HomeMy WebLinkAboutContract 22988 CITY SECRETARY 4L t 512
CONTRACT NO.
STATE OF TEXAS § TAX EXEMPTION AGREEMENT
§ BETWEEN THE CITY OF FORT WORTH
COUNTY OF TARRANT § AND BLACKSTONE HOTEL PARTNERS, L.P.
This Tax Exemption Agreement (this "Agreement") is entered into by and between
the City of Fort Worth, Texas (the "City"), duly acting herein by and through its Assistant
City Manager, and Blackstone Hotel Partners, L.P. ("Owner"), a Louisiana limited
partnership whose principal place of business is 210 Baronne Street, Suite 1717, New
Orleans, Louisiana 70112, duly acting herein by and through the Vice President of
Historic Restoration, Inc., its general partner.
WHEREAS, Article 8, Section 1-f of the Texas Constitution and Section 11.24 of
the Texas Tax Code authorize the governing body of a taxing unit to exempt from ad
valorem taxes part or all of the assessed value of a structure and the land necessary for
access to and use of the structure, if the structure is designated by such governing body
as a "historically significant site in need of tax relief to encourage its preservation;" and
WHEREAS, the City Council of the City of Fort Worth, Texas (the "City Council")
has adopted Ordinance No. 11970, which amended Section 2-G of the Comprehensive
Zoning Ordinance of the City of Fort Worth, Ordinance No. 3011, as amended, codified
as Appendix "A" of the Code of the City of Fort Worth, to establish criteria for designation
of historically significant structures and City tax exemptions for such structures; and
WHEREAS, Owner owns Block 96, Lots 1 through 8, Fort Worth Original Town
Addition, Fort Worth, Texas (the "Land"); and
WHEREAS, the Land is the site of the Blackstone Hotel (the "Hotel"), which is
located on Lots 5 through 8, and the Blackstone Hotel Annex (the "Annex"), which is
located on Lots 1 through 4 (the Hotel and the Annex are hereafter referred to as the
"Structure"); and
WHEREAS, the Land and the Structure are hereafter collectively referred to as the
"Premises"; and
WHEREAS, Owner submitted to the City a Partial Tax Exemption Application for
Historically Significant Sites concerning certain contemplated improvements to the
Structure (the "Application for Tax Exemption"), attached hereto and incorporated herein
as Exhibit "A", which has been approved by the Historic and Cultural Landmarks
Commission; and
WHEREAS, the Owner contemplates rehabilitating or renovating the Structure by
making improvements (the "Required Improvements") as set forth in this Agreement; and
WHEREAS, on November 5, 1996, the City Council approved Zoning Docket No.
Z-96-132, to designate the Hotel as "Highly Significant Endangered" and Mayor and
Council Communication No. G-11670, which approved the Application for Tax Exemption
for the Hotel; and
WHEREAS, on November 19, 1996, the City Council approved Zoning Docket No.
Z-96-149, to designate the Annex as "Highly Significant Endangered" and Mayor and
Council Communication No. G-11683, which approved the Application for Tax Exemption
for the Annex; and
WHEREAS, designation of the Structure as "Highly Significant Endangered"
constitutes a finding that the Structure is a historically significant site in need of tax relief
to encourage its preservation;
WHEREAS, the Required Improvements to the Structure, and the other terms of
this Agreement are consistent with the criteria for City tax exemptions contained in
Section 2-G of the Comprehensive Zoning Ordinance;
NOW, THEREFORE, the City and Owner, for and in consideration of the premises
and the mutual promises contained herein, do hereby contract, covenant and agree as
follows:
1.
OWNER'S COVENANTS
A. Owner shall make certain improvements on the Premises ("Required
Improvements") consisting of rehabilitating and renovating the Structure for use as a hotel
facility with street level commercial and retail use and ancillary services, together with a
parking garage. Such improvemgnts shall have a construction cost upon completion of at
least $10,750,000. The kind, number and nature of the Required Improvements are more
particularly described in the Application and shall be constructed in accordance with the
Application.
B. Owner represents that it is the owner of the Premises and holds full legal
and equitable title to the Premises.
C. Owner covenants that the Premises have not received a previous City tax
exemption for a historic building or city tax abatement for a commercial/industrial project
or downtown residential project.
D. Owner covenants that during the term of the Exemption the Premises shall be
continuously used and operated as a hotel facility with street level commercial and retail
use and ancillary services and a parking garage or any other use permitted by the
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applicable zoning ordinances, subject to interruptions due to casualty and similar
occurrences.
