HomeMy WebLinkAboutResolution 3092~.
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A Resolution
NO ~,~U ~
PROVIDING THAT THE CITY OF FORT WORTH ("CITY") ELECTS TO BE
ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT AUTHORIZED BY CHAPTER
312 OF THE TEXAS TAX CODE AND ESTABLISHING A TAX ABATEMENT
POLICY GOVERNING SUBSEQUENT TAX ABATEMENT AGREEMENTS
WHEREAS, a municipality may enter into tax abatement agreements authorized by
Chapter 312 of the Texas Tax Code ("Code ') only if the governing body of the
municipality has previously adopted a resolution stating that the municipality elects to be
eligible to participate in tax abatement. and has established guidelines and criteria
governing tax abatement agreements ("Tax Abatement Policy") and
WHEREAS, pursuant to Code a Tax Abatement Policy is effective for two (2) years from
the date of its adoption and
WHEREAS, the City last adopted a tax abatement policy in 2002
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH,. TEXAS
1 THAT the City hereby elects to be eligible to participate m tax abatement in
accordance with Chapter 312 of the Code
2 THAT the City hereby adopts the Tax Abatement Policy attached hereto as Exhibit
A which constitutes the guidelines criteria, and procedures governing tax abatement
agreements entered into by the City to be effective from June 1 2004 through May 31
2006 unless earlier amended or repealed by a vote of at least three fourths (3/4) of the
members of the City Council
3 THAT this Tax Abatement Policy as it may subsequently be amended will expressly
govern all tax abatement agreements entered into by the City during the period m
which such Tax Abatement Policy is in effect
ADOPTED this 18`" day of May 2004 ~~~~ ~~~~
ATTEST ,..~---.;'ff,- Jill'` ~~ 200
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Exhibit "A"
City of Fort Worth
Tax Abatement Policy
1 GENERAL PROVISIONS.
1.1 Pur ose.
Chapter 312 of the Texas Tax Code allows, but does not obligate or
require, the City to grant a tax abatement on the value added to a particular
property on account of a specific development project that meets the eligibility
requirements set forth m this Policy In order for the City to participate m tax
abatement, the City is required to establish guidelines and cntena governing tax
abatement agreements. This Policy ~s intended to set forth those guidelines and
cntena for persons or entities interested m receiving a tax abatement from the
City This Policy shall expire on June 14 2006
1.2. General Eligibility Criteria.
''. A tax abatement can only be granted to persons or entities eligible for tax
abatement pursuant to Section 312.204(a) of the Texas Tax Code, which persons
or entities as of the effective date of this Policy are (i) the owner of taxable real
property located in a tax abatement reinvestment zone, or (ii) the owner of a
leasehold interest m real property located m a tax abatement reinvestment zone.
Although the City will consider all applications for tax abatement that meet the
eligibility requirements set forth m this Policy rt is especially interested m
development projects that:
• result m the creation of new full-time fobs for Fort Worth Residents and
Central City Residents, and
• are located m the Central Crty and
• result m development with little or no additional cost to the City and
• have a positive impact on Fort Worth Companies and Fort Worth Certified
M1WBE Companies.
1.3. General Exclusions and Limitations.
1.3 1 Lessees of Real Property
A person or entity seeking tax abatement on real property that is
,~ leased from a third party should be advised that, pursuant to state law the
City can only abate taxes on the increased value of the taxable leasehold
Exhibit A. Tax Abatement Policy
Page 1 of 12
_~
• interest m the real property if any and the increase m value of taxable
improvements and tangible personal property located on the real property
and subject to the leasehold interest, if any Before applying for a tax
abatement from the City such persons or entities should seek professional
and legal guidance, and may wish to consult with the appraisal distract
having ~unsdiction over the property m question, as to whether their
development projects will result in a taxable leasehold interest in the
property and, if so the anticipated value of that leasehold interest.
