Loading...
HomeMy WebLinkAboutResolution 1875;~~ ~/ ~~ A Resolution i WHEREAS, the City of Fort Worth has elected to become eligible to participate 1n tax abatement under Chapter 312 of the Texas Tax Code; and WHEREAS, the City of Fort Worth has established guidelines and criteria for tax abatement to qualified commerdal/industrial projects (the "Policy Statement"), which Policy Statement was adopted on August 1, 1989, amended on June 26, 1990, and amended and restated on October 16, 1990; and WHEREAS, under state Iaw, criteria and guidelines are effective for only two years. 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 amends and restates the Policy Statement for tax abatement to qualified commercial/industrial protects in its entirety as set forth on Exhibit "A," which Exhibit "A" is incorporated herein as 1f copied in its entirety, and is approved. SECTION II. THAT the Policy Statement, as amended and restated herein, shall govern all subsequent tax abatement agreements for commercial/industrial protects. SECTION III. THAT this resolution shall take effect from and after its final date of adoption, and it 1s accordingly so ordered. Adopted by the City Council of the City of Fort Worth, Texas thisday of December, A.D., 1992. ATTEST: City Secretary APPROVED AS TO F~ n , City Attorney Kay Granger Mayor APPROVED CITY COUNCIL. DEC 8 1992 $$ AMENDED G.~.J ~~ City 6ecrmtxxy of the City of fort Biortl4 !seas CITY OF FORT WORTH POLICY STATEMENT TAX ABATEMENT FOR COMMERCIAL/INDUSTRIAL PROJECTS CITY OF FORT WORTH I. Genera:I Purpose and Objectives Certain types of business investment result in the creation of new jobs, new income and provide for positive economic growth and inner-city economic stabilization which is benefidal to the City as a whole. The City Council of the City of Fort Worth has approved this Tax Abatement Policy, which provides the general guidelines for all commerdal/industrial tax abatement projects. This policy will be considered, in accordance with state law, on a case-by-case basis in evaluating mmmerciallindustrial projects for potential tax abatement This polity applies to the owners of real property and it is not the general policy of the City of Fort Worth to approve abatements to landlord or lease holders interest Nothing in the polity shall be construed as an obligation by the City of Fort Worth to approve any tax abatement application. It is the policy of the City of Fort Worth to give priority consideration for projects that (a) are located in the enterprise zones; (b) result in a development with little or no additional rnst to the City; or (c) result in 1,000 or more new jobs. It is further the policy of the City of Fort Worth to encourage the use of disadvantaged business enterprises. (Any final tax abatement contract may include specific goals and objectives relative to disadvantaged business enterprises, utilization of Fort Worth based firms, prospective employment commitments for Fort Worth residents and other specific criteria as maybe negotiated.) II. Definitions "Abatement" means the full .or partial exemption from ad valorem taxes of eligible properties in,a reinvestment zone designated as such by the City of Fort Worth for economic development purposes: >• ; . "Modernization" means the replacement and/or upgrading of existing facilities which increases production, updates technology, or substantially lowers the cost of operation and extends the economic life of the facility. "Reinvestment~Zone" is an area designated as such by the City of Fort Worth in accordance with the Texas Property Redevelopment and Tax Abatement Act, Sections 312.001 through 312.209, Tax Code. ~; -. • .~ -1- .A .-~~., .~ "Fort Worth Company" is one which has a principal office within the dty limits of Fort Worth. "Inner City" is a census tract having at least two of the following four criteria, based on 1990 census data regazding the residents in the census tract • (1) Unemployment rate greater than 1.5 times the state rate. (2) 7A% or more poverty. (3) Low income (703'0 or more of the household have income at or below 80% of the city median). (4) Population loss equal to or greater than 2A% (between 1980 and 1990). A map of the eligible azeas is included as Attachment "A." III. Criteria A. Tax abatement may be granted for a development project, excluding land, which has a minimum capital.investment of one of the following: 1. $10 million if the project is located anywhere in the City of Fort Worth. 2. $500,000 if the~project is located iri the "in`ner dty/~or commits to 1&~'g`~'~"` ~ ~~~~ residents from an eligible "inne%city"~area`foi"full-time, permanent positions. 3. Less than $500,000 if the project is located in the inner-dty azeas having three of the four aiteria listed above under the "inner-dt}~" definition. B. The state law prohibits tax abatement of existing tax base. Abatement can be considered only for the increase in valuation above the existing valuation of a particulaz property and for a maximum term of 10 years. The amount and teens of the abatement will be determined by factors such as the costs to the City, the project's increased valuation to the tax base, and the number and types of new jobs and new or expanding local businesses resulting from the project. C. The "Application for Tax Abatement" form must be completed and submitted ("with an application fee of 13'0 of project cost, fee not to exceed $15,000) to the City Manager outlining the following: 1. project spedfications, •y 2. costs and benefits to the City, 3. employment impact in the City and the region, 4. fiscal impact, 5. community impact, _y i _ ~ 6. projected construction dollars to be spent on the project with a percentage of such dollars that would be awarded to Fort Worth contractors and subcontractors, and G .