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HomeMy WebLinkAboutResolution 1401iS. _ 'fk'- _ .. l~ Resolution CITY OF FORT WORTR COUNCIL RESOLUTION NO.~L 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 Consti- tution 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 Cen- tral Business District; and WHEREAS, the creation of ~a specified residential rein- vestment zone will be reasonably likely to contribute to the retention or expansion of primary employment ,or to attract major investment that would be a benefit to the property and that would contribute to the economic development of the City of Fort Worth; 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 abatement agreements which are a prerequisite for designation of reinvestment zones; and WHEREAS, the establishment of specific criteria, guide- lines and procedures are necessary to effectively and fairly ad- minister the provision of economic development incentives; and WHEREAS, State Law requires the adoption of criteria and guidelines governing the establishment of tax abatement agreements; CITY OP FORT WORTH NOW, THEREFORE, BE IT RESOLVED BY THE CITY•COUNCIL OF THE CITY OF FORT WORTH, TEXAS: SECTION I. THAT the City of Fort Worth does hereby elect to become eligible to participate in tax abatement. SECTION II. THAT the City of Fort Worth hereby establishes a Comprehensive 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. SECTION III. THAT the criteria and guidelines established within the Comprehensive 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 IV. THAT this resolution shall take effect from and after its final date of passage, and it is accord- ingly so ordered. • PASSED AND APPROVED BY THE CITY COUNCIL OF THE .CITY OF FORT WORTH, TEXAS, this 21st day of March, A.D., 1989. MAYOR ATTEST: a~ov~n er CITY CQtN~CIL City Secretary MAR 21 1989 APPROVED AS TO FORM:. • s-f iserwm! ~ ~ Clt~ ~! taR ReML~'itia~ City Attorney O ~ -I-1 r ~1'PY OP PORT NIORT9 r CITY OF FORT WORTR POLICY for TAX ABATEMENT TO QUALIFYING DOWNTOWN I. General Purpose and Objectives STATEMENT RESIDENTIAL PROJECTS The City of Fort Worth is committed to the promotion of high quality development in ail parts of the City and to an ongoing improvement in the quality of life for its citizens. These ob- jectives 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 development of downtown housing opportunities. The city feels 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 development and community goals will be achieved through the use of the abatement. Tax abatements are granted to the owner of improvements on real pro- perty. Projects which are developed involving leased real pro- • perty shall be governed under special terms and conditions which may be set forth in the agreement governing each specific tax abatement. - 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 improvement 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 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 • other 1 * For tune(s) dential square project must enhance property values and complement end uses in the downtown. new construction, the project must contain a struc- which when completed, has a total leasable resi- area equal to two-thirds of the total leasable 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 III 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 - 2 - _„ 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 * For renovation, the amount of new investment (per build- ing 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~) of the total leasable square footage of the property (excluding parking). * The project must make a substantial contribution to development efforts in the City by enhancing either addi- tional development activity or furthering redevelopment and preservation activities within the downtown special assess- ment district, the Fort Worth Improvement District No. 1. • 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 responding to the following questions, the applicant should indicate the appropriate time frames in which the proposed events and/or resulting impacts will occur, where applicable. Addition- ally, 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 avail- able 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. 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. What will be the cost to the City of Fort Worth to provide municipal services to the proposed project? What infrastructure construction would be required? - 3 - Employment Impact How many new jobs will be created in Fort Worth? What types of jobs will be created? What will be the total projected annual payroll of the' newly created jobs? Fiscal Impact How much real and personal property value will be added to the tax rolls? How much direct sales tax will be generated? How will this project affect existing businesses and/or office facilities? What is the total annual operating budget of this facility projected to be? Community Impact • What effect would the project have on the local housing market? What environmental impact, if any, will be created by the project? How compatible is the project with the city's comprehensive plan? What rezoning or platting/replatting will be required? What will be the impact on local school districts? What will be the impact on the county government? What will be the impact on all other taxing entities? • What will be the impact on the City of Fort Worth? 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. - 4 - -'~. - 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 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 ten (10) years and 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 shall also be abated until the expiration of the abatement period referred to hereinabove. If a project is not 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 Abate- ment" 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. 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. - 5 - ?'_ 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 may be 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 hold the public hearing and 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 adoption of a resolution 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. 2. 3. 4. • 5. General description of the project; Amount of the tax abatement; Duration of the abatement; Type, number, location and timetable of planned improvements; and 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 parti- cipation in the tax abatement agreement between the City of Fort Worth and the applicant. - 6 - A' ''i , C~ J . r. . 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 agree- ment. 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 appli- cant'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. ald/3/13/89 APPRUVED BY CITY COWVGIL wV+R.2t i989 ,~ ' ~~. • Qtf 8~sobrA 1!t City o! Rre Wad+.'l~rau~ - 7 -