING, BUT NOT LIMITED TO, PROPERTY LOSS, PROPERTY DAMAGE
AND/OR PERSONAL INJUR Y OF ANY KIND, INCL UDING DEA TH, TO ANY AND ALL
PERSONS, OF ANY KIND OR CHARACTER, WHETHER REAL OR ASSERTED, TO THE
EXTENT(i) CAUSED BY THE NEGLIGENT OR WILLFUL ACT(S) OR OMISSION(S) OF
OWNER, ITS OFFICERS, AGENTS, SERVANTS, EMPLOYEES, CONTRACTORS
AND/OR SUBCONTRACTORS, AND (ii) ARISING OUT OF, OCCASIONED BY OR
RELATED TO THE PROJECT OR THE CONSTRUCTION OF THE REQUIRED
IMPROVEMENTS OR ANY OTHER PERFORMANCE OF THIS AGREEMENT.
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6. 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.
7. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the
following, or such other party or address as either party designates in writing, by certified mail,
postage prepaid, or by hand delivery:
City: Owner:
City of Fort Worth James Jacobson
Attn: City Manager 2653 Blue Mound Rd. W. G100
1000 Throckmorton Haslet, Texas 76052
Fort Worth, Texas 76102
and
Neighborhood Services Department
Attn: Cynthia Garcia
1000 Throckmorton
Fort Worth, Texas 76102
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8. MISCELLANEOUS.
8.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
8.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the
City Plan or Zoning Commission or any member of the governing body of any taxing units
in the Zone.
8.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit 'W', the body
of this Agreement shall control.
8.4. 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.
8.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-27278 on May 5, 2015, which, among other things,
authorized the City Manager to execute this Agreement on behalf of the City.
8.6. 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.
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8.7. 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.
8.8. 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.
8.9. Severabilitv.
If any provision of this Agreement is held to be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way
be affected or impaired.
8.10. Headinj4s Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and
shall not be deemed a part of this Agreement.
8.11. 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.
[SIGNATURES FOLLOW ON NEXT PAGE]
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NEZ Tax Abatement with James Jacobson
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CITY OF FORT WORTH: OWNER:
By: 7�—
(,H� By. 4 4 `
Fernando Costa i nes J obson
Assistant City Manager XDwner
ATTEST: OR, G
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Q 00
�s o�
By: _ a
ity Se eV00 o•x
LcXA�
APPROVED AS TO FORM AND LEGAL
By:�ffl (.k d� ✓b
Melinda Ramos
Sr. Assistant City Attorney
M& C: C-27278
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.
_G.VEN UNDER MY HAND AND SEAL OF OFFICE this day of
q e '2015.
Notary Public ' and for TRIKINYA L. JOHNSON
♦ ,yY P
the State of Texas =_ Notary Public,State of Texas
rr My commission Expires
April 17, 2018
OFFICIAL RECORD
CITY SECRETARY
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NEZ Tax Abatement with James Jacobson
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STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared James Jacobson, 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.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this day of
2,015.
Notary u lic in an to SARAH J.ODLE
the State of Texas € ' *? EXPIRES
MY COMMISSION
November 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 2
FORT WORTH ApplicationNo. I no130
CITY OF FORT R"ORTH
-EIGHBORHOOD EIIPOWERNIEN"T ZONE (`'EZ) PROGR.V%I
PROJECT CE RTIFIC ATION APPLIC ATION
I. APPLICATION CHECK LIST - Please submit the following documentation:
® A completed application farm
® A list of all properties owned by the applicant.ower.de%vloper.associates.principals.partners.and agents
in the City Ford Worth
® tion Refundable Application fee—For all Basic Incentives applications excluding Tax Abatement the
application fee is S25 00.For multifamily cotmnercial.mdustnal commercial facilities.and min done tax
abatement applica6. :0.5%of the tote!Capital lin-estment of the project,with a S200.00 minimum and
not to exceed S?000.00;For residential tax abatement apphcatiotrs:5100.00 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(oak if applying for release of City hens)
® A reduced I1x17 Am plaar.site plan.and site elevation with
a written detailed project description that includes a construction time brae
® A detailed line item budget sho%mg the cost breakdown for the project
❑ Copy of Incorporation Papers noting all principah,partners,and agents if applicable
❑ Required-deet with the Cauncilmember and Neighborhood&other Organizations repesetifing the NEZ
as outlined in the Public Notice requirement of the NEZ Policy and Gi idelmes revised April 6.2004 or
followed guiddines of NEZ StrateLoc Plan if a Strategic Plan is in place fox the specific NEZ.
