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HomeMy WebLinkAboutContract 51019 FORT WORTH,,,..) CONTRACT No. ' DECEIVED U 10 2018 MYOF FORT WORTH CITYSECRETARY NEIGHBORHOOD EMPOWERMENT ZONE TAX ABATEMENT AGREEMENT New construction single-family-owner 3058 Ray Simon Drive This TAX ABATEMENT AGREEMENT ("Agreement")is entered into by and between the CITY OF FORT WORTH, TEXAS (the "City"), a home rule municipal corporation organized under the laws of the State of Texas and acting by and through David Cooke, its duly authorized City Manager, in accordance with the authority granted under Chapter 378 of the Texas Local Government Code, and Alanah GB, LLC, owners of property located 3058 Ray Simon Drive,Lot B,Block 10,Karren's Addition,an Addition to the City of Fort Worth, Tarrant County, Texas, according to the revised Plat recorded in Volume 388-46, Page 897, of the Plat Records of Tarrant County, Texas. The City Council of the City of Fort Worth ("City Council") hereby finds and the City and Owner hereby agree that the following statements are true and correct and constitute the basis upon which the City and Owner have entered into this Agreement: A. On November 12, 2013, the Fort Worth City Council adopted Ordinance No. 21034 (Readopted January 26, 2016, Ordinance No. 22071) (the "Ordinance") establishing "Neighborhood Empowerment Reinvestment Zone No. 37," City of Fort Worth, Texas ("Zone") and adopted Resolution No.4260 establishing"Designation of 28th Street/Meacham Area as a Neighborhood Empowerment Zone" ("NEZ"). B. Owner owns certain real property located entirely within the Zone and that is more particularly described in Exhibit"I", attached hereto and hereby made a part of this Agreement for all purposes (the "Premises"). C. Owner or its assigns plan to construct the Required Improvements, as defined in Section 1.1 of this Agreement,on the Premises(the"Project"). D. On February 12, 2018, Owner submitted an application for tax abatement to the City concerning the Premises (the"Application"), attached hereto as Exhibit"2" and hereby made a part of this Agreement for all purposes. E. The contemplated use of the Premises, the Required Improvements and the terms of this Agreement are consistent with encouraging development of the Zone in accordance with the purposes for its creation and are in compliance with the NEZ Incentives,the Ordinance and other applicable laws,ordinances, rules and regulations. F. Written notice that the City intends to enter into this Agreement, along with a copy of this Agreement,has been furnished in the manner prescribed by the Code to the pre ' cers o t e g verning Page 1 OFFICIAL RECORD NEZ Tax Abatement Agreement-Alanah GB,LLC CI'T'Y a 4R rMy 3058 Ray Simon Drive ��WOWH9 TX M&C C-28759 ADDroved:June 26.2018 bodies of each of the taxing units in which the Premises is located. NOW, THEREFORE,the City and Owner, for and in consideration of the terms and conditions set forth herein, do hereby contract, covenant and agree as follows: 1. OWNER'S COVENANTS. 1.1. Real Property Improvements. Owner shall construct, or cause to be constructed, on and within the Premises certain improvements consisting of a single-family residence, of approximately 1,959 square feet in size and built to the specifications listed in Exhibit "3", (collectively the "Required Improvements"). Owner shall provide a survey of the home upon completion of the Required Improvements. The parties agree that the final survey shall be a part of this Agreement and shall•be labeled Exhibit "4". Minor variations and more substantial variations if approved in writing by both parties to this Agreement before construction is undertaken in the Required Improvements from the description provided in the Application for Tax Abatement shall not constitute an Event of Default, as defined in Section 4.1, provided that the conditions in the first sentence of this Section 1.1 are met and the Required Improvements are used for the purposes and in the manner described in Section 1.3. 1.2. Completion Date of Required Improvements. Owner certifies that the Required Improvements will be completed within two years from the date of Council approval.The abatement will automatically terminate two years after Council approval if a building permit has not been pulled and a foundation has not been poured,unless delayed because of force majeure,in which case the two years shall be extended by the number of days comprising the specific force majeure. For purposes of this Agreement, force majeure shall mean an event beyond Owner's reasonable control as determined by the City of Fort Worth in its sole discretion,which shall not be unreasonably withheld,including,without limitation,delays caused by adverse weather,delays in receipt of any required permits or approvals from any governmental authority, acts of God,or fires. Force majeure shall not include construction delays caused due to purely financial matters, such as, without limitation, delays in the obtaining of adequate financing. 