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HomeMy WebLinkAboutResolution 2938A Resolution ~: NO PROVIDING THAT THE CITY OF FORT WORTH ("CITY") ELECTS TO BE ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT AUTHORIZED BY CHAPTER 312 OF THE TEXAS TAX CODE AND ESTABLISHING A 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 is due to expire 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agreements entered into by the City to be effective from April 22 2003 through April 21 2005 unless earlier amended or repealed by a vote of at least three fourths (3/4) of the members of the City Council 3 THAT this Neighborhood Empowerment Zone Tax Abatement Policy as %` it may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 ADOPTED this 22nd day of April, 2003 ~~~~ Mayor APPROVED AS TO FORM AND LEGALITY ATTEST APPROVED C9TY CCUNC~L ~~~ 2~ ZOQ3 ~~ City.~ear®~9 of the ~iay of Fort V4-orth, Texea 1 EXHIBIT A ~'~ CITY OF FORT WORTH .~ NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT POLICY AND BASIC INCENTIVES 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" means the full or partial exemption from City of Fort Worth ad valorem taxes on eligible properties for a period of up to 10 years and an amount of up to 100% of the increase in appraised value (as reflected on the certified tax roll of the appropriate county appraisal district) resulting from improvements begun after the execution of the tax abatement agreement. Eligible properties must be located in the NEZ. `Base Value is the value of the property 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. `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 or personal property (such as machinery equipment, and/or supplies and inventory) Apri122, 2003 1 EXHIBIT A `City of Fort Worth Tax Abatement Policy Statement" means the policy adopted by City Council on February 29 2000 `CommerciaUlndustrial 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 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 certified WBE 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 multi-family residential living units on 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. `Project" means a `Residential Project" `Commercial/Industrial Development Project" "Community Facility Development Project" `Mixed-Use Development Project" or a `Multi-family Development Project. `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 Apri122, 2003 2 EXHIBIT A III. MUNICIPAL PROPERTY TAX ABATEMENTS A. RESIDENTIAL PROPERTIES LOCATED IN A NEZ 1 For residential property purchased before NEZ designation a homeowner shall be eligible to apply for a tax abatement by meeting the following a. Property is owner-occupied and the primary residence of the homeowner prior to the final NEZ designation. 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; and b Property is rehabilitated after NEZ designation and City Council approval of the tax abatement. c. Homeowner must perform Eligible Rehabilitation on the property after NEZ designation equal to or in excess of 30% of the Base Value of the property and d Property is not in atax-delinquent status when the abatement application is submitted. 2. For residential property purchased after NEZ designation, a homeowner shall be eligible to apply for a tax abatement by meeting the following a. Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; b Property 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 property Eligible Rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the property The seller or owner shall provide the City information to support rehabilitation costs; d Property is not in atax-delinquent status when the abatement application is submitted and e Property is in conformance with the City of Fort Worth Zoning Ordinance 3. For investor owned single family property an investor shall be eligible to apply for a tax abatement by meeting the following a. Property is constructed or rehabilitated after NEZ designation and City Council approval of the tax abatement; b For rehabilitated property Eligible Rehabilitation costs on the property shall be equal to or in excess of 30% of the Base Value of the property c. Property is not in atax-delinquent status when the abatement application is submitted and d Property is in conformance with the City of Fort Worth Zoning Ordinance. B. MULTI-FAMILY DEVELOPMENT PROJECTS LOCATED IN A NEZ 1 100% Abatement for 5 vears. If an applicant applies for a tax abatement agreement with a term of five vears or less, this section shall apply. April 22, 2003 3 EXHIBIT A Abatements for multi-family development projects for up to 5 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement upon completion, a newly constructed or rehabilitated multi-family development project in a NEZ must satisfy the following At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U S. Department of Housing and Urban Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below .80% of the median income as defined by the U S Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; and (a) For amulti-family development project constructed after NEZ designation the project must provide at least five (5) residential living units OR have a minimum Capital Investment of $200 000' or (b) For a rehabilitation project, the property must be rehabilitated after NEZ designation.. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property 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 2. 