E. Owner covenants that:
(1) All Required Improvements and any other improvements to the
Premises (all improvements, including Required Improvements, being referred to
as "Improvements") shall comply with all applicable City building codes and
ordinances, including but not limited to, subdivision, building, electrical, plumbing
and fire prevention codes and ordinances.
(2) All Improvements shall comply with all City codes and ordinances
which are applicable to historic structures, including the Secretary of the Interior's
Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings,
and any design guidelines for the Premises.
(3) Construction of the Improvements will be in accordance with all
applicable federal and state laws and regulations.
II. .
GENERAL PROVISIONS
A. The City Council has enacted Section 2-G of the Comprehensive Zoning
Ordinance of the Fort Worth City Code which establishes criteria and procedures
governing tax exemptions for certain historic property.
B. The procedures followed by the City conform to the requirements of the
Texas Tax Code and Section 2-G of the Comprehensive Zoning Ordinance of the City of
Fort Worth. `
C. In the event of any conflict between the City `s Comprehensive Zoning
ordinance, or other City ordinances or regulations in effect as of the date hereof, and this
Agreement, such ordinances or regulations shall control.
III.
TAX EXEMPTION; TERMS AND CONDITIONS
A. The City hereby grants a tax exemption ("Exemption") to Owner relative to
the Land and the Structure (but not including the value of any personal property,
machinery, inventory, supplies, or other property that is taxed separately from the land
and building), in accordance with Section 2-G of the Comprehensive Zoning Ordinance,
subject to verification of completion of the Required Improvements, in accordance with
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Section 2-G, Subdivision C, subsection 7, a copy of which is attached hereto as Exhibit
«B„
B. Subjection to verification by the City Council of completion of the Required
Improvements, the amount of the Exemption on the Land and the Structure shall be as
follows:
(1) The Structure shall be exempt from City ad valorem taxes
commencing January 1, 1997. This exemption is automatic upon designation of
the Structure as "Highly Significant Endangered" and is not dependent on
construction of the Required Improvements.
(2) Upon verification by the City Council of completion of the Required
Improvements in accordance with Subdivision C, Subsection 7, Owner shall be
exempt from City ad valorem taxes on the assessed value of the rehabilitated
Structure during the term of the Exemption.
(3) Upon verification by the City Council of completion of the Required
Improvements in accordance with Subdivision C, Subsection 7, the value of the
Land for purposes of calculation of City ad valorem taxes during the term of the
Exemption shall be the value determined by the Tarrant Appraisal District as of
December 31, 1995, provided that construction of the Required Improvements is
commenced before January 1, 1997. In the event that construction of the
Required Improvements is commenced in 1997, the value of the Land for
purposes of calculation of City ad valorem taxes during the term of the Exemption
will be the value determined by the Tarrant Appraisal District as of December 31,
1996.
C. In accordance with Section 2-G of the Comprehensive Zoning Ordinance,
the term of the Exemption shall be a minimum of ten years and may be increased to a
maximum of 15 years, as follow: If completion of the Required Improvements on or
before November 19, 1998 (two years after designation as "Highly Significant
Endangered") is verified by the City Council, the term of the Exemption shall be 15 years.
The term of the exemption shall be decreased by one year for each year that completion
is delayed, to a minimum of ten years.
D. The term of the Exemption shall begin on January 1 of the year following
the calendar year in which the City Council verifies completion of the Required
Improvements and the City issues a certificate of occupancy for the Required
Improvements. If the Required Improvements are completed in 1998, as contemplated
by Owner, the term of the Exemption shall commence on January 1, 1999. The term of
the Exemption shall be calculated in accordance with Subsection C above.
E. Owner shall pay City taxes on the appraised value of the Land from the
date this Agreement is entered until the Exemption takes effect. The Structure shall be
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exempt from City taxes until the Exemption takes effect and shall thereafter be exempt
from City taxes during the term of the Exemption. Upon termination of the Exemption,
City taxes on the Land and Structure shall be assessed based on the value determined
by the Tarrant Appraisal District or its successor.
