HomeMy WebLinkAboutResolution 2721~~
A Resolution
NO ~~~~
DESIGNATING STOP-SIX NEIGHBORHOOD AS A NEIGHBORHOOD
EMPOWERMENT ZONE .AND ADOPTION OF INCENTIVES
WHEREAS, on Apnl 25 2000 the City of Fort Worth Crty Council ("Council ')
approved a Policy Statement on the Creation of Local Neighborhood Empowerment Zone, and
WHEREAS, on October 3 2000 the City Council approved the cntena to deterrmmng
whether an area would be eligible to be designated as a Neighborhood Empowerment Zone; and
WHEREAS, the citizens of Stop-Six Neighborhood requested the Crty Council to
designate the Stop Six Neighborhood as shown on Exhibit A as a Neighborhood
Empowerment Zone, and
WHEREAS, the City Council finds that the creation of a Neighborhood Empowerment
Zone m the Stop-Six Neighborhood would promote (1) the creation or rehabilitation of
affordable housing in the zone, (2) an increase in economic development ~n the zone, and (3) an
increase m the quality of social services, education or public safety provided to the residents of
the zone; and
WHEREAS, the Crty Council finds that the creation of the zone benefits and is for the
public purpose of increasing public health, safety and welfare; and
WHEREAS, the City Council finds that the zone satisfies the requirements of § 312.202
of the Tax,Code.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FORT WORTH, TEXAS THAT
Section 1 The facts and recitations contained in the preamble of this Resolution are hereby
found and declared to be true and correct.
Section 2. The Stop-Six Neighborhood Empowerment Zone ("Stop-Six Zone") is hereby created
as defined by the map shown on Exhibit A
Section 3 The Crty Council adopts the following basic incentives for the Stop-Six
Neighborhood Empowerment .Zone, however in order to qualify for the incentives, the
requirements in the attached document titled `Neighborhood Empowerment Zone Basic
Incentives" must be met:
~i-rY ur- r-ux-r wutt~rta
• 1 Full abatement from municipal ad valorem taxes for ehgible properties for a term of five
years. Basic threshold criteria for determining eligibility include the requirements in
Chapter 312 of the Tax Code and the following:
• Owner occupied existing property Homeowner must own and reside in the property
prior to the date of Neighborhood Empowerment Zone creation. Homeowner must
spend eligible rehabilitation costs on the property after NEZ designation equal to or in
excess of 30% of the base value of the property
• Owner occupied newly constructed or rehabilitated property Homeowner must
purchase and/or rehab the property after the date of final NEZ designation. Eligible
rehabilitation costs on the property shall be equal to or m excess of 30% of the base
value of the property
Multifamily Development Protect: At least twenty percent (20%) of the total amts
shall be affordable to persons with incomes at or below eighty percent (80%) of area
median income based on family size as established and defined by the LT S
Department of Housing and Urban Development and
a) New Construction. A protect must provide for the construction of at least five (5)
residential living units or has a minimum Capital Investment of $200 000• or
b) Rehabilitated Property A protect must have ehgible rehabilitation costs on the
property of at least 30% of the base value of the property Such ehgible
rehabilitation costs must come from the rehabilitation of at least five (5)
residential living units or through a minimum Capital Investment of $200,000
• Commercial/Industrial Development Protect: New Construction. A protect must have
at least a minimum Capital Investment of $75 000 Rehabilitated Property Eligible
rehabilitation costs on the property shall be at least 30% of the base value of the
property or $75 000 whichever is greater
Mixed-Use Development Protects A protect must meet the definition of mixed-use
development as defined by the Comprehensive Plan and the Zoning Ordinance and
a) New Construction. Has a minimum Capital Investment of $200 000• or
b) Rehabilitated Property Eligible rehabilitation costs on the property shall be at
least 30% of the base value of the property or $200 000, whichever is greater
• Base value is the value of the property excluding land, as determined by the Tarrant
County Appraisal Distract, during the year rehabilitation occurs.
