HomeMy WebLinkAboutResolution 4782-05-2017 A Resolution
NO. 4782-05-2017
PROVIDING THAT THE CITY OF FORT WORTH ("CITY") ELECTS TO BE
ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT AS AUTHORIZED BY
CHAPTER 312 OF THE TEXAS TAX CODE AND ESTABLISHING A
NEIGHBORHOOD EMPOWERMENT ZONE TAX ABATEMENT POLICY
GOVERNING SUBSEQUENT TAX ABATEMENT AGREEMENTS FOR PROPERTIES
LOCATED IN A NEIGHBORHOOD EMPOWERMENT ZONE
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 the Code, a Tax Abatement Policy is effective for two (2)
years from the date of its adoption; and
WHEREAS, the City's current Neighborhood Empowerment Zone Tax Abatement
Policy expires on May 19, 2017.
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 in tax abatement in
accordance with Chapter 312 of the Code.
2. THAT the City hereby adopts the Neighborhood Empowerment Zone 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 May 16, 2017 through May 16, 2019
unless earlier amended or repealed by a vote of at least three-fourths (3/4) of the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 Neighborhood Empowerment Zone Tax Abatement Policy, as it may
subsequently be amended, will expressly govern all tax abatement agreements
for properties located in a Neighborhood Empowerment Zone as designated by
City Council and entered into by the City during the period in which such Tax
Abatement Policy is in effect. 44�,4�tin�
A this 16th day of Mav, 2017. �o$p�00(, ' a
0�800 006®�Y
o
ATTE �a $�*�¢�
By: �0 8�d
�� %o0 0000p�
Mary yse City Secretary ��a� 0
oRTWORTFH
Exhibit A
CITY OF FORT WORTH
NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC
INCENTIVES
I. GENERAL PURPOSE AND OBJECTIVES
Chapter 378 of the Texas Local Government Code allows a municipality to create a Neighborhood
Empowerment Zone (NEZ)when a "...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."
The City, by adopting the following NEZ Tax Abatement Policy and Basic Incentives, will
promote affordable housing and economic development in Neighborhood Empowerment Zones.
NEZ incentives will not be granted after the NEZ expires as defined in the resolution designating
the NEZ. For each NEZ, the City Council may approve additional terms and incentives as
permitted by Chapter 378 of the Texas Local Government Code or by City Council resolution.
However, any tax abatement awarded before the expiration of a NEZ shall carry its full term
according to its tax abatement agreement approved by the City Council.
As mandated by state law, the property tax abatement under this policy applies to the owners of
real property. Nothing in the policy shall be construed as an obligation by the City of Fort Worth
to approve any tax abatement application.
II. DEFINITIONS
"Abatement or Tax Abatement" means a full or partial exemption from City of Fort Worth ad
valorem taxes on eligible real and peFSeRa' property located in a NEZ for a specified period on
the difference between (i) the amount of increase in the appraised value (as reflected on the
certified tax roll of the appropriate county appraisal district) resulting from improvements begun
after the execution of a written Tax Abatement Agreement and (ii) the appraised 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).
"Affordable Units"means affordable to persons earning less than 80% Area Median Family
Income (AMFI) as defined by U.S. Department of Housing and Urban Development (HUD) for
single family housing and under 60% AMFI as defined by HUD for rental and multi-family.
"Base Value"is the value of the Real Property Improvements, excluding land, as determined by
the Tarrant County Appraisal District, during the year rehabilitation occurs.
'Building Standards Commission"is the commission created under Sec. 7-77, Article IV. Minimum
Building Standards Code of the Fort Worth City Code.
May 16, 2017 1
Exhibit A
"Capital Investment" includes only Real Property Improvements such as new facilities and
structures, site improvements, facility expansion, and facility modernization. Capital Investment
does NOT include land acquisition costs and/or any existing improvements on the property prior
to the City Council's authorization, or personal property (such as machinery, equipment, and/or
supplies and inventory).
"City of Fort Worth Tax Abatement Policy Statement"means the policy adopted by City Council.
"Commercial/Industrial Development Project" is a development project which proposes to
construct or rehabilitate commercial/industrial facilities on property that is (or meets the
requirements to be) zoned commercial, industrial or mixed use as defined by the City of Fort
Worth Zoning Ordinance.
"Community Facility Development Project"is a development project which proposes to construct
or rehabilitate community facilities on property that allows such use as defined by the City of Fort
Worth Zoning Ordinance.
"Eligible Rehabilitation" includes only physical improvements to Real Property Improvements.
Eligible Rehabilitation does NOT include personal property (such as furniture, appliances,
equipment, and/or supplies).
"Gross Floor Area" is measured by taking the outside dimensions of the building at each floor
level, except that portion of the basement used only for utilities or storage, and any areas within
the building used for off-street parking.
"Minimum Building Standards Code"is Article IV of the Fort Worth City Code adopted pursuant
to Texas Local Government Code, Chapters 54 and 214.
"Minority Business Enterprise (MBE)"and "Women Business Enterprise (WBE)"is a minority or
woman owned business that has received certification as either a certified MBE or certifiedWBE
by either the North Texas Regional Certification Agency (NTRCA) or the Texas Department of
Transportation (TxDot), Highway Division.
"Mixed-Use Development Project" is a development project which proposes to construct or
rehabilitate mixed-use facilities in which residential uses constitute 20 percent or more of the total
gross floor area, and office, eating and entertainment, and/or retail sales and service uses
constitute 10 percent or more of the total gross floor area and is on property that is (or meets the
requirements to be) zoned mixed-use as described by the City of Fort Worth Zoning Ordinance.
"Multi-family Development Project" is a development project which proposes to construct or
rehabilitate 3 or more multi-family residential living units on a property that is (or meets the
requirements to be) zoned multi-family or mixed use as defined by the City of Fort Worth Zoning
Ordinance.
"New Construction"is a newly constructed habitable structure improvement requiring a permanent
foundation. This excludes accessory structures such as sheds and incidental outbuildings.
"Primary Residence"is the residence that has a Homestead Exemption on file with Tarrant County
Appraisal District.
May 16, 2017 2
Exhibit A
"Project" means a "Residential Project, "Commercial/Industrial Development
Project;"Community Facility Development Project, "Mixed-Use Development Project, or a
"Multi-family Development Project."
"Real Property Improvements" — means a habitable structure as defined by the Fort Worth
Building Code.
"Reinvestment Zone"is an area designated as such by the City of Fort Worth in accordance with
the Property Redevelopment and Tax Abatement Act codified in Chapter 312 of the Texas Tax
Code, or an area designated as an enterprise zone pursuant to the Texas Enterprise Zone Act,
codified in Chapter 2303 of the Texas Government Code.
"Residential Project' — means less than 3 residential units.
III. MUNICIPAL PROPERTY TAX ABATEMENTS
A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ- FULL ABATEMENT FOR 5 YEARS
1. A homeowner or
investor of residential single family property shall be eligible to apply for a tax
abatement by meeting the following after certification of the project:
a. Ppepepty io 9"irior_9nG pied o�ri.r, the nrimoni rocir�orino r-f. the helpRe ve pler nriep to
thFiti'I NEZ. desigRiutiep. yi-FFf'��"�rrf.r shall ppe side nF99fvvf 9f 9WiRershiip--baa
WaFFaRty deed, affidavit r-f heirship, 9r a ppebated willshall she"; ppeef ef
Fes
b.
hh-.+
c.
deSigRatf9RquultG�r e)(GeBsf�r 300% ef the us. Value ie r-f the Real Dpepept
IMPFeyel-7 eRtS mrd
d. Dpep�,Y+y i nn+ ,n tax d Rq i + V.4h Z-ah-a+omeRt appliGAtMAR is
i--iv�Chi�r�Trv�-InzrLttTcr rrcfcr�r�t�t�$�vrT�N t cfouccnTcnr-appnvucron�c
hmi++l,.J
2.
a. Real Property Improvements are newly constructed or rehabilitated after NEZ
designation and City Council approval of the tax abatement is granted before
improvements are made;
b. If 42property is owner-occupied and is the primary residence of the homeowner:
homeowner shall provide proof of ownership by a warranty deed, affidavit of
heirship, or a probated will, and shall show proof of primary residence by
homestead exemption;
c. For rehabilitated Real Property Improvements, Eligible Rehabilitation costs on the
Real Property Improvements shall be equal to or in excess of 30% of the Base
Value of the Real Property Improvements;-The sellers eager shall ppevi e fho
d. Property is not in a tax-delinquent status when the abatement application is
submitted; and
May 16, 2017 3
Exhibit A
e. Property is in conformance with the City of Fort Worth Zoning Ordinance however,
a property use that is legal non-conforming shall not be eligible to receive a tax
abatement.
3.
tax oho+^merit by meetiRg the fellewOg.
a. peal PMpei4y r,r9.,P_.R:1P_Ni$ _r'rrPR} ,I•G ny'--^o^vRStf{_1vted_ A-F PP-h"avTrFt-Ated _T'fte.r NEz
decigRatieri and Gity Gel iri^il aeere"aI of the tav ahatemeRt•
b.
Real Dreeepty I1mfnreye.m.eTrT+O shall equal te GF iTe)(Ge sO�f 300oTf -R-Ase
VaTllQie
of the Real Dreeerh, ImereyemeRto•
c. submitted;
a�
d. PFepeFty GeRfeffnaRGe with the Gity ef FeFt WeFth ZeRiRg QFdiRaRGe.
B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement for 5 years.
If ori aPPli^arit -H3p ieo fer a toy ahatemeRt aereemerit vinth a term of five sears er le&
+hip. oeefier, .hall - r,h,
a. Abatements for multi-family development projects for up to 5 years are subject to
City Council approval. The applicant may apply with the I--Iei ioir,rr and F^er,emi^
Develepmer,+ Deear+me^tNeighborhood Services Department for such abatement
after prosect certification.
b. In order to be eligible for a property tax abatement Ue^^ ^emr,le+ier, a multi-family
development prosect Deal Preeepty Imereyemeritomust-be approved by the City
Council prior to the commencement of any aFe-new�y ^^^tea-construction or
rehabilitaton.edafter NIEZ deoieriatieR and Gott/ (mei iri^iI aeereVrol of the toy
ahatemeRt io eraRter_ hefere imereyemerito ore PR-Ade. In addition, a newly
constructed or rehabilitated multi-family development project in a NEZ must
satisfy the following:
2. The project must satisfy one of the following:
i. At least ten percent (10%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development)and set aside to persons with incomes at or below eighty percent
(80%) of area median income based on family size and at least another ten
percent (10%) of the total units constructed or rehabilitated shall be affordable
(as defined by the U. S. Department of Housing and Urban Development)and
set aside to persons with incomes at or below sixty percent (60%) of area
median income based on family size; or
ii. If specifically permitted by the City Council, in its sole discretion, and as
specified in the tax abatement agreement, pay the Fort Worth Housing Finance
Corporation an annual sum equal to $200.00 for each rental residential unit
located on the property which is subject to the tax abatement. The Fort Worth
Housing Finance Corporation is a housing finance corporation created
May 16, 2017 4
Exhibit A
pursuant to authorization by the City Council of the City of Fort Worth in
accordance with Chapter 394, Texas Local Government Code, to assist in the
financing of the costs of residential development and ownership for citizens of
decent, safe and sanitary housing at affordable prices. An applicant's choice
as to whether to commit to an affordable housing set-aside or to an annual
payment to the Fort Worth Housing Finance Corporation must be made prior
to execution of the tax abatement agreement and may not be changed during
the term of the agreement. This annual payment will be due on or before
February 1 of each year in which a tax abatement is granted (or such other
date that may be agreed to in the tax abatement agreement). Failure to pay
the annual payment to the Housing Finance Corporation when due will result
in the forfeiture of the entire tax abatement for the tax year in which payment
was due. Additional terms and conditions governing this annual payment
requirement will be set forth in the tax abatement agreement.