1 %-100% Abatement of City Ad Valorem taxes up to 10 years If an applicant applies for a tax abatement agreement with a term of more than five years, this section shall apply. Abatements for multi-family development projects for up to 10 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 through 5 of the Tax Abatement Agreement Multi-family projects shall be eligible for 100% abatement of City ad valorem taxes for years one through five of the Tax Abatement Agreement upon the satisfaction of the following At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U S Department of Housing and Urban • Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for ' persons at or below 80% of the median income as defined by the U S Apri122, 2003 4 EXHIBIT A Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on a case-by-case basis; and a. For amulti-family development project constructed after NEZ designation, the project must provide at least five (5) residential living units OR have a minimum Capital Investment of $200 000' or b For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property 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 Years 6 through 10 of the Tax Abatement Agreement Multi-family projects shall be eligible fora 1 %-100% abatement of City ad valorem taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following a. At least twenty percent (20%) of the total units constructed or rehabilitated shall be affordable (as defined by the U S. Department of Housing and Urban Development) to persons with incomes at or below eighty percent (80%) of area median income based on family size and such units shall be set aside for persons at or below 80% of the median income as defined by the U S Department of Housing and Urban Development. City Council may waive or reduce the 20% affordability requirement on acase-by-case basis; and • 1 For amulti-family development project constructed after NEZ designation, the project must provide at least five (5) residential living units OR have a minimum Capital Investment of $200 000' or 2. For a rehabilitation project, the property must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property 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 b Any other terms as City Council of the City of Fort Worth deems appropriate, including, but not- limited to: 1 utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3 property inspection 4 commit to hire an agreed upon percentage of Fort Worth residents 5 commit to hire an agreed upon percentage of Central City residents 6 landscaping 7 tenant selection plans; and 8. management plans. C COMMERCIAL, INDUSTRIAL. AND COMMUNITY FACILITIES DEVELOPMENT PROJECTS LOCATED IN A NEZ 1 100% Abatement of City Ad Valorem taxes for 5 nears Apnl 22, 2003 5 EXHIBIT A • If an applicant applies for a tax abatement agreement with a term of five years or less, this section shall apply. 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 Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started In order to be eligible for a property tax abatement, a newly constructed or rehabilitated commercial/industrial and community facilities development project in a NEZ must satisfy the following a A commercial, industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75 000• or b For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property or $75 000 whichever is greater 2. 1 %-100% Abatement of City Ad Valorem taxes up to 10 years If an applicant applies for a tax abatement agreement with a term of more than five years, this section shall apply. Abatements agreements for a Commercial, Industrial and Community Facilities Development projects for up to 10 years are subject to City Council approval. The applicant may apply with the Economic and Community Development Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. Years 1 through 5 of the Tax Abatement Agreement Commercial Industrial and Community Facilities Development projects shall be eligible for 100% abatement of City ad valorem taxes for the first five years of the Tax Abatement Agreement upon the satisfaction of the following a. A commercial industrial or a community facilities development project constructed after NEZ designation must have a .minimum Capital Investment of $75 000• or b For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property or $75 000 whichever is greater Years 6 through 10 of the Tax Abatement Agreement Commercial, Industrial and Community Facilities Development projects shall be • eligible for 1%-100% abatement of City ad valorem taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following' April 22, 2003 6 EXHIBIT A a. A commercial industrial or a community facilities development project constructed after NEZ designation must have a minimum Capital Investment of $75 000 and must meet the requirements of subsection (c) below or b For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property or $75 000 whichever is greater and meet the requirements of subsection (c) below c. Any other terms as City Council of the City of Fort Worth deems appropriate, including but not limited to: 1 utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts, 3 commit to hire an agreed upon percentage of Fort Worth residents, 4 commit to hire an agreed upon percentage of Central City residents; and 5 landscaping. D MIXED-USE DEVELOPMENT PROJECTS LOCATED IN A NEZ 1 100% Abatement of City Ad Valorem taxes for 5 nears If an applicant applies for a tax abatement agreement with a term of five years or less, this section 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 Housing Department for such abatement. The applicant must apply for the tax abatement and be approved by City Council before construction or rehabilitation is started. In order to be eligible for a property tax abatement, upon completion, a newly constructed or rehabilitated mixed-use development project in a NEZ must satisfy the following a.Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b 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 constructed after NEZ designation must have a minimum Capital Investment of $200 000• or (2) For a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property or $200 000 whichever is greater Apri122, 2003 7 EXHIBIT A 2. 1 %-100% Abatement of City Ad Valorem taxes up to 10 years If an applicant applies for a tax abatement agreement with a term of more than five years, this section shall apply. Abatements agreements for a Mixed Use Development projects for up to 10 years are subject to City Council approval. The applicant may apply with the Housing Department for such abatement. The applicant must apply for the tax abatement before construction or rehabilitation is started and the application for the tax abatement must be approved by City Council. Years 1 through 5 of the Tax Abatement Agreement Mixed Use Development projects shall be eligible for 100% abatement of City ad valorem taxes for the first five years of the Tax Abatement Agreement upon the satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b 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 ~~' c. Anew mixed-use development project constructed after NEZ designation must, have a minimum Capital Investment of $200 000' or for a rehabilitation project, it must be rehabilitated after NEZ designation Eligible Rehabilitation costs on the property shall be at least 30% of the Base Value of the property or $200 000 whichever is greater Years 6 through 10 of the Tax Abatement Agreement Mixed Use Development projects shall be eligible for 1 100% abatement of City ad valorem taxes for years six through ten of the Tax Abatement Agreement upon the satisfaction of the following: a. Residential uses in the project constitute 20 percent or more of the total Gross Floor Area of the project; and b 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; c. Anew mixed-use development project constructed after NEZ designation must have a minimum Capital Investment of $200 000' or for a rehabilitation project, it must be rehabilitated after NEZ designation. Eligible Rehabilitation costs on the property shall. be at least 30% of the Base Value of the property or $200 000 whichever is greater and d Any other terms as City Council of the City of Fort Worth deems appropriate including but not limited to: Apri122, 2003 8 EXHIBIT A 1 utilization of Fort Worth companies for an agreed upon percentage of the total costs for construction contracts; 2. utilization of certified minority and women owned business enterprises for an agreed upon percentage of the total costs for construction contracts; 3 property inspection 4 commit to hire an agreed upon percentage of Fort Worth residents 5 commit to hire an agreed upon percentage of Central City residents 6 landscaping 7 tenant selection plans; and 8. management plans. E. ABATEMENT GUIDELINES 1 If a NEZ is located in a Tax Increment Financing District, City Council will determine on a case-by-case basis if the tax abatement incentives in Section III will be offered to eligible Projects. Eligible Projects must meet all eligibility requirements specified in Section III 2. In order to be eligible to apply for a tax abatement, the property owner/developer must: a Not be delinquent in paying property taxes for any property owned by the owner/developer and b 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. 3 Projects to be constructed on property to be purchased under a contract for deed are not eligible for tax abatements. 4 Once a NEZ property owner of a residential property (including multi-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 5 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 of as specified in the agreement. If a property on which tax is being abated is sold the City will assign the tax abatement agreement for the remaining term once the new owner submits an application. 6 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 III B C or D must: a. Satisfy the criteria set forth in Sections III B C or D as applicable and Sections III E.1 E.2; and E3. and Apri122, 2003 9 EXHIBIT A b File an application with the Housing Department, as applicable; and c. 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. 7 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 8 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 and (3) terminate the agreement as determined by City Council sole discretion if the Project contains or will contain a liquor store, package store or a sexually oriented business. 9 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 1st 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 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. 10 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 cancellation of the agreement and recapture of any taxes abated after the date on which an unspecified assignment occurred. F APPLICATION FEE 1 The application fee for residential tax abatements governed under Section III.A is $25 2. 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, not to Apnl 22, 2003 10 EXHIBIT A exceed $1 000 The application fee will be refunded upon issuance of certificate of final occupancy and once the property owner enters into a tax abatement agreement with the City Otherwise, the Application Fee shall not be credited or refunded to any party for any reason IV FEE WAIVERS A. ELIGIBLE RECIPIENTS/PROPERTIES City Council shall determine on a case-by-case basis whether a Project that will contain or contains a liquor store package store or a sexually oriented business is eligible to apply for a fee waiver 2. Projects to be constructed on property to be purchased under a contract for deed are not eligible for development fee waivers. 