Loading...
HomeMy WebLinkAboutContract 48442 No FORTWORTH0.) ARYL z NEIGHBORHOOD EMPOWERMENT ZONE TAX ABATEMENT AGREEMENT New construction single-family-owner 7340 Lowery Road 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, in accordance with the authority granted under Chapter 378 of the Texas Local Government Code, and KinoD,LLC, owners of property located 7340 Lowery Road, Lot 10-3R, Block 4, Draughton Heights Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the map or plat recorded in, Cabinet A, Slide 11312, of the Plat Records of Tarrant County, Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. On September 24,2013, the Fort Worth City Council adopted Ordinance No. 20974 (the "Ordinance") establishing"Neighborhood Empowerment Reinvestment Zone No.40" City of Fort Worth, Texas(the"Zone") and adopted Resolution No.4248 establishing"Designation of the Northeast 820/130 Area as a Neighborhood Empowerment Zone" (the "NEZ"). B. 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"). C. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises (the"Project"). D. On July 25,2016, 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. E. The contemplated use of the Premises, the Required Improvements 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. F. 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. Page 1 OFFICIAL RECORD NEZ Tax Abatement Agreement-KinoD,LLC CITY SECRETARY 7340 Lowery Road M&C C-27977 Approved: October 25,2016 FT. WORTH, TX 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 at least 1,943 square feet in size and built to the specifications listed in Exhibit "3", (collectively the "Required Improvements"). 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". 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 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. Page 2 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 ADoroved: October 25,2016 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 as determined by Tarrant Appraisal District in October, 2016, and this amount is $0.00. If the square footage requirement and the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2 Increase in Value. The Abatement shall be 100% of the increase in value from the construction of the Required Improvements and shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements. The Abatement shall not apply to taxes on the land,nor shall the abatement apply to mineral interests. 2.3. Term of Abatement. The term of the Abatement ( "Term") shall begin on January I of the year following the calendar year in which the Required Improvement is completed ('Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5th) anniversary of the Beginning Date. 2.4 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. Page 3 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Approved: October 25,2016 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. 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 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 Page 4 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Approved: October 25.2016 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 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. Page 5 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Approved: October 25.2016 5. EFFECT OF SALE OF PREMISES. Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its primary residence or the homeowner's mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner;however if Owner sells the Premises and 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 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: Owner: City of Fort Worth KinoD, LLC Attn: City Manager P.O. Box 161805 1000 Throckmorton Street Fort Worth, Texas 76161 Fort Worth, Texas 76102 and Neighborhood Services Department Attn: Director 1000 Throckmorton Fort Worth, Texas 76102 Page 6 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 ADDroved: October 25.2016 7. MISCELLANEOUS. 7.1. Bonds The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to the rights of holders of outstanding bonds of the City. 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"3",the body ofthis 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-27977 on October 25,2016, 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. Page 7 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Approved: October 25.2016 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 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. Page 8 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Approved: October 25.2016 CITY OF FORT WORTH: OWNER: By: By: Fernando Costa ,LLC Assistant City Manager a Texas Limited Liability Company Louis O. Clark,Managing Member ATTEST: ® �lo,,eA�q 00 BY: Mary Kayo 'P� City Secretary ,®°uo,t;r,L� r, APPROVED AS TO FORM AND LEGALITY: BY. 1 ") m Melinda Ramos Sr. Assistant City Attorney M & C: C-27977 Date Approved: October 25, 2016 Form 1295 Certification Attached OFFICIAL RECORD CITY SECRETARY FT. I�Y.RTH, TX Page 9 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Anmroved: October 25.2016 STATE OF TEXAS § COUNTY OFARRANT § 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 UNDE MY HAND AND SEAL OF OFFICE this qday Of GIVEN,, ,2016. J - `""""'� TRIKINYA L JOHNSON .