F. Owner shall have the right to protest and contest any or all appraisals or
assessment of the Premises and/or Improvements, or of any tangible personal property
on the Premises
G. It is understood and expressly agreed by Owner that the City does not
warrant or guarantee that the grant of the Exemption as provided for in this Agreement
will be upheld as valid, lawful, enforceable or constitutional in the event the statutory
authority for same or the City's use thereof is challenged by court action. In the event
such court action related to the Agreement and the providing of the Exemption hereunder
is instituted, Owner shall be responsible for defending the parties hereto, this Agreement,
and the Exemption hereunder, at Owner's sole cost and expense, including attorney's
fees. The City, however, agrees to cooperate with Owner in such defense. Should such
litigation result in the loss of the Exemption as provided herein, Owner shall be solely
responsible for the payment of all taxes due, including all taxes which otherwise would
have been paid to the City without the benefit of exemption, without recourse to the City
and without any obligation by the City to reimburse same back to Owner and without any
right of reduction of Owner's obligations hereunder.
IV.
RECORDS, AUDITS AND EVALUATION OF PROJECT
A. The City may annually (or such other times deemed appropriate by the City)
evaluate the project to insure compliance with this Agreement. Owner shall provide
information to the City with respect to the compliance of the project with this Agreement.
B. It shall be the responsibility of Owner, pursuant to V.T.C.A., Tax Code,
Section 11.43, to file an annual exemption application form with the chief appraiser of the
Tarrant Appraisal District.
C. During normal office hours during the construction of the Required
Improvements and the term of the Exemption, provided reasonable notice is given to
Owner, the City shall have access to the Premises by City employees for the purpose of
inspecting the Premises and the Required Improvements to ensure that the Required
Improvements or repairs are made in accordance with the specifications and conditions of
this Agreement, and to verify that the conditions of this Agreement are being complied
with, provided that such inspections shall not interfere with Owner's normal business
operations.
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V.
COMMITMENT TO REPAY TAXES IN EVENT OF BREACH
A. Pursuant to Section 2-G, Subdivision C, Subsections 7D, 8 and 9, a copy of
which is attached hereto as Exhibit "B", Owner hereby agrees to repay all City tax
revenues that were not paid because of the Exemption, plus interest calculated at an
annual rate of ten percent (10%), in the event of occurrence of the following:
(1) Alteration or total or partial destruction of the Structure by willful act
or negligence during the term of the Exemption and failure to take corrective
measures as directed by the City Council, if feasible, pursuant to Subsection 8.A;
or
(2) Noncompliance with the Secretary of the Interior's Standards for
Rehabilitation and Guidelines for Rehabilitating Historic Buildings and design
guidelines for the Structure and failure to take corrective measures, pursuant to
Subsection 9.
B. Such commitment to repay taxes shall run with the Premises and shall bind
Owner, its successors, heirs and assigns. Any unpaid amount shall constitute a lien
against the Premises.
VI.
COVENANT TO RUN WITH LAND
The Agreement and the Exemption run with the Premises and shall automatically
inure to the benefit of all subsequent owners of the Premises.
VII.
NOTICE
All 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:
OWNER:
Blackstone Hotel Partners, L.P.
c/o Mr. A. Thomas Leonard, Jr., Vice President
Historic Resources, Incorporated
210 Baronne Street, Suite 1717
New Orleans, Louisiana 70112
6
CITY:
City Manager
1000 Throckmorton Street
Fort Worth, Texas 76102
VIII.
SEVERABILITY
In the event that any section, subsection, paragraph, sentence, phrase or word is
held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be
enforceable and shall be read as if the parties intended at all times to delete said invalid
section, subsection, paragraph, sentence, phrase or word. In the event that the term of
the Exemption with respect to the Premises is longer than allowed by law, or the
Exemption applies to a broader classification of property than is allowed by law, the
Exemption shall be valid with respect to the classification of property exempted
hereunder, and the portion of the Term, that is allowed by law.
IX.
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 default exists the nature of default and curative action, which should be
undertaken to cure same), the remaining term of this Agreement, the level and remaining
term of the Exemption in effect, and such other matters reasonably requested by the
party(ies) to receive the certificates.
X.
OWNER STANDING
Owner, as a party to this Agreement, shall be deemed a proper and necessary
party in any litigation questioning or challenging the validity of this Agreement or any of
the underlying ordinances or other City Council actions authorizing same and Owner shall
be entitled to intervene in said litigation.
XI.
APPLICABLE LAW AND VENUE
A. This Agreement is made subject to the provisions of the Charter and
ordinances of the City, as amended, and all applicable State and federal laws. However,
if Section 2-G of the Comprehensive Zoning Ordinance or any other city ordinance
concerning tax incentives for historic structures is amended hereafter, such amendment
shall not be applied to deprive Owner of the benefit of its bargain under this Agreement.
