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HomeMy WebLinkAboutContract 48816CITYSECRETAft�' �� � CONTRACT N0. TAX ABATEMENT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE 3725 Ave I This TAX ABATEMENT AGREEMENT ("Agreement") is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal coiporation organized under the laws of the State of Texas and acting by and through David Cooke, its duly authoi•ized City Manager, and Rodolfo Preciado, ("Owner"), owner of propei-ty located at 3725 Avenue I, Lot 17, Block 50, Polytechnic Heights Addition, an Addition to the City of Fort Worth, Tanant County, Texas, as shown by deed of record recorded in, Volume 12861, Page 431, of the Deed Records of Tai7ant 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 ai•e true and coi�ect and constitute the basis upon which the City and Owner have entered into this Agz•eement: A. Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood Empoweiment Zone (NEZ) if the municipality determines that the creation of the zone would promote: (1) The creation of affordable housing, including manufactured housing in the zone; (2) An increase in economic development in the zone; (3) An increase in the quality of social services, education, or public safety provided to residents of the zone; or (4) The rehabilitation of affordable housing in the zone. B. Chapter 378 of the Texas Local Government Code provides that a municipality that creates a NEZ, 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 pi•operty owners who own property located in a Neighborhood Empoweiment 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 19, 2015 (Resolution No. 4455). D. The NEZ Incentives contain appropriate guidelines and criteria goveining tax abatement agi•eements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax Code, as amended ("Code"). E. On November 6, 2012, the City Council adopted Ordinance No. 20488 ("Ordinance") establishing "Neighborhood Empoweiment Reinvestment Zone No. 6," City of Fort Worth, Texas ("Zone") and adopted Resolution No. 4144 Re-establishing "Designation of Polytechnic/Wesleyan Area as a Neighborhood Empowerment Zone" ("NEZ"). �. � cF; ' ��' REC���� �,� 9 'Zpll �� R"�A� � wOR� �� �� FORt �`', C1 c1'�SE�R��'� , �.; � V� NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, Januaiy 24, 2017 Page 1 of 11 � OFFI�IAL RECOR,D CITY 8��R�ry'p� - IR'x'� UII1Q�'TI#, TX F. Owner owns certain real property located entirely within the Zone and that is more particularly described in E�ibit "1", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). G. Owner or its assigns plan to consiruct the Required Improvements, as defined in Section 1.1 of this Agreement, on the Premises to be used as a single-family residence that will be used as the owner's primary residence. H. On November 10, 2016, Owner submitted a complete application for NEZ incentives and for t� abatement to the City concerning the contemplated use of the Premises (the "Application"), attached hereto as E�ibit "2" and hereby made a part of this Agreement for all purposes. I. The City Council finds that the contemplated use of the Premises, the Required Improvements, as defined in Section 1.1, and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the Ordinance and other applicable laws, ordinances, rules and regulations. J. The terms of this Agreement, and the Premises and Required Improvements, satisfy the eligibility criteria of the NEZ Incentives. K. Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement, has been furnished in the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located. NOW, THEREFORE, the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct a Single-Family Dwelling, (collectively, the "Required Improvements"), the kind and type of construction are more particularly described in Exhibit "3". Minor variations 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 Required Improvements are 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 of the project 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 sha11 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 NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, January 24, 2017 Page 2 of 11 any required pel�rnits 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 used as the owner's primary residence in accordance with the description of the Project set forth in the Exhibit "3". In addition, Owrier covenants that throughout the Term, the Required Improvements shall be