1.3.2. Property Located in Neighborhood Empowerment Zones
"NEZs" .
The Crty Council has designated certain distressed areas of the
City needing affordable housing, economic development and expanded
public services as NEZs. Notwithstanding anything that may be
interpreted to the contrary this Policy does not apply to property located
in a NEZ. A person or entity seeking tax abatement on property owned or
leased m a NEZ should refer to the NEZ Policy m Appendix
1.3.3. Property Located in Tax Increment Reinvestment Zones
"TIFs" .
The Crty Council has designated certain areas of the Crty as TIFs.
This Policy does apply to property located m a TIF However a person or
entity seeking tax abatement on property owned or leased m a TIF should
be advised that state law requires a TIFs board of directors and the
governing bodies of all taxing ~unsdictions contributing tax increment
revenue to a TIF to approve a City tax abatement agreement on property
located m that TIF before the agreement can take effect.
1.3 4 Property Located in Enterprise Zones.
The State of Texas has designated certain areas of the Crty with
high unemployment as enterprise zones. Various economic development
incentives are available to owners of property located m enterprise zones.
In accordance with state law all property located within an enterprise zone
is automatically designated as a tax abatement reinvestment zone.
However the City typically designates individual tax abatement
reinvestment zone overlays when it wishes to grant tax abatements on
property located m an enterprise zone.
2. DEFINITIONS.
Caprtahzed terms used m this Policy but not defined elsewhere shall have the
_ following meanings.
Exhibit A. Tax Abatement Policy
Page 2 of 12
• Abatement or Tax Abatement A full or partial exemption from ad valorem taxes on
eligible taxable real and personal property located in a Reinvestment Zone for a specified
period on the difference between (i) the amount of increase m the appraised value (as
reflected on the certified tax roll of the appropriate county appraisal distract) resulting
from improvements begun after the execution of a written Tax Abatement Agreement and
(ii) the appralsed value of such real estate prior to execution of a written Tax Abatement
Agreement (as reflected on the most recent certified tax roll of the appropriate county
appraisal district for the year prior to the date on which the Tax Abatement Agreement
was executed).
Abatement Benefit Term -The period of time specified m a Tax Abatement
Agreement, but not to exceed ten (10) years, that the recipient of a tax abatement may
receive the Abatement.
Abatement Compliance Term -The penod of time specified in a Tax Abatement
Agreement during which the reciplent of a tax abatement must comply with the
provisions and conditions of the Tax Abatement Agreement and file an annual report
with the City which outlines and documents the extent of the recipient s compliance with
such provisions and conditions.
Capital Investment Only real property improvements such as, without limitation, new
facilities and structures, site improvements, facility expansion, and facility
modernization. Capital Investment does NOT include (i) land acquisition costs, (ii) any
improvements existing on the property prior to execution of a Tax Abatement
Agreement; or (iii) personal property such as, without limitation, machinery equipment,
supplies and inventory
Central City - A geographic area within the Crty defined by the City Council and
shown m the map of Exhibit A of this Policy
Central City Resident - An individual whose principle place of residence is at a location
in the Central Crty
CommerciaUIndustrial Development Project - A development project in which a
facility or facilities will be constructed or renovated on property that is or meets the
requirements to be zoned for commercial or industrial use pursuant to the City's Zoning
Ordinance.
CDBG Eligible Area -Any census tract in which fifty-one percent (51 %) or more of the
residents in that census tract have low to moderate incomes, as defined by the United
States Department of Housing and Urban Development.
Fort Worth Certified M/WBE Company - A mmonty or woman-owned business that
has a principal office located within the corporate limits of the City and has received
certification as either a mmonty business enterprise (MBE) or a woman business
Exhibit A. Tax Abatement Policy
Page 3 of 12
• enterprise (WBE) by the North Texas Central Regional Certification Agency (NCTRCA)
or the Texas Department of Transportation (TxDOT), Highway Division.