3.In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Act (ADA) in accordance with Section 504
of the Rehabilitation Act, and must be fully accessible and 2% of the total units
constructed must be fully accessible to persons with sensory impairments; and
34. For a multi-family development project newly constructed affea- INE??desig atieR,
the project must provide at least five(5) residential living units OR have a minimum
Capital Investment of$200,000;
45. For a rehabilitation project, the Real PFepei4y lmpFeyeppep.ts P' -st him Ptah'Abilite
after PJE�desig;a+ �Eligible Rehabilitation costs on the Real Property
Improvements shall be at least 30% of the Base Value of the Real Property
Improvements. Such Eligible Rehabilitation costs must come from the
rehabilitation of at least five (5) residential living units or a minimum Capital
Investment of$200,000.
7 11%_1991 Abatement of City 4rJ Valorem +oyes up +e 19 years
dears this con+inn droll annhi
Dei eler,meRt Depar+mer,+ fors .h -Ahateppept
TpATO I thrni irvh F of+he TA4 4hotomon+ 4rvroomont
a. kllulti-family prejeGtG Shall be eligible fer 1991% a-hateppept ef Gity ad valerepp taxes
of the nenr•li+iens herein
the felleniinrv•
1. hepreje.Gt M a.St .GatiSf i GRPS ef �the feIIe rvg•
May 16, 2017 5
Exhibit A
�. 4+ least ten pereen+ (190%) of the +e+al „ni+S eenS+rue+erd Ar rehabilitated droll
Deyelepmen+\ anrd set aside+e perSenS vnyi+h ineemeS At
nr helew nighty nnrnnn+
/99
0/ \ of Arno ha Surd nn family Si7n anrd At Inoc+ one+hepeFGeRt r ton
0
(as defoRed by the I�oept4Tep+ er yr HGYSORg a n rd I I rh a n Dei p m ep+\T�Ta
a n p n �nyi+h inemm�cc o+ nr h any civ+�y nnrnnn+ /G:n O/ \ of Arno
sets te�er�Se,TS ae sixty ���, PA
IrReClian irTRvG_.PR b-883e� nn family size;
iz�.er +�
H. i ,speGifina permitted by the Git � (`n�--vva GOO, OR OtS S81��S�'retleeR, andraS
cpnnifierd in the tax oho+emen+ agreementpay the Fnr+Werth I--In,,Sing Flnanee
(`nrnero+inn an onni,ol sum equal +e $299.99 fpr nosh romp+al rocirdnn+ial „ni+
a+ednnnn +�reperty WhiGh is subjed3+ +e the tax The Fnr+ \Aler+h
P UPSUan+ +e by the btly (`n„neil of the Gi+y of Fnr+ Werth in
aeeerdaRee with Chapter 394 T I I + Cede, +e a +he
--red(-crC-
r� 2Gey,-- QPerRnTe1� "".�r�"r+ ''rrrTnc
flnaneing of the eeS+S of reSirdnn+iol rdeyelnpmen+ anrd eVnynnrShip fer ei+i�enc of
aste v.g"Tet#er +e nemmi+ +e an afferrdahle set aside nr +e an anni,al
the termef the agreemel'I.ThTS ann,,al T
pa\ MPAt \n/,lip,_,p Arlrh� rn
February, f eaevvn
�h year in yhieh a tax ohoteppenITf a08 ed (GF S„nh n+her
rd-ate that mny ahe agreed +e in the tax oho+mmPn+ ogreemnn+) Failure +e pori
the annual payment +e the I--Ie„Sing Flnanee (;nrpnra+inn Whnn rd„n Vnyill rnS„I+
iA. the ferfni+urn of the entire tax oho+mmemn+ fer the tax year in whieh payment
2. arJrJi+ie At IeaSt Fo% of the te-t- SQA-e-AStrueted A-F rehahunrin-AieCI ;hAlz l WQ
enmpllan+ with +hn 4mnrleanS with Disability 4e+ /4f14\ in annerrdannn With Cee+inn
Fen of+hn Rphahili+a+inn 4e+, rd anhe fl-Illyrd aeeeSSihle an70/ of the +e+al unit's,
3. Fpr a m„I+i_family develepmeRt prnie Gt R yily -after NIF7 oma+inn
Capital I.pwpgtmep+ of Q�nn nen•
IRqpFevepAe_.At.,; sshall be at least 0
ef the Base Value ef the Real PFepei4y
Imprey r�+S `�eh € gihle R�ahili+a+inn eAStS PA St eB PAom�frerm�ti"IV
l"1'ITpIVTerRel'lT aT� �TfJf� RAT1T[LT'['f�T�
rehohili+a+inn of At
least five /F\ reSirden+mal liVing „ni+S er a minimum Capital
lAyp_S+men+ of $299049
,
Years 6 +hrn,,gh 19 of t Tra4 4 hAtp cn+r rcenTeni
a. f.-;;Rqmly pFejeGtS shall be eligible feF 0
fer years nn +hrn„gh five of the Tay 4ha+erRep+ 4greemep+ „pen the Sa+i Sfae+inn
T�T�eaT 1T0"G-QTZT,.rte �TTC7CIT lTC�r
of the e prJi+iepS hereip
May 16, 2017 6
Exhibit A
�. leer to be eligible Ft7r a prepei4 � +�-Zcax abatement i innn nmmpIetonR, J
Re lei
\n/
the fnllnIng• "'��
0. 4+ least ten pernen+ (190%)\ of the +n+ C
olci inin+c nnnc+r,in rd+nnr rnhohili+o+nrd droll
�affnrrdvrcrable (as efoRed by the S. epartmrTeRt n�Q n onrd I Irhon
Deyelepmen+) onrd set aside+e peroeno vnii+h innnmeo At
nr helew nighty nnrnnn+
0
pernen+ (190%)\ of the tet-all units nnnc+ri in+erd nr rehabilitated oholl he offerrdohle
o e n n �n ii+h innmm�c o+ nr h gni civ+�i nnrnnn+ /G:nO/ \ of Oreo
G te�er�sens ae sixty ���, PA
raeGli o n izurrTrrvvrmr P_ -h-883P-P-1 GR family smze; er
r. i speGifiGallypermittedhie-Git�� (`ny--vvY-rRGOI, OR '+r$ SA-1i4-9 dlG6ret_.mGR, aR d-r-a$
cnenifierd in the+ov oho+emen+ ogreemen+ pori the Cnr+Werth I- G icing Lino nne
(`erpeFatmen - -AI SYPA al +e $299.99 fer ., gh T
nnr p+-AIr
o+ed + epei4y gni �s euufe Gt +n the tax oho+epp19pt. he Fer+ \/\/er+h
HGHSORg F=Inonne Gerpnr m8 Q g fln Anne GGFPGFatoGR GFPATPd
PUPSUan+ +n by the Gild CG innil of the Gity of Pert kNerth in
rd p
with Qhap+ef394, Texas-LeGal GeverRFReRt Cede teassistrrme
flnonning of the nnc+o of reoirden+iol rdeyelepmen+ onrd n�ninerohip fnr ni+i�enc of
_26; tA_ tA_ GA-R.R.R.R.Ot tA_ -A.R. set aside elp te _AIA
ppoymeRt +n the Pert \/\/nr+h I- G SjyLCinonnn (`nrnnro+inn mi SA hn mordn nrinr
+e evens Linn of the +ov -ay-hro��+nme.ptt�oJ'g�reemnn+ onrd May nn+ he�nhonge d d firing
them term n�agreel" e.pt. �TO onn1 IoI no\ MP-Rt \n/1I dip Arlrh� rn
February �eanhyear in vnihinh o +ov ohote ppenITf a08 ed /n�F S inh n+her
rdo+e +ho+ mo i he agreed +e in the +ov oho+emenG+Togreemen+\ Failure +e noxi
0
nmmPllon+ the 4merinon0 with I'licohility 4n+ /41'14\ in onnnrrdonne With Cen+inn
594 ef them 0
e
nnnc+n in+e rd mi io+ he fi illi onnessihle +e peronno with cep cnni im poirmen+c•
e
,
Capital I.Ayeo+men+ of $299,999;
4. F=A-.r -A Fe-habilitatmeR
,C , �] +
aFtter C�dee�o+itmvT.EItlg�roie—Re.hohili+o+inn nn\,/S,�e—Real Preperty
m p-preyeppelpzS l b
Shale-At le2$ 0%t 3nof the -Ratl-A
-R-Ase 1iciom� 91 thin e21 -rvPert�
Imprey y� r�+S `�nh € gihle R�ohili+o+inn �etS, {-ret �m��mA�j
l"1'ITpIVTerITel'lT TITr- �TAr� LIAITr['Cr['fOTr-
Ing eS;+men+ of $299nnn
May 16, 2017 7
Exhibit A
,
i rink digry hi it get IlmlterJ te-
,
�. utftlZatfep A-f Pert W9Fth n PSfA-F-AIR-agFeedUP9R peFGeRtage of the tet-al
nests fern gstr, Gtieg negtFants•
,
G. i itiliZz-Atiep of nertified migerity -Agrt Viemeg eyipert hi iciness enterprises fnr ori
-Arvreed i ipeg pernegt-Arve of the tet-AI nests fnr nnpstn intieg negtFants•
,
d. p,epeFty;nsp eGtferr
f. Gemmrmrr'rt-tehireTnrc-'AR agFeed ''�P9R ppeFGeRtape of GeRtFall Git`y pee.sideRt-s
:J
a• I-Agr�sn-Apigrv•
,
b. te.P-;;Rt se!estie„-plaRS; a d
im-Ag-Arvemegt pI-Ags.