operated and maintained for the puiposes set forth in this Agreement and in a manner that is consistent with the general purposes of encouraging development or redevelopment of the Zone. 2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement of City of Fort Worth imposed taxes on the Premises for the Required Improvements, as specifically provided in this Section 2("Abatement"). Abatement does not include t�es 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 as determined by TAD in 20165, and this amount is $0.00. If the appraised value of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner sha11 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 sha11 the abatement apply to mineral interests. 2.3. Term of Abatement. The tei-m of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which the Required Improvement is completed by final inspection ("Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the iifth (Sth) anniversary of the Beginning Date. 2.4 Protests Over Appraisals or Assessments. NEZ Tax Abatement with Rodolfo Preciado Approved by M&C G28087, January 24, 2017 Page 3 of 11 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 telms 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 E�ibit "3". Owner must provide documentation that Owner is using the Required Improvements as their 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. NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, January 24, 2017 Page 4 of 11 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 Te1m 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 RENTAL PROPERTY 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 detei�rnines 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 sha11 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 Dama�es. If an Event of Default which is defined in Section 4.1 has not been cured within the time frame specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight and involvement by the City; and (iii) otherwise harm the City, and Owner agrees that the amounts of actual damages there from are speculative in nature and will be difiicult 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 NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, January 24, 2017 Page 5 of 11 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 tezmination 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 detez�rnined 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 fol�rnat 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 Packa�e Stores. a. Owner understands and agrees that the City has the right to terminate this agreement if the Required Improvements contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Required Improvements contains or will contain a liquor store or package store. 5. EFFECT OF SALE OF PREMISES. Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required Improvements as a 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 ineeting 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 NEZ Tax Abatement with Rodolfo Preciado Approved by M&C G28087, Januaiy 24, 2017 Page 6 of I 1 Improvements as a 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 T�IE SALE OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF T�IIS 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: City of Fort Worth Attn: City Manager's Office 1000 Throckmorton Fort Worth, Texas 76102 7. MISCELLANEOUS. 7.1. Bonds and Neighborhood Services Dept. Attn: Duector 1000 Throckmorton Fort Worth, Texas 76102 Owner: Rodolfo Preciado 3724 Ave I Fort Worth, Texas 76105 The Required Improvements will not be iinanced 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, ar other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. In NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, January 24, 2017 Page 7 of 11 the event of any conflict between the body of this Agreement and E�ibit "3", 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 constiued 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-28087 on January 24, 2017, which, among other things authorized the City Manager to execute this Agreement on behalf of the City. 7.6. Estoppel Certi�cate. 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 Standin�. 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 Ciiy 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 Cou�-t of Tarrant County, Texas. This Agreement is performable in Tanant 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 NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, January 24, 2017 Page 8 of i l affected or impaired. 