Fort Worth Company - A business that has a principal office located within the
corporate limits of the City
Fort Worth Resident - An individual whose principal place of residence is at a location
within the corporate limits of the Crty
Mixed-Use Development Project - A development project In which a facility or
facilities will be constructed or renovated such that (i) at least twenty percent (20%) of
the total gross floor area will be used as residential space and (ii) at least ten percent
(10%) of the total gross floor area will be used for office, restaurant, entertainment and/or
retail sales and service space.
M/WBE Ordinance -City Ordinance No 15530 as may subsequently be amended, or a
successor ordinance thereto
Reinvestment Zone - An area designated by the Crty as a tax abatement reinvestment
zone in accordance with Chapter 312 of the Texas Tax Code.
Residential Development Project - A development project m which a facility or
• facilities will be constructed or renovated as multi family living units on property that is
or meets requirements to be zoned for multi family or mixed-use pursuant to the City's
Zoning Ordinance.
Supply and Service Expenses -Discretionary expenses incurred as part of normal
business operations on the real property subject to tax abatement, such as, by way of
example only office supplies, ~anrtorial supplies and professional services.
Tax Abatement Agreement - A written Agreement that the recipient of a tax abatement
must enter into with the Czty and that outlines the specific terms and conditions
pertaining to and governing the tax abatement.
3. RESIDENTIAL DEVELOPMENT PROJECTS ELIGIBLE FOR TAX
ABATEMENT
To be eligible for tax abatement under this Policy a Residential Development
Project must meet all of the criteria set forth m one of the following paragraphs.
3.1 (i} Be located m the Central City and (ii) Satisfy the Capital Investment
and affordability cntena necessary for a Residential Development Project to be eligible
for tax abatement under the NEZ Policy and (ni) Meet all of the commitments set forth
m Section 6 of this Policy (Standard Requirements for Residential Development Projects
and Certain CommerciaU Industrial and Mixed-Use Development Projects) or
Exhibit A. Tax Abatement Policy
Page 4 of 12
3.2. (i) Be located m a CDBG Eligible Area, and (ii) Have a capital investment
of at least $5 million, and (iii) Cause no greater than 50% of the units be reserved as
affordable housing for persons with incomes at or below eighty percent (80%) of median
family income based on family size (as established and defined by the United States
Department of Housing and Urban Development) and (iv) Meet all of the commitments
set forth m Section 6 of this Policy (Standard Requirements for Residential Development
Projects and Certain Commercial /Industrial and Mixed Use Development Projects) or
3.3. (i) Be located outside of the Central City and (ii) Have a capital investment
of at least $5 million, and (iii) Cause no fewer than 20% of the amts shall to be reserved
as affordable housing for persons with incomes at or below eighty percent (80%) of
median family income based on family size (as established and defined by the United
States Department of Housing and Urban Development) and (iv) Meet all of the
commitments set forth m Section 6 of this Policy (Standard Requirements for Residential
Development Projects and Certain Commercial{Industrial and Mixed-Use Development
Prod ects)
In addition, an applicant for a Residential Development Project tax abatement that
includes, m whole or m part, the renovation of one or more existing structures shall
provide, as part of the applicant's Tax Abatement Application, a detailed description and
the estimated costs of the renovations contemplated.
n
U
4. COMMERCIAL/INDUSTRIAL DEVELOPMENT PROJECTS ELIGIBLE
FOR TAX ABATEMENT
To be eligible for tax abatement under this Policy a Commercial/Industrial
Development Prod ect must meet all of the criteria set forth m one of the following
paragraphs.
