HomeMy WebLinkAboutContract 49075 34 56 78
yro CITY SECRETARY
CONTRACT NO.
�{ AB TE NT AGREEMENT FOR PROPERTY LOCATED IN A NEIGHBORHOOD
a g "a EMPOWERMENT ZONE
® 1GR�S � 4801 West Freeway
L a AX ABATEMENT AGREEMENT("Agreement")is entered into by and between the
C YZ�F FORT WORTH,TEXAS(the"City"),a home rule municipal corporation organized under
the laws of the State of Texas and acting by and through David Cooke,its duly authorized City Manager,
and Rock Life Holdings, L.P., ("Owner") of property located at 4801 West Freeway, Lot 25R, Block
128 Chamberlin Arlington Heights Addition, an addition to the City of Fort Worth, Tarrant County,
Texas according to the Plat recorded in Cabinet A, Slide 10297, of the Plat Records, Tarrant County,
Texas.
The City Council of the City of Fort Worth ("City Council") hereby finds and the City and
Owner hereby agree that the following statements are true and correct and constitute the basis upon
which the City and Owner have entered into this Agreement:
A. Chapter 378 of the Texas Local Government Code allows a municipality to create a
neighborhood empowerment zone if the municipality determines that the creation of the zone would
promote:
(1) the creation of affordable housing, including manufactured housing in the zone;
(2) an increase in economic development in the zone;
(3) an increase in the quality of social services, education, or public safety provided to
residents of the zone; or
(4) the rehabilitation of affordable housing in the zone.
B. Chapter 378 of the Texas Local Government Code provides that a municipality that
creates a neighborhood empowerment zone may enter into agreements abating municipal property
taxes on property in the zone.
C. On July 31, 2001, the City Council adopted basic incentives for property owners who
own property located in a Neighborhood Empowerment Zone, stating that the City elects to be eligible
to participate in tax abatement and including guidelines and criteria governing tax abatement
agreements entered into between the City and various third parties, titled "Neighborhood
Empowerment Zone "NEZ Basic Incentives" ("NEZ Incentives"),these were readopted on May 19,
2015 (Resolution No. 4455).
D. The NEZ Incentives contains appropriate guidelines and criteria governing tax
abatement agreements to be entered into by the City as contemplated by Chapter 312 of the Texas Tax
Code, as amended(the "Code").
E. On April 11, 2017, the City Council adopted Ordinance No. 22671 ("Ordinance")
establishing "Neighborhood Empowerment Reinvestment Zone No. 2," City of Fort Worth, Texas
("Zone")and adopted Resolution No. 4769 establishing"Designation of Como/Sunset Heights Area as
a Neighborhood Empowerment Zone" ("NEZ").
F. Owner owns certain real property located entirely within the
particularly described in Exhibit"1", attached hereto and hereby made a part of thsheee
purposes (the "Premises").
CITY SECRETARY
Page 1 of 13 �IORT,H�TX
Tax Abatement with Rock Life Holdings, L.P., 4801 West re
Approved by M&C C-28182, April 11, 2017
G. Owner or its assigns plan to construct a commercial building for use as Veterinary
Hospital and Clinic,more particularly described in Section 1.1 of this Agreement, on the Premises (the
"Project").
H. On February 14, 2017, Owner submitted an application for tax abatement to the City
concerning the Premises (the"Application"), attached hereto as Exhibit"2"and hereby made a part of
this Agreement for all purposes.
I. The contemplated use of the Premises, the Required Improvements, as defined in
Section 1.1, and the terns of this Agreement are consistent with encouraging development of the Zone
in accordance with the purposes for its creation and are in compliance with the NEZ Incentives, the
Ordinance and other applicable laws, ordinances, rules and regulations.
J. The terms of this Agreement, and the Premises and Required Improvements, satisfy the
eligibility criteria of the NEZ Incentives.
K. Written notice that the City intends to enter into this Agreement has been furnished in
the manner prescribed by the Code to the presiding officers of the governing bodies of each of the taxing
units in which the Premises is located.