`SPAY•PV°'' Notary Publi m an T ;_:' _Notary Public,State of Texas � °'' Comm.Expires 04-17-2018 the State of Texas ;9r +�: I Foc�t,.� Notary ID 1238832-0 STATE OF TEXAS § COUNTY OFARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Louis O. Clark, Managing Member of KinoD,LLC,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. GIU NER MY HAND AND SEAL OF OFFICE this jPQjay of , 2 Notar tic 1n and OT ==3 LE QY PV''i the State of Texas ;_�"• ° Texos ��c Stole5 2019 ., .:.E- 05-2019 320 Page 10 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 Approved: October 25.2016 Exhibit 1: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Required Improvements description Exhibit 4: Final Survey Page 11 NEZ Tax Abatement Agreement-KinoD,LLC 7340 Lowery Road M&C C-27977 ADDroved: October 25,2016 Exhibit 1 Property Description 7340 Lowery Road, Lot 10-3R, Block 4, Draughton Heights Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the map or plat recorded in, Cabinet A, Slide 11312, of the Plat Records of Tarrant County, Texas. Exhibit 2 FORT WORTH, Application No. JZ114 ©C' City of Fort Worth Neighborhood Empowerment Zone (NEZ)Application for Basic Incentives Appliccant Information Property Owner: KInoD LLC Last First ML Address: P O BOX 161805 FORT WORTH TEXAS 76161 Street Address City State Zip Phone: 469-458-6887 Email: LCLARK@KINODLLC.COM Contact: DUNCAN JACQ A (If different) Last First M.I. Phone: 1855-546-6301 ext 102 Email: JADUNCANa-KINODLLC.COM InformationProject NE,Z certifications are project specific.Please describe your project: NEW CONSTRUCTION SINGLE FAMILY HOME M ❑ ❑ ❑ ❑ ❑ Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use' II� Project Address: 7332 LOWERY ROAD FORT WORTH TEXAS 76120 l`�:j AJC(' c�- jam" 0 Street Address Legal Description: LOT 10-IR BLOCK 4 DRAUGHON HEIGHTS ADDITION TO THE CIT OF FORT WORTH Lot Block Addition YES NO YES NO New Construction/Addition: ❑ Remodel/Rehab: ❑ ❑ � Total New Sq.Ft. 2258 Total Development Cost: $85,000, (D Dy o -4 KQI 0LD_E.23$.4 U YES NO Will the NEI Z certified property be occupied by the property owner? ❑ Uyour project is a Mixed Use project,please list all specific uses that are being proposed: Incentives YES NO Do you wish to apply for a Municipal Property Tax abatement for this project?X0 ❑ If the above answer is yes,please contact the City of Fort Worth Neighborhood Services Department at (817)392-7316 or visit hft://fortwoithtexas, og v/neiyhborlioods/NEZ/for additional information. YES NO Do you wish to apply for a release of certain City liens? )WM ❑ Weed,Paving,Demolition and Board Up/Open Structure liens may be released For • g Off ice Use • YES NO Will a Zoning Change application be nec sary=fo_'FIR s oJeet? ❑ )0XX Signature of Zoning Staffs Date: Revised 05/2016 JLE FORTWORTH � Application No. � 2 City of Fort Worth Neighborhood Empowerment Zone (NEZ)Application for Basic Incentives Acknowledgernents hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby acknowledge that I have read the 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 for 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.If the application is not complete within 30 days, it will be withdrawn and application fees paid will not be reimbursed. I agree to provide any additional information for determining eligibility as requested by the City. I understand that if there are taxes due or liens against any property owned in the City of Fort Worth I may not be eligible for NEZ basic incentives. I understand that I must pay all associated fees at the time of project application and/or permit submittal if I wish to submit permits prior to determination of NEZ eligibility. I understand that some permits may not be issued while NEZ eligibility is being established. y KINOD LLC 1az�_ C" JUNE 16 2016 Printed Name of Property Owner Signature of Property Owner Date Please mail,e-Mail or bring your completed application to: City Of Fort Worth Planning and Development Department 1000 Throckmorton Street,Fort:Worth,Texas 76102 E-Mail:DevNezProgram@fortwortlttexas.gov An electronic version of this form is available on our website.For more information on the NEZ Program for Basic Incentives,please visit our web site at http://fortworthtexas. og_vhieighboihoodsNEZ/or contact our office at(817)392-2222 or DevNezProgram@fortworthtexas.gov. For more information on Tax Abatements,see the above website or contact Neighborhood Services at (817)392-7316. For Planning . Development Office Use Only YES, NO r� Project certified for NEZ Basic Incentives: [l"/ ❑ If yes, Certified By: If not certified,reason for denial: Revised 0512M JLE Exhibit 3 Project Description New construction of a single family 2 story residence • Approximately 1,943 square feet • Stucco and Brick Veneer • 3 Bedrooms • 2 1/2 Bathrooms • Kitchen • Living/Dining Room • 2 Car Garage M&C Review Official CITY COUNCIL_ AGENDA FORT '�ORT1i COUNCIL ACTION: Approved on 10/25/2016 DATE: 10/25/2016 REFERENCE NO.: C-27977 LOG NAME: 19NEZKINOD CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with KinoD, LLC, for the Construction of a Single-Family Dwelling Located at 7340 Lowery Road in the Northeast 820/1-30 Neighborhood Empowerment Zone (COUNCIL DISTRICT 5) RECOMMENDATION: It is recommended that the City Council authorize the execution of a five-year Tax Abatement Agreement with KinoD, LLC, for the construction of a single-family dwelling located at 7340 Lowery Road in the Northeast 820/1-30 Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: KinoD, LLC (Property Owner) is the owner of the property described as Lot 10-3R, Block 4, Draughton Heights Addition, an Addition to the City of Fort Worth, Tarrant County, Texas, according to the Map or Plat recorded in Cabinet A, Slide 11312, Plat Records, Tarrant County, Texas, at 7340 Lowery Road, Fort Worth, Texas. The property is located within the Northeast 820/1-30 Neighborhood Empowerment Zone (NEZ). The Property Owner plans to invest an estimated amount of$88,000.00 to construct a single- family dwelling of approximately 1,943 square feet (Project). The Project home will be sold for use as the primary residence of the owner. The Neighborhood Services Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives include a five-year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ. Upon execution of the Agreement, the total assessed value of the improvements used for calculating municipal property tax will be frozen for a period of five years starting January 2017 at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in August 2016 for the properties as follows: Pre-Improvement TAD Value of Improvements—F$—O.0 0 Pre-Improvement Estimated Value of Land 1$10,000.00 Total Pre-Improvement Estimated Value $10,000.00 The municipal property tax on the improved value of the Project after construction is estimated in the amount of$752.00 per year for a total amount of$3,760.00 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. http://apps.cfwnet.org/council_packet/mc review.asp?ID=22925&councildate=10/25/2016[10/26/2016 12:03:56 PM] M&C RQview In the event of a sale, the NEZ Tax Abatement Agreements may be assigned to a new owner's first mortgagee or a new owner as a primary residence. All other assignments must be approved by the City Council. This property is located in COUNCIL DISTRICT 5, Mapsco 66Q. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that approval of the above recommendations will have no material effect on the Fiscal Year 2017 Budget. While no current year impact is anticipated from this action, upon approval reduced revenues will be included in the long-term forecast associated with years 2018-2022. TO Fund Department Account Project Program Activity Budget Reference# Amount ID ID Year (Chartfield 2) FROM Fund Department Account Project Program Activity Budget Reference# Amount ID I I ID I I Year (Chartfield 2) Submitted for City Manager's Office by: Fernando Costa (6122) Originating Department Head: Aubrey Thagard (8187) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS 7340 Lowery Rd Map.ndf 7340 Plans.pdf Form 1295.pdf http://apps.cfwnet.org/council_packet/mc review.asp?ID=22925&councildate=10/25/2016[10/26/2016 12:03:56 PM] C - 27977 C CERTIFICATE OF 1WERESTED PARTIES r-oRm 12'95 loll CorlTAete NOS.1,4 and Gd 11Vrtt erg ininfectud Martial — — OFFICE USE ONLY Curn*le Nu.•.1,2-14,and Q It Mete wena Interestea pwces. CERTIFICATION OF FILING A NNW at Maness entity filing farm,owitt the city,suds tend country of the bur lnes9 eptiiy's place. Cert ricate Number_ 01 bustnem 2016-11500 KIr)aD LLC Fart Worth,TX United States Date Filed: 2 rloxne or voyernmemai entity or srata agency that la p potty to the contract to which We ornt s 0912V2016 bewfi cited Cifyr of Furth'eF4'errih DIM?Ackna edged. g Provilk Ilia idenliitrfintlon number used tIy the gave mm villal entfiy*rmw agRncy to Irock or Idepirty ttw 9inract,arra paovide a dooscriptlon of the senyfoe•9,goods,or either property la be prw4od unttnr the contract. Tex Abatement. Tax Abdtirrnent 4 - fitlturtr or lnte�t r arae of inlerc,tni Pony City.=tale,CoU11IFY(Flucc-at husinr. ,) (check applicable[ i,rrnirulF IntenTwell" 5 Check only it there rr.No Inttirestud Pa ly, r r. AFFlbAVIr I mwar,Pr z iTirin.(HAW pul oQlty 01 partury',Rhrd III L. t&Jve diselasule 15 hue Add 0IFer:1. I ; + M10F L TEMPL.00 NOTARY PUBIC STAT:OF TEYAS -- � - s w M,OSP VIM =_-819nature vi wJu-farrZed agem of cenua,et%hizainass enytyr 14,FFIX.NOTARY STJrM'P A_ 4 sv,u(n iD and 9ubm—.4il ria hefurc rnvt by me swo ��4�t � C 21]_ �s_,w cervi%mirk, oily Iwind;tort seal of ofte. f �, ll �'JG .`s-t:Q ;. �- f-:iiia ����J =•t ��.1I�'j ,s -SiDARIlnc of 4Acir Pi rtrMr2swrarg call) Primed name of ufliror Wmin oring 4m[h Tide al officer bdmInisletin g w1h Furips.Ixovideld tvj Texas Ethics+l on>;Ililssion - wmv.effks.rAate tx,us verskm'd1.4.277