C. COMMERCIAL, INDUSTRIAL AND COMMUNITY FACILITIES DEVELOPMENT
PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 years
this senting shell -Apphi
Abatements for Commercial, Industrial and Community Facilities Development
Projects for up to 5 years are subject to City Council approval. The applicant may apply
with the HeUSiRg -Agrt Enepemin DevelepmeRt DepzrrtmepA eighborhood Services
Department for such abatement after prosect certification.
In order to be eligible for a property tax abatement, a commercial, industrial and
community facilities development project must satisfy the following:
a. Be located in an area with a NEZ designation;
b. have a minimum capital investment of $75,000 for a proposed new
construction prolect; or
c. for a rehabilitation prolect, Eligible Rehabilitation costs on Real Property
Improvements shall be at least 30% of the Base Value of the Real Property
Improvements, or $75,000, whichever is greater;
d. request and receive City Council approval of the property tax abatement prior
to the commencement of any construction
e. receives certification under Section IV.B.
inArcer to be eligible fnr -A eFt tax abatemegt , pletiep Real Drnpnrh
mprevemegts -Are gevily nngstri inters er reh-Ahilit-Aterd -After NIC7 rIesiry g-Atieg -Agrt �ifii
ei ignil -AppreV-AI of the toy -Ah-Atemegt is Wanted hefere impreiem egts ore m-Arte I
err-er to he eligible fer a prepeFty tax abatemegt Ig add0t0eg -A gewl y negstg inter� er
,
NE-7 must satisfy the felle4R@I•
peg stn jets r� -After NIEZ desirvgotiep mi ist h-AyP -A migimi im Gapitol Ig\/estmegt of
May 16, 2017 8
Exhibit A
Rp-hohili+a+inn enc+c nn the Real Drnner+y Imnreyemen+c droll he a+ leas+ 390/ of
the Base� alue—ef the Teal Prep emeRS, er $75,000, whieheyer
greater.
2. 11%_1991 Abatement of Gott Ord Valerem taxes up +e 19 year,;
years this sen+inn droll annhi
Oho+emen+c agree men+c fnr a (`nmmernial Inrdi istriol anrd (`nmmi inity Conilities
t
DevelepmeRtr preejeGt.S fGF Up to 19 years are-subjes+ to Gity GG innil annrnVal. The
annlinant May annhi With the I- G icing anrd Cnnnnmin Deyelenment Denar+mentfnr,
��++i inh hl++emen+
OQaTTppCIACfCGTITGTIT
TeQTO I three igh F of the Tax 4hatemen+ Agreement
Grim merrnGia��lRdYStFmal anrd (`nmmi inity Canilities Dev nmeRtt preejeGt.,; shall he
eligible fnr 1991 abatement of Gity and Vrolnrem taxes fer the first fide year,.; of the Tax
hAtpp}pAtAgreemeR+ i innn the satisfantien of the fellewing
a. 14. n�n PAPApTrnr-ia�� i Gt ial nr a nnmmi inity fanilitiesdev nmeRt prejee+tTR ewly
rd
Qnnn c+n in+e.�r�d after NIC7 esignatinn mi ic+ have a minimi im Capital In�ies+men"t'�A
b. , it
Rp-.hahilitatinn nests nn the Real Drener+y Imnreyements shall he at least 390/ of
the Ree VAIN ie ilthe te Real Prreeperty ly-,T�preyemeRTS er $75,999, inheyer
m� Tcr� �rr�
gFeate
F
TeaTO 6 +hrnu gh 19 of+ha rAw hAtCTTCT+rrccfreeriTeni
Grim merrnGia��lRdYStFmal anrd (`nmmi inity bev nmeRtt preejeGt.S Shall
eligible fnr 11%_1991 abatement of Gity andyalerem taxes far dears six three igh ten of
the Tax 4h TemeRtt AgreemeRt i innn the satisfantien of the fnlln\ering'
a. An�vrmrmi"reTviaiLT� i ie -ial nr a nnmmi inity fane� dev nmeRtt preejeGtt
,r , are
J
eeRstFueted after NFEZ desogRatmeR must have a MiRMUE]]-Capital 'RvestmeRt ef
$7F999 anrmi .st meet the regQir� �Ts-cf'�hsestion /n\ he� er
Rp-.hahilitatinn nests nn the C?eal Dre+ner+�i Imnreyements shall -he at least `2(10/ o
RiVAf
the ve IN ie et the Realre
, perty I�-�mprevemeRtS, er $7F r�
999 inheves
m� Tcr� �rr�
G. ARY nthelr ter�ls, -;q-s rit'i GG innil of the Gity of Pert k4f rth deems annrenriate
e
nests fnr nnnc+n in+inn nnntrants•
e
2. utitie-n nAf ruertified minority anrd VninmeeevwiTedGhcr .ss eR terprfses leve-AP
agreed i innn nernentage of the tet-al nests fnr nnnc+n in+inn nnntrants•
e
4. eemmit +n hire an agree nnn n ereeetage of G eetral Gity reeodepTS; aRa
May 16, 2017 9
Exhibit A
D. MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ
1. 100% Abatement of City Ad Valorem taxes for 5 years
If ori onnlinorif -fl39 eo fer o fox ohofemeRt orvreemerif yiifh o form of fide Mears er le&
Phos seefier, shall apply.
Abatements for Mixed-Use Development Projects for up to 5 years are subject to City
Council approval. The applicant may apply with the 1=19UsORg and€sA_PA_P:1iG_
De„elepmer,f Dep orfineF4Neighborhood Services Department for such abatement.
In order to be eligible for a property tax abatement, upon completion, a mixed-use
development project Real Drepepty 1mpFeyemerlf0 must request and receive City
Council approval of the property tax abatement prior to the commencement of any
new construction or rehabilitation ape newly ner,ofruv.fer! er rehohilifoferd offer NE=7
imppeyemeRts -gire-m�e-. In addition, a newly constructed or rehabilitated mixed-use
development project in a NEZ must satisfy the following:
1. Residential uses in the project must constitute 20 percent or more of the total Gross
Floor Area of the project and must satisfy one of the following:
i. At least ten percent (10%) of the total units constructed or rehabilitated shall
be affordable (as defined by the U. S. Department of Housing and Urban
Development)and set aside to persons with incomes at or below eighty percent
(80%) of area median income based on family size and at least another ten
percent (10%) of the total units constructed or rehabilitated shall beaffordable
(as defined by the U. S. Department of Housing and Urban Development)and
set aside to persons with incomes at or below sixty percent (60%) of area
median income based on family size; or
ii. If specifically permitted by the City Council, in its sole discretion, and as
specified in the tax abatement agreement, pay the Fort Worth Housing Finance
Corporation an annual sum equal to $200.00 for each rental residential unit
located on the property which is subject to the tax abatement. The Fort Worth
Housing Finance Corporation is a housing finance corporation created
pursuant to authorization by the City Council of the City of Fort Worth in
accordance with Chapter 394, Texas Local Government Code, to assist in the
financing of the costs of residential development and ownership for citizens of
decent, safe and sanitary housing at affordable prices. An applicant's choice
as to whether to commit to an affordable housing set-aside or to an annual
payment to the Fort Worth Housing Finance Corporation must be made prior
to execution of the tax abatement agreement and may not be changed during
the term of the agreement. This annual payment will be due on or before
February 1 of each year in which a tax abatement is granted (or such other
date that may be agreed to in the tax abatement agreement). Failure to pay
the annual payment to the Housing Finance Corporation when due will result
in the forfeiture of the entire tax abatement for the tax year in which payment
was due. Additional terms and conditions governing this annual payment
requirement will be set forth in the tax abatement agreement.
2. In addition at least 5% of the total units constructed or rehabilitated shall be
compliant with the Americans with Disability Act (ADA) in accordance with Section
May 16, 2017 10
Exhibit A
504 of the Rehabilitation Act, and must be fully accessible and 2% of the total units
constructed must be fully accessible to persons with sensory impairments;
a. Office, eating and entertainment, and/or retail sales and service uses in the project
constitute 10 percent or more of the total Gross Floor Area of the project;and
1. A mixed-use development project newly constructed -After NE-7 rdeoinna+inn
must have a minimum Capital Investment of$200,000; or
2. For a rehabilitation project, it A-st he reh-Ab edgier NE-7 rdeoinna+inn
Eligible Rehabilitation costs on the Real Property Improvements shall be at
least 30% of the Base Value of the Real Property Improvements, or
$200,000, whichever is greater.
2. 11%_1990/ Aha+e}eR+ of QtY Ord Valnre taxes HID te �eaTs
4v-&dears +hic con+inn droll apphi
4hat }e.pT nreemep+ nr o N404ed nrninn+c fnr i in +n '19 years
sZ� T � Use I'l a
sHbjeGt +n Gity GG innil approval. The yuplinan+ May apply With thei SjRg
� mf i
d Gnnnein Deyelepmen+ Depar+men+ fnr sur--h oho+emen+ �`J'
F of the Ta.. 4ha+emep+ 4.-.regimen+
Mixed Use Bevekpm ep+ prej ests sh-All be eligible fer 190 - oha+emep+ of Gity
co+iofan+inn of the fn11Ay.4Inn'
senstr ed r reh a h edged-use develepmeRt prejeG+ i ZmHstcry
tie#GIIGWO Rg=
i• Resiep+i�Qses+rthe pre}esmi ist�+ nnnst+i i+e +er more of the+n+a1
� ��Z per�ep
G Fess
4t least teR peFGeRt 0
peFGeRt °
/'190/ \ of a1 i ini+ nnn i in+ er ohili+a+ all he
p r�--Qr{— te#�,--�I I s�Tnstr� ��re �� ��
�errdahale�/� defined h�eU. S. CepanmeRt n�Q n and I Irhan
aevpmeR+\ a et aside to persern'rsy.gi+h At A-.r Q gni ci*
pernen+ (690%) of area median innnnn imTa, booed nn f y Z��r
cpenifierd in the tax aha+emen+ anreemen+ pari the Cnr+Werth 1- G Sinn Cinanne
(`ernes+inn an anni ia1 sum equal +e $299.99 fer eanh rental residential i ini+
HGHSiRg Finance Gerpnr 08 -A hGHSORg finanne GGrpnr Gre—ATed
paTSHan+ +n by the Gild CG innil of the Gity of Pert kNer+h in
nnrrdanne
with Chapter 394, Texas LGGaval GeveMmeRt Gede, tBzrassist 0 zinc
esep+, Safe anrd SAnirtAry hGa rd
n a+ afferahle prises nu
4n applinan+'j c
� r
May 16, 2017 11
Exhibit A
aste v.g"Tether +e nnmmi+ +e an afferrdahle hni icing set aside nr +e an _A.A sol
+e exenuLinn of the +opv yyyo��bartmmen+ onrnmmPn+ onrd moi, nn+ be GIhonnnrd rdi irinn
the teTPA eef the agreel'l empt. This; nnl lal na\,m�t \A,IIT-OYlll a due A_.I�TQ re
February1 of ea Gh year in vn,hinh A tax ohoteppenITf d08 ue/n�F S inh n+hnr
rda+e that may he agreed +e in the tax aha+emen+ agreement) Failure +e earn,
the annYol payment +n the I- G icing Cinanne (;nrnnra+inn When rdi in Vn4011 rocs il+
�n��srdp4rdrd i+rn i Tprpq onrd nnnrd i+innGgey ipFy n�S onni sol noYm�T
Fequ remeRt V.4011 he set fnr+h in the +av oho+em en+ agreement
11
prejeGt nGTsti+i to 19 nnrnnn+ nr mnrn of the tetal Gress Clnnr 4rno of the nrejeGt;