NOW, THEREFORE, the City and Owner, for and in consideration of the terms and
conditions set forth herein, do hereby contract, covenant and agree as follows:
1. OWNER'S COVENANTS.
1.1. Real Property Improvements.
Owner shall construct, or cause to be constructed, on and within the Premises certain
improvements consisting of an approximately 24,000 square foot commercial building for use
as a veterinary hospital and clinic and having Construction Costs, excluding land, upon
completion of $5,944,832.00 including site development costs (collectively, the "Required
Improvements") but such Construction Costs shall be reduced by any construction cost
savings. The type, number and details of the Required Improvements are described in Exhibit
"3". After construction of the Required Improvements is complete Owner shall provide a copy
of the final construction invoices to City. The invoices shall then be attached and made a part of
this Agreement and shall be labeled Exhibit "4". Minor variations, and more substantial
variations if approved in writing by both of the parties to this Agreement, in the Required
Improvements from the description provided in Exhibit "3" shall not constitute an Event of
Default, as defined in Section 4.1, provided that the conditions in the first sentence of this
Section 1.1 are met and the Required Improvements are used for the purposes and in the manner
described in Exhibit"3".
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
1.2. Construction Costs.
"Construction Costs" shall mean site development costs (including demolition and
environmental abatement), hard construction costs; contractor fees; engineering fees;
architectural fees; design and consulting fees; and development fee and permitting fees
expended by Owner directly in connection with construction of the Required Improvements.
The City recognizes that Owner will request bids and proposals from various contractors in
order to obtain the lowest reasonable price for the cost of the Required Improvements. In the
event that bids and proposals for the Required Improvements are below $5,944,832.00 in
Construction Costs for work substantially the same as that provided in Exhibit "3" and
otherwise described in this Agreement, the City will meet with Owner to negotiate in good
faith an amendment to this Agreement so that Owner is not in default for its failure to expend
at least $5,944,832.00 in Construction Costs, with the understanding that the City's staff will
recommend, but cannot guarantee, approval of such amendment by the City Council. The
final site plan shall be in substantially the same form as the site plan submitted and attached
as Exhibit "3". Minor variations, and more substantial variations if approved in writing by
both parties to this Agreement, in the Required Improvements from the description provided
in the Application for Tax Abatement shall not constitute an Event of Default, as defined in
Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and
the Required Improvements are used for the purposes and in the manner described in Exhibit
"3"
1.3. Completion Date of Required Improvements.
Owner covenants to complete construction of all of the Required Improvements by April
11, 2019, (the "Completion Deadline"). The abatement will automatically terminate two years
after Council approval if a building permit has not been issued and a foundation has not been
poured. The Required Improvements shall be deemed complete upon the issuance of a final
certificate of occupancy for the Required Improvements by the Planning and Development
Department. If the Owner fails to expend at least Five Million, Nine Hundred Forty Four
Thousand eight Hundred Thirty Two Dollars ($5,944,832.00) in Construction Costs for the
Required Improvements by the Completion Deadline as provided in Section 1.1 of this
agreement;the City shall have the right to terminate this Agreement by providing written notice
to the Owner without further obligation to the Owner hereafter.
1.4. Use of Premises.
Owner covenants that the Required Improvements shall be constructed and the
Premises shall be continuously used as a veterinary hospital and clinic in accordance with the
description of the Project set forth in Exhibit "3". In addition, Owner covenants that
throughout the Term, the Required Improvements shall be operated and maintained for the
purposes set forth in this Agreement and in a manner that is consistent with the general
purposes of encouraging development or redevelopment of the Zone.
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
2. ABATEMENT AMOUNTS, TERMS AND CONDITIONS.
_ Subject to and in accordance with this Agreement, the City hereby grants to Owner real
property tax abatement on the Premises, the Required Improvements, as specifically provided in this
Section 2 ("Abatement"). Abatement of real property taxes only includes City of Fort Worth-
imposed taxes and not taxes from other taxing entities.
2.1. Amount of Abatement.
The actual amount of the Abatement granted under this Agreement shall be based
upon the increase in value of the Required Improvements over their values as determined by
TAD in April 2017, and this amount is $0.00 the year in which this Agreement was entered
into:
One Hundred percent (100%) of the increase in value from the
construction of the Required Improvements.
If the square footage requirement and the appraised value of the Required
Improvements are less than as provided in Section 1.1 of this Agreement, except that such
minimum construction costs shall be reduced by construction cost savings, Owner shall
not be eligible to receive any Abatement under this Agreement.
2.2. Increase in Value.
The abatement shall apply only to taxes on the increase in value of the Premises due
to construction of the Required Improvements and shall not apply to taxes on the land, nor
shall the abatement apply to mineral interests.