❑ Support letter from Woodlin en Neighborhood Assocratiaa and Woodhaven CaQamaity Dem-lopment
Corporation(For projects located in Woodhaven NEZ oak)
L�;COXIPLETE APPLICATIONS MILL NOT BE PROCESSED FOR CERTIFICATION t'NTIL ALL REQtMMD
DOCUMENTS SHOO- Ll� THE ABOVE CHECKMIST ARE ST-MM-MD MUMN 30 DAYS AFTER THE
APPLICATION IS RECEIVED.
YOi 31iST APPLY FOR TAX ABATEMENT BEFORE ANZ B ILDLNG PERMITS ARE ISSUED FOR YOUR
PROPERTY AND BEFORE ANY IIEPRO«BENTS ARE NUDE TO YOUR PROPERTY. IT TSS 60 TO 90
BI SLNT-SS DAYS TO C ONIPLETE THE TAX ABATE.tffrT AGREEMENT APPROVAL PROCESS AFTER THE
ISSU-�LNCE OF FEZ CERTIFICATION DEPENDM; ON THE CONIPLEI-M OF YOUR PROJECT. ALL
BL LDVG PEP- ITS MUST BE PULLED UTIMN THE 1: MONTH PERIOD THAT CERTIFICATION WAS
APPROVED,OR MUIM THE 1:MONTH PERIOD THAT THE TAX ABATENIEN7 WA$APPROVED,OR YOU
nII.L BE REQ17IRED TO RE APPLY FOR N-EZ VM NTR'ES.
U. APPLICANT f AGENT LNTORALkTION
1. Applicant: JAMES JACOBSON 2. Contact Person: JIM JACOBSON
3. Address: 2653 BLUE UNOUND RD W.G100 HASLET, TX M6Q52
Street City State Zip
a. Phone no.: 017-777-3997 5. FaI NO.:
6. Email: i1scobson7052 bcglobal.not
7. Agent(if any)
8. Address:
Street city State Zip
9. Phone no.: 10,Fax No.:
11. Email:
Re ped Jury 22,2010 1
FORT WORTH elpplicationNo
PROJEC T ELIGIBILITY
1. Please fist down the addresses and legal descriptions of the project and other properties your
organization owns in Fort north. 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 Ow-nershi
Address Zip C ode
(Project Locationi Subdivision Name Lot No. Block No.
2735 PURINGTON AVE 78103 SYCAMORE HEIGHTS ADDW 19 47
2737 PURINGTON AVE 76103 SYCAMORE HEIGHTS ADDW 20 47
Other properties owned in the C in-of Fort Worth -continue on a separate sheet and attach if necessary.
308 CANYON CREEK TRAIL 76112 WOODHAVEN CNTRY CLUB ESTATES 8 31
6266 PALOVERDE COURT 76112 WOODHAYEN CNIRYCLUB ESTATES 10 31
2. For each property fisted in Table 1,please check the boxes below to indicate if:
• there are taxes past due_or
• there are Cin liens:or
•
You (meaning the applicant, developer. associates. agents, principals) have been subject to a Building
Standards Commissions Order of Demohrion where the propeM- was demohshed wathm the last five
Years-
Table 2 Property Taxes and C itv-Liens
Property- C in-Liens on Property
Address Taxes IN"eed Board-up Open Demolition Paring Order of
Due Liens Stucture Lien. Liens Liew Demolition
2735 PURINGTON AVE
2737 PURINGTON AVE Li Li Li
308 CANYON CREEK TRAIL Li LI Li
6266 PALOVERDE COURT Li Li
❑ ❑ ❑ ❑
Li Li
LJ LI Eu 0 Li
(Please attach additioaal:heel:of pair;as needed)
If there are taxes due or liens against any properly in the Gtv of Fort R'orth von may not be eligible
for NTZ incentives
Ren.od July 22,2010 2
FORT WORTH
Apq>licStion'No.