apId
3. A Rew Ppixed-use develepmeRt prejeGt R Ie nstrGted ^IFE-7 desiga at
meR
T
must have aMOROMUEilm Capital 'Rues+mgr,+ of$200,000; e
4. F=A-.r a r ohilita+inn nrej eG+, �tmstbe re Loh'i1'lfli'+CCaT+ -afterNICE-7 desm�.pa+inn.
�igible Re-hahili+a+inn nests nn the Real Drenerty Imnre"emen+s shall he At Ieas+
�3 0 +he Il in the I Dreperty ImnreyemeRt $299 nnn
ppT�Qf Tfl���.r �"Ql'Cf���T'f���TTT0�C1"I�VGTITGTITO� O1�LV�jPP�j
�n,h inh n"nr isgreater
Tears 6 +hres igh 19 of the TrA4 4cvaTcnTec rni tr ice APAt
Mixed Use DeveleppAeRt pFejeGtS Shall be elmole fleeir 1. 1. 0
"olnr axes fen years sox +h � mi i
n� of the Tax 4ha+m �n+ Agreement nnn
�re+�a--+�T� J
ti-IC cotiisfontinn of the fellevn,ing
l"fl rde1 t�eligible IVr a prep.rei4 / tax abatemeRt,
l Innn_�ot/'11'1'11'1letmeR,a fe'P11ly
66nstr,,r_tedAr rphabilitated Ppixed-, se develepmeRt rej ea+ i nA NIF=7 Mist c opt•i c fry
t#e teAeWORg=
6Fess
�• 4t least ten nernent (190%)\ of the tetol -,Amts; nnnctri intend Ar rehohilitoterd droll
be—a#nrd (as defined by the W. S. Bepartmeate# HGtASORg aaa
neP�^i /990/ \ of area merdian innnme haserd nn family cine anrd At
Ieoct ten
r (190%) o' f—itetTal nni inIsT+s.� n-y.dncnTstrn-T+ �nr—rehabilitatedshall hie
�errahle (a-& de{Red h ��C, I rhan
pernent /690 \ of area median innmmebooed
nn faMilysF2��r
H. if speGifiGally permittedtithe Git" GGYRGOIHROts SA-le dassTe#.mGR, and as
ipapr,e r;erpera+inn _A.A appual stAPA—equall- to $299.99 fer eaT h repeal
recird e��nttiA}l i i��n��s��+...�I}}n��na+end nn the nreper+�, Whinh is s�ihient +n the tax ahatemePt-
The
+
T e Pei# V'Y"Ai#h
nnrnnratinn nreaterd nurouan+ +n ai ithnri�atinn by the Gi+" GG innil Af the
Gi+" rt kNA_. h nnrrdanne �h anter 394 texas CBaat
p1T� �r—Ha asp TT
May 16, 2017 12
Exhibit A
Gev eMmreRt Cede t9 th& mfiRaRGiRg of t�Znnataorf-rreocanir-.�reernitiol
caT
.dei elepmer,t aR d a rnhip fer nitizeRs of
deGeRt Safe or,r! oor,i+oni hni SORB at offepdable mines. Ari onnlinor,+'c nhnine
-As t� "�het#er to nnmmit-tA- rvri rvfferr-rvhlo hni iciriry cof_rvcir�o nr fn Ap App A,
�vrT �vrrrrrrr
paymeRt-t9 the Pert�/ni4hH9aciRg Fir,or,ne Gnrnnrrvtirni-rmi'ra.Sit-hP- Prim
464ng the terp:; A-f the agpeemeat. Thils rvr,r,i ial r,a ,meaty,i" vPdup AAr
be€ere
CIs InAthedate that ^rte-be-agTe'ed- t;Tr-the etax aAatemeRtt agpeemeptC`
Coils ire to noxi the aRRI al payment to the H91 iciRg FiRaRGe Gernerotiepy.4he4
dp well reel elf in the fnrfent ire of the entire fox ohotement fer the tax door in
ail^'naml ppayp4e4t TequipemeRt Vim" -h P- Sed ferth OR thP- tax -AhAtep:;ePt
o ry re�crrr.
2. Off„Ge-ea ti R g and-ell te.rt-aipme l t, Teta i t sa;eS-A.Pd- uses Op the
;
and-
3. ARY ^the{_ to .M.S (mit., G9 ir,nil of the Gity ^� yr Pert rV.erlh dee te,
irinli ir�iriry b it rent limiters tn•
,
ttltA-F nnctc fnr nnri ctrl intimi nnritrontc•
,
G. nrenerhi iRspentinri•
,
d. eeP:;P:;t tohiT, a-an agreedUp9R pereentage of F94 Werth es+dents
e. n^mmit +n hire or, agreed i p9R nerve Rtage of Ger,+rol GityresideRtc
ry teRaRt oelentinri nlorio• and
,
h. management PIanS,.-
E. ABATEMENT ELIGIBILITY
1. General Eligibility Criteria
A tax abatement can only be granted to persons eligible for a tax abatement pursuant to
Section 312 of the Texas Tax Code, which persons own taxable real property located in
a NEZ. Staff will review and evaluate each Multi-Family, Commercial, Industrial and
Mixed-Use tax abatement application prior to submission to the City Council. Prolects
must demonstrate:
• development -with no net additional cost to the City while producing a positive
economic impact to the tax paying citizens of Fort Worth
• Promotion of quality, affordable housing and/or mixed income development
• Advancement of high quality development or redevelopment opportunities on
nearby or adjacent properties in a manner that supports the establishment of
a cohesive, distinctive and walkable district or neighborhood
• -Private investment is effectively leveraged.
-4-.-
2. General Exclusion/Limitation
a. 1 rie CitV Council rias designated certain areas of the City as Tax Increment
Reinvestment Zones (TIFs). If a NEZ is located in a TIF, a person or entity seeking Tax
May 16, 2017 13
Exhibit A
Abatement on property owned or leased in a TIF should be advised that state law requires
a TIF's board of directors and t4eth= gevewi+ Qgoverning bodies of all taxing_j ureisdict
ions conetributing tax increment revenue to a TIF to approve a City Tax Abatement
agreement on property located in that TIF before tha agreement can take effect. Tleax-
Irinremept FiRaRGORg Dio+rin+ Gity Gel RGOI Vim" d- iRe eR a Gase hock, eterr�, �se seM.T. the
tax ahatemeRt
DreieGtS mi io+ moo+ all eligibility Feq iirome is speGified in SeGtm R I I I
3. ELIGIBILITY REQUIREMENTS
4.a. A tax abatement shall not be granted for any development project
in which a building permit application, excluding grading and/or demolition,
has been filed with the City's Planning and Development Department. In
addition, the City will not abate taxes on the value of real ^r ^�,a
property for any period of time prior to the year of execution of a Tax
Abatement Agreement with the City.
5-b. If a Project is located in the Woodhaven Neighborhood
Empowerment Zone, in order to be considered "eligible" to apply for a tax
abatement under this Policy, the Woodhaven Community Development
Corporation and the Woodhaven Neighborhood Association must have
submitted a letter of support for the Project to the City of Fort Worth
&c.Tax Abatements for a new construction project will automatically terminate
two years after Council approval of the tax abatement if a building permit
has not been pulled and a foundation has not been poured.
fid. Tax Abatements for a rehabilitation project will automatically
terminate two years after Council approval of the tax abatement if the
project is not complete.
3-e. In order to be eligible to apply for a tax abatement,the property
owner/developer must:
e- 1. Not be delinquent in paying property taxes for any property owned by
the owner/developer, except that an owner/developer may enter into a tax
abatement agreement with the city of Fort Worth for a specific Project if:
4 2. the Project meets NEZ tax abatement criteria; and
3. the applicant is not responsible for the tax delinquency for the Property;
and
3- 4. the applicant enters into an agreement to pay off the taxes under
the guidelines permitted under state law; and
4. 5. the tax abatement shall provide that the agreement shall take effect after
the delinquent taxes are paid in full
f. Not have any City of Fort Worth liens filed against any property owned
by the applicant property owner/developer. "Liens" include, but are not limited to,
weed liens, demolition liens, board-up/open structure liens and paving liens.
q. Projects to be constructed on property to be purchased under a contract
for deed are not eligible for tax abatements.
44. h. Once a NEZ property owner of a residential property(including multi-
May 16, 2017 14
Exhibit A
family) in the NEZ satisfies the criteria set forth in Sections III.A, E.1. and E.2. and
applies for an abatement, a property owner may enter into a tax abatement
agreement with the City of Fort Worth. The tax abatement agreement shall
automatically terminate if the property subject to the tax abatement agreement
is in violation of the City of Fort Worth's Minimum Building Standards Code and
the owner is convicted of such violation.
A tax abatement granted under the criteria set forth in Section III. can only be granted
once for a property in a NEZ for a maximum term as specified in the agreement. If a
property on which tax is being abated is sold, the City may assign the tax abatement
agreement for the remaining term once the new owner submits an application so long
as the new owner complies with all of the terms of the tax abatement agreement.
44- i_A property owner/developer of a multifamily development, commercial,
industrial, community facilities and mixed-use development project in the NEZ
who desires a tax abatement under Sections 111.13, C or D must:
a- 1. Satisfy the criteria set forth in Sections 111.13, C or D, as applicable, aPA-
cvco�c�'v^na FF=3-.-and
1--E.2; ad-n�
2. File an application with the
;tNeighborhood Services Department, as applicable; and
J. The property owner must enter into a tax abatement agreement with
the City of Fort Worth. In addition to the other terms of agreement, the tax
abatement agreement shall provide that the agreement shall automatically
terminate if the owner receives one conviction of a violation of the City of Fort
Worth's Minimum Building Standards Code regarding the property subject to the
abatement agreement during the term of the tax abatement agreement; and
d- If a property in the NEZ on which tax is being abated is sold, the new
owner may enter into a tax abatement agreement on the property for the
remaining term as allowed by the tax abatement agreement.