7.10 Headin�s Not Controllin�. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a paz-t of this Agreement. 7.11. Entirety of A�reement. This Agreement, including any exhibits attached hereto and any documents incoiporated 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 consider•ed an original, but all of which shall constitute one instrument. CITY OF FORT WORTH: C Fernando Costa Assistant City Manager ATTEST: � �/ ' : City Se OWNER: APPROVED AS TO FORM AND LEGALITY: �� By: (M, �•L- v' Melinda Ramos Sr. Assistant City Attorney M & C: C-28087 .� �, Rodolfo Preciado NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, Januaiy 24, 2017 Page 9 of 11 STATE OF TEXAS § COUNTY OF TARRANT § BEFORE ME, the undersigned authority, on this day personally appear•ed Fernando Costa, Assistant City Manager• of the CITY OF FORT WORTH, a municipal corporation, known to me to be the person and off'icer 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 coiporation, that he was duly authorized to perfoim the same by appropriate resolution of the Ciiy Council of the City of Fort Worth and that he executed the same as the act of the said City for the puiposes and consideration thei•ein expressed and in the capacity therein stated. GIVEN UNDER MY HAND /`���� , 2017. ,i` — � � - � �� �i ��, - Nota�P�lic in a��for the State of Texas f STATE OF TEXAS § COUNTY OF TARRANT § AND SEAL OF OFFICE this .""""'"�. TRIKINYA L JOHNSON ``�O'��,RY PVe i,'i _:; � :Notary Public, State of Texas ;�„':���c Comm. Expires 04-17-2018 �'�:�0;,;��' Notary ID 1238832-0 ?,1�,_day of BEFORE ME, the undersigned authority, on this day personally appeared Rodolfo Preciado, 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 puiposes and consideration therein expressed and in the capacity therein stated. � T"T'' T T"' T'-'TT ".�" T T"'''T' AND SEAL OF OFFICE this ���ay ``�������"' SARAH J. OOIE .` �1�Y• PVB ���� ;:: •`� = NoTory Public. State of Texas ��'••�•'�,: Comm. Expires 1 1•05-2019 �� tE• • � tt+��. °��„°;,,.��` Notary ID 6215320 NEZ Tax Abatement with Rodolfo Preciado Approved by M&C C-28087, January 24, 2017 Page 10 of I 1 of Exhibit l: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Required Improvements description including kind, number and location of the proposed improvements. NEZ Tax Abatement with Rodolfo Preciado Approved by M&C G28087, January 24, 2017 Page 11 of 11 Exhibit 1 Property Description 3725 Avenue I, Lot 17, Block 50, Polytechnic Heights Addition, an Addition to the City of Fort Worth, Tar�ant County, Texas, as shown by deed of record recorded in, Volume 12861, Page 431, of the Deed Records of Tarrant County, Texas. I�!ii117f�+� �URT'�ORTHQ Application No. N Ll ie � C�G4C�'; � City of Fort Worth Neighborhood Empowerment Zone (NEZ) Application for Basic Incentives Last Address: 7�' Phone: Cont�ct: (If d�erent) Phone: ,, FIYSI M.I. i n r �-�� U.� ��I��� �T�C StreetAddress City 5tate Zi �./� ..1 �� �'L`��1� �inail: 'L'"C�G� ,�._� <' ` Gt � � 7 _� ��! 1� `, � 1'YI C,t� �'s�l Last Fir•st Email: M.I. •- . . NEZ certiiications are project specific. Please describe your project: A/b.ta/ h rnmQ_. e.�nS,��ti-� i:: ;/� � ❑ ❑ ❑ ❑ ❑ Single Family Muiti- Family Commercial Industrial Community Facilities Mixed-Use Project Addi•ess: _ �'%�-S .�y`� 1 iv ��' I.va ���j ,`�, '�(.�/L'> `� Street Addr�ess , Legal Description: J 7 5 ( } �%j!�('C�j�] } � ��/y/�-�� �-��'.�/�9f/j Lot . Block ��Additdon YES NO YES NO New Construction / Addition: � ❑ Remodel / Rehab: ❑ ❑ Total New Sq. Ft. ;' J�� Total Development Cost: YES Will the NEZ certified prope►•ty be occupied by the property owner? � If your project is a Mixed Use project, please list all speci�ic uses that are being proposed: YE NO Do you wish to apply fo►• a Municipal Property Tax abatement for tl�is project? ❑ If the above answer is yes, please contact the City of Fort Wo��th Neighborhood Services Depai�tment at (S 17) 392-7316 or visit http://fortwo��thtexas. ov/neighborhoods/NEZ/ for additional information. Do you wish to apply for a release of certain City liens? Weed, Paving, Demolition and Board Up / Open Shucture liens may be released For Zoning Office Use Only YES NO ❑ � NO � YES �O Will a Zoning ChAnge application be necessary r thi� roject? ❑ ( I� Signature of Zoning Staff: � V �Vo�� Date: I I 1� I Revlsed 05I2016 JLE F4�RT WORTH, Application No. r� r ��_ c;�y GS � City of Fort Worth