B. This Agreement shall be governed by and construed in accordance with the
laws and court decisions of the State of Texas.
C. The obligations of the parties to this Agreement are performable in Tarrant
County, Texas and if legal action is necessary to enforce same, exclusive venue shall be
in Tarrant County, Texas.
XII.
RECORDATION OF AGREEMENT
A certified copy of this Agreement shall be recorded in the Deed Records of
Tarrant County, Texas.
XIII.
AMENDMENT
This Agreement may be modified by the parties hereto to include other provisions
which could have originally been included in this Agreement or to delete provisions that
were not originally necessary to this Agreement. This Agreement can only be amended
by the written agreement of both parties which shall be attached to and made a part
hereof.
XIV.
CAPTIONS
The captions to the various clauses of this Agreement are for informational
purposes only and shall not alter the substance of the terms and conditions of the
Agreement.
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XV.
COUNTERPARTS
This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original and constitute one and the same instrument.
EXECUTED this day of � �» , 1997, by the City.
EXECUTED this 9 114 day of _ �''ii , 1997, by Blackstone
Hotel Partners, L.P.
ATTEST: CITY OF FORT WORTH, TEXAS
r
OM
4CV
By
ty Secretary Assistant City M nager
APPROVED AS TO FORM AND LEGALITY:
Assaf- CityAttorney Contract Authorization
Date: -v�c� `1 d7 Date
ATTEST: BLACKSTONE HOTEL PARTNERS, L.P.
a Louisiana limited partnership,
` Historic Restoration, Incorporated, General
Partnera.
ta'�� 5?
ej,� , I
By:
Vice President
I
l
Contracit Authoriz tion
6
Date
9
STATE OF TEXAS §
COUNTY OF TARRANT §
BEFORE ME, the undersigned authority, on this day personally appeared
f. , Assistant City Manager of the CITY OF FORT
WORTH, a municipal c oration, 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 thiS4�ay of
1997.
®® ;•''Y P�'• Notary Public in for the State of Texas
c ;4QL , .
h Notary's Printed Name
•: �lglE oF�``+� ;' My Commission Expires:
S. � .
EXP%0.- � ;
••••�gNUARV29' •'�
STATE OF TEXAS §
COUNTY OF TARRANT §
.{^ BEFORE ME, the undersigned authority, on this day personally appeared
`
T4M&S LkodptAo J�- , Vice President of Historic Restoration, Inc., which is the
General Partner of BI ckstone 'Hotel Partners, L.P., a Louisiana limited partnership,
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 and as the act and deed of said Trustee.
GIVEN UNDER MY HAND AND SEAL OF OFFICE this jThday of URy ,
1997.
Notary PuttanA for the State of /4,-xRg
L, ovNl�d�A
Notary's Printed Ncaarns
My Commission E)pires:_ ✓011 #"Y D#AA
10
Vl l ib'yb 15:45 FR HH1 504 525 Ji JJC' TO 18178718359-5460 P.02/08
C...'Y OF FORT WORTH,,
v caoRr4 •
° %QPARTIAL TAX EXEMPTION
APPLICATION
�EXt s� HISTORICALLY SIGNMCANT SITES
NarneBlaekstone Hotel Partners, _1..P_�A}tHisrnrle. Regroration. Inc. Its General partner,
Applicant's Mailing Address 210 Bayonne Street. SLi 1717. N • Orleans. Lewisima 70112
Address of Exempt property 601-615 Main Street, Fort Worth, Texas 76102
Legal Description Lots 1-8, Block 96, Original Town of Fort Worth, Texas
Zoning H/HC HSE pending Case No.
Acquisition. Cost 2,100,000
Assessed Value of Structure Approx. $342,121 'Dotal Cost of Project Construction Cost 10,750,000
Projected Construction Time 16 eoliths Projected Completion Date December 1998
Proposed Use of Property Hotel, Commercial Space and Parking Garage
' 'All work on property must have leen issued A Certificate of Appropriateness
CHECKLIST OF REQUIRED INFORMATION FOR EXEMPTION
x Warranty Deed(Proof of Title) (Sent under separate cover)
x_ Proof that Taxes are Current.
x Complete Set of Final Plans for Renovation/Restoration.