41 (i) Have a minimum Capital Investment of $500 000• and (ii) be located m
the Central City or on property immediately adjacent to the mayor thoroughfares which
serve as boundaries to the Central City or within a CDBG Eligible Area, and (iii) meet
all of the commitments of Section 6 of this Policy (Standard Requirements for
Residential Development Projects and Certain Commercial/Industrial and Mixed-Use
Development Pro}ects) or
4.2. (i) Have a minimum Capital Investment of $10 million, and (ii) meet all of
the commitments of Section 6 of this Policy (Standard Requirements for Residential
Development Projects and Certain CommerciaUlndustrial and Mixed-Use Development
Prod ects) or
4.3. (i) Have a minimum Capital Investment of $100 million, and (ii) satisfy
• additional requirements that maybe set forth by the City on a prod ect-specific basis.
Exhibit A. Tax Abatement Policy
Page 5 of 12
• In addition, an applicant for tax abatement on a Commercial/Industrial
Development Project that includes, m whole or m part, the renovation of one or more
existing structures shall provide, as part of the applicant s Tax Abatement Application,. a
detailed description and the estimated costs of the renovations contemplated.
5. MIXED-USE DEVELOPMENT PROJECTS ELIGIBLE FOR TAX
ABATEMENT
To be eligible for tax abatement under this Policy a Mixed-Use Development
Project must meet all of the criteria set forth m one of the following paragraphs.
S.1 (i) Have a minimum Capital Investment of $500 000• and (ii) Be located m
the Central City or on property immediately adjacent to the mayor thoroughfares which
serve as boundaries to the Central Crty or within CDBG Eligible Area, and (iii) meet all
of the commitments of Section 6 of this Policy (Standard Requirements for Residential
and Mixed Use Development Projects and Certain Commercial/Industrial Development
Pro~ects)• or
5.2. (i) Have a minimum Capital Investment of $10 million, and (ii) meet all of
the commitments of Section 6 of this Policy (Standard Requirements for Residential and
Mixed Use Development Projects and Certain CommerciaUIndustrial Development
• Prol ects); or
5.3. (i) Have a minimum Capital Investment of $100 million, and (ii) conszst of
multiple land uses, whereby no single land use would comprise greater than 40% of the
project's land area, and (iii) emphasize live/work/play opportumties with multi modal
access, and, (iv) satisfy additional requirements that may be set forth by the City on a
project-specific basis.
In addition, an applicant for tax abatement on a Mixed Use Development Project
that includes, m whole or m part, the renovation of one or more existing structures shall
provide, as part of the applicant's Tax Abatement Application, a detailed description and
the estimated costs of the renovations contemplated.
6. STANDARD REQUIREMENTS FOR RESIDENTIAL DEVELOPMENT
PROJECTS AND CERTAIN COMMERCIAL/INDUSTRIAL AND
MIXED-USE DEVELOPMENT PROJECTS.
To be eligible for property tax abatement, a Residential Development Project
meeting the requirements set forth m Sections 3 1 3.2 or 3.3 of this Policy a
CommerciaUIndustrial Development Project meeting the requirements set forth in
Sections 4 1 and 4.2 of this Policy and aMixed-Use Development Project meeting the
• requirements set forth in Sections 5 1 and 5.2 shall meet all of the following
requirements
Exhibit A. Tax Abatement Policy
Page 6 of 12
6.1 Commit to provide full-time employment to a set number and/or a
percentage of full time fobs offered on the real property where the Development is
located to Central Crty Residents, which commitment will be agreed upon and set forth m
the Tax Abatement Agreement; and
6.2. Commit to provide full time employment to a set number and/or a
percentage of full-time fobs offered on the real property where the Development is
located to Fort Worth Residents, which commitment will be agreed upon and set forth m
the Tax Abatement Agreement; and
6.3. Commit to spend a set amount or percentage of total construction costs
and annual Supply and Service Expenses with Fort Worth Companies, which
commitment will be agreed upon and set forth m the Tax Abatement Agreement; and
6.4. For the purposes outlined m the Crty's MIWBE Ordinance, agree, as a
base goal, to undertake a good faith effort to spend at least twenty five percent (25%) of