2.3. Abatement Limitation.
Notwithstanding anything that may be interpreted to the contrary in this Agreement,
Owner's Abatement in any given year shall be based on the increase in value of the Required
Improvements over its value in April 2017,up to a maximum of$8,917,248.00. In other words,
by way of example only, if the increase in value of the Required Improvements over its value
in April 2017, in a given year is $9,000,000.00, Owner's Abatement for that tax year shall be
capped and calculated as if the appraised value of the Required Improvements for that year had
only been$8,917,248.00.
2.4. Protests Over Appraisals or Assessments.
Owner shall have the right to protest and contest any or all appraisals or assessments
of the Premises and/or improvements thereon.
2.5. Term.
The term of the Abatement(the"Term")shall begin on January 1 of the year following
the calendar year in which a final certificate of occupancy is issued for the Required
Improvements ("Beginning Date") and, unless sooner terminated as herein provided, shall
end on December 31 immediately preceding the fifth(5th) anniversary of the Beginning Date.
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approvedby M&C C-28182, April 11, 2017
2.6. Abatement Application Fee.
The City acknowledges receipt from Owner of the required Abatement application fee
of one half of one percent (.5%) of Project's estimated cost, not to exceed $2,000. The
application fee shall not be credited or refunded to any party for any reason.
3. RECORDS,AUDITS AND EVALUATION OF PROJECT.
3.1. Inspection of Premises.
Between the execution date of this Agreement and the last day of the Term and for five
(5) years after termination ("Compliance Auditing Term"), at any time during normal office
hours throughout the Term and the year following the Term and following reasonable notice to
Owner,the City shall have and Owner shall provide access to the Premises in order for the City
to inspect the Premises and evaluate the Required Improvements to ensure compliance with the
terms and conditions of this Agreement. Owner shall cooperate fully with the City during any
such inspection and/or evaluation.
3.2. Audits.
The City shall have the right to audit at the City's expense the financial and business
records of Owner that relate to the Project and Abatement terms and conditions (collectively,
the "Records") at any time during the Compliance Auditing Term in order to determine
compliance with this Agreement and to calculate the correct percentage of Abatement
available to Owner. Owner shall make all applicable Records available to the City on the
Premises or at another location in the City following reasonable advance notice by the City
and shall otherwise cooperate fully with the City during any audit.
3.3. Provision of Information.
On or before March 1 following the end of every year during the Compliance Auditing
Term and if requested by the City, Owner shall provide information and documentation for
the previous year that addresses Owner's compliance with each of the terms and conditions
of this Agreement for that calendar year. This information shall include, but not be limited
to, the number and dollar amounts of all construction contracts and subcontracts awarded on
the Project.
Failure to provide all information within the control of Owner required by this Section 3.3
shall constitute an Event of Default, as defined in Section 4.1.
3.4. Determination of Compliance.
On or before August 1 of each year during the Compliance Auditing Term, the City
shall make a decision and rule on the actual annual percentage of Abatement available to
Owner for the following year of the Term and shall notify Owner of such decision and ruling.
The actual percentage of the Abatement granted for a given year of the Term is therefore based
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
upon Owner's compliance with the terms and conditions of this Agreement during the
previous year of the Compliance Auditing Term.
4. EVENTS OF DEFAULT.
4.1. Defined.
Unless otherwise specified herein, Owner shall be in default of this Agreement if(i)
Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem
real property taxes with respect to the Premises or the Project, or its ad valorem taxes with
respect to the tangible personal property located on the Premises,become delinquent and Owner
does not timely and properly follow the legal procedures for protest and/or contest of any such
ad valorem real property or tangible personal property taxes or (iii) OWNER DOES NOT
COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCE
OF THE CITY OF FORT WORTH(collectively, each an"Event of Default").
4.2. Notice to Cure.
Subject to Section 5, if the City determines that an Event of Default has occurred, the
City shall provide a written notice to Owner that describes the nature of the Event of Default.
Owner shall have sixty (60) calendar days from the date of receipt of this written notice to fully
cure or have cured the Event of Default. If Owner reasonably believes that Owner will require
additional time to cure the Event of Default, Owner shall promptly notify the City in writing,in
which case (i) after advising the City Council in an open meeting of Owner's efforts and intent
to cure, Owner shall have ninety (90) calendar days from the original date of receipt of the
written notice, or (ii) if Owner reasonably believes that Owner will require more than ninety
(90) days to cure the Event of Default, after advising the City Council in an open meeting of
Owner's efforts and intent to cure, such additional time, if any, as may be offered by the City
Council in its sole discretion.
