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HomeMy WebLinkAboutResolution 1814~ ~esOla~tion RESOLUTION NO. WHEREAS, the enhancement of the tax base will benefit the citizens of the City of Fort Worth, Texas; and WHEREAS, the eligible voters of the State of Texas approved Art. 8 Section 1-g as an amendment to the Texas Constitution at an election held on the 3rd day of November, 1981, which constitutional amendment authorized the Texas Legislature to enact laws dealing with tax abatement and further authorized the Cities of the State of Texas to participate in such programs as a direct means of assisting in the retention and expansion of primary employment and to help allow major investment to the City which would be a benefit to the property in the City as well as the taxpayers and citizens and that would contribute to the economic development of the City of Fort Worth; and WHEREAS, the enhancement of the local economy is in the best interests of the citizens of Fort Worth; and WHEREAS, the provision of certain economic development incentives may encourage the development of housing in the Central Business District; and WHEREAS, V.T.C.A. Tax Code Chapter 312 Property Redevelopment and Tax Abatement Act allows cities to establish local guidelines and criteria for tax abate- ment agreements which are a prerequisite for designation of reinvestment zones; and WHEREAS, the establishment of specific criteria, guidelines and procedures are necessary to effectively and fairly administer the provision of economic development incentives; and WHEREAS, State Law requires the adoption of criteria and guidelines governing the establishment of tax abatement agreements; CI~'Y OF ff `ORS' i~0>~R'>~ NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION I. THAT the City of Fort Worth hereby establishes a Policy Statement on Tax Abatement to Qualified Residential Projects in the Fort Worth Improvement District #1, attached hereto as Exhibit "A" which Exhibit "A" is incorporated herein as if copied in its entirety and is approved, and which document contains and establishes guidelines, criteria and procedures governing tax abatement agreements for downtown housing. SECTION II. THAT the criteria and guidelines established within the Policy Statement on Tax Abatement to Qualified Residential Projects in the Fort Worth Improvement District #1 shall expressly govern all subsequent tax abatement agreements, as required by State law. SECTION III. THAT this resolution shall take effect from and after its final date of passage, and it is accordingly so ordered. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS, this 31st day of March, A.D., 1992. ATTEST: City Secretary APPROVED AS TO FORM: ~~ City Attorney MAYOR .'. ~ yp~~' ~~g~ ®~f i ~~'P 't's~~V' 4711 . F; ;, t' y w_ ; ~~~ ~~ ~~ '~ t1~ ] ~ f L~~;,~ ~~~ ~ ~~ ~., Csty aecz~etc~xy of thE7i ' ~ , Ciiy of r",azt W on CITY OF FORT N10RT8 EXHIBIT "A" POLICY STATEMENT TAX ABATEMENT FOR l~UALIFYING DOWNTOWN RESIDENTIAL PROJECTS CITY OF FORT WORTH • I. General Purpose and Objectives The City of Fort Worth is committed to the promotion of high quality development in all parts of the City and to an ongoing improvement in the quality of life for its citizens. These objectives are generally served by the enhancement, expansion and diversification of the local economy. As such, the City of Fort Worth will, on a case- by-case basis, give consideration to the granting of tax incentives to qualified residential projects in the Central Business District which result in little or no additional costs to the- City pursuant to Sections 312.201 through 312.209, V.T.C.A., Tax Code, as from time to time amended, as a stimulus to economic growth and diversification in the Central Business District. It is the policy of the City of Fort Worth that said consideration will be provided in accordance with the procedures and criteria outlined in this document. Nothing herein shall imply or suggest that the City of Fort Worth is under any obligation to provide incentives to any applicant. All qualified downtown residential project applicants shall be considered on a case- by-case basis. Qualification is not automatic but is based on criteria and goals of the City. The purpose of this program is to provide an incentive to the growth and develop- ment of downtown housing opportunities. It is the City Council's belief that by the creation of a reinvestment zone in the downtown area, specifically, the Public Improvement District #1, it is reasonably likely that such designation will contribute to the retention or expansion of primary employment or to attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City of Fort Worth. According to the Texas law, Property Redevelopment and Tax Abatement Act, Chapter 312, Vernon's Texas Civil Statutes, the City of Fort Worth may grant tax abatement on the increment in value added to a particular property by a specific development proposal which meets the economic goals and objectives of the City. The tax abatement shall not apply to any portion of the personal property, inventory or existing value of land and improvements of the project. Tax abatement will not be ordinarily considered for projects which would be developed without such incentives unless it can be demonstrated that higher development standards or other develop- went and community goals will be achieved through the use of the abatement. Tax