1.3. Use of Premises. Owner covenants that the Required Improvements shall be constructed and continuously used as a secondary residence of the Home Owner in accordance with the NEZ Incentives. In addition,Owner covenants that throughout the Term,the Required Improvements shall be maintained for the purposes set forth in this Agreement. 2. ABATEMENT AMOUNTS,TERMS AND CONDITIONS. Subject to and in accordance with this Agreement, the City hereby grants to Owner a real property tax abatement of City of Fort Worth-imposed taxes on the Premises for the Required Improvements, as specifically provided in this Section 2 ("Abatement"). Abatement does not include taxes from other taxing entities. Page 2 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 Anoroved:June 26.2018 2.1. Amount of Abatement. The actual amount of the Abatement granted under this Agreement shall be based upon the increase in value of the Premises due to the Required Improvements, over its value as determined by Tarrant Appraisal District in May 2018, and this amount is $0.00. If the square footage requirement of the Required Improvements are less than as provided in Section 1.1 of this Agreement, Owner shall not be eligible to receive any Abatement under this Agreement. 2.2 Increase in Value. The Abatement shall be 100% of the increase in value from the construction of the Required Improvements and shall apply only to taxes on the increase in value of the Premises due to construction of the Required Improvements. The Abatement shall not apply to taxes on the land,nor shall the abatement apply to mineral interests. 2.3. Term of Abatement. The term of the Abatement ("Term") shall begin on January 1 of the year following the calendar year in which the Required Improvement is completed ('Beginning Date") and, unless sooner terminated as herein provided, shall end on December 31 immediately preceding the fifth (5ffi) anniversary of the Beginning Date. 2.4 Protests Over Appraisals or Assessments. Owner shall have the right to protest and contest any or all appraisals or assessments of the Premises and/or improvements thereon. 2.5. Abatement Application Fee. The City acknowledges receipt from Owner of the required Application fee of$100.00. The application fee shall not be credited or refunded to Owner or its assigns for any reason. 3. RECORDS,AUDITS AND EVALUATION OF REQUIRED IMPROVEMENTS. 3.1. Inspection of Premises. Between the execution date of this Agreement and the last day of the Term, at any time during normal office hours throughout the Term and the year following the Term and following reasonable notice to Owner, the City shall have and Owner shall provide access to the Premises in order for the City to inspect the Premises and evaluate the Required Improvements to ensure compliance with the terms and conditions of this Agreement. Owner shall cooperate fully with the City during any such inspection and/or evaluation. Page 3 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 Annroved:June 26.2018 3.2. Certification. Owner shall certify annually to the City that it is in compliance with each applicable term of this Agreement.The City shall have the right to audit at the City's expense the Required Improvement with respects to the specifications listed in Exhibit "3". Owner must provide documentation that Owner is using the Required Improvements as its secondary residence (collectively, the "Records") at any time during the Compliance Auditing Term in order to determine compliance with this Agreement. Owner shall make all applicable Records available to the City on the Premises or at another location in the City following reasonable advance notice by the City and shall otherwise cooperate fully with the City during any audit. 3.3 Provision of Information. On or before March 1 following the end of every year during the Compliance Auditing Term and at any other time if requested by the City, Owner shall provide information and documentation for the previous year that addresses Owner's compliance with each of the terms and conditions of this Agreement for that calendar year. Failure to provide all information within the control of Owner required by this Section 3.3 shall constitute an Event of Default,as defined in Section 4.1. 