42-. K. If the terms of the tax abatement agreement are not met, the City Council
has the right to cancel or amend the abatement agreement. In the event of
cancellation, the recapture of abated taxes shall be limited to the year(s) in which
the default occurred or continued.
4-3-. I. The terms of the agreement shall include the City of Fort Worth's right to:
(1) review and verify the applicant's financial statements in each year during the
life of the agreement prior to granting a tax abatement in any given year, (2) conduct
an on site inspection of the project in each year during the life of the
abatement to verify compliance with the terms of the tax abatement agreement, (3)
terminate the agreement if the Project contains or will contain a sexually
oriented business (4 terminate the agreement, as determined in City's sole discretion,
if the Project contains or will contain a liquor store or package store.
4-2L. M Upon completion of construction of the facilities, the City shall no less
than annually evaluate each project receiving abatement to insure compliance with
the terms of the agreement. Any incidents of non-compliance will be reported to the
City Council.
On or before February 1 st of every year during the life of the agreement, any individual
or entity receiving a tax abatement from the City of Fort Worth shall provide information
and documentation which details the property owner's compliance with the terms of
May 16, 2017 15
Exhibit A
the respective agreement and shall certify that the owner is in compliance with each
applicable term of the agreement. Failure to report this information and to provide the
required certification by the above deadline shall result in cancellation of agreement
and any taxes abated in the prior year being due and payable.
4-3-. N . If a property in the NEZ on which tax is being abated is sold, the new
owner may enter into a tax abatement agreement on the property for the remaining
term. Any sale, assignment or lease of the property which is not permitted in the tax
abatement
agreement results in automatic cancellation of the agreement and recapture of any
taxes abated after the date on which an unspecified assignment occurred.
a o. All Multi-Family, commercial, industrial and mixed use tax abatements
will be capped at 150 percent of the Capital Investment.
F. APPLICATION FEE
1. An application fee of$25.00 for all basic incentives, excluding tax abatements.
2. The application fee for residential tax abatements governed under Section IIIA is
$100. The Application Fee shall not be credited or refunded to any party for any
reason.
3. The application fee for multi-family, commercial, industrial, community facilities and
mixed-use development projects governed under Sections III.B., C. and D., is one-half
of one percent (0.5%) of the proposed Project's Capital Investment, with a $200
minimum not to exceed $2,000. The Application Fee shall not be credited or refunded
to any party for any reason.
3-
IV. FEE WAIVERS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. City Council shall determine on a case-by-case basis whether a Project that will contain
or contains a liquor store or package store is eligible to apply for a fee waiver.
2. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for a fee waiver under this Policy, the Woodhaven
Community Development Corporation and the Woodhaven Neighborhood Association
must have submitted a letter of support for the Project to the City of Fort Worth—
however, once the NEZ Plan is submitted for the Woodhaven NEZ, this will no longer
be required.
3. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for development fee waivers.
4. In order for a property owner/developer to be eligible to apply for fee waivers for a
Project, the property owner/developer:
May 16, 2017 16
Exhibit A
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer or applicant;
c. must not have any City liens filed against any property owned by the applicant
property owner/developer, including but not limited to, weed liens, demolition liens,
board-up/open structure liens and paving liens; and
d. of a Project that will contain or contains a liquor store, package store or a sexually
oriented business has received City Council's determination that the Project is
eligible to apply for fee waivers.
Approval of the application and waiver of the fees shall not be deemed to beapproval
of any aspect of the Project. Before construction, the applicant must ensure that the
project is located in the correct zoning district.
B. DEVELOPMENT FEES
1. Once the Application for NEZ Incentives has been approved and certified by the City, the
following fees for services performed by the City of Fort Worth for Projects in the NEZ are
waived for new construction projects or rehabilitation projects that expend at least 30% of
the Base Value of the Real Property Improvements on Eligible Rehabilitation costs:
a. All Building Permit related Fees (including Plans Review and Inspections) except as
stated in IV B. 2. below
b. Plat Application Fee (including Concept Plan, Preliminary Plat, Final Plat, Short Form
Replat)
c. Board of Adjustment Application Fee
d. Demolition fee
e. Structure Moving Fee
f. Community Facilities Agreement (CFA) Application Fee
g. Zoning Application Fee
h. Street and Utility Easement Vacation Application Fee
i. Ordinance Inspection Fees
j. Consent/Encroachment Agreement Application Fees
k. Transportation Impact Fees
I. Urban Forestry Application Fees
m. Sign Permit Fees
2. If a permit or application listed in B (1) is expired, the fee to reactivate, renew or reapply
shall not be waived. In addition, penalties and extension fees or re-permitting fees will not
be waived.
3. Neighborhood Empowerment Zone Fees not specifically listed in the policy and the project
certification letter will not be waived or reduced_.:
a. 'Ryestigatiep C000
h DIAD RP W0AP Fppi.
G. GhaRge r-f Ronr-rrd Cooc
d. IllspeGtiA-R ^vcFcoi,-I., ..f R AI h-19;0RPAS h'A,-r,; ReiRspeGtiep Fee.
P.. App-W Ciro Iricnonfirri Cooc
4. Other development related fees not specified ahI–in this policy may be mea
brought forward fep apppeval bylo City Council on a case-by-case basis as determined by staff
analysis=..- —
May 16, 2017 17
Exhibit A
C. IMPACT FEES
1. Single family and multi-family residential development projects in the NEZ.
Automatic 100% waiver of water and wastewater impact fees will be applied.
2. Commercial, industrial, mixed-use, or community facility development projects in the
NEZ.
a. Automatic 100% waiver of water and wastewater impact fees up to $55,000 or
equivalent to two 6-inch meters for each commercial, industrial, mixed-use or
community facility development project; whichever is less.
b. If the project requests an impact fee waiver exceeding $55,000 or requesting a
waiver for larger and/or more than two 6-inch meter exceeding $55,000, then City
Council approval is required. Applicant may request the additional amount of
impact fee waiver through the Planning and Development Department.
V. RELEASE OF CITY LIENS
A. ELIGIBLE RECIPIENTS/PROPERTIES
1. Project must be located in a NEZ.
2. City Council shall determine on a case-by-case basis whether a Project that will
contain or contains a liquor store or package store is eligible to receive a release of
City liens.
3. If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for release of city liens under this Policy,the
Woodhaven Community Development Corporation and the Woodhaven
Neighborhood Association must have submitted a letter of support for the Project to
the City of Fort Worth.
4. Projects to be constructed on property to be purchased under a contract for deed are
not eligible for any release of City Liens.
5. In order for a property owner/developer to be eligible to apply for a release of city liens
contained in Section V.B., C., D., and E. for a Project, the property owner/developer:
a. must submit an application to the City;
b. must not be delinquent in paying property taxes for any property owned by the
owner/developer;
c. must not have been subject to a Building Standards Commission's Order of
Demolition where the property was demolished within the last five (5)years;
-,.d.must not be responsible for the City of Fort Worth liens on the prosect property;
d-e. must not have any City of Fort Worth liens filed against any other property
owned by the applicant property owner/developer. "Liens" includes, but is not
limited to, weed liens, demolition liens, board-up/open structure liens and paving
liens; and
May 16, 2017 18
Exhibit A
e-f_of a Project that contains or will contain a liquor store, package store or a sexually
oriented business has received City Council's determination the Project is eligible
to receive a release of City liens.
6. In order for a Rehabilitation Project to qualify for a release of city liens, the
owner/developer must spend Eligible Rehabilitation costs on the Property of at least
30% of the Base Value of the Property.
7. Liens listed in this Policy shall be released once the Project Improvements have been
made to the property.
8. Any liens filed after the initial certification of the property shall not be released.
B. WEED LIENS
The following are eligible to apply for release of weed liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use, or
community facility properties.
4. Developers constructing new multi-family, commercial, industrial, mixed-use or
community facility development projects.
C. DEMOLITION LIENS
Builders or developers developing or rehabilitating a property for a Project are eligible to
apply for release of demolition liens for up to $30,000. Releases of demolition liens in
excess of $30,000 are subject to City Council approval.
D. BOARD-UP/OPEN STRUCTURE LIENS
The following are eligible to apply for release of board-up/open structure liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new single family homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use, or
community facility properties.
4. Developers constructing multi-family, commercial, industrial, mixed-use, or community
facility projects.
E. PAVING LIENS
The following are eligible to apply for release of paving liens:
1. Single unit owners performing rehabilitation on their properties.
2. Builders or developers constructing new homes on vacant lots.
3. Owners performing rehabilitation on multi-family, commercial, industrial, mixed-use, or
community facility properties.
May 16, 2017 19
Exhibit A
4. Developers constructing multi-family, commercial, industrial, mixed-use, or community
facility projects.
ALL OTHER CITY LIENS WILL NOT BE WAIVED
VI. PROCEDURAL STEPS
A. APPLICATION SUBMISSION
1. The applicant for NEZ incentives under Sections III. IV., and V. must complete and
submit a City of Fort Worth "Application for NEZ Incentives" and pay the appropriate
application fee to the Planning and Development Department, as applicable.
2. The applicant for incentives under Sections III.C.2 and D.2 must also complete and
submit a City of Fort Worth "Application for Tax Abatement" and pay the appropriate
application fee to the He SiRg ani, Cnr.Pr.rr,il. Develer,meRt DepartmeRtNeighborhood
Services Department. The application fee, review, evaluation and approval will be
governed by City of Fort Worth Neighborhood Empowerment Zone Tax Abatement
Policy and Basic Incentives Stateme Qualifying Development Projects.
3. All NEZ certifications for incentives will expire after five years.
4. NEZ benefits will continue for certified projects (18) eighteen months after a NEZ is
terminated or the NEZ boundary changed.
B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV, AND V
1. The Planning and Development Department will review the application for accuracy
and completeness. A complete application must include proof that:
1. The Project is located in a NEZ;
2. The Public Notification Process has been completed as stated in section IX;
3. The project is in compliance with the adopted NEZ plan if applicable; and
4. The Council Member for the district in which the project is located has approved the
project for certification.
Once the Planning and Development Department determines that the application is
complete, the Planning and Development Department will certify the property
owner/developer's eligibility to receive tax abatements and/or basic incentives based on
the criteria set forth in Section II I., IV., and V. of this policy, as applicable. Once an
applicant's eligibility is certified, the Planning and Development Department will inform
appropriate departments administering the incentives. AR A_r0P_.Rt_AtieR meetiRg With Got
Gr�
r�m morniol inr�i icf riol nr�mmi inifii fonilifioc AF miXPd� ico rl
o�iolrinmorif nrr�ionfc
e ,
it 'IeRS.