Proof of expenditures_ *
x Authorization to Allow City officials to visit and Inspect Property for Certification.
_x— Statement of Agreement for Compliance with Governing Ordinances.
Written Statement Agreeing to Maintain Designated Site Standards.
,x -Sworn Affidavit-Notary Seal
*To be delivered upon completion.
I agree to provide any additional information which is necessary or deemed relevant or usefuL 1
swearlaffirm that the above information is correct and complete to the best of my knowledge and
ability.
Blackstone Hoter_ Partners, L.P.
By: Historic Restoration, Inc.
Its: Genera Part!
Owner/Applicant BY:Tom Leonhard ll:jte filed
Its: Vice President - Development
Staff'Sig>nature Dalc Acceptcd
Exhibit A
Page 1 of 3
OCT 30 ' 96 15 : 46 FR HR1 504 5e5 JJJe TO 18178718359-5460 F .04i08
City of Fort Worth
Partial Tax Exemption Application
STATEMENT OF INTENT
Historic Restoration, Inc. acting as General Partner of Owner ("Owner") acknowledges that the
"historically sigmficant site" located at 601-615 Main Street, Fort Worth, Texas 76102 will be
substantially renovated and/or restored.
Owner agrees to rehabilitate/renovate/restore the site in accordance with 'The Secretary of the
Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic Buildings," the
Building Codes of the City of Fort Worth and the Design Guidelines for this site or district for the
duration of the assessed valuation freeze.
No changes or modifications to the site will be considered without the approval and considerations
of the Commissions,Departments and/or both as prescribed in the applicable processes.
Owner hereby authorizes city officials to visit d inspect the property for certification.
Signature of Property Owner- Tom Leonhard, Date
Vice President, Development
Historic Restoration, Inc.
STATEMENT OF COMPLETION
Historic Restoration,Inc.acting as General Partner of Owner("Owner"),has completed the project
as proposed and acknowledge that the"historically significant site" above has been substantially
rehabilitated/renovated/restored as certified by the Historic and Cultural Landmarks Commission.
Owner agrees to maintain the site in accordance with"The Secretary of the Interior's Standards for
Rehabilitation and Guidelines for Rehabilitating Historic Buildings,"the Building Code of the City
of Fort Worth and the Guidelines for the siteldistrict for the duration of the assessed valuation freeze_
No changes or modifications to the site will be considered without the approval and consideration
of the Commissions, Departments and/or both as prescribed in the applicable processes.
Signature of Property Owner Date
Exhibit A
Page 2 of 3
OCT 30 ' y6 l 5- 46 FR HR 1 504 bc�-5 3y3L IU 1 3 1 eb r 1 dJt5 J-b4bb H . Ub/bpi
State of Louisiana
Parish of Orleans
Before me, a notary public, on this day personally appeared Tom Leonhard, Vice President -
Development,Historic Restoration,Inc., known to me to be the person whose name is subscribed
to foregoing document and, being by me fust duly sworn, declared that the statements therein
contained are true and correct.
Given der my hand and seal of office this 2nd day of October, 1997.
Iles Kabacoff
Notary Public
After filing the application at the Courthouse,please return to:
Carolyn Tames
City of Fort Worth Planning Department
1000 Throckmorton
Fort Worth, Texas 76102
Exhibit A
Page 3 of 3
7. Verification of Completion of Project
A. Submission of Statement by Applicant
Upon completion of a stabilization or rehabilitation project the applicant shall submit the
following documents to the Historic Preservation Officer:
(1) swom Statement of Completion of the Project;
(2) copies of all receipts for cost of project;
(3) documentation that all required inspections of the project have been performed
by the Department of Development;
(4) in the case of stabilization projects, proof that costs are eligible;
(5) in the case of rehabilitation projects, proof that the cost of the rehabilitation
equals or exceeds 30% of the assessed value of the structure prior to rehabili-
tation. Such costs may be determined according to the value of the permits
issued by the City's Building Official through the Department of Development
and/or proof of actual expenditures; and
(6) proof that a Certificate of Occupancy has been issued, if applicable.
B. Verification by Landmarks Commission
The Landmarks Commission, upon receipt of the sworn statement of completion, but no
later than 30 days thereafter, shall make an investigation of the property and shall verify
whether the stabilization or rehabilitation project has been completed. If verification of
completion is unfavorable,the applicant shall be required to complete the project in order
to secure the City ad valorem tax exemption provided herein. If the verification of
completion is favorable,the Commission shall recommend approval of such tax incentive
to the City Council.