3 In order for a property owner/developer to be eligible to apply for fee waivers 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 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 be approval of any aspect of the Proiect. Before construction, the applicant must ensure that the Proiect is located in the correct zoning district. B. DEVELOPMENT FEES 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 property on Eligible Rehabilitation costs: 1 All building permit related 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 Apn122, 2003 11 EXHIBIT A Other development related fees not specified above will be considered for approval by City Council on a case-by-case basis. 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. 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 then City Council approval is required Applicant may request the additional amount of impact fee waiver through the Housing Department. V RELEASE OF CITY LIENS . 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 package store or a sexually oriented business is eligible to apply for a fee waiver 2. Projects to be constructed on property to be purchased under a contract for deed are not eligible for any release of City Liens 3 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. fora Project, the property owner/developer a. must submit an application to the City b must not be delinquent in payirig property taxes for any property owned by the owner/developer b 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, c. 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 d 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 apply for release of City liens B WEED LIENS The following are eligible to apply for release of weed liens: Apn122, 2003 12 EXHIBIT A 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. 4 Developers constructing multi-family commercial, industrial, mixed-use or community facility projects. 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 Housing 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 Economic Development Office. The application fee, review evaluation and approval will be governed by City of Fort Worth Tax Abatement Policy . Statement for Qualifying Development Projects B. CERTIFICATIONS FOR APPLICATIONS UNDER SECTIONS III. IV AND V April 22, 2003 13 EXHIBIT A The Housing Department will review the application for accuracy and completeness. Once the Housing Department determines that the application is complete, the Housing 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 III IV and V of this policy as applicable. Once an applicant's eligibility is certified the Housing Department will inform appropriate departments administering the incentives. An orientation meeting with City departments and the applicant may be scheduled The departments include• a. Housing Department: property tax abatement for residential properties and multi- family development projects release. of City liens. b Economic Development Office. property tax abatement for commercial, industrial community facilities or mixed-use development projects c. Development Department: development fee waivers. d Water Department: impact fee waivers e Other appropriate departments, if applicable 2. Once Development Department, Water Department, Economic Development Office, and/or other appropriate department receive a certified application from the Housing Department, each department/office shall fill out a 'Verification of NEZ Incentives for Certified NEZ Incentives Application" and return it to the Housing Department for record keeping and tracking C APPLICATION REVIEW AND EVALUATION FOR APPLICATIONS 1 Property Tax Abatement for Residential Properties 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 For a completed and certified multi-family development project application for more than five years of tax abatement: (1) The Housing Department will evaluate a completed and certified application based on. (a) The project's increase in the value of the tax base (b) Costs to the City (such as infrastructure participation etc.). (c) Percent of construction contracts committed to: (i) Fort Worth based firms, and (ii) Minority and Women Owned Business Enterprises (M/1I1/BEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee. Based upon the outcome of the evaluation Housing Department may present the application to the City Council's Economic Development Committee. Should the Housing Department. present the application to the Economic Development Committee, the Committee will consider the application at an open meeting. The Committee may' Apn122, 2003 14 EXHIBIT A (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee's recommendation to approve the agreement; or (b) Request modifications to the application Housing Department staff will discuss the suggested modifications with the applicant and then if the requested modifications are made resubmit the modified application to the Committee for consideration or (c) Deny the application. The applicant may appeal the Committee s finding by requesting the City Council to• (a) disregard the Committee's finding and (b). instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Council 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. c. Effective Date for Approved Agreements 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 2. Property Tax Abatement for Commercial Industrial Community Facilities and Mixed-Use 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 For a completed and certified application for more than five years of tax abatement: (1) The Economic Development Office will evaluate a completed and certified application based on. (a) The project's increase in the value of the tax base. (b) Costs to the City (such as infrastructure participation etc.). (c) Percent of construction contracts committed to (i) Fort Worth based firms, and (ii) Minority and Women owned Business Enterprises (M/UVBEs). (d) Other