May 16, 2017 20
Exhibit A
e Other apppenriate rdenartmeRts if appliGable.
C. APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS
1. Property Tax Abatement for Residential Properties, Commercial, Industrial, Mixed Use,
and Multi-family Development Projects
a. For a completed and certified application for no more than five years of tax
abatement, with Council approval, the City Manager shall execute a tax abatement
agreement with the applicant.
b. Tax abatement applications will be reviewed by staff prior to submission to the City
Council. Prolects must demonstrate :
i_ f-development with no net additional cost to the City while producing a
positive economic impact to the tax paying citizens of Fort Worth
ii. Promotion of quality, affordable housing and/or mixed income
development
iii. Advancement of high quality development or redevelopment
opportunities on nearby or adjacent properties in a manner that
supports the establishment of a cohesive, distinctive and walkable
district or neighborhood
iv. private investment is effectively leveraged
thori foye years of toy ohotemeRt•
1. The HA_,HSiRg aRrd Enr-Rr-m1n I_l pmeRt 1)pp, aptmeR /ill �'�uliuQte a Demi pleted
rd
gino rtifierd appliGatieri h�serd A_R "h'
a. The preje6rS IRGFease iR the ,/'I�u'raev thC�tc v'Rse.
bGgists to the Gity (S Gh os irifrostn infi ire nortinipatieri etn )
r- Derr-exit of r_eristrr_tieri r-eritrAr-ts r_emmltterd te•
rd Other items yihiroh the Gity aR d the appliGa Rt May Regetiate
2. Consideration by the City Council
a. The City Council retains sole authority to approve or deny any tax abatement
agreement and is under no obligation to approve any tax abatement application or
tax abatement agreement. The City of Fort Worth is under no obligation to provide
tax abatement in any amount or value to any applicant.
b. Effective Date for Approved Agreements
i. All tax abatements approved by the City Council will become effective on
January 1 of the year following the year in which a Certificate of Occupancy
(CO) is issued for the qualifying development project (unless otherwise
specified in the tax abatement agreement). Unless otherwise specified in the
agreement, taxes levied during the construction of the project shall be due and
payable.
May 16, 2017 21
Exhibit A
Use Deyelnnmen+ Drnien+S
a.
agreement �nii+h the annlinan+
bCnr a nmmPle+erd anrd ger+ifierd annlina+inn fnr mare than fide dears of tov ohotement;
('1) The HGY g anal Cnnnnmin fly eValllat
,
rd
nmmpleteanrd ner+ifierd annlina+ien haSerd nn`"-''
(a) The pre}esrs-ipr--reaseOn the value of the +av ha,,;,Q
(n) ❑ernent of nnnctri,ntinn nen+ran+S nnmmi++erd +e•
Cert Werth haSerd firms rd
, an
I\Qinerity anrd \A(nmen eVninerd Ri,SineSS Cnternrises /IVIANBCS\
(rd) Other itemsy.ghinh the Gity anrd the annlinan+ may nege+ia+e
(7) GGRsirderotinn by the Gity Ceupnil
The Gity Geupnil retains cele Autherity +e annreye er rdeRy an i tov ohotemen+
+av aha+ + agr + e Gity of Cer+ Werth i ,nrd Re nhliga+ien +n
ere�ea��ee�en� s�er��,�o
preyirde tax ohotement in an i amei,n+ er +e an i onnlinon+
c. Cffenti,ie —Date fnr 4nnreyed 4greemen+S
411 tax aha+emen+S annreyerd by the Gity GeYAnil Vn4011 en Iani,ani
I of the year fnlle\ering the year in Whinh a Gertifinote of QGG lnann\/ (GQ) iS iSSi,erd
rdi,ring the nen S+n,n+inn of the nrnient Shall he due anrd payable
4. Development Fee Waivers
a. For certified applications of development fee waivers that do not require Council
approval, the Planning and Development Department will review the certified
applicant's application and grant appropriate incentives.
b. For certified applications of development fee waivers that require Council approval,
City staff will review the certified applicant's application and make appropriate
recommendations to the City Council.
Impact Fee Waiver
a. For certified applications of impact fee waivers that do not require Council
approval, the Water Department will review the certified applicant's application and
grant appropriate incentives.
May 16, 2017 22
Exhibit A
b. For certified applications of impact fee waivers that require Council approval, the
Water Department will review the certified applicant's application and make
appropriate recommendations to the City Council.
Release of City Liens
a. For certified applications of release of City liens, the H91As+Rg and€sA-RA-P:1iG-
De„elepmer,+ Depai4meRtNeighborhood Services Department will request the
release of the appropriate liens on NEZ tax abatement applicants. The Planning &
Development Department will request the release of liens on NEZ basic incentives
applicants.
VII. REFUND POLICY
In order for an owner/developer of a Project in a NEZ to receive a refund of development
fees or impact fees, the conditions set forth in the Refund of Development and Impact Fee
Policy, attached as Attachment "A", must be satisfied.
VIII. QTLICD IAI!`CAITI\/CC
NIC7•
5.41 al-saes-tax ref,
Iebu�e{
3. Gap firi g
5wh\/TTO"e aIY+l,I1TTOe of tXxTT-pe Ole-sure ppep•ei4ies
6.
P@ws Pg Tax GF
• f •1 f
deRSity hull is papkiRg exemn+i9R
9. T-Av Irirremeri+ CIr17r1GORg (T-!F=)
'110. P ihlir ImppeyemeRtiStFiG (+ DI )
Al. Tax exempt beRd fiRaRGiRg
�z �AerJ QIerL ��
B�Ai�vrvc �rvait6
14. €[yl II_tel\/ IYyestmGTTO
Other ir,rer,+iVec +h-a+ y.411 efferfi i-a+e the ir,+ori+ and p ppeses of NIC7.
1XVIII. Public Notification
a. , 'In order for an owner/developer to apply to receive any
incentives provided for under the NEZ Tax Abatement Policy and Basic Incentives,
Planning and Development staff will send a complete application packet to thea44
er4develeper mi st meet with the—following persons and organizations to
diSGY review the Project:
1 the GG R it fGr the IDicfrirf the Pr/llerf is IGGaterd•, aR d
-21 . the neighborhood associations or community based organizations registered
with the city that are within 300 feet of the proposed Project. The measurement
of the distance between the proposed project and Neighborhood Associations
May 16, 2017 23
Exhibit A
or Community Based Organizations shall be along the property lines
of the street fronts and from front door to front door, and in direct
line across=the intersections, and.
2. the Council Member for the District the Project is located after
comments are received from the registered neighborhood associations
or community based organizations within 300 feet of the proposed
Project.
b. eEshall be satisfied 61PGR:
�
TthE? G vRE?F4dE?VE?lGPe �et♦� �th��ity (;G61nrnicII Member Gr the
Dstr'et the TD
-Tie Iona ed and hberheed asse a e
�rrcr-cn� r�vJcC�-FS�Qcutca--arrcr ei{�n .sQC�z�t�$F�S�r
GG/m{miinity has pyf�Za'tiiGRS registeredwith t are
399 feet Gf the prrv'p'v�v" �`���r
z. mEet�lg- vnr y vG in Member fer the liotFF t the DrejeG
t�S
GGateda4d• ''ncfPGR the GWRer4eVelGPer PPG siding nrGGf thatthe
GW}eF4deVelGPePattpmted tG moot with tho noighbGrhGGd a66GGiatiGn6
and the nG�mr,�T{mei 1�n,It i h"o'cror! Legs registered with the G ty wi n'Tr
m eet—ef where the PFGP�c7eG DFGjOGt IS IGGatE' and thE?
a666GiatiGR6 GP GPgaRiZatiGRS ed—t a mooting With tho
11WRE?F4d E?YalGnar Within tWG WOOkS Gf initial nGntant
ss ee
c. with the PegiSteFed GPgaRiZat
will be satisfied with the fGl!Gw4��.
1 a nPYnf a nortifi��ottor cettG� o�=teredpyf�ZatiGR
Tcr— Qr—cr—ccrm,'r,+ and
dccccr� cc�rJ `"'���y``-'"'���� �crcrvrT
a n ri h i n r t h e n�JV_"rC '�' .�.Jt eet� and �Tla.aGTr–CTITC�T
frGmthenGc + r
e
nr and PE? 61E?6ti-Rg aMeeti-Yig and the rocnGnSo frGm the
X. Ineligible Projects
The following Projects or Businesses shall not be eligible for any incentives under the
City' of Fort Worth's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy
and Basic Incentives:
1. Sexually Oriented Businesses
2. Non-residential mobile structures
XI. Denied Applications
a. NEZ applications will be denied 30 days after submission if all
required documentation is not received by the City.
b. The applicant will have 90 days afterthe date of denial to resubmit the NEZ
application without paying a new application fee.
May 16, 2017 24
Exhibit A
ATTACHMENT A
REFUND OF DEVELOPMENT AND IMPACT FEES POLICY
Purpose
This refund policy is for the purpose of establishing the conditions under which the City
may refund development and impact fees, normally waived through the Neighborhood
Empowerment Zone (NEZ).
Applicability
Unless expressly accepted, this policy applies to all development and impactfees
waived by the City through the NEZ.
Under the NEZ Tax Abatement Policy and Basic Incentives, City Departments are
authorized to waive impact and development fees for qualified projects located in a
designated NEZ. The impact fees include only water and sewer impact fees, upto
$55,000 for commercial, industrial, mixed-use or community facilities projects. The
development fees that can be waived through the NEZ include:
1. All building permit fees (including Plans Review and Inspections)
2. Plat application fee (including concept plan, preliminary plat, final plat, short form
replat)
3. Board of Adjustment application fee
4. Demolition fee
5. Structure moving fee
6. Community Facilities Agreement (CFA) application fee
7. Zoning application fee
8. Street and utility easement vacation application fee.
To take advantage of these waivers, applicants need to obtain a certification letterfrom
the Planning and Development Department.
Conditions for Refunds
The City will consider refunds only when circumstances beyond the developers control
prevent them from obtaining the qualification letter from the Planning and Development
Department.
A property owner and/or developer may qualify for a refund if the proposed
development project meets all criteria to receive a fee waiver under the NEZTax
Abatement and Basic Incentives Policy and:
a. The owner and/or developer was not made aware of the NEZ incentives at the
time the fees were paid; or
b. The owner and/or developer was mistakenly told that his/her property was not in
a designated NEZ; or
May 16, 2017 25
Exhibit A
c. The owner and/or developer has put funds in an escrow account with a City
Department while awaiting a decision from the City Council about his/her project;
or
d. City Council authorizes a City Department to issue a refund to the
owner/developer.