2. Full waiver of development fees, including permit, inspection, application, plan review
platting, zoning, community facilities, street vacation, demolition, structure moving, and
Board of Adtustment fees for properties or protects that meet the Neighborhood
Empowerment Zone tax abatement criteria, and
CITY OF FUKT W uK~rri
CITY OF FORT WORTI3
Exhibit A
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Neighborhood Empowerment Zone (NEZ) Basic Incentives
The following incentives shall have a sunset date of ten years from the date the City
Council approves a resolution of final designation for a NEZ
Municipal Property Tax Abatements
A. Existing Residential Properties 5 years full abatement
To be eligible for a tax abatement, an existing residential property in the
NEZ shall meet the following
1 Property is owner-occupied and 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
2 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 (Base value is the value of the property excluding land as
determined by the Tarrant County Appraisal District, during the year
rehabilitation occurs.) and
3 Property is not in atax-delinquent status and has no weed liens when
the abatement application is submitted and
4 Homeowner must enter into a tax abatement agreement with the City
of Fort Worth
B New or Newly-Rehabilitated Residential Properties 5 years full abatement
To be eligible for a tax abatement, a residential property purchased by a
homeowner in the NEZ shall meet the following
1 Property is newly constructed or rehabilitated and purchased after the
date of final NEZ designation and
2 Property is owner-occupied and primary residence of the homeowner
Homeowner shall provide proof of ownership by a warranty deed
affidavit of heirship or a probated will and
3 For rehabilitated property it must be rehabilitated after NEZ
designation Eligible rehabilitation costs on the property shall be equal
to or in excess of 30% of the base value of the property as defined in I
A.2 above The seller shall provide the City information to support
rehabilitation cost; and
4 Property is not in atax-delinquent status and has no weed liens when
the abatement application is submitted and
5 Homeowner must enter into a tax abatement agreement with the City
of Fort Worth
The tax abatement for a residential property can only be granted once for
n
• a term of five years:
owner assumes the
term
If a property granted tax abatement is sold the new
tax abatement on that property for the remaining
C Multifamily Development Projects. 5 years full abatement
To be eligible for a tax abatement, a multifamily development project in
the NEZ shall meet the following
At least twenty percent (20%) of the total units shall be affordable to
persons with incomes at or below eighty percent (80%) of area median
income based on family size as established and defined by the U S
Department of Housing and Urban Development; and
a) For a new construction project, the project must provide at least five
(5) residential living units OR has a minimum capital investment of
$200 000 `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) 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 as defined in I A.2 above 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
D Commercial/Industrial Development Projects 5 years full abatement
To be eligible for a tax abatement, acommercial/industrial development
project in the NEZ shall meet the following
1 For a new construction project, it must have a minimum capital
investment of $75 000 `Capital investment" is defined in I C.2 above
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 as defined in I A.2 above
or $75 000 whichever is greater
E Mixed-Use Development Projects 5 years full abatement
To be eligible for a tax abatement, amixed-use development project in the
NEZ shall meet the following
• 1 Meet the definition of mixed-use development as defined by the
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Comprehensive Plan and the Zoning Ordinance and
a) For a new construction it must have a minimum capital investment of
$200 000 `Capital investment" is defined in I C.2 above 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 as defined in I A.2 above,
or $200 000 whichever is greater
F Standard Requirements for Multifamily Development Projects
Commercial/Industrial Development and Mixed-Use Development
Projects
To be eligible for tax abatement, a multifamily commercial/industrial or
mixed-use development meeting the requirements set forth in Section I C
through E above shall meet the following requirements.
1 Enter into a tax abatement agreement with the City of Fort Worth and
2. Is in conformance with the Comprehensive Plan and
3 The City may require in the tax abatement agreement that the
applicant meet any of the following
• Commit to hire an agreed upon percentage of residents living in
Central City areas and
Commit to hire an agreed upon percentage of residents living in
Fort Worth and
Commit to utilize Fort Worth Companies for an agreed upon
percentage of construction contracts and supply and service
expenses and
Commit to utilize Certified M/WBEs for an agreed upon percentage
of construction contracts and supply and service expenses.
G Application Fee
1 The application fee for individual residential tax abatements (Sections
I A. and I B above) is $25
2. For multifamily commercial industrial and mixed-use development
projects, the application fee is one-half of one percent (0.5%) of the
proposed project's capital investment as defined in I C.2 above, not to
exceed $1 000 The application fee will be refunded upon completion
of construction and final inspection Otherwise the Application Fee
shall not be credited or refunded to any party for any reason
The above municipal tax abatements for the NEZ shall form part of the City's
Tax Abatement Policy Statement for Qualifying Development Projects.
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II Fee Waivers
A.
Development Fees
The following fees are waived in the NEZ for properties or projects that
meet the eligibility criteria in Sections I A, B C D or E above
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B
1 Building permit fee
2 Application fee
3 Inspection fee
4 Plan review fee
5 Platting fee (concept plan
replat, replat)
6 Board of Adjustment fees
7 Demolition fee
8 Structure moving fee
9 CFA application fee
10 Zoning fee
11 Street vacation fee
Impact Fee
preliminary plat, final plat, short form
1 For Residential Projects, impact fees are waived for new single
family and multifamily residential development in the NEZ.
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