4.3. Termination for Event of Default and Payment of Liquidated DamaZes.
If an Event of Default, which is defined in Section 4.1, has not been cured within the
time frame specifically allowed under Section 4.2,the City shall have the right to terminate this
Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default
will (i)harm the City's economic development and redevelopment efforts on the Premises and
in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative
oversight and involvement by the City; and(iii)otherwise harm the City,and Owner agrees that
the amounts of actual damages there from are speculative in nature and will be difficult or
impossible to ascertain. Therefore, upon termination of this Agreement for any Event of
Default, Owner shall not be eligible for the Abatement for the remaining Term and Owner shall
pay the City, as liquidated damages, all taxes that were abated in accordance with this
Agreement for each year when an Event of Default existed and which otherwise would have
been paid to the City in the absence of this Agreement. The City and Owner agree that this
amount is a reasonable approximation of actual damages that the City will incur as a result of
an uncured Event of Default and that this Section 4.3 is intended to provide the City with
compensation for actual damages and is not a penalty. This amount may be recovered by the
City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal
district that has jurisdiction over the Premises. Otherwise,this amount shall be due, owing and
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
paid to the City within sixty (60) days following the effective date of termination of this
Agreement. In the event that all or any portion of this amount is not paid to the City within sixty
(60) days following the effective date of termination of this Agreement, Owner shall also be
liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent
taxes, as determined by the Code at the time of the payment of such penalties and interest.
Notwithstanding anything herein to the contrary, damages due under this paragraph shall be the
sole responsibility of Rock Life Holdings, L.P.
4.4. Termination at Will.
If the City and Owner mutually determine that the development or use of the Premises
or the anticipated Required Improvements are no longer appropriate or feasible, or that a
higher or better use is preferable, the City and Owner may terminate this Agreement in a
written format that is signed by both parties. In this event, (i) if the Term has commenced,
the Term shall expire as of the effective date of the termination of this Agreement; (ii) there
shall be no recapture of any taxes previously abated; and (iii) neither parry shall have any
further rights or obligations hereunder.
4.5. Sexually oriented Business & Liquor Stores or Package Stores.
a. Owner understands and agrees the City has the right to terminate this
agreement if the Project contains or will contain a sexually oriented business.
b. Owner understands and agrees that the City has the right to terminate this
agreement as determined in City's sole discretion if the Project contains or will contain a
liquor store or package store.
5. EFFECT OF SALE OF PREMISES.
Owner may assign this Agreement and all or any portion of the benefits provided hereunder
to Rock Life Holdings, L.P., or an Affiliate without the consent of the City,provided that (i)prior to
or contemporaneously with the effectiveness of such assignment, Owner provides the City with
written notice of such assignment, which notice shall include the name of the Affiliate and a contact
name, address and telephone number, and (ii) the Affiliate agrees in writing to assume all terms and
conditions of Owner under this Agreement. For purposes of this Agreement, an"Affiliate"means all
entities, incorporated or otherwise, under common control with Owner, controlled by Owner or
controlling Owner. For purposes of this definition, "control" means fifty percent (50%) or more of
the ownership determined by either value or vote. Owner may not otherwise assign this Agreement
or any of the benefits provided hereunder to another party without the consent of the City Council,
which consent shall not unreasonably be withheld or delayed,provided that(i)the City-Council finds
that the proposed assignee is financially capable of meeting the terms and conditions of this
Agreement and (ii) the proposed assignee agrees in writing to assume all terms and conditions of
Owner under this Agreement. Any attempted assignment without the City Council's prior written
consent shall constitute grounds for termination of this Agreement and the Abatement granted
hereunder following ten(10) calendar days of receipt of written notice from the City to Owner.
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
6. NOTICES.
All written notices called for or required by this Agreement shall be addressed to the following,
or such other party or address as either party designates in writing, by certified mail, postage prepaid,
or by hand delivery:
City: Owner:
City of Fort Worth Rock Life Holdings, L.P.
Attn: City Manager 3201 Hulen Street
200 Texas Street Fort Worth, TX 76107
Fort Worth, TX 76102
and
Neighborhood Services Department
Attn: Director
200 Texas Street
Fort Worth, TX 76102
7. MISCELLANEOUS.
7.1. Bonds.
The Required Improvements will not be financed by tax increment bonds. This
Agreement is subject to rights of holders of outstanding bonds of the City.
7.2. Conflicts of Interest.
Neither the Premises nor any of the Required Improvements covered by this
Agreement are owned or leased by any member of the City Council, any member of the City
Planning or Zoning Commission or any member of the governing body of any taxing units in
the Zone.