3.4 Determination of Compliance. On or before August I of each year during the Compliance Auditing Term,the City shall make a decision and rule on the actual annual percentage of Abatement available to Owner for the following year of the Term and shall notify Owner of such decision and ruling. The actual percentage of the Abatement granted for a given year of the Term is therefore based upon Owner's compliance with the terms and conditions of this Agreement during the previous year of the Compliance Auditing Term. 4. EVENTS OF DEFAULT. 4.1. Defined. Unless otherwise specified herein, Owner shall be in default of this Agreement if(i) Owner fails to construct the Required Improvements as defined in Section 1.1.; (ii) ad valorem real property taxes with respect to the Premises or the Required Improvements, or its ad valorem taxes with respect to the tangible personal property located on the Premises, become delinquent and Owner does not timely and properly follow the legal procedures for protest and/or contest of any such ad valorem real property or tangible personal property taxes; (iii)OWNER DOES NOT USE THE PREMISES AS SECONDARY RESIDENCE ONCE THE ABATEMENT BEGINS; or (iv) OWNER DOES NOT COMPLY WITH CHAPTER 7 AND APPENDIX B OF THE CODE OF ORDINANCES OF THE CITY OF FORT WORTH (collectively, each an "Event of Default"). 4.2. Notice to Cure. Subject to Section 5, if the City determines that an Event of Default has occurred, the City shall provide a written notice to Owner that describes the nature of the Event of Default. Owner shall have sixty(60)calendar days from the date of receipt of this written notice to fully cure or have cured the Event of Default. If Owner reasonably believes that Owner will require additional time to cure Page 4 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 ADDroved:June 26.2018 the Event of Default, Owner shall promptly notify the City in writing, in which case (i) after advising the City Council in an open meeting of Owner's efforts and intent to cure, Owner shall have ninety (90) calendar days from the original date of receipt of the written notice, or (ii) if Owner reasonably believes that Owner will require more than ninety(90)days to cure the Event of Default,after advising the City Council in an open meeting of Owner's efforts and intent to cure,such additional time,if any, as may be offered by the City Council in its sole discretion. 4.3. Termination for Event of Default and Payment of Liquidated Damages. If an Event of Default which is defined in Section 4.1 has not been cured within the time frame specifically allowed under Section 4.2, the City shall have the right to terminate this Agreement immediately. Owner acknowledges and agrees that an uncured Event of Default will (i) harm the City's economic development and redevelopment efforts on the Premises and in the vicinity of the Premises; (ii) require unplanned and expensive additional administrative oversight and involvement by the City; and(iii) otherwise harm the City, and Owner agrees that the amounts of actual damages therefrom are speculative in nature and will be difficult or impossible to ascertain. Therefore, upon termination of this Agreement for any Event of Default, Owner shall pay the City, as liquidated damages; all taxes that were abated in accordance with this Agreement for each year when an Event of Default existed and which otherwise would have been paid to the City in the absence of this Agreement. The City and Owner agree that this amount is a reasonable approximation of actual damages that the City will incur as a result of an uncured Event of Default and that this Section 4.3 is intended to provide the City with compensation for actual damages and is not a penalty. This amount may be recovered by the City through adjustments made to Owner's ad valorem property tax appraisal by the appraisal district that has jurisdiction over the Premises. Otherwise, this amount shall be due, owing and paid to the City within sixty (60) days following the effective date of termination of this Agreement. In the event that all or any portion of this amount is not paid to the City within sixty(60) days following the effective date of termination of this Agreement, Owner shall also be liable for all penalties and interest on any outstanding amount at the statutory rate for delinquent taxes, as determined by the Code at the time of the payment of such penalties and interest (currently, Section 33.01 of the Code). 