-~ 7. projected total annual supplier and professional service contracts in terms of dollars, and the projected percentages of each such category that will be awarded to Fort Worth companies and entities, during the abatement period. If construction on the project is begun within a one (1) year period from the date of the application (with or without a tax abatement), this fee shall be credited to any permit, impact, inspection ar .any other GnwfuI fee required by the City of Fort Worth. If fhe project is not ooi:structed, the application fee shall not be refunded or otherwise credifed. D. Improvements subject to tax abatement aze those which will take place after the agreement is executed. N. i°rocedar•al Gufdeiines Any applicant desiring that the City of Fort Worth consider providing tax abatement to encourage location, expansion and/or modernization of operations within the dty limits of Fort Worth shall be required to comply with the following procedural guidelines. Nothing within these guidelines shall imply or suggest that Fort Worth is under any obligation to provide tax abatement in any amount or value to any applicant Preliminary Application Steps A. Applicant must complete a City of Fort Worth "Application For Tax Abatement" and pay an application fee. The application shall include finanaa] and other information deemed appropriate for evaluating the financial capadty and other factors of the applicant. If the applicant is not the owner of the property at the time of application, the property owner's authorization must also be included. B. A complete legal description of the property and tax certificate verifying that no taxes aze past due on the applicant's property shall be provided as part of the application C. _ For an unplatted site, the applicant shall prepare a survey map showing the precise location of the property, all roadways within five hundred (500) feet of :~ the site, all existing land uses and zoning within five hundred (500) feet of the site. _3. ~,- - + ~ D. ,Applicant shall provide a survey, plat or site plan on which is shown the kind, number and location of all proposed improvements. ' E 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. • F. Applicant shall complete all forms and information detailed in items A through E above and submit them to the City Manager, City of Fort Worth, 1000 Throclonorton, Fort Worth, Texas 76102 Application Review Steps G. All information in the application package detailed above will be reviewed for completeness and accuracy. The application may be distributed to the appropriate City departments for internal review and comments. Additional information may be requested. H. Copies of the complete application package and staff comments will be provided to the City Council. The City Manager's Office will make a recommendation as to whether or not it is in the City's (and the other taxing authorities') best interest to offer tax abatement to a pazticulaz applicant. _ Consideration of the Application • I. The City Council will consider the application at meetings conducted pursuant to the Open Meetings Act and the Property Redevelopment and Tax Abatement Act. Additional information may be requested. J. The City Council shall consider calling a public hearing to consider establishment of a reinvestment zone. K The City Council shall hold the public hearing and determine whether the creation of the reinvestment zone meets the economic development objectives of the City and the criteria specified by state law, and if appropriate, adopt an ordinance seating the specific reinvestment zone for tax abatement purposes. Consideration of the Tax Abatement Agreement L. The City Council may consider action which approves the terms and conditions of an agreement between the City and the applicant, and governs the provision • of the tax abatement. At minimum, the agreement shall include the following: 1. General description of the project; 2. Amount of the tax abatement and percent of value to be abated each year, 3. Duration of the abatement; ._ s 4. Type, number, location and timetable of planned improvements; 5. Proposed use of the faality 6. Number of jobs to be created or retained and a percentage of employment in Fort Worth; 7. Any specific terms and conditions to be met by the applicant; and 8. Reporting information. M. Any tax abatement granted a project will become effective on January 1 of the yeaz following the issuance of a Certificate of Occupancy (CO) for the new facilities (unless otherwise specified in the tax abatement agreement). V. Recaptwe If a project is not rnmpleted as specified, or if the tenors of the tax abatement agreement are not met, the