7.3. Conflicts Between Documents.
In the event of any conflict between the City's zoning ordinances, or other City
ordinances or regulations, and this Agreement, such ordinances or regulations shall control.
In the event of any conflict between the body of this Agreement and Exhibit"3", the body of
this Agreement shall control. As of April 11, 2017, the City is unaware of any conflicts
between this Agreement and the City's zoning ordinance or other ordinances or regulations.
7.4. Future Application.
A portion or all of the Premises and/or Required Improvements may be eligible for
complete or partial exemption from ad valorem taxes as a result of existing law or future
legislation. This Agreement shall not be construed as evidence that such exemptions do not
apply to the Premises and/or Required Improvements.
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
7.5. City Council Authorization.
This Agreement was authorized by the City Council through approval Mayor and
Council Communication No. C-28182 on April 11,2017,which,among other things,authorized
the City Manager to execute this Agreement on behalf of the City.
7.6. Estoppel Certificate.
Any party hereto may request an estoppel certificate from another party hereto so long
as the certificate is requested in connection with a bona fide business purpose. The certificate,
which if requested will be addressed to the Owner, shall include,but not necessarily be limited
to, statements that this Agreement is in full force and effect without default (or if an Event of
Default exists, the nature of the Event of Default and curative action taken and/or necessary
to effect a cure), the remaining term of this Agreement, the levels and remaining term of the
Abatement in effect, and such other matters reasonably requested by the party or parties to
receive the certificates.
7.7. Owner Standing.
Owner shall be deemed a proper and necessary party in any litigation questioning or
challenging the validity of this Agreement or any of the underlying laws, ordinances,
resolutions, or City Council actions authorizing this Agreement and Owner shall be entitled
to intervene in any such litigation.
7.8. Venue and Jurisdiction.
This Agreement shall be construed in accordance with the laws of the State of Texas
and applicable ordinances, rules, regulations, or policies of the City. Venue for any action
under this Agreement shall lie in the State District Court of Tarrant County, Texas. This
Agreement is performable in Tarrant County, Texas.
7.9. Severability.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be
affected or impaired.
7.10. HeadinLys Not Controlling.
Headings and titles used in this Agreement are for reference purposes only and shall
not be deemed a part of this Agreement.
7.11. Entirety of Agreement.
This Agreement, including any exhibits attached hereto and any documents
incorporated herein by reference, contains the entire understanding and agreement between
the City and Owner,their assigns and successors in interest,as to the matters contained herein.
Any prior or contemporaneous oral or written agreement is hereby declared null and void to
the extent in conflict with any provision of this Agreement. This Agreement shall not be
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
amended unless executed in writing by both parties and approved by the City Council. This
Agreement may be executed in multiple counterparts, each of which shall be considered an
original, but all of which shall constitute one instrument.
(REMAINDER OF PAGE INTENTIONALLY BLANK)
Page 10 of 13
NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
City of Fort Worth
By:
Fernando Costa Steven chkiss, M, President o
Assistant City Manager Hotchkiss Family Real Estate Management, Inc.,
General Partner of Rock Life Holdings, L.P.
. �. r.�
ATTES
By: sir
ary Kas ..
City Secretary XNS
APPROVED AS TO FORM AND LEGALITY:
ByAJv SRamos
Sr. Assistant City Attorney
M & C: C-28182
FOFFICIALRD
RY
TX
Page 11 of 13
NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa,
Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, known to me to
be the person and officer whose name is subscribed to the foregoing instrument, and acknowledged
to me that the same was the act of the said CITY OF FORT WORTH, TEXAS, a municipal
corporation, that he was duly authorized to perform the same by appropriate resolution of the City
Council of the City of Fort Worth and that he executed the same as the act of the said City for the
purposes and consideration therein expressed and in the capacity therein stated.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this 16 day of
"0 2017.