3. Do you own other properties under other names" ❑Yes X]No
If Yes.please specify
1. Does the proposed project conform with City of Fort Worth Zoning" ❑Yes ®ho
If no.what steps are being taken to insure compliance'
S. Project ❑ ® ❑ ❑ ❑ ❑
Ts pe: Smsle Faoaa'ly Vnln-F=z1Y Com hang Iadu:tnal Coommmrty Fadlaw- 4>iiced�T;e
❑o..er oK.�a
Re t BteR m
6. Please describe the proposed residential or commercial project: RENOVAM OF TWO
SIDE-BY-SIDE QUADRAPLEX UNITS
a. If your project is a commercial.industrial.or mined-useproject,please describe the types of
businesses that are being proposed: TWO MULTI-FAMILY QUADRAPLEXES
S. Is this a new construction or rehab project" ❑New Construction ®Rehab
9. How much is the total development cost of your project" $350,920
10. Will the eligible rehabilitation work" equal to at least 30% of the Tarrant Appraisal District(IAD)
assessed value of the structure during the year rehabilitation occurs" ®Yes ❑No
*Bigible rehabilitation inchtdes oaly physical rmprosrments to real property. It does NOT include:
Front)ard fencing consrstmg of chain-link;or solid matenal construction:personal property such as fiwmhue.
appliances_equipment.attdbr supplies.Total eLgrbk rehabilitation costs shall equal to or exceed 30%of the
TAD appraised saiue of the structure durmg the year rehabilitation occws.
11. How much is the total square footage of your project" 8.230 square feet
U apphring for a tar abatement please ans%vr questions 12–16.U not skip to part III Iacentirrs
12.For a s' e-family homeownerft, mixed-use, or multi-family- devtkgpment project, please fill out
the number of residential units based on income range of owners or renters in the following table.
Table 3 Number of Residential Units and Income Range of Owners or Renters
Number of Units Percentage
Income Range
80°o ofA.%M**
At or below 80°o of AMFI g 100
Total Units
•tAI M:Area Mfechm Family Income Now*gee athchoacnt far iaco=e and how pay=ees rm delete:
13. For a multifamilyyroiect to be qualified for tax abatement, at least 20% of total units shall be
affordable to families at or below 80%of A-1IFI. Check the box if you are requesting a waiver of this
requirement. ❑
14. For a commercial, industrial or community facilities proLt, indicate square footage of non-
residential space.
Commercial Industrial C ommumty Facilities
square feeti I— square feet square feet
Reused July 2_2 2010 3
FORT WORTH AWkationNo,
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 J Itemized Budget of the Project
Items amount dotes
2735 PURINGTON RENOVATION $116,780 52 WINDOWS, WALLS,DOORS,FLOORS,APPLIANCES
2737 PURINGTON RENOVATION $105,140 36 WINDOWS, WALLS,DOORS,FLOORS,APPLIANCES
Total $221,920
"Capual ImY.tsnent mcludc only real pwpety nrp wvftveat: :uch=mw fanhte, and Anximm.are unprrn•enmr-..faci2
expan:iaa gad 5dity modwmzaum Captal Im-e:tmmt DOES NOT mrhuie land aogwaaw eat and'or my rxi-ans
iaopotiW3911h.err Pat--=W p pwty(-a&-msclmay.egmpment,amd w atpp1m,a ummoory)
16. For a commercial.industrial,community facility or mixed-use project, how many employees will the
project generate'.