Refund Charge
A refund charge will be assessed to help defray administration cost associated with the
processing of refund check. The charge shall be 20% of the amount of the refund.This
charge will be automatically deducted from the total refund amount.
Statute of Limitations
Any request, action or proceeding concerning the refund of fees normallywaived
through the NEZ must be filed within ninety days following the date that the feeswere
paid. An applicant who does not submit a refund request within 90 days of the
transaction shall not qualify for a refund.
To obtain a refund the applicant needs to:
• submit a NEZ application to the Planning and Development Department for
determination of the eligibility for NEZ fee waivers, and
• submit a written request to the Department in which the fees were paid. Upon
receiving a confirmation from the Planning and Development Department that the
project meets all NEZ fee waiver criteria, that Department shall process the request
based on the qualifications discussed in this policy.
Exemptions
The provisions of this policy do not apply to:
a. Fees that are not waived through the NEZ program; and
b. Taxes and special assessments; and
c. City liens such as mowing, board-up, trash, demolition and paving liens.
An applicant shall not qualify for any refund if:
a. The applicant was made aware of the NEZ incentives before he/she pays the
fees; or
b. The applicant does not meet the requirements for NEZ incentives at thetime
he/she paid the fees; or
c. The applicant paid the fees before the refund policy was put in place; or
d. The applicant paid the fees before the designation date of the NEZ.
Disclaimer
In the event of any conflict between the City's ordinances or regulations and this policy,
such ordinances or regulations shall control. In the event of any conflict between this
May 16, 2017 26
Exhibit A
policy and other policies or regulations adopted by the City Department issuing the
refund, such department policies or regulations shall control. The City reserves the right
to deny any or all request for refunds.
May 16, 2017 27
NEIGHBORHOOD EMPOWERMENT ZONE
ADMINISTRATIVE PROCEDURES
I. Eligible Areas
Map I shows the neighborhood areas that may be eligible for the Neighborhood
Empowerment Zone (NEZ) designation. Neighborhood areas shall meet the following
criteria to be NEZ eligible:
A. Population or size: The population is no more than 6,000 or the area is no larger than
1.5 square miles;
B. The area is at least 75% Community Development Block Grant (CDBG)-eligible_
C. Criteria for Reinvestment Zone— Section 312.202 of the Tax Code (Attachment A);
D. Distress factors as included in Section 312.202 (A)(1) of the Tax Code
(Attachment A);
E. Housing or economic development opportunities;
F. Current and future investments;
G. Community assets;
H. Located within or include state or federal designated empowerment zones, enterprise
zones, mixed-use growth centers, Model Blocks, special target areas, or
commercial corridors; and
L If a proposed NEZ boundary includes an urban village as specified in the
Comprehensive Plan, the urban village must be zoned mixed-use.
II. Designation Process
A. A NEZ may be created through:
1. City Council proposal and designation; or
2. Approval by the City Council of an application filed by an eligible applicant(s), as
defined below.
B. Applying for the NEZ designation.
1. Eligibility of Applicants. The applicant must meet one of the following:
May 16, 2017 1
a. A neighborhood organization, neighborhood development organization,
community development corporation, or community-based business
organization registered with the City operating in areas that are eligible for
the NEZ designation;
b. A neighborhood organization, neighborhood development organization,
community development corporation, or community-based business
organization not registered with the City but actively operating in areas
that are eligible for the NEZ designation; or
c. Other sponsoring organization or corporation that is adopting a NEZ-
eligible area or has a plan for a NEZ-eligible area.
2. Submission requirements.
a. The applicant shall submit the following:
(1) A plan for the proposed NEZ area which shall include at a minimum
the following information:
(a) Boundaries;
(b) Conditions of the proposed NEZ area;
(c) Strategies to improve the proposed NEZ area, which shall
include any of the following categories: affordable housing,
economic development, social services, education or public
safety; and
(d) Proposed and potential funding sources to implement
strategies; and
(2) Demonstration of community support of the NEZ application in the
form of petitions, letters of support, or public meeting minutes;
(3) History of the proposed NEZ area and the organization; and
(4) By-laws;
(5) If applicable, a copy of its Articles of Incorporation and/or
designation by the Internal Revenue Service as a 501(c)3
organization;
(6) Names, titles, addresses and phone numbers of the members of the
organization's board of directors or governing body;
(7) Organizational structure;
(8) Demonstration of development opportunities in the proposed NEZ
area (e.g., letters of support, news items, reports, etc.); and
(9) A description of the applicant's vision and goals in the proposed
NEZ
b. If the proposed NEZ area has an existing plan adopted or is recognized by
the City Council, the applicant can substitute such plan for the
requirements in Section 2.a. above. Such plan shall include at a
minimum, the following:
(1) Boundaries;
(2) Conditions;
May 16, 2017 2
(3) Strategies to improve the proposed NEZ area;
(4) Proposed and potential funding sources to implement strategies; and
(5) Background information of the applicant.
c. Requirements for NEZs Designated Directly by the City Council. Section
B.2.a. (1)(a) through (d) must be met by NEZs designated directly by the
City Council.
d. Adoption of a NEZ. The City Council shall by resolution, in accordance
with Section 378.003, Chapter 378 of the Texas Local Government
Code and Policy Statement on the Creation of Local Neighborhood
Empowerment Zones (M&C G-12897, April 25, 2000), designate
the NEZ, and by ordinance designate the NEZ as a Reinvestment Zone
in accordance with Section 312.201 of the Property Redevelopment and
Tax Abatement Act.
III. Termination or Boundary Chante Process
A. A NEZ area will be terminated when the value of the property inside the NEZ area is
100% or treater of the value of the property located inside loop 820 and outside the
NEZ area.
B. The boundary of a NEZ area will be evaluated and possibly adjusted if the NEZ
property values are 50% or treater than the value of the properties located inside loop
820 and outside the NEZ area. Any area added to a NEZ must meet the creation
guidelines.
C. Property values in each NEZ area will be reviewed every five years.
4IV.Administration of Neighborhood Empowerment Zones (NEZ)
A. The Neighborhood Services Department shall
monitor NEZ implementation. Specifically, its responsibilities include the following:
1. Certify homeowners, businesses, or developers qualified to receive tax abatement;
2. Coordinate with federal, state, local agencies, or other City departments that
administer NEZ tax abatement and other programs available to NEZ areas;
3. Monitor businesses or developers granted NEZ tax abatement to insure
compliance with terms of agreement.
B. The Planning & Development Department shall coordinate the NEZ application
process.
Specifically, its responsibilities include the following:
May 16, 2017 3
1. Receive and review NEZ applications for certification;
2. Certify homeowners, businesses, or developers qualified to receive development
and impact fee waivers, release of City liens and other incentives; and
3. Track status of development projects and related activities in NEZs.
C. The following basic incentives shall be administered by City departments:
1. Municipal property tax abatement:
Neighborhood Services Department.
2. Development fee waiver: Planning & Development Department (all building
permit related fees including plans review and inspections, plat application fee
including concept plan, preliminary plat, final plat, short form replat, Board of
Adjustment application fee, demolition fee, structure moving fee, zoning
application fee, street and utility easement vacation application fee), Ordinance
Inspection Fees, Urban Forestry Application Fees, Consent/Encroachment
Agreement Application Fees, Transportation and Public Works Department
(Community Facility Agreement application fee) Transportation Impact Fees, and
Sign Fees.
3. Impact fee waiver: Water Department
4. Release of City liens: Code Compliance Department, and Transportation and
Public Works Department (release of paving liens). The Planning &
Development Department will release liens on NEZ basic incentives applicants.
The ii8osiog & Neighborhood Services Department will
release liens on NEZ tax abatement applicants.
Pi=V. Amendment of Administrative Procedures
The City Manager or his designee is authorized to amend the administrative procedures as
needed to achieve the NEZ goals provided that the amendment is within the scope of the NEZ
Policy Statement and in compliance with applicable laws and regulations.
May 16, 2017 4
CITY OF FORT WORTH
POLICYSTATEMENT ON THE CREATION AND ELIMINATION OF
LOCAL NEIGHBORHOOD EMPOWERMENT ZONE (NEZ)
I. GENERAL PURPOSE AND OBJECTIVES
A. A Neighborhood Empowerment Zone(NEZ)must be established for the public purpose
of increasing public health, safety, and welfare of the citizens of Fort Worth in
accordance with Chapter 378 of the Texas Local Government Code ("Statute").
B. NEZs must promote:
1. The creation of affordable 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 in the zone; or
4. The rehabilitation of affordable housing in the zone.
II. CREATION OF A NEIGHBORHOOD EMPOWERMENT ZONE (NEZ)
A. Adoption by the City Council. The City Council shall create a NEZ by adopting a
Resolution that will contain:
1. The determination that the proposed NEZ meets the requirements in I.B. above;
2. A description of the NEZ boundaries;
3. A finding that the creation of the NEZ benefits and is for the public purpose of
increasing the public health, safety and welfare of the people of Fort Worth; and
4. A finding that the creation of the NEZ satisfies the requirements of Sec. 312.202 of
the Tax Code— Criteria for Reinvestment Zone (Attachment A).
B. Local Selection Criteria
In order for a Neighborhood Empowerment Zone to be designated by the City Council,
the proposed Neighborhood Empowerment Zone area must meet the following criteria:
1. In accordance with Chapter 378 of the Texas Local Government Code, the proposed
Neighborhood Empowerment Zone must promote:
a. The creation of affordable housing in the zone;
b. An increase in economic development in the zone;
C. An increase in the quality of social services, education, or public
safety provided to residents in the zone; or
d. The rehabilitation of affordable housing in the zone.
2. A NEZ shall be at least 75% Community Development Block Grant (CDBG)-
eligible_ , as
a. A NEZ should be bounded by clearly defined boundaries (streets, railroads,
creeks or other logical boundaries).
May 16, 2017 1
b. A NEZ may encompass an existing neighborhood or several neighborhoods.
c. The population in a NEZ shall not be more than 6,000 or the NEZ area shall be
no larger than 1.5 square miles at the time of designation.
2. If a proposed NEZ boundary includes an urban village as defined in the 2002
Comprehensive Plan, a logical, defensible area of the urban village as determined by
the City of Fort Worth must be zoned mixed-use. Eligible mixed-use zoning
classifications include: "MU-1" Low Intensity Mixed-Use District, "MU-2" High
Intensity Mixed-Use District, and a compatible "PD" Planned Development District
as defined in the City of Fort Worth Zoning Ordinance.