total construction costs and at least twenty five percent (25%) of annual Supply and
Service Expenses with Fort Worth Certified MIWBE Companies, which goal may be
increased or decreased by the City after consultation with the Minority and Women
Business Enterprise Advisory Committee, considering all applicable factors with regard
to the specific Development Project, including, but not limited to, capacity quality and
• puce, and otherwise m accordance with the process applicable pursuant to the Crty's
MIWBE Ordnance; and
6.5. As part of the base goal established pursuant to Section 6 4 above, commit
to spend a set amount or percentage of total construction costs and annual Supply and
Service Expenses with Fort Worth Certified MIWBE Companies, which commitments
will be agreed upon and set forth m the Tax Abatement Agreement and, if not met, will
serve to reduce the value of Abatement m accordance with specific terms and conditions
of the Tax Abatement Agreement; and
6.6. Commit to file a plan with the City as to how the goals and commitments
for use of Fort Worth Certified MIWBE Companies will be attained and, m order to
demonstrate compliance with that plan, (i} to file monthly reports with the City and the
Minority and Women Business Enterprise Advisory Committee throughout the
construction phase of any improvements required by the Tax Abatement Agreement
reflecting then-current expenditures made with Fort Worth Certified MIWBE Companies,
and (ii) from the start of the First Compliance Auditing Year (as defined m Section 8)
until expiration of the Tax Abatement Agreement, to file quarterly reports with the City
reflecting then-current expenditures made with Fort Worth Certified M/WBE Companies.
The City Council may m its sole discretion, require a CommerciaUlndustrial
Development Project meeting the criteria set forth in Section 4.3 of this Policy and a
• Mixed-Use Development Project meeting the criteria set forth m Section 5.3 of this
Policy to satisfy some, all or none of the requirements set forth m this Section 6
Exhibit A. Tax Abatement Policy
Page 7 of 12
C7
7 TAX ABATEMENT CALCULATION
All Tax Abatement Agreements shall require the recipient to construct or cause
construction of specific improvements on the real property that is subject to the
abatement. Failure to construct these specific improvements at the mzmmum Capital
Investment expenditure and by the deadline established m the Tax Abatement Agreement
shall give the City the nght to terminate the Tax Abatement Agreement. The amount of a
particular tax abatement shall be negotiated on a case-by-case basis and specifically set
forth in the Tax Abatement Agreement. The calculation of tax abatement for a
CommerciaUIndustnal Project that meets the requirements of Section 4.3 of this Policy or
for a Mixed Use Development Project that meets the requirements of Section 5.3 of this
Policy shall be negotiated on a case-by-case basis and governed solely by the terms and
conditions of the Tax Abatement Agreement. The calculation of tax abatement for any
other project shall be negotiated on a case-by-case basis, but shall be governed directly in
accordance with the degree to which the recipient meets the four (4) commitments set
forth m Sections 6 1 6.2, 6.3 and 6 4 of this Policy which will be outlined m the Tax
Abatement Agreement. A Tax Abatement Agreement may establish a base abatement
that is (i) reduced m accordance with the recipient's failure to meet one or more of such
commitments or (ii) increased m accordance with the recipient's meeting and/or
exceeding one or more of such commitments.
•
S. TAX ABATEMENT IMPLEMENTATION
The term of a tax abatement shall be negotiated on a case by-case basis and
specified m the Tax Abatement Agreement. The City will audit and determine the
recipient's compliance with the terms and conditions of the Tax Abatement Agreement
for a full calendar year pnor to the first year m which the tax abatement is available (the
"First Compliance Auditing Year") The Compliance Auditing Year shall either be the
full calendar year m which a final certificate of occupancy is issued for the improvements
required by the Tax Abatement Agreement for the real property subject to abatement or
the following calendar year as negotiated and set forth in the Tax Abatement Agreement.