17. For a mixed-nseproject,please indicate the percentage of all uses in the project in the following table.
Table 3 Percentage of LTxs in a Mixed-Use Project
Type Square Footage Percentage
Residential
Office
Eatins
Entertainment
Retail sales
Service
Total
III. L�CE\TI«S - What incentives are you applying for"
ainnicipal Property Tax abatements
Mast provide Final Plat Cabinet and Slide for Tax Abatement Cabinet Slide
® g years ❑More than S)gars
❑Residential owner occupied ❑Residential Rental Property ®Apartments(5 plus units) ❑Commercial
Development Fee Waivers
All building permit related fees(including Plans Review and Inspections)
® Plat application fee(including concept plan.preliminary plat,final plat,short form replat)
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 walertwastewater fact fee waiver amount for a commercial,industrial,mixed-
use,or community facility development project is equivalerd to the waterlwa3tew3ter impact fee of two 64rwh meters
❑ Fater (Meter Size (No.of meters ) ❑Tmmsportatnou
Release of Cin-Liens
❑ Feed Lens ❑Paving hens ❑Board uplopen structure hens ❑Demolition liens
Re%ised July 22,2010 4
FORT WORTH ApplrationNo
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 X710LATTON 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 wr application will not be processed if it is incomplete. I agree to provide any additional
mfomnation for determining eligibility as requested by the City.
JAMES A JACOBSONGo'-44-Qa- & / ZQ
(PRL�iTED OR TYPED NAI E) (AUT11
ZE SIGNATURE) (DATE)
Please mail or fax your application to:
City of Fort Worth Plawd"and Development Department
1000 Tbrockmarton Street,Fort Worth,Teras 7610
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.fortwortbgov-.orglplanningauddevelopment
For Office Use OnIv
Application No_ In which NEZ? Council District
Application Completed Date()teceiv ed Date): ConSarm with Zoning? ❑Yes []No
Type ❑SF []Multif zoily ❑Commercial ❑Mistrial ❑Community facilities ❑2%fixed-Use
Construction completion date? ❑Before NEZ❑After NEZ OwnershipSite Control ❑Yes❑No
TAD Account No. Consistent with the NEZ plan? ❑Yes ❑No
rket aff rdabilit}test? ❑Yes ❑No .Mmmzm Capita)Investn ent) ❑Yes ❑No
Rehab at or higher than 30°0 ❑Yes ❑No Meet mixed-me definition? ❑Yes ❑No
Tax current on this property" ❑Yes ❑No Tax current on other properties? ❑Yes ❑No
City liens on this property? City loris on other properties?
• Weed liens ❑Yes ❑No • IV,eed liens ❑Yes ❑NO
•Board-up,open structure Lens ❑Yes ❑No •Board-up open stnrchue Lens ❑Yes ❑No
• Demolition lens ❑Yes ❑No • Demolition liens ❑Yes 0N
• Paving Lens ❑Yes ❑No • Paving hens ❑Yes ❑No
• Order of demolition ❑Yes ❑No • Order of demolition ❑Yes ❑No
Certified? ❑Yes ❑No Certified by Date certification issued?
If not verified.reason
Referred to: ❑Economic Development ❑Housing ODevelopinent []Water []code pTM'
Retried July 22.2010 5
Exhibit 3
Proiect Description
Complete renovation of 2735 and 2737 Purington Avenue including the following:
• Replacing all water lines and plumbing
• Replacing all Electrical
• Installing sub-flooring
• Complete new kitchen including appliances
• Complete new bathroom including vanity, toilet and tub/shower
• New porch/balcony and stairs
• New HVAC units
• Exterior Brick repair
• All new windows
• Ramp on building with ADA Unit
Requirements for the handicapped accessible/ADA compliant unit:
• Ramps at front and back of building
• Roll in shower w/fixed and hand held shower head with hose at least 59" long
• 60 inch turning radius in bathroom
• Grab bars by toilet and shower
• Bathroom sink rim no more than 34" above the floor
• If mirror mounted in bath bottom edge must be no more than 40" above the floor; if
medicine cabinet is mounted then bottom shelf must be no more than 44" above the
floor
• All door hardware no higher than 48" above the floor, including dead bolts and
security peep hole
• Lever type door knobs on all doors
• All door widths must be at least 32"
• Beveled thresholds no higher than 3/4"
• All light switches and controls no higher than 48" above the floor
• At least on 30" section of the kitchen counter must have knee clearance at least 27"
high with the surface no more than 34" above the floor
0 Kitchen sink and counter surface must be no more than 34" above the floor
Exhibit 4
Final Construction Invoices
Will be provided to City after construction is complete and final Certificate of
Occupancy is issued.