4.4. Termination at Will. If the City and Owner mutually determine that the development or use of the Premises or the anticipated Required Improvements are no longer appropriate or feasible,or that a higher or better use is preferable,the City and Owner may terminate this Agreement in a written format that is signed by both parties. In this event, (i) if the Term has commenced, the Tenn shall expire as of the effective date of the termination of this Agreement; (ii) there shall be no recapture of any taxes previously abated; and(iii)neither party shall have any further rights or obligations hereunder. 4.5 Sexually oriented business & Liauor Stores or Package Stores. a. Owner understands and agrees that the City has the right to terminate this agreement if the Required Improvements contains or will contain a sexually oriented business. b. Owner understands and agrees that the City has the right to terminate this agreement as determined in City's sole discretion if the Required Improvements contains or will contain a liquor store or package store. Page 5 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 Annroved:June 26.2018 5. EFFECT OF SALE OF PREMISES. Except for an assignment to Owner's first mortgagee or to a homebuyer who will use the Required Improvements as its secondary residence or the homeowner's mortgagee which City Council hereby agrees to, the Abatement granted hereunder shall vest only in Owner; however if Owner sells the Premises and Required Improvements, this Abatement cannot be assigned to a new owner of all or any portion of the Premises and/or Required Improvements without the prior consent of the City Council, which consent shall not be unreasonably withheld provided that(i)the City Council finds that the proposed assignee is financially capable of meeting the terms and conditions of this Agreement and (ii) the proposed purchaser agrees in writing to assume all terms and conditions of Owner under this Agreement. Owner may not otherwise assign, lease or convey any of its rights under this Agreement. Any attempted assignment without the City Council's prior consent shall constitute grounds for termination of this Agreement and the Abatement granted hereunder following ten(10)calendar days of receipt of written notice from the City to Owner. Upon assignment to Owner's first mortgagee, or to a homebuyer who will use the Required Improvements as its secondary residence or the homeowner's mortgagee,Owner shall have no further obligations or duties under this Agreement. In addition, upon assignment to any other entity with the written consent of City Council,Owner shall have no further duty or obligation under this Agreement. IN NO EVENT SHALL THE TERM OF THIS AGREEMENT BE EXTENDED IN THE EVENT OF A SALE OR ASSIGNMENT. THE FAILURE OF OWNER TO SEND THE CITY NOTIFICATION OF THE SALE OF THE REQUIRED IMPROVEMENTS AND EXECUTION OF THE ASSIGNMENT OF THIS AGREEMENT WITH THE NEW OWNER WITHIN 30 DAYS OF THE TRANSFER OF OWNERSHIP OF THE REQUIRED IMPROVEMENTS SHALL RESULT IN THE AUTOMATIC TERMINATION OF THIS AGREEMENT. THE NOTICE AND EXECUTED ASSIGNMENT MUST BE SENT TO THE CITY BY CERTIFIED MAIL OR BY HAND DELIVERY. 6. NOTICES. All written 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: City: Owner: City of Fort Worth Alanah GB, LLC Attn: City Manager 1009 Plantation Drive 200 Texas Street Desoto, Texas 75115 Fort Worth,Texas 76102 and Neighborhood Services Department Attn: Director 200 Texas Street Fort Worth, Texas 76102 Page 6 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 Anmroved:June 26.2018 7. MISCELLANEOUS. 7.1. Bonds The Required Improvements will not be financed by tax increment bonds. This Agreement is subject to the rights of holders of outstanding bonds of the City. 7.2. Conflicts of Interest. Neither the Premises nor any of the Required Improvements covered by this Agreement are owned or leased by any member of the City Council, any member of the City Planning or Zoning Commission or any member of the governing body of any taxing units in the Zone. 7.3. Conflicts Between Documents. In the event of any conflict between the City's zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. In the event of any conflict between the body ofthis Agreement and Exhibit"3",the body of this Agreement shall control. 7.4. Future Application. A portion or all of the Premises and/or Required Improvements may be eligible for complete or partial exemption from ad valorem taxes as a result of existing law or future legislation. This Agreement shall not be construed as evidence that such exemptions do not apply to the Premises and/or Required Improvements. 7.5. City Council Authorization. This Agreement was authorized by the City Council through approval of Mayor and Council Communication No. C-28759 on June 26, 2018, which, among other things, authorized the City Manager to execute this Agreement on behalf of the City. 7.6. 