Neighborhood Empowerment Zone (NEZ) Application for Basic Incentives Acknowledge�nents �- ere y cer a e in or a'on provi e�c is r�id accura e o e es o my now a ge. 1 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 ofthe 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 tliat iny application will not be processed if it is incomplete. If the application is not complete witlun 30 days, it will be withdrawn and application fees paid will not be r•eimbursed. I agree to provide any additional information for detei�nining eligibility as requested by the City. I understand that if there are taxes due ar liens against any property owned in the City of Fort Wo��th 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 ofNEZ eligibility. I understand that some peimits may not be issued while NEZ eligibility is being established. , ) -� �- � �r,� i �t(7 _..-�7 f�-� ��— �- f b ame of Proper ,ty Owner Si nature of Prop ty Owner Date Please mail, e-Mail or bringyour completed application to: City of Fart Wor.th Pl�iiiung and DevelopYnent Department , - 1000 Throcicmorton SEreet, Fort Worth, Texas'76102 -- E-Mail; DevNezProgram@forEworthtexas.gov An electrotuc 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.gov/neig�hborhoods/NEZ/ or contact our off'ice 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. • . . �• .. • • YES NO Project certified for NEZ Basic Incentives: ❑ ❑ If yes, Certified By: If not certi�ed, reason for denial: Revlsed 05/2018 JLE Exhibit 3 Project Description New Construction of a single family residence • 1500 square feet living space • 3 bedroom, 2 bath • Front porch • Rear covered patio • Two car garage Mr�C Review Official site of the City of Fort Worth, Texas � �� • � � ' COUNCIL ACTION: Approved on 1/24/2017 DATE: 1/24/2017 REFERENCE NO.: C-28087 LOG NAME: 193725AVE1 CODE: C TYPE: NON-CONSENT PUBLIC HEARING: NO SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Rodolfo Preciado for the Construction of a Single-Family Dwelling Located at 3725 Ave I in the Polytechnic/Wesleyan 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 Rodolfo Preciado for the construction of a single-family dwelling located at 3725 Ave I in the Polytechnic/Wesleyan Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Rodolfo Preciado (Property Owner) is the owner of the property described as Lot 17, Block 50, out of the Polytechnic Heights Addition, situated in the City of Fort Worth, Tarrant County, Texas, as shown by deed of record in Volume 12861, Page 431, Deed Records, Tarrant County, Texas, at 3725 Ave I, Fort Worth, Texas. The property is located within the Polytechnic/Wesleyan Neighborhood Empowerment Zone (NEZ). � jC�= 5�tv� r��:' �:i.�� r�, The Property Owner plans to invest an estimated amount of $58,188.00 to construct an �,�;�� �'�=-� ���''��`�� approximately 1,500 square foot single-family residence (Project). The Project will be use ,�J,�-1���-�-���'' homeowner's primary residence. The Neighborhood Services Department reviewed the application and certified that the Pr Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives includes a Five-Year Municipal Property Tax AbatE __._ _„ 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 2018 at the estimated pre-improvement value as defined by the Tarrant Appraisal District (TAD) in 2016 for the property as follows: Pre-Improvement TAD Value of Improvements $ 0.00 Pre-Improvement Estimated Value of Land $2,000.00 Total Pre-Improvement Estimated Value $2,000.00 The municipal property tax on the improved value of the Project after construction is estimated in the amount of $498.00 per year for a total amount of $2,490.00 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. In the event of a sale of this property, the Tax Abatement Agreement may be assigned to a new http://apps.cfwnet.org/council�ackeUinc_revie�v.asp?ID=24264&councildate=l/24/2017[O1/26/2017 11:24:17 AM] Mu: �C Revie�v owner's first mortgage 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 8, Mapsco 78L. This M&C does not request approval of a contract with a business entity. 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 ID Year (Chartfield 2) Submitted for City Manager's Office b�[_ Originating Department Head: Additional Information Contact: ATTACHMENTS 3725 Ave I Map.pdf Elevation and Site Plan.�df Fernando Costa (6122) Aubrey Thagard (8187) Sarah Odle (7316) http://apps.cf�vnet.org/council�acket/mc review.asp?ID=24264&councildate=l/24/2017[O1/26/2017 ll:24:17 AM]