items which the City and the applicant may negotiate. (2) Consideration by Council Committee Based upon the outcome of the evaluation, the Economic Development Office may present the application to the City Council's Economic Development Committee. Should the Economic Development Office present the application to the Economic Development Committee, the Committee will consider the application at an open meeting The Committee may Apn122, 2003 15 EXHIBIT A (a) Approve the application. Staff will then incorporate the application into a tax abatement agreement which will be sent to the City Council with the Committee s recommendation to approve the agreement; or (b) Request modifications to the application. Economic Development Office staff will discuss the suggested modifications with the applicant and then, if the requested modifications are made resubmit the modified application to the Committee for consideration or (c) Deny the application. The applicant may appeal the Committee's finding by requesting the City Council to• (a) disregard the Committee's finding and (b) instruct city staff to incorporate the application into a tax abatement agreement for future consideration by the City Council. (3) Consideration by the City Council 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. c. Effective Date for Approved Agreements 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 3 Development Fee Waivers a For certified applications of development fee waivers that do not require Council approval the 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. 4 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 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. 5 Release of City Liens For certified applications of release of City liens,. the Housing Department will release the appropriate liens. Apn122, 2003 16 EXHIBIT A ~~ VII OTHER INCENTIVES A. Plan reviews of proposed development projects in the NEZ will be expedited by the Development Department. B The City Council may add the following incentives to a NEZ in the Resolution adopting the NEZ. 1 Municipal sales tax refund 2. Homebuyers assistance 3 Gap financing 4 Land assembly 5 Conveyance of tax foreclosure properties 6 tnfrastruature improvements 7 Support for Low Income Housing Tax Credit (LIHTC) applications 8 Land use incentives and zoning/building code exemptions, a g. mixed-use, density bonus parking exemption 9 Tax Increment Financing (TIF) 10 Public Improvement District (PID) 11 Tax-exempt bond financing 12. New Model Blocks 13 Loan guarantees 14 Equity investments 15 Other incentives that will effectuate the intent and purposes of NEZ. f Apri122, 2003 17 City of Fort Worth, Texas A O~ And ~Ollncl~ ~ammun~cAt~an ~~ y DATE REFERENCE NUMBER LOG NAME PAGE 4!22/03 **C-19551 05NEZPOLICY 1 of 2 suB~ECT RESOLUTION. STATING THAT THE CITY OF FORT WORTH ELECTS TO BE ELIGIBLE TO PARTICIPATE IN NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT ADOPTION OF A NEZ TAX ABATEMENT POLICY AND AMENDMENT OF THE NEZ BASIC INCENTIVES RECOMMENDATION It is recommended that the City Council Adopt the attached resolution which states that the City elects to be eligible to participate in the Neighborhood Empowerment Zone (NEZ) Tax Abatement authorized by Chapter 312 of the Texas Property Tax Code and 2. Adopt the attached NEZ Tax Abatement Policy as detailed in the NEZ Basic Incentives documents establishing guidelines and criteria governing property tax abatements granted by the City of Fort Worth (see Exhibit A to the Resolution) and 3 Approve an amendment to the NEZ Basic Incentives document that allows City Council to award incentives on a case-by-case basis to liquor stores package stores and sexually oriented businesses. DISCUSSION On April 17 2001 the City adopted a policy to designate Stop Six as a NEZ and offer tax abatements to businesses located in the Stop Six NEZ. 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 current NEZ tax abatement policy expired on April 17 2003 The Economic and Community Development Committee of the City Council during their April 8 2003 meeting recommended the re-adoption of the NEZ Tax Abatment Policy as outlined in the NEZ Basic Incentives Some neighborhoods have raised the concern that the current NEZ policy offers automatically the incentives to all businesses including the ones that a neighborhood may deem undesirable The liquor stores package stores and sexually oriented businesses are of a particular concern After discussing this issue with the Economic and Community Development Committee the committee recommends that the City Council should determine on a case-by-case basis whether or not a liquor store package store or a sexually oriented business should be given the NEZ incentives Exhibit A, the NEZ Basic Incentives is proposed to be amended to require staff to seek City Council approval in awarding NEZ incentives to liquor stores package stores and sexually oriented businesses On April 8 2003 the above proposal was endorsed by the Economic and' Community Development Committee for approval by City Council City of Fort Worth, Texas --i., ~~A1,Cfr And COUnc1~ ~ammun~cAt~an DATE 4/22/03 REFERENCE NUMBER **C-19551 LOG NAME 05NEZPOLICY PAGE 2 of 2 SUBJECT RESOLUTION STATING THAT THE CITY OF FORT WORTH ELECTS TO BE ELIGIBLE TO PARTICIPATE IN NEIGHBORHOOD EMPOWERMENT ZONE (NEZ) TAX ABATEMENT ADOPTION OF A NEZ TAX ABATEMENT POLICY AND AMENDMENT OF THE NEZ BASIC INCENTIVES FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that this action will have no material effect on City funds RR r Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by• (to) Reid Rector 6140 Originating Department Head. ! Jerome Walker 7537 (from) APPROVED 04/22/03 RESOLUTION NO 2938 Additional Information Contact: Jerome Walker 7537