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, if requested, will be addressed to the Owner, and shall include, but not necessarily be limited to, statements that this Agreement is in full force and effect without default (or if an Event of Default exists,the nature of the Event of Default and curative action taken and/or necessary to effect a cure),the remaining term of this Agreement, the levels and remaining term of the Abatement in effect, and such other matters reasonably requested by the party or parties to receive the certificates. 7.7. Owner Standing. Owner shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying laws, ordinances, resolutions or City Council actions authorizing this Agreement and Owner shall be entitled to intervene in any such litigation. Page 7 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 ADDroved:June 26.2018 7.8. Venue and Jurisdiction. This Agreement shall be construed in accordance with the laws of the State of Texas and applicable ordinances, rules, regulations or policies of the City. Venue for any action under this Agreement shall lie in the State District Court of Tarrant County, Texas. This Agreement is performable in Tarrant County, Texas. 7.9. Severability. If any provision of this Agreement is held to be invalid, illegal or unenforceable,the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 7.10 Headings Not Controlling. Headings and titles used in this Agreement are for reference purposes only and shall not be deemed a part of this Agreement. 7.11. Entirety of Agreement. This Agreement, including any exhibits attached hereto and any documents incorporated herein by reference, contains the entire understanding and agreement between the City and Owner, their assigns and successors in interest, as to the matters contained herein. Any prior or contemporaneous oral or written agreement is hereby declared null and void to the extent in conflict with any provision of this Agreement. This Agreement shall not be amended unless executed in writing by both parties and approved by the City Council. This Agreement may be executed in multiple counterparts,each of which shall be considered an original,but all of which shall constitute one instrument. Page 8 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 Annroved:June 26.2018 CITY OF FORT WORTH: OWNER: By: eqe— By: Fernando Costa ---"Ettore RegaIzi Assistant City Manager A ah GB, LLC By. CzW 101�n f�2t 4%.'- nah GB, LLC oel.FORr.�� ATTEST: By: Mary K e City SecretaryXAS APPROVED AS TO FORM AND LEGALITY: By: Melinda Ramos Sr. Assistant City Attorney M& C: C-28759 Date Approved: June 26, 2018 OFFICIAL RECORD CITY SECRETARY FT.WORTH,TX Page 9 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 ADDroved:June 26.2018 STATE OF TEXAS § COUNTY OFARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Fernando Costa, Assistant City Manager of the CITY OF FORT WORTH, a municipal corporation, 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 UVD R MY HAND AND SEAL OF OFFICE this day of 2018. � TRIKINYA L. JOHNSON $0. � .-f c,sNotary Public, State of Texas Notary Pub c in for1Q Comm. Expires oa-i -zozz ` ;+� Notary D 1238832 0 the State of Tex �,,,,oF STATE OF TEXAS § COUNTY OFARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Ettore Regalzi, Manager of Alanah GB, LLC, 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. GIVEN U1*-:DER MY HAND AND SEAL OF OFFICE this .)- day of 2018. Notary Public in and for 4 r 'n: the State of Texas SARAH BURKETTMy Notary ID#130491984 ':��F.i`.`•' Expires January 11,2020 STATE OF TEXAS § COUNTY OFARRANT § BEFORE ME, the undersigned authority, on this day personally appeared Gwendlyn Regalzi, Manager of Alanah GB, LLC, 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. GIVEN UNDER MY NAND AND SEAL OF OFFICE this ?u�-d day of �VAAA , 2018. SARAH BURKETT Notary Public in and for h1y Notary ID#130491984 the State of Texas '• Expires January 11,2020 Page 10 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 Arimoved:June 26.2018 Exhibit 1: Property Description Exhibit 2: Application: (NEZ) Incentives and Tax Abatement Exhibit 3: Required Improvements description Exhibit 4: Final Survey Page 11 NEZ Tax Abatement Agreement-Alanah GB,LLC 3058 Ray Simon Drive M&C C-28759 ADDroved:June 26.2018 Exhibit 1 Property Description 3058 Ray Simon Drive, Lot B, Block 10, Karren's Addition, an addition to the City of Fort Worth, Tarrant County, Texas, according to the revised Plat recorded in Volume 388-46, Page 897, Plat Records, Tarrant County, Texas. Exhibit 2 FORT WORTH Application No. ZI 8 ' 17 City of Fort Worth Neighborhood Empowerment Zone (NEZ)Application for Basic Incentives 1 ---- Applicant• . r