City has the right to cancel or amend the abatement agreement and abated taxes shall become due to the City and other affected taxing units as provided by law. If a project granted a tax abatement ceases to operate or is no longer in conformance with the tax abatement agreement, the agreement shall not be in effect for the period of time during which the project is not operating or is not in conformance. VI. Inspection and Ffnanciai Verification The City of Fort Worth reserves the right to review and verify the applicants finandal statements prior to granting a tax abatement and to review the finandal 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 fadlities of the applicant during the term of the abatement and to verify the information provided in the tax abatement agreement. Provisions to this effect shall be incorporated into the agreement. VII. Euaiuation Upon completion of construction of the facilities, the City Manager's designate may annually (or such other times deemed appropriate by the City) evaluate each facility receiving abatement to insure compliance with the agreement and report possible violations of the agreement to all affected taxing units. Any individual or entity receiving a tax abatement from the City of Fort Worth shall provide information in the manner described in the tax abatement agreement including, but not limited to, the following: >, C, J • • .~ .._ .~ (A) The number. of dollaz amounts of all construction contrails and ~,ts. $subcontracts`awarded on the job, specifying which companies aze Fort Worth entities. (To be provided quarterly.) (B) The total number of employees of the company, their total salaries, the number of employees who reside in Fort Worth and their gross salaries. • These jobs shall be reported in job classifications appropriate to the employees. (To be provided annually.) (C) The gross dollars spent on supplier and professional service contracts, broken down to demonstrate the amounts by contract awarded and performed by Fort Worth individuals and entities. (To be provided semi- annually.) (D) The dollaz amount of contracts awazded to Disadvantaged Business Enterprises (DBE). (To be provided annually.) (E) If the dollars or percentages do not equal the original or City Council approved modified projections, the party receiving the abatement shall state the explanation for the failure to meet. the projection, together with recommended nurse of rectification. (It is the polity of the City of Fort Worth that an agreed upon percentage of the employees of companies receiving an abatement shall reside in Fort Worth. At the end of each City fiscal yeaz, the company shall submit a certified list of employees with their addresses to the City Manager's Office. If the percentage is below that agreed upon for the prior yeaz, the abatement maybe lowered for the next yeaz on a pro rata basis. A sepazate calculation shall occur yeazly.) VIII. E,,(fect Of Saie, Assignment Or Lease Of Property No tax abatement rights may be sold, assigned or leased unless otherwise speafied in the tax abatement agreement Any sale, assignment or lease of the property which is not permitted in the tax abatement agreement results in a forfeiture of all tax abatement rights on the property. • ~- a e a r F~ a G aN v+r o, Y Z ° °rn W ".a. ` L ~ q ~ p [ ,[a. ~' [f Ins ~ r { V c- [ S ~ r~ E ~ < c r ~ K r 9 a p «y F r ~ ! t! V [ C r ` a o o s ~. iQ1 Y~ +~ +' e e a 4 . e a n N .Z ~ N a a Z '~ ~~Erc '4 V ° ° R i o n ° ° r W v r 9 _i m ~ ~ = e C9 0= ~4 ~.` ......4 s W aLL °"[ ~ ~ I . a ~~,. `u ~~ 0 s - s .. S s ~ '~ s ~ = `_` g ^..~r ? a ~[ ~ Y S S8 n Q ~. .. ~ A: E 0 g S w ~ ~~ 0 S ` 'P ~ ' ~ E $ ° ~ a""_ s g * ' ~ t^a P s s S~~ ~ ~~~ [i_ E rr- a ~~ 5 S ° d~ § g a s ~ 8 ~- r ~ ffi a s ~ o u g ` ~ s - • ...r9 Y c . a a a.. 44 .Pw ~ r t e aU a i .:' i i i [ S ~ A +r d ~+ p W e °_ a_ C7 ~• NU MU ' e .[ :~ Yo av Y~ ~' +' G w C r[ w v c a c a G iue =s =s ~• 21 p4 y 1Yi [ + I Y a~ 5 O O n~' ~ •• ti e $ S ~~ O g ~~ ~ g S b'. 1 :ate TAX ABATEMENT POLICY III A.2 and III A.3, on page 2 • After the words ~~projec~t locaied in the inner city insert the following: or property adjacent to the major thoroughfazes as identified on Exhibit ~~A~~: Specifically: Mansfield Highway Wichita Felix Hemphill 8th Avenue Henderson • 21st Street Highway 199 Azle Avenue N. Main Decatur Dean Road 28th Street Riverside Dr. . Meadowbrook Dr Miller Ave. Wilbazger Adjacent to Tracts 1061.02, 1046.03 Adjacent to Tracts 1046.02, 1046.03 & 1046.04 Adjacent to Tract 1059.00 Adjacent to Tracts 1045.03, 1045.02 & 1040.00 Adjacent to Tracts 1041.00, 1030.00 & 1029.00 Adjacent to Tracts 1018.00 & 1010.00 Adjacent to Tract 1004.00 Adjacent to Tract 1004.00 Adjacent to Tract 1005.01 Adjacent to Tract 1003.00 Adjacent to Tract 1002.02 Adjacent to Tract 1050.06 Adjacent to Tracts 1050.06, 1002.02 & 1049.00 Adjacent to Tract 1017.00 Adjacent to Tracts 1014.02 & 1014.03 Adjacent to Tracts 1046:02 & 1046.03 Adjacent to Tracts 1062.01 & 1062.02 J., r ~ .~ Camp Bowie Blvd. Montgomery • Vickery Blvd. Adjacent to Tract 1020.00 Adjacent to Tract 1020.00 Adjacent to Tract 1053.00 The criteria of the adjacent census tract shall apply to any application from property abutting the thoroughfazes as listed above.