3. Meet the criteria for a Reinvestment Zone as attached in Exhibit A.
C. Selection Process
1. Based on the requirements and criteria set forth above, City staff will identify areas
eligible for NEZ designation. The City Council may select one or more NEZs from
staff recommendation. Eligible areas may also apply for NEZ designation.
2. Upon determination of one or more NEZs, the City Council shall specify the
incentives for each NEZ based on City staff's recommendation.
3. The City Council may appoint an Advisory Committee for each NEZ to be
composed of representatives from neighborhood groups in the NEZ, non-profit
organizations, foundations, private businesses, educational and faith institutions to
provide advice in the implementation of the NEZ.
III. INCENTIVES
The City Council shall specify the incentives for each NEZ in the resolution creating such
NEZ. The following are the incentives that may be provided in the NEZ:
A. Incentives to be Considered for Each NEZ in Accordance with the Statute:
1. Waive or adopt fees related to the construction or rehabilitation of buildings in the
zone, including fees related to the inspection of buildings and impact fees.
2. Waive of City of Fort Worth liens.
3.
4. Enter into agreements abating municipal property tax on property in the zone for a
period not more than 5 years. . OW
F OF
gi
stt
May 16, 2017 2
oo 3A
B. Other Incentives
The following incentives may also be available on a case by case basis to housing and
economic development projects or businesses, homebuyers or homeowners, or
specified areas within the NEZ qualified for these programs:
1. Homebuyers assistance
2. Gap financing
3. Land assembly
4. Conveyance of tax foreclosure properties
5. Infrastructure improvements
6. Support for Low Income Housing Tax Credit (LIHTC) applications
7. Land use incentives and zoning/building code exemptions, e.g., mixed-use, density
bonus, parking exemption
8. Tax Increment Financing (TIF)
9. Public Improvement District(PID)
10. Tax-Exempt Bond Financing
11. New Model Blocks
12. Loan guarantees
13. Equity Investments
14. Other incentives that will effectuate the intent and purposes of this Policy.
C. Existing Incentives and Funding
If the NEZ or a section thereof overlays with areas designated as state or federal
enterprise zone, Model Blocks, or other special districts, all incentives and funding
available under these districts remain applicable.
D. Additional Criteria for the Woodhaven Neighborhood Empowerment Zone
If a Project is located in the Woodhaven Neighborhood Empowerment Zone, in order
to be considered "eligible" to apply for any incentive available under this Policy, the
Woodhaven Community Development Corporation and the Woodhaven Neighborhood
Association must have submitted a letter of support for the Project to the City of Fort
Worth.
IV. TERMINATION AND BOUNDARY REVISION OF A NEZ
A. A NEZ area will be terminated when the value of the property inside the NEZ area is
100% or greater of the value of the property located inside loop 820 and outside the
NEZ area.
B. The boundary of a NEZ area will be evaluated and possibly adjusted if the NEZ
property values are 50% or greater than the value of the properties located inside loop
820 and outside the NEZ area. Any area added to a NEZ must meet the creation
guidelines.
C. Property values in each NEZ area will be reviewed every five years.
May 16, 2017 3
V. ADMINISTRATION
The City Manager is authorized to develop the administrative and procedural guidelines in
the implementation of this policy.
VI. AMENDMENTS TO THE POLICY
The City Council may amend this policy from time to time to further the purposes and
objectives of the Statute.
Attachment A
Sec. 312.202. Criteria for Reinvestment Zone.
(a) To be designated as a reinvestment zone under this subchapter, an area must:
(1) substantially arrest or impair the sound growth of the municipality creating the zone,
retard the provision of housing accommodations, or constitute an economic or social
liability and be a menace to the public health, safety, morals, or welfare in its present
condition and use because of the presence of:
(A)a substantial number of substandard, slum, deteriorated, or deteriorating structures;
(B) the predominance of defective or inadequate sidewalks or streets;
(C) faulty size, adequacy, accessibility, or usefulness of lots;
(D)unsanitary or unsafe conditions;
(E) the deterioration of site or other improvements;
(F) tax or special assessment delinquency exceeding the fair value of the land;
(G)defective or unusual conditions of title;
(H)conditions that endanger life or property by fire or other cause; or
(I) any combination of these factors;
(2) be predominantly open and, because of obsolete platting, deterioration of structures or
site improvements, or other factors, substantially impair or arrest the sound growth of the
municipality;
(3) be in a federally assisted new community located in a home-rule municipality or in an
area immediately adjacent to a federally assisted new community located in a home-rule
municipality;
(4) be located entirely in an area that meets the requirements for federal assistance under
Section 119 of the Housing and Community Development Act of 1974 (42 U.S.C.
Section 5318);
(5) encompass signs, billboards, or other outdoor advertising structures designated by the
governing body of the municipality for relocation, reconstruction, or removal for the
purpose of enhancing the physical environment of the municipality, which the legislature
declares to be a public purpose; or
(6) be reasonably likely as a result of the designation to contribute to the retention or
expansion of primary employment or to attract major investment in the zone that would
be a benefit to the property and that would contribute to the economic development of the
municipality.
(b)For purposes of this section, a federally assisted new community is a federally assisted area:
May 16, 2017 4
(1)that has received or will receive assistance in the form of loan guarantees under Title X of
the National Housing Act(12 U.S.C. Section 1749aa et seq.); and
(2) a portion of which has received grants under Section 107 of the Housing and
Community Development Act of 1974 (42 U.S.C. Section 5307) made pursuant to the
authority created by that section for grants in behalf of new communities assisted under
Title VII of the Housing and Urban Development Act of 1970 or Title IV of the Housing
and Urban Development Act of 1968 or in behalf of new community projects assisted under
Title X of the National Housing Act (12 U.S.C. Section 1749aa et seq.). Added by Acts
1987, 70th Leg., ch. 191, Sec. 1, eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch.
2, Sec. 14.09(a), eff. Aug. 28, 1989; Acts 1989, 71st Leg., ch. 1106, Sec. 29, eff. Aug. 28,
1989.
May 16, 2017 5
City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 5/16/2017 - Resolution No. 4782-05-2017
DATE: Tuesday, May 16, 2017 REFERENCE NO.: G-19010
LOG NAME: 19NEZPOLICYAMENDAN DRENEW
SUBJECT:
Adopt Resolution Stating the City of Fort Worth Elects to Remain Eligible to Participate in Property Tax
Abatement as Authorized by Chapter 312 of the Texas Tax Code and Establishing an Amended
Neighborhood Empowerment Zone Tax Abatement Policy (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council adopt the attached resolution:
1. Stating that the City elects to remain eligible to participate in property tax abatement, pursuant to the
Texas Property Redevelopment and Tax Abatement Act, Chapter 312 of the Texas Property Tax Code, for
areas located in Neighborhood Empowerment Zones;
2. Adopt amendments to the Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy and Basic
Incentives which includes guidelines and criteria governing property tax abatements in a Neighborhood
Empowerment Zone in the City of Fort Worth, Exhibit A to the Resolution;
3. Adopt amendments to the NEZ Administrative Procedures;
4. Adopt amendments to the NEZ Policy Statement; and
5. Authorize the City Manager to implement NEZ policy amendments.
DISCUSSION:
Chapter 312 of the Texas Property Tax Code authorizes cities to designate Tax Abatement Reinvestment
Zones and to enter into Tax Abatement Agreements only after the City elects to become eligible to
participate in tax abatement and adopts a policy that establishes guidelines and criteria to govern its Tax
Abatement Program. A policy adopted by a city is effective for two years from the date of adoption.
The City's Neighborhood Empowerment Zone (NEZ) Tax Abatement Policy expires on May 19, 2017. If
the proposed Resolution is approved, the new Policy will be effective May 16, 2017 through May 16, 2019
unless amended at an earlier date or repealed by a vote of at least three-fourths of the members of the
City Council, thereby permitting the City to enter into Tax Abatement Agreements, as authorized by the
Texas Tax Code Chapter 312.
On May 9, 2017, the Neighborhood Services Department provided the City Council with a comprehensive
presentation on the Neighborhood Empowerment Zone program. During the presentation, Staff
recommended the termination of the Magnolia Village, Berry/University and Trinity Park Neighborhood
Empowerment Zones and changes to the NEZ Basic Incentives and Tax Abatement Policy.
Logname: 19NEZPOLICYAMENDANDRENEW Page 1 of 3
Staff will come forward with an agenda item in August for the recommended terminations after a sixty day
notice period.
Following are the recommended amendments to the NEZ program.
Amendments to NEZ Tax Abatement Policy and Basic Incentives, the NEZ Administrative
Procedures, and the NEZ Policy Statement:
A. NEZ Policy Amendments
1. Tax Abatements
. Remove Ten Year Abatements from the policy.
. Remove the option to include business personal property in tax abatement.
. Staff will review and evaluate each Multi-Family, Commercial, Industrial and Mixed-Use tax
abatement application before presenting to City Council to determine eligibility with the
following:
. Result in development with no net additional cost to the City while producing a positive economic
impact to the tax paying citizens of Fort Worth.
. Promotion of quality, affordable housing and/or mixed income development.
. Advancement of high quality development or redevelopment opportunities on nearby or adjacent
properties in a manner that supports the establishment of a cohesive, distinctive and walkable
district or neighborhood.
. Effectively leverage private investment.
2. Criteria for NEZ Termination and Boundary Revision
. Termination of NEZ areas with property values 100 percent or greater of the value of the property
outside the NEZ but within the Central City.
. Evaluate and possibly adjust NEZ areas with property values 50 percent or greater of the value of
the property outside the NEZ but within the Central City.
3. Housekeeping Items
. Change Housing and Economic Development to Neighborhood Services in the NEZ Tax Abatement
Policy and Basic Incentives, NEZ Administrative Procedures and the NEZ Policy Statement.
. Clarify language for Abatements in a Tax Increment Finance District.
. Revise language in the NEZ Tax Abatement Policy and Basic Incentives, NEZ Administrative
Procedures and the NEZ Policy Statement to clarify and condense documents.
According to State Law, in order to adopt the attached amendments, seven members of the City Council
must vote in favor of adoption.
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. Any tax abatement approved under the future policy shall be
Logname: 19NEZPOLICYAMENDANDRENEW Page 2 of 3
incorporated into the City's long-term financial forecast.
FUND IDENTIFIERS (FIDs):
TO
Fund Department Account... Project Program!Activity Budget Reference # Amoun41
ID j ID Year _(Cliartfield 2),
FROM
EFundll Department ►ccoun Project Program ctivity Budget Reference # moun
ID I ID Year (Chartfield 2)
CERTIFICATIONS:
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Sarah Odle (7316)
Logname: 19NEZPOLICYAMENDANDRENEW Page 3 of 3