C. Approval By City Council and Notification of Taxing Authorities
After verification of satisfactory completion of the stabilization or rehabilitation project,
the City Council shall by ordinance declare the property to be entitled to the City ad
valorem tax relief provided herein. Approval by the City Council of a project for
rehabilitation of a structure designated Historic and Cultural Landmark or located in an
Historic and Cultural Landmarks District shall constitute a finding that the structure is
an historically significant site in need of tax relief in accordance with Section 11.24 of
the Texas Property Tax Code. The Historic Preservation Officer shall give written notice
of approval of the tax incentive to the Chief Appraiser of the Tarrant Appraisal District
and the Tax Assessor-Collector of the City of Fort Worth. Thereafter,the Tax Assessor-
Collector of the City of Fort Worth shall provide the property with the applicable tax
incentive commencing on January 1 of the tax year immediately following the year in
which the work is performed. Nothing in this ordinance relieves the owner from the
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Exhibit B
Page 1 of 3
responsibility to apply to the Tarrant Appraisal District each year for the exemption
pursuant to the terms of the Texas Property Tax Code. The Historic Preservation Officer
shall assist the owner in filing for such exemption, at the request of the owner.
D. Execution of Commitment to RMay
The City Council shall not approve an application for tax incentives until the applicant
files a commitment to repay to the City all City taxes which would have been owed but
for such tax exemption, with interest at an annual rate of ten percent(10%),,in the event
that the owner is required to repay the taxes and interest for noncompliance with this
Subdivision C as provided in Paragraphs 8 and 9. The commitment shall be filed in the
official property records of the county where the property is located, shall run with the
land and shall bind the owner and his heirs and assigns. Any unpaid amount shall
constitute a lien against the property.
8. Alteration or Destruction of Structure or Site
A. Willful or Negligent Alteration or Destruction
In order to maintain eligibility for a tax exemption in accordance with this ordinance,the
owner and his representative shall not alter or totally or partially destroy the historically
significant structure or site by willful act or negligence during the period of the
exemption. In the event that the historically significant structure or site is altered or
totally or partially destroyed by the willful act or negligence of the owner or his
representative, the owner shall notify the Historic Preservation Officer and the Chief
Appraiser of the Tarrant Appraisal District that he is no longer entitled to the exemption.
In addition, if the Landmarks Commission has reason to believe that a structure or site
benefitting from a tax exemption has been altered or totally or partially destroyed by the
willful act or negligence of its owner or his representative during the period of the
exemption, the Commission shall request that the City Manager immediately cause the
matter to be scheduled for the earliest possible consideration by the City Council. If,
after giving notice and a hearing to the owner, the City Council determines that the
structure or site has been totally or partially destroyed or altered by the willful act or
negligence of the owner or his representative, the owner shalt take corrective measures,
if feasible, within the time specified by the City Council. If the owner fails to take such
corrective measures or if corrective measures are not feasible, the owner shall
immediately repay to the City all of the City tax revenues that were not paid because of
the exemption plus interest calculated at an annual rate of ten percent (10%), in
accordance with the terms of the commitment to repay. The City's remedies pursuant
to the commitment to repay shall be in addition to all rights and remedies pursuant to the
Texas Property Tax Code.
B. Alteration or Destruction Other Than By Willful Act or Negligence
Where a structure or site benefitting from a tax exemption described herein is totally or
partly destroyed or altered by other than the willful act or negligence of the owner or his
representative,the owner shall,within 30 days, apply for a Certificate of Appropriateness
25
Exhibit B
Page 2 of 3
to authorize reconstruction of the structure or site in accordance with the Secretary of the
Interior's Standards for Rehabilitation, the construction codes of the City of Fort Worth
and design guidelines. In the event that repair is not feasible, the owner shall, within 30
days, apply for a Certificate of Appropriateness to authorize demolition or relocation.
For good cause shown by the property owner, the Landmarks Commission may extend
the time for filing the application. The determination of whether repair is feasible or
demolition should be allowed shall be made by the Landmarks Commission in accordance
with the Certificate of Appropriateness criteria and procedures set forth in Subdivision
D. In cases where a Certificate of Appropriateness is issued for demolition or relocation
because repair is not feasible, repayment of the tax revenues and interest is not required.