f Property Owner: (-e 4 a-L 7- 1 C ZE O rZ E Lott r Fbt ALL Address: (QQ9^/7_[�ct o� � SO o "-'Cn� SY WAddr r city shwa ZIP I Phone: Email: Contact: 8r41,y!ef- Z -042,dI R (Ifdi,,(ferent) Last First M.Z Phone: 972 - 7'f3 7.59.3 Email: L%19- f a_Y • 66Iy�_ Project Information NEZ certifications are project specific.Please describe your project: ❑ ❑ ❑ ❑ ❑ � 1 Single Family Multi-Family Commercial Industrial Community Facilities Mixed-Use Project Address: 505a &&�C�;::�l aN jbQ Legal Description: rat _ ._ YES NO YES NO New Construction/Addition: [K ❑ Remodel/Rehab: ❑ ' ❑ i Total New Sq.Ft. ZO.2 Total Development Cost: 185,006 YES NO Will the NEZ certified property be occupied by the property owner? ❑ ❑ If your project is a Mixed Use project,please fist all specific uses that are being proposed: YES/NO Do you wish to apply for a Municipal Property Tax abatement for this project? ff ❑ If the above answer is yes,please contact,the City of Fort Worth Neighborhood Services Department at (8 17)392-7316 or visit 1bU://fortworthtexas.goy/neighborhoods/NEZJ for additional information. YES NO Do you wish to apply for a release of certain City liens? ❑ [� Weed,Paving,Demolition and Board Up/Open Structure liens may be released For Zoningr Only YES Will a Zoning Change applica ' p be necessary forh' ro ect? ❑ --� 1 z1 ; Signature of Zoning Staff: `� Date: ReyiW 0612016 JLE FORT WORT11, Application No. City of Fort Worth Neighborhood Empowerment Zone (NEZ) Application for Basic Incentives Ackn6wledgements I hereby certify that the information provided is true and accurate to the best of my knowledge. I hereby acknowledge that I have read the NEZ Basic Incentives,which governs the granting of tax abatements,fee waivers and release of City liens, and that any VIOLATION of the terms of the NEZ Basic Incentives or MISREPRESENTATION shall constitute grounds for rejection of an application or termination of incentives at the discretion of the City. I understand that the approval of fee waivers and other incentives shall not be deemed to be approval of any aspect of the project. I understand that I am responsible for obtaining required permits and inspections from the City and in ensuring the project is located in the correct zoning district. I understand that my application will not be processed if it is incomplete. If the application is not complete within 30 days, it will be withdrawn and application fees paid will not be reimbursed. I agree to provide any additional information for determining eligibility as requested by the City. I understand that if there are taxes due or liens against any property owned in the City of Fort Worth I may not be eligible for NEZ basic incentives. I understand that I must pay all associated fees at the time of project application and/or permit submittal if I wish to submit permits prior to determination of NEZ eligibility. I understand that some permits may not be issued while NEZ eligibility is being established. T= Printed Name of Property Owner Signature of Property Owner Date Please'.mail,e-Ma�1 or ging your.completed a pl cation o . - -Ity o1'FortWorth Ptann>n g anti 1?evelopmeat ).epart3ment ;i 100U Throekmorton Street,l brt Worth,Texas 76102 Mp l DevNeaPrograni*f4rtworthtexas gov An electronic version of this form is available on our website.For more information on the NEZ Program for Basic Incentives,please visit our web site at http://fortworthtexas.gov/iieiatiborlioods/NEZ/or contact our office at(817)392-2222 or DevNezProgram@fortworthtexas.gov. For more information on Tax Abatements,see the above website or contact Neighborhood Services at (817)392-7316. For Planning and Development Office Use • YES NO Project certified for NEZ Basic Incentives: ❑ ❑ If yes,Certified By: If not certified,reason for denial: Revised 05/2016 JLE Exhibit 3 Project Description New Construction of a single family residence • 1959 square feet living space • 3 bedroom, 3 bath • Covered front porch • Living Room • Kitchen with breakfast nook • Laundry area • Game Room • Full brick exterior • Detached 2 car garage Exhibit 4 Final Survey To be submitted after construction. City of Fort Worth, Texas Mayor and Council Communication COUNCIL ACTION: Approved on 6/26/2018 DATE: Tuesday,June 26,2018 REFERENCE NO.: C-28759 LOG NAME: 193058RAYSIMON SUBJECT: Authorize Execution of a Five-Year Tax Abatement Agreement with Alanah GB, LLC,for the Construction of a Single-Family Dwelling Located at 3058 Ray Simon Drive in the 28th Street/Meacham Neighborhood Empowerment Zone (COUNCIL DISTRICT 2) RECOMMENDATION: It is recommended that the City Council authorize the execution of a Five-Year Tax Abatement Agreement with Alanah