M&C Review
Oftel
Ft]It l W0hT I#
CITY C 14CIL AGE04,' " •. •
COUNCIL ACTION: Approved on 5/5/2015
DATE: 5/5/2015 REFERENCE **C-27278 LOG NAME: 17NS
NO.: NEZ2735AND2737PURINGTON
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with James Jacobson
for the Rehabilitation of Two Apartment Buildings on Property Located at 2735 and
2737 Purington Avenue in the Oakland Corners 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 James Jacobson for the rehabilitation of two apartment buildings on property
located at 2735 and 2737 Purington Avenue in the Oakland Corners Neighborhood Empowerment
Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic
Incentives.
DISCUSSION:
James Jacobson (Property Owner) is the owner of the properties described as Lots 19 & 20, Block
47, Sycamore Heights Addition, an Addition to the City of Fort Worth, Tarrant County, Texas,
according to the Plat recorded in Volume 309, Page 11, Plat Records, Tarrant County, Texas,
2735 and 2737 Purington Avenue, Fort Worth, Texas. The property is located within the Oakland
Corners Neighborhood Empowerment Zone (NEZ) and is in compliance with the Oakland Corners
Neighborhood Empowerment Zone Strategic Plan.
The Property Owner plans to invest an estimated amount of$231,680.00 to rehabilitate a 4 unit
two-story apartment building and a two unit two-story apartment building (Project). The
Neighborhood Services 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.
In accordance with the NEZ Tax Abatement Policy and Basic Incentives, 10 percent of the units
shall be affordable and set aside to persons with incomes at or below 80 percent of area median
income based on family size and 10 percent of the units shall be affordable and set aside to
persons with incomes at or below 60 percent of area median income based on family size (as
defined by the U.S. Department of Housing and Urban Development). In addition, at least five
percent of the total units constructed or rehabilitated shall be compliant with the Americans with
Disability Act (ADA) in accordance with Section 504 of the Rehabilitation Act and must be fully
accessible and two percent of the total units constructed must be fully accessible to persons with
sensory impairments.
Upon execution of the Agreement, the total assessed value of the improvements used for
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=21020&councildate=5/5/2015[05/30/2015 5:29:58 PM]
M&C Review
calculating municipal property tax will be frozen for a period of five years starting January 2016 at
the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) on April
12, 2015 for the property as follows:
12735 Purington Avenue: i
Pre-Improvement TAD Value of Improvements $76,200.00
Pre-Improvement Value of Land $7,000.00
Total Pre-Improvement Estimated Value $83,200.00
2737 Purington Avenue: F
Pre-Improvement TAD Value of Improvements $60,400.00
Pre-Improvement Value of Land $7,000.00
Total Pre-Improvement Estimated Value $67,400.00
The municipal property tax on the improved value of the Project after construction is estimated in
the amount of$1,980.86 per year for a total in the amount of$9,904.32 over the five-year
period. However, this estimate may differ from the actual tax abatement value, which will be
calculated based on the TAD appraised value of the property.
The Tax Abatement Agreements may be assigned to an affiliate of the Property Owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner
meets all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 8, Mapsco 78F.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that approval of the above recommendation
will have no material effect on the Fiscal Year 2015 budget. While no current year impact is
anticipated, upon approval of the tax abatement, reduced revenues will be included in the long-
term property tax revenue forecast.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manager's Office bv: Fernando Costa (6122)
Originating Department Head: Cynthia B. Garcia (8187)
Additional Information Contact: Sarah Odle (7316)
http://apps.cfwnet.org/council_packet/mc_review.asp?ID=21020&councildate=5/5/2015[05/30/2015 5:29:58 PM]
M&C Revie"
ATTACHMENTS
2735 and 2737 Pruington Ave Map.pd
2735 and 2737 Purington Current Condition odf
2735 Purington Proposed Redevelopment.af
2737 Purington Proposed Redevelopment g_df
http://apps.cfwnet.org/council_packet/nic_review.asp?ID=21020&councildate=5/5/2015[05/30/2015 5:29:58 PM]