abatements are granted to the owner of improvements on real property. -1- II. Criteria and Guidelines for Tax Abatement Tax abatement applies only to property taxes and not to assessments. A property owner who is granted an exemption on the increased valuation under this program would pay assessments on 100% valuation of his/her property with no abatement of valuation for purposes of any assessments, including those for the public improve- ment district. Any request for tax abatement shall be reviewed by the City Council. Its determination shall be based upon an evaluation of the following criteria and any other relevant information and material, which each applicant will be requested to address. The proposed project must conform to the general guidelines specified below: • The project must make a substantial contribution to development efforts in the City by enhancing either additional development activity or furthering redevelopment and preservation activities within the downtown special assessment district, the Fort Worth Improvement District No. 1. • The project must be appropriately zoned. • The project must conform to accepted architectural and urban design criteria for central business district residential use specifically as set forth in Fort • Worth's "Central Business District Plan" and any other supporting plans adopted by City Council. • The project must enhance property values and complement other land uses in the downtown. A. NEW CONSTRUCTION For new construction, the project must contain a structure(s) which ,when completed, has a total leasable residential area equal to two-thirds or more of the total leasable square footage of the property (excluding parking areas). If at least 75% of the leasable square footage of the first floor at street level consists of retail trade and selected services as shown below as Class I, II and ID and as defined in the Standard Industrial Classification Manual, the percentage of residential may be reduced to 60%. For evaluation of the qualification for the bonus, retail trade and selected services are defined in the following sections of the Standard Industrial Classification Manual: Class I. Division G -Retail Trade a. Major Group 53 -General Merchandise Stores -~ b. Major Group 54 -Food Stores c. Major Group 56 -Apparel and Accessory Stores d. Major Group 57 -Home Furniture, Furnishings, and Equipment Stores e. Major Group 58 -Eating and Drinking Places f. Major Group 59 -Miscellaneous Retail Class II. Division I -Services a. Major Group 72 -Personal Services b. Major Group 78 -Motion Pictures Class III. Division E, Major Group 47, Industry Group 472 - Arrangement of Passenger Transportation B. RENOVATION OF EXISTING STRUCTURES _.. For renovation, the amount of new investment (per building permit value) must be equal to or greater than 50% of the appraised value of the property as shown on the records of the Appraisal District at the time of the tax abatement agreement. When completed, the project must contain a structure which has a total leasable residential area equal to fifty-one (51%) or more of the total leasable square footage of the property (excluding parking). Applications for tax abatement incentives should provide a written narrative detailing how the proposed project relates to the criteria established above and answer the questions listed below. In addressing the following issues, the applicant should indicate the appropriate time games in which the proposed events and/or resulting impacts will occur, where applicable. Additionally, it is understood the responses to these questions will be, out of necessity, estimates only. The applicant should endeavor to provide the most accurate estimates possible based upon available information. The applicant may be requested by the City to describe the methods-logics utilized to respond to the questions and to supply supportive documentation. -3- Proposed Improvements: • Identify and describe the kind, number, location, square footage and cost of all proposed improvements to the property, as well as the land area, and discuss the development schedule of the proposed improvements. • Estimate any costs to the City of Fort Worth which are in addition to those municipal services the City of Fort Worth currently provides to the site of the proposed project. • Identify any infrastructure construction which would be required. Employment Impact: • Specify the number of new jobs to be created at the project site. • Describe the types of jobs at the project site. ' • Specify the total projected annual payroll of the transferred, retained and newly created jobs. Fiscal Impact: • Amount of project's real and personal property value. • Amount of direct sales tax to be generated annually. • Effect of this project on existing businesses and/or office facilities. • Total projected annual operating budget of this facility. Community Impact• • Effect the project will have on the local housing market. • Environmental impact, if any, created by the project. • Compatiblility of the project with the city's comprehensive plan. • Rezoning or platting/replatting which will be required. • Impact on local school districts. • Impact on the county government. • Impact on all other taxing entities. • Impact on the City of Fort Worth. -4- The criteria outlined in this Section will be used by the city staff to determine whether or not to recommend to the City