C. Public Safety Hazard
The provisions of Paragraph 8B above shall not limit the authority of the Building
Official or the Superintendent of the Code Enforcement Division to take action pursuant
to Subdivision D, Paragraph 5 concerning structures or property which constitutes a
public safety hazard.
9. Monitoring System
The status of structures or sites benefitting from the tax exemptions described herein shall be
monitored by the Historic Preservation Officer during the period of the exemption to ensure
continued compliance with the Secretary of the Interior's Standards for Rehabilitation and the
design guidelines for such structure. The Historic Preservation Officer shall notify the owner of
violations in writing and shall specify a deadline for correction of such violations. If satisfactory
corrective measures are not undertaken within the time specified by the Historic Preservation
Officer,the Landmarks Commission shall initiate procedures to terminate the City tax exemption
and require payment of the City taxes plus interest calculated at the rate of ten percent (10%)per
year, pursuant to the terms of the commitment to repay.
10. Transferability of Tax Benefits
The benefits of this City ad valorem tax incentive program relating to structures designated
Highly Significant Endangered and Historic and Cultural Landmark and structures located in an
Historic and Cultural Landmarks District are transferable and run with the property.
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Exhibit B
Page 3 of 3
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER LOG NAME PAGE
11/05/96 G-11670 22HOTEL 1 of 2
SUBJECT PARTIAL TAX EXEMPTION FOR THE BLACKSTONE HOTEL LOCATED AT 601 MAIN
STREET
RECOMMENDATION:
The Council will consider designation of the Blackstone Hotel, 601 Main Street, as "Highly
Significant Endangered" at the November 5, 1996 meeting. If the designation is approved, it is
recommended that the City Council approve the owner's application for partial tax exemption for
rehabilitation of the building.
DISCUSSION:
On October 7, 1996, the Historic and.Cultural Landmarks Commission recommended the above
referenced property for designation as Highly Significant Endangered. The Zoning Commission
recommended approval of the designation at its October 16, 1996 meeting. Designation of the
Blackstone Hotel as Highly Significant Endangered is on the Council's November 5, 1996, agenda
for consideration. Blackstone Hotel Partners, L.P., the owner, intends to complete rehabilitation
of the designated building_in June of 1998 at an estimated cost of $12,850,000 and has applied
for partial exemption from City taxes. The Historic and Cultural Landmarks Commission has
approved both the application for partial tax exemption and the Certificate of Appropriateness
for the rehabilitation of this project.
The owner will be eligible for the partial tax exemption if the work is completed in compliance
with the certificate of appropriateness and The Secretary of the Interior's Standards for
Rehabilitation, and the rehabilitation costs equal, or exceed, $57,776 which is the required
expenditure of 30% of the value of the improvements. The owner has submitted supporting
documentation to the Historic and Cultural Landmarks Commission as required under Section 2-G
of the Comprehensive Zoning Ordinance.
Following the rehabilitation of the property, the tax exemption application will return to Council
for verification. If Council approves the tax exemption, the assessed value of the land will be
frozen for up to a fifteen year period at $500,000 and the assessed value of the improvements
will be exempt from City taxes for up to a fifteen year period.
Valuation of the Blackstone Hotel as of December 31 , 1995:
Improvements: $192,589
Land: $500,000
City of Fort Worth, Texas
Mayor and Council Communication
DATE REFERENCE NUMBER I ""'
PAGE
11/05/96 G-11670 22HOTEL 2 of 2
SUBJECT PARTIAL TAX EXEMPTION FOR THE BLACKSTONE HOTEL LOCATED AT 601 MAIN
STREET
The Highly Significant Endangered designation and the application for tax exemption on the
Council's November 5, 1996, agenda apply only to the Blackstone Hotel itself, Block 96, Lots
5-8, Fort Worth Original Town Addition. Designation and tax exemption for the hotel annex
which is located immediately south of the hotel will be considered by the Council on November
19, 1996.
The Blackstone Hotel and the Annex were listed on the National Register of Historic Places in
1984 and were designated a City Historic and Cultural Landmark in 1990.
RG:m
Submitted for City Manager's FUND ACCOUNT CENTER AMOUNT CITY SECRETARY
Office by: (to) 1;
Ramon Guajardo 6140 APPROVED
Originating Department Head: CITY COUNCIL
Emil R. Moncivais 8042 (from) rt Y2
For Additional Information
City Socretary of snn
Contact: C"•ity of Fort Worth,Toxas
Emil R. Moncivais 8042
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