GB,LLC for the construction of a single-family dwelling located at 3058 Ray Simon Drive in the 28th Street/Meacham Neighborhood Empowerment Zone,in accordance with the Neighborhood Empowerment Zone Tax Abatement Policy and Basic Incentives. DISCUSSION: Alanah GB LLC (Property Owner)is the owner of the property described as Lot B,Block 10,Karen's Addition, an addition to the City of Fort Worth, Tarrant County,Texas, according to the revised Plat recorded in Volume 388-46,Page 897,Plat Records,Tarrant County,Texas,at 3058 Ray Simon Dr.,Fort Worth, Texas. The property is located within the 28th Street/Meacham Neighborhood Empowerment Zone (NEZ). The Property Owner plans to invest an estimated amount of$185,000.00 to construct an approximately 1,959 square foot single-family residence and detached garage (Project). The Project will be used as a second residence for the owner. The Neighborhood Services Department reviewed the application and certified that the Property Owner and Project met the eligibility criteria to receive a NEZ Municipal Property Tax Abatement. The NEZ Basic Incentives includes a Five-Year Municipal Property Tax Abatement on the increased value of improvements to the qualified owner of any new construction or rehabilitation within the NEZ. Upon execution of the Agreement,the total assessed value of the improvements used for calculating municipal property tax will be frozen for a period of five years starting January 2019 at the estimated pre-improvement value as defined by the Tarrant Appraisal District(TAD)in May 2018 for the property as follows: re-Improvement TAD Value of $ Improvements 0.00 re-Improvement Estimated $15,000.00 Value of Land Total Pre-Improvement $15,000.00 Estimated Value The municipal property tax on the improved value of the Project after construction is estimated in the amount of$1,489.00 per year for a total amount of$7,445.00 over the five-year period. However,this estimate may differ from the actual tax abatement value,which will be calculated based on the Tarrant Appraisal District appraised value of the property. In the event of a sale of this property, the Tax Abatement Agreement may be assigned to a new owner's first mortgage or a new owner as a secondary residence. All other assignments must be approved by the City Council. This property is located in COUNCIL DISTRICT 2. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that upon approval of the above recommendations an estimated$7,445.00 in property taxes will be abated over the five year period from 2019-2023. This amount will be included in the City's five year financial forecast. FUND IDENTIFIERS (FIDS): ig Department Account Project Program Activity Budget Reference# Amount Fund ID ID year (Chartfield 2) FROM Department Account Project Program Activity Budget Reference# Amount Fund ID ID year (Chartfield 2) CERTIFICATIONS: Submitted for Ci , Manager's Office by: Fernando Costa (6122) Originating Department Head: Aubrey Thagard (8187) Additional Information Contact: Sarah Odle (7316) ATTACHMENTS 1. 3058 Ray Simon Dr Man.ndf (Public) 2. Form 1295 filed.pdf (Public) 3. LRE Ettore Ft Worth house Garage Plan.pdf (Public) 4. LRE Ettore Ft Worth house plans -Elevations.pdf (Public) CERTIFICATE OF INTERESTED PARTIES FORM 1295 1 of 1 Complete Nos.1-4 and 6 if there are interested parties. OFFICE USE ONLY Complete Nos.1,2,3,5,and 6 if there are no interested parties. CERTIFICATION OF FILING 1 Name of business entity filing form,and the city,state and country of the business entity's place Certificate Number: of business. 2018-375361 ALANAH GB, LLC FORT WORTH,TX United States Date Filed: 2 Name of governmental entity or state agency that is a party to the contract for which the form is07/03/2018 being filed. CITY OF FORT WORTH ]Date=1d: 3 Provide the identification number used by the governmental entity or state agency to track or identify the contract,and pr ide a description of the services,goods,or other property to be provided under the contract. 2018-345134 TBD tax abatement Nature of interest 4 Name of Interested Party City,State,Country(place of business) (check applicable) Controlling intermediary 5 Check only if there is NO Interested Party. X 6 UNSWORN DECLARATION My name isICSzCAcp-A `t \ and my date of birth is ' \ My address is �Y \ 1 � / _/— ,—���, U�A U-(Z (street) (city) (state) (zip code) (country) I declare under penalty of perjury that the foregoing is true and correct. �( Executed in County, State of on the day of \ 211 V _. (month) (year) Signature of au or' ed agent of contracting business entity (Declarant) Forms provided by Texas Ethics Commission www.ethics.state.tx.us Version V1.0.6711