""""" TRIKINYA L JOHNSON
Notary P lic i d for ;.��aY•P�;.,,
the State of Te S %' �` :Notary Public, State of Texas
Comm. Expires 04-17-2018
Notary ID 1238832-0
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared Steven Hotchkiss, DVM,
President of Hotchkiss Family Real Estate Management,Inc.,General Partner of Rock Life Holdings,
L.P., known to me to be the person whose name is subscribed to the foregoing instrument, and
acknowledged to me that he executed the same for the purposes and consideration therein expressed,
in the capacity therein stated for Hotchkiss Family Real Estate Management, Inc., General Partner of
Rock Life Holdings, L.P..r�J �y
IVEN DER MY HAND AND SEAL OF OFFICE this y of
0
i Ilk
� SARAH J. ODLE
RY'4
:'�o�'""•4°':Notary Public.State of texas
Notar lic in an for ,::
The State of Texas v,� :+; Comm.Expires 1 1-05-2019
'e'oF��` Notary ID 6215320
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
Approved by M&C C-28182, April 11, 2017
Exhibit 1: Property Description
Exhibit 2: Application: (NEZ) Incentives and Tax Abatement
Exhibit 3: Project description
Exhibit 4: Final Construction Invoices (to be attached after construction)
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NEZ Tax Abatement with Rock Life Holdings, L.P., 4801 West Freeway
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Page 1 of 2
Official site of the City of Fort Worth,Texas
Cl-ry
L Ff�RT I I
COUNCIL ACTION: Approved on 4/11/2017
DATE: 4/11/2017 REFERENCE NO.: C-28182 LOG NAME: 194801WFRWY
CODE: C TYPE: NON-CONSENT PUBLIC NO
HEARING:
SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Rock Life Holdings,
L.P., for the Construction of a Commercial Building for Use as a Veterinary Hospital and
Clinic Located at 4801 West Freeway in the Como/Sunset Heights Neighborhood
Empowerment Zone (COUNCIL DISTRICT 9)
RECOMMENDATION:
It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement
Agreement with Rock Life Holdings, L.P., for the construction of a commercial building for use as a
veterinary hospital and clinic located at 4801 West Freeway in the Como/Sunset Heights
Neighborhood Empowerment Zone, in accordance with the Neighborhood Empowerment Zone Tax
Abatement Policy and Basic Incentives.
DISCUSSION:
Rock Life Holdings, L.P., (Property Owner) is the owner of the property described as 25R, Block 128,
Chamberlin Arlington Heights Addition, an addition in the City of Fort Worth, Tarrant County,
Texas according to the Plat recorded in Cabinet A, Slide 10297 of the Plat Records, Tarrant County,
Texas at 4801 West Freeway, Fort Worth, Texas. The property is located within the Como/Sunset
Heights Neighborhood Empowerment Zone (NEZ).
The Property Owner plans to invest an estimated amount of$5,944,832.00 to construct an
approximately 24,000 square foot commercial building for use as a veterinary hospital and clinic
(Project). The Neighborhood Services Department reviewed the application and certified that the
Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax
Abatement. The NEZ Basic Incentives includes a five-year Municipal Property Tax Abatement on the
increased value of improvements to the qualified owner of any new construction or rehabilitation
within the NEZ.
Upon execution of the Agreement, the total assessed value of the improvements used for calculating
municipal property tax will be frozen for a period of five years starting January 2018 at the estimated
pre-improvement value as defined by the Tarrant Appraisal District (TAD) in 2017 for the property as
follows:
Pre-Improvement TAD Value of Improvements $ 0.00
Pre-Improvement Estimated Value of Land IF $326,076.00
Total Pre-Improvement Estimated Value IF $326,076.00
The municipal property tax on the improved value of Project after construction is estimated in the
amount of$50,828.00 per year for a total amount of$254,140.00 over the five-year period. However,
this estimate may differ from the actual tax abatement value, which will be calculated based on the
Tarrant Appraisal District appraised value of the property.
04/12/2017
Page 2 of 2
The Tax Abatement Agreement may be assigned to an affiliate of the property owner without the
consent of the City Council. If the property is sold to a new owner, other than an affiliate, the
Agreement may be assigned only with City Council approval and provided that the new owner meets
all of the eligibility criteria as stated in the NEZ Tax Abatement Policy and Basic Incentives.
This property is located in COUNCIL DISTRICT 9, Mapsco 75K.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that approval of the above recommendations will have no material
effect on the Fiscal Year 2017 Budget. While no current year impact is anticipated from this action,
upon approval, reduced revenues will be included in the long-term forecast associated with years
2018 - 2022.
TO
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
FROM
Fund Department Account Project Program Activity Budget Reference# Amount
ID ID Year Chartfield 2
Submitted for City Manager's Office by: Fernando Costa (6122)
Originating Department Head: Aubrey Thagard (8187)
Additional Information Contact: Sarah Odle (7316)
ATTACHMENTS
4801 West Frwy Map for Council.pdf
A1.01 Site Plan.pdf
Form 1295 - 4801 W. Frwy.pdf
Proposed Development.pdf
04/12/2017