The first tax abatement will be available to the recipient for the tax year following the
Compliance Auditing Year In other words, the degree to which the recipient meets the
commitments set faith m the Tax Abatement Agreement will determine the percentage of
taxes abated for the following tax year The City will continue to audit and determine the
recipient's compliance with the terms and conditions of the Tax Abatement Agreement
for each subsequent calendar year which findings shall govern the percentage of taxes
abated for the following tax year until expiration of the Tax Abatement Agreement.
•
Exhibit A. Tax Abatement Policy
Page 8 of 12
9 TAX ABATEMENT APPLICATION PROCEDURES.
Each tax abatement application shall be processed m accordance with the
following standards and procedures
9.1 Submission of Application.
If a given development prod ect qualifies for tax abatement pursuant to the
eligibility cntena detailed m Section 4 Section 5 or Section 6 of this Policy as
the case maybe, an applicant for tax abatement must complete and submit a City
of Fort Worth Tax Abatement Application (with required attachments) (the
"Application") An Application can be obtained from and should be submitted
to the City's Economic and Community Development Department. In order to be
complete, the Application must include documentation that there are no
delinquent property taxes due for the property on which the development project
is to occur
9.2. Application Fee.
Upon submission of the Application, an applicant must also pay an
application fee. This application fee shall be the lesser amount of (i) one percent
(1%) of the proposed project's Capital Investment and value of personal property
qualifying for Abatement or (ii) $15 000 ("Application Fee") Regardless of
whether the City ultimately grants the applicant a Tax Abatement, zf substantive
construction on the project, as determined by the City m its sole and reasonable
discretion, has been undertaken on the property specified m the application within
one (1) year following the date of its submission, this Application Fee shall be
credited to any permit, impact, inspection or other fee paid by the applicant and
required by the City directly m connection with the proposed project. Otherwise,
the Application Fee shall not be credited or refunded to any party for any reason.
9.3 Application Review and Evaluation.
The Economic and Commumty Development Department will review an
Application for accuracy and completeness. Once complete, the Economic and
Community Development Department will evaluate an Application based on the
perceived meet and value of the project, mcludmg, without limitation, the
following cntena.
• Types and number of new fobs created, mcludmg respective wage rates,
and employee benefits packages such as health insurance, day care
provisions, retirement packages, transportation assistance, employer
sponsored training and education, and any other benefits,
• Percentage of new fobs committed to Fort Worth Residents,
Exhibit A. Tax Abatement Policy
Page 9 of 12
• • Percentage of new~obs committed to Central City Residents,
• Percent of construction contracts committed to (i) Fort Worth Companies
and (ii) Fort Worth Certified M/WBE Companies,
• Percentage of Supply and Service Contract expenses committed to (i) Fort
Worth Companies and (ii) Fort Worth Certified M/WBE Companies,
• Financial viability of the project;
• The project s reasonably projected increase in the value of the tax base,
• Costs to the City (such as infrastructure participation, etc.)
• Remediation of an existing environmental problem on the real property
• The gender ethnic background and length of employment of each member
of the applicants board of directors, governing body or upper
management, as requested by the City and
• Other items that the City may determine to be relevant with respect to the
prod ect.
Based upon the outcome of the evaluation, the Economic and Community
Development Office will present the Application to the City Council s Central
City Revitalization and Economic Development Committee. In an extraordinary
circumstance, the Economic and Community Development Department may elect
to present the Application to the full City Council without initial input from the
Central City Revitalization and Economic Development Committee.
9.4. Consideration by Council Committee.
The City Councils Central City Revitalization and Economic
Development Committee will consider the Application m an open meeting or if
circumstances dictate and the law allows, a closed meeting. The Committee may
either (i) recommend approval of the Application, m which case City staff will
incorporate the terrris of the Application into a Tax Abatement Agreement for
subsequent consideration by the full City Council with the Central City
Revitalization and Economic Development Committees recommendation to
approve the Agreement; (ii) request modifications to the Application, m which
case Economic Development Office staff will discuss the suggested modifications
with the applicant and, if the requested modifications are made, resubmit the
• modified Application to the Central City Revitalization and Economic
Development Committee for consideration, or (iii) deny to recommend
'~ consideration of the Application by the full Crty Council.