Council that it is in the best interests of the City of Fort Worth and other affected taxing entities that tax abatement be offered to a particular applicant. Specific considerations will include the degree to which the ~. individual project furthers the goals and objectives of 'the community, as well as the relative impact of the project to the community. III. Value of Incentives After following and complying with all statutory and other requirements and after a determination is made that a tax abatement agreement should be entered into with the applicant, tax abatement will be offered for a set period. The value of the abatement shall be all or a part of the increase in the value of the property over its value in the year in which the abatement agreement is executed. For qualifying projects, the abatement period shall be for up to ten (10) years. The abatement shall begin on January 1 of the year following the year in which a certificate of occupancy is issued by the City. In the event that the valuation is increased during the time between the signing of the abatement agreement and the issuance of a certificate of occupancy (construction period), then the taxes on any such increase in valuation can also be abated until the expiration of the abatement period referred to hereinabove. However, in no case can the total term of abatement exceed 10 years. (State law, effective 9/ 1 / 89, limits the total years of abatement to ten years.) If a project is not - J completed and a certificate of occupancy issued within three years of the signing of the abatement agreement, the City has the right to cancel the abatement agreement and abated taxes are immediately due to the City. IV. Procedural Guidelines Any person, organization or corporation desiring that the City of Fort Worth consider providing tax abatement to encourage new housing in downtown Fort Worth shall be required to comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that the City of Fort Worth is under any obligation to provide any abatement to any applicant. Preliminary Application Steps: A. Applicant shall complete an "Application for Tax Abatement" form. B. Applicant shall address all criteria questions outlined in Section II above in narrative format. C. Applicant shall prepare a plat showing the precise location of the property, all roadways within 200 feet of the site and all existing zoning and land uses within 200 feet of the site. -5- D. City may request applicant to provide substantiation of the economic feasibility of the overall project to assist in determining the long-term benefit to the City. E. A complete legal description of the property shall be provided. F. Applicant shall complete all forms and information detailed in items A through E above and submit them to the City Manager, 1000 Throckmorton, Fort Worth, Texas 76102. Application Review Steps: G. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information maybe requested as needed. H. The application will be distributed to the appropriate City departments for internal review and comments. Additional information may be requested as needed. I. Copies of the complete application package and staff comments will be provided to the City Council. Consideration of the Application: J. The City Council will consider the application at meetings conducted pursuant to `` the Open Meetings Act and the Municipal Tax Abatement Act. Additional information may be requested as needed. K. The City Council of Fort Worth shall determine whether the project is feasible and practical, the best use of the site and in the best interests to the municipality after the expiration of the tax abatement agreement. L. The City Council of Fort Worth shall consider approving the terms and conditions of a contract between the City and the applicant governing the provisions of the tax abatement. This contract must include at least the following information: 1. General description of the project; 2. Amount of the tax abatement; 3. Duration of the abatement; 4. Type, number, location and timetable of planned improvements; and 5. Any specific terms and conditions to be met by the applicant. M. The governing bodies of any other cooperating taxing jurisdictions may consider ratification of and participation in the tax abatement agreement between the City of Fort Worth and the applicant. -6- =~.~ Should the terms of the agreement not be satisfied, the tax abatement shall be null and void, and all abated taxes shall immediately be paid to the City of Fort Worth and all other taxing jurisdictions participating in the tax abatement agreement. If a project granted a tax abatement ceases to operate or is converted so that it no longer meets the criteria of this program, the tax abatement agreement becomes void for the ~"~' period of time during which the project is not operating or not qualified. The City of Fort Worth may negotiate with a recipient of a tax abatement to waive the recapture provisions or to terminate the agreement. The City of Fort Worth reserves the right to verify the applicant's credit worthiness prior to granting a tax abatement and to review the financial condition of the project during the term of the abatement. The City of Fort Worth also reserves the right for a representative to inspect the facilities of the applicant during the term of the abatement. Provisions to this effect shall be incorporated into the agreement. ,. • -~-