Exhibit A. Tax Abatement Policy
Page 10 of 12
9.5. Consideration by the City Council.
A Tax Abatement Agreement will only be considered by the City Council
if the applicant has first executed the Tax Abatement Agreement. The City
Council retains sole authority to approve or deny any Tax Abatement Agreement
and is under no obligation to approve any Application or Tax Abatement
Agreement.
10. GENERAL POLICIES AND REQUIREMENTS.
Notwithstanding anything that may be interpreted to the contrary herein, the
following general terms and conditions shall govern this Policy
10.1 A tax abatement shall not be granted for any development project in which
a building permit application has been filed with the City's Development Department. In
addition, the City will not abate taxes on the value of real or personal property for any
period of time prior to the year of execution of a Tax Abatement Agreement with the
City
10.2. The applicant for a tax abatement must provide evidence to the City that
. demonstrates that a tax abatement is necessary for the financial viability of the
development project proposed.
10.3. In accordance with state law the City will not abate taxes levied on
inventory supplies or the existing tax base.
10.4. An applicant for tax abatement shall provide wage rates, employee benefit
information for all positions of employment to be located m any facility covered by the
Application.
10.5. Unless otherwise specified m the Tax Abatement Agreement, the amount
of real property taxes to be abated in a given year shall not exceed one hundred fifty
percent (150%) of the amount of the minimum Capital Investment expenditure required
by the Tax Abatement Agreement for improvements to the real property subject to
abatement multiplied by the City's tax rate in effect for that same year and the amount of
personal property taxes to be abated in a given year shall not exceed one hundred fifty
percent (150%) of the minimum value of personal property required by the Tax
Abatement Agreement to be located on the real property if any subject to abatement
multiplied by the City's tax rate in effect for that same year
10.6. The owner of real property for which a Tax Abatement has been granted
shall properly maintain the property to assure the long-term economic viability of the
• project. In addition, if a citation or citations for City Code violations are issued against a
Exhibit A. Tax Abatement Policy
Page 11 of 12
project while a Tax Abatement Agreement is m effect, the amount of the tax abatement
~j benefit will be subs ect to reduction, as provided in the Tax Abatement A Bement.
10.7 If the recipient of a tax abatement breaches any of the terms or conditions
of the Tax Abatement Agreement and fails to cure such breach in accordance with the
Tax Abatement Agreement, the City shall have the nght to terminate the Tax Abatement
Agreement. In this event, the recipient will be required to pay the City any property taxes
that were abated pursuant to the Tax Abatement Agreement pnor to its termination.
10.8. As part of the consideration under all Tax Abatement Agreements, the
City shall have, without limitation, the nght to (i) review and venfy the applicant's
financial statements and records related to the development project and the abatement in
each year dunng the term of the Tax Abatement Agreement pnor to the granting of a tax
abatement m any given year and (ii) conduct an on-site inspection of the development
project m each year dunng the term of the Tax Abatement to venfy compliance with the
terms and conditions of the Tax Abatement Agreement. Any incidents of non-
compliance will be reported to all taxing units with ~unsdiction over the real property
subs ect to abatement.
10.9 The recipient of a tax abatement may not sell, assign, transfer or otherwise
convey its nghts under a Tax Abatement Agreement unless otherwise specified m the
Tax Abatement Agreement. A sale, assignment, lease, transfer or conveyance of the real
property that is subject to the abatement and which is not permitted by the Tax
Abatement Agreement shall constitute a breach of the Tax Abatement Agreement and
may result m termination of the Tax Abatement Agreement and recapture of any taxes
abated after the date on which the breach occurred.
Exhibit A. Tax Abatement Policy
Page 12 of 12